NINE BEST                                                          The...
TALENT MANAGEMENT DEFINED                                          WHAT’S DRIVING THE CURRENT
2. Talent is a rapidly increasing source                               In 2007, CEO turnover was 13.8 percent,
6. Workforce demographics are evolv-                              >   “We acquired one of our largest competi-
previously held behind closed boardroom                           FIGURE 1: CEO Involvement in Talent Management

Best Practice #3: You must know what                              they go beyond just competencies to
FIGURE 2: DDI’s Leadership Pipeline Model                         lower leadership levels. Our Global
An excellent analogy to consider when                             Best Practice #7: Talent management is
Best Practice #8: Talent management                                  to quantify what’s working in talent man-
ABOUT DDI’S TALENT                                                What are the critical current and future
Though last in line in this model, it’s impor-                    Internal and external forces such as retire-
These initiatives are most effective when                         ent management void, organizations must
In addition to the overview offered in this white paper, DDI can provide specific
REFERENCES                                                       11
Upcoming SlideShare
Loading in...5

Nine Best Practices for Effective Talent Management


Published on

Published in: Business, Education
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Nine Best Practices for Effective Talent Management

  1. 1. WHITE PAPER NINE BEST The idea of managing talent is not new. Four or five decades ago, it was viewed as a PRACTICES peripheral responsibility best relegated to the personnel department. Now, talent man- FOR EFFECTIVE agement is an organizational function that is taken far more seriously. In The Conference TALENT Board’s 2007 CEO Challenge study1, CEOs’ rankings of the importance of “finding MANAGEMENT qualified managerial talent” increased by 10 percentage points or more when compared to the same research conducted just one RICHARD S. WELLINS, PH.D., INTRODUCTION year earlier. Research conducted in 2008 SR. VICE PRESIDENT Organizations know that they must have the by DDI and the Economist Intelligence Unit AUDREY B. SMITH, PH.D., SR. VICE PRESIDENT, best talent in order to succeed in the hyper- (EIU)2 found that 55 percent of executive- EXECUTIVE SOLUTIONS competitive and increasingly complex global level respondents said their firms’ perform- SCOTT ERKER, PH.D., economy. Along with the understanding of ance was likely or very likely to suffer in the SR. VICE PRESIDENT, the need to hire, develop, and retain talented SELECTION SOLUTIONS near future due to insufficient leadership people, organizations are aware that they talent. This point of view was reiterated in must manage talent as a critical resource to one-on-one interviews with top executives, achieve the best possible results. conducted as part of the same research study. Few, if any, organizations today have an ade- This emphasis on talent management is quate supply of talent. Gaps exist at the inevitable given that, on average, companies top of the organization, in the first- to mid- now spend over one-third of their revenues level leadership ranks, and at the front lines. on employee wages and benefits. Your Talent is an increasingly scarce resource, so organization can create a new product it must be managed to the fullest effect. and it is easily copied. Lower your prices During the current economic downturn we and competitors will follow. Go after a may experience a short ceasefire in the war lucrative market and someone is there for talent, but we’re all seeing new pressures right after you, careful to avoid making put on the talent running our organizations. your initial mistakes. But replicating a WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT Are today’s leaders able to do more with high-quality, highly engaged workforce is less? The A-players can, and there should be nearly impossible. The ability to effectively a strategic emphasis on keeping those lead- hire, retain, deploy, and engage talent—at ers—and developing their successors. Many all levels—is really the only true competi- organizations are reducing their workforces, tive advantage an organization possesses. but let’s be careful not to cut so deep that talent is scarce when the economy rebounds. 1 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  2. 