a

GAO

United States General Accounting Office

Ranking Member, Subcommittee on 

Oversight of Government Management, 

Restructuring, and the District of 

Columbia, Committee on Governmental 

Affairs, U.S. Senate

September 2001 HUMAN CAPITAL

Practices That 

Empowered and 

Involved Employees

GAO-01-1070

Page i GAO-01-1070 Human Capital

Contents

Letter 1

Results In Brief 2

Background 5

Scope And Methodology 8

Six Key Practices Helped Empower And Involve Employees 9

Agencies Addressed Barriers To Efforts That Empowered And 

Involved Employees 21

Agencies Cited Examples Of Performance Improvements 24

Conclusions 26

Agency Comments 27

Related GAO Products 29
Page ii GAO-01-1070 Human Capital
Page 1 GAO-01-1070 Human Capital

United States General Accounting Office

Washington, D.C. 20548

A

September 14, 2001 Letr

The Honorable George V. Voinovich

Ranking Member

Subcommittee on Oversight of Government

 Management, Restructuring, and the District of Columbia

Committee on Governmental Affairs

United States Senate

Dear Senator Voinovich:

People are the federal government’s most valuable asset in managing for 

results, and you have emphasized the importance of empowering and 

involving employees to help agencies achieve their goals and improve 

government operations. As our studies of private and public sector 

organizations have shown, high-performing organizations focus on valuing 

and investing in their employees--human capital--and on aligning their 

“people policies” to support organizational performance goals. However, 

strategic human capital management is a pervasive challenge in the federal 

government, and is one of the governmentwide areas that we have 

identified as high risk.1

In addition, the Administration’s emphasis on workforce planning and 

restructuring will require federal agencies to examine how they can flatten 

their organizational hierarchy and improve their work processes. The 

Office of Management and Budget’s May 8, 2001, bulletin called for 

agencies to use workforce planning to redistribute higher-level positions to 

front-line, service delivery positions that interact with citizens.2

 Effective 

workforce planning and restructuring efforts will build upon 

implementation of the Government Performance and Results Act of 1993 

(GPRA) to address results-oriented goals, improve performance, and 

assure accountability. To optimize the provision of services to citizens, it is 

crucial that employees understand the connection between their daily 

work activities and the results their organizations seek to achieve. 

1 High-Risk Series: An Update (GAO-01-263, Jan. 2001).

2 Office of Management and Budget, Bulletin No. 01-07, Workforce Planning and 

Restructuring, May 8, 2001.
Page 2 GAO-01-1070 Human Capital

At your request, this report examines selected experiences five agencies 

have had in implementing practices that helped empower or involve frontline employees. Our objectives were to (1) identify and provide examples 

of the key practices agencies used to empower and involve employees, 

(2) identify some of the barriers that these agencies experienced and 

strategies they used to address them, and (3) provide examples of reported 

performance improvements from empowering and involving employees. As 

agreed, we have examined selected employee empowerment and 

involvement practices at specific components within the Federal Aviation 

Administration (FAA), the Federal Emergency Management Agency 

(FEMA), the Internal Revenue Service (IRS), the Office of Personnel 

Management (OPM), and the Veteran’s Benefits Administration (VBA). The 

practices we examined at specific agency components were selected from 

those initiatives agency officials identified that had, in their view, 

successfully empowered and involved employees.

Results In Brief The organizations we reviewed used six key practices in the initiatives that 

we reviewed to empower and involve employees. Figure 1 identifies the 

practices and provides some examples of how the organizations used them.
Page 3 GAO-01-1070 Human Capital

Figure 1: Six Practices Used to Help Empower and Involve Employees

For the initiatives we reviewed, the agencies undertook changes that 

represented a significant shift from their traditional operations and, as 

such, encountered organizational and cultural barriers that needed to be 

overcome as they sought to empower and involve employees. These 

barriers included a lack of trust, resistance to change and lack of buy-in 

Demonstrating top leadership commitment. Top leadership commitment is crucial in

instilling a common vision across the organization and creating an environment that is

receptive to innovation. Leaders of the agency organizations we reviewed envisioned

needed changes, communicated openly with employees, and instituted organizational

changes. For example, the Director of the FAA Logistics Center decided that the Center

needed to operate more like a private sector business. He met in open forums with

employees to discuss his vision and, with the help of employees and union representatives,

reorganized the Center.

Engaging employee unions. Effective labor-management relations help to achieve

consensus and solve problems expeditiously. In some cases the unions participated in predecisional discussions with agency management before changes were implemented. For

example, IRS involved its employees’ union in pre-decisional discussions about proposed

new policies.

Training employees to enhance their knowledge, skills, and abilities. All five agencies

provided formal or on-the-job training to employees to support the changes that were being

made. For example, OPM provided on-the-job cross training to a retirement processing

team so that the team could adjudicate retirement claims under both the Civil Service

Retirement System (CSRS) and the Federal Employees’ Retirement System (FERS).

Using employee teams to help accomplish agency missions. All five agencies used

teams to help accomplish agency missions. Teams helped flatten organizations by merging

divisions and enhanced flexibility in meeting job demands. For example, VBA regional

offices created self-directed employee teams and merged divisions to process veterans’

benefits claims from beginning to end. Team members learned new skills and had more

flexibility to help each other accomplish tasks.

Involving employees in planning and sharing performance information. The agencies

involved employees to varying degrees in planning and shared performance information

with them. For example, one IRS division used an employee team to help develop its

strategic plan and shared performance information. One way that FAA's Logistics

center shared performance information was by posting performance data in charts, graphs, 

and tables throughout the building so employees could see the Center's progress toward

achieving organizational goals.

Delegating authorities to front-line employees. Employees at each of the agencies had

been delegated authorities. In some instances employees were formally authorized to

approve specified dollar levels of program assistance or procurements. For example,

FEMA’s public assistance coordinators were authorized to approve up to $100,000 in

financial assistance to citizens adversely affected by natural disasters or other

emergencies. In other instances, teams of employees were provided new authorities to

make decisions related to their work processes, workloads, training needs, and work

schedules.

•

•

•

•

•

•
Page 4 GAO-01-1070 Human Capital

from front-line employees and managers, and a variety of implementation 

issues, such as workload demands. The agencies developed strategies to 

address these barriers, such as maintaining open communication and 

reassigning and hiring personnel. Managers and employees adapted to the 

changes at their agencies over time, particularly once they perceived 

benefits, such as improved communication, from the new practices.

In implementing the practices to empower and involve employees, 

agencies identified a range of examples to demonstrate the performance 

improvements these efforts have accomplished. Performance 

improvements cited included increased efficiency and improved customer 

satisfaction. For example, operating as a team has allowed FAA’s Logistics 

Center to substantially reduce the time needed to make emergency radar 

repairs.

