Seven Steps On Effective Workforce Planning

providing cutting-edge
knowledge to
government leaders Seven Steps of Effective

Workforce Planning
Human Capital Management Series
Ann Cotten
Author information
Director
goes here
Schaefer Center for Public Policy
University of Baltimore
2007 H u m a n Ca p i ta l M a n ag e m e n t s e r i e s
Seven Steps of Effective

Workforce Planning
Ann Cotten
Director
TA B LE O F C O NTENT S
Foreword...............................................................................................4
Executive Summary...............................................................................6
Why Workforce Planning Is Important..................................................9
The Changing Nature of the Public Sector Workforce.....................9
The Seven-Step Workforce Planning Model........................................13
Step 1: Define the Organization’s Strategic Direction...................14
Step 2: Scan the Internal and External Environments....................14
Step 3: Model the Current Workforce...........................................15
Step 4: Assess Future Workforce Needs and Project
Future Workforce Supply........................................................16
Step 5: Identify Gaps and Develop Gap-Closing Strategies...........18
Step 6: Implement Gap-Closing Strategies....................................21
Step 7: Evaluate the Effectiveness of Gap-Closing
Strategies and Revise Strategies as Needed.............................21
Summary......................................................................................22
Workforce Planning at the U.S. Department of Transportation...........24
Human Capital Management Mandated at
the Federal Level....................................................................24
The Department of Transportation and
the Seven-Step Model.............................................................25
Workforce Planning Successes.....................................................30
Success Factors.............................................................................31
Challenges ..................................................................................31
Lessons Learned...........................................................................32
Summary......................................................................................32
Workforce Planning at the Maryland State
Highway Administration......................................................................33
SHA’s Workforce Planning Environment.......................................33
Workforce Planning in Maryland..................................................33
The Evolution of Workforce Planning at SHA...............................35
Vision for Workforce Planning......................................................36
SHA’s Workforce Planning Model.................................................36
State Highway Administration and
the Seven-Step Model.............................................................43
Workforce Planning Successes.....................................................45
Success Factors.............................................................................45
Challenges....................................................................................46
Lessons Learned...........................................................................46
Summary......................................................................................47

Implementing Workforce Planning: Recommendations......................48
Recommendations for Agency Leaders and HR Directors.............48
Conclusion...................................................................................51
Acknowledgments...............................................................................52
Appendices.........................................................................................53
Appendix I: The Relationship Among the
HCAAF Systems......................................................................53
Appendix II: The Federal Workforce
Planning Model......................................................................54
Appendix III: U.S. Department of Transportation’s
Succession Planning Model....................................................56
Appendix IV: Suggested Strategic Workforce
Planning Performance Measures.............................................58
Endnotes.............................................................................................60
References..........................................................................................63
About the Author................................................................................66
Key Contact Information.....................................................................67

Seven Steps of effective workforce planning
F o r e wo r d
On behalf of the IBM Center for The Business of Government, we are

pleased to present this report, “Seven Steps of Effective Workforce
Planning,” by Ann Cotten, director of the Schaefer Center for Public
Policy at the University of Baltimore.
Successful private and public sector organizations must have robust

human capital strategies that enable organizations to meet current and
future business needs. Human capital strategies typically focus on work-
force planning, talent management, succession planning, leadership,
knowledge management, performance management, and accountability.
Albert Morales
Perhaps the most critical of these strategies is workforce planning.
Workforce planning tells an organization what types of skills are
needed to get the job done. In doing so, workforce planning should
drive all human capital strategies. Workforce planning is about aligning
an organization’s human capital—its people—with its business plan to
achieve its mission. It helps ensure that the organization has the right
people with the right skills in the right job at the right time.
This report introduces the Seven-Step Workforce Planning Model,

which provides a sound framework for understanding the basic
elements of workforce planning. The model incorporates workforce
planning concepts from two organizations: the International Public
Management Association for Human Resources and the Office of
Personnel Management. The report walks the reader through the steps Solly Thomas
involved in workforce planning, including defining the organization’s
strategic direction; identifying current and future workforce needs;
determining gaps; implementing strategies to close these gaps; and
monitoring, evaluating, and revising the gap-closing strategies.
IBM Center for The Business of Government

Using the Seven-Step Workforce Planning Model as an analytical

framework, Dr. Cotten presents two case studies of workforce plan-
ning efforts in public sector organizations: the U.S. Department of
Transportation and the Maryland State Highway Administration. She
describes the challenges, success factors, and lessons learned from
these two case studies.
The report also provides agency leaders and human resources directors
with recommendations for successful workforce planning. Finally, the
report identifies suggested strategic workforce planning performance
measures—related to recruitment, employee retention, training and
development, and management of employee performance.
We hope this report will be a useful tool to guide agency leaders and
human resources directors through the workforce planning process.
Albert Morales Solly Thomas

Managing Partner Associate Partner, Human Capital Practice
IBM Center for The Business of Government IBM Global Business Services
[email protected] [email protected]
www.businessofgovernment.org
E x e cu t i v e S u m m a r y
Human capital emphasizes the strategic importance view employees, as well as consultants, temporary
of an organization’s workforce. In the knowledge staff, and third-party partners, as a pool of talent to
economy, the collective set of knowledge, skills, be configured and developed strategically to create
abilities, and competencies—the human capital— the most public benefit in the most efficient man-
residing in an organization’s workforce is arguably ner. By taking a more strategic and longer view of
the most important determinant of an organization’s the organization’s goals and staffing needs, the
ability to sustain long-term success. organization can put into place a plan to build its
desired workforce one position at a time.
The U.S. public sector is facing human capital chal-
lenges much like the private sector: Workforce planning, a key component of strategic
human capital management, is about aligning an
• Large numbers of skilled employees are nearing organization’s human capital—its people—with its
retirement. business plan to achieve its mission; in other words,
ensuring that an organization currently has and will
• Competition for the remaining skilled employ-
continue to have the right people with the right skills
ees is growing.
in the right job at the right time performing their
• Diversity in the workforce is increasing both assignments efficiently and effectively. This report
ethnically and generationally, making manage- introduces the Seven-Step Model of Workforce
ment more challenging. Planning; applies the model to two case studies—
one federal and one state; and offers agency leaders
• Expectations among Generation-X and
and human resource managers guidance on imple-
Generation-Y workers regarding responsibility
menting workforce planning in their organization.
and work/life balance are dramatically different
from their predecessors.
The Seven Steps of Effective Workforce Planning are:
These common challenges are exacerbated in the
1. Define the organization’s strategic direction
public sector by an insufficient supply of talent in
the leadership pipeline; downsizing; hiring restric- 2. Scan the internal and external environments
tions; and HR systems and policies that are not able
3. Model the current workforce
to respond quickly to changes in the labor force and
the internal and external environments. 4. Assess future workforce needs and project
future workforce supply
While public agencies at the local, state, and fed-
5. Identify gaps and develop gap-closing
eral levels have embraced outcome-oriented man-
strategies
agement and performance measurement, a much
smaller proportion has taken the next step of embrac- 6. Implement gap-closing strategies
ing strategic human capital management. A strategic
7. Evaluate the effectiveness of gap-closing
human capital focus calls for the public sector to
strategies and revise strategies as needed

U.S. Department of Transportation There are three lessons to be learned from the
DOT case:
Case Study
The federal case study discusses the U.S. Department Lesson 1: Sharing workforce planning resources,
of Transportation’s (DOT) workforce efforts. This tools, and techniques among various agencies
case provides insight into the workforce planning speeds the implementation of workforce planning.
processes of an organization that is required to engage
Lesson 2: Time and budget constraints can be signif-
in workforce planning, is supported by the Office of
icant barriers to implementation.
Personnel Management and the Office of Manage-
ment and Budget, and has dedicated staff resources Lesson 3: Forecasts are useful in projecting likely
for planning and implementation. DOT was one of scenarios.
the first federal agencies to be certified as meeting
the human capital milestones of the President’s
Management Agenda.
The Maryland State Highway
Administration
Key factors in DOT’s success were: The state government case study discusses the
Maryland State Highway Administration’s (SHA)
• OPM support of the implementation of the workforce planning efforts. This case provides insight
human capital initiative with guidelines and into how workforce planning can be implemented
access to accurate and timely employee data when it is an outgrowth of an organization’s overall
• Centralized data collection about employee atti- management improvement initiative. This example
tudes through the federal employees’ Human also demonstrates what can be achieved when work-
Capital Survey force planning is not mandatory, not centrally funded,
and not centrally supported.
• The creation of the Chief Human Capital Officer
position, a senior executive dedicated to leading Key factors in SHA’s success were:
human capital initiatives
• The ability to share data, tools, and experiences • Strategic leadership of the workforce planning
with other federal agencies initiative at the highest levels of the organization
• An organization-wide human capital plan that • Staff-level champions for each topical area who
offered flexibility for the individual administra- were willing to become the resident subject-
tions to identify their own human capital gaps matter expert
and implement their own strategies • Widespread participation in the workforce
• The establishment of a human capital council planning project by managers and employees
working group that addresses key workforce • The ability of workforce planning to bring
planning issues that cut across the department together a series of seemingly unrelated initia-
• The implementation of the workforce analysis tives into a cohesive plan
system/civilian forecasting tool to their operat-
ing administrations in order to forecast their SHA’s major workforce planning challenges were:
mission-critical occupations (MCOs)
• A lack of comprehensive data sets needed to
Key challenges to DOT’s workforce planning engage in effective workforce planning
efforts were: • Insufficient resources to engage in workforce
planning
• The lack of sufficient time and resources to
address all of the identified staffing gaps • The absence of a clear workforce planning
model at the start of the planning process
• As in the case of many federal agencies, a
shrinking talent pool and increased competition
for talent
Four key lessons can be learned form the SHA case:
Lesson 1: A complete plan is not needed to begin.

Lesson 2: Focused efforts are needed.
Lesson 3: Implementation can occur during data
collection and strategy development.
Lesson 4: Consultant resources can help expedite
workforce planning and implementation.
Recommendations
From the lessons learned from the DOT and SHA
case studies and the guidance of the Seven-Step
Workforce Planning Model, the following recom-
mendations are provided for public sector leaders
and human resource managers:
Recommendation 1: If your organization is not

already doing so, now is the time to engage in a
workforce planning effort that is linked to your
organization’s strategic objectives.
Recommendation 2: Conduct internal and external
environmental scans to identify workforce trends in
a proactive manner.
Recommendation 3: Focus workforce planning
efforts in areas where the most benefit will be
achieved.
Recommendation 4: Develop appropriate systems to
collect and report on key workforce indicators.
Recommendation 5: Be creative in developing strat-
egies to address workforce planning issues.
Recommendation 6: Develop a “doable” implemen-
tation plan.

Why Workforce Planning Is Important
The most recent Bureau of Labor Statistics’ Quarterly The Changing Nature of the Public
Census of Employment and Wages indicates that
the public sector accounts for 16.17 percent of the
Sector Workforce
U.S. workforce.1 The majority (13.6 million) of public In 2006, President George W. Bush and former
sector employees work for local governments. The President Bill Clinton led thousands of baby boomers
remainder is divided between federal (2.7 million) in the public sector forward toward another mile-
and state governments (4.5 million).2 With such a stone—turning 60. As with every milestone this
large investment in human capital, arguably one of generation has passed, their presence will continue
the most important determinants of an organization’s to be transformational. It is difficult to predict when
ability to sustain long-term success, it is imperative boomers will retire due to the conflicting forces they
that public managers develop and use this invest- face. More vibrant than their parents, boomers are
ment wisely. not quite ready to trade in their desk chair for an easy
chair. With children in college, aging parents to care
Dramatic changes in the workforce, the workplace, for, and accumulated debt, many will continue to
and the public’s expectations place the value cre- work well past their retirement eligibility date. Still,
ated by public sector employees at risk. Large num- earlier retirement will be a viable option for many.
bers of skilled employees are nearing retirement;
there is insufficient talent in the leadership pipeline The public sector is at greater risk from the pending
as a result of downsizing and hiring restrictions; retirement wave than the private sector for several
competition for skilled employees is growing; reasons. First and foremost are the demographic
diversity in the workforce is increasing both ethni- trends. Employees in the public sector are generally
cally and generationally; and expectations among older than their private sector counterparts, a trend
Generation-X and Generation-Y workers regarding that increased from 1994 to 2001.3 Older workers
early responsibility and work/life balance are dra- represent a much larger proportion of the knowl-
matically different from their predecessors. Rapid edge workers in the public sector (49.3 percent)
advances in technology have enabled the public compared to the private sector (34.8 percent),4
sector to deliver many services quicker and at a making it more difficult to recruit replacements
higher level than ever before. In the broader picture, who can easily take over for the departing employ-
the public increasingly demands that government be ees. The proportion of older workers is somewhat
run “more like a business” while at the same time larger in the federal government than in state and
demands for accountability and transparency are local governments overall.5 Fifty percent of public
growing. These changes have converged to create sector jobs require specialized knowledge compared
a “perfect storm” for public sector human capital to 29 percent in the private sector, making public
management. The old ways of recruiting, retaining, sector workers more difficult to replace.6 Second, is
training, and promoting employees are inadequate the ability of many public sector employees to retire
to meet the challenges of today and the future. The at a relatively young age. With the security provided
remainder of this section will discuss these trends in by their benefit-rich retirement packages, many
more detail. move on to a second career either at other levels of
government or with companies that serve govern- sharing have crumbled. Employees have instant
ment agencies. This is particularly attractive to those access to information; they meet with people from
public sector employees who have developed around the country without leaving their office; and
unique skills or sets of knowledge that make them they have immediate contact with citizens, who can
valuable to the private sector companies that work request assistance with the push of a send button.
for government. Third, are the financial incentives for The trend toward downsizing and outsourcing has
pursuing early retirement, such as early-out packages transformed many skilled public sector employees
and voluntary separation bonuses. When combined from providers of products or services to managers
with retirement benefits, these incentives may of contractors who provide products and services.
encourage early departure of mature employees. This seemingly small change in job duties requires
a dramatically different set of skills. For countless
The potential impact of the retirement bubble is positions, work is not something that must be per-
exacerbated by the lack of attention paid to devel- formed in a prescribed place and in a prescribed
oping leaders in the pipeline. During the 1990s, manner. With cell phones, PDAs, and laptops,
instead of growing a constant stream of leaders, employees can have a virtual office almost any-
the federal government and many state and local where. To be productive, these employees must be
governments decreased their workforces through good at self-management and their managers must
non-strategic layoffs, early-retirement packages, and be skilled at defining expectations. With advances
hiring restrictions. According to the Government in technology occurring at an ever-increasing rate,
Accountability Office (GAO), the impact on the the public sector is likely to continue to experience
federal government was significant, with a 17 per- a mismatch between the skills employees have and
cent contraction in the federal workforce between the skills agencies need.11
1990 and 1999.7 State and local governments exac-
erbated their leadership development problems
Changing Public Expectations
through the imposition of hiring freezes and hiring
Public sector organizations and employees at all
caps. According to a 2002 study by the Council of
levels are facing increased public scrutiny. Strategic
State Governments, 27 states had hiring limitations
management and performance measurement initia-
or hiring freezes in place.8
tives in the federal government such as the Govern-
ment Performance and Results Act (GPRA), Program
Like the United States in general, the workforce is
Assessment Rating Tool (PART), and managing-for-
expected to continue to become more diverse. The
results programs all seek to hold agencies account-
percentage of women in the civilian workforce is
able for the public dollars they spend. At the federal
expected to increase from 42.5 percent in 1980 to
senior-executive level and in some state and local
47.7 percent in 2025.9 The proportion of minorities
governments, pay-for-performance systems are also
in the civilian workforce is expected to grow from
gaining popularity.12
18.1 percent in 1980 to 36.5 percent in 2025. For
the first time ever, there are four generations working
The 24/7 access to goods and services available in
side-by-side: traditionalists—pre-1945 (10 percent of
the private sector has altered the public’s expecta-
the workforce); baby boomers—1945–1964 (45 per-
tions for services from the public sector. Citizens
cent of the workforce); Generation X—1965–1980
want to be able to do business online with the
(30 percent of the workforce); and Generation Y—
government just like they do with private compa-
1980 and beyond (15 percent of the workforce).10
nies. They also expect quick responses to questions
These four generations differ greatly in how they view
and immediate assistance similar to that provided
work and their relationship with their employers.
by the private sector.
Changes in the Workplace

Changing Views of Workforce Management
The worksite of a typical government employee today
To many, the term human capital emphasizes the
bears little resemblance to the worksite of 10 or 15
strategic importance of an organization’s workforce as
years ago. The personal computer and the Internet
the major input to production. In light of the evolu-
have revolutionized the way in which work gets
tion of the U.S. economy, the change of terminology
done. Barriers to communication and information
10 IBM Center for The Business of Government

Acronyms and Abbreviations
AASHTO American Association of State Highway MARAD Maritime Administration

Transportation Officials
MCO mission-critical occupation
ADE Assistant District Engineer
NHTSA National Highway Traffic Safety
ALP Advanced Leadership Program Administration
ARME Assistant Resident Maintenance Engineer NPR National Performance Review
CHCO Chief Human Capital Officer OIG Office of the Inspector General
CIVFORS Civilian Forecasting System OLA Maryland Office of Legislative Audit
CPAT Capability Planning and Analysis Tool OMB Office of Management and Budget
CPDF Civilian Personnel Data File OMT SHA’s Office of Materials and Technology
DBM Maryland’s Department of Budget and OPM Office of Personnel Management

Management
OST Office of the Secretary of Transportation
DOT U.S. Department of Transportation
PART Program Assessment Rating Tool
eHR Enterprise Human Resources
PDP Professional Development Plan
eLMS Electronic Learning Management System
PHMSA P
ipeline and Hazardous Materials Safety
FAA Federal Aviation Administration Administration
FHWA Federal Highway Administration PMA President’s Management Agenda
FMCSA Federal Motor Carrier Safety Administration RITA Research and Innovation Technology
Administration
FRA Federal Railroad Administration
RME Resident Maintenance Engineer
FTA Federal Transit Administration
SHA Maryland State Highway Administration
GAO Government Accountability Office
SLSDC Saint Lawrence Seaway Development
GPRA Government Performance and Results Act Corporation
HCAAF uman Capital Assessment and

H SMQC S tatewide Maintenance Quality Council
Accountability Framework (Maryland)
IPMA-HR International Public Management SMT Senior Management Team

Association for Human Resources
STB Surface Transportation Board
LEAD Leadership Education and Development
Program WASS Workforce Analysis Support System
www.businessofgovernment.org 11
aptly reflects the change that must occur in our view retained; performance incentives are clear and care-
of the public sector workforce. During much of the fully aligned to achieve the agency’s mission; agen-
20th century, improvements in productivity and the cies meet and exceed performance standards; and,
ability to maintain a competitive edge were driven finally, accountability is clear with quick rewards for
by improvements in the elements of production— good performance and real consequences for perfor-
raw materials and capital investments. Emphasis was mance failure.19
placed on getting raw materials to manufacturing
facilities as inexpensively as possible. Improvements Eight states have embraced strategic workforce plan-
in factory layout and the efficiency of equipment led ning as an integral component of their government
to increases in productivity. Workforce planning was management model. Three states, Georgia, Virginia,
not an issue because workers were interchangeable and South Carolina, earned an “A” on the Govern-
and easily replaceable. Companies invested little in ment Performance Project’s 2005 Grading the States
training and workforce development. Report for their efforts to effectively manage their
human capital.20 Each of these states has centralized
In the knowledge economy, the collective set of workforce planning and an integrated human
knowledge, skills, abilities, and competencies resources information technology (IT) system that
developed by an organization’s workforce are argu- provides accessible, real-time workforce data.
ably the most important determinants of an organi-
zation’s ability to sustain long-term success. In A strategic human capital focus calls for the public
federal and state government agencies, the work- sector to shift from its traditional paradigm that val-
force investment is tremendous—the federal gov- ued backfilling vacancies as quickly as possible to a
ernment employs 2.7 million people and state new paradigm that views employees, as well as con-
governments employ another 4.6 million people.13 sultants, temporary staff, and third-party partners, as
a pool of talent to be configured and developed
While some say the sky is falling and the United strategically to create the most public benefit in the
States will experience a severe shortage of workers, most efficient manner. By taking a more strategic
others liken the “crisis” to Y2K—full of hype, but, in and longer view of the organization’s needs, the
the end, the crisis fails to materialize.14 Regardless organization can put into place a plan for it to
of whether the boomer exodus is massive and sud- evolve one position at a time.
den or slowly increases over the next five to 10
years, one thing remains clear: The public sector
must be strategic in how it recruits, retains, trains,
and manages its workforce.
GAO designated strategic human capital manage-

ment as a government-wide, high-risk area in
2001.15 In his testimony, U.S. Comptroller General
David M. Walker stated that “effective human capi-
tal management is the missing link in the federal
management framework.”16 He also said that
“human capital shortfalls are eroding the ability of
many agencies—and threaten the ability of others—
to economically, efficiently, and effectively perform
their missions.”17
President George W. Bush identified strategic human

capital management as his first priority in his
President’s Management Agenda.18 The expectation
was for the culture of federal government agencies
to shift to a higher level of performance where
skilled, high-quality employees are attracted and

