State of Oregon
Transcript of State of Oregon
SecretaryofStateDennisRichardsonAuditsDivision,DirectorKipMemmott
Report2017–21
StateofOregon
DepartmentofAdministrativeServicesShouldEnhanceSuccessionPlanningtoAddressWorkforceRisksandChallengesSeptember2017
SecretaryofStateAuditHighlightsSeptember2017
Department of Administrative Services Should Enhance Succession Planning to Address Workforce Risks and Challenges
Purpose
The purpose of the audit was to determine if and how the State of Oregon could better plan for future key workforce needs, including preparing state employees to fill key roles.
SecretaryofState,DennisRichardsonOregonAuditsDivision,KipMemmott,Director
Key Findings
Within the context that effective succession planning is difficult, complex and is frequently not a priority within the public sector, we found:
1. DAS has not developed or implemented a state‐level succession planning framework, despite recognizing the importance of succession planning.
2. The lack of a succession planning framework increases workforce risks, such as not developing or retaining knowledgeable and skilled employees to perform critical functions.
3. These risks are exacerbated by demographic and economic trends, including increasing retirement rates, and a lack of formal succession planning processes within state agencies.
4. State agencies also report challenges, including inaccessible workforce information, that may hinder strategic human capital management practices and should be addressed at a state level.
To reach our findings we conducted interviews, reviewed documents and reported practices, researched leading practices and analyzed workforce data.
Recommendations
Drawing from national leading practices and benchmarking with other states, the report includes eight recommendations to the Department of Administrative Services focused on implementing a succession planning framework in the Oregon executive branch. Recommendations include providing guidance to agencies, monitoring workforce risks, and working with agencies to identify and address barriers at a state level.
The Department of Administrative Services agreed with our findings and recommendations. The agency’s response can be found at the end of the report.
Background
This audit reviewed succession planning within the Oregon executive branch. Succession planning is an ongoing management process used to ensure workforce continuity and effectiveness, particularly in key leadership and technical functions.
Report Highlights
The Secretary of State’s Audits Division found that the Department of Administrative Services (DAS) should play a stronger leadership role in addressing key workforce risks and challenges within the state executive branch, through enhanced workforce succession planning.
About the Secretary of State Audits Division
The Oregon Constitution provides that the Secretary of State shall be, by virtue of his office, Auditor of Public Accounts. The Audits Division performs this duty. The division reports to the elected Secretary of State and is independent of other agencies within the Executive, Legislative, and Judicial branches of Oregon government. The division has constitutional authority to audit all state officers, agencies, boards, and commissions and oversees audits and financial reporting for local governments.
Audit Team Will Garber, CGFM, MPA, Deputy Director
Andrew Love, Audit Manager
Caroline Zavitkovski, MPA, Principal Auditor
Rod Campbell, MA, MS, Staff Auditor
This report is intended to promote the best possible management of public resources. Copies may be obtained from:
website: sos.oregon.gov/audits
phone: 503‐986‐2255
mail: Oregon Audits Division 255 Capitol Street NE, Suite 500 Salem, Oregon 97310
We sincerely appreciate the courtesies and cooperation extended by officials and employees of the Oregon Department of Administrative Services and state agencies during the course of this audit.
Report Number 2017‐21 September 2017 Succession Planning Page 1
Secretary of State Audit Report
Department of Administrative Services Should Enhance Succession Planning to Address Workforce Risks and Challenges
Introduction
Successionplanninghasmanydefinitions.Forthepurposeofthisaudit,wedefinesuccessionplanningasanongoingmanagementprocessusedtoensureworkforcecontinuityandeffectivenessinkeyleadershipandtechnicalfunctions.Whilethereisalackofconsensusonwhatexactlysuccessionplanningentails,literaturesuggeststhatitismorethanjustplanningforreplacingtopleaders.Successionplanningshouldincludedevelopinga“talentpipeline”throughoutalllevelsofanorganization.Itcanalsoincludeplanningforseniortechnicalroles,suchasheadengineer,inadditiontoleadershiproles.However,thelackofagreeduponterminologyandunderstanding,canmakeexecutingsuccessionplanningmorechallenging.1
Successionplanningisanongoingsystematicprocess.Itinvolvesassessingtheskillsandcompetenciesneededformeetingorganizationalobjectives,implementingworkforcestrategies,andcontinuallyevaluatingandenhancingthesestrategies.Strategiescanincludepreparingemployeesforfuturerolesthroughleadershipdevelopment,careerdevelopment2andknowledgetransfer;targetedrecruitmentandretentionstrategies;anddesigningandcommunicatingcareerpathways.Successionplanningisacomponentofstrategichumancapitalmanagement.3
Effectivesuccessionplanningmitigatesworkforcerisks.Ithelpsorganizationsretainknowledgebyidentifyingneedsandputtingstrategiesintoplacetotransferknowledgeandretainknowledgeableemployees.Italsohelpsorganizationsidentifyandexecutestrategiestoclosegapsintechnicalandmanagerialcompetencies.Additionally,successionplanning
1Successionplanningisalsocalledsuccessionplanningandmanagement,andsuccessionmanagement,withsomevariationinmeaning.2Developmentreferstolearningexperiencesforlong‐termcareergrowthandfuturepositions,asopposedtotraining,whichistypicallyfocusedonacquiringskillsneededtoeffectivelyperformone’scurrentposition3Strategichumancapitalmanagementrepresentstheentirerangeofpracticesandprocessesformanagingpeopleinanorganization.
Succession planning is an ongoing process used to ensure workforce continuity and effectiveness
Report Number 2017‐21 September 2017 Succession Planning Page 2
candemonstrateformalandintentionalinvestmentsincareerdevelopmentandcareerpathstocurrentandpotentialemployees.Providingafairandclearprocessforsuccessionintofuturerolescanimproverecruitment,retentionandemployeeengagement.
Finally,asuccessionplanningframework,tailoredtoanorganization’sneeds,canguidesuccessionplanningefforts.Frameworkscanincludeobjectivesandvision,guidelinesandpoliciesthatsetoperationalparameters,definitionsofkeyconcepts,formalizedprocesses,clearlydefinedrolesandresponsibilities,andtoolsortemplates.Theycanalsoincludesystems,informationandtrainingtosupportprocesses.
Thestrategicimportanceofsuccessionplanninghasbecomemorepressingowingtochangingworkforcedemographics,includingahigherproportionofworkersover60andincreasingworkforcediversity.Moreworkersatornearretirementagepresentsadditionalrisksofknowledgeloss.Anincreasinglydiverseworkforcepresentsincreasedcomplexityandanopportunitytocapitalizeonbroadbackgroundsandperspectives,aswellastodiversifymanagementandleadershippositions.
Oregonhasahigherproportionofworkersover60thaninthepast.About15%oftheworkforceis60orolder.4AsshowninFigure1,thispercentagehasalmostdoubledsince2006.
Figure 1: Distribution of Executive Branch Employees in Age Categories, in 2006 and 2016
Source: Oregon Audits Division, using Department of Administrative Services (DAS) personnel data, obtained from Position and Personnel Database (PPDB).
Additionally,thestateworkforcehasbecomemoregenerationallydiverseasbabyboomersareleavingandbeingreplacedbygenxersand
4Thisauditfocusedonpermanentemployeesintheexecutivebranchandexcludedthejudicialandlegislativebranches,semi‐independentagencies,andtemporary/seasonalworkers.Futurereferencesinthereportto“workforce”refertothisnarrowerdefinition,unlessotherwisespecified.
