Farm Production and Conservation Mission Area USDA Financial

Farm Production and Conservation Mission Area USDA, Financial Management Training Event Margo E. Erny, CFO FPAC May 21, 2018

What is FPAC? The Farm Production and Conservation (FPAC) Mission Area delivers farm production, insurance, and conservation programs that support and strengthen the economic productivity of U. S. agriculture, ensure an abundant food supply, and improve the health of the nation’s agriculture lands and natural resources. Farm Service Agency Natural Resources Conservation Service Internal Use Only – Not for Distribution Risk Management Agency FPAC Business Center 2

What is FPAC’s Geographic Presence? FPAC has programs in every county and has over 3, 100 customer-facing offices. Employees are geographically dispersed in order to help producers with their safety net needs and enable farmers, ranchers, and forest managers to implement locally-led, voluntary efforts that yield optimal conservation outcomes that sustain the natural resources, improve production, and enhance economic returns. Internal Use Only – Not for Distribution 3

How has the USDA organizational structure changed Former USDA Organizational Structure Food Nutrition and Consumer Services Food Safety and Inspection Service Marketing and Regulatory Programs Office of the Secretary Farm and Foreign Agriculture Service Natural Resources and Environment New USDA Organizational Structure Office of the Secretary Food Safety and Inspection Service Farm Production and Conservation Food Nutrition and Consumer Services Marketing and Regulatory Programs Internal Use Only – Not for Distribution Research, Education, and Economics Rural Development Natural Resources and Environment Research, Education, and Economics Trade 4

FPAC Business Center

What is the FPAC Business Center? The FPAC Business Center (FBC) is a “one-stop shop” for the FPAC agencies to obtain mission support services. Consolidating these services will streamline processes, improve mission support delivery, and allow FPAC agency staff to focus on continuing to provide best-in-class customer service and program delivery. 15 1, 750 22, 000 Mission Support Functional Areas Estimated Number of Employees transitioning to the FBC Estimated Number of FPAC Employees Served by the FBC Internal Use Only – Not for Distribution 6 6

What areas comprise the FBC and who is the leadership team? The Secretary’s Memorandum authorized the Business Center on November 14, 2017, to provide Mission Area-wide enterprise solutions for information technology, financial management, human resources, procurement, property management, and other business and administrative processes. Brian Garner, Civil Rights and EEO Organizational structure as of 5. 15. 2018 Bill Northey Under Secretary, Farm Production & Conservation Legend Position Officially Filled Robert Stephenson Chief Operating Officer (COO) and Executive Vice President (CCC) Thomas Christensen Deputy COO for Business Services Jeffrey Machelski Budget Margo Erny Financial Management Geno Bulzomi Grants and Agreements Darren Ash Information Technology Melissa Drummond Human Resources Robert Haughton Management Services Other leaders in acting role *Alternating leadership role Joy Harwood, Deputy COO for Enterprise Services and Secretary (CCC) Leon Brooks/Ken Hill/Perry Thompson* Performance, Accountability, and Risk David Weschler Homeland Security Kim Graham Customer Experience John Shea//Kaveh Sadeghzadeh* External Affairs Joy Harwood Economic and Policy Analysis Stephen Schaefer Acquisition and Procurement Nell Fuller Environmental Activities Legislative Affairs Internal Use Only – Not for Distribution Jack Welch Appeals and Litigation Communications (Public Affairs) 7

What is the timeline for FPAC establishment and the FBC Internal Use Only – Not for Distribution 8

What are the FBC achievements to date? Put People First – Our Customers and Employees • • Completion of the Customer Experience Study (JUMP) Initiation of full-service approach to Grants and Agreements Completion of the Phase 1 Workload Analysis (NRCS and FSA), the basis of the Optimally Productive Office study Organizational Baseline of Business Center’s Functions (As-Is) and development of Business Case for each function Modernize The Way We Do Business • • • Roll-out of Farmers. gov Implementation of the FPAC Portal and Share. Point Conservation Desktop (CD) Replacing Conservation Toolkit Implementation of Service. Now modules for administrative services Implementation of ez. Fed. Grants for Grants & Agreements Create a High. Performing and Results. Driven Culture • Implementation of the FPAC Governance Structure to direct enterprisewide strategic objectives and priorities Initiation of the organizational design process for the FBC Increased standardization of work packages and templates to reduce turnaround time and administrative burden Establishment of common performance expectations across FPAC employees • • • Streamline & Consolidate to Redirect Scarce Funding to Mission Delivery Internal Use Only – Not for Distribution • • • Implementation of the Fleet Optimization Strategy, including 1, 025 vehicle disposals that result in savings of over $3 M/year Establishment of team/data-driven assessment methodology to optimize office staffing and locations Controlling leased office space costs through optimization and returning savings for mission delivery needs 9

What is the FBC reorganization process? Oct 2017 Nov 2017 Dec 2017 Jan 2018 Analyze Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Design Complete In Progress ü Developed baseline understanding of current mission support structures and operating models ü Established working groups to develop proposals for the FBC offices ü Conducted interviews with Agency leaders and mission support office directors ü Identified key considerations and agency requirements for designing the FBC o Developing proposals (business cases) for the 15 FBC functional offices with future state org charts, positions, and core functions Jul 2018 Aug 2018 Sep 2018 FY 2019 & Beyond Transition & Implementation Next Steps o Transition mission support employees to FBC o Begin and continue process improvement activities o Communicate and train employees on conducting business with the FBC offices o Conducting briefings to FPAC leadership groups o Identifying priority process improvement areas Internal Use Only – Not for Distribution 10

