De 9-box grid: potentieel & performance optimaal ingezet - Prof. Dr. Dirk Buyens

© Vlerick Leuven Gent Management School – Prof. dr. Dirk Buyens

Loopbaanmanagement en eenveranderende organisatiecontext

HR Day 13 juni 2012Prof. dr. Dirk Buyens


Talent questions HR needs to address

What do we mean by talent?

What are the top things a leader should know about talent?

How can leaders work with their HR professionals to build talent?

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What do we mean by “talent”?

CEO succession … building succession(The crown prince effect)

High potential employees … identifying and developing early (The happy few syndrome)

Leaders in key positions in the company … gaining support(The holy manager pitfall)

All individuals within the company (workforce, human capital, people, employees, etc.) … increasing productivity(The flower power movement)

The organisation capability of building talent (culture, teamwork, process) … shaping a culture(The one size fits all paradigm)

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What do we mean by “talent”?

Talent is a systematic process (not an event) to secure general and targeted individual competencies (what people know, do, and value) and organisation capabilities (not just a person, the process) that create sustainable value for multiple stakeholders (employees, customers, investors)

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TALENT =

COMPETENCE X COMMITMENT X

CONTRIBUTION

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Invest in talentStrategy Definition

BuyAcquire new talent by recruiting individuals from outside or from other departments or divisions within the organisation.

BuildDevelop talent through training, education, formal job training, job rotation, special assignments and action learning.

BorrowPartner with consultants, vendors, clients and suppliers outside the organisation in arrangements that transfer skill and knowledge.

Boost Move the right people through the organisation and into higher positions.

Bind Retain employees with high growth potential and valued talent.

Bounce Remove low‐performing or under‐performing individuals.

B

B

B

B

B

B7


Develop A players

1. Understand what drives A players.

a. Starting a new project from scratch.

b. Fixing a business or product in trouble.

c. A job rotation in a different work environment.

d. A high‐profile special project assignment.

2. Provide mentors for A players.

a. Clarify their career options.

b. Better understand the organisation and navigate its politics.

c. Build support networks.

d. Deal with work obstacles.

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Develop B players

1. Identify the employees that have growth potential and provide them

with:

a. “Stretch” assignments

b. Coaching

c. Training

2. Provide frequent affirmation

a. Tell them they are valued

b. Listen to their ideas

c. Praise their accomplishment

d. Trust them

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Develop C players

1. The Return on Management ratio

ROM = productive energy released divided by management time and

attention invested

2. Identify your C players

3. Move them up – or out

4. Dismissing C players

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Potential

Performance

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Matching behaviour versus performance

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Using the performance and potential matrixto assess

What is it?The matrix is used to evaluate an organisation’s talent pool.

Why use it?1. It’s a simple way to assess any population of leaders on two important

dimensions.2. It’s a great way to facilitate a dialogue amongst a senior leadership

team. Teams use it to calibrate their expectations and ratings.3. With a good open debate, the multiple perspectives provide for a

much more accurate assessment (vs. one person’s opinion).4. The process can facilitate a shared sense of ownership for the

organisation’s talent pool.5. It’s a great way to identify development needs and transition to

development planning.

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How to use it

1. Don’t do it alone for the first time

2. Have a pre‐meeting

3. Preparation

4. Getting started

5. Establish your “benchmarks”

6. Discuss as many names as time allows

7. Move to development

8. Follow‐up on a quarterly basis to monitor development plans

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What are the benefits? Why is it so popular?

1. It’s simple and it works (95% of the time)

2. It’s cost‐effective

3. A catalyst for robust dialogue

4. Helps calibrate criteria and expectations

5. It’s more accurate than one person’s opinion

6. Facilitates shared ownership, teamwork

7. A diagnostic tool for development

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Performance

The outcome of the performance review cycle.

Rating or ranking people?

Need of a forced choice?

Does it make people productive/happy?

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Potential

The outcome of a talent review

Critical aspects of a HiPo‐policy

1. Degree of openness

2. Age or experience level

3. ‘Labelling’ or ‘assigning’

But, what with all the others?

