josh bersin

Copyright © 2011 Bersin & Associates. All rights reserved.

Building the Borderless WorkplaceNew Talent Management Imperatives for 2012

Josh Bersin

President and CEO November, 2011


Bersin & Associates Who We Are• Bersin & Associates is the leading global provider of best-practices,

trends, and benchmarking research in talent management, learning, and strategic HR.

• 60% of the Fortune 100 are Bersin & Associates research members, with more than 17.5 million employees managed by HR teams using Bersin Research.

Broad Research Practices- Human Resources- Leadership Development- Learning & Development- Talent Acquisition- Talent Management

Offerings• WhatWorks® Membership: Research, Tools, Education,

Consulting

• IMPACT: The industry’s premiere conference on the Business of Talent

• BersinBasics®: Fundamentals of Talent Management for Business Professionals at All Levels

Human Resources

Leadership Development

Learning & Development

Talent Acquisition

Talent Management


Agenda

Today’s Business Environment Talent Markets: Out of Balance Proven High-Impact Talent Management Strategies

1. New Leadership Models

2. Talent Mobility and Career Management

3. Borderless Talent Acquisition

4. Transformation in L&D

5. Data Science - “The Talent Analyst”

What this means to YOU


Today’s BusinessEnvironment


2012 Business EnvironmentGlobalization, Innovation, Cost Containment

What Are Your Organization’s Top Business Challenges for 2012?

© Bersin & Associates, Corporate TalentWatch® Research, Senior HR and Business Executives, 1/2010

■June 2011 ■ June 2010

Rapid business growth

Acquisition or mergers

Global expansion

Launching new products and services

New top management team

Diminished access to capital

Declining margins

Need to Accelerate Innovation

Competitive threats

Severe business downturn

Financial pressure to cut costs

0% 10% 20% 30% 40% 50% 60% 70%

+90% Increase

+100% Increase

+400% Increase

35% of organizations see the need toaccelerate innovation and globalize – the highest level in four years…. yet…

51% struggle to hire the right talent,despite high unemployment…


The Global Auto MarketplaceAutomobile Sales – U.S. vs. China

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

2

4

6

8

10

12

14

16

18

20

Mil

lio

n V

eh

icle

s S

old

U.S.

China

13.9 million

10.4 million


Ford Figo StoryDesigned in India for the

Indian Market

Manufactured in Chennai by Indian Staff

Size, Shape, and features designed for lifestyle and

roads in India

Colors, face, and styling

designed for Indian tastes

Ford Figo – Fastest Selling Car in India


The Borderless Workplace

Employee

Mentor

Peer

Partner

Candidate

Customer

W O R K P L A C E

Transparent

Dynamic

Performance-driven

Specialized

Interconnected

New Models for HR & L&D

W O R K F O R C E

Connected

Global

Multi-Generational

Mobile

Transient

New Models for Career

Manager

L I F E S T Y L E

750 million people on Facebook

135 million people on LinkedIn

75% of workers are mobile

BigData is Everywhere


What would You Be Willing to Give Up for a Week to Keep your Mobile Phone?

Brushing teeth: 22% Sex: 33% Exercise: 54% Caffeine: 55%

Gaming is now the fastest growing application on mobile devices


Today’s Talent MarketplaceOut of Balance

Skills andExperience Shortage

SpecializationFree AgentEconomy

Too ManyCandidates


Regional Leadership

Country Leadership

Middle Management

Entry Level

Global Talent Deficit India Graduates Millions, but Too Few Are Fit to Hire

75% of technical graduates and 85% of general graduates in India are unemployable by India’s high-growth industries, including IT and call centers.

BofA’s retail wealth management arm, Merrill Lynch, plans to hire 2,400 trainees in 2011, a 50 percent increase over last year.

“We are entering the era of unparalleled talent scarcity, which will put a brake on economic growth around the world, and willfundamentally change the way we approach workforce challenges.”

