STATEMENT OF MISSION
The mission of the Office of Management and Budget (OMB) is to help the
President in carrying out his constitutional and statutory duties. OMB fulfills
this mission primarily by assisting the President:
(1) To create policy relating to expenditures and
receipts, regulations, information and legislation;
(2) To manage the Executive Branch of the government in the faithful
execution of laws, policies and programs;
(3) By providing the highest quality of analysis and advice on a broad
range of topics.
In assisting the President in managing the Executive Branch, OMB carries
out numerous, OMB-specific, statutory responsibilities, and exercises various
delegated authorities.
GOALS
Four general goals related to OMB's major management and policy
responsibilities are presented in this Strategic Plan.
Goal 1: Recommend to the President spending, regulatory, tax, and
other policies that fulfill the President's policy goals and promote
sustainable economic growth.
Goal 2: Provide management leadership to ensure the faithful
execution of the enacted budget, programs, regulations and policies.
Goal 3: Assist the President by providing analysis and advice on
critical longer-range demographic, fiscal and economic trends, and on other
significant issues.
Goal 4: Improve OMB's means for accomplishing work, including
development and use of its human resources and information systems.
I. Introduction
The Office of Management and Budget has served the Presidency since
1921, when it was established as the Bureau of the Budget. The career staff of
OMB works with policy officials to provide an institutional memory for the
President and competent, objective staff support to help develop and carry out
Presidential policies and programs and implement Executive Branch
responsibilities.
A. OMB's Functions
OMB advocates the appropriate allocation and effective utilization of
government resources. OMB assists the President in the preparation of the
Federal budget and in managing its execution in the departments and agencies.
In helping formulate the President's spending plans, OMB examines the
effectiveness of agency programs, policies, and procedures; assesses competing
funding demands among agencies; recommends funding priorities; and provides
policy options. OMB works to assure that proposed legislation, and agency
testimony, reports, and policies are consistent with Administration policies,
including the President's Budget. Particular emphasis is placed on managing the
coordination and integration of policies for cross-cutting interagency
programs. On behalf of the President, OMB often leads in presenting and
justifying major policies and initiatives related to the budget and government
management before Congress.
OMB has a central role in providing leadership in the development,
oversight and coordination of the Federal government's procurement, financial
management, information, and regulatory policies as well as in their
implementation. OMB helps to promote better program management, strengthen
administrative management, develop better performance measures, and improve
coordination of Executive Branch operations.
OMB carries out responsibilities under more than 200 statutory
provisions, including the Budget and Accounting Act, the Budget Enforcement
Act, the Antideficiency Act, the Balanced Budget Act of 1997, the Impoundment
Control Act, the Line-Item Veto Act, the Government Performance and Results Act
(GPRA), the Chief Financial Officers Act (CFOs Act), the Government Management
Reform Act, the Federal Acquisition Streamlining Act, the Office of Federal
Procurement Policy Act, the Paperwork Reduction Act, the Clinger-Cohen Act, and
the Federal Credit Reform Act.
B. Relation of Annual Performance Goals to General Goals and
Objectives
Selective descriptions of the performance goals and indicators that OMB
expects to include in its annual performance plan are displayed for each of the
four general goals in Part II of this strategic plan. Annual performance goals
will be used in assessing the achievement of the general goals and objectives.
Frequently, policy issues that OMB addresses cannot be forecast in
advance. Nevertheless, judgments can be made about the performance of some of
OMB's work using measures such as the timeliness of its products, the degree to
which specific goals are achieved, and its role in the formulation and
discussion of major Administration policies and issues.
Several annual performance measures will require OMB to develop baseline
information. While OMB does record certain workload data, the amount and type
of information collected will need to be expanded.
C. Means and Strategies Used in Achieving Goals and Objectives
Means and strategies specific to each general goal are described in Part
II of this plan.
Over the next five years, OMB has assumed essentially stable funding, as
contained in the President's fiscal year 1998 Budget. Most of OMB's funding is
used to pay staff salaries and benefits, and the goals and objectives are
premised on future OMB staffing that corresponds to present levels. The
expertise and experience of OMB's staff is crucial to dealing with the broad
array of major issues that have to be addressed, many on very short time lines,
and to providing leadership for the development of policy and the improvement
of management across the Executive Branch. OMB's resources are also used for
information technology, which not only assists OMB staff to do its work in
support of the President's Budget and many other endeavors, but also helps to
provide the Congress with timely, accurate, coordinated information.
