[Federal Register: April 28, 2008 (Volume 73, Number 82)]
[Rules and Regulations]
[Page 23011-23049]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ap08-14]
[[Page 23011]]
-----------------------------------------------------------------------
Part II
Office of Personnel Management
-----------------------------------------------------------------------
5 CFR Part 250
Human Resources Management in Agencies; Final Rule
[[Page 23012]]
-----------------------------------------------------------------------
OFFICE OF PERSONNEL MANAGEMENT
5 CFR PART 250
RIN 3206-AJ92
Human Resources Management in Agencies
AGENCY: Office of Personnel Management.
ACTION: Final Rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is issuing final
regulations to implement certain provisions of the Chief Human Capital
Officers Act of 2002, which set forth new OPM and agency
responsibilities and requirements to enhance and improve the strategic
management of the Federal Government's civilian workforce, as well as
the planning and evaluation of agency efforts in that regard. Further,
we are including a plain language rewrite of the subpart titled
``Authority for Personnel Actions in Agencies.''
DATES: Effective Date: The regulations are effective on May 28, 2008.
FOR FURTHER INFORMATION CONTACT: Charles D. Grimes by phone at 202-418-
3163, by FAX at 202-606-2838, or by e-mail at pay-performance-policy.
You may contact Mr. Grimes by TTY on 202-418-3134.
SUPPLEMENTARY INFORMATION: On May, 23, 2006, the Office of Personnel
Management (OPM) issued proposed regulations (71 FR 29593) to change 5
CFR part 250, to read ``Human Resources Management in Agencies'' to
reflect current usage, to make a plain language revision in subpart A,
and to add regulations on strategic human resources management as new
subpart B.
Case for Action
Section 1304 of the Chief Human Capital Officers Act (CHCO Act),
which was enacted within the framework of the Homeland Security Act
(Pub. L. 107-296), and codified at 5 U.S.C. 1103(c), authorizes OPM to
develop an assessment system, including metrics, for agency human
capital management. Rather than establish a new reporting requirement,
OPM elected to incorporate the CHCO Act requirements within the newly
established Human Capital Accountability System and Human Capital
Management Report (Accountability System).
To accommodate the accountability assessment, OPM has modified the
existing 5 CFR part 250. Subpart A, which establishes requirements for
delegations of personnel authority to agencies, has been rewritten in
plain English. Agencies will continue to operate in an environment of
delegated personnel authority and will be required to ensure merit
system accountability.
The new subpart B details both agency and OPM responsibilities
under the CHCO Act as well as the fundamental requirements of the
Accountability System.
OPM is cognizant of the burden placed on agencies by reporting
requirements, and the regulations mitigate against increasing that
burden through the incorporation of existing reporting requirements
(e.g., PMA scoring) into the annual report to the maximum extent
practicable. The CHCO Act metrics and the Accountability System will
provide OPM with the data necessary to meet statutory requirements of 5
U.S.C. 1103(a) and (c) and 5 U.S.C. 2301.
Major Issues
As a general matter, multiple commenters suggested OPM collaborate
directly with each affected agency or with a team of agency
representatives to develop metrics tailored to each agency's
requirements. We disagree. The CHCO Act gives OPM responsibility for
assessing strategic management of human capital across Government. The
Governmentwide focus requires standard metrics. OPM consults with
agencies on a regular basis through a variety of mechanisms including
the CHCO Council, the Human Resources Directors' Forum, and OPM's Human
Capital Officers. HCAAF requirements are designed to enable OPM to
fulfill this responsibility through a set of human capital management
systems, standards and metrics.
There also was general concern expressed by commenters that the
CHCO Act regulations add significantly to agency OPM reporting
requirements. However, the intent of the CHCO regulations is to
coordinate human capital management reporting requirements in a single
reporting system.
A commenter noted that the Chief Human Capital Officer should
approve workforce plans. A commenter also contended that it was the
agency's responsibility to determine the timing and format of the human
capital plan. We agree, but note that OPM has the responsibility to
assess and approve agency human capital accountability systems. OPM's
role is to assure that agencies engage in workforce planning that meets
approved standards.
Commenters also raised concerns about the interplay between the
CHCO Act reporting requirements and the Annual Employee Survey
regulations. While data from the Annual Employee Survey could be used
for HCAAF metrics, there is no substantive overlap in these two
regulations.
HCAAF
The Human Capital Assessment and Accountability Framework (HCAAF),
annexed hereto as an Appendix to the regulation, details the concepts
and systems for planning, implementing, and evaluating the results of
human capital management policies and practices. Commenters contended
that the framework is too transactional, broad and theoretical.
Commenters further contended that agencies cannot be held accountable
for ambiguous human capital management practices. We disagree. HCAAF
tools are not designed to ensure strict compliance, but to assist
agencies to meet HCAAF requirements. Measuring effective and efficient
HCM is best accomplished through representative, flexible indicators,
which OPM has established in the HCAAF metrics.
Commenters also objected to sections of 5 CFR 250.203(a)(1)(ii) on
workforce analysis. While we agree that other measurement methods could
be effective, OPM has chosen the current Human Capital and Workforce
Analysis Plan elements based on well-documented workforce plan models
used in the public and private sectors.
A commenter proposed that performance measures should support
agency goals instead of agency measures. We agree. The wording in 5 CFR
250.203(a)(1) (iii) has been changed accordingly.
Metrics
By this regulation, OPM defines the metrics to be used pursuant to
5 U.S.C. 1103(c) as the HCAAF and the HCAAF Systems, Standards, and
Metrics (HCAAF-SSM). See 5 CFR 250.202(b). See the Appendix to this
regulation. These metrics may be adapted, in the future, pursuant to
notice and comment, to meet the future needs of both agencies and OPM.
Commenters are providing feedback on the metrics to OPM through the
public comment process and in other forums like the CHCO Council. OPM
may incorporate this feedback, as appropriate, and pursuant to notice
and comment, to further refine the measures in the future.
Commenters generally contended that the metrics were inflexible,
overly detailed and potentially inaccurate. We disagree. The HCAAF-SSM
is a systematic method to examine strategic human capital practices
across all
[[Page 23013]]
Government agencies. Standardization is important because OPM cannot
roll up metrics that are based on different calculations. Moreover,
OPM, through the Accountability System, encourages all agencies to
develop separate measures that address relevant agency issues. The
HCAAF-SSM enables OPM to meet its statutory responsibility in the CHCO
Act. That responsibility is to assess the strategic management of human
capital across all of Government. OPM has determined that this can be
accomplished only through using a common set of metrics.
Accountability
Commenters expressed confusion surrounding the reporting
requirements under the Human Capital Accountability System and annual
Report. Commenters were concerned by the interplay of new and existing
reporting requirements and whether there would be redundancy. However,
the intent of the annual Human Capital Management Report is to provide
a mechanism to consolidate human capital reporting into one annual
report, and to incorporate this into agency performance and budget
reporting. Commenters also contended that the reporting requirements
are of no value to the agencies. We disagree. The Human Capital
Management Report serves a number of purposes, including providing
agencies a mechanism to document human capital results and actions
planned to address areas needing improvement. Agencies will benefit
from having effective, comparable human capital data.
A commenter also proposed that the report be issued biennially to
give agencies more time. We disagree. The annual report is appropriate
as it provides timely feedback on agency human capital management
systems. Moreover, the first complete accountability reporting with all
required metrics is not required until 2008 to give agencies sufficient
time to comply.
A commenter proposed that the agencies' Chief Human Capital
Officers have the authority to approve the agency accountability
systems. We disagree. OPM has the authority to require agencies to
establish accountability systems consistent with OPM standards. We made
a clarifying change to 5 CFR 250.203(a)(1)(iii)(2) to ensure that any
independent audit process is conducted with OPM participation.
A commenter also suggested implementing a third-party appeals
system prior to OPM withdrawing an agency's delegated examining unit or
otherwise penalizing the agency. We disagree. OPM has longstanding
authority under 5 U.S.C. 1104 to exercise oversight and control over
agencies' use of delegated authorities without the intervention of a
third party.
Commenters proposed that OPM's role be more as advisor than
auditor. While we will continue to provide guidance, advice and
leadership to agencies, OPM has a statutory role as auditor of agency
human capital management that must be fulfilled. Some commenters
expressed confusion over whether a third party auditor would be
required, but the proposed regulations have no such requirement. A
commenter also suggested OPM change the language in 5 CFR 250.103
regarding OPM discretion to require agency corrective action from may
to must. We disagree. OPM retains discretion to determine the
appropriate response to particular cases.
A commenter contended that it was unnecessary to review each HC
policy, program and operation every year. However, the regulations do
not require such a review. Another commenter proposed that the annual
Human Capital Management Report measure the number of employee
complaints and resolution of such complaints. While we encourage
agencies to include such measures in their accountability plans, and
many agencies do track complaints, this is not a required metric.
Commenters raised concerns about the sufficiency of pre-determined
budgets when implementing the newly required Human Capital Management
Report. Commenters contended that the timeline provided in the proposed
regulation did not allow time to align the Accountability System and
the budget development process. Concern was also raised about the
availability of funding for accountability systems when agency human
resources management does not control the budget. We disagree. The CHCO
Act holds agencies responsible for maintaining accountability for
results including merit system compliance. At the agency level,
leadership is required to align budgets with strategic management of
human capital. The first complete Human Capital Management Report with
all required metrics is not required until 2008 to give agencies
sufficient time to comply.
Commenters also requested that OPM differentiate the requirements
for agencies that have already implemented conforming accountability
systems from the requirements for agencies that have not implemented
such systems. We disagree. The regulations detailing the Accountability
System have been drafted to provide individual agencies maximum
flexibility while providing OPM comparable information across agencies.
