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U.S. Government Accountability Office:

GAO:

The Human Capital Strategic Plan:
Fiscal Years 2004-2006:

Accountability:
Integrity:
Reliability:

A Message from the Comptroller General:

[See PDF for image]

[End of figure]

GAO exists to support the Congress in meeting its constitutional 
responsibilities and to help improve the performance and ensure the 
accountability of the federal government for the benefit of the 
American people. To accomplish its mission, GAO depends on a diverse 
and knowledge-based workforce comprising individuals with a broad 
spectrum of technical and program skills and institutional memory. This 
workforce represents GAO's human capital--its greatest asset--and is 
critical to the agency's success in serving the Congress and the 
nation.

This strategic human capital plan is a key step in continuing GAO's 
progress to build a highly effective, performance-based organization by 
attracting, retaining, motivating, and rewarding a high-performing, 
top-quality workforce. GAO believes that strategic human capital 
management must be the centerpiece of any serious change management 
initiative and effort to transform the culture and operations of any 
large organization, including government agencies. This plan extends 
and builds upon what GAO has already accomplished by using existing 
administrative authorities and by pursuing incremental additional tools 
and flexibilities legislatively. From the demonstrated results that GAO 
has achieved, it is clear that we have been a leader in human capital 
or people strategy within the federal government. At the same time, 
this strategic human capital plan is intended to build on these 
accomplishments and position GAO for the future. The plan includes a 
continuing emphasis on the skills, knowledge, and performance of GAO's 
workforce as the primary factors in connection with GAO's employment 
and compensation policies. Additionally, achieving a diverse, 
empowered, and enabled workforce while assuring opportunities for all 
and preventing discrimination are also important elements in this plan. 
Importantly, this strategic human capital plan is directly linked to 
GAO's overall strategic vision of what it wants to accomplish and will 
serve as a cornerstone in our future change management and agency 
transformation initiatives.

Since maximizing performance and ensuring accountability are at the 
heart of GAO's mission, the agency believes that it must lead by 
example in all major management areas, including human capital. By 
managing its workforce strategically, integrating its internal 
strategic and workforce plans, and focusing on results, GAO is helping 
to improve its performance and enhance accountability. By doing so, GAO 
also hopes to demonstrate to other federal agencies that they can make 
similar improvements in the way they manage their people within the 
context of current law while also helping to identify the kinds of 
more-comprehensive legislative reforms that should be enacted.

Signed by:

David M. Walker:
Comptroller General of the United States:

TABLE OF CONTENTS:

INTRODUCTION:
GAO Personnel Act of 1980:
Human Capital Challenges:
Public Law 106-303:
GAO Human Capital Reform Act of 2004:
How GAO Will Utilize These New Flexibilities:
Possible Budgetary Constraints:
Human Capital Office Transformation:
The Strategic Environment:

GAO's STRATEGIC HUMAN CAPITAL MANAGEMENT PLAN: FOUR HUMAN CAPITAL 
CORNERSTONES:
Leadership:
Strategic Human Capital Planning:
Acquiring, Developing, and Retaining Talent:
Creating a Results-Oriented Organizational Culture:

APPENDIX I--MEASURING GAO's MANAGEMENT OF PEOPLE:

[End of Table of Contents]

INTRODUCTION:

GAO Employee Facts:
Number of Employees:
Total: 3,300;
75 percent in headquarters;
25 percent in 11 main field offices.

Primary job series:
Analyst: 54 percent;
IT Specialist: 8 percent;
Auditor: 7 percent;
Attorney: 4 percent;
Economist: 2 percent;
All others: 25 percent.

Highest degree:
Master's: 50 percent;
Bachelor's: 28 percent;
Doctorate: 11 percent;
JD/LLB: 4 percent;
Associate: 2 percent;
None: 5 percent.

Academic disciplines[A]:
Business Administration: 660;
Accounting: 622:
Political Science: 538:
Public Administration: 474:
Public Policy Analysis: 382:
Economics: 404:
History: 253:
International Relations: 253:
All other: 3,331:

Source: GAO.

Note: Numbers include mission staff and mission-support staff.

[A] Many employees have multiple degrees.

[End of table]

With approximately 3,300 employees, GAO is a multidisciplinary 
professional services organization that conducts a wide range of 
financial and performance audits, program evaluations, management 
reviews, investigations, and legal services spanning a broad range of 
government programs and functions. Given GAO's role as a key provider 
of information and analyses for the Congress, maintaining the right mix 
of technical knowledge and subject matter expertise as well as general 
analytical skills is vital to achieving the agency's mission. GAO 
spends about 80 percent of its resources on its people. And yet, like 
other federal agencies, GAO has faced significant human capital 
challenges--challenges that if not effectively addressed, could impair 
the responsiveness and quality of its work for its congressional 
clients and the American people they represent.

Carrying out GAO's mission today is a multidisciplinary staff 
reflecting the diversity of knowledge and competencies needed to 
deliver a wide array of products and services to support the Congress. 
GAO's mission staff hold degrees in a variety of academic disciplines, 
such as accounting, law, engineering, public administration, economics, 
and the social and physical sciences. GAO is extremely proud of its 
employees and the difference that they make for the Congress and the 
nation. It is fair to say that while they account for about 80 percent 
of GAO's costs, they constitute 100 percent of the agency's 
intellectual assets.

Unlike many executive branch agencies, which have either recently 
received or are just requesting new broad-based human capital tools and 
flexibilities, GAO has had certain human capital tools and 
flexibilities for over two decades. As a result, to some extent, GAO 
has been able to develop and implement a human capital management 
system with a degree of independence that most agencies in the 
executive branch do not have. For example, GAO is excepted from certain 
provisions of Title 5, which governs the competitive service, and GAO 
is not subject to Office of Personnel Management (OPM) oversight.

GAO Personnel Act of 1980:

Until 1980, GAO's personnel system was indistinguishable from those of 
executive branch agencies--that is, GAO was subject to the same laws, 
regulations, and policies as they were. However, with the expansion of 
GAO's role in the congressional oversight of federal agencies and 
programs, concerns grew about the potential for conflicts of interest. 
Could GAO conduct independent and objective reviews of executive branch 
agencies such as OPM when these agencies had the authority to review 
GAO's internal personnel activities? As a result, GAO worked with the 
Congress to pass the GAO Personnel Act of 1980, the principal goal of 
which was to avoid potential conflicts by making GAO's personnel system 
more independent of the executive branch. Along with this independence, 
the act gave GAO greater flexibility in hiring and managing its 
workforce. Among other things, it granted the Comptroller General 
authority to:

* appoint, promote, and assign employees without regard to Title 5 
requirements in these areas; 
* set employees' pay without regard to the federal government's 
classification standards and requirements (e.g., those for General 
Schedule); and,

* establish a merit pay system for appropriate officers and employees.

By excepting the agency from the above requirements, the GAO Personnel 
Act of 1980 allowed the agency to pursue some significant innovations 
in managing its people. One key innovation was the establishment of a 
"broad banding," or "pay banding," approach for classifying and paying 
the agency's analyst and attorney workforce in 1989. This was coupled 
with the adoption of a pay-for-performance system for this portion of 
the workforce. Therefore, while other agencies are only now requesting 
the authority to establish broad banding and pay-for-performance 
systems, GAO has had almost 15 years of experience with such systems.