OMB uses many strategies to achieve its goals and objectives. The entire
budget process, with its instructions, hearings, reviews, budget drafting, and
justifications drives the development and coordination of policy; examines
efficiency and effectiveness in order to improve programs; allocates resources
in accord with Presidential priorities; and presents the President's program.
The legislative and regulatory review processes likewise helps to sharpen and
coordinate policies. OMB has many authorities to require and define the
budgetary, performance, accounting, and other information that agencies must
develop, the systems they use to keep and share it, and the analyses they
should undertake.
OMB has other authorities to improve, by providing guidance and other
means, the financial, procurement, grant, and other management functions of the
Executive Branch. OMB staff is expected to provide leadership for and to be
catalysts within interagency groups, including the President's Management
Council, the Chief Financial Officers Council, the Budget Officers Advisory
Council, the Chief Information Officers (CIO) Council, and other professional
and programmatic groups. (See illustrative list at Appendix 2.)
OMB works cooperatively with the Congress and with congressional
agencies such as the Congressional Budget Office and the General Accounting
Office (GAO). OMB also works continuously with the agencies on a wide variety
of policy development, budget, coordination and management issues. This contact
occurs through formal Councils, informal working groups and individual meetings
and conversations.
OMB does not operate programs, make grants or transfers, extend credit
or insurance, collect revenues, or benefit from tax expenditures. OMB issues
very few regulations.
The OMB annual performance plan will provide more information linking
annual performance goals to OMB's overall goals and objectives. This plan will
be consistent with OMB's internal planning process and will reflect the
information and analyses used in preparing the fiscal year 1999 Budget,
including program, policy, and management initiatives that may emanate from
agency strategic and performance plans.
D. External Factors
A number of external factors, several of which are similar to those
identified by other Federal agencies, can affect OMB's ability to achieve its
goals and objectives. These include: a significant change in future OMB funding
amounts from the assumed levels; enacted legislation that changes the
statutorily-prescribed scope of several of OMB's functions; or changes in the
respective policy or analytic responsibilities of various offices within the
Executive Office of the President (EXOP). Particular external factors that
could affect specific OMB goals and objectives are described in Part II of this
plan.
E. Program Evaluation
In the course of drafting the plan, OMB reviewed and considered several
analyses or studies of OMB's organization, work environment and processes, and
implementation of several statutes. These analyses or studies were prepared
both by OMB and by other parties, such as GAO.
OMB does not operate programs and a future determination of whether the
general goals and objectives in this strategic plan were achieved will not
require a program evaluation as such, and no program evaluations are scheduled.
However, OMB will continue to prepare specific analyses or studies of its
operational processes, organizational structure, and workforce utilization and
effectiveness. OMB expects that these studies will be complemented by reviews
of particular facets of OMB operations by outside parties, such as GAO.
II. General Goals and Objectives
Four general goals and 16 objectives related to OMB's major management
and policy responsibilities are presented in this part of the plan.
The first goal focuses on OMB's assistance to the President in
developing policies that will contribute to the fiscal strength of the Federal
Government and the economic health of the Nation. This is reflected every year
in the annual budget process which promotes analysis of options, policy and
program recommendations, and resource allocation decisions.
All OMB staff are involved in assuring effective: management of
programs, execution of statutory responsibilities, and implementation of
policies and regulations in Federal agencies. OMB provides leadership, guidance
and coordination to agencies in developing and administering systems and
processes that promote greater efficiency and enhance managerial performance.
These activities are the subject of goal two.
OMB provides analyses, estimates, projections and advice on a wide array
of longer- range demographic, fiscal, and economic trends, and on other
significant issues that affect the entire government. Goal three describes
these functions.
Finally, to carry out these goals, OMB must attract and retain a high
quality, diverse staff and wisely use its human, financial, and technological
resources. Goal four indicates what actions OMB proposes to take to provide an
attractive and effective workplace environment.
Goal 1. Recommend to the President spending,
regulatory, tax, and other policies that fulfill the President's policy goals
and promote sustainable economic growth.
The annual budget process provides a structure for the analysis and
prioritization of spending, tax and other policies. Much of the work done by
OMB is longer range (see Goal 3) but the results of that work are continuously
reflected in the President's Budget.
Objectives
A. Implement the five-year budget agreement to reach balance by
2002. Follow up in each succeeding year to obtain enactment of tax,
appropriations, and mandatory spending program policies consistent with the
balanced budget agreement.
Relationship to Annual Performance Goals
The ultimate achievement of a balanced budget is not controlled by OMB.
