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					       A New Government Business Model


  Focused on Results


Streamlining and Integrating Program 

and Business Management for Better 

            Performance 


                 David Garman

           Assistant Secretary for

   Energy Efficiency and Renewable Energy 

                              The Current Situation 



• We focus on “sectors” rather than “programs”
•	 “Sectors” develop and maintain processes and
   systems that duplicate and conflict with
   corporate approaches
•	 Artificial organizational layers are superimposed
   over “programs” – creating inefficiencies
•	 There are too many layers between me and
   many of you



                                                        2

                            What Led to the Need for Change



• Strategic Program Review
   • A comprehensive in-depth review of all EERE programs
   • A need to strengthen our focus on programs and program
     management
• President’s Management Agenda
   • Flatten organizations to make them more responsive
   • Focus on results, not process
   • Link budget with performance
   • End overlapping functions, inefficiencies, and turf battles
   • Make the most of our people, their knowledge, skills, and abilities




                                                                           3

                                             My Concerns and
                                                Ground-rules


I did not originally plan to reorganize. However, in
moving ahead, I decided that a new organization was
needed and would be based on the following:
  • There would be no EERE reduction-in-force
  • It would be done in partnership with the Union
  • We would strive to create win-win situations for our people
  • We would strive for a structure that empowers the people
    managing our programs
  • The “gain” from reorganizing would have to outweigh the
    “pain” of reorganizing




                                                                  4

                                                                                                                                   The Current “Market Sector” Model


                  OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY
                                                                                                                                                                                                                      01/14/02
                                                  Karen Kimball
                                                                                                AS SISTANT SECRETARY
                                                   Chief of Staff
                                                                                                      David K. Garman
                                                                                                                                               EE-1

                                                                                                                    CHIEF OPERATING OFFICER/
                                                                                      PRINCIPAL DEPUTY
                                                                                                                    DAS, OFFICE OF PLANNING,
                                                                                          ASSIST ANT                BUDGET AND MANAGEME NT                                   Office of Planning, Budget and
                                                                                         SECRETARY                                                                                      Outreach
                                                                                                                               Abe Haspel                                            Buddy Garland
                                                                                       Douglas Faulkner
                                                                                                                                                                                       Director
                                                                                                          EE-2                                    EE-3                                               E E-3.1

                                                                                                                                                                               Office of Management and
                                                                                                                               John S ullivan                                          Operations
                                                                                                                         Associate Deputy Assistant
                                                                                                                                                                                       Steven Lee
                                                                                                                                 Secretary        EE-3                                  Director
                                                                                                                                                                                                     EE-3.2
                                                                                                                                                                                                                                              The 5 “market” sectors
                                                                                                                                                                                                                                              (power, industry,
                                                                                                                                        OFFICE OF BUILDING
                                                                                                                                                                                                                                              transportation,
       OFFICE OF                                   OFFICE OF                            OFFICE OF TRANSPORTATION                                                                OFFICE OF FE DERAL             GOLDEN FIELD OFFICE
POWER TECHNOLOGIES                        INDUSTRIAL TECHNOLOGIES                             TECHNOLOGIES                            TECHNOLOGY, S TATE AND                   ENERGY MANAGEMENT
                                                                                                                                       COMMUNITY P ROGRAMS                           PROGRAMS                     (John Kersten †)
      Robert Dixon                                Denise Swink                                 Thomas Gross
                                                                                                                                            Mark Ginsberg                         Elizabeth Shearer                  Manager
                                                                                                                                                                                                                                              buildings, and Federal
Deputy Assistant Secretary                  Deputy Assis tant Secretary                   Deputy Assis tant Secretary
                                                                                                                                       Deputy As sistant Sec retary                    Director
                       EE-10                                         EE-20                                         EE-30                                                                            EE-90
                                                                                                                                                                 EE-40


                                                                                                                                                                                                                                              facilities) and their 17
      William Parks                                 Robert B rew er                            Ri chard Moorer                                (Jam es Pow ell †)
Associate Deputy Assistant                  A ss oc iate Deputy Assistant                 Associate Deputy Assistant                    A ss oc iate Deputy Assistant                                                Atlanta Regional
        Sec retary                                     Secretary                                   Sec retary                                      Secretary                                                              Office
                       EE-10                                          EE-20                                      E E-30                                           EE-40

