United States
             Environmental Protection
             Agency
                        Office of
                        Administration and
                        Resources Management
                                                     September 1994
SERA    Reinventing EPA —
             Steps Toward  A
             Stronger Workforce
                        STRONGER
                        WORKFORCE
          LEADERSHIP
                        Empowerment
                        Diversity
                        Labor/Mgmt
                        Partnership
                        Restructuring
• Vision

• Mission

• Values
               STRONGER
               WORKFORCE
              • Empowerment
              • Diversity
              •Labof/Mgmt.
              Partnership
              •Restructuring
                GUIDING
                PRINCIPLES
                         • Ecosystem Protection
                         • Environmental Justice
                         •Pollution Prevention
                         •Strong Science, Data
                         •Partnerships
                         •Errv. Accountability
                         • Reinventing Mgmt
                           Environment&l
                           Indicators
                           Customer Service
                           Standards
•Vision
• Mission
• Values
 BETTER
PROCESSES
   • PtanrdnpyBudgeting/
   Accountability
   •Contracts/Grants
   • Personnel Mgmt.
   •Permits
   • Reg. Development
   Enforcement
                                        Customer Service
                                                   Employee Fulfillment
                                                     Environmental Results
          Guidance for Implementation Plans
               (Includes 11/21/94 Revision to Appendix A)
                                                     Recycled/Recyclable
                                                     Printed with Soy/Canola Ink on paper that
                                                     contains at least 50% recycled fiber

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                   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                 WASHINGTON, D.C.  20460

                                      SEP '] 0
                                                                     THE ADMINISTRATOR
       One of the most challenging aspects of our reinvention efforts is to change the way
 our organization works--our various infrastructure roles, responsibilities, and behaviors.
 We have had many successes using the traditional media-specific, "stovepipe"
 organizational structure, and our traditional way of thinking and operating. However, in
 today's climate, with a new generation of environmental problems, it is clear that an eco-
 system, sector-based, cross-media approach, with a greater focus on customers and
 employee empowerment, is more effective.

       On August 8th,  I announced my decision to accelerate the process of organizational
 and management change at EPA. After discussions with many of you, I was convinced
 that collectively we were ready to begin the process of transforming EPA into a more
 effective, flexible, and responsive Agency. One aspect of this is strengthening our
 workforce, which involves developing a shared vision and values, increasing our focus on
 the customer, valuing and increasing diversity and empowering our workforce, working
 collaboratively, and creating an organizational infrastructure that meets the intent of the
 National Performance Review.

       The attached guidance provides  information in each of these areas; it is a
 framework for developing your organization's Reinvention Implementation Plan due to me
 by March 31,  1995. This guidance is not prescriptive, but is designed to expand your
 thinking and suggest a  process for reinvention efforts. Appendix A describes the areas
 that are to be addressed in your Reinvention Implementation Plans.

       This is a new field, and everyone, across government and in the private sector,  is
 struggling and learning together. I know many of you have begun your reinvention efforts.
 I applaud your initiative and hope this guidance provides additional food for thought. I
 would  like you to have an open, participatory process for developing and implementing
 your plans. Please keep in mind that our unions are to be full partners in the reinvention
 process.

       I look forward to working with you as this process unfolds. I am confident that we
 have embarked on a journey to create an Agency that is more responsive to today's
complex environmental  issues and that fosters a workplace environment where employees
can contribute their  full talents toward achieving environmental results.

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"Our  new  strategic  plan  points  to  a new generation  of
environmental protection.  We are moving from sole use of
media-specific  regulation  to  an  approach  that employs
flexibilityf  innovation  and  common  sense,  along  with
traditional approaches,  in meeting our environmental goals.
This new approach requires us to change the way we operate
and assure  that the skills and talents of every employee
contribute to fulfilling our environmental mission."
             EPA Administrator Carol Browner

              Memorandum to All Employees
                    August 8, 1994

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REINVENTING EPA
                                            Table of Contents
                           Table of Contents
      Introduction
I.     A Reinvented EPA	 1

II.    Shared Vision and Values	 5

III.    Customer Focus  	  11

IV.    Diversity	  19

V.    Working Collaboratively 	  25
            Empowerment, Delegation, and Shared Responsibility	  25
            Teams	  29
            Management Behaviors	  36

VI.    Organizational Layers and Design	  41
            Organizational Layers  	  41
            Redesigning Organizational Structures	  47

VII.   Implementing Change	  61
Appendix A:

Appendix B:

Appendix C:



Appendix D:
Reinvention Implementation Plans

Helpful Resources

OMB Definitions of Supervisor, Administrative,
and   "Headquarters"   Personnel  for
Redeployment

Memorandum Describing Agreement Between
EPA  and  Headquarters  Unions relating to
Labor Participation in Reinvention Activities
                                           U.S. Environmental Protection Agency
                                                 5  Library (Pt.i2J)

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REINVENTING EPA                                                     Introduction
                               Introduction
      Organizations across the country are changing the way they do business. The
trend is  noticeable both in academic journals and in real-life testimonials  from
organizations of all sizes and backgrounds, from the public, private, and not-for-profit
sectors. Organizations everywhere are "reinventing" themselves. This is a broad term
which encompasses a  wide range of activities.  In this  document we attempt to
discuss the major workforce and organizational change areas included under the term
reinvention, as they apply to EPA.  This goes beyond rhetoric-we are part of a major
change, and EPA is moving in an exciting new direction toward increased productivity,
collaboration, and understanding.  The goal of this document is to provide you with
the information you need to help move the change process along.

      These changes will not be easy.  They will require changes in management
style, level of employee participation in work decisions and organizational operations,
decreasing layers of review, and increasing the span of control for managers, to name
a few.  However, proper preparation will  minimize the anxiety and disruptions these
changes produce, and the result will be a richer, more productive organization with
an improved work environment and improved responsiveness to customers and other
stakeholders.

      Labor organizations play a critical and necessary role in reinventing EPA. As the
exclusive representatives of bargaining unit employees, the unions must be partners
with management in all of our reinvention and reform initiatives. That means involving
them from  the  outset in  the design,  structure, and implementation of the change
process. It also requires an open sharing of information with the unions.   Most
importantly, the unions' involvement must be seen as an integral ingredient for the
success of any of these efforts.  This document assumes that you will have involved
the appropriate labor organization(s) from the beginning of whatever process you are
using.  If you have  questions or would like more information, your Labor Relations
Advisor is available  to help you.
Who Should Read this Document

      This document is intended to aid readers in transitioning to a reinvented EPA.
It is specifically directed toward:

      •     Individuals writing Reinvention Implementation Plans for their respective
            organizations;

      •     Managers at all levels implementing reinvention activities; and
                                     in

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REINVENTING EPA	Introduction

      •     Employees interested and involved in assisting their organization with its
            reinvention efforts.
Scope of Document and EPA Change Efforts

      This document is divided into seven major sections and 4 Appendices. Five of
the sections focus on  major change areas and are divided into two major parts,
beginning with a discussion of the theory and reason for the change discussed: "What
it is and Why it is Important," and concluding with practical tips on how to implement
that change:  "Where to Begin" and "Things to Consider." The five change sections
are:

                  II.    Shared Vision and Values
                  III.    Customer Focus
                  IV.    Diversity
                  V.    Working Collaboratively
                  VI.    Organizational Layers and  Design

The document concludes with section VII., Implementing Change,  a framework for
identifying and implementing the changes.

      EPA's  move to a reinvented organization  cannot  happen in a  vacuum.
Reinvention is not a linear or singular process. It encompasses progressive processes
in which each initiative builds on, is integrated with  and interdependent of the other
initiatives, where the sum is larger than the parts.  Several EPA organizations have
begun "parts" of their reinvention activities; some have undertaken reengineering
processes, while others have largely focused on reorganization planning. As you read
this  document, determine where you are  in the "larger"  picture and what your
organization needs to do to realize greater benefits of looking at  and undertaking
reinvention as a whole system.  It is important to remember that just reorganizing the
structure of an organization only provides a new shell, it is the reinvention of internal
relationships  and operations of an organization that get at the heart of  enduring
change.

      This document  covers  a  major area  of reinvention-building  a  stronger
workforce. It discusses the major themes  of strengthening the workforce, and also
deals with several tools for reaching this goal, such  as a shared commitment to
purpose, organizational and interpersonal values, employee participation, work done
in teams, restructuring an organization, and, the importance of re-engineering core
work processes.   Other aspects of  EPA  strategic reinvention are not discussed,
guiding  principles for  environmental protection such  as  ecosystem  protection,
environmental justice, pollution prevention, etc, and  measures such  as environmental
indicators and customer service standards. This document strives to help EPA begin
                                      iv

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REINVENTING EPA    	Introduction

the transition to a reinvented agency through the largely cultural changes necessary
to sustain this change.

      Appendix A provides information on what Offices  should include in  their
reinvention implementation plans, based on the information and processes described
in this document.  For help or further information on some of the subjects discussed
in the document, Appendix B lists reference materials ranging from books and articles
to training courses, diagnostic tools, and change consultants.  Appendix C provides
the Office of Management and Budget (OMB) definitions of supervisor, headquarters
employee, and employees that fall into the "administrative" category.  Appendix D
contains a memorandum that discusses union  representation  in  Headquarters
reinvention committee activities.

      This document was prepared by the Management and Organization Division's
(M&O)  Reinvention Guidance  Team under the  auspices  of the  Administrator's
Management Committee  (MC).  If you have questions concerning the document,
please contact your representative on the MC or M&O.  For additional copies of this
document, please contact EPA distribution at (202) 260-5797.

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REINVENTING EPA             •                                 I. A Reinvented EPA
                         I.  A Reinvented EPA
      EPA, like public and private organizations across the country, is undergoing a
significant change. This evolution is toward more responsive organizations with better
decision-making, greater customer satisfaction, and improved employee commitment
and satisfaction. The Clinton Administration initiated several activities to create a
more responsive government, most notably the National Performance  Review (NPR),
to improve government practices and increase efficiency, to streamline and create a
"government that works better and costs less."
Driving Forces
  "Top down bureaucracies no longer work very well in either the public or private
  sectors.   As cutting-edge  businesses  have done, we must streamline our
  operations, cut management controls, and empower our workers."

                        National Performance Review
      EPA faces many challenges from the NPR and the various Executive Orders to
flatten, or "delayer," the organization, increase the number of staff per supervisor, and
streamline our processes through employee involvement. Administrator Browner fully
endorses the NPR recommendations and other reinvention activities. She stated in a
recent memorandum to all employees, "Our goal for  reinvention is to create an
organization that is more responsive to today's complex environmental issues and that
is committed to management for environmental results." The Administrator is placing
particular emphasis on improving diversity (utilizing the full capabilities of the entire
workforce) and empowerment (greater employee involvement and self-commitment)
to achieve these goals.

      To reinforce her commitment to reinvention and move the Agency toward these
goals as quickly as possible, Administrator Browner announced on August  8, 1994,
an acceleration of the organizational and workforce  reinvention to September 30,
1996-a goal two years earlier than the Executive Order mandate.  She decided to
accelerate delayering as part  of a broader reinvention process that supports  new
directions in  the Agency environmental programs.   This will  stimulate a  more
aggressive pursuit toward a reinvented EPA; a new way of doing business that is built
on the principles of empowerment, customer satisfaction, and organizational flexibility.

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REINVENTING EPA	I. A Reinvented EPA

The 1:11 ratio and reinvention implementation plans are devices to help the Agency
move to operating differently in a timely manner, but should not be viewed as the
ultimate goal.  Offices must take a comprehensive look at themselves to determine
where they are, where they need to go,  and what  is the best way  to  facilitate
effective change in  their organizations.   The  emphasis is on  moving from the
traditional rigid, hierarchical  organization  where work is  compartmentalized and
control-based, to a flexible, innovative, and  more responsive organization where
responsibility is shared and the focus is on interrelationships, employee involvement,
and stakeholder needs.
Characteristics of a Reinvented EPA

      EPA is moving in a new direction programmatically, which depends upon and
supports an associated cultural change. As an agency we are changing the way we
do business to focus more on ecosystem and "common sense", stakeholder-based
approaches.  By focusing on this goal, the individual parts of  EPA will move in a
common direction to a  successfully reinvented  Agency.  The efforts currently
underway are necessary to this shift. Only through refocusing EPA to better deal with
stakeholders, work more collaboratively both inside  and outside the Agency, and
maximize workforce productivity  through  valuing  diversity and  empowering
employees, can these environmental protection initiatives be fully successful.

      EPA, like many large hierarchical organizations, is characterized by a traditional
top-down, multi-layered,  stovepipe structure and control-based management style.
The organization is segmented into divisions and program groupings, separating staff
who work on related problems and creating artificial  organizational boundaries and
barriers.  Critical decision-making power resides at the top, along with  traditional
management control. Each employee has a place and a  specific function,  but is also
distanced from understanding the interrelationships of the Agency's programs as a
whole and how their individual work relates to the  mission of the organization. EPA
has experimented  with  matrix management,   cross-media  teams,  and other
"boundaryless" ways of operating. In a reinvented EPA, we will continue to explore,
invest in, and expand such models to more effectively further the Agency's mission.

      A reinvented EPA is about breaking down these traditional hierarchical barriers
and boxes to work as a flexible and integrated system.  It's about:

      •     Creatirig, with all stakeholders, a shared picture of the desired
             future and an understanding of the Agency's work which builds
             a collective sense of what is important and why; and

      •     Collaborating-crossing  internal  and external boundaries  to
             integrate service delivery and  policy development;

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REINVENTING EPA
                                                I. A Reinvented EPA
      •     Utilizing fully each member of the workforce, and soliciting
            ideas from varied perspectives;

      •     Creating partnerships within and between agencies,  empowering
            employees  with the  authority,  skills,  training, and information
            required to do the job, and redefining the manager's role to one of
            coach and facilitator; and

      •     Eliminating  unnecessary layers and refocusing Agency efforts to
            manage across, not up and down the organization.

To achieve this, EPA must create a shared vision and values, focus on the Agency's
customers, embrace and utilize the diversity of the staff, foster employee involvement
and collaborative work, and eliminate unnecessary layers of oversight.
   TRAD ITIONAL
  ORGANIZATIONS
                                                RE INVENTED
                                                   EPA
                                              Customer
                                               Focus
            D i versIty
New
Competences
Sk I Ms
Behnv I ors
Check
Plan
Learn
                                Shared  Vision
                                 and  Vet I ues
                                              VALUES BASED
                                                ACT IONS
           DIMENSIONS
                       Work i ng
                   Co I IaboratIveI
                              Appropr r ate
                               Overs Ight
                                                           Structures
      o     Creating a Shared Vision and Values

      A foundation for change at EPA begins with a clear vision and values
      that all employees share and understand, and has flexibility to respond
      to a changing, complex environment.  Visions paint a picture of the
      desired future, tapping into an organization's deeper sense of purpose.
      Articulating the  organization's specific values and goals makes the
      purpose real, motivates employees, and engenders commitment.

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REINVENTING EPA	I. A Reinvented EPA

      o     Strengthening Customer Focus

      Focusing on improving customer service and achieving greater customer
      satisfaction is essential to accomplishing the Agency vision for a clean
      environment. This means identifying our primary customers and their
      needs, involving all our stakeholders to the greatest extent possible, and
      providing them the best service possible.

      o     Valuing Diversity

      Creating a  culture that embraces the  talents and ingenuity of EPA's
      entire workforce  to maximize the productivity and potential of our
      organization is critical  to a reinvented Agency.  This  means cultivating
      and capitalizing on the  spectrum of talents, viewpoints, and experiences
      stemming from each person's unique  background, and viewing  these
      differences as strengths rather than weaknesses.

      o     Working Collaboratively

      A reinvented EPA requires employees to think and act differently.  EPA
      employees must work together to create  a new work environment built
      on  trust,   open  information  exchange, shared  responsibility, and
      corresponding accountability. Employees must work together-up, down,
      and across  the organization.

      o     Organizational Layers and Design

      Reducing unnecessary structural and control layers and utilizing flexible
      work teams can improve commitment and responsible actions, decision-
      making, customer service, information flow and quality, and lead  to
      greater job  satisfaction. Reorganization  is a valuable tool for bringing
      about change, which  may be used to great advantage to  produce a
      reinvented EPA.

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REINVENTING EPA                                          II. Shared Vision and Values
                     II. Shared Vision and Values
      In a reinvented EPA, the employees in each organization (AAship, region, office,
division) work together to create a shared vision and values that the entire group is
committed to and understands.  Through a shared overall vision and values for EPA
as a whole, the separate parts of the agency will move in a common direction with
their own individual reinvention efforts to result in a coordinated transition to a new
way of operating. One way in which EPA and other government agencies differ from
the private sector is a more frequent turn-over of leadership. Vision and values shared
by the Agency can help provide continuity and ease the transition during periods of
change.  Vision and values give the organization shape and direction, and create a
shared sense of purpose/ or mission, for all involved.
               WHAT IT is AND WHY IT is iMPORTANT-Vision  and Values
  "A shared vision - supplemented with clearly understood goals and shared values
  among everyone in the organization, from top to bottom - can be the basis of
  intelligent decisions."

                            Vice President Al Gore
Vision

      A vision is an ideal image of the future; it is a statement of where you want
your organization to be.  Visions  are always  evolving to adapt to the changing
environment as new opportunities and initiatives emerge to better fulfill the Agency
or individual program missions.  A vision:

      •     Clearly shows how the organization fits into the Agency
            mandate of environmental protection;

      •     Serves as a beginning point for creating a new organization;

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REINVENTING EPA	II. Shared Vision and Values

      •     Challenges the organization to change by painting a picture
            of what the organization strives to become—an image of the
            future the organization seeks to create;

      •     Is  best created through  a group effort and  flows  from
            extensive contact  with  customers and  colleagues;  it
            emerges  from  reflection on the organization's purpose by
            many or all of the organization's employees;

      •     Is easy to understand and characterized by flexibility and
            creativity (clarity and brevity are helpful);

      •     Creates an environment that fosters greater commitment,
            focus,  ownership, a sense of purpose for the organization
            as a whole, and evokes enthusiasm and action; and

      •     Evolves continuously—the vision grows and changes over
            time.

A vision should not be:

      •     Created  at the top and  given to the organization; this
            translates into "work hard so the leader's program will
            succeed," and does not create commitment or inspiration;
            or

      •     Something the leaders say, but not what they do. which
            creates mistrust, loss  of commitment, and loss of focus.

      A shared vision guides the organization to changes that are appropriate and
necessary.  It results in a  "future pull," managing from the future back instead of the
present forward.  It is not easy to  create a vision;  it means gathering many people
together with diverse  viewpoints and sorting through large quantities of information.
Shared visions often  emerge from information overload; from a sudden collective
realization of how all the  pieces fit together to form a larger vision for the future.
Values

      Values are broad principles that influence nearly every aspect of our lives: our
ethical judgment, the way we respond to others, and our commitment to personal and
organizational goals.  While visions refer to the future and to what the organization
should be, values  comprise the things that are most important to us as we work
within the organization.

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REINVENTING EPA	•	II. Shared Vision and Values

      Organizational values form the basis for the organization's culture and should
be shared by all employees. Personal values are often an important reason people
choose to work for EPA--employees are committed to public service and protection
of the environment.  This makes strong complementary values even more important
to recruiting and retaining quality employees and sustaining a high level of morale and
productivity.  As Administrator Browner has stated, "as an Agency we must share
common values." When employees' individual values and the organizational values
are complementary,  a clearly stated, frequently repeated set of core values emerges
that guides decisions.  Complementary value sets provide clarity to employees about
organizational values and expectations, and make it easier to  cope with  the often
conflicting demands of work and personal affairs.

