[Federal Register Volume 80, Number 243 (Friday, December 18, 2015)]
[Presidential Documents]
[Pages 79225-79229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32060]



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Vol. 80

Friday,

No. 243

December 18, 2015

Part IV





The President





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Executive Order 13714--Strengthening the Senior Executive Service
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  Federal Register / Vol. 80, No. 243 / Friday, December 18, 2015 / 
Presidential Documents  

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 Title 3--
 The President

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                Executive Order 13714 of December 15, 2015

                
Strengthening the Senior Executive Service

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, in order to strengthen the recruitment, 
                hiring, and development of the Federal Government's 
                senior executives; I hereby order as follows:

                Section 1. Policy. It is in the national interest to 
                facilitate career executive continuity between 
                administrations; to increase senior leadership 
                attention to, and involvement in, executive 
                recruitment; to reduce unnecessary burdens on 
                applicants for executive positions; and to efficiently 
                document demonstrated executive experience. 
                Furthermore, it is imperative to periodically explore 
                and promote new selection methods that effectively and 
                efficiently identify the most capable and talented 
                candidates for executive leadership positions to 
                enhance the breadth and diversity of experiences among 
                our Federal executives; to better support, recognize, 
                and reward our executives, especially our top 
                performers; and to strengthen executive accountability, 
                all while maintaining a system that is focused on the 
                public interest and free from improper political 
                influence. An important aspect of strengthening our 
                Senior Executive Service (SES) members is valuing the 
                work they do every day, rewarding excellence, 
                professionalism, and outstanding achievement through 
                special act awards, Presidential Rank Awards, and other 
                non-monetary and honorary awards. Consistent with the 
                requirements of Executive Order 13583 of August 18, 
                2011 (Establishing a Coordinated Government-Wide 
                Initiative to Promote Diversity and Inclusion in the 
                Federal Workforce), and with merit-based principles, 
                this order continues to support executive departments 
                and agencies (agencies) to develop and implement a 
                comprehensive, integrated, and strategic focus on 
                diversity and inclusion as a key component of the 
                recruitment, hiring, retention, and development of 
                their SES cadre. Pursuing these goals will 
                significantly improve the Federal Government's ability 
                to serve the American people. Unless otherwise noted, 
                this order applies to career members of the SES.

                    Section 2 of this order establishes, under the 
                President's Management Council (PMC), a Subcommittee to 
                advise the Office of Personnel Management (OPM), the 
                PMC, and the President on senior executive matters, 
                help monitor execution of an important set of executive 
                reforms contained in section 3 of this order, and help 
                keep the Federal Government's executive management 
                practices current and effective. In order to identify 
                and maximize the use of best practices, requirements in 
                sections 3(b)(i)-(iv) of this order will be implemented 
                in three phases, with Phase I consisting of seven 
                agencies, which will execute those reforms in fiscal 
                year (FY) 2016; Phase II consisting of seven agencies, 
                which will execute those reforms in FY 2017; and Phase 
                III consisting of all other agencies, which will 
                execute those reforms in FY 2018.

                Sec. 2. Establishment of PMC Subcommittee to Strengthen 
                the Senior Executive Service. There is established the 
                PMC Subcommittee to Strengthen the Senior Executive 
                Service (Subcommittee) to inform and support 
                Government-wide priorities for improved management of 
                senior executives identified by the Deputy Director for 
                Management of the Office of Management and Budget (OMB) 
                in consultation with the Director of OPM. The 
                Subcommittee shall consist of five members of the PMC: 
                the Deputy Director for Management of OMB, the Director 
                of OPM, and three other members of the PMC. The 
                Subcommittee will be advised by at least two career 
                members of the SES

[[Page 79226]]

                to be determined by the members of the Subcommittee, 
                and shall collaborate with the Chief Human Capital 
                Officers Council. Expressions of interest to serve on 
                the Subcommittee will be solicited, and final 
                selections will be made by the Deputy Director for 
                Management of OMB in consultation with the Director of 
                OPM. The Subcommittee will advise OPM, members of the 
                PMC, and the President on ways to strengthen and 
                improve the SES workforce, as outlined in this order. 
                In addition, it will identify any Government-wide 
                obstacles it perceives to executive management, assist 
                OPM in facilitating career executive continuity between 
                administrations, and facilitate communication among the 
                SES cadre.

                Sec. 3. Requirements. Under the direction, or, in the 
                case of sections 3(a)(i) and 3(b)(ii) of this order, 
                the guidance, of the Director of OPM, and in 
                consultation with OMB and the PMC Subcommittee, 
                agencies shall undertake the following actions:

                    (a) Actions for Immediate Government-wide 
                Implementation.

