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Paul Turner

Professor of Management PracticeAshcroft International Business School

Best practice in Talent Management and its role in turbulent times

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Paul Turner is Professor of Management Practice at Ashcroft International Business School,Cambridge as well as Non Executive Director of Blessing White Europe and a Non Executive

Directoron the European Advisory Board of OPI. He was formerly President of Europe, Middle East andAfrica, Employee Care for the Convergys Corporation,responsible for the HRBPO business across

theregion. Paul joined Convergys in 2003 as Vice President for both EMEA and ASPAC.

Paul Turner was previously Group HR Business Director for Lloyds TSB and Vice President of the CIPD as well as a Director of BT.

Paul obtained a first degree from the University of East Anglia, a PhD from the University ofSheffield and is a Companion of the CIPD. He has written extensively on management subjectsand has spoken at conferences throughout the USA,Europe and Asia as well as the CIPD nationalconferences in Harrogate and London.

Paul Turner is the author of HR Forecasting and Planning (2002) and OrganizationalCommunication (2003), both published by the CIPD and was one of the authors of the 2007 CIPDReport Talent. Paul’s new book, with Michael Brown,The Admirable Company, will be published in2008

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Be accessible, wily, shrewd and confident; never be arrogant.

Strike the right balance between dynamism and radicalism- and conservatism

Have high visibility when it’s right and low profile when it’s not

Be authentic and have the right touch with stakeholders

Show personal commitment to the company

Communicate the company vision and strategy clearly and demonstrate that performance is being delivered against strategic objectives

Don’t come across as being better than you are.

Beware of hubris!

Corporate reputation relies on outstanding Quality of Management- key messages

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Quality of Marketing

Quality of Management

Community &environmental Responsibility

Quality ofGoods and

Services

FinancialSoundness

Capacity toInnovate

Value as a longterm investment

Ability to attract,develop and retain

top talent

Use of corporateAssets

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The Effect of Talent Improvements in a Global Retailer

2006

2001

The Admirable CompanyMichael Brown and Paul Turner, 2008

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Increasing talent bench strength can change to fortunes of an

organisation!

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And a study by McKinsey in 2008 showed talent management also to be a key issue for CEO’s

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McKinsey’s Research- 2008-CIPD Conference UK 2008Talent management is the most important strategic challenge for

today's business leaders

Constraints on growth*

Substitutions/innovations by competitors

Cost/availability of talent

Competitive environment

Excessive regulations

Increasingly sophisticatedconsumers

Biggest managerial challenge in next 5 years

Finding talent

Greater competitive intensity

Increasing size of company

Increasing number of markets served

Increasing use of technology

Growing number of regulations

Growing complexity of supply chain

Greater geopolitical risk

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A study by the CIPD in 2007 showed the various forces at work when considering talent and talent management

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EXTERNAL CONTEXTGlobalisation

Government policiesTechnological development

Employment levels

WORKFORCE (supply)Demographic trends

Work force diversitySources of labour

Perceptions of leaders and managers

Work-life balance

EMPLOYERS (demand)Global markets

Competitive advantage Workforce flexibility/agility

Competition for labour‘Employer of Choice’ agenda

ORGANISATIONAL CONTEXTCorporate governance

Business strategyHR strategy, stewardship & policy

Approaches to Performance management Line management capability

Role modelling/mentoringSuccessful approaches to talent management

TALENTMANAGEMENT/SUCCESSION

PLANNING

Talent - Demand and Supply in a Global Context

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The talent war goes beyond simple economics which makes it much more complex. Social and attitudinal factors are critical as well.

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McKinsey’s Research- 2008-CIPD Conference UK 2008 The youngest generation entering the workforce are challenging to attract and retain, but respond well to social

connection

War generation• Born before 1945• Shaped by: World

War II, Great Depression

Baby boomers• Born 1945 - 1964• Shaped by: less trust

in government

Generation X• Born 1965 - 1980• Shaped by: Internet,

diversity, unemployment, parental divorce rates

Generation Y• Born after 1980• Shaped by: information

overflow, overzealous parents, globalisation

• Sees career in chapters of 2–3 years each

• Expects quick reward and individual development

• Has low barriers to separation and high self-confidence

• Sees flexibility as a must, will make trade-offs for better lifestyle

• Demands freedom and control

• Wants meaningful job and positive effect on society

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The War for Talent- what can we conclude?

Changes in the global labour market and demographic trends have had a significant effect on talent demand and supply

It permeates every aspect of the working population and is worldwide.

The ability to attract and retain talent has become a strategic priority

Success in talent management requires excellence in strategy and policy as well as flawless execution.

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What are people saying about talent?

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‘Talent. I love that word.

So different from employees

So different from personnel

So different from human resources

Talent. Just uttering the word per se makes you puff up

and feel good about yourself.’

Source- Talent, Tom Peters,2005

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‘People hold the key to our success- we cherish them’ Indra Nooyi, Chair, Pepsico,

2006

"Can we hire the quality and quantity of people we want to? No. We're under

investing in our business because of the limitations of hiring." Sergei Brin,

Google, 2005

‘We are driven by a need for innovative, flexible and highly responsive thinking.’

