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United States General Accounting Office: 
GAO: 

Exposure Draft: 

March 2002: 

A Model of Strategic Human Capital Management: 

GAO-02-373SP: 

Comptroller General of the United States: 
United States General Accounting Office: 
Washington, D.C. 20548: 

March 15, 2002: 

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. 

Signed by: 

David M. Walker: 
Comptroller General Of the United States: 

[End of section] 

Preface: 

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.[Footnote 1] 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.[Footnote 2] 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:[Footnote 3] 

* Leadership, continuity, and succession planning; 

*Strategic human capital planning and organizational alignment; 

* Acquiring and developing staffs whose size, skills, and deployment 
meet agency needs; 

* 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.[Footnote 4] 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. 

A Model Of Strategic Human Capital Management: A New Tool For Agency 
Leaders: 

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.[Footnote 5] 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. 

Critical Success Factors Table: 

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. 

Figure 1: [Refer to PDF for image: illustration] 

4 Human Capital Cornerstones: Leadership; 8 Critical Success Factors: 
* Commitment to Human Capital Management; 
* Role of the Human Capital Function. 

4 Human Capital Cornerstones: Strategic Human Capital Planning; 8 
Critical Success Factors: 
* Integration and Alignment; 
* Data-Driven Human Capital Decisions. 

4 Human Capital Cornerstones: Acquiring, Developing, and Retaining 
Talent; 8 Critical Success Factors: 
* Targeted Investments in People; 
* Human Capital Approaches Tailored to Meet Organizational Needs. 

4 Human Capital Cornerstones: Results-Oriented Organizational 
Cultures; 8 Critical Success Factors: 
* Empowerment and Inclusiveness; 
* Unit and Individual Performance Linked to Organizational Goals. 

[End of figure] 

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). 

Figure 2: The Three Levels: 

[Refer to PDF for image: illustration] 

Level 1: 
The approach to human capital is largely compliance-based; the agency 
has yet to realize the value of managing human capital strategically 
to achieve results; existing human capital approaches have yet to be 
assessed in light of current and emerging agency needs. 

Level 2: 
The agency recognizes that people are a critical asset that must be 
managed strategically; new human capital policies, programs, and 
practices are being designed and implemented to support mission 
accomplishment. 

Level 3: 
The agency's human capital approaches contribute to improved agency 
performance; human capital considerations are fully integrated into 
strategic planning and day-to-day operations; the agency is 
continuously seeking ways to further improve its "people management" 
to achieve results. 

[End of figure] 

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. 

Figure: Human Capital Cornerstone: 

[Refer to PDF for image: illustration] 

Leadership: 

Critical Success Factor: Commitment to Human Capital Management; Level 
1: 
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. 
Level 2: 
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. 
Level 3: 
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. 

Critical Success Factor: Role of the Human Capital Function; 
Level 1: 
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. 
Level 2: 
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. 
Level 3: 
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 fulfill 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. 

Strategic Human Capital Planning: 

Critical Success Factor: Integration and Alignment; 
Level 1: 
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. 
Level 2: 
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. 
Level 3: 
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. 

Critical Success Factor: Data-Driven Human Capital Decisions; 
Level 1: 
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. 
Level 2: 
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. 
Level 3: 
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. 

Acquiring, Developing, and Retaining Talent: 

Critical Success Factor: Targeted Investments in People; 
Level 1: 
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. 
Level 2: 
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. 
Level 3: 
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. 

Critical Success Factor: Human Capital Approaches Tailored to Meet 
Organizational Needs; 
Level 1: 
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. 
Level 2: 
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. 
Level 3: 
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. 

Results-Oriented Organizational Cultures: 

Critical Success Factor: Empowerment and Inclusiveness; 
Level 1: 
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. 
Level 2: 
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. 
Level 3: 
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. 

Critical Success Factor: Unit and Individual Performance Linked to 
Organizational Goals; 
Level 1: 
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. 
Level 2: 
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. 
Level 3: 
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. 

[End of figure] 

Pointers: 

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. 

Leadership: 

Commitment to Human Capital Management: 

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.[Footnote 6] 
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.[Footnote 7] 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. 

Figure: [Refer to PDF for image: illustration] 

Leadership: Commitment to Human Capital Management: 

Case Illustration: U.S. Mint (Mint). 

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. 

