Cover Page

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Cover Page
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Introduction
Fueling the Talent Engine Finding and Keeping
High Performers examines how an integrated
approach to talent management helps drive
business results at Yahoo! Inc. Yahoo has shown
its business acumen by becoming a leader in the
online-content market. It has been the focus of
numerous articles and reviews because of its
dynamic management and its corporate culture,
which the company actively promotes to attract
the best talent. This video shows what Yahoo! d
oes to become an employer of choice, and what it
does to select, orient, develop, reward, and
manage top talent. It shows how senior
executives use the concept of managing talent as
a central hub in the firms strategy
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Profile of Yahoo! Inc.

• Yahoo! Inc. provides Internet services to users
  and businesses through the Yahoo! Network, and a
  range of tools and marketing solutions for
  businesses in the Unites States and
  internationally. It offers an array of
  communications services, including mail,
  messenger, calendar, chat, greetings, clubs, and
  photos and various commerce services, such as
  shopping, auctions, finance, and travel as well
  as content and media-programming services in
  various areas, including sports, music, movies,
  news, and games through partnerships with various
  content providers.
• In addition, the company provides a range of
  personalized information on wireless devices,
  including wireless phones, two-way pagers, and
  personal digital assistants. Yahoo! also offers a
  range of services for businesses and enterprises,
  including Corporate Yahoo!, an information-
  portal solution that enables companies to
  communicate and interact directly with their
  employees, customers, and shareholders Yahoo!
  Broadcast Services provides Internet audio and
  video streaming solutions for corporate and
  consumer communications and Yahoo!'s Small
  Business services enable small businesses and
  professionals to establish and grow a business
  presence

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Profile of Yahoo! Inc.

• with various Yahoo! services, as well as Yahoo!
  Fusion Marketing that unites its media,
  e-commerce, direct marketing, broadcast, and
  communication tools. Yahoo! also has strategic
  alliances with SBC Communications, Inc. BT Group
  plc Rogers Cable, Inc. and Verizon
  Communications, Inc. The company was founded by
  David Filo and Jerry Yang in 1994, and it is
  headquartered in Sunnyvale, California.
• Yahoo! has approximately 8,700 employees
  worldwide, and earned revenues of 3.6 Billion in
  2004, up from 1.6 Billion in 2003. During the
  same period, net income rose from 238 Million to
  840 Million. Additionally, Yahoo!s balance
  sheet grew from 5.9 Billion to 9.2 Billion.

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The Talent-Strategy Framework
Source Global Learning Resources
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The Talent-Strategy Framework
The Fueling the Talent Engine Finding and
Keeping High Performers video is based on
understanding how strategic planning and
execution work within an organization. Without
this fundamental understanding, it will be very
difficult to appreciate how HR strategy is tied
to the overall organizational strategy.
The case study uses the Talent-Strategy Framewor
k model on the previous slide to explain how
strategy works in an organization. Note how the
talent-strategy is a circular process that
aggregates six distinct pieces into an overall
strategy framework.

• PLAN who and how many An organization must have
  a plan about where its HR strategy is going to be
  leading the company. The HR department must have
  clear and measurable goals that are aligned with
  the overall corporate strategy.
• ATTRACT those you want Once a plan has been
  determined the HR department must develop methods
  to attract the necessary quality and quantity of
  new hires. The strategies should highlight the
  benefits of being an employee at the company.

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The Talent-Strategy Framework

• RECRUIT the right people In addition to
  attracting talent, it is often necessary for an
  organization to actively recruit new talent.
  Many highly qualified individuals, which an
  organization seeks, may not be looking for a new
  job, or be otherwise attracted to apply for a
  position at you company. These people must be
  actively and directly recruited.
• ASSESS them correctly Once interest has been
  generated and there is a steady stream of
  applicants, the companys HR department must
  differentiate between unqualified candidates, and
  those who can provide value to the company while
  being able mesh with the companys corporate
  culture.
• DEVELOP them carefully Simply finding talented
  individuals, and hiring them, is not sufficient
  to have highly effective HR tactics. It is rare
  that an individual, no matter how qualified, is a
  perfect fit for a given position. New-hire
  training is an essential part a talent strategy.
  Additionally, as time passes, talent needs of a
  company will change and the skill sets of its
  employees must be updated and developed
  appropriately.
• RETAIN only those you want Even with extensive
  selection practices coupled with training and
  development programs, HR mistakes happen. It is
  necessary to continuously evaluate employees and
  their motivations. Highly effective employees
  should be rewarded while the lowest performers
  should be removed from the organization.

