TALENT MANAGEMENT & Succesion Management

Why Talent management is Important ?
• The things that wakes me up in the middle of the nights is not what might happen to the economy or what our competitors might do next, it is worrying about whether we have the leadership capacity and talent to implement the new and more complex global strategies
David Whitman, Chairman, President and CEO Whirpool Corporation

• Survey of 400 Fortune Companies revealed that :
– Identifying and developing leaders is the single most pressing issue in their companies – Only 8 % rated their company’s leadership as excellent – Nearly 50% rater their leadership capacity to be fair or poor
Conference Board DDI

Why Talent management Important ?(Cont’d)

• On average, organizations will lose

000 respondents.000 each time an executive role is filled with an external candidate Development Dimensions International Why Talent management Important ? (Cont’d) • Four in ten leaders fail within the first 18 months on the job . organizations will pay $1. 2/3 reported that their current leader displays behaviours that could derail his/her career • On average .• Among approximately 6.000.

knowledge. attitude. and drive. character. experience. It also includes his or her ability to learn and grow • There is no universal definition of an outstanding manager • Each company must understand the specific talent profile that is right for it .What is talent ? • Talent is the sum of a person’s abilities-his or her intrinsic gifts. skills. intelligence. judgment.

Boudreau & Peter M. John W. including those within the organization and those who might join the organization Beyond HR – New Science of Human Capital.What is talent ? • The resource that includes the potential and realized capacities of individual and groups and how they are organized. Ramstad .

leadership ability. entrepreneurial instinct. functional skills. communications skills. emotional maturity. and the ability to deliver results . the ability to attract and inspire other talented people.MANAGERIAL TALENT • Some combination of a sharp strategic mind.

promoted. and retained to optimize the organization’s ability to realize positive business outcomes in the face of shifting competitive landscapes and labor requirements. developed.• DDI defines talent management as the system in which people are recruited. Talent Management Definition .

More specifically …. . • Talent management is a business process that systematically closes the gap between the talent an organization has and the talent it needs to successfully respond to current and emerging business challenges..

THE WAR FOR TALENT surveys • To understand how companies build a strong pool of managerial talent . Helen Handfield-Jones and Beth Axelrod . develop. and retain the people in the top 200 managerial position and how they build a pipeline of younger talent that might one day move into more senior positions The War for Talent by Michaels.how they attract.

Workforce demographics are evolving. Employee expectations are also changing. The context in which we do business is more complex and dynamic. .WHAT’S DRIVING THE CURRENT EMPHASIS ON TALENT MANAGEMENT? • There is a demonstrated relationship • • • • between better talent and better business performance. Talent is a rapidly increasing source of value creation.

capital.Growing propensity to switch companies The Old RealityThe New Reality People need companiesCompanies need people Machines. andTalented people are the geography are competitivecompetitive advantage advantage Better talent makes someBetter talent makes a huge differencedifference Jobs are scarceTalented people are scarce Employees are loyal and jobsPeople are mobile and their are securecommitment is short term People accept the standardPeople demand much more package they are offered .

Differentiate and affirm your people . Weave development into your organization 1. Rebuild your recruiting strategy 1.A WHOLE NEW APPROACH TO TALENT MANAGEMENT 1. Embrace a talent mindset 1. Craft a winning employees value proposition 1.

B. is equally capableand C players .We affirm all our people.NEW WAY OF MANAGING The Old TALENT WayThe New Way HR is responsible for peopleAll managers. starting with the managementCEO. are accountable for strengthening their talent pool We provide good pay andWe shape our company. even our strategy to appeal to talented people Recruiting is like purchasingRecruiting is like marketing We think development happensWe fuel development primarily in training programsthrough stretch jobs. and mentoring We treat everyone the same. coaching. but and like to think that everyoneinvest differentially in our A. our benefitsjobs.

Old Mindset AboutNew Talent Mindset People A vague notion that ‘people areA deep conviction that better our most important asset’talent leads to better corporate performance HR is responsible for peopleAll managers are accountable managementfor strengthening their talent pool We have a two day successionTalent management is a central planning exercise once in apart of how we run the yearcompany I work with the people I inheritI take bold actions to build the talent pool I need STARTS WITH A TALENT MINDSET .

TALENT IS EVERY LEADER’S JOB • Establish the gold standard for talent • Get actively involved in people decisions deep within the organization • Drive a simple. probing talent review process • Instill a talent mindset in all managers throughout the organization • Invest real money in talent • Hold themselves and their managers accountable for strength of the talent pools they build .

