Talent Strategies

Alice KwanMichael Kauer

Upon completion of this course, you should be able to: • Understand the global workforce trends and why having

a talent strategy is important• Understand Deloitte's direction and how we are

planning to go to market with this service offering• Understand Deloitte's point of view on Talent Strategies• Understand our OPP approach to developing a talent

strategy• Apply the tools to develop a talent strategy• Identify Talent Strategies opportunities at clients • Know where to go to get additional information

Learning Objectives for Today

Table of Contents

• Introduction• Why this is Important• Deloitte’s Direction – What the Firm is Doing

about It• Human Capital’s Approach• Deloitte’s Talent Management POV

o Frameworko Approach

• Intro to the Exercise• Contacts

Talent Strategies

Introduction

How many of you have participated in the design or implementation of a Talent Management initiative?

Question

What is Talent Management?

Question

What is a Talent Strategy?

What is Talent Strategies?

Talent Management is the integrated set of processes, programs, and technologies designed to Develop, Deploy, and Connect critical workforce segments and critical skill sets to drive business priorities. A Talent Strategy is the output of the work we do in Talent Management.

Definitions

Talent Strategies is one of OPP’s service offerings that will enable clients to have the talent required to deliver the business strategy.

What are Critical Workforce Segments?

Question

Definition

• Critical workforce segments are the internal groups that drive the organization's success (typically defined as top or bottom line impact)o That is, groups that are driving a disproportionate share of

key business outcomes• The critical talent of an organization generally

represents a distinct minority of the total payroll

Talent Strategies

Why This is Important

Drivers of the need for Talent Strategies

• Quality leadership is a major determinant of long-term successo Aging executive population coupled with rapid consolidation that often

eliminates traditional preparatory positions• Workforce composition is changing

o An aging and increasingly diverse workforce puts more pressure on organizations to recruit young talent and find new ways to source diverse employee populations

• Employee loyalty and tenure is decreasingo Management turnover is expected to exceed 20%o In “traditional” firms, over 40% of managers are eligible to retire soon

• Business challenges and the skills required are changingo More than 80% of US firms say they face a shortage of qualified

machinists, craft workers, and technicians.o NASA projects that 2 million Science and Engineering (S&E) workers will

retire between 1998 and 2008 – only 5% of the college students earns an S&E degree

• A small percentage of the workforce make a disproportionate contribution to the bottom line

Talent Strategies

Deloitte’s Direction

Talent Management PRD

Team

Client Validation

Talent Strategies POV and Service

Offering

InternalRollout O&PP

AdoptionExternal Rollout

Industry POVs

Global Support Materials

Pieces of the Talent Strategies Rollout Plan

Practitioner Training

The Firm and OPP are Working Closely to Deliver the Talent Strategies Hot Topic

• Five-part series by Deloitte Research offers fresh thinking on talent management

• Two big catalysts: o Looming demographic shiftso Need to achieve higher returns on labor / knowledge work (typically firms’

largest investment)• Key objectives

o Present differentiated perspective o Heighten CxO awareness of demographic trends and implicationso Challenge conventional thinking / typical response to tight labor marketso Present differentiated perspectiveo Generate interest in (an evolving) comprehensive client service offering

• Target Audienceo External: CEO, CFO + Sr. HR Executive + other C-Suite o Internal: H Cap, S&O, cross-industry, HR, cross-regions

US: Jeff Summer, Bill Chafetz, Jeff Schwartz EMEA: Brett Walsh, Jörg Schiele A Pac: Dick Kleinert Global: Ainar Aijala, Jim Wall

o Global markets: Germany, Japan, Italy, Spain, UK, US, Canada, Switzerland, Austria, Netherlands, Australia, S Africa, China

It’s 2008: Do you Know Where your Talent Is?Overview

• Why Acquisition and Retention Strategies Don’t Work (1Q ‘05)o Why do current demographic trends require a fundamentally different approach to talent management?  o This piece serves as a foundation for rest of the series

• Deploying Talent Across the Global Enterprise (2-3Q ‘05)o Organizations increasingly need an enterprise-wide perspective of their talent needs and capabilities

(current and projected)o How do you build enterprise-wide talent models to achieve market flexibility? What is the role of

offshoring?

• Developing the Future Workforce (2-3Q ‘05)o Current demographic shifts, coupled with the speed and complexity of business, suggest that

organizations must ramp up their development capabilities. o How do orgs create this capacity?  How does effective development occur?

• Connecting the Global Workforce (3-4Q ‘05)o Knowledge workers are fast becoming intertwined in complex networks of global organizations, alliances,

partnerships, where virtual relationships far outnumber face-to-face.o What must leaders know about the nature of these networks and their interdependencies? What tools and

approaches can they apply to understand and bolster the networks through which work gets done?

• Building Global Leadership Across the Talent Enterprise (3-4Q ‘05)o What leadership capabilities are required to make all this happen?

