The Changing Face of HR: Adapting to Organizational Change and Process

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1 The Changing Face of HR: Adapting to Organizational Change and Process Steve Nelson Director, Office of Policy and Evaluation U.S. Merit Systems Protection Board Eastern Region IPMA-HR Conference Saratoga Springs State Park May 14, 2007

2 The Changing Face of HR The Federal Human Capital Crisis ** Technological changes ** Political changes Strategic Management of HC - CHCO Role Using HR Resources Workforce Planning Succession Management How to be part of the solution Conclusion

3 The Federal Human Capital Crisis Crisis: A stage in a sequence of events at which the trend of all future events, especially for better or for worse, is determined; turning point. The Random House Dictionary

4 What is HR s Challenge? Cultural change (metamorphosis) of Human Resources Personnel Management Human Resources Human Capital Management Personnel Administration to Provide Greater Value

5 The Real Challenge in HR The problem for government is that it has lost much of the expertise to design the kind of recruitment, retention, and career development options that might attract a fair share of the top graduates. Thus, the place to increase government s competitive edge may well be in rebuilding its human resources offices, which have been decimated by a decade of downsizing. Paul C. Light in The New Public Service, Brookings Institution, 1999

6 HR Staff Reduction Occupation Sep 1992 Sep 2002 Change (%) Personnel Management Specialist, GS ,073 18, Personnel Clerk, GS ,144 3, Personnel Staffing Specialist, GS , Position Classification Specialist, GS , Employee Relations Specialist, GS , Labor Relations Specialist, GS , Employee Development Specialist, GS , EEO Specialist, GS ,479 2, Total 37,198 26, Source: OPM s Central Personnel Data File.

7 In the middle of difficulty lies opportunity. Albert Einstein

8 The Wind of Change - Technological Forces Internet egov initiatives HR Automation HR Consolidation

9 The Internet

10 e-gov Initiatives E-Gov Initiatives: Final Selections and Managing Partners Government to Citizen 1. USA Service 2. EZ Tax Filing 3. Online Access for Loans 4. Recreation One Stop 5. Eligibility Assistance Online Government to Government 1. e-vital (business case) 2. e-grants 3. Disaster Assistance and Crisis Response 4. Geospatial Information One Stop 5. Wireless Networks Managing Partner GSA TREAS DoEd DOI Labor Managing Partner SSA HHS FEMA DOI DOJ Government to Business 1. Federal Asset Sales 2. Online Rulemaking Management 3. Simplified and Unified Tax and Wage Reporting 4. Consolidated Health Informatics (business case) 5. Business Compliance One Stop 6. International Trade Process Streamlining Internal Effectiveness and Efficiency 1. e-training Managing Partner 2. Recruitment One Stop OPM 3. Enterprise HR Integration OPM 4. Integrated Acquisition OPM 5. e-records Management GSA 6. Enterprise Case NARA Management DOJ 7. HR Payroll Integration (Crosscutting Iniative: e-authentication, Managing Partner, GSA) Managing Partner GSA DOT Treas HHS SBA DOC OPM 14

11 HR Automation

12 The Wind of Change - Political Forces

13 Who is Moving the Cheese? David M. Walker, Comptroller General, GAO Identified Human Capital Management as a High Risk Area Senator George V. Voinovich (R-Ohio) Report to the President: The Crisis in Human Capital Introduced Human Capital Management Act of 2003 Kay Coles James, Former Director, OPM Introduced Human Capital Scorecard Accountability Framework

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16 President s Objectives if reform is to help the Federal Government adapt to a rapidl changing world, its primary objective must be to a government that is: - Citizen Centered - Results Oriented - Market Based. President George W. Bush July 11, 2001

17 Government-wide Initiatives Strategic Management of Human Capital Expanded Electronic Government Competitive Sourcing Budget and Performance Improved Financial Performance

18 Strategic Management of Human Capital Looming retirements; skill imbalances Reduce layers between citizens and decisionmakers; better align skills Greater flexibility to acquire and develop talent and leadership

19 Human Capital Management Organizational Design Workforce restructuring/competitive sourcing Leading/recommending change Workforce Planning Blended workforce/competitive sourcing Evolving Mission/Changing technology Projected turnover Strategic Recruitment Skill mix Diversity Workforce Development Skill/Competency development Leadership development/succession Planning Retention - Performance based pay Incentives

20 Competitive Sourcing Public-private competition improves business processes and reduces costs; generally save 20% or more Nearly half of Federal jobs perform tasks readily available in commercial marketplace Simplify procedures for competition and evaluation

21 Competitive Sourcing Through competition managers determine the most efficient source for providing specific services Public-private competition improves business processes and reduces costs; generally saves 20% or more Build an in-house most efficient organization (MEO) internally or outsource

22 Expanded Electronic Government Create easy-to-find single points of access to government services Provide high quality customer service Reduce reporting burden on businesses by sharing electronic information Automate internal processes to reduce costs Increase access for persons with disabilities

23 Executive Branch Management Scorecard Tool to measure progress toward achieving President s Management Agenda Standards for success in each initiative Summarize current status and progress Provide baseline as of September 30, 2001

