A Model of Strategic Human Capital Management
Published: 2002-03-15T00:00:00

Fast Facts:

Highlights:
section_title: What GAO Found
paragraphs: GAO released an exposure draft on its Model of Strategic Human Capital Management, which is intended to help federal agency leaders better manage their organizations' most important asset--their people. The model is designed to help agency leaders effectively use their people, or human capital, and determine how well they integrate human capital considerations into daily decision-making and planning for the program results they seek to achieve. In so doing, the model highlights the importance of a sustained commitment by agency leaders to maximize the value of their agencies' human capital and manage related risks.

section_title: Letter
paragraphs: This exposure draft of our Model of Strategic Human Capital Management  is intended to help federal agency leaders better manage their  organizations’ most important asset—their people.  Federal agencies that  acquire, develop, and retain high performing employees with the  appropriate skills and competencies are better able to respond to the needs  of the public on a daily basis and in times of crisis.  The events of  September 11, 2001, and the continuing efforts to ensure homeland security  reinforce the vital importance of public servants at all levels.
The model is designed to help agency leaders effectively use their people,  or human capital, and determine how well they integrate human capital  considerations into daily decision-making and planning for the program  results they seek to achieve.  In so doing, the model highlights the  importance of a sustained commitment by agency leaders to maximize the  value of their agencies’ human capital and manage related risks.
In publishing this model, we are aware that GAO is not the only agency  releasing tools for strategic human capital management.  On October 30,  2001, the Office of Management and Budget (OMB) developed standards  for success in each of its five governmentwide management initiatives,  including the strategic management of human capital, to show how well an  agency is executing the initiatives.  In December 2001, the Office of  Personnel Management (OPM) released a human capital balanced  scorecard to assist agencies in responding to the OMB tool.  While GAO’s  human capital model was developed independently of OMB and OPM, we  provided drafts of the model for their review prior to publication to help  ensure that the three efforts are conceptually consistent.  We hope that  agencies will find the perspective and information in our human capital  model helpful in their efforts to respond to the administration’s  management initiatives, get to “green” on OMB’s management scorecard,  and use the tools developed by OPM.
Over the coming months, we will continue to work closely with OPM, OMB,  Congress, and others to explore opportunities to develop a more fully  integrated set of guidance and tools for agencies to use to address their  human capital challenges.  Consistent with that collaborative approach, we  are issuing this model as an exposure draft as a way of seeking further  advice and feedback.  We also hope to identify additional examples of specific and practical steps agencies are taking to make progress.  If you  have comments, questions, or would like to inform us regarding the  progress you have made, please contact J. Christopher Mihm, Director,  Strategic Issues, at mihmj@gao.gov.
subsections: section_title: Preface
paragraphs: People are an agency’s most important organizational asset.  An  organization’s people define its character, affect its capacity to perform,  and represent the knowledge-base of the organization.  As such, effective  strategic human capital management approaches serve as the cornerstone  of any serious change management initiative.  They must also be at the  center of efforts to transform the cultures of federal agencies so that they  become less hierarchical, process-oriented, stovepiped, and inwardly  focused; and more flat, results-oriented, integrated, and externally focused.
In January 2001, GAO designated strategic human capital management as a  governmentwide high-risk area.  As GAO’s January 2001 High-Risk Series  and Performance and Accountability Series reports make clear, serious  human capital shortfalls are eroding the ability of many agencies, and  threatening the ability of others, to economically, efficiently, and effectively  perform their missions.  Plainly, the major problem is not federal  employees.  Rather, the problem is the lack of a consistent strategic  approach to marshaling, managing, and maintaining the human capital  needed to maximize government performance and ensure its  accountability.  Our High-Risk report outlined four pervasive human  capital challenges now facing the federal government:   Leadership, continuity, and succession planning  Strategic human capital planning and organizational alignment  Acquiring and developing staffs whose size, skills, and deployment meet   Creating results-oriented organizational cultures These challenges are longstanding and will not be quickly or easily  addressed.  They require sustained and inspired efforts by many parties,  including the President, department and agency leaders, the Office of  Management and Budget, the Office of Personnel Management, Congress,  and others.  Comprehensive human capital legislative reforms will likely  be needed, but agency leaders must not wait for them to happen.  Much of  the authority agency leaders need to manage human capital strategically is  already available under current laws and regulations.  Therefore, we  believe the first step toward meeting the government’s human capital  challenges is for agency leaders to identify and make use of all the  appropriate administrative authorities available to them to manage their  people for results.  The use of these authorities often will need to be  undertaken as part of and consistent with proven change management  practices.  The second step is for policymakers to pursue incremental  legislative reforms to give agencies additional tools and flexibilities to hire,  manage, and retain the human capital they need, particularly in critical  occupations.  The third step is for all interested parties to work together to  identify the kinds of comprehensive legislative reforms in the human  capital area that should be enacted over time.  These reforms should place  greater emphasis on skills, knowledge, and performance in connection  with federal employment and compensation decisions, rather than the  passage of time and rate of inflation, as is often the case today.
subsections: section_title: A Model Of Strategic Human Capital Management: A New Tool For Agency Leaders
paragraphs: The human capital model highlights the kinds of thinking that agencies  should apply, as well as some of the steps they can take, to make progress  in managing human capital strategically.  The model consists of the  following:  The Critical Success Factors Table identifies eight critical success  factors for managing human capital strategically, which embody an  approach to human capital management that is fact-based, focused on  strategic results, and incorporates merit principles and other national  goals.  Each critical success factor is then presented in a table,  illustrating their development across three levels.
Discussions in Pointers expand upon the eight critical success factors  to highlight not just the needed actions but the kind of thinking that  marks high-performing organizations’ approaches to managing people  through the presentation of concepts, steps for progressing, and agency  case illustrations.
Appendix A includes a list of related GAO products corresponding to the  eight critical success factors.
In developing the model, we built upon GAO’s Human Capital: A Self- Assessment Checklist for Agency Leaders (GAO/OCG-00-14G, September  2000).  In addition, we considered lessons learned from GAO reports on  public and private organizations that are viewed as leaders in strategic  human capital management and managing for results. Additional GAO  reports highlighting the progress and shortcomings of individual federal  agencies in these two areas were also consulted (Appendix A).  Our model  was further informed by the findings of external reports on strategic human  capital management and managing for results from academia, OPM, the  Merit Systems Protection Board, the National Academy of Public  Administration, and others.
We also reflected upon our own experience in strategic human capital  management and lessons learned from our use of flexibilities available to  GAO for maximizing the performance and accountability of GAO  employees.  Since maximizing performance and assuring accountability  are at the heart of our mission at GAO, we believe it is our responsibility to  lead by example, especially in the human capital area.  By managing GAO’s  workforce strategically and focusing on results we are helping to improve  our performance and enhance accountability.  By doing so, we also hope to  demonstrate to other federal agencies that they can make similar  improvements in the way they manage their people.
Individuals who made key contributions to this product include Stephen  Altman, Martin DeAlteris, Ellen V. Rubin, Shelby D. Stephan, and Edward  Stephenson.
section_title: Critical Success Factors Table
paragraphs: The Critical Success Factors Table identifies eight critical success factors  for managing human capital strategically.  These factors are organized in  pairs to correspond with the four governmentwide high-risk human capital  challenges that our work has shown are undermining agency effectiveness  (Figure 1).  Taken together, the eight critical success factors embody an  approach to human capital management that is fact-based, focused on  program results and mission accomplishment, and incorporates merit  principles and other national goals.  When considering the human capital  cornerstones and the critical success factors, it is important to remember  that they are interrelated and mutually reinforcing.  Any pairing or ordering  of human capital issues may have a sound rationale behind it, but no  arrangement should imply that human capital issues can be  compartmentalized and dealt with in isolation from one another.
All of the critical success factors reflect two principles that are central to  the human capital idea:  People are assets whose value can be enhanced through investment.  As  with any investment, the goal is to maximize value while managing risk.
An organization’s human capital approaches should be designed,  implemented, and assessed by the standard of how well they help the  organization achieve results and pursue its mission.
For each of the eight critical success factors, the table describes three  levels: Level 1, Level 2, and Level 3 (Figure 2).
The descriptions portray the approach to managing people that can be  expected of an organization at each level.  To understand the progression  from level to level, it is best to keep in mind the two central human capital  ideas just discussed.  An agency at Level 1 is unlikely to have effectively put  these two principles into practice.  At Level 2 an agency is clearly taking  steps to apply them.  An agency at Level 3 has made these principles an  integral part of its approach to doing business, and can see demonstrable  results from having done so.  Progressing to Level 3, which each agency  should strive to accomplish, will take considerable time, effort, and  resources on behalf of agency leadership to successfully manage the  required organizational change.  The use of this model requires a long-term  commitment to valuing human capital as a strategic asset.
