These key practices are to    ensure that top leadership drives the transformation,    establish a coherent mission and integrated strategic goals to guide the  transformation,  focus on a key set of principles and priorities at the outset of the  transformation,    set implementation goals and a time line to build momentum and show  progress from day one,    dedicate an implementation team to manage the transformation    use the performance management system to define responsibility and  ensure accountability for change,    establish a communication strategy to create shared expectations and  report related progress,  involve employees to obtain their ideas and gain their ownership for  the transformation, and    build a world-class organization that continuously seeks to implement  best practices in processes and systems in areas such as information  technology, financial management, acquisition management, and  human capital. Today, we continue to be encouraged by the progress that the FBI has  made in some areas as it continues its transformation efforts. Specifically  worthy of recognition are the commitment of Director Mueller and senior-  level leadership to the FBI’s reorganization; the FBI’s communication of  priorities; the implementation of core reengineering processes to improve  business practices and assist in the bureau’s transformation efforts; the  dedication of an implementation team to manage the reengineering efforts;  the development of a strategic plan and a human capital plan; the efforts to  involve employees in the strategic planning and reengineering processes;  and the FBI’s efforts to realign its activities, processes, and resources to  focus on a key set of principles and priorities. At that time it was  anticipated that the plan would be completed by the start of fiscal year  2004. Overall we found the plan has some important strengths as well as some  areas in which improvements could be made. Strategic Plan Could Be Improved by Discussing Other Key Elements

Although the FBI has addressed several key elements in its strategic plan,  the plan needs more information on other elements of strategic planning  that we have identified as significant to successful achievement of an  organization’s mission and goals. FBI officials indicated that some of these  elements are available in other documents and were not included in the  plan for specific reasons. FBI Has Developed a Strategic Human Capital Plan

In prior testimony, we highlighted the importance of the development of a  strategic human capital plan to the FBI’s transformation efforts, noting  that strategic human capital management is the centerpiece of any  management initiative, including any agency transformation effort. This plan contains many of the  principles that we have laid out for an effective human capital system. As yet, the performance management system for  the bulk of FBI personnel remains inadequate to identify meaningful  distinctions in performance. Nevertheless, the bureau’s longstanding approach to managing IT is not  fully consistent with leading practices, as has been previously reported by  us and others. The effect of this, for example, can be seen in the cost and  schedule shortfalls being experienced on Trilogy. A prime  example is Trilogy, the FBI’s ongoing effort to, among other things,  modernize its systems infrastructure and investigate case management  applications. FBI Continues to Realign Staff Resources to Address Counterterrorism- Related Priorities

As we pointed out in our June 2003 testimony and our follow-up letter to  the FBI in September 2003, a key element of the FBI’s reorganization and  successful transformation is the realignment of resources to better ensure  focus on the highest priorities. Since that time, as a result of the staff  reprogrammings and funding for additional special agent positions  received through various appropriations, the FBI staffing levels allocated  to the counterterrorism, counterintelligence, and cyber program areas  have increased to about 36 percent and now represent the single largest  concentration of FBI resources and the biggest decrease is in organized  crime and drugs. This information could help  prioritize work and manage scarce resources.
Why GAO Did This Study

The September 11, 2001, terrorist attacks precipitated a shift in how the FBI uses its investigative resources to prevent future terrorist incidents. The attacks led to the FBI's commitment to reorganize and transform itself. Today's testimony discusses the FBI's progress in carrying out its transformation process. Specifically, it addresses FBI's (1) progress in developing a comprehensive transformation plan; (2) efforts to update its strategic plan; (3) development of a strategic human capital plan; (4) information technology management leadership and practices; and (5) realignment of staff resources to priority areas and the impact of the realignments on the FBI's drug and other criminal investigation programs.

What GAO Found

We commend the FBI for its progress in some areas of its transformation efforts since we last testified on this subject in June 2003. We believe that commitment from the top, a dedicated implementation team, involvement of employees in the process, and the achievement of key milestones are encouraging signs of progress. However, we continue to encourage the development of a comprehensive transformation plan that would consolidate the crosswalks between the various aspects of transformation. This could help management oversee all aspects of the transformation. The FBI's strategic plan has been completed. Overall we found the plan has important strengths as well as some areas in which improvements could be made. For example, the plan includes key elements of successful strategic plans (i.e. a comprehensive mission statement and results-oriented, longterm goals and objectives.). However, the plan is missing some elements that could have made it more informative. Officials advised us that some of these elements are available elsewhere (i.e. lists of stakeholders and performance measures). The absence of these elements makes the plan less comprehensive and useful. The FBI has also developed a strategic human capital plan that contains many of the principles that we have laid out for an effective human capital system (i.e. the need to fill identified skill gaps by using personnel flexibilities). However, the FBI has yet to hire a human capital officer to manage the implementation of this process and the performance management system for the bulk of FBI personnel remains inadequate to discern meaningful distinctions in performance. The FBI recognizes the importance of information technology (IT) as a transformation enabler, making it an explicit priority in its strategic plan and investing hundreds of millions of dollars in initiatives to expand its systems environment and thereby improve its information analysis and sharing. However, FBI's longstanding approach to managing IT is not fully consistent with the structures and practices of leading organizations. A prime example of the consequences of not employing these structures and practices is the cost and schedule shortfalls being experienced on Trilogy, the centerpiece project to modernize infrastructure and case management applications. Recent FBI proposals, plans, and initiatives indicate that it understands its management challenges and is focused on addressing them. Another key element of the FBI's transformation is the realignment of resources to better focus on the highest priorities--counterterrorism, counterintelligence and cyber investigations. The FBI resources allocated to priority areas continue to increase and now represent its single largest concentration of field agent resources--36 percent of its fiscal year 2004 field agent positions.