the 2010 talent management strategies conference conference keynotes the 2010 talent management...

Conference KeyNoteskey issues | benchmarks | action plans

The 2010 Talent Management Strategies Conference Leveraging Your Talent to Drive Business Outcomes As a community of business leaders, The Conference Board convenes senior executivesto share cutting-edge ideas and best practices. These Conference KeyNotes summarizethe discussions held by approximately 150 senior executives that attended the 2010 Talent Management Strategies Conference in New York in February 2010. The views expressed are those of the presenters and participants of the conference.

Key Issues Page 2

� Business success depends on effective talent strategies � Implement simple, integrated talent management processes� Prepare high-potential talent for succession� Build leadership accountability into the talent management process

Benchmarks Page 7

� Most CEOs view employee expenditures as combination of cost and investment� Companies need more interaction between HR and enterprise risk management� Human capital poses significant risk to business performance� Human resources plays active role in business strategy� Finding qualified managers and succession talent are significant challenges

Action Plans Page 8

What Conference Participants Plan to Do Differently� Framework and tools� Integration� Accountability

Perspectives from the Conference Sponsor Page 9

CK-022 April 2010

2 Conference KeyNotes The 2010 Talent Management Strategies Conference www.conference-board.org

KEY ISSUESThere is a direct correlation between strong talent management programs and successfully meetingbusiness goals. Therefore, companies need to align their talent management strategies with businessstrategy to stay ahead. Conference attendees and presenters discussed how to leverage talent toachieve positive business results, integrate related people processes to generate qualified talent,create a business-led succession plan to ensure sustainable competitiveness, and build businessleader accountability for talent strategies.

Business Success Depends on Effective Talent StrategiesOrganizations have a better chance at meeting business goals if they have a strong talent managementprogram that is aligned with business strategy. They can foster an alignment of these strategiesthrough regular discussions about talent, implementing simple processes, and educating leaderson the importance talent plays in delivering business strategy.

� Human capital planning enables leaders to evaluate and analyze how the availability of qualifiedtalent impacts business strategy and performance.

� Effective talent management identifies how talent helps the company reach its business goalsas well as outlines through robust analytics the advantages of aligning talent management withbusiness strategies. Talent management is most effective when it is supported with detailed return on investment figures.

� When organizations use strategic workforce planning, they conduct deeper talent reviews, shift talent to meet future needs, blend internal placement of talent with external hiring, focusengagement activities on retaining critical talent, and merge business strategy with humancapital strategy.

� A “one size fits all” approach to talent management will not work, because different departmentshave different needs.

� It is easiest to align talent management strategies to business goals when there is partnershipbetween departments, senior-level support, ample talent development opportunities, commondefinitions for success, measurement mechanisms, and adequate resources.

� Barriers to building a strong talent management program include insufficient financial and peopleresources, unclear ownership of process, complex talent management processes, risk aversionby senior leaders, different talent needs by business units, and ineffective communication.

Partner business and talent management leaders� Business leaders expect human resources to understand the in’s and out’s of the business,

provide honest assessments of talent, and view business situations through a people-oriented lens.Talent management professionals need to stay abreast of market changes and continually look fortalent that will drive business objectives.

� Talent management professionals and business leaders need to use the same language when talkingabout human capital. Linking discussions about talent to business processes ensures that qualifiedtalent is available when needed and increases the credibility of talent management leaders.

� When human resources professionals participate in projects that are led by operations, finance,or some other business function, they can develop a “business voice” and increase credibility bycontributing ideas that address both people and non-people concerns.


Connect business and human resources strategy� Strategic workforce planning enables an organization to create more precise talent management

interventions. Decisions need to take into account short- and long-term business strategies,regardless of economic conditions.

� Human capital risk ranks high among senior leaders’ concerns. Therefore, strategic workforceplanning and enterprise risk management should implement the same risk management processesof identification, assessment, integration, and monitor/update. This way, human capital risk islinked with business process risk and is integrated into the enterprise risk portfolio.

