Perspectives on Talent Development

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Perspectives on Talent Development
Human Resources Network Meeting

• Warsaw
• April 29 - 30, 2004
• Presentation by Sabine Goesch and Erik Slingerland

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CONTEXT

• Common Questions
• How do our people compare with the competition?
• Does our talent pipeline match our succession
  requirements?
• What are the strengths of our top executives -
  what are areas for their improvement?
• Are there any overarching issues amongst our top
  50 we are not aware of?
• How can we retain, motivate and further develop
  our top leaders?
• Is our structure adequate - and who are the top
  people we can build on?

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CONTEXT

• EZI Perspectives Based On
• Review of Talent Management Research
• Interviews with major international companies in
  the US, Europe and Asia - EZI Global Benchmarking
  Survey on Talent Management 2004
• Discussions with leading academics
• plus your experience!

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OVERALL MESSAGES

• 1. Talent Management has now become one to the
  key strategic issues facing CEOs of global
  corporations
• 2. Companies are not making as much progress as
  they could
• 3. There are four underlying factors that are
  causing this problem

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1. TALENT MANAGEMENT HAS BECOME ONE OF THE KEY
STRATEGIC ISSUES FACING CEOs OF GLOBAL
CORPORATIONS

• All groups we interviewed in the Benchmarking
  Survey identified this as a key issue
• Recent surveys show that Talent Management is
  moving up on the agenda of US CEOs
• Wide-ranging belief that better Talent Management
  delivers substantial financial benefits to
  companies
• A further belief that better Talent Management is
  required to meet the requirements of the emerging
  leadership generation

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1. TALENT MANAGEMENT HAS BECOME ONE OF THE KEY
STRATEGIC ISSUES FACING CEOs OF GLOBAL
CORPORATIONS

• All groups we interviewed in the Benchmarking
  Survey identified this as a key issue
• Selection of participating companies (to date)

• Asia
• Toyota
• Panasonic
• Denso

• Europe
• Bertelsmann
• BMW
• Allianz
• Daimler-Chrysler
• BP
• Rio Tinto
• GSK
• Nokia
• Microsoft
• Deutsche Post WN
• UBS

• US
• PepsiCo
• GE Capital
• GSK
• Sara Lee
• Colgate-Palmolive
• IBM

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1. TALENT MANAGEMENT HAS BECOME ONE OF THE KEY
STRATEGIC ISSUES FACING CEOs OF GLOBAL
CORPORATIONS

• Recent surveys show that Talent Management is
  moving up on the agenda of CEOs
• Also Look Closer - Managing todays talent to
  create tomorrows leaders Towers Perrin, UK,
  2003
• Leading the Way - Hewitt Associates
• Integrated and Integrative Talent Management -
  The Conference Board

Top Management Issues Facing CEOs
2003 versus
2008 - Customer retention - Customer retention -
Reducing costs - Developing and retaining
potential leaders - Engaging employees in -
Improving product innovation companys
vision/goals commercialisation - Improving
product innovation - Top management succession
commercialisation - Managing
mergers/acquisitions/ - Developing retaining
alliances potential leaders
The Conference Board The CEO challenge 2003 -
Top Marketplace Management Issues
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1. TALENT MANAGEMENT HAS BECOME ONE OF THE KEY
STRATEGIC ISSUES FACING CEOs OF GLOBAL
CORPORATIONS

• Wide-ranging belief that better Talent Management
  delivers substantial financial benefits to
  companies
• Companies where CEOs are (actively) involved in
  leadership process delivered a (3 year) total
  return to shareholders (TRS) of 22 versus a TRS
  of -4 where they werent involved.
• - Hewitt survey of leading companies

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1. TALENT MANAGEMENT HAS BECOME ONE OF THE KEY
STRATEGIC ISSUES FACING CEOs OF GLOBAL
CORPORATIONS

• Emerging Demographics
• What is most important to your job satisfaction?
• 1. Candid Feedback
• 2. Opportunities to develop and learn
• 3. Compensation

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2. COMPANIES ARE NOT MAKING AS MUCH PROGRESS
AS THEY COULD

• Several Global corporations (e.g., GE, IBM,
  PepsiCo) have been systematically addressing this
  issue for over 10 years
• The recent Conference Board Survey indicates that
  many American companies have only been addressing
  this issue in the last three years
• Those that are moving ahead seem to be addressing
  the issue with a five year plus perspective
• We believe companies should be more aggressive
  than this in part because of the enormous
  financial implications

