the executive guide to integrated talent...
TRANSCRIPT
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The Executive Guide to
Integrated Talent
Management
Kevin Oakes, CEO
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Kevin Oakes CEO, i4cp
About Kevin Oakes
Background
Founder, CEO of i4cp
Former Chairman, Jambok
Former Chairman, ASTD Board
Founder, President, SumTotal
Systems
Former CEO, Chair of Click2learn
Founder, CEO Oakes Interactive
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Who we are:
i4cp focuses on the people
practices that make
high-performance
organizations unique.
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High-performance organizations consistently outperform most of their competitors for extended periods of time.
These companies performed better over the past five years, based on these four indicators:
1. Revenue growth
2. Market share
3. Profitability
4. Customer satisfaction
Defining high-performance
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i4cp research has shown that high-performance companies excel in five core areas:
1. Strategy
2. Leadership
3. Talent
4. Culture
5. Market (customer focus)
The 5 Domains of High Performance
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i4cp helps organizations leverage the core domains of high performance through 4 delivery vehicles:
1. Research
2. Peers
3. Tools
4. Data
What We Do
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i4cp Network
2007 2008 2009 2010 2011
-2011
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Uniting the silos
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Talent Management New concept or an old idea
whose time has arrived?
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“There is no bigger problem in the global marketplace today than how to obtain, train and retain knowledge workers.”
- Michael Moe, Chairman & CEO
ThinkEquity Partners LLC
“The killer app for the next decade is talent acquisition and retention.”
- John Doerr, Partner
Kleiner, Perkins, Caufield & Byers
Predictions
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An investment banker’s graph
Source: CIBC, February, 2001
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see attached the draft presentation and proposed CAP chart regarding our joint opportunity…
A story…
…(Together, we) will realize the
market leading vision we have
articulated, and hope we can work
together with you to seize this
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If you have additional questions
please don't hesitate to contact me
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LET'S SEIZE THIS OPPORTUNITY
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Foreword: Tom Rath
Gurus: Peter Cappelli, John Sullivan, Jon Ingham, Ed Lawler, Marshall Goldsmith, Bev Kaye, Noel Tichy, Dave Ulrich
Practitioners: Agilent, Novelis, Hertz, Cisco, Edwards Lifesciences, 3M, Deloitte, General Mills
The Executive Guide to ITM
Chapters
1. Overview 2. Recruiting 3. Benefits 4. Performance Mgt. 5. Succession 6. Engagement 7. Leadership
Development 8. Conclusion
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Nuggets from the book…
“Failures in talent management may be
more recognizable than the concept itself.”
Peter Cappelli
Director of the
Center for Human
Resources
Wharton
“The goal of talent management is the more
general task of helping the organization achieve its
overall objectives. In the business world, that
objective is to make money.”
“Helping the organization achieve its goals begins
with recognizing that the most important problem
facing virtually all employers is the need to
respond quickly to changes in competitive
environments.”
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Higher-performing organizations (HPO) are
more effective at managing talent
Overall, to what extent is your organization
managing talent effectively?
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What do HPOs include in talent management?
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Nuggets from the book…
“…we do not say ‘integrated talent management’ at
Agilent. At least the words are not spoken aloud.
And yet I absolutely know it is happening at Agilent.”
Teresa Roche
VP & CLO
Agilent Technologies
“The three dimensions are set and align strategy,
build organizational capability, and deliver results;
and underneath are specific behaviors.”
“…our CEO, Bill Sullivan…cares deeply about having
the best talent at Agilent. There is not a business
strategy where talent is not considered.”
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What do you look for in new recruits?
Engagement starts with recruitment
Organizations with
Highly Engaged
Employees
Organizations with
Disengaged
Employees
1. Has passion for work 1. Intelligent
2. Has positive attitudes
toward peers and
customers
2. Confident in work abilities
3. Has desire to set and
achieve goals 3. Has excellent job skills
4. Adaptable
4. Has positive attitudes
toward peers and
customers
5. Intelligent 5. Emotionally mature
6. Confident in work abilities 6. Has passion for work
7. Has excellent job skills 7. Has desire to set and
achieve goals
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Nuggets from the book…
“Hiring the right people makes developing the right
skill sets so much easier. Hiring the right person sets
the foundation for every talent activity that follows.”
Leslie Joyce
Chief Talent Officer
Novelis
“Individual opinion is terribly unpredictable, and
worse, it’s often wrong.”
“Despite a great education in the science and practice
of employee selection ― managers consistently
ruined my handiwork by choosing the person they
“liked best” ― sometimes despite the clear evidence
that there were other equally qualified candidates with
a far higher likelihood of being successful.”
