Corporate Talent, Leadership, and HR. Predictions for Josh Bersin Principal and Founder Bersin by Deloitte/Deloitte Consulting LLP
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1 Corporate Talent, Leadership, and HR Predictions for 2013 Josh Bersin Principal and Founder Bersin by Deloitte/Deloitte Consulting LLP 1
2 Annual Membership Bookings Membership Reach and Range Bersin Membership Growth 43% CAGR over 5 Years More than 19 million employees globally covered by Bersin research 60% of Fortune 100 now Bersin members Bersin is the only research firm which covers all areas of HR, recruiting, talent management, HR technology, and leadership BersinInsights Platform delivers personalized experience to all users at all levels, from HR generalist to CHRO
3 Bersin by Deloitte Practices Learning & Development Talent Management Leadership Development Talent Acquisition Human Resources Organization & Governance L&D Benchmarking* Content Development Informal Learning Learning Culture* Learning Measurement Performance Consulting* Learning Programs Learning Technology Competency Management Performance Management Succession Management Talent Strategy Workforce Planning Career Management* Talent Management Systems Leadership Strategy Leadership Competencies Leadership Dev. Solutions Executive Development HIPO Development Leadership Development Evaluation Organization & Governance Employment Branding* Sourcing Prehire Assessment* Screening & Assessing Hiring & Onboarding Talent Acquisition Strategy Talent Acquisition Tools & Technology HR Organization & Governance HR Planning & Strategy* Engagement* Rewards & Recognition* Services & Programs HR & Talent Analytics* HR Tools & Technology* 3
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5 Bersin Predictions for 2013 Business Leadership, and Talent 1. Agility, globalization, and flattened organizations challenge HR 2. HR transformation creates a New Model for HR 3. Global leadership and bench strength as top priority 4. Globalization of talent practices become key to success 5. Capability development and continuous learning replace focus on informal learning 6. Specialization and career development take front stage 7. Talent mobility becomes a critical part of talent management HR Technology, Tools, and Markets 8. Talent management platforms commoditize as HRMS convergence takes hold 9. Analytics, Big Data, and Workforce Planning become focus areas 10. Mobile HR application support rises to critical need 11. Social tools and behaviors change HR practices HR Organization, Strategy, and Leadership 12. Engagement and Diversity become part of Talent Management 13. Structure of HR and role of Business Partner change 14. Re-skilling of HR takes on high priority 15. Bold, business driven CHROs take the lead 5
6 Agenda 2013: A Nexus for Change Emergence of Agile Management Global Leadership and Globally Local strategies Capability Development and New L&D models Talent Mobility and Career Development Engagement, Diversity,Recognition HR Technology Strategies Re-thinking HR and the role of the Bold CHRO 6
7 Today s Global Talent Challenges We have entered a global economy where talent and skills shortages challenge world economic and business growth around the world. - Klaus Schwab, Chairman, World Economic Forum Despite the high unemployment rates in many countries, more than 65% of global leaders cite talent and leadership shortages as their #1 business challenge. - Bersin & Associates TalentTrends, Fall
8 2013: A Nexus of Change nexus (Noun) A connection or series of connections linking two or more things. A connected group or series: "a nexus of ideas". 8
9 A Nexus of Talent Challenges Competition for Talent Social Sourcing & Recruiting 6 Business Speed and Scale Disruptive Competition Agile Management & Leadership Models A New Generation of HR Practices and New Type of HR Organization 1 Shift toward Emerging Markets 2 21 st Century Models of Leadership 5 New Technology Social Tools, Analytics Need for Improved HR skills and capabilities. Specialization Contingent Work New Job & Career Models 4 Borderless Workplace Team Model of Work 3 9
10 Agenda 2013: A Nexus for Change Emergence of Agile Management Global Leadership and Globally Local strategies Capability Development and New L&D models Talent Mobility and Career Development Engagement, Diversity,Recognition HR Technology Strategies Re-thinking HR and the role of the Bold CHRO 10