(i) Starting in FY 2017, agencies should limit their aggregate spending on 
agency performance awards for SES and Senior Level (SL) and Senior 
Scientific or Professional (ST) employees to 7.5 percent of aggregate SES 
and SL/ST salaries respectively. OMB and OPM shall undertake a review of, 
and revise as appropriate, their current guidance regarding aggregate 
spending on such awards. In addition, agencies should allocate awards in a 
manner that provides meaningfully greater rewards to top performers. Within 
120 days of the date of this order, OPM shall issue, as appropriate, 
additional guidance regarding the distribution of such awards.

(ii) The heads of agencies with SES positions that supervise General 
Schedule (GS) employees shall implement policies, as permitted by and 
consistent with applicable law and regulation, for initial pay setting and 
pay adjustments, as appropriate, for career SES appointees to result in 
compensation exceeding the rates of pay, including locality pay, of their 
subordinate GS employees. Similar policies shall be implemented by heads of 
agencies for Senior Professional (i.e., SL or ST) employees that supervise 
GS employees. Such policies and practices support, recognize, and reward 
agency executives, especially top performers, in a manner commensurate with 
their roles, responsibilities, and contributions, and may increase the 
competitiveness of SES positions with comparable positions outside of 
Government.

(iii) Within 90 days of the date of this order, OPM shall evaluate the 
current Qualifications Review Board (QRB) process and issue guidance to 
agencies about materials that would be acceptable for QRB consideration and 
that will serve as an alternative or replacement to the current lengthy 
essay requirement for QRB submission, which may deter qualified applicants 
for SES positions or put an additional burden on human resources staff. The 
guidance shall also advise agencies about ways to streamline their initial 
application requirements for SES positions, including evaluation of 
options, such as allowing individuals to apply by only submitting a resume-
based application and any additional materials necessary to determine 
relevant qualifications, consistent with the new QRB submission 
requirements.

(iv) Within 120 days of OPM issuing the guidance described in section 
3(a)(iii) of this order, the heads of agencies with SES positions shall 
examine the agency's career SES hiring process and make changes to the 
process to make it more efficient, effective, and less burdensome for all 
participants. Agencies shall simplify the initial application requirements 
for SES positions consistent with the guidance issued in section 3(a)(iii) 
of this order, and should only request critically necessary technical 
qualifications, with the goal of minimizing requirements that may deter 
qualified applicants from applying. Agencies shall also monitor time to 
hire of SES positions, and identify appropriate process improvements or 
other changes that can help reduce time to hire while ensuring high quality 
of hires.

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(v) By May 31, 2016, the heads of agencies with 20 or more SES positions 
shall develop and submit to OPM a 2-year plan to increase the number of SES 
members who are rotating to improve talent development, mission delivery 
and collaboration. While agency specific targets will not be required, this 
order establishes a Government-wide goal of 15 percent of SES members 
rotating for a minimum of 120 days (including to different departments, 
agencies, subcomponents, functional areas, sectors, and non-federal 
partners) during FY 2017, and thereafter, in order to ensure the mobility 
of the corps while also maintaining stability of operations. Within 45 days 
of the date of this order, OPM shall issue guidance for implementation of 
section 3(a)(v) of this order. OPM shall evaluate the percentages set forth 
in this subsection on an ongoing basis and make adjustments as necessary 
and appropriate. These plans shall take into consideration the policy 
priorities of the agency, agency needs and rules in the context of 
administration transitions, needs identified in agency hiring plans and 
succession plans, the development opportunities listed in individuals' 
Executive Development Plans (EDP), and the Federal Government's interest in 
cultivating generalist executives with broad and diverse experiences who 
can lead a variety of organizations. These plans shall build on existing 
succession management processes and those established in section 3(b)(i) of 
this order to ensure high potential and top performers have an opportunity 
to cycle through rotations. These plans shall also incorporate, as 
appropriate, flexibilities agencies have such as the Intergovernmental 
Personnel Act (implemented in 5 CFR part 334) to encourage SES members to 
pursue temporary assignments to State and local governments, colleges and 
universities, tribal governments, and other eligible organizations, and to 
better understand the impact of the Federal Government's work on those it 
serves. Finally, these plans shall include an assessment of the degree to 
which these rotation assignments achieve the desired goals for the 
individual and agency.

