Providing Business Value:  Managing People to Support a High-Performing Organization 29 July 2003 Rick Poppell, Vice Presi...
Agenda <ul><li>Current state  </li></ul><ul><li>The changing role of IT </li></ul><ul><li>An HCM model for improving busin...
Current State of the IT Employment Environment <ul><li>Employee Initiated IT Turnover Rates Dropped </li></ul><ul><ul><li>...
Current State of the IT Employment Environment <ul><li>Difficult-to-Hire Positions </li></ul><ul><ul><li>DBA </li></ul></u...
The Changing Role of IT Increased BVIT Business Partner —Seeks to understand business need; provides alternative solutions...
Efficiency Measures The “value” perception of IT increases as you internalize work processes and increase the capability o...
Business Value of IT—HCM Model Aligning key Human Capital Management  elements  is the key to success
HCM Model—Supporting Elements  <ul><li>A common business and IT strategy is key to success </li></ul><ul><li>Understanding...
HCM Model—Purpose  Purpose Purpose Purpose Purpose <ul><li>Understand degree of business alignment </li></ul><ul><li>Ident...
HCM Model—Purpose  <ul><li>Defines HCM strategy that when implemented will support the overarching IT strategy </li></ul><...
HCM Model—Supporting Elements  Creating competitive advantage through optimization of technology and HCM  <ul><li>Driving ...
Organization Structure Purpose <ul><li>Understand degree of business alignment </li></ul><ul><li>Identify required IT func...
Influences to Organization Design <ul><li>The  Business Structure— IT should align to optimize relationships related to th...
Work Process and BVIT <ul><li>How you bring IT resources together will define the BVIT </li></ul><ul><ul><li>Resource Owne...
<ul><ul><li>IT organizations are usually not always  completely  Centralized or Decentralized; however, some take on chara...
IT Management Structure and Span of Control <ul><li>The typical management hierarchy for an IT function is between two and...
IT Staffing Ratios <ul><li>The overall number of IT staff in a company is dependent both on company size and on industry <...
Outsourcing <ul><li>The survey indicates that 89 percent of companies outsource at least one IT function to some extent* <...
Job Family and Role Design  Purpose <ul><li>Define job families </li></ul><ul><li>Define clear roles, skills and competenc...
Consistent Position Definitions To Support  Resource Development and Utilization <ul><li>Career Development Planning </li>...
Career Path Progression Within Job Families Applications Development Project Management Leadership Junior Developer Develo...
Skills and Competencies <ul><li>Skills—What I do... </li></ul><ul><ul><li>Specific ability related to market based or inte...
Resource Management <ul><li>Getting the right people in the right roles </li></ul><ul><li>Maximize utilization of people <...
Understanding Current Capability Skills Inventory What skills are possessed by individual employees? What level of experie...
Staffing Strategy and Timing Questions to Answer Strategy 3+ years Planning 1-to-3 years Execution 1-to-6 months Deploymen...
Resource Optimization <ul><li>Reinforce behaviors </li></ul><ul><li>Manage and measure performance </li></ul><ul><li>Susta...
Resource Optimization  <ul><li>Resource optimization is achieved by ensuring your key HR processes are developing and rewa...
Performance Management <ul><li>Performance Management processes will help managers: </li></ul><ul><ul><li>Establish indivi...
Assessment Feedback Integrity The 360 Degree Process   <ul><li>Best Practices </li></ul><ul><ul><li>Goal Setting and Feedb...
Performance Management A Six-Step Process   Employees rewarded for results achieved (Compensation/Recognition) Performance...
Performance Management and  Career Development DEVELOPMENT <ul><li>Performance Management </li></ul><ul><ul><li>Specific t...
Developing a Total Reward Strategy for IT Total Reward <ul><li>Long-Term Incentives </li></ul><ul><li>Stock option </li></...
Compensation Strategy Base Salary Targets Total Cash Compensation Targets Percentage of Respondents Source: people 3 ’s 20...
Compensation Strategy  Source: people 3 ’s 2003 IT Market Compensation Study
Linking Pay To Performance Paying For What People Do And How They Do It Performance Linked to Rewards The performance equa...
Compensation Strategy  Results-oriented reward programs drive the right behaviors required for business success.
Summary Characteristics of a High-Performing IT Organization <ul><li>Clear and articulated IT Strategy in support of a Bus...
<ul><li>Formalized career development process in place </li></ul><ul><li>Performance management system in place, supported...
