Talent Management Report By: Dan Scoggins, Bob Berg, Brian Hickok, Glenice Booker-Butler, and Andy Meier.

Talent Management Report

By: Dan Scoggins, Bob Berg, Brian Hickok, Glenice Booker-Butler, and Andy Meier

Question #1What is the definition of Talent Management @ GE as

we have discussed it?

Generic

“Talent management is the integrated process of ensuring that an organization has a continuous supply of highly

productive individuals in the right job, at the right time”GE

Putting the best talent in all jobs & developing new and existing skills at every level. While identifying and

aggressively developing high potentials for the companies proactive succession management process.

• GE Mission & Vision• Power of Leadership

• Strategic Workforce Planning

Question #2What are the Objectives of the TM Program?

• Get the Right People in the Right places to Accomplish the Business Goals

• Align recruiting efforts with business core strategy.

• Employee development is essential to improving their workforce and overall health of GE.

Question #3 What was the genesis of it? Why

was it born?

Jack Welch – CEO from 1981 to 2001, formed much of GE’s current talent management practices.

Jack Welch’s value of differentiation. – Business – GE identified and only kept

business that were 1-2 in their markets and profitable. GE sold everything else.

– People - Forced ranking system for employees.

20% Stars, 70% average, 10% need to go

Welch placed a high value on trainingIn 1985 Welch invested $45 million in updating Crotonville, GE in-house training facility. (Tichy & Sherman, 1993, p. 130).

Crotonville – training facility• Welch’s team viewed Crotonville as a

laboratory to create a new type of management (Slater, 1999, p. 262).

• Welch expected candor from the managers, eliminating any of the constraints of rank and hierarchy while in training.

• The Pit - Crotonville included a training room, called the “pit” where 100 high performing leaders, could ask the CEO questions and he would be expected to answer with his trademark candor (Tichy & Sherman, 1993, p. 140).

Crontonville is still where GE Leaders are trained in the GE way.

Crotonville was the place GE’s highest performing Leaders, would be indoctrinated in GE’s new values so they could bring these values back to the company. (Tichy & Sherman, 1993, p. 131).

Work-out – bring GE values to all employees• Town hall meetings with 30-100

people were held, trying to recreate the candor of Crotonville, with the lower level employees.

• Employees developed their recommendations to improve processes and solve problems in their organizations.

• Managers were expected to answer 75% of the employee’s questions on the spot and the rest in 25 days or less (Welch & Welch, 2005, p.56). This showed which managers would “walk the walk” of GE’s values.

The “Work-outs” involved 200,000 GE employees by 1993.

Employees of GE’s Aerospace business

Question #4Explore each of the following:

• Succession Planning- Purpose is to fill critical future organizational positions

• Training & Development- For Who?

- Open to all employees of GE

- For What?- For Technical Training & Leadership Development

- Why?- GE realizes improving job competency will only benefit GE

• The GE selection process for hiring the right talent- GE internal recruiters used only, with a very rigorous interview process

• Technology used to facilitate the Talent Management Program- Employee Management Software (EMS)- Digital Technology Recruitment (DTR)

Question #5 To what extent does their process involve their

international employees?“GE a driving force in global leadership development”

Raghu Krishnamoorthy, Vice President, Executive Development and Chief Learning Officer

• Value SystemAround the world, we're helping our customers to invent more, to make more, to sell more and to do it all

with greater efficiency.

• Goals and ObjectivesCommitted to supporting our employees through systems and policies that foster open communication,

maintain privacy, and assure health and safety.

• Talent AssessmentGE Capital has a culture of continuous learning, thoughtfully designed to enable employees to grow their

personal capabilities and reach their full potential.

• Cultural Difference Awareness

Diversity at GE Capital, is about the power of the mix and the strengths that results from a team with varied experiences, backgrounds and styles.

• Accountability:

GE fosters an inclusive environment where employees have the opportunity to succeed and diversity is embraced as a competitive advantage in the marketplace.

Question #6 To what extent does our 4-R model play a role in their definition of

competencies?

GE corporate values were used in Leader competencies and performance evaluations since 1986 and perhaps earlier.

GE’s corporate values changed several times from 1981, when Jack Welch became CEO and again under current CEO Jeffrey Immelt (2002 to present). Jack Welch believed corporate values, and therefore competencies should change with the company.

GE also used more than one model of competencies. All of these competencies models have connections to the 4-R model’s virtue clusters, roles or responsibilities.

CEO Jeffrey Immelt speaking with GE’s values of candor and openness to employees in training at Crotenville.

Hiring CompetenciesIn Jack Welch’s book, Winning, he describes the three

minimum competencies, or acid tests, before hiring any GE Leader. (Welch & Welch, 2005, p 83).

Here are Jack Welch’s definitions from Winning.• Integrity - taking responsibility for past actions and

mistakes.• Intelligence - intellectual curiosity, not education• Maturity – emotional maturity.

All three of these clearly align well with the 4-R DICE+1 values of Intellectual Flexibility, Characterlogical Soundness and Emotional maturity.

