PEOPLES CAPABILITY MATURING MODEL(P-CMM)

What do you mean by people capability ?....

Introduction

An organization is nothing but a collective group of people working together in the same direction, towards the same goal: that is to achieve organizations' goals. It is the workforce, the human resource which is the core crux of an organization and is of utmost importance to the organization. To motivate & continuous improvement of the workforce, an organization must perceive its people as assets rather than as expense items.

The Ecology of Failed Systems in organisation

Lack of measures & defined processes

Work overloads

Siloed functional processes

Inconsistent materials Cascading rework Unintegrated best practices

4

Unmanaged commitments

Inconsistent procedures for identical tasks

CMM model

The CMM were established in the early 1990s & quickly gained acceptance in the infotech industry. In CMM, there are 5 levels of maturity & certain key process are for each level.

By the late 1990s, of the 23 co. assessed at level 5 worldwide , they are TCS, HCL, IBM, Wipro, Motorola, Satyam etc..

Key process area in CMM

MATURITY LEVEL 1- Initial 2- Repeatable KEY PROCESS AREA workforce activities is inconsistent to eliminate problems that keep people from being able to perform their work responsibilities effectively to establish a foundation of workforce practices

3- Defined

to adapt the workforce to the nature of the organization's business and to identify the core competences required to perform it.
to create quantitative methods for measuring the core competences, their growth and the alignment of performance across the levels of the organization. team building and mentoring. continuous focus on the improvement Innovative practices, technologies and tools are

4- Managed

5- Optimizing

However, some analysts argued that CMM focused too much on the process or technology & it failed to take the people into consideration. Taking these drawbacks into consideration, SEI developed People CMM (PCMM). One of the major aims of PCMM was to help organization integrate workforce practices into a system & facilitate mgnt involvement in their deployment. The PCMM concepts were 1st published in1995, & companies such as Ericsson & Boeing soon adopted them to guide

Overview of the PCMM

The People Capability Maturity Model (P-CMM) focuses on continuously developing the human assets of an organization.

It describes an evolutionary improvement path from ad hoc, inconsistency performed practices, to mature, disciplined & continuously improving development of knowledge, skill, & motivation of the workforce that enhances strategic business performance.

So the objective of the CMM is to distinguish mature processes from immature or ad hoc processes.

The components of the P-CMM structure

Maturity levels : A maturity level is a welldefined evolutionary plateau that establishes a level of capacity for improving workforce capability.
Workforce capability: Workforce capability describes the level of knowledge and skills in the organization's workforce and the ability of the workforce to apply them to improving business performance. Key process areas : Each key process area contains a set of goals that, when satisfied, establish that key process area's ability to affect workforce capability.

Goals : The extent to which the goals have been accomplished is an indicator of how much capability the organization has established at that maturity level.

Common features : The key practices of each key process area are divided into five clusters called common features. These five types of common features include: o Commitment to perform o Ability to perform o Activities performed o Measurement and analysis o Verifying implementation.
Key practices : The key practices describe the elements of infrastructure and workforce practice that contribute most to the effective implementation and institutionalization of their key process area.

Organizatinal capabilities

Maturity levels

Process areas

Process area Goals

Practices

Implementation

Institutionalization

The PCMM Five Maturity Levels

Level 5 Optimizing
Change management

Level 4 Predictable
Level 3 Standardized

Capability management

Business line management

Level 2 Managed
Level 1 Initial

Work unit management

Inconsistent management

How the CPMM Works

Level 5
Optimized Implement continual proactive improvements to achieve business targets Manage process and results quantitatively and exploit benefits of standardization Capable processes Perpetual innovation Change management Predictable results Reuse/knowledge mgt. Reduced variation Productivity growth Effective automation Economies of scale

Level 4
Predictable

Develop standard processes, measures, and training for Standardized product & service offerings

Level 3

Level 2
Managed

Build disciplined work unit management to stabilize work and control commitments Motivate people to overcome problems and just get the job done

Reduced rework Repeatable practices Satisfied schedules

Mistakes, bottlenecks Ad hoc methods Hero worship

Level 1
Initial

Level 1 Initial Organizations

Undisciplined Few repeatable processes, often sacrificed under pressure
People rely on personal methods for accomplishing work Little preparation for managing a work unit Few measures for analyzing effectiveness of practices No foundation or commitment for improvement

Individualistic

Inconsistent

Inefficient

Stagnant

Level 2 Managed Organizations

Committed Executives commit organization to improving operations Managers take responsibility for work unit operations & performance Commitments are balanced with resources Work units use local procedures that have proven effective Work units are capable of meeting their commitments
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Proactive

Managed

Repeatable

Responsible

Level 3 Standardized Organizations

Organizational Integrate end-to-end business processes across siloed functions Establish standard processes from best practices in work units Standard processes tailored for best use in different circumstances

Integrated

Adaptable

Leveraged

Common measures and processes promote organizational learning

Organizational culture emerges from common practices
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Professional

Level 4 Predictable Organizations

Quantitative Process variation, performance, and capability understood quantitatively Variation reduced through reuse, mentoring, & statistical mgt.