FAA, IRS, OPM, and VBA generally agreed with the contents of this report. 

FEMA did not comment on the report.
Page 5 GAO-01-1070 Human Capital

Background No management issue facing federal agencies could be more critical to 

their ability to serve the American people than their approach to strategic 

human capital management, including attracting, retaining, and motivating 

their employees. High-performing organizations in the private and public 

sectors have long understood the relationship between effective “people 

management” and organizational success. However, the federal 

government, which has often acted as if federal employees were costs to be 

cut rather than assets to be valued, has only recently received its wake-up 

call. As our January 2001 Performance and Accountability Series reports 

made clear, serious federal human capital shortfalls are now eroding the 

ability of many federal agencies—and threatening the ability of others—to 

economically, efficiently, and effectively perform their missions.3

 The 

problem lies not with federal employees themselves, but with the lack of 

effective leadership and management, along with the lack of a strategic 

approach to marshaling, managing, and maintaining the human capital 

needed for government to discharge its responsibilities and deliver on its 

promises.4

All five of the agencies we reviewed have experienced challenges in 

managing their human capital. Each has implemented management 

changes in response to the challenges they face, including implementing 

strategies to empower and involve employees.

FAA faces challenges, including the need to enhance communication and 

teamwork, and to provide employees with the training and skills they need 

to operate effectively. For example, we have reported on FAA’s 

implementation of management reforms, including delegating authorities 

to teams, to improve its rulemaking processes.5

 In our July 2001 report on 

aviation rulemaking we recommended, among other things, that the FAA 

Administrator take steps to (1) empower team members by giving them the 

authority to coordinate with the associate administrators (which would 

eliminate a separate review and approval step), (2) empower team 

3

 Performance and Accountability Series—Major Management Challenges and Program 

Risks: A Governmentwide Perspective (GAO-01-241, Jan. 2001). In addition, see the 

accompanying 21 reports, numbered GAO-01-242 through GAO-01-262 on specific agencies.

4

 Human Capital: Meeting the Governmentwide High-Risk Challenge (GAO-01-357T,

Feb. 1, 2001).

5 Aviation Rulemaking: Further Reform Is Needed to Address Long-Standing Problems

(GAO-01-821, July 9, 2001).
Page 6 GAO-01-1070 Human Capital

members by permitting them to set their own schedules and deadlines, and 

(3) hold staff and management accountable for ensuring that schedules are 

realistic.

At IRS we identified the challenges the organization faces in revamping its 

human capital policies to help achieve its congressionally mandated 

transformation to an agency that better balances service to the taxpayers 

with enforcement of the tax laws.6

 IRS has made major changes to 

modernize its organization and operations and comply with the IRS 

Restructuring and Reform Act of 1998.7

 These changes present major 

management challenges and will require considerable time to successfully 

implement them, and IRS managers and employees are still learning how to 

work effectively in the new environment. In revamping its performance 

management system, for example, we reported that IRS’ new system is 

weakest at the front line, where interactions with taxpayers occur.8

However, IRS officials told us that IRS is conducting customer satisfaction 

surveys to enhance its knowledge about what IRS employees can do to 

better meet taxpayers’ needs.

6 Human Capital: Taking Steps to Meet Current and Emerging Human Capital Challenges

(GAO-01-965T, July 17, 2001).

7

 P.L 105-206, July 22, 1998.

8 Follow-up to the May 8, 2001, Hearing Regarding the IRS Restructuring Act’s Goals and 

IRS Funding (GAO-01-903R, June 29, 2001), and IRS Modernization: Continued 

Improvement in Management Capability Needed to Support Long-Term Transformation

(GAO-01-700T, May 8, 2001).
Page 7 GAO-01-1070 Human Capital

VBA faces challenges in processing veterans’ benefit claims accurately and 

in a timely manner. In its fiscal year 2000 performance report, the Veterans 

Administration reported that performance declined with respect to its 

rating-related claims-processing timeliness and national accuracy rate. 

Among the reasons it cited for this decline was underestimating how long it 

would take to realize the impact of initiatives such as increased staffing and 

improved training.9

 We reported that many experienced claims-processing 

staff are expected to retire and that VBA’s training and recruitment 

programs may not be adequate to ensure a sufficient workforce of 

competent claims processors.10 VBA officials told us that, in response to 

the concern we raised that many of the training modules might not be 

available in time to train new employees, VBA has stepped up 

implementation of its plans to use a new Training and Performance Support 

System (TPSS).11 This system is intended to provide standardized training 

to new employees who will replace the wave of employees expected to 

retire during the next several years. According to VBA officials, they are 

currently using TPSS training modules to facilitate the training of some 

new employees, but the training modules needed for other newly hired 

employees will not be available until November 2001. In the interim, VBA is 

using a web-based “field guide” to train those employees. The field guide 

uses a variety of delivery mechanisms including satellite broadcasts, video 

teleconferencing and centralized and localized classroom instruction.

FEMA also faces special mission-related challenges, including providing 

timely responses to disaster aid requests, preventing or reducing harm and 

losses from future disasters through cost-effective mitigation efforts, and 

working effectively with other federal, state, and local programs. To 

address its strategic human capital management challenges, FEMA has 

started an initiative to reduce middle management layers and streamline its 

organization.12

9 Veterans Affairs: Status of Achieving Key Outcomes and Addressing Major Management 

Challenges (GAO-01-752, June 15, 2001).

10Major Management Challenges and Program Risks: Department of Veterans Affairs

(GAO-01-255, Jan. 2001).

11 Veterans’ Benefits: Training for Claims Processors Needs Evaluation (GAO-01-601, May 

31, 2001).

12 Federal Emergency Management Agency: Status of Achieving Key Outcomes and 

Addressing Major Management Challenges (GAO-01-832, July 9, 2001).
Page 8 GAO-01-1070 Human Capital

The fifth agency we report on—OPM—downsized significantly during the 

1990s. Among its many responsibilities, OPM receives tens of thousands of 

federal employee claims for retirement and insurance benefits each year. 

Although its processes have not changed significantly since the 1980s, OPM 

plans to modernize its retirement systems. This modernization is OPM’s 

central strategy to meet the long-term customer service and financial 

management objectives for CSRS and FERS. In its fiscal year 2002 

performance plan OPM reported that, beginning in fiscal year 2002, it will 

phase in a new business model for retirement claims processing.13

Scope And 

Methodology

To meet our objectives, we asked officials at five agencies to identify 

initiatives they had that empowered or involved employees. From the 

inventories of the initiatives they developed in response to our request, we 

asked agency officials to identify those agency components and initiatives 

that, in their view, had successfully involved and empowered employees. 

We sought to identify practices that were commonly implemented by the 

agencies within the past 5 years. In some cases, agencies focused our 

attention on practices that began earlier. 

