Pdi competency chaos white paper

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In pursuing the promise of HR technology an organization must also overcome the inevitable pitfalls standing in the way of those promises. We welcome you to use what you learn here to assess your …

In pursuing the promise of HR technology an organization must also overcome the inevitable pitfalls standing in the way of those promises. We welcome you to use what you learn here to assess your organization’s current level of maturity and align your talent management strategies to surmount one of the most important immediate hurdles you face—that of competency chaos. Your reward will be technology that works better and acceleration down the path toward talent management value realization.

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  • 1. Getting Past Competency ChaosA Crucial Step on the Path to Talent Management Value RealizationIn pursuing the promise of HR technology an organization must also overcome the inevitable pitfalls standingin the way of those promises. We welcome you to use what you learn here to assess your organization’scurrent level of maturity and align your talent management strategies to surmount one of the most importantimmediate hurdles you face—that of competency chaos. Your reward will be technology that works betterand acceleration down the path toward talent management value realization.IntroductionIn 2005, while discussing the emergence of tools to support strategic HR capabilities, research analysts fromthe Gartner Group noted: The interests of four diverse communities—executives, IT, HR and vendors—are coming together to support the emergence of a new suite of human capital management applications, which we call talent management application suites (TMAS) 1While vendors and IT managers have their own motives for pursuing integrated suites, for business andhuman resources executives the demand for TMAS is driven by a need to gain maximum value from humanassets. The decisions made by managers about people are increasingly viewed as crucial to building a readysupply of the right talent for organizations competing in a knowledge economy. This vision of managersarmed with the information needed to make better talent decisions—that will add real value in the drive forenterprise performance and sustainability—is the primary reason for the significant investments organizationshave been making in these application suites.ProblemThe need to make better talent decisions has, indeed, been the objective of recent talent managementtechnology implementations. Yet this goal has proven illusive. In a rush to automate talent managementprocesses and put sophisticated tools in place, organizations have overlooked factors that lead to therealization of strategic return on these investments. Instead, they have inadvertently exposed themselves torisks associated with getting poor data faster to make quick and inappropriate decisions.To understand the current state of affairs with today’s talent management application suites and the persistentobstacles to using this technology more strategically, it’s helpful to look at previous research presented on the topic.Figure 1 on the next page shows a typical architecture for a talent management application suite, as identifiedby the pioneering research from the Gartner Group’s report in 2005. 21 Gartner’s Dec 2007 research publication – ID Number: G00152102: Unlocking the Strategic Value From Talent ManagementApplication Investments by James Holincheck.2 Gartner’s June 2005 research publication – ID Number: G00126407 Talent Management Application Suites Can Enhance WorkforceEffectiveness by James Holincheck. Real Leadership Advantage ™
  • 2. Figure 1:This research, updated in 2007, states: Customers talk about implementing talent management applications to support strategic human capital management. However, much of what has been implemented focuses on automating what was previously done on paper or in Microsoft Word documents or Excel spreadsheets.1Holincheck goes on to list some of the key reasons for this more tactical reality of most implementations. The lack of integration between talent management applications can cause many issues for companies in gaining strategic value from their investments…From an IT point of view, there is shared data that is used across the multiple applications that must be kept in sync. A core HRMS solution (personnel, payroll and benefits administration) typically provides the system of record for basic employee and organizational hierarchy data… However, competency models, job profiles and individual talent profile data are typically not stored in the core HRMS... It is stored in each talent management application. Thus, if several vendors are used for talent management applications, then these vendors need to integrate with another vendor to ensure that this data stays in sync. The analysis of talent data should drive decisions on how to best leverage talent to achieve specific business outcomes. The lack of consistent and integrated talent profile data makes it difficult to analyze and use strategically… However, it is just this type of analysis that is the key to unlocking the strategic value of talent management investments. 2
