Talent Strategy. Building Competitive Advantage with Talent
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1 Talent Strategy Building Competitive Advantage with Talent Stacia Sherman Garr Vice President, TM & HR Research Bersin by Deloitte, Deloitte Consulting LLP
2 Agenda for Our Time Today Copyright 2015 Deloitte Development LLC. All rights reserved.
3 What Should a Strategy Enable? 1. Clarity 2. Alignment 3. Prioritization Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April Copyright 2015 Deloitte Development LLC. All rights reserved.
4 Examining the Current State of Talent Strategies 3 Talent Strategy: Building Competitive Advantage with Talent Copyright 2015 Deloitte Development LLC. All rights reserved.
5 Why Focus on Talent Management Now? 1. Skills pipeline dry or leaky 2. Talent management is integrated what s next? 3. Need for simplification of work and processes Source: Building Competitive Advantage with a Talent Strategy, Bersin by Deloitte / Stacia Sherman Garr, April Talent Strategy: Building Competitive Advantage with Talent 4 Copyright 2015 Deloitte Development LLC. All rights reserved.
6 Bersin s Research on Integrated Talent Management Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April Copyright 2015 Deloitte Development LLC. All rights reserved.
7 What is a Talent Strategy? Talent management is a business strategy and must be fully integrated within all the employee related processes of the organization. 1 A talent strategy will help you understand the skills, experience and capabilities your organization needs to deliver its strategic objectives and business plans. 2 Talent management is the science of using strategic human resource planning to improve business value and to make it possible for companies and organisations to reach their goals. 3 Sources:
8 What is a Talent Strategy? 1 Talent management is a business strategy and must be fully integrated within all the employee related processes of the organization. 1 2 A talent strategy will help you understand the skills, experience and capabilities your organization needs to deliver its strategic objectives and business plans. 2 3 Talent management is the science of using strategic human resource planning to improve business value and to make it possible for companies and organisations to reach their goals. 3 Sources:
9 What is a Talent Strategy? 1 Talent management is a business strategy and must be fully integrated within all the employee related processes of the organization. 1 2 A talent strategy will help you understand the skills, experience and capabilities your organization needs to deliver its strategic objectives and business plans. 2 3 Talent management is the science of using strategic human resource planning to improve business value and to make it possible for companies and organisations to reach their goals. 3 A talent strategy is a series of interlocking decisions related to key talent that enable the organization to most effectively execute its business strategy. Importantly, those decisions provide a framework for determining the talent activities the organization will and will not engage in. 4 Sources: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
10 The Problem With Many Strategies is they are not strategies at all 9 Talent Strategy: Building Competitive Advantage with Talent
11 For Example I want the right apple at the right price at the right time. 10 Talent Strategy: Building Competitive Advantage with Talent
12 Focus First on Priorities Vs. Vs. Vs. Source: Building Competitive Advantage with a Talent Strategy, Bersin by Deloitte / Stacia Sherman Garr, April Talent Strategy: Building Competitive Advantage with Talent
13 Then Create a Strategy and Strategic Plan with Interlocking Components Strategy A Strategy B Strategy C Source: Building Competitive Advantage with a Talent Strategy, Bersin by Deloitte / Stacia Sherman Garr, April Talent Strategy: Building Competitive Advantage with Talent 12
14 Take the Same Approach with Talent Management Use the Talent Strategy to Guide the Strategic Talent Plan Example: Fast-Growing Technology Company Our talent strategy is to seek out the most creative individuals in the world, regardless of their current background, and teach them our approach to designing our products. Source: Building Competitive Advantage with a Talent Strategy, Bersin by Deloitte / Stacia Sherman Garr, April Sample of Subset of Same Company s Talent Plan Talent acquisition Build relationships w/unconventional talent pools Develop cutting-edge assessment tools Involve hiring managers substantially D&I Foster employee resource groups targeted at employees with invisible diversity Drive importance of divergent viewpoints through communications, trainings Leadership Development Incorporate innovation, divergent thinking, and meritocracy as core leadership competencies
15 Only 12 Percent of Organizations Have a Clear Talent Strategy Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
16 Business Outcomes Organizations with a Talent Strategy Have Better Business Outcomes Organizations Most Effective at Business Outcomes Organizations Least Effective at Business Outcomes State of Talent Management Strategy Established strategy with some or many advanced processes No, new, or transitioning strategy No strategy, but advanced processes Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
17 Creating a Talent Strategy 16 Talent Strategy: Building Competitive Advantage with Talent
18 Why is Creating a Talent Strategy so Hard? Common Barriers: 1. Unclear owner or process 2. Insufficient stakeholder engagement 3. Inability to follow the talent strategy Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
