Importance versus Effectiveness Gap...Closing...Slowly

I attended and presented at the Human Resource Management Institute 25-27 July. It was a great opportunity to engage with senior HR executives representing the areas of talent, diversity, learning and compensation.
It also presented the chance to validate of key findings from the IBM 2009 study I have referenced in previous blog posts.

I asked the group, using Turning Technologies audience response system (great tool to engage the audience and collect data), to rank the nine human capital challenges from the study by voting for their top three challenges.

The voting came out this way...

#1 - Defining skills, knowlegde and capabilities to execute business strategy.
#2 - Developing succession plans and career paths
#3 - Sourcing and recruiting individuals.
#3 - Retaining valued talent within the organization.

I then asked the group to rate their organizations on a 1-5 scale regarding importance and effectiveness....

1. Defining knowledge, skills and capability requirements for executing business strategy is an important need for my organization.

2. My organization is effective at defining knowledge, skills and capability requirements to execute business strategy.

Importance rated a score of 92 out of 100 and effectiveness rated 51 out of 100. This provided an Importance vs. Effectiveness gap of 41%. This compared favorably to the IBM study gap of 48%, but still a pretty big gap.

So what does it mean? For starters, I was pleasantly surprised at what was #1. While the other eight human capital challenges in the study are important, organizations will have a difficult time negating these challenges without knowing what human capital capabilities are required now and in the future.

My concerns continue that there is such a wide gap between importance and effectiveness. There could be some good reasons for it. There has been such volatility and uncertainty since the financial meltdown starting in 2008, that attempting to identify skills, knowledge and capabilities was a bridge too far. Many organizations were making strategic decisions on a week-to-week and month-to-month basis and couldn't focus much more strategic than that. That kind of environment is not good for anything other than reacting.

The message for Human Capital Management (HCM) leaders...now is the time to position your organizations for future success. A number of HCM leaders of prominent organizations are successful at defining the workforce capabilities needed for their future strategy...IBM, Cisco, and Google are a few. If you don't spend time with your customers understanding where they want to drive the business and culture, you have a difficult road ahead. If, on the other hand, you have a sound approach in place to work with organizational leadership to define current and future needs...you are ready to play an important role for your organization and our profession.

Cheers,
Keith

Twitter: JKeithDunbar
Linkedin: http://www.linkedin.com/in/jkeithdunbar
DNA of Human Capital: http://dna-of-humancapital.blogspot.com/

Skunk Works...Innovating from the Outside-In...

My team went through a major change initiative starting in 2006 that involved merging with ten organizations with geographic and functional responsibilities. While each conducted the same mission by collecting, analyzing and disseminating information to support leadership decision advantage, in many respects...each felt it was unique and did their mission differently. Each had learning functions that ranged in size of 1 to over 40...so this was the environment and scene my team faced in building a global learning enterprise that leveraged my organization's learning capabilities, while integrating their capabilities.

What my team came to find out that in order to integrate effectively and efficiently...we would have to change from the "Outside-In." What this meant is that in many respects, while trying to integrate and align these various learning capabilities, changing how we conducted business at the Defense Intelligence Agency (DIA) would be possible by changing how we operated with our new customers. For example, within DIA's schoolhouses we used different course evaluations with some standard questions, but in large part no common standards. One of the first initiatives with our learning integration efforts was to develop and accept a common set of evaluation questions. This move precipitated a similar discussion internally.

We accomplished this and other key initiatives by treating our effort as a Skunk Works...Made famous at the height of the Cold War, Lockheed Martin created a group that revolutionized and transformed airborne reconnaissance.

Our internal Skunk Works supported change management during the integration and alignment period. By leveraging a world-class best practice in defining a common set of skills, knowledge and capabilities for all organizations...we were able to integrate learning and align existing solutions at a quicker pace. It allowed our new customers to see that while their organizations had different responsibilities, the challenges faced, the work they did and the type of human capital capabilities needed were very similar.

The lesson for Human Capital Management (HCM) leaders, creating a team within your HCM organization that has the green light to try creative and disruptive new approaches can enable change across the HCM organization. That can lead to new efficiencies and effectiveness in meeting customer needs and in our case...accelerating major change initiatives...from the Outside-In.

Cheers,
Keith

Is There a Positive in BP Crisis?

Greetings,

So great news that BP has finally stopped the unrestricted flow of oil into the Gulf of Mexico. It took a long time and as an organization they have suffered greatly and in many people's eyes deservedly so.