A commenter requested that OPM require agencies to post their Human
Capital Management Reports on their Web sites. We disagree. While OPM
believes that agencies should post their Human Capital Management
Reports, an agency may have a number of valid reasons (e.g., national
security) for not posting its report.
Executive Order 12866, Regulatory Review
This proposed rule has been reviewed by the Office of Management
and Budget in accordance with Executive Order 12866.
Regulatory Flexibility Act
I certify that these regulations would not have a significant
economic impact on a substantial number of small entities (including
small businesses, small organizational units, and small governmental
jurisdictions) because they would only apply to Federal agencies and
employees.
List of Subjects in 5 CFR Part 250
Authority delegations (Government agencies), Government employees.
Office of Personnel Management.
Linda M. Springer,
Director.
0
Accordingly, OPM is amending 5 CFR 250 to read as follows:
0
1. Revise part 250 to read as follows:
PART 250--HUMAN RESOURCES MANAGEMENT IN AGENCIES
Subpart A--Authority for Personnel Actions in Agencies
Sec.
250.101 Standards and requirements for agency personnel actions.
250.102 Delegated authorities.
250.103 Consequences of improper agency actions.
Subpart B--Strategic Human Capital Management
250.201 Coverage and purpose.
250.202 Office of Personnel Management responsibilities.
250.203 Agency responsibilities.
Authority: 5 U.S.C. 1101 note, 1103(a)(5), 1103(c), 1104, 1302,
3301, 3302; E.O. 10577, 12 FR 1259, 3 CFR, 1954-1958 Comp., p. 218;
E.O. 13197, 66 FR 7853, 3 CFR 748 (2002).
Subpart B also issued under 5 U.S.C. 1401, 1401 note, 1402.
[[Page 23014]]
Subpart A--Authority for Personnel Actions in Agencies
Sec. 250.101 Standards and requirements for agency personnel actions.
When taking a personnel action authorized by this chapter, an
agency must comply with qualification standards and regulations issued
by the Office of Personnel Management (OPM), the instructions OPM has
published in the Guide to Processing Personnel Actions, and the
provisions of any delegation agreement OPM has made with the agency.
When taking a personnel action that results from a decision or order of
OPM, the Merit Systems Protection Board, Equal Employment Opportunity
Commission, or Federal Labor Relations Authority, as authorized by the
rules and regulations of those agencies, or as the result of a court
order, a judicial or administrative settlement agreement, or an
arbitral award under a negotiated agreement, the agency must follow the
instructions in the Guide to Processing Personnel Actions and comply
with all other relevant substantive and documentary requirements,
including those applicable to retirement, life insurance, health
benefits, and other benefits provided under this chapter.
Sec. 250.102 Delegated authorities.
OPM may delegate its authority, including authority for competitive
examinations, to agencies, under 5 U.S.C. 1104(a)(2), through a
delegation agreement. The delegation agreement developed with the
agency must specify the conditions for applying the delegated
authorities. The agreement must also set minimum standards of
performance and describe the system of oversight by which the agency
and OPM will monitor the use of each delegated authority.
Sec. 250.103 Consequences of improper agency actions.
If OPM finds that an agency has taken an action contrary to a law,
rule, regulation, or standard that OPM administers, OPM may require the
agency to take corrective action. OPM may suspend or revoke a
delegation agreement established under Sec. 250.102 at any time if it
determines that the agency is not adhering to the provisions of the
agreement. OPM may suspend or withdraw any authority granted under this
chapter to an agency, including any authority granted by delegation
agreement, when OPM finds that the agency has not complied with
qualification standards OPM has issued, instructions OPM has published,
or the regulations in this chapter. OPM also may suspend or withdraw
these authorities when it determines that doing so is in the interest
of the civil service for any other reason.
Subpart B--Strategic Human Capital Management
Sec. 250.201 Coverage and purpose.
The Chief Human Capital Officers (CHCO) Act of 2002 acknowledges
the critical importance of Federal employees to the effective and
efficient operation of Government. As a part of OPM's overall
leadership responsibilities in the strategic management of the Federal
civil service, and pursuant to 5 U.S.C. 1103, OPM is responsible for
designing a set of systems, including standards and metrics, for
assessing the management of human capital by Federal agencies. In this
subpart, OPM establishes a framework of those systems, including system
components, OPM's role, and agency responsibilities.
Sec. 250.202 Office of Personnel Management responsibilities.
(a) As the President's chief human capital officer, the Director of
OPM provides Governmentwide leadership and direction in the strategic
management of the Federal workforce.
(b) To execute this critical leadership responsibility, OPM adopts
the Human Capital Assessment and Accountability Framework (HCAAF) to
describe the concepts and systems for planning, implementing, and
evaluating the results of human capital management policies and
practices. See Appendix. In addition, OPM adopts the related set of
assessment systems required by the CHCO Act as the HCAAF Systems,
Standards, and Metrics (HCAAF-SSM), also included in the Appendix. Each
such assessment system associated with the HCAAF consists of:
(1) A standard against which agencies can assess the results of
their management of human capital; and
(2) Prescribed metrics, as appropriate, for organizational
outcomes, employee perspective, and compliance measures with respect to
relevant laws, rules and regulations.
(c) Together, the HCAAF and the HCAAF-SSM guide agencies in
planning, evaluating and improving the efficiency and effectiveness of
agency human capital management with respect to:
(1) Alignment with executive branch policies and priorities, as
well as with individual agency missions, goals, and program objectives,
including the extent to which human capital management strategies are
integrated into agency strategic plans and performance budgets prepared
under OMB Circular A-11;
(2) Identifying and closing competency/skill gaps in the agency's
mission-critical occupations; ensuring leadership continuity through
the implementation of recruiting, development, and succession plans;
sustaining an agency culture that values, elicits, identifies, and
rewards high performance; and developing and implementing a knowledge
management strategy, supported by appropriate investment in training
and technology; and
(3) Holding the agency head, executives, managers and human
resources officers accountable for efficient and effective human
capital management, in accordance with merit system principles.
Sec. 250.203 Agency responsibilities.
(a) To assist in the assessment of the management of human capital
in the Federal Government, and to help meet the statutory requirements
to prepare that portion of the performance budget for which agency
Chief Human Capital Officers are accountable as well as relevant
portions of performance and accountability reports, heads of agencies
or their designees must maintain a current human capital plan and
provide OPM an annual Human Capital Management Report, as outlined
below, based on an approved human capital accountability system. The
HCAAF and the HCAAF-SSM provide more specific information on coverage
and content for the plan and report.
(1) Human Capital Plan. Using a format established by agreement
between the agency and OPM, at a minimum the plan must include:
(i) Human Capital Goals and Objectives. These are a comprehensive,
integrated set of human capital goals and objectives, with detailed
policy and program priorities and initiatives as appropriate,
consistent with agency strategic plans and annual performance goals.
These human capital goals and objectives must address each of the human
capital management systems included in the HCAAF.
(ii) Workforce Analysis. This analysis of the agency's workforce
describes its current state, projects the human resources needed to
achieve the agency's program performance goals and objectives during
the term of the agency's strategic plan, and identifies potential
shortfalls or gaps. An ongoing analysis must, for relevant agency
mission requirements, describe the occupation(s) most critical to
agency performance (including associated managerial and executive
positions) and
[[Page 23015]]
describe mission-critical competencies and key demographics (e.g.,
talent analyses, turnover, and retirement eligibility); and for each
such occupation, describe its current and projected staffing levels,
attrition and hiring estimates, and proposed training and development
investments.
(iii) Performance Measures and Milestones. One or more human
capital metrics, as well as appropriate program milestones, for each
human capital goal or objective, provide a basis for assessing progress
and results, including compliance measures with respect to relevant
laws, rules and regulations. These metrics must include, but are not
limited to, those described in the HCAAF-SSM issued under Sec.
250.202(b). These metrics and milestones must be specifically linked to
broader agency program performance goals, to evaluate the impact of the
agency's human capital management on its overall mission performance.
(2) Human Capital Accountability System. This system provides for
an annual assessment of agency human capital management progress and
results including compliance with relevant laws, rules, and
regulations. That assessment is conveyed in an annual Human Capital
Management Report to OPM. The human capital accountability system must:
(i) Be formal and documented;
(ii) Be approved by OPM;
(iii) Be supported and resourced by agency leadership;
(iv) Measure and assess human capital management systems for
mission alignment, effectiveness, efficiency, and compliance with merit
system principles, laws, and regulations;
(v) Provide for an independent audit process, with OPM
participation, for periodic review of human resources transactions to
insure legal and regulatory compliance;
(vi) Ensure that action is taken to improve human capital
management programs and processes and to correct deficiencies; and
(vii) Ensure results are analyzed and reported to agency management
and OPM.
(3) Human Capital Management Report. At a minimum, the agency's
annual Human Capital Management Report must:
(i) Provide an evaluation of and report on the agency's existing
human capital management policies, programs, and operations, as they
relate to the agency's overall mission/program performance. The report
must address the performance measures and milestones contained in the
agency human capital plan including compliance measures with respect to
relevant laws, rules and regulations. The report must also document
actions taken to correct any violations or deficiencies that are
identified.
(ii) Inform the development of human capital goals and objectives
during the agency's strategic planning and annual performance budget
formulation process, as well as the treatment of human capital results
during the annual performance and accountability reporting process.
(b) [Reserved]
Note: The following appendix will not appear in the Code of
Federal Regulations.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION I--Introduction to the HCAAF Human Capital Assessment and Accountability Framework
(HCAAF)
-----------------------------------------------------------
Metrics
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Human Capital Assessment and Accountability The HCAAF establishes and defines five human capital
Framework (HCAAF). systems that together provide a single, consistent
definition of human capital management for the Federal
Government. The HCAAF fuses human capital management to
the merit system principles--a cornerstone of the
American Civil Service--and other civil service laws,
rules, and regulations. Establishment of the HCAAF
fulfills OPM's mandate under the Chief Human Capital
Officers Act of 2002 (CHCO Act) to design systems and set
standards, including appropriate metrics, for assessing
the management of human capital by Federal agencies.