� A large insurance company uses strategic workforce planning to more effectively focus strategictalent decisions and drive human capital conversations. Additional benefits include identifyingmacroeconomic and human capital trends early, creating knowledge transfer processes, under-standing how outsourcing fits into the human capital profile, and managing generational diversity.

Create a strong employer brand� Having a strong employer brand is essential because it lowers costs through reduced turnover

and higher employee engagement. Onboarding contributes to a strong talent brand, since mostemployees decide within the first six months whether they plan to stay with the organization.

� A sound employer brand attracts people who fit your organization and is integrated with otherbranding efforts. Speak to your leaders and employees to develop a list of qualities that describethe corporate culture and that make an ideal employee.

� When rolling out an employer brand, make sure the brand has room to grow, meets people wherethey are, is flexible enough to respond to business shifts, and has metrics that define success.

Implement Simple, Integrated Talent Management ProcessesTalent management programs are most successful when the process for aligning people and corporatestrategies is simple and direct. Organizations should integrate talent management into every aspectof the business including global locations, and not be afraid to embrace social media as a method foremployee development.

Build talent management processes into the system� Talent management processes that link talent readiness to the organization’s values and business

strategies should be hard-wired into the business cycle.

� Effective organizations collect and analyze data on their talent, enlist all members as talent scouts,and talk about talent relentlessly.

� When the current employees of an organization cannot be developed quickly enough to meetbusiness needs, hiring key talent from outside and grooming individuals for specific positionscan help build a leadership pipeline.

� Interview senior leadership to create a definition of a successful leader. Then use this definitionto develop a list of desired competencies and design effective talent management processes.

� Avoid implementing talent management processes without considering how they may impactother existing people processes. Leaders can spend too much time on one process and not seethe overall picture of talent.


Develop a “talent mindset”� Leaders can develop talent through performance reviews and interacting with employees.

Sponsoring action learning projects and implementing recommendations developed by high-potential individuals sends a message throughout the organization that leadership trusts thetalent processes.

� A technology company develops talent through increased exposure to executives. This non-traditional approach places high potentials in leadership roles in community organizations, executive networking programs, special job assignments, and high-impact temporary assignmentsto develop key competencies that are directly aligned to business strategy.

� A large retailer adopted what it calls the “know, grow, and move” philosophy to get to know itstalent better and figure out how to fill as many new roles from within as possible. In the “know”phase, heat maps show how well leaders know the high potentials; in the “grow” phase, a compositeof core, elected, and selective development experiences supports the accelerated development ofidentified individuals; and in the “move” phase, individuals are placed in roles that will prepare themfor store management positions.

Grow talent globally� Assess everyone from entry-level workers to senior leaders to determine who has a global mindset.

The results will also highlight areas where individuals can increase their cultural competence.

� Organizations that have expanded internationally or gained new employees from an acquisition needto assess their talent for placement in new roles and identify people who can lead in a new culture.

� Global organizations can accelerate the development of talent in emerging markets by rotatingthem into developed markets and then returning them to their local region. Deciding whether touse expatriate or local talent depends on the maturity of the country, the talent available in a givenmarket, and the cultural norms of the area.

� When a large medical device company expanded outside of North America, it created a global talentpipeline by hiring foreign students who had attended U.S. universities and wanted to return to theirhome countries. The organization created internships and an accelerated development program tobuild manager capability.

Embrace social networking for self-development� Organizations are hesitant to use social media for talent management because they think it

won’t provide enough of an ROI, older workers will reject it, and intellectual capital will be leaked.But it can be a valuable medium. Sales clerks at a large, national electronics retailer created andlaunched a new website to share knowledge and customer experiences across a geographicallydispersed enterprise. The start-up costs for this site, which was hosted outside of the corporatefirewall, was only several hundred dollars.

� Organizations can integrate social media into their structured learning programs. By deliveringcontent in chunks, they can use a variety of tools to network participants, track content completion,integrate content from the web, and assess the quality of a participant’s work. Additionally, socialmedia tools can reinforce key learning points after classroom training.