REBUILD RECRUITING STRATEGY Old RecruitingNew Recruiting StrategiesStrategies Grow all your own talentPump talent in at all levels Recruit for vacant positionsHunt for talent all the time Go to a few traditional sourcesTap many diverse pools of talent Advertise to job huntersFind ways to reach passive candidates Specify a compensation rangeBreak the compensation rules and stay within itto get the candidates you want Recruiting is about screeningRecruiting is about selling as well as screening Hire as needed with no overallDevelop a recruiting strategy planfor each type of talent .

feedback.New approach to Development Old Approach toNew Approach to DevelopmentDevelopment Development just happensDevelopment is woven into the fabric of the organization Development means trainingDevelopment primarily means challenging experiences. peopleThe company owns the talent. coaching. and mentoring The unit owns the talent. don’t move across unitspeople move easily around the company Only poor performance haveEveryone has development needs development needsand receives coaching A few lucky people find mentorsMentors are assigned to every high-potential person .

RUN A ROBUST TALENT REVIEW PROCESS Traditional SuccessionRobust Talent Review Planning A half day session once a yearA full day on-site for each at corporate headquartersdivision Discuss possible successorsDiscuss quality of incumbents Review individualsReview individuals and the talent strength each unit. with real . candid debate No effort to calibrateDrive to a distribution of ratings assessment No action plans agreed toSpecific action plans written and followed up for each unit An annual paper exerciseAs important and intense as budget process. and discuss other issues such as retention or recruiting Polite. senatorial presentations Rigorous.

NEW PAY PHILOSOPHY Old Pay PhilosophyNew Pay Philosophy Pay for the jobPay for the person and the performance Job-scope and seniority driveValue creation drives pay pay Pay what others in the companyPay what the individual could get (internal equity)get elsewhere (market equity) Set a range and range and hireBreak the compensation rules within itto hire the right candidate .

What sort of talent are we going to need to shake up the status quo. Consumers will have choices.nesses. rejuvenate our brand.Talent Management (DDI’s view) • Best Practice #1: Start with the end in mind—your current and future business needs – “We are a global automobile manufacturer that has steadily lost market share. and give us the action-orientation required to turn things around?” – “We are a utility in the midst of deregula. How will the skills of our current talent fit with our new . On top of that. we are getting into new busi.tion.

force development activities. • Best Practice #3: You must know what you’re looking for—the role of success profiles. • Best Practice #4: Build a systematic and integrated approach to all work.• Best Practice #2: Talent management is Job #1 for senior leaders. • Best Practice #5: Talent management is much more than succession management – Effective talent management requires not only Talent Management (DDI’s view) .

• Best Practice #6: Clear distinctions are made between potential. • Best Practice #9: Talent management is all about putting the right people in the . and readiness. performance. Talent Management (DDI’s view) • Best Practice #7: Look at the team mosaic • Best Practice #8: Turn your leaders into talent managers.

High potentials stand out Talent .

TALENT MANAGEMENT ASSESSMENT TOOLS • Performance appraisal • Potential forecast • Measurement scales for performance and potential • Core/institutional competencies • Mapping and weighting competencies • Segmenting the Talent Reservoir • Employee and job demographics .

Talent Development Goal : Acceleration of HiPos in Leadership Talent Pipeline Executives Those who lead organizations Managers Those who lead businesses and people Accelerate Quality Internal and External Talent in Leadership Pipeline at All Levels Domain Experts Those who do not yet lead people and/or have technical focus Talent Pipeline Entry Level Entry talent – college recruits Talent .

Segmentation of Performance and Potential Grade Performance C A High • Give warning • Provide coaching • Consider if it appropriate job •Plan next move •Provide extra coaching A+ •Plan multiple moves •Ensure pay is sufficient Potential B •Keep in place A •Identify next development opportunity Low C •Manage out Low Performance High .

working with others.• THE CLASSIFICATION OF EMPLOYEE Superkeepers – Those employees who greatly exceed expectation – Demonstrated superior performance – Who have inspired others to achieve superior performance – Who embody the core competencies of the organization • Keepers – Those employees who exceed organization expectation • Solid Citizen – Meet organization expectation • Misfits – Employees who do not meet organization expectations for performance. and/or organization competencies .

commitment.  – High performers with the ambition to be treated as key talent – Has what it takes to grow into bigger. maturity/balance) – Demonstrates personal accountability and initiative – They can be found in the top 20 ranking OR in the 70 ranking due to their current objectives and situation • High performers = behavior + track record.• High potential High potential = behavior + track record + identification ambition + stretch. more senior roles in the organization (cognitive capacity. more complex. – Consistently demonstrates and embraces leadership values – Has a record over time of sustained high performance – Has what it takes to grow to their next role – domain expertise • Understand the difference between High Performers and High Potentials – Ambition and Stretch – Provide examples Talent . domain expertise.

William C Byham.PhD .HiPo Development Cycle Assessment & Planning 360 degree Survey + LPI IDP Selection Consistent Process Evaluation criteria Reward & Retain Meritocracy Recognize HiPo Talent Evaluate Performance Effectiveness PPR IDP progress Develop Differentiated needs Targeted development activities Talent Pipeline Studies in 1998 by the Hay Group showed that organization with better operating statistics are morelikely to have succession management programs – Page 30 Grow your own leader.

Sign up to vote on this title
UsefulNot useful