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

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

The NOAA Leadership Seminar08.28.2007

2NOAA Leadership: Creating One NOAA

OverviewOverview

NOAA’s Mission & Vision

Current EnvironmentHow the World views NOAATransformationBusiness ModelBudget

Leadership

ChallengesRecapitalizationLabor RelationsExecution


NOAA’s MissionNOAA’s Mission


Eye On The Mission 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


NOAA’s VisionNOAA’s Vision


Eye On The Vision 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


NOAA OrganizationNOAA Organization


Fiscal Year 2006 Audit

Findings and Recommendations (NFRs)


Findings and Recommendations (NFRs)

Major Conclusions:Unqualified audit opinion last eight years.Personal Property, Construction Work In Progress, Reimbursable Agreements, and Grants recurring issues.

51

36

23

18

23

0

10

20

30

40

50

60

2002 2003 2004 2005 2006

NFR

s



Information Technology Security


Information Technology SecurityOIG Evaluation:

Good: Security Plans and Risk AssessmentsNot so Good: Testing Disaster Recovery

FY07 ActivitiesComplete Disaster Recovery Plan testing and implement Continuous Monitoring Authorizing Official review all IT Security PlansCertification and Accreditation current for all IT systems


Organizational Assessment

President’s Management AgendaThird Quarter


President’s Management AgendaThird QuarterHUMAN 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.


Organizational AssessmentOrganizational Assessment

Program YearScor

e Rating

Hydrology 2007 74 Moderately Effective

National Marine Fisheries Service

2007 72 Moderately Effective

Office of Marine & Aviation Operations


Pacific Coastal Salmon Recovery Fund


Navigation Service 2006 84 Moderately Effective

Ecosystem Research 2005 63 Adequate

Weather & Related Services


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

FY 2006 GPRA MeasuresPART Summary

Government-Wide Cumulative Distribution of

PART scores to date:

RatingPercent (and

Number)of Programs

Effective 17% (166)

Moderately Effective 30% (299)

Adequate 28% (276)

Ineffective 3% (27)

Results Not Demonstrated 22% (209)

13%

66%

8%

Exceeded target

Below target

Met target

Slightly Belowtarget

* Government-wide, SBIR PARTs are on hold with OMB



Funding Summary


Funding 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.


Transformation to “One NOAA”

Transformation to “One NOAA”

Holding Company

Ad Hoc

Subjective Decisions

Talk

Corporation

Process

Fact-based Decisions

Execution


NOAA “Business” ModelNOAA “Business” Model


NOAA Funding Trends(Constant Dollars in Billions)

NOAA Funding Trends(Constant Dollars in Billions)

2.1 2.2 2.3 2.4 2.3 2.3 2.2 2.3 2.5

0.80.9

0.8 0.81.0 1.0 1.1 0.9 0.8

0.1

0.1

0.2 0.1

0.1 0.1 0.10.1

0.1

0

0.5

1

1.5

2

2.5

3

3.5

4

Other

PAC

ORF

Other 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

PAC 0.8 0.8 1.0 1.0 1.1 0.9 0.8 0.8 0.9

ORF 2.1 2.2 2.3 2.4 2.3 2.3 2.2 2.3 2.5

FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 PB FY 08 House FY 08 Senate

Data Source: DOC Summary of enacted BA and DOC BIB Addendum for FY 08 PB

Total 3.1 3.1 3.4 3.5 3.5 3.3 3.1 3.2 3.5

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

Leadership


Leader’s 7 Essential Behaviors

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.


Life’s ParadoxesLife’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


Performance Measures

Performance Measures

Understandable and meaningful

Organizational culture — achievement important

Performance measures at several levels

Information guide to action to improve performance


Strategy … Metrics… Leaders … Actions

Strategy … Metrics… Leaders … Actions

Strategy

Mission

Goals

Stakeholders

MetricsReport

Rationalize Resources

Align Effort

Manage Accountabilities

Manage Processes

Manage Capabilities

Decide

Implement Strategy

Improve Performa

nce


ExecutionExecution

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 cultureTranslate visions and goals into tangible deliverables and actions.


ExecutionExecution

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.


NM

AO

NW

S

OA

R

NO

S

NM

FS

NESD

IS

Keys to Creating “One NOAA”


Remove the Stovepipe CultureImprove understanding of how Line/Staff Offices impact/benefit each other




Improve Communication


0

50

100

150

200

250

300

350

400

450

Million

s $

Requirements (Constr & Maint) ($M) 399 263 259

Current Program - Construction ($M) 108 57 80 160 252 164 102

Current Program - Maintenance ($M) 8 7 7 7 14 14 14

FY06 Enacted

FY07 Enacted

FY08 PresBud

FY09 DoC Submit

FY10 FY11 FY 12

Recapitalization Facilities Construction and

Maintenance

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


0

10

20

30

40

50

60

Mill

ions

$

Requirements ($M) 56.7 55.4 55.4

Current program ($M) 4.5 4.7 0.0 0.0 0.0 0.0 0.0

FY 06 Enacted

FY 07 Enacted

FY 08 Pres Bud

FY 09 NOAA Submit

FY 10 FY 11 FY 12

$168M shortfall

Recapitalization Aircraft Replacement

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



Recapitalization Fleet Replacement

Recapitalization Fleet Replacement

Lack of replacement ships…

ages the fleet and technology

increases maintenance costs

reduces effectiveness


Near Year Shortfalls havedelayed ship construction


Recapitalization Polar Orbiting Environmental

Satellites (POES + NPOESS)

Recapitalization Polar Orbiting Environmental

Satellites (POES + NPOESS)

$3,181

$418 $427 $446$354 $425 $462 $457

$2,202

478

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Million

s $

Current Program ($M) $3,181 $418 $427 $446 $354 $425 $462 $457 478 $2,202

FY05 and Prior

FY06 PB FY07 PB FY08 FY09 FY10 FY11 FY 12 FY 13Cost to

Complete*

* FY 09 DoC Budget Submission

$2.2B


Recapitalization Geostationary Orbiting

Environmental Satellites (GOES N-P, R)

Recapitalization Geostationary Orbiting

Environmental Satellites (GOES N-P, R)

$1,899

$335 $360 $359

$550

$795$879 $852

$3,066

835

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Million

s $

Current Program ($M) $1,899 $335 $360 $359 $550 $795 $879 $852 835 $3,066

FY 05 and Prior FY 06 PB FY 07 PB FY 08 FY 09 FY 10 FY 11 FY 12 FY 13Cost to

Complete*

* FY 09 DoC Budget Submission

$3.0B


NOAA’s Projected Satellite ProgramNOAA’s Projected Satellite Program

0

500

1,000

1,500

2,000

2,500

3,000

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Current Program NPOESS Follow-on GOES-Follow-On Other Missions Investment Opportunities


Labor RelationsLabor RelationsREQUIREMENT 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.


Labor RelationsLabor Relations

Changes in Working ConditionsFour Required Steps

Mgmt. decides on the particular changeMgmt. consults with WFMO to determine whether these changes rise to the level of whether notice is required to the unionMgmt. provides notice of change to the union – with WFMO concurrence on substance of noticeIf the union responds, Mgmt. consults with WFMO on all further correspondence – including the negotiation process


Labor RelationsLabor RelationsTypes 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?

Documents

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