NSF Business Operations Advisory Committee Meeting NSF Business
NSF Business & Operations Advisory Committee Meeting NSF Business Analysis Project Status Arlington, VA October 22, 2003 This document is confidential and has been developed by Booz Allen Hamilton solely for the use and information of the client to whom it is addressed NSF BUSINESS ANALYSIS
Table of Contents 4 Project Overview 4 Organizational Context and Case for Change 4 Key Findings and Recommendations – Business Processes – Tools and Technologies – Human Capital – Business Framework Assessment 4 Next Steps NSF BUSINESS ANALYSIS
The Business Analysis project is designed to enhance NSF’s position in leading the advancement of U. S. science and engineering research and education 4 The Business Analysis project is driving improvements in key areas* – Business Processes – effective, efficient, strategically aligned business processes that integrate and capitalize on the agency’s human capital and technology resources – Tools and Technologies – flexible, reliable, state-of-the-art tools and technologies designed to support the agency’s mission, business processes, staff and customers – Human Capital – a diverse, agile, results-oriented team of NSF knowledge workers committed to enabling the agency’s mission and to expanding their capabilities 4 The Business Analysis project is addressing NSF’s growing requirements and is determining if NSF should … – Maintain status quo – Make incremental improvements – Fundamentally change its core and supporting business processes * Identified in the NSF Administration and Management (A&M) Strategic Plan, April, 2002 NSF BUSINESS ANALYSIS 2
The approach will result in an integrated “roadmap” for NSF’s future success Completed Ongoing Task 2: Business Framework Assessment -Business Context -Stakeholder Analysis -Visioning Sessions -Evaluation Criteria Gap Analysis Task 4: NSF Business Process Analysis/ Plan Recommended Actions Inputs: - FTE’s - Funding - Strategic Direction Task 3: NSF Current Environment Assessment Overall Performance Inputs: - 1, 300 FTEs - $4. 8 B Funding - Strategic Direction Business Process Review/Award Grants, Manage Awards, Oversee Large Infrastructure Projects Human Capital - Outputs: 10, 000 grants managed - Outcomes: results of research Reviewing/ awarding increasingly complex, multidisciplinary grants (against Process Scenarios) - Outputs: >>10, 000 grants managed ($10 B +) - Outcomes: results of research Business Process Scenarios Task 5: Human Capital Management Plan Technologies and Tools Task 6: Technologies and Tools Enterprise Architecture & Plan Task 1: Project Plan NSF BUSINESS ANALYSIS 3
The Business Analysis project is providing findings and recommendations to NSF senior leadership NSF Senior Leadership: § Director/Deputy Director § Assistant Directors § NSB Committee on Strategy and Budget § Business & Operations Advisory Committee (BOAC) § Senior Management Integration Group (SMIG) § Advisory Committee for GPRA Performance Assessment (ACGPRA) § Management Control Committee NSF Senior Leadership Business Analysis Steering Committee (BASC) Tom Miller (PM) NSF Human Capital Team Marilyn Dickman Human Capital Team Dr. Lori Zukin Team Lead Human Capital Subject Matter Experts NSF Business Process Team Altie Metcalf Business Processes Team David Tim Beaupre Koch Team Lead Business Processes Subject Matter Experts Joe Burt (COTR) Business Analysis Steering Committee (BASC): § Machi Dilworth (BIO/DBI) § Andrea Norris (IRM/DIS) § Altie Metcalf (OPP/OD) § Craig Robinson (BFA/BD) § Martha Rubenstein (BFA/BD) § Debbie Crawford (CISE/OAD) § George Strawn (IRM/DIS) § Marilyn Dickman (IRM/HRM) § John Yellen (SBE/BCS) § Deborah Young (ENG) NSF Tools and Technology Team Andrea Norris Technologies Information Technology & Tools Team Matt Bill De. Salvo Newman Team Lead Quality Assurance Review Board Information Technologies Technology & Tools Subject Matter Experts Jack Mayer Abe Zwany Kathleen Dyer Herbert Mac. Arthur Cheryl Thorpe Booz Allen Project Team Includes: § Technical Team § Project Management § Quality Assurance Review Board NSF BUSINESS ANALYSIS 4
Projected Task Deliverables through September 2003 Deliverables Sep 03 • Project Plan • Communications Plan Sep 03 • Business Framework Sep 03 • Current (Baseline) Assessment Environment • Business Process and Plan Delivered Early • Human Capital Mgt Plan • IT Implementation Plan & Enterprise Architecture • Initial and Final Report NSF BUSINESS ANALYSIS 5