The Seven-Step Workforce

Planning Model
Workforce planning is more than the 3R’s of recruit-

ment, retention, and retirement. It begins with a Seven-Step Workforce Planning Model
sound strategic business plan, reliable and available
workforce data, a strong internal and external anal- Step 1: Define the Organization’s Strategic Direction
ysis, and a keen awareness of trends at the local
and national level that impact how an organization Step 2: Scan the Internal and External Environments
does business and the types of skills an organiza-
Step 3: Model the Current Workforce
tion will be able to attract. It is about aligning an
organization’s human capital—its people—with its
Step 4: Assess Future Workforce Needs and Project
business plan to achieve its mission, or, in other Future Workforce Supply
words, ensuring that an organization currently has
and will continue to have the right people with the Step 5:Identify Gaps and Develop Gap-Closing
right skills in the right job at the right time perform- Strategies
ing at their assignments efficiently and effectively.
Step 6: Implement Gap-Closing Strategies
More formal definitions include that of the National
Academy of Public Administration: Step 7: Evaluate theEffectiveness of Gap-Closing
Strategies and Revise Strategies as Needed
Strategic workforce planning is a system-

atic process for identifying the human
capital required to meet organizational From these definitions one might get the impression
goals and developing strategies to meet that workforce planning is a rigid “system” that must
these requirements.21 be implemented agency-wide in order to do it
“right” and reap the benefits. While many organiza-
The International Public Management Association tions follow a systematic approach, there is no one-
for Human Resources’ (IPMA-HR) definition is size-fits-all workforce planning program. However,
similar, but more comprehensive: workforce planning programs do share some com-
mon elements including:
Workforce planning is the strategic align-
ment of an organization’s human capital 1. Alignment with the strategic goals of the
with its business direction. It is a method- organization
ological process of analyzing the current
2. Identification of the human capital needed to
workforce, identifying future workforce
achieve the goals
needs, establishing the gap between the
present and the future, and implementing 3. Alignment of human capital as needed to
solutions so the organization can accom- ensure success
plish its mission, goals, and objectives.22
4. The creation, implementation, and evaluation
of strategies to ensure the right mix of human
capital is currently and will continue to be The external analysis should have both a macro and
available when and where needed a micro focus. At the macro level, there are many
publications about industry trends, trends in public
The Seven-Step Workforce Planning Model pre- sector employment, labor market forecasts, and
sented in the box on page 13 provides a sound technology trends that can inform the planning
framework for understanding the basic elements group. These publications are available from organi-
of workforce planning. The model incorporates zations like the Bureau of Labor Statistics, industry
concepts from the IPMA-HR generic workforce trade groups, and professional associations. Examples
planning model and the Office of Personnel of macro trends include the aging workforce, changing
Management (OPM) workforce planning model. expectations of workers, the increased appeal of
The details of each of these steps are discussed in public service post-9/11, changes in how people
the paragraphs that follow. access and use information, and the proliferation
of the Internet.
Step 1: Define the Organization’s
At the micro level, the planning group should be
Strategic Direction looking at what is going on in the spheres in which
Strategic planning and strategic management prac- the organization operates, such as the characteristics
tices have become the norm in many public sector of the local labor supply, the strength of the economy,
organizations. A well-crafted strategic plan clearly the appeal of the area to prospective employees, the
states the organization’s mission and identifies the political environment, and the demographic makeup
primary strategies the organization will follow to of both the customer population and the population
achieve meaningful results. Defining mission, vision, of potential employees. Examples of micro-level
goals, and objectives has become fairly widespread, trends include a change in political leadership,
and agencies have begun to address issues of perfor- changes in the capacity or availability of vendors
mance data reliability. However, two other strategic to provide needed services, the availability of degrees
planning challenges remain. First is linking financial from local universities in critical disciplines, projected
resources (budget) to the strategic plan. Second, and shortages or surpluses in key occupations, and the
most important for this discussion, is aligning strength of competition for employees with critical
human resources to the strategic plan. skill sets.
The workforce planning cycle starts by reviewing The external analysis need not be exhaustive or
the performance requirements of an organization’s incredibly time-consuming. Rather, it is meant to
strategic plan and identifying the core or strategic highlight for the planning team how potential
skills and competencies needed for success. The changes in the external environment will impact
strategic plan may also provide insights into expected what they do; for whom they do it; and how they
changes in the volume of work, geographic distribu- will recruit, retain, and develop the workforce they
tion of work, modes of service delivery, hours of need. Once a sound external analysis is conducted,
access, or types of clients served. Changes in any it can be reviewed and updated as part of the plan-
of these elements of the plan can have significant ning cycle to identify any significant changes in
implications for the agency’s demand for particular the environment.
skills or competencies.
The internal analysis should focus on factors such
as workforce trends, efficiency of HR transactions,
Step 2: Scan the Internal and organizational structure, organizational culture,
External Environments employee morale, and current levels of performance.
Organizations do not operate in a vacuum. Therefore, Workforce trends include items such as retirement
a review of demographic, social, political, economic, risk in key leadership or technical positions, the
and technological issues and trends that may impact level of succession planning, the age distribution of
how an organization provides services, who it serves, the workforce, recruitment and retention statistics,
or who it employs is an important step in workforce and the proportion of positions filled by internal
planning.23 candidates. Another important trend to monitor is

the amount of compensated and uncompensated during the planning horizon and provides the funda-
overtime. Doing more with less often means that mental understanding of the workforce needed to
those who are left work more and not smarter. develop effective gap-closing strategies. When
Increases in overtime that are not planned as part modeling the current workforce, organizations must
of an emergency response system or that cannot be include permanent employees, supplemental direct-
directly related to a specific unexpected crisis may hire employees, and contract workers:
signal the need for more staff, IT improvements, or
business process redesign. • Permanent employees are on the organization’s
payroll, have regular work hours, and are enti-
For many agencies, internal workforce analysis is tled to receive the benefits of regular employ-
difficult at best due to a lack of robust HR informa- ment offered by the organization.
tion systems. Many public agencies are using old,
• Supplemental direct-hire employees are on the
outdated mainframe information systems with limited
payroll of the organization, but do not have regu-
capacity and flexibility to manage and report HR
lar work hours and are not entitled to full benefits
data. In a report on a survey of 200 public sector HR
of employment. Supplemental employees work
professionals, 32 percent identified poor IT systems
on a temporary, seasonal, or on-call basis.25
as a barrier to improving HR functions and only 31
percent described their organization’s use of IT as • Contract workers are employees whose “labor
comprehensive.24 Thus, an assessment of HR transac- is procured through a contractual mechanism
tion efficiency and effectiveness is also appropriate with a third party, such as a staffing agency.”26
as part of the internal analysis. They are employees who “work exclusively at
the customer’s site, and whose work activities
Knowledge of the organizational culture and level are integrated with those of the customer’s
of employee morale is helpful in the strategy devel- employees.”27
opment and implementation phases of workforce
planning because it provides insight into which In some organizations, data on the current perma-
workforce strategies are most likely to be successful. nent and supplemental workforce comes from the
HR department and contains basic information such
An analysis of the strengths and weaknesses of the as name, education level, position title, salary, years
organization can identify human capital challenges in current position, and retirement eligibility date.
and opportunities. For example, in many public These databases offer a good staring point, but they
organizations, there are employees nearing retire- are insufficient to meet the needs of workforce plan-
ment who have dedicated their careers to the orga- ning. Because employees are the assets of produc-
nization and its mission. These employees possess tion, leaders developing workforce plans need to
a wealth of knowledge about their job, their organi- know what skills the employees possess, what skills
zation, and the networks in which they operate. they are capable of learning, where they aspire to
While such employees are assets, they also pose move in the organization, and how long they plan
a significant risk to the long-term success of the to stay with the organization.
organization. If these employees do not transfer
their knowledge to the next generation of leaders An employee skills inventory can be a useful
or institutionalize their knowledge, the information component of the workforce inventory.28 Not only
will be lost. Another example is the pending hiring can the inventory assist in projecting the availabil-
boom. Agencies that can think strategically with a ity of needed skills in the future or in identifying
long-term view of their workforce needs can start potential internal applicants for vacancies, it can
today to create the type of workforce that will be also be a tremendous asset to identify employees
needed in the next five to 10 years. with specific skills that may be needed for short-
term projects.
Step 3: Model the Current Workforce
It is not uncommon for public organizations that
A strong understanding of the characteristics, capa- have experienced downsizing, workload increases,
bilities, and distribution of the current workforce is or mission creep to employ a significant number of
necessary to project how the workforce will change
contract workers as a complement to their regular is available and develop a long-term plan to collect
workforce. In most ways, these employees appear and analyze workforce data on a regular basis.
and function like regular employees—they use the
organization’s workspace and equipment; they per-
Assessment of Future Workforce Needs
form almost all of the same functions as regular
In the public sector, projecting future workforce
employees; and, most importantly, the organization
needs is a relatively new phenomenon. The assess-
depends upon them to achieve its mission. These
ment requires leaders to think critically about how
employees are often referred to as “contractors.”
the organization will do business in the future.
Excluding these employees from the current inven-
Assessments can be complex, data-driven models
tory would under-represent the level of effort
for organizations with sound workforce data or
required to achieve the current results. Therefore,
more qualitative estimates developed by the organi-
contract workers should also be considered in the
zation’s leadership team for organizations that lack
current workforce inventory. Data on contract
strong workforce data. Regardless of the technique
workers can sometimes be obtained from the HR
used, one maxim applies: Bad assumptions create
department and/or the procurement department or
bad models. Therefore, it is important to vet the
other similar office in charge of managing contracts
model’s assumptions thoroughly.
for contract workers.
The workforce demand forecast is an estimate of the
Often, the value of a workforce inventory is at the
number and mix of employees that an organization
micro level. For example, a relatively new organi-
will need in the future. Particular attention should
zation may have an above-average distribution of
be paid to identifying and projecting mission-critical
young managers, with one or two departments such
occupations. The forecast has two components: first,
as finance or procurement having a significant pro-
the estimated workload and related staffing require-
portion of employees that are nearing retirement. In
ments; and, second, the likely competencies and
this situation, an overall workforce planning strategy
skill sets needed. Guidance for both is provided by
may focus on retention, leadership development,
the strategic plan.
and cross training. While this strategy is appropriate
for the overall organization, in the departments
Estimating workload is the heart of demand fore-
where retirements are imminent, strategies such as
casts. Like the workforce supply projections,
knowledge management, mentoring, and job shad-
workload projections can be based on qualitative
owing is a more appropriate course of action.
models, quantitative models, or a mix of the two.
The key outputs of workload projection are the
Step 4: Assess Future Workforce estimate of the type and volume of tasks to be per-
Needs and Project Future Workforce formed and how many people will be needed to
perform the tasks. The projection of the type of
Supply work and, to some extent, the volume of work is
From the environmental scan, the workforce plan- grounded in the direction provided by the strategic
ning team will have a good idea of the core functions plan. The environmental scan provides input into
in which the organization must excel to achieve its the workload analysis as well. For example, pro-
mission. The next step in the process is to project jected increases or decreases in the population
the future workforce needs. Workforce need is often served will have a corresponding impact on the
referred to as workforce demand. A parallel step is volume of work. Advances in technology may alter
to project the composition and characteristics of the how tasks will be performed, with a corresponding
workforce the organization will have in the future if impact on the number of employees needed and the
trends remain unchanged. This projection is often skills needed.
referred to as workforce supply. Workforce supply
and demand models can be computed with a gen- Staffing requirements can be estimated through
eral assessment of trends or with more sophisticated quantitative and qualitative techniques as well.
mathematical models. Organizations without access High-volume tasks that are mostly standardized
to workforce databases should not skip this step. are well suited to more quantitative analysis.
Instead, they should work with the information that Specialized, unique, or low-frequency tasks are

more suited to qualitative techniques such as expert the future and not just the skills and competencies
panel reviews or Delphi analyses. of the incumbent in a given position. By thinking
strategically about the skills that will be needed in
The Delphi technique is a tool originally developed the future, organizations can make the most of each
by the Rand Corporation to gather the collective position instead of designing positions and workflow
wisdom of a group of experts in situations where to suit the skills and background of the incumbent.
conventional data analysis techniques were too Industry trends identified in the environmental scan
costly or where analysts needed to employ so many can provide useful insight when developing the
assumptions to make the techniques work that the competency requirements.
validity of the final model is suspect. Under the
Delphi technique, a panel of experts is convened In summary, workload analyses tell managers how
and sent a survey to complete on the topic at hand. much work will need to be done, staffing analyses
The results are tabulated and shared with the individ- project how many people will be needed, and com-
uals. The experts are then asked to complete a new petency assessments tell managers what types of skills
survey on the same topic that has been modified to the workforce will need to develop to be successful.
include the results of the first survey. There are usu-
ally several rounds of surveys. While participants get Projection of Workforce Supply (Number of
to respond to the collective findings in the follow-up Employees by Skill Group)
surveys, they do not engage in direct discussion and Workforce supply is, at its most basic level, the cur-
they are often not known to one another (Linstone, rent workforce plus new hires less projected separa-
et al., chapter 1). tions at some specific date in the future (see Figure 1).
For some organizations, projected workforce supply
Estimating the skills and competencies that will be will be the result of a sophisticated mathematical
needed in the future is somewhat more challenging model. For others, it will be an educated guess
than estimating the future volume of work. How key based upon data collected in the environmental
competencies required to complete core functions scan. For most, it will be somewhere in between.
are defined impacts the number of employees and
has a significant impact on staffing projections. No matter the level of sophistication, all models
Employees with higher-level skills are able to work need to consider the same elements when project-
more efficiently than those with lesser skills. Workforce ing the future workforce composition: the inventory
planning provides the opportunity for the organiza- of the current workforce; the rate at which employ-
tion to assess the competencies required to make ees in specific occupations and at various leadership
each position function optimally. The focus should levels will leave the organization; what types of
be on the ideal competencies that will be needed in skills and abilities the organization will be able to
Figure 1: Projecting Workforce Supply
Start with Compute

Add Subtract
Current Workforce Workforce Supply
New hires
Permanent Retirees Permanent
employees Transfers workforce
Voluntary
Supplemental Supplemental Supplemental
separations
direct-hire employees direct-hire employees direct-hire employees
Contract Contract Involuntary Contract

employees employees separations employees
attract; how the permanent workforce can be sup- and why. Attrition stems from both voluntary sepa-
plemented; and how the skill set of those who ration (retirement, transfer, or resignation) and invol-
remain will or can change. untary separation (termination for cause, layoff,
long-term medical leave, death, or medical retire-
When computing how many people to add to the ment). Once again, for strategy development pur-
current workforce inventory, workforce planners poses, it is important to assess attrition at the micro
must forecast who they will be able to recruit and and macro levels. In the case of voluntary separa-
what skills they will bring, how many supplemental tion, it is essential to collect information on why
direct-hire employees will be available to the orga- employees are leaving, where they are going, and
nization and what skills they bring, and what skills what types of jobs they are taking. High turnover
they will be able to acquire though the use of con- in a specific department or job classification may
tract employees. be a signal that salaries in the classification are too
low, workload is too high relative to the salary, or
The forecast of new hires (the recruitment forecast) working conditions are sub par. Micro-level knowl-
is arguably the most difficult component of the edge is useful for developing targeted workforce
supply forecast. Whereas current and historical planning strategies.
data provide a foundation for the current workforce
inventory and the separation forecast, the recruit- The current workforce inventory must be compared
ment forecast is influenced by many variables out- to the assessment of the future workforce needs to
side the control of the organization. From the identify the human capital gaps that must be filled
environmental scan, the workforce planning team to achieve organizational success.
should be able get a good idea of the general avail-
ability of the skill sets that will be needed. The most Step 5: Identify Gaps and Develop
challenging part of the forecast is projecting the
organization’s ability to be a successful recruiter of Gap-Closing Strategies
the talent it needs. Recruitment success depends At its most fundamental level, gap analysis identifies
upon economic conditions, the local market for the deficit or surplus between the projected work-
specific skills, and the competition for labor. While force supply and the projected workforce demand.
it may be hard to forecast precisely whom the orga- How an organization will reduce the surplus and
nization will be able to hire, it should be relatively overcome deficiencies provides the substance of the
easy to identify positions that will be harder-than- strategic workforce plan.
average to fill. Another difficult component of the
recruitment forecast is the unknown needed skill
Gap Identification
sets. No matter how well the organization plans,
From the comparison of workforce supply and
there is always a possibility that people will be
demand, organizations will be able to identify
needed to fill jobs that currently do not exist. The
gaps—those particular areas where they will need
key in recruitment forecasting is to remember that
more employees, need different skill sets, or need
it is a forecast—an imperfect projection of the
to redesign positions and work processes.
future supply.
Gap analysis can be as simple as assessing the num-

Projecting the availability of contract employees is
ber of key leadership and technical positions that
another important component of the supply forecast.
will need to be filled in the next five years. More
Because the companies for whom these employees
commonly, gap analysis focuses on identifying criti-
work usually compete in the same labor market as
cal professions where the organization expects to
the public sector organization, they can be subject
have a shortfall and new skills that will be needed
to the same labor shortages and skill deficits as the
that are not easily available in the organization or in
public organization.
the local labor market.
Once the current workforce inventory and recruit-
Most of the emphasis in gap analysis is on identify-
ment forecast are complete, the next step is to fore-
ing and correcting expected deficits. Much less
cast how many people will stay with the organization
attention is paid to identifying employee surpluses.

