Going Behind the Curtain: Integrated Talent Management at PepsiCo

Transcription

1 Going Behind the Curtain: Integrated Talent Management at PepsiCo Allan H. Church, Ph.D. PepsiCo Inc. SVP Global Talent Assessment & Development Association for Talent Development Southern Connecticut Chapter October 17 th, 2016

2 Agenda Context Setting Talent Management and High-Potential Identification Key Research Insights & Trends PepsiCo Application Talent Management Strategy LeAD Program Architecture Sample Feedback & Usage Building and Sustaining an Integrated Process Enhancing the Effectiveness of the Process Understanding the Impact of Transparency Final Thoughts 2

3 Leadership Development as the Integrator Talent Management & Succession Planning Organization Development & Change Focus on the Few (e.g., Identifying HiPos, Session C, BoD) Focus on the Many (e.g., Culture, Structure, Performance) Leadership Development 3

4 Setting the Context: War for Talent & Resources Talent has been a scarce resource for over a decade and it s getting worse Organizations have limited resources for development Differentiation and talent identification is key for successful TM 4

5 Research on Assessment Practices ASSESSMENT IS HOT! Research on 100 Top Development Companies Reports that 70% Use Assessments Church & Rotolo (2013) Church, Rotolo, Ginther & Levine (2015) 5

6 Research on Assessment Tools & Methods Assessment Tools Currently In Use (Average of 4 Together) High Potentials (75%) Senior Executives (90%) Church & Rotolo (2013) 6

7 Research on Maturity of High-Potential Programs Majority of top companies are far from fully integrated, and those 53% are who Level are 3 more standardized advanced are today. more Many likely in to early use stages assessments are considering assessments, while 87% of those in later stages already use them What is the Maturity Level of Your High-Potential Program/Process? (5) Business Integrated: Strategy and processes fully integrated w/ strong Exec engagement; Long-term planning standard; Business impact measured; HP talent visible and shared; high development (4) Transparent: HP development implemented consistently; Higher Exec engagement and longer-term planning; Full disclosure regarding status; HP transition support moderate 87% currently use assessments 7% are in development (3) Standardized: Consistently implemented and integrated w/ some processes; Moderate Exec engagement but mostly short-term; transparency status inconsistent (2) Inconsistent: Criteria exists but varies/determined largely by mgrs. Limited exec engagement, planning & integration w/ strategy (1) Reactive: Ad-hoc processes w/out clear criteria; No targeted development 43% currently use assessments 57% are in development Church, Rotolo, Ginther & Levine (2015) 7

8 Fundamental Question Good Question: What is a high-potential? Better Question: Potential for What? 8

9 Agenda Context Setting Talent Management and High-Potential Identification Key Research Insights and Frameworks PepsiCo Application Talent Management Strategy LeAD Program Architecture Sample Feedback & Usage Building and Sustaining an Integrated Process Enhancing the Effectiveness of the Process Understanding the Impact of Transparency Final Thoughts 9

10 Business Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient, nutritious and affordable options in nearly every country around the world. Applications Global Beverages Global Snacks Global Nutrition Performance Brands Scale People More than $63 billion revenue 22 billion-dollar brands >200 countries & territories More than 250,000 employees 10

11 Performance: Mix of Net Revenue (2015 Data) Beverage Food Outside US US 11

12 Integrated Talent Management Architecture 4 Growth & Succession Attract, Select, Onboard 1 Business Strategy 3 Perform & Reward Talent Strategy Learn & Develop 2 Right People in the Right Place at the Right Time doing the Right Work the Right Way 12

13 Standard Paradigm 13

14 One Size (Leader) Does Not Fit All Segmentation by Levels, Roles & Functions 2 Senior Level 1 C- Suite 5 Types of Roles Developmental Critical Transition Pivotal Crucible 3 Mid- Level Entry Level 14

15 One Size (Hipo) Is Unrealistic Segmentation by Leadership Potential and Destination Based on Silzer & Church (2009) Industrial-Organizational Psychology 15

16 Building an Integrated Talent System Linking role segmentation with the Leadership Potential BluePrint (a) targeted assessments (b) customized development plans (c) actionable talent decisions (d) accelerated and enhanced bench strength 16

17 The PepsiCo Approach Designed to facilitate the identification, assessment, and development of global high-potential talent to build leadership bench Multi-level design Multi-trait multi-method Theoretically grounded Empirically validated Integrated w/ TM systems C-suite engagement Internally designed & led 17

18 Assessment & Development Pyramid Consistent Framework with Increasing Levels of Focus General Approach Identify and Differentiate Confirm and Develop Verify and Stretch Shape and Refine One-on-One : Behavioral interview, Executive 360, Hogan assessment, Custom strategy simulation Assessment Center: In-person simulations, behavioral interview, psychometrics (Hogan, Ravens), and career aspirations Web-Based: Virtual simulation, psychometric assessments (Hogan, Ravens), and career aspirations Web-Based: Psychometric assessments (OPQ, Ravens), biodata, P-O fit, career aspirations, performance criteria 18

19 Assessment & Development Process The SLDC and LeAD programs add consistency and rigor to the assessment, development, and tracking of key global talent using a basic consulting model Assess individuals against criteria Provide feedback to individuals Identify specific development actions Implement specific development actions Monitor progress indicators Coaching Stretch Assignment Online Learning Executive MBA Programs PepsiCo University Programs 19

20 Assessment & Development Roadmap 360/ Hogan Feedback Session Raven s Online Critical Thinking Development Phase Orientation Business Case Simulation Individual LeAD Feedback Session 20

