State of Texas
Department of Information Resources
Leadership for Texas Government Technology

Agency Strategic Plan for Fiscal Years 2007–2011

Appendix E. Workforce Plan

I. Agency Overview

A. Mission

As the chief technology office of the State of Texas, our mission is to support the effective and efficient use of public funds by promoting a shared vision where the state maximizes the value of its technology investment by identifying common areas of interest, using technology to advance agency-specific missions, and preserving flexibility to innovate.

B. Strategic Goals and Objectives

Goal A–Promote Efficient Information Resources Policies and Systems

Promote a statewide environment which encourages efficient use and management of information resources and assist the state leadership in achieving its goals through advice and recommendations on information resources issues.

Objective 01–Enhance Statewide Enterprise Management of Information Resources

Enhance the statewide enterprise management of information resources (IR) by producing the biennial Statewide Information Resources Strategic Plan and performance reports, issuing statewide recommendations, reviewing national and international standards with recommendations for state applicability, providing IR education that facilitates continuing education certification requirements for IRMs, and securing state assets.

Strategy 01–Statewide Planning

Produce the Biennial Statewide Information Resources Strategic Plan and related performance reports and analyses, issue statewide recommendations, provide a technology trends and management practices education forum for state agency personnel including IRMs, and conduct interagency and intergovernmental workgroups.

Strategy 02–Rule and Guideline Development

Develop rules and guidelines that establish statewide technology standards and best practices for agencies to manage and align their technology with their business environments and to guide effective project delivery.

Strategy 03–Statewide Security

Develop statewide security standards for Information Resource assets and support the state"s Homeland Security efforts through technical analysis, training and awareness efforts, and proactive, prevention, threat reduction, and response to IR security threats.

Goal B–Manage Cost-Effective Service Delivery of Information Technology (IT) Commodities and Services

Assist state agencies and other governmental entities in achieving their objectives through the most cost-effective acquisition and delivery of IT commodities and services

Objective 01–Improve Acquisition

Maximize the State’s buying power for IT commodities and services

Strategy 01–Contract Administration of IT Commodities and Services

Manage a procurement infrastructure for IT commodities and services which maximizes the state’s volume buying power and enhances the quality of purchases by negotiating, managing, and monitoring IT contracts.

Objective 02–Consolidation/Shared Services

Provide Consolidation/Shared IT Services to State Agencies and other Government Entities in Texas and other States

Strategy 01–Data Center Services

Implement, monitor, and maintain consolidated Data Center Services.

Strategy 02–TexasOnline

Manage contract for TexasOnline, the state of Texas e-government portal

Strategy 03–Shared Services and/or Technology Centers

Implement, monitor, and maintain shared IT services, comprising either voluntary services as an option to agencies or services provided through a Technology Center.

Goal C–Telecommunications

To assist governmental entities in secure and cost-effective usage of network services

Objective 01–CCTS Prices/Responses

Provide a Capitol Complex Telephone System (CCTS) basic station rate that is five percent or more below the estimated average local exchange carrier price for basic business service.

Strategy 01–Capitol Complex Telephone

Maintain and increase the capabilities of the Capitol Complex Telephone System

Objective 02–Telecommunications

Provide secure telecommunications services that deliver business value through use of traditional utility methods (legacy TEX-AN) and through converged IP communications services (enhanced TEX-AN) that, on a statewide basis, are below average industry prices when compared to a sampling of rates published by service providers registered with the Texas PUC for Intralata and Interlata providing like voice traffic, data, and other media services to customers in Texas.

Strategy 01–Network Services

Maintain statewide network services and provide a shared infrastructure to support converged IP communications services

Strategy 02–Network and Telecommunications Security Services

Provide converged network security services, including telecommunications networks, that encompass network assessments and monitoring, as a proactive means to identify and remediate vulnerabilities and external network threats for participants of the state’s network security and operations center and security services for other eligible entities when requested and approved.

Goal D–Historically Underutilized Businesses

Encourage and effectively promote full and equal opportunities for small and minority businesses in state contracting through education, communication, training, awareness and outreach.

Objective 01–Meet or Exceed HUB Utilization Goals

Meet and/or exceed the state’s utilization goals as follows: 20 percent for professional service contracts; 33 percent for all other services contracts; 12.6 percent for commodities contracts.

