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People Capability People Capability Maturity Model Maturity Model

(PCMM)(PCMM)

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What is PCMM?What is PCMM?

Attracting, nurturing and retaining skilled Attracting, nurturing and retaining skilled and talented manpower is the aim of and talented manpower is the aim of PCMMPCMM

Functional road map to achieve Functional road map to achieve organizational goalsorganizational goals

Integrating workforce development with Integrating workforce development with process improvement and thereby process improvement and thereby fostering a culture of excellencefostering a culture of excellence

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ObjectiveObjective

To design and implement highly effective To design and implement highly effective workforce improvement programsworkforce improvement programs

Helps the organizations to increase their Helps the organizations to increase their efficienciesefficiencies

Injecting quality into the HR systemsInjecting quality into the HR systems Establishing an integrate system of Establishing an integrate system of

practices that mature through alignment practices that mature through alignment with the organization’s objectives, with the organization’s objectives, performance and changing needsperformance and changing needs

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OriginOrigin

Has been developed by the Software Has been developed by the Software Engineering Institute of Carnegie Mellon Engineering Institute of Carnegie Mellon University by Dr. Bill CurtisUniversity by Dr. Bill Curtis

These processes that will help the These processes that will help the workforce to perform better and have a workforce to perform better and have a higher moralehigher morale

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Basic people issues that lead Basic people issues that lead to employee turnoverto employee turnover

Extreme workloadExtreme workload Perception of work as unrewardingPerception of work as unrewarding Conflict within team membersConflict within team members Poor relationship with supervisorsPoor relationship with supervisors To address these problems, Curtis thought To address these problems, Curtis thought

about building an institutionalized and about building an institutionalized and standard based HR frame work, which lead standard based HR frame work, which lead to PCMMto PCMM

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The ModelThe Model

The term ‘capability’ stood of the level of The term ‘capability’ stood of the level of knowledge, skills and abilities available to knowledge, skills and abilities available to perform business processesperform business processes

The term ‘maturity’ indicates an The term ‘maturity’ indicates an evolutionary path of improvement from evolutionary path of improvement from inconsistent workforce practices towards a inconsistent workforce practices towards a state of continuous improvementstate of continuous improvement

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Strategic ObjectivesStrategic Objectives

Designed for software organizationsDesigned for software organizations– Improving the capability of software Improving the capability of software

organizations by increasing the capability organizations by increasing the capability of the workforceof the workforce

– Ensuring that the software development Ensuring that the software development capability is an attribute of an capability is an attribute of an organization rather than that of few organization rather than that of few individualsindividuals

– Aligning the motivation of individuals Aligning the motivation of individuals – Retaining human assetsRetaining human assets

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Assessment ToolAssessment Tool Acts as a model of assessment that grades Acts as a model of assessment that grades

companies on the basis of their workforce practicescompanies on the basis of their workforce practices It evaluates companies on a complex set of criteria It evaluates companies on a complex set of criteria

involving both the softer human issues like involving both the softer human issues like business environment and employee motivation, business environment and employee motivation, and the harder aspects including compensation and the harder aspects including compensation levels and turnover figureslevels and turnover figures

Guides organizations in selecting high priority Guides organizations in selecting high priority improvement actions based on their current level improvement actions based on their current level of maturityof maturity

It helps them to decide at which level do they It helps them to decide at which level do they stand and what do they need to do in order to stand and what do they need to do in order to move up the laddermove up the ladder

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StructureStructure PCMM comprises of five evolutionary PCMM comprises of five evolutionary

stages known as maturity levelsstages known as maturity levels Each maturity level is well-defined Each maturity level is well-defined

evolutionary plateau that establishes and evolutionary plateau that establishes and institutionalizes a level of capability for institutionalizes a level of capability for improving the workforceimproving the workforce

Each level is characterized by different set Each level is characterized by different set of goals, practices, and process areasof goals, practices, and process areas

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The Five Levels of PCMMThe Five Levels of PCMMLevel 5 Change

Optimizing management

Level 4CapabilityPracticable Management

Level 3 CompetencyDefined Management

Level 2 PeopleManaged Management

Level 1 InconsistentInitial Management

ContinuouslyImprovingpractices

Measures andEmpoweredpractices

Competency basedpractices

Reportablepractices

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The Initial Level: Maturity level The Initial Level: Maturity level 11

Characterized by inconsistency in management Characterized by inconsistency in management practicespractices

No well-defined set of workforce practices and also No well-defined set of workforce practices and also lacks talented and trained individual to perform such lacks talented and trained individual to perform such practicespractices

