HR PracticesFor I/T Success

THIS REPORT PRESENTS I/S HUMAN RESOURCE PRACTICE RESEARCH FINDINGS WITH THE FOLLOWING OBJECTIVE

• Understand HR practices of high performance I/S organization and suppliers with which internal I/S operates and must compete for resources

• Suggest directions for HR program evaluation and selection

• Highlight the linkages between I/S “resourcing” strategy, business strategy, and HR programs

THE RESEARCH WAS BASED ON THE ASSUMPTION THAT TRADITIONAL HR PRACTICES ARE CHALLENGED BY RAPIDLY CHANGING BUSINESS AND TECHOLOGY

ENVIRONMENTS

Hypotheses

• Current workforce planning models assume a static business environment and do not reflect the dynamic nature of today’s business and technology environment -- or the options available to address them

• Existing retention and reward practices may not be market competitive and may hinder ability to attract and retain key I/S talent

• Career and professional growth opportunities are often not well defined and are a source of employee frustration

• Employee training and development practices lack a strategic focus on business, organization, and people requirements

HIGH PERFORMANCE I/S ORGANIZATIONS COMMIT LEADERSHIP TIME AND EFFORT TO

RESOURCE DEVELOPMENT AND DEPLOYMENT

• I/S leaders must ensure all employees are valued and included in all aspects of their business

• I/S must develop a long-term plan to address leadership and people needs in the I/S ranks

• I/S leaders must be prepared to communicate with employees about “employability” in our new organization

I/S LEADERSHIP OWNS THE PEOPLE STRATEGY AND ENSURES ITS ALIGNMENT

WITH THE BUSINESS

• The personal attributes and knowledge of I/S must be aligned with the requirements of the business and technology

• I/S must develop a long-term plan to address leadership and people needs in the I/S ranks

SALARY STRUCTURES ARE FLEXIBLE AND FOCUSED ON INDIVIDUAL CONTRIBUTION

OR PERFORMANCE INSTEAD OF JOB POSITION

• Different compensation approaches will be needed to attract and retain I/S resources

• Oil industry compensation levels may no longer be the correct benchmark for some I/S positions

• Our current compensation and benefit package encourages long-term employment and may not result in market-competitive compensation levels for some positions

• Current compensation and benefit practices do not support alternate employment relationships which are becoming a more prevalent way of securing short-term resources

WHEN DESIRABLE, STRATEGIC PROGRAMS ARE USED FOR RETENTION OF RESOURCES

WITH “HOT SKILLS”

• Different compensation approaches will be needed to attract and retain resources for “hot” technologies

• Oil industry compensation levels may no longer be the correct benchmark for some I/S positions

NON-MONETARY INCENTIVES ARE AN INTEGRAL PART OF A COMPREHENSIVE I/S

REWARD STRATEGY

• Different compensation approaches will be needed to attract and retain resources for “hot” technologies

• Current compensation and benefit practices do not support alternative employment relationships which are becoming a more prevalent way of securing short-term resources

ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE IS TIED TO SERVICE DELIVERY AND OVERALL BUSINESS

PERFORMANCE

• Performance goals and metrics must be aligned with business needs and commitments

RECRUITING AND RETENTION EFFORTS ARE FOCUSED ON EMPLOYEES WITH CRITICAL

SKILLS AND COMPETENCIES

• Large I/S organizations will rely more on external recruiting at all levels in response to changing requirements

• I/S lacks the requisite partnering competencies to support sourcing alternatives (due to culture, roles, rewards, etc.)