On the basis of analyses and feedback from managers and employees, in 
an effort aimed at continuous improvement, GAO is currently undertaking 
a comprehensive classification and compensation review with respect to 
its broad-banded systems. The overriding objective of this review is to 
assure that our policies and practices enable GAO to attract, retain, 
and reward top talent--both now and in the future. This main objective 
is supported by four key principles: (1) classification and 
compensation systems should result in equal pay for work of equal value 
over time, (2) the classification program should be an accurate 
reflection of what we expect our people to do, (3) classification and 
compensation systems should be reasonable and competitive, and (4) 
these same programs should be affordable and sustainable on the basis 
of current and expected resource levels. In addition to reviewing and 
updating our existing broad-banding and pay-for-performance systems, 
work is under way to convert the agency's mission support 
(administrative) staff to a broad-banded, pay-for-performance system 
during the latter part of fiscal year 2004.

Human Capital Challenges:

A number of the human capital challenges that GAO has faced were 
created by the significant reduction in the size of the agency 
undertaken in the mid-1990s. Specifically, from fiscal year 1992 
through fiscal 1997, GAO underwent budgetary cuts totaling 33 percent 
in constant fiscal 1992 dollars. To achieve those budgetary reductions 
while meeting other agency needs, GAO reduced the number of its 
employees 39 percent through extensive field office closings and 
targeted reductions in headquarters staff. To conform to the reduced 
budgetary ceiling, GAO then instituted a virtual hiring freeze at the 
entry level, cut training for all staff, suspended agencywide incentive 
programs, and at times used mid-level promotions as a retention 
strategy. Because of the reduction in hiring and the nature of the 
then-existing reduction-in-force (RIF) rules, the average age of the 
agency's workforce increased, and the retirement eligibility of staff 
accelerated. Analyses showed that by the end of fiscal 2004, about 34 
percent of all GAO employees would be eligible to retire. For upper-
level staff, the proportion eligible to retire was even larger: 48 
percent of all band III management-level employees and 55 percent of 
all Senior Executive Service members.

Thus, as at many federal agencies, GAO's human capital profile had come 
to reflect a workforce that was smaller, older, and increasingly top-
heavy. In addition to the succession-related concerns raised by such a 
profile, GAO also faced a range of skills gaps. As major policy issues 
have become more complex and as technology has radically altered the 
way the federal government conducts business, the types of skills and 
knowledge needed by GAO staff have been evolving, and the need for 
sophisticated technical skills has been increasing.

In the late 1990s, GAO's leadership recognized that GAO's human capital 
profile and selected skills gaps presented serious challenges to GAO's 
future ability to serve the Congress. The Comptroller General also 
sought to have GAO become a model federal agency and a world-class 
professional services organization that focuses on delivering positive 
results for the Congress and the country. GAO's ability to operate in 
an efficient, effective, and economical manner and meet the ever-
changing and increasingly complex needs of the Congress could be 
seriously compromised if the agency's human capital challenges were not 
effectively addressed.

As a first step in addressing these concerns, GAO utilized its internal 
administrative authority to implement measures to improve the alignment 
of its human capital with overall strategic goals and objectives as 
contained in GAO's Strategic Plan. After our first strategic plan was 
developed in 2000, we used it to restructure our organization to align 
with the goals and objectives of the plan. GAO's restructuring resulted 
in the elimination of a layer of management and the consolidation of 35 
issue areas into 13 teams, and further reduced our field offices from 
16 to 11. These changes have enabled GAO to become less hierarchical, 
process-oriented, "siloed," and internally focused and more results-
oriented, partnerial, client focused, and externally aware. Other major 
human capital initiatives included an overall human capital self-
assessment, the revitalization of the recruiting and college relations 
programs, a workforce planning process, and the establishment of a 
professional development program for entry-level analysts.

These and subsequent measures improved the "shape" of the agency by 
decreasing the number of midlevel managers and by increasing the number 
of entry-level and other staff with the skills and abilities needed to 
accomplish GAO's work as shown in figure 1.

Figure 1: FY 1998 Actual, and FY 2004, 2005 and 2006 Projected:

SES/SL;
FY 1998: 3.9%;
FY 2004: 4.0%;
FY 2005: 4.0%;
FY 2006: 4.0%.

Analyst band III;
FY 1998: 12.2%;
FY 2004: 13.4%;
FY 2005: 13.2%;
FY 2006: 13.0%.

Analyst band II;
FY 1998: 45.6%;
FY 2004: 38.8%;
FY 2005: 39.4%;
FY 2006: 40.0%.

Analyst band I;
FY 1998: 13.1%;
FY 2004: 20.3%;
FY 2005: 20.1%;
FY 2006: 19.9%.

Attorney & Criminal Investigator;
FY 1998: 4.2%;
FY 2004: 4.5%;
FY 2005: 4.6%;
FY 2006: 4.6%.

Admin. & Professional Support;
FY 1998: 21.0%;
FY 2004: 19.0%;
FY 2005: 18.7%;
FY 2006: 18.5%.

Source: GAO.

Note: Profiles represent staffing at the end of each fiscal year.

[End of table]

Public Law 106-303:

In addition to these initiatives, GAO's leadership recognized that 
additional steps to reshape the agency's workforce were necessary and 
that preexisting personnel authorities did not allow the agency to 
address these challenges effectively. Therefore, GAO sought legislation 
establishing narrowly tailored flexibilities that would help to reshape 
its workforce and recruit and retain staff with needed technical 
skills. On the basis of a sound business case, Pub. L. No. 106-303--
known as the GAO Personnel Flexibilities Act (the act)--was enacted in 
October 2000. The act authorized the Comptroller General to implement 
the following personnel flexibilities:

* offer voluntary early retirement ("early out") to realign the 
workforce to meet budgetary constraints or mission needs; correct skill 
imbalances; or reduce high-grade, managerial, or supervisory positions; 
* offer separation incentive payments to realign the workforce to meet 
budgetary constraints or mission needs; correct skill imbalances; or 
reduce high-grade, supervisory, or managerial positions; 
* establish modified regulations for the separation of employees during 
a reduction or other adjustment in force; 
* establish senior-level scientific, technical, and professional 
positions and provide those positions with the same pay and benefits 
applicable to the Senior Executive Service, while remaining within 
GAO's current allocation of super-grade positions; and,

* renew 3-year term appointments.

Since the act's implementation in 2000, GAO found that the loss of 
higher-level staff through the early out authority, along with the loss 
of other employees whose skills did not match the agency's highest 
priority needs, has helped GAO address succession planning and skill 
imbalance issues in addition to increasing the numbers of entry-level 
staff who can be hired. During this period, GAO also used its authority 
to establish and fill eight senior-level positions, including that of a 
Chief Accountant, Chief Economist, Chief Statistician, and Chief 
Actuary. The other flexibilities have not been used to date.

