Federal Manager's Daily Report: Monday, December 20, 2004

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In This Week's Issue
1. NSPS 'Spiral One' Announced
2. Training a Major Element of Reform
3. Some Tinkering Envisioned, But Not a Lot
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1. NSPS Spiral One Announced
The Defense Department has announced which functions and 
which locations will be in the first phases of its new 
"national security personnel system," with an initial 
group of about 60,000 general schedule line employees and 
managers in the first phase, set to launch in summer 2005, 
followed by two more phases of roughly six months each 
bringing the total to 300,000.

In a letter to affected employees, Mary Lacey, the project 
director, promised that a variety of communications forums, 
learning events and training sessions on the specifics of 
NSPS will be provided prior to conversion. An employee 
handbook and tutorial is promised as well.

However, for now the system remains largely undefined, 
beyond broad principles announced earlier indicating that 
the system will feature pay banding, pay for performance, 
hiring and discipline flexibilities and revisions in 
appeals and labor relations rights. In a document 
accompanying the announcement, DoD acknowledged that the 
rules are not expected until sometime in the winter and 
will not be finalized until the spring. 

However, it said, "the announcement at this time allows the 
leadership of those affected organizations to posture 
themselves and look ahead as much in advance as possible to 
help prepare Spiral One implementation."

Spiral one involves personnel and appeals rights. Changes 
in labor relations policies are to be implemented 
department-wide with no phase-in, potentially starting in 
the summer.

2. Training a Major Element of Reform
Defense officials, acknowledging that the NSPS represents 
a culture change in the way DoD operates, say they 
recognize the importance of training and that they are 
working on development of the training. 

Says a DoD document: "Two types of training will be necessary: 
Training to implement the system operationally, and training 
in what we call 'soft skills.' These 'soft skills' include 
interpersonal communication, team building, and conflict 
management to help facilitate interaction between employee 
and supervisor, which will be just as critical to the 
program's overall success as the nuts and bolts of the 
system. We will ensure every employee and supervisor get 
the proper training to make this work. What we hope to see 
is increased communication between every supervisor and 
employee as they discuss and jointly develop performance 
objectives tied to the overall organization's mission. 
This is essential if this new system is to be successful."

It continued: "The NSPS performance management system is 
designed to recognize and reward the performance and 
contributions of the DoD civilian workforce, and supervisors 
are integral to the overall success of NSPS. 
A pay-for-performance system mandates frequent and honest 
communication and performance feedback among managers, 
supervisors, and employees. NSPS will not be successful 
if managers and supervisors cannot effectively communicate 
expectations. Managers and supervisors are key to 
successful NSPS implementation."

3. Some Tinkering Envisioned, But Not a Lot
DoD says that there "may be some modest changes that will 
be necessary" as the NSPS system matures. Once it reaches 
the 300,000-employee figure, the Pentagon will have to 
certify that the system meets certain standards set out in 
the law creating NSPS before it will be allowed to move 
on to "spiral two"--most of the rest of the department, 
including wage grade employees--and a potential "spiral 
three"--DoD laboratories already operating under special 
personnel authorities.

"Our experience with China Lake, our first demonstration 
project, and the subsequent acquisition and laboratory 
demonstration projects, has given us a wealth of valuable 
experience to rely upon in rolling out NSPS, and we expect 
that any system changes will be modest in scope. For 
instance, we may identify better ways for training the 
workforce and may decide to modify training plans," the 
DoD document says.

However, many in employee organizations and on Capitol 
Hill expect much more significant changes than what is on 
the order of tinkering with training plans. NSPS will 
involve significant changes in the way jobs are classified 
and employees are paid, they note, and likely will raise 
issues regarding fairness and equal application of ratings. 
A series of congressional hearings is expected, potentially 
beginning soon after DoD publishes the proposed rules.

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