Description
This project work is a submitted for partial fulfillment of my Fellowship from AHRB / CAMI on Certified Organization Developement Analyst
Software Development Company
Project Report Certified Organization Development & Analyst
CODA
By Puli. Srinivas Rao
12
Project Report On Certified Organization Development Analyst
This document was created on 1st July 2012 as part of my project work, contains Assignments and it is prepared and submitted for the purpose of partial fulfillment for Fellowship from ASIAN HR BOARD – AHRB / CAMI – USA. During the month of July 2012. This template is a draft document that has been as a working template for an IT Organization Company based in Hyderabad. Submitted by Puli. Srinivas Rao
AHRBHYD0211010
Acknowledgement
Its great pleasure to have worked on a Project work on CODA for An IT organization as part of my AHRB – Fellowship Program, Certified Organization Development & Analyst – CODA. This project work has been carefully carried out taking the courseware, workshop conducted by experts, on the job work experience of the aspirant & books referred which were recommended in the courseware – CODA. I would like to express my sincere thanks to the entire team of AHRB, CAMI & MEC for conducting such a value based program & designed a well structured, informative courseware to all participants. I take this opportunity to express my profound gratitude and respect to my Faculty Mr. Ronald Raj, He introduced me to this topic of Organization Development & Analyst, which has created lot of interest, his support and guidance has inspired me to put in the right efforts for this assignment. Thank you Srinivas Rao Puli. CODA - AHRB. (Fellow Aspirant)
S. No 1 2 3 4 5 6 7 8 Introduction
Table of Contents Acknowledgement
History of Organization Development Organization Development – An overview Benefits of Organization Development Process of Organization Development Assignment Conclusion
Introduction
Organizational development is the application of behavioral science principals to improve the functioning of organizations. Organizational development is a strategic, proactive approach to the internal management of an organization. It is concerned with deep elements of culture and values and with helping people and organizations to achieve positive growth through planned and managed change. Hand in hand with the broad discipline of Human Resources, the practice of Organization Development (OD) has emerged over the past several decades and has been instrumental in the successful transformation of countless organizations worldwide. As a subset of Industrial and Organizational Psychology, OD has been defined by many. Here is a popular definition from Warner Burke, a pioneer theorist and practitioner in the field: Organization Development, commonly referred to as "OD," has been explained as a general consideration of how work is done and what the people who carry out the work believe and feel about their efficiency and effectiveness. The emphasis is on "development," which means that people's capability in creating their own improvement, learning and development is enhanced. The ability to change is now a minimum success requirement for the modern organization. Particularly in the digital world, companies need flexible, adaptive cultures. In order to remain aligned with their strategic environment, they need to be learning organizations with the ability to change embedded within them. And they need strong, strategic leadership.
____________________________________________________________ Organization Development Organizational development is an ongoing, systematic process to implement effective change in an organization. Organizational development is known as both a field of applied behavioral science focused on understanding and managing organizational change and as a field of scientific study and inquiry. It is interdisciplinary in nature and draws on sociology, psychology, and theories of motivation, learning, and personality. History of Organization Development In the late 1960s organizational development was implemented in organizations via consultants, but was relatively unknown as a theory of practice and had no common definition among its practitioners. Richard Beckhard, an authority on organizational development and change management, defined organizational development as "an effort, planned, organizationwide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization's processes, using behavioral-science knowledge" (Beckhard 1969). Throughout the 1970s and 1980s organizational development became a more established field with courses and programs being offered in business, education, and administration curricula. In the 1990s and 2000s organizational development continued to grow and evolve and its influences could be seen in theories and strategies such as total quality management (TQM), team building, job enrichment, and reengineering.
Rationale & Implementation Organizational development takes into consideration how the organization and its constituents or employees function together. Does the organization meet the needs of its employees? Do the employees work effectively to make the organization a success? How can the symbiotic relationship between employee satisfaction and organizational success be optimized? Organizational development places emphasis on the human factors and data inherent in the organization-employee relationship. Organizational development strategies can be used “to help employees become more committed and more adaptable, which ultimately improves the organization as a whole”. The organizational development process is initiated when there is a need, gap, or dissatisfaction within the organization, either at the upper management level or within the employee body. Ideally, the process involves the organization in its entirety, with evidenced support from upper management and engagement in the effort by all members from each level of the organization. To launch the process, consultants with experience in organizational development and change management are often utilized. These consultants may be internal to the company or external, with the cautionary understanding that internal consultants might be too entrenched in the existing company environment to effectively coordinate and enforce the action plans and solutions required for successful change. Data analysis through task forces, interviews, and questionnaires can illuminate likely causes for disconnects throughout an organization. These gaps can then be analyzed, an action plan formed, and solutions employed. This is by no means a linear process, nor is it a brief one. Feedback from all constituents should be elicited throughout the process and used to make adjustments to the action plan as necessary. Constant monitoring during the entire implementation effort is important for its success and acceptance.
The Future of Organizational Development There are contradictory opinions about the status and future prospects of organizational development. Is it a theory whose time has come and gone? Does its basis in behavioral science, a "soft" science, make it unappealing? What are the challenges for the future? An article by Bunker, Alban, and Lewicki proposes six areas that could revitalize the field of organizational development in the future: virtual teams, conflict resolution, work group effectiveness, social network analysis, trust, and intractable conflict. These authors suggest that focusing on these areas will help bridge the gap between research theory (i.e., academics) and practice (i.e., consultants). Getting these two groups to communicate with each other will benefit both groups and promote organizational development efforts. In a survey conducted by Church, Waclawski, and Berr, twenty individuals involved in the study and practice of organizational development were questioned about their perspectives and predictions on the future of the field. The most in-demand services, according to those polled, are: 1. Executive coaching and development 2. Team building and team effectiveness 3. Facilitating strategic organizational change 4. Systemic integration 5. Diversity and multiculturalism. They list the daily challenges in the field as the need for speed, resistance to change, interpersonal skills and awareness, and differentiating organizational development, which refers to the variety of definitions of organizational development among practitioners and how this impacts consultants, clients, and the clients' needs. The opinions on the future direction of the field vary among its practitioners. Nevertheless, the continuing interest in and value of optimizing an organization's needs and goals with the needs, wants, and personal satisfaction of its employees indicate that organizational development will continue to be relevant to and vital for organizational reform in the future, either in its present form or through evolution into other theories and practices.
An Overview - Organization Development
What is Organization Development? Organization Development (OD) is the process of improving organizations. The process is carefully planned and implemented to benefit the organization, its employees and its stakeholders. The client organization may be an entire company, public agency, non-profit organization, volunteer group - or a smaller part of a larger organization. The change process supports improvement of the organization or group as a whole. The client and consultant work together to gather data, define issues and determine a suitable course of action. The organization is assessed to create an understanding of the current situation and to identify opportunities for change that will meet business objectives. OD differs from traditional consulting because client involvement is encouraged throughout the entire process. The ways in which people communicate and work together are addressed concurrently with technical or procedural issues that need resolution.
Why is Organization Development Important
Profitability, productivity, morale and quality of work life are of concern to most organizations because they impact achievement of organization goals. There is an increasing trend to maximize an organization's investment in its employees. Jobs that previously required physical dexterity now require more mental effort. Organizations need to "work smarter" and apply creative ideas. The work force has also changed. Employees expect more from a day's work than simply a day's pay. They want challenge, recognition, a sense of accomplishment, worthwhile tasks and meaningful relationships with their managers and co-workers. When these needs are not met, performance declines. Today's customers demand continually improving quality, rapid product or service delivery; fast turn-around time on changes, competitive pricing and other features that are best achieved in complex environments by innovative organizational practices. The effective organization must be able to meet today's and tomorrow's challenges. Adaptability and responsiveness are essential to survive and thrive.
What do Organization Development Consultants Do
OD consultants custom tailor established social science theory and methods to organizations seeking to improve profitability, productivity, morale and/or quality of work life. Examples of activities which are facilitated by OD consultants are: o o o o o o o o o o o o o o o o o o Teambuilding Goal Setting Group Facilitation Creative Problem solving Strategic Planning Leadership Development Management Development Career Management Conflict Resolution Developmental Education Interpersonal Communication Human Resources Management Managing Workforce Diversity Organization Restructuring High Involvement Work Teams Sociotechnical Systems Design Technical Training Total Quality Management
Often described as "change agents," OD consultants come from varied backgrounds with experience and training in organization development, organization behavior, psychology, education, management and/or human resources. Many have advanced degrees and most have experience in a variety of organizational settings. Company cultures are like country cultures. Never try to change one. Try, instead, to work with what you've got.”- Peter Drucker
Benefits of Organization Development ? Change throughout the organization ? Greater motivation ? Higher Job Satisfaction ? Reduce absenteeism ? Increased productivity ? Low turnover ? Better quality of work ? Improved Teamwork ? Better resolution of conflict ? Commitment to objectives ? Increased willingness to change ? Creation of learning individuals and groups
Never doubt that a small group of thoughtful, committed people can change the world, indeed it sis the only that ever has!" - Margaret Meade
Process of Organization Development
The process of Organizational Development comprises of follows steps and they are:-
1. Initial Diagnosis 2. Data Collection 3. Data Feedback 4. Selection of Interventions 5. Implementation of interventions 6. Action planning and problem solving 7. Team Building 8. Inter-Group Development 9. Evaluation and Follow up
1. Initial Diagnosis: The initial diagnosis refers to finding the inadequacies within the organization that can be corrected by OD activities then it is necessary to find out the professionally competent persons within organization to plan and execute OD activities. The outside consultants can be also employed to help in diagnosing the problems and diagnosing OD activities. The consultants adopt various methods and that primarily includes interviews, questionnaires, direct observation, analysis of documents and reports for diagnosing the problem.
2. Data Collection: The survey method is employed to collect the data for determining organizational climate. It also helps in identifying the behavioral problems that are rising in the organization. 3. Data Feedback: The collected data are analyzed and reviewed by various work groups that are formed for this purpose. It is done in order to intervene in the areas of disagreement or confrontation of ideas or opinions. 4) Selection of Interventions: The interventions can be described as the planned activities that are introduced into the system to achieve desired changes and improvements. The suitable interventions are to be selected and designed at this stage.
5) Implementation of Interventions: The selected intervention should be implemented progressively as the process is not a one shot, quick cure for organizational problems. Consequently, it achieves real and lasting change in the attitudes and behaviour of employees.
6) Action Planning and Problem Solving: To solve the specific and identified problems by using the collected data, groups prepare recommendations and specific action planning.
7) Team Building: The consultants explain the advantages of the teams in OD process and encourage the employees throughout the process to form into groups and teams.
8) Inter-group Development: After the formation of groups/teams, the consultants encourage the inter-group meetings, interaction etc. 9) Evaluation and follow up: The organization should evaluate the OD programmes and should find out their utility, and develop the programmes further for correcting the deviations. The consultants make great significance to the organization in this respect. The entire steps in the OD processes should be followed by the organization in order to derive full range of OD benefits.
A Brief Understanding Of the History of Business Excellence Models Business Excellence is “excellence” in strategies, business practices, and stakeholder-related performance results that have been validated by assessments using proven business excellence models. Business excellence models guide organizations towards sustainable world-class business results, and are based on business principles that have been proven to work. These business principles—or core concepts—are similar for most business excellence models. The Stage The first business excellence models were developed in the mid-1980s and came about as a result of the quality movement in the West, which in turn was a response to the advancements in quality and competitiveness in Japan. The models themselves began as quality award or Total Quality Management (TQM) models, as TQM had emerged in the mid-1980s as the new philosophy and panacea for businesses. Over time, the term “Business Excellence” started to replace the terms “Quality” and “TQM”, partly as a result of the considerable confusion as to the meaning of TQM, since all types of business improvement programs were being called TQM1. Today, many countries view business excellence models as a key mechanism for improving the performance of organizations, as well as national competitiveness. Business Excellence Models Several business excellence models are in use today. The models are designed to guide and help organizations to improve their performance and achieve world-class performance levels. In addition, national bodies use business excellence models as a basis for award programs, which serve to identify and recognize role model organizations. However, for most national bodies, the awards themselves are secondary in importance to their desire to achieve widespread take up of the business excellence concepts by organizations, since it is this that leads to improved national economic performance. For example, in 2001, Link and Scott made a conservative estimate of the net social benefits associated with the Malcolm Baldrige National Quality Award program. They found that the ratio of economy-wide benefits to US federal government costs in supporting the program exceeded 207:1. The vast majority of organizations use business excellence self-assessments to identify opportunities for improvement—as well as their areas of strength—and put in place actions to move forward. When used as a basis for an organization’s improvement culture, the business excellence model criteria broadly channel and encourage the use of best practices into areas where their effect will be most beneficial to performance. The best-known business excellence models are the Baldrige Criteria for Performance Excellence and the EFQM Excellence Model. These models are described below, as is the Deming Prize. The Deming Prize was created in 1951 and played an instrumental role in Japan’s quality movement and economic success. It is viewed by many as the precursor to the current business excellence models and awards, and still operates today.
