Introducing FSA's Budget and Performance Management System ...

Introducing FSA’s Budget and Introducing FSA’s Budget and Performance Management System Performance Management System (BPMS) with a New Strategic Plan(BPMS) with a New Strategic Plan

……for better decision making and accountability to citizens!for better decision making and accountability to citizens!

April 14, 2005

Karen Malkin, DirectorStrategic Performance and Evaluation Staff

Dennis Taitano, DirectorBudget Division

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What is the Farm Service Agency?What is the Farm Service Agency?Farm Service Agency (FSA) is a Farm Service Agency (FSA) is a major agency of the U.S. Department major agency of the U.S. Department of Agriculture.of Agriculture.

FSA was created in 1994 by FSA was created in 1994 by incorporating the commodity and incorporating the commodity and conservation programs of the former conservation programs of the former Agricultural Stabilization and Agricultural Stabilization and Conservation Service (ASCS) and Conservation Service (ASCS) and the lending programs of the Farmers the lending programs of the Farmers Home Administration (FmHA).Home Administration (FmHA).

The Agency’s name has changed over the years, however, its The Agency’s name has changed over the years, however, its relationship with farmers and ranchers dates back to the relationship with farmers and ranchers dates back to the 1930s. Serving farmers and ranchers is a major component 1930s. Serving farmers and ranchers is a major component of USDA’s mission.of USDA’s mission.

Cleveland, 1940

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FSA Business LinesFSA Business LinesFSA delivers a wide variety of programs to over FSA delivers a wide variety of programs to over 2.2 million2.2 million registered agricultural producers. registered agricultural producers. Farm commodity programsFarm commodity programs Farm credit -- ownership, operating and Farm credit -- ownership, operating and

emergency loans emergency loans Conservation and environmental programsConservation and environmental programs Emergency and disaster assistanceEmergency and disaster assistance Domestic and international food assistanceDomestic and international food assistance International export credit programsInternational export credit programs

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FSA ProgramsFSA Programs

FSA Programs are FSA Programs are legislated by:legislated by:

Farm BillFarm Bill

Annual AppropriationsAnnual Appropriations

Disaster and Emergency Disaster and Emergency ActsActs

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Program DeliveryProgram Delivery

Agricultural producers apply Agricultural producers apply for benefits and service from for benefits and service from their local USDA Service their local USDA Service Center.Center.

FSA has over 2,400 Service FSA has over 2,400 Service Centers nationwide, including Centers nationwide, including local offices in Puerto Rico local offices in Puerto Rico and Guam.and Guam.

FSA has 51 State Offices, FSA has 51 State Offices, including Puerto Rico.including Puerto Rico.

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Decentralization & Local GovernanceDecentralization & Local Governance

FSA workforce = 17,000 Federal and non-FSA workforce = 17,000 Federal and non-Federal employeesFederal employees

State and local State and local county-elected committeescounty-elected committees oversee the delivery of FSA programs.oversee the delivery of FSA programs.

Committee system and local governance sets Committee system and local governance sets FSA apart.FSA apart.

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Link program results to budget requests.Link program results to budget requests. Dismantle existing “stove pipes.”Dismantle existing “stove pipes.” Streamline business processes.Streamline business processes. Improve accountability.Improve accountability. Align resources effectively.Align resources effectively. Improve employee engagement.Improve employee engagement. Improve customer service & satisfaction.Improve customer service & satisfaction. It’s good business!It’s good business! ““BBetter etter PPerformance erformance MMakes akes SSense!”ense!”

Why is FSA Seeking to Transform?Why is FSA Seeking to Transform?

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TO

Delivering and Monitoring Results

Horizontal (i.e., flatter)

Employee Empowerment

Working in Matrixed Teams

Forming Partnerships

Sharing Knowledge

Managing Risk

Constructive Labor/Management Relations

Embracing and Leveraging New Technology

Organizational Issues Facing Agencies Organizational Issues Facing Agencies Striving to TransformStriving to Transform

FROM

Delivering and Monitoring Outputs

Hierarchical

Micro-management

Working in Stovepipes

Protecting Turf

Hoarding Knowledge

Avoiding Risk

Adversarial Labor/Management Relations

Avoiding New Technology

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BPMSBPMS is management tool to facilitate FSA's is management tool to facilitate FSA's transformationtransformation to more performance-based, to more performance-based, results-focused agency.results-focused agency.

