We have been a reader-supported blog since 2014. We want to keep this blog as open as possible and that’s the reason we don’t have a subscription fee. You know best whether our work is of value to you or not. If it is, and if your circumstances allow it, we could use your help to carry on for another year: Help Diplopundit Get to Year 10 ⚡️
Posted: 2:55 am ET
[twitter-follow screen_name=’Diplopundit’]

Secretary Tillerson appeared on the Hill for hearings on the FY2018 State Department Budget Request, the first under the Trump Administration. On June 13, he appeared before the Senate Foreign Relations Committee (see video here), and later that same day, he was before the Senate Appropriations Subcommittee on State, Foreign Operations, and Related Programs (see video here). On June 14, Secretary Tillerson also appeared before the full House Foreign Relations Committee (HFAC) to talk about the Trump budget request for the State Department.  During the HFAC hearing, Representative Eliot Engel told Secretary Tillerson that “a member of your staff informed my staff that the reorganization you’re planning  of the State Department will require statutory changes ….”

Should be interesting to find out what kind of changes Tillerson is seeking from Congress in restructuring the agency.  Are we going to see the merging of some functional bureaus? Geographical bureaus realigned to mirror DOD’s combatant commands? Post closures? A new under secretary position swapped for a different one? A brand new mascot to improve morale?

Below are some details from Mr. Tillerson’s testimonies (all in quotation marks) with a few comments of our own.

#1. Reorganization Objective

“I think when this is all said and done, our objective is to enable the people – our Foreign Service officers, our civil servants, our people in our missions, foreign nationals – to deliver on mission with greater efficiency and effectiveness. And in effect, we’re going to get an uplift in effort delivered to the mission.”
— June 13, Senate Appropriations Sub-Committee

#2. Themes and Organizational Boxes

“…Several themes emerged, and I think the overarching theme, obviously though, is the extraordinary dedication and patriotism of the men and women in the State Department and USAID and why they undertake a career like this. And that is a strength that we will build upon. What we heard from a number of people is they are dedicated to this broad mission of representing America’s interests around the world, but from time to time – not just now, but historically as well – there have been mixed messages within the department, between the department and USAID, between the State Department and embassies, missions themselves. So a greater clarity around how the mission is defined and how direction is given.”
–June 13, SFRC

“So most of the themes have to do with – and this was the nature, though, of what we wanted to engage people with – is not, “Is this the right objective or are these the right organizational boxes?” Tell us how you get your work done, and tell us what gets in the way of you getting your work done, and what frustrates you, because that translates to inefficiency and ineffectiveness. As I said, we have no preconceived notions going in. It would have been very easy to approach this, take the organization chart, start collapsing boxes, start making it flatter in an uninformed way. I don’t have any number in mind as to what the efficiency will be, whether it is going to be 10 percent, whether it’s going to be 25, 30; we’re going to let the redesign drive what those efficiencies will be. That’s my experience in doing this in very large organizations both in the private sector and in the nonprofit sector where I’ve taken a similar approach. At the end of it, we capture significant efficiencies, but let’s let the work of the redesign drive that, not go in and say, “I’m looking for 20 percent.” Because those generally are not sustainable changes then.”
–June 13, SFRC

#3. Performance and Accountability

“We also heard a theme that they do not feel that people are held accountable for their work at the State Department, that poor performers are not dealt with. And the people in the State Department know who is getting the work done and who is not getting the work done, and it’s demoralizing to them when they see that we don’t deal with those who are not delivering on their responsibilities. That gets to how we praise performance, how we give people feedback, how we work to improve their performance, so we have a number of human resources processes that we believe can be improved, and a number of leadership areas that need to be addressed.”
–June 13, SFRC

#4. Surveys Completed – 35,000 (out of 84,048 overall staffing for State and USAID)