  • 3. Overcoming Competency Chaos: A Crucial Step on the Path to ValueRealizationThe Gartner research points to a number of factors preventing organizations from getting strategic value fromtheir talent management applications. Chief among these is the difficulty organizations face in effectivelydeveloping, deploying, and integrating competency libraries and job profiles across disparate systems.The need to improve talent decisions and the effective use of human assets are the primary goals of the talentmanagement application suite. Every day, decisions are made in the areas of selection, performance and pay,development, succession, and promotion. All of these require a common taxonomy to describe the skills andbehaviors – or competencies – that drive organizational performance.When used effectively, competencies are more than a mere library of desired traits. Rather, sets ofcompetencies are assembled into competency models, or job profiles, that accurately describe successfulperformance in critical roles. These job profiles become the basis for making more sophisticated and effectivedecisions about talent.As demonstrated by the Gartner study, the importance of competencies and job profiles to strategic talentmanagement is well documented. Yet, organizations continue to stumble when implementing competenciesfor a wide variety of reasons. Some of the most common challenges are: lack of stakeholder and constituent buy-in to competency models which often occurs when the relevant stakeholders are not involved in the initial design or when their unique needs are not addressed in the job profiles that are created lack of a process for updating and keeping competency models current as the organization changes lack of appropriate competency governance processes and policies which often results in the demise of the view of competencies as a fair and objective tool failure to integrate competencies and profiles into critical business and talent management processes little consideration for how competency models and competency content need to integrate with various talent management technology platforms designing competency models without the end use in mind using competency models designed for one purpose to try to fit another resulting in the need to adjust models after the fact lack of a single system for managing competency content and making it accessible to all users so that changes to the competencies are made as they happen in all locations lack of a plan to execute against the competency models and successfully ensure that they lead to real behavior change in the organizationDefining Competency ChaosAt the center of most of these problems is a condition called competency chaos. Competency chaos is thesituation that arises when different parts of an organization create their own sets of competency content tomatch their specific HR needs. In other words, competency chaos is the state of confusion that reigns whendifferent parts of an organization independently define and use the same or similar competencies in differentways.Competency chaos can happen for many reasons. In one organization, three different departments definedtheir own competencies, with the result being three different definitions for “communication skills.” Inanother, the conversion of job descriptions created a far too diverse competency catalog. In a third, a central 3
  • 4. competency model was identified, but some departments felt it didn’t quite work for them, so they redefinedthe competencies to suit their specific needs.The consequence is that each part of the organization has its own set of definitions for the content that shouldserve as the foundation of the common talent management systems. Imagine different business or functionalgroups having various definitions for the accounting codes used to manage expenses and run a business. Thatwould certainly create accounting chaos. In turn, this would doom any ambitions an organization might haveto make smart financial decisions based on acomprehensive and accurate accounting of Imagine different business orthe overall financial position of the enterprise. functional groups having variousIn a similar way, competency chaosjeopardizes the successful implementation of definitions for the accounting codestalent management systems and weakens used to manage expenses and run atheir promise to provide an organization with business.a solid plan to manage its human capital as anasset.Deceptive ComplexityOne factor that contributes to the deficiencies of competency management is the appearance thatimplementation is simple. Talent management system vendors focus on their applications and assume thattheir clients can develop their own set of competencies. They generally provide support only for finishedcompetency profiles mapped to organizational positions. In addition, just about every talent managementtechnology vendor and human capital consulting firm professes the ability to do competency modeling, butmany of them lack grounding in the art and science of building proper models and profiles and fail tounderstand the necessary talent management perspective.Because many organizations believe that competencies are simple, they think they can create and implement acompetency-based solution by gathering a group of people to brainstorm a set of competencies in anafternoon. While that process may elicit a list of desirable traits, in many cases those traits are statements ofaltruistic vision and have little connection to the business strategy and, as a result, do nothing to improvebusiness results. Without a well-defined direction emanating from