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April 2012




Turning People Intelligence into
Strategic Advantage
                       Dr. Ray Glennon, SHL,
                               C. Psychol, AFBPsS




                                     © SHL 2012
                 1
The CEO perspective: Talent is Critical

       Q. To what extent do you anticipate changes to any of the
                              following areas of your company?
                                   83%                  Talent Management Strategy




   “Talent is now at the top of the CEO Agenda with 83% of CEO’s anticipating
           making changes to their talent management strategy in 2011”
                                                    PWC, Annual CEO Survey, 2011


                                                                          © SHL 2012
                                         2
People Intelligence: Do you know your critical talent?


“75% of companies do not have access to the talent data
  they need to make informed business decisions”


“75% of companies have visibility into their defined
 business goals but only 21% know if they have the
 skills to execute it”
                                Taleo, Talent Intelligence Report , 2011




                                                              © SHL 2012
                                 3
27th Jan 2012


“Today almost all of the 70 million
iPhones, 30 million iPads and 59
million other Apple products sold
last years were manufactured in
other countries. “Why can’t that
work come home?”, President
Obama asked Apple’s Steve P.
Jobs at a dinner in California last
                                          Apple’s executives believe the
February.
                                          vast scale of overseas factories
                                          as well as the flexibility,
“Those jobs aren’t coming
                                          diligence and industrial skills
back,” Mr. Jobs reportedly said.
                                          of foreign workers have so
                                          outpaced their American
It is not just a matter of wages
                                          counterparts that “Made in the
being lower outside the United
                                          U.S.A.” is no longer a viable an
States….
                                          option for most Apple products”.

                                                                © SHL 2012
                                      4
Using data to get the most from your critical talent


“If you and your head of HR
haven’t recently discussed
ideas for using data to
generate a talent strategy
that’s more closely linked to
business results
             …it’s time to start.”


 How good is HR at using
 data to justify its case and
 drive change?

Source: McKinsey 2011 “Question for your HR chief: Are       Source: McKinsey Quarterly 2011
we using our people data to create value?”



                                                                                 © SHL 2012
                                                         5
What is SHL Talent Analytics?


  SHL Talent Analytics provides data-driven talent insights that
               improve business performance


                           SHL Talent Analytics benchmarks
                           customers’ talent pools against their
                           competitors and is built upon the largest
                           global database on the potential of
                           people to deliver organisational success.


                                  Answering the question:
                                “How good is my critical talent
                               compared to the marketplace?”


                                                             © SHL 2012
                                 6
So, there are analytics ....

 Descriptive ...

                    ... tells you where you’ve been




  Efficiency ...

               ... tells you about the time and cost
                                 of your processes

                                              © SHL 2012
                           7
... and Analytics


 Predictive ...

                    ... tells you where you’re going



 Effectiveness...

                  ... tells you what you will achieve
                            when you get there

                                               © SHL 2012
                            8
Taking people intelligence and turning
            it into strategic advantage



                     …can it be done?




                                 © SHL 2012
              9
A banking story

     1       The global view

    SHL’s benchmark comparisons are considered within the context of
    our global top talent benchmark…

    In this case, we will compare two large banking organizations
                                     SHL Banking & Finance Benchmark


                50




SHL Global
Top Talent      25

Benchmark




                 0




                                                                       © SHL 2012
                                        10
A banking story

     2       The industry view


     There is less “Leading & Deciding” in            There is more “Enterprising &
     Banking and Finance than there is in             Performing” in Banking and Finance
     the Global Benchmark                             than there is in the Global Benchmark


                                             SHL Banking & Finance Benchmark


                50




SHL Global
Top Talent      25

Benchmark




                 0




                                                                                  © SHL 2012
                                                11
A banking story

     3 The organisation view




                                       Bank A                Bank B                   SHL Banking & Finance Benchmark


             50




SHL Global
Top Talent   25

Benchmark




              0
                  Leading &   Supporting &   Interacting &   Analysing &      Creating &      Organising &   Adapting &   Enterprising &
                   Deciding   Cooperating     Presenting     Interpreting   Conceptualising    Executing      Coping       Performing




                                                                                                                                 © SHL 2012
                                                                     12
A banking story

     3 The organisation view

   Bank A was in the upper quartile globally
   for profits for 2010
                                                         Bank B was also in an upper quartile ...
                                                                   ... for customer complaints
                                       Bank A                Bank B                   SHL Banking & Finance Benchmark