The regulation at 5 CFR 205.203 establishes requirements
for an agency to submit to OPM annually a Strategic Human
Capital Plan and an Agency Human Capital Accountability
Report. The requirements in the regulation are by design
congruent with the planning and reporting requirements
contained in OMB Circular A-11 and title 31 U.S.C.
Five Systems of HCAAF The HCAAF outlines an ongoing process of human capital
management in every Federal agency--planning and goal
setting, implementation, and evaluating results--in five
systems:
Strategic Alignment (Planning and Goal Setting).
A system led by senior management--typically the Chief
Human Capital Officer (CHCO)--that promotes the alignment
of human capital management strategies with agency
mission, goals, and objectives through analysis,
planning, investment, measurement, and management of
human capital programs.
Leadership and Knowledge Management
(Implementation). A system that ensures continuity of
leadership by identifying and addressing potential gaps
in effective leadership and implements and maintains
programs that capture organizational knowledge and
promote learning.
Results-Oriented Performance Culture
(Implementation). A system that promotes a diverse, high-
performing workforce by implementing and maintaining
effective performance management systems and awards
programs.
Talent Management (Implementation). A system that
addresses competency gaps, particularly in mission-
critical occupations, by implementing and maintaining
programs to attract, acquire, promote, and retain quality
talent.
Accountability (Evaluating Results). A system
that contributes to agency performance by monitoring and
evaluating the results of its human capital management
policies, programs, and activities; by analyzing
compliance with merit system principles; and by
identifying and monitoring necessary improvements.
Each system consists of components that allow human
capital practitioners to assess how well the system is
strategically managing its human cpaital in compliance
with merit system principles.
Relationships Among the HCAAF Systems............... Figure 1 below shows the relationships among the human
capital systems.
[[Page 23016]]
[GRAPHIC] [TIFF OMITTED] TR28AP08.000
----------------------------------------------------------------------------------------------------------------
Implementation of the HCAAF will enable agencies to
transform the Federal workplace into high-performing
arenas where every employee is enabled to understand and
maximize his or her contribution to agency mission.
Through implementation of the HCAAF, Federal agencies
will be able to focus on:
Human capital management systems and practices
that most impact attainment of their mission.
Measurable, observable agency and individual
performance results.
This will help to assure the American people's continuing
trust in their Government's ability to serve them and
protect our national security.
HCAAF Taxonomy...................................... The following components reflect the overall taxonomy of
the HCAAF.
Standard........................................ A standard describes the critical human capital management
outcomes for agencies to strive toward in each of the
five HCAAF systems.
Metrics......................................... These are measurements that provide a basis for
comparison. Strategic human capital management requires a
reliable and valid set of metrics that provides an
accurate baseline against which individual agency
progress can be assessed. Required outcome metrics are
provided for the three systems that implement strategic
human capital plans and programs: Leadership and
Knowledge Management, Results-Oriented Performance
Culture, and Talent Management. These required metrics
are summarized on the following pages. Additional
suggested metrics are also included.
Critical Success Factors........................ Each system is based on critical success factors that make
up the overall system. Critical success factors are the
areas on which agencies and human capital practitioners
should focus to achieve a system's standard and operate
efficiently, effectively, and in compliance with merit
system principles. For example, Change Management and
Diversity Management are two critical success factors
associated with the Leadership and Knowledge Management
system.
Results......................................... The results describe the desired effects when key elements
of a critical success factor are effectively implemented.
Results are presented in two categories: Effectiveness
results and compliance results. Compliance results refer
to specific statutory or regulatory requirements.
Key Elements.................................... Each critical success factor contains several key elements
that are similar to the Elements of Yes that were
initially developed as part of the HCAAF. Key elements
describe what you would expect to see in an effective
critical success factor.
Suggested Performance Indicators................ The suggested indicators--both effectiveness indicators
and compliance indicators--describe examples of visible
evidence of the existence of key elements and compliance
with merit system principles. Cumulatively, the
indicators identify how well the agency is doing relative
to key elements. The suggested performance indicators are
linked to the key elements and are not meant to be an all-
inclusive list. Human capital practitioners may need to
search for other indicators if agency approaches differ
from the list of suggested performance indicators
provided. Agencies may decide which suggested performance
indicators provide the best evidence that they have
implemented practices that lead toward achieving the
standard.
----------------------------------------------------------------------------------------------------------------
[[Page 23017]]
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION I--Introduction to the HCAAF Human Capital Assessment and Accountability Framework
(HCAAF)
-----------------------------------------------------------
Metrics
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Metrics............................................. Metrics have been established to help agencies accomplish
the standard for the three systems that implement
strategic human capital plans and programs--i.e.,
Leadership and Knowledge Management, Results-Oriented
Performance Culture, and Talent Management. These three
systems have both required and suggested metrics.
Required metrics focus on human capital
management outcomes and are required for Governmentwide
reporting. They focus on human capital management
outcomes from three perspectives: organization, employee,
and merit system compliance.
Suggested metrics focus on human capital
management activities that support outcome metrics and
show the health of a specific HCAAF critical success
factor.
The metrics were developed based on extensive research
from a variety of expert sources. To be incorporated in
the HCAAF, a metric needed to meet the following
criteria:
Align with the HCAAF.
Drive organizational effectiveness directly or
indirectly.
Be applicable Governmentwide.
Be actionable (under the control of the agency).
Be practical (cost effective and acceptable).
Be reliable (stable).
Be valid (accurate and appropriate for its
purpose).
The metrics described in this Guide were carefully chosen
to maintain their usefulness over time. However, many
additional human capital metrics exist that agencies may
find they want to implement. Agencies are encouraged to
augment these Governmentwide metrics with other activity
and outcome metrics that are relevant to the agencies'
human capital objectives.
The following pages provide the system standard and the
required outcome metrics for the Leadership and Knowledge
Management, Results-Oriented Performance Culture, and
Talent Management systems. Refer to each specific
system's section for the suggested metrics.
Leadership and Knowledge Management System Standard. Agency leaders and managers effectively manage people,
ensure continuity of leadership, and sustain a learning
environment that drives continuous improvement in
performance, and provide a means to share critical
knowledge across the organization. Knowledge management
must be supported by an appropriate investment in
training and technology.
----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
Required Outcome Metric Description Purpose
------------------------------------------------------------------------
Organization Metric: Difference between To determine how the
Competency Gaps Closed for competencies needed agency should
Management and Leadership. and competencies target its
possessed by recruitment and
managers and retention, and
leaders. development efforts
to bring the
competencies of its
managers and
leaders into
alignment with the
agency's current
and future needs.
Employee Perspective Metric: Items from Annual To determine the
Questions from Annual Employee Survey. extent to which
Employee Survey about employees hold
Satisfaction with their leadership in
Leadership. high regard, both
overall and on
specific facets of
leadership.
Merit System Compliance An assessment of To determine that
Metric: Merit-Based compliance with decisions,
Execution of the Leadership merit system policies,
and Knowledge Management principles and processes, and
System. related laws, practices executed
rules, and under the
regulations Leadership and
governing the Knowledge
Leadership and Management system
Knowledge comply with the
Management system. merit system
principles and
related laws,
rules, and
regulations.
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Results-Oriented Performance The agency has a diverse, results-
Culture System Standard. oriented, high-performing workforce and
a performance management system that
differentiates between high and low
levels of performance and links
individual/team/unit performance to
organizational goals and desired results
effectively.
------------------------------------------------------------------------
------------------------------------------------------------------------
Required Outcome Metric Description Purpose
------------------------------------------------------------------------
Organization Metric: SES Relationship between To determine the
Performance/Organizational SES performance extent to which SES
Performance Relationship as ratings and appraisals and
Linked to Mission. accomplishment of awards are
the agency's appropriately based
strategic goals. on achievement of
organizational
results.
Organization Metric: Degree of linkage To determine whether
Workforce Performance between employees' all employees have
Appraisals Aligned to performance performance
Mission, Goals, and appraisal plans and appraisal plans
Outcomes. agency mission, that effectively
goals, and outcomes. link to the
agency's mission,
goals, and
outcomes.
Employee Perspective Metric: Items from Annual To determine the
Questions from Annual Employee Survey. extent to which
Employee Survey about employees believe
Performance Culture. their
organizational
culture promotes an
improvement in
processes, products
and services, and
organizational
outcomes.
[[Page 23018]]
Merit System Compliance An assessment of To determine that
Metric: Merit-Based compliance with decisions,
Execution of the merit system policies,
Performance Culture System. principles and processes, and
related laws, practices executed
rules, and under the
regulations Performance Culture
governing the system comply with
Performance Culture the merit system
system. principles and
related laws,
rules, and
regulations.
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Talent Management System The agency has closed skills, knowledge,
Standard. and competency gaps/deficiencies in
mission-critical occupations, and has
made meaningful progress toward closing
skills, knowledge, and competency gaps/
deficiencies in all occupations used in
the agency.
------------------------------------------------------------------------
------------------------------------------------------------------------
Required Outcome Metric Description Purpose
------------------------------------------------------------------------
Organization Metric: Difference between To determine how the
Competency Gaps Closed for competencies needed agency should
Mission-Critical and competencies target its
Occupations. possessed by recruitment,
employees in retention, and
mission-critical development efforts
occupations. to bring the
competencies of its
workforce into
alignment with the
agency's current
and future needs.
Employee Perspective Metric: Items from Annual To determine the
Questions from Annual Employee Survey. extent to which
Employee Survey about employees think the
Organizational Capacity. organization has
talent necessary to
achieve
organizational
goals.
