How to simplify and improve your talent management process - Part 2

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    w w w . e m P e r f o r m . c o . u k

    Simplifying and

    Improving Your TalentManagement Process

    Including common traps & pitfalls

    (and how to avoid them)www.emPerform.co.uk

    PART TWO

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    Introduction

    Following on in part two of the Simplifying and

    Improving Your Talent Management Process white

    paper we look further at a number ofimportant areas to

    review and the fundamental questions we need to ask

    when developing a talent management process

    including:

    The Content What should you include and howshould you evaluate your people?

    Reporting & feedback How are you going toaccumulate your results and with whom are yougoing to share them?

    The Nine Box Talent Matrix How can thismatrix work for your organisation?

    360 Degree Feedback Does this need to bepart of the process?

    We will look at each of these areas in turn.

    Please note: the following text makes the assumption

    that you are looking at automating the talent and

    performance management process or already have

    something in place.

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    5.0 Content

    Content is the biggest area of confusion and debate;

    and it is almost certainly an area that needs to be

    simplified. By content we are referring to the forms that

    are being used and the items within those forms that

    are the basis for the talent or performance evaluation.

    We find that there is usually too much focus on writing

    the perfect descriptive narrative or writing the perfect

    competency definition and far too much content, rather

    than focusing on how it actually relates to required

    behaviours.

    What is most significant is that the employees

    understand the content, they can relate to it, and

    importantly, that managers can evaluate it effectively.

    5.1 Content - Competencies

    Competencies are a set of attributes and behaviours

    required to be successful in a position. Think clearly and

    make sure that the competencies that you set make

    sense for your organisation. HR and not the external

    vendor or the consultant must develop these

    competencies.

    There is often a belief that organisations need to work

    with high-priced consultants to develop competencies or

    that the software vendor should supply the competency

    library. There is also a belief that huge long competency

    lists are required that cover every behavioural aspect of

    the role within the organisation.

    Remember:

    People should

    understand thecontent and be able

    to relate to it,

    especially managers,

    so that they can

    evaluate it

    effectively. HR needs

    to own this content,

    not the vendor or the

    consultant. It doesnt

    have to be

    complicated or

    excessive, but must

    relate to observable

    behaviour.

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    The real solution is to develop simple competencies that

    relate to business drivers. In terms of quantity, four to

    six competencies are the right amount. Any more than

    that and you are losing the focus, any less and theylose importance.

    Think in terms of what the business needs from a

    particular role e.g. Sales Rep and link behaviours to

    that position.

    The most important thing about competencies isnt the

    description, the quantity or how they are assigned, but

    the fact that they must include observable behaviour.

    They are a set of attributes and behaviours that anyone

    should be able to witness, to see or to observe. The

    best competencies are the ones that use lots of

    behavioural examples. Below is a good example:

    Example - Teamwork Competency:

    Description:

    Someone who effectively co-operates and workswith others in order to achieve specific objectives

    Behaviours:

    Shares experience and expertise with the rest ofthe team

    Is respectful of other team memberscontributions and knowledge

    Has the intent to learn from others Makes sure that all team members are part of the

    decision process

    Understands the appropriate time to communicateideas

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    If we back up each competency with observable

    behaviours and we come up with four to six

    competencies that relate to our business drivers, then

    we are creating an effective framework for internalperformance management.

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    5.2 Content - Goals and Objectives

    Goals and objectives are an important area in theappraisal process but there are a number of serious

    traps and pitfalls:

    Goals are created but with no reference tobusiness drivers - these are not proper goals

    but personal development initiatives. Goals mustbe related to business objectives and drivers

    Employees and Managers have a set them andforget them mentality. Goals are set, then onlyat the end of the appraisal year do the employeeand manager get together to review.

    Many managers rely solely on the employee towrite the goals. This is simply shifting

    responsibility. It should really be a collaborativeprocess with some tangible milestones ornumbers so there can be an effective assessment

    as to whether employees have met their goals ornot!

