<DOC> [110 Senate Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:35530.wais] S. Hrg. 110-74 NOMINATION OF HOWARD C. WEIZMANN ======================================================================= HEARING before the COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED TENTH CONGRESS FIRST SESSION ON THE NOMINATION OF HOWARD C. WEIZMANN TO BE DEPUTY DIRECTOR, U.S. OFFICE OF PERSONNEL MANAGEMENT __________ MAY 1, 2007 __________ Available via http://www.access.gpo.gov/congress/senate Printed for the use of the Committee on Homeland Security and Governmental Affairs ______ U.S. GOVERNMENT PRINTING OFFICE 35-530 WASHINGTON : 2007 _____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512ÿ091800 Fax: (202) 512ÿ092250 Mail: Stop SSOP, Washington, DC 20402ÿ090001 COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS JOSEPH I. LIEBERMAN, Connecticut, Chairman CARL LEVIN, Michigan SUSAN M. COLLINS, Maine DANIEL K. AKAKA, Hawaii TED STEVENS, Alaska THOMAS R. CARPER, Delaware GEORGE V. VOINOVICH, Ohio MARK L. PRYOR, Arkansas NORM COLEMAN, Minnesota MARY L. LANDRIEU, Louisiana TOM COBURN, Oklahoma BARACK OBAMA, Illinois PETE V. DOMENICI, New Mexico CLAIRE MCCASKILL, Missouri JOHN WARNER, Virginia JON TESTER, Montana JOHN E. SUNUNU, New Hampshire Michael L. Alexander, Staff Director Kristine V. Lam, Research Assistant Jennifer L. Tyree, Counsel, Oversight of Government Management, the Federal Workforce, and the District of Columbia Subcommittee Brandon L. Milhorn, Minority Staff Director and Chief Counsel Jennifer L. Tarr, Minority Associate Counsel Theresa Prych, Minority Professional Staff Member, Oversight of Government Management, the Federal Workforce, and the District of Columbia Subcommittee Trina Driessnack Tyrer, Chief Clerk C O N T E N T S ------ Opening statements: Page Senator Akaka................................................ 1 Senator Voinovich............................................ 3 WITNESS Tuesday, May 1, 2007 Howard C. Weizmann to be Deputy Director, U.S. Office of Personnel Management: Testimony.................................................... 5 Prepared statement........................................... 17 Biographical and professional information.................... 21 Letter from U.S. Office of Government Ethics................. 29 Responses to pre-hearing questions........................... 30 Responses to post-hearing questions.......................... 53 NOMINATION OF HOWARD C. WEIZMANN ---------- TUESDAY, MAY 1, 2007 U.S. Senate, Committee on Homeland Security and Governmental Affairs, Washington, DC. The Committee met, pursuant to notice, at 9:38 a.m., in room 342, Dirksen Senate Office Building, Hon. Daniel K. Akaka, presiding. Present: Senators Akaka and Voinovich. OPENING STATEMENT OF SENATOR AKAKA Senator Akaka. The hearing will come to order. I want to say good morning to all of you, family and friends as well. Today, the Committee on Homeland Security and Governmental Affairs meets to consider the pending nomination of Howard Weizmann to be Deputy Director of the Office of Personnel Management. Mr. Weizmann is a native of Ohio and a graduate of Ohio University and the University of Michigan. He also earned a law degree from Georgetown University. Mr. Weizmann is a former executive of Watson Wyatt, a global consulting firm focusing on human capital and management issues. He currently heads the Private Sector Council at the Partnership for Public Service, which brings leaders from America's top companies together with Federal decisionmakers to improve the management, efficiency, and productivity of Federal agencies. I want to welcome you, Mr. Weizmann, and your family and to congratulate you on your nomination. I know your family is here, for the record and for those who are present, may I ask you to introduce your family. Mr. Weizmann. Thank you, Mr. Chairman. This is my lovely wife of 37 years, Jane Weizmann. This is my soon-to-be son-in- law, Ernest Voyard, my daughter, Brooke Weizmann, and my daughter, Haley Weizmann, and they are delighted to be here, I can assure you. Senator Akaka. Thank you so much, and welcome to your family here. I believe each of us is here today because we care a great deal about improving the strength of the Federal workforce and supporting its ability to meet the various missions of all agencies. If confirmed, you will be central to carrying out Director Springer's operational plan and ensuring implementation of human capital strategies throughout the Federal Government. Senator Voinovich and I have dedicated a considerable amount of time to addressing the human capital challenges in the Federal workforce, and I would tell you that I consider Senator Voinovich as a leader in that respect. We have listened to the needs and concerns of employee and management groups. We have heard the Administration's requests to provide greater workforce flexibilities to agencies and their proposals to carry out the largest civil service reform effort in more than 25 years. If confirmed, your role with OPM is, no question, vital to the success of all of our collective efforts. The Federal Government is at a pivotal time in its history. Not since the Civil Service Reform Act of 1978 has its workforce undergone so many fundamental reforms. The new personnel systems underway at the Department of Defense and the Department of Homeland Security have struggled to get off the ground. Federal courts have questioned the fairness of the appeals system at both agencies and have enjoined each agency's regulations relating to collective bargaining. Furthermore, both DHS and DOD, in addition to the Senior Executive Service, are implementing new pay-for-performance systems. My concerns with pay-for-performance are well known. As agencies continue to face diminished budgets that impact employee training and incentive programs, I fail to see how agencies will be able to properly train managers and employees on how to measure performance and make meaningful distinctions in performance, nor do I see how they will guarantee sufficient funds for performance bonuses or pay increases. Without strong training, there are no guarantees that employees will have fair and transparent appraisal systems. We need to get these systems right