OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
SUPERVISION AND REGULATION
January 10, 2001
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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 |
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| DIVISION OF BANKING SUPERVISION AND REGULATION |
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| SR 01-2 (SUP) January 10, 2001 |
The Federal Reserve System is instituting changes to its career enhancement programs for examination and supervisory staff to provide more opportunities for continuing professional growth and development. While the System has a well established training program, the rapid pace of change in the financial services industry calls for offering continuous education and career development that go beyond the traditional classroom-based instruction. The enhancements to our program will provide staff with improved access to a broader and more relevant selection of development opportunities. Toward that end, the Federal Reserve's supervision function has designed a framework that will allow the Reserve Banks and the Board to institute continuing professional development programs that meet Systemwide supervision mandates, while also accommodating local needs. This framework should enable employees to identify advancement opportunities and to map out development activities that are consistent with their personal career objectives and the needs of the supervision function. Many of the Reserve Banks have already begun implementing various aspects of this framework. The remaining Reserve Banks and the Board's Divisions of Banking Supervision and Regulation and Consumer and Community Affairs will be instituting these initiatives over the next few months. The attached statement, prepared by the supervision function's Staff Development/Utilization and System Performance Subcommittee, provides details on the framework together with an implementation schedule. The success of these career development initiatives will be critical to ensuring that the Federal Reserve is able to remain an attractive workplace for highly motivated professionals and foster an environment of career building that produces leadership for the future. Further, these new initiatives will enable examination and supervisory staff to be highly effective and motivated in today's highly challenging and rapidly changing financial and regulatory environment. If you have questions regarding this training initiative, please contact Sid Sussan, Advisor, at (202) 452-2638, or Michael Collins, Senior Vice President, Federal Reserve Bank of Philadelphia, at (215) 574-4142.
Framework for Introduction The Federal Reserve System is adopting a continuing professional development (CPD) framework for professionals in the supervision function. The framework requires that each Reserve Bank and the Board develop and implement a local CPD program. To ensure effective implementation of the framework, a Systemwide Career and Human Resource Development Group (CHRD Group) has been established to oversee implementation and to design a website featuring an on-line catalogue of development opportunities.1 The CHRD Group will work with the various System committees established to support the supervision business lines (i.e., large complex banking organizations, community banking organizations, consumer compliance, and specialized activities). In addition, this Group will collaborate with the recently established knowledge center for insurance and the competency centers for private equity/merchant banking and economic capital assessment, as well as with the System's human resource managers, to provide professional staff with access to the broadest selection of development opportunities. The Framework The continuing professional development framework recognizes that the System's greatest resources are its skilled and knowledgeable employees. While the System already has a strong core training program leading to examiner commissioning and has several post-commissioning programs, offered internally and by the FFIEC, this new framework will support professional staff with additional opportunities to develop and upgrade skills necessary to fulfill the System's supervision mission. The framework seeks to facilitate the development, retention, and hiring of skilled staff by making available on-going learning experiences and fostering a work culture that ensures the System's ability to meet challenges in a dynamic, global supervisory environment. In addition, the framework advances the System's strategic objective of fostering a cultural shift toward increasingly flexible and diverse careers for professional staff. Professional staff members will be individually accountable for identifying their own development opportunities in pursuing further career development and advancement. While an employee's success is based on actual job performance, the Reserve Banks' and Board's continuing professional development programs should provide staff with ample opportunities to enhance their skills and knowledge in order to further their careers.
