Crafting an Agile Talent Management Strategy in the Age of
Transcript of Crafting an Agile Talent Management Strategy in the Age of
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Crafting an Agile Talent Management
Strategy in the Age of Talent
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Today’s Agenda
• Introduction - 5 minutes
• Feature Presentation and Q&A - 50 minutes
• Wrap Up and Tour of Track Page - 5 minutes
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Today’s Moderator
Christine Abbatiello, Director
Talent Strategy Community
Human Capital Institute
www.humancapitalist.org
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Bloghttp://www.thetalenteconomy.com
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Today’s Guests
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Dr. John Sullivan, CEO
Dr. John Sullivan & Associates
Master Burnett, Managing Director
Dr. John Sullivan & Associates
CRAFTING AN AGILE
TALENT MANAGEMENT
STRATEGY…
IN THE AGE OF TALENT
Human Capital Institute - December 2, 2009
Dr. John SullivanAuthor, Professor and Advisor to Management
www.drjohnsullivan.com
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Goals for today
�To understand how changing economic factors
and a more dynamic business environment are
forcing top firms to reassess their traditional talent
management strategies
�To highlight some of the key elements and
action steps related to building an “agile talent
management strategy”
�To answer your questions (Please ask questions
at any time using the Q&A module.)
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Topics I will cover
Some quick definitions…
Why – Reasons why you must shift your strategy
What – What are the key elements of an agile talent
management strategy
How – Some action steps to take in order to begin
the transition
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What is agility?
�Agility – Nimbleness and the ability to move
quickly
�Not-agile – Stiffness, inflexibility and having
only a single rigid approach
�A business definition of agility – The ability to,
in a coordinated manner, rapidly and accurately,
shift your focus and resources away from low
ROI areas towards areas of higher return in order
to meet new challenges and opportunities.
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Definition –Agile Talent Management Strategy
�An advanced talent management strategy that is
designed to increase the overall productivity
and capabilities of the corporate workforce.
�It accomplishes that by providing the capability
to rapidly shift, in a coordinated manner,
talent management approaches, tools and
resources… in response to the dynamic
economy, talent marketplace, and changing
needs of your major business units.
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Definition –Agile Talent Management Strategy
�Generally requires a significant increase in the
use of contingent workers and alternative
labor types
�Emphasizes rapid shifts in resources between
talent management processes including…
recruiting, retention, development, redeployment,
and releasing “surplus” talent as business needs
fluctuate.
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There are changes in the business world
that are forcing talent management to adapt
These changes include…
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Changes in the business world are impacting TM
1. Intense global competition, a demand for
continuous innovation and rapid copying
require a dramatic increase in the need for
organizational agility, i.e. faster speed of
change and increased innovation throughout the
business
- Because every business processes is
interconnected, every function (including talent
management) must equally adapt in order not to
slow down the rest of the business
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Changes in the business world impacting TM
2. The work changes – the demand for speed &
innovation requires business processes to rely
more heavily on technology and knowledge
workers (transition away from “muscle” work)
- Because both technology and knowledge evolve
and become obsolete so rapidly, the work that
needs to be done, the skills required to do it,
and the type of talent a firm needs also change
rapidly
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Changes in the business world impacting TM
3. The economy has recently suffered more
frequent and more severe ups and downs
- This new “dynamic” economy requires all
business strategies, plans and processes to be
more agile and capable of fast and accurate shifts
in approach and resource allocation
Is it possible that the economy is becoming
“permanently” more dynamic and fast-
changing?
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Have the economy and the talent market
been stable during the last decade?
� War for talent
� Dot com crash
� Mass layoffs
� Oil and commodity prices
� Global competition
� Enron, WorldCom…
� Outsourcing & Offshoring
� Hiring freezes
� Financial/mortgage crashes
� More mass layoffs
Can we all agree…we failed in the past
CEO’s / CFO’s want smoother ups & fewer downs
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Do you agree?
Given the dynamic nature of the economy and the
increasing speed of change in business, do you
agree with Charles Darwin that in the future…
“It is not the strongest of the species that
survives, nor the most intelligent,
but rather the one most responsive to change.”