� Collaboration software can help increase productivity across the organization. It eliminates theneed for update meetings and provides direct communication when others are working on similarprojects. Employees can use it to identify collaboration opportunities across departments andgeographies by using key words and share helpful websites with bookmarking tools.

� Social media — both external and proprietary — needs to make the end user’s life easier, integrateseamlessly with other systems and tools, be easy to access and learn, and add value to the community.Be creative with technical resources, start small, and listen to your users.


Prepare High-potential Talent for SuccessionHigh-potential talent is engaged differently than other employees. The most effective way to developthis group is to provide a combination of leadership mentoring, job experiences, and continuouslearning that is linked to the organization’s strategy.

Identify high-potential talent� Employees are considered to be “high potential” when they exhibit the following qualities:

foundational (intelligence and personality), growth (how they learn and are motivated) and career(job performance and leadership). Use tests and assessments to determine whether an employeeis high-potential.

� Analyze a high-potential’s ability to achieve more senior roles in the organization as well as howhis/her skills can be applied across the organization. This will help to determine the appropriateresources needed to develop the talent.

� Create a transparent talent development program by having open discussions about the processfor selecting high potentials.

� Talent does not have to be mobile to be considered high potential. As technology advances, organizations can be more flexible in meeting talent needs across geographies without movingemployees. If a role does require talent to relocate, having them move during the years early intheir career or after children have left the house works best.

Groom high-potential talent� Job swapping can accelerate talent development. Use competency-based assessments to make

sure the right people are in the right place, and make sure they are adequately supported.

� The development needs of high potentials may vary depending on which generation they are a member of. Effective ways to groom younger employees include increasing transparency, usingclassroom training, and moving talent early in their career.

� A large financial services firm historically had limited success with building a pipeline of leadershiptalent. This is because it used charisma, retrospective talent reviews, superficial talent assessments,unstructured dialogue, and informal processes to identify high-potential talent. To develop the skillsit needed and support business growth, the company took an aggressive approach, which includedplacing individuals in critical roles outside their area of expertise. For example, someone whoprimarily had marketing experience was asked to run a business line.

� A color-coded heat map provides a snapshot of the talent available to meet current and futurebusiness needs. Individuals are assessed against a competency profile, and then work with theirmanagers and the executive development team to create a focused, multi-year development plan.Development options include working with the local community and customers, structured learning,mentoring and coaching, teaching others, networking, and on-the-job development.


Build Leadership Accountability into the Talent Management ProcessTalent management metrics and analytics should align directly with long-term, strategic business outcomes.

� Have leaders collectively create talent management guidelines. Giving them ownership will increasetheir accountability when growing/moving high-potential talent.

� Senior leaders need to know their talent and hold line managers accountable for conducting high-quality talent reviews.

� A blended talent review approach that emphasizes both data and dialogue can help leaders makegood decisions that benefit the entire organization. Engage leaders in talent management processesthrough continual dialogue, helping them see how the series of activities are connected to theoverall business strategy.

� Use a simple, color-coded “depth chart” to clearly indicate areas that need attention. Dashboardshighlight talent gaps and enable leaders to target the skills they need to develop to achieve long-termbusiness goals.

The 2010 State of Talent Management Survey

The New Talent Management Network, a global network for talent management professionals, found in itsJanuary 2010 Talent Management Survey* that talent management provides a benefit, but that there arestill challenges. Key findings include:

� Formal talent management groups tend to materialize when an organization has 5,000 or more employees.They consider an organization’s senior leaders their clients and report to the company’s top human resourcesleader. Formal talent management groups tend to focus on talent reviews, high-potential development andassessment, and feedback.

� Talent management adds value, but there is still room for improvement. High-potential identification, talent reviews,and goal-setting processes are more effective when run by formal talent management groups. Areas of improvementinclude executive coaching, assessment, and other key drivers of talent growth.

� Companies are cautiously optimistic about the future: 45 percent of talent management professionals surveyedsee talent management expenditures increasing in 2010, with only 17 percent predicting staff increases. More than70 percent feel that the ability to hire quality talent remains an issue, with only 29 percent concerned that key talentwould be lost.