Links and integrates FSA's budget, cost, and Links and integrates FSA's budget, cost, and performance management information. performance management information.

Begins with Begins with newnew Fiscal Years 2005 – 2011 Fiscal Years 2005 – 2011 Strategic Plan.Strategic Plan.

“ “What gets measured gets done What gets measured gets done ANDAND funded!”funded!”

What is BPMS?What is BPMS?

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Key Key ElementsElements

BPMS

Strategic Plan Framework

Systems & Technology

• Reporting & Budgeting

• Finance & Accounting

• Program Management – Program Assessment

Rating Tool (PART)

• Other (e.g., Human Resources, Procurement)

Performance Management

• Planning & Budgeting

• Cost & Performance

• Governance & Accountability

• Human Capital Plan

People – Processes - Systems

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Budget and Performance Management System Budget and Performance Management System

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BPMS Core Team Strategic Performance & Evaluation

Staff Director, Co-Chair Budget Director, Co-Chair Senior Managers:

Farm Programs Farm Loan Programs Commodity Operations Field Operations External Affairs Civil Rights

Key Advisors Information Technology Division Economic and Policy Analysis

Staff Financial Management Division Human Resources Division State and County Offices

FSA Administrator

Associate Administrator for Operations and Management

BPMS Management StructureBPMS Management Structure

Associate Administrator for Programs

Director, Office of Business and Program Integration

Director, Strategic Performance and Evaluation Staff

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Six full-day external stakeholder meetings in Omaha, Six full-day external stakeholder meetings in Omaha, Sacramento, and Washington, D.CSacramento, and Washington, D.C..

Input from 250 External Stakeholders:Input from 250 External Stakeholders:

Farmers and ranchersFarmers and ranchers

Conservation and environmental groupsConservation and environmental groups

State and Federal agenciesState and Federal agencies

Commodity groups and trade associationsCommodity groups and trade associations

Community-based and civil rights organizationsCommunity-based and civil rights organizations

Engaging External StakeholdersEngaging External Stakeholders

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Photos Courtesy of USDA

FSA FY 2005-2011 Strategic PlanFSA FY 2005-2011 Strategic Plan

OBJECTIVE 3.1

Improving Conservation Practices______________________________

PERFORMANCE MEASURESM1 Maintain or increase % of acres in

compliance with highly erodible land and wetland provisions.

M2 Increase % of conservation acres with invasive species controls.

OBJECTIVE 3.2

Targeting Lands to Maximize Conservation Benefits

_______________________________

PERFORMANCE MEASURESM1 Increase acres managed under

Continuous Conservation Reserve Program (CRP) sign-up.

M2 Increase general sign up acres in priority areas.

M3 Reduce average processing time of conservation offers through partnerships and technology:

- FSA time*- partner time*.

OBJECTIVE 3.3

Mitigating Adverse ImpactsFrom Agricultural Production

_______________________________

PERFORMANCE MEASURESM1 Increase CRP acres of riparian and grass

buffers.

M2 Increase % of CCC sites where remediation is implemented.

M3 Increase CRP restored wetlands acres. * Asterisk denotes efficiency

measure.

ENDOUTCOMES

Strategic Goal 3 Conserving Natural Resources and Enhancing the Environment

END OUTCOME 1

Quality Soil ____________________

INDICATOR• Reduced erosion rates.

END OUTCOME 2

Quality Water_____________________

INDICATOR• Reduced ground and

surface water contamination.

END OUTCOME 4

Quality Air_____________________

INDICATOR

• Increased tons of carbon dioxide sequestered.

END OUTCOME 3

Quality Wildlife Habitat_____________________

INDICATOR

• Increased populations of targeted species.

