Talent Management & The New Normal

Talent Management & The New Normal

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Today’s AgendaToday s Agenda

• Introduction - 5 minutes

• Feature Presentation and Q&A - 50 minutes

• Wrap Up and Tour of Track Page - 5 minutes


T d ’ M d tToday’s Moderator

Bill Craib, Vice PresidentHCI Communities & EducationHuman Capital InstituteHuman Capital Institute www.humancapitalist.org

Today’s Guests

Keith MessickSenior Manager of Customer Results & Global ResearchSuccessFactors, Inc.

Warren LindleyWarren LindleyVice President, Talent Optimization and HR GovernanceKellogg Company

Carolyn CarlsonStrategy & Transformation PartnerInternational Business Machines Corp (IBM)


International Business Machines Corp. (IBM)

Smarter Talent for a Smarter Planet

Talent Management and the New Normal

Achieving agility and competitive advantage with your talent strategy

© 2009 IBM Corporation

Driving innovation and growth in today’s business environment

Increasing Shareholder Value – Talent is a Competitive AdvantageThe ability to manage costs drive productivity and gain a competitive

g g yrequires focus on the workforce.

– The ability to manage costs, drive productivity and gain a competitive advantage from the workforce is growing in importance and focus, leading to:• Workforce cost optimization• Influence revenue growth

Building the Enterprise of the Future – The Workforce Dimension – Our CEO study offers important insights into the future of organizations and

the workforce imperatives:• Developing an adaptable workforce• Developing an adaptable workforce• Innovation - translating customer needs into employee action• Globally integrating talent• Building a socially responsible organization

The Changing Workforce – Cultural Intelligence & Adaptability– External forces are changing the way that we need to look at the workforce

we have and the workforce that we will need. These forces include:• Changing demographics

© 2009 IBM Corporation7

Changing demographics• Accelerated globalization

A greater focus on Talent Management is correlated with a better financial performance.

From a subset of publicly traded companies, larger companies with a greater focus on talent management have higher financial performance.

About twice as many out-performers strongly

d th t th i

% of financial outperformers within clusters – by profit

60%

70%

agreed that their organizations were focused on two key practices: understanding and addressing workforce

Percentage of financial out-

40%

50%

60%

gattitudes and engagement levels and aligning employee and workgroup incentives with

i t b i

financial outperformers

within cluster*

20%

30%

appropriate business goals.

− IBM-HCI Study0%

10%

Optimizers Talent Managers

Magnets Engineers


* Percentage of companies that exceed the sample’s median % Profit increase, by industry, 2003-2006

Better Talent Management can have a significant impact on profit lper employee.

“Most companies still earn profits per employee at close to

Net Income per Employee

$83,000Most companies still earn profits per employee at close to the same low levels earned in the 20th century because they have not become very adept at mobilizing the mind power of their workforces. As a comparison, the average top-30 company increased profits per employee by 70 percent

$53,000

p p p y y pThe target should be to improve profits per employee by 30 to 60 percent or more.”

Top 30Companies

Next 30Companies

“The opportunities to improve the performance of workers just from increased efficiency alone are huge: Surveys show that a majority of workers in thinking-intensive jobs in large companies feel they waste from half a day to two days out of every workweek...

The opportunities to improve the effectiveness of such workers are even larger. The opportunities to mobilize the latent intangible assets (that is, knowledge, skills, relationships and reputations) of a company’s workforce are vast.”


Mobilizing Minds Lowell L. L Bryan and Claudia L. I. Joyce

Talent Management can also help improve workforce performance.Good people are great for business

49%

67%

50%60%70%

40%49%

20%30%40%50%

0%10%

Increasedd ti it i

Increased profiti l

Increasedi lproductivity in

operations rolesin general

managementroles

revenue in salesrole


“How much more does a high performer generate annually than an average performer?” - McKinsey

Talent Management can help optimize workforce cost.

30Labor Cost / Revenue Percent

272829

252627

242002 2003 2004 2005 2006

“Organizations invest $30 in labor costs for every $100 in revenue generated … Once again, this strongly illustrates the importance of measuring, managing, and maximizing the impact human capital has on the business.”


p p- Saratoga

Organizations must balance the demands of two agendas: the efficient management of the HR function and facilitation of workforce and talentmanagement of the HR function, and facilitation of workforce and talent initiatives to improve performance.