When employee and organizational values are complementary they create:

      •     Self-esteem;

      •     Increased levels of organizational loyalty;

      •     Understanding about key organizational goals;

      •     Ethical  behavior;

      •     A strong work ethic;

      •     Reduced job stress;  and

      •     Enhanced   commitment   to  the Agency  mandate  to  protect the
            environment.

      Unmatched values between employees and the organization drain energy from
personal effectiveness  and organizational  productivity.   The following graphic
illustrates some traditional organizational values, and their potential counterpart in a
reinvented EPA.

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REINVENTING EPA
                          II. Shared Vision and Values
                        Changing  Organizational  Values
        AUTHORITY DRIVEN
      Encourage Conformity
      Reward Behavior
      Focus on Fixed Process/RuIes[
      Goal-Crlented
      Control led
      Management chain Saxisfact ion
       COMPARTMENTAL I ZED
      Vertical Communlcat Ion
      Rigid Structure
      Independent
      Competitive
      Discourage Innovation
     ORGANIZATION AS PRIORITY
       Impersonal
       Duteous at any Expense
       Hierarchical  Power Structure
       Individual  Gain
       Directing
BooooeeeoooE
                  COMPETENCE DRIVEN
               Values Diversity
               Rewards Abl IIties
               Focus on Outcome
               Customer Oriented
               Empowered
               Employee & Customer  Satisfaction
                    COLLABORATIVE
               Free and Open Communication
               Flexible Working Relatlonshlps
               I nterdependent
               Cooperot i ve
               Encourage Risk and Innovation
      BALANCE BETWEEN
ORGANIZATION  AND INDIVIDUAL
    Congenial/Helpful
  ^. Qua I 1ty Outcomes from Co I Iaborat1 on
    Respect for individuals
    Individual Health and Dignity
    NurturIna/DeveI op 1na
                 WHERE TO BEGiisi-Creating Shared Vision and Values
       To develop a shared vision, and values, it is crucial that the organization take
a step back and determine the work it needs to do in the future.  The organization
should examine its Current mission, functions, etc.; analyze its stakeholder needs and
wants (both internal and external); and determine where the organization needs and
wants to go.
                                          8

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REINVENTING EPA
II. Shared Vision and Values
                           THINGS TO CONSIDER
       Determine where you are now, including questions such as: does the
       organization have a clear  vision and set of values, how does the
       organization treat its  people, are employees  involved in decision-
       making, etc.

       Determine what your organization is required to do: analyze laws,
       regulations, Executive Orders, and other mandates.

       Find out what your organization's employees,  customers, and other
       stakeholders  need and want you to do; talk to, listen  to, and/or
       survey these  groups.

       Examine what senior leadership wants  your organization to do;
       analyze all written goals, strategic plans and reinvention objectives to
       determine the vision for, and needs from, the organization.

       Assess external trends, current events, etc., which impact the work
       of the organization.

       Solicit feedback using an interactive and inclusive process to obtain
       input about what employees want/think the organization should do
       and how it should interact. Ask questions such as:
                How is the organization tied to the Agency's mission?
                What purpose would the organization serve?
                What reputation would the organization have?
                What contribution would the organization make?
                What values would the organization embody?
                How should we interact and communicate?
                What are the core issues  and potential opportunities for
                improvement that the organization should address?
                How can diversity be utilized?
                What would  it take to create employee satisfaction?
                How to create a positive, productive work environment?
                What would  an empowered organization look like?
                How would an  empowered organization operate?
       Using  an inclusive process,  put all this  information together to
       develop a brief, clear expression of the organization's shared vision
       and values.

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REINVENTING EPA
                                                              III. Customer Focus
                         III.  Customer Focus
      Becoming more responsive and customer-focused is a primary driver in the
Administration's  reinvention strategy.   One  recommendation  of the  National
Performance Review is to move away from oversight and control, and increase the
number of  employees who deal directly with the customer.   President Clinton's
Executive Order on Setting Customer Service Standards says "The standard of quality
for services provided to the public shall be: Customer service equal to the best in
business."

      EPA provides a variety of services, such as research and development, rule-
making, inspections and enforcement, technical assistance, financial assistance, and
information management.  We must  involve stakeholders in examining how we do
business to ensure that everything we do supports the ability of frontline workers,
inside  and  outside EPA,  to deliver improved environmental results  to  all our
stakeholders, including customers, clients,  and employees.
               WHAT IT is AND WHY IT is iMPORTANT-Customers
  "We are committed to achieving customer service equal to the best in industry.
  We carry out our mission through increased public participation, increased public
  access to information and increased public access to decision-makers."

            EPA's Customer Service Policy, Putting Customers First
      EPA's ultimate customer is the public. To best serve the public, we work with
a continually changing set of interim customers which ranges from offices within EPA
to outside  constituents such  as:  Congress;  federal,  state,  tribal, local, and
international governments; the regulated  community; and environmental groups.
Providing all these customers with the best possible service is how EPA can tackle the
difficult task of responding to the needs of the  public as a whole.
                                    11

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REINVENTING EPA	III. Customer Focus

      Continuous listening  to, learning about, and  knowing your customers  are
cornerstones to determining how to adapt in a changing environment. Knowing your
customers means spending time with them. This means employees at aJi levels of the
organization must listen and learn from their customers and all other stakeholders; it
means anticipating  problems and opportunities and working on  solutions and
strategies together.

      Incorporating a customer-focused ethic into EPA will be a continual challenge.
Customers  who receive EPA services can be co-workers (internal customers) as well
as end users (external customers).  Customers have a stake in the work of  the
Agency, and thus fall into the larger group of stakeholders. Stakeholders include any
individual or organization with an interest in the  work of the Agency, including
Congress, the public, industry, environmental groups, employees, other government
agencies, states, etc.  Divisions of stakeholders aren't always clear; one group or
individual may be a customer for one part of the Agency and an employee for another.
Thus, it is  important for the needs of all stakeholders to be considered. Program
offices provide services externally to the  states, regulated community, Congress,
other Federal agencies and environmental organizations, as well as internally to other
offices in the Agency.  The Agency as a whole is the internal customer of support
offices such as the Office of Administration and Resources Management (OARM) and
the Office of General Counsel (OGC).  Internal customers are just as important as
external  customers; improved  service  within  the  Agency  enriches  the  work
environment, encourages organizational integration, and helps the Agency accomplish
its environmental mission. These services, both internal and external, are diverse and
sometimes  have competing customer needs.  These competing needs raise questions
such as:

      »•     How do we provide our regulated industries the support, flexibility
            and compliance assistance they need, while fulfilling our statutory
            mandates?

      >     How do  we meet the  individual needs of the States while
            maintaining national consistency and our oversight role?

      +     How do we meet the media-specific needs of Congress in the face
            of multi-media client needs?

      *•     How do we provide efficient, timely, and flexible support services
            to our  employees while  maintaining  Agency  consistency and
            appropriate oversight of taxpayer monies?

The Agency's challenge is to balance these types of needs, taking into account EPA's
shared vision and values, and the Agency's and individual organizations' missions.
                                     12

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REINVENTING EPA	•	III. Customer Focus

      As a regulatory agency we often need to promote actions, activities, and
attitudes to businesses, government, and individuals that they would not opt to take
on their own, even when they understand it to be in the best interest of the general
public.  Our goal is to build a cooperative and supportive relationship with  these
customers, supplying them  with the information and tools they need to be able to
pursue their business and personal activities in an environmentally "friendly" way.

      To achieve compliance it is sometimes necessary to work with businesses,
government, and individuals in an enforcement mode.  We  often have the challenge
of balancing competing  interests in carrying out our regulatory and enforcement
responsibilities. In all our relationships, voluntary and nonvoluntary, cooperative or
enforcement-related, our goal is to  handle all interactions  in a fair, courteous, and
professional manner.  Our  goal  is also to provide affected parties with a clear
understanding of the reasons for our actions.

      We are committed to:

      •     Reaching out to our customers to provide them with the
            information they need to make environmentally  sound
            decisions and to involve them in our decision-making and
            priority-setting  processes.

      •     Setting clear performance standards for our products and
            services,  assessing how  well  we  are  meeting  those
            standards, whether they are the  right ones, and adjusting
            our  activities  based  on  what  we   learn from  those
            assessments.

      To move the Agency closer toward this  goal, the Administrator announced the
"Common  Sense Initiative."   The  goal  of  this initiative is to achieve greater
environmental protection at less cost by looking at whole industries and involving a
wide range of customers in developing a new  generation of environmental solutions.
This approach will strengthen our ability to understand and  support key intermediary
customers in their delivery  of environmental protection.  This  contrasts with the
current pollutant-by-pollutant, medium-by-medium approach.
Customer/Employee Satisfaction

      The customer is generally concerned about two factors:

      •     Process-what they experience; and

      •     Outcome-what they get and how it compares with what
            they want.
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REINVENTING EPA
III. Customer Focus
      Customers  "see into" an organization through the words and actions of its
employees.  Research indicates that customer service satisfaction is directly related
to employee job satisfaction; the treatment customers receive reflects the treatment
the employees receive from their organization. Employees and customers tend to rate
service quality the highest when there is:

      •     Enthusiastic emphasis on the  importance of  service  to  an
            organization's success;

      •     Active support to satisfy aU  customers,  not just "high profile"
            customers;  and

      •     Good service provided the first time.
                                I dent i fy
                              Stalceho Iders
              WHERETO BEGiN-Creating A Customer-Driven Organization
      An organization  can become more customer-focused  by having  a clear
 understanding of whom the stakeholders are and what their needs and expectations
 are. It is critical to get input on stakeholder needs directly from the source, and to
 obtain feedback after  services are delivered.  This  process should be continually
 repeated, with frequent checks on whom the stakeholders are and what their needs
 are.
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REINVENTING EPA                                                III. Customer Focus
                           THINGS TO CONSIDER
       Move from media-specific service delivery to ecosystem and
       "Common Sense" stakeholder-based approach.

       Establish a profile to identify your stakeholders; who they are
       (internal and external), where they are located, and how best to
       communicate with them.

       Continually reassess the needs of all your stakeholders, with their
       input and involvement, and adjust your services accordingly;
       stakeholder needs change for various reasons, and services need to
       be flexible to adapt.

       Determine what your stakeholders want and expect from you;
       spend time listening to, understanding, and responding to their
       evolving needs and shifting expectations; be flexible to meet those
       demands; ask questions such as:

             •     What do you want?

             •     What do you really need?

             •     What do you expect in the future?

             •     How do you view our service?

             •     What problems do you encounter?

             •     How would you like our services improved?

             •     How do your needs conflict with the needs of other
                   stakeholders?

       Look at your own assumptions; examine whether they are barriers
       to what the stakeholder really  wants; verify your assumptions with
       the stakeholder.
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REINVENTING EPA                                                 HI. Customer Focus
                           THINGS TO CONSIDER
 •»    Develop with employees and customers a clear, concise and
       understandable customer service strategy; it should communicate,
       in specific action items, the things you need to do to satisfy your
       customers; it should help employees, customers, and other
       stakeholders understand who does what,  what they should do,
       how to do it, and why to do it.

 **•    Provide employees the information and skills they need to respond to
       stakeholder  needs.

 EP    Change internal processes that inhibit employees from helping their
       customers; tap into employee knowledge  on the types of services
       that leave a lasting, positive impression on customers—employees
       know first-hand the weak spots and failures in service delivery.

 «s-    Eliminate or clarify overlap of functional boundaries in your work
       products to  provide more efficient and identifiable services.

 «•    Examine ways to redeploy employees in supervisory,
       administrative, and "Headquarters" positions to positions which
       more directly serve teh customer, in conjunction with the NPR
       recommendations and OMB guidance.

 *?    Improve public access to information. Go beyond the traditional
       "public involvement" programs to more broad and diverse
       engagement processes, such as surveys, town meetings, focus
       groups, informal and formal meetings.

 **•    Train employees on benchmarking, and customer-related process
       reengineering to support improved service delivery.

 •&•    Make it easy for stakeholders to interact and work with you; make it
       easy for  them to "talk" to you (hotlines, electronic mail,  Internet,
       suggestion boxes, etc.);  make information,  services and complaint
       systems easily accessible.

 «s*    Treat  stakeholders like  partners to the extent feasible; consult
       stakeholders  with  conflicting  needs   to   obtain   consensus
       recommendations.  Get  stakeholders involved in federal  advisory
       committees, operational or fact-finding task forces or teams to work
       on developing approaches to finding solutions and strategies.
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REINVENTING EPA                                               III. Customer Focus
                           THINGS TO CONSIDER
       Demonstrate a desire to resolve situations the best way possible
       and within a timeframe which benefits both the Agency and the
       stakeholder.

       Incorporate customer service into performance agreements, awards,
       recognition, and promotion.

       Recognize the connection between employee and stakeholder
       satisfaction;

       •     Make space, equipment, training, and other employee needs
             a priority that gets done, not just talked about;

       •     Foster an environment that provides employees with the
             opportunity to learn, develop new skills, and be challenged;
             and

       •     Empower employees and give them the authority to meet
             stakeholder needs.
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REINVENTING EPA             •                                        IV. Diversity
                               IV. Diversity
      In order for EPA to respond effectively to the needs of its stakeholders, it must
utilize the talents and ingenuity of all of its workforce.  As federal agencies face
increasing workloads with fewer staff, it  becomes  important  to  ensure that all
employees contribute their full talents to the workplace. Both President Clinton and
Administrator Browner recognize diversity as an  important issue, and have named
diversity  as one of  the  priorities of  this Administration.   In her April 4,  1994
memorandum to employees, Administrator Browner stated:  "I remain unwaveringly
committed to  increasing  the diversity profile of all our staff and  particularly our
managers. I believe we can achieve our diversity goals even in an environment that
stresses a leaner management structure." The Agency's 1992 Cultural Diversity Task
Force Report shows that EPA is on its way to fostering a diverse workforce, but much
work still  lies ahead,  especially in reflecting  diversity throughout the organization at
all levels and in all program activities.
               WHAT IT is AND WHY IT is iMPORTANT-Vision and Values
  "By valuing diversity, we can  gain greater potential  and creativity  from the
  synergy of the workplace, recapturing commitment and unleashing pent-up talent.
  In short, we can turn the tide of employee dissatisfaction and put the work ethic
  back to work,"

                          Managing Workforce 2000
      Diversity is much more than affirmative action, or people of different ethnic
backgrounds.  There are many types of diversity, some are visible, others are more
subtle. Managing diversity in EPA means creating an environment that empowers and
permits individuals to recognize their full potential in pursuit of Agency objectives.
Employee diversity  encompasses not just race, gender, and ethnicity, but also a
variety  of other areas such  as age, functional  and educational backgrounds,
organizational  tenure, size  acceptance, sexual orientation, other lifestyles,  or
geographic origins.
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REINVENTING EPA
                                                                     IV.  Diversity
      As EPA's Cultural Diversity Task Force stated, diversity is " .... going beyond
the appeal of legal and social tenets of Affirmative Action.  It focuses on using all
people resources to get our job done." While affirmative action is seen as a way to
redress discriminatory practices, cultural diversity attempts to  ensure  maximum
utilization of all employees. Affirmative action and cultural diversity work together to
form a  strategy for workforce  planning and  utilization that can have significant
positive influences on an organization's overall performance.

      Diversity is an  asset to the organization if it is valued through  recognizing,
understanding, and appreciating differences.   It is an integral  component of  an
organization's success and viability, and should not only be tolerated, but encouraged,
supported, and nurtured.   It  impacts the  organization  significantly  on both
interpersonal and organizational levels.  On the interpersonal level, co-workers who
are sensitized to each other's differences are able to work in a positive and congenial
environment; on the organizational level, teams that appreciate and utilize the unique
talents  and perspectives of a diverse workforce  can benefit  through improved
services, solutions, and products.  The more teams represent the diversity of  our
customer base, (ethnic, geographic, skills, education, gender, etc.), the more likely our
services can reflect  our  customer needs.   In  order for valuing diversity to  be
successful, all  employees must understand their own strengths, weaknesses, and
biases, and how their own perspectives affect the way they interact with individuals
who are different from them; this means respecting each others' differences as well
as similarities.

      Successfully implementing the  Agency's diversity goals means  real change.
Accomplishing the goal may create some level of anxiety for many individuals. EPA's
workforce already consists of over half women and minorities and we must maximize
their talents at all levels of the organization.  While EPA is  tasked with  increasing
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REINVENTING EPA	IV. Diversity

diversity Agency-wide, with a specific emphasis on leadership positions, the challenge
has  much  broader implications  than  just  simply addressing  representational
imbalances.  EPA's diversity philosophy is based on the belief that it can create a
workplace  where all of its employees can realize their full potential.  To  build,
maintain, and take  advantage of the richness of diversity at EPA will take time,
resources, and persistence.  To do this, all employees must have the opportunity for
training; for fair treatment in  assignments, performance appraisal, and  promotion
opportunities; and for recognition for their contributions.  They must be free from
harassment because of their gender or group status.
              WHERE TO BEGiN-Utilizing and Improving Diversity
                            THINGS TO CONSIDER
       Create a current diversity profile of your organization and talk about what
       it means. A diversity profile might include demographics on experience,
       skill mix, age, education, gender, race, geographic origin, etc.

       Develop a shared vision (all employees in the organization) for achieving
       greater diversity in your organization, such as a target diversity profile
       that includes characteristics listed above.  EPA's workforce diversity goal
       should be to reach a workforce reflective of the diversity of the Nation's
       population.  Implementing diversity is an inherently participatory exercise,
       so involve everyone from the beginning.

       Create shared values and goals to help achieve your vision; begin with
       two or three goals that are possible and are  tied to the values of the
       organization and are important to everyone.  Communicate commitment
       to,  and status of, your diversity goals and opportunities to the entire
       organization frequently.

       Each AA/RA is responsible for negotiating specific workforce diversity
       goals with the Administrator, taking into account the current makeup of
       the staff in the organization. Consistent with organizational streamlining,
       these goals  would be expressed in terms of  diversity in the "positions of
       influence" that provide leadership to the organization.
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REINVENTING EPA                                                     IV. Diversity
                            THINGS TO CONSIDER
       The quarterly profile prepared by the AA, Office of Administration and
       Resources Management (OARM), and Director, Office of Civil Rights
       (OCR), can be a helpful measure and check point for reaching your goals.
       OARM and OCR provide the Administrator with an annual report on
       progress in workforce diversity and alert her to problem areas deserving
       attention.

       Expand part-time positions. Permitting and encouraging part-time
       positions is particularly attractive to employees with family
       responsibilities who currently find they must make a choice between their
       families and careers.  Part-time opportunities also  provide opportunities
       for physically-challenged individuals who are unable to work full-time.

       Make sure there are recruiting methods and diverse applicant pools from
       which to select employees and build skills for your organization.

       Look for ways to restructure and redefine support-staff positions,
       perhaps by implementing the Office of Human Resource
       Management's Administrative Support Career Management System
       to allow additional development opportunities for support staff.

       Promote diversity awareness by educating everyone on what diversity
       means; explore feelings,  beliefs,  and barriers to workplace issues. Set
       aside appropriate resources; involve the organization in diversity training;
       provide a variety of training  options to address skills mix and gaps
       identified by all employees.  You may meet some  resistance to
       implementing diversity, and  education is the means to turn resistance into
       support.

       Incorporate diversity in all aspects of the organization's activities; show
       commitment and involvement at all levels of the organization, and stay
       involved with implementing  diversity.