2. TALENT MANAGEMENT DEFINED WHAT’S DRIVING THE CURRENT There is no shortage of definitions for this EMPHASIS ON TALENT MANAGEMENT? term, used by corporate leadership the Organizations have been talking about the world over. With a nod to other points of connection between great employees and view, DDI defines talent management as a superior organizational performance for mission critical process that ensures organi- decades. So, why the current emphasis on zations have the quantity and quality of managing talent? people in place to meet their current and There are several drivers fueling this future business priorities. The process cov- emphasis: ers all key aspects of an employee’s “life cycle:” selection, development, succession 1. There is a demonstrated relationship and performance management. between better talent and better busi- ness performance. Increasingly, organi- Key components of a highly effective talent zations seek to quantify the return on management process include: their investment in talent. The result is a > A clear understanding of the organization’s body of “proof” that paints a compelling current and future business strategies. picture of the impact talent has on busi- > Identification of the key gaps between the ness performance. To highlight just a few: talent in place and the talent required to > A 2007 study from the Hackett Group3 drive business success. found companies that excel at managing > A sound talent management plan designed talent post earnings that are 15 percent to close the talent gaps. It should also be higher than peers. For an average integrated with strategic and business plans. Fortune 500 company, such an improve- > Accurate hiring and promotion decisions. ment in performance means hundreds > Connection of individual and team goals of millions of dollars. to corporate goals, and providing clear > A study from IBM found public compa- expectations and feedback to manage nies that are more effective at talent performance. management had higher percentages > Development of talent to enhance per- of financial outperformers than groups formance in current positions as well as of similar sized companies with less readiness for transition to the next level. effective talent management.4 > A focus not just on the talent strategy itself, but the elements required for suc- > Similarly, a 2006 research study from cessful execution. McBassi & Co.5 revealed that high scor- ers in five categories of human capital > Business impact and workforce effective- management (leadership practices, ness measurement during and after WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT implementation. employee engagement, knowledge accountability, workforce organization, and learning capacity) posted higher stock market returns and better safety records—two common business goals that are top of mind for today’s senior leadership. 2 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  3. 3. 2. Talent is a rapidly increasing source In 2007, CEO turnover was 13.8 percent, of value creation. The financial value of and the median tenure for a CEO who our companies often depends upon the left office was six years.8 Boards and quality of talent. In fact, the Brookings investors are putting senior leaders Institution found that in 1982, 62 percent under a microscope, expecting them to of an average company’s value was create value. This pressure, most visible attributed to its physical assets (including at the CEO level but generally felt up and equipment and facilities) and only 38 down the org chart, drives a growing percent to intangible assets (patents, emphasis on the quality of talent—not intellectual property, brand, and, most of just at the C-level, but at all levels. all, people). By 2003, these percentages 5. Employee expectations are also nearly flip-flopped, with 80 percent of changing. This forces organizations value attributable to intangible assets and to place a greater emphasis on talent 20 percent to tangible assets.6 management strategies and practices. 3. The context in which we do business Employees today are: is more complex and dynamic. Hyper-competition makes it more diffi- > Increasingly interested in having cult than ever to sustain a competitive challenging and meaningful work. advantage long term. New products— > More loyal to their profession than to and new business models—have shorter the organization. life cycles, demanding constant innova- tion. Technology enables greater access > Less accommodating of traditional to information and forces us to move “at structures and authority. the speed of business.” Global expansion > More concerned about work-life adds to these challenges—a single com- balance. pany may, for example, have its headquar- ters in Japan, its R&D function in China, > Prepared to take ownership of their and its worldwide sales operations based careers and development. in California. Responding to these myriad challenges And as we mentioned already, the recent makes it difficult to capture both the economic downturn following years of “hearts” and “minds” of today’s work- rapid economic growth adds a whole force. Yet, it’s critical to do so, as new dimension to how we manage tal- research from IBM and the Human ent. Record layoffs, lower engagement, Capital Institute highlights.9 Their July and less opportunity for advancement 2008 study showed that 56 percent of all present additional challenges to man- financial performers understand and WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT aging talent. address employee engagement. This is 4. Boards and financial markets are just one piece of a large body of evi- expecting more. Strategy + Business dence that illustrates how the cultures magazine once described CEOs as “the built within our organizations are crucial world’s most prominent temp workers.”7 to attracting and retaining key talent. 3 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  4. 4. 