Executive Summary

The Chief Human Capital Officers Act of 2002 (Act), enacted as part of the Homeland Security Act of 2002 on November 25, 2002,[1] required the heads of 24 Executive departments and agencies to appoint or designate Chief Human Capital Officers (CHCOs). The Act also established a Chief Human Capital Officers Council (Council) "to advise and coordinate the activities of members' agencies on such matters as the modernization of human resources systems, improved quality of human resources information, and legislation affecting human resources operations and organizations."

The 25-member Council is composed of the Director of the Office of Personnel Management (OPM), who serves as chairman; the Deputy Director for Management of the Office of Management and Budget (OMB), who acts as vice chairman; the CHCOs of the 15 Executive departments; and the CHCOs of eight additional agencies designated by the OPM Director.

The Act's effective date, 180 days after enactment, was May 24, 2003.

On May 24, 2003, OPM Director Kay Coles James, Chairman of the CHCO Council, announced the CHCOs designated by the heads of the 24 Executive departments and agencies specified in the Act. Chairman James also announced the members of the CHCO Council. By statute, the Council is composed of the CHCOs of Executive departments and any other members designated by the OPM Director. Employing this authority, the Chairman designated the CHCOs of several large Executive agencies, as well as a representative group of smaller Executive agencies, as members of the Council.

Chairman James convened the Council for its inaugural meeting on Wednesday, June 11, 2003, in the Indian Treaty Room at the White House. At the meeting, the Council adopted its charter; OPM staff briefed members on the new Governmentwide direct hire and category rating authorities included in the Homeland Security Act of 2002; executive vice president for human resources of The Home Depot, Mr. Kevin Donovan, offered a private sector perspective on human capital management; and congressional staff read a letter from Senator George V. Voinovich, the CHCO Act's author.

The Council held its second meeting on July 23, 2003, at the Office of Personnel Management.

A strategic planning retreat originally scheduled for September 2003 was postponed due to Hurricane Isabel. The retreat took place on November 20-21, 2003, at OPM's Federal Executive Institute in Charlottesville, Virginia, and will be described in the Council's Annual Report to the Congress for Fiscal Year 2004.

Chairman James established an Executive Committee composed of nine CHCOs to help steer the Council. In 2004, the Committee is scheduled to meet on a monthly basis. In addition, the Chairman designated the following five initial subcommittees to examine key human resources issues: (1) The Hiring Process; (2) Leadership Development and Succession Planning; (3) Performance Management; (4) Employee Conduct and Poor Performers; and (5) Emergency Preparedness. Each subcommittee is chaired by a member of the Executive Committee.

At the Council's inaugural meeting, Chairman James announced the establishment of a CHCO Academy, a forum for Council members to discuss Federal human resources issues, learn from one another in an informal setting, and share best practices in the strategic management of human capital. The Academy meets monthly at OPM.

On November 18, 2003, Chairman James appointed Mr. Michael D. Dovilla the Council's first Executive Director to direct the daily operations of the Council, serve as an advisor to the Chairman and her principal liaison to Council members, and act as a catalyst for assuring rapid, effective, and comprehensive follow-through on Council initiatives.

To enhance communication among members and with external stakeholders, in the near future OPM will launch a Web site containing key information about the Council. Once active, the site will be accessible on the Internet at www.chcoc.opm.gov.

The Council held an offsite with representatives of Federal employee labor organizations to celebrate the first anniversary of the body's establishment. Additional information on this meeting will be provided in the Council's Annual Report to the Congress for Fiscal Year 2004.

Background

The Chief Human Capital Officers Act of 2002 (Act), enacted as part of the Homeland Security Act of 2002 on November 25, 2002,[2] required the heads of 24 Executive departments and agencies to appoint or designate Chief Human Capital Officers (CHCOs). In addition, the Act established a Chief Human Capital Officers Council (Council) "to advise and coordinate the activities of members' agencies on such matters as the modernization of human resources systems, improved quality of human resources information, and legislation affecting human resources operations and organizations."[3]

The 25-member Council is composed of the Director of the Office of Personnel Management (OPM), who serves as chairman; the Deputy Director for Management of the Office of Management and Budget (OMB), who acts as vice chairman; the CHCOs of the 15 Executive departments; and the CHCOs of eight additional agencies designated by the OPM Director.

The Act's effective date, 180 days after enactment, was May 24, 2003.

Council Activities

Designation of Chief Human Capital Officers and Establishment of the Council

On May 24, 2003, OPM Director Kay Coles James, Chairman of the CHCO Council, announced the CHCOs designated by the heads of the 24 Executive departments and agencies specified in the Act, as follows:

The Act cited section 901(b) of title 31, United States Code, a provision of the Chief Financial Officers Act of 1990, as the basis for which agencies would have statutory CHCOs. Several agencies not enumerated in the Act embraced the spirit of the legislation, however, and designated CHCOs as well. These agencies include the Central Intelligence Agency (CIA), Federal Labor Relations Authority, and Peace Corps.

On the Act's effective date, Chairman James announced the members of the CHCO Council. By statute, the Council is composed of the CHCOs of Executive departments and any other members designated by the OPM Director. Employing this authority, the Chairman designated the CHCOs of several large Executive agencies, as well as a representative group of smaller Executive agencies, as members of the Council. Not all statutory CHCOs are members of the Council, while some non-statutory CHCOs are members. The Chairman sought to achieve a representative sample of small agencies on the Council. Accordingly, she selected for membership three of the six smallest agencies' statutory CHCOs. In addition, to highlight the necessity of excellent strategic human capital management in the Intelligence Community and the Federal Government's myriad small agencies, the Chairman designated as Council members the CIA CHCO and a representative of the Small Agency Council, the voluntary management association of approximately 80 sub-Cabinet, independent Federal agencies, each of which generally has fewer than 6,000 employees.