       Create opportunities for advancement into non-managerial high-
       grade career paths, and ensure diversity is considered.
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REINVENTING EPA                                                      IV. Diversity
                            THINGS TO CONSIDER
       Refocus expectations away from future supervisory positions, and
       emphasize future leadership opportunities throughout the organization
       (teams, cross-program initiatives, expert systems leaders, project
       leaders).  The benefits of involving employees in teams and other
       opportunities includes:

             •    Increased employee empowerment to manage a
                   project;

             •    Reduced management time; and

             •    Development of a well-trained and culturally diverse
                   feeder pool of staff who have practical experience in
                   managing teams and other initiatives and projects.

       Evaluate the progress of diversity implementation in your organization.
       Measure how the office is doing by starting with a  benchmark survey and
       diversity demographics, and follow up periodically through opinion
       surveys and open forums with groups and the entire organization; keep
       the diversity profile current as a baseline check for  reaching your goals
       and establishing new ones.

       Develop accountability measures to review, evaluate and monitor
       organizational performance to meet diversity goals. Examples of
       actions taken  by successful organizations addressing diversity
       include:

             •    Establishing clear criteria for promotions  and
                   expanding developmental opportunities to
                   increase under-represented groups in the
                   workforce at all levels;

             •    Developing criteria for managing and addressing
                   diversity in performance evaluations. Criteria
                   should include expectations for positive
                   performance in this area; and

             •    Creating special incentives and creative forms of
                   recognition to make diversity successful.
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REINVENTING EPA             '                            V. Working Collaboratively
                     V. Working Collaboratively
      One of the most challenging aspects of moving to a reinvented EPA is to
change the way the organization works-our roles, responsibilities, and behaviors. A
reinvented EPA must be driven  by employees working Collaboratively to fulfill our
vision and meet stakeholder needs in accomplishing environmental goals.

      Once  your vision  and  values  are established  through a  collaborative,
participatory  process,  and a  diligent  effort is  applied  toward  continuous
communication, a culture can develop over time where employees trust each other to
work to reach that vision.  Through hard work and persistence, EPA will develop a
culture where all employees are respected as being intelligent, committed,  and
energized, and having integrity and courage of conviction. Trust and responsibility will
be extended to all levels of the  organization.  Managers will increase their role as
coaches, enabling employees to expand their skills and thus increase the capacity of
the workforce.  With trust and  expanded skills come increased independence and
responsibility, often referred to as empowerment.
               WHAT rr is AND WHY rr is iMPORTANT-Empowerment,
               Delegation, and Shared Responsibility
  "EPA seeks to promote and achieve empowered employees who have the
  decision-making  authority, accountability, knowledge, and ability  to achieve
  quality results*"

                         Agency-wide Strategic Plan
      Empowerment leads to greater employee involvement and self-commitment.
It is a way of tapping into the underutilized potential in our workforce by sharing the
power,  trusting,  supporting,  and  assigning tasks to  match employee  skills.
Empowerment within an  organization allows employees to  be more responsive to
stakeholders; intrinsically links responsibility, authority, and accountability together;
and delegates these to appropriate levels for planning, performing, and completing
work.  Empowerment of EPA employees means giving them  the skills and tools
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REINVENTING EPA	V. Working Collaboratively

needed to do the job well, the responsibility for the accomplishment of specific work,
the authority they need to get the work done, and specific measures of accountability
that they are expected to meet.  This gives employees greater autonomy and control
over their projects. When employees solve the problem and implement the solution,
the responsibility stays with them. The group or individual owns the problem, the
idea for solving it, and the challenge of making the idea succeed. While trusting may
be difficult at first, the degree of trust increases with experience and proper employee
training.

      Delegating, formally or informally, is a way to empower employees and give
them more  responsibility. Informally, work may be organized differently to give staff
greater autonomy, more control over a project, or greater opportunities to perform
additional functions.  Formally, delegations of authority-official responsibilities given
to the Administrator by  Congress or Agency rules, and passed to the  Assistant
Administrators and Regional Administrators-can be  evaluated for  opportunities to
redelegate  to  lower levels  of the organization.   Empowering employees can only
happen in an environment where employees:

      •     Are kept informed;

      •     Have the experience,  training, and knowledge necessary to
            perform the  work;

      •     Communicate with others in the organization and their customers;
            and

      •     Receive acknowledgement, credit, and feedback for their efforts
            and contributions.

      In an empowered  organization, responsibility  lies with managers for setting
direction for the organization and its employees, and for coaching, removing needless
barriers, making  decisions  that  cannot be delegated  lower, and  evaluating staff
performance.  In addition, managers are responsible for providing employees with the
necessary  resources to do  good work.  As  employees are  empowered with more
responsibility, managers are freer to think strategically about short and long-term
issues which  may impact  the organization,  and to  use  their experience to coach
employees to help accomplish their tasks.  Employees  must take ownership and
accept  the responsibility to do  good  work and must be accountable for task
accomplishment and reaching goals within a predetermined framework.  They must
be supported in their work, not micromanaged or monitored for activities or quotas.
To share accountability, employees must be able to understand and tie responsibilities
to the big picture; sharing information at all levels of the organization helps to do this.
Shared power also results in higher job satisfaction and performance throughout the
organization.
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REINVENTING EPA	V. Working Collaboratively

Forging a Labor/Management Partnership

      The nature of EPA's relationship with its unions has dramatically changed in the
past year. The unions are a critical link in working toward a more collaborative culture
at EPA. The Agency has implemented a new partnership philosophy, involving the
unions in areas not previously conceived as being within the scope of the  labor-
management  relationship.  The  most  notable  example is the depth of  union
involvement in planning and executing the reorganization of the Office of Enforcement
and  Compliance  Assurance,  which  consolidated  the  Agency's  Headquarter's
environmental enforcement efforts and required reassignment of several hundred staff.
The  unions assisted in  the development and  gathering  of staff evaluations on
supervisory effectiveness. These evaluations were one aspect of the information used
in making managerial assignments in the new enforcement program.

      The Agency and its workers are forming partnership councils at the national and
local levels.   The unions have formed  a Coalition  of EPA Unions to develop and
present to management issues of especially high concern to  EPA workers, and two
unions sit on the  Agency's Senior Leadership Council's Management Advisory
Committee. The unions and management are developing processes for implementing
Executive Order  12871  on  labor/management  partnerships.    One  of the
implementation processes already in place is the Headquarters agreement on including
unions in reinvention activities;  a  copy is provided in Appendix  D.   For  more
information, contact your Labor Relations Advisor.
              WHERE TO BEGIN - Creating an Empowered Organization
      The basis for creating an empowered organization is a culture of trust. Only
when there is a genuine belief that all employees agree on the vision and will work to
fulfill the mission as effectively as they know how, will empowerment truly be a part
of EPA's culture.  Only through taking small steps toward empowerment today,
however, will that culture of trust be able to develop for tomorrow.
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REINVENTING EPA                                          V. Working Collaboratively
                            THINGS TO CONSIDER
       Engender self-responsibility and initiative through less authoritative
       direction and formal process controls such as rigid standard procedures,
       unnecessary reporting, cumbersome policies, and "bean" counting.

       Change management responsibility from directing and controlling to
       coaching and facilitating.

       Foster an environment where employee participation is encouraged,
       employees are working collaboratively, reward mechanisms hold meaning
       for employees and are related to quality performance achieved in the
       context of  shared goals and values.
       Maximize employee involvement in decision-making; share power
       and information.

       Reduce internal layers  of  review  for decisions and documents; create
       accountability, self-responsibility, and trust at the level where the work is
       done.

       Delegate authority, informally and formally, to the lowest possible levels to
       eliminate  unnecessary lines of approval;  examine formal  delegations of
       authority for opportunities to redelegate to lower levels and for easing or
       eliminating limitations on those exercising the authority.

       Demonstrate support for employees as responsibilities are redelegated.

       Provide the tools necessary to acquire the skills, training, and knowledge
       to make sound judgments.

       Invite union representatives early in any process impacting employees.
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REINVENTING EPA                                        V. Working Collaboratively
              WHAT IT is AND WHY IT is iMPORTANT-Teams
  "Organizing by teams . ,, creates a sense of belonging, security and cohesion.
  Peer influence can improve performance. Lateral communication is improved.
  The  quality of, and support for, decisions increases  when more  people are
  involved."

    Michael Rigg, "Vision and Value: Key to Initiating Organizational Change,"
                            Industrial Engineering
      A work team is defined as a small number of people with complementary skills
who are committed to a common purpose, set of performance goals, and approach
for which they hold themselves mutually accountable. The Agency Streamlining plan
lists as one of its goals to make much greater use of cross-program and cross-media
teams, such as placed-based and "common  sense" approaches to environmental
protection. This emphasis on work teams is not unique to EPA--the team approach
has become popular in other government organizations and the private sector as an
important way to operate collaboratively.   Employees  must know how to solve
problems,  make  decisions   or  recommendations  as appropriate, and evaluate
performance as work progresses; and managers must know how  to interact with
teams and to coach  and guide when  needed. Thus a substantial commitment to
training is necessary for teams to be successful.

      Benefits of teams

      •     Working in  teams creates  employee ownership  in  the
            product  and  helps  to  increase  morale,  productivity,
            flexibility, quality, commitment, and customer satisfaction.

      •     Teams  can  help develop workers  who  are empowered,
            accountable, cross-trained,  flexible, and able to deal with
            entire processes.  As teams develop and  work closely
            together, members learn to value the different perspectives
            a diverse work group provides.

      •     Communication  is  improved because people are working
            directly with one another, and the quality and support for
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REINVENTING EPA	     V. Working Collaboratively

            a decision or product increases when more  people are
            involved.

      Risks of teams

      •     Teams, particularly self-directed work teams, should have
            a clear mission, vision, goals, and sufficient training. If this
            does not occur, there is a risk of inefficiencies including
            more time and effort spent on interpersonal issues, "group-
            think", conflict resolution, social loafing, and diffusion of
            responsibilities.  In addition, teams without clear focus or
            sufficient training have a tendency toward  inappropriate
            risk-taking, escalated commitment  to incorrect or irrational
            courses of action, and premature consensus.

      •     It is important for team members to allow group dynamics,
            such as conflict, to surface and be dealt with  candidly in
            the natural  course of team  activities.  Circumventing
            conflict or inappropriate behaviors will lead to inefficiencies,
            splintering of  the group,  and a product that is  not
            representative of the team's combined skills.
Role of Managers

      Work teams depend on managers to obtain resources and other support, act as
a buffer, communicate with the team and the rest of the organization, solve problems
which cannot be addressed at the team level, and ensure that the efforts of individual
teams fit together to move the Agency forward. In the early stages of team-building,
managers  have an even  more direct role in  clarifying the purpose, rationale, and
performance challenge for the team, and where needed, facilitating, coordinating, and
coaching the team.  However, it is important that the team  have  the flexibility to
develop commitment around the purpose, set specific goals, timing, and approach.
Using teams reduces the need to supervise many individuals, and instead enables
management to supervise multiple teams.  The  individuals in self-directed  teams
largely supervise themselves in the sense that they set team product schedules and
measures of success.
Type of Work Teams Can Do

      In the private sector, work teams are used primarily in routine, repetitive types
of operations.  Everyone learns how to operate each piece of equipment or part of the
process so that team members may substitute for one another.  At EPA, we  have a
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REINVENTING EPA	•	V. Working Collaboratively

very technical  business  and  a  highly  educated workforce,  and this  type of
"substitution" is more complex. While each employee may not be able to become an
expert in all areas, they can develop a shared appreciation of what goes into each part
of the process, thus enhancing both their experience and the product.

      Virtually any work that requires more than one person, in terms of either the
mix of skills or level of effort, can be done by a team. The only difference is that the
team is organizing the work and reporting to management as a team rather than as
individuals. Some work, however, requires such close coordination and  consistency
of vision that it can only be  done  by a single individual or a very experienced team.
Other work may not benefit sufficiently from diverse skills and perspectives to justify
the overhead of group activity.

      The type of tasks that teams take on should be discrete enough so that the
team is able to function, but not so independent that the team becomes disconnected
from the Agency goals. The task should be varied enough so that the group can use
the diverse skills the members bring,  yet interdependent enough so that the  team
interacts.  It may be necessary to  broaden or narrow the scope of the team  to find a
workable degree of independence.  While this may seem like a tightrope, in reality
many of the  tasks EPA performs fit easily into these categories.
Teams and Organizational Structure

      Currently, EPA relies heavily on teams to do our work, and working in teams
is almost inevitable as we move toward a new reinvented EPA. There are three basic
ways to look at teams organizationally-temporary, permanent, and matrix.

      •    Temporary teams function for a few days, weeks, months,
           or longer and then are disbanded. This category includes
           ad hoc teams, which are short-term, project-specific teams.
           Examples of temporary teams  include the red border teams
           or legislative teams that tend to do work on specific issues
           but are not part of an  organization's formal  structure.
           Temporary teams can effectively bring the right resources
           to bear on a matter and provide excellent opportunities for
           employee development.

      •    The organization's formal structure may contain permanent,
           team-style elements as replacements for Sections or Units.
           Using  a  team  approach distributes  among  the  team
           members  most of the daily work responsibilities of the
           former chief. Next-level managers are able to assume the
           remaining  oversight  functions  because teams largely
           manage themselves, and managers can oversee a few
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REINVENTING EPA	   V. Working Collaboratively

           teams rather than many individuals.  Caution should  be
           exercised, however, to make sure permanent teams are not
           just renamed structural units but are operating in  the true
           spirit of a collaborative team.  Otherwise, the former first-
           line supervisors, renamed "team leaders," retain all of their
           responsibilities without benefit of their formal  supervisory
           authority.

      •    Team concepts can be applied to an organization's formal
           structure by reorganizing cross-functionally around clients
           or products. This formalizes the collaboration of previously
           segmented parts of the organization.  Alternately, the
           cross-functional approach can be implemented  through
           matrix management, where collaboration is achieved  by
           teams of people from  multiple organizations operating
           across the formal structure.   Cross-organizational team
           membership can be an occasional, part-time involvement
           for employees. In a highly matrixed organization, however,
           it can be the  norm, with the formal organization serving
           primarily  as  a  home   base,  and most, work  being
           accomplished  by teams superimposed on the organization
           chart.  Matrix teams  can be either permanent operating
           units, or convened for temporary, situational efforts.

Team Development

      Newly formed teams go through various stages of development as members get
to know each other, resolve internal problems, and establish goals  and procedures
prior to deciding how to accomplish their mission. There are many theories on team
development, but in general there are four stages that teams go through, and the
team may return to an earlier stage at any time throughout the process. These stages
are:

      •    Orientation - > The team establishes rules, procedures, and
           a plan of action. Decisions are made such as who  is on the
           team, what the team will do,  and what it needs to do.

      •    Internal problem solving ->  Problems are  discussed that
           may  block accomplishment.   Problems  often  develop
           because  of  something  that  was  not  covered in  the
           orientation stage.

      •    Growth and productivity -> All problems are resolved at
           this stage and team members are focused on completing
           the task.  Members experience increased closeness, share
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REINVENTING EPA
                             V. Working Collaboratively
            ideas and approaches, give feedback, and explore better
            ways to accomplish the task.

      •     Evaluation ->  The team has completed the task at this
            stage  and evaluates the  lessons learned  and  provides
            suggestions for improvement for future team projects.

      Literature suggests that successful organizations increase team autonomy from
low to high on a  gradual  basis.   Employees and managers learn to  work more
collaboratively in problem-solving teams and develop skills that can be used in their
daily activities. Problem-solving teams provide opportunities for developing team skills
such as interpersonal communications and team problem-solving.  As these skills are
developed, the team may move from a problem-solving team closer to a self-managing
team.
                            TEAM DEVELOPMENT
      Low Autonomy  <
 Problem-solving Teams
Semi-autonomous Teams
— >   High Autonomy

->   Self-directed Teams
 Teams are given a
 specific problem to
 address within given
 constraints. Often these
 teams reach subject or
 technical limitations.
Teams plan, problem-
solve, and have input
to goals and decisions.

Require changes in:
philosophy, structure,
systems, policies, and
skills.
   Teams run the daily
   business of the unit,
   including determining
   workload and staffing.

   Require less supervision.

   Expands on
   requirements of semi-
   autonomous teams.
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REINVENTING EPA                                         V. Working Collaboratively
             WHERE TO BEGIN ~ Working in Teams
                           THINGS TO CONSIDER
 »    Determine whether the type of work that needs to be accomplished
       is appropriate for a team.  The task can't be overwhelming, but has
       to be  difficult  enough to  engage a  team  and keep  the  work
       challenging and interesting.

 •s-    Determine the type of teams your organization is ready to establish.
       What is the current level of skills,  information, and empowerment?
       To what extent do employees already  work in teams within and
       across the organization?

 **•    Determine what training programs are necessary. Employees may not
       be able to jump right into doing work in teams without training in
       working with a team,  communicating, setting goals and benchmarks,
       and planning their daily activities.

 «*•    Determine who the team members will be.  There are several ways
       to go about this,  from  having a manager appoint the members  to
       more cooperative methods. The trick is to identify the right skills mix
       needed for the team and find people who  have the  interest and
       availability to share fully in the effort.  It may be useful to identify a
       few key members to scope out the  project and identify the additional
       skills and/or people needed to fill out the team.

 «•    Involve stakeholders  in  reinvention teams.  This may mean drawing
       people in from other parts of the Agency, or consulting with people
       from outside the Agency.

 •s*    Establish reward systems to recognize  teamwork that encourages
       collaboration  and discourages competition among team members.
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REINVENTING EPA                                          V. Working Collaboratively
                            THINGS TO CONSIDER
       Establish a clear mission, vision, and specific goals for the team.
       These must be flexible enough for the team to take ownership of
       the project; they are best done with the managers and team
       together in early team development and may progress to being
       done entirely by team members in the later stage, self-directed
       teams.

       Create "cross-boundary partnerships" to increase communications
       among your own divisions and with other organizations (either inside
       or outside the Agency).   In a segmented organization, positive
       changes in one area  may  never reach another, whereas in  an
       "integrated organization," positive changes can be shared or "passed
       along" more easily.  EPA's structure and policies make this difficult
       to do and these "cross-boundary partnerships" will  require much
       work. The Common Sense Initiative is an example of the Agency's
       efforts  to achieve  "cross-boundary  partnerships"  internally  and
       externally.

       Make an upfront  investment in communication planning.  One
       example is the use of electronic forms of information exchange which
       allow ideas to be accessed by any  interested party.  Electronic
       bulletin boards on different subjects can be established so that people
       working on similar  topics in different parts of the Agency can share
       ideas.  Training is necessary to institute  a culture  of improved
       communications, electronically or otherwise.

       Involve  union representatives in  teams  related to  reinvention
       activities.   An  EPA  agreement  requires  union  involvement in
       reinvention teams established at Headquarters (Appendix D). Contact
       your Labor Relations Advisor for more information.
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REINVENTING EPA                                          V. Working Collaboratively
               WHAT  rr  is  AND  WHY  IT is  iMPORTANT-Management
               Behaviors
  "It is easier to use authority to tighten up, shrink, and make an organization more
  cautious than it is to use power to open up, expand and make an organization
  more courageous."

              Peter Block, The Empowered Manager
      Critical to successfully empowering and delegating authority are changes in the
way an organization manages its employees.   Management essentially uses the
capabilities of employees to get work accomplished.  Management decisions should
be molded through consultation with employees; employees provide information that
frames decisions. A sign of a successful manager is a workforce which is operating
at peak productivity.  Managers who focus on removing barriers to productivity and
creativity are using power to its best advantage. This can be accomplished not only
through position, policies, and practices, but must also include an attitude-a state of
mind-that all employees are working toward the same vision, and can be trusted to
act in the best interests of the  organization.