INTERMEDIATE OUTCOMES

PRODUCTS and SERVICES26

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Three Societal Strategic Goals – High Level

FSA plays a role in achievement of these societal goals, but Agency is not solely responsible for end outcomes.

Strategic goals are relevant beyond FSA – USDA and many other agencies and private entities play roles.

End Outcomes and Indicators

ENDOUTCOMES

Strategic Goal 3Conserving Natural Resources and Enhancing the Environment

END OUTCOME 1

Quality Soil____________________


END OUTCOME 2

Quality Water_____________________



END OUTCOME 4

Quality Air_____________________

INDICATOR


END OUTCOME 3


INDICATOR


• FSA

• Environmental Protection Agency

• Natural Resources Conservation Service

• FSA



• U.S. Department of the Interior

Other Government (Federal, State and Local) Agencies and Nongovernmental Organizations

FEDERAL AGENCIES RESPONSIBLE FOR SUPPORTING EACH OUTCOME

• FSA




• National Oceanic and Atmospheric Administration

• FSA





ENDOUTCOMES


END OUTCOME 1

Quality Soil____________________


END OUTCOME 2

Quality Water_____________________



END OUTCOME 4

Quality Air_____________________

INDICATOR


END OUTCOME 3


INDICATOR


• FSA



• FSA




Other Government (Federal, State and Local) Agencies and Nongovernmental Organizations

FEDERAL AGENCIES RESPONSIBLE FOR SUPPORTING EACH OUTCOME

• FSA





• FSA





Example Showing

Interagency Responsibilities

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End Outcomes and IndicatorsEnd Outcomes and Indicators

Indicators with End Outcomes are measured Indicators with End Outcomes are measured every 3 years by reviewing relevant statistics to every 3 years by reviewing relevant statistics to see trends. see trends.

Indicators areIndicators are notnot reported with FSA’s reported with FSA’s Performance Budget.Performance Budget.

Indicators areIndicators are not not directly linked to individual directly linked to individual employee performance.employee performance.

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Short-Term Results to Accomplish – Intermediate Level

FSA FSA can influencecan influence the achievement of these the achievement of these Objectives, which can ultimately lead to the Objectives, which can ultimately lead to the accomplishment of end outcomes and strategic goals.accomplishment of end outcomes and strategic goals.

Measures with Objectives are reviewed annually or Measures with Objectives are reviewed annually or more frequently, when appropriate, by monitoring target more frequently, when appropriate, by monitoring target levels. levels.

Measures areMeasures are reported with FSA’s Performance reported with FSA’s Performance Budget.Budget.

Measures areMeasures are directly linked to senior managers’ directly linked to senior managers’ performance.performance.

Objectives and Performance Measures

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Products and services of the Agency.Products and services of the Agency.

Activities performed by employee that lead Activities performed by employee that lead to outputs or products and services. to outputs or products and services.

Measures set by employee’s manager Measures set by employee’s manager specifically for employee.specifically for employee.

Measures linked to employee’s Measures linked to employee’s performance.performance.

Employee measure falls under Agency’s Employee measure falls under Agency’s performance measure.performance measure.

Outputs and Employee Performance MeasuresOutputs and Employee Performance Measures

Agency Strategic Goal 3: Conserving Natural Resources and Enhancing the Environment

Example:

How Do Employees Link to the Strategic Plan?

ENDOUTCOMES

AGENCY END OUTCOME 1: Quality Soil

INDICATOR 1: Reduced erosion rates.

INTERMEDIATE OUTCOMES

SENIOR MANAGER PLAN OBJECTIVE 1: Improving Conservation Practices

MEASURE 1: Maintain or increase % of acres in compliance with highly erodible land and wetland provisions.

PRODUCTS and SERVICES

EMPLOYEE PLAN OUTPUT: Spot-checks for Conservation Compliance

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Strategic PlanStrategic Plan

What results to What results to accomplish by accomplish by when (short-when (short-term).term).

Example:Example:

Goal 1, Goal 1, Objective 1: Objective 1: Improving Improving Access to Access to Capital.Capital.

What results to What results to accomplish by accomplish by when (long-when (long-term).term).

