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Rock stars, Ninjas, and Gurus—you support your best people, but are your best people supporting your strategy? Learn to link your corporate strategy to your investment in talent
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Rock stars, Ninjas, and Gurus—you support your best people, but are your best people supporting your strategy? Learn to link your corporate strategy to your investment in talent

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Managers intuitively believe that investing in people is a key way (perhaps the best way) to develop their organizational capabilities for the long term. But, how do we know that we are investing in …

Managers intuitively believe that investing in people is a key way (perhaps the best way) to develop their organizational capabilities for the long term. But, how do we know that we are investing in the right people? Should we be investing in people at all, or could we instead derive more value from investing in particular roles within an organization that provide the unique fabric of differentiated value that defines a high performing organization?

This presentation begins by discussing the strategy mapping approach outlined by Kaplan and Norton [1]and focuses specifically on a customer-focused value delivered by a company as the core of its business model. Building from this we will discuss applying a portfolio approach to talent management [2]by categorizing the various roles in a company and scoring those roles on three categories: contribution to the customer-focused value chain, uniqueness to the organization and variability in performance.

Using this portfolio approach allows us to identify the key roles in an organization that provide high value to clients, are genuinely unique to the company and are most conducive to performance improvement—thereby providing the very best candidates for an organization to invest time, money and energy in recruiting/retaining/developing personnel for those roles.

