0626 clo final

Surviving the Talent Crisis
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Speaker: Gordon Ritchie
Product Evangelist, Enterprise Talent Frameworks
IBM
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Associate Editorial Director
Chief Learning Officer magazine

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Surviving
the
Talent
Crisis
#CLOwebinar
Kellye
Whitney
Associate
Editorial
Director
Chief
Learning
Officer
magazine

Surviving
the
Talent
Crisis
Gordon
Ritchie
Product
Evangelist,
Enterprise
Talent
Frameworks
IBM
#CLOwebinar

© 2014 IBM Corporation
Gordon Ritchie,
Product Evangelist.
Smarter Workforce Talent Frameworks

IBM Smarter Workforce
Agenda
Ø Why we don't understand what skills make up the gap.
Ø How to quantify the importance of understanding the skills gap's impact
on revenue, expenses, etc.
Ø Why it's critical to have a start and an end to be able to measure a gap.
Ø How to transform the gut feel that you have a skills gap into an objective
data source.

Do we understand what skills make up
“the gap”, our skills gap?

What is the capability of the
organization - the strengths
and weaknesses?
How many people have each
competency and what is their
level of mastery?
Organization Capability?
What are the areas of risk?
Which people have key competencies
in the organization? How can we plan
for their potential departure?

Team competency gap analysis
What
competency
gaps
do
we
have
which
would
prevent
us
from
meeCng
our
business
objecCves?
How
will
these
impact
each
funcCon
within
the
organizaCon?

Employee competency gap analysis
How
do
our
team
managers
know
which
employees
require
the
greatest
development?
And
which
competencies
should
they
target
for
development?

Subject matter Expert identification
How can we find out who does
what in the organization so that we
can put the right people on the
right project?

What is meant by “talent”?
Ø Aptitude or Ability?
Ø Capability or performance?
Ø Skills or Behaviours?
Ø Competency or Values?
Ø Human Capital?
Ø Education/Schooling?
What is meant by “gap”?
Ø A gap is a measure of distance
between two points.
Ø To have a gap, you need to know
A) the start point
Skill Innovation B) the end point
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.

Organizational maturity to define its skills and assess the gap
BUSINESS AREA Level 1
AWARENESS
Level 2
TACTICAL
Level 3
STRATEGIC
Level 4 CULTURAL
Processes 1-3 ad hoc 1 -5 repeatable 6-10 repeatable Many repeatable
Business Unit - Learning Basic Learning Expanded Align Learning Strategy Learning seamless in
business strategy
Business Unit – Talent Mgmt Paper Basic / Digital Expanded Seamless in driving
business results
Content Basic HR / Groups By Role & Level Very specific
Competencies Types: Core,
Leadership, Technical?
Core / Paper Core / Digital Job Specific / Digital Comprehensive
Curriculums Basic / Paper Expanded By Role Many levels
Metrics / Testing Basic / Paper By Role By Competency Many Levels
Reporting Basic Expanded High Many Levels
SYSTEMS
Learning Mgmt System Basic: 1-2 years Expanded: 3-4
years
High: 5+ years Customized
Talent/Performance/Skills Basic / Paper Basic / Digital Expanded High
Webcasting / Collaboration Basic Expanded High Integral
Back Office Basic / Manual Expanded / Manual Basic Integration Tight Integration

Challenges defining skills
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Manual
process
Budget
Constraints
Source: Competencies, Compensation and
Technology Luncheons.- 2012
Too difficult to
define
competencies
Too many
jobs
Lack of
executive
support
And what do we mean by skills anyway?

So lets say “skills” or “competencies,” …
• Core
• Leadership
• Functional
• Technical
• Behavioural
• Traits
• CARS
• BARS
• Proficiency levels
• Assessment
• Time consuming
• Hard to do
• Hard to prove ROI
• No impact
• Tried it
• Tried it again,
• Done them
• Someone else did some too
• Too HR
• Not important or relevant
• Fewer = easier