before we can move forward with broad sweeping reforms at other agencies. Another issue facing the Federal Government is the fact that a generation of talented, knowledgeable, and dedicated civil servants is on the brink of retirement. A wave of new employees with similar aspirations but new expectations is ready to take on the call to service. The upcoming generation may not expect to work in the Federal Government for their entire career. It is the responsibility of OPM to help agencies implement management flexibilities and create an attractive work environment. One reason I feel so strongly about this is that Senator Voinovich and I have successfully moved forward a number of significant workforce flexibilities. Unfortunately, as the Government Accountability Office recently reported, the use of these flexibilities by agencies is uneven. It will be up to you and Director Springer to help agencies find the ways of best utilizing these tools. I am sure your many years of private sector experience will enhance our public sector management, and I am encouraged by your strong commitment to address the human capital challenges within the Federal workforce. The Federal Government is 1.8 million employees strong. In this role, you will be responsible for their rights, their paychecks, and their effectiveness as a workforce. I look forward to working with you and hope that we can work together to address the challenges of the modern Federal workforce. Before I call on my good friend and partner on human capital issues, Senator Voinovich, for his statement, I just want to note that Senator Voinovich has been, and I repeat it again, a leader in these issues. I know that he is very interested in the work of OPM and your views on how to make the Federal Government an employer--and he likes to use this--an employer of choice. Senator Voinovich. OPENING STATEMENT OF SENATOR VOINOVICH Senator Voinovich. Thank you, Senator Akaka. I really appreciate being a part of this hearing. As you know, the two of us have worked for a long time on oversight of the Office of Personnel Management and have been somewhat inspired by the fact that Linda Springer seems to be doing some of the things that we would like her to focus on. We do know that she needs help. Mr. Weizmann, thank you very much for your willingness to step forward at the end of an administration. I am interested in learning why you decided to step down from a private sector job to work for the government. Maybe you watched and said, instead of continuing to just watch, maybe I can go over there and help Linda Springer. It will be interesting to hear your testimony. I want to thank your family for the sacrifices that you are going to make and the hours that you are going to put in, particularly since I know that Linda is going to not wind down, but wind up. Again, I want to thank you for your interest in public service. Next week is Public Service Recognition Week, and I hope, Mr. Chairman, we can move the nomination along expeditiously so Mr. Weizmann can celebrate being part of the team. I think you know that the Federal workforce has an increasing number of employees eligible to retire. As Senator Akaka has mentioned, we are implementing the new performance management and pay systems for the Senior Executive Service. Although we have had some testimony that it has been uneven, I will say, Senator Akaka, that the Defense Department's conversion of employees to NSPS has been good to date. I have now visited several bases in Ohio to discuss NSPS, and the feedback is that it is very well received because of the training provided to employees. We are hoping we can get a report back from OPM on some of the unevenness that we have observed with the implementation of the new personnel system for the Senior Executive Service. We would like to get those wrinkles ironed out because if we don't, I am worried the SES system will cast a bad reflection on what we are trying to get done. Mr. Weizmann, OPM ought to be the model for the rest of the government in terms of human resources and personnel practices. The Director has worked closely with this Committee and has demonstrated her commitment to leading the agency through transformation. OPM has been working with GAO on a series of reports to identify OPM's management challenges. OPM has also involved its employees and stakeholders in publishing a strategic plan with precise goals and target completion dates. Director Springer is very proud of the strategic plan, and I have been given the strong impression from the people that Director Springer works with that the plan was developed by them, not something that Director Springer did on her own, which I think is real important. Mr. Weizmann, I am impressed with your background. You are a Bobcat, and my gosh, I have got to be for you. The Bobcat is Ohio University's mascot. [Laughter.] Mr. Weizmann, we are very happy to have you here today and appreciate also your participation and your extracurricular activities, particularly your leadership in your synagogue. [The prepared statement of Senator Voinovich follows:] PREPARED STATEMENT OF SENATOR VOINOVICH Good morning, and thank you Mr. Chairman. It is a pleasure to be here today to hear the testimony from Howard Weizmann, the President's nominee for Deputy Director of the Office of Personnel Management. Mr. Weizmann, congratulations on your decision to join the honorable profession of public service. As we all know, next week is Public Service Recognition Week. I hope we can move your nomination expeditiously so you can be part of this select group of Americans during next week's celebrations. The Federal civil service is in the process of a significant transition. We all know too well that the majority of the civil service soon will be eligible to retire. This will leave the government with a considerable knowledge gap within agencies and poses an immense succession planning challenge. In addition, agencies are implementing new performance management and pay for performance systems for the Senior Executive Service. The Department of Homeland Security and Department of Defense are designing new personnel systems to meet their national security missions. OPM has a vital role to play in ensuring agencies