* Mark Effron and Richard S. Wellins, PhD, 2010 State of Talent Management, New Talent Management Network, January 2010.http://www.newtmn.com/survey.php


BENCHMARKSConference participants were polled on the following questions:

Acombination

67%

How are expenditures onemployees treated by your CEO?

Chart 1

Some expendi-

tures are viewed

as costs to be

minimized while

others are viewed

as investments

in the future

As

investments

in future

productivity/

growth

31

2

As costs to

be minimized

020 40 60 80

100%

To what extent does your organization’s human resources function work with

enterprise risk management to identifyhuman capital risks to your company?

Chart 2

Not at all

32% 30

To some

extent

17

To a

moderate

extent

11

To a

very great

extent

10

I don’t know

Major76%

How great a risk does humancapital pose to your company’s

business performance?

Chart 3

22

2

Minor

Moderate

0

20 40 60 80

100%

Which of the following bestdescribes the relationship betweenthe human resources function and

the business strategy of your corporation?

Chart 4

Human resources

helps implement

business strategy

once it has

been developed

47% 45

Human resources

is a full partner

in developing

and implementing

business strategy

7

Human resources plays no

role in business strategy

0

20 40 60 80

100%

Which of the following is thegreatest challenge facing your

talent management efforts today?

Chart 5

Top

management

succession

planning

26% 21 13

Finding a

qualified

skilled

workforce

Finding

qualified

managerial

talent

21

Stimulating

innovation/

creativity/

entrepreneurship

Effective pay for

performance and

accountability

metrics

19


ACTION PLANSWhat actions will participants take after the conference? A post-conference “action survey”highlights a range of objectives.

Framework and Tools� Refine my company’s definitions of talent management and high potential.

� Create talent management strategies by business unit.

� Launch a simple model for career development.

� Design and implement a scalable talent review process.

� Create simple, balanced processes and technology to drive a talent management mindset.

� Use a simple nine-box talent profile and mini-assessments for talent development.

� See how social networking tools can be used in talent management and development.

� Create depth charts or heat maps to understand potential talent gaps.

Integration� Implement workforce planning to predict talent needs.

� Link leadership development and succession management initiatives.

� Make talent management initiatives relevant to the business strategy.

� Align leadership competencies to business goals.

� Utilize competency assessments to map leadership development activities.

Accountability� Measure outcomes of talent management initiatives.

� Rate senior leaders on how well employees know them.

� Shift accountability for high-potential talent development to business leaders.

� Define business drivers and resulting talent implications.

� Create integrated strategic talent plans to discuss with business leaders.


Perspectives from the Conference SponsorWe appreciate Development Dimensions International’s (DDI) sponsorship and support of the 2010Talent Management Strategies Conference. Funds from conference sponsorships are used to supportThe Conference Board research programs. The perspectives expressed here are DDI’s, reflecting theconference presentations and the discussions that took place among participants, and DDI’s owninsights into “Leveraging Your Talent to Drive Business Outcomes.”

As we enter the economic upturn, what will drive the success of your business? Aggressive top-linegrowth? Entering new global markets? Launching the next blockbuster product? No matter whichfuture course you plot for your business, success will rely on flawless execution. And — in turn — flawless execution will largely depend on your organization’s ability to choose and prepare the bestpossible leaders for tomorrow.

Leadership Pipelines Promise AnswersMore and more organizations are executing talent management strategies to close the leadership gapand have leaders in place and ready to drive your business strategy, and in turn, the desired results.A robust pipeline encourages promotion from within (which is less risky) and demonstrates toemployees with potential that your company supports a “grow your own” strategy.

We define our Leadership Pipeline approach as: “A critical business process that provides organizationswith a sustainable supply of quality leaders (at all levels) to meet the challenges of today and tomorrow.”A strong pipeline is an integrated approach that must be supported by senior management. It is not asingle program or tool, rather it’s a process that provides both the right quantity and quality of leadersin time to step up and meet pressing business challenges.

