Talent Champions

8/18/2019 Talent Champions

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Creating Talent Champions(Volume II)Best Practices for Engaging Business Leaders in

Talent Management

Please note that the CEB program names referenced in this document have changed since the time of publication.


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© 2008 Corporate Executive Board. All Rights Reserved.

Note to Members

This project was researched and written to fulfill t he research requests of several members of the CorporateExecutive Board and as a result may not satisfy the informat ion needs of all member companies. The Corporate

Executive Board encourages members who have additional questions about this topic to contact the Board

staff for furt her discussion. Descriptions or viewpoints contained herein regarding organizations profiled inthis report do not necessarily reflect the policies or viewpoints of those organizations.

Confidentiality of Findings

This document has been prepared by t he Corporate Executive Board for the exclusive use of its members. It

contains valuable proprietary information belonging to the Corporate Executive Board, and each membershould make it available only to those employees who require such access in order to learn from the material

provided herein and who undertake not to disclose it to thi rd parties. In the event that you are unwil ling to

assume this confidentiality obligation, please return this document and all copies in your possession promptlyto the Corporate Executive Board.

Legal Caveat

The Corporate Leadership Council has worked to ensure the accuracy of the i nformation it provides to itsmembers. This report relies upon data obtained from many sources, however, and the Corporate Leadership

Council cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the

Corporate Leadership Council is not engaged in rendering legal, accounting, or other professional services.Its reports should not be construed as professional advice on any part icular set of facts or circumstances.

Members requiring such services are advised to consult an appropriate professional. Neither the Corporate

Executive Board nor its programs are responsible for any claims or losses that may arise from a) any errors oromissions in their reports, whether caused by the Corporate Leadership Council or its sources, or b) reliance

upon any recommendation made by the Corporate Leadership Council.

CLC1ABSPK8

Corporate Leadership Council

www.clc.executiveboard.com

Washington, D.C.Telephone: +1-571-303-3000Fax: +1-571-303-3100

ChicagoTelephone: +1-312-730-9000Fax: +1-312-730-9100

San FranciscoTelephone: +1-415-293-5825Fax: +1-415-293-5826

LondonTelephone: +44-(0)20-7632-6000Fax: +44-(0)20-7632-6001

New DelhiTelephone: +91-124-417-8500Fax: +91-124-417-8501

Sydney Telephone: +61-2-8216-0831Fax: +61-2-8216-0701

Corporate Leadership Council

Senior AnalystsTiffany Fountain

Collin FrantzStacia Sherman Garr

Amanda Joseph-Little

Consultant

Sari Levine

Project Manager

Adam Brinegar

Practice Managers

Christoffer EllehuusBrian Kropp

Executive Directors

Jean Martin-WeinsteinConrad Schmidt

General ManagerPeter Freire

Creative Solutions Group

Senior Graphic Design SpecialistAlicia Peters

Contributing Designers

Andrew Bradley

Erin O'Donnell

Senior Publications Editor

Kevin Mullooly



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CLC1ABSPK8 iv

The Study in Eight Conclusions

Key Conclusion HR Implication CLC Resources

1. Few Business Leaders Are Fully Committed to andEffective at Talent Management—Only 19% of businessleaders—Talent Champions—are committed to andeffective at achieving superior talent outcomes.

• HR must work to improve the 81% of business leaderswho fail to achieve superior talent outcomes.

p. 11

2. Business Leaders Achieve Better Outcomes WhenCommitted to and Effective at Talent Management—The combination of improving the commitment toand effectiveness at talent management can result inan up to 29% increase in talent outcomes. Focusing on

commitment or effectiveness in isolation has much lessimpact, 2% and 12%, respectively.

• HR needs to focus on improving effectiveness andcommitment in business leaders, not one or the other,to drive the greatest talent outcomes possible.

p. 13

3. The Most Effective HR Strategies to ImproveCommitment and Effectiveness Are Relevance,Consumability, and Accountability—To improvebusiness leaders’ commitment to and effectivenessat talent management, organizations need to focuson increasing the relevance, consumability, andaccountability of talent programs and activities.

• HR must improve the relevance and consumabilityof talent programs and increase business leaderaccountability for talent outcomes to ensure impact.

p. 17

4. Improve the Relevance of Talent Activities byIntegrating with Business Planning—A line-owned,business integrated talent plan clarifies the lin kages

between business and talent activities and enables leadersto commit to and execute on talent activities that areconsistent with and relevant to business priorities.

• Create one annual opportunit y for business leadersto gain an integrated understanding of their talentchallenges anchored in the leaders’ business objectives.

p. 33



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CLC1ABSPK8 v

The Study in Eight Conclusions (Continued)

Key Conclusion HR Implication CLC Resources

5. Improve Consumability of Talent Activities by GuidingBusiness Leaders’ Talent Decisions and by IntegratingSolutions into Business Leaders’ Workflow—Providingbusiness leaders with explicit guidance that helps themmake better talent decisions and delivering solutions thatare responsive to individual business leaders’ workflowneeds matters more to improving consumability thanmaking talent management easier to do.

• Provide business leaders with explicit questions toconsider to guide execution on their talent plans.

• Provide clear guidance on key talent outcomes and theactivities to achieve them.

• Diagnose and respond to indiv idual leaders’ workflowchallenges and needs throughout the design, creation,and delivery of talent management programs.

• Integrate talent management processes into businessprocesses.

p. 57

p. 67

p. 73

p. 77

6. Combine Soft and Hard Accountability to ImproveTalent Outcomes—Hard accountability (e.g., linkingincentives to talent outcomes) underperforms withoutsoft accountability (e.g., using peer rankings based ontalent outcomes). Combining hard and soft accountabilityincreases business leaders’ talent outcomes by anadditional 9% .

• Build transparent scorekeeping processes for key talentmetrics and ensure they are well communicated amongbusiness leaders.

p.95

p. 101

p. 135

7. Business Leaders Need Ownership Over theTalent Priorities and Resources That They AreHeld Accountable For—Increased control of talentmanagement objectives and resources improves businessleaders’ commitment to talent management activities andtalent outcomes.

• Cede ownership and appropriate talent managementresource control to business leaders.

• Help business leaders set their own talent goalsand objectives.

p. 101

p. 119

8. Hold Leaders Accountable for Behaviors andOrganization-Wide Talent Results—Holding leadersaccountable for effective talent management behaviors aswell as organization-wide talent metrics improve long-term sustainability of organization-wide talent results.

• Hold business leaders accountable for business unit–specific as well as organization-wide talent metrics.

• Incorporate qualitative assessments into talentreviews to foster an environment of effective talentmanagement behaviors in the organization.

p. 135



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Table of Contents

Overview of CLC’s Study of Business Leader Effectiveness at Talent Management ix

A Guide to Online Resources at www.clc.executiveboard.com xi

Letter to the Membership xiii

With Sincere Appreciation xiv

Advisors to Our Work xv

Council Essay: Improving Business Leaders’ Commitment to and Effectiveness at Talent Management 1

Chapter I: Build Relevance of Talent Management Programs 21

Practice #1: Integrated Talent Portfolio Review 33

An integrated, structured talent port folio review that engages leaders in identif yingand addressing critical talent management risks to their business objectives

Chapter II: Improve Consumability of Talent Management Programs 49

Practice #2: Human Capital Review Guide for Senior Executives 57

A guide to facilitate ef fective business leader–led HIPO and succession plans

Practice #3: Business Leader People Practice Proficiencies 67

A process and tool to clarify HR and line leaders’ unique roles and activities that most impact talent outcomes

Practice #4: Talent Management Product Creation Guidelines 73

A project management framework and guidelines to ensure HR engages stakeholdersin creating and delivering talent management solutions that meet business needs

Practice #5: Business-Integrated Talent Management Delivery 77

A marketing strategy applied to HR to improve the relevance and consumability of talent management solutions



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Chapter III: Leverage Soft and Hard Accountability to Improve Outcomes 91

Practice #6 : Line Leader–Owned Talent Planning and Accountability 101

A decentralized talent management process that provides individual line l eaders

ownership over talent management priorities, resources, and accountability

Practice #7: Personalized People MBOs 119

A people-focused MBO–setting process for leaders to ensure personal relevance

and create urgency for improving talent outcomes

Practice #8 : “Strength” and “Health” Talent Portfolio Review 135

A talent review and recognit ion process that instills ef fective talent management

behaviors in leaders to ensure organization-wide and long-term impact

Ordering Research 149



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CLC1ABSPK8 viii

The Council’s Talent Champions research identifies profiles of effective talentmanagers and strategies for HR to improve the effectiveness of business leadersat talent management. This series complements the Council’s 2007 research,Building Next-Generation HR–Line Partnerships, which focuses on HR’s role insupporting line leaders. Creating Talent Champions examines the other half ofthe HR–Line relationship—the business leader.

