DEBUNKING 10 COMMON TALENT MANAGEMENT MYTHS Doris Sims

DEBUNKING 10 COMMON TALENT MANAGEMENT MYTHS Doris Sims, SPHR Founder and President Succession Builders, LLC doris@successionbuilders. com Author of the 2009 book: The 30 -Minute Guide to Talent and Succession Management Co-author of the 2007 book: Building Tomorrow’s Talent: A Practitioner’s Guide to Talent Management and Succession Planning Author of the 2001 book: Creative New Employee Orientation Programs @ Copyright 2008 www. Succession. Builders. com

Exploring 10 Talent Management Myths In this session, we’ll explore the most commonly heard questions and issues regarding talent management We’ll discuss core best practice ideas We’ll look at new ways to explain the business need for talent management

Talent Management Defined 3 For the context of this session, Talent Management focuses on the onboarding, identification, assessment, development, and movement of INTERNAL talent

Comparing Financial and People Processes

MYTH #1: THERE IS ONLY ONE BEST PRACTICE TALENT MANAGEMENT METHODOLOGY

Talent Strategy Factors The business goals of your talent management program The geographical spread of your organization The size of your organization The general transparency of other processes in your culture The people, system and budget structure in place to lead and support the talent management strategy The type of organization (i. e. government, profit or nonprofit, public or private, etc. )

Core Best Practices: Three Key Phases 7 1. Consistent Talent Assessment Criteria and Employee Meetings 2. Documented Leadership Discussions and Calibration 3. Development Plans and Action Follow. Through

Talent Assessment Tools 8 A best practice talent assessment process includes: A measurement of an individual’s PAST PERFORMANCE A projection of an individual’s FUTURE POTENTIAL Obtaining career and development needs and interests from THE EMPLOYEE

MYTH #2 ALL TALENT MANAGEMENT INFORMATION AND PROCESSES MUST BE HELD IN CONFIDENCE

Typically Restricted Talent Data 10 The “List” of High Potential Employees Successors usually don’t know which positions they are identified for, although there are exceptions (i. e. retirement) Talent Review Meeting Notes Employee Vacancy Risk Data Compensation or Retention Packages of High Potentials Other Thoughts?

Ideas for Open Talent Communications 11 Overall information / benefits of the Talent Management program to all employees, including High Potential criteria Discussions with employees about their career interests and abilities, as well as their relocation ability Notify high potentials to increase retention, development, career movement and ability to measure results Discuss strengths and development plan information from Talent Review meeting discussions with employees Other Thoughts?

Communication Ideas 12 A Talent Management Web Site Succession Management Presentations and / or Webinars for Business Leaders Management Talking Points Talent Management Guides and/or Quick Reference Guides for Business Leaders Provide webinars, workshops and reference guides for your HR people

MYTH #3 HIGH POTENTIAL EMPLOYEES ARE DEFINED AS THOSE WITH THE ABILITY TO ADVANCE TWO LEVELS

A New Definition… 14 High Potentials have the ability to advance up… AND/OR …across at least two positions over the next few years Making lateral career moves builds a greater breadth of knowledge, skills and experience The ability to make lateral career moves into other departments differentiates high performers and high potentials

A New Definition… 15

High Potential Definitions Other Criteria? - Learning Agility - Desire to advance / move laterally - - - Leadership Abilities (rate based on your leadership values and competencies, strategic abilities, business acumen) Superior interpersonal – people skills At least 1 year tenure to observe sustained performance and other high potential criteria Engagement and self-initiative

MYTH #4 A TALENT MANAGEMENT STRATEGY IS ONLY NEEDED IN LARGE ORGANIZATIONS

Every organization can benefit from talent management… - - In a smaller organization, cross-functional training and procedure documentation is more important Every organization can benefit from employee career discussions, vacancy risk reviews, development plans, etc.

MYTH #5 IF WE DEVELOP OUR HIGH POTENTIAL EMPLOYEES, THEY WILL JUST LEAVE FOR ANOTHER COMPANY

Reduce Talent Turnover Risk - - Notifying and developing high potentials increases retention Start a high potential program with a Kickoff Meeting to set appropriate expectations! As appropriate, provide stock / compensation retention packages for high potentials and key experts Yes, this is a risk…so our other choice is…to not develop our top talent for future positions? ? ?

MYTH #6 IDENTIFYING HIGH POTENTIALS AND SUCCESSORS IS A VERY SUBJECTIVE PROCESS—HOW CAN YOU MEASURE POTENTIAL IF IT HASN’T OCCURRED YET?

Talent Assessment: A Business Process 22 Every type of business decision-making process is both an art and a science: Financial Planning: The Budgeting Process Acquisitions and Mergers: Due Diligence New Product Development: Market Analysis Advertising: Focus Group Feedback Hiring Employees: The Interview Process Developing New Technology: System Requirements Remember: No business process is 100% accurate, but the process helps us to make the best possible decisions to enhance profit and reduce risk

MYTH #7 SUCCESSION PLANNING IS UNNECESSARY IN A DOWNTURN ECONOMY

Is This a Priority in Today’s Economy? Our leaders are saying they won’t be retiring now due the decreased value of their 401(k) / stock Our training and development budgets have been cut so we don’t have money for development We are laying off talent Mergers are taking place as companies collapse What else? ?

MYTH #8 IT IS DIFFICULT TO MEASURE TALENT MANAGEMENT RESULTS

Measure and Report Your Results 26 ü Customize to your Business Goals and Culture ü Generally, the easiest metric to show an ROI is an increase in internal fill and decrease in external recruiting costs ü Decide in your planning stage ü Gather baseline data ü ü Internal versus external fill of leadership positions Turnover rates of leadership positions External leadership recruiting costs Eligibility to retire information

Presentations and Reports That Provide Value

MYTH #9 NOTIFYING HIGH POTENTIALS WILL GIVE THEM A “BIG HEAD” AND CAUSE MORALE PROBLEMS

The “Big Head” and Morale Issue - - Arrogance seems to be a trait that prevents individuals from being identified as a HIPO Make sure your HIPO criteria is very clear and definitely differentiates high performers and HIPOs Ensure all employees know that the HIPO program is not a “stamp on the forehead for life” Communicate, communicate

MYTH #10 DEVELOPING OUR HIGH POTENTIALS WILL BE TOO COSTLY

High Potential / Leadership Development Ideas 31 • Kickoff Meetings • Coaching Groups • 360 Feedback • Mentor Programs • Executive Assessment Centers • Executive Involvement • Job Assignments • • Project Teams Business Simulations and Workshops • Non-Profit Board • Senior Leader Interviews • Community Work • Be Creative! • Leadership Book Clubs • Mentor or Mentee

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