Executive and Management Development

SUMMARY: The Office of Personnel Management (OPM) is proposing to amend

part 317 of its regulations governing initial career appointment to the

Senior Executive Service (SES) and Qualifications Review Board

certification. The proposed changes to part 317 would eliminate the 3-

year limitation on the validity of Qualifications Review Board (QRB)

certification for appointment to the Senior Executive Service and

simplify the Executive Resources Board (ERB) certification of

candidates. The Office is also proposing to amend part 412 of its

regulations governing executive and management development. The

coverage will be expanded to include supervisory development. The

revised regulations present broad program criteria on the systematic

development of executives, managers, supervisors, and candidates. They

also establish minimum requirements for formal Senior Executive Service

candidate development programs. The changes proposed promote training

and development activities which foster a corporate perspective of

Government.

DATES: Written comments will be considered if received no later than

February 9, 1996.

ADDRESSES: Send or deliver written comments to the Ms. K. Joyce

Edwards, Assistant Director, Office of Executive Resources, Office of

Personnel Management, Room 6484, 1900 E Street NW., Washington, DC

20415.

FOR FURTHER INFORMATION CONTACT:

Constance Maravell, 202-606-1832.

SUPPLEMENTARY INFORMATION: The Office of Personnel Management (OPM)

issued proposed regulations on executive and management development on

March 2, 1993 (58 FR 11988). We received comments from 23 agencies, 9

individuals and the Federal Executive Institute Alumni Association.

Most comments expressed support for including the development of

supervisors along with that of managers and executives. The proposed

regulations were withdrawn on February 11, 1994 (59 FR 6593) to see

which objectives of the regulations could be achieved through

alternative means and so they could be reviewed in the context of the

sunsetting of the Federal Personnel Manual in December 1993.

General

In keeping with the spirit of Executive Order 12861 on

``Elimination on One-Half of Executive Branch Internal Regulations,''

we re-examined the proposed regulations. This has resulted in the

elimination of regulations on needs assessments for the management

profession and for individuals and formal candidate development

programs for supervisors and managers. Proposed requirements in these

areas have been removed, not because we have found such activities to

be ineffective, but because agencies should be free to engage in them

without being required to do so. Well selected developmental

experiences enhance the competence and broaden the perspective of the

managerial workforce. We encourage agencies to undertake these

activities on a systematic basis.

We are also deleting regulations that are covered by statute which

require no further clarification such as OPM's responsibility for the

review of agency programs. We would like to draw agency attention to

two provisions of statute which will not be regulated further. The

first is the use of sabbaticals in general, 5 U.S.C. 3396(c). The

second is, 5 U.S.C. 3396(d), authorizing sabbaticals, training, or

details or other temporary assignments in other agencies, State or

local governments, or the private sector for the continuing training

and development of incumbent career SES members

The earlier proposed regulations also provided for the reactivation

of expired QRB certifications for graduates of formal SES candidate

development programs (CDP). Reactivation was accomplished by a

variation to the regulations in December 1993, which extended

certifications until December 31, 1996. The current proposed

regulations in part 317 would remove the present 3-year time limit on

all QRB certifications. The removal would apply to certifications

issued before the regulations as well as those issued afterwards.

In response to a recommendation from the Executive Resources

Management Group work group on staffing, we propose to simplify

procedural requirements for the ERB certification of SES candidates.

Specifically, when there are less than 10 eligible candidates for an

SES position, an ERB would be permitted to refer all candidates to the

appointing authority without further ranking. The statutory requirement

that ERB's make written recommendations must be observed regardless of

the number of candidates.

What remains in the regulations is a clear set of criteria which

promote a corporate perspective of governance through the systematic

development of candidates for the SES and the continuing development of

supervisors, managers, and executives. Public managers with a corporate

perspective respect and embrace the dynamics of American democracy;

they recognize their fundamental responsibility for balancing change

and continuity. Their values encompass a respect for both diversity and

merit. Their commitment to Government service transcends their agency

mission and individual profession. Executives with a corporate

perspective will play a critical role in the reinvention of Government.

