Personnel and Readiness
APEX Department of Defense
Senior Executive Service
Marilee FitzgeraldOffice of the Deputy Under Secretary of Defense
for Civilian Personnel Policy
March 10, 2009
2
Topics
• SES Transformation Initiative – What Does it Mean for Your Career
• SES Performance Management – Your issues and Your Challenges
• Civilian Expeditionary Workforce Initiative - Your role
• Questions and Answers
3
Goal 1- World Class Enterprise Leaders
Developing 21st Century Senior Executive Service LeadersDeveloping 21st Century Senior Executive Service Leaders
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• PURPOSE: Leverage the civilian senior executive talent to meet mission requirements through the deliberate management and development of the career lifecycle of the senior executives
• DESIRED OUTCOMES:
─ Develop, grow, and sustain executives who:
─ Offer enterprise perspectives through diverse experiences
─ Are prepared for a broader range of leadership in the “joint environment”
─ Competently exert influence on and support the most substantive national security matters
─ Work across the DoD and the Federal Government as a global, national security team
─ Are an interchangeable, non war fighting G/FO equivalent executive asset
Senior Executive Service Transformation Initiative
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FRAMEWORK FOR LIFECYCLE MANAGEMENT OF EXECUTIVE TALENT
Ben
chm
arking
Core Competencies and Values
Mission and Organizational
Goals
WorkforcePlanning
Sourcing, Recruiting, Selecting
Performance Management
Compensation
Leadership Development
Separation & Sustainment
Succession Management
Job Profiles Corporate Values Leadership Competencies Functional CompetenciesCore Competencies
Competency ManagementOnboarding Curriculum Development and Design Certification Programs Developmental Assignments Feedback
Learning and Development
IT Systems and Strategy HR Policies Process Governance Investment Strategy
Supporting Infrastructure
Mission and Organizational Goals
Met
rics
an
d E
valu
atio
n
Workforce PlanningDemand and Supply Forecasts
Capability AssessmentsGap Analyses
Requirements Alignment
Leadership DevelopmentCompetency Based Learning
ActivitiesImmersive & Experiential Learning
Job RotationsMentoringCoaching
Separation and SustainmentOutplacement
Knowledge Management Capture
Re-employ AnnuitantsExit Interviews
Succession ManagementTalent Needs IdentificationTalent Pool Identification
Assessment & AssignmentFeedback & Development
Sourcing, Recruiting, Selecting
Branding AssessmentsRecruitingSelectionDiversity
Performance ManagementCompetency
Assessments Goal-Setting
Self-Assessment360 Assessment
Development Planning
CompensationCompensation
PlanningPay for Performance
Pay PoolsPay Bands
Ben
chm
arking
Culture
Career Lifecycle Management
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Drivers for DoD 21st Century LeadersDrivers for DoD 21st Century Leaders
Adaptive and proven leadership for
transformational times; creativity and
innovation
Varied experiences to understand interplay of
operations and policy; diversity in person and
skills
Enterprise-spanning perspectives that aligns
local organizations to the DoD mission
Understanding and leadership in a multi-service, interagency, multi-national, and global environment-The Joint Environment
Speed, agility, and precision of action for
effective warfighting capabilities
Asymmetric threats
Expanded mission
requirements
Increased reliance on
national security
partners
New definition of “joint”
Unpredictable
challenges
New TimesNew Times New SkillsNew Skills
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20th Century Model vs. – 21st Century Best Practices20th Century Model vs. – 21st Century Best Practices
SESSES GFO and Top Execs in Private SectorGFO and Top Execs in Private Sector
Largely local resources
Executive driven development
Executive initiated utilization
“Fend for yourself” system
Rare development opportunities
Typically selected for functional skills
Positions posited to be equal
Rotation Pattern Varies - Some to frequent
Largely Corporate resources
Institution and top management driven development
Top management initiated utilization
Executives develop others
Many systematic development opportunities
Selected for executive management skills
Stratify executives and identify top cadre for strongest institutional management
Frequent position rotation
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Concept
Policy
• “Executive” implies: • “Enterprise-spanning”
perspective • National Security and
Joint competency • Vision and strategic
thinking • Diverse experiences,
mobile • Leading people and
organizations • Global and cultural
astuteness • Fostering collaborative
relationships • Lifelong learning
• The “enterprise” has an equity stake in SES—just as it does in General/Flag Officer selections.
