part6-3

6.251.1 
Provisions, Authorities, Requirements, and Processes

6.251.1.1 
(07-01-2003)
Overview

  1. IRM 6.251.1 provides Division Commissioners and Functional Chiefs and
    their staffs with information on Strategic Workforce Planning for Human Resource
    Management within the Internal Revenue Service (IRS).

  2. IRM 6.251.1 provides guidance and standards for establishing workforce
    planning in the Service’s Business Units and describes how such planning
    fits into the Strategic Planning, Budgeting and Performance Management (SPB&PM)
    Process.

6.251.1.2 
(07-01-2003)
Definitions and Acronyms

  1. A list of definitions and a list of acronyms are provided as exhibits.
    See Exhibits 6.251.1-1 and

    6.251.1-2.

6.251.1.3 
(07-01-2003)
Responsibilities

  1. Workforce Planning Council (WPC) (or applicable decision making body)
    will:

    1. Develop planning guidance.

    2. Identify strategic workforce issues.

    3. Develop future year Servicewide staffing plan, estimating internal and
      external hiring mix, cross divisional and cross occupational interactions.

    4. Develop future year training requirements.

    5. Resolve issues related to both financial and human resource constraints
      in the SPB&PM process.

  2. Strategic Human Resources (SHR), Workforce Planning (WP) will:

    1. Perform workforce analysis to include supply, demand and gap analysis.

    2. Publish the Workforce Analysis Report and the IRS Workforce Plan.

    3. Manage the Integrated Workforce Planning System (IWPS) and produce the
      Five-Year Staffing Plan.

    4. Monitor Servicewide hiring during the performance year and provide statistical
      analysis and reporting.

    5. Conduct workforce planning process improvement analysis.

    6. Coordinate with WPC (or applicable decision making body), Divisions, and
      the Chief Financial Officer throughout the workforce planning process.

    7. Perform resource analysis studies, as requested.

  3. Divisions will:

    1. Translate program decisions made during the SPB&PM process from Full-Time-Equivalent
      (FTE) dollars to mission critical position requirements.

    2. Incorporate the IRS Workforce Plan into Division and Functional Unit Business
      Plans.

    3. Conduct performance monitoring and reporting of Business Plan execution,
      which includes aspects of the IRS Workforce Plan.

    4. Develop, maintain and update a Division Annual Hiring Plan, and provide
      status updates to SHR:WP.

    5. Maintain and update the Authorized Staffing and Charting (ASC) and HR
      Connect (as applicable).

    6. Coordinate with SHR:WP and Chief Financial Officer throughout the Workforce
      Planning process.

  4. Chief Financial Officer: Corporate Planning & Performance and Corporate
    Budget (CFO:CPP & CB) will support SHR:WP and Divisions with financial
    and other information throughout the Workforce Planning process.

  5. Office of Research, Analysis and Statistics will provide access to business
    trends and analysis information/reports and render assistance, as required,
    in interpreting the information.

6.251.1.4 
(07-01-2003)
Purpose of Strategic Workforce Planning

  1. Workforce planning contributes to the achievement of corporate program
    objectives by planning and forecasting the appropriate workforce structure
    needed to support strategic plans and budget decisions.

  2. Workforce planning relies upon the integration of other planning processes
    and organizational components. In particular, strategic planning, budgeting,
    and human resources organization are key components in workforce planning.

  3. The IRS Strategic Plan required by the Government Performance and Results
    Act (GPRA) of 1993 identifies organizational direction and articulates measurable
    program goals and objectives. The budget process provides information on the
    allocated funding to achieve objectives. The human resources organization
    provides tools for identifying skills/competencies needed in the workforce,
    recruiting, career development, and training, in order to build a future workforce
    that accomplishes the IRS mission and objectives. Finally the performance
    management system documents how successful the organization was in achieving
    program goals and objectives.

6.251.1.5 
(07-01-2003)
Strategic Workforce Planning Regulatory Authority and References

  1. GPRA of 1993. This Act seeks to shift the focus of government decision-making
    and accountability away from the activities undertaken to the results achieved
    from those activities. Under the Act, agencies are required to develop multi-year
    strategic plans, annual performance plans, and annual performance reports.

  2. “Strategic Management of Human Capital”
    was one
    of the fourteen areas identified for improvement in the President’s
    Management Agenda (Fiscal Year 2002). The agenda specifically directs agencies
    to link human capital strategies to organizational mission, vision, core values,
    goals and objectives and to use strategic workforce planning to develop a
    high-performing workforce. In support of the President’s Management
    Agenda the Office of Management and Budget (OMB) issued the
    ”
    Standards for Success”
    which incorporates elements of the General Accounting
    Office’s (GAO)
    “Critical Success Factors,”
    as well
    as the accountability requirement of Civil Service Rule X from Executive Order
    13197.

