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c

Narrowingthe

TalentGap

Howtobeafront-runner

intheracefortalent

Thetalentcrisisisreal.

Projectsareatrisk.

It’stimetomaketalentastrategicpriority.

Summary

Asaresultofeconomicgrowthandincreasingprojectization,thedemandforprojectmanagersisexpectedtosoarin

thecomingdecade.Atthesametime,thecollectiveimpact

ofdemographictrends,retirements,andculturalshifts

intheworkplace,willcreateashrinkingtalentpoolthatis

insufficienttomeetdemand.PMIandPwC’slatestglobal

researchindicatesthereisalackofawareness,orperhaps

somecomplacency,amongproject-basedorganizationsoftherisksthatlieahead,andthepotentialdetrimentalimpactthatthetalentcrisiswillhaveonprojectsandtheirabilitytomeetstrategicgoalsinthefuture.

Thispaperhighlightswhatorganizationscandotominimizetheimpactofthecrisis.Ourresearchpointstoactionsthatmakeiteasiertoattract,developandretaintalent,asevidencedbythestrategiestakenby‘high-performing’organizations–thosewehavecalledfront-runners–whofindrecruitingproject

managerslesschallenging.Andwediscusstheneedtorefreshtheimageoftheprofessiontoonewhereprojectmanagersareviewedasstrategicpartnersandchangemakersrather

thantacticaltroubleshooters.

NarrowingtheTalentGap

2

Successfulprojectsareakeydriverofglobal

economicgrowth.Asmoreandmoreindustries

becomeprojectized,thedemandforskilledproject

managersisexpectedtosoarinthecomingdecade.Butatthesametime,agingpopulationsanddecliningbirthratesinmanycountriesareshrinkingthesizeoftheirworkforces.AccordingtoPMI’s

2021TalentGap:

Ten-YearEmploymentTrends,CostsandGlobal

Implicationsreport

,theglobaleconomywillneeda

totalof25millionnewprojectprofessionalsby2030.Toclosethisgap,2.3millionpeoplewillneedtoenterprojectmanagement-orientedemployment(PMOE)everyyearjusttokeepupwithdemand.

Thetalentgapisbeingexacerbatedbythepost-

pandemic‘GreatResignation,’1whichhasseenworkersquittingtheirjobsindrovesallovertheworld,andit

seemsthatthesituationwillonlygettougher.

Microsoft’sWorkTrendIndex2reportestimatesthat over40%ofworkersgloballyareconsideringquittingorchangingprofessionsinthecomingyear.

TheTalentGap:FactsandFigures

Projectmanagement-orientedemployment

(PMOE)—whichincludesskilledproject

managersandthoseinlessformalproject

managementroles,thatencompassprojectmanagementskills—makesup3%ofallglobalemployment,equatingto90millionjobs.Thisisexpectedtogrowto3.2%or102million

jobsby2030.

By2030,atleast13millionprojectmanagers

areexpectedtohaveretiredcreating

additionalchallengesforrecruitment.

Toclosethegap,25millionnewprojectprofessionalsareneededby2030.

Source:ProjectManagementInstitute.2021.

TalentGap:

Ten-YearEmploymentTrends,Costs,andGlobalImplications

.()

Atthesametime,PMIandPwC’slatestglobal

researchindicatesthattalentstrategieshaven’t

changedmuch.There’sawidespreadlackoffocusondevelopingandretainingexistingprojectmanagers,

andalackofvarietyandinnovationinattractingand

recruitingnewtalent.Thecoreproblem,webelieve,isthatthereisn’tabusinesscaseforinvestmentintalent—onethatexplicitlyalignscapabilitiesto

organizationalstrategyandcompetitiveadvantage.

Thebusinesscaseshoulddescribehowhiring,training,performance,andretentionstrategieswillbealignedtothosecapabilities;andcritically,itshouldusea

data-drivenapproachtoassesscapabilities,measureprogress,andlinkthattoorganizationalperformance.