--Paraphrase of writings by Charles Darwin
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First, I will highlight the differences between…
traditional and Agile Talent Management
Strategies
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The traditional approach to talent management
Characteristics of traditional TM
� The majority of firms don’t have a defined and distributed
talent management strategy (Could your executives even
put a name to yours?)
� If they have a talent management strategy, it is static and only
revisited every 3-5 years
� Most have only three modes of operation… growth, cost
containment (freezes) and reductions
� Most shift between the three modes depending on the
available budget or “when they are told/ forced to by
others”
� Most have no formal competitive analysis process
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Factors that should cause your strategy to “shift”
Five Factors:
1.Changing internal business needs (i.e. the need to
cut labor costs, the need to rapidly add talent to meet
expanding business goals, the life cycle stage of the
business unit, and a need for new product
development or global expansion)
2.Changes in external economic factors (i.e.
changes in the unemployment rate, interest rates,
labor quality etc.)
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Factors that should cause your strategy to “shift”
3. Changes in the relative “power” of talent (i.e.
supply and demand)
4. As talent interests relating to motivational
factors and desire for long-term employment
change (i.e. talent centricity)
5. Changes in a competitor’s talent management
strategy (i.e. rapid hiring, freezes, layoffs,
employer brand building, instituting social
network recruiting etc.)
Region 4 – Shifting Approach as Factors Change
TM Shifts Needed
Business
Unit Needs
Environmental
Factors
Talent
Power
Talent
Interests
Competitor
Actions
Sourcing Approach
Development Emphasis
Internal Movement Rate
Reward Systems
Retention Strategies
Contingent Labor Rate
Innovation Drivers
Skill/Competency Profiles
Reductions in Force
Employer Branding
Cost Containment
Candidate Experience
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The 10 key elements of an agile TM strategy
1. It has six measurable goals:
– provide a corporate competitive advantage
– Increase workforce productivity (ROI)
– Increase production capacity (more volume)
– Improve workforce capability (do new things)
– Improve innovation
– Increase speed of adaptation
2. It is forward-looking and anticipates an
expected range of upcoming changes (problems
and opportunities)
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The 10 key elements of an agile TM strategy
3. It is an integrated strategy to ensure that the
required shifts are simultaneous and coordinated
among all talent management related functions
4. It is a data-driven strategy, decisions are based
on data and facts, rather than tradition or past
practice
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The 10 key elements of an agile TM strategy
5.It is prioritized and it focuses its time and
resources on… the highest impact business units,
jobs, critical skills, regions and individuals
6.It is not “permanent employee” centric. It
instead frequently utilizes “alternative” labor
sources, based on the duration of their need, their
availability, their cost and their capabilities
(Alternatives include part-time, seasonal,
outsourced, retirees, customers and contract labor)
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The 10 key elements of an agile TM strategy
7.It is aggressive. It aggressively utilizes the latest
talent management tools and approaches in order
to “dominate” the talent marketplace
8. It utilizes a customized model, where a “one size
fits one” approach is utilized… to ensure that the
strategy, tactics and approach precisely fit the
business cycle, the region and the business unit
needs (Capital One)
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The 10 key elements of an agile TM strategy
9. Because it is supported by a continually updated
business case, it is better funded. It is also
“multiyear funded”… because talent
management shifts must begin before corporate
revenues actually change (Microsoft)
10.It is derived from the best elements of other
successful business models including…
inventory management, customized production,
CRM and supply chain
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Step #1
Benchmark the best practices from leading firms
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Benchmark firms to learn from include:
� Capital One – virtual if/then simulations, variable
timeframe with BU, 20 person team
� Microsoft – 3 year recruiting funding window, business
cycle placement, contingent worker mgmt
� Google – statistical algorithm for forecasting who will
quit, strong contingent workforce
� City of Sunnyvale, CA – 5 year workforce model
� The US military
� Valero Energy
� Wal-Mart (Inventory control processes)
Best practice examples in agility
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Step #2
Develop a contingency workforce capability
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Develop a contingency 5 petal “shamrock” model
Full time employees
Consultants
and vendors
Outsourced workFormer employees
Temp, PT &
contractors
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Develop a contingent/alternative labor capability
Develop a contingency process for:
�Identifying the alternative types of labor
�Assess the benefits and weaknesses of each of
the various “types” of labor
�Using historical records and benchmarking try to
develop a process that identifies which type of