Strategy 01–Maximize Participation

Promote and increase DIR’s internal contracting opportunities.

Objective 02–Provide HUB Avenues through Cooperative Contracts

DIR’s Cooperative Contracts Program will maximize HUB participation and increase awareness of opportunities.

Strategy 01–Maximize Cooperative Contracts HUB Avenues

DIR will continue to develop and implement internal procurement initiatives that support good faith efforts through partnership with Texas Association of HUBs; sponsoring networking events that allow HUBs to network with prime vendors; advertising and informing HUB vendors about DIR’s future contracting opportunities; attendance at pre-bid conferences; establishing HUB relationships with various minority organizations.

C.  Business Functions

The main functions of the agency are to:

• Manage consolidated data center services;
• Develop, implement, and manage a new consolidated Internet Protocol network to provide a more robust, efficient and secure statewide infrastructure;
• Provide enhanced and expanded telecommunications services to meet the growing needs of state agencies and local governments;
• Leverage the statewide investment in information and communications technology, for example, leveraging the Lonestar Education and Research Network (LEARN) to reduce state agency telecommunications costs;
• Assist agencies in providing secure, reliable and statewide IT operations;
• Promote cyber- and network security through the development of a Statewide Network and Security Operations Center;
• Develop and implement statewide security policies, standards, guidelines, and procedures;
• Support the Texas Office of Homeland Security in key initiatives through a tailored implementation plan;
• Negotiate and manage statewide agreements for quality IT products and services to reduce the cost and increase the value of state government computer hardware, software, and services;
• Manage the TexasOnline project and contract to ensure cost recovery and prepare for re-procurement;
• Implement and manage shared services when proven to be an effective and efficient technology service delivery option for the state;
• Develop, in consultation with the Legislative Budget Board and State Auditor’s Office, guidelines and forms required for implementation of the Texas Project Delivery Framework;
• Develop and implement an enterprise architecture for the state that results in rules and standards for information technology;
• Develop a policy framework for promoting code reuse and programming collaboration across state government;
• Develop an integrated strategy for enterprise applications across state government;
• Improve the state’s system for reporting statewide IT assets and expenditures;
• Develop rules and training and provide technical assistance to state agencies; for example, training relating to the use of electronic and information resources by state agencies to facilitate access to individuals with disabilities;
• Complete all legislative mandates in a timely manner; and
• Provide research, advisory services, and technical assistance to all levels of Texas government.

D.  Anticipated trends and changes that will impact organization

DIR anticipates that the following business trends will affect the workforce needs of the agency:

• The development and use of multiple IT solutions to respond to business needs;
• The continued rapid pace of technological advances;
• Increased demand for online government services; and
• Consolidation of IT services and resources;
• Outsourcing and privatization as a strategy to acquire best of class operations and allow agencies to focus on their core competencies;
• Technology developments in information security, privacy protection, and mobile work policies;
• The success of self-funded models for implementing IT projects;
• The advent of products such as the XML suite of standards and the corresponding demand for normalizing information across organizations;
• The development of open-source software and related services;
• Improving economy and job market will increase demand for technically competent employees.

Directions from the 79th Legislature and recent organizational developments are having significant impact on the agency.

• HB 1516 – The Legislature directed DIR to establish statewide technology centers and require agencies to transfer their data center and disaster recovery services to the consolidated data center.
• HUB Utilization – Section 2054.381 of HB 1516 directed DIR to maximize vendor competition to the extent feasible and cost effective.

II.  Current Workforce Profile (Supply Analysis)

A.  Critical workforce skills

DIR’s talented workforce remains its greatest resource; however, the agency continues to be called upon to do more with less-the challenge will be to do so with constant or reduced appropriations and state salaries that are noncompetitive with the private sector. There are a number of skills that are critical to the agency’s ability to operate effectively and efficiently and to execute the agency’s business functions and legislative mandates. These critical skills include those in the areas of customer service, contract management, negotiations, telecommunications and IT systems analysis, government accounting, network management, project management, Web administration, IT analysis including IT security analysis and data center operations management and consolidation.

