AID Management

Strategic Management Can Help AID Face Current and Future Challenges Gao ID: NSIAD-92-100 March 6, 1992

From the breakup of the Warsaw Pact to the formation of the Commonwealth of Independent States, the United States confronts increasing demands for economic assistance. The Agency for International Development (AID) is the lead agency for U.S. bilateral economic assistance. This report discusses AID's current efforts to introduce strategic management and compares them to a model for strategic management that GAO developed for use in other agencies. It also describes some of the persistent management problems and future challenges facing AID. Despite its efforts, AID still lacks a clearly articulated strategic direction shared by key internal and external groups. GAO concludes that establishing and following a strategic management process should enable AID to develop an agencywide direction, select effective management strategies and address critical issues, and assign accountability and monitor feedback.

GAO found that AID: (1) has no clear priorities or meaningful direction because of significant and recurring management problems in its operations; (2) operations emphasized project design and obligation of funds more than program effectiveness and results, due partly to a budget cycle in which most funds are returned to the Treasury if not obligated in the year appropriated; (3) does not have a work force that reflects its current needs or a work-force planning system; (4) lacks an adequate financial and information resource management system; and (5) has not clearly defined responsibilities, and various AID headquarters offices perform redundant activities. GAO also found that: (1) AID has taken such steps to introduce strategic management as assigning management groups to tackle major weaknesses, and strengthening its evaluation resources and mission to better access and communicate program and management successes and shortcomings and provide meaningful feedback; and (2) despite those efforts, AID still lacks a clearly articulated strategic direction shared by key internal and external groups.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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