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Talent Engine - Discussion Guide
Talent Engine - Discussion Guide
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SHRM Splash Screen
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Featuring WAYNE CASCIO, PH.D.
The SHRM Foundation is pleased to present Fueling the Talent Engine – Finding and Keeping
High Performers, a DVD case study and discussion guide about how an integrated talent-
management strategy helps to provide a competitive edge in today’s business environment.
The focus of this case study is Yahoo! Inc., a leading provider of Internet tools, services, and
marketing solutions for businesses in the United States and internationally.
Fueling the Talent Engine – Finding and Keeping High Performers builds on the SHRM
Foundation’s critically acclaimed HR Role Models and HR in Alignment videos about what it
means for HR to be a strategic business leader, and how HR strategy can be aligned with
general business strategy. More than 150 colleges and universities are now using these videos
in their undergraduate, graduate and executive education programs. In addition, hundreds of
SHRM chapters and companies are successfully using them to share the wisdom, insights, and
examples of outstanding HR leaders and their practices in organizations today.
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The SHRM Foundation deeply appreciates the support of Yahoo! Inc. executives and staff who
gave so generously of their time to take part in this educational DVD. We extend special
thanks to Heidi Burgett and Libby Sartain from Yahoo!, to Joe Coppoletta and Carlo Gustaff,
whose outstanding direction and film editing brought this DVD to life, and to Myles Throop,
who prepared this discussion guide.
Finally Fueling the Talent Engine - Finding and Keeping High Performers would not have
happened without the inspiration, creativity and hands-on leadership of Wayne Cascio, Ph.D.
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SHRM Introduction
TABLE OF CONTENTS
OVERVIEW……………………………………………………………………………. 7
DISCUSSION QUESTIONS…………………………………………………………... 21
SHRM FOUNDATION………………………………………………………………... 70
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OVERVIEW
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Introduction
Fueling the Talent Engine – Finding and Keeping High Performers examines how an integrated
approach to talent management helps drive business results at Yahoo! Inc. Yahoo has shown its
business acumen by becoming a leader in the online-content market. It has been the focus of
numerous articles and reviews because of its dynamic management and its corporate culture,
which the company actively promotes to attract the best talent.
This video shows what Yahoo! does to become an employer of choice, and what it does to select,
orient, develop, reward, and manage top talent. It shows how senior executives use the concept
of managing talent as a central hub in the firm’s strategy
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Profile of Yahoo! Inc.
Yahoo! Inc. provides Internet services to users and businesses through the Yahoo! Network, and
a range of tools and marketing solutions for businesses in the Unites States and internationally. It
offers an array of communications services, including mail, messenger, calendar, chat, greetings,
clubs, and photos; and various commerce services, such as shopping, auctions, finance, and
travel; as well as content and media-programming services in various areas, including sports,
music, movies, news, and games through partnerships with various content providers.
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Profile of Yahoo! Inc.
with various Yahoo! services, as well as Yahoo! Fusion Marketing that unites its media, e-
commerce, direct marketing, broadcast, and communication tools. Yahoo! also has strategic
alliances with SBC Communications, Inc.; BT Group plc; Rogers Cable, Inc.; and Verizon
Communications, Inc. The company was founded by David Filo and Jerry Yang in 1994, and it is
headquartered in Sunnyvale, California.
Yahoo! has approximately 8,700 employees worldwide, and earned revenues of $3.6 Billion in
2004, up from $1.6 Billion in 2003. During the same period, net income rose from $238 Million
to $840 Million. Additionally, Yahoo!’s balance sheet grew from $5.9 Billion to $9.2 Billion.
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Discussion Guide
Wayne Cascio has written an informative list of discussion
questions that can be used with the Yahoo! case study. The
questions follow the topics of the DVD presentation and should
provoke discussion as well as reinforce key insights into how
Yahoo!’s strategy works and why HR is such an important partner
in its strategic development and success. The discussion questions
are intended as a starting point from which you can develop a
dialog about the effectiveness of talent-management practices in your own organization.
Wayne Cascio, Ph.D., is recognized as one of the foremost experts in the field of human resource
management. He recently became the first HR leader to receive an honorary doctorate degree from the
University of Geneva, Switzerland for his teaching and research in the HR field. Wayne has consulted
with more than 150 organizations on six continents, and has written 21 books, including best-selling
texts on HR management. Currently he serves on the the Boards of Directors of CPP, Inc., the
Academy of Management, and the SHRM Foundation.
