11/06/2012 Driving Business Execution through Integrated Talent Management Steven Hunt, Ph.D. Principal Director, Business Execution Practices E-mail: shunt@successfactors.com ‹#› SuccessFactors Proprietary and Confidential © 2011 SuccessFactors, Inc. All rights reserved. What’s changed in 20 years of Human Resources? ‹#› 1 11/06/2012 Human resources and the weight loss industry share a lot in common Which are diet books? Which are books about HR? ‹#› Its not about knowing what to do, its about doing what we already know Maximizing workforce performance requires: 1. Building commitment among leadership toward the importance of effective talent management 2. Providing guidance on what the organization should do differently from what it is doing today 3. Giving people tools that make it easy to follow our recommendations ‹#› 2 11/06/2012 Unlocking the mysteries of integrated talent management & business execution ‹#› What makes a business successful? 6 ‹#› 3 11/06/2012 1. 2. 3. Strategy: Figuring out what needs to be done Assets: Securing resources needed to make it possible Execution: Getting people to do it 7 ‹#› Do you have the capability to execute? ‹#› 4 11/06/2012 On scale of 1 to 5 (5 is high), are you confident your company could: Significantly change its strategic direction in 9 months or less? Agree on who the top 20% performing employees are, and then explain this to the other 80% in a way that doesn’t make them feel that they should be pursuing opportunities elsewhere? Determine the ROI you receive from investing in employees’ salary, bonus, and development? Effectively sustain the company’s current level of performance over the next 3 years? Increase the size of its workforce to meet projected business growth demands over the next 3 years? Ensure no one is doing things that create inappropriate levels of legal or financial risk for the organization? ‹#› BizX Drivers 1. Alignment 2. Productivity Are people focusing on the things that matter for delivering our strategy? Are people doing what we asked them to do? 3. Efficiency Are we optimizing our investment in people? 5. Scalability Do we have processes to ensure a steady supply of the talent needed to execute our strategies? 4. Sustainability Are we at risk of losing key performers? Can we maintain current performance levels? 6. Governance (Security & Compliance) Is anyone doing things that are creating significant liabilities for our business? ‹#› 5 11/06/2012 How do you increase Business Execution Capability? 11 ‹#› How do great leaders execute their business strategies? They simply “will it to happen” Famous Business Strategy Guru 12 ‹#› 6 11/06/2012 What is “integrated talent management”? Right People Right Way Staffing , Promotions & Workforce Planning Performance Management, 360 & Compensation Who you are How you act Skills Aptitudes Interests Competencies, Values, Behaviors Right Development Succession, Career Development, 360, Learning, & Collaboration Right Things Goal Management, Collaboration & Compensation What you achieve Goals Create learning through experience ‹#› 13 How talent management processes impact business execution drivers Right People Right Way Right Things Right Development Alignment Productivity Efficiency Sustainability Scalability Security/ Compliance ‹#› 7 11/06/2012 Business Execution Drivers provide the “missing link” between HR and business strategies Business Execution Drivers Business Strategies Talent Management Processes 15 ‹#› Driving business execution through better talent management Understand Strategy Link to BizX Drivers Leverage Talent Processes • What does the company need to achieve? • “Expand into APAC” • What demands does this place on the workforce? What do people need to do in the future that they are not doing now? • “Build APAC team aligned on Asian growth targets” – Align and Scale • How will we create these changes in the workforce? • “Staff the right people into the right jobs and focus them on the right things (i.e., recruiting, succession management, goal management)” 16 ‹#› 8 11/06/2012 Talent management process maturity Maintaining Talent Pipelines Influential Operational Maintaining Talent Pipelines Forecasting Future Talent Needs Calibrated Coordinated Effort Career Growth Building Talent Pools Impactful Meaningful Goals Business Driven Development Selecting HighPerformers Well Defined Aligned Goals Targeted Development Filling Open Positions Consistent TangibleGoals Individual development planning Right People Right Way Right Things Right Development ‹#› Talent management process maturity Target State Maintaining Influential Operational Maintaining Talent Pipelines Calibrated Coordinated Effort Career Growth Building Talent Pools Impactful Meaningful Goals Business Driven Development Selecting HighPerformers Well Defined Aligned Goals Targeted Development Filling Open Positions Consistent TangibleGoals Individual development planning Right People Right Way Right Things Right Development Talent Pipelines Current Forecasting Future StateTalent Needs ‹#› 9 11/06/2012 Where is the “integration” in integrated talent management? 