Strategic Objective 1.2: Utilize AOC Resources Efficiently

AOC’s strategies for this objective include:

• Expanding the adoption of best practices where beneficial.

• Streamlining AOC internal operations for enhanced efficiency and effectiveness.

• Maximizing the effectiveness of financial information in the decision making process.

Discussion: In FY 2014, AOC continued focusing on streamlining internal operations for enhanced efficiency and effectiveness. In particular, AOC evaluated the feasibility of implementing a consolidated AOC inventory and warehousing center. The effort would achieve cost savings while maintaining an acceptable level of service, standardizing accounting and inventory control practices, increasing transparency and reducing AOC’s inventory and warehouse footprint. In late FY 2014, the strategy team presented final recommendations to the Executive Leadership Team and prepared for taking next steps in FY 2015.

Additionally, during FY 2014, AOC continued to make progress in its efforts to achieve significant efficiencies through cost savings initiatives. Key savings accomplishments are highlighted in Table 19 as part of the sidebar, In Focus: Working Leaner for the American Taxpayer, on page 65. These savings were made possible through contract re-negotiation, overtime management, technology expansion, energy and water consumption reduction measures, and the use of fewer outside contractors.

AOC tracks performance on this objective through indicators that monitor operational processes and labor requirements. Enhanced efficiencies and improved effectiveness is expected to manifest itself in reduced processing times and fewer labor hours—specifically overtime labor hours.

TABLE 15: Performance Indicator— Adherence to Hiring Cycle Time, See Full Report, Page 63

TABLE 16: Hiring Cycle Times, See Full Report, Page 63

In a tight budget environment, use of available management tools such as improved project planning, restructuring work shifts and establishing overtime budgets can help control overtime costs.

The Adherence to Hiring Cycle Time indicator provides a quantifiable measure of efficiency for two processes: recruiting actions and direct hires. The average number of days required to fill a vacancy (from the moment the jurisdiction places a formal request in the system to the time a new employee begins work) is an indicator of AOC’s ability to function at full capacity. The longer positions remain vacant, the greater the impact to the agency’s performance. Table 15 provides the FY 2014 overview for this performance indicator.

AOC staff brought new employees on board within the target cycle time assigned to each process, thus meeting this objective in FY 2014. Table 16 and Figure 39 provide the six-year trend data for this indicator. The data represent the days elapsed from the date in which the request to fill a vacancy is placed in the system to the date the new employee comes on board.

AOC continues to meet this target thanks to the combined efforts of hiring managers and the Human Capital Management Division (HCMD) staff. HCMD has been immersed in a radical change in automation tools that