Reinventing Talent Management E-Book

William A. Schiemann

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 353

Veröffentlichungsjahr: 2009

Beschreibung

Praise for Reinventing Talent Management

"Bill Schiemann's book is a comprehensive presentation of the need to better understand, measure, and increase organizational people equity. It clearly transforms concepts that have historically been considered less tangible into actionable imperatives. Today more than ever, it's essential that leadership maximizes alignment, capabilities, and engagement within their organizations."
—Paul Schultz, President and COO, Jack in the Box Inc.

"Reinventing Talent Management has arrived just in time. Given the challenging times we face today, recruiting and retaining the very best people is now more important than ever. Bill has developed a unique innovative framework on how to do this, as well as provided a broad array of practical approaches to putting the theory into action."
—Keith Lawrence, Director, Human Resources, Procter & Gamble

"Reinventing Talent Management is an outstanding blend of research and practice. It reports compelling research on the value of investing in talent and offers specific recommendations on how to develop people equity through alignment, capabilities, and engagement. The book confirms what good people managers do and offers specific guidelines for those wanting to upgrade their people management skills."
—Dave Ulrich, Professor, Ross School of Business, University of Michigan, and Partner, The RBL Group

"Bill makes the case for reinventing talent management and tells us how to do it. The book is loaded with good examples and must-take actions that lead to a winning talent management strategy."
—Edward E. Lawler III, founder and Director, Center for Effective Organizations, Marshall School of Business, University of Southern California, and author of Talent: Making People Your Competitive Advantage

"Talent management certainly needs to be reinvented-this book does it! Read, learn, redo!"
—Dr. Richard Beatty, Professor of Human Resource Management, Rutgers University

"Reinventing Talent Management provides an accessible framework that offers pragmatic ways to better understand how investments in human capital and talent can be measured and linked to financial returns."
—Dr. John Boudreau, Professor and Research Director, Center for Effective Organizations, Marshall School of Business, University of Southern California

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

Foreword

Preface

The Economic Crisis

Acknowledgements

SECTION I - New Rules in a Changing World

Chapter 1 - The Talent Challenge

Bob’s Service Star

Large Corporations Face Perhaps Even Greater Challenges

The Perfect Storm

A Promising New Path

Chapter 2 - People Equity: What It Is and Why It Matters

People Equity: So What?

People Equity: Three Pieces to the Puzzle

Reality Testing People Equity Impact

Growing Shareholder Value and People Equity

The Impact of Low People Equity

People Equity Profiles

Conclusion

Chapter 3 - How to Manage People Equity

The Five Drivers of People Equity

The Four Enablers of People Equity

Predictability

Summary

SECTION II - Measuring the Unmeasurable

Chapter 4 - Measuring People Equity

The Value of Measuring People Equity

How to Measure People Equity

Assessing Your People Equity

Mining the Organizational Profiles

Variance Matters

Five Actions to Boost People Equity

Connecting the Dots

Conclusion

Action Tips: What Can I Do Tomorrow?

Chapter 5 - ACE and Resource Allocation

How Much Is Enough?

Action Tips: What Can I Do Tomorrow?

SECTION III - Optimizing Talent

People Equity and Talent Optimization

Chapter 6 - Aligning Strategy, Culture, and Talent

Big or Small

What Does the Evidence Say?

Three Key Alignment Elements

What Drives Alignment?

Outreach Airlines: From Vision to Results

Action Tips: What Can I Do Tomorrow?

Chapter 7 - Capabilities: Fuel for Growing Customer Value

Why Capabilities Are Critical

Assess Your Capabilities

Getting a Grip on Your C—Combing for Causes

Corralling the Nine Capability Killers

Capabilities in Closing

Action Tips: What Can I Do Tomorrow?

Chapter 8 - Getting Engaged

Is Engagement Important?

Defining Engagement

What’s Your Engagement Level?