11 2013: Agile Model of Management W O R K F O R C E Young Connected Global Mobile New Models for Career Employee W O R K P L A C E Specialized Diverse Performance-Driven Team-Oriented New Models for Work Mentor Manager Partner Peer Customer Candidate T H E A G I L E E N T E R P R I S E Highly Connected Virtual Teams Collaboration to Meet Customer Needs Rapidly Using Data to Make Decisions New Models for Management 11
12 New Rules and Roles for HR Traditional Management Agile Management Focus on Control & Alignment Focus on Speed & Customers Creates: Execution, Order, Control Creates: Adaptability, Innovation, Speed HR s Job: Implement controls, HR s standards, Job: Implement and programs, systems, systems to drive alignment & strategies, execution which foster expertise, collaboration, and decision-making 12
13 The New HR Organization Where HR Transformation is Taking us in 2013 Business-Driven HR Personnel Department Administration Payroll Regulation Back Office Function Control Strategic HR Recruiting, L&D, Org Design Total Rewards Service Center, COE HR Business Partner Serve Staff Automate Integrated Talent Management Management, Succession, Leadership, Coaching, Integrated Processes Talent Management Enable Decisions and Management Differentiate & Segment Talent Plan for Future, Globally integrated decision-making Integrate d with the Business Drive the Business Strategy Plan for the Future Stay Tuned for New Research in April at IMPACT
14 Preparedness Top Talent Priorities for 2013 High Low Preparedness Importance Low High Importance Preparedness High High Preparedness Importance High Preparedness Importance Developing Job Profiles Internal Peer Networking Analyzing Job Requirements Handling Retirements Manager Interview Skills PM Process Diversity and Inclusion Upgrading HR / Talent Systems Manager Capabilities to Drive Employee Performance Retaining Key Employees Redefining HR Roles Managing Contingent Workforce Wellness Programs Employee Referral Programs Localizing HR Service Model Talent Mobility Across Regions Understanding Global Culture Meeting Multigenerational Needs External Peer Networking Global HR Service Model Low Preparedness Low Importance Low Low Importance Preparedness Blending Social into HR Programs Global Awareness and Fluency Global Business Acumen Sourcing Talent in Emerging Markets Low Preparedness High Importance High Low Preparedness Importance Importance 14
15 Preparedness Top Talent Priorities for 2013 High Low Preparedness Importance Low High Importance Preparedness High High Preparedness Importance High Preparedness Importance Developing Job Profiles Internal Peer Networking Analyzing Job Requirements Handling Retirements Manager Interview Skills PM Process Managing Contingent Workforce Employee Referral Programs Localizing HR Service Model Global HR Service Model Low Preparedness Low Importance Low Low Importance Preparedness Redefining HR Roles Talent Mobility Across Regions Wellness Programs Meeting Multigenerational Needs Understanding Global Culture Blending Social into HR Programs Global Awareness and Fluency External Peer Networking Diversity & Inclusion Deep Specialization Culture of Internal Mobility Global Business Acumen Sourcing Talent in Emerging Markets Manager Capabilities to Drive Employee Performance Forecasting Future Talent Needs Leveraging HR Metrics Workforce Planning Building a High Impact Learning Organization Promoting Career Development Identifying Talent Gaps Filling Talent Gaps Retaining Key Employees Leadership Bench Strength Manager Capabilities to Develop Employees 2013 Critical Focus Areas Low Preparedness High Importance High Low Preparedness Importance Importance 15
16 Education is Out of Step Educator and employer disconnect - 72% of Educators believe students are prepared for work - Only 42% of Employers believe students are prepared for work Lack of education causes entry level job vacancies - 45% of employers do not believe entry level college grads are ready for work Cost of education skyrocketing - 18% increase in last 3 years - 31% of students avoid education because of high cost, 48% in US - Only half of youth believe college improved their educational opportunities 16
17 Today s Workforce has Changed
18 Agenda 2013: A Nexus for Change Emergence of Agile Management Global Leadership and Globally Local strategies Capability Development and New L&D models Talent Mobility and Career Development Engagement, Diversity,Recognition HR Technology Strategies Re-thinking HR and the role of the Bold CHRO 18
19 21 st Century Leadership Models New Models: Creativity, not planning Quick decision-making Getting closer to customers Globalization, diversity Continuous change Manage unexpectedness Agility, not control Manufacturing High Tech Insurance Professional Services 19
