Today s Sponsor: Today s Session: Managing the Middle: Identifying New Leaders Within Your Organization. Aug. 24, 2010

Transcription

1 Today s Session: Today s Sponsor: Managing the Middle: Identifying New Leaders Within Your Organization Aug. 24, 2010

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4 Today s Speaker: Claire Schooley Senior Analyst, Forrester Research Advises clients on strategy, technology, elearning, and human capital management & development 25 years experience in education, management & consulting Previous positions at UC Berkeley, KQED-TV and Alameda County Office of Education

5 Managing The Middle: Identifying New Leaders Within Your Organization Claire Schooley, Senior Analyst August 24, Forrester Research, Inc. Reproduction Prohibited

6 Preparing your organization s talent for advancement is essential to your survival. 6

7 Agenda The state of the workforce in many organizations Why companies look internally to develop and promote Need for strategic talent management Role of succession planning in talent development Other methods of talent development Recommendations 7

8 The stratification of the workforce is damaging to future growth The top 10% are the rock stars. Aggressive leaders in the organization Receive good compensation, bonuses, and extra perks for their work Get access to extra resources The middle 80% often feel disenfranchised. Employees are working harder and asked to produce more. Job fit is not right but employees fear leaving in a employee-depressed economy; also fear losing their jobs. No clear indication that the economy will improve significantly in the near future; this fact depresses employees The bottom 10% are the forgotten ones. Little resources spent on making them productive. Just waiting for the pink slip 8

9 Employers recognize workforce challenges Burnout more responsibilities, lean staffing Productivity master more skills; current skills become outdated quickly Job flight retaining highly skilled employees if economy turns around Multi-generational workforce three generations in the workforce with different views of work Engagement motivating employees 9

10 We must put more emphasis on developing, supporting, and growing internal talent. 10

11 Audience Poll Who is the succession plan for in your company? Executive level All people with managerial positions including executives All salaried employees All company employees We do not have succession planning 11

12 Agenda The state of the workforce in many organizations Why companies look internally to develop and promote Need for strategic talent management Role of succession planning in talent development Other methods of talent development Recommendations 12

13 Reasons effective organizations develop internal talent Positive factors about internal development and promotion Company benefits from its investment in employee training. Less costly since company saves on recruiting and some training costs. Increased retention because employees see advancement opportunities. Less risk of employee not fitting into the company culture. Flexibility of newly promoted employee to assist replacement. 13

14 Companies with strong track record for internal promotions FedEx Intel History of promoting from within Employee encouraged to seek advancement and broaden understanding of the company Encourage relocation and about 10% of employee do so Invest heavily in employee development Johnson & Johnson Grow people by moving them around Between 70% and 90% of promotions go to existing employees Enterprise Rent-A-Car Promotions based on merit rather than seniority 14 Advancement is up to employee

15 Companies have to hire too Factors that drive outside hiring Outside perspective needed Add depth to company s capabilities Skills needed can t be met internally Desire for a shift in company direction 15

16 Agenda The state of the workforce in many organizations Why companies look internally to develop and promote Need for strategic talent management Role of succession planning in talent development Other methods of talent development Recommendations 16

17 If you promote from within, you need a plan Recruiting Demand-driven recruitment fills talent gaps strategically. Learning Learning is directly linked to employee effectiveness and organizational success. Performance Performance management drives learning and rewards. Compensation Compensation links employee accomplishments to business results. 17

18 The four pillars of strategic talent management 18 Source: The April 26, 2010, The Four Pillars Of Talent Management Forrester report

19 Pillar 1 Recruitment: Fill talent gaps strategically Typically used for reactive replacements and requisitions Best practices: Combine with enterprise talent and succession planning for forward-looking competitive advantage Link to learning for effective onboarding and retention 1 Requisition management Sourcing Applicant tracking Interview management Onboarding Workforce planning 19

20 Pillar 2 Learning: Link employee effectiveness to organizational success Often used for routine skills training Best practices: Link to career paths for growth and retention Make learning contextual for job relevance Align learning to organizational goals and strategies 2 Training administration Online learning delivery Learning reports Course catalog Learning content management Individual learning plans Compliance Skills and competencies 20

