How ACs Can Help Digital Transformation...Today’s Agenda •The impact of digital transformation...
Transcript of How ACs Can Help Digital Transformation...Today’s Agenda •The impact of digital transformation...
How ACs Can Help Digital Transformation Martin Lanik, CEO of Pinsight
ACSG 2020
20 years later and everything’s changed!
Many companies went bankrupt
Today’s Agenda
• The impact of digital transformation on businesses & workers
• How ACs can help with the people side of digital transformation
• Case study of $4.3 billion-dollar healthcare company
Impact of Digital Transformation
Digital transformation is in full swing!
0% 10% 20% 30% 40% 50% 60% 70% 80%
… for faster time to market
… to meet changing customer expectations
… to improve operational efficiency
Have a digital transformation strategy in place …
PERCENT OF ORGANIZATIONS
Source: Forbes (2019)
Jobs that no longer exist:
• Human alarm clock
• Lamplighter
• Switchboard operator
• Scribes
• Typesetter
• And many, many more
Jobs that didn’t exist 10 years ago:
• Social Media Manager
• SEO Specialist
• App Developer
• Uber Driver
• Podcast Producer
• Telemedicine Physician
• And many more.
Prediction for the next few years
In 2025, more than 50% of labor (by hours) will be done my machines
In three years, more than 54% of all employees will require significant reskilling
Source: World Economic Forum
What does this mean for talent management?
What does this mean for talent management?
• You’re making decisions about people in jobs
that either won’t exist in the next 3-4 years or
don’t exist now.
• SHRM: You need to make decisions about
people based on their future potential
How do you do it?
• Organizations have been doing this for decades
• With the war for talent, they built HR practices to help them identify “high-potentials”
By far, most companies rely on management to identify high-potentials
Source: World Economic Forum
0% 10% 20% 30% 40%
Other
Third party assessment (personality, intelligence, etc.)
Manager nomination
Manager or performance ratings
Talent review or 9-box ratings
How are high-potential employees identified in the company? Data from 129 U.S.
companies
Here’s the problem with managerial ratings:
They’re not accurate!
Question: Will the leader help us retain more staff?
Source: World Economic Forum
Data from Fortune 500 tech company. Their average retention rate today is 86%.
50% chance will
retain
less staff
50% chance will
retain
more staff
9-box ratings of
Potential
r = - .13^
54% chance will
retain
less staff
46% chance will
retain
more staff
51% chance will
retain
more staff
9-box ratings of
Performance
r = .04
49% chance will
retain
less staff
39% chance will
retain
less staff
61% chance will
retain
more staff
Virtual AC
r = .34**
^ marginally significant at p < .10 ** statistically significant at p < .01
Most managers show unconscious bias against women and racial minorities when deciding who has potential
Men are 3x more likely to be
identified as having leadership
potential than women
White men are 2x more likely
to be identifies as having
leadership potential than Black
men
Male managers show stronger unconscious bias than female managers
5x
For every woman organizations actively groom for a leadership position, they groom almost twice as many men.
5x
We see more parity in racial group representation.
When selecting high-potentials, we found unintentional discrimination against women and minorities in almost 1/2 of organizations
5x
Is there a different way?
5x
0,32
0,45
0,54 0,54
0,25
0,3
0,35
0,4
0,45
0,5
0,55
0,6
Cognitive ability Cognitive ability + personality
Cognitive ability + personality + simulation
Smoking & lung cancer
Best predictors of success at work and in life
Source: Meriac et al. 2008
Case Study
Digital Transformation of a Healthcare Company
Industry trends:
• 77% of patients are going online to book doctor appointments
• Telemedicine is projected to grow to $130.5 billion by 2025
Company’s response:
• Board put ambitious operational plans into place
• HR tasked to quickly change the behavior of 700 leaders across the company
$4.3 USD billion revenue | 4,600 employees
Steps in the Process: 1. Future-focused competency model to
identify important leadership skills
2. Build VAC to measure those skills
3. Assess 700 leaders & provide feedback
4. Change their leadership behavior through development support
Leader Competency Model
Adapt to Changing Business
Focus on Customers and Patients
Understand our customers and patients and bring their needs to the forefront of
business decision making
Create Buy-in Influence others to embrace and facilitate
positive change
Execute Strategy
Make Good Decisions
Think critically - gather data and analyze the problem, understand root cause, and
take logical action
Drive for Results Identify priorities and set clear
expectations – who does what by when
Lead Effective Teams
Build Relationships Build trust, show caring, and treat others
with compassion
Communicate Effectively
Create two-way communication channels, ask questions, hear and understand
others
Develop a Strong Team
Actively develop others through coaching, feedback, stretch assignments, reflection,
and suggestions
The Virtual Assessment Center Challenge:
• How do you make it relevant to every level of leadership – CEO to charge nurses? Clinical and administrative roles?
• How do you make it short – 1 hour max?
Simulation Exercises
Formulate and deliver a 100-day plan for the new Digiteam startup Case Study
Review performance appraisal with a direct report and sketch out a development plan Coaching role-play
Respond to an email from a direct report asking for guidance, and an email from the boss concerning delegation of projects/tasks Delegation emails
Angry Customer Act in response to an angry customer’s email concerning a project implementation
What the exercises measure:
Case Study Coaching Role-Play Angry Customer Delegation Emails
Mentor and Coach X X
Show Caring X X
Listen Actively X X
Influence Others X X
Make Good
Decisions X X
Manage Priorities X X
Focus on Customers X X
Live Simulation Timeline
Simulation: Pre-Work
Simulation: Pre-Work
Simulation: Dashboard
Simulation: Example File
Simulation: Example Email
Simulation: Example Email
Simulation: Incoming Role-Play
Simulation: Role-Play Example
Group Analytics for Decision-Making
• How strong are our leaders?
• Who are our top performers?
• Who are our high-potentials?
• Where are our biggest gaps?
EXECUTION
Understand the Competency Ratings
Dive deeper to see how
participants performed in
each simulation exercises,
which micro-behaviors
they showed, and how
consistent their
performance was across
different exercises.
Where Should You Focus Development
Where should you focus
development when putting
together a development
plan? Where can you grow
at the fastest rate? What
skills come to you naturally
and require the least
amount of effort?
Now: Take Action!
After the assessment, the
app generates a
personalized development
plan for every participant
and helps them practice
key leadership behaviors
daily while measuring their
progress.
Development App
Integrated with reporting
and progress tracking –
giving participants a
modern, proven way to
continuously improve, and
administrators to view
progress.
Outcomes • Compared to common
psychometric tests (personality or intelligence tests), 94% of participants viewed the simulation as interesting, rewarding, challenging, and insightful.
• 97% of participants would recommend it to others to improve their performance
• After 12 months of development, 79% participants improved their leadership skills as measured by a post-test.
• Overall, participants’ performance on leadership competencies increased by 11%.
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Concluding Thoughts
• Organizations are undergoing digital transformation
• Most of the important decisions about people are based on biased data
• ACs can help drive the people side of digital transformation
Get the research study at:
RepairTheRung.com