Workforce Issues of the 21st Century:

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Workforce Issues of the 21st Century:
The People CMM to the Rescue
Palma Buttles-Valdez
Member of the Technical Staff
Software Engineering Institute
Gian Wemyss
Senior Member of the Technical Staff
Software Engineering Institute
© 2006 Carnegie Mellon University
Agenda
1.
Workforce Issues of the 21st Century
2.
Workforce Issues Impacting Performance and Retention
3.
Overview of the People CMM
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Workforce Issues of the
21st Century
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Putting People Back Into the Equation
Today, organizations are largely dependent on high-technology to
develop, build, and maintain their products and services.
This has created a dependence on a workforce with specialized knowledge
and skills.
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People: Growing Contributors to Organization Success
Organizational Value: Tangible and Intangible
100%
90%
20%
?
Tangible Assets
Products and Services
80%
70%
Intangible Assets
62%
60%
50%
40%
80%
?
2002
Current/Future?
People and their
cumulative knowledge and
skills
30%
20%
38%
10%
0%
1982
Source: Kirchoff 2006
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Workforce Issues: Worldwide Trends
Shifting Demographics
United States, European Union, Japan…
Shortage of knowledgeable, skilled, and adaptable workforce
United States, European Union, Mexico, South Africa, China…
Work-life balance
United States, European Union, China
Retention
United States, European Union, China, India
Multiple generations in the workforce
United States, European Union, China
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Trends Affecting the Workforce
Shifting Demographics of the World’s Population I
120%
15-24
110%
24-59
100%
60 or older
90%
80%
20.0
70%
23.8
16.6
11.5
26.8
60%
20.6
20.2
11.0
31.1
27.6
34.5
46.9
40.8
7.5
50%
40%
43.0
48.2
44.2
44.2
37.6
13.1
12.0
19.3
2025
2050
30%
46.6
50.1
49
49.3
42.7
20%
10%
14.3
17.0
12.7
16.6
11.6
10.9
13.9
10.7
10.0
2005 2025
2050
0%
2005
USA
2005
2025
2050
India
2005
2025
China
2050
“One in every three
of Lockheed’s
employees is over
50, to sustain our
talent base, we’re
hiring 14,000 people
a year. In two years,
we’re going to need
29,000 new hires; in
three years, 44,000.
If this trend
continues, over the
next decade we will
need 142,000.” Robert
J. Stevens, Chairman,
President and CEO
Lockheed Martin, Wall
Street Journal April 19,
2006.
Europe
Source: World Population Prospects 2006 Update, United Nations
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Source: World Population Prospects 2006 Update, United Nations
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Trends Affecting the Workforce
Shifting Demographics of the World’s Population II
120%
15-24
110%
100%
24-59
90%
60 or older
80%
70%
26.4
35.8
15.1
13.4
44.0
8.0
50%
30.2
12.5
43.2
48.7
40.6
30%
50.1
48.0
46.4
44.0
25.6
9.2
24.0
60%
40%
17.6
45.0
45.2
44.8
41.6
36.5
20%
10%
11.0
9.0
8.2
0%
2005
2025
2050
Japan
18.7
16.2
2005
2025
12.6
2050
Central America
Source: World Population Prospects 2006 Update, United Nations
18.7
2005
15.6
2025
12.5
2050
South America
13.9
11.9
11.4
2005 2025
2050
Australia
New Zealand
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Source: World Population Prospects 2006 Update, United Nations
8
US Computer Sciences Degrees Awarded 1999 - 2005
10
2000
2001
20
30
40
50
60
70
80
90
56,316
100
Number of
Degrees Awarded
Associate and Bachelor
Men
66,290
Women
2002
76,051
92,118
2003
89,581
2004
“one job in every 19
created in the US
over the course of
the next decade will
be in technology.”