[End of figure] 

Role of the Human Capital Function: 

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.[Footnote 8] 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.[Footnote 9] 

Figure: [Refer to PDF for image: illustration] 

Leadership: Role of the Human Capital Function: 

Case Illustration: Nuclear Regulatory Commission (NRC): 

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. 

[End of figure] 

Strategic Human Capital Planning: 

Integration and Alignment: 

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. 
[Footnote 10] 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. 

Figure: [Refer to PDF for image: illustration] 

Strategic Human Capital Planning: Integration and Alignment; 

Case Illustration: Internal Revenue Service (IRS): 

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.[A] 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. 

[A] See U.S. General Accounting Office, Human Capital: Taking Steps to 
Meet Current and Emerging Human Capital Challenges GAO-01-965T 
(Washington, D.C.: July 17, 2001); U.S. General Accounting Office, Tax 
Administration: IRS' Implementation of the Restructuring Act's 
Personnel Flexibility Provisions GGD-00-81 (Washington, D.C.: April 
2000); U.S. General Accounting Office, IRS Modernization: IRS Should 
Enhance Its Performance Management System GAO-01-234 (Washington, 
D.C.: February 2001); and U.S. General Accounting Office, IRS 
Modernization: Continued Improvement in Management Capability Needed 
to Support Long-Term Transformation GAO-01-700T (Washington, D.C.: May 
8 2001). 

[End of figure] 

Data-Driven Human Capital Decisions: 

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. 

Figure: [Refer to PDF for image: illustration] 

Strategic Human Capital Planning: Data-Driven Human Capital Decisions; 

Case Illustration: Air Force Materiel Command (AFMC): 

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.[A] 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. 

[A] See The Air Force Materiel Command's Work Force Shaping Study: 
Sustaining the Sword (April 14, 2000). 

[End of figure] 

Acquiring, Developing, And Retaining Talent: 

Targeted Investments in People: 

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. 

Figure: [Refer to PDF for image: illustration] 

Acquiring, Developing, and Retaining Talent: Targeted Investments in 
People; 

Case Illustration: State Department (State): 

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.[A] 

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. 

[A] U.S. General Accounting Office, Human Capital: Meeting the 
Governmentwide High-Risk Challenge GAO-01-357T (Washington, D.C.: 
February 1, 2001). 

[End of figure] 

Human Capital Approaches Tailored to Meet Organizational Needs: 

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. 

Figure: [Refer to PDF for image: illustration] 

Acquiring, Developing, and Retaining Talent: Human Capital Approaches 
Tailored to Meet Organizational Needs; 

Case Illustration: Department of Agriculture (Agriculture): 

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. 

[End of figure] 

Results-Oriented Organizational Cultures: 

Empowerment and Inclusiveness: 

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.[Footnote 11] 

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.[Footnote 12] 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.[Footnote 13] 

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.[Footnote 14] 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.[Footnote 15] 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.[Footnote 16] 

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. 

Figure: [Refer to PDF for image: illustration] 

Results-Oriented Organizational Cultures: Empowerment and 
Inclusiveness; 

Case Illustration: National Institutes of Health (NIH): 

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. 

[End of figure] 

Unit and Individual Performance Linked to Organizational Goals: 

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.[Footnote 17] 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.[Footnote 
18] 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.[Footnote 
19] High-performing organizations balance their pay and incentive 
programs to encourage both individual and team-based contributions to 
achieving results. 

Figure: [Refer to PDF for image: illustration] 

Results-Oriented Organizational Cultures: Unit and Individual 
Performance Linked to Organizational Goals; 

Case Illustration: The Veterans Health Administration (VHA): 

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.[A] 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. 

[A] GAO-01-115. 

[End of figure] 

[End of section] 

Appendix A: Related GAO Products: 

GAO Reports Corresponding to the Eight Critical Success Factors in the 
Model of Strategic Human Capital Management: 

Note: Some reports are listed under more than one critical success 
factor. 

General Human Capital Reports: 

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. [hyperlink, http://www.gao.gov/products/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. [hyperlink, 
http://www.gao.gov/products/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. [hyperlink, http://www.gao.gov/products/GAO-01-241]. 
Washington, D.C.: January 2001. 

High Risk Series: An Update. [hyperlink, 
http://www.gao.gov/products/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. 
[hyperlink, http://www.gao.gov/products/GAO/OCG-00-14G]. Washington, 
D.C.: September 2000. 

