BUSINESS AND TALENT ALIGNMENT PEOPLE DECISIONS THAT DRIVE BUSINESS SUCCESS. Pearl Maphoshe

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1 BUSINESS AND TALENT ALIGNMENT PEOPLE DECISIONS THAT DRIVE BUSINESS SUCCESS Pearl Maphoshe

2 BACKGROUND Activating business strategy through talent strategy Great people decisions and business success Sustainable success driven by consistent breakthrough performance Distinctive execution capability

3 BUSINESS EXECUTION DRIVERS & EXECUTION CAPABILITY Strategy Business Execution Capability Assets BUSINESS RESULTS Many companies have elaborate systems to define strategies and monitor asset performance, but few effectively manage and measure the capability to execute.

4 PERFORMANCE ENHANCEMENT PROCESS Strategy Structure Systems Shared values Style Staff Skills Source: McKinsey s 7S s model

5 People Strategy BUSINESS STRATEGY KEY PRIORITIES TALENT MANAGEMENT LEVERS Workforce planning Attraction & acquisition Performance management Learning & development Total rewards EXECUTION ENABLERS Employee satisfaction Employee commitment Employee productivity Employee engagement BUSINESS PERFORMANCE Retention & engagement Employee retention

6 CULTURE WILL EAT YOUR STRATEGY FOR BREAKFAST

7 FIT-FOR-PURPOSE Business Needs Performance & Potential Values Alignment

8 TALENT MANAGEMENT MANDATE RIGHT PEOPLE Staffing, promotions And workforce planning RIGHT WAY Performance management, 360 & compensation RIGHT THINGS Goal management, Collaboration & compensation WHO YOU ARE Attributes (Skills, aptitudes, interests) HOW YOU ACT Competencies WHAT YOU ACHIEVE Goals RIGHT DEVELOPMENT Attributes (Skills, aptitudes, interests) Source: Driving Business Execution through Integrated Talent Management - SuccessFactors / White Paper

9 MEASURES OBJECTIVE EMPLOYEE - CUSTOMER PROFIT CHAIN A COMPELLING PLACE TO WORK A COMPELLING PLACE TO DO BUSINESS A COMPELLING PLACE TO INVEST Environment for personal growth and development Support for ideas and innovation Empowered and involved teams and individuals Great merchandise at great values Excellent customer service from the best people Fun place to do business Customer loyalty Revenue growth Superior operating income growth Efficient asset management Productivity gains Personal growth and development Empowered teams Customer needs met Customer satisfaction Customer retention Revenue growth Sales per square foot Inventory turnover Operating income margin Return on assets Harvard Business ReviewFrom the January 1998 issue

10 SUCCESSION PLANNING DELIVERING THE FUTURE TODAY

11 TALENT DISCUSSION GUIDELINES Guidelines: Key Business Priorities Key questions to consider: What is the business strategy for the next 1-5 years? What is the Life of Asset? What are the global trends in your business? What are the diversity goals for the Company? What are the growth or expansion plans for the local area and growth markets? What organizational changes are needed to achieve strategic goals? Are you an importer of talent or an exporter of talent? What are the industry trends for the future? Who are your competitors for talent and what are they doing? What are the EPS goals for the future? What competencies will be needed in the future? What positions will be critical in the future? List top 3 key priorities Key Priority Key Priority Key Priority Guidelines: Talent Implications Key questions to consider: What are your growth plans vs. the current level of people readiness and availability? What has been your talent movement TY vs. LY? (9-Box, promotions, demotions, separations, etc.) What are your EPS scores and trends? How many open positions do you have currently and plan for the future? What is the leadership depth today based on critical positions? What are the current competency gaps? What is your bench strength? (breadth, depth, diversity, gender, global experience) What are the workforce dynamics trends in your business? (shortage/overage) How diverse is your leadership? (different business experience, functional experience, etc.) What is the tenure of your associate population? What is the leadership experience based P&L responsibility? Talent Implications Talent Implications Talent Implications Guidelines: Talent Action Plan Key questions to consider: What experiences should take place to overcome the talent implications of your business (leading a new business, global assignments, new positions)? What new ideas, cultures, leadership styles should your leaders be exposed to? What development and education opportunities should be provided to your leaders? What human resource activities need to take place to ensure your talent implications are addressed? From key business opportunities and talent implications determine broad action items to address gaps in talent These broad items must be addressed in detail in the upcoming quarterly talent review sessions Multiple action items may be required for each talent implication List a minimum of 1 action item for each implication Talent Plan Talent Plan Talent Plan

