# Presentation: 551490

## NSF Business & Operations Advisory Committee MeetingNSF Business Analysis Project Status

- Arlington, VA
- October 22, 2003

*This document is confidential and has been developed by Booz Allen Hamilton solely for the use and information of the client  to whom it is addressed*

## Table of Contents

- Project Overview
- Organizational Context and Case for Change
- Key Findings and Recommendations
- Business Processes
- Tools and Technologies
- Human Capital
- Business Framework Assessment
- Next Steps

## The Business Analysis project is designed to enhance NSF’s position in leading the advancement of U.S. science and engineering research and education

- The Business Analysis project is driving improvements in key areas*
**Business Processes** – effective, efficient, strategically aligned business processes that integrate and capitalize on the agency’s human capital and technology resources
**Tools and Technologies** – flexible, reliable, state-of-the-art tools and technologies designed to support the agency’s mission, business processes, staff and customers
**Human Capital** – a diverse, agile, results-oriented team of NSF knowledge workers committed to enabling the agency’s mission and to expanding their capabilities
- The Business Analysis project is addressing NSF’s growing requirements and is determining if NSF should ...
- Maintain status quo
- Make incremental improvements
- Fundamentally change its core and supporting business processes

- * Identified in the NSF Administration and Management (A&M) Strategic Plan, April, 2002

## The approach will result in an integrated “roadmap” for NSF’s future success

- Inputs:
- FTE’s
- Funding
- Strategic Direction

- - Outputs:  >>10,000
-   grants managed
-   ($10B +)
- Outcomes:  results
-    of research

- Reviewing/ awarding increasingly complex, multi-disciplinary grants (against Process Scenarios)

**Task 4:  NSF Business Process Analysis/ Plan**

**Task 5:  Human Capital Management Plan**

**Task 6:  Technologies and Tools **
**Enterprise Architecture & Plan**

-                        Business Process Scenarios

**Task 1: Project Plan**

**Task 2:  Business Framework Assessment**

**Recommended Actions**

- Inputs:
- 1,300 FTEs
- $4.8B Funding
- Strategic Direction

**Task 3:  NSF Current Environment Assessment**
- Overall Performance

- Business Process

- Human Capital

- Technologies and Tools

- - Outputs:  10,000
-   grants managed
- Outcomes: results
-    of research

**Gap Analysis**

**Business Context**
**Stakeholder Analysis**
**Visioning Sessions**
**Evaluation Criteria**

- Review/Award Grants,
- Manage Awards, Oversee Large Infrastructure Projects

**Completed**

**Ongoing**

## The Business Analysis project is providing findings and recommendations to NSF senior leadership

**The Business Analysis project is providing findings and recommendations to NSF senior leadership**

***Human Capital***

*Subject Matter Experts*

***Business Processes***

*Subject Matter Experts*

***Information Technology***

*Subject Matter Experts*

***Information***

***Technology Team***

- Matt Newman

*Team Lead*

***Human Capital Team***

- Dr. Lori Zukin

*Team Lead*

***Business Processes ***

***Team***

- David Beaupre

*Team Lead*

***Human Capital***

*Subject Matter Experts*

***Business Processes***

*Subject Matter Experts*

***Technologies & Tools***

*Subject Matter Experts*

***Technologies***

***& Tools Team***

**Bill DeSalvo**

*Team Lead*

***Human Capital Team***

**Dr. Lori Zukin**

*Team Lead*

***Business Processes ***

***Team***

**Tim Koch**

*Team Lead*

***Business Analysis ***
***Steering Committee***
***(BASC)***

***NSF***
***Tools and Technology Team***
***Andrea Norris***

***NSF***
***Business Process Team***
***Altie Metcalf***

***NSF***
***Human Capital Team***
***Marilyn Dickman***

***NSF Senior Leadership***

***Joe Burt (COTR)***

_*NSF Senior Leadership:*_
*Director/Deputy Director*
*Assistant Directors*
*NSB Committee on Strategy and Budget*
*Business & Operations Advisory Committee (BOAC)*
*Senior Management Integration Group (SMIG)*
*Advisory Committee for GPRA Performance Assessment (ACGPRA)*
*Management Control Committee*

