Are Your Company’s Talent Management Practices Optimized to Address the Future Changing Needs of Your Business?

People – Process –Technology – Strategy - Compliance

Expert Panel Discussion / Presentation

The Chicagoland Chamber of Commerce

January, 25, 2012

Introductions• George Langlois, PhD

▫ President of Organizational Strategies Inc.▫ Director of the Center for Research and Services at

IIT▫ 25 years experience in organizational

effectiveness, executive assessment and talent management systems

• Lori Muehling, PhD, RODC▫ Director of Talent Management & Organizational

Development at Exelon Generation ▫ 25 years organization development, talent

management and human resources experience

• Carl Kutsmode▫ Partner at talentRISE LLC▫ 20 years recruiting and talent operations

management consulting experience

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Panel Discussion OverviewTalent Management Trends & Leading Practices: What key

components make up the talent management system of top performing companies?

• George M. Langlois, Ph.D., President, Organizational Strategies, Inc. and Senior Consultant to talentRISE

Talent Management Critical Review Business Case - What are the practical considerations to consider when reviewing and revising your talent management practices?

• Lori Muehling, Ph.D., RODC, Director of Talent Management & Organization Development, Exelon Generation

Optimizing Your Talent Decisions – How top performing companies who optimize their talent management practices are able to make informed talent decisions that ensure future business performance goals are met?

• Carl Kutsmode, Managing Partner, talentRISE

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Talent Management Trends & Leading Practices

Framework

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Future Trends: Changes in Overall Talent Mgmt CEO Priorities in 2011/2012

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Source: Deloitte - Talent Edge 2020: Blueprints for the new normal (December 2010)

Greatest Shift in Focus is On:

1. Performance Management2. Emerging Leaders3. High Potential Employee

Development4. Experienced Hiring5. Workforce Planning6. Retention of Employees with

Critical Skills7. Talent Assessment8. Senior Leader Development9. Campus / College Hiring10. Benefits to attract / retain talent

Why the emphasis on talent?• High performing companies do better at

managing and retaining talent• Valuation of companies is in now measured by

its talent.• Business environment is more complex and

dynamic• Boards and financial markets are expecting

more.• Employee expectations are also changing.

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Source: DDI – Nine Best Practices for Effective Talent Management (White Paper 2009)

Best Practice View of Strategic Talent Management

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Talent Identification & Business Alignment

• Aligned Core Competencies

• Job “Performance Profiles”

• “Right Fit” Talent Recruiting, Assessment & Selection

• Succession Planning• Workforce planning

• Talent Supply/Demand• Talent Gap / Risk Analysis• Aging Workforce Analysis• Workforce Diversity

Performance Management & Development

• Performance Mgmt• Leadership SKILLS

Training• Leadership

DEVELOPMENT programs

• Career Development & Planning

• Hi-Potential Talent Pipeline Relationship Mgmt

Proactive Talent Retention

• Turnover Analysis• Early Warning

Systems• Retention Planning &

Analysis• Employee

Engagement• Market

Competitiveness (Comp, Benes, Benchmarking)

Key Underlying Processes

Alignment with Business Objectives Assessment Coaching Environmental Analysis

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Best in Class - Talent Management Framework Overview

Key Points / Take Aways•Align with your business plan•Measure •Integrate and streamline

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Business Case:

A Talent Management Critical Review

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Talent Management Critical Review - Business Case Overview

• Why do a current state critical review and not just take action on known issues?

• How did you chose the approach and why?• Who owned/sponsored it? Who were the key stakeholders

involved?• What were the key considerations you needed to be sure to

address to ensure success?▫ Critical Success Factors

• How can the results be used and applied? ▫ Expected Outcomes / Key Findings?

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We need to be proactive in generating a steady supply of leaders to meet anticipated demand for leadership talent and drive team effectiveness.

Proactive Supply of Talent and Team Effectiveness

Ultimate goal:

Enabled by:

Requires:Identify/Select

LeadersDevelopLeaders

RetainLeaders

Right Peoplein the Right Roles

Clear Strategy

Faster Growth and Improved Business

Performance

Right People in the Right Roles

Right Peoplein the Right Roles

Organizational Structure and

Processes

Team Development

Team Work

Best Practice View of Strategic Talent Management

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Talent Identification & Business Alignment

• Aligned Core Competencies

• Job “Performance Profiles”

• “Right Fit” Talent Recruiting, Assessment & Selection

• Succession Planning• Workforce planning

• Talent Supply/Demand• Talent Gap / Risk Analysis• Aging Workforce Analysis• Workforce Diversity

