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SPRING 2002 PROVIDING CUTTING-EDGE KNOWLEDGE TO GOVERNMENT LEADERS The Business of Government 1 FROM THE EDITOR’S KEYBOARD 2 Forum Reflections on September 11th and the Challenge of Homeland Security 27 Human Capital The Human Capital Challenge The Six Key Human Capital Miguel Torrado Amy Comstock Glenda Tate Questions Facing Government Key Players: The Leaders Key Players: The Change Agents Managing for the Future: Human Capital Strategies at the United States Postal Service Who Says It Can’t Be Done? Recruiting the Next Generation of Public Servants Competing for Talent: Special Hiring Authorities for Federal Agencies Donna Beecher Beth Slavet Rear Adm. Patrick Stillman Achieving Accountability for Workforce Diversity Programs Rethinking Careers and Public Service: A Conversation with Charles Handy 64 Profiles in Leadership Karen Cleary Alderman Mayi Canales Joseph Cipriano John M. Dalrymple Lt. Gen. Michael Hayden Kay Coles James Mayi Canales Lieutenant General Michael Hayden R. Schuyler Lesher David Mader Rear Adm. Patrick Stillman Angela Styles 100 Research Abstracts endowment.pwcglobal.com [ TABLE OF CONTENTS ] FROM THE EDITOR’S KEYBOARD 1 Research Abstracts 100 E-Government Series Forum 2 Internet Voting: Bringing Elections to the Desktop Reflections on September 11th and the Challenge of Leveraging Technology in the Service of Diplomacy: Homeland Security Innovation in the Department of State Human Capital 27 State Web Portals: Delivering and Financing E-Service The Human Capital Challenge Human Capital Series The Six Key Human Capital Questions Facing Government Organizations Growing Leaders: Best Practices and Principles in the Public Service Key Players: The Leaders Key Players: The Change Agents New Ways to Manage Series Managing for the Future: Human Capital Strategies at the Contracting for the 21st Century: A Partnership Model United States Postal Service Franchise Funds in the Federal Government: Ending the Who Says It Can’t Be Done? Recruiting the Next Monopoly in Service Provision Generation of Public Servants Government Management of Information Mega- Competing for Talent: Special Hiring Authorities for Federal Technology: Lessons from the Internal Revenue Service’s Agencies Tax Systems Modernization Achieving Accountability for Workforce Diversity Programs Leveraging Networks to Meet National Goals: FEMA and Rethinking Careers and Public Service: A Conversation with the Safe Construction Networks Charles Handy Managing “Big Science”: A Case Study of the Human Genome Project Profiles in Leadership 64 Understanding Innovation: What Inspires It? What Makes It Successful? Karen Cleary Alderman, Executive Director, Joint Financial Management Improvement Project A Vision of the Government as a World-Class Buyer: Major Procurement Issues for the Coming Decade Mayi Canales, Deputy Chief Information Officer and Director of Security, Office of the Chief Information Officer, Transforming Organizations Series U.S. Department of the Treasury Managing Across Boundaries: A Case Study of Dr. Helene Joseph Cipriano, Program Executive Officer for Information Gayle and the AIDS Epidemic Technology, Department of the Navy, U.S. Department of Defense John M. Dalrymple, Commissioner, Wage and Investment Division, Internal Revenue Service Lieutenant General Michael Hayden, Director, National Security Agency R. Schuyler Lesher, Deputy Chief Financial Officer and Director, Office of Financial Management, Department of the Interior David Mader, Assistant Deputy Commissioner, Internal Revenue Service Rear Admiral Patrick Stillman, Program Executive Officer of the Deepwater Program, U.S. Coast Guard Angela Styles, Administrator for Federal Procurement Policy, Office of Federal Procurement Policy, Office of Management and Budget The Business of Government is published by PricewaterhouseCoopers LLP, 1616 North Fort Myer Drive; Arlington, VA; 22209. For subscription information, call (703) 741-1077. World Wide Web page: www.endowment.pwcglobal.com. Copyright 2002 PricewaterhouseCoopers LLP. All rights reserved. No part of this publication may be reproduced in any form, by microfilm, xerography, or otherwise, without the written permission of the copyright owner. This publication is designed to provide accurate information about its subject matter, but is distributed with the understanding that the articles do not constitute legal, accounting, or other professional advice. [ FROM THE EDITOR’S KEYBOARD ] By Ian Littman This issue of The Business of think differently about this issue than we have in the past. Government—largely devoted to Today’s government executives are responsible for multi-million- the subject of human capital— dollar, and in many cases multi-billion-dollar, annual budgets