A Framework for Aligning Talent to Strategic Outcomes Optimizing Talent A Framework for Aligning Talent to Strategic Outcomes

Keys to Success Every Business/Organization Needs Four Types of Plans that are linked and aligned: Financial Plan: outlining the details of the margins, segments, revenue projections, etc. Strategic Plan: defining go-to-market approaches, competitive environment, future market opportunities, new products/service, and a value proposition. Marketing Plan: covering market segments of customers, buying trends, future needs. Talent Plan: outlining competencies for current and future business/organization requirements, analytics for performance, and impact & return on investment (ROI) of people plans

The Talent Management System The Talent Optimization Framework™ Results The Best Talent Improved Business Outcomes Improved Diversity Of Talent Lower Costs The Talent Management System Key Enablers Leadership Culture Strategic Alignment Talent Assessment Performance Management Learning & Development Talent Data Analytics HR Capacity Copyright © 2011 by Information Age Publishing All rights of reproduction in any form reserved. Reproduced with permission from the Author, Linda Sharkey.

Vision/Mission/Values Key Enablers Key Enablers The art and science of motivating by engaging people’s hearts and minds to deliver what you know needs to be accomplished. Effective leaders want an impact that is GOAL-FOCUSED, HUMANISTIC, AND COLLBORATIVE IN NATURE. Leadership LEADERSHIP IMPACT Vision/Mission/Values Thoughts/Emotions Actions/ Behaviors BULL’S EYE EXERCISE Experiences Beliefs/Values Decisions Actions/Behaviors Leadership

Leadership Strategies Prescriptive Leadership Guide Or Direct The Activities Of Others Toward Goals, Opportunities, And Methods Provides People With: A Direction To Channel Their Efforts Models Regarding How Things Should Be Positive Reinforcement To Encourage The Repetition Of Desired Behaviors A Set Of Parameters Specifying Their Sphere Off Influence Restrictive Leadership Constrain or prohibit activities and behaviors with respect to Goals, Opportunities, And Methods Directions That Should Not Be Pursued Models Regarding Behaviors They Should Avoid Negative Feedback To Discourage The Repetition Of Undesired Behaviors A Set Of Parameters Limiting Their Sphere Of Influence Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Culture Climate Culture Does the organization have a culture that supports talent development and sharing of talent? Culture Climate Culture “The way things are around here.” Climate is perceptual: What people sense and perceive. Through perceptions we form an understanding of “how things are” (present) or “how things have been” (past) around here. Climate includes members’ perceptions of systems (e.g., reward systems), structures (e.g., distribution of influence), and technology (e.g., the design of their jobs). It also reflects outcomes of the culture such as engagement, teamwork, and perceived quality. “The way we are expected to do things around here.” Culture is cognitive: what people believe and know. It reflects shared values (what is important) and beliefs (how things work). It encompasses norms and expectations that influence the way members of the organization think and behave. However, norms and expectations (Current Culture) are not always in alignment with shared values (Ideal Culture). Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Which Should Leaders Focus On? “Both” Many leaders focus exclusively on managing or changing climate. Both climate and culture influence performance and effectiveness. Culture tends to be a more reliable predictor of behavior and performance than climate. Employees act on culture, and the culture is shaped and reinforced by the climate. Climate dimensions therefore need to be driven by values to bring cultural norms into alignment with the Ideal Culture. Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Why? Climate leads to Culture leads to Outcomes Positive Climate (e.g., use of rewards) Constructive Culture Productive Behavior High Performance Long-term Effectiveness Mixed Climate (e.g., use of rewards and punishment) Aggressive/Defensive Culture Counterproductive Behavior Mixed Performance Long-term Ineffectiveness Negative Climate (e.g., use of punishment) Passive/Defensive Poor Performance Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Three Categories of Culture Passive/Defensive Culture Aggressive/Defensive Culture Constructive Culture (High Performance) The Organizational Culture Inventory® (OCI) is a reliable, quantitative picture of the Culture. The Circumplex™ brings together 12 styles of thinking and behaving; clusters these into 3 general orientations. The 120 questions in the assessment (10 for each of the 12 styles) are rated on a 5-point scale and are all behaviorally anchored. The OCI also measures key cultural outcomes in addition to the expected behaviors: role clarity service quality commitment and satisfaction It also identifies statistical relationships between the various elements of culture and these outcomes. Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Maslow's Hierarchy Of Needs

OCI Circumplex—Dimension 1 Higher-Order Satisfaction Promote behaviors directed toward the fulfillment of higher-order satisfaction needs Lower-Order Security Promote behaviors directed toward the fulfillment of lower-order security needs Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