Examining your E—Excavating for Root Causes

Encircling the Major Engagement Killers

What Is the Role of Communications?

Is Engagement Enough?

Engagement in Closing

Action Tips: What Can I Do Tomorrow?

SECTION IV - Managing the Talent Life Cycle

Making Talent Management Decisions

Managing the Talent Life Cycle

What’s at Stake?

Chapter 9 - Finding Fit

Strategic Talent Sourcing

Improving the Selection Process

Measuring The Impact of Your Talent Acquisition Process

Action Items: What Can I Do Tomorrow?

Chapter 10 - First Impressions

The Role of ACE in Managing Acculturation

Socialization Factors

Role of the Supervisor or Coach

What about Internal Hires—Transfers?

Intervening at the Right Time

Action Items: What Can I Do Tomorrow?

Chapter 11 - Growing Your Talent Reservoir

How Deep Is Your Talent Reservoir?

Developing Leader and Supervisory Capabilities

People Equity and Succession Planning

People Equity and Leader Transition

Summary of Talent Development

Action Tips: What Can I Do Tomorrow?

Chapter 12 - Retaining Top Talent in Good Times and Bad

Retain the Best; Lose the Rest

Impact of the Economy

Managing Retention

Action Tips: What Can I Do Tomorrow?

The Road Ahead

Appendix - EXERCISE: IMPACT OF TRENDS ON YOUR TALENT MANAGEMENT

Worksheet

Notes

Index

Copyright © 2009 by The Metrus Group, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data

Schiemann, William.

Reinventing talent management : how to maximize performance in the new marketplace /

William Schiemann.

p. cm.

Includes bibliographical references.

eISBN : 978-0-470-52635-4

1. Personnel management. 2. Ability. 3. Performance. I. Title.

HF5549.S224 2009

658.3’ 14-dc22 2009008839

To Valeria, Wotan, and my family for their unconditional love and to theMetrus team for their extraordinary support.

Foreword

“Our people are our most important asset”

This is the management mantra I have heard during my career of more than 30 years in the field of human resource management. But where this phrase was once rattled off by executives and managers as trite and meaningless rhetoric (because they never really meant or acted on it), today it’s quite different. Today, this phrase is uttered in hushed and fearful tones by executives and managers acknowledging and contemplating the challenges of delivering value within their organization through people. In short, the rhetoric has been taken over by the reality.

As business and organizational leaders have confronted this new reality, they have looked for new ways to better understand, measure, and manage this important asset. While they may understand intuitively the importance of their talent strategies to organizational success, they yearn for a model that allows them to conceptualize, measure their progress, and leverage this asset to add greater value.

For many, the push for a new model arose in the context of rapid growth and change in their organizations or industries. How do we get a handle on the value of the growing enterprise when so much of it is related to the talent we find, keep, or lose? But the value of such a model becomes even more important during significant economic turmoil. How can we fully value our organizations in a chaotic environment when we can’t really assess the equity we’ve built through our talent management? How do we make decisions regarding our very survival when we don’t fully appreciate whether or not we can execute new strategies with the talent we have, and don’t fully appreciate the talent we’ll need?

With this book, Dr. Schiemann has provided such a model. The book represents a fresh approach to talent management by presenting a fresh concept in the People Equity framework.

Based on sound research, insight and experience garnered from more than 70 academics, C-suite executives, practitioners, and talent Thought Leaders, Bill has provided information, tools and ideas for challenging old ways of thinking. And thankfully, yours doesn’t have to be a huge organization to apply them. In short, the People Equity framework provides the human resource management field with a model similar to what Process Re-engineering, the Balanced Scorecard, and Six Sigma did for other elements of the business.

In a global economy with periods of booms and bust, Bill’s People Equity framework is a welcome addition to the knowledge we’ll all need to survive and thrive.

—Susan R. Meisinger, SPHR, JD Retired CEO, Society for Human Resource Management

Preface

I am writing this book for three reasons:

1. Many companies are leaving a lot of value on the table—unfocused activities, wasted labor resources, skill mismatches, service shortfalls, underused technology, low innovation, and disengaged workers—all because they don’t have an adequate understanding of the full set of factors that drive peak performance in this newly emerging market. In the past, organizations could afford “human spillage” as one executive put it and still succeed in the marketplace; those firms are in the process of being weeded out of the market as you are reading this. Those who can leverage their talent better than their competition will have a significant advantage.

2. Few organizations are measuring their talent management effectiveness well. Measures are woefully inadequate in this nascent field. At the local level, managers often lead by intuition or by time-tested experimentation. However, few have gauges—like the fuel gauge on your automobile dashboard—telling them how full or empty their human capital is. Unfortunately, “empty” is discovered only after there is a talent drain or customers go elsewhere.

3. Talent management is not just a business issue; it’s also a societal issue—How will society engage talented people in organizational life? How will organizations attract and retain these talented people in a world of increasing competition for the ‘right’ talent? What is it about organizational life that can be not only financially rewarding, but also fulfilling?

This book is equally applicable to both large and small organizations, for profit or not, regulated or unregulated, local or global, public or private, service or manufacturing. Why? Talent is a core ingredient to all of these organizations—a necessity for success. For example, while you may think of an organization such as the Girl Scouts as simply an important local developmental experience for your daughter, the Girl Scouts is also an organization that employs over 9,500 people, has 109 boards of directors for regional councils, and has over 900,000 volunteers, all supporting over 2.5 million Girl Scouts. What may have appeared to the casual observer as a local community group is also a major business with all the attendant challenges that large organizations encounter: managing a global and local brand, finding the best talent, managing values, acculturating it, developing skills, optimizing talent, and retaining the best talent. And the Girl Scouts must do that with employees, part-timers, volunteers, and parental oversight; that is, they cannot command the direction, the values, the work ethic—no, they must set a direction and then engage those stakeholders in the mission.

The Girl Scouts are not alone. When you stop to think about it, there are thousands of other organizations that face the same challenges, whether they are large or small—finding, growing, and retaining the best talent that will be a good match for their particular organization. And conversely, it is in the best interest of the individual to seek, find, evaluate, engage, and stay with an organization that is enabling that person to increase his value—to grow monetarily, intellectually, socially, and emotionally.

The Economic Crisis

When we began the research for this book, many of the people we interviewed were focused on the emerging talent shortage taking place in a number of industries, functions, and geographies. As the book was being finished, the market had drastically changed because of the economic recession in many parts of the world. And yet, the most successful organizations that we studied were still intently focused on doing a better job in managing talent. Why? As you will discover throughout the book, these organizations have come to realize that talent management is a key competitive advantage regardless of the economy. In fact, for many of these firms, this lesson was driven home even more effectively during prior recessions. For some, it truly meant survival.

For others, it meant positioning to become dominant leaders in the next growth wave. When economies rebound in the next few years, the fight for the ‘right’ talent will be ferocious—not just challenging or tough, but ferocious! No, short-term economics will not determine the winners; they will be determined by their ongoing ability to manage talent more effectively than their competition does.

With Baby Boomers and their knowledge and values departing (albeit at a slower rate than anticipated before the economic downturn of late 2008), a new set of workers with different values, skills, and expectations will replace them, creating new challenges.

The book is intended for a variety of audiences:

• Anyone who has responsible for leading people. The principles discussed will significantly help managers of people be more effective in achieving their goals through more effective management of people.

• Finance professionals, such as chief financial officers and controllers, who are being called upon to measure human capital, and the value it contributes.

• Those who are responsible for strategic planning and execution. The principles and approaches of this book will provide invaluable help in developing people strategies and integrating them into the overall business strategy.

• Anyone interested in or responsible for succession planning and leadership development. The elements of this book provide insight into why high potential leaders falter, and methods for assessing and improving leadership effectiveness.

