rock stars, ninjas, and gurus—you support your best people, but are your best people supporting...
DESCRIPTION
Managers intuitively believe that investing in people is a key way (perhaps the best way) to develop their organizational capabilities for the long term. But, how do we know that we are investing in the right people? Should we be investing in people at all, or could we instead derive more value from investing in particular roles within an organization that provide the unique fabric of differentiated value that defines a high performing organization? This presentation begins by discussing the strategy mapping approach outlined by Kaplan and Norton [1]and focuses specifically on a customer-focused value delivered by a company as the core of its business model. Building from this we will discuss applying a portfolio approach to talent management [2]by categorizing the various roles in a company and scoring those roles on three categories: contribution to the customer-focused value chain, uniqueness to the organization and variability in performance. Using this portfolio approach allows us to identify the key roles in an organization that provide high value to clients, are genuinely unique to the company and are most conducive to performance improvement—thereby providing the very best candidates for an organization to invest time, money and energy in recruiting/retaining/developing personnel for those roles.TRANSCRIPT
1 1 C a n a l C e n t e r P l a z a , A l exa n d r i a , VA 2 2 3 1 4 T 8 0 0 . 6 6 3 . 7 1 3 8 F 7 0 3 . 6 8 4 . 5 1 8 9 w w w. r o b b i n s g i o i a . c o m
Confidential and Proprietary © 2013 Robbins-Gioia, LLC
Rockstars, Ninjas, and Gurus:A different perspective on managing your workforce
Presented by:John Strohecker, Executive DirectorCommercial and Logistics
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• Why do we need a different way of managing our talent?
• Strategy Mapping
• Segmenting Your Workforce
• Identifying Your Most Strategic Roles
• Assessing Your HR Processes for Strategic Roles
• Tools for Applying These Ideas in Your Organization
• Additional Reading
Agenda
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• McKinsey found that 75% of executives said their firms are chronically short of talent.
• Only 60% of the corporate officers said they were able to pursue most of their growth opportunities. They have good ideas, they have money. They don't have enough talented people to pursue those ideas.
• "Does your company make improving the talent pool one of its top three priorities?" In many companies, only 10% or 20% of corporate officers said yes.
Source: Michaels, Handfield-Jones, Axelrod
In a study of 13,000 executives from over 120 companies…
The War for Talent
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Those surveyed said that over the next 20 years the most important corporate resource will not be capital, strategy, ideas or opportunities, but rather talented people who are technologically smart, globally sophisticated and flexible in their response to changing business conditions and customer demands.
Source: Michaels, Handfield-Jones, Axelrod
“Talent Constrained”
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• Traditional Performance Reviews rate individual performance against annual goals. Better performance = more money
Does this work? Are you investing in the right people?
• What sets you apart from your competitors? How do your best performers align to these functions?
• What if investing in your best people is the wrong way to do business? What if you should be investing in your most important roles instead? Can you do both at the same time?
Some Important Questions for Human Capital Management
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1. Organizations create value for customers through their business model
2. Each role in an organization supports different elements of the business model
3. Some activities create more customer value than others
4. Organizations have a finite amount of money 5. For most organizations employee related costs
are the #1 or #2 cost to the business6. A rational investor allocates funds to the
investment that will yield the greatest return
Basic Premises
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STRATEGY MAPPING
“You can get capital and erect buildings, but it takes people to build a business.”
--Thomas J. Watson, founder of IBM
“An organization is nothing more than the collective capacity of its people to create value.”
--Lou Gerstner, IBM
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Strategic Theme:Operating Efficiency
Strategic Theme: “e-Business”
Long Term Shareholder ValueFinancial
People
Customer
Internal
Attract & Retain Customers
GrowRevenues
ServiceProduct Leadership
HW SW SCM CRM Serv
Integrated Solutions
• Grow revenues and manage cost structure.
Q: “What is our internal capability focus?”
Q: “How will we create customer value?”
Q: “How will we create shareholder value?”
Q: “How will our people embody that?”• Establish a high performance culture based on core
principles manifested in practice.
• Convergence of hardware, software, and services to provide integrated solutions.
• Focus on core processes that drive value—then execute and improve!
Cost Structure
Human Capital
Culture
Organiz.
• Layoffs• IT Services
• Win, Execute, Team• Collaboration
• Governance (CEC)• IT infrastructure
Strategy Mapping
Value DriversStrategic Theme:Operating Efficiency
Key InitiativesMetrics Stratgy Mapping
Long Term Shareholder Value
Financial
People
Customer
Internal
GrowRevenues
Strategy Mapping Worksheet
Cost/Productivity
(π = R–E)
• new• “now”
Human Capital
Culture
Organiz.
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• Categorize your workforce by Function and RoleOne example: Management Consultant (Junior, Mid, Senior)Technology Consultant (Junior, Mid, Senior)Business DevelopersRecruitersFinancial AnalystsHuman ResourcesMarketingProposalsContractsPractice ManagersInternal ITBusiness Unit LeadershipExecutive ManagementFunctional Department Head
Segmenting Your Workforce
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Operational Strategic
Gen
eral
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Spe
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a. Graduateb. Middle Managerc. Middle/Seniord. Senior Executive
Royal Dutch Shell – Talent Segmentation Map
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low
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low Value high
Rel
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Tran
sact
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InternalizationExternalization
Strategic• FOCUS: Commitment - staff based on potential - develop in situ (firm-specific) - equity based pay & benefits - autonomy/self-direction - mistakes drive learning
Complementary
FOCUS: Partnership - select on past experience - develop the relationship - evolving scope - rewards for ideas
Core • FOCUS: Productivity - staff based on current skill - development (job specific) - market-based pay - focus on ST performance - mistakes above the water line
Support • FOCUS: Compliance - standardize/simplify (outsource) - procedural formalization - narrow scope - error avoiding - hourly pay
WARNING: These general trends may not be appropriate for your particular circumstances.
