Welcome to Taleo World. The next couple of days are dedicated to delivering insight - insight on leadership from some of the world’s best known leaders; insight on talent management strategies and best practices; and insight on the tools that can help bring this all together. Insight gives you perspective to drive actions that fuel innovation, transformation and growth. As you saw in the opening video, having true insight is required to know your people and grow your business. Taleo World is the perfect forum to collaborate on how to deliver those insights. We have over a 1,000 people here today representing the best minds in talent management. All year, we have invested a great deal in feedback mechanisms such as our Regional User Groups, Special Interest Groups, Customer Executive Council and the Knowledge Exchange. But, nothing brings it all together as well as Taleo World; so we are very thankful for your participation.
The good news is that never before have CEO’s and line of business managers wanted to know more about what you do all day every day. They are coming to recognize that the best appreciating asset in a knowledge economy is talent and the right talent can drive a company’s top and bottom line, more than any other investment.
Regardless of the economy, CEOs are continuously tasked with driving growth. And in order to do this, they often rely on the same employees - the 20% who drive 80% of the results. This approach is risky, not scalable and is creating a critical juncture in the evolution of talent management. Take for example, some of the recent studies:
The Harvard Business Review reports one in three high performers are disengaged The Corporate Executive Board study finds 25% of high-potential performers will leave their jobs this yearAnd the Bureau of Labor Statistics claims more than half of all people leaving jobs this year are doing so voluntarily
This is not a winning score card for our companies or for us as HR professionals. Can you imagine being the head of sales and missing your numbers 75% of the time, or being the CFO and getting only 25% of your SEC reporting done in a given quarter or the head of materials management and only having enough inventories for half of the year?
Who is responsible for these employee engagement metrics? It is all of us in this room and our ability to drive the right behaviors in our companies to produce results. We are at a critical juncture that is forcing all of us as HR professionals to think much more broadly, more holistically and, quite frankly, with more data driven business orientation. Our industry and profession is changing quickly. A subjective, opinion-driven organization is the last thing the C-level wants to invest in. What is required are objective, growth-enabling business leaders -- on par with the head of sales, head of operations and every other line function. Why? Because we empower the success of every individual in the company
The truth of the matter is many other functions in the company have sounded a louder drum than HR in using data to drive insight and objectivity. In the 1980’s, it was the evolution of ERP systems to provide Materials Resource Planning and just-in-time inventories for Supply Chain Planning. This revolutionized manufacturing and provided those that invested early with dominance in their industries. [CLICK] In the 1990’s, it was the generation of the data warehouse that gave the financial community the ability to roll up general ledgers and financials to analyze the business on a global basis and be able to apply business oriented metrics across the enterprise.[CLICK]This past decade has been about sales force automation streamlining the process from prospects’ interest, to targeting with the right sales campaign for closing the contract. [CLICK] This next decade is going to be your decade. The main differentiator will be our effectiveness in creating a “closed loop” talent system from anticipating a needed skill, to acquiring that skill, and then to refining an inventory of skills for future use.This evolution is happening right now. It is not sustainable for companies to continue to invest in their current programs. Today Global enterprises are spending 100 billion dollars on managing their hard assets - and only 2 billion on managing their most innovative assets – their employees.
As a result, they know more about their property, plant and equipment, than their people. As CEOs look for new ways to re-invent and grow their businesses, it will be crucial to identify, attract and keep top talent. Yet, while most businesses know their employees' titles, salaries and benefits packages, few have visibility into the past achievements, skills, aspirations, performance and potential of their staff. Does this matter? You bet.
Knowing the depreciation rate of plant and machinery is not critical. In fact, who cares? It does not move the needle in business performance. These systems are twenty years old and consuming most of the IT budget. Business leaders are getting smart and pushing back. They want systems that affect growth and can show it. To do this, they will shift their spend from problems that have already been solved toward problems that need to be solved. Spending will migrate to you, to invest in systems and processes that drive the right insight for the right business initiatives. This is where we are at a cross roads. Much like what was done in previous generations in ERP, Finance, and Sales we too must think broader and complete the cycle. We need to adopt a more holistic approach to how people affect our business, and how our talent strategies affect our people. We call this insight into people and perspective, Talent Intelligence.
Talent Intelligence empowers organizations to better understand what their people have accomplished, are accomplishing and could accomplish. This insight is key to engaging people in their work and building for growth. In this volatile global economy, Talent Intelligence can make the difference between innovation and obsolescence, growth and stagnation, market leaders and market laggards
For the rest of my talk today, I would like to share three key talent imperatives that, with the right level of insight can power business growth, flexibility and potential: Developing leaders; Embracing social media; and Closing the talent loop
How does an organization use Talent Intelligence to know their people and grow their business? It starts with the critical need to develop pivotal roles within your organization and re-examine what leadership means. In the 90’s, I am sure many of you can remember, unemployment was at a 20 year low of 4.2% and we were engaged in a “war for talent.” - The challenge was to find good, competent candidates.To drive and effectively run a growing business in a tumultuous global economy, looking for competent people isn’t enough. Businesses need top performers at all levels that can adapt, engage and scale their skills for growth. “Good enough” simply is no longer good enough. Line managers are not willing to accept just anyone that you put in front of them. For those of us that focus on recruiting, you are going to have to provide much more rigor in the evaluation process before you introduce candidates to hiring managers. For those of us in the organizational behavior function, you are going to have to have a much better process for predicting and migrating internal talent to new functions.
