linking competency management to talent development.ppt · linking competency management to talent...

Linking Competency Management to Talent DevelopmentTalent Development

Danny Lee Senior Consultant Hewitt Leadership Consulting

To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.

Senior Consultant, Hewitt Leadership Consulting

The Region Is Poised for Explosive Long Term Growth

GDP i US$ T ($ billi ) “Destiny” Period -GDP in US$ Terms ($ billion)

50000

Destiny Period -2035 and beyond

40000China

“Pull Away”

20000

30000

USA India“Emerging” Period - now to

2015

Period -2015 - 2035

10000Japan

2015

02000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Year

GermanyUK

Source: BRIC Report Goldman Sachs 2003

2

Source: BRIC Report, Goldman Sachs, 2003

Asia will lead the world…but who will ‘lead’ Asia Inc.?

20-29 30-39 40-49 50 + yr.

Working Age Population Change in Asia (2000 -2010) Working Age Population Change in Asia (2000 -2010)

Only 25% of companies say they are ff ti t d l i l d

… companies are struggling to excel to manage a scarce pool of talent

38%

yr. olds yr. olds yr. olds olds effective at developing leaders

The percentage of 35 to 44 year olds will decline 15% from 2000 to 2015, while competition for top talent will increase

2%6%

Three-quarters of corporate officers surveyed stated that their companies had “insufficient leadership talent sometimes” or were chronically talent short across the

-23%

yboard”

More than 60% of companies don’t identify high potential leaders

Source: Hewitt Associates, United Nations, Top Companies for Leaders Study

Barely half of those companies identifying high potential leaders provided them with meaningful developmental opportunities

3

An Increasingly ‘Global’ World

The War for Talent is no longer localised…it is becoming globale a o a e t s o o ge oca sed t s beco g g oba

Virtual

Global

ZATI

ON

Multinational

Global

OF

GLO

BALI

Z

International

Multinational

DEG

REE

O

Domestic Export

4TIME

63% of Best Employers and 77% of The Rest confirming that they are experiencing a

Escalating talent shortages

63% o est p oye s a d % o e est co g t at t ey a e e pe e c g ashortage of talent.

Skills shortage across all participants

72%80%

100%

41%27% 22%

40%

60%

22% 17% 17%

0%

20%

Specialist Leadership Project Relationship IT and General

Leadership is one of the most critical capabilities, and it’s in short supply…Leadership is one of the most critical capabilities, and it’s in short supply…

pTechnical Skills

p jManagement

pManagement e’skills Technical

Skills

5

p p , pp yp p , pp y

Best Employers in Asia 2007

‘Best Employers’ have clear talent management strategies that include the following imperatives:

Powerful leadership and talent strategy;

CEO ownership of talent and leadership development;CEO ownership of talent and leadership development;

Robust performance and competency assessment leading to l i dtalent segmentation; and

Compelling development practices and processes

6

Best Employers in Asia 2007

Rank Market Organization Name1 China Spansion (China) Ltd.2 China Three On the Bund3 Hong Kong The Ritz-Carlton, Hong Kongg g , g g4 China Shangri-La’s Kerry Centre Hotel Beijing5 Singapore Four Seasons Hotel Singapore

6 Australia & New Zealand SalesForce 7 India Marriott Hotels India7 India Marriott Hotels India8 Korea SK Telecom Co., Ltd.9 China Four Seasons Hotel Shanghai10 China Nanfang Lee Kum Kee Co., Ltd.11 Singapore The Ritz-Carlton, Millenia Singapore12 India Satyam Computer Services Limited13 Japan UBS Securities Japan Ltd.14 Australia & New Zealand SEEK Limited15 China Renaissance Beijing Hotel16 India Aditya Birla Group 17 Australia & New Zealand Cisco Systems18 Singapore Raffles Hotels & Resorts

7

18 Singapore Raffles Hotels & Resorts19 Australia & New Zealand Novartis Consumer Health Australasia20 India Domino's Pizza India Limited

Top Company For Leaders, 2002-2007

The Three Leadership Truths that hold true in Asia Pacific:

S i t i l t d tSenior team involvement and support

Having a maniacal focus on talentHaving a maniacal focus on talent

Having the right programs in place and executing themHaving the right programs in place and executing them effectively