Our ApproachA sound pipeline approach: 1) focuses on early identification of those who have both the motivationand ability to be future leaders; 2) ensures organizations diligently collect and use “intelligence”on the performance of their leaders to make sound selection, promotion, and placement decisions;and 3) provides these leaders with accelerated support and development to ensure success.

Leadership Pipeline Pyramid Model


In brief, the components of the pyramid are:

� A strong foundation based on an organization’s specific Business Drivers and strategic priorities.

� Inclusion of four broad talent levels. If one level is not addressed, there is a weak link in thesupply chain, impeding pipeline flow.

� Painting a clear picture of leadership performance at each level through a process we call Success ProfilingSM.

� Establishing Acceleration Pools to ensure those leaders with the highest potential receivethe support, focused development, and organizational attention they need to succeed.

Pipeline Best Practice #1: Start with where your business is going.Those charged with developing organizational talent need to start with the end in mind by recognizingtheir current and future business needs, and designing talent strategies accordingly. At DDI, we talkabout these goals in terms of Business Drivers.

Business Drivers represent those priorities that leaders must focus on in order to successfully exe-cute the strategic and cultural priorities of their organization. Business Drivers help an organization’ssenior team and HR professionals frame talent development discussions in the terms of the business.They also resonate well with C-level executives.

Pipeline Best Practice #2: Define leaders who fit the profile for success.Once you have determined your Business Drivers, you need to develop what success looks likefor each level of leadership. Our Success ProfilesSM define leader performance holistically, painting a picture of what a high-performing leader looks like. Success Profiles operationalizethe Business Drivers.

When using a Success Profile to select and develop leaders, it becomes important to be realisticabout those elements of the profile that can be developed and those that may not. Many are difficultto teach because they are personality characteristics. For example, it may be possible to teachsomeone to do business analysis or help them gain experience through a special assignment, but it’s very difficult to develop a person’s willingness to take risks or their humility. Those difficult-to-develop portions of a Success Profile, therefore, should receive more attention in the identificationand selection of leaders.

Pipeline Best Practice #3: Manage leaders in transition.If a leader is going to stumble on the climb up your leadership ladder, they’re most likely to slipduring a time of transition into their new role. Whether becoming a frontline leader for the first timeor assuming a senior role with high visibility, making a transition comes with many challenges.

Organizations must anticipate and understand the challenges leaders will face as they move up theladder and must put into place the support systems (e.g., development, coaching, and mentoring) that will help high-potential leaders make difficult transitions easier and smoother. Falling off theladder midway up is not beneficial for the leader or the organization.

Perspectives from the Conference Sponsor (continued)


Perspectives from the Conference Sponsor (continued)

Pipeline Best Practice #4: Develop your talent at all levels.More and more organizations are turning to a pipeline strategy when it comes to developing their talent.They have specific strategies in place for their individual contributors, frontline leaders, mid-level leaders,and senior executives. Research has shown that this approach leads to better bottom-line results.

When it comes to exceptional development, we believe you must start with the end in mind, aligndevelopment with diagnosis, focus on behavior change and application, and measure outcomes.Together these best practices produce sustainable business results.

Pipeline Best Practice #5: Create Leadership Acceleration Pools.Acceleration Pools are groups of high potentials who are fast-tracked to assume growing leadershipresponsibilities. They are typically a subset of the total leadership population, allowing organizationsthe ability to devote precious resources to those most likely to succeed over time. These leaders arecarefully identified and demonstrate the strongest leadership potential.

One challenge organizations face is who to put in an Acceleration Pool®. Often organizations look onlyto past performance to identify their future leaders. What this approach is lacking is a focus on futurepotential. You need to look for leaders who possess future leadership potential to ensure your differ-ential devleopment investment is targeted at the right individuals.

Pipeline Best Practice #6: Choose the right people to move up the ladder.While entrance into an Acceleration Pool® is based on performance, promotion decisions shouldbe based on actual readiness to advance. Assessing readiness not only helps you make accurateplacement and promotion decisions, it also pinpoints the specific strengths and opportunities forfurther development.

