WASHINGTON, DC - U.S. Senators Daniel K. Akaka (D-HI) and George V. Voinovich (R-OH), Chairman and Ranking Member of the Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia, held an oversight hearing today on the establishment of Chief Management Officers (CMO) across the federal government.  The hearing reviewed a recent Government Accountability Office (GAO) report entitled, "Organizational Transformation: Implementing Chief Operating Officer/Chief Management Officer Positions in Federal Agencies." 

Senator Akaka said, "Using the ongoing war in Iraq as an example, it is clear that strong leadership and efficient management are essential to supporting the war fighter.  We also need strong leadership and efficient management throughout the federal government to support the critical efforts of agencies to meet their missions.  A Chief Management Officer would not complicate the existing bureaucracy; rather, I believe that elevating the issues of strategic planning, human capital, and business transformation to a higher level will provide management the priority it deserves."

"True transformation within the federal government is driven by committed leadership," Senator Voinovich said.  "With the coming transition to a new administration, we must ensure that organizational transformation within all agencies continues to be a priority so that the federal government can meet the challenges of the 21st Century.  Management is not a partisan issue but it is the responsibility of Congress and the president to be good stewards of the American taxpayers' money.  Chief Management Officers are an effective tool for sustaining strong management practices at high risk departments, including the Department of Homeland Security and Department of Defense."

In April of 2006, Senators Akaka and Voinovich asked GAO to examine the issue of Chief Management Officers the federal government more closely by comparing examples in the federal government and private sector and developing strategies and criteria for establishing such positions.  The report evaluated the establishment of CMOs at the Deputy level in the leadership structure of the White House Office of Management and Budget, the Department of Treasury, the Internal Revenue Service, and the Massachusetts Institute of Technology.

GAO concluded that there are three types of CMO positions that could be established based on the agency's organizational performance, degree of change needed, nature and complexity of mission, organizational size and structure, and current leadership talent and focus.  The report went on to recommend that the President's Management Council work with OMB to use the criteria listed in assessing which agencies would be appropriate to establish a CMO.  GAO suggests that agencies use the following six key strategies for establishing CMOs: 

• Define the specific roles and responsibilities of each position,
• Ensure that the CMO has a high level of authority and clearly delineated reporting relationships,
• Foster good executive-level working relationships for maximum effectiveness,
• Promote individual accountability and performance through specific job qualifications and effective performance management,
• Provide for continuity of leadership in the CMO position.

The GAO report also highlighted the importance of the level of authority needed by the CMO.  GAO looked at four case studies, two where the CMO reported directly to the head of the organization and two where the CMO was at the number three level.  Those agencies where the CMO was at the number three level lacked the authority to successfully implement of functional management and transformational change efforts in the agency.  However, those agencies where the CMO was at the number two level had the authority to achieve their management and business transformation goals.  GAO concluded that CMO needed to be a high-level official at a number two level.  Furthermore, the working relationships between the agencies most senior leadership and the CMO are crucial to integrating and transforming agencies successfully.

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