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NSPS Pay Pool Design, Business Rules and Performance Management Support

Project Description

The U.S. Army’s Office of Manpower and Reserve Affairs (M&RA) converted to the National Security Personnel System (NSPS) as part of Spiral 1.2. As part of this conversion, M&RA was required to design a pay pool structure, and develop business rules to manage pay pool administration during the annual pay-out process and to manage ongoing pay setting activities throughout the year.  In addition, M&RA staff were required to develop job objectives following NSPS developed SMART criteria.  M&RA asked Booz Allen to assist with designing their pay pool structure, develop business rules, and review job objectives prepared by employees.

Intended or Achieved Results

Booz Allen developed and evaluated multiple pay pool structures for the M&RA organization and reviewed those options with M&RA leadership to determine the best fit with their organization and objectives for managing pay for performance distribution.  Booz Allen also researched business rules developed at other organizations for the administration of pay pools and ongoing pay setting administration.  Based on this information, and discussions with M&RA on their pay administration strategy and objectives, Booz Allen prepared pay pool and pay setting business rules.  To support the evaluation of pay-out distributions, Booz Allen developed analytical models to evaluate the impact of different payout distribution models.  Finally, Booz Allen obtained copies of job objectives prepared by a sample of M&RA staff and evaluated those objectives against SMART criteria.  Following this, Booz Allen provided a detailed critique of the objectives and recommendations for improvement.

M&RA implemented a pay pool structure that met its strategic objectives for managing the NSPS pay for performance evaluation and payout process.  In addition, the pay pool and pay setting business rules developed for M&RA represented a set of model business rules to support the NSPS pay for performance program.  Based on the analysis of individual job objectives, M&RA staff received definitive guidance on how to improve their job objectives.

Integrated Classification and Compensation Project

Project Description

The Maryland State Judiciary wanted to establish more unified HR systems and processes.  Historically, the District and Circuit Courts operated separately, with the District centralized and the Circuit more decentralized.  The Judiciary used five variations of its current job evaluation system in different parts of the organization.

The Maryland State Judiciary contracted with Booz Allen to develop an integrated compensation and classification system that supported the Judiciary's overall mission, values, and goals, including the recruitment and retention of a high performance workforce.  Booz Allen's objectives were to: 1) develop a uniform job evaluation methodology that reflects the values of the organization and applies a common interpretation for each comparable group of jobs, 2) develop a uniform classification structure for all groups of jobs, and 3) develop a uniform salary plan that applies to all groups of non-judicial, non-elected employees.

Intended or Achieved Results

Booz Allen designed a series of activities to create the new integrated compensation and classification system.  Booz Allen conducted and analyzed data from stakeholder interviews and focus groups, and conducted a customized market survey to understand the relationship of the Judiciary’s compensation to the marketplace.  Booz Allen also developed a new point factor job evaluation system and data collection tool.  Job evaluation activities included training the Judiciary staff to use the new job evaluation system to and analyzing the results for consistent and fair application of the system. Booz Allen conducted a follow-up compensation survey to re-assess the Judiciary's relationship to the marketplace, and designed a new compensation structure based on desired competitive positioning with the marketplace.  Booz Allen also worked with the Maryland Judiciary to develop a method for placing jobs in the new compensation structure based on the job evaluation results.  In addition, Booz Allen created briefing materials to support communications efforts.

The new classification and compensation system will allow the Judiciary to assess the competitiveness of its compensation programs internally, between the District and Circuit Courts, other related departments and agencies, as well as with other relevant markets. In addition to supporting improved external equity, the creation of a unified system will also help the Judiciary address potential issues surrounding internal equity.  Judiciary management believes this new classification and compensation system directly supports the broader goals of improving overall efficiency and effectiveness, and supports the organization's mission of "improving public trust and confidence.

Organizational Assessment of TransitCenter Inc. (TCI)

Project Description

Booz Allen Hamilton, Inc. (Booz Allen) was tasked with conducting an organizational assessment of TransitCenter (TCI) so that the organization was positioned and structured to successfully meet the substantial business growth forecasted for the next 3-5 years. TCI was the leading provider of transit benefits in the New York, New Jersey, and Connecticut Tri-State region with sales growth of almost $100 million in the last three years. Booz Allen assessed the organization’s strategic position, structure and performance, market position, competitiveness, compensation strategy and governance approach, as they were the critical areas of focus for TransitCenter.  Given the continued market growth in transit benefits forecasted for the next 3-5 years, it was imperative that TransitCenter evolve to best position itself to take advantage of this opportunity, while maintaining its market leadership.

