[Book] The Key to Corporate Growth is Talent Development! Success Rules for Training Systems and Skill Maps
This book is a practical guidebook for effectively building and operating corporate talent development systems. The authors, Suguru Kobayashi, Hiroyuki Yamada, and Kotaro Nozaki, provide concrete frameworks and solutions for the actual challenges faced by HR personnel, based on their extensive consulting experience.
The environment surrounding modern companies is changing rapidly. From the latter half of the 20th century to the beginning of the 21st century, the industrial structure shifted from an emphasis on hard capital to soft capital, and the value of knowledge workers increased significantly. Furthermore, in the era of "VUCA," representing Volatility, Uncertainty, Complexity, and Ambiguity, companies are forced to secure and develop talent that can constantly adapt to change.
In addition, with the spread of the concept of "human capital," investment in talent has come to be viewed not as a mere expense, but as an investment for growth. Trends such as ISO 30414 (guidelines for human capital information disclosure) and the mandatory disclosure of human capital in various countries have made corporate efforts toward talent development even more important.
As for the context unique to Japan, there are serious labor shortage issues, such as the decline in the working-age population that peaked in 1995, the plateauing of labor participation rates for the elderly and women, and the disadvantage in the competition for foreign talent due to the weak yen. As part of "New Capitalism," the government is promoting reskilling, the introduction of job-based employment, and the facilitation of labor mobility, and companies are also moving away from Japanese-style employment practices. Individual career awareness is also changing, and there is a tendency for younger generations in particular to feel motivated to resign if they feel their company is not enthusiastic about their skill development.
Against this background, talent development has become a strategic issue directly linked to a company's survival and growth, rather than just a welfare benefit. Based on this understanding of the era, this book systematically explains how to build effective talent development systems.
The Essence of HR Measures and the Positioning of Educational Measures
The essence of HR measures in a company is the "function of optimizing the quality and quantity of human resources (human capital) to realize management strategy." Management strategy is an action plan to bridge the gap between the desired future state (philosophy and vision) and the current situation, and its execution requires appropriate "organizational capabilities." Since the source of organizational capabilities is human capital, it is essential to strengthen and acquire human capital through HR measures such as recruitment, talent development, and evaluation.
Educational measures are broadly classified into "Off-JT (teaching)" and "OJT (nurturing)." According to the "70:20:10 rule," 70% of a person's growth is determined by direct experience on the job, 20% by the influence of feedback on that experience from superiors and others, and the influence of Off-JT such as training accounts for only 10%. However, this 10% also plays an important role; talent grows through a cycle of acquiring basic concepts in Off-JT and repeating practice and feedback in OJT.
This book focuses on how to formulate training systems in terms of Off-JT and how to utilize skill maps in terms of OJT. It details the points for building and operating systems that actually function in the field, with a particular focus on "not letting them become mere formalities."
Process for Formulating the Desired Talent Profile
The starting point for talent development measures is the formulation of the "desired talent profile." This talent profile is linked to management strategy, clearly indicates the image that all employees should aim for, and serves as the foundation for all HR measures.
The process for formulating the desired talent profile proceeds in the following three stages.
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Current Situation Analysis
As "things that do not change," confirm the management philosophy (basic ideology) and core competencies (core capabilities that other companies cannot easily imitate).
As "things that change," analyze management strategy and human capital issues in response to changes in the business environment. Derive human capital issues based on the company's growth stage (startup, growth, maturity, restructuring) and the strategic direction according to the Ansoff Matrix (market penetration, market development, product development, diversification).
Based on these, specifically describe the "actions especially required of employees," both externally and internally. Here, concrete descriptions conscious of the 5W1H are important, rather than abstract expressions such as "acting proactively."
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Talent Profile Design
As a "one-phrase talent profile," concisely express the required actions and expected results.
As more detailed elements, define them from four aspects: "basic skills" (general skills required regardless of job type), "technical skills" (specialized skills unique to the industry or job type), "knowledge" (knowledge that should be known), and "stance" (attitude toward work).
It is important to extract commonalities for these elements through interviews with executives and others.
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Setting Talent Development Policies
Based on the ideal talent profile, we will clarify the significance and content of 'learning' (Off-JT) and 'practice' and 'reflection' (OJT).
