Brigadier General John J. Kelly, Jr., United States Air Force (Ret.) Deputy Under Secretary for Oceans and Atmosphere The NOAA Leadership Seminar

2 NOAA Leadership: Creating One NOAA Overview NOAA’s Mission & Vision Current Environment How the World views NOAA Transformation Business Model Budget Leadership Challenges Recapitalization Labor Relations Execution

3 NOAA Leadership: Creating One NOAA NOAA’s Mission

4 NOAA Leadership: Creating One NOAA 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

5 NOAA Leadership: Creating One NOAA NOAA’s Vision

6 NOAA Leadership: Creating One NOAA 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

7 NOAA Leadership: Creating One NOAA NOAA Organization

8 NOAA Leadership: Creating One NOAA Fiscal Year 2006 Audit Findings and Recommendations (NFRs) Major Conclusions: Unqualified audit opinion last eight years. Personal Property, Construction Work In Progress, Reimbursable Agreements, and Grants recurring issues.

9 NOAA Leadership: Creating One NOAA Fiscal Year 2006 Audit Information Technology Security OIG Evaluation: Good: Security Plans and Risk Assessments Not so Good: Testing Disaster Recovery FY07 Activities Complete Disaster Recovery Plan testing and implement Continuous Monitoring Authorizing Official review all IT Security Plans Certification and Accreditation current for all IT systems

10 NOAA Leadership: Creating One NOAA Organizational Assessment President’s Management Agenda Third Quarter HUMAN CAPITAL Status Progress In order to move to green in status, NOAA must complete its transition to the new 5-tier performance appraisal system, and raise its overall satisfaction score on the Human Resources Performance Management Survey to match or exceed the Department’s score of 68.2 percent. COMPETITIVE SOURCING Status Progress The study of NOAA’s Marine and Aviation Operations Relief Pool (36 FTEs) has been completed, and is undergoing internal management review prior to formal submission. To achieve a green status rating, at least one feasibility study needs to move to the preplanning stage. FINANCIAL PERFORMANCE Status Progress NOAA continues working collaboratively with the Department to implement financial performance initiatives. E-GOVERNMENT Status Progress NOAA needs to continue emphasis on improving information technology security certification and accreditation processes and documentation. BUDGET & PERFORMANCE Status Progress Hydrology and National Marine Fisheries underwent PART reviews. Both were rated Moderately Effective. According to DOC, NOAA was generally unable to link its PART recommendations that require funding to its FY 2009 budget request. R&D INVESTMENT Status Progress NOAA will attain Green status when 75% of its R&D programs achieve PART ratings of Moderately Effective or higher. NOAA plans for two of its R&D programs to undergo review in 2009 (Weather & Water and Climate) and one in 2010 (Ecosystems). NOAA is working with these programs to prepare them for successful reviews.

11 NOAA Leadership: Creating One NOAA Organizational Assessment ProgramYearScoreRating Hydrology200774Moderately Effective National Marine Fisheries Service200772Moderately Effective Office of Marine & Aviation Operations200672Moderately Effective Pacific Coastal Salmon Recovery Fund200677Moderately Effective Navigation Service200684Moderately Effective Ecosystem Research200563Adequate Weather & Related Services200576Moderately Effective NOAA Protected Areas200468Adequate Climate Research200478Moderately Effective Coastal Zone Management Act200346Results Not Demonstrated Small Business Innovative Research (NOAA/NIST) Results Not Demonstrated* National Weather Service200289Effective FY 2006 GPRA Measures PART Summary Government-Wide Cumulative Distribution of PART scores to date: Rating Percent (and Number) of Programs Effective17% (166) Moderately Effective30% (299) Adequate28% (276) Ineffective3% (27) Results Not Demonstrated22% (209) * Government-wide, SBIR PARTs are on hold with OMB

12 NOAA Leadership: Creating One NOAA Organizational Assessment Funding Summary ($ thousands) Total Funding $4,001.4 Estimated Spent $2, /- Total $1,678.3 % of Total Spent58% NOAA is obligating at a rate of 87% versus planned, having obligated 58% of its FY2007 budget as of the end of the 3rd quarter.

13 NOAA Leadership: Creating One NOAA Transformation to “One NOAA” Holding Company Ad Hoc Subjective Decisions Talk Corporation Process Fact-based Decisions Execution

14 NOAA Leadership: Creating One NOAA NOAA “Business” Model

15 NOAA Leadership: Creating One NOAA NOAA Funding Trends (Constant Dollars in Billions) Data Source: DOC Summary of enacted BA and DOC BIB Addendum for FY 08 PB Total

What do you want us to do, Boss?! Leadership

17 NOAA Leadership: Creating One NOAA 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.

18 NOAA Leadership: Creating One NOAA 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

19 NOAA Leadership: Creating One NOAA Performance Measures Understandable and meaningful Organizational culture — achievement important Performance measures at several levels Information guide to action to improve performance

20 NOAA Leadership: Creating One NOAA Strategy … Metrics … Leaders … Actions Strategy Mission Goals Stakeholders Metrics Report Rationalize Resources Align Effort Manage Accountabilities Manage Processes Manage Capabilities Decide Implement Strategy Improve Performance

21 NOAA Leadership: Creating One NOAA 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.

22 NOAA Leadership: Creating One NOAA 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.

23 NOAA Leadership: Creating One NOAA NMAO NWS OAR NOS NMFS NESDIS Keys to Creating “One NOAA” Remove the Stovepipe Culture Improve understanding of how Line/Staff Offices impact/benefit each other

24 NOAA Leadership: Creating One NOAA Keys to Creating “One NOAA” Improve Communication

26 NOAA Leadership: Creating One NOAA Recapitalization Facilities Construction and Maintenance $361M shortfall 800 owned and leased facilities Current replacement value of nearly $4 billion 61 NOAA owned facilities more than 50 years old FY POP Requirements

27 NOAA Leadership: Creating One NOAA $168M shortfall Recapitalization Aircraft Replacement No funding in current program for new aircraft Average age in FY 11 is 30 years Aircraft aging beyond planned service life Aircraft becoming less reliable and increasingly difficult to maintain FY POP Requirements

28 NOAA Leadership: Creating One NOAA Recapitalization Fleet Replacement Lack of replacement ships… ages the fleet and technology increases maintenance costs reduces effectiveness FY POP Requirements Near Year Shortfalls have delayed ship construction

29 NOAA Leadership: Creating One NOAA Recapitalization Polar Orbiting Environmental Satellites (POES + NPOESS) * FY 09 DoC Budget Submission $2.2B

30 NOAA Leadership: Creating One NOAA Recapitalization Geostationary Orbiting Environmental Satellites (GOES N-P, R) * FY 09 DoC Budget Submission $3.0B

31 NOAA Leadership: Creating One NOAA NOAA’s Projected Satellite Program

32 NOAA Leadership: Creating One NOAA 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.

33 NOAA Leadership: Creating One NOAA 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

34 NOAA Leadership: Creating One NOAA 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)

What do you want NOAA to look like in 15 years?