It’s 2008: Do you Know Where your Talent Is?The Series – Five Briefings

• Talent markets will become tighter• Traditional response is to focus on

“acquisition and retention”• This is an inappropriate response

o Costly o Focus is on metrics or outcomeso Command and control mentalityo Doesn’t target drivers of

employee commitment / engagement

• Instead, need to build strategies around things that matter to critical segments:o Development or growtho Deployment on jobs and projects

that engage themo Connection to others (networks

and quality of interactions)

It’s 2008: Do you Know Where your Talent Is?Key Messages

It’s 2008: Do you Know Where your Talent Is?Rollout

• Officially launch to the media in January 2005o We will be providing a range of supporting materials such

as sample press releases, sample client letters, PowerPoint presentations, and media FAQs

o These materials will be posted on Marketplace and Deloitte Resources as they become available

• The Talent 2008 paper is now available on:o Marketplace

(https://marketplace.deloitte.com)o Deloitte Resources

(https://www.deloitteresources.com/pgContent.aspx?cid=44339&sid=2935)

Talent Strategies

Human Capital Approach

• Human Capital recognizes the strategic business implications of the workforce trends and has made Talent Strategies one of three Hot Service for O&PP

• Resources and investment is being committed to develop compelling thoughtware, tools, and training

• Human Capital has decided to focus Talent Strategies in six industries

• Partnering with S&O and other service areas to develop industry segment specific POVs

• Partners/Directors owning creation of POVs• Working with industry leaders to get buy-in and push out to

GSR/SR teams

Human Capital Approach to the Opportunity

Industry Specific Points of Views

• National O&PP will focus on creating industry-specific POVs in industry segments where we have significant client relationships:o HealthCare Life Science

Life Sciences (Alice Kwan / Shoma Chatterjee)o Energy

Oil & Gas (Jim Sowers / Sarah Woody)o Public Sector

Federal (Tim Garmager / Kirk White)o Manufacturing

Process Manufacturing (Tim Short)o Financial Services

Insurance (Mike Evangelides / Andy Leokopoulos)o Consumer Business

Consumer Products (Bill Chafetz / Alan Schnur)

Talent Strategies

Deloitte’s POV

Our Point-of-ViewThe Talent Game is Changing

• Supply-demand: The retirement of Baby Boomers and a looming skill gap will create a supply-demand situation unlike any in history

• Rise of global talent markets o The 20th century saw the rise of customer and financial

markets; talent will be the scarce resource as we enter the 21st century

o Firms will have to source talent needs across global market as local pools of critical talent (e.g., scientists, engineers, and nurses) dwindle

• Nature of work: As knowledge work prevails, firms will have to find new ways of achieving higher returns on their largest investment

• Shifting expectations: Recent statistics suggest that fully half of the workforce is disengaged

Our Point-of-ViewTraditional Talent Management Process

• Traditional approaches:o Do not allow individuals or organizations the flexibility they

need to growo Are costly (firms spend 50 times more on recruiting than

training)o Focus on metrics and outcomes, rather than what really

matters to talento Do not get to the heart of where value is createdo Often are divorced from broader business aims, such as

strategic goals and firm branding

Acquire Deploy Develop

The Traditional Talent Management Process

Retain

Our Point-of-ViewTraditional Approaches will not Suffice

• In the 1990s, companies waged the war for talent by offering rich compensation packages and “hot skills” bonuseso Such tactics are easily matched by competitorso Monetary rewards do not sustain interesto “A players” and stars are often first to leaveo Attention and resource is on recruiting, not engaging

employees

Our Point-of-ViewWe need a Shift in Mindset

• Need to build strategies around things that matter to critical talent:o Their development or growth (recognizing that training is

a small part)o Their deployment onto jobs or projects that engage them

(creating the roles and conditions that tap their greatest potential)

o Their connection to key others (focusing on the networks and quality of interactions that they need to succeed)

• By focusing on the development, deployment, and connection, the attraction and retention of critical talent largely take care of themselves

Develop

Connect

Deploy

Performance

Capability

Alignment

Commitment

Connect focuses on how individuals interact and perform together.

Develop means helping employees build the capabilities they need to achieve personal and business goals.

Deploy means providing employees with the experiences they need to perform to the full extent of their abilities.

Develop-Deploy-Connect Cycle

Enabled by HumanCapital Programs

Source: HR Executive Review: Implementing the New Employment Compact (New York: Conference Board, 1997)

What Employees Expect from Companies

Improving Talent Strategies

• Rather than focus on acquiring and retaining talent, talent savvy organizations support their key people on the issues they care about most: o Doing work that engages themo Learning how to do it even bettero Encountering fresh challengeso Interacting with people in positive ways

• The Talent Strategies service offering to helps organizations identify, develop, deploy, and connect their critical talent

Talent Strategies

Framework

Our framework focuses on people implications as a critical element of the business strategy

Framework

Business Priorities

Critical Workforce Segments

Critical Workforce

Trends

Identify/Rationalize/Validate

Integrated Talent Management Strategy

Recalibrate Human Capital Programs

o Performance Management

o Rewards & Recognition

o Workforce Movement

o Knowledge Retention

o Organizational Learning

Develop

Deploy ConnectAlignment

CommitmentCapability

Manage Performance

Enabled by HumanCapital Programs

Mapping Human Capital Programs to DDC

Develop, Deploy, and Connect: Linkages to Human Capital Programs

Deploy

Conct

Devlp

Devlp

Devlp

Human Capital Programs

Talent Strategies

Approach

Step 1: Identify Business Priorities, Identify Critical Workforce Trends and Segments