3 other critical groups:

1. perform: ++ / potential: – –

2. Perform: – – / potential: ++

3. Perform: – – / potential: – –

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Identify leadership potential

1. Propensity to lead

2. They bring out the best in others

3. Authenticity

4. Receptivity to feedback

5. Learning agility

6. Adaptability

7. Navigates ambiguity

8. Conceptual thinking

9. Cultural fit

10. Passion for results

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Agility

1. People agility

2. Results agility

3. Mental agility

4. Change agility

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Scorecard for assessing leadership potential1. Could the employee perform at a higher level, in a different position or take on increased

responsibilities within the next year (consider the person’s ability only, not whether there is a position available to support this growth)?

2. Could the employee perform at a higher level in a different position or take on increased responsibilities within the next three years (consider the person’s ability only, not whether there is a position available to support this growth)?

3. Can you envision this employee performing two levels above his or her current position in the next five to six years?

4. Is the organisation likely to value growth of the skills and competencies of this employee over the next several years?

5. Could the employee learn the additional skills and competencies he or she needs to be able to perform at a higher or different level?

6. Does the employee demonstrate leadership ability—by showing initiative and vision, delivering on promised results, communicating effectively, and taking appropriate risks?

7. Does the employee demonstrate an ability to comfortably interact with people at a higher level or in different areas?

8. Does the employee demonstrate comfort with a broader company perspective than his or her job currently requires?

9. Does the employee demonstrate flexibility and motivation to move into a job that might be different than any that currently exist?

10. Does the employee welcome opportunities for learning and development?

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11 results for spotting future leaders

1. They consistently deliver ambitious results.2. They continuously demonstrate growth, adaptability, and learning better

and faster than their excellently performing peers.3. They seize the opportunity for challenging, bigger assignments, thereby

expanding capability and capacity and improving judgment.4. They have the ability to think through the business and take leaps of

imagination to grow the business.5. They are driven to take things to the next level.6. Their powers of observation are very acute, forming judgments of people

by focusing on their decisions, behaviours and actions.7. They come to the point succinctly and are clear thinkers.8. They ask incisive questions that open minds and incite the imagination.9. They perceptively judge their own direct reports and have the courage to

give them honest feedback.10. They know the non‐negotiable criteria of the job of their direct reports and

match the job with the person.11. They are able to spot talent and see the “God’s gift” of other individuals.

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The Performance & Potential Matrix

Improve in current role or

reassign

Improve in current role

Bad hire/replace Improve in current role Reconsider

Prepare for future role

High

Low High

POTENTIAL

P E R F O R M A N C E

High

Growth

Limited

Needs development

Meetsexpectations

Exceedsexpectations

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The talent cycle

Talent definitionreviews

Talent awareness

Talent identification

Talent deployment

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What’s driving the current 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. Organisations wage a

new “war for talent” these days.

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Talent Management – 9 box matrix

Potential keyLow Medium High

High (Turn)Shows indicators of being able to make significant career step (e.g. at least 1 leadership level or equiv.)

Medium (Growth)Shows indicators of being able to progress to more stretching roles within a similar level.

Minimum(Expertise)Likely to stay at current level, doing same kind of work.

Potential

Performance

Ceiling1 Top Exec Level2 Divisional Board3 Direct report to Divisional Board

TypeLeadership and/or Specialist

ReadinessNow or less than 3 years

Use directional arrows to indicate movement of individuals since last review

Talent key

Action keyPriority Action Needed

Needs development opportunities

Develop, motivate

Improvement plan critical

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Nine leadership development strategies for a performance and potential matrix1A (high potential, high performance): Stretch assignments, things they don’t already know how to do, assignments that

take them beyond their current role; high profile, where stakes are high. Give them a “start‐up” assignment, something no one has done, a new product,

process, territory, etc … Give them a “fix‐it” assignment, a chance to step in and solve a problem or repair

someone else’s mess. Job change, rotations, job swaps – an opportunity to experience a brand new role,

short term or long term. Help them build cross‐functional relationships with other A players. Find them a mentor – at least one level up. Provide an internal or external coach. Access to exclusive training opportunities. Access to meetings, committees, etc … one level up; exposure to senior managers,

VPs; advisory Councils. Watch out for signs of burnout. Watch for signs of retention risks; know how to “save” a hi‐po. Next level up exposure, responsibilities, shadowing.

