    [Analytical Perspectives]
    [Scorecard Standards for Success]
    [23. Scorecard Standards for Success]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 409]]

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                         SCORECARD STANDARDS FOR SUCCESS

    ========================================================================

    [[Page 411]]

                      23.  SCORECARD STANDARDS FOR SUCCESS

      In August 2001, the President launched his Management Agenda targeted
    to ``address the most apparent deficiencies where the opportunity to
    improve performance is the greatest.'' The Agenda includes five
    government-wide initiatives, each of which is described more fully in
    the Budget chapter on Governing for Accountability.
        Strategic Management of Human Capital;
        Competitive Sourcing;
        Improved Financial Performance;
        Expanded Electronic Government; and
        Budget and Performance Integration.
      In order to ensure accountability for performance and results, the
    Administration is using an Executive Branch Management Scorecard. The
    Administration will use this scorecard to track how well departments and
    agencies are executing the management initiatives, and where they stand
    at a given point in time against overall standards for success.
      The scorecard employs a simple grading system common today in well-run
    businesses: green for success, yellow for mixed results, and red for
    unsatisfactory. Scores are based on five standards for success defined
    by the President's Management Council and discussed with experts
    throughout government and academe, including individual Fellows from the
    National Academy for Public Administration. The standards for financial
    management, for example, were reviewed by the Secretary of the Treasury,
    the Comptroller General, and the Director of the Office of Management
    and Budget.
      Under each of the five standards, an agency is ``green'' if it meets
    all of the standards for success, ``yellow'' if it has achieved some but
    not all of the criteria, and ``red'' if it has any one of a number of
    serious flaws. For example, in financial management, an agency is
    ``red'' if its books are such a mess that auditors cannot express an
    opinion on the agency's financial statements, or if an agency has a
    history of spending more money than has been given to it in law by the
    Congress.
      The initial scorecard shows a lot of poor scores, reflecting the state
    of the government this Administration inherited. This was to be expected
    since, as the President indicated when selecting the Management Agenda
    items, the areas are ``targeted to address the most apparent
    deficiencies where the opportunity to improve performance is the
    greatest.'' The marks that really matter will be those that record
    improvement, or lack of it, from these starting points.
      The initial scorecard can be found in the Budget chapter on Governing
    for Accountability. The agency chapters, which follow, discuss in
    greater detail the scores for individual departmental and agencies.
      Over time, the scores should improve as departments and agencies
    correct the problems. The Administration will update this report twice a
    year and issue a mid-year report during the summer. This Administration
    will not indulge in grade inflation; we will hold ourselves responsible
    and report honestly when progress is too slow.

    [[Page 412]]

                                             SCORECARD STANDARDS FOR SUCCESS
                                                      Human Capital
    ----------------------------------------------------------------------------------------------------------------
                  Green                                Yellow                                   Red
    ----------------------------------------------------------------------------------------------------------------

    ----------------------------------------------------------------------------------------------------------------

      --------------------------------------------------------------------------------------------------------------
    Must Meet All Core Criteria:

     Agency human capital
     strategy is aligned with
     mission, goals, and
     organizational objectives: 1)
     integrated into Budget and
     Strategic Plans; 2) consistent
     with OPM's human capital
     scorecard (issued by December 1,
     2001); and 3) complies with
     standards for internal
     accountability systems to ensure
     effective merit-based HRM.

     Agency has a citizen-
     centered organizational
     structure that is delayered and
     oriented toward performing the
     mission assigned to it.

     Agency 1) sustains high-
     performing workforce that is
     continually improving in
     productivity; 2) strategically
     uses existing personnel
     flexibilities, tools, and
     technology; and 3) implements
     effective succession plans.

     No skill gaps/
     deficiencies exist in mission
     critical occupations.

     Agency differentiates
     between high and low performers
     through appropriate incentive
     and rewards.

     Changes in agency         Achievement of Some but not All Core    Has Any One of the Following
     workforce skill mix and            Criteria; No Red Conditions.            Conditions:
     organizational structure reflect
     increased emphasis on e-
     government and competitive
     sourcing.

