The RRB has committed to a number of management strategies that will guide our efforts to accomplish our stated strategic goals and objectives. These strategies encompass many areas, but can be loosely categorized along the lines of the President’s Management Agenda, which is designed to promote management improvements throughout the Federal government in six key areas:

• Expanded E-Government
• Budget and Performance Integration
• Financial Management Improvements
• Strategic Management of Human Capital
• Competitive Sourcing and Partnerships
• Freedom of Information Act Planning, Processing and Reporting

A. Technology and Innovation, including E-Government

Our primary goal is to strategically align our information technology (IT) environment and investments to most effectively and efficiently support our business needs. The planned improvements in IT operations and procedures will enable us to respond rapidly to changing business requirements, such as legislative changes and technological advances. We are currently engaged in a multi-year project to implement a mainframe-based relational database management system and to optimize the large databases which comprise the core of our benefit program operations. Our priorities in the coming years will include implementing a variety of E-Government initiatives within the framework of our overall information technology architecture, in a secure and stable electronic environment. At the same time, we will also focus on other business process improvements which may or may not require new systems or automation. Such improvements will include reengineered work processes and streamlined procedures. The key components of this strategy are outlined below:

E-Government

E-Government is a major technological advance that allows our customers the option of choosing to use the Internet for a variety of services. One of the principal components of the President’s Management Agenda, E-Government has significant potential for improving customer service, since it gives the customer more independent control over his/her own business transactions, which can be conducted at any time and from any location where the customer has an Internet connection. In addition, E-Government promises a framework within which Federal agencies will be able to collaborate and align their efforts to provide standard customer service features, to eliminate redundancy, and to take advantage of economies of scale in the development of new applications.

The RRB currently has several E-Government services available for our customers, and plans to expand the range of services even more. Examples of on-line services our customers will have in the future include:

• On-line applications for use by railroad employees and their spouses in filing for retirement age and service benefits.
• On-line claims for sickness insurance benefits.
• An enhanced Employer Reporting System (ERS) for use by railroads and rail labor employers to file service and compensation reports and for related activities. The enhancements include: additional forms, improved on-line edits and help, creation of an on-line training system, improved secure file transfers and the conversion of the system to Microsoft’s .Net platform.
• On-line input of change of address or direct deposit information.

Enterprise Architecture

Enterprise Architecture (EA) is a process that not only drives continuous business and technology alignment, but provides an overall plan for designing, implementing and maintaining the underlying infrastructure to support information sharing and resource optimization. Technology has done an excellent job of supporting agency business needs. Our opportunity is to leverage this experience and knowledge into enterprise solutions that support the future of the RRB and the constituents we serve. EA offers a framework for accomplishing this shared mission.

The RRB’s EA framework is based on the Federal Enterprise Architecture Framework. The EA documents the agency’s baseline architecture and the processes for managing change to the architecture. The target architecture we have established defines the information technology environment to achieve our current and future business goals and objectives. The target environment is designed to

• Streamline business and technical processes and procedures;
• Be flexible in consolidating similar or redundant internal and government-wide functions, applications, software and hardware;
• Enable collaboration among all kinds of applications; and,
• Promote reuse of data and processes, as a means of reducing development time and costs.

Internal Operations/Process Improvements

Our focus will remain on simplifying the delivery of services and making it possible for our customers, businesses and government agencies to easily obtain information and service from the RRB. We will use several strategies over the course of the planning period in order to achieve these goals.

• Point-of-Contact Service

  This is our way of describing our ideal service delivery method – one in which a single contact from the customer, including businesses and government agencies, results in the desired outcome, without internal handoffs or the need for multiple customer contacts. We use this approach when designing internal processes and procedures for our claims examiners and claims representatives who deal with our customers. This philosophy has also been built into our enterprise architecture, and represents a key requirement in our overall strategy. We will ensure that new systems are designed to provide this kind of responsive customer service.
   

• Streamlining and reengineering

  While we strive to meet the standards we set in our customer service and performance plans, we may not always be able to do that. We will review our performance data at least annually to identify areas that fall short of our goals. Through streamlining and reengineering studies, we will look for ways to make short-term improvements, and we will develop recommendations for longer-term projects. Finally, we will track our improvements to determine their effectiveness.
   

• Review of regulations, policies and procedures

  To some extent regulatory, policy or procedural requirements may cause delays, inaccuracies or complexities. We will review and evaluate such requirements to determine if changes would be warranted. If so, we will propose alternatives in order to reduce operational complexities and erroneous situations, and alleviate delays.

B. Budget and Performance Integration

Beginning in fiscal year 2007, we will also work with OMB to evaluate RRB programs using the Program Assessment Rating Tool.

C. Financial Management Improvements

The President’s Management Agenda calls on Federal agencies to improve financial performance by providing accurate and timely information to support operating, budget, and policy decisions, and by reducing improper payments.

The RRB’s financial statement received an unqualified audit opinion in fiscal year 2005 for the sixth consecutive year. However, the RRB’s Inspector General identified three material weaknesses in his Opinion on the Financial Statements, dated October 27, 2005: information security, performance measures, and controls over the actuarial projection process. The Board Members have acknowledged all three weaknesses and have determined that the information security weakness represents a material weakness under the Federal Managers Financial Integrity Act (FMFIA). The Board Members have not categorized the other two areas as material weaknesses under the FMFIA. Nevertheless, the agency has developed action plans and is taking steps to make improvements in all three areas.

To meet new reporting requirements, and thereby provide more timely financial information, the RRB has issued quarterly financial statements within 21 days after the end of each quarter since fiscal year 2004. Also, the annual Performance and Accountability Report has been issued within 45 days after the end of each fiscal year since 2004.