Human Capital: Managing Human Capital in the 21st Century. [hyperlink, 
http://www.gao.gov/products/GAO/TGGD-00-77. Washington, D.C.: March 9, 
2000. 

Human Capital: Key Principles From Nine Private Sector Organizations. 
[hyperlink, http://www.gao.gov/products/GAO/GGD-00-28]. Washington, 
D.C.: January 31, 2000. 

Management Reform: Elements of Successful Improvement Initiatives. 
[hyperlink, http://www.gao.gov/products/GAO/T-GGD-00-26]. Washington, 
D.C.: October 15, 1999. 

The Excepted Service: A Research Profile. [hyperlink, 
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Executive Guide: Effectively Implementing the Government Performance 
and Results Act. [hyperlink, 
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1996. 

Transforming The Civil Service: Building The Workforce Of The Future. 
[hyperlink, http://www.gao.gov/products/GAO/GGD-96-35. Washington, 
D.C.: December 20 1995. 

Commitment to Human Capital Management: 

Human Capital: Attracting and Retaining a High-Quality Information 
Technology Workforce. [hyperlink, 
http://www.gao.gov/products/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. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD/AIMD-00-256]. Washington, D.C.: 
July 20, 2000. 

Senior Executive Service: Retirement Trends Underscore the Importance 
of Succession Planning. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-113BR]. Washington, D.C.: May 
12, 2000. 

Medicare: 21st Century Challenges Prompt Fresh Thinking About 
Program’s Administrative Structure. [hyperlink, 
http://www.gao.gov/products/GAO/T-HEHS-00-108]. Washington, D.C.: May 
4, 2000. 

Human Capital: Using Incentives to Motivate and Reward High 
Performance. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD-00-118]. Washington, D.C.: May 
2, 2000. 

Human Capital: Strategic Approach Should Guide DOD Civilian Workforce 
Management. [hyperlink, 
http://www.gao.gov/products/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. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD-99-151]. Washington, D.C.: July 
29, 1999. 

Role of the Human Capital Function: 

Management Reform: Agencies’ Initial Efforts to Restructure Personnel 
Operations. [hyperlink, http://www.gao.gov/products/GAO/GGD-98-93]. 
Washington, D.C.: July 13, 1998. 

Integration and Alignment: 

Small Business Administration: Current Structure Presents Challenges 
for Service Delivery. [hyperlink, 
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2001. 

Human Capital: Attracting and Retaining a High-Quality Information 
Technology Workforce. [hyperlink, 
http://www.gao.gov/products/GAO-02-113T]. Washington, D.C.: October 4, 
2001. 

Single-Family Housing: Better Strategic Human Capital Management 
Needed at HUD’s Homeownership Centers. [hyperlink, 
http://www.gao.gov/products/GAO-01-590. Washington, D.C.: July 26, 
2001. 

Human Capital: Implementing an Effective Workforce Strategy Would Help 
EPA to Achieve Its Strategic Goals. [hyperlink, 
http://www.gao.gov/products/GAO-01-812]. Washington, D.C.: July 2001. 

Managing For Results: Human Capital Management Discussions in Fiscal 
Year 2001 Performance Plans. [hyperlink, 
http://www.gao.gov/products/GAO-01-236]. Washington, D.C.: April 24, 
2001. 

IRS Telephone Assistance: Opportunities to Improve Human Capital 
Management. [hyperlink, http://www.gao.gov/products/GAO-01-144]. 
Washington, D.C.: January 30, 2001. 

Managing For Results: Emerging Benefits From Selected Agencies’ Use of 
Performance Agreements. [hyperlink, 
http://www.gao.gov/products/GAO-01-115]. Washington, D.C.: October 30, 
2000. 

Customer Service: Human Capital Management at Selected Public and 
Private Call Centers. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-161]. Washington, D.C.: August 
22, 2000. 

Human Capital: Design, Implementation, and Evaluation of Training at 
Selected Agencies. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD-00-131]. Washington, D.C.: May 
18, 2000. 

Tax Administration: IRS’ Implementation of the Restructuring Act’s 
Personnel Flexibility Provisions. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-81]. Washington, D.C.: April 
28, 2000. 

Human Capital: Strategic Approach Should Guide DOD Civilian Workforce 
Management. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD/NSIAD-00-120]. Washington, D.C.: 
March 9, 2000. 