B.  Workforce demographics

As of May 1, 2006, the agency has a total head count of 206. The agency is authorized to have 222.5 full time equivalent employees (FTEs). The following lists profile DIR’s current workforce and include both full-time and part-time employees. The agency’s workforce is comprised of nine percent more females than males. Seventy-five percent of employees are age 40 and older, while 72 percent have fewer than five years of service.

DIR Workforce Demographics  (May 1, 2006)
Source: DIR Human Resources Office

Gender of Workforce:

• Female, 54%
• Male, 46%

Tenure of Workforce

• Less than two years, 33%
• Two to four years, 38%
• Five to nine years, 19%
• Ten to fifteen years, 7%
• More than fifteen years, 3%

Age of Workforce

• Under thirty, 3%
• Thirty to thirty-nine, 22%
• Forty to forty-nine, 33%
• Fifty to fifty-nine, 36%
• Over sixty 6%

The following tables compare DIR’s percentages of African American, Hispanic, and female employees to the statewide civilian workforce, as reported by the Texas Workforce Commission’s Civil Rights Division. The agency continues to meet or exceed several diversity targets. Females continue to be well represented in all job categories except for technical staff. African Americans meet or exceed targeted levels in three of five job categories, while Hispanic Americans meet or exceed targeted levels in four of five job categories.

DIR Workforce Utilization Analysis (May 1, 2006)

Source: State Civilian Workforce Composition, Texas Workforce Commission’s Civil Rights Division; Bureau of Labor Statistics, Geographic Profile of Employment and Unemployment for the State of Texas; and Equal Employment Opportunity Commission reports (EEO-4 and EEO-1).

The agency will continue to concentrate efforts on improving diversity targets that are under-represented: the number of females in technical positions and the number of Hispanic Americans and African Americans in official/administration, professional and service/maintenance positions.

C.  Employee turnover

The loss of experienced, talented employees is costly and affects the agency’s ability to function at maximum efficiency. In addition to lost productivity, high turnover rates increase costs in the areas of recruitment and selection, training, and orientation.

DIR’s turnover rate has increased since fiscal 2004 but has not exceeded the state’s turnover rate since fiscal 2001. Current turnover rates reflect the slightly improved economy; however, the agency’s turnover rate for fiscal 2005 exceeds the three preceding years.

From fiscal 2001 through fiscal 2005 the largest rate of turnover occurred in the agency’s Systems Analyst classification series. This is a critical skills position at DIR due to the work performed by systems, planning, and policy analysts throughout the agency to leverage the state’s IT resource investments. Turnover also occurred in sizeable numbers among the agency’s positions classified as directors and administrative support staff.

Of the 99 separations that occurred during this period, 35 left the agency for higher salary or career advancement-fifteen to state agencies, one to the federal government, and 19 to the private sector. Of the remaining separations, twenty-six retired, thirteen were for personal reasons, seven were dismissals, four relocated, four temporary assignments ended, three returned to college, three were due to reduction-in-force, two reported dissatisfaction with job or supervisor, one resigned in lieu of termination, and one due to death.

DIR Employee Turnover Rate for Fiscal Years 2001–05 (May 1, 2006)

In fiscal 2005, the greatest area of turnover was among staff with two to four years of service.

Employees over the age of 40 comprised 63% of the agency’s turnover for fiscal 2005.

D. Retirement eligibility

A maturing workforce and increased competition for skilled employees requires employers to work harder to retain institutional knowledge and makes retaining and recruiting new talent imperative.

Predicting future turnover based on retirement eligibility is difficult because an employee’s eligibility to retire in and of itself is not an accurate indicator of his or her election to retire. Other factors, such as income requirements and eligibility for insurance and social security benefits play a major factor in the decision to retire.

During fiscal 2004 and 2005, 17 employees retired and received the 25 percent retirement incentive bonus. One was rehired. In fiscal 2006, nineteen employees will become eligible to retire under the (rule of age 60 + 5 years of service) and under the (rule of 80). The agency projects that an additional three will retire in fiscal 2007 and five will retire in fiscal 2009.

III. Future Workforce Profile (Demand Analysis)

Continued reliance on information technology to enhance effective, efficient government services, changes in telecommunications business and support technologies, and the implementation of a shared technology infrastructure will result in the need to change the mindset of how technology is used in the state’s business processes.

