David Green: Welcome to the Digital HR Leaders. One of the big trends in the past few years has been the emergence of the skills-based organisation. We’ve seen several examples in previous episodes of the podcast, from companies such as HSBC, Unilever and Standard Chartered Bank, on how they are taking a skills-based approach to learning, internal mobility and workforce planning. But as there is no one-size-fits-all approach and to help guide you on your own unique journey, I have invited two special guests who are leading the charge in making skills a core part of the people strategy at Johnson & Johnson.
As such, I’m delighted to welcome Christina Norris-Watts, Head of Assessment and People Practices, along with Doug Shagam, Head of People Data and Insights, from J&J. In this episode, you’ll hear how they have been developing skills-based approaches to talent across the organisation, what projects and initiatives they have implemented in order to make it work, and guidance for HR practitioners on how to embark on a similar journey. So, stay tuned for a great conversation on the practicalities of skills-based talent management.
Hi, Doug, hi, Christina, really looking forward to our conversation, welcome to the show. Before we dive in, it would be great to give listeners a brief introduction to yourselves and your roles at Johnson & Johnson. So, Christina, I’ll start with you and then we’ll go to Doug.
Christina Norris-Watts: Hi, David, thanks for having us here today, it’s really wonderful to be here. So, I’m currently the Head of Assessment and People Practices with J&J, like you mentioned, and in this role I oversee our assessment strategy for both selection and development, as well as our skills strategy for the enterprise. And so, to be clear what that really means, I think about what good looks like and then how we measure people on those things.
I have a PhD in Industrial Organisation Psychology, I’ve spent about 20 years in the assessment and talent management space and really have the privilege of working with very smart people here at J&J, like Doug, to continue to innovate, experiment and advance in this area.
David Green: Christina, it’s great to see that you’re partnering with Doug, and Doug, you’re going to introduce yourself, but obviously we know each other well from our people analytics backgrounds.
Doug Shagam: We do. Thank you, David, and Christina, it’s always a privilege to be able to spend time with you talking to great people like David. My name is Doug Shagam, I’ve been with J&J for about five years, and I’m currently the Head of People Data and Insights at J&J. I’ve had the privilege, over the last five years, of actually having two roles, the one most currently and prior to this, I was the Head of Strategic Workforce Planning and Organisational Enablement.
Being able to have such roles, I’ve been able to see all parts of the people analytics function, being able to test and learn, do new things, try out new things, quite a bunch of course we’ll talk about today, but great partners like Christina and others within our global talent management and different parts of our business. I’ve been doing this for quite a while, over all my career, 20 years in analytics, specifically the last 10 in HR and besides that, I also have the privilege of being able to be an adjunct faculty member at three universities, all at master’s level, HCM or MBA level; it’s a really, really full experience to be able to do that.
David Green: Well, it’s fantastic to have you both on the show and I’ve had some insight into the work that you’ve been doing around skills at J&J, and I know it’s something that our listeners are going to be able to take a lot from. So, as you both know, there are a lot of conversations at the moment around the transformation towards a skills-based approach, it’s a hot topic. We’ve had a number of episodes on the show featuring that over the last year or 18 months. But I’m always quite curious to start off with, and I like to ask all the guests, particularly those that are representing organisations that are on this journey, to just understand a little bit more about what’s driving this change at your specific company. So, Christina, what prompted J&J as an organisation to start looking at talent through the lens of skills?
Christina Norris-Watts: It’s a great question, David, and to talk about what prompted us to start, we actually have to talk about where we wanted to go at the end and how we wanted it to end. So, we had two major goals: one was to democratise development for all employees at J&J, and what we mean by that is to ensure everyone at J&J knew how to grow their career, understood where the business was heading and understood the options available to them; and the second goal was to make sure we as an organisation understood the skills we have and the skills we still need to achieve our goals.
So, with those two things as an ending point, we then worked backwards to determine, how are we going to get all that information needed to inform and move closer to those goals? What are we going to do with that information? How are we going to make sure that we do that across the entire organisation, and an organisation as diverse as J&J that has so many different types of jobs and types of employees in so many different countries; how are we going to work backwards from that to get to where we want to go?
David Green: And, Doug, obviously with your workforce planning hat on, that sounds like a workforce planning 2.0?
Doug Shagam: Yeah, right. For so long, we’ve always been defined by the titles that we have, and we know the titles that we have are typically a collection of skills and experiences that we have. But is that all we are, just those collections of skills and experiences based on the current role that we have? For all the listeners out there, how many of you know that after I finished high school, my first year of my undergraduate experience was actually spent at a top-tier music school. Now, I’m not here to say that J&J’s going to be bringing me forward as the next musical conductor of the J&J band; however, that is a skill that I do possess and should the need arise for musicians for J&J’s Got Talent, now they have a potential source to go tap into.
What we think about is, we are not just a group of accountants, or group of people who are data engineers, or a group of people who have a job title. We are a collection of different skills, different experiences, and how can we leverage that and what people really want to do in their career, to grow, to adapt, to understand what do the organisational capabilities really want to be, and help them further their opportunities to grow within our company?