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  • Providing Business Value: Managing People to Support a High ...

    1. 1. Providing Business Value: Managing People to Support a High-Performing Organization 29 July 2003 Rick Poppell, Vice President Lily Mok, Senior Compensation Analyst Diane Berry, Managing Vice President
    2. 2. Agenda <ul><li>Current state </li></ul><ul><li>The changing role of IT </li></ul><ul><li>An HCM model for improving business value of IT </li></ul><ul><li>Best HCM practices to support a high-performing organization. </li></ul>
    3. 3. Current State of the IT Employment Environment <ul><li>Employee Initiated IT Turnover Rates Dropped </li></ul><ul><ul><li>Average of 2 to 4 percent. </li></ul></ul><ul><li>IT Unemployment Rates Up </li></ul><ul><ul><li>High rates of workforce reduction </li></ul></ul><ul><ul><li>Spots of geographic severity </li></ul></ul><ul><ul><ul><li>Silicon Valley </li></ul></ul></ul><ul><ul><ul><li>NY Metro and Northeast </li></ul></ul></ul><ul><li>Increased Degree of IT Outsourcing </li></ul><ul><ul><li>89% of companies surveyed do it to some degree </li></ul></ul><ul><li>Aging Workforce </li></ul><ul><ul><li>Concern for loss of critical business knowledge </li></ul></ul><ul><ul><li>Especially an issue in Public Sector </li></ul></ul><ul><li>Emerging Risk of Employee Backlash </li></ul><ul><ul><li>Need for work/life balance </li></ul></ul><ul><ul><li>Conscious choices of employer allegiance </li></ul></ul>
    4. 4. Current State of the IT Employment Environment <ul><li>Difficult-to-Hire Positions </li></ul><ul><ul><li>DBA </li></ul></ul><ul><ul><li>Internet/Web Architect </li></ul></ul><ul><ul><li>Network Architect and Engineer </li></ul></ul><ul><ul><li>Security Analyst </li></ul></ul><ul><ul><li>Project Manager </li></ul></ul><ul><ul><li>ERP Configurer </li></ul></ul><ul><li>Current Hot Skills </li></ul><ul><ul><li>Oracle </li></ul></ul><ul><ul><li>PeopleSoft </li></ul></ul><ul><ul><li>Java </li></ul></ul><ul><ul><li>MS SQL Server </li></ul></ul><ul><ul><li>UNIX </li></ul></ul><ul><ul><li>XML </li></ul></ul><ul><li>Average Base Salary Increase </li></ul><ul><ul><li>3.5% for 2002 and 2003 </li></ul></ul><ul><ul><li>A precipitous drop in 2001 </li></ul></ul>
    5. 5. The Changing Role of IT Increased BVIT Business Partner —Seeks to understand business need; provides alternative solutions Transactional —Delivers on customer defined requirements; order taker Consultative —Understand both business and technology; provides proactive solutions Strategic Leadership —Setting the strategic direction of the Enterprise Climbing the IT Value Chain Where are you today? Where do you need to be? Increased Competencies and Integration of the Primary HCM Processes
    6. 6. Efficiency Measures The “value” perception of IT increases as you internalize work processes and increase the capability of the organization Areas of Focus
    7. 7. Business Value of IT—HCM Model Aligning key Human Capital Management elements is the key to success
    8. 8. HCM Model—Supporting Elements <ul><li>A common business and IT strategy is key to success </li></ul><ul><li>Understanding the business strategy and role of IT in supporting the strategy </li></ul><ul><li>Developing an IT strategy that aligns and supports overarching business objectives </li></ul><ul><li>Supporting greater IT credibility </li></ul>Purpose
    9. 9. HCM Model—Purpose Purpose Purpose Purpose Purpose <ul><li>Understand degree of business alignment </li></ul><ul><li>Identify required IT functions </li></ul><ul><li>Build a process-aligned organization structure </li></ul><ul><li>Getting the right people in the right roles </li></ul><ul><li>Maximize utilization of people </li></ul><ul><li>Effective use of contractors and outsourcers </li></ul><ul><li>Reinforce behaviors </li></ul><ul><li>Manage and measure performance </li></ul><ul><li>Sustain professional development </li></ul><ul><li>Reward and Recognize </li></ul><ul><li>Define job families </li></ul><ul><li>Define clear roles, skills and competencies </li></ul><ul><li>Define career and progression paths </li></ul>
    10. 10. HCM Model—Purpose <ul><li>Defines HCM strategy that when implemented will support the overarching IT strategy </li></ul><ul><li>Defines how HCM resources will be sourced and utilized within IT </li></ul><ul><li>Provides a governance process to ensure strategy elements are being adhered to and objectives are realized </li></ul>Purpose
    11. 11. HCM Model—Supporting Elements Creating competitive advantage through optimization of technology and HCM <ul><li>Driving for defined business results that support the overarching needs of the enterprise </li></ul><ul><li>Realizing competitive advantage through IT </li></ul>Purpose
