talent management – what if your people with get up and go

Talent Management – What if your people with

get up and go, get up and go?

CIPFA Scotland 2008

Owen Rees

13th March 2008

2

About Zurich Municipal Risk Management

manageme

nt of risk

and

opportunity

change

managemen

t

business

continuity

project and

partnership

managemen

t

talent

managem

ent

• Part of Zurich Financial Services Group - a global 100 company

• Manage the full range of public sector risk management issues through working tools and transfer of skills

• Leading the way on understanding public sector risks

• Innovative solutions to your key business risks

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What are we talking about today?

Not having the right people in the right place at the right time to do the right job

………………. is one of the most significant business risks to appear on most organisation’s business risk registers.

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An issue for you?

• Does your organisation have an aging workforce?

• Do you find it difficult to recruit?

• And if you can do you get the right skills and experience?

• Is it increasingly difficult to hold onto your best staff?

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One of the top risks facing the public sector

Source: Perception and reality - The real risks for public service and charitable organisations - Zurich

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So why is it a risk?

Demographic change:

• McKinsey & Co. used the term ‘War for Talent’ to describe the fact that the supply of 35-44 year olds in the U.K will drop by 21% in the next 15 years, whilst the economic growth forecasts will cause a demand for an extra 25% of talented executives

• Aging workforce - At present there are some 17m people in the UK aged 20-40 and 14m aged 45-65. By 2020 the projections are that the younger group will decrease to 16m while the older group will increase to 17m.

• The populations in England, Wales and Northern Ireland is predicted to continue rising for the time being. Scotland's population is expected to Scotland's population is expected to continue to decline. continue to decline.

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Particular issues in the public sector:

• The UK workforce is aging. The local government workforce that currently accounts for 9% of the whole UK workforce has 34% of its staff over 50.

• We are about to experience a major ‘retirement hump’ and with it comes the loss of skills, knowledge and experience. And all of the complications of recruitment in a diminishing pool of good talent.

• Over 50% of the public sector has reported difficulties attracting talent at both director and management levels.

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“Skills shortage crisis looms” – LGC, 20th September 2007

• Fewer training places for professional disciplines such as town planning, building control, environmental health, public finance – the backbone of many local government professions.

Increased competition for staff

A tighter ‘talent pool’ of well-qualified and available professional officers within these “hard to fill” professions, with the local authority offering the highest pay and benefits package winning the ‘war for such talent’.

• A workforce that is more mobile (20 years ago most people would experience two different jobs by the age of 25; in 2005 the figure is now four jobs)

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Why is this important

Financial assets

People

Physical assets

•Without people – the

other two assets are

vulnerable!

How we do it at Zurich

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Talent in Zurich

Zurich is led by a CEO who not only talks about the fact that people make the company, and that we must develop talent across the Group, but he takes an active interest in this, and demands to know what actions and strategies we have in place to do this.

Talent management runs right across our organisation and includes EVERYONE. When senior executives visit different businesses and countries, they expect to meet a cross section of highly talented people and to know what the talent picture looks like locally and what is being done to strengthen it.

This is an open approach to managing people, and it takes a bit of getting used to!

Talent Strategy

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A Talent Strategy - example

A Talent Strategy should address key leverage points in order to increase the quality and consistency of the talent base, for example:

Make the highest quality appointments (recruitment)

Improve the calibre & performance of existing talent (Personal Development Plans,learning and development, performance management and appraisals)

Prepare high potential for the next level (talent book and succession planning)

Retain the best people, skills and knowledge (talent book)

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How might we deliver the Strategy?

Make the highestqualityappointments

Improve the calibre& breadth ofexisting talent

Prepare highpotentials for thenext level

Retain the bestpeople, skills andknowledge

Selectively usestrategic hires

Internal search &selection support

Hire against HighCalibre standards

On-boarding support Find sources of new

talent

Maintain talent bookgrid for all managers

Assess managers Approve assessment

activity Support Core

Management Training Support Leadership

Development

Manage coachingpool

Robust successionplans

Formal talent pools Career placing for top

boxers Facilitate movement Agree development

programmenominations

Identify group levelNext GenerationLeaders

Manage graduates

Retention strategy forkey talent

Retention plans fortop boxer / talent poolmembers

Robust & consistentredeployment

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You already do this?

• I’m sure you already do a lot of these things?

• But its getting harder and resources are getting tighter

• How can we focus this activity and make it more effective?

Talent Management

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What is Talent Management?

