In 1997, McKinsey and Company released the War for Talent and awakened a new wave of interest in organizations to attract, develop, retain, and maximize the performance of their talent. Two decades later, the war drums are still beating and the battle continues to rage. With effectiveness in HR and Talent Management mostly unchanged over the past decade, organizations are looking for ways to innovate and disrupt Talent Management practices.
During this session, Zac Upchurch will share research conducted by the Talent Strategy Group. It outlines the surprisingly long journey of Talent Management, the state of Talent Management today, and how Talent Management can innovate to add value to the organization unlike ever before.
2. OUR
DISCUSSION
2
1. Understanding of the macro
Talent Management
environment – the past, present
and future of Talent
Management
2. Provide a framework for how
organizations are winning
through Talent Management
and driving business impact
7. THE BIG FOUR
7
Performance Management: Increase/upgrade individuals’ contribution to
the business through goal setting, coaching/feedback, and reviewing1
2
Assessment/Feedback: Generate objective data about an individual that
allows the organization to better differentiate their investment
3 Succession & Talent Planning: Ensure the organization has a deep bench
of talent for their most critical roles
4
Development & Coaching: Improve/upgrade individuals’ capabilities and
behaviors that increase performance. Capture the Workforce of the
Future.
Source: The Talent Management Revolution (TSG)
The set of practices that allow organizations to attract, develop,
retain, and maximize the performance of talent
8. CATALYST: War for Talent
8
Macro conditions initiated an evolution from Era One into Era
Two of the Talent Management Revolution:
1. Organizations were achieving record levels of profitability
2. Rapid global expansion; VUCA world
3. High demand for great talent, low supply
These conditions created a War for Talent that kicked off the
second Era of the Talent Management Revolution
Source: McKinsey War for Talent.
9. ERA TWO: ADOPTION
9
Timeline: 1997 - 2017
Increasingly many practitioners with increasing resources
applying tools and process against Talent Management practices
practices
2007 – Organizations with a Talent Management function
10. ERA TWO: ADOPTION
10
To evolve to the next era of the Revolution,Talent Management
needed to:
Accumulate Resources: Accumulate resources in staff and budget
1
2 Apply Resources: Begin applying those resources towards the most
senior populations of individuals, in service of the Big Four.
3 Gain Business Support: Gain the business support necessary to
introduceTalent Management at scale
11. TALENT MANAGEMENT
TODAY
11
By the end of 2017, Talent Management met these EraTwo
objectives:
1. Reached PeakAdoption
2. Began applying resources across many areas of responsibility
3. Commanded high levels of executive support
16. TALENT MANAGEMENT
TODAY
16
Talent Management has gained significant momentum in the
decades since the War forTalent.Today,Talent Management
has:
• Reached Peak Adoption
• Applied their resources in pursuit of attracting, developing,
retaining, and maximizing the performance of talent
• Fostered business sponsorship across the executive team
19. PLUS…
19
Investment in Talent Management has stagnated
In the next year, how do you expect your Talent Management function to change?
20. THE BATTLE FOR VALUE
20
SO…
Innovative organizations are in a Battle for Value to drive more
impact in Talent Management without additional resources
21. ERA THREE: IMPACT
21
Timeline: 2018 - ???
Vast majority of organizations host a Talent Management
function with a constant stream of resources. The function
applies tools in service of driving business impact differentiated
from their peers
1. Executing the Fundamentals at scale; enabling the organization to
invest in the best, mechanize the rest
2. Following the ABCs in their Talent Management practices
3. Building Capability in the Business and HR for Talent Management
22. EXECUTE THE
FUNDAMENTALS
22
• Over 1/3 ofTalent Management functions don’t have
responsibility over the Big Four and lack integration
• The averageTalent Management function has 7+ areas of
responsibility/focus
23. EXECUTE THE
FUNDAMENTALS
23
The most innovative organizations are ruthlessly prioritizing
the execution of the fundamentals (Big Four) better than the
By doing so:
• Performance of talent is increased and maximized
• An accurate assessment of talent – high performers and high
potentials
• The organization can disproportionately invest in this critical
population of talent
• There is a credible and deep bench of talent for the organization’s
most critical roles
• Talent is developed in pursuit of increased performance and
readiness for future roles
24. THE ABCs
24
We have an Accountability Problem Our Approach is Silo’d/Disconnected from
the Business
Imbalance of Value & ComplexityWe Pursue Benchmarks Instead of the
Science and Custom Context
Lack of Success
25. INNOVATE FOR IMPACT
25
Accountability: Be bold in accountability. Develop accountability across all levels of
the organization for Talent Management practices.A
B
Business-First Focus: Clarify the Business Ecosystem and how Talent Management
will intentionally drive business impact; create integrated Talent Management
practices to achieve the Business Purpose & Strategy.