• Anyone who is teaching or is a student of human resources or related disciplines, such as organizational behavior, productivity and performance, organizational psychology, and labor relations.

I hope that the People Equity model will provide readers with new ways to think about talent management, and about the factors that enhance it. I have provided some ideas and tools to enable readers to apply the new thinking to their own organization. There are also references throughout the book to additional information and tools, which can be found at reinventingtalentmanagement.com. Finally, I hope that the concept of true value creation through organization talent is one that will help companies work through difficult environments and emerge stronger than ever.

Acknowledgments

I began writing this book during an economic boom and completed the task as companies around the world continued to battle the effects of a severe economic downturn. As market conditions deteriorated, the central People Equity concept of this book was put to a severe test. I am indebted to the diverse pool of contributors whom you will encounter in the pages that follow for their insights in helping me shape and reshape the core set of ideas presented in Reinventing Talent Management. Those ideas have taken on greater force and value for managing talent regardless of the vagaries of economic cycles.

While I take sole responsibility for the content of this work, it would not have been possible without the support from so many wise and insightful people who care deeply about this subject.

First, I want to thank the many human capital thought leaders—over 70 executive, academic and association leaders—who have added rich cases, insightful research findings, and a wealth of practical applications. In addition to them, I would also like to thank those who reviewed and provided numerous valuable suggestions to earlier drafts of the book, particularly the major contributions of John Boudreau, Wayne Cascio, Judy Clark, Edward Gubman, Peter Hom, Mark Huselid, Robert Liden, Jeffrey Marcus, Richard Reilly, Joseph Rosse, Dean Spitzer and Howard Winkler.

Emily Smith and Lena Ogan contributed many hours of research support that yielded countless great cases and information included in this book. Cristina Matos-Kober, Bret Weinshank, and Jerry Seibert were invaluable in providing research and database information from the Metrus Institute that helped to quantify many of the issues discussed in the book. I owe enormous gratitude to Susan Bershad, John Lingle, and Brian Morgan for their insightful input to the book’s concepts and ideas. I’m also indebted to my editor, Lauren Lynch, for her early support of the concept and her valuable insights.

And finally, this book would not have been possible without the enormous dedication of three people. The first, Peter Tobia, has served as both the godfather of editing and my publicist and literary agent for longer than either of us can remember. The second, Colette Tarsan, has been the organizing force that has kept me on track through the long days (and nights) of planning, interviewing, writing, and editing of the book. She worked tirelessly to ensure the success of this project, and I owe her a huge debt of gratitude. And finally, to my wife Valeria, who has given me unwavering support, taking on some of my roles at the office, providing innovative ideas for the organization of the book, and motivating me to stretch to new heights during the toughest hours of writing. This group has been my lifeline for the past year. I can’t thank each of you enough!

SECTION I

New Rules in a Changing World

This book is about the lifeblood of organizations: people and value creation. I have been particularly attracted to this subject because of its profound effect on the quality of life for individuals, organizations, and even civilizations. Countries have risen and fallen based on value delivered. We have witnessed marginal organizations, including some great brands, being eliminated in the recent economic recession, and individuals have either been displaced or are thriving in new roles based on their value contribution. Whether you think about it daily or not, most of us go through life engaging in activities that create more or less value for ourselves and others. We go to school to increase our personal knowledge and our potential value to institutions of various types. We join social groups to become more socially adept—or valuable—to those groups and to satisfy our own social needs. We join sports teams to grow physically and to become better team members. And we go to work to find value of various types: monetary, social, intellectual, artistic, competencies, increased self-worth, and so forth.

Organizations, like living organisms, are also value-producing entities. A symbiosis between organizations and people has existed since early time: Organizations depend on the effectiveness of their people to create value in the market while at the same time people depend on organizations not only for their wages, but to increase their sense of self-worth. Given the time that most people spend with their work organizations, these organizations can’t help but be a major influence on their employees’ identity, sense of fulfillment, and overall satisfaction.

