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#### **HUMAN CAPITAL PLAN** 

# ![](media/image2.jpeg){width="1.25in" height="1.25in"}FY 2003 -- FY 2007

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Number range CHAPTERREE HUMAN CAPITAL PLAN

TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

INTRODUCTION 4

HUMAN CAPITAL PLAN STRUCTURE 6

HUMAN CAPITAL KEY ELEMENTS, IMPROVEMENT GOALS, AND STRATEGIES 8

> KEY ELEMENT 1: STRATEGIC ALIGNMENT AND HUMAN CAPITAL
>
> PLANNING 8
>
> KEY ELEMENT 2: WORKFORCE PLANNING AND DEPLOYMENT 10
>
> KEY ELEMENT 3: ACCOUNTABILITY SYSTEM 12
>
> KEY ELEMENT 4: TALENT MANAGEMENT 14
>
> KEY ELEMENT 5: LEADERSHIP DEVELOPMENT AND SUCCESSION
>
> PLANNING 16
>
> KEY ELEMENT 6: KNOWLEDGE MANAGEMENT AND EMPLOYEE 18 DEVELOPMENT 18
>
> KEY ELEMENT 7: PERFORMANCE MANAGEMENT 20
>
> KEY ELEMENT 8: DIVERSITY MANAGEMENT, EQUAL EMPLOYMENT OPPORTUNITY AND
> CIVIL RIGHTS 22
>
> KEY ELEMENT 9: LABOR AND EMPLOYEE RELATIONS AND

CONFLICT MANAGEMENT 24

PRESIDENT'S MANAGEMENT AGENDA COORDINATION 26

APPENDIX A: ACTION PLAN SUMMARY 28

APPENDIX B: CIVIL RIGHTS POLICY STATEMENT 34

APPENDIX C: IMPACTS ON WORKFORCE PLANNING 35

APPENDIX D: STRATEGIC PLANNING FRAMEWORK 39

> REE STRATEGIC PLAN GOALS AND OBJECTIVES 40

**EXECUTIVE SUMMARY**

The Research, Education and Economics (REE) agencies have prepared new
strategic plans that will guide their efforts over the next five years.
The foundation for the strategic plans is the Administration=s Policy
Report: "Taking Stock For The New Century@ and the USDA Strategic Plan
which lay out the long term view of the Nation=s agricultural and food
system. Effective implementation of the strategic plans will enable REE
to meet the challenges articulated in the Administration's policy
report. Our success depends in large part on a REE workforce that is
highly motivated, skilled, flexible and technologically adept. Human
capital planning is critical to ensuring that the REE workforce is
capable of providing effective leadership on food, agriculture,
research, resources and related issues.

The Human Capital (HC) Plan establishes a framework of policies and
practices that will guide efforts in meeting these workforce needs. It
contains interdependent improvement goals and actionable strategies that
will transform how REE managers assess, plan for and respond

pro-actively to human capital challenges and needs. The plan commits REE
to the following Key Elements and Improvement Goals:

> **Strategic Alignment/Human Capital Planning:** Institute a practice
> of systematic human capital management that is aligned with the USDA
> HC Plan, the REE and agency strategic plans and the budget.
>
> **Workforce Planning and Deployment:** Conduct workforce planning to
> identify current and future skills gaps in order to efficiently and
> effectively deploy the REE workforce.
>
> **Accountability System:** Ensure human resources programs are
> strategically aligned, effective and efficient, and in compliance with
> applicable laws, rules, regulations and the President's Management
> Agenda (PMA).
>
> **Talent Management:** Align recruitment and retention strategies with
> workforce planning efforts to enhance the effectiveness of these
> efforts and close position and competency gaps.
>
> **Leadership Development and Succession Planning:** Ensure leadership
> continuity through comprehensive succession planning and leadership
> development programs, and opportunities.
>
> **Knowledge Management and Employee Development:** Capture and share
> knowledge, and develop employee competencies to better perform the REE
> mission.
>
> **Performance Management:** Improve individual and organizational
> performance.
>
> **Diversity Management, Equal Employment Opportunity (EEO) and Civil
> Rights:** Ensure a diverse workforce with the necessary skills to
> accomplish mission and strategic goals.
>
> **Labor and Employee Relations, and Conflict Management:** Develop and
> maintain effective working relationships with labor organizations.

The REE HC Plan is a single source for performance expectations, time
lines and measures for meeting the human capital goals within USDA and
REE; a mechanism to respond to the Department regarding progress towards
meeting human capital goals; and a vehicle to examine and ensure greater
business efficiencies and cross-agency collaboration. The Plan will be
reviewed regularly to ensure its effectiveness as guidance on
maintaining a workforce capable of meeting the challenges to the farm
and food, production, and environmental systems.

INTRODUCTION

The purpose of this REE Human Capital (HC) Plan is to help managers make
smart investments in the current and future REE workforce.

REE faces human capital challenges now and in the future. Like other
Federal agencies, REE's workforce is aging and many employees are
reaching retirement eligibility. Over the next five years, a large
number of REE executives and managers, as well as scientific, technical,
and administrative employees, will be eligible for retirement. In
addition, REE's work is becoming more complex, requiring the workforce
to be skilled and trained in new ways of doing business, including
finding new responses to continuing threats to the nation=s homeland
security. REE customers expect first class service that requires
employees to be collaborative and to share information better and
faster. Retaining a competitive advantage in the U. S. food and
agricultural sector depends on attracting, developing and retaining top
talent in leadership positions and crucial scientific fields.

The HC Plan was developed in response to the following human capital
imperatives:

> To ensure stated strategic goals are met, REE will lay the foundation
> for effective human capital management through on-going human capital
> and workforce planning efforts.
>
> To minimize the impact of leadership attrition and respond to new
> leadership competency requirements, REE will focus on leadership
> development and succession planning.
>
> To meet the mission, REE will develop strategies to attract
> scientists, economists, statisticians, and other mission area experts
> to maintain REE as a leader in world-class research, education, and
> information. REE will also develop stategies for recruitment and
> retention of technical and administrative staff to support the mission
> area experts.
>
> To ensure REE improves its citizen-centered structure and meets the
> goals of a
>
> market-based, results-oriented government entity, workforce planning
> activities will be coordinated with the Competitive Sourcing,
> eGovernment, Financial Management, and Budget and Performance
> Integration initiatives from the President's Management Agenda.
>
> To ensure a flexible, effective workforce, REE must undertake training
> and cultural change efforts. Areas of focus include: improving
> technology skills; improving customer service; and improving
> managerial business skills.
>
> To ensure the REE workforce is inclusive, and REE benefits from
> cultural diversity, REE agencies will maintain a strong civil rights
> program that communicates and reinforces the importance of cultural
> diversity and invites inclusiveness.

The REE HC Plan contains Key Elements and Improvement Goals. These
Elements and Goals are supported by Actionable Strategies and
Performance Measures. Appendix A is the action plan summary. The REE
Civil Rights Statement is found in Appendix B. This HC Plan has its
foundation in the REE and agency strategic plans, and is driven by
External, Internal, and

Cross-cutting Mission Drivers. These issues and events which impact REE
workforce planning are discussed in Appendix C. A summary of the REE
Strategic Framework is found in Appendix D.

REE Mission Area management has built a solid supporting infrastructure
of planning, communication, collaboration and accountability to
successfully implement the HC Plan. By carrying out their defined roles
and responsibilities, REE executive leadership, human resources staff,
agency managers, and employees can successfully implement the Plan. The
human capital strategies that have been identified will help REE
agencies excel in their work and serve their customers well.

