GOOD TALENT MANAGEMENT PRACTICES (GTMP) Semarang, 15 November 2010 BIMA HERMASTHO bima@freemind-consulting.com +62 8122862849 http://www.bsc-indonesia.com http://www.freemind-consulting.com Founder & owner PT. Freemind Management Consulting – Business Performance Improvement Consulting http://www.freemind-consulting.com Commissioner of PT RMT – an EPC & vendor of Exxon Mobil Oil Indonesia (EMOI Cepu) Founder Indonesian Balanced Scorecard School (http://www.bsc-indonesia.com) & Indonesian Six Sigma School (http://www.sixsigma-indonesian.com) - both are free online course in Balanced Scorecard and Six Sigma. Founder Indonesian Human Capital Institute, a free online HRM course (http://www.sdm-indonesia.net) Professional experience: various positions start from Management Trainee, HR Manager, TPM Training Manager, OD Senior Manager, Human Capital & OD Director in local and global companies (PT. Teleperformance Indonesia, PT. Multi Bintang Indonesia Tbk, PT. Coats Indonesia , PT. Polysindo Eka Perkasa – Asia Pacific Fibre, etc) Active & registered member: SHRM (American Society for HRM), ASTD (American Society for Training and Development), ASQ (American Society for Quality) & ISSP (International Six Sigma Professional Society) Doctorate degree in “Strategic HRM & Total Quality Management” – UNDIP Certified Balanced Scorecard Professional (CBSCP) Certified Lean Management Professional Certified Global Professional in HRM (GPHR) Certified Six Sigma Black Belt (CSSB) Certified Kaizen Professional (CKP) TPM (Total Productive Management) Trainer – Certified Process Kaizen Engineer (PKE) Certified Mediator on ADR (Alternative Dispute Resolution) AGENDA 1. Strategic Talent Management 2. Framework Talent Management 3. Identifying and Assessing High-Potential Talent (HIPO) 4. Top Management Meeting on Talent Review 5. Individual Development Plan 6. Leadership Development Program 7. Succession Planning & Retention “Take our 20 best people away and I can tell you that Microsoft would become an unimportant company” The Top Five Topics that HR provides CEOs • CareerBuilder.com 1. 2. 3. 4. 5. Training & Leadership Development Succession planning Performance Management System Human Capital Metrics PRP/Total Rewards Assessment Enables Strategic Talent Mgmt Meaning….. 1. Integrated HR processes focused on getting the right people in the right place at the right time. 2. Aligned with the business strategy for current and future success. 3. Driven by HR, led by the CEO, modeled by management, owned by the operating business/lines. Talent Segment Description Definition Outcome 1. Executive Leaders Officer and Director Level Positions Individuals selected as “ready now” or “ready 1824 months” for a specific executive position. Executive Succession Plan 2. High Potential High Potential Leaders Those with leadership potential and a proven performance track record of achieving results that can reach Director level within 3 years. High Potential Talent Plan 3. Critical Talent (People) Critical Talent at Leader Level Most critical and hardest-to-replace employees. Critical Talent Mitigating Plan 4. Critical Positions Critical Leadership Positions Most critical positions to maintain essential operational functions or drive business strategies. Critical Positions Mitigating Plan 5. Emerging Talent Early-in-Career Individual Contributors or Supervisors Those currently demonstrating high performance and the highest potential to advance one level or more within 3 years. Emerging Talent Plan Attributes Used to Identify High-Potential Employees Activities Used to Develop High-Potential Employees 80% 77% 68% 60% 40% 58% 39% 44% 48% 47% 42% 35% 62% 44% 37% 20% 0% Action learning Role shadowing Job rotations Public Sector Formal training using external vendor Multi-Sector Project assignments Formal in-house training Step 1Update Talent Data Step 2Identify Talent February March Step 3Talent Review March Step 4Manage Talent Full Year Execution & Monitoring Key Activities Plan the proce ss Com munica te Gain supp ort ID critic al positi ons Revie w the talent Devel op actio n plans Follo w up Linking the Talent Development Process to Business Identify Business Imperatives Dec Develop Strategic Plan Dec Assess Organizational Structural Capability & Key Positions Dec Data Preparation and Develop Performance-Potential Matrix Feb Review Talent and Identify Gap March Develop & Execute Leadership Development Plan Assess Organizational and Individual Performance Jan Position Review Retention Risk C r i t i c a l i t y Critical Critical High Medium