Brigadier General John J. Kelly, Jr., United States Air Force (Ret.) Deputy Under Secretary for Oceans and Atmosphere Th

1. Brigadier General John J. Kelly, Jr., United States Air Force (Ret.) Deputy Under Secretary for Oceans and Atmosphere The NOAA Leadership Seminar 08.28.2007

2. NOAA’s Mission & Vision Current Environment How the World views NOAA Transformation Business Model Budget Leadership Challenges Recapitalization Labor Relations Execution Overview NOAA Leadership: Creating One NOAA

3. NOAA’s Mission NOAA Leadership: Creating One NOAA

4. Eye On The Mission • “Every business, if it is to succeed, must have a sense of direction and mission, so that no matter what you are doing, you know how you fit in, and that what you are doing is important.” • former IBM CEO Louis Gerstner NOAA Leadership: Creating One NOAA

5. NOAA’s Vision NOAA Leadership: Creating One NOAA

6. Eye On The Vision • “Everything you do is for a reason and that reason is contained within the vision.” • Merck & Co chair, president and CEO Raymond Gilmartin NOAA Leadership: Creating One NOAA

7. NOAA Organization NOAA Leadership: Creating One NOAA

8. Fiscal Year 2006 Audit Findings and Recommendations (NFRs) • Major Conclusions: • Unqualified audit opinion last eight years. • Personal Property, Construction Work In Progress, Reimbursable Agreements, and Grants recurring issues. NOAA Leadership: Creating One NOAA

9. Fiscal Year 2006 Audit Information Technology Security • OIG Evaluation: • Good: Security Plans and Risk Assessments • Not so Good: Testing Disaster Recovery • FY07 Activities • Complete Disaster Recovery Plan testing and implement Continuous Monitoring • Authorizing Official review all IT Security Plans • Certification and Accreditation current for all IT systems NOAA Leadership: Creating One NOAA

10. HUMAN CAPITALStatus l Progress l In order to move to green in status, NOAA must complete its transition to the new 5-tier performance appraisal system, and raise its overall satisfaction score on the Human Resources Performance Management Survey to match or exceed the Department’s score of 68.2 percent. COMPETITIVE SOURCINGStatus l Progress l The study of NOAA’s Marine and Aviation Operations Relief Pool (36 FTEs) has been completed, and is undergoing internal management review prior to formal submission. To achieve a green status rating, at least one feasibility study needs to move to the preplanning stage. FINANCIAL PERFORMANCEStatus l Progress l NOAA continues working collaboratively with the Department to implement financial performance initiatives. E-GOVERNMENTStatus l Progress l NOAA needs to continue emphasis on improving information technology security certification and accreditation processes and documentation. BUDGET & PERFORMANCEStatus l Progress l Hydrology and National Marine Fisheries underwent PART reviews. Both were rated Moderately Effective. According to DOC, NOAA was generally unable to link its PART recommendations that require funding to its FY 2009 budget request. R&D INVESTMENTStatus l Progress l NOAA will attain Green status when 75% of its R&D programs achieve PART ratings of Moderately Effective or higher. NOAA plans for two of its R&D programs to undergo review in 2009 (Weather & Water and Climate) and one in 2010 (Ecosystems). NOAA is working with these programs to prepare them for successful reviews. Organizational AssessmentPresident’s Management AgendaThird Quarter NOAA Leadership: Creating One NOAA

11. Organizational Assessment PART Summary FY 2006 GPRA Measures NOAA Leadership: Creating One NOAA * Government-wide, SBIR PARTs are on hold with OMB

12. Organizational AssessmentFunding Summary NOAA is obligating at a rate of 87% versus planned, having obligated 58% of its FY2007 budget as of the end of the 3rd quarter. NOAA Leadership: Creating One NOAA

13. Holding Company Ad Hoc Subjective Decisions Talk Corporation Process Fact-based Decisions Execution Transformation to “One NOAA” NOAA Leadership: Creating One NOAA

14. NOAA “Business” Model NOAA Leadership: Creating One NOAA

15. NOAA Funding Trends(Constant Dollars in Billions) Total 3.1 3.1 3.4 3.5 3.5 3.3 3.1 3.2 3.5 Data Source: DOC Summary of enacted BA and DOC BIB Addendum for FY 08 PB NOAA Leadership: Creating One NOAA

