Mahesh Kuruba
Role
Competency
Matrix
A Step-By-Step Guide to an Objective
Competency Management System
Role Competency Matrix
Mahesh Kuruba
Role Competency Matrix
A Step-By-Step Guide to an Objective
Competency Management System
123
Mahesh Kuruba
Pune, Maharashtra, India
ISBN 978-981-13-7971-0
ISBN 978-981-13-7972-7
https://doi.org/10.1007/978-981-13-7972-7
(eBook)
© Springer Nature Singapore Pte Ltd. 2019
This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part
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The use of general descriptive names, registered names, trademarks, service marks, etc. in this
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Singapore
To
my parents
Honnurappa Kuruba and
Nagarathnamma Kuruba
my wife
Jyotsna Kuruba
my daughter
Aarushi Kuruba
Foreword
People cost is the major cost component for an
Information Technology (IT) organization, constituting
as much as 50% of its revenues. While employees are
regarded as valued assets, their competency management has challenged IT companies for decades. IT
businesses are under a constant pressure to respond
quickly to the constantly changing technology trends,
often feeling compelled to hire trained workforce at a
higher cost. The cyclic behavior of employees joining
and separating from an organization has become a
phenomenon in IT industry. The result is that many
organizations experience double-digit attrition, and the
people working in them may not necessarily be optimally leveraged for the roles in
which they operate, thereby impacting product quality and productivity.
IT companies need a framework with which to manage their workforce competencies holistically and effectively, leveraging their workforce capabilities by
considering employee capabilities and aspirations, and business needs. Any
workforce competency management system demands an objective and transparent
approach for management and employees alike, as well as being aligned to business
goals.
The Role Competency Matrix (RCM), which is presented in this book, is a
framework that helps in objective assessment of competency. RCM provides the
metrics to quantify competency index and competency gap at both employee and
organizational level. The RCM framework enables organizations to develop an
objective data-driven competency measurement system and help them to
vii
viii
Foreword
proactively address competency gaps. RCM guides management in making business decisions at strategic, tactical and operational level based on the workforce
competency. At the employees’ level, it helps them in competency development
and career progression. At management and decision-making levels, the framework
will be helpful in people management strategies and succession planning.
I am sure that the book will benefit heads of business units who value their
workforce and want to have the “right people in right roles”. The author deserves to
be congratulated for proposing such a framework. I am sure this book will be found
to be of great value in IT industry.
May 2019
Ajit Kumar Verma
Professor, Faculty of Engineering and Natural Sciences
Western Norway University of Applied Sciences
Haugesund Norway
Professor (Retd), Department of Electrical
Engineering IIT Bombay
Mumbai India
Preface
People are central to, and at the front of, the IT business. IT organizations have a
well-earned reputation for innovative and transformative practices in the marketplace. But the nature of their work also places a huge demand on the capabilities
of their workforce. Businesses need to sense the shifts in business scenario and
technology trends, and quickly respond to their markets’ demand for better products
and services. Companies that do not realize this are doomed to oblivion. Although
technology is the driving force of the changes in the industry, it is the ability of its
workforce to adapt and respond to the changes that will decide whether a business
will grow or fade into nothingness. Most competency management practices, even
the ones that are claimed to be ‘state-of-art’ are largely qualitative in
approach. They have a significant subjective component and are poorly aligned
to business strategy. The result is that, often, doubts persist about a competency
management system’s objectivity and fairness, as well as its ability to deliver on its
intent and purpose. With an increasing demand for IT professionals with the right
skills, and the high cost of making a wrong staffing decision, it is vital for organizations to identify people who are optimally suited for their roles.
Therefore, there is a need for a competency management system (CMS) that is
transparent to all stakeholders, objective and scalable across the organization, and
uses measurable indicators for evaluating competency. Such a system has a better
chances of being effective and accepted in the organization.
This book is about the Role Competency Matrix (RCM), a framework for
effective workforce competency management. RCM enables a company’s workforce to be responsive and agile so that the competencies are always current and
aligned to the business goals of the company. The RCM framework minimizes
subjectivity and provides a measurement-based approach that will help people
managers in IT organizations to objectively assess employee competency, identify
and measure the competency gaps that must be bridged through competency
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Preface
development for achieving organizational goals. In addition, RCM also aids
employees in choosing appropriate career paths based on their competencies and
organizational role requirements. Importantly, the framework also assists business
leaders in succession planning.
A Note for the Reader
This book presents the Role Competency Matrix, a framework for managing
workforce competency in the IT industry. The framework is a valuable guide for
organizations in developing their workforce competencies—and using them—in a
systematic manner to enhance organizational performance, as well as realize
employee potential and aspirations.
Having worked in several countries, the author found that workforce management practices vary from country to country. These practices are influenced by the
local culture and have a significant effect on the quality of software. In countries
like Japan, a person remains with one organization till he or she retires from service.
On the other hand, in the developed countries of the Western hemisphere, it is
normal for people to be laid off at short notice (or fired), or change jobs frequently.
However, it was also seen that frequent changes to team composition result in
erosion of knowledge and know-how, which impacts software quality.
It also came as a surprise to the author to find that despite high employee costs,
which can be as much as 50% in many IT organizations, workforce quality remains
suboptimal. This affects organizations in multiple ways, such as low productivity
and poor operating efficiencies both of which adversely impact an organization’s
competitive position. Moreover, such companies are also poorly prepared to adapt
to the rapid changes in technology and the marketplace. Unwillingness to recognize
the seriousness of these challenges can have a severely detrimental effect on the
company.
Thus, as IT companies grow and expand globally, there is a need for a framework which supports a holistic quantitative-based approach to managing workforce
competencies by aligning them to business objectives. Such a framework should
help managements in making workforce-related decisions on performance-critical
matters. An optimally managed workforce benefits both employees and the organization which will result in improved performance at individual as well as company level. Companies have the responsibility to promote a work environment in
which employees are respected, encouraged to improve existing capabilities and
develop new ones.
The competency management framework presented in this book will be useful
for IT organizations in managing their workforce competencies effectively, which
can also help in reducing attrition. Organizations that outsource a significant part
of their work can employ the framework to assess the competencies of the vendor’s
workforce.
Preface
xi
The competency management framework presented in this book should help
business unit heads, HR and people managers to make the best use of their personnel by putting the “right persons in the right roles” and nurturing them. The
author invites readers and users of Role Competency Matrix framework to share
their experiences and views. These will be of immense value in improving the
framework for making better people decisions. Feedback and comments will be
welcomed wholeheartedly. The author will regard them as valuable lessons for
incorporation in a future edition of this book.
Pune, India
June 2019
Mahesh Kuruba
Acknowledgements
I would like to thank my gurus and mentors Dr. Gargi Keeni and Prof. Ajit Verma
for their guidance and support in developing the Role Competency Matrix
framework for my doctoral research. They also helped me to pilot the framework.
The results provided interesting and meaningful insights into use of the framework.
I’m grateful to Dr. Gargi Keeni, who is the inspiration for bringing my work,
through this book, to the community of practitioners and scholars. I am
also grateful to Prof. Verma for providing the opportunity to disseminate this work
in the IT industry.
A special mention must be made of my editor, Venkatanarayanan Ganapathi,
who helped transform a doctoral thesis into a book which, I hope, will be of value
to a large audience of practitioners. I would also like to thank all the participants
who were part of the study and helped with their inputs and data for the role
competency matrix.
xiii
Contents
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2 People Management Challenges . . . . . . . . . . . . . . . . . . . . . .
2.1 Need for a Competency Management System . . . . . . . . . .
2.2 Benefits of an Effective Competency Management System
2.3 The Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.4 Characteristics of an Effective CMS . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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3 Competency Management . . . . . . . . . . . . . . . . . . . .
3.1 Understanding Competency . . . . . . . . . . . . . . . .
3.2 The Need to Measure Competency . . . . . . . . . .
3.3 Competency Management . . . . . . . . . . . . . . . . .
3.4 Limitations of the Qualitative Approach . . . . . . .
3.5 Competency Mapping and Tracking . . . . . . . . .
3.6 Core Competency and Knowledge Management .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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4 Measuring Competency . . . . . . . . . . . . .
4.1 Need to Measure Competency . . . . .
4.2 Representing Competencies . . . . . . .
4.3 Competency Levels . . . . . . . . . . . .
4.3.1 Defining Competency Levels
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1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1 Competency Management is Vital for Business
1.2 Changes Impacting Workforce Competency . . .
1.2.1 Business and Technology Changes . . . .
1.2.2 Mergers and Acquisitions . . . . . . . . . . .
1.2.3 Disruptive Innovation . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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xv
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Contents
4.4 Competency Index . . . . . . . . . . . . . .
4.4.1 Employee Competency Index .
4.4.2 Workforce Competency Index
4.5 Competency Gap . . . . . . . . . . . . . . .
4.5.1 Employee Competency Gap . .
4.5.2 Workforce Competency Gap .
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Role Competency Matrix . . . . . . . . . .
Competency Frameworks . . . . . . . . . .
Developing a Role Competency Matrix
Competency Database . . . . . . . . . . . . .
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6 Role Competency Matrix—Applications . . . .
6.1 Selecting the Right Person for a Role . . .
6.2 Augmenting Competencies . . . . . . . . . . .
6.3 Planning for Career Progression . . . . . . .
6.4 Improving Competencies . . . . . . . . . . . . .
6.5 Monitoring Workforce Competency Index
6.6 Monitoring Workforce Competency Gap .
6.7 Making Outsourcing Decisions . . . . . . . .
6.8 Monitoring Competency . . . . . . . . . . . . .
6.9 Benefits of RCM . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . .
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7 Implementing RCM . . . . . . . . . . . . . . . . . .
7.1 Phases of Implementation . . . . . . . . . . .
7.1.1 Strategy . . . . . . . . . . . . . . . . . .
7.1.2 Prepare . . . . . . . . . . . . . . . . . . .
7.1.3 Pilot . . . . . . . . . . . . . . . . . . . . .
7.1.4 Implementation of RCM at Scale
7.1.5 Sustaining RCM . . . . . . . . . . . .
7.2 Implementation Approach . . . . . . . . . . .
7.2.1 The Top-Down Approach . . . . .
7.2.2 The Bottom-Up Approach . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . .
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8 Change Management . . . . . . . . . . . . . .
8.1 Communicating Change . . . . . . . . .
8.2 Showing a Sense of Urgency . . . . .
8.3 Continuous Engagement . . . . . . . . .
8.4 Realigning People to the Objectives .
8.5 Focus on Governance . . . . . . . . . . .
8.6 Organizational Processes . . . . . . . . .
8.7 The Role of Change Agents . . . . . .
Reference . . . . . . . . . . . . . . . . . . . . . . . .
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5 The
5.1
5.2
5.3
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Contents
9 RCM Analytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.1 Competency Analytics . . . . . . . . . . . . . . . . . . . . . . . . .
9.1.1 Categories of Analytics . . . . . . . . . . . . . . . . . . .
9.1.2 Data Sources . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.2 Applications of Competency Analytics . . . . . . . . . . . . . .
9.2.1 Hiring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.2.2 Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.2.3 Performance . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.2.4 Competency Development . . . . . . . . . . . . . . . . .
9.2.5 Career Progression . . . . . . . . . . . . . . . . . . . . . . .
9.2.6 Workforce Competency . . . . . . . . . . . . . . . . . . .
9.2.7 Managers Behavior . . . . . . . . . . . . . . . . . . . . . .
9.2.8 Attrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.2.9 Using Analytics for Defining Competency Levels
9.3 Challenges in Using Analytics . . . . . . . . . . . . . . . . . . . .
9.3.1 Common Mistakes in Competency Analytics . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
xvii
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Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
About the Author
Dr. Mahesh Kuruba is an Information Technology
(IT) professional with wide experience in research,
consulting, as well as product and application development. He is currently working as a product manager at
Digitate, Tata Consultancy Services (TCS). Till recently
he was Process Consulting Head for Japan and ASEAN
countries. There, Mahesh managed transformation programs, achieving substantial quantitative benefits for
various organizations. He also has wide experience in
software development and management in both conventional and agile methodologies. Mahesh’s doctoral
research at the Indian Institute of Technology, Bombay,
was on “Productivity loss reduction-based framework
for software process improvement.” He was also a
visiting scientist at the National Institute of Information
and Communications Technology (NICT), Japan, where
he pursued research on network security.
xix
Chapter 1
Introduction
In April 1993, IBM hired Louis V. Gerstner, Jr. as its new CEO. Between 1990 and 1992,
IBM had made a loss of nearly $16 billion. It had missed several technology shifts and
customers, who previously swore by brand IBM, began to move towards more responsive
and nimble competitors. Industry watchers had begun to write off “Big Blue” (as IBM is also
known as). Gerstner brought with him a strong, customer-focused approach, which meant
committing IBM to deliver integrated services and solutions rather than just hardware and
programs.
Gerstner diversified into information technology services, working on behalf of customers
in architecting and designing systems, managing applications and running them for the
customer. In 1992, IBM’s services earned $7.4 billion; by 2001, they became a $30 billion
business. The shift in business focus wasn’t easy because IBM was predominantly a product
company. The business models for products and services business are very different; and
so are the skills and capabilities required to manage them. Services are a human-intensive
business and heavily dependent on workforce knowledge and capabilities. IBM’s employees,
who were till then working on just products, had to work with various products, including
that of their competitors, to develop solutions for their customers. These required significant
changes in IBM’s people policies and processes, including recruitment, compensation and
incentive structures, and employee training. The focus was on developing the “Competencies
of the people”, and aligning them to “Organizational culture and needs”, which has resulted
in where we see IBM Global Services today [1].
Information Technology (IT) has been the dominant driver of global economic growth
since the late twentieth century. There is no doubt that it will continue to be so in
the foreseeable future. Today, virtually every aspect of our lives is impacted by IT.
The transformational ability of Information Technology is astounding. With cloud
computing and mobile solutions, businesses can access and deploy resources, as well
as carry out their operations, quickly and efficiently. Thanks to IT, the way business is
conducted today is unrecognizably different from what it was even a decade earlier.
“…and it is really that there is so much to leverage in science and technology. I think
most people don’t really realize that. There is so much that can be done with these new
technologies…” Larry Page in ‘The Google Story’ [2].
IT is integral to businesses’ efforts at increased productivity, improved efficiency
and outstanding service quality. Besides, IT has opened new business and market
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_1
1
2
1 Introduction
opportunities with innovative models that were even unthinkable a few years ago.
Today, we have IT companies like Uber and Ola, who provide on-demand mobility
services without the need to own a car; short-duration rental accommodation services
like Airbnb without the need to check into a hotel-owned property; and retailers like
Flipkart who provide the technology platform that helps sellers reach their buyers
with minimum logistical challenges. IT-enabled data analytics has enabled customer
segmentation to “segmentation of one” that businesses are now confident of refining
their approaches and make products and service offerings to deliver differentiated
services and value at low cost to each customer.
Most importantly, IT is driving innovation. There is demand for IT-enabled change
and improvements from everywhere. In the ever-changing market dynamics, customers are demanding faster delivery of services and better value for their money.
They want better products and services at a lower cost of ownership. The challenge
here is to use technology in multiple and creative ways to make business processes
more efficient, provide differentiated and on-demand services to customers, or to
develop new applications that generate the potential for establishing new businesses.
The Amazon Dash Button is a case in point. It is the company’s latest step towards becoming
a truly on-demand goods service, allowing customers to reorder household essentials with
the press of a button. The Dash Button is part of the Internet of Things (IoT) and connects
the user to his (or her) Amazon account via WiFi. Each Dash Button is linked to a specific
product—press the button, and it will automatically place an order for that product with
Amazon, with guaranteed next-day delivery [3].
Tata Consultancy Services (TCS), one of India’s biggest and most respected IT
companies, made a modest beginning in Mumbai about 50 years ago. Today, it is
its current worth is $100 billion. TCS’s customer-centric approach, using innovative
technology-driven solutions and service delivery models, has enabled their customers
to maintain market leadership in their respective businesses. Today, TCS routinely
bags multibillion-dollar deals, a rarity in the Indian IT industry.
TCS reached its preeminent position by focusing on innovation labs and products
to develop high-quality software for their customers. The first innovation center,
Tata Research Development and Design Centre (TRDDC), was established in 1981.,
TRDDC has developed several software products for TCS. According to its website,
TRDDC is “…one of India’s premier research and development centres…[whose]
goal is creation of tools and processes that simplify the development, maintenance
and management of large IT and engineering systems.” Some of the research work
from TCS’s Innovation labs has come out from product incubation to products, such
as ignio, which have helped TCS achieve a unique position in the market with its
AI-based automation [4].
The IT industry is in a state of constant churn. New technologies and applications
are being developed—and existing ones rendered irrelevant or obsolete—at a bewildering pace. Innovation is no longer a fancy add-on to a company’s capabilities; it is a
business imperative. Organizations that cannot sense the shifts in a business scenario,
and quickly respond to their markets’ demand for better products and services, are
doomed to oblivion. You either thrive to survive or wither and die. There is very little
space for an in-between state of existence in the IT industry.
1 Introduction
3
Advances in Information Technology resulted in steep decline in communication costs which in turn spurred the rise and spectacular growth of e-commerce.
E-commerce has revolutionized the way business is conducted, facilitating transactions between businesses (B2B) and businesses and their customers (B2C).
The transformational—and constantly transforming—nature of IT business
places a huge demand on the capabilities of its workforce. Technology may be the
driving force of the changes in the industry, but it is the ability of its workforce to
adapt—and respond—to the changes that decide whether a business will grow or
fade into nothingness.
Till not so long ago, people were hired for a certain set of competencies that
were expected to serve a company’s needs for many years. Given today’s business
scenario and the disruptive effective of technological changes, this no longer holds
true. Existing competencies quickly become irrelevant or obsolete. Therefore, it is
imperative that managements view competency development as a strategic imperative
that will drive its business goals.
Today, business changes are seen less as a “big shift”, or episodic, that takes
place occasionally and then forgotten; rather, change is a continuous and neverending process. Changes are taking place around us even without our being aware
of them. Companies need—or are compelled—to constantly review their objectives
and offerings rationally and honestly, and figure out what is it that they can do today,
and what their customers are likely to expect tomorrow.
In certain sections of the IT community, there is a growing concern over the
relevance of present skills and the need for a large-scale reskilling of the workforce.
Capgemini’s CEO, Srinivas Kandula, commented that 60–65% of the senior/midlevel cannot be trained. According to an estimate by NASSCOM, an Indian IT
industry body, 1.5 million IT staff needs to be retrained, a clear indication that IT
companies are not focusing enough on competency management [5].
Where is the Problem?
In today’s competitive business environment, all organizations are constantly trying
to attract and retain talent; but there are not many who are investing in building
competencies with a long-term vision. This is due to lack of a strategic direction
because of which the workforce is not adequately aligned to the vision.
To be successful, organizations must identify and leverage the strengths of their
employees. A defining characteristic of high-performance teams is the strength
of their people and the manner in which these strengths are leveraged to achieve
optimum contribution to business goals. Identifying competencies and strengths
works well for small teams. However, as team size increases the competency
management practices which served them well, start to fall apart.
4
1 Introduction
1.1 Competency Management is Vital for Business
Data analytics, mobile applications and cloud computing, which are projected to be
a $100-billion-dollar market, have fueled the growth of IT and IT-related businesses.
With the advent of new technologies, products and allied services, the competencies
which are required to develop products or services, are changing rapidly. This is presenting HR managers with unique challenges in attracting and retaining talent. The
cycle times in conventional talent acquisition models, which take several months, are
no longer viable. Organizations need to encourage employees to constantly upgrade
their competencies. For example, TCS ensures that everyone in the organization
understands this completely and speaks in the same language with the customer. The
focus is on developing and upgrading employee competencies internally. In 2016–17
alone, over 200,000 employees were trained in various digital competencies [6].
TCS has now set a target to become an enterprise agile organization by 2020.
TCS could not have put Indian IT on the world map without the Tata values
and culture which fosters a learning environment for its employees, encouraging
them to improve their competencies and develop new ones. The scale at which
the organization has been growing would not have been possible in the absence of
facilitative processes.
People are core to, and the face of, the IT business. There are no two opinions
about it. What is crucial, however, is to make employees responsive and agile so
that their competencies are always current and aligned to the business goals of the
company. This is where competency management plays a big role because business
requirements are constantly changing with a change in the technology ecosystem.
IT organizations which develop and maintain software applications have to operate
in diverse sectors of business and industry. As the IBM story tells us, people are
required to possess a wide range of domain knowledge and technical expertise to
provide customized products and services. IBM ensured that the key competencies
of their employees remained current and relevant, and aligned to their organizations’
business needs. Put another way, the company managed its competencies well by
responding quickly and effectively to the changes in strategy and market needs.
On the other hand, there are also product development organizations who focus
on certain domains only. These organizations require people with domain-related
skills and expertise. Here, there is not much diversity in competencies. However, such
organizations must not only be able to consolidate, in their business but also grow in
a competitive environment. Therefore, their employees must possess competencies
that are current and relevant to the demands of the market. The question, then, would
be—how do we manage such organizations? Or, how can companies meet these
challenges?
Competency management is an important component of people management practices. It aligns workforce competencies to a business’s strategic goals and objectives.
Competency management is integral to an organization’s management practices
because it enable optimal use of its intellectual capital and is key to its continuining existence. Developing and implementing a fair and objective competency
management system is a complex task. This is because of the differing perspectives
and expectations of management and the workforce.
1.2 Changes Impacting Workforce Competency
5
1.2 Changes Impacting Workforce Competency
1.2.1 Business and Technology Changes
IT organizations must constantly change or upgrade their software applications and
technologies to meet the ever-changing business process needs. They do this by
enhancing existing capabilities and developing new ones. The technologies used
for developing applications keep changing, or are being upgraded. Thus, the IT
department in a company is in a constant state of playing catch-up and at the same
time, keep costs under control. For example, companies running their own data
centers are now moving to cloud-based operations so that they can focus on doing
what they are good at and also achieve significant reductions in infrastructure costs
and staffing costs.
But such changes are not without challenges. To understand this point better, let us
consider the example of one company that recently implemented a cognitive-based
automation solution for performing repetitive tasks in their infrastructure operations.
This organization implemented an automation solution which resulted in saving of
150 people-worth of effort month on month. These employees were doing repetitive
work for several years. With the changes, the organization was in a situation where it
did not know what to do with these people whose work was automated. The options
before the management are obvious: let these employees go or reskill them for new
roles in the organization.
Technological changes tend to disrupt the workforce’s current competencies.
However, with innovation being key to an organization’s survival, the transformation
is both essential and unavoidable. Businesses can manage the transformation process effectively and with minimum pain if enough attention is given to people and
managing their competencies.
The Managements of organizations going through such transformations need to
assess their people competencies and plan for suitable competency development
activities, a priori, to ensure that they remain relevant for the organization’s business
needs. Thus, the assessment of employee competencies must be an integral part of
people processes.
1.2.2 Mergers and Acquisitions
To accelerate growth and increase market leadership, companies acquire other companies or merge with them. In the IT industry, large companies routinely acquire
start-ups which develop niche products or technologies. This trend is likely to continue. BCG reports [7] that there were 43,000 Mergers and Acquisitions (M&A)
transactions in the last 20 years in the IT industry. However, what is less known
is that a large percentage (some estimate it at about 75%) of M&As failed to
achieve their objectives [8]. One of the main reasons for failure is poor transition
6
1 Introduction
management of people competencies which results due to which the merged entities
lose talented employees [9]. Thus, competency management during an M&A must
be given special attention.
Often, the bigger organization (usually the acquiring company) has the major say
in deciding which employees it wants to keep, and the ones that must go. Smaller
companies usually work in niche segments to address specific problems for better
value addition. There is little appreciation of the special talent and competencies
that exist in the organization being acquired. Consequently, a considerable amount
of talent and skills are lost during the acquisition process. In another possible scenario, two companies having a strong presence in different countries decide to merge
for increasing their market penetration. However, due to significant cultural differences that may exist in the two organizations, a M & A may cause conflicts due
to mismatch of expectations and consequently, employees’ exit. In such a situation, the organization’s competency management system must also regard “cultural
adaptability” as a competency for which employees need to be trained or sensitized.
1.2.3 Disruptive Innovation
Technology is transforming the nature of work. Technology is not just for technology
companies alone. Every industry is impacted, mostly positively, by digital methods,
mobile applications, cloud, and analytics. Advances in robotics, Artificial Intelligence (AI), and Internet of Things (IoT) are making augmented intelligence for the
workforce a reality. Companies that are not leveraging the potential of technology,
or are slow at innovating, will cease to exist.
Organizations have realized that if they don’t disrupt, they are at risk of being
disrupted by someone else. This awareness is driving several organizations including
the large service organizations to innovate constantly in various ways—whether in
terms of technology, or services, or products, or business models. Organizations must
work toward creating a culture for innovation, collaboration and a structure to enable
innovation.
The well-known Malcolm Baldrige Model recognizes the workforce as one of the
pillars of business. The Quality of the workforce is determined by its competency,
which is reflected in the company’s products and services. Workforce competency
is driven by innovation, culture, and people which, when managed well , can have
1.2 Changes Impacting Workforce Competency
7
Innovation
Culture
Workforce competency
Business results
People
Fig. 1.1 The drivers of workforce competency
a long-lasting impact on the business. Any changes due to innovation or culture or
people, will have a direct impact on workforce competency and the business results,
as shown in Fig. 1.1.
References
1. Gerstner, L. V. (2003). Who says elephant’s can’t dance? Leading a great enterprise through
dramatic change. USA: HarperBusiness.
2. Vise, D. A. (2008). The Google story. UK: Pan Books.
3. Shepherd, A. (2016). What is Amazon dash. Retrieved August 2016, from http://www.itpro.co.
uk/strategy/27167/what-is-amazon-dash.
4. TCS. (2017). Co-innovation network. Retrieved 2017, from https://www.tcs.com/content/dam/
tcs/pdf/research-innovation/l1/Co-Innovation-Network-Brochure-Web.pdf.
5. https://timesofindia.indiatimes.com/toi-features/business/capgemini-india-chief-says-65-of-itemployees-not-retrainable/articleshow/57232478.cms.
6. TCS Financial Report. (2017). Retrieved from https://www.tcs.com/content/dam/tcs/investorrelations/financial-statements/2016-17/ar/TCS%20Annual%20Report%202016-2017.pdf.
7. Kengelbach, J., Keienburg, G., Schmid, T., Sievers, S., Gjerstad, K., Nielsen, J., & Walker,
D. (2017). The 2017 M&A report: The technology takeover. Retrieved September 2017, from
https://www.bcg.com/en-in/publications/2017/corporate-development-finance-technologydigital-2017-m-and-a-report-technology-takeover.aspx.
8. Charman; A. T. Kearney study conducted in 1998 and reported in Haebeck, M. H., Kroger, F.,
& Trum, M. R. (2000). After the mergers: Seven rules for successful post-merger integration.
New York/London: Prentice Hall/FT.
9. Schuler, R. S., & Jackson, S. E. (2001). HR issues, activities and responsibilities in mergers
and acquisitions. European Management Journal, 19(3), 239–253.
Chapter 2
People Management Challenges
Organizations continue to experience talent acquisition and retention challenges
globally. Employers everywhere are finding it difficult to get and keep top talent
[1].
There is restlessness and tension in the workplace. Rapid advances in technology are
making organizations scramble to adapt and stay relevant in their businesses. This
puts employees under constant pressure to develop and deliver products, services,
and solutions to their increasingly demanding customers.
Both organizations and their employees have high expectations for each other.
Managements are aware that they must nurture talent to grow their business. They
also recognize that the models and practices, which served them so well in the past,
are likely to be of limited value as they strive to remain relevant. They must find ways
to engage with employees in various ways—and at various levels—to sustain their
growth and success. However, fully understand the implications that technological
advances and the changing market dynamics can have on employee relationships.
As it is with all sectors of business and industry, the IT workforce also has high
expectations. At a fundamental level, they want to feel valued by the organizations
they work for. Besides fair treatment and pay, which are often perceived differently
by management and employees, employees also seek opportunities for advancement
and personal growth. They also expect quick recognition of their capabilities and
suitable reward for performance.
But technology is also disrupting jobs in a manner—and at a pace—that many
people find difficult to come to terms with. Employees are also aware that the highlyvalued skills they possess currently may not be of much use in the not-too-distant
future (Readers may recall that mobile applications and cloud computing were virtually unheard of even 10 years earlier). Thus, they are unsure of their place in the
ever-changing scheme of things. For this reason, they expect a more meaningful
relationship with their employers, along the same lines as their company’s connect
with customers.
The perception, real or imagined, of not being valued invariably leads to
employee demotivation. This can result in poor quality of software, or even in
employees leaving the organization. An employee may feel that he or she is being
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_2
9
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2 People Management Challenges
underutilized or assigned tasks which, in the employee’s view, do not match his (or
her) capabilities and aspirations. S/he may even feel that colleagues with similar
abilities are being deployed in more challenging assignments. Such feelings are not
easy to counter in a rational manner, especially when management does not have
objective data about role profiles and employee competencies. It is not surprising,
therefore, that managers view appraisal time with considerable apprehension over
the possibility of losing their “star” employees, and the consequent pressures of
identifying and recruiting suitable replacements in short time.
The perception of being the “wrong person in the wrong job” is not easy to dispel.
It is just as difficult for management to decide on “the right person for the right job.”
Readers may recall the funny but telling advertisement of the job portal, Monster
India, in which a dancer in full costume is marshaling aircraft at the airport. Another
ad showed a fully-kitted cricketer washing laundry. The message in both ads played
on the dissatisfaction—real or perceived—that people felt in their present jobs. In
effect, the viewer was being urged to seek more promising opportunities through the
portal.
People bring different characteristics to their work. Broadly, they are categorized
as creative or organized. Creative people are constantly seeking challenges, such
as complex problems, with more focus on technology (and less on processes). Such
people are usually not well-organized. Organized people, on the other hand, are more
methodical and disciplined, completing their tasks on time and to the specified standards. The question, then, is one of whether the role requires a creative or organized
person. Instances where a person doesn’t fit well in the role given to them are common in the IT industry. People who are organized are put in roles that demand high
levels of creativity, and those creatively inclined are expected to work in roles that
require a high degree of organization and discipline.
Having a “wrong person in the wrong job” and overlooking employee capabilities
and aspirations, often ‘in company interest’, lead to high attrition in the IT industry.
Employers are finding it increasingly difficult to recruit and retain talent. Peoplerelated issues are the subject of discussion at all levels in and across organizations.
Views often conflict, even in the best-run organizations.
“I am good at Digital Signal Processing (DSP but [I] have been assigned to a banking- related
product”.
“I am more competent than my product manager, but I am still working as a technical lead.
Our HR guys don’t know how to manage the [human] resources”.
“In my company, people become product managers after 3–4 years of programming experience even if they are not fit [for the job]”.
On the other hand, a manager might take a different view
“If I need four people who have worked on #.net technology for at least 2 years, I have to
requisition HR to allocate six people who have 4 years’ experience [in #.net technology].
Only then will I get what I need”.
Evidently, there exists a wide perception gap between what an employee feels that
he (or she) is capable of and one held by a manager in his (or her) expectation of team
members’ competencies. If this gap is not recognized and addressed, at some point
2 People Management Challenges
11
sooner rather than later, people will leave the organization. It is possible that such
feelings are often subjective and governed by employee emotions. However, they
pose a major challenge to people managers, particularly in the absence of a fair and
objective system that matches employee expectations, job profile, and requirements
to their competencies.
Attrition is a problem. It impacts organizational well-being in several ways.
Employee attrition can adversely impact a company’s operations and, consequently,
the top line. Hence, it should not be taken lightly. The only people who are likely
to benefit from attrition are the competitors. Not only do people take valuable and
carefully nurtured competencies with them when they leave, high attrition levels also
have an adverse effect on customer relationships. Customers are more likely to view
organizations with high employee turnover as a significant risk to service quality.
However, organizations also have their concerns.
“I am not able to meet the quality and schedule targets due to inexperienced people in my
project team” (The project manager).
“How can I provide increased compensation every year. Till when can we keep increasing
salaries and employee benefits [without significantly affecting employee costs]?”. (The HR
Head).
“Our billing rates are coming down due to fierce competition in the market. I can’t [afford
to] retain the senior people” (The CEO).
Unlike organizations that are in the early stages of maturity, high-maturity organizations have clearly defined career progression paths in which a person is expected
to have performed in certain roles and activities before being considered for a promotion to the next role. In certain companies, which are still evolving toward maturity,
people are expected to scale up quickly. As one employee working in a growing
and yet-to-mature organization remarked, “People with 3–4 years of programming
experience are made project managers even if they lack the capabilities for the role.”
Not surprisingly, these concerns were echoed in a workshop of HR professionals
in which, after discussions and experience-sharing, the participants compiled their
common challenges:
•
•
•
•
•
•
•
•
•
•
Quickly aligning employee roles with company strategy.
Scaling workforce in response to business requirements.
Placing the right person in the right role.
Using available competencies fully, keeping in mind employee aspirations, aptitude, and organizational need.
Making every individual connected with the organization.
Reducing attrition.
Managing high performers.
Managing (facilitating) superior–subordinate relations.
Career planning and development.
Promoting a culture of learning and change.
12
2 People Management Challenges
• Employee integration and making the employee aware of the roles he/she can
take up.
• Managing expectations of new hires/employees.
These challenges can be grouped under the following broad heads:
• Communication of organizational vision and business objectives to the workforce
at all levels.
• Articulation of management expectations of employees’ roles and performance.
• Identifying the competencies which are available in the organization and
then matching them to role requirements, and working towards closing competency gaps.
In addition, there is also the need to assess employee potential and performance in a
manner that is seen by the employees as fair, objective, and transparent. The approach
to fulfilling these needs forms the basis of competency management systems.
2.1 Need for a Competency Management System
The IT industry is people-intensive and very different from other sectors, such as
automotive and manufacturing, which are more process-oriented. There, the processes determine the quality of the product. Replacing one set of workers on the
shop floor with another group having similar capabilities is not likely to have an
adverse impact on product quality. But in the IT industry, dependency on the person
is high. Replacing a knowledgeable employee with a not-as-knowledgeable one can
affect product quality. People and their competencies define the core competency of
the organization and in turn the strategy of the organization, in terms of the products
and/or services the organization can provide. This strategy defines the competitive
advantage of the organization over its competitors [2].
Commitment to employee competency development and management, as well
as establishing appropriate systems and processes for ensuring that competencies
remain relevant, must be made an essential part of the organizational policy. An effective competency management system is one that is objective, fair, and transparent
giving everyone concerned—employees, management, and HR—an unambiguous
picture of present competencies and a roadmap for the future.
Competency management is an organizational process that helps to align workforce skills to a company’s business vision. By proactively and systematically tracking employees’ competencies, companies will be in a better position to identify
training needs and take the right staffing decisions. Larger the organization, greater
is the need for a competency management system.
Typically, competency management helps organizations to find the answers to
these important questions:
• Are the present competencies relevant and adequate?
• What value do they add to the business? What value could they add in the future?
• What is their link with the principal business challenges?
2.2 Benefits of an Effective Competency Management System
13
2.2 Benefits of an Effective Competency Management
System
Organizations must treat competency as a vital component of its intellectual capital.
An effective CMS gives clear insight about the alignment of workforce competency to
organizational vision and business objectives. It also increases the scope for enhanced
employee motivation and engagement in organizational efforts. Effective competency
management will help to create a real-time inventory of employees competency, and
identify strengths and competency gaps. Management can then use this information
to plan targeted skills development programs to improve individual and workforce
performance, which will lead to better business results.
An effective competency management system will yield the following benefits,
all of which can significantly contribute to mitigating the problem of high employee
turnover:
• Improved understanding of expected employee behaviors and performance.
Organizations that make the effort to clearly define the competencies needed for a
given job role, specifying the proficiency level for each competency, have a better
chance of achieving business excellence.
• Improved talent planning. The results of competency assessment guide management about current capabilities and helps in planning for recruitment, training, or
outsourcing to attain future capabilities.
• Competency-based employee development. Organizations that have competency
standards for each job role will be able to objectively evaluate individual employees and their suitability for a given role. Moreover, they can identify people with
potential and provide them with training and on-job opportunities to develop
competencies to the levels required for the role.
• Building a talent reservoir. With an effective competency management system,
organizations are better prepared for development and succession planning that
is unaffected by the business environment or economic conditions, by building a
pool of people with appropriate competencies to achieve business goals.
• Improved operational efficiencies. Effective competency management facilitates
business-driven learning and development and promotes higher levels of employee
satisfaction.
• Integrated talent management processes. Effective competency management
becomes the standard by which organizations can manage all phases of the
employee engagement process: from recruitment to development, to retention
and reward.
2.3 The Challenges
However, there are challenges in implementing an effective CMS at both strategic
and operational levels. In many organizations, it is seen more as a routine HR process
than a business necessity the result of which is that, often, there is weak alignment
14
2 People Management Challenges
of competency management with business goals. Often, critical job responsibilities
and success criteria are not clearly specified. Even in companies that recognize the
need to develop competencies, there is insufficient investment in competency development . Inevitably, at some point, these organizations find themselves in a situation
where they are unable to keep up with the changes in the business environment.
Nokia, a global leader in mobile phones in late 1990s and early 2000s, sold its mobile handset
business to Microsoft in 2013. Once a household name, Nokia products today have just 3%
of market share. What happened? Nokia focused more on hardware and their engineers were
building devices. Despite signals from the market, not much attention was given to developing
better and more efficient software. On the other hand, Apple encouraged employees to work
on both hardware and software. This they did in cross-functional teams, bringing together
ideas and producing a superior quality mobile phone, the iPhone, which caused a huge
upheaval in the mobile phone market. Nokia’s response in trying to regain its lost market
came rather late as Apple products had already made an impact and set the benchmarks in
the smartphone market. Nokia’s attempts were also beset with poor quality of the OS and
un-intuitive user interfaces.
The Apple experience shows that constant innovation is key to a technology company’s
survival. Companies that are late to respond will find that their customers would have already
have switched their loyalty. Nokia was not only late, its smartphones, when they finally
arrived in the market, were of poor quality [3].
