Integrated Talent Management and How to Get There

Integrated Talent Management and How to Get There HR. com Webinar October 16, 2012

About Andy Rice, Principal and Lead Strategist of Black Box Consulting, has played an instrumental role in the success of key clients, working with Fortune 500 companies on critical initiatives including integrated talent management planning and assessment projects, talent management optimizations, technology selections and implementations, change management efforts and talent management transformation programs. Prior to establishing Black Box Consulting, Mr. Rice developed an extensive background in business process management, talent management and human resources. He held roles as Practice Manager for Integrated Talent Management and Principal Consultant at the Newman Group (a division of Korn/Ferry International), Senior Project Manager at Yahoo! Resumix, Staffing Director at Genentech, and Regional HR Director of Viant, a global internet and business consulting company. He also has an extensive background in talent acquisition, learning and development, performance management, leadership development, succession planning, compensation and workforce planning. Principal / Lead Strategist Black Box Consulting San Francisco, CA andy. rice@blackbox-consulting. com 2 Mr. Rice has facilitated speaking engagements and workshops on talent management for organizations such as the Human Capital Institute, the Conference Board, IHRIM, Argyle Executive Forum, the Electronic Recruiting Exchange, HRMAC, ASTD, HR. com and IHR. Mr. Rice graduated with a BS in Electrical Engineering and Computer Science from the University of California at Berkeley, and spent the first five years after graduating as an engineer and engineering manager at Intel. Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Agenda • • • 3 Why Integrated Talent Management? Why is integrating Talent Management so difficult? What is the Black Box? How do companies use the Black Box? What are your questions? Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Why Integrated Talent Management?

Traditional Talent Management 5 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Integrated Talent Management Strategy Process Corporate Strategy Talent Strategy & Workforce Plan Talent Acquisition Learning & Development Succession Planning Compensation Performance Management Leadership Development Language Competency Model Scalability Technology Enablement Transformation Change Management Awareness – Acceptance – Adoption 6 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Integrated Talent Management What it looks like: WFP Technology TA L&D Competencies PM LD SP 7 Comp • Workforce Planning linked to Business Planning • Disciplines execute processes in accordance with Workforce Plan • Processes are coordinated through inputs and outputs • Technology enables link to strategy and data sharing • Competencies are the common talent language • Business has the right talent to meet the short- and long-term business objectives Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Why Integrate Talent Management? Source: Aberdeen, Integrated Talent Management: Improving Business Results through Visibility and Alignment, 2009 8 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Why Integrate Talent Management? Source: Aberdeen, Integrated Talent Management: Improving Business Results through Visibility and Alignment, 2009 9 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Why Integrate Talent Management? Source: Aberdeen, Integrated Talent Management: Improving Business Results through Visibility and Alignment, 2009 10 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Why Integrate Talent Management? Source: Bersin & Associates, 2010 Talent Management Factbook 11 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Why Integrate Talent Management? Source: Bersin & Associates, 2010 Talent Management Factbook 12 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Why Integrate Talent Management? Source: Bersin & Associates, 2008 Talent Management Factbook 13 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Poll • What level of ITM maturity best represents your company? (single select) – – 14 Level 1: Siloed Talent Processes Level 2: Standardized Talent Processes Level 3: Integrated Talent Management Level 4: Strategy-Driven Integrated Talent Management Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Example: ITM – Before & After Before After Uninformed Workforce Information: On March 15 th, Jane, a Manufacturing Site Manager says her plant is fully staffed, not realizing that the business strategy dictates a change in production schedule requiring additional staff. Forecast-Driven: As an output of Business Planning / Workforce Planning, the Talent Acquisition, Learning & Development and Succession Planning teams receive a forecast at the beginning of the year. “Surprise” Short-Notice Recruitment Requests: On March 22 nd, Jane calls her recruiter and says she needs to hire 100 people by April 15 th. Pro-active Internal / External Sourcing: The forecast indicates two scenarios of either “no hiring” or the “need to hire 100 people at this plant. ” All three teams begin to identify talent for this need on January 1. Reactive, Behind-Schedule External Recruitment: The recruiter scrambles to initiate hiring as rapidly as possible based on this unforeseen need; as a result, Jane’s plant is not fully staffed for six months. On-time Responsiveness / Talent Results: When the call comes in on March 22 nd, internal and external talent has already been identified to meet the need. 15 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Example: ITM – Before & After Before After Compliance-Driven Development Planning: John has just started as a new employee. Two weeks after starting, his manager Nancy meets with him and says “HR requires us to have a development plan for all employees, so what do you think you should have on your development plan? ” Value-Added Development Planning: At two weeks into John’s employment, Nancy sits down with John and says, “Looking at your current job description, here are the competencies required for your role. During your hiring process, we assessed that you are very proficient in communication and leadership skills, but may need some development in managing work through others. ” Lack of Support for Employee Development: John isn’t really sure what to put on his plan, so they agree that he should review the paper-based catalog of courses and add classes of interest to John’s development plan. Manager- and System-Supported Employee Development: “Our development planning system is suggesting we send you to a class to help you in this area, and set you up with a mentor who is very proficient in this skill. Can we add this to your development plan? ” John agrees, and feels very positively about the company and Nancy’s support for his development. 16 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Why is integrating Talent Management so difficult?

