Introducing FSA

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Introducing FSAs Budget and Performance
Management System (BPMS) with a New Strategic Plan

• for better decision making and accountability
  to citizens!

April 14, 2005 Karen Malkin, Director Strategic
Performance and Evaluation Staff Dennis
Taitano, Director Budget Division
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What is the Farm Service Agency?

• Farm Service Agency (FSA) is a major agency of
  the U.S. Department of Agriculture.
• FSA was created in 1994 by incorporating the
  commodity and conservation programs of the former
  Agricultural Stabilization and Conservation
  Service (ASCS) and the lending programs of the
  Farmers Home Administration (FmHA).

Cleveland, 1940

• The Agencys name has changed over the years,
  however, its relationship with farmers and
  ranchers dates back to the 1930s. Serving
  farmers and ranchers is a major component of
  USDAs mission.

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FSA Business Lines

• FSA delivers a wide variety of programs to over
  2.2 million registered agricultural producers.
• Farm commodity programs
• Farm credit -- ownership, operating and emergency
  loans
• Conservation and environmental programs
• Emergency and disaster assistance
• Domestic and international food assistance
• International export credit programs

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FSA Programs

• FSA Programs are legislated by

• Farm Bill
• Annual Appropriations
• Disaster and Emergency Acts

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Program Delivery

• Agricultural producers apply for benefits and
  service from their local USDA Service Center.
• FSA has over 2,400 Service Centers nationwide,
  including local offices in Puerto Rico and Guam.
• FSA has 51 State Offices, including Puerto Rico.

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Decentralization Local Governance

• FSA workforce 17,000 Federal and non-Federal
  employees
• State and local county-elected committees oversee
  the delivery of FSA programs.
• Committee system and local governance sets FSA
  apart.

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Why is FSA Seeking to Transform?

• Link program results to budget requests.
• Dismantle existing stove pipes.
• Streamline business processes.
• Improve accountability.
• Align resources effectively.
• Improve employee engagement.
• Improve customer service satisfaction.
• Its good business!
• Better Performance Makes Sense!

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Organizational Issues Facing Agencies Striving to
Transform
TO Delivering and Monitoring Results Horizontal
(i.e., flatter) Employee Empowerment Working in
Matrixed Teams Forming Partnerships Sharing
Knowledge Managing Risk Constructive
Labor/Management Relations Embracing and
Leveraging New Technology
FROM Delivering and Monitoring Outputs Hierarchica
l Micro-management Working in Stovepipes Protectin
g Turf Hoarding Knowledge Avoiding
Risk Adversarial Labor/Management
Relations Avoiding New Technology
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What is BPMS?

• BPMS is management tool to facilitate FSA's
  transformation to more performance-based,
  results-focused agency.
• Links and integrates FSA's budget, cost, and
  performance management information.
• Begins with new Fiscal Years 2005 2011
  Strategic Plan.
• What gets measured gets done AND funded!

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Key Elements
BPMS Strategic Plan Framework
People Processes - Systems
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Budget and Performance Management System
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BPMS Management Structure
FSA Administrator
Associate Administrator for Operations and
Management
Associate Administrator for Programs
Director, Office of Business and Program
Integration Director, Strategic Performance and
Evaluation Staff

• BPMS Core Team
• Strategic Performance Evaluation Staff
  Director, Co-Chair
• Budget Director, Co-Chair
• Senior Managers
• Farm Programs
• Farm Loan Programs
• Commodity Operations
• Field Operations
• External Affairs
• Civil Rights

• Key Advisors
• Information Technology Division
• Economic and Policy Analysis Staff
• Financial Management Division
• Human Resources Division
• State and County Offices

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Engaging External Stakeholders

• Six full-day external stakeholder meetings in
  Omaha, Sacramento, and Washington, D.C.
• Input from 250 External Stakeholders
• Farmers and ranchers
• Conservation and environmental groups
• State and Federal agencies
• Commodity groups and trade associations
• Community-based and civil rights organizations

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FSA FY 2005-2011 Strategic Plan
Photos Courtesy of USDA
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Strategic Goal 3 Conserving Natural Resources
and Enhancing the Environment
END OUTCOMES

• END OUTCOME 1
• Quality Soil ____________________
• INDICATOR
• Reduced erosion rates.

