1、0,Building a Sustainable Leadership and Talent Management Strategy,Craig R. Gill, Deloitte & Touche USA LLP ISE/ CHRMS Breakfast Seminar October 20, 2006,Agenda,The Talent Challenge Ahead: Beyond DemographicsEffective Leadership and Talent Management StrategiesSustainability: Becoming Part of the Bu
2、siness CycleLively Discussion and Debate,1. The Talent Challenge Ahead: Beyond Demographics,Assertions:Demographic shifts in the workforce are real They pose both a threat and an opportunitySustainability lies in expanding and realizing potential,Demographic shifts in the workforce are real,We know
3、that The Baby Boomers are aging (some of us) There is lower population growth in most developed nations The workforce is becoming more diverse (gender, race, national origin),Source: U.S. Bureau of Labor Statistics,Demographic shifts in the workforce are real,and there is a skills gap in developed c
4、ountries,U.S. The US Department of Education estimates that 60% of all new jobs in the 21st century will require skills that only 20% of the workforce possess1 US colleges and universities will graduate only a fraction of the number of scientists and engineers that will retire through 20181,Japan an
5、d South Korea Within 10 years, 26% of the Japanese population will be over 65 years old 3By 2050, the percentage of the South Koreans over the age of 60 will jump to 41% of the population from 14% today, an increase of more than 300% 4,Western Europe By 2050, 60% of the working age population will b
6、e people over 602Germany has seen engineering graduation rates decline by a third since 19952,1 Corporate Leadership Council, Managing the Workforce Planning Process, August 20042 Deloitte Research3 Corporate Leadership Council4 Hewitt International Report, October 2003,while wage inflation and attr
7、ition in emerging markets is decreasing their attractiveness as an alternative labor market,Demographic shifts in the workforce are real,China Only 50% of Asian executives believe the supply of skilled labor is adequate Labor force will begin to decline by 20171,Eastern Europe Difficulty fielding cr
8、itical talent due to cultural assimilation into the business; limited experience working in a multi-national organization; inadequate people management and communication skills4,India Salaries for supervisory positions rose 20% in 2005 2 Indian companies are increasingly focused on developing employ
9、ees to drive retention as the war for talent grows increasingly competitive3,China Population and Development Research Center Innovation in Emerging Markets, Deloitte Research, 2006 “HR Considerations For Entering The Asian Labor Market”, CLC, June 2005 “Resourcing in Eastern Europe”, Feb 2004, CLC,
10、Demographic shifts in the workforce are real,and larger costs of social benefits compete for funding of traditional talent management programs,While U.S. wage growth remains flat relative to inflation other employee costs, such as health care benefits, continue to rise rapidly1,1 Hewitt Associates 2
11、 Society of Human Resources Management (SHRM),0%,2%,4%,6%,8%,10%,9.2%,9.9%,U.S. Health Care Costs per Employee,2005,2006 est.,Top five adjustments manufacturing organizations are likely to make over the next 12 months to cover the costs of employee healthcare coverage2:,Increase expectations of empl
12、oyee productivity Increase the costs of consumer services/products Decrease other employee benefits (e.g., retirement benefits, retiree health care coverage, pension, etc.) Decrease hiring of new staff Decrease employee salaries/raises,Demographic shifts pose a threat and an opportunity,Threats: Ski
13、lled job migrating to developing countries public policy issues Unmanaged immigration into developed countries Reduction/loss of traditional pensions and paid healthcare Pushing the same buttons and expecting different outcomesOpportunities: U.S. remains healthy, active and growing strength in our d
14、iversity Pension/healthcare portability offers a new employment deal - from “indentured” to “free agents” Impetus to innovation SUVs or hybrids?,Sustainability lies in expanding and realizing potential,We have choices:Create less, or different, work (reengineer, automate, export work)Add more skille
15、d workers (import talent)Get more out of the people weve got (increase yield),Sustainability lies in expanding and realizing potential,Challenges to increasing the yield:Rising expectations will this create dissatisfaction?Diminished ambition will this work against businesses?What do workers want?Wh
16、os going to manage this?,2. Effective Leadership and Talent Management Strategies,Assertions:Traditional talent management is not up to the challengeA new model focuses on develop, deploy and connect Role of the “people manager” is essentialGoal of leadership development is sustainability,Traditiona
17、l talent management is not up to the challenge,Deficiencies Minimal alignment with business strategy Less effective given labor market realities Does not maximize the “yield”,A new model focuses on develop, deploy, connect,Advantages Focused on productivity of critical talent Creates dividends for a
18、cquisition and retention,In an environment of skills shortages and limited resources, the focus must shift from managing “A” players to “A” positions,From “A” Players,To “A” Positions,How do we support our most critical positions?,How do we support our top performers?,A Critical Workforce Segment-Ba
19、sed Talent Strategy,A new model focuses on develop, deploy, connect,A new model focuses on develop, deploy, connect,Building a critical workforce segment strategy: example,Business Unit Strategic Plan Build new technologies Grow Asia,HR, Finance, IT, Supply Chain,Sales and Marketing,Business Develop
