Deloitte: Agency Reorganization Planning Being Driven By Funding Constraints

By Rob Starr, Content Manager, Big4.com

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

Despite the challenges that complicate reorganization, focus group participants still consider it worthwhile. Recommendations include having a well-developed plan and communicating it clearly and effectively to stakeholders, and facilitating effective oversight and monitoring throughout the entire process.

The report, “Tidying up: What reorganization can do for federal agencies,” assesses the perceptions, attitudes and experiences of federal employees regarding potential department-, agency-, and program-level reorganizations and consolidations. The study is based on focus group and survey data collected from senior-level federal employees from the GS/GM level 11.

John Powers, principal, and global merger and acquisition consulting services leader, Deloitte Consulting LLP commented:

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