In Volume I of Creating Talent Champions, the Council presents empiricalanalysis of 8,851 completed 180-degree assessments of business leaders atmore than 50 member organizations to understand the competencies, timesignatures, and talent management activities of business leaders. This researchreveals which ski lls, knowledge, and behaviors help leaders achieve superior

talent outcomes.

In this study, Volume II of the research, the Council provides examples oftactics and strategies to effectively engage business leaders in the right talentmanagement activities. In particular, this study helps HR:

• Build Relevance of Talent Management Programs;

• Improve Consumability of Talent Management Programs; and

• Leverage Soft and Hard Accountability to Improve Outcomes.

The Corporate Leadership Council’s Talent Champions Series



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CLC1ABSPK8 ix

Council Series on Creating Talent Champions

Overview of CLC’s Study of Business Leader Effectiveness at Talent Management

Creating Talent Champions(Volume I)

Profiles of Successful Business Leaders: A Quantitative Analysis

Creating Talent Champions(Volume II)

Best Practices for Engaging BusinessLeaders in Talent Management

Creating Talent

Champions

(Volume I)

Creating Talent

Champions

(Volume II)

Critical QuestionsAddressed

• What is the mind-set of a TalentChampion?

• What are the skills and knowledgeof a Talent Champion?

• What talent management activit iesdo Talent Champions focus on?

Critical QuestionsAddressed

• How can HR create talentmanagement activities that arerelevant to the business?

• How can HR improve theconsumability of talent programs?

• What can HR do to leverage softand hard accountability to drivetalent outcomes?



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CLC1ABSPK8 xi

Talent Management Product Creation Guidelines (Juniper)Use this project management framework and diagnostic questions to engagestakeholders in creating and delivering solutions that meet business needs andintegrate with leaders’ workflow.

HR Product Charter Document (Apple)Use this template to apply a product development approach to creating HRprograms to ensure they match business needs.

People Practice Proficiencies Tool (Standard Bank)Use this tool to clarify leaders’ roles and skill needs across each stage of theemployee lifecycle and appropriate HR support for each.

CLC Consumability DiagnosticUse this self-diagnostic to assess the consumability of your talent managementprograms and solutions.

Human Capital Review Guidelines (Marriott)Help prioritize business leader–led HIPO and succession planning activities byproviding them with guidance not only on what to do but also how to do it.

Talent Management Reference Cards (Lion Nathan)

Use these cards to streamline HR communication and improve leader utilizationand impact.

Talent Management Consumability Feedback Survey (Lion Nathan)Use this survey to obtain business leader feedback on how to simplify and improve thevalue and outcome of HR programs.

Strategic People Agenda (SPA) Process Templates (Standard Chartered)Use this presentation template to create an integrated, business leader–led talentreview that is relevant to the individual leader.

Strategic Talent Planning ToolkitUse this end-to-end talent planning toolkit to engage your leaders in creating abusiness-relevant talent plan.

HR Business Partner Conversation Guide toIncrease Business Relevance of Talent Discussions

Give this guide to HR business partners to engage business leaders in abusiness-relevant talent planning discussion.

Line Leader Talent Objective Setting and Resource Allocat ion Tool (Gap)Use this tool to enable business leader ownership of the talent prioritiesand resources for which they are held accountable.

Customized Talent Management Dashboard (Schneider Electric)Use this tool to develop a customized talent dashboard for your business leaders.

Integrating Talent Management into Business Leaders’ Workflow

End-to-End Consumability Strategies and Tools

Creating Talent Champions Access the below tools and templates on the Council’s Web site—

www.clc.executiveboard.com —to improve business leaders’ talent management outcomes

A Guide to Online Resources at www.clc.executiveboard.com

1

2

3

4

12

Shared Goal Template (Pepsi Bottling Group)Use this guide to facilitate discussions between HR business partners and managersaround areas of shared accountability.

13

Business Leader People MBO Selection Tool (CLC)Use this tool to enable leaders to select relevant and high-quality people objectives.

Goal Alignment Checklist (Seagate Technology)Use this template to help HR business partners and business leaders align their goalsat the business unit and enterprise levels.

14

15

8

6

11

7

5

9

10

Build Relevance of Talent Management Programs Improve Consumability of Talent Management Programs Leverage Soft and Hard Accountability to Improve Outcomes

Diagnosing and Addressing Challenges Driving Effective AccountabilityPrioritizing Talent Management Activities for Business Leaders



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CLC1ABSPK8 xii



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CLC1ABSPK8 xiii

Letter to the Membership

Despite significant investments in talent management programs, many organizations continue toface major talent challenges, including talent and skills shortages. While poor ta lent outcomes can bepartly explained by poor talent management programs, Council research finds that a majority of talentoutcomes is explained by poor HR delivery and line leader execution.

Last year, the Council examined the first part of this challenge—HR service delivery—through its work,Building Next-Generation HR–Line Partnerships, which identified the skil ls, activities, and competencies ofeffective HR business partners.

This year, the Council is examining the other part of the challenge—line leader execution on talentactivities—through the Creating Talent Champions initiative.

This study consists of a two-part investigation:

Creating Talent Champions (Volume I)—Profiles of Successful Business Leaders : A Quantitative Analysis presents a survey-based, quantitative analysis of 8,851 completed 180-degree assessments of businessleaders at more than 50 member organizations to identify the skills, knowledge, and behaviors of thebusiness leaders who achieve superior talent outcomes.

Creating Talent Champions (Volume II)—Best Practices for Engaging Business Leaders in Talent Management provides best practice strategies on how HR can improve business leader effectiveness at andcommitment to talent management.

It is our hope that this initiative wi ll support member organizations in improving the ef fectiveness oftheir business leaders at ta lent management. If there are questions related to improving business leaders’effectiveness at and commitment to ta lent management that you do not find in this study, we encourage

you to contact the Council’s research team for further assistance. As always we encourage and look

forward to your feedback.

With our continued appreciation,

Corporate Leadership CouncilWashington, D.C., Chicago, San Francisco, London, New Delhi, and Sydney September 2008



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CLC1ABSPK8 xiv

With Sincere Appreciation

The Corporate Leadership Council would like to express its gratitude to the following individuals who contributed time and insight to thedevelopment of this study.

Matt PeaseVice President of Executive Solutions

DDI, Inc.

Eric SeversonVice President of HR

Gap Inc. Outlet

John BerisfordSVP of HR

The Pepsi Bottling Group, Inc.

Peter Block Principal

Designed Learning Inc.

Mark DavidsonGlobal HR Program Deployment

Juniper Networks, Inc.

Ricardo RosaHR Director

Standard Bank Group Ltd.—Corporate Services Division

Linda Strom Petchenik Managing Principal

Growthlines, Inc.

