empowering the middle and creating workforce readiness

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Empowering the Middle and Creating Workforce Readiness

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Speakers: Stacia GarrSenior Analyst for Talent ManagementBersin & Associates

Stacey HarrisDirector, Strategic HR Research, & Principal Analyst, HR and Talent ManagementBersin & Associates

Moderator: Daniel Margolis, Managing EditorTalent Management Magazine


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Daniel MargolisManaging EditorTalent Management magazine


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Stacia GarrSenior Analyst for Talent ManagementBersin & Associates

Stacey HarrisDirector, Strategic HR Research, & Principal Analyst, HR and Talent ManagementBersin & Associates

Copyright © 2011 Bersin & Associates. All rights reserved.

Empowering the MiddleCreating Workforce Readiness

Stacey Harris, Director Strategic HR & TM Research

Stacia Garr, Senior Analyst Talent Management


About Us

What We Do

We offer an integrated research and advisory services program for human resources, learning and IT professionals. Members gain access to proprietary research, tools, benchmarking, and executive networking.

Areas of Expertise

• HR and Learning platforms and solutions• Corporate learning and development• Talent management strategy and practices• Leadership development• Performance and compensation• Succession and career management• Workforce Planning

Who We Are

Leading research and advisory services company in enterprise HR, learning and talent management strategies for business performance improvement


Agenda

Changing Business & Talent Climate Monkey in the “Middle”

• Defining the “Middle” • Challenges & Risks

Value of Investing in the “Middle” Best Practices in Career and Performance Management for the Middle

• Managing performance • Developing capabilities• Supporting career options

Key Takeaways Q&A


Business Challenges Accelerating innovation, Rapid market changes, New products

Source Bersin & Associates TalentWatch Q4 2010 N=300


Urgent Talent ChallengesRise in key positions and skills for new productsDecline in Retirement, Leadership, and Performance concerns



Who is in Our Workforce?

TraditionalistsBorn: Pre-1945

Hierarchical, loyal to institutions, motivated by financial rewards and security.

Baby BoomersBorn: 1946—1964

Idealistic, competitiveand striving to achieve.Generation X

Born: 1965—1979

Self-reliant, willing to Change rules, tribal

and community-orientedGeneration Y

Born: 1980—2001

Confident, socially-conscious,

family centric and technology savvy


25-34 35-44 45-54 55-64 65+

Workforce Demographics 2018New talent gaps emerge

Gap in EmergingLeadership

Gaps in entry level workers

The Inevitable Exodus

Diverse:+33% Hispanic+27% Asian+7.5% Black

+11% Women

Under-skilled.(US) 22% of college grads need additionalskills to start work

Lack of mobility:Only 7% of new workersable to relocate, vs. 18% in 2008


High-Impact Talent Management Framework ®

New Approach to Talent Management


Talent Management Maturity ModelLevels indicate increasing integration, business ownership & alignment

Level 4Fully integrated processes and systems.

Talent management is business-driven.

Level 3Primary focus is on connecting. Single person or team

responsible for talent goals & outcomes.

Level 2Beginning to identify connection points. Several systems

primarily integrated through manual processes.

Level 1Individual talent processes or silos.

May have systems in place but not connected.

28%

45%

20%

7%

© Bersin & Associates, TM Factbook HR Practitioners, Jun 2010


Level 1: Silos

Level 2: Starting to connect

Level 3: Focused

Level 4: Fully integrated

2009 Total Turnover 15% 13% 11% 7%

2009 Voluntary Turnover 8% 6% 5% 4%

2009 Turnover among

High Performers 2% 2% 2% 1%

Percent of Companies that Promoted 10% or more Employees in 2009

23% 23% 31% 45%

Impact of Mature Talent Management Lower turnover, higher promotion rates


Segmenting Talent is Sound BusinessBut what happens if you aren’t “pivotal” talent?

A “pivotal” role, as described by John Boudreau and Peter Ramstad in their recent book Beyond HR, is a job that:

StrategicValue

AveragePerformance

HighPerformance

LowPerformance

Pivotal JobValue Gap• Has a disproportionate impact

on the ability of the organization to differentiate itself in the marketplace

• Has a wide range of performance variation doing the job


Agenda





Key Takeaways Q&A


Defining the MiddleConsistent Performers make up 74% of most companies

Failing to

Meet E

xpect

ations

Nearly M

eeting E

xpect

ations

Meetin

g Exp

ectatio

ns

Above E

xpect

ations

Far Exc

eeds Exp

ectatio

ns0%

10%

20%

30%

40%

50%

60%

6%12%

51%

23%

8%

Source: Bersin & Associates High Impact PerformanceManagement research, 2011, n=200+


Consistent Performers ChallengesThey get less attention, more work, and fewer options

40%

20%

40%

Manager’s Time Al-location

A PlayersB PlayersC Players

Performance Improvement Plans

Coaching & Mentoring

Employee Relations

Low Performers

Consistent Performers

Fewer Expectations Fewer Opportunities

High-Potential Programs

Talent Programs

Coaching & Mentoring

High Potentials/Talent

High Expectations

Opportunities w/ executives


Defining the MiddleLine Managers are the forgotten front line

Managers who have not moved “up” or “over” for several years, and are content to stay in their current position.

