TALENT MANAGEMENT A LINK TO BUSINESS STRATEGY
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1 TALENT MANAGEMENT A LINK TO BUSINESS STRATEGY
2 Lets talk strategy Lets talk Value Creation/ Value Drivers 2
3 The Key Question????? What are the key value drivers/ thematic areas in our organizations? What is the Vision, Mission, Values of our organizations? What is the Strategic Outlook for HR in our organizations 3
4 Strategy: a focused approach to getting where you want to be Where we want to be Where we are now Strategic path Path without strategy 4
5 Strategy is about fit. Strategy is not just about grand themes. A strategic positioning requires a tailored set of activities to make it work. Competitive advantage comes from the way the firm s activities fit together, reinforce one another, and optimise effort. Choose a unique set of activities that build distinctive strengths, competencies, resources Use these activities to create a unique customer or product/service position Build fit: an integrated system of reinforcing activities that optimise overall efforts, not a collection of parts Provide leadership that communicates the firm s distinctiveness, resists blurring the strategy Activities Product Position Economic Value Leadership Fit 5
6 To be effective, an organization's activities must be aligned with its strategy A misaligned organisation without a strategic plan Organisation Environment An organisation that has a strategic plan but does not have its members aligned with the plan Environment An organisation that has both a strategic plan and its members aligned with the plan Environment 6
7 The four barriers to strategic implementation The People Barrier Only 25% of managers have incentives linked to strategy The Vision Barrier Only 5% of the work force understands the strategy 9 of 10 companies fail to execute strategy The Management Barrier 85% of executive teams spend less than one hour per month discussing strategy 60% of organisation don t link budgets to strategy * Kaplan and Norton - The Strategy-Focused Organisation. The Resource Barrier 7
8 Action Planning - translating business strategy into achievement Communicate strategic direction Vision Strategy Leadership process Communicate organization response Organization Execution Results Management process 8
9 Put a scorecard at the heart of execution Translating the vision Communicating and rewarding Balanced Scorecard Feedback and Learning Business Planning 9
10 SYSTEMS STYLE CORPORATE STRATEGY SHARED MINDSET STRUCTURE CORE SKILLS SERVICE LEVELS 10
11 Value analysis can help link strategy to value creation Establish a performance culture Align people with strategy Focus and develop performance People performance management processes Strategy Performance measures and targets Information management and reporting Required actions & behaviours Value Enterprise performance management processes Plan and budget Forecast Initiate corrective action 11
12 The 7S HR Strategy Framework Winning Formula Supporting Areas STRUCTURE STRATEGY SKILLS STAFF STYLE SHARED VALUES SYSTEMS 12
13 Leading Strategic Change- HR concept The 7S Framework helps to trigger integrated thinking through the strategic Human Resource Management issues that will support and enable the organization strategy The linkages are: 13
14 Key concepts. Strategy Skills A coherent set of actions aimed at gaining a sustainable competitive advantage Those capabilities possessed by the organization as a whole Shared Values The values that determine the culture of the organization 14
15 Key concepts.. Staff The people, their strengths and potential capabilities Systems Style The technical systems available in the organization The way that management behaves, and their leadership practises Structure The decision making links and authority levels 15
16 The Three phases of strategy Analysis Formulation Implementation 16
17 BUSINESS STRATEGY Internal Environment External Environment Overall HR Strategy Resourcing Strategy HR Intellectual Development Strategy Reward Strategy Employee Relations strategy 17
18 Preconditions for making HR strategy pay off 1. A clear business strategy 2. Leadership committed to developing people 3. Resources are allocated 4. Hygiene factors are addressed 5. People are motivated 6. HR systems and processes that add value 18
19 HR strategic Internal outputs Management style Culture, a common mindset Staff retention Morale Communications Intellectual capital development Appetite for growth/ change/innovation Individual performance and continued evidence of excellence 19
20 Organisational development is about more than just structure Structure Accountability and Decision Making Roles and Responsibilities Work Group Design Job Design Performance Measures Skills & Behaviour Development 20
21 Talent management defined It s mission critical process that ensures that organizations have the right quality and quantity of people to meet their current and future business needs.
22 The strategic impact of Talent Management is shown as follows
23 Business strategy Business environment Critical success factors Organizational capability Management capability Business performance
24 Key Components of an effective Talent Management Process 1. A clear understanding of the organization s current and future business strategies. 2. Identification of the key gaps between the talent in place and the talent required to drive business success. 3. A sound talent management plan designed to close the talent gaps. It should also be integrated with strategic and business plans 4. Accurate hiring and promotion decisions.
25 Components cont. 5. Connection of individual and team goals to corporate goals, and providing clear expectations and feedback to manage performance. 6. Development of talent to enhance performance in current positions as well as readiness for transition to the next level. 7. A focus not just on the talent strategy itself, but the elements required for successful execution. 8. Business impact and workforce effectiveness measurement during and after implementation.
