Plateau 2014 talent management

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Integrating Talent Management Practices and Measures

David C FormanChief Learning Officer, HCI

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Talent Management Aligned with Strategy

Talent Management Practices

HCS Certification Course, V.2.1, 2009

Workforce & Talent Solutions

© 2008 IBM Corporation

Better Talent Management can have a significant impact on profit per employee

“Most companies still earn profits per employee at close to the same low levels earned in the 20th century because they have not become very adept at mobilizing the mind power of their workforces.

As a comparison, the average top-30 company increased profits per employee 70 percent

The target should be to improve profits per employee by 30 to 60 percent or more. “

“The opportunities to improve the performance of workers just from increased efficiency alone are huge: Surveys show that a majority of workers in thinking-intensive jobs in large companies feel they waste from half a day to two days out of every workweek...

The opportunities to improve the effectiveness of such workers are even larger. The opportunities to mobilize the latent intangible assets (that is, knowledge, skills, relationships and reputations) of a company’s workforce are vast.”

Net Income per Employee

Top 30Companies

Next 30Companies

$83,000

$53,000

Mobilizing Minds Lowell L. L Bryan and Claudia L. I. Joyce

Denis Brousseau

Is it ok to use these quotes from other sources?

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What Others are Saying… From 1998 to 2006, the stock of the companies identified in

Fortune’s “100 Best Places to Work for in America” list outperformed that of the S&Ps 500 by more than 230%.

—Fortune, 2006

Organizations that apply talent management practices demonstrate higher financial performance compared to their industry peers.

—IBM/HCI Research, 2008

Companies with superior human capital practices can create more than double the shareholder value than companies with average human capital practices.

—Watson Wyatt Research, 2008


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Talent Management and the Numbers

Cost of losing a talented employee – $250K-$500K

Number of employees the average manager’s actions

directly affect – 12

Rate of efficiency at which most businesses operate because of poor engagement levels– 30%

Cost of poor hire – $300K - $500K impact

Acquire

Engage

Develop

Deploy

Retain

Plan

Evaluate

Lead

Value of top performers – 2 to 3 times the performance of

average employees

Average time required for a new manager to become productive – 6 months

Percentage of a company’s employees who are well suited for their roles – 20%

70% of organizations have a weak pipeline

Cost per day when operating without a key player - $7,000


6 HCS Certification Course, V.2.1, 2009

Polling Question

What does it cost to lose a valued employee?

A. Half of the employee’s combined salary and benefits

B. Equal to the employees combined salary and benefits

C. 1 ½ times

D. 3 times


Polling Question

What percentage of organizations have an adequate pipeline for leadership and strategic positions?

A. 30%

B. 50%

C. 70%

D. 90%


Polling Questions

According to Gallup, how much does it cost an organization to have an actively disengaged employee?

A. $5000

B. $7500

C. $3400 for every $10,000 in salary

D. A bunch

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Especially Now……. Talent management is even more critical in an uncertain economy—the

luxury of missteps is gone—every talent decision must be correct. The stakes are even higher when talent cannot be “bought” and outside

flexibility is reduced. Must look at the skills and competencies needed to get the work done

More emphasis on increasing productivity through engaging, developing, deploying, recognizing and retaining the employees that we have—greater capacity to execute strategy

Doing “more with less” is the new standard Cross-training and accelerated development become major initiatives There is a big cultural component to these changes


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Jim Collins’ New Book about Organizations in Turbulence (2009) The times from 1952 – 2000 are an aberration, not the norm

• Stability and prosperity co-existed for 50 years• The Egyptian empire was perhaps similar• The new norm is an unsettled world…so get used to it

Three Critical Factors• Have your moorings. Values and purpose are more vital than ever• It is about the talent to get you through. When climbing a mountain, a

plan is nice but its all about the people with you• Zoom out. Attend to micro issues but have a broader lens so that the

future is not compromised


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The Impetus for TM in The Public Sector President’s Management Agenda: Human Capital Initiatives

Hiring 200,000 more people to bring capability inside

Best Places to Work lists in the government

Chief Performance Officer

New administration priorities: transparency and accountability

The big issue is having the skills and competencies to deliver on the mission—it is not just technical but also social, cultural and emotional intelligence competencies

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The Value of Intangibles



Southwest Airlines Success Clear, consistent strategy

Operational factors• No hubs, one airplane, Love field

Good decisions• 70% of fuel is hedged at $51 per barrel

Talent strategy• Modern organizations require leaders at all levels

“You have to treat your employees like customers. When you treat them right, they will treat your outside customer right. This has been a powerful competitive weapon for us.”