      There  are many different management  styles, ranging  from dictatorial  to
participatory (with many variations on both styles), and many different roles managers
play.  Managers' roles include functioning as  consultants,  advocates, educators,
information resources, trouble shooters, and decision-makers.  Different situations call
for different styles and roles, and each choice comes with certain tradeoffs. Tradeoffs
involve productivity, the speed with which decisions are made, the extent to which
the group contributes, the commitment to a decision, and  the potential  for staff
development. The style of managing also  impacts employees' decisions on whether
to stay/remain in the organization. In a regulatory agency such as EPA, the work of
the agency tends to involve technical and scientific decisions and interpretations.
These frequently are best made by the technicians and scientists who work with the
issues daily.  Managers must be available to ensure employees have the information,
resources, and training they need to make decisions.  To manage effectively, it  is
necessary to prioritize tasks with a view  toward long-term needs. In a reinvented
EPA, two tasks stand out as top priorities:  1)  working collaboratively with all
employees and other stakeholders to develop and articulate a vision, (discussed  in
section II); and 2) creating an environment in which staff can figure out what needs
to be done and can do it well.
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REINVENTING EPA	•	V. Working Collaboratively

      Managers also need to help reconcile employees' personal aspirations with the
realities of the workplace. Studies of private sector companies indicate that eighty
percent of the workforce believe they are among the organization's top performers.
As  the  corresponding expectations for promotion within the organization cannot
possibly be met, managers must learn how to counsel people to clarify values, to
specify  goals, and in certain instances, to deal with disappointment.

      Studies of successful managers have identified several common traits:

      •    A caring, respectful, and responsible attitude;

      •    Flexibility about people and organizational lines;

      •    A participative approach to management;

      •    A willingness to share power;

      •    A clear sense of values; and

      •     A sincere interest in  the well-being  and development of those
            around them.

      In order to manage with a large span of control, you must have a staff you can
trust to  perform well on  their own. It is easier to  push control to, or empower, top
performing employees, but to give all employees greater authority is more difficult.
If you have a clear vision and trust staff to work toward that, and give employees the
tools, training, and authority they need to perform, in the long term the culture of the
organization will evolve into one of increasingly high performance.
              WHERE TO BEGiN-Changing Management Behaviors
      Changing management behavior will not happen overnight, and cannot happen
in a vacuum. As individual managers work to transform their management styles, the
organization as a whole will be affected  and move more toward a reinvented EPA.
Similarly, as other reinvention activities  are implemented, these will influence the
behavior of the managers that they impact.
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REINVENTING EPA                                         V. Working Collaboratively
                           THINGS TO CONSIDER
       Look objectively at your working and management styles; identify
       areas which could be improved, skills which may benefit from training
       courses,  and areas in which you excel.  (Feedback sessions with
       employees is one tool you may decide to use as a means of helping
       you identify your management style and needed changes.)

       Questions for 1st and 2nd line managers to ask include:

       >     Do I foster  an environment where people  are  allowed to
             express their creativity and try out new ideas?

       *     Do I allow for mistakes  and risk-taking?

       *     Am I cooperative, or do I compete with staff and other managers?

       >     Are employees given the opportunity to develop their skills?

       *     By delegating  and/or working  collaboratively, can  I  better
             handle the work and produce products with better results?

       »•     Do I act as a coach and guide rather than as a directed control
             authority?

       »•     Do I perform substantive work or  make decisions that could be
             handled by someone in a more junior position?

       Questions for AAs to ask include:

       »>     How does each segment of the organization and its managers
             respond to the seven questions above?

       *•     How can I help the managers in my organization accept and
             embody change?

       *     How much am I  depending on  Division Directors and  Office
             Directors to perform technical functions rather than managing
             programs?
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REINVENTING EPA
V. Working Collaboratively
                            THINGS TO CONSIDER
       Questions for AAs to ask include (cont.):

       >     Do I  model empowered, collaborative management?

       *•     Do I  allow time for managers to develop and practice
             innovative management strategies with their staff?

       Utilize the abilities and capacities of the workforce; develop
       employees  to their fullest potential to improve staff performance;
       train, build  competence, and enhance motivation through:

             -»     Guiding;

             >-+     Delegating;

             ^     Coaching; and

             -»•     Facilitating.

       Increase  the role of the manager as counselor to increase employee
       confidence, self-esteem, and job fulfillment.

       Identify barriers to change.

       Recognize EPA's cultural expectation that managers be well  versed in all
       the details of their programs.  Strive to redirect that expectation as much
       as possible while continuing to accommodate it as necessary. Be sure to
       provide managers with  the management information needed to assure
       that policies and production are within desired limits.
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REINVENTING EPA                       VI. Organizational Layers and Organizational Design
       VI. Organizational Layers and Organizational Design
      A reinvented EPA has fewer layers between the person doing the work and the
decision-maker, and senior managers have wider spans of control. This is what is
often referred to as a "flat"  organization where:

      •     Getting actions completed requires minimal levels of review;

      •     Employees have direct access to the decision-maker on their
            project;

      •     Managers have more  staff to manage, so by necessity they
            concentrate more on management and less on technical issues;

      •     Teams  may  be used to solve complex issues by utilizing the
            diverse perspectives of individual members to  achieve a quality
            solution; and

      •     Interconnectedness, opportunities for interaction,  and  strong
            working relationships exist throughout.

      The importance of formal organizational structure declines in a reinvented EPA.
Behavioral patterns are more important than structure in determining effectiveness,
and most work is accomplished through myriad informal, interconnecting relationships
that cut across formal organizational lines.  Thus,  while  the structure  of  an
organization is still important, flexible, "boundaryless" groups will be most effective
in meeting future challenges.
JP
WHAT IT is AND WHY IT ts
Layers
iMPORTANT-Organizational

  Good intentions and brilliant proposals wilt be dead-ended, delayed, sabotaged,
  massaged to death, or reversed beyond recognition or  usefulness by the
  overlay ered structures,

                        Tom Peters, Thriving on Chaos
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REINVENTING EPA                       VI. Organizational Layers and Organizational Design

      Flexible, flatter structures enable an organization to better adapt to change and
respond to new opportunities more effectively than ones which are compartmentalized
and rigid.  Flatter ways of organizing encourage information flow among offices and
programs, thereby providing each area with the information  needed to respond to a
changing environment.

      The  1:11 ratio is EPA's numerical goal in response to the Executive Order
mandating  Federal agencies to double the number of staff  for each supervisor.
Focusing on eliminating management positions to  obtain the 1:11 goal does not
guarantee that layers of bureaucracy will be reduced. Reducing the number of Offices
in an Assistant Administratorship, for example, would improve the supervisor to staff
ratio, but not reduce the number of hierarchical layers.  Two aspects important to the
formal structure of an organization are:

      Height is  a  function  of  the  number of levels,  or  layers,  in  the
      organization.

      Breadth is a function of the number of organizations at each level of the
      organization  (e.g.,   the   number  of  Offices  under  an  Assistant
      Administrator, number of Divisions under an Office, etc.), or the "span
      of control."

      The  diagram below  illustrates both a "tall" and a "flat"  organization with the
same 1:11  supervisory ratio. The example on top shows how bureaucratic layers can
be eliminated to reach the 1:11  ratio.  Although it too meets the mandatory  1:11
ratio,  the  example  on the  bottom  shows  a  very  hierarchical and potentially
bureaucratic organization that places a burden on first-line supervisors and does not
reflect Agency goals to reduce layers and create a more flexible, less bureaucratic
structure.
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REINVENTING EPA
VI. Organizational Layers and Organizational Design
             COMPARISON  OF FLAT  AND TALL STRUCTURES
                      Each Model Has 764 Employees
                    Each Model  Has a  1:11 Supervisory  Ratio
    FLAT STRUCTURE
      First Line Supervisors =  53

      First Line Span of Control =1:13
                                           T
                                                          T
    TALL STRUCTURE
       First Line Supervisors = 32

       First Line Span of Control = 1 • 22
      The most important factor necessary to make any reinvention tool work is
behavioral change.  In organizations with wider spans of control, it is impossible for
managers to remain technical experts.   Instead, managers must spend their time
managing up, down, and across the organization.  This requires a cultural change for
EPA, as we have traditionally promoted staff into managerial ranks based on technical
competency, and have expected managers to know the details of everything.

      Staff will have to adjust as well.  No longer will a manager be as available to
assist in the technical aspects of the job. Instead,  junior staff will have to look to
more experienced employees for assistance and guidance. This will require increased
training and more detailed orientation programs. A more entrepreneurial culture must
evolve, where staff members generate  ideas for new projects or new methods of
operating, and have the ability to test out those ideas.  Accountability will  be
distributed as well-with individual employees "owning" their projects  and being
responsible for their successful conclusion. This does not mean that employees won't
be permitted to  make mistakes; on the contrary, for  an  "entrepreneurial  spirit" to
flourish, a climate which encourages risk is essential. If a project fails, employees will
be encouraged to analyze why it failed, and if warranted, improve the process, fix the
mistake, and try again.  Managers must encourage staff to try out new  ideas to
achieve their vision and goals, and see  that they are given the training and tools
necessary to carry them out.
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REINVENTING EPA	VI. Organizational Layers and Organizational Design

Reducing Layers is not Appropriate for Everyone

      While fewer hierarchical layers may help you to achieve organizational goals,
reducing layers is not a goal in and  of itself--it is a tool, and like all tools, is not
appropriate in every situation. For instance, the nature of the task makes a difference;
more complex, technical, and volatile  jobs may need the support and teaching that a
narrower span of control and greater supervisory involvement can provide. Likewise,
more routine or process-oriented jobs might work well with even larger spans of
control.

      Skill also plays a factor in determining the appropriate number of layers for an
organization.  Experienced employees with strong skills are likely to require less
individual guidance than an organization with a high turnover rate  where employees
are often learning skills on the job.  The homogeneity of skills has a role as well. A
larger span of control is likely to be more practical in an organization in which all or
most employees perform the same type of work, than in an organization where many
different professions and skills interact.
Re-engineering Core Processes to Create Successful Organizations

      Reducing  layers also does not guarantee a successful organization.  Other
factors are necessary to create the cultural change that is the underpinning  of a
reinvented EPA.  Underlying management deficiencies such as "micro" managers,
"technician" managers, or lack of a vision, communication, or priorities will not be
solved merely by restructuring. In this era of increasing legislative mandates and not
increasing  resources,  making structural  changes to  reduce layers  without an
examination of our core processes and efforts to make them more efficient and
effective has the potential to increase each person's workload and result in frustration.

      EPA needs to look at how work gets accomplished, and analyze these  core
processes for re-engineering opportunities. "We will be examining our work processes
to eliminate unnecessary layers of review and oversight and will assure each employee
plays a vital role in our organization," as Administrator Browner said in a recent all-
employee memo. Re-engineering may not mean merely improving an existing process,
but involves examining each process to determine if it is necessary, why, and what
is the best way to go about it.  This is a necessary piece of the  entire reinvention
effort, as it goes hand in hand with the cultural and structural changes envisioned in
the reinvented EPA.

      Everyone contributes to the Agency's culture and how its core processes are
conducted to achieve mission objectives. However, senior managers have a particular
responsibility  in  this; what  they  do has  a substantial  impact  on  workplace
management and satisfaction and the environmental results generated. Every aspect
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REINVENTING EPA                       VI. Organizational Layers and Organizational Design

of senior management performance, every conversation held, and every action taken
demonstrates the values senior managers believe are important to the organization and
its mission.  Re-engineering the way we  carry out our core processes, both the
administrative support and the environmental work of the Agency, cannot exist
without senior managers' commitment  and  involved leadership in open, inclusive
endeavors.

      Re-engineering core processes is one of the most natural fits for broad-based
employee  involvement.  It  provides an excellent opportunity for  creating  team
experience and expands the skills and technical knowledge of others through thorough
examination of processes in collaborative forums.  The intuitive counterpart of these
efforts is creativity and innovation in designing new and different ways of approaching
the Agency's work.

      Rather than beginning a dozen or more simultaneous initiatives to analyze and
change core processes, it may be more effective to focus on three or four.   It is
important to keep your vision and values in mind:  start with the core processes that
you care about most deeply and  where you  can realize significant results.  Re-
engineering the Agency's core processes should be viewed as a  sustained evolution
of change.  Increments of change that yield positive results are often more effective
than holding out for "getting it right." Re-engineering is about exploring, analyzing,
learning, testing, making mistakes, and sustaining efforts to achieve your goals and
objectives.
Communicating in a Flat Organization

      In a hierarchical organization, information is usually passed from layer to layer,
increasing the risk of distortion before it reaches  the decision-maker.  In a flat
organization, the person doing the work meets face-to-face with the final or close-to-
final decision-maker, allowing a clearer, faster, more efficient transfer of information.

      Reducing management layers can facilitate faster and improved decision-making
by improving the quality of information received. With fewer layers of management,
decision-makers are closer to the employees and customers, enabling them to respond
more effectively  and adapt.

      In flat organizations, information must flow freely up, down, and across the
organization. Interaction  with peers increases as they work across the organization
in functional linkages. This facilitates a more collaborative culture, increases diversity
in  affecting  outcomes, and enhances  the  capacity of the  workforce to develop
additional skills.  In addition, this free-flowing exchange tends to increase innovation.
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REINVENTING EPA	         VI. Organizational Layers and Organizational Design
              WHERE TO BEGiN-Reducing Layers
                            THINGS TO CONSIDER
 To begin thinking about how or where to reduce unnecessary supervisory layers
 in your organization, ask the following questions:

 •»     Is top management out of touch with the people performing the work
        and the customers?

 «*     Does your organization adapt slowly to change?

 •*•     Do managers involve themselves too much in daily activities?

 «•     Do one or more layers of the review process fail to add value to the end
        product?

 •»     Are multiple signatures required to accomplish tasks?  If so,  is there a
        strong legal, regulatory or policy reason for this?

 «•     Is  your review process slow to respond to the needs of the organization
        and its stakeholders?

 •a-     Do managers act as "pass through" and not as decision-makers?

 •*     Are operations disconnected from the Agency mission or service delivery?

 «*     Do staff lack authority to provide responsive service to stakeholders?

 «s-     Do managers and their deputies and assistants duplicate responsibilities?

 *y     Do  Headquarters,  Regional,  and/or field  offices  perform the  same
        functions?  Are functions duplicated within or across offices?

 *?     Do employees or other stakeholders believe service is bottlenecked?
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REINVENTING EPA                       VI. Organizational Layers and Organizational Design
                           THINGS TO CONSIDER
 «•    Are political appointees stacked within the hierarchy?

 «•    Do high-level managers and policy-makers micro-manage operations?

       If your organization answered "no" to these questions, you probably
 already have an appropriate number of management levels, and may want to
 look at using other tools to achieve your goals. If, however, your organization
 answered "yes" to many of these questions, that signals a potential opportunity
 for reducing layers and improving organizational performance.
               WHAT  IT  is AND  WHY  IT  is  iMPORTANT-Redesigning
               Organizational  Structures
  "The existing organizational structure of the federal government is rooted earlier
  in this century, a time when massive, multilayered bureaucracies were seen as
  the most  effective  and  efficient  approach  to managing large,  complex
  organizations. . . . We have but to took around us to see that times have
  changed."

      Report Accompanying the Report of the National Performance Review
                    Transforming Organizational Structures
      Once an organization has determined why change is needed-through defining
its  vision and values,  establishing organizational and operational baselines, and
determining what is missing-reorganization may be an appropriate tool to use to begin
implementing this change.  This section is intended to provide background and the
basic principles of  organizational  design  on:   How  Reorganizing  Can  Help.
Organizational Factors  to Keep  in Mind. Designing  Organizational  Potions, and
Checklist for Implementing and Evaluating New Structures, and Common Pitfalls.
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REINVENTING EPA	VI. Organizational Layers and Organizational Design

How Reorganizing Can Help

      An organization's structure provides a framework for achieving its vision and
goals.   Optimum design of  your organizational structure  should  enable your
organization to effectively meet your vision in the most effective and responsive way.
Restructuring  enables  you  to  realign functions (e.g., combine complementary
functions/activities, eliminate duplicative and/or unnecessary functions/activities,
and/or create new functions/activities, etc.) to:

      •     Facilitate more efficient operational processes;

      •     Improve communication paths;

      •     Become more flexible in a changing environment;

      •     Become more responsive to customer needs;

      •     Achieve the most appropriate number of organizational layers; and

      •     Utilize resources (people and dollars) in the most efficient manner.

      However, restructuring  is not  an end  in  itself.   Without looking  at the
organization as a total system for reinvention—examining management practices,
cultural  changes, communication, and operational processes for  improvements, --
reorganization  alone will  only  provide  marginal  improvements at best.   The
arrangement of the boxes is not as important to excellence as the  organization's
capacity for solving problems through collaboration, sound management and a culture
that places high value on people and quality.


Organizational Factors to Keep in Mind

      Certain factors will come into play regardless of the type of reorganization you
undertake.  These factors include the  degree to which functions  are centralized  or
decentralized, and your ability to redeploy employees to direct customer service and
reach the Agency's 1:11 supervisorstaff goal.

Centralization versus Decentralization

      One factor you will have to consider if you decide to reorganize is the degree
of centralization/decentralization for each function. Complete centralization is when
all decisions are  made by one  person in the organization.   The extreme  form  of
decentralization would be an organization in which each individual shares equally in
decision-making.  Most organizations are somewhere in between. When weighing the
degree of centralization, compare  the amount of time  and money used  sending
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REINVENTING EPA
VI. Organizational Layers and Organizational Design
information to a central place,  against the loss  of control and coordination when
decisions are made by employees at lower or geographically separate parts of the
organization.  An example of the balance organizations play between centralization
and  decentralization is the extent to which EPA's regional offices have authority.
Decentralization gives individual decision-making units in the regions the opportunity
to meet local needs, however, there  are  costs  associated with  coordinating the
activities of the regions to ensure national policies are applied consistently. The table
below describes benefits of centralized and decentralized functions:
  Centralization
 Decentralization
  > Minimizes duplication of functions.  Assures
  uniformity and consistency of decisions and
  actions throughout the organization. This has
  important legal ramifications.

  » Requires the decision-making unit to have the
  information necessary to make the decision
  (information must come from lower levels).

  > Creates economies of scale, or cost savings
  from full utilization of a central facility, supply,
  or expertise.
 > Increases employee innovation and creativity,
 encourages autonomy and responsible decision-
 making.

 > Increases decision-making close to the source
 of the issue by people with direct knowledge of
 the issues involved.

 » Creates opportunities for a wider span of
 skills, training, growth, teamwork, and
 management experience throughout the
 organization, providing a dispersed base of
 expertise.

 > Reduces time that centralized functional units
 apply to routine operational issues, leaves more
 time to concentrate on goals and strategic
 direction while decentralized functional units
 concentrate on operational activities.
Reaching the 1:11 Supervisor/Employee Ratio, and Reducing Control and Oversight

      One recommendation of the National Performance Review (NPR) was to reduce
the costs and positions associated with management control structures by half over
a five year period.  This will decrease government control and oversight, increase
customer focus, enhance employee empowerment, encourage the use of teams,
simplify control structures, and strengthen the use of information and communications
technology.  The Office of Management and Budget (OMB) has issued guidance on
how to accomplish this,  and has  established a goal of redeploying 50% of current
supervisors, administrative, and  "headquarters" personnel to  positions  directly
impacting customer service by  1999.  OMB has released functional definitions  for
these categories,  which are contained in this document as Appendix C.   The OMB
definition of "headquarters" employees is not  based on  geographic location, but
instead includes all employees performing oversight, evaluation control and program
management functions, regardless of location.
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REINVENTING EPA	VI. Organizational Layers and Organizational Design

      EPA's preliminary interpretation of the definition of "headquarters" employees
excludes the following core, front-line functions:

      •     Developing and implementing environmental regulations;

      •     Pursuing inspection and enforcement actions;

      •     Conducting research; and

      •     Collecting and disseminating environmental/scientific data.