12 Business Strategy SUCCESSION PLANNING FRAMEWORK Succession Planning Framework Roles & Competency Profiles Succession Planning Process Demand Supply Calibration Gap Management Outcomes Critical Roles & Functions These roles & functions are: Integral to the business strategy Scarce in the labour market Require exceptional depth of knowledge Takes years to develop capabilities Talent Capability & Potential Critical elements include: Performance review results Talent assessment results Critical experience Educational qualifications Talent Pool Validation Career Discussions Critical Talent Planning Talent Reviews Succession Plans Identification of HIPOs Retention & Reward Planning Build Development for Internal Talent Movement Buy Acquire Talent Externally Borrow Contractors or Temps Bounce Focused talent investment, processes and programs Talent actions aligned to business plan Improved governance and reporting on talent Better management of capability gaps Targeted retention Business Outcomes TALENT MANAGEMENT SYSTEM HR SYSTEMS Planned Attrition

13 PEOPLE MANAGEMENT PHILOSOPHY

14 CAREER PATHING Top Management Enterprise Managers & Managers of Business Units/Functions Managing Self or Maybe Others Experts Senior Management Middle Management Managing Managers Senior Specialists First Line Management Supervising Others Managing Self Functional Specialists / Front-Line Employees Back Office, Operational, Contingent Employees June 2015 Career pyramid SLIDE 14

15 DOMAINS OF LEADERSHIP Personal Leadership Team Leadership Functional/ Technical Expertise

16 Low Medium Potential High PERFORMANCE / POTENTIAL MATRIX ENIGMA ENIGMA High potential to advance further High potential to advance further although underperforming although underperforming GROWTH EMPLOYEE Demonstrates high potential to advance further FUTURE LEADER Highest potential best for senior succession Maybe in wrong job/wrong manager; Maybe in wrong job/wrong manager; needs intervention needs intervention Valued talent, challenge, reward, recognize and develop Top talent, reward, recognize, promote, develop DILEMMA Likely to have scope to move one level/challenge is necessary as underperforming CORE EMPLOYEE Motivate, engage and reward HIGH IMPACT PERFORMER Strong contributor, challenge, reward, grow and motivate Provide coaching UNDER PERFORMER Has reached job potential and is underperforming Performance manage or exit EFFECTIVE Specialized or expert talent reached career potential Engage, focus, motivate TRUSTED PROFESSIONAL Specialized or expert talent reached career potential Retain, reward, help with developing others Low Performance Medium High

17 Values Based Leadership CULTURAL ALIGNMENT Low Performance High Leadership Medium Performance High Leadership High Performance High Leadership Low Performance Medium Leadership Medium Performance Medium Leadership High Performance Medium Leadership Low Performance Low Leadership Medium Performance Low Leadership Performance High Performance Low Leadership

18 Potential (Stretch and Personal Orientation) Consolidate & Contribute Develop & Apply Move & Retain INVESTMENT MATRIX An Performance (Track Record and Behaviours) Falls Short Meets Exceeds Ready Later coach and develop, needs 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

19 Bersin Leadership Development Model Maturity Level 4: Strategic Leadership Development Championed by Executives, Talent Management Integration Level 3: Focused Leadership Development Culture Setting, Future Focussed, Developing Organisation Level 2: Structured Leadership Training Core Competencies, Well Defined Curriculum, Developing Individuals Level 1: Inconsistent Management Training Content Available, No Development Process, Benefit to Employees Source: High Impact Leadership Development Bersin & Associates October 2011

20 CONCLUSION Activate business strategy through talent strategy What are the big picture goals? What talent do you need to achieve those goals? Analyse the talent strategy What are the mission-critical and pivotal roles? Align talent strategy to business strategy How will you organize and define roles so that your talent support your strategy? Execute your talent strategy

21 BUSINESS AND TALENT ALIGNMENT PEOPLE DECISIONS THAT DRIVE BUSINESS SUCCESS Pearl Maphoshe

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