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 MaheshKuruba Pune,Maharashtra, India ISBN978-981-13-7971-0 ISBN978-981-13-7972-7 (eBook) https://doi.org/10.1007/978-981-13-7972-7 ©SpringerNatureSingaporePteLtd.2019 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission orinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped. 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The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, 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 manage- ment 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 peopleworkinginthemmaynotnecessarilybeoptimallyleveragedfortherolesin which they operate, thereby impacting product quality and productivity. IT companies need a framework with which to manage their workforce com- petencies 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 approachformanagementandemployeesalike,aswellasbeingalignedtobusiness 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 busi- ness decisions at strategic, tactical and operational level based on the workforce competency. At the employees’ level, it helps them in competency development andcareerprogression.Atmanagementanddecision-makinglevels,theframework 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 workforceandwanttohavethe“rightpeopleinrightroles”.Theauthordeservesto becongratulatedforproposingsuchaframework.Iamsurethisbookwillbefound 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 market- place. 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 technologytrends,andquicklyrespondtotheirmarkets’demandforbetterproducts and services. Companies that do not realize this are doomed to oblivion. Although technologyis thedrivingforceofthechangesintheindustry, itistheabilityofits workforce to adapt and respond to thechanges 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 managementsystem’sobjectivityandfairness,aswellasitsabilitytodeliveronits 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 orga- nizations 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 work- force 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 ix x 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 manage- ment practices varyfrom countryto country. These practices areinfluenced bythe local culture and have a significant effect on the quality of software. In countries likeJapan,apersonremainswithoneorganizationtillheorsheretiresfromservice. On the other hand, in the developed countries of the Western hemisphere, it is normalforpeopletobelaidoffatshortnotice(orfired),orchangejobsfrequently. However, it was also seen that frequent changes to team composition result in erosion of knowledge and know-how, which impacts software quality. Italsocame asasurprisetotheauthortofindthatdespite highemployeecosts, whichcanbeasmuchas50%inmanyITorganizations,workforcequalityremains 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 totherapidchangesintechnologyandthemarketplace.Unwillingnesstorecognize 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 frame- workwhichsupportsaholisticquantitative-basedapproachtomanagingworkforce 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 orga- nization which will result in improved performance at individual as well as com- pany 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 oftheirworkcanemploytheframeworktoassessthecompetenciesofthevendor’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 per- sonnel 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 Mahesh Kuruba June 2019