Measuring the Value of Integrated Talent Management by umsymums35

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									     Measuring the
 Value of Integrated
                       Kevin Oakes, CEO, i4cp
                       Tamar Elkeles, CLO, Qualcomm

Talent Management
                         •3M                         •Lockheed-Martin
                         •A.T. Kearney               •McDonald’s Corp


 Who is i4cp?
                         •Allstate                   •MGM Mirage
                         •American Management        •The MITRE Corp.
                         Association                 •Navistar International
                         •Arkema                     •Northrop Grumman
                         •AT&T                       •OppenheimerFunds
                         •Attrition and Retention    •Pelco
                                                     •Pfizer
i4cp is the world’s
                         Consortium
                         •Becton, Dickinson & Co.    •Pitney Bowes
                         •Chevron                    •PNC Financial Services
                         •Chrysler LLC               •Pratt & Whitney
largest vendor-free      •Cliffs Natural Resources
                         •ConnectiCare
                                                     •Prudential Financial
                                                     •Qualcomm
                         •Darden Restaurants         •Raytheon
network of               •Deloitte & Touche
                         •Depository Trust and
                                                     •Rio Tinto Alcan
                                                     •SaskTel

corporations focused     Clearing Corporation
                         •drugstore.com
                         •Duke Energy
                                                     •Seagate
                                                     •Shell Oil
                                                     •Sun Microsystems

on improving             •Eli Lilly & Co.
                         •ExxonMobil
                                                     •Tampa Electric
                                                     Company
                         •The Federal Reserve        •Target
workforce productivity   System
                         •FedEx Express
                                                     •The Independent Order
                                                     of Foresters
                         •Ford Motor Company         •USF Health Leadership
                         •Highmark Inc.              Institute
                         •ING Americas               •US Office of Personnel
                         •Ingram Micro               Management
                         •Intel                      •USA Today
                         •Johnson & Johnson          •Wachovia
                         •Key Bank                   •WellPoint
                         •King Pharmaceuticals       •Weyerhaeuser
                         •Lee Hecht Harrison         •Xerox
                                                     •YMCA                                (partial list)




                                                                   PROPRIETARY & CONFIDENTIAL | Page 2
Institute for Corporate Productivity
 Started at the University of Michigan over
    40 years ago as the Human Resource
    Institute (HRI)
   Corporate membership, available to all
    employees, to access actionable
    research and community of experts
   Majority of members are Fortune 500
   One of the largest research staffs in
    human capital; 10,000 pages produced
    annually
   Reports on what is happening today and
    trend analysis and predictions for the
    future to facilitate innovation


                                               PROPRIETARY & CONFIDENTIAL | Page 3
 Global leader in developing and delivering innovative digital wireless
   communications solutions based on CDMA and other advanced
   technologies.
 Partners with wireless operators, device manufacturers, software
   vendors and distribution suppliers to drive adoption of mobility
   solutions.
  INNOVATION – EXECUTION – PARTNERSHIP

                               • Founded in 1985
                               • FORTUNE 500 Company
                               • NASDAQ Symbol: QCOM
                               • ~5,700 U.S. patents and patent applications of CDMA and
                                 related technologies including WCDMA
                               • Member of the S&P 500 Index
                               • Top 125 Training Organizations , Training Magazine
                               • ―100 Best Managed Companies‖, Industry Week
                               • ―100 Best Companies to Work for in America‖, Fortune
Our Business
Enabling the next evolution of wireless through….

 Technology Licensing
 Chipsets and System Software
 Mobile Content Delivery
 Wireless Multimedia
 Mobile Display Technology
 Qualcomm Employee Landscape
 Over 15,000 employees
    ~65% are engineers
 70 worldwide locations
    Headquartered in San Diego, CA
    15% of employees located
      internationally
 Employee Growth:
    Total employee base grew 17% in
     past 12 months
    International employee base grew
     18% in past 12 months
Mission Critical In This Environment:
Improving Productivity
 With reductions-in-force, forced retirements & early exit
  packages, companies are forced to do more with less
 Improving the productivity of the workforce will be critical
 Today there is a strong emphasis on taking a more
  holistic, integrated view of the individual (i.e. integrated
  talent management)
 Technology is fueling much of this
 Measurement of organizational and employee
  performance is critical…
 …but measuring it the way the business measures itself
  and tying it to business results is a necessity

