# Presentation: 079133

## STRATEGIC MANAGEMENT OF HUMAN CAPITAL

**HUMAN CAPITAL **
**SCORECARD**

## President’s Management Agenda (PMA):  5 CROSSCUTTING GOVERNMENTWIDE INITIATIVES

**President’s Management Agenda (PMA):  ****5 CROSSCUTTING GOVERNMENTWIDE INITIATIVES**

**   ****P M A**
-    PERFORMANCE AND RESULTS

**Strategic **
**Management of **
**Human Capital**

- Improved
- Financial
- Performance

- Budget and
- Performance
- Integration

- Expanded
- E-Government

- Competitive
- Sourcing

**Notes:**
5 areas of concentration--slide 
Integrated, crosscutting
Reflect belief that today’s environment requires synthesis of :

People
Processes
Technology
(one can’t do it all)

I’ll start with the other 4 briefly

## A government that is:
Citizen, not bureaucracy, centered
Results, not process, oriented
Market-based, promoting innovation and competition

- A government that is:
- Citizen, not bureaucracy, centered
- Results, not process, oriented
- Market-based, promoting innovation and competition

**Notes:**
What’s really new?

President has MBA, business background coupled with public service
Blends best of both
3 themes—slide

## PRESIDENT’S MANAGEMENT SCORECARD

- USING MEASUREMENT
**TO FOCUS AND DRIVE CHANGE**
- Links the 5 areas of the PMA
- Red, yellow, green ratings
- Measures agencies progress and status quarterly
- Goal: Get results
- Holds agencies accountable for performance and results

**Notes:**
President’s approach—scorecard for Exec Branch agencies
Simple, but makes clear where everyone stands, gets attention
Quarterly rating on each of the 5 initiatives. Reflects both focus on results (Status) but also desire to encourage effort (Progress).  

Status—where you stand in relation to the final goal—Results.
ex. HC goal : close skill gaps in mission critical occupations. Gaps found and closed=Green
Don’t know what your MC occups are and/or whether you have gaps=Red. 
Know where gaps are, have closed some but not all=Yellow. 
Progress—how you are moving toward meeting goal.  E for effort.
Top level commitment, clear mission-related strategy, specific action plans with milestones and timelines and acting on them=Green progress 
Can be Red on status and Green on progress!  Long-term issues, tough to tackle. Agencies at different places.   Also remember—we should expect to see Reds because if these were easy to fix, wouldn’t have been identified as areas to look at.

No one should expect big jumps in one year! 

## 
“What gets measured, gets done.”    
				--Peter Drucker

“What you measure is what you get.”
			-- Jack Welch, former GE executive

*“**What gets measured, gets done.”    *
- 				--Peter Drucker
*“**What you measure is what you get.”*
*	**	**	**-- *Jack Welch, former GE executive

**Notes:**
How do you get change?  Many say focus, measure.  Gets attention.

## Leadership – driving change
Pending retirement rate
Greater expectation for accountability
Budget constraints

- Leadership – driving change
- Pending retirement rate
- Greater expectation for accountability
- Budget constraints

- Highly skilled diverse workforce
- Renewed interest in public service
- Government perceived as more stable than private sector
- Technology advances – electronic recruitment, systems integration -  better information

**Notes:**
Those of us who’ve been saying for years that “the sky is falling” are finally getting heard--everyone is now talking about HC—OMB, OPM, GAO, President, Congress, agency leaders.  That’s huge in itself.  
Luckily these driving forces for change are meeting up with other factors like renewed interest in public service, better technology, economic forces that make public service look more appealing 

## HUMAN CAPITAL PERFORMANCE: OPM’s ROLE

- OPM Director Kay Coles James -- President’s advisor on human capital matters
- OPM partnering with OMB on HC initiative
- OPM formed HC performance team – assist agencies directly (review, consult, guide, evaluate)

## Human Capital_____________________________

**A Transformation in the Strategic Employment, Deployment, and Development of the Federal Workforce.**

**Strategic **
**Management of **
**Human Capital**

## Human Capital 

**Human Capital **
**Standards for Success**

***Human Capital and ***
***Accountability ***
***Assessment***
*** ******Tool***

## 
Standard #1
Agency human capital strategy is aligned with mission, goals, and organizational objectives: 1) integrated into Budget and Strategic Plans; 2) consistent with OPM’s human capital scorecard (issued December 1, 2001) and 3) complies with standards for internal accountability systems to ensure effective merit-based HRM.
Standard #2
Agency has a citizen-centered, organizational structure that is delayered and oriented  toward performing the mission assigned to it. 
Standard #3
Agency 1) sustains high-performing workforce that is continually improving in productivity; 2) strategically uses existing personnel flexibilities, tools, and technology and 3) implements effective succession plans.
Standard #4
No skill gaps/deficiencies exist in mission critical occupations.
Standard #5
Agency differentiates between high and low performers through appropriate incentive and rewards.
Standard #6
Changes in agency workforce skill mix and organizational structure reflect increased emphasis on e-government and competitive sourcing.