The four agencies which make up the REE Mission Area are:

Agricultural Research Service (ARS)

Cooperative State Research, Education and Extension Service (CSREES)

Economic Research Service (ERS)

National Agricultural Statistics Service (NASS)

HUMAN CAPITAL PLAN STRUCTURE

Strategic management of human capital is necessary to ensure REE=s human
resources are effectively utilized in accomplishing the REE mission. The
HC Plan is intended to be flexible enough to accommodate circumstances
not only as they are today, but also as they unfold in the future.

The REE HC Plan development team was established in February 2003. Team
members included human resources professionals and one representative
from each of the REE agencies. The team first defined human capital
imperatives based on analysis of the REE and agency strategic plans,
cross-cutting mission drivers, and internal and external drivers.
Actionable strategies, priorities, milestones, and key measures were
developed to guide REE in achieving its human capital goals.

The REE HC Plan will be updated on a regular basis in relation to
changes in the Strategic Plan, new initiatives, etc. The REE HC Plan is
a single source for performance expectations and measures for meeting
human capital goals, a mechanism to respond to the Department,

OPM and OMB regarding progress toward meeting human capital goals, and a
vehicle to ensure business efficiency and a reduction in redundant
systems.

**Accountability:** REE will adopt the USDA Accountability System to
measure progress toward achieving effective human capital goals.

**Components:** The REE HC Plan is based on the framework of the USDA HC
Plan. This framework has three key objectives: 1) Conducting strategic
planning and alignment;

2\) Implementing integrated human resources systems; and 3) Creating a
high-performance

work culture.

The REE HC Plan includes the nine Key Elements outlined in USDA's Human
Capital framework. They are:

Strategic Alignment and Human Capital Planning

Workforce Planning and Deployment

Accountability System

Talent Management

Leadership Development and Succession Planning

Knowledge Management and Employee Development

Performance Management

Diversity Management, Equal Employment Opportunity (EEO), and Civil
Rights

Labor and Employee Relations, and Conflict Management

Each Key Element is presented in terms of improvement goals, actionable
strategies, and current initiatives. Timelines and measures to assess
progress are found in the Action Plan Summary, Appendix A.

**Roles and Responsibilities:** To successfully implement the REE HC
Plan, everyone, from top management to front-line employees, must be
committed to the plan and its goals. Following is a brief outline of
roles and responsibilities:

Secretary/Subcabinet Maintain and communicate commitment to the
Department HC

> initiative

Provide leadership and resources for human capital efforts

USDA/OHRM Provide leadership in development of human capital planning

Provide oversight and training for agency HC Plan efforts

Provide a mechanism for sharing best practices

Manage accountability for the Department=s HC Plan progress

Provide regular reports to the Secretary, OPM, and OMB

Agency Management Integrate human capital planning with business
processes Participate in the development, implementation, and oversight
of

human capital plans and initiatives

> Demonstrate commitment, support and leadership in human capital
> planning
>
> Communicate commitment to human capital investment and the
>
> achievement of human capital goals to all employees
>
> Work with the Human Resources Division and Civil Rights Staff to
> identify and resolve impediments to HC Plan goals and achievements

Human Resources Division Develop HC Plan with REE specific initiatives

> Facilitate the implementation of human capital actions/strategies
>
> Work with agency management to identify and resolve impediments to HC
> Plan goals and achievements
>
> Report to USDA on progress toward goals achievement

Employees Share information and knowledge on human capital issues with
other employees and management personnel

Provide feedback and suggestions to management

> Develop their technical skills
>
> Self-assess leadership capabilities and work toward obtaining
>
> leadership skills

**HUMAN CAPTIAL KEY ELEMENTS, IMPROVEMENT GOALS,**

**AND STRATEGIES**

The following sets forth the Key Elements, Improvement Goals, and
Actionable Strategies of the REE HC Plan.

KEY ELEMENT 1: STRATEGIC ALIGNMENT AND HUMAN CAPITAL PLANNING

Human capital goals are embedded in the REE strategic and workforce
plans. Human Resources Division (HRD) provides human resources services
to all four agencies. The HR Director serves on the USDA Human Resources
Leadership Council, and with the other USDA HR Directors discusses,
reviews and enacts human capital initiatives at the Department level. A
number of other employees serve on USDA committees and task forces
working on human capital and related initiatives. Recognizing that
agency managers and supervisors are responsible for investment in human
capital, HRD will assist agency management in implementing human capital
initiatives.

Improvement Goal 1: Institute a Practice of Systematic Human Capital
Management that is Aligned with the USDA HC Plan, the REE and agency
Strategic Plans, and the Budget

Actionable Strategies: (\*\*\* Denotes USDA HC Plan Strategies)

Develop a Human Capital Plan for the REE Mission Area.

Support USDA human capital initiatives. Participate in collaborative
efforts by providing representatives for working groups and sharing best
practices.\*\*\*

Use the HC Plan in alignment with the strategic plan and in conjunction
with the budget to set priorities for resource allocations and funding
requests.\*\*\*

Implement a HC Plan communications strategy, including use of the web,
to ensure stakeholder participation in and understanding of their
responsibilities related to the HC Plan.\*\*\*

Participate in USDA forums on human capital to share best practices,
exchange ideas, and hold skill building workshops in order to further
the human capital endeavor. Develop similar workshops within REE.\*\*\*

Current Initiatives:

The REE agencies have undertaken a number of activities in the human
capital arena that form a basis for continued success in the human
capital effort. All REE agencies have undergone reorganizations or
restructuring and have developed integrated business plans to better
carry out their mission while continuing to better serve their
customers. ARS Administrative and Financial Management has established
customer service training requirements and customer service standards
that serve as a model for doing business. NASS has integrated its human
capital program into normal business processes and has made changes to
its awards program, career path plans, and employee development plans.
ERS, in response to the revolution in information technology and the
advent of the worldwide web as the primary communications tool,
restructured its administrative staff to capture the types of duties
that are needed now and in the future. A number of statistical assistant
positions, whose duties were obsolete, were abolished and replaced by
positions focused on web/data management, and quality control. This
forward-looking initiative served not only to modernize the workforce,
but to benefit the employees as well, since the newly created positions
were classifiable at higher GS grade levels.

CSREES underwent major reorganization in March 2002. The objectives were
to (1) improve

customer service, (2) clarify staff roles and responsibilities, (3)
consolidate management and

clarify points of agency entry, and (4) align agency structure and
goals. Paramount among the goals was to continuously improve the working
relationships among university partners and

others, as CSREES delivered an ever-increasing portfolio of funded
programs. This

reorganization has led to a more efficient organization. For example, a
key management

objective was to establish the Information Systems and Technology
Management (ISTM) unit.

CSREES manages a number of databases and the new structure provided for
integration of these

different databases into one structure that standardized procedures,
eliminated duplication and consolidated resources. The ISTM also is
responsible for the implementation of an electronic proposal submission
and grants award system that is critical to improving customer service
and meeting federal reporting requirements.

All REE agencies continue to review each vacant supervisory position to
determine whether the position can be redeployed to front-line program
work. During 2003, ARS, through the realignment of management units to
better accomplish program objectives, redeployed two research leader
positions to full time bench research positions. ARS also recently
established the Office of Chief Information Officer (OCIO) by
consolidating three separate information technology units at
Headquarters. This consolidation will provide for better coordination of
information management and technology services both now and continuing
into the future.