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Yahoo! Case Study

• The Yahoo! Case Study features the following
  participants
  
• Wayne Cascio, Ph.D.
• Lloyd Braun, Senior Vice President Media
• Heidi Burgett, Corporate Communications
• Susan Decker, Chief Financial Officer
• Loree Farrar, Vice President of Global Rewards
• David Filo, Founder
• Phu Hoang, Vice President of Engineering
• Carol Mahoney, Senior Director of Talent
• Ken Perluss, Director of Technical Talent
  Acquisition
  
• Libby Sartain, Chief People Officer
• Stephanie Tate, Senior Talent Acquisition
  Manager
  
• Cheryl Van, Vice President of Talent Acquisition
• Jerry Yang, Founder

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Summary
The Yahoo! video case study is an ideal
educational resource for an undergraduate,
graduate, or executive education program, for HR
staff training within companies, and for HR
professional educational seminars and programs.
You have several options available for presenting
the Yahoo! case study. Besides the DVD video, we
have provided many different slides from which
you can tailor you presentation, if you desire.
One option is to show the DVD first, followed by
the PowerPoint slides, included in this
discussion guide, to provide a more in-depth
understanding of the company and its business.
After reviewing the profile of Yahoo!, Inc. and
discussing the key points of the Talent-Strategy
Framework, consider discussing the question
slides with students or HR professionals. We
have used this approach successfully with
graduate business students. A second option mig
ht be more appropriate in an undergraduate HR
course. For students with little work
experience, strategic HR alignment in the
recruitment and retention of talent is a
difficult concept to grasp. Some students are
not exactly sure which elements of strategy and
HR talent initiatives must be in aligned.
Students probably understand that aligning HR
strategy with
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Summary
corporate strategy is a good thing, but they may
be uncertain of the payback potential that
effective talent management will provide. The
Yahoo! case study provides an excellent example
of a high-performing company where a focus on
talent management pays off in results.
As a way to set the stage for the DVD case study
, you may want to start with a few PowerPoint
slides to introduce the company, what it does,
and to provide a quick overview of what talent
management means. It would be helpful to walk
through the Talent-Strategy Framework slide.
After this brief introduction, show the DVD. Th
en engage the class in a discussion of what
Yahoo! did that they thought contributed to
effective talent management and what more they
could do in the future. You can select from the
questions that follow to clarify what Yahoo!
does. You may want to discuss how recruiting,
selection, training and individual performance
management contribute to talent management and
alignment. These are all important issues in an
HR course.
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Summary
You might want to ask other questions such as
How does the company gain from achieving
strategic HR alignment through its talent
management practices? What are the obstacles
that make the achievement of effective talent
management practices difficult? What must HR
measure to achieve effective talent management
practices? How would students like to work for
Yahoo!? Why dont more companies have the types
of talent management strategies that Yahoo! has?
The Yahoo! case study will certainly stimulate d
iscussion and challenge students whether they are
in an HR or business program, as well as HR
professionals, to think through the benefits of
HR talent strategies being aligned with the
overall organizational strategy, and how to
achieve effective talent management strategies.
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What does talent management mean, and how is it
viewed at Yahoo!?
Q.
A.
Talent management means considering an employees
talents during hiring, as well as that employees
career development and analyzing why people
leave a company. Yahoo considers talent
management to be central to its corporate
strategy.
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How is talent incorporated into the Yahoo!
business model?
Q.
Yahoo!s business model is one in which constant
innovation is necessary. The philosophy of the
company is around great products, ultimately
equaling great business. Yahoo! promotes a
culture where emphasis is placed on high
performance, and high performance is actively
rewarded.
A.
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How does Lloyd Braun, SVP of Media, describe
outsiders reactions to Yahoo!s corporate
culture?
Q.
Lloyd explains that when talking to his friends
in the traditional media business, within two or
three minutes they are saying Ive never heard
you like this, Ive never seen you like this.
Like theyre ready to join right then and there.
Even people who are not employees of Yahoo! are
easily affected by the energy that they see and
feel in the culture of Yahoo! it is this energy
that helps the company to attract and retain
highly qualified individuals.
A.
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How does Lloyd Braun illustrate the statement,
Its important to go to work at a place where
youre connected to a dream?
Q.
Lloyd explains that it is the passion he feels