6. Workforce demographics are evolv- > “We acquired one of our largest competi- ing. Organizations wage a new “war tors and have redundant talent. How will for talent” these days. Today, 60 per- we ensure we retain the best? Who will cent of workers over the age of 60 are oversee the integration? What is the right electing to postpone their retirement management team for our new company? due to the financial crisis, according to Who will help us focus on quality and cost a 2009 survey by CareerBuilder.10 Many containment, while pursuing new markets? hold top positions, squelching the oppor- And which employees will best fit the tunity for lower-level talent to advance new culture?” and leaving younger workers feeling > “We are a global automobile manufacturer stuck (and potentially looking for oppor- that has steadily lost market share. What tunities with other organizations). At all sort of talent are we going to need to levels, each deferred exit from the work- shake up the status quo, rejuvenate our force is one less new hire in an already brand, and give us the action-orientation depressed job market. required to turn things around?” TALENT MANAGEMENT: DDI’S VIEW > “We are introducing a ‘blockbuster’ drug For four decades, DDI has helped thousands that requires us to double our sales force of organizations around the world achieve in the next eight months. In addition to superior business results through hiring, sheer numbers, we also need to add the developing, and retaining exceptional talent. right kind of talent—sales reps who take a Through both this experience and extensive consultative approach with physicians.” research, we identified a number of best The real scenarios described above repre- practices we believe should serve as the sent clear-cut examples of why matching foundation for a talent management system. talent to business needs is so powerful. Best Practice #1: Start with the end in These organizations all hold a common mind—talent strategy must be tightly belief that business success hinges on having aligned with business strategy. the right talent in place—at the right time. Each of the organizations described above Effective talent management requires that is proactively addressing its talent needs. your business goals and strategies drive the But far too often, the connection between quality and quantity of the talent you need. talent and business strategy is considered Procter & Gamble, for example, views “busi- long after strategic plans are inked. ness decisions and talent decisions as one.” And research put forth by the Aberdeen Best Practice #2: Talent management Group showed that best-in-class organiza- professionals need to move from a seat WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT tions are 34 percent more likely to connect at the table to setting the table. succession management strategies with When we gather groups of HR professionals organizational strategies.11 for events, we often ask them who owns tal- Below are statements made by organizations ent management. They point to senior man- whose specific business goals and strategies agement. Many have a seat at the table, drive their talent needs: where they’re involved in discussions about business and leadership strategies that were 4 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  5. 5. previously held behind closed boardroom FIGURE 1: CEO Involvement in Talent Management doors. But securing the right to listen in is not enough. Talent managers need to own parts of the process and serve as partners, guides, and trusted advisors when it comes time to talk talent. Research shows this is no easy feat. In fact, it looks as though neither HR nor senior leader is at the helm of the talent manage- ment ship. DDI regularly takes the pulse of leadership practices around the world. In the most recent report, the Global If talent management is a core part of any Leadership Forecast 2008/200912, leaders organization—if it can be hard-wired into were asked to rate the overall quality of the fabric and operations of an organiza- HR. Only a quarter offered a very good tion’s most essential functions—HR and or excellent rating, and just 30 percent of senior leadership must work together. CEOs viewed HR as a strategic partner. The most successful initiatives are driven by HR with active and enthusiastic support On the flipside, those critical CEOs face from the CEO and other senior leaders— challenges of their own. Top corporate lead- who provide the resources, the budget, ers, such as former General Electric CEO the communication and support necessary Jack Welch, report spending about 50 percent for success. of their time on their people.13 They got involved in recruiting top talent, grooming But HR needs to step up and play a critical high-potentials, and reviewing talent pools. role—more so than in the past. One wouldn’t Speaking on the topic of talent management, question who owns the marketing process, Campbell’s CEO Doug Conant tells us,“I or the financial oversight of an organiza- would say CEOs, on average, understand and tion—that’s clearly the domain of the top appreciate talent more than the everyday marketing or financial officer and their person because they know they can’t do teams. Likewise, HR needs to own and put their jobs without it.” Yet, we find evidence in place professional talent management in our Global