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EO 12637Executive OrderReagan · R Quiet signal

Executive Order 12637

Productivity improvement program for the Federal Government

This executive order establishes a government-wide program requiring all executive departments and agencies to improve productivity by 3 percent annually in functions that provide services to the public, with full coverage required by 1991. Agencies must submit annual productivity plans to OMB, include quality and timeliness goals in manager performance appraisals, and report progress through a structured review process.

53 FR 15349
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Impact dates

  1. All appropriate functions covered by productivity program

  2. Annual productivity plan submission to OMB

  3. Annual assessment of agency progress

  4. Annual report to President through Domestic Policy Council

  5. OMB report to Congress with President's budget

Key directives

  • Establish government-wide productivity improvement program with 3% annual average productivity increase goal
  • All appropriate functions covered by 1991
  • Agency heads develop complete inventory of appropriate functions
  • Annual productivity plans submitted to OMB with goals, priorities, efficiency methods, and measurement systems
  • Annual progress assessments with documented gains and cost savings
  • Designate senior official responsible for productivity program
  • Include productivity goals in performance appraisals of managers and supervisors
  • Annual reports to President through Domestic Policy Council
  • OMB develops policy guidance and reviews agency plans through management review
  • OMB submits annual report to Congress with President's budget
  • OPM reviews personnel policies, incentive programs, and displaced worker policies; develops training programs

Who is ordered

Timeline

Immediate

  • Executive Order 12552 superseded
  • Program formally established
  • Agency heads must designate senior official for productivity program

Near term (90d)

  • Agencies begin developing inventories of appropriate functions
  • OMB begins developing policy guidance under Section 5

Long term

  • Full coverage of all appropriate functions by 1991
  • Annual productivity plans and reports ongoing
  • Structural changes to personnel policies and incentive programs

Risks & tensions

  • 3% annual productivity target is ambitious and may conflict with service quality if poorly implemented
  • Vague definition of 'appropriate functions' creates implementation uncertainty across agencies
  • Cost comparisons with private sector (Sec. 3(b)(4)) could create outsourcing pressure and workforce tension
  • Minimizing 'negative impacts on employees' (Sec. 3(h)) while pursuing efficiency gains presents inherent tension
  • Domestic Policy Council role in annual reports (Sec. 4) adds political layer to what might otherwise be technocratic process
  • Supersession of EO 12552 suggests prior program perceived as inadequate; 1991 deadline implies urgency
Executive Order 12637: Productivity improvement program for the Federal Government · Executive Orders