Human Capital Assessment and
Accountability Framework
(HCAAF)
Breakout Session # 210
Name: Mike Flentje, Kristin Porter, Frank McNally
Date: Monday, July 19
Time: 2:30 – 3:45
1
1
The Presenters
Mike Flentje – Public Sector Director, Human
Capital Services Leader
Leads the PwC Public Sector Practice ‘Human Capital’ Talent
Network and serves as Project Director for the VA Acquisition Intern
Program Engagement.
Kristin Porter – Public Sector Manager
Serves as Project Manager for the VA Acquisition Intern Program
Engagement
Frank McNally – Public Sector Senior Associate
Former Federal Contracting Officer and Instructor/Subject Matter
Expert for the VA Acquisition Intern Program Engagement
2
AN INTRODUCTION TO HCAAF
3
HCAAF System Relationships
Leadership & Knowledge
Management
• Leadership Succession Management
• Change Management
• Integrity and Inspiring Employee
Commitment
• Continuous Learning
• Knowledge Management
Results-Oriented
Performance Culture
Strategic Alignment
• Human Capital Planning
• Workforce Planning
• Human Capital Best Practices
•
•
•
•
•
and Knowledge Sharing
• Human Resources as Strategic
Partner
Communication
Performance Appraisal
Pay for Performance
Diversity Management
Labor/Management Relations
Accountability
Talent Management
• Assessment of Progress and
• Recruitment
• Retention
Results
• Compliance
4
The Evolution of HCAAF
2001
• OPM requires
agencies to
establish HRM
accountability
systems (Exec.
Order 13197)
• PMA identifies
Strategic
Management
of Human
Capital as a
priority
• Human Capital
Scorecard
released
2002
• OMB, OPM,
and GAO
develop
HCAAF
• Chief Human
Capital
Officers Act of
2002 issued
• Federal
Human Capital
Survey is
launched
2004-2005
• Title 5 USC,
Part 1103
outlines
responsibilities
of OPM
• HCAAF
revised to
define five
human capital
management
systems and
metrics to be
included in
Federal
Departments’
Strategic
Capital Plans
5
2006
• HCAAF and
the HCAAF
Practitioners’
Guide are
referenced in
proposed
regulations
• New questions
added to
Federal
Human Capital
Survey
2008
• Title 5 CFR,
Part 250
implements
CHCO Act and
HCAAF
The President’s Management Agenda
Strategic
Management
of Human Capital
Competitive
Sourcing
Improved Financial
Performance
Expanded
Electronic
Government
Budget and
Performance
Integration
Strategic Management of Human Capital
• Transformation of how the Federal
government employs, deploys, develops
and evaluates the workforce
• Focuses on results, not processes
• Places the right people in the right jobs at
the right time to most effectively perform
the work of the organization
6
Why a Human Capital Initiative?
Expected Near-Term Results
• Strategies linked to
organizational focus
• Use of strategic workforce
planning methodologies and
tools
• “Buy or build” staffing
decisions
Expected Long-Term Results
• Improved service and
performance increases citizen
satisfaction
• Build, sustain, and deploy the
workforce to meet current and
emerging needs
• Adaptable workforce emerges
• Common framework
improves recruitment and
retention of quality personnel
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• Government employee
satisfaction increases
What HCAAF Means for You
New Requirements for Federal Agencies

• Annual Human Capital Management Report
• Human Capital Strategic Plan
• Human Capital Accountability Report

• Quarterly OMB scoring of efforts to implement the
President’s Management Agenda Human Capital
Initiative

• Invitation to participate in the Federal Human Capital
Survey (FHCS) every two years
8
Discussion: What are the most pressing human
capital issues facing your organization today?
9
HCAAF Tools for Federal Agencies
• HCAAF
Resource Center
• HCAAF
Practitioners’
Guide
• OPM Federal
Human Capital
Survey
10
What is the HCAAF Practitioners’ Guide?