Human Capital Architecture
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CD B
AR&D
ManufacturingOperations
Distribution
TMT
HR
R&D
Diagnostics
Fin
Mfg
R&D
R&DPartners
Low VALUE high
Low
U
NIQ
UE
h
igh
HR
LegalMIS
LaboratoryServices
FinQuality
TMT
Strategic
Core
Complementary
Support
Diagnostics
R&DPartnersR&D
PartnersR&DPartnersR&D
Partners
CustomerService
Sales
Sales
CustomerService
PanBio’s Human Capital Map
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Operational Strategic
Gen
eral
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Spe
cific
a. Graduateb. Middle Managerc. Middle/Seniord. Senior Executive
Royal Dutch Shell – Talent Segmentation Map
HUMAN CAPITAL WORKSHEET
Low VALUE high
Lo
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UN
IQU
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hig
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CoreSupport
Complementary
Human Capital Investment
Skill Area Action Impact
1.
2.
3.
4.
5.
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• Knowing which roles are most valuable is important, but it’s not enough
• Remember premise #6: A rational investor allocates funds to the investment that will yield the greatest return
• So which positions have the greatest opportunity for improvement?
Adding A Dimension
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• Knowing which roles are most valuable is important, but it’s not enough
• Remember premise #6: A rational investor allocates funds to the investment that will yield the greatest return
• So which positions have the greatest opportunity for improvement?
Adding A Dimension
Look for Variability in Performance!
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• Functionality: Processes & Tools
• Vitality: Mindset & Culture
“Companies that invest in human capital, work to develop and retain valued employees, and measure and hold people accountable for that investment have a powerful competitive advantage.”
--J. Randall McDonald, IBM
Talent Management
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Career Management - assignment - path planning
Sourcing - recruitment - selection
Assimilation -on boarding -orientation -culture mentoring
Development - training - coaching
Perf. Mgmt. - appraisal - goal setting - feedback
Rewards - pay - recognition
Engagement - attitudes - behavior
Retention - turnover- value prop
BUILDING FUNCTIONALITY
While the functionality of the talent management system is critically important, success also depends on simultaneously…
VITALITY• Commitment• Engagement• Accountability
TopExecutives
LineManagersHRM
TalentPool
FUNCTIONALITY • Is the system strategically aligned?• Are the practices internally consistent?• Are the processes executed effectively?
Without system vitality, the idea of “best practice” in talent management means little.
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Sourcing - recruitment - selection
Assimilation -on boarding -orientation - culture mentoring
Development - training - coaching
Career Management - assignment - path planning
Perf. Mgmt. - assessment - goal setting - feedback
Rewards - pay - recognition
Engagement - attitudes - behavior
Retention - turnover- value prop
Source: Ready & Conger (2007)
1 2 3 4 5
Assessing Functionality
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1. Select 1-3 strategic jobs: (a) critical to performance of the enterprise, (b) unique skills that are difficult to replace, and (c) variability in performance across individuals.
2. Identify the competencies (knowledge, skills, and personal attributes) needed for success.
3. Make a spider diagram (for each job) that rates the effectiveness of talent management practices (scale 1=poor, to 5=excellent).
4. Make recommendations to enhance:
(a) functionality of the system—use of best practice, effective execution, aligned w/ needs of enterprise, mutually reinforcing,
(b) vitality of the system—commitment, engagement, and accountability of leaders, managers, and employees.
Sourcing - recruitment - selection
Assimilation -on boarding -orientation
Development - training - coaching
Rewards - pay - recognition
Engagement - attitudes - behavior
Retention - turnover-total reward
1 2 3 4 5
Deployment - assignment - career mgmt.
Perf. Mgmt. - appraisal - feedback
Assessing YOUR Talent Management System
Deployment - assignment - career mgmt.
Sourcing - recruitment - selection
Assimilation -on boarding -orientation
Development - training education - coaching
Rewards - pay - recognition
Engagement - attitudes - behavior
Retention - turnover-total rewards
1 2 3 4 5
Perf. Mgmt. - appraisal - feedback
Job Title: ____________________________________________________________
Competencies:
Talent System Diagram:(Ratings: 1= poor, to 5= excellent)
Knowledge•
• •
Skills•
•
•
Attributes•
•
•
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If you work through these steps you’ll have
• Clear of how your organization creates customer value
• Segmentation of your workforce by role• Skills and behaviors, by role, which create
positive results• Human Capital Architecture that maps roles
to value creation and uniqueness/specificity• Identified Strategic roles – critical positions
with high variability • Assessment of HR processes vis-à-vis
strategic roles – what processes should you invest in to support your most strategic roles?
Putting It Together
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Additional reading
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Additional Reading
Confidential and Proprietary © 2013 Robbins-Gioia, LLC
Thank You For Your Time
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