GE employee sign a code of conduct agreement every year. This is the corporate version, but different business units have their versions of the Spirit and Letter

Values from 1986 – as Leadership competenciesIn 1986, GE required all employees at GE to accept and sign on to the

common corporate values of openness, ability to face reality, self-confidence, fast action, candor, honest communication and integrity. These values were actual measurements in performance reviews (Tichy & Sherman, 1993, p 264).

GE’s 1986 values are character based more than industry based. These character based values, would align well with the virtue clusters around each of the DICE+1 aptitudes.

Examples of two 4-R Model, DICE+1 virtue clusters• Emotional maturity virtues - realism, recognition, resilience,

resonance and responsibility. GE’s openness, ability to face reality and honest communication.

• Characteralogical virtues - integrity, loyalty and community. GE’s constant emphasis on candor and integrity.

Another GE values model is the 4-E model. GE found that a “vitality” separated the 20% leaders from the 70% leaders. (Welch&Welch, p. 84).

E Values – in 4-R virtue clusters, roles and responsibilitiesThese “E” values were also used as competencies and training for leaders. These values appear in the virtue or character based values and other roles of the 4-R model. For example, the GE Edge value of courage is in the virtue cluster of dynamic determinism. The 4-R role of vision caster in GE’s value of energizing others.

4-E and 1 P Model: • Energy – thrive on energy, change, extroverted, optimistic. • Energize others – inspire your team, communicator, humor, • Edge – courage to make hard decisions. • Execute – the ability to get things done• Passion – excitement about work, tend to be passionate about everything.

External Focus: Is in tune with customers and environment, connects with stakeholders, and is educated on global issues

Clear Thinker: Embraces and adapts to uncertainty, connects strategy to purpose and inspires, uses knowledge and instinct decisively, and hits commitments

Imagination & Courage: Generates innovative ideas, takes risks and learns from success and failure, and challenges bureaucracy

Inclusiveness: Welcomes ideas, listens and is humble, collaborates with respect to individuals and cultures, and drives engagement Expertise: Has domain expertise, continuously develops self and others, and leverages technology. Taken from "The leading edge: How GE defines good

leadership," n.d.

GE Growth Values and the 4-R Model, roles and responsibilitiesGE’s Growth Values can again be connected with the 4-R model, particularly in the 4-R responsibilities of motivating (aligned with GE’s inclusiveness) and the 4-R roles of change agent (GE’s imagination and courage) and direction setter (GE’s external focus).

During Jeffrey Immelt’s time as CEO, the corporate values changed again to a simpler system and become GE Growth Values in 2005. This was part of a larger manual that Leaders would read and agree to.

Here is an explanation of how GE views the link between values and leader competencies.

These values and the leadership behaviors they embody are the end result of a comprehensive internal and external process that assessed what GE leaders are doing that works, what’s not working, and what capabilities we need to develop to reach our strategic goals. Under each value, we define a set of behaviors that clearly delineate how we expect GE’s leaders to act, based on their level in the organization. Those behaviors are the basis of our performance reviews. Taken from "The leading edge: How GE defines good leadership," n.d.

Question #7 What have they changed in their TM program in the

last five years and why?

• More opportunity for employee direct input on development goals

• Employees to select a self “leadership” training program of their choice

• Encourages personal and professional development

• Internal departments pay for employee trainings• GE’s TM culture influences personal/professional

growth, whether it’s sought after or not.

Question #8 Looking Forward to Next 5 Years

• More focus will be put into the recruiting process to bring in high potential employees.

• Technical skill is key early in career, while social/leadership skills will be more important later in career.

• Continue to do research on methods to properly evaluate talent and potential in their workforce.

Question #9How do they know if they are succeeding?

• Performance Appraisal Philosophy- Timing

- Yearly reviews, with 6 month progress reports

- Forced Ranking- No longer being used at GE, compensation linked to performance

- Bell Curve Application- Used extensively at GE to gain an overall perspective

• How does GE know if they are succeeding- GE understands that if the business is succeeding, the Talent

Management program is succeeding. GE understands the importance of Talent Management for the success of the company

• Measurements used to determine Success?- high participation in the TM program, low employee turnover and Business Success

Question #10 What recommendations would you make to this

organization and why?

• Set employees goals of a realistic expectations• Upon realistic goals, set a specific target for the

employees who wish to internally go places.• Set up a path or progressive tracking scale, upon

internal growth of personal/professional accomplishments.

• Allow the employee to be told if they are going to achieve their potential or not.

• Work with an employee more for them to reach their desired position, create a timeline to reach their goals

ReferencesGE 2001 Annual Report - GE Values. (2001). Retrieved from

http://www.ge.com/annual01/values/index.htmlSlater, R. (1999). Jack Welch and the GE way: Management insights and leadership

secrets of the legendary CEO. New York, NY: McGraw-Hill.The leading edge: How GE defines good leadership. (n.d.). Retrieved from

http://www.gecapital.com/en/pdf/The_leading_edge.pdfTichy, N. M., & Sherman, S. (1993). Control your destiny or someone else will: How

Jack Welch is making General Electric the world's most competitive corporation. New York, NY: Doubleday.

Welch, J., & Welch, S. (2005). Winning. New York, NY: HarperBusiness Publishers.