20、ment,Global Key Account Mgr,Sales Analyst,Strategic Support,Strategic Support,Technology Platform Mgr,Demand Planning Mgr,Critical Position,Strategic Support,HR Business Partner,AP Analyst,Critical Position,Core Support,For Core Support Positions Reduce talent investments or outsource For Strategic
21、Support Positions Maintain investments and buy talent,For Critical Positions regardless of level Increase access to investments and build talent by feeding from strategic support positions,A new model focuses on develop, deploy, connect,Workforce planning focuses HR programs levers that will most ef
22、fectively meet the business demand for critical talent,1. Talent Demand Forecast,2. Talent Supply Forecast,Driven by business plans and workforce attrition,Internal and external labor market factors,4. Talent Management Programs,3. Talent Management Objectives,Serves to define: Future business deman
23、d for critical talent Opportunities presented by the external market Potential to maximize existing talent,A new model focuses on develop, deploy, connect,Workforce Planning Example: conducting workforce planning for Product Engineers,FY06,FY07,FY08,Incremental Demand,Trans/ Promo Out,Voluntary Attr
24、ition,External Hires,Trans In,Promo In,40,20,0,60,Reduce attrition Increase transfers in,Improve productivity Increase promotions,Reduced attrition,Reduced external hires,Reduced attrition and productivity,Connect,Deploy,Develop,Capability,Commitment,Performance,Alignment,A new model focuses on deve
25、lop, deploy, connect,Formal training helpful for meeting specific requirements Learning is social in nature - people learn through their interactions with others, especially when tasked with real-life issues People are more committed to the learning that occurs when they are “tested” in ways that ma
26、tter, especially when they collaborate with or are accountable to others,Develop: Ensuring that critical workforce segments are acquiring cutting edge skills to drive innovation,A new model focuses on develop, deploy, connect,People learn the most in jobs that stretch them to grow, tap their unique
27、skills, and fuel their imaginations The best organizations avoid pigeonholing people based on the confines of their resumes They also employ formal systems to manage performance - And they offer frequent dialogue and feedback,Deploy: Strategic deployment of critical workforce segments will enable in
28、tensified growth,Capability,Commitment,Performance,Alignment,A new model focuses on develop, deploy, connect,People-to-People: Cultivate high-performance networks of high-quality relationships (i.e., CoPs, knowledge management programs) People-to-Purpose: Build and sustain a sense of personal and or
29、ganizational mission People-to-Resources: Manage knowledge, technology, tools, capital, time, and physical space to achieve professional and business goals,Connect: Connecting talent in critical workforce segments converts knowledge into productive action,Role of the people manager is essential,Why?
30、Employee engagement/ attitudes key to performance1Employee engagement drivers are clear2 Challenging and exciting work Career growth Learning and development opportunities Good boss“Best Places to Work” highly correlated to management practices,Corporate Leadership Council, 2005 Career Systems Inter
31、national; Towers Perrin,Role of the people manager is essential,Evolving role of “Management”:From jobs, to skills and outcomes rethinking the nature of workFrom managing performance, to coaching and building commitmentFrom “30 years at hard labor”, to using flexibility as a business advantage,Corpo
32、rate Leadership Council, 2005 Career Systems International; Towers Perrin,Goal of leadership development is sustainability,Best practices are clear; execution is mixed:Only 34% report being effective at identifying future leaders1 Rigor and objectivity key in identifying and developing successors2P&
33、L management or P&L-like workExecutive talent management focused on replicating high-quality leaders,Conference Board Charan, Harvard Business Review,3. Sustainability: Becoming Part of the Business Cycle,Assertions:CEOs are under fire, but “getting it”Talent management is an essential part of busin
34、ess planningHR is growing in importance, if,CEOs are under fire, but “getting it”,Average tenure now 3-4 years. Great job-all you have to do is: Make the numbers, every quarter Please the Board Please everybody else Have clean books (watch those stock options!) Outwit the competition, everywhere Fin
35、d ways to keep growing Not sleep Stay balancedHow do we get sustainable talent management on their agendas?,Talent management is an essential part of business planning,Using the language and the rhythm of business:SYSCO retention strategies = 10 cents per shareCareFirst HR in the strategy and busine
36、ss planning sessionsThomson business planning and succession cycle,HR is growing in importance, if,we envision and manage HR as a business,What Business is HR In?,HR is growing in importance, if,we lead talent management to the next level of analytical rigor and resultsThey are beginning to “get it”
37、 HR gaining access to “the table”What are we going to say once we get there: talent market segmentation at Microsoft,In Summary,Talent challenge opportunity to rethink work, value and meaning (“work” as sustainable human enterprise)Talent management: hunting/gathering farming Biggest challenge: growing better “farmers”HR has to take the lead in making the business case Growing role of HR decision science: HR as “agronomist”,Your Turn,Lively Discussion and Debate Time!,30,Thank You!,
