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Human Capital: Insights for U.S. Agencies from Other Countries' Succession Planning and Management Initiatives
Leading public organizations here and abroad recognize that a more strategic approach to human capital management is essential for change initiatives that are intended to transform their cultures. To that end, organizations are looking for ways to identify and develop the leaders, managers, and workforce necessary to face the array of challenges that will confront government in the 21st century. GAO conducted this study to identify how agencies in four countries--Australia, Canada, New Zealand, and the United Kingdom--are adopting a more strategic approach to managing the succession of senior executives and other public sector employees with critical skills. These agencies' experiences may provide insights to executive branch agencies as they undertake their own succession planning and management initiatives. GAO identified the examples described in this report through discussions with officials from central human capital agencies, national audit offices, and agencies in Australia, Canada, New Zealand, and the United Kingdom, and a screening survey sent to senior human capital officials at selected agencies. Leading organizations engage in broad, integrated succession planning and management efforts that focus on strengthening both current and future organizational capacity. As part of this approach, these organizations identify, develop, and select their human capital to ensure that successors are the right people, with the right skills, at the right time for leadership and other key positions. To this end, agencies in Australia, Canada, New Zealand, and the United Kingdom are implementing succession planning and management initiatives that are designed to protect and enhance organizational capacity.
Strategic human capital management is a high risk area that threatens the federal government's ability to effectively serve Americans. An essential element to developing and managing the human capital needed to achieve organizational results is the link between individual performance and organizational goals. Performance management systems provide one way to make this link. Governments and agencies in Australia, Canada, New Zealand, and the United Kingdom have used their performance management systems to connect employee performance with organizational success to help foster a results-oriented organizational culture. Creating such a culture is one cornerstone identified in GAO's model of strategic human capital management. GAO initiated this study to identify how selected agencies are strategically using their performance management systems. GAO talked with key human capital decision makers from each country including national audit offices, central management and human capital agencies, and line agencies, as well as representatives of employee associations.
With more than 50% of its civilian workforce (about 700,000 civilians) eligible to retire in the next few years, DoD may be faced with deciding how to fill numerous mission-critical positions -- some involving senior leadership. The National Defense Authorization Act (NDAA) for FY 2006 requires DoD to develop a strategic human capital plan, update it annually through 2010, and address 8 requirements. The 2007 NDAA added nine requirements to the annual update to shape DOD's senior leader workforce. This report assesses the extent to which DoD's 2008 update addressed: (1) the 2006 human capital planning requirements; (2) the 2007 senior leader requirements; and (3) key factors that may affect civilian workforce planning. Illus.