a clear competency strategy, the benefits ofan aligned workforce are never realized.What makes implementing competencies so difficult? There are many factors that contribute. Among them: Many different uses and views of the same competencies Competencies can be applied in many ways within an organization, just as they are used in many ways in systems—as a basis for interviewing candidates for an open position, underlying a skills inventory, to define development needs—different groups have different, usually overlapping needs, and the result is a legacy of different approaches and levels of quality. Many different types of competencies Competencies work in different ways and do different things. In addition, there are many ways of looking at competencies. For example: Core competencies describe the culture and behaviors of an organization. 4
  • 5. Level-based competencies refer to those competencies shared by people at specific levels of an organization (e.g., managerial, leadership). Functional competencies refer to competencies, usually behavioral, shared by individuals in a particular function. Technical competencies refer to the technical skills necessary to get a job done. Career path competencies identify the developmental competencies needed for a future position. Competencies can also be categorized as threshold vs. differentiating. While these categorizations are not similar to those above, they are important considerations. Threshold competencies are like “table stakes”; they refer to the competencies that are necessary, but they don’t separate high performers from average performers. Differentiating competencies, on the other hand, do just that. They are the competencies that are exhibited by “A” players that are not demonstrated by “B” or “C” performers. These competencies are discussed in greater detail later in this paper. Different levels of granularity Certain processes (e.g., selection) use competencies as a whole, while other processes (e.g., development) focus on competencies at the behavior level. General enough to be comparable for succession planning but specific enough to be relevant, clear, and measurable Different uses for competencies place different demands on competency profiles. Competencies are best understood and adopted when they speak directly to an individual, but yield the best analytics when they can be used to aggregate comparisons across the organization. Emotionally charged because they are the basis of performance and pay Because of their tie to performance and pay, it is natural for every constituency to try to adjust the competencies to fit their strengths. “Gaming” the system may be natural, but it can wreak havoc with an attempt to leverage competencies to generate prescriptive or predictive analytics. Need for objectivity and fairness Because of their tie to performance and pay, it is critical that the competencies are perceived as objective and fair. This can only happen is a measure of inter-rater reliability if introduced. If that is not the case, “easy graders” will cause further grumblings of inequity and undercut the utilization and perceived value of the system.Competency chaos and the fractured nature of competency integration across an enterprise is not the fault ofthe systems, process, and data tools. In fact without the proper competencies the systems, process, and toolscan’t progress and mature. As more organizations seek to evolve their talent strategies and realize value fromtheir talent management initiatives, the imperative to squarely address the competency foundation andminimize competency chaos is increasing.In short, the payoff from talent management strategies is often stalled by the lack of a coherent, competency-based foundation, for both aligning talent strategy with business strategy and enabling execution of that 5
  • 6. strategy through a focus on the performance behaviors most essential to strategy success. To paraphraseWinston Churchill, “[Competencies] are the worst form of [talent management] except when you compare thealternatives.SolutionSo how does an organization create a comprehensive competency strategy, avoid competency chaos, andavert the risk of the rush to automate? The chart below depicts the current landscape of today’s maturingtalent management strategies, avoiding competency chaos, and advancing to a vision of Enterprise TalentManagement Value Realization. While it suggests the use of technology application tools, it is obvious thatmore than technology is needed if the strategic vision is to be realized. From Competency Chaos to Talent Management Value Realization High Vision for automation, but immature Vision for business impact, sound strategy; simplistic and ineffective strategy, and solid integrated competency competency models with effective models and profiles; combining implementation in terms of executive automation with effective implementation commitment and execution excellence for in terms of executive commitment and Implementation Effectiveness enterprise adoption execution excellence for enterprise adoption Well-Oiled HR Machine Mature Competency Strategy with Enterprise Talent Management Value Realization Competency Strategic Vision Without Impact Strategy Start-up Vision for automation, but immature Vision for business impact, sound strategy; simplistic and ineffective strategy, and solid competency models competency models with ineffective and profiles; uses automation