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2A (high performance, moderate potential): Development activities similar to 1A.

Difference is often degree of “readiness” for larger roles. Development is preparation for longer term opportunities.

3A (high performance, limited potential): Ask what motivates them and how they want to develop.

Provide recognition, praise, and rewards.

Provide opportunities to develop in current role, to grow deeper and broader capabilities and knowledge.

Provide honest feedback about their opportunities for advancement if asked.

Watch for signs of retention risks; know how to “save” a “hi‐pro” (high professional).

Ask them to mentor, teach, and coach others.

Allow them to share what they know, presentations at company meetings, external conferences, to be “the highly valued expert”.

Nine leadership development strategies for a performance and potential matrix ‐ continued

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1B (good/average performance, high potential): Development activities similar to 1A. Difference is current performance level. Focus more on competency gaps that will move them from B to A performance; good to great performance.

2B: (good/average performance, moderate potential): May not be eager or able to advance; don’t push them, allow them to stay where they are. Continuously check‐in regarding willingness to advance, relocate. Provide occasional opportunities to “test” them. Provide stretch assignments. Provide coaching and training. Help them move from “good to great”. Tell them they are valued. Listen to their ideas. Praise their accomplishments. Trust them.

3B (good/average performance, limited potential): Combination of performance management, training, and coaching to help them move from “OK to good”. Provide honest feedback about their opportunities for advancement if asked.


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1C (poor performance, high potential): Find out the root cause of poor performance and together develop an action plan to improve. Consider moving the high potential to a different role (may have been a poor fit). Provide additional support, resources. Look for ways to “attach” to 1As, 1Bs, or 2As. After a “reasonable” period of time, if performance does not improve, then re‐examine your potential

assessment .

2C (often used for leaders too new to rate): Focus is on boarding, orientation, relationship building. Provide a peer mentor. Provide formal new leader training.

3C (poor performance, limited potential): Use a performance management approach, not a developmental approach. Improvement action plan vs. an IDP. Clarify expectations. Identify and remove “blockers”, poor performers that are standing in the way of high potentials . Provide

clearly defined goals. Be explicit about the ways in which they must improve. Provide remedial coaching and feedback. After trying all of the above, after a ”reasonable” amount of time, move the person out of the role. Dismiss or

move to individual contributor role.


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Matching behaviour (potential) versus performance

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Skill engagement analysis matrix

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Let’s put it into practice: the BNP Paribas Fortis case of Talent Review

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Talent Review bij BNP Paribas Fortis:

heden, verleden en toekomst

Vlerick HR Day, 13 juni 2012

| 00/00/0000 |Department / name 38


Inhoudstafel


BNP Paribas Fortis at a glance Today’s Talent Review Practice at BNP Paribas Fortis Talent Review in the HR Cycle Talent Review Process Introducing the 9-box

Lessons Learned & Future Challenges


18.000medewerkers

5 Business-Lines

1.378 functies

65.000mandagen opleiding per jaarMogelijkheid om elke drie jaar

van functie te veranderen

250

3.00018.000


Inhoudstafel


BNP Paribas Fortis at a glance Today’s Talent Review Practice at BNP Paribas Fortis Talent Review in the HR Cycle Talent Review Process Introducing the 9-box



Talent Review in HR Cycle

TalentIdentification

Talent Development

OrganisationPerspective

IndividualPerspective


Talent Development




Talent Development




Talent Development



Performance & Reward

Management

Talent Management

Motivation & Team

Management

Strategic Workforce Planning

Q1 Q2 Q3 Q4Target Setting

Appraisal

Salary Increase

Premiums

Promotions

Global People Survey

Team Motivation Barometer

Workforce Planning

Recruitment

Onboarding

Mobility

DismissalRetirement


Talent Development




Talent Development




Talent Review in the Talent Cycle


Talent Development




Talent Development



Talent Review

Personal Diagnostic

Tool

Personal Development

Plan

CareerDevelopment Programmes


Talent Review in the Talent Cycle


Talent Development




Talent Development



Talent PRevie

w

Personal Diagnostic

Tool

Personal Development

Plan

CareerDevelopment Programmes


Inhoudstafel


BNP Paribas Fortis at a glance Today’s Talent Review Practice at BNP Paribas Fortis Talent Review in the HR Cycle Talent Review ProcessIntroducing the 9-box



