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Take Me Out to the Ball Game  Competency Based Talent ManagementNext Practices, Not Best Practices!                       ...
Take Me Out to the Ball Game            Moneyball - What Did Brad Do?            He Redefined the Definition of a Baseball...
Agenda                                            Business Challenges                                                     ...
Business Challenges               Strategic Sourcing / Supply Chain Results have Fallen Far               Short of Expecta...
Business Challenges              Because Our People Lack World Class Competencies:       • Results have not gone beyond “l...
Agenda                                            Business Challenges                                                     ...
Current Thinking              The Return On Investment (ROI)                                              ROI per $1 Milli...
Current Thinking              Optimizing your Procurement Organization        There is a strong correlation between improv...
Agenda                                            Business Challenges                                                     ...
TMG’s Thinking             TMG’s History of Competency Based Talent Management      Model pioneered by Digital Equipment C...
TMG’s Thinking                What is Competence?            Performance that Consistently Achieves a Standard            ...
TMG’s Thinking                                                                           Recruit/Select                   ...
TMG’s Thinking           Why the Competency Model is Important to CBTM Strategy?         • Creates a common language withi...
TMG’s Thinking                Sourcing/Supply Chain Competency Model                                                      ...
TMG’s Thinking                 Competency Model Framework                                                                 ...
TMG’s Thinking             Competency Model Framework                                                                     ...
TMG’s Thinking             Execution Gap vs. Skill Gap – Job Family 1                                                     ...
TMG’s Thinking                Best Practice                                                                               ...
TMG’s Thinking              Best Practice                                                 Performance                     ...
TMG’s Thinking                Best Practice                                                Career                         ...
TMG’s Thinking                Best Practice                                               Succession                      ...
TMG’s Thinking               Best Practice                                                 Training /                     ...
TMG’s Thinking                     Talent Development Generates Bottom Line Results                 8                     ...
TMG’s Thinking             Competency Based Talent Management or Training?                                        Training...
TMG’s ThinkingDifferent Learning Approaches Yield Dramatically Different Results                          Expert          ...
TMG’s Thinking             Training - Focus on Application / Adoption                                                     ...
TMG’s Thinking            CBTM Drives Exceptional Business Results                                                        ...
Agenda                                            Business Challenges                                                     ...
About The Mpower Group           The Mpower Group is in the business of Mpowering our clients to accelerate           exce...
About The Mpower Group                                                                         Differentiators            ...
About The Mpower Group             TMG Selected Clients                                                                   ...
About The Mpower Group       The Ball is in Your Court!        We have plenty of information to share with you!           ...
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Take Me Out to the Ball Game - Competency Based Talent Management

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  • Key MessagesRun thru the listTwo reasons:Poor Adoption - Processes are in place BUT no one is following themTechnology has been implemented BUT not being usedTraining has been done BUT itDidn’t focus on the right competenciesWasn’t put into practice The organization was not prepared for the changePoor Strategy Focus on price / cost destroys value with Suppliers and internal business partnersWhich ultimately gets in the way of achieving exceptional business results
  • Key MessagesRun thru the listTwo reasons:Poor Adoption - Processes are in place BUT no one is following themTechnology has been implemented BUT not being usedTraining has been done BUT itDidn’t focus on the right competenciesWasn’t put into practice The organization was not prepared for the changePoor Strategy Focus on price / cost destroys value with Suppliers and internal business partnersWhich ultimately gets in the way of achieving exceptional business results
  • Level 1:  Reaction of student - what they thought and felt about the trainingLevel 2:  Learning - the resulting increase in knowledge or capabilityLevel 3:  Behavior - extent of behavior change and capability improvement Level 4:  Results - the effects on the business or environment resulting from the trainee's performanceToday, most add a fifth level for ROI.
  • Level 1:  Reaction of student - what they thought and felt about the trainingLevel 2:  Learning - the resulting increase in knowledge or capabilityLevel 3:  Behavior - extent of behavior change and capability improvement Level 4:  Results - the effects on the business or environment resulting from the trainee's performanceToday, most add a fifth level for ROI.
