Talent Management Strategic RecruitmentSuccession EngagedPlanning Performance Career Compensation Development Alignment
Talent Management (TM)TM is a strategic approach to managing human capital throughout the employees career cycle by selecting, developing, retaining, and transitioningyour workforce.1. Strategic Recruitment • Involves evaluating the knowledge, skills, and abilities that are needed to be successful on the job, as well as, the tangible value each position adds to your companys success. The evaluation of the job establishes the position specific competencies which are then used for selection of employees through a structured selection process.1. Engaged Performance • Enables managers and employees to establish challenging line-of-sight goals, accurately evaluate performance on a continuous basis, with recognition and reward systems aligned with strategic vision, mission and objectives of the organization.3. Compensation Alignment • Using compensation to attract, retain and motivate employees to achieve business goals. • Allocates salary and incentive to retain top performers and ensure their compensation is competitive in order to reduce flight risk. • Provides flexibility to business managers while adhering to corporate standards. • Aligns compensation with performance.4. Career Development • Establishes an environment that enables the delivery and provides accountability for your companys initiative to develop your workforce and facilitate the movement of employees throughout the company. Your organization should have systems and structures in place that allow you to target each employee’s development, create plans for development, capture employees’ past experiences, and project each employee’s career path and goals.5. Succession Planning • Deepens the talent pool so that your companys leadership is equipped with the necessary skills & experiences to meet and exceed future business needs. • Ensures that high-impact positions are filled with high-performing employees, and develop a pipeline of future leaders. • Understands the competencies required for success in key roles. • Identifies high-potential employees. • Develops effective programs to address competency gaps.
Do You Need a Succession Plan?Several common symptoms may indicate a need: 1. A retention risk analysis conducted to estimate projected departure dates for each individual in workforce or work group. 2. No way to quickly respond to sudden losses of key talent. If a key person is suddenly lost due to death, disability or resignation, it may take a long time to find a suitable replacement. 3. The time it takes to fill positions is too long, i.e., perceived by managers to, i.e., time-to-fill metric--. 4. Managers at one or many levels complain they have trouble finding people ready for promotion or willing to accept promotions as vacancies occur. 5. Workers complain that promotion decisions are made unfairly or capriciously. 6. Women, minorities, etc., not adequately represented at various levels and in various functions throughout the organization. 7. Critical turnover in high potential workers leaving Vs the number of fully successful (average) workers leaving.
TYPICAL METHOD IRely heavily on chance observations of people.CEO observes a manager making a presentation andsubsequently draw conclusions about the person’s abilitiesand future with the company.Chance observations offer, at best, only a glimpse into aperson’s talents.What about possible successors who could be equally orbetter qualified, but didn’t have an opportunity to displaytheir talents while an executive was looking on?
TYPICAL METHOD IIAsk senior executives throughout yourorganization to nominate High PotentialSuccessors.The nomination process often has one or more of thesefundamental flaws: • The criteria for selection are not clear. • The standards against which people are evaluated vary from one unit to another within a division or vary from one division to another division.Some nominators may be conscientious about submittingnames and supporting documentation, while others whodon’t want to give up their best people, may play games,e.g., • Naming an individual who just started an expatriate assignment, knowing full well that the person can’t be transferred out of the division. • Hiding best people and submit names of people they wouldn’t mind losing.
SYSTEMATIC SELECTIONTo make your talent identification process as accurate aspossible, your organization should have a systematicselection process with a uniform set of criteria against whichcandidates for accelerated development can be evaluated.Criteria may include: 1. A history of job success, as evidenced by measures of revenue growth, process improvements, or innovation. 2. Proven leadership. 3. Motivation for top management and demonstrated actions to get there. 4. Displayed business acumen/ entrepreneurial ability. 5. Evidence of strategic thinking. 6. Modeling your organization values. 7. Development of others.
STEP ONEWhile Human Resources and other partsof the organization must participate,leadership responsibility for successionplanning rests with your CEO.If your CEO does not favor systematicsuccession planning, it cannot besuccessful.
DEVELOP A STRATEGYQ. What is the objective of the strategy? Possible Answer: To have one or more qualified internal candidates prepared to assume each key leadership position.
HOW WILL YOU MEASURE SUCCESS? Possible Answer: The number of qualified internal candidates prepared to assume each leadership position by December 2010.
What Critical Positions In TheSuccession Plan Are Affected ByThis Process?Possible Answer:Mid-Level, Senior, & Executive Management .