Practices performed ritualistically and inconsistentlyPractices performed ritualistically and inconsistently Ill-prepared managers and failure in handling the Ill-prepared managers and failure in handling the

issues of workersissues of workers Failure in meeting goals an develop its workforce Failure in meeting goals an develop its workforce

resulting in emotional detachment of employeesresulting in emotional detachment of employees Demotivated workforce and turnoverDemotivated workforce and turnover Retention of talented employees becomes a major Retention of talented employees becomes a major

concern for organizations at this levelconcern for organizations at this level

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The Managed Level – Maturity The Managed Level – Maturity Level 2Level 2

The managers recognize the need of developing The managers recognize the need of developing repeatable methods for activities for ensuring repeatable methods for activities for ensuring efficient implementation of workforce practicesefficient implementation of workforce practices

Management emphasizes upon need of managers Management emphasizes upon need of managers to accept personal responsibilities of performance to accept personal responsibilities of performance of their own own unitsof their own own units

The organization policies are designed to aid the The organization policies are designed to aid the organizations in continuously improving the organizations in continuously improving the knowledge, skills, motivation and performance of knowledge, skills, motivation and performance of its workforceits workforce

This is done in order to regularize the practices This is done in order to regularize the practices and maintain consistency across various unitsand maintain consistency across various units

(contd.)(contd.)

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It creates a more rational and motivating work It creates a more rational and motivating work environment for employees and helps achieve environment for employees and helps achieve stable environments for performing workstable environments for performing work

The focus at this stage is on making all resources The focus at this stage is on making all resources available, managing individual performance and available, managing individual performance and coordinating them into effective unit performancecoordinating them into effective unit performance

The process areas include compensation, The process areas include compensation, communication and coordination, training and communication and coordination, training and development, performance appraisal and work development, performance appraisal and work environmentenvironment

Helping the addressing the issue of attrition Helping the addressing the issue of attrition

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The Defined Level – Maturity The Defined Level – Maturity Level 3Level 3

After laying down the foundation of basic practices After laying down the foundation of basic practices at the unit level, the organization moves ahead to at the unit level, the organization moves ahead to develop an integrated infrastructure that binds the develop an integrated infrastructure that binds the capability of workforce to strategic business capability of workforce to strategic business objectivesobjectives

At this stage the organization intends to develop At this stage the organization intends to develop the workforce competencies that will help it to the workforce competencies that will help it to achieve its business objectiveachieve its business objective

Work force competency can be explained as a Work force competency can be explained as a ‘cluster of knowledge, skills and process abilities ‘cluster of knowledge, skills and process abilities which acts as critical pillars for supporting the which acts as critical pillars for supporting the strategic business plansstrategic business plans

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The key process areas that assist the The key process areas that assist the organization at this level are:organization at this level are:

Participatory cultureParticipatory culture Workgroup developmentWorkgroup development Competency analysis and developmentCompetency analysis and development Workforce planning and career developmentWorkforce planning and career development

Workgroups are developed and given enough Workgroups are developed and given enough autonomy to perform efficiently and graduated autonomy to perform efficiently and graduated career opportunities are laid down to motivate career opportunities are laid down to motivate and guide individual developmentand guide individual development

Constant reinforcement, rewards help in Constant reinforcement, rewards help in developing a sense of responsibility among developing a sense of responsibility among employeesemployees

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The Predictable Level – Maturity The Predictable Level – Maturity Level 4Level 4

In this stage capability is quantitatively In this stage capability is quantitatively managedmanaged

Key process areas at this level are Key process areas at this level are – mentoringmentoring– organizational capability managementorganizational capability management– quantitative performance managementquantitative performance management– competency based assetscompetency based assets– empowered workgroups empowered workgroups – competency integrationcompetency integration

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These processes aim at empowering and These processes aim at empowering and integrating workforce competencies and manage integrating workforce competencies and manage performance quantitativelyperformance quantitatively

Focus at this level is on reducing variation and Focus at this level is on reducing variation and performing predictabilityperforming predictability

Management at this stage is better equipped to Management at this stage is better equipped to exploit the capabilities of its workforceexploit the capabilities of its workforce

Trust and confidence is established between Trust and confidence is established between employees and managersemployees and managers

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To quantify them, the performance of To quantify them, the performance of competency-based processes is measured and competency-based processes is measured and these measures are used to establish processes these measures are used to establish processes performance baselineperformance baseline

The environment now becomes more predictable The environment now becomes more predictable and the organization can make better decisions and the organization can make better decisions about tradeoffs involving workforce capability or about tradeoffs involving workforce capability or processes performance issuesprocesses performance issues

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The Optimizing Level – Maturity The Optimizing Level – Maturity Level 5Level 5

Key focus at this level is continual improvement Key focus at this level is continual improvement in the capabilities of individuals and workgroupsin the capabilities of individuals and workgroups

Development of further improvement plansDevelopment of further improvement plans Individuals are encouraged and guided to Individuals are encouraged and guided to

continuously analyze their performances and continuously analyze their performances and make the desired improvementsmake the desired improvements