  3. Human Resource Management Council Memorandum for Heads of Departments
    and Independent Agencies (Transmittal MSG-041a), May 8, 2001,
    ”
    Workforce Planning Restructuring.”
    This memorandum instructs Executive
    agencies and departments to submit workforce analysis to the Office of Management
    and Budget (OMB) by June 29, 2001, as the initial step in the implementation
    of the President’s initiative to have agencies restructure their workforces
    to streamline organizations. The memorandum also provides preliminary guidance
    on the development of agency-specific restructuring plans in the context of
    the FY 2003 budget request and annual performance plan.

  4. Human Resource Management Council Memorandum for Heads of Departments
    and Independent Agencies, March 9, 2001,
    “Performance Goals
    and Management Initiatives for the FY 2002 Budget.”
    This memorandum
    provides guidance on the development of agency Performance Plans, including
    making greater use of performance-based contracts, expanding the application
    of on-line procurement, and expanding A-76 competitions.

6.251.1.6 
(07-01-2003)
Benefits of Strategic Workforce Planning

  1. Workforce planning provides senior leaders with a strategic basis for
    making human resource decisions. It allows managers to anticipate change rather
    than react to events, as well as to provide strategic methods for addressing
    present and future workforce issues. Furthermore, workforce planning:

    1. Provides more effective human resource management through accurate, efficient
      alignment of the workforce with strategic objectives and performance measures.

    2. Links expenditures to organization’s long-term goals and objectives.

    3. Ensures replacement availability to fill critical vacancies, especially
      those that require lengthy developmental training.

    4. Provides realistic staffing projections for budget purposes.

    5. Links recruitment, development and training decisions to organizational
      goals.

    6. Provides a systematic process to address issues that drive workforce changes.

6.251.1.7 
(07-01-2003)
Strategic Workforce Planning Model Overview

  1. IRS uses the four-phased Workforce Planning Model (
    See Exhibit 6.251.1-3).     The planning model is designed to be a continuous
    and systematic process that is linked to the SPB&PM process. See Exhibit 6.251.1-4 for the linkage of the two
    systems over a multi-year timeline. Exhibit 6.251.1-5 summarizes major deliverables
    in the workforce planning process.

  2. The planning process takes into account that in any one calendar year
    there are three separate budget planning and execution scenarios occurring
    ( See Exhibit 6.251.1-4). For instance,
    in calendar year 2003 the organization is conducting long range planning for
    FY 2005 and beyond, short range planning for FY 2004 execution, and monitoring
    of FY 2003 current year performance.

  3. A detailed description outlining the planning guidance including the
    process flow, deliverables, start and finish dates, linkages to the SPB&PM
    process, and roles and responsibilities are provided in subsections 6.251.1.8
    through 6.251.1.12.

6.251.1.8 
(07-01-2003)
Agency Strategic Direction – Phase I Process

  1. The following figure shows the Agency Strategic Direction – Phase I
    Process.

    Figure 6.251.1-1

    This image is too large to be displayed in the current screen.

    Please click the link to view the image.

6.251.1.8.1 
(07-01-2003)
Phase I Overview

  1. The first step in the Workforce Planning process is to capture and integrate
    the strategic direction, which is set by the Senior Leadership Team (SLT)
    in accordance with GPRA requirements.

  2. IRS’s Strategic Plan charts the future with broad mission-related
    targets and milestones. The vision, mission, and measurable goals and objectives
    drive the identification of what type of work needs to be accomplished. This
    plan is updated every three years.

  3. The yearly SPB&PM process provides linkage and yearly programming
    of funds and resources to accomplish IRS goals and objectives.

6.251.1.8.2 
(07-01-2003)
Phase I – Roles and Responsibilities

  1. Strategic Human Resources, Workforce Planning (SHR:WP) will:

    1. Provide CFO:CPP with Workforce Planning instructions for incorporation
      into overall SPB&PM guidance instructions.

    2. Coordinate with Divisions during the development and consolidation of
      Human Capital components of the Strategic Assessment Report (SAR).

    3. Consolidate SHR Human Capital Drivers of Program Resources (DRIPs), which
      have Servicewide impact.

    4. Develop and publish the Workforce Analysis Report and IRS Workforce Plan
      for SLT, WPC, and Divisions for use during the SPB&PM cycle.

    5. Develop/coordinate with Divisions and maintain the Servicewide Annual
      Hiring Plan (AHP).

    6. Monitor the effectiveness of the Workforce Planning Process and make necessary
      changes.

6.251.1.8.3 
(07-01-2003)
Phase I – Process

  1. This subsection highlights those areas where Workforce Planning is integrated
    into SPB&PM. It does not replace guidance provided in the SPB&PM Guidebook.

