best practice in talent management

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    Paul Turner

    Professor of Management PracticeAshcroft International Business School

    Best practice in Talent Management andits role in turbulent times

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    Paul Turneris Professor of Management Practice at Ashcroft International Business School,

    Cambridge as well as Non Executive Director of Blessing White Europe and a Non Executive Director

    on the European Advisory Board of OPI. He was formerly President of Europe, Middle East and

    Africa, Employee Care for the Convergys Corporation,responsible for the HRBPO business across theregion. Paul joined Convergys in 2003 as Vice President for both EMEA and ASPAC.

    Paul Turner was previously Group HR Business Director for Lloyds TSB and Vice President of the

    CIPD as well as a Director of BT.

    Paul obtained a first degree from the University of East Anglia, a PhD from the University of

    Sheffield and is a Companion of the CIPD. He has written extensively on management subjects

    and has spoken at conferences throughout the USA,Europe and Asia as well as the CIPD nationalconferences in Harrogate and London.

    Paul Turner is the author ofHR Forecasting and Planning (2002) and Organizational

    Communication (2003), both published by the CIPD and was one of the authors of the 2007 CIPD

    Report Talent. Pauls new book, with Michael Brown,The Admirable Company, will be published in

    2008

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    Be accessible, wily, shrewd and confident; never be arrogant.

    Strike the right balance between dynamism and radicalism- and conservatism

    Have high visibility when its right and low profile when its not

    Be authentic and have the right touch with stakeholders

    Show personal commitment to the company

    Communicate the company vision and strategy clearly and demonstrate that

    performance is being delivered against strategic objectives

    Dont come across as being better than you are.

    Beware of hubris!

    Corporate reputation relies on outstanding

    Quality of Management- key messages

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    Quality ofMarketing

    Quality ofManagement

    Community &environmentalResponsibility

    Quality ofGoods and

    Services

    FinancialSoundness

    Capacity to

    Innovate

    Value as a longterm investment

    Ability to attract,develop and retain

    top talent

    Use of corporateAssets

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    The Effect of Talent

    Improvements in aGlobal Retailer

    2006

    2001

    The Admirable Company

    Michael Brown and Paul Turner, 2008

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    Increasing talent bench

    strength can change to fortunes of anorganisation!

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    And a study by McKinsey in 2008showed talent management also to be

    a key issue for CEOs

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    LOX-ZZV583123-20070112-SM-SM

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    0

    73

    77

    McKinseys Research- 2008-CIPD Conference UK 2008Talent management is the most important strategic challenge for

    today's business leaders

    Constraints on growth*

    Substitutions/innovations

    by competitors

    Cost/availability of talent

    Competitive environment

    Excessive regulations

    Increasingly sophisticated

    consumers

    Biggest managerial

    challenge in next 5 years

    Finding talent

    Greater competitive intensity

    Increasing size of company

    Increasing number ofmarkets served

    Increasing use of technology

    Growing number ofregulations

    Growing complexity ofsupply chain

    Greater geopolitical risk

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    A study by the CIPD in 2007 showed

    the various forces at work whenconsidering talent and talent

    management

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    EXTERNAL CONTEXT

    Globalisation

    Government policiesTechnological development

    Employment levels

    WORKFORCE (supply)

    Demographic trends

    Work force diversitySources of labour

    Perceptions of leadersand managers

    Work-life balance

    EMPLOYERS (demand)

    Global marketsCompetitive advantageWorkforce flexibility/agility

    Competition for labourEmployer of Choice agenda

    ORGANISATIONAL CONTEXT

    Corporate governanceBusiness strategy

    HR strategy, stewardship & policyApproaches to Performance management

    Line management capabilityRole modelling/mentoring

    Successful approaches to talent management

    TALENTMANAGEMENT/

    SUCCESSION

    PLANNING

    Talent - Demand and Supply in a Global Context

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    The talent war goes beyond simple

    economics which makes it much morecomplex. Social and attitudinal factors

    are critical as well.

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    LOX-ZZV583123-20070112-SM-SM

    McKinseys Research- 2008-CIPD Conference UK 2008

    The youngest generation entering the workforce are challenging to attract and retain, but respond well to social

    connection

    War generation Born before 1945

    Shaped by: World

    War II, Great

    Depression

    Baby boomers Born 1945 - 1964

    Shaped by: less trust

    in government

    Generation X Born 1965 - 1980

    Shaped by: Internet,

    diversity,

    unemployment,

    parental divorcerates

    Generation Y

    Born after 1980

    Shaped by: information

    overflow, overzealous

    parents, globalisation

    Sees career in chapters

    of 23 years each

    Expects quick reward

    and individualdevelopment

    Has low barriers to

    separation and high self-

    confidence

    Sees flexibility as a must,

    will make trade-offs for

    better lifestyle

    Demands freedom andcontrol

    Wants meaningful job

    and positive effect on

    society

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    The War for Talent- what can we conclude?

    Changes in the global labour market and demographic trends

    have had a significant effect on talent demand and supply

    It permeates every aspect of the working population and is

    worldwide.

    The ability to attract and retain talent has become a strategic

    priority

    Success in talent management requires excellence in strategy

    and policy as well as flawless execution.

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    What are people saying about talent?

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    Talent. I love that word.

    So different from employees

    So different from personnel

    So different from human resources

    Talent. Just uttering the word per se makes you puff up

    and feel good about yourself.

    Source- Talent, Tom Peters,2005

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    People hold the key to our success- we cherish them Indra Nooyi, Chair, Pepsico,

    2006

    "Can we hire the quality and quantity of people we want to? No. We're under

    investing in our business because of the limitations of hiring." Sergei Brin,

    Google, 2005

    We are driven by a need for innovative, flexible and highly responsive thinking.