We’re Aligned to the Organizational hierarchy
Functions
and
Families
Core
and
Leadership
Jobs
and
Roles
• Reflects strategy and culture
• Defines expectations at each level
• Enables a leadership pipeline
• Reflects functional strategy
and key skills
• Applies to all functional
incumbents and candidates
• Reflects job-specific knowledge and skills
• Well suited for skills assessment
and development
• Applies to incumbents and candidates by
position
Getting
Started
Org Strategy
Job
Skills
Department
Strategy

Focus efforts on the biggest area for impact
PRODUCS/SERVICES/CUSTOMERS
Jobs
and
Roles
• Reflects job-specific knowledge and skills
• Well suited for skills assessment and
development
• Applies to incumbents and candidates by
position
Functions
and
Families
• Reflects functional strategy
• Reflects strategy and culture
• Defines expectations at each level
• Enables a leadership pipeline
and key skills
• Applies to all functional
incumbents and candidates
Core and
Leadership
Scale
Impact
Volume
Turnover
Repetition

“Talent Gaps” Present one of the Biggest Opportunities for HR
to make a difference in your organization!
• 66% of CEOs report the absence of necessary
skills is their biggest talent challenge
- PwC’s 2013 global CEO Study
• More than 60% of companies cite “capability gaps”
as one of their top talent challenges
- Bersin by Deloitte 2013
• CEOs rate “human capital shortages” as the number
one item on their priority lists for 2014
- Conference board
• 39% of CEOs say they are “barely able” or “unable” to
meet the demand for talent
- Deloitte: Disrupting the CHRO
• “Skills are the new arms race…nearly 70% of global
organizations feel they lack the required skills to
compete...”
- Bersin: Building a Smarter Workforce, 2013
60+%
Absence of
Necessary Skills

How to quantify the importance of understanding the
skills gap's impact on revenue, expenses, etc.

SHRM
reported
in
their
2012
and
2013
Employee
Job
SaEsfacEon
survey
that
recogniEon
for
the
skills
25
WHAT ANALYSTS SAY…
“Competencies
are
the
currency
of
Talent
Management”,
Josh
Bersin,
2007
“…defines“competency
management”
as,
“…
The
set
of
pracEces
that
idenEfy
and
opEmize
the
skills
and
competencies
required
to
deliver
on
the
business
strategy.”
The
Buyers
Guide
to
Competency
Management
Technology
SoluEons,
2013
“Skills
are
the
new
arms
race;
our
newest
research
shows
that
nearly
70
percent
of
global
organizaEons
feel
they
lack
the
required
skills
to
compete..”
Building
a
Smarter
Workforce,
2013
“..the
most
criEcal,
foundaEonal
component
of
the
roadmap
is
the
establishment
of
job
responsibiliEes
and
competencies…
If
those
iniEal
foundaEonal
elements
are
missing,
then
the
rest
of
the
organizaEon’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
compeEEve
advantage,
they
must
commit
to
developing
the
right
skills
internally”
Corporate
Learning
Factbook,
2012
you
have
is
the
#1
employee
job
saEsfacEon
issue,
above
pay,
benefits,
etc.

What’s keeping the leaders of your organization awake?
CEOs Report Talent Gaps will directly impact Client Success:
• 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
With a belief in training as the answer, to address
Talent Gaps at all levels organizations have
directly increased their L&D budgets by
11%.
- Bersin by Deloitte

Putting it all together.
Imagine who wouldn’t invest to stop these losses…
(data from the Human Capital Institute)
Planning for talent: 70% of organizations have a weak pipeline; cost per day when operating
without a key player: $7k
Acquiring talent: Cost of a poor hire: $300K-$500K
Engaging talent: Rate of efficiency at which most businesses operate because of low
engagement: 30%
Developing talent: Average time required for a new manager to become productive: 6 months
Consider that the # of employees the average manager is multiplied by the number of people
who work for them.
Deploying/Assigning talent: Percentage of a company’s employees who are well-suited for
their roles: 20%
Retaining talent: Cost of losing a talented employee: $250K - $500K
Evaluating talent: The value of a top performer is 2-4x the performance of average employees

Competency Assessments that Drive Results
Internal challenges to address via assessments
Weak or limited leadership pipeline
Consistency in employee competence
Excessive first year turnover among new hires
Lack of skills to meet organizational needs
Employee performance
Quality of hire
Employee productivity
Overall turnover
Recruiting costs
Impact of Assessments
in Talent Management
Source: Aberdeen 2009 Study; Assessments in Talent Management