        Office of Solar Energy                             Office of                                      Office of
                                                                                                                                                                                                                     (Lynda W allace †)
                                                                                                                                                                                                                         Direc tor
                                                                                                                                                                                                                                              offices result in a
             Technologies
                                                                                                                                                                                                                                              “stovepipe” culture.
                                                   Industrial Technologies                           Fuels Development
                                                      Implementation A                                                                                Office of                                                      Boston Regional
            James Rannels
                                                                                                          John Ferrell                         Building Research and                                                      Office
               Director
                                                         Scott Richlen                                                                               Standards
                                 EE-11                                                                      Director                                                                                                   Hugh Saussy
                                                           Director                                                        EE-31                 Edward Pollock, Jr.
    Office of Wind and Geothermal                                                                                                                      Director     EE-41                                                Direc tor
                                                                             EE-21
             Technologies
            Peter Goldman
                                                     Office of Industrial
                                                Technologies Implementation
                                                                                                     Office of Advanced
                                                                                                  Automotive Technologies
                                                                                                                                                   John Talbott
                                                                                                                                                  Deputy Director
                                                                                                                                                                                                                     Chicago Regional
                                                                                                                                                                                                                          Office
                                                                                                                                                                                                                                              The “stovepipes”
                                                                                                                                                  Qonni e Laughlin
                                                                                                                                                                                                                                              include business
               Direc tor                                      B
                                 EE-12                                                                                                            Deputy Director                                                      Peter Dreyfuss
                                                                         †                                Robert Kirk
                                                       (Robert B rew     )                                                                                           EE-41                                                Direc tor
                                                                                                           Director

                                                                         “Layers”                                                                                                                                                             management processes
       Office of Biopower and                              Directo                                                        EE-32
      Hydropower Technologies                                                                                                                                                                                        Denver Regional
                                                                                                                                                                                                                         Office
          Donald Richardson                           Office of Indu                                     of Heavy Vehicle                   Office of Building Technology
               Direc tor
                                 EE-13
                                                        Technologies
                                                      Implementation C
                                                                                                        Technologies                                  Assistance
                                                                                                                                                     Gai l McKinley
                                                                                                                                                                                                                         Bill Becker
                                                                                                                                                                                                                          Director            and systems that
                                                                                                                                                        Director    EE-42
               Office of
          Technology Access
                                                      Henry Kenchi ngton
                                                           Director
                                                                                                      James Eberhardt
                                                                                                         Direc tor
                                                                                                                          EE-33
                                                                                                                                                    Mark B ailey
                                                                                                                                                                                                                       Philadelphia
                                                                                                                                                                                                                      Regional Office         “fragment” EERE
                                                                             E E-23                                                                Deputy Director
            Thomas Sacco
               Direc tor
                                 EE-14
                                                           Office of
                                                      Industrial Program
                                                                                                         Office of
                                                                                                                                                    Ronald S haw
                                                                                                                                                   Deputy Director
                                                                                                                                                                                                                         Ellen Lutz
                                                                                                                                                                                                                          Direc tor           business management.
                                                                                                                                                                     EE-42
                                                          Operations                               Technology Utiliz ation
                                                                                                                                                                                                                     Seattle Regional
     Office of Hydrogen and Super-
                                                                                                                                                                                                                          Office
      Conductivity Technologies                       Theodore Johnson                                  David Rodgers
             James Daley
               Director
                                                          Director
                                                                             E E-24
                                                                                                          Director
                                                                                                                           EE-34
                                                                                                                                                                                                                        Kathy Pierce
                                                                                                                                                                                                                          Direc tor           The “market” sector
                                                                                                                                                                                                                                              organizations create
                                 EE-15

      Office of Distributed Energy
               Resources
            Patrici a Hoffm an
                                                                                                                                                                                                                                 †
                                                                                                                                                                                                                                     Acting   layers on top of
                Direc tor
                                 E E-16
                                                                                                                                                                                                                                              programs resulting in
                                          Programs are not always visible                                                                                                                                                                     inefficiencies.