7%
21%
30%34%
8%8%
23%
28% 28%
15%
Under 30 30s 40s 50s 60 and Over
2006 2016
Changing state employee demographics increase the need for effective succession planning
Report Number 2017‐21 September 2017 Succession Planning Page 3
millennials.Figure2illustratesthisdemographicshift.Generationaldifferencescanaddcomplexity,butalsodifferentperspectivesandopportunitiestotheworkforce.
Figure 2: Distribution of 2006 and 2016 Workforce in Generation Categories5
Source: Oregon Audits Division, using DAS personnel data, obtained from PPDB.
Theworkforceisalsobecomingmoreraciallyandethnicallydiverse,particularlyamongyoungerworkers.Figure3showsincreasingdiversityacrossallagegroups,butparticularlyamongworkersunder30.ThismaypresentanopportunitytobuildatalentpipelinethatismorereflectiveofthepeopleofOregon,withastrongerdiversityofperspectives.
Figure 3: Workforce Representation of People of Color6 (as Percentage of Workforce) within Age Categories, in 2006 and 2016
Source: Oregon Audits Division, using DAS personnel data, obtained from PPDB.
5GenerationdefinitionsarebasedonPewResearch’sdefinitions–MillennialGeneration:born1981‐97,GenerationX:born1965‐80,BabyBoomGeneration:born1946‐64,andSilentGeneration:born1928‐45.6EmployeesidentifiedasAfricanAmerican,AsianAmerican,Hispanic,NativeAmerican,PacificIslander,ormulti‐ethnicinthestate’spersonneldatasystem.
2%
31%
61%
6%
20%
43%36%
1%
Millennials Gen Xers Baby Boomers Silents
2006 2016
Under 30, 18%
28%
30s, 17%
21%
40s, 14%
18%
50s, 10%
15%
60 and Over, 8%
12%
2006 2016
Report Number 2017‐21 September 2017 Succession Planning Page 4
Thestate’sworkforceperformsjobsthatdirectlyaffectthelivesofOregonians;itisthestate’smostimportantstrategicresource.Fundingthisresource,throughsalariesandbenefits,iscostly.
Intheexecutivebranch,Oregonemployedover35,000permanentemployeesin2016.7Theseemployeesperformawidevarietyofjobstoensurethehealth,safety,andeducationofOregonians;protecttheenvironment;andboosttheOregoneconomy.Forinstance,statepoliceofficerspromotehighwaysafety,environmentalregulatorssafeguardcleanairandwater,andemploymentspecialistshelpunemployedOregoniansgetbacktowork.Thosearejustafewexamplesfromover500positionclassifications.Manyjobsrequiretechnicalskillsoradvancedtrainingandoftendrawonyearsofaccumulatedknowledge.
Thestateexpendssignificantresourcesonitsworkforce.Thestatebudgetedroughly$7billionforoverallstateemployeecompensationinthe2015‐17biennium.8Thisrepresents10%oftheoverallstatebudget.StateGeneralFundmoniesaccountedfornearlyhalfofthatamount.
StatelawgivestheOregonDepartmentofAdministrativeServices(DAS)responsibilityforthestate’spersonnelsystem.9DAShastheauthoritytodelegatehumanresource(HR)managementand,infact,manystateagenciesmaintaintheirownHRfunctions.
TheChiefHumanResourcesOffice(CHRO),withinDAS,isresponsibleformanagingstatepersonnelprocesses,includingmaintainingtheclassificationandcompensationsystems,facilitatingcollectivebargainingnegotiations,administeringemployeetraining,providingHRservices,andestablishingstatewideHRpolicy.CHROprovidestrainingrelevanttosuccessionplanning.Forexample,itprovidescentralizedleadershipdevelopmenttrainingtoaround30participantsayearfrommultiplestateagencies,throughaprogramcalledLeadershipOregon.Italsooffersmanagementtrainingforcurrentandprospectivemanagers.
CHROalsooverseesstateagencyHRfunctions.Manystateagencies,particularlylargeragencies,havetheirownHRfunctions.AgencyHR
7AccordingtotheLegislativeFiscalOffice,therewereover40,000budgetedpositions(slotsforworkers)throughoutallthreebranchesofstategovernmentin2015‐17.However,10–15%ofpositionsarevacantatanytime.8Thisincludessalaries,benefitsandotherpayrollexpensesforallthreebranchesofstategovernment.9OregonRevisedStatute240
The workforce is among the state’s most important and costly resources
The Department of Administrative Services has responsibility for the personnel system and policy
The Oregon executive branch employs over 35,000 people.
Report Number 2017‐21 September 2017 Succession Planning Page 5
departmentsareresponsibleforstrategichumancapitalmanagement,suchassuccessionplanning,fortheiragencies.Incontrast,atleast20stateagencies,boards,andcommissionspayassessmentfeesforCHROtoprovideHRsupportservices.CHROoffersadditionalfee‐basedHRconsultingservicestoagencies,whichcouldincludesuccessionplanning.
Forthe2017‐19biennium,CHRO’sbudgetisroughly$34millionwith76positions.TheLegislatureincreasedCHRO’sbudgetsubstantiallybyadding$20millioninfundingforanewhumanresourceinformationsystem,whichincludes30newlimiteddurationpositionsandthreenewpermanentpositions.TheLegislaturealsoeliminatedthreepermanentCHROpositions‐anexecutiverecruiter,atrainingdevelopmentspecialist,andanadministrativespecialist.CHRO’sprincipalrevenuesourceisfromassessmentofstateagencies.
Objective
OurauditobjectivewastodetermineifandhowtheStateofOregoncouldbetterplanforfuturekeyworkforceneeds,includingpreparingstateemployeestofillkeyroles.
Scope
TheauditfocusedonsuccessionplanningandmanagementwithintheexecutivebranchincludingassessingtheresponsibilitiesandactivitiesofDASandselectedstateagencies.
Methodology
Toaddressourobjective,weexecutedamulti‐facetedmethodologythatincluded,butwasnotlimitedto:conductinginterviews,administeringaquestionnaire,reviewingdocumentation,andanalyzingworkforcedata.
Weconductedinterviewswithapproximately50stateagencyleaders,employees,andstakeholders,includingdirectorsanddeputydirectors,HRdirectorsandanalysts,policyanalysts,economists,internalauditors,projectstaff,andotherrepresentativesfromorganizationsincluding:
OregonDepartmentofAdministrativeServices; EightlargeOregonstateagencieswith250ormoreemployees‐the
OregonDepartmentsofEducation,HumanServices,Corrections,Employment,FishandWildlife,Transportation,ConsumerandBusinessServices,andRevenue;
Fivesmall/mediumstateagencies,boards,andcommissionswithlessthan250employees‐OregonPublicUtilityCommission,DepartmentofVeterans’Affairs,DepartmentofLandConservationandDevelopment,DepartmentofGeologyandMineralIndustries,andBoardofDentistry;
OregonGovernor’sOffice;
Objective, Scope and Methodology
Report Number 2017‐21 September 2017 Succession Planning Page 6
Laborgroups‐ServiceEmployeesInternationalUnion(SEIU)andAmericanFederationofState,CountyandMunicipalEmployees(AFSCME);and
HRofficesinsevenotherstates‐Washington,California,Texas,Ohio,Tennessee,Delaware,Pennsylvania.
Inadditiontointerviews,wefurtherreviewedpracticesattheeightlargeOregonstateagencies,throughadetailedquestionnaire.WeaskedHRdirectorstocoordinatewrittenresponsestodetailedquestions,includingprovidingsupportingdocumentation.Theseagenciescollectivelyemployoverhalfofexecutivebranchemployeesandprovideservicesineightdifferentprogramareas,asdefinedinthestatebudget.