With the way that our economy is predicted to move over the next decade the people that you bring into the company will be one of the most important functions in a company. We will not have a jobless recovery but it is not going to be very robust. This will require you to ensure that the people that you do hire fit culturally, have an aptitude for doing several functions over time and embrace a new sense of employee loyalty. Having a talent strategy that does not require turning over the majority of your employee base every few years will be the critical differentiator to business performance.
Our customer, Rogers Communications, the largest provider of wireless voice and data communications in Canada confirmed the need for a Talent Intelligence strategy. Bret Leech, Vice President of Human Resources told us the talent management industry is experiencing a “renaissance” moving from the dark ages into a new era where we need to anticipate and respond quickly to business. Rogers proactively determined that despite economic uncertainty attracting top talent had to continue. In order to do that effectively, they initiated a cultural transformation designed to ensure that behaviors required for success were crystal clear. With 31,000 employees, $12 Billion in revenue, and a business ranging from Wireless to professional baseball, any cultural evolution had to be flexible enough to allow for unique neighborhoods but still unite everyone together within a larger company framework. Beginning with the CEO, Rogers assessed and now measures its identified behaviors throughout the organizationto ensure the continued requirements complement its existing team.Companies like Rogers realize that to be successful a company needs to be nimble and able to shift into the complexities of the business.
So what do you do with all of these new people you hire or the ones that you promote to new roles? In any organization, a person in a new position faces three dilemmas Gaining mastery in competencies and knowing best practices.[CLICK]Meeting high expectations [CLICK]High probability of derailment
The first two issues are straightforward, this last issue of derailment is most significant because it happens often. According to a June article in Management Today – 47% of all new managers fail.
The price of recruiting and performance management failures is very costly. Complex new role demands combined with lack of development support can produce a ‘perfect storm’ in terms of failure on the job. According to Best Practices in Talent Management, beyond the direct costs of on-the-job development, severance and recruitment, there are more significant costs to the organization, such as stalled initiatives, loss of business knowledge, damage to customer and staff relationships, dampened morale and lost opportunities. Given all these high costs, there is a tremendous need for developmentinterventions.
So how do you avoid derailment, lets look at an example of a company a company that took a proactive approach to solving that problem using Taleo Performance.Over the last two decades a small regional bank in North Carolina, went through a series of acquisitions and has grown into one of the largest companies in the worldwith over 250K employees. As a result of its history of acquisitions, Bank of America discovered the need to more effectively onboard and train leaders to quickly assimilate them into their standards and expectations for performance, to proactively avoid derailment.To do this, you need a talent management system of record to assure that the most critical roles in the organization are held by the most capable leaders and to ensure a pipeline of high performers to fill pivotal roles in the future. This requires collaboration which enables Talent Intelligence.
Collaboration is driving transformative changes in the world today, and one cannot speak of collaboration without mentioning the trends in Social Media. More and more organizations are using social media for attracting and recruiting new employees – and social networks such as [CLICK]LinkedIn and Facebook are the preferred medium for this. Most of you in this room have a Facebook account, you may tweet and I would imagine that many of you are on LinkedIn.
According to a recent jobs survey, companies are learning they can find the best talent efficiently, without making a major investment in sourcing, specifically:83% of companies surveyed will recruit through social media networks in 2010[CLICK]92% of companies that are actively hiring in 2010 will use social networks, specifically86% will rely on LinkedIn60% will rely on Facebook50% will rely on TwitterWe understand this and are the only vendor to support all of these social platforms natively.
This “Social learning” includes on-the-job mentoring, idea exchanges, job shadowing and collaboration. It is becoming an impactful adjunct to traditional learning and development programs, addressing 80% of an employee’s developmental learning needs. In fact, over a third of our new business inquiries are looking for learning management and social learning expertise. Our recent announced acquisition of Learn.com and its next generation SaaS Technology for social and formal learning allows us to be the only vendor to offer best in class solutions across the four critical components of a talent optimized organization.An excellent example of a customer who maximized social media is Newell Rubbermaid.
Working with Learn.com, Newell Rubbermaid scaled its learning programs with both social and formal learning activities. The company expanded its classroom style certification training, used emerging tools like video podcasts and learning portals to create “portable” learning options andestablished an internal, global network for ongoing collaborationRubbermaid’s commitment to education was insured by using companywide metrics to align departments and geographic regions so that they could learn better from one another and measure their success.Social media is absolutely powering insight into our people. As business leaders we have a choice on social media, we can learn more about our staff on Facebook than we do internally—or we can embrace social media to extend our Talent Intelligence.
