Talent Management

Andre O’Callaghan

November 2008

"The thing that wakes me up in the

middle of the night is not the economy

or competitors; it is whether we have

the leadership capability”.

(David Whitwan, former CEO of Whirlpool Corporation)

Introduction

• In the 21st century: Talent is the new wealth

• We are poachers of talent vs developers of talent

• Most companies play “talent management catch-up” and not managing talent (GIBS)

Some Perspectives

• Talent management is a 2-way relationship between the company and the employee

• If not: “bodies” filling jobs

Some Perspectives

The requirements of the organisation

The offering by the potential employee

The mutual benefit of both parties+ =

Focus of Talent Management

Bodies

Hearts& Minds

“Hard” TM

“Soft” TM

Nr’s & Quality

Contract

• “A” Players versus “B” Players

• Developing talent vs employability

• Raised threshold of entry

• Identification of dormant talent

• Skills practice in the workplace

Challenges

Trends

• One third of the US federal working

population will be retired by 2008

• Over 31000 vacancies in the Australian

healthcare system

• 60% of future jobs will require training that

only 20% of the current workforce possess

Trends

• 85% of current jobs require post-high school

education (compared to 61% in the 1990’s)

• Disengaged workforce

• 70% of companies surveyed by BPM in 2007

- not effective in measuring staff performance

and productivity

• Reduction of recruitment costs and risks

• Effective knowledge management and transfer

• Realisation of business strategy

• Delivery of cutting edge services and products

Benefits

• Creating a competitive advantage

• Improved client retention (no loyal customers

without loyal employees)

• Maintaining adequate capacity

Benefits

9-Box Matrix-

Potential

3 6 9

2 5 8

1 4 7

High

Medium

Low

Under- Good Strong

Performance

9-Box Matrix

Potential

3 6 9

2 5 8

1 4 7

High

Medium

Low

Underperforming Good Strong Performance

The sky is the limit: demonstrates the ability to operate at two or more levels

above their current position

Demonstrates the ability to move to a bigger/expanded role or to operate at one

level above their current position

Has not demonstrated the ability to move beyond their current role

Below expectationsPerformance : did not meet the roles minimum targets on a

consistent basisDirection for business: did not set a clear direction for the business or did not set a direction that enhanced the unit’s profitability

People leadership : did not lead or develop teams effectively

Execution : did not deliver on a consistent basis

Met expectationsPerformance : reached expected targets and moved towards the stretch targets of the roleDirection for business: set direction for the business unit which helped improve profitability

People leadership: develops and contributes to effective teams

Execution : possesses a results orientation and achieves impact

ExceptionalPerformance : consistently exceeds expected and stretch

targets of the roleDirection for business: set clear direction for the business unit, leading to profitable growth

People leadership: Fosters an effective team environment and

has strong followershipExecution : consistently delivers with high impact

Identifying Talent

“Talented individuals are mobile monopolies with global passports.”

(Karaoke Capitalism – Ridderstrale & Nordstrom)

Identifying Talent

A recent McKinsey survey in top SA companiesshowed:• Only 20% of SA executives know who the

top performers are• Only 3% of top SA executives develop

people effectively

Identifying Talent

Cognitive

Attitude

Action

Key Elements of Identifying & Assessing Talent

• Performance data

• Talent review meetings

• Track record reviews and evaluation

• Qualifications

• Psychometric assessments

• Development/assessment centres

• Multi-source feedback reports

Success Factors

• Planned approach

• Marker-driven

• Invest

• Timing of retention

• Good job design

Complexity

Capabilities

Overstretched•Self-clumsiness•Worry & self-conscious•Anxiety & stress•Position power•Low productivity•Task overload Underutilised

•Frustration & boredom•Stress•Anxiety•Empire building•Interference•Outside focus

Meaningful jobs

“In-

Flow

”: E

ffect

ive

deci

sion

mak

ing

Success Factors

• Compensation

• Social Ties

• Communication

• Reward talent management

Remuneration

• War on talent often becomes the “pay war”

• Value of golden handcuffs?

• The stars:

– Performance often decreases over time

– It affects team performance in a significant way

– Stars’ performance in one organisation is often not

repeated in another company

– Tend not to stay for long - the “young and the

restless” syndrome

Challenges

• Talent don’t want to be led, they want to be

inspired

• Talent knows their value and expect you to

know it as well

• Talent is very mobile

• Talent want protection and recognition

Challenges

• Talent needs freedom to experiment and to fail

• They need leaders to be on their level

intellectually and in all other spheres

• Leading talent is all about emotions

Challenges

“If you want them to turn right, tell them to turn left”

(Rob Goffee, 2007)

Challenges

Attitudes of talented people towards organisational

issues

• Scornful of hierarchies

• Fancy job titles and promotions – no value

• They want to stay “close” to the “real work”

• They do not want leadership

Challenges

Attitudes of talented people towards organisational

issues

• They want instant access to the decision-makers

• They have a low boredom threshold

• They want to feel special

• They won’t thank you

SMME’s

Challenges:

• Lack of Specialized Expertise

• Fewer Economies of Scale

• Hiring right

SMME’s

Advantages:

• Employee knowledge and relationships

• Flat structures and effective communication

• Sense of Belonging

Questions

&

Answers