clc_line_leader_owned_talent_planning_and_accountability_gap_inc

CLC1ABSPK8 Leverage Soft and Hard Accountability to Improve Outcomes 101

Line Leader–Owned Talent Planning and AccountabilityGap Inc. OutletA decentralized talent management process that provides individual line leaders ownership over talent management priorities, resources, and accountability

Source: Gap Inc. Outlet; Corporate Leadership Council research.

Gap Inc. Outlet

Industry: Retail

Gap Inc. Revenue: US$15.8 Billion

Gap Inc. Employees: 154,000

Headquarters: San Francisco, Calif.

SituationWith declining HR budgets and a need for more decentralized and customized development offerings, Gap Inc. Outlet realizes the need to engage individual line leaders in identifying and delivering more cost-effective and relevant talent solutions. However, Gap Inc. Outlet’s HR vice president fi nds that line leaders require a higher level of ownership to improve talent outcomes.

ActionGap Inc. Outlet increases line leaders’ focus on improving talent outcomes by enabling leaders to control their own talent management resources and priorities and by instilling peer accountability.

Key Steps• Step #1: Provide Line Leader Ownership

of Talent Strategy and Resource Allocation.

• Step #2: Use Peer Accountability to Drive Talent Management Urgency.

• Step #3: Leverage Peer Collaboration to Improve Talent Outcomes.

ResultsDespite a 20% decline in talent management resources, an increased level of line leader ownership and execution of talent management activities has led to improved retention in “must keep” talent and a 14% increase in employee satisfaction scores.

CLC1ABSPK8 Creating Talent Champions (Volume II) 102

Increasing Individual Ownership for Talent Management

Decentralize Talent Management to the Line Many HR organizations are fi rmly in control of the talent strategy, accountability, and execution. Gap Inc. Outlet has developed a very different philosophy that decentralizes to the line all of these critical components, specifi cally creating a situation where:

• Business leaders own the strategy and the resources;

• Hard accountability is supplemented by a high degree of soft accountability, and;

• Execution is managed collaboratively.


Practice in Context

Overcoming Barriers to Line Leader EngagementGap Inc. Outlet engages line leaders by increasing individual ownership of talent

management strategy and resources and by using peer pressure and collaboration


Peer-Leader Accountability

Line Leader Role: Present leader-specifi c talent metrics to peer leaders and provide visibility into action plan to address low-scoring areas.

Leader TotalEmily

Curtis/ Finance

Maya Smith/

HR

Louise Holly/

Northeast

William Stackhouse/ Southeast

Jonathan Springford/ Northwest

Lucile Ahada/

Southwest

Work/Life Balance 75 73 74 76 71 65 82

Belief in Company 65 55 66 70 68 68 63

Customer Focus 71 69 76 66 72 78 68

Job Satisfaction 58 60 59 60 62 50 56

Respect 66 60 59 68 79 75 66

HR–Driven Accountability

HR Role: Hold line managers accountable for talent management outcomes (e.g., retention) through performance management process and incentives.

Line Leaders

Performance Review

Public Talent Scorecard

2

Line Leader Collaborative Execution

Line Leader Role: Collaborate with other line leaders on prioritizing talent management actions to address ongoing challenges.

HR–Driven Execution

HR Role: Mandate line manager execution on HR–created and prioritized talent management activities.

HR

Line Leaders

3

HR–Driven Talent Strategy

HR Role: Create talent strategy and resource plan and cascade to line.

Corporate HR Talent Plan

Line Leader–Owned Talent Strategy and Resource Planning

Line Leader Role: Decide own talent priorities and determine how to spend talent management budget.

