BEST PRACTICES IN SKILLS-BASED MANAGEMENT A Talent Management Component “Recommendations for Implementing a Successful Skills and Competency Management Program” SUCCESSFACTORS / WHITE PAPER BEST PRACTICES IN SKILLS-BASED MANAGEMENT Table of Contents Introduction . 3 What is Skills-Based Management? . 4 Phases of Building a Skills-Based Organization . 5 What Is A Skill? . 6 Best Practices in Skills-Based Management . 7 Phase 1: Pre-Implementation – Before the Program Starts . 8 Secure and Maintain Senior Management Commitment/Sponsorship . 8 Put Supporting Human Resource Policies in Place . 8 Identify Major Constituencies and Assure Value to Each . 9 Plan for Effective Change Management . 10 Phase 2: Implementation - Building the Skills-Based Management Program . 11 Establish a Skills Advisory Team . 11 Build Effective Skills Architecture . 12 Transfer Knowledge – Skills Management Enablement . 14 Incorporate Behavioral Competencies . 14 Attention to Detail – Attend to Small Groups with Unique Skill Sets . 15 Don’t Forget Management, Leadership, Team and Project Management Skills . 15 Phase 3: Deployment – Rolling the Program out to the Staff . 16 Establish a Realistic Skills Assessment Process . 16 Institutionalize the Skills Management Process . 17 Allow for Employee Empowerment . 17 Distinguish Between Skills Assessment and Performance . 17 Set Manager and Supervisor Accountabilities and Roles . 18 Align Courseware And Developmental Activities With Established Organizational Skills Models . 18 Capitalize on Skills Data . 19 Sustain and Maintain . 19 Summary . 20 About the author . 20 Appendix A: Skills-Based Workforce Planning Summary . 21 Appendix B: Project Planning . 23 2 SUCCESSFACTORS / WHITE PAPER BEST PRACTICES IN SKILLS-BASED MANAGEMENT Introduction Aging skill sets, retirement, new technologies, mergers, culture changes, budget constraints, and other factors put numerous companies at risk of talent loss and, as important, underutilization of people. Yet, many ignore the most fundamental solution to address the threat of under- qualified staff – establishing a skills-based organization. Whether competing globally or locally, an agile, properly skilled workforce will not only provide a significant return on investment, but also stimulate people to be more motivated, productive and fulfilled. And, most importantly, talent will be available to capitalize on growth opportunities. “Individual skills are In addition, it is found that a cross-trained staff is more nimble, corporate assets. In competitive, and efficient than a staff composed of specialists who total, they represent each have a single skill set. a company’s Establishing a skills-based organization is not as difficult as it may seem. In simple terms, two intellectual wealth things are needed: directly tied to the • Talent management processes and practices that tie skills to the various elements of those bottom line. functions and link them throughout a chain from recruitment to succession planning. Superior skills are • A comprehensive skills library that reflects the proficiency and content standards of the organization. the weapons needed in the struggle to Building a skills-based organization starts by proving its value and return on investment. Skills achieve competitive identified as core to business goals are linked to positions and roles. Standards for incumbents clearly identify requirements for success. These skills standards flow throughout the organization in a advantage.” chain that includes recruitment, assessment, career development, training, performance, workforce planning, and succession planning, and assure that people understand what is required of them as they join the organization, conduct their assignments, identify career opportunities, and more. 3 SUCCESSFACTORS / WHITE PAPER BEST PRACTICES IN SKILLS-BASED MANAGEMENT What is Skills-Based Management? Typically, Skills Management has been thought of as “skills inventories,” which have been around for decades. Ever since the first manager wanted to know the skills, abilities, talents, and other attributes of his/her employees to meet business objectives, various efforts have been made to capture this kind of information. But, then as now, collecting skills information, at least for the first time, was always easier than finding out what to do with it. The second time, of course, people lost interest because they did not gain any benefit from the first skills gathering exercise. Skills-Based Management, on the other hand, is an approach that provides real and measurable benefits to the organization. It flows through the organization and contributes to the major constituencies of the business. That includes each individual employee, managers/supervisors, training management, human resources, and senior and line management by focusing on their specific human capital needs and obligations. In simple terms, Skills-Based Management provides a “chain” of information based on a skills library at the core, that allows appropriate participants to make decisions about employee skills capabilities, recruitment of top performers, succession planning, resource management, career development, learning management, curriculum design, performance management and, most importantly, the organization’s ability to meet business goals. All of these processes are tied together to assure that the right skills exist in the organization and are maximized at every step of the way. The Big Picture Resource Management Right People Right Projects Skills Workforce Management Planning Right People Skills Gap Right Jobs Analyses Skills Library Succession Training & Planning Development Plans for Identified the Future Training Needs Career Development Career Paths 4 SUCCESSFACTORS / WHITE PAPER BEST PRACTICES IN SKILLS-BASED MANAGEMENT Phases of Building a Skills-Based Organization There are three “phases” through which an organization must travel before reaching full benefit from a Skills-Based Management Program. They are skills identification, skills acquisition and skills application. Skills Management deals with skills identification and skills acquisition. Performance Management addresses skills application in the form of how people apply their skills on the job through their assignments, objectives and tasks. Skills identification is established by the creation of skills content and proficiency standards for job titles, and followed by skills “assessment” by the individual and manager. Skills acquisition is based on the establishment of development plans and the enrichment of those skills which must be developed. Skills application is “rated” in terms of accomplishment and in the context of performance. Skills Skills Skills Identification Acquisition Application • Employee Skills • Curriculum Design • Performance Mgmt Assessment • Career Development • Project Mgmt Skills • Recruitment • Learning Mgmt • Resource Mgmt Models • Succession Planning • On-the-job Training • Talent Mgmt & • Workforce Mgmt Library • Mentoring Organizational success is based upon, among other things, having the right people in the right place at the right time. Although somewhat of a cliché, this only can happen when the “right” people are in the organization. And that starts with hiring the right people. That means having a good understanding of the skills required for open positions and making sure that people who are hired meet not only immediate requirements but have the broader set of skills for growth and development within the organization. Succession planning is not merely a description of key positions that may have to be filled. It is the establishment of a process that recruits employees, develops their skills and abilities, and prepares them for advancement, all while retaining them to ensure a return on the organization’s training investment. Succession planning involves understanding the organization’s long-term goals and objectives, identifying the workforce’s developmental needs, and determining workforce trends and estimates. 5 SUCCESSFACTORS / WHITE PAPER BEST PRACTICES IN SKILLS-BASED MANAGEMENT What Is A Skill? The most fundamental requirement to be defined before a skills-based program is implemented is determining what a “skill” means to your organization. Skill vs. Competency: A skill is the ability to apply a learned function, process or tool; Behavioral/Cultural • Customer Service expertise and proficiency relating to a specific Skills shared by everyone in the • Teamwork area of knowledge that can be demonstrated, organization • Initiative measured and verified. A competency is a behavior, attitude or fitness that is exhibited Core Skills shared • Programming through action and performance; often relates by everyone in the • System Design specific job family • System Testing to a role and the way the incumbents conduct themselves in that role; the environmental conditions as influenced by people as they Tools, products & • C++ conduct their assignments. An effective other skills relating • Java to the incumbent • Project Estimating program often combines both skills and competencies to describe the requirements of a role, title or position. In reality, a skill can be almost anything you want it to be as long as it meets the following criteria: • Definable: A skill must be able to be expressed in a language that people can understand. If it cannot be described clearly and precisely, the ability to accurately demonstrate it on the job according to organizational requirements and individual expectations is open