but with Low implementation ineffective implementation Low High Competency StrengthBecause many talent management strategies are relatively immature, and because competency chaos is afrequent impediment to their success, an approach is needed that accelerates more immediate returns on talentmanagement initiatives. This approach would: reflect a realistic view of current conditions pertaining to technology, competency content, and talent management decision processes balance the attention on technology tools with attention to key implementation barriers such as the foundation of competency content that is needed to define the behaviors essential for strategy success quickly define the scope for an early win where competency alignment within one or more talent management processes would lead to better talent decisions and more desirable outcomes continue the process of gradually resolving competency chaos so talent management applications can capture the accurate and consistent data needed for better talent decisions and lay a rock-solid foundation for greater integration in the future 6
  • 7. In short, a Competency Strategy needs to be developed, complete with a road map and timetable that outlinesthe conditions required for success.As part of the strategy, an optimal framework will be established that captures the core leadership capabilitiesrequired at different levels in the enterprise, the key functional capabilities needed to further develop thefunctional profiles at different leadership levels, and the core business skills required across the organization.At the same time, it will ensure that the resulting output is simple and easy to use. This approach will make iteasy to map existing success profiles andto create new job profiles in differentparts of the business. In a rapidlychanging business environment, roles andjobs will change, disappear, and be newlycreated, so the competency frameworkmust be flexible and enable anorganization to continue to apply theframework as its business evolves.A strong conceptual approach to helpingorganizations build an enterprise-wide,integrated capability framework isillustrated.Why an Enterprise Competency Structure Is CriticalThe number and types of functional models and job families vary by organization. Inevitably, there is astruggle to balance between the desire to create broadband functions and the need to get competencies closestto the position so they are relevant to the job they attempt to describe.The number of functions may also help to determine the competencies used in specific models. For example,a recent report, “The Role of Competencies in Driving Financial Performance,” states that “Because financialservices companies tend to be stove-piped into distinct functional business units, [a good] communication[competency] breaks down these large barriers, and makes individuals more effective and gives them greaterperspective.”The most critical determinant of the optimal framework for competency models is their link to businessperformance. Competencies are the embodiment of the organization’s business strategy through its people.Research shows that when managers identify the competencies required for high performance, they are rightapproximately half of the time. The problem is that they don’t know which half! Ultimately, the ability(through research) to predict which capabilities are the most critical to performance allows for smaller,simpler, and more targeted models.Business Analytics to Link Talent Decisions to Business OutcomesThe final step in Talent Management Value Realization is when an organization is able to take full advantageof their competency modeling efforts by conducting advanced analytical research. At that point, they can linkcompetencies with organizational outcomes that matter, such as profitability, increased revenues, customersatisfaction, and employee engagement. When organizations can develop a process to determine whichdimensions of performance (competencies, behaviors) predict each critical strategic objective or outcome,they can achieve the real business impact of the initiative. 7
  • 8. A business impact analysis can help organizations determine: which competencies best differentiate “A” players from “C” players which behaviors have the greatest overall impact on outcomes such as productivity, customer service, and employee engagement where efforts should be focused to gain the greatest performance improvement where key business strategies or initiatives may be at risk due to talent constraintsThis analysis can use statistical methodologies to examine the ratings from a group of individuals todetermine the competencies and behaviors that have the most significant impact on key outcomes. Forexample, if an organization wants to identify those competencies most closely associated with individualproductivity, the analysis would examine the relationship between competency ratings from feedback surveysand individual productivity data obtained from the organization. The resulting analysis would generaterelative-importance weights for the competencies included in the survey as they relate to productivity. Thefigures that follow show actual data from a PDI professional services client. This helped them determine thecompetencies that were most critical for differentiating “A” vs. “C” performers.Predicting Utilization 8
