Developing Executing Your Integrated Talent Management Strategy Ron

Developing & Executing Your Integrated Talent Management Strategy Ron Hanscome, HRchitect August 23, 2012 © 2012, HRchitect, Inc. 1

Agenda § Situation summary § Integrated Talent Management (ITM) concepts & models § ITM strategy development & execution § Final thoughts © 2012, HRchitect, Inc. 2

Speaker Bio § HCM Technologist for 27+ years § Practitioner, consultant, software vendor executive, researcher / industry analyst § Current role: VP, HCM Systems Strategy, HRchitect © 2012, HRchitect, Inc. 3

A few words about… §Human Capital Management (HCM) strategy and HCM systems evaluations, implementations, integration, optimization §Team of senior-level HCM systems professionals that work as a collaborative team delivering end-to-end HCM consulting services §More than 2000 successful consulting engagements over the past 15 years for more than 900 clients §Founded in April 1997, Headquartered in Frisco, TX © 2012, HRchitect, Inc. 4

Situation summary § 2011 ended with an uneven recovery and some trepidation continuing deep into 2012 § Business response: o From cost cutting (‘ 09) to cautious investment (‘ 10) to more widespread growth & hiring (1 H/11) o Some jobs coming back to US? o Modest growth predicted for 2012…pending resolution of EU debt crisis, US election results, etc. How will all this impact your organization and its people? 5

Situation Summary • In particular, what about these basic employee types? o o “Happy to have a job” “Quit & Stay” “Scarred Survivor” “Biding My Time” § US overall job satisfaction has retreated from a high of 86% in 2009 (Source: SHRM 2011 Research Report) § 49% of US workers say “My job is unrewarding and saps my energy” (Source: Right Management Survey, 2011/12) © 2012, HRchitect, Inc. 6 6

Good questions for HR • How do we re-engage our employees? • What talent do we need as business improves? How is that different from now? • What are the current and future talent gaps? • Which positions should we grow from within? • Is our talent properly deployed now? • How do we keep the best / brightest growing with us? • Are we prepared for planned and unplanned leadership needs/changes? The ability to find, measure and develop talent has never been more important – but how? © 2012, HRchitect, Inc. 7

One good answer… Integrated Talent Management (ITM) • Definition: A comprehensive approach to maximizing the performance of the workforce by deploying integrated processes and enabling technologies • Goal: break down the process and information barriers between HR functional silos • Done right, ITM should permeate the entire employment / talent lifecycle 8

…improperly executed… • Many “ 1 st generation” talent management initiatives have not met expectations o o Cost/benefit User adoption Improving HR effectiveness Impacting business results © 2012, HRchitect, Inc. 9

…improperly executed… • Contributing Factors: o o Immature technology Project management issues Mismanaged roll-out, change management Lack of an aligned, integrated talent management strategy How do we learn from past mistakes and take 2 nd generation ITM implementations to the next level? © 2012, HRchitect, Inc. 10

Employment/Talent Lifecycle Source: HRchitect © 2012, HRchitect, Inc. 11

A Conceptual Model for ITM © 2012, HRchitect, Inc. 12

Developing & Executing ITM © 2012, HRchitect, Inc. 13

Philosophy “What is our overall approach to managing talent? ” • What are your firm’s people management operating principles? o What are the variables (worker level, type, etc. )? • What changes would make an ITM approach feasible? o Breaking down function HR silos o Embracing and managing change • Is your firm willing to sign up for the changes? o Initial and ongoing executive sponsorship © 2012, HRchitect, Inc. 14

Strategy “What are the high level focus areas and outcomes? ” desired • Business linkage • Variations by geography and location o o Workforce composition (demographics, types) Culture Adaptability Use of social networking / collaboration tools • Determine key job families o ITM investment is not spread like peanut butter! • Characteristics of top performers © 2012, HRchitect, Inc. 15

Science “What tools & methodologies will enable us to best measure & predict outcomes? ” • Applying the principles of individual & organizational psychology to HR o o o Skills, behaviors, competencies Performance Leadership Engagement Fit to culture • Forms the basis of assessment (pre and post-hire) & engagement analysis • Enables linkage to business outcomes • Includes development of a measurement framework © 2012, HRchitect, Inc. 16

HCM metric taxonomy Predictive Modeling Impactful Effective Correlated Analytics Contextual Embedded Analytics Metrics Delivery (Dashboards) Efficient Information Distribution Complexity © 2012, HRchitect, Inc. 17

Metrics that Matter (learning) Impact of learning on business results Trainee progress vs. dev plans Impactful Effective % of ees w/ dev plans Cost per training hour Efficient % employees trained Number of training days/programs per yr Learning forecasting Learning Effectiveness Analysis Efficiency of training enrollment Performance of trained vs. untrained Impact of learning on dept schedules/budget Complexity © 2012, HRchitect, Inc. 18

