talent management & the new normal
TRANSCRIPT
Talent Management & The New Normal
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Today’s AgendaToday s Agenda
• Introduction - 5 minutes
• Feature Presentation and Q&A - 50 minutes
• Wrap Up and Tour of Track Page - 5 minutes
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T d ’ M d tToday’s Moderator
Bill Craib, Vice PresidentHCI Communities & EducationHuman Capital InstituteHuman Capital Institute www.humancapitalist.org
Today’s Guests
Keith MessickSenior Manager of Customer Results & Global ResearchSuccessFactors, Inc.
Warren LindleyWarren LindleyVice President, Talent Optimization and HR GovernanceKellogg Company
Carolyn CarlsonStrategy & Transformation PartnerInternational Business Machines Corp (IBM)
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International Business Machines Corp. (IBM)
Smarter Talent for a Smarter Planet
Talent Management and the New Normal
Achieving agility and competitive advantage with your talent strategy
© 2009 IBM Corporation
Driving innovation and growth in today’s business environment
Increasing Shareholder Value – Talent is a Competitive AdvantageThe ability to manage costs drive productivity and gain a competitive
g g yrequires focus on the workforce.
– The ability to manage costs, drive productivity and gain a competitive advantage from the workforce is growing in importance and focus, leading to:• Workforce cost optimization• Influence revenue growth
Building the Enterprise of the Future – The Workforce Dimension – Our CEO study offers important insights into the future of organizations and
the workforce imperatives:• Developing an adaptable workforce• Developing an adaptable workforce• Innovation - translating customer needs into employee action• Globally integrating talent• Building a socially responsible organization
The Changing Workforce – Cultural Intelligence & Adaptability– External forces are changing the way that we need to look at the workforce
we have and the workforce that we will need. These forces include:• Changing demographics
© 2009 IBM Corporation7
Changing demographics• Accelerated globalization
A greater focus on Talent Management is correlated with a better financial performance.
From a subset of publicly traded companies, larger companies with a greater focus on talent management have higher financial performance.
About twice as many out-performers strongly
d th t th i
% of financial outperformers within clusters – by profit
60%
70%
agreed that their organizations were focused on two key practices: understanding and addressing workforce
Percentage of financial out-
40%
50%
60%
gattitudes and engagement levels and aligning employee and workgroup incentives with
i t b i
financial outperformers
within cluster*
20%
30%
appropriate business goals.
− IBM-HCI Study0%
10%
Optimizers Talent Managers
Magnets Engineers
© 2009 IBM Corporation8
* Percentage of companies that exceed the sample’s median % Profit increase, by industry, 2003-2006
Better Talent Management can have a significant impact on profit lper employee.
“Most companies still earn profits per employee at close to
Net Income per Employee
$83,000Most companies still earn profits per employee at close to the same low levels earned in the 20th century because they have not become very adept at mobilizing the mind power of their workforces. As a comparison, the average top-30 company increased profits per employee by 70 percent
$53,000
p p p y y pThe target should be to improve profits per employee by 30 to 60 percent or more.”
Top 30Companies
Next 30Companies
“The opportunities to improve the performance of workers just from increased efficiency alone are huge: Surveys show that a majority of workers in thinking-intensive jobs in large companies feel they waste from half a day to two days out of every workweek...
The opportunities to improve the effectiveness of such workers are even larger. The opportunities to mobilize the latent intangible assets (that is, knowledge, skills, relationships and reputations) of a company’s workforce are vast.”
© 2009 IBM Corporation9
Mobilizing Minds Lowell L. L Bryan and Claudia L. I. Joyce
Talent Management can also help improve workforce performance.Good people are great for business
49%
67%
50%60%70%
40%49%
20%30%40%50%
0%10%
Increasedd ti it i
Increased profiti l
Increasedi lproductivity in
operations rolesin general
managementroles
revenue in salesrole
© 2009 IBM Corporation10
“How much more does a high performer generate annually than an average performer?” - McKinsey
Talent Management can help optimize workforce cost.
30Labor Cost / Revenue Percent
272829
252627
242002 2003 2004 2005 2006
“Organizations invest $30 in labor costs for every $100 in revenue generated … Once again, this strongly illustrates the importance of measuring, managing, and maximizing the impact human capital has on the business.”
© 2009 IBM Corporation11
p p- Saratoga
Organizations must balance the demands of two agendas: the efficient management of the HR function and facilitation of workforce and talentmanagement of the HR function, and facilitation of workforce and talent initiatives to improve performance.
