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The Executive Guide to

Integrated Talent

Management

Kevin Oakes, CEO

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Kevin Oakes CEO, i4cp

About Kevin Oakes

Background

Founder, CEO of i4cp

Former Chairman, Jambok

Former Chairman, ASTD Board

Founder, President, SumTotal

Systems

Former CEO, Chair of Click2learn

Founder, CEO Oakes Interactive

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Who we are:

i4cp focuses on the people

practices that make

high-performance

organizations unique.

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High-performance organizations consistently outperform most of their competitors for extended periods of time.

These companies performed better over the past five years, based on these four indicators:

1. Revenue growth

2. Market share

3. Profitability

4. Customer satisfaction

Defining high-performance

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i4cp research has shown that high-performance companies excel in five core areas:

1. Strategy

2. Leadership

3. Talent

4. Culture

5. Market (customer focus)

The 5 Domains of High Performance

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i4cp helps organizations leverage the core domains of high performance through 4 delivery vehicles:

1. Research

2. Peers

3. Tools

4. Data

What We Do

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i4cp Network

2007 2008 2009 2010 2011

-2011

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Uniting the silos

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Talent Management New concept or an old idea

whose time has arrived?

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“There is no bigger problem in the global marketplace today than how to obtain, train and retain knowledge workers.”

- Michael Moe, Chairman & CEO

ThinkEquity Partners LLC

“The killer app for the next decade is talent acquisition and retention.”

- John Doerr, Partner

Kleiner, Perkins, Caufield & Byers

Predictions

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An investment banker’s graph

Source: CIBC, February, 2001

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Foreword: Tom Rath

Gurus: Peter Cappelli, John Sullivan, Jon Ingham, Ed Lawler, Marshall Goldsmith, Bev Kaye, Noel Tichy, Dave Ulrich

Practitioners: Agilent, Novelis, Hertz, Cisco, Edwards Lifesciences, 3M, Deloitte, General Mills

The Executive Guide to ITM

Chapters

1. Overview 2. Recruiting 3. Benefits 4. Performance Mgt. 5. Succession 6. Engagement 7. Leadership

Development 8. Conclusion

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Nuggets from the book…

“Failures in talent management may be

more recognizable than the concept itself.”

Peter Cappelli

Director of the

Center for Human

Resources

Wharton

“The goal of talent management is the more

general task of helping the organization achieve its

overall objectives. In the business world, that

objective is to make money.”

“Helping the organization achieve its goals begins

with recognizing that the most important problem

facing virtually all employers is the need to

respond quickly to changes in competitive

environments.”

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Higher-performing organizations (HPO) are

more effective at managing talent

Overall, to what extent is your organization

managing talent effectively?

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What do HPOs include in talent management?

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Nuggets from the book…

“…we do not say ‘integrated talent management’ at

Agilent. At least the words are not spoken aloud.

And yet I absolutely know it is happening at Agilent.”

Teresa Roche

VP & CLO

Agilent Technologies

“The three dimensions are set and align strategy,

build organizational capability, and deliver results;

and underneath are specific behaviors.”

“…our CEO, Bill Sullivan…cares deeply about having

the best talent at Agilent. There is not a business

strategy where talent is not considered.”

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What do you look for in new recruits?

Engagement starts with recruitment

Organizations with

Highly Engaged

Employees

Organizations with

Disengaged

Employees

1. Has passion for work 1. Intelligent

2. Has positive attitudes

toward peers and

customers

2. Confident in work abilities

3. Has desire to set and

achieve goals 3. Has excellent job skills

4. Adaptable

4. Has positive attitudes

toward peers and

customers

5. Intelligent 5. Emotionally mature

6. Confident in work abilities 6. Has passion for work

7. Has excellent job skills 7. Has desire to set and

achieve goals

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Nuggets from the book…

“Hiring the right people makes developing the right

skill sets so much easier. Hiring the right person sets

the foundation for every talent activity that follows.”

Leslie Joyce

Chief Talent Officer

Novelis

“Individual opinion is terribly unpredictable, and

worse, it’s often wrong.”

“Despite a great education in the science and practice

of employee selection ― managers consistently

ruined my handiwork by choosing the person they

“liked best” ― sometimes despite the clear evidence

that there were other equally qualified candidates with

a far higher likelihood of being successful.”