However, OMB's contributions in developing policy to affect this outcome can be
measured. In particular, OMB's role in achieving enactment of a budget that
conforms to the agreement can be assessed. In addition, the President's Budget
contains recommendations for reforming or, where necessary, eliminating less
effective or lower priority programs; and for shifts in resource allocations or
policy changes to meet Presidential priorities more effectively within a
balanced budget framework. Goals based on these recommendations will be
included in the OMB annual performance plan.
Means and Strategies
OMB will work with the Congress to follow up on the Balanced Budget Act
and seek to assure that balance is achieved in 2002 and sustained thereafter.
In particular, OMB will follow up to ensure that: (1) the discretionary caps
and PAYGO limits are not breached; and (2) within those limits, the President's
priorities and policies are protected to the maximum extent possible. OMB's
work will include analyses of the effects of particular tax, appropriation, and
mandatory spending policies, continued enforcement of sound budget concepts,
and cross-cutting efforts to enhance fiscal discipline.
External Factors
Achievement of a balanced budget by 2002 is premised on spending and
revenue projections that are based on economic assumptions for the next five
years. A significant change in economic conditions could affect the ability to
achieve this objective. In addition, Congressional cooperation, through the
enactment of revenue and spending measures that achieve balance by 2002, is
essential.
B. Ensure that the budget documents are timely, accurate and of
high quality. Provide prompt and accurate scoring for legislation that affects
the budget.
Relationship to Annual Performance Goals
This objective lends itself to clear, quantifiable measures of
performance, such as the timeliness and accuracy of budgetary documents and of
the scoring of legislation. OMB currently asks users to comment on the quality
of the budget document.
Means and Strategies
Offices in OMB will continue their well-defined roles in reviewing and
critiquing agency plans and budget requests, making resource allocation
recommendations, producing the budget documents, supporting the budget during
the Congressional budget process, and working to sustain budget concepts.
OMB will propose policy options that meet overall budgetary objectives
and shift resources away from programs which are less effective or important in
order to fund programs which support economic growth or advance Presidential
priorities. OMB will make recommendations to the President for budget requests
to Congress based on critical review of agency planning and budget submissions.
In this context, for example, a significant effort is underway to improve
agency planning for capital projects.
External Factors
While OMB has overall control over the development of the annual budget
documents, and over legislative scoring, its ability to develop the budget
accurately and on time depends to a large extent on the accuracy and timeliness
of agency submissions of technical budget information and the timeliness of
Congressional action on yearly appropriation bills. While OMB should be
expected to detect and correct serious errors in agency submissions, it would
be impossible to prepare an accurate and timely budget if agency submissions
were significantly delayed or of poor quality.
C. Ensure that policies developed and reviewed by OMB are
consistent with the President's fiscal, economic and other policy priorities as
reflected in the budget.
Relationship to Annual Performance Goals
Each annual budget contains a series of new initiatives as well as
descriptions of ongoing programs designed to achieve policy objectives. The
extent to which these initiatives and objectives are achieved and lead to
improved results can be described in both quantitative and qualitative terms.
It will be important to properly characterize OMB's role in the results
achieved.
Means and Strategies
OMB provides fiscal, economic, and other advice to the President on ways
to shape his policy goals and on methods to achieve those goals, with emphasis
on such issues as increasing economic growth by improving fiscal discipline,
assessing whether the benefits of current and proposed government programs
outweigh costs, and increasing the efficiency of government operations. OMB
also reviews current and proposed policies, including regulatory policies, to
ensure that they are consistent with statutory principles and the fiscal,
economic, regulatory and information policy priorities of the President. As
appropriate, OMB staff will include the impact of policy decisions on growth in
their budget, legislative, and regulatory review issue papers.
External Factors
OMB's ability to achieve this objective will depend to at least some
extent on the other offices in the Executive Office of the President and other
agencies that may have important roles in such policy development.
Goal 2: Provide management leadership to ensure the faithful
execution of the enacted budget, programs, regulations and policies.
Management of the Federal government is a complex process that requires
OMB to provide policy guidance, coordinate activities and assist with
implementation within and across agencies. All organizational units within OMB
are actively involved in the tasks of management: planning, analysis,
organization and direction.
To leverage its own staff capacities, OMB provides leadership to groups
of agency managers who share the work of policy development and identifying and
implementing the means to better manage Federal resources. (For an illustrative
list of these groups see Appendix 2.)
Linking budgetary resource decisions to the management of agency
programs is critical. For example, implementation of new information technology
initiatives requires both thoughtful guidance and proper allocation of budget
resources over the expected development period.
