Brigadier General John J Kelly Jr United States
Brigadier General John J. Kelly, Jr. , United States Air Force (Ret. ) Deputy Under Secretary for Oceans and Atmosphere NOAA Leadership Seminar 08. 29. 2006
Overview NOAA’s Mission and Vision Leadership Current Environment Challenges How DOC views NOAA Transformation Business Model FY 07 Budget NOAA Leadership: Creating One NOAA Recapitalization Five Tier Labor Relations 2
NOAA’s Mission NOAA Leadership: Creating One NOAA 3
Eye On The Mission “Every business, if it is to succeed, must have a sense of direction and mission, so that no matter what you are doing, you know how you fit in, and that what you are doing is important. ” former IBM CEO Louis Gerstner NOAA Leadership: Creating One NOAA 4
NOAA’s Vision NOAA Leadership: Creating One NOAA 5
Eye On The Vision “Everything you do is for a reason and that reason is contained within the vision. ” Merck & Co chair, president and CEO Raymond Gilmartin NOAA Leadership: Creating One NOAA 6
NOAA Organization NOAA Leadership: Creating One NOAA 7
Fiscal Year 2005 Audit Findings and Recommendations (NFRs) Major Conclusions: Unqualified audit opinion last seven years. Improvement in the number of NFRs. Personal property, Construction Work In Progress, reimbursable agreements and grants recurring issues. NOAA Leadership: Creating One NOAA 8
Fiscal Year 2005 Audit Information Technology Security OIG Evaluation: Good: Security Plans and Risk Assessments Not so Good: Testing FY 06 Activities More Rigorous Testing Authorizing Official review all IT Security Plans NOAA Leadership: Creating One NOAA 9
Transformation to “One NOAA” Holding Company Corporation Ad Hoc Process Subjective Decisions Fact-based Decisions Talk Execution NOAA Leadership: Creating One NOAA 10
NOAA “Business” Model NOAA Leadership: Creating One NOAA 11
Organizational Assessment President’s Management Agenda HUMAN CAPITAL Status l Progress l Union negotiations regarding the multi-tier performance appraisal system continued on schedule. Manager and employee training for the new system began in 3 rd quarter. Completion is expected by September 1 st. COMPETITIVE SOURCING Status l Progress l NOAA completed 3 feasibility studies during 3 rd quarter and plans to complete 5 more during 4 th quarter. FINANCIAL PERFORMANCE Status l Progress l l On track. E-GOVERNMENT Status NOAA needs to continue emphasis on improving certification and accreditation processes and documentation for information technology security, and on meeting negotiated deadlines. BUDGET & PERFORMANCE Status l Progress l NOAA is undergoing PART reviews of OMAO, Navigation Services, and Pacific Salmon (PCSRF) with results expected August 15 th. NOAA also provided OMB proposed efficiency measures for PCSRF, CZMA, NMFS, and Navigation Services, and a marginal cost measure for Navigation Services. R&D INVESTMENT Status l Progress l NOAA solicited proposals for a new cooperative institute for the northern Gulf of Mexico and for renewal of the cooperative institute for the Great Lakes. NOAA plans to complete a final external report on Ecosystem Research and Science Enterprise during the fourth 12 NOAAquarter. Leadership: Creating One NOAA
Organizational Assessment PART SUMMARY Program Year Scor e Ecosystem Research 2005 63 Adequate Weather & related services 2005 76 Moderately Effective NOAA Protected Areas 2004 68 Adequate Climate Research 2004 78 Moderately Effective Coastal Zone Management Act 2003 46 Results Not Demonstrated Navigation Service 2003 83 Moderately Effective Commerce Small Business Innovative Research (SBIR) 2003 27 Results Not Demonstrated National Weather Service 2002 89 Effective Pacific Coastal Salmon Recovery Fund 2002 45 Results Not Demonstrated 2002 55 Adequate (re-PARTed in 2006—score pending) Rating (re-PARTed in 2006—score pending) NOAA Leadership: Creating One NOAA National Marine Fisheries Service 13
Organizational Assessment Funding Summary ($ thousands) Total Funding $4, 189. 5 Estimated Spent $2, 644. 4 +/- Total $1, 545. 1 % of Total Spent 63% NOAA is spending at a rate of 81% of the planned amount, having spent 63% of its FY 2006 budget as of the end of the 3 rd quarter. NOAA Leadership: Creating One NOAA 14
Secretarial FY 2006 Priorities Execute NOAA Elements of the Integrated Earth Observations System Exercise Global Leadership in Ocean and Ecosystem Science, Policy, and Management Complete the Planned 2006 US Climate Change Science Program Actions Ensure Public Safety and Economic Security through Improved Weather and Water Information Advance Navigation and Transportation Continue Implementation of President’s Management Agenda NOAA Leadership: Creating One NOAA 15
NOAA Funding Trends (Constant Dollars in Billions) Total 2. 4 3. 0 3. 1 3. 2 3. 4 3. 5 3. 4 3. 2 2. 8 3. 8 Other 0 0. 2 0. 1 0. 0 0. 1 PAC 0. 6 0. 7 0. 8 0. 9 0. 8 0. 9 ORF 1. 8 2. 1 2. 2 2. 3 2. 4 2. 5 2. 4 2. 2 2. 0 2. 8 NOAA Leadership: Creating One NOAA Data Sources: DOC “Summary of Enacted BA” and “ 2007 Congressional Action” 16
Leadership What do you want us to do, Boss? ! NOAA Leadership: Creating One NOAA 17
Leader’s 7 Essential Behaviors 1. Know your people and your business. 2. Insist on realism. 3. Set clear goals and priorities. 4. Follow through. 5. Reward the doers. 6. Expand people’s capabilities through coaching. 7. Know yourself. NOAA Leadership: Creating One NOAA 18