“We have just completed collecting information on our organizational processes and culture through a survey that was made available to every one of our State and USAID colleagues. Over 35,000 surveys were completed, and we also held in-person listening sessions with approximately 300 individuals to obtain their perspective on what we do and how we do it. I met personally with dozens of team members who spoke candidly about their experiences. From this feedback we have been able to get a clearer overall view of our organization. We have no preconceived outcomes, and our discussions of the goals, priorities, and direction of the State Department and USAID are not token exercises.”
–June 13, Senate Appropriations Sub-Committee

NOTE: How do we reconcile Tillerson’s “we have no preconceived outcomes” with #10 “by the end of Fiscal ’18, we think we’ll be down about 8 percent overall” before his reorganization study/listening tour is even done?

#5. Eliminating Obstacles

“Well, that’s what the entire redesign exercise is about, is understanding better how the work gets done. What we’ve learned out of this listening exercise is the – our colleagues in the State Department and USAID can already identify a number of obstacles to them getting their work done efficiently and effectively. If we eliminate some of those obstacles, it’s like getting another half a person, because they have their time available now to direct it at delivery on mission, as opposed to managing some internal process that’s not directly delivering on mission. I just use that as an example.”
–June 13, Senate Appropriations Sub-Committee

#6. Redesign Timeframe

“I think we will finalize the listening report here in the next few weeks, and we’re going to make that available so people can see that. Out of that report, though, there are about 13 themes that emerged and these were extremely valuable to begin to help us focus on where are the greatest opportunities to remove obstacles for people, because that’s really what this is about, is how do we allow people to get their work done more effectively and more efficiently? And we will be going after the redesign. Some of this is internal processes, some of it is structural, some of it are constraints that, quite frankly, Congress puts on us through some of the appropriation structures. And I understand all well-intended to ensure accountability and oversight, but it ends up adding a lot of layers. So we’re going to be getting at that. We hope to have the way forward, the next step framed here in the kind of August timeframe, so that we can then begin the redesign process itself September. I’m hoping we can have all of that concluded by the end of the calendar year, and then ’18 will be a year of how do we implement this now? How do we effect the change and begin to get that into place?”
–June 13, Senate Appropriations Sub-Committee

#7. Implementation in 2018

“I’ll get a final report. I’m interviewing a couple of individuals who will come in and help us now with the next stage, which is the redesign effort itself, which will be – which will involve the colleagues in the State Department and USAID. That effort likely we’ll have that framed over the course of the summer. The effort itself will likely get underway sometime in August, September timeframe when we have our pathway for the process, how we want to engage our colleagues, how we want to get at various elements and themes that emerged from the listening session. Now, some of this is work process, some of it is how we handle people, some of it is how decisions are made. It’s a very broad set of issues which were quite informative. So we’ve got to map out how do we want to get at each of those, but the work itself will start towards the end of the year. Hopefully, we will have some clarity around what that looks like by the end of this year; early next year, we’ll begin implementation.”
–June 13, SFRC

#8. Who’s coming to Foggy Bottom?

“… Having done this in the private sector once or twice and in a big nonprofit once, there is a process that I know has delivered for me in the past. So we just concluded this listening effort, which will inform us and shape how we feel we need to now attack the redesign and the way forward. Now, I’ve interviewed a couple of individuals to come in and help me lead that effort.”
–June 13, Senate Appropriations Sub-Committee

#9. Institutionalizing Change

“Well, I think that perhaps the difference in how we’re thinking about this, not a – just is what people think about things differently. The effort that we’re undertaking is to institutionalize change so that it stays and we capture, now and forevermore, these efficiencies.”
–June 13, SFRC

#10. State Department Workforce Projected to be ⬇︎8% by End of FY18 — 1:3 Replacement

“We actually are up about 50 Foreign Service officers from the start of the year, about a half a percent. The effect will come later, as what we’re doing is just allowing normal attrition to bring the numbers down. And as we look forward, we know we’ve got to continue to replenish our Foreign Service officer corps, so we are still interviewing people. And as we look ahead, we’ll probably be looking at a one-for-three kind of replacement. But the Foreign Service, if you – if we look further out, and I think we’ve said this publicly – by the end of Fiscal ’18, we think we’ll be down about 8 percent overall on the permanent State Department Foreign Service/Civil Service. Foreign Service is actually only going to be down about 4 percent; civil servants are going to be down about 12. So it’s being managed in a deliberate way, but being very mindful of not diminishing the strength of our Foreign Service officers.”
–June 13, SFRC

NOTE: On May 10, careers.state.gov posted this note in the forum: “The Office of Recruitment, Examination and Employment sent letters to all candidates on the Generalist registers notifying them of the opportunity to join the Consular Fellows Program. This program is a priority initiative for the US Department of State in the coming years and we encourage all of our qualified candidates to consider joining the Foreign Service to fill this important role.”  HR is telling FSO candidates waiting to be called to a class (career tracks) that they can join the Consular Fellow Program (non-career track, 60 months tenure). Why would anyone want to do that?  This tells us that State has hiring authority for the CF program, but may not have one for the career candidates. Also see #14 below.

#11. Staffing the Top Ranks of the State Department

“We’re at about, I would say, the 50 percent mark in terms of undersecretaries/assistant secretaries. In terms of people that have been identified, names are actually being submitted so they can begin to work their way through the White House PPO process, but also, for a lot of people, they have to get this paperwork behind them. And I would tell you that is no small challenge. As I check on the status of various people we have recommended and nominated to the White House, what I’m finding is more o[en than not it’s the paperwork that is slowing them down. In my own case, I had to hire eight people to help me get mine done. Most people can’t afford to hire eight people to help them get their paperwork done, so it takes a very long time. But we’re about 50 percent of the way through, and we have other names that are in process. What we’re doing, we try to get the candidate list of people we think are – would be useful to talk to down to a couple, and then we actually interview them face to face and then make a decision and submit them. So this is a pretty active process. It’s one I sit down with the people that are helping me coordinate it about every 10 days just to see where are we, make decisions on other people. If we’re hearing feedback, we talk to folks, maybe they don’t want to do it after all. So it’s moving, and that’s about where we are within the State Department and the bureaus.”
–June 13, SFRC

RELATED POSTS: 
America’s Cushiest Ambassadorships Will Go Vacant By Inauguration Day;
Who Will Be Acting Secretary of State Pending Rex Tillerson’s Confirmation? (Updated);
Tillerson/Priebus Standoff on Ambassadorships, Plus Rumored Names/Posts (Updated);
Snapshot: @StateDept Presidential Appointee Positions Requiring Senate Confirmation;
Is Foggy Bottom’s T-Rex as Stealthy and Cunning as His Theropod Namesake?;
Rex Tillerson’s Inner Circle Photo Album, Say Cheese Con Quezo!

#12. No firing program planned

“We’re not going to have to fire anyone. This is all being done through the hiring freeze, normal attrition, with a very limited, if needed – because we haven’t determined whether we’ll even need it – a very limited buyout program between the end of this year and next. So there is no firing program planned.”
–June 13, Senate Appropriations Sub-Committee

Note: The last time the State Department suffered through a 27% budget cut between 1993-1996, the agency trimmed more than 1,100 jobs at the State Department, 600 jobs at  the U.S. Information Agency (USIA), and shuttered consulates in 26 foreign cities. USAID lost about 2,000 jobs and closed 28 aid missions abroad (see The Last Time @StateDept Had a 27% Budget Cut, Congress Killed ACDA and USIA).  We understand that there are plans to close the U.S. Consulate General in Basrah, Iraq, as well as several smaller posts. If those plans are implemented, how can the State Department avoid a firing program? In the case of Basrah, will American employees simply be relocated to other posts, and will local employees simply be absorbed by Baghdad and other posts in the region? (see U.S. Consulate General #Basrah, Iraq: Six-Year Old Diplomatic Outpost Faces Closure).

#13. EFM Hiring Freeze

“State Department family members that are eligible to be hired in mission – we have a waiver process in place for that, and I have approved a number. The freeze does extend, in answer to your question, to all of those. But where we have critical missions, like in Iraq, Pakistan, Afghanistan, where we really need these positions filled by family members who are willing to go to those tough locations, I have been providing waivers in those circumstances.”
–June 13, SFRC

NOTE: We’ve blogged previously about the hiring freeze and EFM jobs. According to the November 2016 data, there are about 300 EFM positions in SCA (bureau covers Afghanistan, Pakistan, Bangladesh), 560 positions in AF, and almost 400 positions in NEA (bureau covers Iraq, Egypt, Lebanon). Back in April, we were hearing that some 70+ EFM waivers were requested. At that time, we understand that Tillerson only granted waivers for 6 EFM positions, and all are for priority posts. Since the State Department’s Public Affairs office refuses to answer routine questions from this blog, we’re hoping that congressional reps will ask follow-up Questions For the Record (QFRs).

If the Secretary of State is only issuing EFM waivers to family members accompanying FS employees to critical missions like Iraq, Pakistan, and Afghanistan, he’s basically ignoring the potential fallout of this decision to smaller posts, or posts with high turn-over this transfer season.

Posts typically depend on EFMs to provide support in consular sections, facilities management, security, health unit, vetting, grants, etc. When post has only about a dozen Direct Hire (DH) American employees, this support is just as critical to these mission.  So when these EFMs leave their posts during the ongoing transfer season, these positions will not be filled due to the hiring freeze; and they can’t be hired at their next posts because of the same hiring freeze. When posts are unable to hire EFMs, these jobs still need to be done, so DH employees will need to do their jobs and the EFM jobs. And if there are other gaps in staffing, folks could be wearing three-four hats.  Until when? Potentially until Tillerson lifts the freeze. Which won’t happen until the reorganization plan is “fully developed.” Which may not happen until fall or end of the calendar year. Maybe he’ll wait until early 2018 when the plan is implemented?  Oh, who knows? Does he even care?

READ MORE:
Snapshot: Geographic Distribution of Family Member UnEmployment Overseas;
Oy! That Rumor About Foreign Service Family Member Employment as “Corporate Welfare”;
Are #EFM positions literally about to become…extinct under #Tillerson’s watch?;
No thaw in sight for @StateDept hiring freeze until reorganization plan is “fully developed”

#14. Rangel and Pickering Fellows

“I don’t think we’ve frozen the Rangel and Pickering programs in terms of people that are in process. We’re continuing and we’re going to continue to take applicants as well. But let me follow up with you because I don’t think there’s a full freeze in place of those.”
–June 13, SFRC

“There is no freeze. The structure of the program Rangle-Pickering which is very important to us, and we have every intention of continuing it. The obligation and the contract that the young people and others engage with us when we fund their tuition and for their graduate studies is that we confirm that we offer them a position in Consular Affairs. That is confirmed and it’s a five-year commitment on their part to serve. We then say, we will put you on the list for consideration for the next A-100 Foreign Service class.  We are holding the next A-100 Foreign Service class because quite frankly right now our Foreign Service officer staffing were actually up about 50 people from the beginning of the year with our expected manning — which we’re looking at an 8% reduction by the end of fiscal 2018 — in order for us to have time to manage how we want that to occur so that we do not diminish the strength of the Foreign Service corps. We are holding the next A-100 class so nothing has been frozen and we want people to continue to apply and they’re all offered a position in Consular Affairs. And that is no change from the past. There’s never been a guarantee that anyone would have a clearer offer or pathway to the Foreign Service that would be considered for Foreign Service based upon the work they completed but they always have an offer to go to work in Consular Affairs.”
–June 14, HFAC in response to Congressman Meeks

Note: The Charles B. Rangel Fellows and the Thomas R. Pickering Fellows are two of the nine fellowship programs under the State Department’s  Diplomacy Fellows Program (DFP) designed to advance eligible candidates to the Foreign Service Oral Assessment for the competitive selection of entry level Foreign Service Officer Candidates.  The careers.state.gov website states  “We are not currently accepting applications for the Diplomacy Fellows Program.”  Also see the DPB of June 15, 2017.  A total of 31 members signed a letter to Tillerson calling on the Secretary of State to exempt the Rangel and Pickering Fellows from the State Department hiring freeze.

