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1 AberdeenGroup 2009 Best-in-Class Organizations Don t Leave Talent Assessment to Chance Brought to you by: September 28, 2010

2 AberdeenGroup Today s Speakers Catey DeBalko, Vice President, Marketing CPP, Inc. Mollie Lombardi, Sr. Research Analyst Aberdeen Group Robert Weigand, Director of Organizational Development St. Luke s Hospital & Health Network Tanya Markovich, Director of Workplace Initiatives St. Luke s Hospital & Health Network

3 AberdeenGroup Agenda Thinking There Assessments as a foundation for talent decision making Getting There The tools needed for the journey Living There Ensuring sustainable results

4 AberdeenGroup Thinking There Why Assessments?

5 AberdeenGroup Alignment = Productivity and Performance Business Results Alignment Post-alignment Pre-alignment Increased results via better alignment Effort

6 Water, Water, Everywhere AberdeenGroup

7 The Customer is King AberdeenGroup

8 Better decisions throughout the talent lifecycle 75% 73% percentage of respondents, n=264 50% 25% 0% Improving quality of hire 63% Identifying high-potential talent 44% Identifying skill / competency gaps for each job role Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

9 Top Performers Use them More Widely percentage of respondents, n=264 50% 25% 0% 35% 18% 15% Individual contributors 43% 40% 24% 21% 22% 21% Front-line managers Best-in-Class Industry Average Laggard Mid-level managers 38% 26% 19% Executives Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

10 Top Performers use them Differently Percentage of respondents, n= Identifying candidates likely to have the greatest impact Identifying competency gaps for individuals Best-in-Class Industry Average Laggard Identifying team fit and building teams Evaluating promotion readiness of employees Assigning team members based fit Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

11 Assessments are Differentiating Top Performance in Succession Percentage of Respondents, n=268 80% 70% 60% 50% 40% 30% 20% 10% 0% 68% 33% Skills-based assessments 62% 23% Assessment tools that measure readiness and gaps 53% 53% AberdeenGroup % Data w arehouse or repository Best-in-Class 20% Talent profile repositories All Others 31% 8% Forecasting or predictive analytics softw are Source: Aberdeen Group, Succession Management, July 2010

12 Driving post-hire performance Best-in-Class Companies are more than 2½ times as likely to use assessments to measure readiness / identify competency gaps as part of their development and succession efforts Best-in-Class Companies are 2 times as likely to use skills assessments as part of their development and succession efforts Source: Aberdeen Group, Succession Management, July 2010 AberdeenGroup

13 So, Why Assessments? Impact Throughout the Lifecycle percentage of respondents, n=417 60% 40% 20% 0% 57% 46% Positions w ith ready and w illing successors 21% 12% Improvement in hiring manager satisfaction 14% 8% Improvement in cost per hire Using Assessments Not Using Assessments 10% 4% Change in profit per FTE Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

14 The Rewards of Top Performance Reduction in cost per hire -2% 15% 23% Change in revenue per FTE -6% 9% 19% Best-in-Class Industry Average Change in profit per FTE -3% 12% 19% Laggard -10% 0% 10% 20% 30% Average Year-over-Year Change, n = 264 Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

15 AberdeenGroup Getting There Skills for the Journey

16 AberdeenGroup SLH&HN SLH&HN was facing host of industry and operational challenges ranging from staff retention to cost containment and patient satisfaction Created a leadership steering committee Conducted a site visit exploring best practice leadership development models - Delnore Hospital, Ohio & Baptist Healthcare System, FL Committee identified five operational imperatives and designed a leadership development initiative & goals

17 Key Capabilities 100% 75% 89% 89% 77% 85% 74% Best-in-Class All Others 76% 74% 65% 62% 50% 48% 25% 0% Senior executives support assessment efforts Competencies for all job roles have been defined Employees understand how assessments are conducted and interpreted HR and/or managers are trained to apply assessment results Qualified professional is available to interpret assessment results Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

