comp based talent mgmt system

7/31/2019 Comp Based Talent Mgmt System

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How To Build ACompetency-Based

Talent ManagementSystem

Presented by Darin Phillipsat the 2004 Gulf Coast Symposium on

Human Resource Issues


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2004 Gulf Coast Symposium on Human Resource Issues Session 404: How to Build a Competency-Based Talent Management System 2

Agenda

Competencies

Applications

Profiling

Assessing

Talent Management


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What is a Competency?

Behavioral or technical skill, attribute(e.g. intelligence), or attitude (e.g.optimist)

Measurable and/or observable Related to success at work (competent)

or failure at work (incompetent) 60%


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Building a Model

Critical Incident Debrief 360 Expert Discussion

Compare Assessment to Performance

Buy one


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Commercial InterpersonalModels

85% of all models include the same content DDI developed over 30 years of research

Hay/McBer studied 286 situations and foundthat same 21 competencies differentiated

performance Other research-based models

Lomingers Leadership Architect

Center for Creative Leadership (various 360s)

Saville Holdsworth Limited (360) Personnel Decisions, Inc.s Successful Manager/ExecutiveHandbook

Other models based on 360 results Bernard Bass

Clark Wilson


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Different for Each Level

IndividualContributor

Supervisor Manager Executive

Knows Customer Work Business Industry

Manages Work People Process Systems andOrg

Focus Up Up & some

Down

Down &

some Up

Down

Strategy Hears it Shares it Shapes it Creates it



How to Create Value

Effectiveness Increase revenue

Increase productivity

Improve quality Improve customer satisfaction

Efficiency

Reduce costsReduce cycle or delivery time



How Competencies ImpactValue

Attract Select

Develop

Deploy Retain

top talent

Example from Development:

Train 100% of field sales at orbelow 80% of industry average

cost so that Mystery Shopperratings are no lower than 70%and average 90% in the areas ofproduct knowledge, helpfulnessand courtesy.

Reducecosts

Improvecustomer

satisfaction



How Competencies Help HR

Research clearly indicates that HR can addmarket value to the organization if

HR processes are aligned with and support thebusiness strategy

HR processes are excellent, streamlined andintegrated

HR systems are hard for competitors to imitate

Research also indicates that HR practices can

lower shareholder value if Quality is poor or effort is based solely on theory

Results are not measured

Potential overshadows performance in HR decisions


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Begin With the End in Mind

ATTRACT

PROFILES



Attract

THE PROCESS

Define Talent Profile - What do these people look like?Determine Location (Internal/External) - Where are they?Target Individuals - Who are they?Develop Attraction Strategy - How to get them on board?Establish Timing - When to bring them in?

WHEN TO DO IT

Current shortageFuture need

HOW TO DO IT

Current Shortage- Identify key positions where talent bench is thin/non-existent- Identify possible internal fits- Identify reasons for interest/lack of interest in position- Identify possible external fits- Create employment brand with strong performance and talent management reputation

Future Needs- Anticipate possible future scenarios- Build future success profile(s)- Determine depth of talent bench for possible futures-Bench Strength available within organization : Target individuals and discuss interest in future possibilities

-Bench Strength not available within organization : Select Build/Borrow/Buy/Bind strategy to meet needs



Select

THE PROCESS

Identify Needs - When will I have a need to recruit?Define Talent Profile - What will a successful candidate look like?Determine Location (Internal/External) - Where can I find them?Build Talent Pool How can I get the best of them together?Create Selection Guidelines - How will I make a choice?

WHEN TO DO IT

Position becomes/will become vacantNew position may be required

HOW TO DO IT

Position Vacancy- Review/Modify position profile- Determine internal availability or need to go to market- Create Recruitment Guide and Candidate Selection documentation

New Position- Define Success Profile- Follow above steps


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Develop

THE PROCESS

Identify Needs What do we need to build?Make Investment Decision - Why should we invest in person X?Clarify Outcomes What will be the required outcome of development?Create a Plan What developmental action will be most effective?Manage Learning What will be done to support the required change(s)?

WHEN TO DO IT

- Poor/Under Performance (Focus on Lagging Capabilities should have had them to start with)

- Develop Superior Performers (Focus on Leveraging Capabilities what differentiates high performers)- Prepare individuals for the future (Focus on Leading Capabilities what will they need to be effective in thenext position/level)

HOW TO DO IT

Poor/Under Performance- Identify indicators of poor performance (e.g. Quality of work, Timelines of delivery, etc.)- Translate indicators into development needs/Match against current position profile- Target high impact development interventions (Train, Apply, Feedback, Adjust)

- Track change

Developing Superior Performers- Identify high performers (have been able to consistently deliver results that exceed expectations)- Build high performer profile/Review profile against research profile for level- Target individuals who are already solid performers and match them against the high performing profile- Develop performance enhancement plans (specifically focused on key competencies)

Preparing for the future- Build potential skills- Build for the next level to have more talent from which to select



Deploy

THE PROCESS

Identify Needs Do we have the right people in the right place with the right skills doing the right work?Define Timeframe Current performance improvements or future scenario planning?Select Intervention - Performance Management or Talent Management?Define Impact Right people with right skills in right position at the right time?Create a Plan Define the desired outcome and supporting steps?