             50




SHL Global
Top Talent   25

Benchmark




              0
                  Leading &   Supporting &   Interacting &   Analyzing &      Creating &      Organizing &   Adapting &   Enterprising &
                   Deciding   Cooperating     Presenting     Interpreting   Conceptualizing    Executing      Coping       Performing




                                                                                                                                 © SHL 2012
                                                                     13
SHL Talent Analytics

What’s in the SHL Database?
• 80+ million data points

      25 million every year

• 30 countries

• 37 industry sectors

• 31 business functions

• 5 job levels
Each customer engagement is based on a subset of this data depending
  on the clients talent-related questions……


                                                             © SHL 2012
                                   14
SHL Talent
     Evaluating effectiveness by candidate source                                                                                    Analytics
                                                                                                                                   can be used to
                                                                                                                                      compare
     • Direct candidates appear stronger on five dimensions1
                                                                                                                                 recruiting sources
     • Candidates supplied by agencies fall short of the benchmarks
       for Creating & Conceptualizing; Organising & Executing; and
       Enterprising & Performing2



                                                                                                                                 Direct Applicants
% Top talent                                                                                                                     Agency Sourced Applicants

                                                                                                                                 SHL Banking & Finance Benchmark

50
                                                                                                                    1
                                     1
                                                    1                1
                                                                                                                         2
         1
                                                                          2
25




                                                                                                                                 Note: Benchmark for all applicants against
 0                                                                                                                               the banking and finance industry globally.
       Leading &   Supporting &   Interacting &   Analyzing &      Creating &       Organizing &   Adapting &   Enterprising &
        Deciding   Cooperating     Presenting     Interpreting   Conceptualizing     Executing      Coping       Performing




                                                                                                                                         © SHL 2012
                                                                                   15
Capability profile through the                                                                                                    SHL Talent
                                                                                                                                             Analytics
         recruitment process                                                                                                              can be used to
                                                                                                                                             evaluate
          This recruitment process is screening out Leading &                                                                               recruiting
          Deciding and Enterprising & Performing strength…                                                                                    stages

          • Is the focus on acquiring talent that “delivers” high
            enough among recruitment decision-makers?1
          • The biggest step change is occurring in your
            assessment centres; look here first

Overall process effectiveness: Competency                                                                                         Applicants

                                                                                                                                  Invited to Assessment Centre

                                                                                                                                  Interviewed
% Top talent
                                                                                                                                  Hired
50
                                                                                                                                  SHL Banking & Finance Benchmark




25                                                                                                                        1
               1

                                                                                                                                 Notes: Benchmark for all applicants reaching each
                                                                                                                                 stage in the recruitment process against the banking
                                                                                                                                 and finance industry globally. Where bars increase
 0                                                                                                                               across stages, stronger talent is being acquired.
        Leading &   Supporting &   Interacting &   Analysing &      Creating &      Organising &   Adapting &   Enterprising &   Where the bars decrease across stages, the level
         Deciding   Cooperating     Presenting     Interpreting   Conceptualising    Executing      Coping       Performing      of talent is being reduced at successive stages.




                                                                                                                                                © SHL 2012
                                                                                      16
SHL Talent
         Leadership Effectiveness                                                                                                                      Analytics
                                                                                                                                                    can be used to
                                                                                                                                                        evalute
          • You have limited transformational leadership strength                                                                                     leadership
            in IT which will limit the impact of technology on the                                                                                     potential
            company strategy1

          • Probable leadership/succession gap is confirmed by
            this view

          • Your IT group is probably overly focused on processes
            and meeting targets2

Overall leadership potential                                                                                                                 SHL IT Leadership Benchmark
                                                                                                                                             IT Leaders

 At their best in a high profile role                                1            1          1   At their best in a role where they can
 where they can drive innovation                                                                 frame, lead and deliver company wide
 and change                                                    -3%         -11%       -17%       strategy, working closely with and
                                                                                                 influencing key stakeholders




                                                               -4%         -3%        -7%
                                        Transformational




 At their best when working in                                27%          6%         14%        At their best in a role responsible for
 a well defined role with clear                                                                  the implementation of processes and       Note: Benchmark for all IT hires against
 responsibilities and expectations                                                               the delivery of targets                   managers and professionals in IT functions globally.
                                                           Transactional                                                                   See Appendix for definitions of leadership potential
                                                                                                                                           implied by the 3x3 matrix