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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• I. Many of the current generation of CEOs lack
  the experience, competence, or confidence to
  provide effective leadership
• II. Too much effort spent on reinventing the
  wheel rather than borrowing from best practice
• III. Lack of disciplined implementation of the
  three things that make a real difference
• IV. A confusing array of influences that
  undermine confidence about the practical benefits
  of staying on course

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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• I. Lack of Experience
• I am the Worlds best paid HR executive Jac
  k Welch
• I am convinced that what really makes GE such a
  success as an conglomerate was their unique
  ability to get value from the way they managed
  their people Chris Bartlett (Harvard
  Business School)

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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• I. Lack of Experience (contd)

PERCENTAGE OF EXECUTIVES AGREEING WITH THE
STATEMENT
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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• II. Avoid reinventing the wheel
• It is much better to start implementing a simple
  process with discipline than design a complex
  model
• Home grown competency models are a waste of time
  and effort
• Get an early perspective on whether the
  leadership team has the right make up to support
  this effort

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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• II. Avoid reinventing the wheel (contd)
• Implement a simple process with discipline

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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• II. Avoid reinventing the wheel (contd)
• Home grown competency models waste time and
  effort
• Assessments Nine core competencies account for
  more than 90 of senior management performance

• Collaboration
• People Development
• Team Leadership
• Change Leadership
• Customer Focus

• Strategic Orientation
• Functional Competence

Thought Leadership
People Organisation Leadership
Business Leadership

• Results Orientation
• Market Knowledge

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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• III. Disciplined implementation
• Three things that really make a difference
• I. A common view of what good looks like
• II. The process being driven at the business
  leadership level
• III. The mechanism used to measure impact at
  the grass roots

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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• IV. Factors that undermine confidence
• I. The excess of tools that add to complexity
  without having impact
• II. Tendency for many of advisors to over
  complicate their part of the message
• III. The fact that the benefits can seem too long
  term in an era of Quarterly reporting and
  short-term CEO tenure

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3. THERE ARE FOUR UNDERLYING FACTORS THAT ARE
CAUSING THIS PROBLEM

• IV. Excess of Tools that Add to Complexity

Leadership/
Professional
High Potential
Performance
Feedback/
Workforce
Recruitment
Retention
Development
Development
Management
Measurement
Planning
Culture
College
Specific efforts
Professional
Stretch and
Competency
Exit interviews
Forecasting of
Corporate Values
Recruitment
development
short-
profiles
talent needs
systems
term/special
and demand
assignments
Experienced
Total rewards
Assessment
High potential
Performance
Regular
Talent skills
Flexible
hires
centres
development
management
employee
development
workplace
systems
surveys
On-boarding
Learning and
Executive
Reward/
Balanced
Diversity
training
Coaching
Recognition
Scorecard
TM
Programs
programs
Cross-functional
Internal
and
Communications
international
opportunities
- Integrated and Integrative Talent Management
The Conference Board
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TOOLS THAT ADD TO COMPLEXITY
EXAMPLE OF 360 SURVEYS
Vast quantities of inaccurate data organized
incomprehensively

• 65 competencies
• 15 respondents

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OUR EXPERIENCE WITH 360 SURVEYS
People are too complicated to be run through a
standard questionnaire It is better to include
multi level inputs You need to focus referees
on what they are qualified to comment
on Prioritise messages to a few most important An
outsider is the best person to give honest
feedback
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Your Experience - Key Questions

• What role does Talent Management play in your
  organization? In Central and Eastern Europe?
• To what extent is leadership development a make
  or break issue in your region?
• What future trends and challenges do you see for
  your company in the area of Talent Management in
  Central and Eastern Europe?

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Your Experience - Key Questions

• Are your local leadership teams really giving it
  their commitment?
• What are the elements of best practice in Talent
  Management that work best in Central and Eastern
  Europe?
• What components of Talent Management do you use
  in your region? Which tools are effective?
• Do you have a model for assessing and developing
  executives that is used in your region? Did you
  have to adapt it to your local market needs?
• Have you got a disciplined leadership review
  process implemented within your regional
  businesses? How is this aligned with global
  processes?