Two areas of cost
Cost of Defining Skills: Build vs buy
Multiply the Avg HR hourly rate ($XX) X 40-80 hours per job review X # of jobs
Cost of a Job Competency Profile or Library / cost of manual effort.
Time to impact/market: ROI
Critical roles at 110% productivity
Now vs the number of hours it would take to build before it even hits the employees.
Sales = for every $10million in revenue, that’s an extra $1million.
Customers = for every $10 spent that’s an extra $1 per customer
Payroll = for every $1million of payroll, that’s $100,000 saved.

Communication IBM / IBM Competency Implementation
Development
FOCUS 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 applications; 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
§ Key success criteria and
themes.
application
Integration
Iteration
§ Position models as
prototypes for learning
how to change
behaviors
(vs. a perfect output
image).
Launch &
Recommended
Approach
80%
of
the
effort
20%
of
the
effort
Typical Competency Development
application
Integration
Iteration
Launch &
Communication
Implementation
20%
of
the
effort
(if
able
to
move
out
of
development
stage)
Typical
Approach
80%
of
the
effort

Greater than the sum of the development
Job Skills Framework Investment
• $XXX,XXX one time fee / XX,XXX employees = $X.XX investment per employee.
• What is your average employee tenure? Capitalized over 3 years it’s $X.XX per employee
year
• Content investment = cost of 1 employee working full time for a year to develop this
Competency Data Development
• Strategic decisions performed once have major impact, tactical actions performance by
many people, many times have an equally major impact but can be less visible.
• If a defined competency with behavioural descriptors of excellent performance across
XXXXX people delivers a 10% increase (Aberdeen Group, Assessments 2011) in
productivity for that task
• Any internally developed output is a first Version 1 and introspective view.

ROI Investments
Applying a Job Competency Framework through your Talent
Management software
• Increase in performance by using competencies of over 10% on
15000 employees bottom line cost or contribution:
• Sales * 10% - Project cost = ROI (i.e. improved productivity,
reduced hiring costs, etc.)
Succession Planning
• Focus hiring on competency behaviours
• 1 correctly placed internal candidate, rather than an external hiring
exercise would pay for the whole investment in the competency
data.

ROI Investments
OD Productivity
• 4+ months to complete current job function.
• Using an 80% complete model, a function could be done in 3-4 weeks.
• That accelerates employee productivity delivering a much quicker bottom
line impact.
• What is the employee cost of this time? What is the risk of using only inward
looking checkpoints?
Learning and Development Strategies
• Employee allocated 24 hours learning: $1,440 of opportunity/salary cost.
• Across all the impacted employees, you would need to identify only 13
days per year of unnecessary training. This does not take into account
any cost associated with learning, and the increased ROI.

Why it's critical to have a start and an
end to be able to measure a gap.

COMPETENCIES ARE THE FOUNDATION
“Conclusion: The most successful organizations rely on
a talent infrastructure that encompasses the right
competencies and job profiles as a basis for
integration.” Integrated Talent Management:
A roadmap for success.
Bersin and Associates, 2012
Performance
Management
Using a Job Competency Framework
provides a Clear, Common and Consistent
language for Talent Management.
It connects processes and enables integration across
HRIS and Talent Management investments, already made.
Career &
Succession
Planning
Functional Job &
Competency
Framework
Learning
Needs
Analysis
Risk
Analysis
Recruitment
& Selection
Resource
Planning
Compensation

Organizational Talent Data
What’s your organizational capability?
Who needs what learning to be more effective?
How can you find your experts?
How can you make the most of the talent you have?

Its Cheaper to grow, than buy.
• How much do you spend on recruitment?
• How does that compare to the learning budget? Understand the financial
risk and effort put into buying external experience.
• Does your hiring requisition process first come to L&D to mine the talent
pool for internal candidates that can be developed?
• Partner with your hiring managers to understand the business needs.