Bob BarbourChief Human Resources Officer

Lion Nathan Limited

Tracy KeeversDirector, Leadership Capability Team

Lion Nathan Limited

Trisha WolfeProject Manager , Organizational Development

Schneider Electric North America

Helen Handfield-JonesPresident

Handfield Jones Inc.

Michele DiMartinoSenior Vice President, Human Resources,Global Brand Management and PracticeLeader Organizational Capability

Marriott International, Inc.

Pavneet BajwaTalent Manager, Group Talent Management

Standard Chartered PLC

Geraldine Haley Group Head, Talent Managementand Leadership Development


Pete SmithChief Human Resources Officer

Burger King Corporation

Lisa RobertsSenior Manager, Talent Development

Burger King Corporation



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CLC1ABSPK8 xv

Advisors to Our Work

The Corporate Leadership Council expresses its appreciation to the individuals and organization who have so generously contributed their timeand expertise to our work. Their contributions have been invaluable, and we extend our sincere thanks.

3i Group plcAbbott LaboratoriesAECOM Technology CorporationAir CanadaAlcatel-LucentAllianceBernstein, L.P.Alliance Data Systems CorporationAllianz Global Investors AG

Alstom Power, Inc.Ameriprise Financial, Inc.Apple Inc.Austin EnergyAustralia and New Zealand Banking

Group LimitedAustralian Taxation OfficeAvnet, Inc.Bank of America CorporationBarclays PLCBayer AGBell Canada International, Inc.The Black & Decker CorporationBlue Cross Blue Shield of CaliforniaBMC Software, Inc.Bremer Financial CorporationBT Group plcBurger King Corporation

Canadian Ministry of Government ServicesCanadian Pacific Railway Ltd.Cargill, Inc.Caterpillar, Inc.Canadian Imperial Bank of Commerce (CIBC)The Clorox CompanyCoca-Cola Bottling Co. ConsolidatedCoca-Cola Enterprises, Inc.

Constellation Energy Group, Inc.Corinthian Colleges, Inc.Crosstex Energy Services, L.P.CVS CorporationDeutsche Bank AGDunn & BradstreeteBay, Inc.EnPro Industries, Inc.Fannie MaeFedEx CorporationFerro CorporationFidelity InvestmentsGap Inc. OutletGeneral Motors CorporationGrant Thornton LLPIngeus UK Ltd.ING Groep N.V.Intuit, Inc. JetBlue Airways Corporation

Johns Manville Corporation Johnson & Johnson Juniper Networks, Inc.Levi Strauss & CompanyLion Nathan LimitedLoyalty Management Group LimitedMarriott International, Inc.The McGraw-Hill Companies, Inc.

Menasha Packaging Company LLCNational Oilwell VarcoNestlé UK LtdNew York & CompanyNIKE, Inc.The Pepsi Bottling Group, Inc.The Phoenix Companies, Inc.PMC-Sierra, Inc.The PMI Group, Inc.Ontario Public ServiceQUALCOMM, Inc.QVC, Inc.The Regence GroupREI (Recreational Equipment, Inc.)Reuters Group PLCRoyal Bank of CanadaS.W.I.F.T. SCRLSalt River ProjectSantos Ltd.

Schneider Electric North AmericaScotiabank The Sherwin-Williams CompanySigma-Aldrich Co.SodexhoStandard Bank Group Ltd.—

Corporate Services DivisionStandard Chartered PLC

Sterling Financial CorporationStockland Corporation LimitedSun Microsystems, Inc.SyngentaT. Rowe Price Group, Inc .Telecom Corporation of

New Zealand Ltd.Telstra Corporation LimitedThe TJX Companies, Inc.Unilever PLCUnited States Patent and Trademark OfficeThe University of MichiganUniversity of Notre DameWachovia CorporationWal-Mart Stores, Inc.The Western Union CompanyWyethXerox Corporation



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CLC1ABSPK8 xvi



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CLC1ABSPK8 xvii

Source: Corporate Leadership Council research.

Chapter I:Build Relevance of

Talent Management Programs

Chapter II:Improve Consumability of


Chapter III:Leverage Soft and Hard

Accountability to Improve Outcomes

• What are the most effective strategies to improvethe relevance of talent management activities?

• How can HR create a high-quality talent discussionthat is relevant to business priorities and engageleaders in talent activities?

• How can HR help business leaders make bettertalent decisions?

• How can HR integrate talent managementsolutions into business leaders’ workflow?

• What are the most effective accountability strategiesto engage business leaders in talent managementactivities?

• How can organizations leverage peer accountabilityto improve the urgency of talent managementaccountability?

• How can organizations ensure that the talentmanagement behaviors of business leaders supportthe talent outcomes of the wider organization?

Profiled Case Example Profiled Case Examples Profiled Case Examples

Creating Talent ChampionsBest practices for engaging business leaders in talent management



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CLC1ABSPK8 1

Council Essay

Improving Business Leaders’ Commitmentto and Effectiveness at Talent Management



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CLC1ABSPK8 Creating Talent Champions (Volume II) 2

Substantial Talent Investments Fail to Deliver

Business Leaders Making Significant Talent Investments

Leaders across the organization report that they are spending significant timeon talent management; business leaders with P&L responsibility spend morethan 21 hours per week, while CEOs report spending more than one-third oftheir time.

Business Leaders Still Reporting Talent Shortfalls

Yet, business leaders still report critical ta lent shortfalls across a number ofmeasures. Nearly two-thirds of business leaders report employee shortages,and more than half of business leaders feel their existing staff lack necessaryskills. Finally, and most troubling, four in five leaders feel they do not havethe people they need for their business to be successful.



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CLC1ABSPK8 Council Essay: Improving Business Leaders’ Commitment to and Effectiveness at Talent Management 3

Constituency Time

Business

Leaders

The average P&L owner reports that he or shespends more than 21 hours per week on talentissues.

The CEOCEOs report that they spend more than one-thirdof their time on talent management.

The Board

In 2008, 53% of boards expect to increase theirtime allocated to talent management compared to

7% that plan to decrease. This is the area of largestincrease across all board-related activities.

Disappointing Returns Despite Increasing Talent InvestmentsBusiness leaders are investing

significant time in talent management…

…yet the majority of them believe

they lack the people to be successful

21%

47%

32%

61%

39%

Have You Recently Experienced a Shortage of Employees?

Business Leaders

My Organization Has the People It Needs to Be Successful

Business Leaders

Have You RecentlySuffered from a Lack of Skills

Among the Employees You Have?

Business Leaders

No

54%46%

No

YesYes

AgreeDisagree

Neutral

Talent Management Time Investment


Please note that the CEB program names referenced in this document have changed since the time of publication .


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Chief Human Resources Officers

Focused on Improving Line Effectiveness

Increased Focus on Talent Management Execution

The Council’s 2008 Agenda Survey reflected the membership’s continuingconcern with talent management implementation. Similar to last year, whenthe Council studied the effectiveness of the HR business partner in drivingtalent management, this year the membership directed us to the otherside of the partnership: improving the l ine leader’s effectiveness at talentmanagement. More than 90% of chief human resources officers rankedincreasing the talent management effectiveness of the line as a critical priority,reflecting HR’s realization that t he line is absolutely necessary to real izing

returns on investments in talent management programs.



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Clear Mandate to Improve ExecutionHeads of HR focus on helping the line improve talent management effectiveness

Getting Paid for Previous Investments

“I’ve built new programs, created new tools, and providednew training. Now it’s our job in HR to get business leadersto get the job done.”

Global Head of HR Pharmaceuticals Company

Fewer HR ResourcesNecessitates Line Ownership

“With increasing amounts of our work being outsourced, wesimply don’t have the resources to support the line anymoreand have to rely on improved manager effectiveness at talentmanagement.”