These regulations recognize and give meaning to the findings of

OPM's 1992 Leadership Effectiveness Study. The 10,000 managers who

responded identified 22 generic competencies essential to successful

performance as leaders in any government position. The study found that

effective supervisors, managers and executives have a shared base of

competencies. As individuals move from supervisors to managers and

executives they must acquire additional enhanced competencies. For this

reason, the preparation of supervisors and managers is considered

integral to the development of candidates for the SES.

[[Page 63455]]

The criteria in section 412.103 are designed to enable agencies to

run strong supervisory, managerial and executive development programs

to provide a corporate perspective in the context of their succession

planning systems. This assures that there are enough prepared and

qualified employees as candidates for SES positions. This section

requires agencies to provide initial and continuing training and

development to their management corps. Formal SES candidate development

programs are one option, but not the only one for assuring that

agencies have enough candidates for the SES.

SES Candidate Development Programs (CDP)

If an agency desires graduates of its SES candidate development

program to receive Qualifications Review Board certification, the

program must meet the minimum standards in Sec. 412.104. OPM will

review all programs prior to announcement for the first time under

these regulations regardless of whether they have been approved under

the previous regulations. After the initial announcement, OPM will only

review programs if there is a significant change in the program.

The standards meet statutory requirements and support the National

Performance Review recommendation for promoting a corporate culture in

the SES. During the time the candidates are in the program, they must

attend at least 80 hours of formal interagency training programs; have

developmental assignments totalling 4 months; and have a mentor. If an

agency wishes to deviate from these minimum requirements, it must

obtain an exception from OPM before the candidate starts the program.

OPM believes that even individuals who are well qualified for an

SES appointment can benefit from this minimum training and development.

It is not our intention to grant exceptions to the minimum requirements

based on the fact that the candidate is already well qualified to enter

the SES. OPM does not support the use of the formal SES candidate

development program as a mechanism for ``precertifying'' fully

qualified individuals for the SES.

These standards differ from the existing regulations in the

following ways. Agencies can choose, under the standards, the formal

interagency executive level training experience rather than be limited

to OPM approved programs. An agency may substitute a work experience,

longer than 80 hours, that involves multiple agencies for formal

training; but this substitution does not eliminate the requirement for

a developmental assignment. The length of the developmental work

assignments has been specified to eliminate confusion about what cases

will be presented to the QRB.

One way to promote a corporate perspective in the SES is to

encourage the selection of qualified applicants from outside the

agency. The law, in 5 U.S.C. 3393(a), supports this goal by requiring

at least governmentwide competition for initial appointment to the SES.

While the proposed regulations on recruitment for SES CDP are

consistent with this statutory requirement, they provide flexibility

for those agencies which have demonstrated support for an SES corporate

perspective.

Specifically, the exception from Governmentwide competition in the

current regulations for agencies with 150 or fewer allocated SES

positions for their candidate development programs has been changed in

two ways. First, the exception is available to agencies which can show

OPM that in the 5 years prior to announcing a CDP, at least 15% of the

career SES members appointed come from outside the agency. An agency

may be able to conduct one offering of a CDP under this exception but

not another because the agency does not meet the criterion at that

time. Second, when there has only been agencywide competition for the

CDP, the graduates of these programs are required to compete

Governmentwide for entry to the SES.

The regulations on ``status'' and ``non-status'' SES candidate

development programs currently in subpart E have been rewritten in a

new subpart B to eliminate redundancy. There is no change in the nature

of the programs.

Regulatory Flexibility Act

I certify that these regulations will not have significant economic

impact on a substantial number of small entities because they affect

only Federal employees and agencies.

List of Subjects in 5 CFR Parts 317 and 412

Government employees.

Office of Personnel Management.

James B. King,

Director.

Accordingly, the Office of Personnel Management proposes to amend 5

CFR parts 317 and 412 as follows:

PART 317--EMPLOYMENT IN THE SENIOR EXECUTIVE SERVICE

1. The authority citation for part 317 continues to read as

follows:

Authority: 5 U.S.C. 3392, 3393, 3393a, 3395, 3397, 3593, and

3595.