Agency leaders view people as  costs to be cut rather than as  assets to be valued.   Management decisions  involving the workforce are  often made without considering  how these decisions may affect  mission accomplishment.   Similarly, business decisions  are often made without due  consideration of the human  capital needs they entail or the  human capital approaches that  may be needed for successful  implementation.
Agency leaders acknowledge  the importance of human capital  to mission accomplishment, and  have informed managers at all  levels of the roles they need to  play in acquiring, developing,  and retaining people to meet the  agency’s programmatic needs.   The agency is working to  explicitly link its human capital  approaches to intended program  results.
Agency leaders view people as  an important enabler of agency  performance, recognize the need  for sustained commitment by the  agency to strategically manage  its human capital, and stimulate  and support efforts to integrate  human capital approaches with  organizational goals.  The  agency’s human capital  approaches are consistently  developed, implemented, and  evaluated by the standard of how  well they support the agency’s  efforts to achieve program results.   Managers at all levels actively  support these concepts and are  prepared and held accountable  for effectively managing people.
Human capital management is  considered a support function,  separate from and generally  subordinate to the agency’s  core planning and business  activities.  The “personnel” or  “human resource management”  office is largely process- oriented and focused on  ensuring agency compliance  with merit system rules and  regulations.  Expectations for  staff in these offices are limited  to processing transactions and  addressing “personnel issues”  on a case-by-case basis.
Human capital professionals  have begun to focus on the  agency’s business needs and  their role in filling them.  The  human capital function is in  transition “from rules to tools,”  facilitating compliance with merit  system principles and other  national goals, and helping the  agency more effectively meet its  strategic and business goals.   Human capital professionals are  expected to be customer- oriented and to develop the  expertise needed to be effective  in their new roles.
Human capital professionals  partner with agency leaders and  line managers in developing  strategic and program plans.  The  human capital office provides  effective human capital strategies  to meet the agency’s current and  future programmatic needs and  fulfil merit systems principles and  other national goals.  Human  capital professionals are  prepared, expected, and  empowered to provide a range of  technical and consultative  services to their internal  customers; agency leaders and  managers consistently recognize  the key role of human capital  professionals in helping the  agency and its people effectively  pursue their mission.  The agency  has streamlined personnel  processes and effectively  employs technology to meet  customer needs.
The agency has yet to fully  recognize the link between its  human capital approaches and  organizational performance  objectives.  Existing human  capital approaches have yet to  be assessed in light of current  and emerging agency needs.   The agency changes or adopts  human capital approaches  without considering how well  they support organizational  goals and strategies, or how  these approaches may be  interrelated.
The agency's human capital  needs are considered during  strategic and annual planning.   Existing human capital  approaches have been assessed  for their alignment with current  and emerging needs.  New  human capital initiatives are in  design or implementation  specifically to support  programmatic goals.  These  initiatives are building towards a  coherent, results-oriented human  capital program.
The agency's human capital  approaches demonstrably support  organizational performance  objectives.  The agency considers  further human capital initiatives or  refinements in light of both  changing organizational needs  and the demonstrated successes  or shortcomings of its human  capital efforts.  The human capital  needs of the organization and  new initiatives or refinements to  existing human capital  approaches are reflected in  strategic workforce planning  documents.
Decisionmakers lack critical  information with which to  create a profile of the  workforce (e.g., skills mix,  deployment, and demographic  trends) or to evaluate the  effectiveness of human capital  approaches, partially due to  inadequate data sources.   Performance measures and  goals for the agency's human  capital programs, especially as  they link to programmatic  outcomes, have yet to be  identified.
The agency is working to ensure  that information systems are in  place to generate meaningful  and reliable data across a range  of human capital activities.  Data  gathered includes  workforce  shape, competencies and skills  mix, and demographic trends.  The agency has profiled its  workforce so that usable  information is on hand with  which to make decisions in such  areas as acquiring, developing,  and retaining talent.  The agency  has identified performance  measures and goals for its  human capital programs, with  attention to establishing the link  between these programs and  agency results.
Decisions involving human capital  management and its link to  agency results are routinely  informed by complete, valid, and  reliable data.  Data gathered is  kept current.  Agency leaders use  this information to manage risk by  spotlighting areas for attention  before crises develop and to  identify opportunities for  improving agency results.   Performance measures for the  agency's human capital programs  have been distilled to a vital few,  and are an integral part of the  agency's strategic planning,  performance measurement, and  evaluation efforts.  Data on the  agency's workforce profile,  performance goals and measures  for human capital approaches,  and areas requiring agency  attention are reflected in strategic  workforce planning documents.
Agency leaders approach  human capital expenditures  (e.g., professional development  and knowledge management,  recruiting programs, pay and  benefits, performance  incentives, and enabling  technology) as costs that  should be minimized rather  than as investments that should  be managed to maximize value  while minimizing risk.  Funding  decisions may be ad hoc,  without clearly defined  objectives or adequate  consideration of their  implications for the workforce.
Human capital expenditures are  regarded as investments in  people and in the agency's  capacity to perform its mission.   Investment strategies for  acquiring, developing, and  retaining staff are evaluated and  developed in light of modern  human capital management  practices.
Agency strategies for investing in  human capital are fully integrated  with needs identified through its  strategic and annual planning.   The goals and expectations for  these investments are transparent  and clearly defined, and their  rationale is consistent across the  range of human capital programs.      The efficiency of the investments  is continuously monitored and the  effectiveness is periodically  evaluated.
Agency managers believe that  meaningful improvements in  human capital management  are not feasible.  The range of  tools and flexibilities available  to the agency under current  laws and regulations have yet  to be explored.  In addition, the  department or agency may  have self-imposed constraints  in place that are excessively  process-oriented or based on  obsolete perceptions of civil  service laws, rules, or  regulations.
Standardization and by-the-book  human capital management are  yielding to flexible and innovative  approaches. Managers have  identified the tools and  flexibilities available to them  under current law and are using  many of these to modernize their  human capital approaches to  help meet current and emerging  needs.  The agency is looking  both within and outside itself for  model principles and practices,  and is pursuing opportunities to  test new and more results- oriented approaches.
The agency tailors its human  capital strategies to meet its  specific mission needs.  As such,  it is taking all appropriate  administrative actions available to  it under current laws, rules, and  regulations.  In addition, it is  exploring opportunities to  enhance its competitiveness as  an employer and eliminate  barriers to effective human capital  management.  If needed, this  includes producing a compelling  business case to support selected  legislative initiatives.
Managers and staff rigidly  adhere to standardized  procedures and traditional  modes of thinking.  Human  capital management in the  agency is driven by top-down  decision-making; relations  between management and  employees and their  representatives are frequently  more adversarial than is  necessary.  Substantial time  and resources are consumed  by reacting to workplace  disputes and long-standing  sources of conflict.  The  agency's approach to equal  opportunity is compliance- oriented and reactive.
The agency is lessening its  reliance on standardized  approaches and encouraging  program managers to innovate  and take risks.  Agency leaders  are acknowledging the value of  employee input and feedback to  improve the workplace  environment and focus on  results; management and  employee representatives stress  communication and identify  shared interests.  The agency  works to build a diverse  workforce and has declared  "zero tolerance" of  discrimination.
Managers, teams, and employees  at all levels are given the authority  they need to accomplish  programmatic goals; innovation  and problem-solving are  encouraged.  In developing  approaches to managing the  workforce, agency leaders seek  out the views of employees at all  levels and communication flows  up and down the organization.   Management and employee  representatives work  collaboratively to achieve  organizational outcomes.  The  agency works to meet the needs  of employees of all backgrounds,  maintains "zero tolerance" of  discrimination, strives actively to  reduce the causes of workplace  conflicts, and ensures that  conflicts are addressed fairly and  efficiently.  The agency recognizes  and demonstrates that an  inclusive workforce is a  competitive advantage for  achieving results.
The organizational culture is  hierarchical, process-oriented,  stovepiped, and inwardly  focused.  Performance  expectations for managers and  staff are blurred by an unclear  organizational mission and a  lack of clearly defined and  consistently communicated  core values.