As organizations take advantage of improvements in do not consider it a viable employment option

technology, outsource support functions, and change and sometimes the rules that determine employees’
the way they do business, there will be people whose retirement benefits penalize employees for working
skills are no longer needed. on a part-time basis. Allowing valuable employees a
more gradual entry into retirement has the potential
to be a win-win strategy.
Development of Gap-Closing Strategies
How the gap between supply and demand will be
Retaining quality non-retirement-age employees is
closed is at the heart of workforce planning strategy
frequently a particular challenge for government
development. State, federal, and local government
agencies, which often pay less than their private
agencies employ a variety of techniques to close
sector counterparts and in some instances pay less
the gap. Gap-closing strategies fall into five groups:
than other government entities in the same region.
Addressing the work/life balance seems to be a key
1. Retaining good employees with needed skills
factor in employee retention. Some of the more
2. Recruiting good employees with needed skills successful strategies employed by federal agencies
include alternate work schedules, employee assis-
3. Developing employees
tance programs, child care centers and assistance,
4. Retaining organizational knowledge and build- subsidized transportation, telecommuting, and
ing employee skills retention bonuses.29 Other strategies include job
enrichment, job sharing, tuition remission, differen-
5. Reducing overstaffing
tial pay for advanced education or certification, and
regular competitive salary reviews.
Some of the more common gap-closing strategies used
by federal and local agencies are summarized below.
Strategies for Recruiting Employees with Needed Skills
Recruitment poses particular challenges for govern-
Strategies for Retaining Good Employees with
ment, especially when the agency needs to attract
Needed Skills
specialized or technical skills, or when the supply of
Public sector agencies are often challenged to keep
needed skills is limited in the hiring area. Some of the
highly skilled and productive employees. The two pri-
more effective recruitment strategies include special
mary avenues by which organizations lose employees
hiring bonuses, accelerated or special hiring author-
are retirement and voluntary separation, which usu-
ity, relocation bonuses, and outstanding scholar pro-
ally means the employee found a better job.
grams allowing high-quality students to be hired
quickly.30 Employee referral bonuses and differential
Public sector organizations may be unwittingly has-
pay scales have also been used effectively.
tening the retirement of their employees by offering
them benefit-rich retirement packages at relatively
For some agencies, the recruitment problem begins
young ages that enable them to collect their pensions
with the pipeline of employees. In some cases, there
and receive healthcare benefits while they are
are not enough qualified applicants in their hiring
simultaneously working for another employer. It is
market. In these instances, government agencies have
not unheard of for employees in the federal sector to
been known to team up with local high schools or
retire on Friday and return as a contract employee to
colleges to develop training or degree-granting pro-
a similar job in the same organization the following
grams. Some agencies recruit students while they
Monday. Some government organizations limit this
are still in school and pay for them to attend college
practice by having policies that prevent employees
based on their promise to stay with the agency for a
from returning as contract workers.
fixed period of time after graduation.
Another tool for blunting the potential impact of mass
Another issue with worker availability occurs when
retirements is phased retirement. Some employees
agencies have the talent they need, but that talent
would prefer to work part-time and/or cut back their
is assigned elsewhere in the organization. Relocation
level of responsibility instead of retiring completely.
authority is important, especially for assignments
This option is often precluded because agencies
that are less than desirable. Management needs
the authority to shift managers and employees and knowledge transfer. This is especially true for
around as needed to best assist the organization in highly complex or specialized jobs.
the achievement of its mission. However, reassign-
ment authority should be used judiciously since its Succession planning programs are useful for building
abuse may increase the voluntary turnover rate in organizational knowledge while ensuring that a strong
the organization. pool of potential successors will be available to replace
retirees. Common activities included in succession
With lean staffing patterns in many agencies, signifi- planning programs are job shadowing, job rotations,
cant spikes in workload can be a major drain on the mentoring, and formal professional development.
workforce. Some of the strategies for dealing with
workload peaks include hiring supplemental staff While it may seem obvious, documenting pro-
via private companies or hiring retirees as temporary cesses, procedures, and best practices is a good
staff. Chronic staffing shortages need to be addressed basic knowledge management strategy. The use of
in a more permanent manner. When hiring addi- communities of practice is a less well-known strat-
tional agency staff is not viable, agencies can look egy. In communities of practice, people meet regu-
at outsourcing their non-mission-critical functions larly with members of their professional peer group
and positions to free up positions to hire people in to discuss best practices, share information, and
mission-critical areas. Another common solution is serve as resource people for other members of the
to hire supplemental staff through a third party. This community. Communities of practice can be helpful
is often a good solution for functions like IT, where in building and maintaining a base of topic- or
the skill sets are constantly changing and the agency function-specific knowledge within an organization.
has difficulty retaining employees with the right skills.
Skill development is an important component of
workforce planning. Since the skills needed in the
Strategies for Developing Employees
workforce are always changing, employee develop-
Employee development is a continuous process, and
ment will always be an important component of
strategies relating to employee development should
strategic human capital management. Employee
be in sync with the organization’s strategic priorities.
development strategies can include training programs,
A basic employee development strategy is the contin-
tuition reimbursement, job rotation, and mentorships.
ual reassessment of the training curriculum to ensure
These activities serve to professionalize the organiza-
it supports the organization’s needs. Cross training
tion, improve work quality and consistency, and pre-
has been a popular strategy as a tool for ensuring
pare people to advance in the organization.
adequate coverage of a particular function. However,
strategies such as job rotation, temporary assign-
ments, and shadowing have the added potential to Strategies to Reduce Overstaffing
increase the employees’ skills and understanding of In every workforce planning effort, there will come
the organization while facilitating improved commu- a time when it is clear that some employees have
nication across the organization and boosting the skills that do not match the agency’s needs. In the pri-
organization’s creativity in problem solving. vate sector, these employees would typically be laid
off or fired. In the public sector, this strategy is often
not viable. Fortunately, there are a number of viable
Strategies for Retaining Organizational Knowledge
strategies for dealing with skill mismatches including
and Building Employee Skills
retraining or reassignment. In situations where a func-
Transferring accumulated knowledge and wisdom
tion is outsourced, the outsourcing contract can
from senior employees to their replacements is a
require the vendor to interview those agency person-
significant challenge. Phased retirement is one strat-
nel who perform the function in-house. Other options
egy for knowledge transfer. Another option is the use
include offering voluntary separation incentives, also
of personal services contracts or temporary employ-
known as buyouts and voluntary early retirements.31
ment contracts to hire retirees back on a limited basis
Finally, when layoffs are unavoidable, offering retrain-
to work on special projects or participate in knowl-
ing and/or outplacement services may be a viable
edge documentation projects. Parallel appointments
option to help the employees while maintaining
are another good tool for knowledge management
morale in the organization.

Step 6: Implement Gap-Closing implementing, and supporting workforce planning

across all agencies.
Strategies
With critical thought and reasonable data, workforce A lack of sufficient resources—both human and
planning teams are able to develop sound strategies financial—has been a barrier to successful and
to address the most significant workforce challenges. timely implementation of gap-closing strategies.
However, implementing gap-closing strategies This barrier seems most significant in agencies
requires much more time, attention, and resources. where workforce planning is not mandated or
Assuming an agency has developed sound strategies, centrally supported. However, it has also been a
leadership, communication, and supporting resources problem in federal agencies where staff, funding,
are critical to successful implementation. and IT resources have been appropriated. The
implication for HR managers is that they will
As with any change initiative, agency leadership need to be judicious when selecting which strate-
support is critical to implement the more novel gies to implement and then provide resources to
initiatives to address workforce supply gaps. Leaders support implementation.
are in a unique position to challenge their employ-
ees to test the bounds of the flexibilities allowed
under the current personnel system, identify creative
Step 7: Evaluate the Effectiveness of
solutions to workforce challenges, and provide Gap-Closing Strategies and Revise
resources necessary to support implementation. Strategies as Needed
The final step in the Seven-Step Workforce Planning
Communication is another critical component of
Model involves evaluation and revision. Monitoring
change initiatives. Leaders and workforce planning
implementation and evaluating results provide the
team members must communicate with managers
early warning system that organizations need to
and employees about the goals, scope, and time-
ensure that their workforce planning assumptions
frame of the workforce planning effort. Once
are valid, their strategies are being implemented as
strategies are ready for implementation, they must
planned, and, most importantly, the strategies are
be communicated broadly as well. Managers and
having the desired impact. Monitoring occurs at
supervisors need to understand their roles and respon-
two levels. First, agencies must monitor plan imple-
sibilities in workforce planning, and employees need
mentation. In other words, “Are the strategies being
to understand their rights.
implemented as intended?” Second, agencies must
monitor impact by asking, “What results, intended
Key stakeholders should be consulted during the
or unintended, have been achieved as a result of
design and implementation of workforce planning
the strategies?”
strategies. For example, union and employee
representatives can provide insight into the views
Assessing the degree of strategy implementation
of employees or potential employees that can be
often requires the use of performance data. For
invaluable during the strategy development and
example, if an agency is in a tight labor market for
implementation steps.
scientists and has identified delayed approval to
hire as a recruitment barrier, it may implement
Strong IT systems and appropriate levels of staff and
strategies to reduce the approval time or to provi-
financial resources facilitate successful implementa-
sionally hire people who are likely to pass the
tion of gap-closing strategies. States that are the
screening. Tracking the use of provisional hiring is
most successful at workforce planning have sound,
one way to assess the degree to which the strategy
integrated IT systems for human resources with
is being implemented.
workforce data readily available for managers and
supervisors who are involved in day-to-day work-
If strategy implementation is on track, the agency
force planning.32 Centralized support and guidance
can move to evaluate the impact that the strategies
were also provided in these states.33 This is also true
are having on reducing workforce gaps. If strategy
in the federal government, which through OPM
implementation is off track, agency leaders need to
has invested significant resources in developing,
assess the reasons why. Some of the possible reasons
why strategies are not being implemented include process of assessing the environment, reviewing the
employee resistance, lack of awareness of the strat- workforce implications of changes in strategic direc-
egy, lack of knowledge about how to implement the tion, identifying future workforce needs, identifying
strategy, insufficient resources, or intervening exter- gaps, and re-evaluating the utility of workforce strat-
nal events. Once the reasons are identified, top egies. A recent example that underscores the impor-
leadership support and attention may be needed tance of regular re-evaluation of the environment and
to remove the barriers to implementation. the utility of current strategies was the dot-com
stock-market downturn in 2000. At the height of the
Assessing impact requires performance data that bull market, many people were eagerly anticipating
many public organizations lack. While the federal early retirement as the value of their retirement
government, through OPM, has an excellent system portfolios skyrocketed. However, the dramatic stock-
for collecting and reporting workforce data, the market downturn quickly put a halt to the early
same cannot be said for most state and local gov- retirement plans of many who were relying on their
ernments. Research conducted by the Government 401ks to fund their retirements. Agencies that did
Performance Project identifies the lack of timely not react to this trend may have continued a trend
and accurate workforce data as a barrier to work- of aggressive recruitment to replace those workers
force planning efforts in states across the country. when they really needed to switch to strategies
States such as Georgia and Michigan that have for managing a multi-generational workforce.
excelled in workforce planning owe their success From the evaluation of the implementation and
in part to excellent integrated HR IT systems. effectiveness of workforce planning strategies and
from an updated environmental scan, the work-
Evaluation of workforce planning looks to assess force planning team will be able to cancel or
whether or not the strategies implemented have revise existing strategies as needed and develop
made a difference in closing the gap or addressing new strategies as warranted.
the workforce problem identified in the environmen-
tal scan, to consider whether there have been unin- Summary
tended consequences of the strategies, and to identify
changes in the internal and external environment Workforce planning is the critical missing compo-
that mitigate the need to implement specific nent of performance improvement and strategic
strategies. Common evaluation indicators include management initiatives that are now commonplace
workforce demographics, demographics in mission- in many state and local governments. Even though
critical occupations or positions, measures of workforce planning is important, the vast majority
workforce gaps, retention rates, and employee of states (72 percent) do not engage in systematic
climate assessments. A list of commonly used work- workforce planning. As shown in Figure 2, only
force measures is included in Appendix IV. 16 percent of states engage in regular workforce
planning and only 22 percent have their agencies
Good workforce planning is about process as well engage in the practice.
as outcome. From the process perspective, the
agency must evaluate if it has good systems in place Just as important as understanding what workforce
to identify emerging trends in workforce supply or planning is, is understanding what it is not. Workforce
demand. Does the agency have a process in place planning is not predicting the future, inventorying
for scanning the internal and external environments all of an organization’s positions, creating a static
to identify technology shifts or best practices that plan, documenting what it is, or just building the
can help the agency staff most effectively? Are pro- human resources function.34
cedures in place to regularly review work processes
to identify methods for reducing costs and/or The next two sections will discuss two contrasting
improving efficiency? examples of how workforce planning has been
implemented in the public sector. The first, the U.S.
Because the external and internal environments are Department of Transportation (DOT), represents an
constantly changing, workforce plans must remain example of a highly structured, formalized workforce
dynamic as well. It is important to engage in a regular planning process that is well funded and staffed, with
systems in place to support the initiative. The second

Figure 2: Workforce Planning in State Governments
100%
90%
80%
72%
70%
58%
60%
Statewide planning
50% Agency-level planning
40%
30%
16% 22% 20%
20%
12%
10%
0%
Yes No Informal
Source: Data collected from the Government Performance Project, 2005, state summaries of the Managing People category.35
example, the Maryland State Highway Administration

(SHA), is an example of a workforce planning system
that developed as a natural outgrowth of an initiative
to improve the management of the organization. SHA
is not mandated to perform workforce planning, it
does not have an integrated HR database system, and
it has limited staff resources to devote to the process.
Furthermore, Maryland state government is in the
early stages of developing a workforce planning pro-
cess. From these two examples will come recommen-
dations for implementing workforce planning in
public organizations of all sizes.
Workforce Planning at the

U.S. Department of Transportation 36
The U.S. Department of Transportation’s experience The more routine HR activities such as recruitment,
implementing the federal human capital and work- hiring, and retention efforts were delegated to line
force planning requirements is illustrative of the suc- managers, thus freeing HR to spend more time on
cesses and challenges that occur when workforce strategic agency-wide issues. Under GPRA, perfor-
planning is mandated and centrally supported. Under mance management was expanded to employ stra-
the President’s Management Agenda (PMA), DOT is tegic planning and performance measurement to
required to conduct workforce planning following improve the effectiveness and accountability of
guidelines developed by OPM (see the box “Goals government. All programs were expected to demon-
for the President’s Management Agenda—Human strate their measurable value, and administrative
Capital Initiatives”). Even though DOT is following functions were expected to demonstrate how they
a mandate, using a framework provided by OPM, supported the achievement of the agency mission.40
and receiving data support from OPM, the depart-
ment has been able to customize its efforts to best These initiatives were partially successful in making
address its strategic human capital challenges. DOT’s HR personnel strategic partners in agency manage-
success with workforce planning is evidenced by ment. This was demonstrated in a 1999 OPM study
the fact that it was one of only five agencies to earn that found HR representatives increasingly included
“green” status in the Human Capital Area of the PMA in the strategic planning processes of their agencies.
report card in June of 2004.37 As of March 31, 2007, Unfortunately, the study also found that much of
10 of 26 departments had yet to achieve green sta- their efforts were still focused on improving internal
tus38 (see the sidebar “Getting to Green” on page HR office functions.41
26 for a discussion of the criteria for green status).
This section presents the DOT workforce planning In 2001, Comptroller General David Walker desig-
process using the Seven-Step Workforce Planning nated human capital management as a high-risk
framework and discusses specific areas of success area for the federal government and included it on
and implementation challenges. GAO’s high-risk list.42 President Bush included
human capital as the first of five government-wide
management priorities in his PMA.
Human Capital Management
Mandated at the Federal Level Through his management agenda, President Bush
Under the Clinton administration (1993–2001), the mandated strategic human capital management.
National Performance Review (NPR) and GPRA ini- Congress reinforced the importance of human
tiatives represented the federal government’s initial capital in the federal government when it passed
steps toward aligning human capital with mission. the Chief Human Capital Officers Act of 2002. The
NPR focused on making government more efficient act established the position of the Chief Human
and results oriented. While primarily focused on Capital Officer (CHCO) for each executive branch
programmatic performance, NPR also addressed agency; created the Chief Human Capital Officers
administrative programs. The focus of HR was Council, which includes the director of OPM, the
expected to shift from HR compliance to results.39 deputy director of OMB, and all CHCOs; required

Goals for the President’s Management Agenda—Human Capital Initiatives

Near-Term Results
• “Human capital strategies will be linked to organizational mission, vision, core values, goals, and objectives.
• Agencies will use strategic workforce planning 43 and flexible tools to recruit, train, reward, and retain a high
quality workforce.
• Agencies will determine their ‘core competencies’ and decide whether to build these competencies internally,
or contract for services from the private sector.
• A statutory framework will be in place to attract and retain the right people, with the right skills, in the right job.”44
Expected Long-Term Results

• “Citizens will recognize improved service and performance, and customer satisfaction will increase.
• Agencies will develop, sustain, and effectively deploy a skilled, knowledgeable diverse, high quality workforce
needed to meet the current and emerging needs of government and its citizens.
• The workforce will adapt quickly in size, composition, and competencies to accommodate changes in
mission, technology, and labor markets.
• Government employee satisfaction will increase.
• High performance will become a way of life that defines the culture of the federal service.”45
Source: President’s Management Agenda, FY 2002, p. 14.
OPM to assess the management of human capital (develop gap-closing strategies) in the Seven-Step
in the federal government; and provided for various Model. OPM’s step 4 focuses on implementing the
human capital management reforms.46 As a result action plan, which is the same as step 6 (implement
of its new assessment requirement, OPM created gap-closing strategies) in the Seven-Step Model. The
the Human Capital Assessment and Accountability final step in the OPM model calls for the agency to
Framework (HCAAF), which brings together the monitor, evaluate, and revise the action plan, which
five human capital systems of strategic alignment, is the same as step 7 in the Seven-Step Model.
leadership and knowledge management, results-
oriented performance culture, talent management, The Department of Transportation
and accountability. The five systems are summarized
in Appendix I.47 and the Seven-Step Model
The DOT comprises 12 entities: Office of the Secre-
OPM’s workforce planning model, presented in tary of Transportation (OST); the Federal Aviation
Appendix II, is very similar to the Seven-Step Model Administration (FAA); the Federal Highway Adminis-
of Workforce Planning. The OPM model is cyclical tration (FHWA); the Federal Motor Carrier Safety
and includes five steps. The first step calls for the Administration (FMCSA); the Federal Railroad
agency to establish the strategic direction, which is Administration (FRA); the Federal Transit Administra-
the same as step 1 in the Seven-Step Model. The tion (FTA); the Maritime Administration (MARAD);
second step in the OPM model requires an analysis the National Highway Traffic Safety Administration
of workforce supply and demand, and the projec- (NHTSA); the Pipeline and Hazardous Materials
tion of gaps. This step encompasses steps 3 (model Safety Administration (PHMSA); Research and Inno-
current workforce), 4 (assess future needs and proj- vation Technology Administration (RITA); the Saint
ect future supply), and part of 5 (identify gaps) in Lawrence Seaway Development Corporation
the Seven-Step Model. Step 3 in the OPM model (SLSDC); and the Surface Transportation Board
focuses on developing the action plan for closing (STB). The department has 52,684 employees,48 the
gaps, which is the same as the last part of step 5 vast majority (43,983) of whom work for the FAA.49
Getting to Green
To earn green status for the strategic human capital component of the PMA scorecard, an agency must do all of
the following.
• D
evelop a Human Capital Plan Linked to the Agency Strategic Plan
Agencies must implement a comprehensive human capital plan that is fully integrated with the agency’s
strategic plan and annual performance goals. The agency must use performance data to revise the human
capital plan as needed to meet strategic goals.
• C
onduct Organizational Analysis
The agency must analyze its organizational structure from the cost and efficiency perspectives and be in the
process of implementing solutions to reduce costs and/or improve efficiencies as warranted using tools such
as restructuring, staff reallocation, competitive sourcing, and e-government. The agency must also have a
process in place to identify and address changes in business needs.
• I mplement Succession Planning Strategies
The agency must have succession strategies and leadership development programs in place that result in a
leadership talent pool which meets targets for closing identified leadership gaps.
• I mplement Outcomes-Based Performance Management and Reward System
The agency must employ an outcomes-based performance appraisal system for all managers, SES [Senior
Executive Service] positions, and more than 60 percent of the workforce. The system must have position-
appropriate accountability and must have consequences based upon performance. In addition, the agency
must have at least one “beta” site that demonstrates that performance expectations are communicated
effectively to employees, the employee rating systems demonstrate effective planning and monitoring by
supervisors, and the site is prepared to move to performance-based pay.
• R
educe Under Representation
The agency must reduce under representation, particularly in mission-critical occupations. In addition, the
agency must establish a plan to sustain diversity.
• R
educe Competency Gaps
The agency must close competency gaps in mission-critical occupations and leadership positions.
• A
chieve Timely Hiring
The agency must meet the 45-day time to hire standard, 45-day notification of hiring decision standard, and
other hiring process improvement targets as set by the CHCO Council.
• A
chieve Timely SES Hiring
The agency must set and meet aggressive targets toward obtaining the 30-day hiring standard for SES positions.
• C
onduct Regular Accountability Reviews
The agency must conduct regular accountability reviews with OPM and act upon its findings. It must also
submit annual reports to the agency leadership and OPM.
Source: Standards for Success: Strategic Management of Human Capital. http://www.whitehouse.gov/results/agenda/

standardsforsuccess7-24-2006.pdf, accessed 11/24/06.
The next largest administration in terms of number human capital efforts at DOT and other federal
of employees is the FHWA with 2,874 employees. agencies, workforce planning is a more narrowly
At DOT, workforce planning is addressed at the defined activity in the federal government than it
departmental level as well as at the operating is in most state and local governments.
administration level. 50
Using the Seven-Step Model of Workforce Planning
The PMA workforce planning requirements as as an analytic framework, this section discusses
defined in the HCAAF Practitioner’s Guide provide how DOT was able to achieve early success in
the framework for DOT’s workforce plan. Because workforce planning.
workforce planning is one component of the strategic