This is designed with an awareness of the experiential learning model (the cycle of concrete experience, reflective observation, abstract conceptualization, and active experimentation) in accordance with the '70:20:10 rule'.
By going through this process, an 'ideal talent profile' that is concrete and effective, linked to management strategy, is formulated rather than just an abstract ideal.
Building a Training System
A training system is an organization of what training will be conducted for employees, categorized by level, job type, etc. In STEP 2-1, we will formulate the Off-JT training system through the following four processes.
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Identifying Talent Strengthening Issues
We will confirm grade definitions and necessary skill requirements, and analyze internal environment strengthening points through value chain analysis and other methods.
We will clarify the functions and job types necessary to realize management strategy, as well as the issues for each level within them.
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Identifying Current Training Issues
From the three perspectives of 'who,' 'what,' and 'method,' we will identify training that is not currently being conducted but should be added, as well as training that should be changed.
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Designing a Training System
When designing a training program, three perspectives are important: consistency with strategy, alignment within the HR system, and selection and concentration.
While keeping in mind the points to note at each stage of training implementation (before, during, and after), we consider 'who is the target,' 'what is the purpose,' and 'how to implement it.'
The particularly important 'next-generation management leader development' is carried out in seven steps (creating a roadmap for succession planning -> defining talent requirements for successor positions -> selecting successor candidates -> development via Off-JT -> development via OJT -> monitoring development status -> support after nomination and appointment).
We also explain in detail about '360-degree surveys,' 'e-learning and LMS,' and 'selecting training companies.'
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Designing an Education Implementation Plan
We formulate an implementation plan from a medium-term perspective of about three years.
Regarding the order of implementation, the principle is to 'start from the upper hierarchy.' This is because if supervisors do not understand new concepts, the growth of their subordinates may be hindered.
A point to be particularly careful about when building a training system is to keep the '70:20:10 rule' in mind and not spend excessive time or effort on Off-JT. A balanced design is required so that HR personnel do not become 'training obsessed' and lose sight of the original purpose.
Building a Skill Map
A skill map is a tool for identifying the skills required for work and visualizing the skill proficiency of employees. In STEP 2-2, we will formulate a skill map as an OJT measure through the following five processes:
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Setting the Scope of the Skill Map
"Why": Clarify the purpose of the skill map (e.g., development, recruitment, placement, visualization of capabilities).
"Who": Determine the target levels and job categories. A small start with one or two specific departments is recommended initially.
"What": Decide the extent of coverage for skills, stances, and knowledge. Generally, it is desirable to keep the number of items between 10 and 30.
"How": Consider whether to link it with personnel evaluations. While linking ensures implementation, it may also distort evaluations.
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Identifying Tasks
Use a logic tree to break down tasks into MECE (Mutually Exclusive, Collectively Exhaustive) components.
For example, for a sales position, break it down into processes such as "List creation -> Relationship building -> Hearing -> Proposal -> Closing."
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Conducting Surveys and Interviews
With the cooperation of the field staff, identify the necessary skills for each business process.
While surveys allow for efficiently gathering opinions from many subjects, interviews provide deeper information.
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Creating skills and standards for each task
Select skill items and set their names. It is important to keep the number of items between 10 and 30.
When creating skill definition statements, it is best to include 2 to 3 perspectives for each skill. This makes evaluation easier.
Have the field test it during the prototype stage, then gather feedback and make revisions.
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Finalizing evaluation methods and creating manuals
Determine operational rules such as evaluation stages (usually 4-5 levels), evaluation sheet items, evaluators, interview frequency, and linkage with evaluations.
Establish rules for managing and revising the skill map, and set up a system for periodic reviews (about once a year).
Create a skill map manual that summarizes these points.
The key to building a skill map is to incorporate feedback from the field while narrowing down the items to ensure it is practical and requires minimal operational effort. Additionally, it is possible to create them efficiently by utilizing existing resources such as the Ministry of Health, Labour and Welfare's "Vocational Ability Evaluation Standards" or the IPA's "Digital Skill Standards," as well as generative AI (ChatGPT).