NSF Business Analysis is transitioning from documenting the current environment to developing future scenarios based on findings and recommendations contained in this report 09/30/03 Start Date: 6/26/02 Monthly Status Reports, Reports Interim and Project Analysis, Management and Business Controls Integration 1. Project Plan 1. (Quarterly as needed updates) Project or Plan 2. Business Framework 3. Current Environment 4. Business Process Analysis and Plan 4. Business Analysis Human. Capital Management Plan 5. 5. Human Plan 6. IT Implementation & Enterprise Architecture Final Report 7. Final Report FY 2002 FY 2003 FY 2004 FY 2005 End Date: 9/30/05 NSF BUSINESS ANALYSIS 6
Table of Contents 4 Project Background 4 Organizational Context and Case for Change 4 Key Findings and Recommendations – Business Processes – Tools and Technologies – Human Capital – Business Framework Assessment 4 Next Steps NSF BUSINESS ANALYSIS
NSF interacts within a complex environment consisting of public, private and non-profit sector partners NSF’s STAKEHOLDERS Societal Partners Broader Society Oversight Federal Government Congress Private Funding Groups OMB Science Interest Groups OIG Award Recipients & Program Beneficiaries Researchers & Educators Academic Institutions Research&Education Centers GAO Research&Education Fellows School Districts Policy and Advisory Nonprofit Organizations NSB State & Local Agents NSF Advisory Committees Collaborators Federal Research Agencies Review Panels State & Local Agents International Researchers OSTP Small Businesses International Science Organizations Source: Booz Allen Hamilton and Business Frameworking group analysis NSF BUSINESS ANALYSIS 8
NSF faces several key administration and management challenges Summary of Key Challenges Increased Federal Oversight Shifts in Strategic Direction Towards More Collaboration Demands for Funds Continue to Increase Expanded Use of Technology Changes in Workforce Composition Source: Booz Allen Hamilton analysis. See appendices for additional detail. NSF BUSINESS ANALYSIS 9
Several attributes of the organization distinguish NSF from other agencies Source: Booz Allen Hamilton Analysis. See appendices for additional analysis NSF BUSINESS ANALYSIS 10
Based on NSF’s key challenges, some of NSF’s organizational attributes will require attention as the agency continues to grow Source: Booz Allen Hamilton Analysis. See appendices for additional analysis NSF BUSINESS ANALYSIS 11
NSF is effective in managing its business; however, the baseline analysis identified significant opportunities for improvement to help manage future growth Source: Booz Allen Hamilton Analysis. See appendices for additional analysis NSF BUSINESS ANALYSIS 12
Table of Contents 4 Project Background 4 Organizational Context and Case for Change 4 Key Findings and Recommendations – Business Processes – Tools and Technologies – Human Capital – Business Framework Assessment 4 Next Steps NSF BUSINESS ANALYSIS
Integrated Process Teams examined (5) of NSF’s core processes NSF Value Chain Processes Examined Progra m Devel opment Strategic Planning Resou rce Allocat ion Merit Review Award Mana gement & Oversight Perfo rmance Asses sment Knowledge Management : Business Analysis Processes Examined Data Collection Activities Analysis Initial Interviews Internal Doc Reviews External Reports Data Mining Process Baseline “Quick” Wins Areas for Improvement Focus Groups 1 -on-1 Interviews Stakeholder Interviews Applicant Survey Community Requirements Long-Term Opportunities 4 Can the opportunity area be addressed in the short-term? 4 Can the opportunity be addressed in the long-term? 4 Will the opportunity positively impact the scientific community 4 Does the opportunity have strategic value? or internal business operations? Team Exercises 4 Will the opportunity positively impact the scientific community or internal business operations? NSF BUSINESS ANALYSIS 14