COMPETENCY MODELSCompetency models provide blueprints of thetalent to build at present and in the future.In short, a competency model describes "whatshould be" for such hierarchical levels asexecutives, managers, supervisors,salespersons, technical professionals, andothers.Let’s look at the following model: • Cultural Competencies • Job-Specific Competencies • Key Job Responsibilities • Organization Knowledge • Job Challenges • Executive De-railers
Identifying Competencies1. Cultural competencies Assessing current corporate culture may determine how it needs to change in the future. This allows you to develop a set of cultural related leadership criteria and development approaches. Some examples include Change Leadership, Establishing a collaborative environment, Entrepreneurship, and Marketplace Acumen.2. Job-specific competencies What one is capable of, i.e., the clusters of behavior, knowledge, technical skills, and motivation that are important to success in senior management. Identify competencies that correlate with job success.3. Key job Responsibilities The major components of position should be listed in a well-written job description. Identify most important responsibilities or accountabilities of job. Few jobs have more than six key responsibilities. If you have more, you’re probably listing minor tasks that are performed to accomplish a key responsibility.
Identifying Competencies (Cont’d)4.Organization Knowledge Functions, processes, systems, products, services, or technologies of your organization that a manager must understand. For example, a candidate might be assessed in terms of his or her knowledge of company products, how the R&D process operates, or the function of the Quality Department.5. Job Challenges Kinds of situations that someone entering management should have experienced or at least been exposed to. Examples include carrying a key functional assignment through from beginning to end; being heavily involved with a merger, acquisition, strategic alliance, or partnership opportunity; implementing plans to cut costs or control inventories; negotiating agreements with external organizations; operating in high-pressure or high- visibility situations.6. Executive De-railers Personality traits that might cause an otherwise effective senior leader to fail on-the-job. These would include being approval dependent, argumentative (defensive), arrogant, attention-seeking (self-promoting), avoidant (procrastinator), addresses issues covertly, eccentric, imperceptive, impulsive, perfectionist, (micromanager), risk-averse, and volatile.
ASSESS BENCH STRENGTH1. Determine critical leadership positions that have at least one person ready to successfully assume role and responsibilities of each position.1. Assess high potential managers strengths, weaknesses, and succession readiness.2. Identify leadership planning gaps and develop action plans for improving the capabilities of select managers and professionals.3. Implement a high-impact coaching/mentoring program for the personal development of future leaders. Continue to observe, assess and challenge these key employees to better understand potential advancement options.
Assess Individual Potential for success at higher levels of responsibility.– Unlike past or present-oriented performance management, potential assessment focuses on the future.– Some means must exist to examine the talent available for future possibilities--and advancement.
Development GridHI CELL 3 CELL 1G “C” PlayersH “A” Player “A” Player Loose Canon Star Potential Star/Hi-Potential Provide Feedback to Participants Actively Develop For Next Level of Actively Develop For Next Level ofP Leadership LeadershipOTE CELL 2N “C” Players “B” PlayersT Problem Child Average Performer “A” PlayerI Solid CitizenA Provide Feedback to Participants Provide Feedback to ParticipantsL KEEP MOTIVATED Actively Develop For Next Level of Leadership “C” Players “B” Players “B” Players Poor Performer Slow poke Cash Cow Provide Feedback to Participants Provide Feedback to Participants Provide Feedback to Participants KEEP MOTIVATED KEEP MOTIVATEDLOW Low RESULTS High
Candidate Assessment ReportHIGH John Cameron Amanda Jones Matt Delaney John Smith Sally Filet Janet Gross Alice WonderPOTEN Tom MillerT Jane Doe Billy Evans Jerry PalmerI Bill Jones Scott RitterAL Gene Turnkey Mathis Masterson No CandidatesLOW Low RESULTS High
Ongoing Individual Development Planning.Once it is clear what present and future gaps existfor individuals as a result of performanceassessment and potential assessment, somemeans should be established to help themprepare for the future by narrowing those gaps.Individual workers and their immediatesupervisors should jointly devise a plan to helpindividuals develop and prepare for possible futurepromotions.
