Brigadier General John J. Kelly, Jr., United States Air Force (Ret.)

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• Brigadier General John J. Kelly, Jr., United
  States Air Force (Ret.)
• Deputy Under Secretary for Oceans and Atmosphere
• The NOAA Leadership Seminar
• 08.28.2007

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Overview

• NOAAs Mission Vision
• Current Environment
• How the World views NOAA
• Transformation
• Business Model
• Budget

• Leadership
• Challenges
• Recapitalization
• Labor Relations
• Execution

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NOAAs Mission
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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

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NOAAs Vision
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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

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NOAA Organization
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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.

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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

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Organizational AssessmentPresidents Management
AgendaThird Quarter

• HUMAN CAPITAL Status l Progress l
• 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 Departments score of 68.2 percent.
• COMPETITIVE SOURCING Status l Progress l
• The study of NOAAs 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 l Progress l
• NOAA continues working collaboratively with the
  Department to implement financial performance
  initiatives.
• E-GOVERNMENT Status l Progress l
• NOAA needs to continue emphasis on improving
  information technology security certification and
  accreditation processes and documentation.
• BUDGET PERFORMANCE Status l Progress l
• 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.
• RD INVESTMENT Status l Progress l
• NOAA will attain Green status when 75 of its RD
  programs achieve PART ratings of Moderately
  Effective or higher. NOAA plans for two of its
  RD 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.

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Organizational Assessment
PART Summary
FY 2006 GPRA Measures
Program Year Score Rating
Hydrology 2007 74 Moderately Effective
National Marine Fisheries Service 2007 72 Moderately Effective
Office of Marine Aviation Operations 2006 72 Moderately Effective
Pacific Coastal Salmon Recovery Fund 2006 77 Moderately Effective
Navigation Service 2006 84 Moderately Effective
Ecosystem Research 2005 63 Adequate
Weather Related Services 2005 76 Moderately Effective
NOAA Protected Areas 2004 68 Adequate
Climate Research 2004 78 Moderately Effective
Coastal Zone Management Act 2003 46 Results Not Demonstrated
Small Business Innovative Research (NOAA/NIST) 2003 27 Results Not Demonstrated
National Weather Service 2002 89 Effective
Government-Wide Cumulative Distribution of PART scores to date Government-Wide Cumulative Distribution of PART scores to date
Rating Percent (and Number)of Programs
Effective 17 (166)
Moderately Effective 30 (299)
Adequate 28 (276)
Ineffective 3 (27)
Results Not Demonstrated 22 (209)
Government-wide, SBIR PARTs are on hold with OMB
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Organizational AssessmentFunding Summary
( thousands)
Total Funding 4,001.4
Estimated Spent 2,323.1
/- Total 1,678.3
of Total Spent 58
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.
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Transformation to One NOAA

• Holding Company
• Ad Hoc
• Subjective Decisions
• Talk

• Corporation
• Process
• Fact-based Decisions
• Execution

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NOAA Business Model
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NOAA Funding Trends(Constant Dollars in Billions)
Total 3.1 3.1 3.4 3.5 3.5 3.3 3.1 3.2 3.5
Data Source DOC Summary of enacted BA and DOC
BIB Addendum for FY 08 PB
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Leadership
What do you want us to do, Boss?!
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Leaders 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 peoples capabilities through coaching.
7. Know yourself.

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Lifes 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

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Performance Measures

• Understandable and meaningful
• Organizational culture achievement important
• Performance measures at several levels
• Information guide to action to improve performance

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Strategy Metrics Leaders Actions
Metrics
Report
Rationalize Resources
Strategy
Decide
Align Effort
Mission
Implement Strategy
Manage Accountabilities
Goals
Manage Processes
Improve Performance
Stakeholders
Manage Capabilities
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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.

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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.

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Keys to Creating One NOAA

• Remove the Stovepipe Culture
• Improve understanding of how Line/Staff Offices
  impact/benefit each other

X
NESDIS
NMAO
NMFS
NWS
NOS
OAR
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Keys to Creating One NOAA

• Improve Communication

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(No Transcript)
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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 10 -14 POP Requirements
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Recapitalization Aircraft Replacement
168M shortfall

• 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 10 -14 POP Requirements
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Recapitalization Fleet Replacement
Near Year Shortfalls have delayed ship
construction

• Lack of replacement ships
• ages the fleet and technology
• increases maintenance costs
• reduces effectiveness

FY 10 -14 POP Requirements
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Recapitalization Polar Orbiting Environmental
Satellites (POES NPOESS)
2.2B
FY 09 DoC Budget Submission
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Recapitalization Geostationary Orbiting
Environmental Satellites (GOES N-P, R)
3.0B
FY 09 DoC Budget Submission
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NOAAs Projected Satellite Program
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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.

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Labor Relations

• Changes in Working ConditionsFour 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

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Labor Relations

• Types of Working Conditions
• Personnel policies ExampleFive Level
  Performance Management System
• Practices ExampleOvertime Assignments
• Other Conditions ExampleOperational (Method,
  processes, and/or technology used by
  employees to complete their assigned
  duties.)
• ExampleWork Related (Work space, breaks,
  safety)

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