	Leadership

The OPM 2004 FHCS results and OPM’s 2005 follow-up focus group  discussions suggest that information is not cascading effectively from top  leadership throughout the organization. Employee perceptions of senior level leadership were not as positive,  however. A similar pattern of OPM SES and OPM GS-level response  can be seen in Figure 1 for the percent of employees agreeing with the  statement “leaders generate high levels of motivation and commitment in  the workforce.”   OPM’s analysis of responses to this question by its  divisions and offices show that the Human Capital Leadership and Merit  System Accountability (HCLMSA) division had the lowest positive and  largest negative response of any division at about 28 percent and 51  percent respectively. Based on OPM’s May 2006 action plans, the agency is planning to  improve communication through such means as “visits to OPM field  locations, brown bag lunches with the Director, an email box where  employees can make suggestions on more efficient and effective ways of  doing business, Web Casts, and employee meetings.”  According to the  May 11, 2006 memo from OPM’s CHCO to Director Springer, OPM has  released several messages to employees regarding steps that it will be  taking to improve communications agencywide and to address each of the  specific critical issues within individual organizations of the agency. This division provides leadership to agencies in their  human capital transformation efforts. OPM’s ability to lead and oversee human capital management policy  changes that result from potential human capital reform legislation  could be affected by its internal capacity and ability to maintain an  effective leadership team, as well as, an effective workforce. Training. OPM Has Engaged in Workforce and Succession Planning, but Different Workforce Skills May Be Needed to Meet Future Needs

OPM’s workforce and succession planning efforts may be sufficient for  maintaining the organization’s current capacity, but OPM may need more  collaborative workforce skills to lead and implement human capital  reform. OPM’s HCO Structure Is Viewed as a Barrier to Meeting Customer Needs

CHCOs and human resource directors informed us that, while OPM’s HCO  structure is good in theory, it is often a barrier to obtaining timely  technical guidance. To collaborate and share information, CHCOs said that OPM could make  better use of the CHCO Council. If OPM is to successfully  lead reform, it will need to strategically use the partnerships it has  available to it, such as the CHCO Council and others, as well as develop a  culture of collaboration, information sharing, and working with customers  to understand what they will need from the agency. These practices, collectively with others we have  identified in prior work, create a “line of sight” showing how unit and  individual performance can contribute to overall organizational goals. OPM’s executive  performance contracts achieve this objective by making executives  accountable for OPM-wide goals. Require follow-up actions to address organizational priorities. Each associate director is  committed to “Implement  action plan to ensure OPM is rated in  the top 50% of agencies surveyed in the 2006 FHCS and the top five  agencies in the 2008 FHCS.”  To achieve this goal, each associate  director developed a FHCS action plan for their division to address  employee concerns identified in the 2004 FHCS and the follow-up  focus group discussions. OPM has plans to implement new  performance elements and standards for all OPM employees to support  the new agency Strategic and Operational Plan. If effectively  implemented, these actions should address many of the concerns raised by  focus group participants. To meet its  current and future challenge to lead human capital across government,  Director Springer has shown leadership commitment to its transformation  by initiating a number of action plans to address employee concerns. While the steps taken by OPM demonstrate progress in achieving its  transformation, it must continue on this path by closely monitoring and  communicating with its employees and customers, expanding its  workforce and succession planning efforts, and continuing to improve its  performance culture and accountability for results. Appendix I

	Federal Human Capital Survey, Focus Groups, and Action Plans

We used the Federal Human Capital Survey (FHCS) and summaries of the  Office of Personnel Management (OPM) focus groups to assess employee  views of OPM’s organizational capacity.
Why GAO Did This Study

General recognition exists of a need to continue to develop a governmentwide framework for human capital reform to enhance performance, ensure accountability and position the nation for the future. Potential governmentwide human capital reform and likely requirements that the Office of Personnel Management (OPM) assist, guide, and ultimately certify agencies' readiness to implement reforms, raise important questions about OPM's capacity to successfully fulfill its central role. This testimony addresses management challenges that could affect OPM's ability to lead governmentwide human capital reform efforts. To assess these challenges, GAO analyzed OPM's 2002 and 2004 Federal Human Capital Survey (FHCS) results, data from its 2005 follow-up focus group discussions, OPM's May 2006 action plans to address employee concerns, and OPM's associate directors' fiscal year 2006 executive performance contracts. GAO also conducted interviews with OPM senior officials and Chief Human Capital Officers (CHCO) and human resource directors from CHCO Council agencies. In commenting on a draft of this statement, the OPM Director said that OPM has addressed many of the challenges highlighted from the 2004 FHCS and achieved many meaningful and important results. GAO agrees and believes OPM should continue to build upon its progress to date.

What GAO Found

OPM has made commendable efforts towards transforming itself to being a more effective leader of governmentwide human capital reform. It can build upon that progress by addressing challenges that remain in the following areas: Leadership. OPM Federal Human Capital Survey responses and the fall 2005 follow-up focus group discussions suggests that information from OPM leadership does not cascade effectively throughout the organization and that many employees do not feel senior leaders generate a high level of motivation and commitment in the workforce. Agreement with leaders ability was lowest in one of OPM's key divisions--a unit vital to successful human capital reform. OPM is working to address employee concerns and improve perceptions of senior leaders. Talent and resources. To align talent and resources to support its reform role, OPM has made progress in assessing current workforce needs and developing leadership succession plans. However, OPM's workforce planning has not sufficiently identified future skills and competencies that may be necessary to fulfill its role in human capital reform. Customer focus, communication, and collaboration. OPM can improve its customer service to agencies and create more opportunities for dialogue. According to key officials in executive agencies, OPM guidance to agencies is not always clear and timely, OPM's human capital officer structure is often a barrier to efficient customer response, and greater opportunities exist to collaborate with agency leaders. OPM recognizes these shortcomings and has identified improvement actions to address. However, more can be done such as strategically using partnerships it has available to it, like the CHCO Council. Performance culture and accountability. OPM has made progress in creating a "line of sight" or alignment and accountability across Senior Executive Service (SES) expectations and organizational goals. It needs to build on this progress and effectively implement new performance standards for all employees to support the recently issued agency strategic and operational plan and ensure all employees receive the necessary training. To meet OPM's current and future challenge to lead governmentwide human capital reform, Director Springer has shown leadership commitment to OPM's transformation by initiating a number of action plans to address employee concerns. While the steps taken by OPM demonstrate progress in achieving its transformation, it must continue on this path by closely monitoring and communicating with its employees and customers, expanding its workforce and succession planning efforts, and continuing to create a "line of sight" throughout the organization.