Funding Constraints Driving Agency Reorganization Planning

Communication and transparency identified as specific factors for more effective reorganization

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Jul 30, 2012, 10:24 ET

WASHINGTON, July 30, 2012 /PRNewswire/ -- Driven by budgetary constraints, federal government managers are considering reorganization at the agency or program level according to a new study by the Government Business Council (GBC) and Deloitte. But, while more than half (51 percent) attribute reorganization to limited financial resources, a mere 29 percent say their agency is equipped to manage the human capital effects of a reorganization.

"Our research shows that the resources and skills required for an effective reorganization are not readily available in many agencies," says Bryan Klopack, executive director of research and analysis, Government Executive Media Group. Only 35 percent of respondents considering reorganization say their group possesses the necessary internal skills and resources to monitor and evaluate the effects of reorganization.

The report, "Tidying Up: What Reorganization Can Do for Federal Agencies," assesses the perceptions, attitudes and experiences of federal employees regarding potential department-, agency-, and program-level reorganizations and consolidations. The study is based on focus group and survey data collected from senior-level federal employees from the GS/GM level 11.

Additional specific report findings include:

Federal managers are familiar with reorganization. More than 90 percent of survey participants experienced reorganization at the department/agency or program/office level.
Respondents report past reorganizations produced less than effective results due to poor communication from leadership (76 percent) and employee resistance (63 percent).
Despite the challenges that complicate reorganization, focus group participants still consider it worthwhile. Recommendations include having a well-developed plan and communicating it clearly and effectively to stakeholders, and facilitating effective oversight and monitoring throughout the entire process.

"Though the federal government has specific challenges when it comes to reorganization, there are successes stories and leading practices at the state and local level, and also in the non-profit and private sector that can help federal agencies achieve positive outcomes," said John Powers, principal, and global merger and acquisition consulting services leader, Deloitte Consulting LLP. "Government leaders will be looking to align assets to priorities so they can grow internal capability while still effectively executing the agency mission. A well-planned and executed reorganization can help accomplish those goals."

To download the full report, please visit: www.govexec.com/gbc/tidying-what-reorganization-can-do-federal-agencies/56998/.

To learn more about leading practices in reorganization from the public and private sector, please visit www.deloitte.com/us/TidyingUpReport

About Deloitte's Federal Government Practice
"Deloitte" is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management and tax services to selected clients. In the United States, more than 6,600 professionals are dedicated to serving U.S. federal clients with wide-ranging missions. Deloitte is helping federal organizations explore how to be more efficient or do things differently, with a deep understanding of the government's requirements, processes, and systems, and insights into workforce and technology issues. By drawing on industry-leading restructuring practices across government and business, Deloitte applies a mix of private-sector perspective and public-sector experience to help federal agencies rethink and restructure—from day-to-day operations and large-scale transformations. Deloitte helps agencies in their efforts to address today's biggest challenges and build a stronger foundation for tomorrow. To learn more, visit deloitte.com/federal.

About Government Business Council Industry Insights
As Government Executive Media Group's research intelligence division, the Government Business Council (GBC) is dedicated to advancing the business of government through analysis, insight and analytical independence. As an extension of Government Executive's 40 years of exemplary editorial standards and a commitment to the highest ethical values, the GBC joins with industry leaders to study influential decision-makers from across the federal government and produce intelligence-based research and analysis.

About Government Executive Media Group
As part of Atlantic Media Company, Government Executive Media Group is dedicated to the mission of "informing and challenging the national discourse" through serving federal managers and executives across government. Government Executive Media Group is the #1 media resource for federal decision makers¹ and the essential marketing partner for companies seeking intelligent engagement with members of federal acquisition teams. For more information about Government Executive Media Group, visit www.GovExec.com/mediakit.

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

SOURCE Deloitte