SURPLUSChina

SURPLUS

DE

FICITD

EFI

CIT

The Cultural Revolution created a “missing

generation” of talent between 40-55, so expatriates fill most

jobs at the top

Young workers flooding the marketplace, yet most have

inferior preparation, language skills, and

technical skills.


The Ill-Prepared US Workforce Only 32% of college graduates

have “excellent” skills to enter the workforce

Only 16% of high school graduates have such skills. Missing are:

• Professionalism/work ethic

• Creativity and Innovation

• Lifelong learning/self-direction

• Critical thinking/problem solving

Only 18% of workforce training programs raise skills from “deficient” to “adequate”


Free Agent Workforce

Job tenure for under-35 year olds is 2.5 years

The average worker today will have 11 jobs by the age of 45

2/3 of all employers are increasing their percentage of contingent workers

We estimate that as much as 40% of the US workforce is currently on a contingent basis


High Performing Organizations Understand This

Increasing Specialization Expertise drives competitive

advantage

Specialization improves quality and reduces cost

Deep skills developed through “deliberate practice” and reinforcement

Deep skills come from a range of developmental experiences

We need career development in all critical job roles

“HIG

H P

OTE

NTIA

LS”

“HIG

H P

ERFO

RM

ERS”

Back Office, Operational, Contingent Employees

Functional Specialists / Front-Line Employees

Top Management

Senior Management

Middle Management

Senior SpecialistsFirst Line

Management

TheExperts


Change in Employment Contract

In 2011 32% of employees are “planning on leaving” their employers, vs. 19% two years ago

59% of employees believe their employer is a sound “long term” place to work vs. 65% over last three years

Only 42% of employees believe that promotions go to the “most qualified” employees

Mercer Whats Working Research, October 2011

Loyalty

Career

Equity


The Workforce is really Younger….

“By 2013, 47% of employees will be those born after 1977. -- US Census Bureau

And…Younger employees are much more likelyto leave their employers.

Under 25 year olds are 10% more likelyto want to leave, and under 35 are 5% more likely.

Mercer October 2011

This generation has a very different view of work and, therefore, of loyalty. They see work as a mutually beneficial exchange with their employer and,

when it’s no longer working for them, they plan to move on.

There is no strong sense of allegiance to the organization or expectation oflong-term employment. Their allegiance is primarily to themselves and their

careers, and that has major implications for how employers manage this youngest segment of their workforce.”

Mercer October 2011


Evolution ofTalent Management

Copyright © 2011 Bersin & Associates. All rights reserved.Page 19

Talent Strategy & Planning

Sourcing& Recruiting

1

2Performancemanagement

Learning &Development

4

Succession planning

5

LeadershipDevelopment

6

Integrated Talent Management

3

HR Systems& Metrics

Compensation

7

CompetencyManagement

RolesJobs

GlobalRecruiting

Efficiency andEffectiveness

Team alignmentPay equityManagerialexpertise

Informaland MobileLearning

Expertise &Career

Development

New leadershipmodels and

needsTotal talent

mobilityTalent pools

and segments

Effective payequity andefficiency

Comparativepay analysis

Pay for performance

Future planningScenarios

Business leveltalent plans

Gap and riskanalysis


1. New Models forLeadership


© Bersin & AssociatesTalentWatch, Fall 2011, n=283

Leadership Remains One of the Toughest Challenges


Major Managerial Skills GapManagerial skills rated lower than skills of entry-level workers

Top Executives

Engineering-Professional

Director-Level

Customer Service

Sales representatives

Entry-Level

Line Managers

24%

26%

38%

38%

42%

50%

59%

2%

5%

2%

5%

10%

7%

6%

% Uneven

% Weak

Current Capabilities by Role, June 2011

Wea

kest

© Bersin & Associates, Corporate TalentWatch® Research, Senior HR and Business Executives, 9/2011

Top MissingSkills in Mid-Level Leaders

1.Coaching2.Performance Appraisal3.Developing Others4.Managing Change5.Communications6.Business Acumen


New Models:

Creativity, not planning

Quick decision-making

Getting closer to customers

Globalization, diversity

Continuous change

Manage unexpectedness

21st Century Leadership Development


Emergence of “Girl Power”

Between1970 and 2009 women went from holding 37% of all jobs to nearly 48%. (McKinsey)

76% of women now work and 58% of all college degrees go to women.

