PRESIDENTIAL MANAGEMENT INITIATIVES
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP79M00467A003100100008-9
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
11
Document Creation Date:
December 16, 2016
Document Release Date:
May 27, 2005
Sequence Number:
8
Case Number:
Publication Date:
July 27, 1976
Content Type:
MF
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Body:
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EXECUTIVE OFFICE OF THE PRESIDENT
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
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.
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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
August 23, September 3, September 21, or October 21, as the case. may be -- but
some go into fiscal year 1978. However, whatever these specific times for action,
we would appreciate having from you by August 23 an overall plan as to how you
are going about tackling each of the initiatives. Within two weeks of. receipt of:
your initial plan, we will be back to you with such comments and suggestions as
we may have.
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 given. 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.
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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. By September 21, report to OMB on the agency's assessment of its.
situation with respect to A above and the 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 proposed agency
head MBO's for FY 1977 and 1978, as part of the FY 1978 budget process.
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
comments and suggested revisions within 30 days.
F. 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.
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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 (or 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
"Operation Barnacle Removal."
B. By August 23, identify to OMB ten efficiency evaluations -- determined on
a priority basis -- now underway or planned (a) for the period 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
explain why not.
C. Develop in accordance with OMB guidance which will follow, a
management plan (to complement the agency 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.
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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 submit to OMB a tentative plan for reducing paperwork
burden further with timetables through December 31, 1976, FY 1977 and
FY 1978. To the extent possible, each agency should adopt the 5%, 15-
2096 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 often audited by Federal, State and local audit groups.
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A. Contracting Out. To further the objective of maximum reliance on the
private sector in accordance with OMB Circular No. A-76, agencies
should:
1. By August 23, submit to OMB an initial plan for increasing their
reliance on the private sector to carry out overhead or program
functions in accordance with the Circular. Unless very good reasons
are given, each agency will be expected to identify at least five
functions presently performed in-house that will be reviewed from
this standpoint (together with timetables for action). Agencies will
be expected to better these targets, wherever possible.
2. By September 21, review and revise their implementing instructions
and procedures for contracting out to ensure that all in-house
commercial and industrial activities are reviewed and terminated if
not justified as an exception to the contracting out policy. 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
Circular No. A-76 should be installed.
B. Overhead Cost.
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.
2. 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 1976 (as required by OMB Bulletin No. 76-9, as
amended) - to identify areas where greater improvement can be
made.
(b) By September 3, agencies should develop and report to GSA plans
to further reduce travel costs in fiscal year 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.
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3. ADP Practices.
(a) Agencies with substantial ADP investments (i.e., those that
received an OMB allowance letter in February 1976) should
organize a program to:
- 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 agencies should prepare and submit to
OMB a plan describing the specific actions they will accomplish
in each of the above areas. The plan should address both short
and long term action steps. GSA will submit a plan for
increasing the use of "third party" and "plug-to-plug" compatible
ADP rental contracts government-wide.
(c) By September 21, all agencies should submit a progress report
indicating 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) By October 21, 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.
4. 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
21, report to the President on savings that have been or can be
realized.
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5. Reproduction Equipment.
(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
the President on savings that have been or can be realized.
6. 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 Equipment and Usage.
(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.
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- 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. Mailing 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 (VARS.
Provide adequate training for employees to implement the
instructions.
Monitor mail practices to insure that mail is sent by the
most economical means.
- 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.
9. Office and Other Space.
(a) To effect efficiencies in space utilization, agencies should:
- Review present space utilization and assure that per person
square footage of space is kept to a minimum in keeping
with efficient accomplishment of the agencies missions, and
- Submit plans to GSA by August 23.
(b) GSA should rewrite Federal Property Management Regulations to
reflect new space utilization standards and other requirments
growing out of studies and reviews of agencies'space needs. This
should be done by October 21, if possible.
10. Record Storage
(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 ree e~{ ~' ~~~,,- areas
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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.
Position and Classification Management Systematic reexamination of
internal systems, and appropriate corrective action to restrain grade
escalation and to eliminate duplication of work or under-utilization of
personnel.
Productivity Measurement - Improvement of productivity measurement and
extension of such measurements to functions not presently covered, as a means
of judging both managerial and individual staff performance and of improving
productivity.
Employment Ceilings - Adherence to Presidential employment ceilings and
avoidance of congressionally mandated minimum employment levels.
A. 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.
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