• Future training investments will be focused on skills and competencies to support I/S’ strategic capabilities

EXTERNAL HIRES PROVIDE CONTINUOUS INFUSION OF NEW TALENT INTO THE

ORGANIZATIONS

• Due to increasing reliance on partnering and industry hiring, the appropriate career path for some I/S employees may cross companies

• I/S organizations must develop more flexible work-force planning models (FTEs and skill sets) in line with rapid pace of business change

• Large I/S organizations will rely more on external recruiting at all levels

TRAINING INVESTMENTS ARE ALIGNED WITH BUSINESS OBJECTIVES AND THE RETOOLING OF

SKILL SETS IS REINFORCED BY THE ORGANIZATION’S CULTURE AND HR PRACTICES

• The pace of technological change means future training investments will focus less on specific technical skills and more on personal attributes and knowledge to support I/S’ strategic capabilities

• Current training programs and investments must be changed to align the personal attributes and knowledge of I/S with the requirements of business and technology

• I/S must invest in retraining resources currently dedicated to supporting mature technologies to retain these employees and their critical business and process knowledge

EMPLOYEE DEVELOPMENT OPTIONS ARE LESS TRADITIONAL, E.G., UPWARD CAREER LADDER, AND

MORE EXPERIENTIAL OR ASSIGNMENT ORIENTED

• Companies with “flat” organizations must develop alternative career paths to replace traditional hierarchical “upward” career paths

• Traditional “job family”, “career path”, and “salary group” structures are no longer applicable for new, flatter organizations

• Lateral job movements will be an increasingly common option for promoting professional growth

• I/S organizations should promote career paths which include jobs outside I/S to develop business insight

I/S RESOURCES ARE TEAM-OR POOL-BASED AND A PERSONAL ATTRIBUTE AND KNOWLEDGE INVENTORY

SUPPORTS TEAM BUILDING AND EMPLOYEE DEVELOPMENT

• I/S organizations must develop more flexible workforce planning models (FTE’s and skill sets) in line with the rapid pace of business change

• Virtual teams are an essential work structure for new, “flatter” organizations

• Personal attributes and knowledge assessments are needed to drive workforce planning, training, and development

• Current compensation practices tie job “value” to job scope, e.g., span of control, instead of employee ability to demonstrate strategic skills and abilities

• Effective partnerships with clients and the market can only be formed if I/S learns to value and leverage diversity

CANDID, ONGOING, TWO-WAY DIALOG WITH EMPLOYEES SETS CLEAR EXPECTATIONS

REGARDING WORKFORCE NEEDS, BUSINESS STRATEGY, AND OTHER MAJOR INITIATIVES

• I/S leaders must communicate with employees regarding employability in the new organization

• I/S leaders must ensure all employees are valued and included in all aspects of their business

CLIMATE / EMPLOYEE SURVEYS ARE USED TO GAUGE QUALITY OF WORK

ENVIRONMENT

• I/S leaders must ensure all employees are valued and included in all aspects of their business

DISCUSSIONS WITH I/S INDUSTRY EMPLOYEES CONFIRM THE FRUSTRATION WITH MANY CURRENT HR PRACTICES AND THE LACK OF UNDERSTANDING OF THE OLD VERSUS NEW “DEAL”

OLD DEAL“A fair day’s work for a fair day’s pay”

I F YOU:

Are loyal

Work hard

Do as you’re toldWE’LL PROVIDE:

A secure job

Steady pay increases

Financial security

AND YOU’LL BE PART OF:

A dull, safe industry

DISCUSSIONS WITH I/S INDUSTRY EMPLOYEES CONFIRM THE FRUSTRATION WITH MANY CURRENT HR PRACTICES AND THE LACK OF UNDERSTANDING OF THE OLD VERSUS NEW “DEAL”

PERCEIVED DEAL TODAY“More work and more risks for the same pay”

I F YOU:

Stay

Do your job plus someone else’s

“Volunteer” for task forcesWE’LL PROVIDE:

A job if we can

Gestures that we care

The same pay

AND YOU’LL BE PART OF:

A business in crisis

DISCUSSIONS WITH I/S INDUSTRY EMPLOYEES CONFIRM THE FRUSTRATION WITH MANY CURRENT HR PRACTICES AND THE LACK OF UNDERSTANDING OF THE OLD VERSUS NEW “DEAL”

NEW DEAL“A mutually beneficial partnership”

I F YOU:

Develop skills we need

Apply them in ways that help the company succeed

Behave consistently with our new valuesWE’LL PROVI DE:

A challenging work environment

Support your development

Reward for your contribution

AND YOU’LL BE PART OF:

A revitalized industry leader