2. In section 317.501, paragraph (c)(5) is revised to read as

follows:

Sec. 317.501 Recruitment and selection for initial SES career

appointment.

* * * * *

(c) * * *

(5) Provide that the ERB make written recommendations to the

appointing authority on the eligible candidates and identify the best

qualified candidates. If there are less than 10 eligible candidates,

the ERB may refer to the appointing authority all candidates as ``best

qualified.'' Rating sheets may be used to satisfy the written

recommendations requirement for individual candidates, but the ERB must

certify in writing the list of candidates to the appointing authority.

* * * * *

3. In section 317.502, paragraph (c) is revised to read as follows:

Sec. 317.502 Qualifications Review Board certification.

* * * * *

(c) Qualifications Review Board certification of executive

qualifications must be based on demonstrated executive experience;

successful completion of an OPM-approved candidate development program;

or possession of special or unique qualities that indicate a likelihood

of executive success. Any existing time limit on a previously approved

certification is removed.

* * * * *

PART 412--EXECUTIVE, MANAGEMENT, AND SUPERVISORY DEVELOPMENT

3. Part 412 is revised to read as follows:

PART 412--EXECUTIVE, MANAGEMENT, AND SUPERVISORY DEVELOPMENT

Subpart A--General Provisions

Sec.

412.101 Coverage.

412.102 Purpose.

412.103 Criteria for programs for the systematic training and

development of executives, managers, supervisors, and candidates.

412.104 Formal candidate development programs for Senior Executive

Service positions.

Subpart B--Senior Executive Service Status and Nonstatus Candidate

Development Programs

412.201 Purpose.

412.202 ``Status'' programs.

412.203 ``Non-status'' programs.

[[Page 63456]]

Authority: 5 U.S.C. 3397, 4101, et seq.

Subpart A--General Provisions

Sec. 412.101 Coverage.

This subpart applies to all incumbents of or candidates for

supervisory, managerial, and executive positions in the General

Schedule, the Senior Executive Service (SES), or equivalent pay systems

who are also covered by part 410 of this chapter.

Sec. 412.102 Purpose.

(a) This subpart implements for supervisors, managers, and

executives the provisions of chapter 41 of title 5 of the United States

Code related to training and section 3396 of title 5 related to the

criteria for programs of systematic development of candidates for the

SES and the continuing development of SES members.

(b) The subpart identifies a continuum of preparation starting with

supervisory positions and proceeding through management and executive

positions governmentwide. For this reason, the subpart establishes a

comprehensive system that is intended to:

(1) Provide the competencies needed by supervisors, managers, and

executives to perform their current functions at the mastery level of

proficiency; and

(2) Provide learning through development and training in the

context of succession planning and corporate perspective to prepare

individuals for advancement, thus supplying the agency and the

government with an adequate number of well prepared and qualified

candidates to fill supervisory, managerial, and executive positions

governmentwide.

Sec. 412.103 Criteria for programs for the systematic training and

development of executives, managers, supervisors, and candidates.

Each agency must provide for the initial and continuing development

of individuals in executive, managerial, and supervisory positions, and

candidates for those positions. The agency must issue a written policy

to assure that their development programs:

(a) Are designed as part of the agency's strategic plan and foster

a corporate perspective.

(b) Make assignments to training and development consistent with

the merit system principles set forth in 5 U.S.C. 2301(b) (1) and (2).

(c) Provide for:

(1) Initial training as an individual makes critical career

transitions to become a new supervisor, a new manager, or a new

executive consistent with the results of needs assessments;

(2) Continuing learning experiences, both short- and long-term,

throughout an individual's career in order for the individual to

achieve the mastery level of proficiency for his or her current

management level and position; and

(3) Systematic development of candidates for advancement to a

higher management level. Formal candidate development programs leading

to noncompetitive placement eligibility represent one, but not the

only, type of systematic development.

Sec. 412.104 Formal candidate development programs for Senior

Executive Service positions.

