Knowledge Infusion
 Optimize Series
    May 14, 2009
Today’s Presenters




                                        Heidi Spirgi                   Suzanne Rumsey
             ...
Part Two
Reassess Your Talent Management
           Strategy
Agenda

     • Overview of Knowledge Infusion
     • The Importance of a Talent Management Strategy in a Down
       Econo...
About Knowledge Infusion

         • Leader in human capital                                                    Knowledge
...
Strategic Advisors Throughout Your Journey




Knowledge Infusion Proprietary and Confidential, Copyright 2009   7
Customers




Knowledge Infusion Proprietary and Confidential, Copyright 2009               8
Continue to Advance




Knowledge Infusion Proprietary and Confidential, Copyright 2009   9
Why Action NOW is So Key

     • Significant progress made in past 5 years
            • Talent Management adolescence
   ...
Why Have a Talent Management
 Strategy In a Down Economy
Polling Question




Knowledge Infusion Proprietary and Confidential, Copyright 2009          12
Talent Management Recognized as Competitive Tool




Knowledge Infusion Proprietary and Confidential, Copyright 2009   13
Polling Question




Knowledge Infusion Proprietary and Confidential, Copyright 2009          14
War for Talent Continues

     The ―War for Talent‖ has not gone away in the down economy.




                           ...
Current Talent Realities

            Even during these turbulent times, investment in talent
                            ...
Definition of Talent Management




                                                The management of the
                ...
Talent Management Strategy Fills in the White Space


               Insight into Talent                                  ...
Recalibrate Your Talent
Management Strategy: Focus on
   Retention & Productivity
Current State

  • Talent management strategies created when economy was
    flush have been shelved as too expensive to i...
Number of layoffs since
                                  Nov. 1, 2008, at America's
                                     ...
Top Talent Is Ripe for Cherry Picking!


    How Top Talent Is Dealing with Tough Times on Wall Street…
    • Loyalty
    ...
Focus on Retention
        With the abundance of talent on the market - and fewer opportunities available - it’s easy for ...
Productivity: Need to Turn it Around

           In Q1 2009, business productivity (output per employee
           hour) g...
The “Jobless Recovery”


                                                                   A jobless recovery or jobless ...
Productivity Drivers

     • Focus on employees who stay with the organization

     • Clearly articulate company directio...
What You Can Do Now

     • Prioritize and assess talent management processes that
       enable retention, increase produ...
Case Study – Manufacturer and Retailer

     • 5% reduction in force
     • Manual, silo’d talent management business proc...
Prioritize Critical
Talent Segments
Keeping Critical Roles Filled with Top Talent

 • Profile the role
 • Assess current incumbents against the success       ...
Sample Talent Segmentation Matrix




                                                          Strategic             Crit...
Define Criteria for a Critical Role

           • Creates value for the organization
                  • Increases revenue...
What You Can Do Now

     • Establish strong relationship with strategic planning team
     • Identify roles absolutely cr...
Case Study – Global Financial Services Organization

     • Transforming from loose international to globally led
       o...
Upgrade Your Talent Pools and
      Enhance Mobility
Current State

     • Internal talent pools neither proactively identified nor well-
       developed

     • Development ...
Know What You Have

     • Proactive downsizing

     • Understand your talent pool to make fast, smart decisions
        ...
Polling Question




Knowledge Infusion Proprietary and Confidential, Copyright 2009          38
Up-skill Your Workforce
                                                                          Opportunity to Poach
   ...
What You Can Do Now

     • Focus on building talent pools for critical roles

     • Build a ―talent factory‖ culture
   ...
Case Study – Large Global Retailer

     • Business growth outside the US
     • Organizational culture a competitive adva...
Actions to Advance
     • Recalibrate talent management strategy:
       Focus on retention and productivity
            •...
Service Offerings to Meet Your Needs and Budget



                                                                       ...
Continue the Conversation

     • Download the presentation on the Center of Excellence
       www.knowledgeinfusion.com/c...
Talent Management Forum




Knowledge Infusion Proprietary and Confidential, Copyright 2009   45
Thank You
Reassess Your Talent Management Strategy - Knowledge Infusion (May 2009)
Reassess Your Talent Management Strategy - Knowledge Infusion (May 2009)
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Reassess Your Talent Management Strategy - Knowledge Infusion (May 2009)