In June 2004, the RRB migrated its payroll processing to the General Services Administration (GSA). We are also participating in GSA’s E-Gov Travel initiative to implement an automated, integrated and web-based approach to consolidating travel services. The E-Gov Travel system is designed to support everything from planning, authorizations and travel management services to voucher submission and payment.

The agency has established and documented a multi-faceted methodology for identifying improper payments in our RRA and RUIA benefit payment programs. Our improper payment rates do not exceed the OMB thresholds, as defined by OMB guidance M-03-13, which includes guidelines for implementing the Improper Payments Information Act of 2002. The RRB has made concerted efforts to reduce improper payments over the years. Our payment accuracy rates are at consistently high levels and the return on investment for program integrity activities has been high as well. We monitor progress on implementing recommendations from the quality assurance process, and we are vigilant about pursuing OIG recommendations which impact the quality and timeliness of payments. We have also worked closely with our OIG in referring potential fraud cases for investigation and prosecution. In addition, we pursue automation initiatives and operational improvements that minimize improper payments.

D. Strategic Management of Human Capital

While we have great confidence in our proven track record and in our continued ability to successfully manage our human capital resources, we understand that work is still needed to maximize the principles that are embodied in successful human capital management. This is one of our highest priorities during this planning period. The President’s Management Agenda calls for various human capital strategies. These are listed below with a brief description of the RRB’s intentions regarding each one:

• Strategic alignment with the agency’s mission

  We will align our human capital policies to support the accomplishment of the agency’s mission, vision, goals and objectives. This will include ensuring that all employees and organizational units can link their daily activities with the agency’s mission.
   

• Workforce planning and deployment

  We will recruit, hire, develop and retain a diverse workforce with the strategic competencies required for mission-critical positions.
   

• Leadership and knowledge management

  We will foster a leadership environment that inspires, motivates and guides employees toward our strategic goals; coaches, mentors, and challenges staff; provides needed training and sharing of knowledge; and, models high standards of honesty, integrity, trust, and respect for all individuals.
   

• Results-oriented performance culture

  We will maintain a performance culture that effectively uses performance appraisal and incentive systems to distinguish between good and poor performers and encourages innovation, creativity and enthusiasm among our staff. We will also provide a flexible work environment, using programs such as family-friendly leave, compressed work schedules, telecommuting, and other accommodations to improve morale and productivity.
   

• Talent

  We will encourage professionalism and productivity in our workforce through training, incentives, and effective performance appraisal systems. We will also promote a climate of openness, continuous learning, and improvement. Through our succession/workforce planning efforts, we will strive to identify all mission-critical occupations, competencies and skills, addressing any identified gaps.
   

• Accountability

  We will document our human capital management policies and guidelines through plans, procedures, handbooks and reports, and will use analytical data to aid our decision-making and to assess our overall progress in this area.

E. Competitive Sourcing and Partnerships

Competitive sourcing involves conducting public-private competitions, either in a standardized or streamlined process, for commercial activities currently performed by Federal employees. The RRB is committed to meeting statutory and regulatory requirements for identifying commercial activities and conducting such competitions, as described in Chapter V, Objective II-C. For example, we will comply with the requirements of the Federal Activities Inventory Reform Act of 1998 and meet all procedural guidelines for competitive sourcing evaluations. In addition to our competitive sourcing activities, we will also be taking the following actions related to procurement and partnerships:

• Ensure that the RRB consistently pays the lowest price for products and services commensurate with quality, service, delivery and reliability.

  This strategy will result in a first-class acquisition system based upon regulations that apply to all Federal agencies. This system will make maximum use of competitive procedures, require that awarded contracts include past performance as an evaluation factor, and ensure that contractors meet all delivery requirements and schedules for goods or services. To achieve this, the RRB will:

  • Pay the lowest price for products/services commensurate with quality, service, delivery, and reliability.

    We will promote full and open competition to the maximum extent practical when procuring products and services for the agency, and award purchase orders and contracts only to responsible contractors.
     

  • Closely manage solicitations and the resulting contracts.

    We will award contracts on time to ensure that the required product or service is delivered in time to meet agency requirements and ensure the delivery of quality products and services.

    We will use the simplified acquisition processes where appropriate, including procurement cards for smaller purchases. We will closely monitor products and service delivery schedules and take all necessary remedies to obtain products and services that satisfy agency requirements.
     

  • Make use of strategic sourcing as a means of maximizing the value of funds spent on goods and services.

    In May 2005, OMB issued guidance that encouraged agencies to implement strategic sourcing. This is a collaborative and structured process for critically analyzing spending and making data-driven decisions on acquiring goods and services. While the RRB does not spend as much of its budget on commodities and services as larger agencies, we have identified items such as office supplies, paper, printer cartridges and photocopiers that lend themselves to such an approach. We will look for opportunities to obtain savings on these particular items, as well as attempt to identify other areas suitable for strategic sourcing techniques.
     

• Use outside sources and partnerships, when appropriate, to accomplish our mission.

As a small agency, it is not always economically feasible to retain staff expertise in specialized areas or to perform all activities in-house. We will evaluate the use of outside resources and partnerships based on considerations such as cost and/or time savings, improved effectiveness, enhanced expertise and increased customer satisfaction.

In keeping with this strategy, we will:

• Make use of advisory and assistance services when appropriate.
• Keep abreast of current trends and opportunities.
• Work with other agencies and organizations to meet mutual goals.

F. Freedom of Information Act (FOIA) Planning, Processing and Reporting