As an example, I looked at a total of 25 blogs written in Harvard Business Review about a number of angles on the BP crisis. The most positive...and that is relative speaking of the BP oil disaster...was by Vineet Nayar titled "I'm Thinking About BP's Employees." Most however focused on some aspect of BP brand, culture and of course failure of leadership.

But I wonder if a silver lining can't be found for the future of BP or other organizations able to get BP talent in the future...

In many organizations, we attempt to replicate the conditions of the organization in our leadership development programs. We do this through action learning activities that help participants practice what they learn through business projects or solving organizational challenges. While these things are of immense value to the organization...it is difficult in a classroom setting to replicate crisis. The kind of crisis that comes in a world ripe with volatility, uncertainty, complexity, and ambiguity...the VUCA world.

The environment that new leaders in BP are growing up in now will pay dividends for them in the future. These BP leaders will be able to take advantage of volatility, make decisions under conditions of uncertainty, create clarity from complexity and adapt to ambiguity. All priceless traits for leaders of the future.

It would be extremely easy to just focus on the negative of the situation, but as a strategic human capital management leader...I prefer to focus on the positive.

Cheers,
Keith

DOCGI Leadership in a VUCA World

DOCGI Leadership in a VUCA World

In the past few weeks I have seen a number of blog posts and articles discussing different leadership attributes and their application to our current world state. All of these have one thing in common…they are intended to allow leaders to function in a world that is consumed by Volatility, Uncertainty, Complexity, and Ambiguity…a VUCA world.

Coined by the U.S. Army to define environments that forces would operate in, it allowed personnel to make sense of the world. Our Armed Forces don’t only operate in a VUCA world though. Our CEOs and Directors operate in this world daily. A world so complex and volatile, that CEOs taking part in IBM’s 2010 Global CEO Study named it “Capitalizing on Complexity.” In the study, CEOs admitted the following:

“In our past three global CEO studies, CEOs consistently said that coping with change was their most pressing challenge. In 2010, our conversations identified a new primary challenge: complexity. CEOs told us they operate in a world that is substantially more volatile, uncertain and complex. Many shared the view that incremental changes are no longer sufficient in a world that is operating in fundamentally different ways. Four primary findings arose from our conversations:

Today’s complexity is only expected to rise, and more than half of CEOs doubt their ability to manage it. Seventy-nine percent of CEOs anticipate even greater complexity ahead. However, one set of organizations — we call them “Standouts” — has turned increased complexity into financial advantage over the past five years.”

So at this point in the blog I want to use my power of engaging the reading audience and ask you whether you think your organization is operating in a VUCA world? If you don't...It would surprise me to find anyone who thinks they are not in a VUCA world now...

So if we agree that this is what is facing our organizations, what kind of leaders do we need to develop that can thrive and excel in a VUCA world? Some hints have started to come out in a number of places. Attribute areas that I consider important. I am calling it DOCGI Leadership…

Disruptive - This was written by Heather Vogel in her HR Whisperer blog titled “Aim To Misbehave.” In it she discusses the principles of Disruptive Leadership and what that can do for an organization.

"Disruptive leadership is a concept that is rapidly gaining ground in the new millennia – leaders create problems that must be solved. The solving of the problem serves as the catalyst for the organization to create change, whether that change is a new product, new service, or just a new way of doing things. When an organization has to solve a problem, it can provoke the necessary motivation to make a huge leap in innovation."

Open – Charlene Li co-author of “Groundswell” and her new book “Open Leadership” makes the case that in today’s super-connected world and the level of complexity associated with it, that leaders will have to give up need to be about relationships and a culture of sharing. Charlene Li believes the following statement about Open Leadership:

“Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals.”

Creative – The 2010 IBM Global CEO Study identified Creative leadership as a key area for leaders in the future to focus in order to overcome uncertainty and complexity.

"Creativity is often defined as the ability to bring into existence something
new or different, but CEOs elaborated. Creativity is the basis for “disruptive
innovation and continuous re-invention,” a Professional Services CEO
in the United States told us. And this requires bold, breakthrough thinking.
Leaders, they said, must be ready to upset the status quo even if it is
successful. They must be comfortable with and committed to ongoing
experimentation."

Globally Integrated –
IBM’s white paper titled “Developing Global Leadership” discusses the following perspective in developing their global leaders:

“For greater global effectiveness, decision-making authority needs to be owned and executed by those who are best positioned to make quick decisions and be responsible for outcomes.”