With an understanding of NSF’s current environment, several opportunity areas emerged in the analysis of the core processes Future Scenario Drivers Increase in Demand for Funds Processes Examined Merit Review Areas of Opportunity Process Improvements to Reduce Workload Increase in Multidisciplinary Research Award Management & Oversight Improving Reviewer Community Management Further Automation of Processes Performance Assessment & Accountability Developing a Capability for NSF-Level Coordination & Collaboration Increased Federal Oversight and Emphasis on Performance Management Resource Allocation Greater Internal Performance Management Required for Growth Addressing the Timing of Commitments and Obligations Knowledge Management Facilitating Achieving Organizational Excellence Goals NSF BUSINESS ANALYSIS 15
In merit review, the increasing volume and complexity of proposals requires NSF to re-think how it conducts this core process Merit Review Award Management & Oversight Performance Assessment & Accountability Resource Allocation Knowledge Management NSF BUSINESS ANALYSIS 16
In the future, NSF must formalize the criteria for how awards are managed and decide how best to leverage the project reporting system Merit Review Award Management & Oversight Performance Assessment & Accountability Resource Allocation Knowledge Management NSF BUSINESS ANALYSIS 17
In order to effectively grow, NSF must more pro-actively manage its administration and management Merit Review Award Management & Oversight Performance Assessment & Accountability Resource Allocation Knowledge Management NSF BUSINESS ANALYSIS 18
The resource allocation process can be improved by formalizing the priority setting process, exploring alternative technologies for budget formulation, and better managing the timing of its commitments Merit Review Award Management & Oversight Performance Assessment & Accountability Resource Allocation Knowledge Management NSF BUSINESS ANALYSIS 19
Table of Contents 4 Project Background 4 Organizational Context and Case for Change 4 Key Findings and Recommendations – Business Processes – Tools and Technologies – Human Capital – Business Framework Assessment 4 Next Steps NSF BUSINESS ANALYSIS
Enterprise Architecture (EA) practices take a holistic view of an organization’s business processes, human capital and technology The mission, vision, goals & objectives. Identification of all business processes, information flows, and data required to support the business requirements Strategy & Business Processes Human Capital Technology Infrastructure The internal and external people and institutions that interact with the organization through the business functions and the applications, data and infrastructure that support them The applications, data and technical infrastructure that support the Agency’s business areas through the creation and manipulation of information or data A common misconception is that EAs just describe an organization’s technology NSF BUSINESS ANALYSIS 21
An Enterprise Architecture typically consists of a baseline architecture, a target architecture and an implementation plan 4 Baseline: a snapshot of an organization’s current business processes, human capital and technology 4 Target: a vision and description of the organization at some future point (in NSF’s case, 2 to 5 years) based on: – Business Analysis scenario design – Human Capital Management Plan – IT Target Architecture 4 Implementation Plan: the probable path from the baseline to the target that can include any number of “convergence architectures” – Convergence architecture: points in the implementation plan at which significant baseline features are converted/transitioned to target features NSF BUSINESS ANALYSIS 22
Analysis of NSF’s baseline and target architecture has revealed several possible improvements in the areas of computing environment, strategic information assets and IT Operations Computing Environment Strategic Information Assets IT Operations and Staff IT Infrastructure Applications & Technology NSF BUSINESS ANALYSIS 23
Analysis of NSF’s baseline and target architecture has revealed several possible improvements in the area of IT Infrastructure and Applications & Technology Computing Environment Strategic Information Assets NSF Progress IT Operations and Staff NSF Progress IT Infrastructure Applications & Technology NSF Progress NSF BUSINESS ANALYSIS 24
Table of Contents 4 Project Background 4 Organizational Context and Case for Change 4 Key Findings and Recommendations – Business Processes – Tools and Technologies – Human Capital – Business Framework Assessment 4 Next Steps NSF BUSINESS ANALYSIS