Catalyst found that companies with significant female board representation had a 26% great return on capital invested.

Yet the same research also found that only 14% of top executive positions are held by women.


2. Talent Mobility andCareer Management



TopManagement

Senior Management

First Line Management

Creating Talent MobilityPr

ofes

sion

al C

aree

r Pat

h

Hig

h Pe

rform

ers

Managem

ent Career Path

High Potentials

SMEs(Consultants)

Senior Specialists


Middle Management

EmergingLeaders

EmergingLeaders



TopManagement

Senior Management

First Line Management

Implementing Talent Mobility

SMEs(Consultants)

Senior Specialists


Middle Management

TopManagement

ContractHire

JobIntern

DevelopmentalAssignment

LateralPromotion

StretchAssignment

ExternalAssignmentUpward

PromotionLateral

AssignmentNew

Assignment

Part TimeLoan

New Candidate

New Leader

ExecSuccession


High-Impact Talent MobilityFacilitated Talent Mobility – New Market for Integrated Career Development

Enterprise Workforce Planning

Talent Assessment

Talent Outreach & Exploration

Talent Deployment

Talent Onboarding & Development


Managing Talent Mobility

DESIRED COMPETENCIES (KNOWLEDGE,

BEHAVIOR, SKILLS)

OPEN POSITIONS &

OPPORTUNITIES

INDIVIDUAL NEEDS / DESIRES

INDIVIDUAL DEVELOPMENT

PLAN (IDP)

VISION

STRATEGIC INITIATIVES

DESIRED BUSINESS

OUTCOMES

VALUES

MISSION

ORGANIZATION NEEDS

MOBILITY

STRENGTHS

DEVELOPMENT NEEDS

CAREER ASPIRATIONS

ANNUAL GOALS

SuccessionManagement

CoachingAssessment

Strategic Competencies Organizational

Planning /Restructuring

PerformanceManagement

IndividualDevelopment

Plan (IDP)

Career Management


Need for Development Planning

Organizations with highly effective development planning significantly outperform those without.

With Without

Voluntary Turnover 8% 11%

Turnover among High-Performers 2% 3%

Ability to “develop great leaders” 23% 7%

Ability to “plan for future talent needs”

22% 6%

Median Revenue per Employee $169,000 $82,800


Career Development Models

Individually Manager Level Business Unit Level Enterprise Level

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Business Impact (12 measures)

Engagement and retention

% I

mp

rove

men

tin

bu

sin

ess

imp

act

“Manage yourOwn Career”

Functional CareerDevelopment

Strategy An Open, SocialMarket for

Career

Relative BusinessImpact


Entire Organization Must Contribute to World-Class Career Management

• Identify Career Goals

• Maintain Profiles• Demonstrate

Values• Socialize

Interests• Create Internal

Network• Share Expertise

Employee

• Define Job Profiles

• Provide Coaching• Assess Potential• Identify

Development Opportunities

• Provide Candid Feedback

• Share Talent Openly

Manager

• Provides Tools & Resources

• Develop Career Models

• Facilitate Process

• Offer Career Coaching

• Career Development Training

• Integrate with Talent Mgmt

HR

• Infrastructure – Process, Technology, People

• Create Culture of Mobility

• Communicate Expectations

• Create Transparent Marketplace

Company


Source: Bersin & Associates High ImpactTalent Management and High Impact PerformanceManagement research, 2011 n=290+

Performance Management’s Effectiveness at Key Activities that Drive Business Results

Disappointment with Performance Management


3. BorderlessTalent Acquisition


The War for The Best People


Attracting the right candidate in the right placequickly, efficiently, and consistently