                                                                                                                                                                                                                                                                         5

                                                                     A New Streamlined, Integrated,
      HQ Corporate
                                                                               and Focused Model
                                                                   Assistant Secretary
                          Communications
                                                                                                           Board of Directors
                            & Outreach
                                                                     Principal Deputy




                              DAS for Technology                                                    DAS for Business
                                Development                                                          Administration
HQ Program and Business
     Management




                                       EERE Program Offices
                                   Solar                                           Program Execution
                                   Wind & Hydropower                                    Support
                                   Geothermal
                                   DE, Elec. Infrastructure & Reliability
                                                                                    Planning, Budget
                                   Biomass
                                                                                  Formulation & Analysis
                                   Industrial Technologies
                                   FreedomCAR & Vehicle Technologies
                                   Hydrogen & Infrastructure                      Information & Business
                                   Building Technologies                           Management Systems
                                   Weatherization & Intergov. Grants
                                   FEMP
Implementation




                           6 Regional Offices                                                          Golden Field Office
     Field




                                                                                                                                6

                                       Streamlined, Integrated, and Focused –
HQ Corporate                                              Assistant Secretary

                                                  Assistant Secretary
                  Communications
                                                                                   Board of Directors
                    & Outreach
                                                   Principal Deputy




          • Role – typical of private sector “Chief Executive Officer”
             • Manages DAS for Technology Development, DAS for Business Administration, and
               Director of the Office of Communications and Outreach
             • Chairs Board of Directors – Uses them on corporate policy, strategic planning, budgeting,
               program evaluation, and peer review
             • Represents EERE to Secretary, the Executive Branch, and Congress
             • Includes all responsibilities of an Assistant Secretary
             • Serves as Performance Evaluation Official for EERE members of the Board of Directors
          • New Perspective – Integration of business management and greater focus on program
            management—and access to a Board of Directors—allows better control of EERE corporate
            message, agenda and operations




                                                                                                           7

                             Streamlined, Integrated, and Focused –
                                                  Board of Directors
 HQ Corporate

                                         Assistant Secretary
                Communications
                                                                        Board of Directors
                  & Outreach
                                          Principal Deputy




• Chaired by Assistant Secretary
• Members drawn from the current senior management pool
• Role – typical of private sector “Board”
   • Directs corporate policy, strategy and budget
   • Serves as “Ambassadors” representing EERE to stakeholders and others (outreach)
   • Provides senior technical / peer review to programs
   • Advises on all technical and analytical issues
• Reports to Assistant Secretary
• New Perspective – Board members can focus on EERE-wide message and agenda




                                                                                             8

                                 Streamlined, Integrated, and Focused –
                                           Communications & Outreach
 HQ Corporate

                                         Assistant Secretary
                Communications
                                                                         Board of Directors
                  & Outreach
                                           Principal Deputy




• Role – Provides communication, outreach and customer service to the public, our corporate
  customers and stakeholders
    • Develops and disseminates information about the budget and EERE polices and
      programs
    • Gathers market information of high relevance to EERE decision-making
    • Coordinates corporate-level stakeholder interactions
    • Conducts corporate-level customer surveys on EERE performance
• Reports to Assistant Secretary
• New Perspective – Elevates corporate communications and outreach to directly reporting to
  the Assistant Secretary




                                                                                              9

                                                                             Streamlined, Integrated, and Focused –
                                                                                  DAS for Technology Development

                               DAS for Technology                                               DAS for Business
                                 Development                                                     Administration
  HQ Program and Business
       Management




                                        EERE Program Offices
                                    Solar                                      Program Execution
                                    Wind & Hydropower                               Support
                                    Geothermal
                                    DE, Elec. Infrastructure & Reliability      Planning, Budget
                                    Biomass
                                                                              Formulation & Analysis
                                    Industrial Technologies
                                    FreedomCAR & Vehicle Technologies
                                    Hydrogen & Infrastructure                 Information & Business
                                    Building Technologies                      Management Systems
                                    Weatherization & Intergov. Grants
                                    FEMP
  Implementation




                            6 Regional Offices                                                     Golden Field Office
       Field




• Role – Exclusive source for program management
    • Manages:
        • All EERE Program Managers and the Regional Offices
        • Excludes almost all business management functions currently housed in the market sector DAS
          organizations—those functions are consolidated and streamlined in the DAS for Business
          Administration
    • Provides customer input to the DAS for Business Administration in the design, development,
      implementation, documentation, and training on EERE processes and systems for program and
      business management
• New Perspective – Allows Program Managers to focus on “program management;” relieves them
  from excessive business management and “roving Ambassador” burdens; incorporates systems
  management principles
                                                                                                                         10

                      Streamlined, Integrated, and Focused –

                            11 EERE Program Offices



Solar	                 Includes PV, CSP, and Low Temperature Solar Collectors (e.g. water
                       heaters). Zero Net Energy Buildings activities moved to Building
                       Technologies.