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  • 1. Rockstars, Ninjas, and Gurus: A different perspective on managing your workforce Presented by: John Strohecker, Executive Director Commercial and Logistics 11 Canal Center Plaza, Alexandria, VA 22314 T 800.663.7138 F 703.684.5189 www.robbinsgioia.com Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 2. Agenda • • • • • • • Why do we need a different way of managing our talent? Strategy Mapping Segmenting Your Workforce Identifying Your Most Strategic Roles Assessing Your HR Processes for Strategic Roles Tools for Applying These Ideas in Your Organization Additional Reading Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 3. The War for Talent In a study of 13,000 executives from over 120 companies… • McKinsey found that 75% of executives said their firms are chronically short of talent. • "Does your company make improving the talent pool one of its top three priorities?" In many companies, only 10% or 20% of corporate officers said yes. • Only 60% of the corporate officers said they were able to pursue most of their growth opportunities. They have good ideas, they have money. They don't have enough talented people to pursue those ideas. Source: Michaels, Handfield-Jones, Axelrod Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 4. “Talent Constrained” Those surveyed said that over the next 20 years the most important corporate resource will not be capital, strategy, ideas or opportunities, but rather talented people who are technologically smart, globally sophisticated and flexible in their response to changing business conditions and customer demands. Source: Michaels, Handfield-Jones, Axelrod Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 5. Some Important Questions for Human Capital Management • Traditional Performance Reviews rate individual performance against annual goals. Better performance = more money Does this work? Are you investing in the right people? • What sets you apart from your competitors? How do your best performers align to these functions? • What if investing in your best people is the wrong way to do business? What if you should be investing in your most important roles instead? Can you do both at the same time? Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 6. Basic Premises 1. Organizations create value for customers through their business model 2. Each role in an organization supports different elements of the business model 3. Some activities create more customer value than others 4. Organizations have a finite amount of money 5. For most organizations employee related costs are the #1 or #2 cost to the business 6. A rational investor allocates funds to the investment that will yield the greatest return Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 7. STRATEGY MAPPING “You can get capital and erect buildings, but it takes people to build a business.” --Thomas J. Watson, founder of IBM “An organization is nothing more than the collective capacity of its people to create value.” --Lou Gerstner, IBM Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 8. Strategy Mapping Strategic Theme: Strategic Theme: “e-Business” Operating Efficiency Long Term Shareholder Value Financial Grow Revenues Q: “How will we create shareholder value?” Cost Structure • Grow revenues and manage cost structure. Attract & Retain Customers Product Leadership Q: “How will we create customer value?” Integrated Solutions Customer • Convergence of hardware, software, and services to provide integrated solutions. Service Q: “What is our internal capability focus?” Internal HW People SW SCM CRM Serv Human Capital • Layoffs • IT Services Culture • Win, Execute, Team • Collaboration Organiz. • Focus on core processes that drive value—then execute and improve! • Governance (CEC) • IT infrastructure Q: “How will our people embody that?” • Establish a high performance culture based on core principles manifested in practice. Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 9. Strategy Mapping Worksheet Strategic Theme:Mapping Stratgy Operating Efficiency Financial Long Term Shareholder Value (π = R–E) Grow Revenues • new • “now” Customer Internal People Human Capital Culture Organiz. Cost/ Productivity Value Drivers Metrics Key Initiatives
  • 10. Segmenting Your Workforce • Categorize your workforce by Function and Role One example: Management Consultant Technology Consultant Business Developers Recruiters Financial Analysts Human Resources Marketing Proposals Contracts Practice Managers Internal IT Business Unit Leadership Executive Management Functional Department Head (Junior, Mid, Senior) (Junior, Mid, Senior) Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 11. Royal Dutch Shell – Talent Segmentation Map 4.5 4 3.5 3 Geologist Geophysicist Petrophysicist Reservoir Engr Wel Engr Production Engr Process Engr Field Engr Asset Maint Product Research Sales & Marketing HR Trading Supply & Distr. Business Consult Finance IT Contract & Procur. a. b. c. d. Specific 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Graduate Middle Manager Middle/Senior Senior Executive 3c 4c 2c 5c 10b 13c 3b 7c 1c 3d 5b13d 2b 2d 1d 9c 8c13b 1b 14c 4d 10d 10c5d 9b 6c 7b 6b 6d 7d 14d 8b 9d 11c 8d 15c 11d 12c 12d 11b 14b 16b 15d 17c 16c 16d 12b 18d 17d 17b 18b 18c 5a 7a 6a 2a 3a4a 10a 8a 1a 9a 14a 13a 11a 15b 15a 12a 18a 16a 17a Generalized 2.5 2 4b 1.5 1.5 2.0 Operational 2.5 3 3.5 4 4.5 5 Strategic Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 12. Human Capital Architecture Complementary Strategic FOCUS: Partnership Unique - select on past experience - develop the relationship - evolving scope - rewards for ideas • FOCUS: Commitment - staff based on potential - develop in situ (firm-specific) - equity based pay & benefits - autonomy/self-direction - mistakes drive learning Support Core • FOCUS: Compliance low WARNING: These general trends may not be appropriate for your particular circumstances. • FOCUS: Productivity - standardize/simplify (outsource) - procedural formalization - narrow scope - error avoiding - hourly pay low Relational Internalization Value - staff based on current skill - development (job specific) - market-based pay - focus on ST performance - mistakes