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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10
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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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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
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"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
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"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?