Global Skill Analysis Model

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Kevin Ray
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1 Framework Definition and Insights Zinnov, LLC

2 2 CONTENTS I. Introduction... 3 The Want of a Skill Appraisal System in Global Technology Organizations... 3 Zinnov Solution... 3 II. The Skill Analysis Model... 4 Model Delineation... 4 Model Framework and Methodology... 5 III Illustrative Output Scenarios... 7 Gap Analysis... 7 Peer Group Analysis... 8 Team Builder IV. Solution Offerings... 12

3 3 I. Introduction The Want of a Skill Appraisal System in Global Technology Organizations Technology organizations today while making headway in globalizing their functions are often put at a disadvantage with their talent strategy. There is neither a comprehensive skill estimating system (to track the required hard skills) nor a skill tracking system (to identify the skill and competency level of the installed talent). As a result, the HR and the performance review systems in place are not equipped to track specific hard skills, domain skills and competencies in terms of the various job functions and products nor are they in a position to bring out a quantitative assessment of the trends, changes and gaps in employee skills. This cripples a well-informed talent procurement strategy, and an effective training program with no inventory of available hard skills, required hard skills, and existing gaps thereby affecting innovation and the product and global center strategy of organizations. Zinnov Solution The Skill Analysis Model caters to the pressing need of organizations today to optimize and manage skills to get that competitive edge. As the executing agent of specialized skills human capital is now recognized as a top priority for globalization, innovation, and time-to-market with implementation of strategic human resource management practices gaining precedence and lending competitive advantage to businesses operating across national boundaries. The Skill Analysis Model arises from this core theory and from an observed gap among technology organizations in tracking the required hard skills and in assessing their employees hard skills, domain skills and competencies. It addresses the need for a well-chalked out futuristic strategy with a continuous human capital capability management and skill monitoring system to enable global centers achieve their goals.

4 4 II. The Skill Analysis Model Model Delineation Designed to address the growing need among organizations to define their product and global center roadmaps as well as to understand the skills required in future for various products, the Skill Analysis Model covers one of the key aspects of global talent planning. Any attempt to define the future roadmap of a business in terms of skill set required, competency level, products, and the global center in question necessitates a detailed understanding and estimate of the existing skill set within the organization. This facilitates global talent planning and helps figure out the gaps and the viability of executing a product at a particular center by answering the talent availability question. A product requirement-wise estimate of skills distribution further helps arrive at an approximation that is critical in identifying skills and team composition required for executing a product, and identifying the center that would be best suited for supply of this skill set. The model features as a reliable system that regularly estimates hard skills, domain skills and competencies of employees across centers of an organization giving a fair view of the skills distribution both in terms of employee and from the product requirement perspective. The model is driven by data collected from surveys designed specifically for various levels of organizational hierarchy and is equipped with data from a thorough analysis of hard skills, domain skills and competencies. Apart from drawing an estimate of skill distribution by product family, job level, reporting structure and function at different global centers, it also highlights gaps at different global centers and variations in expertise level within the same skill set thereby facilitating a foresighted talent strategy and training program. Figure 1 gives a view of the Skill Analysis Model.

5 5 Figure 1 Skill Analysis Model Model Framework and Methodology The Skill Analysis Model is driven by a robust methodology. The preliminary exploratory research of understanding the current and future skills-sets comprises the groundwork against which an organization s structure, job roles, and internal availability of skills are reviewed. At the core of the model lie several levels of research, survey, validation and cross-validation to understand the skills required in future, the existing skills, the proficiency level, the gaps and the trainings required. The list of hard and domain skills required by product family, job level and function are defined followed by high-level interviews to validate skills requirements for groups and teams as well as to gain a perspective on the current skill set availability, future requirements, challenges etc. These inputs help develop a skill library and a framework of questions in the form of a survey to understand how employees rate themselves on hard skills, domain skills and competency metrics followed by a validation constituting the managers rating of the employees. Similarly, directors validate the managers self-assessment on managerial competency metrics. This exercise facilitates an optimum and detailed skill perception across the organization while highlighting the gaps arising from self-assessment and manager review. Figure 2

6 6 gives an illustrative view of the employees self-rating, the managers rating of the employees, and projected differences. Figure 2 Employees Self-rating and Managers Rating The organization skill review as such is approached from a three-pronged mechanism comprising employees self-assessment through employee survey and validation by managers, managers selfassessment through managers survey followed by validation, and identification of ideal skills required for projects based on near-future requirements as understood by directors, which constitutes the profile builder the ideal skill requirement and team composition data. With experience of overseeing the development of various products over time, long-term thinking and an understanding of near-future requirements based on market trends, directors are ideally positioned to provide inputs that constitute data for the profile builder the optimum data point for the ideal team composition and the skill levels required for various products. The model built on inputs from all the three sources provides a comparative data featuring the gaps between the employee survey, manager survey and the profile builder. It allows the user to select a scenario based on product group, manager, and location. It further allows the user to generates excel reports based on the survey. With various permutations and combinations, one can draw as many as

7 300 charts and viewpoints across multiple skills, job levels and locations. These reports can be generated on an overall level, at the product level, the manager level or the employee level.