• Outlines the 3-step process of human capital management
for Federal agencies
• Establishes and defines five human capital systems that
constitute Federal government human capital management
• Fulfills OPM’s mandate to design systems and set standards
and metrics for assessing human capital management in the
Federal government
• Supports requirement for agencies to submit an annual
Strategic Human Capital Plan and Agency Human Capital
Accountability Report
11
HCAAF System Relationships
Leadership & Knowledge
Management
• Leadership Succession Management
• Change Management
• Integrity and Inspiring Employee
Commitment
• Continuous Learning
• Knowledge Management
Results-Oriented
Performance Culture
Strategic Alignment
• Human Capital Planning
• Workforce Planning
• Human Capital Best Practices
•
•
•
•
•
and Knowledge Sharing
• Human Resources as Strategic
Partner
Communication
Performance Appraisal
Pay for Performance
Diversity Management
Labor/Management Relations
Accountability
Talent Management
• Assessment of Progress and
• Recruitment
• Retention
Results
• Compliance
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System 1: Strategic Alignment
Component
Explanation
Definition
• Alignment of human capital management strategies with agency mission,
goals, and objectives
Standard
• Human capital management strategies are aligned with mission, goals,
and organizational objectives and integrated into its strategic plans,
performance plans, and budgets
Critical Success
Factors
•
•
•
•
Metrics
• Documented evidence of a current agency human capital plan that
includes human capital goals, objectives and strategies; a workforce plan;
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and performance measures
and milestones
Human Capital Planning
Workforce Planning
Human Capital Best Practices and Knowledge Sharing
Human Resources as Strategic Partner
System 2: Leadership and
Knowledge Management
Component
Explanation
Definition
• Ensure continuity of leadership
• Identify and address potential gaps in effective leadership
• Implement and maintain programs that capture organizational knowledge and
promote learning
Standard
• Effectively manage people and ensure continuity of leadership
• Sustain a learning environment that drives continuous performance improvement
• Provide a means to share critical knowledge across the organization
Critical Success
Factors
•
•
•
•
•
Metrics
• Competency Gaps Closed for Management and Leadership
• Leadership and Knowledge Management Index
Slide
• Merit-Based Execution of the
14 Leadership and Knowledge Management system
Leadership Succession Management
Change Management
Integrity and Inspiring Employee Commitment
Continuous Learning
Knowledge Management
Federal Human Capital Survey Results:
Leadership and Knowledge
Management
Results from the Leadership and Knowledge Management Index
2008 %
Positive
2008 FHCS Item
Change in % Positive
2006-2008
2004-2006
I have trust and confidence in my supervisor.
64%
0
0
Overall, how good a job do you feel is being done by your immediate supervisor/team leader?
66%
0
+1
My workload is reasonable.
60%
+1
0
Managers/supervisors/team leaders work well with employees of different backgrounds.
65%
+1
+1
I have a high level of respect for my organization’s senior leaders.
52%
+3
+2
In my organization, leaders generate high levels of motivation and commitment in the workforce.
40%
+2
+3
Managers communicate the goals and priorities of the organization.
60%
+2
0
Managers review and evaluate the organization’s progress toward meeting its goals and objectives.
58%
+2
+1
Employees are protected from health and safety hazards on the job.
76%
+1
+1
My organization has prepared employees for potential security threats.
74%
+1
0
How satisfied are you with the information you receive from management on what’s going on in your
organization?
48%
+1
+2
42%
+1
+2
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How satisfied are you with the policies and practices of your senior leaders?
System 3: Results-Oriented
Performance Culture
Component
Explanation
Definition
Promotes a diverse, high-performing workforce by implementing and maintaining
effective performance management systems and awards programs
Standard
Agency has a diverse, results-oriented, high-performing workforce and a performance
management system that differentiates between high and low levels of performance
and links individual/team/unit performance to organization goals and desired results
effectively
Critical Success
Factors
•
•
•
•
•
Communication
Performance Appraisal
Pay for Performance
Diversity Management
Labor/Management Relations
Metrics
•
•
•
•
SES Performance/Organizational Performance Relationship
Workforce Performance Appraisals Aligned to Mission, Goals and Outcomes
Results-Oriented Performance Culture Index
Merit-Based Execution of Slide
the Results-Oriented Performance Culture system
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Federal Human Capital Survey Results:
Results-Oriented Performance Culture
Results from the Results-Oriented Performance Culture Index
2008 FHCS Item
2008 %
Positive
Change in % Positive
2006-2008
2004-2006
The people I work with cooperate to get the job done.
84%
+1
-1
My supervisor supports my need to balance work and other life issues.
75%
-3
-4
I know how my work relates to the agency’s goals and priorities.
84%
+1
+1
Physical conditions (for example, noise level, temperature, lighting, cleanliness in the workplace)
allow employees to perform their jobs well.
67%
0
0
Promotions in my work unit are based on merit.
35%
+1
+1
In my work unit, steps are taken to deal with a poor performer who cannot or will not improve.
30%
+1
+3
Employees have a feeling of personal empowerment with respect to work processes.
44%
+2
+1
Creativity and innovation are rewarded.
40%
+1
+4
Pay raises depend on how well employees perform their jobs.
26%
+4
0
In my work unit, differences in performance are recognized in a meaningful way.
31%
+1
+2
My performance appraisal is a fair reflection of my performance.
63%
-1
-3
Discussions with my supervisor/team leader about my performance are worthwhile.
