	GAO’s Model of Strategic Human Capital Management

Our model of strategic human capital management is designed to help agency leaders effectively lead and manage their people and integrate human capital considerations into daily decision-making and the program results they seek to achieve. In so doing, the model highlights the importance of a sustained commitment by agency leaders to maximize the value of their agencies’ human capital and to manage related risks. As I noted before, OPM and OMB have developed tools that are being used to assess human capital management efforts. As such, the model reflects two principles central to the human capital idea:   People are assets whose value can be enhanced through investment. As with any investment, the goal is to maximize value while managing risk. An organization’s human capital approaches should be designed, implemented, and assessed by the standard of how well they help the organization pursue its mission and achieve desired results or outcomes. Specifically, agency leaders, political and career alike, must embrace strategic human capital management and related change management approaches.
Why GAO Did This Study

This testimony discusses the federal government's human capital challenges.

What GAO Found

The basic problem has been a longstanding lack of a consistent strategic approach to marshalling, managing, and maintaining the government's human capital needs. To overcome this problem, GAO has developed a model of strategic human capital management that highlights the importance of a sustained commitment by agency leaders to maximize the value of their workforce. The Office of Personnel Management and the Office of Management and Budget have developed tools to assess human capital management efforts that are conceptually consistent with GAO's model. GAO's model emphasizes two central principles. First, people are assets whose value can be enhanced through investment. As with any investment, the goal is to maximize value while managing risk. Second, an organization's human capital approaches should be designed, implemented, and assessed by how well they help pursue its mission and achieve desired results. GAO has also identified a preliminary list of key practices that will enable agencies to acquire, develop, and retain talent. Successful organizational change depends on a willingness by agency leaders to embrace strategic human capital management and related change management approaches.