At the operational level, objective and evidence-based individual and organizational information on competency are hard to come by. Besides the inability (or failure) of management to identify critical competencies, employees are often reluctant
to share, or update, their competency profiles. Where such information is available,
organizations are not quite sure about how to use it. This is largely due to the lack of
understanding of the need to leverage competency data to make business decisions,
which is a major reason why an organization is unable to clarify its competency
requirements. (Management is often slow to accept the fact that poor product quality
is a likely consequence of its failure to optimally leverage its people’s competencies,
or the failure to identify and address competency gaps in a timely manner.)
2.4 Characteristics of an Effective CMS
Besides fulfilling the obvious need for objectivity in approach and methods, an effective competency management system must meet these expectations:
a. Enable employees to achieve the appropriate levels of competencies required to
perform roles effectively (through formal or on-job training).
b. Ensure that training needs are goal-oriented, and that the training is purposive
and cost-effective. This ensures that training is aligned with the organization’s
business needs and objectives.
c. Empowers and encourages employees to proactively acquire new competencies
that are valued by the organization.
d. Enable management to make timely staffing and outsourcing decisions.
2.4 Characteristics of an Effective CMS
Mobile apps
Y2K
2001
1999
15
IoT, Big data
2010
2008
.com
Deep learning,
Machine learning
2023
2015
2027
2020
2013
Cloud
computing
4D printing, Human
augmentation
Analytics
AI, Block
chain
Fig. 2.1 Changing trends in the IT sector
e. Enable management team to plan for their succession.
In summary, both management and the workforce must accept that technology
has transformed—and will continue to transform—the workplace, both in terms of
the nature of the products and services that their customers expect, and how the
work gets done. It is imperative for organizations to keep their employees engaged
and nurture competencies and behaviors critical for achieving the desired business
outcomes.
When the author started career with one of India’s largest IT services organization
in 1999, the country’s IT sector had just entered the phase of rapid growth. Worldwide,
there was a great demand for mainframe programmers to fix the Y2K problem.
Several thousand programmers were trained on mainframes to fix this. After Y2K,
came the dot-com bubble for which the workforce started working with Java and
.NET. By 2002, the dot-com bubble had burst, changing the IT scenario once again.
By 2008, organizations shifted their attention to mobile applications which became
the major driver of innovations in IT. The cloud wave followed a few years later
after which it was the turn of Artificial Intelligence in the spotlight. Past, present,
and likely future trends are presented in Fig. 2.1.
One must understand that changes in the IT sector are taking place at such a rapid
pace that it is difficult—and risky—to predict with confidence what the future will be
like, even 5 years from now. This underscores the need for businesses to be always
in a state of preparedness to respond to the challenges these changes will bring
with them. This depends largely on managements’ recognition of the need—and
their willingness—to ensure that workforce competencies are current, as well as
adaptable to future needs.
The Indian IT industry, which began with low-value programming and progressing quickly to outsourcing, business process outsourcing, and infrastructure work,
has become a sophisticated and highly respected entity. The IT Infrastructure business itself, which was once regarded as just an internal support function for the
organization and hence of not much significance, has undergone significant changes
and is now a multibillion-dollar business [4].
Change is the only thing that is constant. The rate of change in the IT sector
has been exponential. Companies that were industry icons until a few years ago are
hardly talked about today. The organizations that survived the changes and prospered
are those that have constantly innovated to keep up, adopting new technologies,
16
2 People Management Challenges
implementing new operating models, and breaking into new market segments. Each
change demanded a set of distinct competencies at both organizational and employee
levels.
How crucial is workforce competency management? To understand this question
better, let us look at the large-scale layoffs that occurred in 2017 in the Indian IT
sector. This was uncharacteristic of Asian companies where, once an employee joins
an organization, he (or she) remains with it till retirement. The CEO of a large
IT services company once remarked that over 50% of its senior staff cannot be
trained. The issue is more common than one would like to admit. People are pushed
to managerial roles from engineering positions and suddenly, after two decades,
organizations find that they are unmanageably top-heavy with people who are not
adding any value.
This is a classic example of workforce mismanagement. Most of these organizations had taken a myopic view of their business. To capture the market for IT services,
they recruited people in large numbers without a long-term strategy or plan for developing their workforce. People were recruited to fulfill immediately-needed skills.
However, due to a lack of vision for workforce competency development, within a
short time, the managements realized that they had a large number of employees
who could not be trained and were thus of limited value. The problem was more serious at senior levels. Laying-off these people would have been a convenient option,
but this overlooks the need for companies to be responsible for optimally managing workforce competencies to fulfill business needs, keeping pace with technology
trends, and ensuring the relevance of workforce competencies.
References
1. Global Talent Management and Rewards and Global Workforce Studies. (2016).
2. Rothaermel, F. T. (2008). Technological innovation: Generating economic results.
Elsevier. Retrieved from https://www.scheller.gatech.edu/directory/faculty/rothaermel/pubs/
RothaermelCompetitiveAdvantageFinal.pdf.
3. Surowiecki, J. (2013). Where Nokia went wrong. Retrieved September 2013, from https://www.
newyorker.com/business/currency/where-nokia-went-wrong.
4. PWC report: Indian IT/ITes Industry: Evolving business models for sustained growth. (2010).
Chapter 3
Competency Management
3.1 Understanding Competency
Simply put, competency is the ability to do a job properly. An automobile mechanic
has the competency to diagnose problems in a vehicle and carry out the repairs
needed to get the vehicle working again. On the other hand, an automobile engineer has the bigger responsibility of designing and manufacturing new vehicles,
manufacture them, as well as to improve the safety and performance of existing
automobile designs. Although both work with automobiles and perform important
roles, the mechanic and automobile engineer require a different set of skills and
knowledge, which are specific to their respective roles. Therefore, competency is
always role-specific.
In the IT industry, we come across different types of programmers. Some are outstanding people who can develop a complex functional code quickly, but which may
contain defects. For example, the code may not have been indented or commented
upon properly; or the logging was insufficient, making it difficult to maintain the
code. The code may not have been written to handle database connections, resulting
in connection leaks. Despite being very good programmers, if they lack knowledge
of basic coding practices, it becomes difficult to rely on the software developed by
them. Such programmers may be good for developing prototypes; however, they may
not be of much value for building production-quality systems which are required to
be defect-free, high performance and easy to maintain. Thus, in addition to technical competencies, behavioral competencies are equally important for a role, as
highlighted by the following definitions:
Competency is a combination of tacit and explicit knowledge, behavior and skills that gives a
person the potential to perform a given task effectively. Scholars have defined it in various
ways with the objective of giving competency a more unambiguous and objective meaning.
The Treasury Board of Canada Secretariat defined competencies as “…the knowledge, skills,
abilities and behaviors that an employee applies in performing his/her work and are the key
employee-related levers for achieving results that are relevant to an organization’s business
strategies” [1].
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_3
17
18
3 Competency Management
Competencies are a combination of knowledge, skill, ability, and personal characteristics. Properly specified, they give employees a clear guide of what is expected
of them to perform well in their jobs. By clearly identifying the competencies needed
for a given role, the emphasis shifts from formal qualifications and career history
to a proven capability to do the job. They can also be regarded as key qualities that
employees must possess to be entrusted with a specific job. The competencies specified for a role are the benchmarks that organizations use to assess and rate their
employees’ performance.
Organizations require their employees to possess an optimum combination of
competencies to be able to contribute to their business goals. These competencies
may include, depending on the job profile, a combination of technical and behavioral
competencies.
• Technical competencies: Technical competencies are the basic competencies
required for a role. They are required to perform a job and deliver products
and/or services within a specialized area, or areas, in the Information Technology field. For instance,1 for a project manager, competencies include planning,
monitoring and control, risk management etc.Technical competency for a programmer can include Java, Python, Perl programming, etc. For an automation tester,
some examples of technical competency are selenium, Tosca, QTP, etc. technical competencies. For an infrastructure engineer, Cisco router/switch networking,
VMware server virtualization, AWS cloud, etc., are the required technical competencies. These are a few examples of the diverse competencies needed by the IT
sector.
• Behavioral competencies: Every role needs interaction with other functions in the
organization. The degree of interaction may vary based on the organization type,
structure and role. Behavioral competencies become extremely important along
with technical competencies and determine the success of a person in the role
because they enable him (or her) to perform effectively. The behavioral competencies required at the workplace include
– Interpersonal, which is the ability to work with individual(s) and achieve
the required objective through coordination with colleagues and prioritizing
activities.
– Communication, which is the ability to communicate effectively, in a given
context, with the appropriate people in appropriate ways (written or oral).
– Accountability, which is the ability to perform a job, ensure its completion,
make decisions, and take ownership for its success or failure.
– Problem-solving, which is the ability to analyze issues, and develop solutions
that meet performance quality standards.
1 The
IT industry serves all sectors of government, business and industry. Software products and
applications are driving improvements in productivity and efficiency, accountability and transparency. The IT industry uses a wide range of domain and technical knowledge, as well as skills.
The examples referred here are just a small fraction of the diverse competencies required in the IT
industry. The purpose is to explain how the underlying principles can be applied to competency
measurement.
3.1 Understanding Competency
19
Competencies exist at two levels—individual and organizational. Individual
competencies are, as we have seen already, a combination of a person’s knowledge,
skills, and process abilities that he or she uses to perform the entrusted job effectively. On the other hand, although organizational competencies can be interpreted
in various ways, it is generally accepted that they are much more than the sum total
of the competencies of their employees. The stress is on the word “Organizational”.
Organizational competencies include the competencies required to drive the business. Organizational competency reflects the businesses’ value systems, strengths
and ability to set strategies and policies, know-how developed over a period of
time and effectively manage its resources to achieve short and long-term goals. It is
also called as “workforce competency”.
Organizations are usually known by their core competencies, which is reflected
through its brand image. These are the competencies that give them a competitive
advantage in the business they are in. Organizational competencies are a synergistic
blending of the core competencies that each of their employees brings to their work
every day.
Organizational or core competency is defined in various ways. The idea of core competency
was first introduced and defined by Prahlad and Hamel [2] as “…the collective learning of an
organization, especially how to coordinate different production skills and integrate multiple
streams of technologies”.
Core competency is also defined as “…the collective know-how of an organization that gives
it a competitive advantage. This know-how is a result of learning that is driven by business
strategy and built through a process of continuous improvement and enhancement that may
span a decade or longer” [3].
Core competencies are the company’s characteristic areas of expertise and consist of the
synergy of “resources” such as motivation, employee effort, technological and professional
expertise, and ideas about collaboration and management [4].
Core competencies reflect the collective capability of an organization. They are
the heart of an organization because they are crucial to its growth. High-maturity
organizations take great pains to identify and articulate their core competencies and
communicate them in appropriate ways to their various stakeholders.
Organizational competency is not a static attribute; it grows and evolves with
experience. Mature organizations are continually leveraging their competencies to
redefine mission objectives, ensuring that are always aligned to business needs, as
well as improving perfromance. Driving these efforts are a set of processes that
come under the broad umbrella of competency management systems. Competency
management practices ensure that an organization has people with the required
talent and competencies to achieve its business goals.
These practices are supported by systems that track competencies of business
units and individuals over a period, by collecting, storing and managing competency
information, and guide competency-based decisions.
20
3 Competency Management
3.2 The Need to Measure Competency
You can’t manage it if you don’t measure it (Peter Drucker).
The reason is simple. It is impossible (or at least extremely difficult) to determine
success unless the objectives are clearly defined. This means that organizations must
set tangible metrics for measuring these objectives to be successful in business. It is
no different for assessing competency.
All organizations are aware of the need to nurture their employees. Competencies
are central to the strategies and processes driving organizational performance and
business growth. By clearly identifying these competencies, organizations can ensure
that they are recruiting the right people and putting them in the right roles. Measuring
competencies helps them to understand where to direct resources to achieve optimum
outcomes in competency development, such as incentives, coaching, and training
programs. Measuring competency gaps—the difference between required and available competencies—helps organizations in addressing them proactively through
coaching and training, allowing the company to focus on the areas crucial for
business performance and profitability, employee engagement and retention.
How Competency Measurement Helps
Objective assessment and evaluation of competencies add immense value to organizational processes in multiple ways.
• In workforce planning
Measuring competencies makes it possible to objectively evaluate employee and
workforce performance. It also enables skills-gap analysis which can reveal what
needs to be done to bridge the disparity between available skills and the skills
needed. Moreover, competency measurement can help in optimum allocation of
available competencies to various projects, as well as putting them on career paths
that match their aspirations and fulfil business objectives.
• In Recruitment management
Workforce planning becomes the input for recruitment. Recruiting the right person
for a specified job is a complex task. In today’s scenario, in most of the cases,
the aptitude of the candidate and “gut-feel” of the interview panel that influence
recruitment decisions. While screening or reviewing the candidate’s profile, role
definition is used as a reference. Competency measurement can be used to compare
the capabilities of the candidates with the requirements of the offered position [5].
Thus, selecting the right person for a job greatly increases productivity and overall
efficiency of the organization.
• In career development
Employees can compare the competencies specified for a role with the ones they
possess. This knowledge will help them to identify the positions that they are best
suited for, and in their career planning.
• In training and development
3.2 The Need to Measure Competency
21
Training is “the systematic acquisition of skills, knowledge or attitudes that result
in improved performance in the work situation” [6]. In the rapidly changing IT
industry, purposive and systematic acquisition of new competencies is essential.
Training needs are assessed at three levels: organizational, role, and individual.
At the organizational level, it involves an understanding of organizational values,
behaviors and to determine how knowledge gained from training will be applied
to the job in day-to-day operations. Role analysis involves an examination of the
tasks that comprise a job and determining which knowledge, skills, and abilities
are needed to perform these tasks efficiently. At the individual level, training
needs analysis helps to identify which employees need training and the areas in
which training is required.
To summarize the discussion in this section, it is the organization’s core competencies that help it to define and sustain its position—reputation—in the sector
or industry it is active in. Measuring competency is critical for assessing the gaps
that may exist between what is available and current as well as future needs. Competency assessments provide vital information for management to frame appropriate workforce development strategies and plan the necessary training and development programs for their employees (or) recruit people for open positions. Such
an approach benefits both the organization and its employees. It provides organizations with a means of upgrading the competencies of its workforce, making the
employees feel valued because training and development programs enhance skills
and increase prospects for career growth.
3.3 Competency Management
Competency management is the process—or set of processes—for acquiring, developing, nurturing, and managing competencies to foster superior employee and workforce performance. From the definition, it is obvious that competency management
is crucial to business success. Thus, competency management systems are designed
to permeate to all levels of decision-making—strategic, tactical, operational, and
individual (Fig. 3.1).
At the strategic level, competency management drives business growth and
expansion of a company into new domains and geographies, or in adopting new
technologies for achieving business goals. At a tactical level, competency management includes the deployment of people and their competencies to achieve optimal
business outcomes. At this level, they ensure that operational-level competency
management activities are aligned to the strategic directions of the competency
management system.
At operational level, competency management is usually the responsibility of
project managers. Since they are responsible for product delivery and ultimately,
revenues and customer satisfaction, the project managers are expected to specify the
competencies that their team members must possess to meet product requirements.
22
3 Competency Management
They are also responsible for identifying the training needs (theirs as well as those
working with them) and planning appropriate training to close the competency gap.
At individual level, competency management assists individuals in identifying
the gaps between the organization’s expectations and the competencies present in
individual employees so that they can plan and work towards improving them, and
align those to the organization’s business goals. Thus, competency management also
empowers employees to take responsibility for their career development.
The responsibility matrix for competency management is shown in Table 3.1.
Although companies are acutely aware of the need for an effective competency
management system, for various reasons, their efforts at competency management
often result in less than optimal outcomes for organizational development. These
reasons are largely related to people management practices. Efforts at designing
and implementing fair and objective competency management processes are often
defeated by poor understanding of needs and a haste to meet short-term objectives. It
is common for managers to use a standard competency model with an assumption that
what worked in one place would work well here also.
Moreover, competency management in many organizations is mostly limited to
fulfilling the immediate needs of recruitment and performance appraisal. These are
often guided by qualitative assessments that are sometimes highly subjective and
having a significant element of “gut-feel”. The focus is more on conformance to
a need, which itself reflects how management views the need and objectives of
their people management processes. Such an approach does not serve long-term
organizational and individual needs.
Strategic
Tactical
Operational
Individual
Competency
Information Database
Fig. 3.1 Competency management system
3.4 Limitations of the Qualitative Approach
23
Table 3.1 A typical responsibility matrix for competency management
Strategic level
CEO, CIO, Senior
managers/Executives
Responsible for business strategy
and venturing into new domains,
geographies, products, services,
adoption of new technologies
Tactical level
Middle managers, Business
unit/Department/Functional heads
Responsible for planning staffing,
competency development,
recruitment for the unit/function
Operational level
Project managers
Responsible for identifying
competency requirements for the
project, competency development
planning and tracking for their
project team
Individual level
Team members/Employees
Responsible for identifying
competency gaps for the role and
enhance competencies to bridge the
gap
3.4 Limitations of the Qualitative Approach
The qualitative approach is not necessarily a wrong one. It may serve smaller organizations who have a limited number of products or who are doing outsourcing work
for bigger companies. Even in such companies, given the dynamic nature of the IT
industry, there will be pressure to respond to the rapid change that are taking place.
An IT company, which had started as an outsourcing vendor, had to manage a large workforce
with diverse technology skills. From time to time, employees had to be cross-trained in
various competencies to ensure their relevance to current needs. But it was not feasible to
increase employee count as and when needed to increase revenues. A shift in focus became
necessary and the company’s management decided to enter the product development domain.
The change in focus was necessary because of a flawed assumption. The management felt
that since its employees were familiar with various various technologies, the company had
all the necessary competencies for developing software products. But the products developed
by the company were of poor quality and failed to make an impact with users. Realization
set in that though the competencies were available, they were not at the levels required for
product development. Clearly, a the company’s present approach to defining its competency
requirements could not address the issue of workforce’s competency gaps.
Competency management challenges are likely to surface as organizations grow
and software product requirements become diverse and more complex. This generates a demand for people with a range of skills and abilities, as well as varying
experiences. If workforce competency is not properly aligned with business goals,
it becomes extremely difficult to determine what competencies exist and the ones
which are needed. The result: improper matching of people to job requirements, poor
software product development, and a demotivated workforce.
It is not enough for the project manager to say, “I want a person who can program
java, understand banking business and has 5 years of experience.” This is not likely
24
3 Competency Management
to get the kind of person that the project manager may be looking for. A person may
have spent 5 years in the banking domain maintaining a stable product, but the people
manager may be looking for a person who has programmed several thousand lines of
code and developed products. Hence it is necessary to specify the competency levels
(discussed in the next chapter) that are needed to develop the product. The process by
which the right person is selected must be based on more objective parameters. This
is where quantitative methods become indispensable to competency management
because they present a more objective assessment of what is required and available.
It is a simple matter to tell employees that they do not have enough competencies to become project managers or architects. However, the challenge lies in clearly
explaining what competencies they must possess (or acquire) to become project managers or architects. Managements’ inability to do so, as already mentioned before,
results in employee dissatisfaction and demotivation, the consequences of which are
poor product development, loss of employee, or both. Ultimately, it is the organizational morale that is affected the most. Evidently then, there is a need for a system or
mechanism that clearly reflects business objectives and management expectations,
minimizes subjectivity in decision-making, is fair and empowers the employee to
improve and upgrade his or her competencies.
3.5 Competency Mapping and Tracking
Poor competency management affects the organization at all levels. Expectations in
the IT sector are being continuously redefined because of which the workforce must
constantly upgrade to keep up with technological changes and the market’s demand
for new and better software products and applications.
How can an organization stay ahead of the competency curve to ensure efficient
product delivery and stay relevant and competitive in its business? The answer lies
in identifying critical competencies and incorporating them in all its people management processes (job descriptions, recruitment, training, etc.) and mapping them to
roles. The process of identifying the critical (or key) competencies and mapping to
roles is called Competency Mapping.
Competency mapping is integral to competency management. It creates accurate
and relevant job profiles and aids in setting competency standards with the help of
which companies can make optimal staffing decisions, in recruitment as well as in
the deployment of available people to a project. Competency mapping also helps
to evaluate employee performance and identifying future training and development
needs.
As mentioned earlier, competencies are not static. They change with product
experience and it is necessary that organizations examine competencies regularly
and evaluate them with respect to current and likely future needs. This is done by
Competency Tracking, the process by which individual competencies are assessed
periodically with respect to required skills, their competency gaps and changes are
monitored, and suitable actions are taken to address them.
3.5 Competency Mapping and Tracking
25
The Need for Competency Tracking
A competency tracking system is required for the following reasons:
• It is a business need. IT businesses operate in a continuously changing environment. Customers and users are constantly demanding improved productivity and
efficiencies as well as new applications and services. Workforce competencies
must keep up with the changing needs in such a challenging environment.
• Competency tracking validates—or reveals the shortcomings in—a company’s workforce training and development efforts.
• Competency tracking can help in predicting productivity. A competency management system can assist in matching employee competencies to role requirements
and predict productivity by using information about the number of years of
experience of an employee.
• It helps to keep up with advances in technology, enabling the development
of a wider range of capabilities. New technologies and applications are being
developed—and existing ones rendered obsolete—at a rapid pace. People learn
new technologies, methods, tools, and techniques and tend to lose the focus on
the current competencies. The individual competency capabilities evolve over a
period. IT being a people-intensive industry, competency changes will impact a
company’s business capabilities. So, monitoring competencies is as important to
the organization as financial management.
The VLSI business unit* of a large services organization, which had Japanese customers,
consisted of about 90 employees of whom 30 worked in Analog and Mixed Signal. The other
60 people had competency in the Digital domain. This unit did not have any presence in
physical design; but was keen on entering it. In fact, the organization wanted to exit the analog
and mixed signal domain completely and focus on physical design. But the competency
profile of the company’s employees clearly highlighted their lack of competency in physical
design, the domain which the company was seeking to enter. Hence it was necessary to
identify people from the existing employee pool who were motivated to work in a new area.
Ten people were identified who had some exposure to physical design. These people were
trained in physical design and deployed on new products. In addition, people having competency in analog and digital areas were recruited to fillup the vacancies created. In about
a year, the changes in the competency profile of the workforce became visible as shown in
Fig. 3.2.
Competency mapping and tracking are the drivers of competency management
systems. They provide the means for ensuring that an employee’s competencies are
matched to the job profile, competency gaps are identified, and appropriate training
is provided to reduce competency gaps. They also measure improvements and help
to plan an employee’s career progression in the organization. At the organizational
level, competency mapping and tracking are necessary because they help evaluate
a company’s competitive position and readiness to expand into new domains and
adopt new technologies.
In the IT sector, a quality product and its efficient delivery is a business and
operational imperative. Remaining relevant and competitive is both necessary for a
company’s survival as well as its growth strategy. The first depends on the product
26
3 Competency Management
Number of people
Workforce competency profile
80
70
60
60
40
40
30
20
20
0
2015-2016
2016-2017
Competeny
Analog & Mixed
Digital
Physical
Fig. 3.2 Change in competency profile of a VLSI business unit
team’s competency; the other on organizational knowledge. They are interdependent.
Therefore, competency mapping and tracking are indispensable to a competency
management system.
3.6 Core Competency and Knowledge Management
Organizational core competencies are vital knowledge assets. For this reason, competency management should be treated as an integral and indispensable component
of a company’s knowledge management system (a car is of no use without a steering
mechanism). Like all knowledge assets, core competencies improve with use and
experience. New competencies are developed or built on existing ones. Conversely,
not using them will lead to deterioration of organizational skill sets with adverse
consequences for a businesses’ competitive position.
References
1. Competencies of the Federal Government Information Management Community, Converted to
GCS in 2016.
2. Prahalad and Hamel. (1990). The core competence of the organization. Harvard Business Review,
68(3), 79–91.
3. Grady, R. (1997) Successful Software Process Improvement, Prentice Hall.
4. Bergenhenegouwen, G. J., ten Horn, H. F. K., & Mooijman, E. A. M. (1997). Competence
development—A challenge for human resource professionals: Core competences of organizations as guidelines for the development of employees (vol. 29, no. 2). Emerald: Industrial and
Commercial Training.
5. Grzeda, M. M. (2005). In competence we trust? Addressing conceptual ambiguity. Emerald:
Journal of Management Development, 24(6).
6. Hart, J. (1998). Developing a competency-based performance management system. In Proceedings of the 26th Annual ACM SIGUCCS Conference on User services (pp. 111–113), October
1998.
Chapter 4
Measuring Competency
4.1 Need to Measure Competency
If you don’t know where you are, a map won’t help.
—Watts Humphrey
What is not measured cannot be improved. Much has been said and written about
the importance of measurement for making objective assessments and decisions.
In nearly all organizations, the management expends considerable time and effort
in reviewing and analyzing business performance, so that they can forecast and make
informed decisions. However, only a few companies give the same amount of attention to evaluating the competencies of their workforce, both for current needs and
future requirements. Even among those that do, it is the rare organization that tries to
align employee competencies to business needs in its processes. Inevitably, crucial
people-related decisions are rarelysupported by evidence and objective analysis of
employee competency data. What happens if this is not done?
This inability or failure almost invariably results in businesses not achieving their
goals for which it is convenient to blame the “non-performing employees” who are
then considered as liabilities. Heads will roll, and new people with “better” qualifications will be brought in. This happens routinely in the IT sector. Managements
tend to overlook the fact that to a considerable extent, a lack of understanding of the
company’s competency needs and objective review of employee competency, and
workforce planning is responsible for poor employee performance.
It can never be overstated that workforce competency is a core driver of organizational growth. People are at the forefront in the IT business, whether it is product
development or product implementation. Typically, product development or product
implementation is done by teams consisting of groups of individuals with specific
competencies that are brought together to produce the work required and deliver
products and services to agreed standards. Obviously, shortcomings in competency
will have an adverse effect on work quality with potential consequences to the bottom
line and the business.
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_4
27
28
4 Measuring Competency
Earlier in this chapter, we made a brief mention of the need for “objective assessment” of competency. The word “objective” was used intentionally to stress on the
need for evidence of competency or its “measurement” which managements must
perform to gather evidence for making decisons. Thus, “measuring” competencies
becomes integral to people management processes. But what do we mean by “measurement” of competency?
Usually, competencies are “measured” during the employee’s performance
appraisal, or periodically as specified in the organization’s performance management
processes. Typically, the employee first self-assesses his/her competencies following
a set of guidelines issued by HR. The self-assessment is then reviewed by the people
manager. At this stage, the employees’ value addition to the organization’s business,
personal growth, etc., are discussed. Both sides try to reach an agreement on the
outcome of assessment. In the event of a disagreement between the employee and
manager, or the assessment delivers extreme results (for example, outstanding or
poor) the appraisal goes through a moderation process. The primary purpose of the
moderation is to eliminate the possibility of bias and review the assessments from
a neutral position. This approach to employee appraisal, although in near-universal
use, has a few shortcomings:
• It leans heavily toward appraisal of employee performance with little stress on
product-related competency needs.
• It does not take a long-term objective view of employee competency development
and career path with respect to organizational needs.
It is necessary to “measure” competencies to make objective and evidence-driven
decisions on staffing, competency development, career planning, and succession
planning in the organization. One of the core driving factors in any organization
is the competency of its workforce, which helps teams to work toward achieving
assigned targets. For this reason, it is important for management to determine which
competencies are critical to accomplishing the goals, and to what extent these competencies have contributed to it.
Equally important for management is to identify competency deficits that have
affected—or have the potential to impact—business performance. To enable objective assessment, they would need to find ways to quantify them or, in other words,
“measure” them.
To be fair, there are organizations that effectively leverage the competencies of
their workforce and plan well for future needs. But there are also many organizations having capable people but are unable to deliver to expectations. For various
reasons, ranging from lack of vision to fear of failure to poor strategy planning there
is a reluctance to exploit workforce potential optimally.
Imagine a high-performance car of, say, 3-litre engine capacity, which is being used by its
cautious owner to just drive around the neighborhood at a low speed. It is obvious that the car
is being under-utilized. No employer would want to be like the car-owner in this example.
How can one tell if an organization is under- or overutilizing its people? One
clear sign is a demotivated workforce with many employees voicing their frustration
4.1 Need to Measure Competency
29
that they are not given enough work or are being assigned work for which they do
not have the required skills. Demotivation of employees usually results in sub-par
business performance as well as high workforce attrition. Most companies in this
situation are in a perpetual firefighting mode to motivate and retain their employees.
How can one be sure that employees are being optimally utilized? One way is to
understand the value that each employee brings to his/her role. This is not possible
without knowing employee competencies and their importance to the jobs that they
are expected to perform. Without this knowledge, one cannot assess whether these
competencies are being utilized appropriately or not.
A classic—and an all too common—example of underutilization is one that the
author was once a witness to. A graduate from a top management school was
placed in an operational role in the organization he was working in. Everyone
agreed that the person would be a better fit in a strategic function, but no one
quite knew why he was given his present role. To make matters more complicated, no one was ready to spend the time in determining an optimal fit for the
employee.
An 800-employee-strong product unit was not able to deliver products at the
rate at which management expected despite having several senior people in
the unit. Team analysis showed that the unit had only 100 programmers, which
was not sufficient to meet the requirements of productivity and output. Another
40 were involved in testing. In other words, only 140 employees (12.5% of
the workforce) were making a direct contribution to the product. Most of the
remaining worked in sales and marketing, management, and various support
functions. There were several managers, who were senior and sufficiently experienced to manage a product team, in insignificant roles. They were rendered
unproductive by being assigned roles that did not match their capabilities.
The wrong people were assigned to roles. There was a little value addition
from several people in the unit, but the costs were increasing. It was a clear
indication that there was gross mismanagement of people capabilities.
Today’s market dynamics are presenting businesses with a constant challenge:
to survive, they must evolve and respond quickly to the ever-changing business
and technology situation. Thus, the ability of a businesses to compete is severely
constrained if the capabilities of its workforce remained static or are underutilized.
It is essential to nurture employees so that they can give their best; but at the same
time, they must also understand they must always strive to add value to their work,
as well as take the ownership for developing new skills and improving existing
ones to help their company to face business challenges. Therefore, regardless of the
perspective—employer or employee’s—with which one may choose to look at the
issue, it is competency management that is central to the optimal utilization of people.
30
4 Measuring Competency
Making people-related decisions is usually a straightforward process in a small
company with few employees, and a small number of products without much variety. Decisions are usually taken by one person or a small group. But it gets harder
as organizations grow. As business portfolios become more diverse and complex,
the number of employees in an organization will also increase. In such situations,
management and people managers can no longer rely on their personal knowledge
of employee capabilities, “gut-feel” or educated guesswork.
We know that the quality of software is heavily dependent on the quality of
the people who develop it and the software development process that they have
adopted. Most importantly, it is a team effort. Each member of a product team member
possesses a set of competencies necessary for executing the product to the complete
satisfaction of the customer. Thus, in a team comprising a product manager, people
manager, technical manager, designer, programmer, tester, build and release engineer,
each role calls for a set of competencies which, when brought together, will determine
the product team’s competency to deliver a quality product.
This is not to say that companies do not measure competencies. All companies,
whether they are big or small, have some ways of assessing the competencies of their
employees. However, the important question here is whether the right indicators of
competency—as well as their relative importance—for a role have been identified
and clearly communicated to all levels.
To be able to lend themselves to measurement, and communication of their
requirements to all stakeholders in a company, competencies must be
•
•
•
•
Clearly Definable
Understandable
Observable
Measurable
All critical competencies must possess these characteristics because only then
will employees have a clear idea of what is required of them to perform in their
roles, and where they stand with respect to the required competencies. With the right
methods and metrics, management can identify employees who may be lagging and
then provide the necessary training to improve their competency (or competencies),
as well as nurture those who have the potential to advance in their jobs.
Companies need to take an objective approach while representing and assessing
competencies at individual, product team, and organization levels. This helps in various ways helping an individual, team, or the organization to understand present capabilities with respect to what is required for the desired position; and assisting decisionmaking for matching the right person from a pool of employees to the role. The Role
Competency matrix, which is explained in the next chapter, provides a versatile and
effective framework for this purpose. But before discussing RCM in detail, let us
understand how organizations view and assess competencies. For this, it is necessary
4.1 Need to Measure Competency
31
to have a proper understanding of the terms competency level, competency index, and
competency gap. These are the indicators used for developing a Role Competency
Matrix at both employee and organization level.
4.2 Representing Competencies
As mentioned earlier also, competencies are the major drivers of organizational
growth. They are critical to the realization of organizational vision and mission
objectives. The core competency of an organization, which is a set of skills and
capabilities brought together for a specific purpose, sets it apart from its competitors.
It is this core competency which gives the company a strategic advantage. From
a people perspective, core competency is leveraging competencies present in the
workforce. Let us now see how competencies can be represented.
Organizations present their companies in various ways, which range from brief
statements of capabilities to detailed descriptions. Typically, they share information
about the number of people working with them and their total experience. Some
organizations may prefer to mention the number of people working with them who
have a certain competency. Is this enough? Does it present a reasonably accurate
picture of organizational competencies? To understand this better, let us consider an
example in the box.
Here, we will discuss with the help of the example of an 800-employee unit,
the one we briefly spoke aboutin the previous section.
Of the 800, only 140 employees (12.5% of the workforce) were making a
direct contribution to the product by designing and developing it. Another 80
employees (10% of the workforce) were working in sales and marketing, 220
(27.5%) in the product implementation team, and the remaining 50% were
managers.
What do the numbers represent? What should the management make of the
information?
50% of the workforce is at a managerial position, as compared to 40% which
is developing or implementing the product. Thus, on average, there are 1.25
managers for every team member. This clearly indicates the skewed ratio of
manager to team member. Besides appearing “top-heavy”, it was also a clear
indication that the organization was not utilizing the managers appropriately.
Presented with this information, the management was faced with a tough
challenge: What do we do with these managers?
The management decided that the managers would be used for developing new
products, business expansion, and growth. The question that followed was:
Which products, which roles? One practical approach was to identify competencies based on the roles the managers performed earlier (prior to working in
32
4 Measuring Competency
their present jobs). These could include sales, program management, domain
consultants, etc. It was found that 20% of these managers could be put on new
product development because they had the domain knowledge. The rest were
deployed in sales and marketing, in which they had experience. This helped
the organization to grow faster than it would have.
Here, representing workforce competencies by roles or experience was not
enough. It became obvious to the company’s leadership that the competencies
possessed by these managers need to be assessed before they were placed in
suitable roles.
Depending on the maturity level of an organization, and its requirements, competencies are represented in the following ways:
The representation shown in Fig. 4.1 is the simplest and most commonly used format
for presenting the competency profile of the workforce. It shows the percentage of
employees working in various functions and roles.
This representation has a major limitation: It only tells us what proportion of the
workforce is employed in which functions within the organization. As we can see,
this is a one-dimensional representation. It does not tell much about these roles; it
also does not show what competencies are present in the workforce. The information
is not useful for making staffing decisions or developing job profiles, such as, say,
that of a programmer/tester. As we have seen earlier, competency management must
focus on the employee’s ability to perform a given task to clearly defined standards.
Therefore, this representation of the model fails to fulfill the purpose of helping in the
recruitment of expert programmers or testers, decision making regarding staffing, or
planning career progression of employees. At best, it provides information of general
interest and may be useful for annual financial reports, or supplementing marketing
efforts with information about workforce capabilities.
The representation in Fig. 4.2 shows the competency profile of the organization as
the proportion of the technical staff in a company, who have a certain competency.
Here, it is clear that the organization has a large percentage of employees who
Fig. 4.1 Competency profile
4.2 Representing Competencies
33
Fig. 4.2 Competency profile of an organization by role (the example in the figure is of programmers)
Fig. 4.3 Competency profile for a role, competency, and corresponding level
are competent in java. Although it provides more information about workforce
competency than the representation in Fig. 4.1, the model does not indicate the level
of expertise of the employees. It is not clear whether, for example, an employeeshown
to have competency in java is fresh out of college, or is at an intermediate level
with some product experience, or an expert with several years of experience. Such
information can be a crucial factor in a client’s decision to award work to the company.
Within the organization, lack of such information on expertise levels might affect
strategy planning.
The representation in Fig. 4.3 gives us more competency information than in Figs. 4.1
and 4.2. It shows the competency levels of the employees (the proportion of employees at at various levels of competency). In this example, the levels have been defined
as basic, intermediate, or expert. It is obvious that the company has given considerable thought while presenting competency information. Such information would be
helpful in taking more informed competency-related decisions.
Figure 4.3 is a much-improved way of representing the competencies present in the
organization because it gives managers and decision-makers a better understanding
of strengths (and limitations) vis-à-vis competencies. However, this method will have
limited use if the competency levels for each role are not clearly specified. Specifying
competency levels is necessary to help team members understand how well, or
otherwise, they are matched to their present roles, and their respective competency
gaps.
34
4 Measuring Competency
4.3 Competency Levels
Competency level, or Competency proficiency scale as it is also sometimes known
as, provides a measure of an employee’s suitability, with respect to competency, for
a job. The scale captures a wide range of abilities in competency and organizes them
into four (or sometimes five) levels—from “Basic Awareness—Trained (Level 1)”
to “Expert (Level 4)”. Some companies prefer to represent competency levels on a
percentage scale. A 0% competency level shows that an employee does not have the
required competency (or has no prior knowledge), while an expert will be rated at
100%. For ease of classification, the competency levels are specified in intervals of
10%, 20% or 25%.
Irrespective of the type of scale used, an essential requirement is to clearly specify
the levels so that they understood without ambiguity by everyone in the organization’s
hierarchy. The scale must be understood by all, leaving little or no room for a subjective interpretation. This is necessary to assess, monitor, and report on employee
competency. Clear, unambiguous definitions are fundamental to any competency
management system that a company will implement. The level of detail required can
vary between organizations and their specific requirements.
Identifying competencies and assigning them the levels appropriate for a role is
the first step to developing an objective competency management system. Therefore,
it is imperative for senior management to clearly state the business goals of the
organization and the expectations of the competencies needed to achieve them. This
requires proper explanation of the competency characteristics for each level to help
employees understand where they stand with respect to desired levels for a given
role profile.