The Secretary told Congress that the State Department is holding the next A-100 class but the classes for July and September have not been confirmed. The next FSO/Generalist class is scheduled to start on July 10.  As of June 8, 2017, careers.state.gov is telling applicants “Still no decision has been taken regarding A-100 classes for Foreign Service Specialist and Generalist candidates this year.” There has been no recent update on start dates as far as we could tell.

Tillerson appears to be saying there’s no assurance for the diplomacy fellows to get a spot in A-100 class (career appointment) but that there was always an offer  for them to go work for Consular Affairs. What? That can’t be right. He did not specifically mentioned Consular Fellows but since he also talked about Consular Affairs and a 5-year commitment, we suspect that this is the program he is talking about.

Consular Fellows are hired via limited non-career appointments (LNAs). The Consular Fellow LNA appointment is for 5 years, but may be terminated at any time based on performance and/or needs of the Service. These are paid, non-career positions. The Consular Fellows program, similar to its predecessor, the Consular Adjudicator Limited Non-Career Appointment (CA LNA) program, is not/not an alternate entry method to the Foreign Service or the U.S. Department of State, i.e. this service does not lead to onward employment at the U.S. Department of State or with the U.S. government.  See more here: https://careers.state.gov/work/foreign-service/consular-fellows.

If the Consular Fellows Program will be the hiring priority initiative this year and in the coming years, before long the Foreign Service will be encumbered by career Foreign Service officers/specialists (1:3 hiring to attrition) and non-career Consular Fellows on a 60 month limited appointment who can only do consular tours.  At some point, unless there is a correction, the Foreign Service will again be divided into career diplomatic employees, and a consular corps with a limited career track that does not go beyond 5 years. That’s the future we’re reading.

HIRING: We’ve blogged previously about this here:
@StateDept Gets Exemption From Trump Federal Hiring Freeze, March Classes Are On;
Snapshot: Historical and Projected Foreign Service Attrition;
With Zero Information From @StateDept, Foreign Service Candidates Remain in Limbo;
OMB Issues Initial Guidance For Federal Civilian Hiring Freeze (Read Memo);
President Trump Freezes Federal Hiring Regardless of Funding Sources (Read Memo);
@StateDept Sends Out Job Offers to Prospective FSOs For March 6 Class But — Will There Be Jobs?

#15. Safety as the Highest Priority

“We’ve made the safety of not just our State Department employees but Americans broadly our highest priority, certainly as it relates to our embassy presence, our consular office presence, and our missions around the world. If you examine the security elements of the budget, our budget for Diplomatic Security is actually up 11 percent, year on year. Where we have reductions has to do with some of the construction, the buildings, part of the budget for embassies and other facilities. Part of that we’ll manage with some multiyear commitments across ’17 to ’18, and some of this has to do with just our ability to move projects along promptly. We are clearly committed to the Benghazi ARB recommendations, and I’m monitoring those carefully. We have some gaps we need to close. The OIG has helped us identify some of those. We’re going to stay on top of those. If there were more funds there, we would simply try to step up more activity on some of the building and maintenance issues. So most of the reduction is in building and maintenance efforts, which we believe are manageable, at least through Fiscal Year ’18.”
–June 13, SFRC

