1. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 1 Steven W. Koehn, Director / State Forester Kenneth Jolly, Associate Director Don VanHassent, Associate Director MD DNR FOREST SERVICE 2.0 “HITTING THE RE-SET BUTTON”

2. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 2 What It’s NOT –A Workforce Reduction Effort –Changing Office Assignments What It IS –A New Organizational Structure to Better Focus on MD’s Critical Forestry Issues –Enhanced Integration of Capacity and Resources –Improved Career Advancement Opportunities –A Comprehensive Re-Alignment of All Administrative Support Systems to Support the New Structure MD DNR FOREST SERVICE 2.0 What It’s Not & What It Is …

3. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 3 “We’re not in Kansas anymore, Toto!”We’re not in Kansas anymore - Dorothy, in the Wizard of Oz The Case for Change: The “New Normal”

4. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 4 The “New Normal” is: Declining State and Federal Budgets Government budgets will not be returning to previous growth levels Even if they do recover, limited government funds will go towards other priorities Since assuming office, the O’Malley Administration has collectively reduced State spending by $7.5 billion, and eliminated over 5,500 State positions During the FY12 Session, Gov. O’Malley approved over $800 million in budget reduction for the FY13 Budget; similar budget decisions will be faced in the current FY13 Session for the FY14 Budget

5. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 5 The “New Normal” is: Heavy Dependence on Special Funds Since 2008, DNR’s General Funds have been reduced by close to 40% DNR has been forced to redirect and reduce it’s Agency budget to deal with the “New Normal” of significantly reduced General Funds As a direct result, the Forest Service budget is now only about 6% General Funds (previously was about 70%)

6. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 6 With the reduction of General Funds, DNR has initiated various fund swap actions to backfill the loss of General Funds with Special Funds However, existing Special Fund balances are quickly being “zeroed out,” and without intervention, are projected to go negative in FY15 The “New Normal” is: Heavy Dependence on Special Funds

7. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 7 The “New Normal” is: Heavy Dependence on Special Funds

8. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 8 The “New Normal” is: Constant Pressure to Stay Relevant The Forest Service has to constantly demonstrate it is part of the solution to “big picture” environmental issues, which in turn convince decision- makers the agency is worthy of maintaining funding The Forest Service has to constantly demonstrate it is engaged in cooperative partnerships that leverage its funding and resources to maximize impacts Social Benefits Economic Benefits ForestSustainability Environmental Benefits Bottom line: the agency has to have a “mindset” that is ready to adapt to new challenges on a constant basis

9. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 9 The “New Normal” is: Constrained Resources/Capacity The Forest Service has continuously eliminated positions as a result of budget reductions for over a decade Between FY02-FY12, the Unit’s authorized positions were reduced from 135 to 87 (35%) Taking into account the transfer of 12 positions from the Park Service associated with State Forests, the genuine Forest Service position reduction for this period is 44%

10. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 10 This 44% staff reduction has required the agency to eliminate Information & Education services, limit fire suppression assistance to VFD’s, and reduce delivery of forest stewardship planning services Existing staff are now required to provide services in a much broader manner on a per staff basis The current organizational structure is built for a much larger workforce, and doesn’t facilitate the “organizational nimbleness” necessary for the smaller agency that we have become (and that we will continue to be) The “New Normal” is: Constrained Resources/Capacity

11. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 11 The “New Normal” is: Summary of Current/Future Realities Declining State and Federal Budgets –Safety, Health & Education (SHE) are always high priorities –Limited funds for forestry Heavy dependence on Special Funds Must be relevant to “big” environmental issues Constrained resource capacity –Every vacancy only has a “50-50” chance of being filled

12. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 12 Responding to the “New Normal” is like:....responding to a heart attack.... When a patient suffers a heart attack, emergency medical technicians respond quickly to stabilize the patient, and hospital doctors implement emergency medical procedures to address the immediate crisis If this is successful, the patient is released from the hospital and goes back to their regular home environment – where they are faced with a critical choice: –Do they make the necessary – and often difficult – lifestyle changes prescribed by their doctor to avoid a second heart attack? –Or do they return to the way they used to live, and ignore the “New Normal” that they are now much more susceptible to another (potentially fatal) heart attack?

13. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 13 Responding to the “New Normal”: Making “Lifestyle Changes” Over the past several years, the Forest Service has done what it had to do to deal with the “emergency” budget crisis situations.... But we’ve also committed ourselves to make the “lifestyle changes” that we need to make to deal with the “new normal” –We completed a statewide Resource Assessment to identify priority landscapes –We then developed a Forest Action Plan that identifies and prioritizes five “Critical Issues” for forestry in MD –We used the Forest Action Plan to develop a Unit Annual Work Plan

14. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 14 We eliminated the long-standing “first come, first serve” approach to providing Stewardship Planning Services, and have adopted a new Operations Order delineating priority areas for this service (and areas where we do not provide this service) We have forged a much stronger alliance with Chesapeake & Coastal Service in accomplishing GDU’s and priority TDML objectives We’ve “re-habilitated” our Unit image to a “Can Do” Unit that has a much broader perspective on trees and forests Responding to the “New Normal”: Making “Lifestyle Changes” High Priority Urban High Priority Rural

15. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 15 In addition to all of these actions, Forest Service leadership has also been quietly engaged for the past several years in designing a new Organizational Structure – a structure that is more nimble and capable of responding to the “new normal” conditions of the future Although the process has been lengthy, we purposely took our time to ensure we “get it right,” and we’ve kept the Office of the Secretary (OOS) fully informed of our process – and the result is that the new structure is viewed very favorably by the OOS – and by the Department of Budget & Management (DBM - which has the final approval authority over Agency re- organizations) Responding to the “New Normal”: Making “Lifestyle Changes”

16. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 16 Making Lifestyle Changes: Summary of Ongoing Actions Completed Resource Assessment / Forest Action Plan Used to develop Unit Annual Work Plan Basis for new Stewardship Planning policy Stronger GDU / TDML partnerships Improved Unit image – “Can Do” attitude with a broader perspective Re-aligning Org. Structure and Systems  Implementing NOW

17. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 17 The New Organizational Structure: Forest Service “2.0” The new structure has been intentionally designed to be “in sync” with the new direction that State and Private Forestry (S&PF) is headed at the National Level – e.g., with the “USFS ReDesign” effort ReDesign identified three “National Themes” for S&PF efforts Further, as part of the ReDesign effort, allocation of federal SP&F funding was partially changed – from a strictly formulaic, program-based system (Stewardship, Fire, Urban) – to a funding allocation that now incorporates an evaluation of how well the states are addressing the National Themes Conserve Working Forest Landscapes Protect Forests from Harm Enhance Benefits From Trees and Forests

18. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 18 Another major factor in designing the new organizational structure is to align resources in such a way as to better address the five Critical Forestry Issues facing the state, as identified in the Forestry Action Plan: –Restore and Sustain Forest Landscapes –Ensure Healthy and Resilient Forests –Ensure Clean and Abundant Water –Create Jobs and Sustainable Communities –Make Landscapes More Resilient to Climate Change The New Organizational Structure: Forest Service “2.0”

19. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 19 No “Sacred Cows”

20. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 20 Consequently, a major emphasis of the new Forest Service Organizational Structure is to create a Structure that moves beyond current “silos” –Program silos –Geographic Regional / Project silos –Public / Private land silos Into a more flexible structure that promotes –A higher level of integrated teams and programs –Focused on addressing the three National Themes and the five MD Critical Issues The New Organizational Structure: Forest Service “2.0” Bottom Line: the new structure is designed to move away from Regions/Programs, and move towards Teams/Themes

21. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 21 Why we need a new structure: The perils of not making this “Lifestyle Change” Forest Service becomes Dysfunctional –The form of an organization should be tailored to its function (“form follows function”); if an organization’s structure gets in the way of achieving it’s strategic goals, the agency becomes dysfunctional (“structure follows strategy”) Current structure limits adaptability –A new structure is needed to better respond to the actual workforce size of the Forest Service, and to better facilitate the integrated work of various resource specialists to address identified priorities An in-grained silo-structure limits adaptability to respond to future challenges Dysfunctional + Non-adaptable = Irrelevance –A dysfunctional / non-adaptable organizational structure ultimately leads to Unit irrelevance and further resource loss Just the opposite of where we want to be!! The New Organizational Structure: Forest Service “2.0”

22. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 22 A Unit that is structured to focus our work on addressing MD’s priority forest conservation challenges / Critical Issues No more silos – a more effective, integrated, adaptable, and relevant Forest Service Enhanced integration of available staff resources at all levels Improved efficiencies in workforce recruitment and advancement A comprehensive alignment of all administrative support systems that are necessary to solidify this “new way of doing business” into the future The New Organization: Forest Service “2.0” What are the desired outcomes for the new organization?

23. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 23 Achieving These Desired Outcomes The new structure is designed to deal with the “new normal” of a much smaller workforce and fewer program specialist positions –Reduces the Unit’s top leadership from 13 to 9 positions (a 31% reduction, which corresponds fairly closely on a percentage basis to the overall reduction in the Unit’s available positions) –Replaces the current “Region/Project” structure with a more flexible “Ecosystem/Landscape” structure, and replaces the current “Program” structure with a smaller number of integrated teams charged with a broader “thematic” function –The current four Regions and five Program areas are re- organized into three Teams and three Themes The New Organization: Forest Service “2.0”

24. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 24 In addition to organization structure changes, a comprehensive re- alignment of administrative support systems will be implemented: –An overhauled and simplified budget structure –“Fixed” job classifications for the “Forester/Forestry Manager” series –The creation of two completely new job classification series for Forest Technicians and Program Specialists –Enhanced career ladder for staff / greater opportunities for professional advancement –A new approach to performance measures, directed by the Forestry Action Plan (as synthesized by the Unit Annual Work Plan) Achieving These Desired Outcomes The New Organization: Forest Service “2.0”

25. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 25 State Forester/ Unit Director S. Koehn Stewardship/Utilization D. Rider Sustainable Forestry Council Forest Conservancy District Boards Associate Director Statewide Programs D. VanHassent Associate Director Field Operations K. Jolly Urban Programs M. Honeczy Central Region W. Merkel Eastern Region K. Powers Southern Region D. Gailey Fire Management M. Mitchell Western Region B. Webster Forest Res. Planning J. Perdue Watershed Mgmt. A. Hairtston-Strang Finance and Admin. S. Allen P. Cressman Mgmt. Assoc. State Forester/ Unit Director S. Koehn Rural and Community Forestry Program Manager Forest Conservancy District Boards Sustainable Forestry Council Associate Director Statewide Programs D. VanHassent Associate Director Field Operations K. Jolly Forest Health and Protection Program Manager Appalachian Forest Area Program Manager Coastal Forest Area Program Manager Piedmont Forest Area Program Manager Finance and Administration Program Manager

26. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 26 Associate Director Field Operations K. Jolly State Forest Mgr Western Region B. Webster Central Region W. Merkel Admin. Asst. Eastern Region K. Powers Southern Region D. Gailey Forest Res. Planning J. Perdue Project Manager Admin. Asst. Project Manager Admin. Asst. State Forest Mgr Planner/GIS Project Manager State Forest Mgr Associate Director Field Operations K. Jolly Piedmont Forest Area Program Manager Appalachian Forest Area Program Manager Area Mgrs / Staff Working Landscapes Manager Priority Ecosystems Manager Eco Mgrs / Staff Coastal Forest Area Program Manager Working Landscapes Manager Working Landscapes Manager Area Mgrs / Staff Priority Ecosystems Manager Priority Ecosystems Manager Eco Mgrs / Staff Ecosystems Staff

27. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 27 Associate Director Statewide Programs D. VanHassent WR Wshed Coord. Watershed Mgmt. A. Hairtston-Strang Stewardship/Utilization D. Rider WR Wshed For. Urban Programs M. Honeczy Reg UCF Coord. Fire Management M. Mitchell Finance and Admin. S. Allen R. Estep Admin. Spec. Ayton Nursery Staff TreeMend/MPT Ches. Bay/ Special Rivers Coord. Reg UCF Coord. ER Fire Manager ER Fire Spec. WR Fire Manager WR Fire Spec. Associate Director Statewide Programs D. VanHassent Appalachian Watershed Coord. Forest Health and Protection Program Manager Rural and Community Forestry Program Manager Appalachian Watershed For. Urban Programs Urban Program Coordinators / Staff Certification/ GIS Finance and Administration Program Manager Stewardship/ Utilization Cert / GIS Staff Fire Mgmt/ Firewise Ches. Bay/ Special Rivers Coord. Fire Mgmt/ Firewise Staff Finance and Admin. Staff Nursery Mgr / Staff

28. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 28 The New Organization: Forest Service “2.0” So – now that we know what the new Organizational Structure looks like, what does the new “personnel support system” (revised Job Classifications) look like? Current Specification Job TitleNEW (Currently under DBM review) Specification Job Title Forester I (Grade 13)Forester I-IV (Grade 13-16) Forester Licensed (Grade 14) Forester Supervisor (Grade 15) Forestry Manager I-IV (Grade 16-19)Forestry Manager I-III (Grade 17-19) Forester/Forestry Manager series:

29. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 29 The New Organization: Forest Service “2.0” So – now that we know what the new Organizational Structure looks like, what does the new “personnel support system” (revised Job Classifications) look like? Natural Resources Technician / Program Specialists series: Current Specification Job TitleNEW (Currently under DBM review) Specification Job Title Natural Resources Technician I-VI (Grade 8-13) Forestry Specialist I –VI (Grade 9-14) Forestry Specialist Manager I-IV (Grade 15-18)

30. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 30 The New Organization: Next Steps Overhaul the existing Budget System –We have begun preliminary work on this, which will be fully realized during the development of the FY15 Budget (FY14 will be a transitional year) Get the new job classification series approved by DBM –The new job specs are currently under review by DBM-Personnel, and at present, the approval process appears to be going smoothly The fact that the new Organizational Structure has already been approved by DBM-Budget helps greatly in this process Draft the specific job descriptions (MS-22’s) for new Organizational positions, and have them approved by DBM using the new job classifications –This step goes “hand-in-glove” with the approval of the new specs

31. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 31 “On-the-ground” implementation of the new structure –Advance communication of new structure to partners / stakeholders –Coordinate with DNR-HRS on proper procedures for filling new Organizational positions –“Fill in the boxes” via interviews and appointments (appointments at top levels only) –Have the new organization in place July 1 (if administratively possible) –Build the new organization through team development and celebrating success The New Organization: Next Steps

32. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 32 Closing Summary The “New Normal”: The Need For Change “Lifestyle Changes” that Address the “New Normal” Forest Service 2.0 –New Organizational Structure –New Budget Structure –New Personnel Systems / Enhanced Career Opportunities –New Performance Planning and Evaluation Systems

33. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 33 A great deal of effort and thought by the entire Forest Service Leadership Team has gone into designing this new and comprehensive approach – why? To ensure the Forest Service will remain relevant and thrive into the future as a result of these changes Be confident that the intention of this new approach is to proactively place the Forest Service in the best position possible to face the challenges that we know lay ahead of us We know that the transition process will be difficult, emotional, and will take all of our collective creative energy to pull it off successfully – but we’re confident we can do it together!! We know there will be “glitches” as we move forward – the expectation is that we collectively attack the issues, not each other, and that we will fix the problems, not the blame We recognize this is a major change – however, our desire is that it will be a major positive change for the Unit, and we are likewise confident that we will make this a resounding success as work together to build the Forest Service of the future! The New Forest Service: Parting Thoughts

34. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 34 Moving Forward “We must be more than careful stewards of the land; we must be constant catalysts for positive change.” - Gifford Pinchot

35. MD FOREST SERVICE 2.0 -“HITTING THE RE-SET BUTTON” 35 Questions?