talent_strategies

Talent Strategies Alice Kwan Michael Kauer

Upon completion of this course, you should be able to:

Understand the global workforce trends and why having a talent strategy is important

Understand Deloitte's direction and how we are planning to go to market with this service offering

Understand Deloitte's point of view on Talent Strategies

Understand our OPP approach to developing a talent strategy

Apply the tools to develop a talent strategy

Identify Talent Strategies opportunities at clients

Know where to go to get additional information

Learning Objectives for Today

Table of Contents

Introduction

Why this is Important

Deloitte’s Direction – What the Firm is Doing about It

Human Capital’s Approach

Deloitte’s Talent Management POV

Framework

Approach

Intro to the Exercise

Contacts

Talent Strategies Introduction

Question How many of you have participated in the design or implementation of a Talent Management initiative?

Question What is Talent Management? What is a Talent Strategy? What is Talent Strategies?

Definitions Talent Management is the integrated set of processes, programs, and technologies designed to Develop, Deploy, and Connect critical workforce segments and critical skill sets to drive business priorities. A Talent Strategy is the output of the work we do in Talent Management. Talent Strategies is one of OPP’s service offerings that will enable clients to have the talent required to deliver the business strategy.

Question What are Critical Workforce Segments?

Definition

Critical workforce segments are the internal groups that drive the organization's success (typically defined as top or bottom line impact)

That is, groups that are driving a disproportionate share of key business outcomes

The critical talent of an organization generally represents a distinct minority of the total payroll

Talent Strategies Why This is Important

Drivers of the need for Talent Strategies

Quality leadership is a major determinant of long-term success

Aging executive population coupled with rapid consolidation that often eliminates traditional preparatory positions

Workforce composition is changing

An aging and increasingly diverse workforce puts more pressure on organizations to recruit young talent and find new ways to source diverse employee populations

Employee loyalty and tenure is decreasing

Management turnover is expected to exceed 20%

In “traditional” firms, over 40% of managers are eligible to retire soon

Business challenges and the skills required are changing

More than 80% of US firms say they face a shortage of qualified machinists, craft workers, and technicians.

NASA projects that 2 million Science and Engineering (S&E) workers will retire between 1998 and 2008 – only 5% of the college students earns an S&E degree

A small percentage of the workforce make a disproportionate contribution to the bottom line

Talent Strategies Deloitte’s Direction

The Firm and OPP are Working Closely to Deliver the Talent Strategies Hot Topic Talent Management PRD Team Client Validation Talent Strategies POV and Service Offering Internal Rollout O&PP Adoption External Rollout Industry POVs Global Support Materials Pieces of the Talent Strategies Rollout Plan Practitioner Training

Five-part series by Deloitte Research offers fresh thinking on talent management

Two big catalysts:

Looming demographic shifts

Need to achieve higher returns on labor / knowledge work (typically firms’ largest investment)

Key objectives

Present differentiated perspective

Heighten CxO awareness of demographic trends and implications

Challenge conventional thinking / typical response to tight labor markets

Present differentiated perspective

Generate interest in (an evolving) comprehensive client service offering

Target Audience

External: CEO, CFO + Sr. HR Executive + other C-Suite

Internal: H Cap, S&O, cross-industry, HR, cross-regions

US: Jeff Summer, Bill Chafetz, Jeff Schwartz

EMEA: Brett Walsh, Jörg Schiele

A Pac: Dick Kleinert

Global: Ainar Aijala, Jim Wall

Global markets: Germany, Japan, Italy, Spain, UK, US, Canada, Switzerland, Austria, Netherlands, Australia, S Africa, China

It’s 2008: Do you Know Where your Talent Is? Overview

Why Acquisition and Retention Strategies Don’t Work (1Q ‘05)

Why do current demographic trends require a fundamentally different approach to talent management?

This piece serves as a foundation for rest of the series

Deploying Talent Across the Global Enterprise (2-3Q ‘05)

Organizations increasingly need an enterprise-wide perspective of their talent needs and capabilities (current and projected)

How do you build enterprise-wide talent models to achieve market flexibility? What is the role of offshoring?

Developing the Future Workforce (2-3Q ‘05)

Current demographic shifts, coupled with the speed and complexity of business, suggest that organizations must ramp up their development capabilities.

How do orgs create this capacity? How does effective development occur?

Connecting the Global Workforce (3-4Q ‘05)

Knowledge workers are fast becoming intertwined in complex networks of global organizations, alliances, partnerships, where virtual relationships far outnumber face-to-face.

What must leaders know about the nature of these networks and their interdependencies? What tools and approaches can they apply to understand and bolster the networks through which work gets done?

Building Global Leadership Across the Talent Enterprise (3-4Q ‘05)

What leadership capabilities are required to make all this happen?