WeanalyzedDASworkforcedataforpermanentemployeesintheexecutivebranch,coveringtheperiod2006–2016.Weassessedthedataforreliabilityandconcludeditwassufficientlyreliableforourauditpurposes.
WereviewedreportsanddocumentationpertainingtosuccessionplanningandrelatedpracticesandprojectsintheOregonexecutivebranch.Wealsoreviewedpersonnelpolicies,laws,andleadingnationalpractices.10
Duetothebreadthoftheauditandnatureofthetopic,wereliedontestimonialevidence,suchasinterviews,butobtainedsupportingdocumentationorindependentverificationwhenpossible.Wealsofocusedoncentraloffices,anddidnotconductinterviewsinfieldoffices.
Weconductedthisperformanceauditinaccordancewithgenerallyacceptedgovernmentauditingstandards.Thosestandardsrequirethatweplanandperformtheaudittoobtainsufficient,appropriateevidencetoprovideareasonablebasisforourfindingsandconclusionsbasedonourauditobjective.Webelievethattheevidenceobtainedandreportedprovidesareasonablebasistoachieveourauditobjective.
10SourcesforleadingpracticesincludeUSOfficeofPersonnelManagement,NationalAssociationofStatePersonnelExecutives,SocietyforHumanResourceManagement,GovernmentFinanceOfficersAssociation,“EffectiveSuccessionPlanning,”byWilliamJ.Rothwell,andreportsandwebsitesfromotherstates.
Report Number 2017‐21 September 2017 Succession Planning Page 7
Audit Results: The Department of Administrative Services Should Enhance Succession Planning to Address Workforce Risks and Challenges
AskilledstategovernmentworkforceisessentialfordeliveringhighqualityservicestoOregonians.TheDepartmentofAdministrativeServices(DAS)shouldplayastrongerroleinensuringcontinuityofaqualityworkforcethroughenhancedsuccessionplanning.
Currently,theOregonexecutivebranchlacksarobustworkforcesuccessionplanningframework.Withinthecontextthateffectivesuccessionplanningisdifficult,complexandisfrequentlynotaprioritywithinthepublicsector,DAShasnotprioritizeddevelopingandadministeringasuccessionplanningframeworkwithinthestateexecutivebranch.Mostofthestateagencieswereviewedalsohavenotprioritizedformalizingsuccessionplanningprocesses.Asaresult,thestatefacessignificantworkforcerisks,especiallyowingtoshiftingdemographicsandincreasingretirementsandturnover.LeadingpracticeliteratureandsuccessionplanningpracticesimplementedbyotherstatescanbeinstructivetoDASasitmovesforwardonthisstrategichumancapitalmanagementobjective.Weofferseveralrecommendationsinthisregardforenhancingstateworkforcesuccessionplanningefforts.
TheOregonexecutivebranchlacksarobuststatewideworkforcesuccessionplanningframework.DASutilizesadecentralizedapproachtostrategichumancapitalmanagement,withdecision‐makingoftendelegatedtostateagencies.Withinthismodel,DASdoesnotprovideformaloversightandhasnotdevelopedorprovidedsuccessionplanningguidancetostateagencies.Additionally,whilethestateagencieswereviewedaremanagingtheirworkforce,mosthavenotcreatedorfullyimplementedtheirownsuccessionplanningprocesses.Furthermore,bothDASandstateagencieslackefficientaccesstodataandthoroughinformationaboutworkforceriskstoguidetheiractionsanddecisions.
DAS does not provide formal workforce succession planning oversight or direction to state agencies
DAShasnotdevelopedorcommunicatedformalpolicyandguidancetofacilitatesuccessionplanningforstateagencies.Currently,stateagencieslackaccesstostatewideobjectivesorvision;writtentoolkits,templatesorprocesstools;anddefinitionsofkeyconcepts,suchasdifferentiatingworkforceandsuccessionplanning.Furthermore,DAShasnotprovidedguidanceonthestate’srecommendedapproachesforincorporatingpublicsectorprinciplesandvaluesoffairnessandequity.WhilesomestateagencyHRdirectorsexpressedconcernthatifDAStookamoredirectiverole,itcouldrestricttheirabilitytoinnovateandmeettheirspecificneeds,
Oregon lacks a robust statewide workforce succession planning framework
Report Number 2017‐21 September 2017 Succession Planning Page 8
otheragencyHRdirectorsandexecutivestoldusthathavingacentralframeworkandvisioncouldmakesuccessionplanningeasier.
Inadditiontothelackofdirection,thereisalsominimaloversightfromDAS.DAShasdelegatedsuccessionplanning,atleastimplicitly,tostateagencies,butdoesnotsystematicallychecktoensuresufficientactionsandeffortsareoccurring.However,thechiefhumanresourcesofficerdoesmeetregularlywithstateagencyHRdirectors,wheretheydiscusstopicsrelatedtostrategichumancapitalmanagementissues.
State agencies lack systematic succession planning processes
Risksresultingfromthelackofastatewidesuccessionplanningframeworkareexacerbatedbecauseindividualagencieslackformalandtransparentsuccessionplanningprocesses.Specifically,whilemanyareproactivelyworkingonworkforcedevelopmentactivities,thestateagencieswereviewedgenerallylacksystematicsuccessionplanningprocessesthatcouldtarget,improve,andinformthoseactions.
Alltheagencieswereviewedtakesteps,formallyandinformally,topreparetheirworkforceforfuturepositionsthroughcareerdevelopment.Thesestepsincludeleadershipdevelopmentprograms,DAS’semergingmanagertraining,jobrotations,mentoring,andcoaching.Forinstance,nearlyallreviewedagencieseitherhaveformalleadershipdevelopmentprogramswithintheiragenciesorsendemployeestoleadershiptrainingoutsidetheiragencies,suchasDAS’LeadershipOregon,orboth.Allofthemalsoreportedofferinginformalcareerdevelopmentopportunities.Theseactivitiesprovideagoodplatformonwhichtoimplementmoreformalsuccessionplanningactivities.
However,mostoftheseagencieslackformalprocessestoassessworkforceneeds,andmonitorandevaluateworkforceoutcomes.Forinstance,mostagenciesdonothaveprocessesinplacetoassessfutureworkforcecompetencyandskillrequirements,inordertoinformworkforcestrategies.Additionally,agenciesdonotclearlythreadtheirworkforcedevelopmentactionstotheiragency’sstrategicplansandgoals.
Whileagenciestakeactionstodevelopemployees,thereareadditionalrisksstemmingfrominformalworkforcedevelopmentactivities.Forexample,someagencieshavedelegatedthemajorityofsuccessionplanningdecisionstomanagers,withoutstrongcontrolsinplacetoensuretheeffectiveandtransparentimplementationandmanagementoftheseactivities.Forinstance,agenciesgenerallylackprocessesfortrackingemployeedevelopmentactivities,outsideofthoseregisteredthroughthestate’sonlinetrainingportal.
DAS and agencies also lack strategic personnel management information to support succession planning
Limitsondataaccessibilityandavailabilityinhibittheusageofstrategicpersonnelmanagementinformation,criticalforinformingagencystrategy
Report Number 2017‐21 September 2017 Succession Planning Page 9
andpersonnelmanagementdecisions.Theaccessibilityandavailabilityofworkforcedataislimitedintwoways.First,thecurrentstatepersonneldatasystemisover20yearsold.Itlacksfunctionalityforuserstoproducecustomreportseasilyandthesystemdoesnothavebuilt‐incareerplanningtools.Somedataelements,suchasemployeeskillsandcompetencies,arealsonotcollected.Second,informationonretirementeligibilityislimited.DASdoesnothaveaccesstodatafromthepensionsystem,soretirementeligibilityreportsareestimated,ratherthanactual.