The Human Capital baseline included four work streams Description Workforce Supply Workload Analysis Competency Modeling Human Capital Management Review • Assessment of current workforce size, composition, and characteristics • Identification of historical trends to help project future workforce characteristics • Assessment of volume and distribution of workload based on organization-wide workload survey • Identification and definition of the general and technical competencies required for NSF positions/job families • Evaluation of NSF human capital management at both the organizational and HRM levels. Uses the Human Capital (HC) Lifecycle as a guide NSF’s Human Capital Baseline • What are the characteristics of NSF’s workforce? • What types of work is NSF doing? • How is this work distributed? • What types of competencies are required to do this work? • How are we selecting, developing, evaluating, compensating, and rewarding those people who do the work? NSF BUSINESS ANALYSIS 26
The information from the baseline served as input into an additional human capital work stream, NSF’s Human Capital Management Plan (HCMP) 4 The NSF Human Capital Management Plan is a strategic plan for NSF that provides an actionable “roadmap” and direction for improving human capital management within NSF and within the HRM Division 4 The Draft HCMP, Version 1. 0 was informed by the most recent available data on NSF’s baseline 4 A working group with broad NSF representation developed the HCMP between May and September 2003 – The working group was composed of Administrative Officers, Division Directors, Program Managers, a Deputy Assistant Director, representatives of the Division of Human Resource Management, the union, and multiple Directorates/Offices including: CISE, BFA, IRM, EHR, BIO, MPS, and OD – Booz Allen developed the HCMP concurrently with the Baseline HC Review in order to complete an initial draft by September 30, 2003 (originally the HCMP was scheduled to be developed after the Baseline HC Review) – As available, findings from the HC review were presented during relevant HCMP team meetings to inform the team on the “current state” of human capital – Findings were validated and refined as necessary, and were used to guide the development of corresponding action strategies NSF BUSINESS ANALYSIS 27
NSF should explore using the workforce supply analysis to inform the development of future target workforce objectives, and to identify gaps between current supply and future workforce requirements Workforce Supply Competency Modeling HR Practices: Foundational Issues HR Practices: Operational Issues NSF BUSINESS ANALYSIS 28
NSF is working to improve the strategic and operational management of its human capital by developing a competency-based HR system that links business strategy to individual performance Workforce Supply Competency Modeling HR Practices: Foundational Issues HR Practices: Operational Issues NSF BUSINESS ANALYSIS 29
NSF should continue to align its business strategies with human capital improvements and clarify and communicate HC management strategy and responsibilities Workforce Supply Competency Modeling NSF Progress HCMP Action HR Practices: Foundational Issues NSF Progress HR Practices: Operational Issues NSF BUSINESS ANALYSIS 30
NSF should explore creating a workforce plan / blueprint to determine future workforce size, composition, and mix Workforce Supply HCMP Action Competency Modeling HCMP Action HR Practices: Foundational Issues HR Practices: Operational Issues HCMP Action NSF BUSINESS ANALYSIS 31
Table of Contents 4 Project Background 4 Organizational Context and Case for Change 4 Key Findings and Recommendations – Business Processes – Tools and Technologies – Human Capital – Business Framework Assessment 4 Next Steps NSF BUSINESS ANALYSIS
By developing evaluation criteria and ranking NSF against these criteria, the Business Framework Assessment working group found areas for improvement in future business models Evaluation Criteria Current Position Evaluation Criteria Description Weak Increase responsiveness Provide effective and responsible stewardship of the public trust Strong 1 2 3 4 5 1 2 3 4 5 Foster excellence and innovation in S&ER&E Drive excellence Explore and promote high risk forefront S&ER&E Promote agility Build workforce Foster innovation Reinforce core values Attract, develop, retain and maximize the impact of a talented workforce Meet changing needs and requirements through agility and innovation Instill and continually reinforce NSF core values ? NA Source: Generated by Business Framework Assessment working group, September 9, 2003 NSF BUSINESS ANALYSIS 33