The agency has created the  basis for employee expectations  by defining and communicating  its mission, core values, strategic  goals and objectives, and  business strategies.   Expectations for managers are  shifting from complying with  detailed rules and procedures to  accomplishing program goals.   The agency's performance  management and incentive  systems are being designed and  tested to make employees aware  of their roles and responsibilities  in helping the agency achieve its  performance goals.  Efforts are  under way to enhance internal  cooperation.
The organizational culture is  results-oriented and externally  focused.  Individual performance  management is fully integrated  into the agency's organizational  goals and is used as a basis for  managing the organization.  Managers are held accountable  through performance  management and rewards  systems for achieving strategic  goals and objectives, creating  innovation, and supporting  continuous improvement.  Clearly  defined, transparent, and  consistently communicated  performance expectations  addressing a range of  results/customer/employee issues  are in place to rate, reward, and  hold accountable employees and  teams at all levels.
section_title: Pointers
paragraphs: Maximizing the value of human capital is a function not just of specific  actions but of cultural transformation. This section expands the discussion  of the eight critical success factors to highlight the kind of thinking and  action that marks high-performing organizations’ approaches to managing  people through the presentation of Concepts and Steps for Progressing that  agencies can pursue to help maximize the value of their human capital.
Accompanying the discussion of each critical success factor is a case  illustration involving a federal agency that has taken positive steps toward  addressing one of its human capital challenges.  We have also noted, where  appropriate, the positive consequences that have resulted from such  efforts. The fact that an organization is profiled for a particular critical  success factor is not meant to imply complete success or lack of success in  other dimensions.  Furthermore, the efforts highlighted in the case  illustrations are not intended to exemplify all the potential steps an agency  may take to make progress under each critical success factor.
subsections: section_title: Leadership
subsections: section_title: Commitment to Human Capital Management
paragraphs: Concepts: An effective organization includes a senior leadership team  committed to developing more effective ways of doing business,  accomplishing results, and investing in human capital.  Perhaps the most  important element of successful management reform is the demonstrated  commitment of top leaders to change.  Political leaders as well as senior  career executives demonstrate this commitment by personally developing  and directing reform, driving continuous improvement, and characterizing  the agency’s mission in reform initiatives.
Previous GAO reports and testimonies have underscored the importance of  having agency leaders and managers with the skills and commitment to  drive cultural change that focuses on results.  Agency leaders, career and  political alike, should be held accountable and should hold others  accountable for the ongoing monitoring and refinement of human capital  approaches to ensure continuous effectiveness, constant improvement,  and increased mission accomplishment within the agency.  Moreover, a key  factor in the success of any specific strategic human capital initiative is the  sustained attention of senior leaders and managers at all levels of the  agency to valuing and investing in their employees.  This leadership is  critical for an agency to overcome its natural resistance to change, to  marshal the resources needed in many cases to improve management, to  build and maintain an organizationwide commitment to improving its way  of doing business, and to create the conditions for effectively improving  human capital approaches.
Steps for Progressing: We have noted that successful organizations know  the importance of fostering a committed leadership team and providing  reasonable continuity through succession planning and executive  development.  Career executives can provide the long-term commitment  and focus needed for the agency to achieve strategic human capital  management. Two mechanisms for fostering a committed leadership team  are an executive development program and comprehensive succession  planning which are linked to agency goals and objectives. The executive  development program can include planned developmental opportunities,  learning experiences, and feedback for candidates.  Support for and use of  government and nongovernment executive development programs can  help agency leaders in establishing an active executive development  program.
To hold managers accountable for human capital management, agency  leaders can make an effort to select managers who have the ability to  manage human capital and can see the connection between that  responsibility and the organization’s ability to achieve its long-term goals.  Performance appraisal feedback for those managers selected should  include a review of human capital management competencies, technical  skills, and the accomplishment of program results.  Furthermore, agencies  can modify incentive systems to emphasize the consideration of long-term  consequences of human capital management decisions in addition to  immediate results.
Agency leaders have other opportunities for displaying their commitment  to human capital.  Continuous learning efforts, employee-friendly  workplace policies, competency-based performance appraisal systems, and  retention and reward programs are all ways in which agencies can value  and invest in their human capital. The sustained provision of resources for  such programs can show employees and potential employees the  commitment agency leaders have to strategic human capital management.
To demonstrate its commitment to human capital, agency leadership at the U.S. Mint (Mint) has supported several initiatives involving the use of human capital  flexibilities.  According to officials at the Mint, the full support of agency leadership  was attained for these initiatives that were pursued for their strategic value and  alignment with business goals.  The Mint has pursued approaches in the areas of  recruiting, hiring, developing, and retaining talent, increasing the flexibility of the  workforce, and respecting and rewarding employees.
The U.S. Mint is facing considerable challenges to recruit and retain a high quality workforce and, in response, has begun to explore ways to take advantage of all the human capital flexibilities currently available under existing laws and regulations.  Recognizing this challenge, the Office of the Chief Financial Officer obtained the full support of agency leadership to assign two full time employees and provide budget resources for a Human Resources Flexibilities Team that was formed to do a two- phase study concerning human capital flexibilities.  Phase one included an extensive review of all human capital flexibilities currently available to the Mint under existing laws and regulations.  Phase two included an analysis of the Mint's current use of flexibilities and the development of recommendations to agency leadership for increasing their effectiveness as recruitment and retention tools that were prioritized against the Mint's strategic goals.  Many new programs have been initiated or are planned as a result of this effort.  For example, the Mint has implemented an Information Technology Pilot Study to facilitate the hiring process, which has resulted in the Mint hiring six new IT employees in an average time span of 15 days.  Still in development is a Single Agency Qualifications Standard with the purpose of collapsing 13 occupations into one occupation to provide management and employees with the flexibility to move from one job to another. Also in development is an Occupational Training Agreements program in conjunction with the Competency Based Careers initiative.  Under the Mint's competency based job description, an employee can sign an occupational training agreement stating that he or she will acquire new skills which will allow for promotion without the one year time-in-grade requirement.  According to agency officials, managers, union representatives, human resources staff, and employees were informed of and involved in the development of these new approaches.
section_title: Role of the Human Capital Function
paragraphs: Concepts: The effective pursuit of organizational alignment and strategic  human capital management requires the integration of human capital  approaches with strategies for accomplishing organizational missions and  program goals.  Such an integration allows the agency to ensure that its  core processes efficiently and effectively support mission-related  outcomes.  This new strategic approach, or redirected focus of the human  capital function, centers on the contributions that it can make to the long- term accomplishment of the agency’s mission.  The new focus will also  require an expansion of the role of human capital professionals from  largely paperwork processors to functioning as advisors to and partners  with senior leadership and managers as well as technical experts who  ensure that merit principles and other national goals are upheld.  With  these newly skilled human capital professionals as trusted members of the  management team, the agency can be provided with the knowledge of  strategic human capital management that will allow it to incorporate such  principles into the overall strategic and program plans of the organization.
Steps for Progressing: High-performing organizations we examined treat  strategic human capital management as fundamental to effective overall  management, evidenced through the integration of the human capital  function into management teams.  The human capital office in such  organizations provides effective human capital strategies to meet current  and future programmatic needs and works to ensure that merit systems  principles and other national goals are fulfilled.  The role of human capital  professionals should focus on:  Developing, implementing, and continually assessing human capital  policies and practices that will help the agency achieve its mission   Leading or assisting in the agency’s workforce planning efforts   Participating as partners with line managers   Reaching out to other organizational functions and components through  facilitation, coordination, and counseling  Providing integrated mission support.
Human capital professionals functioning in this role can serve as an  important source of information for strategic workforce planning,  continuous learning, and knowledge management initiatives. Moreover,  they can provide agency leaders with an interpretation of agency data in  areas such as retirement eligibility and projection numbers, retention rates,  or skills assessments that can allow agency leaders to more effectively  pursue strategic human capital management and organizational alignment.  High-performing organizations also recognize the need for leveraging the  internal human capital function with external expertise, such as  consultants, professional associations, and other organizations, as needed.
For human capital professionals to begin acting in this new capacity,  agency leaders must ensure that they have the competencies and  experience to effectively take on the expected role. One tool available to  agencies for identifying the appropriate competencies is the International  Personnel Management Association’s Human Resource Competency  Model.  The new role of the human capital function will require agencies to  recruit new professionals and train existing professionals in the  competencies to help align human capital management with the specific  needs and circumstances of each agency.  It will also require agencies to  constantly reevaluate their internal procedures so that fewer staff  resources are required for processing transactions and more resources can  be dedicated to meeting the strategic needs of the organization.   Streamlining personnel transactions in conjunction with the greater use of  technology to automate paper-based personnel processes is critical to  making this shift.