  • 9. Building a Competency StrategyTo avoid competency chaos and achieve Talent Management Value Realization, six conditions must be met: 1. clear vision 2. aligned strategy 3. solid foundation 4. executive commitment 5. execution excellence 6. ongoing management and governance Clear Vision – a view into a future where integrated human capital management processes reliably yield the information and talent decisions needed to ensure a supply of superior leaders who will drive improved performance. This includes an understanding of how each of the talent management processes will be addressed and the associated competency requirements. This also includes a clear vision of the projected culture of the organization and the message that the competencies should send when they are presented to the organization. In addition, it includes a clear link to business outcomes, both for stakeholder buy-in and to evaluate impact. Aligned Strategy – a solid understanding of the outcomes desired from the organization’s business strategies and their alignment with a maturing talent management strategy and Information Technology systems integration strategy. Based on the organization’s vision, the behaviors and experiences most crucial to addressing its business needs are clearly linked (by competencies) to integrated human capital management processes. Solid Foundation – a strong competency management foundation supported by reliable data sources. This becomes the basis for integration of talent management applications and enables strategic, enterprise-wide impact.This requires a consistent and duplication-free competency library, a set of consistent competency profiles,and an underlying rationale that will support business analytics. The content must be simple enough to adoptand use on an everyday basis and strong enough to support its objectives. Most often this will include a clearframework that parallels the organizational structure, including the number of hierarchical levels and 9
  • 10. functional delineations. This will serve as the foundation for all competency component development, use,and lifespan management. To paraphrase Albert Einstein, “Make [the competencies] as simple as possible, butnot simpler.” Executive Commitment – clear direction from executive management will help ensure that managers and employees get involved early and often so that they understand the value in doing things differently. Execution Excellence – the best talent management applications implemented with the best processes will not achieve desired business outcomes if managers and employees don’t know where to start, or if they find the process too hard to use. In addition to skillful project management, successful execution requires a simple implementation process that addresses technology and infrastructure issues, competency foundation requirements, and organization/people concerns. It must make the new leadership “brand” memorable, measure the engagement, and reinforce the message whenever and wherever necessary. Ongoing Management and Governance – the more effective the competency implementation, the more susceptible it will be for each group that wants to tailor the models and profiles to fit its specific needs. This is a fast track to competency chaos. It is imperative that policies and business rules are put in place to protect the integrity of the competency system and the resulting data. Clear and strong governance of competency content is essential to the continued usefulness of your talent management system.In addition, a system of record for managing, updating, accessing, time-stamping, and sharing all competencydata must be integrated into the governance plan. Without such a system, different versions will inevitablyappear and a proper audit of the application of profiles will be virtually impossible.Finally, the organization will need a plan for managing and updating competency content to keep it alive.Competency content needs to evolve as the business strategy evolves. Inadequate supervision of the changesneeded or the lessons learned from the use of the competency models will, at best, render them irrelevant and,at worst, guide behavior that will be inconsistent with the company’s direction.By charting a path that meets these conditions, an organization will be able to more quickly move from theefficiency gains of technology automation into the arena of alignment of performance behaviors with strategyexecution needs which is required for Talent Management Value Realization.Specific ApproachOvercoming competency chaos for Talent Management Value Realization may seem difficult. To make iteasier, we recommend a three-step process that considers the current maturity of the organization’s talentmanagement strategies. 1. Figure out where we are now. How mature are our current talent management strategies? What’s our existing business need and vision for Talent Management Value Realization? What Talent Management Applications and IT Systems do we have in place and how well aligned are they? What are our competency assets and how can they be put together to create a cohesive foundation? Where do we have gaps? What level of executive commitment is there to overcome barriers and realize success? 10