7 7 300 charts and viewpoints across multiple skills, job levels and locations. These reports can be generated on an overall level, at the product level, the manager level or the employee level. III Illustrative Output Scenarios Gap Analysis The figure below is an illustrative output chart of the gap analysis for sub-skill.net which falls under the skill, Object Oriented Programming. Figure 3 Output Chart of Gap Analysis

8 8 The headcount chart above indicates: Lower job levels (job level A to C) have fewer employees than what they should ideally have Middle job levels (job level D to E) have more employees than what they should ideally have The inference points to a headcount distribution that is top-heavy as opposed to the ideal structure. The skill gap analysis chart indicates: Job levels B employees are overqualified as they have rated themselves higher than the ideal rating and their managers too have acceded to the rating. Job levels C to E show a similar rating by employees and managers. Job levels C and D are under-qualified as per the ideal rating. Observation: Job level B has fewer but overqualified employees for their position. The company needs to promote these people to a higher level and hire new talent for replacement. Job level C has fewer employees with skills at par with the required ones. Hence the organization needs to hire more people or promote the ones in job level B to Job level C. Job level D has more employees but most of them are under-qualified for their position. This calls for immediate attention and figures as a graver issue. Job level E has more employees than what is ideally required. Peer Group Analysis Figure 4a is an illustrative output chart of the peer group analysis, which is aimed towards analyzing where an employee stands as compared to his peers.

9 Figure 4a Peer Group Analysis Chart The chart shows the following selections to run the analysis: Employee by name, which generates the employee s information with regard to function, product

9 9 Figure 4a Peer Group Analysis Chart The chart shows the following selections to run the analysis: Employee by name, which generates the employee s information with regard to function, product group, job level, manager and location Parameters to define the peer group for the selected employee. Function and product group are parameters selected in the chart. Skill Type to indicate whether the employee is being analyzed for hard skills, domain skills or competency Observation: The model generates the Peer Group Size (which is 11 here) to indicate the number of employees who fall under the selected options. The model generates the data of these employees for competency. Figure 4b shows an illustrative chart of the hard skill, Database Technologies, where the proficiency of an employee is rated against that of his peers, both in terms of self-evaluation and manager rating. The X-

10 10 Axis indicates the multiple sub-skills within Database Technologies and the Y-Axis indicates the proficiency level. Figure 4b Database Technologies Chart The Database Technologies chart indicates: For MS SQL Server, the peer group (blue bar) has rated itself on an average of 3, and the managers (green bar) have rated them on an average of 3.5. The employee s self-rating (red dots) stands at 1 while the manager rates (blue dots) him as 2 on this sub-skill. For Oracle, the employee has rated himself as 1 while the manager s rating stands higher at 2. For JDBC the employee has rated himself higher than his peers and his manager s rating concedes with the self-rating For SQL the employee has rated himself lower than his peers while the manager feels that he rates above his peers Overall, the employee has rated himself lower than his peers while the manager feels that he rates above his peers Observation: The chart draws a very vivid and comprehensive skill proficiency review of the employee as compared to his peers There is an observable gap between the employee s perception of his skill proficiency and his manager s perception which is consistently higher This can be attributed to his outstanding expertise in SQL and JDBC The employee does not seem to be too good in MSQL and Oracle The chart clearly highlights the precise strong areas of the employee in Database Technologies that help him score nearly the same as his peers in terms of skill proficiency.

11 Team Builder The figure below is an illustrative output chart of the Team Builder, which has the objective of looking at employees who have a certain minimum specified rating in three specified

11 11 Team Builder The figure below is an illustrative output chart of the Team Builder, which has the objective of looking at employees who have a certain minimum specified rating in three specified skills and their sub-skills. The Team Builder serves the purpose of identifying by product requirement the set of employees with the precise skill, sub-skill and proficiency to execute the product as a team. Figure 5 Team Builder The chart shows the following selections to run the analysis: The Function and Product Group to be analyzed that are indicated as Development and Animation here A selection of three different hard skills and one sub-skill for each this requirement selection is expandable to many more skill criteria. Selection of the minimum proficiency required for each sub-skill Observation:

12 12 The Team Builder generates details of all the employees who meet the specified criteria based on self-rating and manager rating. It helps build teams instantly for multiple products across the precise skill and proficiency level requirements. The Team Builder results applied for Peer Group Analysis can facilitate further filtering and help identify the most competent set of employees for a particular product. IV. Solution Offerings We are in the midst of a global transformation with changes affecting various industries as well as the global labor force. At such a time an organization can derive multi-pronged benefits from deploying the Skill Analysis Model: The model provides an analysis of organization-wide skill inventory in terms of hard skills, domain skills, job level, skill-wise headcount and competencies. With the complexity of a workforce distributed across various experience and functional levels across global centers, the skill analysis model enables a quick talent ramp up at the headquarter location and the global centers. It helps save on people cost, improve efficiency and implement required trainings. The peer group analysis gives a very precise and detailed picture of how an employee rates in comparison to his peers. The profile builder comprising the ideal skill requirement, competency level and team composition data gives a ready estimate of the product-wise skills requirement, plays a crucial role in global center and talent roadmap and assists in talent planning and team composition. The current and future skill set requirement by product give a high-level view of the skill availability for a particular product. It provides an estimate of the near-future skills required for various products. The model highlights the gaps in capabilities and competencies. It gives a view of all global teams where the current state of skills can be understood and reviewed in line with long-term plans. The gap analysis in skill proficiency also caters to training requirements or external talent requirements depending on the situation.

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An Overview of Global R&D Benchmarking Service Zinnov LLC

An Overview of Global R&D Benchmarking Service Zinnov LLC This document is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution