This first appeared as an ASPANET On-Line column in July 2002.

 End of the Marking Period:  Grades Are In on President’s Management Scorecard

by John M. Kamensky

 The Office of Management and Budget, as promised, released an updated scorecard on agencies’ standing on the President’s Management Agenda.  In the first scorecard, released in February 2002, the results were a sea of “reds” and a sprinkling of “yellows” with one “green” – given to the National Science Foundation on improving financial management.  The second scorecard was nearly the same – exceptthe National Science Foundation earned a second “green” for citizen-centric e-government.  The scorecard also held a surprise for some – agencies could be scored lower than the previous time.  Two agencies changed from “yellow” to “red.”  By allowing lower grades, OMB is keeping the pressure on agencies to show improvement. 

While there was seemingly little progress, OMB also assessed agencies’ promises to do better, and scored their proposed plans for improvement.  Here, most agencies received a “green.”  However, it was surprising that after six months any agencies would receive a “red,” yet several did.  OMB says a “red” means:  “Initiative is in serious jeopardy.  Unlikely to realize objectives absent significant management intervention.”  OMB highlighted both the Department of Agriculture and the Army Corps of Engineers for not having acceptable plans in place yet.  OMB’s assessment included a bit of helpful advice: “Two critical ingredients for success emerge from early efforts: an integrated strategy, and clear assignment of responsibility for its implementation.”  OMB highlights several agencies that have done just that – the Department of Education and the Small Business Administration.

The OMB supplements its “traffic light” scorecard with an assessment that summarizes progress for each of the five initiatives, then provides a short agency-by-agency assessment.  Here are some highlights of OMB’s assessment of the five main initiatives:

Strategic Management of Human Capital.  OMB highlights the Department of Labor’s recent overhaul of its performance appraisal system and its own internal “human capital scorecard” that assesses internal progress on a quarterly basis.  It also praises the Office of Personnel Management’s leadership on the human capital front, noting that it has developed a model hiring process for senior executives that cut the process from six months to six weeks.

Competitive Sourcing.  This initiative is seen by many as being the most controversial and there are congressional efforts to limit it.  However, OMB claims “We are seeing tangible forward progress in competitive sourcing.”  It notes that the governmentwide process for public-private competition is undergoing an overhaul, based on the results of a congressionally-mandated study led by the Comptroller General that released its recommendations in April.

Improved Financial Performance.  This initiative’s goal is to produce accurate and timely information to support decisionmaking.  To further this goal, OMB is moving the deadline for agency annual financial statements from March 31 (six months after the end of the fiscal year) to November 15 (six weeks after the end of the fiscal year) beginning in 2004.  OMB noted that all agencies met the March 31 deadline.  However, most agencies are doubtful about the new deadline.

Expanded E-Government.  A recent United Nations/ASPA report notes that the US Government is the world leader in e-government based on its achievements over the past year.  OMB recognized significant progress in the 24 cross-agency initiatives it is sponsoring, most notably www.firstgov.gov  and www.govbenefits.gov  .  FirstGov is ranked by Yahoo as being in the top 50 most useful websites, and GovBenefits gets 50,000 visitors per week.

Budget and Performance Integration.  OMB did not single out any agencies for their efforts on budget and performance integration.  However, it did add to the three “yellows” on the original OMB scorecard from February by adding the Social Security Administration.  OMB also described its new assessment, the Program Assessment Rating Tool, and how the Chief Financial Officers Council has developed “Getting to Green” guidance to help their member agencies.  This has contributed to significant levels of increased activity in individual agencies.

The OMB assessment also reviews the progress of some agency-specific priorities, such as improved military housing, and the right-sizing of the US overseas presence.  But the most significant point is that OMB has in fact kept score and kept the pressure on agencies.  With this sustained emphasis, more agencies are beginning to realize that the Bush Administration is committed to what the President has said, that he intends to “make progress, to achieve results and to leave a record of excellence.”

OMB Director, Mitch Daniels, according to Government Executive magazine, intends to ensure the President is listened to.  He said, “There will be economic repercussions.  Programs doing well will be reinforced.  Programs that are failing will see their resources shifted somewhere else.”

###