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Office of Management and Budget officials have begun to investigate whether the office lacks management skills and resources and may consider monetary incentives for performance improvements across government, said OMB Director Mitchell Daniels Jr.

Daniels said OMB would increase staffing and funding if an upcoming report indicates shortcomings in management. "We are very intent on making forward progress in this area," he said May 23.

When it comes to improving performance at other agencies, OMB officials are again raising the possibility of allowing agencies to keep the money they save through better management, Daniels said. And at the personnel level, the administration is pursuing incentives for individuals involved in agency initiatives that show particularly strong improvements, he said.

With regard to OMB personnel, the Senate Governmental Affairs Committee voted May 23 to support two key nominees for OMB's management leadership — Angela Styles for administrator of the Office of Federal Procurement Policy and John Graham for administrator of the Office of Information and Regulatory Affairs. The full Senate confirmed Styles on May 24.

OMB still lacks a nominee for deputy director of management, the lead official for all federal management issues. The agency has brought in Robert O'Neill, president of the National Academy of Public Administration, as a temporary adviser for Daniels, and although O'Neill "could add value in a hundred areas we're going to pick a few," Daniels said.

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