What Does It Mean

So what will a DOCGI Leader look and feel like? A DOCGI Leader is someone that can thrive in a VUCA world by being a risk manager and nurturing their workforce in the same environment. It is someone that is OK with failure, because the organization learns from that and creates and innovates further. A DOCGI Leader is agile and adaptable that can make decisions quickly to take advantage of shortened time lines, mobilize global teams for execution, and develop strategies that are short or long-term in nature.

The consideration in the future with Gen Ys moving into leadership positions now...is how do we develop these attributes in our future leaders? That...is a story for another time.

Cheers,
Keith

You Don't Know What You Don't Know...In This Case...We Do...

I'm a big fan of Cisco and their CEO John Chambers. In a recent Newsweek interview, he focused on "Knowing What You Don't Know" and impact on the future of leadership. His perspective, always refreshing to me, gets to heart of issue facing strategic Human Capital Management (HCM)...looking into the future at what is coming and its impact on HCM leaders to enable business and mission success.

We recently hosted an Enterprise Symposium at the Defense Intelligence Agency (DIA) focused on looking at areas of collaboration across the Defense Intelligence Enterprise. A very good friend and I were co-leads for a session titled "Developing the Workforce of the Future" where we sought to frame the 2020 workplace, challenges faced executing the mission in 2020 and attributes of both leaders and intelligence professionals needed in 2020. The session provided a great opportunity to engage participants and provide an update to the DIA Workforce of the Future white paper from 2003.

We were honored to have Karie Willyerd (Former Sun Microsystems CLO and now Future Workplace) share with the audience insights from her and Jeanne Meister's new book "The 2020 Workplace". While there were many key points and new knowledge taken away...several things stood out for me.

1. By 2020, the Generational mix at the workplace will be drastically different per the attached slide. The implications to leaders and leadership development are significant.

2. The understanding that to become an expert requires 10 years of dedication. However, knowledge is doubling every two years and in some areas every one year. Impact to you and I you ask? We can't possibly keep up with that much data. Hence our reliance on social networks will continue to grow and expand.

This gets to topic of this DNA of Human Capital blog today...The old phrase "You don't know what you don't know" is really not applicable to HCM leaders and the tsunami of the 2020 workplace, five generations in the workforce and the continued expansion of knowledge that will make expertise not nearly as important as your social network to get work done.

The task at hand for HCM leaders is to prepare their organizations for what the future is bringing. In today's challenging environment, it is difficult sometimes to look into the following week or quarter, much less at 2020. Yet, like the certainty of the tides...this new environment and workforce will inevitably come ashore like oil in the Gulf of Mexico. We will have to collectively look at this new future and determine how we position our human capital capabilities to ensure success in this environment.

For our own credibility, we will not be able to say we didn't know what we didn't know...because in this case...we did.

Cheers,
Keith

Human Capital Dominance...That is the Goal!

My Department of Defense experience has provided me depth and breadth in a number of areas over the past 25 years. One of those is the concept of Information Dominance and application to our work as Human Capital Management (HCM) Leaders. The formal definition for Information Dominance is captured in this issue paper and is located below:

"Information Dominance" - the degree of information superiority that allows the possessor to use information systems and capabilities to achieve an operational advantage in a conflict or to control the situation in operations other than war while denying those capabilities to the adversary. (Current - FM 100-6, Information Operations)

When we think to what we are trying to achieve for our organizations...strategy execution, competitive advantage, long-term growth, etc...this is applicable to our activities in HCM. What a similar definition of Human Capital Dominance would look like is below:

Human Capital Dominance - the degree of HCM and workforce analytics superiority that allows the organization leadership to use human capital capabilities to achieve an strategic or operational advantage in a competitive market or industry sector while denying those human capital capabilities to the competition.

As HCM Leaders...this is what our goal should be. Providing our companies Human Capital Dominance and Superiority. A number of challenges impact our ability to achieve this ultimate goal in positioning our organizations for future success. We discussed one last week in the defining of knowledge, skills and capability requirements to execute business strategy. Others from the study included the following:

1. Determining headcount and FTE capacity requirements by job assignments and location.
2. Sourcing and recruiting individuals.
3. Developing training strategies.
4. Retaining valued talent within the organization.
5. Evaluating workforce performance.
6. Determining strategies for reduction in force, redeployment and retraining.
7. Understand collaboration and knowledge sharing.
8. Developing succession plans and career paths.

Recent articles and studies indicate challenges are on the horizon that will impact Human Capital Dominance at our organizations.

A recent i4cp survey of senior executives indicates "Nearly 50% of business executives say that the pace of change is becoming hard or impossible to predict...and it appears many companies will suffer as change inevitably happens: almost 20 percent characterize themselves as poor or very poor at handling such initiatives."

