BERSIN & ASSOCIATES. Madeline Laurano, Principal Analyst September 2010 IN THIS CASE STUDY

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1 CASE STUDY BERSIN & ASSOCIATES Best Practices in Integrated Talent Management Mountain State Healthcare Alliance Selects and Implements a Talent Management System Madeline Laurano, Principal Analyst September 2010 IN THIS CASE STUDY FOCUS: TALENT STRATEGY WORKFORCE PLANNING PERFORMANCE MANAGEMENT LEADERSHIP DEVELOPMENT SUCCESSION MANAGEMENT COMPETENCY MANAGEMENT TALENT SYSTEMS Healthcare is one of the largest growth industries in the U.S. Consider these facts from the U.S. Bureau of Labor Statistics. 1 Ten of the 20 fastest-growing occupations are healthcare related. Healthcare will generate 3.2 million new wage and salary jobs between 2008 and 2018, more than any other industry, largely in response to the forecasted rapid growth in the elderly population. Most workers have jobs that require less than four years of college education, but health-diagnosing and treating practitioners are highly educated. The need for talent management in healthcare organizations is increasing, due primarily to greater competition for talent at every level, from registered nurses up to corporate executives. To attract and retain the highest-performing people, healthcare organizations must provide them with clearly visible career paths, opportunities for learning and development (L&D), and equitable performance review and compensation processes. To do this, many healthcare organizations are moving beyond uncoordinated talent management tactics based on manual processes and toward integrated talent management strategies powered by leading-edge automation technology. 1 Source: This material is licensed to TEDS for distribution only. BERSIN & ASSOCIATES SEPTEMBER 2010 LICENSED MATERIAL

2 Mountain States Health Alliance (MSHA) recently implemented an integrated talent management system that automates the entire employee lifecycle, including: Recruiting and selection; Succession planning and leadership development; Learning and development; Roles, tasks and competencies; and, Performance evaluation. This case study will examine: Business circumstances that drove the decision to reengineer the talent management process; Evolution of the talent management process at Mountain States Health Alliance over the past three years; The selection, implementation and effective use of a supporting technology infrastructure; Forward-looking talent management initiatives; Current and expected business impacts; and, BEST PRACTICE To attract and retain the highestperforming people, healthcare organizations must provide them with clearly visible career paths, opportunities for learning and development, and equitable performance review and compensation processes. Lessons learned and best practices from recent implementations. e 2

3 The Bersin & Associates Membership Program This document is part of the Bersin & Associates Research Library. Our research is provided exclusively to organizational members of the Bersin & Associates Research Program. Member organizations have access to the largest library of learning and talent management related research available. In addition, members also receive a variety of products and services to enable talent-related transformation within their organizations, including: Research Access to an extensive selection of research reports, such as methodologies, process models and frameworks, and comprehensive industry studies and case studies; Benchmarking These services cover a wide spectrum of HR and L&D metrics, customized by industry and company size; Tools Comprehensive tools for HR and L&D professionals, including tools for benchmarking, vendor and system selection, program design, program implementation, change management and measurement; Analyst Support Via telephone or , our advisory services are supported by expert industry analysts who conduct our research; Strategic Advisory Services Expert support for custom-tailored projects; Member Roundtables A place where you can connect with other peers and industry leaders to discuss and learn about the latest industry trends and best practices; and, IMPACT Conference: The Business Of Talent Attendance at special sessions of our annual, best-practices IMPACT conference. Workshops Bersin & Associates analysts and advisors conduct onsite workshops on a wide range of topics to educate, inform and inspire HR and L&D professionals and leaders. For more information about our membership program, please visit us at 3

4 TABLE OF CONTENTS Company Overview 6 Business Environment 6 Talent Management Organization 7 New Talent Management Process 8 Gradual Rollout 9 Step 1: Selection of Leaders 10 Step 2: Assessments 10 Step 3: Recommend Development 13 Step 4: Implement Development 14 President and CEO Succession Planning at MSHA 14 New Integrated Talent Management Process for All Employees 15 Technology Evaluation, Selection and Implementation 15 Evaluation and Selection Process 16 Choosing TEDS 16 Implementation Process 17 Management and Governance 17 Business Impact / Metrics 18 Reports 19 Looking Ahead 19 Lessons Learned and Best Practices 20 Lessons Learned 20

5 Best Practices 20 Conclusion 21 Appendix I: Topics for Discussion and Learning 22 Key Learnings 22 Ideas for Action 22 Questions to Consider 22 Appendix II: Table of Figures 23 About Us 24 About This Research 24

6 Company Overview Mountain States Health Alliance (MSHA) is a locally owned and managed nonprofit healthcare system formed after Johnson City Medical Center Hospital, Inc. acquired six Columbia / HCA hospitals in Northeast Tennessee in September Today, MSHA is integrated both vertically and horizontally, and is the largest regional healthcare system with 14 fully accredited hospitals operating at approximately $1.5 billion in net revenues. MSHA provides an integrated, comprehensive continuum of care to people in 29 counties in Tennessee, Virginia, Kentucky and North Carolina. Figure 1: Mountain States Healthcare Alliance at a Glance Year Founded: 1998 Revenues: Approximately $1.5 billion per year Employees: Approximately 9,000 total Headquarters: Johnson City, Tennessee Source: Mountain States Health Alliance, Business Environment Mountain States Health Alliance is an integrated healthcare delivery system, with a total of 14 hospitals, as well as 21 primary / preventive care centers and numerous outpatient care sites, including First Assist Urgent Care, MedWorks, Same Day Surgery and Rehab Plus. This large organization of 9,000 full-time employees had a succession planning policy in place for many years. Succession planning was a requirement of the Malcolm Baldrige business model adopted by MHSA, but the process was neither robust nor automated. The competencies and performance evaluations were also manually managed, with Microsoft Word documents and Excel spreadsheets used to record and track reviews. The largest issue was that there were no links or consistency between processes and records. MSHA s board of directors began driving the process to enlarge the talent management function in the late 2000s, when it realized that half a dozen KEY POINT MSHA was able to gain senior support for this initiative by articulating the need for succession planning. 2 Source: 6

7 key senior executives were approaching retirement-age eligibility, without a strong bench 3 of talent lined up to replace them. Hay Group, a global management consulting firm, was engaged to advise the board of directors on HR practices. The general conclusion of its analysis was that MHSA had a world-class executive team, with a powerful opportunity for improvement below it. The consulting firm recommended that MHSA have a separate and more clearly articulated succession planning process for high-level executives, as well as a more integrated, robust talent management process for all employees. The talent management process was to be supported by a state-of-theart technology infrastructure to allow for higher levels of efficiency and productivity, as well as better insights into identifying and solving talentrelated business problems. The ultimate goal would be to harness the power of the organization s talent for optimal impact and results. Talent Management Organization Mountain States Health Alliance has a highly centralized human resources function, with 95 percent of HR activities being planned and executed at the corporate level, including recruiting, compensation and benefits, development, and personnel action forms. Small HR departments at the facility level (e.g., hospital, critical care clinic, et al) handle day-to-day employee relations. All talent management and organizational development personnel report to the vice president / chief human resources officer (see Figure 2). BEST PRACTICE The talent management process was to be supported by a state-of-theart technology infrastructure to allow for higher levels of efficiency and productivity, as well as better insights into identifying and solving talentrelated business problems. 3 Bench strength refers to the capabilities and readiness of potential successors to move into key professional and leadership positions. 7

8 Figure 2: MSHA Human Resources Organization Chart Vice President / Chief Human Resources Officer Executive Assistant HR Director Washington County HR Director JMH HR Manager RCMC Director Benefits Compensation HR Manager SSH HR Director Corporate Retiremen t Plan Manager HR Manager SCCH Recruitment HR Manager JCMC HR Coordinator NSH HR Manager Washington County HR Assistant HR Assistant (2) Benefits Coor. Benefits Assistant HR Assistant MSHA Wellness Program MSHA Data Processing FTE s (3 FTE s) TEDS Overisght General Recruiter General Recruiter Sr. RN Recruiter RN Recruiter Lawson / Metrics Coordinator Workers Comp. Source: Mountain States Health Alliance, The corporate HR department is responsible for a total employee population of about 9,000 team members, which includes more than 200 physicians and 900 corporate employees. The 30-person group experienced a high volume of transactions in 2009, processing approximately 130,000 job applications and 1,100 new hires. New Talent Management Process To make the vision of the board of directors a reality, HR began developing a roadmap to streamline and automate workforce development functions, as well as align employee goals to corporate outcomes. It began with learning management and competency management, as the group also moved toward the implementation of other critical elements of integrated talent management. The six-member talent management committee consists of the CEO, four senior vice presidents, and the vice president and chief HR officer. The purpose of this committee is to ensure that MSHA has a consistent approach to the talent management process across the enterprise. In addition, the purpose of the committee is to identify potential team members for development. 8

