Performance Benchmarking - Talent

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As a recent bestseller puts it: smart leaders put people before numbers. Here are the results of a recent benchmarking survey of 60 small- and medium-sized manufacturing, technology and service firms based, primarily in southwestern Pennsylvania. Interesting perspective on a crucial issue; don't forget to check out the Suggested Next Steps!

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  • Performance Benchmarking - Talent

    1. 1. PERFORMANCE BENCHMARKING Talent April 2010
    2. 2. Background/Overview
    3. 3. This topic emerged from the previous survey(Outlook 2011), which made clear how focused company leaders are on Talent
    4. 4. 60 companies took part in the benchmarking study - agreater than 35% jump from the 2011 Outlook survey!
    5. 5. 60 companies took part in the benchmarking study - agreater than 35% jump from the 2011 Outlook survey!As always, the companies are mix of manufacturing, technology and service businesses
    6. 6. 60 companies took part in the benchmarking study - agreater than 35% jump from the 2011 Outlook survey!As always, the companies are mix of manufacturing, technology and service businesses The vast majority have revenues of $5-$20 million
    7. 7. Since I began this process more than 18 months agotogether with The Executive Forum, well over 100 people have participated in the benchmarking surveys
    8. 8. Thanks!
    9. 9. Executive Summary
    10. 10. With regard to Talent, participating companies reported some important strengths
    11. 11. With regard to Talent, participating companies reported some important strengths They feel they have very strong leadership And they rate themselves highly on Talent Assessment
    12. 12. Where companies have clearly established CoreValues, they tend to use them in meaningful ways
    13. 13. At the same time, there are some specific areas of opportunity
    14. 14. Respondents rated themselves much lower on Managing Talent and Talent Development, than they did Talent Assessment (We’ll get into definitions a little later)
    15. 15. A surprisingly large number of companies do not have well-defined Core Values
    16. 16. Less surprising, a majority of companies do not have a full-time HR personAnd even when they do: it is very rare for this person to be seen as a strategic asset
    17. 17. 61%of respondents indicated that their companydoes not make a “specific and meaningful” investment in continuous learning
    18. 18. Since I’ve borrowed liberally from Bill Conaty and Ram Charan, let’s think of really high- performing firms in thisdomain as Talent Masters
    19. 19. Briefly, a Talent Master:
    20. 20. Rates their Executive Team highly Has well-defined Core ValuesIs good at Managing, Assessing and Developing Talent and invests in Continuous Learning
    21. 21. From 60 responses, seven organizations qualified asTalent Masters, very nearly representing the top 10% of survey participants
    22. 22. The Data
    23. 23. The Executive TeamSome organizations have a leadership team with as many as 10-12 people A handful had groups as few as 2-3
    24. 24. By far, the typical leadership team is made up of 4-8 individuals In my experience, this is a great number: broad enough to allow for diverse points of view, but not so big as to be unwieldy
    25. 25. In maybe the most encouraging finding in the study71% of companies rated their leadership team as“Pretty Strong”, while another 10% felt they were “Tops in our industry”
    26. 26. That’s pretty awesome!
    27. 27. And could help to explain the tremendous optimism expressed in the Outlook 2011 surveyAs well as the strong company performance data people reported in that survey
    28. 28. Before getting into Managing Talent, Talent Assessment and Talent Development, let’s start with some definitions
    29. 29. ManagingTalent wasdefined as:
    30. 30. ManagingTalent wasdefined as:“continuously looking for it,acquiring it wheneverpossible and growing it onceon board”
    31. 31. This is the Big Picture view of talent, with an emphasis on the front end (talent acquisition)
    32. 32. Talent Assessment was defined as:
    33. 33. Talent Assessment was defined as:“evaluating potential new hires as well as existing staff”
    34. 34. This perspective is focused on a clear understanding of thecards in your hand, aswell as those still in the deck
    35. 35. Talent Developmentwas defined as:
    36. 36. Talent Developmentwas defined as:how you work with people“once someone is on board”
    37. 37. This perspectiveis focused on optimizing the hand you’ve been dealt
    38. 38. A slight majority of companies (54%) said thattheir leadership team does not actively manage talent, as we’ve defined it
    39. 39. This is an incredibly important competency that shows lots of room for improvement
    40. 40. As noted in the Executive Summary,organizations rated themselves much higher on Talent Assessment
    41. 41. 2/3 of the respondents indicated that their company is either “Pretty good” at Talent Assessment or that “This is clear strength”
    42. 42. That’s pretty impressive
    43. 43. Talent Development fell in between the ratings for Managing Talent and Talent Assessment
    44. 44. A slight majority (54%) rated themselves highly in this regard
    45. 45. But there are still a large number of organizations saying that this is “Not a strength of ours” or “We do poorly”
    46. 46. As this deals with the base of talent already embedded in your companies ...
