a performer gc talent management summit 2012 presentation v1
TRANSCRIPT
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Organisational Readiness
Alignment of Succession Planning & Talent Management -
Making the most of People Intelligence
Stuart Hedley, Managing Director
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Business context is changing
“One in four CEOs said they were unable to pursue a
market opportunity or have had to cancel or delay a
strategic initiative because of talent challenges.
One in three is concerned that skills shortages will
impact their company’s ability to innovate effectively”
Source: PWC, Annual CEO Survey, Feb 2012
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Business Outlook
The focus on talent has never been greater and is magnified by:
• Aging workforce; Baby Boomers retiring in droves (10,000 per day in US alone)
• Critical shortage of 35-50 years old to replace Baby Boomers
• Pace of change in market place (uncertain future)
• Changing business landscape requires new skills
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Minimising RISK
Succession planning as a governance obligation
• Many businesses booming and failing in the same industries
• Shareholders demand transparency!
• “A lack of planning or a badly executed CEO succession can
have an immediate negative impact on company share price, strategic momentum, company reputation, and employee
morale.”Source: Bloomberg Business Week, June 2011
•“Poor succession planning is wiping £2 billion a year from the
stock market value of FTSE 350 companies – equivalent to 0.6 per cent of total UK annual company profits”.Source: Investors in People, 2006
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Major press coverage surrounding Steve Jobs successor
“The shares fell as much as 7% in extended trading in the U.S. yesterday after the announcement”. Source Bloomberg, August 26 2011
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Reported talent shortages around the globe
“As of Jan.1, the oldest of
America’s baby boom generation
started turning 65 at a rate of
10,000 a day — a trend that will
last for the next 19 years”Source: NY Times, 2011
“54% of employers in Australia
are experiencing difficulty filling
critical positions”Source: Manpower’s ‘2011 Global Talent
Shortage Survey
“44% of respondents at
companies based in china say a
lack of managerial talent is a
barrier to conducting activities
outside China.”Source: McKinsey Report, 2008
“Engineers topped the list of job
titles experiencing talent shortage
in the UK in 2011” Source: Manpower’s
‘2011 Global Talent Shortage Survey
Two thirds of CEO’s believe they’re facing a limited supply of skilled candidates Source: PWC Annual CEO report 2011
One in five of all senior executives in the Fortune 500 is eligible for retirement nowSource: Rothwell & Associates
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People are critical to success
• Talented people have never been more difficult to
attract, identify and retain
• High performance = right person + engagement
• But few organisations have clear insight into their
talent’s potential or value
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Succession Planning v Talent Management
The two go hand in hand, though there are key differences:
Talent Management starts with People, and aims to identify
those with high potential, giving them the opportunity to learn
and develop by providing useful experiences to progress their
careers...
...Succession Planning starts with jobs, where critical roles are
identified and the process of succession ensures the
readiness of talent to move into key positions when
necessary. This task is made much easier where talent has
been well managed.
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Why good succession planning matters: The Payoffs:
Best-In-Class companies achieved;
•77% of newly promoted leaders in key positions achieved a rating of “exceeds expectation” in their most recent performance
interview
• 66% of key positions in the organisation
have at least one ready and willing successor
•14% year on year reduction in time to fill key positions
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“Effective Talent Management starts with
People Intelligence...
a deep understanding of the skills, behaviours and
potential within an organisation and how they align
to current & future business objectives
transforming the way you hire and manage talent.”
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“Workforce Planning/Talent Analytics,
specifically, has been cited as a key
growth/trend area by analysts who
demonstrate that companies have these data
on hand, but need a focussed area around
analysis to harness the capability of available
data” (Bersin 2011)
“Indeed, Manpower cited this as
“manufacturing” talent – a strategy to
examine talent within the current workforce
in order to leverage talent in a new way:
anticipating talent needs and having an
accurate perspective of workforce talent
versus reacting to talent shortages with short-
term fixes” (Manpower 2011)
SHL Global Assessment Trends Report (GATR) 2012
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Understand, Align, Optimize
Talent Mobility
Talent Audit Succession
Planning
Shaping
Development
• Identify key roles for succession
(not just leadership, critical roles – managers and highly skilled workers both technical & functional)
• Define behaviours/competencies critical for future roles and motivational, cultural &
values fit
• Identify pools of people that could potentially fit and be high performers
• Assess people against these criteria
• Assess “readiness” of people to move quickly into key positions
• Provide critical learning & development experiences to accelerate growth
• Who in your organisation is responsible for providing coaching/mentoring?
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High performer or high potential?
• Confusing performance and potential can have damaging impact on the company, as well as on the employee;
• High performers in key roles move to
positions for which they are incompetent
• High potentials are overlooked and leave for
opportunities in other companies.
Source: High Potential Versus High Performance: What Is the RealDifference? Bersin 2008
One study found that 71% of high performers were not high potentials… BUT
93% of high potential employees were also high performers.Source: Corporate Leadership Council, 2005
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The challenge of identifying potential
“A hi-potential employee is someone who has the drive, dedication
and the capabilities to excel in positions of greater responsibility.