Maurice Levy, CEO of the Publicis Group, after recruiting talented executives from

a competitor, 2006

‘The HR function gives a company the ability to attract and retain the best and the

brightest from all over the world and the ability to manage that talent within the

confines of the company's values and philosophy. Without that ability, a company

is nowhere.’ HR Director- ATT

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Managing talent is a hard, not a soft issue. Getting it right adds value to the bottom line. The ability to attract and retain talent has become a board level issue.

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What do leading organisations do to ensure that they maintain an effective supply of talent and then keep their talented

people?

In 2007 the CIPD undertook in depth research with a number of companies. This followed on from the 2006 survey which found

that 51% of organisations undertake talent management activities; 38% had a formal talent management strategy and

38% had a formal definition of talent management

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An important step was to define talent and talent management

‘Talent consists of those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential’

‘Talent management is ‘the systematic attraction, identification, development, engagement/retention and deployment of those individuals with high potential who are of particular value to an organisation.’ (CIPD Change Agenda, 2006)

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20Source:"Identifying and managing your assets: talent management" – Rhea Duttagupta, PwC; "Reflections on talent management" – Rebecca Clake, Victoria Winkler, Chartered Institute of Personnel and Development; Next Generation Talent Management Initiative

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"Everybody is a talent"

"Various types of talent"

"Top management, high potentials, and specialists on all levels"

"Top management and high-potential senior managers"

All employees are considered talent

Talent includes employees on various career tracks and levels

All high-potentials/high- performing employees are part of talent pool

Top management and high-potentials/high-performing employees on all levels are called talent

Talent pool limited to top management and high-potential/high-performing middle management

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"High potentials independent of hierarchy level"

No discrimination among workforce

Differentiated approach targeted at specific roles

Development of individual career paths possible

One continuous development program

Early identification of talent

Continuous development programs on all levels

Narrow definition reduces complexity and allows for comparability among sample firms

Neglect of potential among lower-level employees

Neglect of talents in other areas, e.g. specialists

Focus onmost important positions

Full leverage of potential within workforce

Increased complexity and workload due to• Various needs/

career paths• Amount of

employees to tackle

Increased complexity and workload due to various needs/career paths

Some complexity due to 2 parallel, yet distinct talent development programs

Early identification of talent

McKinsey’s Research- 2008-CIPD Conference UK 2008

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We found that talent management was most effective when:

-It was directly linked to the corporate strategy and related business objectives (well-designed talent management activities can have a positive impact on an organisation’s bottom line)

-And to other HR processes- it wasn’t a stand alone activity

-In particular it was desirable to link talent management into other learning and development activities

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Managing Talent

Evaluating Talent

Developing Talent

Attracting Talent

Talent management was best viewed as an end to end, joined up, holistic activity

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There were various types of talent interventions

Rising Talent

EmergingLeaders

NextGeneration

Leaders

CorporateNext

GenerationLeaders

ExceptionalTalent

Potential and determination to progress

Training andeducation forcore technicalor professionalskills

Training and education for management roles

LeadershipDevelopment

One to one development by coaches/mentors briefed on corporate strategy

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CEO and Senior Management ✜ Strategy development

✜ Communicating the aims of talent management

✜ Selecting the talent pool

✜ Executive coaches and mentors

Human Resources ✜Researching and evaluating alternative approaches

✜ Advice and support with the design and implementation

✜ Information flow about TM activities

✜ Monitoring TM interventions

✜ Tracking the progress of the TM pool

Line Managers ✜ Identifying talent

✜ Nurturing talent

✜ Performance review and individual personal development

✜ Coaching and mentoring

Individuals ✜ Ownership of personal development

✜ Maximising learning opportunities

Talent Management ✜ Monitoring and evaluating strategic outcomes

✜ Organisational overview and consistency of approach

✜ Tracking the progression of the talent pool

✜ Reviewing and amending initiatives

Managing talent - who does what?

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Attraction•Employer branding•Competitive rewards•Creative recruitment measures•Measured selection tools

Strategic Objectives

Retention•Identifiable culture•Appropriate benefits•Leadership branding•Employee engagement•Exit interview data

Performance management•Clear expectations•Appraisal•Development•Measurement•Rewards

Development•Formal and informal interventions•Stretching projects•Career management /deployment•Coaching and mentoring

The talent management balanced scorecard

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What were the Implications for practitioners from the research?

– 1. A successful approach is based on an agreed, organization-wide definition of talent and talent management..

– 2. In addition, a language for talent management activities that is understood by all the parties

– 3. A proactive, strategic approach to talent management offers considerable organisational benefits

– 4. Support for talent management needs to flow from those at the very top of an organisation and cascade throughout.

– 5. Engaging line managers from an early stage is critical to ensure they are committed to organisational approaches to talent management.

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6. Talent management can be used to enhance an organisation’s image and supports employer branding

7. Talent management activities should be developed with other HR policies and practice for a joined up approach

8. Developing talent may be based on a blend of informal and formal methods.

9. HR specialists have an important role to play

10. Processes need to be developed to track the performance and progress of

those identified as talent

What were the Implications for practitioners from the research?