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2008 CONFERENCE




Making IT Talent Work.
Using SFIA to create an
effective IT organisation



Tom Fuller
04 December 2008
An effective IT organisation focuses on people,
processes and control as well as technology

     An IT Effectiveness Framework…                                                       …and its outcomes
       Client
                    Architecture   Programme    Applications     Service      Vendor
     (Business)
                     & Planning     Delivery    Development    Management   Management
     Management


                                                                                         Efficiency
    People:                          Skills and capabilities
                                     Behavioural Change                                                          Reduce           Consolidation
                                                                                            Reduce
                                     Succession Planning                                                        Reaction              and
                                                                                             Costs
                                                                                                                 Times           Standardisation



    Process:                         Operating Models & Enterprise Architecture
                                                                                         Effectiveness
                                     Service Delivery e.g. ITIL/ISO20000
                                     Project Delivery e.g. SEI CMMI                                           End to End
                                                                                           Business                                Consistent
                                                                                                                Service
                                                                                           Relevance                              Nomenclature
                                                                                                              Management

    Controls:                        Objectives and measures e.g. COBIT, BS7799
                                     KPIs and Management Information
                                     Finance e.g. budgeting, recharging                  Quality
                                                                                                              Maximise
                                                                                                                                    Ensure
                                                                                           Increase            On-Time/
                                                                                                                                    Secure
    Technology:                      Automated Testing                                     Reliability        On-Budget
                                                                                                                Delivery
                                                                                                                                   Operations
                                     End-to-end Service Management
                                     Workflow Engines




     What role can SFIA play in delivering an effective IT organisation?
2     SFIA and IT Effectiveness                                                                  ©2008 Deloitte MCS Limited. Private and confidential
Delivering an effective IT organisation requires
managing an additional set of talent challenges
               Typical talent challenges         Additional IT talent challenges

    Constant pressure to minimise           IT is a highly complex industry
    expenditure, cost and cash              IT people costs represent a large
    pressures dominate                      proportion of IT expenditure
    Managing a diverse workforce in         There is a recognised shortage of IT
    multiple locations and geographies      talent in many areas of IT
    Effective management of poor            Market factors are dynamic and can
    performance is not always               make some skills highly sort after and
    optimised                               expensive
    Retaining the best staff is a           Prohibitive restrictions on IT salaries
    constant challenge                      (typical in public sector)
    Sharing leading practice internally     The profession is still maturing
    Working collaboratively with other      meaning a lack of established:
    organisations, particularly suppliers    career paths
                                             qualifications
                                             regulatory powers
3   SFIA and IT Effectiveness                                 ©2008 Deloitte MCS Limited. Private and confidential
Delivering an effective IT organisation requires
managing an additional set of talent challenges
               Typical talent challenges         Additional IT talent challenges

    Constant pressure to minimise         IT is a highly complex industry
    expenditure, cost and cash            IT people costs represent a large
    pressures dominate                    proportion of IT expenditure
    Managing a diverse workforce in       There is a recognised shortage of IT
    multiple locations and geographies    talent in many areas of IT
                       Canofyou afford to leave this to
    Effective management poor             Market factors are dynamic and can
                  chance…and are you doing skills highly sort after and
    performance is not always             make some enough?
    optimised                             expensive
    Retaining the best staff is a         Prohibitive restrictions on IT salaries
    constant challenge                    (typical in public sector)
    Sharing leading practice internally   The profession is still maturing
    Working collaboratively with other    meaning a lack of established:
    organisations, particularly suppliers   career paths
                                             qualifications
                                             regulatory powers
4   SFIA and IT Effectiveness                                 ©2008 Deloitte MCS Limited. Private and confidential
IT organisations must ensure they get the right mix of
ingredients to acquire, manage and develop talent
                                                    IT Talent Ecosystem

                                 Retain
                                                                              How are you going to develop the people who
                                                                   Develop    already work for you and will you need to draw
                                 Talent                             Talent
                                                                              on external training or recruit new people?
              Develop        INTERNAL     Manage




                                                       INTERNAL
               Talent                     Talent
                                                                   Retain
                                                                              How do you make sure once you’ve developed
                             Talent                                Talent     your people, that you retain them?