The Baldrige Criteria for Performance Excellence The Malcolm Baldrige National Quality Award was created in the USA in 1987. Its key aim was to improve competitiveness in US companies, particularly by promoting the development of quality in response to strong competition from Japanese companies. The award model and its criteria are based on the following core values and concepts: • Visionary leadership • Customer-driven excellence • Organizational and personal learning Valuing employees and partners • Agility • Focus on the future • Managing for innovation • Management by fact • Social responsibility • Focus on results and creating value, and • Systems perspective.
These values and concepts underpin the model’s seven criteria, which are shown in Figure 1. Table 1 provides a comparison of the criteria used in the Baldrige and EFQM models.
The EFQM Excellence Model Joe Goasdoué , chief executive of the British Quality Foundation, wrote that the EFQM Excellence model is based on the premise that the fundamentals of running a successful organization in the public, private or voluntary sector are the same, irrespective of type or size of organization to which they are applied. The model is based on the following core principles: • Results orientation • Customer focus • Leadership and constancy of purpose • Management by processes and facts • People development and involvement • Continuous learning • Innovation and improvement • Partnership development, and • Corporate social responsibility.
The nine criteria that emerge from these are represented in Figure 2. These criteria are divided into two categories: enablers and results. The first five criteria are the enablers and represent the activities of the organization, while the results represent the level of performance achieved.
Comparison between Baldrige & EFQM: BALDRIGE CRITERIA FOR PERFORMANCE EXCELLENCE EFQM EXCELLENCE MODEL CRITERIA develop and
Leadership: How do an organization’s senior Leadership: Excellent Leaders leaders guide and sustain that facilitate the achievement of an Organization? The criterion also examines the organization’s governance structures and looks at how it addresses its ethical, legal and community responsibilities.
Strategic Planning: How does an organization develop strategic objectives and action plans? The criterion examines how they are deployed and changed (when circumstances dictate) and looks at how progress is measured. People: Excellent organizations manage, develop Customer and Market Focus: How does an and release the full potential of their people at an organization determine the requirements, needs, individual, team-based and organizational level. expectations and preferences of its customers and They promote fairness and equality and involve the market? This criterion examines how the and empower their people. They care for, organization builds relationships with the communicate, reward and recognize, in a way that customers and determines the key factors that lead motivates staff and builds commitment to using to customer acquisition, satisfaction, loyalty and their skills and knowledge for the benefit of the
Organization’s mission and vision. They develop organizational values and systems required for sustainable success, and implement these via their actions and behaviors. During periods of change they retain a constancy of purpose. Where required, such leaders are able to change direction of the organization’s direction and inspire others to follow
retention, as well as to business expansion and organization sustainability. Policy and Strategy: Excellent organizations Measurement, Analysis, and Knowledge implement their mission and vision by developing Management: How does an organization select, a stakeholder-focused strategy that takes into gather, analyze, manage and improve its data, account the market and sector in which it operates. information and knowledge assets, and how does it Policies, plans, objectives and processes are manage its information technology? This criterion developed and deployed to deliver strategy. also looks at how an organization reviews—and Partnerships and Resources: Excellent uses reviews—to improve its performance. organizations plan to manage external Workforce Focus: How does an organization engage, manage and develop the workforce to utilize its full potential in alignment with its overall mission, strategy and action plans? This criterion also examines the ability to assess workforce capability and capacity needs, as well as to build a workforce environment that is conducive to high performance. partnerships, suppliers and internal resources in order to support policy and strategy and the effective operation of processes. During planning (and whilst managing partnerships and resources), they balance the current and future needs of the organization, the community, and the environment.
Processes: Excellent organizations design, manage Process Management: How does an organization and improve processes in order to fully satisfy— determine its core competencies and work systems and generate increasing value for—their customers to deliver customer value and achieve and other stakeholders. organizational success and sustainability? This People Results: Excellent organizations criterion also examines emergency preparedness. comprehensively measure and achieve outstanding Results: This criterion examines an organization’s results with respect to their people. performance and Customer Results: Excellent organizations Improvement in all key areas: product and service outcomes, customer-focused outcomes, financial and market outcomes, workforce-focused outcomes, process effectiveness outcomes and leadership outcomes. Performance levels are examined in relation to those of competitors and other organizations that provide similar products and services.
Comprehensively measure and achieve outstanding results with respect to their customers. Society Results: Excellent organizations comprehensively measure and achieve outstanding results with respect to society. Key Performance Results: Excellent organizations comprehensively measure and achieve outstanding results with respect to the key element of their policy and strategy.
The Deming Prize :In July 1950, the Union of Japanese Scientists and Engineers (JUSE) invited Dr. W. E. Deming (1900 - 1993), one of the foremost experts of quality control in the United States, to deliver a number of courses on quality control and, in particular, statistical quality control. The late Dr. Deming’s teachings had an impact on the Japanese quality movement and,
consequently, the Deming Prize was established in his honor in 1951. The prize has two categories: • The Deming Prize for Individuals: An annual award is given to individuals that have made outstanding contributions to the study of TQM or statistical methods used for TQM, or to individuals that have made outstanding contributions in the dissemination of TQM; • The Deming Application Prize: An annual award is presented to an organization that has achieved distinctive performance improvements through the application of TQM. The prize is open to organizations in all sectors - public or private, large or small, or domestic or overseas. Furthermore, a division of a company that manages its business autonomously may apply for the prize separately from the company. Unlike the previous two models, the Deming Prize does not specify set criteria for examination during the award process, and therefore is not used for self-assessment. The applicant organization is expected to show an understanding of its current situation, establish its own themes and objectives, and improve and transform itself company-wide. The award process examines not only the current results that have been achieved, but also the effectiveness that is expected in the future. The examiners assess whether the themes established by the organization were commensurate to its situation, whether its activities were suitable to its circumstances, and whether or not its activities are likely to lead it to achieving its future objectives. The Prize Committee views the examination process as an opportunity for “mutualdevelopment” rather than “examination.” In recent years in Japan, the Japan Quality Award has become more popular than the Deming Prize. The Japan Quality Award was established in 1995 and is based on the Baldrige Criteria for Performance Excellence. Why Baldrige? Baldrige has holistic approach for performance excellence. This accelerates improvement effort, energize employees. This not only helps in gaining an overall perspective of business but also helps to remain focused on results and provides a strong learning tool through its feedback process.
PROJECT OBJECTIVE “Diagnosis of the Current Organization using Malcolm Baldrige Excellence Model” The primary objective of diagnosing the Organisation using the Malcolm Baldrige Excellence Model is to assess the performance of the Organization and to create a foundation for the way forward towards continuous improvement of the Organization performance. The project study has been undertaken with following objective: 1. To facilitate communication and sharing of best practices information among all levels. 2. To help improve performance practices, capabilities and results 3. To serve as a working tool for understanding and improving performance and for guiding planning and opportunities for learning i.e., - a systems approach to organization-wide goal alignment and - a goal-based means to diagnose the effectiveness of the organization and to devise an improvement plan from the diagnosis. The framework to support this project are in line with the Baldrige Model as the Model provides a systematic approach for continuous improvement in the areas which are critical for attaining better results, therefore, the framework support the organization in use of an aligned approach towards organizational performance management. Baldrige Criteria for Performance Excellence Framework – A Systems Perspective To begin with the the diagnosis the Baldrige Model framework has been placed hereunder as the same has been preferred to be used as the basic criterion for the current organizational diagnosis.
SECTION II Performance excellence — Scoring Pattern P. Preface: Organizational Profile P.1 Organizational Description P.2 Organizational Scan P.3 Porters 5 Force Model CATEGORIES AND ITEMS VALUES 1. Leadership 1.1 Senior Leadership 1.2 Governance and Societal Responsibilities 2. Strategic Planning 2.1 Strategy Development 2.2 Strategy Deployment 3. Customer Focus 3.1 Customer Engagement 3.2 Voice of the Customer 4. Measurement, Analysis and Knowledge Management 4.1 Measurement, Analysis, and Improvement of Organizational Performance 4.2 Mgmnt of Information, Knowledge, and Information Technology 5. Workforce Focus 5.1 Workforce Engagement 5.2 Workforce Environment 6. Process Management 6.1 Work Systems 6.2 Work Processes 7. Results 7.1 Product Outcomes 7.2 Customer-Focused Outcomes 7.3 Financial and Market Outcomes 7.4 Workforce-Focused Outcomes 7.5 Process Effectiveness Outcomes 7.6 Leadership Outcomes TOTAL POINTS 120 70 50 85 40 45 85 40 45 90 45 45 85 45 40 85 35 50 450 100 70 70 70 70 70 1,000 POINT
Assignment
First Stage Company which was taken for assignment IT Product Development.
Second Stage
Business Objective & Understanding Customers Need.
Third Stage
IT Product Development Company
Fourth Stage
Applying Malcolm Balridge Perspective to the Organization.
Fifth Stage
Applying PCMM Perspective to the Organization.
Sixth Stage
Conclusion
About IT Product Development Organisation.
IT (Software Industry): The Company is into Software Product Development and is a 100% Export Oriented Unit (EOU) specializing in Software Development using latest technologies in Java, Dot Net, Oracle; providing service to clients in Infrastructure/Technology/Banking/Financial Domain, Globally. Its main base is at Singapore; it has clients all over European sector and also at Asia Pacific (APAC) & Middle East (ME). It has in its independent operations in India, with the development centre based out of Hyderabad, Andhra Pradesh. The Parent Company at Singapore is in existence since last 13 years and its Indian Company is operational since last 12 yrs. Core Functional Group: The most Important / Core functional group of the company is the Technology (Software Development SD) Group, which comprises 80% of the total staff strength of the Organization. Company Strategy: The company follows a “Build Strategy” concept whereby it emphasizes more on Training, Motivation & Retention of its employees; in creating Customer Value, in Building Sustainable Competitive Advantage and in Developing Sustainable Growth Strategies. SECTION - II Analysis of the Current Organization using PCMM: The present organization analysis in this part of the project assignment has been done based on the parameters laid under the People Capability Maturity Model (PCMM) i.e., how the organisation has evolved over a period of years since its inception, with particular reference to the functioning of its Independent Company Operating from India. The IT Company since its operation had been constantly using methodologies to develop and refine the Organization's Software Development (SD) Process. In true sense, it had been following an evolutionary path of increasingly organized and adopting systematically more mature processes, as in the PCMM model. From time to time, the present IT (SD) Company had been addressing all its People as well as Software Engineering issues in a continuous & planned manner so as to advance its workforce processes & development methodologies. The analysis of the current IT (SD) Company has, therefore, been presented hereunder based on the PCMM's Five Maturity Levels Processes: Phase 1 of the IT (SD) Company
This has been related with PCMM’s 1st degree i.e., the Initial Level ? When the Indian Operations was set up independently & it started its operations way back in 2001, the people processes were quite disorganized. ? The groups of employees were divided by job functions. ? Each person shared related information within the groups. ? A little bit of success the Organization had in those early stages were depended on individual efforts and were not considered to be repeatable, because processes were not sufficiently defined and documented to allow them to be replicated. Phase II of the IT (SD) Company This has been related with PCMM’s 2nd degree i.e., the Repeatable Level ? As the IT firm progressed through the years, it was observed from the company history that project management techniques were established and some of the successes could be repeated (please note, not all of them), because the most basic requisite processes to some extent had been also defined and documented. ? It was also noticed that resources were departmental-bound. ? The record also showed the organization felt the need to link resources internally. Some important databases were found shared between departments or groups that were on working projects. ? However, no one seemed to be accountable or took care to update or validate those documents. ? Some redundancies and obsolete information existed; that could have lead to costly mistakes too. Phase III of the IT (SD) Company This has been related with PCMM’s 3rd degree i.e., the Defined Level ? Subsequently, the Organization developed its own standard processes through greater attention to documentation, standardization and integration. ? The Management then seemed to have felt the need to integrate partners and customers with their services or products. ? Inputs from them and also employees were seen to be aligned, updated and validated in the process(es). ? As a result a structured system was established, with an increase of productivity and effectiveness amongst employees.
Phase IV of the IT (SD) Company This has been related with PCMM’s 4th degree i.e., the Managed Level ? By this stage, the Organization attained more maturity as it was noticed that the current IT Company had started monitoring and controlling its own processes through data collection and analysis. ? Some client’s accreditations on this aspect could also be seen in the company records. ? The company also had well planned strategies to expand its business domain to untapped sectors. ? Further, with an ultimate pre-defined objective to generate more revenues for the company, communities of practices had been actively involved in seeking ways to improve business processes, thus offering a world class customer service; with everyone in the company being independent and proactive to get the job done, with minimum time. Phase V of the IT (SD) Company This has been related with PCMM’s 5th degree i.e., the Optimizing Level ? The years that followed, processes are now being constantly improved by the company through monitoring feedback from current activities and introducing innovative practices to better serve the organization's specific needs. ? In the present stage the company had already well expanded to other untapped business areas/sectors in the Middle East & some more parts in Asia-Pacific region. ? And, in all sense it can be said that today this IT Company has truly matured in its operations and is a tough competitor to others operating in similar domain. Note: This is the most desired phase for the organization, when the expertise of managing people & knowledge is seen converted into monetary revenues and advices sought from experts to emulate the exemplary success. The company evolved to understand that success and maturity are dependent on a broad set of capabilities that cross processes, infrastructure and people. It also felt the need for organizational intent and support in the form of top-down communications, funding, governance and cultural change. Presented below (in gist), is the current IT Organization’s Growth & Progress as has been tracked since the inception year until now:
Year ‘2001
Progressive Growth of the IT (SD) Company - Year of inception - No planned activities for people management - Workforce practices applied without analysis of impact. - Knowledge collection and creation relied on a personal level.
