DOI Business Conference US Fish and Wildlife Service Managing for Results and Sustaining Excellence May 23, 2006

Fish and Wildlife Service mission Working with Others -- To Conserve, Protect and Enhance Fish, Wildlife, and Plants and their Habitats for the Continuing Benefit of the American People Before getting into our topic today – for those of you who are not familiar with the Fish and Wildlife Service – I would like to take a minute to tell you who we are: Our Mission is To Conserve, Protect and Enhance Fish, Wildlife, and Plants and their Habitats for the Continuing Benefit of the American People and that this mission can only be accomplished by working with our many partners. The Service has been around since 1871 and although it has been run by at least three departments and endured many changes, its mission has remained remarkably consistent for the last 132 years.

Fish and Wildlife Service: Some of the things we do Stewards of 545 National Wildlife Refuges – 95 million acres of public lands. Manage 70 National Fish Hatcheries –restore depleted native & recreational fish Administer the Recovery of Endangered & Threatened Species – over 1200 in the U.S. Promote & Support Voluntary Partnerships to Conserve Important Habitats. Provide fish & wildlife consultation services to partners. Mission Delivery -- through a wide range of federal legislation including responsibility for the protection and conservation of migratory birds, recovery of threatened and endangered species, protection of certain marine mammals and restoration of interjurisdictional fisheries. As Secretary Scarlett mentioned earlier– The Service manages nearly 550 National Wildlife Refuges encompassing 95 million acres that provide exception wildlife experience for the public and provide important habitat for hundreds of migratory birds, endangered species and native fisheries; operates 70 NF Hatcheries – focused on the restoration of declining fish populations; and Administers the Endangered Species Act - an important piece of legislation that asks the Service to identify species that are in danger of extinction and to pursue recovery of these species. We are a decentralized agency – of nearly 10,000 employees and $1.9 billion – Our Customers: The Service works with diverse partners, including other federal agencies, state and local governments, tribes, international organizations, and private organizations and individuals.

Cost & Performance Framework Agenda Cost & Performance Framework Linking Organizational Performance to Employee Performance Web-Based Support Tools Denise – Opening Remarks ….. This Briefing will Cover: The FWS cost and performance framework Identify the Service’s objectives for transitioning to a culture of performance based decision-making & strategies focus on Create an Environment of Management Excellence, And How implementation of this Framework would lead to successful integration of Budget and Performance, And than - we would like to show you a strategic application and a more tatical application of cost and performance Cost and Performance in Action Strategic application: FY08 Priority Setting and Budgeting Tactical application: FY07 Program Budget Justification Like to Demo the Business Intelligence tools that are making cost and performance transparent and accessible to the field and managers Decision Support Tools Demonstration Cost analysis Cost & Performance Reporting Integrating Organization & Employee Performance Finally, the Lesson Learned & Best Practices NEXT SLIDE

FWS Cost & Performance Objectives Visibility of the cost of "Results” Ensure that the programs are achieving desired results at an acceptable cost Tie Organizational Performance to Employee Performance Understand the full cost of business operations Streamline business processes and develop a performance-based culture Ok – lets get down to business…. To be results-oriented, managers must ask themselves if the programs they administer are achieving the desired result at an acceptable cost. being results-oriented is about delivering results AND also about our having an expectation that costs will be managed. This translated to four Key Objectives for the Service: We needed to: Understand the full Cost of Business Operations as a foundation for knowing “What Acceptable Costs Are”. Visibility of the Cost of Results -- have a clear line of sight between costs and performance/results. It is about having a systematic and deliberate approach to using resources to achieve intended goals. integrate this knowledge in our resource decision processes – through budget formulation and execution as well as our human resource management assessment. Finally – Using these tools to investigate opportunities to streamline business processes -- We did just that on the Adm Study and hope to use cost & performance information to support our FY ’07 HR line of business initiative for shared services. NEXT SLIDE

