Talent management - The PCMM way

Talent
Management-The
PCMM way

2© 2015 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
Talent Management
Talent management is the science of using strategic human resource
planning to improve business value and to make it possible for companies
and organizations to reach their goals.
Everything done to recruit, retain, develop, reward and make people
perform forms a part of talent management as well as strategic workforce
planning. A talent-management strategy needs to link to business strategy
to make sense
Talent Management-The PCMM way

Core People Issues
Staffing and talent management
Compensation
Source: Future Insights, SHRM 09-700 (2009)
Multiple generations in the workplace
Performance Management
Work/life balance

Source: Towers Watson 2014 Global Workforce Study
Engagement Segments

Top Drivers for Sustainable Engagement

Attraction and Retention Drivers

Who’s Managing the Organization’s Assets?
“Our greatest asset is our People”
Yet, many organizations leave the management of their
greatest asset, to “managers”, who have limited experience,
skills, or information to be effective managers.
Managers impact
• perception of the organization
— manager represents the company
• retention
— people leave manager first, company second
• performance
• morale
• unit‘s bottom-line

The “Manager”: A People CMM Perspective
A manager
• accepts stewardship of a resource
• provides technical and administrative direction and
control to individual performing tasks
• develops and optimizes the conditions affecting
success
• plans, resources, and controls work within their
responsibility
Many “types” of managers
• senior manager, middle manager line manager, team leader, etc.

Biggest Challenges Facing HR Executives
In the coming 10 years
49%
43%
Retaining and rewarding the best people
Creating a corporate culture that attracts the
best people to our organization
Finding people with the increasingly specialized
skills we need
Developing the next generation of
corporate leaders
Breaking down cultural barriers that make it
difficult to create a truly global company
Remaining competitive in the talent marketplace
Creating smooth and efficient HR processes
that ensure a good employee experience
Creating an employee-centric,
service-oriented HR organization
Other (1%) and Don’t know (3%)
32%
Finding the right people in the right markets
where we do business around the world
39%
28%
23%
20%
16%
12%
4%

PCMM Maturity Framework
Humphrey (1989), Paulk et al. (1995),
Cutis et al. (1995)
Managed
practices
Tailored
practices
Measured
and aligned
practices
Continuously
improving
practices
People
management
Competence
management
Team
management
Capability
management
Level 1
Initial
Level 2
Managed
Level 3
Defined
Level 4
Predictable
Level 5
Optimizing

People CMM Architecture
1
Initial
2
Managed
Managers take
responsibility for
managing and
developing their people
Compensation
Training & Development
Performance Management
Staffing
Communication & Co-ordination
Work Environment
3
Defined
Organization develops a
framework of workforce
Competencies required
to accomplish its
business objectives
Participatory Culture
Workgroup Development
Competency-Based Practices
Career Development
Competency Development
Workforce Planning
Competency Analysis
4
Predictable
Capability is managed
quantitatively and the
organization exploits
its opportunities in its
competency framework
Mentoring
Organizational Capability Management
Quantitative Performance Management
Empowered workgroup
Competency-Based Assets
Competency Integration
5
Optimizing
Capability and
performance continually
improved
Continuous Workforce Innovation
Organizational Performance Alignment
Continuous Capability Improvement
Level Focus Key Process Areas

Threads in the People CMM
Levels Developing
Competency
Building
workgroups &
culture
Motivating &
managing
performance
Shaping the
workforce
5
Optimizing
Continuous Capability Improvement Organizational
Performance
Alignment
Continuous
workforce
Innovation
4
Predictable
Competency
based assets
Mentoring
Competency
Integration
Empowered
Workgroups
Quantitative
Performance
Management
Organizational
Capability
Management
3
Defined
Competency
Development
Competency
Analysis
Workgroup
Development
Participatory
Culture
Competency based
practices
Career
Development
Workforce
Planning
2
Managed
Training and
Development
Communication &
Coordination
Compensation
Performance
Management
Work environment
Staffing

SEI IDEALSM Model
Establish
improve-
ment infra-
structure
Learning
Establishing
Acting
Stimulus
for
change
Set
context
Build
sponsor-
ship
Character-
ize current
& desired
states
Develop
recommen-
dations
Set
priorities Develop
approach
Plan
actions
Create
solution
Pilot test
solution
Refine
solution
Implement
solution
Analyze
and
validate
Propose
future
actions
Diagnosing
Initiating
SM
IDEAL is a service mark of Carnegie Mellon University