Parallel to PCMM Level 1. Initial
2002-03
2004-06
2007-09
2010onwards
- Had very simple activities and people management planning. - Users were facilitated to reuse the information. - Managers started taking responsibility of managing & developing the workforce. - Strategy and plans were in place for people & knowledge management. - Had constructed a uniform passage for process sharing management. - Had developed workforce competencies & workgroups & noticeable alignment with business strategies. - Constructed effective system to collect, reuse and communicate information. - Empowered & integrated workforce competencies, managed quantitatively. - Developed maturity & capability to use people & process management for strengthening the organization and create competitiveness. - Showing continuous improvement & innovation(s).
2. Repeatable
3. Defined
4. Managed
5. Optimizing
SECTION-III Stage-wise Detailed Analysis of the Organization vis-à-vis PCMM:
Part A: Functional Layout Before getting into specific analysis of each level of the PCMM with respect to the current IT company undertaken for this project study, it is significant to understand the company’s basic functional divisions, broadly classified as under: Software Development Group - SDG Web Technology Group – WTG Quality Control – QACs Marketing Group – MTG System Networking Information Group – SNIG Services Group – HR, Admin., Finance
IT (SOFTWARE) INDUSTRY (Functional Units)
Technology Software Development Group (SDG) ? Core Functional Unit ? 80% staff strength
OTHERS
WEB TECHNOLOGY GROUP (WTG)
QUALITY CONTROL (QAC)
MARKETING GROUP (MTG)
SYSTEM NETWORKING INFRASTRUCTURE GROUP (SNIG)
SERVICES SUPPORT GROUP (HR, Admin, Finance)
Part B: Stage-wise Analysis of the Company based on PCMM parameters
Organization Diagnosis using PCMM Model
PCMM Maturity Level 1 - The Initial Level (Inconsistent Management) (IT (SD) Company – during the preliminary years of inception 2000-01) Since Level 1 under PCMM is not decomposed into several key process areas, unlike other 4 Levels that indicate the areas an organization should focus on to improve its workforce capability, therefore, this is not taken up in detail except for what has been already mentioned in the previous sections corresponding to this Level. PCMM Level 2 – Repeatable (Performance Centricity): (IT (SD) Company – situation as in the Year 2002-03) As the company progressed through this period, it overcame the limitations mentioned at Level 1 and evolved with new People Processes. Going by the pre-laid Process Areas under the PCMM, the Organisation Analysis has been done as under: Sl. No. 1. Maturity Level Process Area(s) Work Environment a) Work Environment & b) Performance Positive Aspects => Presence of a Workplace audit. => A Complaint status maintained - Raised v/s resolved. => Employee Welfare measure existed in small amounts & forms such as - Health check up, celebrations, token gift on Diwali etc. => New Joining Check List Template => Basic Resource Survey => Safety Procedures Audit => IT Security Audit Limitations => No time taken/invested to provide facilities such as vehicle (transport), dedicated workspace, id cards etc.
2.
Communication a) Interpersonal Skills & b) Performance
3.
Staffing a) Assignment & b) Qualified Staff
4.
Performance Management a) Performance & b) Assignment
5.
Training a) Skill & b) Assignment Compensation a) Compensation & b) Performance
6.
=> Admin Process Audit => A forum of Communication present called Staff Level Meeting (SLM) that meets fortnightly. => This is followed by a monthly meeting at Management level called as MLM. => Besides, Annual/Half yearly/Monthly Communication MIS Updates => Review of Communication Updates (offline/online) => Meetings Guidelines and Follow Up Report => Communication as a Skill input to Training Meetings. => Recruitment, MIS, Sourcing to Short-listing to Interview to Offer made Ratios were analyzed. => Best Source Analysis. => Offers made to Joining Ratio Joining to 6 months stay ratio. Transfer & Relocation status Exit Interview Analysis. Total employees eligible to no. of appraisals happened ratio (gives total organisation wide performance spread) Avg. Performance Base lining exercise. Skills Matrix creation review. Input to T&D Report. Training Plan Tracker Training Calendar MIS Training Man hours/days Development programs Dev. Plan Trackers. Salary pay out dates Report Salary pay out discrepancy Report Discrepancy Redressal Audit Compensation / Salary Break Up Report. Mid-term Compensation Review Report.
=> No system was found for taking Feedback from employees => No employee competency status review seems to have been carried out.
Lack of Periodic review of systems.
Need based v/s Planned Training programs were missing.
Internal / External Parity not checked; no benchmarking exercise found. Dissatisfaction among resources were due to Compensation % of Attrition was more on these grounds.
PCMM Level 3 – Defined (Competency Centricity): (IT (SD) Company – the situation as in the Year 2004-06) As the company advanced further, it overcame the limitations mentioned at Level 2 and evolved with further renewed People Processes & its Management. Going by the pre-laid Process Areas under the PCMM, the Organization analysis has been done as under: Sl. No. 1. Maturity Level Process Area(s) Participatory Culture a) Workforce Activities & Practices and b) Individual & Team Autonomy Positive Aspects Limitations
Enhanced Communication No responsibility/ activities to improve the flow of accountability were seen on information within the Individuals and groups that organization. participated in making commitments. Decisions made even at the lowest appropriate level of the organization (AUTHORITY DELEGATION).
2.
3.
Individuals and groups participate in decision-making processes that involve their work or commitments. Examples of mechanisms for maintaining ongoing communication with the individuals and groups includes: - management & staff council (MSC), – Staff meetings, – Frequent informal meetings and – Ongoing interactions with individuals and groups. Workgroup The organization follows a The organization’s performance Development/Planning documented policy in developing in meeting the objectives of its a) Workforce Activities and updating its strategic and strategic and near-term & b) Current & Future near-term workforce plans. workforce plans is not tracked Business Needs. to a reasonable extent. An organizational role(s) is assigned responsibility for Periodical reviews by executive coordinating strategic and near- management of the term workforce plans. organization’s strategic and workforce planning activities The organization develops could not be seen. succession plans for its key positions. Competency Based Workforce practices are Progress in performing Practices tailored to motivate individuals competency-based workforce
a) Core Competencies and groups to improve their activities not recorded. & knowledge and skills in the core b) Workforce Practices competencies of the Status of resolution for Organization. noncompliance issues compensation and statutory => Workforce activities are ones not documented. adjusted to support development in the core competencies of the organization. => Compensation and reward strategies are tailored to motivate growth in the core competencies of the organization. Example tools for aligning workforce practices with the Organization’s Core Competencies include: – Information bases on sources for recruiting, – Selection guides and aides, – Performance management forms and guides. Career Development Adequate resources and a) Core Competencies funding provided for & b) Personal Career implementing the planned career development activities. Examples of implementation support include: – Maintaining career development records, – Maintaining engineering graduated career paths, and – Maintaining listings of open positions.
4.
No formal guidance or training to Individuals responsible for career counseling activities, to perform their responsibilities well.
5.
A personal development plan is created and maintained for each individual. Competency The organization follows a No guidelines on how the Development documented policy for completeness and accuracy of a) Core Competencies developing the core this information will be audited. & b)Training & competencies required to Development perform its business processes. Examples of tools to support competency development include: – training and tutorial materials, – self-study guides,
6.
Knowledge & Skills Development a) Identified Core Competencies & Skills and b) Current & Future Business Needs
– training facilities, – on-the-job training aids and –descriptions of available training opportunities. => The organization follows a documented policy for analyzing its knowledge and skills requirements (including technical, managerial and administrative activities) are identified. => An organizational role(s) is assigned responsibility for coordinating knowledge and skills analysis activities across the organization.
=> All individuals performing knowledge and skills analysis are to be trained in relevant analysis methods and techniques.
PCMM Level 4 – Managed (Team & Organisational Centricity): (IT (SD) Company – the situation as in the Year 2006-07) As the company progressed further through the years, it became fully compliant with the major requirements on Workforce Management as under Level 3 and matured its processes & systems. Going by the pre-laid Process Areas under the PCMM, the Organization analysis has been done as under: Sl. No. 1. Maturity Level Process Positive Aspects Area(s) Participatory Culture a) Workforce Activities & Practices Limitations
Communication activities are In all these process areas, the further enhanced to improve Organization needs to ascertain the flow of information within the completeness and accuracy the organization. of its process & system b) Individual & Team improvement by way of a well Autonomy (All steps under the Defined defined audit procedure & that level on communication aspect, should take place periodically. has been further improvised by the Company). Workgroup The organization follows Development/Planning documented policies in all a) Workforce Activities aspects. and b) Current & The organization developed
2.
Future Business Needs. 3. Competency Based Practices a) Core Competencies & b) Workforce Practices.
succession plans for its key positions. Workforce practices are tailored to motivate individuals and groups to improve their knowledge and skills in the core competencies of the organization. Workforce activities are adjusted to greater degree to support development in the core competencies of the organization. Compensation and reward strategies are tailored to motivate growth in the core competencies of the organization.
4.
Career Development Adequate resources and a) Core Competencies funding are provided for implementing the planned career & b) Personal Career development activities. Examples of implementation support include: – Maintaining career development records, – Maintaining graduated career paths and – Maintaining listings of open positions. A personal development plan is created and maintained for each individual. Competency The organization continues to Development follow well documented policies a) Core Competencies for developing the core & b)Training & competencies required to Development perform its business processes. Knowledge & Development a) Identified Skills Enhanced and improved practices as mentioned under Core
5.
6.
Competencies & Skills Defined level, as above. and b) Current & Future Business Needs
PCMM Level 5 – Optimising (Team & Organisational Centricity): (IT (SD) Company – the situation as in the Year 2008 onwards) Year 2008 onwards the current Organization has made some major changes into its working style to accommodate more systematic & workforce oriented processes & practices & made continuous improvement & innovation(s). During this tenure (i.e., since 2008), the company not only overcame all shortcomings mentioned at level 4, but thoroughly followed the procedures laid for level 5. The Company had recently also conducted an internal audit of its people related systems & processes and it was observed that this IT Company is following almost 70% of the parameters laid under PCMM level 5. Recently, the company formally applied for PCMM certification with the concerned agency QAI & the external audit has been initiated too. The company thus aims to bring continuous improvement & attain maturity in its overall system to achieve 100% compliance as pre-defined for the optimizing level of PCMM. Going by the pre-laid Process Areas under the PCMM level 5, the present Organisation analysis has been done as under. Since the IT Company is currently functioning at PCMM level 5 parameters to a great extent, a detailed analysis has been done of this level: Process Areas (KPA’s) Personal Competency Development - Workforce Practices - Individual Work Processes Coaching - Workforce Practices - Workforce Experience
Continuous Workforce Innovation - Performance Results - Workforce Practices
I. Personal Competency Development Under this Key Process Area, the present IT Organisation has been analysed in terms of its professional & self development of its workforce i.e., the systems/programs developed by the company for continuously improving individual work processes. The Organization has established processes with an aim to support individual initiative in continuously improving personal work processes i.e., individuals to have the freedom to: ? define their work processes ? plan their work ? set measurable goals for improving their performance ? analyze their work processes ? identify opportunities for improvement ? identify the knowledge and skills needed to make these improvements ? improve their work processes and ? eliminate the causes of defects in their work. Thus, the Organization is making continuous efforts to support personal competency development & to recognize improvements in individual work processes. Processes Documented policy for continuously improving individuals’ personal competencies. Key Strengths 1. Personal competency development activities to serve the business objectives and stated values of the organization. 2. Individuals are encouraged to continuously improve the personal work processes involved in their work. 3. Individuals participating in personal competency development activities set measurable goals for continuous improvement of their individual work processes. 4. Support is provided for assisting individuals to continuously improve their competencies. 5. All individuals are able to participate on a voluntary basis in continuously improving their individual work processes. 1. Adequate resources and funding are provided for continuously improving individual work processes. 2. Experienced individuals who have expertise in individual work process improvement are available for assisting in activities for continuous competency development. 3. Tools for supporting activities for continuous improvements in individual work processes are made available. Examples of tools to support activities for continuous improvements in individual work processes include: – Data collection tools, – Statistical analysis packages, – Spreadsheets, – Databases and other repositories and – Reporting and communication tools. Opportunities for Improvement Those engaging in personal competency development activities must receive adequate training in techniques for continuously improving individual work processes.