GAO Human Capital Reform Act of 2004 The Congress recently passed GAO's 
most recent legislative proposal combining diverse initiatives that, 
collectively, should further GAO's ability to enhance its performance 
and ensure its accountability through helping to ensure that it can 
attract, retain, motivate, and reward a top-quality, high-performing 
workforce. Some of these provisions give GAO the permanent authority to 
use certain human capital tools and flexibilities that it has 
effectively utilized, especially in changing the shape of its 
workforce.

These initiatives should also have the beneficial effect of helping 
guide other agencies in their human capital transformation efforts. 
Specifically, the Congress provided the agency with the following 
additional human capital tools and flexibilities:

* makes permanent GAO's 3-year authority to offer voluntary early 
retirement and voluntary separation payments; 
* allows the Comptroller General to adjust the pay rates of GAO 
employees separately from the annual adjustments authorized for 
executive branch employees; 
* permits GAO to set the pay of an employee demoted as a result of 
workforce restructuring or reclassification at his or her current rate 
with no automatic annual increase to basic pay until his or her salary 
is less than the maximum rate for the new position; 
* provides authority to reimburse employees for some relocation 
expenses when that transfer does not meet current legal requirements 
but still benefits GAO; 
* provides 20 days of annual leave for certain employees with less than 
3 years of federal service; 
* authorizes an executive exchange program with private-sector 
organizations working in areas of mutual concern where GAO has a 
supply-demand imbalance; and,

* changes GAO's name from the "General Accounting Office" to the 
"Government Accountability Office.":

How GAO Will Utilize These New Flexibilities:

GAO will continue to use its early out authority when necessary to 
realign GAO's workforce in order to meet budgetary demands or mission 
needs, correct skill imbalances, or reduce high-grade positions. 
Although GAO has not yet used its buyout authority and has no plans to 
do so in the foreseeable future, the agency sought to retain this 
flexibility to maximize the options available to the agency to deal 
with future circumstances, which cannot be reasonably anticipated at 
this time.

The pay flexibilities in the GAO Human Capital Reform Act of 2004 (HC 
II) will give GAO the flexibility to make changes in the manner in 
which it annually adjusts the basic pay rates of employees and allows 
greater discretion in determining the annual across-the-board and 
locality pay increases for our employees. GAO has the discretion to set 
annual pay increases by taking into account alternative methodologies 
from those used by the executive branch and various other factors, such 
as extraordinary economic conditions or serious budgetary constraints. 
GAO is no longer required to provide automatic pay increases to 
employees who are rated as performing at a below satisfactory level. 
When the legislation is fully implemented, GAO will be able to allocate 
more of the funding historically allocated for automatic across-the-
board pay adjustments to permanent base pay adjustments that would vary 
on the basis of performance. In addition, this flexibility affects all 
GAO non-wage-grade employees, including the SES and Senior Level staff.

Ultimately, all GAO employees who perform at a satisfactory level will 
receive an annual base pay adjustment composed of purchase power 
protection and locality-based pay considerations absent extraordinary 
economic circumstances or severe budgetary constraints. GAO will 
develop and apply its own methodology for annual cost-of-living and 
locality pay adjustments. For example, pay ranges in Washington, D.C., 
and in other cities in which GAO employees reside, will be based on the 
results of an independent compensation study conducted for GAO that 
will be tailored to the nature, skills, and composition of GAO's 
workforce. The performance part of an employee's annual raise will 
depend on the level of the employee's performance and that employee's 
pay band. It is estimated that a vast majority of the workforce will 
qualify for an additional performance-based increase. However, under 
this provision, employees who perform below a satisfactory level will 
not receive an annual increase of either type. In addition, all 
compensation actions will be informed by the pending compensation 
study.

GAO now has the authority, in appropriate circumstances, to reimburse 
employees for some relocation expenses when transfers do not meet 
current legal requirements for entitlement to reimbursement but still 
benefit GAO. Under current law, employees who qualify for relocation 
benefits are entitled to full benefits; however, employees whose 
transfer may be of some benefit or value to the agency would not be 
eligible to receive any reimbursement. This provision would provide 
these employees some relief from the high cost of relocating while at 
the same time allowing GAO the flexibility to promulgate regulations in 
order to provide such relief. GAO now also has the authority to provide 
160 hours (20 10 leave to appropriate employees in certain positions 
who have less than 3 years of federal service. This is a necessary 
flexibility to aid in the recruitment and retention of highly skilled 
employees with little or no previous federal service. The authority to 
set the pay of an employee demoted as a result of workforce 
restructuring or reclassification at his or her current rate with no 
automatic annual increase to basic pay until the salary is less than 
the maximum rate for the new position will further the principle of 
equal pay for work of equal value over time.

The Comptroller General may now create an executive exchange program 
between GAO and the private sector. In skill areas where GAO has a 
supply-demand imbalance, judicious use of such a program will promote a 
healthy exchange of ideas, methods, and practices, which should prove 
beneficial to all concerned. Changing the name of the agency to the 
Government Accountability Office is intended to more accurately reflect 
the modern audit and evaluation entity GAO has become. At the same 
time, the well-known acronym "GAO," which has over 80 years of history 
behind it, will be maintained.

Possible Budgetary Constraints:

Given large current budget deficits and the nation's long-range fiscal 
imbalance, the Congress is likely to place increasing emphasis on 
fiscal restraint beginning in fiscal year 2005. While it is unclear as 
to how GAO will ultimately be affected, it is reasonable to assume that 
any attempt to exercise additional budgetary discipline will include 
GAO and other federal agencies. GAO must plan and prepare for the 
possibility of significant and recurring constraints on the resources 
made available to the agency. Since over 80 percent of our budget is 
composed of people-related costs, any serious budget situation will 
have an impact on our human capital policies and practices. This, in 
turn, will have an impact on our ability to accomplish our mission and 
meet our performance targets. Using our recent human capital 
flexibility as a framework, GAO would consider such options as 
conducting one or more early out offers, reviewing our policies and 
approaches to total compensation, delaying or reducing investments in 
discretionary programs that support the workforce, rethinking our 
current approach to hiring, and considering workforce restructuring 
actions on the basis of organizational need and budgetary 
considerations.

Human Capital Office Transformation:

GAO's Human Capital Office (HCO) has taken a number of steps to 
transform itself from a support function involved primarily in managing 
personnel processes to one that has the data and analytical tools 
necessary to assess GAO's workforce requirements, manage risk, and 
provide managers with the human capital services they require to attain 
GAO's strategic goals and objectives.

The agency has identified between 15 and 20 workforce performance 
indicators to track on a dashboard for comprehensive data reporting and 
benchmarking. Metrics are represented in a balanced scorecard for HCO. 
Senior GAO managers will have online access to unit-specific data such 
as attrition rates, offer acceptance rates, and new hire performance 
data.

For the first time, agency staff were surveyed on their satisfaction 
with the human capital information and services they receive. HCO is 
using the survey results to formulate a service improvement action 
plan, focusing on those services most important to GAO staff. 
Improvement efforts will be tracked through the office's balanced 
scorecard and publicized throughout the agency. Follow-up surveys will 
be conducted on an annual basis.