Business Week June 30, 2008
2005
78,205
Source: National Science Foundation Statistics May 2008
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Shift in Demographics: US Baby Boomers
In the US, between 2010 and 2030 over 78 million baby-boomers, many in
key positions, will be eligible for retirement. With the exit of a large segment
of the workforce, many organizations may be facing a loss of:
Senior Management
•
•
•
•
corporate knowledge (“know-how”, soft knowledge, etc.)
customer and product/services intimacy
technical knowledge and skills
mentor
Senior Technical Staff
•
•
•
•
technical knowledge and skills
product and/or service development knowledge
corporate knowledge (“know-how”, soft knowledge, etc.)
mentor
Senior Administrative Staff
•
•
corporate knowledge (“know-how”, soft knowledge, etc.)
mentor
and a shift or change in: Corporate Culture
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National, DoD, and Civilian AT&L Workforce
“DoD faces significant challenges related to mitigating the pending departure of its
highly experienced and seasoned talent – the critical challenge” Frank Anderson, Jr.,
Director, AT&L Human Capital Initiatives, President, Defense Acquisition University 2007
Generation
Traditionalists
National
DoD
(2005)
(2006)
Civilian AT&L
Workforce (2006)
Workforce
(Millions)
% Workforce
Workforce
% Workforce
Workforce
% Workforce
11.5
7.5%
45,625
6.7%
8,322
7.4%
61.5
42.0%
438,971
64.5%
77,779
68.7%
43.5
29.5%
132,948
19.5%
17,581
15.5%
31.5
21.0%
62,676
9.2%
9,394
8.3%
51.0
0%
153
0%
0
0%
(Born before 1946)
Baby Boomers
(1946 - 1964)
Generation X
(1965-1976)
Generation Y
(1977 -1989)
Millennium
(1990 - present)
Source: Anderson 2007, NDIA STEM Initiative Strategy Session
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Focus on the Software Developer: Age Distribution
U.S. Government
65 to 74
65 to 74
55 to 64
55 to 64
Age in Years
Age in Years
U.S. Commercial
45 to 54
35 to 44
25 to 34
45 to 54
35 to 44
25 to 34
<25
<25
0% 5% 10% 15% 20% 25% 30% 35%
Programmer
0% 5% 10% 15% 20% 25% 30% 35%
Software Engineer
Slide adapted from CSIS 2006, Source: Current Population Survey (August 2006)
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Workforce Issues: What Does This Mean to You?
Shortage of workers can place undue pressure on existing workforce,
longer hours, etc.,
•
reduces productivity and increases defects
• reduces morale and organizational loyalty
Knowledge and skills gap
•
college graduates
• need to establish or invest in training and development activities
• need to invest in knowledge and skill profiles and assess current capability
(competencies)
Place a strain on Human Resources,
hiring managers, and/or recruiters
•
competition for experienced/skilled managers
• intense competition for skilled and knowledgeable workforce
• Federal Sector: Clearance, Clearance, Clearance
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Managing Multiple Generations: Cultural Differences
Traditionalist
1928-1945
Hard worker
Respects authority
Work is an obligation
Communicates
formally & in person
Organizational loyalty
Work & family don’t
mix
Source: Hammill 2005
Baby-Boomer
1946 - 1964
Generation X
1965 - 1980
Generation Y
1980 - 2000
Workaholic
Questions authority
Works efficiently
Competitive
No news is good news
Work to live, little
balance between
work/family
Technically savvy
Prefer informality
Learns quickly
Communicates directly
& immediately
Wants structure &
direction
Seek work/life balance
Prefer informality
Learn quickly
Embrace diversity
Requires supervision
Indirect communication:
email & texting
Seek “demand”
work/life balance
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Workforce Issues Impacting
Performance and Retention
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Workforce Issues: Performance & Retention I
Managers
•
limited skills/abilities to manage and develop people
Staffing
•
•
hired for a job without the required knowledge and skills
job hired is different than job assigned
Training and Development
•
•
•
training is not keeping up with changes in technology
training to reduce knowledge and skills gaps is not provided, timely, or relevant
limited/no opportunities to develop and use new knowledge and skills (growth)
Performance Management
•
•
•
no clear performance objectives, no linkage to committed work
performance problems are not managed
inconsistent rewarding of performance
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Workforce Issues: Performance & Retention II