We interviewed agency executives, managers, supervisors, front-line 

employees, and union representatives to discuss how agencies had 

implemented these practices to empower and involve employees, and we 

analyzed related documents and information they provided. We did not 

attempt to verify the performance data that agencies provided. 

We included FAA in our review because it has certain exemptions from the 

Federal Acquisition Regulations designed to facilitate delegating 

procurement authorities to lower levels. We included IRS and OPM in our 

review, given IRS’ exemption from certain title 5 personnel provisions and 

OPM’s human capital leadership role in the federal government. FEMA and 

VBA were selected because a literature review of relevant articles indicated 

that front-line employees from those agencies had been empowered or 

involved in key agency decisions or operations.

Because we were seeking to review initiatives that had successfully 

empowered and involved employees, we asked headquarters officials to 

identify organizational components for our review. Our FAA work was

13 Office of Personnel Management: Status of Achieving Key Outcomes and Addressing 

Major Management Challenges (GAO-01-884, July 9, 2001).
Page 9 GAO-01-1070 Human Capital

concentrated at the Mike Monroney Aeronautical Center in Oklahoma City, 

OK. Our FEMA work was done at the National Security Affairs Office, the 

Response and Recovery Directorate, and the Operations Support 

Directorate within FEMA headquarters in Washington, D.C., and at FEMA’s 

U.S. Fire Administration in Emmitsburg, MD. Our work at IRS was done at 

the Wage and Investment Division in IRS’ headquarters in Washington, D.C., 

and at the Accounts Management, Submissions Processing, and 

Compliance branches at the Ogden, UT, Service Center. Our OPM work 

was conducted at its Retirement and Insurance Service locations in 

Washington, D.C., and Boyers, PA. Our VBA work was conducted at VBA’s 

regional offices in Los Angeles, CA; Muskogee, OK; and Phoenix, AZ. Our 

selection process was not designed to provide examples that could be 

considered representative of all the employee empowerment and 

involvement initiatives at the agencies reviewed or the federal government 

in general.

We conducted our work from October 2000 through August 2001 in 

accordance with generally accepted government auditing standards. 

Six Key Practices 

Helped Empower And 

Involve Employees

The five agencies we reviewed implemented key empowerment and 

involvement practices as part of making organizational changes intended to 

realign organizations and processes to improve performance. The 

practices were (1) demonstrating top leadership commitment; (2) engaging 

employee unions in making changes; (3) training employees to enhance 

their knowledge, skills, and abilities; (4) using employee teams to help 

accomplish agency missions; (5) involving employees in planning, and 

sharing performance information; and (6) delegating authorities to frontline employees.
Page 10 GAO-01-1070 Human Capital

Demonstrating Top 

Leadership Commitment

Top leadership commitment is crucial in developing a vision, initiating 

organizational change, maintaining open communications, and creating an 

environment that is receptive to innovation. In earlier reports and 

testimonies, we observed that top leadership must play a critical role in 

creating and sustaining high-performing organizations. Without the clear 

and demonstrated commitment of agency top leadership, organizational 

cultures will not be transformed, and new visions and ways of doing 

business will not take root.14

Consistent attention to employee empowerment and involvement issues 

helps to ensure that changes are sustained. Agency leaders need to commit 

their organizations to valuing and investing in their employees by 

empowering, involving, and providing them the tools to do their best, and 

by implementing the modern performance management and incentives 

systems needed to focus employees’ efforts on achieving agency missions 

and goals. Top leadership commitment entails time, energy, and 

persistence in providing incentives and establishing accountability. Agency 

leaders must commit their organizations to valuing and investing in their 

employees and focusing their employees’ efforts on achieving stated 

agency missions and goals.15 While top leadership commitment can be 

demonstrated in many ways, the following are examples employees and 

managers identified for the selected initiatives we reviewed at these 

agencies.

• Think strategically about areas where innovation would make 

good business sense. Leaders conceptualized new approaches to 

improve performance and engaged employees and managers in shaping 

the implementation of that vision. For example, the Director at FAA’s 

Logistics Center saw the need for operating more like a private sector 

business and envisioned the organizational and operational changes that 

would be required to do that. The Logistics Center’s Director helped to 

ensure that all employees shared his vision by discussing proposed 

changes with his top-level managers and by meeting with front-line 

14 Managing for Results: Federal Managers’ Views Show Need for Ensuring Top 

Leadership Skills (GAO-01-127, Oct. 20, 2000); Management Reform: Using the Results Act 

and Quality Management to Improve Federal Performance (GAO/T-GGD-99-151, July 29, 

1999); and Management Reform: Elements of Successful Improvement Initiatives (GAO/TGGD-00-26, Oct. 15, 1999).

15 GAO-01-965T.
Page 11 GAO-01-1070 Human Capital

employees and union representatives to obtain their input about 

potential changes.

• Reorganize and integrate operations. Leaders implemented their 

visions by realigning their organizations to improve performance and 

increase the coordination of mission-related activities. For example, a 

Branch Chief in OPM’s Retirement and Insurance Service enabled a new 

team to improve claims processing by, among other things, providing 

cross-training for the team to handle both CSRS and FERS claims.

• Create an environment of trust and honest communication. 

Leaders made themselves available to employees and unions, promoted 

open and constructive dialog, and were receptive to ideas and 

suggestions from employees at all levels. Following an approach to 

change management that is transparent and highly participatory is a key 

element in involving and empowering employees. For example, several 

of the agencies held town-hall meetings with employees to discuss 

workplace issues and provide a forum for input and feedback. IRS 

employees said that they felt that management used the information 

they provided about proposed changes.

• Target investments and provide incentives to facilitate change. 

Leaders provided funding and created financial and other incentives to 

support new ways of working and to encourage employees to attain the 

agencies’ goals and objectives. For example, the FAA Logistics Center 

Director committed to providing every Logistics Center employee with a 

$500 cash award if the Center met all of its performance targets for 

fiscal year 2001. At the time of our review, the Logistics Center was on 

track to meet or exceed its goals.

• Participate in efforts to benchmark successful organizations. 

Some leaders visited organizations that were models for enhancing 

organizational flexibility and maintaining quality standards. By visiting 

and benchmarking model performance practices, leaders demonstrated 

to employees their personal commitment to making the changes needed 

for their offices or units to become high-performing organizations.16 For 

example, the Director of one VBA regional office visited several private 

sector organizations to observe how they processed claims and ensured 

accuracy. The insights gained were factored into the changes made in 

regional office claims operations.

16 Benchmarking is a critical part of an effective improvement program because it helps an 

organization identify outstanding levels of performance that have actually been achieved. 