4.3.1 Defining Competency Levels
Competency levels are usually qualitative characteristics and presenting them on a
quantitative scale can be a challenge. However, it can be done by following certain
guidelines and maintaining a consistent approach. It may seem tedious work for
companies doing it for the first time. There will be disagreements among employees
because of diverging perceptions but these must be reconciled. There will also be fear
over the outcomes of assessment (no salary revisions, loss of incentives, uncertainty
over career prospects, and even loss of job). The apprehensions must be addressed
directly and in a fair and transparent manner. Therefore, the first step toward ensuring
objectivity is to clearly define and specify each competency level. Here, we will be
discussing a general approach to defining competency levels.1
It is always preferable to begin with simple definitions and build upon those.
1 The
terminology used here is representational. Different organizations may adopt different ways
of defining competencies.
4.3 Competency Levels
35
Table 4.1 Classifying competency levels
Competency level
Description
Level 1
Trained
Level 2
Experienced
Level 3
Expert
Level 4
Master
I. Begin with a simple classification of competency levels (Table 4.1).
Clearly, this classification is not enough for role-specific competency requirements. For example, trained (Level 1) may sound ambiguous. What could “Trained”
mean? It could mean that a person may have learnt C Programming while in college or after a course, but may have no programming experience. It could also mean
that the person last programmed in “C” about 5 years ago. Thus, more clarity is
needed. One way of explaining each level is shown in Table 4.2.
Table 4.2 elaborates on these definitions to provide more clarity on competency
levels, but one can see that there is still a significantly subjective component in the
descriptions. For example, it does not tell us whether the basic-level training should
be of 4- or 6-weeks’ duration, and how much programming an employee should have
done (as measured by the number of lines of code).
The competency definitions are made more specific in Table 4.3. This level of
detail is necessary in many organizations because of the need to match the employees’
skills and experience with product requirements.
With the help of the competency specifications in Table 4.3, we can specify the
competency levels for .NET, which is presented in Table 4.4.
The competencies described above are those required for a product development
team. Deployment and Implementation of the product (for example, ERP, SCM,
Table 4.2 Defining competency levels
Competency level
Description
Level 1: Trained
Includes employees who have received in-house basic-level training in
software engineering and have done programming in C
Level 2: Experienced
Includes Employees who have received in-house basic-level training in
software engineering and have 3 years’ programming experience in C
of which at 2 years must be in the immediate past
Level 3: Expert
Includes employees who have received in-house basic-level training in
software engineering and have done programming in C for at least
5 years in the past 6 years. Have worked on large-scale systems for a
minimum of 2 years
Level 4: Master
Includes employees who have received in-house basic-level training in
software engineering and have done programming in C for at least
5 years in the past 6. Must have worked on large-scale systems for a
minimum of 2 years. Should have trained people
36
4 Measuring Competency
Table 4.3 Specification of competency levels
Competency level
Description
Level 1: Trained
• Should have completed 4 weeks of in-house basic-level training in
software engineering
• Should have programming experience of at least 2 months, a
program size of 1,000 LOC
Level 2: Experienced
• Should have completed 4 weeks of in-house basic-level training in
software engineering
• Should have programming experience of at least 2 years, a program
size of 10,000 LOC
Level 3: Expert
• Should have completed 4 weeks of in-house basic-level training in
software engineering
• Should have programming experience of at least 5 years, a program
size of 500,000 LOC
• Should have worked on large-scale systems (2 million LOC) for at
least 2 years
Level 4: Master
• Should have completed 4 weeks of in-house basic-level training in
software engineering
• Should have programmed in C for at least 5 years during the past
6 years with minimum program size 500,000 LOC
• Should have trained/groomed at least 10 people
Table 4.4 Specifications for.NET competency
Competency level
Description
Level 1: Trained
• Must have knowledge of .NET
• Has undergone classroom training of at least 40 hrs
• Has programming experience of 2000 LOC in .NET
Level 2: Experienced
• Has worked on .NET project for at least 2 years
• Has worked on advanced features of .NET for 1 year
• The defect density of programming must be >=1 critical defects/FP.
These defects are identified in the testing phase or review phase
• Has developed 2 end-point security features
Level 3: Expert
• Has worked on .NET project for a minimum of 4 years
• Has worked on advanced features of .NET for 2 years
• The defect density of the programming is <=1 critical defect/FP.
These defects are identified in the testing phase or review phase
• Must have mentored at least 4 programmers
Level 4: Master
• Architects the end-point security software using .NET
CRM) call for a different set of competencies. This is because the activities and
tasks performed by implementation teams are different from that of product development. Typically, the product implementation team is responsible for installing,
configuring and deploying the product in an organization. In addition, it also trains
users in the proper use of the product. They are responsible for understanding the
organization processes and needs so that they can configure the system appropriately.
4.3 Competency Levels
37
Table 4.5 Definition of competency levels for product deployment team
Competency level
Description
Level 1: Trained
Has completed a certified foundation training in the product
Has experience in at least 1 product deployment as a team member
Level 2: Experienced
Has completed an intermediate product certification course
Has basic product troubleshooting skills
Has completed 5 product deployments as a team member
Level 3: Expert
Has completed advanced training in the product and been certified
Has advanced skills in troubleshooting
Has completed 10 deployments as a team member
Has an ability to develop deployment architecture solutions for small
deployments
Level 4: Master
Has the ability to develop solution deployment architecture solution for
large deployments
Has the ability to mentor other solution architects
A sample competency definition for a product implementation team is shown in
Table 4.5.
Competency levels for other skills can be specified in a similar manner. One can
specify a competency in as much detail as possible. But at the same time, one must
balance business needs with realistic expectations. Too much detail can become cumbersome and make the task of matching competencies to role profile more complex
and difficult. One rule of thumb is to use, as much as possible, quantifiable indicators
while specifying competencies such as, for example, number of years’ experience,
certifications, size of products, defect density, etc.
4.4 Competency Index
Competency Index (CI) is the measure of the degree to which an employees’ competencies are aligned to his (or her) role. Competency Index of an organization is the
measure of the degree to which its core competency is aligned to its business objectives. Competency Index is represented as a numerical value. At the organizational or
business unit level, the Competency Index shows how well people competencies are
matched to their roles. It is a measure of an employee’s (or workforce) competency
at a given time. Measured over time, competency index can be a useful indicator
of changes in competencies, or their stagnation. Competency index can also be an
indicator of the strength of the workforce’s intellectual capital.
CI can take any value between 0 and 1. A CI of 0 indicates that the employee does
not have the competencies required for the role he or she is in (or being considered
for). A CI of 0 for an organization indicates it does not have the competencies required
for the business it is in. A CI value of 1 indicates that the employee (or organization)
completely fulfills all competency requirements for the role (or business). In an
38
4 Measuring Competency
organizational context, a CI value of 1 indicates that it is ideally placed to grow its
business around its core competency.
Obviously, an ideal state does not exist. The value of CI, for an employee or
organization, will lie between 0 and 1. Closer the CI is to 1, the more comfortably
an individual or company is placed with respect to the required competencies. One
must also not forget that competency index is primarily an indicator of the intellectual
capital which the employee brings to the role. It is not an absolute value with which
people’s capabilities and performance can be compared. Every individual has a set of
competencies that are unique to the person. What is essential, however, is to leverage
these competencies by using them in the roles that require them most. Roles are
also specific to organizational needs. Expectations of performance in a role at one
organization will not be the same in another. For example, in some companies,
the project manager is also responsible for people management. In others, the two
functions are handled by different managers. Thus, competency index cannot be used
as an absolute value for comparisons. It only shows how competent an individual is
for performing a given role in the organization.
4.4.1 Employee Competency Index
Let us understand the math for calculating CI. For an employee, the competency
Index (CI) is computed from the following expression:
p
CL
CIER =
× (C W ) j ,
(4.1)
4 j
j=1
where
CIER is the competency index of an employee for the given role
C L is the competency level of an individual. CL can take any discrete value between
1 (for L1) and 4 (L4).
C W is the competency weight, which reflects the relative importance of a given
competency to the role. Its value will lie between 0–1. The sum of weights of the
competencies specified for a role should be 1
p is the number of competencies. If we have 7 competencies for a role, then the value
of p will be 7.
The competency index of a programmer in a product team is specific to the competency needed for a particular role in the product team. For example, Karthik is a
senior Java programmer with 10 years’ experience of working in complex products.
He is assigned to a relatively simple web-based product for which a programmer with
5-years’ experience is enough. Here, Karthik’s competency index will be higher than
what is required for this product. However, if there is another product which requires
a programmer to have at least fifteen years’ experience, Karthik’s competency index
4.4 Competency Index
39
will be less than what is required. But in both cases, the competency index gives
management the information needed to take a decision—whether to deploy a lessexperienced person to the product in the first case, or to arrange suitable training to
upgrade Karthik’s competency in the second. With this information, and considering
the value and significance of the project, management can take an informed decision
about assigning Karthik to a product team.
The computation of competency index and its significance is explained with the
help of the following example.
In one organization, the senior management is concerned over frequent postponement of
delivery dates and poor-quality software. It was felt that the issue required closer examination.
For discussion, we will assume that the organization has well-defined product planning and
development processes. One area that the management wanted to address was the need
for a project manager. This was understandable because it is the product teams which are
responsible for delivery and quality. It was necessary to select a person who would have
overall responsibility for the execution of the company’s projects.
Two experienced project managers—Ravi and Vaibhav—are short-listed for the role. Both
are highly-regarded project managers in the company. The management must decide on who
is the better fit for project manager. To make the selection process free of bias, and to help
in making an objective, evidence-based choice, the task was given to a consultant.
The consultant’s first task was to identify the competencies required for the project manager’s
role. Since competency in project management is a must for a project manager, the consultant
identified this as a core competency. Most of the company’s projects were using .NET, Java
and PostgreSQL. Therefore, it was expected that the project managers would be familiar
with those competencies, which were thus identified as the key competencies.
The initial assessment
First, the competency levels for the role were defined with the help of which the
consultant assessed the competencies of both candidates. Ravi’s competency levels
were found to be 2, 3, 1 and 2, for project management, Java, .NET, and PostgreSQL,
respectively. For Vaibhav, it was 0, 4, 2, and 3 for project management, Java, .NET,
and PostgreSQL, respectively.
Will the averages of the competency levels of Ravi and Vaibhav provide a reliable
indication of each person’s suitability for the role? Let us discuss further.
The limitations of simple average method
The average values of the competency levels of Ravi and Vaibhav are 2 and 2.25,
respectively. Comparing the two project managers on the basis of the average of the
respective competency levels did not address the main question: Who is the better
fit as the project manager? The average scores indicated that Vaibhav is a better fit
than Ravi for the product manager’s role. Moreover, the values were too close to
each other to give a clear indication of who is better suited for the role. It became
necessary to go into more detail.
The decision
Averaging assumes that all competencies are equally significant. In this example, Vaibhav had better competencies in Java than in project management, while
40
4 Measuring Competency
Table 4.6 Calculation of weighted competency index
Employee
Ravi
Role
Project
manager
For Ravi
Competency
CEL
(CEL /4)
CW
(CEL /4) * CW
Project management
2
0.5
0.44
0.22
Java
3
0.75
0.22
0.165
.NET
1
0.25
0.22
0.055
PostgreSQL
2
0.5
0.11
0.055
CI (Ravi, Project manager)
Employee
0.495
Vaibhav
Role
Project
manager
For Vaibhav
Competency
C EL
(C EL /4)
CW
(C EL /4) * C W
Project management
0
0
0.44
0
Java
4
1
0.22
0.22
.NET
2
0.5
0.22
0.11
PostgreSQL
3
0. 75
0.11
0.08
CI (Vaibhav, Project manager)
0.41
Ravi scored higher than Vaibhav in project management. For a project manager’s
role, competency in project management is a more crucial requirement than competency in java. However, for a programmer’s role, competency in Java is more
important than project management. Therefore, the consultant reasoned, the competencies needed to be given suitable “weights” to indicate their relative significance
to the role. Thus, each competency was given a weighted value which showed how
important it was to the role in question. The weights are provided in the range of 0
to 1, ensuring that the sum of the weights of the various competencies specified for
a role is equal to 1.
The
results
of
the
consultant’s
analysis
are
presented
in
Table
4.6.
Ravi’s
CI
was
found
to
be
0.495
and
Vaibhav’s CI is 0.41. It was seen that though Vaibhav was better qualified
technically, Ravi was superior in project management competencies, which carried
more weight.
Based on the results of the analysis, it was decided that Ravi was the better choice
for product development.
Vaibhav was deputed to a project management training program and was provided
mentoring support. The decision also aligned with Vaibhav’s interest in project management.
The competency index shown in Table 4.6 was calculated using Eq. 4.1.
To explain how the analysis was done,
4.4 Competency Index
41
• Ravi’s competency level is 2 in project management, which means his employee
competency level (C EL ) = 2.
• Since the organization has defined four competency levels, the ratio of employee
competency level is (C EL / 4) = 2/4 = 0.5.
• The weight given to each competency indicates how significant that competency
is for the role in question. In this case, competency weight (CW ) for “Project
management” is 0.44.
• Thus, the competency index of Ravi for “project management” competency is
computed as (C EL / 4) * C W = 0.5 * 0.44 = 0.22.
• Similarly, the index for the other competencies were computed as shown in
Table 4.6. The average of the products of the competency level of employee and
the corresponding weight is the competency index.
As we can see, competency index is a useful metric for assessing competencies
and weighing them against the needs for a specific role. CI also helps to identify
the skills and abilities that need improvement or upgrading. It guides management
in planning and investing in targeted employee training and development initiatives,
thereby optimizing costs and training outcomes. In this way, CI helps employees
to align themselves with the mission and vision of the organization, and to identify
needed workplace behaviors so that they can self-direct and develop professionally.
Nevertheless, a note of caution in the use of CI is also necessary. As mentioned
earlier, the Competency Index of an employee is specific to the role that he (or) she
is in or being considered for, or is presently in. The CI value for one role should not
be used to evaluate a person’s suitability for another. To use CI values as absolute
for comparing employees is not only unfair and demotivating, it can also lead to
inappropriate people decisions. The analysis of CI in this example was for the role
of project manager the result of which showed that Ravi was the better fit. This does
not mean that Vaibhav was not competent. As we can see, he scored better than Ravi
at programming. It is quite possible that Vaibhav is a good fit for technical lead’s
role.
4.4.2 Workforce Competency Index
Having understood the meaning and value of an individual’s competency index,
we will now see how competency index of all employees reflect on organizational
workforce competency.
People are the biggest assets in the IT Industry. No one would want to dispute this
statement. However, often, the need to continually improve and upgrade their capabilities does not receive the same attention as that given to financial performance and
the balance sheet. It is the employees who, by applying their competencies to their
jobs and working together, deliver products which generate revenues for the company. However, discussions at the senior level are mostly focused on organizational
42
4 Measuring Competency
performance in terms of revenues and costs, largely overlooking the major contributors to business success—the employees.
Competencies that have contributed to—or whose shortcomings that hindered—business growth are rarely discussed in detail. Many companies still tend
to view competency information in terms of the number of people required in a specific domain or business unit. Rarely is there a structured review of the quality of
people needed to perform a task.
One question that might arise at this point is, can we measure competencies to
show whether these are relevant to the needs and that they are improving or declining?
The answer is yes. Workforce competency index is designed specifically to address
this point. Organizations must always be aware of their competency needs. They must
also know whether they have them or must develop the competencies necessary to
deliver products or acquire them and grow their business. Workforce competency
index can inform management whether the business is poised for growth are heading
toward stagnation.
Because of their singular focus on revenue growth, companies tend to place too
much stress on immediate or short-term actions, such as increasing employee headcount to handle more work. Enough consideration is not given to the competency
aspect. This is a short-sighted view. Although products will be delivered, and revenue
will grow, in the medium to long-term, there are high chances of a negative impact
on product and service quality, which will have an adverse impact on the business.
Therefore, it is necessary for organizations to monitor competency changes at all
levels so that they can proactively respond to the needs and situations.
Infra services is a services company which was established to provide IT infrastructure services. For several years, people were recruited with expertise in infrastructure management.
However, as demand grew for cloud computing and infrastructure automation and machine
learning, Infra services realized that its current competencies were not suited to the changing market conditions. Organizational focus needed a shift. But first, it had to understand its
present position with respect to the competencies that were necessary to offer the products
and services that were in demand. In such situations, workforce competency index will be a
useful indicator of organizational capabilities.
There was no doubt that Infra services had to realign its product and service offerings to
achieve business objectives and retain people. Thus, the management initiated competency
development activities in new domains like cloud computing. But it was also necessary
for Infra services to develop a metric that would indicate whether the competencies of the
workforce were increasing, and whether the organization was in a position to do business
in new domains and technologies. The metric also had to help management to understand if
their investment in competency development is providing expected results or whether there
is a need for course correction.
Computing workforce competency index
Workforce Competency index is the arithmetic mean of the competency index values
of all the employees for a given role in a business unit or organization, and determined
by using the following expression:
4.4 Competency Index
43
n
CI =
i=1
p
j=1
CL
4
j
× (C W ) j
n
(4.2)
where
C L is competency level of an individual for a given role, which is rated on a scale of
1(L1)–4(L4)
C W is the competency weight, which reflects the relative importance of a given
competency to the role.
p is the number of competencies
n is the number of employees.
Using the example of Ravi and Vaibhav, the workforce competency index for
project managers in the network security software development unit is computed
and shown in Table 4.7.
Obviously, higher average employee CI would reflect in higher organizational or
business unit-level workforce competency index. Organizational CI helps in identifying groups that are potentially superior performers, or whose competencies need
improvement. It also helps in the analysis of competencies which the management
might consider as vital for planning appropriate strategies for training and development.
Over time, workforce competency index will indicate how workforce competencies are changing with respect to business requirements, and at what rate. A stagnant
or declining competency index should be a cause for concern as it may point to competencies that require improvement. On the other hand, an increase in workforce CI
may give a reassuring signal to the management about the adequacy of workforce
competency. In a best-case scenario, the workforce CI will have a direct correlation
with business performance.2
In situations where the competency index shows an increasing trend, but business performance is stagnating or deteriorating, there is a likelihood of the presence of organizational issues that call for attention. These issues could be related
to organizational strategy, processes, and practices. There is also a possibility that
the competency framework requires review. Therefore, organizational CI should not
Table 4.7 Workforce competency index of project manager
Competency index
CI (Ravi, Project manager)
0.495
CI (Vaibhav, Project manager)
0.41
CI (Workforce, Project manager)
0.45
2 The
Malcolm Baldrige model consists of practices which impact business results. These include
leadership, strategic planning, customer and market focus, human resource focus, and process
management.
44
4 Measuring Competency
be seen as a standalone metric; it should be used along with other key parameters of
business performance.
Organizational competency index also helps in other ways. Many IT companies
recruit fresh graduates in product development teams to keep costs low. However,
the absence of a proper balance between experience and fresh graduates may not be a
desirable state. In such situations, workforce competency index can give management
a reliable indication of the effect of fresh recruits.
In organizations that have a strong focus on aligning competency development
to business goals, their competency index will show an increasing trend. Organizational competency index will change only if individuals develop competencies that
are aligned to business needs. For example, if an employee working in a banking
business unit is improving or developing competency in the insurance domain, the
workforce competency index of the banking unit will not improve. However, if the
same employee is reassigned to the insurance business unit, the workforce competency index of the unit to which he is reassigned will increase. Thus, organizational
competency index can reflect the extent of alignment of employees’ competency
development to business objectives.
A stagnating trend in business unit competency index is indicated by a flattening
of the competency curve (as shown in Fig. 4.4). This should be regarded as a signal to
the management that they must respond appropriately—through a review of business
objectives, investments in employee development, etc.
The value of competency index tells us about the strengths of an employee as
measured against organizational need. Employees will always welcome feedback
about their value to the company. It is the responsibility of the organization to ensure
that the competencies are properly matched with roles or arrange for suitable training
if there is a significant competency gap. As explained earlier, competencies cannot be
allowed to remain stagnant or decline because they have an adverse effect on business
growth. Constant monitoring of workforce CI will indicate whether the company’s
competencies are showing an increasing or decreasing trend.
Workforce competency index is a reliable indicator of the positive or negative
impact of people-related actions, such as hiring, competency development programs,
Business unit competency index
0.6
0.4
0.2
0
2016- 2016- 2016- 2016- 2017- 2017- 2017- 2017Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Banking BU
Fig. 4.4 Monitoring of competency index in a business unit (The example is of a banking business
unit)
4.4 Competency Index
45
and attrition. The competency gap is the difference between the workforce CI required
for a role and the current workforce CI.
In a recent seminar, the CEO of one of the largest Indian IT companies mentioned that it is becoming increasingly difficult to train senior and mid-level
managers. The reason is largely because of a lack of organizational vision and
support, necessary for building leaders at senior and mid-levels. A look at how
the situation evolved would be useful in understanding the issue. When India’s
IT sector began to take wings over 20 years ago, programmers were pushed into
managerial positions to meet shortages at this level. In a short while, many outstanding programmers became projects leads, project managers and program
managers.
It was only later that organizations realized that the programmers who became
managers did not have the competencies to perform in their new roles, and
especially so in the rapidly changing business environment. Both individual
and organizational performance was being affected. The obvious question at
this point is who should take the blame for the situation—the management
which placed these employees in senior positions, or the employees who did
not perform? Much of the mismatch between organizational and employee
expectations could have been avoided, had organizations paid more attention to
competency management. Regular monitoring of competency index and gaps
would have assisted management to proactively address such issues before
they reached a crisis point.
4.5 Competency Gap
Knowing the competency index of employees, the next step would be to determine if
the existing competency levels of an employee—as indicated by his or her CI—meets
the competency requirements of a given role. This is done by measuring the Competency Gap.
Competency Gap (δCI) is the measure of the gap between the required competencies for a role and the competencies that a business unit/individual possesses.
The Competency Gap (δCI) is the basis for designing training and development
activities, recruitment decisions, staffing, and reallocation of employees to specific
roles. The input information needed to measure Competency Gap (δCI) are current
employee competencies, competencies required for the role, and the “weight” (or
relative significance) of each role.
46
4 Measuring Competency
4.5.1 Employee Competency Gap
The competency gap, δCI, of an employee for a role is calculated from Equation 4.3.
δCIER =
p CEL − CRL
j=1
4
∗ (C W ) j ,
(4.3)
where
C EL is the competency level of an employee, which is rated on a scale of 1(L1)–4(L4).
C RL is required competency level for a role, which is rated on a scale of 1(L1)–4(L4).
C W is the competency weight.
p is the number of competencies. If we have 7 competencies for a role, then the value
of p will be “7”.
The employee competency gap can vary from “−1” to “1”.
To evaluate the competency gaps of Ravi and Vaibhav for the project manager’s
role, the competency gaps are represented as follows (Table 4.8).
For an employee, the competency gap helps him/her to understand what is necessary to perform at a higher level and specifically, what competencies must be developed for outstanding performance at the role. Subjective assessments are kept to a
minimum and the organization gains a quantitative approximation of the employee’s
fitment and potential within the company. Determining existing competency gaps—and addressing them proactively—allows businesses to focus on the areas that
Table 4.8 Computation of competency gap for project manager role
Employee
Ravi
Competency
C EL
C RL
Role
CEL −CRL
4
Project manager
CEL −CRL
CW
∗ (C W )
4
Project management
2
3
−0.25
0.44
Java
3
2
0.25
0.22
0.055
.NET
1
2
−0.25
0.22
−0.055
PostgreSQL
2
2
0
0.11
δCI (Ravi, Project manager)
−0.11
0
−0.11
Employee
Vaibhav
Role
Competency
C EL
C RL
CEL −CRL
4
Project manager
CEL −CRL
CW
∗ (C W )
4
Project management
0
3
−0.75
0.44
Java
2
2
0
0.22
.NET
1
2
−0.25
0.22
PostgreSQL
2
2
0
0.11
δCI (Vaibhav, Project manager)
−0.33
0
−0.055
0
−0.385
4.5 Competency Gap
47
Table 4.9 Representation of workforce competency gap for a competenccy
Competency
Project management
Employee
C EL
C RL
δCL(ER)
Ravi
2
3
−0.125
Vaibhav
0
3
−0.375
δCL (Workforce, Project management)
−0.5
are most likely to impact business performance, profitability and growth potential,
employee engagement and retention.
4.5.2 Workforce Competency Gap
Workforce competency gaps can be determined for a single competency or at organizational level. It is the competency gap of a team in a specific competency. It is
calculated using Eq. 4.4.
n CEL −CRL
δCL =
4
i=1
i
n
(4.4)
where
C EL is competency level of an employee, which is rated on a scale of 1(L1)–4(L4).
C RL is required competency level for a role, which is rated on a scale of 1(L1)–4(L4).
n is the number of employees.
The computation of workforce competency gap for Project Management is shown
in Table 4.9.
At organization level, the Competency Gap (δCI) for a role is computed using
Equation 4.5,
p n
CEL −CRL
∗ (C W ) j
4
δCI =
i=1
j=1
n
(4.5)
where
C EL is Employee competency level, which is rated on a scale of 1(L1)–4(L4).
C RL is required competency level, which is rated on a scale of 1(L1)–4(L4).
C W is the competency weight.
p is the number of competencies.
n is the number of employees in the project/organization.
A product company, which has plans to enter new domains or adopt new technologies, would need the competencies (or bridge the existing competency gaps) to
achieve its objectives. It then becomes essential for such organizations to evaluate
48
4 Measuring Competency
Table 4.10 Workforce competency gap
Competency gap
δCI (Ravi, Project manager)
−0.11
δCI (Vaibhav, Project manager)
−0.385
ci (Workforce, Project manager)
−0.495
the kind of competencies required to close the gaps. The scope of evaluation will
include the competencies required, number of people needed, their current competencies, and competency levels. Thus, competency gap of an organization indicates
the gap between workforce competencies and the competencies required to achieve
business goals. The competency gap must be bridged by either providing development opportunities to the employees or by recruiting people possessing the required
competencies.
The sample workforce competency gap of a team of two persons for the project
manager’s role in the network security software development unit is shown in
Table 4.10.
An organization may have competency gaps for more than one competency and
domain. The significance of a competency for which there is a gap is reflected in its
weight. Thus, the competency gap for various competencies also points to the areas
on which the organization needs to pay attention to. In practice, though, companies
may decide to focus on developing only the most critical competencies to optimize
time and resources.
Equally likely, employees may not wish to devote time and make an effort to
develop their competencies, either because they are not interested or they may not
be motivated to do so. For example, because of a need, several programmers in a
product team could be reassigned to testing because of which there will an obvious
competency gap for testing. The remaining employees may not be willing to work
as testers. This happens often in many projects. Organizational need and intent are
one side of the issue; the other is the employees’ willingness to acquire or develop
competencies needed by the organization.
Therefore, companies may have to frame and implement suitable career development strategies to attract talent in areas that many people may not be willing to
work in. For example, incentives can be offered to employees who are willing to
develop skills and competencies which are needed by the organization. Sometimes,
it may help if roles are redefined. For example, if people are not willing to be in a
manual testing role, they could be offered work in test automation. In such a case,
the role profile may be redesigned so that the employees’ time is mostly used for test
automation with a small proportion (15–25%) of their time allotted to manual testing.
Chapter 5
The Role Competency Matrix
Role Competency Matrix (RCM) is a framework with graphical representation of the
roles and competencies of the employees in an organization. The RCM framework
facilitates a structured approach to developing the competencies needed to fulfill
business objectives. It does this by “quantifying” the competencies of the employees
in an organization. It helps to track organizational and individual competencies for
various roles and projects. RCM provides comprehensive information about organizational competency.
RCM uses information on the competencies required for a role— in a project or the
organization—and those available in the workforce. It provides the inputs needed for
planning competency development of employees and the company. The framework is
designed to assist managers to make objective, people-related decisions based on a
quantitative representation of employees’ competencies. It brings transparency to
the interactions between employee and manager, and minimizes perception-based
decisions.
Before discussing the procedures for developing a Role Competency Matrix, it is
necessary to understand what competency frameworks are and relate their concepts
to typical situations in the IT industry. We will discuss with the help of an example.
A company wanted to set up a new product unit using next-generation technology platforms
for developing software products. The plan was to use advanced technologies and methods
like machine learning, graph database and big data, as well as advanced programming languages. Although the goal was clear, the organization did not have people with the necessary
competencies for this kind of work.
There were two options for addressing this gap. The first was to build a development team
ground up by hiring programmers, and architects with the relevant knowledge and experience. Obviously, if the right people are selected—those with the required knowledge and
experience—the product can be developed faster. The alternative was to identify people from
the organization, train them on these technologies and develop the product, which could take
more time than recruiting people from outside.
We will assume that for various reasons, the management decided on the second option. A
product development team was formed. The problem that arose here was that roles were
assigned to individual team members without considering the competencies of each person.
Thus, a person having experience in programming languages was assigned to work on big
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_5
49
50
5 The Role Competency Matrix
data; another team member with experience in big data was assigned to machine learning; and
so on. Not unexpectedly, the mismatch of competencies with roles started affecting product
deliverables. Clearly, this was a result of not assigning team members to roles appropriate
to their competencies. The consequences were significant: cost overruns, missed deadlines
and a big dent to the company’s reputation.
5.1 Competency Frameworks
The scenario described in the previous section is not unknown in the IT industry.
It should be obvious that the quality of a company’s software products and services is determined by the competencies of the teams responsible for developing
them. Typically, (product) development teams consist of people working in various
roles—product managers, people manager, project manager, requirements analyst,
architect, designer, programmer, tester, build and release engineer, etc. Each role
calls for a specific set of competencies for effective performance. Each person in the
team is responsible for a specific activity or a set of activities in his role.
Individual performances must complement team effort. In large companies, there
will be several development teams working on multiple projects at any given time.
Depending on project needs, the people working in these teams are expected to
possess the appropriate competencies. The challenge, obviously, is in ensuring that
the right persons are assigned to the right roles. However, there is also a more basic
question that needs to be addressed.
How should an organization define and specify the competencies and behaviors
needed for effective performance? The answer to this is that it can do so by developing
a competency framework. With the help of a competency framework, the organization
can create a standardized approach to defining and assessing competency that is clear
to everyone in the company.
Competency frameworks are comprehensive structures. They specify what people need to do to be effective in their roles and establish how their roles relate to
organizational goals and success. Competency frameworks are crucial strategic tools
for talent management because they integrate HR practices to business strategy.
Why are competency frameworks necessary?
To an employee, competency frameworks are the most visible affirmation of the
company’s business vision, and recognition by the management of the need to nurture
talent to achieve the business goals of the organization. Competency frameworks can
(and should)
• Provide a collective understanding of the critical competencies and desired behaviors in an organization.
• Drive employee commitment and motivation.
• Enable accountability for results and self-development.
• “Uncover” hidden talent within the organization.
5.1 Competency Frameworks
51
• Help assessments, feedback, and communications regarding performance in an
objective and standardized manner.
What are the factors that need to be considered while developing competency
frameworks?
While developing a competency framework, a few key points must be kept in the
mind:
• The description should be as specific as possible, leaving little or no room for
misinterpretation. Each competency and associated behavior must be distinctly
defined and should not be combined with another.
• The language must be simple to make it comprehensible for employees at all levels
in the organization.
• The structure must be simple and logical.
• The framework should be relevant for all the people using it (and likely to be
affected by).
These points will become clear as we discuss the Role Competency Matrix.
5.2 Developing a Role Competency Matrix
Development of a Role Competency Matrix is a logical process (Fig. 5.1). It begins
with the articulation of business objectives. For an effective Role Competency Matrix,
business objectives need to be clear and coherent.
Organizational vision and mission statements must be unambiguous. They must
be understood by everyone in the organization. They must be sufficiently clear to
enable the framing of business objectives.
1. Defining business objectives
It is not enough to mention the objectives in value terms alone. Business objectives
must also clearly mention the business/industry segment and/or the geographies in
which the organization is seeking to make an impact. They must state what must
be achieved (in terms of revenue, market presence, etc.) and by when. Business
objectives have the following features:
• They are aligned to the vision and mission of the organization.
• They are challenging, yet attainable.
• They are specific and measurable.
The business objective of a company that seeks ‘…to achieve $20,000,000 in revenues by
2015’ is not complete. It does not say anything about the company’s expertise and field of
operations. A better way of stating the objectives would be ‘…to achieve $20,000,000 in
our VLSI services in the Asia-Pacific Region’, or ‘…to achieve $20,000,000 in Engineering
Design Services’. Both point to the competencies that will be driving the company’s efforts
to meet the objectives. Obvious as it may seem, the need for such clarity is often overlooked.
One cannot assume that business objectives ‘should be obvious to everyone’.
52
5 The Role Competency Matrix
Organizational vision can never be static. As one set of goals is achieved—or is
close to being achieved—it may be time to redefine vision and mission objectives.
This is necessary because the market is in a constant state of flux and businesses
must keep pace [with the changes] if they want to continue to grow. New opportunities will arise. There will also be new—often unfamiliar—threats. Technological
obsolescence and keeping pace with advances are ever-present challenges for IT
companies. Customers will demand more value for the money they are spending.
Thus, businesses that are “future-ready” have better chances of surviving and staying ahead.
Business objectives can also be expressed graphically. In fact, a graphical representation of business objectives may make understanding easier and help in faster
communications to the various stakeholders. They provide convenient visual references with which a person can more easily relate than just a set of numbers. Images
also help to make for attractive posters which, when displayed at the right locations,
can also go a long way in reinforcing the message and keeping up workforce morale.
An example of a graphical representation of business objectives is shown in
Fig. 5.2.
The vision of a Network Security Software Development company was to be recognized as
a “Network Security Software Development” by 2010. By the time this goal was reached, a
new vision was defined which drove the company’s entry into the endpoint security business
by 2012 and a rise in revenues to $10 million. By then, the organization had identified
opportunities in mobile applications. The vision was reset yet again—to achieve $20 million
by 2014 through mobile applications. To achieve this vision, the company had to develop
competencies in intranet security by 2010, endpoint security by 2012, and mobile application
development by 2014.
Business unit
Role competency
matrix
Business Objectives
Roles
Competency
list
Determine
Competency Gap/
Competency Index
Roles and competency
mapping
Roles and competency
mapping with weightages
Communicate
Competency
assessment
Fig. 5.1 Graphical Representation of the Process for developing a role competency matrix
5.2 Developing a Role Competency Matrix
53
“To achieve $10 million by 2012 through Network Security Software
development and End-Point Security applications for Japanese Customers”
Network Security Software
development
Network Security Software
development and End-point
Security
Network Security Software
development, End point
Security and Mobile
Applications
2010
2012
2014
Fig. 5.2 Representing business objectives graphically
At all stages of its expansion and growth, the company ensured that its employees were
completely aligned with its vision and oriented towards the business targets. To be sure,
this took a lot of effort, but the company had planned well. The organization and its employees
developed the competencies required for delivering products and services, ensuring that the
milestones were not missed. Since the organization had chosen to grow organically, the
competencies were developed in-house through training and skills upgrades for endpoint
security and mobile applications.
In this representation, the company has also identified the milestones that must
achieve to meet the stated business objectives. These milestones were identified
based on the company’s study of the network security domain. It was imperative
for the company to meet the timelines for their products (or services) to make an
impact in the market (one must not forget that competitors were also growing). It is
also obvious that the company had effectively communicated its expectations of the
competencies that employees must possess (or develop) to achieve the goals.
The competency development milestones can thus be expressed in the following
ways:
By 2010,
• Intranet security—MAC address-based monitoring and switch-based monitoring
capabilities (or competencies).
By 2012,
• Intranet security—Monitoring mail and web traffic communication.
• End-point security— Monitoring the data that has been copied on to external
devices.
By 2014,
• Intranet Security—Monitoring of illegal software.
• Endpoint security— Monitoring of unauthorized applications on laptops/desktops.
• Mobile application development on Android platforms.
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5 The Role Competency Matrix
Regardless of how organizations choose to present them, business objectives must
be sufficiently detailed to help in the development of a competency framework that
is aligned with the company’s business strategies.
2. Identify roles and develop profiles for these roles
With the business objectives in place, the next step is to decide which organizational
functions are critical to meeting these objectives. This helps to decide the scope of
RCM implementation—organization-wide or limiting implementation to business
units that are regarded as critical-to-growth. This is a management decision which is
taken after assessing various factors, including a commitment by business unit heads
for supporting the program, the unit’s ability and willingness to risk a certain degree
of disruption while RCM is being implemented, the head of business unit’s understanding of the program and its methods, and employees’ willingness to participate.
These are discussed in more detail in Chapter 7.
Consider the example of an IT services organisation which has an established presence in
multiple business domains like Banking, Finance, Insurance, Manufacturing and Embedded
Systems. Each business unit will have a set of business objectives that are specific to that
unit. Because of the scale of its operations, each unit also has sub-units which provide
customized services to customers in the segment. It is quite possible that the company does
not see all its business units as being equally crucial to its growth. Therefore, it can choose
the business units in which RCM will be implemented.
Organizations must critically assess their capacity to focus and invest time and
resources before deciding the scope of RCM. Hence, they might want to begin with
one business unit and extend it to other areas as they gain experience and confidence.
All aspects must be weighed carefully while arriving at a decision. It will also help
if the purpose and objectives of RCM are documented and shared with employees in
the form of a mission statement.
After deciding the scope of RCM implementation, (organization level, business
unit level, or project level), the role profiles are defined. They may include roles
in marketing, sales, project manager, test manager, business analyst, designer, programmer, and so on. These are considered as “frontline” functions, responsible for
driving business and vital for achieving the targets. Other roles may be included in
the scope if management considers that they are crucial to achieving organizational
goals. The may include Accounts and Finance, Administration, etc.
Roles are defined by organizational structures and processes. They are specific
to the company’s needs and are designed to run business operations smoothly and
efficiently, and for ensuring accountability. Without an organizational structure, it is
very difficult to define roles and responsibilities and hence, the competencies required
for these roles.