                                               PROPRIETARY & CONFIDENTIAL | Page 7
What Top Management Measures
  •   Shareholder value
  •   Revenue
  •   Profitability
  •   Top-line growth
  •   Quality
  •   Customer satisfaction
  •   Return on investment
  •   Return on assets
  •   Cycle time
                               PROPRIETARY & CONFIDENTIAL | Page 8
       What Trainers Measure
  100%                94%
   90%
   80%
   70%
   60%
   50%
   40%                                      34%
   30%
   20%                                                          13%
   10%                                                                                    3%
     0%
               Reaction (Level 1)   Learning (Level 2)   Behavior (Level 3)   Results (Level 4)
Source: ASTD


                                                                              PROPRIETARY & CONFIDENTIAL | Page 9
     Talent   Winner of ―The
              Most Overused
Management    Term‖ 2008
How Important Is the Following Issue for the
   Management of People in Your Firm?
                Talent Management




                                               Source: i4cp, 2008

                                    PROPRIETARY & CONFIDENTIAL | Page 11
           Definition
           Does your organization have an agreed-on definition of
           talent management?
                    80%

                    70%

                    60%

                    50%

                    40%

                    30%

                    20%

                    10%

                      0%
                                               No   Yes
Source: Institute for Corporate Productivity

                                                          PROPRIETARY & CONFIDENTIAL | Page 12
The Talent Continuum



             Learning             Compensation                 Retention

                        Performance          Succession
Recruiting              Management            Planning




                                                 PROPRIETARY & CONFIDENTIAL | Page 13
The Talent Continuum

                      Learning

                                  Performance
        Recruiting                Management




         Retention               Compensation

                     Succession
                      Planning



                                                PROPRIETARY & CONFIDENTIAL | Page 14
The Talent Continuum

                      Learning

                                  Performance
        Recruiting                Management

               Talent
             Management
         Retention               Compensation

                     Succession
                      Planning



                                                PROPRIETARY & CONFIDENTIAL | Page 15
 Predictions
“There is no bigger problem in the global
marketplace today than how to obtain, train and
retain knowledge workers.”
                 - Michael Moe, Chairman & CEO
                        ThinkEquity Partners LLC


“The killer app for the next decade is talent
acquisition and retention.”
                              - John Doerr, Partner
                 Kleiner, Perkins, Caufield & Byers
                                       PROPRIETARY & CONFIDENTIAL | Page 16
         An Investment Banker’s Graph




Source: CIBC Employee Relationship Management Report, February, 2001


                                                                       PROPRIETARY & CONFIDENTIAL | Page 17
                                                                                                                                   continue
                                                   HR Continues to Evolve                                                          to grow
                                      Add Value
                                         &
                                      Maximize                                                        Strategic                       Talent
                                       Upside                                                        HR Planning                    Management
Impact/Contribution to the Business




                                                                                                                    Culture
                                                                                             Organizational         & Image
                                                                                                Design
                                                                                                                     HR as
                                                                                  Survey Action
                                                                                                                    Business
                                                                                    Planning
                                                                                                                     Partner
                                                                                                       EEO/AA
                                                                                       Staffing


                                                                    Employee       Training &
                                                                    Relations     Development          Performance
                                                   Labor/Union                                         Management
                                                    Relations
                                                                                  Compensation                HR Information
                                                                   Benefits
                                                                                                              Systems (HRIS)

                                        Limit        Safety &            Compliance
                                       Liability     Workers’
                                          &        Compensation
                                       Protect
                                      Downside
                                                    Labor         Employee      Personnel         Human               Organizational
                                                    Relations     Relations                       Resources           Effectiveness

                                                                  Almost a Century of Evolution in the Function
                                                                                                                   PROPRIETARY & CONFIDENTIAL | Page 18
Joint Research Study




                       PROPRIETARY & CONFIDENTIAL | Page 19
Profile of Respondents




                         PROPRIETARY & CONFIDENTIAL | Page 20
     To what extent do you agree with this
     definition of talent management?
 Talent management is a holistic approach to optimizing human capital, which
enables an organization to drive short- and long-term results by building culture,
   engagement, capability and capacity through integrated talent acquisition,
  development, and deployment processes that are aligned to business goals.




                                                                      Source: i4cp, ASTD 2008


                                                             PROPRIETARY & CONFIDENTIAL | Page 21
How long has your organization had an integrated
talent management approach in place?