  2. In early December, SHR:WP provides the SLT, WPC (or applicable decision
    making body), and Divisions a Workforce Analysis Report as described in Workforce
    Analysis-Phase IIA Process (See IRM 6.251.1.9). Divisions use this report
    during development of their SARs.

  3. Following issuance of Strategic Assessment and DRIP instructions SHR:WP
    meets with Division’s human resource managers and planners. The purpose
    of the meetings is to coordinate the development and consolidation of human
    capital components of the SAR.

  4. Following the Strategic Assessment Phase SHR:WP develops and publishes
    the IRS Workforce Plan. Applicable actions identified in the Workforce Plan
    are then incorporated into Division Business Plans (Refer to Workforce Analysis
    – Phase IIB Process – IRM 6.251.1.10, and Implement Workforce Plans Process
    – IRM 6.251.1.11).

  5. Business plans are communicated, implemented, and monitored through
    the Performance Management aspect of the SPB&PM process. SHR:WP coordinates
    and maintains the Servicewide AHP and provides periodic status reports (Refer
    to Monitor, Evaluate and Revise Process – IRM 6.251.1.12).

  6. The overall Workforce Planning process is evaluated annually to determine
    how well its component parts are functioning and where adjustments are needed.
    Necessary revisions to the process are made prior to the continuation of the
    cycle (Refer to Monitor, Evaluate and Revise Process – IRM 6.251.1.12).

6.251.1.9 
(07-01-2003)
Workforce Analysis – Phase IIA

  1. The following figure shows Workforce Analysis – Phase IIA Process.

    Figure 6.251.1-2

    This image is too large to be displayed in the current screen.

    Please click the link to view the image.

6.251.1.9.1 
(07-01-2003)
Phase IIA – Overview

  1. Phase IIA of Workforce Analysis supports Strategic Assessment within
    the SPB&PM process. The workforce analysis report provides Divisions and
    the SLT with an independent analysis of the labor market, major long-term
    business trends, and a profile of the current workforce.

6.251.1.9.2 
(07-01-2003)
Phase IIA – Roles and Responsibilities

  1. WPC (or applicable decision making body) will review and provide feedback
    and direction on the IRS Workforce Analysis Report.

  2. SHR:WP will:

    1. Conduct workforce analysis (demand, supply and gap analysis) and develop
      a report.

    2. Coordinate the review and publication of the Workforce Analysis Report.

    3. Coordinate with Divisions, as required, during workforce analysis.

    4. Develop a Five-Year Staffing Plan based on results of workforce analysis.

  3. Divisions (Planners/ Human Resources (HR)/Budget Experts) will:

    1. Support SHR:WP with staffing information and strategy development throughout
      the workforce analysis phase.

    2. Maintain and update, the Authorized Staffing and Charting (ASC)/HR Connect
      system when changes to staffing occur [as specified by the Commissioner (or
      applicable decision making body)].

    3. Review and provide feedback on the Five-Year Staffing Plan.

  4. Office of Research, Analysis and Statistics will provide access to business
    trends and analysis information/reports and assistance, as required, in interpreting
    the information.

6.251.1.9.3 
(07-01-2003)
Phase IIA Process – Demand Analysis

  1. SHR:WP conducts a Demand Analysis by scanning the external environment
    for trends, issues and problems that may impact IRS and through examining
    internal business trends that may provide additional insight into workforce
    changes.

  2. SHR:WP performs an environmental scan by researching reports and other
    information obtained from various sources such as the Bureau of Economic Analysis,
    Bureau of Labor Statistics, and various business outcome measures. Information
    gathered is analyzed for applicability to the IRS labor market.

  3. Demand analysis also includes the review of the IRS business environment.
    Trends are reviewed by SHR:WP from information obtained from the IRS Office
    of Research Analysis and Statistics, Office of Program Evaluation & Risk
    Assessment (OPERA), and Divisions. Analysis encompasses:

    1. Prior year DRIPs.

    2. Major long-term trends.

    3. Impacts of planned and completed organizational studies (i.e., analyst
      study, planned commercial activities studies, productivity, efficiency, and
      effectiveness studies/analysis).

    4. Outcomes approved by the Executive Steering Committee for Organizational
      Change (ESCOC) (or applicable decision making body).

  4. The completed demand analysis results in a forecast of the type of skills,
    quantity, and location of the workforce needed in the organization over the
    next three to five years.

