Managing Talent: Demands, Challenges and Uncertainty from Staff

Managing Talent:Demands, Challenges and Uncertainty from StaffMAY 23, 2012

2© 2012 Hay Group. All rights reserved

Presenters

Connie Schroyer, Vice President & General Manager, Hay Group

- [email protected] | 703.841.3147

Myriam Michaels, Principal, Hay Group


Juliet N. Kintu, Projects Officer, Internal Controls & Special Projects

CFA

mailto:[email protected]



Agenda

1

2

3

4

5

CFA‟s Objective

What is a “Competency Framework”

Project Overview

Hay Group Approach

Success for CFA

Questions/Discussion6


Agenda

As a reward practitioner, we are sure you have heard employees ask:

How do I progress in my career?

Most organizations do a very good job of identifying reward strategies and pay

philosophies, but linking those strategies to career progression has always

been a challenge.

Our discussion today will focus on “Talent Management” and a really

interesting case study with a client who was struggling with managing how

employees acquired and developed the necessary skills and competencies

and aligning those with career progression.


Agenda

01CFA‟s Objective


Who is CFA?

The International Finance Corporation (IFC), the private-sector arm of

the World Bank Group, fosters sustainable economic growth in

developing countries by financing private sector investment, mobilizing

capital in the international financial markets, and providing advisory

services to businesses and governments.

The Financial Operations and Accounting Department (CFA) within

the International Finance Corporation is reward strategic client for the

Hay Group.

The focus was to work closely with a recently restructured area of the

organization, the finance and accounting group, given the recent re-

alignment of functions and their strategy to be well positioned for

success.


CFA’s Business Needs

CFA was looking for a talent management system that was:

1. Forward-looking and linked to the strategic direction of the department;

and

2. Articulated the behaviors that support growth and the global

decentralization of their operations.

It is important for an organization to consistently and proactively use

competencies (both technical and behavioral) to support career

management processes impacting employees.

We created a “competency framework” to ensure the competencies

captured, in a clear and understandable way, information that can be

utilized for hiring, development, performance management, and

promotions.


CFA’s objective and needs

Our partnership in developing a competency framework focused on:

1. Creating simple, practical approach to designing competency profiles

2. Reviewing and assessing roles and creating job families

3. Introducing competencies in the various units in coordination with HR

4. Supporting and training staff and management in the framework through a

detailed communication and implementation process

It is important for there to be a common thread in organizations.

A thread that links all of the people processes to the direction of the organization. A single thread that creates clarity for employees.

That thread is competencies.

CFA wanted to create a “culture of competencies.”

02What is a Competency Framework?


What is a Competency Framework?

A Competency Framework is established by working with staff, conducting interviews

and discussions regarding required skills and abilities that drive outstanding

performance now and in the future.

A competency: Defined as any characteristic of an individual that predicts outstanding

performance in a given job, role, organization or culture. We focus on both technical

competencies and behavioral competencies.

What does a competency framework do?

Focuses performance discussions on the key behaviors for training and staff

development, career aspirations and goals

Provides staff with specified competencies to support and plan for their career

advancement

Provides a tool to assess staff skills and competency gaps in order to direct

resources to meet staff needs

Allows Management to better align training with staff development needs

Provides a clear, consistent, comprehensive framework on which to base

talent management decisions


Why a Competency Framework?

The Competency Framework has been developed as a response to:

1.Staff request for clarification on career path opportunities within CFA and the

criteria & skills needed to support high level performance, promotions & overall

career development.

2.Management‟s need to clarify expectations, define future development needs, and do

more focused recruitment and development planning.

The Competency Framework:

Supports an organization‟s mission, vision and values

Is an essential component of career planning, talent management and positionmanagement

Can be customized to unique roles within an organization and in line with “rolemodel” behaviors that are necessary to succeed


Why a Competency Framework?

Key Tool for:

Recruitment: What minimum experience, qualifications and skills do we need to

fill positions that are necessary to fulfill our mandate?

Staff Development & the Learning Curriculum: What gaps do we have in the skills

set of our staff that are vital in execution of our mandate? What learning should

we consider in order to address the gaps? How will the framework integrate with

the Learning Curriculum?

Staff Management & Career-Pathing: How do we manage the talent we have?

What staff opportunities are available across the organization? How can we

effectively rotate staff to develop needed skills while ensuring seamless

operations? How do we manage career-pathing?

Position Management: How many positions and at what levels do we need to

fulfill our mandate?


Create & manage the interdependencies

Talent development

Position

Management

Learning

curriculum

Performance

evaluation

Challenge/Opportunity: Integrate the Competency Framework and

Learning Curriculum and link to the Performance Evaluation and Talent

Development

As CFA Management described:

„we need staff to become consistently strong at active participation, asking the right questions, talking to the right people, challenging assumptions and providing alternatives’


Competency Framework Model

Competencies don’t drive change; they are a tool that can be used to drive

change, as part of an integrated change management program which aligns

the above seven levers.





The framework describes the Technical and Behavioral Competencies needed for

superior performance within CFA.