Integration Challenges – Strategy • Integration Focus: One TM project at a time, without a meaningful view of the whole • Continuity: Projects start and stop • Consistency: Some areas integrate with others, while others fall behind • Purpose: Funding often goes to the squeakiest wheel • Sustainability: Not a sustainable approach 18 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Integration Challenges - Execution • Complexity: High level of complexity • Dependencies: Difficult to design dependent processes • Ownership: Owners of processes are organizationally separate • Technology: Technology requirements for integration are unclear • Expertise: Lack of individual with broad expertise across Talent Management 19 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

What is the Black Box?

Black Box Analysis • Purpose – To develop a “schematic” of the “architecture” of the Integrated Talent Management “system” • Objectives – To create a high-level picture of the future state interaction between all Talent Management disciplines – To define the future state inputs, outputs and assumptions of each Talent Management discipline – To develop the framework for the future state process development in each Talent Management discipline 21 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Black Box Analysis: Overview Complex System Black Box #1 • Objectives • Activity #1 • Activity #2 • Activity #3 Black Box #2 • Objectives • Activity #1 • Activity #2 • Activity #3 22 Black Box #5 • Objectives • Activity #1 • Activity #2 • Activity #3 Black Box #3 • Objectives • Activity #1 • Activity #2 • Activity #3 Black Box #4 • Objectives • Activity #1 • Activity #2 • Activity #3 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Black Box Analysis Process • For each Talent Management discipline, determine: – The objectives and high-level activities of that discipline – The inputs required to meet the objectives of that discipline • If possible, the supplier of each input – The outputs produced by each discipline • If possible, the consumer of each output – The assumptions required to meet that discipline’s objectives Supplier Inputs TM Discipline #1 • Objectives • Activity #1 • Activity #2 • Activity #3 Outputs Assumptions 23 Copyright © 2012. Black Box Consulting, Inc. All rights reserved. Consumer

Sample: TM Design Specification 24 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Black Box Analysis: ITM Schematic 25 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Black Box Analysis: ITM Schematic 26 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Poll • What level of ITM maturity best represents your company? (single select) – – 27 Level 1: Siloed Talent Processes Level 2: Standardized Talent Processes Level 3: Integrated Talent Management Level 4: Strategy-Driven Integrated Talent Management Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

How do companies use the Black Box?

ITM Business Planning: Phase 1 Talent Strategy Alignment Project Kickoff and Chartering Talent Strategy Alignment Talent Management Discipline Review Purpose • To begin the project with documented agreement within the project team Purpose • To review the key talent implications associated with corporate strategies and goals • To develop talent strategies / philosophies to meet business strategies Purpose • To review of the disciplines required to meet the talent strategies and identify the objectives required in each discipline to meet the talent strategies • To assess and document discipline priorities and barriers to success Week 1 29 Weeks 1 -4 Copyright © 2012. Black Box Consulting, Inc. All rights reserved. Weeks 1 -4

ITM Business Planning: Phase 2 ITM Design and Roadmap Development ITM Black Box Analysis ITM Gap Analysis ITM Roadmap Development Purpose • To define the futurestate for each ITM discipline o Objectives o Activities o Inputs o Outputs o Assumptions • To develop a “schematic” of the “architecture” of the Integrated Talent Management “system” Purpose • To identify future-state process, technology, organizational requirements through current state review • To assess the readiness of each ITM discipline relative to the future state of: o Technology o Process o Organization Purpose • To develop and prioritize a multi-year ITM project roadmap Weeks 5 -8 30 Weeks 9 -14 Copyright © 2012. Black Box Consulting, Inc. All rights reserved. Week 15

SAMPLE: Maturity Matrix 31 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

SAMPLE: TM Maturity Map General Notes: • Workforce Planning is a significant foundational area for improvement • Technology platforms need improvement to support an integrated function • Performance Management process improvements are required to increase return • Process maturity is acceptable in many areas, but process improvement areas exist • Lack of consistent competency model skews above results towards red • Root causes of data integrity issues need to be addressed for future state success 32 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

SAMPLE: ITM Project Roadmap Year 1 Year 2 Competency Model Development HR Data Optimization Year 3 LMS Technology Implementation Comp System Implementation Competency-Based Job Descriptions TM Platform Evaluation Career Ladder Structure Leadership / Mgmt. Assessment Integrated Total Comp Focal Process Rollout TA Technology Implementation Global Student Programs Workforce Planning Pilot Workforce Planning Launch SP System Implementation Perf. Mgmt. Process Redesign SP Process Dev / Rollout Candidate Assessment Process Leadership Development Curriculum Performance Management System Implementation 33 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

Insights for Leadership and Planning • Key Benefits of Black Box Approach – Combines “big picture” perspective and functional detail – Drives both immediate activity and long-term strategy – Allows for design of each process while meeting the integration needs of the system – Creates practical direction and prioritization for all ITM activities • Key Considerations – – 34 Importance of “Big Picture” thinking Importance of innovative thinking Aggressive timeline helps drive results Balance perfection w/ timeline / progress Copyright © 2012. Black Box Consulting, Inc. All rights reserved.

About Black Box Consulting helps companies large and small maximize the business return of their talent management functions. We can help you: • Link your talent management operations to business strategy • Develop a plan to integrate your talent management function and to manage your talent management transformation program • Optimize your talent management processes, use of technology, and organizational model • Select, implement and launch your talent management technology For more information, contact Andy Rice, Principal and Lead Strategist, at andy. rice@blackbox-consulting. com or (415) 254 -5831 35 Copyright © 2012. Black Box Consulting, Inc. All rights reserved.