Talent Management Overview of framework, processes and tools

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1 Talent Management Overview of framework, processes and tools

2 The Perfect Talent Storm Skills shortage - Cost cutting vs closing the skills gap Identify & develop talent early Manage succession risk Ageing workforce Restructuring, downsizing, cost management vs Employment retention equity & diversity Globalisation and access to information Engagement studies Employer of choice EVP? The economic crisis High turnover of key talent Different expectations - generation gap, making space With organisations today operating under unprecedented conditions of competition and turbulence, it is increasingly difficult to attract and retain talented employees and scarce skills positions. It is therefore imperative that during these times, organisations develop a purposeful process for sourcing, attracting, engaging, managing, developing and retaining key talent. People have become the key differentiator in today s knowledge-based economy

3 The sports analogy helps us understand how important talent management is for high performance and winning in a competitive world. Each of these aspects are required to build a successful sports team. Early identification of young talent through watching for ability & attitude. Training and development to full potential and teamwork. Paying enough to retain but building commitment through relationships. Ensuing sufficient bench depth. Create opportunities to stretch & shine. Right skills in right positions to balance team strength. Good managers and great coaches. Making tough decisions when individuals lose their edge

4 What we typically experience when we ask staff about talent management Not credible Not transparent - 4 -

5 Talent management objectives Effective Talent Management ensures operational continuity and sustainability by ensuring that the right people, with the right skills, are in the right job, at the right time to ensure successful business results. Understand and develop the required standards of performance and behaviour at each level Understand the mission critical positions and skills required now and in the future Identify and develop high potential employees. Grow competent future leaders able to deal adeptly with complex business issues. Meet current and future technical and professional skills requirements. Retain and engage key staff with critical or core skills. Attain employment equity targets and avert skills shortages. Ensure effective organisational resource planning. Harness the potential and creativity of all employees and empower every individual to optimise their career and learning potential - 5 -

6 Talent Demand and Supply Talent Management is the holistic and integrated management practice of balancing the demand for critical skills with the supply of critical skills in both the short-term and the long term. TM includes the proactive identification, planning, attraction, development, retention and monitoring of both the supply and demand of critical positions and key talent. Positions (Demand) Identification and filling of mission critical positions (MCPs) that are critical to the on-going operations of the business. This impacts on productivity, delivery and cost. CEO People (Supply) Identification, sourcing, development and retention of key individuals who are considered to be of such critical importance to an organisation, that the risk of turnover warrants targeted activities to engage and retain them. Differentiation of Talent High Talent Pool Population Operations Supply Finance Potential Broader Employee Group Low Mission Critical Positions Scarce Skills Low Performance High flyers Key players Underperformers High TM complements the existing HR processes such as recruitment, skills development and performance management. TM assists with more focussed development activities for key talent, mission critical positions and ensures proper succession planning for these positions

7 Talent management needs to be seen as one of the 5 major Strategic Business Imperatives 5. Talent Reviews 1. Strategic Management 2. Business Plan 4. Performance Reviews 3. Budget Review

8 Talent Management Framework Effective Talent Management ensures operational continuity and sustainability by ensuring that the right people, with the right skills, are in the right job, at the right time to ensure successful business results