19 At a High Level: The Process of Creating a Holistic Talent Approach 1 Business Strategy, Plan & Challenge Identification Business Strategy, Plan, & Challenges Business Units Business Business-Unit Units Strategies 2 3 Talent Need & Strategy Identification Talent Activity Design Strategic Workforce Planning, Including Critical Role Analysis, and Workforce & Marketplace Assessment Performance Mgmt. Strategy Learning Strategy Competency Mgmt. Strategy Leadership Development Strategy Talent Strategy & Strategic Talent Plan Succession Mgmt. Strategy Talent Acquisition Strategy Career Mgmt. Strategy Diversity & Inclusion Strategy Business-Unit Talent Plans Our new research focuses on step 1 and step 2 4 Systems & Process Design Process Redesign Process Integration Talent Systems Strategy Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
20 Communication is the Lynchpin Organizations that effectively broadly communicated the talent strategy were nearly six times more likely to score in the top percentile of business outcomes Key Activities: 1. Obtain buy-in early and often 2. Leverage all available channels 3. Build a brand Source: Building Competitive Advantage with a Talent Strategy, Bersin by Deloitte / Stacia Sherman Garr, April Talent Strategy: Building Competitive Advantage with Talent 19
21 Maintaining a Talent Strategy: Governance 20 Talent Strategy: Building Competitive Advantage with Talent
22 Using a Talent Advisory Council (TAC) to Create Senior Leader Stakeholders 1. Objective: Drive talent decisions, align talent strategy, and create talent champions 2. Participants: Senior leaders who are respected, influential, and open-minded 3. Governance: Led by business leader, not HR (though HR has 1-2 seats on the council) 4. Perception: Seen as prestigious and important 5. Frequency: Meets approximately every quarter Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
23 Incorporate Leaders at All Levels into the Talent Strategy Setting Process Organizations that involve business leaders at all levels are nearly six times more likely to score in the top quartile of business outcomes Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
24 Consider Creating Local Talent Advisory Councils Who: Local business and HR leaders What: Bringing TM strategy and plan to life locally When: Quarterly or as needed Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
25 HR s Role: Guide, Carry, Take the Photo 1. Create the infrastructure for ongoing talent strategy maintenance 2. Guide leaders conversations and focus 3. Measure and provide data 4. Provide behind-the-scenes help as necessary 5. Help business leaders be better talent champions Source: Building Competitive Advantage with Talent, Bersin by Deloitte / Stacia Sherman Garr, April 2015.
26 Case in Point: How Essilor Of America Created and Executed a New Talent Strategy Source: Business-Aligned Talent Management, Bersin by Deloitte / Stacia Sherman Garr, March Talent Strategy: Building Competitive Advantage with Talent 25
27 Overview of Essilor of America s Processes Step 1: EOA introduces basic talent management programs across the organization focused on training and performance management. Step 3: EOA establishes a talent management Leadership Council including business-unit SVPs, VPs, the CHRO, and the VP for Talent Management. Step 4: HR s talent management team and the Leadership Council create a diagnostic tool the Talent Management Map to see where business units stood on key TM components. Step 5: Second iteration of Talent Management Map Survey Q4, Step 2: The Vice President of Talent Management develops a Talent Management Framework for EOA. Source: Business-Aligned Talent Management, Bersin by Deloitte / Stacia Sherman Garr, March Talent Strategy: Building Competitive Advantage with Talent 26 Step 3, cont d: The Leadership Council uses employee engagement survey results and feedback from business units to build the case for talent management initiatives. Step 4, cont d: Rollout of the first Talent Management Map Survey and results. Step 5, cont d: Talent Management Map survey results tied to managers bonuses. Step 5, cont d: Talent Management Map survey completed by business unit leaders and direct reports.
28 Example: EOA s Talent Management Map Diagnostic Tool Talent Strategy Prioritizes, implements and follows up on talent management activities that support short- and long- term business needs (1-4) Meets with HR (at least annually) to discuss the progress of all talent management 1 initiatives Reviews each section of the Talent Management Model in order to identify and 2 prioritize needs Assesses high-level required changes in the organizational structure according to 3 key business needs (e.g., restructures, acquisitions) Mean Ratio % Assesses required changes to the functional competencies/job characteristics 3 4 according to key business needs 5 Prioritizes short- and long-term talent management initiatives 4 6 Integrates talent management into regular business meetings Allocates the necessary resources and budget to accomplish required talent management initiatives Reviews total compensation for the organization/department annually to ensure that it is competitive 4 3 Source: Business-Aligned Talent Management, Bersin by Deloitte / Stacia Sherman Garr, March Talent Strategy: Building Competitive Advantage with Talent 27
29 Example: EOA s Talent Management Map Dashboard Source: Business-Aligned Talent Management, Bersin by Deloitte / Stacia Sherman Garr, March Talent Strategy: Building Competitive Advantage with Talent 28
30 Outcomes According to EOA, Since the council s inception, talent management initiatives have become better prioritized, more aligned and streamlined 29 Talent Strategy: Building Competitive Advantage with Talent
31 Key Takeaways 30 Talent Strategy: Building Competitive Advantage with Talent
32 Questions & Additional Discussion Twitter: StaciaGarr 31 Talent Strategy: Building Competitive Advantage with Talent
33 About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Member of Deloitte Touche Tohmatsu Limited
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