SHRM

Thought Leaders ConferenceScottsdale, AZ

October 5-6, 2009

“Their argument is a strong one, and the idea that companies would benefit in the long run from putting more into preparing the right people for the right jobs seems timely. As we look for ways to dig our way out of recession, it is worth remembering that effective and creative people are any company’s best weapon in the war, not for talent, but for survival.”

Financial Times March 12, 2009

Strategy, Strategy Execution and Resource Accountability

Strategy Execution

ResourceAllocation

• Financial

• Material

• Time

• Data

• Workforce

• Budget

• Supply chain

• Schedules

• Information systems

• ???

ResourceAccountability

Strategy

Differentiation to create

competitive advantage

How grow?

Where play?

How win?

Value creation:−Customer−Economic

Least Effective in Business SkillsHR staff are more effective in the skills

that characterize their most traditional roles

Perc

en

tag

e A

nsw

eri

ng “

Eff

ect

ive”

or

“Very

Eff

ect

ive”

People Skills Mean = 42%

HR Expertise Mean = 52%

Implementing Skills Mean = 35%

Business Skills Mean = 29%

Effectiveness of HR Skills

Skill Effectiveness Mean = 39%

Least Effective in Business Skills>08-20-2008

17%12%

27%

60%

40%

28%27%

40%41%

63%

53%

44%48%

43%40%

44%

0

10

20

30

40

50

60

70

APPLYIN

G B

USINESS

ANALYTI

CS

TAK

ING

A G

LOB

AL

APP

RO

AC

H

The Workforce and Value Creation

HR as a Strategy Player

Strategy and Talent:Evolutionary vs. Revolutionary Change

Growth• Financial• Customer

Growth/Change Expectations

2003 2004 2005 2006 2007 2008 2009 2010

Evolutionary vs. Revolutionary Change

Growth• Financial• Customer

Growth/Change Expectations

2003 2004 2005 2006 2007 2008 2009 2010

Culture/Talent/Capability

Capabilities

STRATEGIC CAPABILITY 1

Evolutionary vs. Revolutionary Change

Growth/Change Expectations

2003 2004 2005 2006 2007 2008 2009 2010

GrowthTalent

SC 2

SC 3

SC 4

SC 5

STRATEGIC POSITION 1

SP 2

SP 3

SP 4

SP 5

Evolutionary vs. Revolutionary Change

• Financial• Customer

Growth/Change Expectations

2003 2004 2005 2006 2007 2008 2009 2010

Capabilities GrowthTalentCulture

Competitive Context

Strategy Innovation

Structural CostStrategic Capabilities

Speed

Competitive Context

Strategy Innovation

Structural CostStrategic Capabilities

Speed

(How different?)

Competitive Context

Strategy Innovation

Structural CostStrategic Capabilities

Speed

(How different?)

(What workforce investments?)

Competitive Context

Strategy Innovation

Structural CostStrategic Capabilities

Speed

(How different?)

(What workforce disinvestments?)(What workforce investments?)

Growth Strategy Matrix

XYZ Corp. Human Capital Plan Strategic Talent HCP Business Leader Recap Position Scorecard Line of Business: Retail Appliance Division

Business Strategy: Low cost producer and major provider to "Big Box" retailers for highly price sensitive retail customers

STATUS STRATEGIC CAPABILITIES: Abysmal

(1) Less Competitive

(2) Competitive

(3) Very Competitive

(4) World Class

(5)

Executive Leadership 3

Manufacturing Excellence 4

Sales/Marketing 4

R&D/New Product Development 2

STRATEGIC POSITIONS:

Number Top

Talent Emerging

Talent Career Level

Move

Action Plans

– VP Marketing 1 1 Develop more talent from sales and marketing

– VP Mfg. 1 1 Consider early replacement of VP Mfg.

– CFO 1 1

– Plant Managers 16 4 3 7 2

– Area Supervisors 48 7 3 33 5

Exit moves and "careerists." Hire developing talent. Hire and move "top talent" into the 38 career level/move positions

– Marketing Directors 6 2 1 1 2

– Brand Managers 5 1 1 3 0

– Consumer Insight Specialists 7 2 4 0 1

– Merchandising Managers 6 1 0 5 0

Exit moves and initiate campus recruiting and career development plans to strengthen marketing talent at all levels

– Design Engineers 11 3 0 8 0

– Cooling Specialists 4 1 1 2 0

– Laundry Specialists 5 1 0 4 0

Initiate external hiring program for "top talent" at all levels. Begin to exit careerists – we have 14 of 20 in this category.

