Transforming Organizational Structure

Recommendations and Actions

ORG02: Use Multi-Year Performance Agreements Between the President and Agency Heads to Guide Downsizing Strategies


Use multi-year performance agreements between the President and agency heads as a tool or guide for downsizing, reengineering, partnering across established boundaries, and empowering teams with authority, skill, and accountability. (2)

Performance agreements should be used to identify methods for measuring progress toward agreed-upon results and systemic changes that will allow major reductions in the costs and number of staff dedicated to central control structures.(1) In exchange for these commitments, the Executive Office of the President should support agencies with increased flexibility through regulatory relief, executive orders, or legislative initiatives. Service reductions should not be accepted if they are across-the-board or if substantial administrative costs and staff remain in headquarters or regional offices. Where possible a criteria like the Postal Service's "Do they touch the mail?" should be developed by each agency.


1. See NPR's Accompanying Report Mission-Driven, Results-Oriented Budgeting, BGT01: Develop Performance Agreements With Senior Political Leadership That Reflect Organizational and Policy Goals.

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