Employee Perspective Metric: Items from Annual To determine the
Questions from Annual Employee Survey. extent to which
Employee Survey about employees are
Employee Satisfaction. satisfied with
their jobs and
various aspects
thereof.
Merit System Compliance An assessment of To determine that
Metric: Merit-Based compliance with decisions,
Execution of the Talent merit system policies,
Management System. principles and processes, and
related laws, practices executed
rules, and under the Talent
regulations Management system
governing the comply with the
Talent Management merit system
system. principles and
related laws,
rules, and
regulations.
------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION II--Strategic Alignment System The Strategic Alignment System
-----------------------------------------------------------
Human Capital Planning
-----------------------------------------------------------
Workforce Planning
-----------------------------------------------------------
Human Capital Best Practices and Knowledge Sharing
-----------------------------------------------------------
Human Resources as Strategic Partner
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
The Strategic Alignment System...................... This section contains information specific to the
Strategic Alignment system, which focuses on having a
human capital management strategy that is aligned with
mission, goals, and organizational objectives.
Definition.......................................... A system led by senior management--typically the Chief
Human Capital Officer (CHCO)--that promotes alignment of
human capital management strategies with agency mission,
goals, and objectives through analysis, planning,
investment, measurement, and management of human capital
programs.
Standard............................................ Agency human capital management strategies are aligned
with mission, goals, and organizational objectives and
integrated into its strategic plans, performance plans,
and budgets.
Critical Success Factors............................ The Strategic Alignment system is comprised of the
following critical success factors:
Human Capital Planning: The agency designs a
coherent framework of human capital policies, programs,
and practices to achieve human capital requirements to
directly support the agency's strategic plan.
Workforce Planning: The organization identifies
the human capital required to meet organizational goals,
conducts analyses to identify competency gaps, develops
strategies to address human capital needs and close
competency gaps, and ensures the organization is
appropriately structured.
Human Capital Best Practices and Knowledge
Sharing: To leverage its efforts, the agency works with
others to share best practices and learn about new
developments.
Human Resources as Strategic Partner: Human
resources (HR) professionals act as consultants with
managers to develop, implement, and assess human capital
policies and practices to achieve the organization's
shared vision. Senior leaders, managers, HR
professionals, and key stakeholders contribute to the
human capital vision and the agency's broader strategic
planning process.
Applicable Merit System Principles.................. The following merit system principle is especially
relevant to the Strategic Alignment system:
The Federal work force should be used efficiently
and effectively. (5 U.S.C. 2301(b)(5)).
Metrics............................................. Activities and outcomes of this system are assessed
through documented evidence of a Strategic Human Capital
Plan that includes human capital goals, objectives, and
strategies; a workforce plan; and performance measures
and milestones.
----------------------------------------------------------------------------------------------------------------
Agencies are required under OPM regulations implementing the CHCO Act to submit the Strategic Human Capital Plan
described by this system to OPM on an annual basis.
----------------------------------------------------------------------------------------------------------------
[[Page 23019]]
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION II--Strategic Alignment System The Strategic Alignment System
-----------------------------------------------------------
Human Capital Planning
-----------------------------------------------------------
Workforce Planning
-----------------------------------------------------------
Human Capital Best Practices and Knowledge Sharing
-----------------------------------------------------------
Human Resources as Strategic Partner
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Human Capital Planning..................... When the key elements of the critical success factor Human
Capital Planning are effectively implemented, agencies
will realize the following results:
Effectiveness Results
The agency's strategic plan establishes an agency-
wide vision that guides human capital planning and
investment activities.
The agency has a system in place to continually
assess and improve human capital planning and investment
and their impact on mission accomplishments.
Managers are held accountable for effective
implementation of human capital plans and overall human
capital management.
Compliance Result
In accordance with the Chief Human Capital
Officers Act of 2002 (CHCO Act), the agency CHCO carries
out the functions authorized in 5 U.S.C. 1402, including
aligning the agency's human resources policies and
programs with organizational mission, strategic goals,
and performance outcomes.
The following pages provide key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
HUMAN CAPITAL PLANNING
-----------------------------------------------------------------------------------------------------------------
Key Elements Suggested Performance Indicators
----------------------------------------------------------------------------------------------------------------
The agency has a human capital planning system that:
Promotes alignment of human capital Effectiveness Indicators
strategies with agency mission, goals, and Key stakeholders, including HR, participate in
objectives through analysis, planning, investment, the development and revision of the agency's strategic
and management of human capital programs plan and facilitate workforce planning and analysis
efforts.
Documents substantiate involvement of key
human capital leaders and key stakeholders in the
planning process (e.g., team members of review boards,
working groups, or executive off-sites).
Human capital planning is managed by a human
capital review team or similar collaborative body
comprised of the CHCO and senior leaders and managers
from human resources, information technology, finance,
and mission-specific program areas.
Compliance Indicator
As provided by 5 U.S.C. 1303(c), the agency
holds managers and human resources officers
accountable for efficient and effective human
resources management in support of the agency's
mission, in accordance with merit system principles.
Establishes a process for including human Effectiveness Indicators
capital activities and investments in the agency The agency's annual performance plan and
annual performance plan and budget budget request include human capital activities and
investments.
The annual plan identifies resources required
to implement human capital strategies (e.g., retention
bonuses, ``buyouts,'' awards, training, student loan
repayments, tuition assistance, Voluntary Early
Retirement Authority (VERA)). Funding requirements are
prioritized in case not all human capital strategies
can be funded.
Compliance Indicators
The agency has a standard for integrating its
human resources strategies into the budget as stated
in 5 U.S.C. 1303, as added by the CHCO Act of 2002.
As prescribed in the CHCO Act (31 U.S.C.
1115), the agency's performance plan provides a
description of how the performance goals and
objectives are to be achieved, including:
--The operational processes, training, skills and
technology, and the human capital information and
other resources
--The strategies required to meet the performance goals
and objectives.
[Note: In addition to amending and adding to title V,
the CHCO Act amends provisions of the Government
Performance and Results Act of 1993 (GPRA), which
requires agencies to prepare annual performance
plans.]
[[Page 23020]]
Results in the development of an annual Effectiveness Indicators
human capital plan establishing human capital The agency's planning process links the human
goals, objectives, and investments that link to capital framework to the mission, function, and
the agency strategic plan and support mission strategic management of the agency, as well as to
accomplishment other management initiatives such as e-Government and
competitive sourcing.
The agency has designed human capital
performance improvement strategies that support
mission accomplishment.
The agency has approved and communicated human
capital planning documents that describe human capital
goals, objectives, investments, and strategies that
are linked to the agency strategic plan.
Compliance Indicators
The agency includes human capital strategic
planning in agency performance plans and performance
reports as stated in 31 U.S.C. 1115, as amended by the
CHCO Act.
As prescribed in the CHCO Act (31 U.S.C.
1115), the agency's program performance report
includes a review of the performance goals and
evaluation of the agency's performance plan relative
to the agency's strategic human capital plan.
Provides for a formal agency-wide Effectiveness Indicators
evaluation of the strategies in the human capital The strategic human capital plan sets human
plan and its implementation capital progress milestones and identifies those
responsible for meeting them.
The agency's annual performance review tracks
and measures human capital activities and investments.
The agency defines successful achievement of
the mission in terms of quantified long- and short-
term human capital performance goals.
The agency has a documented change management/
implementation process that identifies necessary human
capital practices that facilitate change.
The agency has a human capital planning system that: Where appropriate, individual performance
plans and evaluations address accountability for
successful implementation of human capital strategies.
Human capital partnering is considered in
senior leaders' and managers' annual performance
reviews.
Compliance Indicators
In accordance with the Executive Performance
and Accountability Interim Rule (5 CFR 430 and 1330),
senior employee performance ratings appropriately and
clearly link to organizational mission, GPRA strategic
goals, or other program objectives.
Agency managers plan and communicate
performance elements and standards that are linked
with strategic planning initiatives in accordance with
the Executive Performance and Accountability Interim
Rule (5 CFR 430 and 1330).
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION II--Strategic Alignment System The Strategic Alignment System
-----------------------------------------------------------
Human Capital Planning
-----------------------------------------------------------
Workforce Planning
-----------------------------------------------------------
Human Capital Best Practices and Knowledge Sharing
-----------------------------------------------------------
Human Resources as Strategic Partner
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Workforce Planning......................... When the key elements of the critical success factor
Workforce Planning are effectively implemented, agencies
will realize the following results:
Effectiveness Results
The agency approaches workforce planning
strategically and in an explicit, documented manner. The
workforce plan links directly to the agency's strategic
and annual performance plans and is used to make
decisions about structuring and deploying the workforce.
Mission-critical occupations and competencies are
identified and documented, providing a baseline of
information for the agency to develop strategies to
recruit, develop, and retain talent needed for program
performance.
The agency's documented workforce plan identifies
current and future workforce competencies and the agency
is closing identified competency gaps through
implementation of gap reduction strategies such as:
--Restructuring.
--Recruitment.
--Competitive sourcing.
--Redeployment.
--Retraining.
[[Page 23021]]
--Retention (e.g., compensation, quality of work life).
--Technology solutions.
A business forecasting process is implemented
that identifies probable workforce changes, enabling
agency leadership to anticipate changes to human capital
that require action to ensure program performance.
Based on functional analyses, the agency is
appropriately structured to allow the right mix and
distribution of the workforce to best support the agency
mission.
Based on analysis of customer needs and workload
distribution, the agency has the right balance of
supervisory and non-supervisory positions to support the
agency mission.
Compliance Result
The CHCO assesses workforce characteristics and
future needs based on the agency's mission and strategic
plan in accordance with the CHCO Act of 2002 (5 U.S.C.
1402).
The following pages provide key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
WORKFORCE PLANNING
-----------------------------------------------------------------------------------------------------------------
Key Elements Suggested Performance Indicators
----------------------------------------------------------------------------------------------------------------
The agency's workforce planning system includes a
workforce analysis process that:
Identifies mission-critical occupations Effectiveness Indicators
and competencies that are essential to achieving Studies indicate which occupations and
strategic goals. competencies are essential to achieving the agency's
Analyzes current strengths and weaknesses strategic goals.
regarding mission-critical occupations and Mission-critical occupations and competencies
competencies.. are identified in the agency's strategic plan and/or
Identifies competency gaps and performance plan, and its strategic human capital
deficiencies, including current and future plan.
competency needs and losses due to voluntary A methodology exists for determining mission-
attrition.. critical occupations and competencies based in part on
Systematically defines the size of the professional qualifications (e.g., certifications,
workforce needed to meet organizational goals.. licenses).
Uses workforce planning reports and Trends in mission-critical occupations are
studies in conjunction with the best practice analyzed in terms of the following suggested factors
benchmarks to determine the most effective work in order to continually adjust the agency's
levels, workloads, and resources for efficient recruitment and retention strategy to its current
functioning.. state of need:
Bases decisions related to restructuring, --Number and distribution of positions by pay plan/
redeployment, and reorganization on current grade or pay band/series and geographic location.
empirical and workforce analysis.. --Average age.
Conducts risk assessments to minimize --Average length of service.
adverse impacts on workforce due to restructuring.. --Diversity trends.
Documents and assesses key supporting --Average grade/band.
functions of all business areas.. --Retirement eligibility (current and expected).
Regularly evaluates customer/citizen needs --Turnover (e.g., separations, resignations, transfers,
and incorporates these needs into workforce plans, retirements).
organizational goals, and functions.. --Surpluses in occupations and competencies.
Competency and/or staffing models have been
developed and there is analysis of gaps between the
current and desired competencies for mission-critical
occupations.
Documentation indicates workforce analysis
occurs on a periodic basis and is used to drive human
capital policy and decisions.
The agency uses a documented, systematic
strategic workforce planning process that addresses
the following issues:
--The link to the agency's strategic plan and the
strategic human capital plan.
--The link to the agency's annual performance/business
plan.
--Work activities required to carry out the goals and
objectives of the strategic plan (long term) and
performance plan (short term).
--How to structure the organization (e.g., determine
what must be done for continuance of Government
operations, determine necessary layers, streamline
functions, consolidate organizational elements) and
its work processes/workflow to carry out work
activities
--How to continually update the process to reflect
mission changes, technology advances (e.g., e-
Government), funding levels, competitive sourcing, and
other change drivers.
--Analysis and assessment of the current workforce
(e.g., skills, demographics, attrition) to meet long-
term and short-term goals and objectives.
--Workforce analysis including indicators such as size
and distribution of workforce (including Senior
Executive Service (SES)) by grade, series, geographic
locations, types of positions occupied, pay plan,
veteran representation, etc.
--How to develop current employees, recruit to fill
long-term and short-term goals, and provide for
continuity of leadership through succession to key
positions.
--How to minimize the adverse impact on the workforce
in restructuring the organization and its work
processes.
The agency uses multi-faceted techniques to
close competency gaps within the organization (e.g.,
strategic recruitment, mid-career hiring, training).
[[Page 23022]]
The agency conducts regular assessment of its
need for, and deployment of, executive resources.
Forecasts future business changes in the Effectiveness Indicators
work of the agency and how the changes will affect Line managers and key staff, including HR,
the workforce. consider and prepare for possible workforce changes in
Regularly tracks established performance areas such as mission/goals, technology, program
measures, workforce trends, and technological additions or deletions, functions, and outsourcing
advances to ensure updated models for meeting initiatives.
citizen and organization needs. The agency's strategic plan and/or performance
plan and its strategic human capital plan reflect
forecasts of the human capital implications of future
business plans, including expectations and trends
concerning:
--Future workload and staffing needs.
--Workforce demographics in mission-critical
occupations.
--Changing competency requirements
--Industry benchmarking for similar occupations.
--Availability of competencies within applicable labor
markets.
The forecast is shared widely and used within
the agency by those who are responsible and
accountable to meet human capital needs.
The agency's workforce analysis process is based on
sources of information such as:
Current workforce demographic and Effectiveness Indicators
competitive sourcing studies. Information systems are in operation which
Descriptive and documented plans and provide human capital data to all appropriate
processes for hiring, recruiting, employment, and management levels to guide planning, analysis, and
retention efforts.. decision making. Data integrity is maintained through
Past agency assessments and workforce quality control checks.
data.. The agency conducts and uses management
Information about anticipated changes studies to:
related to e-Government and competitive sourcing, --Eliminate work and interfaces that add no value.
goals, and objectives..
--Assess the organization's deployment strategies,
including identification of situations where
competitive sourcing is the most appropriate means to
meet their strategic objectives.
Staffing data showing trends in appointments,
promotions, conversions, separations, and retirements
are analyzed regularly, and management decisions
regarding workforce deployment are based on documented
data.
Turnover indicators (e.g., transfers,
retirements, and separations in each of the last
several years, overall, and by professional,
administrative, technical, clerical, and other
occupations) are monitored regularly.
The agency's workforce planning system includes an
organizational structuring process that:
Utilizes functional analysis to determine Effectiveness Indicators
appropriate organizational and physical structure. Documentation of analyses of organizational
Clearly organizes the agency staffing plan functions shows review, planning, design, and, if
by workflow, organizational initiative, and applicable, implementation and outcome of efforts to
functional area.. realign the workforce.
Anticipates change in citizen needs by Functional analyses and data analyses result
continuously monitoring the evolution of needs, in specific targets for workforce redeployment, which
trends, and events affecting workforce planning.. are reflected in the strategic human capital plan and
Avoids excess organizational layers....... the workforce plan.
Reduces redundant operations.............. The benefits of proposed changes to the
Analyzes internal workforce statistics structure and/or the workforce mix are quantified and
(e.g., ratio of managers to workforce, incorporated into the budget submissions.
distribution of workforce), data, and trends to Duplications in support areas such as
make the most efficient choices for workforce communications, legislative affairs, budget, and
deployment.. personnel and/or duplications in program areas are
reduced and programs are streamlined and consolidated
wherever possible.
Analysis of data includes statistics such as
ratio of administrative jobs (e.g., administrative
officer, budget analyst, budget clerk, management
analyst, personnel clerk, personnel professional,
support services specialist) to the workforce,
distribution of administrative jobs by organizational
component and geographic location, and trends in
numbers and proportions of administrative jobs.
A model organization has been developed that:
--Reflects the numbers of employees needed and their
appropriate skill and grade or pay band/level mix.
--Identifies key leadership positions.
--Includes specific recruiting and training/development
activities.
Compliance Indicator
The agency appropriately applies pertinent
regulations and statutes to group or individual
deployment-related actions as specified in the Talent
Management system (Voluntary Early Retirement
Authority (VERA), Voluntary Separation Incentive
Payments (VSIP), Transfer of Function (TOF), etc.).
The agency's organizational structuring process
demonstrates that it:
[[Page 23023]]
Includes statistics regarding number of Effectiveness Indicators
supervisors, their series and grade/pay band, Analysis of data includes statistics related
geographic location, and ratio of supervisors to to the number of supervisors, their geographic and
employees. organizational location, their series and grades/pay
Obtains the mix of supervisory and non- bands, the ratio of supervisors to employees, percent
supervisory positions to best meet customer needs.. of supervisors in grades GS-12-15 or equivalent, etc.
Documents the need for redirecting Supervisory needs are clearly tied to the
supervisory positions and the planned program workflow process and the organizational structure
design and assessment for the implemented changes.. resulting in a staffing plan that indicates the
Addresses impediments to restructuring by necessary number of supervisors by functional area.
analyzing solutions found within the current The agency has documented the need to redirect
environment.. supervisory positions, designed and implemented a
Uses a documented change management program to support their redeployment, and developed
strategy.. an evaluation process to determine if the anticipated
outcomes are being achieved.
Impediments are identified and solutions to
overcome impediments within the current environment
(e.g., Title V and/or other appropriate systems) are
identified and documented.
Through consultation with the Office of
Personnel Management (OPM), the agency makes a sound
business case for any waivers, exemptions, or
regulatory or legislative relief needed to overcome
barriers.
The agency has a documented change management
strategy, where appropriate, to overcome barriers and
facilitate restructuring/culture change efforts.
The agency's restructuring, redeployment, and
reorganization decisions are substantiated with
empirical evidence.
Agency records indicate that, during
restructuring, redeployment, and reorganizing,
operational disruption is minimized through the use
of:
--Effective internal and external communication plans
--Retraining
--Reassignment
--Placement assistance
--Relocation allowances
--VERA and VSIP where appropriate
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION II--Strategic Alignment System The Strategic Alignment System
-----------------------------------------------------------
Human Capital Planning
-----------------------------------------------------------
Workforce Planning
-----------------------------------------------------------
Human Capital Best Practices and Knowledge Sharing
-----------------------------------------------------------
Human Resources as Strategic Partner
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Human Capital Best Practices and Knowledge When the key elements of the critical success factor Human
Sharing Capital Best Practices and Knowledge Sharing are
Effectively implemented, agencies will realize the
following results:
Effectiveness Result
The agency looks beyond its own experience and
resources when developing human capital strategies and
works with others to share best practices.
Compliance Result
As provided in 5 U.S.C. 1303(c), the agency holds
managers and human resources officers accountable for
efficient and effective human resources management in
support of the agency's mission, in accordance with merit
system principles.