Radical Changes in Talent Acquisition

PC ToolsApplicantTracking

Client/ServerResume ScanResume Parse

Search

SaaS, HostedWorkflow

Career SiteIntegration with TM

CloudOpen SourcingSocial Network

Mobile

Late 1980sForms Automation

Early 1990sRecruiter Productivity

Early 2000sWorkflow and Online

2010+Leveraging the Cloud

ScannersParsers

ElectronicResumes

OnlineJob Boards

OnlineAssessments

OnlineAdvertising

OnlineAdvertisingClassified

Advertising

SEO forTalent

Acquisition

Talent SocialNetworks

ReferralNetworks

OnlineReference

Check

VideoInterviewing& Screening

InternalSourcing

and Farming

Broad Employment

Branding

CandidateRelationship

Mgt

CandidateReferral

Networks

TalentExchanges

JobAggregators

JobSeekerTools

IntegratedOnboarding

IntegratedEmployee

Profile

AdvancedAnalytics

Facebook

LinkedIn


4. Transformation ofLearning & Development


Get MaterialsOnline

Expand, BlendImprove E-Learning

Solve TalentProblems

Informal LearningSkills & Specialization

2001 2004 2010

Evolution of Enterprise LearningChange in Disciplines, Technologies, and Strategies

2007

LMSE-Learning Platform

LMSEnterprise Learning Platform

Learning PortalBlogs, Wikis, Twitter,

Mobile, and Social Networks

Instructional DesignKirkpatrick

Rapid E-LearningInformation vs. Instruction

Search, Collaboration, Community

Information Architecture

E-LearningGet Materials Online

BlendedLearning

Collaborative / SocialLearning, Content Mgt,

Rich Media

InteractivitySimulation

Learning PathsRole-Based

Competency-BasedLearning

Career DevelopmentDeep Specialization

Leadership Development

Rich CatalogUniversity

Selecting andImplementing

E-Learning and the LMS

1

IntegratingAdapting, and

EnrichingBlended Learning

2

Integratingand Aligning

withTalent

Management

3

UnderstandingInformal LearningSocial Networking

Mobileand

Globalization

4

Building Deep and Integrated Alignment with the Business

We are Here


Which learning approaches drive the greatest business value in your organization?

Leaders Know Learning is Informal

Corporate documentation

User generated materials

Formal training - outside provider

Peers, friends, personal networks

Formal training - company provided

Coaching by supervisor

On the job mentoring, projects, rotation

On the job experience

0% 10% 20% 30% 40% 50% 60% 70%

3%

4%

8%

14%

28%

33%

36%

60%

72% of leaders believe their most valuable learning

approaches are informal

© Bersin & Associates, High-Impact Learning Practices® n=1,100, www.bersin.com/hilp


Continuous LearningExpert

Novice

Time

The Continuous Learning Model

Retention is Lost

Traditional Training

TrainingEvent

JobAids

E-learningcourses

CoachingMentoring

SocialNetworking

CareerCurriculum

Communitiesof Practice

MobileLearning


A New Learning FrameworkBersin & Associates Enterprise Learning Framework®

FormallyDesignedTraining

SocialOn-Demand Embedded

Disciplines

Tools and Technology

Learn

ing

Arch

itectu

re

Learning Programs

New Disciplines

New Tools and Technology

Audiences, Problems, and Environment

Learning Culture

Ap

pro

ach

es

20% 80%

Informal

Org

aniz

atio

n,

Go

vern

anc

e, a

nd

Man

agem

ent


Development of a New Formal Learning Architecture


But do We Know what Really Matters?

Great Corporate University

Strong CLO andAlignment

Excellent L&D Skills

Use of rich mediaand social tools

Excellent Training and E-Learning

Innovative program design

Have we created an organization which truly has a culture to learn?

Does leadership reinforce the need

to learn?

Are decision-making processes

clear?

Do people shareinformation

openly?

Do people feelempowered to

point out errors?

Do we listento customers

openly?

Do we takethe time to

reflect?

Do peoplemove around

and take risks?

Is expertiserewarded and

valued?