Talent Review Process: The Dynamics

Individual Input Input in ToolCollective Throughput Roundtable MeetingCollective Output Reportings & Action Plans


Talent Review Process:Individual Input

For the manager and the Round Table exercise:

ask yourself following questions:

What is your strategy and which changes do you expect in the coming 3 years?

What are the main objectives for your part of the organisation for the coming 3 years?

When translating these key objectives towards your team, who come out as the key people and which are the key functions?

(Mind: these might not overlap; key people are not necessarily in key functions, yet.)



Talent Review in het verleden: The 16-boxDefinities

HR Department | Date | 48

Hipo describing key-notions: long-term growth potential // investment involving some risk // potential for above-average returns // support with managerial and technical expertise

Top Talent describing key-notions: potential for future leadership roles // fast-track development potential

Solid Citizen describing key-notions: recognised // well-established // sound // high-quality // widely accepted // long record of stable and reliable growth

Pillar describing key-notions: corner stone in team // highly experienced // large amount of knowledge // key person towards clients


Talent Review vandaag: The 9-boxDefinities

expected

distribution

6Clearly below expectations

5Almost meets expectations

4Meets expectations

3Above expectations

2Clearly above expectations

1Excellent

Emerging Professional

Valued Professional

B A

3

2

1 Rising Star Top Talent

Solid ContributorEmerging Potential

70% 25%

Significant growth potential to increasing responsibility / com plexity on short term (0-2 years) - vertical m obility probable

Potential to grow to a higher level of responsibility / com plexity on m id long term (3-5 years) - both vertical and/or horizontal m obility possible

Lim ited growth potential on m id long term (3-5 years) - horizontal m obility possible

Role Fit ?

Inconsistent Performer

Under‐Performer

C

expected

distribution

10%

30%

60%

5%

Perform ancePotential

15%

50%

35%

14% 60% 26%

2% 9% 4%

30%7% 13%

5% 21% 9%


C

B

A

Talent Review vandaag:Definities van 16-box naar 9-box

As Is: 4 x 4Potential

4. Vertical mobility possible to a significant higher responsibility level

3. Vertical and/or horizontal mobility possible to a higher responsibility level

2. Horizontal mobility possible at current responsibility level. Growth is possible to underline seniority.

1. No horizontal mobility possible at current responsibility level

Performance

4. Clearly above target3. On or Above Target2. Below Target1. Clearly Below Target

To Be: 3 x 3Potential

1. Significant growth potential to increasing responsibility / complexity on short term (0-2 years) - vertical mobility probable

2. Potential to grow to a higher level of responsibility / complexity on mid long term (3-5 years) - both vertical and/or horizontal mobility possible

3. Limited growth potential on mid long term (3-5 years) - horizontal mobility possible

Performance

1. Excellent2. Clearly above expectations3. Above expectations4. Meets expectations5. Almost meets expectations6. Clearly below expectations

10%

30%

60%

25%

70%

5%

Expected*


Talent Review vandaag :Shift van Performance naar Potentieel

Focus on competences that best predict potential:• Ability to learn• Taking initiative• Inspiring others *• Giving direction in a positive way *• Vision *

• Teamwork • Client focus• Risk management

Indication for potential1 Competences from BNP Paribas

Competency catalogue*: management competence

• Need to better structure discussions around potential• Providing guidance in pinpointing potential rating

Potential = Competences1 x Engagement x Aspiration


Competencies vs. Potential Analysis RT 2010-2011 data

‘Kitchen table’ analysis suggests potential correlates to:

1. Learning capabilities(.38)

2. Leadership(.36)

3. Performance orientation(.34)

4. Power of conviction(.32)EntrepreneurshipVision(.31)Strategic thinking

Multiple regression analysis shows that 40% of the variance in potential can be explained by the set of 27 competencies, with the most distinct and statistically significant impact of 4 competencies:

1. Learning capabilities2. Self knowledge3. Power of conviction4. Strategic thinking

Both analyses support the thesis that competency ratings have a predictive value for potential ratings and give an indication about the most relevant competencies. However, because potential is defined as ability * aspiration * engagement, the competency ratings are not the only indication for potential assessment, but are seen as a support for a more objective discussion about potential.

| 00/00/0000 |Department / name 53March 2012 Round tables 53

Talent Review Process: ToolHomepage

Manager driven review.

