Several factors determine what NASA does, for whom, and why. The National Aeronautics and Space Act of 1958 and its Amendments define the Agency's overarching charter and mission. In addition, the Administration and Congress provide specific guidance through statutes, policies, and directives to accomplish this mission. The Agency's external customers also provide NASA with its requirements. In turn, NASA establishes goals, objectives, and implementing strategies to accommodate these policies and directives and meet the needs of external customers.

Figure 4-1. NASA's Strategic Plan Development Process

4.1 Requirements of the Government Performance and Results Act of 1993
The stated purpose of the Government Performance and Results Act (GPRA) is to improve performance by requiring Federal agencies to implement longer term Strategic Planning activities to effectively measure program outcomes and to systematically hold them accountable for achieving program results. Program performance reform is initiated with a series of pilot projects. These projects set program goals, measure program performance against those goals, and report publicly on their progress. GPRA assists Federal managers in improving service delivery by providing new focus on results, service quality, and customer satisfaction. GPRA requires Federal agencies (including NASA) to accomplish the following:

• Develop a 5-year Strategic Plan, setting forth NASA's mission, long-term goals, and associated resource requirements. Initial submission to the Office of Management and Budget (OMB) and Congress is September 30, 1997, with updates at least every 3 years.
• Prepare annual Performance Plans that establish performance goals, measurable objectives, and associated resource requirements required to achieve long-term goals. The initial plan, for fiscal year 1999, is to be submitted to OMB by September 1997. As part of these Performance Plans, agencies may request that OMB grant managerial waivers on personnel levels, salaries, and budget constraints for programs indicating improved performance within program funding.
• Submit annual Performance Reports that will measure goal achievement and/or identify reasons for failure in goal achievement. The initial report is to be submitted to the President and Congress by March 31, 2000.

4.2 NASA Strategic Plan and Enterprise Strategic Planning Requirements
To ensure consistency and to meet GPRA requirements, all Strategic Plans — the NASA Strategic Plan and the Enterprise Plans — should include the following elements:

• Vision. NASA must have a single shared vision to communicate the common theme for the future of the Nation's aeronautics and space program. This vision is a clear and concise statement that defines the ideal future state of the organization and the programs it implements. The vision describes the successful outcomes of the Agency's long-term activities and the values gained by its many customers and ultimate beneficiary — the public.
• Mission Statement. This statement summarizes the accomplishments of the organization in fulfilling its vision, its main purpose for existing, and the basic social or political needs that are to be met. The mission statement addresses the unique products and services that the organization delivers to its customers.
• Identification and Description of External Customers. Customers are individuals, groups, or organizations that rely on the products and services delivered to achieve their own goals and objectives.
• Assessment of the External and Internal Environment. These assessments include the identification of factors and issues external to the organization, both opportunities and threats, that may be beyond its control and could significantly affect the achievement of general goals and objectives, as well as key assumptions used in developing strategy.
• Goals, Objectives, and Implementing Strategies. Goals elaborate on the mission statement and constitute a specific set of policy, programmatic, or management outcomes for the programs and operations covered in the Strategic Plan. Goals serve the purpose of further defining the organization's direction, by addressing the critical issues identified during the external assessment. Goals need not be in a quantitative or measurable form, but they must be expressed in a manner that allows a future assessment of whether each is being achieved. As goals are developed, the following questions should be considered:

  1. Does the goal address a critical issue confronting NASA?
  2. Does the goal chart a clear course for NASA?
  3. Is the goal congruent with NASA's mission and mandates, and is the guidance provided by the Administration and Congress?
  4. Is the goal in conflict with any other goals?
  5. Does the goal reflect the primary activities and direction of NASA?
  6. Is the goal challenging, realistic, and achievable?

  
  Objectives are specific milestones and target levels of near-term outputs that are to be achieved during strategic implementation. Each objective should relate to a particular goal. As a general rule, most objectives should meet the following criteria:

  1. Specific — Objectives should be results oriented and reflect the accomplishments to be achieved, but they do not outline the specific implementation steps. They must be specific enough to     provide clear direction and be understood by both internal "implementers" and external customers.

  2. Measurable — Objectives must be either quantifiable ("The percentage of Task A completed on time will be increased from 65 percent to 80 percent") or verifiable ("A study will be completed by September 30, 2000"). NASA must be able to monitor its success in achieving each objective.

  3. Aggressive, but attainable — Objectives must be challenging, while at the same time attainable. Realism must be imposed in deciding targets.

  4. Results-oriented — Objectives must focus on desired outputs and outcomes, not on the methods used to achieve the target.

