1. DECISIONMAKING AND DEPARTMENTAL ORGANIZATION

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CIA-RDP79-00498A000300050037-3
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RIPPUB
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K
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11
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December 9, 2016
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August 4, 2000
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37
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*OMB Waiver Letter In ERU File* Approved For ReleasG4001/06/09: CIA-RDP79-00498A000306G80037-3 1. DECISIONMAKING AND DEPARTMENTAL ORGANIZATION Each agency should: A. Determine the extent to which there is a unit within the agency reporting directly to the agency head which has the mandate from the agency head (and the requisite personnel) to assist the agency head in carrying out the 'following in an unbiased manner: (a) determining MBO's, (b) assuring that important decisions are made only after consideration of all relevant factors, including the impact on competing priority goals of the Administration and on programs of other agencies, and the views of the public, (c) 'identifying the need for and guiding the design and implementation of program impact and efficiency evaluations, (d) assuring prompt and complete implementation of the agency head's decisions, and (e) coordinating all of the foregoing with the agency's budget process. B. B Se ternber 21, re to OMB on the a en ' assessm LJ situation wit_ QjLg=g and Me steps taken and remaining to be taken to establish or upgrade such a unit. Such steps shall not involve an increase in ceilings or supergrades. C. Review for possible improvement, the agency's MBO's for FY 1977, and in accordance with OMB guidance to be furnished, submit ro d a en,y head INIBO'sforFY)Q977 and 1978,'asypart tri FY- N!8 budget ro D. Promptly include among the agency's MBO's those necessary- to carry out the actions directed by the President at the meeting. E. Develop and insist on utilization of the decisionmaking checklist approach to decisionmaking. OMB will provide promptly a draft with a request for Ccomments and suggested revisions within 30 days. Review current staffing patterns and structures to identify unnecessary position layering and excessive organizational subdivisions. Develop a plan to consolidate subunits with similar and related functions. Establish guidelines which will be reviewed by OMB for "assistant to" positions, including number per policy official and grade level. Procedures should be established to ensure at least agency deputy level review of proposals to create new subdivisions and "assistant to" positions. OMB is developing procedures whereby each year, in conjunction with budget submissions, each agency will also submit a management plan for the budget year. Such plans will include initiatives to carry out actions directed by the President at the meeting as well as such other management initiatives as appear desirable. Management plans will be reviewed and finalized in the Presidential budget process. Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 Approved For Release 2001/06/09: CIA-RDP79-00498A000300050037-3 2. EVALUATION OF CURRENT PROGRAMS Each agency should: A. Assign to its policy and evaluation unit (see 1.A and B in Decisionmaking and Departmental Organization) responsibility to identify the need for, and guide the design and implementation of program impact and efficiency evaluations. For this purpose program impact evaluation means the comprehensive assessments of program impact to determine whether a program is adequately and effectively meeting its objectives as established Dior perceived) in statute or regulation. Program impact evaluations also seek to determine the cost, including the extent of unintended adverse consequences. Efficiency evaluations do not question the need for or intent of the program. Efficiency evaluations may focus on a given segment of a program to determine if there are- ways of achieving costs savings, or a more efficient approach to providing service delivery under the program, or a less burdensome way to achieve the programmatic objectives. At the meeting, this was referred to as B. ~y August 23. ider to OMB ten efficiency evaluations -- determined on _pr ori, t, ?bbas now un'd erway or planner a font peri d through December 31, 1976, and (b) to the end of FY 1977, all with timetables for completion. If the agency can't identify or handle ten, it must at least l i exp a n why not. C. Develop in accordance with OMB guidance which will follow, a management plan (to complement' khe ageniry budget-submission for FY 1978), and as part thereof describe the agency's proposed program impact evaluations to be completed or at least started in FY 1977, FY 1978, and FY 1979. These plans will be reviewed and finalized in the course of development of the FY 1978 budget. As part of such management plan, the agency will be expected to provide for systems that will assure (a) identification of those programs that should receive program impact and/'or efficiency evaluations on a regular basis, (b), the proper timing and frequency, (c) proper design, (d) proper public participation in design and implementation, (e) proper interagency coordination in such evaluations, and (f) that such evaluations are properly coordinated with the budget'process and policy-making. Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 / OFFICE OF MANAGEMENT AND BUDGET WASHINGTON. D.C. 20503 July 27, 1976 MEMORANDUM FOR THE SECRETARY OF STATE THE SECRETARY OF THE TREASURY THE SECRETARY OF DEFENSE THE ATTORNEY GENERAL THE SECRETARY OF THE INTERIOR THE SECRETARY OF AGRICULTURE THE SECRETARY OF COMMERCE THE SECRETARY OF LABOR THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT THE SECRETARY OF TRANSPORTATION rs"' THE DIRECTOR, CENTRAL INTELLIGENCE AGENCY THE ADMINISTRATOR OF GENERAL SERVICES THE ADMINISTRATOR, NATIONAL AERONAUTICS AND SPACE ADMINISTRATION THE CHAIRMAN, CIVIL SERVICE COMMISSION THE ADMINISTRATOR, SMALL BUSINESS ADMINISTRATION THE ADMINISTRATOR OF VETERANS AFFAIRS THE ADMINISTRATOR, ENERGY, RESEARCH AND DEVELOPMENT ADMINISTRATION THE ADMINISTRATOR, ENVIRONMENTAL PROTECTION AGENCY THE ADMINISTRATOR, FEDERAL ENERGY ADMINISTRATION SUBJECT: Presidential Management Initiatives At the President's management meeting on July 23 he asked that we advise you promptly as to the specific actions he expects to be taken by each agency. As you know, the meeting covered a lot of territory. For purposes of this follow-up we have divided the subject matter as follows: 1. Decisionmaking and departmental organization. 2. Evaluation of current programs. 3. Reduction of the burden of Federal reporting and regulations. 4. Contracting out and holding down overhead costs. 5. Personnel management. Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 Approved For Relea2001/06/09 : CIA-RDP79-00498A00050037-3 A more detailed summary sheet of things to be done in each of these areas is attached. As you will note some actions are to be taken in the near future - by AugU?t ,? SeStember 3, September 21, or October 21 ~aas,th,~e casetmay be--but some go into fist earl y ` Ho vevei atevor these s ecific times for action, appreciate rtavang from youwby August 23 an over__ to hovw ;you are ~np about t,ackll;n each ;?f"`t ie.~n~itiatives. Within two weeks of receipt of our inttia~ plan,ywe will be bacsx.:yQ~1~ v~ctlisuch-cornme~tsandsuggestion.~as The President wants to be brought up to date monthly on how each of the agencies is progressing. Accordingly, we will be sending to you shortly a suggested format to be used for this purpose. We hope that there would be two such reports submitted in time for the next management meeting, which the President expects to hold in mid-September. I have asked Fernando Oaxaca, Associate Director for Management and Operations, to coordinate these matters for me. He can be reached on 395-3423. I would appre- ciate your letting me and Mr. Oaxaca know as soon as possible the name of the person in your agency who will be responsible for this overall effort. Many of the tasks contemplated by these initiatives are not easy ones. However, the President has ?iven,.us clear marching orders and I believe that by working together some very substantial further improvements will result. If my staff or I can be of help at any point along the way, please let us know. James T. Lynn Director Attachments Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 Approved For Release.2001/06/09: CIA-RDP79-00498A0003W50037-3 3. REDUCTION IN THE BURDEN OF FEDERAL REPORTING AND REGULATION Each agency should: A. Reduce the burden of Federal paperwork on the public (hours spent in compliance) by at least 5% by the end of FY 1977 and by an additional 15- 20% by the end of FY 1978 (which gives enough time for enactment and implementation of substantial reform through legislation). By August 23, each agency is to sub. to a tentative plan for reducing paperwork burden furth r with timetables through December 3I; 19776, "FY-1971 ai cd 7 ~" o the extent passible, each agency should adopt the 5%, 15- 20% targets or better them. In addition to providing guidelines for agency use in achieving this goal, OMB will direct agency head attention to specific programs which appear to have large reporting burdens and will request that specific attention be given to these programs., Overall ceilings will be established by OMB for the number of repetitive and single-time reports to be permitted. Present stringent short-term guidelines will come into effect automatically when ceiling is reached. Such guidelines will be introduced selectively for agencies which reach their assigned share of the overall ceilings even though the ceiling itself may not be reached for the Executive Branch as a whole. OMB will develop additional standardized financial and administrative procedures to reduce the reporting burden on recipients of Federal grants. B. Agencies are to develop and submit to OMB specific schedules for regular, periodic review of regulations governing programs to assure that administrative procedures and reporting meet only basic continuing needs for agency program management. See evaluations above. Only as an example, consider improvements in auditing grantees; the same programs are of ten audited by Federal, State and local audit groups. Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 Ap'provgd1Fo' Releas 01/06/09: CIA-RDP79-00498A00030If030037-3 CONTRACTING OUT AND HOLDING DOWN OVERHEAD COSTS \.A. Contracting Out. To further the objective of maximum reliance on the Circular No. A-76 should be installed. 8..Pr.,..i~Y t)ir imlementintaetpns an,j_prQce4 es for contractingx out to ensure that all in-house ~~cl r do t?~anactivit~es~e, re iaweci andrtecr~n nated'if commercial ngtJ91tif,4n.ex"pti?11,tO?, t1 .coa.-fracting.;.out,.policyw Agencies ` are also expected to tighten the review of proposals to initiate or expand in-house commercial and industrial activities. To assure that such instructions are carried out, systems for periodic review of existing functions and review of new proposals from the standpoint of B. Overhead Cost. private sector in accordance with OMB Circular No. A-76, agencies should: be expected to better these targets, wherever possible. 