# Tennessee Civil Service Reform **Name:** Tennessee Excellence, Accountability and Management (TEAM) Act **What is it:** State-level civil service reform legislation and multi-year implementation process that transformed Tennessee's personnel system **Who is involved:** Initiated by Governor Bill Haslam (Republican, 2011-2019), implemented by HR Commissioner [Rebecca Hunter](https://naspe.memberclicks.net/leadership-hunter) **Location:** Tennessee, United States **Link:** Multiple resources documenting the reform between 2012-2019. Sources: [1](https://www.govexec.com/management/2019/05/one-states-proven-strategy-civil-service-reform/156773/), [2](https://www.governing.com/archive/gov-tennessee-civil-service-reform.html), [3](https://www.governing.com/columns/col-civil-service-reform-tennessee.html), [4](https://www.govexec.com/management/2019/01/what-federal-hr-could-learn-tennessees-reforms/154074/), [5](https://chiefhro.com/2025/09/09/learning-from-tennessee-a-blueprint-for-federal-civil-service-reform/) and [6](https://travisadr.com/wp-content/uploads/2020/07/TEAM-Act-TN-TBA.pdf) --- **Context and motivation (2011):** Tennessee's civil service law dated to 1939. When [Governor Haslam](https://www.tn.gov/former-governor-haslam/about-bill-haslam.html) took office in 2011, 40% of state workforce eligible to retire within five years. Hiring process used antiquated point-based registry system where managers had to hire from top five scorers regardless of actual job fit. Promotions restricted to three most senior candidates. Seniority determined layoff order through "bumping" system. State known as laggard in employment practices. Haslam was former business executive (Pilot Corporation) and mayor of Knoxville, brought private sector management perspective. **Pre-reform consultation process (2011):** Three parallel initiatives built case for reform. First, each Cabinet member conducted top-to-bottom agency review asking whether services could be provided more effectively - and all 23 Cabinet members identified HR practices as barrier to performance. Second, Finance Commissioner surveyed all executive branch agencies for recommendations on effectiveness/efficiency, receiving ~700 responses, nearly half citing need to fix employment practices. Third, Deputy Governor and HR Commissioner Hunter conducted statewide employee listening tour asking managers how to recruit and retain talent. Managers repeatedly said same inadequate candidates kept appearing on applicant lists. **Legislative process (2011-2012):** Hunter and team developed legislation in consultation with Governor's office and agency heads. Hunter personally met with each legislator. Tennessee State Employees Association (non-union employee association) initially opposed, walked away from negotiations, then returned after employee mobilization. Key concession: seniority maintained as factor in layoffs alongside performance, not eliminated entirely. TSEA secured seat at table for rule development and performance evaluation system design. Bill passed April 2012 with TSEA support. **Core reforms enacted:** Replaced registry hiring system with knowledge/skills/competencies-based selection requiring minimum three candidates. Abolished numerical performance ratings, mandated SMART goals (specific, measurable, achievable, relevant, time-sensitive) for all employees aligned to agency and gubernatorial priorities. Created two personnel systems: - (1) the executive service (at-will senior positions), and - (2) the preferred service (middle management/frontline with streamlined appeals). Made performance primary factor in layoffs, with seniority as secondary consideration. Ended bumping practice. Reduced layoff notice to 30 days. Maintained veteran hiring preference when candidates equal in experience/skill. Later eliminated step increases, linked pay to performance ratings with bonuses for top tiers. **Implementation approach (2012-2015):** Three-year phased rollout, not attempted all at once. Year one focused on performance management, year two on compensation. State invested heavily in training and coaching managers, securing continuous feedback from managers and employees to adjust approach. Hunter's team used Four Disciplines of Execution (4DX) framework to maintain focus on implementation goals while handling ongoing operational whirlwind. To drive a cohesive, systems-based approach to management, Hunter also adopted a rigorous, nationally recognized framework for organizational performance known as the **Baldrige Performance Excellence Program**. This was implemented through its state-level partner, the [Tennessee Center for Performance Excellence](https://tncpe.org/) (TNCPE). Commissioner Hunter led by example, becoming a certified examiner for the program in 2014 to master these standards, and established the role of _[Chief Learning Officer (CLO)](https://patimes.org/the-case-for-broadening-the-strategy-to-reform-civil-service/)_ in 2012 to prioritize workforce development. **HR transformation strategy:** Elevated HR Commissioner to Cabinet-level position reporting directly to Governor, equal footing with agency