SVP of HR Financial Services

Organization

0%

50%

100%

92%

81%79%

71%

CLC 2008 Agenda Poll Analysis

Top Four Priorities

Percentageof CHROs*IndicatingImportantor Very

Important

Source: C LC Talent Management Effectivenes s Survey; CLC 2008 Agenda Survey; Corporate Leadership Council research.Note: The Council examined more than 40 distinct priorities. Data for the top four are presented.

* Chief Human Resources Officer.

Increasing the Talent

ManagementEffectivenessof the Line

Selecting andImplementingHR Metrics

Improving Workforce

Planning

Managing theCentral HR Team



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Three Root Causes of Limited HR Program Impact

HR Program Design Accounts for One-Third of Variation

The Council identified three root causes for the limited impact of talentprograms. Over the past years, HR, as well as the Corporate LeadershipCouncil, has focused on the first root cause, poor HR program design. Thishas been for good reason as poor HR program design has accounted for nearlyone-third of the variation in talent management program ef fectiveness. Yet, asHR functions have increased the quality of their talent management programs,there remains limited leverage to be gained by continuing to focus on programdesign.

Poor HR Progra m Implementation Responsible for Remaining Variation

HR must focus on the remaining two-thirds of variation in talent managementprogram effectiveness, which can be explained by poor HR programimplementation. There are two components of poor implementation: poorHR delivery and poor HR support of line implementation. Last year, theCouncil addressed the former with its work on the HR business partner,Building Next-Generation HR–Line Partnerships. This year’s work is focused onthe latter component: the relatively uncharted territory of improving the line’seffectiveness at talent management, which accounts for 34% of the variation intalent management program ef fectiveness.



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Effective HR Programs Overcome Three Root-Cause ProblemsThe HR–Line interaction accounts for two-thirds of the variation in talent management program effectiveness

Talent Management Impact Root-Cause Analysis

Source: CLC Talent Management Effecti veness Survey; Corporate Leadership

Council, Building Next-Generation HR–Line Partnerships, Washingt on, D.C.:Corporate Executive Board; Corporate Leadership Council research.

Limited HR Program

Business Impact

Poor HR ProgramImplementation

Root Cause #3:Poor HR Support of

Line Implementation

Root Cause #2:Poor HR Delivery

Root Cause #1:Poor HR Program Design

Portion ofVariationin Talent

ManagementProgram

EffectivenessExplained

Improving TalentManagement

Outcomes

Building Next-Generation HR–

Line Partnerships

Creating TalentChampions

Sample CLC Resource Sample CLC Resource Sample CLC Resource

Two-thirds of talentmanagement programeffectiveness isa function of theHR–Line interaction.

HR Program Design HR Staff Effectiveness Line Effectiveness

at Talent Management

Focusof This

Research

100%

50%

0%

32%

34%

34%



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HR Should Focus on Overcoming the Barriers

to Business Leader Talent Management Effectiveness

Business Leaders Are the Most Critical to Talent Outcomes

HR should focus on improving the talent management performance ofbusiness leaders—managers with significant responsibility for profit, loss,and budget (or equivalent)—rather than frontline managers. Council researchshows that variation in business leader effectiveness at talent managementaccounts for 66% of overall talent outcomes, and these leaders largely ownthe performance of the business and exert greater influence on employeesdue to wider spans of control.



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BusinessLeaders

FrontlineManagers

Employees

1. Business Leaders’ Talent Management Activities Drive Talent Outcomes

2. Business Leaders Own Business OutcomesBusiness leaders have more variable compensation at risk (82%) relative to frontlinemanagers (61%) based on business performance.

3. Business Leaders Have Larger Spans of ControlOn average, business leaders have a managerial span of 112 (7 direct and 105 indirect),while frontline managers have a span of 4 (only direct reports).

Business Leaders Are the Key Leverage Pointfor Improving Talent Management Outcomes

HR must focus on how to improve the talent management performance of business leaders

Importance of Business Leaders to Talent Outcomes

Importance of Business Leaders

Source: CLC Talent Management Effective ness Survey; Corporate Leadership Council research.

Bus iness Leader s Frontli ne Manager s

66%

34%

Portion ofVariationin Talent

OutcomesExplained

Business Leader Managers with significant

profit, loss, budgetresponsibility, or equivalent

Frontline Manager Managers without significantprofit, loss, budgetresponsibility, or equivalent

Relative Importance of Managerial Levels

Note: Amount of variation in program effectiveness is determined by conducting a multivariate analysis of variation (MANOVA).



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Four Talent Mind-Sets for Business Leaders

Business Leader Commitment and Effectiveness Determines Mind-Set

The Council’s quantitative work on this topic, Creating Talent Champions(Volume I), identifies four talent mind-sets for business leaders, based ontheir level of effectiveness at and commitment to ta lent management. Thosewho are both effective and committed represent 19% of the business leaderpopulation (Talent Champions). Those who believe in the importance oftalent management, but are ineffective at it, are called Strivers (42% of thepopulation). Those who are effective at, but lack real commitment to, talentmanagement are known as the Half-Hearted (8% of the population). Finally,those who are neither committed to nor effective at ta lent management arecalled Talent Rejecters and make up 31% of the population.

Do Not Avoid Developing Rejecters

Strivers are clearly the group most ready to develop into Talent Championsas they only require an improvement in ta lent management effectiveness. Thatsaid, HR should avoid the temptation to ignore Talent Rejecters. Representing31% of the population, it is unreal istic to replace this population. Instead, HRmust focus on improving Talent Rejecters’ effectiveness at and commitment totalent management, as the possible talent outcome rewards are significant, asshown on page 13.



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1 Talent management commitment includes both business leaders’ individual enjoyment and commitment to talentmanagement and business leaders’ perceptions of its importance to the organization. High talent management commitmentis defined as an average score of six or greater across all questions concerning commitment to talent management.

2

Talent management effectiveness consists of business leaders’ performance at both organization-wide talent managementactivities and individual talent management activities. High talent management effectiveness is defined as an average scoreof six or greater across all questions concerning effectiveness at talent management.

Few Business Leaders Are Fully Committedto and Effective at Talent Management

The largest group is committed to the importance of talent management but struggles with effectiveness

Distribution of Business Leaders

Talent Mind-Sets

Low High

High

Low

TalentManagement

Commitment1

Talent Management Effectiveness2

Strivers

Strivers believe in the importance of talentmanagement but lack effectiveness at critical talentmanagement activities.

Talent Rejecters

Talent Rejecters are not convinced that talentmanagement solves business challenges nor dothey effectively execute against talent management

activities.

Talent Champions

Talent Champions firmly believe that human capitalis critical to the organization’s success and effectivelyexecute against the most important activities.

The Half-Hearted

The Half-Hearted are not convinced that talentmanagement solves business challenges, but they areeffective at critical talent management activities.

42% 19%

31% 8%

Source: CLC Talent Management Effective ness Survey;Corporate Leadership Council research.

T al e n t M an ag e m e n t

Sample TalentOutcomes

• Employee effort levels are

20% lower than average.• Thirty-two percent of

employees are at riskof turnover.

• Business unit profit is6% lower than average.

• Business unit revenueis 7% less than average.

Sample TalentOutcomes

• Employee effort levelsare 25% greater thanaverage.

• Six percent of employeesare at risk of turnover.

• Business unit profit is 6%greater than average.

• Business unit revenue is7% greater than average.