Operational points and measures to prevent formalization
In STEP 3, we explain operational points to ensure that the training system and skill map you have built do not become "mere formalities."
Operational points for training systems
It is important to monitor the training system periodically and review or update it as necessary. Set the following indicators as KPIs (Key Performance Indicators) and observe them at fixed points:
Employee training satisfaction
Number of training participants and participation rate
Training costs (educational investment amount)
Training and learning time
Number of skill and qualification holders
Achievement level of development plans
Regarding "employee training satisfaction" in particular, it is important to collect real voices from the field through interviews and organizational surveys. If the training system is insufficient for achieving the intended goals or if there is significant dissatisfaction regarding talent development, consider reviewing the training system.
Operational points for skill maps
Six points are listed to ensure that the skill map does not become a mere formality:
Start small: It is important to start small by narrowing down the purpose of the measures, introducing them in only 1-2 departments, and limiting the number of skill items.
Conduct alongside personnel evaluation interviews: Instead of setting up separate interviews, incorporate them into evaluation interviews to reduce the burden on the front lines.
Create skill development goals and growth plans: Increase motivation by linking skill maps with career development plans (Will-Can-Must).
Strengthen managers' feedback skills: Ensure thorough recording of facts that serve as the basis for evaluations, adherence to appropriate interview procedures, and awareness of evaluation errors (such as the halo effect).
Link with training systems: Create a correspondence table for personnel evaluation items, skill map items, and training programs, and operate them in an integrated manner.
Regularly update skill maps: Since the skills required for work change over time, it is appropriate to review them about once a year.
These points address common concerns such as "the operational burden is too high, leading to a mere formality," "front-line motivation does not increase," and "managers cannot evaluate skills correctly."
Furthermore, as the use of skill maps expands, it can be considered for integration into talent management systems. This allows for the comprehensive and centralized management of each individual's stance, skills, knowledge, experience, and behavior, enabling efficient utilization and development of human capital.
The Essence of Talent Development Systems
This book emphasizes the idea that "personnel systems are 30% design and 70% operation." No matter how excellent a system is designed, it will not be effective if its operation is not appropriate. And the key to operation is collaboration with the front lines.
To prevent it from becoming a mere formality, it is required to think about content and methods that are easy to execute and feel effective, based on the reality of the front lines—not just the "ideal state" of the system—and to proceed with operations together with the front lines. By deepening their understanding of management strategy and front-line operations, rather than just staying within the HR domain, HR personnel can build and operate more effective talent development systems.
Also, talent cannot be developed through talent development systems alone. It is important that the entire personnel system, including educational measures, grading systems, evaluation systems, and compensation systems, is aligned with the desired talent profile and optimized as a whole.
This book provides numerous diagrams and concrete examples as a practical guide for HR personnel to build and operate realistic and effective talent development systems, making it a volume packed with knowledge and methodologies that can be used starting tomorrow.
Significance and Practice of Training Systems and Skill Maps from the Perspective of Corporate HR
Considering this book further from the perspective of corporate HR, several important viewpoints and practical challenges emerge.
Responsibility as a Bridge Between Management Strategy and HR Measures
We in the HR department always play the role of translators between the "language of management" and the "language of the front lines." We must translate the strategic goals set by management into concrete HR measures and further convert them into programs that the front lines can execute. The most difficult point in building training systems and skill maps is this translation process.
How to break down abstract talent profiles sought by management, such as "innovative talent" or "talent with a global perspective," into concrete skill sets, what kind of training to use to develop them, and what kind of OJT to use to practice them. If this breakdown is insufficient, the investment in talent development will lead to complaints such as "I don't know what the training is for" or "it cannot be applied to front-line work."
Prioritization under resource constraints
Corporate HR departments are constantly facing resource constraints (budget, time, and personnel). Ideally, one would want to develop comprehensive training systems and skill maps for all levels and departments, but those resources are limited. The concepts of 'selection and concentration' and 'small starts' presented in this book are highly practical.
The approach of 'selecting a pilot department, creating a success story, and then rolling it out company-wide' feels effective. I believe that not trying to make everything perfect from the start, but rather gradually developing it while cycling through PDCA (Plan-Do-Check-Act), is the way to maximize the use of limited resources.