• Corporate Learning & Development Spending Topped $130 Billion
Throwing money at a problem we haven’t defined
“Yet many don’t know where this spend is focused” Bersin by Deloitte
– In other words, organizations are throwing L&D funds at their talent gaps without actually
knowing what gaps they have!
Workforce Science and experience suggests this is the WRONG approach –
throwing jelly at a wall does not stick.
Critical steps for success, Bersin by Deloitte:
• Build a “global supply chain” for
capabilities
• Identify capability gaps today and for
tomorrow
• Build a pipeline of “known gaps in the
future” to build a skills supply chain now
• Develop people to deepen their skills
where needed
BUT……. Organizations Lack the Tools to
Define and Identify Talent Gaps to address
Future Talent Needs

How to transform the gut feel that you have
a skills gap into an objective data source.

Vertical Frameworks General Competency Frameworks
Competencies (2,000+) Application Accelerators
The IBM Talent Frameworks
• 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 – 36
Individual – 28
Management – 22
Leadership – 20
Functional/Technical – 1700
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.
• 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.
– Banking & Fin Services -- OEM High Tech Software
– Construction -- Insurance
– Consulting -- Manufacturing
– Education -- Media / Publishing
– Energy -- Retail
– OEM High Tech Hardware - CRM Outsource Mgmt
– Pharmaceutical - Real Estate
– Healthcare: Clinical/Admin
– General Corporate Functions (HR, Finance, Legal,
Sales)
– Information Technology (IT) Operations
Job Families (145+)
Jobs Profiles (2,500+)

Defining, Assessing and Managing your Skills Gap
The
3
phases:
Map Job Roles
Validate Competency Profile
Map to Organization
Assess Competencies
Validate Assessments
Analyze and Identify skills gaps
Set Goals, Objectives and Learning
Analyze Organizational Capabilities

Where you can apply it
Where it helps How it helps What you need
Attracting
Set expectations of who will be successful
candidates
in the job beyond a job description
Demonstrable behaviours of what you
expect
Hiring
Decisions
Smarter hiring decisions based on capability
to do the job
Interview questions tied to the competency
behaviours required
Onboarding Improve chance of success and retention
with accelerated time to productivity
Demonstrable expectations of what good
looks like
Managing Support managers development discussions
with tools to improve trust and impact.
Skill focused coaching tips, SMART goals,
and extended expectations for growth
Engagement Provide clear view of portable/mobile skills
to engage the engageable.
Reusable competencies across roles,
levels and functions to provide skills based
career matrix.
Performance
Management
Provide job specific performance criteria for
evaluation and contribution.
Job specific competencies and expected
levels of demonstrable behaviour
Development Drive up learning as its easier to find
content in your LMS
Learning catalogue mapped to
competencies
Compensation
Planning
Understand the jobs you are matching
beyond just the salary survey job title.
Match jobs based on skills, tied to
excellence as performance to pay.

Conclusion

How do I develop the next
generation of leaders for
a more global, flexible, and
diverse workforce?
How can I rapidly develop,
deploy and optimize
skills and capabilities
to match emerging
opportunities?
Whats keeping you up?
How can I attract and
hire more people just
like my top performers?
How do I foster
knowledge sharing
and collaboration to
drive more innovation?
How can I predict what
different segments of my
employees need and what
actions to take to
optimize business
How do I know if I’m
recognizing and
rewarding my employees
optimally?
outcomes?
How do I find real-time,
hidden, game-changing
insights from data
available inside and
outside my organization?
How can I bring people
into the organization
so they’re productive
from Day 1?
How do I gain
continuous insight
into what my
employees think of
the organization?
How do I know salary
planning is aligned with
our business strategy?

“Talent Gaps” Present one of the Biggest Talent Opportunities
in your organization!
• 66% of CEOs report the absence of necessary
skills is their biggest talent challenge
- PwC’s 2013 global CEO Study
• More than 60% of companies cite “capability gaps”
as one of their top talent challenges
- Bersin by Deloitte 2013
• CEOs rate “human capital shortages” as the number
one item on their priority lists for 2014
- Conference board
• 39% of CEOs say they are “barely able” or “unable” to
meet the demand for talent
- Deloitte: Disrupting the CHRO
• “Skills are the new arms race…nearly 70% of global
organizations feel they lack the required skills to
compete...”
- Bersin: Building a Smarter Workforce, 2013
60+%
Absence of
Necessary Skills

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