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Human Capital Assessment and Accountability Framework (HCAAF) Breakout Session # 210 Name: Mike Flentje, Kristin Porter, Frank McNally Date: Monday, July 19 Time: 2:30 – 3:45 1 1 The Presenters Mike Flentje – Public Sector Director, Human Capital Services Leader Leads the PwC Public Sector Practice „Human Capital‟ Talent Network and serves as Project Director for the VA Acquisition Intern Program Engagement. Kristin Porter – Public Sector Manager Serves as Project Manager for the VA Acquisition Intern Program Engagement Frank McNally – Public Sector Senior Associate Former Federal Contracting Officer and Instructor/Subject Matter Expert for the VA Acquisition Intern Program Engagement 2 AN INTRODUCTION TO HCAAF 3 HCAAF System Relationships Leadership & Knowledge Management • Leadership Succession Management • Change Management • Integrity and Inspiring Employee Commitment • Continuous Learning • Knowledge Management Strategic Alignment Results-Oriented • Human Capital Planning Performance Culture • Workforce Planning • Communication • Human Capital Best Practices • Performance Appraisal and Knowledge Sharing • Pay for Performance • Human Resources as Strategic • Diversity Management Partner • Labor/Management Relations Accountability Talent Management • Assessment of Progress and • Recruitment Results • Retention 4 • Compliance The Evolution of HCAAF 2001 2002 2004-2005 2006 2008 • OPM requires • OMB, OPM, • Title 5 USC, • HCAAF and • Title 5 CFR, agencies to and GAO Part 1103 the HCAAF Part 250 establish HRM develop outlines Practitioners‟ implements accountability HCAAF responsibilities Guide are CHCO Act and systems (Exec. • Chief Human of OPM referenced in HCAAF Order 13197) Capital • HCAAF proposed • PMA identifies Officers Act of revised to regulations Strategic 2002 issued define five • New questions Management • Federal human capital added to of Human Human Capital management Federal Capital as a Survey is systems and Human Capital priority launched metrics to be Survey • Human Capital included in Scorecard Federal released Departments‟ Strategic Capital Plans 5 The President‟s Management Agenda Strategic Management Strategic Management of Human Capital of Human Capital Competitive • Transformation of how the Federal Sourcing government employs, deploys, develops and evaluates the workforce Improved Financial Performance • Focuses on results, not processes Expanded • Places the right people in the right jobs at Electronic Government the right time to most effectively perform the work of the organization Budget and Performance Integration 6 Why a Human Capital Initiative? 7 What HCAAF Means for You New Requirements for Federal Agencies • Annual Human Capital Management Report • Human Capital Strategic Plan • Human Capital Accountability Report • Quarterly OMB scoring of efforts to implement the President‟s Management Agenda Human Capital Initiative • Invitation to participate in the Federal Human Capital Survey (FHCS) every two years 8 Discussion: What are the most pressing human capital issues facing your organization today? 9 HCAAF Tools for Federal Agencies • HCAAF Resource Center • HCAAF Practitioners‟ Guide • OPM Federal Human Capital Survey 10 What is the HCAAF Practitioners‟ Guide? • Outlines the 3-step process of human capital management for Federal agencies • Establishes and defines five human capital systems that constitute Federal government human capital management • Fulfills OPM‟s mandate to design systems and set standards and metrics for assessing human capital management in the Federal government • Supports requirement for agencies to submit an annual Strategic Human Capital Plan and Agency Human Capital Accountability Report 11 HCAAF System Relationships Leadership & Knowledge Management • Leadership Succession Management • Change Management • Integrity and Inspiring Employee Commitment • Continuous Learning • Knowledge Management Strategic Alignment Results-Oriented • Human Capital Planning Performance Culture • Workforce Planning • Communication • Human Capital Best Practices • Performance Appraisal and Knowledge Sharing • Pay for Performance • Human Resources as Strategic • Diversity Management Partner • Labor/Management Relations Accountability Talent Management • Assessment of Progress and • Recruitment Results • Retention 12 • Compliance System 1: Strategic Alignment Component Explanation Definition • Alignment of human capital management strategies with agency mission, goals, and objectives Standard • Human capital management strategies are aligned with mission, goals, and organizational objectives and integrated into its strategic plans, performance plans, and budgets Critical Success • Human Capital Planning Factors • Workforce Planning • Human Capital Best Practices and Knowledge Sharing • Human Resources as Strategic Partner Metrics • Documented evidence of a current