because people make IT work

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because people make IT work
Leading the Agile Organization
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our discussion

• Current Environment
• Recruitment Retention
• Employee Lifecycle Value
• Competencies/Career Development
• Performance Management
• Reward

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leading the agile organization
Agile The ability to move quickly and easily
nimble. Websters Dictionary
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drivers of IT professional evolution
e-business
new technology
strategic role of IT
ERP
scarcity of resources
resource demands
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its time to rethink IT
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the employee lifecycle of the new breed IT
professional
Risk

• Multiple companies
• Start-ups
• Multiple positions
• Short lifecycle
• High Risk
• High Payoff

• 4-6 companies
• Tenure of 4-5 years
• Multiple positions
• Some Risk
• Increased Payoff

• 1 company
• 30 Years
• Few positions
• Low Risk
• Low Payoff

Payoff
Future
Current
Before
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the evolution of the work place
dot coms - 70 hour week high risk / high
payoff fun culture
dot com in a Bricks Mortar 50-55 hour
week medium risk / upside dual culture best of
both worlds
Spin-off
Bricks Mortar - 45 hour week low risk / low
payoff protocols in place
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length of recruitment
Database Administrator (4.4 Months)
Network Architect (4.2
Months)
Intranet Web Architect (4.0
Months)
Network Engineer (3.8 Months)
e-Commerce Manager (3.7 Months)
e-Commerce Analyst (3.7 Months)
IT Business Planning Manager (3.6 Months)
Manager Client Technologies (3.6 Months)
Web Application Programmer (3.6 Months)
Webmaster (3.5 Months)
Web Systems Administrator (3.4 Months)
Project Manager (3.3 Months)
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replacing IT professionals

• Cost of Turnover Approaching 100 to 250 Of
  Departing Salary
• Recruiter (25 - 30 of salary)
• Cost of temporary contractor
• Cost of managers interview time and
  administration
• Salary differential of 15 - 45
• Sign on bonus
• New employee training
• Productivity loss of new employee - 50 for 3-6
  months
• Interview and relocation expenses

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whats hot in IT

• The hottest jobs are
• DBA
• Network Architect
• Internet/Web Architect
• Network Engineer
• Manager, Electronic Commerce
• Electronic Commerce Analyst

people3, 2000 IT Market Compensation Study
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emerging roles attractive to IT professionals

• Roles include the application of Internet
  technical skills, with unique combinations of
  business knowledge and general technical skill
• Webmaster
• Web Security Engineer
• Web Architect
• Web Author
• Web Systems Administrator
• Web Developer

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recruitment retention

• Separate Strategies
• Success factors are different
• Recruitment - create value
• proposition by segments
• Retention - strategy by drivers of
• turnover

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recruitmenttop five approaches

• internal resources
• use of search firms
• promotions
• employee referrals
• contractor conversions

Source 2000 people3 IT Market Compensation Study
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recruitmenteffective strategies

• use of focused recruiters
• creating alumni groups
• sponsorship of user groups and professional
  associations
• alliances with colleges and universities
• deployment of a sourcing strategy

Source 2000 people3 IT Market Compensation Study
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retentionwhy they leave?

• market pay
• career development
• fit with job
• work culture
• invigorating technical environment
• leadership vision for IT
• recognition acknowledgement

The current IT market is moving 1 to 1.5 times
faster than the rest of the market.
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retentioneffective strategies

• career development
• challenging technical environment
• use of new technologies
• strong IT leadership
• people oriented managers
• support of training

Source 2000 people3 IT Market Compensation Study
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sourcing strategies

• Need to build a people plan
• What Roles
• How Many
• Competencies
• Demographics
• Experience Level
• Includes Current and Future Roles

• Segmentation
• Average Time to Fill
• Cost
• Reskilling

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sourcing strategies
Retain
ESW
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determine employee lifecycle value (ELV)

• ELV The total value (knowledge, ideas,
• productivity, leadership) a company receives from
  the
• employee during their lifecycle.