21 Pillar 3 Performance: Drive learning and variable rewards Traditionally limited to annual salary review process Best practices: Emphasize objective, measurable goals Tie performance to variable rewards, with higher frequency (e.g., quarterly) Drive career and development plans 3 Goal management Performance appraisals Multirater appraisals (360) Succession planning Career planning 21

22 Pillar 4 Compensation: Link employee accomplishments to business results Incentives typically limited to execs and commissioned sales reps in the past Best practices: Pay-for-performance for the entire workforce Align variable pay to organization, group and team performance goals Use recognition to support long-term retention strategies 4 Pay for performance Salary administration Market pricing Commission plans Pay equity analysis Stock programs Recognition and rewards 22

23 The four pillars of strategic talent management 23 Source: The April 26, 2010, The Four Pillars Of Talent Management Forrester report

24 Agenda The state of the workforce in many organizations Why companies look internally to develop and promote Need for strategic talent management Role of succession planning in talent development Other methods of talent development Recommendations 24

25 Succession planning technology provides insight into talent readiness Provide career opportunities across populations Minimize the risk of talent loss Eliminate the recurring manual cost of succession planning Increase the "bench strength" of the organization 25

26 Succession planning helps put the right people in line for the right positions Tie succession planning to the organization's long-term goals Determine who will be included in succession planning. Assess employee skills, competencies, and experiences. Understand career path desires of employees. Provide training to fill identified skill gaps. 26

27 A Succession Org Chart Reveals Talent Gaps And Manages Succession Plans Source: Cornerstone OnDemand 27

28 Internal recruiting requires profile information Source: Cornerstone OnDemand 28

29 Visualize talent in a nine-box matrix 29

30 Career Center shows career opportunities Source: Cornerstone OnDemand 30

31 Audience Poll Do you have a succession planning application in place in your company? Yes, the succession planning technology is implemented Yes, we have bought an application and are just beginning implementation process We are seriously considering succession technology and are talking to vendors We are thinking about it but have to develop the business case first No, we have no plans right now 31

32 Agenda The state of the workforce in many organizations Why companies look internally to develop and promote Need for strategic talent management Role of succession planning in talent development Other methods of talent development Recommendations 32

33 Establish a mentoring program 33 Source: The August 6, 2010, Drive Employee Talent Development Through Business Mentoring Programs Forrester report

34 What else employers do to retain talent Flexible work arrangements Appropriate and up-to-date technology Engaging work A collaborative work environment Investment in training and career growth Good pay Performance-based incentives 34

35 35

36 Empowered employees are HEROes (highly empowered and resourceful operatives) HEROes are middle management people who are taking technology into their own hands and creating solutions to problems HEROes exist in many of our companies Black & Decker Best Buy 36 Source: Flickr (

37 Classifying information workers into four types Disenfranchised Employees neither empowered nor resourceful. Rogue Employees resourceful but not empowered. Locked-Down Employees empowered but not resourceful HERO Employees both empowered and resourceful Source: North American Technographics Empowerment Online Survey, Q (US) 37

38 Classifying information workers into four types (Cont.) 38 Source: The June 18, 2010, The HERO Index: Finding Empowered Employees Forrester report

39 Agenda The state of the workforce in many organizations Why companies look internally to develop and promote Need for strategic talent management Role of succession planning in talent development Other methods of talent development Recommendations 39

40 Recommendations Turn first to your present employees for internal advancement Implement a talent management program with up-to-date employee profiles including skills and competencies Provide career development opportunities with career paths Working toward succession plans for all salaried employees. Empower middle management in ways that improve employee knowledge, customer service, work flows, etc. 40

41 Questions? Claire Schooley Cornerstone OnDemand Training Industry, Inc Forrester Research, Inc. Reproduction Prohibited

42 Upcoming Webinars: September & October Webinars: Virtual Facilitation Developing Global Leaders Educational Marketing Moving Training Online Learning Transformation at Maersk More Info/Register at: Webinar materials archived at:

43 Thank You! On behalf of Training Industry, Inc., thanks to: Today s Speaker: Claire Schooley, Forrester Research Today s Sponsor: Cornerstone All of you for attending Questions or Comments? Please contact Tim Sosbe: tsosbe@trainingindustry.com