To more effectively link resource allocations and program management,
OMB undertook a major reorganization in 1994. This reorganization, called
OMB2000, placed the responsibility for oversight of program management in OMB's
Resource Management Offices. In their role, the Resource Management Offices
receive support from OMB staff offices; and technical assistance from the three
statutory offices (the Office of Federal Financial Management, the Office of
Federal Procurement Policy, and the Office of Information and Regulatory
Affairs). The statutory offices retain the responsibility for developing and
issuing policy.
Objectives
A. Work within and across agencies to identify solutions to
mission critical problems.
Relationship to Annual Performance Goals
OMB works continuously with the agencies on a range of management
initiatives including identifying major management problems and, in cooperation
with the agency or agencies affected, attempting to find ways of reducing or
eliminating the problems. In each year's budget, major cross-cutting and agency
specific management initiatives will be presented along with approaches to
solving them. OMB's role will be clearly highlighted. These presentations will
serve as one source of information for the OMB annual performance plan.
Means and Strategies
For cross-cutting issues such as credit policy, financial systems
standards, the year 2000 and others, OMB will work closely with agency
representatives, the Congress, the GAO, the National Performance Review and
others inside and outside government to find the best resolution to these
issues. For individual agency problems, general guidance is supplemented with
the sharing of good practices and hands-on assistance in resolving specific
problems.
External Factors
Responsibility for accomplishing this objective largely rests with
agency managers, who must actively and effectively carry out both
agency-specific and cross-cutting management initiatives.
B. In carrying out the Government Performance and Results Act:
ensure that agency performance plans are fully integrated into the budget
process; prepare a government-wide performance plan that presents performance
goals on a functional basis and includes performance information for program
and policy initiatives in the budget; complete the performance budgeting pilot
projects; and, ensure that agency program performance reports are coordinated
with the agency accountability reports prepared under the Government Management
Reform Act.
Relationship to Annual Performance Goals
Prospective measures include: the extent that performance information
was available to be used in making budget decisions; the extent that the
government-wide performance plan presentation is consistent with the format and
content specification in the objective; the meeting of milestone dates for
designating performance budget pilot projects, preparing the required
alternative presentation in the President's budget, and transmittal of the OMB
report to Congress; and the issuance of guidance covering preparation and
submission of an integrated program performance and accountability report.
Means and Strategies
OMB will use its processes for budget formulation to promote integration
of the performance plans with the budget process. A function-based presentation
of performance goals will provide a context for cross-cutting analyses and
presentations. OMB must consult with potential pilot project agencies to
identify candidate pilots, and develop adequate selection criteria that will
allow pilots to be designated and proceed. The evolving relationship of the
program performance and accountability reports will be discussed with the
agencies and Congress.
External Factors
None identified.
C. Achieve savings, improve quality and increase customer
satisfaction in agency procurements.
Relationship to Annual Performance Goals
OMB's long term goal is a Federal procurement system comparable to those
of high performing commercial enterprises. OMB will identify annual goals that
gauge OMB's success in promoting establishment of a high performing procurement
system in which agencies pay less for products and services, increase the value
received for the dollars spent, and ultimately improve the support acquisition
provides to government programs.
Means and Strategies
To achieve this goal, OMB will work with agencies to facilitate and
promote agency use of commercial buying strategies and practices. In doing so,
OMB will work with the National Performance Review in maximizing the use of
discretion and business judgment by contracting officials and minimizing
rule-based procedures to permit negotiation of the most advantageous
agreements. OMB will also collaborate with the Federal Acquisition Regulation
(FAR) Council, the Federal Procurement Council, and front-line contracting
professionals to accomplish these goals. Specifically, to increase agency use
of commercial buying strategies and processes, OMB will work with these groups
to secure the discretion under applicable laws and regulations necessary to
employ commercial buying practices and will issue appropriate policy guidance.
For example, in seeking to make consideration of past performance the norm in
source selection, OMB will work with the FAR Council to complete necessary
regulatory revisions and will publish a revised best practices document. In
addition, OMB will encourage and monitor agency progress in adopting reforms
with high potential for improving acquisition. For example, OMB will obtain,
review, and conduct follow-up on agency plans to convert services contracts to
performance-based ones. And to facilitate conversion, OMB will work with
agencies to draft model contract documents.
External Factors
These efforts cannot succeed without the assistance of the agencies. In
particular, the Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration, as members of the FAR
Council and the largest buying and procurement training entities, as well as
other major procuring agencies, have a critical role in institutionalizing
these reforms.