    12. 12. Organization Structure Purpose <ul><li>Understand degree of business alignment </li></ul><ul><li>Identify required IT functions </li></ul><ul><li>Build a process-aligned organization structure </li></ul>
    13. 13. Influences to Organization Design <ul><li>The Business Structure— IT should align to optimize relationships related to the overall business structure—centralized vs. decentralized </li></ul><ul><li>The Role of IT— Transactional organizations will take on a different structure than a more consultative IT organization </li></ul><ul><li>Efficiency vs. Effectiveness— Centralized vs. decentralized models will impact how efficient and/or effective the organization operates </li></ul><ul><li>Outsourcing— The degree to which a company outsources all or part of its IT function will impact how the organization is structured and the types of roles required </li></ul><ul><li>Roles and Process Design— How an organization is structured will impact how work flows through the organization influencing process and role definitions </li></ul>
    14. 14. Work Process and BVIT <ul><li>How you bring IT resources together will define the BVIT </li></ul><ul><ul><li>Resource Ownership </li></ul></ul><ul><ul><li>Project Management Office </li></ul></ul><ul><ul><li>Centralized vs. Decentralized </li></ul></ul>Customers Customers Customers Delivery Support Project Prioritization Selection Matrixed Resource Mgt. Build, Buy, Outsource, Contractor SLAs Outsourcing BVIT Infinite Requests Limited Resources IT Process Alignment Portfolio Management Project/Resource Management
    15. 15. <ul><ul><li>IT organizations are usually not always completely Centralized or Decentralized; however, some take on characteristics that drive them to operate to one of the extremes. An appropriate balance should be sought between flexibility and control based on the business needs, IT strategy and IT culture. </li></ul></ul>Organization Design Options and Impacts Corporate/ Divisional Model Process Oriented Model Efficiency Effectiveness Centralized Model Functional Model Decentralized Model
    16. 16. IT Management Structure and Span of Control <ul><li>The typical management hierarchy for an IT function is between two and three management levels (including the top IT executive level–CIO) </li></ul><ul><li>The span of control is a function of management level, with the lowest-level managers having the widest span of control </li></ul><ul><li>Span of control varies only slightly across IT sub-functions </li></ul>Source: Organizing For Results: IT Structures and Staffing Survey , January 2003, people 3 , Mercer Human Resource Consulting and the Information Technology Association of America 1 2 3 4 5 Median Annual Sales (millions) $35 $250 $526 $1,850 $6,474 Median # of Employees 600 750 2,300 4,600 8,542 Median # of IT Employees 8 31 64 233 693 Median Annual Sales (millions) $26 $235 $666 $2,450 $6,529 Median # of Employees 133 650 230 6,071 1,100 Median # of IT Employees 6 30 63 233 522 Applications Development Infrastructure # of Management Levels Applications Development 7 to 8 employees per supervisor Infrastructure 6 to 8 employees per supervisor Operations 5 to 9 employees per supervisor Program Management 3 to 10 employees per supervisor
    17. 17. IT Staffing Ratios <ul><li>The overall number of IT staff in a company is dependent both on company size and on industry </li></ul><ul><ul><li>As the total number of employees increases, there are more employees supported by each IT professional </li></ul></ul><ul><ul><li>Financial Services companies typically have the highest levels of IT staff </li></ul></ul>Ratio of Employees to IT Professional 18 25 40 0 5 10 15 20 25 30 35 40 45 < 500 500 - 10,000 > 10,000 Company Size (Number of Total Employees) Number of Employees per IT Professional Ratio of Employees to IT Professional 11 19 33 36 0 5 10 15 20 25 30 35 40 Financial Services Professional Services Government, Education, Non-profit Manufacturing Industry Number of Employees per IT Professional Source: Organizing For Results: IT Structures and Staffing Survey , January 2003, people 3 , Mercer Human Resource Consulting and the Information Technology Association of America