Organizational structures and processes are company-specific. There is no set
rules as this example of a project manager’s role shows. In some organizations, the
project manager plans execution with a few key people in his team after which the
development process is initiated. In other organizations, the project team is formed by
bringing together people from various domains like business analysts, programmers,
5.2 Developing a Role Competency Matrix
(a)
Business Analysts
55
Programmers
Testers
Project Team
Project
Manager
Software
Services
(b)
Project Team
Project
Manager
Requirements
Finished Product
Infrastructure
Services
Fig. 5.3 a Cross-functional team. b Multifunctional team
and testers who will work together to execute the project (see Fig. 5.3a). In yet another
approach to project execution, a small team in the organization will scope the project,
collect requirements from the customer, and then assign the work to various groups,
(Fig. 5.3b). These groups may be internal to the organization or vendor-partners
(in which case they may be kept outside the scope of RCM). If they are internal
to the organization, their roles and responsibilities must be clearly defined in the
organizational structure and in processes. This is a necessary input for identifying
roles.
Regardless of organizational processes, and the approach to product implementation, the project manager’s role remains broadly the same which demands a specific
set of competencies.
56
5 The Role Competency Matrix
3. Identifying competencies
Identifying the critical competencies is vital for their proper deployment and development. It is essential there is clarity about the job requirements while deciding on
the competencies required for performing the job well. Even today, in many organizations, the process of assigning people from business unit to projects is done without
proper assessment of the role and its competency requirements. However, identifying
competencies cannot be solely the responsibility of the HR department because they
may not be completely familiar with what each role entails. It is necessary to engage
the people who are doing the work since they are the ones who know what is required
to perform in each role. Companies that are not confident of doing this themselves
can consider engaging consultants. Consultants bring two significant advantages to
their jobs: they are relatively free of bias and offer an outsider’s perspective. One
may also expect that consultants will provide advice on good practices.
In the early years of the growth of India’s IT sector, it was common practice
to induct computer science graduates as programmers. This led to problems in
project execution because of their limited or complete lack of exposure to the
business domains that they had to work in (banking, insurance, manufacturing,
etc.). They were unable to understand customer requirements which had to be
incorporated in software development. This resulted in a considerable amount
of rework.
Over time, IT companies have realized—often the hard way—that technological know-how and capabilities alone are not enough for understanding
customer needs, developing solutions, and executing projects. The customer
expects solutions to his business needs, and not just a computer program. Thus,
project teams realized that they must possess the necessary level of domain
expertise and should, therefore, also focus on developing multidisciplinary
competencies. For this reason, people with thorough knowledge of business
domain became indispensable to project teams.
Today, strong project teams include people with the necessary domain expertise (banking, insurance, manufacturing, supply chain, etc.) to ensure product
quality. Expressed in another way, these organizations clearly specified team
and individual competencies so that these are aligned to project objectives.
Thus, it is imperative to have people who have a superior understanding of the
job to identify the competencies required for the given roles.
Competencies can be direct or indirect. Direct competencies are those required
for doing the job well. Indirect competencies have an influence on job performance.
For example, to develop a network management product, the programmer must know
Perl, which is a direct competency for this role. In addition to knowledge and experience of programming in Perl, it is desirable that the programmer understands network
5.2 Developing a Role Competency Matrix
57
management and design without which his/her programming skills will have limited
value and impact on the quality of product.
Competencies are at different levels. These are organization-specific, business
unit-specific, project-specific, and individual-specific competencies.
Organization-specific competencies. Organization-specific competencies reflect the
core values of the organization and are usually specified by the founders. People are
the face of the organization. They are expected to exhibit a set of competencies
and behaviors that reflect organizational character to certain standards which are
nonnegotiable. These include ethical conduct, integrity, agility and responsiveness,
and others. Some organizations may expect high standards of personal conduct even
outside their workplace. Organization-level competencies devolve into the roles and
responsibilities specified for various job functions.
Business unit-specific competencies. To understand this better, , let us discuss the
competency needs of two business units of an organization. Business unit 1 (BU1)
has a presence in the financial domain—banking, insurance—and geographies (US,
UK). Business unit 2 (BU2) provides network solutions in Japan.
For its projects, BU1 will prefer a project manager with experience in the Insurance domain. It will need people with knowledge/expertise in insurance and banking
as well as familiarity with the business culture in the US and the UK. On the other
hand, BU2 (which provides network solutions) will need people with networking
background and experience. They must also be able to work with their Japanese counterparts. In both examples, domain and geography are important considerations while
identifying business unit-specific competencies. Business unit-specific competencies
are usually identified by the business head along with senior managers in his unit.
Project-specific competencies. Project-specific competencies are determined by
project requirements—technology, programming language, DBMS, etc. Some
examples of project-specific competencies are programming in Java, PL/SQL, and
Oracle 8i.
Considering the variety in technology platforms, it may not be easy to deploy
people with project-specific competencies across projects and business units. For
example, one project may require a person with competency in Oracle DBMS. This
competency may not be required after the project is over. However, there may be a
requirement for PostgreSQL. What must be done?
In a situation like this, the project manager must examine his (or her) choices.
Can the existing personnel be redeployed in PostgreSQL after retraining? Or would
the project be better served by recruiting someone with competency in PostgreSQL?
The decision will be influenced by several considerations, such as the gap between
required and existing competency, the employee’s “trainability”, the time required to
train the employee to the required competency level in a new skill, etc. Quite often,
companies do not have the competency data required to make the right decision.
58
5 The Role Competency Matrix
Project-specific competencies are usually identified by the project manager. If
required, other team members may be involved in the task. These competencies
must be identified during the project planning stages.
Role-specific competencies. They are determined by responsibilities and the accountability levels of that role. For example, the competencies of a project manager,
designer or programmer are role-specific. They are also referred as behavioral competencies and are applicable across projects.
Since it is the project manager’s responsibility to execute the project to the agreed
standards (time, costs, performance, etc.), he (or she) is expected to be familiar with
the various project-related tasks and know what actions must be prioritized and how.
The project manager must coordinate the various activities being done by the team
to complete the project satisfactorily. Whenever required, the project manager must
perform the role of a coach for the less-experienced (or poorly motivated) team members. Therefore, his (or her) competencies should be more broad-based to include
knowledge about software systems, architecture, database, file structures, etc.
The designer in the project team must have a good understanding of the architecture and design of the system, and be able to simplify the design, and reuse components as well as to fragment the existing system to make it reusable.
For a programmer, role-specific competencies can include knowledge of data
structures, algorithms, systems programming, API, error handling, etc.
Role-specific competencies are specified at the business unit (or) project level by
business unit head, project managers, and technical managers.
Defining and specifying competencies
In many companies, the head of the business unit is responsible for defining
competencies. There are various ways of specifying the required competencies. Usually, two broad approaches are followed. In both, the processes are
facilitated by the Human Resources (HR) departments:
Workshop mode: In the workshop mode, unit heads participate in a workshop.
This is a focused activity during which they will frame the role requirements
and identify role-specific competencies. Usually, the participants are provided
with a set of guidelines to follow. These guidelines are shared and explained
by HR after which the workshop participants are given time to identify and list
the competency needs for their respective teams. These competencies are then
stuck (pinned or glued) to the board for discussion. Doubts and ambiguities
are addressed, and the competency list is finalized for further action.
HR will guide the teams in defining the competencies, and their levels, at
an appropriate granularity so that they are completely understood. They will
also review them to ensure that they are measurable. It is a good practice to
validate the definitions by sharing them with few of the team members to check
and understand how they understand and if it is in-line with the management
understanding of the competencies.
5.2 Developing a Role Competency Matrix
59
One-on-One Discussion: In the one-on-one approach, HR works with managers
(or unit heads) on an individual basis. Instructions and guidelines are discussed.
The managers will identify the competencies (if required, after consultation
with their colleagues/teammates) and submit the list within the given time
frame. HR will collate the competencies, finalize the list, and circulate it among
the employees. The list is revised or updated periodically.
HR then reviews the competencies for their “measurability” and guides
the teams for defining the competencies and their levels at an appropriate
granularity that is understood by the team. It’s a good practice to share this
with one of the team members and understand how they understand and if it is
in-line with the management understanding of the competencies.
Both methods have their advantages and limitations. The choice, therefore,
is based on which one suits an organization better, which is determined by
organizational culture, team size, and dynamics.
In general, the workshop mode works well when the unit has a collaborative
and open culture and HR is confident that all participants will contribute meaningfully. On the other hand, the one-on-one method is used when HR believes
that it must spend time with each stakeholder separately. A combined approach
can also be adopted, beginning with a workshop to discuss the objectives scope
of the exercise followed by interactions with individual stakeholders.
People processes in smaller organizations may not be mature enough to have
a formal mechanism to identify competencies. Here, a few senior managers
could be entrusted with the responsibility of identifying the competencies of
their team members based on their roles. These competencies are then listed
and compiled in a database.
A list of competencies and the required competency levels are prepared. The
task requires a thorough understanding of job requirements. The competencies may
be grouped and arranged in the format shown in Table 5.1.
After the competency list is ready, competency levels are defined for each competency. The competencies in the list may be grouped and arranged as shown in the
format in Table 5.1. Once the required competencies are specified, they are compared
with the ones available in the organization’s competency database. This also ensures
Table 5.1 Competency listing
Competency type
Competency
Organization
Competency 1
BU
Competency 2
Role
Competency 3
Project
Competency 4
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5 The Role Competency Matrix
Competency
Inventory
Existing Competency
List
Business Objectives
Competency gap
Required
Competencies
Revised Competency
List
Fig. 5.4 Preparing a competency list
that duplications are avoided. The process for preparing a competency is explained
in Fig. 5.4.
Organizations must maintain a competency inventory (or database) which they
can refer for comparing what they have with the competencies required. This helps
in identifying the gaps between what is available in the organization and what is
needed at both project and organizational levels. With this information, a revised
competency list is prepared, highlighting the competencies that need to be developed.
A simple example of a revised competency list developed for a Network Security
project is shown in the schematic in Fig. 5.5.
As one can see in this example, basic knowledge of Java and networking are
required competencies for which the company must continue to invest in training. But it can also be seen that there is a need for new competencies— .NET,
C programming, WMI, and endpoint security. Therefore, the organization must plan
investments to acquire these competencies. PostgreSQL is not required to achieve
the next milestone and therefore, the organization can consider reducing its training
budget for this competency. Thus, as we can see, this approach can help organizations
direct their spending and investments on upgrading or developing the competencies
required to achieve business milestones.
These competencies are determined by the company’s business objectives. Competencies that are not mentioned in the list but are necessary for achieving business
goals are the “missing” competencies. The "missing" competencies represent the
competency gap—that is, these competencies must be developed in the workforce,
either through training or external hiring.
5.2 Developing a Role Competency Matrix
Existing Competency list
Java
PostgreSQL
Networking basics
61
Required Competency list
Java
.Net
C Programming
WMI
End point security basics
Networking basics
Revised Competency list
Java
PostgreSQL
Networking Basics
.Net
C Programming
WMI
End point security basics
Fig. 5.5 Revised competency list
Roles
Revised Competency
List
Roles and Competency Mapping
Fig. 5.6 Role and competency mapping
4. Mapping competencies to roles
In the next step, the identified competencies are mapped to these roles (Fig. 5.6).
For each role, the people (or unit) manager will refer the competency list and select
the competencies required for the role. There may be a few competencies which are
common to all roles. It is possible that, for a given role, several competencies are
specified, sometimes as many as ten or more. To avoid the competency list from
becoming too cumbersome and difficult to work with, it may help to group compe-
62
5 The Role Competency Matrix
Table 5.2 Mapping roles to required competencies and the corresponding competency levels
Role
Competencies
Required competency
level
Role 1
Competency 1
Competency 2
Level 2
Level 3
Competency 3
Competency 4
Level 1
Level 2
Competency 5
Level 2
Table 5.3 Mapping role competency for a network unit
Role
Competencies
Required Competency
Level
Project Manager
Project Management
Java
.Net
PostgreSQL
.Net
Java
PostgreSQL
Project Management
Level 3
Level 2
Level 2
Level 2
Level 3
Level 3
Level 4
Level 1
Technical lead
Description
tencies by their criticality to the role. By doing so, they can be categorized as critical,
necessary, and good-to-have. For easier understanding, each category can be given
a different color—red for critical, green for necessary, and amber for good-to-have.
Organizing competencies in this manner helps in keeping the number of competencies in an RCM at a manageable level, and also provide easy visual references to
managers. The list in Table 5.2 is an example of a color-coded competency list.
A sample competency mapping for the network security software unit is shown
in Table 5.3.
5.2 Developing a Role Competency Matrix
63
Table 5.4 Rating guidelines
Rating
Description
1
Good to have, but not necessary
3
Necessary
5
Essential
7
Important
9
Very important
If the number of required competencies in all the three color groups is less than,
say, 10, all of them may be considered for the next step for developing RCM. It
must be noted that ten is an arbitrary quantity, chosen to explain the point that more
the number of competencies, more complex will the mapping process become. One
useful guide for making the mapping process less cumbersome is to include only
those competencies which are mentioned in the Red and Green boxes.
5. Give weights to the competencies
Weights indicate the relative significance of each competency in the role. It is not
necessary that all competencies required for a given role should have the weights.
The extent of their importance to the role will vary.
For a project manager’s role, competencies in project planning and execution are given more
weight than domain knowledge and programming. On the other hand, for a technical lead,
competency in “C” programming will be given greater weight than domain knowledge.
Similarly, a team member in the Network Security Software project must have Level 2
competency in RDBMS as well as .Net. But, considering that the scope of the project is
endpoint security software, .Net will carry a higher weight than RDBMS.
Therefore, the competencies required for each role are weighted for their relative
importance to the role and project. Each competency is rated on a scale of 1 (Good
to have but not essential)–9 (very important). Weights are usually decided by the
business unit heads and/or project managers who have a better understanding of the
importance of competency to the role.
Guidelines for awarding weights are given in Table 5.4.
The weights are calculated using Equation 5.1.
W(R, C) =
r
p
(5.1)
ri
i=1
where
r is the rating provided for a competency in a role.
p is the number of competencies.
W is the weight of a competency (C) for a role (R).
64
5 The Role Competency Matrix
We will explain weights with an example. A software company wants to hire a
project manager. As the first step in the selection process, it identifies the competencies that a project manager must possess. The competencies are the following:
•
•
•
•
Project management
Java
.NET
PostgreSQL
Here, project management competency is a critical requirement, while Java.NET,
PostgreSQL are desirable. One competency can be more important than the others
for the role in question. To reflect the relative importance of each competency for
the given role, suitable weights are given (Table 5.5).
To determine the weight for Project management, add the ratings assigned to all
the competencies, which is 20 (9 + 5+5 + 1), and divide it by the rating assigned to
each competency. For project management, the relative weight is 9/20 = 0.45.
Using the guidelines, the weighted role competencies can be represented as shown
in Table 5.6.
It can happen that certain competencies will have a low weight, sometimes as little
as 0.05. Low values may indicate that the particular competency is not significant.
In such cases, the managers (or unit heads) must decide whether all competencies,
regardless of their weight, will be considered, or whether only those above a minimum
Table 5.5 Relative weights
Competency
Rating
Relative weight
Project management
9 (Very important)
9/20 = 0.45
Java
5 (Essential)
5/20 = 0.25
.NET
5 (Essential)
5/20 = 0.25
PostgreSQL
1 (Good to have)
1/20 = 0.05
Table 5.6 Weighted role competency
Role
Competency
Required competency level
Rating
Weight
Role 1 (R1)
Competency 1 (C1)
Level 2 (L2)
W1
W(R1, C1)
Competency 2 (C2)
Level 1 (L1)
W2
W(R1, C2)
Competency 3 (C3)
Level 3 (L3)
W3
W(R1, C3)
Competency 4 (C3)
Level 2 (L2)
W4
W(R1, C4)
Competency 1 (C1)
Level 4 (L4)
W1
W(R1, C1)
Competency 2 (C2)
Level 2 (L2)
W2
W(R1, C2)
Competency 3 (C3)
Level 1 (L1)
W3
W(R1, C3)
Competency 4 (C3)
Level 3 (L3)
W4
W(R1, C4)
Role 2 (R2)
5.2 Developing a Role Competency Matrix
65
Role Competency Mapping
Compute Weightages
Delete Competency from
Role Competency Mapping
Document
Any
competency
weighatge <
0.05
Yes
No
Final Role-Competency
Mapping document with
weightages
Fig. 5.7 Process for computing weights
value should be treated as significant. One rule of thumb, which helps in decisionmaking, is to consider only those competencies that are rated between 7 and 10
and remove those which are less significant. The weights are then recalculated till
a significant value is achieved. Figure 5.7 summarises the process of computing
weights.
The next step is to prepare the role competency list. The format should be easy
to understand and communicate (Table 5.7 shows one way of how it can be done).
Using this approach, the role competency list for the network security software unit
can be prepared (Table 5.8).
6. Communication
The importance of communications can never be overstated. Communication with
employees is vital for the acceptance and success of RCM. The Role Competency
Matrix, as well as the methods used, must be properly explained to all employees.
Transparency and clarity in communications help to avoid anxiety and encourage
the workforce’s cooperation and participation. Communications must avoid unnecessary hype and fanfare. Employee buy-in is an essential requirement for effective
implementation of RCM.
Typically, unit managers (or business heads) hold meetings with employees before
the start of the self-assessment process (The competency assessment processes will
be explained and discussed in a later section. At this stage, it is essential to establish
a clear link between individual competencies and business goals). Roles and
66
5 The Role Competency Matrix
Table 5.7 Role-competency list for communication
Role
Competency
Required
competency level
Weight
Employee
competency level
Role1 (R1)
Competency 1 (C1)
CL(R1, C1)
W(R1, C1)
–
Competency 2 (C2)
CL(R1, C2)
W(R1, C2)
–
Competency 3 (C3)
CL(R1, C3)
W(R1, C3)
–
Role 2 (R2)
Competency 4 (C4)
CL(R1, C4)
W(R1, C4)
–
Competency 1 (C1)
CL(R2, C1)
W(R2, C1)
–
Competency 2 (C2)
CL(R2, C2)
W(R2, C2)
–
Competency 3 (C3)
CL(R2, C3)
W(R2, C3)
–
Competency 4 (C4)
CL(R2, C4)
W(R2, C4)
–
Table 5.8 Role competency list for network security software
Role
Competency
Required
competency level
Weight
Employee
competency level
Project
manager
Project
management
Level 3
0.45
–
Technical
lead
Java
Level 2
0.25
–
.NET
Level 2
0.25
–
PostgreSQL
Level 2
0.05
–
Project
Management
Level 1
0.1
–
Java
Level 3
0.3
–
.NET
Level 3
0.3
–
PostgreSQL
Level 4
0.3
–
competencies, as well as competency requirements, can be explained at the meeting.
Doubts and queries are clarified during this meeting. After the meeting, the employees are given a timeframe (usually one week) to complete self-assessment of their
competencies and competency levels, and then compare them with the ones specified for their roles. Also, employees can provide their competency levels for other
competencies, which are not assigned to their role. Self-assessment of competencies
is essential if employees are expected to take responsibility for their development.
Competency data across the organization must be collected in a standardized
format. In addition, guidelines for entering competency data in the format must be
issued. The format should unambiguously define the competencies and competency
levels. A sample competency data collection format is shown in Fig. 5.8.
When should competency information be collected? While there are no set rules
for this, it is recommended that competency data is collected at least once in a
quarter (3 months) or half-yearly (6 months). Some organizations may find it useful (or convenient) to compile competency information for, or during, the annual
5.2 Developing a Role Competency Matrix
67
Name of the employee:
Date:
Current role:
Competency
type
Management
Competency
Competency definition
Project management
Technical
Java
Technical
.Net
Technical
PostgreSQL
Refer to project management competency
level definition
Refer to java competency level definition
Refer to .Net competency level definition
Refer to PostgreSQL
competency level definition
Employee competency
level
Fig. 5.8 Format for filling competency data (suggested)
performance appraisals. Others might want to treat this as a separate activity which
entails additional time and resources. Some companies may not see this as a viable
approach. Regardless of when an organization collects competency data—and the
methods it uses—it is advisable that to the extent possible, the competency data collection process be made a part of organizational systems and practices. This promotes
accountability, and helps to avoid unnecessary distraction and employee tensions,
duplication of work and additional expense.
7. Assessing of competency levels
The competency information provided by the employees is reviewed and moderated
by their supervisors with the help of clearly defined criteria. The process is explained
schematically in Fig. 5.9.
Competency information can be collected and collated in various ways. Some
organizations may adopt a centralized process through which data is collected through
a web portal, which is coordinated and supervised by the HR department. In others,
the employees’ people manager may be made responsible for the task. A few companies (or those without much variety in competency needs) may ask their employees to
send the information by e-mail or enter them in a spreadsheet. In all cases, employees
must understand the purpose and value of the exercise.
The information provided by the employees reviewed/verified by
peers/supervisors for correctness and completeness of information (as discussed in
the subsequent section).
A simple format, with examples, for collecting competency information of
employees is given in Table 5.9.
A few questions on self-assessment may arise here:
• Is it necessary for an employee to justify his/her self-assessment?
• How must he/she do so?
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5 The Role Competency Matrix
The answer to the first question is, yes. Employees must be encouraged (and
motivated) to provide supporting evidence to minimize the chances of disagreements
during the review. If necessary, the organization must frame guidelines based on the
definitions of competency levels. Documentary evidence can include
• Certifications.
• The number of years of experience (this may not be enough in itself).
• Records of instances in which the employee may have resolved a particularly
difficult problem or worked in challenging assignments.
Senior/Middle
Manager
It is also advisable to frame guidelines for providing evidence of competencies.
Thus, a typical self-assessment report for the network security team, report will be
asshown in Table 5.10.
Disagreements between an employee’s and his/her supervisor’s assessments can
and do happen. Mature organizations have mechanisms for resolving these issues in a
transparent manner. As far as possible, organizations must not impose the supervisor’s
assessment on the employee; rather, the employee must be made to understand the
1
Identify competencies
required based on business
objectives
4
Employee
Supervisor
Review and
Approve
Competency
Levels
3
Competency
Database
2
Submit the self-assessment
of competency levels
Select Competencies from
the List
Fig. 5.9 Competency level assessment
Table 5.9 Format for collecting employee competency information
Employee
Employee 1
Date
Competency
Self-assessed competency level
Supervisor assessed competency
level
Competency 1 (C1)
E1C1
–
Competency 2 (C2)
E1C2
–
Competency 3 (C3)
E1C3
–
Competency 4 (C4)
E1C4
–
5.2 Developing a Role Competency Matrix
69
reasons why his (or her) supervisor’s review differs from his/her self-assessment.
This approach leaves room for both sides to understand each other and reach an
agreement. If the employee is not convinced (or satisfied) with the outcome, the
matter can be referred to the next level (HR) for resolution.
Disagreements can also arise from incomplete (or ambiguous) specifications of
competency level or, they may result from the employee’s perception that he/she
is being unnecessarily “sidelined”. Nonetheless, there must be appropriate mechanisms for review, escalation, and resolution. Management must not overlook the
necessity to involve their employees as their acceptance and participation are critical
to the meeting of RCM’s objectives. No effort must be spared to explain the RCM
framework and the benefits it can bring, both to the organization and the individual
employees.
The competency data collected from assessment and review are used as inputs
for calculating competency index and competency gap, which form the basis of the
Role Competency Matrix.
8. Determine competency index and gap
With the competency data collected from the employees and validated by the people
manager, employee competency index and competency gaps are calculated as shown
in Sect. 4.4.1 and Sect. 4.5.1, respectively. The competency index and competency
gaps for the select roles are then shown in the Role Competency Matrix for easy
visual reference for the employee as well as the management.
Table 5.10 Self-assessment sheet in network security team
(a) Project manager
Role
Project manager
Employee
Ravi
Date
Competency
Self-assessed competency level
Supervisor assessed competency level
Project
management
L3
–
Java
L4
–
.NET
L2
–
PostgreSQL
L2
–
Jan-11
(b) Technical lead
Role
Technical lead
Employee
Vaibhav
Date
Competency
Self-assessed competency level
Supervisor assessed competency level
.NET
L3
–
Java
L3
–
PostgreSQL
L3
–
Project
management
L1
–
Jan-11
70
5 The Role Competency Matrix
Employee
Ravi
Vaibhav
3
1
4
3
2
3
2
3
0.13
-0.09
-0.1
-0.08
Competencies
Roles
Project
manager
Technical
lead
Project
management
Java
.net
PostgreSQL
3
2
2
2
0.45
0.25
0.25
0.05
1
3
3
4
0.1
0.3
0.3
0.3
Fig. 5.10 Role competency matrix for competency gap of a Network Security Software Development team
Employee
Ravi
Vaibhav
3
1
4
3
2
3
2
3
0.74
0.53
0.68
0.7
Competencies
Roles
Project
manager
Technical
lead
Project
management
Java
.net
PostgreSQL
3
2
2
2
0.45
0.25
0.25
0.05
1
3
3
4
0.1
0.3
0.3
0.3
Fig. 5.11 Role competency matrix for competency index of a Network Security Software Development team
9. Role competency matrix
The role competency matrices for the competency gap and competency index for the
roles and employees discussed in the example are shown in Fig. 5.10 and Fig. 5.11,
respectively. The role competency matrix provides a graphical representation of the
status of competencies of Ravi and Vaibhav for the project manager and technical lead
roles, respectively. Management can use this for competency development planning
for Ravi and Vaibhav on the competencies which are crucial for their respective roles
and career progression.
5.2 Developing a Role Competency Matrix
How to read the Role Competency Matrix
The Role Competency Matrix can be used for multiple roles and competencies.
Before discussing with an example, it is necessary to understand its structure.
For easier understanding of the underlying principles of RCM, let us refer
to Fig. 5.12. The number of roles are limited to two with four competencies
defined for each role. An RCM has been developed for two employees (In
practice, there could be several roles and competency requirements, and a
much larger number of employees). The number of columns and rows will
depend on the number of employees being considered for RCM (Customized
software, designed for the purpose, can also be used. What is necessary,
however, is that the principles and processes must be understood by the users).
Role 1 (R1), Role 2 (R2) are defined for a project. Competency 1 (C1),
Competency 2 (C2), Competency 3 (C3), and Competency 4 (C4) are the
competencies required for these roles. Employees E1 and E2 are under consideration for the roles for which their competency index must be determined
and tracked over a period.
Cell RL(R1, C1) represents the required competency level for Competency
C1 in role R1. Similarly, Cell RL(R1, C2) represents the required competency
level of competency C2 for role R1. Cell W(R1, C1) shows the weight given
to competency C1 for role R1. Cell W(R1, C2) represents the weight for
competency C2 in role R1. Cell E1C1 represents employee E1’s competency
level for C1. Cell E2C1 represents employee E2’s competency level for C1.
Cell δCI(E1R1) represents the competency gap in employee E1 for the role
R1 and is represented by δCI.
The lower half of the matrix shows the competency gaps for various roles,
which are determined periodically. Tracking competency in this way is useful
for monitoring improvements or taking corrective actions in case of a reduction
(or) drop in competency.
The competency gap of Employee 1 is represented by δCI (E1R1) for Role 1.
The gap is measured every calendar quarter (January, April, July, and October)
and shown in the gap monitoring section of the RCM. In a similar manner, the
competency gap of employee E2 for Role R1 in the same period is represented
by δCI(E2R1) for the same period. δCI of employees E1 and E2 are plotted
for the period as shown in Fig. 5.12.
For tracking Competency index, a separate Role Competency Matrix (RCM)
is used (Fig. 5.13). The roles (R1, R2), competencies (C1, C2, C3, C4) and
their corresponding weights “W” for the competencies and roles are the same
as the previous RCM. The cells CI(E1, R1) indicates the competency index
of employee E1 for the R1 and is represented by CI.
The lower half of the matrix shows the competency indices for various roles,
which are determined periodically. Tracking competency in this way is useful
for monitoring improvements or taking corrective actions in case of a reduction
(or) drop in competency. The competency index of Employee 1 is represented
71
72
5 The Role Competency Matrix
by CI (E1R1) for Role 1. The competency index is measured every calendar
quarter (January, April, July, and October) and shown in the monitoring section
of the RCM. In a similar manner, the competency index of employee E2 for
Role R1 in the same period is represented by CI(E2R1) for the same period.
CI of employees E1 and E2 are plotted for the period as shown in Fig. 5.13.
When to use competency gap and competency index?
As the formula shows, the competency gap is always computed for the competencies required for a role, whereas the competency index is not specific to the
role. It only shows the competency level of the employee at that point in time,
and how significant that competency for the business. Thus, the competency
gap is used as the basis for competency development, recruitment, assignment
and reallocation of people to various roles.
Competency index is a measure of the strength of the intellectual capital of an
employee/workforce and, over time, can show the trends (increase or decrease)
in competencies, or whether they are stagnating.
5.3 Competency Database
What is competency database?
All employees have multiple competencies. It often happens that when there is a
requirement for a specific competency, managers have no information on whether it
is available in the workforce, and with whom. Decision-making—to assign available
people, recruiting people, or outsourcing the work—becomes difficult in the absence
of such information. It is possible that an employee (or some employees) may possess
these competencies which were needed for a legacy project, executed few years ago.
If employee competencies are maintained in a database, decision-making would
become faster, easier, and inexpensive.
Competency databases are crucial to people management. Basically, they are lists
of competencies that are available organization-wide. Employees bring with them a
set of competencies when they join an organization, which improve with time. They
also develop new ones during their work or with training.
How useful are competency databases?
Let us consider an organization that started its business journey with mainframes
and then, as market needs changed, diversified into other technologies. New capabilities and competencies were developed. It is possible that there will be a need for
5.3 Competency Database
73
Employee
E1
E2
E1C1
E2C1
E1C2
E2C2
E1C3
E2C3
E1C4
E2C4
CI(E1R1)
CI(E2R1)
CI(E1R2)
CI(E2R2)
CI(E1R1)
CI(E2R1)
Competencies
Competency
1
Competency
2
Competency
3
Competency
4
Role 1
(R1)
RL(R1,C1)
RL(R1,C2)
RL(R1,C3)
RL(R1,C4)
W(R1,C1)
W(R1,C2)
W(R1,C3)
W(R1,C4)
Role 2
(R2)
RL(R2,C1)
RL(R2,C2)
RL(R2,C3)
RL(R2,C4)
W(R2,C1)
W(R2,C2)
W(R2,C3)
W(R2,C4)
Roles
Jan
Apr
CI(E1R1)
CI(E2R1)
Jul
CI(E1R1)
CI(E2R1)
Role 1
Role 2
Oct
CI(E1R1)
CI(E2R1)
Jan
CI(E1R2)
CI(E2R2)
Apr
CI(E1R2)
CI(E2R2)
Jul
CI(E1R2)
CI(E2R2)
Oct
CI(E1R2)
CI(E2R2)
Fig. 5.12 Role Competency matrix for competency gap
competencies that are not being used. Competency databases help managers to identify people with the required competencies, as well as competency gaps that trigger
action on training and recruitment. A typical scenario is described in the following
paragraph.
Till recently, a company was developing applications with java and PostgreSQL as the
primary technologies. With changing market needs, it shifted focus to graph database like
neo4j and HBASE, which was a significant change. However, there may be a requirement in
the future for people with competency in PostgreSQL. This happens often. If the company is
maintaining a competency database, it will be easier and less expensive for the management
to identify persons with Java and/or PostgreSQL competencies than to invest in training
and/or recruitment.
74
5 The Role Competency Matrix
Employee
E1
E2
E1C1
E2C1
E1C2
E2C2
E1C3
E2C3
E1C4
E2C4
CI(E1R1)
CI(E2R1)
CI(E1R2)
CI(E2R2)
Jan
CI(E1R1)
CI(E2R1)
Apr
CI(E1R1)
CI(E2R1)
Jul
CI(E1R1)
CI(E2R1)
Oct
CI(E1R1)
CI(E2R1)
Jan
CI(E1R2)
CI(E2R2)
Competencies
Competency
1
Competency
2
Competency
3
Competency
4
Role 1
(R1)
RL(R1,C1)
RL(R1,C2)
RL(R1,C3)
RL(R1,C4)
W(R1,C1)
W(R1,C2)
W(R1,C3)
W(R1,C4)
Role 2
(R2)
RL(R2,C1)
RL(R2,C2)
RL(R2,C3)
W(R2,C1)
W(R2,C2)
W(R2,C3)
Roles
RL(R2,C4)
W(R2,C4)
Role 1
Role 2
Apr
CI(E1R2)
CI(E2R2)
Jul
CI(E1R2)
CI(E2R2)
Oct
CI(E1R2)
CI(E2R2)
Fig. 5.13 Role competency matrix of competency index
How must competency database be maintained?
A good indicator of institionalised competency management practices in an organisation is the frequency at which the competency database is updated. The competency
database need to be updated when
• a new employee joins the organization;
• an employee completes a training program;
• an employee is working on a project in which case the update can take place at
3-month or 6-month interval;
• an employee completes the project;
• an employee leaves the unit or organization.
People are hired for specific competencies that are required by the organization
for achieving certain business objectives. In addition, the person may also possess
competencies that may not be immediately required by the company. But these
competencies must also be included in the database.
5.3 Competency Database
75
Usually, individuals prepare their profiles to match the requirements of the role
that they are applying for. Other competencies are rarely mentioned because the
information is not asked. The result is that management is not aware that certain
competencies and knowledge, though not needed then, may be useful later. Therefore,
it is a desirable company practice that a new employee must be asked to list all the
competencies that he/she possesses and has worked with. The recruit could have
certain competencies that an organization may not have a use for at that time; but it
would be useful if these are also updated in the database. Employees also improve
their existing competencies or acquire new ones through training programs. The
competency database must be periodically updated with such changes.
There will also be occasions when an employee is assigned work in an area for
which he/she has not formally trained, but acquires the competencies required on
the job. These competencies should be updated on completion of the work/project.
Update competency database once every 3 or 6 months, depending on the duration
of the projects.
Chapter 6
Role Competency Matrix—Applications
6.1 Selecting the Right Person for a Role
NetSecOps1 is a company known for its strong network security products. However,
in recent months, it has been facing problems on various fronts. Projects were getting
delayed; client dissatisfaction was on the rise; and employee morale was low. Many
people had left the company and quite a few were openly talking about leaving. In a
competitive market, it was a dangerous situation for a business to be in, especially
a company like NetSecOps.
Fortunately, NetSecOps’ management read the signals early. Although their product was technically a sound and robust one, poor work management practices and
employee attrition were affecting product delivery. This was not just hurting revenues, awkward questions were also being asked in the market about NetSecOps’
capabilities. The issues had to be addressed immediately. Network security was a
rapidly growing market and to inore the signs was suicidal signs.
One of the decisions taken by management for corrective action was to appoint a
project manager. The project manager would be responsible for planning and monitoring new feature development, controlling the scope of implementation, provide
oversight to the design and delivery of the features.
There were two options: one, to recruit someone from outside; and two, identify
a suitable person with the required expertise from within the company. After much
deliberation, it was decided to select someone from within the company. The management felt that good project management capabilities were available in-house and
the only challenge was in selecting the right person. In addition, choosing a person
from the existing pool of employees could boost employee morale by sending a signal that talent and capabilities will be recognized and rewarded. After assessment
and evaluation of various potential candidates, the choice narrowed to two senior
employees, Rajesh and Vijay.
1 Some of the company names and people names used in this book are fictitious and do not represent
any company or individual.
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_6
77
78
6 Role Competency Matrix—Applications
Both Rajesh and Vijay seemed suited for the role. They had impressive track
records of performance in the organizations they had worked with previously. They
had distinct strengths; but there were also areas that they needed to improve in.
Although Rajesh had been working with the present company for just 6 months, he
had wide managerial experience from working in large companies. He also had global
exposure and a well-earned reputation for managing complex projects efficiently.
Rajesh also had a strong academic background.
On the other hand, Vijay was an old-timer in his unit and respected by his colleagues. He was highly regarded in his present position as a technical lead. Vijay had
thorough knowledge of the organization, its people and products. His reputation was
built on his technical skills.
At first impression, both Rajesh and Vijay were good fits. The question was: who
is the better of the two? There was the apprehension that being relatively new to the
organization, Rajesh was yet to enjoy the complete trust and support of his colleagues.
But his credentials could not be ignored. On the other hand, Vijay seemed to have a
better connect with his people and had an intuitive understanding of situations.
It was not an easy selection to make. A lot was at stake and understandably,
management was anxious to make the right choice. The company was at a crucial
stage of its growth and, it was felt, the selection decision should make a positive
long-term impact. On a suggestion, and after much discussion, it was decided to use
a competency-based assessment framework to help in decision-making.
It was agreed that the project manager’s role is crucial to the success of the product.
Therefore, instead of trying to compare Rajesh and Vijay’s relative strengths (and
limitations), the management adopted a neutral position. First, the competencies
crucial for a project manager were identified. They were,
–
–
–
–
Project management
Network security domain experience
Product roadmap preparation
Java programming
These were top-level competencies, meaning that the person(s) being considered
for the role must have them. Then came the question: How would Rajesh and Vijay
be evaluated and compared for these competencies? Clearly, some objective criteria
were necessary for determining who was more suited for the role. Who was the better
of the two in each competency? To resolve this question, NetSecOps management
team took the help of domain experts and managers to define the competencies for
four levels: Trained, Experienced, Expert, and Master.
Specifying competencies for each level helped to give clarity while defining role
needs. Next, the indicators for these competencies were specified. How would one
determine whether a person is trained, experienced, expert, or a master? To address
this, the company defined competency levels for each competency that was identified. Thus, the sample competency levels for project management, network security,
product roadmap and Java programmer can be specified as shown in Tables 6.1a, b,
c, and d respectively.