24 President s Management Scorecard as of September 30, 2005 Agency Human Capital Comp. Sourcing Financial Mgmt E-Gov Budget/ Perform Integrate USDA It s so hard to be green Interior Labor It s so hard to be green SBA Soc Sec OPM NSF OMB

25 OPM s Human Capital Scorecard March 31, 2002 June 30, 2002 Sep 30, 2002 Strategic Alignment Align Human Capital Policies to support the accomplishments at the agency s mission vision, goals and strategies Strategic Competencies Recruit, hire, develop and retain employees with the strategic competencies for mission critical occupations Leadership Ensures leadership in the agency inspires, motivates, guides others towards goals; coaches, mentors, challenges staff; adapts leadership styles to various situations; models high standards of honesty, integrity, trust, openness, and respect for individuals by applying these values Performance Culture Create a culture that motivates employees for high performance, based on their contribution to the work of the organization, and common values while ensuring fairness in the workplace. Learning (Knowledge Management) Promote knowledge-sharing culture and a climate of openness; promote continuous learning and improvement.

26 OPM s Agency HR Accountability Scorecard March 31, 2002 June 30, 2002 Sep 30, 2002 Strategic Alignment Targeted competency gap reductions Staff posses needed competencies Employee performance is managed Employees understand how they contribute to mission HRM Program Effectiveness Retention rates Employee satisfaction Extent of training & development Diversity HR Operational Efficiency Accuracy/timeliness of actions HR information database Cost of HR services/ratio Legal Compliance Compliance veterans preference Management awareness of merit principles Findings on internal/external HRM HR Accountability System Identify & resolve problems Results of system implementation Recommendations for dealing with deficiencies Documentation of actions taken

27 Department of Homeland Security

28 DOD Proposal- NSPS

29 Chief Human Capital Officers Areas of Challenge in Strategic Human Capital Management Strategic HC planning and organizational alignment Leadership continuity and succession planning Acquiring and developing staff whose size, skills, and deployment meets agency needs Creating results oriented organizational culture

30 Human Capital Standards for Success Accountability Agency human capital decisions are guided by a data-driven results-oriented planning and accountability system. Source: U.S. Office of Personnel Management, Human Capital Assessment and Accountability Framework.

31 Using HR Resources Advice Consulting 10% Value Creation (80/20 Rule) Technical Analysis and Research 50% Transactional Activities 40%

32 Using HR Resources Advice Consulting 10% Automated Classification & Staffing Systems Integrated Personnel System Technical Analysis and Research 50% Transactional Activities 40%

33 Using HR Resources Value Creation (80/20 Rule) Advice Consulting 10% Technical Analysis and Research 50% Transactional Activities 40%

34 Debit Credit Gatekeepers Processors Post-Decision Involvement HR Focused Outputs Consultant/ Advisor Business Partner Pre-Decision Involvement Customer Focused Outcomes

35 Human Capital Management Strategy Development & Leadership Workforce Management Leadership Workforce Planning Position Management, Workforce Development, Needs Assessment Process Management Classification, Staffing, Training Transaction Processing Processing, Payroll, Benefits, Automation, Reports

36 Emerging HR Roles Business Partner Leader Change Agent HR Expert

37 Business Partner Knows Mission Understands business processes Understands organizational culture Understands nature of public service Recommends alternative solutions Is innovative and creative Thinks strategically Communicates well

38 Change Agent Designs and implements change process Uses consultation and negotiation skills Builds relationships on trust Works well in teams Uses coalition building skills Demonstrates problem solving skills Willing to take risks

39 Leader Takes risks Manages conflicts Demonstrates ability to make a decision Effectively manages resources Models ethical behavior Applies coaching, mentoring, and counseling skills to develop talent

40 We must become the change we want to see. Ghandi

41 Fundamental Transformation of HR Fundamental transformation from being strictly a support function involved in managing personnel processes and ensuring compliance with rules and regulations to designing and implementing human capital approaches to attain the agencies strategic goals.

42 How to be Part of the Solution

43 How to Get Line Managers Involved Scare them Educate them Present a compelling business case

44 The Context of Planning Activities Strategic Plan Strategic Workforce Plan Agency Core Business Skills Budget

45 Identifying Future Skill Needs Mission evolution Technological advances Demographic changes

46 Gap Analysis Identification of core mission areas Determination of what functions can be competitively sourced

47 Obtaining/Retaining Needed Skills Develop staff Recruit for needed skills Entry level Mid-level Full- performance level Use hiring flexibilities

48 Integrating Human Capital Approaches with Accomplishing the Agency Mission Chief Human Capital Officers Council Restructure human capital staff Change human capital competencies Automate Shared accountability

49 Do or do not. There is no try. Yoda

50 References General Accounting Office (GAO) Reports GAO/OCG-00-14G September 2000 GAO SF Mar. 15, 2002 GAO Apr. 1, 2003 GAO Dec. 6, 2002 OPM Reports Strategic Human Capital Management 1999 HRM Accountability December 1998

51 NAPA Reports References, Cont. A Guide for Effective Strategic Management of Human Resources Alternative Service Delivery: A Viable Strategy for Federal Government Human Resources Management Building Successful Organizations: A Guide to Strategic Workforce Planning Changes in HR Competencies since 1996: Implications for Federal HR Professionals IPMA Federal Section A Call to Action September 2000

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