MEMORANDUM FOR HEADS OF ALL EXECUTIVE DEPARTMENTS AND AGENCIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000400170039-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: March 13, 2003
• Sequence Number: 39
• Publication Date: November 16, 1966
• Content Type: MF

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November 16, 1966
There is no subject of greater importance to the people of this country
and to me than the efficient a.nd effective operation a.nd evaluation of
our programs, At my recommendation, the Congress has entrusted
the Executive Branch of the Government with a wide variety of far-
reaching social programs of unparalleled significance in the history of
this country. It is essential that we in the Executive Branch, as the
trustees of the public's funds appropriated for these programs, make
certain that they are operated at a maximum level of efficiency and
effectiveness for all Americans, and particularly for the people they
are designed to reach. This can only be accomplished by bringing into
the Federal Government the most modern management techniques
available through our free enterprise system in American business.
My deep concern to make certain that this be done was the basis for
my memorandum of August 25, 1965. That memorandum directed the
institution of a Government-wide planning-programming-and budgeting
system of the type that has proven successful in so many wide-ranging,
large corporate and defense and space activities. We now are receiving
the benefits of the first year's experience with this system. Some
agencies have put it into effect even more rapidly than we anticipated.
Too many agencies, however, have been slow in establishing effective
planning-programming-and budgeting systems. And, even when
established, they have often not been used in making top management
decisions, It is my desire that every agency of the Federal Government
have such a system, and use it effectively.
For through this system, as I stated at the outset, 'we will have the
ability to
- Identify our national goals with greater precision.
Determine which of those goals are the most urgent.
Develop and analyze alternative means of reaching those
goals most effectively.
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' - Inform ourselves accurately of the probable costs
of .our programs.
Improve the performance of the Federal Government
to insure the American taxpayer a dollar's worth of
service for each dollar spent.
It is clear that these are not easy tasks. In too many cases the
quality of analysis needs substantial improvement. I recognize
that it takes time to develop the personnel, the skills, the data and
the understanding of what needs to be done. But it is essential that
all of us work to reduce this time to a minimum. This means that
you musts
Train and recruit the necessary staff.
Subject your objectives, programs, coats, and
accomplishments to systematic and continuous review.
Search for new and more effective ways of accomplish-
ing their objectives.
Relate. analysis explicitly to budget requests so that
those requests follow from and support comprehensive
and well-thought-out agency plans.
Most important, this effort requires your personal interest and
participation. Objectives will not be questioned unless you make it
clear you want them questioned. Existing programs will not be
evaluated critically unless you. insist upon it. Alternatives will not
be presented unless you demand them. The hard choices will not be
made well unless you make them, and do so on the basis of critiques
and analyses prepared by your own staffs. Getting these things done
is up to you.
I intend, on a Government-wide basis, to question objectives,
evaluate progress, seek alternatives and make the hard choices on
the basis of careful analyses. And I want you to do the same thing
within your agencies. I have, therefore, asked the Budget Director
to sit down with each of you to review your Planning-Programming-
Budgeting Systems and give you his objective analysis of its effectiveness.
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1-Ie will then report to me on a quarterly basis, beginning with
the first quarter of Calendar 1967, on the progress of your
implementation of my directive.
As I make my budget and legislative decisions in the period ahead,
I will look to the materials you have produced in .the Planning-
Programming-Budgeting System process for your appraisal of
priority needs and the most effective ways of meeting them,
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