D. Partner with agencies to achieve the goals set forth in each
year's Federal Financial Management Status Report and Five Year Plan,
emphasizing particularly the priority goals relating to financial systems,
audited financial statements and GPRA implementation.
Relationship to Annual Performance Goals
OMB will assist agencies in their efforts to obtain clean audit opinions
on their financial statements (for the 24 agencies subject to the CFOs Act) and
on the government-wide financial statement. As part of the fiscal year 1997
financial statement audits, OMB and the Congress will receive information on
the extent to which agency financial systems comply with the Federal Financial
Management Improvement Act of 1996. As part of the overall effort to integrate
agency systems, OMB will work with the agencies to increase the use of the
multi-purpose application card to make payments for travel, small purchase
transactions and fleet management.
Means and Strategies
To accomplish this objective, OMB will issue policy and guidance to
agencies; offer expert advice to solve problems; help agencies address
cross-cutting issues; and help remove obstacles.
External Factors
Continued progress in systems development for both core and feeder
financial systems in the agencies is essential to meet the objective. This
progress will depend on timely joint development of new systems specifications
and a new approach for procuring these systems. The number of clean audit
opinions is contingent, in part, on OMB, GAO, Treasury, and the agencies
resolving several crosscutting issues in audit policies and procedures both on
an agency-specific and government-wide basis.
E. Maximize social benefits of regulation while minimizing the
costs and burdens of regulation.
Relationship to Annual Performance Goals
OMB conducts comprehensive, timely and objective reviews of regulations,
in particular to assess their benefits and costs, to assure that they
accurately reflect Administration policy, and to assure that they appropriately
carry out statutory requirements.
Means and Strategies
OMB will work to ensure that the quality of data and analyses used by
agencies to make regulatory decisions improves. This will require more focussed
use of agency resources and better planning to ensure adequate time and support
for such data gathering and analysis. OMB will work with agencies to support
further research to develop and improve techniques to measure benefits and
costs. Using its role as central regulatory reviewer, OMB will support more
uniform application of standardized assumptions and methodologies across
regulatory programs and agencies. Similarly, OMB will work with agencies to
develop data and methodologies to determine whether existing regulations need
to be reformed and, if so, how resources should be devoted to such reform. OMB
will develop a pilot baseline measure of net benefits for Federal regulations,
and will work with agencies to increase quantitative measures of net benefits.
OMB will work with agencies in seeking to maximize net benefits for all
regulations reviewed by OMB.
External Factors
Performance depends to a great extent on agency capability, which in
turn is affected by current program demands; by the need in some agencies to
respond quickly to emergencies, such as health, safety or environmental crises;
and Administration and legislative priorities. Also, potential regulatory
reform legislation or oversight activities may affect OMB's ability to achieve
this goal.
F. Improve the performance of Federal programs and the quality
of public access to information and services by promoting sound Federal and
national information, information technology, and statistical policies and
practices.
Relationship to Annual Performance Goals
Although OMB does not control how agencies use information and
technology, OMB can help agencies decrease the number of troubled IT systems,
solve the year 2000 problem, eliminate unnecessary duplication, increase
electronic dissemination of information, improve the Federal statistical
system, and improve information security and privacy.
Means and Strategies
To achieve this objective, OMB creates policy and oversees its
implementation by the agencies. OMB leverages the efforts of interagency groups
such as the Chief Information Officers Council to improve the quality of
policy, increase its adoption, share best practices, and reduce duplication of
effort. For example, OMB developed reporting requirements to measure agency
year 2000 progress in consultation with the CIO Council and the Congress. These
reports are being used as a management tool by the agencies, OMB and the
Congress to assure that all mission-critical Federal systems are year 2000
compliant by December 31, 1999.
External Factors
Performance depends to a great extent on agency capability. Policy
changes in turn are subject to the astonishing speed with which technology is
advancing in the information technology area.
G. Conduct an effective interagency legislative and executive
order coordination and clearance process.
Relationship to Annual Performance Goals
Two traditional and long-standing OMB functions are to coordinate the
interagency review and clearance for submission to Congress of agencies'
legislative proposals, testimony, and views letters on legislation, and to
coordinate the interagency review and clearance of draft executive orders for
submission to the President.