FWS Performance Cost Management Framework A comprehensive performance management solution --integrating budgeting, planning processes with financial and performance data systems. DOI Strategic Plan End Outcomes Goals Framework introduces "cascading" measures from DOI to FWS Programs FWS Operational Plan Performance Goals & Measures Complete alignment of program work to Service & DOI Performance The key to all of this work was our completion this year of the mapping of our performance metrics for all programs to cross-functional FWS-wide goals, then to the DOI goals, measures and mission areas. FWS Measurement Framework - is based on the performance prism (Kennerley & Neely) the strength is that it unifies existing measurement frameworks and builds upon their individual strengths. ABC is strong in that it explicitly recognizes the importance of activities and processes, but weak in that it does not link these processes back to strategies (FWS programs) or stakeholders (employees & external partners). Performance Prism -addresses these and other issues, by providing an integrated framework with which to view organizational performance. In addition, FWS has made use of performance success maps (or cause and effect diagrams) - identified in our framework as critical success factors. This allows us to focus on few measures. Mapping of ABC Costs to Performance This performance mapping, combined with the mapping of the ABC costs to the same set of goals, enable us for the first time to create a view of both performance and costs from which to make decisions. Performance Based budgeting relies on two key factors – that we have developed an integrated and comprehensive set of program goals and measures and that we have aligned our ABC – work activities and tasks to them. Green Box – lower right side -- Costs (labor and non-labor) that are captured through our work activities are linked to specific sets of measures and goals (purple box) providing a full cost for goal achievement by program goal (gold box) and by Service goal (blue box) . Costs will be viewed by unit and in total. All of our costs and goals will be aligned to the Departments Goals – so ultimately the Department will be showing full cost for their goals as well as cost of each output. SES Performance Standards is shown here as directly – there have been questions concerning how we might deal with not only the SES performance level of accountability get the lofty goals to the field level of engagement. Because we have aligned and integrated programmatic level performance accountability including PART and MBOs into a single performance based system – it is much easier for field employees to see where they fit into the program level and how that program level relates to FWS mission and DOI mission. NEXT SLIDE SES Performance Plans Programs Critical Success Factors (CSF) PART OMB Reviews Link to Performance Budget Program Performance Measures & Program Workload Measures $ & Staff Process Goals & MBOs Mission Goals ABC Activities & Tasks cost to PM & Goals

FWS Performance Cost Management Framework A comprehensive performance management solution --integrating budgeting, planning processes with financial and performance data systems. DOI Strategic Plan End Outcomes Goals Framework introduces "cascading" measures from DOI to FWS Programs FWS Operational Plan Performance Goals & Measures Complete alignment of program work to Service & DOI Performance The key to all of this work was our completion this year of the mapping of our performance metrics for all programs to cross-functional FWS-wide goals, then to the DOI goals, measures and mission areas. FWS Measurement Framework - is based on the performance prism (Kennerley & Neely) the strength is that it unifies existing measurement frameworks and builds upon their individual strengths. ABC is strong in that it explicitly recognizes the importance of activities and processes, but weak in that it does not link these processes back to strategies (FWS programs) or stakeholders (employees & external partners). Performance Prism -addresses these and other issues, by providing an integrated framework with which to view organizational performance. In addition, FWS has made use of performance success maps (or cause and effect diagrams) - identified in our framework as critical success factors. This allows us to focus on few measures. Mapping of ABC Costs to Performance This performance mapping, combined with the mapping of the ABC costs to the same set of goals, enable us for the first time to create a view of both performance and costs from which to make decisions. Performance Based budgeting relies on two key factors – that we have developed an integrated and comprehensive set of program goals and measures and that we have aligned our ABC – work activities and tasks to them. Green Box – lower right side -- Costs (labor and non-labor) that are captured through our work activities are linked to specific sets of measures and goals (purple box) providing a full cost for goal achievement by program goal (gold box) and by Service goal (blue box) . Costs will be viewed by unit and in total. All of our costs and goals will be aligned to the Departments Goals – so ultimately the Department will be showing full cost for their goals as well as cost of each output. SES Performance Standards is shown here as directly – there have been questions concerning how we might deal with not only the SES performance level of accountability get the lofty goals to the field level of engagement. Because we have aligned and integrated programmatic level performance accountability including PART and MBOs into a single performance based system – it is much easier for field employees to see where they fit into the program level and how that program level relates to FWS mission and DOI mission. NEXT SLIDE SES Performance Plans Programs Critical Success Factors (CSF) PART OMB Reviews Link to Performance Budget Program Performance Measures & Program Workload Measures $ & Staff Process Goals & MBOs Mission Goals ABC Activities & Tasks cost to PM & Goals

FWS Performance Management and Accountability DOI Strategic Plan – FWS Accountability 52 FWS GPRA Goals PART Measures, Recommendations & Milestones President's Management Agenda (PMA) Scorecards Assistant Directors SES Performance Plan-Required: Performance Element 1A 52 DOI GPRA Goals - Non Target - Oversight Performance Element 1B 6 FWS Operational Plan Goals - LE, IA, AFA. 17 FWS Operational Plan PART Measures - oversight Performance Element II PMA Regional Directors SES Performance Plan-Required: Performance Element 1A 52 DOI GPRA Goals-Target Specific Performance Element 1B 17 FWS Operational Plan PART Measures 2 FWS Operational Plan Goals Endangered Species & Refuges (25 measures) Performance Element II PMA FWS Operational Plan Organizational Accountability 37 Operational Plan Goals 101 Critical Success Factors Program Performance Measures PMA Scorecard Measures. PART Measures

SES template: Operational plan performance measures for Region 1

Cost & Performance In Action Demo of decision support tools Linking Organization & Employee Performance Let’s look at that on the NEXT SLIDE.

Thank You!