Lauren Killion, Sr. Consultant - OE Gretchen Lumsden, Sr. Mgr OD Michele Merkel, Sr. Mgr TM

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1 Lauren Killion, Sr. Consultant - OE Gretchen Lumsden, Sr. Mgr OD Michele Merkel, Sr. Mgr TM

2 Who We Are Largest home improvement retailer in the world #33 on U.S. Fortune 500 2,260 stores 300,000+ associates $79B in sales

3 Guiding Principles

4 War for Talent & Resources Shortage of qualified leaders and it s only getting worse Organizations have limited resources for development

5 Defining Potential Defining potential and differentiating talent is a core priority And many different frameworks exist

6 Measuring Potential Defining it is just the start What about measuring it?

7 Home Depot s Potential Definition Performs well in almost everything they take on Track record of outstanding leadership ability Comfort with a broader company perspective than job currently requires Quickly processes and grasps new concepts Aspires to advance at The Home Depot Capacity for growth through increased responsibilities, lateral movement or promotion Expected to significantly increase contributions Ability Learning Agility Aspiration/ Engagement Potential

8 Measuring Potential at The Home Depot 1 2 Utilize Talent Planning Process to identify Invest associates Objectively measure competencies for the next job (in a way that fits our culture)

9 The Necessity of Culture Fit Deliver Results Deliver Results Drive for Results Challenge the status quo Think Big Manage Vision & Purpose Engage in transparent & constructive conversations Forge internal collaborations Have Backbone; Disagree and Commit Earn Trust of Others Conflict Management Organizational Agility

10 A Home Depot Case Study We were seeing: Regional Vice President Position (RVP) Gaps in pipeline and succession plans Many champions for many different leaders Lack of consistent approach across divisions Larger emphasis on past performance instead of potential Structured Interview Guide was not creating enough agreement He should be the next RVP he s beat comps more than anyone! She should be the next RVP look at her record on turning around her business unit and developing her people He should be the next RVP he s ready to take the company to the next level

11 Creating a Seamless Process Goals: Build more confidence and agreement with the RVP pipeline Create a seamless process connecting the assessment results to development & succession planning Succession Management Development Assessment

12 Building the Insights Program Through needs analysis of the business case, institutional knowledge, and assessment theory we determined we needed to create an assessment that Clearly and consistently uncovered skill level in 7 competencies deemed important for potential in the RVP role Eased placement decisions and tailored development plans Fit our culture Data focused Field focused - with top field leaders support & involvement

13 Best Practice Design Principles Clearly define the purpose What competencies measure potential? What competencies will not be developed in role? Will it be used for selection, development, or both? Choose exercises that best measure those competencies and allow feedback What activities best elicit those behaviors? Role Play? Work sample? Test? How can these activites be leveraged for appropriate developmental feedback? Ensure validity Can it be defended legally? Is it consistently measuring the right behaviors across participants and across activities? Is it relating to the position from a content perspective and is it correctly predicting potential? Create tools and a process leaders believe in What activities will our leaders have confidence in?

14 Activities Role Play: Coaching Interview Role Play: Conference Call In Basket: Decision Challenges Analysis Exercise: SWOT

15 Insights in Practice To meet the goals and strategy, the assessment : looked just like the job was assessed by field leaders who saw all participants had scores on each of the most critical competencies for potential has a process that allowed collection of tailored individualized feedback directly from field leaders provided a consensus meeting with all top leaders to calibrate on the talent

16 Summary of Insights Process Pre-Event Insights Event Post Event Assessor training for field leaders focusing on calibration of expectations Participant Orientation Participants & assessors complete Insights day-long activities Assessor calibration meeting to discuss scores and feedback Scores and feedback on participants are provided to top leaders (VPs and Ps) Participants receive feedback through phone call with Talent Managers to go through report Ongoing development continues with development plan

17 Ensuring a Good Experience Communication Critical Path Participants Managers / HR Partners Communication of Logistics Dress code Directions Pre-Work Communication stressed development opportunity instead of assessment

18 Development was a Core Outcome Individualized phone calls to deliver feedback Individualized report providing information on each competency Development Plan (Blueprint) Integration 70/20/10 principle On-going coaching with Participant s Manager and Sr. Talent Manager

19 Lessons Learned More communication to participants faster Collect feedback during ratings and not just in calibration Fully build out a long-term development plan and focus

20 Questions?

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