Means and Strategies
OMB strives to ensure that the views of all concerned agencies are taken
into account and addressed in communications to Congress on legislation and
that these communications reflect Administration policies accurately. OMB also
strives to ensure that the views of all concerned agencies are taken into
account and addressed in draft executive orders that are submitted to the
President for consideration. OMB will continue to work cooperatively with
Executive branch agencies to manage effectively functioning interagency
legislative and executive order coordination and clearance processes.
External Factors
The primary external factor is the cooperation of agencies in the
interagency legislative and executive order coordination and clearance
processes and allocation of appropriate resources by the agencies to these
activities.
Goal 3: Assist the President by providing analysis and advice on
critical longer-range demographic, fiscal and economic trends, and on other
significant issues.
OMB provides the President with analysis and advice on long range
demographic, fiscal and economic trends and other issues. OMB maintains
expertise across a broad range of programs, policies and economic issues and
uses a variety of analytical tools, including macroeconomic analysis and
cost-benefit analysis.
Objectives
A. Provide accurate and timely assessments of the financial
condition of the Federal Government.
Relationship to Annual Performance Goals
OMB will continue to publish with the President's Budget annual analyses
of how the Government's and the Nation's financial condition have changed and
may change in the future as a result of the Government's operations. These
analyses may be judged by the comprehensiveness of the conceptual framework,
the quality of the data, the clarity of the assumptions on which the
projections depend, and the usefulness to decision-makers of the results.
Means and Strategies
Providing assessments of the financial condition of the Federal
Government has both management and analytic components. In addition to its work
on agency and government-wide financial statements, OMB also provides analyses
of aspects of the financial condition of the Government, and prepares and
publishes long-range estimates that present the effects of various demographic,
economic, and other assumptions on the Federal budget.
External Factors
Assessments of the financial condition of the Federal Government will
depend greatly on data supplied by individual Federal agencies, and generally
the assessment can only be as accurate as the data supplied. In addition, OMB
depends on other outside information, and the accuracy of this information can
influence the accuracy of the OMB assessment.
B. Develop and present accurate long-range
demographic, fiscal and economic trends each year in coordination with
the Treasury and the Council of Economic Advisors (CEA).
Relationship to Annual Performance Goals
The accuracy of economic and technical assumptions is measurable through
comparison to actual economic data. A difficulty with such measurement is the
time lag that occurs between the development of the assumption and the
availability of data with which to measure its accuracy. For example, it may be
a number of years before the accuracy of default rate assumptions for
longer-term loans can be measured.
Means and Strategies
The "Troika" consultation with Treasury and CEA, which develops the
major economic assumptions for the President's Budget, is based on analysis of
the historical trends and relationships among economic indicators, assisted by
a macroeconomic model. However, considerable judgement is required to assess
incomplete data, and to identify changes and discontinuities in economic
relationships. Technical assumptions for the programs are made by the
responsible agencies, with OMB exercising some quality control. Because of the
nature of government programs, many of these assumptions are extremely
difficult to estimate; in these cases, the strategy is experimentation with
alternative methods and specifications with a goal of improving the estimates
over time.
External Factors
The economic and technical assumptions on which the Budget is based
represent the Administration's estimates of what is most likely to occur if the
President's policies are enacted and implemented. Thus, they may not match the
"actual" data if some of the President's policies are not enacted and
implemented, if understanding of the effects of policies or the underlying
relationships is less than perfect, or if unexpected events occur. Economic
assumptions are affected by the quality of economic statistics, such as the
measurement of productivity and prices. Technical assumptions are affected by
the quality of agencies' program data, their accessibility, and the quality of
analysis of the factors that influence them.
C. Complete objective and high-quality analyses on priority
policy issues, and disseminate the results to the President and/or other
appropriate policy officials in the Executive Office of the President.
Relationship to Annual Performance Goals
Neutral, dispassionate analysis of programs is among the most
fundamental functions of OMB. Perhaps more than any other function, this is,
and has been, the way OMB can best serve the President. While final
recommendations will and must consider other factors as well, OMB has
historically performed this type of analysis. Analysis can be essentially of
two types: (1) analysis of programs in preparation for events (appropriating or
authorizing legislation) that can be readily identified well in advance, or (2)
analysis of fast breaking issues or problems (such as the desired response to a
natural disaster). Providing judgments informed by analysis unfettered by
biases others may bring to the matter is a goal to be sought consistently by
OMB.
