Rock stars, Ninjas, and Gurus—you support your best people, but are your best people supporting...

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Confidential and Proprietary © 2013 Robbins-Gioia, LLC

Rockstars, Ninjas, and Gurus:A different perspective on managing your workforce

Presented by:John Strohecker, Executive DirectorCommercial and Logistics


• Why do we need a different way of managing our talent?

• Strategy Mapping

• Segmenting Your Workforce

• Identifying Your Most Strategic Roles

• Assessing Your HR Processes for Strategic Roles

• Tools for Applying These Ideas in Your Organization

• Additional Reading

Agenda


• McKinsey found that 75% of executives said their firms are chronically short of talent.

• Only 60% of the corporate officers said they were able to pursue most of their growth opportunities. They have good ideas, they have money. They don't have enough talented people to pursue those ideas.

• "Does your company make improving the talent pool one of its top three priorities?" In many companies, only 10% or 20% of corporate officers said yes.

Source: Michaels, Handfield-Jones, Axelrod

In a study of 13,000 executives from over 120 companies…

The War for Talent

http://en.wikipedia.org/wiki/Image:McKinsey&CompanyLogo.gif


Those surveyed said that over the next 20 years the most important corporate resource will not be capital, strategy, ideas or opportunities, but rather talented people who are technologically smart, globally sophisticated and flexible in their response to changing business conditions and customer demands.

Source: Michaels, Handfield-Jones, Axelrod

“Talent Constrained”

http://en.wikipedia.org/wiki/Image:McKinsey&CompanyLogo.gif


• Traditional Performance Reviews rate individual performance against annual goals. Better performance = more money

Does this work? Are you investing in the right people?

• What sets you apart from your competitors? How do your best performers align to these functions?

• What if investing in your best people is the wrong way to do business? What if you should be investing in your most important roles instead? Can you do both at the same time?

Some Important Questions for Human Capital Management


1. Organizations create value for customers through their business model

2. Each role in an organization supports different elements of the business model

3. Some activities create more customer value than others

4. Organizations have a finite amount of money 5. For most organizations employee related costs

are the #1 or #2 cost to the business6. A rational investor allocates funds to the

investment that will yield the greatest return

Basic Premises


STRATEGY MAPPING

“You can get capital and erect buildings, but it takes people to build a business.”

--Thomas J. Watson, founder of IBM

“An organization is nothing more than the collective capacity of its people to create value.”

--Lou Gerstner, IBM


Strategic Theme:Operating Efficiency

Strategic Theme: “e-Business”

Long Term Shareholder ValueFinancial

People

Customer

Internal

Attract & Retain Customers

GrowRevenues

ServiceProduct Leadership

HW SW SCM CRM Serv

Integrated Solutions

• Grow revenues and manage cost structure.

Q: “What is our internal capability focus?”

Q: “How will we create customer value?”

Q: “How will we create shareholder value?”

Q: “How will our people embody that?”• Establish a high performance culture based on core

principles manifested in practice.

• Convergence of hardware, software, and services to provide integrated solutions.

• Focus on core processes that drive value—then execute and improve!

Cost Structure

Human Capital

Culture

Organiz.

• Layoffs• IT Services

• Win, Execute, Team• Collaboration

• Governance (CEC)• IT infrastructure

Strategy Mapping

http://en.wikipedia.org/wiki/File:IBM_logo.svg

Value DriversStrategic Theme:Operating Efficiency

Key InitiativesMetrics Stratgy Mapping

Long Term Shareholder Value

Financial

People

Customer

Internal

GrowRevenues

Strategy Mapping Worksheet

Cost/Productivity

(π = R–E)

• new• “now”

Human Capital

Culture

Organiz.


• Categorize your workforce by Function and RoleOne example: Management Consultant (Junior, Mid, Senior)Technology Consultant (Junior, Mid, Senior)Business DevelopersRecruitersFinancial AnalystsHuman ResourcesMarketingProposalsContractsPractice ManagersInternal ITBusiness Unit LeadershipExecutive ManagementFunctional Department Head

Segmenting Your Workforce


18c

6b

8a

8c6c

6d7d

1a

1.5 2.0 2.5 3 3.5 4 4.5 5

1.5

2

2.5

3

3.5

4

4.51. Geologist2. Geophysicist3. Petrophysicist4. Reservoir Engr5. Wel Engr6. Production Engr7. Process Engr8. Field Engr9. Asset Maint10. Product Research11. Sales & Marketing12. HR13. Trading14. Supply & Distr.15. Business Consult16. Finance17. IT18. Contract & Procur.

2a 3a

5a4a6a

7a

9a10a

1b2b

3b4b

5b

7b8b

9b

10b1c

2c3c 4c

5c7c

9c10c5d

8d

1d2d3d

4d

9d

10d

11a12a

13a14a

15a

16a17a

18a

11b

12b

13b

14b

15b

16b

17b 18b

11c12c

13c

14c

15c

16c17c

11d 12d

13d

14d

15d 16d17d18d

Operational Strategic

Gen

eral

ized

Spe

cific

a. Graduateb. Middle Managerc. Middle/Seniord. Senior Executive

Royal Dutch Shell – Talent Segmentation Map


low

U

niq

ue

h

igh

low Value high

Rel

atio

nal

Tran

sact

iona

l

InternalizationExternalization

Strategic• FOCUS: Commitment - staff based on potential - develop in situ (firm-specific) - equity based pay & benefits - autonomy/self-direction - mistakes drive learning

Complementary

FOCUS: Partnership - select on past experience - develop the relationship - evolving scope - rewards for ideas

Core • FOCUS: Productivity - staff based on current skill - development (job specific) - market-based pay - focus on ST performance - mistakes above the water line

Support • FOCUS: Compliance - standardize/simplify (outsource) - procedural formalization - narrow scope - error avoiding - hourly pay

WARNING: These general trends may not be appropriate for your particular circumstances.