GAO is also looking internally at the organizational structure and 
skill base of HCO to identify changes necessary to become a more 
consultative, decision support organization. A number of our internal 
human capital processes have been reengineered to improve the 
timeliness of delivering services to GAO employees. For example, the 
number of calendar days to print and distribute personnel action 
notification forms (SF-50s) to staff decreased by an average of 80 
percent.

Over the last several years, GAO has undertaken a wide array of 
initiatives to improve its human capital strategies. Table 1 highlights 
a few of GAO's recent activities and accomplishments designed to 
address its human capital challenges. (See p. 12.):

Table 1: Selected GAO Human Capital Administrative Actions:

* Updated self-assessment of GAO's human capital profile to better 
understand the distribution of GAO's workforce by pay level, attrition 
rates, retirement eligibility rates, projected retirements, and ratios 
of managers to employees.

* Constructed and analyzed a detailed workforce planning model to 
ensure that GAO hired, retained, and contracted for the appropriate 
number of staff with the needed competencies.

* Developed certain "people measures" as part of GAO's balanced 
scorecard to assess GAO's performance in human capital management, 
including measures for attracting and retaining staff, staff 
utilization and development, and organizational leadership.

* Intensified recruiting efforts targeted at the entry level through 
aggressive college outreach and a streamlined application and hiring 
process using Web-based systems.

* Implemented a new competency-based performance management system for 
analysts and specialist staff that links individual employee 
performance to the accomplishment of GAO's strategic goals and 
objectives.

* Conducted annual employee feedback surveys to understand the status 
and progress of the agency's improvement efforts and employee 
satisfaction.

* Provided student loan repayment program of up to $6,000 per year for 
employees willing to commit to remaining with GAO at least 3 years.

* Conducted biannual knowledge and skills inventory survey (KSIS) using 
a Web-based tool to capture information about the knowledge and skills 
of the workforce for use in workforce planning and engagement staffing.

* Achieved an elected Employee Advisory Council to facilitate open 
communication and direct input from line employees to the Comptroller 
General and other senior leaders on a wide range of agency policies and 
programs including items such as workforce restructuring, performance-
based pay, and the employee preference survey.

* Conducted biannual employee preference surveys that give employees 
the opportunity to be considered for reassignment to enrich their 
skills and better accommodate personal interests while simultaneously 
meeting organizational needs and priorities.

* Implemented early out authority to meet budgetary constraints, 
correct skills imbalances, and help reduce the number of high-grade 
managerial and supervisory positions.

* Revitalized analysts' learning and development curriculum to address 
gaps in GAO's capacity for supporting analysts' core skills development 
and undertaking the executive candidate development program.

* Established the Office of Opportunity and Inclusiveness to oversee 
GAO's efforts to foster a work environment that is inclusive, fair, and 
unbiased and values opportunity and diversity.

* Implemented additional family-friendly benefits such as business 
casual dress and public transportation subsidies.

* Completed an agency organizational realignment, including eliminating 
a layer of management, reducing the number of organizational units, and 
closing 5 of 16 field offices, to enhance GAO's ability to achieve 
strategic goals and objectives.

* Established career transition services to provide confidential career 
transition services such as career assessment and planning, job search 
assistance, résumé and cover letter writing, and interviewing 
techniques.

* Established a professional development program (PDP) to help with the 
transition of, maximize the productivity of, enhance the job 
satisfaction of, and encourage the retention of newly hired, entry-
level staff.

* Developed knowledge transfer/retention program to transfer 
institutional and individual knowledge, as well as train and mentor 
less experienced employees until they are ready to assume higher-level 
duties, by reemploying selected retiring employees with key skills and 
knowledge for a temporary period without reducing their salary.

* Implemented an employee suggestion program that awards employees for 
suggestions on ways to improve GAO's performance and accountability.

* Continued GAO's Executive Candidate Assessment and Development 
Program to identify individuals at the GS-15/Band III level with 
potential to take on executive-level responsibilities and provide them 
with training to enhance their leadership skills.

Source: GAO.

[End of table]

The Strategic Environment:

GAO periodically scans the environment to identify current and emerging 
worldwide, national, and regional trends that have implications for the 
federal government and GAO's strategic priorities. A fuller 
understanding of the strategic environment that informed the 
development of this human capital strategy can be gained by accessing 
GAO's updated Strategic Plan for 2004-2006 on the agency's Web site at 
www.gao.gov. Some of the trends that are particularly significant in 
the context of strategic human capital management include the 
following:

National Environment:

* The national and global response to terrorism and other threats to 
personal and national security.

* The increasing interdependence of enterprises, economies, civil 
society, and national governments, referred to as "globalization.":

* The shift to market-oriented, knowledge-based economies.

* An aging and more diverse U.S. population.

* Advances in science and technology and the opportunities and 
challenges created by these changes.

* Challenges and opportunities to maintain and improve the quality of 
life for the nation, communities, families, and individuals.

* The increasingly diverse nature of governance structures and tools.

* Significant current and projected budget deficits.

Federal Environment:

As part of its transformation efforts, the federal government needs to 
create a culture that moves from:

* process to results,

* "stovepipes" to matrixes,

* hierarchical and vertical to flatter and more horizontal structures,

* an inward focus to an external (citizen, customer, and stakeholder) 
focus,

* micromanagement to employee empowerment,

* reactive behavior to proactive approaches,

* avoiding new technologies to embracing and leveraging them,

* hoarding knowledge to sharing knowledge,

* avoiding risk to managing risk, and,

* protecting "turf" to forming partnerships.

GAO:

* GAO has a commitment to lead by example and to be in the vanguard of 
the federal government's overall transformation efforts, including 
those in the critically important human capital area.

* GAO recognizes that its people are its most valuable asset.

* By managing its workforce strategically and focusing on achieving 
positive and measurable results, GAO is helping to maximize its own 
performance and ensure its own accountability.

* In light of achieving organizational results, GAO will continue to 
strengthen the link between individual performance and pay/recognition.

* GAO will revise its comprehensive training and development program to 
better target the competencies identified for its analyst workforce.

* GAO will continue to identify, make use of, and share a wide variety 
of tools and flexibilities to strengthen its human capital programs.

* GAO will continue to make efforts to improve its human capital 
management program in the following four overarching areas:

* Leadership.

* Strategic Human Capital Planning.

* Acquiring, Developing, and Retaining Talent.

* Creating a Results-Oriented Organizational Culture.

[End of section]

GAO'S STRATEGIC HUMAN CAPITAL MANAGEMENT PLAN: FOUR HUMAN CAPITAL 
CORNERSTONES:

Leadership:

Top leadership must provide the committed, consistent, and inspired 
attention needed to address human capital and related organizational 
transformation issues. An effective organization includes a senior 
leadership team committed to developing more-effective ways of doing 
business, accomplishing results, and investing in human capital. 
Perhaps the most important element of successful management reform is 
the demonstrated commitment of top leaders to change. The Comptroller 
General and GAO's top management team have clearly and consistently 
demonstrated their commitment to GAO's human capital transformation 
efforts.

