Reassess Your Talent Management Strategy - Knowledge Infusion (May 2009)

Knowledge Infusion Optimize Series May 14, 2009

Part Two Reassess Your Talent Management Strategy

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

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

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

Why Have a Talent Management Strategy In a Down Economy

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

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

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

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

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 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

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

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

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

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

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

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

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

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

Prioritize Critical Talent Segments

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

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

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

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

Upgrade Your Talent Pools and Enhance Mobility

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

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

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

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

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

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

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

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

Thank You

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Reassess Your Talent Management Strategy - Knowledge Infusion (May 2009)

by Jason Corsello on May 18, 2009

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Reassess Your Talent Management Strategy - Knowledge Infusion (May 2009) — Presentation Transcript