20 Global Leadership Significant differences in the competencies that matter by country Impact: - Identify and develop for local needs - Develop leaders locally wherever possible - Build organizational awareness of different styles and needs 20
21 Global Leadership: Execution 21
22 Agile Leadership Agile leaders are experts (Steve Jobs) They are hands-on managers (Jeff Bezos) They serve as a coach They reside at all levels of the organization Leaders have global cultural awareness and must vary style by country Leaders inspire passion Competitive Edge Influence Strategic Direction Performance Drive Myth: Leadership is for the chosen few. Talent Development Reality: Leaders are at all levels. Inspirational Leadership 22
23 Deloitte Research-Based Leadership Solutions Stay Tuned for New Research in April at IMPACT 2013 Online psychometrics NEO-PR GMA-A Hogan DS Consequences Intro Run through the activities including start/finish times Opportunity to ask questions Assessment Day Assessment Structured holistic interview (biography + in-depth exploration of leadership skills and capabilities) Business Know-How exercise Debrief Run through the activities including start/finish times Opportunity to ask questions Individual Report Narrative of strengths and development areas Map of capabilities and potential against framework Outputs Aggregate Report Benchmarked view of pipeline against leadership framework Development hot spots to inform investments 23
24 Agenda 2013: A Nexus for Change Emergence of Agile Management Global Leadership and Globally Local strategies Capability Development and New L&D models Talent Mobility and Career Development Engagement, Diversity,Recognition HR Technology Strategies Re-thinking HR and the role of the Bold CHRO 24
25 Specialization: War for Skills Expertise drives competitive advantage Specialization improves quality and reduces cost Shelf-life of skills is shrinking Deep skills are developed through deliberate practice and reinforcement Lattice-like career development builds such skills Individuals with deep skills can easily leave to another position or contingent work The Experts Senior Specialists Top Management Senior Management Middle Management First Line Management Functional Specialists / Front-Line Employees Back Office, Operational, Contingent Employees Bersin Career Development Model 25
26 The Continuous Learning Model Expert Coaching Mentoring Continuous Learning Career Curriculum Communities of Practice Social Networking E-learning courses Job Aids Training Event Mobile Learning Novice Traditional Training Time Bersin by Deloitte 26
27 From T&D to Capability Development High-Impact Learning Organization Maturity Model Learning Culture, Expertise Sharing Level 4: Organizational Capability Source of Business Performance Capability & Learning Agility Executive Driven Cultural & Systemic Focus Administration, Tracking, Virtual classroom Integration with Talent Strategies Corporate LMS Enterprise Administration Level 3: Talent & Performance Improvement Source of Talent Development & Performance. Consulting Integrated with HR/TM Improving Alignment Process & Tech Focus Level 2: Training & Development Excellence Source of Designed Instruction Evolving Governance & Operations Improving L&D Core Processes Program Focused Level 1: Incidental Training Source of Ad-hoc Job Support Mentoring & Apprenticeship Emerging Need for Professional Training SME Focused 27
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29 Key L&D Strategies for 2013 More centralized strategy with federated implementation Build a corporate learning architecture, standardized technology platforms Invest in new L&D skills - Social, mobile, gaming - Expertise sharing - Learning culture - Audience analysis - Analytics 29
30 The Learning Architecture Connecting the Dots, Defining the Tool Box 30
31 Example Learning Architecture Major Technology Firm 31
32 Audience Analysis Now a critical dimension of high-impact Only 14% of L&D organizations tell us they have a comprehensive understanding of their audiences HILO organizations are 3X more likely to understand their audience well (Bersin HILO 2012) Audience analysis has become a critical success factor in capability development Analysis must be shared with central L&D team and local L&D consultants (ie. personas) Audience Analysis Personas Demographics Culture, Geography Language Knowledge, Skills Learning Styles Technology Acumen Available Attention Work Environment Available Networks Learning Culture 32