    47. 47. This is kind of a scary figure
    48. 48. Other important considerations regarding Talent
    49. 49. Nearly 60%of the companies surveyed have “clearly described and widely accepted Core Values”
    50. 50. This is great
    51. 51. For the companies that have them!
    52. 52. Especially since the companies that have defined their Core Values also put them to good use
    53. 53. 2/3 use Core Values during the interviewingof them process
    54. 54. and 2/3 of them use Core Values during performance reviews
    55. 55. But there’s some trouble in Dodge
    56. 56. Since 42% of the survey respondents do not have well-defined Core Values
    57. 57. and some that do, don’t use them as part of their “everyday management”
    58. 58. only about 1/3 of the survey respondents have Core Values and use them in a meaningful way
    59. 59. c:Not great
    60. 60. 60% of those surveyed do not have a full-time HR person
    61. 61. This is not surprising given the size of companies who participated
    62. 62. For the companies that do have an HR staff person
    63. 63. 36% indicated the person is largely an administrator 45% consider them a true managerwhile only 18% see this person as a strategic player
    64. 64. Factoring in all respondents, the data speaks even more clearly
    65. 65. Factoring in all respondents, the data speaks even more clearly More than 3/4 of the participating companies do not have an HR person or the person they do have is considered to be an administrator
    66. 66. Fewer than 4 in 10 respondents“make a specific and meaningful investment in continuous learning” for their leadership team
    67. 67. Also kinda scary
    68. 68. What one thing?
    69. 69. The survey asked: What one thing would you like to accomplish to improve the talent of your executive/senior management team?
    70. 70. Overall, the answers ranged broadly, but there were a handful of key themes thatmore than half of all participants mentioned
    71. 71. A more consistent approach to talent development Additional training at the executive level Greater accountability Improved meeting frequency and qualityMore strategic thinking (in addition to continuous improvement)
    72. 72. And perhaps the one response that spoke for many participants:
    73. 73. And perhaps the one response that spoke for many participants:More professional development tied to business results
    74. 74. Suggested Next Steps
    75. 75. Talent Masters, as defined in this study, do a lot of thingswell ... and that’s why there are so relatively few of them -- just over 11% of all survey participants
    76. 76. Specifically, Talent Masters: Have strong executive teamsHave defined their organizational Core Values and Manage Talent effectively
    77. 77. These are the Big Picture considerations
    78. 78. In addition, Talent Masters:Are strong at Talent Assessment, Talent Development and Invest in Continuous Learning
    79. 79. Great.
    80. 80. Great.So what about the rest of us?
