ritchie_Got Skills Managing the Skills Gap in your organization_5_18_16

Got Skills?Managing the Skills Gap in your Organization.

Gordon Ritchie, Offering Manager and Product EvangelistMay 18th, 2016

© 2016 IBM Corporation2

Agenda

1. No One Talks about the Competency Gap2. Redefining work and connecting skills to results3. Four steps to skills management4. Conclusion


ONE: NO ONE TALKS ABOUT “THE COMPETENCY GAP”

Define the skills your enterprise will need in the future, as industries converge and ecosystems predominate. Bring in new and necessary talent. Any enterprise that follows these steps will be in a much better position to navigate the tempestuous winds of disruption and lead like a Torchbearer.

2016 Insights from the Global – The CEO PerspectiveIBM Institute of Business Value

© 2016 IBM Corporation4 4

WHAT ANALYSTS SAY AND HAVE BEEN SAYING…

“…are the currency of Talent Management”, Josh Bersin, 2007

“Skills are the new arms race; our newest research shows that nearly 70 percent of global organizations feel they lack the required skills to compete..” Building a Smarter Workforce, 2013

“..the most critical, foundational component of the roadmap is the establishment of job responsibilities and competencies… If those initial foundational elements are missing, then the rest of the organization’s structures are prone to inconsistency.” Integrated Talent Management: A Roadmap for Success, 2012

“… companies realize they cannot solve their skills shortages externally. To achieve competitive advantage, they must commit to developing the right skills internally” Corporate Learning Factbook, 2012

SHRM reported in their 2013 Employee Job Satisfaction survey that being recognized for the skills you have is now the #1 employee job satisfaction issue, above pay, benefits, etc.


Show me the Skills

Source: 2014 IBM CHRO study: New Expectations for a New Era: CHRO insights from the Global C-Suite Study

% of CHROs

Talent Development

Employee Engagement

Talent Retention

Workforce Productivity

Sourcing & Recruiting

87%

80%

68%

65%

60%

CHROs find developing talent to be their largest workforce challenge

• 66% anticipate losing business to competitors

• 64% fear a loss of revenue

• 53% anticipate delays in innovation

• 59% face lower customer satisfaction

• 87% say their employees feel more pressure/stress

Accenture 2013 Skills and Employment Trends Survey

CEOs fear gaps in their current talent will directly impact customer success:

90% of organizations DO NOT have the SKILLS they need to be successful!


How is this being addressed? Learning and Hiring…

1 Bersin Corporate Learning Factbook

To address talent gaps at all levels, organizations have directly increased their L&D budgets by 11% since 20131

Corporate L&D spending topped $130 billion yet many don’t know where this spend is focused1

identify and address gaps – adding precision to guide the Learning or make informed Hiring Decisions


Not an HR issue, a business survival issue

Competency Framework Development: Buy vs Build?• 7,000 Job Descriptions, 180,000

People- Average tenure is 12 years, 22 if you don’t

count people working in call centers.- Integrated across SuccessFactors and SABA- 9 Months start to finish- Sponsored by Recruitment, Org

Development, Learning and Development and Compensation

Gearing Up for the Cloud, AT&T Tells Its Workers: Adapt, or Else• Skills 8: Competencies 0• Vision 2020

- Complete its cloud based software transformation: IoT, phones, satellite television and huge volumes of data

- combines online and classroom-based course work in subjects like digital networking and data science, as well as a look at old skills that can be transferred to new careers.

- internal website where employees can enter their job titles, see what types of careers might be available in a software-driven company, and what courses they need to take to get them.

- a year into the program, over half of the work force, mostly managers, has started training, sometimes with dozens of short online courses

http://www.nytimes.com/2016/02/14/technology/gearing-up-for-the-cloud-att-tells-its-workers-adapt-or-else.html?_r=0





Reinventing how and where we talk about a job

• A linked framework of the skills needed to be successful in delivering the business results required, and tools to develop and do better.

