PPA 573 – Emergency
Management and Homeland
Security
Lecture 8b - Agency merger and
managerial flexibility in the Department of
Homeland Security.
Introduction
 On June 6, 2002, President George W. Bush
proposed the creation of the Department of
Homeland Security (USDHS) as a new
Cabinet department.
 After more than five months of debate and
controversy, President Bush signed the
Homeland Security Act on November 25,
2002.
Introduction
 Mission of DHS:
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Prevent terrorist attacks within the United
States.
Reduce America’s vulnerability to terrorism.
Minimize the damage and recover from
attacks that do occur.
Introduction
 The freedom to manage revolves around five central issues of
presidential management.
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To what degree is effective leadership critical to the creation and
implementation of DHS?
To what degree should homeland security functions be centralized in a
single agency in the national government or decentralized to state,
local, nonprofit, and private organizations?
To what degree does effective implementation require networking and
coordination with governmental and nongovernmental partners?
To what extent are the missions of the combined organizations
compatible with one another and the overall mission of DHS?
To what degree should the senior officials in DHS have the capacity to
“get the right people in the right place at the right time with the right
pay?”
Critical Issues in Homeland Security
 Four critical issues.
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The development of a national strategy for
homeland security.
The use of risk assessment.
The creation of a central leadership.
The development of networking and
coordination.
Critical Issues in Homeland Security
 1. The development of a national strategy for
homeland security.

The Bush administration published the first national
strategy in July 2002.
 A concerted national effort to prevent terrorist attacks
within the United States, reduce vulnerability to
terrorism, and minimize the damage and recover from
attacks that do occur.
 Five major functions.
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Intelligence and warning.
Perimeter defense.
Domestic prevention.
Protection of significant national assets.
Consequence management.
Critical Issues in Homeland Security
 2. The use of risk assessment.
 No homeland security strategy is comprehensive
enough to identify all threats and protect all potential
targets.
 Any attempt to achieve total security will not only fail,
but will undermine other critical values such as civil
rights and liberties.
 The ultimate goal is the identification of practical and
feasible homeland security strategies that focus on the
identification and protection of critical assets.
 The primary tools is risk management.
 Threat assessment.
 Vulnerability assessment.
 Criticality assessment.
Critical Issues in Homeland Security
 3. The lack of central leadership.
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Most assessments prior to DHS criticized the
lack of central leadership.
But, homeland security is a decentralized
activity whose success depends on the
coordinated actions of dozens of organizations
and hundreds of individuals.
Terrorists are strategic actors, so counterterrorism must be strategic, which usually
means some decentralization.
Critical Issues in Homeland Security
 The intergovernmental and coordinative
nature of homeland security.

Each of the five functions of the national
strategy require some input or deliberate
action by state agencies, first responders,
nonprofit organizations, or the public.
Strategic Management in Homeland
Security
 The overall success of the homeland security
strategy will necessitate the application of a
strategic management approach to any new
organization created to oversee homeland
security policy.
Strategic Management in Homeland
Security
 The USGAO has identified several elements critical to the
implementation of new organizations.
 Strategic planning.
 Organizational alignment.
 Communications.
 Building partnerships.
 Performance management.
 Human capital strategy.
 Information management and technology.
 Knowledge management.
 Financial management.
 Acquisition management.
 Risk management.
 Change management.
Implementation of the Department of
Homeland Security
 The central strategy adopted by the Bush
Administration to achieve the goals of
homeland security and implement the
national strategy is the Department of
Homeland Security.
Implementation of the Department of
Homeland Security
Figure . Organization of the Department of Homeland Security
Source: Department of Homeland Security Web Site: www.dhs.gov.
Implementation of the Department of
Homeland Security
 The new agency combined twenty-two
different programs from nine Cabinet
departments and independent agencies. The
agency contained 170,000 employees prior to
the hiring of 30,000 to 40,000 transportation
screeners by TSA.
Implementation of the Department of
Homeland Security
Table 1. DHS Organizational Elements Identified by USGAO.
Element
Directorate for
Information Analysis
and Infrastructure
Protection
Mission
Analyze law enforcement and intelligence information
from federal, state, an d local government agencies, and
private sector entities to identify and assess threats and
vulnerabilities, and identify priorities for protective and
support measures. Develop a comprehensive national
plan for securing key resources and critical infrastructure.
Administer the Homeland Security Advisory System.
Directorate of Science
and Technology
Develop a national policy and strategic plan to identify
and develop countermeasures for chemical, biological,
radiological, nuclear, and other terrorist threats. Assess
and test vulnerabilities and possible threats. Conduct basic
and applied research and related activities.
