Building the Enterprise - Booz Allen Hamilton

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STRATEGY 1DEVELOP AN ENTERPRISEPERFORMANCE PLAN WITHSENIOR-LEVEL COMMITMENTTO DRIVE CROSS-AGENCYGOALS AND MISSIONSNow that the administration has pilotedthe initial set of cross-agencypriority goals required by GPRAMA,it is time for the president to institutionalizethe enterprise model andtake it to scale.We recommend that he start bydeveloping—and, more importantly,publicly committing to—a strategicenterprise performance plan. Thiscomprehensive, government-wideblueprint will identify the broadarray of missions and functions (includingthe top presidential priorities)that can best be achieved by thewhole-of-government enterprise. Itwill set outcome- and time-basedgoals for enterprise missions andfunctions. As discussed in strategies2 and 3, it will put the necessaryinfrastructure and accountabilitymechanisms in place to increase thelikelihood those targets are achieved.As noted earlier, this won’t bethe first time a strategic enterpriseperformance plan has been attempted.The first attempt in 1998under GPRA got good marks fromGAO, but nonetheless failed in partbecause there was no presidentialcommitment and no one was incharge of making sure the plan wasimplemented.The plan should be organizedaround enterprise goals to includethe program and policy priorities ofthe president, such as reducing theunemployment rate of veterans. Italso should include enduring missionsand functions, such as assuringthe safety of the nation’s food supply,that are no less important butthat have come to be expected bythe American people and should notrequire presidential attention to ensuresuccess or necessarily changealong with administrations.Each enterprise goal shouldhave a balanced scorecard of quantitativeand qualitative performanceobjectives that commit the agenciesinvolved to tangible individual andenterprise outputs and outcomes.And each goal and set of performanceobjectives should be specific,measurable, assignable, realistic andtime limited. Here again, the administrationhas laid a solid foundationfor what we propose: It already poststhe current GPRAMA cross-agencypolicy and management goals on thePerformance.gov website.Many experts we consulted arguedthat the president’s budgetalready serves as the primary blueprintfor administration priorities,eliminating the need for a strategicenterprise performance plan. However,the budget is and always willbe organized by department andagency—in other words, accordingto the government’s stovepipes—anddoesn’t effectively communicatepresidential priorities to stakeholders.Agency-specific performanceplans won’t do the trick, either,though they have matured duringthe two decades since GPRA becamelaw. Neither addresses cross-agencymissions and functions and thereforecannot substitute for an enterpriseperformance plan focusing onmatters requiring collective agencyactivity, and clarifying each actor’srole in the achievement of the goals.This approach will begin to addressthe fragmentation, overlap and duplicationof federal programs and activitiesand, more importantly, serveas a blueprint for more effectivecross-agency collaboration on thosechallenges that are truly enterprisein nature.The strategic enterprise performanceplan must be owned bythe president and the Cabinet, withthe specifics of its development andimplementation a natural job for thePresident’s Management Council(PMC). And as a public expressionof commitment, the enterprise planshould be included in the president’sannual budget submission. Inthe budget, the enterprise performanceplan will orient the executivebranch, Congress and the public toan approach that better connectsagency and government-wide coststo enterprise results.The PMC, chaired by OMB’sdeputy director for management,comprises the chief operating officersof the executive departmentsand agencies (typically deputy secretariesand deputy administrators),plus the heads of central managementagencies, such as the Office ofPersonnel Management (OPM) andthe General Services Administration(GSA). First established in theClinton administration, the PMCtraditionally has served as a coordinatingbody, undertaking relativelyfew government-wide initiatives.It works with other councils,such as the Chief Financial OfficersCouncil and the Performance ImprovementCouncil, and overseesthe President’s Management AdvisoryBoard, a group of private-sectorchief executive officers appointed bythe president to recommend strategiesfor implementing best businesspractices in government.The time has come for the PMCto take more visible charge of the enterprise.It is ideally suited to developthe enterprise performance plan, supportedby staff, and to propose its goals,outcomes and timetables to the Cabinetand, ultimately, to the president,for ratification and endorsement.10 PARTNERSHIP FOR PUBLIC SERVICE | BOOZ ALLEN HAMILTON
“The strategic enterpriseperformance plan must beowned by the presidentand the Cabinet, with thespecifics of its developmentand implementation a naturaljob for the President’sManagement Council.In addition, the PMC must playa central role in the plan’s execution.It must hold officials, includingsome in its own ranks, accountablefor turning the various componentsinto reality through regular and rigorousperformance reviews for eachcross-agency priority, mission andmanagement function. Today agenciescontributing to the president’scross-agency priority goals are primarilyfocused on their own programsand initiatives. The plan, withthe PMC as the executing entity, canbring an enterprise focus.By taking this approach, theWhite House, the PMC and OMBwill send an unmistakable signalthat interagency collaboration onenterprise goals must become standardoperating procedure and thatagencies will be held accountablefor acting in the interests of the largerfederal enterprise. What’s neededis complete buy-in from top federalpolitical and career leadership, notjust a directive from the managementwing of OMB. •STRATEGY 2BUILD PORTFOLIOS OF PROGRAMSALIGNED AGAINST THEENTERPRISE PLAN’S GOALS”The PMC’s strategic enterprise performanceplan must align and integrateall of the programs that contributeto a particular goal, taking aportfolio approach to that alignment.Such an approach forces a holisticview of the goal’s constituent programsand their associated resources.Thus, the portfolio approach willunify the efforts of all the agenciesthat own those programs.This involves more than justinventorying the contributing programs,as is being done today witheach of the administration’s crossagencypriority goals. A portfolioapproach to each enterprise goalshould take those inventories to thenext level, setting the stage for trueintegration. The relative resource investments,risks and results of eachof the various programs in a portfolioshould be considered and analyzedtogether, and compared in terms oftheir respective contribution to theenterprise goal and its qualitativeand quantitative outcome measures.Each portfolio should spell out thecommon responsibilities of theagencies and departments involvedand include the personnel and otherresources needed to achieve the outcomesof the enterprise goal. Someprograms will be more costly thanothers, but their individual resultsmay contribute more to the largergoal. Other programs may be moreefficient, achieving better value forthe dollar, but their impact on thelarger goal may be far less apparent.The portfolio approach will illuminatethe strengths and weaknessesof existing programs andidentify duplication as well as gaps.Portfolios of programs, not individualprograms, will become the organizationalapproach to collectivelyachieve enterprise results.The state of Maryland is usingthis approach to tackle the goalof reducing pollution in the ChesapeakeBay, an effort that involves responsibilitiesfrom multiple departments,agencies and programs. Thetasks, roles, accomplishments andshortcomings of each of the agenciesand programs are grouped togetheron Maryland BayStat, a website thatprovides for the assessment, coordinationand reporting of the restorationeffort. Each month, the governorand the various departmentaland agency heads meet to assessprogress and chart their next steps.For a portfolio-based approachto be effective, the officials who arebeing held accountable for achievingenterprise goals must be able andwilling to independently assess theprograms and resources available toBUILDING THE ENTERPRISE 11
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Page 29 and 30: APPENDIX BCONTRIBUTORSAdmiral Thad
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