Moderate Low High Medium Moderate Low Associate fully meets on all objectives, overachieves on key objectives, demonstrates the majority of values 3.2 and behaviors R ESULTS E XCEPTIONAL Associate fully meets on all objectives, overachieves on key objectives, out-spoken role model on values and behaviors. Novartis Case- Nine- Box Grid E XCEEDED E XPECTATIONS Associate fully meets on all objectives, overS UPERIOR R ESULTS , 3.1 achieves on key UNSATISFACTORY B EHAVIOUR objectives, does not demonstrate values and behaviorsAssociate consistently contributes at a superior level of performance on all job objectives, however, performance falls be low expectations on Novartis values/behaviours. F ULLY MET E XPECTATIONS O BJECTIVES G OOD R ESULTS , 2.1 Associate fully meets on UNSATISFACTORY B EH AVIOUR a majority of key job objectives, does not demonstrate values and Associate fully meets expectations behaviors on all job objectives, however, performance falls below expectations on Novartis values/behaviours. P ARTIALLY MET E XPECTATIONS U NSATISFACTORY P ERFORMER 1.1 S UPERIOR P ERFORMER 3.3 Associate consistently contributes at an exceptional level of Associate consistently contributes performance on all job objectives at a superior level of performance and the Novartis values/behaviors on all job objectives and also Recognized as a role model both demonstrates the Novartis Within their group and in a wider values/behaviours. population. Associate fully meets Few associates achieve this level on a majority of key of performance. Associate fully meets objectives, 2.2 demonstrates the majority of values and behaviors. S TRONG P ERFORMER Associate fully meets expectations on all job objectives and the Novartis v alues/behaviours. This is a positive and fully acceptable level of performance. 1.2 G OOD B EHAVIOUR , U NSATISFACTORY R ESULTS S UPERIOR B EHAVIOUR on 2.3a majority of key objectives, out-spoken role model on values and behaviors. Associate consistently demonstrates superior behavior and fully meets expectations on all job objectives. S UPERIOR B EHAVIOUR , 1.3 U NSATISFACTORY R ESULTS Associate does not Associate performance falls considerably short in relation to job objectives and the Novartis values/behaviours despite repeated explanations /coaching. Associate does not meet on a majority of key objectives, does not P ARTIALLY demonstrate values and behaviors MET E XPECTATIONS Associate fully meets expectations on Novartis values/behaviors, however, performance on job objectives falls below expectations. Associate does not LLY MET E XPECTATIONS meetF Uon a majority of key objectives, N OVARTIS V ALUES /B EHAVIOURS demonstrates the majority of values and behaviors. Associate consistently meet on a majority of demonstrates superior behaviour, key objectives, outhowever, performance on job spoken role model on objectives falls below values and behaviors. expectations. E XCEEDED E XPECTATIONS Talent Review Meeting I. PERFORMANCE POTENTIAL MATRIX CAREER PROFILE High Professional Already on top, with special competency High Potential 2 vertical steps within 5 years Promotable 1 vertical step within 2-4 years Lateral Potential Move horizontal/across functions within 2 years Effective Likely to remain in current role 3-5 years Planned Exit Retirement, poor health, continued underperformance. Too soon to tell EXCELLENT GOOD IMPROVEMENT REQUIRED TOO SOON TO TELL • Identify career paths for future career growth • Identify competencies and assess strengths and areas for development • Have employees create a career profile and identify development plans • Mentor and coach employees • Provide ongoing feedback • Discuss career goals with employees • Develop a promotion from within policy HIgh Potential Leadership Development Training Work Experience Coaching Career Development Leadership Workshops OJT Formal Mentoring Career Paths Orientation Job Rotation Informal Mentoring Career Planning Professional Development Internships Senior Leader Coaching Advanced College Degrees Special Assignments Networking Groups Senior Staff Meetings Special Projects Farm Teams Conferences and Workshops Team Projects Learning Communities Replacement Assignments Technical Skill Training Inservice Training/Leadership Lunches Leadership Pipeline Origin: • The Leadership pipeline was originally designed in General Electric as the framework for their succession management system. • Now used by 80 leading companies in the world to anchor all work on the human side of the enterprise. Leadership Pipeline The Power of the Model: • • • • • Distribute leadership work more effectively – ensuring that leaders are doing value adding work at the right level Raise the standard, define/measure Leadership & make it absolutely clear what it takes to succeed – enabling significant improvements in Performance Enable individuals to succeed: self-help, self-planning, selfassessment Create the architecture for integrated Leadership Development & Talent Management Give senior management transparency so that they can see all the way to the bottom & ensure executive validation & direction of all the work of a business. Assessment of Key Positions Development Monitoring and Review Identification of Key Talent Key Elements Generation of Development Plans Assessment of Key Talent Career Mgt & Succession Plan Reg. VP West Reg. VP. East Reg. VP Central Dir. HRD VP. Production VP of Finance Bagus Djoko Asep Bambang John Sembada Incumbents Ready Now Kurnia Emergency Replacement Monang p Alex g Ready Next 1 - 2 Yrs g Jono n Totok l Toni n Joseph g Tommy n Rica g Jusman n Joice n Jendro g Ready Future 2 + Yrs Maulanan Sarjuni Robby Wicak p Jay n Budi Sinaga Sukirman v Lilik l Andre p Jane Supriyanto Rising Stars Simamora Placement Issue t Agung Susanto Performance Issue LEGEND - copy and past symbol in box next to name l Critical Talent g High Potential (2+) n Promotable (1) p Exp. Professional v Too New (N) P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL Cell 9 – Highest Performance – Highest Potential P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL Is now performing with the best. Has the ability to take on major stretch assignments in new areas. Should be positioned to become a top leader in the future. Talent Management Plan Total Compensation Retention Engagement Exposure Assessment Coach Mentor Assignment Development Keep well ahead (25%) of market. Grant long-term incentives. Assign a member of top management to monitor satisfaction and engagement. Assign to key committees, teams, networks; special invitations to meetings; provide opportunities to represent MBI in community and industry forums. Arrange exposure to significant and relevant senior management/board members, Executive Development programs. Provide complete continuous assessment, evaluation and feedback alternatives. Make coaches available for key skill development. Assign a senior level mentor. Move aggressively through a series of targeted, challenging, diverse and broadening jobs every 24-36 months. Use challenging jobs to enhance current skills and develop others. Consider as candidate for MBI sponsored graduate or executive development programs. Cell 8 – Middle Performance – Highest Potential P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL Consistently meets expectations and has the ability to take on new and different challenges. Could be a senior leader in time. Talent Management Plan Total Compensation Retention Engagement Exposure Assessment Coach Mentor Assignment Development Keep ahead (10%) of market. Grant long-term incentives. Assign a member of top management to monitor satisfaction and engagement. Assign to key committees, teams, networks; special invitations to meetings; provide opportunities to represent MBI in community and industry forums. Arrange exposure to significant and relevant senior management. Provide complete continuous assessment, evaluation and feedback alternatives. Make coaches available for key skill development. Assign a senior level mentor. Move through a series of challenging and diverse jobs every 24 – 36 months. Use challenging jobs to enhance current skills and develop others. Consider as candidate for MBI sponsored graduate or executive development programs. Cell 7 – Highest Performance – Middle Potential Consistently performs with the best and can do more. P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL Talent Management Plan Total Compensation Keep well ahead (20%) of market. Enhance short-term incentives. Assign a senior manager to monitor satisfaction and treatment. Retention Hold supervisor accountable to retain. Assign to key committees, teams, networks; special invitations to Engagement meetings. Facilitate and support internal and external networking in field of Exposure specialization; senior management should meet and know. Assessment Provide learning agility and competency assessment. Mentor Assign as a performance mentor to others. Keep in current assignment and role as long as possible and look Assignment for additional assignments for potential development. Put into a learning agility enhancement program