• A Blueprint of the talent you require to continue to be successful.

http://www.bersin.com/blog/post/The-End-of-a-Job-as-We-Know-It.aspx


TWO: REDEFINING WORK AND CONNECTING SKILLS TO RESULTS


How do we usually define work? Job Descriptions

Regulatory, Legal ADA, FLSA, EPA, SEC, TJC…..

Job Postings Why work for us? What we mean by an Accountant:1

Survey Matching What does the survey define as an Accountant:1 as

and is that the same as ours?

DEFENSIBILTY, RECRUITMENT, COMPENSATION

So how much do we value or invest in a job description? $5, $50 or $5,000?


What is meant by “skills”?

Aptitude or Ability? Capability or performance? Behaviours? Competency or Values? Education/Schooling? Time served in a role What is meant by “gap”?

A gap is a measure of distance between two points.

To have a gap, you need to know A) the start pointB) the end point

Skill Innovation

Definition Develops new ideas and initiatives that improve the organization's performance.

Level 2:Working

Experience

Seeks new or non-traditional ideas to improve effectiveness in own area of responsibility.

Participates in efforts to develop ideas generated by team members.

Seeks applicable new ideas and approaches.

Surfaces ideas from other groups that have applicability to the team.

Helps develop implementation plans for introducing innovations to the group.

Level 3: Extensive Experience

Encourages exploration of non-traditional ideas from team members.

Seeks new or non-traditional ideas to improve effectiveness in team's area of responsibility.

Fosters a team culture that encourages exploration of non-traditional ideas.

Guides team members in the development and fulfillment of proposed innovations.

Develops change initiatives that target improvement of significant organizational capabilities.

Implements strategies for renewing or deepening change efforts.


3 Questions to Ask about how you define, value and equip your workforce?

What are the organization’s

strategic priorities?

What are the critical skills required to get

the job done?

Does the workforce already possess those capabilities, and if not, do we develop or hire?


Connecting Skills to Business: Examples of Potential Impact

Career Impact: Turnover

80,000 employees - limited career opportunities for 10,000 EEs in key role – results in high turnover: 30%

3,000 employees replaced on an annual basis @ an average cost to replace @ $50K yields:

$150M in turnover costs

READINESS: KEY ROLE

By highlighting career pathways/competencies required for succession we can reduce turnover by 1 point to 29% means replacing 100 fewer EEs

Savings of over $5M in annual cost

Innovation: Hiring Costs

25,000 employees across 15 countries

Major focus on creating a new product line that is highly innovative

Current resources are unknown – need 10 new headcount

READINESS: INNOVATION

By highlighting current strengths/qualifications within the organization; identified 8 internal resources that have the right technical skills

Saved external hiring costs of $600K for 8 employees @ $75K per employee

Training: Sales

200 sales people in key position

Mandatory training required annually over 2 days @ 8 hours per day

Average sales of $10,000 per day ($2.4M per year)

READINESS: SALES

By assessing current proficiency on required skills and only training on specific skills saves 1 day of training each sales person

If 200 sales people are back on the floor selling during that day yields $2M in increased sales on an annual basis


Focus on impact

• Culture

• Alignment

• Direction

• Operation

• Execution

• Customer Engagement $$$$$$$$$$$$$$$$$$


THREE: FOUR STEPS TO SKILLS MANAGEMENT


SUCCESS FROM FOCUSING ON THE JOB AT HAND

Develop and use quickly and update over time. Focus on buy-in and change management

processes. Make sure you get to the application; don’t get stuck

in model development

Get the “big things right”; “don’t dwell on the small stuff”.

Apply existing materials and best practices in developing a rapid draft

Focus on the overall architecture

Clear success criteria and themes.

Models for learning how to change behaviors (vs. a perfect output image).