1. Simplify—Identify methods to clarify new-hires’ expected deliverables within the fi rst six months of tenure.2. Stability-= Support career planning team to provide clear career path for Generation Y.3. Career Development-Focus on retaining must-keep talent4. Type Business Priorities Here

Talent Planning Tool

1

Barriers to Engaging Line Leaders in Talent Activities Gap Inc. Outlet’s Response

Line Leader Action Plan


Give Leaders Greater Control of Priorities

Control Is the Key to AccountabilityTo enable business leader ownership of talent management, Gap Inc. Outlet provides business leaders with control over their talent priorities and budgets regarding learning and development and recognition. This underlines a critical tenant Gap Inc. Outlet discovered: it is ineffective to hold leaders accountable for activities for which they feel they have little infl uence or control. This step is designed to provide senior leaders across the organization with an opportunity to exercise judgment about how to allocate talent management resources in their part of the business.

Focusing Leaders on the Right ActivitiesTo ensure leaders focus on the most relevant talent activities, Gap Inc. Outlet allows leaders to select their talent priorities from a fi xed set of categories derived from its Employee Opinion Survey. This spreadsheet tool walks leaders through key strategic questions they need to address, based on their function’s unique Employee Opinion Survey results.

Push Talent Strategy Deeper into the Organization In another critical departure from many other organizations, Gap Inc. Outlet focuses on driving talent ownership deeper into the organization by engaging senior leaders below the general manager level in identifying talent goals and prioritizing talent investments.



Build your specifi c functional people strategy (Tab 1):• What are your business priorities?• Where are the critical opportunities from your engagement survey feedback?• Identify your areas of opportunity.

Review the Learning and Development and Rewards and Recognition programs “available for purchase” (Tab 2):• What solutions will meet your needs?• What additional solutions do you need that might need to be outsourced?

Complete the priorities and resource template specifi c to your function (Tab 3):• Click in your EOS drivers—use the drop down to select.• You can use the Employee Planning Tool (fourth tab) to help defi ne who on your team you wish to provide specifi c training for.• Choose your L&D choices—template will calculate as you go.• Add additional “external” training that you wish to do.• Send completed template/workbook back by 21 January.

Step #1: Provide Line Leader Ownership of Talent Strategy and Resource Allocation

VP Finance Business Unit

Guide Leaders’ Talent Planning Toward High-Impact Activities

Gap Inc. Outlet’s talent planning tool provides leaders with a fi xed set of talent categories that match its employee opinion survey categories to ensure leader focus on relevant talent management activities.

Enable Leader-Led StrategiesGap Inc. Outlet decentralizes ownership of talent management priorities and

resources to engage individual line leaders within each business unit in talent activities

Gap Inc. Outlet’s Line Leader Talent Planning Tool

Illustrative Data

Engage Senior Leaders Below

the General Manager Level

While most organizations engage the seniormost business leader in business unit–level talent review and succession planning activities, Gap Inc. Outlet engages all senior leaders below the GM level (i.e., VPs and above) in identifying their personal talent objectives and prioritizing their own talent management resources.


Give Leaders Greater Budgetary Control

Control Is the Key to AccountabilityGap Inc. Outlet gives business leaders budgetary control over talent management topics that most impact individual employees, such as day-to-day work environment, talent retention strategies, and employee and manager development. Business leaders can use that budget to spend on the talent management activities they think are most critical to develop their people, based on their business environment.

Setting Up Guardrails Gap Inc. Outlet creates guardrails to guide leaders’ decision making by providing leaders with a menu of resources from which they can choose to allocate their budget. Business leaders can use external resources in addition to internal programs, if necessary. HR retains control over some talent resources, such as compliance, that are best administered centrally.


Build your specifi c functional people strategy (Tab 1):• What are your business priorities?• Where are the critical opportunities from your engagement survey feedback?• Identify your areas of opportunity.

Review the Learning and Development and Rewards and Recognition programs “available for purchase” (Tab 2):• What solutions will meet your needs?• What additional solutions do you need that might need to be outsourced?

Complete the priorities and resource template specifi c to your function (Tab 3):• Click in your EOS drivers—use the drop down to select.• You can use the Employee Planning Tool (fourth tab) to help defi ne who on your team you wish to provide specifi c training for.• Choose your L&D choices—template will calculate as you go.• Add additional “external” training that you wish to do.• Send completed template/workbook back by 21 January.