111 = 37 64 Mentors needed

Six Month Target

XYZ Corp. Human Capital Plan Strategic Talent HCP Business Leader Recap Position Scorecard Line of Business: Retail Appliance Division Business Strategy: Low cost producer and major provider to "Big Box" retailers for highly price sensitive retail customers

STATUS

STRATEGIC CAPABILITIES: Abysmal (1)

Less Competitive (2)

Competitive (3)

Very Competitive (4)

World Class (5)

Executive Leadership 3

Manufacturing Excellence 4

Sales/Marketing 4

R&D/New Product Development 2

STRATEGIC POSITIONS:

Number Top Talent Emerging

Talent Career Level

Move

Action Plans

Executive Leadership 1 1

– VP Marketing 1 1 Develop more talent from sales and marketing

1 0 – VP Mfg. 1 1

0

Consider early replacement of VP Mfg.

1 1 – CFO 1

Manufacturing 16 4 2 7 2

– Plant Managers 15 9 5 5 48 7 3 33 5

– Area Supervisors 42 15 12 15

Exit moves and "careerists." Hire developing talent. Hire and move "top talent" into the 38 career level/move positions

Sales/Marketing 6 2 1 1 2

– Marketing Directors 4 4 5 1 1 3 0

– Brand Managers 5 3 1 1 7 2 4 1

– Consumer Insight Specialists 7 5 2 0

6 1 0 5 0

– Merchandising Managers 6 3 3 0

Exit moves and initiate campus recruiting and career development plans to strengthen marketing talent at all levels

R&D/New Product Development 11 3 8

– Design Engineers 11 9 0

2 0

4 1 1 2 – Cooling Specialists 3 3

0

5 1 4 – Laundry Specialists 6 4

0 1

0

Initiate external hiring program for "top talent" at all levels. Begin to exit careerists – we have 14 of 20 in this category.

111 103

= 37 64

Mentors needed

Key: Today = Black. Six month target = Red

XYZ Corp. Human Capital Plan Strategic Talent HCP Business Leader Recap Position Scorecard Line of Business: Retail Appliance Division Business Strategy: Low cost producer and major provider to "Big Box" retailers for highly price sensitive retail customers

STATUS

STRATEGIC CAPABILITIES: Abysmal (1)

Less Competitive (2)

Competitive (3)

Very Competitive (4)

World Class (5)

Executive Leadership 3

Manufacturing Excellence 4

Sales/Marketing 4

R&D/New Product Development 2

STRATEGIC POSITIONS:

Number Top Talent Emerging

Talent Career Level

Move

Action Plans

Executive Leadership 1 1

– VP Marketing 1 1 Develop more talent from sales and marketing

2 – VP Mfg. 1 1

0 Consider early replacement of VP Mfg.

1 1 – CFO 1

Manufacturing 16 4 2 7 2

– Plant Managers 15 9 5 5 48 7 3 33 5

– Area Supervisors 36 15 15

Exit moves and "careerists." Hire developing talent. Hire and move "top talent" into the 38 career level/move positions

Sales/Marketing 6 2 1 1 2

– Marketing Directors 4 4 5 1 1 3 0

– Brand Managers 4 3 1 1 7 2 4 1

– Consumer Insight Specialists 7 5 2 0

6 1 0 5 0

– Merchandising Managers 6 3 3 0

Exit moves and initiate campus recruiting and career development plans to strengthen marketing talent at all levels

R&D/New Product Development 11 3 8

– Design Engineers 9 7 0

2 0

4 1 1 2 – Cooling Specialists 3 3

0

5 1 4 – Laundry Specialists 6 4

0 1

0

Initiate external hiring program for "top talent" at all levels. Begin to exit careerists – we have 14 of 20 in this category.

