Turning Talent Intelligence into Strategic Advantage

1© SHL 2012

Turning People Intelligence into Strategic Advantage

April 2012

Dr. Ray Glennon, SHL,C. Psychol, AFBPsS

2© SHL 2012

The CEO perspective: Talent is Critical

Q. To what extent do you anticipate changes to any of the following areas of your company?

“Talent is now at the top of the CEO Agenda with 83% of CEO’s anticipating making changes to their talent management strategy in 2011”

PWC, Annual CEO Survey, 2011

83% Talent Management Strategy

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“75% of companies do not have access to the talent data they need to make informed

business decisions”

“75% of companies have visibility into their defined business goals but only 21% know if they have the skills to execute it”

Taleo, Talent Intelligence Report , 2011

People Intelligence: Do you know your critical talent?

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“Today almost all of the 70 million iPhones, 30 million iPads and 59 million other Apple products sold last years were manufactured in other countries. “Why can’t that work come home?”, President Obama asked Apple’s Steve P. Jobs at a dinner in California last February.

“Those jobs aren’t coming back,” Mr. Jobs reportedly said.

It is not just a matter of wages being lower outside the United States….

27th Jan 2012

Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable an option for most Apple products”.

5© SHL 2012

“If you and your head of HR haven’t recently discussed ideas for using data to generate a talent strategy that’s more closely linked to business results

…it’s time to start.”

Using data to get the most from your critical talent

Source: McKinsey Quarterly 2011Source: McKinsey 2011 “Question for your HR chief: Are we using our people data to create value?”

How good is HR at using data to justify its case and drive change?

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SHL Talent Analytics provides data-driven talent insights that improve business performance

What is SHL Talent Analytics?

SHL Talent Analytics benchmarks customers’ talent pools against their competitors and is built upon the largest global database on the potential of people to deliver organisational success.

Answering the question: “How good is my critical talent compared to the marketplace?”

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So, there are analytics ....

Descriptive ...

... tells you where you’ve been

Efficiency ...

... tells you about the time and costof your processes

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Predictive ...

... tells you where you’re going

... and Analytics

Effectiveness...

... tells you what you will achieve when you get there

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Taking people intelligence and turning it into strategic advantage

…can it be done?

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0 1 2 3 4 5 6 7 8 90

25

50

SHL Banking & Finance Benchmark

A banking story

SHL GlobalTop TalentBenchmark

1 The global view

SHL’s benchmark comparisons are considered within the context of our global top talent benchmark…

In this case, we will compare two large banking organizations

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0 1 2 3 4 5 6 7 8 90

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50


A banking story


There is less “Leading & Deciding” in Banking and Finance than there is in the Global Benchmark

There is more “Enterprising & Performing” in Banking and Finance than there is in the Global Benchmark

2 The industry view

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Lead

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oope

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Inte

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& Pre

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Analy

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terp

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xecu

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Adapt

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Enter

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Bank A Bank BSHL Banking & Finance Benchmark

A banking story


3 The organisation view

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Lead

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Inte

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Analy

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Bank A Bank B SHL Banking & Finance Benchmark

A banking story


Bank B was also in an upper quartile ...

Bank A was in the upper quartile globallyfor profits for 2010

... for customer complaints

3 The organisation view

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SHL Talent Analytics

What’s in the SHL Database?

• 80+ million data points

25 million every year

• 30 countries

• 37 industry sectors

• 31 business functions

• 5 job levels

Each customer engagement is based on a subset of this data depending

on the clients talent-related questions……

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Lead

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Suppo

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Direct Applicants

Agency Sourced Applicants


Evaluating effectiveness by candidate source

• Direct candidates appear stronger on five dimensions1

• Candidates supplied by agencies fall short of the benchmarks for Creating & Conceptualizing; Organising & Executing; and Enterprising & Performing2

Note: Benchmark for all applicants against the banking and finance industry globally.

% Top talent

1

11 1

1

2

2


can be used to compare

recruiting sources

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Lead

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Applicants

Invited to Assessment Centre

Interviewed

Hired


This recruitment process is screening out Leading & Deciding and Enterprising & Performing strength…• Is the focus on acquiring talent that “delivers” high

enough among recruitment decision-makers?1

• The biggest step change is occurring in your assessment centres; look here first

Overall process effectiveness: Competency

Notes: Benchmark for all applicants reaching each stage in the recruitment process against the banking and finance industry globally. Where bars increase across stages, stronger talent is being acquired. Where the bars decrease across stages, the level of talent is being reduced at successive stages.

% Top talent

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Capability profile through the recruitment process


can be used to evaluate

recruiting stages

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6%27% 14%

Leadership Effectiveness

• You have limited transformational leadership strength in IT which will limit the impact of technology on the company strategy1

• Probable leadership/succession gap is confirmed by this view

• Your IT group is probably overly focused on processes and meeting targets2

Overall leadership potential

Note: Benchmark for all IT hires against managers and professionals in IT functions globally. See Appendix for definitions of leadership potential implied by the 3x3 matrix

At their best when working in a well defined role with clear responsibilities and expectations

At their best in a high profile role where they can drive innovation and change

At their best in a role responsible for the implementation of processes and the delivery of targets

At their best in a role where they can frame, lead and deliver company wide strategy, working closely with and influencing key stakeholders

Transactional

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SHL IT Leadership Benchmark

-3%

-4%

-11%

-7%-3%

-17%

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IT Leaders

2


can be used to evalute

leadership potential

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“What is the bench-strength of my succession pool compared to the best in the marketplace?”

“Where do I need to focus the development of my managers to raise them above the industry standard?”

“How does the calibre of my graduate applicants compare to the market?”

“How does my leadership team stack up against others in my sector?”

“At which stage(s) of the recruitment process am I losing my best candidates?”

“How strong is the managerial talent I am recruiting compared to industry sector benchmarks?”

Answering critical talent questions

SHL Talent Analytics provides rigorous and objective answers to a broad range of talent-related questions, such as:

Turning Talent Intelligence into Strategic Advantage

Business

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