Strategy and Approach In consultation with the various System committees, the CHRD Group will oversee the implementation of the framework. This level of oversight will ensure that the Reserve Banks' and the Board's continuing professional development programs are aligned with the System's strategic direction and the needs of the individual business lines. The strategy supports the System's objective to evolve towards a culture that more formally emphasizes continuous learning. Accordingly, the CHRD Group will provide each Reserve Bank and the Board with a framework that promotes a fundamental level of consistency in terms of content and approach, while affording individual Reserve Banks and the Board the necessary autonomy to identify and meet local needs. In addition, the CHRD Group will develop and implement an on-line catalogue, in the form of a website that will list Systemwide career development opportunities. The framework is based on the belief that learning (i) supports strategic business objectives; (ii) is a personal responsibility to be supported by front-line managers and available resources; and (iii) comes from a variety of experiences beyond formal classroom instruction. The approach implicitly recognizes that all staff members must continually advance and refine their skills and knowledge if the Federal Reserve is to retain its ability to effectively function in a dynamic supervisory environment. The CHRD Group is also responsible for establishing fundamental parameters for measuring the success of both the Reserve Banks' and the Board's continuing professional development programs and the System on-line catalogue. A combination of surveys, horizontal reviews, and annual evaluation programs are planned as part of the evaluation process. Representatives from the Reserve Banks and the Board will participate in measuring the effectiveness of the overall framework. Expectations for Local Programs Training staff from the supervision function will be expected to work with the various System committees and the CHRD Group to establish an effective continuing professional development program at each Reserve Bank and the Board's Divisions of Banking Supervision and Regulation and Consumer and Community Affairs. To provide each Reserve Bank and the Board with the flexibility to design a program that meets unique local needs, the framework sets forth broad parameters for establishing the local program, including:
Development Opportunities When designing and implementing individual continuing professional development programs, the Reserve Banks and Board will offer a range of learning opportunities. These development opportunities should enhance the ability of staff to better function in their positions and prepare for new challenges consistent with System and Reserve Bank business strategies. Traditionally, the Federal Reserve's continuing professional development activities have been centered on classroom-styled programs. However, more recently, efforts have been made to offer a broader array of learning materials via self-directed or computer-based learning. These activities, offered by the System or externally, are only one component of continuing professional development. Within the System, many other career development activities such as job rotation, cross training, participation in work groups and committees, and teaching classes are currently offered. In broader terms, continuing professional development might also include mentoring, public speaking, and industry immersion programs. The opportunities will be posted to the System on-line catalogue, allowing individuals to meet their own needs within strategic and fiscal constraints. On-line Catalogue In conjunction with its oversight responsibilities for the framework, the CHRD Group will develop and maintain a continuing professional development website featuring an on-line catalogue of materials and opportunities. The on-line catalogue will be the repository for Systemwide development opportunities that will supplement local Reserve Bank and Board programs. The catalogue will provide information about technical and non-technical development opportunities available to staff members to enhance their industry and supervisory knowledge, leadership and management skills, and behavioral and technical skills. It will include development opportunities inside and outside the System. To ensure the appropriate depth and breadth of the framework, professional staff will be expected to assist the CHRD Group in identifying and evaluating continuing professional development opportunities for posting to the on-line catalogue. Future Steps While several Reserve Banks have already taken steps to implement local continuing professional development programs, most Reserve Banks and the Board are just beginning to formalize their continuing professional development efforts. In recognition that the Reserve Banks and the Board may be at different stages in providing continuing professional development activities, the framework will be implemented in phases. First, the web-based, on-line catalogue of continuing professional development opportunities will be piloted in January 2001. Appropriate training on the use of the on-line catalogue will be provided in early 2001. Second, each Reserve Bank and the Board's Divisions of Banking Supervision and Regulation and Consumer and Community Affairs are expected to implement local continuing professional development programs, incorporating the parameters outlined above, by July 31, 2001. Third, local programs should be fully implemented by December 31, 2001. The effectiveness of the on-line catalogue and the local continuing professional development programs will be evaluated during the latter part of 2002 and the early part of 2003.
Notes: 1. The Federal Reserve Bank of Philadelphia is the initial chair of the CHRD Group, with support from staff at the Federal Reserve Banks of Philadelphia and Minneapolis. Group members include officers and staff of the Federal Reserve Banks of Atlanta, Chicago, Kansas City, Dallas, and San Francisco, and the Board’s Divisions of Banking Supervision and Regulation and Consumer and Community Affairs. Return to text
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SR letters | 2001
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