View
28
Download
0
Category
Tags:
Preview:
DESCRIPTION
TALENT MANAGEMENT & Succesion Management. Why Talent management is Important ?. - PowerPoint PPT Presentation
Citation preview
TALENT MANAGEMENT
& Succesion Management
TALENT MANAGEMENT
& Succesion Management
Why Talent management is Important ?
• The things that wakes me up in the middle of the nights is not what might happen to the economy or what our competitors might do next, it is worrying about whether we have the leadership capacity and talent to implement the new and more complex global strategies
David Whitman,Chairman, President and CEOWhirpool Corporation
Why Talent management Important ?(Cont’d)
• Survey of 400 Fortune Companies revealed that :– Identifying and developing leaders is the single most
pressing issue in their companies– Only 8 % rated their company’s leadership as
excellent– Nearly 50% rater their leadership capacity to be fair
or poorConference Board DDI
• On average, organizations will lose one third of their executives to retirement within next 5 years
DDI research ,
Why Talent management Important ? (Cont’d)
• Among approximately 6.000 respondents, 2/3 reported that their current leader displays behaviours that could derail his/her career
• On average , organizations will pay $1.000.000 each time an executive role is filled with an external candidate
Development Dimensions International
• Four in ten leaders fail within the first 18 months on the job
Manchester Consulting
What is talent ?• Talent is the sum of a person’s abilities-his
or her intrinsic gifts, skills, knowledge, experience, intelligence, judgment,
attitude, character, and drive. It also includes his or her ability to learn and grow
• There is no universal definition of an outstanding manager
• Each company must understand the specific talent profile that is right for it
The War for Talent by Michaels, Helen Handfield-Jones and Beth Axelrod
What is talent ?• The resource that includes the potential
and realized capacities of individual and groups and how they are organized,
including those within the organization and those who might join the organization
Beyond HR – New Science of Human Capital, John W. Boudreau & Peter M. Ramstad
MANAGERIAL TALENT
• Some combination of a sharp strategic mind, leadership ability,
emotional maturity, communications skills, the ability to attract and inspire
other talented people, entrepreneurial instinct, functional
skills, and the ability to deliver results
The War for Talent by Michaels, Helen Handfield-Jones and Beth Axelrod
Talent Management Definition
• DDI defines talent management as the system in which people are recruited, developed, promoted, and retained to optimize the organization’s ability to realize positive business outcomes in the face of shifting competitive landscapes and labor requirements.
More specifically …..
• Talent management is a business process that systematically closes the gap between the talent an organization has and the talent it needs to successfully respond to current and emerging business challenges.
THE WAR FOR TALENT surveys
• To understand how companies build a strong pool of managerial talent - how they attract, develop, and retain the
people in the top 200 managerial position and how they build a pipeline of younger talent that might one day move into more
senior positions
The War for Talent by Michaels, Helen Handfield-Jones and Beth Axelrod
WHAT’S DRIVING THE CURRENT EMPHASIS ON TALENT MANAGEMENT?• There is a demonstrated relationship
between better talent and better business performance.
• Talent is a rapidly increasing source of value creation.
• The context in which we do business is more complex and dynamic.
• Employee expectations are also changing.
• Workforce demographics are evolving.
Growing propensity to switch companies
The Old Reality The New RealityPeople need companies Companies need people
Machines, capital, and geography are competitive
advantage
Talented people are the competitive advantage
Better talent makes some difference
Better talent makes a huge difference
Jobs are scarce Talented people are scarce
Employees are loyal and jobs are secure
People are mobile and their commitment is short term
People accept the standard package they are offered
People demand much more
A WHOLE NEW APPROACH TO TALENT MANAGEMENT
1. Embrace a talent mindset2. Craft a winning employees value
proposition3. Rebuild your recruiting strategy4. Weave development into your
organization5. Differentiate and affirm your people
NEW WAY OF MANAGING TALENTThe Old Way The New Way
HR is responsible for people management
All managers, starting with the CEO, are accountable for strengthening their talent pool
We provide good pay and benefits
We shape our company, our jobs, even our strategy to appeal to talented people
Recruiting is like purchasing Recruiting is like marketing
We think development happens in training programs
We fuel development primarily through stretch jobs, coaching, and mentoring
We treat everyone the same, and like to think that everyone
is equally capable
We affirm all our people, but invest differentially in our A, B, and C players
STARTS WITH A TALENT MINDSET
Old Mindset About People
New Talent Mindset
A vague notion that ‘people are our most important asset’
A deep conviction that better talent leads to better corporate performance
HR is responsible for people management
All managers are accountable for strengthening their talent pool
We have a two day succession planning exercise once in a
year
Talent management is a central part of how we run the company
I work with the people I inherit I take bold actions to build the talent pool I need
TALENT IS EVERY LEADER’S JOB
• Establish the gold standard for talent• Get actively involved in people decisions
deep within the organization• Drive a simple, probing talent review
process• Instill a talent mindset in all managers
throughout the organization• Invest real money in talent• Hold themselves and their managers
accountable for strength of the talent pools they build
REBUILD RECRUITING STRATEGYOld Recruiting
StrategiesNew Recruiting Strategies
Grow all your own talent Pump talent in at all levels
Recruit for vacant positions Hunt for talent all the time
Go to a few traditional sources Tap many diverse pools of talent