Benchmarking therefore helps define specific reference points for setting goals for 

improving performance. See Managing for Results: Critical Actions for Measuring 

Performance (GAO/T-GGD/AIMD-95-187, June 20, 1995).
Page 12 GAO-01-1070 Human Capital

• Use a 360-degree performance feedback system. One leader used 

input from team members to improve the team’s performance. An OPM 

Branch Chief who supervises the cross-trained claims processing team 

implemented a 360-degree feedback system for assessing both her and 

her team members’ performance. Under that system, team members 

provide her with input on her performance as a team coach as well as 

input on the performance of other team members. She then uses that 

information for self-assessment and in providing performance feedback 

to individual team members.

Engaging Employee Unions Involving employee unions, as well as involving employees directly, is 

crucial to achieving success. Major changes can involve redesigning work 

processes, changing work rules, developing new job descriptions, 

establishing new work hours, or making other changes to the work 

environment that are of particular concern to employees’ unions. 

Obtaining union cooperation and support through effective labormanagement relations can help achieve consensus on the planned changes, 

avoid misunderstandings, and more expeditiously resolve problems that 

occur. The following are examples of how agencies engaged employee 

unions.

• Develop and maintain an ongoing working relationship with 

unions. Agencies worked cooperatively with employee unions and 

found that an ongoing relationship enhanced communication. For 

example, OPM maintained a continuous dialog through weekly meetings 

of management and union representatives to share information and 

address workplace issues. Officials at OPM’s Retirement Operations 

Center at Boyers, PA, and the American Federation of Government 

Employees (AFGE) said that their excellent working relationship helped 

facilitate the adjustments made to incorporate new technology at the 

Center. They said when new technology reduced the Center’s need for 

file clerks, union and management officials worked together to ensure 

that affected employees received advance notice about upcoming 

changes, training in new skills, and information about available job 

opportunities.

• Document formal agreements. Agencies had formal agreements to 

serve as a foundation setting forth the manner in which labor and 

management would work together. For example, the agreement 

between IRS and the National Treasury Employees Union (NTEU) was 

designed to ensure that employees are adequately represented and 

informed of proposed new policies and have input into the proposals. 
Page 13 GAO-01-1070 Human Capital

The agreement also provides for continuous improvement in IRS 

operations in part by providing employees the authority, resources, and 

other inputs they need to effect changes and to be accountable for 

performing effectively, and provides for NTEU participation in various 

forums, such as business process improvement teams and cross-unit 

committees.

• Build trust over time. Some agencies have undertaken a long-term 

effort to create an environment of trust and openness in working 

cooperatively with unions. For example, both IRS and NTEU officials 

credited the excellent working relationship they developed over the last 

decade for helping to reorganize IRS. Officials at IRS stated that the 

reorganization has resulted in operating divisions that are focused on 

serving taxpayers and flatter decision-making structures with clear endto-end accountability. The NTEU President said that the union was 

willing to expedite some negotiations on mission-critical issues because 

a trusting relationship had developed and IRS employees felt that 

management used the information they provided in shaping the new 

IRS.

• Participate jointly in making decisions. Agencies involved unions 

and incorporated their input into proposals before finalizing decisions. 

For example, several unions provided suggestions about how agencies 

should share performance information with employees. In another 

instance, OPM’s Operations Center and AFGE worked jointly on predecisional matters, such as the hiring of a new director of the 

Operations Center.

Training Employees to 

Enhance Their Knowledge, 

Skills, and Abilities

Both employees and managers viewed training as a critical factor in 

learning how to work in new and different ways. To improve customer 

service, employees may need new skills, such as the ability to analyze and 

improve work processes or the ability to work effectively together on 

teams. In addition to job-specific skills and work processes, training in 

teamwork and communications and encouragement and coaching through 

mentoring and networking can help employees adapt to new ways of 

working that involve changes in their roles and job expectations. VBA 

officials, for instance, told us that, along with providing various training 

modules, employees also need on-the-job training, coaching and mentoring 

to enhance their expertise through actual experience in processing claims. 

The following are examples of how agencies trained employees in new 

processes.
Page 14 GAO-01-1070 Human Capital

• Provide a mix of on-the-job and formal training. Agencies used a 

variety of training techniques to help employees adjust to organizational 

and operational changes. For example, OPM provided on-the-job cross 

training so that a claims processing team could adjudicate both CSRS 

and FERS claims. According to the Branch Chief, because the team 

received cross-training, it was able to help another division reduce its 

backlog of FERS cases. OPM also provided formal training to teams in 

how to make decisions in setting goals, planning and assigning work, 

and scheduling overtime and training.

• Provide training on building team relationships and new ways of 

working. When making significant changes to their operations, 

agencies provided training to help facilitate change. For example, when 

IRS undertook a major reorganization, its Ogden, UT, Service Center 

trained its employees in the new ways of conducting business. The 

training workshops included (1) learning how effective teams function;

(2) improving working relationships among peers, managers and 

employees, and managers and union stewards; (3) enhancing effective 

communications among employees, union stewards, and managers; 

(4) increasing discussions about ways to improve work processes and 

meet customers’ needs; and (5) creating a more positive workplace 

environment. The employees we interviewed said that training on 

effective working relationships was especially beneficial because they 

got to know their co-workers and gained an appreciation for each 

others’ views.

• Commit sufficient funding and time to training. Agencies 

considered training needs in budget decisions and their workforce 

planning. For example, as FAA’s Logistics Center was being reorganized 

to operate in a more businesslike manner, it trained employees about 

the need for, as well as on how to develop, quality work processes. This 

enabled employees to document information that was required for the 

Logistics Center to receive International Organization for 

Standardization (ISO) 9000 certification for quality work processes.17 To 

receive this certification, an organization must show that it has 

standardized, high-quality processes that result in products and services 

that are provided in a timely manner.

17ISO is a worldwide federation of national standards bodies representing 140 countries. 

ISO 9000 certification recognizes standardized quality processes established by 

organizations to produce consistently high-quality products or services.
Page 15 GAO-01-1070 Human Capital

Using Employee Teams To 

Help Accomplish Agency 

Missions

Adopting a teams-based approach to operations can improve employee 

morale and job satisfaction by creating an environment characterized by 

open communication, enhanced flexibility in meeting job demands, and a 

sense of shared responsibility for accomplishing agency goals and 

objectives. Using teams can also assist in integrating different 

perspectives, flattening organizational structure, and streamlining 

operations. In a prior GAO report on best practices, we said that 

commercial firms began using integrated product teams in the 1980s as a 

way to get better results faster.18 An integrated product team is a 

concentration of product expertise within a team of employees who, 

together, have the authority to design, develop, test, manufacture, and 

deliver a product. In examining FAA’s efforts to modernize its air traffic 

control systems, we stated that although FAA has identified an integrated 

team approach as key to the agency’s efforts to deploy systems that meet 

performance goals, major offices still tended to function in stovepipes that 

inhibit an integrated team approach.19

The following are examples of how teams were used in the agency 

initiatives we reviewed.