Step #1: Provide Line Leader Ownership of Talent Strategy and Resource Allocation (Continued)

Fund Leader Strategies with ResourcesGap Inc. Outlet provides individual line leaders control over the talent

management resources that impact engagement and retention of their employees

Gap Inc. Outlet’s Talent Planning Tool

Balancing Line Leader and HR Ownership of Talent Management Resources

Line leaders are provided ownership of areas that impact:• Day-to-day work environment; • Talent retention; and• Employee and manager development.

HR maintains ownership of:• Compliance resources and programs;• Core aspects of the employee value proposition

(e.g., compensation, medical benefi ts); and• Development, sourcing, and administration

of talent management solutions.

3:

Gap Inc. Outlet provides leaders ownership of their own talent management budget, which enables the following:

• More resource-effective consumption of talent management programs• More customized investments to retain and engage key talent• Forces leader understanding of talent and talent management needs

Line leaders can allocate their resources among a menu of center-led talent management programs in support of their individual priorities.VP Finance

Business Unit



Use Peers to Create Accountability

Quarterly Results Shared with Business and Functional LeadersInstead of having HR hold business leaders accountable for talent outcomes, Gap Inc. Outlet relies on peer pressure to ensure business leaders achieve their talent outcomes. Gap Inc. Outlet publishes quarterly Employee Opinion Survey results, turnover statistics, and progress made on individual talent action plan items, by each individual business leader’s name, to all business and functional leaders. In addition, there is a focused conversation at each quarterly talent meeting when leaders have to briefl y review key talent metrics and progress against their action items.


Accountability Through “Skin in the Game”

Step #2: Use Peer Accountability to Drive Talent Management Urgency

To ensure line leader focus on talent activities, Gap Inc. Outlet publishes individual talent management results…

Gap Inc. Outlet’s Published Employee Opinion Survey Results

Illustrative

…and drives urgency by presenting its talent management results

and plans to peer leaders

Leader TotalEmily

Curtis/ Finance

Maya Smith/

HR

Louise Holly/

Northeast

William Stackhouse/ Southeast

Jonathan Springford/ Northwest

Lucile Ahada/

Southwest

Work–Life Balance 75 73 74 76 71 65 82

Belief in Company 65 55 66 70 68 68 63

Customer Focus 71 69 76 66 72 78 68

Job Satisfaction 58 60 59 60 62 50 56

Respect 66 60 59 68 79 75 66

Objective: Create urgency around talent activities through peer visibility into leaders’ talent management performance.

When: Quarterly

Participants: All business and functional leaders within business unit

Information Presented to Line Leaders: • Individual line leader “Key Talent” metrics

and updates • Individual line leader employee engagement

pulse survey outcomes and updates • Individual line leader action plan updates

Business Leader Talent Review MeetingsEmployee Opinion Survey, Q4 2007

Line Leader Testimony: Beyond Compliance“I think the combination of being able to control my own HR resources and a real shared sense of accountability across the leadership team has brought a new level of urgency and focus on talent issues.”

Sonia Syngal Vice President, Outlet Production and Supply Chain Gap Inc. Outlet

Providing Full Visibility into Line Leader’s ResultsThe CEO, enterprise and division HR, division president (GM), the division leadership team, and each leadership team member’s entire functional team will see the leader’s individual results (up to 300 people per team).

At or Below the Bottom 40th Percentile

At or Above the Top 25th Percentile



Use Peers to Improve Talent Outcomes

Solutions Collaboration at the Quarterly Talent Planning MeetingGap Inc. Outlet does not use the quarterly talent planning meeting only to hold leaders accountable; it also serves as a forum for the individuals who see the results to collaborate on possible solutions. This situation allows Gap Inc. Outlet to do the following:

• Create a strong sense of team across the division’s leadership by identifying solutions together.

