Chapter 1-Strategic Management System

Chapter 1—Strategic Management System

1.3 Implementation: Performance and Budget Planning

1.4 Performance Evaluation and Reporting

1.1	Overview
1.1.1	NASA consists of NASA Headquarters, nine Centers, the Jet Propulsion Laboratory (operated under contract to NASA by the California Institute of Technology), and several ancillary installations and offices in the United States and abroad. As a result of the Agency's decentralized operations, NASA's organization has evolved into a two-tiered structure of Agencywide management: (a) Agency management, including the Administrator, officials within the Office of the Administrator, and Functional Offices; and (b) Enterprise management, including Enterprise Associate Administrators and Center Directors. The implementation of NASA programs and aeronautical and space/Earth science and technology research occurs primarily at the Centers.
1.1.2	The success of NASA's missions relies in part on the Agency's four Úquot;Crosscutting Processes.Úquot; These processes are the way we perform our mission. All activity within NASA is contained within one or more of these four processes: provide aerospace products and capabilities, generate knowledge, communicate knowledge, and manage strategically. Policies and procedural guidelines governing these Crosscutting Processes will be found in their respective NPD's and NPG's.
1.1.3	NASA's strategic management system is a set of ongoing and interlinked activities that includes strategic planning, implementation performance planning, and performance evaluation. As shown in Figures 11 and 12, these activities enable the Agency to make decisions about its long-term goals, near-term activities, and institutional capabilities that are consistent with achieving the mission and objectives to which it commits itself in its Strategic Plan.
1.2	Strategic Planning
	Strategic Planning establishes the direction for all Agency efforts and forms the basis for strategic and tactical decisionmaking, resource allocation, and capital investment. It does so in the context of the Agency's vision, mission, goals, objectives, values, and policies, as well as external and internal environments. The Strategic Planning process requires alignment among NASA's Strategic Plan, the Enterprise Strategic Plans, programs, and institutional capabilities (see Figure 12). Figure 1-1. Strategic Management System
1.3	Implementation: Performance and Budget Planning
	The implementation planning process produces annual budget formulation guidance and performance plans to achieve the goals and objectives identified during the Strategic Planning process. It is a cyclical process that is ongoing throughout the development of NASA's Strategic Plan and Enterprise Strategic Plans, capital investment plans, and Agency budgets and forms the basis for performance evaluation.
1.4	Performance Evaluation and Reporting
	NASA's progress in achieving the objectives of its Strategic Plan is routinely evaluated by both internal and external organizations. The Government Performance and Results Act (GPRA) of 1993) requires Federal agencies to submit annual performance plans following the transmittal to Congress of the President's budget. NASA's performance report will reflect the performance goals against which the Agency expects its effectiveness to be measured in any given fiscal year. Figure 1-2. Strategic Management Elements
1.4.1	Because investments in research and development can yield results 5, 10, and 20 years in the future, NASA's annual performance measures must incorporate measures of both output and outcome, addressing a longer term view than fiscal year by fiscal year. NASA will continue to rely on its internal management councils, its advisory committees, and the National Research Council for assistance in evaluating its performance over extended periods of time.
1.4.2	The performance evaluation process allows NASA to identify potential opportunities for improvement in program execution and process management and to ensure safety and health, efficiency, and effectiveness. Performance evaluation can also yield information that may indicate a need to change the Agency's long-term strategies or near-term objectives. NASA will report publicly on the results of its performance evaluations to the Administration and Congress in an annual performance report.