• Component Heads will issue “precepts” or instructions to SES
selection boards to ensure the needs of the “enterprise” are weighed as heavily as the need for a leader at a particular location.
• Executive resources are “enterprise” assets that are allocated to the
Components to provide executive leadership.
• New and enduring executive competencies will guide lifecycle preparation and decisions
• Executive jobs differ in scope, influence and impact.
• Executive skills continue to
grow and develop through lifelong training, education, and experience.
• SES jobs are “tiered” into those suitable for entry-level SES to those demanding a seasoned, experienced, accomplished leader with joint experience and a balance of operational and policy experience.
• SES, in consultation with supervisors and mentors, will be guided
through a structured series of developmental and educational experiences, including reassignments to more challenging positions.
• Position mobility will become the norm rather than the exception.
Requiring “term limit” concept (4 e.g., 4 yrs) for Enterprise Positions; optional but encouraged for Tier 1-3 positions
Key Concepts for New Policy
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Concept
Policy
• The skills wielded by executives in the highest scope, influence, and impact jobs will affect organizational outcomes more significantly and directly.
• Established SES “Enterprise Positions” • Component Heads make SES assignments into the • Deputy Secretary of Defense will be consulted on
assignments to DoD “Enterprise” Positions. • Competency is Enterprise Perspective, National Security
Perspective and Joint Perspective a prerequisite for Enterprise Positions by 2012 (desirable factor until then).
• Executive management is
a critical function that itself must be carefully managed.
• Component Heads will establish SES Management Offices analogous to (or included within) their General Officer/Flag Management organizations.
• An “enterprise” level organization will be established to support the Deputy Secretary – Defense Executive Advisory Board (DEAB).
• Annual talent Boards (similar to G/FO boards) for talent assessment, succession planning, and selection.
Key Concepts for New Policy
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Where Are We Today?
• Issued a DoD Directive Policy in October 2007 Installed central SES management offices Established the Defense Executive Advisory Board reporting to Deputy
Secretary of Defense on SES matters Implemented:
– a 3-tier structure for compensation and development – new executive competencies as selection factors– Implemented mobility agreements for new SES
Adopted an enterprise-wide talent management process and automated tool for assignment and succession planning – spiral implementation with full implementation Jan 1, 2010
Adopted practice of slating candidates for Tier 2 and Tier 3 positions Implemented a Fully Certified pay-for performance appraisal system
Developing 21st Century Senior Executive Service LeadersDeveloping 21st Century Senior Executive Service Leaders
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Developing A Bench of 21st Century Leaders - Connecting the “dots”
Ensured a deliberate process of joint civilian leader development
Developed and implemented a DoD –wide competency-based framework for civilian leader development
Conducted leadership competency gap analysis of current leaders and succession pipeline; identified corrective action
Restructured existing DoD-wide development programs (DLAMP & ELDP) to align with new 21st century framework – Transformed to Joint Leader Development
Aligned Component leader development programs to DoD framework; identifying gaps in curriculum and means to fill - ongoing
Ensured linkage to 21st Century SES Leader and other related initiatives Establish Functional Community Managers for oversight of leader
development within the community
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Position and Compensation ManagementDoD Tier Structure
Tier 1599 Positions
Tier 2
Tier 3197 Positions
434 Positions
$143,500
$177,000(Ex Level II)
$170,00Midpoint
$162,900(Ex Level III)
Key Business Rules
Initial Appointment: Up to 10%, but not to exceed EX-III, unless approved by the Authorizing Official.