SSA Customer Service: Broad Service Delivery Plan Needed to Address 
Future Challenges. [hyperlink, 
http://www.gao.gov/products/GAO/T-HEHS/AIMD-00-75]. Washington, D.C.: 
February 10, 2000. 

Federal Workforce: Payroll and Human Capital Changes During 
Downsizing. [hyperlink, http://www.gao.gov/products/GAO/GGD-99-57]. 
Washington, D.C.: August 13, 1999. 

Management Reform: Using the Results Act and Quality Management to 
Improve Federal Performance. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD-99-151]. Washington, D.C.: July 
29, 1999. 

Performance Management: Aligning Employee Performance With Agency 
Goals at Six Results Act Pilots. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-98-162]. Washington, D.C.: 
September 4, 1998. 

Managing For Results: Experiences Abroad Suggest Insights for Federal 
Management Reforms. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-95-120]. Washington, D.C.: May 2, 
1995. 

Data-Driven Human Capital Decisions: 

Overseas Presence: More Work Needed on Embassy Rightsizing. 
[hyperlink, http://www.gao.gov/products/GAO-02-143]. Washington, D.C.: 
November 27, 2001. HUD Management: Progress Made on Management 
Reforms, but Challenges Remain. [hyperlink, 
http://www.gao.gov/products/GAO-02-45]. Washington, D.C.: October 31, 
2001. 

Human Capital: Attracting and Retaining a High-Quality Information 
Technology Workforce. [hyperlink, 
http://www.gao.gov/products/GAO-02-113T]. Washington, D.C.: October 4, 
2001. 

Single-Family Housing: Better Strategic Human Capital Management 
Needed at HUD’s Homeownership Centers. [hyperlink, 
http://www.gao.gov/products/GAO-01-590]. Washington, D.C.: July 26, 
2001. 

Human Capital: Implementing an Effective Workforce Strategy Would Help 
EPA to Achieve Its Strategic Goals. [hyperlink, 
http://www.gao.gov/products/GAO-01-812]. Washington, D.C.: July 2001. 

Human Capital: Taking Steps to Meet Current and Emerging Human Capital 
Challenges. [hyperlink, http://www.gao.gov/products/GAO-010-965T]. 
Washington, D.C.: July 17, 2001. 

Federal Employee Retirements: Expected Increase Over the Next 5 Years 
Illustrates Need for Workforce Planning. [hyperlink, 
http://www.gao.gov/products/GAO-01-509]. Washington, D.C.: April 27, 
2001. 

IRS Telephone Assistance: Opportunities to Improve Human Capital 
Management. [hyperlink, http://www.gao.gov/products/GAO-01-144]. 
Washington, D.C.: January 30, 2001. 

Office of Workers’ Compensation Programs: Goals and Monitoring Are 
Needed to Further Improve Customer Communications. [hyperlink, 
http://www.gao.gov/products/GAO-01-72T]. Washington, D.C.: October 3, 
2000. 

Customer Service: Human Capital Management at Selected Public and 
Private Call Centers. [hyperlink, 
http://www.gao.gov/products/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. [hyperlink, 
http://www.gao.gov/products/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. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD/AIMD-00-256]. Washington, D.C.: 
July 20, 2000. 

Human Capital: Design, Implementation, and Evaluation of Training at 
Selected Agencies. T-[hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-131]. Washington, D.C.: May 18, 
2000. 

Veterans Benefits Administration: Problems and Challenges Facing 
Disability Claims Processing. [hyperlink, 
http://www.gao.gov/products/GAO/T-HEHS/AIMD-00-146]. Washington, D.C.: 
May 18, 2000. 

Tax Administration: IRS’ Implementation of the Restructuring Act’s 
Personnel Flexibility Provisions. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-81]. Washington, D.C.: April 
28, 2000. 

Human Capital: Strategic Approach Should Guide DOD Civilian Workforce 
Management. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD/NSIAD-00-120]. Washington, D.C.: 
March 9, 2000. 

SSA Customer Service: Broad Service Delivery Plan Needed to Address 
Future Challenges. [hyperlink, 
http://www.gao.gov/products/GAO/T-HEHS/AIMD-00-75]. Washington, D.C.: 
February 10, 2000. 

Managing For Results: Challenges Agencies Face in Producing Credible 
Performance Information. [hyperlink, 
http://www.gao.gov/products/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. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-99-167]. Washington, D.C.: 
September 28, 1999. 