Who is involved in designing the FBC • Contract Support 1 2 FPAC leadership and decision makers. Provides guidance, reviews, and approves FBC design process and new organization proposals (business cases). Executive Committee *Includes FPAC, Business Center, and Agency leadership Steering Committee Rotating leads for the FBC function offices. Ensures business needs of respective area are met. *Includes representation from all three agencies 3 Working Groups 4. Customer Review Committee KEY Project Sponsor Executive Committee Member Steering Committee Member Customer Review Committee Member Working Group Member Contract Support * Representation only; number of icons does not indicate recommendation around number of participants per group Contractor support to coordinate and facilitate reorganizatio n. Designated experts to develop FBC offices organizational structure proposals (business cases). Internal Use Only – Not for Distribution Designated representatives to review and support FBC offices’ organizational design proposals (business cases). *Includes representatives for all three agencies – HQ, Regions, and State 11

What is the FBC design proposal (Business Case) review process? • • Ensure compliance of proposed design principles and parameters, and assigned FTE ceiling. Assess structure and grades for organizational consistency, efficiency, and effectiveness. Ensure consistency with budgetary constraints and expectations. Ensure focus on customer service and removing or minimizing burden on customers. Deputy COO • • • Steering Committee Confirm cross-functional dependencies, handoffs, and efficiencies are addressed effectively and consistently. Ensure core and unique business needs of FSA, NRCS, RMA, and BC are met. Identifies best practices that can improve the organization’s efficiency and effectiveness. Customer Review Committee • Executive Committee • Provide feedback on how the proposed design achieves customer service delivery expectations and to identify potential improvements. Ensure handoffs and dependencies between function and customers are addressed effectively and efficiently. • Internal Use Only – Not for Distribution Formally review, modify, and approve the business case before adoption. 12

What are the FBC Design Principles? The Design Principles are the guide rails used in the design phase of the future state organization to help achieve consistency, set priorities, and manage expectations. Governance and Strategy Establish clear expectations and targets for service delivery to ensure the FPAC Business Center and agencies are equal partners in achieving mission objectives Streamline requirements for internal / external customers to obtain services and products Ensure all FPAC Business Center employees and customers have clarity on their roles, responsibilities, and authorities within the new operating environment Structure Ensure the operating model maintains / strengthens proper internal controls, quality assurance, and management oversight Move toward the OPM expectation for supervisor-to-employee ratio Minimize supervisory layers and achieve a flatter organizational structure Workforce Structure new hiring around regional hubs and Washington, D. C. , using NRCS, FSA, and RMA offices where possible, to minimize the virtual approach to position location and gain the benefits and synergy of more inperson interaction Minimize physical duty station moves for existing employees, though major factors (e. g. , budget) may have ramifications As priority service delivery needs are identified, provide workforce solutions to fill those gaps Policies and Processes Standardize terms, definitions, policies, and processes for like functions across agencies Create standard operating procedures that cover the processes from start to completion, address cross-functional hand-offs, and are easy to find, retrieve, and use Develop processes with input from subject matter experts and customers, and with careful attention to efficiency and effectiveness Ensure functional area (e. g. , HR, IT) policies are consistent with statute / regulation and consistent across the FPAC Mission Area, except where unique mission delivery needs drive the demand for services by agency Internal Use Only – Not for Distribution 13

What are the FBC Design Principles? (cont. ) The Design Principles are the guide rails used in the design phase of the future state organization to help achieve consistency, set priorities, and manage expectations. Service Model Improve service through a commitment to continuous improvement based on input from internal / external customers and Business Center employees, and the application of lessons learned Enable and / or expand self-service tools for customers to improve timeliness and reduce workload burden Establish and communicate customer service standards (e. g. , timelines for action) and measure performance against these standards Systems and Technology Provide an online portal for customer transactional business that is scalable over time Integrate Information technology systems across functional areas where processes impact multiple functions Identify the most critical data points to capture in a cross-agency dimension and improve data quality, sharing, and access; develop a common taxonomy for data and standardize data Reduce data entry, streamline data acquisitions, and improve data reporting and retrieval capabilities Work with the business to prioritize business process and system changes Accountability and Performance Benchmark, measure, evaluate, and improve performance in all areas Establish and use individual and organizational measures of performance to improve outcomes and ensure equity of service to all customers Employ transparency in customer service performance to drive continuous improvement and recognize excellence Culture Promote cross-agency understanding of fundamental issues (e. g. , funding differences, unique customers, partnerships, technical expertise) that fostered agency differences in the past Use this deeper understanding to strengthen interconnectedness and emphasize how FPAC work is complementary as we move toward One USDA Instill a customer service mindset in all employees Internal Use Only – Not for Distribution 14

What positions will transition to the FBC? Internal Use Only – Not for Distribution 15

How will FBC employees be transitioned ? • Opportunities to transition to new roles or build new skills • Opportunities to apply for new positions • Opportunities for relocation through We've engaged the Office of Personnel Management (OPM), an objective promotion experienced resource, to help us determine the most appropriate and least disruptive way to do this. We're just kicking off the planning process with OPM and will have a plan to share soon. Internal Use Only – Not for Distribution 16

What does the FPAC reorganization mean for me? I perform Human Resources for FSA at the state level. I am a Soil Conservationist working for NRCS at a field office. Internal Use Only – Not for Distribution 17

How can I be Involved ? Internal Use Only – Not for Distribution 18

For the latest information about FPAC activities: Internal Use Only – Not for Distribution 19