• END OUTCOME 2
• Quality Water
• _____________________
• INDICATOR
• Reduced ground and surface water contamination.

• END OUTCOME 4
• Quality Air
• _____________________
• INDICATOR
• Increased tons of carbon dioxide sequestered.

• END OUTCOME 3
• Quality Wildlife Habitat
• _____________________
• INDICATOR
• Increased populations of targeted species.

INTERMEDIATE OUTCOMES
OBJECTIVE 3.1 Improving Conservation
Practices ______________________________ PERFORMAN
CE MEASURES M1 Maintain or increase of acres in
compliance with highly erodible land and wetland
provisions. M2 Increase of conservation acres
with invasive species controls.

• OBJECTIVE 3.2
• Targeting Lands to Maximize Conservation Benefits
• _______________________________
• PERFORMANCE MEASURES
• M1 Increase acres managed under Continuous
  Conservation Reserve Program (CRP) sign-up.
• M2 Increase general sign up acres in priority
  areas.
• M3 Reduce average processing time of conservation
  offers through partnerships and technology
• - FSA time
• - partner time.

• OBJECTIVE 3.3
• Mitigating Adverse Impacts
• From Agricultural Production
• _______________________________
• PERFORMANCE MEASURES
• M1 Increase CRP acres of riparian and grass
  buffers.
• M2 Increase of CCC sites where remediation is
  implemented.
• M3 Increase CRP restored wetlands acres.

Asterisk denotes efficiency measure.
PRODUCTS and SERVICES
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End Outcomes and Indicators

• Three Societal Strategic Goals High Level
• FSA plays a role in achievement of these societal
  goals, but Agency is not solely responsible for
  end outcomes.
• Strategic goals are relevant beyond FSA USDA
  and many other agencies and private entities play
  roles.

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Example Showing Interagency Responsibilities
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End Outcomes and Indicators

• Indicators with End Outcomes are measured every 3
  years by reviewing relevant statistics to see
  trends.
• Indicators are not reported with FSAs
  Performance Budget.
• Indicators are not directly linked to individual
  employee performance.

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Objectives and Performance Measures

• Short-Term Results to Accomplish Intermediate
  Level
• FSA can influence the achievement of these
  Objectives, which can ultimately lead to the
  accomplishment of end outcomes and strategic
  goals.
• Measures with Objectives are reviewed annually or
  more frequently, when appropriate, by monitoring
  target levels.
• Measures are reported with FSAs Performance
  Budget.
• Measures are directly linked to senior managers
  performance.

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Outputs and Employee Performance Measures

• Products and services of the Agency.
• Activities performed by employee that lead to
  outputs or products and services.
• Measures set by employees manager specifically
  for employee.
• Measures linked to employees performance.
• Employee measure falls under Agencys performance
  measure.

