Summary: The federal government counts some 1.8 million employees on its payroll. These workers are the government's greatest asset--its human capital. The landmark federal management reforms of the 1990s signaled the start of a new era in which federal agencies are being held accountable for results. The reforms addressed several key elements of modern performance management: financial management, information technology management, and results-oriented goal-setting and performance measurement. The government's human capital management, the "people factor," has been notably absent from this strategy, however. Given the federal downsizing that has occurred during the past decade, widespread inattention to strategic human capital management may be jeopardizing the government's ability to economically and effectively deliver products and services to the public. Serious concerns are being raised about the aging of the federal workforce, the rise in retirement eligibilities, and steps needed to ensure effective succession planning. The size and shape of the federal workforce, its skills needs and imbalances, and agencies' approaches to managing performance and incentives all need greater attention. Designing, implementing, and maintaining effective human capital strategies will be critical to improving the performance of government and holding federal agencies accountable for their promises to the taxpayers. In this regard, leading private sectors organizations have some important lessons to offer, but it will be the federal government's job to craft human capital systems that deliver for the American people.