Includes Includes measures, which measures, which are directional are directional indicators that indicators that will be assessed will be assessed every 3 years.every 3 years.

Example:Example:

End Outcomes End Outcomes for Goal 1:for Goal 1:

Successful Successful Farms and Farms and RanchesRanches

A Market-Based A Market-Based Agriculture Agriculture SectorSector

Thriving Thriving Agricultural Agricultural Communities.Communities.

Societal results Societal results FSA wants to FSA wants to accomplish.accomplish.

Example:Example:

Goal 1: Goal 1: Supporting Supporting Productive Productive Farms and Farms and Ranches.Ranches.

Description of Description of what FSA is what FSA is capable of capable of becoming.becoming.

Vision:Vision:

A customer-A customer-driven agency driven agency with diverse and with diverse and multi-talented multi-talented work force, work force, dedicated to dedicated to achieving an achieving an economically economically and and environmentally environmentally sound future for sound future for American American Agriculture.Agriculture.

Example of Example of outcome:outcome:

Timely Timely processing of processing of farm loans farm loans enables enables beginning beginning farmers to stay farmers to stay in business.in business.

Reason for Reason for FSA’s FSA’s existence.existence.

Mission:Mission:

Equitably Equitably servicing all servicing all farmers, farmers, ranchers, and ranchers, and agriculture agriculture partners by partners by delivering delivering effective, effective, efficient efficient agricultural agricultural programs for all programs for all Americans.Americans.

Annual PerformanceAnnual Performance

Business Business processes processes performed by the performed by the employee.employee.

Example:Example:

Processing racial Processing racial and ethnic and ethnic minorities direct minorities direct loans.loans.

Form AD-2000, Form AD-2000, Performance Plan Performance Plan Agreement and Agreement and Appraisal.Appraisal.

Example:Example:

Mission Results: Mission Results: Goal 1, Objective Goal 1, Objective 1, Measure 3: By 1, Measure 3: By 9/30/05, Reduce 9/30/05, Reduce average average processing time processing time for racial and for racial and ethnic minorities ethnic minorities direct loans to 34 direct loans to 34 days from FY 04 days from FY 04 baseline (3 year baseline (3 year average) of 37 average) of 37 days - set for days - set for employee.employee.

Form AD-2000, Form AD-2000, Performance Plan Performance Plan Agreement and Agreement and Appraisal.Appraisal.

Example:Example:

Mission Results: Mission Results: Goal 1, Objective 1, Goal 1, Objective 1, Measure 3: By Measure 3: By 9/30/05, Direct 9/30/05, Direct Loans and Funds Loans and Funds Mgmt. Branch will Mgmt. Branch will reduce average reduce average processing time for processing time for direct loans to 35 direct loans to 35 days from FY 04 days from FY 04 baseline (3 year baseline (3 year average) of 37 days average) of 37 days - set for office.- set for office.

Monitoring Monitoring progress and progress and achievement achievement based on outputs, based on outputs, products, and products, and services.services.

Example:Example:

Program Program measures such measures such as: as:

Decrease in Decrease in average average processing time processing time for all direct loans for all direct loans to 36 days from to 36 days from FY 04 baseline of FY 04 baseline of 38 days - 38 days - Agency-wide.Agency-wide.

Note:Note: These These measures would measures would be included in an be included in an Operational Plan Operational Plan for major program for major program areas. areas.

An annual An annual detailed plan for detailed plan for the acquisition the acquisition and use of and use of financial and financial and other resources other resources wherein wherein expenditures are expenditures are based primarily based primarily upon measurable upon measurable performance.performance.

Example:Example:

Goal 1, Objective Goal 1, Objective 1, Measure 3: By 1, Measure 3: By 9/30/05, Reduce 9/30/05, Reduce average average processing time processing time for all direct and for all direct and guaranteed loans guaranteed loans to 39 days from to 39 days from FY 04 baseline FY 04 baseline (3 year average) (3 year average) of 40 days - of 40 days - Agency-wide.Agency-wide.

Note:Note: This This measurement is measurement is for senior mgmt. for senior mgmt. accountability.accountability.