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Commitment and Effectiveness Together Create Larger Returns

Reforming Talent Rejecters Provides Opportunity for Cumulative Benefit

Business leaders deliver much better talent outcomes if they are committedand effective. This chart underlines why it is so important to improve theTalent Rejecters. If Talent Rejecters become more committed to talentmanagement, talent outcomes improve by 2%. If Talent Rejecters’ effectivenessat talent management increases, then ta lent outcomes improve by 12%.However, if Talent Rejecters improve both effectiveness at and commitmentto talent management, they can realize an up to 29% improvement in talentoutcomes, the combination of the total impact in isolation (14%) and a 15%bonus from the cumulative effect.

Talent Outcomes Defined

The Council aggregated all of the below measures into an overall measureof talent outcomes.

MeasureCategories

Specific Criteria

BenchStrength

• A deep bench across all positions

• A deep bench for the most critical positions

• High-performing talent placed in the right part of the organization

OrganizationCulture

• Right mix of skills within project teams

• Right person with right job

• Organizational values present in direct reports

LegalCompliance

• Minimal safety problems

• Minimal legal problems

InternalEquity

• Appropriate pay differentiation

• Diverse employee base

Engagement• Employee commitment to the organization, team, manager,

day-to-day work

DiscretionaryEffort

• Employee willingness to put forth additional effort

Intent to Stay • Employee intent to stay with the organization

Definition of Talent Outcomes



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Business Leaders Must Be Committed and Effective to Maximize the Impact on Talent Outcomes

The combination of the two generates disproportionate returns

Impact of Business Leader Commitment and Effectiveness on Talent Management Outcomes

Committed Effective Committed and Effective0%

15%

30%

MaximumImpact on Talent

Outcomes*

The combination of commitmentand effectiveness more thandoubles the impact on talentoutcomes of commitment and

effectiveness alone.


The Importance of Commitment and Effectiveness

2%2%

12%

12%

29%

15%

Maximum Impact ofCommitment to TalentManagement in Isolation

Maximum Impact ofEffectiveness at Talent

Management in Isolation

Maximum Impact ofCommitment to andEffectiveness at Talent

Management


Effectiveness

o

m

m

i

t

m

C o m m i t m e n t

Total Impactof Commitment

and Effectivenessin Isolation

al e n t an ag e m e n t

Note: The maximum total impact on t alent outcomes is calculated by comparing two statistical estimates: the predicted impactwhen a talent program attribute scores high on a driver and the predicted impact when a talent program attribute scoreslow on a driver. The effects of all drivers are modeled using a variet y of multivariate regressions with controls.

* See “Talent Outcomes Defined” on page 12 for a definition of talent outcomes.



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Focus on Improving Effectiveness

and Commitment of All Business Leaders

Improving Only Effectiveness or Commitment Failsto Achieve Maximum Benefit

It is critical to improve the effectiveness and commitment of all businessleaders, as failing to do so leaves substantial gains in talent outcomes on thetable:

• Strivers-Only Approach—Focusing on only improving the talentmanagement effectiveness of “Strivers” achieves 38% of the totalpotential benefit.

• Rejecters-Only Approach—Focusing on only improving ta lentmanagement effectiveness and commitment of “Rejecters” achieves 42%of the potential benefit.

• Half-Hearted-Only Approach—Focusing on only improving ta lentmanagement commitment of the “Half-Hearted” achieves 20%of the potential benefit.



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Choosing a Strategy for FocusHR must work to improve all business leaders


The Importance of Commitment and Effectiveness (Continued)

Effectiveness

o

m

m

i

m

C o m m i t m e n t

T al e n t

Effectiveness

o

m

m

i

m

C o m m i t m e n t

T al e n t

Effectiveness

o

m

m

i

m

C o m m i t m e n t

T al e n t

Strategy I:Improve Effectiveness of the Strivers

Strategy 2:Improve Effectiveness and Commitment of Rejecters

Strategy 3:Improve Commitment of the Half-Hearted

38%42%

20%

Percentage of Total Talent

Outcome* Achieved


Outcome* Achieved


Outcome* Achieved

Know Where to Focus

1. What is your largest group?

2. Is commitment or effectiveness a greater problem?

3. Which is easier to improve at your organization?

Half-Hearted Are Contagious

Council research shows that Half-Hearted businessleaders reduce the effectiveness of other managers byup to 23%.




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Few Differences in Drivers of Commitment and Effectiveness

Commitment and Effectiveness Drivers the Same

Council research shows that commitment and effectiveness are driven bysimilar factors, though those factors affect commitment and effectiveness indifferent ways. Therefore, a different strategy must be employed for improvingcommitment and effectiveness.

• Commitment—To improve business leaders’ belief in the importanceof talent management, HR must focus on the following strategies,in rank order:

– Soft Accountability (up to 19% improvement)—The use ofintangible and indirect incentives within the culture and environment(e.g., providing visibility into business leaders’ performance on talent

metrics) to influence behavior– Consumability (up to 11% improvement)—The ability of businessleaders to understand, access, and use talent solutions when needed

– Relevance (up to 5% improvement)—The development of talentprograms that are relevant to business leaders’ business objectives,processes, and talent management challenges

• Effectiveness—To ensure business leaders are able to deliver effectivelyon talent outcomes, HR must improve the following drivers:

– Hard Accountability (up to 11% improvement)—The use of tangibleand direct incentives, such as performance reviews and MBOs(e.g., promotion or retention rate)

– Relevance (up to 10% improvement)– Consumability (up to 5% improvement)



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Similar Drivers of Commitment and Effectiveness

Drivers of Commitment and Effectiveness

Source: CLC Talent Management Effective ness Survey;

Corporate Leadership Council research.

Maximum Impact on Commitment Maximum Impact on Effectiveness

MaximumImpact on

Commitment

MaximumImpact on

Effectiveness

20% 20%

0%

10%

0%

10%

Driver Driver

Top Drivers of Commitment

1. Soft Accountability: Improves Commitment by 19%

2. Consumability: Improves Commitment by 11%

3. Relevance: Improves Commitment by 5%

Top Drivers of Effectiveness

1. Hard Accountabil ity: Improves Effectiveness by 11%

2. Relevance: Improves Effectiveness by 10%

3. Consumability: Improves Effectiveness by 5%

Organizations should moderately alter their approachbased on a need to improve commitment and effectiveness.

1 151 51201 201101 101151 151



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Focus Efforts on Addressing Either Commitment or Effectiveness

Organizations should vary their strategies based on whether commitmentor effectiveness most needs to be addressed. The Council recommends thefollowing strategies for organizations with large populations of the followinggroups:

• Talent Rejecters and Half-Hearted—Focus on increasing softaccountability (up to 19% improvement in commitment), consumability(up to 11% improvement in commitment), and relevance of talentactivities (up to a 5% improvement in commitment).

• Strivers and Talent Rejecters—Focus on improving the hardaccountability for talent outcomes (up to 11% improvement ineffectiveness), relevance of talent activities (up to 10% improvementin effectiveness), and consumability (up to a 5% improvement ineffectiveness).

Alter Strategies Based on Whether

Commitment or Effectiveness Is the Key Challenge


Pl t th t th CEB f d i thi d t h h d i th ti f bli ti


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Different Situations Require Slightly Different StrategiesHR should alter strategy based on solving a commitment or an effectiveness challenge

High

Low

Low HighTalent Management Effectiveness2

Strivers

Talent Rejecters

Talent Champions

The Half-Hearted

42% 19%

31% 8%

T al e n t M an ag e m e n t


Source: CLC Talent Management Effective ness Survey; Corporate Leadership Council research .

Drivers of Commitment and Effectiveness (Continued)

Top Driversof Effectiveness

1. Hard Accountability (11%)

2. Relevance (10%)

3. Consumabil ity (5%)

Top Driversof Commitment

1. Soft Accountability (19%)

2. Consumabil ity (11%)

3. Relevance (5%)

TalentManagement

Commitment1

1 Talent management commitment includes both business leaders’ individual enjoyment and commitment to talentmanagement and business leaders’ perceptions of its importance to the organization. High talent management commitmentis defined as an average score of six or greater across all questions concerning commitment to talent management.