    18. 18. Outsourcing <ul><li>The survey indicates that 89 percent of companies outsource at least one IT function to some extent* </li></ul><ul><li>IT functions may choose to outsource for a number of reasons*: </li></ul><ul><ul><li>Focus on core competencies </li></ul></ul><ul><ul><li>Train existing staff for emerging needs </li></ul></ul><ul><ul><li>Improve time to market </li></ul></ul><ul><ul><li>Reduce costs—convert fixed costs to variable </li></ul></ul><ul><li>However, potential risks associated with outsourcing should also be considered in deciding whether to outsource: </li></ul><ul><ul><li>Technical—Being forced to stay with a current architecture because the vendor does not support the company’s new needs </li></ul></ul><ul><ul><li>Business—Losing the capacity to make quick IT decisions or being unable to terminate/convert the contract easily in the event of a merger or acquisition </li></ul></ul><ul><ul><li>Economic—Discovering unexpected costs during the contract </li></ul></ul>*Source: Organizing For Results: IT Structures and Staffing Survey , January 2003, people 3 , Mercer Human Resource Consulting and the Information Technology Association of America
    19. 19. Job Family and Role Design Purpose <ul><li>Define job families </li></ul><ul><li>Define clear roles, skills and competencies </li></ul><ul><li>Define career and progression paths </li></ul>
    20. 20. Consistent Position Definitions To Support Resource Development and Utilization <ul><li>Career Development Planning </li></ul><ul><li>Succession Planning </li></ul><ul><li>Resource Planning </li></ul><ul><li>Recruiting—Interviewing </li></ul><ul><li>Project Staffing Requirements </li></ul><ul><li>Management Coaching </li></ul><ul><li>Training Plans </li></ul><ul><li>The Right People in the Right Roles </li></ul><ul><li>Insource vs. Outsource </li></ul><ul><li>Resource Availability </li></ul><ul><li>Training to Address Skill and Competency Gaps </li></ul>Career Paths Skill and Competence Requirements Employee Assessments and Development Plans Job Families <ul><li>Employee and Enterprise Data </li></ul>
    21. 21. Career Path Progression Within Job Families Applications Development Project Management Leadership Junior Developer Developer Senior Developer Development Consultant Project Leader Manager Project Manager Senior Manager Senior Project Manager Director Program Manager Vice President
    22. 22. Skills and Competencies <ul><li>Skills—What I do... </li></ul><ul><ul><li>Specific ability related to market based or internally developed products and services </li></ul></ul><ul><ul><ul><li>Relatively easy to identify and develop </li></ul></ul></ul><ul><ul><ul><li>Relatively easy to develop through training </li></ul></ul></ul><ul><ul><ul><li>Poor predictors of long-term performance </li></ul></ul></ul><ul><li>Competencies—How I do it... </li></ul><ul><ul><li>Competencies are characteristics of an individual that are observable, measurable, and predicative of performance within a given role or job. </li></ul></ul><ul><ul><ul><li>Harder to identify and develop in an individual </li></ul></ul></ul><ul><ul><ul><li>Can be developed through a combination of approaches (e.g., training, coaching, feedback) </li></ul></ul></ul><ul><ul><ul><li>Better predictors of long-term performance </li></ul></ul></ul>
    23. 23. Resource Management <ul><li>Getting the right people in the right roles </li></ul><ul><li>Maximize utilization of people </li></ul><ul><li>Effective use of contractors and outsourcers </li></ul>Purpose
    24. 24. Understanding Current Capability Skills Inventory What skills are possessed by individual employees? What level of experience does each employee have for each skill? When aggregated, can we get a consistent organization view? What are our organizational skills strengths and weaknesses? Individual Skills Individual Experience Collective Reporting Organization View <ul><li>Current technology skills </li></ul><ul><li>Prior technology skills </li></ul><ul><li>Emerging technology skills </li></ul><ul><li>High-Level competencies </li></ul><ul><li>Years of experience by skill </li></ul><ul><li>Date skill last used </li></ul><ul><li>Level of proficiency by skill </li></ul><ul><li>Supervisor validation </li></ul><ul><li>Consistent skills categories and lists </li></ul><ul><li>Complete organization view </li></ul><ul><li>Strongest capability by skill </li></ul><ul><li>Weakest skill </li></ul><ul><li>Training direction </li></ul><ul><li>Opportunities for contractors or outsourcing </li></ul>