Leadership Forecast14 research processes. And they need to get closer to that not all CEOs share this mindset. We the business. One way to do this: Work asked both CEOs and HR professionals how with line managers to develop business often CEOs are actively engaged in four dis- plans that integrate talent plans, including tinct talent management activities. Though advice on the ability to meet the business WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT half of CEOs took credit for personally goal with the talent on board. When gaps developing or mentoring other executives, exist, talent management professionals need ratings from both CEOs and HR were star- to offer solutions to close them. In short, tlingly low in all other categories, as illus- talent management professionals have to be trated in Figure 1. trusted business advisors that execute the organization’s talent management process. 5 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  6. 6. Best Practice #3: You must know what they go beyond just competencies to you’re looking for—the role of Success include four complementary components: ProfilesSM. > Competencies: A cluster of related Numerous studies show that companies behaviors that is associated with success with better financial performance are more or failure in a job. likely to use competencies as the basis for > Personal Attributes: Personal disposi- succession management, external hiring, and tions and motivations that relate to satis- inside promotions. Research highlights faction, success, or failure in a job. include: > Knowledge: Technical and/or profession- > The Aberdeen Group found 53 percent of al information associated with successful best-in-class companies have clearly performance of job activities. defined competency models, compared to just 31 percent of other organizations > Experience: Educational and work (which post less impressive performance).15 achievements associated with successful performance of job activities. > Aberdeen research also shows that best-in- class organizations are 45 percent more The end result: detailed definitions of what likely to have models for key positions16 is required for exceptional performance in and 64 percent more likely to have models a given role or job. Success Profiles can be for all levels of their organizations than used across the entire spectrum of talent other organizations. 17 management activities—from hiring and performance management to development. > Research from the Hewitt Group illustrates that top global companies consistently Best Practice #4: The talent pipeline is apply their competency models across the only as strong as its weakest link. organization, and their competencies are Many organizations equate the concept of significantly more aligned with overall talent management with senior leadership business strategies. Eighty-four percent of succession management. While succession top global companies demonstrated align- planning is obviously important, our belief is ment, compared to just 53 percent of that talent management must encompass a other organizations.18 far broader portion of the employee popula- The power of competencies broadens when tion. Value creation does not come from organizations use what we call “Success senior leadership alone. The ability of an ProfilesSM.” There are two reasons this organization to compete depends upon the approach is more effective than mere com- performance of all its key talent, and its petency models. First and foremost, Success ability to develop and promote that talent. WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT ProfilesSM are designed to manage talent in Many people know this as a Leadership relation to business objectives—they should PipelineSM. Figure 2 illustrates DDI’s reflect key plans and priorities as well as approach to managing talent using a change with new strategies. Additionally, Leadership PipelineSM strategy. 6 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  7. 7. FIGURE 2: DDI’s Leadership Pipeline Model lower leadership levels. Our Global Leadership Forecast study revealed that only 28 percent of the companies we surveyed have a system in place for key individual contributors and just 38 percent have one for frontline leaders.20 Best Practice #5: Talent Management is not a democracy. Bank of America has a philosophy: Invest in the Best. Many companies do the opposite, The Aberdeen Group19 found evidence to and make a mistake by trying to spread lim- support the importance of a Leadership ited resources for development equally Pipeline approach in a 2008 report on suc- across employees. We’ve found that organi- cession management. They found the best- zations realize the best returns when prom- in-class organizations they studied are 40 ising individuals receive a differential focus percent more likely than all other organiza- when it comes to development dollars. tions to focus on developing a Leadership So who should get these benefits? Two Pipeline across all levels of the organization. major categories: high-potential leaders and A more encompassing approach to manag- individuals who create value for their organi- ing talent is also essential to proactively zations. For example, Sunoco places special manage career transitions. Each level in our emphasis on mid-level plant managers model has different, but overlapping, because these leaders are, for the first time, Success Profiles, as well as its own set of managing multiple functions. Extra develop- transitional challenges. Effective talent man- ment increases their success in these pivotal agement requires not only developing peo- roles. 