WHEN TO DO IT

- Performance not aligned with business direction- Not responding to business changes/needs

HOW TO DO IT

Performance Management- Cascade SMART objectives down based on company strategic plan- Provide multi-rater ongoing feedback on performance against objectives- Build pay-for-performance pool from business results and distribute accordingly

Responsiveness- Build database of mission critical technical skills, experiences, competencies- Build position and personal profiles using the database- Base build/buy/borrow/bind/bounce decisions on results of what-if scenario reports



Retain

THE PROCESS

Identify Key TalentWho do we need to Bind?Determine Source of Value - What makes them key talent (Scarcity or Mobility)?Manage Future Value How do we maintain their value ?Develop Retention Plan How will/can we keep them?Manage Risk How can we minimize the risk of losing them (Monitor motivation and build back-up)?

WHEN TO DO IT

- Individuals have a unique/scarce portfolio of capabilities that is highly valued by the business- Individuals have a portfolio of capabilities that makes them extremely mobile across the business

HOW TO DO IT

Unique/Scarce Portfolio- Use a human capital balance sheet to identify the bench strength of key positions- Identify individuals on that talent bench who stand alone, i.e. they have a good fit to the requirement and there

is a large gap between them and the next best fit- Identify possible talent retention strategies and create Talent Back-Up Plan

High Mobility Portfolio- Use the mobility index to identify individuals with high mobility (either vertically or laterally)- Target development opportunities for horizontally mobile people to improve vertical mobility

For Both : Identify and monitor key retention factors and discuss quarterly at executive level


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Profile Choices

ContentPerformance vs. Potential

Ability vs. Willingness

Point in TimeLagging vs. Leveraging vs. Leading

Organizational Slice

Core vs. Level vs. Family vs. Position Model

Research vs. Expert



PROFILE: Content

What an employee can do

Knowledge & Education

Skills

ExperienceDegree of Proficiency

What s/he will be able to do

Learning capacity

Aptitude

IntelligenceAmbiguity management

What s/he is willing to do

Attitude

Beliefs

Values & Principles

Personality

What s/he wants to do

Career goals

Interests & Motives

Performance Potential



PROFILE: Content

Only focus on what can bemeasured and developed

Attract

SelectDevelop

Deploy

Retain

Capture and leverage thisrare employee

Attract

SelectDevelop (if possible)

Deploy

Retain

You will probably not change

what is almost innateDevelop (if possible)

Deploy

Retain

Capture and use

AttractSelect

Deploy

Retain

Performance Potential



PROFILE: Point in Time

Lagging Leveraging Leading

Improve year-over-year:

1. Develop annualSMART goals (whatto do)

2. Define how the goalsshould have beenaccomplished

(performanceimprovementprofile)

3. Assess performanceand look foropportunities to

improve next time

Become a high-performer:

1. Assess all employees

2. Determine high-performerdifferentiators

3. Compare originalassessments to

high-performerprofile and basedevelopment on gapanalysis

Prepare for thecoming year:

1. Develop annualSMART goals (whatto do)

2. Define how toaccomplish thosegoals (success

profile)3. Assess employee

against the profileand develop skillsand competenciesrequired to succeed

at goals



PROFILE: Organizational Slice

Corewhat a company does that that results insustainable competitive advantage (valuable, rare,difficult to imitate)

Levelwhether you are managing self, others, process,or the organization

Familywhat is unique to similar families of jobs

Positionwhat is unique to each individual job


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PROFILE: Models

Research-Based Model Pro: benchmarks established against proven highperformers

Con: the job may not accurately reflect one with thesame title in your organization, industry, or culture

Use When: No experts are available

It is a completely new position with poor definedresponsibilities and objectives

Validating an expert model

How to: Use or create software that runs gap-analysis reports from a

database of research on your competency model

Manually calculate technical or leadership skills fromavailable research


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PROFILE: Models

Expert Model Pro: built specific to the job requirements and

environment

Con: takes key stakeholders off the job duringbuilding and audit/validation steps

Use When: Position has a clear history (or clearly understood change)

and performance objectives

High performers have been clearly identified and a 360 poolof raters are available to build and audit/validate

How to: High-Performer Profile

Success Profile

EXPERT: High Performer


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EXPERT: High-PerformerProfile

1. Assess all incumbents using 360 pools.2. Gather performance data and build

standard distribution.

3. Isolate profile characteristics that areunique to the high-performers andthreshold-performers.

Performance

Top

Middle

Bottom

Low Medium High

Competencies

What is inthis cell that

is not inthese cells?