6.1 Selecting the Right Person for a Role
79
Table 6.1 Defining competency levels for a project manager b network security c product roadmap
d java programmer
a. Project management
L1 (Trained)
Must have a basic understanding of project management and software
engineering
L2 (Experienced)
Must have managed projects of worth USD 500,000 per annum
L3 (Expert)
Must have managed product/project teams of minimum 20 members; and
projects of worth USD 1,000,000 value per year, meeting or exceeding the
specified project standards
L4 (Master)
Must be an expert in this area; must have managed large programs (of the value
of at least USD 5,000,000 per year) and meeting deadlines with acceptable
quality
b. Network security
L1 (Trained)
Must have a basic understanding of networking and/or should have Cisco
Certified Network Associate (CCNA) certification
L2 (Experienced)
Must have worked as a team member and/or programmer, or tester in network
security-related projects
L3 (Expert)
Must have designed and developed at least one network security related project
L4 (Master)
Must have conceptualized, designed and led the development of network
security projects
c. Product roadmap
L1 (Trained)
Must have knowledge of product roadmap and business case preparation
L2 (Experienced)
Must have participated in roadmap and business case preparation for at least 5
(five) products
L3 (Expert)
Must have prepared roadmap and business case for at least 1 (one) product
L4 (Master)
Must have prepared roadmaps, business cases for at least 3 (three) products
d. Java
L1 (Trained)
• Should have completed 4 weeks of in-house training on software engineering
basics
• Should have minimum of 2 months of C programming experience
• Should have written a program size of 1,000 LOC minimum
L2 (Experienced)
• Should have completed 4 weeks of in-house training on software engineering
basics
• Should have programmed in C for at least 2 years in the past 3 years and
programs of size 10,000 LOC
L3 (Expert)
• Should have completed 4 weeks of in-house training on software engineering
basics
• Should have at least 5–6 years’ programming experience in Java with
program size of 500,000 LOC
• Should have participated in large-scale systems (2 Million LOC) development
for at least 2 years
L4 (Master)
• Should have completed 4 weeks of in-house training on software engineering
basics
• Must have programmed in C for at least 5 years in the past 6 years and
programs of size 500,000 LOC
• Must have trained/groomed at least 10 programmers
80
6 Role Competency Matrix—Applications
Table 6.2 Required competency levels for project manager
Competency name
Required competency level
Project manager
Project management
Expert (L3)
Network security
Expert (L3)
Product roadmap
Experienced (L2)
Java
Experienced (L2)
The indicators for defining competency levels will vary from company to company. What is crucial here, however, is the way these competencies are measured: they must be clearly understood by the employees being evaluated. Thus,
people managers should ensure that the measures for competency levels are
made a part of the competency specifications for the role.
While the competency levels are being defined, one important point needs to be
addressed—the need to have realistic expectations. For example, is it necessary for
the project manager to be at L4 (Master) in all competencies specified for the role?
That would be ideal, of course, but it is virtually impossible to find someone at Level
4 in all the specified competencies. Hence, a more practical approach is needed.
Thus, the project manager need not be an excellent programmer; he (or she) must
possess a certain minimum competency at programming so that he (or she) performs
in the role of project manager. Keeping this in the mind, the competency levels are
defined by the company as shown in Table 6.2.
Other questions might arise, such as
• Does it mean that if Rajesh (or Vijay) does not have required Java skills, he cannot
be considered for project manager?
• If they do not have required level project management competencies, can they still
be considered for the role?
The answer to both questions is no. Let us understand why.
Before deciding on who would make a better project manager, it is necessary
that management knows the extent to which each competency is critical to the role.
As we mentioned earlier, all people cannot—or need not—be masters at everything.
Therefore, each competency must be given a suitable “weight” to reflect its relative significance to the role. Table 6.3 shows a rating scale2 which was used to
allocate “weights” to each competency for the example being discussed here.
With suitable weights allocated to each competency, it was decided that the project
manager should have
2 NetSecOps
decided that a five-point scale suited their requirements. Some companies may prefer
a nine-point scale.
6.1 Selecting the Right Person for a Role
81
Table 6.3 Rating scale
Rating
Description
5
Must have. This competency is critical for the role. Without this, the person cannot
perform
3
Should have. This competency is needed for the person to perform efficiently.
Without this, the person can perform, but he or she may not be efficient
1
Could have. Having this competency will give the person an advantage, but it is not
indispensable for the role
Table 6.4 Competency list with ratings for project manager
Competency name
Competency level
Rating
Project manager
Project management
Expert (L3)
Must have (5)
Network security
Experienced (L2)
Should have (3)
Product roadmap
Experienced (L2)
Should have (3)
Java
Experienced (L2)
Could have (1)
– “project management” competency at “expert” level, which is a “must have” for
the role
– “network security” competency at an “experienced” level, which is “should have”
for the role
– “product roadmap” competency at an “experienced” level, which is “should have”
for the role
– “java” competency at an “experienced” level, which is “could have” for the role
Table 6.4 shows the final competency list with the ratings against which the
candidates would be evaluated.
The last step is to compute weights based on the ratings given to each competency.
This is done by dividing the rating for that competency with the sum of the ratings
for the role (Table 6.5).
The required data for evaluating Rajesh and Vijay for their suitability as Project
Manager is now ready.
Table 6.5 Final competency ratings
Competency name
Competency level
Rating
Weights
Project manager
Project management
Expert (L3)
Must have (5)
5/(5 + 3+3 + 1) = 0.42
Network security
Experienced (L2)
Should have (3)
3/(5 + 3+3 + 1) = 0.25
Product roadmap
Experienced (L2)
Should have (3)
3/(5 + 3+3 + 1) = 0.25
Java
Experienced (L2)
Could have (1)
1/(5 + 3+3 + 1) = 0.08
82
6 Role Competency Matrix—Applications
Selection of Project Manager
The first step is to calculate the competency gap for the role. The RCM for competency
gap is shown in Fig. 6.1.
Rajesh’s competency gap was seen to be −0.02, while it was −0.3 for Vijay, which
is significantly higher. Because Rajesh’s competency gap was significanty less than
Vijay’s, it was obvious that he was a better fit for the role than Vijay. This information
helped NetSecOps’s management to make their selection decision.
Ideally, the competency gap of an employee for a specified role must be 0, meaning
that there should be no competency gaps. In practice, it is difficult to get a perfect
fit—the person will be either overqualified or may be lacking in a few areas. Hence
the aim should always be to identify the person who is the best possible match, which
means that the competency gap is the least among all persons being considered for a
role. However, it needs to be stressed that although the competency gap is an important
factor in decision-making, it is may not be the only one. Other considerations may
play a significant role: location preferences of the candidate, salary, benefits package,
etc.
It can happen sometimes that the competency gap is too large to help in making an
easy decision. Here, it needs to be appreciated that the purpose of RCM is to provide
objective information and not make decisions, which is the job of management. In this
case, the management has been presented with objective and evidence-based competency information. It is now up to the management to make a selection decision, or
even whether to evaluate a wider pool of potential candidates. Nonetheless, it is clear
from the example that RCM has helped the management to take an informed decision—to go ahead with the selection and invest in training to narrow the competency
gap, or repeat the selection process with more candidates.
Competency index and competency gaps are useful indicators. But one also needs
to understand that it is not always possible to find people with the required CI.
Sometimes, positions must be filled quickly and management may not have the time
Employee
Rajesh
Vijay
3
1
2
1
2
1
1
4
-0.02
-0.3
Competencies
Roles
Project manager
Project
management
Network
Security
Product
roadmap
Java
3
2
2
2
0.42
0.25
0.25
0.8
Fig. 6.1 Calculating competency gap
6.1 Selecting the Right Person for a Role
83
to wait until the right person is found. Additionally, expectations of salary, aspirations
of employee, etc., also play a role in influencing decisions. But even here, CI and
CG help management to make an informed decision.
6.2 Augmenting Competencies
An India-based consulting group was tasked with assisting a Japanese IT company
to improve its software processes. The consulting group identified competencies
required for the project (Table 6.6) and then prepared the RCM for the project.
Two consultants, Prasad and Akhilesh, were the potential choices (Fig. 6.2). Their
respective competency gaps were found to be −0.14 and −0.02 for lead consultant
and consultant roles. The group was confident that the team was well-placed to
execute the project. But there were other challenges, such as lack of knowledge of
Japanese, and lack of familiarity with the Japanese way of doing business. No one
on the project team knew Japanese and the way the Japanese did business. Though
the lead consultant, Prasad, had learnt basic-level Japanese, it was not enough for
the project.
Obviously, the competency gaps for proficiency in Japanese and familiarity with
Japanese work culture could not be addressed with the conventional approach. It
was very difficult to find technically competent people who knew Japanes. Hence
two additional roles were identified: that of an associate, who would be a Japanese
national and was familiar with the way the Japanese did business and the second, an
interpreter-translator for helping the consultants with oral and written communications, and documentation. By including these roles in the team, the role and competency specifications were revised (Table 6.7). Separate RCMs were made for these
additional roles.
Table 6.6 List of roles and competencies required for the consulting project team
Role(s)
Competencies
Competency level
required
Weights
Lead consultant
Lean methodology
Consulting
Japanese language
Japanese business
knowledge
Change management
Expert (L3)
Expert (L3)
Expert (L3)
Expert (L3)
Experienced (L2)
0.28
0.28
0.17
0.17
0.11
Consultant
Lean methodology
Consulting
Japanese language
Japanese business
knowledge
Change management
Expert (L3)
Experienced (L2)
Trained (L1)
Trained (L1)
Experienced (L2)
0.28
0.28
0.17
0.17
0.11
84
6 Role Competency Matrix—Applications
Employee
Prasad
Akhil
esh
4
3
3
2
1
1
0
0
2
3
-0.14
-0.26
0.1
-0.02
Competencies
Roles
Lean
methodology
Lead
consultant
Consultant
Consulting
Japanese
language
Japanese
business
knowledge
Change
management
3
3
3
3
2
0.28
0.28
0.17
0.17
0.11
3
2
1
1
2
0.28
0.28
0.17
0.17
0.11
Fig. 6.2 Role competency matrix of the consulting team
Table 6.7 Revised roles and competencies for the consulting project team
Role(s)
Competencies
Competency level
required
Weights
Lead consultant
Lean methodology
Consulting
Change management
Expert (L3)
Expert (L3)
Experienced (L2)
0.38
0.38
0.23
Consultant
Lean methodology
Consulting
Change management
Expert (L3)
Experienced (L2)
Experienced (L2)
0.38
0.38
0.23
Interpreter
Japanese language
English language
Interpretation skills
Expert (L3)
Expert (L3)
Expert (L3)
0.33
0.33
0.33
Japanese business
associate
Japanese business
knowledge
Japanese language
English language
Expert (L3)
Expert (L3)
Expert (L3)
0.33
0.33
0.33
The revised RCMs for consultants (Fig. 6.3a) show a positive competency gap
of 0.1 and 0.06 respectively for Prasad, the lead consultant, and Akhilesh as a consultant. An interpreter, whom we will call Ito-san”, was recruited for the project.
Her RCM shows a positive competency gap of 0.08 (Fig. 6.3b). The RCM for the
Japanese business associate, Sato-san, shows a positive competency gap of 0.08
(Fig. 6.3c). Overall workforce competency gap of the project team post, including
that of the interpreter and Japanese business associate, was 0.08 (Table 6.8). The
positive competency gap indicated that the team had the required competencies for
the project. Processes were put in place to ensure that during implementation of the
6.2 Augmenting Competencies
85
(a)
Employee
Prasad
Akhilesh
4
3
3
2
2
3
0.1
-0.04
0.19
0.06
Competencies
Roles
Lean
methodology Consulting
Lead consultant
Change
management
3
3
3
0.38
0.38
0.23
Consultant
3
2
2
0.38
0.38
0.23
(b)
Employee
Ito
4
3
3
Competencies
Roles
Interpreter
Japanese
language
English
language
interpretation
skills
3
3
3
0.33
0.33
0.33
(c)
0.08
Employee
Sato
4
3
3
Competencies
Roles
Japanese
Japanese
English
business
language
language
knowledge
Japanese
business
associate
3
3
3
0.33
0.33
0.3 3
0.08
Fig. 6.3 a RCM of consultant. b RCM of interpreter. c RCM of Japanese business associate
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6 Role Competency Matrix—Applications
Table 6.8 Workforce competency gap
Roles
Person
Competency gap
Lead consultant
Consultant
Interpreter
Japanese business associate
Prasad
Akhilesh
Ito
Sato
0.1
0.06
0.08
0.08
Workforce competency gap
0.08
project, the interpreter was always present at discussions with the clients, thereby
avoiding communication-related issues. The project was completed to the clients’
satisfaction and the company was also awarded the next phase of the project.
The example discussed here helps us to understand how competencies, which were
not considered in the beginning, are introduced as required to augment workforce
competencies. The competency gap for Japanese language and Japanese business
knowledge was resolved by including an interpreter and a business associate (who
was familiar with the work culture) in the project team. Although such decisions may
be driven by the needs of the situation, they can be guided by information revealed
by RCM.
6.3 Planning for Career Progression
Suresh and Brijesh are two key employees of a network security software unit. Both
were working with the company for many years and the management was keen on
putting them on a development path that would advance their careers in the company.
There were two key roles for which Suresh and Brijesh were being considered: Project
Manager and Technical Lead. The unit head had to decide on who was the better fit
at each role. Can RCM help the employee and management with making the right
decision?
The business unit’s head followed the process that was used for selecting the
Project manager (Sect. 6.1). First, the competency gaps were calculated. Then, RCMs
were prepared for Project Manager and Technical Lead with the columns showing
the specified competencies. The significance (or weight) of each competency for
the role is represented in the respective cells. The candidates were then assessed
against each of the competencies listed in the framework and the competency gap
and competency index computed and shown in the intersection cells of employee
and role.
For both project manager and technical lead, the key competencies are project
management, team management, Java, PostgreSQL. The unit head specified the competency levels for each role (Table 6.9). We see that the project manager is required
to have a competency level of 3 in project management and team management, level
6.3 Planning for Career Progression
87
Table 6.9 Required competency levels for role
Roles
Project management
Team management
Java
PostgreSQL
Project
manager
3
3
2
2
Technical lead
1
2
4
3
Java
PostgreSQL
Competencies
Table 6.10 Required competency levels with weights
Roles
Project management
Team management
Competencies
Project
manager
3
3
2
2
0.42
0.42
0.08
0.08
Technical lead
1
2
4
3
0.07
0.21
0.36
0.36
2 in Java and PostgreSQL. The technical lead is required to have a competency level
of 1 in project management, level 4 in Java and level 3 in PostgreSQL.
Subsequently, weights are provided to each competency (Table 6.10). For project
manager, the weights for project management, team management, Java, PostgreSQL
are 0.42, 0.42, 0.08, and 0.08, respectively. For technical lead, the corresponding
weights are 0.07, 0.21, 0.36, and 0.36 respectively.
The RCM was then prepared for competency index (Fig. 6.4) using past data on
the employees. The latest values of competency index indicate that Suresh is a better
fit than Brijesh for both Project Manager and Technical Lead. However, he can be
given only role. Hence, we must go into more detail to understand where Brijesh
stood in terms of his competencies.
Data was plotted to determine who was the faster learner of two. The graphs
(Fig. 6.5a) show that both to be fast learners (as measured by the rate of change in
competency index). Then, the head of the business unit tried to determine the rates of
improvement of competency index (Fig. 6.5b). This also did not yield a clear result.
Both Suresh and Brijesh did well at one point or the other.
On studying the changes in competency index for technical lead (Fig. 6.6a), the
unit head found that although Brijesh had no experience initially, his competency
index had increased quickly as compared to Suresh. To confirm this finding, he
plotted the curves for improvement in competency index for both Brijesh and Suresh
(Fig. 6.6b). The curve confirmed that Brijesh’s competencies had improved at a faster
rate.
The result helped in making a decision. Brijesh was made the technical lead and
Suresh was made project manager. Both were satisfied with the decision because
they understood the role requirements and the methods being used to assess their
suitability. Both were satisfied that the selection decision was based on objective
evidence.
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6 Role Competency Matrix—Applications
Employee
Suresh
Brijesh
4
1
3
1
2
4
2
3
0.82
0.35
0. 59
0. 7
Jan
0.36
0.06
Apr
0.46
0.19
Jul
0.69
0.31
Oct
0.82
0.35
Jan
0.27
0.27
Apr
0.3 3
0. 41
Jul
0.48
0. 52
Oct
0.59
0. 70
Competencies
Roles
Project
manager
Technical
lead
Project
Management
Team
management
Java
PostgreSQL
3
3
2
2
0.42
0.42
0.08
0.08
1
2
4
3
0.07
0.21
0.36
0.36
Historical data of competency index
Project manager
Technical lead
Fig. 6.4 Role competency matrix—competency index
6.4 Improving Competencies
Most organizations do not have the luxury of time and access to a large talent pool
for finding the perfect fit for a role. People bring certain strengths, as well as certain
shortcomings, to their jobs. Regular tracking of the changes in competency gaps helps
management to identify potential issues and take suitable competency improvement
or deployment (in some cases, redeployment) decisions in a timely manner.
The RCM framework is also useful for tracking the changes in competency gaps.
In the example being discussed here, we can see rapid improvements in Raghu’s and
Bheem’s competencies. These improvements resulted from
•
•
•
•
More experience
On-the-job training
The employees taking the initiative for self-improvement
Classroom training
6.4 Improving Competencies
(a)
89
Competency index - Project manager role
1
0.8
0.6
0.4
0.2
0
Suresh
(b)
Brijesh
Improvement in competency index Project manager role
0.25
0.2
0.15
0.1
0.05
0
Suresh
Brijesh
Fig. 6.5 a Competency index for project manager. b Improvement in competency index for project
manager
(a)
Competency index - Technical lead role
0.8
0.6
0.4
0.2
0
Suresh
(b)
Brijesh
Improvement in competency index Technical lead role
0.2
0.15
0.1
0.05
0
Suresh
Brijesh
Fig. 6.6 a Competency index for technical lead. b Improvement in competency index for technical
lead
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6 Role Competency Matrix—Applications
Sometimes, competencies do not improve at the expected rate. This can happen
due to the following reasons:
• Non-availability of sufficient time and opportunities.
• The employee’s lack of motivation to improve.
Equally important, continuous improvement in competency—at both individual
and workforce levels—gives management the assurance that the organization’s competency development plan is working well, and is delivering the desired benefits. This
will give confidence to both employees and the organization that they are prepared for
more complex challenges. However, competency index data alone may not be a sufficient indicator of this readiness. It will be necessary to examine the effectiveness of
the work done by the employee. Effectiveness can be measured in several ways. For
example, the quality of software developed by a programmer is measured in terms
of defects in the code, minimal lines of code for a feature, and the maintainability of
code.
As we saw in the example of Suresh and Brijesh, a similar staffing decision was
taken for Raghu and Bheem for selecting a project manager. In this case, RCM’s
usefulness did not end with the selection decision of project manager. Tracking their
competency indices showed that both needed to improve. Raghu and Bheem were
asked to draw appropriate competency improvement plans. They prepared RCMs for
their respective competency gaps (Fig. 6.7).
At −0.11, Raghu’s overall competency gap as project manager is small. However,
competency gaps in project management and .NET were significant (Table 6.11)
Assessment showed the competencies in which Raghu needed to improve. Since
it was not practical to improve both—project management and .NET—at the same
time, Raghu had to prioritize. Although the differences in competency level for both
project management and .NET is 1, project management was given more weight
because of the requirement of the role.
Bheem, who was made Technical Lead, showed a significant competency gap—
−0.38. The differences in competency levels were, respectively, 1, 1, 2, and 2 for
project management, Java, .NET, and PostgreSQL. Bheem was required to prepare
a competency development plan for improving these competencies. He selected two
that were more significant for his role—Java and.NET. The remaining two, PostgreSQL and project management, would be taken up in the next stage.
As we can see from Fig. 6.7, Raghu’s competency gap as project manager was
−0.31 in January; by October, the gap had reduced to −0.11. In the same period,
Bheem’s competency gap as Technical Lead role reduced from −0.61 to −0.38.
These examples show that past employee data on competency gaps can be used to
assess the progress made by employees in developing their competencies. A reducing
competency gap indicates improvement in competency.
6.5 Monitoring Workforce Competency Index
91
Employee
Raghu
Bheem
2
0
3
2
1
1
2
2
Competencies
Roles
Project
Management
Project
Manager
Java
.Net
Postgre
SQL
3
2
2
2
0.42
0.25
0.25
0.08
1
3
3
4
0.36
0.18
Technical
Lead
0.09
0.36
Historical data of competency gap
Project management
Technical lead
-0.11
-0.38
-0.25
-0.38
Jan
-0.31
-0.52
Apr
-0.25
-0.46
Jul
-0.19
-0.40
Oct
-0.11
-0.38
Jan
-0.56
-0.61
Apr
-0.47
-0.52
Jul
-0.38
-0.43
Oct
-0.25
-0.38
Fig. 6.7 Role competency matrix—competency gap
Table 6.11 Assessment of Raghu’s competency data
Competency
Weight
Required competency level
Raghu’s competency level
Project
management
0.42
3
2
Java
0.25
2
3
.NET
0.25
2
1
PostgreSQL
0.08
2
2
6.5 Monitoring Workforce Competency Index
In most businesses, senior management’s focus is on key areas like revenue, profits,
business expansion, mergers, and acquisitions. There is relatively less focus on competency management. The result is that, often, there is a belated realization that the
competencies of the employees, particularly those at senior levels, are not being ade-
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6 Role Competency Matrix—Applications
quately leveraged. The use of RCM in such situations facilitates continuous tracking
of improvements in critical competencies, as well as the acquisition of new ones, at
both employee and organization level.
Monitoring of workforce competency index for business units can provide timely
indication of increasing, stagnating, or decreasing competencies. They also provide
actionable information on the effect of new recruits, attrition, or shortage of personnel required for specific roles. Organizations must constantly track and monitor
competencies. Figure 6.8 shows the trends that are revealed from tracking and monitoring.
According to conventional wisdom, competencies should increase with experience. So, one might ask, why should workforce competency index drop as observed
with the testers in Fig. 6.8. Let us consider some scenarios in which this can happen:
Scenario 1: A business unit consists of a small number of experienced people.
Due to increased workload, a decision could be taken for recruiting more employees, mostly fresh graduates (for keeping employee costs down), who have little or
no testing experience. Though the experienced testers will remain in the team, they
will be expected to devote a significant amount of their time to train the fresh graduates. Overall, the team competency index will drop and remain at a lower value
until the new employees develop the required competencies and become productive.
Increasing team size by adding several inexperienced people will affect the team’s
competency index. Hiring decisions should take this into account.
Scenario 2: In another scenario, a product team has experienced testers. Although
competency requirements may have changed, competency development initiatives
are lagging. This will reflect in a lower competency index. For example, in a product
testing team that is experienced in manual testing, a decision to implement automated
testing for faster product delivery will necessitate improvement (or development) of
competencies in automated testing. Till this is done, the team will show low CI in
automated testing because they do not have sufficient experience. Hence, in this
case, management must invest in training to improve the competencies in automated
Workforce competency index
0.6
0.5
0.4
0.3
0.2
0.1
0
Jan
Programmer
Apr
Project Manager
Fig. 6.8 Monitoring of workforce competency index
Jul
Oct
Designer
Tester
6.5 Monitoring Workforce Competency Index
93
testing. (But some patience is also called for. Although training in test automation
tools will help improve competencies, the change in competency index will be visible
only with time as the team progresses on its learning curve.)
There are also situations where the workforce competency index will increase
over time, sometimes at a rapid rate. We will discuss a few possible situations in
which this can happen.
Scenario 1: A growing business unit has decided to diversify into a new domain
and technology. In the beginning, this unit may not have people with the necessary
competencies. Obviously, the unit will recruit people with experience in that domain
and technology. Because the unit has recruited people with experience in a specific
domain, the competency index will show a sharp increase.
Although workforce competency index may show an increase because of new
hiring, it is possible that productivity levels will drop for a short period during which
the team is settling. This may be followed by a rapid increase. Although this is a
positive sign, management should remain alert to likely impediments in the workplace
and proactively ensure consistent team performance.
But an increasing trend in competency index is not always a good sign if it does
not result in improvements in productivity and efficiency. If this is not happening,
management must examine if organizational systems and processes are the inhibiting
factors.
A Product company had recruited people who satisfied the competency requirements. However, the team could not deliver the product to the product specifications. Investigations
revealed that the organization structure was poorly defined because of which processes were
not sufficiently robust. There was also lack of accountability and communication.
Scenario 2: One company was known for its product—its messenger application
enabled workforce collaboration within the company. But it was also noticed that
many users preferred the product made by a (smaller) competitor which worked with
both voice and video over the VoIP network. Sensing a potential threat, the company
realized that it must quickly adopt its competitor’s technology. Thus, it bought out
its smaller rival. With this acquisition, company added to its workforce a large number of employees with superior competencies. This led to a significant rise in the
organizational competency index.
There is also the possibility that competency level definitions are not challenging
or stringent enough. For example, getting an 80% score in a web-based competency
training program may be an easy goal for an employee to achieve a competency
level 1. If competency levels defined by the organizations do not require much
effort to achieve, the competency index will rise quickly in a short time, which may
provide a misleading picture to management. Moreover, setting easily achievable
goals may also be reflective of a lack of ambition.
Thus, improvements (or decline) in competency index should not be seen in
isolation; it should reflect in improvements in efficiency, productivity, and business
results. Improved business results and productivity are a combination of multiple
factors of which proper leveraging workforce competencies is a vital factor. The
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6 Role Competency Matrix—Applications
Workforce competency gap
0
-0.1
Jan
Apr
Designer
Programmer
Jul
Oct
-0.2
-0.3
-0.4
-0.5
-0.6
-0.7
Project manager
Tester
Fig. 6.9 Monitoring of competency gap for a product unit
relationship between productivity and competency is discussed by Shah [1], Kuruba
[2] and Boehm [3]. A comprehensive discussion of this relationship is, however, not
in the scope of this book.
Studies have shown that competency significantly impacts employee productivity
and the quality of software. Syed Shah, in his research on “empirical characterization
of software quality’, analyzed data from 93 projects and concluded that platform
experience, application experience, language and tool experience have a significant
impact on software quality [1]. Boehm identified 15 attributes and their impact on
productivity while developing a software product of these, workforce capability has a
significant impact [3]. It goes without saying that people with relevant competencies
will produce quality software; and placing the right persons in the right roles will
help managements in building high-performance teams.
6.6 Monitoring Workforce Competency Gap
We have seen how the competency gap can be a reliable indicator of the difference
between the required competencies and the competencies available at the individual
as well as workforce level. Monitoring the competency gap at workforce level should
be an ongoing process for two main reasons. One, it helps in assessing whether training has resulted in the improvement of workforce competency and two, monitoring
helps organizations to review and redefine competency requirements to respond to
the changing business scenario. Thus, in this example, after the role competency
matrix for the competency gap for various roles is developed, the monitoring and
tracking and processes take over. Figure 6.9 shows the results of competency gap
monitoring for three roles, designer, programmer, and tester.
How does monitoring of competency gap provide useful information to managers
and decision-makers? Let us consider these possibilities:
6.6 Monitoring Workforce Competency Gap
95
• A reduction in the competency gap for a role indicates that the workforce has
acquired the necessary competencies or has improved on the ones he (or she)
has. The rate at which the gap has narrowed will help HR and people managers
to plan and discuss employee advancement and opportunities for career growth
opportunities. In the example shown in Fig. 6.9, we can see that the competency
gap of the programmers has reduced significantly. This could be the result of
competency development activities, recruitment of experienced programmers. In
either case, it gives the unit manager the assurance and confidence that programmer
competency is improving. The RCM framework also provides employees and unit
managers to quickly identify roles within or across business units that potentially
match the employee’s interests and abilities. It is in the interests of the organization
to make available suitable opportunities that motivate employees to perform.
• An increasing competency gap may indicate that the workforce is not able to
improve, or upgrade, their competencies in the roles that they are in. For instance,
in the example shown in Fig. 6.9, the competency gap for designer has been
increasing quarter on quarter. This information could be the trigger for HR and
unit manager to investigate the reasons for such an increase. Several reasons are
possible: a higher than normal attrition of designers, or designers being moved
to architect roles. It is also likely that competency requirements have changed.
Then, it is necessary for HR and the unit manager to discuss ways to reduce
the competency gap, including recruitment, training, and support. Other options,
such as moving “senior programmers” in the unit to designer roles can also be
considered.
• If the competency gap remains unchanged over a period, say 1 year, it may be an
indication that the workforce is unable to improve their competencies further and
has reached a “saturation point”. This may be a signal for unit and HR managers
to assess whether—and why—the workforce is stagnating. If there is little or no
scope for improvement in the present role, other roles should be considered that
can offer opportunities for growth. However, this may not always be a feasible
option. One of the constraints that HR manager or unit managers are often faced
with is a shortage of competent people in certain roles. It may make more sense,
operationally, and from the point of view of employee costs, to not reassign the
employee. Such decisions are optimization ones. In this particular case, if the
unit does not have enough project managers, they may want to continue with
the employees in their present roles.
6.7 Making Outsourcing Decisions
A banking organization realized that its business growth was lagging behind its peers.
The main reason was that the latter had already gone ‘digital’ and were offering digital services to their customers in a big way. For this bank, there was no option. Going
digital had become critical for survival. Moreover, the law also made it a requirement that all banks must automate their processes before a certain date. However,
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6 Role Competency Matrix—Applications
a few challenges had to be addressed. At that time, the bank did not have sufficient
competency in IT. Substantial investments were needed to develop the IT infrastructure and train people for developing in-house competencies. The bank’s options
were to develop these competencies in-house or outsource digital banking development and operations to a vendor with proven competency and experience. It could
also engage staff from vendors who would run the digital banking development and
operations under the supervision of the bank.
To arrive at an optimal decision, an RCM framework was developed for the digital
banking program. To provide digital banking experiences to its customers, the bank
had to identify the areas in which they wanted to provide banking services. Internet
banking was rapidly gaining in usage and mobile banking was also picking up. The
bank’s management decided that internet banking should be prioritized over mobile
banking. Accordingly, the roles and competencies required for digital banking were
identified. Workforce requirements were also identified—there was a need for 70
programmers and 30 testers. The required competency levels for each competency,
by role and their weights, were determined (Table 6.12).
The bank’s existing IT system was using mainframe technologies because of
which there were very few employees with the required competencies to manage
the transition (Table 6.13 shows how the competencies were distributed). Workforce competency gap for programmer and tester was −0.8, which was considered
significant. Developing competencies through training would take at least 2 years.
Considering these factors and the need to grow the business quickly, it was decided
that waiting for 2 years to develop in-house competencies was risky. The decision
was taken to outsource all programming work to vendor.
We can see that the testers had a lower competency gap (−0.35). Although the
bank’s IT department employees had good knowledge of the banking domain, there
were not enough people with experience in Selenium Testing Tools. To make optimum use of the personnel, the management decided to deploy 15 personnel from
their IT department and acquire the remaining 15 through their outsourcing vendor.
Table 6.12 Staffing and competency requirements for digital banking
Roles
Competencies
required
Programmer Java
Tester
Competency level
required
Weight
Estimated workforce
Expert (L3)
0.28
70
JavaScript
Expert (L3)
0.28
MS-SQL
Experienced (L2)
0.17
HTML/CSS
Expert (L3)
0.28
Selenium Testing
Tool
Expert (L3)
0.5
Banking domain
knowledge
Experienced (L2)
0.5
30
6.8 Monitoring Competency
97
Table 6.13 Competency levels of the bank’s IT team
Roles
Competencies required
Competency level of
employees
Workforce competency
gap
Programmer
Java
L0–40
L1–20
L2–10
−0.80
JavaScript
L0–40
L1–20
L2–10
MS-SQL
L0–40
L1–20
L2–10
HTML/CSS
L0–40
L1–20
L2–10
Selenium Testing Tool
L0–40
L1–20
L2–10
Banking domain
knowledge
L1–10
L2–25
L3–20
L4–5
Tester
−0.35
6.8 Monitoring Competency
Why is it necessary to monitor?
Competencies are not static; they tend to improve with experience. Additionally,
when employees are seconded to training programs, they acquire new competencies
or improve existing ones. Thus, competency assessment cannot be a onetime or infrequent activity; rather, organizations must ensure that it is done at regular intervals
to track and monitor changes in employee competencies. After a few months on the
job, a beginner can no longer be regarded as one. With experience his/her competencies will improve and the employee will be expected to contribute and add value
in the team. There will be a significant difference in the competency levels between
a programmer with 2 months’ experience and one who has been working for a year.
One must also remember that competency levels will drop if certain competencies
are not used.
How does the gap narrow or widen with experience?
The competency gap for an individual will reduce if he (or she) has been working
with a product, technology, or domain over a period. It also happens that once the gap
becomes insignificant, employees may feel that they are stagnating and hence, seek
new challenges. A small competency gap can be seen by management as a signal the
employee needs to be given new roles for his (or her) advancement. At the workforce
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level, the competency gap can be narrowed by recruiting people with the required
competencies or developing competencies of the existing workforce.
Rapid advances in technology tend to have a disruptive effect in the IT industry.
Several “blue chip” companies of a few years back are extinct today because they
failed to sense the changes in time. By the time they responded and tried to develop
new competencies, they had already become irrelevant in the market.
How does the monitoring work?
One key challenge faced by HR in several organizations is in maintaining and updating its competency database. There are two main reasons: one, the absence of a supporting process and two, lack of awareness among employees of the need—and motivation—to keep their competency information up to date. It is very likely that they
do not see any benefit in this activity. Hence, company management systems must
proactively address this issue and establish processes that will facilitate employee
participation in keeping workforce competency information current and relevant.
Regular updating of the competencies will be necessary for fulfilling the objectives
of RCM and tracking changes in the competency index and competency gaps of the
employees, business units, and the organization can be monitored to understand how
the competencies are changing.
The frequency with which employees update the competency database could vary
from one month to six months. This depends on the company’s need. For tracking certain competencies, such as machine learning and cloud computing, monthly updating
may be necessary. For established and ‘old’ technologies like Java and COBOL, a
frequency of 6 months will be adequate. Then again, because they learn faster, beginners may need to update their competency information more frequently than their
more experienced colleagues. In general, however, this depends on organizational
needs and policy. One rule of thumb is to update the competency database at least
once every quarter.
6.9 Benefits of RCM
RCM is of immense value in various ways. It helps organizations by assessing
employee development needs and to plan improvement programs. The examples
in this section show how.
• Performance monitoring (Monitoring and assessing employee performance)
Most companies regularly monitor and measure employee performance. By using
the RCM framework, they can make an objective assessment of the impact of competency development activities for their employees. RCM enables a reliable feedback
mechanism for assessing the effectiveness of competency development activities
as reflected in improved employee performance. Although it is difficult to directly
attribute an increase in employee performance to a competency development activity, RCM helps to establish transparent mechanism for objective measurement of
6.9 Benefits of RCM
99
improvements in competency and performance, which benefits both organization
and employees. An example will help to understand this point better.
An IT services organization had the practice of monitoring productivity post- completion
of training programs. The HR department would periodically seek feedback from project
managers on improvements in the performance of employees who were seconded to training
programs. This was usually done every six months or one year and the feedback provided
insights on two important aspects: one, if training contributed to improved on-job performance of the employee and two, if the training methodology and/or contents needed changes.
In the same organization, productivity data was being compiled manually by the software
engineering process group. However, with increasing workforce strength, the number of
employees in need of training also increased. Obviously, training had to address the need
for scale. This was done by shifting from classroom-based methods to computer- and videobased activities. With online assessment tools, the organization could now assess the understanding and knowledge of employees on specific subjects and topics. Using this approach
in combination with RCM would certainly benefit the company by helping to monitor and
tracking changes in competencies of the workforce, and correlate these with employee performance. Further, the employee will also get a clearer view of how his/her competency has
contributed to company performance.
• Competency development (by developing and aligning individual competencies
to business needs)
We are living in the digital age. IT companies, especially those providing services,
must ensure that their employees are competent in the use of a range of digital
technologies.
In one IT services company, most personnel were not familiar with the latest digital technologies and preferred to work with legacy platforms. As a first step, the new CEO moved
to increase the levels of digital awareness of all employees. A basic computer-based training program was arranged, which was made mandatory for all employees to attend. This
foundation course motivated several employees to take more advanced courses, such as
implementing digital solutions, etc. The result was that, in a short time, a substantial number
of employees acquired diverse digital skills. This became the foundation for the organization’s rapid expansion. It was not long before a separate business unit was formed which
offered high value-added digital solutions for various business domains.
• Hiring (recruiting the right people is key to business success). People with the right
competencies, and who are suitably empowered, are valuable assets. Organizations
often fail because of wrong hiring decisions, or because of insufficient valueaddition by key employees. People with mismatched skill sets are often a liability.
RCM can add great value by assisting management in identifying people who
are best suited for a role in the organization. This helps in two ways: it helps to
identify the competencies required for a role and then making the selection process
transparent and objective through clear communication of role requirements and
selection criteria.
• Entering New Business Domains. RCM is a useful tool for evaluating existing
organizational competencies before committing investments and resources for new
business domains.
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6 Role Competency Matrix—Applications
A cognitive product development unit expanded its business into a new domain. The competencies required for product development, such as machine learning, and product development experiences were available. However, the unit did not have the necessary depth
of domain knowledge which had to be acquired through either hiring or in-house development. Both options had time and cost implications. It was decided to acquire these competencies by hiring people with the required domain expertise. The cost impact was significant,
but the company was able to develop the product and penetrate the market in a short period,
which gave it a significant competitive advantage. This would not have been possible had
the management decided to develop the competencies internally.
Today, organizations evaluate their competencies at a broad level before deciding
on entering into new markets or domains. RCM can help in making more informed
decisions by highlighting competency gaps and needs. In the long term, such information has the potential to reduce costs and improve returns on investment.
• Outsourcing (Make timely outsourcing decisions)
In the example of the banking company outsourcing its IT services, we saw how RCM
assisted the management in making a decision which was based on evidence. Such
decisions, which are based on quantitative competency data, instill confidence in the
management to take crucial strategic decisions. In this example, the management was
aware that market penetration is time-sensitive and hence it was imperative to consider the time (and accompanying costs) needed to develop in-house competencies
before deciding to outsource.
RCM provides valuable inputs to management for engaging with vendors, and
choosing the appropriate model––whether to outsource completely or work collaboratively with the vendor. In the completely outsource model, RCM provides information about the competencies that must be completely supported by the vendor. In the
collaborative model, the competencies already available in-house are complemented
by the competencies of the vendor so that the competency gap for the function is
reduced to an insignificant level.
In our example of the bank, we saw that the organization did not possess the
core competencies required for digital banking because of which it decided to
outsource its IT operations and services. Another scenario is possible in which
specialized functions are outsourced because they are either too costly to acquire or
are not core to the company’s operations. Cybersecurity is one example. Typically,
banks are not equipped to devote attention and resources in the never-ending game of
catchup in the field of cybersecurity. In-house cybersecurity infrastructure requires
substantial investment. It makes better business sense to outsource this work to a
vendor for whom cybersecurity is a core competency.