Step 1: Definition of DOT’s Strategic Direction DOT’s forecasting models consider historical data, the
Strategic direction is provided through DOT’s five- most recent forecast, and interviews with key depart-
year strategic plan and five-year human capital plan. ment officials. The PHMSA and the RITA are newly
The human capital plan is updated annually. The created; therefore, historical data are not available. In
update includes current workforce analyses, a discus- response, some DOT administrations have developed
sion of progress on specific human capital initiatives, their own forecasts using alternate scenarios.
and initiatives that will be targeted in the next year. In
the DOT process, the strategic direction is established In projecting workforce needs, DOT and its operat-
outside of the workforce planning process. ing administrations have focused their efforts on
three government-wide mission-critical occupations
(leaders, IT professionals, and human capital profes-
Step 2: Scan of DOT’s Internal and External
sionals)55 and 10 department-wide mission-critical
Environments
job families (planning, program management, finan-
Environmental scanning is not a separate and spe-
cial management, engineer, legal, physical scientist,
cific step in the DOT workforce planning model;
transportation specialist, transportation industry
rather, it is incorporated into the workforce planning
analyst, transportation safety, and information tech-
process during the documentation of the current
nology).56 These positions comprise 78.4 percent
workforce, the identification of the future workforce
of the DOT workforce.57 For each of the mission-
supply and demand, and the development of gap-
critical occupations, DOT has conducted an analysis
closing strategies.
of demographic representation, trends, and compe-
tency levels.
Internal analysis is conducted as part of the docu-
mentation of the current workforce supply. DOT
DOT is in the process of identifying the core com-
tracks external workforce trends through a variety of
petencies for all of its mission-critical occupations.
mechanisms including membership in the Corporate
Where core competencies have been defined, DOT
Leadership Council.51
derived them from a variety of sources, including
mandates, government-wide initiatives, and internal
Step 3: Model of the Current Workforce analyses. For example, DOT created its Leadership
Following the HCAAF framework, DOT performs Competency Model using the OPM Executive Core
an annual full-scope workforce analysis and pro- Qualifications as a starting point. The model con-
vides automated support for targeted analysis.52 tains 16 competencies. Each of the four leader-
The workforce analysis is conducted using the ship levels has specific competencies designated
Civilian Personnel Data File (CPDF) maintained as critical. Using a web-based survey, DOT con-
by OPM. This data set is also used in conjunction ducted its first leadership competency assessment
with OPM’s Enterprise Human Resources’ (eHR) in December of 2005. The results showed that
Workforce Analysis Support System (WASS) and significant competency gaps existed at all levels,
the Civilian Forecasting System (CIVFORS) to fore- with wider gaps at the executive level. DOT theo-
cast DOT workforce trends.53 rizes that this is because more competencies are
required at the higher levels in the organization and
mastery is required at those levels.58
Step 4: Assessment of Future Workforce Needs
and Projection of Future Workforce Supply
IT competencies are assessed via self-assessment
The future workforce supply is computed on a
using a government-wide framework. The Federal
quarterly basis using CPDF data and the CIVFORS
IT Workforce Capability Planning and Analysis Tool
system. Projections are also computed for all mission-
(CPAT) provides additional data.59 To assess human
critical occupations. Mission-critical occupations are
capital professionals’ competencies, DOT, like all
identified at the department and administration levels.
federal agencies, uses the CHCO Council’s Human
The workforce projection includes the following
Capital Competencies Framework.60 Employees
analyses: turnover, experience level by administra-
complete a self-assessment, and supervisors review
tion, average age of incumbents in mission-critical
results for their employees and follow up with their
positions, racial and gender distribution by grade,
assessment of the employees.
and new hires by age.54
Implementing and Evaluating Succession Planning at

the U.S. Department of Transportation
The Department of Transportation requests that each Operating Administration (OA) within DOT submit answers
throughout the year to the following questions as part of DOT’s progress reports on succession planning:
• W
ho is accountable for implementing the strategies for recruitment, selection, development, and retention of
leaders for your high-leverage positions? When and how will your strategies be implemented?
• H
ow is your OA communicating these strategies to the affected groups, i.e., executives, managers/supervisors,
employees in the leadership pipeline?
• Please describe your OA’s efforts in maintaining senior-level commitment for your succession planning activities.
• P
lease describe how your OA will measure the effectiveness of your succession planning activities, including
efforts to make continuous improvement.
DOT uses one method for assessing mission-critical federal agencies. The analysis included a self-
occupation (MCO) competencies. However, the fed- assessment of IT competencies by 34 percent of
eral government mandates competency assessments the IT workforce.61 The results were compared to
which include a mix of self-assessment, supervisor the projected IT needs developed by a DOT team
assessment, and supervisor/employee assessments. using the CPAT. The results of the analysis were used
While competencies are now being established for in the development of the department’s workforce
the DOT-wide MCOs, the experience thus far action plan to address gaps in four critical IT job
indicates that DOT will continue to use external activities.62 The plan was converted into a detailed
standards, commissioned studies, and federal implementation calendar with assigned responsibili-
requirements to identify competencies. ties and due dates.
DOT has a comprehensive talent management strat-

Step 5: Identification of Gaps and egy that includes position management, recruitment,
Development of Gap-Closing Strategies succession planning, knowledge management,
Since its first workforce plan in 2003, DOT has
development and training, retention, and competi-
annually identified strategies for improving the
tive sourcing.63 DOT manages positions by review-
management of its workforce. Recruitment strategies
ing the job description and assignment for each
from 2005 call for increased entry-level hiring, out-
vacancy before it is posted to ensure the position
reach to women and minorities, and outreach to
is used where needed. This talent management tech-
people with targeted disabilities. These strategies
nique is critical for the administration to be able to
are designed to increase the diversification of the
realign the organization as needed to achieve mis-
DOT workforce and ensure sufficient talent will be
sion success. Recruitment is generally done at the
available to replace retirees. DOT’s plan also calls
administration level and is targeted to help achieve
for strategic management of mission-critical occupa-
strategic priorities. Some of the recruitment tech-
tions to ensure that they are correctly defined, ade-
niques include the use of a marketing firm to design
quately staffed, and appropriately deployed. DOT
and place ads on websites and the expansion of the
has identified a number of crosscutting competen-
applicant-tracking database—QuickHire.64
cies that are targeted for improvement in all admin-
istrations. These competencies include soft skills With a limited supply and stiff competition for
such as communication and conflict management qualified transportation professionals from public
as well as more technical skills such as project and private organizations, programs focused on
management and performance management. retention of mission-critical employees are impor-
tant to the long-term health of the department. A
A department-wide IT gap analysis was completed tool for assessing potential voluntary separations
in late 2005 in response to an OMB request of all is the federal Human Capital Survey. DOT and all

DOT Checklist for Success

In its report, Department of Transportation Leadership Succession Planning Model, the department sets forth the
checklist below to enhance the department’s succession planning. The following list provides examples of touch-
stones for evaluating an organization’s succession plan.
Insure Strategic Alignment—the organization has a consistent method to track or insure that:
• S enior executives provide clear and visible support for succession planning, including, for example, utilizing
succession plans to seek candidates for key positions and tracking “talent pipeline development” as a metric
of organizational success
• C
ontinual assessment of leadership competencies guides recruitment and selection decisions, targets
effective learning strategies, and promotes better program performance against strategic priorities through
more effective leadership
Identify Key Positions—the organization has a consistent method to track or insure that:
• The highest leverage positions are clearly identified
• The key competencies/experiences required for key positions are clearly communicated
• Employees can see the career path to key positions in a leadership pipeline at multiple levels of
the organization
Identify Key Talent—the organization has a consistent method to track or insure that:
• Employees in the leadership pipeline are assessed against mission critical competencies
• Employees in the leadership pipeline have, and are acting on, plans to close any competency gaps
• Leaders may enter the pipeline at any level if they have acquired qualifying competencies
Deploy Key Talent—the organization has a consistent method to track or insure that:
• Leadership talent comes from a planned blend of internal and external sources
• Leadership competencies are the decisive factor in selecting new supervisors, managers and executives
• D
evelopment includes experiential learning (e.g., rotations, targeted reassignments, action learning, coaching
and mentoring) in addition to classroom and online training
• Selection processes are inclusive and offer opportunity to candidates from diverse backgrounds
• The organization has assessed its vulnerability to incumbent loss in the highest leverage positions, and acted
to minimize loss
Assess Effectiveness—the organization has a consistent method to track or insure that:

• Development programs increase employees’ ability to perform in their current positions
• Development programs produce qualified candidates for key positions and “one-deep” leadership positions
• Development and selection processes produce leaders who can perform well in their new positions
• Current and potential leaders are motivated to remain and grow in their careers within DOT
other federal agencies track “intent to stay” among each leader is responsible for identifying and pre-
current employees as a leading indicator of possible paring possible successors.65 Internal candidates can
retention problems. enter the pipeline at any level as long as they are
qualified. The model emphasizes level-appropriate
The department’s succession planning model development and seeks to ensure that as leaders
emphasizes the leadership pipeline in which the advance in the hierarchy, their leadership skills and
department develops leaders at every level, and competencies also advance.
Knowledge management is a part of the workforce objectives. In each of these areas, DOT has empha-
planning system. DOT has a working group to sized reaching out to the targeted communities
address knowledge management issues. One point through a variety of methods, building the pipeline
of success is FHWA’s Chief Knowledge Officer, who of qualified applicants, and actively recruiting tar-
oversees the knowledge management initiatives in geted groups. With the exception of increasing the
the administration. In support of training and devel- diversity of DOT’s applicant pool and increasing the
opment, DOT has implemented the Electronic Learn- percentage of Hispanics hired, the strategies have
ing Management System (eLMS), a software system not been particularly effective.
that also serves as the department’s Competency
Management System. Through the system, employees Succession planning is also a significant goal for
can take web-based courses and track their profes- DOT. So much so that during FY 2004, DOT imple-
sional development activities. The other strategic mented a succession planning model that included
investment DOT made was in the development of mission-critical skill sets in executive-position
executive and leadership groups. This focus was descriptions as well as subcommittees to monitor
assigned to the administrations as well.66 succession planning efforts.73
Several administrations within DOT used their com- Step 7: Evaluation and Revision of Strategies
petitive-sourcing flexibilities to meet strategic human DOT performs extensive assessment of the implemen-
capital priorities. For example, FHWA used competi- tation and impact of its workforce planning strategies.
tive sourcing to fill vacancies for needed competen- Like all executive agencies, DOT is assessed quarterly
cies.67 The FAA used the A-76 process to reduce by OMB on its progress toward achieving the goals of
operating costs and streamline operations.68 The the PMA including human capital goals. In addition,
FAA also used competitive sourcing to achieve a the department monitors its human capital readiness
$2.2 billion estimated cost savings on the operation and progress toward its seven major human capital
of the Automated Flight Service Station program.69 goals and related milestones regularly through its
annual workforce planning report.
Step 6: Implementation of Gap-Closing
Strategies Workforce Planning Successes
In 2005, DOT created a new position, manager of The 2006 update to DOT’s workforce plan docu-
PMA/human capital programs, to ensure the departments a number of workforce planning successes
ment focuses on implementing and evaluating human including increased entry-level hiring,74 increased
capital strategies in addition to ensuring other hiring of Hispanics,75 and progress in succession
requirements of the PMA are met.70 Implementation planning.76 The department is addressing entry-level
is further coordinated through working teams that hiring, a high priority for DOT, through a combina-
include senior managers from all of DOT’s adminis- tion of traditional and innovative programs with an
trations.71 Progress is monitored annually through emphasis on targeting for results. For example, the
the department’s annual workforce planning report. Transportation Career Residency Program is being
piloted as a strategy for bringing new hires into
A primary strategy for building the DOT talent pool mission-critical occupations and providing them
is a focus on entry-level hiring. To ensure success, with training in areas where skill gaps have been
DOT is focusing on differentiating its message to identified. Students are being targeted through a
various segments of the labor pool to enhance its variety of traditional as well as innovative programs
appeal as an employer of choice. DOT has nine including student loan repayments, temporary
programs designed to draw students to the organiza- employment, and internships.
tion. DOT has also authorized the use of incentives
such as student loan repayment to attract and retain DOT seeks to improve the diversity of its workforce
desirable employees.72 As a result of its efforts, DOT through increased hiring of women and minorities.
has increased entry-level hiring. It implemented a number of targeted outreach
programs and administered the Air Traffic Selection
DOT has made increasing representation by females, and Training exam to increase the number of
minorities, and persons with targeted disabilities key women and minorities in entry-level air traffic

controller positions. The diversity of its applicant While DOT developed an organization-wide human
pool increased; however, representation among capital plan, the process offered flexibility for the
new hires increased in proportion to the applicant individual administrations to identify their own
pool only among Hispanics. human capital gaps and implement their own strate-
gies. Providing flexibility in a centralized model
DOT’s succession planning efforts focus on strate- allows for each administration to effectively address
gic leadership. The competency analysis for leader- its own issues.
ship positions has been completed, along with an
assessment of current leader competencies.
Potential sources have been identified to meet suc-
Challenges
cession planning targets. The model was so suc- Even though DOT, like all federal departments and
cessful that GAO cited it as a best practice. agencies, is mandated to perform workforce plan-
ning, has support from OPM, and has staff dedicated
In 2005, DOT improved its ability to assess to the design and implementation of the workforce
employee performance by moving all employees’ planning program at the departmental and adminis-
performance plans to multi-level systems that could tration levels, the organization still faces consider-
“make distinctions among levels of performance.”77 able challenges. These findings are based upon
review of publicly available documents.
Success Factors
Even at DOT, where workforce planning is staffed
DOT has achieved success in its workforce planning and supported, there is not enough time or resources
efforts as evidenced by its “green” status on the to address all of the identifying staffing gaps.
PMA Human Capital requirement. Several factors
led to DOT’s success. DOT has been successful in identifying competen-
cies for leaders, human capital positions, and IT
The DOT workforce planning mandate is a success positions. However, additional work remains to be
factor for the department. OPM supported imple- done to further define competencies and assess the
mentation of the mandate with guidelines, access strength of the workforce. DOT will be focusing its
to data, and centralized data collection for the efforts on mission-critical positions.
human capital survey. Because human capital was
on the President’s Management Agenda, it became DOT has identified the need to improve crosscutting
a high priority for agency leaders. Congress’ rein- skills in several key competencies such as communi-
forcement of the mandate through the Chief Human cation, conflict management, financial management,
Capital Officers Act further enhanced the support of and contract management. The use of planning coun-
agency leaders. cils within the administrations is the primary tool for
maintaining a focus on these skills in recruitment,
DOT was required to have a designated Chief Human training, and staff placement.78 Another tool has
Capital Officer who was required to oversee devel- been the creation of training classes with employees
opment and implementation of the human capital from across DOT administrations.
plan. An elaborate committee structure ensured
broad participation in the planning and implementa- As with the rest of the federal government, the pool
tion process. Access to accurate and reliable work- of available talent is shrinking, and DOT competes
force data made it easier for DOT to conduct its with other federal agencies for employees with tech-
current state assessment and project future needs. nical skills and an interest in aeronautics and safety
engineering.79
Human capital tools, guidelines, and competency
clusters developed by OPM and other federal sec- DOT has been successful in generating a more
tor workgroups were shared freely among the fed- diverse applicant pool that better represents the
eral agencies. This lessened the learning curve for population. However, achieving diversity in the
those developing and assessing competencies and department remains a challenge since DOT has
skill sets, conducting gap analyses, and making been unable to convert the increases in minority
recommendations. applicants to an increase in monitory employees
Lesson 3: Forecasts are useful in projecting

Lessons Learned likely scenarios.
Forecasts should take into consideration possible
Lesson 1: Sharing workforce planning resources, future scenarios: optimistic, pessimistic, and
tools, and techniques among various agencies
maintenance of the status quo. By examining alter-
speeds the implementation of workforce planning.
nate scenarios, the department will be better pre-
Lesson 2: Time and budget constraints can be pared for the future.
significant barriers to implementation.
Lesson 3: Forecasts are useful in projecting likely

Summary
scenarios. At DOT, the supply and demand assessment and
resulting gap identification are accomplished
through a variety of methods, including mandated
at a satisfactory rate. The only bright spot has federal tools (CHCO Council human capital com-
been an increase in the number of Hispanics petencies), voluntary tools (IT government-wide
hired in proportion to their representation in the competencies), modified tools (OPM Executive Core
applicant pool.80 Qualifications), and in-house tools (DOT Competency
Assessment and Management Tool).83 DOT has been
DOT set and met a target of 3 percent of new hires able to focus its gap-closing activities on mission-
to be people with targeted disabilities.81 Recruiting critical occupations. DOT has also been able to
people with disabilities remains a challenge. develop and implement strategic initiatives to correct
significant process weaknesses and address strategic
Lessons Learned workforce issues such as workforce composition. The
From DOT’s workforce planning experiences several central support and local flexibility appear to allow
lessons can be learned. DOT to remain focused and strategic without being
overburdened by requirements.
Lesson 1: Sharing workforce planning While DOT has achieved green status for its human
resources, tools, and techniques among various capital efforts,84 federal agencies overall still face
agencies speeds the implementation of work- several challenges with regard to strategic human
force planning. capital management. Specifically, leadership focus
For example, the workforce data sets and tools is needed to complete multiyear transformations.85
developed by OPM were critical to DOT’s work- Additionally, federal agencies need effective work-
force analysis. The leadership competencies devel- force plans focused on achieving results through stra-
oped by the CHCO Council were used to develop tegic human capital planning; acquiring, developing,
DOT’s leadership competencies. The IT competency and retaining talent; and linking pay and rewards to
framework developed by OPM was modified for performance and organizational results.86
DOT’s use. DOT borrowed liberally from other
federal initiatives, tools, and agencies.
Lesson 2: Time and budget constraints can be

significant barriers to implementation.82
To overcome these barriers, DOT has identified the
need to be strategic about how initiatives are imple-
mented. For example, it has identified the significant
costs associated with early-outs ($25,000 plus accu-
mulated leave cash-out). Therefore, the department
recommends that the administrations be strategic
about which positions are offered early-outs; convert
high-grade positions to lower-grade positions to free
up resources; and complete early-outs in the first
quarter of the year.

Workforce Planning at the Maryland

State Highway Administration
Unlike DOT, the Maryland State Highway Adminis- SHA is well ahead of the rest of the state of
tration (SHA) is not required to engage in workforce Maryland and most state departments of transporta-
planning. The agency undertook the initiative as tion across the country in terms of workforce plan-
one component of a broader initiative to improve ning. As of November 2005, only 10 percent of state
the management of the organization. This section transportation departments reported having a work-
discusses the environment surrounding SHA’s workforce plan in place.87 However, more seem to recog-
force efforts and the evolution and implementation nize the impending problem. Twenty percent of state
of workforce planning at SHA. departments of transportation are in the process of
developing or updating their workforce plans. Prior
SHA’s Workforce Planning to beginning the current workforce planning initia-
tive, SHA had not undertaken an agency-wide, sys-
Environment temic workforce planning effort. This is not to say
SHA’s workforce planning challenges are significant that workforce planning was ignored in the agency.
for several reasons. First, SHA has been hard hit by In 2002 one office, the Office of Materials and
the state’s downsizing trend. Between 1985 and Technology, undertook a comprehensive and strate-
2005, SHA’s workforce decreased by 19 percent. gic workforce planning, office reorganization effort
Second, SHA is expected to be one of the hardest in response to a 44 percent decrease in staff over
hit and earliest hit agencies in Maryland in terms of the prior 10-year period. The resulting plan reduced
staff loss due to retirements. Third, given the highly the number of operating units from 22 to 13, elimi-
technical and specialized nature of many SHA nated the need for regional labs, and organized the
functions and jobs and the possible loss of 50 per- office around technical divisions instead of regions,
cent of the workforce in the next 10 years, there is divisions, and technical teams.88
a significant possibility that much of the accumu-
lated knowledge of the administration will be lost Workforce Planning in Maryland
with the retirees. Fourth, the administration faces
Maryland does not have a comprehensive workforce
stiff competition for employees with advanced
planning system, nor are state agencies required
skills in engineering, finance, information technol-
to engage in workforce planning. A very modest
ogy, accounting, and procurement. Fifth, non-com-
workforce planning effort was initiated through the
petitive compensation packages often make state
FY 2006 budget submission process, where agencies
employment less attractive to potential employees.
were asked to submit a review of workforce needs.89
Sixth, the shift from direct provision of highway
This is not to say that Maryland thinks workforce
construction, maintenance, and emergency opera-
planning is unimportant. In fact, Maryland’s Depart-
tions to an increase in the use of outsourcing to
ment of Budget and Management (DBM) formed a
provide traditional services means that SHA per-
multi-agency taskforce in August of 2003 to develop
sonnel in the future will need different and possi-
workforce planning guidelines for state agencies.90
bly more complex skill sets to procure and manage
Prior to November 2005, when DBM was required
contractor services.
to submit a workforce planning progress report to
Figure 3: Maryland State Highway Administration Workforce Planning Timeline
2002 First comprehensive analysis of potential retirements.
Creation of succession planning team.
2003 Establishment of SHA University.
Appointment of Neil Pedersen as acting and later permanent administrator.
2004 Beginning of the integration of business planning.
2005 Start of strategic business planning efforts.
Development of Vision for Performance Excellence.
Comprehensive study of workforce planning.
Assignment of knowledge management to Advanced Leadership Program