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Lower-performers are often more likely to measure
tactical recruiting metrics than higher-performers
56%
50%
56%
82%
68%
45%
46%
57%
66%
59%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Percent of offers accepted
Acceptance rate of first offers
Cost to fill
Hiring cycle time
Number of recruiter requests
High Market Performers
Low Market Performers
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Higher-performers are more likely to measure quality
of recruiting efforts than lower-performers
15%
19%
39%
43%
26%
61%
0% 10% 20% 30% 40% 50% 60% 70%
Employee referral rates by specific
segment
Cycle time to competency or full
productivity
Employee referral rates
High Market Performers
Low Market Performers
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Nuggets from the book…
“This volatile business context accelerated the need for
Hertz to implement integrated structures, thus eliminating
silos not only within HR, but across the entire enterprise.”
Karl-Heinz Oehler
VP, Global Talent
Management
Hertz
“Adopting new behaviors can only be encouraged,
implemented, and sustained if they are properly
compensated and rewarded.”
“… cutting a budget meant not doing what the business
leaders asked for in the first place.”
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0% 20% 40% 60%
To recognize and reward high performers
Low Performing Orgs
High Performing Orgs
Rewarding high performers
What are the primary drivers for pay-for-performance
programs in your organization?
32%
47%
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37% of HPOs consider their P4P strategy to be highly effective at improving individual performance
16% of LPOs consider their P4P strategy to be highly effective at improving individual performance
31% of HPOs give their highest performers merit increases of 7% or more
17% of LPOs give their highest performers merit increases of 7% or more
25% of HPOs give their highest performers 150% or more of their annual
bonus target
0% of LPOs give their highest performers 150% or more of their annual bonus target
Rewarding high performers
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Nuggets from the book…
“The existence of an effective performance management
system is often the major differentiator between organizations
that produce adequate results and those that excel.”
Edward Lawler III
Distinguished
Professor of Business
USC
“People at all organizational levels go through the
motion of formulaic performance appraisals with
astonishing insincerity and have little to show for it.”
“All too often in traditional organizations,
performance appraisal is something “the top tells
the middle to do to the bottom.”
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The decline of forced ranking
0%
5%
10%
15%
20%
25%
Forced Distribution Forced Ranking
Forced Distribution & Ranking Trends Among High-Performance Organizations
2009 2011
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Nuggets from the book…
“In the business world, CEOs have one priority: growth. In the
world of talent management, practitioners should only have
one priority: their CEO’s vision.”
Annmarie Neal
Vice President “Today’s performance management systems must link to
three imperatives in order to drive the growth our CEO’s
need; business integration, organizational performance,
and an emphasis on return on investment.”
“And if culture will eat strategy for lunch, then
traditional performance management systems will
eat innovation for lunch.”
Robert Kovach
Director
Cisco Center for
Collaborative Leadership
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1. The performance management process includes developmental plans for the next work period
2. Manager training is provided on conducting a performance appraisal meeting
3. The quality of performance appraisals is measured 4. There is a system in place to address and resolve poor
performance 5. The appraisal includes information other than that based on the
judgment of managers 6. The performance management process is consistent across the
organization 7. Employees can expect feedback on their performance more often
than once a year 8. 360˚ or multi-rater feedback is used to support the performance
management process 9. The performance management process includes ongoing goal
review and feedback from managers
9 Keys to Performance Management
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Nuggets from the book…
“Our goal is to have a minimum of two successors for
each critical job.”
Rob Reindl
VP Human Resources
Edwards LifeSciences
“A few years back, I asked my compensation leader
for the average bonus percentage paid to all top
talent and the average bonus percentage paid to the
rest of the salary exempt employees. Believe it or
not, top talent was lower.”
“During a decade when many organizations faced
significant turmoil due to economic conditions that
challenged sales growth, Edwards’ talent
performed extremely well. It is talent that executes
business strategies.”
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Next
Best Most high-
performance companies do it
The Rest
Most companies do it, but it has little impact on performance
Highly correlated with high-performance, yet most companies don’t do it
Best, Next and “The Rest” practices for developing
those in the succession planning pipeline
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Rest 76% of all respondents say their organizations use senior leader’s
nomination to identify candidates for succession planning to a high or very high extent, but this shows the weakest correlation with
succession planning success.
Some succession candidate identification tools
have a greater impact than others
Best 57% of use designation as high-potential talent to identify candidates
to a high or very high extent, with a .23 correlation with success.