Organizational role(s) is assigned responsibility for coordinating activities for personal competency development across the organization.
Measurements are made and used to determine the status of activities for personal competency development. The organization’s effectiveness in implementing activities for Personal competency development
4. The organization’s near-term workforce plan allocates resources for continuous personal competency development activities. There are periodic reviews in place that verify: 1. Personal competency development activities comply with the organization’s policies and stated values. 2. Noncompliance items are handled appropriately. 3. All actions related to personal competency development are periodically reviewed to ensure that they conform to documented policies. 1. Appropriateness of the activities for personal competency development. 2. Progress in performing the activities for personal competency development. 3. Results from reviews of the activities for personal competency development against the organization’s values and appropriate policies. 4. Status of resolution for noncompliance issues.
Organization’s Personal Competency Development Practice Examples (Activities) parallel to PCMM Maturity Level 5 (Optimizing):
Activity-1 Special assignment, project oversight & other stretch roles to interested workforces to accelerate their development.
Activity-2 Feed back forum: promoting aspects that worked well; elimination of behaviors that effected adversely.
Activity-3 Role model: superiors pitching in to do any kind of work when help is needed by their resources in order to promote team work.
Activity-4 New Process Introduction: new process & technology to the work group & asking their feedback on their approach to getting them to speed.
Activity-5 People & competency development: developing their experience and capabilities; for problem avoidance & other growth aspects.
The above activities are documented in the policy termed as Skill & Competency Development (SCD) Program.
II. Coaching Since the Company is into specialised software product development, providing expert assistance to enhance the performance of individuals and teams had been always a high priority of this Organisation. The process usually involves: ? selection of the appropriate training institutes, individual trainers/coaches ? analyzing data on personal or team performance ? providing guidance on methods for improving performance ? evaluating progress toward goals for improving performance ? training the trainers (TTT) in coaching skills and ? the coaching activities are evaluated to make necessary improvements. Processes Coaches are selected for their expertise and prepared for their responsibilities. Coaches work with individuals to improve their personal competency and performance. Coaches work with teams to improve their team-based competencies and performance. Coaches’ work is rewarded to motivate them. Key Strengths 1. External help from experts are sought 2. Established trainers within the organisation plays a vital role in coaching 3. Responsibilities on mentoring are done on a rotation basis to enhance the learning aspect & grooming new coaches. 4. All support is provided for assisting individuals to take up mentoring role & continuously improve their competencies. 1. Coaches work with individuals to improve their personal competency and performance. 2. The process is well defined & documented 3. Progress monitoring is well established. Opportunities for Improvement
1. Personal competency development activities are done with teams too. 2. Noncompliance items are handled appropriately. 3. All actions are periodically reviewed to ensure that they conform to documented policies. Coaches are recognized for successful coaching: Examples of recognition for successful coaches include: – Awards, – Public recognition in meetings or newsletters, – Privileges, – Financial considerations and – Acknowledgment for success of coaching related to performance or career objectives.
Organization’s Coaching Practice Examples (Activities) parallel to PCMM Maturity Level 5 (Optimizing):
Activity-1 Coaching Tool Box: It contains tools that help resources learn through hands on experience; observing; reading; discussion etc.
Activity-2 Weekly De-briefing: Staff members are required to de-brief their success & problems of the previous week in their job; thus everyone’s learning is expanded in the group.
Activity-3 Office Library: employees are required to share books/articles they have read; encourage using them & it is followed up to see what developmental on-the job changes has occurred.
Activity-4 Mentor Role Play: Staff members are, on rotation required to become a coach for someone in their team; to understand mentoring relationship & other aspects too.
The above activities are documented in the policy called as Staff Coaching Guidelines (SCG). II. Coaching Since the Company is into specialised software product development, providing expert assistance to enhance the performance of individuals and teams had been always a high priority of this Organisation. The process usually involves: ? selection of the appropriate training institutes, individual trainers/coaches ? analyzing data on personal or team performance ? providing guidance on methods for improving performance ? evaluating progress toward goals for improving performance ? training the trainers (TTT) in coaching skills and ? the coaching activities are evaluated to make necessary improvements. Processes Coaches are selected for their expertise and prepared for their responsibilities. Coaches work with individuals to improve their personal competency Key Strengths 1. External help from experts are sought 2. Established trainers within the organisation plays a vital role in coaching 3. Responsibilities on mentoring are done on a rotation basis to enhance the learning aspect & grooming new coaches. 4. All support is provided for assisting individuals to take up mentoring role & continuously improve their competencies. 1. Coaches work with individuals to improve their personal competency and performance. 2. The process is well defined & documented 3. Progress monitoring is well established. Opportunities for Improvement
and performance. Coaches work with teams to improve their team-based competencies and performance. Coaches’ work is rewarded to motivate them.
1. Personal competency development activities are done with teams too. 2. Noncompliance items are handled appropriately. 3. All actions are periodically reviewed to ensure that they conform to documented policies.
Coaches are recognized for successful coaching: Examples of recognition for successful coaches include: – Awards, – Public recognition in meetings or newsletters, – Privileges, – Financial considerations and – Acknowledgment for success of coaching related to performance or career objectives. Organization’s Coaching Practice Examples (Activities) parallel to PCMM Maturity Level 5 (Optimizing):
Activity-1 Coaching Tool Box: It contains tools that help resources learn through hands on experience; observing; reading; discussion etc.
Activity-2 Weekly De-briefing: Staff members are required to de-brief their success & problems of the previous week in their job; thus everyone’s learning is expanded in the group.
Activity-3 Office Library: employees are required to share books/articles they have read; encourage using them & it is followed up to see what developmental on-the job changes has occurred.
Activity-4 Mentor Role Play: Staff members are, on rotation required to become a coach for someone in their team; to understand mentoring relationship & other aspects too.
The above activities are documented in the policy called as Staff Coaching Guidelines (SCG).
III. Continuous Workforce Innovation Under this Key Process Area, the present IT Organisation’s activities have been identified as under: ? The company has constantly improved its workforce practices and technologies ? It has implemented the most promising systems throughout the organization. ? There is an established mechanism in place for monitoring improvements in workforce activities, identifying needs for new practices, evaluating innovative practices and technologies, conducting trials of new practices and technologies and implementing the most beneficial ones across the organization. ? Improved practices for recruitment, new selection techniques ? Improved ways to manage performance ? Improved and innovative technologies for communication ? Creative compensation schemes ? Introduced methods for developing knowledge and skills, alternative career choices and new ways of organizing and empowering the workforce. The effectiveness of these continuous improvements in the Organisation’s practices is evaluated from time to time, quantitatively and the results are kept transparent & communicated to the workforce. Processes Innovative workforce practices and technologies are evaluated to determine their effect on improving core competencies and performance. Key Strengths The company takes care that it provides its resources the best of work environment and latest technologies (software) besides the instructional design technology. Ways for better communication technology and have an open culture too; and provides subscriptions to on-line databases. Opportunities for Improvement Though the Organisation has innovative and continuous improvement plans & practices in place, however, also needs to have a program that encourages individuals and teams to propose improvements to workforce practices and activities (i.e., greater degree of INVOLVEMENT & INERTIA).
The Innovations have been incorporated into workforce related organization’s functions such as: workforce – Selection or training, practices and – Computer-aided training technology, activities are – Groupware and team coordination technologies, improved – Knowledge assessment methods continuously. – Performance enhancement methods Participation in Continuous workforce innovations across the organization improving the includes: organization’s - A committee reviewing recommendations submitted
workforce practices and activities is organizationwide.
by individuals or groups for improvements in workforce practices, - Specialists in each area working to improve practices in their area, - Workforce experts working independently or as a team with technologists to develop innovative workforce technologies in such areas as training or group work. Organization’s Workforce Innovation Practice Examples (Activities) parallel to PCMM Maturity Level 5 (Optimizing):
Activity-1 Career Exploration through Increased Counselling, New Processes: professional counsellors are hired by the company.
Activity-2 Individual Training Accounts: are maintained by the Organisation tracking the progress of employee training & innovation.
Activity-3 Expanded Training Opportunities: Company has tie up with NIIT, C-Dac & other technical institutes to provide expanded training to its resources.
Activity-4 Innovation Reward Program (Tangible Savings): If resources provide creative & practical ideas that lead to tangible savings & improved services within their team in the organisation, cash reward is extended to the team, payable in equal proportion to the team members, for innovative & creative idea generation.
The above activities are documented in the policy known as Learning Information System (LIS). SECTION-IV CMMi Practice Level: Since the company is in IT industry - Software Product Development, it is relevant to mention the CMMi level of the present company besides the analysis done on PCMM parameters. In case of Capability Maturity Model (CMMi), the present Organisation is functioning at level 4 (for some process areas) & is already operating at level 5 in another set of process. It is continually aiming to achieve CMMi level 5 for all its Process Areas - KPA’s. The auditing activities for certification are already undergoing in the Organisation.
The KPA’s at CMMi level 4 are the following:
? ? Product and Process Quality Software Quality Management, Quantitative Process Management.
?
? ?
The KPA’s at CMMi level 5 are the following; ?
Process Change Management, Technology Change Management, Defect Prevention.
The company is constantly taking care of the following aspects with an aim to get high level accreditation of CMMi for its entire process activities; these include: ? ? ? ? addressing software engineering and other disciplines that have an effect on software development and maintenance providing integrated process improvement reference models building broad community consensus & harmonizing with related standards and enabling efficient improvement across disciplines relevant to software application development and maintenance
Measurable Achievements: The present IT Organization, has really done well over the years, by improving its process & people activities through the years & the position at which it stands today it has earned real benefits, as briefly illustrated in these four sub-sections: Process Efficiency: Under this element, it has been monitored and analyzed how the Organization performed with greater efficiency; improved its operation and supply chains. It looked at comparative performance metrics in three key areas: Internal operational processes; External developments and trends and Competitive benchmarking.
Process Efficiency
Drop in appraisal time from 1 month to 1 week Indent-to-join cycle time drop from 60 to 40 days
“Structured Knowledge Management” “Improved talent attraction” resource avg. stability raised from 3 to 7 years
Process Efficiency
Process Efficiency
33% drop in attrition
Delivery Optimization: Under this element, Service Delivery Optimization has yield Competitive Advantage to this Organisation and the IT service management of the Company provides for the effective and efficient delivery of technology services in support of changing business needs. • Drop in effort variation by 31% •“Helped leverage investments in Software-CMM and Personal Software Process” •Drop in rework due to higher competency (21% co-relation)
Delivery Optimization
Delivery
Optimization
Delivery Optimization
•With 110% increase in training time, improvement in review efficiency by 100% and drop in rework by 45%
Employee Benefits: All forms of consideration given by a company to the employees for services rendered by the employees have been taken into account, while assessing the employee benefits aspects and the comparative growth related to it: Employee Benefits
• 60% increase in ESAT (employee satisfaction)
Employee Benefits
• 45% in people exceeding performance expectations due to competency-based recruitment
Employee Benefits
• “Higher employee morale” • "Created a sense of real empowerment"
Business Impact: Business impact, being an important and essential component of an organization's business continuance plan, its analysis has also been done to track the overall progress made by the Company.
Business Impact
12% increase in customer feedback scores
Business Impact
“Enabled scalability”
Business Impact
“Increased competitive edge"
PROJECT SUMMARIZATION The Analyses of the present IT Organisation’s operations & functioning with that of People Capability Maturity Model (People CMM) has thoroughly helped to understand critical people issues, processes of managing and developing the workforces. The People CMM indeed helps organizations characterize the maturity of their workforce practices, establish a program of continuous workforce development, set priorities for improvement actions, integrate workforce development with process improvement and thus establish a culture of excellence. The five maturity levels helps establish successive foundations for continuously improving individual competencies, developing effective teams, motivating improved performance and shaping the workforce the organization needs to accomplish its future business plans. Each maturity level is a well-defined evolutionary plateau that institutionalizes new capabilities for developing the organization’s workforce. It is beyond any doubt that by following the maturity framework, an organization can avoid introducing workforce practices that its employees are unprepared to implement effectively. The CMMi: In this project, a small portion on the CMMi has been also covered. As the current Organisation being into IT, it was considered valuable to mention this model (besides PCMM), so as to highlight major IT issues/concepts. This is also a very useful tool for obtaining project funding for key initiatives such as enterprise data asset management and data repository development. In fact, many Corporations have IT goals centred on the CMMi levels. The model also gives companies a mechanism to compare themselves with other companies within their industry/domain (benchmark). A Final Word Both PCMM & CMMi has become a powerful tool for promoting innovation and realizing the various intricacies of people & business process. The value of these processes relates directly to the effectiveness of an organization to deal with today’s competitive situations and create their future. Information Audit, Benchmark and Maturity measure plays a vital role for an organization. The basic purpose of this project study has been, therefore, achieved by being able to do the Information audits of the present IT Company and thus developing the Knowledge and Information Gap(s) in the Organization. And PCMM Maturity Measure Model has helped in carrying out such an Elaborative & Systematic Analysis.