  • 11. 2. Determine where we need to go. What is required to support development and learning systems? What about selection readiness assessment? What is needed to stand up to the scrutiny of pay for performance or succession planning and promotion decisions? What kind of competency framework will we need to minimize overlap, redundancy, and chaos? 3. Build a strategy road map. What is the foundational architecture? What do we need first? What’s needed for a quick win? What more will be needed? What is our timeframe?The following table suggests five levels of maturity in competency implementation (paralleling themodel/structure outlined by Carnegie Mellon in their CMM-P 3 ) that can be used to diagnose and assess thecurrent level of your organization. It also suggests the conditions that should be present to move from onelevel of maturity to the next. Using this table, organizations can create a specific agenda to sequentiallyprogress toward greater maturity.For example, in moving toward Talent Management Value Realization, an organization must start with astrategy that has the end result in mind. If the goal is a system to identify, differentiate, and develop talent forbetter decisions of all types – selection, promotion, development, and succession – then an integrated talentmanagement system will be needed with organization-wide analytics based on an aligned set of standards forall processes from recruitment to retirement. This means better tools to: build, customize, and manage a single, consistent competency and model library structure those competency models to provide both vertical and horizontal comparability leverage information about competencies by getting different applications to talk to each other enable managers to make sound decisions about jobs and people on a daily basis3 Talent People Capability Maturity Model (P-CMM) Version 2.0, 2008 Carnegie Mellon University by Bill Curtis, Bill Hefley, andSally Miller. 11
  • 12. Competency Implementation Maturity/Utility Model (abridged) MATURITY LEVEL 1 2 3 4 5 CRITERIA1. BUSINESS NEED: EXPERIMENT visibility; MANAGEMENT PERFORMANCE INTEGRATED ENTERPRISEpilot, play to core do latest thing; fad Communication Improve productivity, PERFORMANCE Shareholder Value (competency list as values reduce costs, cut cycle Profit, ROI statement), Control e.g., times, correct specific perf mgmt rating on problem (e.g., high new hire employees in a job or unit failure rate, turnover)2. ORG SPAN, One-off pilot study: Single job in several org Multiple org units, Multiple business: Enterprise-wide:IMPACT: pilot to single job, workgroup, units (e.g., sales); several processes, operations functions, processes multiple businessesenterprise-wide department jobs in one job family, linked to produce linked in profit center function economic outcome balanced scorecard3. HR APPLICATION: Single HR function: Two or more HR Several HR functions that Several HR and other All HR functions acrossOne to all >job/team/org analysis/ functions: A and B, but interact in causal flow business functions multiple businesses, design or >staffing or not linked synergistically value chain to increase (product geographies >development or >perf to improve performance performance (e.g., better development/R&D, management, or staffing + training + perf supply, production, >compensation mgmt) finance, marketing/ sales) that interact to improve business performance4. COMPETENCY Many data collection Standardized data Standardized BEI, 360 Standardized BEI, 360 Standardized BEI, 360METHODOLOGY: methods: panel, survey; collection: survey, perf survey, test competency survey, test survey, test competencyinconsistent methods no standards management form assessment methods competency assessment methodsto standardized, assessment methods worldwidereliable, validated linked5. CONTENT: random No standard Standard core Standard core competency Standard core Standard coreramblings to competency dictionaries competency dictionary dictionary used across competency dictionary competency dictionarystandardized, reliable, or definitions used across org units; processes; local used across business used enterprise-widevalidated content local supplements supplements; $EVA of functions; local with local supplements; competence at supplements; $EVA $EVA of competence at unsuccessful, average, and of competence at unsuccessful, average, superior (+1SD) points on unsuccessful, average, and superior (+1SD) performance bell curve and superior (+1SD) points on performance points on performance bell curve bell curve
  • 13. MATURITY LEVEL 1 2 3 4 5 CRITERIA6. IT SYSTEMS, None Integrated HR database Integrated HR database or Integrated HR and Integrated HR andsoftware support: or linked unit databases; linked unit databases linked ERP databases linked ERP databasesnone to integrated simple Statistics software (e.g., SEM and time series SEM and time seriesHRIS to ERP; s-o-a survey>database> SPSS) to test reliability statistics to test statistics to test balancedpredictive analytics reporting and validity of HR balanced scorecard scorecard value competency independent value chain/causal chain/causal flow variables to predict flow models: models: “upstream” dependent variables $EVA “upstream” competency (HR outcomes competency (HR learning and innovation), learning and ops and customer IVs innovation), ops and prediction of global customer IVs business financial prediction of DV outcomes business financial outcomes 13