The following page provides key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
HUMAN CAPITAL BEST PRACTICES AND KNOWLEDGE SHARING
-------------------------------------------------------------------------
Suggested Performance
Key Elements Indicators
------------------------------------------------------------------------
The agency has a human capital best
practices and knowledge sharing system
that:
Benchmarks best practices Effectiveness Indicator
and lessons learned by other The agency uses
Government agencies and private resources (e.g., Web sites,
sector organizations. research findings, special
studies, program guidance)
from sources such as:
--OPM.
--Office of Management and
Budget (OMB).
--Government Accountability
Office (GAO.)
--Society for Human Resource
Management (SHRM).
--International Public
Management Association for
Human Resources (IPMA-HR).
[[Page 23024]]
Compliance Indicator
The agency's CHCO
identifies best practices and
benchmarking studies in
accordance with the CHCO Act
(5 U.S.C. 1402).
Establishes a method or Effectiveness Indicators
process for collaborating with The agency uses
other agencies regarding effective Governmentwide benchmarks
human capital strategies. (e.g., staffing timeliness,
Central Personnel Data Files/
FedScope, Federal Human
Capital Survey (FHCS)
responses) in setting human
capital strategic goals.
The agency
participates in human capital
managerial/professional
employee groups (e.g., the
Chief Human Capital Officers
Council, the Small Agency
Council, Federal Executive
Boards, and National Academy
of Public Administration).
Provides valuable Effectiveness Indicators
information to human capital Agency representatives
planners on effective human participate in Governmentwide
capital strategies that is used to collaborative efforts and/or
improve human capital planning. managerial/professional/
employee organizations to
share best practices and
leverage lessons learned.
------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION II--Strategic Alignment System The Strategic Alignment System
-----------------------------------------------------------
Human Capital Planning
-----------------------------------------------------------
Workforce Planning
-----------------------------------------------------------
Human Capital Best Practices and Knowledge Sharing
-----------------------------------------------------------
Human Resources as Strategic Partner
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Human Resources as Strategic Partner....... When the key elements of the critical success factor Human
Resources as Strategic Partner are effectively
implemented, agencies will realize the following results:
Effectiveness Results
HR professionals and key stakeholders are
involved in the agency strategic and workforce planning
efforts.
The HR function is adequately staffed and
prepared, in competencies and resources, to proactively
partner and consult with line managers.
The HR staff reaches out to other organizational
functions and components through facilitation,
coordination, and counseling to provide integrated
mission support.
Compliance Result
As provided by 5 U.S.C. 1303(c), the agency holds
managers and human resources officers accountable for
efficient and effective human resources management in
support of the agency's mission, in accordance with merit
system principles.
The following pages provide key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
HUMAN RESOURCES AS STRATEGIC PARTNER
-----------------------------------------------------------------------------------------------------------------
Key Elements Suggested Performance Indicators
----------------------------------------------------------------------------------------------------------------
The agency's human resources system:
Is proactively involved in the agency Effectiveness Indicators
strategic and workforce planning efforts. The HR staff consults with managers and
supervisors across the agency on various management
issues.
The HR staff provides advice and guidance to
managers on human capital strategies tailored to meet
organizational needs.
The HR staff assesses and anticipates needs of
customers (i.e., managers, supervisors, employees, and
applicants), develops functions and services to
support and fulfill those needs, ensures quality of
services, and communicates program requirements to
customers.
The HR staff involves line functions in
program review and/or development and likewise is
invited by line functions to organizational meetings
and retreats to identify and advise on HR issues.
FHCS and/or other surveys or interviews
indicate that HR staff members are viewed as internal
consultants and that human capital strategies support
the broader agency mission.
Policies describe the process and procedures
for communicating customer issues, resolving customer
dissatisfaction, and handling customer comments.
The HR staff measures and communicates the
value of products and services it provides through
feedback mechanisms.
[[Page 23025]]
Compliance Indicator
As provided by 5 U.S.C. 1303(c), the agency
holds managers and human resources officers
accountable for efficient and effective human
resources management in support of the agency's
mission, in accordance with merit system principles.
Includes a staff that has the skills and Effectiveness Indicators
competencies required for partnering with The agency conducts HR staff development needs-
executives and managers in strategic planning. assessment studies to identify competency gaps.
The agency has strategies (e.g., automation,
competitive sourcing, recruitment, mentoring,
training) in place to close competency gaps in HR
staff and to provide managers the advice and tools
they need to operate.
HR staff conducts program reviews, customer
surveys, and regular assessments of information
systems and other support functions to identify areas
for continuing improvement.
Analysis of staffing levels includes
considerations such as HR servicing ratio, HR staff
distribution by series/grade/pay band, HR staff
average grade/pay band, age, length of service,
training completed, retirement eligibility, HR
supervisory ratio, and ratio of personnel actions to
personnel staff.
Has a human resource information system Effectiveness Indicator
with the capacity to provide relevant and reliable HR staff partners with managers to:
data necessary for making fact-based human capital --Conduct workforce studies and analyze results in
decisions. collaboration with managers; the data is used for
decision making
--Use all available functions and features of the
agency's current system to facilitate effective agency
workforce management (e.g., process and report on
personnel transactions, query data) and provide
routine reports to managers.
--Participate, as appropriate (i.e., depending on level
in organization), in agency and/or OPM initiatives to
support the OPM Enterprise Human Resources Integration
initiative, which will support HR management across
Government.
--Participate, as appropriate, in other e-government
initiatives such as e-payroll and RSM.
--The agency uses an HR information system that
promotes employee self-service and manager access to a
broad range of human capital information and
indicators.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION III--Leadership and Knowledge Management The Leadership and Knowledge Management System
System
-----------------------------------------------------------
Leadership Succession Management
-----------------------------------------------------------
Change Management
-----------------------------------------------------------
Integrity and Inspiring Employee Commitment
-----------------------------------------------------------
Continuous Learning
-----------------------------------------------------------
Knowledge Management
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
The Leadership and Knowledge Management System...... This section contains information specific to the
Leadership and Knowledge Management system, which focuses
on identifying and addressing agency leadership
competencies so that continuity of leadership is ensured,
knowledge is shared across the organization, and an
environment of continuous learning is present.
Definition.......................................... A system that ensures continuity of leadership by
identifying and addressing potential gaps in effective
leadership and implements and maintains programs that
capture organizational knowledge and promote learning.
Standard............................................ Agency leaders and managers effectively manage people,
ensure continuity of leadership, and sustain a learning
environment that drives continuous improvement in
performance, and provide a means to share critical
knowledge across the organization. Knowledge management
must be supported by an appropriate investment in
training and technology.
Critical Success Factors............................ The Leadership and Knowledge Management system is
comprised of five critical success factors:
Leadership Succession Management. The
organization identifies leadership competencies and
establishes objectives and strategies to ensure there is
a continuous pipeline of available leadership within the
organization.
Change Management: The agency has in place
leaders who understand what it takes to effectively bring
about changes that achieve significant and sustained
improvements in performance.
Integrity and Inspiring Employee Commitment:
Leaders maintain high standards of honesty and ethics
that serve as a model for the whole workforce. Leaders
promote teamwork and communicate the organization's
shared vision to all levels of the organization and seek
feedback from employees. Employees respond by maintaining
high standards of honesty and ethics.
[[Page 23026]]
Continuous Learning: Leaders foster a learning
culture that provides opportunities for continuous
development and encourages employees to participate.
Leaders invest in education, training, and other
developmental opportunities to help themselves and their
employees build mission-critical competencies.
Knowledge Management: The organization
systematically provides resources, programs, and tools
for knowledge sharing across the organization in support
of its mission accomplishment.
Together, these critical success factors ensure:
A constant flow of leaders who can properly
direct an agency's efforts to achieve results.
A workforce with the competencies required to
achieve the agency's mission.
That the workforce is motivated to use its
competencies in service of the agency's mission.
Applicable Merit System Principles.................. The following merit system principle is especially
relevant to the Leadership and Knowledge Management
system:
Employees should be provided effective education
and training in cases in which such education and
training would result in better organizational and
individual performance. (5 U.S.C. 2301(b)(7)).
Required Outcome Metrics............................ The following are required outcome metrics for the
Leadership and Knowledge Management system.
----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
Required Metric Description Purpose
------------------------------------------------------------------------
Organization Metric: Difference between To determine how the
Competency Gaps Closed for competencies needed agency should
Management and Leadership. and competencies target its
possessed by recruitment,
managers and retention, and
leaders. development efforts
to bring the
competencies of its
managers and
leaders into
alignment with the
agency's current
and future needs.
Employee Perspective Metric: Items from Annual To determine the
Questions from Annual Employee Survey. extent to which
Employee Survey about employees hold
Satisfaction with their leadership in
Leadership. high regard, both
overall and on
specific facets of
leadership.
Merit System Compliance An assessment of To determine that
Metric: Merit-Based compliance with decisions,
Execution of the Leadership merit system policies,
and Knowledge Management principles and processes, and
System. related laws, practices executed
rules, and under the
regulations Leadership and
governing the Knowledge
Leadership and Management system
Knowledge comply with the
Management system. merit system
principles and
related laws,
rules, and
regulations.
------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Suggested Metrics In addition to the required outcome metrics, the following
metrics associated with the Leadership and Knowledge
Management system are suggested.
----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
Suggested Metric Description Purpose
------------------------------------------------------------------------
Bench Strength.............. The relationship To ensure that
between the number enough internal
of employees in the organizational
leadership pipeline capacity exists to
who demonstrate the mitigate leadership
required level of attrition and
performance on maintain progress
leadership toward mission
competencies and attainment.
the number of
critical leadership
positions.
Time To Hire Critical Average time from To determine the
Leadership Positions. date vacancy closes efficiency of a
to date offer is critical phase of
extended (expressed the Federal hiring
in working days). process.