HR Advisor as co-planner


Talent Review Process: ToolPeople Review

Possibility to remove someone from the list


Talent Review Process: ToolPeople Review – Strengths & Development areas

Use good common sense and a relevance check on what you write down!

Employee has a right to consult!

Discuss with respect!


Talent Review Process: ToolCompetencies voor Potentieelinschatting

Historical data:

RTT results of 2010 & 2011 will be available in the tool

Historical data for transparency, keep in mind

People evolve!


Talent Review Process: ToolMatrix Potential -Performance


Talent Review Process: ToolMatrix Retention


Talent Review Process: ToolSuccession Plan


People Review – Retention


Talent Review Tool:Employability

How to improve Employability?

USE FREE COMMENTS

- Consider which Business Line or Métier & think cross-business

- Consider which function or role

(this is not about Hay!!!)

- Consider which domain or internal client


Talent Review Process: ToolSuccession Plan


Talent Review Process: ToolActions & Conclusions

Action plan is needed at least for people plotted

Unsatisfactory (C) Good overall perfor. (B) Best of Class (A)

Performance

1Seeks new challenge

and able to deliver

2Potential Growth/

Role expansion

3No / Limited

growth

ROLE FIT ?

2%

RISING STAR

9%

TOP TALENT

4%

EMERGING POTENTIAL

13%

SOLID CONTRIBUTOR

30%

VALUED PROFESSIONAL

9%

EMERGING PROFESSIONAL

21%

UNDER-PERFORMER

5%

INCONSISTENT PERFORMER

7%

Pote

ntia

l


The Talent Review Process:Collective Throughput


The Talent Review Process : Collective Throughput



The Talent Review Process:Collective Output


HiPo Programmes1. Define your long list

2. Potential Analysis Aid

EmployeeHR business

partner

3. Interviews

4. Validation

1. Take list of people mentioned as person eligible for a Hipo Program in the RTs

2. Check that people are mentioned as successors

3. Check scores of the persons (priority to people with a score of 4-4, then 4-3 and 3-3)

4. Check quota’s

To be completed by the manager

HR supports and explains the grid to the managers

PAA 2011 Elect Final GB non HR (4).xls

BNPP Group documentation\HR Guide.pdf

Check guidance for Hipo Selection interviews :

Interview HR\Guidance for HiPo Selection Interview (Print A3).pdf

Interview HR\Guidance for HiPo Selection Interview (Print A4).pdf

Nomination process\Interview HR\Guidance document forHR interview.doc

2011


Talent Pool : High PotentialsCareer Challenge

HR Department | Date | 70

Trainees

Global High Potentials 3



Local High Potentials 3



Talent Pools

HB 21

HB 18

HB 16

Towards Executive Management

From Managing to Leading

Towards Full Management

Early career – from Junior to Strong Contributor

Aspiration Engagement

Ability


Inhoudstafel


BNP Paribas Fortis at a glance Today’s Talent Review Practice at BNP Paribas Fortis Talent Review in the HR Cycle The Talent Review Process Introducing the 9-box



From “nice-to-have” to “must have

Maturiteit enorm geëvolueerd:

Shifts

Belang van tool & definities voor kwaliteit

Finaliteit evolueert mee met business


Organisatieperspectief:

Integreren van Talent Review Data

in Workforce Planning & vice versa

Transparantie van interne arbeidsmarkt

Individueel perspectief:

Integreren van de visie van de individuele medewerker op ambitie en mobiliteit

Transparantie van interne arbeidsmarkt


The greatest challenge…

De 9-box grid: potentieel & performance optimaal ingezet - Prof. Dr. Dirk Buyens

Education

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