(ALP) class.
2006 Acceptance of applications for the initial succession planning program.
Completion of SHA College of Engineering Catalogue.
Source: The timeline was created from information provided by SHA managers and collected from SHA documents.
the Maryland General Assembly, the issue had audit, the Maryland General Assembly requested
gained little traction in Maryland. DBM to submit a progress report on the status,
projected development, and implementation of
A 2005 performance audit of Maryland’s workforce Maryland’s workforce planning efforts.
planning efforts by the Maryland Office of Legislative
Audit (OLA) found that 12 percent of the state’s In its report, DBM indicated that Maryland’s work-
workforce was eligible to retire immediately (as of force planning efforts to date have been ad hoc,
June 30, 2004); 28 percent will be eligible by June informal, and in response to specific needs identi-
30, 2009; and 45 percent will be eligible by June fied by agencies. While informal, the department’s
30, 2014.91 The audit also found that Maryland was workforce planning efforts did focus on addressing
doing little centrally or at the agency level to some of the more urgent issues facing many state
address workforce planning issues. The audit report agencies.93 Specifically, DBM focused its efforts on
recommended that Maryland undertake a formal updating selected job classifications and adjusting
workforce planning process.92 Following up on the salaries accordingly; authorizing signing bonuses for

classifications with recruitment and retention prob- eligible to retire within five years.98 It became imme-
lems; streamlining hiring practices for hard-to-fill diately clear that a mass retirement wave could seri-
positions; and implementing outreach and employ- ously jeopardize the administration’s ability to fulfill
ment programs for targeted recruitments. DBM its mission. In response, SHA developed a taskforce
intends to focus its workforce planning efforts on composed of 25 to 30 people to address succession
“potential retirements and recruitment and reten- planning issues at the agency.
tion.”94 The state of Maryland has officially adopted
the OPM model for its workforce planning efforts.95 In a parallel, but mostly unrelated, effort, the Office
of Administration sought to improve the efficiency
of its mostly decentralized training programs by
The Evolution of Workforce Planning reorganizing the offerings under the auspices of a
at SHA new SHA University. The university structures the
SHA has a long history of informal workforce plan- administration’s training offerings under three col-
ning. In the early 1990s, under the leadership of leges: the College of Engineering, the College of
Administrator Hal Kassoff, SHA engaged in a series Operations, and the College of Administration.
of Year 2000 planning exercises in which each office Initially, the program was focused on identifying
was required to project how they would manage curricula for specific job classifications and providing
with a 10 percent and 20 percent staff cut. While a comprehensive catalogue of course offerings. The
this was not a formal workforce planning effort, this program has since evolved into a key partner in the
exercise created an awareness among SHA manag- organization’s workforce planning efforts, with a
ers of the continual need to assess contingency primary emphasis on its role as a partner in imple-
options for staffing.96 menting organizational development as a means to
meet strategic staffing needs.
The exercise proved valuable in 1996 when
Maryland offered early retirement buyouts for In 2003, Neil Pedersen, a longtime SHA senior
eligible state employees. Under this program, SHA manager and deputy administrator, was appointed
lost 10 percent of its workforce. In addition to this administrator. In his new capacity, he spent a signifi-
unexpected wave of retirements, SHA experienced cant amount of time studying the Malcolm Baldrige
several periods where its capital program budget Criteria and assessing its utility to SHA.99
increased dramatically, but without a concomitant
increase in staffing. Under these circumstances, Administrator Pedersen decided to use the Baldrige
SHA had to explore alternative staffing strategies, principles as the basis for his management of SHA
including outsourcing and on-site consultancies. because they represented the best in contemporary
Through these exercises, SHA’s top management management practice. Mindful of the negative effects
experienced workforce planning and strategic think- of initiative overload, Pedersen decided instead of
ing about staffing, but without the benefit of formal creating yet one more initiative, he would use the
expert advice or a model to follow. Baldrige principles to give structure and vision to the
nascent Performance Excellence initiative. SHA used
More formal workforce planning at SHA began the Baldrige criteria to engage in an office-by-office
somewhat tentatively in 2002 when Deputy Direc- and organization-wide self-study process. Pedersen
tor for Administration Richard Smith requested an believed that through the Baldrige self-study process,
analysis be conducted of the possible impact of senior managers and their teams would engage in a
retirements on the administration. The results of “self-discovery process” that would enable them to
that analysis were startling. A significant number of identify changes that needed to be made in business
SHA employees were eligible to retire in the next processes and ways of doing business.100
five years. A later workforce planning study found
that of 160 leadership positions in the succession However, self-discovery was not enough. Pedersen
planning program, 89 incumbents could retire at realized that SHA had numerous initiatives under
will, 12 positions were vacant, and the remainder way with regard to workforce planning, leadership,
could retire within five years.97 The 2004 OLA audit business planning, and customer satisfaction, but that
showed that 35 percent of the SHA workforce was it lacked a unifying strategy and vision. A presenta-
tion by SHA’s Advanced Leadership Program led
Pedersen to the understanding that he, as the leader • Recognizing strategic staffing as key to fulfill-
of SHA, must create a compelling vision of where ing its business objectives
he wanted the organization to go. This led to the
• Attracting and retaining highly-qualified
creation of SHA’s Vision for Performance Excellence
employees
in the fall of 2005. While the Vision for Performance
Excellence was Pedersen’s brainchild, the actual • Equipping its employees with the skills and experi-
document detailing the vision and implementation ence necessary to meet future workforce demands
plans was the product of months of work by SHA’s
• Retraining and reassigning employees to take on
leadership team and was vetted by SHA’s Senior
new duties when their current functions are no
Management Team (SMT). This process helped SHA
longer necessary to its business objectives
create buy-in throughout its management ranks.
• Supplementing its workforce with capable
Through the Vision for Performance Excellence, partners through on-site staffing and project
Pedersen sought to improve the overall manage- outsourcing
ment, decision making, and strategic action of the
• Utilizing the right people, with the right skills,
organization. The initiative has five components:
in the right positions in order to deliver on its
business objectives103
1. Visionary leadership
2. Business planning and performance At the same time that SHA’s leadership team worked
measurement on the vision and implementation plan for work-
force planning, the organization hired a consultant
3. Process improvement and management
from a local university to conduct a workforce plan-
4. Workforce planning and development ning assessment.104 The report, “Planning for the
Future: A Workforce Needs Assessment for Maryland
5. Customer communication, service, and
State Highway Administration,” was completed in
satisfaction101
July 2006. It included an internal and external
assessment of the trends impacting SHA’s workforce
For each component, the administrator, aided by
and workforce needs. The internal analysis included
the leadership team, drafted a memo outlining the
an assessment of staff distribution, supplemental
organization’s vision for how SHA would achieve
staffing patterns, and overtime utilization.
excellence in that component area. Included with
each memo was an action plan defining how the
A comparative salary analysis was also conducted
initiative would be implemented. In 2005, SHA cre-
for several key positions. The report summarized the
ated the Performance Excellence Unit to support
findings from in-depth, office-level workforce plan-
the functions associated with the implementation
ning assessments led by each office’s senior man-
of Performance Excellence.
ager. It identified core knowledge sets to build or
retain; areas were additional staffing is warranted;
Vision for Workforce Planning functions for which an evaluation of organizational
As defined in the workforce planning and develop- structure is warranted; and opportunities for out-
ment component of the Vision for Performance sourcing functions. As such, the report provided the
Excellence, SHA has an ambitious vision for work- baseline data needed for the organization to move
force planning and development: “SHA delivers forward with designing and implementing workforce
on its mission through effective business planning, planning strategies.
strategic staffing, succession planning, knowledge
management, and formal and informal learning SHA’s Workforce Planning Model
opportunities that support the organization’s pursuit
SHA’s Workforce Planning Action Plan presents five
of excellence.”102 Through this component, SHA
interrelated and mutually reinforcing components:
committed itself to:
1. Business planning
• Projecting and prioritizing future workforce
needs in concert with business planning 2. Strategic staffing

Figure 4: SHA’s Workforce Planning Model
Business
Planning
SHA Strategic
University Staffing
The right People with
the right Skills in
the right Job doing
the right Tasks
Efficiently and
Effectively
Knowledge Succession
Management Planning
Source: Created by the author to represent SHA’s process.
3. Succession planning plan. Members from the SMT identify the strategic
direction for SHA and develop a supporting busi-
4. Knowledge management
ness plan. The direction from these documents
5. The creation of the SHA University serves as the foundation for the workforce plan.
The plan wove together activities that were already Using the Baldrige assessment process, each office
under way in the areas of business and succession identifies its key processes and opportunities for
planning and under way at SHA University with the business process improvement. Annually, senior
leadership team’s desire to focus on strategic and managers meet with the leadership team (adminis-
optimal staffing. The process of trying to articulate trator and deputy administrators) to discuss their
a vision and implementation plan that comported business plan, workforce needs, and opportunities
with the “science” of workforce planning led to the for collaboration. The Performance Excellence Unit
inclusion of knowledge management and an expan- documents the models used for calculating work-
sion of the administration’s view of strategic staffing. force needs. Finally, each office completes an orga-
The process for each component and the current nizational assessment to ensure it is organized and
implementation progress to date are summarized in staffed appropriately to meet the objectives defined
the paragraphs that follow. in its business plan.
SHA has been successful with implementing the busi-

Business Planning105
ness planning process. In addition to addressing the
Under the guidelines of the business planning pro-
primary outcomes of its principal business units as
cess, each senior manager is required to participate
required under Maryland’s Managing For Results
in a strategic vision session with a 10-year time
mandate, SHA’s business planning process requires
horizon. The insights from this session inform the
each office and district to develop a detailed, results-
development of each manager’s strategic staffing
oriented, data-driven plan to address major strategic,
workforce planning, and organizational design issues, For SHA, strategic staffing has not turned out to be
as well as to focus on improving the outcomes of the exact science many would have preferred. Many
key business processes. With the development of the functions performed by SHA employees and consul-
Vision for Performance Excellence initiative, the SHA tants are unique, making the calculation of optimal
business plan became the foundation and starting staffing on a formula basis impossible. For unique
point for the remainder of SHA’s workforce planning and specialized functions, “right-staffing” will con-
model. As part of the business plan, each office is tinue to be more of an art than a science. Many of
required to document any special workforce implica- the operations and road maintenance functions (such
tions of strategies and action plans. as mowing, plowing, repairing potholes, and road
paving) performed by SHA employees, consultants,
and contractors are the type of high-volume tasks
Strategic Staffing106
that lend themselves to traditional workload and
Under the strategic staffing process guidelines,
staffing analysis. For these types of activities, SHA is
each senior manager identifies who, by position
moving ahead to develop workload analysis models
type (SHA employee, contractor, consultant, tempo-
to project required staffing levels.
rary personnel, or intern), staffs each of his or her
office’s key business processes. Next, senior manag-
However, SHA’s leadership recognized that the stra-
ers identify all functions that must be performed (by
tegic part of strategic staffing must focus on answer-
law, regulation, professional, or ethical standard) by
ing two questions. First, who (permanent employee,
SHA employees. For each “SHA only” function, the
consultant, or contractor) is the best choice to per-
senior manager develops a list of the core compe-
form a given task or provide a specific service?
tencies, skills, and credentials required for success-
Second, what types of skills will be needed to per-
ful completion of the function in the mid and long
form mission-critical functions?
term. Each office projects its future staffing needs in
terms of types of employees, number of employees,
The answer to who is the best choice is determined
and skill sets required to achieve the results set forth
by understanding how to best deploy SHA staff. In
in the business plan. Finally, each office analyzes
an era of downsizing, right-sizing, and outsourcing,
the gap between projected staffing and long-term
government organizations must be strategic in deter-
staffing needs for critical business functions.
mining which functions will be performed by agency
staff and which will be performed by consultants,
SHA has had limited success with implementing
vendors, or partners. Excessive or poorly reasoned
the strategic staffing guidelines. The original focus
outsourcing can leave an organization short on criti-
of SHA’s recent workforce planning efforts was on
cal skills and unable to monitor appropriately the
optimizing staffing at the administration and office
work of consultants or vendors. Outsourcing plum,
levels.107 As the administration continued to work
challenging technical assignments to consultants
on developing and implementing its workforce
can demoralize gifted employees and create gaps
planning model in line with the “science” of work-
in organizational knowledge.
force planning, the leadership realized that strate-
gic staffing was one small piece of the workforce
The answer to what types of skills will be needed
planning puzzle.108
is critical to ensuring that an agency hires employ-
ees that provide value to the organization now
In the spring of 2005, senior managers completed
and into the future. Assessing the likely impact of
the position inventory. The major functions were
changes in technology, innovations in key pro-
identified for each office and a table was created
cesses, customer expectations, and industry trends
showing what percentage of time each position
on what will be expected of employees is critical
spent on each function. The primary purpose was
for determining who to hire, where to recruit, and
to get a good picture of staffing patterns by function
how to develop employees.
instead of the traditional office-level view. Future
analyses of staffing by function will incorporate
The example provided by the Office of Materials
the Baldrige key processes and support processes
and Technology (see the sidebar “Strategic Staffing—
developed by the offices during their Baldrige self-
One Office’s Experience”) shows how one office in
assessment study.

Strategic Staffing—One Office’s Experience

SHA’s Office of Materials and Technology (OMT) developed a strategic staffing model in 2002, well before SHA
started “official” workforce planning efforts. In 2002, OMT found itself in the position of having lost 44 percent
of its workforce, and much institutional knowledge, during the prior 13 years. The staff had decreased from
approximately 500 employees in the early 1980s to 204 today.109 Of the remaining staff, more than 31 percent
were at least age 60 or had 30 years of service and another 15 percent were at least age 55 or had 25 years
of service.110 As a result, OMT was faced with a smaller workforce, almost half of whom were able to retire in
the immediate future. This created the potential for organizational failure or the perfect opportunity for restruc-
turing for success.
OMT chose to view the situation as the perfect time to restructure. Under the leadership of Peter Stephanos, the new
director of OMT, the office undertook a comprehensive organizational analysis. The analysis resulted in a blueprint
for change entitled “A Strategic Plan for the Future of the Office of Materials and Technology.” The guiding principle
of the planning effort was to determine how OMT could be most effective in fulfilling its mission given the new
reality of a dramatically smaller staff that would not be restored to prior levels, a loss of organizational knowledge,
and aging facilities spread across four locations throughout the state.
The planning process was thoughtful and thorough, and included the following elements:
• The solicitation of customer feedback on office performance and an analysis of customer needs
• A complete evaluation of business processes by staff within OMT
• An investigation of partnering opportunities with local universities
• Meetings with key industry stakeholders, who rely on the work of OMT, to discuss their expectations and needs
• Best practice analyses of other state agencies to identify how OMT could carry out similar functions
• An assessment of how other offices within SHA carried out their administrative functions
The result was a plan that reduced the overall staff size from 204 to 195; centralized functions into one location;
closed the regional laboratory facilities; outsourced a significant portion of the laboratory work; reduced the
number of operational units from 22 to 10; greatly reduced the administrative staff (40 percent decrease); and
decreased the technical resources needed by 42 percent.
The resulting strategic plan dramatically altered how OMT does business. The aging facilities were closed and
operations were consolidated into two new locations, resulting in a projected facilities savings of 25 percent of
current operating costs and the opportunity to generate $5 million in revenue from the sale of the surplus facilities.111
Costs associated with administration were decreased by $300,000 as a result of a resource-sharing plan in the new
centralized facility. Operational efficiency is expected to improve through the more efficient use of resources and
the elimination of duplicate equipment in multiple facilities.
However, one of the most important

Figure 5: OMT Staff Distribution Changes
accomplishments is the dramatic change
that will occur in the staffing patterns of Technicians
the organization. Doing more with less
means that each member of the work- Engineers
force needs to be able to do more. OMT
responded to this reality by creating a
Consultants Proposed Staff
workforce that is more versatile, more
professional, and more focused on key Existing Staff
Managers
business processes. As shown in Figure 5,
the proportion of technicians and admin-
istrative staff will decrease dramatically, Administrative
while the proportion of engineers, consul-
tants, and managers will grow significantly.
The new staff composition positions OMT 0% 20% 40% 60%
to create its future workforce now. Source: Stephanos, OMT Reorganization Summary, Unpublished Report.
SHA approached the issue of developing a staffing Committee includes three steps. First, the SHA
plan to support its strategic plan. Other offices in Succession Planning Worksheet is completed for
SHA will be looking at their strategic staffing needs each position or class of positions. The worksheet
using the process outlined in the Vision for summarizes the responsibilities of the position;
Performance Excellence. Specifically, each senior required technical skills and competencies; required
manager will be leading an analysis of key business knowledge sets; and required candidate qualifica-
processes for his or her office. As a result of the tions, including work experience, educational
analysis, managers will identify which activities are credentials, licenses, or certifications. The worksheet
most appropriately completed by SHA employees, also includes information about the likely or tradi-
which should be outsourced, and which can be tional candidate pool for the position.
eliminated or consolidated. Once managers are
clear on the functions to be performed by SHA Second, the program is advertised and applications
employees, they are charged with identifying, for are accepted. Applications must include supervisor
the mid and long term, the credentials, skills, and and division chief approval as well as evidence of
competencies that will be required to fulfill the the applicant’s satisfactory performance in his or
function. These will be compared to the expected her current position. Finally, the succession plan-
skill mix. From this comparison, the gap between ning “class” is selected and their participation in
expected need and supply will be identified. The the program begins.
gap analysis will provide data to direct recruitment,
training, succession planning, and partnering SHA is beginning to implement its succession
efforts. Such an analysis was conducted by the planning processes. As stated earlier, succession
OMT in 2002. planning predated the formal workforce planning
efforts at SHA. Unlike the federal DOT succession
planning program, SHA’s succession program
Succession Planning112 includes high-level technical experts and leaders.
Under SHA’s succession planning process, senior
To be included in the plan, a position must require
managers identify critical leadership and technical
special education, skills, expertise, or experience
positions that should be included in the SHA Suc-
that were not easy to come by and were often
cession Planning Program. For each position placed
learned on the job. Positions on a list of pending
in the Succession Planning Program, the supervising
retirements were examined on a case-by-case basis
senior manager identifies the core competencies,
to determine if they fit the criteria for inclusion.
skill sets, experiences, and credentials required for
The SHA senior leadership team made the final
candidates to be successful in the mid and long
determination about which positions were included
term. SHA ensures that employees will be prepared
in the formal succession planning list. The final
to fill critical leadership, professional, and technical
succession planning priorities list included 30 posi-
positions through the provision of training, rotations,
tions that were either senior managers or division
mentorships, and so on.
chiefs. The leadership team also identified two
functional groups for inclusion in the succession
Succession planning at SHA is to be both formal
planning program: roadway maintenance and
and informal. The formal succession planning process
roadway construction.
as developed by the Succession Planning Executive
What Is Included in the SHA Succession Planning Program?

The SHA succession planning program does not guarantee promotion to the enrollees. Rather, participants are
given the opportunity to participate in an in-depth skills assessment to determine their readiness for the position
to which they aspire. Participants then review their level of preparedness during a coaching session with the man-
ager of their division. During the coaching session, the employee and manager jointly create a prioritized profes-
sional development plan for the employee. Development and training opportunities are provided in-house as well
as externally through universities, trade associations, and other vendors. Employees are tracked for a two-year
period to determine what progress they have made developmentally and in terms of promotions.

SHA’s Succession Planning Program for District Engineer for Maintenance113

• C
ompletion of the Succession Planning Worksheet: This summarizes the responsibilities of the position;
technical skills and competencies needed; knowledge sets needed; required candidate qualifications,
including work experience, educational credentials, licenses, or certifications; and information on where
the candidate pool should be recruited from.
• Program Advertisement: The program is advertised.
• A
pplication: Candidates complete an interest form upon which they specify their geographic area of interest
and target position. The employee’s supervisor and division chief must sign the form. Required with the
application are the employee’s two most recent performance appraisals and an employment application.
• M
inimum Requirements: Applicants must have earned “meets standards” or better performance on their two
most recent performance appraisals and have not had a disciplinary suspension within the past 12 months.
• P
rogram Activities: Employees and their supervisor complete an employee skills assessment. A coaching
session is conducted by an Assistant District Engineer. The two assessments provide a foundation for the
session. Together, the ADE and the employee develop a prioritized skill improvement plan. Resources are
available both in-house and from external sources.
• Results Tracking: Participants’ development activities and career movement will be tracked over two years.
• N
otes: Succession Planning Program does not define the pool of applicants for the position, nor does it
guarantee employee promotion. Those outside the program are still eligible to apply for vacancies.
• V
alue Added: Through the program, a candidate pool for a mission-critical occupation is developed and their
skills are assessed. Candidates are provided a coaching session in which a series of developmental activities
are identified based on the results of the skills assessment. This adds value to the Professional Development
Plan (PDP). Finally, participants are given exposure to upper-level management in the organization.
The formal succession planning effort for roadway By the end of 2004, a smaller group of eight
maintenance and roadway construction began in people became the Succession Planning Executive
2002 when a team of 25 to 30 people was created Committee, which replaced the larger succession
to work on the issue. Included in the team were planning team. Lead responsibility for the succes-
representatives from across the organization and at sion planning program became vested in a staff
various levels of management. A first larger group person in the Office of Administration who contin-
contained five subcommittees: ued to be advised by the Succession Planning
Executive Committee.115
1. Position identification
The preliminary position priorities for the mainte-
2. Data integration nance succession planning program were those of
3. Survey and marketing assistant district engineer (ADE) and resident main-
tenance engineer (RME). However, further investi-
4. Corporate memory gation revealed that pool of potential successors
5. Core competencies114 was at even higher risk for retirement—which led
to a revision and expansion of the succession plan-
ning program to include RME and assistant resident
From 2002 through 2004, this larger group met quar-
maintenance engineer (ARME) positions.116
terly. They focused on conducting research, bench-
marking best practices, and defining how succession
The manager of the succession planning program
planning could work at SHA. The Minnesota DOT
worked with an existing SHA group, the Statewide
model became the framework for its succession plan-
Maintenance Quality Council (SMQC), to design the
ning efforts. However, the model was customized for
RME and ARME succession planning programs. The
SHA’s culture.
SMQC includes those who have the most complete
What Is SHA University?

