Competency, Capability And
Business Improvement
Tim Conway, Director, C-Metrics Pty Ltd
M: +61 410 628 655
E: tim.conway @...
COMMERCIAL-IN-CONFIDENCE
Agenda
• The problem
• The project context
• Dancing the tango
• Reputation and relationships
• S...
COMMERCIAL-IN-CONFIDENCE
3
“If you can measure it, you can manage it; if you can’t
measure it, you can’t manage it; if you...
COMMERCIAL-IN-CONFIDENCE
Standish Group
“Chaos” Reports
4
COMMERCIAL-IN-CONFIDENCE
Standard Diagnoses
5
• Poor planning
• Unclear goals and objectives
• Objective(s) changes during...
The Challenge:
How do we create some foresight,
which has the clarity of hindsight?
6
COMMERCIAL-IN-CONFIDENCE
Problem Statement #1:
Reputation & Capability
– Who to buy from?
– Who to sell to?
– Who can deli...
COMMERCIAL-IN-CONFIDENCE
Problem Statement #2:
Projects: Who’s Responsible? Are they Capable?
8
Who has (a) the responsibi...
COMMERCIAL-IN-CONFIDENCE
Problem Statement #3:
It takes two...!
9
COMMERCIAL-IN-CONFIDENCE
Successful Relationships
10
COMMERCIAL-IN-CONFIDENCE
A Reputation Model:
eBay
Enlarge
11 bids
, Visa/MasterCard, Money order/Bank
cheque, Other - See ...
COMMERCIAL-IN-CONFIDENCE
An Enterprise Version:
Components
12
Competence
Capability
Capacity
Culture
Commercial
Viability
...
COMMERCIAL-IN-CONFIDENCE
Vision
13
A single rating = a snapshot; multiple ratings
over time measure business improvement
a...
COMMERCIAL-IN-CONFIDENCE
Methodology
Open Standards Based
• Mutual Assessment Framework (or an opinion market)
– Competenc...
COMMERCIAL-IN-CONFIDENCE
Symmetric Assessment
Framework
Competencies
Provider or Partner2
Capability
Program Complexity
Pu...
COMMERCIAL-IN-CONFIDENCE
Project/Relationship
Classification
16
COMMERCIAL-IN-CONFIDENCE
Competencies
17
Competencies are fine...
...but Capabilities are critical to success
• Capabilities delivered in the project
• Processes d...
COMMERCIAL-IN-CONFIDENCE
Capabilities (P3M3)
19
Who should do the scoring?
20
The parties. They are best placed.
The challenge is to minimise bias
COMMERCIAL-IN-CONFIDENCE
Capability Scoring
• On-line tool
• Self-assessment
• Counterpart assessment
• Moderation
• When?...
COMMERCIAL-IN-CONFIDENCE
Assessing Culture
• Brief diagnostic to measure:
– Agility
– Direction
– Engagement
– Innovation
...
COMMERCIAL-IN-CONFIDENCE
Process
23
Inititiate
•  Willing parties
•  Project,
contract or
relationship
•  Identify
respond...
COMMERCIAL-IN-CONFIDENCE
Outputs
• A published, overall “rating”
for project classifications
• Detailed scoring –
competen...
COMMERCIAL-IN-CONFIDENCE
Competency Example
25
COMMERCIAL-IN-CONFIDENCE
Capability Example
26
COMMERCIAL-IN-CONFIDENCE
Culture Example
27
COMMERCIAL-IN-CONFIDENCE
Benefits
• Creates an objective, independent evidence base to establish
“capability reputation” f...
COMMERCIAL-IN-CONFIDENCE
Applications
• Customer – supplier
• Purchaser – provider
• Shared services
• Policy – service de...
COMMERCIAL-IN-CONFIDENCE
Current participants
• Major government agencies
• Major vendors
• Large public sector shared ser...
Questions?
31
COMMERCIAL-IN-CONFIDENCE
Acknowledgements
• OGC
– PRINCE2, ITIL and P3M3 are all trademarks of the UK
Office of Government...
