Human Capital Issues rank high among CEOs' key challenges, in fact, five of their top seven priorities relate to human capital in general and to leadership in particular."

Definition

The Strategic Alignment system focuses on having a human capital strategy aligned with mission, goals, and organizational objectives.

A system led by senior management, typically the Chief Human Capital Officer (CHCO), that promotes alignment of human capital management strategies with agency mission, goals, and objectives through analysis, planning, investment, measurement, and management of human capital programs.

Standard

Agency 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

Each system is based on critical success factors that make up the overall system. Critical success factors are the areas on which agencies and human capital practitioners should focus to achieve a system's standard for success and operate efficiently, effectively, and in compliance with merit system principles. The Strategic Alignment system is comprised of the following critical success factors:

• Human Capital Planning
• Workforce Planning
• Human Capital Best Practices and Knowledge Sharing
• Human Resources as Strategic Partner

Each critical success factor has several key elements that indicate effectiveness and are linked to suggested indicators that identify how well the agency is doing relative to key elements.

Applicable Merit System Principles

The following merit system principle is especially relevant to the Strategic Alignment system:

• The Federal work force should be used efficiently and effectively. (5 U.S.C. 2301(b)(5))

Activities and outcomes of this system are assessed through documented evidence of a Strategic Human Capital Plan that includes human capital goals, objectives, and strategies; a workforce plan; and performance measures and milestones.

Agencies are required under OPM regulations implementing the CHCO Act to submit the Strategic Human Capital Plan described by this system to OPM on an annual basis.

Human Capital Planning Critical Success Factor

Definition: The agency designs a coherent framework of human capital policies, programs, and practices to achieve human capital requirements to directly support the agency's strategic plan.

When the key elements of the critical success factor Human Capital Planning are effectively implemented, agencies will realize the following results. View the key elements and suggested performance indicators for this critical success factor.

Effectiveness Results

• The agency's strategic plan establishes an agency-wide vision that guides human capital planning and investment activities.
• The agency has a system in place to continually assess and improve human capital planning and investment and their impact on mission accomplishments.
• Managers are held accountable for effective implementation of human capital plans and overall human capital management.

Compliance Result

In accordance with the Chief Human Capital Officers Act of 2002 (CHCO Act), the agency CHCO carries out the functions authorized in 5 U.S.C. 1402, including aligning the agency's human resources policies and programs with organizational mission, strategic goals, and performance outcomes.

Workforce Planning Critical Success Factor

Definition: The organization identifies the human capital required to meet organizational goals, conducts analyses to identify competency gaps, develops strategies to address human capital needs and close competency gaps, and ensures the organization is appropriately structured.

When the key elements of the critical success factor Workforce Planning are effectively implemented, agencies will realize the following results. View the key elements and suggested performance indicators for this critical success factor.

Effectiveness Results

• The agency approaches workforce planning strategically and in an explicit, documented manner. The workforce plan links directly to the agency's strategic and annual performance plans and is used to make decisions about structuring and deploying the workforce.
• Mission-critical occupations and competencies are identified and documented, providing a baseline of information for the agency to develop strategies to recruit, develop, and retain talent needed for program performance.
• The agency's documented workforce plan identifies current and future workforce competencies and the agency is closing identified competency gaps through implementation of gap reduction strategies such as:
  • Restructuring
  • Recruitment
  • Competitive sourcing
  • Redeployment
  • Retraining
  • Retention (e.g., compensation, quality of work life)
  • Technology solutions.
• A business forecasting process is implemented that identifies probable workforce changes, enabling agency leadership to anticipate changes to human capital that require action to ensure program performance.
• Based on functional analyses, the agency is appropriately structured to allow the right mix and distribution of the workforce to best support the agency mission.
• Based on analysis of customer needs and workload distribution, the agency has the right balance of supervisory and non-supervisory positions to support the agency mission.

Compliance Result

The CHCO assesses workforce characteristics and future needs based on the agency's mission and strategic plan in accordance with the CHCO Act of 2002 (5 U.S.C. 1402).

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Definition

To leverage its efforts, the agency works with others to share best practices and learn about new developments.

When the key elements of the critical success factor Human Capital Best Practices and Knowledge Sharing are effectively implemented, agencies will realize the following results:

Effectiveness Result

The agency looks beyond its own experience and resources when developing human capital strategies and works with others to share best practices.

Compliance Result

As provided in 5 U.S.C. 1103(c), the agency holds managers and human resources officers accountable for efficient and effective human resources management in support of the agency's mission in accordance with merit system principles.

Definition

Human resources (HR) professionals act as consultants with managers to develop, implement, and assess human capital policies and practices to achieve the organization's shared vision. Senior leaders, managers, HR professionals, and key stakeholders contribute to the human capital vision and the agency's broader strategic planning process.

When the key elements of the critical success factor Human Resources as Strategic Partner are effectively implemented, agencies will realize the following results:

Effectiveness Results

• HR professionals and key stakeholders are involved in the agency strategic and workforce planning efforts.
• The HR function is adequately staffed and prepared, in competencies and resources, to proactively partner and consult with line managers.
• The HR staff reaches out to other organizational functions and components through facilitation, coordination, and counseling to provide integrated mission support.

Compliance Result

As provided by 5 U.S.C. 1103(c), the agency holds managers and human resources officers accountable for efficient and effective human resources management in support of the agency's mission in accordance with merit system principles.

Human Capital Planning

• Key Components of a Strategic Human Capital Plan
• Promoting a Participatory Approach in Human Capital Planning

Workforce Planning

• Enterprise Human Resources
• OPM's Workforce Planning Model

Human Capital Best Practices and Knowledge Sharing

• Benchmarking

Human Resources as Strategic Partner

• Customer Service Survey Instrument
• HR Strategy Survey Instrument for Key Leaders
• Federal Human Capital Survey (FHCS): Questions Related to the Strategic Alignment System

Web Links

• Chief Human Capital Act of 2002 (5 U.S.C. 1304)