talent management - nasscom session for software products 2014

TALENT MANAGEMENTScaling up for

Tomorrow

SECURE YOUR

FUTURE T O D A YEXPERIENCE AGILITY PASSION

CONSULTING3nayan.com

©2014, 3nayan Consulting. All rights reserved.2

Our storyline today

Talent context for Products’

Companies

Looking for Solutions

(an interaction)

Scaling Up, Strategy for tomorrow

CONSULTING

Talent ContextFor Software Products Companies



State of products’ business

• Software products industry still in nascence• $1.4bn in 2008, expected to be $10bn by 2015• Software product exports worth $1.6bn in 2013•~60% firms sell their products in India before going global• Significant VC/PE activity in last 5 years

Indian product companies use domestic market for “testing waters”.

1.4

10

0

2

4

6

8

10

12

FY2008 FY2011 FY2015P

Software Products Industry($billion)

CAGR

32.5%


Human capital

• Employs ~12.5mn (direct / indirect) people

• Large number of engineering graduates

• Employs large number of domain specialists – Doctors, CAs, Lawyers, Mathematicians, Statistician, etc. (mainly for BPM)

• Increase in the number of patents filed by Indian companies, albeit below the potential

• Large spend on trainingIt is a “fierce battle” out there for talent acquisition.

Engineering Grads; 32%

Graduates (excl. engg.);

45%

Post Grads; 13%

Financial Specialists;

5%

Other Special-ists; 3%

Other Grads; 4%

EDUCATION PROFILE


Human capital

• Employs ~12.5mn (direct / indirect) people

• Large number of engineering graduates

• Employs large number of domain specialists – Doctors, CAs, Lawyers, Mathematicians, Statistician, etc. (mainly for BPM)

• Increase in the number of patents filed by Indian companies, albeit below the potential

• Large spend on trainingIt is a “fierce battle” out there for talent acquisition.

3%Managemen

t

1%Postgraduat

es

16%Technical graduates

17% Other graduates

14%Science

graduates

14%Commercegraduates

35%Arts

graduates

FY2014 graduate out-turnTotal 5.34mn


Talent scenario for products companies

• Majority of software product companies have 8 employees• Most companies have TWO

founders having homogeneous skills – lack of diversity of skills• Top focus areas• Enterprise business software• Software-as-a-Service• Consumer

• Talent most difficult to get:• Product management• Product development/ engineering• Sales and marketing

Being small, there is increased dependence on talent and retention.


What makes it difficult and complex?• Building managerial and other

diverse skills

• Integrated Competency to Learning

• Intense and fierce competition – talent acquisition and retention

• Increased compensation to retain

• Motivation via diverse work, culture and recognition

• Regular promotions resulting in top heavy pyramid

• No critical mass to compare per level

• Need based training, mostly tech only

• Limited bandwidth to train for growth

CONSULTING

Looking for SolutionsAn Interaction


Lets chat a bit

1. Survey (distributed separately)• Being conducted across a group larger than this one• Blind survey, but you are welcome to put in your name and contact details if you would want us to reach out to you• Provide your email for a copy of the survey results.

2. Experience Sharing • Two scenarios presented•What will be your strategic solution• 15 minutes each


Scenario 1 – Plug the brain drain

DATAN is a small, niche player in the Data Analytics space, operating out of Jaipur, and has a 60 people team.

One of the large clients of DATAN is Daliance Mart, who have a physical and online presence.

Due to their online presence, they spend a large amount of their budget on analytics, DATAN providing the service.

One of the competitors of DATAN is a recent startup SATAN, is a year old, and has been trying to make inroads into Daliance Mart. And DATAN has lost 4 SME’s in the past 2 months, all 4 joining the rival company at a 40% pay hike.

The Management of DATAN has called for an emergency executive meeting to discuss the situation.

Daliance Mart

DATAN

DATAN has to stop the brain drain.

If you were the CEO, what would you do ?

SATAN


Scenario 2 – Too many cooks

CHIPPO is a niche player in the Embedded Systems space, operating out of Delhi and Kolkata, and has a 100 people team across both locations.

The company has a steady stream of business coming in, though the profitability is an issue.

One of the key requirements of their business is that there is should be ample subject matter experts on their teams.