Because of the varying needs of managers at different program and regional  offices, the Nuclear Regulatory Commission (NRC) refers to its personnel  specialists as account representatives in an attempt to integrate the human capital  function into management teams.  Approximately 5 years ago, the Office of Human  Resources within NRC attained its goal of providing full service operations by  creating one-stop shopping for its clients.
In an effort to integrate human capital throughout the organization so that it is not a stand-alone function and it is incorporated during the budget process, NRC refers to its personnel specialists as account representatives.  Teams of account representatives are assigned to specific program/regional offices within NRC to act in a consultant role for managers.  This provides managers in the field with an on- site team of HR account representatives whom they consult with on the full range of HR management issues, services, and operations.  The account representatives provide information and insights on such matters as organizational structure and position management, staffing and recruiting strategies, performance management, awards and recognition, and labor and employee relations issues to managers at the various program/regional offices.  NRC reported that for the first time, internal fiscal year 2003 budget documents reflected the agencywide human capital management component of agency programs and resources.  NRC also  reported that this approach, implemented as part of the agency's Planning, Budgeting, and Performance Management process, established an agencywide perspective for human capital management and facilitated an integrated and coordinated approach to human capital planning and budgeting.
section_title: Strategic Human Capital Planning
subsections: section_title: Integration and Alignment
paragraphs: Concepts: Effective organizations integrate human capital approaches as  strategies for accomplishing their mission and programmatic goals and  results.  The effectiveness of this integration and alignment is judged by  how well it helps achieve organizational goals.  Furthermore, high- performing organizations stay alert to emerging mission demands and  human capital challenges and remain open to reevaluating their human  capital practices in light of their demonstrated successes or failures in  achieving the organization’s strategic objectives.
Steps for Progressing: Organizations can evaluate the extent to which  human capital approaches support the accomplishment of programmatic  goals through the use of workforce planning.  Workforce planning efforts,  including succession planning, linked to strategic goals and objectives, can  enable an agency to remain aware of and be prepared for its current and  future needs as an organization, such as the size of the workforce; its  deployment across the organization; and the knowledge, skills, and abilities  needed for the agency to pursue its mission.  This planning will entail the  collection of valid and reliable data on such indicators as distribution of  employee skills and competencies, attrition rates, or projected retirement  rates and retirement eligibility by occupation and organizational unit.   Agencies can use an organizationwide knowledge and skills inventory and  industry benchmarks to identify current problems in their workforces and  plan for future improvements.
To begin assessing how well existing human capital approaches support  their missions, goals, and other organizational needs, agencies can use  GAO’s human capital framework, Human Capital: A Self-Assessment  Checklist for Agency Leaders (GAO/OCG-00-14G).  This assessment tool  identifies a number of human capital elements and underlying values  common to high-performing organizations.  Furthermore, the planning  requirements of the Government Performance and Results Act (GPRA)  provide a useful framework for agencies to integrate their human capital  strategies with their strategic and programmatic planning.  Other tools  available, including OPM’s five-step workforce planning model, may  provide additional guidance.
The appropriate geographic and organizational deployment of employees  can further support organizational goals and strategies.  Effective  deployment strategies can enable an organization to have the right people,  with the right skills, doing the right jobs, in the right place, at the right time  by making flexible use of its internal workforce and appropriately using  contractors.  The use of contractors will require decisions to be made,  based upon strategic planning efforts, about what types of work are best  done by the agency or contracted out.  While reviewing outsourcing  options, it is also important to consider whether or not the agency has the  expertise available to manage the cost and quality of contractor activities.
In response to the Restructuring and Reform Act of 1998 (Restructuring Act), the  Internal Revenue Service (IRS) has taken several steps toward modernizing its  organizational structure and its performance management system.The  Restructuring Act led IRS to adopt a new mission statement that places greater  importance on serving the public and meeting taxpayer needs, developing and  implementing a reorganization plan, and enhancing taxpayers' rights.  In responding to the requirements of the Restructuring Act, IRS has begun to align human capital  approaches to assist in accomplishing its strategic goal of improved customer  service.
In the first 3 years since the implementation of the Restructuring Act, IRS has developed an integrated modernization strategy and implemented a new  organizational structure with four customer-focused operating divisions to meet the needs of the taxpayer segments it serves and reflect the agency's strategic plan. The four operating divisions that have resulted from the modernization strategy include: large and mid-size business, tax-exempt and government entities, small business and self-employed, and wage and investment.  This new direction, reflected in the strategic plan, outlines three strategic goals and corresponding balanced measures, including a strategic goal of providing service to each taxpayer that is measured through customer satisfaction data.  To achieve this goal, IRS has recently implemented a customer service employee-training program that offers employees specialized training geared toward the taxpayer segment they serve.  In addition, IRS's new performance management plan calls for each operating division to have complementary goals, objectives, and measures for front-line managers to develop plans identifying the actions they need to take to support operational objectives. To assist in this effort, IRS implemented a realigned performance evaluation system for executives, managers, and supervisors in February 2000.
section_title: Data-Driven Human Capital Decisions
paragraphs: Concepts: A fact-based, performance-oriented approach to human capital  management is crucial for maximizing the value of human capital as well as  managing risk.  As discussed in the previous section, high-performing  organizations use data to determine key performance objectives and goals  which enable them to evaluate the success of their human capital  approaches.  These organizations also identify their current and future  human capital needs, including the appropriate number of employees, the  key competencies and skills mix for mission accomplishment, and the  appropriate deployment of staff across the organization and then create  strategies for identifying and filling gaps. Valid and reliable data are critical  to assessing an agency’s workforce requirements and heighten an agency’s  ability to manage risk by allowing managers to spotlight areas for attention  before crises develop and identify opportunities for enhancing agency  results.  Although the cost of collecting data may be significant, the costs of  making decisions without the necessary information can be equally  significant.
Steps for Progressing: Collecting and analyzing data is a fundamental  building block for measuring the effectiveness of human capital  approaches in support of the mission and goals of an agency.  For example,  agencies may have data on the number of people receiving training and  money spent on training, however to measure the real impact of training,  agencies should develop additional indicators to determine the relationship  of training efforts to the accomplishment of agency goals and objectives.   This effort should include developing a knowledge, skills, and  competencies inventory for employees and updating it regularly to  determine if there is an increase in the inventory of skills for which  employees are being trained.  Organizations should also consider collecting  and using performance data to identify gaps in performance, skills,  competencies, workforce shape, and other areas.  Just as human capital  approaches are aligned with strategies for accomplishing programmatic  goals, so should performance measures of human capital approaches be  aligned with performance measures of programmatic efforts.
The types of data that can inform workforce planning efforts include but  are not limited to: size and shape of the workforce, skills inventory,  attrition rates, projected retirement rates and eligibility, deployment of  temporary employee/contract workers, dispersion of performance  appraisal ratings, average period to fill vacancies, data on the use of  incentives, employee feedback surveys, feedback from exit interviews,  grievances, or acceptance rates of job candidates.
The Air Force Materiel Command (AFMC) has taken steps toward improving the  collection and use of its human capital data to manage the risk it faces in light of  retirement eligibility projections and the potential loss of institutional memory by  developing plans for reshaping its workforce to meet its future business needs.  The  mission of AFMC, the largest employer of civilians in the Air Force, is to develop,  deliver, and sustain the best products for the Air Force.
In October 1998 AFMC began a workforce study, “Sustaining the Sword,” so that the  agency's human capital approaches for civilian, military, and contractor employees  could be tailored to meet future business needs, such as depot maintenance and  information management.   The work force study was conducted in two phases.   AFMC reports that Phase I provided an overarching view of the current and  projected 2005 work force and the potential impact of a prolonged hiring freeze and  a workforce nearing retirement.   Phase II was reportedly a more detailed analysis,  focusing on work force data collected from AFMC centers, at position-level detail.   Results were analyzed in support of workforce planning for the purpose of achieving  future business needs.  The study led to the development of metrics for fact-based  personnel management to collect data for demonstrating the successes and  shortcomings of AFMC human capital approaches.  Such metrics include retention  and attrition of new IT recruits, progress made in fulfilling individual professional  development plans, and exit survey data, to name a few.  AFMC reported that these  data and the results of initial workforce shaping activities have led to a more  informed understanding of current workforce gaps and those that may surface as  large numbers of employees become eligible to retire.  In light of this detailed effort,  AFMC's workforce study was designated as one of a number of best practices by the  Office of the Secretary of Defense that should be benchmarked for acquisition  workforce planning across the department.
section_title: Acquiring, Developing, And Retaining Talent
subsections: section_title: Targeted Investments in People
paragraphs: Concepts: Agencies that embrace the principles of human capital  management realize that as the value of their people increases, so does the  performance capacity of the organization. They also realize that investing  in and enhancing the value of employees is a win-win goal for employers  and employees alike.