This is a preliminary list; other functions may be included at a later point.

      Part of this effort involves the supervisor to staff ratio. President Clinton issued
an Executive Order requiring all federal government agencies to double the number of
staff per supervisor.  EPA's current ratio is 1 supervisor per 5.5 staff, which means
that the Agency must reach  a 1:11 ratio of  supervisors to staff.  Administrator
Browner is committed to reaching this goal by 1996.  She has tasked each AAship
and  RAship with attaining the  1:11 ratio, to enable the Agency to meet this goal.

      If you find that restructuring is necessary to reach  1:11, the AA/RAship as a
whole must decide how to proceed. If it is decided that the AA/RAship will not
reorganize as  a whole, all organizational entities within each AA/RAship need to
coordinate their respective reorganizations to ensure the entire organization reaches
the  1:11 goal. Unless the AA/RAship determines how the entire organization can
concurrently achieve  the  ratio and/or each  organizational  entity is required  to
individually reach the goal, the lower organizational levels of the AAship may need to
have more staff per supervisor. If lower organizational levels must compensate for
smaller  supervisor/staff  ratios in  immediate  offices,  staff  offices, or  other
organizational units in the AA/RAship, their ratio  will be  pushed higher, in order to
achieve the overall 1:11 goal.  Keeping this in mind, it  would be helpful for lower level
organizational units to know the ratio that will likely be achieved by Immediate Offices
and Staff Offices at the AA and OD  levels, before they reorganize.

The ratio is calculated as:
                               #  of supervisors
                       Total workforce - # of supervisors

      The total workforce only includes EPA employees. AARPs, contractors,
      and grantees are not included, whereas  "Stay-in-Schools" are.

      If you know the number of  total employees  in your organization, you can
determine the number of supervisors this workforce can support in a 1:11 organization
by the following formula:

                              Total workforce = Number of supervisors
                                   12
                                      50

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REINVENTING EPA                       VI. Organizational Layers and Organizational Design
      Supervisors are defined as any employee who has management or supervisory
responsibilities for three or more employees and officially holds the title of supervisor
or manager.  This does not apply to project managers, who may be considered a
supervisor but are not officially designated as a supervisor or manager and do hot
have supervisory authorities. Supervisory and management authorities include: hiring
or firing; disciplinary actions; and signature authority, such as for leave,  timecards,
performance appraisals and awards.

      Supervisors in all immediate offices, staff offices, divisions, branches, sections
and units are to be counted.  Individuals who hold titles such as Associate Deputy
Assistant Administrators, Special Assistants, and Team Leaders often are defined as
non-supervisors, if their responsibilities do not include performance of the authorities
outlined above. It should be clear in their position descriptions and conduct of day-to-
day activities that these individuals do not perform supervisory functions.
Placement of Functions/Activities

      Factors to think about when considering where to place functions include:

      »    To the extent that close coordination is critical, activities
            should be assigned to the same organization;

      »    For  placement  of  miscellaneous  functions,  a   good
            possibility is the organization that most utilizes its services;

      «*    An activity that acts as a control on another activity must
            be separate from it;

      »    An  activity that  might otherwise be overlooked can be
            given emphasis by giving it its own organization (separating
            important but easily overshadowed ancillary activities from
            principal operations helps to assure they get done);

      «*    Motivation can be increased through reducing layers and
            providing opportunities for recognition;

      •*•    Organizations have points of view that develop from the
            type of work they do.  Inserting an organizational element
            that is inconsistent is usually unsuccessful, for example,
            mixing quick turn-around and long-term activities;
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REINVENTING EPA	VI. Organizational Layers and Organizational Design

      «•    Organizational units should be clearly enough defined that
            everyone can easily identify which is responsible for  any
            given activity (otherwise valuable energy is consumed by
            turf  battles and  assignment of work, and customers
            dependent on services or products from the organization
            become frustrated); and

      «•    The structure should be free of gaps and overlaps.
              WHERE TO BEGiN--Designing  Organizational  Options
      Redesigning is a complicated and time-consuming process.  As with every
reinvention and change effort, the redesign process should be as inclusive as possible,
including customers, all levels of employees, unions, and other stakeholders. It should
establish clear communication and feedback mechanisms; input, evaluation, and
feedback should be solicited from everyone affected throughout the process. The
broader the input, participation, and feedback, the better the opportunity to create a
design that results in greater understanding and  commitment to the  proposed
organization.
Identification of Work

      By the time your organization has  decided  to reorganize, you would have
already taken a comprehensive look at what your organization does and what it should
be doing.  However, when you are at the stage of actually designing organizational
options, it is helpful to revisit the baselines your organization developed, and list the
work that the organization performs and the major processes through which this work
is  carried out.   This information can  then be considered in different structural
groupings.
Establish  Organizational Considerations/Criteria

      Each organization needs to determine its own specific considerations, criteria,
and  needs that they want  a restructured organization to meet.   Organizational
considerations should be kept in mind while developing options, and are useful for
qualitatively evaluating these options;  they are rarely amenable to quantitative
evaluations. Each organization will have different considerations based on its need
                                     52

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REINVENTING EPA                       VI. Organizational Layers and Organizational Design

for change and the  vision of what that change will bring.   Examples of typical
considerations are:

      How will the design-

      is"    Address problems  inherent  in the  current  structure  (some
            problems can be addressed through  organizational structures,
            some cannot);

      «•    Address the organization's vision, mission, values, and goals;

      »    Meet customer needs;

      «•    Maximize employee empowerment and accountability;

      «•    Facilitate   cooperation,  coordination,   communication,   and
            teamwork within the organization;

      «•    Facilitate delegation of authorities to the lowest appropriate levels;

      ««•    Achieve the flattest,  most appropriate levels of  review and
            signature;

      «s-    Enable the organization to react in a changing environment;

      cr    Achieve a 1:11 supervisor to staff  ratio; and

      «•    Achieve a reduction and redeployment in administrative and
            "headquarters" positions as discussed in the NPR?


Creating Organizational Options

      Once you've  established organizational  baselines  and  determined  the
considerations and criteria you want  the new organizational structure to address, you
are ready to start creating organizational options. It is very important at this stage to
look broadly at your organization and its major areas of responsibility: designing
structures should proceed from the  macro to the micro.  The process should begin
with determining macro organizing principles such as broad categories of groupings.
These principles will be shaped and determined by the organization's functions, goals,
and values.  Application of these principles should then be repeated as you move to
lower levels of the organization.
                                     53

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REINVENTING EPA
                             VI. Organizational Layers and Organizational Design
       When creating and comparing the organizational design options, it is critical to
get input from the stakeholders. Looking back at the criteria can help you balance the
costs and benefits of each option or combination of options.

       Your first task will be to look at how best  to departmentalize, or group, your
work and responsibilities into macro organizational units.  Generally, there are four
major  ways to group work,  by: product, function,  place, and customer.   The table
below provides information on these major groupings.
  Grouping
    Definition
            Attributes
   EPA Example
  Product
Group by output
such as a product
or service.
+  Promotes coordination of
functions on products/services.
+  Uses & encourages specialized
product/service knowledge.
+  Focuses attention on
product/service.
+  Enhances employee identification
with mission.
+  Accountability for all facets
surrounding product.
+  Promotes strong customer focus.
+  Easier to control deadlines
because one person sets priorities.
- Multiple functions grouped
together.
- Necessity for duplication of
functions across Agency, as similar
functions go into different products.
OSWER's Policy
and Standards
Division (product-
policies and
standards for
underground
storage tanks)

OAR's Emission
Standards Division
(product- air
emission standards)
  Function
Grouping similar
work activities.
 + Maximizes the economies from
functional specialization (lawyers,
accountants, etc.).
 + Reduces duplication of personnel
and equipment.
 + Highlights critical skills.
 + Allows pooling of infrequently
used skills (i.e., statisticians).
 + /- Employees are part of a
homogenous group.
- Overspecialization can lead to a
narrow view point.
OGC (function-
legal analysis)

ORD Labs
(function-research)

National Data
Processing Division
(function-data
processing)
                                           54

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REINVENTING EPA
                            VI. Organizational Layers and Organizational Design
  Grouping
    Definition
           Attributes
   EPA Example
  Place
By the location
where the work is
performed or the
area to be served.
+  Can apply an intimate knowledge
of  local conditions of a specific
nature.
+  Provides sound basis for
decentralization.
- Can increase cost by duplicating
facilities and overhead.
- Leads to inconsistencies.
- May produce competitiveness, thus
limiting the amount of cooperation
among units.
Gulf of Mexico and
Great Lakes
Program Offices,
OARM in Cincinnati
and RTP
  Customer
By customer or
other stakeholder
or by the
characteristics of
stakeholders.
+  Build around stakeholder;
necessitates deep knowledge of
stakeholder.
+ Can provide for coordination of all
activities affecting stakeholder.
+ Assures attention to stakeholder
problems.
+ Strong stakeholder focus -
enables quick reaction to changing
stakeholder needs.
- Can increase cost by duplicating
activities and overhead.
- Can create pressure groups on
behalf of categories of stakeholders.
OHRM's servicing
teams, OSWER's
Federal Facilities
Remediation and
Reuse Office,
Office of Small and
Disadvantaged
Business Utilization
      The current trend is to move away from function-based organizations.  Product,
customer, and place organizations focus more on the needs of stakeholders, and have
the potential for more collaborative, innovative, and flexible operation.   It is  not
always easy to distinguish product and  function structures. Product structures have
all the  skills needed to produce an output in  one  organization.   There  is often
duplication in organizations structured this way.  Functional structures are organized
by type of work, and may contribute pieces to many different outputs.  Often function
organizations look at other parts of the organization as "clients."

    Most organizations, including EPA, combine several of these major groupings from
layer to layer and within layers.  For example, regional offices are organized first by
place (region), then by product (air, water, etc.) and function (Environmental Services
Division, ESD). No grouping(s) create the "perfect" structure: the final design should
be based on the best configuration to achieve the organization's vision, with a balance
of the advantages, disadvantages and other determinants, such as available resources.
                                         55

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REINVENTING EPA	VI. Organizational Layers and Organizational Design

Choosing Among Organizational Design Options

      Once you have determined where you are, your vision of where you want to
be, and what the organizational options are for getting there, you are faced with
choosing an option. There are no easy formulas for making this decision, but there
are a few guidelines which may be helpful.

      «*    Involve   employees,   customers,   unions   and   other
            stakeholders in this decision.  All affected parties should
            have a chance to review the options and  discuss the
            impacts they believe would result from each option. Only
            through this input can  each option  be fully  understood.
            This information  will improve the  quality  of the ultimate
            decision.

      *s-    Look at the criteria you developed earlier  in the process.
            Check  to  see that  the options  meet the  criteria your
            organization established.

      «•    Look  at  the  vision your organization developed, and
            determine whether each option would move  you toward
            that vision.

      «•    Evaluate the options for the amount of disruption they will
            cause and for how long this disruption can be expected to
            last.  Any change causes disruption and associated costs,
            such as decreased productivity.  It often takes twelve to
            eighteen  months  to make a  complete transition.  It  is
            important to find ways to maximize employee morale and
            productivity during this time.  This does not mean that the
            least disruptive option is always the most desirable; it is
            just one factor among many to consider and weigh.

      «•    Look at the supervisor to staff ratio and the number of
            layers of supervision required by each option.

      »    Look at what the  management system and accountability
            chain would look like under each option.
                  V

      er    Think about how  delegated authority could be effectively
            managed/tracked under each option.

      •s-    Look at the flow of communication on decisions, products,
            and services as well as on the work environment.
                                     56

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REINVENTING EPA                       VI. Organizational Layers and Organizational Design

      «•    Ask  what  economies  of scale  would be realized  in
           organizing each way.

      *?    Examine whether functions are duplicated within or outside
           the organization.

      is-    Look at the skill mix needed to accomplish the mission of
           each substructure in the options, and ask how this differs
           from the existing skill mix.

      *3f    Examine each option for developmental opportunities for
           employees.

Remember:  it is  not possible to design an organizational structure that optimizes
everything! There are always tradeoffs. The objective is to organize around the most
important or frequent considerations and plan to mitigate the negatives.
Checklist for Implementing and Evaluating New Structures,
and Common Pitfalls

Implementation

      Once an organizational design has been chosen, there are several things to think
about and plan for, including:

      •     Assignment of employees to jobs within the new structure;*

      •     Disruption;

      •     Employee feelings of instability and insecurity; resistance;

      •     Training and developmental needs;

      •     Reorganization   paperwork   (e.g.,    functional   statements,
            organization charts, staffing patterns, position descriptions and
            performance agreements);

      •     Budget allocation and financial system  changes (PEs, allowance
            holders, etc.);

      •     Telecommunications, computer and LAN needs and changes;

      •     Space and equipment needs and transfers;
                                     57

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REINVENTING EPA	VI. Organizational Layers and Organizational Design

      •     Directive  changes  (e.g., delegation  of authorities,  guidance,
            policies); and

      •     Approval process and union review.

            * AA/RAs should use reorganizations as opportunities to enhance workforce
            diversity in management, especially in any new management positions created
            by the reorganization.

Evaluation

      Once the new organizational design is firmly established and operating, you will
want to evaluate it to determine whether it has met your needs, or whether additional
changes are necessary, either due to evolving organizational needs or to fine-tuning
your structure to meet previously identified needs.  As always, be sure to involve
employees, customers, unions, and other stakeholders.  Ask questions such as:

      +     How well is the organization progressing toward the vision?

      +     Are the stated values of the organization being incorporated into
            the day- to-day work and decision-making?

      »>     What  are the customer  and  stakeholder  responses  to  the
            effectiveness of the new organization?

      »•     Has  the  organization  empowered  the employees and  built-in
            accountability to the desired level?

      >     What is the level of employee satisfaction and productivity?

      >     Does this structure enable the organization to respond effectively
            to changes in the organization?

      *•     During this process of change,  are there historical patterns of
            resistance or dysfunction, and has the resistance been reduced?

      +     Has the 1:11 supervisory ratio been achieved, and if so, how is it
            working?

Common Pitfalls

      Restructuring an organization is a complex and lengthy undertaking with much
at stake.  Following is a list of common mistakes made during reorganizations which
make the  process more difficult and the result less effective:

      •     Too  little or inadequate communication at all levels;
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REINVENTING EPA                       VI. Organizational Layers and Organizational Design

      •     Lack of timely involvement with union representatives; •

      •     Organizing around "personalities," and losing sight of the
            function and mission objectives;

      •     Forcing too much into too short a timeframe;

      •     Not clarifying roles of those involved in the process and ,
            how decisions will be made;

      •     Creating a perception of pre-selection; and

      •     Not enough attention to  employee issues such as: when
            will the change take place, what will my job be, where will
            I sit, who is my boss, will I keep my grade, and will I have
            career opportunities in the new organization.
                                     59

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REINVENTING EPA
              VII. bnptementrig Change
                       VII.  Implementing  Change
      The five major topics covered in this guidance (vision and values, a customer-
focused organization, diversity,  a  collaborative  working  environment, and the
appropriate number of organizational layers) are  important characteristics of the
reinvented EPA. However, knowing and understanding these is just the beginning-the
biggest challenge is translating these ideas into organizational  and cultural change.
To facilitate cultural change, whatever process your organization decides upon should
include mechanisms  for employee, customer,  and  other  stakeholder  input and
feedback.  As Administrator Browner stated,  "each organization [will] have an open,
participatory process for developing and implementing reinvention plans." There is no
one correct way to implement any reform, but the process described here is a logical
way to begin thinking about it.
                                  where are  we?
                                   Culture and Infrastructure
                                   Work of O-ganlzatlon
                                   Stakeholders
                 Eva Iuate
               Set aucceaa meeaurae
               Involve Stakeholdere
               Bevlae vlelon If
                    structure chance
Where are we  going?
   Vlelon and Values
   culture cnanges
    SupervlBor/Stoff ratio
               Implement
             Suetnlned attention to
             Dedicate resources
             Allow sufficient tl
             O~oate cornnrtmant to change
 What  Is missing?
    EnpowanMnt.
    Skill OTBB deficiencies
    Diversity
    Brood-baaed Involvement
                             How do  we  fill  the gap?
                                 Working In Team
                                 Reorc*ntzatlon
                                        chance
                                 Stair training
                                        61

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REINVENTING EPA	     VII. Inpkxnenting Chaige

1)    First You Need to Know Where You Are

      Look at the  organization and  determine whether there is a clear vision and
values and if they are widely held, understood, and usable.  Determine to what extent
the organization is focused on customers, and how well diversity is utilized and
valued.   Look honestly at the extent to which employees are involved in making
decisions and at how collaborative work processes are.  Evaluate the organization's
functions and positions, and determine which fall into the category of Headquarters
administrative or supervisory (see definition, Appendix C).  The questions contained
throughout this guidance are a good place to start in determining these baselines.

      Determining organizational baselines requires that you look at your work as well
as your culture. To  do this,  define existing work, analyze current mandates, and
examine existing working and customer relationships internally and externally. Study
the workforce characteristics, current skill mix, and count the available resources such
as FTEs, money, and equipment.  Identify the functions, programs, or activities that
should be de-emphasized or eliminated.

      Throughout the process, it is important to provide communication and feedback
to  interested  and  involved employees,  customers,  and  other  stakeholders.
Communication should take place on a regular and timely basis, utilizing mechanisms
such as all-hands meetings, EMAIL, memos, and staff-to-staff exchanges to update,
inform,  and obtain feedback from all stakeholders.
2)    Next, Determine Where You Want to Be

      This involves creating a vision for the organization. This vision should paint a
picture of the organizational culture of a reinvented EPA at your organizational level,
and  should  include  important  cultural  considerations such  as customer focus,
employee involvement, collaborative working relationships, and valuing diversity. To
have value, the vision should be a collaborative effort. Section II on Vision and Values
provides information on how to  think about developing a vision.

      In performing all steps, but particularly this one, you should be as inclusive as
possible.  Involve all stakeholders, including customers and a representation of all
affected employees (or if feasible, include all employees). These efforts will result in
a better outcome, more commitment to the outcome,  and  a  more challenged,
motivated, and efficient workforce.
3)    Determine What is Missing

      Compare where you are with where you want to be.  In what areas are there
disconnects? What skill areas are lacking in order to. enable your organization to reach
its vision?  By identifying what gaps exist you can see where the organization has an
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REINVENTING EPA	VII. implementing Change

opportunity to improve.  By determining what areas you need to focus on and how
far away from your goal you currently are, you will be able to develop solutions.
4)    Determine How to Fill the Gap

      View  this effort as an opportunity  to  develop  a totally  new and better
organization, not just a reconfiguration or combination of existing activities. Look at
new ways to perform all aspects of your work, including functions, employee skills,
and communication.  Different solutions will be appropriate depending on what is
needed.  This guidance discusses some potential solutions.  For instance, if the gap
lies in valuing diversity, Chapter IV discusses ideas for improving this aspect of the
organization.  If the gap involves employee behaviors, the  section on  working
collaboratively offers ideas on how to foster this type of culture. In some instances,
the gap will suggest a structural solution. Some of the reasons the  organization may
benefit from a reorganization are discussed in Chapter VI.
5)    Implement the Solution

      Once you have determined the best way to move from your current to your
desired  state, you must implement the solution(s).  Again, depending upon the
opportunity you are concentrating on, the appropriate section of this guidance should
provide  you  with  a  place to begin.  Be sure to  recognize the importance and
complexity of implementing  solutions, and dedicate the necessary resources and
attention to  this  step.   Also, most implementation  takes  time and will  require
sustained attention and commitment to achieve desired changes.
6)    Evaluate the Organization's Progress

      Once the desired change has had some time to become operational, you should
evaluate the impact it has on the organization.  Compare it against your baseline and
vision, and  include  extensive  contact with  employees, customers and  other
stakeholders of your organization's services and products to determine if needs are
being met in the most effective way. This step involves going back to the beginning
of the process; looking at where you are now and where you want to be, and revising
your vision if necessary.

