Jason Corsello Presents: Talent Management Lessons From the Recession

Lessons From the Recession How We Ensure Talent Readiness for the Turnaround June 11, 2009 Jason Corsello Vice President Knowledge Infusion

About Knowledge Infusion • Leader in human capital Knowledge management, talent management & social collaboration consulting, advisory and intelligence services Passion Talent • Ranked #3 fastest growing private companies in region Partnership Celebration Trust • Headquartered in Minneapolis, Minnesota with offices throughout US • Over 200 global customers including MetLife, Turner Broadcasting (CNN), Luxottica Group (Sunglass Hut), Intuit, Fairmont Raffles Hotels, Clorox, Target • Largest online human capital management community…with over 2,500 members Knowledge Infusion Proprietary and Confidential, Copyright 2009 2

Agenda • Where Are We Now? • What We’ve Learned • Re-evaluating the Importance of Talent Management • Ensuring Talent Readiness Now • Questions Knowledge Infusion Proprietary and Confidential, Copyright 2009 5

Number of layoffs since Nov. 1, 2008, at America's 500 largest public companies*: 574,256 *Total announced layoffs at America’s 500 largest public companies as measured by a composite ranking of sales, profits, assets and market value from Nov. 1 2008 through June 4, 2009. Includes layoffs at subsidiaries, joint ventures, and majority owned companies. Source: Forbes Layoff Tracker: http://www.forbes.com/2008/11/17/layoff-tracker-unemployement-lead-cx_kk_1118tracker.html?partner=relatedstoriesbox Knowledge Infusion Proprietary and Confidential, Copyright 2009 6

Oh, How Times Have Changed… Your greatest individual challenge in recruiting for your organization is? Identifying enough quality candidates to meet the business needs Getting hiring manager to respond in an appropriate time frame Effective technology that can streamline my role as a recruiter 2009 2008 Managing the tasks required in the systems to manage the recruiting activities Other Source: 2008 Knowledge Infusion & ERE - The Future of Recruiting & Sourcing Survey, N = 678; 0% 20% 40% 60% 80% 2009 Knowledge Infusion & ERE – The Future of Recruiting and Sourcing Survey, N=167 Knowledge Infusion Proprietary and Confidential, Copyright 2009 7

Recruiting Budgets are Shrinking Significantly I anticipate my company’s budget on recruiting and sourcing to: 2008 2009 Don't know Don't 10% know Increase 6% 12% Increase 34% Stay the same Stay the 25% same 36% Decrease Decrease 20% 57% Source: 2008 Knowledge Infusion & ERE - The Future of Recruiting & Sourcing Survey Source: 2009 Knowledge Infusion & ERE - The Future of Recruiting & Sourcing Survey N = 678 N = 167 Knowledge Infusion Proprietary and Confidential, Copyright 2009 8

Recruiter Roles Are Changing How do you anticipate your role changing in 2009? 30.00% 20.00% 10.00% 0.00% focus on evaluatingMore focusmanaging candidate do not anticipate my role changing in know Moreexternal, prospective candidates focus on on internal talent management and succession management I relationships I don't 2009 Other Source: 2009 Knowledge Infusion & ERE - The Future of Recruiting & Sourcing Survey N = 167 Knowledge Infusion Proprietary and Confidential, Copyright 2009 9

New Business Realities • Stark realities and fears of ―risk-taking‖ • Increased demand for data-driven decisions • Overhaul of the corporation • Restructuring • Flattening • Customer-centricity • Shared services • New leadership models and management structures Knowledge Infusion Proprietary and Confidential, Copyright 2009 10

Current State of Talent Management • Talent management strategies created when economy was flush have been shelved as too expensive to implement • Focus on development and retention of high performing talent in critical roles • HR budgets for talent management programs cut • Organization-wide hiring freezes and layoffs • Hiring quietly and focused on ―upskilling‖ • Eliminated jobs likely to be ―redesigned‖ • Need all employees to be more productive, do more with less Knowledge Infusion Proprietary and Confidential, Copyright 2009 12

History of HR in a Down Economy • Reactive • Little to no strategic planning • Technology projects come to a halt • ―Nice to Have‖ area of investment • Facilitator of downsizing • Little to no insight into: • workforce demographics • retirement strategies • Flexible work models • Lack of Focus on OPPORTUNITY • Rapidly changing budget, headcount and external supply Knowledge Infusion Proprietary and Confidential, Copyright 2009 13

The Concepts of “Management” are Changing Talent Management 1.0 Talent Management 2.0 ! ! ! ! Interaction Conversation Contribution Transaction Feedback Employee Manager Employees Managers • Employees communicate targeted messages for • Innovation is gathered cross-functionally with close transactional operations connection to final customer. Customer become center of innovation cycle • Innovation segregated to specialized groups within company • Non-tangible employee skills and competencies become desired • Performance based on individual silo • Performance becomes collaborative and team- focused Knowledge Infusion Proprietary and Confidential, Copyright 2009 14