Communication
•
limited/no communication, top down, bottom up, and laterally
•
inconsistent and vague messages (verbal and behavioral)
Compensation
•
not linked to performance objectives
• rewards for inappropriate behaviors
• inequity issues
Work Environment
•
physical space and resources to perform committed work
are not provided or not provided in a timely manner
Organizational Culture
•
gap between Ideal and Real Culture
• culture does not support business objectives or mission goals
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Misaligned Workforce Practices
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The People Capability
Maturity Model: Overview
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People CMM: Introduction
The People CMM is a roadmap for implementing workforce practices
that continuously improve the capability of an organization’s
workforce. It enables organizations to:
to attract, develop, organize, motivate, and retain the
workforce required to build their products and deliver
the services
align workforce development with strategic business
or mission goals
characterize maturity of workforce practices
set priorities for improving workforce capability
become an employer of choice
Curtis, Hefley, & Miller (2001)
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People CMM Model Components
Process
Area
Purpose
Statement
Implementation
Goals
Institutionalization
Goal
Institutionalizatio
n
Practices
Implementatio
n
Practices
Subpractices
Key:
Required
Supplementary
Information
Expected
Purpose
Descriptio
n
Informativ
e
Subpractices
Supplementary
Information
Adapted from CMMI v1.2 Figure 2.1
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People CMM: Process Areas by Maturity Level
Level
Level
Focus
Focus
5
Optimizing
Continuous
Improvement
4
Predictable
Predicting
Capability &
Performance
3
Defined
Organizational
Competency
framework
2
Managed
Basic
Management
Practices
Process Area
Continuous Workforce Innovation
Organizational Performance Alignment
Continuous Capability Improvement
Mentoring
Organizational Capability Management
Quantitative Performance Management
Competency-Based Assets
Empowered Workgroups
Competency Integration
Participatory Culture
Workgroup Development
Competency-Based Practices
Career Development
Competency Development
Workforce Planning
Competency Analysis
Compensation
Training and Development
Performance Management
Work Environment
Communication and Coordination
Staffing
Competency
Productivity
Risk
Turnover
1
Initial
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People CMM Practices: “What, not How”
Practices describe “what” activities and actions should be performed. It
is up to the organization to decide “how” the practices are implemented
to satisfy goals.
“How” Factors
Organizational Culture
Industry
Country
?????
Two Types of Practices: “The What”
Implementation
Describe the activities or procedures that should be
performed by individuals, in workgroups or units, or by
the organization.
Institutionalization
Practices that help to institutionalize the
implementation practices in the organization’s culture
so they are effective, repeatable, and lasting.
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People CMM: Institutionalization Practices
Practice performance will decay if not institutionalized
If no commitment
Failed efforts
If no ability
Ineffective performance
If no measurement
No improvement
If no verification
Declining compliance
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People Capability Maturity Model: Primary Objective
The primary objective of:
a CMM is to improve the capability of an organization.
the CMMI (DEV, ACQ, SVS), is to improve the capability of an
organizations processes.
the People CMM is to improve the capability of an organization’s workforce.
The People CMM, defines capability as the level of knowledge, skills, and
process abilities available within each workforce competency of the
organization to build its products or deliver its services.
People
CMM
Workforce
capability
CMMI-DEV,
ACQ, SVS, TSP
enables
Process
capability
predicts
Performance
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Defining Workforce Competency
Knowledge represents the comprehension acquired by
experience and or study.
Skills represents the proficiency or ability in techniques
or tools that an individual must be able to demonstrate.
Process abilities is the capacity to perform individual
skills in the sequencing or method used in the
organization.