It covers key areas of work using the following job families:

- Operations

- Policy, Compliance & Governance

- Business Partnership

- Investment Portfolio Management

The framework has been developed based on interviews & working sessions with

senior management and staff during which qualities and skills needed to perform

well in these roles have been described.

The framework describes technical competencies and behavioral competencies,

each is important for success within CFA.



Opportunity to undertake a

broader variety of assignments

facilitating career management,

career development & talent

management

Clarity about what is expected

of staff them in their roles so that

they can have effective

discussions with their managers.

Equity in how they are

evaluated for their contribution to

success in their role.

Consistency: Job families

designed consistently for all staff

to capture technical, and

behavioral competencies.

Flexibility: Recruiting and

staffing flexibility and can more

easily allocate resources based

on operational need and talent

availability.

Institutional Effectiveness:

Less time and effort expended by

staff, managers, Human

Resources on performance

evaluation.

Staff Gains:Management

Achieves:To make changes

that benefit

both….



03Project overview


Hay Group Goals for working with CFA

To meet their competency development objectives.

To put into place trustworthy processes for assessing and developing

talent.

To think „out of silos‟ when planning.

To work in partnership with them.

To incorporate valid competencies and clarity of roles that:

Account for future success factors;

Separate-out subjective political considerations;

Become a reliable platform for all learning and human resource

systems; and

Allow for attaining business results


Approach Overview

Behavioral

Capability

Framework

Technical

Capability

Framework

Job Family

Architecture

Allocation of roles to

families and levels

Assessment of current

capabilities against the

model

1. Strategic

Interviews

2. Employee

Focus Groups

4. Manager

Validation

Job Family Model

(Levels, Purpose, Accountabilities,

Technical and Behavioral Capabilities)

Definition of

Career Paths

3. Discussions

with Business

Leads and HR

IMPLEMENTATION & COMMUNICATION5.

Implementation

Development of

learning &

development

resources


CFA Senior Management Interviews

One-on-one interviews with senior leaders with the following

objectives:

Gain clarity on the vision, mission and strategy

Understand the organizational culture and values

Identify key business metrics

Identify what senior management consider as critical characteristics

for moving the organization forward

Gain buy-in


CFA Focus Groups

Meetings with job/role incumbents and/or their managers to identify

current and future critical success factors. The following areas are

covered:

Job responsibilities

Job challenges

Performance measures

Characteristics of superior performance

Examples of competencies and importance


Documentation Review

A review of existing documents to gain insight into the

current and future requirements of jobs/roles included in

the competency study the organizational overall (to ensure

consistency with current HR systems and grades

structures)

Included utilizing existing organizational data on staff such

as employee surveys

04Hay Group approach


Hay Group Approach

The Competency Framework should essentially have three core elements that

will benefit both the organization and the individual:

Understanding Work: For talent to be managed effectively there is a need

to understand what it takes to be effective in a role (job evaluation was

utilized)

Understanding People: Understanding of the position is as important as

an understanding of the people (behavioral competency model utilized)

Managing People and Positions: A sound understanding of the positions

and of the people provides the building blocks of a Competency

Framework.


Hay Group’s Methodology spansvital focus areas


Understanding Work – Hay Job Evaluation

INPUTS PROCESS OUTPUTS

(KNOW HOW)

• Technical Know How

• Management Breadth

• Human Relations Skills

(PROBLEM SOLVING)

• Thinking environment

• Thinking Challenge

(ACCOUNTABILITY)

• Freedom to Act

• Magnitude

• Impact

We measure….

System formulated by Edward Hay and has been researched, tested and validated across the

world for the last 60 years.

Using a strict and controlled process

Job Information

Methodology

JudgmentJob Size

(Haypoints)

• Position Description Questionnaire

• Knowledge and understanding of the

organization

•Hay Guide Chart-Profile Method

• Evaluate jobs, not people or titles

• Evaluate jobs as they are today, not yesterday or

tomorrow


Understanding Work – Technical Competencies

Understand the current and future organizational needs in terms of specific

roles. Considering context in detail:

future strategy

operating model

organization structure

different types of roles and their requirements

Define the roles and number of positions

Create levels for the technical competencies that are priority to measure

(skills, etc)

Set target levels for each of these factors


Hay Group Behavioral Competency approach

What are competencies?

“They are underlying characteristics which enable someone to perform a job

better in more situations, more often, with better results”

Competencies are those factors that distinguish the best from the rest in a

given role

Competencies can be deep seated or easily observed qualities of people

(motivation, traits, etc.)

All competencies can be measured

Competencies are forward-looking. They describe the behaviors and attributes staff and managers will need in order to meet future challenges.

They help organizations clarify expectations, define future development needs, and do more focused recruitment and development planning.

Competencies provide a sound basis for consistent and objective performance standards by creating shared language about what is needed and expected in an organization.


Competencies

Skills and knowledge form the tip of the

iceberg. The underlying competencies are

less visible but extensively direct and control

behaviour

Social Role, Values, and Self-image exist at

conscious or partly conscious levels

Traits and Motives exist further below the

surfaceKnowledge

Skills

Social Role

Self-Image,

Values

Traits

Motives


Why is it not obvious?