8

TCFL is conducted in partnership between HEWITT, FORTUNE, RBL

Top Company For Leaders, 2007

9

TCFL is conducted in partnership between HEWITT, FORTUNE, RBL

LINKING COMPETENCY MANAGEMENT TO TALENT DEVELOPMENTTALENT DEVELOPMENT

10

Linking Competency Management to Talent Development

Business Strategy Defines Competencies

Business Strategy

Competency Development

Robust Competency Assessment

Performance Management Segmentation

Data

T l t

Developed Talent Drives Business Strategy Talent

DevelopmentStrategy

11

Source: Hewitt Associates - Best Employers in Asia

Business Strategy


Robust Capability

Assessment

Performance Management

Segmentation

Talent Development


Talent Drives Business Strategy

COMPETENCY MANAGEMENTCOMPETENCY MANAGEMENT

12

Develop a mental picture of the type of Leader you want for your

Short Mental Activity… Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



Develop a mental picture of the type of Leader you want for your organisation….

What are the leaders’ characteristics or competencies?Why these characteristics?From where did you get ideas of these characteristics?

Leadership Books?Leadership Books? Your own idea of a good leader? From what other organisations tell you how a good leader should be?Do these characteristics really meet the people and business strategy of your y p p gy yorganisation?

How did your organisation come up with its current competency model?

13

The Hewitt Leadership Strategy Matrix

Business Strategy Defines Competencies….

Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



Transformational Change

Business Strategy Defines Competencies….

Leadership behaviours related to:Vision, Speed, Aggressiveness, Risk-taking, Managing Change, Driving Sales

Leadership behaviours related to:Vision, Decision-making, FinancialAcumen, Managing Change, Risk

GrowthReturn

Management, Cost Control

Leadership behaviours related to:Speed, Aggressiveness, ProcessM t Ri k t ki Pl i

Leadership behaviours related to:Risk Management, Process Management,Financial Acumen Cost Control Rule Management, Risk-taking, Planning,

Task FocusFinancial Acumen, Cost Control, RuleOrientation, Task Focus

T i l Ch

14

Transactional Change

Leadership Pipeline

Leadership Passage Further Refine Competencies….

Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



Each numbered turn represents a transition between each of the leadership levelsGROUP / ENTERPRISEn

Leadership Passage Further Refine Competencies….

leadership levels

Each turn is about developing new capability and letting go of previously held

BUSINESS

GROUP / ENTERPRISE

enta

tion

4

5

of previously held responsibilities

Leaders must create mastery at one level before transitioning to

FUNCTION

p S

egm

3

4

gthe next (or they are more likely to de-rail later in their careers)

All individual leaders will be at OTHERS

MANAGERS

ader

ship

2

one of the leadership levels or transitions

SELF

Lea

1

15

Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



ASSESSMENTASSESSMENT

Robust and effective assessment accurately predictsaccurately predicts whoRobust and effective assessment accurately predictsaccurately predicts who will be strong and weak performers…..

16

Why Assess? Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



People vary in their performance and potential considerably and identifying

In the Pan Pacific Region, it’s more important than ever to get selection and assessment right

People vary in their performance and potential considerably, and identifying and acting upon these differences can greatly impact on your business results

Robust and effective assessment accurately predicts who will be strong and weak performers

By acting on assessment results, you can significantly improve individual awareness and capability and consequently business performance

Getting the BEST people for the role results in fiscal savings for your organization

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What Method? Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



ASSESSMENT METHOD

P f t di ti

r r = Criterion validity correlation with job

fPerfect predictionAssessment/Development Centers

W k Si l ti

1.00

0.65

0 54

performance

Work Simulations

Ability Tests

Assessment Centers (recruitment)

0.54

0.53

0.50

Interviews (structured, e.g. BEI)

Personality Questionnaires

Bio-data

0.43

0.39

0.38 Bio data

References

Interviews (unstructured biographical)

0.23

0.19

18

Source: Robertson 2001, adapted from Schmidt & Hunter

Tools Competency Matrix

Increasing Objectivity of Assessment Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



Exercise/

Tools Direct Report Strategic Behavioral

Tools-Competency Matrix

CompetenciesMeeting Presentation

to BossEvent Interview

Strategic Visioning √ √B i A √ √ √Business Acumen √ √ √People Development √ √Collaboration and Networking √ √ √Collaboration and Networking √ √ √Customer Focused √ √ √Results Oriented √ √Innovative Thinking √ √ √Managing Change √ √

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Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



SEGMENTATIONSEGMENTATION

People vary in their performance and potential considerably, andPeople vary in their performance and potential considerably, and identifying and acting upon these differences can greatly impact on your business results…..