Somerecentenhancementsmayimproveworkforcedataaccessibility.Forexample,DASmadesystemchangestoprovideforeasieronlineaccesstoestimatedretirementeligibilityreportsforstateHRpersonnel.TheLegislaturealsoapprovedfundingforanewhumanresourceinformationsysteminJuneof2017.DASestimatesthenewsystemwillbefullyimplementedbythesummerof2018.Thenewsystemshouldallowgreateraccessibilitytoworkforcedataformoreusers.
Inadditiontochallengeswiththedatasystem,DASisalsonotregularlymonitoring,assessing,ordisseminatinginformationaboutworkforcerisks.DASdoesnotregularlyassessstate‐levelworkforcerisks,suchasrisksofknowledgelossfromretirements,throughdataanalysisorbysystematicallycollectinginformationfromstateagenciesaboutrisksoractivities.Inparticular,DAShasanopportunitytoassessrisksforpositionsthatarecommonthroughoutstategovernment,suchasinformationsystemsspecialistsorHRanalysts.However,DASdoesgathersomeworkforceinformationonarequestedorevent‐drivenbasis,forexampletopresenttotheLegislatureorfulfilladatarequest.
DAShasnotprioritizeddevelopingandimplementingarobustsuccessionplanningframeworkdespiterecognizingtheimportanceofsuccessionplanning.DAShasstartedworkonastate‐levelproject,butuptothispoint,otherbusinessneedsandstrategicinitiativeshavetakenprecedence.AgencyHRdirectorsandexecutivesalsoreportedcompetingprioritiesandstate‐levelbarriersaschallengestosuccessionplanning,whichlessenincentivestoprioritizethiswork.Thisisnotanuncommonsituationwithinthepublicsector.
Despite recognized importance, implementing a framework has not taken priority over competing initiatives
ThechiefhumanresourcesofficerandagencyHRdirectorsandexecutivesconsidersuccessionplanning,careerdevelopmentandfillingkeypositionsasimportant.However,otherinitiativeshavetakenpriorityoverdevelopingandimplementingarobustsuccessionplanningframeworkintheOregonexecutivebranch.
Implementing a succession planning framework has not been a state priority
Report Number 2017‐21 September 2017 Succession Planning Page 10
DAShasworkedoninitiatingastate‐levelprojectfocusedonsuccessionplanningforseveralyears.In2014,DASstaffconductedaliteraturereviewofbestpractices,compiledworkforcedata,anddraftedawhitepaper.In2016,aninternatDASinterviewedstateagenciesandrepresentativesfromotherstates.Atthattime,DASstaffreportedplanningtodraftaprojectproposal.However,akeyemployeelefttheagencyandDASdidnotmakeadditionalprogress.DASstaffattributedthelackofprogresstothebusylegislativesession.
Whiletherehavenotbeenanyformalstatewidesuccessionplanninginitiatives,DAShasworkedonotherstrategicstatewideprojectsthatcouldsupportsuccessionplanninginthefuture.Forinstance,aspartoftheOregonManagementProject,11DASstaffandagencyrepresentativescreatedalistofstatewidecompetenciesformanagers.SomeagencyHRdirectorsreportedplanstoincorporatethesecompetenciesinagencysuccessionplanningandmanagertraining,toensuretheirworkalignswiththeoverallstatestrategy.
State agencies report competing priorities and state‐level barriers
StateagencyHRdirectorscitedlimitedresourcesandcompetingprioritiesassignificantbarriersaffectingsuccessionplanningactivities.Operatinginanenvironmentwithoutastate‐levelsuccessionplanningframework,realandperceivedbarriersadddisincentivesforpursuingformalsuccessionplanningactivities.Themesaboutstate‐levelbarriersandchallengesincludethelackofaccessibledata,restrictivepersonnelrulesandstructures,publicsectorprinciples,andthelackofastate‐levelframeworkandstrategyforinformationsharingandcollaboration.
Asnoted,Oregon’sdatasystemisover20yearsoldandlacksfunctionality.HRdirectorsandagencyexecutivesreportedthatthecurrentworkforcedatasystemmakeselementsofsuccessionplanningmorechallenging.HRdirectorsanticipatethatanewhumanresourceinformationsystemwillimproveandstreamlinestrategichumancapitalmanagement,includingsuccessionplanning.Thenewinformationsystemisalsoexpectedtohavebuilt‐insuccessionplanningtools,suchastoolstoidentifytalentpoolsandmonitorsuccessorreadiness.However,thetoolsavailableinanewsystemwillonlybeusefulifemployeesactivelyusethemanddataisaccurateandcomplete.
Additionally,publicsectorpersonnelrulesandstructures,suchastheclassificationandcompensationsystem,arecomplexandareperceivedasrigid.Thesecontrolsareinplaceforimportantreasons,includingensuring
11TheOregonManagementProjectisanEnterpriseLeadershipTeamprojectco‐sponsoredbythechiefoperatingofficerandthechiefhumanresourcesofficer.TheEnterpriseLeadershipTeam,comprisedofstateagencyleaders,advisesthegovernoronmattersrelatingtothestateenterprise.Theprojectaimstoaddressclassificationandcompensation;overallphilosophy;andtraining,recruitmentandretentionofseniorleadershipprofessionals.Theclassificationandcompensationelementoftheprojectisonhold,whiletheyworkontheotherelements.
Report Number 2017‐21 September 2017 Succession Planning Page 11
consistentandequitablecompensationpractices.However,executivesandHRprofessionalsviewsomeofthesecontrolsasburdensomewhenitcomestostrategichumancapitalmanagement.Forinstance,someagencyHRdirectorsandexecutivesreportedthatredesigningpositionstocreateclearercareerpathsorreassigningemployeesfordevelopmentpurposeswaschallengingandtimeconsuming.OneHRdirectorreportedthatlimitsincompensationflexibility,suchasnotbeingabletoofferageographicpaydifferentialincompetitiveurbanareas,affectedtheagency’sabilitytotargetrecruitmentandretentionstrategies.Smalleragenciesreportedhavinglessflexibilitytoleaveapositionvacantorshiftemployeesaround.
Furthermore,alackofclarityandconcernsaboutthebestapproachtomeetpublicsectoremploymentprinciplesandvalueshasledtosomereluctancetotakeactionamongmanagersorHRprofessionals.Publicsectorpersonnellawsandrulesarebasedonmeritsystemprinciples,intendedtoensurethathiringandadvancementisbasedonacandidate’sability,throughafairandopencompetitiveprocess.Additionally,thevastmajorityofstateemployeesarerepresentedbylabororganizations.
Giventheseprinciplesandvalues,someHRdirectorsreportedreluctanceintheiragencytotakingactionsthattheywereconcernedwouldappearasunfair,inappropriateordiscriminatory.Forinstance,someHRdirectorsreportedconcernsaboutidentifyingspecificindividualsashavingpotentialforadvancement,fearingitcouldappearunfairorimplythatanemployeewasguaranteedaposition.SomeHRdirectorsexpressedperceptionsthatsuccessionplanningismorecomplicatedforcollectivelybargainedemployees.
