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03/18/2014

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M A N A G IN G F O R R E S U L T S

It is th e p o lic y o f th e F e d e ra l G o v e r n m e n t to s p e n d ta x p a y e r d o lla r s e ffe c tiv e ly a n d m o r e e ffe c tiv e ly e a c h y e a r. A g e n c ie s s h a ll a p p ly ta x p a y e r r e s o u r c e s e ffic ie n tly in a m a n n e r th a t m a x im iz e s th e e ffe c tiv e n e s s o f G o v e rn m e n t p ro g ra m s in s e rv in g th e A m e ric a n p e o p le .

Executive Order13450: Improving GovernmentProgram Performance
P re s id e n t G e o rg e W . B u s h
P r e s id e n t G e o r g e W . B u s h s ig n s E x e c u tiv e O r d e r in s titu tio n a liz in g
p r o g r a m im p r o v e m e n t a n d a c c o u n ta b ility .
T h r o u g h
th e
P r e s id e n t \u2019s

M anagem ent Agenda (PM A) launched in 2001, Federal a g e n c ie s a n d th e ir e m p lo y e e s h a v e la id th e

fo u n d a tio n
n e c e s s a r y
fo r

c o n tin u a l im provem ents in G overnm ent perform ance. A gencies,program s,and staffm usthave clear, tr a n s p a r e n t g o a ls s o th a t th e A m e r ic a n p e o p le can hold them accountable forresults.

T h e P M A in c lu d e s fiv e m a jo r in itia tiv e s . Each initiative\u2019s prim ary goal is to help m ake program s work better.

T h e s e in i-
tiatives\u2014 Im proved
P r o g r a m

P erform ance; S tr a te g ic M a n a g e m e n t o f H u m a n C a p ita l; E xpanded E lectronic G overnm ent; Im proved Financial Perform ance;

a n d
C o m p e titiv e
S ourcing\u2014 have achieved rem arkable success. D uring this A dm inistration, and for the first tim e,
a g e n c ie s p u b lic ly r e p o r t g o a ls fo r w h a t t h e y e x p e c t t o a c h ie v e in t h e n e x t y e a r a n d b e y o n d .

To institutionalize the results-driven culture of the P M A , P resident B ush issued an E xecutive O rder (E O ) on N ovem ber 1 3, 2007, that form alizes the com m itm ent of the G overnm ent to spend taxpayers\u2019m oney w isely and m ore effectively every year. T he E O ensures agency and program per- form ance is transparent so that taxpayers have the criticalinform ation needed to hold G overnm ent a c c o u n t a b le .

P E R F O R M IN G B E T T E R

A gencies have system atically review ed the perform ance ofnearly allprogram s (over 1 ,000) using a consistentm ethodology called the Program Assessm entRating Tool(PART).These reviews have helped ensure that allprogram s have clear, specific definitions of success, outcom e-oriented perfor- m ance m easures to track that success, and concrete im provem ent plans. Im portantly, all of this in fo r m a tio n is tr a n s p a r e n t a n d a v a ila b le to th e p u b lic o nw w w .E xpectM ore.gov.

S om e key successes:
\u2022 89 percentofprogram sestablished orclarified theirlong-term and annualperform ancegoalsto
focus on outcom es that are im portant to the A m erican people.
\u2022 82 percent ofprogram s are achieving their perform ance goals.
2 9
3 0
M A N A G IN G F O R R E S U L T S
\u2022 73 percent of program s are m easuring their efficiency, a relatively new m etric for G overnm ent
program s.
\u2022 70percentofprogram sareim provingefficiencyannually,producingm orevalueperdollarspent.
\u2022 55 percent of program s that w ere initially unable to dem onstrate results have im proved their
overall perform ance rating.

V is it o r s t ow w w .E xpectM ore.gov c a n le a r n w h e r e t h e G o v e r n m e n t is s u c c e s s fu l, w h e r e it fa lls s h o r t , and in both situations,whatG overnm entisdoingtoim proveprogram perform anceeveryyear.They can also find im portant docum ents about agency perform ance and m anagem ent, including every m ajor agency\u2019s budget,financialreport,and perform ance report card.

50%
38%
29%
24%
22%
19%
5%
5%
4%
4%
3%
3%
15%
20%
26%
28%
28%
29%
24%
26%
26%
29%
30%
31%
6%
11%
15%
15%
17%
18%
2002 (234)
2003 (407)
2004 (607)
2005 (793)
2006 (977) 2007 (1,011)
0
20%
40%
60%
80%
100%
Effective
Moderately Effective
Adequate
Ineffective
Results Not Demonstrated
Program Ratings are Improving
Cumulative Program Results by Ratings Category (2002-2007)
To im prove the results ofFederalprogram s,
in 2 0 0 8 a g e n c ie s w ill:

\u2022 Im prove the quality of perform ance and efficiency goals to ensure they are consistent, reasonably aggressive, and outcom e-oriented goals.

