Linking Talent Management to The Strategy Herbert L. Drayton III President and CEO Vertical Holdings

Agenda Defining talent management and the employee lifecycle A note about millennials Cascading organizational strategy and goals

Who Owns Talent Management?

Human Resources The Economist magazine recently said that CEO’s across the world rated HR as their worst performing business function. Business acumen is the single biggest factor that HR professionals lack today. – Fast Company HR is often the scapegoat when companies aren’t getting the results they want. – Business Week HR is the area that is seen to only cost the company money. – Personneltoday.com The biggest gaps (in HR effectiveness) came in the most important, strategic aspects. – Cornell University Study

How to Overcome These Challenges Link talent management to specific business outcomes Partner with leaders from all business units Know your business: structure, how it makes money, politics, culture, strategy

What is Talent Management Talent Management is a holistic and strategic approach to the employment lifecycle. This includes previously separate functions such as employee engagement, training & development, and organizational development

The Lifecycle of an Employee Starts before someone joins the organization Progresses through their employment history Does NOT have to conclude with separation

Typical Practices in Talent Management Recruiting and Selection Onboarding Goal Setting Job Profiles Competency Models and Processes Performance Management Succession Planning Career Progression Maps Workforce Analysis Reports and/or Needs Assessments Development Planning Compensation Planning and Administration

Three Ways Millennials Impact Talent Management

Transparency Millennials are keen on organizations that understand who they are and what they want. (Perhaps we all are, but Millennials won’t settle for anything less!)

Personal Development Millennials ally themselves to institutions far less than their older peers – and that includes their employer. When they move, they’re looking for positions providing personal development and the chance of career exploration.

Social Being connected is part of life now, and especially so for a generation that has grown up knowing nothing else. Again, organizations are bending to this, ensuring internal systems are not just mobile-compatible, but are designed from the start with mobile in mind.

Talent Management is Hard Stuff

Talent Management Effectiveness What is the baseline for each role and its value to the organization Where are you now (gap analysis) Work with the leaders of the organization to determine the talent management vision Create a sustainable roadmap to get there

Linking Strategy to Talent Management Business Strategy Financial Patient (Customer) Internal Knowledge Targets Initiatives Subcategory of initiatives supported by Human Resource Support for improving financial management Financial contribution of HR (ROI) Support for improving employee-customer interactions Support for improving internal management Developing core skills and competencies Targeted development of skills Talent Management Strategy

Linking People to Strategy If talent management is about the people processes in an organization; and… People drive the execution of strategy; then… Talent management drives and enables people to execute strategy