  • Transcript of "Take Me Out to the Ball Game - Competency Based Talent Management"

    1. 1. Take Me Out to the Ball Game Competency Based Talent ManagementNext Practices, Not Best Practices! Dalip K. Raheja President & CEO
    2. 2. Take Me Out to the Ball Game Moneyball - What Did Brad Do? He Redefined the Definition of a Baseball Player. Performance Creative Evaluations Reward System Management Strong Recruiting Competency Focus Winning Culture Coaching/ Mentoring Training/ Player Value Conditioning© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 2
    3. 3. Agenda Business Challenges Current Thinking TMG’s Thinking About TMG© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 3
    4. 4. Business Challenges Strategic Sourcing / Supply Chain Results have Fallen Far Short of Expectations……. Do not have a “voice” in the Boardroom – no “C” level executive Focus on short term results – often at the expense of long term “value” creation Sourcing process often leads to conflict with internal functions and suppliers Cost focus stifles innovation and value creation with suppliers Metrics reinforce “the old way” of doing business Training, when done, is not providing the desired result Risk Management is a significant concern© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 4
    5. 5. Business Challenges Because Our People Lack World Class Competencies: • Results have not gone beyond “low hanging fruit” • “Value” is left on the table with suppliers • We are constantly under pressure to improve results • We can’t meet internal and external customers’ needs • We don’t leverage our experience and learning • Suppliers stay at marginal performance levels • We are NOT a competitive advantage for the company • We spend too much of our time expediting and fixing Talent Management is consistently one of the top three concerns in surveys of Sourcing & Supply Chain leaders© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 5
    6. 6. Agenda Business Challenges Current Thinking TMG’s Thinking About TMG© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 6
    7. 7. Current Thinking The Return On Investment (ROI) ROI per $1 Million Spent on Procurement Operations 8 6 $6.3 Million Millions 4 2 $2.7 Million 0 Peer Group World Class TOP TALENT MANAGEMENT PERFORMERS GENERATED: $247 Million annually via a 22% improvement in NET PROFIT MARGIN $992 Million annually via a 49% improvement in RETURN ON ASSETS $340 Million annually via a 27% improvement in RETURN ON EQUITY They spend 6% less overall on HR than typical companies 133% greater return on the cost of procurement operations then typical companies (see graph) Leading Benchmarking Firm© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 7
    8. 8. Current Thinking Optimizing your Procurement Organization There is a strong correlation between improved financial performance and top-quartile performance in four key talent management areas: 1. Strategic Workforce Planning (gap analysis) Generated EBITDA Across 4 2. Staffing Services (staffing, recruitment, Standard Financial Metrics exit management) 17% 3. Workforce Development Services (training 16% and career planning) 16.2% 4. Overall Organizational Effectiveness 15% (employee relations and performance % EBITDA 14% management) 14.1% 13% 12% For a typical Fortune 500 company, this equates to an 11% additional $399 Million annually. 10% Peer Group World Class Leading Benchmarking Firm© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 8
    9. 9. Agenda Business Challenges Current Thinking TMG’s Thinking About TMG© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 9
    10. 10. TMG’s Thinking TMG’s History of Competency Based Talent Management Model pioneered by Digital Equipment Corporation, (late 1980’s) Enfield, CT • One of the first competency based organizations • High Performance Work System • Employees rewarded / promoted based on competencies developed • Became the standard for many cross-industry best practices TMG has years of experience supporting Competency Based Talent Management programs across multiple industries • Bank One – Developed organizational vision and implementation plan to identify high-potential candidates to be retained in the organization. Identified skill gaps and created and executed a development program to close the gaps. • Nicor – Determined Functional and Strategic competencies for open positions. Three high-level Sourcing professionals were added to their team. • FMC Technologies – Created a world-class Strategic Sourcing competency model. Prioritized gap closures strategies and created an actionable plan. Executed a training curriculum and adoption model. • Volvo Construction Equipment – Assessed VCE’s individual and organization competencies in Strategic Sourcing and Supply Chain Management. Created and executed a roadmap to close competency gaps.© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 10