• Create teams of employees who represent multiple 

organizational functions and different grade levels. Agencies 

flattened their organizational structures by including employees from 

various organizational functions and grade levels on teams. For 

example, VBA consolidated regional office operations by merging two 

divisions and creating teams with members from both functions who 

could process claims from beginning to end. In some cases, forming 

teams provided opportunities for front-line employees to assume 

leadership roles. FEMA’s teams at the U.S. Fire Administration provided 

opportunities for front-line employees to lead teams whose members 

included a mix of employees and supervisors. Agencies also took steps 

to streamline their processes by using a team approach. For example, 

VBA streamlined its claims process by allowing one employee to handle 

all aspects of a claim, instead of requiring employees to write referrals 

and wait for responses from other divisions. VBA’s team approach also 

18 Best Practices: DOD Teaming Practices Not Achieving Potential Results (GAO-01-510, 

Apr. 10, 2001).

19 Air Traffic Control: Role of FAA’s Modernization Program in Reducing Delays and 

Congestion (GAO-01-725T, May 10, 2001).
Page 16 GAO-01-1070 Human Capital

enhanced accountability to veterans because team members were 

responsible for handling specific claims.

• Establish an integrated working environment with common 

goals. When agencies established teams, this provided an environment 

in which individual team members were encouraged to work together 

toward achieving team goals. For example, FEMA’s U.S. Fire 

Administration teams had members from units throughout the 

organization. The teams met on a weekly basis and identified ways to 

implement over 170 Board of Visitors recommendations for improving 

the Fire Administration’s operations. These teams facilitated 

communications and employee involvement by maintaining a focal 

point for the organization, working toward consensus, and posting 

performance data showing progress toward addressing these 

recommendations.

• Assign team responsibilities and provide an environment for 

learning. Agencies assigned a broad range of responsibilities to teams 

and allowed members to help each other and learn new skills. For 

example, VBA’s claims-processing teams were responsible for 

controlling claims from when first received until finally adjudicated. 

That required the team to conduct a full range of claims functions, 

including receiving and controlling the claims, contacting veterans and 

hospitals to obtain information, and making benefit decisions. Team 

members were able to assist other team members when needed, which 

helped develop team members’ skills in functions they did not 

previously perform. To enable the team to efficiently meet their 

objectives, the teams were also responsible for setting their work 

schedules and managing their workload.

• Hold teams accountable for results. The agencies held teams 

accountable for accomplishing their work, and working together in a 

team environment encouraged team members to share accountability. 

When teams made decisions about how to do their work, employees told 

us they felt greater accountability for the teams’ overall performance. 

For example, members of the FAA Logistics Center’s integrated product 

teams were accountable for all aspects of the Center’s products, 

including maintenance, repair, storage, and shipping. The teams’

performance was measured on a regular basis, providing direct 

feedback to the teams.
Page 17 GAO-01-1070 Human Capital

• Physically collocate team members when appropriate. Agencies 

collocated team members when the employees had been working in the 

same building or facility. Although technology is being used to help 

bring teams that are geographically dispersed together in a virtual 

environment, to the extent that team members are already located 

nearby, moving team members to a shared location improved 

communication and enhanced efficiency.20 For example, collocating 

OPM’s retirement team members facilitated the sharing of information 

among members and led to improved work processes and customer 

satisfaction.

Involving Employees in 

Planning and Sharing 

Performance Information

Involving employees in planning and sharing performance information can 

help employees understand what the organization is trying to accomplish 

and how it is progressing in that direction. Involving employees in the 

planning process helps to develop agency goals and objectives that 

incorporate insights about operations from a front-line perspective, as well 

as increases employees’ understanding and acceptance of organizational 

goals and objectives. Involving front-line employees in the goal-setting 

process also helps create a clear “line of sight” throughout the organization 

so that everyone understands what the organization is trying to achieve and 

the goals it seeks to reach. Employees we met with appeared committed to 

working toward the goals of their agencies and to providing high quality 

service.

20 Advances in the use of information technology and the Internet are continuing to change 

the way federal agencies communicate, use, and disseminate information, deliver services, 

and conduct business. See Electronic Government: Challenges Must Be Addressed With 

Effective Leadership and Management (GAO-01-959T, July 11, 2001).
Page 18 GAO-01-1070 Human Capital

Sharing performance information can provide employees with a more 

meaningful perspective about how their day-to-day activities contribute 

toward the organization’s goals and objectives. Sharing performance 

information also allows supervisors to provide clearer and more specific 

feedback to teams and front-line employees on their expectations, 

progress, and performance. Agencies’ use of performance information can 

be improved. In May 2001, we reported that, based on a survey of federal 

managers at 28 agencies, at no more than 7 of the 28 agencies surveyed did 

50 percent or more of the managers respond that they used performance 

information to a great or very great extent.21 However, at the agencies we 

visited, managers used performance information and shared this 

information with front-line employees through various mechanisms. Some 

of these agencies, such as VBA and IRS, used a balanced scorecard 

approach, which is intended to provide a balanced perspective regarding 

agency results, customer satisfaction, and employee feedback. At one of 

VBA’s regional offices, for example, computerized information is 

continuously displayed on video screens providing employees with current 

performance information.

The employees we met with were aware of their agencies’ and their units’

performance goals and objectives, and they said that sharing performance 

information had enhanced communications across all levels of the 

organization. Employees told us that sharing performance information 

provided everyone with a focus to work toward and a status report on their 

progress. They also said that sharing performance information generated 

more performance-related discussions, including at town-hall meetings, 

other meetings with managers, and during team meetings. 

The following are examples of how agencies involved employees in 

planning and sharing performance information.

• Create mechanisms to involve employees in the planning process. 

Agencies used various mechanisms to develop strategic plans, gather 

feedback from internal stakeholders for identifying gaps in existing 

strategic plans, and obtain employee input and feedback. For example, 

one IRS division used an employee team to help to develop its strategic 

plan. The team ensured that all division employees had opportunities to 

21 Managing for Results: Federal Managers’ Views on Key Management Issues Vary Widely 

Across Agencies (GAO-01-592, May 25, 2001).
Page 19 GAO-01-1070 Human Capital

provide input, and the agency used that input as part of its efforts to 

develop a balanced set of goals and objectives for the division. 

• Post performance information throughout the workplace. 

Agencies shared performance information with employees by posting it 

through a variety of means, including charts, graphs, newsletters, and 

agency intranet postings. For example, FAA’s Logistics Center posted 

performance charts and graphs in the entry foyers of its buildings and at 

the entrances to its organizational units. Such postings permitted 

employees to easily see how their units’ performance was contributing 

to agency goals and objectives. The Logistics Center also had a monthly 

newsletter for sharing organizational performance information and 

providing an arena for employees to share information.