To address current and emerging human capital challenges, GAO will 
continue to identify and implement targeted human capital flexibilities 
and reforms while assuring that adequate safeguards are incorporated to 
prevent abuse. For these flexibilities and reforms to be effective, GAO 
will obtain stakeholders' input to establish clear, well-documented, 
and transparent policies and procedures and will help ensure employees' 
input, understanding, and acceptance by communicating information on 
design implementation and the use of the flexibilities to all staff.

GAO's October 2000 human capital legislation gave the agency additional 
tools to realign its workforce in light of mission needs and overall 
budgetary constraints; to correct skills imbalances; and to reduce 
high-grade, managerial, or supervisory positions without reducing the 
overall number of GAO employees. This legislation allowed the agency to 
(1) create a technical and scientific career track at a compensation 
level comparable to that of the SES and (2) give greater consideration 
to performance and employee skills and knowledge in any RIF actions.

GAO has recently been granted additional human capital flexibility 
legislation to enable the agency to better manage its people. These 
flexibilities will, among other things, facilitate GAO's continuing 
efforts to recruit and retain top talent, develop a more-performance-
based compensation system, help realign its workforce, and facilitate 
its succession planning and knowledge transfer efforts.

To ensure that GAO has the workforce needed to accomplish its work for 
the Congress, the agency must have policies and practices in place that 
attract, retain, motivate, and reward top-quality staff. The following 
two key efforts focus on the implementation and evaluation of existing 
and potential human capital flexibilities. By undertaking these key 
efforts and related initiatives, GAO will enhance organizational 
performance by having a high-performing and skilled workforce in place 
to achieve GAO's strategic goals and objectives now and in the future.

Key Efforts:

Key Effort 1: Implement and evaluate the effectiveness of human capital 
flexibilities granted by Congress to assist GAO in managing our 
workforce:

Expected Outcomes:

* GAO's human capital flexibilities address known challenges of 
attracting, retaining, motivating, and rewarding a high-performing and 
skilled workforce.

* Adequate safeguards are in place to ensure that employees are treated 
consistently and fairly and that managers are held accountable.

* Managers and employees are familiar with GAO's human capital 
flexibilities and use them effectively.

Measures:

* Documented policies, procedures, and evaluation plan are available to 
all employees.

* Extent to which program objectives are met by implemented 
flexibilities.

* Employee feedback data.

Initiatives:

* Develop clear, documented, and transparent policies and procedures to 
implement approved flexibilities. (FY 2004-2006.):

* Educate managers and employees on the availability and appropriate 
use of approved flexibilities through new or ongoing communication 
mechanisms and management-training initiatives. (FY 2004-2006).

* Develop and implement a plan to evaluate the effectiveness of 
approved flexibilities. (FY 2005-2006).

[End of figure]

Key Effort 2: Continuously assess GAO's need for additional workforce 
flexibilities to enhance organizational human capital management and 
seek changes where appropriate:

Expected Outcomes:

* Business case requesting additional and/or modified workforce 
flexibilities linked to the accomplishment of organizational goals 
presented to Congress.

Measures:

* Analysis of emerging workforce challenges completed.

* Additional and/or refined workforce flexibilities identified.

Initiatives:

* Determine need for seeking additional flexibilities through ongoing 
analysis of emerging workforce challenges and evaluation results 
examining the effectiveness of implemented flexibilities. (Ongoing):

[End of figure]

Strategic Human Capital Planning:

Effective organizations integrate human capital approaches as 
strategies for accomplishing their mission and defined programmatic 
goals and desired outcomes. The effectiveness of this integration is 
judged by how well it helps achieve organizational goals. Furthermore, 
high-performing organizations stay alert to emerging mission demands 
and human capital challenges and remain open to reevaluating their 
human capital practices in light of their demonstrated successes or 
failures in achieving their strategic objectives.

The extent to which human capital approaches support the accomplishment 
of programmatic goals can be evaluated through the use of workforce 
planning. Workforce planning efforts, including succession planning 
linked to strategic goals and objectives, can enable an agency to 
remain aware of and be prepared for its current and future needs as an 
organization, such as the size of the workforce; its deployment across 
the organization; and the knowledge, skills, and abilities needed for 
the agency to pursue its mission.

To ensure that GAO more fully integrates its human capital policies, 
systems, and strategies for accomplishing its strategic objectives, the 
agency will continue to monitor and evaluate emerging mission demands 
and related human capital challenges through an annual workforce 
planning process. The workforce planning process will ensure that GAO 
hires, retains, or contracts for the appropriate number of staff with 
the competencies needed to achieve the agency's mission.

This planning will entail the collection of valid and reliable data on 
such indicators as the distribution of employee skills and 
competencies, attrition rates, and projected retirement rates and 
retirement eligibility by occupation and organizational unit. In 
addition to the following key efforts and supporting initiatives, GAO 
will use its organizationwide knowledge and skills inventory to 
identify current problems in its workforce and plan for future 
improvements.

Key Effort 3: Enhance GAO's strategic human capital planning efforts to 
more fully integrate them with the agency's strategic goals and 
objectives:

Expected Outcomes:

* An improved human capital planning process that enhances the ability 
to evaluate GAO's performance against established goals.

Measures:

* Size, shape, and competencies of the workforce meet targets necessary 
to achieve organizational goals.

* Each human capital initiative has a clearly defined goal.

* GAO units have the opportunity to provide input to the human capital 
strategic planning process.

Initiatives:

* Facilitate ongoing strategic human capital planning in support of 
annual updates to GAO's strategic plan. (Ongoing):

* Ensure that each human capital initiative has clearly defined goals 
and objectives that are linked to goals and objectives in GAO's 
strategic plan. (Ongoing):

[End of figure]

Key Effort 4: Use workforce planning to more closely align GAO's human 
capital assets with organizational needs and goals:

Expected Outcomes:

* Continued alignment of human capital resources with GAO's strategic 
goals and objectives.

Measures:

* GAO's target work force is defined in terms of size, shape, and 
competencies needed to accomplish organizational goals.

Initiatives:

* Align process for annual workforce planning and staffing needs 
assessment with goals outlined in GAO's strategic plan. (Ongoing):

* Integrate succession planning into overall workforce planning 
efforts. (FY 2005):

[End of figure]

Acquiring, Developing, and Retaining Talent:

GAO is committed to continuously improving recruiting, hiring, 
professional development, and retention strategies to ensure that it 
has the needed talent to accomplish its mission. Organizations that 
effectively embrace the principles of modern human capital management 
realize that as the value of their people increases, so does their 
performance capacity. They also realize that investing in and enhancing 
the value of employees is a win-win goal for employers and employees 
alike.

Strategies for investing in human capital need to be fully integrated 
with needs identified through the strategic planning process and the 
annual workforce planning process. The goals and expectations for these 
investments need to be transparent, clearly defined, and well 
documented, and their rationale must be consistent across the range of 
human capital programs. The efficiency of the investments needs to be 
continuously monitored, and the effectiveness should be periodically 
evaluated and reported.