Stable

Empowered

Process data empowers staff to manage their own work

Functional processes reengineered as roles in business processes

Multi-functional

Predictable

Outcomes predictable from subprocess capability & performance

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Level 5 Optimizing Organizations

Proactive Improvements planned to achieve business strategies & objectives Improvements evaluated and deployed using orderly methods

Systematic

Continual

Individuals and workgroups continuously improve capability

Performance aligned across the organization Defects and problem causes systematically eliminated
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Aligned

Preventative

Transforming the Culture

Level 3 Level 5
Proactive Improvements, Agile culture

Organization

Organization develops standard processes, Engineering culture

Level 2

Level 4
End-to-end process managed statistically, Precision culture

Trust

Work unit

Project mgrs. establish discipline & stability, Commitment culture

Level 1

Level 5
Opportunistic Improvements, Empowered culture

Individual

Ad Hoc processes, inconsistent results, Hero-driven culture

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The P- CMM helps organization to (BENEFITS):

Characterize the maturity of their human resource practices Guide a program of continuous human resource management Focus on improving individual and team capabilities Integrate people process improvement with business process improvement Establish a culture of performance and professional excellence Align human resource strategies with business goals

The strategic objectives pursued in the P-CMM are to Improve the capability of software organizations by increasing the capability of their staff, Ensure that software development capability is an attribute of the organization rather than of a few individuals, Align the motivation of the staff with those of the organization, and Retain assets (i.e., people with extensive skills and capabilities) within the organization.

Necessity of PCMM

Recruiting talents with technical skills is not enough anymore.

As organizations' internal processes mature, so should workers' decision-making and implementation proficiency. As people gain competencies through training and mentoring, it is expected that they become empowered to eventually make professional and organization decisions.
Things change for the better as participation is encouraged among workers. So, planning and analysis according to organizational goals are introduced in the people management process.

When organizations develop integrated capability among workers then they can continue to innovate products, services, and processes. Poaching by competing firms and high turn-over can be prevented. The P-CMM describes an evolutionary improvement path from ad hoc, inconsistently performed practices, to a mature, disciplined, and continuously improving development of the knowledge, skills, and motivation of the workforce.

In a nutshell, For human resources and worker development practitioners, P-CMM serves as a framework for developing employees from mere knowledge workers to knowledge managers.

CASE STUDY

Background

Wipro, a part of the Indian Software services major and Azim Premji Group of Companies was established in 1945 and commenced operations in 1946. In 1947, company set up an oil mill and hydrogenated cooking medium plant at Amalner in Maharastra for manufacturing vegetable Ghee, edible Oil and Laundry soap. Then after 1966 company had diversified in to many areas.

Subsidiaries

Products and Services

Wipro Fluid Power

Wipro Consumer Care Division Wipro Infotech Wipro Systems Ltd Wipro GE Medical Systems Ltd Wipro Lighting Business Wipro Net Ltd

Hydraulic and Pneumatic Cylinders

Soaps, Vanaspati, baby care Products and Toiletries Hardware Products Software Products Health care products Incandescent and fluorescent lamps, industrial lighting ISP Provider and Application Service Provider

Wipro Finance Ltd

Wipro e-peripherals Wipro Inc

Hire purchase , Leasing and Loan Syndication Services

Manufacturing and Marketing of computer peripherals Invest in various technology segments in USA

Over the years, Wipro Entered into various alliances with global IT majors like Microsoft, SAP, Siebel, Symbian, Computer Associates etc. By the end of the financial year 2000-01, Wipro had emerged as a Rs. 31 billian Company, offering a complete suite of IT Infrastructure Solutions, Professional Services and Business Solutions. It provides services in various sector like telecom, healthcare, retail and system software. Wipros IT Sector had around 18000 Customers, 7000 high end systems across 190 locations and it also had a network of 180 business partners. Wipro had 28 developmental centres spread across India, Europe and USA. It has 14000 employees overall.

SBU HEAD

Domain/ Techsplt Solution Architech

Tech/ Bus/ACC Manager

Marketing manager

Project manager

Module Leader

Team Member, Fresh Engr/ MCA

STAGES 1st STAGE

Explanation -Team Member -Employees having Experience of Less than One year. -Primary Task was to gain experience with various tools and software development -Module Leaders -In addition to 1st stage they integrate with customers and leading the team. -Project managers if choose technical career. -They are responsible for setting standards for Project, Building customer relationship and providing technical assistance to team, develop a good work culture.