NSF highlighted key areas where current business processes do not meet future needs – linking planning to resource allocation and performance was listed as critical N/A Holding Strat. Co. Oversight Active Mgmt Identity and Values Critical Capabilities Budget Allocation Processes & Systems Findings Implications for Design Lacking critical linkage between planning, RA and PA&A processes Strategic Leadership Performance Management Op. Involved Critical Focus Required With greater oversight and accountability NSF will have the difficult task of justifying how it has chosen to spend its budget based upon its strategic goals, performance and budget allocation targets. NSF should have a core business process which links RA, PA&A and strategic goals. NSF does not have a As NSF grows it will have in place a set of guiding principles in the core values form of its core values that will allow NSF to never loose sight of its statement (NSF has most important attributes. It will also provide a vehicle for ensuring mission statement) organizational integrity. NSF should have a core values statement shared across organization The currently PA&A With increased oversight and accountability NSF needs to have a process is retrospective system by which PA&A will feedback directly into the strategic and is not linked to RA planning, program planning and RA decision making process NSF currently has training through academy but no developmental planning As NSF continues to grow it will become increasing more dependent upon optimizing human capital potential and given this need NSF should have a developmental plan for each employee and employee category Without a well defined linkage between RA, PA&A and strategic goals Lack critical linkage how will NSF decide how to best direct limited resources in the face of between RA, PA&A and greater monetary demands by the S&ER&E community. NSF should planning processes have a strategic planning and program planning core business process that links all of the above factors to RA. NSF does not have a unified IT standard In an environment of increased demand complexity there will be a need to exploit opportunities to improve organizational efficiency in terms of devising better strategies for shared services in particular NSF should have a unified IT platform Source: Generated by Business Framework Assessment working group, September 23, 2003 and Booz Allen Analysis NSF BUSINESS ANALYSIS 34
Strategic and program planning should be the core business processes that link RA, MR, AM&O and PA&A into a robust performance management cycle New Core “Mission Direct” (Core) Processes Performance Assessment and Accountability Processes Strategic Planning Program Planning Award Management and Oversight Resource Allocation Merit Review “Mission Support” Processes* Administrative Mgmt Financial Mgmt Human Resource Mgmt Internal Risk Mgmt Knowledge Mgmt Legislative Creation Public Affairs Regulatory Creation Supply Chain Mgmt Technology Mgmt Source: Business Framework Assessment (e. g. , Visioning Sessions and Stakeholder Analysis) Booz Allen analysis and Administration & Management Strategic Plan * These processes are in compliance with OMB Business Reference Model NSF BUSINESS ANALYSIS 35
Table of Contents 4 Project Background 4 Organizational Context and Case for Change 4 Key Findings and Recommendations – Business Processes – Tools and Technologies – Human Capital – Business Framework Assessment 4 Next Steps NSF BUSINESS ANALYSIS
Where are we going from here? 4 Preparation for Director/AD briefing on October 28 4 Business Process Best practice research, scenario development, and preliminary business case development – Merit Review (MR) – Award Management & Oversight (AMO) – Resource Allocation (RA) – Performance Assessment and Accountability (PA&A) 4 Human Capital – – – Workload Survey Prioritized Human Capital Management Plan (HCMP) “As Is” Competencies Finalize HCMP v 1 Task 4 integration Human Resource Management (HRM) Business Process Reengineering (BPR) 4 Tools and Technologies – – Develop initial “Integrated IT Implementation Plan” Update Enterprise Architecture Develop IT Business Cases Task 4 Integration NSF BUSINESS ANALYSIS 37
- Slides: 38