One Page
Talent Management : ™
Building Better Talent, Faster
Marc Effron
VP, Talent Management
Avon Products

What a Great Time to Be in Talent!
companies have
Our
huge
talent challenges

Old and Older

The Talent’s in Charge

Buy Buy Talent

Mukesh Grows Talent Faster

They Still Don’t Get It

There’s More Where He Came From

They Don’t Like Us

They Don’t Think We Can Deliver
Deloitte’s Aligned at the
Top study says:
“ there’s an increasing
tension between
company needs and
HR's ability to deliver ”

They Doubt Our Capabilities
BCG’s The Future of HR
in Europe says:
“ HR executives face a
credibility gap when it
comes to executing
basic HR duties”

They Challenge Our Knowledge
McKinsey says:
“The executives criticized
HR professionals for lacking
business knowledge,
observing that many of them
worked in a narrow
administrative way rather
than addressing long term
issues such as talent
strategy and workforce
planning.”

They Mock our Entire Profession
“After 20 years of hopeful rhetoric
about having a \"seat at the table\",
most HR professionals . . . have no
seat, and the table is locked inside
a conference room to which they
have no key.”

Even You Rate Your Performance Low
How satisfied are you with your
organization’s performance in:
Filling critical roles with external talent . . 52%
Filling critical roles with internal talent . . .45%
Workforce engagement levels . . . . . . . . .49%
Enough hi po’s to meet future needs . . . .23%

A Little Table Discussion
Which are your top two talent Are the reports of HR’s
challenges and why? incompetence true?
Old and Older If so, what’s your best
suggestion to improve our
The Talent’s in Charge
profession?
Buy Buy Talent
Mukesh Grows Talent Faster
They Still Don’t Get It
More Where He Came From
10 minutes of discussion with a “lightening round” report out

So . . .
Why are we doing the
same things
in the same ways
More importantly,
and expecting different
how can we really
results?
build better talent
faster?

About Avon
The world's largest direct seller of beauty and related
products
$10 billion+ in annual revenues
41,000 employees
6 million independent sales Representatives in more
than 100 countries
75% of revenue is from outside the U.S.,
with a focus on developing and emerging markets

Five Years of Double-Digit Growth
Revenue (US$B) Operating Profit (US$B)
CAGR 25%
CAGR 10%
$8.7
$1.2
$8.2
$7.7 $1.1
$6.8 $1.0
$6.0 $6.2 $0.9
$5.7
$0.8 $0.8
$5.3
$0.7
$0.5
1999 2000 2001 2002 2003 2004 2005 2006 1999 2000 2001 2002 2003 2004 2005 2006

Our Stock Price was Falling

So we had some work to do . . .
Fundamental restructuring began November 2005
Changed the structure
Flattened the organization (15 layers of management to 8)
Moved from a regional to a matrix structure
Changed processes: Made Brand Marketing, Supply Chain, Sales
and IT into horizontal organizations
Reduced Comp. Expenses: Eliminated ~25% of VPs and Directors,
~20% of Managers; ~4,000 employees
Changed talent: Bought new executive talent and reassigned others

A New Line-Up
All but three executive team positions had new incumbents;
40% were hired externally
CEO
CFO HR Mktg. Strategy Sales Comm. Legal CEE
Supply
NA LATAM APAC China
WEMEA
Chain
Key
New
New Hire
Incumbent

Let’s Start with What We Know
1. The behavioral science is sound
2. Talent processes work if implemented
3. Line managers are rational

So If We Tried . . .
Starting with the Science: Use the core behavioral
science as the foundation for our talent practices
Eliminating Complexity: Redesign our processes to
be simple to use and understand, including just the
critical elements
Adding Real Value: Provide line managers with pre-
made solutions – the “cake mix” approach
. . . we’d find ourselves with . . .

One Page Talent Management
One Page Talent Management radically challenges
conventional TM thinking. It’s driven by the belief that:
Our practices are academically correct but practically
deficient
Only execution delivers value
Two things matter (maybe three) in each practice
We have added complexity without adding value
Our reputation is where it belongs

Complexity vs. Value
Stop
Caution
Value Added
Continue
Effort /Complexity
Added

Three Actions
1. Identify the core business objective
2. Build the simplest path to get there
3. Add value – “cake mix” – for managers

OPTM is Not a Design Gimmick
It’s how we can achieve
the true potential of
talent management

Performance Management
The Science
Expectancy theory says employees are motivated
when more effort equals more rewards
So why have . . .
Individual goal 10 different Individual goal
ratings objectives weights
Competency-based Fancy goal labels
assessments

Performance Management
Business Objective: Employees understand their goals;
they’re fairly evaluated at year end
Maximize value/minimize effort
Deleted weightings, goal ratings, goal labels,
competency ratings
Emphasized behaviors needed to achieve goals
Four goals maximum
Simpler design means fewer instructions

