STRATEGY 1DEVELOP AN ENTERPRISEPERFORMANCE PLAN WITHSENIOR-LEVEL COMMITMENTTO DRIVE CROSS-AGENCYGOALS AND MISSIONSNow that <strong>the</strong> administration has piloted<strong>the</strong> initial set of cross-agencypriority goals required by GPRAMA,it is time for <strong>the</strong> president to institutionalize<strong>the</strong> 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 <strong>the</strong> broadarray of missions and functions (including<strong>the</strong> top presidential priorities)that can best be achieved by <strong>the</strong>whole-of-government enterprise. Itwill set outcome- and time-basedgoals for enterprise missions andfunctions. As discussed in strategies2 and 3, it will put <strong>the</strong> necessaryinfrastructure and accountabilitymechanisms in place to increase <strong>the</strong>likelihood those targets are achieved.As noted earlier, this won’t be<strong>the</strong> first time a strategic enterpriseperformance plan has been attempted.The first attempt in 1998under GPRA got good marks fromGAO, but none<strong>the</strong>less failed in partbecause <strong>the</strong>re was no presidentialcommitment and no one was incharge of making sure <strong>the</strong> plan wasimplemented.The plan should be organizedaround enterprise goals to include<strong>the</strong> program and policy priorities of<strong>the</strong> president, such as reducing <strong>the</strong>unemployment rate of veterans. Italso should include enduring missionsand functions, such as assuring<strong>the</strong> safety of <strong>the</strong> nation’s food supply,that are no less important butthat have come to be expected by<strong>the</strong> 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 <strong>the</strong> 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, <strong>the</strong> administrationhas laid a solid foundationfor what we propose: It already posts<strong>the</strong> current GPRAMA cross-agencypolicy and management goals on <strong>the</strong>Performance.gov website.Many experts we consulted arguedthat <strong>the</strong> president’s budgetalready serves as <strong>the</strong> primary blueprintfor administration priorities,eliminating <strong>the</strong> need for a strategicenterprise performance plan. However,<strong>the</strong> budget is and always willbe organized by department andagency—in o<strong>the</strong>r words, accordingto <strong>the</strong> government’s stovepipes—anddoesn’t effectively communicatepresidential priorities to stakeholders.Agency-specific performanceplans won’t do <strong>the</strong> trick, ei<strong>the</strong>r,though <strong>the</strong>y have matured during<strong>the</strong> two decades since GPRA becamelaw. Nei<strong>the</strong>r addresses cross-agencymissions and functions and <strong>the</strong>reforecannot substitute for an enterpriseperformance plan focusing onmatters requiring collective agencyactivity, and clarifying each actor’srole in <strong>the</strong> achievement of <strong>the</strong> goals.This approach will begin to address<strong>the</strong> 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 by<strong>the</strong> president and <strong>the</strong> Cabinet, with<strong>the</strong> specifics of its development andimplementation a natural job for <strong>the</strong>President’s Management Council(PMC). And as a public expressionof commitment, <strong>the</strong> enterprise planshould be included in <strong>the</strong> president’sannual budget submission. In<strong>the</strong> budget, <strong>the</strong> enterprise performanceplan will orient <strong>the</strong> executivebranch, Congress and <strong>the</strong> public toan approach that better connectsagency and government-wide coststo enterprise results.The PMC, chaired by OMB’sdeputy director for management,comprises <strong>the</strong> chief operating officersof <strong>the</strong> executive departmentsand agencies (typically deputy secretariesand deputy administrators),plus <strong>the</strong> heads of central managementagencies, such as <strong>the</strong> Office ofPersonnel Management (OPM) and<strong>the</strong> General Services Administration(GSA). First established in <strong>the</strong>Clinton administration, <strong>the</strong> PMCtraditionally has served as a coordinatingbody, undertaking relativelyfew government-wide initiatives.It works with o<strong>the</strong>r councils,such as <strong>the</strong> Chief Financial OfficersCouncil and <strong>the</strong> Performance ImprovementCouncil, and oversees<strong>the</strong> President’s Management AdvisoryBoard, a group of private-sectorchief executive officers appointed by<strong>the</strong> president to recommend strategiesfor implementing best businesspractices in government.The time has come for <strong>the</strong> PMCto take more visible charge of <strong>the</strong> enterprise.It is ideally suited to develop<strong>the</strong> enterprise performance plan, supportedby staff, and to propose its goals,outcomes and timetables to <strong>the</strong> Cabinetand, ultimately, to <strong>the</strong> president,for ratification and endorsement.10 PARTNERSHIP FOR PUBLIC SERVICE | BOOZ ALLEN HAMILTON