Life’s Paradoxes Centralized efficiencies vs. decentralized responsiveness Being disciplined vs. being innovative Taking risks vs. avoiding mistakes Knowing the details vs. delegating responsibility Fast decision process vs. correct decisions Respect for the individual vs. criticism NOAA Leadership: Creating One NOAA 19
Performance Measures Understandable and meaningful Organizational culture — achievement important Performance measures at several levels Information guide to action to improve performance NOAA Leadership: Creating One NOAA 20
Strategy … Metrics … Leaders … Actions Metrics Report Rationalize Resources Strategy Decide Mission Goals Implement Strategy Align Effort Manage Accountabilities Manage Processes Stakeholders NOAA Leadership: Creating One NOAA Improve Performance Manage Capabilities 21
Execution Leaders are central to execution. Know yourself. Be engaged in both the “whats and hows. ” Be honest about all realities. Promote ongoing honest dialogue. Create and maintain an execution culture Translate visions and goals into tangible deliverables and actions. NOAA Leadership: Creating One NOAA 22
Execution Put the “right” people in the “right” places. Be involved in selections. Reward the doers. Expand the capabilities through coaching. Put processes and mechanisms in place to effectively operationalize execution. Strategic plan – stretch goals. Strategy reviews. Operating plans. Realistic resources and budgets. NOAA Leadership: Creating One NOAA 23
Keys to Creating “One NOAA” Remove the Stovepipe Culture NOAA Leadership: Creating One NOAA NESDIS NMFS NOS OAR NWS NMAO Improve understanding of how Line/Staff Offices impact/benefit each other 24
Keys to Creating “One NOAA” Improve Communication NOAA Leadership: Creating One NOAA 25
Recapitalization Facilities Construction and Maintenance $788 M shortfall 800 owned and leased facilities Current replacement value of nearly $4 billion Average of NOAA-owned facilities is 25 years More than 5% (23) of NOAA facilities more than 60 years old NOAA Leadership: Creating One NOAA FY 09 -12 POP Requirements 27
Recapitalization Aircraft Replacement $97 M shortfall No funding in current program for new aircraft Average in FY 11 is 30 years Aircraft aging beyond planned service life Aircraft becoming less reliable and increasingly difficult to maintain FY 09 -12 POP Requirements NOAA Leadership: Creating One NOAA 28
Recapitalization Fleet Replacement $169 M shortfall Lack of replacement ships… ages the fleet and technology increases maintenance costs reduces effectiveness FY 09 -12 POP Requirements NOAA Leadership: Creating One NOAA 29
Recapitalization Polar Orbiting Environmental Satellites (POES) $2. 7 B * FY 08 OMB Budget Submission NOAA Leadership: Creating One NOAA 30
Recapitalization Geostationary Orbiting Environmental Satellites (GOES NP, R) $3. 7 B * FY 08 Budget Submission NOAA Leadership: Creating One NOAA 31
Personnel Matters Five Level Performance Management System Component of the PMA— Human Capital Component Many DOC Organizations using the system. Exceptions are NOAA, Census, EDA and Office of IG DOC-wide Oct. 1, 2006 NOAA Leadership: Creating One NOAA Timetable for Implementation: 11/05 – Present: union briefings, negotiations via group effort (OGC/NWS/NMAO/NESDIS) 04/06 – 08/06: training 09/30/06: closeout of two-level system Challenges Employee Acceptance Impact and Implementation Negotiations - Ongoing Training Development of Measures 32
DEMO Employees Currently in DEMO NWS NMFS NOS NESDIS OAR NMAO CO’s Total 51 1975 0 772 697 0 25 3520 0 963 1157 0 32 158 683 2993 51 2938 1157 772 729 158 708 6513 (Includes Vacant FTE) Employees Planned for DEMO Total NOAA Leadership: Creating One NOAA 33
Labor Relations REQUIREMENT FOR ALL NOAA MANAGERS WITH LABOR RELATIONS OBLIGATIONS: BEFORE making any decisions regarding changes in conditions of employment or engaging in discussions with the union and employees regarding prospective changes in your organization, you must FIRST contact your servicing Workforce Management Office to obtain guidance and assistance in communicating with the union and your employees. NOAA Leadership: Creating One NOAA 34
Labor Relations Changes in Working Conditions Four Required Steps Mgmt. decides on the particular change Mgmt. consults with WFMO to determine whether these changes rise to the level of whether notice is required to the union Mgmt. provides notice of change to the union – with WFMO concurrence on substance of notice If the union responds, Mgmt. consults with WFMO on all further correspondence – including the negotiation process NOAA Leadership: Creating One NOAA 35
Labor Relations Types of Working Conditions Personnel policies: Example—Five Level Performance Management System Practices: Example—Overtime Assignments Other Conditions: Example—Operational (Method, processes, and/or technology used by employees to complete their assigned duties. ) Example—Work Related (Work space, breaks, safety) NOAA Leadership: Creating One NOAA 36
What do you want NOAA to look like in 15 years? NOAA Leadership: Creating One NOAA 37
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