linking competency management to talent development.ppt · linking competency management to talent...
TRANSCRIPT
Linking Competency Management to Talent DevelopmentTalent Development
Danny Lee Senior Consultant Hewitt Leadership Consulting
To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
Senior Consultant, Hewitt Leadership Consulting
The Region Is Poised for Explosive Long Term Growth
GDP i US$ T ($ billi ) “Destiny” Period -GDP in US$ Terms ($ billion)
50000
Destiny Period -2035 and beyond
40000China
“Pull Away”
20000
30000
USA India“Emerging” Period - now to
2015
Period -2015 - 2035
10000Japan
2015
02000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Year
GermanyUK
Source: BRIC Report Goldman Sachs 2003
2
Source: BRIC Report, Goldman Sachs, 2003
Asia will lead the world…but who will ‘lead’ Asia Inc.?
20-29 30-39 40-49 50 + yr.
Working Age Population Change in Asia (2000 -2010) Working Age Population Change in Asia (2000 -2010)
Only 25% of companies say they are ff ti t d l i l d
… companies are struggling to excel to manage a scarce pool of talent
38%
yr. olds yr. olds yr. olds olds effective at developing leaders
The percentage of 35 to 44 year olds will decline 15% from 2000 to 2015, while competition for top talent will increase
2%6%
Three-quarters of corporate officers surveyed stated that their companies had “insufficient leadership talent sometimes” or were chronically talent short across the
-23%
yboard”
More than 60% of companies don’t identify high potential leaders
Source: Hewitt Associates, United Nations, Top Companies for Leaders Study
Barely half of those companies identifying high potential leaders provided them with meaningful developmental opportunities
3
An Increasingly ‘Global’ World
The War for Talent is no longer localised…it is becoming globale a o a e t s o o ge oca sed t s beco g g oba
Virtual
Global
ZATI
ON
Multinational
Global
OF
GLO
BALI
Z
International
Multinational
DEG
REE
O
Domestic Export
4TIME
63% of Best Employers and 77% of The Rest confirming that they are experiencing a
Escalating talent shortages
63% o est p oye s a d % o e est co g t at t ey a e e pe e c g ashortage of talent.
Skills shortage across all participants
72%80%
100%
41%27% 22%
40%
60%
22% 17% 17%
0%
20%
Specialist Leadership Project Relationship IT and General
Leadership is one of the most critical capabilities, and it’s in short supply…Leadership is one of the most critical capabilities, and it’s in short supply…
pTechnical Skills
p jManagement
pManagement e’skills Technical
Skills
5
p p , pp yp p , pp y
Best Employers in Asia 2007
‘Best Employers’ have clear talent management strategies that include the following imperatives:
Powerful leadership and talent strategy;
CEO ownership of talent and leadership development;CEO ownership of talent and leadership development;
Robust performance and competency assessment leading to l i dtalent segmentation; and
Compelling development practices and processes
6
Best Employers in Asia 2007
Rank Market Organization Name1 China Spansion (China) Ltd.2 China Three On the Bund3 Hong Kong The Ritz-Carlton, Hong Kongg g , g g4 China Shangri-La’s Kerry Centre Hotel Beijing5 Singapore Four Seasons Hotel Singapore
6 Australia & New Zealand SalesForce 7 India Marriott Hotels India7 India Marriott Hotels India8 Korea SK Telecom Co., Ltd.9 China Four Seasons Hotel Shanghai10 China Nanfang Lee Kum Kee Co., Ltd.11 Singapore The Ritz-Carlton, Millenia Singapore12 India Satyam Computer Services Limited13 Japan UBS Securities Japan Ltd.14 Australia & New Zealand SEEK Limited15 China Renaissance Beijing Hotel16 India Aditya Birla Group 17 Australia & New Zealand Cisco Systems18 Singapore Raffles Hotels & Resorts
7
18 Singapore Raffles Hotels & Resorts19 Australia & New Zealand Novartis Consumer Health Australasia20 India Domino's Pizza India Limited
Top Company For Leaders, 2002-2007
The Three Leadership Truths that hold true in Asia Pacific:
S i t i l t d tSenior team involvement and support
Having a maniacal focus on talentHaving a maniacal focus on talent
Having the right programs in place and executing themHaving the right programs in place and executing them effectively
8
TCFL is conducted in partnership between HEWITT, FORTUNE, RBL
Top Company For Leaders, 2007
9
TCFL is conducted in partnership between HEWITT, FORTUNE, RBL
LINKING COMPETENCY MANAGEMENT TO TALENT DEVELOPMENTTALENT DEVELOPMENT
10
Linking Competency Management to Talent Development
Business Strategy Defines Competencies
Business Strategy
Competency Development
Robust Competency Assessment
Performance Management Segmentation
Data
T l t
Developed Talent Drives Business Strategy Talent
DevelopmentStrategy
11
Source: Hewitt Associates - Best Employers in Asia
Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
COMPETENCY MANAGEMENTCOMPETENCY MANAGEMENT
12
Develop a mental picture of the type of Leader you want for your
Short Mental Activity… Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
Develop a mental picture of the type of Leader you want for your organisation….