KEY ELEMENT 2: WORKFORCE PLANNING AND DEPLOYMENT

In September 2002, USDA conducted a preliminary Skills Gap Analysis of
21 of their most critical occupational series (a Skills Gap Analysis
shows projected deficiencies in competencies and resources to adequately
perform the work of a unit). The analysis was based on series
population, mission criticality, recruiting difficulty and homeland
security responsibility, and included an inventory of required staff,
forecasted gaps based on historical accession and separation rates, and
projected gaps over a five-year period. This Skills Gap Analysis
reflected the relatively high percentage of USDA employees 50 years and
older and a projected retirement rate 55% above "normal" for the next
five years. A number of the REE mission-critical occupational series
were included in the analysis.

Improvement Goal 2: Conduct Workforce Planning to Identify Current and
Future Skills Gaps in Order to Efficiently and Effectively Deploy the
REE Workforce

Actionable Strategies: (\*\*\*Denotes USDA HC Plan Strategies)

Institute workforce planning in the REE agencies based on the USDA
model.\*\*\*

Conduct a Skills Gap Analysis in each REE agency.

Develop and implement workforce restructuring plans, as needed, that
incorporate competitive sourcing solutions and resource savings related
to eGovernment efficiencies.\*\*\*

Current Initiatives:

The CSREES Executive Council, with Human Resources representatives,
periodically meets to discuss priorities for short-term, intermediate,
and long-term staffing needs. This allows the agency to (1) operate as
one integrated organization with staffing aligned with program
responsibilities, (2) integrate planning and recruitment across
organizational units,

\(3\) review key support positions to ensure consistency across units,
and (4) discuss recruitment and retention strategies. The criteria for
staffing priority program areas include (1) centrality of program to
mission of CSREES and USDA, (2) complexity of program development and
delivery, including stakeholder activity and multi-agency involvement,
(3) the level of current and likely program funding and the type of
funding mechanism, and (4) array of staff in same and related areas
currently in CSREES.

The ARS is currently conducting five competitive sourcing studies,
covering three management units in the Beltsville Area and two units in
the Midwest Area. ARS also has conducted a skills gap analysis of a
mission-critical occupation, Veterinary Medicine. The results of the
analysis showed a critical shortage of qualified candidates for ARS
Research Veterinary Medical Officer positions. As a result, ARS
developed the ARS Veterinary Medicine Doctoral Program in

conjunction with five universities (the program is a competitive
training opportunity).

The first announcement was published August 18, 2003, with the
expectation that the first student will begin classes in January 2004.
Program plans call for the training of two students per year for the
next 5 years.

For many years NASS has utilized long-term training programs in
specialty areas (mathematical statistician, computer science, etc.) in
conjunction with universities to train employees in these fields to
enhance their careers and eliminate projected employee shortages in
these areas.

ERS recently conducted a workforce/skills gap analysis of
mission-critical positions and is currently developing strategies for
closing those gaps and preparing the workforce to be able to carry out
the ERS mission in the future.

When workforce planning capability is further developed, REE will focus
on sharing and promoting best practices among its agencies. Although the
mission and size of each of the REE agencies vary, human capital
practices that work efficiently in one agency will be reviewed for
applicability to the other agencies.

KEY ELEMENT 3: ACCOUNTABILITY SYSTEM

The development of the HC Plan, along with goals, strategies, time lines
and measures directly linked to strategy, is the first step in
developing a comprehensive standardized accountability program. It is
important to fully address effectiveness, efficiency and compliance with
applicable rules and regulations. REE will follow the Department's
Accountability Program since all USDA agencies are responsible and
required to report to it. Each year the Department will designate
program areas to be reviewed and evaluated for compliance as well as
program effectiveness.

REE will supplement the USDA Accountability Plan with other measures to
formulate a comprehensive system that establishes standards and provides
useful assessment tools for the agencies. REE already has identified key
human resources services and established qualitative and quantitative
customer service standards.

Improvement Goal 3: Ensure REE Human Resources Programs are
Strategically Aligned, Effective and Efficient, and in Compliance with
Applicable Laws, Rules, Regulations, and the President's Management
Agenda

Actionable Strategies: (\*\*\*Denotes USDA HC Plan Strategies)

Systematically evaluate agency programs using the processes, tools and
standards found in the USDA Accountability Plan.\*\*\*

Provide timely accountability reports to USDA on progress in meeting the
Accountability Plan goals and actions.\*\*\*

Continue to utilize Human Resources Management Evaluation (HRME), Human
Capital Management Assessment (HCMA), Consolidated Administrative Review
and Evaluation (CARE) and other programs that provide human resources
improvements and data needed for planning.

Current Initiatives:

The REE agencies have a history of reviewing human capital management
for effectiveness and compliance. NASS has conducted Human Resources
Management Evaluations (HRME) of their office entities for many years
with excellent human resources results. ARS has performed Consolidated
Administrative Review and Evaluations (CARE) reviews of their field
offices and individual HQ units for approximately the last 10 years. The
CARE program's purpose is to review all administrative processes and
procedures, including human resources. Recently ARS developed a Human
Capital Management Assessment (HCMA) program that gathers information
and analyzes data on a number of human resources-related and
employee-related items. It is designed to provide management with the
requisite information to improve human capital management. CSREES and
ERS have performed special studies (usually tied to reorganization,
realignment or functional work changes) that have targeted the human
resources needs of their agencies and employees.

KEY ELEMENT 4: TALENT MANAGEMENT

Because of projected retirements, competition from private industry, and
increasingly complex work, and the need for new technology skills, the
REE agencies must employ aggressive recruitment and retention
strategies. Recruitment strategies include use of recruitment
incentives, repayment of student loans, and availability of flexible
work schedules and work/life programs. Important among retention
strategies are employee empowerment and

self-actualization, trust, and new and aggressive use of work/life
programs.

Improvement Goal 4: Align Recruitment and Retention Strategies with
Workforce Planning Efforts to Enhance the Effectiveness of these Efforts
and Close Position and Competency Gaps

Actionable Strategies: (\*\*\*Denotes USDA HC Plan Strategies)

Develop and align recruitment and retention plans with workforce
planning and deployment plans to focus on mission-critical positions as
well as existing and potential competency gaps.\*\*\*

Fully utilize the Senior Scientific Research Service (SSRS) program.

Continue to use, promote and explore the use of human resources
flexibilities to recruit and

retain employees.\*\*\*

Support legislative changes to eliminate impediments in the government
human resources processes.

Continue to use senior program managers and supervisors in recruiting
activities, especially those focused on meeting diversity goals and
filling mission-critical positions.\*\*\*

Current Initiatives:

The REE agencies have been very active in striving to hire and retain
quality employees. Each of the agencies has a professional recruitment
plan which best serves its needs, whether it involves hiring primarily
at the entry level, hiring at the journeyman level and/or hiring at the
managerial level. REE uses all available HR flexibilities to recruit a
diverse, highly qualified work force: USDA DEMO authority, Delegated
Examining authority, and the use of standing registers, as well as
merit/alternative merit promotion. Categorical ratings, as provided in
the Department of Homeland Security legislation, will be looked at for
implementation in CSREES, ERS, and NASS, as another tool supervisors can
use to fill vacancies.

The agencies have targeted colleges, professional associations and other
professional contacts with information regarding their mission,
positions, benefits, etc. and maintain these contacts even in times of
low hiring activity. REE will take into account the results of Skills
Gap Analysis to assist in identifying future recruitment needs and
critical position skills for mission-critical positions as well as
technical, administrative, and clerical positions.

Existing hiring flexibilities such as superior qualification
appointments, recruitment incentives, relocation bonuses, student loan
repayments, career intern programs and other initiatives have been used
to help recruit and retain talent. In FY 2002, ARS reported the
Department's only use of repayment of student loans as a recruitment
incentive (2 incidents). REE agencies will continue utilizing these HR
flexibilities and communicate their existence and benefit to the
organization to all REE managers. In addition, REE utilizes and promotes
the use of teleworking, flexible work schedules, transportation
subsidies, pre-tax parking benefits, and childcare tuition assistance
(planned for 2004) in all of their recruitment and retention efforts.