21 Countless other organizations mine ple for their current roles, but also getting their mid-level ranks for leaders with the them ready for their next transition. For potential to advance into strategic or senior example, individual contributors being con- roles. And some companies focus on value sidered for frontline leadership positions creators such as engineers or sales associ- must make a critical transition from defining ates whose results are most beneficial for success based on their own performance to their employers. These groups are most likely the performance of the team they manage. to return the most on any investment in Similarly, the operational leader being their development. groomed for a strategic leadership position must shift from a business unit or functional Best Practice #6: Potential, performance WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT perspective to that of an enterprise guardian. and readiness are not the same thing. A planned approach to transitions is espe- Many organizations understand the idea of cially important as organizations place more a high-potential pool or a group of people emphasis on “growing their own leaders” who receive more developmental attention. rather than making often risky outside hires. But sometimes, they fail to consider the dif- The bad news is that few organizations have ferences between potential, performance, proactive succession processes in place at and readiness. 7 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  8. 8. An excellent analogy to consider when Best Practice #7: Talent management is examining the differences between potential all about putting the right people in the and readiness is the early career of an athlete. right jobs. The stars of today’s fields, courts, pools, The late Douglas Bray, Ph.D., a revered rinks, and every other venue you can think thought leader in the field of industrial and of are ready. They’re ready to compete, and organizational psychology, devoted much of equipped to win. But they achieved their his career to one of the most famous and success through years of practice, with respected studies ever done on talent man- attention from coaches or trainers and agement: The AT&T Management Progress countless hours of preparation and practice. Study. Bray followed AT&T managerial talent One can assume they’ve had excellent per- throughout their 30-plus-year careers, mark- formance at each level of competition— ing changes in their skills and motivations however good performance on a high over time. More than a decade ago, he school team may fall woefully short at the made a statement that stuck with one of college level and good performance at one the authors of this white paper: “If you level of competition is no promise that the have only one dollar to spend on either athlete can keep up at the next level. Early improving the way you develop people on in that athlete’s career, it’s likely that or improving your selection and hiring someone somewhere likely recognized his process, pick the latter.” or her potential. The young athlete may still Why should an organization place the be learning the correct way to hold a bat or higher priority on selection rather than throw a ball, but coaches can see innate tal- development? ent that signals a star athlete—with years of > Not everything can be developed. Many practice and coaching, of course. elements of Success Profiles are impossi- Taking a leader from potential to readiness is ble, or at least very difficult, to develop. an equally long process. It takes, on average, Training people to improve their judg- 10 years for a high-potential leader to ment, learning agility, adaptability—all advance into a senior position and along the core requirements for most of the talent way, that individual needs mentoring, stretch hired today—is difficult, if not impossible. assignments, personalized development Lack of motivation for a specific role or a poor fit between employees’ values and plans, and development activities to build those of the organization leads to poor key skills. In short, it’s a lot of work. performance, and no classroom experi- And it’s work, we’ve found, that organiza- ence or learning activity will change this tions are not doing. The Global Leadership fundamental mismatch. But you can get a Forecast reports that only about half of the read on these areas during a well-designed WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT world’s organizations identify high poten- hiring/promotion process. tials. Even fewer (39 percent) have pro- > Hiring for the right skills is more efficient grams to accelerate development.22 If than developing those skills. What about organizations—like athletics—don’t scout the areas that are developable, like inter- for talent and then prepare individuals for personal skills, decision-making, or techni- top performance, how can they expect to cal skills? Assessing those areas at the time have a winning team in the future? of hire is likely to cost less than developing them later. 