Our latest long-term budget simulations reinforce  the need for change in the major cost drivers—Social Security and health  care programs. In response to the emerging trends and long-term fiscal challenges the  government faces in the coming years, we have an opportunity to create  highly effective, performance-based organizations that can strengthen the  nation’s ability to meet the challenges of the 21st century and reach beyond  our current level of achievement. The federal government cannot accept  the status quo as a “given”—we need to reexamine the base of government  programs, policies, and operations. Balancing the Roles of the Congress and the Executive Branch in Developing Restructuring Proposals

Given the obvious case for reexamining the government’s structure, the  major issue for debate today is the question of whether and how to change  the Congress’ normal deliberative process for reviewing and shaping  executive branch restructuring proposals. The process may vary depending on the significance of  the changes sought. Therefore, in  contrast to the past “one-size-fits-all” approaches, in again granting  expedited reorganization authority to the President, the Congress may wish  to consider different tracks that allow for a longer period for review and  debate of proposals that include significant policy elements as opposed to  operational elements. Modern Management Practices Provide a Framework for Restructuring Proposals

Three years ago, I testified that the challenge for the federal government at  the start of the 21st century is to continue to improve and to translate the  management reforms enacted by the Congress in the 1990s into a day-to- day management reality across government. Process-oriented  ways of doing business will need to yield to results-oriented ones. There are six important elements to consider for a successful  reorganization—establishing clear goals, taking an integrated approach,  developing a comprehensive human capital strategy, selecting appropriate  service delivery mechanisms, managing the implementation, and providing  effective oversight. This is true for  both the initial design and the implementation. In considering  restructuring, it is important to focus on not just the present but the future  trends and challenges. The Congress has an important role to play—both in its  legislative and oversight capacities—in establishing, monitoring, and  maintaining progress to attain the goals envisioned by government  transformation and reorganization efforts. With changes in the executive branch, the Congress should  adapt its own organization in order to improve its efficiency and  effectiveness. Further, the President and the Congress may wish to consider  establishing a process (e.g., a commission), that provides for the  involvement of the key players and a means to help reach consensus on any  specific restructuring proposals that would be submitted for consideration  by the Congress.
Why GAO Did This Study

GAO has sought to assist the Congress and the executive branch in considering the actions needed to support the transition to a more high performing, results-oriented, and accountable federal government. At the Committee's request, GAO provided perspective on the proposal to reinstate the authority for the President to submit government restructuring plans to the Congress for expedited review.

What GAO Found

In view of the overarching trends and the growing fiscal challenges facing our nation, there is a need to consider the proper role of the federal government, how the government should do business in the future, and in some instances, who should do the government's business in the 21st century. The fundamental issue raised by the proposal to grant reorganization authority to the President is not whether the government's organization can and should be restructured, but rather, whether and how the Congress wishes to change the nature of its normal deliberative process when addressing proposals to restructure the federal government. Given current trends and increasing fiscal challenges, a comprehensive review, reassessment, and reprioritization of what the government does and how it does it is clearly warranted. This is especially vital in view of changing priorities and the compelling need to examine the base of government programs, policies, and operations since, given GAO's long-term budget simulations, the status quo is unsustainable over time. While the intent of such a review is desirable and some expedited congressional consideration may well be appropriate for specific issues, the Congress also has an important role to play in government reform initiatives, especially from an authorization and oversight perspective. In contrast to the past "one-size-fits-all" approaches in developing new executive reorganization authority, the Congress may want to consider different tracks for proposals that propose significant policy changes versus those that focus more narrowly on government operations. Further, Congress may want to consider establishing appropriate processes to ensure the involvement of key players, particularly in the legislative and executive branches, to help facilitate reaching consensus on specific restructuring proposals that would be submitted for consideration, should the Congress enact a new executive reorganization authority. Modern management practices can provide a framework for developing successful restructuring proposals. Such practices include: establishing clear goals, following an integrated approach, developing an effective human capital strategy, considering alternative program delivery mechanisms, and planning for both initial and long-term implementation issues to achieve a successful transformation. Furthermore, successful implementation will depend in part on continuing congressional oversight. The Congress could significantly enhance its efficiency and effectiveness by adapting its own organization to mirror changes in the executive branch.