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Business Transformation at USAID

"The most fundamental changes in national security policy since the beginning of the Cold War are occurring. And President Bush has been emphatic that development will play a central role. This is, then, a turning point for USAID as it is for the country as a whole. To remain effective, the Agency must enhance its business systems and processes. I have made management reform one of my highest priorities so that this Agency can meet the challenges of the new era." – Andrew S. Natsios, Administrator U.S. Agency for International Development

During fiscal year (FY) 2005, USAID made substantial progress in meeting the goals of its business transformation – a multi-year, multi-step plan to reform the Agency's management systems and improve organizational performance. The plan has been designed to address the President's Management Agenda (PMA), the Administrator's Management Reform Principles, and the Management and Organizational Excellence strategic and performance goals of the Joint State-USAID Strategic Plan.

The Agency's Business Transformation Executive Committee (BTEC) meets monthly to review progress, set priorities, and make decisions regarding the initiatives associated with the major components of USAID's business transformation plan. The BTEC, composed of senior career executives across the Agency, is based on the recognized "best practice" that successful, large-scale transformation requires active collaboration, shared ownership, and accountability across an organization's entire top leadership team.

USAID's Business Transformation Plan is an integrated and coordinated plan with mutually reinforcing performance goals organized around four focus areas that describe how the Agency is applying its most important assets—its people, its ideas, and its technology—to improve its results in development and humanitarian initiatives around the world. The plan, which directly supports the goals of the PMA, is composed of the following four components: Strategic Management of Human Capital, Business Systems Modernization, Knowledge for Development, and Strategic Budgeting.

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