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Presentation to the Canberra Branch of the Australian Computer Society, October 2010

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Competency, Capability and Business Improvement: using capability measurement to enable

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Presentation to the Canberra Branch of the Australian Computer Society, October 2010

  1. 1. Competency, Capability And Business Improvement Tim Conway, Director, C-Metrics Pty Ltd M: +61 410 628 655 E: tim.conway @ c-metrics.com W: www.c-metrics.com © C-Metrics™ 2009. All rights reserved. No part of this document may be reproduced in any form without the express written permission of C-Metrics Pty Ltd “C-Metrics” and the C-Metrics logo are trademarks of C-Metrics Pty Ltd and must not be used without prior permission and appropriate acknowledgement
  2. 2. COMMERCIAL-IN-CONFIDENCE Agenda • The problem • The project context • Dancing the tango • Reputation and relationships • Solutions must be standards-based • Methodology • Output • Benefits • Problem avoidance 2
  3. 3. COMMERCIAL-IN-CONFIDENCE 3 “If you can measure it, you can manage it; if you can’t measure it, you can’t manage it; if you can’t manage it, it’s because you can’t measure it; and if you managed it, it’s because you measured it... ...but don’t mistake the measures themselves for the things they were intended to measure.” Art or Science?
  4. 4. COMMERCIAL-IN-CONFIDENCE Standish Group “Chaos” Reports 4
  5. 5. COMMERCIAL-IN-CONFIDENCE Standard Diagnoses 5 • Poor planning • Unclear goals and objectives • Objective(s) changes during project • Unrealistic time/resource estimates • Lack of executive support or user involvement • Failure to communicate and act as a team • Inappropriate skills
  6. 6. The Challenge: How do we create some foresight, which has the clarity of hindsight? 6
  7. 7. COMMERCIAL-IN-CONFIDENCE Problem Statement #1: Reputation & Capability – Who to buy from? – Who to sell to? – Who can deliver? – Who will pay? – Who knows what they want (specifications)? ‣ Delivers quality, timeliness and cost effectiveness ‣ Manages uncertainty ‣ Creates/offers/delivers trust 7
  8. 8. COMMERCIAL-IN-CONFIDENCE Problem Statement #2: Projects: Who’s Responsible? Are they Capable? 8 Who has (a) the responsibility and (b) the capabilities to deliver?
  9. 9. COMMERCIAL-IN-CONFIDENCE Problem Statement #3: It takes two...! 9
  10. 10. COMMERCIAL-IN-CONFIDENCE Successful Relationships 10
  11. 11. COMMERCIAL-IN-CONFIDENCE A Reputation Model: eBay Enlarge 11 bids , Visa/MasterCard, Money order/Bank cheque, Other - See seller's payment instructions, Bank Deposit | See details 7 day money back, buyer pays return shipping | Read details Description Postage and payments Back to Search Results | Listed in category: Jewellery > Watches > Wristwatches > Men Watch this item Rolex Cosmograph Daytona Cosmograph steel and gold Rolex Cosmograph Daytona Auto Zenith base Cal Grey Dial Item condition: Used Time left: 2 days 10hours (11 Dec, 2009 01:00:55 AEDST) Bid history: Current bid: AU $7,100.00 Enter maximum bid: AU $ (Enter AU $7,200.00 or more) Watch this item Postage: Local Pickup | See all details Estimated delivery time varies Payments: Returns: Seller info shonie0 ( 1208 ) 100% Positive feedback Ask a question Save this seller See other items Visit store: Armadale Watch Gallery Other item info Item number: 330383158933 Item location: South Yarra , Victoria, Australia Posts to: Worldwide See exclusions Share Print Report item Sign out Contact Us | Site Map Categories Motors Stores Travel Real Estate Dating Services Jobs Search Advanced Search Buy Sell My eBay Community Help Place bid Item specifics - Wristwatches Brand: Rolex Type: Self-winding Model: Daytona Casing: Stainl. Steel/Yell. Gold Year of manufacture: 1997 Watchband: Stainl. Steel/Yell. Gold Condition: Used Gender: Men's Function & Features: Chronograph, Water Resistant Place bid Home > Community > Feedback Forum > Feedback Profile Feedback Profile shonie0 ( 1208 ) Positive Feedback (last 12 months): 100% [How is Feedback Percentage calculated?] Member since: 09-Apr-99 in Australia Member Quick Links Contact member View items for sale View seller's Store View more options 1,127 Feedback received (viewing 1-25) Revised Feedback: 0 G'day (yawn!)