9 Talent Strategy Talent management requires a strategic approach to balancing business challenges, organisational capability and people capability. Annual reviews need to take place w.r.t Strategic skills sourcing, Mission Critical Positions, Scarce Skills and well as identification of any additional strategic talent challenges. Every few years, the talent strategy should be reviewed to ensure alignment with the business strategy and that there are plans to ensure organisation has sufficient capability to meet demand in the long term Talent Management Talent Forum Talent identification & succession Talent sourcing Talent Development Talent management includes the on-going co-ordination, management and monitoring of all talent management activities. This is the role of HR. Talent management activities include setting talent goals and measures, clarifying roles and accountabilities, ensuring processes and tools are in place that are aligned with other HR policies and processes, building capacity for implementation and monitoring and reporting on talent management activities and statistics Talent is best managed through a series of talent forums that meet at least annually to discuss and make strategic decisions regarding talent. The talent forums are responsible for giving input and validating the identification and categorisation of talent, succession plans and development plans for mission critical positions. The talent forums also discuss and make decisions on strategic recruitment, development or retention requirements impacting the business. The talent forums work together with line managers and Human Resources to ensure agreed decisions and actions are implemented. Talent forums are held at different levels of the business ensuring talent pools and critical staffing issues are identified at each critical level and communicated upward ultimately to the most senior talent forum. Talent identification includes the identification of mission critical positions and the categorization of high flyers, key players and under-performers using the 9 box matrix and the Leadership Pipeline. Additional segments can be specified depending on business requirements. Succession planning involves matching the identified individuals with future potential positions and creating talent pools for certain key levels and disciplines. The succession plans will drive the differentiated development and retention of talent to ensure readiness when a position becomes vacant. Underperformers need to be managed, moved or released to ensure fully performing people in all positions. Talent sourcing involves a strategic approach to attracting and recruiting talent both internally and within the external labour market to address the gaps that may be identified in the succession planning process and talent forums. The strategic activities will focus on communicating an attractive employee value proposition to entice talent into the organisation and building strategic sources of scarce skills positions and future competencies. On a more operational level, job and competency profiles need to be kept up to date and recruitment processes optimised for fast turn-around on vacancies. Once a person has joined the company, the on-boarding process is critical to ensure engagement and rapid integration with the company for maintaining performance standards. Development includes the various development actions for the talent pool to address the talent gap, including performance development (developing skills for their current jobs) and career development (career planning and developing skills for future potential jobs). A career management system (the leadership pipeline/career matrix) with defined performance and competency standards at each level will facilitate individual and organisational competence gap analyses for accurate development planning. Development also includes applied learning, where opportunities are created for key talent to learn on the job through new appointments, project roles, secondments or exchanges. Employees can be afforded an opportunity to discuss career aspirations and development needs during career discussions. Talent This includes the engagement and retention of the existing talent pool and broad category of employees, through the perception that the company is engagement & viewed as an employer of choice with a sound value proposition. The value proposition must reflect a respected organisation, challenging jobs, effective retention leaders, motivating rewards and a conducive culture. The creation of the value proposition requires accountability at all levels, infusing the right behaviours and leadership style, instilling a talent mind-set, rewarding talent financially and recognising talent through various non-financial means such as mentoring, job rotation, role challenge, work life balance and recognition schemes. Release includes the release of employees from the organisation, either through individually initiated movement to another career opportunity in another the company or through a the company initiated process of release due to poor performance, incapacity, disciplinary issues or retirement

10 Talent Management Process Preparation Career Discussion Talent Review Outputs & Actions Feedback & Monitoring Collect portfolio of evidence for: Performance (review plus criteria) Competence (gap analysis) Potential criteria Career Discussion Guide: Realistic aspirations Development priorities & plans Engagement & retention Present direct reports: 9-Box placements Portfolio of evidence Succession Plans Talent action plans Succession Plans & pools per MCP Talent development and action plans Collation of all outputs into master plan (HC) Feedback to individuals Quarterly reporting and monitoring of talent action plans and measures

11 Preparation Throughout the year, managers collect evidence of performance, competence & potential of their direct reports culminating in a formal Performance Review. There is also a competence profiling exercise to identify development needs to improve performance or build readiness for next level positions. Tools include performance and competence standards, performance contract and individual development plan Career discussions Before the talent forum, it is important that there is a career discussion between managers and direct reports to assess realistic career aspirations and options, development needs and retention issues. Prior to the discussion, both the employee and the manager prepare using the career discussion template. The aim is to reach consensus on the information and actions to be presented to the talent forum. After the career discussion, the manager finalises the career discussion information for all direct reports and forwards them to the talent forum co-ordinator before the talent forum. Tools include a career discussion guide Talent Forum Before the talent forum, managers will prepare their input including their strategic talent issues, 9-Box placement, succession plan and talent action plans for their Business Units and functions. They will then present these to the talent forum for input, discussion, challenge and validation. The aim is to improve objectivity and reach consensus on the talent outputs. Tools include strategic talent issues, 9-Box matrix, succession plan and talent action plans Outputs & actions The talent outputs and actions will be documented by the talent forum administrator and circulated to all members and captured electronically. Responsible individuals will be expected to report back on progress at quarterly talent reviews. Individual development plans are to be updated post the talent forum to reflect any changes. Tools include the individual development plan and the talent action plan progress report Feedback & monitoring It is important that managers feedback to individuals any changes to the career discussion proposals or any other pertinent information from the talent forums. Face to face feedback sessions are important to build engagement and thereby reduce mismatched expectations and retention risk. Tools include the feedback guidelines