To a Higher Tier: Up to 20%, but within Tier limit
To a Lower Tier: 0%. If pay exceeds Tier limit, future pay increases limited to 50% of increase unless grandfathered (career broadening or management request)
Same Tier: Up to 5%, but generally no pay increase warranted
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Performance Payout Philosophy
$ $ $$ $ $
$ $ $ Re
spo
nsi
bili
ty/C
omp
lexi
ty
543
Tier 3
Tier 2
Tier 1
Meaningful Distinctions in Performance
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Challenge Pay Compression – On a Path to Pay Disincentive
2007
$154,600
$150,645
$143,471
2008
$158,500
$157,409
$149,913
2009
$162,500
$160,860
$153,200
2 Challenges
Accessing the full salary range for entry level SES in Tier 1 positions. Salary range for a Tier position is $143,500 to $162,900.
Pay disincentive for Tier 1 positions ( NSPS to SES)
Pay System
SES Tier 1 Cap (Exec III)
NSPS Cap (YA/YC-3 + DC)
GS Cap (GS-15/10 + DC)
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Goal 3 – Results-Oriented Performance Culture
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SES Pay for PerformanceWhat are the Pay for Performance Objectives?
Objectives:
• Bases pay and progression on individual and organizational performance
• Drives a results-driven, accountable performance culture
• Cascades organizational strategic plans and priorities to executives and subordinate performance plans – “line of sight”
• Assists in development of a highly productive executive workforce Provides for an equitable and transparent method for appraising and compensating covered executives
• Allows for the executive involvement in the evaluation process
• Enables communication between rating official and executive
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System Features
General:
• OPM and OMB “certify” Agency Performance Management Systems every 2 years• DoD’s Performance Management System is fully certified for 2008-2010 - DoD
received one of the highest scores • DoD System covers 1,387 executives (career and non career)
DoD System Features: • Standard system for all of DoD • Standard rating cycle: October 1 to September 30 of each year• 7 Performance Factors – 3 mandatory (in bold):
• Leadership/Supervision• Contribution to Mission Accomplishment• Resource Management• Communication• Cooperation/Teamwork• Customer Care• Technical Competence/ Problem Solving
• 5 Rating Levels: • 5 - Exceptional Results • 4 – Exceeds Expected Results • 3 – Achieves Results• 2 – Minimally Satisfactory• 1 - Unsatisfactory
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System Features
DoD System Features – continued
• Executives who meet expectations are eligible for a Basic Pay Increase and Bonus
• Annual President’s Pay Adjustment is “At Risk” based upon performance
• A formula calculates a Total Performance Payout - split between Basic Pay and Bonus by recommendation of Performance Review Board and approval of Authorizing Official
A DoD Standard Pay Pool funding factor is established each year
Common Tier system used for position and compensation management Pay pool value is different for each Tier Recognizes that a high level performance in some positions has more impact than
comparable performance in others
• Basic Pay cannot exceed Executive Level II - $177,000
• Bonus pool cannot exceed 10% of aggregate of executive salaries (5 U.S.C. 5384.b(3)(a) ; Individual bonus payments must be a minimum of 5% and maximum of 20% (5 U.S.C. 5384.b(2)
• SES performance based on results of annual DoD organizational assessment
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0.0% 0.0% 2; 0.2%2; 0.2%
183; 15%163; 14%15; 19%5; 23%
710; 57%658; 58%35; 45%
16; 73%
351; 28%322; 28%28; 36%
1; 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 LA ONLY 2008 NA ONLY 2008 CAREER ONLY 2008 ALL
5
4
3
2
2; 0.2%3; 0.2%4; 0.3%2; 0.2%
183; 15%161; 13%155; 13%162; 14%
710; 57%656; 54%645; 54%598; 52%
351; 28%397; 33%369; 31%351; 31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 (SES RATED = 1,113) 2006 (SES RATED = 1,173) 2007 (SES RATED = 1,219) 2008 (SES RATED = 1,246)
5
4
3
2
Distribution of SES Ratings (2005-2008)DoD-Wide
Rating Levels
1,246 SES RATED IN 20081,246 SES RATED IN 2008
2008 SES RATEDCA 1,145NA 78LA 22NDR 1
2008 SES RATEDCA 1,145NA 78LA 22NDR 1
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SES Performance Ratings(2005-2008)By Component
This analysis includes career, non-career and limited appointment SES leaders.* SES leaders not rated are those who were on board for less than 90 days before the end of the appraisal period.