      Some measures of progress which may be used to help evaluate the change
are:

      •     Speedier  and better services  to  be  more responsive to
            Agency customers;
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REINVENTING EPA	      VII. Jnylementing Change

      •    More positive commentary from Congress and the media
           about EPA's management practices,  and indications of
           greater trust in the Agency's management of its programs
           and resources;

      •    Increased  interactions  among  EPA  staff,  unions and
           stakeholders and greater reliance on their feedback in
           Agency planning and decision-making activities; and

      •    Increased representation of culturally diverse employees in
           the Agency, especially in management positions.

      The reinvented EPA will be a fluid, evolving organization. It is not a question
of reaching a  numerical goal, such as a 1:11 supervisor to staff ratio, but rather a
matter of creating a new culture. This will require the ability to constantly adapt to
changes and evaluate where the organization stands.  To be successful, the Agency
must create a culture in which people are comfortable with change.
The Human Side of Change

      One of the most difficult parts of any reinvention activity is in managing the
human aspects of change.  As your organization begins its reinvention activities,
employee stress levels will increase as a reaction to change and uncertainty. It is
important for managers  to develop skills  in helping  their employees to deal with
change. The  natural  reaction to change must be acknowledged,  understood, and
addressed if the reinvention activities are to be successful.
Common Reactions to Change

      Each employee will react differently to change. However, some generalizations
can be made.  When people find themselves in a changing environment, they often
experience a range of different  emotions, both  positive and negative.  Positive
emotions  include excitement, anticipation, energy, and acceptance.   Negative
emotions include anger, nervousness, apathy, and resignation.  To prevent these
negative emotions from harming  the  organizations and to address anxieties about
change, it is important to understand the sources of these anxieties, and the stages
through which anxieties are experienced.  Below are seven common  reactions to
change:

      •     Employees feel uncomfortable/anxious about change;
                                     64

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REINVENTING EPA
VII. Implementing Change
      •    Employees first think about what they may have to lose or give up
           in times of change;

      •    Employees generally feel alone when going through change;

      •    Employees can generally only handle a limited amount of change
           at one time;

      •    Employees are at different levels of readiness for a given change,
           as a result, they need different levels of assistance;

      •    Employees are concerned that they don't have enough resources
           to help them deal with the change; and

      •    Employees commonly  revert back to  the  old  way  of  doing
           business.

      The seven common reactions to change discussed above appear in four phases:

      1.    Denial, characterized by withdrawal and focus on past rather
           than future;

      2.    Resistance, characterized by anger, blame, anxiety,
           depression, and apathy;

      3.    Exploration, characterized by concern for detail and
           confusion; and

      4.    Consent/Commitment, characterized by cooperation,
           focus, and anticipation.
             WHERE TO BEGiN-Bringing About Productive Change
      To bring about productive change, all employees must feel connected and
involved. The reasons behind the change must be effectively communicated to all
employees. It is important to establish good lines of communication and solicit
input from all levels of employees. A rapport and trust should be established at the
very beginning of the process.  Below are ideas that can help you address different
phases of change.
                                    65

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REINVENTING EPA                                            VII. bnplementng Change
                           THINGS TO CONSIDER
       Managing the denial and resistance phases:

       «•    Recognize that change makes everybody feel stressed and
             awkward, and allow people to share their feelings together;

       »    Address specific fears or anxieties in small groups;

       «•    Involve all employees in discussing the need for change;

       «•    Talk about the expected gains, as well as expected changes in a
             reinvented organization; and

       «•    Allow adequate time for employees to grieve over the changes.


       Managing the exploration phase:

       «•    Communicate with all employees and keep them updated on the
             latest happenings in the organization;

       E?    Involve the employees in the process of reinvention from the
             beginning;

       «•    Offer assistance/counseling to employees at different levels of
             readiness;

       «»    Identify the resources needed and available for the reinvention
             effort,  such as training courses or consultant help; and

       K?    Encourage employees to be entrepreneurial in finding resources and
             ideas.

       Managing the consent/commitment  phase:

       «*•    Fully embrace reinvention ideas;

       «•    Institutionalize reinvention ideas as soon as possible; and

       «•    Provide continued training to help employees convert to the new
             way of doing business.
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REINVENTING EPA	VII. Inytementing Charge

Moving Forward

      To maintain, strengthen, and move ahead with the change process requires
the involvement and support of all EPA employees. In particular, the dedicated,
continuing commitment of managers to support change is necessary.  Without
continued attention to EPA's ultimate vision, we will lose momentum, making
success that much harder to attain.  We must take the time now to do this right,
so that we  are not in a position of doing it over.  Change is an evolving process,
and without sustained attention to where we are going, what process we are using
to get there, and what skills we must develop along the way, we are in danger of
getting onto the wrong track, or of getting derailed entirely.  However, the
destination  will be worth the trip, if we maintain our focus on EPA's shared vision.

      This  document has discussed several major areas of consideration for
reinventing  the Agency.  While the change process will be  difficult and will  take a
long time to implement, it will move EPA into an exciting new culture and way of
achieving its mission.  Our culture will become one in which all employees are
valued, and fully participate in the work of the Agency. We will have clear values
and a vision which are shared by all employees, and we will better serve our
stakeholders and be able to  respond to their needs. At no  time in its history has
EPA been more prepared and responsive to making a change of this magnitude,
and it is up to all employees to make the most of this unique opportunity to make
EPA an even better organization.
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REINVENTING EPA                                            Appendices
                         APPENDICES

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 REINVENTING EPA - STEPS TOWARD A STRONGER WORKFORCE

      Appendix A:  Reinvention Implementation Plans
              FINAL 11/21/94  Revision
This  revision  of EPA's  reinvention  guidance  Appendix A  reflects
outcomes agreed upon  by the  Administrator and  Senior Leadership
Council at the Council's 11721 /94 meeting. It supersedes any previously
distributed versions of Appendix A.

Appendix A is designed to provide a format for Assistant, Associate, and
Regional Administrator (AA/RA) Reinvention Implementation Plans, and
to describe the areas that are to be  addressed in these Plans. This
revision of Appendix A also includes information developed and agreed
to by the Senior Leadership Council for developing and submitting
Reinvention Implementation Plans and reorganization proposals:

•    Attributes: for AAs/RAs to use in determining how best to
      structure their organizations; and

•    Development,   Review,  and  Approval  Process:   for
      Reinvention   Implementation   Plans   and   AA/RA
      reorganization proposals.

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REINVENTING EPA	Appendix A


                     Reinvention Implementation Plans

      All Assistant,  Associate, and  Regional Administrators  must submit Reinvention
Implementation Plans to the Administrator by March 31, 1995.  If you plan to reorganize,
and need additional time to develop a proposal, you may submit your Plan without a fully
detailed  "Organizational Design" section; however, you must at least indicate your intent
to reorganize and briefly describe how you plan to reach the Agency's reinvention goals
(reduced organizational layers, 11:1 employee/supervisor ratio, etc.)  In this event, you may
submit  your detailed "Organizational Design" section after  March  31, along  with a
reorganization  proposal, but no later than June 30,  1995.
Format and Content

      The content  of the plans follows the reinvention components set forth in this
guidance document.  In addition, EPA's senior leadership has identified six organizational
attributes for Assistant/Associate/Regional Administrators to use in determining how best
to  structure their  organizations:   Accountability;  Communication  and  Coordination;
Customer Focus; Integrity\ Efficiency and Effectiveness; Measurement and Evaluation; and
Reinvention and Streamlining. These attributes are described on pages A-6 through A-12
of this revised Appendix A.  Development of each plan  should be an inclusive process,
involving unions,  employees, customers, and other internal and external  stakeholders.
Although additional information may be submitted in any area, at a minimum, the plans
must address the issues in each of the following 5 sections. As you prepare your plans,
please use the same section numbers and headings as those listed in the following format:
I.   INTRODUCTION.  An overall description of your organization's approach to reinvention at the AA/RA
    level and the sub-office levels.  Identify your organization's understanding of the need for change, the
    goals that you are seeking to achieve in organizational and workforce transformation, the  results that
    you think will accrue from the change, and the challenges that you face.  Describe the approach you are
    using to have an  open and inclusive process that includes customers,  unions, employees, and  other
    stakeholders in reinventing your organization.

II.  REINVENTION GOALS.  For each reinvention goal below, provide:

    •  A description of the state your organization was in regarding this goal before reinvention
       activities began. This is the baseline against which your  success in meeting the goal will be
       measured,  and should include actual data wherever applicable.

    •  A description of what you have accomplished toward meeting the goal thus far.

    •  A description of the specific steps  and activities you plan to take to meet the goal, if you have
       not already met the goal. Describe any  barriers you anticipate in reaching the goal, and how
       you plan to overcome those.

    •  A description of the process(es) you have used thus far to meet the goal, and what process(es)
       you plan to use to complete the remaining steps and actions.

    •  The specific deadlines and milestones that your organization has set for accomplishing the steps
       and actions that you plan to take.
                                          A-1                     FINAL 11/21/94 REVISION

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REINVENTING EPA                                                                     Appendix A

    A.  SHARED VISION AND VALUES:  A shared picture of your organization's desired future (vision), and
        the operating principles that are important for working within the organization (organizational values
        and behaviors).

    B.  CUSTOMER FOCUS: Conducting your business so that everything you do supports the ability of
        front-line  workers,  inside  and outside  EPA,  to deliver improved environmental results to
        stakeholders.  [Customer  focus applies in all reinvention activities, including determining the
        organizational vision and values, working collaboratively, teamwork, organizational design, process
        re-engineering.]

    C.  DIVERSITY: Having, utilizing, and valuing diversity throughout your organization at all levels and
        in all program activities.

    D.  WORKING COLLABORATIVELY:

        1.   Empowerment-Providing  your  employees   with  the  knowledge,   skills,   authority,
             accountability, and capacity to achieve quality results.

        2.   Teams-Working collaboratively within your organization and across organizations, using
             groups of people with complementary skills who hold themselves mutually accountable for
             their performance.

        3.   Management Behavior-Redefining the roles  and skills of your managers so they are
             coaches and facilitators who remove barriers to  employee productivity  and creativity.


    E.  ORGANIZATIONAL DESIGN: [If you  plan to reorganize,  and need additional time to develop a
        proposal, you may submit your Plan without addressing this section in detail; however, you must
        at least indicate your intent to reorganize and briefly show how you plan to reach EPA's reinvention
        goals listed below.  In this event, you may submit your detailed "Organizational Design" section
        after March 31 if more time is needed, along with a formal reorganization proposal, but no later than
        June 30, 1995.]

         1.   Reduced Organizational Layers-Minimizing the number of management layers between the
             people  doing the work and the decision-makers.

         2.   1:11  Supervisor-to-Emplovee Ratio—Having an  average supervisor to  employee  ratio  of
             1:11  in each AA/RAship by 9/30/96.

         3.   "Headquarters'/Administrative  Staff Redeplovment-Wherever appropriate, redeploying
             current supervisors and  OMB-designated administrative and "Headquarters" personnel (see
             Appendix C) to positions directly  impacting customer service by 1999.

         4.  Flexibilitv-An organizational structure that readily accommodates the need for  changes in
             the mission, number, and composition of teams.

         5.  Attributes--EPA senior leadership is giving special emphasis to the following characteristics,
             which apply to the way the Agency conducts  its business and structures its organizations:
             Accountability; Communication and Coordination; Customer Focus; Integrity, Efficiency and
             Effectiveness; Measurement and Evaluation; and Reinvention and Streamlining. Those not
             addressed adequately elsewhere in  this Plan should be addressed  in this section with
              analytic rigor.  A description of the attributes  can be found on pages A-6  through A-12 of
              this Appendix.

 111.  EVALUATION.  Describe how you will gauge the success of your organizational reinvention, and how
      you  will evaluate the measures of success.
                                                                           FINAL 11/2*1/94 REVISION

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REINVENTING EPA	Appendix A

IV.  COMPOSITE MILESTONE CHART. Show how all milestones and deadlines fit together into an overall
    reinvention plan, including critical junctures for assessing your organization's progress.

V.  CONCLUSION. .Describe any issues your organization foresees in implementing change, including
    resource concerns or areas which OARM or the Management Committee/Senior Leadership Council
    should address, and any areas of impact or need from other AAs/RAs which affect your success.
Development, Review, and Approval Process

DEVELOPING THE REINVENTION PLAN (AND AA/RA REORGANIZATION  PROPOSALS)

Step 1 - Plan for Up-front Communication: In developing your reinvention implementation
plan and reorganization proposals, you should ensure that your process allows for sufficient
up-front communication, consultation,  and coordination with your internal and external
customers, stakeholders, and all staff.  This will enable the review and approval process
for your plan -- and if applicable, your reorganization proposal -- to proceed smoothly.  In
developing this communication/coordination strategy, you should consider:

•     Obtaining designated  contacts  in each  AA/RA/Associate-level  Offices to
       work with your office on reinvention plans and reorganization proposals;

•     Designating a contact in your AA/RA/Associate-level Office to  work with
       other  Headquarters  and  Regional Offices on reinvention  plans and/or
       reorganization proposals.

Also, it is important at this  early stage to contact  the Management  and Organization
Division (M&O) on 202-260-5000 for consulting and analytical  assistance in formulating
your plans.

Step  2 - Assess Your Organization:  Using Reinventing EPA, the Agency's reinvention
guidance, determine how well your organization is able to meet  the Agency's reinvention
goals. You should identify any problems and barriers to reinventing your organization, and
develop  recommendations for addressing them.  This may,  or may not, lead to a
reorganization.  If you decide to reorganize your Office:

•     Solicit involvement and input, as appropriate, from employees, unions, and
       external  customers  and  stakeholders,  such  as  the States,   Tribes,
       environmental groups, industry, the Office of  Management and  Budget,
       General Accounting Office, and Congressional committees and staffs.

•     Consult early on with  other affected  Headquarters and Regional  Offices,
       M&O, Human Resource advisors, the Administrator's Office, Congressional
       Liaison, Public Affairs, and the Office of Regional Operations and State and
       Local Relations.

Step  3 - Develop Your Reinvention Implementation Plan:  Using the format provided  on
pages A-1 through  A-3 of this revised  Appendix A, you  should  prepare a  reinvention
implementation  plan covering your entire AA/RA/Associate Administrator-level Office.  (If
                                        A-3                    FINAL 11/21/94 REVISION

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REINVENTING EPA	Appendix A

you have questions on this format, or the required contents of your Plan, please contact
M&O on 202-260-5000.)

Step 3A - Develop Your Reorganization Proposal: After assessing your AA/RA/Associate
Administrator-level Office  and its ability to meet the  reinvention goals outlined in this
Appendix, you are likely to make one of the following determinations:

•    No Reorganization:  Your current organization can meet the goals structured
      as it is now; you will submit your Reinvention Implementation Plan without
      a reorganization proposal.

•    Prior Reorganization:  Your office  must  reorganize;  you  will submit  a
      reorganization proposal before completing your  Plan.

•    Concurrent Reorganization:  Your office must reorganize; you will submit a
      reorganization proposal along with your Plan.

•    Subsequent Reorganization:   Your  office must  reorganize but  needs
      additional  time to  develop  a proposal; you  will  submit a reorganization
      proposal after turning in your Plan.  [NOTE:  You  may submit your Plan
      without a  detailed  "Organizational Design" section by March 31,  1995;
      however,  you  must  submit   this  section,  along  with  your   formal
      reorganization proposal, no later than June 30,  19951.

All of these determinations are acceptable as long as your Office has conducted sufficient
analysis to support and explain your decision.

      A reorganization includes organizational reconfigurations, additions and deletions,
and name changes, as well as addition or deletion of functions. An AA/RA/Associate-level
reorganization is one that  occurs at a level (HQ office or Regional division) immediately
below the  AA/RA/Associate Administrator.  To meet reinvention goals  and attributes
criteria, you also need to address location of critical, smaU-sized program functions below
the AA/RA/Associate level, such as the transfer of a function from one branch or division
to another, or across the organization.

       You  may  submit  lower-level  reconfigurations or  restructuring  as one overall
AA/RA/Associate reorganization, or you may submit lower-level reorganizations separately.
Reorganizations   at all  levels must  meet reinvention  goals,  attribute criteria,  and
internal/external customer involvement.

       If you decide that your AA/RA/Associate-level Office needs to reorganize to meet
the Agency's reinvention goals, you must prepare a reorganization proposal, in addition to
your Reinvention  Implementation Plan. To develop a reorganization  proposal, refer to:

 •     Reinventing EPA:  this information - though not prescriptive - can help you
       to avoid the common pitfalls in implementing change;

 •     EPA's  Organization and Functions Manual:  this provides EPA guidelines,
       procedures, and forms for preparing and submitting reorganization proposals
                                        A-4                   FINAL 11/21/94 REVISION

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REINVENTING EPA	Appendix M

       [NOTE:  M&O plans to review the Agency's reorganization procedures to
       identify needed improvements and streamlining opportunities];

E     EPA's Delegations  Manual:  you will need to  identify any changes to
       delegated authority and arrange to revise appropriate delegations;

•     organizational attributes criteria; and

•     the options for enforcement reorganizations in Regional offices developed by
       the Regional Enforcement Reorganization Task Force.

Again, you should  remember to involve employees, unions, and external customers and
stakeholders, including other affected Headquarters and Regional  Offices, M&O, Human
Resource advisors, the Administrator's Office, and the Office of Regional Operations and
State and Local Relations. M&O will work with you as a consultant and advisor throughout
the reorganization process. You are strongly encouraged to discuss and/or circulate drafts
of your Reinvention Implementation Plan and any reorganization proposals with affected
EPA  offices.
REVIEW AND APPROVAL FOR REORGANIZATION PROPOSALS

Step 4A - Review of Your A A/RA/Associate level Reorganization Proposal: Reorganizations
at the AA/RA/Associate Administrator-level usually involve significant and potentially
controversial changes.  The Agency's senior leadership is open to innovative and wide-
ranging changes,  and wants  to ensure  that appropriate  review  and discussion of the
proposals occur. As a result, they have decided that AA/RA/Associate Administrator-level
reorganization proposals must undergo Agency-wide review for 10 work days.

       Once your final reorganization proposal package is complete, M&O will distribute it
to Headquarters and Regional Offices for a 10-work day "exceptions only  comments"
review period.  Agency Offices are  encouraged strongly to work together to  resolve
comments. M&O will forward  all comments on the proposal and will assist Agency Offices
as needed in discussing and resolving any issues.  The  adequacy of your advance work
with customers and stakeholders — including other Headquarters and Regional Offices — will
affect the number and complexity of comments you receive during the review process. To
the extent possible, you should resolve any issues and conflicts prior to submitting your
final package for review and approval.

       You are not  required  to submit reorganizations below  the AA/RA/Associate
Administrator level (see reorganization description on page A-4) for Agency-wide comment.
Headquarters division-level reorganizations are submitted to  M&O and approved through
EPA's streamlined review and clearance process.  Reorganizations below the division-level -
-  affecting existing division branch and section functions/structure -- may be approved by
the AA/RA without  Agency-wide  review.   However,  if you plan  to reorganize  your
AA/RA/Associate  Administrator-level  Office and the planned reorganization  takes place
across most of  your  lower-level organizations, it is beneficial for  the Agency to  see the
proposal in an overall framework rather than unit by unit. This practice builds trust in the
process to achieve reinvention goals and helps the Agency see its work as a interrelated,
connected mission and organization.