18 AberdeenGroup Performance of Organizations Using Assessments to Measure Readiness and Identify Gaps 80% 60% 40% 76% 75% 71% 56% 62% 41% Using Assessments Not Using 48% 30% 20% 0% Retention of highpotentials Time-to-productivity among new ly promoted leaders Performance among new ly promoted leaders Bench strength

19 AberdeenGroup Change in performance of Organizations Using Assessments to Measure Readiness and Identify Gaps 15% Using Assessments 11% Not Using 10% 5% 7% 5% 0% 0% 1% -5% -5% -3% -10% Employee engagement among successor candidates Revenue per FTE Cost to fill key leadership positions -9% Time to fill key leadership positions

20 AberdeenGroup The Journey 2001 Myers-Briggs Type Indicator (MBTI ) assessment Manager Employee 2004 CPI 434 assessment Hire for fit & reduce manager turnover 2005 CPI 434 & MBTI assessments Leadership development & coaching for new hire managers 2008 CPI 434, MBTI, Watson-Glaser II, TKI and EQ assessments Leadership Support & Development Program for existing managers

21 Competencies Create a Common Language AberdeenGroup

22 AberdeenGroup Competency Model Integrated with Talent Management Processes percent of respondents, n= % 75% 50% 25% 0% 78% 80% 69% Talent acquisition 61% Learning & development 85% 72% Performance management 73% Best-in-Class All Others 47% Succession planning

23 AberdeenGroup Integration Drives Top Performance Organizations that integrate their competency definitions across all four talent management processes are five times likely as to achieve Best-in-Class performance as those that do not

24 AberdeenGroup Key Competency Management Capabilities percent of respondents, n= % 75% 50% 25% 0% 90% 88% 83% 48% Organizational competencies agreed to by senior management 75% 37% HR & hiring managers collaborate to define job role competencies 80% Best-in-Class Average Laggard 30% 73% 57% 54% Existing employees assessed against competency profiles 18% Candidates assessed against competency profiles

25 74% of Best-in-Class organizations make sure that a qualified professional is available to interpret assessment results (either on staff, our through partnerships with solution providers), and are 37% more likely than Laggards to do so Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

26 Organizations with individuals trained to interpret assessments are more satisfied 50% Qualified Interpreter No Qualified Interpreter 48% 42% 25% 23% 13% 0% Extremely satisfied Somew hat satisfied Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

27 Performance of organizations with individuals trained to interpret assessments 100% Qualified Interpreter 75% 50% 78% 74% 75% 72% 59% 51% 46% 47% No Qualified Interpreter 25% 21% 19% 12% 9% 0% New -hire retention Time to productivity Benchstrength New -hire performance Change in hiring manager satisfaction Change in profit per FTE Source: Aberdeen Group, Talent Assessment Strategies, March 2010 AberdeenGroup

28 AberdeenGroup Living There Sustaining the Results

29 AberdeenGroup The Results Reduced turnover & increased retention 2006 brought 41% manager vacancy rate down to 10% 2009 manager vacancy rate is 2% Increased employee satisfaction (based on 3 concurrent years of data 2007, 2008, 2010) Valuing the importance of using assessments

30 Q&A AberdeenGroup

31 AberdeenGroup Top 10 Takeaways 1. Build, buy, rent or borrow a competency framework 2. Get stakeholders on board 3. Start with the hard stuff (skills) 4. Move assessments into the post-hire 5. Define the metrics

32 AberdeenGroup Top 10 Takeaways 6. Tie to business results 7. Tie back to candidate sources 8. Make sure the results are used correctly 9. Don t forget the HARDER stuff (behavior and fit) 10. Integrate assessment data throughout talent management

33 AberdeenGroup Thanks for your interest! CPP, Inc. Mollie Lombardi Senior Research Analyst, Human Capital Management

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