Best Practices for Talent Management

Transcription

1 Best Practices for Talent Management Date or subtitle Venture Bank June If we don t get the people thing right, we lose. It s the most important thing in all our businesses. Jack Welch, Former CEO, General Electric (GE)

2 Talent Management Loop Organizational Structure and Role Alignment Communication Talent Assessment and Succession Management Behavior, Competencies and Performance Standards Reward and Recognition Learning and Development Performance Management Coaching and Feedback 3 The Central Challenge To have the talent that the business needs over time there are four key imperatives: Safeguard Business Critical Capabilities Accelerate Development Overcome New Hire Derailers Leverage talent

3 Why Now? Competitive Changes Economic rebound more opportunity Human capital as a differentiator Labor Market Changes Demographic trends More dynamic labor markets Organizational Changes New organizational structure New focus on leadership and governance 5 The Business Case

4 The Swing: 2010 to 2020 Workforce Demographics Projections: 2010 & 2020* Traditionalists Boomers X ers Millennials 10% 2% 21% Traditionalists Boomers X ers Millennials Globals 51% 16% Special Note: Pew Research Center indicates that in 2015 Millennials surpassed the Xers to become the largest share of the American workforce. *Projected data 7 Generation Birth Years and Ages Traditionalists Boomers Xers Millenials Globals

5 Performance Management The process of creating and maintaining an environment of accountability (organization, the manager, and the employee) to enable employees to perform to the best of their abilities. A whole system that begins when an individual assumes a position and ends when an individual leaves the organization. 9 Performance Management Focused on creating the future for and the development of an employee in order to achieve desired goals, objectives, and outcomes. Proactive and intentional. The foundation of high-performing organizations

6 The Evolution of Management Thinking 11 Changing Performance Trends

7 Reward and Recognition TOTAL REWARDS MINDSET Embrace a total rewards mindset that encompasses anything associated with the overall employment experience of the employee with your organization. Know that it transcends direct and indirect compensation. 13 Reward and Recognition Compensation Component Attract Retain Short-term Motivate Long-term Change Behavior Provide Security/ Protection Base Salary X X Annual Incentives X X X X Long-Term Incentives X X X Basic Benefits Supplemental Benefits Supplemental Retirement Plan Perquisites X X X X X

8 A Total Rewards Mindset Includes Compensation Work-Life Effectiveness / Environment Benefits Total Rewards Key Components Performance & Recognition Development & Career Planning 15 Succession Management An integrated set of processes within the overall talent management system that identifies and prepares successors for key roles needed to deliver the business strategy. Processes include: Talent Assessment Succession Planning Development Planning

9 The Link to Business Strategy Business Strategy and Drivers determine Talent for what? Business Strategy and Drivers Human Capital Strategy Strategy is future focused: What we have today may not be what we need in the future. Talent Strategy Identify Talent Formal Assessment Internal Screening Performance Reviews/Promotions Develop Talent On the job/off the job job Assignments Coaching and Mentoring Progress Talent Organization Structure Performance Management/Rewards Career Paths 17 Succession Management: Three Essential Steps 1. Identify what you need & don t need in critical positions 2. Assess talent you have, don t have & risks 3. Develop and make critical investments to achieve organizational success!

10 2 Distinct Components 1. Mission Critical Positions 2. Mission Critical Talent Mission Critical Positions: Identification Mission Critical Roles refer to positions that are essential to the achievement of long-term strategic business priorities through their strategic impact and/or contribution of unique capabilities. Identifying mission critical positions in the organization Goal Identify which jobs are mission critical Less than 15% of jobs Top players should be in mission critical positions Rationale Strategy executed positions Top performers impact the bottom line Don t want B/C players in strategic positions

11 Mission Critical Positions: Characteristics Has direct impact on the company s culture, strategic success and profitability Having significantly more top talent in these roles would enhance the success of the company s business model Usually less than 15% of an organization s positions qualify Not determined by hierarchy but rather impact High variability in performance across incumbents Mission Critical Talent: Dimensions Dimensions of Talent: Performance Delivering on goals, results and accountabilities Potential the ability to adapt to and fit into increasingly complex roles and environments: Personal and Professional Motivation Intellectual Curiosity Innovation and Insight Engagement Determination