33 What Drives Real Learning? Great Corporate University Strong CLO and Alignment Excellent L&D Skills Use of rich media and social tools Excellent Training and E-Learning Innovative program design Have we created an organization which truly has a culture to learn? Does leadership reinforce the need to learn? Is expertise rewarded and valued? Are decisionmaking processes clear? Do people share information openly? Do people feel empowered to point out errors? Do we take the time to reflect? Do people move around and take risks? Do we listen to customers openly? 33
34 The High Impact Learning Culture Top 10 Practices Practice Category Relative Impact on Business Outcomes 1 Leaders are open to bad news. Empowering Employees Very High 2 Asking questions is encouraged. Empowering Employees Very High 3 Decision-making processes are clearly defined throughout the company. Empowering Employees Very High 4 Employees are frequently given tasks of projects beyond their current knowledge or skills level in order to stretch them departmentally. Formalizing Learning as Process Very High 5 Employees in my organization have influence over which job tasks are assigned to them. Empowering Employees Very High 6 The organization values and rewards employees who learn new knowledge and skills. Demonstrating Learning s Value High 7 The organization values mistakes and failures as learning opportunities, and provides structured opportunities for reflection. Encouraging Reflection High 8 The organization believes that learning new knowledge and skills is a valuable use of time. Demonstrating Learning s Value High 9 Employees generally believe the learning and/or developmental opportunities offered by the organization to be of high value. Demonstrating Learning s Value High 10 Employees in my organization take active responsibility for their own personal development. Demonstrating Learning s Value High 34
35 Agenda 2013: A Nexus for Change Emergence of Agile Management Global Leadership and Globally Local strategies Capability Development and New L&D models Talent Mobility and Career Development Engagement, Diversity,Recognition HR Technology Strategies Re-thinking HR and the role of the Bold CHRO 35
36 Need for Talent Mobility Top Management Senior Management SMEs (Consultants) Middle Management Senior Specialists First Line Management Functional Specialists / Front-Line Employees Back Office, Operational, Contingent Employees 36
37 Implementing Talent Mobility New Candidate Part Time Loan Job Intern SMEs (Consultants) Stretch Assignment Senior Specialists Exec Succession Top Management Senior Developmental Management Assignment Middle Management Lateral Promotion First Line Management Upward Functional Specialists Promotion / Front-Line Employees Lateral Assignment New Back Office, Operational, Contingent Employees Assignment New Leader Contract Hire External Assignment 37
38 Managing Talent Mobility Succession Management VALUES STRATEGIC INITIATIVES DESIRED BUSINESS OUTCOMES MISSION VISION ORGANIZATION NEEDS DESIRED COMPETENCIES (KNOWLEDGE, BEHAVIOR, SKILLS) OPEN POSITIONS & OPPORTUNITIES Individual Development INDIVIDUAL Plan (IDP) DEVELOPMENT PLAN (IDP) INDIVIDUAL NEEDS / DESIRES DEVELOPMENT NEEDS STRENGTHS ANNUAL GOALS MOBILITY Coaching Assessment CAREER ASPIRATIONS Organizational Planning / Restructuring Career Management Performance Management 38
39 % Improvement in business impact Career Development Models Relative Business Impact Functional Career Development Strategy An Open, Social Market for Career Manage your Own Career 39
40 Entire Organization Must Contribute to World-Class Career Management Employee Manager HR Company Identify Career Goals Maintain Profiles Demonstrate Values Socialize Interests Create Internal Network Share Expertise Define Job Profiles Provide Coaching Assess Potential Identify Development Opportunities Provide Candid Feedback Share Talent Openly Provides Tools & Resources Develop Career Models Facilitate Process Offer Career Coaching Career Development Training Integrate with Talent Mgmt Infrastructure Process, Technology, People Create Culture of Mobility Communicate Expectations Create Transparent Marketplace Stay Tuned for New Research in April at IMPACT
41 Agenda 2013: A Nexus for Change Emergence of Agile Management Global Leadership and Globally Local strategies Capability Development and New L&D models Talent Mobility and Career Development Engagement, Diversity,Recognition HR Technology Strategies Re-thinking HR and the role of the Bold CHRO 41