While many may think finding the right talent, particularly when unemployment is at hovering around 10%, would be easy, you all know that is not the case. This issue gets worse when you look at growing disengagement and retention challenges and the need for more agile and adaptable employees capable of taking on new roles in an organization.
In the past 18 months the concept of a “job gap” began to fill the pages of business publications and management journals. While the world had unprecedented unemployment, it also found millions of jobs going unfilled, looking for new or emerging skills that simply didn’t exist to match the need. Examples of critical roles include: actuaries in insurance firms, critical care nurses in healthcare, developers in technology and experienced truck drivers in transportation.We can’t just hire away our openings, we have to look much more holistically and creatively at how we can develop the workforce we need today and will need in the future. Not only do you need to find the right person for each position, you need to gather feedback to assess if you are making the proper quality of hire, as well as aggregating the data to determine if in fact that hiring criteria is aligning with growth objectives. As companies move into emerging growth markets this type of analysis ensures effective organizational operations.
Our customer United Health Group,a diversified health and well being company, with 75,000 employees in 33 countries, supports its strong growth with expansion into emerging markets like India. UHG put in place a program to ensure that new hires in its new geographic markets were set up to succeed. UHG used Taleo to establish a quality of hire measure to determine if they were hiring the right candidates. They leveraged Taleo’s integration capabilities to gain visibility by going across data silos – combining new hire performance scores with sourcing information. They were able to-easily gather input from 100% of the hiring managersidentify areas for improvement,create learning and development programs to boost new hire productivity andminimize turnover ratesThe Talent Intelligence UHG garnered from its analytics and from the Taleo ecosystem helped them manage risks and hone their talent management approach to create successful continued expansion throughout India. UHG tapped the robust online customer community on the Taleo Knowledge Exchange to gather more perspective on hiring and churn in this region to better calibrate their talent planning.
Individually and collectively these trends, are causing an evolution. Talent Intelligence is the necessary component for managing these three trends: driving beyond a “competency mentality” toward one of active leadership development; tapping social media to better connect with our talent; and uniting a central view of talent
Good talent management is about knowing your people and putting the right people, in the right place at the right time. Great Talent Management is having insight into the future needs of your business and the confidence to meet those needs. If you want to be a professional on par with your senior executives, you need to have the same level of insight, which means you need to have the proper tools. You need Talent Intelligence.
Talent Intelligence gives organizations the ability to have the same insights into their talent as they have in their supply chain, their financials, their sales forecast. It is the ability to collect data from disparate sources, synthesize and rationalize that data and perform analytics on it.Talent Intelligence provides the decision support mechanisms to act on that information,along with an ecosystem of companies and individuals that can provide meaningful collaboration on challenges and best practices to help your organization. Talent Intelligence - is the next renaissance in Talent Management.
We recognize today’s business challenges and the critical need to know as much as possible, about an organization’s biggest asset – its people. Our strategy is to close the “talent intelligence gap” and help you know your people and grow your businesses.
Our Talent Intelligence strategy is unique for three reasons:First, we have embedded analytics across our entire product suite, making every talent management interaction smarter. Secondly, the Taleo Cloud based platform automatically gathers information at each stage in the talent process, from recruiting through performance, development and compensation. Taleo has the largest database of applicant information, powering over 200 million talent profiles for our customers. This gives us a unique competitive advantage with information on comparative talent analytics around recruiting trends, performance indicators and job competitiveness. Finally, our Taleo Talent Grid provides access to the world’s largest talent management ecosystem including everyone in this room, plus 4,700 customers dispersed over 218 countries, with 114 unique partner solutions, and a close to 3000 customers engaging in social collaboration on our knowledge exchange.
The Talent Management industry is experiencing a renaissance and you are at the forefront. This is an exciting time. To help prepare you for this we are offering a unique perspective and have the ability to deliver excellent, leading edge solutions to help you gain more insight into the greatest asset you have, your people. Creating a strategic Talent management system is not enough. We know that driving this vision in your organization is more difficult that the act of setting up new systems and processes.
To help you, today you will hear from what I call a great leader and a great practitioner. In preparing General Powell for his address to you we spoke a great deal about leadership and the role of staff leaders and line managers. General Powell will offer some interesting perspective’s on getting your general to do the right thing as staff leaders. A.G Lafley is one of the all-time great CEOs and he will give you a perspective on what he needs to hear from the HR function as a CEO. Over the course of the next few days, I invite you to get a firsthand view on this renaissance, to hear from some distinguished leaders and to power talent intelligence with YOUR insights and perspective. Thank you.
Taleo World 2010 Keynote
Know Your People, Grow Your Business<br />Michael Gregoire, Chairman & CEO<br />
Infrastructurethat drives recruit to retire process<br />Sales Force and Process Optimization<br />ERP Systems<br />Data Warehouse<br />1980<br />2010<br />2000<br />1990<br />Using data to drive insight and objectivity<br />
Achievements, aspirations, and potential<br />?<br />?<br />?<br />?<br />