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Appendix H:
Progress in Streamlining
Management Control Positions

NPR found that nearly one in three federal workers worked in these systems and that their salaries consumed about $35 billion a year. NPR recommended reducing these costs in half by eliminating 252,000 positions (which was later raised to 272,900 positions by law) over a six-year period ending in 1999. NPR also recommended reducing the number of management positions by setting a challenging governmentwide goal of roughly doubling the span of control. The governmentwide ratio of supervisors to employees in 1993 was 1:7, and NPR recommended halving the ratio to 1:15.

These goals are important because employees cannot be empowered to serve their customers unless the red tape that binds them is removed. So the goal of reduction in the workforce -- especially the reduction of management control positions -- is not only to save money but to improve the working conditions for frontline federal workers -- particularly those who serve the public -- and expedite the flow of information between top administrators and frontline workers by reducing decisionmaking bottlenecks.

Within days of the release of the 1993 report, President Clinton issued a memorandum to department and agency heads directing the downsizing and asking that the existing ratio of employees to supervisors be doubled. In late 1994, the Office of Management and Budget (OMB) followed up this memorandum with additional guidance directing agencies to develop streamlining plans and submit them to OMB for approval.

The downsizing initiative is now at its halfway point, and progress is being made. Some agencies have met many of the goals already -- even though they have six years to do so. Most agencies, however, do not plan to meet the goal of cutting management control positions in half. Many believe the goal is not appropriate for their agency and maintain that meeting it would disrupt existing operations.

Table H-1 shows the progress of departments and major agencies in meeting the NPR goals over the 1993-96 period. Table H-2 shows planned efforts in meeting the goals over the full six-year period 1993-99. Finally, Table H-3 shows agency efforts to increase the ratio of employees to supervisors. Overall agency progress toward NPR's management control streamlining goals is summarized below:

• Reducing the Number of Supervisors by Half. Halfway through the six-year streamlining initiative, 11 of the 27 largest departments and agencies have reduced their number of supervisors by 25 percent or better, thereby indicating they are making visible progress in reducing the number of supervisors by half. By 1999, 20 plan either nearly to meet or to exceed this goal. As a result, on a governmentwide basis, the number of supervisors should be reduced by nearly 50 percent.
• Reducing the Number of Headquarters Staff by Half. Eight of 27 agencies are making progress in reducing headquarters staff at the halfway point. In addition, eight plan to come close to or exceed the goal by 1999. As a result, on a governmentwide basis, the number of headquarters staff should be reduced by about 25 percent.
• Reducing the Number of Management Control Positions by Half. Three of 27 agencies are making progress in reducing the number of management control positions. In all, only two plan to come close to that goal by 1999. As a result, on a governmentwide basis, the number of management control positions should be reduced by about 21 percent.
• Doubling the Ratio of Employees to Supervisors. Three of 27 agencies say they have already met the goal of doubling the ratio of employees to supervisors. Eight additional agencies plan to do so by 1999.

Table H-1. Streamlining Changes to Date:
FYs 1993 1996 (in percentages)

Table H-2. Planned Changes in Streamlining:
FYs 1993 1999 (in percentages)

Table H-3. Ratio of Supervisors to Other Employees:
FYs 1993, 1996, and 1999