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This material is proprietary and exclusively for use by The Talent Strategy Group, LLC and its clients. Any other use is strictly prohibited.

One Page Talent ManagementEliminating Complexity, Adding Value

IQPC 13th Annual Talent Management Summit

September 28. 2010


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This material is proprietary and exclusively for use by The Talent Strategy Group, LLC and its clients. Any other use is strictly

A Quick Introduction

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Corporate Dominance

Build Better Talent,

Faster

Marc EffronPresident

Writing Consulting SpeakingVolunteering


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This material is proprietary and exclusively for use by The Talent Strategy Group, LLC and its clients. Any other use is strictly3

A Short Story . . .


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theres an increasingtension between company

needs and HR's ability to

deliver

DeloittesAligned at theTop study says:

They Dont Think We Can Deliver

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HR executives face acredibility gap when it

comes to executing basic

HR duties

BCGs The Future of HRin Europe says:

They Doubt Our Capabilities

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6/32This material is proprietary and exclusively for use by The Talent Strategy Group, LLC and its clients. Any other use is strictly

The executives criticized HR

professionals forlacking

business knowledge,

observing that many of themworked in a narrow

administrative way rather

than addressing long term

issues such as talent strategy

and workforce planning.

They Challenge Our Knowledge

McKinsey says:

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Even HR Rates Its Performance Low

The New Talent Management

Network

State of Talent Management

2010

Less than 50% rated

assessment, development

planning, engagement and

executive coaching as

Effective

Even lower ratings for

simplicity, transparency and

accountability

2010State of TalentManagement

New Talent Management Network

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Why Isnt It Working?

This seems strange since . . . The science is sound

HR is an educated group

Our leaders want the results

We have formal TM groups focused on this

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1. The behavioral science is sound

2. Talent processes work ifimplemented

3. Line managers are rational

Lets Start with What We Know

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So What If We . . .

Identified the business goal, then:

Start with the

Science

Whats actually proven to achieve the proposed

business goal?

Eliminate

Complexity,

Added Value

How fewsteps and how little data will take us from the

core science to the business outcome?

How can this process/tool help managers make

smarter business decisions? Create some cake-mix?

Create

Accountability

& Transparency

How will managerial accountability be enforced?

How can the process be as transparent as possible?

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One Page Talent Management

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Start with the

Science

Whats actually proven to achieve the proposed

business goal?

Eliminate

Complexity,

Added Value

How fewsteps and how little data will take us from the

core science to the business outcome?

How can this process/tool help managers make

smarter business decisions? Create some cake-mix?

Create

Accountability

& Transparency

How will managerial accountability be enforced?

How can the process be as transparent as possible?

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2

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One Page Talent Management radically

challenges conventional HR & TM thinking. Its

driven by the belief that:

ur practices are academically correct but

practically deficient

nly execution delivers value

wo things matter (maybe three) in each practice

e have added complexity without adding value



Its how we can achieve

the true potential ofhuman resources

OPTM is Not a Design Gimmick . . .

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13/32This material is proprietary and exclusively for use by The Talent Strategy Group LLC and its clients Any other use is strictly

The Attractive Distraction of Complexity

Complexity Creep Product designers love the wow factor

Consumers love the wow factor, until . . .

they actually have to use it Then they prefer point and shoot

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Complexity is easy to make, market and sell, butcomplexity without value does not work



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The Value/Complexity Curve

The Value/Complexity Curve

Effort/Complexity Added

ValueA

ddedfor

Manag

er

Continue

Caution

Stop



OPTM Performance Management

The Science

Harder goals motivate better

Goals should align with self-interest

Too many goals reduces effort on each

So why have . . .

Individual goal

ratings

Fancy goal labelsCompetency-based

assessments

10 different

objectives

Individual goal

weights?15



OPTM Performance Management

Business Objective: Employees understand their goals;theyre fairly evaluated at year end

Maximize value/minimize effort

Reduce complexity No more than four goals, no goal

labels (crutch!), no competency ratings Remove false precision Delete goal ratings and

weightings

Stop doing whats not proven, i.e. employees

participate in goal setting Stop worrying about the scale it doesnt matter!

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OPTM Performance ManagementPerformance Management Plan 2010

AssociateName:Title:

Dept:

Manager:

HR Generalist:Specific,Important (business and employee),

Keep it SIMple

Describe the Associates performance goals for the year (in order of priority)

Metric

Results

A. B.

Summary

Rating

1

2

3

Signature & Date We have agreed to these objectives4

Employee

Manager

At goal setting

Employee

Manager

At year-end review

Goal Metric

Results

Goal Metric

Results

Goal Metric

Results

Comments

A

A performance evaluation was conducted

Describe the two behaviors that are most critical to achieve the goals listed above.

Focus on

essential info

What is the goal?

How will you measure

results?

Was it achieved?

