Streamlining Management Control

Streamlining Management Control

What is the purpose of a management control system? In the private
sector, the answer is clear: make productivity advances aimed at
improving customer satisfaction while reducing costs and increasing
profits. In the federal government, past management control systems
often have had no connection to customer or cost improvements. They have
existed to uncover problems rather than prevent them and move toward
positive change. Based on the premise that workers waste resources,
commit thievery, and abuse privileges, these control systems have aimed
at compliance rather than service. As a result, they have totally over
shot the real target: customer needs coupled with appropriate cost
reductions.

The NPR's Accompanying Report spotlights a federal management control
system focused on compliance at an estimated cost of $35 billion a year.
That figure represents the salary of one out of every three federal
employees. Wouldn't most of us prefer to focus our efforts on improving
the services provided by our agencies or departments? Wouldn't that be
more productive and fulfilling than enforcing blind compliance to a
labyrinth of contradictory rules and regulations?

Every organization needs controls. The challenge is devising a control
system that focuses on customers and improved efficiency rather than
compliance for compliance sake. The NPR recommendations have set a
direction for change that is making management controls more customer
focused. Line employees and their immediate supervisors, the people who
provide services, are becoming more involved in the control system.
Because they work closest to the customers, they are the ones in the
best position to cut waste, prevent problems, make improvements, and
generate innovations. By doing a good job, line employees and their
immediate supervisors naturally provide the control and oversight needed
to improve customer satisfaction and reduce costs.

NPR recommendations also stress reducing layers of internal and external
management that stifle improvement and innovation.  Over the past year,
agencies have begun to redirect controls to support line workers and
managers. Administrators have started the process of drastically
reducing the quantity of detailed rules and regulations that prevent
customer satisfaction and cost reduction initiatives. Top level managers
are shifting from strict compliance monitoring to a role that is more
supportive of their line managers. Departments are starting to share
best practices examples and create response loops to improve oversight
while maintaining a customer focus.

Like all other reinvention issues, we cannot accomplish effective change
in management control systems without the active participation of
Congress. Department and agency heads are taking the lead in convincing
their Congressional oversight committees to eliminate the thousands of
redundant and unnecessary reports presently required. Besides saving
millions of dollars annually, this will allow the Congress to refocus
its oversight responsibility on key areas in tandem with the reinvention
process.  Over the past year, working together, we have made progress.
The President led the way with an executive order requiring agencies to
cut internal regulations in half. The response has been excellent. For
example, the Department of Veterans Affairs has already eliminated
around 11,000 pages of internal directives. The Office of Management and
Budget has drafted revised government-wide internal control guidelines
that it will circulate for comment this fall. Agency inspectors general
are reinventing their role in the control process to become less
adversarial and more collaborative. And the Congress has responded by
considering legislation that would either eliminate or consolidate some
500 congressional reports.

Your participation in this Electronic Open Meeting will go a long way
toward energizing, refining, and implementing recommendations to
streamline management controls. During the next two weeks you'll be able
to connect, engage, and network with participants across the federal
workforce. By sharing experiences and ideas on government reinvention,
this Electronic Open Meeting will help forge the enterprising and
pragmatic solutions needed to create a government that works better and
costs less.