Strategic human capital management systems, standards, and focus areas are defined within the Human Capital Framework (HCF). The four systems described below provide definitions and standards for human capital planning, implementation, and evaluation. The HCF systems and standards are:

1. (a) Strategic planning and alignment. A system that ensures agency human capital programs are aligned with agency mission, goals, and objectives through analysis, planning, investment, and measurement. The standards for the strategic planning and alignment system require an agency to ensure their human capital management strategies, plans, and practices—

   1. (1) Integrate strategic plans, annual performance plans and goals, and other relevant budget, finance, and acquisition plans;
   2. (2) Contain measurable and observable performance targets; and
   3. (3) Communicate in an open and transparent manner to facilitate cross-agency collaboration to achieve mission objectives.

2. (b) Talent management. A system that promotes a high-performing workforce, identifies and closes skill gaps, and implements and maintains programs to attract, acquire, develop, promote, and retain quality and diverse talent. The standards for the talent management system require an agency to—

   1. (1) Plan for and manage current and future workforce needs;
   2. (2) Design, develop, and implement proven strategies and techniques and practices to attract, hire, develop, and retain talent; and
   3. (3) Make progress toward closing any knowledge, skill, and competency gaps throughout the agency.

3. (c) Performance culture. A system that engages, develops, and inspires a diverse, high-performing workforce by creating, implementing, and maintaining effective performance management strategies, practices, and activities that support mission objectives. The standards for the performance culture system require an agency to have—

   1. (1) Strategies and processes to foster a culture of engagement and collaboration;
   2. (2) A diverse, results-oriented, high-performing workforce; and
   3. (3) A performance management system that differentiates levels of performance of staff, provides regular feedback, and links individual performance to organizational goals.

4. (d) Evaluation. A system that contributes to agency performance by monitoring and evaluating outcomes of its human capital management strategies, policies, programs, and activities by meeting the following standards—

   1. (1) Ensuring compliance with merit system principles; and
   2. (2) Identifying, implementing, and monitoring process improvements.