! Sign out Contact Us | Site Map Advanced SearchAll Categories Search Categories Motors Stores Travel Real Estate Dating Services Jobs Buy Sell My eBay Community Help Recent Feedback Ratings (last 12 months) 1 month 6 months 12 months Positive 0 20 79 Neutral 0 0 0 Negative 0 0 0 Detailed Seller Ratings (last 12 months) Criteria Average rating Number of ratings Item as described 44 Communication 44 Postage time 44 Postage and handling charges 43 Feedback as a seller Feedback as a buyer All Feedback Feedback left for others Back to item description Bid History To help keep the eBay community safe, enhance bidder privacy, and protect our members from fraudulent emails, only you and the seller of the item can view your User ID in bid history. Other members will see anonymous names. Bidders: 7 Bids: 11 Time left: 2 days 10 hours 33 mins Duration: 7 days Only actual bids (not automatic bids generated up to a bidder's maximum) are shown. Automatic bids may be placed days or hours before a listing ends. Learn more about bidding. Show automatic bids Bidder Bid Amount Bid Time a***o ( 92 ) AU $7,100.00 08-Dec-09 07:40:16 AEDST 2***h ( 0 ) AU $7,000.00 06-Dec-09 12:03:05 AEDST 0***m ( private ) AU $7,000.00 08-Dec-09 00:36:04 AEDST a***o ( 92 ) AU $6,750.00 07-Dec-09 22:31:20 AEDST e***6 ( 69 ) AU $6,500.00 04-Dec-09 16:26:25 AEDST c***n ( 225 ) AU $6,010.00 04-Dec-09 11:21:49 AEDST e***6 ( 69 ) AU $6,000.00 04-Dec-09 07:38:58 AEDST c***n ( 225 ) AU $5,810.00 04-Dec-09 11:21:26 AEDST d***l ( 293 ) AU $5,501.01 04-Dec-09 05:02:32 AEDST m***w ( 229 ) AU $5,500.00 04-Dec-09 07:19:55 AEDST c***n ( 225 ) AU $5,000.00 04-Dec-09 04:14:46 AEDST Starting Price AU $5,000.00 04-Dec-09 01:00:55 AEDST If you and another bidder placed the same bid amount, the earlier bid takes priority. You can retract your bid under certain circumstances only. Item number: 330383158933 Rolex Cosmograph Daytona Cosmograph steel and gold See item description Buy It Now price is no longer available since bidding has started. Current bid: AU $7,100.00 Postage: Free -- Local Pickup. Additional services available. About eBay | Announcements | Register | Security Centre | Feedback Forum | Site Map | Policies | Help | Contact Us | Advertise Copyright © 1995-2009 eBay Inc. All Rights Reserved. Designated trademarks and brands are the property of their respective owners. Use of this Web site constitutes acceptance of the eBay User Agreement and Privacy Policy. eBay official time G'day (yawn!)! Sign out Contact Us | Site Map Advanced SearchAll Categories Search Categories Motors Stores Travel Real Estate Dating Services Jobs Buy Sell My eBay Community Help Enter your maximum bid: Place bid (Enter AU $7,200.00 or more)
  12. 12. COMMERCIAL-IN-CONFIDENCE An Enterprise Version: Components 12 Competence Capability Capacity Culture Commercial Viability Complexity (of project) Compliance Confidence
  13. 13. COMMERCIAL-IN-CONFIDENCE Vision 13 A single rating = a snapshot; multiple ratings over time measure business improvement and delivery performance
  14. 14. COMMERCIAL-IN-CONFIDENCE Methodology Open Standards Based • Mutual Assessment Framework (or an opinion market) – Competency: • Assessed against certification standards; evidence-based Quality, Project Management, Risk Management, Service Management, Environmental, OH&S… – Capability: • Assessed against 5 stage CMM scale (P3M3 comparable) Ad hoc ––> Repeatable ––> Defined ––> Managed ––> Optimised – Capacity: • Assessed by reference to current and future workload; special requirements – Culture of the organisation • Culture diagnostic – hierarchical vs self-directed etc – Complexity • Assessed by reference to project classification – Commercial Viability: • Standard business referencing – Compliance • Declaration; provision of a code of ethics 14