Over the years, the resources have stayed with the company, have been promoted regularly, at an average each Team Lead having 7-8 years with CHIPPO.

Today, there is a glut of SME’s, with a typical project team of 8 resources having at least 4-5 Team Leads in it.

PROJECT A

PM

What is the key problem here ?

What strategy would you put in place ?

TL

TL

TL

Pgmr

TL

Pgmr

PROJECT A

PM

TL

Pgmr

TL

Pgmr

CONSULTING

Scaling UpStrategies for Tomorrow

Quick recap• Right talent is the key to success of your business• Small product companies can’t compete with the biggies• Getting required talent is becoming more difficult and complex• Leadership at execution level, more technical less business/ relationship• Limited exposure to technology, domain and global business• Lack of product lifecycle knowledge and tools• Limited succession planning• Less focus on organization and processes, more on cash-flow• Retaining and keeping people motivated is a BIG challenge

Quick recap

Talent needs to be engaged and managed differently

Whether you like it or not, you are in denial or in acceptance;


Stop admiring the problem. Adopt the change!

PLCM PMORaise the

Exit Barrier

CXO-1 and CXO-2 levels

End-to-End / Double

Roles

Partner-like

Incentives

Solution Domain

Architects

Mentoring Framework

© 2014, 3nayan Consulting. All rights reserved.17

Where does one start?

• Industry accepted pyramid for moving towards a goal

• Complex, too many movable parts

• Unwieldy

Goals & Definition of Winning

Innovation

Commercial Excellence

Fuel for

Growth

Growth Strategy

People, Culture, Process


Your Business

GRO4WIN – influencers

Regulations

Political Environme

nt

Policies

Economy

Market• Technology•Demand•Deal size/ type

Competition

Your People

Buyer Sponsor


Basic business model components towards GRO4WIN

Profit Factors

Customer Value

Proposition

Resources

Processes

•Target customer base•Offering• Influence on other areas

•Processes•Rules, Data, Metrics•Analysis

•Profit or margin maximizationo Revenue Model o Cost Structure

•Resource Velocity•Resource TypesoPeopleoProducts, EquipmentoTechnology, InformationoBrandsoPartnerships, Alliances, Channels


GRO4WIN – areas of influence, and impact

Buyer

(Client)

Degre

e o

f in

fluence

Degree of impact

Your People

Your Busines

s

Sponsors (Client)

Copyright © 2014 3nayan Consulting. All Rights Reserved.21

TRANSFORMATION

Impact of talent transformation

OUTCOMESLeadershi

pCapability

People Engageme

nt

Talent Attraction

Cost of Retention Utilization

BOOSTERS

Productivity Improvement Culture Recognition

Mentoring Retention Online Tools

AREAS of IMPACT

Project Delivery

Sales / Presales

People Matters

Capability Functions

Resource Manageme

nt

ENABLERS

Career Planning

Competency

Management

Performance Management

Learning & Development


Individual Vs Organizational perspectives

On-boarding ProjectsSelf

Development

Promotion & Career Growth

Other offers lesser CTC

Offer reneg

Negative publicity

Outsourcing culture

No choice given, mostly support projects

Different technology

Not aligned to aspirations

Not enough training

Forced to take irrelevant training

Outsourcing focus

Lack of career planning

Client / Management impact promotions

Fixed time promotions

Tech resources have no career

Small organization disenchantment

Lack of mentorsNo domain knowledge

Domain / Product Management knowledge Individuals not self driven Unreasonable

expectations

Raw resources Half hearted involvement Mentors bandwidth Want promotion , but not the accountability