agency human capital plan that includes human capital goals, objectives and strategies; a workforce plan; and performance measures and milestones 13 System 2: Leadership and Knowledge Management Component Explanation Definition • Ensure continuity of leadership • Identify and address potential gaps in effective leadership • Implement and maintain programs that capture organizational knowledge and promote learning Standard • Effectively manage people and ensure continuity of leadership • Sustain a learning environment that drives continuous performance improvement • Provide a means to share critical knowledge across the organization Critical Success • Leadership Succession Management • Change Management Factors • Integrity and Inspiring Employee Commitment • Continuous Learning • Knowledge Management Metrics • Competency Gaps Closed for Management and Leadership • Leadership and Knowledge Management Index Slide • Merit-Based Execution of the Leadership and Knowledge Management system 14 Federal Human Capital Survey Results: Leadership and Knowledge Management Results from the Leadership and Knowledge Management Index 2008 FHCS Item 2008 % Change in % Positive Positive 2006-2008 2004-2006 I have trust and confidence in my supervisor. 64% 0 0 Overall, how good a job do you feel is being done by your immediate supervisor/team leader? 66% 0 +1 My workload is reasonable. 60% +1 0 Managers/supervisors/team leaders work well with employees of different backgrounds. 65% +1 +1 I have a high level of respect for my organization‟s senior leaders. 52% +3 +2 In my organization, leaders generate high levels of motivation and commitment in the workforce. 40% +2 +3 Managers communicate the goals and priorities of the organization. 60% +2 0 Managers review and evaluate the organization‟s progress toward meeting its goals and objectives. 58% +2 +1 Employees are protected from health and safety hazards on the job. 76% +1 +1 My organization has prepared employees for potential security threats. 74% +1 0 How satisfied are you with the information you receive from management on what‟s going on in your 48% +1 +2 organization? 15 How satisfied are you with the policies and practices of your senior leaders? 42% +1 +2 System 3: Results-Oriented Performance Culture Component Explanation Definition Promotes a diverse, high-performing workforce by implementing and maintaining effective performance management systems and awards programs Standard Agency has a diverse, results-oriented, high-performing workforce and a performance management system that differentiates between high and low levels of performance and links individual/team/unit performance to organization goals and desired results effectively Critical Success • Communication • Performance Appraisal Factors • Pay for Performance • Diversity Management • Labor/Management Relations Metrics • SES Performance/Organizational Performance Relationship • Workforce Performance Appraisals Aligned to Mission, Goals and Outcomes • Results-Oriented Performance Culture Index • Merit-Based Execution of Slide Results-Oriented Performance Culture system the 16 Federal Human Capital Survey Results: Results-Oriented Performance Culture Results from the Results-Oriented Performance Culture Index 2008 FHCS Item 2008 % Change in % Positive Positive 2006-2008 2004-2006 The people I work with cooperate to get the job done. 84% +1 -1 My supervisor supports my need to balance work and other life issues. 75% -3 -4 I know how my work relates to the agency‟s goals and priorities. 84% +1 +1 Physical conditions (for example, noise level, temperature, lighting, cleanliness in the workplace) 67% 0 0 allow employees to perform their jobs well. Promotions in my work unit are based on merit. 35% +1 +1 In my work unit, steps are taken to deal with a poor performer who cannot or will not improve. 30% +1 +3 Employees have a feeling of personal empowerment with respect to work processes. 44% +2 +1 Creativity and innovation are rewarded. 40% +1 +4 Pay raises depend on how well employees perform their jobs. 26% +4 0 In my work unit, differences in performance are recognized in a meaningful way. 31% +1 +2 My performance appraisal is a fair reflection of my performance. 63% -1 -3 Discussions with my supervisor/team leader about my performance are worthwhile. 56% 0 -2 Slide 17 How satisfied are you with the recognition you receive for doing a good job? 50% +1 +1 System 4: Talent Management Component Explanation Definition • Addresses competency gaps, particularly in mission-critical positions • Implements and maintains programs to attract, acquire, develop, promote, and retain quality talent Standard • Agency has closed skills, knowledge, and competency gaps in mission- critical occupations Critical Success • Recruitment Factors • Retention Metrics • Competency Gaps Closed for Mission Critical Occupations • Talent Management Index • Job Satisfaction Index • of Merit-Based ExecutionSlide the Talent Management system 18 Federal Human Capital Survey Results: Talent Management Results from the Talent Management Index 2008 FHCS Item 2008 % Change in % Positive Positive 2006-2008 2004-2006 I am given a real opportunity to improve my skills in my organization. 