• Provide an opportunity for business leaders to share best practices.

• Allow business leaders to identify common challenge areas and collaborate on solutions for which they will hold each other accountable.

A Closer Look at the Collaboration ProcessThe collaboration process is both a bottom-up and top-down approach, with specifi c action items coming out of the Employee Opinion Survey scores and from HR and business leaders collaborating to develop a suggested action plan. Business leaders present the suggested action plan to their peers at the quarterly talent planning meeting and discuss whether the same challenge is manifest in other areas of the business or if a best practice exists to address it. If shared challenges exist, business leaders will identify the most appropriate business leader to own the action steps and may split responsibilities across leaders.

Progress Tracked CentrallyBusiness leaders’ peers have visibility into their progress through a centrally stored action planning document. This document lists business leaders, by name, and provides updates on their status. Accountability is further driven through quarterly reviews by the business unit’s general manager.


Gap Inc. Outlet’s Keys to Successful Leader Ownership of Talent Initiatives

Agenda Ownership: Leaders own the agenda for the talent action planning meetings to allow focus on the talent challenges and activities most relevant to their business.

Visibility into Progress: An action planning document is updated quarterly and stored centrally to provide leaders with full visibility into each other’s progress, which in turn drives urgency for taking action.

GM—Driven Accountability: Progress against planned activities is reviewed in a quarterly leadership team meeting led by the general manager of the business unit to instill urgency and execution.

Step #3: Leverage Peer Collaboration to Improve Talent Outcomes

Improving Talent Outcomes Through CollaborationGap Inc. Outlet provides leaders with ownership over identifi cation and execution of talent priorities to improve on their survey results

Gap Inc. Outlet Talent Planning Summary

Opportunity/Action Item Action Plan Expected

Delivery Status Owner

CompensationAnalyze individual pay and ensure it is equitable. March 2008 Will be completed by

3/31/08Emily Curtis/Maya Smith

Ensure store pay is aligned appropriately with job level and experience for every position. March 2008 Two weeks later, will be

completed by 4/14/08 HR

Career Opportunity

Create role clarity/review job descriptions and ensure roles are clearly delineated. May 2008 On track, will be

completed 5/9/08 Maya Smith

Review organizational structure and ensure best role alignment to new business priorities. April 2008 On track, will be

completed by 4/30/08

Jonathan Springford/Patrick Ofer

Training

Determine L&D strategy for 2008 (including external technical training) within L&D budget. February 2008 Final presentation:

2/29/08 Louise Holly/ Lucile Ahada

Create an onboarding plan for new line managers. June 2008 Next update: 3/31/08

Maya Smith/William

Stackhouse

GM Line Leaders

HRBP

VP

Business Unit Quarterly Line-Lead Talent Plan Meeting

Quarterly Talent Management Action Planning Meeting

Use Leader Collaboration to Improve Talent Outcomes

Gap Inc. Outlet mandates line leaders to collaborate on the identifi cation and execution of key talent action items in overcoming ongoing talent challenges.



Improved Ownership, Better Results

Improved Results Under a Tighter BudgetDespite a 20% decline in HR budget, Gap Inc. Outlet’s practice to improve line leader ownership and execution of talent management activities has helped it realize improvements on key talent and employee engagement metrics. Specifi cally, Gap Inc. Outlet has seen a 25% improvement in its key talent retention goal. In addition, employee satisfaction scores have increased 14% as a result of improved business leader ownership of talent management resources, strategy, and execution.


Results

Increased Talent Management EffectivenessDespite a signifi cant decrease in HR budget…

Gap Inc. Outlet’s Corporate HR Budget Reduction

…Gap Inc. Outlet outperforms key talent retention goal…

Gap Inc. Outlet’s 2007 Key Talent Retention Performance

…and demonstrates improved employee satisfaction

Employee Satisfaction

Score

2007 2008(Q2)

14%3.47

3.94

2006 Goal 2007 Goal Achieved

25%80%

100%

2006 2007

(~20%)Talent

Management Program Budget

Retention Goal

Putting Competition to Good Use“The key to leader engagement in talent management practices is quite simply accountability: ‘What gets measured, gets done.’ And what gets measured that has your name on it REALLY gets done! Executives are, by defi nition, competitive and driven to compete on the numbers. The more competitive you can make the game, the more they will pay attention.”