labor has been or could be the most effective for
each type of work or family of jobs
�Develop a feedback loop to continually improve
your “labor type” selection process
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Develop a contingent/alternative labor capability
Some of the various “types” of labor included:
�Permanent part-time workers
�Peak time and seasonal workers
�Temporary part-time workers from agencies
�Retirees that can still contribute
�Contract workers
�Consultants
�Remotely located workers
�Offshored employees
�Shared labor at strategic partners
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Develop a contingent/alternative labor capability
More flexible “labor choices” to consider:
�College interns
�Imported workers with visas
�Internal “free time” projects (Bid on by employees)
Labor substitutes to consider:
�Outsourced work
�Technology and software substitutes for labor
�Corporate alumni that help with referrals
�Contests both internal and external
�Customers that provide feedback/ideas (IBM & P&G)
Some firms consider “moving” the work
Business impact needed -
18% increase in order quality & a 32 sec decrease in delivery time
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11 Action steps for building the agility plan
1.Build the business case – work with the CFO in order to develop a process for quantifying the business impacts of the increased agility
2.Prioritize – develop a process for prioritizing business units, skills, jobs, regions and individuals & then for customizing TM approaches to fit them
3.Develop a workforce plan – develop a long-term workforce plan identifying future needs and the potential supply. In addition, develop a short-term “explode out of the box” plan for when the economy turns around
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11 Action steps for building the agility plan
4. A shifting process – a process must be developed to identify “when” to make a shift and “where”resources should be increased or decreased
5. Integrating and coordinating – develop a process for ensuring that all related talent management functions act in unison
6. Metrics and rewards – metrics and analytics must be developed to track in real time the effectiveness of the agility process. Rewards must also be made available to those that successfully adjust to meet changing needs
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11 Action steps for building the agility plan
7.Competitive analysis – develop a process for comparing your talent management strategy and tools to those of your competitors. Make sure that the process can identify when your competitor’s are hiring and releasing talent
8.An alert system – develop a process to identify and then alert managers about upcoming problems and opportunities, so that they have time to act
9.Best practice sharing – a processes must be developed to identify and share agility related best practices and problems
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11 Action steps for building the agility plan
10.Identify barriers – develop a continuous process for identifying and then minimizing barriers to agility and rapid change
11.Require an agility component – require that all new and revised talent management plans, programs and processes include an agility component prior to approval or budgeting
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8 TM processes that require additional agility
1.Buy vs. build – develop a process for shifting resources away from recruiting full-time employees during slow growth periods and instead shifting resources toward employee development and internal movement
2.Retention capability – develop a process that intensifies retention efforts when unemployment rates are beginning to decrease and when your turnover rates among key employees are increasing
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8 TM processes that require additional agility
3. Sourcing strategies – revitalize employer referral and employer branding efforts and develop a process for examining emerging sourcing tools. Also develop “counter cycle”hiring processes in order to “cherry pick” the available talent when others aren’t recruiting
4. A SWAP process – develop a talent SWAPprogram where individual poor performers are replaced with external hires whenever recruiters find suitable top candidates (Slide)
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8 TM processes that require additional agility
5. Releasing talent – develop a process for continually releasing surplus talent that can’t be redeployed
6. Internal movement – revitalize your existing process for internal movement and continuous talent redeployment
7. External ideas – develop a process for generating ideas from internal and external contests, from customers and as a result of crowd behavior and social learnings (Example: Ideagoras like
Innocentive (Next Slide)
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8 TM processes that require additional agility
8. Targeting agile individuals – develop a recruiting process whose target is to increase the percentage of workers and managers that are agile. Also change the development and the succession planning processes to also target agile individuals.
Did I make you think?
Provide you with some new ideas?
How about some final questions?
www.drjohnsullivan.com
End of the presentation
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Dr. John Sullivan, CEO
Dr. John Sullivan & Associates
Master Burnett, Managing Director
Dr. John Sullivan & Associates
www.drjohnsullivan.com
Need assistance? Call Member Services (866) 538-1909 or email [email protected]
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