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  • Critical RoleSignificant downside if not filled with right talentSignificant upside (opportunity) if filled with right talent (creates value)Necessary RoleSignificant downside if not continuously filled with talentNo upside if filled with the best talent (sustains value)Organization ensures necessary jobs are filled, but may not invest as much to do soStrategic RoleDifferentiates in the marketplaceSignificant long-term loss if not filled and developedNo short term loss if not filled effectivelyCommodity RoleNo significant short or long-term pain if not filled effectivelyTypical HR Levers: first targets for rif, just in time hiring, outsourcing
  • Choose the best leader for the job if you want your company to attain financial success. That sounds easy enough, and it's commonly understood in the corporate world. However, many companies aren't practicing what the Hackett Group, a strategic advisory firm, calls \"talent management.\" In a new study, the firm reports that among the 500 largest public companies in the U.S., the average company could expect 15% higher earnings, or $400 million annually, if it did.In its analysis of companies' recruitment processes, the Hackett Group enumerates the performance benefits of fostering an internal talent pool and ultimately defines talent management as \"the core process by which organizations identify talent needs and acquire, develop, manage and measure talent.\"According to the Hackett Group's report, companies that practiced talent management generated EBITDA (earnings before interest, taxes, depreciation and amortization) of 16.2%, versus 14.1% for typical companies. This gap increased EBITDA of the largest public companies by an average of $399 million annually. On average, top performers also generated $247 million annually on a 22% improvement in net profit margin; $992 million annually through a 49% gain in return on assets; and $340 million annually on a 27% increase in return on equity.The results also showed that talent management's top performers spent 6% less on human resources costs versus their peers. That's $1,885 per employee, versus $2,014. Top performers also spent 36% less on staffing and 28% more on technology. They also filled 26% more jobs internally compared with their peers.The report's authors, Stephen Joyce, Jean Herreman and Kel Kelly, all senior business advisers at the Hackett Group, say it makes sense that increased earnings and quality management practices go hand-in-hand. Their research shows that top performers surpass the average company and the largest-cap public companies in the U.S. on the following four measures of financial performance: EBITDA, net profit margin, return on assets and return on equity. \"While we are not suggesting that companies should stop everything else they are doing and focus exclusively on talent management,\" the report says, \"we do believe that extraordinary talent management, in an otherwise well-run organization, will enhance financial results over the mid to longer term.\"To conduct the study, the Hackett Group began with three basic assumptions: that it could define talent management; that it could use its Hackett Value Grid methodology to identify companies that are world-class in talent management; and that it could assess companies' financial performance relative to the 500 largest public companies in the U.S.The group chose the \"top performers\" for the study using a talent management value grid. They took those companies and compared them with other top performers and peers in Standard & Poor's Compustat database from 2003 to 2005.
  • Investment in high performers and high potentials is critical even in this economyRisk of loss of top talent should be at the top of the agenda for the executive committee and senior leadersWhile the market will be rich with qualified candidates, Key can’t afford to lose critical talentKey can also not afford to make mistakes in downsizing decisionsLeaders recognize that previous downsizing efforts have stripped the fatIf we cut further into muscle, we run the risk limiting our ability to succeed as the market recovers
  • Wall street is not the only sector impacted by the financial crisisEffects are broad reaching and impact all sectorsLoyalty and flight risks are being felt widely across the talent marketKey people are starting to lose faith – Engagement is dipping – Our loyalty is starting to dipThis will create opportunities for Key to recruit talent from Wall StreetHowever, recruiting plans must be in place to ensure Key can find the right talent in a sea of available people.Conversely, Key may lose a few top performers and leaders to poaching and bigger jobs elsewhereKey must work NOW to protect high performers and top talent to ensure the right talent is in place to get through this turbulent time
  • Across traditional and alternative asset managers, those that are opportunistic about training individuals for succession and mobility will retain staff and reap the greatest benefit from a broader skill setThey will also develop skills in response to the existing challenges in financial services.Given the current issues, many alternative asset firms are now focusing training on portfolio and risk monitoring for investment professionals at all levels of the organizationFor larger firms, the training and development that will support workforce plans may shift toward middle and junior level staff, with the top of the house distracted by mounting business pressuresFirms that see the opportunities in the current talent market – and overcome the obstacles – will weather today’s economic storm more successfully
  • Reassess Your Talent Management Strategy - Knowledge Infusion (May 2009)