OCI Circumplex —Dimension 2 Concern for Task Reflect expectations for behaviors that are task-oriented Concern for People Reflect expectations for behaviors that are people-oriented Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Constructive (Blue) Style Constructive styles reflect a healthy balance of people and task-related concerns and promote the fulfillment of higher order needs. Styles associated with this orientation are directed toward the attainment of organizational goals through the development of people. Constructive styles account for synergy and explain why certain individuals, groups and organizations are particularly effective in terms of performance, growth and work quality. Sample behavioral questions in the survey include: I include others in decisions affecting them I give positive rewards to others I emphasize quality over quantity I pursue a standard of excellence I explore alternatives before acting Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Passive/Defensive (Green) Style Passive / Defensive styles represent an unduly strong orientation toward people as opposed to tasks, fuelled by and reinforcing individual insecurity. These styles characterize people who subordinate themselves to the organization but, in the process, end up creating stress for themselves and allowing the organization to stagnate. Passive/Defensive styles can produce a predictable and secure situation, but at the cost of learning, adaptability and ultimately survival. Sample behavioral questions in the survey include: I don’t ‘rock the boat’ I treat rules as more important than ideas I push decisions upward I switch priorities to please others I cast aside solutions that seem different or risky Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Aggressive/Defensive (Red) Style Aggressive / Defensive styles emphasize tasks over people and are driven by underlying insecurities. In the extreme, these styles lead people to focus on their own needs at the expense of those of the group. Though sometimes temporarily effective, the presence of Aggressive/Defensive styles may lead to stress, decisions based on status rather than expertise and conflict rather than collaboration. Sample behavioral questions in the survey include: I refuse to accept criticism I question decisions made by others I stay on the offensive I persist and endure I compete rather than cooperate Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

How Culture Is Supposed to Work “The way we are expected to do things around here” “How we’re doing here” “What should be expected here” Assumptions Espoused Values Philosophy Mission Individual Level Group Level Organizational Level Goals Strategy Focus Ideal Culture Current Culture Outcomes OCI-Ideal OCI OEI Values and Beliefs Norms and Expectations Effectiveness Instrument Measuring Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

Norms and Expectations How Culture Works Model Structures Assumptions Espoused Values Individual Level Philosophy Mission Systems Group Level Goals Strategy Technology Organizational Level Skills/Qualities Focus Ideal Culture Causal Factors Current Culture Outcomes OCI-Ideal OEI OCI Values and Beliefs Levers for Change Norms and Expectations Effectiveness Instrument Measuring Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

How Culture Works: Outcomes Philosophy Mission Structures ▼Total influence ▼Distribution of influence ▼Employee involvement Systems ▼Use of rewards ▼Use of punishment ▼Participative Technology ▼Autonomy ▼Variety ▼Significance ▼Feedback ▼Interdependence Skills/Qualities ▼Interaction facilitation ▼Goal emphasis ▼Consideration Goals Strategy Individual Level Positive: Role clarity Motivation Satisfaction Intention to stay Negative: Role conflict ▼Job insecurity Stress Assumptions Espoused Values Group Level Intra-unit teamwork and cooperation Inter-unit coordination ▼Department-level quality Organizational Level Organizational-level quality External adaptability Focus Ideal Culture Causal Factors Current Culture Outcomes OCI-Ideal OEI OCI Values and Beliefs Levers for Change Norms and Expectations Effectiveness Instrument Measuring Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2014 by Human Synergistics International. All Rights Reserved.

LSI Styles 12. Maintain personal integrity Emphasize quality 1. Develop others resolve conflicts constructively 11. Work toward self-set goals, take on challenging tasks 10. Set unrealistic goals , take care of every detail 2. Cooperate, be friendly 3. Set goals to please others Agree with everyone 9. Try to look good, outperform others 8. Stay on the offensive, maintain tight control 4. Resist ideas that are different Follow policies and practices 7. Look for mistakes, stay aloof and detached 5. Wait for others to act first be a good follower 6. “Lay low” when things get tough, stay away from problems Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D. Copyright © 1973-2011 by Human Synergistics International. All Rights Reserved

Strategic Alignment

CCC Leadership Framework

GE Session C Session C is an annual organizational and individual review process Objectives Establish a framework for a formal performance discussion Improve business performance –link and align individual objectives with business strategy Set clear expectations and stretch targets for performance Develop leadership and technical skills Identify strengths and development needs Highlight career/job interests Differentiate based on overall rating: top talent, highly valued and less effective employees Reward based on contributions and skills

Focuses Both On The Individual + Key Development Process…Session C Focuses Both On The Individual + The Company Individual Feedback Development Career Company Organization Leadership Initiatives Intense Performance Culture Shared Values and Growth Traits Disciplined and Rigorous Process