In order to be a model organization, GAO is building and will maintain 
a diverse work environment that is conducive to performance excellence; 
encourages full participation by the workforce; and supports personal, 
professional, and organizational growth. GAO wants to be regarded as an 
employer of choice--one that recruits, develops, retains, and rewards 
high-quality employees and is considered one of America's best places 
to work. The following key efforts and supporting initiatives are 
designed to ensure success in this endeavor:

Key Efforts--Attracting and Retaining a High-Quality Workforce:

Key Effort 5: Examine state-of-the-art recruiting programs, identify 
best practices, and plan implementation of recommended actions to 
enhance GAO's hiring program:

Expected Outcomes:

* Continued ability to recruit, hire, and retain a highly skilled, 
diverse, and capable workforce.

Measures:

* Attrition and retention data.

* New hire survey data.

* Exit survey data (for interns and permanent hires).

* Employee feedback survey data.

* Candidate and new hire quality data.

Initiatives:

* Enhance GAO's hiring program by working with organizational units to 
develop strategies for identifying and acquiring staff with needed 
skills and competencies.

* Review the effectiveness of GAO's strategy to recruit, hire, and 
retain a broad spectrum of candidates for employment and recommend 
changes as appropriate. (Ongoing):

* Evaluate the impact and effectiveness of student loan repayment 
program designed to recruit and retain highly qualified employees with 
critical knowledge and skills. (FY 2004-2005):

* Use new flexibilities to remove barriers to addressing hard-to-fill 
hiring needs (e.g., additional leave for upperlevel hires, private-
sector exchange program, and reimbursement for relocation expenses. (FY 
2005):

[End of figure]

Key Effort 6: Identify and implement human capital sourcing strategies 
for addressing workforce gaps not to be met by hiring:

Expected Outcomes:

* Workforce gaps filled by a competent and cost-effective workforce 
solution other than hiring.

* Improved transfer of knowledge among GAO employees.

Measures:

* Return on investment analysis.

Initiatives:

* Study sourcing strategy options, including contracting out and the 
use of consultants, and make recommendations as appropriate. (FY 2005-
2006):

* Continue implementing and evaluating GAO's knowledge retention 
(phased retirement) program. (Ongoing):

* Continue implementing and evaluating the effectiveness of new 
flexibilities that allow GAO to establish senior level positions to 
meet critical scientific, technical, and professional needs. (Ongoing):

[End of figure]

Key Efforts--Developing the Skills and Competencies of GAO's Workforce:

Key Effort 7: Identify methods to improve staff development and 
utilization:

Expected Outcomes:

* Enhanced utilization and development of GAO staff, including entry-
level analysts.

* Increased ability to attract, retain, motivate, and reward a highly 
skilled, diverse, and capable workforce.

Measures:

* Employee satisfaction data on staff utilization.

* Percentage of staff working on matrix assignments.

Initiatives:

* Analyze and implement changes to the processes used to staff audit 
and evaluation engagements, including multitasking and matrix 
assignments. (FY 2004-2006):

* Enhance and modify the professional development program (PDP) in 
response to GAO's and new hires' changing needs. (FY 2005):

* Track and assess assignment and training opportunities given to 
individuals to assure that all staff are given the opportunity to 
maximize their performance and make recommendations as appropriate. (FY 
2005):

[End of figure]

Key Effort 8: Design and deliver a training and development program 
that focuses on GAO's core competencies and creates a unified learning 
architecture:

Expected Outcomes:

* Improved training and development program that prepares staff to 
achieve GAO's strategic goals.

* GAO will better leverage learning dollars by creating capability for 
desktop learning.

* GAO's learning expenditures will be better aligned with overall 
organizational strategy and performance goals.

* Supervisors are better prepared to create and sustain a productive 
work environment and to assume responsibility for developing staff.

* Save time and improve productivity, as more employees master 
practical applications of technology to carry out assigned tasks.

Measures:

* Employees are able to search current curricula by competency, grade 
level, topic, job title, role, and delivery mode.

* 25% of existing curricula content will be converted to allow Web-
based access.

* GAO can calculate the total cost of learning and prioritize spending 
to support specific competency goals.

* Every supervisor and manager has timely access to leadership support 
training.

Initiatives:

* Develop and communicate coherent, unified, role-based curricula that 
support development of the competencies identified in GAO's performance 
management system. (FY 2004):

* Provide GAO employees with "one-stop shopping" Web-based access to 
information on learning resources, enterprisewide. (FY 2004):

* Create a learning board as a means to develop organizationwide 
consensus on learning needs and prioritize learning investments. (FY 
2004):

* Design, develop, and deliver integrated leadership and management 
curricula that support GAO's values and carry out mission goals. (FY 
2005):

* Develop integrated technology curricula on working smarter (i.e., 
more productively) via available tools. (FY 2005):

[End of figure]

Key Efforts--Developing the Skills and Competencies of GAO's Workforce:

Key Effort: 9: Knowledge-sharing and knowledge-transfer strategy:

Expected Outcomes:

* Institutionalized processes for capturing, maintaining, and sharing 
institutional knowledge.

* Improved sharing of relevant information with all GAO employees.

* Capitalize on the intellectual assets of GAO.

Measures:

* Employees have timely access to clearly identified information 
repositories, reference services, and staff expertise.

* Employee feedback data on employee's awareness of knowledge 
collections and knowledge-sharing initiatives.

* Employee feedback data on whether GAO's workforce competencies meet 
targets necessary to achieve organizational goals.

Initiatives:

* Identify and explore strategies for enhancing organizational 
knowledge sharing and knowledge transfer. (Ongoing):

* Develop communications strategies for identifying and sharing 
information across GAO. (Ongoing):

* Incorporate subject matter expertise review as an active and visible 
part of GAO's annual needs assessment process for workforce planning 
and staffing. (Ongoing):

[End of figure]

Creating a Results-Oriented Organizational Culture:

GAO is committed to creating an organizational culture that promotes 
high performance, ensures accountability, and empowers and includes 
employees in setting and accomplishing programmatic goals. As in many 
cases in the human capital area, how an organization does something is 
as important as what it does. The involvement of employees both 
directly and through employee organizations is crucial to success. 
Involving employees in the planning process helps to develop agency 
goals and objectives that incorporate insight about operations from a 
front-line perspective.

Organizations that promote and achieve a diverse workplace can attract 
and retain high-quality employees and increase client and customer 
loyalty. In an effort to foster an environment that is responsive to 
the needs of diverse groups of employees, these organizations create a 
work environment that maximizes all employees' ability to fully 
contribute to the organization's mission. They also identify 
opportunities for resolving disputes fairly and efficiently and create 
a workplace free of discrimination.

GAO is also seeking to shift the orientation of individual performance 
expectations and accountability systems from an adherence to process 
and the completion of activities to a greater focus on individual 
contributions to organizational results. One way to embed a results 
orientation is to align individual employee performance expectations 
with agency goals so that individuals understand the connection between 
their daily activities and their organization's success.