DIR will be pressed to promote effective IT project planning and management and access to cost-effective IT products and services. As agencies conduct more business online, DIR will need to continue to place emphasis on ensuring the security of the state’s network infrastructure.

Greater reliance on IT will elevate the agency’s role in state government as agencies and universities increase their reliance on technology.

A. Critical functions

• Increased emphasis on IT analysis from an enterprise-wide strategic perspective
• Increased emphasis on project management
• Increased emphasis on contract management and oversight
• Increased emphasis on IT security and privacy issues
• Increased emphasis on contract negotiations and contract and vendor management
• Greater demand for Return on Investment
• Expansion of marketing, sales, customer service
• Increased emphasis on financial monitoring of new contracts
• Increased emphasis on HUB outreach

B. Expected workforce changes

• Training of Telecommunications staff to integrate new technologies into current processes
• Inclusion of contract management and negotiations skills in professional and management staff
• Cross-training of employees in critical functions
• Increase in technical security assessment activities
• Increased emphasis on project management capabilities

C. Anticipated increase/decrease in number of employees needed to do the work

• Increased and changing demands to be addressed by reallocations of FTEs within the agency
• Use of contract workforce when appropriate
• Agency needs to develop skills through training and focused hiring practices
• Agency needs to focus efforts on retaining and developing staff

D. Future workforce skills needed

To meet the agency’s goals and objectives over the next few years, the following competencies, in addition to the critical skills listed previously, are essential:

• Change management and process re-engineering
• Advanced technical skill sets (programming, database administration, data design, network administration)
• Advanced project management
• Advanced financial analysis skills
• Advanced IT security analysis
• Advanced contract management and negotiation skills
• Advanced data center operations management and consolidation skills
• Advanced business analysis skills
• Advanced data modeling/taxonomy management skills
• Advanced supervisory and employee development skills
• Advanced multi-tasking skills

IV. Gap Analysis

While staff members have most of the skills to do the work of the agency and the current gap in proficiency levels is not great, over the next five-year period, DIR is likely to experience a severe shortage of critical skills at the levels needed. After analyzing the workforce plan data, it is determined that:

• DIR continues to have the vulnerability of not being able to hire and maintain the necessary levels of critically-skilled staff.
• DIR’s ability to attract candidates with the level of experience and desired skills for senior-level IT positions has improved in recent times; however, the risk of losing senior-level IT staff to better-paying jobs in the private sector remains a risk factor.
• It will continue to be difficult to train employees for higher-level duties and responsibilities and meet existing performance expectations.

DIR’s division directors were asked to re-evaluate current functions and identify the appropriate staffing and skill levels necessary to meet their needs over the next four years. Skills were rated on a scale from one to four to indicate current and desired proficiency levels. The results are shown in the following tables.

While a downturn in the economy has made it easier to hire and retain qualified IT staff, DIR anticipates continued shortages of qualified IT workers to fill critical skill positions.

DIR continues to lose younger, less tenured employees, mainly due to higher salaries elsewhere. This continues to reduce the pool of critical skill employees the agency can consider for promotion, career development, and succession planning.

As DIR faces challenging business trends and strives to fulfill its legislative mandates, qualified senior- and mid-level IT staff will be in great demand. The agency will compete with private and public sector employers for a dwindling number of workers.

V. Strategy Development

To address many of the deficits between current and future workforce demands, DIR has developed goals for the workforce plan. These goals are based on a range of factors identified through analyzing the agency’s mission, objectives, strategies, and workforce. DIR’s workforce goals and action plan are as follows.

Goal 1: Develop a competent, well-trained workforce.

GAP
Current employees lack required levels of critical skills.

RATIONALE

The continued training and development of current employees is critical to the success of the agency.

DIR needs to prioritize required critical competencies, identify training opportunities to develop or enhance these skills, and budget resources for training. DIR needs to decide when it is appropriate to supplement internal staffing skills with contracted short-term expertise.