    11. 11. TMG’s Thinking What is Competence? Performance that Consistently Achieves a Standard • A set of behaviors that encompasses skills, knowledge, abilities, and personal attributes that, taken together, are critical to successful work accomplishment • Requires application of knowledge and skill within a specific context • Often requires demonstrable performance over an extended period of time • MUST be focused on organizational competencies – CANNOT be limited to “individuals”© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 11
    12. 12. TMG’s Thinking Recruit/Select Succession Planning Competency Performance Evaluation Based Talent Competency Management = Based Talent Management Exceptional = EBR Business Results Career Training / Management Development© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 12
    13. 13. TMG’s Thinking Why the Competency Model is Important to CBTM Strategy? • Creates a common language within a “system” • Provides consistent expectations among employees • Provides employees a line-of-sight into the future • Defines the “context” under which work is performed • Ensures the right fit of an individual for a specific job • Can ensure training is targeted to increase ROI© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 13
    14. 14. TMG’s Thinking Sourcing/Supply Chain Competency Model Competencies Supply Chain Management Purchasing Management Strategic Sourcing Negotiations & Contracting Supplier Relationship Management Demand Management Material Requirements Planning Capacity Planning Inventory Control Risk Management Lean Management Sustainability© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 14
    15. 15. TMG’s Thinking Competency Model Framework Client Example Change Business, Industry, & Enterprise Knowledge Management Supply Chain & Purchasing Consulting & Management Operational Management Facilitation Strategic Sourcing Competency Exceptional Information Based Business Technology Talent Results Negotiations Management & Contracting Project Management Supplier Relationship Management Business Context / Organizational Teamwork Competencies Strategic Competencies Functional Competencies© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 15
    16. 16. TMG’s Thinking Competency Model Framework Client Example Business & Enterprise Knowledge Collaboration Supply Chain Management Project Management Problem Solving Strategic Supplier Sourcing Development Negotiations & Contracting Supplier Relationship Management Change Management© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 16
    17. 17. TMG’s Thinking Execution Gap vs. Skill Gap – Job Family 1 Client Example Skill Key (Blue Solid Line) Frequency Key (Dotted Line) 0=Very Low 0=Never CONSULTING & 1=Low 1=Rarely FACILITATION (ADV) 2=Moderate FR: 3.86 | SK: 3.71 2=Occasionally 3=High 3=Often SUPPLY CHAIN CHANGE MANAGEMENT 4=Very High 4=Always OPERATIONS (ADV) (ADV) FR: 1.71 | SK: 1.57 FR: 3.89 | SK: 3.56 PROCUREMENT PROCESS ENTERPRISE SYSTEMS & (ADV) SOFTWARE (FND) FR: 3.75 | SK: 3.50 FR: 2.80 | SK: 2.40 PURCHASE ORDER INVENTORY PLACEMENT AND MANAGEMENT (FND) MANAGEMENT (ADV) FR: 0.90 | SK: 1.00 FR: 3.33 | SK: 3.50 PROJECT MANAGEMENT INFORMATION (ADV) TECHNOLOGY (INTER) FR: 3.29 | SK: 3.00 FR: 3.50 | SK: 2.83 OPERATIONS SURVEYS IN SAMPLE: 1 NEGOTIATIONS (ADV) MANAGEMENT (ADV) FR: 4.00 | SK: 4.00 JF01:PROCUREMENT LEADER FR: 2.50 | SK: 3.17© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 17
    18. 18. TMG’s Thinking Best Practice Next Practice • Describe the duties and Recruit/ Recruit/Select • Acknowledge that you are tasks to be performed Select in a war for talent. • Recruit to fill past Differentiation is key requirements • Create a plan for marketing • Select based on duties and jobs, creating the right activities “sizzle” that attracts the • Trust that there is growth Succession best candidates Performance Planning Evaluation potential • Determine organizational Competency competency gaps to Based Talent develop decision criteria Management • Focus recruitment on 3-5 = EBR year competency needs • Test, select, interview, reference check candidates based on actual demonstrated competencies Career Training /• Ensure candidate can grow Management Development with the organization© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 18