Individuals level improvements are aligned with Individuals level improvements are aligned with the operating process of workgroups and their the operating process of workgroups and their unitsunits

Mentors and coaches guide improvements at the Mentors and coaches guide improvements at the level of individual and workgroup levelslevel of individual and workgroup levels

This results into a culture of performance This results into a culture of performance excellence that takes roots into the systemexcellence that takes roots into the system

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Indian ExperiencesIndian Experiences

PCMM develop a sense of responsibility and PCMM develop a sense of responsibility and ownership of results among employees and help ownership of results among employees and help them realize their stake in the organizational them realize their stake in the organizational performanceperformance

The primary reason behind Indian companies The primary reason behind Indian companies adopting it is the belief of having a highly skilled adopting it is the belief of having a highly skilled and talented workforce, which is the greatest and talented workforce, which is the greatest assetasset

The retention and motivation and development of The retention and motivation and development of employees were major challenges for Indian firms employees were major challenges for Indian firms which is addressed by PCMMwhich is addressed by PCMM

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TCSTCS

World’s first organization to attain level 4 World’s first organization to attain level 4 of PCMMof PCMM

In August, 2001, the companies four In August, 2001, the companies four centers at Gurgoan, Noida, Kolkatta and centers at Gurgoan, Noida, Kolkatta and Chennai were awarded the PCMM level 4 Chennai were awarded the PCMM level 4 certificationcertification

Software Engineering Institute of Carnegie Software Engineering Institute of Carnegie Mellon UniversityMellon University

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1.1. TCS looked for the initial volunteers across TCS looked for the initial volunteers across centers that could contribute to the preparationscenters that could contribute to the preparations

2.2. Idea attracted a lot of interest from various Idea attracted a lot of interest from various centerscenters

3.3. Finally, four centers could be assessed owing to Finally, four centers could be assessed owing to the bandwidth and time availability of the the bandwidth and time availability of the assessing teamassessing team

4.4. The company began standardizing the practices The company began standardizing the practices for staffing, communication work environment, for staffing, communication work environment, performance management, training and performance management, training and development and compensationdevelopment and compensation

(contd.)(contd.)

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For level 3, TCS concentrated on competency For level 3, TCS concentrated on competency analysis, by documenting competencies in the analysis, by documenting competencies in the form of knowledge, skills and attributes, each of form of knowledge, skills and attributes, each of which had well defined measurable levelswhich had well defined measurable levels

Authorized people regularly reviewed the Authorized people regularly reviewed the competencies of workforce and intranet and competencies of workforce and intranet and knowledge management systems were set in knowledge management systems were set in place for capturing and using those competencies place for capturing and using those competencies in the best possible mannerin the best possible manner

Competency development plans involving current Competency development plans involving current and strategic workforce planning, were prepared and strategic workforce planning, were prepared and senior management were assigned the and senior management were assigned the responsibilities of their implementationresponsibilities of their implementation

These plans aided in making decisions for These plans aided in making decisions for recruitment and training issuesrecruitment and training issues

(contd.)(contd.)

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Well-defined career paths with graduated career Well-defined career paths with graduated career opportunities were laid out, which were opportunities were laid out, which were periodically reviewed by the executivesperiodically reviewed by the executives

The practices ad procedures, along with the The practices ad procedures, along with the experiences were documented in procedure experiences were documented in procedure manuals, process handbooksmanuals, process handbooks

Project team meetings, newsletter, open house Project team meetings, newsletter, open house sessions, status reports etc were used to sessions, status reports etc were used to communicating the organization’s performancecommunicating the organization’s performance

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For the fourth level of predictability and For the fourth level of predictability and competency development, the organization has competency development, the organization has various practices involving competency various practices involving competency integration, empowered work groups, quantitative integration, empowered work groups, quantitative performance management and organizational performance management and organizational capability management etc.capability management etc.

The organization defined quality policy and used The organization defined quality policy and used various methods like TCS website, cubicle various methods like TCS website, cubicle distribution docs, emailsdistribution docs, emails

Practices like PAL, eKMS, reuse artifacts etc helped Practices like PAL, eKMS, reuse artifacts etc helped in capturing and developing their competency in capturing and developing their competency based assetsbased assets

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Critical competencies were identified and Critical competencies were identified and quantitative models of performance were quantitative models of performance were developed in basis of trend charts, metric trend developed in basis of trend charts, metric trend analysis reports, causal trend analysis etcanalysis reports, causal trend analysis etc

Mentoring was promoted to get the plans Mentoring was promoted to get the plans implemented efficientlyimplemented efficiently

After achieving level 4 certification, it attained After achieving level 4 certification, it attained the Level-5 certification in September 2004the Level-5 certification in September 2004