REE also plans to continue to push for changes in government hiring
regulations that can foster more streamlined hiring and job
classification processes.

The Farm Security and Rural Investment Act of 2002 established within
USDA a special category for distinguished world-class scientists, the
Senior Scientific Research Service (SSRS). The program benefits ARS and
ERS, allowing the USDA Secretary to recruit, appoint and pay

world-class research scientists without regard to the pay limitations of
Title 5 U. S. Code. The SSRS will boost REE's competitive ability to
attract and retain high-caliber research scientists. ARS recently
received approval from the Secretary to recruit and fill two positions
using this authority.

KEY ELEMENT 5: LEADERSHIP DEVELOPMENT AND SUCCESSION PLANNING

Commitment to developing leaders and having a plan for replenishing the
pipeline of supervisory and managerial talent is key to REE's success.
Like most other Federal agencies,

a substantial percentage of our SES, managerial and supervisory
workforce is eligible to retire within the next 5 years. REE will take
aggressive steps to ensure there is an adequate pool of trained
employees eligible to assume leadership positions as they become
available.

Improvement Goal 5: Ensure Leadership Continuity through Comprehensive
Succession Planning and Leadership Development Programs and
Opportunities.

Actionable Strategies: (\*\*\*Denotes USDA HC Plan Strategies)

Communicate best practices within REE and from other agencies/private
industry to all managers and other employees.

Develop comprehensive succession plans for leadership positions in each
agency.\*\*\*

Utilize OPM-developed core competencies in leadership development
programs.

Include the leadership function in the workforce planning and analysis
process to identify agency specific position and competency
requirements.\*\*\*

Develop and/or use OPM and other leadership development programs, to
prepare employees for leadership so that REE has a competitive internal
pool of candidates to fill future leadership vacancies.

Encourage the use of mentoring programs, coaches, and assessment tools
such as career mapping and 360 degree feedback assessment.

Current Initiatives:

The REE agencies have been and will continue to support the USDA SES
Candidate Development Program and other Department coordinated
leadership ventures including the Congressional Fellows program, the
Brookings Institute, the Federal Executive Institute (FEI), the National
War College, etc., supplementing the programs with other leadership
development offerings that provide participants with unique and valuable
learning experiences. REE will also continue to support and utilize
Intergovernmental Personnel Act exchanges or assignments and will
support the Department as it develops a tri-agency (with EPA and DOI)
rotational intern program. In addition, REE will continue to develop and
support agency leadership development programs while continually looking
for opportunities to upgrade and expand our course offerings.

REE will continue to formalize succession planning within the agencies.

NASS has built a comprehensive succession plan of training and work
assignments that prepares employees for top management positions and/or
technical positions in the agency.

ARS has developed Leadership Evaluation and Development (LEAD),
Professional Excellence and Knowledge (PEAK) and Path to Leadership
Program (PLP) to facilitate succession and leadership planning for both
administrative and scientific leadership positions. PEAK is for
executive development, PLP is targeted to help employees decide if they
would like to pursue a leadership position, and LEAD is targeted to
develop leaders among administrative management employees.

CSREES employees participate in the annual ESCOP/ACOP Leadership
Development program to better understand CSREES administered
university-based programs. In its thirteenth year, the program is
sponsored by the land grant university system and is designed to enhance
and shape the future of the system by developing future leaders for the
food and agriculture system.

Along with the Department, the REE will identify best practices within
its agencies and make them available to other agencies within and
outside the REE. REE managers will be kept informed of best practices of
other USDA and Government agencies as a method to ensure that all REE
managers have the resources necessary to perform their jobs. Where
feasible REE program ideas and training courses will be shared with
other agencies to save costs and streamline processes.

**KEY ELEMENT 6: KNOWLEDGE MANAGEMENT AND EMPLOYEE DEVELOPMENT**

REE leadership is committed to providing opportunities for employee
development, including formal classroom training and eLearning. A key
ingredient for the future is aligning training strategies to mission
accomplishment. Of equal importance, based on the projected high
retirement rates for employees in all occupations, is the ability to
retain and share knowledge.

There will be increased emphasis on coaching and mentoring in order to
close critical competency gaps. The advent of eLearning with its ability
to train many employees in a cost effective manner provides REE the
opportunity to further expand and build upon its knowledge base.

Improvement Goal 6: Capture and Share Knowledge and Develop Employee
Competencies to Better Perform the REE Mission

Actionable Strategies: (\*\*\*Denotes USDA HC Plan Strategies)

Actively participate in the USDA eGovernment and eLearning content and
knowledge management effort, implementing the Department strategy when
complete.\*\*\*

Participate in and support implementation of USDA eGovernment enterprise
efforts in establishing a learning management strategy, implementing
when available.\*\*\*

Assess the impact of current training strategies on closing competency
gaps and meeting business goals.\*\*\*

Develop or procure employee development programs and/or tools that lend
themselves to the development of core competencies needed in
mission-critical positions.

Develop methods to capture the knowledge of employees who retire, so
that new employees will have access to that knowledge base and the
retirees' years of corporate history.

Current Initiatives:

Each agency has excellent employee development programs focused on
upward mobility and advancement, technical training, supervisory
training, and executive development. Development ventures in customer
service, program management and financial management also contribute to
REE's efforts in employee development and closing the skills gap. ARS
recently announced a competitive training program, the ARS Veterinary
Medicine Doctoral Program, which is designed to ensure the availability
of a workforce equipped to conduct research in veterinary medicine. This
program is described in more detail under Key Element 2.

REE will closely monitor the proposed USDA Learning Management System
(LMS) and other eLearning and 21 eGovernment ventures. REE will also
monitor progress of the USDA content management team which is focused on
developing an enterprise system leading to improvements in organizing,
accessing, and using information, documents, and corporate knowledge.
This effort is critical to capturing the knowledge of employees retiring
from mission-critical positions.

KEY ELEMENT 7: PERFORMANCE MANAGEMENT

REE's performance management program success will be measured by the
extent to which it:

Aligns employee and team performance expectations with organizational
strategic plans

including performance goals and objectives;

Provides for employee performance evaluation that focuses on results and
objective

measures of performance based on established performance goals and
plans;

Uses the performance management process as a tool to improve continuous
two-way

communication of organizational, team, and employee performance
objectives and

accomplishments.

Linking performance to organizational goals and missions remains a
challenge. The Department recently began building on this process by
linking the Honor Awards categories to USDA strategic goals and
completed its first appraisal period for the SES employees linking the
performance management system to mission outcomes and business results.
The key for REE is to establish the same linkage to all managers' and
supervisors' performance standards and eventually to all employees'
standards.

Improvement Goal 7: Improve Individual and Organizational Performance

***Actionable Strategies:*** (\*\*\*Denotes USDA HC Plan Strategies)

Review existing performance appraisal plans to ensure linkage to
organization mission accomplishment for all employees, starting from the
SES (link subordinate standards to SES standards) and cascading down the
organization.\*\*\*

Assess the effectiveness of the performance management system
(performance appraisal, awards and recognition programs, etc.) to ensure
the systems recognize performance distinctions.\*\*\*

Current Initiatives:

USDA SES performance standards include the requirement that executives
seek employee feedback and make improvements based on that feedback. The
standards were implemented for the appraisal period beginning October
2002. NASS conducts a climate survey of all employees every other year
with the most recent survey conducted in 2001. After the survey is
completed implementation teams are formed to review survey
recommendations and develop improvement strategies if needed. ARS and
CSREES have recently completed all-employee surveys. These surveys meet
the requirements of the USDA SES performance criteria.