                                                Source: i4cp, ASTD 2008


                                       PROPRIETARY & CONFIDENTIAL | Page 22
How will emphasis on talent management change at
your organization change over the next three years?




                                                 Source: i4cp, ASTD 2008


                       **p<.01          PROPRIETARY & CONFIDENTIAL | Page 23
To what extent are each of the following
components integrated into your organization’s
talent management program?
                              Percent choosing high    Correlation with talent
         Responses
                               or very high extent    management effectiveness

  Performance management                                       .47**
      Learning/training                                        .43**
   Leadership development                                      .52**
   High-potential employee
                                                               .53**
         development
    Individual professional
                                                               .52**
         development
        Recruitment                                            .40**
        Engagement                                             .56**
  Compensation and rewards                                     .40**
    Succession planning                                        .47**
          Retention                                            .55**
                                                                       Source: i4cp, ASTD 2008

                                     **p<.01                  PROPRIETARY & CONFIDENTIAL | Page 24
To what extent are each of the following responsible
for talent management in your organization?
                                                                 Correlation with talent
                                         Percent choosing high
             Responses                                               management
                                          or very high extent
                                                                     effectiveness

              HR leader                                                    .50**

        Entire executive team                                              .47**

                CEO                                                        .47**

       Training/learning leader                                            .46**
Designated T.M. leader at the director
                                                                           .49**
                 level
 Designated T.M. leader at the officer
                                                                           .46**
                 level
Designated T.M. leader at the manager
                                                                           .47**
                 level
  Anyone in a supervisory capacity                                         .50**

            All employees                                                  .40**

                                                                             Source: i4cp, ASTD 2008


                                         **p<.01                    PROPRIETARY & CONFIDENTIAL | Page 25
To what extent are the following statements true in
your organization concerning programs & processes?
                                                              Correlation with talent
                                      Percent choosing high
           Responses                                              management
                                       or very high extent
                                                                  effectiveness
 We can retain the talent needed to
                                                                       .59**
       achieve business goals
   Our organization attracts talent
                                                                       .55**
              effectively
 Our organization has processes in
place to align talent management to                                    .69**
           business goals
 Our organization has a succession
                                                                       .50**
             plan in place
  Our organizational processes &
                                                                       .68**
policies support talent management.
 Our workplace layout and physical
    plant supports effective talent                                    .49**
            management
 We have a large enough budget to
                                                                       .49**
     support talent management
 We have technological capabilities
      needed to facilitate talent                                      .51**
            management                                                         Source: i4cp, ASTD 2008


                                        **p<.01                       PROPRIETARY & CONFIDENTIAL | Page 26
To what extent does your organization focus talent
management on the following employee groups?
                                                          Correlation with talent
                                  Percent choosing high
          Responses                                           management
                                   or very high extent
                                                              effectiveness
       Senior executives                                            .49**

      High-potential talent                                         .52**

   Employees in ―pivotal‖ roles                                     .50**

          Professionals                                             .50**

          All managers                                              .45**

       Skilled employees                                            .51**

         All employees                                              .45**


                                                                        Source: i4cp, ASTD 2008


                                  **p<.01                      PROPRIETARY & CONFIDENTIAL | Page 27
To what extent do the following factors drive the
need to manage talent in your organization?
                                  Percent choosing high    Correlation with talent
          Responses
                                   or very high extent    management effectiveness

   The need to execute our
                                                                   .38**
         strategies
  The need to compete in the
                                                                   .35**
        marketplace
  The need to retain our talent                                    .36**
 The need to provide customer
                                                                   .30**
            service
    Organizational changes                                         .21**
     The need to innovate                                          .38**
       Talent shortages                                            .23**
       New technologies                                            .25**
         Globalization                                             .32**
 Compliance/regulation issues                                       .09
                                                                             Source: i4cp, ASTD 2008


                                       **p<.01                      PROPRIETARY & CONFIDENTIAL | Page 28
To what extent are the following statements true
concerning your organization’s leadership?
                                                               Correlation with talent
                                       Percent choosing high
            Responses                                              management
                                        or very high extent
                                                                   effectiveness
 Our leaders see talent management
                                                                        .63**
  as vital to organizational success
 Our organization’s values reference
                                                                        .52**
        talent management
 Our organization’s culture supports
                                                                        .66**
        talent management
 We agree on a definition of talent
                                                                        .54**
            management
       Our leaders frequently
  communicate the importance of                                         .59**
        talent management
 Our leaders use the phrase ―talent
                                                                        .47**
 management‖ in our organization


                                                                                Source: i4cp, ASTD 2008


                                        **p<.01                        PROPRIETARY & CONFIDENTIAL | Page 29
Case Study

TALENT MANAGEMENT AT
QUALCOMM
                       PROPRIETARY & CONFIDENTIAL | Page 30
                     Efficiency
Integrated Metrics   Effectiveness
                     Impact
Overall, to what extent is your organization using
talent effectively?