Enabling the Globally integrated talent managementWorkforce to drive performanceImprove productivitydevelop and retain “Top Talent”

y g gHR workforce analyticsPerformance managementCollaboration and knowledge Leadership development & optimization

$

develop and retain Top Talent , move out poor performers

(Strategic) HR Value

Driving effectiveness and efficiency of the

(Foundation)HR Value

Systems enabled transformationFlexible, scalable operating models Sh d i / t f tiand efficiency of the

HR FunctionFlexible HR Infrastructure,reduce costs, improve efficiency

$

Shared services / centers of expertiseIntegrated IT infrastructureHR process re-designEmployee self-service/portal


improve efficiency Administration of outsourced elements

IBM’s response to the global human resource challenge is our W kf d T l t S l ti (WTS) INTEGRATED hWorkforce and Talent Solution (WTS) - an INTEGRATED approach

Leadership

Enabling and Driving

WorkforceStrategy & Planning

Execute Revenue GrowthCost SavingProductivityEfficiency

Execute

Connect

Develop

SourceAttractRecruit

ManagePerformance

Reward &Retention

QualityCustomer Satisfaction

Innovation

Develop

Deploy

RecruitSelect

On-board

Reward &RecognitionSuccession

WorkforceMeasurement


Change & Sustain

28502850 6060 313128502850++Customers

181800

Countries6060++Industries

3131Languages++ 00 ++

Enabling Customer Success gAround the World Since 2001

Million UsersMillion Users4+4+55..© 2009 IBM Corporation14

Million UsersMillion Users4455..

Business Execution Software


The E ec tion GapThe Execution Gap

37% value loss due37% value loss due to breakdown in executionexecution

Results

Strategy Execution TraditionalApplications

© 2009 IBM Corporation16Source – Harvard Business Review, Turning Great Strategy into Great Performance, Mankins and Steele

Execution Software Is the Answer53% Directly & 42% Indirectly

Inadequate or unavailable resources 20%

Poorly communicated strategy14%

Actions required to execute not clearly defined ResultsResults

Unclear accountabilities for execution

12%

11%Organizational silos and

culture blocking executionInadequate performance monitoring

10%8%

Inadequate consequences or rewards for failure or success

Poor senior leadership

U d t tUncommitted leadership

8%

5%7%

2%


Unapproved strategyOther 2% 2%

Source: Harvard Business Review – Turning Great Strategy into Great Performance, Mankins and Steele, July 2005

Kellogg established “Program Go!” to enable HR Transformation.Kellogg established Program Go! to enable HR Transformation.

Good data. Great people. Best decisions.

To get there, we need to attract, develop, engage, and retain leaders and talent.

• Build a talent powerhouse• Develop a recognized leadership brand• Optimize global human resources network• Strengthen culture

It’s all about the Kellogg People Strategy.

g


Kellogg chose IBM and SucessFactors to support HR transformation d i t t ti t h l iand integrate supporting technologies.

HR Transformation ScopeGlobal Design and Americas Implementation

HR Service Delivery Model design and implementation

People Process Redesign and implementation

p

Change management and organization structure design for business partner, COE and shared services organizations

Data Security & Privacy policy and process design

Training strategy & deliveryTraining strategy & delivery

System integration including portal, Knowledge base, ERP, call center technologies and Talent management systems

Vendor Integration - Payroll Benefits and Staffing & RecruitingVendor Integration Payroll, Benefits and Staffing & Recruiting


Kellogg chose IBM and SuccessFactors primarily due to their illi t t ith d f th l /willingness to partner with us and focus on the people/

transformation aspects of the endeavor.

Why IBM?Willingness to partner with Kellogg’s (and not “lead” our effort)

Emphasis on talent management (in addition to enabling technologies)

Why IBM?

p g ( g g )

Broad service and asset offering, including strategic alliances

– Services – process, organization, and system integration

– Process Asset - Leading Practices

– Portal Asset - Lotus Workforce Manager

– Talent Alliance - SuccessFactors

Experience leadership resources

Global delivery capabilities


Kellogg is beginning to realize the benefits of the partnership.

Financial– Increased efficiency in service delivery – Better management of enabling technology

People StrategyPeople Strategy– Employees – direct access to view and update personal and career information– Managers – better acquire and develop talent using enabling tools; direct control over

and easy access to accurate, reliable information– HR – globally consistent practices high quality information clear picture of the talent inHR globally consistent practices, high quality information, clear picture of the talent in

the organization– Kellogg – consistent and fair practices, decision making based on reliable and timely

information, increased efficiency and effectiveness of managers ability to manage talent now and for the futurenow and for the future


It’s your turn! Ask our expert…

Keith MessickSenior Manager of Customer Results & Global ResearchSenior Manager of Customer Results & Global ResearchSuccessFactors, Inc.

W Li dlWarren LindleyVice President, Talent Optimization and HR GovernanceKellogg Company

Carolyn CarlsonStrategy & Transformation Partner

C ( )


International Business Machines Corp. (IBM)

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Talent Management & The New Normal

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