Development of a Competency Matrix - Case Study Example

OPERATIONS MANAGEMENT; THE CASE OF UNDER MILKWOOD PTY LTD Name University Course Tutor Date Operations Management; the case of Under Milkwood Pty Ltd Management Summary Under Milkwood Pty Ltd refers to an outsized company, specialized in computer gaming services, boasting of an estimated number of 10 computer games either under maintenance or on the market. The company is also characteristic of supporting four online games, having server firms in London, Sydney, and Los Angeles. Currently, the company exhibits four games under direct development alongside three outsourced games. Under Milkwood Pty Ltd has the capacity of employing 400 individuals with Dylan Thomas being the company’s current CEO. In terms of products, the company exhibits specialization in writing of games for Microsoft’s Xbox, PCs, and Nintendo GameCube. There is a wide range of real Time Strategy games, First Person Shooters, and action games; ideally, these action games are normally designed for pre-teens. Notably, the company has two online games categorized as ‘persistent role playing games’, with the other two games hosted by the company being under the category “BattleNet”. The company does direct sale of games over the internet and via distributors. In addition, the company provides its customers with a website for purchase and upgrades. One of the strengths of the company is the attempt to keep in touch with customer base, significantly attributing to its success. Table of Contents Management Summary 2 Table of Contents 3 Scope 4 Statement of Need 4 Objectives 5 Details of the Proposed Project 5 Competency Matrix 6 BTOPP Matrix and the development of a Competency Matrix in Under Milkwood Pty Ltd 7 Extension of the Competency Matrix to all of Under Milkwood’s software and hardware staff 11 Risk Analysis 12 Summary of Benefits of the Proposed Competency Matrix 13 Recommendations 13 References 14 Scope The proposal will cover an entire matrix for the Operations management Department’s staff. It will thus state the problem to be solved by the proposed project, objectives of the project, a detailed argument for and against the project, plans and cost to be incurred in the development and implementation of the project. The proposal will also cover BTOPP and risk analysis of the project, expected benefits, alongside recommendations for future improvements. Statement of Need As it is the case with several business organizations, Under Milkwood Pty Ltd is faced by a number of complexities regarding IT Operations Management. It has, essentially been found out that there is no maximum utilization of the company’s staff. Consequently, there is need for the development of a competency matrix in the department of operations management. The company has to develop such a matrix with the capability of utilizing its staff in a more productive manner. The development of this matrix is subject to collaboration between the company’s Operations Department and the Investment Review Board. It is of much essence to explore ways via which resources and time needed for development and implementation of the project will be minimized. This has the implication that human resources and software need for this project ought to be found. In addition, there also the need to find the most outstanding packages and staff for effective data management, in the course of development, and after the implementation of the project. Objectives The proposed project will have the objective of developing a competency matrix for the Operations Management Department’s staff of Under Milkwood Pty Ltd. Ideally, the project will be aimed at making better utilization of the staff of this company’s department. This has the implication that this report has the following objectives: Making the Investment Review Board understand the essence of outstanding staff for Operations Management Making the Investment Review Board understand the essence for the development of a contemporary Competency Matrix Understanding the essence of staff development Details of the Proposed Project The Operations Management Department of Under Milkwood Pty Ltd ought to have competent staff for reliable operations, new capabilities, and maintenance. Reliable operations are inclusive of timely repair of systems; new capabilities are inclusive of installation of new hardware; where else, maintenance basically refers to upgrading of existing systems in the company. Competent staff is also essential for this department for the purpose of installation and operation of new systems, integration of skills, alongside the consumption of materials. In such a business organization as Under Milkwood Pty Ltd, competent Operation Management Staff will be essential to offer the necessary professional support to the HR. The company has to; therefore, explore the need of HR for the Operations management Department alongside the essence of managing staff for the Operations management Department. Competency Matrix The need to have competent staff in the Operations Management Department of Under Milkowood Pty Ltd, calls for the development of a Competency Matrix as proposed in this report. Ideally, a Competency Matrix refers to level of skill and a match of competencies required for the completion of all tasks in an organizational department. In this case, the level of skill can be advanced, medium, or beginner (Aalders & Hind, 2003). On the other hand, match of competencies may be programming or project man. In order to develop a contemporary Competency Matrix, Under Milkwood Pty Ltd faces such requirements as internal business processes in the department of Operations Management, service level agreements, and research regarding to the required skills in the field of Information Technology. There is also the requirement of business processes that are external to the Operations Management Department of the organizations. The Competency matrix to be developed by Under Milkwood Pty Ltd will be subject to review by the review staff which has such roles as the creation of current staff competency matrix, matching up required competencies with current staff competencies, alongside developing plans that are aimed at acquiring or training staff to meet the proposed matrix. In addition, the competencies of staff in the Operations Department will be reviewed regularly to ensure that they standards set the by the Competency Matrix (Schiesser, 2010). BTOPP Matrix and the development of a Competency Matrix in Under Milkwood Pty Ltd BTOOP is an abbreviation for “Business, Technology, Organization, Process, and People” which is a system that helps business organizations get a clear insight into business systems thus the creation of sound programs in the organization (Aalders & Hind, 2003). In the case of Under Milkwood Pty Ltd, the BTOPP matrix will be essential in the development of a Competency Matrix that will achieve the intended objective of achieving better utilization of the staff in the Operations Management Department. The first element of the BTOPP framework is Business; ideally, as it is the case of all technologies, emergent information technologies ought to exhibit alignment with market opportunity or need. Ideally, they ought to match an internal information need. This will have an advantage of enhanced value chain leading to the product consumers. According to this component of BTOPP all planned IT applications ought to have a close link with the business strategy (Jones & Robinson, 2012). Via the use of the BTOPP framework, Under Milkwood Ltd will identify the program that will match the proposed Competency Matrix with market opportunity and need. To this effect, the company ought to develop a Competency Matrix to enable it fully utilize its staff to enhance the current market opportunity. Notably, Under Milkwood Pty Ltd has identified a market opportunity in approximately 10,000 online gaming customers. The company also ought to focus on how to utilize its staff with an objective of extending the current business opportunity of 2.5 million products sold annually. The current business opportunity of Under Milkwood Pty Ltd is also indicated by the company’s performance of the previous year. According to the last year’s financial data, the company recorded a turnover of $7.6 million, and $15 million, $100 million, and $3.50 of profit, debt, and share price respectively. Therefore, an analysis of the BTOPP framework of Under Milkwood Pty Ltd will assist the Operations Management Department of the company develop a Competency Matrix that will convince the Investment Review Board for implementation. A Competency Matrix ought to have the capability of utilizing the department’s staff to expand the business opportunity currently enjoyed by the company, in order to be acceptable by the Investment Review Board. The second element of the BTOPP framework is technology according to which the installed hardware ought to have corresponding functional software and ability to disseminate information to the right people, in a timely manner (Grant, 2008). The proposed Competency Matrix will have strength of matching the staff of the Operations Management Department with the latest technology expected to be in use in the gaming industry. The computer gaming industry, ventured by Under Milkwood Pty Ltd is extremely dynamic faced by stiff competition especially in the aspect of technology. The product consumers in this industry are generally young educated people who tend to draw an immense deal of influence of technological advancements. It would be rather a waste of resources to make technological advancements in the absence of potential human resources to handle the ever changing Information Technologies. Currently, Under Milkwood Pty Ltd products are available on platforms that use Microsoft, Unix, GameCube, Linux, and Xbox operating systems. In terms of desktops, the company has 300 PCs, 150 Performance desktops, and 20 special desktops. The proposed Competency Matrix has the capability of matching the abilities of the staff in the Operations management Department with technology supported by these OS platforms and desktops. The new Competency Matrix of the company will also expand on the server technology currently possessed by Under Milkwood Pty Ltd. Currently, the company has 40 servers which supports internet access in an almost 24/7 basis. Current data also indicates that the company ahs 10-Megabit Internet Connection Networks and 120 network devices. This network serves company’s premises housed in two buildings besides connections served by overseas server firms. In order to fully utilize the current staff, the company will be expected to extend on the current technological base. For instance, more current platforms of operating systems will have to be acquired, alongside the acquisition of high performance desktops and internet servers. There also ought to be a shift from the use of desktops to more current digital devices. The third element of BTOPP framework is organization according to which organizations ought to be framed in a structure that draws the best from their Information Technology bases (Barnes, 2008). This has significant effect on facilities of customer service, work teams, and offices. The company will, therefore, have to be organized in a manner that supports the best delivery of the Operations Management Department. In the proposed Competency Matrix of Under Milkwood Pty Ltd, staff ought to be matched to technologies that support more decentralized organizations. For instance, the company’s premises ought to be expanded from the current two buildings to achieve a high level of decentralization (Colvin, 2000). Business studies indicate that decentralizations enhance the convenience with which employees work with thus increases performances of individual employees, and overall performance of the company. Integration of skill, within an organization, can easily be achieved by the use of employees from diversified backgrounds. Under Milkwood Pty Ltd faces significant challenge, with respect to the use of employees from diversified backgrounds, as a result of lack of extensive decentralization. The Operations Management Department thus proposes the set up of more company premises in order to increase decentralization. This has the implication that the company ought to make purchases of more hardware and software, alongside the acquisition of more sophisticated networks. The fourth element the BTOPP framework is process according to which an organization ought to engineer its business processes targeting end-to-end delivery of service; this also has recognize and integrate emergent IT capabilities. In subsequent moments, the organization ought to re-engineer these business processes to cope with the changing conditions of the industry. In order for the business of Under Milkwood Pty Ltd to remain relevant, business processes will have to be adjusted with work procedures and management practices being main aspects. This explains why the Operations Management Department of the company proposes a new Competency Matrix to enhance the productivity employees. With