are making strategic human capital management a priority. In addition, OPM has an important operational responsibility to work with Federal departments and agencies to ensure reforms of performance management systems provide employees a fair and transparent system, with meaningful opportunities to enhance communication and improve individual performance. These strategic human capital management challenges also exist for OPM itself. As OPM's role in the Federal Government continues to evolve, its workforce must be structured to tackle these challenges. OPM Director Linda Springer has worked closely with this Committee and has demonstrated her commitment to leading the agency through the transformation. For example, OPM has been working with the Government Accountability Office on a series of reports to identify the management challenges within OPM itself. OPM also has involved its employees and stakeholders in publishing a strategic plan with precise goals and target completion dates. Mr. Weizmann, I believe your background, including your experience in human resources, would be a great asset to OPM as it prepares for the challenges that lie ahead. Thank you Mr. Chairman. Mr. Weizmann. I am delighted to be here, and I thank you. Senator Akaka. Thank you, Senator Voinovich. Mr. Weizmann has filed responses to biographical and financial questionnaires, answered pre-hearing questions submitted by the Committee, and had his financial statements reviewed by the Office of Government Ethics. Without objection, this information will be made a part of the hearing record, with the exception of the financial data. They are on file and available for public inspection at the Committee offices. Our Committee, Mr. Weizmann, has rules that require that all witnesses at nomination hearings give their testimony under oath, and so I ask you to rise and take the oath. Please raise your right hand. Do you solemnly swear that the testimony you are about to give this Committee is the truth, the whole truth, and nothing but the truth, so help you, God? Mr. Weizmann. I do. Senator Akaka. Thank you very much. Mr. Weizmann, you may proceed with your statement. TESTIMONY OF HOWARD C. WEIZMANN, NOMINEE TO BE DEPUTY DIRECTOR, U.S. OFFICE OF PERSONNEL MANAGEMENT Mr. Weizmann. Mr. Chairman, thank you. I want to thank you and Ranking Member Voinovich and the Committee for holding today's hearing. I also want to thank the Committee staff for the courteous and professional manner with which I have been treated throughout this process. I want to thank President Bush for the honor of being nominated as Deputy Director of the Office of Personnel Management. Finally, I want to thank OPM Director Linda Springer for her support throughout this process. As noted, one does not have to be an expert to recognize that demographic trends will dramatically change the face of the Federal workforce. It is no longer news that the Federal Government faces a massive challenge as increasing numbers of older, experienced employees become eligible to retire or leave over the next few years. There is also a widespread belief that in the near future, there will be a lack of skilled workers affecting both the private and public sector. In sum, the demand for qualified workers is likely to exceed the supply. In this emerging world, Federal employers will have to effectively compete for talent with the private sector. To do so, we need to change widely held perceptions about Federal employment. Surveys indicate that college-age individuals believe that the private sector offers greater opportunity than Federal employment. Private industry also inherently possesses more flexibility than government to structure positions or to employ foreign nationals, avenues generally limited or closed to Federal employers. But crises also present opportunities, and those are the ones that really do excite me. The talent crunch creates a burning platform for forcing Federal employers to establish new career options for existing employees, new ways to recruit prospective employees, and new challenges to existing ways of doing things. This Committee has helped by creating hiring flexibilities that fast-track certain potential employees or that provide tools, such as educational loan relief, to attract talented workers. As President of the Private Sector Council, part of the Partnership for Public Service, my organization worked closely with OPM to develop OPM's online hiring tool kit, which highlights ways to raise the effectiveness of the Federal recruiting process. I know OPM has also suggested that agencies use a 45-day target benchmark, measured from the closing date of the announcement to the date the offer is formally made, to speed up the process. The challenge is not to fill empty seats with people, but to fill those seats with the right people. If confirmed in this position, I will work with Director Springer, OPM staff, and this Committee to help address the difficult issue of how to attract and retain Federal talent. I will do my best to support the new career patterns initiative, which may help to create more flexible work environments, appealing to workers at different career stages. I am also looking forward to exploring other ways to address the looming talent shortfall. The future Federal workforce will be a mosaic of different generations and work arrangements. Experts tell us that younger workers entering Federal service will be better educated, with more diverse backgrounds than in the past. They will be used to instant communication and impatient with people who refuse to adapt. They will be optimistic, hard working, and dedicated. They will be looking for opportunities to grow, but less likely to commit to a career with a single employer. Retaining experienced Federal employees and attracting recent Federal retirees will also be a priority. Enticing these workers will not only require interesting work and flexible schedules, but financial incentives and arrangements that do not penalize retirees returning to work. To address the future shortage of management and technical expertise, the Federal service will also need to rely on experienced knowledge workers, attracted to Federal employment from active or retired careers in the