Performance Management & Development

• Performance Mgmt• Leadership SKILLS

Training• Leadership

DEVELOPMENT programs

• Career Development & Planning

• Hi-Potential Talent Pipeline Relationship Mgmt

Proactive Talent Retention

• Turnover Analysis• Early Warning

Systems• Retention Planning &

Analysis• Employee

Engagement• Market

Competitiveness (Comp, Benes, Benchmarking)

Assess your current practices against leading practices to determine where your greatest gaps are in being able to BEST support our future business objectives

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Talent Identification Dir VP TR

Core Leadership Competencies / Traits

Opportunity to develop core set of leadership competencies for each role and manager training and tools on how to assess them using behavioral anchors;

Talent Assessment & Selection

Business Talent Reviews annually are not assessing strengths or leadership competencies.

Succession Planning / Pipeline +Bench

Strength

Readiness assessment criteria lacks mobility and situational experience criteria.

Talent Management & Development Dir VP TR

Performance Management

Too focused on development plan completion and business / operations experience focused, not leadership skills and competency gap assessment and development focused”; No “Off track” flags.

Leadership Skills Training Programs

Leadership competency development specific training programs exist. No training on performance coaching / development conversations or how to assess leadership competency.

Leadership Development Programs

No formal career or coaching program – candidate driven; Used ad hoc mainly to correct performance or close a technical skill gap .

Career Development & Planning

Manager training is needed on developmental and competency assessment conversations; Career path checklist needed.

Example: Current State Assessment Scorecard Sample -Talent Mgmt Practices

Key Points / Take Aways

•Drive Toward Excellence•Ownership•Best Practices/Industry Differences•Focus•Prioritization/Critical Few

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Optimizing Your Talent Decisions:

The Power of Workforce Intelligence

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What are YOUR Biggest CHALLENGES related to TALENT?

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Performance

Recruiting

Compensation

Systems / Automation

No Planning

Do You Know Where YOUR Organization’s Greatest Workforce / Talent Risks Are?

▫ Workforce Diversity Mix▫ Aging Demographics / Retirement Trends▫ Turnover trends▫ Headcount trends▫ Talent Supply / Demand for Critical Roles▫ Projected Talent Need in critical roles– Gap/Surplus▫ Succession Pool Health ▫ Readiness Pool ▫ Integrated Talent Management Technology and

Processes ▫ HR Talent Management Metrics ▫ Others?

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Leveraging Workforce Planning Technology for Talent Intelligence- Example - Executive Summary Report

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Example: Workforce Gap Analysis by Critical Role

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Example: Talent Supply / Demand Analysis – Available Talent Demographics and Market Competitors for Engineering Directors / Managers

Central NJ ( Trenton-Ewing-Princeton)

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Example: Headcount Trend Analysis

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Example: Turnover Trend Analysis

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Example: Workforce Diversity Analysis

Diversity something many employees and leadership teams are measured on. Insights into diversity gaps in your organization will help them link action plans to their short and long term diversity recruiting and development goals.

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Example of Revenue Risk Analysis Related to Identified Workforce

Planning Gaps 25

Example: Aging Workforce Demographic Trends Analysis • Analyzing workforce aging

demographics against projected retirements can provide significant insight into critical role succession pool health.

▫ 7.1% expected in the next 1 year▫ 7.7% expected to retire in the next 2

years ▫ 8.9% expected to retire in the next 3

years

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Complimentary Talent Risk Analysis Report • To conduct an analysis for your organization, we will need an HRIS data export of

the following current workforce data for the employee group you wish to have analyzed. A minimum of 100 records is needed to run a report.

• A report will be generated within 3 weeks of receiving the data from your HR team:

▫ Position Title▫ Department ▫ Hire Date▫ Birth date▫ Date Entry into Current Role▫ Termination Date▫ Termination Reason ▫ EEO Gender▫ EEO Race▫ Last Performance Rating Score▫ Annual Pay▫ Employee Employment – Full time / Part Time ▫ Employee Exempt Status – Exempt / Non Exempt

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Additional questions needed to complete the financial risk analysis section of the report:

Percentage that headcount is expected to increase or decrease next year in this role or overall?

Industry classification?

Total annual gross revenues

Total annual gross expenses

Average revenue per employee

Overtime policy

Questions George Langlois, Ph.D.

Ph 312-320 7614glanglois@org-strat.com

www.org-strat.com

Lori Muehling, Ph.D. Ph (630) 657-4162

Lori.Muehling@exeloncorp.com www.exelon.com

Carl KutsmodePh 773 509 6801

carlkutsmode@talentrise.com www.talentRISE.com

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