As an innovation tool, labs are based on the idea that the competencies  needed for systematic innovation—such as intelligent risk-taking to  develop new services, products and processes—are not the same as  those required for daily operations. OPM Lab Activities Are Intended to Build Capacity for Innovation and Support Project- Based Problem Solving

Based on OPM documents, the innovation lab’s start-up costs totaled  approximately $1.1 million including facility upgrades and construction,  equipment, and training and other personnel costs. OPM’s Lab Is Similar in Mission and Design to Other Innovation Labs, but OPM Needs to Systematically Evaluate the Lab’s Performance

We identified a common set of challenges that can undermine  organizations’ efforts to use innovation labs and a set of prevalent  practices that the organizations employ to address these challenges and  support their labs’ success and sustainability. OPM documents state that the goal of OPM’s innovation lab is to provide  federal workers with 21st century skills in design-led innovation, and the  intended purpose of the lab is to provide a physical space for project- based problem solving. Starting in March 2013, a year after the lab opened, OPM lab staff began  work on a program evaluation framework to more systematically measure  the lab’s progress toward meeting their overarching goals. The evaluation framework being developed by OPM does not include  interim performance targets or measures. To demonstrate that the lab is operating as  originally intended, evaluation plans will be needed for specific immersion  projects that can help track cost-benefits and performance improvement  outcomes. Studies show that information sharing and interorganizational networks  can be a powerful driver supporting innovation. While labs provide a physical space where innovators can convene,  federal agencies are not fully aware of their growing community. As of  June 2013, OPM was unaware that other agencies such as Census,  HUD, and NASA were pursuing a lab approach to promote innovation. OPM’s lab staff also  reported that they host weekly trainings in the lab on best practices,  including webinars about measuring the success of enterprise-level  design efforts and the value of visualizing information. In addition, OPM has shared best  practices with other public sector design labs across the globe by  participating in a number of conferences. Recommendations for Executive Action

We recommend that the Director of OPM take the following actions to  help substantiate the lab’s original goals of enhancing skills in innovation  and supporting project-based problem solving:
Direct lab staff to develop a mix of performance targets and measures  to help them monitor and report on their progress toward lab goals. Direct lab staff to build on existing efforts to share information and  knowledge within the federal innovation community. In summary, OPM generally concurred with our  recommendations and described ongoing and planned steps to refine  evaluation efforts and further leverage other federal innovation labs. GAO staff members who made major  contributions to this report are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

This appendix provides information on the scope of work and the  methodology used to (1) describe the Office of Personnel Management  (OPM) innovation lab’s start-up and operating costs, staffing and  organization, activities, and policies governing the lab’s use, and (2)  assess how OPM’s innovation lab compares to other organizations’  innovation labs, including how it uses benchmarks and associated metrics  and how it addresses potential challenges to innovation. We used the findings from our literature review to identify organizations  with innovation facilities having a dedicated physical space and using  problem-solving methods similar to OPM’s lab. Capacity building—lab hosts classes and  workshops.
Why GAO Did This Study

Organizations from around the globe are emphasizing that strategies promoting innovation are vital to solving complex problems. To try to instill a culture of innovation in its agency, OPM followed the lead of a number of private sector companies, nonprofit organizations, and government bodies by creating an innovation lab. GAO was asked to examine the lab.
Specifically, GAO 1) described the lab's start-up costs, staffing and organization, activities, and policies governing the lab's use, and 2) assessed how OPM's innovation lab compares to other organizations' innovation labs, including how it uses benchmarks and metrics and how it addresses challenges to innovation. GAO reviewed cost, staffing, and performance information. GAO also reviewed relevant literature on innovation and interviewed officials from public, private, and nonprofit organizations with innovation facilities similar to OPM's lab.

What GAO Found

In March 2012, the Office of Personnel Management (OPM) opened its innovation lab, a distinct physical space with a set of policies for engaging people and using technology in problem solving. The goals of OPM's innovation lab are to provide federal workers with 21st century skills in design-led innovation, such as intelligent risk-taking to develop new services, products, and processes. OPM's lab was built at a reported cost of $1.1 million, including facility upgrades and construction, equipment and training, and other personnel costs. The lab employs approximately 6 full-time equivalents, including a director, and in fiscal year 2013, the lab's operating costs were approximately $476,000, including salaries.
OPM's innovation lab is similar in mission and design to other innovation labs GAO reviewed, and OPM has incorporated some of the prevalent practices that other labs use to sustain their operations. Specifically, OPM is using its lab for a variety of projects, including as a classroom for building the capacity to innovate in the federal government. Lab staff indicated that they plan to begin long-term immersion projects—complex projects with diverse users—within a few months. OPM plans to develop and implement evaluation plans specific to each immersion project that will help them track cost benefits or performance improvement benefits associated with the projects.
Starting in March 2013, OPM lab staff began work on a program evaluation framework to more systematically measure the lab's progress toward meeting its overarching goals. In addition, lab staff members are tracking lab activities, such as classes and workshops, and are surveying lab users about the quality of their experience in the lab. However, they have not developed performance targets or measures related to project outcomes, and without a rigorous evaluation framework that can help OPM track the lab's performance, it will be hard to demonstrate that the lab is operating as originally envisioned.
While labs provide a physical space where innovators can convene, federal agencies are not fully aware of their growing community. However, OPM is taking steps to ensure work done in the lab is shared across OPM and with other federal innovators—for example, by hosting weekly training sessions in the lab on best practices. Studies show that information sharing and interorganizational networks can be a powerful driver supporting innovation.

What GAO Recommends

Among other things, GAO recommends that the Director of OPM should direct lab staff to 1) develop a mix of performance targets and measures to help them monitor and report on progress toward lab goals, and 2) build on existing efforts to share information with other agencies that have innovation labs. OPM generally concurred with GAO's recommendations; in addition, they described the steps being taken and planned to refine their ongoing evaluation efforts and to further leverage other federal innovation labs.