Workforce of One co-author Susan Cantrell presented to the Seattle CHO Group on January 12, 2011. Slides from her presentation are posted here with permission from Accenture.

1. Workforce of One Revolutionizing Talent Management through Customization Susan M. Cantrell Personalizing Talent Management and the Mass Customization of People Practices CHO Group Session January 12, 2011

4. Copyright © 2010 Accenture All Rights Reserved.

6. Why then can’t customization revolutionize talent management too?

7. Instead of treating a workforce as a single monolithic entity…. Copyright © 2010 Accenture All Rights Reserved.

8. Why not treat each and every employee as a “workforce of one”? Copyright © 2010 Accenture All Rights Reserved.

11. Business benefits can be achieved through customization for both customers and employees Benefits of customer customization Benefits of employee customization Increased revenues Increased workforce performance & productivity Improved customer satisfaction Improved employee engagement Attract & acquire the most profitable customers Attract & hire the most talented employees More effective use of marketing resources More effective use of HR resources Flexibly respond to changing consumer tastes Flexibly respond to changing employee tastes Create a competitive customer advantage Create a competitive talent advantage

12. A look at the data…improved business results start with improved employee performance My performance would improve at an organization where the following are customized: Workforce of One Survey, 2008 n=557 When I work Where I work My benefits My compensation My incentives My performance appraisal My learning My career path My job responsibilities My organization's recruiting approach My organization’s hiring decisions 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

13. Customization also helps organizations attract and retain the best talent I would be attracted to and more likely to remain at an organization where the following are customized: When I work Where I work My benefits My compensation My incentives My performance appraisal My learning My career path My job responsibilities My organization's recruiting approach My organization’s hiring decisions Workforce of One Survey, 2008 n=557 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

14. Yet few employees believe their organization provides relevant, tailored HR practices My organization’s human resources practices are highly relevant The human resources department significantly supports and improves my performance at work strongly agree agree neither agree nor disagree disagree strongly disagree

15. It’s time to rethink our game plan Copyright © 2010 Accenture All Rights Reserved.

16. Catalysts for customization 2 3 4 5 6 1 Workforce of One Technology now enables customization Employees are customers too Knowledge work is changing HR fundamentally The C-Suite now cares about workforce performance Competition for talent will only get tougher Today’s workforce is getting increasingly diverse

18. “ If companies can figure out a way to acknowledge and respect the uniqueness of each person – and then figure out how to do that in a reliable and scalable way – we will make an enormous impact on individual employees’ success and on our companies’ collective success. The paradox is that we need to establish a norm that is itself abnormal .” – Joe Kalkman, Leader of HR Centers of Excellence, Best Buy

19. The four workforce of one customization approaches HR creates HR creates HR creates HR supports A variety of practices A variety of options A broad and simple rule with clear boundaries which can be interpreted in a variety of ways by each individual Individuals in defining their own personalized people practices from which all individuals can choose customized for specific groups of individuals Group A Group B Group C HR-Driven customization (More control; Less customization) Employee-driven customization (Less control; More customization) Segment the workforce Offer modular choices Define broad and simple rules Foster employee-defined personalization

21. Spanish bank Banesto segments its employees just as it segments its customers Segmentation for retail banking staff Board Premier Executives Other Executives Branch Managers Admin / Sales NEW ENTRIES LOW PERFORMERS PROGRESS POTENTIAL EXPERIENCIED HIRES NEW HIRES LOW PERFORMERS STANDARD PROGRESS HIGH POTENTIALS TALENT MAP

22. Ways to segment Healthy & Happy or Stressed & Burned Out? or Motivations Employee demographic Generation, Life stage, Gender, Ethnicity, Education level Employee relationship to the company Tenure in the organization, Professional stage, Level, Employee vs. contractor Geography Region, Country, City Work roles Nature of work, Workforce, Profession Value High potential, High performing, Most critical, Most sought after Personality Learning or thinking style, Relationship or networking style, Strengths Health Mental health, Physical health Values and behavior Engagement, Meaning and value of work, Most likely to leave, Mobility Intended hires As a segment by itself, By any segmentation scheme described above

24. Ways to offer modular choices Learning Style Choice in job activities JOB Choice in learning JOB Learning Modular chunks to be configured at will, Choices in learning channels Place Office/Home/Satellite Center/The Road, Menu of choice places in the office Work activities Disaggregation into small modular tasks, Menu of optional assignments Rewards/Recognition Menu of choices Performance appraisals Assessment criteria options Compensation Menu of choices Benefits Cafeteria benefits plans, Build-your-own health plans, Total rewards plans Time Schedule, Career break, or Pace of promotion option Career development Dual career paths, Next job choices, Choice of starting over on a new path Technology Menu of choices

27. Ways to make rules broad and simple Broadly define a job Mold the job to fit the person’s passions/ strengths Instead of molding the person to fit the job… Define results, not time or place Working anywhere, anytime… … frees people from the time clock Work place and time Define results, not time or place Competency management Define competencies by values or outcomes Rewards Let the manager allocate rewards Jobs Broadly define a job rather than by narrow tasks Time off Define paid time off Performance appraisals Cascade your performance goals Hiring Hire the whole person Compensation Use broadband pay schemes or broadly define pay by contribution to the business Career development Broadly define career trajectories and base promotions on contribution

30. “ We do what works for us; the same customization approach probably won’t work for everyone.” – Charlie Bresler, former President of Men’s Wearhouse and Current VP of HR and Marketing

31. Each workforce of one customization approach varies in key areas Degree of customization Ability to cope with change Resources required (HR/Employees) Control Perceived fairness Low Very high More/Less More/Less Less/More Less/More Segmentation Modular choices Broad and simple rules Employee-defined personalization

32. Case studies of workforce of one in action The broad and simple rules plus employee-defined personalization model The broad and simple rules only model The four approach model Low High Customization approach Segmentation Modular choices Broad and simple rules Employee-defined personalization

34. Workforce of One challenges and solutions Fairness Privacy Control Alignment with Business Strategy

35. Managing employees “my way” requires new skills and capabilities

37. The human resources function may end up looking like the marketing function next door

39. Susan Cantrell Fellow, Accenture Institute for High Performance Business [email_address] [email_address]