for his job at Yahoo! that drives him to do his
best every day. He says, Thats very much what
has always fueled my career. At Yahoo! it is
the collective passion that all of the employees
feel that helps to motivate everyone, and that
drives product development and improvement.
A.
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What does a systematic process of managing talent
imply?
Q.
Managing talent doesnt just happen, rather its
a systematic process that includes targeted
recruitment and retention programs, along with
policies that encourage career growth and
development opportunities, reward effective
performance, and build a deep reservoir of
successors at every level.
A.
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What are some of the premium services, for which
Yahoo!s customers pay?
Q.
Yahoo!s business model provides services to most
users at no fee for example, Yahoo! Mail. But
Yahoos profitability is based on its for-pay
services, these include Yahoo! Personals, a
dating-subscription service, Yahoo! Music, where
people pay for music downloads, and a wide range
of small-business hosting services.
A.
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In 2004 Yahoo!s sales increased 120, while its
net profit increased 253. How did Yahoo!s
business model provide for such dramatic growth?
Q.
Yahoo!s business model is deceptively simple.
The more time that users spend with Yahoo, the
more advertising it can sell, and the greater the
likelihood that someone will pay for premium
service or content. Today Yahoo counts nearly
half a billion users in twenty-five countries and
thirteen languages.
A.
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How has Yahoo! managed talent during its high
growth?
Q.
Sue Decker explains that many companies falter
during a growth stage because they fail to manage
talent properly they fail to realize that they
need to attract different kinds of people at
different stages. Yahoo! recognized this from
the very beginning, and has developed policies
around identifying and nurturing current talent,
as well as developing succession plans to
maintain a high level of employee competency.
A.
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How does Yahoo! differentiate itself so that
prospective employees will want to work there?
Q.
Libby Sartain, Chief People Officer, explains one
way in which employees at Yahoo! find their work
to be rewarding. At many companies an employee
can work on a project but never see it through to
fruition, nor ever see the results of their own
actions. At Yahoo! the effects of a newly
developed product can be seen immediately when
the product is released on the Internet. I can
see that Ive put it up on the site today, and 2
million people used it tonight.
A.
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What does Carol Mahoney, Senior Director of
Talent, mean when she refers to talent magnets?
Q.
In addition to job applicants that seek out
Yahoo!, Yahoo! is always looking for passive
candidates. The talent magnets help with this
effort they are employees who are very well
known in their fields. These magnets contact
individuals who could potentially provide value
to Yahoo!, but who have not applied for a job.
The magnets contact these people directly by
email, or by hosting informal talks.
A.
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What does it mean to have an integrated talent
management strategy?
Q.
An integrated talent management strategy begins
by identifying workforce needs, attracting and
recruiting the kinds of people who fit those
needs, assessing their skills, knowledge, and
values, developing them, managing their
performance, and ultimately retaining those you
want to keep.
A.
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How does Yahoo! Promote the idea that high
performance is valued?
Q.
Ken Perluss, Director of Talent Programs, says
that it is so important to Yahoo! to have a job
done correctly, that the company would rather
leave a position unfilled than hire someone who
whose performance is not up to the standards that
the company requires. This implies that Yahoo!
employees belong to an elite club, a club of
which they are proud to be members.
A.
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How do Yahoo!s business model and corporate
culture reward successful employees?
Q.
Yahoos structure is different from that of many
global companies because its employees are able
to see the effects of their efforts they can see
a direct connection between their hard work and
the success of the company, and the furthering of
Yahoos social goals. Phu Hoang, VP of
Engineering, says, its about getting close to
fulfilling something wonderful for society that I
think attracts a lot of people.
A.
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How does Yahoo! instill its corporate culture in
new hires?
Q.
Lloyd Braun says that on his first day he was
taken under the wing of human resources, meeting
with various people who taught him the business.
The order of the presentation was so smart
they were laying building blocks both in terms
of people to meet and what they did, and then in
terms of what the company did. By making a
concerted effort to have a formal orientation for
new hires, Yahoo! aides their ability to become
productive employees quickly.
A.
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According to Phu Hoang, VP of Engineering, how is