0%
10%
20%
30%
40%
50%
60%
70%
80%
ARMY 0.0% 0.0% 69.9% 25.8% 0.0% 8.9% 71.3% 17.1% 0.0% 4.8% 78.2% 17.1% 0.0% 17.8% 68.2% 14.0%
NAVY 0.3% 22.1% 49.7% 27.6% 0.0% 12.1% 55.0% 29.4% 0.0% 14.2% 51.3% 34.5% 0.0% 10.1% 52.5% 37.4%
AIR FORCE 0.0% 21.8% 54.6% 23.6% 0.9% 15.3% 58.4% 25.4% 0.0% 12.8% 60.9% 26.3% 0.0% 5.1% 69.4% 25.5%
4TH ESTATE 0.0% 17.6% 44.3% 37.4% 0.4% 16.2% 42.4% 40.7% 0.6% 17.0% 40.8% 41.6% 0.4% 19.0% 50.1% 30.5%
2 3 4 5 2 3 4 5 2 3 4 5 2 3 4 5
FY2005 RATINGS
1,173 Rated/19 Not Rated *
FY2006 RATINGS
1,173 Rated/19 Not Rated
FY2007 RATINGS
1,219 Rated/55 Not Rated
FY2008 RATINGS
1,246 Rated/57 Not Rated
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2005 2006 2007
Non-DoD DoD Non-DoD DoD Non-DoD DoD
Average Salary $151,910 $147,751 $155,454 $152, 001 $159,482 $155, 941
Average Salary Adjustment $5,752 $4,086 $4,686 $4,029 $5,667 $5,185
Average Pay % Increase 3.92% 2.8% 3.10% 2.7% 3.68% 3.4%
Average Bonus $12,849 $14,788 $13,100 $11,988 $13,756 $13,939
• Federal respondents (61%) are satisfied with their pay – OPM SES 2008 Survey• DoD respondents (45%) are satisfied with their pay – OPM SES 2008 Survey • Pay satisfaction is on downward trend: Government results are lower than results on a comparable question in the 2006 Federal Human Capital Survey (73% Federal/ 55%DoD)
Executive Perceptions about Compensation – DoD vs. Non DoD
Comparisons of Compensation - DoD vs. Non-DoD
2008
Non-DoD*
* Non DoD data not available until June 2009 – published by OPM
DoD
$162,144
$5,888
3.61%
$12,786
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SES Pay for Performance
Challenge: How do we drive a new meaning around rating levels?
Way Ahead:
Build a culture where a Level 3 performance rating - “Achieved Results,” is:
1) Considered a high-bar standard;
2) The “presumptive” rating for those who deliver expected, customary, universal type results of high quality and creativity; and
3) A rating that makes executives feel valued
Challenge: How do we deal with pay compression?
1) Understanding and communicating the value proposition for SES
2) Addressing the rising entry level SES salaries
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Goal 2: Mission Ready Workforce
Sustaining a capable, agile, and decisive civilian workforce
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Strategic Human Capital Management
Strategic Human Capital Management Goal:
Ensure the Department has the capabilities (numbers) and the competencies (skill set) to meet current and future (7-10 years out)
mission requirements for expeditor nary (contingency ops & humanitarian assistance) and non-expeditionary mission
requirements.