• Share performance information in meetings. Agencies frequently 

held town-hall and other meetings to discuss program performance and 

organizational issues. Agencies used town-hall meetings to help 

employees better understand how their work efforts contributed to 

overall organizational success. The town-hall meetings also provided a 

forum in which employees and managers could discuss organizational 

changes and suggest operational improvements. For example, IRS’

Ogden, UT, Service Center employees we interviewed said that for the 

first time regular and effective communications between Center 

managers and employees was occurring. They said that, in addition to 

listening, managers were taking action on employees’ suggestions, 

which made the employees see that their input was valued. Frequent 

team meetings provided employees an opportunity to obtain feedback 

about agency performance. For example, VBA teams shared 

performance information at weekly meetings, information that helped 

the teams assess their progress in meeting performance goals.

• Survey employees on their views regarding organizational 

direction. Agencies used surveys to obtain employees’ views, such as 

input regarding the direction of organizational changes. IRS’ Wage and 

Investment Operating Division surveyed employees on the strengths, 

opportunities, and priorities for each of the division’s branches, shared 

survey results with employees, and implemented changes as a result.

Delegating Authorities to 

Front-line Employees

Delegating authorities to front-line employees involves the transfer of 

authorities from managers to those employees who are closer to citizens 

and provide services and information as part of their day-to-day activities. 

Providing delegated authorities can enable employees to control their own 

work processes and schedules. Delegating authorities also gives 

employees the opportunity to look at customer needs in an integrated way 
Page 20 GAO-01-1070 Human Capital

and effectively respond to those needs. Delegating authorities can benefit 

agency operations by streamlining processes. Furthermore, delegating 

authorities to front-line employees gives managers greater opportunities to 

concentrate on problems or policy-level issues. If employees believe they 

have the authority to tackle goals and objectives beyond their formal job 

descriptions and assigned units, then when customers have legitimate 

complaints, empowered front-line employees can “make it right”

immediately rather than having to wait for management to get involved.

The following are examples of how agencies delegated authorities to frontline employees.

• Empower on-site staff with authority to make decisions. Agencies 

delegated authorities and empowered front-line employees to exercise 

responsibilities to more fully address customer needs. For example, 

FEMA public assistance coordinators are on-site at the disaster or 

emergency to observe the conditions and to coordinate public 

assistance. They were delegated the authority to determine applicants’

eligibility, to approve up to $100,000 in public financial assistance, and 

to help to ensure that applicants are kept fully informed throughout the 

public assistance process. 

• Eliminate layers of review. Agencies reduced the number of 

approvals needed for various activities and delegated greater authority 

to front-line employees to make decisions. For example, FAA’s 

Aeronautical Center delegated authorities to its audiovisual teams to 

make decisions while on location, such as the need to visit locations in 

addition to those originally planned and approved. This allowed the 

audiovisual teams to more efficiently meet customer needs. At FEMA, 

delegating authority to the Public Assistance Coordinators eliminated 

two additional state reviews of applications for assistance and two other 

reviews by FEMA.

• Provide more time for managers to focus on problem areas or 

policy matters. Agencies targeted managers’ skills on more difficult 

problems or policy areas by delegating some authorities to front-line 

employees. For example, VBA managers said they were able to use their 

time more efficiently after delegating day-to-day claims-processing 

authorities to the teams. They said that by delegating these authorities, 

they could concentrate on policy matters and more difficult problems 

that the teams were unable to handle.

• Establish a new position with appropriate authority. Some 

agencies identified situations in which new positions of authority could 

help benefit operations. For example, VBA, as part of its efforts to 
Page 21 GAO-01-1070 Human Capital

reengineer its claims processing, established a new decision review 

officer position and provided employees in those positions the authority 

to review and change claims decisions that veterans appealed. Prior to 

this, veterans’ appeals were addressed under a formal hearing process. 

Because decision review officers have more flexibility to address 

appeals informally, creating this new position provided the opportunity 

to streamline the process and save time.

Agencies Addressed 

Barriers To Efforts 

That Empowered And 

Involved Employees

The agencies we reviewed undertook changes that represented a 

significant shift from their traditional operations and, as such, encountered 

organizational and cultural barriers that needed to be overcome as they 

sought to empower and involve employees. Some of the barriers included 

a lack of trust, resistance to change and a lack of buy-in, and 

implementation issues. Despite encountering these barriers, the 

employees and managers we met at each of the five agencies perceived 

benefits from the employee empowerment and involvement practices that 

their agencies had implemented. To address the barriers, the agencies used 

such strategies as open communication, a commitment to change, and 

providing performance feedback. 

All of these efforts entailed cultural transformations, and therefore there 

was some natural resistance that took time and effort to overcome. 

Nevertheless, the experiences of these agencies demonstrate that 

organizations can make progress in addressing barriers to empower and 

involve their employees. The following are some examples of the barriers 

encountered and the strategies used to address them.

Lack of Trust The agencies identified a lack of trust as a barrier they experienced in their 

efforts to empower and involve employees. A lack of trust can frustrate 

agency attempts to implement major changes in employees’ day-to-day 

working environment. Throughout our review, managers, unions, and 

employees continuously emphasized the importance of trust in gaining 

acceptance for changes. For example, some employees feared for their job 

security as FAA’s Logistics Center began to implement more business like 

operations. However, they told us that they learned to trust the Logistics 

Center’s Director as they recognized the need for the changes. 

Some employees were skeptical that managers would listen to their input 

for planning purposes. They were also concerned that performance data 
Page 22 GAO-01-1070 Human Capital

would be used to justify punitive actions, rather than to increase 

employees’ understanding about the direction of the agency’s performance. 

In addition, working in a more open environment requires employees to 

trust and help each other, which some employees said initially was a 

barrier to working as a team. Maintaining an open door policy that 

encouraged employees to share their views and demonstrating a vision and 

commitment to change were two approaches that agencies used to develop 

trust. 

Resistance to Change and 

Lack of Buy-in 

Another barrier that agencies experienced was resistance to change and a 

lack of buy-in. Employees and managers resisted making changes because 

they had to work in new and unfamiliar ways. Some employees found it 

difficult to transition from working under direct supervision to working on 

a team with little direct supervision. For example, according to FEMA 

officials, some team members continued to seek leadership and guidance 

from management, did not trust other team members, and were reluctant to 

speak out in the team environment until they eventually adjusted to 

working in a team environment.