_*Business Analysis  Steering Committee (BASC):*_
*Machi Dilworth (BIO/DBI)*
*Andrea Norris (IRM/DIS)*
*Altie Metcalf (OPP/OD)*
*Craig Robinson (BFA/BD)*
*Martha Rubenstein (BFA/BD)*
*Debbie Crawford (CISE/OAD)*
*George Strawn (IRM/DIS)*
*Marilyn Dickman (IRM/HRM)*
*John Yellen (SBE/BCS)*
*Deborah Young (ENG)*

_*Booz Allen Project Team Includes:*_
*Technical Team*
*Project Management*
*Quality Assurance Review Board*

***Tom Miller (PM)***

## Projected Task Deliverables through September 2003

- Sep 03

- Sep 03

- Sep 03

**Deliverables**

- Delivered Early

- Delivered Early

- Project Plan
- Communications Plan
- Business Framework Assessment
- Current (Baseline)  Environment
- Business Process and Plan* *
- Human Capital Mgt Plan* *
- IT Implementation Plan & Enterprise Architecture
- Initial and Final Report

## NSF Business Analysis is transitioning from documenting the current environment to developing future scenarios based on findings and recommendations contained in this report

**Monthly Status Reports and Project Management Controls**

**Final Report**

**4.  Business Analysis**

**5.  Human Capital Management Plan**

**6.  IT Implementation & Enterprise Architecture**

**7. Final Report**

**4.  Business Process Analysis and Plan**

**5.  Human Capital Management Plan**

**6.  IT Implementation & Enterprise Architecture**

**3. Current**
**Environment**

**FY2002****	****                      FY2003****	****                     FY2004****	****                    FY2005 **

**Monthly Status Reports, Interim Analysis, and Business Integration **

**Start Date:**
**6/26/02**

**End Date:**
**9/30/05**

**09/30/03**** **

## Table of Contents

- Project Background
- Organizational Context and Case for Change
- Key Findings and Recommendations
- Business Processes
- Tools and Technologies
- Human Capital
- Business Framework Assessment
- Next Steps

## NSF interacts within a complex environment consisting of public, private and non-profit sector partners

**Award Recipients & **
**Program Beneficiaries**

**Academic Institutions**

**State & Local Agents**

**Nonprofit Organizations**

**International Researchers**

**Congress**

**OMB**

**OIG**

**GAO**

**Oversight**

**NSB**

**OSTP**

**Federal Government**

**Broader Society**

**Private Funding Groups**

**Science Interest Groups**

**International Science**
**Organizations**

**Federal Research**
**Agencies**

**Collaborators**

**NSF’s STAKEHOLDERS**

**Researchers & Educators**

**Research&Education Fellows**

**Research&Education Centers**

**Small Businesses**

**School Districts**

**Review Panels**

**NSF Advisory Committees**

**Policy and Advisory**

**Societal Partners**

**State & Local Agents**

*Source: Booz Allen Hamilton and Business Framework working group analysis*

## NSF faces several key administration and management challenges

**NSF faces several key administration and management challenges**

*Source:  Booz Allen Hamilton analysis. See appendices for additional detail.*

_***Summary of ***_
_***Key Challenges***_

***Increased Federal Oversight***

***Shifts in Strategic Direction Towards More Collaboration***

***Demands for Funds Continue to Increase***

***Expanded Use of Technology***

***Changes in Workforce Composition***

## Several attributes of the organization distinguish NSF from other agencies

*Source:  Booz Allen Hamilton Analysis.  See appendices for additional analysis*

## Based on NSF’s key challenges, some of NSF’s organizational attributes will require attention as the agency continues to grow

*Source:  Booz Allen Hamilton Analysis.  See appendices for additional analysis*

## NSF is effective in managing its business; however, the baseline analysis identified significant opportunities for improvement to help manage future growth

*Source:  Booz Allen Hamilton Analysis.  See appendices for additional analysis*

## Table of Contents

- Project Background
- Organizational Context and Case for Change
- Key Findings and Recommendations
- Business Processes
- Tools and Technologies
- Human Capital
- Business Framework Assessment
- Next Steps

## Integrated Process Teams examined (5) of NSF’s core processes

**NSF Value Chain**

***Processes Examined***

***Data Collection Activities***

***Analysis***

- Initial Interviews

- Internal Doc Reviews

- External Reports

- Data Mining

- Focus Groups

- 1-on-1 Interviews

- Process Baseline

- Community Requirements

***Areas for Improvement***

- Stakeholder Interviews

- Applicant Survey

**“****Quick” Wins**

- Can the opportunity area be addressed in the short-term?
- Will the opportunity positively impact the scientific community or internal business operations?

