Addressing the Effects of Transformation Efforts

SBA continues to face several challenges stemming from its transformation efforts that began in 2002 and have included centralizing some loan functions and changing the roles and responsibilities of SBA’s 68 district offices.

• These efforts created backlogs in some of its loan functions and contributed to lower employee morale.
• GAO and SBA Inspector General reviews found that SBA management did not adequately consider key practices, such as adequate planning and communicating with employees and stakeholders.
• More recently, SBA has taken steps to address the adverse impacts of its past transformation efforts, such as improving agencywide communication and providing training to employees who have new roles and responsibilities.

^ Back to topWhat Needs to Be Done

SBA has made progress in how it implements changes to transform the agency and improve operations. However, with the recent departure of the SBA Administrator and the upcoming change in administrations, these efforts will need sustained attention.

• SBA needs to develop measures to track whether centralization of its loan functions are effective.
• Continued leadership commitment to practices that support successful transformation, such as effective communication with employees, will also be important to sustaining progress.

Highlights of GAO-08-995 (PDF)

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