12 2009 Potential Mastery Growth Turn Talent Management Tools Preparation Career Discussion Talent Review Outputs & Actions Feedback & Monitoring # 6 Enterprise Manager Group Manager Manage Self Professional # 4 # 2 Functional Manager Business Manager Manage Managers Manage Others Manage Self # 5 # 3 # 1 Outputs by KRA Financial Uses resources efficiently and effectively Plans and sets own/team targets (products/services/volumes etc) Contributes to budget setting & control of costs Awareness of impact on business of financial decisions People Coaches and mentors others in field of expertise Communicates and collaborates effectively with others Proactively builds professional relationships within and across teams Business Processes Ensures professional activities meet HSEQ standards Drives out own work in alignment with team objectives Follows company policies and procedures efficiently and effectively Leverages internal and external networks to identify optimisation opportunities Customers Achieves results in a way that builds and maintains constructive working relationships with managers, peers, clients and other service providers Demonstrates understanding of internal and external customer needs, expectations and delivers accordingly Collaborates effectively with internal and external service providers Role Behaviours Spends time delivering work within own area or area of professional expertise and proactively seeks out feedback Lives organisation values Displays professional conduct Manages own time to ensure working relationships with peers and customers Asks questions to clarify objectives and provides support to others seeking clarification in area of expertise Sustains high level of focus effort and energy Approaches and resolves problems in a systematic way Actively pursues own development Communicates with others clearly and considerately Recognises when issues need to be resolved and with whom Manages delivery of medium/long term goals effectively Embraces change and implements it in own areas of work Applies knowledge and expertise for results Lives organisation values and brand when interacting with internal and external customers Warning signs of leading at the wrong level Fails to meet HSEQ standards Does not meet objectives timeously Fails to build effective working relationships within the team Poor professional discipline (e.g. time management) Allows problems to fester rather than address them timeously and constructively Fails to undertake preventative action in professional areas of responsibility Integrated Pipeline Performance Standards / Role Profiles Competency Profiles Personal Profiles Career Discussion Performance Not yet full (1/2) Full (3) Exceptional (4) Succession Plan Talent Action Plan Portfolio of evidence 9-Box Matrix

13 Talent Forum Review 3 tiers Level Process 1 Talent Review Directors to review direct reports (function heads) and consolidated talent reviews (levels 2&3) Level 2 Talent Review Function heads to review direct reports and consolidated talent reviews (level 3) Level 3 Talent Review Operation/function management teams to review MCPs, core skills and emerging talent for operation/function

14 Identifying readiness for future roles How do I know I am successful in the role Performance Standards what level of performance is required to be successful in the role (Outputs) Tasks Activity Results Outputs Competency Standards what capabilities are required to achieve the required standard of performance (Inputs) Knowledge Skills Behaviours Values

15 Leadership and technical specialist career matrix Leadership Level Criteria Technical Level Criteria L 4 Executive Manage Business (Business leadership) L 3 Strategic Manage Function (Functional leadership) Heads up an operation or a business comprising multiple operations E.g.. Managing Director, Financial Director, HR Director, Marketing Director Heads up a function comprising multiple departments E.g. General Managers, Div procurement manager, Ops support manager T 4 Deep specialist Functional advice T 3 Knowledge worker Technical/profes sional advice No direct reports, experienced graduate and registered professional, deep specialist, many years industry experience E.g.. Senior Professional Engineer, Commodity Specialist, No direct reports, graduate and registered i.t.o. codes of practice Eg. Engineer, Senior Buyer L 2 Operational Manage Managers (Results leadership) Heads up a department. More than one layer of direct reports Eg. Senior Manager, Manager, Works manager T 2 Skilled worker Technical application No direct reports, some technical training required Eg. Technician, Artisan, junior buyer L 1 Team Manage Others (Teamleadership) Heads up a team, only one layer of direct reports. e.g. Plant Coordinators & Supervisors, Eng./Materials/QC/Prod Manager, Supervisor T 1 Operator/ Administrator Task delivery No direct reports, no formal training required E.g.. Secretaries, PA s, administrators, driver,

16 Leadership and technical specialist career matrix Leadership Level Key outputs/performance standards Technical Level Key outputs/performance standards L 4 Executive Manage Business (Business leadership) Develops organisational strategy External stakeholder management Building effective executive team 5 year plus plans T 4 Deep specialist Functional advice Further qualifications and/or in-depth experience within area of specialty Application for functional improvement Applies best practice L 3 Strategic Manage Function (Functional leadership) Developing functional strategy through multiple layers Contribution to general management decisions 3-5 yr functional plans translated into annual plans T 3 Knowledge worker Technical/professional advice Professional or technical qualification Application for operational improvement Organisational representative in field L 2 Operational Manage Managers (Results leadership) Managing more than one team and more than one level Securing people and financial resources Coaching managers and technical specialists Quarterly/annual plans T 2 Skilled worker Technical application Technical training to develop skills Application for team improvement Keeps abreast of technical and technological developments L 1 Team Manage Others (Team-leadership) Managing a team Coaching Managing labour relations Weekly/monthly planning T 1 Operator/ Administrator Task delivery Entry level skills required Task completion Team player Compliance with policies and procedures

17 Consolidate & Contribute Potential (Stretch and personal orientation) Develop & Apply Move & retain Performance and potential matrix Performance (Track record and behaviors) Falls Short Meets Exceeds Ready Later coach and develop, need intensive support Ready now for additional responsibility e.g. short term assignment Ready now for new level job Develop skills or identify mismatch for release Stretch and test e.g. projects / new assignments Ready now for bigger job Correct or manage release Maximise productivity and upgrade skills or move Retain, recognise and utilise as coaches High Flyers: Focus on accelerated development Key Players: Focus on performance to ensure continued value is added Underperformers: Rigorous performance management required

18 Defining Potential ABILITY Mental/cognitive ability Emotional intelligence Technical/functional skills, Interpersonal skills, ability to stretch and progress quickly TRACK RECORD Consistent history of good to exceptional performance and results Good relationships and reputation ENGAGEMENT Emotional commitment Rational commitment Intent to stay ATTRIBUTES Innate characteristics Energy, drive, passion Curiosity, willingness to learn & change, Resilience BEHAVIOUR Leadership behaviour Team player Relationship builder Contributor Values alignment Positive Attitude ASPIRATION Desire for advancement, influence, financial rewards Work-life balance Overall job satisfaction

19 Portfolio of Evidence RESULTS Evidence of Performance quantity, quality, cost, service, surveys, deadlines, project delivery, efficiencies, financial results (KPIs) ACCOMPLISHMENTS awards, special achievements, going the extra mile, customer feedback, management recognition, special assignments RELATIONSHIPS relationships built and maintained, networks, conflict resolution, teamwork PROJECT/TEAM CONTRIBUTION ideas, commitment, delivery, support, accountability, ownership CULTURE leadership brand, RMB principles ABILITY Evidence of Performance cognitive processing ability (CPP), emotional intelligence (EQi), technical competence ATTRIBUTES energy, drive, positive attitude, passion, curiosity, fast learner, openness to change, resilience, willing to go the extra mile LEADERSHIP COMPETENCIES self-leadership, leadership of others, team player, relationship builder, influencer, communicator, innovator, problem solver ASPIRATION desire for advancement and financial rewards, ambition, sense of purpose ENGAGEMENT intent to stay, discretionary effort, enthusiasm, loyalty, responsive to change

20 What is required for next level readiness Competencies and proficiency levels Leadership & Personal Competencies Strategic Thinking Communication People Management Performance Mgt Resilience Job Competency Profile Technical Competencies Research Design Planning Maintenance Process Mgt

21 Competency Gap Analysis Competency HR Manager required proficiency level HR Manageractual proficiency level Gap for development HR Strategy HR legislation HR Policies & Procedures HR Measures Organisational Design - structure Organisational Development - culture Diagnostics data, analysis, reporting Recruitment Performance Training and Development Talent Management HR information systems Employee relations Employee Wellness Consulting skills Project Management skills IDP IDP WSP

22 Talent Action Plan Individual Action Item By Who By When Stephanie Day Coaching and stretch assignments to build readiness for Senior Manager position or similar John 30/6/12 Retention General Items Action Item By Who By When Resourcing Arrange market survey for all professional posts in Unit and pay market allowance as applicable in terms of Scarce Skills Policy. Build a graduate programme and pipeline for artisans and engineers to ensure supply. Stephen 30/7/12 Jenny 30/10/12 Development Source project mgt course for managers Khosi 30/11/12 NB: give feedback to the candidates on the outcomes of the talent forum using the feedback guidelines. Ensure all action plans are integrated into management agendas, actions and tracking processes

