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Balancing Management Reform:
The HUD 2020 Experience

When Andrew Cuomo took over as Secretary of Housing and Urban Development, he faced the challenge of restoring the reputation of a department. HUD�s reputation was one of mismanagement at best and malfeasance at worst. Secretary Cuomo set out to change HUD and restore the public�s trust in a department established to serve America�s neediest populations.

In order to achieve this, he would need to accomplish a major transformation of the Department�s programs and management operations.

His defining principles for this transformation were:

• No givens
• Distinct business lines w/core purpose of each organization within HUD
• Need to match workload with workforce and skill with service
• Measure and reward performance
• Create changes with most leverage
• Examine privatization opportunities
• Master and utilize new technologies

Extensive consultations were held with customers and stakeholders at all levels. One of HUD�s problems is that their product delivery is frequently through third parties (e.g. state/local governments, community groups). The way HUD delivers its services and the speed of its processing impact the "middle man�s" capabilities.

Major dysfunctions were identified by "change agents" (employees/customers):

• Proliferation of boutique programs
• Organized by program rather than function
• Process rather than performance emphasis
• Mismatched workload and workforce
• Management information systems not integrated, accurate, reliable or timely
• Organizational structure had ineffective relationships between HQ and field
• Workforce had confusing mandates
• Stewardship of public fund was not a priority

As a result of this consultation effort, primary management reforms were set into motion:

• Reorganization by function rather than program; consolidate and/or privatize
• Modernize/integrate HUD�s outdated financial management systems
• Create enforcement authority with one objective: restore public trust
• Refocus and retrain HUD�s workforce to carry out our revitalized mission
• Establish performance-based systems for HUD programs, operations, employees
• Replace HUD�s top-own bureaucracy with new customer friendly structure

Keeping in mind the primary responsibility of the Department: (quote from enacting legislation), the HUD mission became two-fold, (1) empowering people and communities; and (2) restoring the public trust.

The Secretary set out its primary objectives, based on HUD�s business lines and, having established these objectives, HUD set about to restructure itself to deliver services in a more efficient and effective manner.

Established six strategic objectives (based on Strategic Planning Process):

• Fighting for fair housing
• Increasing affordable housing and homeownership
• Reducing homelessness
• Promoting jobs and economic opportunity
• Empowering people and communities
• Restoring public trust

The Business and Operating Plan (BOP) was established

• Based in Strategic Plan/Annual Performance Plan (roll down from and roll up to)
• Prime directive for work planning and management in Department

The development process included review and examination of

• HUD mission
• HUD�s Customers
• Programs, products and services
• Processes and linkages across major program operations and organizations

Next steps have included:

• Alignment of strategic objectives with:
  • major management reforms
  • new organizations
  • operations
  • programs
  • services
• Development of quantitative goals at all levels of program delivery
• Development of a workload planning and customer service delivery approach