  5. Time-bound — Because objectives serve as milestones for monitoring progress toward a goal, it is imperative that accomplishment be achieved within a specific timeframe. The chosen timeframe should be reasonable, yet aggressive. Wherever possible, interim milestones should be established so that NASA or the Strategic Enterprise may review the progress and the effectiveness of its methods.

  Implementing strategies should include a description of how the goals and objectives will be achieved, as well as a summary of human, capital, information, and other resources, systems, processes, and technologies that are critical to achieving established goals and objectives. Each strategy should have the following:

  1. A description of the key elements, programs, and/or processes that meets the following criteria:
     - At the Agency level, this description should include NASA's Strategic Enterprises and Crosscutting Processes and address their customer requirements, goals, objectives, and; implementation strategies.
     - At the Enterprise level, this description should include major programs, processes, or functions and their customer requirements, goals, objectives, implementing strategies, and resource requirements.
  2. Values that form the basic tenets for the culture and operational approach of the organization.
  3. A description of the program evaluation process.
  4. An indication of how program evaluations are to be used in establishing or revising goals, as well as a schedule for future evaluation.

In addition to the above requirements, the NASA Strategic Plan and the Enterprise Plans should include a one-page "Strategic Roadmap." This roadmap must be based on NASA's mission statement and delineate the near- (7 years), mid- (8 to 14 years), and long-term (15 to 25 years) goals for the Agency and Strategic Enterprises.

4.2.1 NASA Strategic Plan
The NASA Strategic Plan provides the Agency's top-level strategy. It articulates what NASA does, who its customers are, where the Agency is going, and how it will get there. The NASA Strategic Plan provides strategic direction for all elements and individuals comprising the organization. It also provides a mechanism to communicate to external stakeholders and customers that the Agency is responding to their requirements.

The Senior Management Council annually reviews and updates the Strategic Plan. It is finalized in February of each year to ensure consistency with the President's budget. Strategic Planning is a continuous process, with development beginning in March, following the completion of the prior year's Strategic Plan. The process begins with a review of the external and internal environment to reaffirm or identify potential issues that may effect NASA and its programs.

Using the previous Strategic Plan and the environmental data as a starting point, the Senior Management Council holds a series of strategic management retreats to assess and revalidate NASA's mission, goals, objectives, strategies, key assumptions, and performance indicators. Members of the Administrator's staff, the Associate Administrators, and the Center Directors participate in these retreats. As required by GPRA, NASA will submit its Strategic Plan, with its annual GPRA Performance Plan and 5-year budget, to OMB and Congress in September of each year.

4.2.2 Enterprise Strategic Plans
The Enterprise Strategic Plans flow down from, and must align with, NASA's Strategic Plan. These Plans are reviewed and, as required, updated annually. Planning begins in March with a review of the external and internal environment, including an assessment of customer requirements, to reaffirm or identify issues that may affect the Enterprise and its programs.

Using the previous Strategic Plan, NASA's Program Operating Plan guidance, and the environmental data as a starting point, a series of planning sessions are held to assess and revalidate the Enterprise mission, goals, objectives, strategies, key assumptions, and performance indicators. To allow for a full exchange of views, the sessions should include representatives from the Centers, the other Enterprises, and the Functional/Staff Offices that either contribute to or receive products and services from that particular Enterprise. The Enterprise Strategic Plans are finalized within 2 weeks of the completion of NASA's Strategic Plan and form the foundation for the development of the Enterprise Associate Administrator's Performance Plan and the Enterprise's annual budget.

The Enterprise Strategic Plans must address the elements defined above in section 4.2. They must elaborate on their respective mission and goals, as presented in NASA's Strategic Plan, by providing detailed objectives, implementing strategies, and a description of the key elements, programs, and/or processes. These Plans must be developed by the respective Enterprise management, reviewed by the Office of Policy and Plans for consistency with NASA's Strategic Plan and other Enterprise Plans, signed by the Enterprise Associate Administrators (at a minimum), and approved by the Administrator.

4.3 Capital Investment Planning
NASA has established an Agencywide capital investment planning process because the size, scope, time horizon, and technical nature of these investments are critical to long-term Agency viability. In addition, such investments must be balanced across NASA organizations and prioritized on an Agencywide basis, consistent with external financial constraints and partnership opportunities.

NASA's Capital Investment Council provides recommendations to the Administrator as a key element of the Agency Program Operating Plan guidance at the beginning of the Implementation Planning process and during the budget development process. The council meets as often as the chair deems appropriate. The meetings must focus on key Agencywide issues, such as information technology, human resources, technical capabilities, high-risk and generic technologies, or facilities, but they should also include cross-investment area integration.

