Integrating Testing Into Your Talent Strategy: Leveraging Testing in a Down Economy

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Some thoughts on taking advantage of the current employment market.

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Integrating Testing Into Your Talent Strategy: Leveraging Testing in a Down Economy

  1. 1. DDI Canada Webinar Series Part I: Leveraging Testing Tools in a Down Economy July 9th, 2009 1 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  2. 2. Packard’s Law: No company can grow revenues consistently faster than its ability to get enough of the right people to implement that growth and still become a great company. 2 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  3. 3. Today’s Speaker Ryan Heinl, Senior Consultant DDI Canada Toronto, Ontario Office Talent Management Execution • Hiring and Promoting the Best • Developing Leaders • Succession Management 3 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  4. 4. Agenda and Purpose • The Opportunity • The Business Case • The Tools • What to Expect/Not Expect • Summary • Next Webinar 4 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  5. 5. The Opportunity 5 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  6. 6. The Opportunity: New Realities of Business Normal • More candidates than jobs • Average turnover as low as 1.6% • Cost pressure • Reductions/freezes are prevalent • Acknowledgement of Talent as Critical 6 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  7. 7. The Opportunity: Focused Hiring Rules the Day • Key positions? • Replacement hiring • Hiring in areas with growth • Invest in the long term 7 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  8. 8. The Opportunity: The Candidates • More of them • More aggressive • More variety • % of talent is the same 8 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  9. 9. The Opportunity: Your Competitors 30% 9 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  10. 10. The Business Case 10 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  11. 11. Selection trumps development 20% development 80% selection 11 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  12. 12. The Business Case… The 3 Hiring ‘Profit’ Factors 1. Hiring Process 2. Ramp-Up 3. Productivity Costs are triggered by • Growth • Turnover 12 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  13. 13. Sizing Up the Opportunity Average sales consultant 1 yr goal $1 million Time to Productivity • 9 months X $83,000 = $750,000 • Reduce to 5 months = Cost savings $335,000 Productivity Level • High performing sales consultant = $1.4 million • 10 more than last year = $4 million How do we do this? 13 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  14. 14. What if you had a testing tool that did this? • Top as Compared to Low SII Scorers: – Total Sales Revenue 48% Higher – Sales Goal Achievement 15% to 29% Higher – Gross Production 28% Higher – Closed 18% to 22% more New Sales – 42% Lower Turnover Rate (18% vs. 31%) – Made 21% more Sales Calls – Customer Satisfaction Rates 8% Higher – Met 8% More of their Deadlines 14 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  15. 15. The Tools 15 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  16. 16. Screening vs. Testing Screening Testing • Short and basic • More in depth • Focused on experiences • Level of capability evaluation • Technical knowledge • Comparison to other • Minimum requirements candidates • No comparison to other • Expected relationship between candidates test score and performance Depth of Evaluation and Certainty of Decision SCREEN TEST INTERVIEW WORK ASSESSMENT SAMPLE CENTER 16 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  17. 17. Everyone’s Question What’s the best test? 17 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  18. 18. Know What You Are Measuring AND the Best Tool for It What people know What people can do Technical and/or A cluster of behaviors professional performed on a job information needed to successfully perform job activities What people have done Who people are Educational and work Personal dispositions achievements needed and motivations that to successfully relate to job perform job activities satisfaction, job success or failure 18 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  19. 19. What Do they Have in Common? 19 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  20. 20. Selection Funnel: Test Earlier than Later 20 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  21. 21. Design System: Screening and Testing Team Customer Sales Professional Leader Member Service Sales Production Service Professional Leaders Sales Insight Team Member Customer Professional Leadership Inventory Career Battery Service Career Career Battery Insight Inventory Battery Sales Career High Fidelity Leader Career Battery Production Battery Simulation Sales Leadership Readiness Readiness Assessment Assessment Technical testing including computer skills, accounting knowledge, technology knowledge, typing, reading and writing ability (over 800 technical testing options) 21 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  22. 