Next 16% of use other types of assessment, such as psychological testing,
which has a .30 correlation with success.
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Promotion Rate
Promotion Rate is defined as a change in job code and an increase in salary in the HRIS system of record including progression promotions, internal hires, development assignments
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Internal Placement Rate
Internal Hire is defined as a current employee is selected for a role that was posted on an external job board
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Quality of Movement Scorecard
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Nuggets from the book…
“3M has been actively measuring employee attitudes
about the workplace since 1951.”
Karen Paul
Manager
HR Measurement
3M
“Innovation, arguably 3M’s most treasured asset,
rests upon and is fueled by employee engagement.”
“At 3M, managing and engaging talent isn’t an
annual ‘event,’ but a continuous process,
composed of various integrated sub-processes,
evaluations and tools.”
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Disengaged 23.40%
Moderately Engaged42.60%
Highly Engaged 34.00%
Estimate the percentage of your workforce that you
believe fit into the following categories
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Highly Engaged
22%
Moderately Engaged
42%
Disengaged or
Minimally Engaged
36%
Low Market Performers High Market Performers
Highly Engaged
42%
Moderately Engaged
42%
Disengaged or Minimally
Engaged 16%
Perceived degree of worker engagement
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Nuggets from the book…
“One person desperately wants flexibility, another wants fun,
and yet another craves stability. But how could we have
known? We can only know, and then deliver, by asking.”
Bev Kaye
Founder and CEO
Career Systems
International
“Why are we so willing to conduct exit interviews, but
seldom take the time or summon the courage to
conduct stay interviews with the people we can least
afford to lose?”
“We know of a CEO who charged $30,000 to a
manager’s operating budget because he needlessly
allowed a talented person to leave. Now, that’s what
we call holding someone accountable.” Sharon Jordan-Evans
Founder and CEO
Jordan-Evans Group
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Attrition Metrics – Tactical
Finding: When comparing large organizations (10,000+ employees), there is no significant difference between higher- and lower-performers’ likelihood of measuring tactical retention metrics.
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Attrition Metrics – Strategic
Finding: When comparing large organizations (10,000+ employees) higher-performers are more likely to measure who is leaving the organization than lower performers.
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Nuggets from the book…
“Unfortunately, integration isn't easy and can quickly
degrade over time. The reality is that knitting talent
things together is hard work because there are as
many forces pulling us apart as pulling us together.”
Kevin Wilde
VP, Organizational
Effectiveness & CLO
General Mills
“The best systems providers are promoting
integrated, full-suite talent management systems.
The evolution is promising but the conversion
process usually means someone gives up their
favorite functionality for the greater (promised) good.”
“I've never seen an organization overcome poor
managerial talent management habits by imposing
a sophisticated out-of-the-box software package.”
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Integration is a challenge for all organizations
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There are no more Learning Mgt. System, Recruiting or Performance Mgt. Vendors Everyone claims to be an Integrated Talent Management Vendor
M&A will continue to be the primary vehicle to get there Taleo buys Vurv and Learn.com Authoria & PeopleClick merge StepStone buys Mr Ted ADP buys Workscape Kenexa buys Salary.com Cornerstone IPO’s and buys Sonar6 SumTotal buys Softscape, GeoLearning, CyberShift and Accero SuccessFactors buys InfoHRM, CubeTree, Jambok & Plateau SAP buys SuccessFactors Oracle buys Taleo Salesforce buys Rypple IBM buys Kenexa
A note on ITM technology vendors
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M&A: Four Primary Areas Recruiting
Performance Learning
HRIS/ERP
ITM
Source: i4cp
Note: Most of these
companies consider
themselves ITM
vendors; areas shown
represent their “roots”
“Know the Roots”
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Nuggets from the book…
“Talent differentiates, drives productivity, determines
customer service and increases intangible shareholder
value. Talent matters. Talent is too important to be left to
uncoordinated events.”
Dave Ulrich
Professor of Business
University of Michigan
“Simply stated, competence deals with the head
(being able), commitment with the hands and feet
(being there), and contribution with the heart
(simply being).”
“An emerging talent formula might be:
competence x commitment x contribution = talent.”
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Corporate
411 First Avenue South • Suite 403 • Seattle, WA, U.S.A. 98104
Telephone 866-375-i4cp (4427) • Fax 206-624-6951
Research
8950 Ninth Street North• Suite 115 • St. Petersburg, FL, U.S.A. 33702
Telephone 727-345-2226 • Fax 727-345-1254
www.i4cp.com
For More Information: [email protected]
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