A virtual university organized around SHA’s three colleges, each representing one of SHA’s key functional areas.
The colleges are engineering, roadway maintenance, and administration. The university offers a course catalogue
and curriculum guide for each college. The guide lists recommended courses for each job classification in
the area. The university also provides a database for tracking employee progress toward achievement of their
development plan.
Source: Barnard interview.
view of education, skills, competencies, and expe- procedures. The administration is undertaking an
rience required to be successful in the RME and initiative to put all of its manuals, policies, and pro-
ARME positions. cedures on the administration’s intranet. Communities
of practice are being developed across the organiza-
The succession planning effort for maintenance tion to facilitate knowledge sharing.
included two important departures from traditional
thinking. First, SMQC focused strategically on identi-
SHA University119
fying the educational background, skills, and experi-
The Vision for Performance Excellence calls for the
ence needed in these positions instead of promoting
SHA University executive committee to develop
people primarily by years on the job. Second, the
curricula to provide employees with the opportunity
succession planning efforts included a broader
to acquire the skills and competencies identified as
pool of potential applicants beyond the typical group
critical through the business planning, strategic
of successors. The program’s inaugural application
staffing, and succession planning components of
process in October of 2006 netted 65 applica-
the workforce planning program. In addition, the
tions.117 A second succession planning program for
university will provide supervisors with training in
another mission-critical classification is currently
career coaching so they can more effectively direct
under development.
their employees’ professional development activities
and fully and appropriately utilize the resources of
Knowledge Management118 SHA University. Finally, supervisors will be required
SHA’s vision for knowledge management states that to provide career coaching to their employees on an
SHA will, through its business planning, strategic annual basis as part of the development of the
staffing, and succession planning activities, identify employees’ professional development plan.
and catalogue the sets of knowledge that must be
retained for the administration to be successful in SHA University was originally conceived as a frame-
achieving the results specified in the business plan. work for documenting the professional development
SHA will then develop and provide to its offices programs already being provided by various units
guidance and tools for determining the best method within SHA and making the process more efficient.
for documenting existing knowledge. Opportunities Once the workforce planning process got under
are provided for knowledge sets to be exchanged. way, SHA University quickly became a strategic
These opportunities include job shadowing, mentor- link between the organization’s professional devel-
ing, and communities of practice. opment activities and workforce planning.
Knowledge management is thus far the weakest com- SHA University is not a bricks-and-mortar university,
ponent of the SHA workforce planning model. SHA’s but rather a virtual university that organizes all of
ALP class of 2006 is developing the administration’s SHA’s training and professional development activi-
strategic plan and related implementation plan for ties under one umbrella and ties the training func-
knowledge management. In addition, decentralized tion to the strategic business needs as identified
knowledge management projects are occurring in through “workforce planning” activities. The univer-
offices throughout the organization. Some offices are sity is divided into two components: strategic lead-
formalizing their documentation of processes and ership and delivery of the training and professional

development programs. The strategic leadership and filling in the gaps as needed, setting development
component guides the content of the training. priorities, and identifying areas where new activities
Training delivery is primarily decentralized, with or courses are needed.”120
the offices and districts handling their own training
functions. Training opportunities are provided by a State Highway Administration and
wide variety of entities, including SHA subject-
matter experts, outside training providers, colleges the Seven-Step Model
and universities, professional associations, and Using the Seven-Step Workforce Planning Model
trade groups. A small amount of centralized train- as an analytical framework, this section assesses
ing consisting mainly of the leadership develop- SHA’s progress.
ment programs, including ALP and Leadership
Education and Development (LEAD), is offered
Step 1: Definition of SHA’s Strategic Direction
through SHA University.
As in the Seven-Step Model, strategic direction is
the foundation for the workforce planning efforts.
An executive committee composed of the admin-
In the case of SHA, a comprehensive business
istrator, the three deputy administrators, and repre-
planning process drives strategic planning through
sentatives from each of the functional areas of
all levels of the organization. SHA’s workforce
maintenance, operations, and administration oversees
planning efforts are designed to ensure that SHA
SHA University, which is organized around three
has the right people with the right skills in the
colleges: Engineering, Operations, and Administra-
right job to meet its strategic objectives. At the
tion. The relevant deputy administrator heads each
SHA-wide and office levels, managers are
college. Ad hoc members—colleges and universities
expected to identify workforce planning issues
and other strategic partners, including trade groups
and include proposed solutions as part of their
and professional associations—supplement the
plans. In situations where the solutions require
executive committee.
organization-wide or systemic changes, senior
managers are responsible for identifying the problems
The curriculum in each college is geared around
to the leadership team.
the core competencies and skill sets required for
each job classification. People do not “graduate”
from the university, as its purpose is to meet the Step 2: Scan of SHA’s Internal and External
ongoing need for continual skill development. One Environments
of the core documents produced by the university Despite not having staff assigned full-time to the
is the course catalogue and curriculum guide. This workforce planning effort, SHA did a sound job
guide documents the suggested courses for each job of scanning the internal and external environments.
classification included in the college and describes SHA stays current with trends in highway adminis-
the content of the course offerings. The content is tration and technology through involvement in the
developed with input from the executive committee American Association of State Highway Transporta-
for each college. tion Officials (AASHTO), participation in relevant
professional organizations by managers and techni-
The College of Engineering Course Catalogue was cal experts, and ongoing research by managers and
released in January 2007. The catalogues for the Col- technical experts. In addition, SHA undertook a
lege of Operations and the College of Administration more formal assessment of the external environment
are targeted for completion in 2007. Supervisors and as it relates to workforce planning.
employees will use the catalogues in the develop-
ment of employees’ annual professional develop- First, SHA had Steve Lockwood, a nationally rec-
ment plans. The plans will be monitored at the ognized expert in highway transportation, give a
office level. presentation to its senior managers on the future
of the highway transportation system over the next
As summarized by the coordinator for SHA University, 10 to 20 years. The presentation focused on changes
“SHA University is really about putting organization, in construction technology, materials, labor market,
guidance, and structure around what already exists public expectations, and construction funding.
This presentation provided a foundation for the Step 5: Identification of Gaps and
senior managers to identify and discuss trends that Development of Gap-Closing Strategies
will impact how SHA will do business over the For selected positions, SHA has projected the gap
next 10 to 20 years. between supply and demand. This has mostly been
done on an ad hoc basis. At the office level, senior
Second, each office was asked to prepare a work- managers and their planning teams have identified
force planning briefing for the administrator and the workforce gaps and, where possible, developed
Senior Leadership Team. To prepare for the briefing, strategies that can be implemented at that level.
the senior manager in each office led his or her staff However, the lack of a comprehensive process for
in an internal and external environmental scanning documenting and assessing critical skills has ham-
exercise in which the office was expected to project pered SHA’s efforts to identify and close gaps.
possible changes in the type of work it will be
required to do, how it will get done, and who will Gap-closing strategies were developed at the organi-
perform the work. The briefings provided an excel- zation and office levels. Through a series of senior
lent opportunity for the Senior Leadership Team to management team meetings, SHA was able to
identify common challenges across the organization, identify strategies for addressing organization-wide
identify opportunities for immediate action, and challenges. In addition, each office through its
develop longer-term strategies for addressing work- annual business plan was expected to identify
force planning challenges. strategies for addressing its most critical workforce
planning challenges. Although this process was not
comprehensive, it did create an immediate response
Step 3: Model of the Current Workforce
to pressing workforce issues and allowed each
SHA, like many public sector organizations, lacked
office to set its own workforce planning priorities.
the comprehensive data sets needed to model the
workforce. SHA was able to produce a complete list
of employees, their job titles, and assigned locations. Step 6: Implementation of Gap-Closing Strategies
However, the financial, human resource, and training Numerous gap-closing strategies have been identi-
management data systems did not collect the types fied by the senior leadership team. Where possible
of data needed on individual employee skill sets or and appropriate, SHA quickly implemented a num-
readiness for advancement. Basic workforce indica- ber of strategies during the planning process. The
tors were not available, and most of the workforce longer-term implementation plan is in progress,
planning analysis had to be conducted using ad hoc but the individual component parts, such as SHA
reports and special data runs. The organization did University, succession planning, and business plan-
not have a comprehensive list of on-site consultants, ning, are all moving forward without waiting for
which made modeling the current workforce difficult. formalization of the workforce planning initiatives.
SHA had a very good handle on the projected num-
ber and distribution of retirements.
Step 7: Evaluation of Effectiveness and
Revision of Strategies
Step 4: Assessment of Future Workforce Needs Evaluation will continue to remain a major chal-
and Projection of Future Workforce Supply lenge as long as SHA lacks an integrated IT system
The administration is in the process of developing from which performance metrics can be collected
models to compute and project staffing needs. This and reported in a timely manner. Informal evalua-
will be one of the more challenging activities in the tion of strategies will take place during the business
workforce planning initiative. SHA has identified planning process. Since each office is required to
competencies for some succession plan positions address its most critical workforce challenges through
and is in the process of identifying them for all suc- its business plan, the annual assessment and update
cession plan positions. The organization has done process will provide an informal mechanism to
a thorough job of identifying leadership competen- evaluate the effectiveness of the strategies. The
cies, but has not yet done a thorough assessment of business planning process also provides a mecha-
the prevalence of those competencies in the current nism for updating strategies.
and likely future leadership pool.

Workforce Planning Successes led to the identification of many crosscutting prob-

lems and solutions and gave the managers the
SHA has accomplished a great deal in a relatively
opportunity to recommend solutions to the highest
short amount of time given the absence of resources
level of leadership.
to devote to the project. Some key successes at SHA
are discussed below.
SHA has a very good handle on the projected num-
ber and distribution of retirements, and has done a
SHA has fully embraced the concept of business
good job identifying in a qualitative manner the types
planning to achieve outcomes and the need to link
of skills that will be needed in the future. The admin-
workforce planning efforts to the business plan. The
istration is in the process of developing models to
administration and all of its offices have developed
compute and project staffing needs. SHA has identi-
measurable, outcomes-oriented strategic plans. Senior
fied competencies for some succession plan positions
managers are expected to identify workforce planning
and is in the process of identifying them for all suc-
issues in their strategic plans, as well as to identify
cession plan positions. The organization has done a
any special workforce implications of their plans.
thorough job of identifying leadership competencies,
but has not yet done a thorough assessment of the
The importance of workforce planning is widely recog-
prevalence of those competencies in the current and
nized among SHA’s senior managers and many of their
likely future leadership pool.
direct reports, who have developed an appreciation
for the importance of workforce planning and an
Where possible and appropriate, SHA implemented
awareness of how they can take charge of their work-
a number of strategies immediately. The longer-term
force challenges. Managers are taking steps to address
implementation plan is in progress, but the individual
their office’s most important workforce priorities.
component parts, such as SHA University, succes-
sion planning, and business planning, are all mov-
Outside of the formal administration-wide succes-
ing forward without waiting for formalization of
sion planning and knowledge management efforts,
the workforce planning initiatives. Evaluation will
managers across the organization have begun to
continue to remain a major challenge as long as
accept ownership of workforce planning. Senior
SHA lacks an integrated IT system from which per-
managers have begun their own informal and formal
formance metrics can be collected and reported
efforts to retain knowledge and prepare successors.
in a timely manner.
Although SHA’s workforce planning program is in its
early stages, the organization has developed a sound Success Factors
workforce planning program that includes a plan for SHA has made significant strides in its workforce
full implementation with assigned responsibilities. planning efforts. Interviews with key players in the
process identified the following success factors.
SHA’s external scan, led by a highway industry
expert, provided the foundation for a deep discus- The administrator and the three deputy administra-
sion of expected trends by SHA’s managers, who tors demonstrated strategic leadership regarding
where able to incorporate a broader world view workforce planning. By demonstrating leadership
into their workforce planning efforts. Several leaders and commitment at the top to the workforce plan-
at SHA cited this as a best practice for grounding ning process, SHA was able to achieve significant
leaders in the future as they embark on workforce progress despite a lack of additional staff to support
planning activities. the program.
SHA’s office-level workforce planning assessments Each area of workforce planning—business plan-
required managers to step back from the hectic ning, strategic staffing, succession planning, knowl-
day-to-day work environment and think strategically edge management, and the SHA University—had at
about how the office’s operating environment might least one staff-level champion who was willing to
change in the future, how the unit’s services might invest extra time and take a risk to make the program
be provided differently, and what types of skills and work. Many of those interviewed by the author did
abilities would be needed in the future. This process not have particular expertise in workforce planning
prior to embarking on their assignments, but all

demonstrated a willingness to learn from what Lessons Learned
others had done and remain open and flexible to
the potential of workforce planning. Lesson 1: A complete plan is not needed to begin.
Despite being understaffed, managers and employ- Lesson 2: Focused efforts are needed.
ees across SHA participated in various workforce
Lesson 3: Implementation can occur during data
planning activities. Some served on committees for collection and strategy development.
SHA University or succession planning; members
of the Advanced Leadership Program worked to Lesson 4: Consultant resources can help expedite
develop the knowledge management program; and workforce planning and implementation.
almost everyone participated in some manner in
either the business planning process or the work-
force planning assessment. The SMT has addressed
workforce planning issues in each of its biannual positions, processes, or data systems to support the
meetings for the past two years. This has allowed the program. This challenge was somewhat overcome
group to work jointly on establishing administration- by the willingness of employees to take on work-
wide priorities and developing strategies to address force planning in addition to their regular duties and
workforce issues. by the support of management to let them learn and
experiment to develop a strong system.
In 2006, for the first time, SHA included objec-
tives and strategies for addressing key office-level In the beginning of its workforce planning efforts,
workforce planning issues in local office-level SHA did not have a clear model for how workforce
business plans. planning would be implemented and how all the
components related to and supported each other.
The fact that workforce planning brought together Without a clear framework, the team lost time during
a series of seemingly unrelated initiatives into a implementation while they developed an organizing
cohesive model indicates that the organization was framework. However, this is not all bad since it
ready to address workforce planning issues on an allowed the administration to develop a framework
organization-wide basis. that fits the organization.
Challenges Lessons Learned

SHA faced numerous challenges in the development In speaking with those involved most deeply with
and implementation of its workforce planning sys- workforce planning efforts, the following lessons
tem. Three of the most significant challenges are have been learned.
summarized below.
Lesson 1: A complete plan is not needed to begin.
SHA, like so many public sector organizations, Workforce planning was the natural next step in
lacked the types of comprehensive data sets the evolution of the management philosophy at
needed to engage in effective workforce planning. SHA. Disconnected but compatible initiatives that
The financial, human resource, and training man- had developed in different parts of the organization
agement data systems did not collect the types of were able to be more fully developed and integrated
data needed on individual employee skill sets or once the Vision for Performance Excellence laid out
readiness for advancement. Basic workforce indica- a road map for implementation. While a fully devel-
tors were not available. Much needed analysis oped and funded planning effort may have been a
had to be conducted using ad hoc reports and logical first step, it is not at all obvious that the
special data runs. organization would have made such progress in a
relatively short timeframe if the initiative had been
SHA was not funded to conduct workforce planning prescribed from outside of the organization.
and therefore did not have the in-house expertise,

Lesson 2: Focused efforts are needed. • SHA will be more strategic about having the
Workforce planning can be a daunting and over- right number of people in the right place work-
whelming task. By staying focused on strategic ing most effectively in functions that are appro-
workforce issues and not implementing a one-size- priately staffed by government employees.
fits-all solution, SHA was able to realize early
• Employees will be much better prepared to step
success in several areas and allow flexibility to
into leadership and key technical positions
address issues that managers perceived as being
when needed.
most important to their success.
• Employees will be used more effectively and to
the best of their ability, thereby maximizing the
Lesson 3: Implementation can occur during
effectiveness of each employee.
data collection and strategy development.
Workforce planning is never finished. The process • SHA will deliver greater value within the staffing
is continual. Keep in mind that good ideas can be constraints, thereby enhancing the productivity
implemented while the process is still being of each employee.
designed and data are being collected.
Lesson 4: Consultant resources can help expe-

dite workforce planning and implementation.
SHA did use a consultant to assist with the design
of the workforce planning initiative and to conduct
a workforce assessment. Several people interviewed
wished SHA had brought in more consultant
resources earlier in the process to move along various
portions of the implementation plan more quickly
than could be done with in-house resources alone.
Summary
Through the vision of Administrator Neil Pedersen
and the dedicated efforts of numerous managers
and staff members, SHA has been able to develop
a comprehensive and strategic approach to work-
force planning. While, through its own admission,
SHA has not been able to staff its workforce plan-
ning efforts adequately, it has been able to bring a
strategic focus to efforts that were already under way
and add new activities as needed to round out its
workforce planning process. From an outsider’s
perspective, SHA has made a tremendous amount
of progress in the area of workforce planning,
despite the fact that the process is not mandated
or supported by DBM or Maryland’s DOT.
According to Pedersen, much work remains to

be done before workforce planning is fully opera-
tional at SHA. However, when fully implemented
in four years, he expects that it will result in the
following benefits.
Implementing Workforce
Planning: Recommendations
The DOT and SHA case studies show that work- According to one SHA senior manager, while he
force planning can be implemented successfully wished there had been more structure in place
in diverse environments using a variety of methods. before they started the process, he is not sure it
While no one model is perfect, the Seven-Step would have been the best process in the end. By
Model for workforce planning provides a framework working through the issues as an organization, the
for the basic components of successful workforce model and process that emerged were better suited
planning efforts that can be adapted to the needs to their needs than what might have developed if
and culture of any organization. the process had been finalized before workforce
planning efforts were started.
From the lessons learned from the DOT and SHA
case studies and the guidance of the Seven-Step While good workforce planning systems include the
Workforce Planning Model, the following recom- steps outlined in the Seven-Step Model, there is no
mendations are provided for public sector leaders one right way. Regardless of the process used, top
and human resource managers. leadership support, commitment, and strategic vision
are vital to achieve workforce planning success.
Recommendations for Agency
Workforce planning efforts should be targeted to
Leaders and HR Directors areas of strategic importance. This is a circum-
stance where the 20/80 rule applies. By addressing
Recommendation 1: If your organization is not the recruitment, retention, and knowledge manage-
already doing so, now is the time to engage in ment issues that plague the 20 percent of positions
a workforce planning effort that is linked to with the most significant workforce issues, the
your organization’s strategic objectives.
organization’s workforce planning challenges will
Workforce planning is an important element of
achieve significant success. Even in the best of cir-
sound public sector management practice. As seen
cumstances, resources are not unlimited; therefore,
in the two cases presented, organizations can
such targeted efforts will maximize the benefit to
achieve success through a variety of models and
the organization.
processes. However, to remain competitive as
employers, public organizations must engage in
Prior to embarking on a first-time planning effort,
ongoing workforce planning, constantly reviewing
leaders should assess the resources available to
and revising their workforce plans.
support the project. If strong data systems and good
HR support are available, models like the one
It is not necessary to wait until the perfect processes
employed at DOT may be the best. Organizations
or support structures are in place before embarking
lacking strong IT systems and support structures may
on workforce planning. In fact, doing so may pre-
employ a more focused model that can generate
vent an organization from moving forward. As seen
early successes with limited resources. These suc-
in the SHA example, significant progress can be
cesses may make it easier for the agency to justify
made well before all systems are in place.
a larger investment in IT systems or staff. Whatever