Enabling the Globally integrated talent managementWorkforce to drive performanceImprove productivitydevelop and retain “Top Talent”
y g gHR workforce analyticsPerformance managementCollaboration and knowledge Leadership development & optimization
$
develop and retain Top Talent , move out poor performers
(Strategic) HR Value
Driving effectiveness and efficiency of the
(Foundation)HR Value
Systems enabled transformationFlexible, scalable operating models Sh d i / t f tiand efficiency of the
HR FunctionFlexible HR Infrastructure,reduce costs, improve efficiency
$
Shared services / centers of expertiseIntegrated IT infrastructureHR process re-designEmployee self-service/portal
© 2009 IBM Corporation12
improve efficiency Administration of outsourced elements
IBM’s response to the global human resource challenge is our W kf d T l t S l ti (WTS) INTEGRATED hWorkforce and Talent Solution (WTS) - an INTEGRATED approach
Leadership
Enabling and Driving
WorkforceStrategy & Planning
Execute Revenue GrowthCost SavingProductivityEfficiency
Execute
Connect
Develop
SourceAttractRecruit
ManagePerformance
Reward &Retention
QualityCustomer Satisfaction
Innovation
Develop
Deploy
RecruitSelect
On-board
Reward &RecognitionSuccession
WorkforceMeasurement
© 2009 IBM Corporation13
Change & Sustain
28502850 6060 313128502850++Customers
181800
Countries6060++Industries
3131Languages++ 00 ++
Enabling Customer Success gAround the World Since 2001
Million UsersMillion Users4+4+55..© 2009 IBM Corporation14
Million UsersMillion Users4455..
Business Execution Software
© 2009 IBM Corporation15
The E ec tion GapThe Execution Gap
37% value loss due37% value loss due to breakdown in executionexecution
Results
Strategy Execution TraditionalApplications
© 2009 IBM Corporation16Source – Harvard Business Review, Turning Great Strategy into Great Performance, Mankins and Steele
Execution Software Is the Answer53% Directly & 42% Indirectly
Inadequate or unavailable resources 20%
Poorly communicated strategy14%
Actions required to execute not clearly defined ResultsResults
Unclear accountabilities for execution
12%
11%Organizational silos and
culture blocking executionInadequate performance monitoring
10%8%
Inadequate consequences or rewards for failure or success
Poor senior leadership
U d t tUncommitted leadership
8%
5%7%
2%
© 2009 IBM Corporation17
Unapproved strategyOther 2% 2%
Source: Harvard Business Review – Turning Great Strategy into Great Performance, Mankins and Steele, July 2005
Kellogg established “Program Go!” to enable HR Transformation.Kellogg established Program Go! to enable HR Transformation.
Good data. Great people. Best decisions.
To get there, we need to attract, develop, engage, and retain leaders and talent.
• Build a talent powerhouse• Develop a recognized leadership brand• Optimize global human resources network• Strengthen culture
It’s all about the Kellogg People Strategy.
g
© 2009 IBM Corporation18
Kellogg chose IBM and SucessFactors to support HR transformation d i t t ti t h l iand integrate supporting technologies.
HR Transformation ScopeGlobal Design and Americas Implementation
HR Service Delivery Model design and implementation
People Process Redesign and implementation
p
Change management and organization structure design for business partner, COE and shared services organizations
Data Security & Privacy policy and process design
Training strategy & deliveryTraining strategy & delivery
System integration including portal, Knowledge base, ERP, call center technologies and Talent management systems
Vendor Integration - Payroll Benefits and Staffing & RecruitingVendor Integration Payroll, Benefits and Staffing & Recruiting
© 2009 IBM Corporation19
Kellogg chose IBM and SuccessFactors primarily due to their illi t t ith d f th l /willingness to partner with us and focus on the people/
transformation aspects of the endeavor.
Why IBM?Willingness to partner with Kellogg’s (and not “lead” our effort)
Emphasis on talent management (in addition to enabling technologies)
Why IBM?
p g ( g g )
Broad service and asset offering, including strategic alliances
– Services – process, organization, and system integration
– Process Asset - Leading Practices
– Portal Asset - Lotus Workforce Manager
– Talent Alliance - SuccessFactors
Experience leadership resources
Global delivery capabilities
© 2009 IBM Corporation20
Kellogg is beginning to realize the benefits of the partnership.
Financial– Increased efficiency in service delivery – Better management of enabling technology
People StrategyPeople Strategy– Employees – direct access to view and update personal and career information– Managers – better acquire and develop talent using enabling tools; direct control over
and easy access to accurate, reliable information– HR – globally consistent practices high quality information clear picture of the talent inHR globally consistent practices, high quality information, clear picture of the talent in
the organization– Kellogg – consistent and fair practices, decision making based on reliable and timely
information, increased efficiency and effectiveness of managers ability to manage talent now and for the futurenow and for the future
© 2009 IBM Corporation21
It’s your turn! Ask our expert…
Keith MessickSenior Manager of Customer Results & Global ResearchSenior Manager of Customer Results & Global ResearchSuccessFactors, Inc.
W Li dlWarren LindleyVice President, Talent Optimization and HR GovernanceKellogg Company
Carolyn CarlsonStrategy & Transformation Partner
C ( )
Need assistance? Call Member Services (866) 538-1909 or email [email protected]
International Business Machines Corp. (IBM)
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