Strategic Management of Human Capital FY04 Implementing Projects Risk Management Agency FY 2004 This presentation will highlight and summarize the progress of Strategic Human Capital Management in FFAS through the first three quarters of FY03. It will address: The Mission Area status relative to the OMB Executive Branch Management Scorecard The Mission Area status relative to the FFAS Human Capital Plan Goals; and The current and future Human Capital strategies to support the Department to get to YELLOW by July 04 … (next slide)

Strategic Management of Human Capital AGENCY Strategic Plan - Mission and Goals Strategic Management of Human Capital - Goals Strategic Alignment Workforce Planning & Deployment Leadership & Knowledge Management Results - Oriented Performance Culture Talent Accountability After a year of applying the Executive Branch Management Scorecard as a means of measuring progress of the President’s Management Agenda, the latest USDA results for Strategic Management of Human Capital are depicted: USDA has been GREEN (jumping from RED) in Progress over the last three quarters of FY03. This is due, in part, to: The USDA development and implementation of the Human Capital Plan (FFAS was co-chair in its development and coordination) The completion of a Department wide Skills Analysis where 21 Mission Critical Occupations were identified with concerning Skills Gaps; one of them includes the Farm Loan Officers (1165 series) However, USDA remains RED in overall Status as OMB cites: A need for the development and implementation of workforce restructuring plans for all departmental agencies. A need to link individual performance to mission accomplishment; and increase recognition of top performers. A need to demonstrate progress in implementing the Human Capital Plan in all departmental agencies. Let’s look at the goals status of the Human Capital Plan for FFAS…. (next slide) IMPLEMENTING PROJECTS

IMPLEMENTING PROJECTS Strategic Management of Human Capital GOAL 1 Strategic Alignment - Agency human capital strategy is aligned with mission, goals, and organizational objectives and integrated into its strategic plans, performance plans, and budgets. IMPLEMENTING PROJECTS The FFAS Human Capital Plan is linked to the Strategic Plan of the Department, and subsequently, RMA, FSA and FAS. The Human Capital Plan also addresses each of OMB criteria used for the Executive Branch Management Scorecard. The FFAS Human Capital Plan identifies 28 strategies within the 9 Goals in the plan, each to be implemented according to a defined timeline. According to OMB, the Department’s Scorecard will go from RED to YELLOW to GREEN as its agencies implement the Human Capital Plan, because it meets the OMB Scorecard criteria and OMB’s Human Capital Standards of Success. A self assessment of FFAS’ FY04 3rd Quarter status is indicated by this graph. The portion of the circle colored GREEN reflects the Completed and On-Going strategies and the YELLOW portion reflects those in satisfactory progress. Status of each of the our goal areas can be reviewed from the OMB perspective …. (next slide) Include Human Capital elements in RMA Strategic Plan and FY06 Budget Performance, e.g., Reduce time to fill vacancies, enhance diversity, close skills gaps Meet with Human Capital Council quarterly to review progress of projects

IMPLEMENTING PROJECTS Strategic Management of Human Capital GOAL 2 WORKFORCE PLANNING and DEPLOYMENT - Agency is citizen-centered, delayered and mission-focused , and leverages e-Government and competitive sourcing. IMPLEMENTING PROJECTS The FFAS Human Capital Plan is linked to the Strategic Plan of the Department, and subsequently, RMA, FSA and FAS. The Human Capital Plan also addresses each of OMB criteria used for the Executive Branch Management Scorecard. The FFAS Human Capital Plan identifies 28 strategies within the 9 Goals in the plan, each to be implemented according to a defined timeline. According to OMB, the Department’s Scorecard will go from RED to YELLOW to GREEN as its agencies implement the Human Capital Plan, because it meets the OMB Scorecard criteria and OMB’s Human Capital Standards of Success. A self assessment of FFAS’ FY04 3rd Quarter status is indicated by this graph. The portion of the circle colored GREEN reflects the Completed and On-Going strategies and the YELLOW portion reflects those in satisfactory progress. Status of each of the our goal areas can be reviewed from the OMB perspective …. (next slide) Support IT reorganization Support 1010

IMPLEMENTING PROJECTS Strategic Management of Human Capital GOAL 3 LEADERSHIP and KNOWLEDGE MANAGEMENT - Agency leaders and managers effectively manage people, ensure continuity of leadership, and sustain a learning environment that drives continuous improvement in performance. IMPLEMENTING PROJECTS Examine need for general Supervisor Training Program, i.e., New Supervisor Training Program or need for more ‘tailored’ programs. Consider/examine leadership training programs to ensure a ’back-up pools’ Continue HR service visits to customers, e.g., supporting Speed In Business The FFAS Human Capital Plan is linked to the Strategic Plan of the Department, and subsequently, RMA, FSA and FAS. The Human Capital Plan also addresses each of OMB criteria used for the Executive Branch Management Scorecard. The FFAS Human Capital Plan identifies 28 strategies within the 9 Goals in the plan, each to be implemented according to a defined timeline. According to OMB, the Department’s Scorecard will go from RED to YELLOW to GREEN as its agencies implement the Human Capital Plan, because it meets the OMB Scorecard criteria and OMB’s Human Capital Standards of Success. A self assessment of FFAS’ FY04 3rd Quarter status is indicated by this graph. The portion of the circle colored GREEN reflects the Completed and On-Going strategies and the YELLOW portion reflects those in satisfactory progress. Status of each of the our goal areas can be reviewed from the OMB perspective …. (next slide)