    19. 19. TMG’s Thinking Best Practice Performance Next Practice Performance Evaluation • • Typically annual “one off” Required competencies event Evaluation drive performance • Generic evaluation form management • Focus on activities • Evaluation tied directly to • Focus on ability to perform job competencies • General feedback • Focus on demonstrated emphasizing procedures Training / application of skills Recruit/Select Development and personality • Mutually agreed to Competency development plan Based Talent • Metrics included in Management leaderships’ evaluation = EBR Succession Career Planning Management© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 19
    20. 20. TMG’s Thinking Best Practice Career Next Practice • Time and title driven Career Management • Competency driven • Progress often unclear Management • Progress measureable and • Career progression visible disjointed and haphazard • Career progression smooth • “What/who you know” and tied to competency • Difficult to address cross- growth functionally Training / • Succession you do with what “What Development Planning • Focus is on climbing layers you know ” Competency • Linked across functions by Based Talent competencies Management • Career development is = EBR owned by employees • Focus on broader experience and growth Performance Recruit/Select Evaluation© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 20
    21. 21. TMG’s Thinking Best Practice Succession Next Practice Succession Planning • Frequently separate from • Integrated with other talent talent management system Planning management activities • Annual naming exercise • Ongoing, continuous • Tied to functional process assignments • Tied to competencies for • Seldom looks beyond one each position Career organizational level or •Recruit/Select Integrates organizational Management function needs horizontally and Competency vertically Based Talent • Talent is managed as a Management critical asset = EBR Training / Performance Development Evaluation© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 21
    22. 22. TMG’s Thinking Best Practice Training / Next Practice Training / Development • • Task focused Tailored to address • “One size fits all” Development competency gaps • Focus on training hours • Focus on organizational • Focus on individual needs needs while fulfilling • Level 3 evaluation at best individual needs • Assumption: training • Level 4 evaluation intrinsic events drive resultsPerformance • Career Application activities Evaluation Management ensure knowledge capture Competency • ADOPTION “bridge” Based Talent intrinsic part of training Management methodology = EBR Succession Recruit/Select Planning© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 22
    23. 23. TMG’s Thinking Talent Development Generates Bottom Line Results 8 Annual Training 6 Hours Differential $6.3 Million 75 Millions 4 60 2 $2.7 Million 45 74 % 0 30 Peer Group World Class World-class procurement organizations 15 invest aggressively in talent-management strategies designed to retain and develop 0 their staff. Increased competency levels Peer Group World Class translates into improved business results in the key skills required to undertake processes such as pricing and cost analysis, Leading Benchmarking Firm sourcing and supplier management.© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 23
    24. 24. TMG’s Thinking Competency Based Talent Management or Training? Training Competency Development Focuses on functional skill building Focuses on developing new behavior – skill, knowledge AND ability Point in time knowledge transfer Requires application within context Develops individual skills Creates organizational competency Success is measured by a quiz or survey Success is measured through demonstrable performance over time Practice ends in the classroom Adoption begins in the classroom Course work is modularized Course work is integrated Full curriculum can be delivered Some courses can be delivered on-line on-line Would you rather be here? Or here?© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 24
    25. 25. TMG’s ThinkingDifferent Learning Approaches Yield Dramatically Different Results Expert On-the-Job Experience Fully Proficient Level of Competency Experiential Simulations Learning Mostly Effective Case Studies Group Exercises Basic Lectures On-Line Training Readings© 2012 The Mpower Group, Inc. All Rights Reserved. Learning ApproachesUnauthorized Duplication, Storage or Transmission Strictly Prohibited. 25