Considering:
• Projected retirements (by % eligible for optional/% eligible for early)• Attrition Rate• Emergent Mission requirements• Appropriate Civilian/Contractor workforce mix (Current High
Congressional Interest)
Statutory Requirement NDAA FY06
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Creating a “Ready” Civilian Workforce
Issue: Civilian Employee Career Management is mostly ad-hoc
No mechanisms to assess “readiness” of civilian workforce to meet everyday missions, emerging missions, as well as contingencies, i.e., Tsunamis, Katrina, Provincial Reconstruction Teams (PRTs) …etc.
Sustaining a capable, agile, and decisive civilian workforce
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Where are we Today• Determining workforce competency & capability needs based on current/future
mission requirements Accomplished through OSD& Component Functional Community Managers Managed by a Civilian Readiness Program Office Institutionalized in DoDI 1400-25, Vol 250, Civilian Strategic Human Capital Management Reports to Congress required by NDAA FY2006 and GAO Follow-up review
• Ensuring workforce has competencies to perform in national security emergency response events involving interagency members Implemented National Security Professional Directive (NSPD) (EO 13434, May 17, 2008) Member of the NSPD Executive Steering Committee Identified GS-13 through SES NSPD positions Continuing briefings and training of identified DoD NSPD members (including SES)
• Build a civilian expeditionary workforce that is “Ready, trained, and cleared” Governing DoD directive issued, January 23, 2009 –
—Medical Care—Release of Volunteers—Awards
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Civilian Expeditionary Workforce
Challenge: Civilians are, and will continue to be, called to support contingency operations, pre and post deployment
Way Ahead:
• Develop solutions to our RFF (DoD and Interagency)
• Create a “new breed” of HR advisors for CoCOMs
• Implement functional community mangers
• Build capacity to manage civilian deployments
• Reorient policies – institutionalize deployments for civilians
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What Do We Mean by “Civilian Expeditionary Workforce” Capability?
• A ready, trained, and cleared workforce for rapid response and quick assimilation into new environments to support:
• Humanitarian missions, disaster relief, restoring order in civil disorders
• Security, Stability, Transition, and Reconstruction operations
• Contingencies, emergencies, and combat operation missions of DoD or remain in place and respond with the same swiftness to such events
Sustaining a capable, agile, and decisive civilian workforce
Building Civilian Deployment Capacity
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The Civilian Expeditionary Workforce (CEW)
Purpose: Improve civilian workforce readiness capability with an expeditionary workforce capability
Outcomes:
A subset of the DoD civilian workforce that is:-- Ready
-- Trained
-- Cleared
-- Equipped
For rapid response and quick assimilation into new environments to support expeditionary requirements (includes humanitarian, SSTR, contingencies…etc)
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New Civilian Expeditionary Workforce Model
Features:
• Designated subset of employees to respond within 72 hours to 30 days of notification
• EE - Emergency Essential - a position-based designation to support combat operations or combat-essential systems in a combat zone (10 U.S.C. 1580). Deployability required as condition of employment
• NCE - Non Combat Essential - a position-based designation to support non combat missions. Deployability required as condition of employment
• CBV - Capability Based Employee Volunteers –
a personnel-based designation to support voluntary identification of capabilities outside scope of an employee’s position for EE and NCE requirements
• Inventory of former or retired DoD Employees prepared to support backfill or deployed requirements
All Employees