Succession Sources.......... Percentage of To determine the
critical leadership extent to which
positions filled various succession
from internal planning efforts
sources, other (including internal
Government sources career development
(including programs) result in
military), and non- the selection of
Government sources. critical leaders.
Culture of Workforce Items from Annual To determine the
Improvement. Employee Survey. extent to which
employees believe
their leaders have
developed a culture
that values
personal growth.
------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION III--Leadership and Knowledge Management The Leadership and Knowledge Management System
System
-----------------------------------------------------------
Leadership Succession Management
-----------------------------------------------------------
Change Management
-----------------------------------------------------------
Integrity and Inspiring Employee Commitment
-----------------------------------------------------------
Continuous Learning
-----------------------------------------------------------
Knowledge Management
----------------------------------------------------------------------------------------------------------------
[[Page 23027]]
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Leadership Succession Management........... When the key elements of the critical success factor
Leadership Succession Management are effectively
implemented, agencies will realize the following results:
Effectiveness Result
The agency has taken action to ensure continuity
of leadership through succession planning and executive
development programs that results in a diverse pool of
qualified internal, other Government, and non-Government
sources for all mission-critical leadership positions.
Compliance Result
The agency has established a comprehensive
management succession program that provides training to
employees to develop them as managers for the agency as
prescribed by the Federal Workforce Flexibility Act of
2004.
The following pages provide key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
LEADERSHIP SUCCESSION MANAGEMENT
-----------------------------------------------------------------------------------------------------------------
Key Elements Suggested Performance Indicators
----------------------------------------------------------------------------------------------------------------
The agency has a leadership succession management
system that:
Is based on accurate data on the current Effectiveness Indicators
workforce. The agency's leadership development strategy
Is based on accurate projections of and policy, which reflect its mission and culture, are
attrition at all leadership levels.. developed, documented, and implemented, based on the
Identifies a diverse pool of high- agency's workforce analysis and succession planning
potentialleaders through a fair and accurate process.
process.. The agency performs an ongoing workforce
Includes a formal process to address analysis to identify current and future workforce and
management potential.. related leadership needs. The analysis includes
information concerning:
--Workforce size
--Workforce deployment by location, function, and
occupation
--Leadership competencies needed for mission
accomplishment
--Trends in hiring, promotion, reassignment, and
attrition in leadership positions
--Trends in competency needs (e.g., surpluses and gaps
in specific skills).
--A forecast of future leadership requirements and
changes due to retirement and other losses
--Inclusion of all demographic groups.
A succession planning process based on
workforce analysis is in place that considers current
and future leadership needs to meet strategic and
performance plans. The plan includes:
--Specific goals and identification of leadership
positions needed
--Target positions and key leadership competencies
(i.e., a leadership competency model based on the
Office of Personnel Management (OPM) executive core
qualifications (ECQs) plus appropriate agency-specific
competencies)
--Potential sources of talent (e.g., internal, other
Government, non-Government) that best support the
agency's mission and culture
--Recruitment or development strategies needed to
ensure availability of well qualified staff to fill
leadership positions at all levels including
identification of high-potential employees and
establishment of a formal Senior Executive Service
(SES) candidate development program, other merit-based
methods of developing future executives, and/or other
appropriate development programs.
The agency conducts regular assessments of
leadership policies and performance of its leaders to
ensure that succession planning goals (e.g.,
recruitment and retention of high-performing leaders)
are being met.
Invests in an SES candidate development Effectiveness Indicators
program linked to the ECQs. The agency leadership has demonstrated its
Provides mentoring to new and prospective commitment to leadership development through
leaders.. dedication of resources (e.g., appropriate percentage
Invests in first-line supervisors to of salaries set aside specifically for leadership
ensure they have the competencies to direct the development) to develop current and future leaders.
day-to-day work of the agency.. Trained mentors are available to employees
Includes an ``employee development'' participating in development programs.
performance indicator for managers and senior
leaders..
Compliance Indicator
As prescribed by 5 CFR 412, the agency has
established a system to provide:
--The competencies needed by supervisors, managers, and
executives to perform their current functions at the
mastery level of proficiency
--Learning through development and training in the
context of succession planning and corporate
perspective to prepare individuals for advancement.
[[Page 23028]]
Invests in the continuous development of Effectiveness Indicators
senior leadership Leadership skill training and development
programs address the needs of each level of management
(e.g., supervisors, managers, executives, and
potential leaders). These programs have been
communicated to all levels of management and potential
leaders and are reflected in Individual Development
Plans (IDPs) for this group.
Training and development needs are identified
in IDPs by obtaining input from multiple sources
(e.g., customers, peers, subordinates, supervisors).
IDPs are monitored and include training and
experiential development. Identified needs are
generally being met.
The agency's annual training needs assessment
reflects needs identified in IDPs. Training is
targeted to meet the most commonly identified needs.
Employee survey results, including the Federal
Human Capital Survey, indicate that employees believe
that leadership development receives appropriate
emphasis and dedicated resources and results in
effective leaders who are a source of motivation.
Agency leadership development programs are
analyzed against agency measures of success to
determine usage and impact including statistical data
on average grade or pay band/age/length of service,
diversity, attrition, and retirement eligibility. The
analysis is documented and used by senior management
to make decisions about leadership development issues
and resource allocation.
Compliance Indicator
The agency has a program to provide training
to managers on actions, options, and strategies to use
in (1) communicating with employees whose performance
is unacceptable, and (2) mentoring employees and
improving employee performance and productivity as
prescribed by the Federal Workforce Flexibility Act.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION III--Leadership and Knowledge Management The Leadership and Knowledge Management System
System
-----------------------------------------------------------
Leadership Succession Management
-----------------------------------------------------------
Change Management
-----------------------------------------------------------
Integrity and Inspiring Employee Commitment
-----------------------------------------------------------
Continuous Learning
-----------------------------------------------------------
Knowledge Management
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Change Management.......................... When the key elements of the critical success factor
Change Management are effectively implemented, agencies
will realize the following result:
Effectiveness Result
The agency has in place leaders who understand
what it takes to effectively bring about changes that
achieve significant and sustained improvements in
performance.
The following page provides key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
CHANGE MANAGEMENT
-----------------------------------------------------------------------------------------------------------------
Key Elements Suggested Performance Indicators
----------------------------------------------------------------------------------------------------------------
The agency has a change management system in which
leaders:
Provide adequate resources to support the Effectiveness Indicators
change. Annual performance plans, budgets, and
Take visible actions to support new ways performance reports document plans for and progress
of working.. toward change goals.
Understand there is a need for a change Individual performance plans rate leaders and
process and facilitate the change management managers on their implementation of change
process by monitoring and addressing problems in initiatives.
the transition process.. Newsletters, intranet, and other agency media
Hold people accountable for performance show efforts to share a vision for change.
results and meeting their commitments to the The agency has a strategy and plan for
change process.. communication of change.
Focus on performance and progress against The Federal Human Capital Survey (FHCS) and/or
change milestones.. other climate surveys are conducted and analyzed and
relevant results lead to change in strategy.
----------------------------------------------------------------------------------------------------------------
[[Page 23029]]
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION III--Leadership and Knowledge Management The Leadership and Knowledge Management System
System
-----------------------------------------------------------
Leadership Succession Management
-----------------------------------------------------------
Change Management
-----------------------------------------------------------
Integrity and Inspiring Employee Commitment
-----------------------------------------------------------
Continuous Learning
-----------------------------------------------------------
Knowledge Management
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Integrity and Inspiring Employee Commitment When the key elements of the critical success factor
Integrity and Inspiring Employee Commitment are
effectively implemented, agencies will realize the
following results:
Effectiveness Results
Leaders maintain high standards of honesty and
ethics that serve as a model for the whole workforce;
employees respond by maintaining high standards of
honesty and ethics.
Leaders promote teamwork and communicate the
organization's shared vision to all levels of the
organization, and seek feedback from employees.
Compliance Result
The agency complies with the Ethics in Government
Act of 1978 and other statutory and governing guidance
compiled by the Office of Government Ethics to cover
conflict of interest and ethics. The agency also complies
with its own supplemental standards of conduct.
The following pages provide key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
INTEGRITY AND INSPIRING EMPLOYEE COMMITMENT
-----------------------------------------------------------------------------------------------------------------
Key Elements Suggested Performance Indicators
----------------------------------------------------------------------------------------------------------------
Employee integrity and commitment is in evidence when:
Senior leaders foster an environment of Effectiveness Indicators
open communication (top-down and bottom-up The FHCS and/or other employee climate sureys
communication) throughout the agency. reflect a positive, committed work environment.
Employees view the agency as a desirable Human resources staff, in partnership with
place to work.. management, seeks anhd considers continuous feedback
Teamwork is valued and rewarded in the from employees (e.g., focus groups) regarding
agency.. workplace environment and responds to feedback with
Agency policies reinforce the Office of appropriate action.
Government Ethics Standards of Ethical Conduct for Agency has been cited in applicant feedback
Executive Branch Employees and, at a minimum, meet and media stories as an employer of choice.
the Office's requirements for ethics training. Agency awards policy promotes teamwork through
Ethical behavior and standards are included in the use of group awards and communication of group
competencies for all employees. Programs for successes.
identifying violations exist and leaders take Agency analyzes trends across management
appropriate disciplinary actions.. indicators such as per capita overtime, worker's
compensation charges, sick leave usage, forfeiture of
annual leave, turnover, removal of probationers,
disciplinary actions, adverse actions (5 CFR part
752), and exit interviews.
Senior leaders sign statements of conduct or
agency-wide declarations.
The FHCS and/or other employee surveys report
that an ethical climate exists, that employees are
aware of their whistleblower rights and other
personnel protections, and they are likely to report
wrongdoing.
Agency has a whistleblower support and
Inspector General hotline program; activities are
recorded and analyzed.