managing brilliant people different from
managing others?
Q.
Yahoo!s business model requires constant
innovation. The people that Yahoo! hires have
immense talent to come up with that innovation
things that you cant think of, thats why you
want them in here. Phu explains that the types
of people that drive Yahoo! would not perform
well if the company did not give them enough
freedom. At Yahoo!, brilliant employees are
guided toward the corporate vision, then given
free reign to find the best path to that goal.
A.
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How has the scope of the jobs of Yahoo!s
employees changed as the company has grown?
Q.
Early in an entrepreneurial situation there are
few employees who must perform many varied job
functions. As Yahoo! grew, jobs became more
specialized and the company transitioned to
employees with more vertical expertise. Today
Yahoo! employs many very specialized and highly
regarded people. Sue Decker says, people are
getting to work with stars in their areas we
have some of the nations leaders in all
functional areas.
A.
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Aside from a healthy corporate culture, how does
Yahoo! reward its employees?
Q.
A.
Yahoo has developed a benefits package that
includes equity ownership of the company.
Employees are given stock options, and, in
addition, they can participate in an employee
stock-purchase plan. This allows employees to
share in the success of the company, and it
provides a real sense of ownership.
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How does the Yahoo! Superstar program reward
employees and show that they are valued?
Q.
A.
Loree Farrar, VP of Global Rewards, says that the
Yahoo! Superstar program allows employees to
nominate each other for an award when they do
something exceptional. A small number of
employees win every year, and theyre all flown
to the United States to have dinner with the
executives. Each of the winners is also given a
significant cash prize.
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What does Yahoo! do to address the future talent
needs of the company?
Q.
A.
Studies have shown that it is not enough for a
company to simply find the right talent. Even
after being hired, talent management is still
necessary. At Yahoo!, post-hiring talent
management takes the form of a performance
management system that gives each employee a
career-development plan that tells them what they
specifically need to work on.
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How does Libby Sartain, Chief People Officer,
view turnover?
Q.
Every company has turnover, but not all companies
effectively analyze and manage their turnover.
Libby Sartain segments the turnover at Yahoo!
into voluntary, regrettable turnover, and
involuntary or unregrettable turnover. By having
a regrettable-turnover goal of less than 5
annually, Yahoo has created a program that
anticipates, manages and reduces the loss of
essential talent.
A.
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How does Yahoo!s corporate culture reduce
turnover?
Q.
By giving employees freedom in their work
activities, Yahoo! has created a situation where
employees are able continuously to create new
challenges for themselves. This reduces
repetitiveness and increases job satisfaction.
Lloyd Braun says, they dont have to leave in
order to get challenges and opportunities.
Yahoo!s managers excite employees with the
corporate vision, but individual employees are
able to redirect their own energies and to work
on new challenges in reaching that vision.
A.
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With the increasing competitiveness in business
today, what are the implications for talent
management in the near future?
Q.
A.
Wayne Cascio explains that in todays global,
fast-moving business environment, the only way to
outrun the competition is through innovation, and
that means having people who make things happen.
What this implies is that the wise management of
talent is no longer just a competitive advantage,
its a competitive necessity.
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Lesson 1
Make talent management a top priority in your
organization.
Recognize that you can have a brilliant strategy,
but without the talent to execute it, it will
never materialize.
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Lesson 2
Develop a comprehensive approach, as well as a
commitment to track, develop, reward, and keep
top talent.
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Lesson 3
Ensure that HR plays a strategic role.
HR should be anticipating trends in the outside
environment that affect the management of talent
in your company, such as demographic, labor
market, or social trends, and it should be
identifying their implications with respect to
the ability of your company to execute its
strategy.
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Lesson 4
Develop a well-crafted story that describes your
companys mission and values.
Your employees must have a clear idea of what
your company stands for. You must live those
values every day, and make sure that everyone
from the mail-room to the board-room does too.
Does your story get people excited to come to
work each day?
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Lesson 5
Understand why people join your company, why they
stay, and why some of them leave.
Develop an action plan to accentuate the
positives and minimize the negatives.