Performance Management
Performance Management Plan -- 2008
Associate Manager Guidelines
Focus on Name: Name:
Location: • Keep it simple • Ensure understanding
essential info HR Generalist
Title:
• Focus • Keep the conversation alive
Dept: Name:
1 Describe the Associate’s performance goals for the year (in order of priority)
• What is the goal?
A. Goal Metric
• How will you Results
measure results?
B. Goal Metric
• Was it achieved?
Results
Maintain Balance C. Goal Metric
of “What/How” Results
• Behaviors critical to
D. Goal Metric
achieve these goals
Results
Reduce Describe the two behaviors that are most critical to achieve the goals listed above. Please use the Focused Leadership Edge competencies
2 (attached) or others (see the “How To” page). In the lower half of the box, describe how the Associate will develop these behaviors.
e
unnecessary info A. B.
• Rating: 1 – 5 with no
labels, weighting or Comments
Summary Rating
3
needless complexity
Signature & Date “We have agreed to these objectives” At goal setting “A performance evaluation was conducted”
4 At year
-end review
Matrix
Matrix
Associate Associate Manager OK?
Manager OK?
Manager Manager

Associate Engagement
The Science
Higher engagement leads to more employee
discretionary effort that benefits the firm
So why do we see . . .
Questionnaires with 120 questions?
Little focus on making follow up easy?
No individual accountability for improving results?

Associate Engagement
Business Objective: Take the “right” actions to
increase engagement
Minimize Complexity
45 questions
Practical, so easy to act on results
Add Value
Proprietary algorithm gives managers customized
analysis and recommendations
No additional survey analysis required for a
manager to take action

Associate Engagement
Focus on
essential info
• What was our
improvement goal?
• How did my group score?
• How did Avon score?
Add unique
insights/guidance
• The relative power of
engagement
dimensions at Avon
• The specific items that
the group should act
on to increase
engagement
© New Talent Management Network

The 360
The Science
Leaders who focus on developing employees increase
job satisfaction and reduce employees’ intent to leave
So why do we see . . .
Meaningless scales (I’m a 3 out of 5?)
50, 60, 70 questions?
Long and confusing 360 reports?

The 360
Business Objective: Leaders behave consistently with
the Avon model
Eliminate Complexity
Minimum number of questions (30)
Unique scale – “Do much more” to “Do much less” –
instantly prioritizes development actions
Add Value
One page report with three priorities
Feedforward “Stop, Start or Continue” for each priority

The 360
Unique Scale
• What should change,
not are you proficient
Clear Priorities
• Focused on top three
areas for change

The 360
• A one-page
summary of your
development
priorities
and . . .
• Specific start, stop
or continue
suggestions for
each of the 3 key
questions

The 360
• A one-page
summary of your
development
priorities
and . . .
• Specific start, stop
or continue
suggestions for
each of the 3 key
questions

Making it Work
Simplicity
Transparency
Accountability

Making it Work
Simplicity
Transparency
Accountability

Making it Work
Engagement: Annual improvement
required for VPs, GMs with scores < 80
Accountability
Perf. Mgmt: “Time bomb”
communication allows Associates to
hold managers accountable
Performance and Potential: Both are
communicated to Associates
Transparency
360: Shared with any leader in involved
in their development; considered in
talent reviews

Table Talk
Accountability: Who at your table has the best example
of how to hold leaders accountable to develop talent?
Transparency: Who at your table has the best example
of being transparent with Associates?
10 minutes of discussion with a “lightening round” report out

So Does it Work??
Engagement was up 7% from 2006 – 2008
A few quantitative metrics
Manager provides timely and helpful feedback: + 17%
Manager plans for my professional development: + 9%
Manager clearly communicates performance goals: + 5%
A few qualitative metrics
Line managers saying “thank you for new perf. mgmt. process” (!)
Positive comments from the senior team
Talent review discussions more fact-based, more decisive

And it Keeps Getting Better . . .
OPTM has a multiplier effect!
Less time spent designing processes
Less (or no) money is spent on consultants (sorry!)
Line managers recover 10 – 40 hours of time each year
HR “earns the right” to do more

So Something Doesn’t Add Up . . .
If “simple” works, why are talent processes so complex?
If we know how to grow leaders, why do few companies
excel?
If we’re that good at what we do, why doesn’t anyone
else think so?

Talent Pool or Talent Puddle
It’s time for a moment of humility
“There are only 8 people in this field who are any good”
Our ability to execute won’t improve until the quality of
talent management practitioners improve. We must:
Simplify Our Work
• Radically Simplify Our Process/Practices
• Add Value to Every Process
Elevate Practitioner Quality
• Know the Business
• Love Business
• Adopt a Production Mindset

In Closing . . . .
Simple works – the facts prove it
Make it happen – you own talent
Raise our talent bar – become the new HR
For this presentation and others + free articles, go to
www.marceffron.com
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