16. Leadership What do you want us to do, Boss?!

17. Leader’s 7 Essential Behaviors • Know your people and your business. • Insist on realism. • Set clear goals and priorities. • Follow through. • Reward the doers. • Expand people’s capabilities through coaching. • Know yourself. NOAA Leadership: Creating One NOAA

18. Life’s Paradoxes • Centralized efficiencies vs. decentralized responsiveness • Being disciplined vs. being innovative • Taking risks vs. avoiding mistakes • Knowing the details vs. delegating responsibility • Fast decision process vs. correct decisions • Respect for the individual vs. criticism NOAA Leadership: Creating One NOAA

19. Performance Measures • Understandable and meaningful • Organizational culture — achievement important • Performance measures at several levels • Information guide to action to improve performance NOAA Leadership: Creating One NOAA

20. Strategy … Metrics… Leaders … Actions Metrics Report Rationalize Resources Strategy Decide Align Effort Mission Implement Strategy Manage Accountabilities Goals Manage Processes Improve Performance Stakeholders Manage Capabilities NOAA Leadership: Creating One NOAA

21. Execution • Leaders are central to execution. • Know yourself. • Be engaged in both the “whats and hows.” • Be honest about all realities. • Promote ongoing honest dialogue. • Create and maintain an execution culture • Translate visions and goals into tangible deliverables and actions. NOAA Leadership: Creating One NOAA

22. Execution • Put the “right” people in the “right” places. • Be involved in selections. • Reward the doers. • Expand the capabilities through coaching. • Put processes and mechanisms in place to effectively operationalize execution. • Strategic plan – stretch goals. • Strategy reviews. • Operating plans. • Realistic resources and budgets. NOAA Leadership: Creating One NOAA

23. Keys to Creating “One NOAA” • Remove the Stovepipe Culture • Improve understanding of how Line/Staff Offices impact/benefit each other X NESDIS NMAO NMFS NWS NOS OAR NOAA Leadership: Creating One NOAA

24. Improve Communication Keys to Creating “One NOAA” NOAA Leadership: Creating One NOAA

26. Recapitalization Facilities Construction and Maintenance $361M shortfall • 800 owned and leased facilities • Current replacement value of nearly $4 billion • 61 NOAA owned facilities more than 50 years old FY 10 -14 POP Requirements NOAA Leadership: Creating One NOAA

27. Recapitalization Aircraft Replacement $168M shortfall • No funding in current program for new aircraft • Average age in FY 11 is 30 years • Aircraft aging beyond planned service life • Aircraft becoming less reliable and increasingly difficult to maintain FY 10 -14 POP Requirements NOAA Leadership: Creating One NOAA

28. Recapitalization Fleet Replacement Near Year Shortfalls have delayed ship construction • Lack of replacement ships… • ages the fleet and technology • increases maintenance costs • reduces effectiveness FY 10 -14 POP Requirements NOAA Leadership: Creating One NOAA

29. Recapitalization Polar Orbiting Environmental Satellites (POES + NPOESS) $2.2B * FY 09 DoC Budget Submission NOAA Leadership: Creating One NOAA

30. Recapitalization Geostationary Orbiting Environmental Satellites (GOES N-P, R) $3.0B * FY 09 DoC Budget Submission NOAA Leadership: Creating One NOAA

31. NOAA’s Projected Satellite Program NOAA Leadership: Creating One NOAA

32. Labor Relations • REQUIREMENT FOR ALL NOAA MANAGERS WITH LABOR RELATIONS OBLIGATIONS: • BEFORE making any decisions regarding changes in conditions of employment or engaging in discussions with the union and employees regarding prospective changes in your organization, you must FIRST contact your servicing Workforce Management Office to obtain guidance and assistance in communicating with the union and your employees. NOAA Leadership: Creating One NOAA

33. Labor Relations • Changes in Working ConditionsFour Required Steps • Mgmt. decides on the particular change • Mgmt. consults with WFMO to determine whether these changes rise to the level of whether notice is required to the union • Mgmt. provides notice of change to the union – with WFMO concurrence on substance of notice • If the union responds, Mgmt. consults with WFMO on all further correspondence – including the negotiation process NOAA Leadership: Creating One NOAA

34. Labor Relations • Types of Working Conditions • Personnel policies: Example—Five Level Performance Management System • Practices: Example—Overtime Assignments • Other Conditions: Example—Operational (Method, processes, and/or technology used by employees to complete their assigned duties.) • Example—Work Related (Work space, breaks, safety) NOAA Leadership: Creating One NOAA

35. What do you want NOAA to look like in 15 years?