                                                   Source: i4cp, ASTD 2008


                                          PROPRIETARY & CONFIDENTIAL | Page 32
To what extent does your organization use the
following methods of measuring the effectiveness
of talent management?




                                                Source: i4cp, ASTD 2008


                                       PROPRIETARY & CONFIDENTIAL | Page 33
                                                  Efficiency
        Three Levels of Metrics              • What range of
                                               resources (financial
                                 Impact        and non-financial)
                                               should be
                                               considered?
                           Effectiveness     • What is the
                                               appropriate level of
                                               investments?
                                Efficiency   • How should
                                               investable resources
                                               be allocated to
                                               maximize results?
Source: Boudreau and Ramstead

                                                     PROPRIETARY & CONFIDENTIAL | Page 34
                                                Effectiveness
        Three Levels of Metrics              • What unique
                                               combination of
                                 Impact        policies and practices
                                               would best build the
                                               necessary human
                                               capital?
                           Effectiveness     • What factors link
                                               policies and practices
                                               to human capital
                                               enhancement?
                                Efficiency
                                             • What attributes
                                               distinguish effective
                                               from ineffective
                                               policies and practices?
Source: Boudreau and Ramstead

                                                      PROPRIETARY & CONFIDENTIAL | Page 35
                                                    Impact
        Three Levels of Metrics              • What is the link
                                               between sustainable
                                 Impact        strategic success
                                               and human resource
                                               management?
                           Effectiveness     • Which talent pools
                                               are most critical for
                                               competitive
                                Efficiency     advantage?
                                             • How could improving
                                               human capital
                                               increase value?
Source: Boudreau and Ramstead

                                                      PROPRIETARY & CONFIDENTIAL | Page 36
Case Study

TALENT MANAGEMENT METRICS AT
QUALCOMM
                      PROPRIETARY & CONFIDENTIAL | Page 37
                  What’s Truly Important
The Bottom Line   About Talent
                  Management
What’s the Bottom Line?
Clarifying what TM means can pay dividends.
 Organizations that report being the best market performers and
  talent-management performers are more likely than average to
  say they have an agreed-on definition of talent management.
Managing talent is linked with better market
performance.
 Those who reported success in the areas of revenue growth,
  market share, profitability and customer satisfaction, tended to
  say they are better at talent management.
 Only about a third of all respondents gave their companies high
  grades for managing talent, nearly half (48%) of the best market
  performers rated their ability to manage talent as good or
  excellent.
                                                   PROPRIETARY & CONFIDENTIAL | Page 39
     Effect on the bottom-line




   Talent management defined as four process groups— strategic workforce planning, staffing services, workforce
    development, and organizational effectiveness
   Peers are a base of S&P companies reviewed on a three-year average performance basis for four financial benchmarks:
    EBITDA, net profit margins, return on assets (ROA), and return on equity. To eliminate industry bias, top performers were
    compared with their peers in the same industry. A final comparison of those companies was made against Fortune 500
    businesses.


                                                                                              PROPRIETARY & CONFIDENTIAL | Page 40
Summary
 Attention to human capital will continue to increase
     Proliferation of human capital technology is adding to it
 Professionals and organizations that pay attention to measuring
  human capital the way the business measures itself will be
  leaders
 Professionals and organizations that take an integrated, holistic
  view of ―talent‖ will have a much easier time managing through
  the war-for-talent time period
     Trainers who embrace TM will be in a better position long term
 There are no systems today that are fully integrated, holistic (but
   many claims, and a few that are getting there)
     Mergers and acquisitions will be focused on the integrated suite
 Talent Management will maintain it’s hold on the ―most overused
   term‖ award for the foreseeable future

                                                                  PROPRIETARY & CONFIDENTIAL | Page 41
            Kevin Oakes, CEO, i4cp

Questions   kevin.oakes@i4cp.com

            Tamar Elkeles, CLO, Qualcomm

								
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