Directorate of Border
and Transportation
Security
Directorate of
Emergency
Preparedness and
Response
Major agencies included
National Infrastructure Protection Center (FBI)
National Communications System (Defense)
Critical Infrastructure Assurance Office (Commerce)
National Infrastructure Simulation and Analysis Center
(Energy)
Federal Computer Incident Response Center (GSA)
National Bio-weapons Defense Analysis Center
(Defense)
Plum Island Animal Disease Center (USDA)
Chemical and biological national security
nonproliferation program, nuclear proliferation
programs, and nuclear assessment programs (Energy)
Environmental Measurements Laboratory (Energy)
Advanced scientific computing research programs and
activities (Energy)
Prevent entry of terrorists and terrorist instruments.
Customs Service (Treasury)
Secure the borders, waters, ports, terminals, waterways
Transportation Security Administration (Transportation)
and air, land, and sea transportation systems. Carry out
Federal Protective Service (GSA)
immigration enforcement functions and provide
Federal Law Enforcement Training Center (Treasury)
citizenship and immigration services. Establish and
Office for Domestic Preparedness (Justice)
administer rules governing visas or other forms of entry.
Immigration and Naturalization Service (Justice)
Ensure effectiveness of emergency response providers to
Federal Emergency Management Agency
terrorist attacks, major disasters, and other emergencies.
Integrated Hazard Information System
Provide the federal response to terrorist attacks and major
National Oceanic and Atmospheric Administration
disasters and aid in the recovery. Build a national
National Domestic Preparedness Office (FBI)
incident management system. Develop a national
Domestic Emergency Support Teams (Justice)
response plan.
Emergency preparedness, national disaster, and medical
response systems (HHS)
Strategic National Stockpile (HHS)
These entities are transferred intact and report directly to the DHS Secretary. They retain their current missions.
Coast Guard
Secret Service
Source: USGAO 2002g, 22
Implementation of the Department of
Homeland Security
 The framework in Table 1 clearly suggests that the
Bush Administration intends to implement DHS using
a strategic management focus.
 But, six critical areas remain that may complicate the
successful implementation of DHS.
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Effective leadership.
Networking and coordination.
Mission compatibility.
Managerial flexibility.
Information management.
Acquisition management.
 The first four are examined here.
Implementation: Effective Leadership
 The impulse to centralization is apparent in the Homeland
Security Act of 2002 and the 9/11 Commission
recommendations.
 The urge to consolidate increases accountability to the
President, simplifies communications in some ways,
improves implementation by putting similar functions under a
single structure, and grants statutory and budget authority to
a single agency.
 The Act gives DHS considerable powers.
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The Act centralizes all management functions under the
Undersecretary for Management.
Creates management team with Chief Financial Officer, Chief
Information Officer, Chief Human Capital Officer.
Authorizes DHS and OPM to create a flexible and
contemporary human resource management system.
 Draft regulations issued February 25, 2004.
Implementation: Effective Leadership
 The Act and agency confront two critical problems
that make coordination and catalytic leadership skills
critical.
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Over 100 agencies had homeland security functions;
only 22 were combined in DHS. The other activities
must be coordinated.
Most of the functions of homeland security are carried
out by state and local governments, nonprofit
organizations, and private organizations.
 Homeland security is an ill-structured problem with
competing problem definitions
 Centralized leadership tends not to be effective.
 Catalytic leadership is more effective but also more
time-consuming.
Implementation: Networking and
Coordination
 Complicating the leadership problem is the
high demand for networking and coordination
required by DHS.
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87,000 governments governed by 500,000
elected officials.
Advantages of dispersed expertise, but
disadvantages of fragmented response and
duplicative effort.
Private sector owns 75% of critical
infrastructure.
Implementation: Networking and
Coordination
 National strategy provides some
recommendations for coordination, but much
of the infrastructure for the coordination
remains to be developed.
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First responders, proprietary information,
corporate liability.
Implementation: Successful Reorganization
and Mission Compatibility.
 Critical factors for successful reorganization.
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Integrated approach.
Specific, identifiable goals.
Appropriate vehicle for accomplishing the
goals.
Successful implementation.
Oversight.
Implementation: Successful Reorganization
and Mission Compatibility.
 Critical factors in homeland security reorganization.
 A national homeland security strategy that identifies
and integrates critical functions.
 A well-defined homeland security mission with
measurable outcomes.
 A well-thought-out discussion of the appropriate
organizational structure.
 Implementation with committed leadership, key
principles, implementation goals and timelines,
implementation team, performance management
system, communication system, and employee
involvement.
 Oversight by agency leadership.
Implementation: Successful Reorganization
and Mission Compatibility.
