May 8, 2001
BULLETIN NO. 01-07
TO THE HEADS AND ACTING HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
SUBJECT: Workforce Planning & Restructuring
Purpose. This Bulletin:
Background. The White House Chief of Staffs January 20th "Hiring Controls" Memorandum stated that in the long term, every agency head will be expected to develop a plan to meet the Presidents goal of reducing management ranks and that OMB would issue guidance on the development of those plans. Additionally, the Directors February 14, 2001 Memorandum "Performance Goals and Management Initiatives for the FY 2002 Budget" directs agencies to include delayering of management levels to streamline organizations as a performance goal in their FY 2002 Budget requests and annual performance plans.
Furthermore, the Presidents FY 2002 Budget announces: "the first priority of the Presidents Government reform initiatives is to make Government citizen-centered. This means ensuring that there is as little distance as possible between the citizens and decision-makers. To shrink the distance between citizens and Cabinet members, the Administration will flatten the Federal hierarchy, reduce the number of layers in the upper echelons of Government, and use workforce planning to help agencies and redistribute higher-level positions to front-line, service-delivery positions that interact with citizens."
Coverage. This Bulletin applies to agencies with more than 100 FTE (see Attachment A). Agencies with fewer than 100 FTE may voluntarily comply.
Required actions. Each covered agency should: provide summary information on its workforce analysis to the agencys OMB representative no later than June 29, 2001; and develop a restructuring plan as part of its FY 2003 budget submission and annual performance plan.
Restructuring to Streamline Organizations. Each agency is asked to prepare a restructuring plan based upon a workforce analysis to make the Government more citizen-centered by, as appropriate:
Each covered agency should prepare a workforce analysis by bureau or organization that, at a minimum:
This analysis will serve as the baseline for the agency-specific restructuring plan. The analysis should be fully consistent with: actions taken by the agency to implement other management reform initiatives, including those addressed in OMB Memorandum M-01-15 making greater use of performance-based contracts, expanding the application of on-line procurement, and expanding A-76 competitions and increasing the accuracy of FAIR Act inventories (see Attachment B); and with the agencys biennial SES allocation request to the Office of Personnel Management (OPM).
Agencies should prepare a summary of its findings that addresses each of the above elements. To the maximum extent possible, data used in the analysis should be consistent with that reported to OPM; any deviations should be noted. In addition to the summary data, agencies should address the following questions:
This information should be provided to the agencys OMB representative no later than June 29, 2001. Agencies may be asked to provide additional information.
Agency-Specific Restructuring Plans
Based on the workforce analysis, agencies should, as a part of the FY 2003 budget submission and annual performance plan, develop a five-year plan to identify the specific organizational changes the agency is proposing to: reduce the number of managers, reduce organizational layers, reduce the time it takes to make decisions, increase the span of control, and redirect positions within the agency to ensure that the largest number of employees possible are in direct service delivery positions that interact with citizens and retrain and/or redeploy employees as part of restructuring efforts. Include in the plan:
OMB and OPM will work closely with agencies to implement the Presidents initiative. In addition to this Bulletin, OPM has tools to help each agency conduct a workforce analysis and is prepared to provide guidance and assistance as needed.
Additional guidance on agency-specific restructuring plans and other aspects of agency budget submissions and annual performance plans will be provided in OMB Circular No. A-11, which will be issued this summer.
Contact. Questions regarding this Bulletin should be directed to the agency's OMB representative. Specific questions on conducting a workforce analysis should be directed to Employment Service, OPM at 202-606-6500.
Mitchell E. Daniels, Jr.
Attachment A, Executive Branch Agencies with more than 100 FTE
Attachment B, Performance Goals and Management Initiatives for the FY 2002