It’s 2008: Do you Know Where your Talent Is? The Series – Five Briefings

It’s 2008: Do you Know Where your Talent Is? Key Messages

Talent markets will become tighter

Traditional response is to focus on “acquisition and retention”

This is an inappropriate response

Costly

Focus is on metrics or outcomes

Command and control mentality

Doesn’t target drivers of employee commitment / engagement

Instead, need to build strategies around things that matter to critical segments:

Development or growth

Deployment on jobs and projects that engage them

Connection to others (networks and quality of interactions)

It’s 2008: Do you Know Where your Talent Is? Rollout

Officially launch to the media in January 2005

We will be providing a range of supporting materials such as sample press releases, sample client letters, PowerPoint presentations, and media FAQs

These materials will be posted on Marketplace and Deloitte Resources as they become available

The Talent 2008 paper is now available on:

Marketplace (https://marketplace.deloitte.com)

Deloitte Resources (https://www.deloitteresources.com/pgContent.aspx?cid=44339&sid=2935)

Talent Strategies Human Capital Approach

Human Capital recognizes the strategic business implications of the workforce trends and has made Talent Strategies one of three Hot Service for O&PP

Resources and investment is being committed to develop compelling thoughtware, tools, and training

Human Capital has decided to focus Talent Strategies in six industries

Partnering with S&O and other service areas to develop industry segment specific POVs

Partners/Directors owning creation of POVs

Working with industry leaders to get buy-in and push out to GSR/SR teams

Human Capital Approach to the Opportunity

Industry Specific Points of Views

National O&PP will focus on creating industry-specific POVs in industry segments where we have significant client relationships:

HealthCare Life Science

Life Sciences (Alice Kwan / Shoma Chatterjee)

Energy

Oil & Gas (Jim Sowers / Sarah Woody)

Public Sector

Federal (Tim Garmager / Kirk White)

Manufacturing

Process Manufacturing (Tim Short)

Financial Services

Insurance (Mike Evangelides / Andy Leokopoulos)

Consumer Business

Consumer Products (Bill Chafetz / Alan Schnur)

Talent Strategies Deloitte’s POV

Our Point-of-View The Talent Game is Changing

Supply-demand: The retirement of Baby Boomers and a looming skill gap will create a supply-demand situation unlike any in history

Rise of global talent markets

The 20th century saw the rise of customer and financial markets; talent will be the scarce resource as we enter the 21st century

Firms will have to source talent needs across global market as local pools of critical talent (e.g., scientists, engineers, and nurses) dwindle

Nature of work: As knowledge work prevails, firms will have to find new ways of achieving higher returns on their largest investment

Shifting expectations: Recent statistics suggest that fully half of the workforce is disengaged

Our Point-of-View Traditional Talent Management Process

Traditional approaches:

Do not allow individuals or organizations the flexibility they need to grow

Are costly (firms spend 50 times more on recruiting than training)

Focus on metrics and outcomes, rather than what really matters to talent

Do not get to the heart of where value is created

Often are divorced from broader business aims, such as strategic goals and firm branding

Acquire Deploy Develop The Traditional Talent Management Process Retain

Our Point-of-View Traditional Approaches will not Suffice

In the 1990s, companies waged the war for talent by offering rich compensation packages and “hot skills” bonuses

Such tactics are easily matched by competitors

Monetary rewards do not sustain interest

“ A players” and stars are often first to leave

Attention and resource is on recruiting, not engaging employees

Our Point-of-View We need a Shift in Mindset

Need to build strategies around things that matter to critical talent:

Their development or growth (recognizing that training is a small part)

Their deployment onto jobs or projects that engage them (creating the roles and conditions that tap their greatest potential)

Their connection to key others (focusing on the networks and quality of interactions that they need to succeed)

By focusing on the development, deployment, and connection, the attraction and retention of critical talent largely take care of themselves

Develop-Deploy-Connect Cycle Develop Connect Deploy Performance Capability Alignment Commitment Connect focuses on how individuals interact and perform together. Develop means helping employees build the capabilities they need to achieve personal and business goals. Deploy means providing employees with the experiences they need to perform to the full extent of their abilities. Enabled by Human Capital Programs

What Employees Expect from Companies Source: HR Executive Review: Implementing the New Employment Compact (New York: Conference Board, 1997)

Improving Talent Strategies

Rather than focus on acquiring and retaining talent, talent savvy organizations support their key people on the issues they care about most:

Doing work that engages them

Learning how to do it even better

Encountering fresh challenges

Interacting with people in positive ways

The Talent Strategies service offering to helps organizations identify, develop, deploy, and connect their critical talent

Talent Strategies Framework

Framework Our framework focuses on people implications as a critical element of the business strategy Business Priorities Critical Workforce Segments Critical Workforce Trends Identify/Rationalize/Validate Integrated Talent Management Strategy