1. By Au ust 23, sub i , ,?0.1 I3~Y.ac,~-in-iti.. lan for increasing their re lance on the ate, se tojrr to carry out over e~"ac3~or~~ rogram functions in accordance with the Circular, unles very good reasons are given, each agency will 'lbe exile t l to identify at least five functions' presently performed in-house that will be reviewed from this standpoint (together with timetables for action). Agencies will 1. Identification of Overhead Costs. Agencies should set up systems for routinely determining and analyzing overhead costs. This need not involve costly new recordkeeping systems, but could rely instead on cost-finding techniques and special studies. Travel. To hold down travel costs: (a) Agency heads should personally review fiscal year 1976 reports of travel savings and accomplishments prior to submission to GSA in August 1.976 (as required by 0MB Bulletin No. 76-9, as amended) - to identify areas where greater improvement can be m ade. . (b) By Septernber3, agencies should deve1op,anc r p v to,.G-SA.plans_ toictlie_r_educe..trael +os in fiscal yeas 1977. This plan should include a specific: and challenging reduction goal and should reemphasize the OMB travel guidelines. (c) OMB will forward suggested methods, and procedures for agency consideration. for further controlling travel to assist in the development of this plan. PROMMOMMO Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 Approved For Release001/06/09 : CIA-RDP79-00498 0003GW50037-3 (a) Agencies with substantial ADP investments (i.e., those that received an OMB allowance letter in February 1976) should organize a program to: 3. ADP Practices. reduce the unit cost of data processing; eliminate nonessential or marginal computer workload; reduce equipment rental through increased competition; analyze the need and methods used for expanding government computer capacity; minimize the automatic computer issuance of inaccurate or unnecessary checks and purchase orders; and - strengthen agency ADP management to overcome problems of computer fraud and security. (b) By August 23, all such ag~n~,QUId._preare and subml, to pa.aQ05cr, ing-the-,spr, cif fic actions they will accomplish T hoth short in each off. te_ ab.re areas,,,? The plan should address and long term action steps. GSA will submit a plan for increasing the use of "third party" and ""plu to_plug`" compatible ADP rental contracts government-wide. (c) By Se tembe r,,,21, all agencies should submit a progress report in icating short term accomplishments in each area. For the very large ADP agencies (i.e., DOD, NASA, ERDA, Treasury, and HEW), this report will not include equipment rental reduction efforts. (d) I Octo e, ,.,,2 ,? the very large ADP agencies are to submit the results of an equipment rental review to GSA. This review will identify the extent to which the agency is using "third party" and "plug-to-plug'" contracting techniques, the savings that have resulted, and plans for extending the use of these techniques over the next year along with estimated additional savings. Cash Management. (a) Agencies-particularly those with significant collection operations like HUD, Interior, FEA, SBA--should follow Agriculture's lead in cash management. Agencies should modernize their cash management practices to include: - rapid billing and collecting procedures; -- proper timing of payments; and - accurate cash forecasting. (b) Treasury and OMB will assist? in these efforts, and, by- October. 2 report to the President on savings that have been or can be realized. Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 8A00030ff3Q,03'`!-3 Li . II idl' l )roduction Equi cnent. (a) Agencies should: require more efficient use of reproduction equipment; and maximize centralized field duplication services. (b) GSA should review agency efforts and, by October 21, report to they President on savings that have been or can be realized. Audiovisual Activities. (a) The Departments of Justice, Transportation, and Health, Education, and Welfare are scheduled to report to OMB in July on their plans for consolidating their audiovisual facilities. in the Washington, D.C. area. A similar report is scheduled from the Department of Defense in August. Heads of these Departments should personally review the reports prior to submission to OMB. (b) In addition--to hold down overall audiovisual costs--all agencies should: Review existing facilities both in central offices and in the field, eliminate or consolidate, where possible (keeping in mind available facilities in other agencies and in the private sector). Establish controls to prevent the acquisition of unnecessary equipment and supplies. Use existing government-owned films, video tapes and recordings in lieu of new acquisitions, where possible. By September 21, OMB is to report the results of this effort to the President. - 7. Telephone E(ui~ment and Uss . (a) Millions are spent annually on telephone services provided by GSA through the Federal Telecommunications System, as well as those services secured by direct telephone contract. (b) To reduce the cost of telephone equipment and usage, agencies should: - Review existing telephone equipment and usage to ensure optimum use of this service. c.~. Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 Approved For Relea 2001/06/09 : CIA-RDP79-0049.8A00034*050037-3 5. PERSONNEL MANAGEMENT Executive Selection and Development - Identification and training of personnel having executive promise, and development of incumbent executives. Work Force Quality - Evaluation of employee programs which affect overall work force quality, specifically: recruitment, employee performance evaluation, career advancement, managerial incentives and training. extension of such measurements to functions not presently covered, as a means of judging both managerial and individual staff performance and of improving Productivity Measurement - Improvement of productivity measurement and personnel. Position and Classification Management Systematic reexamination of internal systems, and appropriate corrective action to restrain grade escalation and t6 eliminate duplication of work or under-utilization of avoidance of congressionally mandated minimum employment levels. roductivity. Employment Ceilings -. Adherence to Presidential employment ceilings and Agencies should establish and improve comprehensive selection and development systems, under Executive Manpower Resources Boards, providing: - Selection processes which ensure that, when management vacancies occur, they are filled carefully with the best qualified individuals available. Identification of mid-career employees with the greatest managerial potential, and provision of developmental experience to prepare them for future responsibilities. Planned training and other developmental opportunities designed to focus incumbent managers' attention on their managerial responsibilities and to enhance their abilities. Each agency, by September 3, should identify (or establish) one executive selection and development system to serve as a model for stimulating the establishment of comparable systems in all major organizational components by the end of FY 1977. C. As an immediate part of this long--range and continuing effort, agencies should, by September 21, implement an operational "high potential" identification system and prepare individual development plans for a small number of people with especially high potential. 91,Hd81 ZI inp U3 Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 Request GSA's assistance in the review as appropriate. Report to OMB, by September 3, on achieved and expected savings in telephone equipment and usage. 8. Mailin, Practices. (a) To effect cost savings in postal mailings, the National Archives and Records Service (NARS) and Postal Service are submitting a plan to OMB on ways in which savings can be realized. (b) Agencies should: Issue instructions on the most economical utilization of available services based on the guidelines and handbooks issued by MARS. Provide adequate training for employees to implement the instructions. Monitor mail practices to insure that mail is sent by the most economical means. .Approved For Release 20 1/06/09 : CIA-RDP79-00498A000300056037-3 9. Seek the assistance of NARS and the Postal Service to effect economies in the handling of mail. Report to NARS by September 21 on achieved and expected savings in mail practices. Office and Other She. (a) To effect efficiencies in space utilization, agencies should: accompl shment of theiii agences mssons, and Submit plans to GSA by August 23. by GSA should rewrite Federal Property Management Regulations to refl+ct new -- r- -~_^?? ..r....~ u~iaJGQ~1V11 a,tu cL55ure That ..,. per person square footage of space is kept to a minimum in keeping with efficient i space utilization stdddh anars an oter requirments growing out of studies and reviews of agencies'space needs. This should be done b O t b c y o ec 21, Lf possible. (a) To keep unnecessary paperwork from piling up in files that are seldom if ever used and take up needed floor space, agencies should dispose of or retire records to storage in accordance with records control schedules. (b) GSA should review and reenergize agency efforts in these areas, and, by September 21, report to OMB any savings that have been or can be realized. Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3 77 Approved For Releasg,2001/06/09 : CIA-RDP79-00498A00036W500374 D. Agencies should, by August 23, begin a year-long program of evaluation of employee programs in order to identify priority ways of improving overall work force quality. These evaluations will cover the quality of recruitment, the employee performance evaluation process, career advancement, managerial incentives, and training programs.. Agencies should, by September 3, begin a year-long program for the careful, systematic reexamination of internal position management and classification systems called for in the President's May 27 memorandum, in accordance with CSC instructions issued July 2. OMB and CSC may specify special reviews or instructions on a selective basis, in agencies where there seem to be excessive problems of overgrading, duplication of 'work, or under utilization of personnel resources. - Agencies should institute a program to refine existing productivity measurements and extend them to a substantial number of functions not now covered. They should include a progress report on this program as part of their FY 1978 budget submission. General. guidance and assistance will be provided by the Bureau of, Labor Statistics and the National Center for Productivity and Quality of Working Life. Agencies should increase the applied use of productivity measures in supporting staffing and budget requirements and for purposes of management evaluation and control. A government-wide goal of two percent improvement in productivity, in the functions currently measured, will be set between now and the end of FY 1978. Each agency should include projected improvements in its calculations for its FY 1978 budget request. G. Heads of agencies should take a personal interest in ensuring that Presidential employment ceilings for both full-time permanent and total employment are not exceeded. H.('Agencies should evaluate their current internal systems for administering personnel ceilings to look for better ways of ensuring compliance with those ceilings and providing flexibility for intra-agency ceiling reallocation. A report on this evaluation should be submitted to OMB by September 21. Approved For Release 2001/06/09 : CIA-RDP79-00498A000300050037-3