Eric SeversonVice President of HRGap Inc. Outlet

Average Improvement in Business Leader’s Employee Satisfaction Scores



Practice Q&A with Eric Severson, Vice President of HR

Commentary and Implementation Tips from Gap Inc. Outlet

1. In hindsight, what would you have done differently? What is the key to making this a successful practice? “I would have done this sooner. I think it’s a mistake to think that business leaders don’t understand the importance of investing

time and resources in people to drive business results. They do. They are just tired of clunky, time-consuming, one-size-fi ts-all talent management solutions that don’t solve the people problems they have now. The keys to making this practice successful are simplicity and relevance—easy, one-page tools that address burning issues, fast processes, and leveraging existing business meetings for people processes. If it’s fast, simple, and relevant—and they have to talk about it with their peers and their boss—they will do it.”

2. If you could only do one thing, what would it be (that is, what’s the most important aspect of this practice)? “Transparent measurement. Most leaders are where they are because they have a powerful drive to win. They have been trained

for their entire careers to focus on competing on the critical few business levers for which the business holds them accountable. Most businesses regularly publish individual leaders’ fi nancial results (sales, earnings, margin, etc.)—and that transparency is a signifi cant motivator and accountability tool. Why not people results? We fi nd that when people results are measured at the local level (not just the enterprise level), and leaders are competing against their peers, they invest more time and effort in their people. This is an example of where internal competition can be harnessed and put to good use.”

3. What was hardest about implementing this practice, and how did you deal with that obstacle? “The hardest part has been providing customized talent management solutions that fi t individual leaders’ needs. It’s true that

one-size-fi ts-all fi ts no one. However, one-size-fi ts-all is also generally cheaper and easier to implement for HR. Providing custom solutions required adopting an entirely new mind-set about what we do and how we do it as an HR team. Increasingly, we are focused less on things like having a uniform look and feel for programs, forcing best-in-class training on people who don’t want it, and building in-house solutions that are perfect. Instead, we are focusing more on solutions that are simple, can be delivered quickly, and that individual leaders care about and are willing to champion.”



Gap Inc. Outlet: Implementation Road MapThe Council recommends the following steps to begin implementing Gap Inc. Outlet’s practice

First Steps: Line Leader–Owned Talent Planning and Accountability

Step #1: Identify Talent Management Decisions That Can Be Decentralized to Business Leaders—Transfer responsibility to business leaders for talent management strategies that impact employees’ work environment, retention, and development.

Step #2: Determine Metrics for Holding Business Leaders Accountable—Identify the most appropriate metrics to determine business leaders’ success at talent management (e.g., employee opinion surveys, pulse surveys, performance against people objectives).

Step #3: Transfer Ownership of Talent Management Resources to Business Leaders—Give business leaders control over the talent management resources that can impact the talent management strategies for which they have been given responsibility (e.g., Learning and Development, Rewards and Recognition).

Step #4: Integrate Peer Accountability into Talent Management Process—Identify opportunities to provide ongoing peer visibility into business leaders’ results (e.g., monthly publication, intranet dashboards, monthly meetings).

Step #5: Enable Business Leader Collaboration—Create occasions for business leaders to collaborate on talent management challenges and provide ongoing support for efforts (e.g., business leader–led monthly meetings, best practice sharing intranet boardrooms).

Implementation Support


clc_line_leader_owned_talent_planning_and_accountability_gap_inc

Documents

talent outcomes

talent management outcomes

talent management resources

accountability gap

talent management priorities

talent management urgency

line leader engagement

line leaders performa