KEY ELEMENT 8: DIVERSITY MANAGEMENT, EQUAL EMPLOYMENT OPPORTUNITY AND
CIVIL RIGHTS

A diverse high-performing workforce and a discrimination-free workplace
are REE priorities. To achieve these priorities REE is firmly committed
to increasing the diversity of its workforce, providing equal
opportunity and ensuring civil rights. REE management works in
collaboration with its Human Resources Division, its Civil Rights Staffs
and diversity committees, and the Department to build and maintain a
diverse, high-performing workforce and create a discrimination-free
workplace.

Improvement Goal 8: Ensure a Diverse Workforce With the Necessary Skills
to Accomplish Mission and Strategic Goals

Actionable Strategies: (\*\*\*Denotes USDA HC Plan Strategies)

Ensure that Diversity, Civil Rights and EEO are properly aligned with
and incorporated, as appropriate, into all strategic planning and human
capital initiatives and annual performance plans.\*\*\*

Provide the Department with the requisite information to facilitate
their compilation and disclosure of data required to assess compliance
with civil rights, EEO, diversity and related reporting
requirements.\*\*\*

Incorporate diversity goals in workforce planning while continuing to
focus on attracting, hiring, developing and advancing applicants and
employees who are members of under represented and socially
disadvantaged groups.\*\*\*

Current Initiatives:

REE implements policies, programs, and activities created and promoted
at Department level. In addition, REE is executing and pursuing a broad
range of supporting activities to further the tenets of these programs.
These include hosting diversity conferences, conducting civil rights
assessments, conducting civil rights training, publishing newsletters
and related material, and numerous other forums to achieve diversity,
civil rights, and EEO objectives.

Each year ARS provides science internships for both high school and
college students, and recently entered into a partnership with
Hispanic-serving Miami-Dade County Community College, its first
association at the junior college level.

All four REE agencies participated in the 2003 Washington Internships
for Native Students (WINS) program, and annually support interns through
the 1890 Scholars, HACU Summer Internships, and other student programs.

CSREES established a Diversity Advisory Council (DAC) in August 2000 to
aid employees in fostering awareness and acceptance of differences and
to explore how the differences might be

used as assets to enhance work relationships. The annual Administrator's
Diversity Award was established in 2001 to recognize CSREES staff
accomplishments in achieving positive organizational outcomes in support
of diversity, pluralism, and related innovation in program design and
implementation. For the past year the CSREES intranet has a site
entitled "Holibrations" that highlights the holidays and celebrations in
the U. S. and around the world to encourage a broader understanding and
acceptance of diversity in the agency. CSREES periodically offers a
two-day multi-cultural awareness and appreciation course with a goal of
100% agency participation.

In an effort to promote equal opportunity and workforce diversity, NASS
has provided financial support to the Southern University's Beginning
Agricultural Youth Opportunity Unit (BAYOU) Program to encourage black
and other minority students to pursue an agriculture-related curriculum.
In addition, NASS annually conducts a very aggressive recruitment effort
at a variety of colleges and universities under the USDA Summer
Employment Program to identify and hire minorities, women and
individuals with disabilities to work nationwide for the agency as
student assistants. NASS also supports undergraduate students selected
under the USDA National Scholars Program being implemented at
Historically Black Colleges and Universities and at Hispanic-Serving
Institutions. These students are offered summer and intermittent
employment opportunities and permanent employment with NASS upon
successful completion of four-year degree graduation requirements.
Finally, NASS is implementing, on a continuing basis, a Memorandum of
Understanding with the University of Puerto Rico (Mayaguez Campus) as
part of an initiative to increase the existing level of diversity in the
agency.

KEY ELEMENT 9: LABOR AND EMPLOYEE RELATIONS AND

CONFLICT MANAGEMENT

About 15% of ARS employees are covered by bargaining units. Consistent
with applicable collective bargaining agreements, ARS will utilize the
conflict resolution process to resolve labor/employee relations
conflicts.

***Improvement Goal 9: Develop and Maintain Effective Working
Relationships with Labor Organizations***

***Actionable Strategies:*** (\*\*\*Denotes USDA HC Plan Strategies)

Develop a Labor-Management Relations (LMR) Strategic Plan.

Incorporate basic labor management relations and labor contract
administration training into new supervisory or related training
programs.\*\*\*

Continue to educate managers and supervisors on union contracts,
dealings, etc.

Participate in the development of and promote a standardized electronic
dispute record system for the Department.\*\*\*

Current Initiatives:

Labor and employee relations training is included in supervisory
training provided to the REE agencies. Included is information intended
to foster the appropriate use of conflict resolution techniques that
maintain union employees' legal rights under the established dispute
resolution system.

**PRESIDENT'S MANAGEMENT AGENDA**

**COORDINATION**

It is imperative that the REE HC Plan is coordinated with the other four
President's Management Agenda (PMA) initiatives: competitive sourcing,
financial management, expanding electronic government, and budget and
performance integration. The following summarizes the alignment areas.

COMPETITIVE SOURCING

The Department developed a Competitive Sourcing Plan in May 2002 and
established a working group in October 2002 to ensure consistent
application of competitive sourcing throughout the USDA. The REE is
represented on this working group and has its own competitive sourcing
working group. Five studies have been initiated. In addition, REE will
consider competitive sourcing during workforce planning efforts or major
restructuring efforts.

FINANCIAL MANAGEMENT

Improved financial management will be accomplished by educating managers
on sound financial management practices and holding managers accountable
in their program area. The HC Plan outlines an action strategy for
developing programs and tools that address crosscutting competency
development needs such as financial management. Additionally, the goal
of aligning the performance appraisal system with organization mission
accomplishment will support accountability related to financial
management.

EXPANDING ELECTRONIC GOVERNMENT

The Department published its eGovernment Strategic Plan in June 2002 and
has developed integrated eGovernment strategic plans. Each of the REE
agencies has developed plans that focus on improvements in electronic
service delivery for employees, external organizations, and citizens.
Two distinct eGovernment areas relate directly to human capital:
knowledge management and employee development. A Department human
capital action strategy requires content and knowledge management
systems to address human capital issues such as capturing retiree
knowledge. In addition, human resources representatives are working on
the development of an enterprise-wide learning management system under
this eLearning initiative. REE will be able to track courses, direct and
indirect training costs, attendance, types of training, facilities, etc.
There are a number of other eGovernment activities that can be
considered to increase the efficiency of program and administrative
staff.

**BUDGET AND PERFORMANCE INTEGRATION**

Strong human capital management such as skills building, workload
analysis, and improved accountability will aid Budget and Performance
Integration. The employee development goal specifying career planning
based on mission requirements will support developmental efforts in this
area. A Department initiative to develop a workforce planning model that
includes workforce analysis and is directly aligned with agency mission,
goals and objectives, will benefit this area and will be adopted or
modified for use in REE.

The HC Plan aligning the performance appraisal system with mission
accomplishments will support accountability related to budget and
performance integration. The new SES appraisal system already links
performance to mission accomplishment and strategic goals.

**APPENDIX A**

ACTION PLAN SUMMARY

REE HC Plan implementation is based on the time frames developed by the
Department. Time frames for actionable strategies defined specifically
by REE are based on REE resource, budget, and other constraints.
Progress on the key performance measures discussed in the Department HC
Plan are reported to the Department on a quarterly basis and are an
integral part of the REE action strategies.

The process for monitoring, analyzing and evaluating performance
measures is described in the USDA Human Capital Accountability Plan. REE
provides quarterly reports to USDA and ongoing tracking, monitoring, and
evaluation of the REE HC Plan implementation.