Key Development Process…Session C

Consistent agenda… Discussion varies by business needs Business Session C Agenda Business Leadership Direct Report organization chart Overall rating/promotability - Officers & SEBs Succession Plan for direct reports Organization restructuring plans Pipeline Overall rating/promotability - EBs VP and SEB potentials Diverse representation and trend Retention initiatives Training nominations 3. Growth & Culture Commercial Excellence Globalization “Expert Paths” in Careers Growth Leaders Consistent agenda… Discussion varies by business needs

GE Example CEO commitment: Jeff Immelt CEO-GE spends twenty full days on people and succession planning within a three-month period …every year.

What Is Your Operating System? Creating a CONSTRUTIVE CULTURE Core business processes April June August October December March May July September January November February Leadership meetings

Talent Assessment 2 Dimensions of Talent Assessment 1. THE OVERALL RATING The overall assessment of the employee’s contribution to the organization Objectively based on past performance, demonstrated values, and unique skills Guidelines available to ensure appropriate differentiation across the Organization 2. PROMOTABILITY RATING High Potential: Continually expands personal capabilities and independently takes on greater responsibility. A high probability of competing successfully for higher banded positions. Demonstrates the capability to move up at least one salary band or to a position with significantly greater breadth and impact and realize significant additional progression thereafter. Moderate Potential: Continually expands personal capabilities and demonstrates willingness to take on greater responsibility. An individual with the likelihood of competing successfully for a higher banded position or take a job at the same band with broader responsibilities. Limited-Topped Out: An individual who is performing as a professional/expert, likely to remain in position or move laterally within the same band with similar responsibilities/depth. Is positioned at the appropriate level to maximize effectiveness.

Talent Assessment OVERALL RATING – OPERATIONAL DEFINITIONS Top Talent: Represents the very best contributors within the organization. Consistently performs and demonstrates values at a level that strongly differentiates their contribution within the organization, and recognizes this additional level of capability and performance. Highly Valued: Represents the strength of the organization. Consistently performs at a level that strongly supports business performance and values. Highly capable and high-achieving performers, who are recognized for their contribution within the organization. Less Effective: Represents the least effective contributors within the organization. Not always able to contribute at a level that is desired. Recognizes a need for change, and generally associated with needed improvement in performance and/or values, with an action plan to address.

Employee Performance – Nine Block Employee Differentiation Overall Ratings Employee Performance – Nine Block

Employee Differentiation Promotability Promotabiltiy Can Be Constrained By A Recent Promotion Or Organization Structural Design An Individual’s Capacity Based On Performance, Aptitude, Demonstrated Ability And Interest To Take On Broader Responsibilities Demonstrates Attributes That Could Be Applied To Bigger Roles Demonstrates Leadership Capabilities Communication And Influence Skills PROMOTABILITY RATING DEFINITIONS: High Potential: Continually expands personal capabilities and independently takes on greater responsibility. A high probability of competing successfully for higher banded positions. Demonstrates the capability to move up at least one salary band or to a position with significantly greater breadth and impact and realize significant additional progression thereafter. Moderate Potential: Continually expands personal capabilities and demonstrates willingness to take on greater responsibility. An individual with the likelihood of competing successfully for a higher banded position or take a job at the same band with broader responsibilities. Limited-Topped Out: An individual who is performing as a professional/expert, likely to remain in position or move laterally within the same band with similar responsibilities/depth. Is positioned at the appropriate level to maximize effectiveness.

Optimizing Talent Workbook, Chapter 5 The Talent Assessment Interview The top talents are scheduled for a talent assessment interview as part of their development action plan using behavioral interview techniques like the ones described in the books THE EVALUATION INTERVIEW: HOW TO PROBE DEEPLY, GET CANDID ANSWERS, AND PREDICT THE PERFORMANCE OF JOB CANDIDATES by Richard Fear and, Robert Chiron; or TOPGRADING, 3RD EDITION: THE PROVEN HIRING AND PROMOTING METHOD THAT TURBOCHARGES COMPANY PERFORMANCE by Bradford D. Smart Ph.D. Optimizing Talent Workbook, Chapter 5

Optimizing Talent Talent Inventory WHAT SHOULD YOU BE DOING? HIPOTs Succession Candidates Create A Framework To Develop Your Talent Career Growth Candidates HIPOTs High Potential Talent Key Contributors Talent Inventory NON-HIPOTs High Potential Talent Team Players Problem Children Exit