42 Has Created Challenges in Engagement Young, Diverse Workforce. In 2012, 32% of employees are planning on leaving their employers, vs. 19% two years ago Only 55% of employees believe their employer is a sound long term place to work vs. 65% over last three years. People under the age of 35 are twice as likely to be looking for new work as older workers. - Mercer October 2011, Towers Watson July 2012 By 2013, 47% of employees will be those born after US Census Bureau 42
43 Rethinking Diversity & Engagement Diversity and Inclusion is part of Talent Management Company Culture, Values, and Mission Diversity & Inclusion Work-Life Balance Recognition Career Development Engagement Performance 43
44 Global Oil Services Company Diversity Makes Business Sense 44
45 Why Recognition Works Maslow s Hierarchy of Leads Self Actualization (challenge, opportunity, learning, creativity) #1 reason people leave is because of lack of recognition at work Esteem (importance, recognition, respect) Love/Belonging (social, love, family, team) Career, Development Opportunities Modern Recognition Safety (economic and physical security) Compensation & Benefits Survival (food, water, sleep) 45
46 Recognition Drives Retention 31% Reduction in voluntary turnover! Source: Bersin & Associates Recognition Survey for HR Practitioners, January 2012, n =
47 Agenda 2013: A Nexus for Change Emergence of Agile Management Global Leadership and Globally Local strategies Capability Development and New L&D models Talent Mobility and Career Development Engagement, Diversity,Recognition HR Technology and BigData Re-thinking HR and the role of the Bold CHRO 47
48 M A R K E T G R O W T H - A D O P T I O N HR Evolution: Technologies Administration Payroll Regulation Back-Office Back Function Office on-premise ERP Personnel Payroll Systems Development Recruiting, L&D, Org Design Integrated Total Standalone Rewards SaaS Talent Service Talent Center, COE Management: Management HR Business Performance, Partner Learning, Recruiting, Compensation Management Strategic HR Serve the Workforce & Automate Enable Decisions & Management Succession Leadership & Coaching Integrated Processes & Systems Talent Management 1. Integrated Business- Driven HR 2. Cloud-Based 3. Systems of Engagement 4. Mobile Drive the Business Strategy Plan for the Future Differentiate & Segment Talent Plan for the Future Globalize the Workforce & HR Integrate with the Business Compliance T I M E 48
49 M A R K E T G R O W T H - A D O P T I O N Brief History of HR Systems Benefits & Compensation Hiring Recruiting E-Learning Performance Talent Integrated TM Solutions Social Work Social Everything Applicant Tracking Recruiting Sourcing Learning Management Integrated Talent Mgmt Performance Management Succession Management Competency Management Social Recognition Workforce Planning Integrated Recruiting Mobile and Tablet, HTML5 Analytics Segmentation Prediction Gamification Consumer User Interfaces Benefits Administration HRIS Compensation 2000 P R O G R E S S I O N O V E R T I M E
50 Top Issues to Consider 1. HRMS Replacement 2. Integrated Talent Platform 3. Find a System of Engagement 4. Modernize the LMS 5. Deploy Mobile Solutions 6. Implement an Analytics Strategy 50
51 Demand for Integration is Increasing: Are you willing to sacrifice features for an integrated HR solution? 51
52 Talent Systems Market Dynamics 22% Market Growth in Integrated Talent Systems (not payroll or core HRMS) We expect equivalent or greater in HRMS replacement market accelerating. Clear winners and clear losers emerging. 52
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54 Analytics and BigData in 2013 The Evolution of Business Analytics in other Functions The Waves of Business Analytics Finance & Logistics Integrated ERP and Financial Analytics Customer & Marketing Predictive Customer Behavior - CRM Talent & Leadership Predictive Talent Models HR Analytics Integrated Supply Chain Web Behavior Analytics Business-driven Talent analytics Logistics and Supply Chain analytics 1980s Financial and Budget Analytics Customer Analytics CRM (Data Warehouse) Customer Segmentation Shopping Basket Integrated Talent Management Workforce Planning Recruiting, Learning, Performance Measurement The Industrial Economy The Financial Economy The Customer Economy and Web The Talent Economy Steel, Oil, Railroads Conglomerates Financial Engineering Customer Segmentation Personalized Products Globalization, Demographics Skills and Leadership Shortages Early 1900s 1950s-60s 1970s-80s Today 54