Knowledge
+
Skills
+
Process
abilities
=
Workforce
Competency
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Workforce Competency Example: Software Engineering
Software Engineer IV
Application domain
Knowledge: Engineer
Software
III
Procedural design
Application
Cobol & assembler
domain
Procedural
Numerical
design
analysis
Cobol & assembler
domain
Knowledge:
Requirements
analysis
Skills: Application
Numerical
analysis
Procedural
design
System
design
Cobol
& domain
assembler
Requirements
Project
management
analysis
Skills: Application
Knowledge:
Numerical
analysis
System
debugging
design
Procedural design
management
Cobol &Project
assembler
analysis
Skills:Process Requirements
Integrated
team design
debugging
Numerical analysis
System
design
Fagan inspections
Abilities
Project
management
Integrated
Test
procedures
team design
analysis
Skills: ProcessRequirements
debugging
Change
inspections
control
AbilitiesSystem Fagan
design
Test
procedures
Project
management
Integrated
design
Process
Changeteam
control
debugging
Fagan
inspections
Abilities
Test procedures
Integrated
team design
Process
Change
control
Fagan
inspections
Knowledge:
Software Engineer II
Software Engineer I
Current Resource Profile (initial inventory)
Workforce
Competency
Software Engineer
User Training
Staffing by Capability Level
I
II
III
IV
17
2
25
8
12
4
5
1
Current Workforce Needs (one year cycle)
Workforce
Competency
Software Engineer
User Training
Current Staffing Level Needed
I
23
4
II
30
9
III
15
6
IV
7
2
Abilities
Test procedures
Change control
Competency Family
Software Engineering
Strategic Workforce Needs (two to five year)
Workforce
Competency
Software Engineer
User Training
2010 Staffing Level Needed
I
31
II
35
III
18
IV
9
4
10
8
3
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From Counting Heads to Understanding Capability
Software Engineer III
FROM
Knowledge: Application domain
Software
Engineer
II
Procedural design
Cobol & assembler
Application
domain
Knowledge: Engineer
Numerical
analysis
Software
I
Procedural design
Cobol
& domain
assembleranalysis
Requirements
Skills: Application
Knowledge:
Numerical
analysis
System
design
Procedural
design
Project
management
Cobol & assembler
Requirements
analysis
Skills:
debugging
Numerical
analysis
System design
Project
management
Integrated
team design
analysis
Skills: ProcessRequirements
debugging
AbilitiesSystem Fagan
designinspections
Test
procedures
Project
management
Integrated
design
Process
Changeteam
control
debugging
Fagan
inspections
Abilities
Test procedures
Integrated
team design
Process
Change
control
Fagan
inspections
Abilities
10 Software Engineers
Test procedures
Change control
Software Engineering
5 System Engineers
4 Business Analysts
Resource Profile
Workforce
Competency
Software Engineer
User Training
Staffing by Capability Level
I
II
III
IV
17
2
25
8
12
4
5
1
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People CMM: Focus for Changing Practices
Organization
develops
workforce
competencies
Organization
Empowered
workgroups
& measured
capability
Managers
perform
repeatable
practices
Unit and Workgroup
Ad hoc,
Inconsistent
workforce
practices
Maturity Levels
1
Improvement &
integration of
personal work
processes
Individual
2
3
4
5
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Multiple Roles in the People CMM
While change might be initiated by a single source, it must be accepted,
internalized, and institutionalized by all affected parties to become
effective and lasting. Practices in the People CMM address this issue.