Federal Workforce: Payroll and Human Capital Changes During 
Downsizing. [hyperlink, http://www.gao.gov/products/GAO/GGD-99-57]. 
Washington, D.C.: August 13, 1999. 

Management Reform: Using the Results Act and Quality Management to 
Improve Federal Performance. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD-99-151]. Washington, D.C.: July 
29, 1999. 

IRS Customer Service: Management Strategy Shows Promise But Could Be 
Improved. [hyperlink, http://www.gao.gov/products/GAO/GGD-99-88]. 
Washington, D.C.: April 30, 1999. 

Managing For Results: Experiences Abroad Suggest Insights for Federal 
Management Reforms. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-95-120]. Washington, D.C.: May 2, 
1995. 

Targeted Investments in People: 

HUD Management: Progress Made on Management Reforms, but Challenges 
Remain. [hyperlink, http://www.gao.gov/products/GAO-02-45]. 
Washington, D.C.: October 31 2001. 

Human Capital: Attracting and Retaining a High-Quality Information 
Technology Workforce. [hyperlink, 
http://www.gao.gov/products/GAO-02-113T]. Washington, D.C.: October 4, 
2001. 

Securities And Exchange Commission: Human Capital Challenges Require 
Management Attention. [hyperlink, 
http://www.gao.gov/products/GAO-01-947]. Washington, D.C.: September 
17, 2001. 

Single-Family Housing: Better Strategic Human Capital Management 
Needed at HUD’s Homeownership Centers. [hyperlink, 
http://www.gao.gov/products/GAO-01-590]. Washington, D.C.: July 26, 
2001. 

Federal Employee Retirements: Expected Increase Over the Next 5 Years 
Illustrates Need for Workforce Planning. [hyperlink, 
http://www.gao.gov/products/GAO-01-509]. Washington, D.C.: April 27, 
2001. 

Managing For Results: Human Capital Management Discussions in Fiscal 
Year 2001 Performance Plans. [hyperlink, 
http://www.gao.gov/products/GAO-01-236]. Washington, D.C.: April 24, 
2001. 

Customer Service: Human Capital Management at Selected Public and 
Private Call Centers. [hyperlink, 
http://www.gao.gov/products/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. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD/AIMD-00-256]. Washington, D.C.: 
July 20, 2000. 

Human Capital: Design, Implementation, and Evaluation of Training at 
Selected Agencies. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD-00-131]. Washington, D.C.: May 
18, 2000. 

Senior Executive Service: Retirement Trends Underscore the Importance 
of Succession Planning. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-113BR]. Washington, D.C.: May 
12, 2000. 

Medicare: 21st Century Challenges Prompt Fresh Thinking About Program’
s Administrative Structure. [hyperlink, 
http://www.gao.gov/products/GAO/T-HEHS-00-108]. Washington, D.C.: May 
4, 2000. 

Human Capital: Using Incentives to Motivate and Reward High 
Performance. [hyperlink, http://www.gao.gov/products/GAO/T-GGD-00-
118]. Washington, D.C.: May 2, 2000. 

Tax Administration: IRS’ Implementation of the Restructuring Act’s 
Personnel Flexibility Provisions. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-81]. Washington, D.C.: April 
28, 2000. 

SSA Customer Service: Broad Service Delivery Plan Needed to Address 
Future Challenges. [hyperlink, 
http://www.gao.gov/products/GAO/T-HEHS/AIMD-00-75]. Washington, D.C.: 
February 10, 2000. 

Managing For Results: Experiences Abroad Suggest Insights for Federal 
Management Reforms. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-95-120]. Washington, D.C.: May 2, 
1995. 

Human Capital Approaches Tailored to Meet Organizational Needs: 

Human Capital: Attracting and Retaining a High-Quality Information 
Technology Workforce. [hyperlink, 
http://www.gao.gov/products/GAO-02-113T]. Washington, D.C.: October 4, 
2001. 

Securities And Exchange Commission: Human Capital Challenges Require 
Management Attention. [hyperlink, 
http://www.gao.gov/products/GAO-01-947]. Washington, D.C.: September 
17, 2001. 

Customer Service: Human Capital Management at Selected Public and 
Private Call Centers. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-161]. Washington, D.C.: August 
22, 2000. 

Human Capital: Using Incentives to Motivate and Reward High 
Performance. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD-00-118]. Washington, D.C.: May 
2, 2000. 

Tax Administration: IRS’ Implementation of the Restructuring Act’s 
Personnel Flexibility Provisions. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-81]. Washington, D.C.: April 
28, 2000. 