64% +2 +1 The workforce has the job-relevant knowledge and skills necessary to accomplish organizational 74% 0 0 goals. My work unit is able to recruit people with the right skills. 45% +1 +1 My talents are used well in the workplace. 62% +1 0 Supervisors/team leaders in my work unit support employee development. 65% +1 0 My training needs are assessed. 53% +2 +2 19 How satisfied are you with the training you receive for your present job? 55% +1 0 System 5: Accountability Component Explanation Definition • Monitors and evaluates the results of human capital management policies, programs, and activities • Analyzes compliance with merit system principles and identifies opportunities for improvement Standard • Human capital management decisions are guided by a data-driven, results- oriented planning and accountability system • Results inform the development of human capital goals and objectives, in conjunction with the agency‟s strategic planning and performance budgets Critical Success • None identified Factors Metrics • Documented evidence of a Human Capital Accountability system that provides for annual assessment of agency human capital management progress and Slide results including compliance with relevant laws, rules, and regulations 20 A CLOSER LOOK AT TALENT MANAGEMENT 21 Talent Management: A Closer Look • The standard for success in talent management is to close competency gaps and make progress…it is not meant to happen overnight. • Talent Management‟s two Critical Success Factors promote the benefits of one another and help an organization eliminate gaps in skills, knowledge, and competencies • Required outcome metrics assess organization‟s targeted efforts and talent management capability, employee satisfaction, and organizational compliance with merit system principles. 22 Talent Management: Critical Success Factors Recruitment and retention are co-dependent; the success of one influences and affects the success of the other. To exemplify this: • An organization that is unable to recruit a diverse and qualified workforce will invariably experience difficulty retaining its employees. The lack of a strategic recruitment strategy will challenge the proper placement of new employees, increase dissatisfaction of current employees, and negatively impact workforce retention. 23 Talent Management: A Closer Look Results from the Talent Management Index 2008 FHCS Item 2008 % Change in % Positive Positive 2006-2008 2004-2006 I am given a real opportunity to improve my skills in my organization. 64% +2 +1 The workforce has the job-relevant knowledge and skills necessary to accomplish 74% 0 0 organizational goals. My work unit is able to recruit people with the right skills. RECRUITMENT 45% +1 +1 My talents are used well in the workplace. 62% +1 0 Supervisors/team leaders in my work unit support employee development. 65% +1 0 My training needs are assessed. 53% +2 +2 How satisfied are you with the training you receive for your present job? 55% +1 0 24 Talent Management: Required Metrics How will we know when we get there? Four Required Outcome Metrics help measure an organization‟s Talent Management System: 1. Competency Gaps Closed for Mission-Critical Occupations [Organization] This metric will prompt an organization to conduct a gap analysis to determine competency needs, which informs that organization‟s targeted recruitment efforts. Bottom Line: Know what you need before you go out and find it. 25 Talent Management: Required Metrics How will we know when we get there? Four Required Outcome Metrics help measure an organization‟s Talent Management System: 2. Questions from Annual Employee Survey about Organizational Capacity [Employee Perspective] Provides an organization with an employee-level assessment of whether the talent pool is appropriate to achieve mission goals. Bottom Line: Workforce is competent and confident in themselves and each other. 26 Talent Management: Required Metrics How will we know when we get there? Four Required Outcome Metrics help measure an organization‟s Talent Management System: 3. Questions from Annual Employee Survey about Employee Satisfaction [Employee Perspective] Allows an organization to determine the extent to which its employees are satisfied with their job. Bottom Line: Employees are satisfied with the important aspects of their job. 27 Talent Management: Required Metrics How will we know when we get there? Four Required Outcome Metrics help measure an organization‟s Talent Management System: 4. Merit-Based Execution of the Talent Management System [Merit System Compliance] Allows an organization to assess whether the tools it is using to manage talent are in compliance with merit system principles. Bottom Line: Talent Management System is fully compliant with laws, rules, and regulations. 