private sector. Skilled veterans are also another important source of future Federal employees. The new Federal manager will have to be skilled at managing this diversity. They need to be supervisors, leaders, mentors, referees, negotiators, and contract managers. In my view, these demands will require greater investment in the selection and training of future Federal leaders. We will need to use OPM's good offices, working with agency partners, to support efforts to enhance managerial skills. The Federal Government has also not been immune from the technological winds of today. I know that Director Springer is directly involved in supervising the automation of OPM's retirement system, using modern technology to improve the delivery of annuity payments to Federal retirees. The E- Government initiative is another dramatic effort to improve government effectiveness through information management technology. The evolution to automated benefit administration, online training, E-payroll systems, and other initiatives are well on their way to increasing the efficiency of the Federal processes. If confirmed, I would look forward to helping Director Springer advance OPM's efforts in this regard. Everyone wants an effective, results-driven Federal service. In 1993, this Committee and Congress sought to underscore these expectations by passing the Government Performance and Results Act, or GPRA. The Act mandated, among other things, a new focus on results, service quality and delivery, and customer satisfaction in the achievement of program objectives. The President's Management Agenda and the Program Assessment Review Tool have taken GPRA a step further by establishing the means to measure progress in a number of critical areas consistent with the Act. I believe that OPM takes this responsibility under the PMA Strategic Management of Human Capital component seriously and that OPM monitoring of agency performance can and has made a real difference in helping agencies improve their human capital management capabilities. I believe Director Springer has also gone a long way toward enhancing opportunities for agency coordination through her recent reorganization of the Chief Human Capital Officers Council. I look forward to learning more about OPM's and other agencies' efforts. Establishing metrics to measure results, while a necessary step, is not sufficient to ensure effectiveness. The challenge is to use these measures to focus agency efforts to create program success. Performance-based pay initiatives directly support this cultural shift. As Director Springer has previously noted, performance-based pay is not a particularly new idea. The private sector has successfully administered such systems for years. I am also aware that OPM has identified more than 90,000 Federal employees, not including those covered by the DHS and DOD legislation we referred to earlier, as being covered currently by some form of performance-based pay system. Some of these programs date from as early as 1980 and are generally regarded favorably by a wide variety of employees. I believe that OPM has worked hard to promote and refine performance- based initiatives. If confirmed, I look forward to being of whatever assistance I can to support these efforts. In the end, we cannot forget that when we talk about the Federal workforce, we are really talking about people. While attitudes may have changed, some things remain constant. People everywhere respond to incentives and recognition. People fear the uncertainties of change and value employers who meet their needs for income and benefit security. To ensure an effective civilian workforce requires addressing these attributes. OPM needs to support agency efforts to reward employees for their contributions to agency success. We should encourage efforts to communicate the reasons for and the impact of change and to help those who are affected by it. In addition, OPM has direct responsibility to ensure that Federal benefits address the needs of Federal employees at a reasonable price. I recognize that your support is also critical to ensuring the effectiveness of these efforts. In preparing my comments, I looked up synonyms for the word ``deputy.'' I found that a deputy is an assistant, a representative, a surrogate, an agent, an emissary, and an envoy. As Deputy Director, it would be my job to act in many or all of these capacities to help Director Springer achieve the ambitious goals she has set for OPM. I am also aware that, if confirmed, the relatively short time horizon alloted to me will not be sufficient to substantively address all the issues raised by the currents shaping the future Federal workforce. My more modest aim would be to work with Director Springer to identify areas where my experience would be helpful. My goal is to help the Administration make a lasting contribution toward advancing solutions to some or perhaps many of these issues. If confirmed, you have my promise that I will be open, honest, and direct in dealing with this Committee specifically and the Congress in general. I will use my best efforts to work with all interested parties to craft useful solutions to the complicated issues of the day. I believe we all want the same thing, an effective, results-driven workforce populated by talented individuals who are proud to be called Federal employees. Mr. Chairman, I look forward to any questions you or other members of the Committee may have. Thank you. Senator Akaka. Thank you very much, Mr. Weizmann, for your statement. Let me begin by asking you some standard questions of the Committee. First, is there anything you are aware of in your background that might present a conflict of interest with the duties of the office to which you have been nominated? Mr. Weizmann. As I mentioned to the Committee staff and I have answered in the written questions, as well, my wife, who is sitting to my right, does do work for the Federal Government and has in the past done work for OPM. I have signed an ethics agreement which has precluded certainly her working for OPM or directly communicating with OPM. At the same time, I have also agreed to recuse myself from any decisions involving Watson Wyatt while I am at OPM, where I used to work. Senator Akaka. The