Knowledge Ideas Productivity Leadership
ELV
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stages of employee lifecycle
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what is true market rate?

• Systems Consultant 1999 2000
• Corporate data 74,800 82,000
• Recruitment firm 101,000 102,000
• ELV 90,000 95,000
• 9.7 increase between 1999 and 2000 (Corporate)
• 1 increase between 1999 and 2000 (Recruitment)
• 8.7 gap between Corporate and Recruitment

2000 people3 IT Market Compensation Study
Subjective Data
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each of us is a contractor...
Make your own deal Broker Environment External
Networking Individual Unit
Bricks Mortar Secure Employment Pension Hierarch
ical Parent Company
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the individual broker
Who We Are

• Skeptical of corporations
• Loyalty is diminished
• Work/Life issues of great importance

• Work less central to our identity
• WIIFM is the focus
• Theatrical

What We Want

• Ability to experiment
• Being connected
• Employment contracts

• Control our own fate
• Strategic influence
• Work with diverse thinkers
• Big fish in small pond

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manage to individualism

• Recruitment Strategy by Demographics
• Offer Proposition by Role, Skill Level,
  Technology, and Market
• Retain by Individualism

Demographics
Role, Skill, Technology, Market
Individualism
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individual competencies
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agile organizational competencies
competency
know-how
strategies
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agile organizational competencies
competency
know-how
strategies
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competencies of the new breed IT professional
Technical Competencies
Business Competencies
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behavioral competencies of the new breed IT
professional
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match competencies of people to teams
Team Types

• Strategic
• multiple plans / multiple contingencies
• scope management
• strategic alliances

• Implementation
• client relationship
• management
• release and re-release
• project management

• Operational
• cost center function
• outsourcing
• process management

• Environmental
• being first and buying first
• early adopter participation
• competitive analysis

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objectives of career development
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evolution of career paths
Now
Then
The Road to Management
One Way Ticket
An Even Game
Job Family Growth
Corporate Path
Application Development
Project Management
Managerial
Managerial
Technical
Technical
Internet
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career development program
Each Job Family has the following five components
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performance management

• Performance Management addresses 2 elements
• Goals Objectives - the WHAT was done to
• meet the needs of the business, the business
• element. In the area of salary treatment,
  this
• element affects bonus
• Skills Competencies - the HOW activities
• are done, the professional element. In the
  area of
• salary treatment, this element affects base
  salary

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performance management
Career Development
Performance Management
Competencies Skills identified to develop
Goals Objectives
Feedback Evaluation
Feedback Evaluation (Appraisal)
Professional Development
Reward
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performance management
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compensation discoveries

• 2000 IT Market Compensation Study
• Geography -
• Northeast and Western regions pay a 5 overall
  premium on salaries,as compared to the national
  average
• North Central, Southeast, and South Central pay
  3-8 below the national average

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compensation discoveries

• 2000 IT Market Compensation Study
• Industries -
• High tech provides the highest total cash
  compensation, with increased reliance on variable
  pay and average base salary
• Manufacturing pays 5 above average for all jobs
  (total compensation)
• Public-Non-Profit pay the lowest with
• 8-9 below the national average

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compensation discoveries

• 2000 IT Market Compensation Study
• Turnover -
• Firms
• with more IT employees (large IT shops) have
  lower turnover
• that outsource have higher levels of turnover
• with more vacant positions experience higher
  turnover

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compensation discoveries

• 2000 IT Market Compensation Study
• Reward -
• Firms with
• more IT employees pay significantly higher
  salaries
• higher revenues pay higher salaries
• more IT vacancies do not pay lower salaries on
  average compared with those with a lower number
  of vacancies

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compensation discoveries

• 2000 IT Market Compensation Study
• Reward -
• Companies who are in an aggressive hiring mode
  pay lower salaries. It is suggested that salary
  levels are not the key drivers of hiring success
• Firms experiencing high rates of turnover have
  higher salary levels on average. This suggests
  that firms responding to turnover with pay have
  limited success

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questions answers
Mastering the art of IT human capital