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UNDERSTANDING THE TALENT-
STRATEGY FRAMEWORK
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The Talent-Strategy Framework
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ATTRACT
1 those you 3
want
PLAN who RECRUIT
and how the right
many people
TALENT
6 STRATEGY 4
The Fueling the Talent Engine – Finding and Keeping High Performers video is based on
understanding how strategic planning and execution work within an organization. Without this
fundamental understanding, it will be very difficult to appreciate how HR strategy is tied to the
overall organizational strategy.
The case study uses the Talent-Strategy Framework model on the previous slide to explain how
strategy works in an organization. Note how the talent-strategy is a circular process that
aggregates six distinct pieces into an overall strategy framework.
1) PLAN who and how many: An organization must have a plan about where its HR strategy
is going to be leading the company. The HR department must have clear and measurable
goals that are aligned with the overall corporate strategy.
2) ATTRACT those you want: Once a plan has been determined the HR department must
develop methods to attract the necessary quality and quantity of new hires. The strategies
should highlight the benefits of being an employee at the company.
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The Talent-Strategy Framework
3) RECRUIT the right people: In addition to attracting talent, it is often necessary for an
organization to actively recruit new talent. Many highly qualified individuals, which an
organization seeks, may not be looking for a new job, or be otherwise attracted to apply for
a position at you company. These people must be actively and directly recruited.
4) ASSESS them correctly: Once interest has been generated and there is a steady stream of
applicants, the company’s HR department must differentiate between unqualified
candidates, and those who can provide value to the company while being able mesh with the
company’s corporate culture.
5) DEVELOP them carefully: Simply finding talented individuals, and hiring them, is not
sufficient to have highly effective HR tactics. It is rare that an individual, no matter how
qualified, is a perfect fit for a given position. New-hire training is an essential part a talent
strategy. Additionally, as time passes, talent needs of a company will change and the skill
sets of its employees must be updated and developed appropriately.
6) RETAIN only those you want: Even with extensive selection practices coupled with
training and development programs, HR mistakes happen. It is necessary to continuously
evaluate employees and their motivations. Highly effective employees should be rewarded
while the lowest performers should be removed from the organization.
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YAHOO! CASE STUDY
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Yahoo! Case Study
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Summary
The Yahoo! video case study is an ideal educational resource for an undergraduate, graduate, or
executive education program, for HR staff training within companies, and for HR professional
educational seminars and programs. You have several options available for presenting the
Yahoo! case study. Besides the DVD video, we have provided many different slides from which
you can tailor you presentation, if you desire.
One option is to show the DVD first, followed by the PowerPoint slides, included in this
discussion guide, to provide a more in-depth understanding of the company and its business.
After reviewing the profile of Yahoo!, Inc. and discussing the key points of the Talent-Strategy
Framework, consider discussing the question slides with students or HR professionals. We have
used this approach successfully with graduate business students.
A second option might be more appropriate in an undergraduate HR course. For students with
little work experience, strategic HR alignment in the recruitment and retention of talent is a
difficult concept to grasp. Some students are not exactly sure which elements of strategy and HR
talent initiatives must be in aligned. Students probably understand that aligning HR strategy with
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Summary
corporate strategy is a good thing, but they may be uncertain of the payback potential that
effective talent management will provide. The Yahoo! case study provides an excellent example
of a high-performing company where a focus on talent management pays off in results.
As a way to set the stage for the DVD case study, you may want to start with a few PowerPoint
slides to introduce the company, what it does, and to provide a quick overview of what talent
management means. It would be helpful to walk through the Talent-Strategy Framework slide.
After this brief introduction, show the DVD. Then engage the class in a discussion of what
Yahoo! did that they thought contributed to effective talent management and what more they
could do in the future. You can select from the questions that follow to clarify what Yahoo!
does. You may want to discuss how recruiting, selection, training and individual performance
management contribute to talent management and alignment. These are all important issues in
an HR course.
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Summary
You might want to ask other questions such as: How does the company gain from achieving
strategic HR alignment through its talent management practices? What are the obstacles that
make the achievement of effective talent management practices difficult? What must HR
measure to achieve effective talent management practices? How would students like to work for
Yahoo!? Why don’t more companies have the types of talent management strategies that Yahoo!
has?