Withoutasystematicapproachandafocusonhard

numbers,personaltraitsandbehaviorswillcontinuetobeviewedas“soft”andriskbeingundervalued.And

unlesscapabilities-buildingisrecognizedandtreated

asthecentralenablerofsuccessfulstrategy

execution,organizationswillbeunabletomeettheirgoals,projectswillfalter,andtheprofessionasa

wholewillbeunabletoavoidtheimpactofaglobal

talentcrisis.Mostorganizationsseemunawareofthecrisis,howeversome,albeitaminority,havebeguntotakeaction.

InJulyandAugust2021,PMIandPwC

undertookaglobalsurveyof4,069peopleinvolvedinleadingorfacilitatingthe

deliveryofprojects,programs,and

portfolios.Thesurveysamplewaswide-

rangingandincludedindividualswithformalprojectmanagementqualificationsandthose

withjobtitlessuchasproject/program/

portfoliomanager,aswellasthoseinlessformalprojectmanagementroles,and

initiativeandworkstreamleaders.Theexecutiveviewpointwasalsowell

represented,withthesurveycapturing1,348C-suiteresponses.

1Theterm“GreatResignation”wascoinedbyprofessorAnthonyKlotztodescribetheworldwideincreaseinpeoplevoluntarilyleaving

theirjobsfromApril2021onward,supposedlyasaresultoftheimpactsoftheCOVID-19pandemicandworkplaceconditions.2MicrosoftWorkTrendIndex.2021.

TheNextGreatDisruptionisHybridWork—AreWeReady?

Microsoft.

3NarrowingtheTalentGap

GainingaCompetitiveAdvantageintheRaceforTalent:

TheFront-Runners

PMIandPwC’sresearchhasidentifiedacohortof250organizationsthatareexperiencingfewerhurdlesinattractingandretainingtalent,relativetotheirpeers.Theirproject

managementoffices(PMOs)aremorealignedwithorganizationalstrategy—three

quartershaveC-suiterepresentation,and90%areconsideredbytheirexecutiveleaderstobeastrategicpartner.Theyfinditeasiertorecruitpeoplewithcriticalprojectskills

andaremoresuccessfulatnurturingprojectmanagersintheirroles.Theyarealsomorethantwiceaslikelytohaveperformedmuchbetterintermsofrevenuegrowth;customeracquisition;customersatisfaction;andenvironmental,sustainability,andgovernance

(ESG)metrics(seeFigure1).Throughoutthisarticlewe’llbereferencingthese“front-

runners”toillustratewhatthey’redoingdifferently,butitmustbenotedthatevenamongthisgroup,morecouldbedonetoattract,develop,andretaintalent.

Figure1:KeyPerformanceIndicators:Front-Runnersversusotherorganizations

C-suiteViewon2020Performanceversus2019(%statingmuchbetter)

RevenueGrowthCustomerAcquisitionCustomerSatisfaction

ESGMetrics

18%

30%

36%13%

39%

14%

27%11%

C-suite

OrganizationsOverall

Source:PMIandPwC.2021.

PMIandPwCGlobalSurveyonTransformationandProjectManagement2021

.

NarrowingtheTalentGap

4

WhichSkillsand

CapabilitiesMatterMost?

Top5Skills/Capabilitiesofprojectmanagers*(inOrderofPriority)

.Relationshipbuilding

.Collaborativeleadership

.Strategicthinking

.Creativeproblemsolving

.Commercialawareness**

Source:PMIandPwC.2021.

PMIandPwCGlobalSurvey

onTransformationandProjectManagement2021

.

*Topfiveskillsofprojectmanagers,selectedfromalistof16,includingpowerskills,businessacumen,andwaysofworking.

**Definedinthesurveyas“knowledgeofthebusiness,industryandecosystem,andtheirimplicationsfor

projects.”

Ourresearchidentifiesthemostimportant

capabilitiesthatprojectmanagersingeneralshould

have—andthey’reverydifferentfromwhattheyused

tobe.PwC’spreviousresearch3showsthatthebest

projectmanagersareevolving.Nolongercreaturesof

scope,schedule,andbudgetalone,theyarenow—

enabledbynewtechnology—focusingoninfluencing

outcomes,buildingrelationships,andachieving

thestrategicgoalsoftheirorganizations.PMIand

PwC’slatestresearchbuildsonthisanddemonstrates

that,whileabroadrangeofcapabilitiesisviewedas

importantbyourresearchparticipants,fivekey

skills—amixofinterpersonalskills,andwhatPMIcalls

powerskillsandbusinessacumenskills—aredeemedto

becriticaltothesuccessfuldeliveryofprojects.