second question is do you know of anything, personal or otherwise, that would in any way prevent you from fully and honorably discharging the responsibilities of the office to which you have been nominated? Mr. Weizmann. No, I do not, sir. Senator Akaka. Third, do you agree without reservation to respond to any reasonable summons to appear and testify before any duly constituted committee of Congress if you are confirmed? Mr. Weizmann. Yes, Mr. Chairman. Senator Akaka. Thank you very much for your responses. As you know, Mr. Weizmann, the previous OPM Deputy Director was charged with overseeing the Combined Federal Campaign and conducting outreach with veterans' service organizations. Have you and Director Springer discussed whether you will play a similar role at OPM, and if so, what are your goals in this area? Mr. Weizmann. Mr. Chairman, Director Springer and I had a conversation in which I generally offered to fulfill the same duties that the former Deputy Director was doing. At this point, I do not think we have finalized anything specifically. And, of course, these are programs that I believe in, as well, and I would make whatever effort I could to the best of my ability to support the success of these programs. Senator Akaka. Thank you. For years, Congress has been told of an impending retirement tsunami bearing down on the Federal Government. The potential loss of thousands of Federal employees over the next 5 to 7 years could have a major adverse impact on Federal programs. What is your assessment of the Federal Government's preparedness for this retirement wave and what recommendations do you have for improving Federal agencies' preparedness? Mr. Weizmann. Mr. Chairman, I can really only bring my experience in the private sector to bear and my observations from what I have read and certainly my service at the Private Sector Council in observing what is going on, and my knowledge is really, of necessity, limited in terms of the scope of agencies. I think there are--in my experience, or my understanding--some agencies better prepared than others, and yet I think there is a full recognition, at least from the Federal employers or the executives that I have spoken with, that there is an appreciation that, in particular areas, this is an issue. The good thing about this, I think, is that it is forcing all human resource professionals within the Federal service to recognize that efficiencies need to be established in hiring people and incentives better used to attract willing or interested potential employees. I noted in today's newspapers, for example, that the Federal Student Loan Repayment Program utilization among various Federal agencies has been, to date, increased significantly and been very successful in terms of attracting individuals to the Federal service. My understanding is that this Committee had a very instrumental hand in establishing that flexibility, in particular. Those kinds of efforts to fast-track employees into the Federal service, but also to identify employees who are the appropriate ones to come in, I think are really critical. People will retire. In every organization, it happens, whether it is in the private sector or public sector. It is what we do to address the future that is most important. By bringing in talented employees at all levels, some with more experience, some with very little experience, and grooming them and training them into the Federal service, I think we can address the tsunami about which you have spoken. Senator Akaka. OPM is promoting new career paths or initiatives in the Federal Government whereby Federal employees no longer work a 40-hour week or work for 20 years. Rather, efforts are focused on part-time or temporary work. What changes in the Federal Government's benefit package do you believe are needed to recruit individuals to work in these new career patterns? Mr. Weizmann. I do not know that I am in a position to tell you what changes need to be made because I am not yet very familiar with the benefit package of the Federal Government. In looking at survey responses, generally, the Federal Government fares very well when compared to private sector with regard to both retirement and health benefits. There are benefits within the Federal program that are what we refer to, in human resources terms, as security benefits, and those really go to the issue of health care and also retirement. Retirement benefits, depending on the kind of plan, may retain employees, but generally employees or potential employees do not come to an employer, in my experience, for the benefits. They come to be a part of an exciting organization with a dynamic mission. In some instances, it is pay that attracts them, but pay, I will tell you, is probably one of the over-rated issues, certainly among private industry in terms of attracting people. Overall, I would have to look at the benefit package to see if there is more that can be done or more that should be done in making that benefit package attractive to potential employees. Senator Akaka. Only last year, OPM had an initiative to have more flexible work arrangements and to make them more attractive. I think they have been working on that. Last year, OPM closed Hawaii's field office in Honolulu and also along with some other regional offices. I believe that having OPM's presence in a State with nearly 50,000 Federal employees and retirees is critical given its geographic location and also other Federal employees in the Pacific in addition to the 50,000. For example, the President's proposal to replace a non- foreign COLA with locality pay, I believe that an OPM presence could better respond to questions from employees throughout the State of Hawaii and the Pacific, which in turn allays concerns about the proposal. How do you propose for OPM to support the personnel needs of Hawaii Federal agencies when the nearest field office is 2,500 miles away? Mr. Weizmann. Mr. Chairman, customer service, of course, is tremendously important. I am not really familiar specifically with the issues and the concerns that led to the closing of the office in Hawaii. However, I am eager to learn more should I be confirmed. I know this is an issue, Mr. Chairman, that is important to you, and as a result, it