    1. 1. Knowledge Infusion Optimize Series May 14, 2009
    2. 2. Today’s Presenters Heidi Spirgi Suzanne Rumsey President Principal Consultant Knowledge Infusion Proprietary and Confidential, Copyright 2009 3
    3. 3. Part Two Reassess Your Talent Management Strategy
    4. 4. Agenda • Overview of Knowledge Infusion • The Importance of a Talent Management Strategy in a Down Economy • Reevaluate Importance to Talent to Business Strategy • Recalibrate Your Talent Strategy: Focus on Retention and Productivity • Prioritize Critical Talent Segments • Upgrade Your Talent Pools and Enhance Mobility • Knowledge Infusion Optimization Services Knowledge Infusion Proprietary and Confidential, Copyright 2009 5
    5. 5. 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 6
    6. 6. Strategic Advisors Throughout Your Journey Knowledge Infusion Proprietary and Confidential, Copyright 2009 7
    7. 7. Customers Knowledge Infusion Proprietary and Confidential, Copyright 2009 8
    8. 8. Continue to Advance Knowledge Infusion Proprietary and Confidential, Copyright 2009 9
    9. 9. Why Action NOW is So Key • Significant progress made in past 5 years • Talent Management adolescence • Talent Intelligence infancy • Social Collaboration infancy • New technology paradigms • SaaS, Cloud Computing, Social Software • HR profession in massive transition • Skills • Experience • Education • Measurement Knowledge Infusion Proprietary and Confidential, Copyright 2009 10
    10. 10. Why Have a Talent Management Strategy In a Down Economy
    11. 11. Polling Question Knowledge Infusion Proprietary and Confidential, Copyright 2009 12
    12. 12. Talent Management Recognized as Competitive Tool Knowledge Infusion Proprietary and Confidential, Copyright 2009 13
    13. 13. Polling Question Knowledge Infusion Proprietary and Confidential, Copyright 2009 14
    14. 14. War for Talent Continues The ―War for Talent‖ has not gone away in the down economy. It’s just gone guerilla! Source: http://www.tropicthunder.com/home.html?deepLink=dvd Knowledge Infusion Proprietary and Confidential, Copyright 2009 15
    15. 15. 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 16
    16. 16. Definition of Talent Management The management of the supply, demand and productivity of talent to achieve optimal business performance and in direct alignment with organizational goals. Knowledge Infusion Proprietary and Confidential, Copyright 2009 17
    17. 17. Talent Management Strategy Fills in the White Space Insight into Talent Develop Key Talent Manage Critical Roles Manage the Bench Optimize Deployment Mobilize Talent Retain & Engage Develop Talent Pipeline Talent Management Strategy Compensation Management Management Performance Succession Acquisition Planning Planning Learning Career Talent Knowledge Infusion Proprietary and Confidential, Copyright 2009 18
    18. 18. Recalibrate Your Talent Management Strategy: Focus on Retention & Productivity
    19. 19. Current State • Talent management strategies created when economy was flush have been shelved as too expensive to implement • Focus on acquiring best talent from external market and retaining it • Hiring freezes and layoffs • HR budgets for talent management programs cut • Focus on retention of high performing talent in critical roles • Need all employees to be more productive, do more with less Knowledge Infusion Proprietary and Confidential, Copyright 2009 20
    20. 20. Number of layoffs since Nov. 1, 2008, at America's 500 largest public companies*: 558,087 *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 May 7, 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 21
    21. 21. 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 • The number who trust their company is down 41% Retention of Top Talent • Top Talent Flight Risk “If you have strategic advisory skills, • In the wake of mass layoffs troubled firms are finding that many strong business acumen and a quot;survivorsquot; look elsewhere depth of functional expertise, you • 64% are considering leaving are in high demand, even in today’s • 24% are actively looking for a job turbulent times.” • Precisely the wrong talent (top performers w/ other options) are heading for the door - Sally Fisher, Deloitte Consulting • Top Female Talent • 84% of women in this study are considering leaving—compared to 40% of men • quot;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.quot; Source: BusinessWeek, How Top Talent is Dealing with Tough Times on Wall Street, October 3, 2008 Knowledge Infusion Proprietary and Confidential, Copyright 2009 22