  15. 15. COMMERCIAL-IN-CONFIDENCE Symmetric Assessment Framework Competencies Provider or Partner2 Capability Program Complexity Purchaser or Partner1 Capability 15
  16. 16. COMMERCIAL-IN-CONFIDENCE Project/Relationship Classification 16
  17. 17. COMMERCIAL-IN-CONFIDENCE Competencies 17
  18. 18. Competencies are fine... ...but Capabilities are critical to success • Capabilities delivered in the project • Processes documented and applied • People trained, tested and empowered 18
  19. 19. COMMERCIAL-IN-CONFIDENCE Capabilities (P3M3) 19
  20. 20. Who should do the scoring? 20 The parties. They are best placed. The challenge is to minimise bias
  21. 21. COMMERCIAL-IN-CONFIDENCE Capability Scoring • On-line tool • Self-assessment • Counterpart assessment • Moderation • When? – Concept viability (“can we do this?”) – At project initiation; – Gate 0; circuit-breaker – Repeated with Gateway Reviews; or periodically during program • Multiple snapshots – time series to measure progress 21
  22. 22. COMMERCIAL-IN-CONFIDENCE Assessing Culture • Brief diagnostic to measure: – Agility – Direction – Engagement – Innovation – Execution – External orientation – Performance orientation – Trust • To inform the parties 22
  23. 23. COMMERCIAL-IN-CONFIDENCE Process 23 Inititiate •  Willing parties •  Project, contract or relationship •  Identify respondents Assess •  Competencies •  Capabilities •  Culture •  Complexity of project Report •  Overall scores •  Gaps •  Moderate discussion 5-10 working days
  24. 24. COMMERCIAL-IN-CONFIDENCE Outputs • A published, overall “rating” for project classifications • Detailed scoring – competency, capabilities against different project types • P3M3 build up, as projects assessed • Exceptions listed 24 A B C D E F G H A B C D E F G H 0 1 2 3 4 5 Seeking Complements Customer Supplier
  25. 25. COMMERCIAL-IN-CONFIDENCE Competency Example 25
  26. 26. COMMERCIAL-IN-CONFIDENCE Capability Example 26
  27. 27. COMMERCIAL-IN-CONFIDENCE Culture Example 27
  28. 28. COMMERCIAL-IN-CONFIDENCE Benefits • Creates an objective, independent evidence base to establish “capability reputation” for all players in projects • Standardised, comparable scoring mechanism with counterpart purchaser-provider, in real world project context ‣ Both benchmarking and capability maturity (P3M3) ‣ Highlights relative strengths/weaknesses in relationship or program delivery • Contextual: scores relative to complexity (size, scope, risk …) • Comprehensive process, fast and efficient ‣ Minimal resource impact, rapid turnaround ‣ Current, timely data available (“real time”) • Complete picture of performance: ‣ competence, capability, capacity and commercial viability 28
  29. 29. COMMERCIAL-IN-CONFIDENCE Applications • Customer – supplier • Purchaser – provider • Shared services • Policy – service delivery • Internal collaboration • … • … 29
  30. 30. COMMERCIAL-IN-CONFIDENCE Current participants • Major government agencies • Major vendors • Large public sector shared services agency – With key vendors – With key clients • External supplier, internal systems integration • Internal parties delivery policy and service delivery 30
  31. 31. Questions? 31
  32. 32. COMMERCIAL-IN-CONFIDENCE Acknowledgements • OGC – PRINCE2, ITIL and P3M3 are all trademarks of the UK Office of Government Commerce – The Common Assessment Framework (CAF) is a methodology, parts of which C-Metrics has been given access to, on a shared IP basis • Culture-Strategy Fit, Inc (Canada) • Relevant ISO/Australian Standards & related practices 32

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