The document discusses building professional IT capability. It summarizes IBM's study of 404 companies regarding how they are improving workforce performance. Developing an adaptable workforce is critical to compete in today's changing environment. However, only a small number of companies believe their workforce is very capable of adapting. To build adaptability, companies should focus on predicting future skills, locating expertise, and fostering collaboration. The barriers to collaboration are often organizational rather than technical. Effective talent management and workforce analytics are also needed to enhance performance.

1. IBM Global Business Services
Unlocking the DNA
of the Adaptable Workforce
Building P f
B ildi Professional IT Capability
i l C bilit
Version 1.0
November 26, 2007
© Copyright IBM Corporation 2007

2. IBM Global Business Services
We interviewed over 400 companies from 40 countries to understand
p
how organizations are improving workforce performance
Project objectives Project methodology
• Understand how organizations are • Interviews with 404 Chief Human
transforming their workforces to
t f i th i kf t Resources officers and senior HR
R ffi d i
compete more effectively in today’s executives (over 75% conducted face-
business environment to-face)
• Id tif l di practices and
Identify leading ti d • 40 countries across Asia Pacific,
ti A i P ifi
opportunities for organizations to Europe, Latin America, and North
improve their overall workforce America
p
performance
• Mix of industries and organization sizes
• Combination of quantitative and
q
qualitative survey information, as well as
y
financial data, secondary research, case
studies and client experience
2 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

3. IBM Global Business Services
Enhancing workforce performance in today’s turbulent business
g p y
environment requires four key components
An adaptable workforce that can rapidly respond to changes
in the outside market
Effective leadership to guide individuals through change
and deliver results
An integrated talent management model that addresses
the entire employee lifecycle
Workforce analytics that can deliver strategic insight
and measure success
3 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

4. IBM Global Business Services
Developing an
Adaptable Workforce –
A Critical Capability
4 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

5. IBM Global Business Services
Multiple forces drive the need to develop a workforce that is
p p
able to adapt to changing business conditions
Security
Concerns
New Business
Globalization
Models
Workforce
Adaptability
Changing Market
Demographics Volatility
Global
Competition
“Businesses change every day, and the development
of a workforce who can cope with change is not easy.”
easy
- Japanese transportation company
Source: IBM Global Human Capital Study 2008.
5 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

6. IBM Global Business Services
Only a small number of companies believe their workforce is “very
y p y
capable” of adapting to change
How would you rate your workforce’s ability to adapt to
potential changes in the business environment?
53%
30%
14%
3% 0%
Very capable Generally Somewhat Not capable of Don't know
of adapting to capable of capable of adapting to
change adapting to adapting to change
change change
Source: IBM Global Human Capital Study 2008.
6 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

7. IBM Global Business Services
Developing the ability to predict future skills, identify expertise, and
p g y p , y p ,
foster collaboration can help build an adaptable workforce
Characteristics of companies i di ti
Ch t i ti f i indicating th i workforce
their kf
“Very capable of adapting to changing business conditions”
Able to predict 80%
Very adaptable to
future skills
56% change
All other companies
Effective in 74%
locating experts
55%
Effective in 72%
collaboration
49%
Source: IBM Global Human Capital Study 2008.
7 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

8. IBM Global Business Services
The primary barriers to collaboration appear to be organizational,
p y pp g ,
rather than technical in nature
How significant are the following barriers to collaboration
g g
across your organization?
Organizational silos inhibit
g
15% 27% 29% 20% 7%
collaboration
Individuals are too busy to assist
9% 31% 34% 15% 10%
others across the organization
Performance measures not aligned
to reward individuals for collaboration 12% 25% 24% 19% 20%
Technological tools do not
effectively support collaboration
y pp 8% 20% 28% 22% 22%
Collaboration not viewed as
important 9% 12% 20% 21% 37%
Concerns about intellectual property
p p y
limit effective collaboration 3% 9% 14% 22% 51%
[1] Very significant [2] [3] [4] [5] Not at all significant [6] NA or Don't know
Source: IBM Global Human Capital Study 2008.
8 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

9. IBM Global Business Services
Organizations looking to improve their workforce adaptability
should focus on three areas
• Create a formal process to anticipate the
Predict future skills projected demand for skills needed to
deliver on the business strategy
• Develop an expertise location capability that
p p p y
combines formal skills management
Locate expertise
efforts with employee profiles and other
social networking technologies
• Foster collaboration through communities,
performance measures and embedding
Collaborate
collaborative technologies into day-to-day
day to day
processes
Source: IBM Global Human Capital Study 2008.
9 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