Human Capital: Strategic Approach Should Guide DOD Civilian Workforce 
Management. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD/NSIAD-00-120]. Washington, D.C.: 
March 9, 2000. 

Empowerment and Inclusiveness: 

Human Capital: Practices That Empowered and Involved Employees. 
[hyperlink, http://www.gao.gov/products/GAO-01-1070]. Washington, 
D.C.: September 14, 2001. 

Human Capital: The Role of Ombudsmen in Dispute Resolution. 
[hyperlink, http://www.gao.gov/products/GAO-01-466]. Washington, D.C.: 
April 2001. 

Senior Executive Service: Diversity Increased in the Past Decade. 
[hyperlink, http://www.gao.gov/products/GAO-01-377]. Washington, D.C.: 
March 16, 2001. 

Customer Service: Human Capital Management at Selected Public and 
Private Call Centers. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-161]. Washington, D.C.: August 
22, 2000. 

Senior Executive Service: Retirement Trends Underscore the Importance 
of Succession Planning. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-113BR]. Washington, D.C.: May 
12, 2000. 

Human Capital: Strategic Approach Should Guide DOD Civilian Workforce 
Management. [hyperlink, 
http://www.gao.gov/products/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. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-99-167]. Washington, D.C.: 
September 28, 1999. 

Alternative Dispute Resolution: Employers’ Experiences With ADR in the 
Workplace. [hyperlink, http://www.gao.gov/products/GAO/GGD-97-157]. 
Washington, D.C.: August 12, 1997. 

Unit and Individual Performance Linked to Organizational Goals: 

HUD Management: Progress Made on Management Reforms, but Challenges 
Remain. [hyperlink, http://www.gao.gov/products/GAO-02-45]. 
Washington, D.C.: October 31, 2001. 

Single-Family Housing: Better Strategic Human Capital Management 
Needed at HUD’s Homeownership Centers. [hyperlink, 
http://www.gao.gov/products/GAO-01-590]. Washington, D.C.: July 26, 
2001. 

IRS Modernization: Continued Improvement in Management Capability 
Needed to Support Long-Term Transformation. [hyperlink, 
http://www.gao.gov/products/GAO-01-700T]. Washington, D.C.: May 8 2001. 

IRS Modernization: IRS Should Enhance Its Performance Management 
System. [hyperlink, http://www.gao.gov/products/GAO-01-234]. 
Washington, D.C.: February 23, 2001. 

Managing For Results: Emerging Benefits From Selected Agencies’ Use of 
Performance Agreements. [hyperlink, 
http://www.gao.gov/products/GAO-01-115]. Washington, D.C.: October 30, 
2000. 

Customer Service: Human Capital Management at Selected Public and 
Private Call Centers. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-161]. Washington, D.C.: August 
22, 2000. 

Medicare: 21st Century Challenges Prompt Fresh Thinking About 
Program’s Administrative Structure. [hyperlink, 
http://www.gao.gov/products/GAO/T-HEHS-00-108]. Washington, D.C.: May 
4, 2000. 

Tax Administration: IRS’ Implementation of the Restructuring Act’s 
Personnel Flexibility Provisions. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-81]. Washington, D.C.: April 
28, 2000. 

Human Capital: Strategic Approach Should Guide DOD Civilian Workforce 
Management. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD/NSIAD-00-120]. Washington, D.C.: 
March 9, 2000. 

Managing For Results: Challenges Agencies Face in Producing Credible 
Performance Information. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-52]. Washington, D.C.: February 
4, 2000. 

IRS Customer Service: Management Strategy Shows Promise But Could Be 
Improved. [hyperlink, http://www.gao.gov/products/GAO/GGD-99-88]. 
Washington, D.C.: April 30, 1999. 

Performance Management: Aligning Employee Performance With Agency 
Goals at Six Results Act Pilots. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-98-162]. Washington, D.C.: 
September 4, 1998. 

Managing For Results: Experiences Abroad Suggest Insights for Federal 
Management Reforms. [hyperlink, 
http://www.gao.gov/products/GAO/GGD-95-120]. Washington, D.C.: May 2, 
1995. 

[End of section] 

Footnotes: 

1. See U.S. General Accounting Office, High-Risk Series: An Update, 
[hyperlink, http://www.gao.gov/products/GAO-01-263] (Washington, D.C.: 
Jan. 2001). 