#16. Security and Embassy Construction – Back to Standard Design

“The current budget around security, both security services as well as embassy construction will allow us to maintain our program pretty much through 2018. We will begin to have planning difficulties in 19 at this level and we’re in discussions with OMB about that. And I think to your points about the execution against embassy construction, it really is an execution issue and I agree we need to get back to standard designs, fear scope changes, we don’t need to be unique every place. Plus I’m a fit for purpose guy and we ned to build what’s needed first to deliver the mission.”
— June 14, HFAC

#17. Money Spent Not/Not Indicator of U.S. Commitment 

“I am listening to what my people tell me are the challenges facing them and how we can produce a more efficient and effective State Department and USAID. And we will work as a team and with the Congress to improve both organizations. Throughout my career, I have never believed, nor have I experienced, that the level of funding devoted to a goal is the most important factor in achieving it. Our budget will never be determined – will never determine our ability to be effective; our people will.”
–June 13, Appropriations Sub-Committee

“….That long list of challenges on that board over there have been around for a while. The level of spending we’ve been carrying out hasn’t solved them. I go back to my view that I don’t think the money we spend is necessarily an indicator of our commitment. I think how we go about it – and we’ve got to take some new approaches to begin to address some of these very daunting challenges. The aid and the support and what we can bring to the issue is important. I’m not in any way diminishing that. But I don’t – I think if we equate the budget level to somehow some level of commitment or some level of expected success, I think we’re really undercutting and selling short people’s intellectual capacity to bring different approaches to these problems.”
–June 13, Senate Appropriations Sub-Committee

#18. Refugees

“I would take exception to the comment that we’re walking away from our responsibilities in that region with all of the men and women in uniform we have fighting and the State Department diplomatic resources we have to get at the reason the refugees are in Jordan. And I would tell you in working with the region, they all understand – Turkey, Jordan, others understand – we’d like the refugees to stay close to their homes so they can go back. Having them come all the way to the United States doesn’t – may not achieve that. So our approach on the significant problem of refugee migration locally is to solve the problem that allows people to go home. We have already seen some success in the liberation of Mosul and other cities. We hope to replicate that kind of success in Syria where we have come behind the military quickly when they liberate an area, create a secure zone, restore power and water, restore hospitals, restore schools. We have close to 40,000 children back in school in East Mosul already. People will come back if we create the conditions. So we really want refugees to return; it’s not the objective to have Jordan have to house those refugees now and forevermore.”
–June 13, SFRC

#19. Russia Sanctions

“I think it is important that we be given sufficient flexibility to achieve the Minsk objectives. It is very possible that the Government of Ukraine and the Government of Russia could to come to a satisfactory resolution through some structure other than Minsk that would achieve the objectives  of Minsk which we’re committed to. So my caution is I would not want ourselves handcuffed to Minsk if it turns out the parties decides to settle this through a different agreement.”
— June 14, HFAC

#20. Russian Dachas and Irritants 

“So we segmented the big issues from this list of what I call the irritants. The dachas are on that list. We have things on the list, such as trying to get the permits for our consular office in St. Petersburg. We’ve got issues with harassment of our embassy employees in Moscow. We have a list of things; they have a list of things. I don’t want to suggest to you this is some kind of a bartering deal. It’s more, let’s start working on some of the smalls and see if we can solve them. As to the dachas, these two properties have been in ownership of the Russians dating back to the Soviet Union – 1971. They’ve owned these properties and have used these properties for a very long time. They were transferred to the Russian Federation Government for $1 at the breakup of the Soviet Union. We have continued to allow them to use these properties, and they have used these properties continuously for all that time. President Obama, in response to the interference with the election, expelled the 35 Russian diplomats and seized these two properties. What we’re working through with them in this conversation is: Under what terms and conditions would we be, would we allow them to access the properties again for recreational purpose? We’ve not taken the properties from them; they still belong to them. So we’re not going to seize properties that are theirs and remove their — but we are talking about under what conditions would we allow you to use them for recreational purposes, which is what they have asked.”
–June 13, SFRC

#