Finally,somestateagencyexecutivesandHRdirectorsreportedbeingisolatedfromotheragenciesandDAS,unawareofwhatotheragenciesweredoingwithstrategichumancapitalmanagement.ThechiefhumanresourcesofficerhasinitiatedregularmeetingswithstateagencyHRdirectorstoimprovecommunicationsandcollaboration.However,giventhelargenumberofstateagencies,thecurrentapproachmaynotbesufficienttoaddressallconcerns.
Thelackofaformalstatewidesuccessionplanningframeworkhasseveralnegativeimpacts.Theseincludeanincreasedriskofinstitutionalknowledgeloss,alackofrequiredskillsetsandcompetencieswithintheworkforce,andmissedopportunitiesforimprovedemployeerecruiting,retention,moraleandengagement.Theserisksarefurtherexacerbatedbycurrentworkforcetrends.
The lack of a succession planning framework increases key workforce risks
Report Number 2017‐21 September 2017 Succession Planning Page 12
State government faces risk of knowledge loss, exacerbated by turnover risks
Ifknowledgeisnotdocumentedandtransferredwhenemployeesleaveanorganization,itwillbelost.Withoutplanningandimplementingstrategies,institutionalknowledgelosscanresultinreducedefficienciesorqualityofservice.Increasingretirementandotherturnoverrisksfurtherexacerbaterisksofknowledgeloss.Somespecializedpositionsalsohavehigherretirementrisks.Knowledgeincludesanunderstandingofwhathasworkedornotworkedinthepast,specializedknowledgeaboutanorganizationorindustry,andevenprofessionalrelationships.
Retirementsandotherturnoverrisksareincreasinginthestate,leadingtogreaterriskofknowledgeloss.AsshowninFigure4,theannualnumberofretirementshasincreasedoverthelastdecade.Additionally,voluntary,non‐retirementresignationshaveincreasedoverthelasteightyears,afteradecreaseduringtherecession.Demographicandeconomictrends,suchasworkforceagingtrendsandlowunemploymentrates,suggestincreasesinretirementsandresignationscouldcontinue.Additionally,constrainedbudgetscouldresultinlayoffs,dismissals,ordelayedhiring,addingtopotentialloss.
Figure 4: Annual Numbers of Resignations and Retirements12
Source: Oregon Audits Division, using DAS personnel data.
12Thetotalnumberofstateemployeesalsoincreasedoverthisperiod.Asaresult,theproportionofemployeesretiringincreasedonlyslightlyfromaround2%to3%oftheworkforce,between2006and2016.Thecombinedturnoverratefromresignationsandretirementsin2016wasroughlyequalto2006ataround8.5%,buthigherthanduringtherecessionat6.5%in2010.
0
500
1000
1500
2000
2500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Retirements Resignations
One HR analyst told us that when people retire, her agency seems caught by surprise, even after receiving advanced notice.
They have hired back retirees on a temporary basis, because no one else knew how to do the job.
Report Number 2017‐21 September 2017 Succession Planning Page 13
Whileresignationsaremorenumerousthanretirements,retirementsareparticularlyconcerningwhenitcomestoknowledgeloss.Mostretireesleavewithsignificantexperience.Oftheroughly1,000permanentstateexecutivebranchemployeeswhoretiredin2016,90%had10ormoreyearsofstateexperience.Forcomparison,nearly2,000employeesvoluntarilyresignedin2016,butoverhalfhadworkedatthestateforlessthanfiveyears.
Additionally,somespecializedpositionshavehigherretirementrisksthanothers.Forexample,nearlyallofthestate’sdentalinspectors,whoinvestigatecomplaintsofillegalandunprofessionalconductbyOregonlicenseddentists,arecurrentlyeligibletoretire.Inanotherexample,about30%ofinformationsystemspecialistswillbeeligibleforfullretirementwithinfiveyears.
State government faces risk of inadequate workforce skills and competencies, especially in competitive positions
Thelackofasuccessionplanningframework,increasestheriskofashortageofemployeeswithkeycompetenciesinthetalentpipeline.Risksarehigherforspecializedandcompetitivepositionsthatmaydrawfewerexternalcandidates.Inadequateworkforceskillsandcompetenciescanaffectservicequality,increasethetimeapositionisvacant,orincreasetrainingcosts.
Nationalresearchhasfoundorganizationsfacerecruitingchallenges,forjobswithstrategicimportanceandinpositionsrequiringscience,technology,engineeringandmathskills.HRleadersinstateagenciesreportedconcernswithhavingadequatelypreparedmanagersandleaders,aswellasadequateskilledtalentforspecializedandcompetitivepositions,suchasnursesorITprofessionals.Theyalsoreportedconcernswithrecruitingincertainareasofthestate,suchasdrawingcandidatestoruralareasorcompetingwithhigherpayingcompetitorsinthePortlandmetroarea.
State risks missing opportunities to improve recruitment, retention, diversity and enhanced employee engagement
Withoutgreaterinvestmentincareerdevelopmentandpathsthroughsuccessionplanning,thestaterisksmissingopportunitiestoimproverecruitment,retentionandemployeeengagement.Clearandfairprocessesandpathwaysforadvancementmaybeparticularlyimportantforfemaleemployeesandemployeesofcolor,currentlyunderrepresentedinmanagementpositions.
Aspartofsuccessionplanning,articulatinginvestmentsincareerdevelopmentandcareerpathscanbeusedasarecruitingtoolortoimproveretention,moraleandengagement.Improvedmoraleandengagementcanaffectthequalityofservicedelivery.Asoneagencydirectortoldus,investinginemployeedevelopmentincreasesproductivityandemployees’“day‐to‐day,wanttocometoworkquotient.”
Report Number 2017‐21 September 2017 Succession Planning Page 14
Fairnessalsoimprovesemployeecommitment.Promotingtransparentprocesses,throughformalsuccessionplanninganddecisionscanalleviateconcernsaboutfairnessinadvancement.Thismaybeparticularlyimportantforretentionandengagementofemployeesofcolorandfemaleemployees.Conversely,leavingdecisionsinformal,couldriskperpetuatingbiases.
Womenandpeopleofcolorarecurrentlyunderrepresentedinmanagementandsupervisorypositions,comparedwiththeirrepresentationintheoverallworkforce.Whileoverhalfofthestateworkforceiswomen,lessthanhalfofmanagersandsupervisors13arewomen.Inaddition,only12%ofmanagersandsupervisorsarepeopleofcolor,notmuchchangedfrom10%tenyearsago,andbelowrepresentationintheoverallstateworkforce(18%).
DAScandrawonpromisingpracticestoinformsuccessionplanningintheOregonexecutivebranch.Bestpracticeliteratureforpublicsectorsuccessionplanningsuggeststhatitshouldbeanongoing,systematic,strategicandtransparentprocess.CentralHRdepartmentsinotherstates,comparabletoCHROinOregon,haveimplementedstrategiesthatcouldbemodelsforDAS.Finally,somestateagenciesinOregonaretakinginnovativestepstointentionallydevelopemployeesthatareworthyofattention.
Succession planning should be an ongoing systematic and strategic process
Accordingtobestpracticeliterature,workforcesuccessionplanninginthepublicsectorshouldbeanongoingsystematicprocesstiedtooverallagencystrategy.Itshouldalsoaccountforpublicsectorprinciplesandbefairandequitable.Onestrategytopromotefairnessistocommunicatetransparentlywithemployeesaboutsuccessionplanning.
Manysources,includingtheUSGovernmentAccountabilityOffice(GAO),USOfficeofPersonnelManagementandtheSocietyforHumanResourceManagement,recommendasystematicprocess,clearlylinkedtoanorganization’sstrategicgoalsandbusinessneeds.