2. U.S. General Accounting Office, Performance and Accountability 
Series-—Major Management Challenges and Program Risks: A 
Governmentwide Perspective, [hyperlink, 
http://www.gao.gov/products/GAO-01-241] (Washington, D.C.: Jan. 2001). 
In addition, see the accompanying 21 reports (numbered GAO-01-242 
through GAO-01-262) on specific agencies. 

3. [hyperlink, http://www.gao.gov/products/GAO-01-263]. 

4. See U.S. General Accounting Office, Human Capital: Taking Steps to 
Meet Current and Emerging Human Capital Challenges, [hyperlink, 
http://www.gao.gov/products/GAO-01-965T] (Washington D.C.: July 17, 
2001). 

5. For more information on GAO’s efforts, see [hyperlink, 
http://www.gao.gov/products/GAO-01-965T]. 

6. U.S. General Accounting Office, Management Reform: Elements of 
Successful Improvement Initiatives. [hyperlink, 
http://www.gao.gov/products/GAO/T-GGD-00-26] (Washington, D.C.: 
October 15 1999). 

7. For example see U.S. General Accounting Office, Human Capital: 
Implementing an Effective Workforce Strategy Would Help EPA to Achieve 
Its Strategic Goals [hyperlink, 
http://www.gao.gov/products/GAO-01-812], July 31, 2001; U.S. General 
Accounting Office, HUD Management: Progress Made on Management 
Reforms, But Challenges Remain [hyperlink, 
http://www.gao.gov/products/GAO-02-45], October 31, 2001; U.S. General 
Accounting Office, Medicare: 21st Century Challenges Prompt Fresh 
Thinking About Program’s Administrative Structure (T-HEHS-00-108, May 
4, 2000); and U.S. General Accounting Office, Major Management 
Challenges and Program Risks: Department of Energy [hyperlink, 
http://www.gao.gov/products/GAO-01-246], January 1, 2001. 

8. U.S. General Accounting Office, Human Capital: Key Principles From 
Nine Private Sector Organizations. [hyperlink, 
http://www.gao.gov/products/GGD-00-28] (Washington D.C.: January 2000). 

9. U.S. General Accounting Office, Management Reform: Agencies’ 
Initial Efforts to Restructure Personnel Operations [hyperlink, 
http://www.gao.gov/products/GAO/GGD-98-93] (Washington, D.C.: July 
1998). 

10. Executive Office of the President, Office of Management and 
Budget, Circular No. A-11 Part 2: Preparation and Submission of 
Strategic Plans, Annual Performance Plans, and Annual Program 
Performance Reports (Washington, D.C.: July 2001). 

11. U.S. General Accounting Office, Human Capital: Practices that 
Empowered and Involved Employees [hyperlink, 
http://www.gao.gov/products/GAO-01-1070] (Washington, D.C.: September 
2001). 

12. U.S. General Accounting Office, Managing for Results: Experiences 
Abroad Suggest Insights for Federal Management Reforms [hyperlink, 
http://www.gao.gov/products/GGD-95-120] Washington, D.C.: May 2, 1995). 

13. U.S. General Accounting Office, Human Capital: The Role of 
Ombudsmen in Dispute Resolution [hyperlink, 
http://www.gao.gov/products/GAO-01-466] (Washington, D.C.: April 2001). 

14. U.S. General Accounting Office, Human Capital: Key Principles from 
Nine Private Sector Organizations [hyperlink, 
http://www.gao.gov/products/GAO/GGD-00-28] (Washington, D.C.: January 
2000). 

15. [hyperlink, http://www.gao.gov/products/GAO-01-466]. 

16. U.S. General Accounting Office, Alternative Dispute Resolution: 
Employers’ Experiences with ADR in the Workplace [hyperlink, 
http://www.gao.gov/products/GAO/GGD-97-157] (Washington, D.C.: August 
1997). 

17. U.S. General Accounting Office, Managing for Results: Emerging 
Benefits From Selected Agencies’ Use of Performance Agreements 
[hyperlink, http://www.gao.gov/products/GAO-01-115] (Washington, D.C.: 
October 2000). 

18. Information on employee perspective is to focus on such things as 
how executives lead and motivate employees, address job and training 
needs, and provide a healthy working environment. 

19. [hyperlink, http://www.gao.gov/products/GAO/GGD-00-28]. 

[End of section] 

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