References
1. Shah, S. (2014). Empirical characterization of software quality. Ph.D. thesis, Politecnico di
torino, Italy. Retrieved from http://porto.polito.it/2537291/.
References
101
2. Kuruba, M. (2005). Productivity loss reduction based framework for software process improvement. Ph.D. thesis, Indian Institute of Technology, Mumbai, India.
3. Boehm, B. W. (1987). Improving software productivity. IEEE Computer, 20(8), 43–58.
Chapter 7
Implementing RCM
7.1 Phases of Implementation
As it is with all major business initiatives, management commitment is key to
the sucess of RCM also. Decision-makers and managers must be convinced of
the need for a competency management system which is aligned to organizational
vision and objectives, transparent and objective, and accepted by the workforce. For
this reason, organizational vision and objectives must be properly articulated and
communicated to all levels.
Senior management personnel, particularly those responsible for strategic decisions, must demonstrate their commitment to effective implementation of RCM.
They must be both motivators and facilitators, and remain engaged throughout the
implementation process, ensuring that adequate resources are made available, effective oversight processes are in place, and that implementation proceeds according
to the agreed plan.
The HR manager of a product team had developed a competency management system.
However, the unit head did not show interest in the initiative. There was poor communication
between the unit head and HR manager. Thus, despite the time and effort invested in the
initiative by the HR manager, the project died even before it could be launched. Such instances
are not unknown. They underscore the need for a shared strategic vision among all decisionmakers, and ensuring smooth communications. Though one cannot be sure, it is quite possible
that in this case, a good people management opportunity was lost.
The decision to implement RCM reflects management’s intent to shift to a
quantitative-based and objective approach to competency management that would
help in achieving the company’s business objectives. The RCM program requires
commitment and focus, as well as investments in time, people and money. Therefore, this decision must be taken only after thoroughly assessing present status,
current and future competency requirements and gaps, and the expected benefits.
Special attention must also be given to issues related to governance because of their
potential to distract decision-makers and consequently, undermine the effectiveness
of RCM.
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_7
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7 Implementation of RCM
Strategy
Prepare
Pilot
Scale
Sustain
Fig. 7.1 Stages of RCM implementation
Once the decision to implement RCM is taken, the first step is to clearly communicate the purpose and objectives of the initiative to all employees of the organization. In
addition, the management must commit the necessary resources—, budget, people
and IT support.
Generally, implementation of RCM will pass through five stages (Fig. 7.1). The
approach to implementing RCM will depend on organizational size in terms of number of employees, structure and culture, number of locations and their geographical
distribution and other factors which may be company-specific.
The organization has sound people processes. Most organizations will mature
as they grow. Over time, certain practices and ways of working are formalized into processes. The main objective of process is to improve operational
efficiency, increase employee productivity, transparency and accountability.
People practices vary from company to company; however, an organization
that wants to introduce RCM must have robust, well-documented processes,
particularly in the areas of recruitment, staffing and workforce competency
development.
Organization mood. Organizational culture must be conducive to change. A
hostile work environment, or one in which there is mutual distrust and suspicion between employees or between the workforce and management, is not
conducive for RCM. In such scenarios, managements must first improve people practices and employee relations. Employees must be made to feel that they
belong, and that they have an important stake in the company’s growth.
In some of the projects that the author has worked in, the team members were
generally not open while providing feedback or raising concerns. It took a considerable amount of effort and time to overcome their diffidence and earn their trust.
In fact, the project began to progress faster only after our interactions became more
open.
Employee engagement is a two-way process. It is the responsibility of managers to instill confidence and trust in their colleagues so that they can express
themselves freely and raise their concerns without the apprehension that they
will be victimized. Employees must also understand that they can, and must,
express themselves freely on matters that concern their and the organization’s
wellbeing. Feedback must be encouraged by the management. Many people
are reluctant to provide feedback in a common forum because of shyness or,
perhaps, they feel that they will not be taken seriously. Even worse, there could
7.1 Phases
105
exist the fear of victimization. It is the manager’s job to find ways to encourage
everyone to participate.
Performance and compensation management cycle. Good performance must
receive quick appreciation. Organizations using RCM must also design a system of rewards (compensation increase, incentives, or other methods) that will
facilitate early acceptance of the competency management system.
Organizations are continuously trying to occupy a niche position in their markets. There are several reasons for this and it is not possible to discuss them
here. However, companies need to invest in developing competencies at both
employee and organizational level to develop and sustain their ‘niche’ markets. Offering salaries and incentives which match—or are better than industry
norms—will motivate employees to put in the necessary efforts to acquire vital
competencies. For example, if a company realizes that there is a high demand
for implementation of machine learning products, it must develop the appropriate workforce competencies if it wants to establish. If its employees are
offered suitable incentives to learn, there is a strong likelihood that they would
be motivated.
A proper program structure is key to successful implementation and fulfilment of
program objectives. A typical structure is shown in Fig. 7.2. The governance team is
represented by the program sponsor, who is usually at the level of CIO, the heads of
business unit and HR.
First, a taskforce is formed which has the responsibility of implementing RCM.
Without a fully-engaged taskforce, it is not possible to bring a focused effort into
the implementation process. If the implementation is left to the heads of business
units and project managers, they will not be able to devote the time and attention
necessary to make the program a success.
Governance Team
Program sponsor, Business unit head(s), HR head
Taskforce team
Program manager
Team members*
Consultants*
Business unit 1
Business unit 2
Business unit 3
Project A
Project A
Project A
Project B
Project B
Project B
•
Project C
Project C
Project C
•
Fig. 7.2 RCM program implementation team structure
Human resource
department
Team members will have representation from HR
department, project managers, technical manager,
project team members
Consultants with RCM implementation experience.
They can be internal / external to the organization and
engage them as required
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7 Implementation of RCM
The taskforce is a cross-functional team and should be as representative of
the workforce as possible. It may comprise people from various departments and
functions of the organization—HR, project management, technical managers, and
project members. The taskforce is led by a program manager who is responsible for
implementing the program. The taskforce is discussed in more details in the subsequent sections of this chapter.
The Program Manager plays a key role: he/she is responsible for planning, managing the stakeholders, and driving change. His (her) team members on the taskforce
must be fully familiar with RCM and its implementation methodologies because they
will be working with the business units for implementation and guiding users. The
taskforce’s responsibility usually ends with completion of the pilot implementation,
which is usually after a specified number of competency data sets are collected and
analyzed.
Usually, the HR department closely works with the taskforce during the implementation cycle. This is necessary because it is the custodian of the company’s people
management processes and post-implementation, it will be responsible for continuing RCM processes. It is also possible that HR will be responsible for implementing
RCM across the organization. However, primary responsibility for implementing and
sustaining RCM in the business units is the responsibility of the respective unit heads.
Once the taskforce is formed, the first step toward implementation of RCM is to
decide on the implementation strategy Fig. 7.1 is a graphical representation of the
various stages of the implementation process. We will discuss each in detail.
7.1.1 Strategy
• Assessment
Formulation of strategy begins with an exercise to assess company’s existing competency management system. Assessment should address the crucial question: Is the
system aligned to organizational needs—present and future? The results of assessment will determine implementation strategy—RCM could be introduced companywide or in phases, beginning with one location, business unit or project team and
then extending it to the others.
In the assessment stage, the organization structure is reviewed and issues of
role overlap, role clarity and accountability are resolved. The heads of business units
and critical functions may also be involved at this stage because their understanding
and acceptance of RCM—and commitment to the program—is essential. Communication at various levels, as well as across levels, will play a key role at every stage
of the implementation. Concerns with organization culture and connected issues are
also addressed.
Assessment is also done of the readiness of various departments/business units
for adopting RCM. This is usually done with the help of an employee survey
using a questionnaire that is designed to elicit information about employee awareness,
7.1 Phases
Innovators
107
Early
Adopters
Early Majority
Late
Adopters
Laggerds
Fig. 7.3 RCM adoption lifecycle
attitudes and readiness for change. The response scores are ploted an ‘adoption curve’
(Fig. 7.3), which shows which business units and project teams are ready for the RCM
framework. The responses also help to identify the project teams (or groups) in which
the pilot can be implemented with a high chance of success. Such teams are usually found in the innovation segment of the curve.
However, management must also give due consideration to constraints, and find
ways to overcome or work around them. Some project teams may be interested in
RCM because they genuinely feel that they would benefit; however, they may not
be in a position to spare the time and resources for implementation. Others may
show willingness and may not be constrained in any way but would prefer to ‘wait
and watch’, meaning that they would like to see the outcomes of a pilot before
agreeing to implementation in their teams (or the business unit). In fact, this may be
predominant attitude in the organiation. There is also the likelihood of a significant
few that would be eager to start early. Also likely are individual employees and
project teams which are not willing to change but will do so because they have been
ordered to. Thus, selecting the project team or business unit for the pilot is largely an
optimization exercise.
Figure 7.3 also tells us about the range of attitudes that can exist in an organization. This is normal. Hence, the adoption curve should not be used to judge an
employee’s ability or attitude towards RCM. Its only purpose is to guide management in decision-making, and in developing an appropriate implementation strategy
which will include suitably-designed training and orientation plans, timelines, etc.
Employees may also expect to be provided an assurance that their responses in the
assessment exercise will not be a part of their appraisal. Instead, the sole aim of
assessment should be to help place the responses into distinct categories like early
adopters, early majority, late adopters, laggards, etc. Such categorization is useful
for determining the employees’ appetite for change and willingness to adopt new
methods. It is also useful for identifying employees—or groups of employees—who
may require extra help or support, or even those who can work as change agents.
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7 Implementation of RCM
• The Approach to Implementation—to start Small or use the Big-Bang
Method?
There are two broad approaches for implementing RCM. One is the big-bang
approach; and the other is to start small, in which implementation is done in
one section of the company, project team or business unit. In the latter approach,
with experience of the pilot and evidence of positive change, other departments and
employees are included in the scope of RCM. ‘Starting small’ involves less risks
and does not cause much disturbance in day-to-day working. Moreover, problems
that arise during implementation are usually localized and can be resolved quickly.
Starting small also helps in obtaining valuable feedback and learning, with which
improvements and corrective actions can be incorportaed when the scope widens.
Table 7.1 explains the main differences between starting small or using the big bang
approach.
Some company managements prefer the ‘big-bang’ approach [1]. Here, implementation takes place company-wide at the same time. The main advantage with
this approach is that it takes less time and involves everyone in the organization.
However, the big-bang approach requires careful and detailed planning. The need
for management focus and engagement, even if it is for a shorter duration, is also
greater. Implementation issues with the ‘big-bang’ approach have greater potential
for disruption and affecting employee morale. Thus, more effort and resources are
required to address employee resistance when the big-bang approcch is used. Despite
these risks, many organizations have introduced major changes and achieved their
objectives with the big-bang approach. This approach is recommended for a small
to medium sized organizations.
While starting small, it is important to decide the optimum ‘sample’ size (of
departments, business units or project groups) for implementing the pilot. The following guidelines should be useful:
• Identify departments/units/projects where implementation will be quick and effective (the Morale Boosters)
• Identify departments/units/projects of which individual employees will act like
brand ambassadors for RCM. (The Inspiration)
Organizations, which do not have the experience of managing big changes and
are hence not ready to handle the risks, can consider adopting the safer approach
by starting small. Also, this approach is recommended for medium to large sized
organizations.
• Stakeholder management:
Management involvement and their active participation is key to successful implementation of the RCM program. However, it is equally important to identify
stakeholder expectations and address them. Stakeholder analysis is a widely-used
method to understand expectations and attitude towards the program. In this, the
first step is to identify all stakeholders who will be involved in the implementation and are likely to be affected—CEO/COO, HR Head, HR team, Business unit
head, project managers, employees. The next step is to assess their interest in the
7.1 Phases
109
Table 7.1 Differences between incremental approach and big-bang approach
The Start-small (incremental)
approach
The Big-bang approach
Scope for implementation
Implementation begins with a
project team or a small
number of project teams
The entire business unit or
organization is involved.
Program planning and risk
management
Incremental approach allows
the organization to learn from
experience. It also requires a
moderate to low level of
planning. Lessons from
failures can be incorporated
in subsequent iterations;
hence the impact of program
failure is minimal
Intensive and careful
planning is required. Poor
planning can lead to program
failure; and thus its impact on
the organization is also high
Program implementation time
Implementation of the
RCM program may be slow
since only few projects are
included in implementation at
a time. Thus, program
timelines will be extended.
Overall program
implementation timelines
will be shorter as all the
projects are included in
implementation at the same
time. Therefore, the outcomes
of implementation are more
likely become visible across
the organization in less time
than with a start-small
approach
Organization focus
Due to longer timelines,
ensuring organizational focus
on the program is a critical
need
Considering the shorter
program implementation
timelines, it is relatively
easier to maintain
organizational focus
Change impact and effort
Impact is restricted to
selected projects. The effort it
takes to implement the
program is also less. The
impact on day-to-day
activities of the team and any
dip in productivity is limited
and disruptions, if any, are
containable
Impact of change is across
the organization and can,
sometimes, result in
disruption of day-to-day
activities and dip in
productivity of teams
program and their likely influence on the outcomes of the program. Depending on
their interest in the program and the level of their influence, the stakeholder can
be grouped in four categories (Fig. 7.4).
– Stakeholders who have a high level of influence on the outcome of the program
and are deeply interested must be actively engaged. They include, for example,
business unit heads whose buy-in and influence is crucial. They must be actively
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7 Implementation of RCM
engaged with because they are likley to be the promoters of change within the
organization.
– Stakeholders who are interested in the program but whose level of influence is
low. They must be kept informed about the program on a periodic basis. For
example, a project manager whose project has been identified for the pilot is a
key stakeholder. S/he will be interested in this program, as it has the potential
to simplify people management problems, but s/he may not have much influence on implementation strategy and timeline. Stakeholders in this group need
to be periodically updated on program status.
– Stakeholders who have high level of influence but do not have much interest
in the program. They must be kept satisfied. They may include some heads of
business who exercise a strong influence, but may not appear to show too much
interest in the program. Such people must regularly be updated on project status.
– Stakeholders, who have low levels of influence and are not very interested. This
group usually includes disinterested employees or those who are not involved
in implementation. With this group, occasional engagement through periodic
communications is sufficient.
High
Low
Level of influence on the program
• Avoid disruptions
It is advisable to avoid concurrent implementation with other programs or other
organizational initiatives which impact people. Mergers or acquisitions, outsourcing exercises, organization restructuring, etc. can potentially affect RCM because
they divert the attention of both management and employees. Moreover, they may
also result in redefining some of the key roles and affect, even if temporarily,
employee morale. Hence, implementation of RCM during such times must be
avoided.
• Selecting the pilot batch
If the decision has been taken in favor of the start-small approach, the next step
is to identify the business unit/or project group that is most suited for the pilot
Keep them satisfied
Engage with them occasionally
Low
Manage them closely
Keep them informed as and
when important milestones are
achieved
High
Level of interest in the program
Fig. 7.4 Stakeholder analysis graph
7.1 Phases
111
implementation, which is usually the ones that have high chances of achieving the
objectives of RCM. The projects, which were identified as innovators and early
adopters in Fig. 7.3 are the best candidates for the program. Ideally, the selection
of project team(s) or business unit for the pilot project should be representative
of the organization, meaning that it should include a wide cross-section of the
organization’s activities and processes. This helps in getting a better understanding
of the interdependencies between roles and functions. To explain this point with
examples,
– The project team selected for the pilot can include people who are involved in
development, maintenance and support from an applications business unit. If
the project team, or business unit, is engaged in infrastructure, then one may
want to include projects that are in high demand.
– In some companies, implementation of RCM may begin with project teams
in a business unit which has been identified to lead the organization’s strategic
growth. These teams may lack the competencies required for fulfilling their business objectives, or need to quickly upgarde existing ones. One example would
be that of a company seeking to increase its focus on cloud-based solutions,
devops, and machine learning for its growth. For this company, it may make
sense to include projects in business units in which the necessary competencies
must be acquired or developed. Implementing RCM in such projects will help
in planning for the required competencies.
• Selection of pilot
– Significance. Identify pilot projects, preferably from business
units/projects/workforce, which add significant value to business. Some
examples are, depending on the organization, applications development,
applications support, infrastructure support, etc. In some organizations, one
may consider projects in high-growth business domains like machine learning,
cloud operations, DevOps. While selcting projects for the pilot, care must be
taken to ensure that they will have minimal or no impact on the functioning of
the rest of the organization. While it may seem risky to consider high-value or
strategically important units/projects for the pilot, one needs to also appreciate
that positive results it can gain workforce attention and interest for in the
program. Choosing a unit/project that is of less significance or importance will
not help in giving visibility to the program.
– Workforce size. Including a large workforce in the pilot may make management
difficult because of possible personnel and administrative issues. Hence, the
pilot should aim at involving a limited number of employees and, at the same
time, introduce as much variety as possible to understand how various competencies are combined.
– Simple unit structures. Considering the purpose and aim of the pilot, it
is advisable to include units/projects which have a simple structure so that
the pilot project is not burdened with complicated reporting structures and
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7 Implementation of RCM
decision-making processes. Complex structures may lead to interference and
consequently, jeopardize program success.
– Stable workforce. Units/projects, which have a stable workforce or in other
words, low employee attrition, have better chances of success. People leaving
and joining project teams tend to take the focus away from the RCM program.
– Project duration. RCM takes about a year or more before its outcomes and benefits to become visible. This is because of the need to collect competency data
over a period and analyze it. Short-duration projects are not likely to yield
enough information for analysis and decision making.
– Management buy-in. Units/projects which have the support of their respective
management have better chances of success. Buy-in is faster and managements
can be expected to provide the necessary support in terms of information-sharing
and making people available for the pilot.
Why should an organization go for pilot?
• To test readiness for full-scale implementation: The pilot project tests
the organization’s readiness for the program before it decides for full-scale
implementation. Results of the pilot will provide insights about the changes
required in the program’s approach, methodology, timelines and resources.
It will also help get organization identify likely challenges and hurdles, and
have a remediation plan ready. Pilots also give management the opportunity
to review certain strategic decisions and make the necessary changes.
• To refine methodology: Feedback from employees, managers and unit heads
can help to refine the RCM methodology to improve its effectiveness. For
example, feedback from employees include around the frequency of data
collection, type of projects to be chosen, competency definition and competency assessment process.
• For better planning: Based on the experiences in the pilot, it will be possible
to make more accurate estimates of effort, schedule, costs and risks.
• For defining the measures of success: The outcomes of the project may
also indicate the modifications and refinements necessary to measure program outcomes and success. In turn, this will give management a better
understanding of program deliverables so that expectations and objectives
can be reset suitably.
• To understand workforce reaction and impact of the program: The pilot
phase will provide insights into the workforce’s reactions to the RCM program and their likely impact on business performance. There will be a better
understanding of the risks associated with the RCM program, which will
give management sufficient time to remediate.
7.1 Phases
113
• Governance and project steering
Good governance is key to the success of the program. The taskforce must be
given adequate support and guidance at the right times so that the program is
concluded satisfactorily, in terms of outcomes as well as schedule. Cross-functional
governance teams, which were set up to steer implementation, have been found to
be useful in several organizations. These teams can include the HR head, business
unit head and other key stakeholders in the program. Members of the governance
(or steering) team must be commited to the initiative because, at a strategic level
they are responsible for actively engaging with all stakeholders. They must devote
enough time to this role.
7.1.2 Prepare
Like most programs that are likely to affect employees and the organization, proper
preparation is a must. Several critical aspects must be considered:
Management Commitment
The decision to implement RCM is taken by the company management and hence
it is accountable for the program’s outcomes. Therefore, it must be unambiguous
in its commitment and support to ensure the program’s success. This should reflect
in communications to stakeholders, in which the strategic importance of RCM, its
purpose and objectives, as well as the long-term benefits for the organization, are
clearly laid out. To stakeholders at the operational level, communications may mention project duration, milestones and reasonable assurance of minimizing disruption
and timely responsive actions to mitigate risks.
• Resources
The implementation team must have complete understanding about the resources
that it can access (or will be provided): financial, people, software, logistics, and
various kinds of support that will be needed as the project progresses.
• Scope
The scope of implementation of RCM must be decided at the start of the project.
This will include the project team(s) and/or business units which have been identified for pilot. If it is felt necessary, management may also publish a roadmap
showing the stages in which implementation will take place, and the timelines.
Team Structure
The structure of the various teams should clearly show the roles and responsibilities
of the team members. This will help in both smooth implementation as well as communications. Figure 7.2, shows a typical team structure along with the responsibilities
of each team (Table 7.2).
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7 Implementation of RCM
Table 7.2 Roles and responsibilities
Roles
Responsibilities
Governance team
• To review implementation, evaluate outcomes and benefits (planned vs.
implemented), staffing and training needs
• To monitor progress and provide strategic guidance
Business unit head
•
•
•
•
Responsible for implementation in division/department/project
Makes decisions on key changes
Responsible for RCM in post-implementation phase
Reviews implementation plan and provides necessary support for
implementation at unit level
Program manager
•
•
•
•
Leads program management
Facilitates competency analysis and program planning
Review risks and initiate mitigating actions across all Departments
Responsible for maintaining program scorecard, which is reviewed
with Sponsor & Governance team
Taskforce team
• Participates in program planning
• Trains the project (or product) teams that have been included in the
scope of implementation of RCM
• Assist BU heads to define objectives and identify roles and competency
requirements
• Specifies/Review competencies and roles
• Assists the business unit’s team members to complete self-assessment
• Assists the business unit’s people managers in reviewing competency
specifications
• Publish the competency profiles of individuals/unit team members for
both competency index and gap against the roles
• Identify areas of improvement and refines the methodology for the
organization
The Metrics of Implementation Success
Program monitoring is necessary for assessing the health of the program and tracking
its progress and outcomes so that management can intervene and provide necessary
support and guidance for achieving program objectives. Program monitoring is also
helpful in anticipating problems and planning suitable mitigating actions before they
become a serious threat to program success. Therefore, suitable indicators of progress
and effectiveness must be identified. This is usually done at the start of the program.
There are two broad types of program metrics—progress metric and outcome
metric.
• Progress metric focuses on parameters like scope, cost, schedule, resources and
activities, the number of business units/projects in which RCM has been implemented or under implementation, percentage completed, etc.
• On the other hand, outcome metrics focus on program outcomes which, in this
case, could include the extent, measured as percentage, of improvement in competencies in a business unit and/or project team. The changes in competencies will be
reflected in changes in competency index and competency gaps. Other indicators
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Table 7.3 A few examples of program metrics for RCM
Progress metrics
• % of workforce covered (number of employees covered by RCM/total
number of employees in the organization)
• % of projects covered by business unit (number of projects covered by
RCM/total number of projects in a business unit)
• The number of competencies defined
• % of roles covered by business unit (number of roles covered by RCM
program/total number of roles in business unit)
Outcome metrics
•
•
•
•
•
•
•
•
•
% increase in workforce competency index
% decrease in workforce competency gap
Number of instances in which staffing has been done using RCM
Number of trainings that were planned based on RCM information
Improvement in employee satisfaction
Improvement in workforce productivity
Improvement in product quality
Improvement in customer satisfaction
Reduction in attrition rate
can also be used, such as improvement in employee productivity, success stories,
etc. The metrics are summarized in Table 7.3.
Forming and Training the Taskforce
The success of the pilot and the program depends on the effective functioning
of the taskforce. Therefore, considerable thought must go into the selection of
people to the taskforce. It must be representive of all critical functions in the
organization. The members of the taskforce are usually drawn from various
units—HR, project managers, senior team members, etc. The taskforce must be
given the autonomy to lead change.
The taskforce must also be given an end-to-end view of the program, including its
aims and objectives, implementation approach and methodology, as well as awareness of its strategic role in organizational change. Members of the taskforce must be
provided the necessary orientation and training. They are also empowered to take
certain operational decisions to expedite implementation and remove bottlenecks.
Taskforce members should possess a few key characteristics [2]:
• They must show Enthusiasm: Enthusiasm brings energy to the job. Enthusiastic
people are always ready to put in the extra effort which makes the difference
between success and failure.
• They must be Empowered: Taskforce members must be sufficiently empowered to
take quick decisions without having to wait for the organizational bureaucracy to
decide matters. Their focus must remain on driving a successful pilot and program.
They must be able to take operational decisions and implement them.
• The taskforce must be self-managing: The taskforce team members are expected to
self-organize and self-manage. The focus must be on successful implementation
of the pilot. For this, members of the taskforce must be allowed to prioritize and
allocate tasks within the team.
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7 Implementation of RCM
• Open to feedback: Taskforce members should be open to receiving feedback and
making course corrections as required. They should be able to handle workforce
concerns with empathy and without diluting the objectives of the program.
• They must be objective in their approach: They should be objective and rational
in their decision-making.
• They must be respected and acceptable: Taskforce members should be wellrespected by their colleagues in the organization. This will help them to drive
the changes with less difficulty, and make their acceptance easier.
• They must have superior people skills: This helps taskforce members to connect
better with colleagues, enabling changes to happen more smoothly.
• They must be cross-skilled: Having people in the task force who are cross-skilled
is useful for developing a more objective view and gives them a better sense of
control.
• Taskforce members should be good communicators: This means communicating
in both forms—written and verbal. It is their responsibility to get the message
across, convince people and get things done.
• Taskforce members must be problem solvers: Problems will arise. The challenge
for the taskforce is how quickly they address it and prevent it from leading to
unmanageable situations.
• Taskforce members must be committed team players: Typically, taskforce teams
are small and close-knit. Hence its members must be good team players.
Training the taskforce should, ideally, be in workshop mode which uses various
techniques like role play, case studies, simulation, etc. The workshops must include
the following elements:
•
•
•
•
•
Organization vision, business goals and objectives
Understanding RCM
RCM methodology
Team-building activities
Team structure and individual roles, authority and responsibilities
Training duration will depend on need. What is vital, however, is that to ensure that
by the end of training, the taskforce members have a comprehensive view of the
program and feel sufficiently empowered to work in a self-directed team.
Competency Information Review
The taskforce will study role definitions and competency specifications to understand their completeness and adequacy. In organizations that maintain a competency
database, the taskforce will examine its structure, frequency and methods of updating.
In addition, people processes and flow of information are also studied. The insights
from this exercise will help in planning changes required to make RCM more effective. The stress here would be on making processes and information more objective
and transparent.
The task force will also review the people processes of the organization. The
purpose here is to understand organizational training and development, recruitment,
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117
staffing, career progression, performance management and compensation processes.
Any deviations from the established processes, which were allowed for some business
units or teams will also be reviewed. Information must be freely shared with the
taskforce.
Detailed Implementation Plan
The implementation plan is determined by the approach—whether the program will
‘start small’ or be a ‘big-bang’ one.
The first responsibility of the taskforce is to prepare a detailed implementation
plan, including the activities that need to be carried out, as well as timelines, people requirements, etc. Broadly, activities must cover everything that is required to
implement RCM and meet its objectives. These activities—as well as their scope
and timelines—will vary with company, and depend on specific needs, number of
employees, locations and other company-specific factors. The plan must also identify
the risk factors and suggest suitable mitigation actions. This plan should be shared
with the business units or project teams involved to facilitate their alignment with the
program’s timelines and objectives. Thus, an essential consideration is the availability and willingness of the selected participants to adopt RCM. As a general guideline,
the activities could include
•
•
•
•
•
•
•
•
•
•
A kickoff (or opening) meeting with participants
Conducting awareness sessions for the employees
Organizing workshops for unit heads
Review of competency definitions and/or refining them and/or including additional
competencies
Self-assessment and review
Publishing competency indices and gaps
Facilitating people-related decisions using competency index and gap.
Participating in Governance Meetings
Evaluating competencies and providing feedback
Development of software and tools for assessment, evaluation, etc.
The implementation plan must be flexible enough to allow revisions and changes
necessary for addressing issues and challenges that may arise, and which have potential to affect project timeline and objectives.
Reviewing Implementation Plan with the Head of Business Unit
The implementation plan is discussed with the business unit head (or heads). This is a
crucial first step because their support is vital to program success. During this review
all people-related and operational issues as well as concerns must be discussed and
resolved. The agenda points for discussion should include
• Helping all participants to get familiarized with the purpose, objectives and
methodology of RCM implementation.
• Explaining the roles and responsibilities of the members of the task force.
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7 Implementation of RCM
Kickoff
meeting
Awareness
Session
Document
review
Finalize the competency list
and communicate
Compute the competency
index and gap
Brainstorming session
with unit head
Define competencies (or)
Review Competencies defined
Orienting employees to selfassessment
Periodic selfassessment
Observations and
decisions
Define RCM process
Review of selfassessment
Management review
Tooling
Fig. 7.5 Pilot implementation activities
Preparing Material for Awareness and Training
Awareness and training material must be tailored to the needs of the target users
(the audience). The target users of training material include managers (business unit
heads, people and project managers and team members). Training material will be
different for the two groups. The content will cover, broadly, purpose and objectives of RCM, an explanation of competency index, competency gaps and their use
in the RCM framework, implementation approach and plan, and the benefits for
employees and the organization. For the employees, additional information about
self-assessment should be provided. In addition, a set of FAQs and their answers
may be provided.
7.1.3 Pilot
Most companies will prefer to introduce RCM through a pilot implementation. The
pilot is usually conducted with a group of projects or a business unit of the organization. Figure 7.5 shows the activities which are part of the pilot. Awareness and
training material are used to discuss implementation with employees who are participating in the project. To make implementation a more collaborative process, the
employees can be invited to specify the competencies required for their respective
roles.
After the competency specifications are reviewed and finalized, the employees
are invited to self-assess their competencies with respect to those specified in their
respective roles. Review and moderation with supervisors/managers follow. At all
times objectivity, consistency and transparency must be ensured.
7.1 Phases
119
On completion of self-assessment and review, the competency indices and competency gaps are determined. The competency gap will form the basis for tracking
the employees’ competency development in the pilot group. Self-assessment is done
at pre-decided intervals and the competency profile of the employee for the period
is generated and made available to the employee and his/her manager.
• The opening (kickoff) meeting. Formal launch of RCM pilot begins with the
opening meeting. At the start of the meeting, a presentation is made to all employees of the business unit/project teams participating in the pilot. The taskforce
explains the purpose and aim of the project, activity plan, project timeline and
expectations from each employee. The task force is also expected to respond to
queries and clarify doubts.
Some of the most frequently asked questions are likely to be about the
relationship between competency and performance management, and also
employee rewards and compensation structures. Employees may also want to know
how they are likely to benefit from RCM. It is essential that business unit heads
are part of the kickoff meeting for two main reasons. One, because they will be
responsible for sustaining the process after the pilot; and two, they are better placed
to address some of their employees’ concerns. It is a good practice for business
unit heads to answer some of the questions of the employees, thereby commitment
of unit heads to the program is demonstrated.
• Conducting awareness sessions. The kick-off meeting is followed with an
awareness session—or a series of awareness sessions—for employees and key
stakeholders. The primary purpose of awareness sessions is first to raise their
awareness levels and inform them about implementation activities and involvement
required from employees. Each stakeholder group may have different concerns;
therefore, it may be advisable to have separate sessions for each group. These
sessions should be designed considering the roles of the participants in the organization and extent of their involvement in RCM. Concerns and apprehensions over
change are natural and must be put to rest. It is good practice to record all questions
asked and how they were addressed. This record can then be published as a set
of FAQs which employees can view on the company intranet. Properly structured
FAQs can become a vital component of the communications processes for RCM.
• Document review. The document review process includes examination of role
descriptions, competency definitions and other unit/project documents that will
help in identifying competencies and roles. The document review process also
helps to identify gaps and remove ambiguities. A meeting with the business unit
head may become necessary for validating the competencies and their weights.
• Meeting with the unit head. A meeting with the head of business unit will help
the taskforce to identify the roles for which RCM must be developed and then
specify the competencies needed for these roles. Typically, the important roles
will include sales, pre-sales, customer relationship manager, program or project
manager and architects. Most organizations would have an organization structure
and, therefore, the business unit head may only be required to reconfirm the roles
and specify the competencies for each role. It is important to go into as much detail
120
•
•
•
•
•
•
7 Implementation of RCM
as possible while defining and specifying the competency levels and competency
weights so that the competency specifications are complete and unambiguous to
the employees. A discussion with people managers may also help to understand
competency tracking needs and the frequency with which competency data must
be collected to update RCM.
Specify and review the competencies. The competency specifications are
reviewed by employees for adequacy, clarity. Employee validation is needed to
ensure that the specifications are detailed enough, unambiguous and measurable
for employees to understand and assess themselves.
Finalize competency list and communicate to employees. The final competency
list is shared with the employees who will be participating in the self-assessment
process.
Orienting employees to self-assessment. Before the employees self-assess, it
may help in having an orientation meeting. This can be useful in many ways. First,
it clears doubts and apprehensions that might have arisen after the awareness
meeting. But more importantly, the orientation meeting also helps in reinforcing
management’s seriousness about change, and its commitment to supporting
the change processes. The queries raised and addressed during the orientation
meeting may also be used to update the FAQ bank. Based on this, employees
assess their competencies against the defined competency level.
Review of self-assessment. The self-assessment results are reviewed with the
unit head for validation and acceptance. Corrections are made wherever required
with the involvement of the employees concerned.
Computation of competency index and gap. After validation and acceptance of
the self-assessment results, the competency index and gap are determined for each
employee with respect to the role he or she is in. This information is presented to
the management. This finding can be accepted if the competency index and gaps
are in agreement with the management’s assessment of the employee. For example,
management can try and match past (qualitative) assessments of highly competent,
and less competent employees with the values of competency index and gap. If
there is a good match with the majority of employees assessed, it may be concluded
that the RCM framework is good enough for use in decision making. If the convergence is not satisfactory, an analysis is required to understand the reasons and
for implement suitable corrective actions (redefining competencies, etc.). Thus, it
needs emphasis here that one must be very careful while interpreting the results.
For the majority of people in the organization, the pilot may be their first exposure
to quantitative methods of assessing competencies. Hence, caution is essential.
Analysis can throw up a few unexpected results. For example, some of the
employees, who were till now considered as not sufficiently competent, may
be shown as exceeding competency specifications. It is possible that previous
assessment methods were not appropriate or complete. The reverse could also
happen. Thus, enough care should be taken while arriving at a conclusion about
an employee’s competencies.
Periodic self-assessment. With implementation of RCM, employees must
self-assess at the specified intervals. The results of each assessment are reviewed
7.1 Phases
•
•
•
•
•
121
with business unit managers. Competency indices and gaps are correlated with
project/business unit performance, and competency improvement and development needs identified. This is followed with suitable training programs or
workshops. In certain cases, management may also provide mentoring support to
some employees.
Observations. Competency index and gap values must be shared with the
employees to make them aware of their position with respect to the required
competencies. The workforce competency index and gap must be shared with the
management, which will help them to understand the unit’s (or project team’s)
competencies, what needs to be done to narrow the gaps.
Management review. Feedback about RCM from the business unit heads,
and the results of analysis of employee competency data are presented to the
organizational leadership (and other decision-makers) for review. The taskforce
also presents its implementation report for discussion and evaluation. Then, a
decision is taken on implementing RCM companywide.
Integration into organizational processes. To ensure that the changes and practices resulting from its implementation are sustained, it is necessary to integrate
RCM with the organization’s people processes. This requires the development of
practices and procedures, clearly-specified roles and responsibilities, and the competencies required for these roles. The periodicity of employee self-assessment,
and the guidelines for conducting them—as well as interpretation of the results
of analysis—must be clearly documented.
Tooling. Implementing RCM could become a logistical challenge when several
hundred/thousand employees from multiple business units, projects and competencies are involved. To make the process more efficient and less time-consuming,
tools are necessary to capture competency data and computing competency index,
competency gap at employee and workforce levels. These tools must also enable
real-time view of the use of competency metrics and trends to both employees
and management. For this purpose, the taskforce must work with management to
identify system needs and develop solutions in-house or procuring them from a
third party. Updating competency-related information periodically is a massive
task and hence, automation is unavoidable.
Many mature and large organizations maintain competency data in various ways.
In such cases, the taskforce must establish processes by which an employee’s
RCM can be developed (or updated) by accessing competency data.
Today, most training programs are conducted online on platforms like coursera
and udemy. Employees who are subscribed to such programs and complete the
courses online should be made to update their competency status with the help
of the tools implemented by organization.
Debriefing. Projects usually conclude with a debriefing meeting between the taskforce team and the project sponsors. It is no different with RCM. Debriefings help
to understand what aspects of the project could be identified as good practices and
replicated. In addition, areas or aspects of pilot that need improvement or changes
are also identified. Debriefing meetings are also necessary to place on record the
changes that were necessary during implementation. The purpose of debriefing
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is to share useful insights into the pilot implementation which influenced the
outcomes. This knowledge can help implementation teams in the planning and
execution of the next stage of the project.
7.1.4 Implementation of RCM at Scale
Discussion of the results and lessons of the pilot at leadership level signifies the end
of this stage of the project. Discussions will cover the following:
• The methodology followed and their adequacy
• The extent of alignment of results with business goals
• Learning from feedback and incorporating corrective actions in methodology.
If the results indicate that the objectives of the pilot have been met, the management may approve implementation of RCM across the organization. However,
such a decision could be influenced by other considerations—the need to provide
finance and other resources, availability of key personnel for steering the project and
strengthening the implementation teams, and the present state of employee relations.
Therefore, a few companies may prefer a more calibrated approach by going for a
second pilot, which will be on a bigger scale than the first. Factors that can influence
the decision are,
• The need to validate the approach and results of the first pilot.
• Project review may have revealed significant issues and concerns and hence the
need to test the effectiveness of corrective actions.
• A successful second pilot can provide an assurance that there will be no problems
with at-scale implementation.
Being cautious is understandable because the changes being brought in should
not cause too much disruption. At the same time, one must weigh the opportunity
costs of lengthy, piecemeal implementations.
If the decision is in favor of another (bigger) pilot, the business unit(s) or project
team(s) selected for the second pilot are, usually, more complex in their structure,
operations and employee competencies.
As shown in Fig. 7.3, the units or projects which were identified as early majority
during the strategy phase are potential candidates for adopting RCM during the scale
phase. The taskforce may review some of the units/projects, which were late adopters
and laggards, to check if they are willing to participate.
