1.3: Human Capital and Succession

CMS will complete and implement the Human Capital Management plan and the CMS Succession process and plan.

Other Information:

Human Capital Management Plan - CMS faces a series of unprecedented internal business and external environmental challenges, which have major implications for the workforce and accomplishing the Agency’s mission. These challenges include rapid and significant changes in health care delivery and related technology, CMS’ emerging strategic role as an active health care market presence, and CMS’ aging workforce and the increased competition for skilled workers. CMS’ FY 2005 - 2008 Human Capital Management Plan (HCMP) establishes a framework for developing an organizational structure that is citizen-centered, results-oriented and market-based. Our approach is strategic, dynamic, and aligned with the agency’s current and future business needs. The HCM process will: (1) integrate recruitment policies and systems to allow us to identify and quickly hire highly-competent employees; (2) retain high-performing employees through innovative incentive structures; (3) reward CMS employees by linking performance awards to specific program performance goals; and (4) develop and refine organizational structures that are efficient and effective. By FY 2008, 45 percent of CMS’ managers and 28 percent of CMS’ current workforce will be eligible to retire. This will create skill gaps in virtually all occupations within CMS. CMS must use various techniques to effectively manage human capital. For example, implementing employee development programs that cover all levels of the CMS workforce, significantly improving the agency’s hiring practices, fully exercising recruitment and retention flexibilities and e-Gov solutions, and using competitive sourcing as a mechanism for closing skill gaps are some of the comprehensive strategies that are already under way and will continue beyond FY 2009. Accordingly, we will support the HCMP by: • Implementing the Extreme Hiring Makeover Project (EHM) throughout CMS. EHM provides a new approach to effective recruitment and hiring. It also helps us get the right people with the right skills in the right jobs at the right time. To do this, CMS will use the following strategies: o have strategic conversations with hiring managers to clearly define the competencies needed for each vacancy posting; o use competency assessments to recruit employees; o re-design our vacancy announcements to attract the best talent; o use a “Manager’s Toolkit” to train managers on hiring; and o hold our managers and human resource professionals accountable for being stewards of CMS’ valuable resources. • Increasing the use of recruitment and retention flexibilities currently available, such as direct hire authority, recruitment and retention bonuses, superior qualifications appointment authority, and relocation bonuses; • Using the Federal Career Intern, Emerging Leaders, Presidential Management Fellows Program, and the Senior Executive Service Career Development Programs to supplement the pool of quality talent who can move into leadership positions as they become available; • Increasing workforce diversity, especially in mission-critical occupations, by using a variety of special appointment authorities and recruitment options, holding managers accountable for achieving results, enhancing ongoing relationships with minority organizations, and developing, implementing, and evaluating strategies for diversifying the workforce; • Integrating our competitive sourcing activities into CMS’ overall human capital management strategies (i.e. moving staff from support-type positions to mission-critical functions consistent with our competitive sourcing program); • Eliminating competency gaps in our most critical occupations by identifying proficiency gaps and proficiency levels for each Mission Critical Occupation (MCO), implementing core competency models for all MCOs, and developing and implementing plans for closing the gaps in all MCOs by the end of FY 2007; • Implementing new Performance Management Appraisal Program (PMAP) that provides meaningful measurement of individual performance and provides information for making informed decisions about awards and recognition, training, reassignment/re-deployment potential, functional assignments, and retention; • Providing enhanced employee development programs and training options linked to individual employee development plans; and • Growing leaders by delivering or identifying leadership development programs that enable employees and managers to demonstrate CMS’ five core leadership competencies of Managing Change, Leading People, Managing Resources, Producing Results, and Building Partnerships and Coalitions. CMS Succession Plan - In the fall, 2005, CMS initiated an agency-wide succession planning system to help us identify both the talent pool in our employees and key roles that are potentially at risk due to attrition. In FY 2005, CMS conducted an inventory of its management and senior technical ranks. That study revealed the potential for a significant increase in attrition in key leadership positions over the next five to 10 years. The primary cause for the projected increase is the approaching retirement eligibility of 45 percent of CMS’ incumbent staff in grades GS-14 and above. To accomplish our mission, CMS needs leadership with extensive program knowledge, high-level technical/professional expertise, and effective management and leadership skills. Among its first benefits, the Succession Management System will provide the long-range overview necessary to help management determine the most effective way to plan for the succession in the next decade. CMS is moving forward to implement this process. • By the end of FY 2006, the CMS Succession Plan will encompass more than 1100 leadership roles and incumbent staff ranging from the SES management ranks through senior technical experts in every major occupational category. • In FY 2007 CMS will create a flexible and automated Succession Management System, which will be the driver for our recruitment and retention, employee development, management development, and diversity recruitment plans.

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