For much of the twentieth century, this relationship was understood and predictable. But over the last decade or more, this individual-organization relationship is changing due to economic, cultural, technological, and political forces that require new ways of thinking about talent. Certainly the most recent recession has laid open many false assumptions about leaders, values, and the world of work. Copycat, vanilla approaches to talent management created many mediocre firms that were talent-depleted or bankrupt. Many were simply trying to follow the “best practices” formulas of the apparently successful firms without fully understanding the connections with their own unique strategy. Some of those are now gone because of gaps in their ability to attract top performers, their approaches to productivity, or their ability to retain the best performers. Their middling approach to talent management was adequate in booming markets when all boats were rising, but it has been fatal in a major market downturn or in environments with serious competition. I have seen this in the betrayed, blank faces of employees in organizational ghost towns.

And yet in other organizations, I find bright-eyed, exuberant, and engaged employees. The difference is both in value creation and the match between individuals and organizations with the means to accomplish that. Firms that have already positioned their talent for tough competition; created hungrier, more engaged and talented people; and developed winning cultures that enabled them to grow even closer during the downturn have been the most successful. Those organizations have moved beyond the placards, wallet cards, and banners to vibrant talent-driven cultures.

Value creation requires people who focus on agreed-upon goals, who bring knowledge and skills that will enable the organization to satisfy its customers, and who are willing to put in whatever it takes to help the organization succeed. What are the ingredients that enable this to happen? What is it that outstanding organizational leaders are doing to attract and retain superior performers who are willing to work tirelessly for the organization? What systems and tools are in their talent arsenals that enable them to leverage their human capital investments far better than most? And, how do individuals best grow their personal value by affiliating with the right kinds of organizations?

We know how to address these issues—and we can no longer waste the valuable resource represented in our talent. At the Metrus Institute, we have witnessed a wide performance spectrum and have discovered some underlying factors that differentiate the winners from all others. There is no magic bullet, but there are proven principles. Some of the principles have been around for a long time; others are new, based on emerging challenges in the new marketplace.

The newly emerging concept of People Equity described in the pages that follow is a useful framework for strategy makers and talent implementers alike. This framework will:

• Guide understanding of what optimizes workforce performance and capacity, and hence the return on talent investments

• Help senior leaders align talent with their business strategy, ensuring that sufficient talent exists in the right configurations to compete in the marketplace

• Enable talent leaders to do a better job of attracting, selecting, and retaining the best talent

• Enable Human Resources professionals to be more successful in building and executing their talent-related programs and processes, thereby enabling them to justify human capital investments more effectively

• Provide a structured set of tools that senior leaders can use to assess their current and potential leadership talent, and enable them to target resources to close leadership talent gaps

• Provide a playbook for managers to grow and develop as leaders of people, giving them the key success ingredients in managing their employees

• Give employees and team members a better sense of how personal and organizational value dovetails, and what they need to do differently to become fulfilled in their roles in a variety of organizations

Organizational Darwinism will favor workforces that are highly aligned and efficient in executing strategy, that have the right capabilities to meet customer expectations, and that are highly engaged in the mission of the organization. Having a highly productive culture is no guarantee of success, but the reverse is a guarantee of failure.

Let’s explore the possibilities . . .

1

The Talent Challenge

“While some businesses skated by with mediocre talent management in the past, they will no longer be able to do so, given the fiercely competitive world ahead.”

—Susan Meisinger, retired CEO, Society for Human Resource Management

Think about any important goal in your life—getting an A in an important course, seeing your child graduate, completing a successful journey, getting that promotion, learning a new language, mastering a favorite hobby, even getting your golf handicap to levels that your friends envy. Why do some people seem to breeze through these life hurdles while others struggle? Is there some secret that they possess, or are they just lucky?