                                          Recruit
               Train &
               Certify
                             EXTERNAL      Perm                               How do you manage your people to ensure
                                           staff                   Manage
                             Recruit
                                                                              you address poor performance and reward
                                                                   Talent
                             Contract                                         success?
                              staff

                                                                              How do you make best use of training and
     The IT Talent environment is like an                          Train &    certification schemes to develop, manage
                                                                   Certify    and retain your talent?
    ecosystem and needs the right mixture               EXTERNAL
    of ingredients to stay healthy – if one is
    missing, the ecosystem can suffer                                         To what extent can you afford to rely on
                                                                   Recruit
                                                                   Contract   contractors to meet your needs? Is this
    The ecosystem interacts with the                                staff     affordable, and will it increase your flexibility?
    external market and this needs to be
    controlled. Unlike a profession such as
    accountancy, you can’t rely as easily on                       Recruit    What will be your approach to recruiting
                                                                    Perm      permanent staff, how will you attract them, and
    the market to provide the talent you                            staff
                                                                              what career development schemes will you offer?
    require

5    SFIA and IT Effectiveness                                                                  ©2008 Deloitte MCS Limited. Private and confidential
A strategic approach to talent can help make your IT
organisation more effective and efficient

           The challenge                              Your approach should look more like this

                    Retain                        Performance Management
                    Talent




                                                                                                           De
                                                                                           e
                                                  Retention & Recruitment




                                                                                        fin
    Develop




                                                                                                             ve
                   INTERNAL     Manage




                                                                                      De
     Talent                     Talent




                                                                                                               lo
                                                                                               IT Talent




                                                                                                                 p
                                                  Continuity & Succession
                   Talent                                                                      Strategy
                                Recruit           Resourcing & Scheduling
     Train &       EXTERNAL      Perm
     Certify
                                 staff
                                                                                               Maintain
                   Recruit                        Career Development
                   Contract
                    staff


                                                   Strategic Levers                      IT Talent Strategy
      IT Talent Ecosystem

    An IT Talent Strategy can help manage IT talent challenges, allowing you to control approaches to
    one or more Strategic Levers such as Performance Management.
    If you want to become an employer of choice for example, you would need to consider a balance of
    levers, including retention, recruitment and career development.
    Additional benefits could be derived from thinking about resourcing to ensure employees experience
    a range of projects/roles
6   SFIA and IT Effectiveness                                               ©2008 Deloitte MCS Limited. Private and confidential
SFIA can play a key linking role in turning an IT
organisation design into practice
         IT Target Operating Model                             Organisation Designs/Operating Models – what will the organisation look like?

                                                                 Organisation Designs translate high level Operating Models into
                                                               reality, detailing roles, reporting lines and hierarchies
                                                                 Job Descriptions then describe the activities and responsibilities of
                                                               each role, but rarely the skills and capabilities required for delivery

                                                               Competency Model – what skills and capabilities will I need?

                                                                A Competency Model defines the skills and capabilities needed to
                                             IES

                         IT                                    deliver the requirements of the Operating Model
                                            LIT



                     Competency
                                                                 Competency Models should be based on recognised skills and
                                           B




                       Model
                                        PA




                                                               capability frameworks to provide both a common language between
                                      CA




                                                               organisations and to enable baselining and external comparisons
                     SKILLS


                                                               Talent Management Strategy – how to acquire, develop and manage your talent
Performance Management
                                                                 Both the Organisation Design and Competency Model are a
                                                    De
                                        e




                                                               statement of what you would like to achieve but they cannot be
                                    f in




                                                        ve




Retention & Recruitment
                                  De




                                                               acquired, developed or managed without an ongoing process
                                                           l
                                                          op




Continuity & Succession                     IT Talent
                                            Strategy             The Talent Strategy defines the approach an organisation should
Resourcing & Scheduling
                                                               take to one or more related talent issues such as performance
                                                               management, retention and recruitment – it is underpinned by the
Career Development                          Maintain           Competency Model
                                                                 The Talent Strategy has to be continuously managed and updated
    Key strategic                       Strategy lifecycle     to enable the required skills and capabilities to be achieved
    talent levers

7     SFIA and IT Effectiveness                                                                         ©2008 Deloitte MCS Limited. Private and confidential
Lessons Learnt: What are the critical success factors
for using SFIA to raise the bar in your organisation?

                                                  Things you must do
                                 Use SFIA to help baseline your existing skills and
                                capabilities, ensuring you robustly challenge them
                                  Consider using external organisations to help you
                                provide an independent audit
                                 Set ambitious targets for developing skills and
                                capabilities
                                 Link SFIA levels to your own grading structure

                                                Things to watch our for

                                 Don’t just use SFIA as way of representing your
                                existing organisation – use it to make it more effective
                                 Don’t allow IT and HR to work in isolation
                                 Don’t allow people to select too broad a skill base
                                 Don’t confuse knowledge with skills


8   SFIA and IT Effectiveness                                   ©2008 Deloitte MCS Limited. Private and confidential
Lessons Learnt: How can you use SFIA to help
create a more flexible organisation?




