Design Process Provides for Collaboration

DHS’s and OPM’s effort to design a new human capital system is  collaborative and facilitates participation of employees from all levels of  the department. DHS Personnel System will Need To Be Integrated with Mission and Program Goals

DHS will need to ensure that the development of the human capital policy  options by the Core Design Team is integrated with the accomplishment of  DHS programmatic goals as defined in the forthcoming strategic plan. In light of this, we previously stated that the success of the DHS  transformation requires the department to link its human capital strategy  with its homeland security strategy. DHS is currently developing a strategic plan. Process Steered by Guiding Principles

The Secretary and Director outlined four principles to serve as a  framework for the Core Design Team during their first meeting in April:
The system has to support both the mission and the people charged with  implementing the mission. These principles can serve as core values for human capital management at  DHS – values that define the attributes that are intrinsically important to  what the new organization does and how it will do it. Finally, they appropriately  identify the need to support the mission and employees of the department,  protect basic civil service principles, and hold employees accountable for  performance. Ambitious Timeline Established

DHS and OPM established a 9- to 10-month timeline for completing the  design process with the expectation that the final regulations will be issued  in early 2004. Although the establishment of a clear timeline is positive, a majority of  DHS stakeholders we interviewed expressed concerns about its  compressed schedule. 3 and 4.) Communications Plan Recently Completed

DHS recently completed a noteworthy communications strategy that  provides a structured and planned approach to communicate with DHS  stakeholders regarding the human capital system. Building on the current effort, DHS will need to provide adequate  opportunities for feedback once the options are released, including  providing an adequate level of detail on how the new system will impact  employees. Design Process Provides for Employee Involvement

Employee perspectives on the design of the DHS human capital system are  sought through many mechanisms, including the Core Design Team with its  members from multiple DHS components, Town Hall meetings, focus  groups, the field team, and an e-mail mailbox for employee comments. Conclusions

DHS and OPM have developed a process to design the new personnel  system that is stimulated and supported by top leadership in both  organizations and is generally inclusive, both in terms of the membership  of the Core Design Team and multiple opportunities to provide input. Substantial involvement  of field staff in the development and implementation of the new human  capital system is essential given that over 90 percent of DHS civilian  employees are in the field. Moving forward, it is critical that the new human  capital system be linked to the DHS strategic plan and that DHS continue to  communicate with and involve its employees. Accordingly, we are  recommending that once the strategic plan is completed the Secretary of  DHS and the Director of OPM ensure that the options selected for the new  human capital system support and facilitate the accomplishment of the  department’s strategic goals and objectives, as identified in the new  strategic plan. This was done  to help federal agencies implement successful cultural transformations,  including DHS. 5.) Smith made key contributions to this report.
Why GAO Did This Study

The success of the transformation and implementation of the Department of Homeland Security (DHS) is based largely on the degree to which human capital management issues are addressed. Recognizing this, the legislation creating DHS provided it with significant flexibility to design a modern human capital management system. Congressional requesters asked GAO to describe the process DHS has in place to design its human capital system and involve employees, and analyze the extent to which this process reflects elements of successful transformations.

What GAO Found

The effort to design a human capital management system for DHS generally reflects important elements of effective transformations. (1) Leadership: One of the strengths of the effort to transform the culture of organizations going into DHS has been the on-going commitment of both DHS and Office of Personnel Management (OPM) leaders to stimulate and support the effort to design a human capital system. (2) Strategic Goals: DHS is currently developing a strategic plan. Although DHS human resource leaders are included on the strategic planning team, it will not be complete until the end of September 2003. Consequently, DHS will need to ensure that the development of the human capital policy options is integrated with the accomplishment of DHS programmatic goals as defined in the forthcoming strategic plan. Such integration is important to ensure that the human capital system enables the department to acquire, develop, and retain the core competencies necessary for DHS to accomplish its programmatic goals. (3) Key Principles: The DHS Secretary and OPM Director outlined four principles to serve as a critical framework for the human capital system. These principles appropriately identify the need to support the mission and employees of the department, protect basic civil service principles, and hold employees accountable for performance. (4) Timeline: Agency officials established an ambitious 9- to 10-month timeline for completing the design process, aiming to issue final regulations in early 2004. Some DHS stakeholders we interviewed expressed concerns about the compressed schedule. Officials leading the design effort report the aggressive schedule is necessary to relieve employee anxiety and maximize the time available for implementation. (5) Design Team: The design team includes staff from multiple organizational units within DHS, OPM, and the three major unions. (6) Communication: DHS recently finalized a communication plan that provides a structured and planned approach to communicate with DHS stakeholders regarding the human capital system. Moving forward, DHS will need to provide adequate opportunities for feedback once the options are released. (7) Employee Involvement: Employees are provided multiple opportunities to be included in the design process, including participation in the Core Design Team, the Town Hall meetings, the field team, the focus groups, and an e-mail mailbox for employee comments. Experience has shown that in making major changes in the cultures of organizations, how it is done, when it is done, and the basis on which it is done can make all the difference in whether it is ultimately successful. The analysis of DHS's effort to design a human capital system can be particularly instructive in light of legislative requests for agency-specific human capital flexibilities at the Department of Defense and the National Aeronautics and Space Administration.