56%
0
-2
50%
+1
+1
Slide
17
How satisfied are you with the recognition you receive for doing a good job?
System 4: Talent Management
Component
Explanation
Definition
• Addresses competency gaps, particularly in mission-critical positions
• Implements and maintains programs to attract, acquire, develop,
promote, and retain quality talent
Standard
• Agency has closed skills, knowledge, and competency gaps in missioncritical occupations
Critical Success
Factors
• Recruitment
• Retention
Metrics
•
•
•
•
Competency Gaps Closed for Mission Critical Occupations
Talent Management Index
Job Satisfaction Index
Merit-Based ExecutionSlide
of the Talent Management system
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Federal Human Capital Survey Results:
Talent Management
Results from the Talent Management Index
2008 %
Positive
2008 FHCS Item
Change in % Positive
2006-2008
2004-2006
I am given a real opportunity to improve my skills in my organization.
64%
+2
+1
The workforce has the job-relevant knowledge and skills necessary to accomplish organizational
goals.
74%
0
0
My work unit is able to recruit people with the right skills.
45%
+1
+1
My talents are used well in the workplace.
62%
+1
0
Supervisors/team leaders in my work unit support employee development.
65%
+1
0
My training needs are assessed.
53%
+2
+2
55%
+1
0
19
How satisfied are you with the training you receive for your present job?
System 5: Accountability
Component
Explanation
Definition
• Monitors and evaluates the results of human capital management policies,
programs, and activities
• Analyzes compliance with merit system principles and identifies opportunities
for improvement
Standard
• Human capital management decisions are guided by a data-driven, resultsoriented planning and accountability system
• Results inform the development of human capital goals and objectives, in
conjunction with the agency’s strategic planning and performance budgets
Critical Success
Factors
• None identified
Metrics
• Documented evidence of a Human Capital Accountability system that provides
for annual assessment of agency human capital management progress and
Slide
results including compliance
with relevant laws, rules, and regulations
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A CLOSER LOOK AT TALENT MANAGEMENT
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Talent Management: A Closer Look
• The standard for success in talent management is to close
competency gaps and make progress…it is not meant to happen
overnight.
• Talent Management’s two Critical Success Factors promote the
benefits of one another and help an organization eliminate gaps in
skills, knowledge, and competencies
• Required outcome metrics assess organization’s targeted efforts and
talent management capability, employee satisfaction, and
organizational compliance with merit system principles.
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Talent Management: Critical Success Factors
Recruitment and retention are co-dependent; the success of one
influences and affects the success of the other.
To exemplify this:
• An organization that is unable to recruit a diverse and qualified
workforce will invariably experience difficulty retaining its employees.
The lack of a strategic recruitment strategy will challenge the proper
placement of new employees, increase dissatisfaction of current
employees, and negatively impact workforce retention.
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Talent Management: A Closer Look
Results from the Talent Management Index
2008 %
Positive
2008 FHCS Item
Change in % Positive
2006-2008
2004-2006
I am given a real opportunity to improve my skills in my organization.
64%
+2
+1
The workforce has the job-relevant knowledge and skills necessary to accomplish
organizational goals.
74%
0
0
My work unit is able to recruit people with the right skills.
45%
+1
+1
My talents are used well in the workplace.
62%
+1
0
Supervisors/team leaders in my work unit support employee development.
65%
+1
0
My training needs are assessed.
53%
+2
+2
How satisfied are you with the training you receive for your present job?
55%
+1
0
RECRUITMENT
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Talent Management: Required Metrics
How will we know when we get there?
Four Required Outcome Metrics help measure an organization’s Talent
Management System:
1. Competency Gaps Closed for Mission-Critical Occupations
[Organization]
This metric will prompt an organization to conduct a gap analysis to
determine competency needs, which informs that organization’s
targeted recruitment efforts.
Bottom Line: Know what you need before you go out and find it.
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Talent Management: Required Metrics
How will we know when we get there?
Four Required Outcome Metrics help measure an organization’s Talent
Management System:
2. Questions from Annual Employee Survey about Organizational
Capacity [Employee Perspective]
Provides an organization with an employee-level assessment of
whether the talent pool is appropriate to achieve mission goals.
Bottom Line: Workforce is competent and confident in themselves
and each other.
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Talent Management: Required Metrics
How will we know when we get there?
Four Required Outcome Metrics help measure an organization’s Talent
Management System:
3. Questions from Annual Employee Survey about Employee
Satisfaction [Employee Perspective]
Allows an organization to determine the extent to which its employees
are satisfied with their job.
Bottom Line: Employees are satisfied with the important aspects of
their job.