“The strategic enterpriseperformance plan must beowned by <strong>the</strong> presidentand <strong>the</strong> Cabinet, with <strong>the</strong>specifics of its developmentand implementation a naturaljob for <strong>the</strong> President’sManagement Council.In addition, <strong>the</strong> PMC must playa central role in <strong>the</strong> plan’s execution.It must hold officials, includingsome in its own ranks, accountablefor turning <strong>the</strong> various componentsinto reality through regular and rigorousperformance reviews for eachcross-agency priority, mission andmanagement function. Today agenciescontributing to <strong>the</strong> president’scross-agency priority goals are primarilyfocused on <strong>the</strong>ir own programsand initiatives. The plan, with<strong>the</strong> PMC as <strong>the</strong> executing entity, canbring an enterprise focus.By taking this approach, <strong>the</strong>White House, <strong>the</strong> PMC and OMBwill send an unmistakable signalthat interagency collaboration onenterprise goals must become standardoperating procedure and thatagencies will be held accountablefor acting in <strong>the</strong> interests of <strong>the</strong> largerfederal enterprise. What’s neededis complete buy-in from top federalpolitical and career leadership, notjust a directive from <strong>the</strong> managementwing of OMB. •STRATEGY 2BUILD PORTFOLIOS OF PROGRAMSALIGNED AGAINST THEENTERPRISE PLAN’S GOALS”The PMC’s strategic enterprise performanceplan must align and integrateall of <strong>the</strong> programs that contributeto a particular goal, taking aportfolio approach to that alignment.Such an approach forces a holisticview of <strong>the</strong> goal’s constituent programsand <strong>the</strong>ir associated resources.Thus, <strong>the</strong> portfolio approach willunify <strong>the</strong> efforts of all <strong>the</strong> agenciesthat own those programs.This involves more than justinventorying <strong>the</strong> contributing programs,as is being done today wi<strong>the</strong>ach of <strong>the</strong> administration’s crossagencypriority goals. A portfolioapproach to each enterprise goalshould take those inventories to <strong>the</strong>next level, setting <strong>the</strong> stage for trueintegration. The relative resource investments,risks and results of eachof <strong>the</strong> various programs in a portfolioshould be considered and analyzedtoge<strong>the</strong>r, and compared in terms of<strong>the</strong>ir respective contribution to <strong>the</strong>enterprise goal and its qualitativeand quantitative outcome measures.Each portfolio should spell out <strong>the</strong>common responsibilities of <strong>the</strong>agencies and departments involvedand include <strong>the</strong> personnel and o<strong>the</strong>rresources needed to achieve <strong>the</strong> outcomesof <strong>the</strong> enterprise goal. Someprograms will be more costly thano<strong>the</strong>rs, but <strong>the</strong>ir individual resultsmay contribute more to <strong>the</strong> largergoal. O<strong>the</strong>r programs may be moreefficient, achieving better value for<strong>the</strong> dollar, but <strong>the</strong>ir impact on <strong>the</strong>larger goal may be far less apparent.The portfolio approach will illuminate<strong>the</strong> strengths and weaknessesof existing programs andidentify duplication as well as gaps.Portfolios of programs, not individualprograms, will become <strong>the</strong> organizationalapproach to collectivelyachieve enterprise results.The state of Maryland is usingthis approach to tackle <strong>the</strong> goalof reducing pollution in <strong>the</strong> ChesapeakeBay, an effort that involves responsibilitiesfrom multiple departments,agencies and programs. Thetasks, roles, accomplishments andshortcomings of each of <strong>the</strong> agenciesand programs are grouped toge<strong>the</strong>ron Maryland BayStat, a website thatprovides for <strong>the</strong> assessment, coordinationand reporting of <strong>the</strong> restorationeffort. Each month, <strong>the</strong> governorand <strong>the</strong> various departmentaland agency heads meet to assessprogress and chart <strong>the</strong>ir next steps.For a portfolio-based approachto be effective, <strong>the</strong> officials who arebeing held accountable for achievingenterprise goals must be able andwilling to independently assess <strong>the</strong>programs and resources available toBUILDING THE ENTERPRISE 11