    26. 26. TMG’s Thinking Training - Focus on Application / Adoption Client Example Launching the Workshop • Discussion of relevant topics Application Architecture (Integrates • Working sessions with Functional and deliverables and report outs Teams Individuals Strategic • Assignments to be completed after Pilot Week 1 = Competencies) Two formal meetings, 2 Two formal meetings, Hrs. each + ongoing 1 Hr. each + ongoing contact contact Day 1 Week 2 – 4 = Post-Training Application Contract Two calls, 2 Hrs. each + Two calls, 1 Hr. each + • Change Management ongoing contact ongoing contact Day 2 • Team / Work Group Week 5 = Governance One formal meeting, 2 One formal meeting, 1 Day 3 • Acceptance of Coaching Hrs + One call, 2 Hrs. + Hr + One call, 1 Hr. + ongoing contact ongoing contact • Engagement with Participants’ Supervisors Weeks 6 – 8 = • Status Reports on progress Two calls, 2 Hrs. each + Two calls, 1 Hr. each + ongoing contact ongoing contact Weeks 9 – 12 = One weekly 1 Hr. Call + One weekly 1 Hr. Call ongoing contact + ongoing contact© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 26
    27. 27. TMG’s Thinking CBTM Drives Exceptional Business Results More Effective Recruiting • Right People/ Right Job • Quicker Decisions Return On Investment Clear Performance • Increased For Expectations Talent • Focused Management Evaluations Effort • Continuous • Demonstrable Improvement Over Time Competency Based Talent Better Knowledge Management Direct Training Management Impact (CBTM) • Capture / Share • Bottom Line Experience Impact • Maintain • Demonstrable Competitive Edge ROI More Satisfied Clear Career Growth Employees • More Staffing • Greater Flexibility Productivity • Improved • Reduced Succession Turnover Planning© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 27
    28. 28. Agenda Business Challenges Current Thinking TMG’s Thinking About TMG© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 28
    29. 29. About The Mpower Group The Mpower Group is in the business of Mpowering our clients to accelerate exceptional business results by unleashing the full potential of their Strategic Sourcing / Supply Chain organizations. We are a global consulting firm dedicated to serving the needs of Fortune 500 Strategic Sourcing & Supply Chain organizations. We help our clients by: – Accelerating Strategic Transformation: Rapidly move client organizations along The Mpower Group’s Strategic Sourcing & Supply Chain Maturity Model to peak performance levels. – Building Exceptional Talent: Advance the competencies of our clients’ Sourcing and Supply Chain professionals to World-Class performance levels. – Maximizing Deal Value: Help clients realize the full value from large and/or complex deals by focusing on A) Total Cost of Ownership before and during negotiations, and B) a sustainable implementation once the deal has been reached. The Mpower Group is a World Class Strategic Sourcing & Supply Chain consultancy that delivers big results with a boutique feel. We are Woman and Minority owned.© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 29
    30. 30. About The Mpower Group Differentiators Maximum Value Extractors – The tools, processes, and infrastructure to help you realize the highest possible return on Strategic Sourcing & Supply Chain efforts. Accelerators – Best Practices Change Management techniques to address “predictable and inevitable” speed bumps that slow implementation. Wisdom – We sat in your seat as industry executives. Our consultants are senior level resources, not kids with MBAs. We leverage rigorous benchmark studies and research to capture World-Class “Next” Practices. Transfer of Competencies - Ensure successful, sustainable engagements by Mpowering your people to develop and apply World-Class competencies.© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 30
    31. 31. About The Mpower Group TMG Selected Clients Enhance Med© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 31
    32. 32. About The Mpower Group The Ball is in Your Court! We have plenty of information to share with you! • Jobs • Self Assessments • Blog Posts • Research Studies • White Papers • Articles • Industry Trends Crystal Jones 630-268-8963 crystalj@thempowergroup.com or visit our blog at blog.thempowergroup.com© 2012 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited. 32

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