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Example How Do Employees Link to the Strategic
Plan?
Agency Strategic Goal 3 Conserving
Natural Resources and Enhancing the Environment
END OUTCOMES
AGENCY END OUTCOME 1 Quality
Soil INDI
CATOR 1 Reduced erosion rates.
INTERMEDIATE OUTCOMES
SENIOR MANAGER PLAN OBJECTIVE 1 Improving
Conservation Practices MEASURE 1 Maintain or
increase of acres in compliance with highly
erodible land and wetland provisions.
PRODUCTS and SERVICES
EMPLOYEE PLAN OUTPUT
Spot-checks for Conservation Compliance
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From Annual Performance to Strategic Plan
Strategic Plan Strategic Plan Strategic Plan Strategic Plan Strategic Plan
What results to accomplish by when (short-term). Example Goal 1, Objective 1 Improving Access to Capital. What results to accomplish by when (long-term). Includes measures, which are directional indicators that will be assessed every 3 years. Example End Outcomes for Goal 1 Successful Farms and Ranches A Market-Based Agriculture Sector Thriving Agricultural Communities. Societal results FSA wants to accomplish. Example Goal 1 Supporting Productive Farms and Ranches. Description of what FSA is capable of becoming. Vision A customer-driven agency with diverse and multi-talented work force, dedicated to achieving an economically and environmentally sound future for American Agriculture. Example of outcome Timely processing of farm loans enables beginning farmers to stay in business. Reason for FSAs existence. Mission Equitably servicing all farmers, ranchers, and agriculture partners by delivering effective, efficient agricultural programs for all Americans.
Annual Performance Annual Performance Annual Performance Annual Performance Annual Performance
Business processes performed by the employee. Example Processing racial and ethnic minorities direct loans. Form AD-2000, Performance Plan Agreement and Appraisal. Example Mission Results Goal 1, Objective 1, Measure 3 By 9/30/05, Reduce average processing time for racial and ethnic minorities direct loans to 34 days from FY 04 baseline (3 year average) of 37 days - set for employee. Form AD-2000, Performance Plan Agreement and Appraisal. Example Mission Results Goal 1, Objective 1, Measure 3 By 9/30/05, Direct Loans and Funds Mgmt. Branch will reduce average processing time for direct loans to 35 days from FY 04 baseline (3 year average) of 37 days - set for office. Monitoring progress and achievement based on outputs, products, and services. Example Program measures such as Decrease in average processing time for all direct loans to 36 days from FY 04 baseline of 38 days - Agency-wide. Note These measures would be included in an Operational Plan for major program areas. An annual detailed plan for the acquisition and use of financial and other resources wherein expenditures are based primarily upon measurable performance. Example Goal 1, Objective 1, Measure 3 By 9/30/05, Reduce average processing time for all direct and guaranteed loans to 39 days from FY 04 baseline (3 year average) of 40 days - Agency-wide. Note This measurement is for senior mgmt. accountability.
MID-LEVEL MANAGER PLAN
EMPLOYEE PLAN
EMPLOYEE ACTIVITIES
FSA - PERFORMANCE BUDGET/ APP SES/GS 15,14 PLAN
PROGRAM OR OPERATING MEASURES
FSA OBJECTIVES
FSA END OUTCOMES
FSA MISSION
FSA VISION
FSA STRATEGIC GOALS
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Strategic Goal Linkage - FSA to USDA to FSA
NEW FSA FY 05-11 Strategic Plan
OLD FSA FY 01-05 Strategic Plan
Strategic Goal 1 Provide farm income support to
eligible producers, cooperatives, and
associations to help improve the economic
stability and viability of the agricultural
sector and to ensure the production of an
adequate and reasonably priced supply of food and
fiber. Strategic Goal 3 Assist eligible
individuals and families in becoming successful
farmers and ranchers. Strategic Goal 4 Improve
the effectiveness and efficiency of commodity
acquisition, procurement, storage, and
distribution activities, and administer the U.S.
Warehouse Act (USWA).
USDA FY 02-07 Strategic Plan
Strategic Goal 1 Promoting Productive Farms and
Ranches Strategic Goal 2 Supporting Secure and
Affordable Food and Fiber Supply
Strategic Goal 1 Enhance Economic Opportunities
for Agricultural Producers
Strategic Goal 2 Assist agricultural producers
and landowners in achieving a high level of
stewardship of soil, air, and wildlife resources
on Americas farms and ranches while protecting
the human and natural environment.
Strategic Goal 5 Protect and Enhance the
Nations Natural Resource Base and Environment
Strategic Goal 3 Conserving Natural Resources
and Enhancing the Environment
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FY 2006 Presidents Budget Strategic Goal
Linkage FSA to USDA
USDA Strategic Goal/Objective FSA Strategic Goal FSA Strategy Major Program Areas that Contribute FSA End Outcome
USDA Goal 1 Enhance Economic Opportunities for Agricultural Producers Objective Strategic 1.2 Support International Economic Development and Trade Capacity Building Agency Goal 2 Supporting Secure and Affordable Food and Fiber Supply Objective 2.2 Providing Adequate, Secure Storage Capacity that Maintains Quality Income Support Programs Commodity Operations End Outcome 2 Secure Supply of Quality Food and Fiber End Outcome 3 Effective Food Aid