                                       A~lSFINAL 11/21/94 REVISION

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REINVENTING EPA	Appendix A

Step 5A - Approval of your Reorganization Proposals: No later than 15 work days from
receipt of the final reorganization package, M&O will submit a decision memorandum to the
Administrator/Deputy Administrator  for  signature.  To  meet this-tight 15-work  day
turnaround on AA/RA/Associate-level reorganizations, reviewers must review and comment
on proposals  within the requested 10-work day  period and not ask for review period
extensions.

       After your reorganization proposal is approved, M&O will forward the package to
your Human Resource advisor who will transmit the package to the appropriate Union(s)
for review.  The Unions usually are allowed a comment period of 10 work days, although
this may vary by location.  The Human Resource advisor will  notify M&O and you of any
union comments and when the  review  is complete.   A reorganization may not be
implemented until all steps through 5A, including union review, have been completed.
REVIEW AND APPROVAL OF REINVENTION IMPLEMENTATION PLANS

Step 4B - Review of Your Reinvention Implementation Plan:  You need to submit your
reinvention plan to the Administrator, and a copy to M&O, no later than March 31, 1995.
The review of Reinvention Implementation Plans will be accomplished in a collegia! forum.
A Review Panel made  up  of representative stakeholders will be designated to provide
analysis and comments on the  plans to  the Administrator/Deputy  Administrator and
feedback to the submitting office. It is anticipated that the Review Panel will be in place
in early January so that plans coming in  before the due date of March 31, 1995 will be
reviewed and offices can implement their plans as soon as possible.

Step 5B - Approval of Reinvention Implementation Plans: The Administrator and/or Deputy
Administrator will provide feedback to AAs and RAs on the adequacy of their plans, and
implementation of the concepts and actions. The Administrator, Deputy Administrator, and
Review Panel will take into account other actions related to reinvention in reviewing these
plans, such as previously approved reorganizations. They realize many reinvention activities
already are underway, and it is important for you to continue those  efforts.  They see the
reinvention implementation plans as further solidifying and integrating Office and Agency-
wide activities.
 Organizational Attributes

 WHAT IS AN "ATTRIBUTE?"  In context of the "reinvention" process, an attribute is a
 quality or characteristic evident in a Headquarters or Regional Office.    Each Office's
 reinvention plan -- or reorganization proposal if the structure will change — must adequately
 describe how the existing or proposed structure satisfies the attributes in order for Agency
 management to approve the plan for implementation.
 BACKGROUND

 To  strengthen  the ability  of their, organizations  to  reinvent  and  streamline  their
 organizations, address program shifts caused by the Regional Enforcement Task Force, and
 achieve the goals and principles outlined in the Agency's Strategic Plan and their draft

                                        A-6                   FINAL 11/21/94 REVISION

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REINVENTING EPA	              Appendix A

Reinvention Plans, EPA's Regional Administrators requested the Senior Leadership Council
(SLC) to identify the guidelines and parameters for reorganizing the Regional Offices. As
a result, the Administrator charged a subset of the SLC with developing a set of attributes
for the Regions to use in  determining how best to structure their organizations.  This
"Regional Attributes Workgroup" determined that all Headquarters and Regional Offices
must be structured to meet not only the organizational guidelines and factors laid out in
Chapter VI of the  Agency's reinvention guidance,  Reinventing EPA,  but the following
attributes as well:
                                ACCOUNTABILITY
                     COMMUNICATION AND COORDINATION
                               CUSTOMER FOCUS
                  INTEGRITY, EFFICIENCY, AND EFFECTIVENESS
                        MEASUREMENT AND EVALUATION
                        REINVENTION AND STREAMLINING
ANALYTIC RIGOR

Reinvention plans and  reorganization proposals must reflect the analytic rigor used to
determine whether or not a reorganization is needed, and why a particular reorganization
is being proposed. A description of how your AA/RA/Associate-level Office satisfies the
Agency's preferred organizational attributes — described at the end of this revised Appendix
A - is a  key component of analytic rigor.  Analytic rigor refers to the thoroughness and
discipline of your assessment and, in context of developing reinvention plans and activities,
explains:

•    the issues and problems related to your current organizational structure;

•    how  the  current or proposed organization addresses those issues and
      problems;

•    how the organization, current or proposed, satisfies the attributes;

•    how continuity will be maintained to ensure:

            minimal loss of momentum for, or work slowdown on, single
            media programs, and management & financial functions;

            continued  or improved progress in multi- and  cross-media work
            and strategic priorities;

            existing national procedures, processes and systems  are still
            carried out; and

•    overall why a reorganization is  or is not being sought.
                                       A-7                    FINAL 11/21/94 REVISION

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REINVENTING EPA	Appendix A

      There is no one "right" way to demonstrate analytic rigor. Each Headquarters and
Regional Office must use its own judgment in determining how best to show or report on
the analysis supporting its decision of whether or not to reorganize.  A good example of
analytic rigor in a reorganization proposal is the inclusion of a walk-through of how major
activities in each environmental media  would work under the new structure, compared to
the existing  structure.

      Another example that highlights  the  thinking on  continuity  of functions is the
inclusion of  an implementation plan that lays out a smooth transition from the current
structure to  the proposed one,  and describes considerations that will be affected such as:
budget allocation and financial system changes; staff training and developmental needs;
telecommunications, computer, or LAN needs and changes; and directives (delegations of
authority, guidance, policy).

      EPA's senior  managers believe analytic rigor  is  important,  not to serve  as  a
justification  or "paper trail," but rather as a means of communicating the  intent of and to
discuss how the proposed plan  might work in creating a better operating organization. EPA
must be able to answer questions from internal and external stakeholders and customers
(including employees,  Congress, states and tribes) such as "Why is (or isn't)  a new
organization needed?" "What problem(s) will  be improved with the reorganization?"  "Will
transaction  costs increase or decrease?" "How  will the new organization better deliver
services or fulfill its mission?"  "What will it  deliver in terms of benefits?"
INCLUSION OF THE ATTRIBUTES

      EPA senior leadership has determined that all Headquarters and Regional Offices must
be structured so that they meet these attributes, in addition to the guidelines and factors
laid  out  in Chapter VI of the Agency's  reinvention guidance.  Agency Offices should
address the attributes as follows:

•    If you decide not to reorganize: If you determine that your AA/RA/Associate
      Administrator-level Office can meet the Agency's reinvention goals and satisfy
      the organizational attributes —  and  therefore choose not to reorganize — you
      must describe how  your  organization addresses  the  attributes  in the
      "Organizational Design" section of your reinvention implementation plan.

•    If you decide to reorganize: If you determine that your AA/RA/Associate-level
      Office needs to reorganize to meet the Agency's reinvention goals and satisfy
      the attributes, you must declare and describe any intent to reorganize in the
      "Organizational Design" section of your reinvention plan.  You also  must
      describe how your organization will address the attributes in the "Analysis of
      Benefits and Impact on Program"  section of your reorganization proposal.
      Your reorganization proposal must also follow the  Agency's guidelines for
      preparing and submitting reorganization proposals.  Offices  considering  a
      reorganization  should  contact M&O  on  202-260-5000  for  consulting
      assistance and reorganizing guidance as soon as you are aware of your need
      to reorganize.
                                        A-S                    FINAL 11/21/94 REVISION

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REINVENTING EPA
                                    Appendix A
DESCRIPTIONS OF THE ATTRIBUTES
ACCOUNTABILITY
    DESCRIPTION
EXAMPLES AND CONSIDERATIONS
    Assigns explicit responsibility from the AA/RA
    through all subordinate  levels of  management
    for day-to-day delivery and oversight of each:

    --  environmental program;

    --  management,  administrative and  financial
       function;
    —  multi- and cross-media initiative; and

    -  strategic priority, & implementation of the
        Agency's Strategic  Plan.

    Ensures responsibility is clearly established for:

    --  national  program  consistency  (including
        implementation, use, and enforcement  of
        national policies, regulations, & standards
        for media programs, multi-media programs,
        the Strategic Plan and other initiatives);

    -  signing  off  on  grants,  permits,  MOUs,
        Administrative  Orders, etc.

    -  reaching agreement with HQ & Regions  on
        priorities;

    -  setting up state and tribal programs, and
        performing oversight.
Designation of knowledgeable/credible program
contact who has real authority and control over
resources to:

—  make  decisions   and  speak   for   the
   Headquarters or Regional program;

--  work with  HQ  &  Regions  on policies,
   planning,  budgeting, managing,  evaluating
   program activities;

—  ensure  program  work  "gets  done"  &
   national goals pursued.

Contact  at  Division director  level  for major
media programs in the Regions with designated
mid-  and  lower-level  contacts  for  routine
interaction.

Offices account  for and  report  FTE  &  base
allocation, and PRO & AC&C usage, by program
element.
                                               A-9
                        FINAL 11/21/94 REVISION

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REINVENTING EPA
                                    Appendix A
COMMUNICATION AND COORDINATION
    DESCRIPTION
EXAMPLES AND CONSIDERATIONS
    Clearly   shows   two-way   communication
    channels to:

    -  provide  for  communication   among
       customers  and  stakeholders,  and  regular
       coordination among HQ and Regions;

    -  ensure  customers and stakeholders know
       whom to contact & can get to "the right
       people" as quickly as possible;

    --  promote routine business occurring simply;

    -  facilitate  teamwork,  and   expeditious
       coordination   of   work,  whether  media-
       specific or mu!ti-/cross-media.
Infrastructure in place to develop a coordinated
response to  Congressional, OMB,  HQ,  lead
Region,  and external requests for information,
such, as:

-  FTE  and AC&C estimates and justifications
   for environmental program budgets;

--  reports required by statute, OMB, or the Hill;

--  public  requests for information on  EPA
   initiatives,  such  as the  Common  Sense
   Initiative.
CUSTOMER FOCUS
    DESCRIPTION
EXAMPLES AND CONSIDERATIONS
    Identifies specific key customers, stakeholders,
    and partners,  such as:

    -  internal: the Administrator, HQ and Regional
       Offices, employees, and unions;

    -  external:  public.  Congress,  other  Federal
       agencies,  states, tribes, localities,  other
       countries, media, enviros, and industry.

    Describes how the proposed organization  will:

    -  serve customers/stakeholders better and/or
       lead to better environmental protection;

    -  lead   to  better  customer   participation,
       understanding, and  service.
Summary  of   problems/issues  identified  in
discussions with customers, stakeholders, and
partners -- including unions and all affected EPA
offices.

Documented   collaboration  with  customers,
stakeholders,  and partners  in developing the
proposed reorganization.

Explanation   of  how  the  organization  will
maintain objective  focus on  key  customers,
stakeholders, and partners.
                                                _L
                                               A-10
                        FINAL 11/21/94 REVISION

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REINVENTING EPA
                                                                                     Appendix A
INTEGRITY, EFFICIENCY, AND EFFECTIVENESS
    DESCRIPTION
EXAMPLES AND CONSIDERATIONS
    Describes clearly how the:

    --  efficiency & effectiveness of EPA programs,
       functions, and services will be improved;

    --  integrity of  environmental programs  and
       stewardship of resources (human, financial,
       information, material, etc.) will be protected;

    --  important  but   easily   overshadowed
       programs,  like small  (Eg/UST; pesticides;
       radon),  or vulnerable or sensitive (Eg/105
       grants; StPs) programs have critical mass for
       maintaining  expertise,   effectiveness,
       presence in state  and other relations, etc.;

    -  Senior Resource Official will carry out that
       role across his/her HQ Office or Region, and
       with counterparts in HQ and the Regions.
Activities for which close coordination is critical
to assure quality, speed,  or volume should be
assigned together.

Offices  account for and report FTE  & base
allocation, and PRO & AC&C usage, by program
element.
MEASUREMENT AND EVALUATION
    DESCRIPTION
EXAMPLES AND CONSIDERATIONS
    Identifies success measures, and outlines how
    the office will evaluate overall effectiveness in:

    -  meeting goals and achieving environmental
        results more efficiently and effectively;

    -  better serving customers and stakeholders;

    --  improving  management  of programs  and
        resources;

    --  developing & communicating environmental
        program goals,  indicators, &  results  into
        annual feedback process;

    --  identifying priorities  unique to  that HQ  or
        Regional Office,  and describing how they
        would work in that organization,  such  as
        hard rock mining  in Region 8.
Implementation   plans   lay  out   baseline,
milestones,   &   schedule   for  evaluating
effectiveness in:

--   meeting   the   reinvention/reorganization
    attributes;

—   meeting  customer  needs   &  sustaining
    customer focus;

-   fulfilling statutory mandates;

--   pursuing the EPA  Strategic  Plan,  GPRA-
    required  performance  plans,  and  other
    tactical plans.
                                              A-11
                        FINAL 11/21/94 REVISION

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REINVENTING EPA
                                    Appendix A
REINVENTION AND STREAMLINING
    DESCRIPTION
EXAMPLES AND CONSIDERATIONS
    Presents  an  organizational  framework that
    demonstrates:

    -  enhanced   flexibility,   adaptability,   and
       responsiveness in accommodating change &
       emerging priorities;

    --  change  from  multi-layered  review  and
       control to  empowered employees  who are
       accountable for results;

    —  redefined  management roles emphasizing
       coaching, mentoring, and removing barriers
       to employee productivity and creativity;

    --  more efficient operational processes;

    --  reduced  overhead,  and  increased
       productivity  in  protecting  health  and the
       environment;

    --  greater  opportunities  for cooperation and
       teamwork  within the office, and with EPA
       offices & external customers;

    -  better  management of  all  programs and
       intersecting  priorities   ("matrix
       management");

    —  strengthening delivery  of service or value;

    --  progress  toward   creating   a   working
       environment that places  a  high  value  on
       workforce and cultural diversity;

    --  progress toward enhancing the HQ/Regional
       working relationship.
Change from a hierarchical  organization  to  a
flattened  organization,  with  an   employee-
supervisor ratio of 11:1.

Fewer managers between those doing the  work
and the decision-makers.

Collaboration  with  and  concurrence   from
unions,  all affected EPA offices, and Congress
when   necessary,   on   the    proposed
reorganization.

Unnecessary layers of  review and oversight
eliminated while  maintaining appropriate levels
of review for "complex, technical,  or volatile
jobs."

Reduction  in number  01   deputies,   special
assistants,   and   "administrative   control"
positions (personnel, budget, etc.)

Flexibility   to assemble ad  hoc  teams   -
comprised   of  HQ,   Regional,  and   state
representatives - for a finite period  of time to
deal with issues such as stormwater permitting
problems.

Establish  a  diversity strategy that includes:
building a diverse workforce and assure that the
Agency's positions of influence reflect diversity;
monitoring  cultural  diversity  activities  and
indicators;  and meeting  workforce and cultural
diversity goals.
                                               A-12
                        FINAL 11/21/94 REVISION

-------
REINVENTING EPA
                                                                             Appendix A
             REINVENTION
       IMPLEMENTATION PLANS
      Introduction-Inclusive Process
      Shared Vision and Values
      Customer Focus
      Diversity
      Working Collaboratively
       • Empowerment
       • Teams
       • Management Behavior
      Organizational Design    	
       • Reducing Organizational Layers
       • 1:11 Supervisor-to-Employee Ratio
       ' Hdqters/Admin Staff Redeployment
       • Flexibility
       • Attributes
      Evaluation
      Composite Milestone Chart
      Conclusion
     Reorganization Proposals ...
     must be submitted to the Management and
     Organization Division, and may be submitted
     at any time;  proposals should consider
     Reinvention  criteria so that unnecessary
     reorganization is prevented.
"Reinvention Implementation Plans"...
are comprehensive. One section of the Plan
includes discussion of the organization's
capability to meet specific reinvention goals,
and may describe a planned reorganization;
the actual Reorganization Proposal should
not be submitted in the Plan.

REORGANIZATION  PROPOSALS
                 REQUEST FOR CHANGE
                 IN ORGANIZATION
   NEED FOR CHANGE
                                                     TITLE OF UNITS AFFECTED
   CONCISE STATEMENT EXPLAINING
   CHANGE

   ATTACHMENTS
    • Impact on personnel &
         administrative systems
    • Benefits and impacts on program
    • Organization charts & functional
         statements
    • Staffing patterns

   EPA FORM 1110.1
                                         A-13
               FINAL 11/21/94 REVISION

-------
REINVENTING EPA                                                    Appendix B
               Resources to Support EPA Reinvention
      This appendix provides a listing of resources available to the EPA for  its
reinvention efforts.  The "Summary  of  Educational Resources  to  Support EPA
Reinvention"  is an excerpt from the  document: "EPA Reinvention  - Educational
Resources" prepared by the Quality Advisory Group  (QAG),  which contains more
detailed information on the resources listed here. They may  be contacted at 260-
6241 for copies of that report.  Also contained in this appendix is a brief listing of
some of the reinvention tools provided by the Agency. For additional information on
these reinvention tools, call 260-4467.

Reinvention Tools: Update and Status

Multiple Career Path Guide:    This tool will provide guidance on the key elements
of non-supervisory work at the senior grades in positions across the agency.  It will
include standardized positions descriptions that organizations can use if they desire,
although other standardized approaches to "p.d's" will also be included. The guidance
lays the foundation for delegated classification authority at the  agency.  It also
provides a key link to the existing personnel regulations for those employee groups
working on career development guidance for non-supervisory staff  at the senior
grades.

Status:  Will be completed on schedule in  Fall 1984.

Inventory of Organizational Development Consultants:   Key to the transition to a
reinvented organization will the movement of about  1300 current supervisors into
non-supervisory positions. This issue, in addition to others that will arise during the
reinvention process, may require the assistance of organizational development/change
expertise.   This inventory will make  information on such consultants available.
Information on procuring the expertise will also be included.

Status:  Will be issued in  Fall, 1994.

Guidance on Moving Supervisors to Non-Supervisory Positions:  Key decisions recently
issued by the  Merit Systems  Protection Board may  have implications for  the
movement of managers to non-supervisory positions.  While it is not expected that
these decisions will impede the transition, it is important that senior management
receive legally and  technically sound guidance.