Theresearchincludedanumberofin-depthinterviews

withseniorprojectleaders,andallofthemagreed

thatpowerskillsshouldbeatthetopofthelist.Some

intervieweesexpandedfurtheronwhatgood

relationshipbuildingskillslooklike,emphasizingthe

importanceofanempatheticapproach.

“Empathyisoftenunderestimated.Inbuildingrelationshipsweshouldhavea

connectionwithourstakeholdersandtreatthemaspeople—it’sswitchingtoaskinghowareyoudoingratherthanwhatareyoudoing—creatingamoreopen

conversation.Thiskindofempatheticapproach,lookingatitfromahuman

perspective,istherealskill.Youwilluncoversomuchmoreasaprojectmanagerwithanempatheticapproach.”

GEETHAGOPAL

HeadofInfrastructureProjectsDeliveryandDigitalTransformation,PanasonicAsiaPacific

3PwC.2021.

WhoIstheModernProjectManager:MeettheProjectInfluencer.

PwCreport.

5NarrowingtheTalentGap

portionofseniorleadersdoviewproject

managersasproblemsolversandrelationshipbuilders,importantenablersforthose

traits—creativityandflexibility—scorequitelow.

Theimageofprojectmanagersamongseniorleadersinfront-runnerorganizationsismorepositive,demonstratingthatstrongstrategicalignmentbetweenthePMOandtheC-suitehelpstoreinforcethevalueofproject

managementcapabilitiesinachievingwider

strategicaims.Butthere’sstillroomforimprovement,evenamongthishigh-

performinggroup.

TheImageProblem

Ourresearchhighlightsthatprojectmanagementhassomethingofanimageproblem

amongseniorleaders,withprojectmanagersbeingseenastacticaltroubleshooters

ratherthanstrategicpartners.ThissuggestsawidespreadlackofunderstandingofthevalueandimpactofprojectmanagementattheC-suitelevel.

Organizationsmustidentifythespecificanddetailedsetofcapabilitiesthatwillconfer

thegreatestcompetitiveadvantageinalignmentwiththeirstrategicpriorities.Proofthatthisisn’tbeingdoneisevidentinhowfewC-suiterespondentsassociateproject

managerswith“realizingvisions,”being“essential,”orbeing“changemakers”(seeFigure2).

It’salsorevealingthat,whileasignificant

RegionalSpotlight.

Perceptionsoftheprofessionarelargelysimilaracrosstheglobe.

However,thenegativityismore

concentratedinNorthAmerica,

whereprojectmanagershaveanimageofboxcheckingandnote-taking,andinLatinAmericawheretheprofessionismorelikelytobeassociatedwithbureaucratsandrulefollowers.

Figure2:PerceivedAttributesofProjectManagersAmongSeniorLeaders

Attribute*

%ofallseniorleaders(n=1174)

%ofseniorleadersinfront-runnerorganizations(n=105)

Problem-solvers

64

65

Relationshipbuilders

45

53

Changemakers

37

60

Creative

28

48

Essential

27

39

Realizingvisions

27

41

Flexible

25

38

Source:PMIandPwC.2021.

PMIandPwCGlobalSurveyonTransformationandProjectManagement2021

.

*Respondentswereprovidedwithalistof20wordsandphrasesandaskedtoselectthosethatbestdescribehowtheyseeprojectmanagers

NarrowingtheTalentGap6

TheCapabilitiesGap

Whenweaskedrespondentstoassesstheircolleaguesontheattributesthatweremostimportantforaprojectmanager,itrevealedacapabilitiesgapinallfiveofthemost

criticalareas,particularlycreativeproblemsolving.

Theabilityoftalentmanagerstomeasurebaselinecapabilitiesandanalyzegapsiscrucialinquantifyingtheneedforinvestmentanddesigningeffectivetalentmanagement

strategiestoclosethosegaps.Externalorin-housecapabilitiesassessmentframeworksandlearningneedsassessments,tailoredtoeachorganization’sneeds,willhelpto

systematicallygatherrelevantdataandinsights,andserveasvaluabletalenthealthchecks.

