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Talent Management - NASSCOM Session for Software Products 2014
- 1. TALENT MANAGEMENT Scaling up for Tomorrow SECURE YOUR FUTURET O D A Y EXPERIENCE AGILITY PASSION CONSULTING 3nayan.com
- 2. Our storyline today Talent context for Products’ Companies Looking for Solutions (an interaction) Scaling Up, Strategy for tomorrow ©2014, 3nayan Consulting. 2 All rights reserved.
- 3. CONSULTING Talent Context For Software Products Companies ©2014, 3nayan Consulting. 3 All rights reserved.
- 4. State of products’ business • Software products industry still in nascence • $1.4bn in 2008, expected to be $10bn by 2015 • Software product exports worth $1.6bn in 2013 • ~60% firms sell their products in India before going global • Significant VC/PE activity in last 5 years 12 10 8 6 4 2 Software Products Industry ($billion) Indian product companies use domestic market for “testing waters”. ©2014, 3nayan Consulting. 4 All rights reserved. 1.4 10 0 FY2008 FY2011 FY2015P
- 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 training Other Specialists, 3% Financial Specialists, 5% Post Grads, 13% It is a “fierce battle” out there for talent acquisition. ©2014, 3nayan Consulting. 5 All rights reserved. Engineering Grads, 32% Graduates (excl. engg.), 45% Other Grads, 4% EDUCATION PROFILE
- 6. 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 training It is a “fierce battle” out there for talent acquisition. ©2014, 3nayan Consulting. 6 All rights reserved. 3% Management 1% Postgraduates 16% Technical graduates 17% Other graduates 14% Science graduates 14% Commerce graduates 35% Arts graduates FY2014 graduate out-turn Total 5.34mn
- 7. 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. ©2014, 3nayan Consulting. 7 All rights reserved.
- 8. What makes it difficult and complex? ©2014, 3nayan Consulting. 8 All rights reserved. • 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
- 9. CONSULTING Looking for Solutions An Interaction ©2014, 3nayan Consulting. 9 All rights reserved.
- 10. 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
- 11. 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. ©2014, 3nayan Consulting. 11 All rights reserved. Daliance Mart DATAN SATAN DATAN has to stop the brain drain. If you were the CEO, what would you do ?
- 12. 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. ©2014, 3nayan Consulting. 12 All rights reserved. PROJECT A PM TL TL TL Pgmr TL Pgmr PROJECT A PM TL Pgmr TL Pgmr What is the key problem here ? What strategy would you put in place ?
- 13. CONSULTING Scaling Up Strategies for Tomorrow
- 14. 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
- 15. Quick recap Whether you like it or not, you are in denial or in acceptance; Talent needs to be engaged and managed differently
- 16. Stop admiring the problem. Adopt the change! ©2014, 3nayan Consulting. 16 All rights reserved. PLCM PMO Raise the Exit Barrier End-to-End / Double Roles CXO-1 and CXO-2 levels Partner-like Incentives Solution Domain Architects Mentoring Framework
- 17. Where does one start? • Industry accepted pyramid for moving towards a goal • Complex, too many movable parts • Unwieldy Goals & Definition of Winning Growth Strategy Innovation Commercial Excellence © 2014, 3nayan Consulting. 17 All rights reserved. Fuel for Growth People, Culture, Process
- 18. GRO4WIN – influencers Policies Your Business © 2014, 3nayan Consulting. 18 All rights reserved. Regulations Political Environment Economy Market • Technology • Demand • Deal size/ type Competition Your People Buyer Sponsor
- 19. Basic business model components towards GRO4WIN © 2014, 3nayan Consulting. 19 All rights reserved. Customer Value Proposition Profit Factors Resources Processes •Target customer base • Offering • Influence on other areas • Processes •Rules, Data, Metrics •Analysis • Profit or margin maximization o Revenue Model o Cost Structure •Resource Velocity •Resource Types oPeople oProducts, Equipment oTechnology, Information oBrands oPartnerships, Alliances, Channels
- 20. GRO4WIN – areas of influence, and impact © 2014, 3nayan Consulting. 20 All rights reserved. Buyer (Client) Degree of influence Degree of impact Your People Your Business Sponsors (Client)
- 21. Impact of talent transformation OUTCOMES TRANSFORMATION Leadership Capability Copyright © 2014 3nayan Consulting. All Rights Reserved. People Engagement 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 Management ENABLERS Career Planning Competency Management Performance Management Learning & Development 21
- 22. Individual Vs Organizational perspectives Outsourcing culture Negative publicity Not aligned to aspirations Different technology On-boarding Projects ©2014, 3nayan Consulting. 22 All rights reserved. Outsourcing focus Forced to take irrelevant training Self Development Tech resources have no career Fixed time promotions Client / Management impact promotions Promotion & Career Growth Other offers lesser CTC Offer reneg No choice given, mostly support projects Not enough training Lack of career planning Small organization disenchantment No domain knowledge Lack of mentors Domain / Product Management knowledge Individuals not self driven Unreasonable expectations Raw resources Half hearted involvement Mentors bandwidth Want promotion , but not the accountability
- 23. Talent management components Business Goals Talent Management Strategy & Planning Acquisition 23 Performance Management Competency Capability Development Learning & Development Career Framework Retention Recognition Culture Succession Planning Leadership Development Rewards & Compensations Induction Technical Capability Leadership Processes Soft Skills Metrics, Reports, Analytics Organization Infrastructure Policies Processes
- 24. Competency & Talent Management Two sides of the coin ©2014, 3nayan Consulting. 24 All rights reserved.