23 Development options Self-study Reflection Internet Discovery Trial and error Assessment Soliciting feedback elearning Behaviour change = lowest Formal programmes Business school programme Public courses Seminars Conferences Company training programmes External supplier programmes Behaviour change = low Group learning Coaching Action learning Strategy sessions Team development Leadership programmes with peers Networking forums Behaviour change = medium External coach Coach Manager Peers Setting goals, creating learning opportunities, sharing information, experience and tools, feedback Behaviour change = high Special projects Secondment Job rotation Acting role Graduate programmes Leadership assignments i.e..new job, new locality, new team Exposure/visits Delegating aspects of next level role Behaviour change = highest

24 Succession Plan Position & Incumbent # of years in Position Potential Successors Readiness Comments Deputy Head Operations Stephen Mhlangu (3yrs) Professional Engineer Joe Dean (18mnths) Finance Manager Max Khumalo (5 yrs.) Bheki Khumalo Siya Makhaye Nondumiso Ntuli Ravika Pillay Stephen Mhlangu retiring in May 2007 Ongoing coaching & development underway Rotational acting appointment No successors internally Successor/s identified ready to be placed within 1 year Successor/s identified ready to be placed within 1 2 years No successors yet identified or only ready after 2 years

25 Talent Attraction & Retention Challenging Jobs Interesting, challenging jobs, flexible options, space creation Effective Leaders Leadership style, engagement, coaching, growing Retention Drivers Motivating Rewards Rewards that motivate, recognition for value, special initiatives for at risk people in MCPs Conducive Culture Conducive environment for learning, growth, accountability, performance management, teamwork Respected Organisation Talent value proposition, brand, image reputation as employer

26 Strategic Leadership Delivering Results Engagement & Dialogue Personal Effectiveness Proficiency level Talent Management Framework 5 Respected organisation value proposition, brand, image reputation as employer Conducive culture Conducive environment for learning, growth, accountability, performance mgt, teamwork Challenging jobs Interesting, challenging jobs, flexible options, space creation Effective leaders Leadership style, engagement, coaching Motivating rewards Rewards that motivate, recognition for value 4 Competency gap analysis Leadership Technical Strategic T&D Development Self-study Coaching/mentoring Skills development Leadership Development Competency HR Mr Gr HR Strategy HR legislat HR Policies HR Measure Applied learning New appointments Project roles Secondments/acting Space creation/vsp 1 Monitor & report Build capacity 7 Actions Current & Future business challenges Organisation capability review TM strategic overview Career discussion template 9 box matrix Succession plan Talent development & action plans 6 People capability review Objectives, measures & principles Accountabilities Talent goals Measures Tools 2 Demand (positions) ID mission critical positions ID scarce skills 3 Strategic Value proposition Critical & scarce skill supply Future competencies Strategic sourcing Succession Plan Supply (people) ID High potentials ID key players ID under-performers Performance (Track record and behaviors) Not yet full (1/2) Full (3) Exceptiona l (4) Operational Competency profiles Recruitment processes Induction processes Forum exposure Talent recruiting talent ILP Career Dev Plan WSP Technical competency Career and development discussions

27 About Catalyst Consulting Catalyst Consulting is a specialised consulting and training business with extensive Southern African and international experience in the design and implementation of organisation-wide strategic change and culture transformation journeys, leadership development, talent management, coaching and mentoring, high performance teams and HR capability building. Our passion is enabling leaders and HR professionals in their quest to create high performance organisations in which people can grow and contribute in meaningful ways to their full potential. Our talent is facilitating and stimulating people to shift mind-sets, change behaviours and develop skills for real sustainable results. Our team is experienced, creative and committed to help people address the challenges of the complex and dynamic work environment and partner with clients to build capacity for long-term impact. Our success is based on rigorous project and change management, customised solutions, interactive, toolkit based learning and leaving a legacy of confidence and competence. Our team of experienced associates bring with them, an integrated approach reflecting the realities of corporate life, organisational politics and a deep understanding and experience of the complex pressures and dynamics facing leaders today. They also ensure impact and sustainability through involvement and ownership of clients and participants and a strong change and project management approach to interventions. CATALYST is BEE level 4 compliant

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