10. IBM Global Business Services
Our Point of View
Integrated talent management strategy and processes align workforces to business objectives
I t t dt l t t t t d li kf t b i bj ti
which drive innovation and growth across the enterprise
Performance Learning and
Management Development
Enabling
g
enterprise
innovation and
Enterprise performance Enterprise
Strategy through improved Performance
workforce
effectiveness
Workforce Collaboration
Management and Portals
10 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

11. IBM Global Business Services
Motivate and Develop
Before we can Motivate and Develop
our people we need to be able to
Performance Learning and
answer some key questions
Management Development
Enabling
Enterprise
Strategy
enterprise
innovation
Enterprise
Performance
o Why do we want to have IT Professionals
and
performance
through
at all?
Workforce Collaboration
improved
Management and Portals
workforce
e ect e es
effectivenes
s
o What roles do we want the IT Professionals
to play?
o How will we know when they have been
successful?
o How many of them do we need to achieve
the outcomes desired?
o How will we ensure that we make the most
of the capability that we have got?
11 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

12. IBM Global Business Services
Why do we want to have IT Professionals at all?
(eg IT Architects)
• T drive compliance with and
To d i li ith d
exploitation of an Enterprise
Architecture
• To maximise the re-use of assets and
components within the organisation
• To ensure consistency of
implementation or systems
i l t ti t
• To deliver better Architected and Performance Learning and
Management Development
Enabling
Designed solutions that meet the Enterprise
Strategy
enterprise
innovation
and
Enterprise
Performance
needs of the business
performance
through
Workforce Collaboration
improved
Management and Portals
workforce
effectivenes
s
12 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

13. IBM Global Business Services
What roles do we want the IT Professionals to play?
Solution
Skills
Level Role Technology
Competency
Products
Performance Learning and
Management Development
Enabling
Enterprise
enterprise Enterprise
Strategy innovation Performance
and
performance
through
Workforce Collaboration
improved
Management and Portals
workforce
effectivenes
s
13 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

14. IBM Global Business Services
How will we know when they have been successful?
We need to be clear about what good looks like
•What are the outcomes that are required?
•What do the deliverables look like?
What
•How is the role viewed by other key stakeholders?
•How did they work/interact as community?
/ ?
Performance Learning and
Management Development
Enabling
Enterprise
enterprise Enterprise
Strategy innovation Performance
and
performance
through
Workforce Collaboration
improved
Management and Portals
workforce
effectivenes
s
14 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

15. IBM Global Business Services
How many of them do we need to achieve the outcomes
desired?
d i d?
Before we can answer this question
we need to answer another few key
Performance Learning and
Management Development
questions
Enabling
enterprise
o Which roles/skills do I want to grow and
Enterprise Enterprise
Strategy innovation Performance
and
performance
through
Workforce Collaboration
improved
develop within the organisation?
Management and Portals
workforce
effectivenes
s o What will I be keeping on-shore and what
on shore
will be moving off-shore?
o What skills will not be required going
forward?
f d?
o How many do we need to execute our
p
plans?
Workforce Management
g
15 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

16. IBM Global Business Services
How will we ensure that we make the most of the capability that
we have got?
o Ongoing development of professionals in-
line with Resource Strategy and Business
Needs
o Connect and motivate professionals to
operate as part of self supporting
communities
iti
o Consistently deploy professionals where
there is greatest business need and they
g y
can deliver greatest value
o Rigorously apply performance management Performance Learning and
Management Development
to ensure that good performance is Enabling
enterprise
Enterprise Enterprise
recognised and rewarded and poor Strategy innovation
and
performance
Performance
performance is identified and addressed. through
Workforce Collaboration
improved
Management and Portals
workforce
effectivenes
s
16 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007

17. IBM Global Business Services
Enhancing workforce performance in today’s turbulent business
g p y
environment requires four key components
An adaptable workforce that can rapidly respond to changes
in the outside market
Effective leadership to guide individuals through change
and deliver results
An integrated talent management model that addresses
the entire employee lifecycle
Workforce analytics that can deliver strategic insight
and measure success
17 Global Human Capital Study 2008 | 1-Dec-07 © Copyright IBM Corporation 2007