Talent Management, some myths, some insights

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Talent Management, some myths, some insights

• A collaboration of incompetents, no matter how
  diligent or well-meaning, cannot be successful-
  Michael Schrage

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The Business Case for Top-Tier Leadership
Organizations with top-tier leadership are much
more likely to outperform competitors in the
marketplace
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9.6
Takeaway 1 Strong Relationship Between
Leadership Quality and Financial Performance
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(5.8)

• Although long the domain of HR and academics,
  leadership quality has a real, quantifiable
  impact on the business.
• The Councils research finds that organizations
  with top-tier leadership significantly
  outperform organizations that do not.
• While the data presented at right do not
  constitute a mathematical proof of the impact of
  leadership quality, they do suggest a strong
  relationship between leadership strength and
  business performance.

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Organizations with Bottom-TierLeadership Quality
Organizations with Top-TierLeadership Quality
translating into significant differences in
financial value relative to peers
500M
384 Million
0
(232 Million)
(500M)
Organizations with Top-TierLeadership Quality
Organizations with Bottom-TierLeadership Quality
Source Corporate Leadership Council 2003
Succession Management Survey.
Leadership quality is measured by top
executives performance against goals as well as
select leadership quality metrics, such as
leading and managing people.
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Raising Talent Management as a Top Priority for
CEOs and Heads of HR
Source Corporate Leadership Council Realizing
the Full Potential of Rising Talent Volume II
Strategies for Supporting the Development of
High-Potential Employees, 2005, pg 4.
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Council Members Report Significant Failure Rates
Among Externally and Internally Hired Executives
Source Corporate Leadership Council Realizing
the Full Potential of Rising Talent Volume II
Strategies for Supporting the Development of
High-Potential Employees, 2005, pg 19.
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Organizational Leadership Gaps Indicate
Insufficient Availability of High-Quality Talent
Source Corporate Leadership Council Realizing
the Full Potential of Rising Talent Volume II
Strategies for Supporting the Development of
High-Potential Employees, 2005, pg 8.
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Some myths about talent

• Talent is about to be in the top 10 of the
  organization
• Talent is relevant only at executive level
• A talent will remain a talent whatever the
  organization will join
• Talent is fixed
• The overall performance of a company is depending
  on the mass of individual talent. More talents
  means better.
• Talents does not need to know that they are
  talents
• Talent is only about high potential
• There is a clear correlation between potential
  and performance

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Source Corporate Leadership Council Realizing
the Full Potential of Rising Talent Volume I A
Quantitative Analysis of the Identification and
Development of High-Potential Employees, 2005, pg
19.
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HIPOs Stall Before Reaching Predicted Potential
Source Corporate Leadership Council Realizing
the Full Potential of Rising Talent Volume II
Strategies for Supporting the Development of
High-Potential Employees, 2005, pg 9.
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High Performers Are Not Always High Potential
Source Corporate Leadership Council Realizing
the Full Potential of Rising Talent Volume I A
Quantitative Analysis of the Identification and
Development of High-Potential Employees, 2005, pg
xii.
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Goal setting
The Talent process/ Model
Part 2 Data Review and Verification
Part I Data Sources/ Collection
Part 4 Data Analysis/Use
Part 3 Data Consolidation
HR QA
Organization
Career Development Discussion Line manager
and employee

• Recruitment plan
• strategic recruitment
• Forecasting
• Talent Management
• and Development plan
• Retention Plan
• Performance
• Management Plan
• Ensure alignment with,
• and design the business
• strategy

• People Balance
• Sheet
• analysis of Key
• Measures
• Headcount
• Succession/ Cover
• Performance
• Potential
• Risk/Retention
• Skills Analysis
• Staff Turnover

Strategic People Review with Line Manager,
General Manager, Director, and MD
Psychometric Assessment Data
Performance Reviews
Strengths Development needs Aspirations Career
Advice
Individual Development Plan (IDP)
Training records/ Competency acquisition
Individual
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SABMiller Executive/ Managerial Battery
The current model used in the business is a
combination of the following aspects/criteria
that are critical to predicting and sustaining
success
Cognitive
Judgment/ decision making
Personality
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Performance definitions
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The potential model When we assess Potential
we use 4 principles and 3 key inputs
principles
tools/inputs
When considering potential the 4 underpinning
principles are 1 Future contribution - Level
of complexity can the employee grow to manage in
terms of strategy, execution, people management
and leadership, and technical expertise - Level
of uncertainty/ ambiguity can she/he manage
comfortably - Additional roles/positions can
she/he move into 2 Marketability -
Demonstrated technical competence - Experience
and achievements - Career history 3 Pace of
Progression - Pace of growth relative to his/her
peers - Track record 4 Leadership Attributes -
Demonstrated leadership attributes competencies
With these 4 principles in mind, we use the 3
tools/inputs to evaluate the individuals
potential for growth within the organization.
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Potential definitions remember you are not
rating performance.
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Talent mix performance and potential grid
Potential
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Is this an ideal combination?
Potential
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Or this one?
Potential
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Cover Ratios/Succession Planning
A cover ratio is an indication of how many people
would be able/ready to move into a key position
and when (timeframe)
Ratio Analysis 1.0 0.3
for every 10 jobs, there are 10 employees who
could perform this job
for every 10 jobs, there are 3 employees who
could perform this job
example
Immediate cover/succession
Developmental cover/succession
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F08-F09 People Calendar
BUDGET
BUDGETS SIGNED OFF
Fiscal Year
F08Q4 Jan, Feb, Mar
F09Q1 Apr, May, Jun
F09Q2 Jul, Aug, Sep
F09Q3 Oct, Nov, Dec
F09Q4 Jan, Feb, Mar
End Year Performance Reviews
Mid-Year Perf. Reviews
Goal Setting
1 on 1s
Goal Setting
1 on 1s
Development Discussions IDP
review IDP for budget setting
Strategic People Reviews
Strategic People Reviews
Development interviews (voluntary) and
psychometric assessments (when appropriate)
Training
SPR/ Talent Management and Understanding
Psychometrics / modular approach Continuous
support Coaching
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Conclusion

• At each level is important to have a right mix of
  talents, depending on the business stage and
  current strategy
• Talent is a combination of potential and
  performance
• Talent Management is a rigorous and planned
  process which needs to be managed and lived
  accordingly by all company managers
• Watch out the myths!