19 ‹#› Achieving process maturity requires process integration Integrated Talent Pipelines Career Paths Business Driven Development Targeted Development/ Replacement Planning Individual Development Plans Silo’d Talent Forecasts Building Talent Pools Selecting High Performers Filling Open Positions Silo’d ‹#› 10 11/06/2012 We have the tools & knowledge to drive Business Execution. But we need to use them correctly. 21 ‹#› The workforce increasingly looks like this ‹#› 11 11/06/2012 ‹#› Everyday, they use apps like this ‹#› 12 11/06/2012 ‹#› But HR systems give them apps that look like this ‹#› 13 11/06/2012 Does this look engaging? ‹#› How about this? ‹#› 14 11/06/2012 We need HR technology that does not look or act like “HR technology” ‹#› Readily available through tools people use every day ‹#› 15 11/06/2012 Data that changes how leaders make business decisions ‹#› Technology, expertise, and workforce demands are changing the shape of HR 32 ‹#› 16 11/06/2012 An opportunity to create something so amazing people will think it was built by aliens. 33 ‹#› Thank You. I hope we can continue the conversation. For more information and a talent process maturity assessment please request a copy of the white paper “Driving Business Execution through integrated talent management” www.successfactors.com ‹#› 17 11/06/2012 What business execution looks like: some real world examples 35 ‹#› Following examples are from customers like these, but are not necessarily these customers! ‹#› 18 11/06/2012 Alignment: focusing people on the right things Situation: Fortune 500 global manufacturer on the brink of bankruptcy due to economic downturn Challenge: How to focus employees on what matters most for company survival and renewed growth Solution: Deployed goal management to over 30,000 employees in multiple countries in less than 4 months – Every employee required to set clear, verifiable goals tied to the company’s turn-around strategy – Visibility across the company on what people are responsible for achieving – Clear direction and accountability across all levels and departments ‹#› Productivity: maximizing performance of people Situation: Technology hardware manufacturing company challenged to get products to market faster at less cost Challenge: Time to market is dependent on performance of highly specialized and expensive engineers Solution: Implemented performance review process requiring leaders to identify, develop, and retain high performers while addressing expensive talent that was not fully contributing – Consistent methods used across the company for evaluating contributions of employees against clear standards – Monthly reports reviewed at executive level to track performance and retention of critical talent ‹#› 19 11/06/2012 Efficiency: maximizing the return on investment made on people Situation: Global communications company that grew by acquisition has too much capital tied up in human resources Challenge: Different divisions have multiple, redundant and often conflicting processes for hiring, pay, and promotions Solution: Deploy a single, integrated talent management system so all departments follow the same processes – Eliminated dozens of independent technology solutions – Reduce errors and re-work by going from multiple datasets to a single source of employee information – Reduced headcount costs through automation of manual talent processes ‹#› Sustainability: Maintaining consistent levels of performance over time Situation: National electrical company was facing loss of critical skilled talent due to aging and retirement Challenge: Replacement talent could only be developed through extensive on the job experience Solution: Implemented workforce planning & analytics along with succession and development processes to rapidly build talent for key roles – Forecasted the specific nature of talent shortages 3, 5 and 10 years into the future (what jobs, how many vacancies) – Mapped out job experiences required to backfill these positions – Implemented highly focused, development and job rotation programs to maximize new employee development ‹#› 20 11/06/2012 Scalability: acquiring and developing people to support growing business demands Situation: Manufacturing company with a strong customer service culture experiencing massive growth across countries Challenge: Struggling to expand into new markets without losing the unique customer focused culture that made them successful Solution: Deployed integrated performance management and development process to enforce and build customer service standards in emerging divisions – Communicate what “customer service” means using well-defined, behaviorally descriptive language and rating scales – Measure all employees based on what they achieve and how they achieve it – Reward, recognize and hold people accountable for displaying customer service behaviors that align with company’s core culture ‹#› Governance/Risk Management Situation: Retailer with regional operations in hundreds of locations around the globe Challenge: Ensuring that pay and promotion decisions reflect the company’s core values of fairness Solution: Deploy global performance management and succession process to support talent decisions – Highly transparent and consistent methods for determining pay and promotion decisions – Ability to track whether manager decisions about pay and promotion align with company values and expectations ‹#› 21