This document discusses defining and addressing an organization's critical skills gap. It highlights that skills assessments can improve employee performance, quality of hire, productivity, and engagement. The document also outlines IBM's talent frameworks library which provides pre-defined competencies and job profiles to integrate talent management applications and drive a skills-based culture. It emphasizes that successful organizations rely on an integrated talent infrastructure with clear competencies and job profiles.

1. © Copyright IBM Corporation 20151
What is Your Critical Skills Gap?
Get beyond feeling it, to closing it.
Gordon Ritchie
ritchieg@us.ibm.com

2. © Copyright IBM Corporation 20152
Objectives for This Session:
• Review the importance and relevance of the skills gap,
and why that matters.
• Approaches to defining and acting on the skills gap
• How IBM can help you accelerate your ability to define
and act on addressing your skills gap.

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The Skills Gap and why it matters

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Talent Gaps Concern the C-Suite
Source: 2014 IBM CHRO study: New Expectations for a
New Era: CHRO insights from the Global C-Suite Study
% of CHROs
• 66% anticipate losing business to
competitors
• 64% fear a loss of revenue
• 53% anticipate delays in innovation
• 59% face lower customer satisfaction
87%
80%
68%
65%
60%
Talent Development
Employee Engagement
Talent Retention
Workforce Productivity
Sourcing & Recruiting
CHROs find developing talent to be their
largest workforce challenge
CEOs fear gaps in their current talent will
directly impact customer success:
Source: Accenture 2013 Skills and
Employment Trends Survey

5. © Copyright IBM Corporation 20155
Skill Assessments Drive Results
-12%
-10%
14%
17%
18%
7%
2%
8%
-20% -10% 0% 10% 20%
Not Using
Assessments
Employee performance
Quality of hire
Employee productivity
Overall turnover
Recruiting costs
Source: Aberdeen 2009 Study; Assessments in Talent Management

6. © Copyright IBM Corporation 20156
Engagement Matters
• More than 50% of Millennials, and Boomers do not understand their
managers’ expectations of them as an employee. IBM Institute of Business Value, “Myths,
Exaggerations and Uncomfortable Truths “
• Companies experience a 21% and 22% increase in productivity and
profitability when employees score in the top quartile for engagement.- Gallup
• SHRM found through their HR Job Satisfactions surveys in 2012 and 2013 that
the #1 employee engagement issue, above pay and benefits. Is
 Being recognized for using their skills

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How to Approach the Skills Gap

8. © Copyright IBM Corporation 20158
Skills are the Foundational Layer of Talent Management
Comprehensive OD Experience & Established Methodology
Comprehensive Job Models & Framework
Job Data Competency Data
Talent Management Workforce application
Compensation Performance Succession
Planning
Assessment
& Analytics
Learning &
Development

9. © Copyright IBM Corporation 20159
Determine Where Skills FitSpecificityoftheFramework
Defines culture
Reinforces strategy
Broadly applied training and
communicate
…does not define job requirements
or operational specifics
Defines job skills and expectation to goals
Enables assessment and insights
Supports development and improvement
Empowers TM Technology
…challenging to develop, manage and
update
Types of Models
Low
High

10. © Copyright IBM Corporation 201510
Global Insurance Provider
Company Background: A global insurance provider with over 60,000
employees in 170 countries.
Objectives: Drive shareholder value through maximizing contribution
of its employees. Shared expectations and unify best practices.
 A global language around jobs and competencies
 Global job requirements based on strategy
 Employees assigned to global jobs
 Global assessment of competency levels
 Job and competency based training
 A talent and learning culture

11. © Copyright IBM Corporation 201511
Scope
• Function Structure
• Job Catalog of 7000 roles
• Global Jobs defined as 300
roles
Benefits
• Knowing where people sit
and what they do
• Headcount Reporting by
Function
How They Got There
Scope
• Build Job Profiles with
competencies
• Mapping Profiles to
employees
Benefits
• Clarity on roles and
requirements
• Detailed headcount
reporting
Scope
• Build a system and
process for the
Competency
Assessment covering
50’000 employees
Benefits
• Development planning
• Identify training needs
• Optimize L&D budget
• Measure competency
gaps
Scope
• Business Academies
• Data Warehouse
• Quality improvements
• Integration into HR
Benefits
• Learning linked to jobs and
competencies
• Automated reporting
• Career paths
• Joined up HR
processes for
managers
Create a
structure
& job catalogue
Global Job
Profile
Mapping
Competency
Assessment
On going
Improvement

