Strategic Sourcing (Talent Acquisition): Revisited, Re-Defined, & Game-Planned

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Kennedy Sourcing Summit 2008:

Strategic Sourcing: Revisited, Defined, and Game-Planned.

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Joshua LetourneauManaging Director

LG & Assoc Search / Talent Strategy

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Today’s Discussion

If Only We Could Slow Down . . . We Could See The Subtle Shifts In Play Around Us!

Agenda in Brief:

a. Sourcing Vs. Strategic Sourcingb. 6-Step Process to “Change the Game”c. Relevant Examples

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Help Me Answer An Easy Question . . .

So, What is Sourcing?

“Candidate sourcing activity typically ends once the name, job title, job function and contact information for the potential candidate is determined by the candidate sourcer.” (From Wikipedia 11/1/08)

Primary: Phone Secondary: Internet

http://www.youtube.com/watch?v=sW-PHukzdgM

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Ok, So What Is Strategic Sourcing?

???

Define Strategic:

“A strategy is a long term plan of action designed to achieve a particular goal, most often "winning". Strategy is

differentiated from tactics or immediate actions with resources at hand . . .

. . . by its nature of being extensively premeditated, and often practically rehearsed.”

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Recalling SourceCon 2007

“Model Sourcing Organization” is asked by audience member:

Q: “How Do You Decide Where Sourcing Will Make the Most Impact?”

A: “Honestly, We Source Where There Is The Most ‘Heat from Hiring Managers’.

--------------------------------------------------------Q: “What Metrics Do You Use To Define Sourcing Success?”

A: “Growth, or # of New People, Added to the Database.”

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Now, Is That Strategic?

Like Most Americans Who Are Overfed On Carbohydrates and Underfed on Protein . . .

We’re overfed on Tactics and Underfed on Strategy!

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Observation From “The Fringe”

I don’t know about all of you, but from where I’m standing, it sure seems as if demand is being fueled in terms of Sourcing

Efficiency (more names in less time for less cost) . . .

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Let’s Pause For A Moment

Current Recruiting Visualizations Reflect Assembly Lines and Funnel Systems

Insight: People Don’t Like Feeling of Being Treated As Inanimate Objects On An Assembly Line!

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Observation From “The Fringe“ (Cont.)

Focus Seems To Be On Sourcing Efficiency Instead of Talent Acquisition Effectivness.

Hiring More Great People In Less Time For Less Cost* . . . at Higher Day-1 Excitement/Engagement Levels than

the Competition!

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Let’s Keep Our Eyes On The Ball!

Metrics are outstanding Health Indicators . . . And hold value as a result.

However, the mechanistic mindset of process improvement often promotes a focus on the Output instead of the Outcome.

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“The whole visible world is as if it were a machine in which there was nothing at all to consider except the figures and motions of its parts.”

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Visiting the Notion of Process Improvement

Most Companies Focus On What They’re Already Doing Pretty Well!

Incremental Quality ImprovementsModest Production Efficiencies

And lose their ability to think (imagine) outside the box.

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Today: Knowledge Workers / Tacit = Complex Interactions

Fyi:

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In contrast to transformations and transactions, which can be mapped and codified . . .

Tacit interactions depend on complex mixtures of judgment, problem-solving and information exchanges, often involving group behavior that is difficult to replicate.

However, to get the most from workers involved in tacit interactions, managers must abandon much of what they think they know about strategy, organization and information technology.

- James Manyika (May 2006)McKinsey Quarterly Writer (May 2006)

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:

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How Can Your Company Change The Game???

1. Identify What Roles Within Your Organization Are Most Critical to Creating or Preserving Competitive Advantage.

Talent Strategy Begins with Organizational Strategy

- *** Where Does Your Strategy Require Talent That Is Better Than Your Competitors? ***

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Strategy Points To Review: (Including, but not limited to)

Key Differentiators?Value Proposition?Brand Essence?

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Disneyland Vs. Cedar Point Park

Disneyland Cedar Point

Key Differentiator Disney Characters Roller Coasters

Value Proposition “Happiest Place on Earth”

“Roller Coaster Capital of the World”

Brand Essence Fantasy Thrills

Top Website Feature

0% Disney Vacation Financing

Blog/Discussion Page for Roller Coaster Fans

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Identifying Critical Talent Through Your Financials

- What SBUs’ Compromise the Majority of Revenue &/Or Growth?

- What Product Lines Comprise the Majority of Revenue &/Or Growth?

- What Customer Segments Comprise the Majority of Rev &/Or Growth?

- What Is Your Per-Employee EBITDA? (“Operating Cash Flow”)= [Revenue – (Cost of Sales + Operating Expenses)]

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SBU Revenue & Growth TreeMap (Size = Rev / Color = Growth)

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SBU EBITDA Per Employee TreeMap (Size = Rev / Color = Growth)

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2. Identify What Roles Within Your Organization Are Most Pivotal.