Carry out the implementation activities (Fig. 7.5) for all projects identified for the
scale phase. There are two important considerations for planning implementation on
a larger scale:
• The implementation plan: Actions taken on the feedback received from the first
pilot must be reflected in the implementation plan. These may cover one or all the
aspects—approach, scheduling, composition of implementation team, training,
7.1 Phases
123
etc. Management’s continuing commitment to ensuring the success of the RCM
project must be evident. It would be a mistake to assume that since the pilot was a
success, the rest of the implementation would be smooth. There should be no loss
of focus.
• Identifying the change agents and empowering them: Change agents drive changes
by motivating others. They bring great value in large organizations by accelerating
the change process. Change agents can motivate their colleagues through small
group-interactions, town-halls, blogging on the company’s intranet, and in various
other formal and informal ways. The change agents must be identified in the early
stages of the RCM program and be involved with implementation.
7.1.5 Sustaining RCM
RCM is not the end. As mentioned earlier, it is a framework with the help of
which organizations can make the right staffing decisions, empower employees to
take responsibility for their career progress, and develop a road map for proactive
employee development. RCM is not intended for use as a stand-alone competency
assessment tool; rather, it must be made an integral part of organizational processes
for employee performance management and development. Therefore, management
must plan for sustaining RCM. In this, the taskforce (or implementation team) has
a limited role because it is responsible only for implementation. Eventually, RCM
must be ‘owned’ to embed itself in organizational systems and processes. This is
done in various ways:
• The results of assessments done with the RCM framework must be regularly
shared with employees. They must be made aware of the correlation between
their competency information and performance. They can then be encouraged and
guided to develop their improvement plans.
• The framework must be reviewed periodically, both for its continued relevance
and to address concerns and issues as and when they are noticed. Concerns raised
by the stakeholders, especially the employees, must be addressed promptly and
effectively.
• Improvements resulting from implementation of RCM—in business performance,
employee engagement and productivity—must be acknowledged and shared with
the employees.
Communication: Timely and open communications are necessary without which
implementation will not yield the benefits that the project is aiming for. All stakeholders, internal as well as external, must be part of the communication processes.
Communications help to ensure buy-in, sustain interest and participation. Employees
are the ones who are directly impacted by the policy. Hence, all care must be taken
that communications are always positive, unambiguous and consistent.
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7.2 Implementation Approach
There are two approaches for implementing RCM—Top-Down and Bottom-up. The
top-down approach allows a high degree of management control to ensure that it is
done exactly according to specifications. However, the top-down approach can run
into problems if business objectives and strategies are not clearly explained to the
employees. This can result in poor understanding, confusion at the operational level
and consequently, unsatisfactory realization of business goals.
The bottom-up approach, on the other hand, facilitates a greater degree of empowerment at project-level. The project teams determine the competencies required to
deliver projects to the required standards. This promotes commitment and a sense of
ownership. One possible downside to the bottom-up approach is that decision-making
sometimes suffers on account of the multiple, often conflicting, proposals and suggestions that managers may receive from their teams. Managing and reconciling the
differences can take up considerable time and effort.
7.2.1 The Top-Down Approach
The top-down approach to RCM is a strategic decision. Here, the roles and competencies required in a business unit are determined at unit level. These roles and
competencies are then adapted to meet project requirements (Fig. 7.6).
We will discuss the top-down approach with an example.
A business unit has a major presence in IT services. Considering the demand potential for AIbased automation products, the management has taken the strategic decision to penetrate this
domain in the next 2 years. It is also aware that it does not possess the necessary competencies
for this venture.
A product manager and architect are identified who would build the product. The architect
has wide experience in developing large-scale, high performance, real time systems, and a
basic understanding of how AI systems are developed. As a first step towards building a team,
they identified the competencies that are necessary for product development. A consultant
was also brought on board to help in identifying the required competencies and putting in
place appropriate people processes.
The product manager, architect and consultant identified the roles required:
• A Product manager who would own the venture. He would be responsible for the
business. Therefore, the product manager is expected to prepare the roadmap for
developing the product, which includes making the product specifications.
• A Project manager who is responsible for delivering the product to the specifications defined.
• A Product architect with responsibility for architecting the solution based on the
requirements, and detailing out the design.
• AI experts who are responsible for identifying and using the appropriate AI algorithms in the product.
7.2 Implementation Approach
125
Unit Objectives
Competencies
Mapping competencies, levels to roles
Business planning
Roles
Determine weightages
Communicate competencies
Determine Competency Index and gap
Business execution
Fill competency levels by team members
Publish Unit RCM
Fig. 7.6 The top-down approach to implementing RCM
• Programmers for designing and ensuring that the code quality is high.
• Testers whose job is to test the product and assure product quality.
• A Marketing manager who will take the product to the market and develop the business (by organizing roadshows, product webinars, preparing marketing collaterals
etc.).
• Product support teams to provide support in the case of issues that customers may
raise (Since support and marketing functions will be required somewhat later in
the product life cycle, the consultant may recommend that competency analysis
for these functions and hiring be deferred to a later date).
The competencies for developing AI-based products are listed in Table 7.4.
These competencies were mapped by the Architect and Product Manager who
also identified the competency levels for each role and allotted them suitable weights
(Table 7.5).
The next step, after specifying competency requirements for each position, is
to identify people from within the organization who could fulfil them. Based on
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the competency levels of employees, as mentioned in the organization’s competency
database, competency gaps of employees with respect to the roles are calculated. This
helps shortlist potential candidates. It is obvious that for competencies in Artificial
Intelligence, the competency gaps in present employees will be large and therefore,
external hiring is necessary. For most of the other competencies, the organization
will be able to identify people who are a close fit but may require training to narrow the competency gaps. Finally, after the team is formed, the RCMs are updated
periodically to monitor changes in the competencies of the team members.
Decision-making with a top-down approach
BP is a business unit which is developing banking software. There are twenty
people working in the unit who were initially recruited for product maintenance.
Competency analysis using RCM showed that the employees’ competency levels
were significantly higher than that what was required for maintenance work. In other
words, these employees were being underutilized. Such competency information can
help in strategic decision-making. For example, BP may decide to outsource product
maintenance and redeploy the team to value-added work like product development.
Table 7.4 A List of roles and competencies required for the AI-based product
Roles
Competencies
• Product manager
• Project manager
• Product architect
– AI experts
– Programmers
– Testers
Technical competencies
• Java programming
• PostgreSQL
• HTML
• CSS
• d3 chart
• Selenium
• ML algorithms
• DL programming frameworks—TF, Keras,
Caffe
• Python
• R
Role specific competencies
• Domain knowledge
• Market research
• Roadmap preparation
• Architecture
• Micro services
• Program management (budgeting,
estimation, and scheduling, process)
• Design (UI, DB, system interaction)
• Development
• Manual testing
• Test automation
7.2 Implementation Approach
127
Table 7.5 Mapping of roles to competencies and required competency levels for an AI based
product
Roles
Competencies
Competency
level
Weight
Product manager
Domain knowledge
Expert (L3)
0.4
Market research
Expert (L3)
0.3
Roadmap preparation
Expert (L3)
0.2
ML algorithms
Trained (L1)
0.1
Project manager
Engineering management
(budgeting, estimation, and
scheduling, process)
Expert (L3)
0.8
Domain knowledge
Trained (L1)
0.2
Product architect
Architecture
Expert (L3)
0.3
Micro services
Expert (L3)
0.3
Design
Expert (L3)
0.3
Java programming
Expert (L3)
0.05
AI experts
UI programmer
Backend programmer
Tester
PostgreSQL
Experienced (L2)
0.05
DL programming
frameworks—TF, Keras, Caffe
Experienced (L2)
0.3
Python
Expert (L3)
0.4
R
Expert (L3)
0.4
HTML
Expert (L3)
0.25
CSS
Expert (L3)
0.25
d3 chart
Experienced (L2)
0.1
Java
Experienced (L2)
0.4
Java programming
Expert (L3)
0.7
PostgreSQL
Experienced (L2)
0.3
Product domain
Experienced (L2)
0.1
Selenium
Expert (L3)
0.25
Test automation
Expert (L3)
0.25
Manual testing
Expert (L3)
0.4
7.2.2 The Bottom-Up Approach
In the bottom-up approach, the required competencies are identified at project level,
aggregated and then standardized at organization level. The activities for identifying
roles, competencies and fitment to role, or determining the competency gap are
performed at project level (see framework shown in the Fig. 7.7). The competencies
and roles specified at project level are the inputs for defining competencies and roles
at organization level. The process is explained in Fig. 7.7.
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We will discuss this with an example. The project sponsor defines the objective and
scope of the project at the planning stage. In this example, a product team’s objective
was to develop an inventory management system to track all computer devices and
softwares in an organization. Here, the crucial roles identified for delivering the
product are (1) project manager, (2) designer, (3) programmer and (4) tester.
The project manager and architect will decide the roles and competencies of the
people required for the project, which will depend on the technologies being used.
Thus, a project for developing an inventory management system requires a user
interface and a database for inventory data for which,
• The technical competencies required are Java Programming, PostgreSQL, HTML,
CSS, d3 chart usage, selenium.
• Role-specific competencies are inventory management, functional knowledge,
design and development competencies and manual testing and test automation
competencies (Table 7.6).
Project Scope/ Objectives
Competencies
Mapping competencies, levels to roles
Project planning
Roles
Determine weightages
Communicate competencies
Determine Competency Index and gap
Publish project RCM
Fig. 7.7 Bottom-up approach to RCM implementation
Project execution
Fill competency levels by team members
7.2 Implementation Approach
129
Table 7.6 List of roles and competencies required for the Inventory management project
Roles
Competencies
Project manager
Functional analyst
Designer
UI Programmer
Backend programmer
Tester
Technical
• Java Programming
• PostgreSQL
• HTML
• CSS
• d3 chart
• Selenium
Role-specific
• Project Management (budgeting,
estimation, and scheduling)
• Inventory management knowledge
• Design (UI, DB, system interaction)
• Development
• Manual testing
• Test automation
After the competencies are specified, the project manager maps roles to the competencies, specifying the competency level for each role and provide them suitable
weights. Care is taken that sum of weights for each role is 1 (Table 7.7).
The competency list is then shared with the project team for self-assessment by
its members. Based on the self-assessed competency levels, an RCM is prepared and
published for the project team. The objective is to help project managers to determine
the competency gaps and develop strategies for improving existing competencies or
developing new ones.
Sometimes, certain competencies, which were specified at the start of the project,
may change during implementation. This happens when product development teams
find that there could be better and more efficient solutions than what was planned
initially. Then, it becomes necessary to build such competencies so that the product
is developed to the required standards of performance and quality. To understand the
need to be flexibility, let us consider the following example
A product company, which was working on developing a platform, had initially considered
open source RDBMS. The competency specifications for programmers included mandatory
hands-on experience with these technologies. However, the product faced serious problems
with scalability and performance. On investigation, it was found that the problem was due
to the limitations of the technology used. Therefore, the product team had to re-architect
the product, using a different technology, graph database, which called for a different set of
competencies. The company had to invest in developing competencies in graph database.
The competencies and roles identified at the project level are inputs for
organization-level/unit-level competency database (Fig. 7.8) . Usually, this work is
done by HR which coordinates with the project managers to obtain competency
information which is then collated and standardized to the extent possible. Since
different projects and project managers would have defined the competencies and
competency levels according to their understanding of the requirements, it may be
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7 Implementation of RCM
Table 7.7 Mapping of roles to competencies and required competency levels for an Inventory
management system
Roles
Competencies
Competency
level
Weight
Project manager
Project management
(budgeting, estimation, and
scheduling)
Expert (L3)
0.8
Knowledge of inventory
management
Trained (L1)
0.2
Functional analyst
Inventory management
knowledge
Expert (L3)
1
Designer
UI design
Experienced (L2)
0.3
DB design
Expert (L3)
0.5
UI programmer
Backend programmer
Tester
System interaction design
Expert (L3)
0.2
HTML
Expert (L3)
0.25
CSS
Expert (L3)
0.25
d3 chart
Experienced (L2)
0.1
Java
Experienced (L2)
0.4
Java programming
Expert (L3)
0.7
PostgreSQL
Experienced (L2)
0.3
Inventory management
knowledge
Experienced (L2)
0.1
Selenium
Expert (L3)
0.25
Test automation
Expert (L3)
0.25
Manual testing
Expert (L3)
0.4
Unit level competencies
(Unit P)
Project level competencies
(Project A)
Project level competencies
(Project B)
Project level competencies
(Project C)
Project level competencies
(Project D)
Fig. 7.8 Competencies at unit level
useful to have a discussion with them, or conduct workshops in which competencies
are specified and competency levels are defined in a uniform or standard manner at
the unit level.
References
131
References
1. Hipple, C. Common competency management pitfalls. Retrieved from http://www.avilar.com/
downloads/CommonCMPitfalls.pdf.
2. Dawson, R. (2010). Five key characteristics of great pilot team members. Retrieved March 2010,
from https://rossdawson.com/blog/five_key_charac/.
Chapter 8
Change Management
A McKinsey survey showed that 70% of programs for organizational change or
transformation, including changes in organizational design and restructuring, fail to
fulfill their objectives [1]. One may dispute the percentage in McKinsey’s claim, but
what cannot be questioned is that the numbers and proportion are large enough to
cause concern. Hence programs like RCM, which have the potential to transform
a company, must be implemented with a clear purpose, strategy and action plan.
A company’s competency management system must be integrated with organizational processes so that employees feel enabled to perform well in their roles and
take responsibility for their development. For this reason, competency management
systems must support––and be supported by––organizational policy and strategy, as
well as structures for performance management, rewards, and recognition. Management must not lose sight of the fact that RCM can impact the careers and aspirations
of the employees. It is vital that the people angle to transformation should not be overlooked. But this depends largely on the interrelated characteristics of organizational
values and culture, and employee attitudes and behaviors. RCM implementation will
be successful only when all the employees in an organization are committed to the
project and work together. For RCM to be implemented completely, and its benefits
to become visible, it could take a long time, even years.
It is understandable for senior management to be apprehensive over the possible reactions of the employees’ and their participation in the program. A negative
approach––or passive resistance––may even lead to failure of the program. This can
happen in organizations that are not open with their employees. It must also be understood that there is no set of rules or guidelines that can help management in their
engagements with their employees. What is paramount is that employee participation
is a must and that communications between management and employees (and other
stakeholders) must be open. Special attention must be given to the areas discussed
in the following sections of this chapter.
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_8
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8.1 Communicating Change
Jack Welch said, “People hate change. You’ve (meaning, the management) got to
explain what is in it for them to change with you.” RCM will impact employees. There
will be apprehension and fear of loss of jobs. If not properly addressed—and in time—
it can lead to demotivation and even key people leaving the organization. It is the
responsibility of management to make sure that every question is answered in a frank
manner. Depending on the occasion and context, this can be done through personal
interactions, group meetings or town halls.
In 2000, an IT company found itself short of project managers. It offered programmers and
technical leads, who were more inclined towards engineering and technology, the option to
shift to project management. Given their qualifications and career interests, most of them
were reluctant. The management then did the obvious thing–bring pressure on the employees.
Some of them accepted the change, although reluctantly, while others left. The result was
that the problem only worsened.
Here, it is clear that business needs were not communicated properly to the
employees whose concerns—losing out on valuable hands-on experience in technology applications and developing new ones—were not addressed with sensitivity.
This resulted in avoidable attrition.
The RCM framework is a radical change in the way organizations will assess
and measure competencies, as well as how they can use competency information,
such as making staffing decisions, facilitating employee development, planning succession in management, workforce compensation, incentives, etc., Thus, it is obligatory for the company’s leadership to assure its workforce that the employees’
competency information would not be used against them. Instead, the stress would
be on developing them.
As a start, the organization’s vision and objectives for RCM, and the roadmap for
achieving them, must be clearly communicated to all employees and stakeholders.
Employees need to be made to understand that their participation would be crucial
to implementation, as well as how they could benefit individually (in terms of more
objective performance appraisals, targeted training and development, career planning, etc.). It would also help if the benefits of RCM are communicated in value
terms, or lost opportunity costs, if RCM is not adopted. Hence, it should not be presumed, especially by the task force because they are the face of implementation, that
all employees understand business issues and the need for RCM. Since the members
of the task force members are also the change agents, they must demonstrate intent
and commitment while interacting with their colleagues. These communications
should be timely, honest and convey a consistent message.
8.2 Showing a Sense of Urgency
135
8.2 Showing a Sense of Urgency
Introduction of new technologies tends to have an unsettling effect on existing business models. It is vital for IT companies to demonstrate agility in responding to the
new challenges by quickly enhancing skills and acquiring new ones that are aligned
to present needs. The sense of urgency in responding to changes must be felt at all
levels of the company’s hierarchy. The benefits of RCM and its direct correlation
with business performance must be stressed repeatedly—as also the likely cost of
not implementing it.
Recalling the example we discussed in the previous chapter (Sect. 6.9), during
the period of digital transformation, the senior management of an IT organization
had realized the need to cross-skill people in digital technologies. They understood
early that to survive in the business, organizational transformation was unavoidable. This need was communicated to all employees. Because of early actions and
involvement of the employees, the company adapted to the new scenario and continued to grow.
Today, technology is trending towards machine-learning for which many organizations are reskilling their people so that they are ready to offer AI-enabled solutions
and services to their customers. It goes without saying that those companies which
do not respond quickly to the new demands will find it extremely difficult to stay
relevant and grow their businesses. To summarize, management must sense emerging
threats and/or opportunities and share them with the employees. Employees must be
supported to quickly equip themselves to respond to the changes. It is either perform
or perish.
8.3 Continuous Engagement
The decision to implement RCM is a strategic one. At the operating level, employees’ involvement may be limited to the self-assessment exercise. They may not be
completely aware of their role in this (strategic) initiative. Thus, in the absence of
proper and timely feedback and communication, there is a high probability of the
workforce losing interest. Hence, it is necessary for the management to ensure that
communications and feedback are provided on time and in an open manner. This
can be done in many ways—one-on-one interactions, group meetings, celebrating
milestones, sharing success stories, etc. Whatever the method, it is necessary to be
constantly engaged. If people are not engaged, or their concerns unheard, implementation will not succeed. If necessary, the employees who have been identified
as change agents, and other colleagues who were part of the pilot, must share their
experiences.
Encourage participation
An initiative like RCM is a major shift from conventional thinking to a more evidencebased and objective approach to people management. The impact is significant on
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individual employee and organization alike. The change process cannot be managed
by the task force; it needs the involvement and participation of every member of
the organization. The task force’s chief responsibility is to assist the employees
to participate and adapt to the changes. Organizational communications must be
unambiguous, and the benefits of RCM must be made visible in the shortest possible
time.
Hear the voices (taking feedback seriously)
Different organizations follow different paths in their journey of change. Therefore,
it may not be appropriate to compare the experiences of one with the ones of another.
However, there are a few determinants of success which are common for all organizations. These include employee participation and empowerment, and respect for
feedback. Companies that take employee concerns seriously and value their feedback
have a higher probability of succeeding with their competency management systems
than those who are less inclined to give them the same attention.
Implementation of RCM and the resulting changes may not happen exactly in the
manner planned. Several challenges, some of which may be unanticipated, can arise.
Employees also may not respond to the changes as anticipated. Additionally, changes
may have occurred in the external environment which can affect the company’s
vision. Hence it is important to constantly monitor the progress of the program,
obtain feedback from employees and refine processes. The decision to make changes
in RCM must be informed, based on reliable data and with the objective of improving
the outcomes.
The consulting unit of an organization tried implementing a competency management system. They spent several months detailing the competency requirements, which were then
published. It was the first time the unit had done an exercise like this. Competency requirements were specified by a group of employees and were based on practices followed in more
mature organizations. Although they did their best, they could not finalize the specifications.
A few employees who were involved expressed reservations and offered their suggestions
for improvement. However, their opinions were overruled and a decision was taken to implement RCM with the model developed by the in-house consulting unit. The implementation
was a failure. The main reason for failure was that because the competency definitions were
copied from a another unit in the organization and the employees of the consulting unit could
not match these definitions to their roles and their competencies. The problem was highlighted on multiple occasions (formal as well as informal) to the taskforce and management
but it was consistently ignored. The program died quietly.
Building trust
Trust is a key element in successful program implementation. Employees will raise
questions about RCM implementation and they would expect honest answers. Most
of the questions will relate to, understandably, the effects of the program on salaries,
promotions, and prospects, and its long-term benefits. Management response must
go beyond the answers provided in the FAQs. Addressing individual queries and
doubts on time, patiently and using reason, will enable building of trust among
the employees, which is critical to the effectiveness and success of RCM. Also,
8.3 Continuous Engagement
137
the responses from management should be consistent across levels. A fundamental
requirement of implementation is transparency without which trust cannot be built.
Rewards and recognition
One way to overcome resistance and facilitate acceptance of change is to incentivize
it. Employees who adapt quickly can be rewarded in various ways.
An IT services organization decided to leverage its expertise and experience
of senior people by advising customers on IT systems. Though the seniors in the
organization had extensive hands-on experience in building and implementing large
systems, they had little experience in consulting as a core activity. They did not
possess crucial skills, such as stakeholder management, the ability to abstract,
making presentations, and communications. The management decided to rectify
this gap by recruiting consultants from outside. But attracting talent proved to be
more difficult than expected and there were not enough suitable people who could
be found. Hence, it was decided to groom a few experienced people from within
the unit by working with the outside hires. In this way, the company was able to
keep recruitment costs low and at the same time, make optimal use of its in-house
capabilities. The decision yielded several benefits:
• The risk of demotivating senior staff, which would have resulted from the higher
salaries that external hires would have to be paid, was avoided.
• Retraining and redeploying existing senior talent helped to maintain motivation
levels and thus, minimized the risk of attrition.
These actions helped convey a clear message to the workforce that its competency management system was directed at providing opportunities for reskilling, or
developing new competencies.
8.4 Realigning People to the Objectives
An employee with a nearly four-decade career in the IT sector is likely to have
witnessed at least four major changes in trends. This is assuming that the lifecycle of
each trend is about 10 years (the reality is that many trends last a shorter duration).
This means that the employee must have undergone a major skills upgrade at least
four times in his (her) career, implying thereby that organizations have to make
substantial investments for realigning their employees to the changing requirements.
One company realized that the competencies of many senior employees were no longer
relevant in its present business model. Their salaries were also due for revision. Instead
of increasing their salaries immediately, the leadership arranged for their training in new
technologies after which they were encouraged to apply their new competencies in various
assignments while simultaneously managing their present work. In this case also, management action reinforced employee trust and commitment.
Once employees see the benefits of RCM (in terms of more fulfilling roles,
opportunities for growth, recognition, etc.), satisfaction levels are bound to go up
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8 Change Management
significantly. However, there is the likelihood of a few employees who, despite the
reduced relevance of their competencies, may not see the need to change. Such
employees are not easily amenable to advice and are, hence, difficult to handle. They
may be reluctant to work with junior colleagues, or in new domains and business
units. It is necessary to identify such people, try and motivate them, and offer them
suitable chances for development. It must be accepted that all employees will not
realign with the changes at the same pace; some will need more time than the rest
and hence, the need for patience and empathy.
Embracing change—Leading by example
The head of a business unit in an IT services organization found that there were several
senior employees in the unit who had rich experience in managing critical customers
and multimillion dollar businesses. With changes in structure and adoption of new
technologies, the need was felt for upgrading their competencies so that the company
could expand into new businesses. The unit head set his colleagues an example by
taking responsibility for his personal development as he led the company into a new
domain. Taking the cue from their leader, most of his subordinates followed suit.
The change process happened over a few months but eventually, all senior managers
in the unit had aligned their competencies with the requirements of the new domain.
Often, it is essential to lead from the front and encourage people to take risks
without the fear of failure or being punished because of failure.
8.5 Focus on Governance
An IT organization implemented what the management believed was a robust competency
management framework, using the best expertise and tools available, and with complete
management backing. As required, employees began updating their competency information in the system. Over time, however, it was observed that nothing was being done with
the information. There was no communication from the management about how this information was being used. Neither could the employees see any changes nor benefits. Things
quickly went back to what they were previously. The competency management framework
weakened and decisions became more and more person-dependent.
This happened because there was no effective mechanism for monitoring the
behavioral and cultural changes, during implementation and after, to ensure that the
system was working in the manner it was designed to. Not doing so, for whatever
reason, led to loss of trust and credibility in the management. This resulted in demotivation among the employees. The possibility of a negative impact is one scenario
that management must be alert about.
The governance body, which oversees implementation, must have a program sponsor, project managers, HR managers and representatives from senior management.
Their responsibility is to review progress with respect to the roadmap and plan, foresee challenges and proactively address them, and ensure that bottlenecks are resolved
so that there are no obstacles to implementation. Persons constituting the governance
body must be committed to successful implementation of the project.
8.6 Organizational Processes
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8.6 Organizational Processes
The task force’s responsibility ends with successful implementation. It is then the
unit heads job to ensure that the changes are institutionalized. This means that once
implementation is deemed successful, RCM must be quickly formalized and made
part organizational processes. Not doing so can result in the situation reverting to the
pre-implementation state and render all efforts for change futile.
Competency management will have an effect on several people processes, such
as recruitment and staffing, career progression, etc. Hence, these processes must be
modified to incorporate the RCM component. If necessary, the task force can work
with HR for updating these processes. Subsequently, HR can be made the custodian
of these processes.
8.7 The Role of Change Agents
Change agents play a crucial role in the RCM implementation project. They are the
ones who can facilitate the embracement and acceptance of change. Change agents
are usually drawn from a wide cross-section of employees (senior management,
middle-management, and team member levels). They are passionate about RCM and
can motivate other employees. Change agents should be familiar with the organization’s dynamics and know how to make the changes visible through frontline project
managers and team members.
Some typical characteristics of a change agent are as follows:
• Has a clear vision of the program and is able to articulate it to the stakeholders.
• Understands the organization structure and dynamics; knows his/her way in the
organization.
• Enjoys wide acceptability in the organization, encourages participation.
• Is enthusiastic, committed, persistent and will patiently work toward achieving
goals.
• Walks the talk, and enjoys high personal credibility in the organization.
• Has enough change management experience in the organization. (It may help to
identify someone in the organization who has been a part of successful changes).
• Has expertise in competency management programs.
• Is someone who has access or can facilitate access to senior management enthusiasm.
Reference
1. Viktorsson, M. E. (2014). Why change implementation failed in a continuously changing organization. Project report, Sweden.
Chapter 9
RCM Analytics
9.1 Competency Analytics
In the preceding chapters, we discussed why and how a robust competency management system is an essential component of a company’s growth strategy. We
also highlighted the benefits of using an objective evidence-based approach to
competency management. We then discussed the fundamentals of Role Competency
Matrix and its usefulness in competency management.
During implementation and after, organizations will constantly be seeking evidence that RCM is working to expectations (as indicated by the improvements that
were aimed at), thereby validating the decision. However, it is also important to
understand whether the improvements were actually the result of improved competency management. This insight is important considering the substantial investments
(in time and resources) made for which the returns must be visible, measurable and
sustainable.
Competency management is a human-intensive process. Due to heavy reliance
on people managers for collecting and analysing competency data, errors and misjudgments can happen. There is also the dependence on the extent of managers’
understanding of the RCM framework being used in a company, as well as their
experiences with the system. This varies from person to person. The goal, then, must
be to make the system as objective as possible. This leads us to a crucial question:
“How can organizations minimize dependency on individual understanding, experience and judgement?”
In most companies, every activity leaves an associated data footprint. Employee
data like academic qualifications, gender, college, age, performance, compensation,
marital status, technologies worked on, city, country, etc., can be used to develop a
360-degree profile of an employee and his/her role, which can enable managers to
make an objective evaluation. Increased objectivity and transparency in competency
management processes also improve employees’ motivation to perform better, and
improve their competencies.
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7_9
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9 RCM Analytics
An employee in a product company resigned because he felt that his work was not being
sufficiently recognized. The manager felt that he was not good enough and did not add any
value to the team’s efforts. On the other hand, the employee’s coworkers, who knew him very
well, acknowledged his important contributions to the development of the team’s product.
However, the manager was not willing to reconsider his opinion; and the team lead did not
want to let the employee go.
Here, we can see a wide gap in the perceptions and opinions about the employee’s
performance between the manager and the team lead. This is a common experience in
the IT sector. Such perception-based assessments can be avoided if there is a method
for objective evaluation.
Another example will help in highlighting another problem.
During an assessment exercise, an employee had rated himself as superior for a particular
competency, whereas the supervisor’s rating was average. This disagreement was escalated
to the manager for review and moderation. The employee was firm in his self-assessment.
His argument was that the definitions for that competency level were unrealistic. The disagreement could not be resolved satisfactorily, resulting in a considerable amount of personal
rancor and mistrust.
Such disagreements are inevitable and difficult to resolve if there is no benchmark
data available to quantify the competency levels. Here, analytics can play a very useful
role in making data-driven decisions.
9.1.1 Categories of Analytics
Analytics are broadly classified into three categories: Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics. The hierarchical structure of Data
Analytics is represented in Fig. 9.1. Briefly,
• Descriptive analytics tries to answer the question about “what happened?”
• Predictive Analytics aims at addressing the question: “What could happen?” using
historical data.
• Prescriptive analytics examines past successes to present suggestions and recommendations while trying to answer the question, “What should be done?”
Competency
metrics
(Data)
Fig. 9.1 Analytics types
Descriptive
Analytics
(Hindsight)
Predicitive
Analytics
(Insight)
Prescriptive
Analytics
(Foresight)
9.1 Competency Analytics
143
We will discuss each type in some detail.
Descriptive analytics is generally a study of past data to understand what happened. It provides useful information about the past in terms of past behaviors. Past
behavior is time-dependent; hence there should be sufficient data points over a period.
The tracking of employee competency index, employee competency gap, workforce
competency index, and workforce competency gap are examples of descriptive analytics. They provide insights about how an employee’s competency has been changing. The change in competency gap will indicate whether the employee’s competency
is increasing, decreasing, or stagnating. Because it analyses a pattern, it is known as
descriptive analytics.
Predictive analytics in competency index uses a set of analytical tools that examine past data to predict the value of competency index or competency gap of an
employee (or the workforce). The results of predictive analytics provide decisionmakers with multiple recommendations and decision-options. For predictive analytics to work, organizations will need large amounts of high-quality data and use strong
machine-learning algorithms to make reasonably reliable predictions and recommendations. The results of predictive analytics are extrapolated to provide managers or
team members with actionable insights. Predictive analytics are basically statistical
in nature and hence the “predictions” always a value that indicates the probability of
it happening. Higher the value, more is the probability that the ‘predicted’ even will
happen.
The data used for predictive analytics is gathered from disparate systems and
sources in the company. The analytics exercise also examines how these data sets
influence each other. For example, while comparing two employees for their suitability for a role, the assessments can include their experience, and technologies
and companies they have worked with, their academic backgrounds, etc. More the
data, better will be the prediction about an employee’s suitability for the role. It also
sometimes happens that the confidence levels in certain predictions are so low that
they can be considered as having no significance for decision-making.
Prescriptive analytics are based on past actions or decisions taken in similar situations. The results of prescriptive analytics make recommendations for the actions
that a company’s leaders can take to achieve certain outcomes. They may include
competency development activities that a programmer must undergo to acquire
the specified level of competency, which also considers the person’s previous
programming experience. We will discuss with an example.
An employee with 5 years’ experience in Java had recently joined a product
development team. It took the person 6 months to achieve a productivity level of
1 FP/day in java. This is “descriptive analytics” because it only states what has
happened.
An organization recruits employees with 5 years’ experience to meet the productivity requirement of 1 FP/day in Java. This is because past employee data shows
them that it takes a person with about five years’ experience to achieve this level of
productivity within 6 months of joining. This insight was gained from “Predictive
analytics”.
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9 RCM Analytics
Such kind of information would be useful to a project manager who needs a Java
programmer capable of doing 1 FP/day. With this specification, HR will be able to
suggest that the programmer should have 5 years’ experience to be able to achieve this
level of productivity in 6 months. This is “Prescriptive analytics”, in which analytics
is assisting HR/project manager in selecting programmers with the required profiles
to fulfill the specified productivity needs.
Obviously, actions and decisions taken in the past are likely to have had an influence on the present condition of the company; therefore, there is a significant learning
element in prescriptive analytics. Special algorithms are designed for prescriptive
analytics, which are then executed on computers. Today, machine-learning algorithms process employee’s competency data, as well as other parameters identified
as having a bearing on the accuracy of the prediction.
9.1.2 Data Sources
Data sources are the key elements in analytics because the quality of the outputs
and insights will depend on the quality of data used in analytics. Thus, identifying
the type of data required and their sources, as well as the amount of data required, is
crucial to analytics. Analytics can provide better results and insights when data from
multiple functions in the organization are collated. This also means that the various functions in the organization must be represented in the analytics team (product
development, finance, HR, marketing and sales, etc.). This approach to analytics
not only provides more reliable results and better insights by bringing in multiple perspectives, but also facilitates acceptance and implementation of analytics for
competency management.
The data collected for analytics will exist in various formats and, most of the time,
may seem inconsistent at first impression due to which doubts may be raised over
its integrity. Hence, “cleaning” data is a prerequisite for analytics. This is tedious
work but unavoidable. Since data is stored in various ways and locations, it must
be brought together and validated before being used for analytics. This takes time.
Therefore, streamlining and automation of the data-collection process, and ingesting
data into a single database is necessary. For this reason, the analytics team must be
given the freedom to ask as many questions as is necessary about the data it will be
working with. This helps in removing ambiguities and make the collection of data a
more focused activity in the future. Additionally, the results of analytics will provide
more meaningful insights, which will foster better decisions.
9.1 Competency Analytics
145
Quality of Data
There are several elements to the meaning of “Quality of data” the most important of them are [1] accuracy, consistency, completeness, availability, relevance,
objectivity. Specifically,
• Accuracy refers to the correctness of data. The values that are captured
and reported are the same as the actual. For instance, an employee may have
completed basic training, but if the system has not captured this information,
becomes inaccurate.
• Consistency refers to the ability of the data collection process to capture
data consistently and without the need to violate rules of data collection or
bypass established process.
• Completeness means that all the data necessary for performing analytics
has been captured. There are two types of incomplete data: sometimes the
data fields are not completely filled, which could be a random occurrence,
or that one or more fields are consistently unpopulated. Depending on the
extent, incomplete data increases the risks of compromising the integrity of
the analytics process.
• Availability refers to the availability of data on-demand, online or offline,
and the ease with which it can be obtained or accessed by the system.
• Objectivity refers to the ability of data and the collection process to be free
from bias. To ensure objectivity, there are standard operating procedures that
define the type of data required, and the processes that must be followed to
collect them.
• Relevance refers to how relevant the data is for addressing a specific question
or a decision requirement.
Analytics are used in many areas of business, including competency management.
A wide range of data sources and types are considered while performing analytics
for competency management (Fig. 9.2). Computer algorithms are so designed that
they can extract data from structured as well as unstructured data types. The results
of analytics are made available to employees and their managers for facilitating
transparent and real-time competency assessment.
We will consider a few examples of the data sources and their use according to
role and competency as shown in Table 9.1.
A product manager is assessed
• for “domain competency” from the product backlog in which the product manager would have defined user stories. The parameters for consideration will be
completeness of user stories, the number of stories that are broken down, and the
number of times the stories have been revised.
• for experience using data from employee profile from which the number of years
of experience in a domain is the input data.
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Product
backlog
Project data
Defect Management
Build data
Data Collection
Analytics and
insights
Release
Management data
Incident data
http:// <Learning portal>
…..
……
http:// <Knowledge portal>
…..
……
Fig. 9.2 Data sources for competency analytics
A project manager is assessed
• for “project management” competency by using data about his (her) previous work,
which can include project size, project cost, team size, methodology, and variances
(in schedule, effort, budget, etc.).
We can extend this approach to other roles, such as designer, programmer, tester,
and support engineer (Table 9.1).
Many large IT companies have developed competency development platforms
internally, which are either web- or classroom-based, or a combination of the two. The
tools used in these platforms capture information on employees’ competency development activities, which are inputs for analytics. Many organizations have also started
mining employee data with the help of collaboration and knowledge management
tools to understand the value of contributions made by employees, their sentiments
and extent to which they feel engaged with their work in the organization. One company, Cognizant, had analyzed the social media posts and blogs of its employees and
9.1 Competency Analytics
147
Table 9.1 Sample data sources by role and competency
Role
Competency
Source of data
Product manager
Domain knowledge
Product backlog (domain, user
story, author)
Employee experience profile
(domain, number of years of
experience)
Project manager
Project management
Project management system
(project size, project cost, team size,
methodology, schedule variance,
effort variance, budget variance)
Designer
Design skills
Monitoring tool (system
performance, scalability of the
system)
Incident management tool
(incidents)
Programmer
Programming skills
Static code quality tools (lines of
code programmer have written,
complexity of the code handled,
technology in which they are
writing the code)
Static and dynamic application
security testing tools
(vulnerabilities data)
Employee experience profile (the
experience level)
Tester
Test automation skills
Test management tools (the number
of automated test cases, test
coverage)
Defect management (test defects)
Incident management tool (number
of post-production defects)
Support engineer
Incident resolution capability of an
application
Incident management tool
(resolution time, number of
incidents resolved by level 3
support)
found that the employees who blogged regularly were more engaged and satisfied
than others.
Based on the competency requirements for a role and data collected, the competency index is assessed and the areas in which the employee needs to improve are
suggested. Similarly, the workforce competency gap is also calculated, and suggestions are provided to the unit manager for a decision. The results of the analysis will
recommend avenues for career progression for employees who have been performing
well consistently.
One must keep in mind that the aspirations and interests of employees are never
static. They will be constantly seeking opportunities to advance their knowledge
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and job challenges for improving career prospects. For example, an employee with
competency and experience with Java programming may want to develop his (her)
skills at machine-learning.
Some employees are explicit in expressing their aspirations; others may be less
inclined to do so. Therefore, management should realize that it must make the effort
to understand where their employees’ feel that their interests lie. This can be done
by tracking the changes in their competencies or a noticeable increase in interest
or involvement in a particular kind of work. Often, employees’ contributions in
collaboration platforms, what they read over the internet, and the information they
access from internal knowledge resources give a reliable indication of their interest.