22. SII Measurement and Prediction SII Measurement What is Predicted? What Is Measured? Areas Sales Skills • Devising Sales Approaches and Sales Situational Judgment Sales Judgment Consultative Sales Judgment Solutions • Expanding & Exploring Opportunities (Thinking and Reasoning) Sales Ability/Persuasiveness • Assignment Management • Active Learning Retains Focus • Compelling Communication Sales Disposition Drives Toward Success • Sustaining Customer Satisfaction (Personality) Engages People • Sales Disposition • Demonstrating Business Value Sustains Positive Outlook Shows Discipline Takes a Creative Approach Demonstrated Initiative •Building Trusting Relationships Effective Approaches •Demonstrating Business Value Consultative Approach (Past Experience) •Compelling Communication 22 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  23. 23. Keep It Simple 23 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  24. 24. Keep It Simple 24 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  25. 25. Keep It Simple 25 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  26. 26. Keep It Simple 26 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  27. 27. Simple, Valued, Report 27 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  28. 28. SII Predicted Outcomes Motivation Ability Interpersonal Bottom Line • Adaptability • Learning Ability • Building Customer • Quota Achievement • Initiative • Sales Approaches Loyalty • Prospecting • Integrity • Supporting Sale • Building networks • Account Expansion Implementation • Compelling • High Standards • Sales Activity Communication • Sales Disposition • Customer Sat • Sales Call • Stress Tolerance Facilitation 28 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  29. 29. Build Your Bench Hire/Select for the Future LII Measurement What Is Measured? What is Predicted? Areas • Devising Sales Approaches and Leadership Situation Judgment Leadership Judgment Coaching Judgment Solutions • Expanding & Exploring Opportunities (Thinking and Reasoning) Delegation Judgment • Assignment Management • Active Learning Drives toward success • Compelling Communication Leadership Disposition Engages people • Sustaining Customer Satisfaction (Personality) Inspires confidence • Sales Disposition • Demonstrating Business Value Learning agility Shows discipline Sustains a positive outlook Coaching experience •Building Trusting Relationships Effective Approaches Past demonstrated initiative •Demonstrating Business Value (Past Experience) Past demonstrated leadership •Compelling Communication 29 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  30. 30. Build Your Bench Hire/Select for the Future 50 times 24 times 30 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  31. 31. Quality of Hire Balanced Scorecard – Pivotal Roles Average Time to Hire Reduction Average Time to Productivity 7% 35.00 6% 30.00 5% 25.00 20.00 4% 15.00 3% 10.00 2% 5.00 1% 0.00 0% march april may june july march april may june july Productivity Levels Turnover - First Six Months 6 25% 5 20% 4 Attendance Safety Incidents 15% Actual 3 Defect Rates 10% Target 2 Production Rate 1 5% 0 0% march april may june july march april may june 31 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  32. 32. What you should and should not expect from tests 32 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  33. 33. Shine As Many Lights As You Can 33 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  34. 34. You Should Expect • Efficiency • Consistency • Diversity and Fairness • Quality of Interviews • Time to Hire • Wasted Interview Time 34 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  35. 35. You Should Expect • Integration with other steps • Identification of MORE HiPos • Measurement of less developables • Faster ramp up times • Higher than average performance 35 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  36. 36. You Should NOT Expect • The perfect assessment • In depth feedback for development • Deep understanding of strengths and weaknesses • Sudden improvements in test performance • Test customization • Regulation of test vendors • To set it and forget it 36 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  37. 37. Summary & Next Webinar in Series 37 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.
  38. 38. Summary and Next • Great competitive opportunity NOW • Tests produce real results • Tests have clear limitations Next Webinar: Overcoming Testing Implementation challenges Chris Boag, Team Leader Recruiting and Selection 38 © Development Dimensions Int’l, Inc., MMVIII. All rights reserved.

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