2 Talent management effectiveness consists of business leaders’ performance at both organization-wide talent management

activities and individual talent management activities. High talent management effectiveness is defined as an average scoreof six or greater across all questions concerning effectiveness at talent management.



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Please note that the CEB program names referenced in this document have changed since the time of publication


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CLC1ABSPK8 Build Relevance of Talent Management Programs 21


Chapter I:Build Relevance of


Chapter II:Improve Consumability of


Chapter III:Leverage Soft and Hard

Accountability to Improve Outcomes

• What are the most effective strategies to improvethe relevance of talent management activities?

• How can HR create a high-quality talent discussionthat is relevant to business priorities and engageleaders in talent activities?

• How can HR help business leaders make bettertalent decisions?

• How can HR integrate talent managementsolutions into business leaders’ workflow?

• What are the most effective accountability strategiesto engage business leaders in talent managementactivities?

• How can organizations leverage peer accountabilityto improve the urgency of talent managementaccountability?

• How can organizations ensure that the talentmanagement behaviors of business leaders supportthe talent outcomes of the wider organization?

Profiled Case Example Profiled Case Examples Profiled Case Examples

Creating Talent ChampionsBest practices for engaging business leaders in talent management


CLC1ABSPK8 C T C (V II)


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Focus on Relevance to Drive Effectiveness

Integrating Talent Programs with Business Processes Is Critical

Business leaders need talent management activities that are integrated andaligned with their workflow as well as with the business. Leaders can realizeimprovements in their talent outcomes when programs do the following:

1. Improve leaders’ ability to manage employees (up to 12% improvement).

2. Integrate with business leaders’ process (up to 10% improvement).

3. Align with managers’ objectives (up to 10% improvement).

Furthermore, business leaders with more relevant talent programs are moreeffective at talent management by 10% and more committed to it by 5%.

Reducing Time Spent Fails to Drive Outcomes

Decreasing the time business leaders spend on talent management alone failsto make an impact. Contrary to conventional wisdom, it is not enough fortalent programs to simply be easier and less time-consuming, but they must,most importantly, be integrated with business processes and alignedto business goals.


Please note that the CEB program names referenced in this document have changed since the time of publication


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Improve Talent Management Effectiveness Through RelevanceFocus on talent program integration with business processes as well as alignment of talent objectives to drive impact

Impact of Relevance Drivers on Talent Outcomes

Relevance Drivers

0%

8%

16%

0%

8%

16%

12%

10% 10%

6% 6%

1% 1%

Maximum

Impact on TalentOutcomes*

Note: The maximum total impact on t alent outcomes is calculated by comparing two statistical estimates: the predicted impactwhen a talent program attribute scores high on a driver and the predicted impact when a talent program attribute scoreslow on a driver. The effects of all drivers are modeled using a variet y of multivariate regressions with controls.

T a l e n

t P r o

g r a m s

I m p r o v e

M y

P e r f o

r m a n

c e a t

M a n a g i

n g M y E

m p l o y e e s

T a l e n

t M a n a g e

m e n t

I s I n t e g r a

t e d

w i t h

M y B u

s i n e s s

P r o c e s s

M y T a l e n

t P r i o

r i t i e s

A r e

A l i g n e d w

i t h

M y M a n a g e

r ’ s O b

j e c t i v e s

M y T a l e n

t P r i o

r i t i e s

A r e

C o o r d i n a t e d w

i t h

M y T e a m

’ s P r i o

r i t i e s

T a l e n

t M a n a g e

m e n t

S o l u t

i o n s a n d

P r o g r a m s

A r e I n t e

g r a t e d

w i t h

M y B

u s i n e s s

T a l e n

t P r o

g r a m s

I m p r o v e

M y

U n d e r s t

a n d i n

g o f M

y E m p

l o y e e s

T a l e n

t P r o

g r a m s

D e c r e a

s e T i m

e S p e n t

o n

T a l e n

t M a n a g e

m e n t

Implications for HR

• Align talent management solutions with business

processes and priorities.• Ensure consistency across all business unittalent objectives.

• Provide business leaders with integrated talentmanagement solutions.

Relevance Impacts Effectiveness and Commitment

Impact on Effectiveness 10% I m p a c t o n C o m

m i t m e n t 5 %

Talent Champions

< 1% < 1%




CLC1ABSPK8 C T C (V II) 24


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Overcome Time Challenges by Increasing Relevance

Time Less of a Barrier as Relevance Increases

HR typically addresses business leaders’ objections that they do not haveenough time for talent management by solely focusing on making programssimpler to use. Council research shows, though, that as business leadersincreasingly see the relevance of talent management activities to their businessgoals, they are less likely to see time as the primary barrier to doing talentmanagement. This is further proven by the fact that Talent Champions are93% more likely to cite lack of budget than lack of time as the most commonbarrier to effective talent management. Therefore, HR should focus onensuring that talent programs are first and foremost relevant to businessleaders’ needs and workflow before making them simpler to use. This wi llencourage business leaders to invest the time required to produce great

talent outcomes.




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● ●

●

●

●

■■

■■

■

▲

▲

▲

▲

▲

◆◆

◆

◆ ◆

0%

30%

60%

0%

30%

60%

Building Relevance

Talent Management Barriers Shift as Relevance Increases As relevance increases, fewer business leaders cite lack of time

as the critical barrier to involvement in talent management programs

Most Common Talent Management Barriers

By Talent Management Relevance as Rated by Business Leaders

Implications for HR

Talent Champions are 93% more likely to cite lack of budget than lack of time as the most common barrier to effective talent management.

Time

Budget

HR Support

Senior Leadership Support

Not Relevant Very Relevant

…however, as relevanceincreases, business leadersare less likely to cite timeas a barrier…

Almost 60% of business leaders ci tetime as the biggest barrier to doingtalent management when it is notviewed as relevant…

…and more likelyto cite lack of budget.

Talent Management

Note: Relevance is based on business leaders’ response to the question,“How relevant is talent management to my business operations?”

PercentBusinessLeaders





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Relevance Critical to Talent Outcomes

Involve Business Leaders in HR Program Development and Delivery

Improving the relevance of ta lent management not only reduces businessleaders’ time objections, but it also has a 12% positive impact on talentoutcomes. The key to improving relevance is gett ing business leaders activelyinvolved in talent management. Increased business leader involvement in HRprogram development and delivery can result in an up to 25% increase in theirperception of the relevance of the talent program to their needs.




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0%

7%

14%

0%

7%

14%

12%

1%

MaximumImpact on Talent

Outcomes*

< 1%

Talent ManagementPrograms AreRelevant to My

Business

Talent ManagementPrograms Don’tTake That Much

Time to Do Low Involvement High Involvement

Involvement Builds Relevance

Build Relevance Through InvolvementIncreasing relevance is more important than decreasing time to drive talent outcomes

Unanswered Question

Given business leaders’ time constraints, in what stage of talentprograms should they be involved to most improve outcomes?

…and involving business leadersin HR programs improvesrelevance by up to 25%.

MaximumImpact onRelevance

Impact of Relevance on Talent Management Outcomes Impact of Business Leader Involvement on Relevance

Depth of Business Leader Involvement inHR Program Development and Delivery

Improving relevanceof talent managementimproves talent outcomes…

Note: Involvement is defined as participation in the diagnosis, identification of solutions, process development, and delivery of HRprograms. The maximum total impact on talent outcomes is calculated by comparing two statistical estimates: the predictedimpact when a talent program attribute scores high on a driver and the predicted impact when a talent program attribute

scores low on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.