• Understand the organization’s business priorities in order to identify the people implications that will directly impact business objectives

• Identify those segments of the workforce that disproportionately contribute to the success of an organization

• Identify industry specific workforce trends that have a significant impact on critical workforce segments

Step 2: Executive Diagnostic Tool

Each dimension covered in the diagnostic includes

a formal definition to “anchor” and guide the

questions

One simple tool to begin a conversation about Talent

Management, based on the work of Deloitte Research

Identifies sample materials to request related to each section of the diagnostic

Diagnostic questions probe key com-ponents of

effective talent management

• Stretch assignments and job rotations

• Mentoring/Coaching• Networks• Training

Embedded in the questions are queries as to effectiveness of

Talent Management dimensions and their contribution to the organization’s growth and

innovation

Diagnostic Anchorso Obtain qualitative data

and analyze in a quantitative manner

o Consistent rating scale across dimensions

o Consistent areas of focus

o Diagnostic will inform the development of the prioritization roadmap

A consistent 3 point rating scale allows for the evaluation of each

area within a given dimension and informs

the SWOT analysis

Rating Scale

Steps 3 – 5: Informing the Roadmap

Step 3: The Diagnostic Summary categorizes the results into 4 buckets based on industry trends:• Strengths• Weaknesses• Opportunities• Threats

Step 4: The Human Capital Program Diagnostic Tool is used to analyze current HC programs with focus on Critical Workforce Segments

Step 5: The Talent Management Prioritization Roadmap provides a detailed outline of actions and business case for the organization to enhance and integrate HC programs over a defined time period

Integrated Talent Management Strategy

Capability

Alignment

Commitment

We then translate the results into three key out-comes of develop, deploy, and connect that directly impact business execution

Diagnostic Dashboard – Summary

Strengths

• Knowledge management practices are tightly linked with the transition of colleagues

• Workforce policies have been documented and communicated across business units

• Lack of a formal, consistent transition process

• Performance management is not evaluated on a regular basis and does not focus on the development of the next generation of leaders

Weaknesses

ThreatsOpportunities

• Leadership development is not integrated with performance management and rewards and recognition, significant source of turnover

• Within Workforce Movements, flexible work arrangements are managed on a exception basis without any consistency

• Integration across recruitment functions has the opportunity to yield higher candidate acceptance rates—leveraging scale

• Communication efforts can better link rewards and recognition to the performance management process, they are consistent just not formally recognized as integrated

Diagnostic Dashboard – Summary

Organizational Learning

Knowledge Retention

Workforce Movement

Rewards & Recognition

Performance Management

Infrastructure Results and Measures

OverallCross Linkages and Integration

Program Details

Program Objectives

There are numerous ways in which the data can be summarized in the Diagnostic Dashboard, such as to provide a view by:

o Critical Workforce Segmento Business Unito Region

Prioritization Roadmap – Sample

Prioritization

Timing

1-3 months 3 to 6 months 6 to 12 months 12 to 24 months

Develop consistent workforce transition

process

Develop linkages to performance management

processes

Extract information for succession

planning purposes

• Activity 1• Activity 2• Activity 3

Implementation of new, integrated performance

management system

Develop succession management metrics

• Activity 1• Activity 2• Activity 3

• Activity 1• Activity 2• Activity 3 • Activity 1

• Activity 2• Activity 3

Implementation of succession

management system

Higher

Lower

• Activity 1• Activity 2• Activity 3

• Activity 1• Activity 2• Activity 3

Talent Strategies

Exercise

Talent Strategies for OPP

What to do…• Review the Chafetz executive diagnostic interview summary• Considering the business issues and critical workforce segments

identified by OPP leadership, how can we implement the Develop-Deploy-Connect components of a talent management strategy in our practice?

• Work with your group to assess the effectiveness of our human capital programs and to identify opportunities for improvement. Be prepared to present to the group your observations, assessment and recommendations / action plan in an organized fashion (e.g. SWOT Analysis, etc.)

When to do it…• Work on the issue: 45 minutes• Report out: 45 minutes

Talent Strategies

Contacts

• Alice Kwan: akwan@deloitte.com+1 (212) 618 4504

• Tina Witney: twitney@deloitte.com+1 (212) 618 4677

• Ken Kunkleman:kkunkleman@deloitte.com+1 (614) 228 4270

• Michael Boedewig: mboedewig@deloitte.com+1 (215) 246 2587

Other O&PP practitioners with significant Talent Strategies involvement: Adrienne Bigley, Jennifer Hand, Pete Harteveld, Michael Kauer, Audrey Mes, Simon Porter, Anne Vlach

OPP U.S. Contacts

• Bill Chafetz:wichafetz@deloitte.com+1 (312) 946 3130

Member ofDeloitte Touche Tohmatsu