- 25. Business drives competency ©2014, 3nayan Consulting. 25 All rights reserved. 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
- 26. Competency based talent management Performance Behavior Capability Skills Experience Roles & Goals Core Components ©2014, 3nayan Consulting. 26 All rights reserved. Competency Learning Tracks Careers Career Planning Levels Progression Job Profile Candidate Goal Setting Reviews Feedback Consolidate Ratings Promotions Calendar Nomination Feedback Content Reward Recognition Retention Culture Process
- 27. Competency impacts all business functions H i r i n g R e s o u r c e A l l o c a t i o n D e l i v e r y P e r f o r m a n c e ©2014, 3nayan Consulting. 27 All rights reserved. Behavior Capability Competency Skills Experience Tracks Careers Career Planning Levels Progression Core Components L e a r n i n g R e t e n t i o n B u s i n e s s D e v e l o p m e n t
- 28. Competency levels & types 5 Expert 4 Proficient 3 Competent 2 Advanced Beginner 1 Novice Set strategy, inspire, mobilize 29 4 Expert 3 Proficient 2 Beginner 1 Novice 5 level - Dreyfus Model 3 Competency Expert 2 Proficient 1 Beginner 7 6 Initiate/influence 5 Ensure/Advice 4 Enable 3 Apply 2 Assist 1 Follow 7 level – SFIA Model 4 level 3 level Technical Knowledge Skill Behavioral Process
- 29. SME organization people needs higher competency Large Organizations SME Brand, Growth, Strategy, Agility Operations • 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
- 30. Concepts Functions 31 Traits Portfolio & 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. TRANSFORM MANAGE LEAD Leadership is the competency to grow
- 31. Talent Management has significant impact TM Business Functions Recruiting Resource ©2014, 3nayan Consulting. 32 All rights reserved. management Projects & Delivery Capability Building Pre-Sales People Matters Organizational Development Competency Framework Mapping Employees Career Paths & Planning Performance Management Evaluation Model Measurement & Feedback Goal Setting Learning & Development Strategy Demand, Nomination, Calendar Execution & Feedback Leadership Development Mentoring Retention Culture Rewards & Recognition Retention (Pro/Re-active) People Mgmt workshops
- 32. Problems need the right solution mix TM Business Functions ©2014, 3nayan Consulting. 33 All rights reserved. Competency Management Performance Management Learning & Development Retention Management Building Managerial skills Define leadership path Goals Vs expectations , Contribution based. Levels of training, IdentifyMentors 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
- 33. Attract and retain to maintain your competencies Organizational Culture Rewards Recognition Retention Process ©2014, 3nayan Consulting. 34 All rights reserved. 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 • Compensation, Perks, Promotions • Awards, Visibility, Appreciations • Proactive and Reactive process Decongest the skill concentration
- 34. IDENTITY CAPABILITY Helping 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 PASSION CONSULTING 3nayan.com
Editor's Notes
- #5: Average age of software products companies is 2.5 years and majority of them are very small with just 8 employees. Software products export of %1.6bn is about 2% of the overall s/w exports VC/PE investments worth $710mn in last 5-years
- #6: 2mn people added in last decade alone. Industry is adding headcount roughly at a rate of about 160,000-180,000 people this year (6%). This also means that we are still largely in revenue proportional to headcount model. 58% workforce is from tier-2/3 cities and 74% is below 30 years in age. Indian IT industry also employs over 60,000 foreign nationals Did you notice that 6% growth in headcount corresponding to ~10% growth in revenue, implying somewhere it is starting to break the revenue/headcount relationship. Number of patents filed by Indian companies has grown from 150 in 2009 to 1,000+ in 2013 – this does not include patents filed by MNC for work done by employees in India. 32% workforce is engineering graduate and 25% workforce is domain specialists – translate into absolute numbers and they are staggering. Annual spend on training - $1.6bn
- #7: 2mn people added in last decade alone. Industry is adding headcount roughly at a rate of about 160,000-180,000 people this year (6%). This also means that we are still largely in revenue proportional to headcount model. 58% workforce is from tier-2/3 cities and 74% is below 30 years in age. Indian IT industry also employs over 60,000 foreign nationals Did you notice that 6% growth in headcount corresponding to ~10% growth in revenue, implying somewhere it is starting to break the revenue/headcount relationship. Number of patents filed by Indian companies has grown from 150 in 2009 to 1,000+ in 2013 – this does not include patents filed by MNC for work done by employees in India. 32% workforce is engineering graduate and 25% workforce is domain specialists – translate into absolute numbers and they are staggering. Annual spend on training - $1.6bn
- #8: Most software companies are really small. And as mentioned earlier, average age is less as well. There is another report on Software Product Industry that infers that most software companies have TWO founders that too having homogeneous skills.
- #17: Product Life Cycle Management – patch, release, features, etc. You do not need people – you have roles and you need skills and competencies to staff those roles. Undertake succession plan for roles – it helps you to be prepared and your people appreciate the effort and investment.
- #22: Reason behind the colours in the Strategic Outcomes box Growth & Sustenance – in Orange – signifies passion, happiness and optimism. Raising Capital / Exit – in dark Green is the colour of money Customer Engagement – in Blue signifies trust, peace, stability Business Agility – in Turquoise, implies communication, clarity of mind and creates emotional stability. For Enablers: The chosen colour is Imperial Blue which signifies (along with Indigo) integrity, sincerity and is often associated with structure and rituals. Areas of impact: The shade of brown shows earthiness, practicality.
- #23: Upper portion is people crib/complaints/grievance And lower portion is organizational take on people.
- #30: SFIA – Skills Framework for Information Age (Sophia) specifically created for ICT professionals – perhaps most commonly used these days. Dreyfus model of skills acquisition – two brothers proposed the model in 1980.