21 Sample Report Sample BluePrint Dimension Cognitive Skills Personality Dispositions Leadership Behaviors Experiences & Learnings Functional Capability Summary of Capability Assessment Method Test Self-Report 360 Feedback Interview Simulation Weighted Average Strategic Thinking Foundational Problem Solving Emotional Intelligence Growth Mindset Growth Learning Agility Ambition & Drive Inspiring Followers Career Developing Talent Financial Savviness Customer Focus Significant Strength At Standard Levels Significant Opportunity Not Measured via this Method Sample data only 21

22 Key Integration Points with Talent Management 22

23 Talent Review and Sample Insights Talent Call Prior to Program LeAD Results: Some Potential LeAD Results: Moderate Potential LeAD Results: High Potential High-Potential % 67% 73% 62% 33% 27% Key Contributor Example: 40 People are Assessed through LeAD 25 HPs and 15 KCs Results show 20% Some, 53% Moderate and 27% High Potential Insights and Implications: 8 high-potentials confirmed ensure talent / career plans are robust 3 high-potentials failed the assessment need to understand why 5 key-contributors scored some thus are confirmed remain in core programs 3 key-contributors blew the doors off need to review/reconsider why not HPs Sample data only 23

24 Agenda Context Setting Talent Management and High-Potential Identification Key Research Insights and Frameworks PepsiCo Application Talent Management Strategy LeAD Program Architecture Sample Feedback & Usage Building and Sustaining an Integrated Process Enhancing the Effectiveness of the Process Understanding the Impact of Transparency Final Thoughts 24

25 Enhancing the Effectiveness of the Process Impact Do Assessment & Development Programs Matter? What Has Been the Impact of the Assessment and Development Process on the Business Performance of Participants Within Months of Assessment? No noticeable impact (2%) Too soon to tell (19%) Minor (9%) Senior Leader Development Center SLDC Launched in 2013 Over 120 senior leaders have started the process in successive waves 50 have completed the 18 month process Dramatic (5%) Significant (28%) Moderate (37%) All participants received: Custom MTMM report Individual feedback sessions with I-O Psychologists Development plan support and coaching Follow-up feedback survey (DCI) Follow-up participant program survey Church & Rotolo (2013) Church, Rotolo, Ginther & Levine (2015) 25

26 Enhancing the Effectiveness of the Process (cont.) Impact What Types of Results Have We Seen? Program Feedback Outcomes Over Time I put in significant effort toward completing the assessments My reaction following the feedback session was positive (negative/neutral/positive) Feedback I received gave me insights into my leadership capabilities Working sessions with COE to create my development plan were effective I have taken action toward closing my development gaps 77% (92%) 74% (96%) 52% (96%) 44% (88%) 63% (100%) Exiting the Organization (Lower Ratings on 11/19) Higher Potential & Higher Performance Ratings (3 Yrs Average) My involvement in the program shows that the organization is invested in my growth as a leader 67% (92%) Strongly Agree ( 5 ) Only XX% Agree & Strongly Agree (top Box 4 & 5 ) xx% 26

27 Understanding the Impact of Transparency Transparency Should We Tell People if They re a HP or Not? What is Your Formal Policy About Sharing HiPo Status with Employees? LeAD Potential Leader Potential Leader launched to ~3,900 associates in 11 languages in 2014 Approximately 85% of those invited accepted 97% completed the assessments (n=3,335) All participants received a feedback report with 2 strengths/ 2 opportunities & their individual level of LIFT 4 levels of LIFT: some, moderate, great and very great extent to which associates are similar to more senior leaders in experiences and capabilities as indicated by assessments. Church & Rotolo (2013) Church, Rotolo, Ginther & Levine (2015) 27

28 Understanding the Impact of Transparency (cont.) Transparency What Happened When We Did Tell People? Program Satisfaction by LIFT (% Satisfied/ Very Satisfied) 65% 69% 72% 71% 79% 68% 62% 63% Employee Attitudes 100% Perceived Impact of Program 80% Some Moderate Great Very Great 60% 40% Program Satisfaction 20% 0% Some Moderate Great Very Great Will improve my overall effectiveness Shows org is invested in my growth and development 28

29 Understanding the Impact of Transparency (cont.) Transparency What Happened When We Did Tell People? % Who Felt the Report was Like Me by LIFT 49% 44% 59% 64% 53% average Some Moderate Great Very Great Overall Satisfaction by Reports Feeling Like Me 100% Report Was Like Me 80% 60% 61% 84% 87% 40% 20% 33% 31% 0% Not at all like me Not like me Neutral Like me Just like me 29

30 Understanding the Impact of Transparency (cont.) Transparency What Happened When We Did Tell People? Exceeded Objectives Short-Term Ratings Performance 1 Year Later Long-Term Rating Met Key Objectives Some Moderate Great Very Great 30

31 Agenda Context Setting Talent Management and High-Potential Identification Key Research Insights and Frameworks PepsiCo Application Talent Management Strategy LeAD Program Architecture Sample Feedback & Usage Building and Sustaining an Integrated Process Enhancing the Effectiveness of the Process Understanding the Impact of Transparency Final Thoughts 31

32 Final Thoughts Talent Management is About Making Decisions on People HR Strategy linked to the Business Strategy Aligned set of frameworks (Hipo, Leadership, Functional) Assessment, differentiation, and feedback creates energy Data can be used for used and misused (content and validly matter) Decision making systems have consequences (purpose, tools, targets) 32