talent management - the pcmm way

Talent Management-The

PCMM way

2© 2015 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Talent Management

Talent management is the science of using strategic human resource planning to improve business value and to make it possible for companies and organizations to reach their goals.

Everything done to recruit, retain, develop, reward and make people perform forms a part of talent management as well as strategic workforce planning. A talent-management strategy needs to link to business strategyto make sense

Talent Management-The PCMM way

Core People Issues


Core People Issues

Staffing and talent management

Compensation

Source: Future Insights, SHRM 09-700 (2009)

Multiple generations in the workplace

Performance Management

Work/life balance


Source: Towers Watson 2014 Global Workforce Study

Engagement Segments



Top Drivers for Sustainable Engagement



Attraction and Retention Drivers


Who’s Managing the Organization’s Assets?

“Our greatest asset is our People”Yet, many organizations leave the management of their greatest asset, to “managers”, who have limited experience, skills, or information to be effective managers.

Managers impact

• perception of the organization

— manager represents the company

• retention

— people leave manager first, company second

• performance

• morale

• unit‘s bottom-line


The “Manager”: A People CMM Perspective

A manager• accepts stewardship of a resource

• provides technical and administrative direction and control to individual performing tasks

• develops and optimizes the conditions affecting success

• plans, resources, and controls work within their responsibility

Many “types” of managers• senior manager, middle manager line manager, team leader, etc.


Biggest Challenges Facing HR ExecutivesIn the coming 10 years

49%

43%

Retaining and rewarding the best people

Creating a corporate culture that attracts thebest people to our organization

Finding people with the increasingly specialized skills we need

Developing the next generation ofcorporate leaders

Breaking down cultural barriers that make itdifficult to create a truly global company

Remaining competitive in the talent marketplace

Creating smooth and efficient HR processesthat ensure a good employee experience

Creating an employee-centric,service-oriented HR organization

Other (1%) and Don’t know (3%)

32%Finding the right people in the right markets

where we do business around the world

39%

28%

23%

20%

16%

12%

4%

PCMM Maturity Framework


PCMM Maturity Framework

Humphrey (1989), Paulk et al. (1995), Cutis et al. (1995)

Managedpractices

Tailoredpractices

Measuredand aligned

practices

Continuouslyimprovingpractices

Peoplemanagement

Competencemanagement

Teammanagement

Capabilitymanagement

Level 1Initial

Level 2Managed

Level 3Defined

Level 4Predictable

Level 5Optimizing


People CMM Architecture

1Initial

2Managed

Managers take responsibility formanaging and developing their people

CompensationTraining & DevelopmentPerformance ManagementStaffingCommunication & Co-ordinationWork Environment

3Defined

Organization develops aframework of workforce Competencies required to accomplish its business objectives

Participatory CultureWorkgroup DevelopmentCompetency-Based PracticesCareer DevelopmentCompetency DevelopmentWorkforce PlanningCompetency Analysis

4Predictable

Capability is managed quantitatively and the organization exploitsits opportunities in its competency framework

MentoringOrganizational Capability ManagementQuantitative Performance ManagementEmpowered workgroupCompetency-Based AssetsCompetency Integration

5Optimizing

Capability and performance continually improved

Continuous Workforce InnovationOrganizational Performance AlignmentContinuous Capability Improvement

Level Focus Key Process Areas


Threads in the People CMM

Levels Developing Competency

Building workgroups & culture

Motivating & managing performance

Shaping the workforce

5

Optimizing

Continuous Capability Improvement Organizational Performance Alignment

Continuous workforce Innovation

4

Predictable

Competency based assets

Mentoring

Competency Integration

Empowered Workgroups

Quantitative Performance Management

Organizational Capability

Management

3

Defined

Competency Development

Competency Analysis

Workgroup Development

Participatory Culture

Competency based practices

Career Development

Workforce Planning

2

Managed

Training and Development

Communication & Coordination

Compensation

Performance Management

Work environment

Staffing

Getting Started


SEI IDEALSM Model

Establishimprove-

ment infra-structure

Learning

Establishing

Acting

Stimulusfor

changeSet

contextBuild

sponsor-ship

Character-ize current& desiredstates

Developrecommen-

dationsSet

priorities Developapproach

Planactions

Createsolution

Pilot testsolution

Refinesolution

Implementsolution

Analyzeand

validatePropose

futureactions

Diagnosing

Initiating

SM IDEAL is a service mark of Carnegie Mellon University

A Few Experiences


A Famous Aviation Company…..