IMPLEMENTING PROJECTS Strategic Management of Human Capital GOAL 4 RESULTS-ORIENTED PERFORMANCE CULTURE - Agency has a diverse, results-oriented, high performance workforce, and has a performance management system that differentiates between high and low performance, and links individual/team/unit performance to organizational goals and desired results. IMPLEMENTING PROJECTS Link specific Strategic Plan goals and indicators to 100% of SES and Managers (GS-14 and above) to Individual Performance Plans by July 2004 Link 60+% of workforce's Individual Performance Plans to Agency Strategic Plan goals and indicators by July 2005 Implement HR Client Satisfaction Survey; and develop and implement action plans based survey results Review RMA Honesty & Integrity (ethics) practices/perceptions and make recommendations, e.g., awareness training, etc. Encourage leaders to review the FY 2002 Federal Human Capital Survey (OPM) results and provide recommendations, for example: Only 28% of RMA employees claim that leaders generate high levels of motivation and commitment in the workforce (Leadership) Only 24% of RMA employees claim that the organization's awards program provides them with an incentive to do their best (Performance Culture) The FFAS Human Capital Plan is linked to the Strategic Plan of the Department, and subsequently, RMA, FSA and FAS. The Human Capital Plan also addresses each of OMB criteria used for the Executive Branch Management Scorecard. The FFAS Human Capital Plan identifies 28 strategies within the 9 Goals in the plan, each to be implemented according to a defined timeline. According to OMB, the Department’s Scorecard will go from RED to YELLOW to GREEN as its agencies implement the Human Capital Plan, because it meets the OMB Scorecard criteria and OMB’s Human Capital Standards of Success. A self assessment of FFAS’ FY04 3rd Quarter status is indicated by this graph. The portion of the circle colored GREEN reflects the Completed and On-Going strategies and the YELLOW portion reflects those in satisfactory progress. Status of each of the our goal areas can be reviewed from the OMB perspective …. (next slide)

IMPLEMENTING PROJECTS Strategic Management of Human Capital GOAL 5 TALENT - Agency has closed most mission-critical skills, knowledge and competency gaps/deficiencies, and has made meaningful progress toward closing all. IMPLEMENTING PROJECTS Review Workforce Analysis to identify major trends and to drive Recruitment, Retention, Training and Diversity Strategies Maximize use of Career Intern Program, Co-op Program, etc. Implement Quick Hire and evaluate use of Quick Class Provide more web-based training Implement Exit Interview and Placement Follow-up systems Assess cost/benefit of Pay Banding, Pay Flexibilities , e.g., demonstration projects The FFAS Human Capital Plan is linked to the Strategic Plan of the Department, and subsequently, RMA, FSA and FAS. The Human Capital Plan also addresses each of OMB criteria used for the Executive Branch Management Scorecard. The FFAS Human Capital Plan identifies 28 strategies within the 9 Goals in the plan, each to be implemented according to a defined timeline. According to OMB, the Department’s Scorecard will go from RED to YELLOW to GREEN as its agencies implement the Human Capital Plan, because it meets the OMB Scorecard criteria and OMB’s Human Capital Standards of Success. A self assessment of FFAS’ FY04 3rd Quarter status is indicated by this graph. The portion of the circle colored GREEN reflects the Completed and On-Going strategies and the YELLOW portion reflects those in satisfactory progress. Status of each of the our goal areas can be reviewed from the OMB perspective …. (next slide)

IMPLEMENTING PROJECTS Strategic Management of Human Capital GOAL 6 ACCOUNTABILITY - Agency human capital decisions are guided by a data-driven results-oriented planning and accountability system. IMPLEMENTING PROJECTS Provide quarterly performance reports and analysis of pertinent HR metrics, e.g., exit interview summary, time to fill vacancy, HR service level, quality of new hire, etc. Ensure effective and efficient HR processes The FFAS Human Capital Plan is linked to the Strategic Plan of the Department, and subsequently, RMA, FSA and FAS. The Human Capital Plan also addresses each of OMB criteria used for the Executive Branch Management Scorecard. The FFAS Human Capital Plan identifies 28 strategies within the 9 Goals in the plan, each to be implemented according to a defined timeline. According to OMB, the Department’s Scorecard will go from RED to YELLOW to GREEN as its agencies implement the Human Capital Plan, because it meets the OMB Scorecard criteria and OMB’s Human Capital Standards of Success. A self assessment of FFAS’ FY04 3rd Quarter status is indicated by this graph. The portion of the circle colored GREEN reflects the Completed and On-Going strategies and the YELLOW portion reflects those in satisfactory progress. Status of each of the our goal areas can be reviewed from the OMB perspective …. (next slide)

Strategic Management of Human Capital Planning the Future In closing, OPM just recently released the results to the Federal Human Capital Survey. That survey isolated our employee responses to key areas of our Human Capital Plan, such as Leadership and Performance. You can see that about half of the responses are POSITIVE and a quarter are NEGATIVE. As we begin to evaluate these results, we can see a need to improve individual performance and further develop our leaders. It will become evident that the majority of improvement opportunities identified in the survey will parallel those in the Human Capital Plan. The support from the Mission Area is crucial to the future effectiveness of the agencies that make up the team. …….Paraphrase the boxes and ask for comments. End Presentation