The Yahoo! case study will certainly stimulate discussion and challenge students whether they
are in an HR or business program, as well as HR professionals, to think through the benefits of
HR talent strategies being aligned with the overall organizational strategy, and how to achieve
effective talent management strategies.
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DISCUSSION QUESTIONS
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Q. What does talent management
mean, and how is it viewed at
Yahoo!?
A.
Talent management means considering an employee’s
talents during hiring, as well as that employee’s career
development; and analyzing why people leave a company.
Yahoo considers talent management to be central to its
corporate strategy.
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Q. How is talent incorporated into the
Yahoo! business model?
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Q.
How does Lloyd Braun, SVP of
Media, describe outsiders’ reactions
to Yahoo!’s corporate culture?
A.
traditional media business, within two or three minutes
they are saying “I’ve never heard you like this, I’ve never
seen you like this.” Like they’re ready to join right then
and there. Even people who are not employees of Yahoo!
are easily affected by the energy that they see and feel in
the culture of Yahoo!; it is this energy that helps the
company to attract and retain highly qualified individuals.
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How does Lloyd Braun illustrate
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Q.
What does a systematic process of
managing talent imply?
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Q.
What are some of the premium
services, for which Yahoo!’s
customers pay?
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Q.
In 2004 Yahoo!’s sales increased 120%,
while its net profit increased 253%. How
did Yahoo!’s business model provide for
such dramatic growth?
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Q. How has Yahoo! managed talent
during its high growth?
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Q. How does Yahoo! Promote the idea
that high performance is valued?
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Q.
How do Yahoo!’s business model
and corporate culture reward
successful employees?
Lloyd Braun says that on his first day he was taken under
A.
the wing of human resources, meeting with various people
who taught him the business. “The order of the presentation
was so smart … they were laying building blocks … both in
terms of people to meet and what they did, and then in terms
of what the company did.” By making a concerted effort to
have a formal orientation for new hires, Yahoo! aides their
ability to become productive employees quickly.
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According to Phu Hoang, VP of
A.
people that Yahoo! hires have “immense talent to come up
with that innovation; things that you can’t think of, that’s
why you want them in here.” Phu explains that the types of
people that drive Yahoo! would not perform well if the
company did not give them enough freedom. At Yahoo!,
“brilliant” employees are guided toward the corporate
vision, then given free reign to find the best path to that
goal. 36
Q.
How has the scope of the jobs of
Yahoo!’s employees changed as the
company has grown?
Early in an entrepreneurial situation there are few
A.
employees who must perform many varied job functions.
As Yahoo! grew, jobs became more specialized and the
company transitioned to employees with more vertical
expertise. Today Yahoo! employs many very specialized
and highly regarded people. Sue Decker says, “people are
getting to work with stars in their areas … we have some of
the nation’s leaders in all [functional] areas.”
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Q. Aside from a healthy corporate
culture, how does Yahoo! reward
its employees?
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Q.
How does the Yahoo! “Superstar”
program reward employees and
show that they are valued?
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Q. How does Libby Sartain, Chief
People Officer, view turnover?
A.
effectively analyze and manage their turnover. Libby
Sartain segments the turnover at Yahoo! into voluntary,
regrettable turnover, and involuntary or unregrettable
turnover. By having a regrettable-turnover goal of less than
5% annually, Yahoo has created a program that anticipates,
manages and reduces the loss of essential talent.
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Q. How does Yahoo!’s corporate
culture reduce turnover?
A.
continuously to create new challenges for themselves. This
reduces repetitiveness and increases job satisfaction. Lloyd
Braun says, “they don’t have to leave in order to get
challenges and opportunities.” Yahoo!’s managers excite
employees with the corporate vision, but individual
employees are able to redirect their own energies and to
work on new challenges in reaching that vision.
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With the increasing competitiveness
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FIVE LESSONS FOR
ANY ORGANIZATION
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Lesson 1
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Lesson 2
Develop a comprehensive
approach, as well as a
commitment to track, develop,
reward, and keep top talent.