This has a direct impact on at least three of the human capital challenges addressed above. Particularly collaboration and knowledge sharing. The most agile and adaptable organizations now and in the future know that one person like the CEO must depend of a collaborative network of leaders to embrace and execute in the complex world we exist in now. This then impacts retention of valued talent and succession planning to provide organizational leadership the right human capital capabilities to succeed.

A recent survey by Execunet also identifies items for consideration. In its annual 2010 Executive Job Market Intelligence Report identified the following trends among senior executives.

• 45% of corporate leaders considered or prepared to voluntarily leave their organizations in 2009
• 80% of HR executives are concerned about retaining executive talent in the coming year
• 46% of CEOs claim their résumés are ready to send to a recruiter right now


What these informative surveys tell us is that Human Capital Dominance, while the goal, is a challenge to achieve. Those organizations that can negate their importance vs. effectiveness gaps at executing these key human capital challenges and can establish strong workforce analytics capabilities (human capital information superiority) will have a greater opportunity to achieve Human Capital Dominance. These organizations will enjoy greater alignment of HC to strategy, greater agility and adaptability in executing strategy, and a greater competitive advantage...no matter what market or sector the organization decides to engage.

A storm is brewing...as the economy improves, HCM Leaders will get opportunities to really show what our profession's contribution is to the organizations we serve. Doing our best to provide Human Capital Dominance will speak volumes!

Cheers,
Keith

The Holy Grail...Human Capital Development Aligned to Strategy...

For a long time our profession seems to have had an identity crisis. We wanted to be strategic business partners but we couldn't get there. IBM's 2009 report titled "Getting Smart About Your Workforce: Why Analytics Matter," showed key strategic human capital (HC) challenges that Human Capital Management (HCM) leaders face and their perception of importance vs. effectiveness in overcoming them to impact business results. One of those areas with a significant gap in importance vs. effectiveness (48% in last weeks graphic) was the definition of "knowledge, skills and capability requirements to execute business strategy."

In my honest opinion, the HCM leader's capability to act on this particular human capital challenge is more important than other importance-effectiveness gaps the report identified. Why? Because as HCM leaders...if we can't define organizational capability requirements (That is really what our customers want...not HR speak like knowledge, skills and competencies...we can do that internally) to execute the business strategy...we are in essence lost. No "seat at the table" is forthcoming. So we have to execute on this one human capital challenge gap with the agility and adaptability the organization requires to function in the global complexity. And we have to do it...flawlessly.

At the Defense Intelligence Agency, we faced a similar challenge as DIA merged with ten worldwide Combatant Command Directorates of Intelligence. Treating the merger as a major change management project as Combatant Command civilian employees were integrated within DIA, the DIA learning team decided that for a successful merger, we needed a simple approach. The approach was to define the individual Combatant Command capabilities that would allow the team to look at common, core, and critical capability requirements across the Combatant Commands.

Pioneered by Dr. Reza Sisakhti of Productivity Dynamics and used by successful companies like IBM, Cisco, and HP, we were able to focus on three mission critical job roles at the Combatant Commands to drive our efforts...Intelligence Analysts, Collection Managers and Intelligence Planners.

The process involved two simple steps...

1. Engage strategic leaders and determine each Combatant Command's mission, strategy, strategic initiatives in place or planned, and the challenges faced in executing the strategy.
2. Identify top performers in the organization. These top performers are top performers because they are able to overcome challenges and achieve results. What behaviors make them successful at executing the strategy and overcoming challenges?

With this data, the team was able to start alignment of available learning at DIA and at the Combatant Commands in direct support of mission strategy execution. From a change management perspective, ten Combatant Commands with different functional and geographic responsibilities were able to see the knowledge and skills necessary to execute their mission strategies for the three identified roles were the same. The only difference was the application of these human capital capabilities in their respective environments.

The decision to take this simple, but proven approach in a massive change effort was risky. But the payoff was a group of global learning professionals at the Combatant Commands and DIA that are considered the vanguards of enterprise integration by senior leaders within the Defense Intelligence Enterprise. It has ushered in a new level of collaboration and innovation that led to the team's recognition in 2009 by Chief Learning Officer Magazine with a Learning-in-Practice Gold award in Division I for Global Learning.

So the message this week HCM leaders...focus on defining knowledge, skills and capability requirements to execute business strategy and take a risk...it could lead to a huge payoff for your organization and HCM.