6.251.1.9.4 
(07-01-2003)
Phase IIA Process – Supply Analysis

  1. Supply Analysis focuses on analyzing IRS demographics and identifying
    IRS employment trends. This analysis provides both descriptive and forecasting
    models which describe how turnover will affect the workforce in the absence
    of management action.

  2. SHR:WP obtains raw data from Treasury Integrated Management Information
    System (TIMIS), the ACS/HR Connect system, Authorized Staffing Pattern (ASP),
    or other special studies. Analysis of the data includes:

    1. Distribution of employees by organizational unit, type of appointment,
      job series, and grade level.

    2. Projected retirement eligibility/trends/rates.

    3. Projected attrition eligibility/trends/rates for other than retirement.

    4. Profile of management control positions.

    5. Employment trends for critical or hard-to-fill positions.

    6. Turnover rates (transfers to other agencies) and movement between IRS
      Divisions and between positions series.

  3. The completed supply analysis results in the projection of the employee
    population over the next three to five years if nothing were done to replace
    attrition.

6.251.1.9.5 
(07-01-2003)
Phase IIA Process – Gap Analysis

  1. Once supply and demand analysis is completed, a gap analysis is performed.
    SHR:WP analyses of the differences between the workforce supply projection
    to the workforce demand forecast.

  2. The result is the identification of future gaps and surpluses within
    the IRS with particular emphasis on gaps in critical skills and in the identification
    of
    “at risk”
    occupations.

  3. SHR:WP, with input from Divisions, will addresses the following types
    of questions:

    1. What will be the potential sources of the
      “new”
      staff
      that will be required?

    2. What attrition and retirement can be expected?

    3. Will attrition make it easier or harder to achieve workforce objectives?

    4. What kinds of positions will need to be filled?

    5. How can training/re-training help?

    6. What are the succession planning implications?

    7. How can contractors help? Do on-board contractors have the needed capabilities
      or would new capabilities need to be procured?

    8. Are new hires going to be required, and if so are they going to replace
      current employees or go into new types of jobs?

    9. What actions need to be taken to
      “place”
      surplus staff?

    10. What is the impact of budget decisions on mission critical series?

6.251.1.9.6 
(07-01-2003)
Phase IIA Process – Strategy Development

  1. SHR:WP develops potential strategies that resolve issues surfaced during
    the analysis of demand and supply data (gaps, surpluses, critical skills issues,
    and
    “at risk”
    occupations). During strategy development,
    SHR:WP will coordinate with Divisions, SHR: Career Management & Recruitment
    (CM&R) and SHR:Personnel Policy, as required.

  2. Such strategies might include recruitment, staff retraining, succession
    planning, contract work, job classification, reorganization, policy decisions,
    hiring actions, etc.

6.251.1.9.7 
(07-01-2003)
Phase IIA Process – Update IWPS

  1. Using the information obtained from the supply and demand profiles,
    SHR:WP updates the IWPS. The following information is incorporated into the
    database:

    1. On-board counts

    2. Funded but unfilled vacancies (from prior year)

    3. Funded DRIPs from current planning year

    4. Retirement projections

    5. Workforce age

    6. Non-retirement separation projections

    7. Sourcing sequence ratios (Occupational Migration)

    8. Policy options, DRIPs, and program adjustments

    9. Yearly staffing requirements by Division and series/grade

  2. The Five-Year Staffing Plan produced by the IWPS is included in the
    Workforce Analysis Report.

6.251.1.9.8 
(07-01-2003)
Phase IIA Process – Workforce Analysis Report

  1. At the completion of the Workforce Analysis phase, SHR:WP develops and
    coordinates a report for review by the WPC (or applicable decision making
    body), Divisions and all key stakeholders (e.g. SHR: CM&R) in early December
    of each year. SHR:WP incorporates review comments and finalizes the report
    by the end of February of each year. The report summarizes gaps and potential
    impacts to human capital. Recommendations and potential strategies are provided
    along with a Five-Year Staffing Plan. This information is used by Divisions
    to support development of their SPB&PM deliverables.

6.251.1.10 
(07-01-2003)
Workforce Analysis – Phase IIB

  1. The following figure shows Workforce Analysis – Phase IIB Process.

    Figure 6.251.1-3

    This image is too large to be displayed in the current screen.

    Please click the link to view the image.

6.251.1.10.1 
(07-01-2003)
Phase IIB – Overview

  1. Phase IIB of Workforce Analysis summarizes and converts program decisions
    made during the SPB&PM process from Full-Time-Equivalent (FTE) dollars
    to position information. The Five-Year Staffing Plan is revised and a comprehensive
    Workforce Plan published.

6.251.1.10.2 
(07-01-2003)
Phase IIB – Roles and Responsibilities

  1. WPC (or applicable decision making body) will: review and provide feedback
    and direction on the IRS Workforce Plan.