Employee Satisfaction Index increased by 15%

Customer satisfaction has remained high – current year to date satisfaction index is 7.6 on a 10 point scale

Post Release Defects reduced by 50%Rework Ratio reduced by 15%Labor Effort Variation reduced by 35%Schedule Variation reduced by 38%

Say ItDo It

Prove ItImprove It


A Renowned Pharma company…

Thorhauge (2000)

Improved communication at all levels :interrelated goals at all levelsIT tool for documenting goals & formal feedback

High employee satisfaction:Participation in Employee satisfaction survey significantly increasedSatisfaction index observed to have increased by 45%

Staffing process redesigned:shorten time-to-offerimproved rate of acceptance


A Reputed IT Organization…

“How we the People CMM to Improve Workforce Practices”“After investigating several different ideas, we decided the People CMM was the most appropriate for our objectives of developing a world-class workforce and organizational capabilities for IT by strategically shaping our future workforce and influencing our partners and industry. The People CMM assessment conducted in the third quarter of every year provides IT with a strategic road map for implementing areas for improvement.”

BenefitsClearly defined jobs with skill requirementsSkill gaps filled with job-specific training and nurturing individual accountabilityImproved employee job classification and matchingLong-range career planning capabilityHigh Quality communication acrossIncreased employee satisfaction


A Recognized hospitality company…

Tangible Benefits

Improved customer satisfaction

• Decrease in negative remarks (12% to 7.8%)• Increase in positive remarks (66% to 74%)• Increase in guest scores in all departments

Reduced operational costs

• Reduced recruitment costs• Attrition rate reduce from 4.5% to 1.5%

Improved objective performance scores

• Appraisal scores improved over three quarters, with greater consistency across departments

Established a “knowledge bank”

• Establish a forum to share experiences and learn from each other on a continuing basis

• Knowledge bank is updated on an event driven basis and leanings are shared and put into practice

Tangible Benefit Example Results


A Recognized hospitality company…

Intangible Benefits

Employee morale • Fall in attrition rate• Better feedback on training and orientation activities

Greater cross-level interaction

• Increase in voluntary participation• Constructive debates on important issues

Rise in participation • Increase volunteering to committees• Increase delegation in decision-making processes

Organizational culture positive and open

• Clarity on unit processes and policies• Level of interaction during orientation sessions

Intangible Benefit Example Results


The Most Admired & Largest IT Consulting Company...Why People CMM?• Company was experiencing rapid growth and needed to establish a

measurable, repeatable, and predictable employment experience for its people and processes

• Linking business outcomes to people practices

• The need to increase employee engagement and attract talent

• The need to develop distinctive capabilities

• Reduce risks associated with rapid growth

• To establish a capability development framework

• Increase employee engagement


Implementation Approach• Strong endorsement from the global leadership of its business operations,

including senior executives.

• Dedicated leadership and ownership of the implementation from a business executive in each local delivery center.

• Small, effective, localized teams (including representatives from HR, SW engineering process team, and technology experts) were able to implement locally consistent set of global HR processes.

• Personalizing each delivery center implementations actions and goals to the local audiences.

• Employees were engaged by positioning the People CMM as an improvement mechanism rather than an accreditation program.

The Most Admired & Largest IT Consulting Company...


Outcomes & AchievementsAdoption of the People CMM has helped Company’s delivery centers attain remarkable achievements in business and workforce objectives including:

• Increased employee moral, satisfaction, and engagement• Better talent management• Improved workforce capability to meet business growth• Improved marketability• Employee engagement improved by 9%-16% in 2 years earning the company the

“Top Ten Best Employers in multiple countries”• Significant reduction in Attrition from the range of 30%-35% to 15%-16%• 20%-25% jump in manpower resource utilization• Time taken to make new joiners productive reduced by 15%-20%• Employee satisfaction score improved by 35% with very high participation

The Most Admired & Largest IT Consulting Company...

© 2015 KPMG India Private Limited, an Indian limited liability company and a memberfirm of the KPMG network of independent member firms affiliated with KPMGInternational Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Thank You

Sankaran VKPMG

Mail: [email protected]

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