    81. 81. If the leadership team is not strong, you must take action
    82. 82. Pinpoint weak people and be very specific in diagnosing their development opportunities
    83. 83. Pinpoint weak people and be very specific in diagnosing their development opportunities Yup, that means going to work on their weaknesses
    84. 84. Verne Harnish’s People Worksheet is a really simple tool that can help you get to the root of this issue I shared this with many of you in January; let me know if you’d like a copy of the worksheet
    85. 85. Jim Collins has been one of themost forceful promoters of the idea of Core Values
    86. 86. And some of my best clients have benefitted greatly by defining their Core Values
    87. 87. As a practical matter, Verne Harnish has a great -- and simple! -- method for developing Core Values in Mastering The Rockefeller Habits It’s called “Mission to Mars” and can be found on page 44
    88. 88. Managing Talent, particularly as we’ve defined it with a focus on talent acquisition, is no easy matter
    89. 89. One thing seems clear, however:The companies that do best in this regard, have an on-going effort to identify talent
    90. 90. Or to put it another way:
    91. 91. Or to put it another way:Acquiring talent is not episodic or event-driven, such as when someone unexpectedly quits or is fired
    92. 92. Or to put it another way:Acquiring talent is not episodic or event-driven, such as when someone unexpectedly quits or is fired It is on-going and relentless
    93. 93. Another option to consider at the leadership level is executive outsourcing
    94. 94. A Pittsburgh-area company called c-leveled is active in this space and may be worth a look www.c-leveled.com
    95. 95. Talent Assessment, remember, is a core competency for most companies that took part in the survey nearly 70% claim to be pretty good at it or see it as a clear strength
    96. 96. Though the survey did not explore Talent Assessment practices, the definition points to two components Interviewing job candidates and Evaluating current staff
    97. 97. While there are many great tools and practices out there,establishing Core Values and using them in interviews and performance evaluations is an excellent place to start
    98. 98. Talent Development -- optimizing the existing team -- was an area for improvement Nearly half those surveyed felt that this was not an organizational strength or that they do a poor job of this
    99. 99. Given that Talent Assessment was ratedrelatively highly, it seems there may be a disconnect
    100. 100. Perhaps what is needed it to aligntalent “assessment” with a program for specific improvement
    101. 101. But the data suggeststhat many of us maynot have much of an appetite for difficult conversations
    102. 102. My Executive Forum group has developed their ownPerformance Plans for 2011 -- in large part because many of them don’t have a boss to report to
    103. 103. They are the boss
    104. 104. This was a simple three-step process:Create 2-3 key performance goals and 2-3 learning goals Establish specific metrics for each goalDevelop a Traffic Light dashboard for each metric
    105. 105. A similar approach could be built into your performanceplanning process -- with an emphasis on development (i.e. improvement) opportunities
    106. 106. Regarding the HR function, it’s clear that many companies inthe survey probably do not require a full-time HR staff person
    107. 107. What is critical, however, is that someone “own” the strategic component of Talent Management
    108. 108. I believe that the senior-most person (or at minimum, aresponsible executive) should always have this as one of their performance goals
    109. 109. On the subject of continuous learning, the research-based evidence that learning organizations outperform other firms is widespread and well-established
    110. 110. And as Jim Kouzes and Barry Posner, who have beenstudying leadership for more than three decades, have written:
    111. 111. And as Jim Kouzes and Barry Posner, who have beenstudying leadership for more than three decades, have written:“The best leaders are the best learners”
    112. 112. Or as Peter Drucker put it in The Effective Executive:
    113. 113. Or as Peter Drucker put it in The Effective Executive:“The executive’s job is to be effective; and effectiveness can be learned”
    114. 114. In The Talent Masters: Why Smart Leaders Put PeopleBefore Numbers, Bill Conaty and Ram Charan describe “Crotonville (GE’s legendary training center) on any budget”
    115. 115. Two of their very practical suggestions:Turn leaders into teachers -- the benefits of which are almost too numerous to list! and Bring an outside perspective -- for example by partnering with a university
    116. 116. Conclusions
    117. 117. Perhaps the best way to conclude is with a reminder of what Talent Masters do well
    118. 118. Talent Masters rate their Executive Team highly Have well-defined Core ValuesAre good at Managing, Assessing and Developing Talent and invest in Continuous Learning
    119. 119. Hopefully, the Suggested Next Steps section of thepresentation gives you some practical ideas aboutwhere to start on your journey to becoming a Talent Master
    120. 120. And thanks again to all 60 people who participated in the study!
    121. 121. If you are interested in more information or have questions or comments, please don’t hesitate to contact me.
    122. 122. If you are interested in more information or have questions or comments, please don’t hesitate to contact me. BRYAN J. FISCHER OneStepBeyond 1415 Macon Avenue 8 Pittsburgh, PA 1521 41 2.849.7261 yondllc.com bfischer@onestepbe

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