  2. SHR:WP will:

    1. Submit information requests and/or schedule and coordinate meetings with
      the Divisions and CFO:CPP in order to translate program decisions into positions.

    2. Update the Five-Year Staffing Plan to reflect program decisions.

    3. Publish the Workforce Plan.

  3. Divisions (Planners/HR/Budget Experts) will:

    1. Translate program decisions made during the SPB&PM process from FTE
      dollars to mission critical position requirements, with assistance from CFO:CPP
      and SHR:WP, as required.

    2. Communicate position information to SHR:WP.

    3. Review and provide feedback on the Five-Year Staffing Plan.

    4. Maintain and update, the Authorized Staffing and Charting (ASC)/HR Connect
      system to reflect positions and staffing changes.

    5. Incorporate the Workforce Plan actions into Business Plans.

  4. CFO:CPP and CB will:

    1. Provide SHR:WP an electronic copy of the final program decisions resulting
      from the Strategic Assessment Process.

    2. Support Divisions and/or SHR:WP with financial information, as required,
      during the translation of FTE into positions.

6.251.1.10.3 
(07-01-2003)
Phase IIB Process

  1. SHR:WP obtains from CFO:CPP a copy of final program decisions resulting
    from the Strategic Assessment process.

  2. SHR:WP submits information and/or schedules and coordinates meetings
    with the Divisions and CFO:CPP/CB to translate the program decisions (i.e.
    DRIPs) into mission critical position requirements. Specifically, the following
    information is identified:

    1. Prior year funded but unfilled positions.

    2. Number of positions required for each DRIP.

    3. The occupational series, grade, and location of each position.

      Note:

      Identification of occupational series and grades are used in planning documents
      and are not to be construed as classification approval. Employee mix and position
      type is established through sound position management policies and principals.

  3. The above information is updated in the IWPS and a revised Five-Year
    Staffing Plan is generated.

  4. SHR:WP develops the IRS Workforce Plan and distributes it to the SLT,
    WPC (or applicable decision making body), Divisions, and key stakeholders
    (e.g. SHR: CM&R) in June of each year. The report will incorporate components
    of the Workforce Analysis Report (published in December of each year) and
    the SHR Strategic Assessment Report. It also includes final program decisions,
    an updated Five-Year Staffing Plan, and a plan outlining specific actions
    necessary in order to achieve IRS’s human capital goals and objectives.
    The Workforce Plan is used by Divisions to develop tactical action plans to
    support implementation of program decisions.

6.251.1.11 
(07-01-2003)
Implement Workforce Plan – Phase III

  1. The following figure shows the Implement Workforce Plan – Phase III
    Process.

    Figure 6.251.1-4

    This image is too large to be displayed in the current screen.

    Please click the link to view the image.

6.251.1.11.1 
(07-01-2003)
Phase III – Overview

  1. Incorporating the IRS Workforce Plan occurs during the Business and
    Resource Planning Phase of the SPB&PM process. During this phase each
    Division translates the Workforce Plan and Strategy and Program Plans (SPP)
    into tactical actions to accomplish its goals.

6.251.1.11.2 
(07-01-2003)
Phase III – Roles and Responsibilities

  1. Divisions (Commissioner, Director, Chief, Planners/HR/Budget Experts)
    will:

    1. Develop a Division and Functional Unit Business Plans, which incorporate
      the IRS Workforce Plan and the SPP decisions.

    2. Develop Division Annual Hiring Plan (AHP) for FTP positions (i.e., mission
      critical and management-controlled positions). Provide a copy of the hiring
      plan to SHR:WP, once finalized.

    3. Collaborate with representatives at all levels to ensure organizational
      buy in and alignment with IRS strategic goals and objectives.

    4. Begin implementation of the Business Plan at the beginning of the new
      fiscal year.

6.251.1.11.3 
(07-01-2003)
Phase III – Implement Workforce Plan Process

  1. Each Division collaboratively works with its organizational components
    to translate its SPP and the IRS Workforce Plan into a Business Plan that
    articulates what tactical actions, applied resources, and performance milestones
    and measures will be implemented to drive the day-to-day operations. Detailed
    guidance in the development of the Business Plan is provided in the SPB&PM
    Guidebook. Although the plans vary by function, they typically include the
    following elements:

    1. A description of the overall goals.

    2. Specific strategies and operational priorities.

    3. Actions to accomplish operational priorities and improvement projects.

    4. Milestones, including measures, workload indicators, diagnostic indicators,
      and targets.

    5. Responsible organization component(s).

  2. Each Division prepares an AHP for FTP mission critical positions. The
    hiring plan identifies by position title/series, and grade level the following:

    • Quantity of FTP

    • Planned month of hire

    • Quantity of internal or external hire

  3. During the development of the Division Business Plan the Division Commissioner,
    Director, Chief and applicable direct reports meet periodically to ensure
    consistent alignment, thoroughness, and prioritization of the organizational
    component plans with the consolidated Division Business Plan.