Competencies and the Complexity of Roles


Integrated Talent Management Framework

Research based solutions

Expertise in behavior change

We know what distinguishes outstanding from typical

We know how to help people change

We know how to produce tangible results

Expertise in leadership

We know how to build superior management capability.

We partner with Harvard University on leadership and

management behaviors and high-performing teams.



1. Decode the strategy and define the predictors for success

2. Evaluate talent to strategy

3. Enhance talent to deliver strategy

4. Develop a talent management culture



Understanding roles and

accountabilities needed in the future

Determining the corresponding

leadership styles and behaviors that

are future-focused

Creating a winning ethos in terms of

climate and culture

Best Practice organizations translate strategy into critical talent

management factors such as:



Incorporate internal and external benchmarks to keep

the bar high

– Benchmark against external world-class

standards

– Ensure no “slippage” in thinking that average is

good enough

Review talent with rigor against the predictors of

success

Follow through on the implications and results of

talent reviews

Best Practice organizations use the measurement of potential and

performance as a starting point to evaluating talent. Then they:



Mapping realistic career paths

Recognizing that lateral moves

often present bigger challenges

than moves up the hierarchy

On-boarding for internal movement

into key roles

Leadership development that is

anchored to strategic intent

Best Practice organizations work hard at growing their talent

and coaching leaders through role transitions. They focus on:



Talent management is viewed as a life cycle from

entry to departure

Talent is mapped against role demands to

determine gaps and potential successors

Talent is re-aligned to its best fit with organization

needs and role demands

Businesses use the talent management process to

continually improve decision making and realign to

the organization‟s overall business strategy

In Best Practice organizations, HR supports the process, while

the businesses own it. In addition:

05Success for CFA


Success for Both CFA and Staff

Managers Will Use Competencies…

As a clear, consistent, and comprehensive framework on which to base reward,

promotion and career advancement decisions

To discuss career goals with staff and identify performance strengths/gaps and future

learning opportunities

To focus performance management and coaching discussions with staff on tangible

behaviors

To help select the best leaders to drive success and build the desired organizational

culture

Staff Will Use Competencies…

To plan ahead and develop appropriate behaviors for career advancement

To discuss career aspirations and goals with managers/directors

To gain a clearer sense of what it takes to advance

As a tool to identify learning opportunities


Using the Competency Framework to Support Career Management


Success Means Focus on Implementation & Communication!

Below is our view on the key criteria that competencies must meet in order to be

effectively implemented.

• Use internal best practice and role models to shape the competencies – this ensures they reflect the reality of how work gets done in the organization.

Accurate

• Focus on the fewest competencies that make the biggest difference – don‟t try to describe every single skill required to execute the role.

• Use examples and provide employees with guidance on how to develop the competencies, so they become real.

Understandable

• Use a blend of internal best practice and role models, and external benchmarks, to shape the competencies, to avoid common pushback such as „We‟re unique and different, so these competencies don‟t apply to us.‟

Credible

How to ensure success


Implementation

In order for a culture of competencies to be embedded and for this model to be

useful, the following implementation processes were used:

Messaging About New Competencies

Clear messaging to staff about why we need the competency framework and

why it is important to have a new competency model (What is in it for me?)

Training for both managers and staff on the competency model and practice

sessions using the model

HR Systems

Consistency in messaging and application of the competency model.

Obtained Managers buy-in so they use the model as a tool for performance

feedback and staff development.

Defined promotion standards and career paths. Created supporting tools

and resources for staff.

Resolved grading issues and ensure consistent application of grades and

levels within and across the organization.


Communication:Competency Framework Booklet

Competency

Framework

Booklet

The Competency Framework Booklet provides a “one-stop shop” on the

Competency Framework components, how it will be utilized to support recruitment,

staff development and management, talent management and position management


Organizational Impact

Growing job demands and lack of clarity around job expectations can

contribute to a feeling of being taken advantage of.

This project stressed the importance of analyzing employee feelings related

to professional ambiguity and the need to support career advancement in a

fair and consistent manner.

Turning employee concerns and doubts into a desire to succeed and share

the passion and mission can have a significant impact on organizational

results.

Engagement, collaboration and curiosity in work and partnerships with

others will benefit both the employee and employer in creating successes.

Creating a platform where everyone has an opportunity to be coached,

challenged and grow, be recognized and rewarded will provide both short

and long term success.


Thank You and Remember…

Your best bets are people who will be able to grow and develop.

They have these characteristics:

Thinking beyond the boundaries

Curiosity and eagerness to learn

Social understanding and empathy

Emotional balance

So, Know, Grow and Flow:

So what… What will we need for the future?

Know the talent available to you

Grow the capability you need

Flow talent through the organization

Q&A


Presenters

Connie Schroyer, Vice President & General Manager, Hay Group


Myriam Michaels, Principal, Hay Group


Juliet N. Kintu, Projects Officer, Internal Controls & Special Projects

CFA

