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With federal agencies under pressure to shrink budgets and programs, consolidating several agencies into one enterprise is often considered as a potential solution. But it’s also a complex undertaking that involves enormous management challenges, some of which may take years to resolve.
To better understand the management challenges involved in creating or restructuring new government enterprises, Booz Allen Hamilton and the Partnership for Public Service studied two agencies: The Department of Homeland Security (DHS) and Office of the Director of National Intelligence (ODNI). Their co-authored new report, “Securing the Future: Management Lessons of 9/11,” reveals what they learned.
Released August 2011, “Securing the Future” cautions that creating new federal agencies can be disruptive, divert attention from important policy issues, and cost more—not less—in the short term. Critical insights revealed in the report, however, can provide valuable guidance for other government consolidations and reorganizations, such as the Consumer Financial Protection Bureau.
DHS and ODNI were created in the aftermath of 9/11 to enhance national security and emergency response by improving information exchange and coordination among agencies. A superstructure that consolidated 22 agencies and 180,000 employees under its umbrella, the DHS was an especially ambitious undertaking, and demonstrated substantial shortcomings during its evolution. Although smaller, the ODNI was confronted with its own management challenges while it built a unique organization to oversee 16 agencies.
“Securing the Future: Management Lessons of 9/11” highlights four fundamental lessons that helped drive the resolution of many of DHS’s and ODNI’s management challenges: Management buy-in is critical; a new organization must adapt a new culture and values; management is key to implementing policy; and the White House and Congress have important roles in ensuring the effectiveness of a new enterprise.
Other lessons outlined in the report underscore the importance of unifying diverse personnel and cultures; the need to navigate complex political systems; and more. And since mergers often occur as a reaction to an immediate crisis, leaders must also get ahead of management challenges by incorporating the flexibility that the new agency will need to function in a continually changing environment.
The report is based on extensive research, including interviews with Booz Allen Executive Vice President (and former DNI) Mike McConnell and individuals instrumental in the standup of DHS and ODNI. Booz Allen Senior Executive Advisor Ron Sanders was also interviewed and contributed to the report, under the leadership of Executive Vice President Jimmy Henry, Senior Vice President Dave Mader, and others.