  4. Once the Division Business Plan is finalized it is communicated throughout
    the applicable organization. Also, a copy of the Division Annual Hiring Plan
    is provided the SHR:WP for the purpose of reviewing progress of IRS hiring
    against what was originally planned and budgeted.

  5. Implementation of the Division Business Plan begins in the upcoming
    fiscal year. Progress is monitored through the Business Performance Review
    System (BPRS).

6.251.1.12 
(07-01-2003)
Monitor, Evaluate, and Revise – Phase IV

  1. The following figure shows the Monitor, Evaluate, and Revise – Phase
    IV Process.

    Figure 6.251.1-5

    This image is too large to be displayed in the current screen.

    Please click the link to view the image.

6.251.1.12.1 
(07-01-2003)
Phase IV – Overview

  1. Ongoing evaluation and adjustments of workforce planning are built-in
    to the SPB&PM process. The BPRS is the central process for measuring,
    reporting, and reviewing a Division’s performance against approved plans
    and linking these results to achievement of the overall mission and strategic
    goals of the IRS.

6.251.1.12.2 
(07-01-2003)
Phase IV – Roles and Responsibilities

  1. WPC (or applicable decision making body) will review and provide feedback
    and direction on improvements to the workforce planning process.

  2. SHR:WP will:

    1. Maintain the Servicewide AHP for mission critical and management controlled
      positions.

    2. Coordinate with Divisions during AHP updates.

    3. Provide statistical AHP performance updates in support of BPRS.

  3. Divisions (Planners/HR/Budget Experts) will:

    1. Support the BPRS process as defined in the SPB&PM Guidebook.

    2. Develop, maintain and update Division AHP.

    3. On the last day of each quarter, provide SHR:WP with AHP updates with
      an explanation of hiring deviations.

    4. Provide suggestions for improvements in the workforce planning process.

6.251.1.12.3 
(07-01-2003)
Phase IV Process – Business Performance

  1. The Performance Management – Phase IV of the SPB&PM cycle includes
    executing, measuring and monitoring results; and reviewing strategy, program
    and budget. In this phase, Division Commissioners, Directors, Chiefs execute
    their business plan and are held accountable for unit performance against
    the plan through the BPRS.

  2. Each month Divisions conduct analysis on monthly performance results
    and analyze performance against the plan. Monthly Business Performance Summary
    (MBPS) reports are submitted to the Commissioner/Deputy for review.

  3. Business Performance Review (BPR) bi-monthly or quarterly meetings are
    held between the Divisions and the IRS Commissioner/Deputy. The meetings provide
    managers and executives the opportunity to assure that the implemented programs
    are consistent with strategic intent or adjusted to allow for unexpected events
    (e.g., Treasury Inspector General for Tax Administration (TIGTA) or Government
    Accounting Office (GAO) reviews). During the meetings:

    1. Actual performance of the programs are compared to planned performance.

    2. Actual expenditures are compared to the planned budget.

    3. Significant program obstacles are discussed.

    4. Progress of improvement project are evaluated.

  4. Additionally, specific Human Resource issues, activities and progress
    are discussed. For instance, hiring, transition employees, retention, and
    training.

  5. Information from the performance review system is then utilized in preparing
    the IRS Performance and Accountability Report (PAR), which is required by
    GPRA.

6.251.1.12.4 
(07-01-2003)
Phase IV Process – Staffing, Hiring, and other Human Capital Components

  1. In support of Division and SHR reporting requirements, SHR:WP maintains
    the Servicewide Hiring Plan.

  2. On the last day of each quarter, Divisions provide AHP updates with
    an explanation for plan deviations to SHR:WP. Agencywide deviations from the
    AHP by occupational series, grade level and organizational unit are calculated.
    Also, a comparison between what was originally planned and what was budgeted
    is provided. Once updated, SHR:WP forwards the Servicewide Hiring Plan to
    Divisions and key stakeholders.

  3. On a quarterly basis SHR:WP conducts analysis of hiring performance
    for use during the BPRS. Some of the measures utilized might include the following:

    1. Total number of hires by month.

    2. Number and percent of positions filled to date by Division.

    3. Number and percent of position hiring to date by Occupation.

    4. Number and percent of positions filled by external hiring. Sum of the
      number of people by grade and years of service.

6.251.1.12.5 
(07-01-2003)
Phase IV Process – Workforce Planning Process

  1. The workforce planning process is evaluated annually to determine how
    well each of its component parts are functioning and where adjustments are
    needed.

