Debunking 4 Myths in Talent Management

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1 Debunking 4 Myths in Talent Management Webinar conversation on March 10, 2015 Webinar Objectives 1. Define terms 2. Apply data and analytics to your business story 3. Debunk 4 Myths in Talent Management a. Talent is easy to identify and assess b. Talent competencies are static c. Statistics can t be trusted; Statistics deceive d. Consultants add value 4. Determine your next steps Your Objectives/ Expectations 1. What do you measure? 2. What would make this webinar outstanding for you? 3. What would make this webinar outstanding for your organization? 1

2 Intro to Doug Gray VP of Consulting Solutions at The Work Institute PhD student in Organizational Leadership Consultant since 1997, author, speaker, executive coach Talent Management- Overview $6 trillion market in U.S. corporations labor expenses $15 billion market in HR technology software In 2014 the top 50 HR technology deals were more than $560 million IBM acquired Kenexa- talent software Linked In acquired Bright- employee matching Skillsoft acquired SumTotal - Learning Management System (LMS) Greatest expense for most companies is people/ payroll- from 30-60% of gross revenue- and 100% manageable The #1 concern of executives is Talent Management; however, only x% invest in Talent Management Definitions Talent Management = Human Capital: The costs and benefits of your people (financial view) The strengths and capacity of your people (psychological view) Behaviors designed to attract, develop and retain people (organizational view) The art and science of using information to make decisions that improve business value and increase the probability of reaching business goals (strategic view) 2

3 Definitions Talent Competency: Sets of desired behaviors Examples: 1. Communication skills for sales people 2. Analytical skills for accountants 3. Risk Taking, Business Focus, Determination for Inc 500 CEO s Definitions Consulting: A process designed to improve a client s condition Results represented by 1) new value, 2) objectives met and 3) validated by key metrics Examples: 1. A need for expertise (medical, legal, business, etc.)? 2. A need for recommendations (referral, data, perspective, etc.)? Definitions Evidence - Based Consulting: A process that uses validated data to make informed decisions. How do you decide to make: 1. A big investment? 2. A hiring decision? 3. A business decision (operations, strategy, sales, etc.)? 3

4 Improved Decision Making Start with Valid Data Quantitative & Qualitative Internal & External Use all Resources and Expertise Best practices Assessments Consulting Analyze Impact Effectiveness Efficiency Outcomes Perceived Current State Needs Assessment Future State Solutions Implementation Outcomes GOAL: Make smarter evidenced-based decisions from data to action What is your Story? 1. Beginning Situation/ Context What information is available? Missing? How do we gather data? 2. Middle Solutions/ Options How do we solve the problem? Connect the dots? 3. End Results/ Impact How do we measure impact? Example 1- Costs of Talent Management Technology Company Gross revenue $3,000,000 N = 10 employees at $80,000 = $800,000 Costs 800,000/ 3,000,000 = 27% = very low Manufacturing Company Gross revenue $3,000,000 N = 40 employees at $60,000 = $2,400,000 Costs 2,400,000/ 3,000,000 = 80% = very high Your Company Gross revenue $ N = employees at $ = $ Costs / = % 4

5 Example 2 Example 2 Objectives Achieve operating income of 9.5% Double store count to 2,100 by 2018 Increased focus on private label brands Strategic approach to pricing price optimization Continue to improve systems and logistics Continuous improvement process Tractor Value System (customer focus and expense reduction) Example 2 Issues & Challenges Economy Competition Vendor relations Customer satisfaction Seasonality 5

6 Example 2 Learning Objectives Align learning to support TSC business objectives and prepare organization for continued growth and success Improve employee core competencies Launch electronic learning to support TSC ILT efforts and gain greater retention in learning Create customized management training curricula Improve transitional process for employees promoted from peer to boss Example 2 - Leadership Development Process Assess Organizational Needs Evaluate Next Steps Assess Individual Needs Analyze Impact of Program Design and Implement Program Example 3- Uncommon Technology Your data is available through TWI s secure website 24x7. Unlimited report generation in multiple modes Data can be accessed by an unlimited number of users, at no additional cost Client controls the security and privileges for all user accounts. 6

7 Example 3- Turnover Data Annual Cost of Turnover : $71,401,547 15% Reduction in Turnover would result in savings of $10,710,232 Example 3- Predictive Data Measures: Data Type How data are collected Speed to competency Time in days for new hire/newly promoted to demonstrate competency with job tasks Determined by supervisor of the new hire/ newly promoted; captured in the Talent Management System Descriptive data Average amount of time to demonstrate competence; bar charts +/- Predictive data ANOVA: compare across business units or levels Example 3- Leadership Development Metrics Efficiency Effectiveness Outcomes Define metrics How do we select leaders? How do we assess strengths and gaps? What options exist for controlling costs? Performance impact How do we know that leaders developed desired knowledge and skills? What competencies increase bench strength and succession planning? Business improvement How does this LD program influence business metrics? Based on this data, how can we predict expenses? 7

8 What is your Story? (2 of 2) 1. Beginning Situation/ Context What information is available? Missing? How do we gather data? 2. Middle Solutions/ Options How do we solve the problem? Connect the dots? 3. End Results/ Impact How do we measure impact? 4 Myths Myth #1:Talent is easy to identify and assess I d rather have a lot of talent and a little experience, than a lot of experience and a little talent. John Wooden, UCLA basketball coach, plus 8

9 Fact #1:Talent Assessment is an art and a science 9-Box Talent Assessment Myth #2:Talent competencies are static We can train anyone to do this job. Sample Competencies 1. Customer Focus 2. Emotional Intelligence 3. Business Acumen 4. Communication Skills Self rating Manager rating Recommended coaches Action Steps 9

10 Fact #2:Talent competencies vary organizationally Sample Competencies Customer Focus How Measured Customer Satisfaction Surveys, Sales data, Referrals How Developed Training, observation, mentoring, coaching How Rewarded Spot bonus, promotion, awards Notes John was reassigned to a new region on Fact #2:Talent competencies vary individually Competency Map for Joe Bright on Current rating (1-10) Manager s Review Knowledge/ Skills/ Abilities Recommendations 1. Customer Focus 5 On Jennifer Star stated needs development in 4 of 11 areas on IDP Friendly, likes others, impatient, 3 customer complaints in 19 mos Consider site rotation, mentoring, coaching, training in customer service, video role plays with feedback session, or reassignment Myth #3:Statistics can t be trusted 10

11 Fact #3: Statistics inform Myth #4: Consultants add value Fact #4: Are your Consultants? Evidence Based Experts Metrics Client Needs Customized Solutions Technology Trustworthy 11

12 Next Steps Contact Doug Gray or call for a complimentary, confidential conversation about your personal or professional story at Share these slides broadly Sample the complimentary Manager s 180 TM Scorecard as our gift. Our Recent Clients Include: Contact Information Doug Gray, PCC VP Consulting Solutions mobile The Work Institute 1620 Westgate Circle, Suite 100 Brentwood, TN Toll Free: Phone:

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