20

Segmentation: Talent Grid Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



No. Participant Name

egic

Visio

ning

epre

neur

ship

erag

ing T

alent

eamw

ork &

oll

abor

ation

tomer

Cen

tric

ults F

ocus

ed

vativ

e Thin

king

aging

chan

ge

Average

Stra

te

Entre

Leve Te Co

Cust

Res

Inno v

Mana

Outstanding Potentials (Groom for next level)1 Talent # 1 4.00 4.00 4.00 3.50 3.50 3.50 3.50 3.50 3.692 Talent # 2 3.50 3.00 3.00 3.50 3.50 3.00 3.50 3.50 3.313 Talent # 3 3 00 3 00 3 00 3 00 3 50 3 00 3 50 3 00 3 133 Talent # 3 3.00 3.00 3.00 3.00 3.50 3.00 3.50 3.00 3.13

AVERAGE 3.50 3.33 3.33 3.33 3.50 3.17 3.50 3.33High Potentials (Develop identified competencies)

4 Talent # 4 2.50 3.50 3.50 2.00 1.50 3.00 3.00 2.50 2.695 Talent # 5 2.50 3.00 2.00 2.50 2.00 2.50 3.00 3.00 2.566 Talent # 6 2.50 3.00 2.00 2.50 2.00 2.50 2.50 2.50 2.44

T l t # 77 Talent # 7 2.50 2.50 2.00 3.00 2.00 2.00 2.50 2.50 2.388 Talent # 8 3.00 3.00 2.00 2.00 1.50 2.00 2.50 2.50 2.319 Talent # 9 2.00 2.50 2.00 2.50 2.50 2.00 2.50 2.50 2.31

10 Talent # 10 2.00 2.00 2.00 3.00 2.50 1.50 2.50 2.50 2.25AVERAGE 2.43 2.79 2.21 2.50 2.00 2.21 2.64 2.57

Others (Significant development required)11 Talent # 11 2.00 2.50 2.00 2.00 1.50 2.00 2.50 2.00 2.0612 Talent # 12 2.50 2.00 2.00 2.50 1.50 1.50 2.00 2.00 2.0013 Talent # 13 2.00 2.00 2.00 2.00 1.50 2.00 2.00 2.00 1.9414 Talent # 14 2.00 2.00 2.50 1.50 1.50 1.50 2.00 2.00 1.88

AVERAGE 2.13 2.13 2.13 2.00 1.50 1.75 2.13 2.00

Others (Significant development required)

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Exceeds ExpectationsMeets ExpectationsNeeds DevelopmentConsider alternatives to a leadership path

Segmentation Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



Issue5-10%

CAPABILITY OR POTENTIAL

Well-Placed45-55%

Expandable25-35%

High Potential5-10%

DistinguishedPerformer5-10% Group I

(High Performing ExceptionalPGroup II

(High Performing ModerateExcellentPerformer25-30%

(High Performing Exceptional Leader)

P E RFO

(High Performing Moderate Leader)

SolidPerformer45-55% Group III

(Moderately Performing Exceptional Leader)

RMANC

Group IV(Moderately Performing Moderate

NeedsImprovement10-15%

Exceptional Leader)CE Leader)

22

Different development Program for different segment

Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



TALENT DEVELOPMENTTALENT DEVELOPMENT

23

Developing Leaders is about being purposeful Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



“Leaders aren’t born, they are made. And they are made just like anything

l th h h d k ”else, through hard work.”

Vince LombardiOne of American football’s most successful coaches

24

Top Companies For Leaders Consistently Outperform the S&P 500

The Top Companies for Leaders all have two things in common: The first is outstandingThe Top Companies for Leaders all have two things in common: The first is outstanding year-over-year financial performance; and, the second, is a single-minded focus

and commitment of resources to developing leaders and high potentials at all levels.