**Human Capital Framework**

**Standard #1**
- Agency human capital strategy is aligned with mission, goals, and organizational objectives: 1) integrated into Budget and Strategic Plans; 2) consistent with OPM’s human capital scorecard (issued December 1, 2001) and 3) complies with standards for internal accountability systems to ensure effective merit-based HRM.
**Standard #2**
- Agency has a citizen-centered, organizational structure that is delayered and oriented  toward performing the mission assigned to it.
**Standard #3**
- Agency 1) sustains high-performing workforce that is continually improving in productivity; 2) strategically uses existing personnel flexibilities, tools, and technology and 3) implements effective succession plans.
**Standard #4**
- No skill gaps/deficiencies exist in mission critical occupations.
**Standard #5**
- Agency differentiates between high and low performers through appropriate incentive and rewards.
**Standard #6**
- Changes in agency workforce skill mix and organizational structure reflect increased emphasis on e-government and competitive sourcing.

**Human Capital **
**Standards for Success**

## Cornerstones

- Leadership

- Strategic Human Capital Alignment

- Talent
- Strategic Competencies

- Results-Oriented Performance Culture

- Critical Success Factors

- Leadership Planning and Implementation (SES),
-  Managers and Supervisors.
-  Integrity and Inspiring Employee Commitment

- Shared Vision
- Human Capital Focus
- Implementation by Managers
- Integrating the HR Function
- Workforce Deployment
- PMA Alignment

- Workforce Analysis
- Compete for Talent

- Performance Management
- Diversity and Relationships

- Learning and Knowledge Management

- Strategic Knowledge Management
- Continuous Learning and Improvement

## Human Capital Transformation Process :Key Dimensions 

**Accountability**

**Strategic Alignment**

- Performance Culture

- Talent

- Knowledge Management

- Leadership

**Notes:**
A more process oriented view—SA and Accountability as anchor pieces, start and end points in continuous loop. 

## 
“You got to be very careful if you don’t know where you’re going, because you might not get there.”

					-- Yogi Berra

*“**You got to be very careful if you don’t know where you’re going, because you might not get there.”*
*	**	**	**	**	**-- *Yogi Berra

**Or, more simply put.....**

## HUMAN CAPITAL DIMENSION:Strategic Alignment

**Develop a HC Strategy and Action Plan**
- Create a citizen-centered, delayered organization
- Conduct workforce analysis and planning
- Leverage e-Government, competitive sourcing
- Use personnel flexibilities and technology where they work best
- Integrate into budget and strategic plan
- Create a shared vision for the future with a human capital focus

**Notes:**
Includes look at people, (business) processes/structure.  Also includes how employees understand their role in achieving agency mission.

Some agencies have handed this off to HR—can’t do it!  Top level vision for agency is crucial, especially for this piece.  Requires managers across agency to talk, plan together.

Road map –and you’ve only been partway there.

## HUMAN CAPITAL DIMENSION:Talent

**Have quality people with competencies they need in most mission-critical activities**
- Develop HC strategies to identify and reduce skill gaps
- Develop staffing/retention strategies for employees with strategic competencies
- Use personnel flexibilities and learning strategies
- Assess quality of employees hired
- Integrate into budget request – make a business case
- Evaluate your success

## HUMAN CAPITAL DIMENSION:Performance Culture

**Diverse, results-focused, high performing workforce**
- Develop a mission-related employee performance mgmt system
**Plan** – set goals and measures
**Monitor**– measure performance & provide feedback
**Develop** – address poor performers, improve good performers
- Align - reward system to agency’s values – results
- Align cultural competencies and skills with mission
- Develop diversity goals and measures of success

**Notes:**
Does your current perf mgmt system focus on results? Is it aligned with agency mission and goals?  Do you effectively reward and motivate your stars and address poor performers?  
Good individual performance enhances organizational performance
Is your workforce diverse and does the culture embrace and make best use of differences? 

## HUMAN CAPITAL DIMENSION:Leadership

**Ensure continuity of effective leadership**
- Identify potential leaders from within
- Develop succession plans with specific objectives
- Encourage risk-taking
- Reward results-oriented efforts
- Maintain high standards of honesty and integrity
- Evaluate succession planning strategy
- Develop leadership development strategies consistent with mission
- Develop plans to meet recruitment/retention targets for high-performing executives, managers & leaders

**Notes:**
Remember concern with large retirement numbers among supvs.
Succession plan—how will you transition as leaders leave?  
Does your current workforce have the leadership skills/competencies you need now?  Will need in the future?  
How will you attract, develop and retain the leaders you need?
Main focus is on managers, but many agencies coming to see that every employee is a leader to some extent.  Broad goals like risk-taking, results-orientation and honesty apply to everyone.

## HUMAN CAPITAL DIMENSION:Learning & Knowledge Management

**Promote continuous learning environment and**
**knowledge management supported by appropriate investments in training and technology**
- Create a learning culture that supports employee development
- Conduct audit to determine and locate knowledge needed
- Collect best practices and lessons learned to share knowledge
- Encourage learning to promote transfer and use of knowledge
- Measure learning and knowledge transfer strategies

**Notes:**
What is the skill and knowledge level of your current workforce?  Will knowledge demands change in the future? Will your workforce be ready?   How will you prevent institutional knowledge from walking out the door? 
Do your employees share information effectively?  Does the agency encourage and support continuous learning to enhance current performance as well as future performance?   
Can be tough sell when budgets are tight.  
We want to continue to highlight how important learning and knowledge sharing are—a key element shared by high performing orgs.