is something that I would be pleased to look at further. Senator Akaka. Thank you very much. Senator Voinovich. Senator Voinovich. Thank you, Mr. Chairman. What caused you to decide to give up your responsibility as chairman of the Private Sector Council and come to work at OPM? Mr. Weizmann. At a very general level, I think the Federal Government is an exciting place to be, and one of the things I have come to appreciate at the Private Sector Council is the amount of good that can be done by the Federal Government in a way that the private sector can never match. So at a very general level, I was impressed, quite frankly, in working at the Private Sector Council, by the dedication and the intelligence of the Federal employees and the Federal executives with whom I worked. Senator Voinovich. Did Director Springer recruit you? [Laughter.] Mr. Weizmann. She knew I was interested in the directorship at one point, and she knew of my interest in that, and she ultimately was appointed as Director. White House personnel actually coordinated with her and called me to ask if I would be interested in this position. And to be honest with you, on a very personal level, one of the things that attracts me about this position at OPM is Director Springer. The comments that you made earlier, Senator, are very telling. I think she is a very good leader. I think she has done things that I think will lead ultimately to success and a much more effective agency. And I think it would be a great opportunity to work with her. At the same time, I have to say that I am coming to the end of my career, more or less. I may have another job after this, but my wife tells me not too many more. Senator Voinovich. That is what my wife has been telling me for the last---- [Laughter.] Senator Akaka's wife, I am sure, has been telling him the same thing, but here we are. [Laughter.] Mr. Weizmann. I have to tell you that I also do feel a sense of giving back. To the extent I have any expertise or have developed any experience that is useful to the Federal Government, I would like to do that. I would like to make a difference. Senator Voinovich. That is good. Have you talked to Director Springer about your role as Deputy Director and how she is going to take advantage of your talents to enhance her ability to get the job done? Mr. Weizmann. We have generally talked about the issues and about what she is dealing with. I certainly have read the strategic plan that she has put forth. There are areas in which I am interested, and I have expressed those areas of interest to her, and basically what we have agreed to, at least until the actual confirmation, rather than making specific assignments or addressing which areas I would go into, is to wait until after the confirmation. I will tell you the areas that do interest me have to do with workforce management. Both the planning, the recruiting, the hiring processes are of great interest to me. I have some expertise in the use of technology in the workplace and the kind of impact that has. I think I could perhaps lend some expertise in that area, as well. Those areas are ones that I mentioned to Director Springer, and we just have not made any final decisions as of yet. Senator Voinovich. How much help can and should the private sector give to a Federal agency? I know when I was mayor and governor, we used our Operations Improvement Task Force to bring the private sector in, asked them to spend time with people who had worked in the government for a long time, and get their best ideas on how we could improve. Have you given any thought to some of the management challenges that need to be addressed within our Federal Government and how you might be able to jump-start reform, or is there some reservation about having the private sector become involved? I am referring to pro bono assistance. Mr. Weizmann. Certainly. I understand. I think there are things that the Federal Government can learn from the private sector for instance, with recruitment. As a senior VP of HR at one organization, I spent a good deal of time on the recruiting effort and trying to identify talent and trying to retain talent during the dot-com era. I think there are useful approaches that could be adapted to the Federal Government. There are some things that are different. The number of stakeholders, for example, is much broader in the Federal Government and the number of people that you really do need to bring into the effort is much greater. As a consequence, I think things often take more time in the Federal Government than you would find in the private sector. Senator Voinovich. As governor of Ohio, I had Xerox come in to help establish Total Quality Management in State Government. I convinced McKinsey and Company to examine the Ohio Bureau of Workers' Compensation and come back with a pro bono recommendation on how it could be reformed. Are you able to do this, or are there laws that would make this a conflict of interest? Mr. Weizmann. My understanding is that, by law, I am not technically allowed to interact with the Private Sector Council for a year after my employment there because they are my former employer, technically. I do not know how substantial an impediment that really is. The short answer is yes, in two areas. Again, I think the private sector has developed a lot of expertise in the recruitment area. I also think one of the understated areas that needs to be at least focused on is the impact of technology on Federal processes. It is one thing to adopt a new retirement system. It is another thing to scope out how you get information to people, what your expectations of them are in terms of self-service. The same thing with enterprise-wide financial systems. There is a lot of expertise that I know personally where I could reach out to those folks. So from that standpoint, I think there is a lot the private sector has to offer. At the same time, the private sector folks are very skeptical about government, and the issues for government are different to some extent. But those issues really do coincide. Senator Voinovich. Will we have a second round? Senator Akaka. Yes, we will do a second round. Senator Voinovich. OK, good. Thank you. Senator Akaka. Thank you very much, Senator