From Business Strategy to Talent Strategy Summarized by: Melveen Stevenson

3-Step Process to Connect Talent Strategy to Business Strategy Begin with Business Priorities Segment, Inventory & Assess Talent Needs Prioritize, Sequence & Execute Key Initiatives

On Your Mark… Begin with Business Priorities Understand & map strategic priorities What are the capabilities required to achieve these priorities? What are the talent needs to answer to these capabilities?

Begin with Business Priorities

Understand & map strategic priorities

What are the capabilities required to achieve these priorities?

What are the talent needs to answer to these capabilities?

Example: Required Capabilities When is each Capability required What kinds of Roles or Jobs will be used to deploy these Capabilities

Required Capabilities

When is each Capability required

What kinds of Roles or Jobs will be used to deploy these Capabilities

Example of Value Tree EBITDA Expense Revenue Number of New Customers Regulatory Licensing & Compliance Competitive Pricing Strategy Supply Chain Effectiveness Breadth of Product Portfolio Ability to Manager Supplier Relationships Channel Strategy Effectiveness Brand Quality Local Market Expertise & Connections Regulatory Expertise Product Development & Cycle Time Ability to Manage Supplier Relationships Product Development Expertise Etc.

Get Set… Talent Segmentation First: Focus on roles Then: Consider Talent to fill roles / jobs Inventory Talent Portfolio Assess effectiveness of current situation (“deployment effectiveness”) Pinpoint gaps in current Talent Portfolio and Misalignments

Talent Segmentation

First: Focus on roles

Then: Consider Talent to fill roles / jobs

Inventory Talent Portfolio

Assess effectiveness of current situation (“deployment effectiveness”)

Pinpoint gaps in current Talent Portfolio and Misalignments

Core Areas of Talent Management 4 Distinct Categories: Strategic – drive long-term value creation, competitive advantage Core – unique to business, necessary for development, delivery & distribution of products & services Support – provide value, necessary for effective functioning, may be delivered through outsourcing Surplus – roles no longer aligned with strategic vision

4 Distinct Categories:

Strategic – drive long-term value creation, competitive advantage

Core – unique to business, necessary for development, delivery & distribution of products & services

Support – provide value, necessary for effective functioning, may be delivered through outsourcing

Surplus – roles no longer aligned with strategic vision

Talent Portfolio Alignment Talent Quality Support Role Core Role Strategic Role Low / Low High / High Call to Action Call to Action “ C” Player “ B” Player “ A” Player Role Impact and Value Talent Optimization

Go! Prioritize, Sequence and Execute Key Initiatives “ Do the most important things in the right order and do them well” Talent Acquisition Types of roles, skills and people required for success Think: “make or buy” analysis

Prioritize, Sequence and Execute Key Initiatives

“ Do the most important things in the right order and do them well”

Talent Acquisition

Types of roles, skills and people required for success

Think: “make or buy” analysis

Go! – Prioritize & Sequence Talent Deployment Talent Needs vs. Talent Inventory Current vs. Anticipated Bench Strength Deliberately staff “feeder and development” roles to meet expected Talent Needs Talent Development Prioritize opportunities to develop talent Fill highest strategic and core roles Staff to build capabilities (organizational & individual)

Talent Deployment

Talent Needs vs. Talent Inventory

Current vs. Anticipated Bench Strength

Deliberately staff “feeder and development” roles to meet expected Talent Needs

Talent Development

Prioritize opportunities to develop talent

Fill highest strategic and core roles

Staff to build capabilities (organizational & individual)

Go! – Prioritize & Sequence Rewarding Talent Integrated Total Rewards approach Compensation, benefits, culture, career & work environment Attract, retain and motivate key Talent

Rewarding Talent

Integrated Total Rewards approach

Compensation, benefits, culture, career & work environment

Attract, retain and motivate key Talent

Go! – Prioritize & Sequence Critical Questions: How are our workforce needs changing? What kinds of employees should we be recruiting? What are the development needs of our workforce? Where are our talent gaps and how do we fill them? Which specific roles or job families create the greatest value for our organization? Where do our top performers reside and are we rewarding them appropriately? Does a particular employee have the right skills, competencies and experiences for this role? If not, who within the organization does?

Critical Questions:

How are our workforce needs changing?

What kinds of employees should we be recruiting?

What are the development needs of our workforce?

Where are our talent gaps and how do we fill them?

Which specific roles or job families create the greatest value for our organization?

Where do our top performers reside and are we rewarding them appropriately?

Does a particular employee have the right skills, competencies and experiences for this role? If not, who within the organization does?

Ongoing… Be aware of changing environmental dynamics Build awareness into renewing & refreshing plans for Talent Strategy Be nimble & adjust to changing market requirements

Be aware of changing environmental dynamics

Build awareness into renewing & refreshing plans for Talent Strategy

Be nimble & adjust to changing market requirements

Resources “ Get Off the Talent Treadmill: Hardwiring Talent Strategy to Business Strategy,” Gonzalez, Juan Pablo and Sheridan, Garrett. Workspan (August 2008), pgs. 36-40. “ Translating Business Strategy into Workforce Infrastructure,” Mercer Human Resource Consulting Perspective Newsletter (April 2007)

“ Get Off the Talent Treadmill: Hardwiring Talent Strategy to Business Strategy,” Gonzalez, Juan Pablo and Sheridan, Garrett. Workspan (August 2008), pgs. 36-40.

“ Translating Business Strategy into Workforce Infrastructure,” Mercer Human Resource Consulting Perspective Newsletter (April 2007)