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doc_446052606.pdf
This project work is a submitted for partial fulfillment of my Fellowship from AHRB / CAMI on Certified Organization Developement Analyst
Software Development Company
Project Report Certified Organization Development & Analyst
CODA
By Puli. Srinivas Rao
12
Project Report On Certified Organization Development Analyst
This document was created on 1st July 2012 as part of my project work, contains Assignments and it is prepared and submitted for the purpose of partial fulfillment for Fellowship from ASIAN HR BOARD – AHRB / CAMI – USA. During the month of July 2012. This template is a draft document that has been as a working template for an IT Organization Company based in Hyderabad. Submitted by Puli. Srinivas Rao
AHRBHYD0211010
Acknowledgement
Its great pleasure to have worked on a Project work on CODA for An IT organization as part of my AHRB – Fellowship Program, Certified Organization Development & Analyst – CODA. This project work has been carefully carried out taking the courseware, workshop conducted by experts, on the job work experience of the aspirant & books referred which were recommended in the courseware – CODA. I would like to express my sincere thanks to the entire team of AHRB, CAMI & MEC for conducting such a value based program & designed a well structured, informative courseware to all participants. I take this opportunity to express my profound gratitude and respect to my Faculty Mr. Ronald Raj, He introduced me to this topic of Organization Development & Analyst, which has created lot of interest, his support and guidance has inspired me to put in the right efforts for this assignment. Thank you Srinivas Rao Puli. CODA - AHRB. (Fellow Aspirant)
S. No 1 2 3 4 5 6 7 8 Introduction
Table of Contents Acknowledgement
History of Organization Development Organization Development – An overview Benefits of Organization Development Process of Organization Development Assignment Conclusion
Introduction
Organizational development is the application of behavioral science principals to improve the functioning of organizations. Organizational development is a strategic, proactive approach to the internal management of an organization. It is concerned with deep elements of culture and values and with helping people and organizations to achieve positive growth through planned and managed change. Hand in hand with the broad discipline of Human Resources, the practice of Organization Development (OD) has emerged over the past several decades and has been instrumental in the successful transformation of countless organizations worldwide. As a subset of Industrial and Organizational Psychology, OD has been defined by many. Here is a popular definition from Warner Burke, a pioneer theorist and practitioner in the field: Organization Development, commonly referred to as "OD," has been explained as a general consideration of how work is done and what the people who carry out the work believe and feel about their efficiency and effectiveness. The emphasis is on "development," which means that people's capability in creating their own improvement, learning and development is enhanced. The ability to change is now a minimum success requirement for the modern organization. Particularly in the digital world, companies need flexible, adaptive cultures. In order to remain aligned with their strategic environment, they need to be learning organizations with the ability to change embedded within them. And they need strong, strategic leadership.
____________________________________________________________ Organization Development Organizational development is an ongoing, systematic process to implement effective change in an organization. Organizational development is known as both a field of applied behavioral science focused on understanding and managing organizational change and as a field of scientific study and inquiry. It is interdisciplinary in nature and draws on sociology, psychology, and theories of motivation, learning, and personality. History of Organization Development In the late 1960s organizational development was implemented in organizations via consultants, but was relatively unknown as a theory of practice and had no common definition among its practitioners. Richard Beckhard, an authority on organizational development and change management, defined organizational development as "an effort, planned, organizationwide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization's processes, using behavioral-science knowledge" (Beckhard 1969). Throughout the 1970s and 1980s organizational development became a more established field with courses and programs being offered in business, education, and administration curricula. In the 1990s and 2000s organizational development continued to grow and evolve and its influences could be seen in theories and strategies such as total quality management (TQM), team building, job enrichment, and reengineering.
Rationale & Implementation Organizational development takes into consideration how the organization and its constituents or employees function together. Does the organization meet the needs of its employees? Do the employees work effectively to make the organization a success? How can the symbiotic relationship between employee satisfaction and organizational success be optimized? Organizational development places emphasis on the human factors and data inherent in the organization-employee relationship. Organizational development strategies can be used “to help employees become more committed and more adaptable, which ultimately improves the organization as a whole”. The organizational development process is initiated when there is a need, gap, or dissatisfaction within the organization, either at the upper management level or within the employee body. Ideally, the process involves the organization in its entirety, with evidenced support from upper management and engagement in the effort by all members from each level of the organization. To launch the process, consultants with experience in organizational development and change management are often utilized. These consultants may be internal to the company or external, with the cautionary understanding that internal consultants might be too entrenched in the existing company environment to effectively coordinate and enforce the action plans and solutions required for successful change. Data analysis through task forces, interviews, and questionnaires can illuminate likely causes for disconnects throughout an organization. These gaps can then be analyzed, an action plan formed, and solutions employed. This is by no means a linear process, nor is it a brief one. Feedback from all constituents should be elicited throughout the process and used to make adjustments to the action plan as necessary. Constant monitoring during the entire implementation effort is important for its success and acceptance.
The Future of Organizational Development There are contradictory opinions about the status and future prospects of organizational development. Is it a theory whose time has come and gone? Does its basis in behavioral science, a "soft" science, make it unappealing? What are the challenges for the future? An article by Bunker, Alban, and Lewicki proposes six areas that could revitalize the field of organizational development in the future: virtual teams, conflict resolution, work group effectiveness, social network analysis, trust, and intractable conflict. These authors suggest that focusing on these areas will help bridge the gap between research theory (i.e., academics) and practice (i.e., consultants). Getting these two groups to communicate with each other will benefit both groups and promote organizational development efforts. In a survey conducted by Church, Waclawski, and Berr, twenty individuals involved in the study and practice of organizational development were questioned about their perspectives and predictions on the future of the field. The most in-demand services, according to those polled, are: 1. Executive coaching and development 2. Team building and team effectiveness 3. Facilitating strategic organizational change 4. Systemic integration 5. Diversity and multiculturalism. They list the daily challenges in the field as the need for speed, resistance to change, interpersonal skills and awareness, and differentiating organizational development, which refers to the variety of definitions of organizational development among practitioners and how this impacts consultants, clients, and the clients' needs. The opinions on the future direction of the field vary among its practitioners. Nevertheless, the continuing interest in and value of optimizing an organization's needs and goals with the needs, wants, and personal satisfaction of its employees indicate that organizational development will continue to be relevant to and vital for organizational reform in the future, either in its present form or through evolution into other theories and practices.
An Overview - Organization Development
What is Organization Development? Organization Development (OD) is the process of improving organizations. The process is carefully planned and implemented to benefit the organization, its employees and its stakeholders. The client organization may be an entire company, public agency, non-profit organization, volunteer group - or a smaller part of a larger organization. The change process supports improvement of the organization or group as a whole. The client and consultant work together to gather data, define issues and determine a suitable course of action. The organization is assessed to create an understanding of the current situation and to identify opportunities for change that will meet business objectives. OD differs from traditional consulting because client involvement is encouraged throughout the entire process. The ways in which people communicate and work together are addressed concurrently with technical or procedural issues that need resolution.
Why is Organization Development Important
Profitability, productivity, morale and quality of work life are of concern to most organizations because they impact achievement of organization goals. There is an increasing trend to maximize an organization's investment in its employees. Jobs that previously required physical dexterity now require more mental effort. Organizations need to "work smarter" and apply creative ideas. The work force has also changed. Employees expect more from a day's work than simply a day's pay. They want challenge, recognition, a sense of accomplishment, worthwhile tasks and meaningful relationships with their managers and co-workers. When these needs are not met, performance declines. Today's customers demand continually improving quality, rapid product or service delivery; fast turn-around time on changes, competitive pricing and other features that are best achieved in complex environments by innovative organizational practices. The effective organization must be able to meet today's and tomorrow's challenges. Adaptability and responsiveness are essential to survive and thrive.
What do Organization Development Consultants Do
OD consultants custom tailor established social science theory and methods to organizations seeking to improve profitability, productivity, morale and/or quality of work life. Examples of activities which are facilitated by OD consultants are: o o o o o o o o o o o o o o o o o o Teambuilding Goal Setting Group Facilitation Creative Problem solving Strategic Planning Leadership Development Management Development Career Management Conflict Resolution Developmental Education Interpersonal Communication Human Resources Management Managing Workforce Diversity Organization Restructuring High Involvement Work Teams Sociotechnical Systems Design Technical Training Total Quality Management
Often described as "change agents," OD consultants come from varied backgrounds with experience and training in organization development, organization behavior, psychology, education, management and/or human resources. Many have advanced degrees and most have experience in a variety of organizational settings. Company cultures are like country cultures. Never try to change one. Try, instead, to work with what you've got.”- Peter Drucker
Benefits of Organization Development ? Change throughout the organization ? Greater motivation ? Higher Job Satisfaction ? Reduce absenteeism ? Increased productivity ? Low turnover ? Better quality of work ? Improved Teamwork ? Better resolution of conflict ? Commitment to objectives ? Increased willingness to change ? Creation of learning individuals and groups
Never doubt that a small group of thoughtful, committed people can change the world, indeed it sis the only that ever has!" - Margaret Meade
Process of Organization Development
The process of Organizational Development comprises of follows steps and they are:-
1. Initial Diagnosis 2. Data Collection 3. Data Feedback 4. Selection of Interventions 5. Implementation of interventions 6. Action planning and problem solving 7. Team Building 8. Inter-Group Development 9. Evaluation and Follow up
1. Initial Diagnosis: The initial diagnosis refers to finding the inadequacies within the organization that can be corrected by OD activities then it is necessary to find out the professionally competent persons within organization to plan and execute OD activities. The outside consultants can be also employed to help in diagnosing the problems and diagnosing OD activities. The consultants adopt various methods and that primarily includes interviews, questionnaires, direct observation, analysis of documents and reports for diagnosing the problem.
2. Data Collection: The survey method is employed to collect the data for determining organizational climate. It also helps in identifying the behavioral problems that are rising in the organization. 3. Data Feedback: The collected data are analyzed and reviewed by various work groups that are formed for this purpose. It is done in order to intervene in the areas of disagreement or confrontation of ideas or opinions. 4) Selection of Interventions: The interventions can be described as the planned activities that are introduced into the system to achieve desired changes and improvements. The suitable interventions are to be selected and designed at this stage.
5) Implementation of Interventions: The selected intervention should be implemented progressively as the process is not a one shot, quick cure for organizational problems. Consequently, it achieves real and lasting change in the attitudes and behaviour of employees.
6) Action Planning and Problem Solving: To solve the specific and identified problems by using the collected data, groups prepare recommendations and specific action planning.
7) Team Building: The consultants explain the advantages of the teams in OD process and encourage the employees throughout the process to form into groups and teams.
8) Inter-group Development: After the formation of groups/teams, the consultants encourage the inter-group meetings, interaction etc. 9) Evaluation and follow up: The organization should evaluate the OD programmes and should find out their utility, and develop the programmes further for correcting the deviations. The consultants make great significance to the organization in this respect. The entire steps in the OD processes should be followed by the organization in order to derive full range of OD benefits.
A Brief Understanding Of the History of Business Excellence Models Business Excellence is “excellence” in strategies, business practices, and stakeholder-related performance results that have been validated by assessments using proven business excellence models. Business excellence models guide organizations towards sustainable world-class business results, and are based on business principles that have been proven to work. These business principles—or core concepts—are similar for most business excellence models. The Stage The first business excellence models were developed in the mid-1980s and came about as a result of the quality movement in the West, which in turn was a response to the advancements in quality and competitiveness in Japan. The models themselves began as quality award or Total Quality Management (TQM) models, as TQM had emerged in the mid-1980s as the new philosophy and panacea for businesses. Over time, the term “Business Excellence” started to replace the terms “Quality” and “TQM”, partly as a result of the considerable confusion as to the meaning of TQM, since all types of business improvement programs were being called TQM1. Today, many countries view business excellence models as a key mechanism for improving the performance of organizations, as well as national competitiveness. Business Excellence Models Several business excellence models are in use today. The models are designed to guide and help organizations to improve their performance and achieve world-class performance levels. In addition, national bodies use business excellence models as a basis for award programs, which serve to identify and recognize role model organizations. However, for most national bodies, the awards themselves are secondary in importance to their desire to achieve widespread take up of the business excellence concepts by organizations, since it is this that leads to improved national economic performance. For example, in 2001, Link and Scott made a conservative estimate of the net social benefits associated with the Malcolm Baldrige National Quality Award program. They found that the ratio of economy-wide benefits to US federal government costs in supporting the program exceeded 207:1. The vast majority of organizations use business excellence self-assessments to identify opportunities for improvement—as well as their areas of strength—and put in place actions to move forward. When used as a basis for an organization’s improvement culture, the business excellence model criteria broadly channel and encourage the use of best practices into areas where their effect will be most beneficial to performance. The best-known business excellence models are the Baldrige Criteria for Performance Excellence and the EFQM Excellence Model. These models are described below, as is the Deming Prize. The Deming Prize was created in 1951 and played an instrumental role in Japan’s quality movement and economic success. It is viewed by many as the precursor to the current business excellence models and awards, and still operates today.