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Lesson 3
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Lesson 4
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Lesson 5
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SNAPSHOT PROFILES OF
PARTICIPANTS IN
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Lloyd Braun
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Heidi Burgett
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Wayne Cascio
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Susan Decker
Decker holds a Bachelor of Science degree from Tufts University, with a double major in
computer science and economics, and a Masters of Business Administration from Harvard
Business School. She also received the designation of Chartered Financial Analyst in 1989 and
served on the Financial Accounting Standards Advisory Council (FASAC) for a four-year term,
from January 2000 to January 2004. Decker was appointed to the board of directors of Costco
Wholesale in October 2004 and of Pixar Animation Studios in June 2004. 54
Loree Farrar
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David Filo
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Phu Huang
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Carol Mahoney
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Ken Perluss
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Libby Sartain
Libby Sartain is Senior Vice President, Human Resources and
Chief People Yahoo. With more than 25 years of experience in
human resource management, Libby Sartain is responsible for
leading Yahoo! Inc.'s global human resources efforts and
managing and developing the human resources team. She also
focuses on attracting, retaining, and developing Yahoo!'s
employees who promote and strengthen the company culture, as
well as represent the powerful Yahoo! brand.
Prior to joining Yahoo! in August 2001, Sartain was "vice president of people" at Southwest
Airlines. An employee of Southwest Airlines since 1988, Sartain managed a staff of 300 and led
all human resources functions at the airline, including employment, training, benefits and
compensation. She also played a key role in developing an employment brand strategy, which
helped double employee growth in six years.
Sartain also served as chairman of the Society for Human Resource Management and was named
fellow of the National Academy of Human Resources. Sartain holds a B.A. degree in business
administration at Southern Methodist University and received her M.B.A. from the University of
North Texas. 60
Stephanie Tate
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Cheryl Van
Cheryl Van is Vice President, Talent Acquisition, at Yahoo! and
is responsible for helping to create a more efficient process of
talent acquisition and development at Yahoo! Prior to joining
Yahoo!, Cheryl was the Vice President of Human Resources at
Critical Path. Previous to Critical Path, she served as the Vice
President of Employment and Development at Visa International.
Cheryl holds Bachelors degrees in Communication Studies and
Sociology from the University of California at Santa Barbara and
a Masters of Human Resources and Organization Development
from the University of San Francisco.
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Jerry Yang
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HRCI CERTIFICATION:
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HRCI Certification
The Human Resource Certification Institute (HRCI) is the credentialing organization founded by
the Society for Human Resource Management (SHRM) to promote the establishment of
professional standards both domestically and globally. HRCI recognizes HR professionals who,
through demonstrated professional experience and the passing of a comprehensive exam, have
met HRCI’s requirements for mastering the HR body of knowledge.
HRCI offers two levels of professional certification: the Professional in Human Resources
(PHR) and the Senior Professional in Human Resources (SPHR). Both exams are generalist (i.e.,
they assess the functional areas of the HR field) but differ in terms of focus and the cognitive
level of questions. PHR questions tend to be at an operations/technical level. SPHR questions
tend to be at the strategic and/or policy level.
In 2004, HRCI offered the first international certification examination for HR professionals
working in organizations with facilities and employees around the globe. The Global
Professional in Human Resources (GPHR) meets a major need in the profession today as more
U.S. based HR practitioners have multinational accountability.
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HRCI Certification
•Strategic HR management
•Organizational effectiveness and employee development
•Global Staffing
•International assignment management
•Global compensation and benefits
•International employee relations and regulations
Today, over 60,000 HR professionals have either SPHR or PHP certification after their names.
For more information, please visit the HRCI Web site: www.hrci.org.
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SOCIETY FOR HUMAN RESOURCES
MANAGEMENT
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HR: Leading People, Leading Organizations
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HR: Leading People, Leading Organizations
Founded in 1948, SHRM currently has more than 500 affiliated chapters
within the United States and members in more than 100 countries. For more
information visit SHRM Online at www.shrm.org.
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SHRM FOUNDATION
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SHRM FOUNDATION
The SHRM Foundation funds strategic research in the areas of HR Measurement and HR
metrics, the Impact of Technology, Global HR and the Changing role of the HR Professional.
Instructions for submitting a grant proposal (for up to $50,000) are available on the SHRM
Foundation website (www.shrm.org/foundation).
The SHRM Foundation board of directors reviews proposals three times each year (March, June,
and November). Twelve research projects are currently underway. More than 85% of SHRM
Foundation research projects completed since 1998 have resulted in a published article, book, or
major conference presentation.
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SHRM FOUNDATION
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