Organization
Change is
institutionalized
Executive
Management
Managers
Process
Owners
Workforce
Executive
Management
Managers
Process
Owners
Workforce
Isolated
Change
Managers
Process
Owners
Workforce
Misguided
Change
Process
Owners
Workforce
Temporary/
No Change
Workforce
Infective
Change
Organization
Organization
Executive
Management
Organization
Executive
Management
Managers
Organization
Executive
Management
Managers
Temporary/
No Change
Process
Owners
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Organizational Culture: People CMM Transformations
Level 1
Chaotic and an impediment to
lasting change
Level 2
Change occurs due to management and
workforce buy-in of committed work
Level 3
Common understanding of culture; reflects
professionalism and information sharing
Level 4
Supports results oriented performance
and quality
Level 5
adaptable to changes in business
conditions
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Multiple Models/Technologies Architectures
Product line
architectures
People CMM
Adapted from John Vu: SEPG 2006
Integration and Interaction
Six Sigma
Measurements
CMMI
Organization & Management
Business Goals and Objectives
Software and Systems
Knowledge and Skills
PSP/TSP
Infrastructure
Lean Enterprise: Simplify and Standardize
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Improvement Efforts: Missing Elements for Change
Vision
Resources
Capable
Workforce
Capable
Processes
Organizational
Culture
Incentives
Action
Plan
Change
Resources
Capable
Workforce
Capable
Processes
Organizational
Culture
Incentives
Action
Plan
Confusion
Capable
Workforce
Capable
Processes
Organizational
Culture
Incentives
Action
Plan
Anxiety &
frustration
Capable
Processes
Organizational
Culture
Incentives
Action
Plan
Slow or little
progress
Organizational
Culture
Incentives
Action
Plan
Reinventing
the wheel
Incentives
Action
Plan
Barriers to
change
Action
Plan
Sporadic
change
Vision
Vision
Resources
Vision
Resources
Capable
Workforce
Vision
Resources
Capable
Workforce
Capable
Processes
Vision
Resources
Capable
Workforce
Capable
Processes
Organizational
Culture
Vision
Resources
Capable
Workforce
Capable
Processes
Organizational
Culture
Incentives
False starts
Adapted from: Delorise Ambrose, 1987. Personal communication.
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People CMM Courses
Introduction to People CMM
August 6 – 8, 2008, Washington DC
October 22 – 24, 2008 – Vancouver, Washington
(week prior to CMMI workshop)
November 2008 (date to be determined) Argentina
December 8 – 10, 2008 - Pittsburgh, PA
Intermediate Concepts of People CMM
September 8 - 12, 2008 – Frankfurt, Germany
SCAMPI with People CMM Lead Appraiser Training
November 3 – 7, 2008 – Pittsburgh, PA
SCAMPI with People CMM Upgrade Training
Week of October 27, 2008 – Vancouver, Washington
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Contacting the SEI
Presenters
Contact Information
Palma Buttles-Valdez
Member of the Technical Staff
Software Engineering Institute
Gian Wemyss
Senior Member of the Technical Staff
Software Engineering Institute
+1 512-751-3676
pjb@sei.cmu.edu
+ 1 412 268-8138
rgw@sei.cmu.edu
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Bibliography
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Curtis, Bill, William E. Hefley, and Sally A. Miller. 2001. The People Capability Maturity Model: Guidelines
for Improving the Workforce. SEI Series, Management of Human Resources. Addison Wesley.
Department of Defense, Acquisition, Technology and Logistics, AT&L Human Capital Strategic Plan, v1.0,
September 2006.
Dychtwald, Ken, Tamara J. Erickson, Robert Morison. 2006. Workforce Crisis: How to Beat the Coming
Shortage of Skills and Talent. Harvard Business School Press.
Employment Policy Foundation. 2002 , The Seventh-Annual Workplace Report, Challenges Facing the
American Workplace, Summary of Findings.
Hammill, Greg. 2005. Mixing and Managing Four Generations of Employees. FDU Magazine online,
Winter/Spring 2005. http://www.fdu.edu/newspubs/magazine/05ws/generations.htm
Kirchoff, John 2006. Why Performance Management Improves Human Capital ROI. SHRM Research.
Kleyman, Paul. 2006. Boomers to Redefine Workplace. In: Aging Today: The bimonthly newspaper of the
American Society on again, Vol. 25.No.26
SHRM 2003. Older Worker Survey. www.shrm.com
Toossi, Mitra. 2005. Monthly Labor Review, November 2005. Labor Force Projections to 2014: Retiring
Boomers. US Department of Labor Bureau of Labor Statistics 2005.
Humphrey, Watts S. 1989. Managing the Software Process. Reading, MA. Addison-Wesley.
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