Grants Business Process Re-Engineering (BPR) Overview Rimas T. Liogys Director Policy, Planning, and Systems

Topics Vision for Strengthening Financial and Administrative Services Grants Vision and Strategic Goals BPR Recommendations Overview BPR Implementation Approach Grants Operating Model FY06 Performance Metrics Expected BPR Implementation Results Menu Slide This is the context we are working in, and some opportunities and challenges that we face. The 2004 election has brought the need to create new relationships on the Hill.

Vision for Strengthening Financial and Administrative Services “[W]e are working to improve the management and delivery of financial and administrative services. Numerous studies… documented opportunities for improvements in financial and administrative service areas and recommended changes to both our organizational structure and business processes.” - Memorandum from Conrad C. Lautenbacher, Jr., Vice Admiral, U.S. Navy (Ret.), September 9, 2004 Vision Clear, consistent policies and procedures Properly resourced workforce with appropriate competencies and skills Value-added business processes with maximum use of automation for improved timeliness and quality of service delivery Performance metrics that enable program assessments, diagnostics, and customer satisfaction Assurance that processes are aligned with NOAA goals, properly governed, and effectively managed Increased organizational capabilities in new processes and improved performance in current processes

Grants Vision and Strategic Goals Grants Vision Statement: Enable achievement of NOAA's mission through effective and efficient grant program partnerships Grants Strategic Goals: Increase [internal and external] customer outreach, service and understanding of grant programs Strengthen Grants Management coordination, planning, execution and monitoring Measure Grant results against NOAA's mission

BPR Approach Business Process Reengineering Training Phases I II III IV Business Process Reengineering Training Assessment of “As-Is” Environment Design of “To-Be” Processes Implementation of BPR Transformation Activities: Participate in tailored training in BPR tools and techniques – to include approximately 60 NOAA and 40 other Department of Commerce staff Complete an Action Learning Module that prepares participants for next phase Perform a 90-day end-to-end assessment of 8 administrative business areas across NOAA with trained NOAA staff Identify areas of duplication and redundancy as well as opportunities and recommendations for improvement Participate in “To-Be” design effort with trained NOAA and Department staff Focus areas: Budget Formulation and Execution Grants Administration Workforce Management Analyze current business processes, develop new business processes, and develop implementation plan Execute the plan to implement new organization and business processes changes Evaluate, measure, and adjust the new business processes Executive Leadership committed to strengthening NOAA’s Financial and Administrative Services NOAA’s vision for the BPR effort: Consistent policies and procedures across NOAA – eliminate the need to “shop for the best answer” Properly resourced staff – “right people in the right jobs”; and the right number of employees Value-added processes….leverage and enhance the IT systems we currently have to ease the manual work staff does and free time up for them to do more value-added work and analysis Assurance processes are aligned……… Increased organization (LO and corporate offices) capabilities BPR effort initiated in September 2004 “As-Is” Phase II assessments for 8 functional areas completed and final report released April 11, 2005 “To-Be” Phase III activities started in March, 2005 TMT has conducted the majority of Phase III activities for Grants: including best practices research, deep analysis of Phase II data, interviewed SME’s and conducted liaison meetings and focus groups; identifying major issues and developing improvement recommendations. Org/Change management activities including the impacts of the new process on roles and organization structure; culture gap analysis, capability and skill analysis. Final Report released end of November; January 06 for Budget Phase IV implementation (January ’06 for Grants)