the ever changing IT business environment, the company will be expected to make adjustments in such business operations as marketing, sales, and production. The proposed Competency Matrix has the capability of increasing the company’s sales via more use of Web and indirect sales. This proposal, therefore, calls for more advanced web servers to support a high volume of web sales; and the establishment of international locations to enhance the company’s indirect sales. With respect to production, the Operations Management Department of the company proposes upgrading of the company’s websites, increased games sites; more software uploads, and increased external server farms. The foremost adjustments will enable the company’s staff to exploit emergent business opportunities thus giving their best output towards the company’s service delivery. The fifth element of BTOPP framework is people which, in the context of Under Milkowood Pty Ltd’s Competency Matrix refer to employees in the Operations Management Department of the company. In order to fully utilize employees in the Operations Management Department, the company will have to ensure that all the staff members are comfortable with all the software used by the company (Fitzsimmons & Fitzsimmons, 2004). This calls for a high frequency of training programs for employees to match their skills with the latest technologies. Indeed, training going on within the company ought to match the pace of technological evolution. Ideally, the proposed Competency Framework of the company will achieved the highest level of skills among the staff in the Operations Management Department of the company, hence increased efficiency of service delivery, reduced wastage of time resources, and increased output from individual employees. Extension of the Competency Matrix to all of Under Milkwood’s software and hardware staff The extension of the Competency Matrix to all of Under Milkwood’s staff is subject to a number of procedures. Firstly, the company ought to carry out an identification process for the outstanding staff. The achievement of such identification could be subject to two aspects which are attitude and aptitude of employees. The establishment of the former is subject to the level of eagerness of staff members with respect to learning of new skills, ability to stick to new procedures, and ability to be a team player. On the other hand, the determination of aptitude could be subject to the ability of an employee to integrate existing skills. This process has the advantage of identifying employees who can easily cope with the adjustments coming alongside the new Competency Matrix. It, however, has the demerit of the likelihood to increase employee turn over in the company. Training and provision of user manuals will be an effective way of ensuring that Competency Matrix is available to all hardware and software staff of Under Milkwood Pty Ltd. This process enhances individual employee skills alongside enhancing employee retention. However, it could add to the operational expenses of the company hence less sustainability of the company’s business. Risk Analysis In the development of a current Competency Matrix for Under Milkwood Pty Ltd, the company’s Operations Management Department ought to keep into consideration that a number of risky factors are imminent. These risky factors serve the argument against the proposal, but mitigation procedures could be employed to uphold the viability of the proposal. Firstly, the Competency Matrix expected to achieve the highest level of skills in the Operations management Department could result to a high employee turn-over as a result of advancement of technologies. This can, however, be alleviated via the use of training programs which will match the skills of all employees with the evolution of technology (Crainer, 2000). Secondly, in the development of a current Competency Matrix, the company faces the risk of incurring too much cost. This has the implication that the implementation of the project could be done in a manner that may not be sustainable (Hanke & Dean, 2009). In order to evade such a situation, the company has to carry out a thorough cost-effective analysis in order to establish the financial sustainability of all the proposals contained in the report. Summary of Benefits of the Proposed Competency Matrix The implementation of the proposed competency matrix of Under Milkwood Pty Ltd will enhance value chain leading to the product consumers and link the business with new IT applications. The current market opportunity of the company will also be increased translating to more sales of products and thus enhanced profits. Upon implementation, the Competency Matrix will result to adjustments of business processes in the company at the pace of technological evolution; the company will, therefore, be able to compete adequately with companies that provide similar services. The level of skills of employees will be upheld at advanced grade; consequently, there will be low employee turn over hence less expenses incurred in the recruitment and training of employees. Recommendations It is recommended that the Investment Review Board of the company carry out a thorough evaluation of the proposed project to establish the potential benefits and possible risks. The company also ought to make use of its financial department staff to ensure that proposals contained in the report are achieved at lowest cost possible. Once the Competency Matrix is implemented regulars reviews ought to follow to ensure that employee skills and competencies match with the ever changing IT business environment. In addition, more feasibility studies ought to be carried out to explore ways via which more utilization of the company’s employees can be achieved. References Aalders, R. Hind, P., 2003. The IT Manager's Survival Guide. Hoboken: John Wiley & Sons. Barnes, D., 2008. Operations Management: An International Perspective. Stamford: Cengage Learning EMEA. Colvin , G., 2000. “Managing in the Info Era.” Fortune, pp. F6–F9. Crainer , S., 2000 . The Management Century. New York: Jossey-Bass. Fitzsimmons , J. & , Fitzsimmons, M., 2004. ServiceManagement, 4th ed. New York: McGraw Hill /Irwin. Grant, R., 2008) Contemporary Strategy Analysis, 6th Edition. Malden, MA: Blackwell Publishing. Hanke , E. & Dean W., 2009. Business Forecasting, 9th ed. Upper Saddle River, NJ: Pearson Prentice-Hall. Jones, P. & Robinson, P., 2012. Operations Management. Oxford: Oxford University Press. Schiesser, R., 2010. IT Systems Management. New York: Pearson Education. Read More