    25. 25. Staffing Strategy and Timing Questions to Answer Strategy 3+ years Planning 1-to-3 years Execution 1-to-6 months Deployment 1 month Resource Assembly 1 year <ul><li>Where will our enterprise be? </li></ul><ul><li>What businesses will we be in? </li></ul><ul><li>What kind of people will we need? </li></ul><ul><li>With whom will we partner? </li></ul><ul><li>What kind of investments must we make? </li></ul><ul><li>What will be the role of the IS organization? </li></ul><ul><li>What skills, knowledge, proficiency, competencies will we need? </li></ul><ul><li>What should we focus on? </li></ul><ul><li>What delivery models shall we use? </li></ul><ul><li>Where are our gaps? </li></ul><ul><li>Which skills should we build? Buy? </li></ul><ul><li>Do we have prof’l devel-opment plans? </li></ul><ul><li>How many people shall we prepare? </li></ul><ul><li>With whom will we work? </li></ul><ul><li>For what work do we have the right skills? </li></ul><ul><li>Which gaps can we fill? </li></ul><ul><li>Which gaps can we not fill? </li></ul><ul><li>Who and what gets priority? </li></ul><ul><li>Who shall we assign to what role? </li></ul>
    26. 26. Resource Optimization <ul><li>Reinforce behaviors </li></ul><ul><li>Manage and measure performance </li></ul><ul><li>Sustain professional development </li></ul><ul><li>Reward and recognize </li></ul>Purpose
    27. 27. Resource Optimization <ul><li>Resource optimization is achieved by ensuring your key HR processes are developing and rewarding the right behaviors resulting in desired business results. </li></ul><ul><li>Key HR processes include: </li></ul><ul><ul><li>Performance Management </li></ul></ul><ul><ul><li>Career Development </li></ul></ul><ul><ul><li>Reward </li></ul></ul><ul><ul><ul><li>Cash </li></ul></ul></ul><ul><ul><ul><li>Non-cash </li></ul></ul></ul><ul><ul><li>Succession Planning </li></ul></ul><ul><ul><li>Selection </li></ul></ul>
    28. 28. Performance Management <ul><li>Performance Management processes will help managers: </li></ul><ul><ul><li>Establish individual and/or team objectives aligned to business unit goals </li></ul></ul><ul><ul><li>Provide frequent communications on how employees are doing throughout the year (feedback and coaching) </li></ul></ul><ul><ul><li>Document results </li></ul></ul><ul><ul><li>Fairly evaluate performance </li></ul></ul><ul><ul><li>Provide appropriate rewards for individual and team contributions to the business. </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Helps to achieve sustainable improvements in individual and organization performance </li></ul></ul><ul><ul><li>Helps to increase employee motivation and commitment by linking business unit goal to individual objectives (line of sight) and rewards </li></ul></ul><ul><ul><li>Development focused </li></ul></ul><ul><ul><li>Strengthens relationships between individuals and their managers through continuous communication. </li></ul></ul>
    29. 29. Assessment Feedback Integrity The 360 Degree Process <ul><li>Best Practices </li></ul><ul><ul><li>Goal Setting and Feedback </li></ul></ul><ul><ul><ul><li>Aligned with negotiated requirements or SLAs </li></ul></ul></ul><ul><ul><ul><li>Aligned with organization objectives </li></ul></ul></ul><ul><ul><ul><li>Multiple, objective, negotiated sources of feedback </li></ul></ul></ul><ul><ul><ul><li>Typically facilitated by employee’s manager </li></ul></ul></ul><ul><ul><ul><li>Typical Feedback Providers </li></ul></ul></ul><ul><ul><ul><ul><li>Manager </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Self </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Project Manager </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Key Customers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Peers </li></ul></ul></ul></ul>Effectiveness of IT Staffing Strategies Your Manager Your Subordinates Your Supplier Your Customer YOU Inputs Outputs Requirements and Feedback Requirements and Feedback
    30. 30. Performance Management A Six-Step Process Employees rewarded for results achieved (Compensation/Recognition) Performance results summary discussion Performance Ratings calibrated across the IT organization. Manager writes initial Performance Results Summary Mid-Year Performance Review Establish IT Goals and individual/team objectives 1 2 3 4 5 6 June - July December January February March January - February Coaching Feedback
    31. 31. Performance Management and Career Development DEVELOPMENT <ul><li>Performance Management </li></ul><ul><ul><li>Specific time period for evaluation of performance (short-term) </li></ul></ul><ul><ul><li>Linked to compensation </li></ul></ul><ul><ul><li>Development of critical competencies for current role and achievement of desired performance results for Performance year. </li></ul></ul><ul><li>Career Development </li></ul><ul><ul><li>Defined timeline (long-term) </li></ul></ul><ul><ul><li>Linked to employee growth </li></ul></ul><ul><ul><li>Competency gap analysis and development to close gap for achievement of career goal. </li></ul></ul>Win-win occurs when development for business need (performance) supports development for employee desired career goal.