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Wipro Technologies Wipro Technologies First organization to achieve PCMM level 5-First organization to achieve PCMM level 5-

certification in December 2001certification in December 2001 Decision of PCMM taken in an internal meeting when Decision of PCMM taken in an internal meeting when

the company realized the possibility of becoming a the company realized the possibility of becoming a ‘HR No.1’‘HR No.1’

Various innovative initiatives like creating a Various innovative initiatives like creating a ‘competency dictionary, conducting gap analysis of ‘competency dictionary, conducting gap analysis of HR practices and implementing 360 degree feedbackHR practices and implementing 360 degree feedback

Initiative of PCMM is aimed at building ‘people Initiative of PCMM is aimed at building ‘people leaders’leaders’

Well-structured induction/training programs, e-Well-structured induction/training programs, e-learning initiatives and ‘training on demand’ learning initiatives and ‘training on demand’ initiatives were floated across the organization to initiatives were floated across the organization to take care of the training needs of employeestake care of the training needs of employees(contd.)(contd.)

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These steps made the company eligible for the These steps made the company eligible for the second maturity levelsecond maturity level

A well-structured career path designing, A well-structured career path designing, opportunity for shifting to either functional or opportunity for shifting to either functional or technical specialization, Employee perception technical specialization, Employee perception surveys practices were taken up and aligned with surveys practices were taken up and aligned with organization’s strategic objectivesorganization’s strategic objectives

Hence attained the PCMM maturity level 3-Hence attained the PCMM maturity level 3-certificationcertification

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Focus to key process areas of level 4Focus to key process areas of level 4 Focus on mentoring leadership qualities in Focus on mentoring leadership qualities in

employees and empowering them to take employees and empowering them to take decisions, which helped in capability decisions, which helped in capability managementmanagement

Wipro Leaders Program with various options like Wipro Leaders Program with various options like Entry Leaders Program, Business Leaders Entry Leaders Program, Business Leaders Program and Strategic Leaders Program were Program and Strategic Leaders Program were launched to enable employees to face challenges launched to enable employees to face challenges in their career pathin their career path

Training, coaching, exposure, delegation of Training, coaching, exposure, delegation of authority, counseling and value certification etc. authority, counseling and value certification etc. were initiated to groom employeeswere initiated to groom employees

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PCMM, level 5, PCMM, level 5, Streamlining manpower planning and HR policies Streamlining manpower planning and HR policies

and committed 5 percent of overall manpower and committed 5 percent of overall manpower cost toward employee trainingcost toward employee training

Gaps were identified using gap analysisGaps were identified using gap analysis Assessment team consisting of 7 line managers, 3 Assessment team consisting of 7 line managers, 3

HR staff and 2 quality staffHR staff and 2 quality staff Over 100 employees worked for a period of two Over 100 employees worked for a period of two

years fo fulfill the requirements of achieving years fo fulfill the requirements of achieving highest level of PCMM certificationhighest level of PCMM certification

December, 2001, achieved the PCMM level 5 - December, 2001, achieved the PCMM level 5 - certificationcertification

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Underlying principles of Underlying principles of PCMMPCMM

1.1. In mature organizations, talent pool capability is In mature organizations, talent pool capability is directly related to business performancedirectly related to business performance

2.2. Talent pool capability is a competitive issue and a Talent pool capability is a competitive issue and a source of strategic advantagesource of strategic advantage

3.3. Talent capability must be identified in relation to Talent capability must be identified in relation to the organization’s strategic business objectivesthe organization’s strategic business objectives

4.4. Knowledge-intense work shifts the focus from job Knowledge-intense work shifts the focus from job elements to people competencieselements to people competencies

5.5. Capability can be measure and improved at Capability can be measure and improved at multiple levels, including individuals, workgroups, multiple levels, including individuals, workgroups, people competencies, and the organizationpeople competencies, and the organization

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6. 6. An organization should invest in improving the An organization should invest in improving the capability of those people competencies that are capability of those people competencies that are critical to its core competency as a businesscritical to its core competency as a business

7. 7. Operational management is responsible for the Operational management is responsible for the capability of the talent poolcapability of the talent pool

8. The improvement of talent pool capability can be 8. The improvement of talent pool capability can be pursued as a process composed from proven pursued as a process composed from proven practices and procedurespractices and procedures

9. 9. The organization is responsible for providing The organization is responsible for providing competency and career improvement competency and career improvement opportunities, while individuals are responsible for opportunities, while individuals are responsible for taking advantage of themtaking advantage of them

10.Since technologies and organizational forms 10.Since technologies and organizational forms evolve rapidly, organization must continually evolve evolve rapidly, organization must continually evolve their people practices and develop new people their people practices and develop new people competenciescompetencies