    What we want people to think about is linking to

    organisational objectives. Goal setting should start with

    the organisations overall objectives for the year and

    the employees goals and objectives should be aligned

    to this. By doing this we ensure the business driver

    linkage. Goals need a timeframe and they need a

    commitment to be reviewed more than once a year. We

    recommend a quarterly review.

    Goals also need a success measure. How do you know if

    the person achieved the goal? It is important to agree

    on what success means. Three to five goals per year

    are realistic. Anymore than that and it is confusing for

    the employee, any less and theres no motivation.

    Remember:

    A commitment to

    quarterly check-inswill help ensure that

    both managers and

    employees are

    staying on top of set

    goals and objectives.

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    Heres a good example:

    Example: Employee Goal

    The salesperson will conduct one newdemonstration every week and log it in CRM. Thiswill help contribute to the organisational objective

    of increasing new customers by 10% over theprior year

    Here we have:

    A time frame: weekly A success measure: one new demo/week Linkage to an organisational objective: increasing

    new customers by 10% over the prior year

    5.3 Content Rating Scales

    Ratings scales are a very confusing area for many

    organisations. This is because this is where weassociate the employee with some form of rating and as

    humans we dont like to do that all the time, so it is a

    delicate area. Some of the common traps and pitfalls in

    this area include:

    Rating scales that dont relate to content Belief that the rating scale must be the same for

    each section of content

    A predictable use of the ratings: Meets, Exceedsand Significantly Exceeds

    Cont..

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    One of the significant problems is that many managers

    dont understand the difference between Meets,

    Exceeds and Significantly Exceeds when we rate a

    competency or goal. Most organisations dont take thetime to spell out the difference between good, better

    than good and great! This is confusing for managers

    because they are all positive ratings.

    We recommend that you put rating scales in place that

    make immediate sense to the people that are using and

    reviewing them. Significantly, ratings should be

    supported by behavioural examples and should alwaysrelate to the content.

    Example 1 Goal Rating Scale

    The following rating is black and white and makes it

    simple to understand.

    Goal Achieved:o All milestones and success measures have

    been achieved Active Goal:

    o The goal is still in progress, somemilestones may have been achieved

    Goal Not Met:o Timeframe for Goal has been met; however,

    some or all milestones and successmeasures have not been met

    Goal Deferred:o For timing or business reasons, this goal

    has been deferred

    Cont.

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    Example 2 Competency Rating Scale

    Consistently Observed: This competency isobserved on a constant basis; everyone in contactwith this person would observe excellence in this

    area Observed: This competency is observed, please

    continue to focus on it so that it is observedconstantly without exception

    Observed Sometimes, DevelopmentOpportunity: The competency is observed on aninfrequent basis, there is a clear development

    opportunity here Needs Immediate Improvement: The

    competency is seldom observed

    5.4 Content Career or Personal

    Development Plans

    There a two notable traps and pitfalls:

    Not used everywhere like Goals andCompetencies

    Discussion usually happens although concreteplanning and documentation is often missed andnot recorded.

    It is important that career development is linked back

    to the competencies and behaviours that have been

    created. A process needs to be set up, just like goalsand objectives, were we set, monitor and evaluate the

    career and personal development plan.

    Cont

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    The questions that you should be asking employees

    include:

    Do you feel ready to take on more responsibility? What position in the organisation would you like

    to strive for?

    Do you see yourself as a leader within theorganisation?

    These are all important manager potential questions.

    A critical area for effective appraisals, but nearly alwaysmissed off or forgotten by organisations, involves

    asking the managers for specific employee potential

    feedback. For example, is this employee ready to take

    on more responsibility in the next 6 months, the next 3

    years, is this employee promotable, do you think this

    employee is going to leave the organisation in the next

    12 months? This information is important because it is

    used for succession planning.

    There is a simple tool that makes use of the answers to

    these questions, it is called the nine box talent matrix

    and is discussed in the following section.

    Once we have all the information in place, we want our

    automated system to provide us with a lot ofreporting

    and analytics. We see a lot of focus on compliance-

    based reporting but not a lot of focus given to analysis

    and metrics. What is the information telling you? Often

    these reports are not used. They sit in the HR

    practitioners office but are not shared with the

    executives and managers.