## HUMAN CAPITAL DIMENSION:Accountability

**All agency managers accountable for effective HC management in support of mission consistent with merit system principles**
- Evaluate timeliness, accuracy and cost of HR services
- Leverage technology to enhance service delivery
- Participate in business integration strategies
- Determine HC implications of competitive sourcing,            e-government
- Acquire competencies to be an effective partner

## Everyone’s issues are different
No single model
Going through the process is half the battle

- Everyone’s issues are different
- No single model
- Going through the process is half the battle

## 

A tale of two agencies

- A tale of two agencies

## 
Got top level commitment quickly

Formed a team cutting across agency—levels, programs, political/career

Establishing agency-wide vision for the future

Focused on transforming HC because it will help them perform their mission better

Addressing strategic alignment first

Integrated approach to PMA agenda (E gov, Comp Sourcing, Fin Mgmt); taking each into account in HC planning/strategy

Proactive, positive and open communication with OPM/OMB

- Got top level commitment quickly
- Formed a team cutting across agency—levels, programs, political/career
- Establishing agency-wide vision for the future
- Focused on transforming HC because it will help them perform their mission better
- Addressing strategic alignment first
- Integrated approach to PMA agenda (E gov, Comp Sourcing, Fin Mgmt); taking each into account in HC planning/strategy
- Proactive, positive and open communication with OPM/OMB

- Assigned HC initiative to HR office
- No top managers outside HR office involved
- Viewing components/bureaus separately with a “here and now” focus
- Focused on getting a “green” score
- Scattered approach to dimensions
- Addressing each agenda item separately
- “Don’t call us, we’ll call you”; defensive; closed

## 

Developing a HC strategy designed to address both current and future issues

Comprehensive business process reengineering—What do we do? How? Why? Does our structure help or hinder?

Have workforce data and have figured out what it means

Assessing themselves objectively using the 5 key dimensions; formulating options to address weaknesses; implementing targeted solutions

Linking initiatives to specific challenges

- Developing a HC strategy designed to address both current and future issues
- Comprehensive business process reengineering—What do we do? How? Why? Does our structure help or hinder?
- Have workforce data and have figured out what it means
- Assessing themselves objectively using the 5 key dimensions; formulating options to address weaknesses; implementing targeted solutions
- Linking initiatives to specific challenges

- Addressing HR requirements today
- “We restructured in the 1990’s—we’re done”
- Have little workforce data and/or don’t know what it means
- Waiting for the GWS results
- Listing HR programs/initiatives without linkage to problems

## Working to develop documented accountability system

Focused on using available options strategically; demonstrating what does  and doesn’t work and making a business case for additional needs

Setting specific actions, timelines, goals and measures for success in implementing plan

Establishing a process for future evaluation, adjustment

Expect it to take a while

- Working to develop documented accountability system
- Focused on using available options strategically; demonstrating what does  and doesn’t work and making a business case for additional needs
- Setting specific actions, timelines, goals and measures for success in implementing plan
- Establishing a process for future evaluation, adjustment
- Expect it to take a while

- “Our HR is working fine”--No interest in developing accountability system
- Focused on list of desired legislative options and waiting for them to become law
- Goals, actions, dates, and results desired are vague or nonexistent
- Developing HC strategy is a one-time event
- Expect to get to green next week

## Management of people is management’s job
But – HR must be:
at the table
actively involved
providing data
offering tools
consulting
helping management identify and address issues

- Management of people is _management’s_ job
- But – HR _must_ be:
- at the table
- actively involved
- providing data
- offering tools
- consulting
- helping management identify and address issues

**Notes:**
If HR is driving the car alone—we won’t get there.  These are management issues and decisions in the end.  Strategic management of HC means management!
But if HR isn’t helping find the way, we also won’t get there.  Management needs your knowledge, expertise, data, ideas.  You have been the link between management and employees traditionally, and that must continue. 
But instead of just telling employees what management said—need to play a more active role in helping management make decisions.

## Human Resource experts  
Political appointees
Top level managers
Focus on present 
Reactive approach
Differentiation

- Human Resource experts
- Political appointees
- Top level managers
- Focus on present
- Reactive approach
- Differentiation

- Program experts
- Career employees
- Line staff
- Vision for the future
- Proactive approach
- Integration

**Notes:**
Understand that HC capital cross-cutting issue in every sense.  
Like yin/yang balance, agencies finding they must cut across traditional boundaries.  
Slide
Being reactive is more comfortable—and we can always say—they never called and asked me!  Even if it’s against your nature, need to become proactive—look for ways to get involved and don’t get discouraged if managers don’t embrace your involvement at first. 

Differentiation—one size doesn’t fit all. Recognize and address what is unique.
Integration—one size sometimes can fit all if differences aren’t too wide. Find similarities and capitalize  on them.