Managers who’s direct reports have “good” but not “exceptional” engagement scores

Managers who have slowed down their career for personal reasons

CEO/BoD

Exec. Team/Senior Leaders

Business Leaders

Team Managers

Team Leaders

Employees


Squeezed Line ManagersLess preparation and more pressure

Demographic Ages

25-34 35-44 45-54 55-64 65+

Next Generation Workers• Recruiting Challenges• Expect more feedback• More coaching & training• New ways of working• More Diverse

Today’s Line Managers • Less Education• Succession Planning concerns• Assessments and reviews•Stop gap leadership development

Close to Retirement• Critical Talent Pools• Flexible work arrangements• Knowledge Sharing • Creating Mentoring & Coaching

Nu

mb

er o

f em

plo

yees

in

co

mp

any

Greater Spans of Control More work with less resources

Global ComplexitiesFaster Market Shifts & Greater Risks


Lack of “Quality” Line ManagersNumber one anticipated hiring gap



Concerns over Line Manager Capabilities

Entry Level Employees

Line Managers

Sales Representatives

Customer Services Professionals

Director Level roles

Engineering Technical Professionals

Top Executives

1.29

1.36

1.45

1.54

1.66

1.74

1.92

Level of Talent ReadinessOn a scale of 1-3


Large Pharmaceutical Client Commented:“We must re-establish the nobility of management in our company. Managers hold a sacred role, and we must prepare, coach and train them to succeed.”

Over 31% of Companies felt their Top Executives were highly capable

Compared to 6% who felt their mid-level and entry level managers were highly capable


Agenda





Key Takeaways Q&A


Value of Investing in the MiddleExpected Increase in the Bottom Line


Engaging Consistent PerformersBenefits of focusing on both numbers and culture

These employee’s play an integral role in supporting a companies culture and employment brand

They enable “A” Players to execute and perform They become the “go-to” people within the organization When supported and developed, they are less likely to leave an organization They may be the most likely group of employees to speak up when politics or

“egos” may be getting in the way Are more likely to focus on what is best for an organization or their team


HR, only as Effective as Line Managers1 to 1 relationship between increased Line Manager capabilities and HR effectiveness measures

HR Effectiveness

Line Manager Capabilities

Improving HR solutions delivery to all employee’s reduces HR

efficiencies by 5%


Enable Line Managers for PerformanceHR has a critical role

Workforce ReadinessEngagement, Retention, Talent Mobility, Job Readiness, Goal Alignment

Performance and Learning Culture

Business PerformanceBusiness Performance, Agility, Productivity, Innovation, Quality, Customer Service

Management and Leadership EffectivenessLeadership Effectiveness, Leadership Pipeline, Management Capabilities

Business-Aligned Leadership Competencies

HRBusiness Alignment

HRServices Effectiveness

HRServices Efficiency

Employment Fundamentals (Essentials)Hiring Legal Compliance, Payroll, Safety, Benefits


Agenda





Key Takeaways Q&A


Single meeting on goals

Emailing goals to next level

Presentation to next level down

One-on-one conversations

Series of meetings on goals

0% 10% 20% 30% 40% 50% 60%

28%

25%

36%

48%

6%

15%

20%

27%

39%

51%

From Senior Leader to Business LeadersFrom Business Leaders to Their Teams

How Goals are Shared


How Does Your Organization Cascade Goals?

Board of Directors/CEO

Exec. Team/Senior Leaders

Business Leaders

Team Managers

Team Leaders

Employees


Case Example: Company ACompany

APrevious State

• Employee goal setting siloed – manager only avenue for help

• No method to create collective focus around business unit/functions goals

Action

• Organization introduced a goal setting workshop• Different functions, teams, or other cross-sections come

together to set goals

Result

• Improved goal clarity • Heightened sense of camaraderie• Greater collaboration amongst employees on goals• Goal achievement improved


Mid-Level Managers Fail to Keep Pace

Employees

Mid-level Managers

VPs/Directors

Business unit / functional leaders

Senior executives

0% 10% 20% 30% 40% 50% 60%

18%

36%

44%

48%

56%


Who Revises Their Goals?