The Baldrige Criteria for Performance Excellence The Malcolm Baldrige National Quality Award was created in the USA in 1987. Its key aim was to improve competitiveness in US companies, particularly by promoting the development of quality in response to strong competition from Japanese companies. The award model and its criteria are based on the following core values and concepts: • Visionary leadership • Customer-driven excellence • Organizational and personal learning Valuing employees and partners • Agility • Focus on the future • Managing for innovation • Management by fact • Social responsibility • Focus on results and creating value, and • Systems perspective.
These values and concepts underpin the model’s seven criteria, which are shown in Figure 1. Table 1 provides a comparison of the criteria used in the Baldrige and EFQM models.
The EFQM Excellence Model Joe Goasdoué , chief executive of the British Quality Foundation, wrote that the EFQM Excellence model is based on the premise that the fundamentals of running a successful organization in the public, private or voluntary sector are the same, irrespective of type or size of organization to which they are applied. The model is based on the following core principles: • Results orientation • Customer focus • Leadership and constancy of purpose • Management by processes and facts • People development and involvement • Continuous learning • Innovation and improvement • Partnership development, and • Corporate social responsibility.
The nine criteria that emerge from these are represented in Figure 2. These criteria are divided into two categories: enablers and results. The first five criteria are the enablers and represent the activities of the organization, while the results represent the level of performance achieved.
Comparison between Baldrige & EFQM: BALDRIGE CRITERIA FOR PERFORMANCE EXCELLENCE EFQM EXCELLENCE MODEL CRITERIA develop and
Leadership: How do an organization’s senior Leadership: Excellent Leaders leaders guide and sustain that facilitate the achievement of an Organization? The criterion also examines the organization’s governance structures and looks at how it addresses its ethical, legal and community responsibilities.
Strategic Planning: How does an organization develop strategic objectives and action plans? The criterion examines how they are deployed and changed (when circumstances dictate) and looks at how progress is measured. People: Excellent organizations manage, develop Customer and Market Focus: How does an and release the full potential of their people at an organization determine the requirements, needs, individual, team-based and organizational level. expectations and preferences of its customers and They promote fairness and equality and involve the market? This criterion examines how the and empower their people. They care for, organization builds relationships with the communicate, reward and recognize, in a way that customers and determines the key factors that lead motivates staff and builds commitment to using to customer acquisition, satisfaction, loyalty and their skills and knowledge for the benefit of the
Organization’s mission and vision. They develop organizational values and systems required for sustainable success, and implement these via their actions and behaviors. During periods of change they retain a constancy of purpose. Where required, such leaders are able to change direction of the organization’s direction and inspire others to follow
retention, as well as to business expansion and organization sustainability. Policy and Strategy: Excellent organizations Measurement, Analysis, and Knowledge implement their mission and vision by developing Management: How does an organization select, a stakeholder-focused strategy that takes into gather, analyze, manage and improve its data, account the market and sector in which it operates. information and knowledge assets, and how does it Policies, plans, objectives and processes are manage its information technology? This criterion developed and deployed to deliver strategy. also looks at how an organization reviews—and Partnerships and Resources: Excellent uses reviews—to improve its performance. organizations plan to manage external Workforce Focus: How does an organization engage, manage and develop the workforce to utilize its full potential in alignment with its overall mission, strategy and action plans? This criterion also examines the ability to assess workforce capability and capacity needs, as well as to build a workforce environment that is conducive to high performance. partnerships, suppliers and internal resources in order to support policy and strategy and the effective operation of processes. During planning (and whilst managing partnerships and resources), they balance the current and future needs of the organization, the community, and the environment.
Processes: Excellent organizations design, manage Process Management: How does an organization and improve processes in order to fully satisfy— determine its core competencies and work systems and generate increasing value for—their customers to deliver customer value and achieve and other stakeholders. organizational success and sustainability? This People Results: Excellent organizations criterion also examines emergency preparedness. comprehensively measure and achieve outstanding Results: This criterion examines an organization’s results with respect to their people. performance and Customer Results: Excellent organizations Improvement in all key areas: product and service outcomes, customer-focused outcomes, financial and market outcomes, workforce-focused outcomes, process effectiveness outcomes and leadership outcomes. Performance levels are examined in relation to those of competitors and other organizations that provide similar products and services.
Comprehensively measure and achieve outstanding results with respect to their customers. Society Results: Excellent organizations comprehensively measure and achieve outstanding results with respect to society. Key Performance Results: Excellent organizations comprehensively measure and achieve outstanding results with respect to the key element of their policy and strategy.
The Deming Prize :In July 1950, the Union of Japanese Scientists and Engineers (JUSE) invited Dr. W. E. Deming (1900 - 1993), one of the foremost experts of quality control in the United States, to deliver a number of courses on quality control and, in particular, statistical quality control. The late Dr. Deming’s teachings had an impact on the Japanese quality movement and,
consequently, the Deming Prize was established in his honor in 1951. The prize has two categories: • The Deming Prize for Individuals: An annual award is given to individuals that have made outstanding contributions to the study of TQM or statistical methods used for TQM, or to individuals that have made outstanding contributions in the dissemination of TQM; • The Deming Application Prize: An annual award is presented to an organization that has achieved distinctive performance improvements through the application of TQM. The prize is open to organizations in all sectors - public or private, large or small, or domestic or overseas. Furthermore, a division of a company that manages its business autonomously may apply for the prize separately from the company. Unlike the previous two models, the Deming Prize does not specify set criteria for examination during the award process, and therefore is not used for self-assessment. The applicant organization is expected to show an understanding of its current situation, establish its own themes and objectives, and improve and transform itself company-wide. The award process examines not only the current results that have been achieved, but also the effectiveness that is expected in the future. The examiners assess whether the themes established by the organization were commensurate to its situation, whether its activities were suitable to its circumstances, and whether or not its activities are likely to lead it to achieving its future objectives. The Prize Committee views the examination process as an opportunity for “mutualdevelopment” rather than “examination.” In recent years in Japan, the Japan Quality Award has become more popular than the Deming Prize. The Japan Quality Award was established in 1995 and is based on the Baldrige Criteria for Performance Excellence. Why Baldrige? Baldrige has holistic approach for performance excellence. This accelerates improvement effort, energize employees. This not only helps in gaining an overall perspective of business but also helps to remain focused on results and provides a strong learning tool through its feedback process.
PROJECT OBJECTIVE “Diagnosis of the Current Organization using Malcolm Baldrige Excellence Model” The primary objective of diagnosing the Organisation using the Malcolm Baldrige Excellence Model is to assess the performance of the Organization and to create a foundation for the way forward towards continuous improvement of the Organization performance. The project study has been undertaken with following objective: 1. To facilitate communication and sharing of best practices information among all levels. 2. To help improve performance practices, capabilities and results 3. To serve as a working tool for understanding and improving performance and for guiding planning and opportunities for learning i.e., - a systems approach to organization-wide goal alignment and - a goal-based means to diagnose the effectiveness of the organization and to devise an improvement plan from the diagnosis. The framework to support this project are in line with the Baldrige Model as the Model provides a systematic approach for continuous improvement in the areas which are critical for attaining better results, therefore, the framework support the organization in use of an aligned approach towards organizational performance management. Baldrige Criteria for Performance Excellence Framework – A Systems Perspective To begin with the the diagnosis the Baldrige Model framework has been placed hereunder as the same has been preferred to be used as the basic criterion for the current organizational diagnosis.
SECTION II Performance excellence — Scoring Pattern P. Preface: Organizational Profile P.1 Organizational Description P.2 Organizational Scan P.3 Porters 5 Force Model CATEGORIES AND ITEMS VALUES 1. Leadership 1.1 Senior Leadership 1.2 Governance and Societal Responsibilities 2. Strategic Planning 2.1 Strategy Development 2.2 Strategy Deployment 3. Customer Focus 3.1 Customer Engagement 3.2 Voice of the Customer 4. Measurement, Analysis and Knowledge Management 4.1 Measurement, Analysis, and Improvement of Organizational Performance 4.2 Mgmnt of Information, Knowledge, and Information Technology 5. Workforce Focus 5.1 Workforce Engagement 5.2 Workforce Environment 6. Process Management 6.1 Work Systems 6.2 Work Processes 7. Results 7.1 Product Outcomes 7.2 Customer-Focused Outcomes 7.3 Financial and Market Outcomes 7.4 Workforce-Focused Outcomes 7.5 Process Effectiveness Outcomes 7.6 Leadership Outcomes TOTAL POINTS 120 70 50 85 40 45 85 40 45 90 45 45 85 45 40 85 35 50 450 100 70 70 70 70 70 1,000 POINT
Assignment
First Stage Company which was taken for assignment IT Product Development.
Second Stage
Business Objective & Understanding Customers Need.
Third Stage
IT Product Development Company
Fourth Stage
Applying Malcolm Balridge Perspective to the Organization.
Fifth Stage
Applying PCMM Perspective to the Organization.
Sixth Stage
Conclusion
About IT Product Development Organisation.
IT (Software Industry): The Company is into Software Product Development and is a 100% Export Oriented Unit (EOU) specializing in Software Development using latest technologies in Java, Dot Net, Oracle; providing service to clients in Infrastructure/Technology/Banking/Financial Domain, Globally. Its main base is at Singapore; it has clients all over European sector and also at Asia Pacific (APAC) & Middle East (ME). It has in its independent operations in India, with the development centre based out of Hyderabad, Andhra Pradesh. The Parent Company at Singapore is in existence since last 13 years and its Indian Company is operational since last 12 yrs. Core Functional Group: The most Important / Core functional group of the company is the Technology (Software Development SD) Group, which comprises 80% of the total staff strength of the Organization. Company Strategy: The company follows a “Build Strategy” concept whereby it emphasizes more on Training, Motivation & Retention of its employees; in creating Customer Value, in Building Sustainable Competitive Advantage and in Developing Sustainable Growth Strategies. SECTION - II Analysis of the Current Organization using PCMM: The present organization analysis in this part of the project assignment has been done based on the parameters laid under the People Capability Maturity Model (PCMM) i.e., how the organisation has evolved over a period of years since its inception, with particular reference to the functioning of its Independent Company Operating from India. The IT Company since its operation had been constantly using methodologies to develop and refine the Organization's Software Development (SD) Process. In true sense, it had been following an evolutionary path of increasingly organized and adopting systematically more mature processes, as in the PCMM model. From time to time, the present IT (SD) Company had been addressing all its People as well as Software Engineering issues in a continuous & planned manner so as to advance its workforce processes & development methodologies. The analysis of the current IT (SD) Company has, therefore, been presented hereunder based on the PCMM's Five Maturity Levels Processes: Phase 1 of the IT (SD) Company
This has been related with PCMM’s 1st degree i.e., the Initial Level ? When the Indian Operations was set up independently & it started its operations way back in 2001, the people processes were quite disorganized. ? The groups of employees were divided by job functions. ? Each person shared related information within the groups. ? A little bit of success the Organization had in those early stages were depended on individual efforts and were not considered to be repeatable, because processes were not sufficiently defined and documented to allow them to be replicated. Phase II of the IT (SD) Company This has been related with PCMM’s 2nd degree i.e., the Repeatable Level ? As the IT firm progressed through the years, it was observed from the company history that project management techniques were established and some of the successes could be repeated (please note, not all of them), because the most basic requisite processes to some extent had been also defined and documented. ? It was also noticed that resources were departmental-bound. ? The record also showed the organization felt the need to link resources internally. Some important databases were found shared between departments or groups that were on working projects. ? However, no one seemed to be accountable or took care to update or validate those documents. ? Some redundancies and obsolete information existed; that could have lead to costly mistakes too. Phase III of the IT (SD) Company This has been related with PCMM’s 3rd degree i.e., the Defined Level ? Subsequently, the Organization developed its own standard processes through greater attention to documentation, standardization and integration. ? The Management then seemed to have felt the need to integrate partners and customers with their services or products. ? Inputs from them and also employees were seen to be aligned, updated and validated in the process(es). ? As a result a structured system was established, with an increase of productivity and effectiveness amongst employees.
Phase IV of the IT (SD) Company This has been related with PCMM’s 4th degree i.e., the Managed Level ? By this stage, the Organization attained more maturity as it was noticed that the current IT Company had started monitoring and controlling its own processes through data collection and analysis. ? Some client’s accreditations on this aspect could also be seen in the company records. ? The company also had well planned strategies to expand its business domain to untapped sectors. ? Further, with an ultimate pre-defined objective to generate more revenues for the company, communities of practices had been actively involved in seeking ways to improve business processes, thus offering a world class customer service; with everyone in the company being independent and proactive to get the job done, with minimum time. Phase V of the IT (SD) Company This has been related with PCMM’s 5th degree i.e., the Optimizing Level ? The years that followed, processes are now being constantly improved by the company through monitoring feedback from current activities and introducing innovative practices to better serve the organization's specific needs. ? In the present stage the company had already well expanded to other untapped business areas/sectors in the Middle East & some more parts in Asia-Pacific region. ? And, in all sense it can be said that today this IT Company has truly matured in its operations and is a tough competitor to others operating in similar domain. Note: This is the most desired phase for the organization, when the expertise of managing people & knowledge is seen converted into monetary revenues and advices sought from experts to emulate the exemplary success. The company evolved to understand that success and maturity are dependent on a broad set of capabilities that cross processes, infrastructure and people. It also felt the need for organizational intent and support in the form of top-down communications, funding, governance and cultural change. Presented below (in gist), is the current IT Organization’s Growth & Progress as has been tracked since the inception year until now:
Year ‘2001
Progressive Growth of the IT (SD) Company - Year of inception - No planned activities for people management - Workforce practices applied without analysis of impact. - Knowledge collection and creation relied on a personal level.