Benefits of Optimizing Talent

Performance Management Definition: A year-long collaborative process between an employee and manager that links individual performance to the objectives of the work unit and the strategic and operational goals & processes of the organization. EMPLOYEE PERFORMANCE MANAGEMENT INCLUDES: Planning Work And Setting Expectations Continually Monitoring Performance Developing The Capacity To Perform Periodically Rating Performance In A Summary Fashion Rewarding Good Performance

GE Simple Report

GE Report Improved – Employee’s Section

GE Report Improved – Employee’s Section

GE Report Improved – Manager’s Section

GE VALUES

Always With Unyielding Integrity GE Growth Values… Headlining Phrases External Focus Clear Thinker Imagination Inclusiveness Expertise Defines success through the customer’s eyes In tune with industry dynamics…sees around corners Generates new and creative ideas…open to change Resourceful…displays courage & tenacity Teamwork…respects other’s ideas + contributions Creates excitement and drives engagement Domain depth…credibility built from experience Continuously develops self…loves learning Seeks simple solutions to complex problems…decisive Focus…communicates clear + consistent priorities Always With Unyielding Integrity

High Performance Organizations 3 Critical Components Of Your Performance Management System Job Related Goals Goals That Support The Organizations Culture/Values Behavior Strengths And Improvement Areas That Support Personal Growth And Career Aspirations Discussion More Important Than The Form Itself Keep The System Simple, Automate If Possible Be Clear About Expected Leadership Behaviors, Everyone Gets Feedback On How They Are Progressing On The Leadership Aspects Of Their Job And It Is Aligned With Their Assessment Best In Class Standards For Job Or Function Train Leaders On How To Give Effective Feedback And Coaching, Make It Part Of Their Job Requirements. Consistent Model For Coaching. Constructive! Career Pathing Model, Educate Leaders To Have Career Discussions With Their Employees, Keep It Realistic Create A Culture Where It’s Ok To Ask For Feedback Leverage Technology And Social Media To Enable Learning And Feedback Exchange Measure Effectiveness Through Employee Surveys, OCI, OEI. Be Prescriptive About Positive Management Leadership. Reinforce Through Positive Recognition Celebrate Progress Copyright © 2011 by Information Age Publishing All rights of reproduction in any form reserved. Reproduced with permission from the Author, Linda Sharkey.

Learning and Development Strategic Alignment Training and Developmental Assignments Job Enrichment Develop Leadership Coaching Skills Mentoring Top Talent – Train Leaders Professional Coaching Clearly Defined Leadership Competencies Address Development Gaps Measure Impact of Learning & Development Build a Constructive Culture Make it a part of your Session C process

Talent Development Development Is More Than Attending Training… POSSIBLE DEVELOPMENT ACTIVITIES Lead A Team On An Important Project Handle A Negotiation With A Customer Or Supplier Install A New System Or Implement A Process Manage A Product, Program, Equipment Or Systems Purchase Interview Job Candidates Work On A Cross-functional Team Manage The Visit Of A VIP Customer Lead A Cost-cutting Project Resolve Conflict Among Team Members Facilitate A Meeting Lead A Team Of Experienced People Lead A Team Of Former Peers Work On Something You Hate To Do Mentor A New Employee Organize A Team Celebration Lead A Course Or Workshop Teach Someone How To Do Something

Human Resources Capability How many of you have an Organization Development Function within you HR Department? Cultural Assessments, OCI Exit Interviews Employee Climate Surveys, OEI Customer Surveys Regarding The Culture And Values Employee Advocate Assessment Skills, Both Organizational And Individual Talent Super Coach Strategist, Analyze And Solve People Impact, (CAP), Create Workforce Plans HR Analytics Leadership Development Measuring The Impact Of HR Activities And Initiatives

Organization Development Strategy Talent Management: The process of facilitating the development and career progress of highly talented and skilled individuals for the future good of the organization. Replacement Planning: Planning their potential replacement of current leadership positions. Succession Planning: The process of looking at the leadership competencies and structures that will be needed for the future and ensuring the development of successors to meet future needs Coaching: “Shape the understanding, development, and learning, of team members so they can deliver results both independently and in concert with the strategic goals and objectives of the whole organization”.

Talent Data Analytics Using The TOF to Ensure Sustainability & Growth By: Gathering, Interpreting, and Leveraging the Right Talent Data Link to Take Survey – www.optimizingtalent.com/survey Critical To Success Leadership Assessment Data – Assess Leaders against a set of criteria/ competencies Cultural Assessment Data Employee Engagement and Satisfaction Customer Satisfaction Data – External and Internal Retention Data R&R Data Talent Pipeline Data Hiring the Best Talent Data Market Performance Data