26 Why is there an emphasis on talent Management 1. There is a demonstrated relationship between better talent and better business performance. 2. Talent is a rapidly increasing source of value creation. 3. The context in which we do business is more complex and dynamic. 4. Boards and financial markets are expecting more 5. Employee expectations are also changing. 6. Workforce demographics are evolving. Organizations wage a new war for talent.
27 Talent Management-Best Practice Best Practice #1: Start with the end in mind talent strategy must be tightly aligned with business strategy. Best Practice #2: Talent management professionals need to move from a seat at the table to setting the table. HR needs to take full responsibility of the process Best Practice #3: You must know what you re looking for the role of Success Profiles
28 Best Practice cont. Best Practice #4: The talent pipeline is only as strong as its weakest link. Best Practice #5: Talent Management is not a democracy. Best Practice #6: Potential, performance and readiness are not the same thing Best Practice #7: Talent management is all about putting the right people in the right jobs
29 Best Practice #8: Talent management is more about the hows than the whats. The five realization factors for sound execution are: 1. Accountability Role clarity so that each individual in the talent management initiative knows what is expected of them. 2. Skill Developing the right skills and providing coaches and mentors for support. 3. Alignment Must align talent management initiatives to the business drivers but also need the right kinds of systems to identify high potentials, to diagnose for development, to link to performance management, and to do development that really changes behavior. 4. Measurement You can t manage what you don t measure. It creates the tension, and objectives become clearer to help execute a talent strategy. The most effective measurements go beyond mere statistics
30 Best Practice #9: Software does not equal talent management. Software(HRIS) should support the process, but it can t stand alone.
31 Talent Strategy- The Key Steps Step 1: The Business Landscape Define the strategic priorities Define the Cultural priorities The define the Business drivers
32 Talent Strategy cont.. Step 2: Talent Implications Workforce diversifications Capacity Projections Capacity Gaps Organization development
33 Talent Strategy cont Step 3: Growth Engines(Success Profiles) Selection process Development plans Performance management Succession management
34 Talent Strategy cont Step 4:Outcomes Workforce performance Business impact
35 THE VALUE OF PLANNING Talent management has never been more of an immediate concern than it is right now. But in the rush to fill a perceived talent management void, organizations must be careful not to rush into implementing initiatives or programs that are more about taking action than about implementing a well-crafted solution. Careful planning, culminating in a sound talent strategy that is tightly connected to the organization s overall business strategies and business needs, is required for talent management to become ingrained in an organization s culture and practices. Only when this happens is it possible for talent management to be both effective and sustainable.
36 Talent Management Systems Approach Planning for Talent Recruitment Acquiring Talent Developing Talent Managing Talent Retaining Talent
37 Four Pillars of Talent Management 1. recruitment; 2. performance management; 3. learning and development; 4. compensation management
38 Succession Planning & Leadership development
39 Succession Planning & Leadership Development-5 Rules Rule no 1: Focus on development Succession management must be a flexible system whose orientation is towards development activities, and not a list of high potential employees and the slots they might fill Pay attention to skills for higher roles and an educational system that will help managers develop those skills
40 Succession Planning & Leadership Rule Two: Identify Linchpin Positions Development-5 Rules Whereas the plan generally focuses on a few positions at the very top, leadership development will begin at middle management Collapsing the two functions into a single system allows organizations to take a long term view of the process of preparing managers into higher roles Linchpin positions are those jobs that are essential to the long term health of the organization The purpose is to identify a pool of possible successors rather a few leading contenders Use a matrix to identify a manager s key strengths and weaknesses
41 Succession Planning & Leadership Rule Three: Make it Transparent Avoid shrouding it in secrecy Development-5 Rules Employees are often the best source of their potential and if the know the skills gap in themselves, they will do what it takes to improve-because its in their interest to grow To achieve transparency, you need systems that are simple and easy to use with immediate but secure access for participants Use of a web-enabled system is highly recommended
42 Succession Planning & Leadership Development-5 Rules Rule Four: Measure Progress Regularly An organization must know whether the right people are moving at the right pace into jobs at the right time Companies also need to know who is where and which jobs they are being groomed for to avoid stretching the candidate pool too thin One telling test of a good succession management system is the extent to which an organization can fill important positions with internal candidates For positions at the director level and above, a good system should show the current employee as well as three potential successors
43 Succession Planning & Leadership Development-5 Rules Rule Five: Keep it Flexible Best practice organizations follow the notion of kaizen or continuous improvement in both processes and content Succession management systems are effective only when they respond to users needs and when the tools and processes are easy to use and provide reliable and current information
44 Q & A Session THANK YOU 44
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