BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM GOVERNMENT PERFORMANCE AND RESULTS ACT STRATEGIC PLANNING DOCUMENT 2008-2011 CONTENTS INTRODUCTION........................................................................................................................................ 1 MISSION ..................................................................................................................................................... 1 VALUES ...................................................................................................................................................... 1 GOALS........................................................................................................................................................ 1 ACHIEVEMENT OF GOALS AND OBJECTIVES ............................................................................................... 2 Background........................................................................................................................................... 2 PLANNING CONSIDERATIONS...................................................................................................................... 3 Strategic Planning and the Budgeting Process..................................................................................... 3 Planning Background ........................................................................................................................... 3 MONETARY POLICY FUNCTION.......................................................................................................... 5 GOAL.......................................................................................................................................................... 5 Objective 1 ............................................................................................................................................ 5 Objective 2 ............................................................................................................................................ 6 Objective 3 ............................................................................................................................................ 6 Objective 4 ............................................................................................................................................ 6 Objective 5 ............................................................................................................................................ 7 ENVIRONMENTAL FACTORS........................................................................................................................ 7 Legislative Changes.............................................................................................................................. 8 PERFORMANCE MEASURES......................................................................................................................... 8 SUPERVISION AND REGULATION FUNCTION................................................................................. 9 GOALS........................................................................................................................................................ 9 Objective 1 ............................................................................................................................................ 9 Objective 2 .......................................................................................................................................... 11 Objective 3 .......................................................................................................................................... 12 Objective 4 .......................................................................................................................................... 13 Objective 5 .......................................................................................................................................... 13 Objective 6 .......................................................................................................................................... 14 ENVIRONMENTAL FACTORS...................................................................................................................... 15 PERFORMANCE MEASURES....................................................................................................................... 17 PAYMENT SYSTEM POLICY AND OVERSIGHT FUNCTION ....................................................... 19 GOALS...................................................................................................................................................... 19 Objective 1 .......................................................................................................................................... 19 Objective 2 .......................................................................................................................................... 20 Objective 3 .......................................................................................................................................... 21 ENVIRONMENTAL FACTORS...................................................................................................................... 21 PERFORMANCE MEASURES....................................................................................................................... 22 INTERNAL BOARD SUPPORT.............................................................................................................. 23 GOAL........................................................................................................................................................ 23 Objective 1 .......................................................................................................................................... 23 Objective 2 .......................................................................................................................................... 24 Objective 3 .......................................................................................................................................... 24 Objective 4 .......................................................................................................................................... 25 Objective 5 .......................................................................................................................................... 26 ENVIRONMENTAL FACTORS...................................................................................................................... 27 PERFORMANCE MEASURES....................................................................................................................... 27 DISSEMINATING GOALS AND OBJECTIVES AND HOLDING MANAGERS ACCOUNTABLE i FOR RESULTS .......................................................................................................................................... 29 PROGRAM EVALUATIONS................................................................................................................... 30 MONETARY POLICY FUNCTION ................................................................................................................ 30 SUPERVISION AND REGULATION FUNCTION ............................................................................................. 30 PAYMENT SYSTEM POLICY AND OVERSIGHT FUNCTION........................................................................... 30 INTERNAL BOARD SUPPORT ..................................................................................................................... 31 INTERAGENCY COORDINATION OF ................................................................................................ 32 CROSS-CUTTING ISSUES ...................................................................................................................... 32 STAKEHOLDER CONSULTATIONS .............................................................................................................. 32 APPENDIX 1 .............................................................................................................................................. 34 THE FEDERAL RESERVE SYSTEM: THE NATION’S CENTRAL BANK .......................................................... 34 Board of Governors ............................................................................................................................ 35 Structure of the System........................................................................................................................ 35 APPENDIX 2 .............................................................................................................................................. 37 MANAGEMENT ISSUES.............................................................................................................................. 37 Monetary Policy Function .................................................................................................................. 37 Supervision and Regulation Function................................................................................................. 38 Payment System Policy and Oversight Function ................................................................................ 38 ii INTRODUCTION ______________________________________________________________________________________ INTRODUCTION The Board of Governors of the Federal Reserve System (the Board)