Current Talent Realities Even during these turbulent times, investment in talent is critical… In a survey of 160 financial services executives, 70% acknowledged that Talent Management is one of the top people issues most critical to organizational success Upgrading Talent ―A downturn can give smart companies a chance to upgrade their talent. As deteriorating performance forces increasingly aggressive head count reductions, it’s easy to lose valuable contributors inadvertently, damage morale or the company’s external reputation among potential employees, or drop the ball on important training and staff- development programs. - The McKinsey Quarterly Source: Deloitte Consulting, Global Talent Management – Formulas for Success in Financial Services, 2008 Knowledge Infusion Proprietary and Confidential, Copyright 2009 15

Top Talent Is Ripe for Cherry Picking! How Top Talent Is Dealing with Tough Times on Wall Street… • Loyalty • The # of employees who feel loyal to their company has fallen 42% over the last year Retention of Top Talent • The number who trust their company is down 41% • Top Talent Flight Risk “If you have strategic advisory • In the wake of mass layoffs troubled firms are finding that many skills, strong business acumen and \"survivors\" look elsewhere a depth of functional expertise, you • 64% are considering leaving are in high demand, even in today’s turbulent times.” • 24% are actively looking for a job • Precisely the wrong talent (top performers w/ other options) are heading - Sally Fisher, Deloitte Consulting for the door • Top Female Talent • 84% of women in this study are considering leaving—compared to 40% of men • \"The cost benefit equation just tipped. Stress is up, comp is down and I sure could use time with my kids. This is a year to sit out.\" Source: BusinessWeek, How Top Talent is Dealing with Tough Times on Wall Street, October 3, 2008 Knowledge Infusion Proprietary and Confidential, Copyright 2009 16

Gone Are The Days of Customization The Old Way The New Way • Streamlined Usability • Configurable • Web Services-Enabled • Upward Compatible • Embedded Analytics • Actionable Knowledge Infusion Proprietary and Confidential, Copyright 2009 17

Talent Management Strategy Fills in the White Space Insight into Talent Manage Critical Roles Develop Key Talent Manage the Bench Mobilize Talent Optimize Deployment Retain & Engage Pay for Performance Develop Talent Pipeline Talent Management Strategy Compensation Management Management Performance Succession Acquisition Planning Planning Learning Career Talent Knowledge Infusion Proprietary and Confidential, Copyright 2009 19

Focus on Retention With the abundance of talent on the market - and fewer opportunities available - it’s easy for firms to grow complacent about retention. However, these employees’ experiences TODAY will determine whether they stay when the economy recovers. Talent Management Imperative Retention Drivers: • Clear Succession Plans signal to top talent ―We can’t afford to not focus on people; that they are valued and that there is a clearly we are in an intellectual capital business. marked path for their success It is more important than ever that we are connecting our emerging leaders and • Workforce Plans focused on creating a more diverse talent with our CEO and senior flexible employee base help to avoid the leadership, as well as working directly with massive layoffs that often come with an line managers to equip them with tools for economic downturn and inevitably take some managing teams during times of top talent down with them unprecedented change.” • Training and Development focused on -Barbara Cona Amone, retooling skills and filling in development UBS Investment Bank needs produces more proactive organizations Source: Heidrick & Struggles, Human Resources Challenges in Financial Services, September 2008 Knowledge Infusion Proprietary and Confidential, Copyright 2009 20

Keeping Critical Roles Filled with Top Talent • Profile the role • Assess current incumbents against the success Keep Building … profile “When the top line looks shaky • Create development plans for current and the bottom line worse, the temptation is to go after incumbents to fill gaps discretionary spending. Fine - but do not consider product • Create succession management plans to development, innovation, and ensure talent pool exists for role brand building optional. Sacrificing your future for a • Create development plans for potential slightly more comfortable successors / talent pools present is not worth it. If you keep building, you can come • Execute development, recruitment & back strong.” succession plans Ram Charan, Fortune, Feb 12th, 2008 Knowledge Infusion Proprietary and Confidential, Copyright 2009 21

Buying Enterprise Software Has Changed • User-Defined • Participation based on users preferences & delivery models • Cloud Computing • IT-related capabilities ―as-a-service‖ • Consumer-Driven • Focus on usability, extensibility, revenue-impacting • Perpetual Beta • End of upgrades and emergence of continuous releases • Interactional • Focus on collective intelligence versus ―transactions‖ Knowledge Infusion Proprietary and Confidential, Copyright 2009 22

Why Social Networks are Important for HR? • Hiring • Onboarding • Engagement • Collaboration • Training • Re-hiring • Knowledge Sharing Knowledge Infusion Proprietary and Confidential, Copyright 2009 24