    22. 22. 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 23
    23. 23. Productivity: Need to Turn it Around In Q1 2009, business productivity (output per employee hour) grew by 1.1%, BUT only because employee hours declined more than output • Both output and employee hours declined from Q4 2008 by 7.8% and 8.8%, respectively • From Q3 to Q4 2008, worker productivity (output per employee hour) in the nonfinancial corporate sector declined by 3.9%. Source: US Bureau of Labor Statistics, Economic News Release 5/7/09, http://www.bls.gov/news.release/prod2.nr0.htm Knowledge Infusion Proprietary and Confidential, Copyright 2009 24
    24. 24. 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 25
    25. 25. Productivity Drivers • Focus on employees who stay with the organization • Clearly articulate company direction and objectives • Clearly articulate how employees align and contribute value, and reinforce often • Provide opportunities and tools to support knowledge creation, sharing and capture • Remove barriers to getting the job done – identify unnecessary process steps, outdated policies, etc. • Recognize work well done Knowledge Infusion Proprietary and Confidential, Copyright 2009 26
    26. 26. What You Can Do Now • Prioritize and assess talent management processes that enable retention, increase productivity • Rank target processes for transformation • Eliminate processes that hinder productivity • Better utilize talent management technology already own • Understand what free technologies may be available • Develop new processes to: • Leverage untapped existing functionality to enhance productivity • Identify offline change Knowledge Infusion Proprietary and Confidential, Copyright 2009 27
    27. 27. Case Study – Manufacturer and Retailer • 5% reduction in force • Manual, silo’d talent management business processes • Lack of consensus on definition and value of talent management • HR perceived as non-responsive to the business Knowledge Infusion Services Customer Outcome • Talent Management Exec. Education • Integrated business-led TM strategy • Talent Management StrategyMap • Executive Talent Council • Talent Management Best Practices • TM Process and Tech Council Workshop • New HR Org Structure • Talent Intelligence Workshop • Approved Business Case for TM Suite • Governance • Integrated HR response to economic downturn Knowledge Infusion Proprietary and Confidential, Copyright 2009 28
    28. 28. Prioritize Critical Talent Segments
    29. 29. 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 30
    30. 30. Sample Talent Segmentation Matrix Strategic Critical Strategic Value Role role Commodity Necessary role role Operational Value Knowledge Infusion Proprietary and Confidential, Copyright 2009 31
    31. 31. Define Criteria for a Critical Role • Creates value for the organization • Increases revenues or • Reduces costs • Creates competitive advantage / differentiates company in the market • Produces ―moments of truth‖ for customers • Has autonomy in decision making • High opportunity cost to not having role at all • High cost to having wrong talent in role • Hard to fill • Specialized knowledge • Reducing performance variability of those in role leads to increased value for organization Knowledge Infusion Proprietary and Confidential, Copyright 2009 32
    32. 32. What You Can Do Now • Establish strong relationship with strategic planning team • Identify roles absolutely critical to sustain the business today and grow it tomorrow • Identify sources of talent to keep critical roles filled • Leverage current talent management / HR systems to gather, filter and model data on talent pools feeding critical roles • Develop new processes to: • Inventory talent • Identify knowledge, skills and competencies for critical roles • Develop and grow talent pool Knowledge Infusion Proprietary and Confidential, Copyright 2009 33
    33. 33. Case Study – Global Financial Services Organization • Transforming from loose international to globally led organization • Manual talent management processes • 8% layoffs over past 6 months • Inconsistent and unstructured approach to managing key roles Knowledge Infusion Services Customer Outcome • Talent Management StrategyMap • Redeployed recruiters to develop • Talent Management Rapid Solution talent plans for each business unit Selection • New role of talent consultants • Governance • Identified critical roles at all levels of the organization • Selected talent management suite Knowledge Infusion Proprietary and Confidential, Copyright 2009 34
    34. 34. Upgrade Your Talent Pools and Enhance Mobility