A Famous Aviation Company…..
Employee Satisfaction Index increased by 15%
Customer satisfaction has remained high – current year
to date satisfaction index is 7.6 on a 10 point scale
Post Release Defects reduced by 50%
Rework Ratio reduced by 15%
Labor Effort Variation reduced by 35%
Schedule Variation reduced by 38%
Say It
Do It
Prove It
Improve It

A Renowned Pharma company…
Thorhauge (2000)
Improved communication at all levels :
interrelated goals at all levels
IT tool for documenting goals & formal feedback
High employee satisfaction:
Participation in Employee satisfaction survey significantly increased
Satisfaction index observed to have increased by 45%
Staffing process redesigned:
shorten time-to-offer
improved rate of acceptance

A Reputed IT Organization…
“How we the People CMM to Improve Workforce
Practices”
“After investigating several different ideas, we decided the People CMM was the most
appropriate for our objectives of developing a world-class workforce and organizational
capabilities for IT by strategically shaping our future workforce and influencing our
partners and industry. The People CMM assessment conducted in the third quarter of
every year provides IT with a strategic road map for implementing areas for
improvement.”
Benefits
Clearly defined jobs with skill requirements
Skill gaps filled with job-specific training and nurturing individual accountability
Improved employee job classification and matching
Long-range career planning capability
High Quality communication across
Increased employee satisfaction

A Recognized hospitality company…
Tangible Benefits
Improved customer
satisfaction
• Decrease in negative remarks (12% to 7.8%)
• Increase in positive remarks (66% to 74%)
• Increase in guest scores in all departments
Reduced operational
costs
• Reduced recruitment costs
• Attrition rate reduce from 4.5% to 1.5%
Improved objective
performance scores
• Appraisal scores improved over three quarters, with
greater consistency across departments
Established a
“knowledge bank”
• Establish a forum to share experiences and learn
from each other on a continuing basis
• Knowledge bank is updated on an event driven basis
and leanings are shared and put into practice
Tangible Benefit Example Results

A Recognized hospitality company…
Intangible Benefits
Employee morale • Fall in attrition rate
• Better feedback on training and orientation activities
Greater cross-level
interaction
• Increase in voluntary participation
• Constructive debates on important issues
Rise in participation • Increase volunteering to committees
• Increase delegation in decision-making processes
Organizational culture
positive and open
• Clarity on unit processes and policies
• Level of interaction during orientation sessions
Intangible Benefit Example Results

The Most Admired & Largest IT Consulting
Company...
Why People CMM?
• Company was experiencing rapid growth and needed to establish a
measurable, repeatable, and predictable employment experience for its people
and processes
• Linking business outcomes to people practices
• The need to increase employee engagement and attract talent
• The need to develop distinctive capabilities
• Reduce risks associated with rapid growth
• To establish a capability development framework
• Increase employee engagement

Implementation Approach
• Strong endorsement from the global leadership of its business operations,
including senior executives.
• Dedicated leadership and ownership of the implementation from a business
executive in each local delivery center.
• Small, effective, localized teams (including representatives from HR, SW
engineering process team, and technology experts) were able to implement locally
consistent set of global HR processes.
• Personalizing each delivery center implementations actions and goals to the local
audiences.
• Employees were engaged by positioning the People CMM as an improvement
mechanism rather than an accreditation program.
Company...

Outcomes & Achievements
Adoption of the People CMM has helped Company’s delivery centers attain
remarkable achievements in business and workforce objectives including:
• Increased employee moral, satisfaction, and engagement
• Better talent management
• Improved workforce capability to meet business growth
• Improved marketability
• Employee engagement improved by 9%-16% in 2 years earning the company the
“Top Ten Best Employers in multiple countries”
• Significant reduction in Attrition from the range of 30%-35% to 15%-16%
• 20%-25% jump in manpower resource utilization
• Time taken to make new joiners productive reduced by 15%-20%
• Employee satisfaction score improved by 35% with very high participation
Company...

© 2015 KPMG India Private Limited, an Indian limited liability company and a member
firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Thank You
Sankaran V
KPMG
Mail: vsankaran@kpmg.com

Talent management - The PCMM way

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