8 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  9. 9. Best Practice #8: Talent management to quantify what’s working in talent man- is more about the “hows” than the agement, why those initiatives are effec- “whats.” tive, and what impact they have on the organization. Organizations have many “whats” relative to talent management, including executive As part of our Global Leadership Forecast resource boards, software platforms, nine- research23 we compared the effectiveness box grid comparing potential to perform- of organizations’ leadership development ance, development plans, and training, efforts and how well they used the five training and more training. These “whats” factors of realization. Organizations with promise nothing on their own. Guarantees the most effective leadership development come from “hows” instead. Our five realiza- programs in place also used the realization tion factors for sound execution are: factors most effectively to execute develop- ment strategies—outperforming organiza- > Communication—Links the talent man- agement initiative to the business drivers, tions with the least effective development puts forward a vision the organization can programs by 28-62 percentage points! rally around, and sets expectations for Best Practice #9: Software does not what will happen in the organization. equal talent management. > Accountability—Role clarity so that each Claiming a piece of software can provide a individual in the talent management ini- full talent management system is a bit like a tiative knows what is expected of them. food processor will produce a five-star meal. > Skill—Developing the right skills and These tools are valuable in support of a providing coaches and mentors for good plan or recipe. The right tools clear support. the path for smoother execution and may improve the end product. But tools mean > Alignment—Must align talent manage- nothing without the right expertise and the ment initiatives to the business drivers but also need the right kinds of systems right ingredients behind them. to identify high potentials, to diagnose A recipe for five-star talent management for development, to link to performance includes a potent blend of content, expertise, management, and to do development that and technology. It takes best-in-class content really changes behavior. to drive the assessment and development of > Measurement—You can’t manage what people, and a system constructed by knowl- you don’t measure. It creates the tension, edgeable experts who have seen a range of and objectives become clearer to help implementations—they should know what execute a talent strategy. The most effective works, and what doesn’t. Software should WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT measurements go beyond mere statistics support the process, but it can’t stand alone. 9 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  10. 10. ABOUT DDI’S TALENT What are the critical current and future MANAGEMENT APPROACH business contexts and challenges your DDI has combined the best practices organization is facing? This includes strategic described above into a comprehensive priorities, which come from long-range operational plans. Other elements are cul- talent management approach, represented tural, guiding how you expect your associates visually in Figure 3. to act and behave. When combined, these This approach, which we have applied suc- priorities inform an organization’s business cessfully in multiple organizations, encom- drivers, which are the challenges leaders passes all of the major steps, processes, and and key talent must face to successfully activities required to systematically manage execute on strategy and culture. A few an organization’s talent. examples of business drivers that our FIGURE 3: DDI’s Talent Management Model The first “business landscape” block is your clients are using include: Build a High starting point (see Figure 4). Performance Culture, Drive Product Innovation, and Enter New Markets. FIGURE 4: Business Landscape Because our philosophy centers around starting with the end in mind, we look at the “outcomes” box (see Figure 5) next. FIGURE 5: Outcomes WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT 10 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  11. 11. Though last in line in this model, it’s impor- Internal and external forces such as retire- tant to examine what success looks like ments, cultural diversity, and regional early. What are the targets for success, and recruiting trends all affect future success. how will they be measured? Workforce Organizations want to ensure their supply effectiveness measures deal with lead indica- of leaders meets demand, so identifying and tors such as engagement scores, cost of hire, addressing future gaps has to be part of the time to productivity, number of open posi- plan today. Finally, analysis of the organiza- tions filled internally, and improvement of tional situation discerns the state of talent leadership skills. Business impact measures management within a company. It defines focus on the efficacy of talent management who owns talent management, how it is systems, including improvements in produc- supported