In making this investment, leaders should provide resources and incentives  that support new ways of working to encourage employees to attain agency  goals and objectives and invest in tools to maximize the efficiency and  effectiveness of administrative processes. In addition to investing in  individual employees, new human capital approaches need sufficient  resources for planning, implementation, and evaluation.  Resources may  include funds, personnel, staff hours, information technology, or facilities  and should be provided for in the agency’s budget as appropriate.  When  considering these opportunities, agencies must also consider the  competing demands confronting them, the limited resources available, and  how those demands and resources require careful balancing and  prioritization.  Agencies should consider making targeted investments in  specific human capital approaches in light of three fundamental ideas:   First, the approaches should help the agency attract, develop, retain,  and deploy the best talent and then elicit the best performance for  mission accomplishment.
Second, the approaches should have clearly defined, well-documented,  transparent, and consistently applied criteria for making these  investments.
Third, decisions regarding these investments should be based largely on  the expected improvement in agency results.
Steps for Progressing: In confronting the human capital challenges posed  by downsizing and the hiring freezes of the 1990s, agencies have the  opportunity to develop an environment that supports continuous learning  and invest in training and professional development programs, recruitment  and retention strategies, or performance incentives.
Agency leaders can show their commitment to strategic human capital  management by investing in professional development and mentoring  programs that can also assist in meeting specific performance needs.   These programs can include opportunities for a combination of formal and  on-the-job training, individual development plans, rotational assignments,  periodic consultations with senior managers, periodic formal assessments,  and mentoring relationships with other employees.  One critical area on  which to focus better training investments is contract management, where  agencies must have enough skilled staff on board to oversee the quality,  cost, and timeliness of the services delivered by third parties.
In addition to investing in training and professional development, agencies  have the authority to offer recruiting bonuses, retention allowances, and  skill-based pay to attract and retain the critical skills needed for mission  accomplishment.  Investing in performance incentives can also be  particularly important in steering the workforce.  The success of the  incentives can be measured through the use of balanced measures that are  results-oriented, client-based, encompass employee feedback and reveal  the multiple dimensions of performance.
Widespread shortfalls in the human capital area have contributed to demonstrable  shortfalls in agency and program performance in the information technology (IT) area  governmentwide.  To address its challenge, the State Department is making targeted  investments in its IT workforce to ensure it has the critical skills and competencies on  hand for mission accomplishment through the use of retention and skill development  strategies.
In light of the increased demand and competition for information technology workers  to perform mission-critical tasks, the State Department is investing in learning incentives as a tool to attract and retain IT professionals.  The State Department uses professional qualification incentives for IT employees in the Foreign Service and retention allowances for civil service IT employees.  Incentives and allowances that range from 5 to 15 percent of base pay are available for those who obtain job- related degrees and certifications; State also provides the majority of funding for the cost of required classes.  This program has helped State to increase the skills base of its information technology workforce, attract new IT employees, and retain current  employees.
section_title: Human Capital Approaches Tailored to Meet Organizational Needs
paragraphs: Concepts: Agencies need not wait for comprehensive civil service reform to  modernize their human capital approaches.  Under current laws, rules, and  regulations, agencies have the flexibility to offer competitive incentives to  attract employees with critical skills; to create the kinds of performance  incentives and training programs that motivate and empower employees;  and to build constructive labor-management relationships that are based on  common interests and the public trust.  Agencies should develop a tailored  approach to their use of available flexibilities by taking advantage of those  flexibilities that are appropriate for their particular organization and its  mission accomplishment.
Steps for Progressing: Successful organizations develop and implement  human capital approaches based on a data-driven assessment of the  organization’s specific needs and capabilities.  As discussed in an earlier  section, valid and reliable data are the starting point for such assessments.   With these data in hand, leading organizations use benchmarking to  compare their processes with those of public and private organizations that  are considered the best in their fields.  Agencies informed by best practices  are more likely to develop their own innovative practices.  The  International Personnel Management Association and the National  Academy of Public Administration, among others, have extensive case  studies and examples of leading practices that may provide useful lessons  for agencies considering employing flexibilities or developing new human  capital approaches.
As agencies pinpoint human capital approaches that can help improve  performance, they can explore the range of authorities available to them.   In that regard, OPM has published Human Resource Flexibilities and  Authorities in the Federal Government to assist agencies in identifying  available flexibilities.  Moreover, agencies may develop demonstration  projects through OPM, temporarily waiving selected federal civil service  laws, rules, and regulations for the purposes of developing, testing, and  evaluating new human capital approaches that may have broader  applicability than existing ones.  Demonstration projects can focus on  recruiting and hiring procedures, classification and compensation systems,  incentive systems, or on involving employees and labor organizations in  personnel decisions.  OPM has recently expressed a willingness to conduct  more demonstration projects.
Educating agency personnel about the availability and proper use of human  capital flexibilities, such as student loan repayment and childcare services,  is an important step toward tailoring these approaches to meet identified  needs.  For example, agencies can explore opportunities to offer  recruitment bonuses and retention allowances, skill-based pay, and flex  time/flexiplace schedules that will enhance their employees’ ability to  balance their work and personal lives.  Educating agency managers about  available workforce restructuring tools, such as targeted early retirements  or targeted buyout authorities, can also be an important step to realigning  an agency’s workforce in light of mission needs and/or to correct skills  imbalances.
When determining which approaches are appropriate to use, agencies  should seek stakeholder input from human capital professionals, agency  managers, and employees and employee unions.  As managers are provided  authorities to manage human capital, they need to be held accountable for  using these authorities in a manner that is fair for employees across the  agency.
A number of agencies across the federal government have made a business case  for additional human capital flexibilities.  Lessons learned during a demonstration  project at the Department of Agriculture are currently under consideration for  broader applicability in the area of hiring flexibilities.
Beginning in 1990, the Department of Agriculture conducted a demonstration project  in the Forest Service and the Agriculture Research Service to test a streamlined job application process that allows interviewing officials to consider all "quality" applicants who meet minimum qualification standards, as opposed to considering only the top three candidates.  The first evaluation of the project showed that both the number of candidates per job announcement and the hiring speed increased; the results led Congress to make this authority permanent for these two divisions of Agriculture in October 1998.
section_title: Results-Oriented Organizational Cultures
subsections: section_title: Empowerment and Inclusiveness
paragraphs: Concepts: As in many cases in the human capital area, how you do  something is as important as what you do.  The involvement of employees  both directly and through employee organizations will be crucial to  success.  Involving employees in the planning process helps to develop  agency goals and objectives that incorporate insight about operations from  a front-line perspective.  Including employees can also serve to increase  employees’ understanding and acceptance of organizational goals and  objectives and improve motivation and morale.
In addition to considering employee input, leading organizations we  studied create a set of mission-related program guidelines within which  managers operate, and give their managers extensive authority to pursue  organizational goals.  They seek to ensure that internal processes provide  managers with the authority and flexibility they need to contribute to the  organization’s mission.  Allowing managers to bring their judgment to bear  in meeting their responsibilities, rather than having them merely comply  with rigid rules and standards, can lead to more effective operations.
Managers may also consider delegating authorities to front-line employees  who are closer to citizens, drawing from the strengths of employees at all  levels and of all backgrounds.  Providing managers the discretion to  delegate responsibilities to their employees can enable employees to look  at customer needs in an integrated way and can streamline processes.  As  program responsibilities are delegated to employees, agencies should make  reasonable efforts to ensure that conflicts of interest are minimized so that  the integrity of the program is maintained.
Organizations that promote and achieve a diverse workplace can attract  and retain high-quality employees and increase customer loyalty.  For  public organizations, this also translates into effective delivery of essential  services to communities with diverse needs.  Leading organizations  understand that they must support their employees in learning how to  effectively interact with and manage people in a diverse work place.  They  recognize the impact that diverse clients will have upon the success or  failure of an organization.  In an effort to foster an environment that is  responsive to the needs of diverse groups of employees, these  organizations identify opportunities to train managers in techniques that  create a work environment that maximizes the ability of all employees to  fully contribute to the organization’s mission.  They also identify  opportunities for resolving workplace disputes fairly and efficiently and  work to ensure that they create a workplace free of discrimination and in  which employees do not fear or experience retaliation or reprisal for  reporting waste, fraud, and abuse or for engaging in activities protected by  antidiscrimination statutes.