The difficulty of designing a system that people will actually use
A common concern raised by HR departments is the problem that 'the systems and mechanisms created with such effort are not used in the field.' Training systems and skill maps are no exception. Even if you create a theoretically perfect mechanism, if the field feels it is 'troublesome' or 'does not match the reality of our work,' it will inevitably become a mere formality.
To solve this problem, 'designing while involving the field,' which is also emphasized in this book, is the key. Processes such as field interviews during skill map creation, prototype test operations, and collecting feedback are not just for information gathering, but also for fostering a sense of ownership among those in the field.
Also, efforts to minimize operational burden are important. Thoroughly pursuing 'ease of use'—such as integrating HR evaluation interviews with skill map interviews, creating simple and easy-to-use formats, and utilizing digital tools—reduces the burden on the field and enables continuous operation.
Data utilization and response to human capital information disclosure
In recent years, a role required of HR departments is the collection, analysis, and utilization of talent data. Training systems and skill maps are not just talent development tools, but also sources that generate important talent data. You can obtain data that can be used for strategic talent placement and recruitment planning, such as the skill distribution of the entire organization, visualization of strengths and weaknesses, and gap analysis with skills that will be needed in the future.
Furthermore, against the backdrop of mandatory human capital information disclosure, accountability to investors and external stakeholders is increasing. Developing training systems and skill maps is an important foundation for disclosing information such as 'what kind of skills our talent possesses and how much' and 'how much we are investing in talent development.'
Ensuring the ability to respond to change
As changes in the business environment accelerate, the skill sets required of talent are also changing rapidly. Job types and skills that did not exist a few years ago (such as AI prompt engineers and digital marketers) are being created one after another, and the speed at which existing skills become obsolete is increasing.
In such a situation, training systems and skill maps must also be designed and operated as 'things that continue to evolve' rather than 'fixed things.' In addition to annual reviews, flexible responses are required, such as conducting ad-hoc reviews at important turning points like the introduction of new technologies or changes in business strategy.
Practical considerations and tips for implementation
Here are some practical tips for actually building and operating training systems and skill maps:
Gain the understanding and support of management: It is important to show management in a persuasive way, using figures and data, that talent development is a long-term investment, not a short-term cost. Especially in OJT for developing next-generation leaders, resistance to temporarily removing talent from the field is expected, so the support of top management is essential.
Involve key stakeholders: The key to success is to involve not only the HR department but also business department heads and field managers from the beginning, and to proceed as co-owners. Gaining the approval of influential middle managers, in particular, will make penetration into the field smoother.
Visualize and share success stories: By sharing what kind of results were actually achieved as a result of using the skill map as a concrete story, you can help people realize the effectiveness of the system. Sharing examples such as 'Person A used the skill map to identify weaknesses, took supplementary training, and as a result, was able to achieve results in XX work' is effective in preventing the system from becoming a mere formality.
Utilize technology: By effectively utilizing Learning Management Systems (LMS) and talent management systems, you can reduce the burden of operation and streamline data collection and analysis. However, care must be taken so that the introduction of the system itself does not become the goal.
Establish a continuous improvement cycle: It is impossible to start with a perfect training system or skill map. Rather than aiming for perfection from the start, it is important to establish a cycle of continuous improvement. Set up regular review meetings and mechanisms for improvement proposals.
Summary: Attitude as an HR professional
Finally, I would like to state the mindset required for HR professionals working on talent development through training systems and skill maps.
We in the HR department are professionals who support corporate value creation through 'people.' Our true purpose is not to 'create systems,' but to 'foster the growth of people and organizations and contribute to the realization of management strategy.' To achieve this, it is essential to have not only HR expertise but also a deep understanding of management strategy and business content, insight into the realities of the workplace, and above all, a passion for 'human growth.'
I hope we can approach training systems and skill maps with the perspective that they are not just 'systems' or 'tools,' but 'places for creation' and 'promoters of dialogue' to support the growth of people and organizations. To ensure these do not become empty formalities, the true professionalism of corporate HR lies in constantly asking, 'Is this initiative truly leading to human growth?' and 'Is it contributing to the realization of management strategy?'