Means and Strategies
During annual planning processes and throughout each year, OMB
identifies policy issues appropriate for analysis. Some of those issues will be
for purely internal OMB consumption; some of those issues will be for
consumption outside OMB, up to and including the President. Some of the those
issues will be prepared by individual OMB staff, and some will be prepared by
OMB teams, possibly in combination with other agency staff or in consultation
with other EXOP agencies. OMB involvement in policy analysis and advice may
include participation in interagency meetings on Administration policy
development, both short- and long-range, or other discussions among policy
officials. In most cases, OMB analysis of issues will include discussions of
the advantages and disadvantages of a variety of policy choices, and the
implications and tradeoffs among policy choices.
External Factors
External factors that could affect achievement of this objective, in
part, include: the need for cooperation of other participating agencies;
and the extent to which other key actors can provide the primary data and
analyses necessary as inputs to OMB analyses. Also, longer range analysis of
programs can be interrupted by shorter range, more immediate fiscal crises
and/or "firefighting" assignments.
Goal 4: Improve OMB's means for accomplishing
work, including development and use of its human resources and information
systems.
Objectives
A. Recruit, develop, and retain a high quality and diverse
staff.
Relationship to Annual Performance Goals
The following performance measures may be used for this objective:
differences between current staff and recruited staff with respect to gender,
ethnicity, and disability (reporting will be against a baseline, no
quantitative goals will be set); turnover rate among entry level staff compared
with their government cohort; and increase in opportunities for staff access to
mentors.
Means and Strategies
To accomplish this objective, OMB will: develop and carry out a plan for
improving the effectiveness of on-campus and mid level recruiting; explore
options for creating a work place environment that recognizes individual needs
within workload and resource constraints; and continue and enhance mentorship
programs, encouraging highly qualified senior staff members to serve as
mentors.
External Factors
The training and experience of OMB staff make them highly attractive in
the job market. Despite the importance of the work done at OMB and the high
value placed on it, a substantial upward change in the current private-public
sector pay differential for OMB staff with highly valued analytic and
knowledge-based skills in certain high-demand business areas, e.g., health care
economics, could offset OMB's initiatives to improve retention.
B. Increase the opportunities for all staff to enhance their
skills and capability.
Relationship to Annual Performance
Goals
Among the performance goals OMB may use to record achievement of this
objective are: the percentage of OMB staff during the fiscal year in rotational
assignments (internal and external), or on temporary assignment or detail
elsewhere; each division develops and carries out a staff training and
development plan; training and development opportunities are available to all
staff; and the performance appraisal and awards process for all staff is
strengthened and enhanced.
Means and Strategies
To accomplish this objective, OMB will: increase the number of staff
participating in both internal and external rotational opportunities;
continue to assign an "on the job" coach for the initial year of each
new employee; encourage managers and staff to develop and fulfill individual
development plans, especially for new hires.
External Factors
None identified.
C. Leverage information technology resources to aid OMB staff in
fulfilling their mission requirements.
Relationship to Annual Performance Goals
Among the performance goals OMB may use to record achievement of this
objective are: an increase in the number and types of information resources
available to the OMB staff; improved methods of accessing information and
information processes to make information more readily available; ensure that
the computer systems used in support of OMB's responsibilities for budget
decision making, preparation and execution keep pace with technological change
and evolving budgeting requirements; and improved methods for communicating
information internally and between OMB and other agencies.
Means and Strategies
Examples of activities that have been or will be undertaken to achieve
this objective include: placing official statements of policy on the external
Homepage; broadening the content and facilitating the use of OMB's internal
Homepage; improving the tracking of controlled correspondence; automating
routinely used forms; making legislation-related information and statistics and
status reports on paperwork reviews and regulatory reviews available
electronically to OMB staff; using electronic means to deliver to OMB staff
current economic data, economic and technical assumptions, analytical databases
and models, staff analyses of short-and-long term economic and fiscal
conditions, and other cross-cutting analyses; moving budget systems over the
next few years from an outdated mainframe computer to distributed technology;
improving electronic communications between OMB and the agencies; and
facilitating "Work from Home" via personal computers.
External Factors
Implementation of each of the above depends heavily on the availability
of resources, not only in OMB but also in the Office of Administration (OA) in
the Executive Office of the President. Progress is dependent not only on
assistance from OA, but also on further refinements in the products which are
available from vendors. Agency cooperation is needed to make progress in moving
to the electronic transfer of information.
Appendix 1
Plan Development
This section provides a brief description of the process used by OMB to
develop its strategic plan.
Steering Group: In the early summer of 1995, a
"Steering Group" (SG) was established within OMB to oversee the process of
preparing an OMB strategic plan. Chaired by OMB's Deputy Director for
Management (DDM), the SG was composed of about a dozen staff from various units
in OMB, and assured that all OMB staff had an opportunity to participate in the
evolution of the plan.