Grants Operating Model Customers Grant Services OAR* GMD Reps LO Reps Outreach & Advisory Services • Stakeholder Relationship Management Grants - Budget Planning and Review Proactive Site Visits Progress Reviews Education and Outreach Performance Measurement against Mission Goals Customer Service Teams FALD Attorneys Operational Services Federal Funding Opportunities Merit Reviews Minimum Requirements Reviews NEPA Reviews Award, Post Award, and Close out Processing Grants Online Grants.gov – Grants Website NEPA Coordinators NOS* NMFS/MSI/NESDIS* NMFS/Corp/NWS* *GMD Reps = Grants Officers, Policy Advisors, Audit Specialist, Team Leads, Specialists, and Technicians LO Reps = Grants Coordinator, Program Managers, Federal Program Officers, and Program Assistants Clear Roles Accountability GMS/FPO Certification End to Performance Metrics Efficient and Effective Processes Knowledge Management Operating Enablers Collaborative, “ One NOAA ” Grants Management Operating Model NMFS* OAR/MSI* OAR/NESDIS/Corp/NWS* Grants Administration Operating Model

BPR Recommendations Overview Summary of Grants BPR recommendations Increase emphasis on grants planning Reduce transaction processing; Redistribute workload throughout the fiscal year Realign roles and responsibilities to improve efficiency; Enhance NOAA-wide communication, collaboration, and outreach Develop standard operating procedures, policies, and consistent processes across NOAA Increase skill levels of Grants personnel

BPR Implementation Approach

Initial BPR Recommendation Results Updated FY06 Grants Performance Metrics Increased focus on measuring Grant results in helping achieve NOAA’s mission goals Balanced focus on critical metrics in addition to timeliness in processing grants, including: Customer satisfaction Employee skill proficiency NMFS Grants Planning Pilot Developing Broad Area Announcement “Benefits from process reengineering to be identified by end of FY 06”

FY06 Performance Metrics FY06 Metrics Baseline Targets Year 1 Year 2 Year 3 Long Term % of GMS and FPO certified 24% 35% 50% 100% % of grants awarded 30 days prior to the start/effective date TBD 55% 70% 85% % of multi-year grant awards 36% 40% 45% % of non-competitive grants 19% 15% 10% 5% % of grantee satisfaction (unsuccessful grant applicants and grant recipients) ~70% 75% 95% % of internal grant community satisfaction % of grants awarded enhancing NOAA’s Mission Goals For each proposed metric, the Grants BPR Team identified targets for the upcoming 3 fiscal years and a long-term target. These metrics expand upon the As-Is performance metrics and enable NOAA’s Grants Community to measure additional elements beyond timeliness. In addition, the Grants BPR Team developed a detailed process and approach to measure each proposed performance metric , detailing the frequency, approach/process, and considerations/assumptions. Examples – Hip Pocket

Expected BPR Benefits Reduce cost to process a grant Increase grant processing capacity Decrease cycle time to process a grant Shift focus of grants personnel from low value added to high-value added activities Improve grant workload distribution Increase ability to award grants 30-days prior to their start date, leading to increased customer satisfaction

Backup Slides

BPR Recommendations Overview 19 Grants BPR recommendations help achieve several desired outcomes: Increase emphasis on grants planning Award existing multi-year grants/non-competitive continuations in first quarter Formalize process for identifying Grant-related earmark recipients in a timely manner Provide grants mission-related data to LO’s to assist with future funding decisions Reduce transaction processing; Redistribute workload throughout the fiscal year Create an exception to the requirement to publish solicitations in the Federal Register Increase the number of new multi-year Grant awards Reduce the number of non-competitive Grants

BPR Recommendations Overview Realign roles and responsibilities to improve efficiency; Enhance NOAA-wide communication, collaboration, and outreach Establish GMD prioritization criteria for processing awards Build collaboration between GMD and LO staff into the end-to-end Grants process Conduct proactive site visits Design and implement a comprehensive knowledge management website Realign GMD and FALD responsibilities

BPR Recommendations Overview Develop standard operating procedures, policies, and consistent processes across NOAA Standardize electronic Grant package submissions Develop consistent approach to the pre-application process Develop consistent approach to conducting merit reviews Implement enhanced NEPA grant requirements Develop Construction Grants policies and SOP’s Formalize/Publicize process for Grantee compliance Increase skill levels of Grants personnel Develop a NOAA-wide Federal Program Officer certification program Develop a GMD Grants Specialist certification program QW -

BPR Implementation Approach