Voinovich. Let me reach out and ask you about the Human Capital Survey of the Federal Government. In your pre-hearing questions for the Committee, you talked about the competitive environment for recruiting talented workers---- Mr. Weizmann. Yes. Senator Akaka [continuing]. Specifically the need to recruit a diverse and talented workforce. What do you see as the government's biggest challenge to hiring diverse talent? Mr. Weizmann. There are a variety of levels, Mr. Chairman. One is the image of the Federal worker, I think, which really has suffered over the last 10 to 15 years. I am old enough to remember the John F. Kennedy years and the call to service that was placed on potential employees and remembering the sense of real dedication. Government at that time, I think, really did begin to focus on attracting the best and the brightest. That is not to say that we do not have in the Federal Government the best and the brightest today; it is just that the image, at least according to the surveys that I am aware of and also just anecdotally, of Federal employment is not what it ought to be. So at that level, there is an image issue. Beneath that level, there are very technical issues, which is that it takes too long to get people into Federal service at all levels, and I am not just talking about Presidential appointments, but at all levels, it takes, in many cases, way too long from the date that people first express an interest to the date they are actually made an offer to join the Federal service. I think there is also not enough marketing for a variety of really specialized talent that I think that could be obtained. For example, in the area of science or engineers or other kinds of professionals, what we call knowledge workers, I think the Federal Government in that instance, I think, does not do as good a job as I have seen in the private sector in terms of going to the best schools and attracting really talented people. People still come because they are interested in what the Federal Government does, and quite frankly, there is no other place in the world where you can have the scope of activities as a scientist or an engineer or even, quite frankly, as a manager. One curious statistic, I think, was a survey done by the Council for Excellence in Government which indicated that managers, people who are mid-career, who might, in fact, be attracted to the Federal service, by a very substantial margin are not attracted to Federal service, and I am curious as to why. But I think you, Senator Voinovich, and you, Mr. Chairman, have addressed quite eloquently the issue of the importance of having trained managers to supervise performance-based systems, and I think that is a critical need. So that is another talented population that I think that we should really focus on and try to get more talented managers into the Federal service. Senator Akaka. Before I move to a training question, I just want to say that in the Human Capital Survey of Federal Government, it shows that the African-Americans were low in SES, and also Hispanics, across the government. I raise that just as another part of this diverse kind of employees for the Federal Government that we need to pay attention to. As you may know, Mr. Weizmann, I recently introduced the Federal Supervisor Training Act, S. 967, on March 22, 2007, which is supported by the Federal employee unions, the Government Managers' Coalition, and the Partnership for Public Service. It is to require mandatory supervisor training for all managers on a recurring basis. In order to accomplish this, OPM will need to reach out to all agencies and provide them with the resources necessary to meet the training requirements. The question is, what steps do you think OPM needs to take to ensure supervisors are receiving proper training? Mr. Weizmann. Mr. Chairman, until I am confirmed, I do not know what specific steps I am prepared to recommend. I am also not directly familiar with the legislation that you introduced. Having said that, no performance management system anywhere can function without trained supervisory personnel who understand both the nuances of management and are able to address the issues I outlined in my statement. And so in general, I would think that any help that this Committee could do, or Congress, to support the whole effort around training would be quite useful. Having said that, should I be confirmed, I will look into those issues you have raised to see, in fact, what OPM's responsibilities would be under your proposed Act and what our relations are with the various agencies so that we can foster that kind of effort. Senator Akaka. As the nominee to be Deputy Director of OPM, I assume you saw the Partnership for Public Service 2007 rankings---- Mr. Weizmann. Yes, I did. Senator Akaka [continuing]. Of the best places to work in the Federal Government. In the 2007 rankings, OPM placed 25 out of 30 large agencies. In regard to training and development, OPM placed 28 out of 30. As OPM is to be a leader to human capital management, I am deeply concerned by these survey results. Do you have any idea why OPM ranked so low? Mr. Weizmann. Well, with regard to the first statistic that you quoted, I am also aware that if you take the populations of OPM that were in existence at the time that the survey was last done in 2004 as opposed to this 2006 survey, excluding the investigative services that moved over to OPM from DOD, it is my understanding that the improvement was actually better than any other agency referenced in the survey. That said, the second statistic you quote, and there are other statistics, I believe, in there concerning OPM, there are still issues to be addressed, not only the specific issue that you identified in terms of training and development, and that is clearly an area that I do believe in and I think is very important, but also to look at various segments of OPM and to see what the issues are that individuals have, whether it is uncertainty, whether it is a leadership issue, or whatever issues there might be and work to correct those. In my own experience, I have been with organizations that, when I have taken them over as a manager, morale was low or a variety of issues for a variety of reasons, and I have