  2. During August of each year SHR:WP will solicit input at the WPC (or
    applicable decision making body) and other customers to determine if changes
    are needed in the process. If so, changes are incorporated into the following
    year planning cycle.

Exhibit 6.251.1-1 
(07-01-2003)
Definitions

Annual Hiring Plan (AHP) An annual plan at the Division level as well as at the Agency level
that defines hiring plans for Full Time Equivalent (FTE) positions (i.e.,
mission critical positions and management-controlled positions). The plan
identifies by position title/series and grade status (journey, above journey,
line manager) the following:
* Baseline Profile (Onboard employees, funded
but not filled positions, hiring requirements to replace attrition, and quantity
of external hires)
* Division Hiring Plan (expected internal and external
FTE hires)
* Division Hiring results (quantity of actual FTE hires)
 
*
Expected quantity of internal or external hires
 
 
 
AHP
execution is monitored at the division level as well as at the agency level.
Authorized Staffing and Charting (ASC) A database that contains organization structures and authorized staffing
positions. The database identifies authorized, vacant, and encumbered positions,
employees in each position, and information on details and temporary assignments.
Authorized Staffing Pattern (ASP) The number of personnel by grade that is allowed for each permanent
employee category within an activity. The ASP is developed for permanent positions
based on the related permanent FTE allotment. Note: HR Connect will eventually
replace this database.
Business Plan In the SPB&PM process each Division creates a Business Plan, which
translates the IRS Strategy, and Program Plan (SPP) into action plans that
articulate what tactical actions, applied resources, and performance milestones
will be implemented to drive the day-to-day operations.
Business Performance Review System (BPRS) The central system for measuring, reporting, and reviewing a Division’s
performance against plans established within the SPB&PM cycle. This evaluation
system enables a periodic review of strategic and operational issues and Division
performance, facilitating the assessment of the IRS’ progress in achieving
its mission and strategic goals.
Demand Analysis Process of identifying the workforce needed to carry out the mission
of an organization. It includes an examination of the external environment
to obtain a better understanding of what is happening in the environment in
which IRS operates.
Divisions Divisions consist of:
* Four Operating Divisions (ODs): Small Business/Self
Employed (SBSE), Wage & Investment (W&I), Tax Exempt/Government Entities
(TEGE), Large-Mid Size Business (LMSB).
* Functional Divisions (FDs): Taxpayer
Advocate Service (TAS), Criminal Investigation (CI), Appeals, and Counsel.
*
Support Areas: Modernization, Information Technology & Security Services
(MITS), Agency Wide Shared Services (AWSS), National Headquarters (NHQ), and
Communications & Liaison.
Drivers of Program Resources (DRIPs) Analysis phase in the SPB&PM cycle where Divisions identify and
analyze the drivers that will cause an increase or decrease in resource requirements,
and that will influence the achievement of strategy and program plans. DRIPs
analysis address these questions: What are the costs and savings generated
by the proposed solution of the Trend, Issue, Problem (TIP), what is the proposed
funding source, and what performance measures are impacted?
Executive Steering Committee for Organizational Change
(ESCOC)		 A committee established by direction of the Commissioner on April 4,
2003. The committee, chaired jointly by the Chief Human Capital Officer and
Deputy Chief, Agency Wide Shared Services (AWSS), consists of Deputy Division
Commissioners and representatives from Business Systems Modernization Office
(BSMO), Chief Financial Officer (CFO), AWSS, MITS and Equal Employment Office
(EEO). The committee, on a Servicewide basis, guides proposed workforce restructuring
and transition proposals that have the potential to significantly alter the
IRS mission or its performance, and ensures comprehensive and consistent interactions
with the Service’s workforce.
Full Time Equivalent (FTE) Total number of regular hours (i.e., not including overtime or holiday
hours) worked by employees divided by the number of paid hours applicable
to each Fiscal Year (FY). Annual leave, sick leave, compensatory time off
and other approved leave categories are considered to be
“hours
worked”
for purposes of defining full-time equivalent employment. OMB
A-11 states that there are 261 paid days or 2088 available hours in FY 2003
and 2005. In FY 2004 there are 262 days or 2096 available hours. Some years
have 260 paid days or 2080 available hours. Therefore, one FTE can equal to
2080, 2088, or 2096 available hours depending on the FY.
Gap Analysis Process of comparing the workforce supply projection to the workforce
demand forecast.
HR Connect Treasurywide initiative and refers to the PeopleSoft Human Resources
Management System. The primary function of HR Connect is the automation of
various personnel and human resources-related processes. It will also provide
tools for performance management, succession planning, and career planning,
and will allow the IRS’ Divisions to access their inventory of employee
skills and plan for future needs.
Integrated Workforce Planning System (IWPS) A multi-staged planning and analysis model, which factors in a variety
of workforce parameters and integrates related budget and planning data. The
models output includes estimates of retirement and attrition by Division and
occupation. It also estimates internal transfer and reassignment of personnel
that are driven by budget allocation and losses of the current workforce external
to the IRS. The IWPS also evaluates these changes in terms of likely training
requirements changes and also factors in the time it takes
”
new employees”
to reach full performance.
Management Controlled Positions Positions or types of positions that are of high interest to the Senior
Leadership Team. For instance:
* High Grades (GS 14 and above, excluding
SES equivalent positions)
* Management positions above the front line
*
Occupational area of Interest (e.g., Management Analyst)
Mission Critical Positions Jobs in series mission critical to IRS frontline operations, which
include Revenue Agents, Revenue Officers, Tax Compliance Officers, Tax Specialists,
Tax Examiners, Appeals Officers, Settlement Officers, Customer Service Representatives,
Tax Resolution Representatives, certain Engineers and Economists (LMSB), certain
Tax Law, Federal/State/Local Government Specialists and Tribal Government
Specialists (TEGE), Special Agents and Information Technology Specialists.
Senior Leadership Team (SLT) Senior IRS leaders consisting of the Commissioner, Deputy Commissioner,
Assistant Deputy Commissioner, all Division Commissioners, as well as Directors,
and Counsel
Strategy & Program Plan (SPP) Translation of strategic decisions made during the Strategic Assessment
and Commissioner’s Guidance phases of the SPB&PM process into program
narrative, cost, and measurement data. The SPP is a means of communicating
Division goals, objectives, strategies, operational priorities and improvement
projects.
Treasury Integrated Management Information System (TIMIS)
 Database for storing and tracking all employee personnel and payroll
data.
Workforce Plan Identification of current and future workforce needs of the organization,
based on anticipated current and future development in the organization and
its products, services, markets, technologies, and business processes. The
Workforce Plan sets long-term objectives for workforce activities at the organizational
and unit levels.
Workforce Planning Process whereby a strategic plan is developed which sets the organization’s
objectives for competency development and workforce activities. These objectives
are supported by workforce allocation with each organizational unit to satisfy
both unit needs and strategic objectives. The workforce planning process fundamentally
involves identifying the gap between the existing workforce supply and the
future workforce competency needs and position requirements based on projected
workload and strategic objectives. The plan may also enumerate or recommend
closing gap strategies and or options for the Senior Leadership Team.
Workforce Planning Council (WPC) Established by direction of the Commissioner on September 21, 2001.
The Council, chaired jointly by the Chief Financial Officer (CFO) and Chief
Human Capital Officer (CHCO), is involved with issues of Servicewide staffing,
hiring and issues that cross cut both financial and human resource management