Key Element 1 - Strategic Alignment and Human Capital Planning

Goal 1: Institute a practice of systematic human capital management that
is aligned with the USDA HC Plan, the REE and agency strategic plans,
and the budget.

Measure 1: The REE Mission Area has developed human capital strategies
that are aligned with the REE and agencies' Strategic Plans or the
Annual Performance Plans by FY 04.

Actionable Strategies:

Develop a Human Capital Plan for the REE Mission Area

Timeline: Start -- 2^nd^ Qtr FY 03 Complete -- 1^st^ Qtr FY 04

Support the USDA Human Capital initiatives. Participate in their
collaborative efforts by providing representatives for working groups
and the sharing of best practices.\*\*\*

Timeline: Start - 1^st^ Qtr FY 03 Ongoing activity

Use the HC Plan in alignment with the strategic plan and in conjunction
with the budget to set priorities for resource allocations and funding
requests.\*\*\*

Timeline: Start - 1^st^ Qtr FY 04 Ongoing activity

Implement a human capital communications strategy, including use of the
web, to ensure stakeholder participation in and understanding of their
responsibilities related to the HC Plan.\*\*\*

Timeline: Start -- 2^nd^ Qtr FY 04 Ongoing activity

Participate in USDA forums on human capital to share best practices,
exchange ideas, and hold skill building workshops in order to further
the human capital endeavor. Develop similar workshops within REE. \*\*\*

Timeline: Start - 2^nd^ Qtr FY 03 Ongoing activity

Key Element 2 - Workforce Planning and Deployment

Goal 2: Conduct workforce planning to identify current and future skills
gaps in order to efficiently and effectively deploy the REE workforce.

Measure 2: All REE agencies have developed a workforce plan, including a
review of structure, by the end of FY 04.

Actionable Strategies:

Institute workforce planning in the REE agencies based on the USDA
model.\*\*\*

Timeline: Start - 4^th^ Qtr FY 03 Complete -- 1^st^ Qtr FY 04

Conduct a Skills Gap analysis in REE.\*\*\*

Timeline: Start -- 2^nd^ Qtr FY 04 Ongoing Activity

Develop and implement workforce restructuring plans, as needed, that
incorporate competitive sourcing solutions and resource savings related
to eGovernment efficiencies.\*\*\*

Timeline: Start - 1^st^ Qtr FY 04 Complete - 1^st^ Qtr FY 07

Key Element 3 - Accountability System

Goal 3: Ensure REE Human Resources programs are strategically aligned,
effective, and efficient, and in compliance with applicable laws, rules,
regulations, and the President's Management Agenda.

Measure 3: Percent of REE agencies showing progress on the Human Capital
Standards for Success.

Actionable strategies:

Systematically evaluate agency programs using the processes, tools and
standards found in the USDA Accountability Plan.\*\*\*

Timeline: Start - 2^nd^ Qtr FY 03 Ongoing activity

Provide timely accountability reports to USDA on progress in meeting the
Accountability Plan goals and actions.\*\*\*

Timeline: Start - 2^nd^ Qtr FY 03 Ongoing activity

Continue to utilize HRME, HCMA, CARE, and other programs that provide
human resources improvements and data needed for planning.

Timeline: Start - 1^st^ Qtr FY 03 Ongoing activity

Key Element 4 - Talent Management

Goal 4: Align recruitment and retention strategies with workforce
planning efforts to enhance the effectiveness of these efforts and close
position and competency gaps.

Measure 4: No REE mission-critical occupations with significant skills
gaps (less than 15%)

by FY 07.

Actionable strategies:

Develop and align recruitment and retention plans with workforce
planning and deployment plans to focus on mission-critical positions as
well as existing and potential competency gaps.\*\*\*

Timeline: Start -- 1^st^ Qtr FY 04 Complete - Ongoing activity with
review each FY 4^th^ Qtr

Fully utilize the SSRS program.

Timeline: Start -- 3^rd^ Qtr FY 03 Ongoing Activity

Continue to use, promote, and explore the use of human resources
flexibilities to recruit and retain employees.\*\*\*

Timeline: Start - FY 02 Ongoing Activity

Support legislative changes to eliminate impediments in the government
human resources processes.

Timeline: Start - 1^st^ Qtr FY 04 Ongoing activity

Continue to use senior program managers and supervisors in recruiting
activities, especially those focused on meeting diversity goals and
filling mission-critical positions.\*\*\*

Timeline: Start -- FY 02 Ongoing activity

Key Element 5 - Leadership Development and Succession Planning

Goal 5: Ensure leadership continuity through comprehensive succession
planning and leadership development programs and opportunities.

Measure 5A: Retention rate of employees in career GS-15 and SES
positions.

Measure 5B: Ratio of employees (GS-15 and above) enrolled in or having
completed a managerial development program or SESCDP program versus SES
career positions.

Actionable strategies:

Communicate best practices within REE and from other agencies/private
industry to all managers and other employees.

> Timeline: Start - 2^nd^ Qtr FY 04 Ongoing activity
>
> Develop comprehensive succession plans for leadership positions in
> each agency.\*\*\*
>
> Timeline: Start - 1^st^ Qtr FY 04 Complete -- 4^th^ Qtr FY 04
>
> Utilize OPM-developed core competencies in leadership development
> programs.
>
> Timeline: Start - 2^nd^ Qtr FY 04 Complete - 1^st^ Qtr FY 05
>
> Include the leadership function in the workforce planning and analysis
> process to identify agency specific position and competency
> requirements.\*\*\*
>
> Timeline: Start -- 1^st^ Qtr FY 04 Ongoing activity with review each
> FY 1^st^ Qtr

Develop and/or use OPM and other leadership development programs to
prepare employees for leadership so that REE has a competitive internal
pool of candidates to fill future leadership vacancies.

Timeline: Start -- 4^th^ Qtr FY03 Ongoing activity

> Encourage the use of mentoring programs, coaches, and assessment tools
> such as career mapping and 360 degree feedback.

Timeline: Start -- 4^th^ Qtr FY03 Ongoing activity

Key Element 6 - Knowledge Management and Employee Development

> Goal 6: Capture and share knowledge and develop employee competencies
> to better perform the REE mission.
>
> Measure 6A: Responses to the Government-wide Survey (GWS) Leadership
> and Knowledge Management questions are above the 3.00 indicator level.
>
> Measure 6B: All of the REE agencies' knowledge management strategies
> are in place by FY 07.

Actionable Strategies:

Actively participate in the USDA eGovernment and eLearning content and
knowledge management effort, implementing the Department strategy when
complete.\*\*\*

Timeline: Start - FY 03 Ongoing activity

Participate in and support implementation of USDA eGovernment enterprise
efforts in establishing a learning management strategy, implementing
when available.\*\*\*

Timeline: Start -- FY 03 Ongoing activity

Assess the impact of current training strategies on closing competency
gaps and meeting business goals. \*\*\*

Timeline: Start - 4^th^ Qtr FY 04 Ongoing activity

Develop or procure employee development programs and/or tools that lend
themselves to the development of core competencies, needed in
mission-critical positions.

Timeline: Start - 2^nd^ Qtr FY 04 Complete - 2^nd^ Qtr FY 07

Develop methods to capture the knowledge of employees who retire, so
that new employees will have access to that knowledge base and the
retirees' years of corporate history.

Timeline: Start -- 2^nd^ Qtr FY 04 Complete - 4^th^ Qtr FY 04

Key Element 7 - Performance Management

Goal 7: Improve individual and organizational performance.

Measure 7: Responses to OPM's Government-wide Survey questions on
performance culture are at or above the 3.00 indicator level.

