Some thoughts on taking advantage of the current employment market.

1. DDI Canada Webinar Series
Part I: Leveraging
Testing Tools in a
Down Economy
July 9th, 2009
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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.
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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
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4. Agenda and Purpose
• The Opportunity
• The Business Case
• The Tools
• What to Expect/Not Expect
• Summary
• Next Webinar
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5. The Opportunity
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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
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7. The Opportunity:
Focused Hiring Rules the Day
• Key positions?
• Replacement hiring
• Hiring in areas with growth
• Invest in the long term
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8. The Opportunity:
The Candidates
• More of them
• More aggressive
• More variety
• % of talent is the
same
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9. The Opportunity:
Your Competitors
30%
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10. The Business Case
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11. Selection trumps development
20% development
80% selection
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12. The Business Case…
The 3 Hiring ‘Profit’ Factors
1. Hiring Process
2. Ramp-Up
3. Productivity
Costs are triggered by
• Growth
• Turnover
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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?
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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
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15. The Tools
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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
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17. Everyone’s Question
What’s the
best test?
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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
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19. What Do they Have in Common?
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20. Selection Funnel:
Test Earlier than Later
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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)
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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
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23. Keep It Simple
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24. Keep It Simple
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25. Keep It Simple
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26. Keep It Simple
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27. Simple, Valued, Report
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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
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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
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30. Build Your Bench
Hire/Select for the Future
50 times
24 times
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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
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32. What you should
and should not
expect from tests
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33. Shine As Many Lights As You Can
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34. You Should Expect
• Efficiency
• Consistency
• Diversity and Fairness
• Quality of Interviews
• Time to Hire
• Wasted Interview Time
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35. You Should Expect
• Integration with other steps
• Identification of MORE HiPos
• Measurement of less developables
• Faster ramp up times
• Higher than average performance
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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
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37. Summary & Next
Webinar in Series
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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
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