The Impact of Skills Management on Business Performance
In our modern business climate, companies are made or broken by the amount and kind of information they use in guiding business decisions, and each day, new ways to gather data and new applications for available data are explored.
Since there is a general consensus that a company’s most important asset is its people, reliable data about people’s skills and how they relate to business goals should have tremendous effects on every company.
Many companies have thus implemented skills management systems, some for more than a decade now. And so, ample time has passed to assess the impact skills management has had (and can have) on business performance.
I recently published a whitepaper that analyzed this topic. The paper provides an in depth view into the experiences of companies that have implemented this system, and how it has improved businesses in 4 major ways:
1. Bridging the Skills Gap. 2. Effective Employee Development and Succession Planning. 3. Getting the Right People into the Right Positions. 4. Financial Benefits.
How To Address The Lack Of “Ready Now” Candidates For Leadership Positions
If you are in human resource management or serve in a related capacity, the issue of whether to promote or hire to fill a leadership position is one you have likely faced.
And it is viewed in a good light when an organization relies more on promotion than on recruiting as this shows that the development and training structures put in place are effective enough to groom leaders.
However, a recent report reveals that many organizations lack candidates who are “ready now” for promotion to leadership roles.
Approximately 50% of the respondents said that their organization lacks a concrete channel for developing and delivering “ready now” candidates to fill leadership positions.
Many companies thus resort to recruiting instead of promoting when a leadership position needs to be filled. In fact, “43% of C-suite positions are filled from the outside.” – Korn Ferry Study
SOME OF THE CAUSES IDENTIFIED
1. Nonspecific Development: Many organizations do not focus on the unique development of employees with relation to their goals and potential leadership duties and challenges.
“Oftentimes, leaders spend a good part of their careers participating in standard development programs that aren’t customized to their specific needs, which significantly hinders the fulfillment of their true potential being reached.” – Korn Ferry Study
2. Lack of Adequate and Personalized Experience Opportunities: Experience remains the best way to learn, yet most organizations do not provide enough experience and development opportunities.
Worse yet, the opportunities provided follow a general standard that has no real emphasis on building up a particular employee so he can take on a leadership role.
HOW TO ENSURE A STEADY SUPPLY OF “READY NOW” EMPLOYEES
1. Start Development Early in An Employee’s Career: From the very onset, an employee’s career should have a defined growth path. Employees should be exposed to challenging experiences right from the beginning so their aptitude for decision making can be identified.
2. Make Development and Experience Opportunities Unique to The Skills and Goals of Each Employee: Once an employee’s skills and experience have been identified and recorded, development plans need to be designed around them and in relation to their leadership goals.
3. Use a Skills Tracking and Goal Management System: The first two steps may lack structure and direction if there is no way to track the skills and experience of each unique employee.
A skill tracking system stores a current list of an employee’s proficiencies and experience. If this system also incorporates goal management, weaving skills and experience into the development process becomes a simple task.
If you already use Skills DB Pro for skills management, one easy way to create unique career plans is with the Competency and Goal Management System. With it, you can compare the current skills and experience of an employee with what is required for a leadership role and easily Identify gaps.
Once gaps have been identified, you can then add the employee to scheduled trainings to bridge these gaps, using our training module.
Skills DB Pro has recently gone one step further. We are currently beta testing an Individual Development Plans (IDP) module, and the name says it all. We will publish a blog on this feature when it becomes available to all our users.
If you use any other Skills Management System but do not yet know if goal management is part of it. You may want to read their documentation or contact the providers.
If you haven’t used a skill and goal management system at all, our 45-day free trial is a great place to start.