Steps for Progressing: Our work has shown that leading organizations  commonly sought their employees’ input on a periodic basis and explicitly  addressed and used that input to adjust their human capital approaches.   The organizations collected feedback using employee satisfaction surveys,  convening focus groups or employee advisory councils, and/or including  employees on task forces.  Another way managers can obtain feedback is  through the use of upward feedback, which one organization we studied  used to assess both the individual manager’s and team performance.
A high-performing agency also maintains an inclusive workplace in which  perceptions of unfairness are minimized and workplace disputes are  resolved by fair and efficient means.  In an effort to find a more effective  method for resolving workplace disputes, federal agencies have been  expanding their alternative dispute resolution programs.  One approach  used to deliver alternative dispute resolution services has been the creation  of ombudsmen offices to provide an informal option to deal pragmatically  with conflicts and other organizational climate issues.  An ombudsman  not only works to resolve disputes, but is also in a position to alert  management to systemic problems and thereby help correct  organizationwide issues and develop strategies for preventing and  managing conflict.  To complement investments in alternative dispute  resolution programs, organizations we studied also invested in training  efforts aimed at preventing disputes and equipping employees and  managers with skills to resolve disputes themselves.
Organizations we studied reported that they involved unions and  incorporated their input into proposals before finalizing decisions.   Engaging employee unions in major changes such as redesigning work  processes, changing work rules, or developing new job descriptions can  help achieve consensus on the planned changes, avoid misunderstandings,  speed implementation, and more expeditiously resolve problems that  occur.
Overall, our work suggests that leading organizations take the following  steps to foster an environment that empowers and involves employees  (many of these points are discussed in further detail under other Critical  Success Factors):  Demonstrate top leadership commitment to management reform  Engage employee unions  Train employees to enhance their knowledge, skills, and abilities  Use employee teams to help accomplish agency missions  Involve employees in planning and sharing performance information  Delegate authority to front-line employees.
As suggested above, agencies are taking different steps to create cultures that  empower employees, are inclusive of different work styles, and resolve workplace  disputes effectively.  The National Institutes of Health (NIH) Office of the  Ombudsman is an integral part of the agency's strategy to create a fair, equitable, and nondiscriminatory workplace.
The Office of the Ombudsman at NIH has served the NIH community since 1999.  In  addition to helping resolve commonly recognized workforce conflicts like discrimination, the ombudsman office serves as a complement to the agency's formal dispute resolution process on issues not related to discrimination, such as disputes over credit for authorship and intellectual property rights arising from scientific research.  The office assists in conflict intervention, conflict prevention, and internal education on ways to manage individual and group conflict.  NIH officials said that the office has helped to resolve and prevent disputes to such a degree that the two offices that handle formal workplace disputes, the Office of Intramural Research and the Office of Equal Opportunity, have seen a drop in their caseloads since the office was established.
section_title: Unit and Individual Performance Linked to Organizational Goals
paragraphs: Concepts: Shifting the orientation of individual performance expectations  and accountability systems from an adherence to process and the  completion of activities to a greater focus on contributions to results will  require a cultural transformation in most federal agencies.  One way to  embed a results-orientation is to align individual employee performance  expectations with agency goals so that individuals understand the  connection between their daily activities and their organization’s success.  High-performing organizations have recognized that a key element of a  fully successful performance management system is to create a “line of  sight” that shows how individual responsibilities can contribute to  organizational goals. As a first step, these organizations align their top  leadership’s performance expectations with organizational goals and then  cascade performance expectations to lower organizational levels.
Steps for Progressing: At the most senior level, one way to encourage  accountability within an organization is through the use of executive  performance agreements.  Our work has shown that agencies have  benefited from their use of results-oriented performance agreements for  political and senior career executives.  Although each agency developed  and implemented performance agreements that reflected its specific  organizational priorities, structures, and cultures, the performance  agreements met the following characteristics.  They  strengthened alignment of results-oriented goals with daily operations  fostered collaboration across organization boundaries  enhanced opportunities to discuss and routinely use performance  information to make program improvements  provided a results-oriented basis for individual accountability, and  maintained continuity of program goals during leadership transitions.
Governmentwide, agencies are to place increased emphasis on holding  senior executives accountable for organizational goals.  OPM amended  regulations that change the way agencies evaluate the members of the  Senior Executive Service (SES).   While agencies will need to tailor their  performance management systems to their unique organizational  requirements and climates, they nonetheless are to hold executives  accountable for results; appraise executive performance on those results  balanced against other dimensions, including customer satisfaction and  employee perspective; and use those results as the basis for performance  awards and other personnel decisions.  Agencies were to implement the  new policies for the SES appraisal cycles that began in 2001.
High-performing organizations design and implement performance  management systems that further cascade accountability for results to  managers and front-line employees.  These systems define individual  accountability by setting expectations so staff understand how their daily  activities contribute to results-oriented programmatic goals. A well- managed system facilitates communication during the year so that staff  receive constructive feedback about organizational and individual  performance. At the end of the year, appraisal systems provide ratings and  feedback that meaningfully differentiate among performers.
To promote teamwork and enhance internal cooperation, organizations we  studied encourage the use of cross-functional or matrixed teams for  achieving strategic goals and objectives and commonly attempt to develop  pay and incentive programs to foster such efforts. High-performing  organizations balance their pay and incentive programs to encourage both  individual and team-based contributions to achieving results.
One tool available to agencies for aligning individual employee expectations with  agency goals is the executive performance agreement.  The Veterans Health  Administration (VHA) has used performance agreements between career executives  and the Under Secretary for Health since 1996.  For staff at lower levels,  agreements are being cascaded to varying extents.
VHA serves the medical needs of veterans by providing primary and specialized care  at hundreds of service delivery locations that are grouped into Veterans Integrated  Service Networks (VISN), designed to coordinate the activities of hospitals, clinics,  nursing homes, and other facilities within a given geographic area.  The head of each  VISN, the director, is responsible for fulfilling an individual annual performance  agreement.  The performance agreement consists of three parts:  1. “core competencies” that define the management behaviors directors are expected  to exhibit, such as interpersonal effectiveness and technical competency;  2. priority areas for VHA as an organization, such as patient safety; and  3. health care performance goals that gauge each VISN's progress towards meeting  VHA’s mission with specific targets that establish achievement levels necessary to  receive a performance rating of "fully successful" or “exceptional.”
VHA has a standardized approach to monitoring VISN directors’ progress during the  year that consists of formal reporting of progress towards the health-care related  goals and areas of special interest included in their agreements, which is then  followed by meetings to discuss performance.  To evaluate the performance of VISN  directors at the end of each fiscal year, VHA uses both quantitative and qualitative  performance information to contribute to its judgment when making evaluation  decisions.  Although VHA has not evaluated the discrete contributions performance  agreements have made to its performance, VHA indicated that including  corresponding goals in the performance agreements of VISN directors contributed to  improvement in those key organizational goals.
section_title: Appendix A: Related GAO Products
subsections: section_title: General Human Capital Reports
paragraphs: Managing Human Capital in the Government Workplace, delivered by the  Honorable David M. Walker, Comptroller General of the United States at  the JFK School of Government, Harvard University on November 9, 2001.
Human Capital: Taking Steps to Meet Current and Emerging Human  Capital Challenges. GAO-01-965T.  Washington, D.C.: July 17, 2001.
The Performance Conference: Managing for Results, delivered by The  Honorable David M. Walker, Comptroller General of the United States,  sponsored by National Academy of Public Administration (NAPA), on June  12, 2001.
Managing For Results: Federal Managers’ Views on Key Management  Issues Vary Widely Across Agencies.  GAO-01-592.  Washington, D.C.: May  25, 2001.
Government Challenges in the 21st Century, delivered by The Honorable  David M. Walker, Comptroller General of the United States, at the National  Press Club, Washington, D.C., on April 23, 2001.
Human Capital and Knowledge Management: Connecting People to  Information, delivered by The Honorable David M. Walker, Comptroller  General of the United States, April 12, 2001 Major Management Challenges and Program Risks: A Governmentwide  Perspective.  GAO-01-241.  Washington, D.C.: January 2001.
High Risk Series: An Update.  GAO-01-263.  Washington, D.C.: January  2001.
