	Background

GPRA calls for agencies to address human capital in the context of performance-based management and specifically requires that annual performance plans describe how agencies will use their human capital to support the accomplishment of their goals and objectives. Concluding Observation

Designing, implementing, and maintaining a strategic human capital management focus are critical to maximizing the performance and ensuring the accountability of the federal government for the benefit of the American people. We found that the ways in which agencies discussed human capital challenges in their fiscal year 2001 performance plans reflected different levels of attention to the critical human capital challenges agencies face. When viewed collectively, we found that there is a need to increase the breadth, depth, and specificity of many related human capital goals and strategies. The plans’ discussions of human capital should continue to show progress in moving away from form to substance, or from simply describing human capital challenges to detailing the what, why, how, and when of the strategies to address those challenges. The discussions should also demonstrate a better link between human capital management and the agencies’ strategic and programmatic planning to maximize performance and ensure the best resource allocation. Overall, with the increasing attention to human capital, the fiscal year 2001 plans showed that substantial opportunities exist for improvements, and we expect that agencies will continue to refine their goals and strategies as they focus on a more systematic, in-depth, and continuous effort to evaluate and improve their human capital management.
Why GAO Did This Study

The Government Performance and Results Act calls for agencies to address human capital in the context of performance-based management. The act requires that annual performance plans describe how agencies will use their human capital to accomplish their goals and objectives. Designing, implementing, and maintaining a strategic human capital management focus are critical to maximizing performance and ensuring that government is accountable to the American people.

What GAO Found

GAO found that the human capital challenges described in fiscal year 2001 performance plans reflected the different levels of attention agencies are to pay this critical issue. GAO contends that the breadth, depth, and specificity of many related human capital goals and strategies needs to be increased. The plans' discussions of human capital increasingly need to focus on describing human capital challenges. The plans need to specify the what, why, how, and when of the strategies to address those challenges. The discussions should also better link human capital management and the agencies' strategic and program planning to maximize performance and ensure optimal resource allocation. Overall, the fiscal year 2001 plans showed that substantial opportunities exist for goals and strategies as they focus on a more systematic, in-depth, and continuous effort to evaluate and improve their human capital management. Agencies will need to follow up to determine whether their plans actually improve human capital management and program outcomes.