Communication strategies include a variety of
media to convey senior leadership's message to the
workforce.
Agency has a positive record in program
reviews and congressional reviews.
Employee integrity and commitment is in evidence when: Compliance Indicators
Agency is certified by the Office of Special
Counsel to be in compliance with the 5 U.S.C 2302(c)
requirement that the workforce be informed of
whistleblower rights and other personnel protections.
Provides current and future leaders with an
annual course on Government ethics.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION III--Leadership and Knowledge Management The Leadership and Knowledge Management System
System
-----------------------------------------------------------
Leadership Succession Management
===========================================================
Change Management
===========================================================
[[Page 23030]]
Integrity and Inspiring Employee Commitment
===========================================================
Continuous Learning
===========================================================
Knowledge Management
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Continuous Learning........................ When the key elements of the critical success factor
Continuous Learning are effectively implemented, agencies
will realize the following results:
Effectiveness Results
The agency has achieved a culture of continuous
learning through investments in education, training, and
other developmental opportunities that help employees
build mission-critical competencies.
Training and development initiatives and
strategies support mission-critical competencies, are
linked to the agency mission, and have demonstrated a
positive impact on agency mission performance.
The agency uses appropriate learning technology
and innovative learning strategies to meet the training
and development needs of the workforce.
The agency has developed and implemented a
process to evaluate its training and development program
impact in terms of learning, performance, work
environment, and contribution to mission accomplishment.
The results of the evaluation reflect a positive
contribution to mission accomplishment.
Compliance Results
As prescribed by the CHCO Act of 2002 (5 U.S.C.
1402), the agency CHCO has developed and advocates a
culture of continuous learning to attract and retain
employees with superior abilities and sets the workforce
development strategy.
The agency's training programs comply with the
provisions of 5 U.S.C. 4101 and 5 CFR 410 and 412.
As provided in the CHCO Act of 2002 (5 U.S.C.
1304), the agency:
--Sustains a culture that cultivates and develops a high-
performing workforce.
--Develops and implements a knowledge management strategy
supported by appropriate investment in training and
technology.
The following pages provide key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
CONTINUOUS LEARNING
-----------------------------------------------------------------------------------------------------------------
Key Elements Suggested Performance Indicators
----------------------------------------------------------------------------------------------------------------
The agency has a continuous learning system that:
Is based on accurate information from IDPs Effectiveness Indicators
and an annual organizational needs analysis. A training needs assessment is conducted that
Focuses on mission-critical occupations... is linked to strategic and mission-critical
competencies. Based on assessment results, employees
are trained in specific, job-related skills and
knowledge.
Training programs are designed and implemented
which build competencies that are important to
strategic goals and objectives and the agency's
performance plan execution.
--Competency-based career development programs,
including various development activities and learning
opportunities, have been implemented and documented
and are being used by employees.
--Competency models have been established which
document standards for competency levels (e.g., entry,
journey, expert).
IDPs, or a similar process, are established
for employees in mission-critical occupations. IDP
completion is tracked and review indicates that IDPs
are being completed in most cases.
Performance evaluations reflect consideration
of employee developmental training and developmental
needs. Review indicates that action is usually taken
to follow through on meeting these needs.
Agency policy and practice reflect that
responsibility for employee development is shared
between employees and managers.
Compliance Indicators
In accordance with 5 CFR 410, the agency
assesses training needs annually.
The agency closes skill gaps in mission-
critical occupations in accordance with the CHCO Act
(5 U.S.C. 1304).
Uses a wide variety of methods including Effectiveness Indicators
classroom training, distance learning, mentoring, The agency conducts an analysis to select and
and experiential learning. implement the best array of learning strategies (e.g.,
Encourages attendance at conferences, rotational assignment, shadowing, mentoring) for the
workshops, and seminars.. targeted audience(s) to provide them with mission-
critical competencies.
Learning technology and other alternative
learning strategies are reflected in the agency's
strategic human capital planning documents and
training plans.
Where appropriate, the agency has implemented
e-learning activities such as eGov Online Learning
Center.
The agency has invested in the infrastructure
necessary to leverage learning opportunities that
include the application of reasonable accommodation,
where justified by return-on-investment analysis.
[[Page 23031]]
Leaders are responsible for leadership
development and emphasize the value of learning,
foster learning opportunities for employees, and
demonstrate their support through personal involvement
and resource allocation decisions. For example, they:
--Set aside a percentage of salary dollars for employee
training and development.
--Provide tuition assistance for formal education.
--Establish long-term technical development programs.
--Fund employee certification requirements as
authorized.
Policies, practices, and resource allocation
decisions demonstrate agency support for continuous
learning.
Is properly funded, monitored, and Effectiveness Indicators
evaluated.
Is administered fairly. Employee survey results, including the Federal
Human Capital Survey, indicate that employees believe
they have appropriate opportunities to develop skills
through training and experience.
Analysis of education, training, and
development opportunities shows no disparate treatment
of segments of the workforce (i.e., training is
appropriately aligned with workforce planning goals,
priorities are based on available funding, and
opportunities are provided equitably across the
employee population).
A training evaluation system has been
implemented which measures the impact of training at
the following levels:
--Did learning occur?
--Was learning applicable to job performance or other
behavior that is important to the organization and to
results?
--Did the employee apply the learning or behavior to
his/her job or work environment?
--If the employee applied the learning, did it have the
expected impact on performance or other job-related
behavior?
An analysis has been conducted of the
evaluation results and this information is used to
make decisions about investments in employee training
and development. Generally, the evaluation indicates
that training and development investments are making a
positive impact on the organization's performance and/
or work environment and meet the training goals and
expectations established between supervisors and
employees prior to participation in training.
Compliance Indicators
As prescribed by the Federal Workforce
Flexibility Act, the agency has evaluated each
training program or plan established, operated, or
maintained with respect to accomplishing specific
performance plans and strategic goals in performing
the agency mission; and the agency has modified such
programs or plans to accomplish goals.
As established by 5 CFR 410.601, the agency
evaluates training to determine how well it meets
short- and long-range program needs by occupations,
organizations, or other appropriate groups.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION III--Leadership and Knowledge Management The Leadership and Knowledge Management System
System
-----------------------------------------------------------
Leadership Succession Management
===========================================================
Change Management
-----------------------------------------------------------
Integrity and Inspiring Employee Commitment
-----------------------------------------------------------
Continuous Learning
-----------------------------------------------------------
Knowledge Management
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Results: Knowledge Management....................... When the key elements of the critical success factor
Knowledge Management are effectively implemented,
agencies will realize the following results:
Effectiveness Results
The agency has developed and implemented a
knowledge management process that provides a means to
share critical knowledge across the organization.
Leadership also encourages and rewards knowledge sharing.
Information technology tools that facilitate
gathering and sharing knowledge within and outside the
agency are available to employees to improve individual
and organizational performance.
Compliance Result
[[Page 23032]]
As prescribed in the Chief Human Capital Officers
(CHCO) Act of 2002 (5 U.S.C. 1304), the agency has
developed and implemented a knowledge management strategy
supported by appropriate investments in training and
technology.
The following page provides key elements and suggested
performance indicators for this critical success factor.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
KNOWLEDGE MANAGEMENT
-----------------------------------------------------------------------------------------------------------------
Key Elements Suggested Performance Indicators
----------------------------------------------------------------------------------------------------------------
The agency has a knowledge management system that:
Captures, indexes, processes, and easily Effectiveness Indicators
retrieves data that may be composed of text, A knowledge management process has been
audio, video, and Web-based elements developed, documented, and systematically shared with
Facilitates the sharing of knowledge and employees. Training and/or orientation is provided to
best practices throughout the agency. the workforce. An infrastructure which facilitates
Maintains active participation in knowledge capture, indexing, processing, and retrieval
communities of practice outside the agency. is established to support knowledge sharing through
Establishes communities of practice for the use of the intranet, shared networks, and
sharing key knowledge at all managerial and communities of practice and/or best practices.
leadership levels.. The agency has analyzed the use of the
knowledge-sharing process and established the utility
and usage of the process and tools.
--Knowledge sharing has been established as an
organizational value through management communications
and recognition of employees who exemplify the
practice of knowledge sharing.
--Requirements and specifications for tools support
work performed by employees.
The agency has begun codifying knowledge
through the use of the intranet, shared networks, and
communities of practice and/or best practices.
Compliance Indicator
As prescribed in the CHCO Act (5 U.S.C. 1304),
the agency has developed and implemented a knowledge
management strategy supported by appropriate
investments in training and technology.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SECTION IV--Results-Oriented Performance Culture The Results-Oriented Performance Culture System
System
-----------------------------------------------------------
Communication
-----------------------------------------------------------
Performance Appraisal
-----------------------------------------------------------
Awards
-----------------------------------------------------------
Pay for Performance
-----------------------------------------------------------
Diversity Management
-----------------------------------------------------------
Labor/Management Relations
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
The Results-Oriented Performance Culture System..... This section contains information specific to the Results-
Oriented Performance Culture system, which focuses on
having a diverse, results-oriented, high-performing
workforce, as well as a performance management system
that effectively plans, monitors, develops, rates, and
rewards employee performance.
Definition.......................................... A system that promotes a diverse, high-performing
workforce by implementing and maintaining effective
performance management systems and awards programs.
Standard............................................ The agency has a diverse, results-oriented, high-
performing workforce and a performance management system
that differentiates between high and low levels of
performance and links individual/team/unit performance to
organizational goals and desired results effectively.
Critical Success Factors............................ The Results-Oriented Performance Culture system is
comprised of the following critical success factors that
work together to create a diverse, results-oriented, high
performance workforce:
Communication: The agency has a process for
sharing information and ideas about the organization with
all employees. This vital process includes eliciting
employee feedback and involvement so that all employees
play an appropriate role in planning and executing the
mission.