Formal SES candidate development programs permit the certification

of the executive qualifications of graduates by a Qualifications Review

Board under the criterion of 5 U.S.C. 3393(c)(2)(B) and selection for

the SES without further competition. The agency must have a written

policy describing how the program will operate. The agency must obtain

OPM approval of the program before it is conducted for the first time

under these regulations and whenever there are substantive changes to

the program. Agency programs must meet the following criteria.

(a) Recruitment. (1) Recruitment for the program is from all groups

of qualified individuals within the civil service, or all groups of

qualified individuals whether or not within the civil service.

(2) Agencies may request an exception to the provision in paragraph

(a)(1) of this section if they can show that during the 5-year period

prior to the announcement of a program they have made at least 15% of

their career SES appointments from sources outside the agency.

Notwithstanding this exception recruitment must be competitive and be

announced at least agencywide. Graduates of these programs who have

been certified by a QRB must then compete Governmentwide for entry to

the SES, but do not have to obtain a second QRB certification before

appointment.

(b) In recruiting, the agency, consistent with the merit system

principles in 5 U.S.C. 2301(b) (1) and (2), takes into consideration

the goal of achieving a diversified workforce.

(c) All candidates are selected through SES merit staffing

procedures. The number selected shall be consistent with the number of

expected vacancies.

(d) Each candidate has an SES development plan covering the period

of the program. The plan is prepared from a competency-based needs

determination. It is approved by the Executive Resources Board.

(e) The minimum program requirements, unless an exception is

obtained in advance of the beginning of the candidate's program, for an

SES development plan are as follows:

(1) There is a formal training experience that addresses the

executive core qualifications and their application to SES positions

governmentwide. The training experience must include interaction with a

wide mix of Federal employees outside the candidate's department or

agency to foster a corporate perspective but may include managers from

the private sector and state and local governments. The nature and

scope of the training must have Governmentwide or multi-agency

applicability. If formal interagency training is used to meet this

requirement, it must total at least 80 hours. If an interagency work

experience is used, it must be of significantly longer duration than 80

hours.

(2) There are developmental assignments that total at least 4

months of full-time service outside the candidate's position of record.

The purpose of the assignments is to broaden the candidate's experience

and/or increase knowledge of the overall functioning of the agency so

that the candidate is prepared for a range of agency positions.

(3) There is a member of the Senior Executive Service as a mentor.

(f) Each candidate's performance in the program is evaluated

periodically, and there is a written policy for discontinuing a

candidate's participation in the program. A candidate can be

discontinued or may withdraw from the program without prejudice to his

or her ability to apply directly for SES positions.

(g) Each candidate has a documented starting and finishing date in

the program.

Subpart B--Senior Executive Service Status and Nonstatus Candidate

Development Programs

Sec. 412.201 Purpose.

Section 3393 of title 5, United States Code, requires that career

appointees to the SES be recruited either from all groups of qualified

individuals within the civil service, or from all groups of qualified

individuals whether or not within the civil service. This subpart sets

forth regulations establishing two types of SES candidate development

programs, ``status'' and ``nonstatus.''

[[Page 63457]]

Sec. 412.202 ``Status'' programs.

Only employees serving under career appointments, or under career-

type appointments as defined in 5 CFR 317.304(a)(2), may participate in

``status'' candidate development programs.

Sec. 412.203 ``Nonstatus'' programs.

(a) Eligibility. Candidates are from outside Government and/or from

among employees serving on other than career or career-type

appointments within the civil service.

(b) Requirements. (1) Candidates must be appointed utilizing the

Schedule B authority authorized by 5 CFR 213.3202(j). The appointment

may not exceed or be extended beyond 3 years.

(2) Assignments must be to a full-time position created for

developmental purposes connected with the SES candidate development

program. Candidates serving under Schedule B appointment may not be

used to fill an agency's regular positions on a continuing basis.

(3) Schedule B appointments must be made in the same manner as

merit staffing requirements prescribed for the SES, except that each

agency shall follow the principle of veteran preference as far as

administratively feasible. Positions filled through this authority are

excluded under 5 CFR 302.101(c)(6) from the appointment procedures of

part 302.

[FR Doc. 95-30053 Filed 12-8-95; 8:45 am]

BILLING CODE 6325-01-M