aligning talent to business strategy - lemasa · 2017-04-13 · aligning talent to business...

Aligning Talent to Business Strategy

Martin Lanik, PhD

© 2017 Pinsight®, All rights reserved. South Africa April 2017

[email protected]: +27 82 46 24560

mailto:[email protected]

What’s the biggest mistake

managers make?

A. Promoting my best friend

B. Promoting people like me

C. Thinking “I know my talent”

D. Promoting best technical expert© 2017 Pinsight®, All rights reserved.

“I Know My Talent”

• 60% of new managers fail within the first

year (Ashkenas, 2015)

• Confident people are more likely to make

mistakes (Smalarz & Wells, 2014)

© 2017 Pinsight®, All rights reserved.

Agenda

1. Importance of talent analytics.

2. Four-step talent management tied to strategy.

3. How to measure readiness and potential.


Importance of Talent Analytics


“There is an adequate pool of ready

successor candidates for key C-suite

positions.”

25% of executives and board members

agreeThe Institute of Executive Development and Rock Center for Corporate Governance at Stanford University: 2014 Report on Senior Executive Succession Planning and Talent Development.


The Institute of Executive Development and Rock Center for Corporate Governance at Stanford University: 2014 Report on Senior Executive Succession Planning and Talent Development.


At the higher end, what’s the annual

development spending per leader?


What’s the annual development spending

per high-potential?


Your High-Potential Program



12% Drop out before finishing $85,392




40% Promoted but fail $284,640





33% Actively seeking other employment $234,828

Center for Creative Leadership, 2010Harvard Business Review, 2010






85% Won’t become successful leaders $604,860


At The End Only 15% Can

Potentially Become Successful

Leaders




85% Won’t become successful executives $604,860


At The End Only 15% Can

Potentially Become Successful

Leaders





The $7,116 investment

just increased to

$47,440


Do you believe that

smoking causes cancer?


Do you believe that

bulletproof vests prevent death?


Do you believe that

assessments predict job success?


Effect Size

Statistical measure of practical significance

The higher the number, the higher the impact


Effect Size

30%

6%10%

54%

Lung Cancer

Genetics Diet Polution Smoking


Effect Size

Smoking – lung cancer r = 0.54

Bulletproof vest – staying alive r = 0.58

Simulation assessment – job success r = 0.53

Ferguson, 2009Schmidt & Hunter, 1998


How You Select “Right” People

0

10

20

30

40

50

60

70

80

Performanceappraisals

Managernominations

Assessments

Frequency AccuracyAMA Enterprises, 2012Corporate Leadership CouncilSchmidt & Hunter, 1998


Oops…Wrong People?





36% “We are not

high potentials!”

Center for Creative Leadership, 2010


No Basis for Observations

We only see performance in current role

• Making predictions of the future is hard

• Even experts can’t perform better than “dart throwing chimps” (Tetlock, 2005)


Quality of Talent Decisions = Quality of Data Used to Make the Decision


4-Step Talent Management Process

Tied to Business Strategy


What Are the Business Goals?

Who is ready now to achieve those goals?

• Less than 25% of managers think their development is critical for achieving business goals (Bersin, 2015)


Mid-Level Leader

What’s the Business Goal?

Establish a strategic direction

Launch a startup or build new

products/services

Implement organizational strategy and

align it with existing operations

Refocus the organization on new markets

or core business

Build a culture of innovation and

continuous improvement

Align the team with organizational

strategy

Better differentiate products/services from

competitors

Combine or restructure business units Boost innovation on the team

Strengthen the brand/reputation and

increase customer loyalty

Enhance customer value proposition by

improving products/services

Implement new systems and processes

Increase performance, retention, and

engagement of employees

Increase customer satisfaction by

improving customer service

Enhance customer value proposition by

improving products/services

Increase profitability through enhanced

efficiency

Increase retention and engagement of

employees

Increase customer satisfaction by

improving customer service

Build strategic alliances with suppliers,

vendors, or business partners

Improve efficiency of operations Increase retention and engagement of

team members

Build a high-performance culture Turnaround team performance by creating

accountability

Build a high-performing team

Senior Leader

Manager Level


Different Skills for Different Goals

Increase Customer

Satisfaction

Focus on Customers

Create Buy-InEliminate Barriers to

Change

Develop Capable Teams

Mentor & Coach


Different Skills for Different Goals

Improve Efficiency

Implement Strategy

Plan and Organize Work

Create Urgency

Analyze Information

Think Through Solutions

Make Good Decisions


Traditional Talent Management

Calibrate/Train Managers

Collect Managers’

Ratings

Discuss Ratings and

Populate 9-box

Facilitate Talent Reviews

Create Talent Pools &

Develop High-Potentials

Achieve Business Goals


4-Step Talent Management

Identify Strategic Direction

Assessment Program

Facilitate Talent Reviews

Create Talent Pools & Develop

Employees


The Missing Piece:

Assessing Readiness for Business Goals

Current Skills Motivation

Learning Agility

Ease of Development

Build new products/services

Refocus on core business

Increase customer satisfaction

Enhance efficiency of operations

Build strategic alliances

Ready Now

Ready in 6 Months

Ready in 12 Months

Not Ready


Ready in 12 months

Not ready at this time

Ready now

Ready in 6 months

De

velo

pm

ent

R

ete

nti

on

Low

H

igh

L

ow

Focus Investment

• Increased visibility

• Access to executives

• Freedom/flexibility

• Promotion/rewards

• Stretch assignments

• Executive coaching

• Leadership training

• Mentoring

• Action/peer learning

• Development plans

Create Talent Pools Based on Needs


Measuring Readiness and Potential


Example


Different Simulations For Different Levels

Set vision and strategy

Implement strategy and translate into operational reality

Oversee individual contributors

ExecutivePresidentChief

Vice PresidentDirectorFunctional ManagerGeneral Manager

Frontline ManagerSupervisorTeam LeaderProject Manager

Senior Executive

Mid-Level Leader

Frontline Manager


How It Works

Schedule simulation

Complete pre-work

Simulationexperience

Receive results

Get results within 24 hours after the simulation!

3-hour immersive simulation

Realistic business scenario

Online scheduling


Group Analytics - Readiness


Group Analytics – 9-Box Grid


Gro

up

An

aly

tics

–

Tra

inin

g N

eed

s


Ind

ivid

ual

Rep

ort

-

SW

OT


Individual Report – Development Suggestions


Where does Pinsight fit in the talent

management process?

What happens after the Pinsightsimulation?

How do leaders respond to Pinsight?

Do they like it?

We have no formal succession process –

will this be ‘too much’?

Common Questions


Aligning Talent to Business Strategy

Martin Lanik, PhD


[email protected]: +27-82 46 24560

mailto:[email protected]

aligning talent to business strategy - lemasa · 2017-04-13 · aligning talent to business...

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