Continuous Goal ManagementOn-Going Tracking of Progress


Case Example: Travel ExPrevious State

• Automated performance management• Still not getting the return expected from performance

management

Action

• Managers and employees discuss employees’ goals• Goals entered into online goal system• Goals tracked on quarterly and monthly basis• HR prompts conversations

Result

• Performance conversations more frequent and helpful• Greater collaboration between employees and managers


Managing PerformanceMoving to an Ongoing Model of Performance

From This… To This…

Goal Setting

Managing

Assessing

Rewarding


Developing CapabilitiesWhat to Develop?

Business Acumen

Communications

Managing Change

Developing Others

Performance Appraisal

Coaching

0% 10% 20% 30% 40% 50% 60%

37%

39%

40%

47%

47%

50%

Most Frequently Delivered Topics for Mid-Level Managers

Source: Bersin & Associates High Impact Leadership Development research, 2010, n=300+


Case Example: Turner Broadcasting

Management Essentials

Length: 7 MonthsDelivery Method: BlendedPilot: 105 employeesTarget Audience: New Middle Managers

Topics Covered:• Lifecycle of an employee• Hiring• Performance Management• Company policies and procedures• Soft Skills

“Middle managers play a critical role in our organization, so it is important that we position them for success. People leave managers, not companies. And if they’re not leaving, then they’re not as engaged or productive.”

~Michele Golden VP of Talent Management

Turner Broadcasting


Some Activities Have More Impact

Performance Appraisal

Business Acumen

Developing Others

Coaching

Managing Change

Communications

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

28%

27%

25%

25%

22%

25%

34%

37%

39%

44%

44%

46%

High Effectiveness Low Effectiveness

Impact of Most Frequent Topics for Mid-Level Managers on Their Engagement, Retention and Teamwork

Source: Bersin & Associates High Impact Leadership Development research, 2010, n=300+


Supporting Career OptionsThe Career Ladder…

Prof

essi

onal

Car

eer P

ath

“Tra

ditio

nal H

igh

Perfo

rmer

s”M

anagement C

areer Path

“Traditional High Potentials”

Back Office, Operational, Contingent Employees

TopManagement

First Line Management

Experts(Consultants)

Senior Specialists

Functional Specialists / Front-Line Employees

Senior Management

Middle Management

© Bersin & Associates


…Has Changed


TopManagement



Senior Specialists


Senior Management

Middle Management


TopManagement



Senior Specialists


Senior Management

Middle Management


TopManagement



Senior Specialists


Senior Management

Middle Management

Division B

Division A

Division C

Modern Career Management


Example: Deloitte’s Corporate Lattice

• Traditional hierarchy• Single path upward• Moving up or not at

all• Work versus life • Assumes workers’

needs remain constant

• More conducive to evolving matrix structure

• Multiple paths upward• Flexible

speed/direction• Career/life fit• Adjusts to workers’

needs over time

• Retaining critical talent

• Upward momentum

Career Ladder Career Lattice


Sample People Profile

Visible to Leadership

Manager Supplemented

Employee Driven

Enables Two-Way Communication

Reduces Career Management Burden


Career Stakeholder Roles

• Identify Career Goals

• Maintain Profiles

• Demonstrate Values

• Socialize• Create

Networks

EMPLOYEE

• Define Job Profiles

• Provide Coaching

• Assess Potential

• Identify Development Opportunities

• Provide Candid Feedback

MANAGER

• Provides Tools and Resources

• Facilitate Process

• Offer Career Coaching

• Career Development Training

• Integrate with Talent Mgmt

HR

• Develop Infrastructure – Process, Technology, People

• Create Culture• Communicate

Expectations• Be Transparent

COMPANY


Agenda





Key Takeaways Q&A


Key Takeaways

Changing business challenges requires changing approaches to talent management

Changing expectations of employees requires a different approach to managing the middle

The middle is not “average” performers – instead they are the untapped potential of your organization.

Line Managers are the “forgotten” heroes on the front lines Improving line manager capabilities improves employee engagement and HR

effectiveness Create a more effective goal alignment process that supports line managers

and middle performers Development programs increase capabilities and open more options Career management focuses on options more than specific paths


Agenda





Key Takeaways Q&A


Questions & Comments

Feel free to contact Stacey Harris or Stacia Garr with Questions or Comments at:

[email protected]@bersin.com

mailto:[email protected]

mailto:[email protected]

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