Parallel to PCMM Level 1. Initial
2002-03
2004-06
2007-09
2010onwards
- Had very simple activities and people management planning. - Users were facilitated to reuse the information. - Managers started taking responsibility of managing & developing the workforce. - Strategy and plans were in place for people & knowledge management. - Had constructed a uniform passage for process sharing management. - Had developed workforce competencies & workgroups & noticeable alignment with business strategies. - Constructed effective system to collect, reuse and communicate information. - Empowered & integrated workforce competencies, managed quantitatively. - Developed maturity & capability to use people & process management for strengthening the organization and create competitiveness. - Showing continuous improvement & innovation(s).
2. Repeatable
3. Defined
4. Managed
5. Optimizing
SECTION-III Stage-wise Detailed Analysis of the Organization vis-à-vis PCMM:
Part A: Functional Layout Before getting into specific analysis of each level of the PCMM with respect to the current IT company undertaken for this project study, it is significant to understand the company’s basic functional divisions, broadly classified as under: Software Development Group - SDG Web Technology Group – WTG Quality Control – QACs Marketing Group – MTG System Networking Information Group – SNIG Services Group – HR, Admin., Finance
IT (SOFTWARE) INDUSTRY (Functional Units)
Technology Software Development Group (SDG) ? Core Functional Unit ? 80% staff strength
OTHERS
WEB TECHNOLOGY GROUP (WTG)
QUALITY CONTROL (QAC)
MARKETING GROUP (MTG)
SYSTEM NETWORKING INFRASTRUCTURE GROUP (SNIG)
SERVICES SUPPORT GROUP (HR, Admin, Finance)
Part B: Stage-wise Analysis of the Company based on PCMM parameters
Organization Diagnosis using PCMM Model
PCMM Maturity Level 1 - The Initial Level (Inconsistent Management) (IT (SD) Company – during the preliminary years of inception 2000-01) Since Level 1 under PCMM is not decomposed into several key process areas, unlike other 4 Levels that indicate the areas an organization should focus on to improve its workforce capability, therefore, this is not taken up in detail except for what has been already mentioned in the previous sections corresponding to this Level. PCMM Level 2 – Repeatable (Performance Centricity): (IT (SD) Company – situation as in the Year 2002-03) As the company progressed through this period, it overcame the limitations mentioned at Level 1 and evolved with new People Processes. Going by the pre-laid Process Areas under the PCMM, the Organisation Analysis has been done as under: Sl. No. 1. Maturity Level Process Area(s) Work Environment a) Work Environment & b) Performance Positive Aspects => Presence of a Workplace audit. => A Complaint status maintained - Raised v/s resolved. => Employee Welfare measure existed in small amounts & forms such as - Health check up, celebrations, token gift on Diwali etc. => New Joining Check List Template => Basic Resource Survey => Safety Procedures Audit => IT Security Audit Limitations => No time taken/invested to provide facilities such as vehicle (transport), dedicated workspace, id cards etc.
2.
Communication a) Interpersonal Skills & b) Performance
3.
Staffing a) Assignment & b) Qualified Staff
4.
Performance Management a) Performance & b) Assignment
5.
Training a) Skill & b) Assignment Compensation a) Compensation & b) Performance
6.
=> Admin Process Audit => A forum of Communication present called Staff Level Meeting (SLM) that meets fortnightly. => This is followed by a monthly meeting at Management level called as MLM. => Besides, Annual/Half yearly/Monthly Communication MIS Updates => Review of Communication Updates (offline/online) => Meetings Guidelines and Follow Up Report => Communication as a Skill input to Training Meetings. => Recruitment, MIS, Sourcing to Short-listing to Interview to Offer made Ratios were analyzed. => Best Source Analysis. => Offers made to Joining Ratio Joining to 6 months stay ratio. Transfer & Relocation status Exit Interview Analysis. Total employees eligible to no. of appraisals happened ratio (gives total organisation wide performance spread) Avg. Performance Base lining exercise. Skills Matrix creation review. Input to T&D Report. Training Plan Tracker Training Calendar MIS Training Man hours/days Development programs Dev. Plan Trackers. Salary pay out dates Report Salary pay out discrepancy Report Discrepancy Redressal Audit Compensation / Salary Break Up Report. Mid-term Compensation Review Report.
=> No system was found for taking Feedback from employees => No employee competency status review seems to have been carried out.
Lack of Periodic review of systems.
Need based v/s Planned Training programs were missing.
Internal / External Parity not checked; no benchmarking exercise found. Dissatisfaction among resources were due to Compensation % of Attrition was more on these grounds.
PCMM Level 3 – Defined (Competency Centricity): (IT (SD) Company – the situation as in the Year 2004-06) As the company advanced further, it overcame the limitations mentioned at Level 2 and evolved with further renewed People Processes & its Management. Going by the pre-laid Process Areas under the PCMM, the Organization analysis has been done as under: Sl. No. 1. Maturity Level Process Area(s) Participatory Culture a) Workforce Activities & Practices and b) Individual & Team Autonomy Positive Aspects Limitations
Enhanced Communication No responsibility/ activities to improve the flow of accountability were seen on information within the Individuals and groups that organization. participated in making commitments. Decisions made even at the lowest appropriate level of the organization (AUTHORITY DELEGATION).
2.
3.
Individuals and groups participate in decision-making processes that involve their work or commitments. Examples of mechanisms for maintaining ongoing communication with the individuals and groups includes: - management & staff council (MSC), – Staff meetings, – Frequent informal meetings and – Ongoing interactions with individuals and groups. Workgroup The organization follows a The organization’s performance Development/Planning documented policy in developing in meeting the objectives of its a) Workforce Activities and updating its strategic and strategic and near-term & b) Current & Future near-term workforce plans. workforce plans is not tracked Business Needs. to a reasonable extent. An organizational role(s) is assigned responsibility for Periodical reviews by executive coordinating strategic and near- management of the term workforce plans. organization’s strategic and workforce planning activities The organization develops could not be seen. succession plans for its key positions. Competency Based Workforce practices are Progress in performing Practices tailored to motivate individuals competency-based workforce
a) Core Competencies and groups to improve their activities not recorded. & knowledge and skills in the core b) Workforce Practices competencies of the Status of resolution for Organization. noncompliance issues compensation and statutory => Workforce activities are ones not documented. adjusted to support development in the core competencies of the organization. => Compensation and reward strategies are tailored to motivate growth in the core competencies of the organization. Example tools for aligning workforce practices with the Organization’s Core Competencies include: – Information bases on sources for recruiting, – Selection guides and aides, – Performance management forms and guides. Career Development Adequate resources and a) Core Competencies funding provided for & b) Personal Career implementing the planned career development activities. Examples of implementation support include: – Maintaining career development records, – Maintaining engineering graduated career paths, and – Maintaining listings of open positions.
4.
No formal guidance or training to Individuals responsible for career counseling activities, to perform their responsibilities well.
5.
A personal development plan is created and maintained for each individual. Competency The organization follows a No guidelines on how the Development documented policy for completeness and accuracy of a) Core Competencies developing the core this information will be audited. & b)Training & competencies required to Development perform its business processes. Examples of tools to support competency development include: – training and tutorial materials, – self-study guides,
6.
Knowledge & Skills Development a) Identified Core Competencies & Skills and b) Current & Future Business Needs
– training facilities, – on-the-job training aids and –descriptions of available training opportunities. => The organization follows a documented policy for analyzing its knowledge and skills requirements (including technical, managerial and administrative activities) are identified. => An organizational role(s) is assigned responsibility for coordinating knowledge and skills analysis activities across the organization.
=> All individuals performing knowledge and skills analysis are to be trained in relevant analysis methods and techniques.
PCMM Level 4 – Managed (Team & Organisational Centricity): (IT (SD) Company – the situation as in the Year 2006-07) As the company progressed further through the years, it became fully compliant with the major requirements on Workforce Management as under Level 3 and matured its processes & systems. Going by the pre-laid Process Areas under the PCMM, the Organization analysis has been done as under: Sl. No. 1. Maturity Level Process Positive Aspects Area(s) Participatory Culture a) Workforce Activities & Practices Limitations
Communication activities are In all these process areas, the further enhanced to improve Organization needs to ascertain the flow of information within the completeness and accuracy the organization. of its process & system b) Individual & Team improvement by way of a well Autonomy (All steps under the Defined defined audit procedure & that level on communication aspect, should take place periodically. has been further improvised by the Company). Workgroup The organization follows Development/Planning documented policies in all a) Workforce Activities aspects. and b) Current & The organization developed
2.
Future Business Needs. 3. Competency Based Practices a) Core Competencies & b) Workforce Practices.
succession plans for its key positions. Workforce practices are tailored to motivate individuals and groups to improve their knowledge and skills in the core competencies of the organization. Workforce activities are adjusted to greater degree to support development in the core competencies of the organization. Compensation and reward strategies are tailored to motivate growth in the core competencies of the organization.
4.
Career Development Adequate resources and a) Core Competencies funding are provided for implementing the planned career & b) Personal Career development activities. Examples of implementation support include: – Maintaining career development records, – Maintaining graduated career paths and – Maintaining listings of open positions. A personal development plan is created and maintained for each individual. Competency The organization continues to Development follow well documented policies a) Core Competencies for developing the core & b)Training & competencies required to Development perform its business processes. Knowledge & Development a) Identified Skills Enhanced and improved practices as mentioned under Core
5.
6.
Competencies & Skills Defined level, as above. and b) Current & Future Business Needs
PCMM Level 5 – Optimising (Team & Organisational Centricity): (IT (SD) Company – the situation as in the Year 2008 onwards) Year 2008 onwards the current Organization has made some major changes into its working style to accommodate more systematic & workforce oriented processes & practices & made continuous improvement & innovation(s). During this tenure (i.e., since 2008), the company not only overcame all shortcomings mentioned at level 4, but thoroughly followed the procedures laid for level 5. The Company had recently also conducted an internal audit of its people related systems & processes and it was observed that this IT Company is following almost 70% of the parameters laid under PCMM level 5. Recently, the company formally applied for PCMM certification with the concerned agency QAI & the external audit has been initiated too. The company thus aims to bring continuous improvement & attain maturity in its overall system to achieve 100% compliance as pre-defined for the optimizing level of PCMM. Going by the pre-laid Process Areas under the PCMM level 5, the present Organisation analysis has been done as under. Since the IT Company is currently functioning at PCMM level 5 parameters to a great extent, a detailed analysis has been done of this level: Process Areas (KPA’s) Personal Competency Development - Workforce Practices - Individual Work Processes Coaching - Workforce Practices - Workforce Experience
Continuous Workforce Innovation - Performance Results - Workforce Practices
I. Personal Competency Development Under this Key Process Area, the present IT Organisation has been analysed in terms of its professional & self development of its workforce i.e., the systems/programs developed by the company for continuously improving individual work processes. The Organization has established processes with an aim to support individual initiative in continuously improving personal work processes i.e., individuals to have the freedom to: ? define their work processes ? plan their work ? set measurable goals for improving their performance ? analyze their work processes ? identify opportunities for improvement ? identify the knowledge and skills needed to make these improvements ? improve their work processes and ? eliminate the causes of defects in their work. Thus, the Organization is making continuous efforts to support personal competency development & to recognize improvements in individual work processes. Processes Documented policy for continuously improving individuals’ personal competencies. Key Strengths 1. Personal competency development activities to serve the business objectives and stated values of the organization. 2. Individuals are encouraged to continuously improve the personal work processes involved in their work. 3. Individuals participating in personal competency development activities set measurable goals for continuous improvement of their individual work processes. 4. Support is provided for assisting individuals to continuously improve their competencies. 5. All individuals are able to participate on a voluntary basis in continuously improving their individual work processes. 1. Adequate resources and funding are provided for continuously improving individual work processes. 2. Experienced individuals who have expertise in individual work process improvement are available for assisting in activities for continuous competency development. 3. Tools for supporting activities for continuous improvements in individual work processes are made available. Examples of tools to support activities for continuous improvements in individual work processes include: – Data collection tools, – Statistical analysis packages, – Spreadsheets, – Databases and other repositories and – Reporting and communication tools. Opportunities for Improvement Those engaging in personal competency development activities must receive adequate training in techniques for continuously improving individual work processes.