23

Business Goals

Talent Management Strategy & Planning

Talent management components

Acquisition Performance Management

Capability Development


Career Framework

Recognition

Culture

Succession Planning

Leadership Development

Metrics, Reports, Analytics Organization Policies ProcessesInfrastructure

Competency

Rewards & Compensations

Technical Capability Leadership Processes Soft SkillsInduction

Retention

Competency & Talent ManagementTwo sides of the coin



Business drives competency

What

•Defines our business

•Differentiates us in the marketplace

• Embodies our vision, mission and goals

• Future opportunities do we want to pursue to keep us competitive

• Products and services provides us access to multiple markets

•Will help us dominate the business we are in

Business Projects

Personal Leadership


Competency based talent management

Behavior Capability

Skills Experience

Competency

Tracks Careers

Levels Progression

Career Planning

Job Profile Candidate

Goal Setting Reviews

Roles & Goals

Feedback Consolidate

Ratings Promotions

Performance

Calendar Nomination

Feedback Content

Learning

Retention ProcessCultureRecognit

ionReward

Core Components


Competency impacts all business functions

Behavior Capability

Skills Experience

Competency

Tracks Careers

Levels Progression

Career Planning

Core Components

H i r i n g

P e r f o r m a n c e

L e a r n i n g

R e t e n t i o n

R e s o u r c eA l l o c a t i o n D e l i v e r y

B u s i n e s sD e v e l o p m e n t

29

Competency levels & types

5 level - Dreyfus Model 4 level 3 level 7 level – SFIA Model

Competency

Technical

Knowledge

Skill

ProcessBehavioral

Large Organizations

SME

Operations

Brand, Growth, Strategy, Agility

SME organization people needs higher competency

• Talent strategy is aligned to business strategy and plans

• Focus is on people rather than process

• Aim is to build leaders from an early stage

• Building core competencies is key to ensuring required skills

• Focus on retention to reduce cost of recruitment

• Ensuring transparent performance management system

30

Expert

Proficient

Competent

Beginner

Novice

People

focus

Process

focus

31

Functions

Traits

ConceptsPortfolio & Business

Management

Advanced course covering the finer aspects of leading, mentoring and value creation.

End-End Project Management

Course covering Core elements & portions of Leadership Traits & Functions.

An induction to Leadership

Industry/Business context

Client/People management

Delivery leadership Business

Communication Financial awareness

Building Client Relationships.

People and Organizational growth

Mentoring Grow into a Leader

Independently manage projects.

Manage Clients and Deliverables .

Manage people and resources.

Leadership context awareness.

Individual Contributor to Team View.

Shifting to Business outlook & Task mgmt.

TRANSFORMMANAGE

LEAD

Leadership is the competency to grow


Talent Management has significant impact TM Business Functions Recruiti

ngResource management

Projects & Delivery

Capability Building

Pre-Sales People Matters

Organizational Development

Competency Framework

Mapping Employees

Career Paths & Planning


Evaluation Model

Measurement & Feedback

Goal Setting


Strategy

Demand, Nomination, Calendar

Execution & Feedback

Leadership Development

Mentoring

Retention

Culture

Rewards & Recognition

Retention (Pro/Re-active)

People Mgmt workshops


Problems need the right solution mix

TM Business Functions Competency Management



RetentionManagement

Building Managerial skills Define leadership path

Goals Vs expectations ,Contribution based.

Levels of training, Identify Mentors

Tag to senior mgmt, Recognition via Additional responsibility, etc

Integrated Competency to Learning

Increased compensation to retain

Motivation via diverse work, culture and recognition

Regular promotions resulting in top heavy pyramid

No critical mass to compare per level

Need based training only, and mostly technical

Limited bandwidth to train for growth


Attract and retain to maintain your competencies

Identify Critical Talent

Holding Managers accountable for attrition

ESAT at the Team level

1-1 marking for Managers and above

Cannot afford even one bad apple

Work Culture – Openness, Learning, etc

People Culture - Respect

Retention is a process – Proactive & Reactive

• Work Culture• People Culture

Organizational Culture

• Compensation, Perks, Promotions

Rewards

• Awards, Visibility, Appreciations

Recognition

• Proactive and Reactive process

Retention Process

Decongest the skill concentration

IDENTITY

CAPABILITYHelping organizations be business and people proficient

A group of highly qualified SMEs and entrepreneurs who share a common mission of making clients successful•Bring top tier global consulting and execution expertise along with ease of engagement and agility.

Provide deep insight, expertise and execution help enabling clients reach their goals.

•Outcome based strategies and implementations, bringing in real business value and not just reducing costs;

• Crisp business case backed strategies and execution which integrate new operating models with enhanced organizational design, technology blueprint, and business aspirations.

EXPERIENCE AGILITY PASSIONCONSULTING

3nayan.com

talent management - nasscom session for software products 2014

Leadership & Management