2nd STAGE

3rd STAGE

4th STAGE

-Technical Managers -Managing multiple projects and issues related to customers, People and business
-Become head of the SBUs.

5th STAGE

QUESTIONS
Q1: Comment on the circumstances that led Wipro to opt for the PCMM certification. What were the basic Objectives underlying the program?

Part of overall quality initiative People practices needed to be evolved in parallel with software processes Workforce had a high attrition rate To become HR no. I company Clearly measurable results Specifically designed for talent in software and IT companies.

Q2: Study the evolution of the PCMM standards as an integral part of the software quality initiatives of SEI. Also make a comparative analysis of the 5 level structure of the CMM and PCMM standards.

In late 1980s, there was a global upsurge in information technology business and demand for software soar. This growth saw an increase in software development which led organizations to focus on processes used in software development. This resulted in development of CMM.

CMM was only focused on technology so organizations realized that implementation of CMM required important changes in the methods applied for managing people, focused on issues related to people and HR Management. Thus PCMM evolves.

Contributes to achievement of process area goals

CMM PCMM CMM (Capability Maturity Model) PCMM is People Capability is a model of process maturity for Maturity Model developed by SEI, software development. which mainly concentrates on People Processes. It is an evolutionary model of the It mainly aligns the business in progress of a companys abilities to attracting and retaining the best develop software. talent in the industry.

CMM is more generic and focused on organization process.

CMM has just Maturity levels Too much focus on Technology and failed to focus on People

P-CMM is more focused on the organization workforce.

P-CMM has a staged architecture Focus on issues related to People and HR Management

Q3: Explain the methodology employed by Wipro implementing the PCMM model and integrating it with its operations. How far do you think the existing infrastructure facilitated speedy and successful introduction?

Level 2 In house training department e-learning initiatives and Training on demand Level 3 focused on Career development path Team Member : Work Exp < 1 yr Module Leaders Project Manager Technical Manager External agencies are appointed to conduct the yearly Employee Perception Survey

Level 4 develop Leadership Programs Entry Leaders Program Wipro Leaders Program Business Leaders Program Strategic Leaders Program Selection Criteria: IQ, technical knowledge , potential competencies

leadership

Level 5 Streamlining of manpower planning & HR policies Commitment of 5% of its overall manpower costs towards employee training Taskforces for fixing gaps identified Assessment team : 7 line mangers, 3 HR staff, 2quality staff

Q4: What is the nature of potential contribution that PCMM could make to companies like Wipro who are competing globally and dependent critically on export business?
Implementation

of PCMM helps to Increase: Skill levels and technical expertise of teams Responsiveness to changing business needs Capability to ramp up the team in a short time period and minimize the impact of staff turnover Improved personal performance at individual employee level through shorter learning curves, best practices, and experience sharing. Increased productivity and skill set of employees

Prepare company for rapidly changing business environment of software industry PCMM helps in integrating HR objectives of company with its strategic objectives Helps in building up employee commitment towards the company Align training of employees with business requirements of company Builds up credibility of company which in turn helps in acquiring and retaining clients Helps in bridging gap between existing processes and the ideal process by identifying drawbacks in existing processes

PCMM certified companies

Implementation Of PCMM

Companies officials discussed the possibility of becoming a HR NO. 1 company so they decided to get PCMM Certification in 1996. Mr. Dilip Ranjekar, Executive VP, HR and Ms. Ranjan Acharya, Corporate VP,HRD went to US to conduct an in-depth analysis on global HR Practices of AT & T, GE, Tandem and British telecom etc. In 1999, after attending workshop in Mumbai on PCMM, Wipro decided to implement PCMM.

Wipro developed a competency dictionary consisting on 24 competency areas of PCMM levels, Behavioral Issues and Procedures to address them.

Wipro took up study:

To Identify HR areas where they are weak Conducted Initial Gap Analysis for level 2 137 Employees(Managers and Process owners) were covered Employees were grouped in 10 and 20

Top management took personal Interest in presenting its concepts to all employees which helped them to make understand employees that PCMM was an Expansion of opportunities and aimed at building people leaders.

Level 1:
Every new recruit in the company was given well-structured induction/training program, which covered all aspects of software development skills required. Wipro rolled out e-learning initiatives for all employees. The Training on Demand service helped employees to take proactive decisions regarding their training needs.

Level 2: These steps enabled the company to meet the requirements of the PCMM Level 2. In this step company implement Process areas.

Level 3:
Wipro began to integrate KPAs for this level. Company focus on career development path which consist several levels.

Level 4:
At this level Wipro Concentrated on Key process areas. Wipro recognized the need to groom employees and develop leadership qualities and started Wipro leaders program to enable them to face challenges in their career path.