111 92

= 37 64

Mentors needed

Key: Today = Black. 12 month target = Red

One Year Target

HR’s Biggest Challenges

Thinking like a strategist

Scoring on the scorecard of the business

Understanding that numbers are the language of organizations

Understanding how, where and who creates customer and economic value

Developing strategic data for strategic workforce decision making

Self Assessment:

AbysmalFairly

CompetentFully

CompetentAmong the

Elite World Class

1 2 3 4 5

Strategic Talent as a Sustainable Source of Competitive Advantage: Alignment for Value Creation

Old Focus New Focus

Question Asked

Data Needed Decisions Made

Question Asked

DataNeeded

Decisions Made

Communication Is our workforce

satisfied / happy? Traditional job

satisfaction survey

Give the workforce more “satisfiers”

Is our top talent in strategy position thrilled with our firm?

Strategic engagement survey

Provide top talent what is needed to retain and motivate them

Work Design

How do we do our work?

Job descriptions Did we accurately capture how work was done?

Are we focusing on value creation in every job?

Performance Appraisal data/ information

What work is strategic? Support? Surplus?

Selection

Are we “fair” in our selection process?

Adverse impact analysis

Remove all selection tools that have an adverse impact

How well does our top talent in strategic roles compare to the labor supply?

External market assessment of our talent

Keep and reward top talent that benchmarks well against the external labor supply

Training/ Development

How did our participants feel about our training?

Conduct post training “smile” surveys

Remove unpopular instructions

How can we accelerate the skills of our emerging talent in strategic roles?

Identification of developmental needs of emerging talent

Develop rotational, mentors / coaches and training programs for emerging talent in strategic positions

Performance Management

Are performance appraisals completed and on time?

Submission on due date and complete

Withhold increases until performance appraisal forms are completed

Is our performance management system a tool to execute business strategy?

Analysis of alignment of performance management systems

Use zero-based strategic work planning/ budgeting

Rewards

Is our program fair? Analysis of distribution of increases

Everyone gets a raise

Are we adequately rewarding our value creators for their success?

Assess relationship between strategic performance and extraordinary rewards vs. lower performers

Assure that we never abuse our best performers with inadequate rewards (or over reward our poor performers)

Transitioning HR Practices

20

LINE MANAGEMENT’S WORKFORCE RESPONSIBILITY: The Manager’s HR Roles Manager’s Rating

PERFORMANCE MANAGEMENT: How well does my manager… Not at all Somewhat Well Very well Extremely

well

1. detail what is expected of me in my job? 1 2 3 4 5

2. provide feedback on how well I am performing throughout the year? 1 2 3 4 5

3. provide equitable rewards and recognition based on my performance? 1 2 3 4 5

4. demonstrate interest in my professional development and provide me with stretch experiences? 1 2 3 4 5

SELECTION/STAFFING: How well does this manager…

1. detail performance and competency expectations in preparing to make staffing/selection decisions? 1 2 3 4 5

2. interview candidates and provide detailed feedback to HR? 1 2 3 4 5

3. ask HR for a list of internal candidates? 1 2 3 4 5

4. review internal candidates and provide feedback on each? 1 2 3 4 5

DEVELOPMENT: How well does this manager…

1. hold individual one-on-one development sessions separate from performance appraisals? 1 2 3 4 5

2. discuss career opportunities and offer developmental assignments to enhance eligibility? 1 2 3 4 5

3. contacts their manager to aid in employees’ career growth? 1 2 3 4 5

4. provide candid feedback about reality of career advancement? 1 2 3 4 5

WORK DESIGN/REDESIGN: How well does this manager…

1. continually redesign work to add greater strategic value? 1 2 3 4 5

2. eliminate work which no longer adds value? 1 2 3 4 5

COMMUNICATIONS: How well does this manager…

1. provide strategic direction for our group? 1 2 3 4 5

2. continually remind us how we must grow (improve our group’s contributions)? 1 2 3 4 5

3. remind us of our obstacles and what we need to do to remove them? 1 2 3 4 5

4. admonish us of the metrics indicative of our success and where we stand? 1 2 3 4 5

REWARDS AND RECOGNITION: How well does this manager…

1. provide me recognition throughout the performance period? 1 2 3 4 5

2. inform me of what more I need to do to get more rewards? 1 2 3 4 5

3. make recognition of outstanding performance in public? 1 2 3 4 5

4. communicates the value of our team incentive and why we receive it? 1 2 3 4 5

1. Think like a strategist

2. Ask the right questions

3. Develop the right metrics

4. Use metrics to make strategic workforce decisions: minimize risk and maximize value

5. Hold leaders accountable for the management of their strategic workforce

The “Back Home” Challenge— The Charge —