Figure3:TheCapabilityGap:TopFiveCapabilitiesofaProjectManager

Capability

%rankingintop

threecapabilities

ofaproject

manager(n=4069)

%whobelieveproject

managersintheir

organizationdonot

havethiscapability

(n=4069)

%offront-runnerswho

believeprojectmanagers

intheirorganizationdo

nothavethiscapability

(n=250)

Relationshipbuilding

34

16

4

Collaborativeleadership

32

19

4

Strategicthinking

25

20

4

Creativeproblemsolving

25

23

6

Commercialawareness

22

20

5

Source:PMIandPwC.2021.

PMIandPwCGlobalSurveyonTransformationandProjectManagement2021

.

7

NarrowingtheTalentGap

RecruitmentRethinkis

UrgentlyRequired

RegionalSpotlight.

Allregionsareexperiencingahiringchallengetoacertaindegree,especiallyLatin

America,SouthAsia,and

Europe.Chinaislesslikelytoexperienceissues,butoneinfiveorganizationsstillfindsrecruitingthesecriticalfiveskillsdifficult.

Worryingly,thetop-fivecapabilitiesthataremostimportantforstrategy

executionandarelackinginasignificantnumberofprojectmanagersare

alsocitedbyoneinthreerespondentsasdifficulttorecruitfor.Once

again,creativeproblemsolvingtopsthelist.Evenamongfront-runnersit’s

astruggletofindthesecriticalskills,albeittoalesserdegree.

Despitethesechallenges,mostorganizationsgloballyarestillrelyingon

traditionalapproachestorecruittalent.Althoughthey’reprioritizing

powerskillsandbusinessacumen,they’restillsearchinginthesame,

shrinkingpooloftalent.Only38%oforganizationsareactivelyworkingto

increasethediversityofcandidates,andonly15%seeupskillingyoung

peopleinunderrepresentedcommunitiesasapriority.Amongfront-

runners,thisrisesto47%and38%,respectively.

Figure4:TheRecruitmentGap

Capability

%rankingthisin

topthree

capabilitiesofa

projectmanager

(n=4069)

%ofhiringmanagers

%offront-runnerhiring

managersstatingthat

thiscapabilityis

difficulttofind(n=147)

statingthat capabilitydifficultto(n=1619)

the

is

find

Relationshipbuilding

34

29

23

Collaborativeleadership

32

32

26

Strategicthinking

25

32

18

Creativeproblemsolving

25

36

28

Commercialawareness

22

30

18

Source:PMIandPwCGlobalSurveyonTransformationandProjectManagement2021

Geographically,organizationsaremainlyfocusingonwheretheroleisbased—fourin10arerecruitinginotherpartsofthecountryandjustoneineight

outsidethecountry.Front-runnersarereachingoutfurthertorecruitprojectmanagers—almosthalfarerecruitingbeyondthearealocaltotheroleanda

quarterrecruitingoutsidethecountry.Only38%oforganizations—and45%offront-runners—are

embracingflexiblestaffingmodels,suchasusing

independentcontractors,part-timeemployees,and

temporaryemployees.Andonly50%of

organizations—comparedto58%offront-runners—offerflexibleworking,suchasjobsharing,remote

work,oralternativeworkschedules.Thismeans

they’reexcludingmanypotentialcandidates,includingwomen,whohavestruggledduringthepandemictocombineworkwithcaregivingresponsibilities.

NarrowingtheTalentGap

8

Thereis,ofcourse,atrade-offwhentappingintothegigeconomy—itwillhelptoalleviatehiringchallenges

butwillalsohaveanimpactonorganizationalknowledgeandlearning,andonprojectmanagementasacore

organizationalcapability.

