1. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) APEX 29 Executive Roundtable Discussion SES Tiering within the Department of Defense September 2009

2. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 2 The purpose of this “SES Tiering” Executive Roundtable Discussion is to...  Stimulate Thinking – to stimulate your thinking about “SES Tiering” in the Department of Defense  Examine Objectives and Historical Data – to examine the theory and data underpinning the “tiering” of SESers in the Department of Defense  Solicit Suggestions – to solicit your proposed suggestions about what should and can be done to achieve the objectives of DoD Directive 1403.03: “The Career Lifecycle Management of the Senior Executive Service Leaders within the Department of Defense” (October 25, 2007), and Subchapter 920 “Executive and Senior Professional Pay and Performance System” (SC920) (April 28, 2008)

3. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 3 Overview – the framework for SES Tiering in DoD is shaped by...  DoD1403.03: “The Career Lifecycle Management of the Senior Executive Service Leaders within the Department of Defense” (October 25, 2007) 5.2.3 Career SES positions will be supported by a common tier structure as established by the Deputy Secretary of Defense to provide transparency and comparability in executive position and compensation management  Tier Structure as per SC920: “Executive and Senior Professional Pay and Performance System” (SC920) (April 28, 2008) A three-level system that groups positions with common characteristics into Tiers. Tier levels delineate the importance of different positions by placing emphasis on the characteristics of positions, such as impact on mission, level of complexity, span of control, inherent authority, scope and breath of responsibility, and influence in joint, national security matters Executive positions are sorted into 3 tiers based on the position characteristics. The hierarchy resembles the General/Flag Officer hierarchy: Tier 1 positions (one-star equivalent) generally having less complexity and impact on mission outcomes; and Tier 3 positions (three-star equivalent) having significant complexity, impact on mission outcomes, and/or influence on joint, national security matters

4. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 4 SC920 specifically calls for the following...  Tier Structure. A three-tier structure as a means of ensuring comparability and transparency for Executive positions and compensation management across the Department.  Recognition of Position Diversity. The foundational principle that Executive positions vary in terms of impact on mission, level of complexity, span of control, inherent authority, scope and breadth of responsibility, and influence in joint, national security matters.  Common Understanding. Promoting a common understanding of position differences, a common perspective about the relationship of these differences on mission outcomes, and a job progression hierarchy (succession framework) to enable SES members to advance their career.

5. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 5 These guiding documents also define “Enterprise Positions”  Enterprise Positions (DoD 1403.03) 5.2.2.1: Have a unique demand of scope and breadth, influence, and impact, and will affect organizational outcomes more significantly Enterprise positions require competency in joint matters and broad, enterprise-spanning perspective Selections for enterprise positions will require the Head of Components to confer with the Deputy Secretary of Defense o Defense Executive Advisory Board (DEAB) will approve the DoD list of Enterprise positions and confer regarding appointments based on DoD Component Head selection  SC920: Enterprise Positions will be Tier 3 level positions

6. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 6 SC 920 provides criteria for sorting executive positions into three tiers  Executive positions sorted into 3 tiers based upon characteristics of position Tier 1Tier 2Tier 3 Oversees planning and effective execution on the full spectrum of programs Develops systems and standards for the administration and management of approved plans and programs Develops policies and programs Manages medium-to-small programs that have Component/ agency-wide impact Leader/Deputy of an organization below headquarters level and/or with accountability for major programs Has approval authority on major command or equivalent polices and programs Typically reports to Tier 3 Senior Executive or two/three-star General/Flag Officer or equivalent May supervise at least one Tier 1 Senior Executive or G/FO or equivalent Leader/Deputy/Manager of large line and/or policy organization at Component/agency headquarters or major command or equivalent Report to Presidential Appointee with Senate Confirmation or a three/four-star General/Flag Officer or equivalent Typically supervises at least one Senior Executive or G/FO or equivalent Serves as the most senior level in substantial functional community

7. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 7 And, each tier has a compensation ceiling Career Tier 3 ceiling: $177,000 Tier 2 ceiling: $170,000 Tier 1 ceiling: $162,900 Each tier has a compensation ceiling which may only be exceeded with Authorizing Official approval. New Executive salary will generally be set at 6-10% over current salary

8. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 8 What the data tells us  Senior Executives within the Department of Defense CoCOMs included in the Services that are the Executive Agent for that CoCOM Does not include ST/SL Does not include Intelligence Professionals Does not include Office of the Inspector General

9. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 9 What the data tells us CoCOMs included in the Services that are the Executive Agent for that CoCOM Does not include ST/SL Does not include Intelligence Professionals Does not include Office of the Inspector General

10. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 10 Given the DoDD 1403.03 and SC920 objectives, how would you answer the following? Over the two years that DoD has been under a three-tier structure, we have learned a lot about the effectiveness of the current tier structure in terms of: Making distinctions amongst positions based on complexity, authority, level of responsibility and mission impact, and Creating an Executive succession management framework.  Does the three-tier structure achieve the desired outcomes? If not, what would a more effective alternative look like?

11. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 11 And …  Is the work of an SES in DoD diverse enough to be supported by three tiers? Should there be more Tiers? Should there be fewer Tiers?  Should tier levels be based on the position, the person, or both? Example: should positions allow for increases/progression in tiers based on performance and growth in a position?  Do you know the tier for your position and what it means for pay, level of responsibility, equivalency, etc? Before receiving this overview, did you know the pay minimums and maximums for each Tier? What communication improvements should be made to enhance Executive understanding of SES Tiering in DoD?

12. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 12 What suggestions do you have about Enterprise Positions?  Other than the criteria in the DoD1403.03, what other criteria would be important for DoD to define “enterprise positions?”  Should only Tier 3 be “enterprise positions?” If not, what do you recommend?  Should enterprise classifications be assigned to individuals or remain with positions?