Recommendations
1. If your organization is not already doing so, now is the time to engage in a workforce planning effort that is
linked to your organization’s strategic objectives.
2. Conduct internal and external environmental scans to identify workforce trends in a proactive manner.
3. Focus workforce planning efforts in areas where the most benefit will be achieved.
4. Develop appropriate systems to collect and report on key workforce indicators.
5. Be creative in developing strategies to address workforce planning issues.
6. Develop a “doable” implementation plan.
system is used, agencies must choose a framework the organization’s mission; access to third party
that fits their needs and resources. providers; and changes in public expectations.
For organizations to realize significant benefit from Scanning teams should be composed of employees
the workforce planning effort, planning should be who are able to synthesize information and interpret
conducted at both the macro and micro levels— how trends may impact the organization. Ideally, the
business unit, office, division, and organization- team should include people from diverse disciplines,
wide. Such a dual focus creates a process that is backgrounds, work experiences, assignments, ages,
useful to managers throughout the organization years of service, and levels within the organization.
and allows for the development of a wide range of
gap-closing strategies. Both SHA and DOT adopted Background material for the external scan is avail-
this dual focus approach with much success. able from a wide variety of sources including trade
publications, professional associations, government
Workforce planning teams should include members reports from organizations such as the Bureau of Labor
from diverse functional areas, various levels of manage- Statistics and the Bureau of the Census, industry
ment, different geographic locations, and varying years experts, newspapers, and journals.
of service. Diversity is helpful when identifying work-
force planning challenges and creating workable strate- SHA provides an example of a somewhat informal
gies. Both SHA and DOT used cross-functional teams but highly informative scanning process. To begin
in the development of workforce planning strategies. the process, SHA brought in a nationally recog-
nized expert to present to senior management his
assessment of industry trends that he expected to
Recommendation 2: Conduct internal and
impact SHA’s workforce needs. This assessment
external environmental scans to identify work-
was followed by a group discussion of expected
force trends in a proactive manner.
trends. Information synthesized from the assessment
A thoughtful internal and external scanning process
was presented to each office’s workforce planning
is critical to identifying workforce planning issues
team before they met with agency leaders to discuss
before they become problems for the organization.
the results of their workforce planning assessment.
Environmental scans can be formal or informal—
Several leaders at SHA cited this as a best practice
the key is that they target the most significant trends
for grounding leaders in the future as they embark
that can impact the organization’s workforce. The
on workforce planning activities.
scans should address a wide variety of topics such
as industry trends; trends in public sector employ-
ment; the local, regional, and national labor supply; Recommendation 3: Focus workforce planning
changes in technology or work processes; economic efforts in areas where the most benefit will
and community conditions that may impact the be achieved.
attractiveness of the community to potential employ- All organizations are limited in the amount of time and
ees; the availability of alternative means to achieve resources they have available to devote to workforce
planning. By targeting workforce planning efforts Second, organizations should research, adapt, and
to the areas of strategic importance—those mission- implement strategies that have been successful in
critical positions that are instrumental to the orga- other organizations. Agencies who seek to replicate
nization’s success and where the organization is a novel strategy would be well served to speak with
experiencing problems recruiting or retaining employ- someone involved in the implementation to gain a
ees with the needed skills or abilities—organizations sound understanding of the problem they were try-
will achieve the best return on investment. ing to address, as well as the barriers and facilitators
to implementation. This information will be helpful
Where possible and appropriate, organizations should in assessing if the strategy can work in a different
also move to implement workforce planning strategies situation and in identifying methods for avoiding
as soon as possible and not wait until the workforce implementation pitfalls.
planning process is complete. Early implementation
of “quick hits”121 shifts the focus from planning to Third, strategists need to “think outside of the box.”
problem solving and provides momentum to the While this recommendation may sound cliché, it is
workforce planning effort. very appropriate in this context. Uncensored brain-
storming sessions with planning teams can be useful
Recommendation 4: Develop appropriate for producing a variety of novel solutions to work-
systems to collect and report on key workforce force challenges. Once promising strategies are
indicators. identified, they can be assessed for implementation
Access to current, accurate, and consistently avail- feasibility. It may be that new rules or regulations
able data about employees, consultants, work pro- need to be created to allow good solutions to be
cesses, cost, and work volume provides the critical implemented.
data needed to implement workforce planning.
Recommendation 6: Develop a “doable”
Organizations would be well served to invest in inte- implementation plan.
grated human resource data systems that can collect Without a doable implementation plan, the best
and report in a timely manner key workforce indica- workforce planning models become ineffective.
tors. Appendix IV contains a list of recommended As seen in the two cases in this report, sustainability
workforce indicators. Ideally, data systems should track requires institutionalized processes and dedicated
employee skills, competencies, and professional devel- resources. To ensure workforce planning gets the
opment activities in addition to basic HR trend data. regular attention it requires, the gap analysis, com-
petency assessment, strategy development, and
Integrated HR data systems should encompass all evaluation phases of workforce planning should be
of an organization’s human resources, including incorporated into the organization’s management
permanent employees, contractual employees, model and business practices. Institutionalization
temporary employees, consultants, and partners. will provide a framework for managers to work the
This broad view of an organization’s human plan and be held accountable for the implementa-
resources is very helpful for identifying potential tion of the plan as appropriate.
workforce gaps and developing sound solutions.
Organizations must also provide leadership, staff,
Recommendation 5: Be creative in develop- and technical support for the workforce planning
ing strategies to address workforce planning effort. As indicated in Recommendation 1, leader-
issues. ship support is essential for maintaining a focus on
Developing effective gap-closing strategies often workforce planning. Staff support such as regular
requires organizations to do the same activities they data analysis, research support, and assistance in
currently do in a different manner or to do different drafting new rules and regulations is also vital for
things. There are three key practices for developing keeping the workforce planning effort moving for-
effective workforce planning strategies. First, organi- ward. Even in organizations that do not have a for-
zations should explore and use the existing work- mal workforce planning office, employees can be
force flexibilities at their disposable. Often managers formally assigned to support the workforce plan-
have much more flexibility than they utilize. ning effort as part of their normal duties. Technical

support for the workforce planning efforts includes

developing, maintaining, and providing access to
key HR databases.
Conclusion
Workforce planning is within the reach of every
public sector organization. Obviously as with any
initiative, appropriate resources in terms of funds,
staffing, and support systems will make the process
easier. However, once the gaps between workforce
supply and demand are identified, there is no substi-
tute for strategic and creative thinking on the part of
an organization’s leaders in developing strategies to
close the gaps.
Acknowledgments
The author would like to thank Mark Abramson and research and writing of Planning for the Future:
John Kamensky of the IBM Center for The Business A Workforce Needs Assessment for Maryland
of Government for their support and guidance dur- State Highway Administration.
ing this project.
The author would like to thank Ivan Armfield, pro-
The author would like to thank the following people gram manager for workforce planning at the United
at SHA: States Department of Transportation, for taking time
to review and comment upon the chapter on DOT’s
Neil Pedersen, SHA administrator, for inviting experience with workforce planning.
the author to serve as a consultant to SHA’s
workforce planning efforts and for taking time The author would also like to thank Jennifer Durant
from his busy schedule to share his thoughts for her expert assistance in editing this document.
about the implementation of workforce planning
at SHA
Normetha Goodrum, deputy administrator;
Barbara Gibbs, director of the Office of
Administration; and Bill Barnard and Benjamin
Gossard of the Organizational Development
Division, who all gave generously of their time
to share their insights about the SHA’s workforce
planning process
Peter Stephanos, the former director, Office
of Materials and Technology, who generously
shared his experiences with leading the OMT
through a complete reorganization of personnel,
duties, and facilities
The leaders and managers of the Maryland
State Highway Administration with whom the
author had the privilege to work and learn
from while conducting the SHA workforce
planning needs assessment
A special thanks goes to Cathy Rice, manager
of the Performance Excellence Unit, who
worked closely with the author during the

Appendix I: The Relationship

Among the HCAAF Systems
Figure A.1 illustrates the five components of the competencies.123 This system also ensures knowledge
Human Capital Assessment Accountability Framework, is captured and shared. The results-oriented perfor-
or HCAAF, systems. The planning and goal-setting mance culture system implements and manages
system component of the model (strategic alignment) effective performance management systems and
provides direction for agencies’ human capital efforts. awards programs.124 The talent management system
It promotes the alignment of human capital strategies is responsible for correcting competency gaps, espe-
with agency mission, goals, objectives, and strategies. cially in mission-critical positions.125
Workforce planning takes place in this system. This
system is usually led by the agency’s CHCO.122 The accountability system is the evaluation compo-
nent of the model. This is where human capital
There are three implementation systems: leadership strategies are evaluated and where opportunities for
and knowledge management, results-oriented perfor- improvement are identified.126 The evaluation results
mance culture, and talent management. The leader- feed back into the strategic alignment system, where
ship and knowledge management system identifies suggested strategy modifications are added to the
and develops strategies for closing gaps in leadership plan as warranted.
Figure A.1: Relationship Among the HCAAF Systems
Planning and Evaluating

Implementation
Goal Setting Results
Leadership and
Knowledge
Management
Strategic Results-Oriented
Performance Culture Accountability
Alignment
Talent
Management
Provide Implement Human Provide Outcome

Direction Capital Strategies Information
Source: The Human Capital Assessment Accountability Framework (HCAAF) Systems, Standards, and Metrics.
http://www.opm.gov/hcaaf_resource_center/assets/hcaaf_ssm.pdf.
Appendix II: The Federal

Workforce Planning Model
The workforce planning model of the Office of the workforce supply, demand, and projects gaps;
Personnel Management, shown in Figure A.2, is (3) developing the action plan; (4) implementing
very similar to the Seven-Step Workforce Planning the action plan; and (5) monitoring, evaluating, and
Model. The OPM model is cyclical and includes five revising the action plan.
steps: (1) setting the strategic direction; (2) analyzing
Figure A.2: Federal Workforce Planning Model
Set Strategic Direction

• rganize and mobilize strategic partners
O
• Set vision/mission/values/objectives
• Review organizational structure
• Conduct Business Process Reengineering
• Set measures for organizational performance
Supply, Demand, and Discrepancies

• Analyze permanent workforce
– Demographics (age, grade, tenure)
Monitor, Evaluate, and Revise – Retirement trends
• Assess effectiveness – Attrition
• Adjust plan as needed • Describe non-permanent workforce
• Conduct skills assessment and analysis
• Address new workforce and
organizational issues • Identify supervisors and managers
– Occupation
– Grade
– Geographic location
– Supervisor-to-staff ratio
Implement Action Plan

• Communicate the plan
Develop Action Plan
• Conduct recruitment and training
• Implement retention strategies • D esign a Workforce Restructuring Plan
• Restructure where needed • Develop ways to address skills gaps
• Conduct organizational assessments • Set specific goals
Source: Adapted from the Office of Personnel Management, Federal Workforce Planning Model, http://www.opm.gov/compconf/
postconf01/position/wthomas.pdf.

Setting the strategic direction looks at where the

organization is going and what type of workforce
will be needed to get there. In this step, the organi-
zation also examines the effectiveness of the organi-
zational structure and assesses business process
efficiency. Gap analysis looks at the projected differ-
ence between available supply of skills and compe-
tencies and the projected demand. Particular
attention is paid to mission-critical functions at this
step. The action plan can include the plethora of
human capital flexibilities available to federal man-
agers, as well as new strategies designed to meet
agency-specific needs. Restructuring and outsourc-
ing are possible strategies to examine in this step.
The action plan is implemented in step four, fol-
lowed by an assessment of the impact of the action
plan in step five. The results of the evaluation are
used to inform step one in the next planning cycle.
Appendix III: U.S. Department

of Transportation’s Succession
Planning Model
The U.S. Department of Transportation’s succession sharing, (7) executive and supervisory support,
planning philosophy emphasizes the leadership (8) selection and placement, and (9) continual
pipeline in which the department is developing reassessment.127 Internal and external candidates
leaders at every level, and each leader is responsible can enter the pipeline at any level as long as they
for identifying and preparing possible successors. are qualified. The model, as shown in Figure A.3,
While each administration has latitude to set its emphasizes level-appropriate development and
own priorities and establish its own programs, all seeks to ensure that as leaders advance in the
administrations must include the following common hierarchy, their leadership skills and competencies
elements: (1) organized sponsorship, (2) cultural also advance.
values identification and assessment, (3) identifica-
tion of the talent pool, (4) competency assessments, Leadership competencies will be an important
(5) developmental experiences, (6) knowledge factor in the promotion and assignment of leaders.
Figure A.3: DOT’s Succession Planning Systems Model
Elements of Succession
Departing Executive/ Planning System
Senior Executive
Knowledge Sharer
Apply appropriately at level(s)
of progression designated as
critical by the organization.
Senior Manager
Eventually apply to the entire
pipeline.
• Organized sponsorship
2nd Level
Supervisor/Manager • Cultural values identification
and assessment
• Competency assessments
External Team Leader/ Internal • Developmental experiences
Talent Pool Supervisor Talent Pool
• Leadership support and
accountability
• Placement/selection
Basic
• Continual reassessment
Characteristics of the Pipeline

• Each progressive level requires additional competencies.
• Qualified external or internal talent may enter the pipeline at any level.
Source: Reproduced from DOT Workforce Plan 2003–2008, FY 2005 Update, 36.

Participation in formal succession planning and

development programs is not a guarantee of place-
ment. Candidates still must compete for open posi-
tions. DOT’s short-term goal for succession planning
is to implement systematic succession planning to
prevent leadership gaps. The long-term goal is to
achieve continuity of leadership.128 Success is mea-
sured by three factors: the existence of a diversified,
qualified pool of management talent; the effective-
ness of leaders developed through the process; and
the integration of succession planning in the depart-
ment’s workforce planning process.129
Appendix IV: Suggested

Strategic Workforce Planning
Performance Measures
Presented below are examples of indicators that can Recruitment Measures

be used in workforce planning efforts. They can be
These indicators can be used to assess whether or
used to identify trends or workforce issues, bench-
not the agency is hiring the right people—those who
mark the organization’s efforts as part of the envi-
are qualified to do the job and who are also a good
ronmental scan, and measure the effectiveness of
fit for the organization.
strategies as part of the evaluation process.
• Average number of days to fill an open position*
General Workforce Measures
• Average number of days to fill mission-critical
These measures examine demographic patterns in positions
the workforce and staffing trends.
• Percent of new hires terminated within one year
• Workforce statistics (overall and in mission- of hire*
critical or targeted positions) such as years of • Percent of new hires who left voluntarily within
service, grade, classification, geographic distri- one year of hire*
bution, and workforce demographics
• Percent of new hires in mission-critical positions
• Percent of employees eligible to retire in the who left voluntarily
next five years*
• Vacancy rate
• Percent of employees in mission-critical func-
tions eligible to retire in the next five years • Vacancy rate in mission-critical positions
• Number of managerial positions in the succes- • Percent of new hires who meet or exceed super-
sion plan* visor’s expectations
• Number of technical positions in the succes- • Percent of new hires in mission-critical positions
sion plan* who meet or exceed supervisor’s expectations
• Percent of managerial succession plan positions

with a viable talent pool Employee Retention Measures
These indicators can be used to measure the success
• Percent of mission-critical functions performed
of retention efforts, assess the work environment,
by on-site consultants
and assess employee morale.
• Ratio of supplemental staff to permanent staff
• Percent of new hires who left voluntarily within
• Ratio of supplemental staff hourly cost to com-
one year of hire*
parable permanent staff hourly cost including
fringe benefits and overhead • Voluntary turnover, exempt*
• Percent of offices or divisions with a multi-year • Involuntary turnover, non-exempt*
strategic workforce plan

• Voluntary turnover, exempt • Percent of new employees who receive a perfor-

mance appraisal within the first six months*
• Involuntary turnover, exempt
• Percent of non-exempt employees who receive
• Voluntary turnover, non-exempt*
an annual evaluation*
• Involuntary turnover, non-exempt*
• Percent of managers who receive an annual
• Benefits per dollar of salary, non-exempt* evaluation
• Discrimination complaints per 1,000 employees* • Percent of managers with a current perfor-
mance-based assessment plan
• Grievances per 1,000 employees*
• Percent of work plans that incorporate measures
• Appeals per 1,000 employees*
from the strategic plan
• Ratio of professional staff salaries to comparable
• Percent of employees who receive formal quar-
on-site consultant salaries
terly performance feedback
• Employee survey results regarding morale,
• Percent of managers and supervisors whose pay
intention to stay, job satisfaction
is linked to organizational performance.
Training and Development Measures *These measures are based, in part, on measures reported in the
Government Performance Projects’ Managing People scorecard.
These measures can be used to determine how well
the organization is preparing its employees for
advancement within the organization and to assess
how training dollars are being invested.
• Percent of classified employees promoted*

• Training expenditures per employee*
• Training expenditures per employee in leader-
ship track
• Training expenditures per employee in supervi-
sory track
• Training expenditures per employee in mission-
critical positions, exempt track
• Training expenditures per employee in techni-
cal, non-exempt positions
• Percent of employees with a current profes-
sional development plan
• Percent of employees who are on track with
their professional development plan
• Percent of succession plan positions fully sup-
ported by professional development resources
Managing Employee Performance

Management Measures
These measures assess the accountability framework
in the organization and the degree to which perfor-
mance and rewards are linked.
Endnotes
1. Bureau of Labor Statistics, http://www.bls.gov/iag/ Maximizing Agility Through Nonstandard Work

government.htm, accessed 03/18/07. (Includes civilian Arrangements,” 2005.
employees only.) 26. Thompson and Mastracci, 2005, 12.
2. Bureau of Labor Statistics, http://www.bls.gov/iag/ 27. Ibid.
government.htm, accessed 03/18/07. 28. County of Los Angeles, Strategic Workforce
3. Abbey and Boyd, 2002, 3. Planning Guide, March 2001, 6.
4. Abbey and Boyd, 2002, 7. 29. GAO-03-2, 13–14.
5. Abbey and Boyd, 2002, 5. 30. Ibid.
6. Abbey and Boyd, 2002, 1. 31. GAO-06-324, 12.
7. GAO/T-GGd-0077, 3. 32. Government Performance Project, 2005. http://
8. Carroll and Moss, 2002, 4. results.gpponline.org, accessed 11/21/06.
9. Fullerton as cited in Naff and Kellough, 2001, 7. 33. Ibid.
10. Eisner, 2005, 4. 34. IPMA, 2002, 13.
11. IPMA, 2002, 6. 35. Data are available from http://results.gpponline.
12. Pub. Law No.108-136, November 24, 2003, as org/States.aspx.
cited in GAO-06-1125T. 36. Data regarding DOT’s implementation of work-
13. Bureau of Labor Statistics, http://www.bls.gov/iag/ force planning was collected through a review of pub-
government.htm, accessed 3/17/07. licly available documents.
14. Fraunenheim, 2006. 37. Executive Branch Management Scorecard, March
2004. http://www.whitehouse.gov/results/agenda/
15. GAO-01-263, 71.
scorecard.html.
16. GAO-01-241, 20.
38. Executive Branch Management Scorecard,
17. GAO-01-241, 21.
March 2007. http://www.whitehouse.gov/results/agenda/
18. PMA-FY 2002, 11–16. FY07Q2_scorecard.pdf.
19. PMA-FY 2002, 15. 39. OPM, Strategic Human Resources Management,
20. Based upon data extracted from the 2005 1999, 2.
Government Performance Project summaries of states’ 40. OPM, Strategic Human Resources Management,
Managing People scorecards. http://results.gpponline.org, 1999, 2.
accessed 11/21/06. 41. OPM, Strategic Human Resources Management,
21. Building Successful Organizations: A Guide to 1999, i.
Strategic Workforce Planning, May 2000, NAPA, Ralph 42. GAO-01-241, 21.
Bledsoe, Panel Chair, 2. 43. Emphasis added.
44. President’s Management Agenda, FY 2002, 14.
22. IPMA Workforce Planning Resource Guide,
45. President’s Management Agenda, FY 2002, 14–15.
2002, vi.
46. Pub. Law 107-296, November 25, 2002.
23. Bledsoe, 2000.
47. The Human Capital Assessment and
24. IPMA-HR, 2006, 11. (HR Transformation) Accountability Framework (HCAAF) Systems, Standards,
25. The definition of supplemental employees was and Metrics. http://www.opm.gov/hcaaf_resource_center/
based on definitions created by James R. Thompson assets/hcaaf_ssm.pdf.
and Sharon H. Mastracci in “The Blended Workforce:

48. Department of Transportation, Workforce Plan 84. Executive Branch Management Scorecard, June
2003–2008 FY 2006 Update, March 2006, ii. 2004. http://www.whitehouse.gov/results/agenda/
49. Department of Transportation, Workforce Plan scorecard.html.
2003–2008 FY 2006 Update, March 2006, Chapters 1, 4. 85. GAO-05-574T, 9.
50. Ibid. 86. Ibid.
51. Department of Transportation, Workforce Plan 87. Internal survey conducted by the Schaefer Center
2003–2008 FY 2006 Update, March 2006, Introduction, 1. for Public Policy.
52. Department of Transportation, Workforce Plan 88. OMT, 2002.
2003–2008 FY 2006 Update, March 2006, Introduction, 89. http://www.governing.com/gpp/2005/md.htm.
5–6. 90. OLA Audit, 2005, 5.
53. Ibid., 7. 91. OLA Audit, 2005, 5–6.
54. Ibid., Chapter 3, 1–10. 92. OLA Audit, 2005, 9.
55. Mission-critical occupations are defined by OPM 93. Maryland Department of Budget and
as: “Occupations agencies consider core to carrying out Management, 2005.
their missions. Such occupations usually reflect the pri- 94. Ibid., 3.
mary mission of the organization without which mission- 95. Ibid.
critical work cannot be completed.” (DOT Workforce Plan 96. Pedersen, 2005.
2003–2008, FY 2006 update, Chapter 2, 1). 97. Cotten, 2006.
56. Ibid., Chapter 2, 1–2. 98. Office of Legislative Auditors, Department of
57. Ibid. Legislative Services, Maryland General Assembly, State
58. Ibid., Chapter 2, 7–11. Workforce Planning Performance Audit, January 2005, 31.
59. Ibid., Chapter 2, 13. 99. Pedersen, 2005.
60. Ibid., Chapter 2, 14. 100. Ibid.
61. Ibid., Appendix H, 11. 101. Pedersen, Vision for Performance Excellence,
62. Ibid. 2005.
63. Ibid., Chapter 5. 102. Pedersen, 2005.
64. Ibid., Chapter 5, 3. 103. Ibid.
65. DOT Systematic Succession Planning in the 104. The consultant is the author of this report, P. Ann
Department of Transportation, March 2003, 6. Cotten.
66. DOT Workforce Plan 2003–2008, FY 2006 105. Performance Excellence Vision, 13–14.
update, Chapter 5, 8. 106. Ibid., 14.
67. Ibid., Chapter 5, 11. 107. Pedersen, 2005.
68. Ibid. 108. Pedersen.
69. Ibid. 109. Stephanos, OMT Reorganization Summary,
70. Ibid., Chapter 4, 1. unpublished report.
71. Ibid. 110. Ibid., 3.
72. Ibid., Chapter 4, 3. 111. Ibid., 10.
73. Ibid., Chapter 4, 11. 112. Performance Excellence Vision, 14.
74. Ibid., Chapter 4, 1–4. 113. Gossard interview, 2005.
75. Ibid., Chapter 4, 4–6. 114. Ibid.
76. Ibid., Chapter 5, 5–7. 115. Ibid.
77. FY 2005 Performance and Accountability Report, 116. Ibid.
DOT, 118. 117. Gossard e-mail.
78. DOT Workforce Plan 2003–2008, FY 2006 118. Performance Excellence Vision, 13–14.
update, Chapter 4, 9. 119. bid., 15.
79. Ibid., Chapter 4, 2. 120. Barnard interview.
80. Ibid., Chapter 4, 6. 121. This is the term used by SHA to describe those
81. Ibid., Chapter 4, 7. strategies that, aside from leadership approval, no
82. Ibid., Chapter 6, 1–2. other approval or action was needed to proceed with
83. Ibid., Chapter 2, 1,10. implementation.
122. Section I, Introduction to the HCAAF Practitioner’s
Guide, 3.
123. Ibid.
124. Section I, Introduction to the HCAAF Practitioner’s
Guide, 4.
125. Ibid.
126. Ibid.
127. DOT Workforce Plan 2003–2008, FY 2005
update, 39.
128. bid., 38.
129. Ibid., 38–39.