**Long-Term Opportunities**

- Can the opportunity be addressed in the long-term?
- Does the opportunity have strategic value?
- Will the opportunity positively impact the scientific community or internal business operations?

***Strategic Planning***

***      ******Resource ***
***      ******Allocation***

***     ******Program  ***
***       ******Development***

***   ******Merit ***
***    ******Review***

***     ******Award***
***        ******Management***
***      ******& Oversight***

***        ******Performance ***
***       ******Assessment***

***Knowledge Management***

*: Business Analysis Processes Examined*

- Team Exercises

## With an understanding of NSF’s current environment, several opportunity areas emerged in the analysis of the core processes

***Merit Review***

- Increase in Demand for Funds

**Developing a Capability for NSF-Level Coordination & Collaboration**

**Greater Internal Performance Management Required for Growth**

**Improving Reviewer Community Management**

***Areas of Opportunity***

***Future Scenario Drivers***

***Processes Examined***

**Process Improvements to Reduce Workload**

***Performance Assessment & Accountability***

- Increase in Multidisciplinary Research

- Further Automation of Processes

- Increased Federal Oversight and Emphasis on Performance Management

***Resource Allocation***

***Knowledge Management***

**Addressing the Timing of Commitments and Obligations**

**Facilitating Achieving Organizational Excellence Goals**

***Award Management & Oversight***

## In merit review, the increasing volume and complexity of proposals requires NSF to re-think how it conducts this core process	

**Merit Review**

**Performance Assessment & Accountability**

**Resource Allocation**

**Award Management & Oversight**

**Knowledge Management**

## In the future, NSF must formalize the criteria for how awards are managed and decide how best to leverage the project reporting system

**Award Management & Oversight**

**Performance Assessment & Accountability**

**Resource Allocation**

**Knowledge Management**

**Merit Review**

## In order to effectively grow, NSF must more pro-actively manage its administration and management

**Award Management & Oversight**

**Performance Assessment & Accountability**

**Resource Allocation**

**Knowledge Management**

**Merit Review**

## The resource allocation process can be improved by formalizing the priority setting process, exploring alternative technologies for budget formulation, and better managing the timing of its commitments

**Award Management & Oversight**

**Performance Assessment & Accountability**

**Resource Allocation**

**Knowledge Management**

**Merit Review**

## Table of Contents

- Project Background
- Organizational Context and Case for Change
- Key Findings and Recommendations
- Business Processes
- Tools and Technologies
- Human Capital
- Business Framework Assessment
- Next Steps

## Enterprise Architecture (EA) practices take a holistic view of an organization’s business processes, human capital and technology

***A common misconception is that EAs just describe an organization’s technology***

**Strategy &**
**Business Processes**

**Human Capital**

**Technology Infrastructure**

- The mission, vision, goals & objectives.  Identification of all business processes, information flows, and data required to support the business requirements

- The applications, data and technical infrastructure that support the Agency’s business areas through the creation and manipulation of information or data

- The internal and external people and institutions that interact with the organization through the business functions and the applications, data and infrastructure that support them

## An Enterprise Architecture typically consists of a baseline architecture, a target architecture and an implementation plan

**Baseline:**  a snapshot of an organization’s current business processes, human capital and technology
**Target:**  a vision and description of the organization at some future point (in NSF’s case, 2 to 5 years) based on:
- Business Analysis scenario design
- Human Capital Management Plan
- IT Target Architecture
**Implementation Plan:**  the probable path from the baseline to the target that can include any number of “convergence architectures”
- Convergence architecture:  points in the implementation plan at which significant baseline features are converted/transitioned to target features

## Analysis of NSF’s baseline and target architecture has revealed several possible improvements in the areas of computing environment, strategic information assets and IT Operations	

**Applications & Technology**

**IT Infrastructure**

**IT Operations and Staff**

**Computing Environment**

**Strategic Information Assets**

## Analysis of NSF’s baseline and target architecture has revealed several possible improvements in the area of IT Infrastructure and Applications & Technology

**Applications & Technology**

**IT Infrastructure**

**IT Operations and Staff**

**Computing Environment**

**Strategic Information Assets**

- NSF
- Progress

- NSF
- Progress

- NSF
- Progress

## Table of Contents

- Project Background
- Organizational Context and Case for Change
- Key Findings and Recommendations
- Business Processes
- Tools and Technologies
- Human Capital
- Business Framework Assessment
- Next Steps