FSA OBJECTIVESMID-LEVEL

MANAGER PLANEMPLOYEE PLAN FSA

END OUTCOMES

EMPLOYEE ACTIVITIES

FSAMISSION

FSAVISION

FSA - PERFORMANCE BUDGET/ APP SES/GS 15,14

PLAN

From Annual Performance to Strategic Plan

FSASTRATEGIC

GOALS

PROGRAM OR OPERATING MEASURES

Strategic Goal 1Provide farm income support to eligible producers, cooperatives, and associations to help improve the economic stability and viability of the agricultural sector and to ensure the production of an adequate and reasonably priced supply of food and fiber.

Strategic Goal 3Assist eligible individuals and families in becoming successful farmers and ranchers.

Strategic Goal 4Improve the effectiveness and efficiency of commodity acquisition, procurement, storage, and distribution activities, and administer the U.S. Warehouse Act (USWA).

Strategic Goal 2Assist agricultural producers and landowners in achieving a high level of stewardship of soil, air, and wildlife resources on America’s farms and ranches while protecting the human and natural environment.

Strategic Goal 1Promoting Productive Farms and Ranches

Strategic Goal 2Supporting Secure and Affordable Food and Fiber Supply


Strategic Goal Linkage - FSA to USDA to FSA

Strategic Goal 1Enhance Economic Opportunities forAgricultural Producers

Strategic Goal 5Protect and Enhance the Nation’s Natural Resource Base and Environment

OLD

FSA FY 01-05 Strategic Plan

NEW

FSA FY 05-11 Strategic Plan

USDA FY 02-07 Strategic Plan

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USDA StrategicGoal/Objective

FSA Strategic Goal FSA Strategy

Major Program Areasthat Contribute FSA End Outcome

USDA Goal 1:Enhance EconomicOpportunities forAgricultural Producers

Objective Strategic 1.2:Support International Economic Development and Trade Capacity Building

Agency Goal 2:Supporting Secure andAffordable Food andFiber Supply

Objective 2.2:Providing Adequate, Secure Storage Capacity that Maintains Quality

Income Support Programs

Commodity Operations

End Outcome 2:Secure Supply of Quality Food and Fiber

End Outcome 3:Effective Food Aid


USDA StrategicObjective 1.3:

Expand AlternativeMarkets forAgricultural Productsand Activities

Agency Goal 1:SupportingProductive Farms andRanches

Objective 1.4:Expanding MarketOpportunities

Commodity Operations End Outcome 1:Successful Farms andRanches

End Outcome 3:Thriving AgriculturalCommunities

FY 2006 President’s BudgetStrategic Goal Linkage – FSA to USDA

USDA StrategicGoal/Objective

FSA Strategic Goal FSA Strategies

Major Program Areasthat Contribute FSA End Outcome


USDA StrategicObjective 1.4:Provide Risk Managementand Financial Tools toFarmers and Ranchers

Agency Goal 1:Supporting ProductiveFarms and Ranches

Objective 1.1: Improving Access to Capital

Objective 1.2: Mitigating Market Losses

Objective 1.3: Mitigating Losses from Natural Disasters

Farm Loan Programs


Disaster Assistance Programs

Conservation Programs


End Outcome 1: Successful Farms and Ranches

End Outcome 2: A Market-Based Agricultural Sector

End Outcome 3: Thriving Agricultural Communities

Agency Goal 2:Supporting Secure and Affordable Food and Fiber

Objective 2.1: Supporting Domestic Agriculture

Farm Loan Programs


Disaster Assistance Programs



End Outcome 1: Affordable Food and Fiber

USDA Strategic Goal 5:Protect and Enhancethe Nation’s NaturalResource Base andEnvironment

USDA StrategicObjective 5.2: Improve Managementof Private Lands

Agency Goal 3:Conserving NaturalResources andEnhancing theEnvironment

Objective 3.1: Improving Conservation Practices

Objective 3.2: Targeting Lands to Maximize Conservation Benefits

Objective 3.3: Mitigating Adverse Impacts from Agricultural Production


Farm Loan Programs

End Outcome 1: Quality Soil

End Outcome 2: Quality Water

End Outcome 3: Quality Wildlife Habitat

End Outcome 4: Quality Air

FY 2006 President’s BudgetStrategic Goal Linkage – FSA to USDA, Continued

Goal 3: Direct loan loss rate (%).