- Where are Your Pivot Points, or “Areas with significant deviation between low performers and high performers?

Hint: Start with your critical roles (or most important SBUs’) and work backward.

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Do You Have Access to A Product Portfolio Map?

Example: GE McKinsey MatrixIf you do, it will contain many valuable insights to help you identify ‘Sourcing Targets of Opportunity’ (plus this will impress and gain buy-in of Mktg & Finance Leaders, to say the least.)

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Understanding Pivotal Talent

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Multi-Functional Facilities Manager (Electrical & Equipment Maintenance)

– 2 Engineers• Electrical Engineer & Software Engineer

– 6 Supervisors• High-Voltage: 2• Controls: 18• Outside Buildings: 14• Electrical Maintenance: 15• Construction: 12• Graveyard + Swing-Shift: 5 + 7

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Critical Talent Segment = High-Voltage Supervisor

– “If I lose power to the facility, I have to send 7000 employees home . . . And that would be a real bad day.”

Pivotal Talent Segment = Janitors

– “Because the President of the facility knows that squeaky clean = a higher Wall-Street multiple when the Analysts visit.”

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Key Insight – Decision Theory

Embrace the Notion that There is a Logical and Financial Justification for Increasing Our Investment Geared at Identifying, Attracting, Engaging, and Hiring . . .

“Critical” Talent

AND

“Pivotal” Talent

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3. Dive Into Your Data and Evaluate COH Across All Roles.

- The Marketing Discipline has provided us the tools we need to perform this type of evaluation:

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Where Is The “Bleeding” Occurring? . . .

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Key Insight: How Are We Trending?

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4. Map Your Roles On a Talent Segmentation Matrix.

Hints:

- Graph ‘Importance to Organization’ on the X-Axis (Scale 1-10)

- Graph ‘Difficulty to Identify/Engage/Close on Y-Axis (Scale 1-10)

- Make Size of Bubble = Relative Size of Internal Talent Pool

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Talent Segmentation Matrix Leads Us Key Questions:

Where Are Our Purple Squirrels?

Do We Have Purple Squirrels That Are Non-Critical?

Where Is Our Executive Search Spend Occurring? (Is This Spend Justified?)

* Insight: We Can Make a STRONG Case for Increasing Investments In the Upper Right (and Sometimes Upper Left Quadrant).

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5. Apply Portfolio Theory To Your Talent Acquisition Efforts.

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Portfolio Theory Expands Our Thinking and Moves Toward a Decision Science:

Insight: Portfolio Theory involves viewing each Talent Pool investment in mutually exclusive fashion.

Goals:Reduce COH Where FeasibleReduce TTF Where FeasibleIncrease QOH

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6. Implement Strategic Sourcing Element.

“Special Operations” Mindset

This Element should focus on Plays of significant strategic value:

Proactive Talent PipeliningCompetitive IntelligencePsychographics Research

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Proactive Talent Pipelining Drives Competitive Advantage

- Creating Competitor Lists & Identifying Similar Roles- Identifying HiPo Profiles & “Lateral Fits”- Building Relationships with Competitive Talent- Identifying/Attracting/Engaging Talent Proactively

Increases QOH and Reduces TTF . . . While Increasing Hiring Manager Satisfaction (HM_Sat)

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Proactive Talent Pipelining Visual (By Competitor)

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Proactive Talent Pipelining Visual (By Location)

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Proactive Talent Pipelining Visual (SNA – Recruiter/Sourcer)

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Proactive Talent Pipelining Visual (SNA – Derek)

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Brief Detour - Psychographics (Adjective Cloud)

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TA Innovation’s Ultimate Embodiment

Let’s Play Out a Scenario:

*The process of dividing the total market into smaller sections based on shared characteristics.

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Let’s Play Out a Scenario:

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*

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Red-5 Studios (IPod Strategy)

a. Hand-Picked 100 Dream Candidates (Hiring Target: 5)b. Studied their Backgrounds/Interests through Their Social

Networks and Blogsc. Mailed iPods in Pyschographics-Driven Packagingd. CEO Left a Personalized Message

Result: 90 Replies / 3 Immediate Hires

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Conclusion: Take Your First Step Today!

Big Companies fear that they are too slow and not agile enough to compete with “The Little Guys”.

- “The Wolves Coming Up the Hill Might Be Hungrier, But the Wolf On Top of the Mountain Always Eats.”

Little Companies fear they can’t compete because they don’t have the capital and resources of “The Big Guys.”

- Suggested that with the proper tactics, the smaller/weaker unit could gain strength while weakening the larger/stronger unit.

*** Confucious: “A Journey of a Thousand Miles Begins With a Single Step.” ***

Strategic Sourcing (Talent Acquisition): Revisited, Re-Defined, & Game-Planned

Business

Transcript of Strategic Sourcing (Talent Acquisition): Revisited, Re-Defined, & Game-Planned