FY14/15 Initial Planning & Budget Workshop

1. FY14/15 Initial Planning & Budget Workshop Carl Strawbridge/Cindy Conger October 19, 2012

2. Meeting Agenda

3. Meeting Outcomes for Today • Shared understanding of strategic priorities and the FY14+ planning environment • Agreement/update on FRA/FNAL Agenda Major Initiatives (today, still in draft) • Agreement on proposed B&R FY14/15 targets (today) • Initial draft Sector PEPs by mid-November to support DSC guidance (Thanksgiving) • Agreement on future workshop plan (today) • Action items (from the meeting)

4. Why are we here? • Nailing down the FY14 budget for PBR/Feb Budget Brief • Capturing the FY15 budget assumptions with HEP • Initiating movement toward a Lab/OHEP strategy-driven budget (vs. budget-driven strategy) • Introducing proposed planning framework, annual calendar and new Lab and Sector-level plans that lay foundation for integration of longer-term strategies into 3-year budget planning cycle • What is the FY14/FY15 Integrated Planning & Budgeting process: deliverables, outcomes, and planning milestones ?

5. Annual Planning & Budgeting Process

6. Annual Planning & Budget Process (cont.) • Synchronizes/integrates 5 year+ SC/HEP/FNAL strategic plans and 1-3 year budget plans • Moves toward forward-looking plans and earlier DOE sponsor/laboratory/community alignment • Add integrating management workshops (to avoid stovepipe-by-spreadsheet) by to get Sector/Lab-wide self-consistency in program prioritiesmanpower, funds and facilities/infrastructure needs • Supports downstream development of performance monitoring (PEMP) and reporting (ALP, Budget briefs, other financial)

7. Defining the Planning Frameworkfor FY2014/2015 • FRA/FNAL Agenda • Distills/Captures 5-7 year Lab strategies with major supporting initiatives • Captures Lab top-level plans that are deployed thru annual actions in Sector(D/S/C) Program Execution Plans • Update annually but should not change drastically • Communication tool with sponsors and staff (broad audience) throughout the year • Updated since August workshop, a number of changes • Does the current draft FRA/FNAL Agenda capture the right Strategies, Critical Outcomesand appropriate Major Initiatives? • Which initiatives should be the focus for FY14 Sector PEPs?FY15 and FY16? • In line with stakeholder thinking?

8. Draft FRA Agenda (Aug 2012)

9. Draft FRA Agenda (Oct 2012)

10. Sector Program Execution Plans • Cover 3 years (align w/ budget planning of CY +2) • Developed/updated annually by Sectors during Oct-Dec (thru gap analysis in projected resources and FRA-Agenda driven program) • Implement Initiatives/actions/milestones for top-level Lab initiatives and other important sector initiatives • Integrate funds, staff/skills and facilities & infrastructure requirements

11. PEP Contents (Mission-Area) • Sector strategies (CY+3, tie Sector to Lab-level (Agenda)) • For each of major (and other Sector) initiatives, identifies: • Vision/Goals • Objectives and Outcomes • Actions to achieve objectives/outcomes • Resources needed for actions: • Funds (labor $, M&S $) • Staff (FTE, skills—OHEP primary level) • Facilities & infrastructure (specific needs and readiness assessment) • Performance Monitoring Plan • KPI/Metrics • Assessment plan (risk-based)

12. Facilities & Infrastructure • What Sector (D/S/C) facilities and infrastructure needs require funding to meet FY2014 (and projected 2015 & 2016 program execution plans?) • Include operating projects > $25K (maintenance, repair & minor construction) plus GPP-level improvement projects • Include FESS-provided FIMS Facility Matrix spreadsheet • Where do new/upgraded networks get addressed?

13. Sector PEP Facilities Assessment • Are there any facility deficiencies or capability gaps that currently exist that prevent you from performing the mission? • Are there new programs coming that will require new facilities? • Could these new requirements be satisfied in existing facilities or will new facilities be required? • Are there efficiency gains or cost savings to be realized if facility improvements or modifications are made? • Are there major organizational changes that will affect the way in which existing facilities are used (changes in staffing or equipment)? • What facility improvements if implemented would allow for facility demolition or consolidations such that existing footprints are reduced? • Are there facilities that are no longer needed that could be repurposed to help meet another Sector’s facility requirements?

14. Mission-area Planning Process Gaps? • Coordination roles at Sector Offices with IPPM? • Is development of project labor budgets rigorous and realistic and looking out 3 years? • Reaching agreement between resource providers and projects efficiently • Is internal program management rigorous and looking out 3 years? • Roles of Overall and Technical POCs are not defined • Are there leadership weaknesses in critical programs? • How are cross-Sector program B&R efforts to be integrated?

15. PEP Contents(Mission Support) • Addresses Excellence in Operations, plus… • Meet support needs of Mission-Areas, so must iterate with them before next workshops • Integrates supporting plans from key resource areas (ESH&Q, PSS, WFDR, IPPM, other staff) • Basis for contract-required Annual HR Strategic Plan?

16. Mission-Support Thoughts • Does FRA/FNAL Agenda give sufficient focus to • Project management initiatives? • IT support priorities? • Accounting for transition of OPPS/OCBP/OPMO into ESH&Q, IPPM and PSS • Others?

17. B&R Proposed Targets FY14 & FY15 • See spreadsheet for starting points on FY14-15 • B&R-level agreement needed today, subject to approved changes prior to guidance release • Next steps: • Request project labor estimates (big-P and little-p projects) • Allow forward progress on organizational allocations within B&Rs in next month (ADs, COO) • Guidance out to DSCs by Thanksgiving

18. OHEP and Fermilab Program and Budget Climate, Constraints and Planning Assumptions for FY14 & FY15 • What are the high-level drivers affecting our planning, including sponsor needs and expectations? • What commitments (to HEP and others) are expected to be carried forward, which may be of lower priority? • What are the top Sector issues/concerns? (Sector Heads) • What budget set-asides should be considered for strategic initiatives? (Jack/Vicky) • What are the pressing facilities and infrastructure (including networks) needs?(Randy/Vicky)

19. Annual Lab Plan Update Should Capture Agreed Strategies, Outcomes, Initiatives • Call for ALP comes from DOE in January, plan due to DOE in May • Possible changes to Sec 4.1 from DOE optimizing Science Strategies for the Future? • FRA Agenda and Sector PEPs updated post-Feb can provide the inputs/basis for ALP • ALP Breakdown (IPPM to coordinate): • Mission, overview, Lab-at-a Glance (YKK, CFO, WFDR) • Lab Core Capabilities (YKK and ALDs) • Work For Others (CFO, ALDs) • Science Strategies for future/major initiatives (YKK/ALDs) • Mission Readiness (FESS) • HR (WFDR) • Cost of Doing Business (CFO/COO)

20. Future Management Workshops • Plan for future Management Workshops • Dec: • Schedule Mission Area Workshop (ALDs w/ YKK) • Follow with Mission-Support Workshop (COO) • Jan: • Schedule top-management workshop to resolve issues with integrated plans leading toward Feb budget briefs (plus other topics)

21. Summary, Q&A, Action Items, Next Meeting(s) • Meeting outcomes: • Shared understanding of strategic priorities and the FY14+ planning environment • Agreement/update on FRA/FNAL Agenda Major Initiatives (today, still in draft) • Agreement on proposed B&R FY14/15 targets (today) • Initial draft Sector PEPs by mid-November to support DSC guidance (Thanksgiving) • Agreement on future workshop plan (today) • Action items (from the meeting)