Human Capital Architecture


CD B

AR&D

ManufacturingOperations

Distribution

TMT

HR

R&D

Diagnostics

Fin

Mfg

R&D

R&DPartners

Low VALUE high

Low

U

NIQ

UE

h

igh

HR

LegalMIS

LaboratoryServices

FinQuality

TMT

Strategic

Core

Complementary

Support

Diagnostics

R&DPartnersR&D

PartnersR&DPartnersR&D

Partners

CustomerService

Sales

Sales

CustomerService

PanBio’s Human Capital Map


18c

6b

8a

8c6c

6d7d

1a

1.5 2.0 2.5 3 3.5 4 4.5 5

1.5

2

2.5

3

3.5

4

4.51. Geologist2. Geophysicist3. Petrophysicist4. Reservoir Engr5. Wel Engr6. Production Engr7. Process Engr8. Field Engr9. Asset Maint10. Product Research11. Sales & Marketing12. HR13. Trading14. Supply & Distr.15. Business Consult16. Finance17. IT18. Contract & Procur.

2a 3a

5a4a6a

7a

9a10a

1b2b

3b4b

5b

7b8b

9b

10b1c

2c3c 4c

5c7c

9c10c5d

8d

1d2d3d

4d

9d

10d

11a12a

13a14a

15a

16a17a

18a

11b

12b

13b

14b

15b

16b

17b 18b

11c12c

13c

14c

15c

16c17c

11d 12d

13d

14d

15d 16d17d18d

Operational Strategic

Gen

eral

ized

Spe

cific

a. Graduateb. Middle Managerc. Middle/Seniord. Senior Executive

Royal Dutch Shell – Talent Segmentation Map

HUMAN CAPITAL WORKSHEET

Low VALUE high

Lo

w

UN

IQU

E

hig

h Strategic

CoreSupport

Complementary

Human Capital Investment

Skill Area Action Impact

1.

2.

3.

4.

5.


• Knowing which roles are most valuable is important, but it’s not enough

• Remember premise #6: A rational investor allocates funds to the investment that will yield the greatest return

• So which positions have the greatest opportunity for improvement?

Adding A Dimension


• Knowing which roles are most valuable is important, but it’s not enough

• Remember premise #6: A rational investor allocates funds to the investment that will yield the greatest return

• So which positions have the greatest opportunity for improvement?

Adding A Dimension

Look for Variability in Performance!


• Functionality: Processes & Tools

• Vitality: Mindset & Culture

“Companies that invest in human capital, work to develop and retain valued employees, and measure and hold people accountable for that investment have a powerful competitive advantage.”

--J. Randall McDonald, IBM

Talent Management


Career Management - assignment - path planning

Sourcing - recruitment - selection

Assimilation -on boarding -orientation -culture mentoring

Development - training - coaching

Perf. Mgmt. - appraisal - goal setting - feedback

Rewards - pay - recognition

Engagement - attitudes - behavior

Retention - turnover- value prop

BUILDING FUNCTIONALITY

While the functionality of the talent management system is critically important, success also depends on simultaneously…

VITALITY• Commitment• Engagement• Accountability

TopExecutives

LineManagersHRM

TalentPool

FUNCTIONALITY • Is the system strategically aligned?• Are the practices internally consistent?• Are the processes executed effectively?

Without system vitality, the idea of “best practice” in talent management means little.



Assimilation -on boarding -orientation - culture mentoring


Career Management - assignment - path planning

Perf. Mgmt. - assessment - goal setting - feedback



Retention - turnover- value prop

Source: Ready & Conger (2007)

1 2 3 4 5

Assessing Functionality


1. Select 1-3 strategic jobs: (a) critical to performance of the enterprise, (b) unique skills that are difficult to replace, and (c) variability in performance across individuals.

2. Identify the competencies (knowledge, skills, and personal attributes) needed for success.

3. Make a spider diagram (for each job) that rates the effectiveness of talent management practices (scale 1=poor, to 5=excellent).

4. Make recommendations to enhance:

(a) functionality of the system—use of best practice, effective execution, aligned w/ needs of enterprise, mutually reinforcing,

(b) vitality of the system—commitment, engagement, and accountability of leaders, managers, and employees.


Assimilation -on boarding -orientation




Retention - turnover-total reward

1 2 3 4 5

Deployment - assignment - career mgmt.

Perf. Mgmt. - appraisal - feedback

Assessing YOUR Talent Management System

Deployment - assignment - career mgmt.


Assimilation -on boarding -orientation

Development - training education - coaching



Retention - turnover-total rewards

1 2 3 4 5

Perf. Mgmt. - appraisal - feedback

Job Title: ____________________________________________________________

Competencies:

Talent System Diagram:(Ratings: 1= poor, to 5= excellent)

Knowledge•

• •

Skills•

•

•

Attributes•

•

•


If you work through these steps you’ll have

• Clear of how your organization creates customer value

• Segmentation of your workforce by role• Skills and behaviors, by role, which create

positive results• Human Capital Architecture that maps roles

to value creation and uniqueness/specificity• Identified Strategic roles – critical positions

with high variability • Assessment of HR processes vis-à-vis

strategic roles – what processes should you invest in to support your most strategic roles?

Putting It Together


Additional reading


Additional Reading


Thank You For Your Time

Questions or Comments:[email protected]

mailto:[email protected]

Rock stars, Ninjas, and Gurus—you support your best people, but are your best people supporting...

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