The Evolution of Talent Management Employee engagement Social Conversation tools Informal network learning analysis Widgets Wikis Process Support Process Support Recruiting Recruiting Performance Mgmt Performance Mgmt Multi- Compensation Mgmt RSS Compensation Mgmt media Succession Planning Succession Planning Learning Learning Speed Blogs Forums time-to Customer market engagement Social networks Rapid time-to- productivity Knowledge Infusion Proprietary and Confidential, Copyright 2009 26

The “Jobless Recovery” A jobless recovery or jobless growth is a phrase used by economists to GDP describe the recovery from a recession which does not produce strong growth in employment. Source: http://en.wikipedia.org/wiki/Jobless_recovery 2005 06 07 08 09 10 11 12 Source: http://www.reuters.com/article/reutersEdge/idUSTRE5465R320090507 Knowledge Infusion Proprietary and Confidential, Copyright 2009 29

10 Emerging Trends in Talent Processes 1. For Managers and Employees, not HR 2. Process Transformation 3. Talent Planning 4. Talent Profile 5. Deepening of Succession 6. Talent Mobility 7. Performance Management in Flux 8. Changing Focus from Competencies to Talent Attributes 9. Co-creation of Talent Data, Content, and Information 10. Talent Intelligence Knowledge Infusion Proprietary and Confidential, Copyright 2009 30

Evolving HR Metrics and Analytics Analytical and conceptual capability gets you over the wall… Value & Impact Business Impact Scorecards  Strategic Impact & Drill- Data downs  Organizational Systems & Change Portals  Validity & Rigor Ad Hoc Benchmarks HR  Causation Measures  Leading Indicators Time and Resources Knowledge Infusion Proprietary and Confidential, Copyright 2009 33

Analytic Capability – Three Distinct Skill Sets Information Insight Impact HRIS Analyst Business Analyst (Analytics COE / HR HR Business Partner / Business BP) Leader Role in Data-Driven HR Role in Data-Driven HR • Ensure high data quality Role in Data-Driven HR • Review data & analysis for • Deliver useful and relevant data to insights & conclusions • Connect systems activities with OE strategy decision makers • Serve as connector to & • Transform raw data into information influencer of other data • Design systems with consumers consideration of ease of & conclusions reporting & analysis • Influence decision & data design • Incorporate data into actions taken & decisions made Expected Activities Expected Activities • Use consistent data calculations & Expected Activities • Modify systems & data entry measure formulas • Review reports & findings of processes to optimize data • Analyze data in support of strategic analysts quality priorities • Communicate findings to others • Take corrective action to improve systems & data quality • Communicate findings clearly to • Influence & drive analysis as needed relevant parties activities • Prioritize data quality & IT • Review analysis in decision making & policy setting projects, given strategic meetings & activities importance • Facilitate action planning & execution Knowledge Infusion Proprietary and Confidential, Copyright 2009 34

What is Your Talent Management Maturity? Future State Transformational Today Leading Fully automated and optimized HRMS business processes Market Average Semi-automated deployed consistently business processes through HR Service Good usage of for HRMS back-office Lagging Delivery model. available operations. HCM Clearly defined KPIs systems, integration strategies leverage Many measure HCM between some cross- Talent manual, paper, incons strategies / tactics functional processes. Management, Perfor istent business effectiveness. Cross- Stable compliance and mance and Learning processes. Multiple functional analytics back- office HRMS linked to operational systems with limited and collaborative business processes business results. HR interfaces, gaps in business processes Portals deploy compliance, redunda yield a transactional redefine HR’s role in nt data entry. Limited focus. Limited KPIs, reports, employ business. usage of reporting or reporting, employee / ee & Manager Direct functionality owned. manager self-service access. through HR intranet. Increasing Business Value and Strategic Capability Knowledge Infusion Proprietary and Confidential, Copyright 2009 35

Getting Started • Build Cross-Functional Teams • Recruiting, Talent Management, Talent Intelligence, Social Collaboration • Get Outside of HR • Business Advisory Committees, Executive Talent Council • Define Top 3 Changes in Business Priorities in 2009 • Better utilize what you ―own‖ – People, Process, Technology • Build Strategy to Develop ―Talent Intelligence‖ • Start Social Collaboration Journey • Build Team • Inventory What’s in Place Today • Locate and Cultivate Executive Sponsors Knowledge Infusion Proprietary and Confidential, Copyright 2009 36

Questions? Contact Information Jason Corsello jason.corsello@knowledgeinfusion.com 1.508.685.9783 Download presentation at the Knowledge Infusion Center of Excellence: www.knowledgeinfusion.com/coe Click register – download presentation Keep coming back to learn more Knowledge Infusion Proprietary and Confidential, Copyright 2009 38

Jason Corsello Presents: Talent Management Lessons From the Recession

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