or consider as Development candidate for MBI sponsored graduate or executive development programs. Cell 6 – Lowest Performance – Highest Potential P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL May be new in organization, assignment or in a stretch developmental job or role. May not be in a good fit job. Should catch up in time. Has the long term potential to be among the best. Talent Management Total Compensation Keep at midpoint of market. Retention Assign a senior manager and HR professional to monitor satisfaction and treatment. Hold supervisor accountable for performance support. Engagement Exposure Assessment Mentor Coach Assignment Development Assign to key taskforces, study groups, networks; special invitations to meetings. Facilitate and support internal networking; senior management should meet and know. Provide complete continuous assessment, evaluation and feedback alternatives. Assign a senior level mentor. Provide coaches for functional and direct job skills. Monitor performance in current assignment. Look for a closer fit for the next assignment. Use diversity of jobs to build performance capabilities; monitor performance closely. Cell 5 – Middle Performance – Middle Potential P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL Always does a good job (meets expectations). Can fill multiple roles. Versatile. Dependable. Adaptable. Flexible. Utility player. Talent Management Plan Total Compensation Keep at market mid-point. Retention Hold supervisor accountable to monitor satisfaction. Assignment Use to fill in gaps and play multiple roles. Development Choose either a performance enhancement (move to cell 7) or potential enhancement path (move to cell 8). Cell 4 - Highest Performance – Lowest Potential P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL Consistently performs with the best. Knows the job and role extremely well. Plays a vital role in producing organizational results. Seasoned. Irreplaceable. Solid. Talent Management Plan Total Compensation Keep ahead (25%) of market. Use soft rewards and recognition. Grant long-term incentives. Retention Assign a senior manager to monitor satisfaction and treatment. Engagement Assign to key committees, team, networks; special invitations to meetings. Exposure Facilitate and support internal and external networking in field of specialization; represent MBI in industry related professional groups, benchmarking panels. Assessment Provide technical and functional skills assessment. Mentor Assign a as a functional / technical mentor to others. Coach Assign to teaching and coaching activities. Assignment Keep in current assignment and role as long as possible. Development Support honing functional / technical expertise. Cell 3 – Lowest Performance – Middle Potential P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL May be new in assignment or in a stretch developmental job or role. Might be misplaced. Should move up in performance in time. Has the potential to perform better. Talent Management Plan Total Compensation Target 5-10% below market. Assessment Provide continuous performance assessment, evaluation and feedback for alternatives. Assignment Monitor on current assignment until performance improves. Development Put on performance improvement plan, with specific functional feedback and coaching. Cell 2 – Middle Performance – Lowest Potential P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 POTENTIAL Performs up to standard (meets expectations). Limited upside outside current areas of expertise and fields of specialization. Talent Management Plan Total Compensation Keep at market. Retention Hold supervisor accountable for retention. Facilitate and support internal and external networking in field of specialization. Provide technical and functional skills assessment along with every third year general skills assessment and learning agility options. Assign a functional / technical mentor. Keep in current assignment and role as long as possible. Select either a performance improvement path (to cell 4) or a learning agility enhancement path (to cell 5). Exposure Assessment Mentor Assignment Development Cell 1 – Lowest Performance – Lowest Potential P E R F O R M A N C E 4 7 9 2 5 8 1 3 6 Consistently struggles to perform up to standard. Has trouble keeping up. Talent Management Plan Total Compensation Freeze pay. Hold incentives. Retention If not correctable, out-counsel. Set a time limit. Assignment Move into better fit assignment or outplace. Development Put on a performance improvement plan. POTENTIAL Thank you.