    ----------------------------------------------------------------------------------------------------------------

    [[Page 413]]

                                             SCORECARD STANDARDS FOR SUCCESS
                                                  Competitive Sourcing
    ----------------------------------------------------------------------------------------------------------------
                  Green                                Yellow                                   Red
    ----------------------------------------------------------------------------------------------------------------

    ----------------------------------------------------------------------------------------------------------------

      --------------------------------------------------------------------------------------------------------------
    Must Meet All Core Criteria:

     Completed public-private
     or direct conversion competition
     on not less than 50 percent of
     the full-time equivalent
     employees listed on the approved
     FAIR Act inventories.

     Competitions and direct
     conversions conducted pursuant
     to approved competition plan.

     Commercial reimbursable   Achievement of Some but not All Core    Has Any One of the Following
     support service arrangements       Criteria; No Red Conditions.            Conditions:
     between agencies are competed
     with the private sector on a
     recurring basis.

    ----------------------------------------------------------------------------------------------------------------

                                             SCORECARD STANDARDS FOR SUCCESS
                                                  Financial Management
    ----------------------------------------------------------------------------------------------------------------
                  Green                                Yellow                                   Red
    ----------------------------------------------------------------------------------------------------------------

    ----------------------------------------------------------------------------------------------------------------

    Must Meet All Core Criteria:

     Financial management
     systems meet Federal financial
     management system requirements
     and applicable Federal
     accounting and transaction
     standards as reported by the
     agency head.

     Accurate and timely
     financial information.

     Integrated financial and
     performance management systems
     supporting day-to-day
     operations.

     Unqualified and timely    Achievement of Some but not All Core    Has Any One of the Following
     audit opinion on the annual        Criteria; No Red Conditions.            Conditions:
     financial statements; no
     material internal control
     weaknesses reported by the
     auditors.

    ----------------------------------------------------------------------------------------------------------------

    [[Page 414]]

                                             SCORECARD STANDARDS FOR SUCCESS
                                                 Expanding E-Government
    ----------------------------------------------------------------------------------------------------------------
                  Green                                Yellow                                   Red
    ----------------------------------------------------------------------------------------------------------------

    ----------------------------------------------------------------------------------------------------------------

      --------------------------------------------------------------------------------------------------------------
    Must Meet All Core Criteria:

     Strategic Value: all
     major systems investments have a
     business case submitted that
     meets the requirements of OMB
     Circular A-11 (Exhibit 53, Form
     300).

     IT Program Performance:
     On average, all major IT
     projects operating within 90% of
     Form 300 cost, schedule, and
     performance targets.

    E-government and GPEA
     implementation: (must show
     department-wide progress or
     participation in multi-agency
     initiative in 3 areas)

     Citizen one-stop service
     delivery integrated through
     Firstgov.gov, cross-agency call
     centers, and offices or service
     centers.

     Minimize burden on
     business by re-using data
     previously collected or using
     ebXML or other open standards to
     receive information.

     Intergovernmental:
     Deploying E-grants or Geospatial
     Information one-stop.

     Obtaining productivity    Achievement of Some but not All Core    Has Any One of the Following
     improvements by implementing       Criteria; No Red Conditions.            Conditions:
     customer relationship
     management, supply chain
     management, enterprise resource
     management, or knowledge
     management best practices.

    ----------------------------------------------------------------------------------------------------------------

    [[Page 415]]

                                             SCORECARD STANDARDS FOR SUCCESS
                                           Integrating Budget and Performance
    ----------------------------------------------------------------------------------------------------------------
                  Green                                Yellow                                   Red
    ----------------------------------------------------------------------------------------------------------------

    ----------------------------------------------------------------------------------------------------------------

    Must Meet All Core Criteria:

     Integrated planning/
     evaluation and budget staff work
     with program managers to create
     an integrated plan/budget and to
     monitor and evaluate its
     implementation.

     Streamlined, clear,
     integrated agency plan/budget
     sets forth outcome goals, output
     targets, and resources requested
     in context of past results.

     Budget accounts, staff,
     and specifically program/
     activities are aligned to
     support achieving program
     targets.

     Full budgetary cost is
     charged to mission accounts and
     activities. Cost of outputs and
     programs is integrated with
     performance in budget requests
     and execution.

     Agency has documented     Achievement of Some but not All Core    Has Any One of the Following
     program effectiveness. Analyses    Criteria; No Red Conditions.            Criteria:
     show how program outputs and
     policies affect desired
     outcomes. Agency systematically
     applies performance to budget
     and can demonstrate how program
     results inform budget decisions.

    ----------------------------------------------------------------------------------------------------------------