TheOfficeofPersonnelManagement,whichhasresponsibilitiesforfederalpersonnel,hasoutlinedasuccessionplanningprocesswithsixsteps:
1. Linkstrategicandworkforceplanningdecisions.2. Analyzegapsbetweencurrentstateandprojectedfutureneeds.3. Identifytalentwithintheorganization.4. Developsuccessionstrategies.
13Managersandsupervisorsaredefinedasemployeesinmanagement‐serviceorexecutive‐servicewithsupervisoryresponsibility.Non‐supervisorymanagementserviceisnotincluded.
Promising succession planning practices provide insights for addressing workforce risks
Report Number 2017‐21 September 2017 Succession Planning Page 15
5. Implementsuccessionstrategies.6. Monitorandevaluateefforts.
Othersources,suchastheNationalAssociationofStatePersonnelExecutives,recommendtransparencyinsuccessionplanning,particularlyasastrategytoaddresspublicsectorconcernsaboutfairnesswithinthemerit‐basedsystem.Transparencyincludesopenlycommunicatingaboutdevelopmentopportunitiesandthedecisionmakingprocess.Tohelpguideprioritizationefforts,workforcerisksshouldbeidentifiedandassessed.
DAS can leverage succession planning approaches implemented by other states
Oregoncanreviewandadoptsuccessionplanningpracticesusedbysomeotherstatesthathavetakenpromisingsteps.Forexample,somestatespublishanddisseminatetoolkits,monitorstate‐levelrisks,andreadilyprovidedataandguidancetodepartments.Additionally,somestatesfocusonexpandingcentralizedleadershipdevelopmenttraining.Last,somestatesprovideguidanceonapproachestomeetpublicsectorprinciples.
HRofficesinCaliforniaandOhiohavepublishedanddisseminatedtoolkitstoguideagencyworkforceandsuccessionplanning,andprovidedtraininginsuccessionplanning.Californiahostsforumsandalistservonworkforceandsuccessionplanningtopromotesharingandcollaboration.In2016,theCaliforniaDepartmentofHumanResourcespublishedareportonCaliforniastateagencies’barrierstoworkforceandsuccessionplanning,aswellasopportunitiestoimproveHRservicetostateagencies.Thedepartmentinterviewednearly100stateexecutivesforthereport.
Additionally,somestatescollectreportsandinformationfromagencies,whichcouldbeusedtomonitorsuccessionplanningactionsandstatewideworkforcerisks.HRofficesinPennsylvania,Ohio,andCaliforniarequestthatagenciessubmitsuccessionplansorinformationabouttheirstrategiesandworkforceriskstothecentraloffice.Pennsylvaniarollsuptheinformationintoonestate‐levelreport.GeorgiaandTexasmandateinstatutethatagenciesproduceandsubmitworkforceplans.However,mostofthestateswecontacteddidnotrequireplansbylaw.
Furthermore,otherstatesmakeworkforcedemographicdatamoreavailabletoagenciesandthepublicthanOregondoes.Pennsylvania’sHRdepartmenthascreatedaretirementprojectiontoolforagencies.Delawareusesdatafromthepensionsystemtoprovideaccurateinformationonretirementeligibilitytoagencies.Atleasteightstatespublishsomelevelofworkforcedemographicdatapublicallyontheirwebsites.
Somestatesarealsofocusingonexpandingcentralizedleadershipdevelopmentprograms.Tennesseeinparticularhasworkedonimprovingandexpandingleadershipdevelopment,includingcreatingachieflearningofficerposition.Tennesseecentrallytrains250–300employeesayearinleadership,inadditiontoagency‐basedtraining.Washingtonisalsofocusingonbuildingleadershipcapacitycentrally.
Report Number 2017‐21 September 2017 Succession Planning Page 16
Finally,somecentralHRofficeshavealsosentclearmessagesaboutwhatapproachestheyconsiderappropriateforsuccessionplanninginthepublicsector.Forinstance,bothCaliforniaandOhio’sHRofficesrecommendatransparentprocess.California’steamstatesthatallemployeesshouldhavetheopportunitytoexpresstheirinterestinparticipatinginsuccessionplanningactivities.Conversely,Ohiofocusesitsformalsuccessionplanningononlyexempt,non‐unionizedemployees,toavoidconcernsaboutfairness.ArepresentativefromWashingtonreportedthattoaddressconcernsaboutfairness,theyareconsideringcommunicatingtransparentlyabouttheirprocessforidentifyinghighperformingemployeesforleadershipsuccessionplanning.
In Oregon, some agencies are taking innovative approaches to prepare employees for potential future roles
Somestateagenciesareimplementinginnovatestrategiestoprepareemployeesforsuccessionintopotentialfutureroles.Theseincludeagenciesofvaryingsizesandfromdifferentprogramareas.Manyoftheagencieswespokewithprovideformalleadershipdevelopmenttrainingorofferjobrotationsforexperientiallearning,anoften‐citedbestpracticeinemployeedevelopment.Belowaretwoexamplesofdepartmentinnovativesuccessionplanningstrategies.
TheDepartmentofGeologyandMineralIndustrieshasimplementedajobrotationprogramdesignedtogivetechnicalemployeesexperienceinmanagementandleadershippositions.Positionsarefilledonatemporarybasis(onetotwoyears),throughanopencompetitiveselectionprocess.Theprogrambeginswithfillingoneseniorlevelmanagementpositionthroughajobrotation,whichthencreatesacascadingsetofvacancies,inturnfilledthroughmorejobrotations.Thisgivesmultipleemployeesdevelopmentopportunities.ThedepartmentdirectorhadpreviouslyimplementedthismodelattheStateofWashingtonDepartmentofAgriculture,whereitaccomplisheditsgoalsandexceededmanagementandstaffexpectations.
TheDepartmentofConsumerandBusinessServiceshasdesignedaformalsuccessionplanningprogramthatseekstoalignemployeedevelopmentwiththeagency’skeycompetencyneeds.Staffapplytotheprogramandareacceptedonacompetitivebasis,throughcommitteeselection.Eachparticipantselectsanaspirationaltargetposition,fromalistofidentifiedcriticalpositionsintheagency.Participantsthencreateindividualdevelopmentplans,andreceivetargeteddevelopmentopportunities,specificallydesignedtoincreasetheirreadinessforthatposition.
DASandstateagenciescandrawontheabovepracticeswhendesigningandimplementingsuccessionplanningframeworksandprocesses.
Report Number 2017‐21 September 2017 Succession Planning Page 17
Recommendations: DAS Should Enhance Workforce Succession Planning Governance by Implementing a Strategic Framework and Addressing Challenges
WeofferthefollowingrecommendationstoassistDASwitheffortstoestablishandmaintainarobustsuccessionplanningframework.WerecommendthatCHRO:
1. Developastatewideworkforcesuccessionplanningstrategyandframework,inconsultationwithstateagenciesandstakeholders,thatprovidesconsistentguidanceanddirection,butalsoallowsagenciesflexibilitytomanagewithintheiruniquesituations.
2. Providespecificguidancetostateagenciesonsuccessionplanning,similartothetoolkitsprovidedbyotherstates,includingbutnotlimitedto:
a) definitionsofconceptsforstatewideuse,suchasdefiningworkforceplanning,successionplanningandretirementeligibility;
b) explanationofthekeysuccessionplanningprocessesthatshouldbeused;
c) toolsandtemplatestoinformsuccessionplanningsuchastoolstoidentifyandanalyzeskillsgapsoridentifytalentpools;
d) recommendedmetricstomeasureperformance;ande) recommendedapproachestomeetpublicsectorprinciplessuch
asguidanceondevelopingacommunicationplanforimprovedtransparency.
