Summary: The State Department--the lead agency for advancing and protecting U.S. interests abroad--maintains a worldwide network of operations at more than 250 locations overseas to support its mission and those of 35 other U.S. agencies. A substantial share of the Department's $3-billion annual budget goes to support these operations, which range from providing security for more than 50,000 State Department and other U.S. agency personnel to finding suitable housing for American employees and their families. This testimony focuses on the management challenges that State faces in improving its operations in the following four areas: improving the security of U.S. personnel and facilities overseas in a cost-effective and timely manner, determining the right size and location of the U.S. overseas presence to improve the efficiency of operations, upgrading information and financial management systems to further strengthen communications and accountability, and improving performance planning to better achieve mission objectives.