Actionable Strategies:

Review existing performance appraisal plans to ensure linkage to
organization mission accomplishment for all employees, starting from the
SES (link subordinate standards to SES standards) and cascading down the
organization.\*\*\*

Timeline: Start -- 1^st^ Qtr FY 04 Ongoing activity

Assess the effectiveness of the performance management system
(performance appraisal, awards and recognition programs, etc.) to ensure
the systems address performance distinctions.\*\*\*

Timeline: Start - 1^st^ Qtr FY 04 Complete - 4^th^ Qtr FY 04

Key Element 8 - Diversity Management, Equal Employment Opportunity, and
Civil Rights

Goal 8: Ensure a diverse workforce with the necessary skills to
accomplish mission and strategic goals.

Measure 8A: Eighty (80) per cent of diversity goals met by FY 04.

Measure 8B: Development of diversity outreach strategy completed by FY
04.

Actionable Strategies:

Ensure that diversity, civil rights, and EEO are properly aligned with
and incorporated, as appropriate, into all strategic planning, human
capital initiatives and annual performance plans.\*\*\*

Timeline: Start - 1^st^ Qtr FY 04 Ongoing activity

Provide the Department with the requisite information to facilitate
their compilation and disclosure of data required to assess compliance
with civil rights, EEO, diversity and related reporting
requirements.\*\*\*

Timeline: Start - 2^nd^ Qtr FY 03 Ongoing activity

Incorporate diversity goals in workforce planning while continuing to
focus on attracting, hiring, developing, and advancing applicants and
employees who are members of under represented and socially
disadvantaged groups.\*\*\*

Timeline: Start -- 1^st^ Qtr FY 04 Ongoing activity

Key Element 9 - Labor and Employee Relations and Conflict Management

Goal 9: Develop and maintain effective working relationships with labor
organizations.

Measure 9A: Response to applicable Government-wide Survey (GWS) question
is at or above the 3.00 indicator level.

Measure 9B: Usage rate of, and percentage of disputes resolved through,
Alternative Dispute

Resolution (ADR) Program.

Actionable strategies:

Develop an LMR Strategic Plan

Timeline: Start -- 4^th^ Qtr FY 03 Complete -- 1^st^ Qtr FY 04

Incorporate basic labor management relations and labor contract
administration training into new supervisory or related training
programs.\*\*\*

Timeline: Start - FY 03 Complete -- 1^st^ Qtr FY 05

Continue to educate managers and supervisors on union contracts,
dealings, etc.

Timeline: Start - FY 03 Ongoing activity

Participate in the development of and promote a standardized electronic
dispute record system for the Department.\*\*\*

Timeline: Start - 4^th^ Qtr FY 03 Complete 3^rd^ Qtr FY 04

**APPENDIX B**

CIVIL RIGHTS POLICY STATEMENT

The REE embraces the Department=s civil rights policy of building and
maintaining a dynamic and effective workforce inextricably linked to
creating and sustaining:

High-quality, high-performing, diverse workforce, and

A workplace environment free from discrimination, harassment,
intolerance, and reprisal.

Underlying the accomplishment of our goals of service to customers and
efficient management are principles providing, ensuring, and promoting a
workplace where employees and applicants for employment are:

Treated equitably, fairly, and justly,

Assured equal opportunity for development and advancement,

Encouraged and supported to reach their full potential in the
performance of their job, and

Recognized and rewarded for their achievement and the value of their
contributions to

ensuring customers experience excellent customer service and equal
access to all programs.

Our civil rights policy prohibits reprisal, harassment, or
discrimination based on age, color, disability, national origin and
race, and where applicable family, parental or marital status, political
affiliation, religion, sex (gender), sexual orientation, and public
assistance status.

REE is dedicated to strategic, administrative, advocacy, change
management, and employee developmental actions in line with the HC Plan,
that do not adversely affect or disproportionately impact any group of
employees or applicants.

APPENDIX C

IMPACTS ON WORKFORCE PLANNING

The four agencies (ARS, CSREES, ERS and NASS) that comprise REE are
responsible to the American people for a variety of programs and
services as outlined in their mission statements.

The many REE employees (permanent, temporary, seasonal, intermittent and
volunteer) and the numerous state and university cooperative employees
and other non-Federal associates make it possible for REE to carry out
its missions and programs. The breadth of our agencies' missions and
programs requires a diversity of skills. An extensive field structure
enables REE to provide services directly to our customers.

REE employs approximately 11,000 permanent employees in addition to a
large number of temporary, intermittent, and student employees.
Demographics of the REE workforce pose a significant challenge: the
average age of our employees is nearly 45 years; less than 10% of the
workforce is under 30 years of age. Over 40% of our workforce is
expected to retire in the next 10 years, and there are fewer skilled
workers entering the replacement pipeline. The average REE grade is GS-9
and as in most other government agencies, our most populous grades are

GS-9 through GS-12. However, expected retirements in this grade range
over the next decade, coupled with the anticipated smaller number of
applicants who qualify in disciplines needed by REE agencies suggests a
potential replacement shortfall. The HC Plan will aid in the development
of specific steps to ensure that highly skilled personnel will be
available in critical REE positions in the future.

REE in the past has followed the USDA direction in significant
streamlining and de-layering efforts in its workforce. These initiatives
have streamlined our program delivery and administrative structures.
However, limited budgets, effective technology use, and competitive
sourcing still impact our workforce and staffing levels. The HC Plan
will address these issues. The most distinguishing feature of our
workforce is its occupational diversity. REE employs individuals in over
150 different occupations. Our workforce is most concentrated in the
occupations which drive our mission: agricultural research, economics,
statistics and education.

**Technical Expertise In Scientific Disciplines** REE is the primary
scientific based mission area within USDA. REE includes the ARS which is
the principal in-house science research agency dedicated to solving
high-priority agricultural problems through research and information
access and dissemination. CSREES provides leadership to identify,
develop and manage Federal programs to support university-based and
other institutional research, education and

extension projects and programs. Through fair, efficient and effective
administration of Federal financial assistance, CSREES implements awards
and agreements of approximately \$1 billion annually. These funds help
train the next generation of food and agricultural scientists and
educators. The need for a workforce that is highly trained in the most
advanced and current agricultural and scientific knowledge is paramount
to fulfillment of our mission.

**Knowledge Of Economics and Statistics** In REE, ERS economists provide
economic analysis to develop and evaluate legislative, regulatory and
policy options and measure the success or failure of agriculture as it
relates to farmers, consumers and the general public. The knowledge of
agricultural commodities, credit principles, financial analysis,
production, marketing and trade issues is now and will remain vital to
the success of the mission.

NASS provides the basic agricultural and rural data needs for USDA and
for the citizens of the United States, both those working in agriculture
and those living in rural communities. By objectively providing timely,
accurate and usable statistical information and services, public
officials and private interests are able to make informed decisions.
NASS' statistics not only keep those involved with America's biggest
industry well-informed, but they also provide the basic information
necessary to keep agriculture markets stable and efficient, and help
maintain a level playing field for all users of agricultural statistics.

**Information Technology (IT) Skills** Investment and improvement in IT
systems are critical to accomplishing the missions of the REE agencies
as our employees and our customers increasingly rely upon computer
technology as a tool to efficiently and effectively perform their work.
Adopting new technologies and advancements using eGovernment and
eCommerce business processes change the way we perform our work and
conduct our business with the public.