by senior leadership, what sys- tivity, number of new innovations or tems will support individual initiatives, and patents, and growth in emerging markets to the role of HR in executing the strategy. name a few examples. After talent implications, the focus turns to So how are we getting to our outcomes? the “growth engine,” pictured in Figure 7. The initial focus is on “talent implications” FIGURE 7: (see Figure 6). Growth Engine FIGURE 6: Talent Implications This encompasses the systematic and integrated initiatives that will close the Here you would ask,“does our organization talent gap: have a sufficient supply of talent in key posi- > Selection to ensure a sufficient supply of tions to execute our strategies today and talent at all levels; tomorrow?” Examining capacity gaps entails looking at the quantity and quality of talent > Development to build individuals’ readi- in house. Many companies compile a “talent ness to achieve organizational, role, and balance sheet” to track strengths and liabili- personal objectives; ties of leaders and other key value creators. > Performance management to create the WHITE PAPER — NINE BEST PRACTICES Next, look ahead to capacity projections. FOR EFFECTIVE TALENT MANAGEMENT alignment and focus needed for strategy Ask where the business is going, and if you’ll execution; have the capabilities necessary to accom- plish longer-term goals. People trends are > And succession management to develop also part of the talent implication equation. and elevate talent over time. 11 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  12. 12. These initiatives are most effective when ent management void, organizations must they are built on common competency be careful not to rush into implementing models or, optimally, Success Profiles. The initiatives or programs that are more about advantage of Success Profiles is that they are taking action than about implementing a informed by the business drivers described well-crafted solution. in the business landscape box, so they natu- Careful planning, culminating in a sound tal- rally create the alignment we feel is so ent strategy that is tightly connected to the important to success. organization’s overall business strategies and business needs, is required for talent man- THE VALUE OF PLANNING agement to become ingrained in an organi- Talent management has never been more zation’s culture and practices. Only when of an immediate concern than it is right this happens is it possible for talent manage- now. But in the rush to fill a perceived tal- ment to be both effective and sustainable. WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT 12 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  13. 13. In addition to the overview offered in this white paper, DDI can provide specific best practices and advice for implementing each of the components of the Talent Management model. To learn more about DDI’s approach and our talent manage- ment capabilities, including solutions for hiring, development, assessment, and performance management, contact your DDI representative, call 1-800-933-4463, or visit www.ddiworld.com. ABOUT THE AUTHORS Richard S. Wellins, Ph.D. Senior Vice President Dr. Wellins is responsible for leading DDI’s research programs, launching new solutions, building strategic alliances, and executing marketing strategies. During his tenure at DDI, Wellins has authored five books on leadership and teams. Most recently, he served as DDI’s overall project leader in the development of a new competency model for workplace learning professionals, sponsored by the American Society for Training and Development. Currently, he is involved in consulting engagements with Leed’s, Texas Children’s Hospital, Infosys, and Nissan. Audrey B. Smith, Ph.D. Senior Vice President, Executive Solutions Dr. Smith and her team spearhead DDI’s global consulting resources to help organi- zations identify, develop, and deploy executive-level talent. Dr. Smith is a recognized thought leader in executive succession management, and co-authored Grow Your Own Leaders (2000), a comprehensive and flexible guide for developing extraordi- nary leaders. She heads DDI’s Executive Solutions Group, which offers strategic consulting, talent assessment, accelerated executive development, performance management/accountability systems, culture change consulting, and other executive team interventions that link strategy to execution. Some of her clients include sanofi- aventis, Citigroup, Toyota, Lockheed Martin, and Microsoft. Scott Erker, Ph.D. Senior Vice President, Selection Solutions Dr. Erker’s global perspective on workforce selection comes from his work with organizations around the world on personnel hiring strategies ranging from large- WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT volume hiring for start-ups to steady-state selection system operations, including measuring return on investment. Dr. Erker has worked with numerous Fortune 500 companies, including General Motors, Kodak, Microsoft, and Coca-Cola. He has extensive international experience in defining competencies, developing and imple- menting selection and assessment programs, and measuring program return on investment for DDI’s global client roster. 13 © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.