                    (b) Actions for Phased Implementation. Under the 
                direction, or, in the case of section 3(b)(ii) of this 
                order, the guidance, of the Director of OPM, in 
                consultation with OMB and the PMC Subcommittee, the 
                reforms listed in sections 3(b)(i)-(iv) of this order 
                shall be implemented by agencies on the following 
                schedule: the Secretaries of Defense, Energy, Health 
                and Human Services, Housing and Urban Development, and 
                Veterans Affairs; the Administrator of General 
                Services; and the Director of OPM shall implement these 
                reforms by September 30, 2016; the Secretaries of 
                Agriculture, Education, Labor, and Transportation, and 
                the Administrators of the National Aeronautics and 
                Space Administration, the Environmental Protection 
                Agency, and the Small Business Administration shall 
                implement these reforms by September 30, 2017; the 
                Secretaries of State, the Treasury, the Interior, 
                Commerce, and Homeland Security, the Attorney General, 
                and the Administrator of the U.S. Agency for 
                International Development, as well as the Directors of 
                OMB and the National Science Foundation, shall 
                implement these reforms by September 30, 2018. By 
                October 1 of each year, OPM shall issue additional 
                guidance after each phase of implementation that 
                reflects lessons learned and any adjustments to these 
                reforms based on the agencies that have implemented 
                them. By the respective date specified above, the heads 
                of agencies shall:

(i) Establish an annual talent management and succession planning process 
to assess the development needs of all SES members, and SL and ST employees 
as appropriate, to inform readiness decisions about hiring, career 
development, and executive reassignments and rotations. These assessments 
shall include input from each executive, as well as the executive's 
supervisor, and shall be used to recommend development activities and 
inform the organization's succession planning, decisions about duty 
assignments, and agency hiring plans;

(ii) Proactively recruit individuals for vacant SES positions and regularly 
review those recruitment efforts at the Deputy Secretary (or direct 
designee) level on at least a quarterly basis, consistent with existing 
rules and

[[Page 79228]]

regulations. Establish a mechanism to track, and raise for appropriate 
senior-level attention, information about each position that agencies are 
seeking to fill, including, at a minimum, source of the recruitment, 
number, quality and diversity (as available) of applicants, source of 
applicants (subcomponent, agency or non-government), and timeliness of the 
hiring process. Use the talent management and succession planning process 
described in section 3(b)(i) of this order and agency hiring plans to 
inform these recruitment efforts; and develop a tailored outreach strategy 
for proactive recruitment for key strategic positions;

(iii) Require supervisors of executives in their agency to work with their 
subordinate executives to update EDPs for each executive required by 5 CFR 
part 412.401, to include at least one developmental activity annually and 
at least one leadership assessment involving employee feedback (for 
example, 360 degree-type reviews) every 3 years to inform each executive's 
developmental needs. In addition, non-career SES and equivalent appointees 
should also have one leadership assessment during their first 2 years, and 
additional assessments every 3 years thereafter; and

(iv) Establish a formal Executive Onboarding Program informed by OPM's 
Enhanced Executive Onboarding Model and Government-Wide Executive 
Onboarding Framework, which shall provide critical support and guidance to 
executives through their first year of service in new positions, consistent 
with guidance to be issued by OPM no later than 60 days after the date of 
this order. Onboarding shall be provided for career and non-career SES, SL 
and ST employees, and SES-equivalent positions.

                Sec. 4. Additional Implementation Considerations. (a) 
                Actions for Agencies with SES-Equivalent Positions. 
                Certain agencies have independent authorities enabling 
                them to establish positions that are equivalent to SES 
                or Senior Professional positions, or an executive 
                personnel system that includes such positions. Whether 
                the positions or employment systems are established in 
                title 5 (for example, FBI/DEA SES) or in other titles 
                of the United States Code (for example, Senior Foreign 
                Service, Defense Intelligence SES, Senior National 
                Intelligence Service), the agency head shall determine 
                the extent to which the agency implements policies and 
                processes to support objectives identified in sections 
                3(a) and 3(b) of this order for such positions 
                consistent with the agency's authorities and purposes 
                for which the law provides them, with such consultation 
                with the Director of OPM, OMB, and the PMC Subcommittee 
                as the agency may require.

                    (b) Agency Status and Reporting. Within 45 days of 
                the date of this order, OPM will issue guidance, 
                concurrent with guidance in section 3(a)(v) of this 
                order, that defines regular reporting on the status of 
                each agency's implementation of the provisions in this 
                order.

[[Page 79229]]

                Sec. 5. General Provisions. (a) Nothing in this order 
                shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of OMB relating to budgetary, 
administrative, or legislative proposals.

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.
                    (c) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    December 15, 2015.

[FR Doc. 2015-32060
Filed 12-17-15; 11:15 am]
Billing code 3295-F6-P