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Lower-performers are often more likely to measure

tactical recruiting metrics than higher-performers

56%

50%

56%

82%

68%

45%

46%

57%

66%

59%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Percent of offers accepted

Acceptance rate of first offers

Cost to fill

Hiring cycle time

Number of recruiter requests

High Market Performers

Low Market Performers

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Higher-performers are more likely to measure quality

of recruiting efforts than lower-performers

15%

19%

39%

43%

26%

61%

0% 10% 20% 30% 40% 50% 60% 70%

Employee referral rates by specific

segment

Cycle time to competency or full

productivity

Employee referral rates

High Market Performers

Low Market Performers

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Nuggets from the book…

“This volatile business context accelerated the need for

Hertz to implement integrated structures, thus eliminating

silos not only within HR, but across the entire enterprise.”

Karl-Heinz Oehler

VP, Global Talent

Management

Hertz

“Adopting new behaviors can only be encouraged,

implemented, and sustained if they are properly

compensated and rewarded.”

“… cutting a budget meant not doing what the business

leaders asked for in the first place.”

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0% 20% 40% 60%

To recognize and reward high performers

Low Performing Orgs

High Performing Orgs

Rewarding high performers

What are the primary drivers for pay-for-performance

programs in your organization?

32%

47%

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37% of HPOs consider their P4P strategy to be highly effective at improving individual performance

16% of LPOs consider their P4P strategy to be highly effective at improving individual performance

31% of HPOs give their highest performers merit increases of 7% or more

17% of LPOs give their highest performers merit increases of 7% or more

25% of HPOs give their highest performers 150% or more of their annual

bonus target

0% of LPOs give their highest performers 150% or more of their annual bonus target

Rewarding high performers

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Nuggets from the book…

“The existence of an effective performance management

system is often the major differentiator between organizations

that produce adequate results and those that excel.”

Edward Lawler III

Distinguished

Professor of Business

USC

“People at all organizational levels go through the

motion of formulaic performance appraisals with

astonishing insincerity and have little to show for it.”

“All too often in traditional organizations,

performance appraisal is something “the top tells

the middle to do to the bottom.”

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The decline of forced ranking

0%

5%

10%

15%

20%

25%

Forced Distribution Forced Ranking

Forced Distribution & Ranking Trends Among High-Performance Organizations

2009 2011

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Nuggets from the book…

“In the business world, CEOs have one priority: growth. In the

world of talent management, practitioners should only have

one priority: their CEO’s vision.”

Annmarie Neal

Vice President “Today’s performance management systems must link to

three imperatives in order to drive the growth our CEO’s

need; business integration, organizational performance,

and an emphasis on return on investment.”

“And if culture will eat strategy for lunch, then

traditional performance management systems will

eat innovation for lunch.”

Robert Kovach

Director

Cisco Center for

Collaborative Leadership

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1. The performance management process includes developmental plans for the next work period

2. Manager training is provided on conducting a performance appraisal meeting

3. The quality of performance appraisals is measured 4. There is a system in place to address and resolve poor

performance 5. The appraisal includes information other than that based on the

judgment of managers 6. The performance management process is consistent across the

organization 7. Employees can expect feedback on their performance more often

than once a year 8. 360˚ or multi-rater feedback is used to support the performance

management process 9. The performance management process includes ongoing goal

review and feedback from managers

9 Keys to Performance Management

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Nuggets from the book…

“Our goal is to have a minimum of two successors for

each critical job.”

Rob Reindl

VP Human Resources

Edwards LifeSciences

“A few years back, I asked my compensation leader

for the average bonus percentage paid to all top

talent and the average bonus percentage paid to the

rest of the salary exempt employees. Believe it or

not, top talent was lower.”

“During a decade when many organizations faced

significant turmoil due to economic conditions that

challenged sales growth, Edwards’ talent

performed extremely well. It is talent that executes

business strategies.”

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Next

Best Most high-

performance companies do it

The Rest

Most companies do it, but it has little impact on performance

Highly correlated with high-performance, yet most companies don’t do it

Best, Next and “The Rest” practices for developing

those in the succession planning pipeline

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Rest 76% of all respondents say their organizations use senior leader’s

nomination to identify candidates for succession planning to a high or very high extent, but this shows the weakest correlation with

succession planning success.

Some succession candidate identification tools

have a greater impact than others

Best 57% of use designation as high-potential talent to identify candidates

to a high or very high extent, with a .23 correlation with success.

Next 16% of use other types of assessment, such as psychological testing,

which has a .30 correlation with success.