    32. 32. Developing a Total Reward Strategy for IT Total Reward <ul><li>Long-Term Incentives </li></ul><ul><li>Stock option </li></ul><ul><li>Restricted stock </li></ul><ul><li>Deferred cash </li></ul><ul><li>Annual Variable Pay </li></ul><ul><li>Premium pay </li></ul><ul><li>Annual incentives </li></ul><ul><li>Project milestone </li></ul><ul><li>Project completion </li></ul><ul><li>Cash recognition (spot award) </li></ul>Base Pay <ul><li>Benefits </li></ul><ul><li>Pension </li></ul><ul><li>401(k) </li></ul><ul><li>Healthcare </li></ul><ul><li>Disability </li></ul><ul><li>Vacation </li></ul><ul><li>Perquisites </li></ul><ul><li>Company car </li></ul><ul><li>Commute service </li></ul><ul><li>On-site amenities </li></ul><ul><li>Health club </li></ul><ul><li>Non-Cash </li></ul><ul><li>Recognition </li></ul><ul><li>Pat-on-the back </li></ul><ul><li>Public recognition of achievement </li></ul><ul><li>Tech toys </li></ul>Total Remuneration <ul><li>Job matches skills/ competencies </li></ul><ul><li>Performance feedback </li></ul><ul><li>Job security </li></ul><ul><li>Personal growth </li></ul><ul><li>Career advancement </li></ul>Culture Work Environment Affiliation Reward Career Reward Indirect Financial Reward Direct Financial Reward Total Cash Compensation
    33. 33. Compensation Strategy Base Salary Targets Total Cash Compensation Targets Percentage of Respondents Source: people 3 ’s 2003 IT Market Compensation Study Percentage of Respondents Target Percentile Target Percentile (N=131) (N=135)
    34. 34. Compensation Strategy Source: people 3 ’s 2003 IT Market Compensation Study
    35. 35. Linking Pay To Performance Paying For What People Do And How They Do It Performance Linked to Rewards The performance equations represent an overall practice of high-performing IT organizations. The three critical elements which contribute to superior performance in an IT role are identified and are linked into market-competitive reward and recognition. <ul><li>Education </li></ul><ul><li>Training </li></ul><ul><li>Accountabilities </li></ul><ul><li>Goals </li></ul><ul><li>Assignments </li></ul><ul><li>Behaviors (Competencies) </li></ul><ul><li>Reward and Recognition </li></ul>Knowledge and Skills What Needs to Be Done How Work is Done… (Which Leads to Optimal Results) Actual Results Accomplished + + = Source: people 3 ’s 2003 IT Market Compensation Study
    36. 36. Compensation Strategy Results-oriented reward programs drive the right behaviors required for business success.
    37. 37. Summary Characteristics of a High-Performing IT Organization <ul><li>Clear and articulated IT Strategy in support of a Business Strategy </li></ul><ul><li>Clear and articulated Mission, Vision and Values </li></ul><ul><li>Strong, ongoing communications (360 degree) </li></ul><ul><li>Formal and coordinated alignment with business units (often through an IT Business Office) </li></ul><ul><li>Program management office (PMO) and competency centers </li></ul><ul><li>Identified and formalized work processes </li></ul><ul><li>Formalized role definitions—people understand the requirements of their job and their part in the IT process </li></ul><ul><ul><li>Position descriptions (job characteristics, project complexity, education and experience) </li></ul></ul><ul><ul><li>Required business, behavioral and technical competencies </li></ul></ul><ul><ul><li>Formal career paths </li></ul></ul>
    38. 38. <ul><li>Formalized career development process in place </li></ul><ul><li>Performance management system in place, supported by a measurement culture </li></ul><ul><li>Rewards (financial and non-financial) that align to individual goals and desired behaviors </li></ul>Summary Characteristics of a High-Performing IT Organization Alignment is Key!

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