9   SFIA and IT Effectiveness      ©2008 Deloitte MCS Limited. Private and confidential
Lessons Learnt: How can you use SFIA to help
create a more flexible organisation?




10   SFIA and IT Effectiveness     ©2008 Deloitte MCS Limited. Private and confidential
Final Word: Highly effective but could be dangerous
in the wrong hands – handle with care!

                                  SFIA has the ability to play a key role in driving IT
                                 effectiveness
                                  Like PRINCE2 and ITIL if you use it in the wrong way
                                 you can cause more harm than good
                                  Particularly in the present climate, efficiency,
                                 effectiveness and quality are now more important than
                                 they have ever been
                                  Recognise that SFIA can play a key linking role in
                                 delivering the type of IT capability you want to deliver
                                  SFIA cannot do everything: so also recognise that you
                                 also need an operating model, HR processes and a
                                 talent strategy to get your IT organisation fit for the
                                 additional challenges which IT has to address


11   SFIA and IT Effectiveness                                        ©2008 Deloitte MCS Limited. Private and confidential
Deloitte
                              Stonecutter Court
 Tom Fuller                   Stonecutter Street
 Consulting                   London EC4A 4TR
                              United Kingdom
                              www.deloitte.co.uk


Mobile: +44 (0)7818 011423
thomasfuller@deloitte.co.uk   A member firm of
                              Deloitte Touche Tohmatsu




                                                         Member of
                                                         Deloitte Touche Tohmatsu