Wind &                 Includes all Wind and Hydropower. Any other “fluid
Hydropower             dynamics” related renewables work, such as ocean current,
                       to be included here.


Geothermal             Includes all Geothermal.



Distributed Energy,    Includes Distributed Energy Resources, Transmission Reliability,
Electricity            Energy Storage, and HTS, but moves DER/Fuel Cells to Hydrogen
                       & Infrastructure.
Infrastructure &
Reliability




                                                                                            11

                 Streamlined, Integrated, and Focused –

                       11 EERE Program Offices


Biomass          Includes OPT/Biopower, OTT/Biofuels, OIT/Black liquor gasification,
                 OIT Agriculture and black liquor from OIT/Forestry.



Industrial       Includes IOF Vision Industries (less OIT/Agriculture and the OIT/Forestry
Technologies     black liquor activity), IOF Crosscutting, OIT Industrial Technical Assistance,
                 and the R&D-related or private sector-related elements of Financial
                 Assistance. Government grant related activities are moved.


FreedomCAR       Includes Hybrid Systems R&D, Advanced Combustion Engine R&D, Electric
& Vehicle        Vehicle R&D, Materials Technologies R&D, Heavy Vehicle Systems R&D,
                 Fuels Utilization R&D, and the R&D-related or private sector related elements
Technologies
                 of Technology Utilization, with any government grants-related components
                 moved. OTT/Fuel Cells are moved to Hydrogen & Infrastructure.



Hydrogen &       Includes OTT/Fuel Cells, OPT/Hydrogen, DER/Fuel Cells and any
Infrastructure   other hydrogen system-specific R&D related work.




                                                                                                  12

                    Streamlined, Integrated, and Focused –

                          11 EERE Program Offices


Building               Includes Building Envelope and Systems, Appliances & Equipment,
Technologies           OPT/Solar/Zero Net Energy Buildings, and Energy Star.




                       Includes Weatherization, State, Community, and Tribal Grants
Weatherization &
                       Program, OPT/International, Clean Cities, and any other
Intergovernmental      government grants-related components of BTS, OIT, OTT, and
Grants                 OPT.



FEMP                   Includes Interior FEMP funding and E&W DEMP funding.




                                                                                         13

                                  Streamlined, Integrated, and Focused –
                                                11 EERE Program Offices
Solar                             Includes PV, CSP, and Low Temperature Solar Collectors (e.g. water heaters). Zero Net Energy
                                  Buildings activities moved to Building Technologies.

Wind & Hydropower                 Includes all Wind and Hydropower. Any other “fluid dynamics” related renewables work, such as
                                  ocean current, to be included here.

Geothermal                        Includes all Geothermal.


Distributed Energy, Electricity   Includes Distributed Energy Resources, Transmission Reliability, Energy Storage, and HTS, but
Infrastructure & Reliability      moves DER/Fuel Cells to Hydrogen & Infrastructure.

Biomass                           Includes OPT/Biopower, OTT/Biofuels, OIT/Black liquor gasification, OIT Agriculture, and black
                                  liquor from OIT/Forestry.

Industrial Technologies           Includes IOF Vision Industries (less OIT/Agriculture and the OIT/Forestry black liquor activity),
                                  IOF Crosscutting, OIT Industrial Technical Assistance, and the R&D-related or private sector-
                                  related elements of Financial Assistance. Government grant related activities are moved.

FreedomCAR & Vehicle              Includes Hybrid Systems R&D, Advanced Combustion Engine R&D, Electric Vehicle R&D,
Technologies                      Materials Technologies R&D, Heavy Vehicle Systems R&D, Fuels Utilization R&D, and the R&D-
                                  related or private sector related elements of Technology Utilization, with any government grants-
                                  related components moved. OTT/Fuel Cells are moved to Hydrogen & Infrastructure.

Hydrogen & Infrastructure         Includes OTT/Fuel Cells, OPT/Hydrogen, DER/Fuel Cells and any other hydrogen system-specific
                                  R&D related work.

Building Technologies             Includes Building Envelope and Systems, Appliances & Equipment, OPT/Solar/Zero Net Energy
                                  Buildings, and Energy Star.

Weatherization &                  Includes Weatherization, State, Community, and Tribal Grants Program, OPT/International, Clean
Intergovernmental Grants          Cities, and any other government grants-related components of BTS, OIT, OTT, and OPT.

FEMP                              Includes Interior FEMP funding and E&W DEMP funding.




                                                                                                                                      14