Exhibit 6.251.1-2 
(07-01-2003)
Acronyms

AHP Annual Hiring Plan
APP Annual Performance Plan
APPR Annual Program Performance Report
ASC Authorized Staffing and Charting
ASP Authorized Staffing Pattern
AWSS Agency-Wide Shared Services
BPR Business Performance Review
BPRS Business Performance Review System
CBU Corporate Budget Unit
CFO Chief Financial Officer
CHCO Chief Human Capital Officer
CPPU Corporate Planning and Performance Unit
DRIPs Drivers of Program Resources
FD Functional Divisions
FTE Full-Time-Equivalent
FTP Full-Time-Permanent
GAO General Accounting Office
GPRA Government Performance and Results Act
HR Human Resources
IRS Internal Revenue Service
IWPS Integrated Workforce Planning System
MBPS Monthly Business Performance Summary
MITS Modernization, Information Technology & Security Services
NHQ National Headquarters
OD Operating Divisions
OMB Office of Management and Budget
OPERA Office of Program Evaluation & Risk Analysis
PAR Performance and Accountability Report
SHR Strategic Human Resources
SAR Strategic Assessment Report
SLT Senior Leadership Team
SPB&PM Strategic Planning, Budgeting and Performance Management
SPP Strategy & Program Plan
TIGTA Treasury Inspector General for Tax Administration
TIMIS Treasury Integrated Management Information System
WP Workforce Planning
WPC Workforce Planning Council

Exhibit 6.251.1-3 
(07-01-2003)
Workforce Planning Model

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Exhibit 6.251.1-4 
(07-01-2003)
Linkage Between SPB&PM and Workforce Planning

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Exhibit 6.251.1-5 
(07-01-2003)
Summary of Major Deliverables in Support of the Workforce Planning
Process

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