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Making IT Talent Work SFIA

  • 1. 2008 CONFERENCE Making IT Talent Work. Using SFIA to create an effective IT organisation Tom Fuller 04 December 2008
  • 2. An effective IT organisation focuses on people, processes and control as well as technology An IT Effectiveness Framework… …and its outcomes Client Architecture Programme Applications Service Vendor (Business) & Planning Delivery Development Management Management Management Efficiency People: Skills and capabilities Behavioural Change Reduce Consolidation Reduce Succession Planning Reaction and Costs Times Standardisation Process: Operating Models & Enterprise Architecture Effectiveness Service Delivery e.g. ITIL/ISO20000 Project Delivery e.g. SEI CMMI End to End Business Consistent Service Relevance Nomenclature Management Controls: Objectives and measures e.g. COBIT, BS7799 KPIs and Management Information Finance e.g. budgeting, recharging Quality Maximise Ensure Increase On-Time/ Secure Technology: Automated Testing Reliability On-Budget Delivery Operations End-to-end Service Management Workflow Engines What role can SFIA play in delivering an effective IT organisation? 2 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 3. Delivering an effective IT organisation requires managing an additional set of talent challenges Typical talent challenges Additional IT talent challenges Constant pressure to minimise IT is a highly complex industry expenditure, cost and cash IT people costs represent a large pressures dominate proportion of IT expenditure Managing a diverse workforce in There is a recognised shortage of IT multiple locations and geographies talent in many areas of IT Effective management of poor Market factors are dynamic and can performance is not always make some skills highly sort after and optimised expensive Retaining the best staff is a Prohibitive restrictions on IT salaries constant challenge (typical in public sector) Sharing leading practice internally The profession is still maturing Working collaboratively with other meaning a lack of established: organisations, particularly suppliers career paths qualifications regulatory powers 3 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 4. Delivering an effective IT organisation requires managing an additional set of talent challenges Typical talent challenges Additional IT talent challenges Constant pressure to minimise IT is a highly complex industry expenditure, cost and cash IT people costs represent a large pressures dominate proportion of IT expenditure Managing a diverse workforce in There is a recognised shortage of IT multiple locations and geographies talent in many areas of IT Canofyou afford to leave this to Effective management poor Market factors are dynamic and can chance…and are you doing skills highly sort after and performance is not always make some enough? optimised expensive Retaining the best staff is a Prohibitive restrictions on IT salaries constant challenge (typical in public sector) Sharing leading practice internally The profession is still maturing Working collaboratively with other meaning a lack of established: organisations, particularly suppliers career paths qualifications regulatory powers 4 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 5. IT organisations must ensure they get the right mix of ingredients to acquire, manage and develop talent IT Talent Ecosystem Retain How are you going to develop the people who Develop already work for you and will you need to draw Talent Talent on external training or recruit new people? Develop INTERNAL Manage INTERNAL Talent Talent Retain How do you make sure once you’ve developed Talent Talent your people, that you retain them? Recruit Train & Certify EXTERNAL Perm How do you manage your people to ensure staff Manage Recruit you address poor performance and reward Talent Contract success? staff How do you make best use of training and The IT Talent environment is like an Train & certification schemes to develop, manage Certify and retain your talent? ecosystem and needs the right mixture EXTERNAL of ingredients to stay healthy – if one is missing, the ecosystem can suffer To what extent can you afford to rely on Recruit Contract contractors to meet your needs? Is this The ecosystem interacts with the staff affordable, and will it increase your flexibility? external market and this needs to be controlled. Unlike a profession such as accountancy, you can’t rely as easily on Recruit What will be your approach to recruiting Perm permanent staff, how will you attract them, and the market to provide the talent you staff what career development schemes will you offer? require 5 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 6. A strategic approach to talent can help make your IT organisation more effective and efficient The challenge Your approach should look more like this Retain Performance Management Talent De e Retention & Recruitment fin Develop ve INTERNAL Manage De Talent Talent lo IT Talent p Continuity & Succession Talent Strategy Recruit Resourcing & Scheduling Train & EXTERNAL Perm Certify staff Maintain Recruit Career Development Contract staff Strategic Levers IT Talent Strategy IT Talent Ecosystem An IT Talent Strategy can help manage IT talent challenges, allowing you to control approaches to one or more Strategic Levers such as Performance Management. If you want to become an employer of choice for example, you would need to consider a balance of levers, including retention, recruitment and career development. Additional benefits could be derived from thinking about resourcing to ensure employees experience a range of projects/roles 6 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 7. SFIA can play a key linking role in turning an IT organisation design into practice IT Target Operating Model Organisation Designs/Operating Models – what will the organisation look like? Organisation Designs translate high level Operating Models into reality, detailing roles, reporting lines and hierarchies Job Descriptions then describe the activities and responsibilities of each role, but rarely the skills and capabilities required for delivery Competency Model – what skills and capabilities will I need? A Competency Model defines the skills and capabilities needed to IES IT deliver the requirements of the Operating Model LIT Competency Competency Models should be based on recognised skills and B Model PA capability frameworks to provide both a common language between CA organisations and to enable baselining and external comparisons SKILLS Talent Management Strategy – how to acquire, develop and manage your talent Performance Management Both the Organisation Design and Competency Model are a De e statement of what you would like to achieve but they cannot be f in ve Retention & Recruitment De acquired, developed or managed without an ongoing process l op Continuity & Succession IT Talent Strategy The Talent Strategy defines the approach an organisation should Resourcing & Scheduling take to one or more related talent issues such as performance management, retention and recruitment – it is underpinned by the Career Development Maintain Competency Model The Talent Strategy has to be continuously managed and updated Key strategic Strategy lifecycle to enable the required skills and capabilities to be achieved talent levers 7 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 8. Lessons Learnt: What are the critical success factors for using SFIA to raise the bar in your organisation? Things you must do Use SFIA to help baseline your existing skills and capabilities, ensuring you robustly challenge them Consider using external organisations to help you provide an independent audit Set ambitious targets for developing skills and capabilities Link SFIA levels to your own grading structure Things to watch our for Don’t just use SFIA as way of representing your existing organisation – use it to make it more effective Don’t allow IT and HR to work in isolation Don’t allow people to select too broad a skill base Don’t confuse knowledge with skills 8 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 9. Lessons Learnt: How can you use SFIA to help create a more flexible organisation? 9 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 10. Lessons Learnt: How can you use SFIA to help create a more flexible organisation? 10 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 11. Final Word: Highly effective but could be dangerous in the wrong hands – handle with care! SFIA has the ability to play a key role in driving IT effectiveness Like PRINCE2 and ITIL if you use it in the wrong way you can cause more harm than good Particularly in the present climate, efficiency, effectiveness and quality are now more important than they have ever been Recognise that SFIA can play a key linking role in delivering the type of IT capability you want to deliver SFIA cannot do everything: so also recognise that you also need an operating model, HR processes and a talent strategy to get your IT organisation fit for the additional challenges which IT has to address 11 SFIA and IT Effectiveness ©2008 Deloitte MCS Limited. Private and confidential
  • 12. Deloitte Stonecutter Court Tom Fuller Stonecutter Street Consulting London EC4A 4TR United Kingdom www.deloitte.co.uk Mobile: +44 (0)7818 011423 thomasfuller@deloitte.co.uk A member firm of Deloitte Touche Tohmatsu Member of Deloitte Touche Tohmatsu