3. Developandimplementprocessestomonitor,assessandaddressstateagencyeffortsandstateworkforceriskstoensurecriticalpositonsarefilledwithqualifiedstaff.Thisshouldinclude:
a) regularlycollectinginformationfromstateagenciesabouttheiractionsandrisks;
b) assessingworkforcerisks,suchasretirementeligibility,fromastate‐levelperspective;and
c) regularlycommunicating(e.g.,bypublishingonline)workforceinformationtostateagenciesandstakeholders,suchastheLegislature,publicandlabororganizations.
4. Workwithagenciestodefineessentialdataneedsrelatedtosuccessionplanningandensureneedsaremet,includingworkforcedemographicsandretirementeligibilitydata.
5. WorkwithPERStoobtainretirementeligibilitydatainordertoimprovetheaccuracyofworkforceinformationusedforbroadsuccessionplanningstrategies.Addressanyconcernsaboutindividualprivacyandguardagainstanypotentialforagediscrimination.
Report Number 2017‐21 September 2017 Succession Planning Page 18
6. ProvideguidanceandtraininginthenewhumanresourceinformationsystemtostateHRemployeestoensureappropriatebusinessprocesschangesaremadetosupportandcapitalizeonthenewsystem,andtoensuredataintegrity.
7. ExpandoncurrentopportunitiesforstateagenciestosharepracticesandcoordinatewitheachotherandDAS.ThisshouldincludeincreasingoutreachtoagenciesnotrepresentedattheHRadvisorsmeeting,expandingopportunitiesattheHRdirectorsmeetingforagencycollaborationandsharing,andreachingouttoHRdirectorswhodonotregularlyattendtheHRdirectorsmeeting.
8. WorkwithstateagencyexecutivesandHRpersonneltoaddressbarriersinsuccessionplanningrelatedtostateHRpolicy,rules,orprocesses,bymakingadjustmentswhenappropriateandprovidingguidancetoagenciesonhowtoachieveobjectiveswithinexistingstatestructures.
Department of Administrative Services
Office of the Chief Operating Officer 155 Cottage Street NE
Salem, OR 97301 PHONE: 503-378-3104
FAX: 503-373-7643
Kate Brown, Governor August31,2017KipMemmott,DirectorSecretaryofState,AuditsDivision255CapitolSt.NE,Suite500Salem,OR97310DearMr.Memmott:ThisletterprovidesawrittenresponsetotheAuditsDivision’sfinaldraftauditreporttitledDepartmentofAdministrativeServices(DAS)ShouldEnhanceSuccessionPlanningtoAddressWorkforceRisksandChallenges.ThankyouforprovidingtheDASwiththeauditreportregardingsuccessionplanning.WeappreciatetheworkoftheAuditsDivisionstaffandarepleasedtohavetherecommendationsinthereport.Thisauditcomesduringatimeoftransformationalchangewithinhumanresourcesintheexecutivebranch.Asreferencedintheaudit,thecurrenthumanresourcesinformationsystemisover20yearsold,anddoesnotprovideuswithdatatoconductworkforceplanningactivities.In2014,abusinesscasewasdevelopedcollaborativelywithagenciestoprocureanewinformationsystemforworkforcemanagement.Afterseveralyearsofplanningandprocurementactivities,theOregonLegislaturefundedtherequestforahumanresourcesinformationsysteminJune,2017.TheStateofOregonselectedWorkdayasthenewhumanresourcesinformationsystem.ItisscheduledforfullimplementationinJuneof2018.Workdaywilleliminatemanual,paperdrivenprocesses,andprovidecapabilitytomanagetalentandsuccessionmanagementplansstatewide.EmployeedatashouldbeavailableforanalysisbySeptemberof2018.TheWorkdayapplicationissoftwareasaservice,andprovidesopportunitytoincorporatebestpracticesinworkforcedevelopmentfromboththeprivateandpublicsectors.TheimplementationofWorkdayiscriticaltoaddressingtherecommendationsinthisaudit.
Kip Memmott August 31, 2017 Page 2 of 7
Page 2 of 7
Oursuccessionplanningstrategyistargetedatidentifyingpotentialfutureleadersusingdevelopmentaltools,preparingourfutureworkforce,andestablishingandsupportingworkingenvironmentsthatfosterdiversityandinclusion.Overthepastthreeyears,wehaveenhancedworkforceplanningbyincorporatingnewapproachesandencouragingtheuseofcurrentactivitiessuchasjobrotationsforcareerdevelopment.Theseactivitiesareongoing,andprovidetheframeworkforasuccessionplanningstrategythatincludes:
• ContinuingtoenhanceandsupporttheLeadershipOregondevelopmentprogram.Theprogramhasbeendeliveredforover27yearswithover700attendees.LeadershipOregonhasbeenverysuccessfulindevelopingleaderswithinstategovernment.Manyofthegraduateshavefilledagencydirectorandotherkeyleadershiproles.
• DesigninganddeliveringtheManagementEducationSeriestoenhancethe
skillsofmanagerswithinstategovernment.Additionalcourseworkforthisseriesisinprogress.Over500managershavecompletedthetraining.
• Deliveryofanemergingmanagertrainingprogramforemployeesthatmay
beinterestedinmovingintomanagerialcareerpaths.
• Thedevelopmentofamentoringtoolkitforemergingmanagersandselectedmentors/mentees.ThenewWorkdaysystemincludesfunctionalityformakingtheconnectionbetweenmentorsandmentees.
• Theadoptionofcollaborativeenterprise-widevaluesandmanagerialcompetenciesthatwillbemappedtotheWorkdaysystemforemployeedevelopmentandperformancemanagement.
• Launchingofapilotinternshipprogramthispastsummerthatincluded60
internsfromcollegesanduniversities.Thefeedbackwasuniversallypositive,andprovidedanopportunitytoconnectwithapotentialnewworkforce.
• Finalizingandpilotingcurriculumforanexecutiveonboardingprogram.A
teamofseniorandnewagencyleaderswillcompletethisprojectinOctoberofthisyear.
Kip Memmott August 31, 2017 Page 3 of 7
Page 3 of 7
BelowyouwillfindDAS’responsetothespecificauditrecommendations.RECOMMENDATION1
Developastatewideworkforcesuccessionplanningstrategyandframework,inconsultationwithstateagenciesandstakeholders,thatprovidesconsistentguidanceanddirection,butalsoallowsagenciesflexibilitytomanagewithintheiruniquesituations.
AgreeorDisagreewithRecommendation
Targetdatetocompleteimplementation
activities(Generallyexpectedwithin6months)
Nameandphonenumberofspecificpointofcontactforimplementation
Agree
February2018
MadilynZike503-378-3020
NarrativeforRecommendation1Successionplanningcontinuestobeatopicduringbiweeklyhumanresource(HR)advisorsmeetingswithagencies.TheChiefHumanResourceOffice(CHRO)isreviewingthedocumentationsubmittedwiththeauditfindingstoincorporatepracticesasappropriate.RECOMMENDATION2
Providespecificguidancetostateagenciesonsuccessionplanning,similartothetoolkitsprovidedbyotherstates,includingbutnotlimitedto:a) definitionsofconceptsforstatewideuse,suchasdefiningworkforceplanning,
successionplanningandretirementeligibility;b) explanationofthekeysuccessionplanningprocessesthatshouldbeused;c) toolsandtemplatestoinformsuccessionplanningsuchastoolstoidentifyand
analyzeskillsgapsoridentifytalentpools;d) recommendedmetricstomeasureperformance;ande) recommendedapproachestomeetpublicsectorprinciplessuchasguidanceon
developingacommunicationplanforimprovedtransparency.