12. © Copyright IBM Corporation 201512
Group
Functions
929 No Segment
400
GI
3'036
GL
538
Group
Operations
830
Basic
20%
Intermediate
41%
Advanced
26%
Expert
13%
Job Proficiency Levels
Headcount by Segment/Function a.o.
Competency Gaps
Group
Functions
929 No Segment
400
GI
3'036
GL
538
Group
Operations
830
Basic
20%
Intermediate
41%
Advanced
26%
Expert
13%
Job Proficiency Levels
Headcount by Segment/Function a.o.
Competency Gaps
below equal above
Knowledge of Claims
Claims Investigation
Service Excellence
Fraud Management
Executive Support Through Insight
©Zurich
 A global language around jobs and competencies
 Global job requirements based on strategy
 Employees assigned to global jobs
 Global assessment of competency levels
 Job and competency based training
 A talent and learning culture

13. © Copyright IBM Corporation 201513
Defining and Acting on the Skills Gap

14. © Copyright IBM Corporation 201514
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Manual
process
Budget
Constraints
Too difficult to
define
competencies
Too many
jobs
Lack of
executive
support
• Core
• Leadership
• Functional
• Technical
• Behavioural
• Got them from KornFery/Lominger…
• Too Time consuming and hard to do for every role
• No impact, not relevant.
• Tried it, Tried it again,….
• Done them, someone else did some too
• Too HR
Questions and Confusion Excuses
• Traits
• CARS
• BARS
• Proficiency levels
• Assessment
WHAT PREVENTS IMPLEMENTATION OF A SKILLS CULTURE
ACROSS AN ORGANIZATION?
As soon as I say “competencies,”…

15. © Copyright IBM Corporation 201515
The IBM Talent Frameworks Library

16. © Copyright IBM Corporation 201516
The IBM Talent Frameworks Library:
Integrate your talent management applications
Process How it helps What you need
Attracting
candidates
Set expectations of who will be successful in
the job beyond a job description
Demonstrable behaviours of what you expect
Hiring
Decisions
Smarter hiring decisions based on capability to
do the job
Interview questions tied to the competency
behaviours required
Onboarding Improve chance of success and retention with
accelerated time to productivity
Demonstrable expectations of what good looks like
Managing Support managers development discussions
with tools to improve trust and impact.
Skill focused coaching tips, SMART goals, and
extended expectations for growth
Engagement Provide clear view of portable/mobile skills to
engage the engageable.
Reusable competencies across roles, levels and
functions to provide skills based career matrix.
Performance
Management
Provide job specific performance criteria for
evaluation and contribution.
Job specific competencies and expected levels of
demonstrable behaviour
Development Drive up learning as its easier to find content in
your LMS
Learning catalogue mapped to competencies
Compensation
Planning
Understand the jobs you are matching beyond
just the salary survey job title.
Match jobs based on skills, tied to excellence as
performance to pay.

17. © Copyright IBM Corporation 201517
Build vs Buy: Time to impact
 Develop and use quickly and update over time.
 Focus on buy-in and change management processes.
 Make sure you get to the applications; don’t get stuck in model development
 Get the “big things right”; “don’t
dwell on the small stuff”.
 Apply existing materials and best
practices in developing a rapid
draft
 Focus on the overall architecture
 Key success criteria and themes.
 Position models as
prototypes for learning
how to change behaviors
(vs. a perfect output
image).
Application, Integration
& Iteration
Launch &
Communication
ImplementationJob Skills Library Customization
80% of the effortRecommended Approach
20% of the effort
Typical Competency Design and Development
Application,
Integration
& Iteration
Launch &
Communication
Implementation
20% of the effort
(if able to move out of
development stage)
Typical Approach 80% of the effort

18. © Copyright IBM Corporation 201518
Skills Are The Language Of An Integrated
Talent Management Approach

19. © Copyright IBM Corporation 201519
Guided analytics reveals insights and opportunities in the data:
• Predefined questions based on knowledge of your data give you a head start!
• Additional relationships suggested as your data and questions are learned
• Deep analytic skills not required – but the results are displayed.
Thinking Ahead…Segmenting Your Talent Data

20. © Copyright IBM Corporation 201520
Big Data: IBM Talent Insights – by Watson
 Answer operational talent questions faster
 Analysis made easier and more accessible
 Connecting People Processes to Business impact
 Discover new patterns and insights from your Talent Suite data

21. © Copyright IBM Corporation 201521
IBM Talent Frameworks
Invest wisely in
your employees
Connect
employees to the
information they
need
Attract the very best
talent and get them
productive
Listen to the voice
of your
organization and
engage the
workforce
Make smarter
decisions with
big data &
insights
Skills Add Clarity And Precision
“Conclusion: The most successful organizations rely on a talent
infrastructure that encompasses the right competencies and
job profiles as a basis for integration.”
Integrated Talent Management: A roadmap for success.
Bersin and Associates, 2012

22. © Copyright IBM Corporation 201522
What is your Critical Skills Gap?
Get beyond feeling it, to closing it.
Gordon Ritchie
ritchieg@us.ibm.com