Goal 3: Guaranteed loan loss rate (%).

Goal 3: Processing time for direct loans (%).

Goal 3: Processing time for guaranteed loans (%).

Goal 3: Loans to beginning and socially disadvantaged farmers (% of total lending).

Goal 3: Direct loan delinquency rate (%).

Goal 3: Borrowers graduated from direct loans to guaranteed loans (%).

Goal 1: Maintain or reduce loss rates for:

- Direct loans

- Guaranteed loans

Goal 1: Reduce average processing time for:

- Direct loans

- Guaranteed Loans

Goal 1: Increase % of:

- beginning farmers

- racial and ethnic minorities, and women farmers financed by

FSA.

SAMPLE

Performance Measure Crosswalk

FY 05 BPI FY 06 BPI

BPMS Management Scorecard:

Reduce % of skills gaps in mission critical occupations.

Reduce average processing time to fill vacancies.

Increase % of employees that meet the homeland security training standards.

Reduce average time to certify and disburse payments.

Reduce % of erroneous payments.

Increase % of material weaknesses that are corrected on schedule.

Increase % of transactions completed through a web environment.

Increase % of program results and budget requirements that are linked to the FSA Strategic Plan and fully costed.

FY06 BPI USDA FY02-07 Strategic Plan

Management Initiative 1:

Improve human capital management.


Improve financial management.


Expand electronic government.


Establish budget and performance integration.

SAMPLE

Performance Measure Crosswalk

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BPMS MilestonesBPMS MilestonesDepartment and OMB Approval of Strategic Plan FrameworkDepartment and OMB Approval of Strategic Plan Framework

Incorporation of Framework into FY 2006 Performance BudgetIncorporation of Framework into FY 2006 Performance Budget

Linkage of Employee Performance to FY 2005-2011 Strategic Plan Linkage of Employee Performance to FY 2005-2011 Strategic Plan

Development of BPMS Intranet (internal) and Internet (public) WebsitesDevelopment of BPMS Intranet (internal) and Internet (public) Websites

Development of Interim Web-based Performance/Budget Reporting SystemDevelopment of Interim Web-based Performance/Budget Reporting System

Release of Draft Strategic Plan for Public CommentRelease of Draft Strategic Plan for Public Comment

Vendor Demonstration of Vendor Demonstration of INTEGRATEDINTEGRATED Web-based Budget, Performance, and Cost Web-based Budget, Performance, and Cost Accounting Data SystemAccounting Data System

Development & Implementation of Development & Implementation of INTEGRATEDINTEGRATED Web-based Performance Reporting Web-based Performance Reporting SystemSystem

Implementation of Strategic PlanImplementation of Strategic Plan Measure Customer SatisfactionMeasure Customer Satisfaction Measure Effectiveness of PartnershipsMeasure Effectiveness of Partnerships Streamline Business ProcessesStreamline Business Processes Develop & Implement Tiered Employee Performance System Develop & Implement Tiered Employee Performance System Leverage Resources through PartnershipsLeverage Resources through Partnerships

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TRANSFORMATIONTRANSFORMATION ChallengesChallenges

Institutes MAJOR cultural change – performance based.Institutes MAJOR cultural change – performance based.

Requires integrated change management and will facilitate Requires integrated change management and will facilitate an integrated process for realigning resources.an integrated process for realigning resources.

Requires continued commitment and support from all levels.Requires continued commitment and support from all levels.

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Visit BPMS Internet Site at:Visit BPMS Internet Site at:

www.fsa.usda.gov/bpmswww.fsa.usda.gov/bpms

For answers to your questions orFor answers to your questions or to send a question directly to the to send a question directly to the

Agency, please visit : Agency, please visit : www.fsa.usda.gov/performancewww.fsa.usda.gov/performance

Questions? Comments?

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Farm Service Agency

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