Only18%oforganizationsand31%offront-runners

areworkingtoactivelychangetheimageofthe

profession.Giventhecompetitivehiringlandscape,andshrinkingtalentpool,nottakingactiontobetter

communicatethevalueofprojectmanagement

capabilities,bothinternallyandexternally,isahigh-riskstrategy.Manyalsoaren’tconsideringcandidateswhodon’thaveproject-relatedqualifications.Indeed,many

moreareincreasingtherequirementfortheirqualificationsthanthosewhoarereducingit.

Talentmanagerswillalsohavetoconsiderhow

technologywillimpacthiringneeds.Forexample,

whetherschedulingorcostestimationskillswillstillbeneededasmuchinthefuture,orifsuchtasksaregoingtobereplacedbyautomation.Currentlyonlyone-

quarteroforganizations—andhalfoffront-runners—areutilizingtechnologytoautomatelower-value

processes.Afurtherthirdexpectstouseautomation,alongwithothertechnologiesincludingartificial

intelligence(AI)andvirtualreality,morefrequentlyin5years’time.Talentmanagersneedtomonitorthistrendandbuilditintotheirstrategiesandforecasts.

InitiativestoIncreaseDiversityand

UpskillYoungPeople—SomeExamples

Localizedisanexampleofanappdesigned

tohelpconnectstudentsandrecent

graduateswithindustryexperts,employersandothertalenthubsintheMiddleEast.

https://www.localized.world

JPMChaseisinvestingincareereducationtocreatepathwaystowell-payingjobs

acrosstheUnitedStates.Summeremploymentopportunitiesforyoutharealsoprovidingearlyworkexperience.

TheCoca-ColaFoundation5by20programhasprovidedmorethan6millionwomenacrosstheglobewithaccesstobusinessskills

training,mentoring,andfinancialservicesorassets.

RegionalSpotlight.

InChinaandSub-SaharanAfrica,whereflexiblestaffingmodelsaremoretypical,findingthe

righttalentislesschallenging.

AttractingtheU.S.VeteranCommunityintoProjectManagementRoles

“Fortheveterancommunity,mentoringisveryimportant.Weknowwehaveskills

thatareverywellalignedfromaleadershipperspectiveforprojectmanagement,

buttherearegapsinthingsliketools,methodologies,andmanagingbudgets.Thechallengeisoftenthatwedon’tevenknowwhatisoutthereinindustrysowecantailorourexperiencetofindarole.Fortheveterancommunity,findingmentorsorevenadditionalsourcesofinformation,likevideosofinterviews,wheresomeone

explainsthedayinthelifeofanagileprojectmanager,constructionprojectmanager,etc.,wouldtrulyenableustomakebetterdecisions.”

MICHAELQUINN

CEO,HireMilitary&TenovaLLC,whichhelpsU.S.militaryveteranstransitionintoemployment

9

NarrowingtheTalentGap

ElevatingLearningand

Development

Ifcapabilitiesaren’talignedtoorganizationalstrategy,capabilitiesbuildingisn’tgoingtogettheattentionitdeserves.That’swhythenumberonebarrierto

developingprojectmanagercapabilities—citedby37%ofrespondents—isthatlearninganddevelopment

(L&D)isn’tenoughofastrategicpriority.Thisisthecaseevenfor28%offront-runners;beingseenasastrategicpartnertotheC-suiteiscertainly

important,butit’snosubstituteforsystematically

mappingcapabilitiestostrategicgoalsandcreatingaquantifiablebusinesscaseforinvestment.This

disconnectisobvioustoprojectmanagersthough,

withoverone-quartersayingthattrainingisn’talignedtoorganizationalstrategy.

Thisisanareathatfront-runnerorganizationsalso

needtoworkon—aquarterofthishigh-performing

groupalsoreportedalackofalignmentbetweentheirorganizationalstrategyandtheirL&Dactivities.

Soit’sperhapsnosurprisethatthebiggestshareofinvestment,accordingto40%ofrespondents,goestotrainingintools,processes,andmethodologies,ratherthanpowerskillsandbusinessacumenskills.Andnotably,just32%oforganizations—41%of

front-runnersprioritizethedevelopmentof

collaborationandmanagementskillsforremote

working.Yet89%ofrespondentshavehadtowork

remotelyinsomecapacitysincethepandemicbegan.Anduptoone-thirdsaythatdevelopingpowerskillsandbusinessacumenskillsisoneofthemostdifficultthingstodoremotely.