Status: OHRM and OGC have partnered to jointly consult with 0PM on this issue.
OGC/OHRM joint guidance to be issued.
                                    B-1

-------
REINVENTING EPA
Appendix B
Summary of Educational Resources to Support EPA Reinvention
Tonic. Subtonic and Resource Description Resource Contact

A.
1.
2.
3.
4.
5.
6.
B.
1.
2.
3.
4.
5.
C.
1.
2.
3.
4.
5.
QUALITY
Concepts/Problem Solving Tools
EPA Quality Course
Introduction to Quality
Facilitator Course
Process Improvement Toolbox
Memory Jogger Plus +
Quality Action Team Facilitators
Reengineering
Business Process Reengineering
Reengineering Courses (assorted)
Reengineering: Basic Concepts
Reengineering the Corporation
Reengineering Team Facilitators
Customer Orientation
EPA Quality Course
Putting Customers First
Customer Service Courses (assorted)
Customer Service
Books (assorted)
Type

Workshop
Workshop
Workshop
Booklet
Book
Consulting

Workshop
Workshops
Briefing
Book
Consulting

Workshop
Workshop
Workshops
Workshop
Books
„

260-6241
260-6241
260-6241
260-6241
260-6241
260-6241

260-6241
260-3297
260-6241
260-6241
260-6241

260-6241
260-6241
260-6241
260-3297
260-6241
                                       B-2

-------
REINVENTING EPA

D.
1.
2.
A.
1.
2.
3.
4.
5.
A.
1.
2.
3.
4.
5.

A.
1.
2.
3.
Tonic. Subtopic and Resource Description

Benchmarking
Benchmarking Orientation
Resource
Type

Workshop
Benchmarking Books (assorted) Books
LABOR-MANAGEMENT RELATIONS
General
Labor-Mgmt. Relations for EPA
Supervisors and Managers
Negotiations and ADR for Supervisors
and Managers
Impact of E.O. 12871 on EPA Labor-
Management Relations
ADR in EPA Labor Relations
ADR Practitioners
VALUING DIVERSITY
General
Cultural Diversity Awareness Seminar
Cultural Diversity Awareness Course
Cultural Diversity Courses
Cultural Diversity Train-the-Trainer
Fostering Diversity Seminar
CHANGE MANAGEMENT
Organizational Change
Communicating Change Initiatives
Establishing Performance Expectations
Exec. Forum on Environmental Leadership

Workshop
Workshop
Briefing
Booklet
Consulting

Workshop
Workshop
Workshops
Workshop
Workshop


Workshop
Workshop
Workshop
Appendix B
Contact

260-6241
260-6241
260-4467
260-4467
260-4467
260-4467
260-6647

260-3297
260-3297
260-3297
260-3297
260-0523


260-0523
260-0523
260-0523
B-3

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REINVENTING EPA

4.
5.
6.
7.
8.
9.
10.
a.
b.
c.
d.
e.
f.
g-
11.
12.
13.
14.
15.
16.
17.
Topic. Subtooic and Resource Description

Framework for Supervisory Leadership
Fostering Improvement Through
Innovation
Keys to Managerial Leadership
Learning Strategies
Managing Change
Managing Organizational Change
OPM Exec./Mgmt. Development Programs
Alternative Dispute Resolution
Federal Executive Institute Res.
Government Performance and Results
Management Assessment Program
Org. Transformation in the Public Sector
Reinventing the Organization
Seminar for New Managers
Org. Change Courses(assorted)
EPA Institute Learning Lab Facility
Org. Change Audio Self-Learning
Programs
Org. Change Books
EPA Rotational Assignments
Intergovernmental Personnel Act
Assessment Consultation, Briefing and/or .
Resource
Type
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop

Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshops
Learning Lab
Audio Tapes
Books
Rotation
Rotation
Consulting
Appendix B
Contact
260-0523
260-0523
260-0523
260-3297
260-0523
260-3297

260-0523
260-0523
260-0523
260-0523
260-0523
260-0523
260-0523
260-0523
260-3297
260-0523
260-0523
Individual
Managers
260-0523
260-0523
Intervention
                                B-4

-------
REINVENTING EPA

18.
B.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Tonic, Subtopic and Resource Description

Mgmt. Development Consultation,
Briefing and/or Intervention
Participation/ Teamwork
A.B.C.D.-Always Comfortable Deciding
Building Effective Teams
Coaching for Optimal Performance
The Complete Facilitator
Decide to Decide: When & How to Do it
Developing Job Skills
Getting Things Done in the Bureaucracy
Myers-Briggs Type Indicator
Resolving Team Conflict
Teamwork: Managing Change Together
Teamwork Courses (assorted)
Team Learning Center
Teamwork Related Computer- based
Training-Communicating with Style
Interpersonal Skills Courseware
Teamwork Audio Self-Learning Programs
Teamwork/TQM Books
Assessment Consultation, Briefing and/or
Resource
Type
Consulting

Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshops
Learning Lab
Computer-
Based
Computer-
Based
Audio Tapes
Books
Consulting
Appendix B
Contact
260-0523

260-3297
260-3297
260-0523
260-3297
260-3297
260-0523
260-3297
260-3297
260-0523
260-3297
260-0523
260-3297
260-0523
260-3297
260-0523
260-0523
260-0523
         Intervention
18.
Our Team and My Teammates - Survey
Consulting
260-0523
         TOPIC. Subtopic and Resource Description
                                           Resource
                  Contact
                                      B-5

-------
REINVENTING EPA
                                                                      Appendix B

c.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
a.
b.
c.
16.
17.

Shifting Roles of Management
Coaching
Coaching for Optimal Performance
Conducting Change Initiative Meetings
Establishing Performance Expectations
Exec. Forum on Environmental Leadership
Facilitation Skills
Focus 2000: New Directions for leaders
Fostering Improvement through
Innovation
Framework for Supervisory Leadership
Getting Your Ideas Across
Keys to Managerial Leadership
Leadership Orientation
Managing Former Peers
Mgmt. or Leadership Skills Assessment
OPM Exec. /Mgmt. Development Programs
Executive Development Seminar
Management Development Seminar
Seminar on Managerial Competencies
Resolving Conflicts
Understanding Supervision
Tonic. Subtooic and Resource DescriDtion
Type

Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop
Workshop

Res.
Workshop
Res.
Workshop
Res.
Workshop
Workshop
Workshop
Resource


260-3297
260-0523
260-0523
260-0523
260-0523
260-3297
260-3297
260-0523
260-0523
260-0523
260-0523
260-3297
260-3297
260-0523

260-0523
260-0523
260-0523
260-0523
260-0523
Contact
                                      B-6

-------
REINVENTING EPA
                  Appendix B

18.
19.
20.
21.
22.
23.
D.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Shifting Roles of Mgmt. (assorted
courses)
The Changing Role of Managers
Shifting Role of Management
Management Skills for Project Managers
Principles of Project Mgmt.
Shifting Role of Mgt.
Personal Change
Career Development from Start to Finish
Career Enhancement Orientation
Looking Glass Workshop
Self-Directed Career Planning
Personal Change Courses (assorted)
Personal Change Computer-Based
Training - Time Management Assessment
Profile
Personal Change Self-Learning Programs
Beyond Words: Reading, Writing and
Math
Reading and Writing Enhancement
Creating Your Individual Development
Plan
Personal Change Books
Career Enhancement Program
Certificate Program for Secretaries
Type
Workshops
Briefing
Audio Tapes
Video Tapes
Video Tapes
Books

Workshop
Workshop
Workshop
Workshop
Workshops
Computer-
Based
Audio-Tapes
Videos
Videos
Booklet
Books
Development
Development

260-0523
260-0523
260-0523
260-3297
260-3297
260-0523

260-3297
260-3297
260-3297
260-3297
260-0523
260-0523
260-0523
260-3297
260-3297
260-0523
260-0523
260-3297
260-3297
         Topic. Subtopic and Resource Description
Resource
Contact
                                       B-7

-------
REINVENTING EPA                                                   Appendix B
14.
15.
16.
17.
18.
19.
Executive Potential Program
Goalsetters Reaching for Opportunities
Greater Leadership Opportunities
Howard Univ. Env. Specialty Program
Women's Executive Leadership Program
Career Development
Type
Development
Development
Development
Development
Development
Consulting
260-3297
260-3297
260-3297
260-3297
260-3297
260-0523
        Workshop/Intervention



Contacts

If you have questions which impact on:

Labor-Management Relations, contact your labor Relations Advisor, or utilize the labor-
management clearing house, staffed by the Executive Secretariat of the National
Partnership Council; for more information, contact Megan DeLamar at (202) 606-1932
or Doug Walker at (202) 606-1479.

Workforce Planning and Human Resources, contact the Office of Human Resources
at (202) 260-4467.

Focusing on the Customer, contact the Customer Service Development Team at (202)
260-8079.

Organization. Management, or  Implementation Plans, contact the Management and
Organization Division at (202) 260-5000.
                                    B-8

-------
REINVENTING EPA	Appendix B

Written Materials

      "Reinventing EPA: Stronger Environmental Protection through Empowered
                 Employees."EPA's  Streamlining Plan to  the  Office  of
                 Management and Budget, June 30, 1994.
                                                            t

Vision and Values

      Keston, Joan B. "Dimensions of Excellence: Changing Organizational
           Culture."The Public Manager. Fall 1992.

      Wheatley,   Margaret  J.   Leadership  and  the  New   Science.   San
           Francisco:Berrett-Koehler Publishers, Inc., 1994.

Customer Focus

      Byham, William C. and Jeff Cox; Zapp. the Lightening of Empowerment: first
                 Ballantine Books 1988.

      Hunt,  V. Daniel;  Quality in America-How to  Implement A Competetive
           Quality Program: Technology Research Corporation, 1992.

      Wright, Furrow; Organizational Transformation through a Customer Focused
           Human Resources alignment Project.  Environmental Protection Agency,
           presented at 1993 FQI National Federal Quality Conference-Proceedings.
           1992.

Diversity

      Environmental Protection Agency,  Office of Administration and Resources
           Management.  Cultural Diversity Challenges  for  EPA—A
           Strategy for Bold Action.  Diversity Task Force, November
           1992.

      Jamieson, David, and Julie O'Mara; Managing Workforce 2000-
           Gaininq the Diversity Advantage: Jossey-Bass Publishers, 1991.

Working Collaboratively

      Belasco, James A, and Ralph C. Stayer.  Flight of the Buffalo-Soaring to
           Excellence. Learning to Let Employees Lead: Warner Books, 1993.

      Block, Peter. The Empowered  Manager. San Francisco: Jossey-Bass
                 Publishers. 1987.
                                    B-9

-------
REINVENTING EPA	Appendix B

      "Empowerment." Covey Leadership Center, Inc. 1993, pp. 53.

      EPA Human Resources Council. "White Paper on the Framework for
                 Workforce Development."  1994.

      Hill, Norman C. How to Increase Employee Competence. New York: McGraw-
           Hill Book Company. 1984.

      Huey, John. "The New Post-Heroic Leadership. "Fortune. February 21, 1994.
           42 + .

      Katzenbach, Jon R. and Douglas K. Smith. "The Discipline of Teams." Harvard
           Business Review.  March-April 1993. 111-120.

      Kouzes, James M, and Barry Z. Posner. The Leadership Challenge-How to Get
           Extraordinary Things Done in Organizations: Jossey-Bass
           Publishers, 1991.

      OHRM series of publications on teams.

      Pinchot,  Gifford. Intraoreneurina. New York:Harper & Row. 1985.

      Rigg, Michael. "Vision and Value: Keys to Initiating Organizational Change."
           Industrial Engineering.  June 192,  12-13.

      Shearer,  Beth and Robert Fagin. "Empowerment and Accountability." Training
           and Development Journal. April 1991, pp. 26-31.
Designing Organizations with Appropriate Oversight
      "Beyond Hierarchy: The Search for High Performance." Galagan, Training and
           Development.  August 1992, pp. 21-35.

      Byrne, John A. "The Horizontal Corporation." Business Week. December 20,
           1993.

      Jacque, Elliot.  "In Praise of Hierarchy." Harvard Business Review. January-
           February 1990, pp. 127-132.

      "The Horizontal Corporation." Business Week. December 20, 1993, pp. 76-81.

      "Transforming Organizational Structures. "Accompanying Report of the National
           Performance Review, September 1993.
                                   B-10

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REINVENTING EPA
Appendix C
      OMB Definitions of Supervisor, Administrative, and
           "Headquarters" Personnel for Redeployment

                        (Revised August 19, 1994)
Supervisors
Administrative
                 Employees, including any SES,  identified  as  a  supervisor or
                 manager in FPM letter 298-46 [Oct. 26, 1993] and reported in
                 CPDF codes 1, 2, or 3.
                 Personnel  Specialists:  Employees  that  perform  personnel
                 functions, such as staffing, classification, position management,
                 or labor relations.  NPR counted people in the 200 series (except
                 204 and 205).

                 Budget  Specialists: Employees that perform budget functions,
                 such as program or budget development, review, or analysis. NPR
                 counted people in the 560 and 561 series.

                 Accountants and Auditors: Employees that perform accounting
                 and auditing functions, including financial and management audits.
                 NPR counted people in the 500 series except 512,  526, 545,
                 560, 561, 570,  592, and 593.

                 Acquisition Specialists: Employees in acquisition and procurement
                 functions. NPR counted employees in the following series: 1101,
                 1102, 1103,  1105, 1106, 1150, and 1910.
                                  C-1

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REINVENTING EPA	Appendix C

Headquarters Staff
                  Anyone who works in the following functions or organizations:
                  NOTE: This is a functional definition.  Some people who work in
                  Washington  are  not  in  headquarters and some headquarters
                  organizations are not in Washington.  For  instance,  regional or
                  district offices are usually headquarters organizations.]

                  Management  Headquarters and Support  Functions:    Those
                  functions and the direct support integral to their performance that
                  are involved in the management of programs and/or operations of
                  a department or its components.

                  Management Headquarters and Headquarters Support Activities:
                  Organizations where  more than 25%  of the  work of  the
                  organization is involved in management or direct support functions.

                       - Management: Refers to exercising oversight, direction, or
                       control of subordinate organizations  or units through: [1]
                       developing  or issuing policy guidance;  [2] reviewing or
                       evaluating  program  performance;  [3]  allocating  and
                       distributing resources; or, [4] conducting mid- or long-range
                       planning, programming, or budgeting.

                       -  Direct  Support:  Refers to  professional,  technical,
                       administrative, or logistical support that is performed in, or
                       supplied to, a management headquarters and is essential to
                       its  operation. Direct support includes both staff support
                        (such as providing policy or program analysis or formulating
                       policies,   plans,  and  programs  for  a  management
                       headquarters) and operating support (such  as  secretarial,
                       editorial,  or information  technology services).   Direct
                       support does not include specific products or technical or
                       operating services that are provided on a department-wide
                       or  component-wide basis (such as payroll services) or
                       operating support provided by  a host unit to all tenant
                        organizations.
                                     C-2

-------
  REINVENTING EPA                                                               Appendix C
                      EXECUTIVE OFFICE OF THE PRESIDENT

                         OFFICE OF MANAGEMENT AND BUDGET

                                  WASHINGTON. O.C. 2OSO3
THE DEPUTY DIRECTOR                    AugUSt 19, 1994
   MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND MAJOR AGENCIES

   FROM:            Alice M.
                      Acting Di

   SUBJECT:         Streamlining Plans


          The Vice President  recently reiterated the great interest of the Administration in the
   development of streamlining plans and the importance of efforts to improve them. Review of
   the streamlining plans nvfll be an extremely important element of the budget process.

          Many of you .already  have  had discussions with OMB staff about your June 30
    streamlining plans and the FY 1996 budget, and this dialogue with all agencies will continue.
    As you know, your FY 1996 budget request is due* on September 9 and must include as much
    streamlining information as possible.  It is especially important that your budget request contain
    the full details of your plans for FY 1996 with the milestones of actions to meet the overall
    workforce restructuring and FTE targets in OMB's April 21,1994, planning guidance (attached).

          To reinforce these efforts, the President's Management Council (PMC) recommitted itself
    to the goal of restructuring the government and will be especially active in working with OMB
    and helping agencies improve their plans in accordance with the April 21 guidance. The PMC
    has committed its., agencies to  submit complete, improved streamlining plans to OMB not later
    than October 3. These complete plans will focus greater attention on restructuring of the agency
    organization and work processes and will reflect the importance of related reductions in the
    number of supervisors, headquarters,  and  support staff, as recommended by the National
    Performance Review (NPR). (The NPR's overall goals include a doubling of the span of control
    of supervisors from 1:7 to 1:15 over the next five years and a decrease of 50% of those
    performing headquarters functions.)

           In response to the PMC's request, OMB has further refined the headquarters definitions
    in Attachment D of the April 21 guidance.   (Revision attached.)  Those agencies that can not
     meet the NPR goals in this area should address this matter in their plans.  Within the context
    of the April 21 FTE guidance, each agency should display the FTE reductions it \vill take as a
     result of restructuring separately from any additions due to new Presidential investments. The
     plans also will describe the relationship of the agency's restructuring to other Administration
     priorities, including improved customer service.
     Attachment
                                                C-3

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REINVENTING EPA                                                Appendix D
    Memorandum Describing Agreement Between EPA and
      Headquarters Unions Relating to Labor Participation
                     in Reinvention Activities
The attached memorandum is an example of the new partnerships being forged in
labor and management relationships. This agreement discusses union representation
in Headquarters reinvention activities that involve the establishment of committees.
If you have questions about how this agreement affects your organization, or about
any other aspect of labor partnerships, call your Labor Relations Representative.
                                 D-1

-------
Reinventing EPA                                                                         Appendix D
                                UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                                   '          WASHINGTON. D.C. 20460
                                                                                         OFFCEOF
                                                                                       MMM6TIUTION
                                                                                       AMDRESOMCCS
                                                                                        MANAGEMENT
                MEMORANDUM                 '

                SUBJECT:    Streamlining and Reorganization Committees

                FROM:      Jonathan Z. Cannea^C^C^Z^X
                             Assistant Administrator    •            /\

                TO:         Assistant Administrators
                             Associate Administrators
                         ../ General Counsel  .
                             Inspector General   •
                      .'The purpose of this memorandum is to define 'the procedures by which Streamlining
                 and Reorganization Committees are established in Headquarters organizations of EPA in
                 conformity with the principles of labor-management partnership.

                       Executive Order 12871 requires Federal agencies to establish Partnership Councils at
                 appropriate levels to help reform government.  The Order also requires agencies to involve
                 employees arid their representatives as full partners. The purpose of this Partnership is to
                 reform government consistent with the recommendations of the National Performance Review
                 to bettsf serve the customers and the Agency's mission.

                        EPA is committed to labor-management partnership and has established Partnership
                 Councils at the National level and at Headquarters; Representatives from the American
                 Federation of Government Employees and the National Federation of Federal Employees also
                 sit on EPA's Senior Leadership Council's Management Committee. The SLC's Management
                 Committee develops policy  recommendations and advises the Administrator on issues of
                 strategic importance, including streamlining.          '             .   '<      • •

                        Several Headquarters organizations are moving to establish work groups on
                 .streamlining and reorganizing. In forming workgroups, organizations need-to integrate the
                 Executive Order's partnership mandates with  the streamlining effort as follows: regarding
                 establishment of streamlining committees:
                                                                                        Recycled/Recyclable
                                                   D-3

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         Reinventing EPA     	                                  Appendix D
                             • Management and the unions will jointly announce opening of nominations for
                             service on the committee, its size, scope of duties, anticipated lifetime, etc.
                             Nominations may be made by anyone for either manager or non-manager positions on
                             the committee.

                              • Each union will name a representative to the committee. Management will appoint
                              an equal number of management representatives to the committee.

                              • Management and the unions will seek consensus on the composition of the rest of
                              the committee. If consensus is not reached,  management will make the final decision
                              on the committee's make-up. The number of management representatives and
                              bargaining unit members will be equal.

                              Once formed, the committee will advise management on streamlining,issues. Because
                        workgroup committees at this stage in the evolution of the partnership .are advisory to
                        management, whatever management decides may be subject to collective bargaining by the
                        appropriate unions prior to implementation:

                               The process just described stops short of a fully  streamlined labor-management
                        partnership the goal toward which EPA management and its labor unions are striving.  As
                        experience is gained in operating streamlining and reorganizing committees, management and
                        the unions expect to move to a fully streamlined partnership in which similar workgroup
                        committees will be empowered to make binding decisions which would not be subject to
                        further negotiations.  For a copy of a model streamlined committee that is empowered to
                        make binding decisions, please contact OHRM's Labor Management Relations Office, AFGE
                        or NFFE.

                               We know that many EPA Headquarters organizational units have established their
                         streamlining and reorganizing workgroups prior to the date of this guidance.  You should
                         contact each Union about union representation on  such workgroups where appropriate.

                         cc:          Regional Administrators
                                      Assistant Regional Administrators
U.S.  Environmental Protection Agency'
Region 5, Library (PL-12J)
77 West Jackson Boulevard,  12th Floor
Chicago,  IL   60604-3590
                                                          D-4

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