comes at a very opportune time. for which they manage hundreds and even thousands of staff, There continues to be a growing procure the full range of goods and services, and regularly sentiment that the time is now negotiate significant and complicated deals with their private ripe to re-examine our civil sector counterparts. service system and to make major reforms in the system. Much of government today is no longer about making or inter- In February, the Brookings preting public policy, but rather is about operating large enter- Institution announced that it prises within the context of existing public policy. I believe there would convene a new National Commission on the Public is critical need for government to attract more graduates of busi- Service, chaired by former Federal Reserve Board Chairman Paul ness schools and individuals who have had “real life” experience A. Volcker. The report of the first Volcker Commission was issued in the private sector making business-based decisions. Many of in 1990 and contained a series of recommendations to improve today’s government managers have not been trained or devel- and reform public service. oped to run large-scale enterprises that are nimble and customer- oriented, and operate in a cost-effective manner. The American The creation of the Volcker Commission II is only the latest public today expects government to minimize waste and to be example of an increased interest on the important topic of human responsive to customers. capital. Last year, the Partnership for Public Service was created to work toward revitalizing the public service by restoring both The government of the future is likely to reflect two distinct leader- public confidence in government and the prestige of public ser- ship groups. One group is likely to be composed of public policy/ vice. Since its creation, the Endowment has worked closely with public administration trained individuals who are subject-matter the Partnership, and our two organizations recently convened experts. These individuals will continue to help guide their a two-day retreat on “Human Capital: Mapping a Research organizations in policy development and policy implementation. Agenda,” the results of which are presented in this issue. The second, perhaps larger, leadership group is likely to include individuals with strong business management backgrounds. This The Volcker Commission II and the Partnership for Public Service second group will be responsible for managing government’s join the “old” kids on the block who continue to work diligently resources and operating large public enterprises. on human capital issues: The National Academy on Public Administration and its Center for Human Resources Manage- In examining the future of government and civil service, we ment, the Council for Excellence in Government, the John should acknowledge this forthcoming need for business talent F. Kennedy School at Harvard University, and the Brooking and start developing new approaches that will attract those Institution’s Presidential Appointee Initiative. with business experience. We need to attract business-oriented individuals who might be interested in second careers in govern- On the government side, the Bush administration has made the ment. We also need to encourage exchange programs between “Strategic Management of Human Capital” one of the five gov- the public and private sectors to foster cross-sector understanding ernment-wide initiatives on the President’s Management Agenda. and appreciation. Office of Personnel Management Director Kay Coles James, fea- tured in this issue, is leading this initiative for the administration. In developing the forthcoming agenda for civil service reform, In 2001, the General Accounting Office placed human capital we need to keep both groups of future government leaders in on its list of “major management challenges and program risks” mind. We can no longer simply focus on attracting the public facing government. Since his appointment as comptroller gener- policy school graduate to government. We need to attract busi- al, David Walker has consistently emphasized the importance of ness leaders to government as well. Given recent events and human capital. On Capitol Hill, Senators Joe Lieberman, Fred increased interest in public service, the time might now be ripe Thompson, Richard Durbin, and George Voinovich are all now to attract this new breed of government executive. working on various aspects of the human capital issue. The topic of recruiting and developing future government leaders Ian Littman is a partner at PricewaterhouseCoopers and co-chair of the is clearly on the reform agenda. But in the future, we need to Endowment’s Advisory Board. His e-mail: [email protected]. SPRING 2002 The Business of Government