9.2 Applications of Competency Analytics
Competency analytics provide various insights for better decision-making in various
aspects of people management like hiring, staffing, competency development, career
progression, attrition, defining competency levels, etc. Some of these applications
are discussed in this section.
9.2.1 Hiring
a. How can analytics help a company to decide if it is hiring the right people? What
kind of people are likely to remain with the organization?
It was campus placement time in BITS, Pilani, in the late 1990s. The recruitment manager from a well-known organization was visiting the campus in search of
suitable recruits for his company. At the beginning of his presentation, he made it
clear that his company was not looking for 10-pointers. This statement resulted in
confusion among the students. It was something that they had not heard before: most
top companies who hired from campus laid great stress on academic performance.
After a pause, the recruiter added that they were not looking for average performers
either. Rather, their interest was in students with a grade-point average of 7–9 because,
in their experience, the probability of staying with the company after 2 years was
higher with these students, which is the period within the top-rankers tended to leave.
The company management had found that early attrition was affecting company
performance and revenues. Analysis by the company’s HR showed that students
with a slightly higher-than-average performance were more committed and tended
to stay longer. This finding was used to revise the company’s recruitment policy and
selection criteria.
How did the company arrive at this conclusion? They had gathered institution-wise
data—the number of people recruited and the years they stayed with the company,
academic performance, and location of the college (or institution). After analyzing
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149
recruitment and attrition data, the company concluded that “recruits from BITS Pilani
with a score of 7–9, and with a non-computer science background, tend to stay with
the company for at least 5 years.”
While retention of employees is one dimension, the other aspect is ensuring that
the quality of people being hired is not compromised. Using data on past hiring
experiences and employee performance (projects, productivity, tracking of competency index, etc.) managements can gain useful insights into the effectiveness of their
recruitment policies and methods in getting the right set of people with necessary
skills to join. the company. Further, the analytics can also identify the optimum combination of knowledge and skill sets, and even college from where to recruit for
making optimum hiring decisions.
Building competencies means developing the required competencies internally,
or with the organization’s resources and efforts. Buying them means either hiring
people with the required competencies, or outsourcing the work for which these
competencies are required. Both have advantages and limitations. The decision to
“build” or “buy” must be aligned to the organization’s strategic vision.
b. Deciding on whether to “build” or “buy” competencies
Depending on the nature and complexity of the technology that a company is
considering, and the predicted learning curve for its adoption, RCM analytics can
help organizations make an informed “build” or “buy” decision. For example, market analysis may have forecast that DevOps would become common practice in
about a year. However, an organization may not be in a position to adopt the tools
and methods. Analysis of past data of this company showed that it takes about two
years to develop and apply a new competency. Thus, it was reasonable to presume
that it would take two years for the company to build DevOps competencies. The
alternative is to strengthen project teams by recruiting engineers with DevOps experience. The required competency levels of these recruits and the numbers will determine the estimated workforce competency index of the team. A what-if analysis
can be performed by adding “m” number of engineers with DevOps competency
at level 4 and “n” with DevOps competency at Level 3, and “o” who are at Level
2 in DevOps. The analysis will estimate the impact of recruitment on workforce
competency index. The results of “what-if” analysis can help in optimizing staffing
with employees having employees having various levels of competency in DevOps.
Using this approach—buying a competency—increases an organization’s chances of
increasing its competency levels in a short span.
c. Deciding between fresh graduates and experienced people
Competency analytics can assist management in making data-based hiring decisions to ensure that the right people are recruited at the right time. Managements are
constantly faced with a difficult recruiting choices—to hire someone who is fresh out
of professional college, or to hire a person with experience. Several considerations
are at play here. The cost of an experienced employee is significantly higher than that
of a fresh graduate but on the other hand, the latter become productive in a shorter
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time when compared with fresh graduates. Again, experienced recruits could be relatively more inflexible with their ideas and attitude as they try to adapt to a new work
environment. On the other hand, although they may be more amenable and willing
to adapt, fresh graduates will require grooming and mentoring, which is an added
cost to the company.
Fresh graduates rarely possess the skills that can be immediately put to use in
their jobs. A significant amount of orientation and mentoring is necessary to help
them as they transition from academia to the intensely competitive world of business
and enterprise. This takes time. In most companies, the shift from potential to performance takes about a year only after which these employees can be regarded as assets.
From a purely management perspective, until then, the company is only incurring
a cost. This cost can be considered as the cost of making an employee productive.
This varies from person to person. Some employees adapt and learn quickly, while
others may need more time. A few may even fail to ‘make the cut’, meaning that
their performance consistently falls short of expectations. Here, predictive analytics
can assist company managements by using historical data like the time needed to
achieve a certain value of competency index for a role. Here, analytics can be based
on academic performance, college, discipline, country, city, type of project, productivity, retention percentage for a 5-year period, etc. It can help generate a probable
learning curve for a new employee with which appropriate decisions can be taken.
It is the practice in many Indian IT service companies to recruit fresh graduates
in large numbers every year. The widely held view is that this group of new hires
consists of eager and enthusiastic learners who can be groomed to quickly fit in the
organizational culture and, therefore, the cost of getting them performance-ready
must be seen more as an investment.
A product unit recruited several experienced people in a country. But it found that most of
these started leaving the company in less than 2 years after joining. Analysis of employee data
like (past experience, locations, seniority, etc.) revealed that because of cultural issues experienced people have a 90% probability of leaving the organization early. This finding prompted
the management to try and identify employees from other product units in the organization
for various roles. The decision resulted in reduced attrition, and improved team performance.
9.2.2 Staffing
a. Making sure that the right employees are selected to fill positions and that there
are no compromises on workforce quality.
Due to the talent crunch—more specifically, of competent people—HR managers
are finding it difficult to meet staffing needs. Hence they try to fill vacancies with
available people. As explained earlier, it is common practice to hire for open positions
regardless of the person’s suitability for the role. It is often difficult for HR to be aware
of the more nuanced (or unstated) needs in role requirement, as well as employee
aspirations. As a result, they take a broader view while trying to fit potential hires
in a position. Considerable time is spent by representatives of the project team in
9.2 Applications of Competency Analytics
151
interviewing potential candidates to determine if the person(s) shortlisted by HR is
(are) suitable for the position. After a point, by which time several interviews may
have been held, project managers tend to give up and make compromises, filling the
position with someone who can perform the required tasks to an extent but is not
necessarily the good fit for the role. The result is that, usually, product quality suffers.
Using competency gap metrics and competency analytics, both project managers
and employees can be made aware of the suitability of the employee for an identified
role. In case the employee’s competencies are not meeting the project and role requirements, the project manager can use RCM information to identify suitable people from
other teams or business units in the organization. This minimizes dependency on HR
try and manually identify and shortlist suitable employees for the role. In a scenario
where a suitable person cannot be found, RCM information helps managers to take a
decision with a complete knowledge of the limitations of the person(s) being selected,
and the competency development activities that need to be planned for them.
Competency analytics will help identify the most suitable candidates using information about similar types of projects that the person has worked on, the technologies
he/she has worked with and years of experience with them, etc. Analytics will assess
the competency level and gaps of the candidates and present recruitment suggestions.
b. Making optimum selection decisions by balancing role requirement and limited
availabiliyy of talent
Companies often find themselves in situations where they need to take quick
decisions on assigning available people to various projects and activities. Delaying
a decision till the right person is identified is likley to have a significant cost. Competency analytics helps in optimizing staffing by matching available competencies
with role requirements by balancing competency constraints with the need to ensure
that none of the projects are affected. Here, analytics can help management to
simulate possible (or what-if) scenarios to identify people who are an optimum fit
for a project, or those who can be moved across projects. Simulation of what-if
scenarios and understanding the likley impact on competencies can help in making
crucial staffing decisions.
One project team was having the problem of finding people for a programmer and support
roles. A what-if analysis helped the project manager to assess workforce competency gaps
in the testing and support teams if a tester was assigned to a support role. A what-if analysis
was also done to assess workforce competency gap of the test and development teams for
a scenario in which a tester was assigned to a development team. The results showed that
a person could be moved from the testing team to development team without significant
impact on team competency.
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c. Optimizing the composition of a project team
A project manager must first set up a project team before commencing a project.
Ideally, the people selected to the team will fully meet the competency requirements
for the project. However, the reality is that there is a significant subjective component
in decision-making that influences team composition. Project managers often prefer
to select employees they are comfortable working with, or go with their intuition. If
we accept that team selection must be guided solely by the objective of delivering
the best results, then it is necessary to have a measurable basis on which the right
people are selected.
Competency analytics can assist the management in identifying suitable candidates for the project. It will suggest to management the optimum mix in the team for
fulfilling project requirements. This approach is not only transparent and evidencedriven, it also saves considerable time (and cost) in the decision-making process.
Often, a considerable amount of time is lost in identifying suitable people and then
transitioning them from the project they are working into the new one. Reassigning people and transitioning them is an offline and time-consuming process; it also
involves negotiations with other managers for their release. A competency analytics
approach also helps in preventing some of the best people available in the organization from being stuck in one project, and presenting the organization with more
flexibility in deploying available workforce. These examples show how competency
analytics assists management in making various staffing decisions based on data,
facilitating decisions to put the right people in the right roles.
9.2.3 Performance
a. Workforce performance and improved productivity
Workforce performance depends on factors like competency, project type, engagement levels of the workforce for higher productivity and performance.
The competency index and competency gap profiles of an employee or workforce
will increase or decrease over time. This depends on the activities they perform in
their roles, and the extent of their engagement and motivation. It is seen that, typically,
the competency index curve becomes flat after a point, which is an indication that
the employee is stagnating in terms of his/her competency. One needs to correlate
this observation with productivity to know if the stagnation is having an impact. It is
seen that, typically, the productivity of the employee will be at its peak during this
period (Fig. 9.3).
The profile will provide an insight to management about the time an employee is
likley to take for becoming productive. For instance, an experienced person joining
a product team would take 2–3 months before making a visible contribution to the
project he (or she) is working on, and about 6 months to become productive. This
estimate is based on analysis of data from past experiences. Such insights are useful
for managers while planning and budgeting their projects.
9.2 Applications of Competency Analytics
153
b. How soon can we know if a team member who has recently joined a project, is
not meeting performance expectations? When is intervention required?
Predictive analytics assists managers by projecting when an employee—a fresh
graduate or experienced professional—can be expected to become productive.
Figure 9.4 presents the results of analysis of past data which shows that, generally,
a lateral recruit with a background in computer science and 5 years of programming
experience takes about 4 months to meet the company’s expectations of productivity.
Vishal and Ashok joined a project team as lateral hires. Vishal took about 3 months to
become productive, while Ashok needed five. Predictive analytics had indicated a period of
four months, which is very close to the actual time taken by the two recruits.
In situations where a lateral recruit does not meet the productivity expectations
within the timeframe predicted by analytics, managers can initiate a dialogue with
0.6
0.5
0.4
0.3
0.2
0.1
0
Competency index
Productivity
Performance and Competency index
12
10
8
6
4
2
0
Timeline
Productivity
Competency index
Fig. 9.3 Performance and competency index comparison
Competency index profile
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
Q1'17
Q2'17
Q3'17
Q4'17
Ashok
Fig. 9.4 Competency index profile of recruits
Q1'18
Vishal
Q2'18
Historical
Q3'18
Q4'18
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Productivity of programmers
competency gap of a programmers
Jan
Apr
Jul
Jan
Oct
Apr
Jul
Oct
0.6
0
-0.2
-0.4
-0.6
-0.8
0.4
0.2
0
Venkat
Rakesh
Venkat
Rakesh
Fig. 9.5 Correlating competency gap and productivity of programmers
the employee to try and understand the constraints to performance. The discussion
can also reveal whether the person is an appropriate fit for the role he (or she) was
selected for. The insights and feedback gained from such discussions become inputs
for the recruitment process.
c. Sensing lack of employee or workforce engagement (drop in performance)?
Project teams consist of people who are sufficiently motivated to put in their best
efforts consistently, as well as a few who lack motivation. The reasons for lack of
motivation can be many. But it is necessary to identify such persons because they
affect team productivity and the work environment.
One of the ways to identify motivation issues is by correlating employee competency gap information with employee productivity. In the example shown in Fig. 9.5,
Venkat’s competency gap is more than Rakesh’s but he is more productive. We
can see that Rakesh’s productivity had declined since April that year, something that
should have attracted the notice of HR. Timely detection of motivational issues helps
HR to respond before it becomes a major problem. This may include actions, such
as trying to understand if the employee has any personal problems, the presence
of interpersonnel relationships, etc. Necessary corrective actions can be taken and
the employee’s performance monitored to determine if the actions have resulted in
improvements.
Often, there is a pattern in workforce performance. For example, there may be a
dip in performance in the period immediately following performance appraisal and
during the vacation season. Analytics can be so designed as to ignore these patterns.
d. Knowing if a programmer will be able to meet the quality requirements of the
software.
Predictive analytics is used to predict the quality of software produced by a programmer having a certain level of competency.
An India-based IT services company correlated defects injected by a programmer
and his (her) competency level at that time. It was found that the programmer did
not have enough competency for the work he was given, which was identified as
9.2 Applications of Competency Analytics
155
the most probable cause of the higher-than-permissible number of defects found in
the software. This finding helped in the planning and implementation of corrective
actions in two ways: (1) training the programmer to develop software to the required
level of quality, and (2) improve the code review processes.
Other factors that need to be considered, in addition to productivity, is quality.
Based on the competency level, analytics can help to predict the number of defects
and code complexity induced by the programmer. This information includes the
number of post-release defects also indicate the quality of software developed.
From these examples, we can see that in many ways competency analytics assists
management in making important people decisions with a better understanding of
the effects of competency on performance and productivity.
9.2.4 Competency Development
a. How can a company guide its workforce to focus on areas that are necessary for
achieving its strategic goals? What are the most sought-after competencies and
the gap?
Workforce competency development is necessary for upgrading or cross-skilling
employees in new technologies, domains, as well as for competencies which
are in high demand. For example, today, machine-learning is a much sought
after competency by organizations. Present availability is not enough to meet the
demand. Depending on what an organization wants to achieve in the near- mid- and
long terms, it must identify the competencies needed in its workforce to meet these
goals and the appropriate plans and investments required to develop (or acquire)
them.
Based on insights gained from market analysis, the company’s business
goals, project proposals received from the sales team, and the frequency at which each
competency in the company database is searched (an indication of its demand), it is
possible for HR to get an insight on future competency needs. Predictive analytics of
competency data help in the planning and development of these competencies, thus
avoiding a situation in which management and HR are forced to work in a reactive
mode. The competencies required as well as their levels, the number of employees needed , their availability, whether there are requirement for niche (or special)
skills—these are inputs for determining the most sought-after competencies in the
organization.
b. How would a company know if it is investing in the right people for their
competency development?
This is a question that managers often ask while deciding on recruiting an
employee. Companies hire people to fill a need. A substantial amount of, effort
and expense is incurred in the people search and hiring processes. Obviously, it can
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be an unsettling experience for the managers when the person selected leaves very
soon after joining. In addition, the decision-maker’s judgement is also questioned.
Analytics uses attrition data, experience, business unit, city, country, employee
age, manager, gender, compensation structure, etc., to estimate the probability of an
employee remaining in the organization for a certain period. Managers can use such
information to make suitable competency development decisions.
c. How does competency development investment affect workforce performance?
The time an employee spends on developing his (her) competency and the type
of activity will influence his (her) overall productivity. For example, Vikrant, a Java
programmer, spends 20% of his time on learning Java, while his colleague, Prasanna,
spends only 5%. Here, a correlation of the type of competency development activity,
which each employee engages in, with productivity must be established to assess if,
say, spending more time on learning Java fundamentals or its advanced concepts,
has resulted in an increase in productivity of programmer.
Patience is necessary. The effects of employee development training take time to
become visible. Some training programs result in early improvements, while there
are others in which the results are seen only after some time. For example, a training
program for languages may show early results because the trainee may be expected
to apply his newly acquired competency immediately. On the other hand, the effectiveness of a management development program will take some time to reflect on
the employees’ work.
d. What is the return on investment for competency development activities?
Employees recently recruited to an organization need time to become productive.
But how much time should be considered as reasonable? This is a question that managers often ask. It is important because the salaries paid to employees are regarded
as a cost on which there must be visible returns after a certain period. The question
can be addressed with analytics using available employee data. The results can suggest optimum decisions considering present competency index and gap, experience,
salary structure, etc. The correlation between the cost of competency development,
increase in workforce competency index, improvement in workforce performance
will provide insights to management for improving workforce performance and revenues.
9.2.5 Career Progression
What is the next suitable role for an employee?
“What next?” (for an employee) is a frequently asked question in the IT community.
IT workers are constantly seeking knowledge and challenges that will further their
9.2 Applications of Competency Analytics
157
aspirations. Organaizations (and managers) can use the results of competency analytics to guide employees in taking career development-related decisions, which will
help to improve employee performance, employee satisfaction and engagement
One member of a product team was performing consistently well for a few years. But he
was not very sure about the direction he wanted his career to grow. His manager had neither
the time nor patience to help the employee understand his strengths, and arrange suitable
development opportunities. Here, competency analytics can play a useful role. Using past
competency and performance information, and behavioral characteristics, analytics can recommend roles that the employee can consider, and the competency development programs
that she needs to make use of it to fit in these roles.
9.2.6 Workforce Competency
The workforce competency index will not remain a constant for long—it will decrease
when competent employees leave the organization and increase when competent
people join. In addition to attrition and hiring, other factors, such as competency
development programs and activities also affect workforce competency index. Competency analytics can provide relevant insights in terms of possible causes of changes
in the pattern.
a. The Effects of internal movements (transfers within the company or business unit)
on productivity, employee engagement, and attrition
Many IT companies in India and abroad offer employees opportunities to work in
other functions. The primary purpose is to give them an exposure to other aspects of
the business and thereby help them to develop a more rounded outlook. These internal
movements are determined by the organization’s needs which are matched with the
employee’s interests and aspirations and play a significant role in talent retention
and development. Many companies report that their policy on internal transfers has
helped in improved workforce performance.
Here, analytics can assist management to plan internal movements in a more
systematic manner by considering employee competency and potential, experience,
gender and other factors like geography (if adaptability to a new culture is crucial),
technology, the business unit, likely effect on productivity and performance, etc. Analytics can provide the insights needed by management to make informed decisions.
Analytics may also indicate whether the relocation needs to be incentivized so that
the employee agrees to the shift. For example, the US and UK are the most soughtafter locations because of the absence of the challenge of learning a new language
(English being the language used by everyone). However, the same set of people may
not be as inclined to work in non-English speaking countries like China and Japan.
Analytics can help to identify employee clusters in which employees placed on one
cluster may have similar relocation preferences. In this way, competency analytics
offer managements a more reliable tool for making decisions on internal movements.
There are other ways in which competency analytics can help with making people
decisions, such as presenting employees with more challenges. It often happens that
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employees working on one technology for a long time tend to lose interest and motivation. Competency tracking of such employees and analytics can help management
to identify the technologies (or areas) that an employee may be interested in and
examine how these align with the companies business needs. Proactive decisions in
such matters by using data and analytics help in retaining and nurturing talent, and
serve organizational objectives.
b. How will management determine if existing capabilities are enough for achieving
business goals? If not, how will it identify the areas that require improvement?
How can managers become aware of the need to improve workforce competency?
What will be the impact of recruitment and attrition on workforce competency?
Analytics provides insights to management on the impact of recruitment or attrition or competency development on workforce competency.
At the organization level, the management may find that it is necessary to monitor
the competency index and competency gap profiles of the workforce for determining whether there is an improving trend. Another motivation could be the need to
understand the effect of new recruits (fresh graduates or lateral hires) on workforce
(or team) competency. Large-scale hiring, as is sometimes necessary when there is
a surge in business, can affect workforce competency. Thus, regular monitoring of
competency index and competency gap will help in flagging issues and plan timely
corrective actions.
Additionally, regular monitoring also helps organizations to assess the impact of
the attrition on workforce competency profile. This is particularly useful during times
when there is a spike in the number of employees leaving. In many companies, this
happens in the first quarter of the financial year which is the time for performance
appraisal and salary review. Employee attrition pattern can help to indicate the period
in which attrition is likely to increase, giving management sufficient time to prepare
their responses (recruiting and training people).
c. What is the possible impact of emerging technologies on a company’s workforce?
Is it prepared to respond to market needs? Is the workforce competency enough
to address the changes?
Market analysts like Gartner periodically publish emerging technology trends. It
is necessary for organizations, particularly in the IT sector, to understand their present
status with respect to these predictions, and where the emerging technologies are in
the “hype” curve. Furthermore, they will also want to know how long it may take for
them to catch up. For example, in its “hype” list of 2018, Gartner had predicted that
expectations of “smart workspace” is at their peak and are likely to plateau in the next
5–10 years. Forecasts like these are useful for managements to plan on developing (or
aligning) workforce competencies for, as example, the “smart workspace”. A service
provider may tie-up a few product companies for providing services in the “smart
workspace” business. A product unit may want to start building products to gain
market share early.
Based on the competencies needed for smart workspaces, management (or HR
managers) will determine workforce competency gaps. This gap will help in plan-
9.2 Applications of Competency Analytics
159
ning for competency development to meet future business needs. It also includes the
number of people required for those technologies. In case the competencies cannot be
“built”, “buy” or “augment” decisions can be made with the competency information.
d. How does the organization know if there is a knowledge risk and which team
member poses this risk?
It is frequently the case that a few employees make key contributions to a project
because of which they are referred to as critical (team) members. Obviously, companies will do their best to retain their key persons through various means: attractive
salaries, quick recognition, and promotions. Despite this, the possibility of key persons leaving remains. Therefore, it is important to assess this risk and the possible
impact of his (or her) departure on the workforce competency index. Analytics can
be used for risk assessment.
If analytics reveal that the likely impact will be significant, it becomes the management’s responsibility to take mitigation actions, such as grooming other employees
for that role, or find various ways to reward exceptional performance. Presently, the
assessment of the risk of key persons leaving is largely dependent on the project
manager’s intuition. Competency analytics will help to highlight these risks and
recommend suitable actions.
9.2.7 Managers Behavior
Do managers matter in high-performance teams? If yes, what are the characteristics
required in managers of high-performance teams?
High-performance teams have greater productivity and deliver high-value outcomes. They have certain defining characteristics—open communications within
the team, a strong sense of ownership, trust and mutual respect, effective working
practices, and building the competencies of the team. Team members are highly flexible and adaptable, learning continuously from their work. High-performance teams
usually have outstanding managers (or coaches) who guide them in achieving their
objectives.
At one stage in its existence, Google did not believe in having managers. However,
their analysis of performance data showed that its high-performance teams did indeed
have good managers. However, being engineer-led and data-driven, Google did not
see the need for managers and decided that the manager’s position must be removed
from the company’s organization structure [2]. All employees became individual contributors. It was not long before the employees started to approach senior management
for decisions. This became a distraction for everyone. Eventually, the managers were
brought back into the teams. The experience prompted Google’s People & Innovation Lab (PiLab), consisting of a group of social scientists, to investigate if managers
really matter. If it was found that they do matter, the next step was to identify the
various characteristics of good manager. The findings were expected to help others
become outstanding managers. The project, named “Oxygen”, was started in 2008.
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In the beginning, the research team plotted performance data and did an employee
satisfaction survey. The results showed a very cluttered graph. Then, they used performance data, team productivity, employee engagement level, attrition, employee
satisfaction surveys, etc., and performed a statistical analysis, the findings of which
led them to distinguish between good and bad managers.
The researchers went further. They also interviewed a few managers to understand
what was the difference between the good and struggling managers. The conclusions
of the Google study can be summarized as follows:
A high-scoring manager at Google
• Is a good coach.
• Empowers his team and does not micromanage them.
• Empathizes with his team at a personal level. He wishes their well-being and
expresses concern when required.
• Is productive and result-oriented.
• Is a good communicator, s/he is a good listener and shares information readily
• Helps team members with their career development
• Has a clear vision/strategy for the team
• Has important technical skills that help to advise the team
• Is a decision-maker.
In contrast, the struggling managers were those
• Who had a tough transition (e.g., suddenly promoted, hired from outside with little
training
• Who do not follow a consistent approach to performance management and career
development.
• Spend little time on managing and communicating.
With these results, Google began to place greater reliance on managers for decisions and cross-team collaboration. PiLab’s findings helped Google to identify potential managers and groom them. This is one example of the use of competency analytics in assisting organizations identifying the right managers to lead teams and in
grooming potential managers.
9.2.8 Attrition
Attrition is a common problem in IT organizations. Competency analytics has the
potential for generating useful insights into employees’ behaviors and the factors influencing their decision to leave, which organization need to address [3]. Most
organizations investing in workforce analytics would like an indication of the probability of people leaving. Some organizations view attrition as a healthy thing––from
a perspective of letting poor performers go, as well as a bringing a desirable churn of
talent and ideas. But attrition can also be detrimental to organizational well-being.
A high attrition rate is a sure sign that all is not well with the company’s business or
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people policies. Moreover, high attrition also increases the chances of high performers leaving the company. No organization would like to find itself in this situation of
losing talent faster than it can replenish it.
Performance is also a matter of perception for an employee. S/he is not likely to
take kindly to feedback that suggests shortcomings and the need to improve. In such
a situation, analytics help to provide insights on how competent and productive the
employee has been in the period under review.
There are other (usually unstated) reasons for attrition. People leaving in groups
are most likely to take up a job together with a competitor. However, differences in the
rates of attrition between project teams and business units of an organization may also
indicate the quality of management in each. In a Mergers and Acquisition scenario,
employees leave in large numbers in a short span when they lose the feeling of comfort
and security they were used to in the previous set up. Unless the management was
expecting it and was prepared, the loss of talent and competencies will take a long
time to recover from. Regardless of the reasons why employees leave the company
in large numbers, there is bound to be an adverse effect on employee competency
index.
a. Which project teams are at high risk of losing people?
We will discuss a scenario in which several programmers, designers, and testers
are leaving a project team around the same time, a signal that all may not be well
with the team. It is a matter of concern for both the HR and the head of the business
unit. Their first response would be to understand how good the project manager
is, which would be indicated by his competency index. A high competency index
may indicate two possibilities:
1. Sometimes, competency definitions could be flawed because of which a high
CI value is not necessarily indicative of the person’s suitability for the role
of project manager. A good manager is expected to hold his team together
for which the role competencies must be clearly specified.
2. There are no obvious shortcomings in the competency definitions. Hence,
further investigations are required to determine the reasons for people leaving
the project team in large numbers.
Competency analytics can assist management to examine both possibilities
and provide evidence-based guidance for further actions.
b. Which employee competencies present high attrition risks?
The departure of several programmers with similar competencies in a short period
could mean that these competencies are in high demand. Providing alerts to unit
managers and HR managers can be useful to plan actions for encouraging people
to remain in the organization.
c. When is an organization more likley to lose employees?
There is a cyclic pattern to people leaving a company. If the numbers peak in the
months of April and May, which is the appraisal period, it may indicate employee
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dissatisfaction with their appraisal results. Employee analytics can help HR to
understand the type of employees who are most likely to leave. This information
can be useful in the planning of suitable responses––in the form of targeted
incentives for retaining key persons or initiating the recruitment process for a
replacement.
Attrition data of a product unit showed that employees working on a certain
technology platform tended to leave in 2–3 years. Analytics showed that most of
those who left had joined the unit fresh from college. It was found that
• 80% of employees who were hired as fresh graduates left the organization after
2 years. They left for better opportunities and salaries.
• 10% of employees left after 5 years for better career opportunities abroad.
The findings helped management to implement certain actions to reduce attrition.
These included
• A decision to recruit laterals instead of fresh graduates
• Efforts to retain employees by offering a more attractive compensation package
after they completed 2 years in the organization.
Although organizations are concerned about attrition and try to keep it to a manageable level, they do not address the fundamental problem, which may be rooted in
employee motivation and engagement. Companies that make workforce competency
development a business priority are more likely to control employee attrition than
those who do not. The need for workforce competency development, and in what
specific areas, are identified with the help of competency analytics.
9.2.9 Using Analytics for Defining Competency Levels
How does analytics assist HR in defining the competency levels?
Usually, the definitions of competency levels are based on expert opinion, which
is sometimes biased toward a particular perspective. The values in the definitions,
such as “the number of lines programmed”, “number of projects executed”, etc., are
influenced by these opinions. Thus, the question that must be asked is, “Are these
definitions realistic and achievable?”
These questions cannot be answered satisfactorily without data. Analytics has the
potential to play an important role here helping the organization find the right answers.
Competency data are clustered according to key parameters like technology (Java,
.NET, COBOL, etc.), project type (development, maintenance, product deployment
etc.), complexity of project (measured in cyclomatic complexity grouped as high,
medium, low), domain (manufacturing, healthcare, retail, etc.), location (single, distributed), workforce experience (avg. work experience of <5 years, > 5 and <10 yrs,
>10 years) etc. Such clustering helps in deciding the thresholds for each competency
and competency level.
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163
For example, the average lines of code programmed in java (1 FP/day) and cobol (0.5 FP/day)
vary significantly. Programmers of one country may be better than those from other countries.
Development projects will have higher productivity than maintenance projects because of
the time needed by the programmer to understand the existing logic before making changes.
Similarly, for a project manager, the data is clustered for parameters like average variances in
schedule, quality and cost after which the thresholds are determined based on which project
managers in the company or business units can be classified at various levels. For example,
in a competency definition, project managers at competency level 4 should have schedule
variance of < 2%; cost variance of < 5%; and quality variance of < 1% in the last 10 projects.
A similar exercise can be done for other roles also, such as testers, designers, etc.,
for defining the competency levels. In some cases, the organizations may not use a
sufficiently large number of parameters, but they should use the data they have to
carry out the analytics instead of relying completely on the intuition of the seniors.
9.3 Challenges in Using Analytics
• While competency analytics offer significant advantages, there are also constraints
that one must be aware of while using them. The most significant one is that the
data being used for analytics may not be accurate and consistent [3]. Therefore,
organizations must spend time and effort to ensure that the data being used for analytics is accurate, relevant, and available in the form and structure that is required
for analytics.
• Most managers prefer taking decisions which are driven by their perception of the
issue, or their intuition. The proper use of analytics in decision-making requires
a change in attitude. It is necessary to accept that crucial decisions must be based
on the evidence provided by data. This also calls for ensuring greater accuracy of
data. However, one must also be on guard against the tendency to get distracted
by the search for “perfect data” and “perfect results”. Data are measures of certain
indicators and managers should be realistic with their expectations of how the data
will help in decision-making.
• Maintaining Privacy and Confidentiality: It is also necessary to be mindful of
the fact that data privacy rules are becoming increasingly stringent. The EU has
recently passed the General Data Protection Regulation (GDPR) and other countries are in the process of implementing similar privacy laws. Strict privacy laws
can become deterrents to competency analytics unless the organization is transparent with their employees about—and obtain their consent for—the use of their
competency data. To the extent feasible, they should share how the information
will be used and how they can benefit from the results of competency analytics.
Regulations and statutory compliances must not be overlooked.
• Organizations maintain substantial amounts of employee and competency data.
These data can be used for predictive and prescriptive analytics, providing managers, HR, and employees objective information for making decisions about their
performance, deployment, and careers. Proper use of data analytics will allow
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employees to focus on more productive work, leaving HR to give more attention
to strategy than getting involved in operations [3].
9.3.1 Common Mistakes in Competency Analytics
Some of the mistakes that the organization must avoid in competency analytics are
discussed by Davenport et al. [4]. The major problems mostly arise from a lack of
proper understanding of the purpose of analytics or the quality of data.
a. Aligning the objective of analytics to business outcomes:
Today, companies maintain huge volumes of data on their workforce. But it is not
necessary that all of them should—or can—be used for analytics. Instead, the need
for analytics should be clearly understood and explicitly stated before deciding the
type of data, and how much, is required. The general rule is that a company must
collect only as much data as is required to answer the questions raised.
Changing business needs and priorities will also require changes in the kind and
amount of competency data required. Otherwise, although the analysis may produce
accurate results, these may not be necessarily relevant to needs. Hence, it is important
for the HR’s analytics team to keep pace with changing organizational priorities.
b. Quality of competency data
Employee competency data should be as comprehensive as possible. This requires
a proper understanding of what is needed, and then establishing appropriate processes
for obtaining them. Some organizations accept scores of Web-based tests, or certain
certification exams, as reliable indicators of competency levels. But using these scores
in a standalone manner can lead to misleading results and predictions. It does happen
that some employees, who have not done a certification course, demonstrate superior
competencies than those who are certified.
Insisting on 100% accuracy of data is an obsession in some companies, which
ignores the law of diminishing returns. The cost and effort needed for achieving
incremental accuracy is often not justified by the end result. One must understand
that there will be an element of subjectivity in some types of data and hence data can
never be 100% accurate. There is a need to balance the need for accuracy with what
is practical. A fitness-for-purpose approach to data quality and quantity is advisable
and often works best.
Most of the organizations believe that competency analytics is an HR function
and hence it is their responsibility. However, much of the data required for analytics, such as productivity, efficiency, costs, etc., are outside the domain of HR. To
obtain meaningful insights, competency analytics needs information from various
data sources in the organization. Therefore, having a cross-functional team for analytics—with representation from unit heads, program managers, process function,
projects, tools, finance, and HR—with access to various data sources increases the
chances of obtaining accurate and reliable results. Any attempt at analytics by HR
alone will not yield meaningful insights.
9.3 Challenges in Using Analytics
165
c. Interpretation of results
Data and its analytics can yield dubious outputs when looked at in silos. Instead,
the data should be always looked at in its context. For instance, increase in productivity and competency index of an employee cannot be attributed to the training that
he went through; one should also look at the kind of projects that the employee executed, and his background that enabled him to perform. Without an understanding
of the context, proposing a hypothesis and concluding that the hypothesis is proven
(or otherwise), and then making hasty inferences can give misleading insights. Even
worse is using the same hypotheses (or assumptions) for different contexts. Since
competency analytics has to do with people, any errors in decision-making will have
a direct impact on employee morale with undesirable consequences for both employees and the organization. Therefore, managers should always use analytics only as
a useful aid for decision-making. The results of analytics are not to be treated as
decisions.
Most of the context of the projects or units lies with the business units. Hence,
respective unit managers should take decisions based on the results. To be effective
the task force which is a cross-functional team should be involved in driving data
collection, analysis, interpretation of results and refining the processes. The task
force should listen to feedback that will help in improving the processes and quality
of data.
d. Applying analytics on a large scale
It helps if competency analytics is implemented in an incremental manner in the
organization. A beginning can be made with a few projects (or roles). As evidence of
the usefulness of analytics is built-up and there is greater confidence in the methods
and results, implementation can be extended to other project teams and business units
of the company.
References
1. Jayawardene, V., Sadiq, S., & Indulska, M. (2015). An analysis of data quality dimensions, ITEE
Technical Report, Oct 2015.
2. Garvin, D. A. (2013) How Google sold its Engineers on Management, Dec 2013, Harvard
business review.
3. Use of workforce analytics for competitive advantage. SHRM Foundation, May 2016.
4. Davenport, T. H., Harris, J., & Shapiro, J. (2010, October). Competing on talent analytics.
Harvard Business Review.
5. Bersin, J. (2017). People analytics: Here with a vengeance. Retrieved December 16,
2017, from https://www.forbes.com/sites/joshbersin/2017/12/16/people-analytics-here-with-avengeance/#2373f63232a1.
Appendix
I. Terminology
Definitions and a brief explanation of some key terms used in this book are provided in this chapter.
Business unit: A business unit is a part of an organization having the focus on a
specific product or product family/service/geography. A business unit is usually run
like a profit center.
Company: A company is any form of business, typically considered as a
small-to-medium-sized organization and dealing with a specific product/service.
Organization: An organization is a large entity comprising of multiple business
units with each business unit with a specific business focus.
(Note: The distinction between company and organization is not as clear as their
respective definitions may suggest. The two expressions are often used
interchangeably).
People manager†: The people manager is a part of the product team and
responsible for people management-related activities like staffing, career progression, succession planning, performance management, competency development,
recruitment, employee onboarding, employee orientation, and separation activities.
Product: A product is a packaged software or application software, which is
developed in-house or by IT vendor(s) for the company’s use or for a customer
organization.
Product manager†: The product manager is part of a product team and has the
overall responsibility for defining product vision, strategy, features, and releases.
Product team: The product team is part of a business unit or a company whose
objective is to deliver a product.
Project manager†: The project manager of a product team is responsible for
stakeholder management, planning, scheduling, budgeting, and scoping the product
development or maintenance.
© Springer Nature Singapore Pte Ltd. 2019
M. Kuruba, Role Competency Matrix,
https://doi.org/10.1007/978-981-13-7972-7
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Appendix
Technical manager†: Technical manager is a part of the product team and
responsible for product technical requirements, guiding the teams for developing
the product, reviewing the product.
†
Note: For the sake of clarity, the designations Product manager, Project
manager, People Manager, and Technical Manager are defined as distinct
roles. Based on the organizational structure and role requirements, People
Manager, Project Manager, and Technical Manager can be distinct roles,
or one person may perform more than one role.
In this book, for simplification, the Product manager is the designation
used for both Product and Project managers.
Workforce: Workforce is a group of employees in an organization (or company)
assigned to a specific product(s)/project(s) or for fulfilling a common objective with
participation from one or more business units.
II. Competency Analytics Attributes
A few sample attributes for data required for competency analytics are listed below.
Depending on the purpose of analytics, one or more these attributes and associated
data can be used for analysis.
Attributes
Sample values
Academic performance
Academic qualification
Academic stream
Competency requirement
Competency level required
Competency type
Gender
Number of people required for a role
Software quality
Time to achieve required competency level
Typical learning curve
Work experience
Work location
Years spent with the organization
CGPA, % of marks
Bachelor’s, Master’s
Engineering, science
Java, Neo4j, DevOps
Level 1, Level 2, Level 3, Level 4
Technology, Tool, Process
Male, Female
20, 50
Complexity, defect density
<1 month, 1–3 months, 4–6 months
y = x127.34
<1 year, 1–5 , 6–10, >10
Bangalore, Pune
<1 year, 1–5 yrs, 6–10, >10