Maintain Balance of

What/How

Behaviors critical to

achieve these goals

Reduce

unnecessary info Rating: 1 5 with no

labels, weighting or

needless complexity

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B

C

D

Goal

Measurable


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Transparency and Accountability

Accountability

Time bomb communications

Series of reminders increasing

in importance Managed distributions

CEO role modeling

Transparency

Full transparency about the

process

Everyone knows their ratings

Distribution, if any, is known

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OPTM Associate Engagement

The Science Higher engagement leads to more employee discretionary

effort that benefits the firm

So why do we see . . .

Questionnaires with 120 questions?

Little focus on making follow up easy?

No individual accountability for improving results?

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OPTM Associate Engagement

Business Objective: Managers take the right actions to

increase engagement

Minimize Complexity

45 questions

Practical, so easy to act on results Add Value

Proprietary algorithm gives managers customized

analysis and recommendations

No additional survey analysis required for a manager totake action

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Engagement Summary Page for: Marketing Asia

What will drive engagement for your group?The items listed are those that are statistically shown to have the most potential to increase overall engagement in your

group. They are not necessarily those items with the lowest scores. You should act on these questions before taking action

on other survey questions.

Your Score:

63%

Your Goal:

3%

Your Change:

4%

Goal Met:

Yes

Results overview

Item ScoreKey drivers (shown in order of priority for action)

#23. My manager sets clear performance goals (My manager) 67%

#12. I understand how my job contributes to the achievement of our business goals (Our

strategy)59%

#4. I have sufficient opportunities for professional development (Growth Opportunities) 55%

Strong Moderate Weak

Which areas have the most power to increase engagement?Many areas contribute to engagement but a few have the greatest power to increase it. The boxes below list the Strong,

Moderate and Low drivers of engagement. These can change from year to year as the needs of our associates change.

Dimension Power

My manager 1.5:1Our strategy 2:1

Growth opps 3:1

Dimension Power Dimension Power

Senior Mgmt. 5:1Team

strength

7:1

Empowerment 7:1

Communication 12:1Diversity 13:1

Work Environ. 13:1

Focus on essential info

What was our improvement goal?

How did my group score?

How did the company score?

How Powerful are The Drivers?

(i.e. where should a manager focushis or her time)

What, specifically should the manager work

on to increase engagement?

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Accountability

In VPs performance plan; set

increase each year

Many VPs rolled thisaccountability down the chart

Transparency

All managers had to share

results within one month of

receiving data; action plan within

two months of receiving data

All data shared at executive

team meeting

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The OPTM 360

The Science Feedback with follow-up often results in improved

behaviors

So why do we see . . .

Meaningless scales (Im a 3 out of 5?)

50, 60, 70 questions?

Long and confusing 360 reports?

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The OPTM 360

Business Objective: Leaders behave in a way that supports

the business strategy

Eliminate Complexity

Minimum number of questions (30)

Unique scale Do much more to Do much less

instantly prioritizes development actions

Add Value

One page report with three priorities

Feedforward Stop, Start or Continue for each priority

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The OPTM 360

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Unique Scale

Do much more Do much less

What should change, not are

you proficient?


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The OPTM 360

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Clear Priorities

Focused on top three

areas for change


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The OPTM 360 Report (OK two pages)

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A one-page summary of your

top three priorities for change

Verbatim advice about

specifically howto change


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Accountability

Formal or informal, but must

have teeth (i.e. considered in

criteria for promotion, moves,

development opportunities)

Transparency

Results shared widely (manager,

HR leader, talent leader, maybe

others)

Behaviors mattered when

making promotion and

movement decisions

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Whos using it/does it work?

Whos already implementing OPTM? American Express,

Avon, IBM, General Mills, MasterCard among others Some hard metrics

Quantitative metrics

Engagement up 60% 72% from 2006 2009

Manager provides timely and helpful feedback: + 20%

Manager plans for my professional development: + 15%

Manager clearly communicates performance goals: + 9%

Qualitative metrics

Line managers saying thank you for new PM process (!)

Executive team said theyre making faster, more fact-based talent decisions Able to make the talent moves we wanted, when we wanted to

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Getting Started

1. Take off your HR hat; forget your hard-earned HR knowledge

2. Select one practice you own or have input to3. Pick your favorite effectiveness driver simplicity,

accountability or transparency

4. Answer the question, What one thing could we do to

increase (simplicity) in the next 30 days?5. If youre ambitious, answer, What one thing could we do to

add more value to a manager in this process?

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Remember, most execs not happy with state of HR & talent

As an HR professional, do you fit better at Company #1 orCompany #2?


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Some Quick and Easy Metrics

Simplicity: Is it embarrassingly easy?

Accountability: Why should they?

Transparency: Can they describe the process?

Do they know the outcomes?

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I Cl i


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In Closing . . . .

Simple works the facts prove it

You can do it others have (and more will soon)

Its in your hands make it happen

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Thank you!

Questions please!

For more information, www.talentstrategygroup.com

[email protected]

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