Organizational role(s) is assigned responsibility for coordinating activities for personal competency development across the organization.
Measurements are made and used to determine the status of activities for personal competency development. The organization’s effectiveness in implementing activities for Personal competency development
4. The organization’s near-term workforce plan allocates resources for continuous personal competency development activities. There are periodic reviews in place that verify: 1. Personal competency development activities comply with the organization’s policies and stated values. 2. Noncompliance items are handled appropriately. 3. All actions related to personal competency development are periodically reviewed to ensure that they conform to documented policies. 1. Appropriateness of the activities for personal competency development. 2. Progress in performing the activities for personal competency development. 3. Results from reviews of the activities for personal competency development against the organization’s values and appropriate policies. 4. Status of resolution for noncompliance issues.
Organization’s Personal Competency Development Practice Examples (Activities) parallel to PCMM Maturity Level 5 (Optimizing):
Activity-1 Special assignment, project oversight & other stretch roles to interested workforces to accelerate their development.
Activity-2 Feed back forum: promoting aspects that worked well; elimination of behaviors that effected adversely.
Activity-3 Role model: superiors pitching in to do any kind of work when help is needed by their resources in order to promote team work.
Activity-4 New Process Introduction: new process & technology to the work group & asking their feedback on their approach to getting them to speed.
Activity-5 People & competency development: developing their experience and capabilities; for problem avoidance & other growth aspects.
The above activities are documented in the policy termed as Skill & Competency Development (SCD) Program.
II. Coaching Since the Company is into specialised software product development, providing expert assistance to enhance the performance of individuals and teams had been always a high priority of this Organisation. The process usually involves: ? selection of the appropriate training institutes, individual trainers/coaches ? analyzing data on personal or team performance ? providing guidance on methods for improving performance ? evaluating progress toward goals for improving performance ? training the trainers (TTT) in coaching skills and ? the coaching activities are evaluated to make necessary improvements. Processes Coaches are selected for their expertise and prepared for their responsibilities. Coaches work with individuals to improve their personal competency and performance. Coaches work with teams to improve their team-based competencies and performance. Coaches’ work is rewarded to motivate them. Key Strengths 1. External help from experts are sought 2. Established trainers within the organisation plays a vital role in coaching 3. Responsibilities on mentoring are done on a rotation basis to enhance the learning aspect & grooming new coaches. 4. All support is provided for assisting individuals to take up mentoring role & continuously improve their competencies. 1. Coaches work with individuals to improve their personal competency and performance. 2. The process is well defined & documented 3. Progress monitoring is well established. Opportunities for Improvement
1. Personal competency development activities are done with teams too. 2. Noncompliance items are handled appropriately. 3. All actions are periodically reviewed to ensure that they conform to documented policies. Coaches are recognized for successful coaching: Examples of recognition for successful coaches include: – Awards, – Public recognition in meetings or newsletters, – Privileges, – Financial considerations and – Acknowledgment for success of coaching related to performance or career objectives.
Organization’s Coaching Practice Examples (Activities) parallel to PCMM Maturity Level 5 (Optimizing):
Activity-1 Coaching Tool Box: It contains tools that help resources learn through hands on experience; observing; reading; discussion etc.
Activity-2 Weekly De-briefing: Staff members are required to de-brief their success & problems of the previous week in their job; thus everyone’s learning is expanded in the group.
Activity-3 Office Library: employees are required to share books/articles they have read; encourage using them & it is followed up to see what developmental on-the job changes has occurred.
Activity-4 Mentor Role Play: Staff members are, on rotation required to become a coach for someone in their team; to understand mentoring relationship & other aspects too.
The above activities are documented in the policy called as Staff Coaching Guidelines (SCG). II. Coaching Since the Company is into specialised software product development, providing expert assistance to enhance the performance of individuals and teams had been always a high priority of this Organisation. The process usually involves: ? selection of the appropriate training institutes, individual trainers/coaches ? analyzing data on personal or team performance ? providing guidance on methods for improving performance ? evaluating progress toward goals for improving performance ? training the trainers (TTT) in coaching skills and ? the coaching activities are evaluated to make necessary improvements. Processes Coaches are selected for their expertise and prepared for their responsibilities. Coaches work with individuals to improve their personal competency Key Strengths 1. External help from experts are sought 2. Established trainers within the organisation plays a vital role in coaching 3. Responsibilities on mentoring are done on a rotation basis to enhance the learning aspect & grooming new coaches. 4. All support is provided for assisting individuals to take up mentoring role & continuously improve their competencies. 1. Coaches work with individuals to improve their personal competency and performance. 2. The process is well defined & documented 3. Progress monitoring is well established. Opportunities for Improvement
and performance. Coaches work with teams to improve their team-based competencies and performance. Coaches’ work is rewarded to motivate them.
1. Personal competency development activities are done with teams too. 2. Noncompliance items are handled appropriately. 3. All actions are periodically reviewed to ensure that they conform to documented policies.
Coaches are recognized for successful coaching: Examples of recognition for successful coaches include: – Awards, – Public recognition in meetings or newsletters, – Privileges, – Financial considerations and – Acknowledgment for success of coaching related to performance or career objectives. Organization’s Coaching Practice Examples (Activities) parallel to PCMM Maturity Level 5 (Optimizing):
Activity-1 Coaching Tool Box: It contains tools that help resources learn through hands on experience; observing; reading; discussion etc.
Activity-2 Weekly De-briefing: Staff members are required to de-brief their success & problems of the previous week in their job; thus everyone’s learning is expanded in the group.
Activity-3 Office Library: employees are required to share books/articles they have read; encourage using them & it is followed up to see what developmental on-the job changes has occurred.
Activity-4 Mentor Role Play: Staff members are, on rotation required to become a coach for someone in their team; to understand mentoring relationship & other aspects too.
The above activities are documented in the policy called as Staff Coaching Guidelines (SCG).
III. Continuous Workforce Innovation Under this Key Process Area, the present IT Organisation’s activities have been identified as under: ? The company has constantly improved its workforce practices and technologies ? It has implemented the most promising systems throughout the organization. ? There is an established mechanism in place for monitoring improvements in workforce activities, identifying needs for new practices, evaluating innovative practices and technologies, conducting trials of new practices and technologies and implementing the most beneficial ones across the organization. ? Improved practices for recruitment, new selection techniques ? Improved ways to manage performance ? Improved and innovative technologies for communication ? Creative compensation schemes ? Introduced methods for developing knowledge and skills, alternative career choices and new ways of organizing and empowering the workforce. The effectiveness of these continuous improvements in the Organisation’s practices is evaluated from time to time, quantitatively and the results are kept transparent & communicated to the workforce. Processes Innovative workforce practices and technologies are evaluated to determine their effect on improving core competencies and performance. Key Strengths The company takes care that it provides its resources the best of work environment and latest technologies (software) besides the instructional design technology. Ways for better communication technology and have an open culture too; and provides subscriptions to on-line databases. Opportunities for Improvement Though the Organisation has innovative and continuous improvement plans & practices in place, however, also needs to have a program that encourages individuals and teams to propose improvements to workforce practices and activities (i.e., greater degree of INVOLVEMENT & INERTIA).
The Innovations have been incorporated into workforce related organization’s functions such as: workforce – Selection or training, practices and – Computer-aided training technology, activities are – Groupware and team coordination technologies, improved – Knowledge assessment methods continuously. – Performance enhancement methods Participation in Continuous workforce innovations across the organization improving the includes: organization’s - A committee reviewing recommendations submitted
workforce practices and activities is organizationwide.
by individuals or groups for improvements in workforce practices, - Specialists in each area working to improve practices in their area, - Workforce experts working independently or as a team with technologists to develop innovative workforce technologies in such areas as training or group work. Organization’s Workforce Innovation Practice Examples (Activities) parallel to PCMM Maturity Level 5 (Optimizing):
Activity-1 Career Exploration through Increased Counselling, New Processes: professional counsellors are hired by the company.
Activity-2 Individual Training Accounts: are maintained by the Organisation tracking the progress of employee training & innovation.
Activity-3 Expanded Training Opportunities: Company has tie up with NIIT, C-Dac & other technical institutes to provide expanded training to its resources.
Activity-4 Innovation Reward Program (Tangible Savings): If resources provide creative & practical ideas that lead to tangible savings & improved services within their team in the organisation, cash reward is extended to the team, payable in equal proportion to the team members, for innovative & creative idea generation.
The above activities are documented in the policy known as Learning Information System (LIS). SECTION-IV CMMi Practice Level: Since the company is in IT industry - Software Product Development, it is relevant to mention the CMMi level of the present company besides the analysis done on PCMM parameters. In case of Capability Maturity Model (CMMi), the present Organisation is functioning at level 4 (for some process areas) & is already operating at level 5 in another set of process. It is continually aiming to achieve CMMi level 5 for all its Process Areas - KPA’s. The auditing activities for certification are already undergoing in the Organisation.
The KPA’s at CMMi level 4 are the following:
? ? Product and Process Quality Software Quality Management, Quantitative Process Management.
?
? ?
The KPA’s at CMMi level 5 are the following; ?
Process Change Management, Technology Change Management, Defect Prevention.
The company is constantly taking care of the following aspects with an aim to get high level accreditation of CMMi for its entire process activities; these include: ? ? ? ? addressing software engineering and other disciplines that have an effect on software development and maintenance providing integrated process improvement reference models building broad community consensus & harmonizing with related standards and enabling efficient improvement across disciplines relevant to software application development and maintenance
Measurable Achievements: The present IT Organization, has really done well over the years, by improving its process & people activities through the years & the position at which it stands today it has earned real benefits, as briefly illustrated in these four sub-sections: Process Efficiency: Under this element, it has been monitored and analyzed how the Organization performed with greater efficiency; improved its operation and supply chains. It looked at comparative performance metrics in three key areas: Internal operational processes; External developments and trends and Competitive benchmarking.
Process Efficiency
Drop in appraisal time from 1 month to 1 week Indent-to-join cycle time drop from 60 to 40 days
“Structured Knowledge Management” “Improved talent attraction” resource avg. stability raised from 3 to 7 years
Process Efficiency
Process Efficiency
33% drop in attrition
Delivery Optimization: Under this element, Service Delivery Optimization has yield Competitive Advantage to this Organisation and the IT service management of the Company provides for the effective and efficient delivery of technology services in support of changing business needs. • Drop in effort variation by 31% •“Helped leverage investments in Software-CMM and Personal Software Process” •Drop in rework due to higher competency (21% co-relation)
Delivery Optimization
Delivery
Optimization
Delivery Optimization
•With 110% increase in training time, improvement in review efficiency by 100% and drop in rework by 45%
Employee Benefits: All forms of consideration given by a company to the employees for services rendered by the employees have been taken into account, while assessing the employee benefits aspects and the comparative growth related to it: Employee Benefits
• 60% increase in ESAT (employee satisfaction)
Employee Benefits
• 45% in people exceeding performance expectations due to competency-based recruitment
Employee Benefits
• “Higher employee morale” • "Created a sense of real empowerment"
Business Impact: Business impact, being an important and essential component of an organization's business continuance plan, its analysis has also been done to track the overall progress made by the Company.
Business Impact
12% increase in customer feedback scores
Business Impact
“Enabled scalability”
Business Impact
“Increased competitive edge"
PROJECT SUMMARIZATION The Analyses of the present IT Organisation’s operations & functioning with that of People Capability Maturity Model (People CMM) has thoroughly helped to understand critical people issues, processes of managing and developing the workforces. The People CMM indeed helps organizations characterize the maturity of their workforce practices, establish a program of continuous workforce development, set priorities for improvement actions, integrate workforce development with process improvement and thus establish a culture of excellence. The five maturity levels helps establish successive foundations for continuously improving individual competencies, developing effective teams, motivating improved performance and shaping the workforce the organization needs to accomplish its future business plans. Each maturity level is a well-defined evolutionary plateau that institutionalizes new capabilities for developing the organization’s workforce. It is beyond any doubt that by following the maturity framework, an organization can avoid introducing workforce practices that its employees are unprepared to implement effectively. The CMMi: In this project, a small portion on the CMMi has been also covered. As the current Organisation being into IT, it was considered valuable to mention this model (besides PCMM), so as to highlight major IT issues/concepts. This is also a very useful tool for obtaining project funding for key initiatives such as enterprise data asset management and data repository development. In fact, many Corporations have IT goals centred on the CMMi levels. The model also gives companies a mechanism to compare themselves with other companies within their industry/domain (benchmark). A Final Word Both PCMM & CMMi has become a powerful tool for promoting innovation and realizing the various intricacies of people & business process. The value of these processes relates directly to the effectiveness of an organization to deal with today’s competitive situations and create their future. Information Audit, Benchmark and Maturity measure plays a vital role for an organization. The basic purpose of this project study has been, therefore, achieved by being able to do the Information audits of the present IT Company and thus developing the Knowledge and Information Gap(s) in the Organization. And PCMM Maturity Measure Model has helped in carrying out such an Elaborative & Systematic Analysis.
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