30%

15%

0% •

•

•

•

•

•

•



p g g p



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Creating Talent Champions (Volume II) 28

Improve Talent Outcomes by Including BusinessLeaders in Talent Issue Diagnosis and Solution Identification

Drive Talent Outcomes by Involving Leaders at the Right Time

Given business leaders’ limited time, it is important to involve them inHR program development and delivery when it wi ll result in the greatestimprovement in talent outcomes. Council research finds that these mostcritical moments to involve leaders are challenge diagnosis (14% impact ontalent outcomes) and solution identification (27% impact on talent outcomes).Business leaders with great talent outcomes (Talent Champions) investtheir time in those two activities and leave the design of talent managementprograms, which has less impact on ta lent outcomes, to HR.




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0%

15%

30%

0%

15%

30%

Involve the Line in Talent IssueDiagnosis and Solution Identification

Talent Champions participate in challenge and solution identification, not process design

The Impact of Business Leader Participation in Talent Programs on Talent Outcomes

Optimizing Line Partnership

Note: The maximum total impact on t alent outcomes is calculated by comparing two statistical estimates: the predicted impactwhen a line involvement attribute scores high on a driver and the predicted impact when a line involvement attribute

scores low on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.

Talent ManagementExample:

Maximum Impactof Business Leader

Participation onTalent Outcomes*

Talent Champions participatein diagnosing challenges andidentifying the right solution…

…but are not involved inthe technical specifics ofthe design process.

14%

27%

< 1%

17%

Line Par ticipates

in DiagnosingTalent Challenges

Line Par ticipates

in Identifying theSolution

Line Par ticipates

in Designing theProcess

Line Participates in

Program Delivery

Talent Review/Planning Talent ManagementProgram Design

Program Delivery

HIPOProgram

Business LeaderHRBP





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Creating Talent Champions (Volume II) 30

Four Failure Points of Talent Reviews

Talent Reviews Not Seen as Relevant by Business Leaders

Many organizations involve leaders in talent reviews and planning sessions;however, most business leaders fail to see the relevance of these sessions totheir business needs and objectives. There are four fai lure points at mostorganizations:

• Disjointed Talent Activities—Multiple talent assessments across dif ferenttalent management areas (e.g., succession planning, workforce planning,high-potential identification) produce numerous lists of unprioritizedtalent-related actions for leaders.

• Poor Quality of Talent Review Session—Poor definition of rolesand expectations in different talent processes reduce the quality oftalent discussions.

• Talent Discussions Isolated from Business Challenges—Talentassessments focus solely on individual people without addressing talentneeds to meet business objectives.

• Inadequate Execution Support—HR and other line partners donot provide supporting resources when needed for business-driventalent needs.




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Talent DiscussionsIsolated from

Business Challenges

Talent planning and reviews focus onlyon people challenges and prioritiesand occur in isolation from businessobjectives and challenges.

DisjointedTalent Activities

Disconnected talent reviews fail toproduce an integrated talent plan.

Poor Quality ofTalent Review Session

Lack of defined roles and expectations cause leaders to view talentmanagement as a check-the-boxactivity.

InadequateExecution Support

HR and other line constituentsdo not support leaders’ talentneeds across the year.

Business Leaders Fail to See the Relevanceof Talent Reviews and Planning Sessions

While most organizations involve their business leaders in talent reviews and planning sessions,business leaders often fail to see the relevance of these sessions due to four shortcomings

Failure Points in Conducting Business-Relevant Talent Sessions

Key HR Challenge: Leaders Fail to See theBusiness Relevance of Talent Sessions

Talent Session

EngagementPlan To-Do’s

HIPO Plan To-Do’s

SuccessionPlan To-Do’s

Talent Review BusinessStrategy

Plan

4321

Talent Plan

Source: CLC Talent Management Effecti veness Survey; Corporate Leadership Council research.



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( )




50/166


Integrated Talent Portfolio Review

Standard Chartered PLC An integrated, structured ta lent portfolio review that engages leaders in identifying and addressing critical talent management risks to their business objectives


Industry: Banking

Assets: US$329.2 Billion

Employees: 73,000

Headquarters: London, UK

Situation

Organizations fail to engage leaders in business-relevant talent review sessions due to a lack ofconnection across multiple talent activities, poorquality talent planning discussions, a focus onindividuals in isolation of business needs, andinadequate execution support.

Action

Standard Chartered designs a simple talentportfolio review process, led by business leaders,that provides them with a prioritized, integratedtalent plan.

Key Components

• Component #1: Integrated Talent Assessment

• Component #2: Leader-Led Strategic TalentPlanning Meeting

• Component #3: Talent Review Anchored inBusiness Challenges

• Component #4: Integrated Business Unit andCorporate HR Plan

Results

CEO, business leaders, and HR report high valueand impact from Strategic People Agenda (SPA)process.

Source: Standard Chartered PLC; Corporate Leadership Council research.



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Addressing the Four Failures

Business-Anchored, Integrated Sessions

Standard Chartered addresses the four barriers to business-relevant talentreviews by creating a separate 90-minute review between business leadersand the CEO for an integrated discussion of talent and business objectives.The following four components are a part of the SPA process:

• Component #1: Integrated Talent Assessment—Prioritization of talentneeds across all ta lent management areas

• Component #2: Leader-Led Strategic Talent Planning Meeting—Cleardefinition of expectations of leaders’ ownership of business unit–leveltalent plan

• Component #3: Talent Review Anchored in Business Challenges—

Discussion focused first on business challenges and talent capabilitiesnecessary to achieve business results

• Component #4: Integrated Business Unit and Corporate HR Plan—Creation of clear action steps by all par ties and infusion of SPA plansinto corporate HR agenda




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Practice in Context

Overcoming the Barriers to Business-Relevant Talent ReviewsStandard Chartered overcomes key barriers to business-relevant talent

planning by engaging leaders in a business-anchored, integrated talent review process


Component #1: Integrated Talent Assessment

• Prioritize talent needs for business leaders through an integratedreview across all talent management areas.

• Simple templates for review preparation enables line ownership.

Component #2: Leader-Led Strategic Talent Planning Meeting

• Clearly define roles and expectations for business leaders.

• Structured review session enables line ownership of businessunit–level talent plan.

HRBP CEO

Head of HR

General Manager

SPA Meeting

Component #3: Talent Review Anchored in Business Challenges

• Initiate talent discussion with explicit focus on business challenges.

• Activate leaders’ business skills by applying business frameworks

to talent management.• Focus on needed capabilities to drive business objectives,

not on individual people.

Pleasereferto materialpresentedin 2007inSWOT analysisandprovideupdateonthose. Thiswillhelp toset thecontext fortherest of theSPAdiscussionandkeyissues maybeexploredin moredetaillater on

Your People Priorities Across NextThree Years

SWOT 2 00 8 20 11 E xp ec ted Pe op leAction

Update

Strengths Expandedintotwonewcountriesandhiredover200newemployees

Campusrecruitingprogramslaunchingin6moreregionsinnext twoyears

Reviewrelevanceofprogramstodifferenttalent poolsandidentifynewopportunities

Reviewscurrentlyunderway

Weaknesses ITstaff shortageinBusinessUnit A

Lossof organizationalknowledgeasaresult ofretirementsof keystaff

ReexamineEVPforITgroup

Createupskillingandmentoringopportunitiesforknowledgetransition

MentorprogramlaunchinginMay

Opportunities Opportunityidentifiedtomoveintonewgeographicalregion

Additionalbusinessopportunitiesinnewmarketsandnewtalentpools

Createtaskforcetolearnabout attractingtalent innewmarkets

Identifyingindividualsfortaskforce, launchinginJuly

Threats/ Risks Pendingretirementsof threekeyexecutives

Retirementsacrossexecutivelevel

Createplanformoreflexible/part-timeworkoptions

Jun-Gettingcountry-wideapprovalsfor flexibleworkplans

SWOT Analysis

Talent SWOT Analysis

Component #4: Integrated Business Unit and Corporate HR Plan

• Follow-up actions embedded into direct reports’ objectives.