AgreeorDisagreewith
Recommendation
Targetdatetocompleteimplementationactivities(Generallyexpectedwithin6months)
Nameandphonenumberofspecificpointofcontactforimplementation
Agree Itemsa,andewillbecompletedbyFebruary1,2018.Itemsb,c,anddwillbeimplementedwith
WorkdayinSeptemberof2018.
MadilynZike503-378-3020
Kip Memmott August 31, 2017 Page 4 of 7
Page 4 of 7
NarrativeforRecommendation2Duetotheauditfindingsregardingreadinessrelatedtodefinitionsandcommunicationplans,wewillrevisitandprioritizeourworkinthoseareas.TrainingwillbeprovidedintheuseofWorkdaytomanagetalentandcompleteworkforceandsuccessionplanningtoolsandactivities.Workdayhasbuilt-intoolsthatallowthestatetoanalyzeskillsgaps,andcreatetalentpools.Thetalentpoolscanthenbeattachedtospecificpositionsforuseinsuccessionplanning.RECOMMENDATION3
Developandimplementprocessestomonitor,assessandaddressstateagencyeffortsandstateworkforceriskstoensurecriticalpositonsarefilledwithqualifiedstaff.Thisshouldinclude:
a) regularlycollectinginformationfromstateagenciesabouttheiractionsandrisks;
b) assessingworkforcerisks,suchasretirementeligibility,fromastate-levelperspective;and
c) regularlycommunicating(e.g.,bypublishingonline)workforceinformationtostateagenciesandstakeholders,suchasthelegislature,publicandlabororganizations.
AgreeorDisagreewithRecommendation
Targetdatetocompleteimplementation
activities(Generallyexpectedwithin6months)
Nameandphonenumberofspecificpointofcontactforimplementation
Agree TobecompletedduringtheWorkday
implementation.September2018.
MadilynZike503-378-3020
NarrativeforRecommendation3AccesstothePERSsystemdatathroughtheWorkdayapplicationwillprovidedashboardsformanagementandexecutivestaffregardingactionsandrisks.ThelegislativeandjudicialbranchesareparticipatingintheWorkdayapplicationusingWorkday’sreportingcapabilitiesandthisinformationwillbereadilyavailablethroughtheapplication.Unlikeinthepast,accesstothisinformationwillnotrequirecustomreportsorrequeststoDASfortheinformation.
Kip Memmott August 31, 2017 Page 5 of 7
Page 5 of 7
RECOMMENDATION4
Workwithagenciestodefineessentialdataneedsrelatedtosuccessionplanningandensureneedsaremet,includingworkforcedemographicsandretirementeligibilitydata.
Agree
ThisinformationwasincorporatedintothebusinessrequirementsforWorkdayandis
includedintheWorkdaysystem.
MadilynZike503-378-3020
NarrativeforRecommendation4AnintegrationtotheOregonPERSsystemisincludedintheWorkdayimplementation.Dataneeds,includingdemographicdatarequirements,werecollectedincollaborationwithstateagenciesduringthebusinesscasedevelopmentandwillbedeliveredintheWorkdaysystem.RECOMMENDATION5
WorkwithPERStoobtainretirementeligibilitydatainordertoimprovetheaccuracyofworkforceinformationusedforbroadsuccessionplanningstrategies.Addressanyconcernsaboutindividualprivacyandguardagainstanypotentialforagediscrimination.
AgreeorDisagreewithRecommendation
Targetdatetocompleteimplementation
activities(Generallyexpectedwithin6months)
Nameandphonenumberofspecificpointofcontactforimplementation
Agree
February2018.PERSdata-September
2018.
MadilynZike503-378-3020
NarrativeforRecommendation5AnintegrationtotheOregonPERSsystemisincludedintheWorkdayimplementation.Dataneeds,includingdemographicdatarequirements,werecollectedduringthebusinesscasedevelopment.PoliciesandpracticeguidelineswillbedevelopedtominimizeriskinpreparationforWorkdayimplementation.
Kip Memmott August 31, 2017 Page 6 of 7
Page 6 of 7
RECOMMENDATION6
Provide guidance and training in the newhuman resource information system tostateHR employees to ensure appropriate business process changes aremade tosupportandcapitalizeonthenewsystem,andtoensuredataintegrity.
AgreeorDisagreewithRecommendation
Targetdatetocompleteimplementation
activities(Generallyexpectedwithin6months)
Nameandphonenumberofspecificpointofcontactforimplementation
Agree
May2018.
MadilynZike503-378-3020
NarrativeforRecommendation6Communication,training,andorganizationalchangemanagementactivitiesareincludedandfundedintheWorkdayimplementationplan.TheWorkdayprojectteamhastrainersandchangemanagersdedicatedtotheprojecttoensureemployeesareproperlypreparedtomodifybusinessprocessesanduseWorkdaytoitsfullpotential.RECOMMENDATION7
ExpandoncurrentopportunitiesforstateagenciestosharepracticesandcoordinatewitheachotherandDAS.ThisshouldincludeincreasingoutreachtoagenciesnotrepresentedattheHRadvisorsmeeting,expandingopportunitiesattheHRdirectorsmeetingforagencycollaborationandsharing,andreachingouttoHRdirectorswhodonotregularlyattendtheHRdirectorsmeeting.
AgreeorDisagreewithRecommendation
Targetdatetocompleteimplementation
activities(Generallyexpectedwithin6months)
Nameandphonenumberofspecificpointofcontactforimplementation
Agree
Ongoing
MadilynZike503-378-3020
NarrativeforRecommendation7DASwillcontinuetomeetbiweeklywithHRadvisorsandbimonthlywithallHRmanagerswithastandingagendatopictodiscussbestpractices.Whileitisnotpossibletocontacteachagencythatdoesnotattendthescheduledmeetingindividually,DASwillincorporateasynopsisintheHRnewsletterasanothermethodofcommunicatingwithstaff.ApositionwithintheCHROtochampionsuccessionmanagementandfacilitatetheuseofbestpracticesisunder
Kip Memmott August 31, 2017 Page 7 of 7
Page 7 of 7
developmentwithatargetofhavingthepositionfilledbyJanuary2018.TheCHROalsoattendsallEnterpriseLeadershipTeammeetingsandallAgencyDirectorsmeetingstoshareinformationandpractices.RECOMMENDATION8
Work with state agency executives and HR personnel to address barriers insuccession planning related to state HR policy, rules, or processes, by makingadjustmentswhenappropriateandprovidingguidancetoagenciesonhowtoachieveobjectiveswithinexistingstatestructures.
AgreeorDisagreewithRecommendation
Targetdatetocompleteimplementation
activities(Generallyexpectedwithin6months)
Nameandphonenumberofspecificpointofcontactforimplementation
Agree
Ongoing
MadilynZike503-378-3020
NarrativeforRecommendation8TheactivitiesintheseareaswillcontinueasacorefunctionofworkforceplanningwithintheCHRO.Overthelastfewmonths,practiceshavebeenmodifiedsothatCHROpoliciesarereviewedbytheEnterpriseLeadershipTeamandallagencydirectorsforfeedback.Theyarealsocirculatedtoallhumanresourcesmanagersstatewideforcommentpriortofinalization.PleasecontactMadilynZikeat503-378-3020withanyquestions.
Sincerely,
KatyCobaChiefOperatingOfficerDASDirector
cc: