The Talent Management Framework

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1 The Talent Management Framework Talent-Management and Leadership-Development in Europe Wachstum fördernde HR-Arbeit Manage the Change Symposium 29./30.September M COE Talent Management Europe,Middle East & Africa Dr. Günther Böllert

2 Talent Management Framework Overview of the new 3MTalent Management Framework Synopsis of Guiding Principles that drive Talent Management Detail on Talent Management Framework: 1. Demand Planning 2. Talent Requirements 3. Talent Development 4. Talent Review 5. Talent Acquisition 6. Performance Management and Rewards

3 The Talent Management Framework provides 3M with a systemic and integrated approach to managing talent Strategic Plan Demand Planning Number, type and quality of talent needed 1 3 Talent Development Strategy and tactics to assess and develop current and next generation leaders 6 Performance Management and Rewards Reinforcing processes that create accountability 2 Talent Requirements Talent Review Talent portfolio management and decision process Talent Acquisition Branding, sourcing and staffing strategy 4 5

4 This approach will be grounded in five Guiding Principles (linking mechanisms) 1 Talent will be managed at the nexus of our business: Countries, Businesses and Functions 2 Talent will be managed as a portfolio of assets: It will be reviewed at both an individual and organizational level 3 Application of the Talent Management Framework will focus on strategic and core roles within the organization 4 We will leverage current Talent Management processes and make necessary improvements to more effectively manage our portfolio of talent at the nexus 5 Talent development will be important in all aspects of talent management

5 Talent will be managed at the Nexus of Countries, Businesses and Functions, with clear decision rights 1 Talent requirements for critical segments will be defined by the function to ensure consistency in standards across similar roles Talent needs will be defined by Businesses and Countries to ensure enterprise-wide capability requirements are met Talent will be reviewed at the Country level to ensure assessment of talent pools where the pool is most likely to be shared Talent will be managed at the nexus to ensure that all talent decisions are grounded in each of the three perspectives and needs Detailed decision rights and process owners will need to be determined Functions NEXUS Country Businesses 3M is a matrix organization. Talent decisions need to be managed similar to other organizational decisions (financial, operational, marketing, etc.) at the segment nexus.

6 Talent will be managed as a portfolio of assets: it will be reviewed at both an individual and organizational level 2 Reviews enable calibration of perspectives on talent requirements, performance, development and potential Individual and organizational views are used to measure and manage talent. These views enable 3M to understand its current capabilities for comparison against its future talent requirements to assess talent gaps Individual View Organizational View Actions/Decisions Performance strengths Development needs Skills/Capabilities Experiences Career trajectory Current talent pool strength Pipeline strength Future talent requirements Hit rates Top talent retention C player management Sourcing strategies ILLUSTRATIVE Performance ratings Job/assignment changes Cross unit moves Compensation changes Promotions, demotions Exits Strategic hiring Coach/mentor assignments

7 Application of the Talent Management Framework will focus on strategic and core roles within the organization 3 Talent Segment and Value Strategic Critical to driving long-term competitive advantage, with specialized skills or knowledge Potential Strategic Action Core The Engine of the Enterprise, unique to the company and core to delivering on its products and/or services Requisite Cannot do without, but whose value could be delivered through alternative staffing strategies Non-Core Talent whose skill sets no longer align with the company s strategic direction

8 We leverage current Talent Management processes and make necessary improvements to more effectively manage our portfolio of talent at the nexus 4 Functional Tier Reviews used as a building block Stronger focus on fact-based assessment and development of talent Joint responsibility for Businesses, Functions and Countries

9 Talent development will be important in all aspects of talent management 5 Development is: A joint responsibility of Businesses, Functions and Countries Development needs to focus on proficiency gaps and drive processes for: Roles: What segments require development and what type? Individuals: What individuals require development and what type? Management will be required to communicate development opportunities to employees, but employees will be ultimately accountable for ensuring their own development takes place

10 Talent Management Recommendations 1. Demand Planning 2. Talent Requirements 3. Talent Development 4. Talent Review 5. Talent Acquisition 6. Performance Management and Rewards

11 Talent Management at 3M: Demand Planning Purpose: To determine the number and type of talent needed to execute on strategy, the current gap between what we have and what we need and the actions required to close these gaps Desired Outcomes: Understanding of current and future strategic and core roles Insight into how many and what type of talent is needed Insight into how portfolio dynamics affect training and staffing needs Insight into the gaps between what we have and need, including training and staffing Insight into the prioritization of different gaps Strategic Plan Demand Planning Talent Development Insight that informs HR and Businesses on the actions necessary to close gaps Performance Management and Rewards 2 Talent Requirements Talent Review Talent Acquisition 4 5

12 Demand Planning links directly with the strategic planning process to ensure its relevancy and impact 1 Strategic Plan and Objectives Determine the type of talent required to execute the Business strategy Business Strategy and Operational Objectives 2 Determine the net number of people required over the term of the strategic/ Business plan HR/Line Operating Plan and Talent Planning Processes Identify actions necessary to align the talent and HR with the Business Identify and prioritize portfolio gaps (+/-) 4 3 The key input into this process is your strategic plan. A key output of this process will be information that informs your annual operating plan.

13 Talent Management at 3M: Talent Requirements Purpose: To identify a clear set of accountabilities, responsibilities, performance metrics, competencies and required experiences for identified strategic and core roles Desired Outcomes: Strategic Plan Demand Planning Clear and consistent expectations of each strategic and core role Common language for assessment, development and measurement of talent Talent Development Foundation for talent development, assessment/review, acquisition, performance management, reward and deployment decisions Performance Management and Rewards 2 Talent Requirements Talent Review Talent Acquisition 4 5

14 Talent requirements serve as the hub for all talent management decisions Individual Development Compensation Performance Management Talent Requirements Promotion and Assignment Succession Planning Selection Internal External Critical to the success is the use of valid talent requirements in making key talent decisions.

15 Talent requirements are defined across four key dimensions for strategic and core roles Example: Derived from 3M strategy, accountabilities and responsibilities 2. Performance Metrics Market share Cost savings Revenue growth Defined for each role 4. Critical Experience Set International Integration/divestiture Cross-Business exposure 1. Key Accountabilities Turn-around and Responsibilities Common, practical definitions for each critical role built from Leadership Attributes or current competency frameworks 3. Critical Knowledge, Skills and Abilities Core Skills Business Skills Mindsets

16 Talent Management at 3M: Talent Development Purpose: To identify and map experiences needed to grow exceptional talent, enhance current effectiveness and prepare talent for future roles; to create and implement processes and tools to determine specific developmental actions that are most relevant to Business and individual needs; and to improve leadership capability to groom and grow the next generation of talent Desired Outcomes: Strategic Plan Demand Planning Clear line of sight to future roles in HR and roadmap of on-the-job applied learning, formal mentoring and coaching, targeted training and self-study experiences to ensure effectiveness within current roles and optimize high potential development Improved ROI of time and money spent on talent development Talent Development Performance Management and Rewards 2 Talent Requirements Talent Review Talent Acquisition 4 5

17 Learning experiences provide a foundation for employees and managers to create and implement meaningful development plans 1. Training and Education: Participate in either a formal role-related training course or educational courses and programs offered by universities and institutes 2. A New Assignment/New Perspective: Take on a new project assignment within your current department or role and/or approaching your current role with a new outlook or perspective 3. Rotation: Take on a new project assignment in another department or role. This may be part of a formal job rotation program and/or rotation outside of 3M with strategic partners or suppliers 4. Expanded Role: Expand the scope of your current role. This may include the enlargement of current tasks and responsibilities or taking on additional extra-role duties such as committees or task forces 5. Mentor/Coach: Request the assignment of a formal or informal 3M guidance based on similar experiences and situations 6. Self-Study: Initiate learning through outside channels mentor or coach who provides personal and professional, including reading Business and industry publications, attending professional conferences held by external vendors and seeking other information from subject matter experts

18 Talent Management at 3M: Talent Review Strategic Plan 3 4 Talent Development 2 Talent Review 1 Demand Planning 6 Talent Requirements 5 Purpose: To periodically assess and review the depth and breadth of the 3M talent pipeline including the identification of key gaps in the pipeline based on Business strategy/goals and action plans to close them Performance Management and Rewards Talent Acquisition Desired Outcomes: Portfolio of talent actively managed as an asset to ensure a predictable pipeline of talent for key role segments Rollup at Country level and across Businesses to determine if talent is fungible Prevent turnover with top talent and actively manage turnover of low performers

19 Talent Management at 3M: Talent Acquisition Strategic Plan 3 4 Talent Development 2 Talent Review Purpose: Identify and execute on a value proposition that helps external talent discover the value 3M provides its employees and the potential that exists within the organization 1 Demand Planning 6 Performance Management and Rewards Talent Requirements Talent Acquisition 5 Desired Outcomes: Compelling value proposition shared consistently by recruiters (3M and outsourced) with candidates across the world Understanding of geographical acquisition capabilities and difficulties Strong brand recognition that attracts top talent

20 A distinctive employment brand creates magnetism for talent Shape a Distinctive Employee Value Proposition (EVP) Define and Package the Brand Use the Brand to Attract and Retain Talent Affiliation Direct Financial EVP Work Content Indirect Financial Career An Employee Value Proposition reflects the company s distinctive combination of rewards A distinctive brand: Reflects key elements of the EVP Is noticeable and intriguing outside the organization The people with the skills needed in the future

21 Talent Management at 3M: Performance Management and Rewards Purpose: To ensure Employee Contribution and Development Process (EC&DP) is fully Strategic Plan integrated with talent management processes to leverage information and Demand Planning decisions made during HOO, Functional-, 1 Tier reviews, and Leadership Planning; incorporate identified developmental experiences; and maximize overall efficiency and effectiveness of the Talent Management Framework Talent Development Performance Management and Rewards Talent Requirements Talent Review Talent Acquisition Desired Outcomes: Improved and integrated EC&DP that will leverage the outcomes of other talent management processes, avoid redundant data collection efforts and decisionmaking sessions and strengthen development processes based on approved and standard talent requirements for strategic and core roles Enhanced focus on development as identified within the Talent Development component of the Talent Management Framework Defensible performance ratings based on approved and standard talent requirements for strategic and core roles

22 Driver: Me Car: Enablers (ECDP, IDP, Coaching, Mentoring, On the Job Experience, Networks, COE Support) Unpacked programs: focused learning experiences, eitehr stand-alone or in flexible combinatinos (e.g. Action Learning) Core program followup, reinforcement & transfer Toll gates: accountability and measurement mechanisms THE LEADERSHIP DEVELOPMENT HIGHWAY A Model for Linkage, Reinforcement, Continuity and Transfer in Development B U S I N E S S & P E R S O N A L G R O W T H LFF LDG Area Need Identification: VOC Delivery: COE Core Programs GM/MD ALDP I LPA Refresher LPA LFF Unpacked LTL LDG Unpacked TOLL / WAYPOINT TOLL / WAYPOINT UKLDP CHP MOC Team Sessions TOLL / WAYPOINT Team Building TOLL / WAYPOINT TOLL / WAYPOINT Country/ Bus/Funct Need Identification: Client Calls Delivery: COE & Vendors Core, Business Skills, Mindsets Core, Business Skills & Mindsets Core skills, Functional Training & Mindsets JG 18+ Individual Need Identification: IDP, Shared Vision Delivery: ED JG JG JG 9-10 Shared Vision Model defines needs at every level JG 7-8 Lanes: Levels at which needs are defined and served <JG 7

23 Brand Management Attract and Retain Talent

24 Segmenting Roles Based on Objectives ILLUSTRA ILLUSTRA TIVE TIVE As you identify the Roles in your Function that most impact the Strategic Direction/Objective s you will populate these fields. As you identify the Roles in your Function that are most impacted by the Strategic Direction/Objective s you will populate these fields.

25 job job rotation as as a principle for for employee developmenttarbeiterentwicklung Expanded Role E x a m p l e Production Worker Abrasives Module Jobchange HR Supervisor Hilden Site Home Based European Junior Product Manager Printed Post It Expatriates Junior Process Engineer, Filtration Production Worker Filtration Module HR Supervisor Sales & Marketing Product Manager Visual Supply Quality Engineer Cabin Air Filtration Quality Assurance Worker Supervisor Leadership Development European Business Development Supervisor Visual, Neuss Projectleader Filtration Products St. Paul Working Shift Foreman Supervisor Talent Management Marketing. Manager Consumer & Office Products Technical Supervisor Filtration Products, Kamen

26 A + B + C Core Competencies Functional Competencies Special Business Competencies Managing a Business Managing a Function Personal Competencies Professional Competencies Managerial Competencies Leadership Competencies Entrepreneurial Competencies Sales Comp Optimizing Management C. Reorganizing Management C. Integration Management C.... Entrepreneurial Management C. TALENT MANAGEMENT

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