9 To make the new talent management process easier to assimilate, the HR organization broke down the process into a series of five steps and seven deliverables, as detailed in Figure 3. Figure 3: Talent Management Steps and Deliverables Talent Management Development Steps Step 1: Initial discussion to identify the mission-critical positions and to refine MSHA s leadership competency model. Step 2: Talent assessment to rate individual candidates. Step 3: Talent review to slot individuals to jobs and assess risk. Step 4: Review succession plans by CEO, board, vice president of HR (and senior leaders, as needed). Talent Management Deliverables List of role requirements. Key competencies for leadership positions. Completion of individual assessments and high-potential 4 matrix. Completion of succession list by role and risk assessment. Succession plan. High-potential list. KEY POINT To make the vision of the board of directors a reality, HR began developing a roadmap to streamline and automate workforce development functions, as well as align employee goals to corporate outcomes. Step 5: Development planning for identified high potentials and successors. Individual development plans. Source: Mountain States Health Alliance, Gradual Rollout MSHA rolled out the integrated talent management process to different levels of the organization over time. The process initially covered the top executive team of approximately 50; these are mission-critical positions and key leaders, such as vice presidents and C-level executives. Approximately 400 employees at the director / manager level are being added in Ultimately, the automated talent management process will be applied to all 9,000 MSHA employees by June A high-potential employee is an employee who has been identified as having the potential, ability and aspiration for successive leadership positions within the company. Often, these employees are provided with focused development as part of a succession plan and are referred to as HiPos. 9

10 The initial rollout to the top executive team and senior-level managers followed a timeline with three basic phases: 1. Selection of key leaders and high potentials; 2. Talent assessments; and, 3. Leadership development. These phases were further broken down into four steps (see Figure 4). Figure 4: Management within MHSA STEP 1 Determine Mission Critical Positions and Key Leaders/ Hi-Potentials to include in Talent Management Program Refine MSHA s Leadership Competency Model Personality Behavioral Event Interviews Cognitive Ability STEP 2 Key Leader/Hi Pos Assessments against Role Requirements and Competency Model Organizational Climate Leadership Styles Talent Review with CEO, VP of HR, etc. 360 Competency Surveys STEP 3 Recommend Specific Developmental Opportunities STEP 4 Implement Leadership Developmental Programs Board / Constituent Communication Selection of Key Leaders and High Potentials Talent Assessment Leadership Development 8/09 8/09-9/09 9/ Source: Mountain States Health Alliance, Step 1: Selection of Leaders Determine mission-critical positions and key leaders / high potentials to include in the talent management program. This process was used to refine MHSA s leadership competency model, which feeds into Step 2. Step 2: Assessments Key leader / high potentials are assessed against role requirements and a competency model. The talent assessments currently include the following diagnostic tools but, in the future, these assessments could include other factors, such as personality, cognitive ability and behavioral event interviews. 10

11 360 Leadership Competency Survey This tool looks at the leadership competencies that each participant demonstrates with a variety of constituents. The senior leaders are rated via a MSHA-specific 360 survey assessment that is designed to measure the competencies needed by enterprise-level leaders, possessing strategic leadership responsibilities. The Executive Competency Portfolio is a 360-degree online tool that measures 11 key competencies critical to the effectiveness in senior manager or executive roles. The competencies (see Figure 5) are organized into four key areas: 1. Building commitment; 2. Driving for success; 3. Sharpening the focus; and, 4. Personal commitment. This tool is best used with senior-level managers, typically director-level and above. A target level is used for comparison from 360 survey results of truly outstanding executives from corporations. Figure 5: Competencies Measured in Developmental Scales Drive for Results 1. Wants to do job well Degree of Difficulty 2. Creates own measures of excellence 3. Improves performance 4. Sets and works to meet challenging goals 5. Makes cost benefit analyses 6. Takes calculated entrepreneurial risks Levels increase by degree of difficulty - sophistication of behavior Source: Mountain States Health Alliance,

12 Inventory of Leadership Styles Leadership styles measures the repertoire of a leader s approaches to address different management situations. Although managers face an unlimited range of managerial situations, research has shown that there are basically six leadership styles: Directive Style Immediate compliance; Visionary Style Providing long-term direction and vision for employees; Affiliative Style Creating harmony among employees; Democratic Style Building commitment among employees and generating new ideas; Pace-Setting Style Accomplishing tasks to high standards of excellence; and, Coaching Style Long-term professional development of employees. Research presented by the Hays Group convinced MSHA leaders that, of all the variables which impact the effectiveness of the work climate and the discretionary effort put forth by the group, leadership style has the biggest impact. The breadth of a manager s repertoire of styles determines his / her effectiveness. Managers gravitate toward styles that feel natural to them and may limit themselves to only those styles that come naturally. What feels natural is largely determined by the manager s individual competencies. ANALYSIS Managerial style refers to the pattern of behavior that an individual leader uses across the full range of management situations. Organizational Climate Survey This diagnostic tool is a report card on a leader s ability to create a highperformance organization. Organizational climate is an individual s perception of those aspects of his / her environment that directly impacts how well he / she can do his / her job. MSHA has enumerated six dimensions that describe organizational climate, as follows. Flexibility There are no unnecessary rules, procedures, policies or practices; new ideas are accepted easily. Responsibility Employees are given authority to accomplish tasks without constantly asking for approval. Standards Challenging but attainable goals are set for the organization and its employees. Rewards Employees are recognized and rewarded for good performance. 12

13 Clarity Everyone within the organization knows what is expected of him / her. Team Commitment People trust and cooperate with their peers to get the job done. Again, research presented by the Hays Group showed a direct link between organizational climate and an organization s performance. The chief HR officer believes that organizational climate is the closest thing to a profit and loss statement that monitors how well a company utilizes its human resource assets. Climate affects organizational performance through its influence on employee motivation. Organizational climate influences the discretionary effort and commitment of employees. Positive climates encourage and negative climates inhibit discretionary effort. Taken all together, these assessment tools feed into a leadership effectiveness model (see Figure 6) that also takes into account the company s culture and business context / strategy. KEY POINT Organizational climate is an individual s perception of those aspects of his / her environment that directly impacts how well he / she can do his / her job. Figure 6: MHSA Leadership Effectiveness Model MSHA Business Context and Strategy MSHA s Culture Individual Competencies Job Requirements Leadership Effectiveness Managerial Style Organizational Climate Organizational Performance Source: Mountain States Health Alliance, Step 3: Recommend Development The next step is to recommend specific developmental opportunities for leaders and high potentials. First, at the executive team-level, the talent 13

14 management committee meets to determine participants strengths and developmental opportunities. The individual participant is invited to meet with the committee to discuss these opportunities. Next, the learning department helps design individualized development plans to address opportunities, including opportunities for breadth and depth of leadership development. Step 4: Implement Development In the final step, the HR organization implements the leadership developmental programs. It addresses global developmental areas across senior leadership and high potentials, and also customizes development to address the specific needs of each leader or high potential. A periodic assessment of progress in developmental areas is conducted every six months. KEY POINT A periodic assessment of progress in developmental areas is conducted every six months. President and CEO Succession Planning at MSHA Succession planning for the president and CEO provides a microcosmic view of the talent management for the rest of the organization (see Figure 7). Figure 7: President and CEO Succession Plan Review Strategic Context Review Strategic Plan Begin Identifying Critical Success Factors Prepare initial succession planning timeline Prepare emergency backup succession plan Develop Profile of Future CEO Review Strategic Context Interview CEO, Members of the Board Prepare working role profile Review with the Committee What should be Preserved/ Changed? Finalize Succession Planning Process Timelines Budget Dollars for Process Search Type Search Firm Begin Search Process Finalize Profile of New CEO Exec Committee will oversee Search Build Candidate Pool Interview Candidates Evaluate Candidates Make CEO Selection Develop and Execute On-Off Boarding Plans NEW CEO STARTS Execute On-Board Plan / Review Performance Hire future Senior Leaders against Critical Success Factors Accelerate Development of Potential Internal Successors Determine if Internal Candidates exist Assess Final Candidates Make Official Announcements Continue Career Horizon Discussion with CEO Board / Constituent Communication Assess & Build Internal Talent CEO Succession Planning CEO Selection Process On & Off Boarding now ongoing months prior to retirement 18 months prior to retirement 12-9 months prior to retirement 6 months prior to retirement CEO Retirement 1-3 months after retirement Source: Mountain States Health Alliance,

15 There are two key objectives of the new proposed president / CEO succession planning process. Objective 1 Use assessment results to help the board and current CEO to make informed decisions on the evaluation of top internal candidates implications for future succession and preparation of candidates to mitigate their risks vis-à-vis role requirements. Objective 2 Address the following key questions. What are the core strengths among the senior leaders participating in the assessment process? Who has the potential to become CEO? Where are there skills gaps? What are the key individual development needs that they must address? What are the highest-priority risks to mitigate among candidates? New Integrated Talent Management Process for All Employees All employees at every level are now subject to a more integrated talent management process at MSHA. It starts with recruiting, since job postings and candidate selections are derived from competence associated with each position. Once hired, employee information is automatically entered into the TEDS talent management system, which includes performance evaluation, development plans, succession planning and compensation. BEST PRACTICE All employees at every level are now subject to a more integrated talent management process at MSHA. Technology Evaluation, Selection and Implementation The integrated talent management processes described in the previous sections require either a robust technology infrastructure or a massive human effort, necessitating thousands of hours of time and dozens of HR professionals. MSHA decided to invest in a streamlined, accountable, interactive and business outcome-based system that would result in improved individual and organizational performance. As mentioned earlier, the company had been using spreadsheets and documents for talent management activities. In addition, there were different systems for learning management, staffing and recruiting. The learning management system (LMS) had been purchased several years earlier and was not keeping up with market advances, while the license for the company s applicant tracking system was nearing expiration, making it an opportune time to begin looking for a new infrastructure. KEY POINT MSHA decided to invest in a streamlined, accountable, interactive and business outcomebased system that would result in improved individual and organizational performance. 15

16 Evaluation and Selection Process The CEO of MSHA approved the chief HR officer s decision to invest in a talent management system with a $500,000 commitment outside of the general operating budget. The HR leadership team and 13 hospital leaders formed a committee to evaluate the competing systems. The company s IT department was not involved in this three to four month evaluation process because MSHA was exclusively looking at on-demand solutions delivered according to the Software-as-a-Service (SaaS) application delivery model, which meant zero IT resource expenditures. Must-Have Features To start the selection process, the committee defined must-have features, which included the previously mentioned SaaS delivery model. Breadth and depth of reporting was another key feature for HR officials who were frustrated with years of manual reporting and data collection. The committee was also looking for a vendor with a reputation for excellent customer support in order to completely eliminate any reliance on internal IT resources. In terms of talent management suites versus point solutions, the committee was open to both approaches, but generally favored an integrated system. It found that some vendors claimed to have integrated applications but, upon further examination, it became clear that additional interfaces would be needed. In the case of one particular vendor, those interfaces drove up the cost of the product several-fold. The committee also considered several small talent management and L&D technology vendors, but did not feel the fit was right. MSHA is a large and highly complex organization with many connecting parts across multiple facilities. In this very matrixed organization in which people with similar skills are pooled for work assignments, one individual may have a single direct report and two indirect reports. Not many of the talent management systems evaluated were equipped to handle these types of situations. ANALYSIS We have found that more than 20 percent of companies are considering investing in talent management systems on one platform as opposed to point solutions. 5 Choosing TEDS Out of a field of more than a dozen vendors, MSHA selected TEDS People Resource Planning (PRP) system to deploy enterprise talent management. As part of its final vetting process, the selection committee spoke to reference customers, such as Verizon and Sandia Labs. In addition, the committee members also attended a TEDS user group meeting, at which 16

17 they heard other organizations talk about product strengths and areas for improvement. Perhaps the most important reasons that MSHA chose TEDS included the full integration of the seven talent management modules, and TEDS experience and the functionality within each module. The chief HR officer cites the fact that TEDS can have unlimited approvers for a requisition, whereas other talent management systems required significant customization to achieve the same functionality. A critical criterion for selection was MSHA s desire to have a genuinely close partnership with its talent management solution provider, rather than just a standard customer-vendor relationship. TEDS displayed a willingness to partner during the selection process and that partnership has only strengthened during the implementation. Implementation Process Fast startup is one of the expected benefits of the SaaS application delivery model and MSHA s implementation of the talent management system began within 30 days of the contract signing. In 2009, MSHA successfully implemented TEDS Learning on Demand, TEDS RTC Power (roles, tasks and competencies), Tuition Aid and TEDS Succession Management. TEDS Job Vision (recruiting and staffing) and TEDS Performance Impact were implemented in early KEY POINT A critical criterion for selection was MSHA s desire to have a genuinely close partnership with its talent management solution provider, rather than just a standard customer-vendor relationship. MSHA fully integrated its new talent management system with its existing Lawson HR information system (HRIS). An internal MSHA IT analyst handles building and maintaining the interfaces for the HR management system integration. The chief HR officer described a smooth integration process that now allows the talent management system to access the HRIS records for every employee to get demographics, compensation information and more. Additionally, employees can perform simple tasks, such as changing a home mailing address and using an online self-service module. Management and Governance The chief HR officer hired a new HR manager to own the talent management system and oversee the vendor relationship with TEDS, among 5 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates / Karen O'Leonard, July Available to research members at or 17

18 other responsibilities. Governance and oversight is provided by multiple committees as follows. Steering committees have been established for each talent management system module (e.g., LMS, applicant tracking, succession planning, et al). Each committee is comprised of the above-mentioned talent management manager, as well as representatives from the talent management committee, IT and one of the business lines. An operational committee, led by the talent management system manager, oversees the entire talent management system infrastructure. A strategic committee (comprised of MSHA s CEO, the CEO of TEDS and MSHA s chief HR officer) meets twice a year to set the strategic agenda for the talent management system. The chief HR officer generally makes recommendations for new ways to use the talent management system to increase the value of organizational talent. Business Impact / Metrics HR managers are measuring key performance indicators (KPIs) to evaluate the effectiveness of the talent management system. However, MSHA began implementing the first talent management system modules just 12 months ago, so few definitive results are available. Examples of KPIs are illustrated in Figure 8. Figure 8: MSHA s Key Performance Indicators for Its Talent Management System Module Application Tracking Succession Planning Key Performance Indicator Time to hire Percentage of internal promotions versus outside searches for new employees Available Measure Time to hire initially increased slightly from the base measurement, but is now coming down Not currently tracking internal promotions, but planned for 2010 KEY POINT HR managers are measuring key performance indicators (KPIs) to evaluate the effectiveness of the talent management system. Learning Management System System exhibits greater utility Example: Employees can engage in competencybased learning from home Source: Mountain States Health Alliance,

19 In general, the chief HR officer possesses a strong belief that the talent management system will pay for itself by saving hard dollars. As an example, he cites the HR department s use of Profile XT pre-hire assessment tools to screen potential workers, which have reduced first-year employee turnover from 38 percent to 17 percent, saving the company more than $8.5 million in direct and indirect costs. Reports Having all talent management data in a single database gives MSHA leaders the ability to understand their organization at a strategic level through detailed reporting. One report, for example, groups team members based on how they scored on assessments for a quick snapshot of performance across the system. A dashboard puts all team members data at the fingertips of managers, making it easy to drill down to the team member level. HR leaders can also mine that data for an accurate picture of their organization by viewing the current talents and abilities of their team members across the enterprise in real-time. This helps HR know if they need to train, outsource or hire new team members to achieve a business initiative. Looking Ahead BEST PRACTICE Having all talent management data in a single database gives MSHA leaders the ability to understand their organization at a strategic level through detailed reporting. Next year, HR plans to have TEDS installed on Apple s ipad to bring additional portability of talent management functions to the organization and its team members. The ipads will be used to administer competency tests in real-world clinical settings. These tests are initially conducted at the time of hire, and are then readministered annually. The hiring manager follows the new hire throughout the workplace and uses ipad to check off competencies (e.g., how to measure a patient s blood pressure) as they are performed. Information is sent wirelessly to the TEDS RTC Power module. Another planned initiative is the Healthcare Consortium for Talent Management. The chief HR officer has invited the HR leaders of other regional hospital systems to meet face to face, share information, and discuss issues related to talent management and healthcare. The invited companies are all Malcolm Baldrige National Quality Award winners, but not necessarily users of TEDS technology. 19

20 Lessons Learned and Best Practices The chief HR officer shared some important lessons learned and best practices that can be used by other organizations seeking to implement an integrated talent management system and processes across a common technology platform. Lessons Learned The Performance Evaluation module took the longest amount of time to implement for several reasons. In addition to the creation and tracking of the evaluations themselves, the module handles a comprehensive bonus plan system for all employees. The bonus plan is based on five different measures and starts at $500 for the lowest-level employees. HR managers had previously tracked the program using a Microsoft Access database, which had to be converted into TEDS data. Inputting the company s paper-based job competencies into the vendor s system proved to be an even larger undertaking. The chief HR officer admits that he and his team underestimated how hard it would be to convert the roughly 2,100 job descriptions and 45,000 competencies. Lots of cleanup was required because the old paper-based system could not look across systems. As a result, each hospital had a different working set of competencies. HR managers spent hours rationalizing the competencies and making all the language uniform, while a group of Kelly Services temps was hired to type the final sets of competencies into the talent management system. Best Practices In terms of best practices, the chief HR officer points to the fact that his team members knew exactly what they wanted in a talent management system before they began the process of evaluating products and technologies. This kept them focused and helped narrow the field of vendors quickly. MSHA structural governance of the talent management system also deserves special mention. The chief HR officer believes that much of his team s success was due to the heavy use of committees and oversight. Going forward, to ensure continued success and a long-lasting partnership with the vendor, a strategic committee comprised of leaders from both organizations will meet twice a year to discuss the vision, roadmap and learnings. BEST PRACTICE To ensure continued success and a long-lasting partnership with the vendor, a strategic committee comprised of leaders from both organizations will meet twice a year to discuss the vision, roadmap and learnings. 20

21 Conclusion Integrated talent management is quickly becoming a priority for any healthcare organization looking to attract and retain the highest performers. Through the selection and implementation of a leading talent management system, Mountain State Health Alliance was able to achieve its goal of automating the entire employee lifecycle from pre-hire to post-hire. Technology has enabled the organization to create a forward-thinking talent management process. 21

22 Appendix I: Topics for Discussion and Learning The following sections will provide you with considerations for sharing and implementing the best practices that were highlighted in this report. Key Learnings Below is a list of key learnings (the gems ) from the case study. 1. How Mountain States Health Alliance developed an integrated talent management process over the past three years; 2. What best practices were involved in the selection, implementation and effective use of a supporting technology infrastructure in talent management. 3. How MSHA developed forward-looking talent management initiatives. Ideas for Action Below is a list of actions that you can take in order to apply or implement the best practices highlighted in the report. These are some of the foundational elements that we highly recommend be in place inside your company in order to execute such a plan, process or program. BEST PRACTICE Leverage a consistent competency framework throughout your talent management processes. 1. Select and implement an integrated talent management system 2. Leverage a consistent competency framework throughout your talent management processes 3. Build a business case for investing in talent management Questions to Consider Below is a list of discussion questions that you can ask your team, colleagues and business leaders, which will help you to take the next steps 1. Would your organization benefit from one technology platform for all of your talent management needs? 2. What are your most immediate talent management needs? 3. What are the business circumstances driving your talent management initiatives? KEY POINT Build a business case for investing in talent management. 22

23 Appendix II: Table of Figures Figure 1: Mountain States Healthcare Alliance at a Glance 6 Figure 2: MSHA Human Resources Organization Chart 8 Figure 3: Talent Management Steps and Deliverables 9 Figure 4: Management within MHSA 10 Figure 5: Competencies Measured in Developmental Scales 11 Figure 6: MHSA Leadership Effectiveness Model 13 Figure 7: President and CEO Succession Plan 14 Figure 8: MSHA s Key Performance Indicators for Its Talent Management System 18 23

24 About Us Bersin & Associates is the only research and advisory consulting firm focused solely on WhatWorks research in enterprise learning and talent management. With more than 25 years of experience in enterprise learning, technology and HR business processes, Bersin & Associates provides actionable, research-based services to help learning and HR managers and executives improve operational effectiveness and business impact. Bersin & Associates research members gain access to a comprehensive library of best practices, case studies, benchmarks and in-depth market analyses designed to help executives and practitioners make fast, effective decisions. Member benefits include: in-depth advisory services, access to proprietary webcasts and industry user groups, strategic workshops, and strategic consulting to improve operational effectiveness and business alignment. More than 3,500 organizations in a wide range of industries benefit from Bersin & Associates research and services. Bersin & Associates can be reached at or at (510) About This Research Copyright 2010 Bersin & Associates. All rights reserved. WhatWorks and related names such as Rapid e-learning: WhatWorks and The High-Impact Learning Organization are registered trademarks of Bersin & Associates. No materials from this study can be duplicated, copied, republished, or reused without written permission from Bersin & Associates. The information and forecasts contained in this report reflect the research and studied opinions of Bersin & Associates analysts. 24