1
2
Paul Turner
Professor of Management PracticeAshcroft International Business School
Best practice in Talent Management and its role in turbulent times
3
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
4
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
5
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
9810
1 2 354
67
The Effect of Talent Improvements in a Global Retailer
2006
2001
The Admirable CompanyMichael Brown and Paul Turner, 2008
6
Increasing talent bench strength can change to fortunes of an
organisation!
7
And a study by McKinsey in 2008 showed talent management also to be a key issue for CEO’s
8
8
LOX-ZZV583123-20070112-SM-SM
52
60
64
73
77
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
1
2
3
4
5
6
7
8
4
1
5
5
11
19
22
31 1
2
3
4
5
9
A study by the CIPD in 2007 showed the various forces at work when considering talent and talent management
10
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
11
The talent war goes beyond simple economics which makes it much more complex. Social and attitudinal factors are critical as well.
12
12
LOX-ZZV583123-20070112-SM-SM
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
13
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.
14
What are people saying about talent?
15
‘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
16
‘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
17
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.
18
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
19
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)
20
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
2 3 4 5
"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
1
"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
21
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
22
Managing Talent
Evaluating Talent
Developing Talent
Attracting Talent
Talent management was best viewed as an end to end, joined up, holistic activity
23
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
24
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?
25
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
26
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.
27
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?