High Risks and Major Challenges, delivered by The Honorable David M.  Walker, Comptroller General of the United States, at the Association of  Government Accountants Federal Leadership Conference, on January 25,  2001.
GAO’s 2001 Performance and Accountability and High-Risk Series Press  Briefing Talking Points, presented by Comptroller General David M.  Walker, Washington, D.C., on January 17, 2001.
Human Capital: A Self-Assessment Checklist for Agency Leaders.   GAO/OCG-00-14G.  Washington, D.C.: September 2000.
Human Capital: Managing Human Capital in the 21st Century.  GAO/T- GGD-00-77.  Washington, D.C.: March 9, 2000.
Human Capital: Key Principles From Nine Private Sector  Organizations. GAO/GGD-00-28. Washington, D.C.: January 31, 2000.
Management Reform: Elements of Successful Improvement Initiatives.  GAO/ T-GGD-00-26.  Washington, D.C.: October 15, 1999.
The Excepted Service: A Research Profile.  GAO/GGD-97-72.  Washington,  D.C.: May 1997.
Executive Guide: Effectively Implementing the Government Performance  and Results Act.  GAO/GGD-96-118.  Washington, D.C.: June 1996.
Transforming The Civil Service: Building The Workforce Of The Future.  GAO/GGD-96-35.  Washington, D.C.: December 20 1995.
section_title: Commitment to Human Capital Management
paragraphs: Human Capital: Attracting and Retaining a High-Quality Information  Technology Workforce.  GAO-02-113T.  Washington, D.C.: October 4, 2001.
Small Business Administration: Steps Taken to Better Manage Its  Human Capital, but More Needs to Be Done.  GAO/T-GGD/AIMD-00-256.   Washington, D.C.: July 20, 2000.
Senior Executive Service: Retirement Trends Underscore the Importance  of Succession Planning.  GAO/GGD-00-113BR.  Washington, D.C.: May 12,  2000.
Medicare: 21st Century Challenges Prompt Fresh Thinking About  Program’s Administrative Structure.  GAO/T-HEHS-00-108.  Washington,  D.C.: May 4, 2000.
Human Capital: Using Incentives to Motivate and Reward High  Performance.  GAO/T-GGD-00-118.  Washington, D.C.: May 2, 2000.
Human Capital: Strategic Approach Should Guide DOD Civilian  Workforce Management. GAO/T-GGD/NSIAD-00-120.  Washington, D.C.:  March 9, 2000.
Management Reform: Using the Results Act and Quality Management to  Improve Federal Performance.  GAO/T-GGD-99-151.  Washington, D.C.:  July 29, 1999.
section_title: Role of the Human Capital Function
paragraphs: Management Reform: Agencies’ Initial Efforts to Restructure Personnel  Operations.  GAO/GGD-98-93.  Washington, D.C.: July 13, 1998.
section_title: Integration and Alignment
paragraphs: Small Business Administration: Current Structure Presents Challenges  for Service Delivery.  GAO-02-17.  Washington, D.C.: October 26, 2001.
Human Capital: Attracting and Retaining a High-Quality Information  Technology Workforce.  GAO-02-113T.  Washington, D.C.: October 4, 2001.
Single-Family Housing: Better Strategic Human Capital Management  Needed at HUD’s Homeownership Centers.  GAO-01-590.  Washington,  D.C.: July 26, 2001.
Human Capital: Implementing an Effective Workforce Strategy Would  Help EPA to Achieve Its Strategic Goals.  GAO-01-812.  Washington, D.C.:  July 2001.
Managing For Results: Human Capital Management Discussions in  Fiscal Year 2001 Performance Plans.  GAO-01-236.  Washington, D.C.:  April 24, 2001.
IRS Telephone Assistance: Opportunities to Improve Human Capital  Management.  GAO-01-144.  Washington, D.C.: January 30, 2001.
Managing For Results: Emerging Benefits From Selected Agencies’ Use of  Performance Agreements.  GAO-01-115.  Washington, D.C.: October 30,  2000.
Customer Service: Human Capital Management at Selected Public and  Private Call Centers.  GAO/GGD-00-161.  Washington, D.C.: August 22,  2000.
Human Capital: Design, Implementation, and Evaluation of Training at  Selected Agencies.  GAO/T-GGD-00-131.  Washington, D.C.: May 18, 2000.
Tax Administration: IRS’ Implementation of the Restructuring Act’s  Personnel Flexibility Provisions.  GAO/GGD-00-81.  Washington, D.C.:  April 28, 2000.
Human Capital: Strategic Approach Should Guide DOD Civilian  Workforce Management.  GAO/T-GGD/NSIAD-00-120.  Washington, D.C.:  March 9, 2000.
SSA Customer Service: Broad Service Delivery Plan Needed to Address  Future Challenges.  GAO/T-HEHS/AIMD-00-75.  Washington, D.C.:  February 10, 2000.
Federal Workforce: Payroll and Human Capital Changes During  Downsizing.  GAO/GGD-99-57.  Washington, D.C.: August 13, 1999.
Management Reform: Using the Results Act and Quality Management to  Improve Federal Performance.  GAO/T-GGD-99-151.  Washington, D.C.:  July 29, 1999.
Performance Management: Aligning Employee Performance With Agency  Goals at Six Results Act Pilots.  GAO/GGD-98-162.  Washington, D.C.:  September 4, 1998.
Managing For Results: Experiences Abroad Suggest Insights for Federal  Management Reforms.  GAO/GGD-95-120.  Washington, D.C.: May 2, 1995.
section_title: Data-Driven Human Capital Decisions
paragraphs: Overseas Presence: More Work Needed on Embassy Rightsizing.  GAO-02- 143.  Washington, D.C.: November 27, 2001.
HUD Management: Progress Made on Management Reforms, but  Challenges Remain.  GAO-02-45.  Washington, D.C.: October 31, 2001.
Human Capital: Attracting and Retaining a High-Quality Information  Technology Workforce.  GAO-02-113T.  Washington, D.C.: October 4, 2001.
Single-Family Housing: Better Strategic Human Capital Management  Needed at HUD’s Homeownership Centers.  GAO-01-590.  Washington,  D.C.: July 26, 2001.
Human Capital: Implementing an Effective Workforce Strategy Would  Help EPA to Achieve Its Strategic Goals.  GAO-01-812.  Washington, D.C.:  July 2001.
Human Capital: Taking Steps to Meet Current and Emerging Human  Capital Challenges.  GAO-010-965T.  Washington, D.C.: July 17, 2001.
Federal Employee Retirements: Expected Increase Over the Next 5 Years  Illustrates Need for Workforce Planning.  GAO-01-509.  Washington, D.C.:  April 27, 2001.
IRS Telephone Assistance: Opportunities to Improve Human Capital  Management.  GAO-01-144.  Washington, D.C.: January 30, 2001.
Office of Workers’ Compensation Programs: Goals and Monitoring Are  Needed to Further Improve Customer Communications.  GAO-01-72T.   Washington, D.C.: October 3, 2000.
Customer Service: Human Capital Management at Selected Public and  Private Call Centers.  GAO/GGD-00-161.  Washington, D.C.: August 22,  2000.
Information Technology: Selected Agencies’ Use of Commercial Off-the- Shelf Software for Human Resources Functions.  GAO/AIMD-00-270.   Washington, D.C.: July 31, 2000.
Small Business Administration: Steps Taken to Better Manage Its  Human Capital, but More Needs to Be Done.  GAO/T-GGD/AIMD-00-256.   Washington, D.C.: July 20, 2000.
Human Capital: Design, Implementation, and Evaluation of Training at  Selected Agencies.  T-GAO/GGD-00-131.  Washington, D.C.: May 18, 2000.
Veterans Benefits Administration: Problems and Challenges Facing  Disability Claims Processing.  GAO/T-HEHS/AIMD-00-146.  Washington,  D.C.: May 18, 2000.
Tax Administration: IRS’ Implementation of the Restructuring Act’s  Personnel Flexibility Provisions. GAO/ GGD-00-81.  Washington, D.C.:  April 28, 2000.
Human Capital: Strategic Approach Should Guide DOD Civilian  Workforce Management. GAO/T-GGD/NSIAD-00-120.  Washington, D.C.:  March 9, 2000.
SSA Customer Service: Broad Service Delivery Plan Needed to Address  Future Challenges.  GAO/T-HEHS/AIMD-00-75.  Washington, D.C.:  February 10, 2000.
Managing For Results: Challenges Agencies Face in Producing Credible  Performance Information.  GAO/GGD-00-52.  Washington, D.C.: February  4, 2000.