27
Talent Management: Required Metrics
How will we know when we get there?
Four Required Outcome Metrics help measure an organization’s Talent
Management System:
4. Merit-Based Execution of the Talent Management System [Merit
System Compliance]
Allows an organization to assess whether the tools it is using to
manage talent are in compliance with merit system principles.
Bottom Line: Talent Management System is fully compliant with laws,
rules, and regulations.
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Talent Management: Suggested Metrics
How will we know when we get there?
Five Suggested Metrics provide additional visibility:
Employee Turnover – statistics AND a reason for leaving
Employee Turnover during Probationary Period – what is the impact of the
probationary period, and is the reason for leaving voluntary or
involuntary?
8. Time to Hire – helps determine efficiency of the hiring process
9. Management Satisfaction with Hiring Process – not a “time to hire” metric,
rather it assesses whether strategies achieve goals
10. Applicant Satisfaction with Hiring Process – do applicants have a
favorable impression of the process?
6.
7.
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Talent Management: In Summary
What Does Success Look Like?
When the Critical Success Factors are effectively implemented, an
organization will see progress in Talent Management.





Competency gaps are closed, resulting in a workforce capable of performance
excellence
Senior leaders and managers are involved in the strategic recruitment and
retention initiatives and apply the necessary focus and resources to achieve related
goals
Recruitment results in a sufficient pipeline of qualified applicants
Flexible compensation strategies are used in both recruiting and retention
Quality of work/life programs are provided and address obstacles to recruitment
and retention, putting the organization in position to be successful in managing
talent
30
TALENT MANAGEMENT IN ACTION: VA’S
ACQUISITION INTERNSHIP SCHOOL
31
Talent Management in Action:
VA’s Acquisition Internship School
The VA Acquisition Academy (VAAA) was launched in 2008 to improve
the core competencies of VA’s contracting and acquisition
professionals and address growing shortages in the workforce.
It is comprised of four schools:
1.
2.
3.
4.
Acquisition Internship School
FAC-C School
FAC-P/PM School
Acquisition Corps School
32
Talent Management in Action:
VA’s Acquisition Internship School
The Acquisition Internship School recruits, trains, and develops VA’s
1102 workforce to improve competency and address staffing shortages
• Length: 3 years in residence
• Curriculum:
• Formal FAC-C Coursework
• Informal courses provide a safe environment for exercise and analysis
• Leadership, team building, project management, and mission service
increase commitment to VA and improve retention
• On-the-job Training: Participants are exposed to the work
environment during periodic job rotations
33
Talent Management in Action:
VA’s Holistic Approach
The Internship School uses a holistic curriculum approach to
developing technical, interpersonal, and leadership skills through
the following components:
Formal Contracting Courses
Formal Leadership Courses
Skill Building Workshops
Challenging Job Rotations
Non-Classroom Components
34
Instructor-led contracting officer FAC-C certification
curriculum improves mission-critical contracting competency.
Instructor-led classes focused on key leadership and
business skills, improving ability and aptitude.
Scenario-driven workshops reinforce knowledge obtained in
formal courses and improve organizational talent level.
Facilitated on-the-job training at VA contracting offices
provides real experience and contributes to workforce
capability, performance excellence, and service.
Activities designed to foster teamwork, personal
development, and appreciation for VA’s mission improves
employee perspective.
34
Talent Management in Action: The “Secret
Sauce” of Experiential Adult Learning
Non-Classroom Activities
Let Me Try
Job Rotations
Show Me &
Let Me Try
Skill-Building Workshops
Tell Me &
Show Me
Formal Contracting
Courses
“Secret Sauce”
Non-Classroom
Activities and
Skill-building
Workshops
reduce interns’
time to
competency
Formal
Leadership Courses
Adult Learning Model = Tell Me  Show Me  Let Me Try
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Talent Management in Action: Reduced
Time to Competency
Why it Works…
Accelerated Learning
• Accelerates the learning
curve to be more
productive more quickly
• Translates theory,
fundamentals, and
concepts into practical
application
• Evolves from basic to
complex acquisition
strategies through
consistent reinforcement
Competency Proficiency
Trusted Business Advisor
FAC-C Level III Certified
Contracting Professional
Time
VA Acquisition Intern Program
Traditional Intern Program
36
SUMMARY
37
Benefits of Implementing HCAAF
 Enables agencies to transform the Federal workplace
into high-performing arenas
 Helps employees understand and maximize their
contributions to the agency mission
 Allows agencies to focus on the human capital
management systems and practices that most impact
their mission
 Provides measurable, observable agency and
individual performance results
 Ensures continued trust in the government’s ability to
serve and protect
38
QUESTIONS?
39