Small Business Administration: Progress Made, but Transformation Could Benefit from Practices Emphasizing Transparency and Communication

The Administrator of SBA appointed in 2006 took several steps to clarify that he was leading SBA's transformation and reform agenda. Specifically, he communicated his priorities for the agency to all employees through town hall meetings and video broadcast messages, and he visited field offices. In 2007, SBA also created a Performance Management Office and appointed an Associate Administrator for Performance Management who oversees the implementation of the Administrator's initiatives. At SBA, the Chief Financial Officer serves concurrently in this new position. Finally, SBA further encouraged a collaborative approach by designating managers at various levels to lead initiative teams as "champions" or "project owners" of specific activities, thereby allowing them the opportunity to participate in leadership's vision for SBA and addressing employees' concerns about being uninformed and uninvolved in past transformation efforts.

SBA came under new leadership in July 2006, and with the appointment of a new administrator, SBA's existing draft transformation plan was never approved. Instead, the Administrator introduced a strategy to carry out remaining transformation objectives in a manner that addressed deficiencies in past implementation efforts and focused on SBA?s mission and priorities. Thus, the Administrator replaced "transformation" with the term "reform agenda" to describe SBA's efforts to move forward although it still aimed at accomplishing important transformation objectives. For example, transformation objectives included (1) focusing on SBA's customers, (2) empowering employees, and (3) becoming more results-driven and performance-based. Similarly, the reform agenda was created on the foundation of SBA being (1) outcomes-driven, (2) customer-focused, (3) employee-enabled, and (4) accountable, efficient, and transparent. Though SBA's earlier transformation strategy remained a draft plan, the new strategy, which has been presented as its performance management framework, has been implemented. In the performance management framework, SBA's priorities, including the Administrator's reform agenda and performance goals, form the basis for major area (program and district office) operating plans. In developing its operating plans, SBA looks at the budgetary resources available to accomplish the metrics or milestones for each activity (compliance requirement, goal, or value-added initiative) performed in a given area. The operating plans reflect SBA's implementation plan for the reform agenda initiatives and the plans are accessible to employees on SBA's intranet Web site.

To link SBA's performance goals with the goals of the agency's transformation and reform agenda, SBA created a performance management framework in January 2007. At the same time, the Administrator established a new office, the Performance Management Office that reports to the Chief Financial Officer (CFO). The PMO reports on agency performance internally and externally (for example, performance and accountability reports and budget submissions). In the performance management framework, SBA's priorities, including the Administrator's reform agenda and performance goals, form the basis for major area (program and district office) operating plans. In developing its operating plans, SBA looks at the budgetary resources available to accomplish the metrics or milestones for each activity (compliance requirement, goal, or value-added initiative) performed in a given area. In turn, the agency assesses operations by using performance scorecards to track the progress of goals and other activities. Specifically, the scorecard provides detailed information on the progress made toward achieving each metric within the operating plan. SBA senior officials track the progress of performance management priorities monthly and program managers are required to prepare monthly reports on their scorecards and meet with the Administrator and Deputy Administrator to discuss targets that have been met and action plans for addressing outstanding targets. Ultimately, SBA, through the Performance Management Office and CFO, rolls up the information from the operating plans and scorecards to develop its performance reports and budget submissions to Congress. This is reflected in SBA's fiscal year 2008 performance plan and budget submission.

To provide the infrastructure for SBA's performance management efforts, including overseeing SBA's strategic plan and goals, in January 2007, the Administrator implemented a Performance Management Framework and established a new office, the Performance Management Office that oversees and reports on agency performance, including agency priorities and performance goals. This framework links agency-wide goals to individuals' performance through SBA's performance management system that assesses employee performance. The priorities and goals set within SBA's performance management framework are reflected in employee roles and responsibilities and employee personal business commitment plans that serve as individual performance contracts for employees. Employees' performance is assessed based on these personal business commitment plans. For example, the personal business commitment plans of senior officials link their performance to goals in the scorecards for their respective areas, which are then linked to SBA's strategic and performance goals.

For fiscal year 2008, SBA developed a comprehensive communications plan including strategies for improving internal and external communications and detailed steps for making these improvements. It also assigned responsibility for each communication area such as SBA's Web site, marketing, and internal communications to specific individuals within SBA's communications office. SBA has also used e-mail and conference calls to improve its internal communications with employees. For example, SBA distributes agency-wide e-mails on procedural notices. Regular conference calls also provide headquarters and field employees with opportunities to share information. Finally, the Administrator appointed in 2006 sought to improve communication with employees and told employees that they could send him emails directly and in confidence. The Administrator also visited employees in headquarters and field offices and used town hall meetings and video broadcast messages to communicate with all employees.

SBA has taken actions to solicit ideas and feedback from employees. SBA's intranet Web site has a "comments and suggestions" tool that all employees can use to submit their ideas to the agency. SBA also developed a 10-member field advisory council (FAC), comprising one district director from each region, which gives district office management an opportunity to communicate field issues and concerns directly to headquarters. To further address employee concerns about their involvement, SBA conducted focus groups in 2008. SBA employees in headquarters and the field offices participated in focus groups in April and June 2008. SBA developed a report on these focus groups and plans to post the report on its intranet Web site. SBA also identified several pilot initiatives, such as an employee engagement guide to provide management with tools to engage employees and an SBA talent map that would promote interaction of employees with agency subject matter experts, to address employee concerns identified in the focus groups. In addition, SBA plans to survey employees to get their input on which pilot initiatives should be given the highest priority.