\u2022 Im plem ent
th e
P r e s id e n t \u2019s
E O
b y

ensuring each agency appoints a Perfor- m a n c e I m p r o v e m e n t O ffic e r w h o is h e ld accountable for coordinating perform ance m anagem ent

a c t i v i t i e s
a n d
h e lp in g
the head of the agency hold personnel
a c c o u n t a b le fo r r e s u lt s .
IM P R O V IN G H U M A N C A P IT A L M A N A G E M E N T

F e d e r a l m a n a g e r s a n d e m p lo y e e s a r e d e v e lo p in g c le a r g o a ls fo r e a c h e m p lo y e e th a t h e lp p r o v id e a fram ew ork for m eaningful feedback on perform ance. To im prove program perform ance every year, em ployees m ust understand how their efforts contribute to agency achievem ents and w ork w ith their m anagers to devise strategies for continualim provem ent. A gencies are also w orking to ensure personnel have the skills they need to achieve their m ission and have reduced the tim e it takes to h ir e n e w e m p lo y e e s .

S om e key successes:
\u2022 81 percent ofagencies reduced \u201cskills gaps\u201d in m ission criticaloccupations,up from 77 percent
in 2 0 0 6 .
\u2022 77 percentofagenciesreduced skillsgapsin leadership,up from 58 percentin 2006.
\u2022 78 percent ofnew em ployees are hired w ithin a 45-day tim e fram e,up from 64 percent in 2006.
T he average tim e to hire is now 31 days,dow n from 34 in 2006.
T o im p r o v e th e s k ills a n d e ffe c tiv e n e s s o f F e d e r a l e m p lo y e e s , a g e n c ie s w ill:
\u2022 E nsure m anagers are held accountable for outcom e-oriented perform ance goals.
\u2022 Dem onstratethatkeyem ployeeskillsgapshavebeen reduced through a results-based approach
by 2008.
F o r m o r e in fo r m a tio n , p le a s e v is itw w w .resu lts.gov .
TH E BU DGET FOR FISCAL YEAR 2009
3 1
U S IN G IN F O R M A T IO N T E C H N O L O G Y M O R E E F F E C T IV E L Y

B y s tr a te g ic a lly in v e s tin g in in fo r m a tio n te c h n o lo g y (I T ) a n d p r o fe s s io n a lly m a n a g in g th o s e in v e s t- m ents, agencies are positioned to provide quality inform ation and services to the public. T he P M A scorecard has established a fram ew ork for effectively u sin g IT to help achieve agen cy goals.

\u2022 Today,92 percent ofIT system s operate w ith com pleted security accreditations,com pared to 21
percent in 2001.
\u2022 50 percent of agencies im plem ent IT projects w ithin 90 percent of cost, schedule, and perfor-
m ance expectations.
To expand the benefits received from use of IT, agencies w ill:
\u2022 R educe com petency and skillgaps in the IT w orkforce to better achieve program results.
\u2022 In crease citizen satisfaction w ith IT services.
\u2022 M itigate secu rity an d privacy risks associated w ith in form ation services.
F o r m o r e in fo r m a tio n p le a s e v is itw w w .o m b .g o v / e g o v .
IM P R O V IN G F IN A N C IA L A N D R E A L P R O P E R T Y M A N A G E M E N T

T o e n s u r e m a n a g e r s h a v e c u r r e n t a n d a c c u r a te fin a n c ia l in fo r m a tio n fo r d e c is io n -m a k in g , a n d th a t t h e F e d e r a l G o v e r n m e n t p r o p e r ly a c c o u n t s fo r t a x p a y e r r e s o u r c e s , a g e n c ie s h a v e s t r e n g t h e n e d t h e ir financialm anagem ent practices.

\u2022 Forthethird straightyear,everym ajorFederalagencycom pleted itsPerform anceand Account-
a b ility R e p o r t w ith in ju s t 4 5 d a y s a fte r th e e n d o f th e fis c a l y e a r.

\u2022 A t th e s a m e tim e , F e d e r a l a g e n c ie s a r e im p r o v in g th e q u a lity o f fin a n c ia l in fo r m a tio n . T h e n u m b e r o f c le a n a u d it o p in io n s h a s in c r e a s e d to 1 9 (o f 2 4 ), w h ile th e n u m b e r o f m a te r ia l w e a k - nesses has declined by m ore than 35 percent since 2001. In addition,13 agencies have a clean o p in io n w ith n o m a te r ia l w e a k n e s s e s , u p fr o m ju s t e ig h t a g e n c ie s la s t y e a r. T h e g o a ls fo r 2 0 0 8 are for 21 agencies to earn clean audit opinions and to reduce the num ber of repeat m aterial w eaknesses to 1 0 percent.

\u2022 A gencies have also continued their efforts to ensure that their m ission critical assets are fully u tiliz e d a n d m a in ta in e d a t th e r ig h t c o s t a n d c o n d itio n . T o th a t e n d , a g e n c ie s h a v e id e n tifie d a n d d is p o s e d o f o v e r $ 7 b illio n in u n n e e d e d p r o p e r ty . T h e g o a l fo r 2 0 0 8 is to d is p o s e o f a n a d d itio n a l $ 1 b illio n in u n n e e d e d p r o p e r ty a n d d is p o s e o f a c u m u la tiv e $ 1 5 b illio n b y 2 0 1 5 .

F o r m o r e in fo r m a tio n p le a s e v is itw w w .o m b .g o v / fin a n c ia l.

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