Demonstrate prototypes

application Integration

IterationLaunch &

Communication ImplementationIBM Talent Frameworks Development

80% of the effortRecommended Approach 20% of the effort

Typical Competency Developmentapplication Integration

Iteration

Launch & Communication

Implementation

20% of the effort (if able to move out of development stage)

Typical Approach 80% of the effort


Skills Management Process

VERIFY / ASSESS : Self-assessment of

proficiency with manager verification / Testing of job-

based skills through Assessments

WORKFORCE READINESS: Enable action through employee

and organizational views of talent

IDENTIFY REQUIREMENTS FOR

TALENT SUCCESS: Enables mapping and validation of jobs to

competencies

ANALYZE AND IDENTIFY TALENT

GAPS: Talent gap reporting, skills

matches, reporting by competency

Validate Skills Outcomes

requirements for success

Gaps in proficiency, capability, and coverage are

identified

Workforce Readiness planning

is enabled at individual and organizational

levels

Confirm competency

proficiency utilizing multiple

approaches

Identify and Address Talent Gaps by to Build a Global Supply Chain of Capabilities


Map Competencies and Skills Required For Each Job Role

IDENTIFY REQUIREMENTS FOR

TALENT SUCCESS: Enables mapping and validation of jobs to

competencies

Identify linkages between organizational roles and key competencies and skills across a consistent job reference architecture

IBM Kenexa Talent Frameworks provide:• Ready-to-use job descriptions• Job specific competencies• Proficiency-based behavioral statements• Development goals• Coaching tips, and • Interview Questions aligned to the competencies • Multiple learning formats mapped to specific

competencies

Ensure skills definitions is used across development planning, succession planning, hiring, performance management, and learning management


• Functional area with in each industry or expertise

• 6 Job Bands for employees, management and executive matrices

• Job descriptions• Job profiles• Job responsibilities• Job focus• Compensation Market Data

Business – 36Individual – 28Management – 22Leadership – 32Functional/Technical – 2,000+

4 Levels of Proficiency with 21 unique behavioral descriptors for action oriented skill observation, evaluation and communication.

Each competency has a suggested level of proficiency used for each role.

Competencies (2,000+) Application Accelerators

• Learning References (OJT, Web, References, professional bodies, etc.)

• SMART Development Goals• Coaching Tips• Performance Feedback Writing

Assistants• Interview Questions

Designed to engage and optimize use In context. Extends the application of the competency model to support models such as the 70/20/10.

• General Corporate Functions (HR, Finance, Legal, Sales, etc)

• Information Technology (IT) Operations (Agile, Cloud, Security, Mobile, etc)

Job Families (185+)

Jobs Profiles (2,500+)

Industry Frameworks General Competency Frameworks• Banking & Financial Services • OEM Software• Construction • Insurance• Consulting Services • Manufacturing• CRM Call Center • Media and Publishing• Education • Pharmaceutical• Energy • Real Estate• Healthcare • Retail• Hospitality • Telecommunications• OEM Hardware Manufacturing

IBM Kenexa Talent Frameworks: Jump Start


Assess and Verify Proficiency

VERIFY / ASSESS COMPETENCIES:

Self-assessment of proficiency with manager

verification / Testing of job-based skills through

Assessments

Confirm proficiency across critical job-relevant competencies utilizing multiple approaches

Confirm required skills.

Employee self-assessment of proficiency levels across skills with verification


Analyze Competency Results to Identify and Illustrate Gaps

ANALYZE AND IDENTIFY TALENT

GAPS: Talent gap reporting, skills

matches, reporting by competency

Gaps in proficiency, capability, and coverage are identified

Employee Competency Gap Analysis:Identify which employees require the

greatest development and which competencies should they target

Organizational Competency Gap Analysis:Identify competency gaps by function / team

which would prevent meeting business objectives

Subject Matter Identification:Identify peak proficiency across the organization


Informed Action to Address Gaps at Individual and Organizational Levels

WORKFORCE READINESS: Enable action through employee

and organizational views of talent

Workforce Readiness planning is enabled at individual and organizational levels

Identify and define functional or cross group career pathways

Job and career planning enables efficient identification of target jobs, core skills

needed, and proficiency required for any job

Employees can act on results to plan competency-based learning activities and schedule according to priority


FOUR: CONCLUSION


A Skills Based Job or Talent Frameworks connects…

Attracting Candidates

Hiring Decisions

On boarding Managing

Engagement Performance management Development Compensation

planning

Set expectations of who will be successful in the

job beyond a job description

Smarter hiring decisions based on capability to do the

job

Improve chance of success and retention

with accelerated time to productivity

Support managers development

discussions with tools to improve trust and

impact.

