Five tools for managing leadership talent: 1. Measure 2. Find 3. Engage 4. Develop and 5. Move. Practical tips from talent management at blue chip companies

1. Managing Leadership Talent Tim Coburn Flourish Ltd Visiting Fellow at Nottingham Business School International Centre for Talent Management and Development February 2009

3. STRATEGIC DECISIONS FIND CUSTOMER REQUIREMENTS PERFORMANCE MANAGEMENT PLUS ENGAGE DEVELOP MOVE MEASURE Talent Management

6. Measure

7. Measure Your Talent Gap: Tool 1 * Data are illustrative only and do not represent any organisation. ROLES MD Ops D Sales D Dist D FD HRD POSITIONS 4 12 6 6 3 17 READY NOW 1 7 10 8 1 24 RATIO 1:1 1:1 1:1 1:1 1:1 1:1 TARGET 4 12 6 6 3 17 NET SUPPLY (3) (5) 4 2 (2) 7 TOTAL 48 51 1:1 48 3 GAP + 3

10. Measure Your Talent Gap - Tool 2 * Data are illustrative only and do not represent any organisation. ROLES MD Ops D Sales D Dist D FD HRD POSITIONS 4 12 6 6 3 17 READY IN 3 YRS 0 7 2 12 8 3 RATIO 2:1 2:1 2:1 2:1 2:1 2:1 TARGET 8 24 12 12 6 34 NET SUPPLY (8) (17) (10) 0 2 (31) TOTAL 48 32 2:1 96 (64) GAP - 64 Long Term Planning

13. Measure Your Talent Gap - Tool 3 * Data are illustrative only and do not represent any organisation. Will all transfer? Probably not Currently Open Estimate 2% (12) Expected Retirements Age 58+ 3% per yr (54) Expected Deleted Positions 10% This Yr 60 Expected New Positions 2% pa (36) 2008-11 ‘ Talent’ Positions to Fill (192) Expected Normal Turnover 5% per yr (90) No. of ‘ Talent’ Positions 2008 600

16. Find

25. Engage

26. The Case for Engagement is High Companies with Achieve more than And more than High Employee Engagement 5% greater Operating Margin 3% greater Net Profit Margin Source: ‘Closing the Engagement Gap’, Towers Perrin, 2008

27. But, so is Engagement is improved by many things pay vision and values brand boss culture purpose job itself security work-life balance Performance And we use Performance Management to deal with that

28. So, why not add And call it Engagement Performance Management Performance Management Plus to + =

29. Performance Management Plus Perform Develop Perform Develop Engage From this To this Performance Management Performance Management Plus Like Performance and Development, Engagement is a management responsibility. It’s part of the same Conversation

30. Efficient integration Perform Develop Engage explain the corporate landscape understand what personally motivates make the vital connection and listen, align and adapt set performance objectives review progress give performance feedback and reward identify capability gaps build development plans give development feedback and coach

31. Engagement Tool for Line Managers What the future here looks like Where I believe we need to be Why it’s important we get there Why it matters to me How we want to engage you 1. Leader describes a realistic corporate landscape What my future looks like Where I believe I want to be Why it’s important I get there Why it matters to me How I need to be more engaged 2. Employee explains what motivates and engages them What our customers need from us both How the work we need to do can engage me How the organisation can help me do my best What more we need from each other How we can fill any gaps in engagement 3. Leader and employee make the vital connection Listen, align and adapt It starts here 4. They both work at improving engagement

33. Develop

35. Source: ‘How Executives Grow’ McKinsey Quarterly, 2000 Importance to Personal Development: Rated ‘Absolutely Essential’ or ‘Very Important’ Effectiveness of Company: Rated ‘Excellent’ or ‘Very Good’ 0 10 20 30 40 50 60 70 80 90 0 10 20 30 40 50 60 70 80 Way Jobs are Structured Special Projects Speed of Job Moves Role Models Told Strengths & Weaknesses Informal Coaching and Feedback 360 Feedback Mentoring Traditional External Training Traditional Internal Training Non traditional Learning Individual Learning Formal Performance Evaluation Job Rotation Development Plans Outside Testing THE JOB ITSELF FEEDBACK & COACHING FORMAL TRAINING KEY

40. Initial Assessment 1 st Review 2 nd Review Leadership Development Progress Review with Colleagues Behaviour to Develop Medium High Low Very Low Very High 0 1 2 3 4 0 1 2 3 4 0 1 2 3 4

41. Initial Assessment 1 st Review 2 nd Review Leadership Development Progress Review with Colleagues Behaviour to Develop Medium High Low Very Low Very High 0 1 2 3 4 0 1 2 3 4 0 1 2 3 4

45. Move

46. What’s the goal? KEY ROLE KEY TRANSITION MANAGE SELF MANAGE OTHERS MANAGE MANAGERS MANAGE A FUNCTION MANAGE A BUSINESS GROUP EXECUTIVE MANAGE THE ENTERPRISE LEADERSHIP TRANSITIONS Source: ‘The Leadership Pipeline’, 2001 by R Charan, S Drotter, J Noel

51. STRATEGIC DECISIONS FIND CUSTOMER REQUIREMENTS PERFORMANCE MANAGEMENT PLUS ENGAGE DEVELOP MOVE MEASURE Talent Management

52. How are you doing?

53. Quick Assessment Tool Use the following Questions to check your approach to Talent Management If you can’t say Yes to the whole question, the best answer is No Guide

54. How are you doing? 1. Do you have an agreed business case to support the organisation’s targeted investment in talent management? 2. Is your leadership team engaged and are they actively championing talent management activity? 3. Do you know the job roles or employee groups for which you need a strong supply of talented people? 4. Do you have a measurement tool for identifying talent gaps and requirements in our organisation? YES NO

55. How are you doing? 5. Do you have a data-based measurement of the talent requirements of our organisation? 6. Do you have standard tools , processes and talent management practices to ensure a consistent approach? 7. Do you know the behaviours that differentiate the talent you need and are they used well in selection, development and performance management? 8. Do leadership teams manage job moves to match the right people to the right roles? YES NO

56. How are you doing? 9. Do your talented people have development plans that maximise potential through learning and job experience? 10. Are your managers equipped to engage the talented people they lead as part of their management role? 11. Are managers measured, recognised and rewarded for their achievements in managing and developing talent? 12. Do your employees know the talent you want and do they have the opportunity to show and develop it? YES NO