Equal Employment Opportunity: The Postal Service Needs to Better  Ensure the Quality of EEO Complaint Data.  GAO/GGD-99-167.   Washington, D.C.: September 28, 1999.
Federal Workforce: Payroll and Human Capital Changes During  Downsizing.  GAO/GGD-99-57.  Washington, D.C.: August 13, 1999.
Management Reform: Using the Results Act and Quality Management to  Improve Federal Performance.  GAO/T-GGD-99-151.  Washington, D.C.:  July 29, 1999.
IRS Customer Service: Management Strategy Shows Promise But Could  Be Improved.  GAO/GGD-99-88.  Washington, D.C.: April 30, 1999.
Managing For Results: Experiences Abroad Suggest Insights for Federal  Management Reforms.  GAO/GGD-95-120.  Washington, D.C.: May 2, 1995.
section_title: Targeted Investments in People
paragraphs: HUD Management: Progress Made on Management Reforms, but  Challenges Remain.  GAO-02-45.  Washington, D.C.: October 31 2001.
Human Capital: Attracting and Retaining a High-Quality Information  Technology Workforce.  GAO-02-113T.  Washington, D.C.: October 4, 2001.
Securities And Exchange Commission: Human Capital Challenges  Require Management Attention.  GAO-01-947.  Washington, D.C.:  September 17, 2001.
Single-Family Housing: Better Strategic Human Capital Management  Needed at HUD’s Homeownership Centers.  GAO-01-590.  Washington,  D.C.: July 26, 2001.
Federal Employee Retirements: Expected Increase Over the Next 5 Years  Illustrates Need for Workforce Planning.  GAO-01-509.  Washington, D.C.:  April 27, 2001.
Managing For Results: Human Capital Management Discussions in  Fiscal Year 2001 Performance Plans.  GAO-01-236.  Washington, D.C.:  April 24, 2001.
Customer Service: Human Capital Management at Selected Public and  Private Call Centers.  GAO/GGD-00-161.  Washington, D.C.: August 22,  2000.
Small Business Administration: Steps Taken to Better Manage Its  Human Capital, but More Needs to Be Done.  GAO/T-GGD/AIMD-00-256.   Washington, D.C.: July 20, 2000.
Human Capital: Design, Implementation, and Evaluation of Training at  Selected Agencies.  GAO/T-GGD-00-131.  Washington, D.C.: May 18, 2000.
Senior Executive Service: Retirement Trends Underscore the Importance  of Succession Planning.  GAO/GGD-00-113BR.  Washington, D.C.: May 12,  2000.
Medicare: 21st Century Challenges Prompt Fresh Thinking About  Program’s Administrative Structure.  GAO/T-HEHS-00-108.  Washington,  D.C.: May 4, 2000.
Human Capital: Using Incentives to Motivate and Reward High  Performance. GAO/T-GGD-00-118.  Washington, D.C.: May 2, 2000.
Tax Administration: IRS’ Implementation of the Restructuring Act’s  Personnel Flexibility Provisions. GAO/GGD-00-81.  Washington, D.C.:  April 28, 2000.
SSA Customer Service: Broad Service Delivery Plan Needed to Address  Future Challenges.  GAO/T-HEHS/AIMD-00-75.  Washington, D.C.:  February 10, 2000.
Managing For Results: Experiences Abroad Suggest Insights for Federal  Management Reforms.  GAO/GGD-95-120.  Washington, D.C.: May 2, 1995.
section_title: Human Capital Approaches Tailored to Meet Organizational Needs
paragraphs: Human Capital: Attracting and Retaining a High-Quality Information  Technology Workforce.  GAO-02-113T.  Washington, D.C.: October 4, 2001.
Securities And Exchange Commission: Human Capital Challenges  Require Management Attention.  GAO-01-947.  Washington, D.C.:  September 17, 2001.
Customer Service: Human Capital Management at Selected Public and  Private Call Centers.  GAO/GGD-00-161.  Washington, D.C.: August 22,  2000.
Human Capital: Using Incentives to Motivate and Reward High  Performance.  GAO/T-GGD-00-118.  Washington, D.C.: May 2, 2000.
Tax Administration: IRS’ Implementation of the Restructuring Act’s  Personnel Flexibility Provisions. GAO/GGD-00-81.  Washington, D.C.:  April 28, 2000.
Human Capital: Strategic Approach Should Guide DOD Civilian  Workforce Management.  GAO/T-GGD/NSIAD-00-120.  Washington, D.C.:  March 9, 2000.
section_title: Empowerment and Inclusiveness
paragraphs: Human Capital: Practices That Empowered and Involved Employees.   GAO-01-1070.  Washington, D.C.: September 14, 2001.
Human Capital: The Role of Ombudsmen in Dispute Resolution.  GAO- 01-466.  Washington, D.C.: April 2001.
Senior Executive Service: Diversity Increased in the Past Decade.  GAO- 01-377.  Washington, D.C.: March 16, 2001.
Customer Service: Human Capital Management at Selected Public and  Private Call Centers.  GAO/GGD-00-161.  Washington, D.C.: August 22,  2000.
Senior Executive Service: Retirement Trends Underscore the Importance  of Succession Planning.  GAO/GGD-00-113BR.  Washington, D.C.: May 12,  2000.
Human Capital: Strategic Approach Should Guide DOD Civilian  Workforce Management.  GAO/T-GGD/NSIAD-00-120.  Washington, D.C.:  March 9, 2000.
Equal Employment Opportunity: The Postal Service Needs to Better  Ensure the Quality of EEO Complaint Data.  GAO/GGD-99-167.   Washington, D.C.: September 28, 1999.
Alternative Dispute Resolution: Employers’ Experiences With ADR in the  Workplace.  GAO/GGD-97-157.  Washington, D.C.: August 12, 1997.
section_title: Unit and Individual Performance Linked to Organizational Goals
paragraphs: HUD Management: Progress Made on Management Reforms, but  Challenges Remain.  GAO-02-45.  Washington, D.C.: October 31, 2001.
Single-Family Housing: Better Strategic Human Capital Management  Needed at HUD’s Homeownership Centers.  GAO-01-590.  Washington,  D.C.: July 26, 2001.
IRS Modernization: Continued Improvement in Management Capability  Needed to Support Long-Term Transformation.  GAO-01-700T.   Washington, D.C.: May 8 2001.
IRS Modernization: IRS Should Enhance Its Performance Management  System.  GAO-01-234.  Washington, D.C.: February 23, 2001.
Managing For Results: Emerging Benefits From Selected Agencies’ Use of  Performance Agreements.  GAO-01-115.  Washington, D.C.: October 30,  2000.
Customer Service: Human Capital Management at Selected Public and  Private Call Centers.  GAO/GGD-00-161.  Washington, D.C.: August 22,  2000.
Medicare: 21st Century Challenges Prompt Fresh Thinking About  Program’s Administrative Structure.  GAO/T-HEHS-00-108.  Washington,  D.C.: May 4, 2000.
Tax Administration: IRS’ Implementation of the Restructuring Act’s  Personnel Flexibility Provisions.  GAO/GGD-00-81.  Washington, D.C.:  April 28, 2000.
Human Capital: Strategic Approach Should Guide DOD Civilian  Workforce Management.  GAO/T-GGD/NSIAD-00-120.  Washington, D.C.:  March 9, 2000.
Managing For Results: Challenges Agencies Face in Producing Credible  Performance Information.  GAO/GGD-00-52.  Washington, D.C.: February  4, 2000.
IRS Customer Service: Management Strategy Shows Promise But Could  Be Improved.  GAO/GGD-99-88.  Washington, D.C.: April 30, 1999.
Performance Management: Aligning Employee Performance With Agency  Goals at Six Results Act Pilots.  GAO/GGD-98-162.  Washington, D.C.:  September 4, 1998.
Managing For Results: Experiences Abroad Suggest Insights for Federal  Management Reforms.  GAO/GGD-95-120.  Washington, D.C.: May 2, 1995.
section_title: GAO’s Mission
paragraphs: The General Accounting Office, the investigative arm of Congress, exists to  support Congress in meeting its constitutional responsibilities and to help improve  the performance and accountability of the federal government for the American  people. GAO examines the use of public funds; evaluates federal programs and  policies; and provides analyses, recommendations, and other assistance to help  Congress make informed oversight, policy, and funding decisions. GAO’s  commitment to good government is reflected in its core values of accountability,  integrity, and reliability.
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section_title: Public Affairs