What are the leaders’ characteristics or competencies?Why these characteristics?From where did you get ideas of these characteristics?
Leadership Books?Leadership Books? Your own idea of a good leader? From what other organisations tell you how a good leader should be?Do these characteristics really meet the people and business strategy of your y p p gy yorganisation?
How did your organisation come up with its current competency model?
13
The Hewitt Leadership Strategy Matrix
Business Strategy Defines Competencies….
Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
Transformational Change
Business Strategy Defines Competencies….
Leadership behaviours related to:Vision, Speed, Aggressiveness, Risk-taking, Managing Change, Driving Sales
Leadership behaviours related to:Vision, Decision-making, FinancialAcumen, Managing Change, Risk
GrowthReturn
Management, Cost Control
Leadership behaviours related to:Speed, Aggressiveness, ProcessM t Ri k t ki Pl i
Leadership behaviours related to:Risk Management, Process Management,Financial Acumen Cost Control Rule Management, Risk-taking, Planning,
Task FocusFinancial Acumen, Cost Control, RuleOrientation, Task Focus
T i l Ch
14
Transactional Change
Leadership Pipeline
Leadership Passage Further Refine Competencies….
Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
Each numbered turn represents a transition between each of the leadership levelsGROUP / ENTERPRISEn
Leadership Passage Further Refine Competencies….
leadership levels
Each turn is about developing new capability and letting go of previously held
BUSINESS
GROUP / ENTERPRISE
enta
tion
4
5
of previously held responsibilities
Leaders must create mastery at one level before transitioning to
FUNCTION
p S
egm
3
4
gthe next (or they are more likely to de-rail later in their careers)
All individual leaders will be at OTHERS
MANAGERS
ader
ship
2
one of the leadership levels or transitions
SELF
Lea
1
15
Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
ASSESSMENTASSESSMENT
Robust and effective assessment accurately predictsaccurately predicts whoRobust and effective assessment accurately predictsaccurately predicts who will be strong and weak performers…..
16
Why Assess? Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
People vary in their performance and potential considerably and identifying
In the Pan Pacific Region, it’s more important than ever to get selection and assessment right
People vary in their performance and potential considerably, and identifying and acting upon these differences can greatly impact on your business results
Robust and effective assessment accurately predicts who will be strong and weak performers
By acting on assessment results, you can significantly improve individual awareness and capability and consequently business performance
Getting the BEST people for the role results in fiscal savings for your organization
17
What Method? Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
ASSESSMENT METHOD
P f t di ti
r r = Criterion validity correlation with job
fPerfect predictionAssessment/Development Centers
W k Si l ti
1.00
0.65
0 54
performance
Work Simulations
Ability Tests
Assessment Centers (recruitment)
0.54
0.53
0.50
Interviews (structured, e.g. BEI)
Personality Questionnaires
Bio-data
0.43
0.39
0.38 Bio data
References
Interviews (unstructured biographical)
0.23
0.19
18
Source: Robertson 2001, adapted from Schmidt & Hunter
Tools Competency Matrix
Increasing Objectivity of Assessment Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
Exercise/
Tools Direct Report Strategic Behavioral
Tools-Competency Matrix
CompetenciesMeeting Presentation
to BossEvent Interview
Strategic Visioning √ √B i A √ √ √Business Acumen √ √ √People Development √ √Collaboration and Networking √ √ √Collaboration and Networking √ √ √Customer Focused √ √ √Results Oriented √ √Innovative Thinking √ √ √Managing Change √ √
19
Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
SEGMENTATIONSEGMENTATION
People vary in their performance and potential considerably, andPeople vary in their performance and potential considerably, and identifying and acting upon these differences can greatly impact on your business results…..