above the water line Transactional high Externalization high Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 13. high PanBio’s Human Capital Map Complementary Strategic C A D B R&D Partners R&D Partners R&D Partners R&D Partners TMT R&D Diagnostics Partners Sales Mfg UNIQUE R&D R&D MIS Diagnostics Legal HR TMT Sales Laboratory Services HR Fin R&D Customer Service Quality Low Distribution Manufacturing Operations Customer Service Support Low Fin VALUE Core high Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 14. Royal Dutch Shell – Talent Segmentation Map 4.5 4 3.5 3 Geologist Geophysicist Petrophysicist Reservoir Engr Wel Engr Production Engr Process Engr Field Engr Asset Maint Product Research Sales & Marketing HR Trading Supply & Distr. Business Consult Finance IT Contract & Procur. a. b. c. d. Specific 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Graduate Middle Manager Middle/Senior Senior Executive 3c 4c 2c 5c 10b 13c 3b 7c 1c 3d 5b13d 2b 2d 1d 9c 8c13b 1b 14c 4d 10d 10c5d 9b 6c 7b 6b 6d 7d 14d 8b 9d 11c 8d 15c 11d 12c 12d 11b 14b 16b 15d 17c 16c 16d 12b 18d 17d 17b 18b 18c 5a 7a 6a 2a 3a4a 10a 8a 1a 9a 14a 13a 11a 15b 15a 12a 18a 16a 17a Generalized 2.5 2 4b 1.5 1.5 2.0 Operational 2.5 3 3.5 4 4.5 5 Strategic Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 15. Complementary Strategic UNIQUE high HUMAN CAPITAL WORKSHEET Human Capital Investment Low Skill Area 1. Support Low Core VALUE high 2. 3. 4. 5. Action Impact
  • 16. Adding A Dimension • Knowing which roles are most valuable is important, but it’s not enough • Remember premise #6: A rational investor allocates funds to the investment that will yield the greatest return • So which positions have the greatest opportunity for improvement? Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 17. Adding A Dimension • Knowing which roles are most valuable is important, but it’s not enough • Remember premise #6: A rational investor allocates funds to the investment that will yield the greatest return • So which positions have the greatest opportunity for improvement? Look for Variability in Performance! Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 18. Talent Management “Companies that invest in human capital, work to develop and retain valued employees, and measure and hold people accountable for that investment have a powerful competitive advantage.” --J. Randall McDonald, IBM • Functionality: Processes & Tools • Vitality: Mindset & Culture Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 19. BUILDING FUNCTIONALITY FUNCTIONALITY Retention - turnover - value prop • Is the system strategically aligned? • Are the practices internally consistent? • Are the processes executed effectively? Engagement - recruitment - selection Assimilation - attitudes - behavior -on boarding -orientation -culture mentoring Rewards Development - pay - recognition - training - coaching Perf. Mgmt. While the functionality of the talent management system is critically important, success also depends on simultaneously… Sourcing - appraisal - goal setting - feedback Career Management - assignment - path planning VITALITY • Commitment • Engagement • Accountability Top Executives Talent Pool HRM Line Managers Without system vitality, the idea of “best practice” in talent management means little. Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 20. Assessing Functionality Retention - turnover - value prop Sourcing - recruitment - selection Engagement Assimilation - attitudes - behavior -on boarding -orientation - culture mentoring 1 2 3 4 5 Rewards Development - pay - recognition - training - coaching Perf. Mgmt. - assessment - goal setting - feedback Career Management - assignment - path planning Source: Ready & Conger (2007) Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 21. Assessing YOUR Talent Management System 1. Select 1-3 strategic jobs: (a) critical to performance of the enterprise, (b) unique skills that are difficult to replace, and (c) variability in performance across individuals. 2. Identify the competencies (knowledge, skills, and personal attributes) needed for success. 3. Make a spider diagram (for each job) that rates the effectiveness of talent management practices (scale 1=poor, to 5=excellent). Sourcing - recruitment - selection Retention 4. Make recommendations to enhance: Assimilation - turnover -total reward -on boarding -orientation 1 2 3 4 5 (a) functionality of the system—use of best practice, effective execution, aligned w/ needs of enterprise, mutually reinforcing, (b) vitality of the system—commitment, engagement, and accountability of leaders, managers, and employees. Development Engagement - training - coaching - attitudes - behavior Deployment Rewards - assignment - career mgmt. - pay - recognition Perf. Mgmt. - appraisal - feedback Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 22. Job Title: ____________________________________________________________ Competencies: Knowledge Skills Attributes • • • • • • • • • Talent System Diagram: Sourcing - recruitment - selection (Ratings: 1= poor, to 5= excellent) Retention Assimilation - turnover -total rewards Engagement -on boarding -orientation 1 2 3 4 5 - training education - coaching - attitudes - behavior Deployment Rewards - pay - recognition Development Perf. Mgmt. - appraisal - feedback - assignment - career mgmt.
  • 23. Putting It Together If you work through these steps you’ll have • Clear of how your organization creates customer value • Segmentation of your workforce by role • Skills and behaviors, by role, which create positive results • Human Capital Architecture that maps roles to value creation and uniqueness/specificity • Identified Strategic roles – critical positions with high variability • Assessment of HR processes vis-à-vis strategic roles – what processes should you invest in to support your most strategic roles? Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 24. Additional reading Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 25. Additional Reading Confidential and Proprietary © 2013 Robbins-Gioia, LLC
  • 26. Thank You For Your Time Questions or Comments: John.strohecker@robbinsgioia.com www.robbinsgioia.com Confidential and Proprietary © 2013 Robbins-Gioia, LLC