Principles for Reforming Government Operations In the 21st Century January 2001

The Situation

For most of the 20th century, federal civilian employees were concentrated in the competitive civil service, under Title 5 of the U.S. Code. That era has ended.

In May 1999, the U.S. Office of Personnel Management reported that only 49.92% of federal civilian employees were in the competitive service, and that 28.85% of the new hires entered the competitive service. More and more agencies are being exempted from Title 5 coverage. Furthermore, the federal workforce is decreasing -- by more than 375,000 in the last eight years -- while federal government services are increasingly being delivered by private and non-profit contractors and grantees, and state and local governments. One observer has reported that contract employees now outnumber federal employees 2 to 1.

Other changes, such as decentralizing personnel authority, deregulation, and the Government Performance and Results Act, among others, are having profound effects on the federal workforce. Reliance on technology is increasing. Basic changes are being made in the roles of managers and such central management functions as personnel, budget, procurement and auditing.

A new public service is emerging in which there will be fewer permanent federal employees, more temporary employees, and more functions performed by contractors and grantees. There will not be a uniform civil service, with a rigid job classification and pay system, or with detailed regulations and procedures issued by a central personnel office. There will no longer be a single employer -- individual agencies, rather than the federal government as a whole, are emerging as the employers of the future.

In the Winter 1999-2000 issue of The Public Manager journal, OPM Director Janice R. Lachance wrote:

"We already see the trends for the next millennium. And the theme is 'adapt or be pushed aside'. In the years ahead, organizations will no longer have a permanent workforce, or even a temporary workforce; instead they will have what I call a Asituational workforce. Needed work will be done by a blend of core employees in cross-functional teams and by CEC Reform Principles temporary employees, consultants, and contractors when necessary. Full-time, lifelong jobs and job descriptions are already disappearing...."

An added complication is the exodus of knowledge and experience from the federal service, and the difficulty of hiring entry level workers with the skills needed for the transformed workplace. About 50% of the federal government=s full-time civilian employees will be eligible for retirement in the next five years, including 65% of the Senior Executive Service. Educated and skilled workers entering the work force expect to change jobs frequently, are looking for learning opportunities and challenging work, and are receiving offers from private firms and non-profit organizations (many delivering public services) which the government can not match.

CEC supports changing the operation of the federal government to keep abreast of the changes occurring in the nation and the world in methods of work and management practices. The CEC wants to ensure, however, that changes in government operations result in improved service to citizens, and in better administration of the laws of the United States by those in federal service.

The Challenge

The U.S. federal government will continue to have a large role in the world and the nation, even after its functions are redefined and its size, scope and cost are reduced. New methods of work, technology and relationships with other levels of government and industry will continue to require a well-trained, well-managed workforce.

During this transformation of the federal government, the need is greater than ever for stability, continuity, competence and fairness in the administration of the laws and programs of the federal government.

Maintaining the confidence of the people requires that the unique nature of federal employment be defined and clearly expressed to guide federal managers and employees.

Common Values of Federal Service

The American people expect certain values to be reflected in the behavior of the employees of their government. CEC believes that those values should be defined clearly and incorporated into the variety of federal employment systems that are emerging.

CEC Reform Principles

The common values of federal service require that federal employees be:

• non-partisan, non-sectarian and non-discriminatory: a workforce that respects the rights of all citizens and provides equal treatment under law.


• effective and responsive: a workforce that performs with excellence the duties assigned, is responsive to the needs of citizens, and is creative and resourceful, but is bound
  by the laws, regulations and policies of the President, Congress and the courts.


• efficient and accountable for results: a workforce that seeks to administer the laws at the least cost, and is accountable for the results of its actions and for use of the powers and resources entrusted to it.


• representative and professional: a workforce that reflects the diversity of the American people, and is selected, promoted and terminated based on merit and the needs of
  the government.

Principles of Reform

If new employment systems are to incorporate and advance common values for all federal employees, then a set of clear and definite principles should be established to guide development of those systems. The President, Congress and other stakeholders should agree on the principles, and require them to be the basis for all new federal employment systems.

The CEC proposes the following core principles for reform of government operations:

1. Change should be synonymous with improvement.


2. The rationale for change should be clear, cogent and public.


3. All parties in the enterprise should be parties in its redesign.


4. Before changes are widely adopted, they should be tested and evaluated.


5. Changes in resources allocated to agencies and programs should be accompanied by appropriate changes in their functions, work methods and responsibilities.


6. Contracting out and devolution of functions to other levels of CEC Reform Principles government should be done only when:
   
   
   • inherently governmental or federal functions are not involved, or federal purposes are not jeopardized;
   
   
   • the cost savings or other public interests justify the effort;
   
   
   • the recipient has the demonstrated capacity to perform;
   
   
   • accountability for the use of federal powers and resources can be assured;
   
   
   • remaining federal responsibilities can be managed properly, and adequate oversight of the functions performed by contractors can be provided; and
   
   
   • appropriate and humane provisions are made for displaced federal employees and others affected.


7. When employment systems are changed within the government and its agencies, even those in pilot projects, they should:
   • be developed in consultation with all stakeholders, including organizations representing executives, managers and professionals, as well as unions and other employee groups;
   
   
   • adhere to the merit principles set forth in Title 5 of the U.S. Code in the selection, promotion, discipline and termination of federal employees, with equal pay for equal work, and assurance that such actions in the federal service are not only fair, but demonstrably fair;
   
   
   • address the changing needs of workers, and be designed to attract the most qualified people to public service;
   
   
   • provide for continuous improvement in work methods and cost efficiency as conditions change, through implementation of the Government Performance and Results Act, or other methods for planning work and holding employees accountable;
   
   
   • provide training and continuous development of the competencies needed in the new work environment;
   
   
   • assure that the common values are reflected in the actions of all federal employees, through the Administrative
     Procedures Act, or otherwise; and
   
   
   • provide oversight of all personnel practices by the Office of Personnel Management and the Merit System Protection Board, with strong enforcement authority.

CEC Principles for Reform

CEC believes that changes in the operation of the federal government are an appropriate response to the fundamental changes occurring in the nation and the world, that the citizens would be best served by preserving the basic values associated with the federal civil service, and that establishment of these or similar reform principles will enable the people in the federal service to preserve those values.

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