  • 14. Adapted from the Competency Maturity Model by Lyle M. Spencer and Paul D. StorferSo, for example, if you have determined that your organization is currently at Level 2 and you wish to move the organization to Level 3, there are certainthings that you must have and certain things you must do to make that happen. Some of these will affect the culture and people in the organization and thecorresponding competency initiatives, and some will require investments in technology and systems infrastructure. MATURITY LEVEL 3 TO THE EXTENT THESE ARE NOT IN PLACE, TO REACH MATURITY LEVEL 3, YOU WOULD NEED TO: PEOPLE/ ORG Formalized HR management structure, within which HR seeks to Define the organizational structure CULTURE provide some level of strategic information to senior executives Define the rules and roles of job functions (non-specific) for Performance Management programs in place including a formal executives, managerial, line, and individual contributors Performance Appraisal program of some kind. Implement a well-defined Performance Management Program Formal recruiting efforts and supporting organization. Some business processes formalized take into account Web-based delivery of HR services and programs COMPETENCY Competencies integrated into organizational Performance Define and implement a pilot Performance Management Program INITIATIVES Management programs Seek employee acceptance and feedback during Performance. Core competencies for levels of positions from executive through Management Program development individual contributor are in place, typically within one just business Integrate Performance Management within workflow and consider best unit; not yet consistent within all business units across geographies; practice research identified competencies for a few job families, but not yet down to Explore metrics and scorecard utilization related to workforce the functional position level capabilities Some metrics related to performance of workforce are generated, Build competency definitions for all jobs in a single business unit, and mostly turnover and retention then use this to pilot additional business units SYSTEMS/ Fairly comprehensive HRIS capability, either a best-of-breed Talent Implement “go-live” plans for an HRIS that includes functionality for INFRA- Management Application package or an Enterprise Resource Performance Management and Career Development STRUCTURE Planning system or an effective home-grown system. Build appropriate interfaces to non-HR systems such as finance and HRIS maintaining job and position levels and descriptions, as well customer relations/billing as reporting relationships; organization structure and organization Ensure your systems have the capability to support basic or charting a plus rudimentary metrics and scorecards related to capturing workforce Ability to gain access to other non-HR systems such as financials capabilities, movement, and future trends via automated interfaces (bi-directional) and customer relations to generate some rudimentary metrics Methodology for data input via Lotus Notes or similar and ready for use to capture and update employee performance plansWith the previous table and this example, you can create your own tailored plan with specific initiatives that assist in increasing the maturity of theorganization and advancing toward Talent Management Value Realization. 14
  • 15. ConclusionRealizing value from today’s talent management strategies requires dealing with a rapidly changingenvironment. Organizations must balance the opportunity cost risk of moving too slow with the “rush toautomate” risk of moving too fast. Increasing technology is playing a role as a tool for meeting human capitalbusiness needs and enabling talent management success. However, as the technology stabilizes,implementation issues often emerge as the biggest barriers to value realization. In the case of talentmanagement strategy, for many organizations the most painful Achilles’ heel may be the competency chaosthat often surrounds the competency content that is needed as the anchor for talent analytics and better talentdecisions.By using a Talent Strategy maturity model, organizations can begin to assess where they are in setting theproper competency foundation for their talent management systems, deal with competency chaos, anddetermine what needs to be done to achieve the next level of maturity.By recognizing the need to go beyond immediate attention on technology to resolving implementationbarriers, organizations can more quickly capture the data they need to make better talent decisions now andlay a rock-solid foundation for greater talent management application integration in the future.Realizing value from talent management strategies requires a coherent, competency-based foundation. Thisfoundation will enable organizations to: have a springboard to go from vision to action serve as the basis for aligning talent strategy with business strategy enable execution of an aligned strategy through a focus on highly valued behaviors enable the type of workforce analytic needed to help leaders know how to best address specific business issues and drive specific business outcomes offer line managers a concrete way to add value by improving talent decisions and driving enterprise performance and sustainability Personnel Decisions is a registered trademark of Personnel Decisions International Corporation in the United States and other countries. Copyright © 2008, Personnel Decisions International Corporation. All Rights Reserved. For more information on how we can help your company gain a leadership advantage, call your local PDI office or 1.800.633.4410, or visit www.personneldecisions.com. PDI_1008