Provide clear view of portable/mobile

skills to engage the engageable.

Provide job specific performance criteria for

evaluation and contribution.

Drive up learning as its easier to find

content in your LMS

Understand the jobs you are matching

beyond just the salary survey job title.


SMART Goals Competencies, Skills, Behaviors

Cross-functional Skill Mobility

Interview Questions

Learning Suggestions

Coaching TipsPerformance Feedback Help

IBM Talent Frameworks Job Profiles

Career Paths and Job Levels

Example: The SuccessFactors Cloud

© 2016 IBM Corporation26 26

12 SKILLS MANAGEMENT BEST PRACTICES TODAY

Model Building1. Ensure linkage between competencies and skills with organization strategies2. Keep models simple at launch3. Add dimensional criteria and keep the momentum4. Don’t start from scratch: buy Skills Dictionary or Talent Framework

Applications5. Focus on assessment and development first, then evaluation and pay applications6. Integrate of the competencies with all processes, even if tools aren’t7. Ensure consistency of applications rather than allowing too many variations

Change Management8. Clarify and communicate specific objectives of your applications up front9. Ensure top management and line management buy-in and ongoing support10. Be focused in implementation (i.e., one function, one pilot group first)11. Provide training and communication more consistently and carefully (building in training at all

stages of implementation)12. Develop and consistently apply a measurement system used to evaluate the effectiveness of

implementation over time


Future of HR Systems

• https://www.ibm.com/blogs/smarter-workforce/2015/11/exploring-a-newwaytowork-ibm-and-outside-influencers-predict-the-future-of-hr/• http://www.hr.com/en/app/blog/2015/12/the-future-of-hr-in-2016_iia7skny.html?cm_mc_uid=40912972335514151088464&cm_mc_sid_50200000=1

450364170• http://www.bersin.com/News/EventDetails.aspx?id=19402

Josh Bersin: two thirds of us are overwhelmed and our companies are not sure what to do about it. Improving the work experience is a top priority. Makes systems easier to use as “systems of engagement’. Engagement is an always on issue. Shift from HR centric to Employee Centric

ConsumerizationPersonalization

Employee CentricSystems of engagement

https://www.ibm.com/blogs/smarter-workforce/2015/11/exploring-a-newwaytowork-ibm-and-outside-influencers-predict-the-future-of-hr/

http://www.hr.com/en/app/blog/2015/12/the-future-of-hr-in-2016_iia7skny.html?cm_mc_uid=40912972335514151088464&cm_mc_sid_50200000=1450364170

http://www.hr.com/en/app/blog/2015/12/the-future-of-hr-in-2016_iia7skny.html?cm_mc_uid=40912972335514151088464&cm_mc_sid_50200000=1450364170

http://www.bersin.com/News/EventDetails.aspx?id=19402


Help Pull the people levers that drive the business measures

• Describe the skills a worker needs to demonstrate to be successful.• Ensure they are aligned to the business measures of success• Focus on making skills accessible for people to connect on their job and use them for:

- Hiring with better Interview guides- Development with Coaching guides- Career Planning with transparent career matrices- Growth with Prescriptive Learning Plans- Focused management in agile performance discussions

“Mind the gap”

Got Skills?Managing the Skills Gap in your Organization.

Gordon Ritchie, Offering Manager and Product [email protected]

Documents

ritchie_Got Skills Managing the Skills Gap in your organization_5_18_16