20
Segmentation: Talent Grid Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
No. Participant Name
egic
Visio
ning
epre
neur
ship
erag
ing T
alent
eamw
ork &
oll
abor
ation
tomer
Cen
tric
ults F
ocus
ed
vativ
e Thin
king
aging
chan
ge
Average
Stra
te
Entre
Leve Te Co
Cust
Res
Inno v
Mana
Outstanding Potentials (Groom for next level)1 Talent # 1 4.00 4.00 4.00 3.50 3.50 3.50 3.50 3.50 3.692 Talent # 2 3.50 3.00 3.00 3.50 3.50 3.00 3.50 3.50 3.313 Talent # 3 3 00 3 00 3 00 3 00 3 50 3 00 3 50 3 00 3 133 Talent # 3 3.00 3.00 3.00 3.00 3.50 3.00 3.50 3.00 3.13
AVERAGE 3.50 3.33 3.33 3.33 3.50 3.17 3.50 3.33High Potentials (Develop identified competencies)
4 Talent # 4 2.50 3.50 3.50 2.00 1.50 3.00 3.00 2.50 2.695 Talent # 5 2.50 3.00 2.00 2.50 2.00 2.50 3.00 3.00 2.566 Talent # 6 2.50 3.00 2.00 2.50 2.00 2.50 2.50 2.50 2.44
T l t # 77 Talent # 7 2.50 2.50 2.00 3.00 2.00 2.00 2.50 2.50 2.388 Talent # 8 3.00 3.00 2.00 2.00 1.50 2.00 2.50 2.50 2.319 Talent # 9 2.00 2.50 2.00 2.50 2.50 2.00 2.50 2.50 2.31
10 Talent # 10 2.00 2.00 2.00 3.00 2.50 1.50 2.50 2.50 2.25AVERAGE 2.43 2.79 2.21 2.50 2.00 2.21 2.64 2.57
Others (Significant development required)11 Talent # 11 2.00 2.50 2.00 2.00 1.50 2.00 2.50 2.00 2.0612 Talent # 12 2.50 2.00 2.00 2.50 1.50 1.50 2.00 2.00 2.0013 Talent # 13 2.00 2.00 2.00 2.00 1.50 2.00 2.00 2.00 1.9414 Talent # 14 2.00 2.00 2.50 1.50 1.50 1.50 2.00 2.00 1.88
AVERAGE 2.13 2.13 2.13 2.00 1.50 1.75 2.13 2.00
Others (Significant development required)
21
Exceeds ExpectationsMeets ExpectationsNeeds DevelopmentConsider alternatives to a leadership path
Segmentation Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
Issue5-10%
CAPABILITY OR POTENTIAL
Well-Placed45-55%
Expandable25-35%
High Potential5-10%
DistinguishedPerformer5-10% Group I
(High Performing ExceptionalPGroup II
(High Performing ModerateExcellentPerformer25-30%
(High Performing Exceptional Leader)
P E RFO
(High Performing Moderate Leader)
SolidPerformer45-55% Group III
(Moderately Performing Exceptional Leader)
RMANC
Group IV(Moderately Performing Moderate
NeedsImprovement10-15%
Exceptional Leader)CE Leader)
22
Different development Program for different segment
Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
TALENT DEVELOPMENTTALENT DEVELOPMENT
23
Developing Leaders is about being purposeful Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
“Leaders aren’t born, they are made. And they are made just like anything
l th h h d k ”else, through hard work.”
Vince LombardiOne of American football’s most successful coaches
24
Top Companies For Leaders Consistently Outperform the S&P 500
The Top Companies for Leaders all have two things in common: The first is outstandingThe Top Companies for Leaders all have two things in common: The first is outstanding year-over-year financial performance; and, the second, is a single-minded focus
and commitment of resources to developing leaders and high potentials at all levels.