According to officials from the five agencies, some managers found it 

difficult to operate in a new environment of more open communication and 

feedback. Some FEMA managers and supervisors were reluctant to allow 

employees to have delegated authorities in areas such as budgeting, 

procurement, and time and attendance report approval. At FAA’s 

Aeronautical Center, some employees with contracting responsibilities 

were initially uncomfortable exercising newly delegated procurement 

authority to purchase goods or services up to a certain dollar amount 

without supervisory approval. The employees said that they gained 

confidence as they became more experienced in exercising the new 

authority, and some of the employees and managers who initially resisted 

changes adjusted to them gradually over time. In some cases, the offices we 

visited made managerial and supervisory changes when individuals were 

unable to adjust to a more open work environment. 

A lack of buy-in resulted in some employees and managers being reluctant 

to fully participate in training. They tended to view the changes being 

made as another “flavor-of-the-month” initiative. Thus, they were not as 

open to receiving new information or adopting new ways of working. IRS 

provided an example of a solution to this barrier. To encourage managers 

to buy into team concept training, IRS has decided to train section chiefs 

who will then train employees in their work units.
Page 23 GAO-01-1070 Human Capital

Implementation Issues Implementation issues, such as workload demands and performance 

incentive issues, also presented barriers to change. Although employees 

generally appreciated the changes made to work in a team environment, 

high workload demands affected some team members’ ability to exercise 

their delegated authority. VBA, for example, has a large, and growing, 

backlog of compensation and pension claims. 22 Although team members 

had the authority to set their schedules and determine their day-to-day 

work priorities, heavy workload demands prevented them from being able 

to plan and manage their work. Some of VBA’s decision review officers 

also told us that their ability to exercise their delegated authorities had 

been limited by the claims-processing backlogs.

Another implementation issue that affected teams involved the incentives 

that agencies provided to teams to encourage performance. For example, 

some employees said that working on teams was demotivating when poor 

performers obtained an equal share of team rewards. Some employees and 

managers said that not enough money was available for rewarding 

employees and teams that met their goals and objectives. Such issues were 

commonly addressed in team meetings and in individual performance 

feedback.

The timing of training was another implementation issue that agencies 

cited as a barrier. For example, some team members told us that it would 

have been helpful if they had received training before being reorganized 

into teams, rather than after. Because training was not provided prior to 

moving to a team environment, the teams were immediately faced with the 

need for team members to take time off of the front lines for training and 

skill building. Providing training at the appropriate time for an employee 

can achieve better results. 

22 The accurate and timely processing of compensation and pension claims is one of the 

major management challenges we have identified at the Department of Veterans Affairs. 

See Major Management Challenges and Program Risks: Department of Veterans Affairs

(GAO-01-255, Jan. 2001).
Page 24 GAO-01-1070 Human Capital

Agencies Cited 

Examples Of 

Performance 

Improvements

Agencies identified a range of examples to demonstrate the different ways 

performance can be improved in implementing the practices to empower 

and involve employees. As we have reported before when looking at 

management reform efforts, it is difficult to disentangle the effects of 

numerous initiatives and external factors that affect each agency’s 

environment.23 For example, external factors such as legislative changes 

that resulted in reopening nearly 100,000 veterans’ claims and the 

increasing complexity of these claims have affected VBA’s results in 

addressing its claims backlog. 

Officials from the five agencies attributed improved operations to the 

employee empowerment and involvement initiatives they had 

implemented, and the specific offices we visited had achieved successes in 

implementing the practices we reviewed in this report. Therefore, these 

examples are presented to illustrate how performance can improve 

through the contributions of empowered and involved employees.

• FAA’s Logistics Center Radar Product Division team addressed 

emergencies, as well as routine tasks, more quickly. Established in 

1998, this Division is an integrated product team of experts such as 

engineers and electronic technicians, who perform all of the functions 

required to repair ground-based radar systems. In April 2000, the airport 

surveillance radar at Boston’s Logan Airport was ripped from its 

mounting pedestal during severe weather conditions, severely reducing 

the number of flights in and out of Logan Airport. Working together, the 

team, along with other FAA and non-FAA organizations, made extensive 

repairs and restored radar service within 58 hours after the incident. In 

December 2000, a similar problem occurred at New York’s JFK airport, 

and the team restored service within 56 hours. 

According to Logistics Center officials, prior to working as an integrated 

product team, it required longer for FAA to coordinate a response to 

similar emergencies and fully restore service. FAA said that collocating 

all of the logistics functions including Engineers, Items Managers, 

Technicians, Equipment Specialists, etc, allowed the team to work 

together on priority areas. Collocation also eliminated communication 

barriers, such as the need to write memos or leave voice mail messages 

23 NPR’s Savings: Claimed Agency Savings Cannot All Be Attributed to NPR (GAO/GGD99-120, July 23, 1999).
Page 25 GAO-01-1070 Human Capital

to request services and wait for responses. Forming the team also 

allowed FAA to reduce overlapping roles and responsibilities. Logistics 

Center officials said that the Radar Product Division team’s coordinated 

operations saved time, including reducing the average number of days 

required to obtain research assistance from 45 days to 1 day.

• FEMA’s customer surveys show improved satisfaction. According to 

FEMA, one of its goals was to transform the public assistance program 

into a customer-driven and performance-based program, thereby 

improving the quality and delivery of service to state and local 

applicants. Customer surveys conducted by FEMA after each disaster 

where public assistance was provided showed that customer 

satisfaction has improved. Fiscal year 2000 survey results showed that 

85.6 percent of the respondents were satisfied with the assistance FEMA 

provided, an increase from the 81.4 percent customer satisfaction level 

FEMA achieved in fiscal year 1999. FEMA’s fiscal year 2001 target is to 

increase its customer satisfaction results up to 87 percent. FEMA 

officials we met with said that delegating authority to the employees in 

Public Assistance Coordinator positions had contributed to this 

improvement.

• OPM’s retirement claims processing team helped another Division in the 

Retirement and Insurance Service reduce a backlog of retirement 

claims. In February 2000, there was a backlog of about 12,000 FERS 

retirement claims, and OPM’s management instituted a seven-point plan 

to address this problem. One of the components of the plan was to 

provide an existing group of CSRS benefits specialists with cross 

training in FERS claims adjudication. OPM said that the team’s 

flexibility, attitude, and work ethic played a significant role in the 

success of this effort, which was OPM’s first cross-training initiative. 

According to OPM, the team’s contribution, along with reallocating staff, 

hiring, and improved automation, led to a 7,000 case reduction in the 

backlog by March 2001.24

24 As reported in its fiscal year 2000 performance report, CSRS claims processing time 

increased to 44 days from 32 days in fiscal year 1999, and FERS processing times increased 

to more than 6 months from 3 months in fiscal year 1999 (see GAO-01-884). OPM has 

recognized the need to address lagging times in retirement claims processing. According to 

OPM, steps to implement its modernization plan have reduced FERS processing times, and 

development of a staffing plan will enable it to reduce CSRS processing times.
Page 26 GAO-01-1070 Human Capital

• IRS’ Substitute for Return Authority has expedited taxpayer compliance. 