Table 1. Significant Non-Homeland Security Functions in DHS Component Agencies
Agency
Federal Emergency Management Agency
U.S. Coast Guard
Immigration and Naturalization Service
U.S. Customs Service
U.S. Secret Service
Animal and Health Inspection Service
HHS CBRN programs
Lawrence Livermore and Environmental
Measurements Laboratories
Federal Protective Service
Transportation Security Administration
Federal Law Enforcement Training Center
Office of Domestic Preparedness
Nuclear Incident Response Team
Domestic emergency support teams
National Domestic Preparedness Office
Energy CBRN Countermeasures Programs
National Biowarfare Defense Analysis Center
Critical Infrastructure Assurance Office
Federal Computer Incident Response Center
National Communications System
National Infrastructure Protection Center
National Infrastructure Simulation and Analysis
Center and Energy Security and Assurance Program
Source: Authors’ Analysis and USGAO 2002e
Non-homeland security functions
Mitigation, preparedness, response,
and recovery to natural disasters
Maritime safety and drug interdiction
Citizenship and immigration services
Collection of commercial tariffs
Counterfeiting and presidential
protection
Agricultural inspection
Public health research
Advanced energy and environmental
research
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
None or limited
Degree of incompatibility to
homeland security
High
High
High
High
Moderate
Moderate
Moderate
Moderate
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Implementation: Successful Reorganization
and Mission Compatibility.
 The agencies with the most critical
incompatibility problems.
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FEMA, Coast Guard, INS, Customs.
Secret Service, Animal and Health Inspection
Service, HHS CBRN programs, National Labs.
 The general problem: Agency consolidation
uses critical resources. GAO argues that the
typical consolidation reduces effectiveness for
5 to 7 years. Larger consolidations take
longer. DoD has taken 39 years.
Implementation: Managerial
Flexibility
 Problems in federal organization requiring
more managerial flexibility.
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Insufficient workforce capacity.
Ineffective management.
Lack of a results-oriented culture.
Implementation: Managerial
Flexibility
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Flexibilities actually used in new regulations.
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* Pay and performance management. Broad pay bands would replace the 15-grade
General Schedule (GS) system in place since 1949 in much of the federal civil service.
Ten to 15 occupational pay clusters of similar jobs types would include four pay bands
ranging from entry level to supervisor. The GAO recommended that the DHS use
validated core competencies as a key part of evaluating individual contributions to
departmental results. “The bottom line for additional performance-based pay flexibility,”
said the GAO, “is that an agency should have to demonstrate that it has a modern,
effective, credible and, as appropriate, validated performance management system in
place with adequate safeguards.”
* Adverse actions and appeals. Employees would be encouraged to use alternative
dispute resolution (ADR) programs to resolve appeals. However, the process to identify
mandatory-removal offenses must be collaborative and transparent, under the planned
system. The GAO report warned the DHS to be cautious about defining specific actions
requiring employee removal and to learn from the Internal Revenue Service’s (IRS)
implementation of its mandatory-removal provisions. According to the GAO, IRS
officials believed that these provisions had a negative impact on employee morale and
effectiveness and had “a ‘chilling’ effect on IRS frontline enforcement employees who
are afraid to take certain appropriate enforcement actions.”
* Labor relations. The proposed regulations recognize employees’ right to organize
and bargain collectively but reduce the areas subject to bargaining. It is critical to
involve employees continually in a meaningful manner, the GAO advised.
Implementation: Summary
 The Bush administration has provided the
agency with a range of tools to maximize the
exercise of effective leadership.
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But, the nature of homeland security may
require catalytic leadership.
 The intergovernmental and
interorganizational reality of homeland
security will place a premium on networking.
The networks do not exist.
Implementation: Summary
 The numerous non-homeland security
functions may be compromised despite
statutory requirements.
 Managerial flexibility may give the agency
needed leverage, but at the risk of political
controversy.
Findings
 1a: The nature of the terrorist threat will
require an agency and a centralized
leadership that will allow quick decisions and
flexible response.
 1b: The intergovernmental and
interorganizational structure of the homeland
security system will require catalytic
leadership that is collaborative, deliberative,
and consensual.
Findings
 2. The current system provides insufficient
incentives for the development of publicprivate partnerships.
 3. DHS contains significant non-homeland
security functions especially in Customs,
FEMA, INS, and Coast Guard.
 4. The new agency contains several agencies
with severe managerial problems identified by
USGAO.
Findings
 5. The managerial flexibilities granted in the
Homeland Security Act will allow the
Department to create a more flexible human
resource system over the next five years.
 6. The exercise of personnel flexibilities by
the Department will be subject to political
controversy and may lead to decreased
productivity and morale.
Recommendations
 1. The Secretary of Homeland Security
should develop a strategic plan for the
Department with the collaboration of the key
homeland security stakeholders.
 2. Strategic human capital management
should be a critical component of this plan.
 3a. In the short term, the human capital plan
should focus on the personnel flexibilities
currently available under federal law,
including those added in the Homeland
Security Act.
Recommendations
 3b. Other personnel flexibilities should only
be pursued with the consultation with
employee representatives required under the
Act.
 3c. The President and the Secretary of
Homeland Security should not use the
national security provisions of Title V to
decertify the existing public sector unions in
DHS.
Recommendations
 4. DHS should accelerate the identification of
critical infrastructure and the development of
the corresponding public-private partnerships.
 5. The DHS strategic plan will need to
explicitly identify non-homeland security
functions and outcomes and provided
adequate mechanisms and resources to
assure continued high levels of performance.
 6. DHS should prepare for homeland security
failures within the next five years.