Key Issues and Challenges

TransitCenter was facing several challenges and issues:

• Recently spun off from the Port Authority of New York/New Jersey and became a non-profit
• Rapidly evolving competitive environment
• Increasing demand for new products and services
• Hiring and retaining qualified employees
• Organizing the company in the most effective way
• Customers becoming increasingly aware of and understand the significant value of tax-free transit benefits in a more mature and sophisticated market in which the decision point for employers is less about whether to offer employees transit benefits, and more about which firm to work with to provide that offering

TransitCenter needed to focus on:

• Making the case that it should continue to be the benefit provider of choice for employers and employees and
• Differentiating itself from its competitors.

Intended or Achieved Results

To assess TransitCenter, a customized methodology was developed to focus on the needs of the organization.  The scope of work was structured in three phases:  1. project initiation and data gathering, 2. current state analysis, and 3. recommendations.  The project initiation and data gathering phase was critical to defining the roles and responsibilities of TransitCenter staff, stakeholders, and the Booz Allen team, as well as to identifying and collecting data to inform the current state analysis.  Key staff from TransitCenter participated in a kick-off meeting to communicate TransitCenter’s needs and expectations and to clarify the project scope.  Booz Allen interviewed TransitCenter staff and key stakeholders during the course of the study. In addition, Booz Allen worked with TransitCenter staff to identify and obtain key documentation to assist in conducting the assessment.  The current state analysis used the information collected during the first phase, as well as continued collaboration with key staff responsible for strategies, policies, processes, reports, etc., the current state at TransitCenter and it’s competitive environment were baselined to identify challenges and opportunities for improvement.During the recommendations phase, the Booz Allen team worked with TransitCenter management and staff to validate and discuss findings and to generate recommendations based on TransitCenter’s current operational situation and its desired future state.  The recommendations centered on the need for TransitCenter to act aggressively to strengthen organizational inefficiencies, face the increasing competitive pressure, and build a compensation structure to support the organization’s goals.  Some of the high priority recommendations included:

• Developing measures that tie together individual, Department, and corporate performance with organizational goals
• Making changes to the current organization structure
• Collecting additional data and introducing new metrics to track growth and performance against strategic goals
• Improving the compensation structure

U.S. Department of Education: Demonstration Project Support

Project Description

The Department of Education (ED) recognized that, to accomplish the goal of ensuring the “right people with the right skills are in the right jobs,” the Department needed to pursue personnel flexibilities in the areas of recruiting, hiring, performance management, classification, and compensation processes.  Booz Allen has provided support to ED in identifying the most appropriate personnel flexibilities and in pursuing a federal personnel demonstration project.

Intended or Achieved Results

Starting in the fall of 2002, Booz Allen worked with ED to determine the most appropriate personnel flexibilities for addressing its human capital challenges.  First, the Booz Allen team defined the critical success factors of the effort to include identifying current and potential HR management challenges and describing problems, analyzing issues, and recommending initiatives that would be consistent with and supportive of ED’s management goals and desired outcomes.  Next, the Booz Allen team worked closely with ED involving key stakeholders to identify and prioritize ED’s most pressing HR challenges.  We planned and facilitated focus groups with ED employees and supervisors within Headquarters and the Field offices to gather perceptions about ED’s most prominent human capital issues.  Booz Allen’s ability to remain neutral during difficult discussions with employees was critical to the success of this data collection effort.  We also conducted research on HR flexibilities that incorporate the best practices of the private and public sectors and that are consistent with the merit systems principles and prohibited personnel practices.  Booz Allen recommended and ED selected those flexibilities that would have the greatest possible impact on the challenges the Department faces, in consideration of the benefits and potential risks of each intervention.  The final deliverable provided ED with a comprehensive document with recommendations, options, and a process to facilitate management’s decision-making and determine those HR demonstration project flexibilities to pursue.

Following ED’s selection of six personnel flexibilities, Booz Allen was contracted to assist ED in developing a proposal and planning for a personnel demonstration project under Title V.  The Booz Allen team developed detailed descriptions for each of the flexibilities by reviewing ED’s strategic documents, becoming familiar with ED’s workforce and organization, and by facilitating meetings with mangers from Headquarters and the regions, as well as union representatives.  The facilitated meetings were aimed at getting input for how each of the flexibilities should be designed and carried out.  The Booz Allen team worked closely with ED and OPM representatives to develop the initial demonstration project proposal including the Federal Register Notice and evaluation plan.