In some cases, IRS employees are authorized to prepare substitute tax 

returns for taxpayers that did not file or filed a false return. Instead of 

referring requests to a different office as was done in the past, IRS has 

delegated this authority to revenue officers. This allows one-stop case 

resolution, because the revenue officers now maintain complete control 

of the case through collection of any balance due. By streamlining IRS’

processes, additional taxes are being assessed within 5 to 8 months, 

much faster than the 30 months it usually took before. This also benefits 

taxpayers, because the amount of penalties and interest added to 

taxpayer accounts is reduced when assessments are more timely. IRS 

reported that during a fiscal year 2000 pilot program, revenue officers 

with delegated authorities prepared 257 non-filer cases involving tax 

assessments of about $3.5 million.

• When VBA established its decision review officer position, it first used a 

pilot program to test the new operational approach at 12 locations. VBA 

found that during the pilot phase, which ended December 31, 2000, the 

number of appeals resolved at the regional office level increased by 10 

percent. By implementing this position nationwide, VBA projects there 

will be a 45 percent increase in the number of appeals resolved at the 

regional offices during fiscal year 2001. VBA attributes the increased 

number of appeals resolved at the regional office level to the efforts of 

its decision review officers.

Conclusions As agencies plan and implement the President’s initiative to restructure 

their workforces and streamline their organizations, they need to recognize 

how human capital contributes to achieving missions and goals. Effective 

changes can only be made and sustained through the cooperation of 

leaders, union representatives, and employees throughout the organization. 

All members of an organization must understand the rationale for making 

organizational and cultural changes because everyone has a stake in 

helping to shape and implement initiatives as part of agencies’ efforts to 

meet current and future challenges. Agencies can improve their 

performance by the way they treat and manage their people.

In this report we have identified six key practices used in selected 

initiatives to help to empower and involve employees in identifying and 

implementing needed changes. These practices are 
Page 27 GAO-01-1070 Human Capital

• providing sustained leadership commitment to open communications 

and support culture change,

• engaging unions to include all perspectives in achieving consensus 

about needed changes,

• using a variety of formal and on-the-job training approaches to facilitate 

the development of new skills,

• encouraging employees to combine their resources and talents by 

working together in teams, 

• involving employees in planning and sharing performance information 

so that employees help shape agencies’ goals and better understand how 

their day-to-day activities contribute to results, and

• empowering staff by giving them the authority they need to make 

decisions and effectively conduct agency operations. 

Each federal agency will need to consider the applicability of these 

practices within the context of its own mission, needs, and culture. 

Nevertheless, we believe that agencies can improve their performance, 

enhance employees’ morale and job satisfaction, and provide a working 

environment where employees have a better understanding of the goals 

and objectives of their organizations and how they are contributing to the 

results that American citizens want. We believe that the practices we 

identified should be considered by other agencies as they seek to improve 

their unique operations and respond to the challenges they are facing.

Agency Comments We provided drafts of this report in August 2001 to the Secretary of 

Veterans Affairs, the Secretary of Transportation, the Commissioner of 

Internal Revenue, the Director of the Office of Personnel Management, and 

the Administrator of the Federal Emergency Management Agency, or their 

designees, for their review. Cognizant agency officials from DOT, IRS, OPM, 

and FAA responded orally and agreed with the contents of the draft report. 

In some cases, they also provided written technical comments to clarify 

specific points regarding the information presented. Where appropriate, we 

have made changes to this report that reflect these technical comments. 

FEMA did not provide comments on this report.

As agreed with your office, unless you announce the contents of this report 

earlier, we plan no further distribution until 30 days after its issue date. At 

that time, we will send copies of the report to the Chairman, Subcommittee 

on Oversight of Government Management, Restructuring, and the District 
Page 28 GAO-01-1070 Human Capital

of Columbia, Senate Committee on Governmental Affairs; the Chairman 

and Ranking Member, Senate Committee on Governmental Affairs; and the 

Chairman and Ranking Member, Subcommittee on Security, Proliferation, 

and Federal Services, Senate Committee on Governmental Affairs. We will 

also send copies to the Secretary of Veterans Affairs, the Secretary of 

Transportation, the Commissioner of Internal Revenue, the Director of the 

Office of Personnel Management, and the Administrator of FEMA. In 

addition, we will make copies available to others upon request. 

If you have any questions about this report, please contact me or Susan 

Ragland on (202) 512-6806. Others who contributed to this report were 

N. Scott Einhorn, Shirley Bates, Tom Beall, Gerard Burke, Renee Chafitz, 

Sharon Hogan, Cassandra Joseph, John Lesser, Michelle Sager, and Greg 

Whitney.

Sincerely yours,

J. Christopher Mihm

Director, Strategic Issues
Page 29 GAO-01-1070 Human Capital

Related GAO Products

Managing For Results: Federal Managers’ Views Show Need for Ensuring 

Top Leadership Skills (GAO-01-127, Oct. 20, 2001).

Veterans Affairs: Status in Achieving Key Outcomes and in Addressing 

Major Management Challenges (GAO-01-752, June 15, 2001).

Veterans Benefits: Training for Claims Processors Needs Evaluation

(GAO-01-601, May 31, 2001).

Managing For Results: Federal Managers’ Views on Key Management 

Issues Vary Widely Across Agencies (GAO-01-592, May 25, 2001).

Best Practices: DOD Teaming Practices Not Achieving Potential Results

(GAO-01-510, Apr. 10, 2001).

High-Risk Series: An Update (GAO-01-263, Jan. 2001).

Major Management Challenges and Program Risks: Department of 

Transportation (GAO-01-253, Jan. 2001).

Major Management Challenges and Program Risks: Department of the 

Treasury (GAO-01-254, Jan. 2001).

Major Management Challenges and Program Risks: Department of 

Veteran Affairs (GAO-01-255, Jan. 2001).

Major Management Challenges and Program Risks: Department of 

Veterans Affairs (GAO-01-255, Jan. 2001).

Veterans Benefits Administration: Problems and Challenges Facing 

Disability Claims Processing (GAO/T-HEHS/AIMD-00-146, May 18, 2000).

Veterans Benefits: Promising Claims-Processing Practices Need to be 

Evaluated (GAO/HEHS-00-65, Apr. 7, 2000).

Veterans Benefits Administration: Progress Encouraging, but Challenges 

Still Remain (GAO/T-HEHS-99-77, Mar. 25, 1999).

(450001) Letr
Related GAO Products

Page 30 GAO-01-1070 Human Capital

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