Advertise to job hunters Find ways to reach passive candidates
Specify a compensation range and stay within it
Break the compensation rules to get the candidates you
want Recruiting is about screening Recruiting is about selling as
well as screening
Hire as needed with no overall plan
Develop a recruiting strategy for each type of talent
New approach to DevelopmentOld Approach to
DevelopmentNew Approach to Development
Development just happens Development is woven into the fabric of the organization
Development means training Development primarily means challenging experiences, coaching, feedback, and mentoring
The unit owns the talent; people don’t move across units
The company owns the talent; people move easily around the company
Only poor performance have development needs
Everyone has development needs and receives coaching
A few lucky people find mentors Mentors are assigned to every high-potential person
RUN A ROBUST TALENT REVIEW PROCESSTraditional Succession
PlanningRobust Talent Review
A half day session once a year at corporate headquarters
A full day on-site for each division
Discuss possible successors Discuss quality of incumbents
Review individuals Review individuals and the talent strength each unit, and discuss other issues such as retention or recruiting
Polite, senatorial presentations
Rigorous, candid debate
No effort to calibrate assessment
Drive to a distribution of ratings
No action plans agreed to Specific action plans written and followed up for each unit
An annual paper exercise As important and intense as budget process, with real accountability and a performance focus
NEW PAY PHILOSOPHY
Old Pay Philosophy New Pay Philosophy
Pay for the job Pay for the person and the performance
Job-scope and seniority drive pay
Value creation drives pay
Pay what others in the company get (internal equity)
Pay what the individual could get elsewhere (market equity)
Set a range and range and hire within it
Break the compensation rules to hire the right candidate
Talent Management (DDI’s view)
• Best Practice #1: Start with the end in mind—your current and future business needs
– “We are a global automobile manufacturer that has steadily lost market share. What sort of talent are we going to need to shake up the status quo, rejuvenate our brand, and give us the action-orientation required to turn things around?”
– “We are a utility in the midst of deregula- tion. Consumers will have choices. On top of that, we are getting into new busi- nesses. How will the skills of our current talent fit with our new business model?”
Talent Management (DDI’s view)
• Best Practice #2: Talent management is Job #1 for senior leaders.
• Best Practice #3: You must know what you’re looking for—the role of success profiles.
• Best Practice #4: Build a systematic and integrated approach to all work- force development activities.
• Best Practice #5: Talent management is much more than succession management– Effective talent management requires not only
developing people for their current roles, but also getting them ready for their next transition
Talent Management (DDI’s view)
• Best Practice #6: Clear distinctions are made between potential, performance, and readiness.
• Best Practice #7: Look at the team mosaic
• Best Practice #8: Turn your leaders into talent managers.
• Best Practice #9: Talent management is all about putting the right people in the right jobs
Talent Development
High potentials stand out
TALENT MANAGEMENT ASSESSMENT TOOLS
• Performance appraisal• Potential forecast• Measurement scales for performance
and potential• Core/institutional competencies• Mapping and weighting
competencies• Segmenting the Talent Reservoir• Employee and job demographics
Talent Development
Talent Development Goal : Acceleration of HiPos in Leadership Talent Pipeline
Executives
Those who leadorganizations
Managers
Those who lead businesses and
people
Domain Experts
Those who do not yet lead people and/or have
technical focus
Talent Pipeline
Accelerate QualityInternal and ExternalTalent in LeadershipPipeline at All Levels
Entry Level
Entry talent – college recruits
Segmentation of PerformancePerformance and Potential Grade
C• Give warning • Provide coaching• Consider if it
appropriate job
A•Plan next move•Provide extra coaching
A+•Plan multiple moves
•Ensure pay is sufficient
B•Keep in place
A•Identify next development
opportunity
C•Manage out
High
Low
Low High
Potential
Performance
THE CLASSIFICATION OF EMPLOYEE• Superkeepers
– Those employees who greatly exceed expectation– Demonstrated superior performance– Who have inspired others to achieve superior
performance– Who embody the core competencies of the organization
• Keepers – Those employees who exceed organization expectation
• Solid Citizen– Meet organization expectation
• Misfits– Employees who do not meet organization expectations for
performance, working with others, and/or organization competencies
Talent Development
High potential identification• High potential = behavior + track record +
ambition + stretch; – High performers with the ambition to be treated as key talent – Has what it takes to grow into bigger, more complex, more senior roles in
the organization (cognitive capacity, domain expertise, commitment, maturity/balance)
– Demonstrates personal accountability and initiative– They can be found in the top 20 ranking OR in the 70 ranking due to their
current objectives and situation
• High performers = behavior + track record; – Consistently demonstrates and embraces leadership values– Has a record over time of sustained high performance– Has what it takes to grow to their next role – domain expertise
• Understand the difference between High Performers and High Potentials– Ambition and Stretch– Provide examples
Page 30
HiPoTalent
Assessment &Planning
360 degree Survey + LPIIDP
DevelopDifferentiated needs
Targeted development
activities
Evaluate PerformanceEffectiveness
PPRIDP progress
HiPo Development Cycle
Reward &Retain
Meritocracy Recognize
SelectionConsistent
ProcessEvaluation criteria
Talent Pipeline
Studies in 1998 by the Hay Group showed that organization with better operating statistics are morelikely to have succession management programs –
Grow your own leader- William C Byham,PhD
Recommended