Total Shareholder ReturnTotal Shareholder Return
200
2503M CompanyGE
100
150Johnson & JohnsonDellLiz ClaiborneIBM
0
50
IndexValue =
2002 2003 2004 2005 2006
Procter & GambleGeneral MillsMedtronicAmerican Express
“Processes, systems, & technology can all be replicated, but leadership & talent is where true competitive advantage lies” John Rice, Vice Chairman of
Value 100
S&P 500
25
p g ,General Electric Company, 2007
Top Companies Have The “Right” Leadership Development Practices
Performance management, goal setting and reward
Global bench strength with the capability to d li b i
Effective leadership talent development processesstart with a solid foundation. Value added leadership
talent development processes realize business strategy, talent attraction, engagement and retention.
Value
setting, and reward strategies aligned to
strategic plan
deliver on business strategy
Established well- Global geographic
g g
communicated leadership brand,
clear leadership promise
Global, geographic, business unit and cross functional
mobility
Competency framework and future leader
Formal succession planning process
cascaded
Foundation
future leader success profiles throughout org
Leadership development
Clear sourcing
26
development program &
transparent career management process
strategies for leadership and key
talent
Business leaders and managers need to own leadership and key talent development activities. HR should
provide the tools and processes and facilitate.
Top Companies Have a Maniacal Focus on Capability Development
Percentage of Top Companies using the following approaches to development.
27
Source: Hewitt Associates. 2005. Top 20 Companies for Leaders Research Report.
Our Points of View on Leadership Development Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
Self awareness is key - being open and willing to developing oneself is an enabler to the process
Leader behaviours can be shaped, but personality essentially ‘cannot’ be changedLeader behaviours can be shaped, but personality essentially cannot be changed
Emotional intelligence can be developed to improve leader effectiveness.
Leadership behaviours do not change overnight—incremental change is more the reality;
Organizations require supporting systems and processes to reinforce behaviour change that are specific to each organization;
Important to focus on building and developing leader strengths, rather than to focus on developing weaknesses.
Leaders must be held accountable for developing othersLeaders must be held accountable for developing others
Essential to measure and re-measure impact of leadership development interventions to ensure true return on
28
Experiential and action learning are key to development program design and delivery to maximize learning
Leadership Development Program
Developing a High Performing Leadership Team
Business Strategy
Competency Development
Robust Capability
Assessment
Performance Management
Segmentation
Talent Development
Business Strategy Defines Competencies
Talent Drives Business Strategy
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008
PRE Development Performance
POST Development Performance
p g g g p
Leaders
Performance Culture Audit Culture Audit
Orientation to HPW
External Coaching for GM / Internal Coaching for SM
LeadersStrategic Visioning
Leveraging Talent
Managing change
TeamworkCollaboration
Experiential Workshop
HR
HR Scan(practices & processes)
Role of HR(Sustaining Change
On The Job)
HR Monitoring(Implement Learning)
Hewitt
- On The Job)
Workshop Design /
Learning Implementation - Follow Up
29
p gInternal Training
Common Pitfalls in Talent Development
Lack support and ownership from the ‘top’ (CEO and the Board)
Misaligned competencies to drive business strategy
Assessment lack robustness that lead to inaccurate talentAssessment lack robustness that lead to inaccurate talent identification
F t d O hi f T l t M tFragmented Ownership of Talent Management
Poor execution of development program
30
HR Often Has Difficulty Managing Leadership and Key Talent Development Because Ownership is Fragmented
HR Business Partners
Compensation &BenefitsOD/LeadershipLearningRecruitment
Talent Supply
• Workforce planning
• Interviewing
• Market Pay Levels
• Evaluation Tools• Competencies
• Skill Gaps• On-boarding and
Orientation
• Sourcing• Screening• External Vendor
Management
High Performance
• Deployment• Mobility• Leadership
Engagement
• Executive Rewards
• Pay Branding
• Leadership Development
• Succession Planning
• Skill Development
• Sourcing
Leadership & KeyTalent Capabilities
• Team Building
• Goal Setting
• Pay Differentiation
• Incentive Programs
• Gap Assessment• Performance
Coaching
• Skill Development
• Managerial Capability
EmploymentRelationship
• Employee Relations
• HR Policies
• Benefits Design• Base Pay
Positioning
• Employee Surveys
• Employment Brand
• Career Development
• Training
• Brand Communication
31
Brand
It’s all about Execution
“Less than 10% of strategies geffectively formulated are
effectively executed”Fortune
“In the majority of failures - we estimate 70% - the real problem p
isn’t bad strategy. It’s bad execution”
Fortune
32
Fortune
Leadership ConsultingTransforming Leaders and Business
33