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Abou t t h e a u t ho r
Patricia (Ann) Cotten is the Director of the Schaefer Center for Public
Policy at the University of Baltimore, an applied research unit within
the School of Public Affairs, and an affiliated faculty member in the
School of Public Affairs.
Dr. Cotten has more than 19 years of professional experience at the

federal, state, and local levels in the areas of strategic planning, perfor-
mance measurement, program evaluation, survey research, and public
sector management. Some of her recent public projects include the
development of a workforce plan assessment for the Maryland State
Highway Administration and the development of workload standards
for the Maryland Department of Human Resources’ Family Investment
Administration’s case managers. Cotten also served as a co-principal
investigator on a study of legislative efforts to combat obesity that culmi-
nated in a nationally cited Obesity Report Card© and is a contributing
author to the recently released book entitled Obesity, Business, and Public Policy. She has conducted
strategic management training in the Schaefer Center’s Managing for Results Training program since 1997
and has facilitated the development of strategic plans and performance measurement plans for numerous
state agencies and nonprofit organizations. Through the Schaefer Center, Cotten directs the Harry and
Jeanette Weinberg Fellows Program, a leadership development program for executive directors of nonprofit
organizations that serve the financial disadvantaged in the Baltimore area.
Cotten is the former president of the Maryland Chapter of the American Society for Public Administration.
She teaches strategic management for government and nonprofit organizations and survey research in the
University of Baltimore’s Doctorate of Public Administration program and is an experienced trainer of mid-
and upper-level managers.
Cotten received her doctorate in public administration from the University of Baltimore and is a Certified
Public Accountant.

K e y co n t a c t I n fo r m a t i o n
To contact the author:

Ann Cotten
Director
1304 Saint Paul Street
Baltimore, MD 21202
(410) 837-6188
e-mail: [email protected]
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Performance-Oriented Payband City (2001)
Systems (2007) Janet Vinzant Denhardt and Robert B. The Baltimore CitiStat Program:
James R. Thompson Denhardt Performance and Accountability
(2003)
Managing for Better Performance: Understanding Innovation: What
Lenneal J. Henderson
Enhancing Federal Performance Inspires It? What Makes It
Management Practices (2007) Successful? (2001) Strategies for Using State Information:
Howard Risher and Charles H. Fay Jonathan Walters Measuring and Improving Program
Performance (2003)
Seven Steps of Effective Workforce Government Management of
Shelley H. Metzenbaum
Planning (2007) Information Mega-Technology:
Ann Cotten Lessons from the Internal Revenue Linking Performance and Budgeting:
Service’s Tax Systems Modernization Opportunities in the Federal Budget
(2002) Process (2004, 2nd ed.)
Barry Bozeman Philip G. Joyce
Innovation Advancing High End Computing: How Federal Programs Use Outcome
Managing Workfare: The Case of the Linking to National Goals (2003) Information: Opportunities for
Work Experience Program in the New Juan D. Rogers and Barry Bozeman Federal Managers (2004, 2nd ed.)
York City Parks Department (1999) The Challenge of Innovating in Harry P. Hatry, Elaine Morley, Shelli B.
Steven Cohen Government (2006, 2nd ed.) Rossman, and Joseph S. Wholey
Sandford Borins Performance Management for
New Tools for Improving
Government Regulation: An A Model for Increasing Innovation Career Executives: A “Start Where
Assessment of Emissions Trading Adoption: Lessons Learned from the You Are, Use What You Have” Guide
and Other Market-Based Regulatory IRS e-file Program (2006) (2004, 2nd ed.)
Tools (1999) Stephen H. Holden Chris Wye
Gary C. Bryner
Staying the Course: The Use of
Religious Organizations, Anti-Poverty Performance Measurement in State
Relief, and Charitable Choice: A Governments (2004)
Managing for Julia Melkers and Katherine
Feasibility Study of Faith-Based
Welfare Reform in Mississippi (1999) Performance and Willoughby
John P. Bartkowski and Helen A. Regis Results Moving from Outputs to Outcomes:
Business Improvement Districts and Practical Advice from Governments
Using Evaluation to Support Around the World (2006)
Innovative Service Delivery (1999)
Performance Management: A Guide
Jerry Mitchell Burt Perrin
for Federal Executives (2001)
An Assessment of Brownfield Kathryn Newcomer and Mary Ann
Redevelopment Policies: The Scheirer
Michigan Experience (1999)
Richard C. Hula
Using the Balanced Scorecard: Managing Across Boundaries: A Public Deliberation: A Manager’s
Lessons Learned from the U.S. Postal Case Study of Dr. Helene Gayle and Guide to Citizen Engagement (2006)
Service and the Defense Finance the AIDS Epidemic (2002) Carolyn J. Lukensmeyer and Lars
and Accounting Service (2006) Norma M. Riccucci Hasselblad Torres
Nicholas J. Mathys and Kenneth R.
Thompson Managing “Big Science”: A Case A Manager’s Guide to Choosing
Study of the Human Genome Project and Using Collaborative Networks
Performance Leadership: 11 Better (2002) (2006)
Practices That Can Ratchet Up W. Henry Lambright H. Brinton Milward and Keith G.
Performance (2006, 2nd ed.) Provan
Robert D. Behn Managing the New Multipurpose,
Multidiscipline University Research The E-Government Collaboration
Performance Accountability: Centers: Institutional Innovation in Challenge: Lessons from Five Case
The Five Building Blocks and Six the Academic Community (2003) Studies (2006)
Essential Practices (2006) Barry Bozeman and P. Craig Boardman Jane Fedorowicz, Janis L. Gogan,
Shelley H. Metzenbaum and Christine B. Williams
Assessing Partnerships: New Forms
Implementing OMB’s Program of Collaboration (2003) From Forest Fires to Hurricane
Assessment Rating Tool (PART): Robert Klitgaard and Gregory F. Katrina: Case Studies of Incident
Meeting the Challenges of Integrating Treverton Command Systems (2007)
Budget and Performance (2006) Donald P. Moynihan
John B. Gilmour Leveraging Networks: A Guide for
Public Managers Working across
The Philadelphia SchoolStat Model Organizations (2003)
(2007) Robert Agranoff presidential
Christopher Patusky, Leigh Botwinik,
and Mary Shelley Extraordinary Results on National transitions
Goals: Networks and Partnerships in
What All Mayors Would Like to the Bureau of Primary Health Care’s The President’s Management
Know About Baltimore’s CitiStat 100%/0 Campaign (2003) Council: An Important Management
Performance Strategy (2007) John Scanlon Innovation (2000)
Robert D. Behn Margaret L. Yao
Public-Private Strategic Partnerships:
Engaging Citizens in Measuring and The U.S. Postal Service-Federal Government Reorganization:
Reporting Community Conditions: Express Alliance (2003) Strategies and Tools to Get It Done
A Manager’s Guide (2007) Oded Shenkar (2004)
Alfred T. Ho Hannah Sistare
The Challenge of Coordinating “Big
Science” (2003) Performance Management for
W. Henry Lambright Political Executives: A “Start Where
networks, You Are, Use What You Have” Guide
Communities of Practice: A New (2004)
Collaboration, Tool for Government Managers (2003) Chris Wye
and partnerships William M. Snyder and Xavier de
Souza Briggs Becoming an Effective Political
The Challenge of Managing Across Executive: 7 Lessons from
Collaboration and Performance Experienced Appointees (2005,
Boundaries: The Case of the
Management in Network Settings: 2nd ed.)
Office of the Secretary in the U.S.
Lessons from Three Watershed Judith E. Michaels
Department of Health and Human
Governance Efforts (2004)
Services (2000) Getting to Know You: Rules of
Mark T. Imperial
Beryl A. Radin Engagement for Political Appointees
The Quest to Become “One”: An and Career Executives (2005)
Leveraging Networks to Meet
Approach to Internal Collaboration Joseph A. Ferrara and Lynn C. Ross
National Goals: FEMA and the Safe
(2005)
Construction Networks (2002) Six Trends Transforming Government
Russ Linden
William L. Waugh, Jr. (2006)
Cooperation Between Social Security Mark A. Abramson, Jonathan D.
Applying 21st-Century Government
and Tax Agencies in Europe (2005) Breul, and John M. Kamensky
to the Challenge of Homeland
Bernhard Zaglmayer, Paul
Security (2002) Reflections on 21st Century
Schoukens, and Danny Pieters
Elaine C. Kamarck Government Management (2007)
Leveraging Collaborative Networks Donald F. Kettl and Steven Kelman
in Infrequent Emergency Situations
(2005)
Donald P. Moynihan
To download or order a copy of a report, visit the IBM Center for The Business of Government website at: www.businessofgovernment.org 71
The Management of Regulation Revitalization of the Veterans Health SUPPLY CHAIN

Development: Out of the Shadows Administration (2000)
(2007) Gary J. Young
MANAGEMENT
Cornelius M. Kerwin Digitally Integrating the Government
Transforming Government: Dan
Goldin and the Remaking of NASA Supply Chain: E-Procurement,
(2001) E-Finance, and E-Logistics (2003)
W. Henry Lambright Jacques S. Gansler, William
Social Services Lucyshyn, and Kimberly M. Ross
Implementing State Contracts for The Power of Frontline Workers
in Transforming Government: Enhancing Security Throughout
Social Services: An Assessment of the Supply Chain (2004)
the Kansas Experience (2000) The Upstate New York Veterans
Healthcare Network (2003) David J. Closs and Edmund F.
Jocelyn M. Johnston and Barbara S. McGarrell
Romzek Timothy J. Hoff
Making Public Sector Mergers Investing in Supply Chain Security:
Delivery of Benefits in an Emergency: Collateral Benefits (2005, 2nd ed.)
Lessons from Hurricane Katrina (2007) Work: Lessons Learned (2003)
Peter Frumkin James B. Rice, Jr., and Philip W. Spayd
Thomas H. Stanton
Efficiency Counts: Developing the RFID: The Right Frequency for
Capacity to Manage Costs at Air Government (2005)
Force Materiel Command (2003) David C. Wyld
Strategy and Michael Barzelay and Fred Thompson Benchmarking Procurement
Transformation Practices in Higher Education
The Transformation of the
Government Accountability Office: (2007)
The Importance of Leadership: The
Using Human Capital to Drive Richard R. Young, Kusumal
Role of School Principals (1999)
Change (2005) Ruamsook, and Susan B. Purdum
Paul Teske and Mark Schneider
Jonathan Walters and Charles
Leadership for Change: Case Studies Thompson
in American Local Government (1999)
Robert B. Denhardt and Janet Transforming the Intelligence
Vinzant Denhardt Community: Improving the
Collection and Management of
Managing Decentralized Information (2005)
Departments: The Case of the U.S. Elaine C. Kamarck
Department of Health and Human
Services (1999) Executive Response to Changing
Beryl A. Radin Fortune: Sean O’Keefe as NASA
Administrator (2005)
Corporate Strategic Planning in W. Henry Lambright
Government: Lessons from the
United States Air Force (2000) Ramping Up Large, Non-Routine
Colin Campbell Projects: Lessons for Federal
Managers from the Successful 2000
Transforming Government: The Census (2005)
Renewal and Revitalization of the Nancy A. Potok and William G.
Federal Emergency Management Barron, Jr.
Agency (2000)
R. Steven Daniels and Carolyn L. The Next Government of the United
Clark-Daniels States: Challenges for Performance
in the 21st Century (2005)
Transforming Government: Creating Donald F. Kettl
the New Defense Procurement
System (2000) Reforming the Federal Aviation
Kimberly A. Harokopus Administration: Lessons from
Canada and the United Kingdom
Trans-Atlantic Experiences in Health (2006)
Reform: The United Kingdom’s Clinton V. Oster, Jr.
National Health Service and the
United States Veterans Health Improving Service Delivery in
Administration (2000) Government with Lean Six Sigma
Marilyn A. DeLuca (2007)
John Maleyeff
Transforming Government: The
BOOKS
Collaboration: Using Networks and Managing for Results 2002

Partnerships (Rowman & Littlefield Publishers,
(Rowman & Littlefield Publishers, Inc., 2001)
Inc., 2004) Mark A. Abramson and John M.
John M. Kamensky and Thomas J. Kamensky, editors
Burlin, editors
Managing for Results 2005
Competition, Choice, and Incentives (Rowman & Littlefield Publishers,
in Government Programs Inc., 2004)
(Rowman & Littlefield Publishers, John M. Kamensky and Albert
Inc., 2006) Morales, editors
John M. Kamensky and Albert
Morales, editors Memos to the President:
Management Advice from the
E-Government 2001 Nation’s Top CEOs
(Rowman & Littlefield Publishers, (John Wiley & Sons, Inc., 2000)
Inc., 2001) James J. Schiro, editor
Mark A. Abramson and Grady E.
Means, editors Memos to the President:
Management Advice from the
E-Government 2003 Nation’s Top Public Administrators
(Rowman & Littlefield Publishers, (Rowman & Littlefield Publishers,
Inc., 2002) Inc., 2001)
Mark A. Abramson and Therese L. Mark A. Abramson, editor
Morin, editors
New Ways of Doing Business
Human Capital 2002 (Rowman & Littlefield Publishers,
Inc., 2002) Mark A. Abramson and Ann M.
Mark A. Abramson and Nicole Kieffaber, editors
Willenz Gardner, editors
The Procurement Revolution
Human Capital 2004 (Rowman & Littlefield Publishers,
Inc., 2004) Mark A. Abramson and Roland S.
Jonathan D. Breul and Nicole Harris III, editors
Willenz Gardner, editors
Transforming Government Supply
Innovation Chain Management
(Rowman & Littlefield Publishers, (Rowman & Littlefield Publishers,
Inc., 2002) Inc., 2003)
Mark A. Abramson and Ian Littman, Jacques S. Gansler and Robert E.
editors Luby, Jr., editors
Integrating Performance and Transforming Organizations
Budgets: The Budget Office of (Rowman & Littlefield Publishers,
Tomorrow Inc., 2001)
(Rowman & Littlefield Publishers, Mark A. Abramson and Paul R.
Inc., 2006) Lawrence, editors
Jonathan D. Breul and Carl
Moravitz, editors
Leaders
(Rowman & Littlefield Publishers,
Inc., 2002)
Mark A. Abramson and Kevin M.
Bacon, editors
Learning the Ropes: Insights for
Political Appointees
(Rowman & Littlefield Publishers, Note: Rowman & Littlefield books
Inc., 2005) are available at bookstores, online
Mark A. Abramson and Paul R. booksellers, and from the publisher
Lawrence, editors (www.rowmanlittlefield.com or 800-
462-6420).
73
About the IBM Center for The Business of Government
Through research stipends and events, the IBM Center for
The Business of Government stimulates research and facilitates
discussion of new approaches to improving the effectiveness of
government at the federal, state, local, and international levels.
The Center is one of the ways that IBM seeks to advance

knowledge on how to improve public sector effectiveness.
The IBM Center focuses on the future of the operation and
management of the public sector.
About IBM Global Business Services

With consultants and professional staff in more than 160 countries
globally, IBM Global Business Services is the world’s largest
consulting services organization. IBM Global Business Services
provides clients with business process and industry expertise,
a deep understanding of technology solutions that address
specific industry issues, and the ability to design, build and
run those solutions in a way that delivers bottom-line business
value. For more information visit www.ibm.com.
For additional information, contact:

Jonathan D. Breul
Executive Director
1301 K Street, NW
Fourth Floor, West Tower
Washington, DC 20005
(202) 515-4504, fax: (202) 515-4375
e-mail: [email protected]
website: www.businessofgovernment.org

Seven Steps On Effective Workforce Planning

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What is the seven-step workforce planning model?

What is the seven-step workforce planning model?

What are some examples of workforce planning successes at the U.S. Department of Transportation?

What are some examples of workforce planning successes at the U.S. Department of Transportation?

providing cutting-edge

government leaders Seven Steps of Effective

Seven Steps of Effective

On behalf of the IBM Center for The Business of Government, we are

Successful private and public sector organizations must have robust

This report introduces the Seven-Step Workforce Planning Model,

 IBM Center for The Business of Government

Using the Seven-Step Workforce Planning Model as an analytical

Albert Morales Solly Thomas

 IBM Center for The Business of Government

Four key lessons can be learned form the SHA case:

Lesson 1: A complete plan is not needed to begin.

Recommendation 1: If your organization is not

 IBM Center for The Business of Government

Why Workforce Planning Is Important

Changes in the Workplace

10 IBM Center for The Business of Government

Acronyms and Abbreviations

AASHTO American Association of State Highway MARAD Maritime Administration

ARME Assistant Resident Maintenance Engineer NPR National Performance Review

CIVFORS Civilian Forecasting System OLA Maryland Office of Legislative Audit

DBM Maryland’s Department of Budget and OPM Office of Personnel Management

FHWA Federal Highway Administration PMA President’s Management Agenda

HCAAF  uman Capital Assessment and

IPMA-HR International Public Management SMT Senior Management Team

GAO designated strategic human capital manage-

President George W. Bush identified strategic human

12 IBM Center for The Business of Government

The Seven-Step Workforce

Workforce planning is more than the 3R’s of recruit-

Strategic workforce planning is a system-

14 IBM Center for The Business of Government

16 IBM Center for The Business of Government

Figure 1: Projecting Workforce Supply

Start with Compute

Contract Contract Involuntary Contract

Gap analysis can be as simple as assessing the num-

18 IBM Center for The Business of Government

As organizations take advantage of improvements in do not consider it a viable employment option

20 IBM Center for The Business of Government

Step 6: Implement Gap-Closing implementing, and supporting workforce planning

22 IBM Center for The Business of Government

Figure 2: Workforce Planning in State Governments

example, the Maryland State Highway Administration

Workforce Planning at the

24 IBM Center for The Business of Government

Goals for the President’s Management Agenda—Human Capital Initiatives

Expected Long-Term Results

Source: President’s Management Agenda, FY 2002, p. 14.

Source: Standards for Success: Strategic Management of Human Capital. http://www.whitehouse.gov/results/agenda/

26 IBM Center for The Business of Government

Implementing and Evaluating Succession Planning at

DOT has a comprehensive talent management strat-

28 IBM Center for The Business of Government

DOT Checklist for Success

IBM Center for The Business of Government

IBM Center for The Business of Government

IBM Center for The Business of Government

AASHTO American Association of State Highway MARAD Maritime Administration

DBM Maryland’s Department of Budget and OPM Office of Personnel Management

HCAAF uman Capital Assessment and

IPMA-HR International Public Management SMT Senior Management Team

Strategic Staffing—One Office’s Experience