What is PCMM? - 2023 Guide To Levels of People Capability Maturity Model
Written By : Bakkah
1 Mar 2023
In today’s hyper-competitive business environment, companies are facing two challenges, one is to produce or perform the finest products and services and one is to gain the talent needed to produce or perform them. The more knowledge is needed to build and deliver products and services, the more effort is needed to attract and retain the most qualified employees.
All business executives know that the ability to attract, develop, organize, motivate, and retain talented people, is a main requirement for achieving a good competitive position. One of the tools that will help address the critical people issues of the companies is The People Capability Maturity Model (PCMM).
What is The People Capability Maturity Model?
The PCMM, a member of the CMMI product family of process maturity models, is a human capital management framework adopted by small and large companies worldwide, to improve the management and development of the human assets of the company.
People Capability Maturity Model is a tool used to help organizations feature the maturity of their workforce practices, establish a platform for workforce development, set a schedule for improvement actions, integrate workforce development with process improvement, and establish a culture of distinction.
Although the focus in PCMM is on software or information system companies, the processes and practices are applicable for any organization that aims to improve the capability of its workforce.
What Are The 5 levels People Capability Maturity Model?
The People Capability Maturity Model (PCMM) is a framework developed by the Software Engineering Institute (SEI) that helps organizations assess and improve their human resource management practices. The PCMM identifies five levels of maturity in managing people capabilities:
Level 1 – Initial:
The company has no standardized workforce practices, most practices are informally performed. In this level, people's practices are typically ad hoc and poorly defined. There is little or no consistency in how people are managed, and the organization's success is largely dependent on individual talent and effort.
Level 2 – Managed:
At this level, basic people management practices are established and documented, and the organization has a basic understanding of its workforce and skills requirements. The company empowers and integrates workforce capabilities and manages performance quantitatively. However, practices are still reactive and there is limited integration between different HR functions.
For example, the organization is able to predict its capability for performing work by quantifying the capability of its workforce and of the competency-based processes they use in performing its assignments.
Level 3 – Defined:
The company defines and develops workforce capabilities that comply with its strategy and objectives. At this level, HR practices are well-defined and consistently applied across the organization. This means that the workforce practices that were implemented in level 2 are standardized and adapted to achieve improvements in the company's workforce capabilities.
There is a focus on continuous improvement and collaboration between different HR functions to support the organization's goals.
Level 2 – Predictable:
At this level, the organization has established a data-driven approach to HR management and can anticipate and respond to changes in workforce needs and skill requirements. The company starts establishing a foundation for common workforce practices, with the managers handling the management and development of their employees.
The organization is able to leverage its people capabilities to achieve strategic objectives. One of the effects of this level is a decrease in voluntary turnover, which leads to a decrease in the costs of the company.
Level 5 – Optimizing:
At this level, continuous improvement becomes one of the consistent business processes. At this level, the organization is able to continuously improve and innovate its HR practices to support the changing needs of the business. The organization is agile and responsive to emerging trends and challenges in the workforce and is able to leverage its people capabilities to achieve sustained success.
What are the benefits of the People Capability Maturity Model?
In order to gain a good competitive position, you must first and foremost maintain your talented employees. PCMM is one of the most effective solutions for improving the capabilities of the company's employees, thus improving the quality of the work done by them and achieving the greatest benefit for the company and its competitive position.
Bakkah team for training and consulting