28 Talent Management: Suggested Metrics How will we know when we get there? Five Suggested Metrics provide additional visibility: 6. Employee Turnover – statistics AND a reason for leaving 7. Employee Turnover during Probationary Period – what is the impact of the probationary period, and is the reason for leaving voluntary or involuntary? 8. Time to Hire – helps determine efficiency of the hiring process 9. Management Satisfaction with Hiring Process – not a “time to hire” metric, rather it assesses whether strategies achieve goals 10. Applicant Satisfaction with Hiring Process – do applicants have a favorable impression of the process? 29 Talent Management: In Summary What Does Success Look Like? When the Critical Success Factors are effectively implemented, an organization will see progress in Talent Management. Competency gaps are closed, resulting in a workforce capable of performance excellence Senior leaders and managers are involved in the strategic recruitment and retention initiatives and apply the necessary focus and resources to achieve related goals Recruitment results in a sufficient pipeline of qualified applicants Flexible compensation strategies are used in both recruiting and retention Quality of work/life programs are provided and address obstacles to recruitment and retention, putting the organization in position to be successful in managing talent 30 TALENT MANAGEMENT IN ACTION: VA‟S ACQUISITION INTERNSHIP SCHOOL 31 Talent Management in Action: VA‟s Acquisition Internship School The VA Acquisition Academy (VAAA) was launched in 2008 to improve the core competencies of VA‟s contracting and acquisition professionals and address growing shortages in the workforce. It is comprised of four schools: 1. Acquisition Internship School 2. FAC-C School 3. FAC-P/PM School 4. Acquisition Corps School 32 Talent Management in Action: VA‟s Acquisition Internship School The Acquisition Internship School recruits, trains, and develops VA‟s 1102 workforce to improve competency and address staffing shortages • Length: 3 years in residence • Curriculum: • Formal FAC-C Coursework • Informal courses provide a safe environment for exercise and analysis • Leadership, team building, project management, and mission service increase commitment to VA and improve retention • On-the-job Training: Participants are exposed to the work environment during periodic job rotations 33 Talent Management in Action: VA‟s Holistic Approach The Internship School uses a holistic curriculum approach to developing technical, interpersonal, and leadership skills through the following components: Instructor-led contracting officer FAC-C certification Formal Contracting Courses curriculum improves mission-critical contracting competency. Instructor-led classes focused on key leadership and Formal Leadership Courses business skills, improving ability and aptitude. Scenario-driven workshops reinforce knowledge obtained in Skill Building Workshops formal courses and improve organizational talent level. Facilitated on-the-job training at VA contracting offices Challenging Job Rotations provides real experience and contributes to workforce capability, performance excellence, and service. Activities designed to foster teamwork, personal Non-Classroom Components development, and appreciation for VA‟s mission improves employee perspective. 34 34 Talent Management in Action: The “Secret Sauce” of Experiential Adult Learning Non-Classroom Activities “Secret Sauce” Non-Classroom Let Me Try Job Rotations Activities and Skill-building Workshops reduce interns’ Show Me & time to Let Me Try Skill-Building Workshops competency Tell Me & Formal Contracting Formal Show Me Courses Leadership Courses Adult Learning Model = Tell Me Show Me Let Me Try 35 Talent Management in Action: Reduced Time to Competency Accelerated Learning Why it Works… • Accelerates the learning Trusted Business Advisor curve to be more productive more quickly • Translates theory, Competency Proficiency FAC-C Level III Certified fundamentals, and Contracting Professional concepts into practical application • Evolves from basic to complex acquisition Time strategies through VA Acquisition Intern Program consistent reinforcement Traditional Intern Program 36 SUMMARY 37 Benefits of Implementing HCAAF Enables agencies to transform the Federal workplace into high-performing arenas Helps employees understand and maximize their contributions to the agency mission Allows agencies to focus on the human capital management systems and practices that most impact their mission Provides measurable, observable agency and individual performance results Ensures continued trust in the government‟s ability to serve and protect 38 QUESTIONS? 39
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