They are the employees who are most likely to be top performers at
the next level”
(Source: CLC, 2005)
The challenge is how to precisely measure and act upon this
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5. “Soft”, Potential:
a. Motive
b. Personality traits
c. Cognitive
4. “Observable”, Competencies:
a. Behaviour
b. Skills
3. “Hard”, Results:
a. Key Results Areas
b. Core Accountabilities
Potential(Lead)
2. Organisation Context
1. External/Industry Context
Linking the WHAT, HOW and POTENTIAL
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An example: Individual profile
• Results
• Strong SM track record over 3 years; waste and breakages targets exceeded, people indicators all met (absence, turnover, and retention – albeit after an initial high turnover when first took over). Implemented Stock Order 2000 successfully and became a regional Centre of Excellence. Forecasting within store tolerance levels.
• Raised mystery shopper scores by 7pts despite no new in-store investment.
• Seconded to Natural Work Team for cost reduction project in 2003 - not a success, failed to get senior management or other RM / SMbuy-in.
• Skills and Behaviours
• Excel: Drive and resilience – rated highly by all raters; Customer Focus – sets high standards, leads from the front; People Management – rated highly by direct reports (inspires loyalty from those close to, gets results) although low from peers – see items on ‘empowerment’.
• Moderate: Analytical Skills – learnt to use Xxx tool but not naturally analytical.
• Development needs: Business Planning – line manager rated as area for improvement, more instinctively commercial than analytical; Interpersonal Sensitivity (strong evidence that lacks tact, extremely task focussed), could get even more from staff if balanced task and people focus.
• Potential
• Highly ambitious and driven. Wants move to Regional Manager role in 12 months – not very receptive to challenge re realism of this! Works incredible hours even by xxx standards. No location constraints. So willing to relocate in europe
• Despite significant development needs, is receptive to feedback and willing to learn – undertaken CIPD qualification, and would like to undertake broader business planning project / seek experience – recognises failure of NWT experience.
• Values seeing immediate results and is impatient, struggles to ‘let go’ likely to be an issue in more senior roles
• Struggles with complex conceptual thinking – low numerical abilities and short-term outlook style wise. Verbally is above average and can ‘talk a good story’.
• Can be seen as detached or dispassionate about others personal needs.
Overall:
Ready now for <______>Not ready yet
Remain in postManage out
Track record, skills and experience
• 7 years retail experience
• Turned around a failing store
• No corporate/planning roles
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R&D Customer
Management
Sales & Marketing
Organisational
leadership
Senior Manager
Middle Manager
Operational
Management
TP MV
JPSJSK BB
HF MF ML
PB SC NT JN SM
FWFBBM AS
IRKEZP JB SB LC MC
PS
ATVS
An example: Talent Pool review output
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Talent AnalyticsTM
How Talented is your Talent?
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The essence of analytics is to answer a fundamental question ...
... how do we know?
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The essence of talent analytics is to answer the question ...
do we know if our “talent” can achieve what we want to achieve?
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Global telecoms company and “Why are our projects not being delivered to time, cost and quality?”
% Top Talent
SHL Competency Benchmark
Answer given to the CEO “Because we do not have enough project managers and this industry does not attract the best!”
Competencies that
drive performance
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Global telecoms company and “Why are our projects not being delivered to time, cost and quality?”
% Top Talent
SHL Competency Benchmark
Answer given to the CEO “Because we do not have enough project managers and this industry does not attract the best!”
Percentage of top talent in
benchmark & client
population
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Global telecoms company and “Why are our projects not being delivered to time, cost and quality?”
Answer given to the CEO “Because we do not have enough project managers and this industry does not attract the best!”
% Top Talent
SHL Competency Benchmark
Percentage of top talent in
global telecoms industry
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Global telecoms company and “Why are our projects not being delivered to time, cost and quality?”
Answer given to the CEO “Because we do not have enough project managers and this industry does not attract the best!”
% Top Talent
SHL Competency Benchmark
Percentage of top talent client
has attracted and employs
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Global telecoms company and “Why are our projects not being delivered to time, cost and quality?”
Answer given to the CEO “Because we do not have enough project managers and this industry does not attract the best!”
Perhaps the answer is correct – maybe they do not attract the best
% Top Talent
SHL Competency Benchmark
© SHL, 2011
But is that answer correct?
They do attract strong talent
But they also attract weaker talent too
All their people have the qualifications but which ones have the talent to deliver?
Benchmarked using SHL’s competency profilefor effective project managers
% Top Talent
SHL Competency Benchmark
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Workforce optimisation
% Top Talent
SHL Competency Benchmark
Labour costs for project managers US$32 million a year
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Workforce optimisation
% Top Talent
SHL Competency Benchmark
Labour costs for project managers US$32 million a year
Identifying their best talent and aligning them with the most challenging projects
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Workforce optimisation
% Top Talent
SHL Competency Benchmark
Labour costs for project managers US$32 million a year
Identifying their best talent and aligning them with the most challenging projects
Identifying performance and development programmes for each tier of their project manager population
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The question is ...
... how do you know?
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Thank You!