Lackofstrategicprioritizationisalsoevidentinhow

traininganddevelopmentisbeingdone,with

organizationslargelynotembracingadiversityof

learningpreferencesandopportunities(seeFigure5).Just29%oforganizations,forexample,offeron-

demand,microlearningtools,orencouragesocialand

Figure5:InitiativesUsedtoSupportRecruitment

Initiativetosupportrecruitment

%oforganizations

usingthismethod

(n=4069)

%offront-runners

usingthismethod

(n=250)

Promotingacultureofcontinuouslearning

51

72

Providingin-housecoaching,mentoring,andshadowing

44

63

Usingtechtofacilitateagile,innovative,continuouslearning

38

61

Providingteam-basedtraining

37

59

Partneringwithexternaltrainingproviders

34

52

Providingon-demandmicrolearningopportunities

29

45

Encouragingsocialandinformallearning

29

47

Adaptingtrainingtodiverseemployeeneeds

23

46

Source:PMIandPwC.2021.

PMIandPwCGlobalSurveyonTransformationandProjectManagement2021

.

NarrowingtheTalentGap

10

informallearning.Andonly38%usetechnologyto

facilitateagile,innovative,andcontinuouslearning.Yet

digitaltechnologiessuchasvirtualrealityare

particularlysuitedtoharder-to-teachskills,andcancreatepowerfullearningexperiences.Thefocusofdevelopmentisalsosquarelyonindividuals,with

team-basedtrainingoverlookedbynearlytwo-thirdsoforganizations;yetteamsarethebackboneof

projects,andarecriticaltoorganizationalsuccess.

It’snowonderthatrespondentshavealitanyof

complaints,chiefamongthemthattrainingisn’t

engagingenough(30%),isn’tofhigh-enoughquality

(29%),usesaninsufficientvarietyoflearningmethods(27%),andtakestoolong(21%).

Crucially,only22%oforganizationsmonitortheuseandprogressoftraining.Thiscouldindicatethat78%don’tknowwhetherL&Dprogramsareactually

improvingcapabilities—andexecutiveshavenoidea

whatreturnthey’regettingoninvestmentinthese

programs,whichinturnfeedsthelackofstrategic

prioritization.Italsocreatesnoincentivetoreview

andevolveapproachestotraining,whichiswhyonly

23%oforganizationsdoitregularly.Incomparison,

45%offront-runnersmonitortheirtrainingprogramsand51%regularlyreviewthem.

Organizationsalsoneedtogetcreativeabout

harnessingthepowerofstaffwhodon’thaveformalprojectmanagementtraining,manyofwhomare

alreadyresponsibleforbringinglower-riskprojectstofruition.Only13%ofrespondentssaythattraining

these“accidentalprojectmanagers”isgivenhigh

priorityacrosstheorganization—comparedto43%offront-runners.

11

NarrowingtheTalentGap

ACalltoAction

Themessageisclear:talent,projects,andstrategicgoalsareatriskunlessorganizationsinvestnowinbuildingwinningcapabilitiestogainacompetitiveadvantage.

.Takeittothetop:MaketalentmanagementaC-suitepriority,withclearalignmentofcapabilitiesandstrategicpriorities.

.Followthenumbers:Useasystematic,data-drivenapproachtoassessingkeycapabilities,identifyinggaps.andmeasuringprogress.

.Reinventrecruitment:Getsmarteratattractingtalenttoplugcapabilitiesgaps.

.ElevateyourL&D:Investinfosteringcriticalcapabilities,usingdiverselearningmethods.

.Monitor,evaluate,andmonitoragain:Reviewandevolvetalentstrategiesinlinewithfeedback,progress,andthechangingprioritiesofthebusiness.

FurtherReading:

PMI’sTalentManagementThoughtLeadershipSeries

reportsaboutbuildingproject

managementtalent.Itprovidesalotofgreat“how”suggestionsthataddressthe“what”and“why”opportunitiesandchallengesidentifiedinthisreport.

Acknowledgement

PwCandPMIwouldliketothankeveryonewhotookpartinthesurveyandinthequal

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