## The Human Capital baseline included four work streams

**Workforce **
**Supply**

**Workload **
**Analysis**

**What are the characteristics of NSF’s workforce?**
**What types of work is NSF doing?**
**How is this work distributed?**
**What types of competencies are required to do this work? **
**How are we selecting, developing, evaluating, compensating, and rewarding those people who do the work?  **

**The Human Capital baseline included four work streams**

- Evaluation of NSF human capital management at both the organizational and HRM levels.  Uses the Human Capital (HC) Lifecycle as a guide

**Competency**
**Modeling**

**Human Capital **
**Management**
**Review**

- Assessment of volume and distribution of workload based on organization-wide workload survey

- Identification and definition of the general and technical competencies required for NSF positions/job families

**Description**

- Assessment of current workforce size, composition, and characteristics
- Identification of historical trends to help project future workforce characteristics

-  **NSF’s Human Capital **
**Baseline **

## The information from the baseline served as input into an additional human capital work stream, NSF’s Human Capital Management Plan (HCMP)

- The NSF Human Capital Management Plan is a strategic plan for NSF that provides an actionable “roadmap” and direction for improving human capital management within NSF and within the HRM Division
- The Draft HCMP, Version 1.0 was informed by the most recent available data on NSF’s baseline
- A working group with broad NSF representation developed the HCMP between May and September 2003
- The working group was composed of Administrative Officers, Division Directors, Program Managers, a Deputy Assistant Director, representatives of the Division of Human Resource Management, the union, and multiple Directorates/Offices including: CISE, BFA, IRM, EHR, BIO, MPS, and OD
- Booz Allen developed the HCMP concurrently with the Baseline HC Review in order to complete an initial  draft by September 30, 2003 (originally the HCMP was scheduled to be developed after the Baseline HC Review)
- As available, findings from the HC review were presented during relevant HCMP team meetings to inform the team on the “current state” of human capital
- Findings were validated and refined as necessary, and were used to guide the development of corresponding action strategies

## NSF should explore using the workforce supply analysis to informthe development of future target workforce objectives, and to identify gaps between current supply and future workforce requirements

**HR Practices:  Operational Issues**

**NSF should explore using the workforce supply analysis to inform****the development of future target workforce objectives, and to identify gaps between current supply and future workforce requirements**

**Competency Modeling**

**HR Practices:  Foundational Issues**

**Workforce Supply**

## NSF is working to improve the strategic and operational management of its human capital by developing a competency-based HR system that links business strategy to individual performance  

**HR Practices:  Operational Issues**

**NSF is working to improve the strategic and operational management of its human capital by developing a competency-based HR system that links business strategy to individual performance  **

**Competency Modeling**

**HR Practices:  Foundational Issues**

**Workforce Supply**

## NSF should continue to align its business strategies with human capital improvements and clarify and communicate HC management strategy and responsibilities

**HR Practices:  Operational Issues**

**NSF should continue to align its business strategies with human capital improvements and clarify and communicate HC management strategy and responsibilities**

**Competency Modeling**

**HR Practices:  Foundational Issues**

**Workforce Supply**

- NSF
- Progress

- NSF
- Progress

- HCMP
- Action

- NSF
- Progress

## NSF should explore creating a workforce plan / blueprint to determine future workforce size, composition, and mix

**HR Practices:  Operational Issues**

**NSF should explore creating a workforce plan / blueprint to determine future workforce size, composition, and mix**

**Competency Modeling**

**HR Practices:  Foundational Issues**

**Workforce Supply**

- HCMP
- Action

- HCMP
- Action

- HCMP
- Action

## Table of Contents

- Project Background
- Organizational Context and Case for Change
- Key Findings and Recommendations
- Business Processes
- Tools and Technologies
- Human Capital
- Business Framework Assessment
- Next Steps

## By developing evaluation criteria and ranking NSF against these criteria, the Business Framework Assessment working group found areas for improvement in future business models

**Evaluation Criteria**

**Increase responsiveness**

**Drive excellence**** **

**Promote agility**

**Build workforce **

**Foster innovation**

**Reinforce**** core values**

**By developing evaluation criteria and ranking NSF against these criteria, the Business Framework Assessment working group found areas for improvement in future business models**

**Evaluation Criteria Description**

- Provide effective and responsible stewardship of the public trust

**Current Position**
**Weak****	****            Strong**

- Foster excellence and innovation in S&ER&E

- 1          2          3          4         5

- Explore and promote high risk forefront S&ER&E

- Attract, develop, retain and maximize the impact of a talented workforce

- Meet changing needs and requirements through agility and innovation

- Instill and continually reinforce NSF core values

- 1          2          3          4         5

- 1          2          3          4         5

- 1          2          3          4         5

- 1          2          3          4         5

- NA          2          3          4         5

- ?