    Maurice Levy, CEO of the Publicis Group, after recruiting talented executives from

    a competitor, 2006

    The HR function gives a company the ability to attract and retain the best and the

    brightest from all over the world and the ability to manage that talent within theconfines of the company's values and philosophy. Without that ability, a company

    is nowhere. HR Director- ATT

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    Managing talent is a hard, not a soft issue. Getting it right

    adds value to the bottom line. The ability to attract and

    retain talent has become a board level issue.

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    What do leading organisations do to ensure that they maintain

    an effective supply of talent and then keep their talented

    people?

    In 2007 the CIPD undertook in depth research with a number of

    companies. This followed on from the 2006 survey which found

    that 51% of organisations undertake talent management

    activities; 38% had a formal talent management strategy and

    38% had a formal definition of talent management

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    An important step was to define talentand talent management

    Talent consists of those individuals who can make a difference to organisationalperformance, either through their immediate contribution or in the longer term by

    demonstrating the highest levels of potential

    Talent management is the systematic attraction, identification, development,

    engagement/retention and deployment of those individuals with high potentialwho are of particular value to an organisation. (CIPD Change Agenda, 2006)

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    20Source: "Identifying and managing your assets: talent management" Rhea Duttagupta, PwC; "Reflections on talent management" Rebecca

    Clake, Victoria Winkler, Chartered Institute of Personnel and Development; Next Generation Talent Management Initiative

    2 3 4 5

    "Everybody is a

    talent"

    "Various types of

    talent"

    "Top management,

    high potentials, and

    specialists on all

    levels"

    "Top management

    and high-potential

    senior managers"

    All employees are

    considered talent

    Talent includes

    employees on various

    career tracks and levels

    All high-potentials/high-

    performing employees

    are part of talent pool

    Top management and

    high-potentials/high-

    performing employees onall levels are called talent

    Talent pool limited to top

    management and high-

    potential/high-performingmiddle management

    1

    "High potentials

    independent of

    hierarchy level"

    No discriminationamong workforce

    Differentiated approach

    targeted at specific roles

    Development of

    individual careerpaths possible

    One continuous

    development program

    Early identification of

    talent

    Continuous development

    programs on all levels

    Narrow definition

    reduces complexity

    and allows for

    comparability

    among sample firms

    Neglect of

    potential among lower-

    level employees

    Neglect of talents

    in other areas,

    e.g. specialists

    Focus onmost important

    positions

    Full leverage of

    potential within

    workforce

    Increased complexity

    and workload due to

    Various needs/

    career paths

    Amount of

    employees to tackle

    Increased complexity

    and workload due to

    various needs/career

    paths

    Some complexity due

    to 2 parallel, yet

    distinct talent

    development

    programs

    Early identification of

    talent

    McKinseys Research- 2008-CIPD Conference UK 2008

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    W

    e found that talent management was mosteffective when:

    -It was directly linked to the corporate strategy and related business

    objectives (well-designed talent management activities can have a

    positive impact on an organisations bottom line)

    -And to other HR processes- it wasnt a stand alone activity

    -In particular it was desirable to link talent management into other

    learning and development activities

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    Managing Talent

    Evaluating Talent

    Developing Talent

    Attracting Talent

    Talent management was best viewed as

    an end to end, joined up, holistic activity

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    There were various types of talent interventions

    Rising

    Talent

    Emerging

    Leaders

    Next

    Generation

    Leaders

    Corporate

    Next

    Generation

    Leaders

    Exceptional

    Talent

    Potential and determination to progress

    Training and

    education for

    core technicalor professionalskills

    Training and

    education formanagement

    roles

    Leadership

    Development

    One to one development by

    coaches/mentors briefedon corporate strategy

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    CEO and Senior Management Strategy development

    Communicating the aims of talent management

    Selecting the talent pool

    Executive coaches and mentors

    Human Resources Researching and evaluating alternative approaches

    Advice and support with the design and implementation

    Information flow about TM activities

    Monitoring TM interventions

    Tracking the progress of the TM pool

    Line Managers Identifying talent

    Nurturing talent

    Performance review and individual personal development

    Coaching and mentoringIndividuals Ownership of personal development

    Maximising learning opportunities

    Talent Management Monitoring and evaluating strategic outcomes

    Organisational overview and consistency of approach

    Tracking the progression of the talent pool

    Reviewing and amending initiatives

    Managing talent - who does what?

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    AttractionEmployer brandingCompetitive rewardsCreative recruitment measuresMeasured selection tools

    Strategic Objectives

    RetentionIdentifiable cultureAppropriate benefitsLeadership brandingEmployee engagementExit interview data

    Performance management

    Clear expectationsAppraisalDevelopmentMeasurementRewards

    Development

    Formal and informal interventionsStretching projectsCareer management /deploymentCoaching and mentoring

    The talent management balanced

    scorecard

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    What were the Implications for

    practitioners from the research?

    1. A successful approach is based on an agreed, organization-widedefinition of talent and talent management..

    2. In addition, a language for talent management activities that isunderstood by all the parties

    3. A proactive, strategic approach to talent management offersconsiderable organisational benefits

    4. Support for talent management needs to flow from those at the verytop of an organisation and cascade throughout.

    5. Engaging line managers from an early stage is critical to ensure theyare committed to organisational approaches to talent management.

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    6. Talent management can be used to enhance an organisations image and

    supports employer branding

    7. Talent management activities should be developed with other HR policies

    and practice for a joined up approach

    8. Developing talent may be based on a blend of informal and formal methods.

    9. HR specialists have an important role to play

    10. Processes need to be developed to track the performance and progress of

    those identified as talent

    What were the Implications for

    practitioners from the research?