C
Customized for Context: Start with the science of humans performance – what we
know works – to guide design. Where science isn’t available, design for the
organization’s context. To be the best, you can’t copy the rest.
S Simplicity: Increase the impact of Talent Management by simplifying HR and Talent
Management practices.
Source: The Talent Management Revolution
26. ACCOUNTABILITY
26
Be bold in accountability. Develop accountability across all
levels of the organization forTalent Management practices
(Adoption and Quality/Impact)
Driver What is Being Measured Standard
Measurement
Method
Adoption
G
# and % of team with goals 100% Standard
Data Pull from
System (annually)
F
# and % of team with quarterly feedback 100% Standard
Pulse Survey
(quarterly)
C
# and % of team with career conversations 100% Standard
Pulse Survey
(quarterly)
Year 1: Year 2: Year 3:
Impact
Goals
% of goals aligned with accelerators 60% 70% 80%
HRBP Audit
(annually)
Keyword audit
% of goals aligned with the strategy 60% 70% 80%
HRBP Audit
(annually)
Keyword audit
Feedback
% of employees who have had “meaningful”
feedback conversations with their manager
60% 70% 80%
Pulse Survey
(quarterly)
Career
% of employees who have had “meaningful”
career coaching conversations with their
manager
60% 70% 80%
Pulse Survey
(quarterly)
Accountability Ladder
27. BUSINESS-FIRST FOCUS
27
Business Purpose
Business Strategy
Culture & Talent
Philosophy
Talent Strategy
Talent Management
Business Purpose
• WHY the company’s ideas, products, and employees
employees should be rewarded in the marketplace
• Translation of Values to Value Proposition
Business Strategy
• Where to play
• Where to invest
• When to invest
… in order to achieve the purpose
Culture & Talent Philosophy
What are your standards around things like:
• Performance
• Behaviors
• Accountability
• Transparency
• Differentiation
Talent Strategy
• How to invest
• Where to invest
• When to invest
… in order to attract, develop, retain and maximize the
performance of the org.’s talent
Talent Management
Big Four Practices:
• Performance Management
• Assessment & Feedback
• Succession & Talent Planning
• Development & Coaching
28. CUSTOMIZED FOR
CONTEXT
28
A note on benchmarking:
• Benchmarking is the surest path to mediocrity – you can’t be
the best if you copy the rest
• What works for Company X’s culture won’t (and shouldn’t!)
translate to your culture
To win:
• Start with the Science
• Customize for your context and business ecosystem
• Empower employees to succeed
29. SIMPLIFY
29
Simplify HR andTalent Management practices for maximum
impact
Chart your processes:
• Does each element of your process
add more value than it does
complexity?
• Do all of the elements added together
add more value than complexity?
• Is the element driving maximum
value? Are we leveraging the science
where possible to guide our decision
making?
31. INNOVATION STUDY
31
Company A
• $20B+ Annual Revenue
• 150,000+ Employees, globally
• Lack a Talent Mindset and employee ownership of process
• Disconnected processes and business ecosystem
• Processes complex (per audit and feedback from employees)
32. INNOVATION STUDY
32
InnovateTalent Management by focusing on the Big Four,
optimizing across the ABCs, and building capability for success
at scale
PHASE ONE: PHASE TWO PHASE THREE
Align Business Ecosystem:
• Talent Philosophy: Create
an organizationalTalent
Philosophy, aligned to
Business Strategy
• Talent Strategy: From this,
prioritize the gaps and how
to close them through the
Talent Strategy
Design for the ABCs:
• RedesignTalent
Management process,
consistent with theTalent
Philosophy /Talent
Strategy
• Heavy on accountability,
light on process (ABCs)
Build Capability:
• Set clear expectations for
HR and the Business
• Measure adoption and
quality ofTalent
Management practices
• Build capability in EEs
across the lifecycle of
Talent Management