EXTERNAL AND INTERNAL DRIVERS

The REE HC Plan supports our most important resource: PEOPLE (our
employees). Our current strategic planning efforts indicate a variety of
external and internal drivers that impact human capital planning. These
are:

External Drivers

Department-wide focus on the Administration=s Policy Report, AFood and
Agricultural Policy: Taking Stock for the New Century@

Federal laws and congressionally mandated actions including the
Government Performance and Results Act

Heightened national focus on Homeland Security

USDA Human Capital and Strategic Plans

Citizen and congressional interest focused on civil rights issues

Changing citizen expectations of the role of Government including more
collaboration and citizen involvement

Human Resources regulations and statutes including classification
systems, the competitive recruitment process, recruitment and retention
incentives, and other policies and regulations

Internal Drivers

A potential significant loss of leadership due to projected high rate of
Senior Executive Service (SES) and management employees eligible for
retirement and projected dearth of replacements

Implementation of major policy initiatives, such as the Farm Security
and Rural Investment Act of 2002 involving close coordination and tight
deadlines

Funding constraints and competing requirements within the human
resources area and REE as a whole, notably other facets of the
President=s Management Agenda (PMA), such as Competitive Sourcing

REE Strategic Plan and related policy initiatives

The potential for downsizing coupled with the need for new knowledge,
skills and abilities

Shift to an enterprise IT system and other automation to better support
the REE mission

These internal and external drivers help to reinforce the types of human
capital initiatives that must be in place to ensure that we have the
right number and skill mix of employees in our workforce. They will also
help to determine the impact of technology on the types of skills we
need and how our work can be performed more efficiently while continuing
to be more responsive to the customer.

CROSSCUTTING MISSION DRIVERS

It is clear that several crosscutting issues will drive the Department=s
and REE=s mission activities and delivery, and significantly impact
human capital management. These drivers are:

Scientific Research

The competitive future of the U. S. food and agriculture sector depends
on a continuing flow of scientific research and analysis. Discovery and
applied research in biotechnology and genomics lay the foundation for
meeting the challenges of global food security. Genetics and molecular
biology hold promise to reduce recurring problems of plant and animal
disease, invasive species,

post-harvest losses and food-related problems with human health.
Developing commercially feasible renewable resources, food-based health
products and manufacturing products, creates new demand for agricultural
products and helps reduce dependence on foreign sources. To meet these
challenges, REE must be prepared to educate, recruit and retain top
talent in these critical

scientific disciplines.

Global Markets

Globalization of markets and culture has enormous implications for the
food and agricultural system and those who work in it. We can no longer
think of U. S. agriculture as being confined to what occurs within our
nation's borders. It is critical that REE employees see this bigger
picture and understand how to structure and implement REE programs to
recognize the challenges and opportunities presented by the global
markets.

Homeland Security

The increased vulnerability of U. S. agriculture to accidental and
intentionally introduced animal and plant pests and pathogens has
required the establishment of a nationwide network of diagnostic
facilities to reinforce and supplement the Federal facilities of the
Animal and Plant

Health Inspection Service (APHIS). To meet this requirement, the USDA
through the joint efforts of CSREES and APHIS has established a unified
Federal-State network of public agricultural institutions to identify
and respond to high-risk biological pathogens in the food and
agriculture system. Funding provided by CSREES to universities will help
train some of the workforce needed to address this issue. The unique and
critical USDA role in helping protect against threats to farms, ranches
and the American food supply will affect how REE recruits, trains and
deploys its workforce.

Natural Resources

The management of our public and private natural resources must result
in long-term strategies that yield maximum sustainable benefits that
satisfy the breadth and variety of social concerns. A major goal of REE
is to provide scientific information to community-based forest and range
resources decision makers with policy alternatives for sustainable
resource management. In addition, the REE must expand the scientific
knowledge and technology base to enhance the productivity of our natural
resources. Specifically, the REE agencies perform the research,
education, extension, forecasting and economic analysis activities
needed to provide producers and their advisors with the management
practices and tools that will allow sustainable food, feed and fiber
production while protecting our soil, air and water resources.

Farm Security and Rural Investment Act Implementation

REE must have a capable and well-trained staff that can quickly perform
research, develop policy and programs, and implement and direct the
programs authorized in the Act. In addition the REE will need to
continue to improve service delivery requiring more collaboration and

information sharing among our agencies, and other USDA and Federal
agencies.

APPENDIX D

STRATEGIC PLANNING FRAMEWORK

The HC Plan was developed to institute policies and practices that will
ensure the REE Mission Area and its agencies will have a workforce
capable of carrying out its mission. Following are the mission, vision,
values, and strategic goals for REE.

MISSION: REE provides and supports the creation of the science-based
knowledge required by USDA and its customers. This includes providing
the sound scientific basis for informed decision making for all who
contribute to the U. S. food and agricultural system. The REE promotes
the well being of American agriculture, related industries, consumers,
and rural residents by:

A.  Creating basic research knowledge at the frontiers of biological,
    physical and social

    sciences,

    B. Applying knowledge in innovative ways to address problems and
    issues,

    C. Promoting commercial development and timely transfer of new
    knowledge and technologies to users,

    D. Educating and informing public and private decision makers, and

    E. Strengthening higher education to develop the skills of the
    evolving workforce.

    **VISION:** REE is recognized as the premier organization that
    provides the best available science and information to its customers
    to meet the needs of a rapidly evolving food and agriculture system.

    **VALUES:** USDA and REE values are based on the values articulated
    by President Bush to Federal employees on November 19, 2001. They
    are:

    We must always maintain the highest ethical standards. In addition
    to asking, AWhat is legal?@ we must also ask, AWhat is right?@.

    We must confront the tough problems, not avoid them. We are here to
    serve the public=s long-term interests, not just to apply quick,
    short-term fixes.

    We must remember that political and career employees are part of the
    same team. People do not separate them, and neither do I. We all
    have high expectations from our Government. To meet these
    expectations, we need to work together.

    We should always remember that every dollar we spend is the
    taxpayers money. People

    worked hard to earn it, we should spend it wisely and reluctantly.

    **REE STRATEGIC PLAN GOALS AND OBJECTIVES**

    Goal 1: Enhance Economic Opportunities For Agricultural Producers

    1.1. Provide information, knowledge and education to help expand
    markets and reduce trade barriers.

    1.2. Support international economic development and trade capacity
    building through research and technical assistance.

    1.3. Provide the science-based knowledge and technologies to
    generate new or improved high quality products and processes to
    expand markets for the agricultural sector.

    1.4. Provide science-based information, knowledge and education to
    facilitate risk management by farmers and ranchers.

    1.5. Contribute science-based information, analysis and education to
    promote the efficiency of agricultural production systems.

    Goal 2: Support Increased Economic Opportunities And Improved
    Quality Of Life In Rural America

    2.1. Expand economic opportunities in rural America by bringing
    scientific insights into economic and business decision making.

    2.2. Provide science-based technology, products and information to
    facilitate informed decisions affecting the quality of life in rural
    areas.

    Goal 3: Enhance Protection And Safety Of The Nation's Agriculture
    And Food Supply

    3.1. Reduce the incidence of food borne illnesses through
    science-based knowledge and education.

    3.2. Develop and deliver science-based information and technologies
    to reduce the number and severity of agricultural pest and disease
    outbreaks.

    Goal 4: Improve The Nation's Nutrition And Health

    4.1. Improve human health by better understanding the nutrient
    requirements of individuals and the nutritional value of foods.

    4.2. Promote healthier food choices and lifestyles.

    4.3. Enhance understanding of economic and social issues and
    outcomes leading to improved food program management and customer
    service.

    Goal 5: Protect And Enhance The Nation's Natural Resource Base And
    Environment

    5.1. Provide science-based knowledge and education to improve the
    management of forests and rangelands.

    5.2. Provide science-based knowledge and education to improve the
    management of soil, air and water resources to support production
    and enhance the environment.