• SPA plans inform corporate HR agenda.

Corporate HR Talent Initiatives

Q1: Pilot to help managers develop junior talent

Q2: Retention management project tounderstand root causes of attrition

Q3: Campus recruiting program inUnited Kingdom

Corporate HR Plan

Key Components ofStandard Chartered’s SPA Process

Failure Points in ConductingBusiness-Relevant Talent Reviews

Disjointed TalentActivities and Plans

Poor Quality ofTalent Review Session

Talent Discussions

Isolated fromBusiness Challenges

InadequateExecution Support

4

3

2

1 SPA Preparation PackEmployee EngagementSummary

Linesrepresent thepercent ageof teamswi thaG randMeani nt herangemarkedonthehori zontalax i s .

GrandMean 4.47Execdatabase75th percentile

Gr andMean 3.88Execdatabase25th percenti le

X%(Xteams)at/abovethe75th pctl

x%(X teams)below the25th pctl

GrandMean 4.16Execdatabase50t h percenti le

X%(Xteams)

X%(Xteams)

IndicateYOYtrendi npositi oningof teamsinquartiles Discusschallengesforthebusiness / functionandspeci ficallyprovidecommentary

ontheteamsbetween25 th percentileand75 Th percentileif theYOYtrendhasntbeenpositive.

IncludescoreonQ12question I knowwhat isexpectedof me

Maximum1slideforthissection

Y our 10 HIPO Bets

Discuss10indivi dualsyouhavedecided tofast trackfromH3/ H2popul ation; ifwomenarenot inthislist, plsdi scusstop3highpo tentialwomeninyour

business/ functionandyourplans forthem

Name DevelopmentPlan Nextroleand timing Anyothercomments

Pleasesubmit theprogressupdateagainst theSuccessionPlanningactionplanthat wassubmittedtotheGMCinDec

KeySuccessionRisks

Maximumof2slidesforthissection

MBAs

(X)

H4s

G6&below(X)

H3sB 4 & G 5

(X)

H2s (X)

International

Graduates(X)

2006and2007intake

•Prov idegeneralupdate

•What arethec ri ticalbus iness talent pools / globalpools thatrequirefocusedattentioninorderf oryoutoachieveyour

bus iness / func tionalgoals

•Howmany IGs r etainedsince2000•Pleasecomment onretentionandpr ogress ionof IGs in2000to2002pool(PamJacksoncanprov idethisdataas theyhaver ecentlycompletedsomeanalys is )

Keychallenges

Keymeasures

•Attr i tionin2007•Per centageofmale&female•Per centagepromotedin2007

•Attritionin2007•Percentageofmale&female•Perf or mancedis tributionin2007

•Attritionin2007•Percentageof male&f emale• Percentagepromotedin2007• Numberof Arabs ,Kor eansandMainl andChinese

•Attritionin2007•Percentageof male&female

Your TalentPipeline

YOYincrease YOYin c r e as e Y O Y i n cr e a s e YOYincrease YOYincrease

Diversity&Inclusion

Discussyourgenderandnationalitychallengesandyourpositiveactions toaddress these.

Comment onthefollowingmeasures – %of womenat B1to3

– %of key nationalitygroups inB1to3

Koreans MainlandChinese Arabs

TeamCapabilityReview

Progress todate

Planf or 2008 Asyouthinkabout yourbusinessgoals, what leadershipcapabilitiesdoyouneedtodevel opinyour

– Topleaders –B1&B2

– Seniorleaders –B3& B4

– Emergingleaders –B5andbelow

What leadershipcapabilitieswillneedtobedevelopedat B4andaboveby2011,whichmayormaynotbecoveredbytheexecutivedevelopment programmesandthereforemayneedsomespecific

interventions orprogrammes. (pls refertotheAppendix inthelast slideforsuggestions onfutureleadershipcapabilities)

Howdoyouseetherevisedexecutiveandmanagement development programmesbeingtargetedandutilizedwithinyourbusinessorfunction?

Areyoulookingtosponsorany specific development activities asanattachor fieldactivity foryourleaders

LeadershipCapabilityBuilding Plans

Leadershi pEssent i al s

Leadi ng ForPer formance

(FromQ 22008)

R ethinki ng Leader shi p

(Fr omQ 22008)

Leadi ng A crossB oundaries

(G MEL)

Leadi ng ThroughC rucial

C onversat ions

TalentPlanet

Gr e a t M an a g er P r o gr amm e

P r of e s si on al D ev el o pm en t

I n C on t ex t

D ev el o pm en t

p

L e a d On

Gl o b al E n gl i sh



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Business Leaders Own and Drive Their Talent Plans

Talent Planning Integrated with the Business and Strategy Planning Cycle

Standard Chartered’s SPA process is a key input into strategic and businessplanning and provides business leaders with an integrated and strategic view oftheir talent needs to meet business objectives. There are four key features thatdifferentiate Standard Chartered’s SPA process from most talent reviews:

1. Business Leader Owned—The simple and standardized assessmenttemplates, in conjunction with a high degree of CEO involvement, drivesbusiness leaders to own and lead the talent assessment.

2. Business Outlook First—The talent assessment always begins with areview of the business outlook to ensure the session is relevant tobusiness priorities.

3. Holistic Talent Assessment—The assessment integrates all strategic talentareas to provide a holistic assessment of business-driven talent needs.

4. Prioritized Action Plan—The assessment produces one action plan forleaders with prioritized talent needs.

Small Number of Attendees Critical

Only four people participate in the SPA process: the general manager, theCEO, the head of HR, and the GM’s HR business partner. Standard Charteredpurposefully keeps the session small so that it maintains a discussion format,as opposed to turning into a presentation by the GM.




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Component #1: Integrated Talent Assessment

SPA Process

SPA Review Session

Background: Annual, structuredtalent assessment anchored inbusiness context led by businessleaders

Objective: To deliver a strategic,

integrated view of talentpriorities—across talent areas—required to achieve businessobjectives

Providing Leaders an Integrated Understanding of Talent ChallengesStandard Chartered’s SPA process is a key input to the business and

strategy planning cycle and engages leaders in prioritizing talent issues for their business

Standard Chartered’s Annual Strategic, Budgetary, and Leadership Timeline*


CEOHead of HR

GeneralManager

Interim PerformanceReviews

SuccessionPlanning

EngagementSurvey

PerformanceReviews

ObjectiveSetting

StrategyBoard Meeting

June July August September October November December January February March April May

Budget Setting Strategy Planning

HRBP

Integrated AssessmentAcross All Talent Areas

Assessment across talent areasprovides business leaderswith a strategic and integratedunderstanding of talent challenges.

List of Key Slides Required for Preparationby General Manager for SPA Review

* The exact timing of Standard Chartered’s business and talent planning events may differ.



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Structured and Business-Driven Talent Conversation

Ensure Relevant, High-Quality Conversations

During Standard Chartered’s 90-minute SPA meetings, business leaders andtheir HR partners review their business unit ta lent assessments with the CEOand head of HR and discuss talent-related risks, opportunities, implications,and follow-up actions for achievement of business goals. There are five critica linputs that ensure a high-quality conversation:

1. Limited Participants—As previously mentioned, the only participants inthe room for the conversation include the general manager, the CEO, thehead of HR, and the HR business partner, enabling a more focused, in-depth, and rigorous discussion.

2. Business-Anchored Discussion, Not Presentation—The talent review isalways initiated by a discussion of the business outlook and objectives. Inaddition, all participants under

Documents

Talent Champions