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Promotion Rate

Promotion Rate is defined as a change in job code and an increase in salary in the HRIS system of record including progression promotions, internal hires, development assignments

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Internal Placement Rate

Internal Hire is defined as a current employee is selected for a role that was posted on an external job board

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Quality of Movement Scorecard

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Nuggets from the book…

“3M has been actively measuring employee attitudes

about the workplace since 1951.”

Karen Paul

Manager

HR Measurement

3M

“Innovation, arguably 3M’s most treasured asset,

rests upon and is fueled by employee engagement.”

“At 3M, managing and engaging talent isn’t an

annual ‘event,’ but a continuous process,

composed of various integrated sub-processes,

evaluations and tools.”

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Disengaged 23.40%

Moderately Engaged42.60%

Highly Engaged 34.00%

Estimate the percentage of your workforce that you

believe fit into the following categories

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Highly Engaged

22%

Moderately Engaged

42%

Disengaged or

Minimally Engaged

36%

Low Market Performers High Market Performers

Highly Engaged

42%

Moderately Engaged

42%

Disengaged or Minimally

Engaged 16%

Perceived degree of worker engagement

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Nuggets from the book…

“One person desperately wants flexibility, another wants fun,

and yet another craves stability. But how could we have

known? We can only know, and then deliver, by asking.”

Bev Kaye

Founder and CEO

Career Systems

International

“Why are we so willing to conduct exit interviews, but

seldom take the time or summon the courage to

conduct stay interviews with the people we can least

afford to lose?”

“We know of a CEO who charged $30,000 to a

manager’s operating budget because he needlessly

allowed a talented person to leave. Now, that’s what

we call holding someone accountable.” Sharon Jordan-Evans

Founder and CEO

Jordan-Evans Group

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Attrition Metrics – Tactical

Finding: When comparing large organizations (10,000+ employees), there is no significant difference between higher- and lower-performers’ likelihood of measuring tactical retention metrics.

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Attrition Metrics – Strategic

Finding: When comparing large organizations (10,000+ employees) higher-performers are more likely to measure who is leaving the organization than lower performers.

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Nuggets from the book…

“Unfortunately, integration isn't easy and can quickly

degrade over time. The reality is that knitting talent

things together is hard work because there are as

many forces pulling us apart as pulling us together.”

Kevin Wilde

VP, Organizational

Effectiveness & CLO

General Mills

“The best systems providers are promoting

integrated, full-suite talent management systems.

The evolution is promising but the conversion

process usually means someone gives up their

favorite functionality for the greater (promised) good.”

“I've never seen an organization overcome poor

managerial talent management habits by imposing

a sophisticated out-of-the-box software package.”

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Integration is a challenge for all organizations

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There are no more Learning Mgt. System, Recruiting or Performance Mgt. Vendors Everyone claims to be an Integrated Talent Management Vendor

M&A will continue to be the primary vehicle to get there Taleo buys Vurv and Learn.com Authoria & PeopleClick merge StepStone buys Mr Ted ADP buys Workscape Kenexa buys Salary.com Cornerstone IPO’s and buys Sonar6 SumTotal buys Softscape, GeoLearning, CyberShift and Accero SuccessFactors buys InfoHRM, CubeTree, Jambok & Plateau SAP buys SuccessFactors Oracle buys Taleo Salesforce buys Rypple IBM buys Kenexa

A note on ITM technology vendors

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M&A: Four Primary Areas Recruiting

Performance Learning

HRIS/ERP

ITM

Source: i4cp

Note: Most of these

companies consider

themselves ITM

vendors; areas shown

represent their “roots”

“Know the Roots”

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Nuggets from the book…

“Talent differentiates, drives productivity, determines

customer service and increases intangible shareholder

value. Talent matters. Talent is too important to be left to

uncoordinated events.”

Dave Ulrich

Professor of Business

University of Michigan

“Simply stated, competence deals with the head

(being able), commitment with the hands and feet

(being there), and contribution with the heart

(simply being).”

“An emerging talent formula might be:

competence x commitment x contribution = talent.”

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Corporate

411 First Avenue South • Suite 403 • Seattle, WA, U.S.A. 98104

Telephone 866-375-i4cp (4427) • Fax 206-624-6951

Research

8950 Ninth Street North• Suite 115 • St. Petersburg, FL, U.S.A. 33702

Telephone 727-345-2226 • Fax 727-345-1254

www.i4cp.com

For More Information: kevin.oakes@i4cp.com

© 2011 Institute for Corporate Productivity, Inc. Member companies may reproduce and distribute this file on an unlimited basis

to their employees for internal management purposes only. Nonemployees (including outside consultants) may not be given

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