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Memorandum for the Heads of Executive Departments and Agencies.

Subject: Implementing Management Reform in the Executive Branch

In order to establish and implement more effective and efficient leadership and management principles throughout the Executive branch as identified in the National Performance Review, I hereby direct the following:

1. Establish Chief Operating Officers Each agency head shall designate a Chief Operating Officer, who shall be the Deputy or another official with agency-wide authority. The Chief Operating Officer shall report directly to the agency head and shall be responsible for:
   1. implementing the President's and agency head's goals and the agency mission;
   2. providing overall organization management to improve agency performance;
   3. assisting the agency head in promoting ongoing quality improvement, developing strategic plans, and measuring results;
   4. directing ongoing reengineering of the agency's administrative processes;
   5. overseeing agency-specific application of performance measures, procurement reforms, personnel reductions, financial management improvements, telecommunications and information technology policies, and other government-wide systems reforms adopted as a result of the recommendations of the National Performance Review; and
   6. reforming the agency's management practices by incorporating the principles of the National Performance Review into day-to-day management.
2. Implement Additional Agency Reforms. Each agency head shall identify and implement additional changes within the agency that will promote the principles and standards of the National Performance Review and the strategic and quality management approaches described by the Federal Quality Institute's "Presidential award for Quality" or its successor award (s).
3. Establishment of President's Management Council. In order to advise and assist the President and the Vice President in ensuring that the reforms adopted as a result of the National Performance Review are implemented throughout the Executive branch, I hereby establish the President's Management Council ("The Council"). The Council shall comprise the:
   1. The Deputy Director for Management, Office of Management and Budget;
   2. The Chief Operating Officers from the following agencies:
      1. Department of State;
      2. Department of the Treasury;
      3. Department of Defense;
      4. Department of Justice;
      5. Department of the Interior;
      6. Department of Agriculture;
      7. Department of Commerce;
      8. Department of Labor;
      9. Department of Health & Human Services;
      10. Department of Housing & Urban Development;
      11. Department of Transportation;
      12. Department of Energy;
      13. Department of Education;
      14. Department of Veteran Affairs;
      15. Environmental Protection Agency;
   3. The following central management agency representatives:
      1. Director of the Office of Personnel Management;
      2. Administrator of General Services;
   4. Chief Operating Officers of three other Executive branch agencies designated by the Chairperson, in his or her discretion;
   5. Secretary of the Cabinet; and
   6. Such other officials of Executive departments and agencies as I may, from time to time, designate.
   The Deputy Director for Management of the Office of Management and Budget shall serve as Chairperson of the Council. The Chairperson of the Council shall appoint a Vice-Chairperson of the Council from the Council's membership to assist the Chairperson in conducting the affairs of the Council.

   I also establish an Executive Committee of the Council. Members of the Executive Committee shall be: the Chairperson; the Vice-Chairperson; the two central management agency representatives; two Chief Operating Officers serving on the Council, whom I shall designate, and any additional Council members whom I may, from time to time, designate. The Chairperson shall convene meetings of the Council, which shall be held at least once a month. The functions of the Council shall include, among others:

   1. improving overall Executive branch management, including reform of government-wide management systems, such as management controls, financial management, personnel, budgeting, and procurement;
   2. coordinating management-related efforts to improve government throughout the Executive branch and, as necessary, resolving specific interagency management issues;
   3. ensuring the adoption of new management practices in agencies throughout the Executive branch; and
   4. identifying examples of, and providing mechanisms for, interagency exchange of information about best management practices.
   The Council shall be provided with appropriate staff support and other resources as may be necessary to carry out its duties. In addition, the Federal Quality Institute shall serve as a resource to the Council. The Council shall seek advice and information as appropriate from nonmember Federal agencies, particularly smaller agencies. The Council shall also consider the management reform experience of corporations, nonprofit organizations, State and local governments, government employees, public sector unions, and customers of government services. Agencies shall cooperate with the Council and provide such assistance, information, and advice to the Council as the Council may request, to the extent permitted by law.
4. Independent Agencies Independent agencies are requested to adhere to this directive.
5. Judicial Review. This directive is for the internal management of the Executive branch and does not create any right or benefit, substantive or procedural, enforceable by a party against the United states, its agencies or instrumentalities, its officers or employees, or any other person.
6. Publication

William J. Clinton

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