Aligning Talent to Business Strategy

Transcription

1 Mobile: Aligning Talent to Business Strategy Martin Lanik, PhD South Africa April 2017

2 What s the biggest mistake managers make? A. Promoting my best friend B. Promoting people like me C. Thinking I know my talent D. Promoting best technical expert

3 I Know My Talent 60% of new managers fail within the first year (Ashkenas, 2015) Confident people are more likely to make mistakes (Smalarz & Wells, 2014)

4 Agenda 1. Importance of talent analytics. 2. Four-step talent management tied to strategy. 3. How to measure readiness and potential.

5 Importance of Talent Analytics

6 There is an adequate pool of ready successor candidates for key C-suite positions. 25% of executives and board members agree The Institute of Executive Development and Rock Center for Corporate Governance at Stanford University: 2014 Report on Senior Executive Succession Planning and Talent Development.

7 The Institute of Executive Development and Rock Center for Corporate Governance at Stanford University: 2014 Report on Senior Executive Succession Planning and Talent Development.

8 At the higher end, what s the annual development spending per leader?

9 What s the annual development spending per high-potential?

10 Your High-Potential Program

11 Your High-Potential Program 12% Drop out before finishing $85,392

12 Your High-Potential Program 12% Drop out before finishing $85,392 40% Promoted but fail $284,640

13 Your High-Potential Program 12% Drop out before finishing $85,392 40% Promoted but fail $284,640 33% Actively seeking other employment $234,828 Center for Creative Leadership, 2010 Harvard Business Review, 2010

14 Your High-Potential Program 12% Drop out before finishing $85,392 40% Promoted but fail $284,640 33% Actively seeking other employment $234,828 85% Won t become successful leaders $604,860

15 At The End Only 15% Can Potentially Become Successful Leaders 12% Drop out before finishing $85,392 40% Promoted but fail $284,640 33% Actively seeking other employment $234,828 85% Won t become successful executives $604,860

16 At The End Only 15% Can Potentially Become Successful Leaders 12% Drop out before finishing $85,392 40% Promoted but fail $284,640 33% Actively seeking other employment $234,828 85% Won t become successful executives $604,860 The $7,116 investment just increased to $47,440

17 Do you believe that smoking causes cancer?

18 Do you believe that bulletproof vests prevent death?

19 Do you believe that assessments predict job success?

20 Effect Size Statistical measure of practical significance The higher the number, the higher the impact

21 Effect Size Lung Cancer 30% 54% 6% 10% Genetics Diet Polution Smoking

22 Effect Size Smoking lung cancer r = 0.54 Bulletproof vest staying alive r = 0.58 Simulation assessment job success r = 0.53 Ferguson, 2009 Schmidt & Hunter, 1998

23 How You Select Right People AMA Enterprises, 2012 Corporate Leadership Council Schmidt & Hunter, 1998 Performance appraisals Frequency Manager nominations Accuracy Assessments

24 Oops Wrong People? 12% Drop out before finishing $85,392 40% Promoted but fail $284,640 33% Actively seeking other employment $234,828 85% Won t become successful executives $604,860 36% We are not high potentials! Center for Creative Leadership, 2010

25 No Basis for Observations We only see performance in current role Making predictions of the future is hard Even experts can t perform better than dart throwing chimps (Tetlock, 2005)

26 Quality of Talent Decisions = Quality of Data Used to Make the Decision

27 4-Step Talent Management Process Tied to Business Strategy

28 What Are the Business Goals? Who is ready now to achieve those goals? Less than 25% of managers think their development is critical for achieving business goals (Bersin, 2015)

29 Senior Leader What s the Business Goal? Establish a strategic direction Launch a startup or build new products/services Refocus the organization on new markets or core business Better differentiate products/services from competitors Strengthen the brand/reputation and increase customer loyalty Increase performance, retention, and engagement of employees Increase profitability through enhanced efficiency Build strategic alliances with suppliers, vendors, or business partners Mid-Level Leader Implement organizational strategy and align it with existing operations Build a culture of innovation and continuous improvement Combine or restructure business units Enhance customer value proposition by improving products/services Increase customer satisfaction by improving customer service Increase retention and engagement of employees Improve efficiency of operations Build a high-performance culture Manager Level Align the team with organizational strategy Boost innovation on the team Implement new systems and processes Enhance customer value proposition by improving products/services Increase customer satisfaction by improving customer service Increase retention and engagement of team members Turnaround team performance by creating accountability Build a high-performing team

30 Different Skills for Different Goals Increase Customer Satisfaction Focus on Customers Create Buy-In Eliminate Barriers to Change Develop Capable Teams Mentor & Coach

31 Different Skills for Different Goals Improve Efficiency Implement Strategy Plan and Organize Work Create Urgency Analyze Information Think Through Solutions Make Good Decisions

32 Traditional Talent Management Calibrate/Train Managers Collect Managers Ratings Discuss Ratings and Populate 9-box Facilitate Talent Reviews Create Talent Pools & Develop High- Potentials Achieve Business Goals

33 4-Step Talent Management Identify Strategic Direction Assessment Program Facilitate Talent Reviews Create Talent Pools & Develop Employees

34 The Missing Piece: Assessing Readiness for Business Goals Ready Now Current Skills Learning Agility Motivation Ease of Development Ready in 6 Months Ready in 12 Months Build new products/services Refocus on core business Increase customer satisfaction Enhance efficiency of operations Build strategic alliances Not Ready

35 Development Retention Low High Low Create Talent Pools Based on Needs Focus Investment Ready now Increased visibility Access to executives Freedom/flexibility Ready in 6 months Promotion/rewards Stretch assignments Executive coaching Ready in 12 months Leadership training Mentoring Action/peer learning Not ready at this time Development plans

36 Measuring Readiness and Potential

37 2017 Pinsight All rights reserved.

38 Example

39 Example

40 Example

41 Example

42 Different Simulations For Different Levels Set vision and strategy Senior Executive Implement strategy and translate into operational reality Oversee individual contributors Executive President Chief Mid-Level Leader Vice President Director Functional Manager General Manager Frontline Manager Frontline Manager Supervisor Team Leader Project Manager

43 How It Works Schedule simulation Complete pre-work Simulation experience Receive results Online scheduling Realistic business scenario 3-hour immersive simulation Get results within 24 hours after the simulation!

44 Group Analytics - Readiness

45 Group Analytics 9-Box Grid

46 Group Analytics Training Needs

47 Individual Report - SWOT

48 Individual Report Development Suggestions

49 Where does Pinsight fit in the talent management process? What happens after the Pinsight simulation? Common Questions How do leaders respond to Pinsight? Do they like it? We have no formal succession process will this be too much?

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51 Mobile: Aligning Talent to Business Strategy Martin Lanik, PhD