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Unfortunately, U.S. government has a poor track record in adapting to new conditions and meeting new challenges. Much of the federal government remains overly bureaucratic, hierarchical, myopic and narrowly focused. Agencies continue to cling to outmoded organizational structures and strategies. They have also been slow to adopt best practices. Another problem is that much of government is geared toward social, economic and national security conditions from the 1950s and 1960s.

To stay aligned with the needs of current and future generations of Americans, our government needs to rethink what it does, how it does business and who should do that business--federal workers, contractors, or some combination of the two. In my view, human capital reform must be central to these transformation efforts. This article examines how the U.S. Government Accountability Office (GAO) is seeking to lead by example when it comes to human capital reforms. Although the agency has undertaken these changes to better position itself for the future, the agency believes that its experiences may hold valuable lessons for other federal departments and agencies that are seeking to make their operations more efficient and results oriented.

The central idea behind human capital theory is that employees are an asset whose value can be enhanced through investments in training, technology, incentives and other areas. To be truly effective, however, human capital policies cannot exist in isolation. They need to be linked to an organization's mission, core values, vision for the future, specific goals and objectives and current and expected resource levels.

The simple truth is that any organization is only as good as its people. Therefore, effective government requires a first-rate workforce. Given the scope and breadth of the federal government--arguably the largest, the most diverse, and the most complex entity on earth--we can afford nothing less than top talent in key government posts.

Unfortunately, too many federal agencies lack enough people with the right skills and a sense of stewardship. In addition, the civil service is aging: Large numbers of federal executives and managers are expected to retire in the coming years. Despite these demographic trends, too few agencies have succession plans in place.

At the same time, the government faces stiff competition for top talent. Sought-after prospective hires can be highly selective when it comes to job offers. To be attractive, federal positions must offer opportunities to do meaningful work that is both recognized and rewarded.

In so many areas, however--recruiting, training and development, job classification, pay and benefits, and employee empowerment--the federal government typically lags other sectors. Many federal personnel practices date back to the 1940s and 1950s. For example, the prevailing General Schedule (GS) pay scale tends to reward time in grade rather than performance on the job. In addition, the hiring process for many federal jobs can be...

NOTE: All illustrations and photos have been removed from this article.




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