Expeditionary Corps
Reserve Team(Former DoD Civil
Service and Retirees)
EE
NCE
CBV
Language Corps
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New Sourcing Model
Objectives:
• Ensure civilians are a sourcing solution • Institutionalize a planning and sourcing process
Background: • Currently, there are 2 Methods for Sourcing Requirements:
• Request for Forces (units, brigades, detachments). Civilians may be embedded in those Forces
• Individual Augementees for unexpected and new Mission Requirements
• New Option:
• Leverages lessons learned • Creates “New Breed” HR advisor for CoCOMs• Links Component and OSD Functional Community Managers in processes• Establishes CPP/CPMS Readiness Unit as single POC to coordinate and facilitate
expeditionary requirements (JFCOM equivalent and virtual support office for sourcing civilian requirements)
• Links DUSD(CPP) to Sourcing and DepOrds Decisions
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New Resourcing Model
Objectives:• Create a ready, transparent, and simplified process to obtain funding for Expeditionary
Workforce requirements, including backfill needs
Key Features:• New guidance issued by OSD (Comptroller)
– Establishes resourcing accountability in DoD Components – Appoints a single Component/Agency-level POC to manage deployment financial
resources – Requires immediate notification of the Component/Agency Comptroller and
Contingency Budget Officer, as well as the local Commanding Officer, Comptroller or Resource Manager, when DoD civilians are selected for expeditionary opportunities
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Back Up Slides
34
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
4-Jun 5-Jun 6-Jun 7-Oct 8-Jun 21 Jan 09
Other Federal Employees
DoD Civilian Employees
Contractor Employees
Total
Jun-04 Jun-05 Jun-06 Oct-07 Jun-08 Jan 09
Other Federal Employees 1,857 624 1,018 455 639 813
DoD Civilian Employees 2,838 3,905 4,107 5,210 4866 4908
Contractor Employees 23,610 31,471 25,832 32,470 29418 30820
Total 28,295 35,946 30,957 38,135 34923 36544
Deployed Civilians to CENTCOM AOR
Source: JCS-J1 as of Jan 09
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DoD Civilian Employment – DemographicsSenior Executives
EXECUTIVES - 1,588
EX, 25, 2%
ES, 1,253, 78%
SL, 40, 3%
ST, 123, 8%
IE, 60, 4%
IP, 87, 5%
EX ES SL ST IE IP
SENIOR EXECUTIVE SERVICE - 1,253
Career, 1,171, 94%
Non-Career, 56, 4%
Limited, 23, 2%
Unspecified, 3, 0%
Career Non-Career Limited Unspecified
Data Source for Appropriated Fund Only: CMIS Effective 1/31/2009
36
DoD Civilian Employment – DemographicsSenior Executives
EXECUTIVES - 1,588
0
100
200
300
400
500
600
IP 18 17 30 22
IE 10 11 22 17
ST 40 37 32 14
SL 2 7 16 15
EX 4 4 3 14
ES 269 333 168 483
Army Navy Air Force 4th Estate
SENIOR EXECUTIVE SERVICE - 1,253
0
100
200
300
400
500
600
Unspecified 0 0 1 2
Limited 3 4 0 16
Non-Career 10 8 8 30
Career 256 321 159 435
Army Navy Air Force4th
Estate
Data Source for Appropriated Fund Only: CMIS Effective 1/31/2009
37
DoD Civilian EmploymentSenior Executives: Diversity
RACE
AI/AN, 9, 1%
Asian, 42, 3%
Black/AA, 53, 3%
NH/PI, 0, 0%
White, 1,452, 91%
Multiracial, 9, 1%
Identity Pending, 2,
0%
Race Unspecified,
21, 1%
AI/AN Asian Black/AA
NH/PI White Multiracial
Identity Pending Race Unspecified
ETHNICITY
Hispanic, 26, 2%
Non-Hispanic, 1,560, 98%
Unspecified, 2, 0%
Hispanic Non-Hispanic Unspecified
All Executives – 1,588Data Source for Appropriated Fund Only: CMIS Effective 1/31/2009
38
DoD Civilian Employment Senior Executives: Diversity
GENDER
Female, 332, 21%
Male, 1,256, 79%
Female Male
DISABILITY
3, 0%
64, 4%
1,521, 96%
Targeted Disb. Other Disability No Disability
EDUCATION LEVEL
No College Degree, 49,
3%
College or Higher, 1,541,
97%
Unspecified, 6, 0%
No College Degree College or Higher Unspecified
VETERANS PREFERENCE
30% Dis Vet, 12, 1%
Non-30% Dis Vet, 86, 5%
No Vet Pref, 1,490, 94%
30% Dis Vet Non-30% Dis Vet No Vet Pref
All Executives – 1,588Data Source for Appropriated Fund Only: CMIS Effective 1/31/2009