55 This Science is Coming to HR Definition of Science : Systematic knowledge of the world gained through observation and experimentation. What is Not Science Making talent decisions on the basis of gut feel, beliefs, or philosophies. 55
56 Big Insurance Insurance Company A $33 billion insurance company has developed a behavioral assessment based on a set of beliefs held by the top executives Top sales people need college degrees from top rated schools, they should have good grades, and they should have experience selling high value products. But the data proves otherwise. 56
57 Data Showed Six Things Matter: Insurance Company The Belief System Was Wrong What Did NOT Matter Where they went to school What grades they had The quality of their references Within six months of implementing a new screening process revenues went up by $4 million 57
58 Talent Analytics Maturity Model Level 4: Predictive Analytics Development of predictive models, scenario planning Risk analysis and mitigation, integration with strategic planning Level 3: Strategic Analytics Segmentation, statistical analysis, development of people models ; Analysis of dimensions to understand cause and delivery of actionable solutions Level 2: Proactive Advanced Reporting Operational reporting for benchmarking and decision making Multi-dimensional analysis and dashboards Level 1: Reactive Operational Reporting Operational reporting for measurement of efficiency and compliance Data exploration and integration, Development of data dictionary <5% <10% >20% >60% 58
59 HR Organizations are Not Ready What percentage of HR organizations do you believe feel have strong skills in data analysis and interpretation? 6% Rate themselves High 56% - Poor Bersin & Associates High-Impact HR Organization 2011 and 2010, n=741 organizations 59
60 The Evolution of Data Skills and Competencies Large Retailer Solid Understanding of HR; I/O Psychology Degree; Employee Research Background; Qualitative Research Design & Analysis; HRIS; SPSS Strong Communication & Interpersonal Skills; Detail Oriented ; Project Management Business Acumen; HR, Finance, Economics Degree; Quantitative Research Design & Analysis Passion for Data & Analytics; Strong Technical skills Consulting & Presentation Skills; Analytical Curiosity; Problem Solving; Collaborative; Teamwork; Networking Skills Advanced Statistics & Social Research Acumen; Engineering Degree; Customer Research Background; Statistics & Data Mining Critical Thinking; Story Telling; Data Visualization; Ability to see data, and decipher insights Copyright 2012 Bersin & Associates. All rights reserved. Page 60
61 Agenda 2013: A Nexus for Change Emergence of Agile Management Global Leadership and Globally Local strategies Capability Development and New L&D models Talent Mobility and Career Development Engagement, Diversity,Recognition HR Technology Strategies Re-thinking HR and the role of the Bold CHRO Copyright 2012 Bersin & Associates. All rights reserved. Page 61
62 Exploration What kind of HR Team Are You? High Pioneers First-to-Market Leaders Innovative Operators Fast Followers Low Utilization High Reactors Defenders Low 62
63 From HR Generalist to HR Specialists How do we construct great buildings? We have many highly trained specialists: Carpenters, plumbers, electricians, sheet rock specialists, and architects Would you ever consider building a house with a team of all general contractors? or handymen? No. Then why do we staff our HR function with teams of HR generalists? 63
64 A New Model for HR Stay Tuned for New Research in April at IMPACT 2013 Business Unit A Business Unit B Business Unit C Highly skilled HR, L&D, recruiting, leadership, assessment experts who can function as local VPs of HR Strategic and Operational HR Services Strategy, Technology, Talent Management, Analytics 64
65 The Need to Develop HR Skills Nearly all the 200 CHRO s cite talent as the top priority of their CEO s agenda for HR. But it s the lack of talent in the HR function that the CHRO s said is the greatest obstacle to achieving the CEO s agenda for HR. The New HR Organization needs specialists, not generalists in a totally new structure & organization. 65
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67 Learn More Detailed discussion of these trends, with recent research and models to help you plan for 2013 Join our WhatWorks membership program for much more Join us at IMPACT 2013, April 22-25,
68 About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. 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. Copyright 2013 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
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