ACTION STEPS

• Establish and maintain skills matrices to address needs that occur or are anticipated due to changes in program strategies, activities, and technological enhancements.
• Develop and implement a program that requires senior staff to mentor less experienced employees.
• Focus training efforts on areas with the greatest risk of potential loss of knowledge and in the areas of identified knowledge gaps.
• Update training plans as needed and no less than annually in conjunction with performance expectations. Training plans must be developed as a joint effort between management and staff.
• Ensure general cross-training among staff.
• Ensure the most appropriate or combination of training mediums are used to deliver training to employees (e.g., computer-based training, educational reimbursement for college credit courses, subject matter expert initiated briefings, seminars, conferences, user groups).
• Conduct training needs assessment and design training plans to address gap deficiencies.

Goal 2: Hire and retain the right employee to do the job.

GAP

Improving job market will make it hard to attract and retain staff. DIR will need to use creative methods to counter higher salary of competitors i.e. flexible work schedule, telecommuting, etc.

RATIONALE

DIR is the chief IT agency for the State of Texas and IT is key to finding appropriate, effective solutions for delivering government services and managing costs. DIR must be able to attract and retain experienced, qualified, mid- and senior-level IT staff.

ACTION STEPS

• Develop and implement recruitment strategies that highlight careers in public-sector IT.
• Perform in-depth research on turnover data to pinpoint why employees leave the agency; try to address problem areas.
• Use surveys and focus groups as tools to evaluate agency culture and operations, focusing on those areas where employee input shows the greatest potential for improvement.
• Ensure that employees have current job descriptions and performance plans, defined career ladders, and timely appraisals.
• Cross-train staff in other functional areas, broadening their experience and value to the agency. Allow staff seeking new challenges to work on agency-wide and developmental projects.
• Design and implement a progressive recruiting plan.
• Train supervisors on hiring best practices
• Provide timely feedback on performance and proactively develop and implement development strategies.
• Familiarize staff with pay raise guidelines and processes, including state-mandated time restrictions or salary/budget caps.
• Utilize pay incentives, as budget permits, to retain and attract staff. Salary tools include merit increases, one-time merit increase, salary adjustments, and bonuses. Ensure that performance incentives are built into compensation.
• Allow staff to work flexible schedules or compressed work weeks, and to telecommute or job share when appropriate.
• Conduct continuous analysis in order to make on the spot adjustments in retention strategies.
• Develop family-friendly policies to aid staff retention.
• Maintain a team atmosphere, encouraging input and interaction at all levels, balancing business and personal goals as much as possible.
• Promptly post and fill vacant positions.
• Utilize resources to ensure that the agency is casting as broad a net as possible to enhance recruitment efforts, including national electronic and print media.
• Continue to be willing to create and hire intern-level positions.
• Provide timely orientation of new employees into the organization.
• Ensure availability of the means for providing non-monetary incentives and rewards.
• Provide ongoing coaching and feedback, encouraging career growth and maximizing communications.
• Strive to maintain an organization that is diverse and an organizational culture that provides growth opportunities and challenging, meaningful work and that promotes open communication and effective working relationships.
• Ensure availability of training opportunities and incentives such as tuition reimbursement.

Goal 3: Perform succession planning

GAP

While focusing on hiring and retaining staff is important, the agency may not be adequately prepared for unexpected or unforeseen events that result in the loss or incapacitation of key employees.

DIR needs to use succession planning to develop and maintain strong leadership and to ensure that the skills and competencies required for the current IT environment are readily available.

RATIONALE

DIR is the chief IT agency for the state and IT is key to finding appropriate, effective solutions for delivering government services and managing costs. DIR must be able to attract and retain experienced, qualified, mid- and senior-level IT staff.

ACTION STEPS

• Compile a list of positions that require successors, addressing short-term and long-term needs. Key positions such as executive management staff should be included.
• Investigate the use of succession planning software or outside consulting.
• Establish a process by which to assess those employees who are likely successors for each job; consider a ranking system for each position to determine the order of succession, including at least two individuals for each position.
• Determine positions for which there is no likely successor and identify how the position will be filled (external hire, contract, temporary).
• Establish the means by which successors will be trained and prepared for positions they may potentially assume.
• Refrain, as much as possible, from allowing key staff members to travel using the same mode of transportation at the same time for business trips.
• Discourage staff from participating in unsafe activities.
• Update the succession plan, adding employees as necessary to replace those who filled vacancies or who otherwise move on.