Scene 1 – the monthly 121 – two sides of the same coinScene 1 – the monthly 121 – two sides of the same coin

“How can I make the

most of my talent and realise my

full potential?”

“How can I make the

most of his talent and realise our potential?”

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What is the aim of Talent Management?

• Identify, understand and share current levels of performance and potentialpotential

• Help toward achievement of full potential by agreeing appropriate actions for development

• Help with career management

• Offer a more objective assessment of performance by using Talent Book

Talent Book

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What is Talent Book?

Talent Book is a tool to be used as part of performance and talent management which:

• gives managers an understanding of talent and future potential

• helps managers identify action plans

• allows the business to establish (and share) the depth of talent and potential

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How does Talent Book work?

Talent Book is based around a 9-box talent grid with two axes:

Performance (x axis)

• Does not / partially meets expectations

• Meets expectations

• Exceeds expectations

Potential (y axis)

• No / limited growth

• Potential growth / role expansion

• Seeks new challenges

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Talent grid-risk based approach

Seeks

new

challenges

Pote

nti

al

gro

wth

/ r

ole

exp

ansi

on

No / L

imit

ed

gro

wth

Does not / partiallymeets expectations

Meets expectations Exceeds expectations

PO

TEN

TIA

L

PERFORMANCE

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Talent grid

Seek

s new

chal

lenges

Enigma GrowthEmployee

Next GenerationLeader

Pote

nti

algro

wth

/ ro

leex

pan

sion

Dilemma Core Employee High ImpactPerformer

No /

Lim

ited

gro

wth Under Performer Effective Trusted

Professional

Does not / partiallymeets expectations

Meets expectations Exceeds expectations

POTE

NTI

AL

PERFORMANCE

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How do we rate these well known people?

• Get into groups

• Look at your handouts

• Rate these well known people on the Talent Grid

• Any ideas on how we should deal with them!

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How it works in practise

• Two-way discussion with each member of your team to explain Talent Book- Ask your team member to review their position and explain why they have

positioned themselves where they have

- Explain where you have positioned them and discuss reasons for this

- Discuss the differences and agree a final position

- Review where the individual would like to be on Talent Book and agree a development plan to achieve this. Career discussion

• Moderation – people panel

• Open and honest, transparent, consistency, develops management skills

• Forces people to manage!

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Benefits of Talent Book for the business

• Helps to identify appropriate actions for individual development and performance improvements

• Supports more dynamic and broader succession planning in the business

• Supports development activity in the business and avoids a ‘one size fits all’ approach

• A more consistent approach to your understanding of talent and how to reward and develop it.

• Creates a pipeline of talent that has as strong element of ‘home grown’ ,as well as externally recruited people.

• Helps to identify gaps and blockages in your talent pipeline and drives action accordingly.

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How does this differ from appraisals and personal development plans?

• Based on an assessment of potential

• Forward looking and tailored to the individual

• The talent management plan differs from a Personal Development Plan because it captures more than an individual’s development needs

• It summarises the overall talent discussion e.g.- career aspirations- roles they may be successors for- when they may be ready for these roles- support and development needed and planned

How does this information help us?

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What do we do with the information?

• People Panel / Forum

• Succession plans

• Executive Talent review

• Talent management plan

• Career discussions

• Career track

• Talent pools

• Identify candidates for development opportunities, projects etc

Succession planning

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Succession Planning

It is vital that every organisation plans for the future to ensure that its needs are continuously met. Filling key roles is one of the most difficult management functions and potentially the most critical.

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What are the advantages of succession planning

• Strong pipeline of leaders / functional experts

• No sudden surprises - manages& reduces risk

• Encourages thinking beyond immediate line or function

• Encourages development of successors in advance of them taking on that role / level

• Encourages thinking around future needs and skill set requirements

• Provides a career structure

• Can motivate employees

• NOT predetermining who is getting a job. It is developing a team of people, with the right potential, who will be able to compete for the opportunity.

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Developing a Succession Plan

Identify:

The key roles

• An immediate successor

• A successor in 1-2 years

• A successor in 3-5 years

• An emergency replacement

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In summary

Talent management is a risk based approach that helps us ensure that we have the right people in the right place at the right time to do the right job

So is part of the solution to managing one of our biggest business risks

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Any Questions?

Any further questions?

If not - thank you very much!

Owen Rees, Principal Risk Management Consultant

Mobile: 07730 735 407

Office: 01252 387 722

E-mail: [email protected]

talent management – what if your people with get up and go

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