David Green: Let’s go back to the early stages of the skills transformation at J&J. Obviously, there’s no one size fits all when it comes to this, but I think it will be really useful for listeners to hear a little bit about how J&J approach this new way of looking at talent. What were the different methods that you took when you started out to answer those questions that Christina outlined, you know, understanding the skills that you’ve got and the gaps?
Doug Shagam: Yeah, absolutely. So, this really started as a true proof of concept, and what I mean by that is we know that there are lots of ways to measure skill. I don’t know, Christina could probably tell us when the whole notion of capturing skills and identifying when they actually started; I can’t even fathom the date, but it was probably a long, long time ago and there’s lots of ways to do it. But what we said was, “Is there are a way that it could be done at scale? Is there a way that we could do it that could be very robust in terms of ease of use? Could there be a way that could be done that would be different than what more conventional methods would be?”
So what we did was say, “Let’s take ten skills under a capability umbrella called analytics”. Now, this comprised of about seven more technical skills, and it was everything from what we would call business insights, do people understand that we have generated information from our business and people can understand a little of what that information may be; all the way to machine learning, statistical programming, machine learning. And they were skills (a) do I possess that; and then (b) what proficiency level do I have, everything from entry level, which is sort of like, “I watched a TED Talk on it for 20 minutes, maybe not even 20 minutes, but a short TED Talk”, all the way through, “I’m a thought leader, I’m somebody who’s out there speaking at conferences, I know what I’m doing”?
We took two different groups. One group was a group that was in the data science council, and another group of around 4,000, 5,000 folks that were randomly selected across the United States. We wanted to know (1) do we have data that’s good enough within our digital footprint, so information that was contained in our own HR systems, to say, “Wow, we actually could identify possession and proficiency of those skills we wanted to show our employees”; (2) based on some algorithm that’s been created, do they agree with the information? Do they trust us by showing that, you know what, this is the information I have, this is the information that a computer has generated, do I really believe these people when they tell me it’s only going to stuff between these two groups, it’s not going to any further? It turns out it worked out pretty well.
David Green: So, Doug, this is the kind of approach of inferring skills from data that you’ve got, rather than going out to employees and asking them what skills they’ve got, because that takes time for the employees to do it, it’s sometimes difficult to drive adoption; but instead, you went out to employees saying, “We’ve mined this data and this is our understanding of these skills. Can you please just validate that this is accurate?”
Doug Shagam: Yeah, that’s right, we asked employees to opt in first, and they did, and they participated and then they got back the results. We gave them opportunities later on to take a ride with us on an experimental skills journey; exactly right.
David Green: So, this was a pure pilot really to just see whether you actually had the data that was available, and you could get some form of accuracy and that accuracy was judged by those employees that opted in to validate the information that had been collected? You then moved to the next stage, so this was almost a pilot of a pilot, I’m guessing, from what you’re saying; you didn’t then just suddenly say, “Okay, now we’re going to deploy it all across J&J”; you thought, “Let’s do a deeper pilot”, and I think you started with your technology department first, I think I’m correct.
It would be helpful to ask, because I think again with something like this, the general recommendations and guidance that we get from both practitioners and other thought leaders, or even vendors in the field is, do start with a pilot, prove that concept. Why did you choose the technology department; it would be helpful to understand? And, what did you learn from it?
Doug Shagam: Yeah, absolutely. Well, if there’s one thing that I know that I’ve found to be successful on my career is, when you’ve got an engaged sponsor and you’ve got an engaged Head of HR for that sponsor, who really wants to move forward, a group of people that we know are willing to take risks and try things out, that’s sort of three green lights, if you will, to move forward. That’s really where things started to move quite a bit.
What I love about the technology organisation, just as Christina pointed out, they started with the end in mind. They said, “Before I just go willy-nilly and say, ‘I just want to assess every skill humanly possible’”, what they did was instead say, “I’m going to collect all of the information I have from strategic plans. We know we have what we call long-range financial plans, strategic plans, and they said, “All right, across our businesses, the different sectors that we have, the different functions that we have, what are the common capabilities and the skills underneath those capabilities that we as a function need to have, and they’re going to meet these goals based on the existing business, typically three, multiple years out? So, it’s not today, it’s a couple of years out from now”. “Well, if we need different capability sets to sell products, to deliver products, to do all these different things, then we have to plan”, and as you know with workforce planning, we can’t start to hire people two years after something is going to go live; we have to hire it two years before someone even starts to develop something. So, the beauty of this was understanding what those plans were and putting in place practices so that we had a strategy around buying it, building it, borrowing. But to do that, we had to know where people stood, and that’s where this was really educational for so many people within the organisation. It was not at all a promotion around, “Look, you know what, if you don’t do this, there’s going to be problems, this is not going to go well for you”. This was really about, “This is what we’re fighting for. We want you and only you to see, and it’s your choice on how you want to do things afterwards”.
Some really great results came from that, specifically one simple example. Over 2,000 people went from no skill detected in certain skills, to having evidence of at least entry level of more or the skills stack. No one was forced on their goals and objectives, nobody had to go do that, they did it voluntarily, and that was just in the very early stages of rolling this out within the technology organisation. I’m sure Christina, you’ve got stuff to add to that.