First Phase: The first phase of the development of
OMB's plan lasted about a year -- from early in the summer of 1995 to the end
of the summer in 1996. Initially the SG reviewed a broad range of information
about the development of GPRA, strategic planning techniques, the historical
context of OMB, and experiences with strategic planning in other countries and
agencies.
After reviewing the information and holding a number of discussions, the
SG concluded that a wide-ranging dialogue about OMB's mission, organization,
functions and priorities among senior OMB staff was required in order to
establish the foundation for an effective OMB strategic plan. It was decided
that a two-day, off-site meeting in August 1996 was the best forum for such a
dialogue.
The SG developed the agenda and put together the background materials
for the meeting. A series of four "brown bag" meetings, to which all OMB staff
were invited, was held in July 1996 on "the strategic issues likely to confront
OMB in the next decade" as part of the preparation for the August session. A
summary of these discussions was included in the materials provided to those
attending the off-site meeting.
The OMB Strategic Plan Working Session was held on August 15-16. The
participants included almost all OMB policy officials and senior career staff
but there were also a number of other career staff present including branch
chiefs, support staff and examiners/analysts.
Second Phase: This phase lasted from August 1996 until
July 1997. The objective was to produce a draft OMB strategic plan that could
serve as the basis for Congressional consultations and review and comment by
other stakeholders.
Several activities were the focus of this stage of the process:
- Briefing the Director: Franklin D. Raines, the Director of
OMB, was confirmed by the Senate on September 6, 1996. In early fall, the SG
briefed the new Director on the planning process to date and received his views
and guidance on both process and substance. He took an active role in preparing
the Mission Statement and has carefully reviewed the entire plan.
- Producing a Draft Plan: The SG prepared a summary of the
August Working Session, and subsequently produced outlines and then drafts of
an OMB strategic plan. These documents were reviewed and commented on by OMB
staff in an iterative process.
- Operating Plans: In order to meet the needs of the agency's
internal planning process, each office in OMB was asked to prepare an operating
plan covering its activities. The units were asked to prepare their plans in
the context of the draft outline of the OMB strategic plan. The SG then
reviewed the individual plans to assure that there was consistency between the
OMB strategic plan and the operating plans and that they reinforced one
another.
- "Standdown" Day: At the end of February 1997, all OMB units
devoted an entire day to having their staffs discuss two subjects: (1) the
unit's operating plan (then under development); and (2) the draft outline of
the OMB strategic plan (each unit was asked to provide written comments on the
draft).
The various reviews and multiple discussions described above culminated
in a draft plan (dated July 23, 1997) that was used as the basis for
Congressional consultation and stakeholder review. Copies of the draft
strategic plan were provided to the House and Senate Appropriations Committees,
the House Government Reform and Oversight Committee, and the Senate
Governmental Affairs Committee. Copies of the draft plan were also made
available to GAO and the Congressional Research Service (CRS) in the Library of
Congress. Several Congressional consultation meetings were held on the plan.
Copies of the draft plan were also provided to all Cabinet departments,
many independent agencies, and other offices within the Executive Office of the
President. A specific distribution was made to all agency Chief Financial
Officers, Inspectors General, Chief Information Officers and members of the
President's Management Council. In addition, the draft plan was posted on OMB's
website so that the general public could have access to it.
The draft strategic plan was revised significantly as a result of views
expressed during the Congressional consultation meetings, written assessments
prepared by GAO and CRS, and comments from several agencies and public
individuals. The final plan reflects the salient comments received during the
consultation process and a final internal review within OMB.
Third Phase: The operating plans referred to above are
currently being reviewed in the context of the strategic plan to elicit from
them key performance measures which will be used in the development of the OMB
performance plan.
Appendix 2
Illustrative List:
Interagency Working Groups
Accounting and Auditing Policy Committee
Budget Officers Advisory
Council
Chief Financial Officers Council
Chief Information Officers
Council
Electronic Processes Initiatives Committee
Encryption Task
Force
Executive Council on Integrity and Efficiency
Federal Accounting
Standards Advisory Board
Federal Acquisition Regulation Council
Federal
Credit Policy Working Group
Federal Procurement Council
Government
Information Technology Services Board
Information Technology Resources
Board
Interagency Council on Administrative Management
Joint Financial
Management Improvement Program
National Partnership Council
President's
Council on Integrity and Efficiency
President's Management Council
Regulatory Working Group
SBREFA Small Business Panels