3%

18%

52%

24%

3%

World ClassValued atall levels

PoorWe do not

value learning

FairA few locationsvalue learning

GoodLearning valued

in some locations

ExcellentLearning is

highly valued

All Organizations

Strength of Learning Culture

We found…success depends on Culture

2%

7%

22%

32%

37%

High Impact Organizations

High Performing Organizations are 3X more likely to have a strong

learning culture


Business Outcomes

Learning Agility

Innovation

Employee Productivity

Customer Satisfaction

Customer Responsiveness

Customer Input

Cost Structure

Time to Market

Market Share

Workforce Expertise

High-Impact Learning Culture® Model

6 Keys to an Enduring Learning Culture

40 Practices of a High-Impact Learning Culture®

Enabling Knowledge

Sharing

Empowering Employees

Building

TrustEncouraging

Reflection

Demonstrate Learning’s

Value

Formalizing Learning

As Process

Leadership

Management

Ability to Learn

Motivation to Learn

Acquisition + Applicationof Knowledge and Skills


Organizations with a Strong Learning Culture Significantly Outperform their peers…

Innovation

46%

more likely to be first to market

Productivity

37%

greater employee

productivity

Time to Market

34%

better response to

customer needs

Quality

26%

greater ability to deliver “quality

products”

Skills for the Future

58%

more prepared to meet future

demand

Profitability

17%

more likely to be market

share leader


5. The Need forData Science in HR


How do Companies Hire People?2/3 of hiring done without any significant assessment

Background checking: 79% Managerial interviews: 64% Interview training: 47% Behavioral assessments: 34% Reference calls: 32% Skills-based assessments: 25%

% of Organizations Which Regularly Use Following Assessment Practices

Bersin & Associates High-Impact Talent AcquisitionStudy, Fall 2010, 158 organizations responded

2/3 use no realassessment process

at all … leavingthe process to

hiring managersor recruiters


The Surprise Effect of Data

What is the most important baseball statistic that drives a winning team?• Team batting average?• Runs batted in (RBI)?• Pitcher’s earn run average (ERA)?

On Base Percentage (OBP) Not a Characteristic of the

Player (candidate)


What Factordrives

sales revenuein these

threeorganizations?

Cognitive AbilityFriendliness

Tenure


Data Analysis Skills Important to HRTop HR Skills | Capabilities Correlation

Business Partner relationship management .52

Managing and leading people .51

Coaching and Mentoring .49

Change management and communications .48

Analyzing and interpreting data .47

Knowledge Sharing and expertise directories .47

Managing your Personal Development .45

Top Organizational | Managerial CapabilitiesDeveloping a high performance culture .77

Developing a strong learning culture .77

Developing strong talent segmentation .74

Developing high levels of career development and mobility .73

Attracting and selecting the right talent .64

Measuring business impact of HR .64

Developing high levels of engagement .54

Giving people honest feedback .49


HR Organizations are Not Ready

What percentage of HR organizations do you believe feel have strong skills in data analysis and interpretation?

6% Rate themselves “High”

56% - “Poor”Bersin & AssociatesHigh-Impact HR Organization® 2011 and 2010, n=741 organizations


The Lowest Rated HR Skill

Attracting and selecting the right talent

Promoting health and wellness

Onboarding new talent

Fairly allocating compensation

Understanding skills needed by role

Encouraging innovation and collaboration

Creating a high-performance culture

Enabling a learning organization

Identifying and developing future leaders

Driving internal mobility

Developing workforce analytics for management

Measuring HR program effectiveness

17%

15%

7%

6%

4%

1%

-4%

-5%

-6%

-11%

-12%

-18%

Relative Strengths of HR Skills and Capabilities

Bersin & AssociatesHigh-Impact HR Organization® 2011 and 2010, n=741 organizations

Measurement, analytics, andsegmentation are the lowest

rated skills in HR teamstoday


Talent Management: What’s Next

Globalization and Talent Imbalances will be with us for the future

Five keys to success• New Models of Leadership• Talent Mobility and Career Development• Borderless Talent Acquisition• Transformed Learning & Development• Bring Data Science to HR


Join Us – April 10-12, 2012

josh bersin

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