1Center or American Progress | Executive Reorganization
Executive Reorganization
Six Lessons from the 1970s
By Harrison Wellford,
1
Jitinder Kohli, and James Hairston June 2011
Introduction and summary
In his January State o the Union speech, President Barack Obama promised toreorganize the executive branch.
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He said the last major restructuring was in the “dayso black and white television,” reerring to Carter’s successul reorganization o ederalagencies. Te Center or American Progress joined Harrison Wellord, who led theCarter administration’s reorganization eort, to pinpoint key lessons the Obamaadministration should heed as it develops its detailed proposal.
Whie House ocials are scheduled his week o presen he presiden wihrecommendaions or reorganizing he execuive branch o beter promoe a morecompeiive America. Te idea is no new. Presidenial aides in 1978 proposed heormaion o a “Deparmen o rade, echnology and Indusry.”Ta idea was never enaced, bu he adminisraion o hen-Presiden Jimmy Carer did oversee a large-scale and successul reorganizaion o governmen wihhe ormaion o he deparmens o energy and educaion, and comprehensivecivil service reorm.Reorganizing governmen agencies is no or he ain o hear. Like reducing hedeci, everyone is in avor o i in he absrac, bu is allure ades when presi-dens conron he winners and losers o change. Te iron law o reorganizaion isha he inensiy o a sakeholder’s ineres is oen inversely proporional o hesize o he sake a risk. No uni o governmen is so obscure or redundan ha anagency head or member o Congress will no soop o deend i. Srucural reor-ganizaions, in which agencies are eliminaed or shied on an organizaional char,are especially dicul.
1 Harrison Wellord, now chie executive ofcer o Wellord Energy Group in Washington, D.C., was executive associate directoro the Ofce o Management and Budget and led the President’s Reorganization Project under Jimmy Carter.2 On March 11, 2011, President Barack Obama issued a presidential memorandum directing that “Within 90 days rom the dateo this memorandum, the Chie Perormance Ofcer shall submit recommendations to me or presidential and, ultimately,congressional action to restructure and streamline Federal Government programs ocused on trade and competitiveness.” The 90 day deadline expires today.
2Center or American Progress | Executive Reorganization
Te las presiden o underake a reorganizaion o he ype Obama is conemplaing was Carer, who campaigned on he promise o cleaning up Washingon. Par o hispledge was o conduc a comprehensive reorganizaion o he execuive branch simi-lar o he one he did as Georgia’s governor rom 1971 o 1975. Carer’s “PresidenialReorganizaion Projec” was successul.Te Deparmen o Energy Organizaion Ac o 1977 creaed he Deparmen o Energy by bringing ogeher he Aomic Energy Commission, he Federal PowerCommission, and energy programs rom he deparmens o agriculure and heinerior. wo years laer, Carer’s proposal o orm a new Deparmen o Educaion was enaced by Congress. Lawmakers also agreed o 10 smaller reorganizaion plans,covering civil righs enorcemen, disaser assisance, and nuclear power regulaion,among oher areas. Carer also oversaw major civil service reorm including hecreaion o he Senior Execuive Service.Presiden Obama has made a similar promise o reorganize governmen, saying“We can’ win he uure wih a governmen o he pas.” In March he asked Jerey Ziens, he U.S. Chie Perormance Ocer, wih developing specic proposals orreorganizaion ocused on rade and compeiiveness. Specic recommendaions aredue o he presiden his week. As he Obama adminisraion shis gear rom developing proposals o geting hemenaced and implemened, he presiden should ake accoun o six lessons rom heCarer era:
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Be crystal clear about reorganization’s goals.
Te more concree and policy-relaedhe beter.
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Don’t underestimate the political capital required of the president.
He mus also beprepared o inves his personal ime o achieve a successul reorganizaion.
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Be ready for the war within.
Te presiden mus spend as much ime selling his planinernally as he does o ouside groups. Cabine members and agency heads caredeeply abou ur and will gh hard o deend i.
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Be ready for the war on the Hill.
Reorganizaions can only be enaced by Congress.Resisance is vehemen especially among lawmakers whose power base is hreaenedas commitee boundaries change.
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Enlist external allies and understand foes.
Key rade organizaions, ineres groups,governors, and mayors wih a sake mus be idenied and brough on board, o pre-emp opposiion o he presiden’s plan.
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Reorganization requires organization.
Tere is more o reorganizaion han he poliics.Tey are major organizaional change projecs and require a skilled eam o lead hem.Tere is one overarching ruh o reorganizaion ha underlies hese recommendaions:Reorganizaion mus ollow policy—no vice versa. Shuing boxes on an org char isno a subsiue or policy reorm. On he oher hand, a badly organized governmencan hold back implemenaion o good policy.
3Center or American Progress | Executive Reorganization
In he December CAP repor “ A Focus on Compeiiveness ,” John Podesa, Sarah Warell,and Jiinder Kohli argued ha he curren ragmenaion o responsibiliy or compeiive-ness policy made i dicul or he ederal governmen o successully implemen policieso promoe our uure prosperiy. We believe a beter policy ramework is needed and hagovernmen needs o be beter organized o implemen i.Te presiden’s reorganizaion iniiaive could se he sage or ha new ramework, andheeding lessons rom he Carer era will improve is chances o success.
Six lessons from the Carter era
Here are six broad lessons rom he Carer era ha he Obama reorganizaion eamshould keep in mind as i atemps o implemen is own major resrucuring o heexecuive branch.
Be crystal clear about reorganization’s goals
A successul reorganizaion requires he presiden o se ou a compelling case or change.Carer campaigned on he need o make governmen more ecien, responsive, and accoun-able—and he relied on his rack record as governor o Georgia, where he had led a wholesaleresrucuring o he sae’s execuive branch. Each reorganizaion proposal rom he Careream specied deailed objecives in cos savings, accounabiliy, openness, and execuion.During he campaign, Carer promised he American people ha i eleced he would reducehe number o governmen agencies and commitees rom nearly 2,000 o 200. While hepromise o cu he number o agencies was compelling campaign rheoric, he Whie Houserealized aer he elecion ha i ied he presiden o a quesionable meric o success, so i was quiely abandoned aer he rs 100 days. Insead, he Whie House saw eliminaingagencies or overlapping uncions as a means owards beter governmen, no an end.o make a successul case or reorganizaion, he presiden has o convincingly answerhree quesions:
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Why is reorganizaion necessary righ now?
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Wha does reorganizaion seek o achieve?
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Wha will be he merics o success?Having a clear policy agenda or supporers o rally behind—be i compeiiveness, job cre-aion, deci reducion, or improving governmen perormance—is essenial o he successo reorganizaion. In he curren poliical and economic climae, he adminisraion will wano rame he benes o reorganizaion as saving money, creaing jobs, or boh.
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Executive Reorganization
Harrison Wellford, Jitinder Kholi, and James Harrison on six lessons about executive reorganization the Obama administration could learn from the Carter era.
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