—Herb Kelleher


The New Metaphors Jim Collins in “Good to Great”

The old adage “people are your most important assets” turns out to be wrong. People are not your most important asset, the right people are.”

The metaphor of The Bus

PepsiCo 5Rs

Xerox and volunteer organizations

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The Result...Talent Management is Now Strategic

Top-down urgency in both sectors

Confluence of research and best practices to support

Can’t succeed in the marketplace without first succeeding in the workplace

The economy values innovation, agility, collaboration across borders, rapid response to change and differentiated strategy

Greater visibility and accountability than ever before, especially with new stakeholders

Examples of new companies and organizations that are born “human-capital centric” from the very start

The flood of younger employees with different expectations


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Talent Management Adoption Model

Line Managers to Talent Leaders, V.1, 2009

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The Steps in the Model

Traditional organizations go through the steps sequentially over a period of many years. These organizations are known as “Talent Academies” because this represents a significant core competency for them.

Many new organizations are “born” to a talent-centric, high performing culture. They carefully architect this culture from the very beginning

Different paths but the steps are necessary

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Step 1: Enterprise Leader’s Mindset

McKinsey research has established the importance

Numerous “high profile” CEOs have demonstrated this behavior

Rough benchmark is at least 20% of time is spent on talent-related issues

Monthly talent reviews with business units are standard

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Step 2: Division Leader’s Talent Mindset

The next leadership level in the organization, and active champions step forward

Talent laboratories begin to be established

Recognition is provided and success is observed in specific departments or groups

Compelling cases are made to those leaders who can be influenced

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Step 3: Process Building

New infrastructure is needed to drive talent practices

Old processes are used to drive operational consistency rather than talent optimization

Process building is the domain of experts

Examples: workforce planning, competency development, performance management, talent reviews, leadership development, internal mobility, and career development

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Step 4: The Guiding Coalition

Moving from the leadership level to more operational ownership

Not an HR activity, as the responsibility for talent must be owned by the line and leaders at all levels

The members of the coalition must be highly regarded by both leadership and peers

The coalition has real power to shape policies and practices

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Step 5: The Manager as Talent Leader

A huge adjustment and hurdle for traditional organizations. Recognition and incentives are misaligned

The manager’s role is key in engagement, productivity and retention (Gallup, CLC, Towers-Perrin, Hewitt, etc)

Traditional manager role and training is aimed at efficiency and control, not optimizing and leveraging talent

Significant personal transitions must also be overcome for managers to be talent leaders

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Step 6: The Employee as Initiator of Talent and Career Development

Employees start to drive conversations and action within a structure

Democratizing the process and “personal brand building”

Forces greater transparency throughout the organization

Emphasis from new generations

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Polling Question

Is talent viewed primarily as a cost or an asset in your organization?

A. Cost

B. Equally a cost and an asset

C. Asset

D. Don’t know

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Polling Question

What stage in the model is your organization in?

A. Leaders mindsets

B. Process building

C. Guiding coalition

D. Manager as talent leader

E. Employees as initiators

F. Don’t know

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Talent Management Adoption Model

Line Managers to Talent Leaders, V.1, 2009


Metrics Easy and right Critical few and inconsequential many One time and ongoing Summary and segmented Visibility and action

“Just because something can be counted, it doesn’t mean that it counts.”

— Albert Einstein

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Top Five Overall Talent Metrics Segmented turnover data —Talent quotient as defined

by Hewitt, 2005

Readiness levels for key positions

Segmented engagement levels

Number of strategic/critical jobs unfilled

Percentage of inside vs. outside hires for leadership and critical jobs


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More Specific Contributing Measures Quality of incoming candidates

Quality of hire

Segmented turnover within first two years

Time to proficiency in new job

Depth of talent pools for key and feeder positions

Number of people promoted outside of department

Percentage of first choice hires accepting


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More Contributing Metrics Percentage of employees participating in referral programs

Percentage of employees with an ILP

Quality of hiring experience

Number of past employees returning

Number of internal employees applying for open internal jobs

Tangible indicators of knowledge sharing

Internal participation in blogs, forums and wikis


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A Look into the Future All companies registered in Denmark will be required to

include in their annual reports information about customers, processes and human capital. A minimum of five measures for each is required and comparisons with the previous two years must be shown.

Information for investors about intellectual capital both current and future should occupy at least one third of the report.


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Talent Management Aligned with Strategy

Talent Management Practices


Plateau 2014 talent management

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