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EXPERT: Success Profile

1. Gather existing data on past, present, and future of the position

1. Who has succeeded and why2. Accurate job description that includes education, experience, technical

knowledge and skills

3. Annual performance objectives

2. Bring expert panel together (360 pool)1. Boss and boss boss

2. Past and present incumbents3. Direct reports

4. Customer of work (outputs)

5. Vendor of work (inputs)

6. Collaborators

7. HR

3. Expert panel defines current and future objectives,accomplishments, standards, and challenges for performer (notskills or competencies required)

4. Experts use those lists to define mission critical technical KSAs,experiences, and proficiency then interpersonal competencies

5. Audit/Validate using Research-Based Models


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Audit/Validate the Profile

Some electronic tools can produce instantprofiles based on the researchHomemade MS Access database

Buy benchmark software

Manual comparisons can be done usingresearchYour vendors 360 validation reports

Some certification manuals statistics Translations can be generated

Comparative analyses


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Audit/Validate the Profile

Weight the final research-based profilecompetencies to end up with a fulldistribution

Compare and contrast to the Expert

Model profile Bring the expert pool back together and

have them explain/justify the differences

between the research-based profile andthe one they generated

Adjust the Expert Model profile asnecessary


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Assessment Choices

OwnershipEmployee vs. company

FormatSort vs. electronic vs. pen/paper

NumberEntire set vs. profile only

Perspective

Self vs. boss vs. 360

DistributionAbsolute vs. forced rank


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ASSESSMENT: Ownership

EmployeeConfidential developmental information

Typically done on a 5-point scale withcomments added

Company

Used by employee for development and bythe company for workforce planning

Typically done using a flat sort withoutcomments added


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ASSESSMENT: Format

SortCompetencies on cards

Electronic

Online or on disk Pen and Paper

Competencies on checklist


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ASSESSMENT: Number

Entire setTakes more time

Can be used for any purpose

Profile onlyShorter assessment time

Limited to one-position analysis


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ASSESSMENT: Perspective

SelfLeast accurate, especially on interpersonalskills

Most people over-rate themselves with the

exception of high-potentials, they always seeroom for improvement

BossLooks at what was done and not how it was

done

360 Pool (aka Multi-Rater)Balanced and perceived as fair

Direct reports rate higher than other groups


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ASSESSMENT: Distribution

Absolute SortAssign any rating to any competency

Susceptible to rater bias, tendency to putmajority of cards in an extreme pile

Forced Sort

Equal number of competencies in each rating

If using Not Applicable rating, subtractnumber in that pile from total and divide theremainder by total number of availableratings


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Gap Analysis

Importance

High Medium Low

Skill

High Clearstrength

Keep onusing

Bewareoveruse!

Medium

Importantneed

Keep onusing

Ignore

Low Urgent

needNeed Ignore


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Putting It All Together

Identify the best of the best Identify potential differentiators

Assess everyone against the database ofpotential differentiators

Isolate the true differentiators

Compare and contrast everyone to the high-performer profile

Develop plans to source, attract, select,develop/succeed, deploy, and retain

Reward high performers financially and bestmatching employees with moves


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Applications

ATTRACT

PROFILES


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Darin Phillips, PhD, CPT

Darin believes in sharing best practices so that HR can

increase their strategic role in organizations and buildglobal credibility through value-added contributions tothe business. By adopting a model of transferringresearch-based and field-tested best practices (asopposed to creating confusion and dependency likemany consultants), Darin has built a sizable globalnetwork of professional contacts that freely share theirown lessons and new ideas. This model has createdlong-term value for everyone involved and has allowedDarin to stay abreast of contemporary benchmarkswhile still maintaining a normal career and family life.This includes spending a lot of quality time with his 15-year old and 2-year old sons, loving wife, and feistydog after getting home from his job at Royal Caribbean

Cruise Lines.


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Darin recognized several years ago that the manualprocesses for leveraging the best practices incompetency-based talent management systems wasincredibly time-consuming and labor-intensive(expensive). Therefore he created an automated

solution for his employer that integrated performanceand talent management. Four years later he is on histhird generation of software and it is even more robustand user-friendly than every before. If you or

someone you know would be interested in test-drivingthe latest automated solution please contact Darinswife, Francisca Phillips, [email protected] orvisit our website at http://www.darinphillips.com andfollow the links!
mailto:[email protected]?subject=Please%20let%20me%20test-drive%20the%20integrated%20software!!!mailto:[email protected]?subject=Please%20let%20me%20test-drive%20the%20integrated%20software!!!http://www.darinphillips.com/http://www.darinphillips.com/mailto:[email protected]?subject=Please%20let%20me%20test-drive%20the%20integrated%20software!!!


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Darin was originally known for his activity-basedtraining solutions. He took experiential learningactivities that were being used in schools andcounselors offices and re-wrote many of them to helpcorporate groups learn how to work more effectively

together. These activities teach adults how tocommunicate more effectively, lead during times oftransition, and be a more effective team player. If youare interested in those activities please look up Darins

books at http://www.booklocker.com
http://www.booklocker.com/http://www.booklocker.com/http://www.darinphillips.com/mailto:[email protected]?subject=Please%20let%20me%20test-drive%20the%20integrated%20software!!!


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Final Notes

This presentation is NOT copyrighted in anyway, shape, form, or fashion. This means youmay pass this presentation on to anyone whoneeds or wants this type of information without

asking for permission! All I ask is that youdont remove any of the information about theauthor or take credit for the material yourself.Please give credit where credit is due when

sharing best practices with others!

Thank you and have a great day!

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