USDA Goal 1 Enhance Economic Opportunities for Agricultural Producers USDA Strategic Objective 1.3 Expand Alternative Markets for Agricultural Products and Activities Agency Goal 1 Supporting Productive Farms and Ranches Objective 1.4 Expanding Market Opportunities Commodity Operations End Outcome 1 Successful Farms and Ranches End Outcome 3 Thriving Agricultural Communities
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FY 2006 Presidents Budget Strategic Goal
Linkage FSA to USDA, Continued
USDA Strategic Goal/Objective FSA Strategic Goal FSA Strategies Major Program Areas that Contribute FSA End Outcome
USDA Goal 1 Enhance Economic Opportunities for Agricultural Producers USDA Strategic Objective 1.4 Provide Risk Management and Financial Tools to Farmers and Ranchers Agency Goal 1 Supporting Productive Farms and Ranches Objective 1.1 Improving Access to Capital Objective 1.2 Mitigating Market Losses Objective 1.3 Mitigating Losses from Natural Disasters Farm Loan Programs Income Support Programs Disaster Assistance Programs Conservation Programs Commodity Operations End Outcome 1 Successful Farms and Ranches End Outcome 2 A Market-Based Agricultural Sector End Outcome 3 Thriving Agricultural Communities
Agency Goal 2 Supporting Secure and Affordable Food and Fiber Objective 2.1 Supporting Domestic Agriculture Farm Loan Programs Income Support Programs Disaster Assistance Programs Conservation Programs Commodity Operations End Outcome 1 Affordable Food and Fiber
USDA Strategic Goal 5 Protect and Enhance the Nations Natural Resource Base and Environment USDA Strategic Objective 5.2 Improve Management of Private Lands Agency Goal 3 Conserving Natural Resources and Enhancing the Environment Objective 3.1 Improving Conservation Practices Objective 3.2 Targeting Lands to Maximize Conservation Benefits Objective 3.3 Mitigating Adverse Impacts from Agricultural Production Conservation Programs Farm Loan Programs End Outcome 1 Quality Soil End Outcome 2 Quality Water End Outcome 3 Quality Wildlife Habitat End Outcome 4 Quality Air
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SAMPLE Performance Measure Crosswalk
FY 05 BPI
FY 06 BPI
Goal 3 Direct loan loss rate (). Goal 3
Guaranteed loan loss rate (). Goal 3
Processing time for direct loans (). Goal 3
Processing time for guaranteed loans (). Goal
3 Loans to beginning and socially disadvantaged
farmers ( of total lending). Goal 3 Direct
loan delinquency rate (). Goal 3 Borrowers
graduated from direct loans to guaranteed loans
().
Goal 1 Maintain or reduce loss rates for -
Direct loans - Guaranteed loans Goal 1
Reduce average processing time
for - Direct loans - Guaranteed
Loans Goal 1 Increase of - beginning
farmers - racial and ethnic minorities, and
women farmers financed by FSA.
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SAMPLE Performance Measure Crosswalk
USDA FY02-07 Strategic Plan
FY06 BPI
BPMS Management Scorecard Reduce of skills
gaps in mission critical occupations. Reduce
average processing time to fill
vacancies. Increase of employees that meet the
homeland security training standards. Reduce
average time to certify and disburse
payments. Reduce of erroneous
payments. Increase of material weaknesses that
are corrected on schedule. Increase of
transactions completed through a web
environment. Increase of program results and
budget requirements that are linked to the FSA
Strategic Plan and fully costed.
Management Initiative 1 Improve human capital
management. Management Initiative 2 Improve
financial management. Management Initiative
3 Expand electronic government. Management
Initiative 4 Establish budget and performance
integration.
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BPMS Milestones

• Department and OMB Approval of Strategic Plan
  Framework
• Incorporation of Framework into FY 2006
  Performance Budget
• Linkage of Employee Performance to FY 2005-2011
  Strategic Plan
• Development of BPMS Intranet (internal) and
  Internet (public) Websites
• Development of Interim Web-based
  Performance/Budget Reporting System
• Release of Draft Strategic Plan for Public
  Comment
• Vendor Demonstration of INTEGRATED Web-based
  Budget, Performance, and Cost Accounting Data
  System
• Development Implementation of INTEGRATED
  Web-based Performance Reporting System
• Implementation of Strategic Plan
• Measure Customer Satisfaction
• Measure Effectiveness of Partnerships

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TRANSFORMATION Challenges

• Institutes MAJOR cultural change performance
  based.
• Requires integrated change management and will
  facilitate an integrated process for realigning
  resources.
• Requires continued commitment and support from
  all levels.

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Questions? Comments?

• Visit BPMS Internet Site at
• www.fsa.usda.gov/bpms
• For answers to your questions or to send a
  question directly to the Agency, please visit
• www.fsa.usda.gov/performance

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Farm Service Agency