worked hard to address those and successfully, I think. One area was recognized. We were named one of the best places to work in Washington, for an organization of about 325 people when I was at Watson Wyatt. A lot of it had to do with structural issues. A lot of it had to do with leadership. I believe in Director Springer. I think that over time leadership and that sense of direction and that sense of fairness ultimately will bring people's interest up. At the same time, there are specific issues like training and so forth that I would like to look at more should I be confirmed. At this point, I am not prepared to discuss each issue, but certainly there are indications that this is an area that needs to be looked at more. Senator Akaka. Thank you very much. Senator Voinovich. Senator Voinovich. Mr. Weizmann, once confirmed you have a year and a half or so to accomplish reform before the transition to the new Administration. To help guide this Committee's work in the future, it seems to me OPM should submit a list of reforms to the Committee and the Administration that will need to be given continued attention. Mr. Weizmann. Right. Senator Voinovich. We want to see them continued. It would, I think, help Senator Akaka and me to know the areas that need to be given continued attention so when the new team is in place, we can be part of the process of making sure that some of these reforms are carried out. I know that it takes a long time for transformation to occur, and I would just hate like heck to have, for example, your strategic plan left undone. I would also like you to look at the extent to which agency-specific and government-wide flexibilities that we have legislated are being utilized. For instance, agencies have made greater use of student loan repayment. Senator Akaka and I have introduced legislation to make student loan repayments nontaxable. Another topic that Senator Akaka and I are interested in is training. When I first came to the Subcommittee, we asked agencies how much money they were spending on training, which is important to help employees grow in their jobs. I question where we are in terms of providing training and what percentage of agencies' budgets are being used for training. I continue to be interested in the concept of a Chief Management Officer. Senator Akaka and I are working on GAO's high-risk list, with a focus on DOD supply chain management and the security clearance process. Our oversight work has led us to question whether these agencies have the capacity to continue transformation. Within the Department of Defense, I believe we need a Chief Management Officer to be in charge of transformation. Absent a strategic plan, the transformation will continue to have problems. Again, pay-for-performance is important. Senator Akaka and I know that the unions don't want it. The biggest experiment in pay-for-performance in the Federal Government today is at TSA. We must be sure the system, known as PASS, is working well at each airport. These are some of the concerns that I have, and I really hope that you would give some consideration to them. Mr. Weizmann. Senator, all your concerns are concerns that I share. You asked me earlier about why I wanted to take this position. I am very concerned about not specifically my legacy, and I am not speaking about Republican or Democrat legacies, either. This Committee and this Congress, at least since 1993, if not before, has set forth a very direct statement, I think, of the kind of Federal service that we would all like to have. It is very important to me that in those critical areas you identify, whether it is pay-for-performance or whether it is just improving the training, that any human resources system be like a garden. If you walk away from a garden, it gets overgrown tomorrow. You need continuous training of people in not only management skills but just skills to do their job every day. If you bring people in, including older, more experienced workers, as well, and train them, it is important that we keep making progress. It is undeniably spotty in places, and I think we need more information, and certainly if I am confirmed, I would like to know more about why some of these things are successful and some are not. At the Private Sector Council, we are currently working with OMB to look at agencies who have been very successful in linking performance to program success, and there are some that are more successful than others, and we are trying to set up a system by which we can involve the agencies who have been successful to talk to the agencies who are struggling with those kinds of things to really have that kind of information shared. Again, should I get to OPM, I would hope that we would be able to foster that kind of environment where there is a kind of information sharing between successful agencies and those agencies that are struggling to make sure the improvement is really over the entire Federal Government. But the important thing to me, the most important thing is not to retreat from some of the good work that has been done by this Committee, by Congress, by this Administration, and by prior Administrations to making the Federal service a much more effective place to be. Senator Voinovich. Thank you. Senator Akaka. Thank you very much, Senator Voinovich. I want to thank you, Mr. Weizmann, for responding so well to our questions. I have further questions that I will submit for the record, which we will submit to you in writing. The hearing record, let me say, will remain open for 1 week for Members of this Committee to submit additional statements or questions that they may have. I want to thank you and your family for being here today. Senator Voinovich and I are of the same mind, and we will make every effort to move this confirmation process as expeditiously as we can here. Then we will have a vote on this in the near future, the vote on your nomination and confirmation. Do you have any final words? Senator Voinovich. No, Mr. Chairman. Senator Akaka. With that, again, thank you so much, and I wish you well in all that you do. Mr. Weizmann. Thank you, Mr. Chairman. Thank you, Senator Voinovich. Senator Akaka. This hearing is adjourned. 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