heads. Reoriented department from "agency of no" to customer-focused problem solvers. Created four-tier supervisor certification program, Level 1 mandatory for new supervisors. Established 26 agency-specific leadership academies recognizing each agency has distinct culture and workforce challenges. Launched _[Tennessee Government Leadership Council](https://www.tn.gov/hr/l/hr-tn-government-leadership/tgl-council.html)_ as strategic think tank for statewide employee initiatives. Created Chief Learning Officer position, first in nation for state government. Convened HR Directors and Learning & Development leaders monthly for collaboration rather than top-down mandates... HR Directors don't report to the HR Commissioner so must lead through influence. **Workforce development programs:** Expanded from three statewide leadership programs in 2011 to five, plus 23 individual agency leadership academies. Created Three Pillars of Human Resources entry-level certificate for HR staff (2012, with Tennessee Personnel Management Association). Launched HR Master Series year-long development program based on IPMA-HR and SHRM competencies (2014, won NASPE Advancing the HR Profession Award 2015). Annual leadership conference for alumni. Black Belt leadership program. Leadership book clubs. Toastmasters for state leaders. "How to Facilitate" certification developed with local university. Fundamentals of Facilitation course (increased pass rate from 38% to 83%). All programs require competitive selection, not automatic enrollment. **Operational specifics:** ~42,000 state employees supported by ~500 HR employees (1:84 ratio). Shared services model. Customer satisfaction rating for HR exceeds 80%. Appeals process reduced from 18 months to required 60 days (15-day filing, 30-day HR ruling, 15-day arbitration). Average hiring time 30-45 days (not formally tracked because customer satisfaction so high). 96% transactional accuracy rate. Monthly HR dashboard with metrics on service levels, operations, bench strength, demographics, engagement, talent management, performance, satisfaction—benchmarked against private sector. Position descriptions rewritten with university support to include competencies and job skill requirements. Market-based pay system designed with compensation consulting firm, resulted in salary increases up to 4.8% for some occupations. **Performance management in practice:** Originally 85% of employees rated 4 or 5 on five-tier scale without accountability. Post-reform, all employees have SMART goals aligned to departmental strategic/operational goals, which align to Governor's priorities, so employees see how work contributes to bigger picture. State practiced writing SMART goals for three years before implementing pay for performance. Paid performance bonuses for three consecutive years to top two tiers. Performance management system so successful that state eliminated formal telework policy—employees telework but judged on output/outcomes not location. Managers can promote, demote, and more easily remove employees when necessary. **Recognition and sustainability:** Department of Human Resources won Tennessee Center for Performance Excellence Commitment Award (2016) and Achievement Award Level 3 of 4 (2018)—unusual for HR function to drive performance excellence from business perspective. Federal officials visited Tennessee in 2019 to study model. Frequently cited in federal reform debates. Governor's direct championship and eight-year commitment (2011-2019) created lasting culture change. Employee engagement survey participation 95% with 95% recommending state as great place to work. **Critical success factors identified by observers:** Executive leadership commitment from Governor who made it priority; HR Commissioner with operational credibility (CPA background, finance experience) elevated to Cabinet level; extensive pre-reform consultation building coalition; negotiation with employee association rather than confrontation; multi-year phased implementation with continuous training/feedback; investment in workforce development not just compliance; customer service orientation transforming HR reputation; use of management frameworks (4DX, Baldrige); agency-specific approaches recognizing different cultures; lead through influence model since HR Directors don't report centrally; performance management embedded in law to avoid "HR made me do it"; linking outcomes to citizen services creating purpose; transparency through dashboards and metrics. **Comparison to other state reforms:** [Unlike Georgia](https://manhattan.institute/article/radical-civil-service-reform-is-not-radical-lessons-for-the-federal-government-from-the-states) (eliminated all civil service protections 1996, created at-will employment for all new hires) or Florida (more aggressive approach), Tennessee maintained preferred service category with streamlined appeals rather than full at-will. More gradual, consultative approach than Georgia/Florida. Unlike [Wisconsin Act 10](https://morganfoy.github.io/papers/Foy_JMP.pdf) (2011, confrontational union-stripping), Tennessee negotiated with employee association.