    35. 35. Current State • Internal talent pools neither proactively identified nor well- developed • Development programs created in silos and/or focused solely on leadership levels • Lack of common language to describe talent hinders mobility • Everyone believes they are unique in the organization • No central ownership of the processes in an organization Knowledge Infusion Proprietary and Confidential, Copyright 2009 36
    36. 36. Know What You Have • Proactive downsizing • Understand your talent pool to make fast, smart decisions • HIPOs, Leaders, Top Performers, Critical Roles • Gain insight into the talent who will enable survival An Increased Focus on Talent Mgmt … • Prepare to redeploy top talent • Relocation quot;In turbulent times more than any • Flight Risk other, there is not only the • Skill/Competencies opportunity, but the need for HR to • Interests provide leadership to the business. The ability to attract and retain • Enable an enterprise view of talent workers when times are tough really requires leaders to be at their best.” • Executive mandate to re-mobilize talent Dave Gartenberg, HR director at Microsoft UK Knowledge Infusion Proprietary and Confidential, Copyright 2009 37
    37. 37. Polling Question Knowledge Infusion Proprietary and Confidential, Copyright 2009 38
    38. 38. Up-skill Your Workforce Opportunity to Poach • Watch your competitors Competitor’s Talent • Watch your local market Settled loyalists (about 30% of workers) are happy where they are and hard to displace. • Identify companies with talent that Poised Loyalists (about 11% of you need workers) are happy but could be enticed to move. Poised Opportunists (about • Re-deploy recruiters to targeted 59% of workers) are actively strategies/markets/companies looking. They've posted their resumes, will apply for your job, and are amenable to job offers. • Target candidates with new Source: Finding Keepers (new book released by Monster in Jan marketing strategies 2008) Knowledge Infusion Proprietary and Confidential, Copyright 2009 39
    39. 39. What You Can Do Now • Focus on building talent pools for critical roles • Build a ―talent factory‖ culture • Standardize talent review processes, criteria, language • Measure and reward managers for talent development and loss of talent to other parts of the organization • Evangelize value of lateral movement • Market jobs/experiences/opportunities • Design development programs that emphasize on-the -job and social learning • Ensure business leaders understand value of talent mobility Knowledge Infusion Proprietary and Confidential, Copyright 2009 40
    40. 40. Case Study – Large Global Retailer • Business growth outside the US • Organizational culture a competitive advantage • Multiple talent review processes • Lines of business unable to share talent Knowledge Infusion Services Customer Outcome • Talent Management Best Practices • Standardized processes to assess talent Workshop • Talent inventory process to capture • Talent Management StrategyMap essential talent data • Business Process Transformation and • Recognition that mobility across Design Workshops businesses and geographies should be key talent strategy Knowledge Infusion Proprietary and Confidential, Copyright 2009 41
    41. 41. Actions to Advance • Recalibrate talent management strategy: Focus on retention and productivity • Improve today’s employee experience • Focus on productivity drivers • Prioritize critical talent segments • Strategize to keep top talent in critical roles • Segment roles • Identify critical roles • Upgrade talent pools and enhance mobility • Know what you have • Upskill workforce • Build ―talent factory‖ culture Knowledge Infusion Proprietary and Confidential, Copyright 2009 42
    42. 42. Service Offerings to Meet Your Needs and Budget Project Engagement Assessment and Optimization Workshops Consulting Knowledge Infusion Services On Demand Define or Refine Strategies Related to: Center of •Talent Management Best Practices Excellence •Business Process Maturity and Design •Technology Assessment and Planning •Technology Architecture •Process and Technology Deployment Knowledge Infusion Proprietary and Confidential, Copyright 2009 43
    43. 43. Continue the Conversation • Download the presentation on the Center of Excellence www.knowledgeinfusion.com/coe 1) log-in or register 2) go to Talent Management Forum Knowledge Infusion Proprietary and Confidential, Copyright 2009 44
    44. 44. Talent Management Forum Knowledge Infusion Proprietary and Confidential, Copyright 2009 45
    45. 45. Thank You

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