Total Shareholder ReturnTotal Shareholder Return

200

2503M CompanyGE

100

150Johnson & JohnsonDellLiz ClaiborneIBM

0

50

IndexValue =

2002 2003 2004 2005 2006

Procter & GambleGeneral MillsMedtronicAmerican Express

“Processes, systems, & technology can all be replicated, but leadership & talent is where true competitive advantage lies” John Rice, Vice Chairman of

Value 100

S&P 500

25

p g ,General Electric Company, 2007

Top Companies Have The “Right” Leadership Development Practices

Performance management, goal setting and reward

Global bench strength with the capability to d li b i

Effective leadership talent development processesstart with a solid foundation. Value added leadership

talent development processes realize business strategy, talent attraction, engagement and retention.

Value

setting, and reward strategies aligned to

strategic plan

deliver on business strategy

Established well- Global geographic

g g

communicated leadership brand,

clear leadership promise

Global, geographic, business unit and cross functional

mobility

Competency framework and future leader

Formal succession planning process

cascaded

Foundation

future leader success profiles throughout org

Leadership development

Clear sourcing

26

development program &

transparent career management process

strategies for leadership and key

talent

Business leaders and managers need to own leadership and key talent development activities. HR should

provide the tools and processes and facilitate.

Top Companies Have a Maniacal Focus on Capability Development

Percentage of Top Companies using the following approaches to development.

27

Source: Hewitt Associates. 2005. Top 20 Companies for Leaders Research Report.

Our Points of View on Leadership Development Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



Self awareness is key - being open and willing to developing oneself is an enabler to the process

Leader behaviours can be shaped, but personality essentially ‘cannot’ be changedLeader behaviours can be shaped, but personality essentially cannot be changed

Emotional intelligence can be developed to improve leader effectiveness.

Leadership behaviours do not change overnight—incremental change is more the reality;

Organizations require supporting systems and processes to reinforce behaviour change that are specific to each organization;

Important to focus on building and developing leader strengths, rather than to focus on developing weaknesses.

Leaders must be held accountable for developing othersLeaders must be held accountable for developing others

Essential to measure and re-measure impact of leadership development interventions to ensure true return on

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Experiential and action learning are key to development program design and delivery to maximize learning

Leadership Development Program

Developing a High Performing Leadership Team

Business Strategy


Robust Capability

Assessment


Segmentation

Talent Development



Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008

PRE Development Performance

POST Development Performance

p g g g p

Leaders

Performance Culture Audit Culture Audit

Orientation to HPW

External Coaching for GM / Internal Coaching for SM

LeadersStrategic Visioning

Leveraging Talent

Managing change

TeamworkCollaboration

Experiential Workshop

HR

HR Scan(practices & processes)

Role of HR(Sustaining Change

On The Job)

HR Monitoring(Implement Learning)

Hewitt

- On The Job)

Workshop Design /

Learning Implementation - Follow Up

29

p gInternal Training

Common Pitfalls in Talent Development

Lack support and ownership from the ‘top’ (CEO and the Board)

Misaligned competencies to drive business strategy

Assessment lack robustness that lead to inaccurate talentAssessment lack robustness that lead to inaccurate talent identification

F t d O hi f T l t M tFragmented Ownership of Talent Management

Poor execution of development program

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HR Often Has Difficulty Managing Leadership and Key Talent Development Because Ownership is Fragmented

HR Business Partners

Compensation &BenefitsOD/LeadershipLearningRecruitment

Talent Supply

• Workforce planning

• Interviewing

• Market Pay Levels

• Evaluation Tools• Competencies

• Skill Gaps• On-boarding and

Orientation

• Sourcing• Screening• External Vendor

Management

High Performance

• Deployment• Mobility• Leadership

Engagement

• Executive Rewards

• Pay Branding

• Leadership Development

• Succession Planning

• Skill Development

• Sourcing

Leadership & KeyTalent Capabilities

• Team Building

• Goal Setting

• Pay Differentiation

• Incentive Programs

• Gap Assessment• Performance

Coaching

• Skill Development

• Managerial Capability

EmploymentRelationship

• Employee Relations

• HR Policies

• Benefits Design• Base Pay

Positioning

• Employee Surveys

• Employment Brand

• Career Development

• Training

• Brand Communication

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Brand

It’s all about Execution

“Less than 10% of strategies geffectively formulated are

effectively executed”Fortune

“In the majority of failures - we estimate 70% - the real problem p

isn’t bad strategy. It’s bad execution”

Fortune

32

Fortune

Leadership ConsultingTransforming Leaders and Business

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linking competency management to talent development.ppt · linking competency management to talent...

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