Individual Development Action Plans IDAPDetermine developmental activities to addressindividual learning needs with an IDAP for eachpool participant.Examples of developmental suggestions might includebooks to read, classroom courses to attend, online coursesin which to participate, on-the-job assignments to seek out,and action learning projects that bring together groups ofpeople to solve practical business problems whilesimultaneously permitting the means by which to buildcompetence in new areas. 1. Direct towards closing critical gaps & leveraging important strengths of the organization 2. Focus on preparing for next level of leadership 3. Structure to create logical sequence of learning
DEVELOPMENT ACTIVITIES Cell 1High Potential/High Results IDAPTIdentify lead roles within key assignments (typically thereare only a select few of these) to engage participants infunctioning at greater level of scope (i.e., magnitude, time &complexity) than current position.For example: 1. job rotations 2. action learning 3. task force leader 4. committee chair
DEVELOPMENT ACTIVITIES Cell 2Med Potential/High Results IDAPTIdentify active role (but not leader) within key assignments. 1. Stretch at a different pace than participants in cell #1. 2. Engage participants to function at greater level of scope (than current position). 3. Provide coach to help achieve results 4. Provide mentor to improve proficiency levels of competencies
DEVELOPMENT ACTIVITIES Cell 3High Potential/Med Results IDAPTIdentify active role (but not leader) within key assignments. 1. Stretch at a different pace than participants in cell #’s 1&2 2. Engage participants to function at greater level of scope (than current position) 3. Provide coach to help achieve better results (for example: Serve as a subcommittee chair on a multi- functional team) 4. Identify mentor to improve proficiency levels of competencies
DEVELOPMENT ACTIVITIES OthersMed Potential/Med Results IDAPTEncourage self directed growth & development 1. Identify a coach to help achieve results 2. Identify mentor to improve proficiency levels of competencies 3. Identify assignments, special projects with broader/bigger role than current level 4. Provide other development opportunities 5. Keep Motivated
Development GridHI Cell 3 “A” Player Cell 1 “A” PlayerG Actively Develop For Next Level Of Leadership Actively Develop For Next Leadership Level “C” Players Identify active role (but not leader) within key Identify lead roles within key assignmentsH Provide Feedback to Participants assignments. Stretch at a different pace than (typically there are only a select few of Encourage self directed growth & development participants in cell #’s 1 & 2. Engage participants Provide coach to help achieve better results these) to engage participants in functioning to function at greater level of scope (than current Identify smaller role in assignments or special at greater level of scope (i.e., magnitude, position). Provide coach to help achieve better projects at current level. Provide opportunities time & complexity) than current position. For results For example: Serve as a subcommittee P for development or training chair on a multi-functional team example: job rotations, action learning, taskO force leader, committee chair T E “C” Players “B” Players Cell 2 “A” PlayerN Provide Feedback to Participants Provide Feedback to Participants Actively Develop For Next Leadership Level T Encourage self directed growth & development Encourage self directed growth & Identify active role (but not leader) within keyIA • Coach to help achieve better results • Identify development. Identify a coach to help achieve assignments. Stretch at a different pace than L smaller role in assignments or special projects results & mentor to improve proficiency levels participants in cell #1. Engage participants to at current level. Encourage participant to find of competencies. Identify assignments, special function at greater level of scope (than current a mentor to improve proficiency levels of projects with broader/bigger role than current position). Provide coach to help achieve results competencies level. Provide other development opportunities and mentor to improve proficiency levels of Keep Motivated competencies “C” Players “B” Players “B” Players Provide Feedback to Participants Provide Feedback to Participants Provide Feedback to Participants Encourage self directed growth & Encourage self directed growth & development Encourage self directed growth & development • development. Mentor & train to improve Mentor & train to improve proficiency levels of Mentor & train to improve proficiency levels of proficiency levels of competencies. competencies. Provide additional learning/ competencies. Provide additional learning/L Provide additional learning/ development development opportunities at current level (e.g., development opportunities at current level (e.g., opportunities at current level (e.g.,O seminars, workshops) Provide opportunities for seminars, workshops) Provide opportunities for seminars, workshops). ProvideW opportunities for involvement in special involvement in special projects Keep Motivated involvement in special projects Keep Motivated projects LOW RESULTS HIGH
Implement Individual Development Action Plan Tactics (IDAPT)1. Benchmark best practices2. Identify a structured set of sequential developmental activities3. Identify multiple developmental strategies4. Identify cafeteria-style activities5. Identify how system will allow proficient people to “test out”6. Identify how annual development activities and competency updates will be obtained7. Identify if everyone is to go through the same developmental strategies, or, will developmental strategies be customized based on individual gaps, and how this will be accomplished
High Potential PoolsDepends on number of positions, and organization’s ability tosupport development, which includes: 1. Management’s available time. 2. Availability of coaches & mentors. 3. Number of prime developmental assignments. Top Pool I Management Middle Management Supervisory Pool II Management Individual Contributors
The number of pools may reflect how a companyis organized.For example, a Pool in your organization may be established to fill SingleBusiness Unit management positions, while a pool of mid-level managersmight be designated to fill a range of corporate positions. CORPORATE SBU SBU SBU I II II
Establish Accountability & Evaluate results– Identify Persons Responsible for Executing Individual Development Action Plan Tactics (IDAPT)– Track IDAPT progress– Assign Individual(s) Responsible for Auditing Results Executive Team & (HR) Staff person
Talent Management Business Impact A Systems • Attract & Hire Top Quality Talent Approach • Develop Future Leadership • Pipeline Strategic • Fill Key Positions w High Recruitment Performers • Build A Culture of Performance • Engage & Retain Employees Succession Engaged Planning Performance Career Compensation Development Alignment
MANUFACTURERS’ ASSOCIATIONOF SOUTH CENTRAL PENNSYLVANIA 160 Roosevelt Ave York Pa 17401 www.mascpa.org JIM BAKER SR CONSULTANT HR SERVICES 717-781-4070