12 Mission Critical Talent: Talent Assessment Most recent performance review ratings Feedback from others 360 feedback Stretch goals and contributions Questions to ask:? Does this person have a proven track record for accomplishing impressive results?? Are any potential inconsistencies derailers?? Are they already performing at the next level? Mission Critical Talent: Talent Assessment It is multi-faceted Prioritize most important facets to evaluate Values Competencies It is always a judgment call Minimize subjectivity through comprehensive involvement The more evidential experience, the better your judgment will be

13 Mission Critical Talent: Talent Assessment How do unexpected changes affect this person s performance? How does this person respond to obstacles? Does this person inspire others and lead through persuasion and influence? Does this person have initiative and seek additional responsibility? Does this person continually offer solutions & new ideas? 9 Box Grid

14 Mission Critical Talent: Readiness Position Title: Position Key Competencies: Current Incumbent: Evaluator: SUCCESSION PLANNING READINESS CHART Candidate Name Current Position Title Current Department Interim Readiness Level Ready 2 3yrs 3 5 yrs Now Long Shot Strengths Development Needs 27 Mission Critical Position & Talent Planning

15 Mission Critical Talent: Results Quantity and quality of existing talent Relevant to all talent management processes and systems Recruiting and Selection Development Total Rewards Performance Management Succession Management 29 ARC Model For purposes of focusing on talent management: Accelerate development; test potential Retain and motivate; continue to grow Coach or change; improve performance Remember: All positions and all employees are important to the organization!

16 Succession Management: Plan Importance Demonstrate intentionality, commitment, and sustainability Ensures effective talent management to achieve strategic goals objectives today and into the future Prepares the company and individuals for change by developing critical competencies Provides growth opportunities to enhance retention of key team members Promotes continuity of organizational culture 31 Succession Planning vs. Replacement Planning Replacement Planning Reactive Risk Management Replacing/Substituting Unstructured Approach Exclusive Rigid Succession Planning Pro-Active Talent Management Renewing/Energizing Organized Alignment Inclusive Flexible Source: Grow Your Own Leaders Authors: Byham, Smith, and Paese

17 Succession Management: The Cycle PLANNING TEAM /PROCESS IMPLEMENTATION Performance Against Plan Development Outcomes STRATEGIC PLAN Goals Mission Critical Roles/Functions SUCCESSION PLAN (1-3 yrs.) Goals, Objectives & Measurements Action Plans Budgeting SUCCESSION PRIORITIES (3 yrs.) Mission Critical Roles Mission Critical Talent SUCCESSION ASSESSMENT Talent Pool Assessment -Incumbents -Known Successors -Unknown Talent Succession Readiness -Gaps -Risks 33 Succession Management: Development The process of bridging the gap between what potential succession candidates can already do and what they must be able to do to qualify for advancement Education Specific, Targeted Training Special Projects/Job Assignments Executive Coaching

18 The Succession Management Process Review the strategic plan and any pertinent management reports. Review and align the organizational structure with the strategic plan. Identify mission critical positions. Identify key emergent positions. Identify and define critical experience, skills, and competencies for mission critical positions and key emergent roles. 35 The Succession Management Process Develop comprehensive job descriptions. Conduct a talent assessment of current talent within the company. Evaluate the current demographics of the company for each mission critical position. Identify the mission critical talent. Identify the high potential employees who will be considered candidates for succession into higher levels of role and responsibility

19 The Succession Management Process Identify, assess, and prioritize gaps Develop detailed personal development plans for mission critical and high potential employees within the company. Continually monitor progress toward and achievement of personal development goals. Communicate, communicate, communicate Update succession plan and related tools annually or when turnover occurs. 37 The people... in the seats... for the time

20 Questions Julia Johnson Senior Manager, Strategic Advisory Services