                                                                                                                                                          © SHL 2012
                                                                                                   17
SHL Talent Analytics Offering




             Online
           Application
                            Services Wrapper



          Insight Report

         Services Wrapper




                                               © SHL 2012
                                     18
On-demand benchmarking




                              © SHL 2012
                         19
Answering critical talent questions

SHL Talent Analytics provides rigorous and objective answers to
a broad range of talent-related questions, such as:



                “At which stage(s) of        “How does the calibre   “What is the bench-
                the recruitment              of my graduate          strength of my
                process am I losing          applicants compare to   succession pool
                my best candidates?”         the market?”            compared to the best
                                                                     in the marketplace?”



                “How strong is the           “How does my            “Where do I need to
                managerial talent I          leadership team stack   focus the development
                am recruiting                up against others in    of my managers to
                compared to industry         my sector?”             raise them above the
                sector benchmarks?”                                  industry standard?”




                                                                                © SHL 2012
                                        20
Thank You

ray.glennon@shl.com




                 © SHL 2012
 21

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Turning Talent Intelligence into Strategic Advantage

  • 1. April 2012 Turning People Intelligence into Strategic Advantage Dr. Ray Glennon, SHL, C. Psychol, AFBPsS © SHL 2012 1
  • 2. The CEO perspective: Talent is Critical Q. To what extent do you anticipate changes to any of the following areas of your company? 83% Talent Management Strategy “Talent is now at the top of the CEO Agenda with 83% of CEO’s anticipating making changes to their talent management strategy in 2011” PWC, Annual CEO Survey, 2011 © SHL 2012 2
  • 3. People Intelligence: Do you know your critical talent? “75% of companies do not have access to the talent data they need to make informed business decisions” “75% of companies have visibility into their defined business goals but only 21% know if they have the skills to execute it” Taleo, Talent Intelligence Report , 2011 © SHL 2012 3
  • 4. 27th Jan 2012 “Today almost all of the 70 million iPhones, 30 million iPads and 59 million other Apple products sold last years were manufactured in other countries. “Why can’t that work come home?”, President Obama asked Apple’s Steve P. Jobs at a dinner in California last Apple’s executives believe the February. vast scale of overseas factories as well as the flexibility, “Those jobs aren’t coming diligence and industrial skills back,” Mr. Jobs reportedly said. of foreign workers have so outpaced their American It is not just a matter of wages counterparts that “Made in the being lower outside the United U.S.A.” is no longer a viable an States…. option for most Apple products”. © SHL 2012 4
  • 5. Using data to get the most from your critical talent “If you and your head of HR haven’t recently discussed ideas for using data to generate a talent strategy that’s more closely linked to business results …it’s time to start.” How good is HR at using data to justify its case and drive change? Source: McKinsey 2011 “Question for your HR chief: Are Source: McKinsey Quarterly 2011 we using our people data to create value?” © SHL 2012 5
  • 6. What is SHL Talent Analytics? SHL Talent Analytics provides data-driven talent insights that improve business performance SHL Talent Analytics benchmarks customers’ talent pools against their competitors and is built upon the largest global database on the potential of people to deliver organisational success. Answering the question: “How good is my critical talent compared to the marketplace?” © SHL 2012 6
  • 7. So, there are analytics .... Descriptive ... ... tells you where you’ve been Efficiency ... ... tells you about the time and cost of your processes © SHL 2012 7
  • 8. ... and Analytics Predictive ... ... tells you where you’re going Effectiveness... ... tells you what you will achieve when you get there © SHL 2012 8
  • 9. Taking people intelligence and turning it into strategic advantage …can it be done? © SHL 2012 9
  • 10. A banking story 1 The global view SHL’s benchmark comparisons are considered within the context of our global top talent benchmark… In this case, we will compare two large banking organizations SHL Banking & Finance Benchmark 50 SHL Global Top Talent 25 Benchmark 0 © SHL 2012 10