To build a culture that promotes high performance and ensures 
accountability, GAO will continue involving employees in defining and 
accomplishing organizational goals and refining its compensation and 
performance management systems to more closely link rewards and 
recognition to employees' knowledge, skills, and contributions to 
organizational results. By involving employees directly and through 
GAO's Employee Advisory Council, the agency hopes to increase 
employees' understanding and acceptance of organizational goals and 
objectives and improve overall motivation and morale. GAO's ongoing 
commitment to fostering a workforce that is inclusive and draws on the 
strengths of employees at all levels and of all backgrounds will also 
contribute directly to mission accomplishment. GAO's efforts in all 
these areas are reflected in the following key efforts and initiatives: 
Creating a Results-Oriented Organizational Culture 25:

Key Efforts:

Key Effort 10: Promote an environment that is fair and unbiased, and 
values opportunity and inclusiveness:

Expected Outcomes:

* Enhanced work environment that recognizes and appreciates diversity 
and is free of bias.

* Improved family-friendly policies that help staff balance work and 
family lives.

* A more productive workforce.

* Enhanced ability to attract, retain, motivate, and reward a highly 
skilled, diverse, and capable staff.

Measures:

* Employee feedback data on satisfaction with work environment and 
family-friendly programs.

* Percentage of employees who concur that GAO's work environment is 
fair and unbiased.

* Employee feedback data on satisfaction with communications from 
senior leadership.

Initiatives:

* Monitor and recommend changes to GAO's human capital policies and 
practices to ensure that they are fair and unbiased and promote 
workplace excellence. (Ongoing):

* Identify artificial barriers that deter GAO employees from realizing 
their full potential and work with management officials to eliminate 
such barriers. (Ongoing):

* Improve GAO's tools and measures to assess GAO employee feedback. 
(Ongoing):

* Enhance senior leadership communications with GAO workforce (e.g., CG 
chat, etc.). (Ongoing):

* Enhance GAO's offerings of family-friendly and work life programs. 
(Ongoing):

* Undertake Tiny Findings Child Care facility expansion study. (FY 
2004-2005):

[End of figure]

Key Effort 11: Establish competency-based appraisal systems for all 
staff and make enhancements to these systems as needed:

Expected Outcomes:

* Enhanced appraisal systems that are perceived as fair and unbiased, 
and promote workplace excellence.

* Better alignment of individual employees' performance to GAO's 
strategic plan and core values.

* Workforce has candid and constructive information designed to 
maximize their individual potential and contributions to the agency.

* Management has the information needed to recognize and reward top 
performers and deal with poor performers.

Measures:

* Employee feedback data on satisfaction with the competency-based 
appraisal system.

* Evaluation of selected components of analyst/specialist competency-
based appraisal system.

* Appraisal data analysis.

Initiatives:

* Develop and implement competencybased appraisal system for 
Administrative, Professional, and Support Staff (APSS).

* Monitor and recommend changes to the competency-based appraisal 
systems.

[End of figure]

Key Efforts:

Key Effort 12: Establish performance-based compensation systems for all 
staff, and make enhancements to these systems as needed:

Expected Outcomes:

* Compensation systems that are directly linked to performance and 
results.

* Productive employees who are fairly compensated for their work.

* Enhanced performance-based compensation systems that are perceived as 
fair and unbiased, and promote workplace excellence.

Measures:

* Employee feedback data on satisfaction with performance-based 
compensation system.

* Employee compensation data.

* Assessment of GAO salaries versus market salaries.

Initiatives:

* Develop and implement broad banding for APSS and investigators. (FY 
2004):

* Develop and implement performance-based compensation system for APSS. 
(FY 2005):

* Monitor and recommend changes to performance-based compensation 
systems. (Ongoing):

* Conduct a market-based salary analysis to identify options for making 
changes to GAO's compensation system. (FY 2004-2005):

* Implement a new annual pay adjustment system that places greater 
emphasis on performance, while, at a minimum, protecting the purchasing 
power of employees who are performing at the "meets expectations" 
level. (FY 2005):

* Implement changes to GAO's awards and recognition programs on the 
basis of results of internal analysis and benchmarking the private and 
public sectors' best practices awards programs. (FY 2005):

[End of figure]

[End of section]

APPENDIX I--MEASURING GAO'S MANAGEMENT OF PEOPLE:

The following are excerpts from GAO's Performance Plan for Fiscal Year 
2005 focusing on our human capital performance measures. This plan and 
related GAO publications are available free of charge through our Web 
site at www.gao.gov/sp/sp.html.

Preliminary Performance Measures Related to People:

As our most important asset, our people determine our capacity to 
perform. Therefore, beginning with fiscal year 2005, we are adding 
performance measures that will help us determine how well we are 
acquiring, maintaining, and maximizing our human resources. Table 2 
describes the measures that we are using to assess our performance in 
this area. Each year, we will set an agencywide target for each of 
these measures. The information needed for these measures will come 
from a variety of sources, including the Department of Agriculture's 
National Finance Center database--which handles payroll and personnel 
data for GAO and other agencies--and our annual confidential survey of 
employees.

Table 2: Preliminary Measures Related to Our People:

Measure: New hire rate; 
Description: The ratio of the number of people hired to the number we 
planned to hire.

Measure: Acceptance rate; 
Description: The ratio of the number of applicants accepting offers to 
the number of offers made.

Measure: Retention rate[A]; 
Description: The ratio of the number of people who did not leave GAO 
during the fiscal year to the average number of people on board during 
the year.

Measure: Staff development; 
Description: From the annual employee survey, the percentage of people 
responding favorably to questions on internal, external, and on-the-job 
training.

Measure: Staff utilization; 
Description: From the annual employee survey, the percentage of people 
responding favorably to questions on our use of staff's knowledge and 
skills.

Measure: Leadership; 
Description: From the annual employee survey, the percentage of people 
responding favorably to questions about specific qualities of our 
managers, such as whether leaders treated staff fairly, made timely 
decisions, demonstrated GAO's core values, implemented change 
effectively, and dealt effectively with diversity issues.

Measure: Organizational climate; 
Description: From the annual employee survey, the percentage of people 
responding favorably to questions on teamwork, morale, and overall 
satisfaction.

Source: GAO.

Note: N/A indicates that the data are not available.

[A] Retention rate reflects all attrition, including retirement by 
approximately 5 percent of the workforce annually.

[End of table]

Agencywide Performance Related to Our People:

Table 3 reflects our agencywide performance during the last 2 fiscal 
years for our people measures, along with the agencywide targets for 
fiscal year 2005.

Table 3: Agencywide Annual Performance Results and Targets:

Performance measure: New hire rate; 
2002 Actual: 96%; 
2003 Actual: 98%; 
2004 Target: N/A; 
2005 Target: 97%.

Performance measure: Acceptance rate; 
2002 Actual: 81%; 
2003 Actual: 72%; 
2004 Target: N/A; 
2005 Target: 75%.

Performance measure: Retention rate; 
2002 Actual: 91%; 
2003 Actual: 92%; 
2004 Target: N/A; 
2005 Target: 90%.

Performance measure: Staff development; 
2002 Actual: 71%; 
2003 Actual: 72%; 
2004 Target: N/A; 
2005 Target: 70%.

Performance measure: Staff utilization; 
2002 Actual: 67%; 
2003 Actual: 71%; 
2004 Target: N/A; 
2005 Target: 70%.