Recalibrate Human Capital Programs

Performance Management

Rewards & Recognition

Workforce Movement

Knowledge Retention

Organizational Learning

Develop Deploy Connect Alignment Commitment Capability Manage Performance Enabled by Human Capital Programs

Mapping Human Capital Programs to DDC Develop, Deploy, and Connect: Linkages to Human Capital Programs Deploy Conct Devlp Devlp Devlp Human Capital Programs

Talent Strategies Approach

Step 1: Identify Business Priorities, Identify Critical Workforce Trends and Segments

Understand the organization’s business priorities in order to identify the people implications that will directly impact business objectives

Identify those segments of the workforce that disproportionately contribute to the success of an organization

Identify industry specific workforce trends that have a significant impact on critical workforce segments

Step 2: Executive Diagnostic Tool Each dimension covered in the diagnostic includes a formal definition to “anchor” and guide the questions One simple tool to begin a conversation about Talent Management, based on the work of Deloitte Research Identifies sample materials to request related to each section of the diagnostic

Diagnostic questions probe key com-ponents of effective talent management

Stretch assignments and job rotations

Mentoring/Coaching

Networks

Training

Embedded in the questions are queries as to effectiveness of Talent Management dimensions and their contribution to the organization’s growth and innovation

Diagnostic Anchors

Obtain qualitative data and analyze in a quantitative manner

Consistent rating scale across dimensions

Consistent areas of focus

Diagnostic will inform the development of the prioritization roadmap

A consistent 3 point rating scale allows for the evaluation of each area within a given dimension and informs the SWOT analysis Rating Scale

Steps 3 – 5: Informing the Roadmap

Step 3: The Diagnostic Summary categorizes the results into 4 buckets based on industry trends:

Strengths

Weaknesses

Opportunities

Threats

Step 4: The Human Capital Program Diagnostic Tool is used to analyze current HC programs with focus on Critical Workforce Segments Step 5: The Talent Management Prioritization Roadmap provides a detailed outline of actions and business case for the organization to enhance and integrate HC programs over a defined time period Integrated Talent Management Strategy Capability Alignment Commitment We then translate the results into three key out-comes of develop, deploy, and connect that directly impact business execution

Diagnostic Dashboard – Summary Strengths

Knowledge management practices are tightly linked with the transition of colleagues

Workforce policies have been documented and communicated across business units

Lack of a formal, consistent transition process

Performance management is not evaluated on a regular basis and does not focus on the development of the next generation of leaders

Weaknesses Threats Opportunities

Leadership development is not integrated with performance management and rewards and recognition, significant source of turnover

Within Workforce Movements, flexible work arrangements are managed on a exception basis without any consistency

Integration across recruitment functions has the opportunity to yield higher candidate acceptance rates—leveraging scale

Communication efforts can better link rewards and recognition to the performance management process, they are consistent just not formally recognized as integrated

Diagnostic Dashboard – Summary Organizational Learning Knowledge Retention Workforce Movement Rewards & Recognition Performance Management Infrastructure Results and Measures Overall Cross Linkages and Integration Program Details Program Objectives

There are numerous ways in which the data can be summarized in the Diagnostic Dashboard, such as to provide a view by:

Critical Workforce Segment

Business Unit

Region

Prioritization Roadmap – Sample Prioritization Timing 1-3 months 3 to 6 months 6 to 12 months 12 to 24 months Develop consistent workforce transition process Develop linkages to performance management processes Extract information for succession planning purposes

Activity 1

Activity 2

Activity 3

Implementation of new, integrated performance management system Develop succession management metrics

Activity 1

Activity 2

Activity 3

Activity 1

Activity 2

Activity 3

Activity 1

Activity 2

Activity 3

Implementation of succession management system Higher Lower

Activity 1

Activity 2

Activity 3

Activity 1

Activity 2

Activity 3

Talent Strategies Exercise

Talent Strategies for OPP

What to do…

Review the Chafetz executive diagnostic interview summary

Considering the business issues and critical workforce segments identified by OPP leadership, how can we implement the Develop-Deploy-Connect components of a talent management strategy in our practice?

Work with your group to assess the effectiveness of our human capital programs and to identify opportunities for improvement. Be prepared to present to the group your observations, assessment and recommendations / action plan in an organized fashion (e.g. SWOT Analysis, etc.)

When to do it…

Work on the issue: 45 minutes

Report out: 45 minutes

Talent Strategies Contacts

OPP U.S. Contacts

Alice Kwan : [email_address] +1 (212) 618 4504

Tina Witney :

[email_address]

+1 (212) 618 4677

Ken Kunkleman :

[email_address]

+1 (614) 228 4270

Michael Boedewig : [email_address] +1 (215) 246 2587

Other O&PP practitioners with significant Talent Strategies involvement: Adrienne Bigley, Jennifer Hand, Pete Harteveld, Michael Kauer, Audrey Mes, Simon Porter, Anne Vlach