© Development Dimensions Int’l, Inc., MMVIII. All rights reserved. 1 DDI Canada Webinar Series Part I: Leveraging Testing Tools in a Down Economy July 9 th , 2009
© Development Dimensions Int’l, Inc., MMVIII. All rights reserved.1
DDI Canada Webinar Series
Part I: Leveraging Testing Tools in a Down EconomyJuly 9th, 2009
© Development Dimensions Int’l, Inc., MMVIII. All rights reserved.2
Packard’s Law: No company can grow revenues consistently faster than its ability to get enough of the right people to implement that growth and still become a great company.
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Today’s Speaker
Ryan Heinl, Senior ConsultantDDI CanadaToronto, Ontario Office
Talent Management Execution
• Hiring and Promoting the Best
• Developing Leaders
• Succession Management
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Agenda and Purpose
• The Opportunity• The Business Case• The Tools• What to Expect/Not Expect• Summary• Next Webinar
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The Opportunity
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The Opportunity:New Realities of Business Normal
• More candidates than jobs
• Average turnover as low as 1.6%
• Cost pressure• Reductions/freezes
are prevalent• Acknowledgement of
Talent as Critical
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The Opportunity:Focused Hiring Rules the Day
• Key positions?• Replacement hiring• Hiring in areas with growth• Invest in the long term
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The Opportunity: The Candidates
• More of them• More aggressive• More variety• % of talent is the
same
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30%
The Opportunity: Your Competitors
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The Business Case
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20% development
80% selection80% selection
Selection trumps development
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The Business Case… The 3 Hiring ‘Profit’ Factors
1. Hiring Process2. Ramp-Up3. Productivity
Costs are triggered by • Growth• Turnover
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Sizing Up the Opportunity
Average sales consultant 1 yr goal $1 million
Time to Productivity• 9 months X $83,000 = $750,000• Reduce to 5 months = Cost savings $335,000
Productivity Level• High performing sales consultant = $1.4 million• 10 more than last year = $4 million
How do we do this?
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• Top as Compared to Low SII Scorers:– Total Sales Revenue 48% Higher– Sales Goal Achievement 15% to 29% Higher– Gross Production 28% Higher– Closed 18% to 22% more New Sales– 42% Lower Turnover Rate (18% vs. 31%)– Made 21% more Sales Calls– Customer Satisfaction Rates 8% Higher– Met 8% More of their Deadlines
What if you had a testing tool that did this?
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The Tools
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Screening vs. TestingScreening• Short and basic• Focused on experiences• Technical knowledge• Minimum requirements• No comparison to other
candidates
Testing• More in depth• Level of capability evaluation• Comparison to other
candidates• Expected relationship between
test score and performance
Depth of Evaluation and Certainty of Decision
SCREEN TEST INTERVIEW WORK SAMPLE
ASSESSMENT CENTER
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Everyone’s Question
What’s the best test?
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Know What You Are MeasuringAND the Best Tool for It
What people know
Technical and/or professional information needed to successfully perform job activities
What people have done
Educational and work achievements needed to successfully perform job activities
What people can do
A cluster of behaviors performed on a job
Who people are
Personal dispositions and motivations that relate to job satisfaction, job success or failure
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What Do they Have in Common?
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Selection Funnel:Test Earlier than Later
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Design System: Screening and Testing
SalesTeam
MemberCustomer Service
Professional Leader
Sales Insight Inventory
Team Member Career Battery
Customer Service Career Battery
Professional Career Battery
Leadership Insight Inventory
Sales Career Battery
High Fidelity Production Simulation
Leader Career Battery
Sales Readiness Assessment
Leadership Readiness Assessment
Technical testing including computer skills, accounting knowledge, technology knowledge, typing, reading and writing ability (over 800 technical testing options)
Sales Production Service Professional Leaders
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SII Measurement Areas
What Is Measured?What is Predicted?Sales Skills
Sales Judgment(Thinking and Reasoning)
Sales Disposition(Personality)
Effective Approaches(Past Experience)
Sales Situational JudgmentConsultative Sales JudgmentSales Ability/Persuasiveness
Retains FocusDrives Toward SuccessEngages PeopleSustains Positive OutlookShows DisciplineTakes a Creative Approach
Demonstrated InitiativeConsultative Approach
• Devising Sales Approaches and Solutions
• Expanding & Exploring Opportunities• Assignment Management• Active Learning
• Compelling Communication• Sustaining Customer Satisfaction• Sales Disposition• Demonstrating Business Value
•Building Trusting Relationships•Demonstrating Business Value•Compelling Communication
SII Measurement and Prediction
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Keep It Simple
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Keep It Simple
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Keep It Simple
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Keep It Simple
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Simple, Valued, Report
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SII Predicted Outcomes
Motivation
• Adaptability
• Initiative
• Integrity
• High Standards
• Sales Disposition
• Stress Tolerance
Ability
• Learning Ability
• Sales Approaches
• Supporting Sale Implementation
Interpersonal
• Building Customer Loyalty
• Building networks
• Compelling Communication
• Sales Call Facilitation
Bottom Line
• Quota Achievement
• Prospecting
• Account Expansion
• Sales Activity
• Customer Sat
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LII Measurement Areas
What Is Measured? What is Predicted?
Leadership Judgment(Thinking and Reasoning)
Leadership Disposition(Personality)
Effective Approaches(Past Experience)
Leadership Situation JudgmentCoaching JudgmentDelegation Judgment
Drives toward successEngages peopleInspires confidenceLearning agilityShows disciplineSustains a positive outlook
Coaching experiencePast demonstrated initiativePast demonstrated leadership
• Devising Sales Approaches and Solutions
• Expanding & Exploring Opportunities• Assignment Management• Active Learning
• Compelling Communication• Sustaining Customer Satisfaction• Sales Disposition• Demonstrating Business Value
•Building Trusting Relationships•Demonstrating Business Value•Compelling Communication
Build Your BenchHire/Select for the Future
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Build Your BenchHire/Select for the Future
50 times
24 times
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Quality of Hire Balanced Scorecard – Pivotal Roles
Average Time to Hire Reduction
0%
1%
2%
3%
4%
5%
6%
7%
march april may june july
Average Time to Productivity
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
march april may june july
Productivity Levels
0
1
2
3
4
5
6
march april may june july
Attendance
Safety Incidents
Defect Rates
Production Rate
Turnover - First Six Months
0%
5%
10%
15%
20%
25%
march april may june
Actual
Target
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What you should and should not expect from tests
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Shine As Many Lights As You Can
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You Should Expect
• Efficiency• Consistency• Diversity and Fairness• Quality of Interviews• Time to Hire• Wasted Interview Time
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You Should Expect
• Integration with other steps• Identification of MORE HiPos• Measurement of less developables• Faster ramp up times• Higher than average performance
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You Should NOT Expect
• The perfect assessment• In depth feedback for development• Deep understanding of strengths and
weaknesses• Sudden improvements in test
performance• Test customization• Regulation of test vendors• To set it and forget it
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Summary & Next Webinar in Series
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Summary and Next
• Great competitive opportunity NOW• Tests produce real results• Tests have clear limitations
Next Webinar: Overcoming Testing Implementation challenges
Chris Boag, Team Leader Recruiting and Selection