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 SEI Webinar August 2008 Buttles and Wemyss 2 Workforce Issues of the 21st Century SEI Webinar August 2008 Buttles and Wemyss 3 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. SEI Webinar August 2008 Buttles and Wemyss 4 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 SEI Webinar August 2008 Buttles and Wemyss 5 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 SEI Webinar August 2008 Buttles and Wemyss 6 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 SEI Webinar August 2008 Buttles and Wemyss Source: World Population Prospects 2006 Update, United Nations 7 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 SEI Webinar August 2008 Buttles and Wemyss 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 SEI Webinar August 2008 Buttles and Wemyss 9 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 SEI Webinar August 2008 Buttles and Wemyss 10 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 SEI Webinar August 2008 Buttles and Wemyss 11 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) SEI Webinar August 2008 Buttles and Wemyss 12 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 SEI Webinar August 2008 Buttles and Wemyss 13 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 SEI Webinar August 2008 Buttles and Wemyss 14 Workforce Issues Impacting Performance and Retention SEI Webinar August 2008 Buttles and Wemyss 15 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 SEI Webinar August 2008 Buttles and Wemyss 16 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 SEI Webinar August 2008 Buttles and Wemyss 17 Misaligned Workforce Practices SEI Webinar August 2008 Buttles and Wemyss 18 The People Capability Maturity Model: Overview SEI Webinar August 2008 Buttles and Wemyss 19 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) SEI Webinar August 2008 Buttles and Wemyss 20 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 SEI Webinar August 2008 Buttles and Wemyss 21 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 SEI Webinar August 2008 Buttles and Wemyss 22 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. SEI Webinar August 2008 Buttles and Wemyss 23 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 SEI Webinar August 2008 Buttles and Wemyss 24 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 SEI Webinar August 2008 Buttles and Wemyss 25 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 SEI Webinar August 2008 Buttles and Wemyss 26 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 SEI Webinar August 2008 Buttles and Wemyss 27 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 SEI Webinar August 2008 Buttles and Wemyss 28 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 SEI Webinar August 2008 Buttles and Wemyss 29 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 SEI Webinar August 2008 Buttles and Wemyss 30 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 SEI Webinar August 2008 Buttles and Wemyss 31 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 SEI Webinar August 2008 Buttles and Wemyss 32 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. SEI Webinar August 2008 Buttles and Wemyss 33 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 SEI Webinar August 2008 Buttles and Wemyss 34 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 SEI Webinar August 2008 Buttles and Wemyss 35 Bibliography Anderson, Frank J. 2007. NDIA STEM Initiative Strategy Session. 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. SEI Webinar August 2008 Buttles and Wemyss 36 SEI Webinar August 2008 Buttles and Wemyss 37