In summary, the Federal Government's CHCOs can be categorized as follows:

• CHCOs of the 15 Cabinet departments specifically enumerated in the Act, all of whom are on the Council;
• CHCOs of nine Executive agencies also listed in the statute, six of whom are on the Council;[4] and
• CHCOs of other Federal agencies that voluntarily have established these positions, two of whom are on the Council.[5]

Appendix 1 of this report contains a diagram that displays these categories.

Meetings of the Council

June 2003

Chairman James convened the Council for its inaugural meeting on Wednesday, June 11, 2003, in the Indian Treaty Room of the Eisenhower Executive Office Building at the White House. The meeting provided new Council members a chance to introduce themselves and offer thoughts on actions that could be taken to meet current strategic human resources challenges. In calling the inaugural meeting to order, Chairman James described the Council as an additional body through which to drive the implementation of Federal personnel flexibilities within agencies. Citing the initiative and excellence of Federal managers and employees on and after the terrorist attacks of September 11, 2001, the Chairman stated that OPM will continue its commitment of supporting agency requests for assistance in seeking new flexibilities or further implementing existing authorities.

At the meeting, the Council adopted its charter; OPM staff briefed members on the new Government-wide direct hire and category rating authorities included in the Homeland Security Act of 2002; executive vice president for human resources of The Home Depot, Mr. Kevin Donovan, offered a private sector perspective on human capital management; and congressional staff read a congratulatory letter from Senator George V. Voinovich (R-Ohio), the CHCO Act's author.

July 2003

The Council held its second meeting on July 23, 2003, at the Office of Personnel Management. At the meeting, the Chairman announced the Council's Executive Committee members; OPM staff briefed members on emergency communications, personnel background investigations (including the issues of bogus degrees and questionable résumés) and the Human Capital Performance Fund; and the Council discussed an initial strategic planning retreat as well as the appointment of a Technical Assistant for each CHCO to strengthen lines of communication between the Council, OPM, and agencies.

September 2003

A strategic planning retreat originally scheduled for September 2003 was postponed due to Hurricane Isabel. The retreat took place on November 20-21, 2003, at OPM's Federal Executive Institute in Charlottesville, Virginia, and will be described in the Council's Annual Report to the Congress for Fiscal Year 2004.

Establishment of Executive Committee and Initial Subcommittees

In July 2003, Chairman James established an Executive Committee composed of nine CHCOs to help steer the Council. In 2004, the Committee is scheduled to meet on a monthly basis. In addition, the Chairman designated the following five initial subcommittees to examine key human resources issues: (1) The Hiring Process; (2) Leadership Development and Succession Planning; (3) Performance Management; (4) Employee Conduct and Poor Performers; and (5) Emergency Preparedness. Each subcommittee is chaired by one member of the Executive Committee. The groups, which receive support from OPM and member agency staff, are meeting regularly and have been charged with driving their respective issues and making recommendations to the Council, via the Executive Committee, for regulatory or legislative changes.

Establishment of Chief Human Capital Officers Academy

At the Council's inaugural meeting, Chairman James announced the establishment of a CHCO Academy, a forum for Council members to discuss Federal human resource issues, learn from one another in an informal setting, and share best practices in the strategic management of human capital. The topics of the first three monthly sessions of the Academy, which was launched in February 2004, are (1) current flexibilities under title 5, United States Code, (2) human resources competitive sourcing, and (3) continuing the dialogue on Federal pay reform. The Chairman has invited Council members to recommend issues for discussion at future Academy sessions.

Appointment of Executive Director

On November 18, 2003, Chairman James appointed the Council's first Executive Director to direct the daily operations of the Council, serve as an advisor to the Chairman and her principal liaison to Council members, and act as a catalyst for assuring rapid, effective, and comprehensive follow-through on Council initiatives. For this position, the Chairman selected Mr. Michael D. Dovilla, a former professional staff member for Senator George V. Voinovich, chairman of the Senate Governmental Affairs Committee's Subcommittee on Oversight of Government Management, the Federal Workforce and the District of Columbia. During his time on Senator Voinovich's staff, Mr. Dovilla, a former Presidential Management Intern, assisted in drafting and guiding to passage by the Congress a package of Federal civil service reforms, including the provisions of the Chief Human Capital Officers Act of 2002.

Outreach to External Stakeholders

To enhance communication among members and with external stakeholders, OPM will launch in the near future a Web site containing key information about the Council. Once active, the site will be accessible on the Internet at www.chcoc.opm.gov.

In addition, the Council held a major offsite to celebrate the first anniversary of the body's establishment. This meeting included representatives of Federal employee labor organizations, as required at one meeting per year by the Act. Additional information on this meeting will be provided in the Council's Annual Report to the Congress for Fiscal Year 2004.

Conclusion

From the first day of its existence as one of the Federal Government's interagency management councils, the Chief Human Capital Officers Council began adding value to the public policy dialogue over the future of America's civil service. As the Council reaches its first anniversary, it already has assumed a prominent place among the interagency management councils that are helping to drive the initiatives of the President's Management Agenda.

The members of the CHCO Council take seriously their important, new responsibilities. With continued attention to the President's charge to achieve results, the American civil service will only grow stronger as it continues to provide the Nation with the critical services our citizens expect.