- Source: Generated by  Business Framework Assessment working group, September 9, 2003

## NSF highlighted key areas where current business processes do not meet future needs – linking planning to resource allocation and performance was listed as critical

**Strategic**
**Leadership**

**Critical **
**Capabilities**

**Identity**
**and Values **

**Budget**
**Allocation**

**Processes **
**& Systems**

**Holding**
**Co.**

**Strat.**
**Oversight**

**Active**
**Mgmt**

**Op.**
**Involved**

**Performance**
**Management**

*Source: Generated by Business Framework Assessment working group, September 23, 2003 and Booz Allen Analysis*

**Findings**

- NSF does not have a core values statement (NSF has mission statement)

- The currently PA&A process is retrospective and is not linked to RA process

- NSF currently has training through academy but no developmental planning

- Lack critical linkage between RA, PA&A and planning processes

- NSF does not have a unified IT standard** **

- Lacking critical linkage between planning, RA and PA&A processes

**N/A**

**Implications for Design**

- With greater oversight and accountability NSF will have the difficult task of justifying how it has chosen to spend its budget based upon its strategic goals, performance and budget allocation targets. NSF should have a core business process which links RA, PA&A  and strategic goals.

-  As NSF grows it will have in place a set of guiding principles in the form of its core values that will allow NSF to never loose sight of its most important attributes.  It will also provide a vehicle for ensuring organizational integrity .  NSF should have a core values statement  shared across organization

- With increased oversight and accountability NSF needs to have a system by which PA&A will feedback directly into the strategic planning, program planning and RA decision making process

- As NSF continues to grow it will become increasing more dependent upon optimizing human capital potential and given this need NSF should have a developmental plan for each employee and employee category

- Without a well defined linkage between RA,PA&A and strategic goals how will NSF decide how to best direct limited resources in the face of greater monetary demands by the S&ER&E community.  NSF should have a strategic planning and program planning core business process that links all of the above factors to RA.

- In an environment of increased demand and complexity there will be a need to exploit opportunities to improve organizational efficiency  in terms of devising better strategies for shared services in particular NSF should have a unified IT platform

**Critical**
**Focus**
**Required**

## Strategic and program planning should be the core business processes that link RA, MR, AM&O and PA&A into a robust performance management cycle

**Strategic and program planning should be the core business processes that link RA, MR, AM&O and PA&A into a robust performance management cycle**

**“****Mission Direct”**
**(Core) Processes**

**“****Mission Support”**
**Processes***

**Administrative Mgmt**

**Financial Mgmt**

**Human Resource Mgmt**

**Internal Risk Mgmt**

**Knowledge Mgmt**

**Legislative Creation**

**Public Affairs**

**Regulatory Creation**

**Supply Chain Mgmt**

**Technology Mgmt**

** These processes are in compliance with OMB Business Reference Model*

## Table of Contents

- Project Background
- Organizational Context and Case for Change
- Key Findings and Recommendations
- Business Processes
- Tools and Technologies
- Human Capital
- Business Framework Assessment
- Next Steps

## Where are we going from here?

- Preparation for Director/AD briefing on October 28
- Business Process
- Best practice research, scenario development, and preliminary business case development
- Merit Review (MR)
- Award Management & Oversight (AMO)
- Resource Allocation (RA)
- Performance Assessment and Accountability (PA&A)
- Human Capital
- Workload Survey
- Prioritized Human Capital Management Plan (HCMP)
- “As Is” Competencies
- Finalize HCMP v1
- Task 4 integration
- Human Resource Management (HRM) Business Process Reengineering (BPR)
- Tools and Technologies
- Develop initial “Integrated IT Implementation Plan”
- Update Enterprise Architecture
- Develop IT Business Cases
- Task 4 Integration