Performance measure: Leadership; 
2002 Actual: 75%; 
2003 Actual: 78%; 
2004 Target: N/A; 
2005 Target: 75%.

Performance measure: Organizational climate; 
2002 Actual: 67%; 
2003 Actual: 71%; 
2004 Target: N/A; 
2005 Target: 70%.

Source: GAO.

Note: N/A indicates that data are not available.

[End of table]

Verification and Validation of Performance Data:

To assess our performance in fiscal year 2005, we plan to use 
performance data that are complete and actual (rather than projected) 
for all of our performance measures. We expect the data to be reliable 
because we will follow the verification and validation procedures 
described here to ensure the data's quality.

The specific sources of the data for our qualitative performance goals, 
procedures for independently verifying and validating these data, and 
the limitations of these data are described in table 4.

Table 4: How We Ensure Data Quality for Performance Measure Related to 
People:

New hire rate: Background and context: Annually, we develop a workforce 
plan that takes into account projected workload changes, as well as 
other changes such as retirements, other attrition, promotions, and 
skill gaps. The workforce plan for the upcoming year specifies the 
number of planned hires and, for each hire, specifies the skill type 
and the level. The plan is conveyed to each of our units to guide 
hiring throughout the year. Progress toward achieving the workforce 
plan is monitored continuously by the Chief Administrative Officer. 
Adjustments to the workforce plan are made throughout the year, if 
necessary, to reflect changing needs and conditions.

New hire rate: Data sources: The workforce plan is developed and 
maintained by the Chief Administrative Officer. Data on accessions-that 
is, new hires coming on board-is taken from the Department of 
Agriculture's National Finance Center database, which handles payroll 
and personnel data for GAO and other agencies.

New hire rate: Verification and validation: The Human Capital Office 
continuously monitors and reviews accessions and attritions against the 
contents of the National Finance Center's database. They follow up on 
any discrepancies. In addition, on a periodic basis, the IG 
independently examines our process for calculating the new hire rate. 
For example, the IG plans to examine this process during fiscal year 
2004.

New hire rate: Data limitations: There is a lag of one to two pay 
periods (up to 4 weeks) before the National Finance Center's database 
reflects actual data. We generally allow sufficient time before 
requesting data for this measure to ensure that we get accurate 
results.

Acceptance rate: Background and context: Acceptance rate is a proxy for 
GAO's attractiveness as an employer and an indicator of our 
competitiveness in bringing in new talent.

Acceptance rate: Data sources: The information required is the number 
of formal, written job offers made (excluding interns), the number of 
offers declined, and the number of individuals who come on board. Our 
Chief Administrative Officers' staff maintain a database that contains 
the job offers made and accepted or declined. The Department of 
Agriculture's National Finance Center maintains the database containing 
the data on the number of individuals who come on board.

Acceptance rate: Verification and validation: Human Capital Managers 
and the Human Capital Office work with the Chief Administrative Officer 
to assure that each formal, written job offer made and its outcome 
(declination or acceptance) are noted in the database that is 
maintained by the Chief Administrative Officer's staff; periodic 
checking is performed to review the accuracy of the database. In 
addition, on a periodic basis, the IG independently examines our 
process for calculating the acceptance rate. For example, the IG plans 
to examine this process during fiscal year 2004.

Acceptance rate: Data limitations: None.

Staff development, staff utilization, leadership, and organizational 
climate: Background and context: We strive to continuously improve our 
organization and our people in order to ensure that we remain a world-
class professional services organization. One way that we measure how 
well we are doing and identify areas for improvement is through our 
annual employee feedback survey. This Web-based survey, which is 
conducted by an outside contractor, is administered to all of our 
employees once a year.

Through the survey, we encourage our staff to indicate what they think 
about GAO's overall operations, work environment, and organizational 
culture and how they rate our managers-from the immediate supervisor to 
the executive committee-on key aspects of their leadership styles. The 
survey consists of over 100 statements to which staff are asked to 
indicate a response on a 5-point scale. Several questions address 
issues relating to staff development, staff utilization, leadership, 
and organizational climate.

Staff development, staff utilization, leadership, and organizational 
climate: Data sources: These data come from our staff's responses to an 
annual Web-based survey. The survey includes 21 questions that are 
rolled up into the measures of staff development (3 questions), staff 
utilization (3 questions), leadership (10 questions), and 
organizational climate (5 questions). From the staff who expressed an 
opinion, we calculate the percentage of staff selecting the two 
categories that indicate satisfaction with or a favorable response to 
the statement. For example, to measure organizational climate, we 
looked at the responses to five statements: I am treated fairly and 
with respect in my work unit; overall, I am satisfied with my job at 
GAO; sufficient effort is made in my work unit to get the opinions and 
thinking of people who work here; a spirit of cooperation and teamwork 
exists in my work unit; and my morale is good. For each question, we 
calculated the percentage of respondents that indicated they generally 
agreed or strongly agreed with the statement. We then averaged the 5 
percentages to obtain the composite percentage by which we measure 
satisfaction with our organizational climate.

Staff development, staff utilization, leadership, and organizational 
climate: Verification and validation: The employee feedback survey 
gathers staff opinions on a variety of topics. The survey is password 
protected, and only the outside contractor has access to passwords. In 
addition, when the survey instrument was developed, extensive focus 
groups and pretests were undertaken to refine the questions and provide 
definitions as needed. We have historically achieved a high response 
rate (over 85%) to the survey, which indicates that its results are 
largely representative of the GAO population. In addition, many teams 
and work units conduct follow-on work to gain a better understanding of 
the information from the survey.

In addition, on a periodic basis, the IG independently examines our 
process for calculating the percentages for staff development, staff 
utilization, leadership, and organizational climate. For example, the 
IG plans to examine this process during fiscal year 2004.

Staff development, staff utilization, leadership, and organizational 
climate: Data limitations: The information contained in the survey is 
self-contained and, therefore, there is no information to validate the 
views expressed by staff. We do not plan any actions to remedy this 
limitation because we feel it would violate the pledge of 
confidentiality that we make to our staff regarding the survey 
responses.

Source: GAO.

[End of table]

[End of section]

Photos:

Front Cover: GAO staff; 
Source: GAO.

U.S. Flag; 
Source: Photo Disc.

Inside Front Cover:
U.S. Capitol Rotunda; 
Source: Corbis.

Message from the Comptroller General:
David M. Walker; 
Source: GAO.

Page 2:
U.S. Capitol; 
Source: GAO.

Page 4:
Photo and GAO staff; 
Source: GAO.

Page 15:
Leadership (pp. 15 and 16); 
Source: Corbis.

Strategic Human Capital Planning (pp. 15 and 18); 
Source: Comstock.

Acquiring, Developing, and Retaining Talent (pp. 15 and 20); 
Source: Photo Disc.

Creating a Results-Oriented Organizational Culture (pp. 15 and 24); 
Source: Photo Disc.

Inside Back Cover:
U.S. Flag and Capitol; 
Source: GAO.

Back Cover:
U.S. Capitol; 
Source: GAO.

GAO Logo; 
Source: GAO.

U.S. Flag; 
Source: Photo Disc.

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