The Capital Investment Council ensures the integration of Enterprise, Center of Excellence, and other investment plans; it also prioritizes planned investments and recommends guidance to NASA entities for subsequent implementation. The council focuses on other key analyses, such as major Agency-level downsizing or restructuring.

The Capital Investment Council establishes supporting panels for particular investment areas. These panels review Agency policies and Implementation Plans and develop materials and analyses to support council deliberations. The panel leaders develop or coordinate a complete analysis of the designated investment area for presentation to the Capital Investment Council. Such analyses include the following:

• A description of NASA requirements based on missions, including linkage to NASA, the Enterprise Strategic Plans, and the Center Implementation Plans;
• A prioritized list of requirements, including time phasing;
• A description of existing and in-process NASA capabilities, including condition and inputs from appropriate ongoing functional assessment activities;
• A description of related Federal, academic, industry, and other capabilities, including partnering potential;
• An evaluation of requirements and capabilities, including partnering and funding profiles;
• An investment strategy for the designated investment area, with proposed guidance for the implementing Strategic Enterprises, the Centers of Excellence, functions, and other elements of the organization; and
• As appropriate, a prioritized list of capital investment initiatives/opportunities, with related cost, schedule, and performance metrics.

The Capital Investment Council reviews the panel's analysis and recommends Agency policy and investment strategy. These deliberations integrate multiple investment area opportunities and strategies. As such, updated investment strategies in other investment areas may be required, as well as regular integration of available budget information. In this context, the Executive Secretary to the Capital Investment Council or other designated individuals may be required to develop cross-area evaluations.

4.3.1 Investment Area Panel Leadership
The following assignments indicate the initial investment area designations. A meeting schedule must be provided that allows for appropriate integration with the annual budget cycle.

Investment Area Designated Panel Leader Information Systems Chief Information Officer Facilities (including environmental remediation and cleanup)   Associate Administrator for Management Systems and Facilities Technology Chief Technologist Human Resources Associate Administrator for Human Resources and Education Science Chief Scientist Space Operations Associate Deputy Administrator (Technical)

4.3.2 Documentation of NASA's Capital Investment Decisions
To ensure that the capital investment decisions approved by the Administrator are documented and used to formulate Agency Program Operating Plan guidance, the following information will be provided in the Capital Investment Council's meeting reports:

• Statement of issues addressed, options considered, and recommendations submitted to the Administrator; and
• Investment decisions and strategies:
  - A prioritized list of capital investment initiatives/opportunities, with related cost, schedule, and performance metrics
  - An investment strategy for the designated investment area, with related proposed guidance for the implementing Strategic Enterprises, Centers of Excellence, functions, and other elements of the        organization.

4.4  5-Year Budget Planning
NASA's budget planning is an ongoing process that incorporates a detailed analysis of current requirements with outyear projections of funding needs. Each budget cycle is initiated by guidance from OMB that provides planning estimates, as well as policy guidance for the preparation of the Agency's budget request. This broad guidance uses the 5-year runout of the President's budget request for NASA before Congress at the time, and it updates the totals for further economic policy or program decisions that may have been made.

Agency guidance concerning allocations among the Strategic Enterprises, priorities for decisionmaking and tradeoffs, and any broad strategy issues is developed to initiate both the internal planning and budget processes. The Administrator issues this guidance, with full participation and advice of the Capital Investment Council, through the Agency Chief Financial Officer and Comptroller. The Chief Financial Officer and Comptroller then provide more detailed programmatic and funding guidance to the Strategic Enterprises. The multiyear budget estimates, program assumptions, and strategic direction provided to each Enterprise establish a baseline for the planning and budget formulation activities and are further distributed as guidelines to the NASA Centers.

As the budget formulation process proceeds, decisions must be made regarding activities that can be afforded within the projected available funds. Each Strategic Enterprise must justify the relevance of the programs for which funding is requested in the NASA and Enterprise Strategic Plans. New initiative candidates proposed by the Enterprise must be accommodated within the Agency funding guidelines and handled on a relative priority basis.

The final budget request transmitted to OMB reflects this decision process for the entire Agency. The Strategic Plan and budget process will be fully compatible. The content of the budget request describes the way in which the Administrator plans to achieve progress toward meeting the goals and objectives that appear in the NASA Strategic Plan within the multiyear funding allowance available. The Administrator approves the final 5-year budget submittal.