Metrics that Matter (performance) Impact of perf mgmt on business results Perf Mgmt / Learning linkage Impactful Effective % of ees unreviewed for > 2 yrs. Effectiveness of perf Pay for Performance mgmt Alignment Perf. ratings distribution Efficient % employees reviewed Efficiency of perf mgmt process Perceived credibility of perf mgmt Number of reviews completed on-time COMPLEXITY © 2012, HRchitect, Inc. 19

Developing the measurement framework • Don’t “boil the ocean” and attempt to measure everything all at once • Dialogue with stakeholders to determine the most critical metrics • Develop an initial metrics subset • Build a timeline for extending the metrics framework with additional subsets • Remember to use results from the initial subset to drive the extensions © 2012, HRchitect, Inc. 20

Process “Which practices maximize process efficiency, effectiveness and business value? ” efficiency effectiveness business value • Some level of redesign must occur in order to leverage new technologies o Otherwise, why bother? • Identify critical leverage points between ITM functions (shared data, outcomes, metrics) o Examples – recruiting, performance management, learning • Build in metrics from the ground up © 2012, HRchitect, Inc. 21

Process • Key outcome for this phase – high-level process redesign to drive technology selection o Again, apply the 80/20 rule! • Detailed redesign at this point is premature o Detailed “to be” process designs are dependent on the specific enabling technologies selected o Whatever is implemented will have gaps that will require process adjustments o Going detailed at this point will waste time and resources • Wait to do detailed process redesign until the fit/gap analysis phase of implementation © 2012, HRchitect, Inc. 22

Technology (finally) “What tech solution(s) best enable our ITM processes? ” • Tech strategy linked to HR strategy linked to business strategy – not vice versa • Focus on your real requirements, not bells & whistles (most end up never being used) • Pursue scenario-based evals vs. checklist-style RFPs • Assess other decision drivers than functionality & cost Vendor Viability Package User Experience Service / Support Technology & Scalability Global Capability Integration / Interoperability Configurability Remember the due diligence process! © 2012, HRchitect, Inc. 23

The Technology Bottom Line • No vendor yet delivers functionality equally well across all ITM functions o Some are getting close • Many vendors are working hard to: o Expand their functional footprint o Incorporate social, mobile & collaboration o Move into other geographies © 2012, HRchitect, Inc. 24

The Technology Bottom Line • Consolidation will continue • Growth by acquisition = a potential mess “under the hood” • The wonders of “SOA” and “Plug & Play” integration are often oversold – caveat emptor! © 2012, HRchitect, Inc. 25

Implementation “How do we deploy the new technology-enabled processes to achieve desired strategic outcomes? ” Now, the real work begins… • Detailed implementation planning • Preliminary product training • Detailed fit/gap analysis • Detailed process redesign • Deployment of testing instances / zones for conference room pilot • Integration to 3 rd party and enterprise apps • Solution configuration (processes, workflows, metrics) 26

Implementation “How do we deploy the new technology-enabled processes to achieve desired strategic outcomes? ” Now, the real work begins… • Development of initial reporting, dashboards and analytics • Conversion of current and historical data (how much history? ) • System testing – component, process system, UAT • User training & change management • Ongoing communication and internal marketing • Transition to live production and stabilization © 2012, HRchitect, Inc. 27

Implementation • Pursue a “chunking” strategy with a 3 -5 year roadmap that starts with biggest pain points • Project teams almost always underestimate integration / interoperability issues o Third party providers o Niche applications o Applications within the enterprise • Firms chronically under-invest in: o Internal marketing/communication o Rollout o Change management project • Utilize dedicated resources if possible • Get senior management support over project life © 2012, HRchitect, Inc. 28

Sustainability “How do we maintain and evolve the solution to adapt to changing business and HR needs? ” • Even though the solution is “live, ” your business is not standing still • Plan and budget for the evolution of the solution on a regular basis • Continue a regular program to market the solution • Regularly update senior management on progress • Build stakeholder feedback into the apps roadmap • Remember the governance model! © 2012, HRchitect, Inc. 29

Final Thoughts • The current business environment combined with worker intentions will likely stress existing talent management processes • Many first generation talent management implementations have fallen short due to a lack of a cohesive, aligned strategy © 2012, HRchitect, Inc. 30

Final Thoughts • Take the time to build an ITM initiative according to the seven step methodology, focusing on philosophy, strategy and science first – with metrics!! • Technology is a critical enabler…with the right focus on functional integration points and user experience © 2012, HRchitect, Inc. 31

Q&A/ Comments Ron Hanscome VP HCM Systems Strategy HRchitect Office: 763 -383 -2933 E-mail: rhanscome@hrchitect. com Blog: www. puzzlingworldofhrtechnology. com Twitter: @ronhanscome © 2012, HRchitect, Inc. 32