Decisions about who to promote — and when they are ready — need to be based on in-depth assessment.Multiple approaches are available, including day-in-the-life simulations, online competency assessments,personality and leadership inventories, multi-rater surveys (360˚), and objective behavior-basedinterviewing. Using a combination of these techniques is your best bet.

For more information on DDI’s Leadership Pipeline solutions, including white papers that addresseach level of leadership, visit www.ddiworld.com/leadershipipeline, contact your DDI representative,or call 1-800-933-4463.

Copyright © 2010 by The Conference Board, Inc.All rights reserved. The Conference Board® and the torch logo areregistered trademarks of The Conference Board, Inc.

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Related Resources from The Conference Board

Research Reports

The 2010 Executive Coaching Survey,Research Report 1464, March 2010

Strategic Workforce Planning in Global Organizations,Research Report 1457, January 2010

I Can’t Get No…Job Satisfaction, That Is, Research Report 1459, January 2010

A Global Barometer for Measuring Employee Engage-ment, Research Report 1460, December 2009

Working at the Intersection of Human Resources,Ethics, and Compliance — The Need for Collaboration,Research Report 1453, October 2009

Building Risk Awareness into Performance:Integrating ERM and Performance Management,Research Report 1448, September 2009

The Ill-Prepared U.S. Workforce, Research Report,BED-09Workforce, August 2009

Implementing Strategic Workforce Planning,Research Report 1444, June 2009

Evidence-Based Human Resources: A Practitioner’sGuide, Research Report 1427, June 2009

ConferencesLeadership Development Conference, May 20-21,New York; June 10-11, San Diego

Human Resources Weeks 2010, June 7-11, New York;June 28-30, New York

Recognition Roundtable, June 21, New York

Succession Management Conference, October19-20, New York

CouncilsAdvisory Council on Human Resources Management

Asia-Pacific Human Resources Council

Asia-Pacific Human Resources Management Council

Asia-Pacific Talent, Leadership Development andOrganization Effectiveness Council

China Human Resources Council

Council for Division Leaders — Human Resources

Council for Division Leaders — Human Resources II

Council for Mid-Market Human Resources Executives

Council of Talent Management Executives

Council of Talent Management Executives II

Council of Talent Management Executives III

Council on Executive Coaching

Council on Learning, Development andOrganizational Performance

European Council of Human Resources Executives

European Council on Learning, Leadership, andOrganisational Development

Councils (continued)European Council on Strategic Workforce Planning

Executive Council for Talent, Organization andDevelopment

Global Human Resources Council

Global Human Resources Council II

HR Executive Leaders Council

Human Resources Council - India

Human Resources Council - Mexico

Leadership Development Council

Learning and Knowledge Management Council

Asia-Pacific Talent, Leadership Development andOrganization Effectiveness Council

Council on Learning, Development andOrganizational Performance

Executive Council for Talent, Organization andDevelopment

Leadership Development Council

The Conference Board Council ProgramFor more than 80 years, The Conference Boardhas organized small, intimate, cross-industrynetworking peer groups that bring together executives in a specific function to share information and best practices. These highlyinteractive members-only networks facilitateongoing interaction, communication, andbenchmarking among leaders from the world’stop companies. Each group is a unique member-driven forum enhanced by the vast resources ofThe Conference Board, including our research,economic forecasts, conferences, ResearchWorking Groups, webcasts, and special events.Periodic face-to-face meetings help to foster thestrong personal relationships that make councilparticipation such a powerful ongoing resourcefor today’s busy executives who need a sourceof immediate and trusted feedback.

For more information on The Conference Board Council Program, visitwww.conference-board.org/councils

Publications teamAuthor Joanne LoceEditor Sheri RothmanPublishing Director Chuck MitchellDesign Peter DrubinProduction Andrew AshwellConferences Mary Beth Reidy

The Conference Board is a global, independent business membership and research association working in the public interest. Our missionis unique: to provide the world’s leading organizations with the practical knowledge they need to improve their performance and betterserve society. The Conference Board is a non-advocacy, not-for-profit entity, holding 501 (c) (3) tax-exempt status in the United States.

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