  14. 14. REFERENCES 11 Saba, J. & Martin, K. (2008 October). Succession management: Addressing the leadership development 1 Rudis, E. (2007). CEO challenge: Perspectives and challenge. Aberdeen Group research report available analysis 2007 edition. (R-1418-08-RR). New York: online at www.aberdeen.com. The Conference Board. 12 Howard, A. & Wellins, R. (2008). Global Leadership 2 Growing global executive talent: High priority, limited Forecast 2008/2009. Pittsburgh, PA: Development progress. (2008). Development Dimensions Dimensions International. International (DDI) in cooperation with The Economist 13 Intelligence Unit. Pittsburgh, PA: Development Handfield-Jones, H., Michaels, E., & Axelrod, B. Dimensions International. (2001, November/December). Talent management: A critical part of every leader’s job. Ivey Business 3 Teng, A. (May 2007). Making the business case for Journal, 66 (2), 53-58. HR: Talent management aids business earnings. 14 HRO Today magazine. Retrieved from Howard, A. & Wellins, R. (2008). http://www.hrotoday.com/Magazine.asp?artID=1693 15 The looming leadership void: Identifying, developing, on April 17, 2009. and retaining your top talent. (2007 November). 4 Bassi, L. & McMurrer, D. (2006 April). Human capital Aberdeen Group Research report available online and organizational performance: Next generation at www.aberdeen.com. metrics as a catalyst for change. McBassi & 16 Saba, J. & Martin, K. (2008 October). Company white paper available online at 17 www.mcbassi.com. The looming leadership void: Identifying, developing, and retaining your top talent. (2007 November). 5 Integrated talent management part 1: Understanding 18 the opportunities for success. (2008 July). IBM Gandossy, R., Salob, M., Greenslade, S., Younger, J., Institute for Business Value. Available online at & Guarnieri, R. (2007). Top companies for leaders www.ibm.com. 2007. Hewitt & Associates in partnership with Fortune and the RBL group. Lincolnshire, IL: Hewitt & 6 Kaplan, R. & Norton, P. (2000). The strategy-focused Associates. organization. Boston: Harvard Business School 19 Press. See also: Blair, M. (1995). Ownership and Saba, J. & Martin, K. (2008 October). control: Rethinking corporate governance for the 20 Howard, A. & Wellins, R. (2008). twenty-first century (Chapter 6). Washington, D.C.: 21 Brookings Institution. Conger, J. A., & Fulmer, R. M. (2003 December). CONTACT INFORMATION Developing your leadership pipeline. Harvard 7 WORLD HEADQUARTERS Lucier, C., Schuyt, R., & Tse, E. (2005, Summer). CEO Business Review, 81(12), 76-84. 412.257.0600 succession 2004: The world’s most prominent temp 22 workers. Strategy + Business, (39), 28-43. Howard, A. & Wellins, R. (2008). E-MAIL INFO@DDIWORLD.COM 23 8 Karlsson, O., Neilson, G., & Webster, J. (2008, Howard, A. & Wellins, R. (2008). WWW.DDIWORLD.COM/LOCATIONS Summer). CEO succession 2007: The performance paradox. Strategy + Business, (51). 9 Integrated talent management part 1: Understanding the opportunities for success. (2008 July). 10 Six-in-ten workers over the age of sixty postponing retirement due to economic downturn, finds career- WHITE PAPER — NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT builder survey. (2009 March.) Retrieved April 17, 2009 from http://www.careerbuilder.com/ shareaboutus/ pressreleasesdetail.aspx?id =pr485&sd=3%2f17%2f2009&ed=12%2f31% 2f2009&cbsid=13ea99228bae472c9463a8324 d75d491-293294162-wc-6. 14 *JAUT* JAUT MKTEAWP01-0409MB © Development Dimensions International, Inc., MMVI. Revised MMIX. All rights reserved.