The following is a summary of five criteria  that can be used to determine the appropriate type of COO/CMO position  in a federal agency. Depending on these five criteria, there could  be several types of COO/CMO positions, including the types shown below. The existing deputy position could carry out the integration and business  transformation role. This type of COO/CMO might be appropriate in a  relatively stable or small organization. A senior-level executive who reports to the deputy, such as a principal  under secretary for management, could be designated to integrate key  management functions and lead business transformation efforts in the  agency. This type of COO/CMO might be appropriate for a larger  organization. A second deputy position could be created to bring strong focus to the  integration and business transformation of the agency, while the other  deputy position would be responsible for leading the operational policy  and mission-related functions of the agency. For a large and complex  organization undergoing a significant transformation to reform long- standing management problems, this might be the most appropriate type  of COO/CMO. Statutory term appointments currently exist for various senior-level  positions in a number of agencies, bureaus, commissions, and boards in  the federal government. In doing so, the implementation of any  approach should be determined within the context of the specific facts  and circumstances that relate to each individual agency. Appendix I: Objectives, Scope, and Methodology

The objectives for this study were to identify    criteria that can be used to determine the type of chief operating officer  (COO)/chief management officer (CMO) or similar position that ought to  be established in federal agencies and   strategies for implementing COO/CMO positions to elevate, integrate, and  institutionalize key management functions and business transformation  efforts in federal agencies. To identify these criteria and strategies, we (1) gathered information on  the experiences and views of officials at four organizations with  COO/CMO-type positions and (2) convened a Comptroller General’s forum  to gather insights from individuals with experience and expertise in  business transformation, federal and private sector management, and  change management. 21st Century Challenges: Transforming Government to Meet Current  and Emerging Challenges.
Why GAO Did This Study

Agencies across the federal government are embarking on large-scale organizational transformations to address 21st century challenges. One proposed approach to address systemic federal governance and management challenges involves the creation of a senior-level position--a chief operating officer (COO)/chief management officer (CMO)--in selected federal agencies to help elevate, integrate, and institutionalize responsibility for key management functions and business transformation efforts. GAO was asked to develop criteria and strategies for establishing and implementing COO/CMO positions in federal agencies. To do so, GAO (1) gathered information on the experiences and views of officials at four organizations with COO/CMO-type positions and (2) convened a forum to gather insights from individuals with experience in business transformation.

What GAO Found

A number of criteria can be used to determine the appropriate type of COO/CMO position in a federal agency. These criteria include the history of organizational performance, degree of organizational change needed, nature and complexity of mission, organizational size and structure, and current leadership talent and focus. Depending on these five criteria, there could be several types of COO/CMO positions, including: (1) the existing deputy position could carry out the integration and business transformation role--this type of COO/CMO might be appropriate in a relatively stable or small organization; (2) a senior-level executive who reports to the deputy, such as a principal under secretary for management, could be designated to integrate key management functions and lead business transformation efforts in the agency--this type of COO/CMO might be appropriate for a larger organization; and (3) a second deputy position could be created to bring strong focus to the integration and business transformation of the agency--this might be the most appropriate type of COO/CMO for a large and complex organization undergoing a significant transformation to reform long-standing management problems. Because each agency has its own set of characteristics, challenges and opportunities, the implementation of any approach should be determined within the context of the agency's specific facts and circumstances. Once the type of COO/CMO is selected, six key strategies can be useful in implementing such positions in federal agencies.