	Adoption of Key Management Practices Promoted Greater Use of Performance Information at CMS

In 2000, significantly fewer managers at CMS—then known as the Health  Care Financing Administration—reported using performance information  for various management decisions, as compared to their counterparts in  the rest of government. Between our 2000 and 2007 surveys, however,  CMS showed one of the largest average increases in the percentage of  managers who reported using performance information for certain  decisions. Our analysis of CMS survey results,  management interviews, and agency policies, performance reports, and  other relevant documents indicated that the adoption of key management  practices contributed to this improvement. 2). 3). Developing Analytic Capacity to Use Performance Information

Our survey results and interviews with several CMS officials indicate that  the agency also took steps to develop their staff’s capacity to use  performance information, such as investing in improved data systems and  offering increased training opportunities on a range of topics related to  performance planning and management. FEMA and Interior Were Hindered in Using Performance Information for Decision Making by Weak or Inconsistent Application of Key Management Practices

Just as the adoption of key management practices can facilitate greater  use of information and a greater focus on results, the absence of these  practices can hinder widespread use. Fewer managers at FEMA and  Interior reported making extensive use of performance information for  decision making compared to managers at other agencies. Survey results,  interviews with senior level-officials and regional and program managers,  and a review of policies and other documents related to performance  planning and management at both agencies showed that inconsistent use  of these practices contributed to this condition. Despite the challenges facing FEMA and Interior, we also observed  various initiatives and program areas within the agencies where leaders  were committed to increasing the use of performance information; and  were demonstrating that commitment by communicating the importance  of using data to identify and solve problems, involving their managers in  efforts to develop useful measures, and connecting individual performance  with organizational results. Our report contains recommendations to the Secretary of the Department  of Homeland Security (DHS) for FEMA and the Secretary of the Interior,  designed to build upon the positive practices we identified within these  agencies. Finally, to FEMA, Interior, and NPS, we made recommendations  intended to improve the visibility of agency leadership’s commitment to  using performance information in decision making. Both DHS and Interior  generally agreed with these recommendations. Building an Enduring Results-Oriented and Collaborative Culture Requires Demonstrated Leadership Commitment from the President and Congress

As we have noted in the past, the President and Congress both have  unique and critical roles to play in demonstrating their commitment to  improving federal agency performance results. Both OMB and Congress  can send strong messages to agencies that results matter by articulating  expectations for individual agency performance and following up to  ensure that performance goals are achieved. At the same time, they also  need to address performance problems in the areas of government that  require the concerted efforts of multiple agencies and programs. The President and OMB Can Promote Greater Use of Performance Information Governmentwide

The President can send a signal to federal managers that using  performance information is critical for achieving results and maximizing  the return on federal funds invested by selecting and focusing his attention  on achieving certain critical goals, such as creating or retaining jobs  through investments under the American Recovery and Reinvestment Act  of 2009. In addition to the annual performance plan, a governmentwide strategic  plan could identify long-term goals and strategies to address issues that  cut across federal agencies. Appendix I: Agency Ranking Based on 2007 Survey Results on Use of Performance Information

	Rank

National Aeronautics and Space Administration Department of Housing and Urban Development Department of the Treasury (excluding Internal Revenue Service)
Centers for Medicare & Medicaid Services United States Agency for International Development Department of Agriculture (excluding Forest Service)
Department of Homeland Security (excluding Federal Emergency Management Agency)
Department of Transportation (excluding Federal Aviation Administration)
Department of Health and Human Services (excluding Centers for Medicare & Medicaid Services)
This is a work of the U.S. government and is not subject to copyright protection in the  United States.
Why GAO Did This Study

Since 1997, periodic GAO surveys indicate that overall, federal managers have more performance information available, but have not made greater use of this information for decision making. To understand the barriers and opportunities for more widespread use, GAO was asked to (1) examine key management practices in an agency in which managers' reported use of performance information has improved; (2) look at agencies with relatively low use of performance information and the factors that contribute to this condition; and (3) review the role the President and Congress can play in promoting a results-oriented and collaborative culture in the federal government. This testimony is primarily based on GAO's report, Results-Oriented Management: Strengthening Key Practices at FEMA and Interior Could Promote Greater Use of Performance Information, which is being released today. In this report, GAO made recommendations to the Departments of Homeland Security (DHS) and the Interior for improvements to key management practices to promote greater use of performance information at FEMA, the National Park Service, Bureau of Reclamation, as well as at Interior. Both DHS and Interior generally agreed with these recommendations. The testimony also draws from GAO's extensive prior work on the use of performance information and results-oriented management.

What GAO Found

GAO's prior work identified key management practices that can promote the use of performance information for decision making to improve results, including: demonstrating leadership commitment; aligning agency, program, and individual performance goals; improving the usefulness of performance information; building analytic capacity; and communicating performance information frequently and effectively. The experience of the Centers for Medicare & Medicaid Services (CMS) illustrates how strengthening these practices can help an agency increase its use of performance information. According to GAO's most recent 2007 survey of federal managers, the percentage of CMS managers reporting use of performance information for various management decisions increased by nearly 21 percentage points since 2000--one of the largest improvements among the agencies surveyed. CMS officials attributed this positive change to a number of the key practices, such as the agency's leaders communicating their commitment to using performance information to drive decision making. Conversely, the experiences of the Department of the Interior (Interior) and the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security indicated that the absence of such commitment can discourage managers and their staff from using performance information. According to GAO's 2007 survey, Interior and FEMA ranked 27 and 28, respectively, out of 29 agencies in their reported use of performance information for various management functions. Based on further survey data analysis, reviews of planning, policy, and performance documents, and management interviews, GAO found that inconsistent application of key practices at FEMA and Interior--such as routine communication of how performance information influences decision making--contributed to their relatively low survey scores. While both FEMA and Interior have taken some promising steps to make their performance information both useful and used, these initiatives have thus far been limited. The President and Congress also have unique and critical roles to play by driving improved federal agency performance. By focusing attention on certain high-level goals and tracking agency performance, the President and the Office of Management and Budget (OMB) can send a message that using performance information is critical for achieving results and maximizing the return on federal funds invested. Through its oversight, Congress can also signal to agencies that results matter by articulating performance expectations for areas of concern and following up to ensure that performance goals are achieved. The President and Congress can also play a role in improving government performance in areas that require the concerted efforts of multiple agencies and programs to address, such as preparing for and responding to a pandemic influenza. A governmentwide strategic plan could support collaborative efforts by identifying long-term goals and the strategies needed to address crosscutting issues.