  • 11. A banking story 2 The industry view There is less “Leading & Deciding” in There is more “Enterprising & Banking and Finance than there is in Performing” in Banking and Finance the Global Benchmark than there is in the Global Benchmark SHL Banking & Finance Benchmark 50 SHL Global Top Talent 25 Benchmark 0 © SHL 2012 11
  • 12. A banking story 3 The organisation view Bank A Bank B SHL Banking & Finance Benchmark 50 SHL Global Top Talent 25 Benchmark 0 Leading & Supporting & Interacting & Analysing & Creating & Organising & Adapting & Enterprising & Deciding Cooperating Presenting Interpreting Conceptualising Executing Coping Performing © SHL 2012 12
  • 13. A banking story 3 The organisation view Bank A was in the upper quartile globally for profits for 2010 Bank B was also in an upper quartile ... ... for customer complaints Bank A Bank B SHL Banking & Finance Benchmark 50 SHL Global Top Talent 25 Benchmark 0 Leading & Supporting & Interacting & Analyzing & Creating & Organizing & Adapting & Enterprising & Deciding Cooperating Presenting Interpreting Conceptualizing Executing Coping Performing © SHL 2012 13
  • 14. SHL Talent Analytics What’s in the SHL Database? • 80+ million data points 25 million every year • 30 countries • 37 industry sectors • 31 business functions • 5 job levels Each customer engagement is based on a subset of this data depending on the clients talent-related questions…… © SHL 2012 14
  • 15. SHL Talent Evaluating effectiveness by candidate source Analytics can be used to compare • Direct candidates appear stronger on five dimensions1 recruiting sources • Candidates supplied by agencies fall short of the benchmarks for Creating & Conceptualizing; Organising & Executing; and Enterprising & Performing2 Direct Applicants % Top talent Agency Sourced Applicants SHL Banking & Finance Benchmark 50 1 1 1 1 2 1 2 25 Note: Benchmark for all applicants against 0 the banking and finance industry globally. Leading & Supporting & Interacting & Analyzing & Creating & Organizing & Adapting & Enterprising & Deciding Cooperating Presenting Interpreting Conceptualizing Executing Coping Performing © SHL 2012 15
  • 16. Capability profile through the SHL Talent Analytics recruitment process can be used to evaluate This recruitment process is screening out Leading & recruiting Deciding and Enterprising & Performing strength… stages • Is the focus on acquiring talent that “delivers” high enough among recruitment decision-makers?1 • The biggest step change is occurring in your assessment centres; look here first Overall process effectiveness: Competency Applicants Invited to Assessment Centre Interviewed % Top talent Hired 50 SHL Banking & Finance Benchmark 25 1 1 Notes: Benchmark for all applicants reaching each stage in the recruitment process against the banking and finance industry globally. Where bars increase 0 across stages, stronger talent is being acquired. Leading & Supporting & Interacting & Analysing & Creating & Organising & Adapting & Enterprising & Where the bars decrease across stages, the level Deciding Cooperating Presenting Interpreting Conceptualising Executing Coping Performing of talent is being reduced at successive stages. © SHL 2012 16
  • 17. SHL Talent Leadership Effectiveness Analytics can be used to evalute • You have limited transformational leadership strength leadership in IT which will limit the impact of technology on the potential company strategy1 • Probable leadership/succession gap is confirmed by this view • Your IT group is probably overly focused on processes and meeting targets2 Overall leadership potential SHL IT Leadership Benchmark IT Leaders At their best in a high profile role 1 1 1 At their best in a role where they can where they can drive innovation frame, lead and deliver company wide and change -3% -11% -17% strategy, working closely with and influencing key stakeholders -4% -3% -7% Transformational At their best when working in 27% 6% 14% At their best in a role responsible for a well defined role with clear the implementation of processes and Note: Benchmark for all IT hires against responsibilities and expectations the delivery of targets managers and professionals in IT functions globally. Transactional See Appendix for definitions of leadership potential implied by the 3x3 matrix © SHL 2012 17
  • 18. SHL Talent Analytics Offering Online Application Services Wrapper Insight Report Services Wrapper © SHL 2012 18
  • 19. On-demand benchmarking © SHL 2012 19
  • 20. Answering critical talent questions SHL Talent Analytics provides rigorous and objective answers to a broad range of talent-related questions, such as: “At which stage(s) of “How does the calibre “What is the bench- the recruitment of my graduate strength of my process am I losing applicants compare to succession pool my best candidates?” the market?” compared to the best in the marketplace?” “How strong is the “How does my “Where do I need to managerial talent I leadership team stack focus the development am recruiting up against others in of my managers to compared to industry my sector?” raise them above the sector benchmarks?” industry standard?” © SHL 2012 20