	Strengthening Strategic Human Capital Management

An agency’s most important organizational asset is its people—they define  the agency’s culture, drive its performance, and embody its knowledge  base. In January 2001, we reported that NASA’s shuttle workforce had declined  significantly to the point of reducing NASA’s ability to safely support the  shuttle program. NASA believes that similar workforce problems affect the entire agency  and that, as a result, its ability to perform future missions and manage its  programs may be at risk. In  2000, we reported that NASA’s frequent use of undefinitized contract  changes could result in contract cost overruns and cost growth in the  International Space Station program. Controlling International Space Station Costs

The International Space Station represents an important effort to foster  international cooperation in scientific research and space exploration. While controlling cost  and schedule and retaining proper workforce levels have been difficult in  the past, the shuttle grounding will likely exacerbate these challenges. (See table 1.) NASA’s Administrator, who comes to the position with a strong  management background and expertise in financial management, has  made a personal commitment to change the way NASA does business and  has appointed a chief operating officer to provide sustained management  attention to strategic planning, organizational alignment, human capital  strategy, performance management, and other elements necessary for  transformation success.
Why GAO Did This Study

Since its inception, the National Aeronautics and Space Administration (NASA) has undertaken numerous programs that have greatly advanced scientific and technological knowledge. NASA's activities span a broad range of complex and technical endeavors. But the agency is at a critical juncture, and major management improvements are needed. In January of this year, we identified four challenges facing NASA: (1) strengthening strategic human capital management, (2) improving contract management; (3) controlling International Space Station costs, and (4) reducing space launch costs.

What GAO Found

In summary, these challenges affect NASA's ability to effectively run its largest programs. NASA's ultimate challenge will be in tackling the root problems impeding those programs. This will require (1) instituting a results-oriented culture that fosters knowledge sharing and empowers its workforce to accomplish programmatic goals; (2) ensuring that the agency adheres to management controls to prevent cost overruns and scheduling problems; (3) transforming the financial management organization so it better supports NASA's core mission; and (4) sustaining commitment to change.