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    What we recommend is, before you put a Talent

    Management system in place, think about the output

    first. Before you think about the content, think about

    what you want that system to tell you. Think aboutresults such as:

    Trends, comparisons, counts & averages How many people are highly rated and in what

    competency categories?

    Where are the gaps? What skills are being used to address the gaps? How many goals have been met? How many people are working on an

    organisational goal?

    Is the achievement of organisational objectiveslopsided in the favour of one or two of the five

    goals and only a small number of people workingon the other three?

    Which employees should you cycle out of theorganisation?

    These are all answers that you want to get from your

    talent management process. You want your automated

    system to tell you something!

    The reporting tool is really important here and it is vital

    to make sure that any performance management

    system that you put into place has good reporting

    capabilities. Not just canned reports, but ad hoc reports

    with lots of visuals and most importantly, once youve

    generated these, that you share these with the

    management and executive team. This is where it all

    comes together, at the end of the process the simplest

    and most effective gauge of talent is available, but

    always under used.

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    6.0 Nine Box Talent Matrix

    What we recommend is that you introduce and use the

    Nine Box Talent Matrix. Use it as the basis of your

    succession planning and your talent reviews and you

    will be easily and quickly ready to act upon your results.

    Here is an illustrated example of a nine box talent

    matrix:

    Behind the scenes how does this work and what is

    happening here? We have used our simple content and

    ratings related to Competencies and Goals/Objectives tocalculate a performance score and put employees into

    this Nine Box grid. This performance score is correlated

    with answers to the potential questions that were

    asked in the Career Development plan.

    Cont.

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    The employees in the top right hand corner are the

    successors in the organisation. Anyone who appears in

    the bottom left hand corner should be cycled out of the

    organisation as they are not performing and potentiallyharming the business. The people in the middle need to

    be developed and worked with.

    Now we have a easy-to-understand nine-box talent

    matrix; a simple, easy to build report, which can easily

    be shared with executives, managers and potentially

    even employees. Everyone can understand this and it

    can easily be related to compensation, training anddevelopment, talent pools, leadership and succession

    plans. The nine box is critical, it is what makes the

    process come together by combining all the information

    we have collected. It creates an analytical approach to

    talent management that is simple and easy to present

    to others.

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    7.0 360 Degree Multi-Rater Reviews

    On the back of the nine box, we recommend that you

    run a 360 degree review on all employees with

    potential, in order to ensure that you are eliminating

    any managerial bias.

    Another common pitfall of talent management and

    performance appraisals is irregular or limited feedback.

    360 degree multi-rater reviews offer the easy full-circle

    solution.

    More and more organisations are choosing to

    incorporate these types of assessments into their

    overall talent management process, and if youre

    looking for a more holistic approach, then a 360 tool

    might be something to keep in mind. Not only do 360

    degree evaluations maximise results by collecting

    observations from multiple sources (including peers,

    supervisors, internal and external customers, and self-assessments), they help highlight employee strengths

    and weaknesses, making it easier to provide valuable

    feedback and modify employee behaviour when needed.

    If implemented correctly, 360 degree reviews can be

    extremely effective and executing a 360 degree review

    is simple.

    Cont

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    The 360 degree evaluation process can be summed up

    in three simple steps:

    1. Develop survey questions, create customisedforms, and select your participants

    2. Administer the assessment and review theresults.

    3. Use the feedback that youve received to follow-up with relevant training and development plans.

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    8.0 Summary

    In conclusion, there is no talent management softwareyou can simply buy off the shelf and no consulting guru

    who can jet in and solve all your talent management

    and people challenges. Furthermore, the more

    expensive and more complex the software the more

    likely it is to lead to failure. We believe that quite often,

    the simpler the solution the greater the level of success.

    Remember, everyone needs to be trained and

    understand how to use it. Dont make life too

    complicated for yourself; simplicity is key for aneffective talent management process.

    Every organisation is different and has its own approach

    to talent management, however the key to talent

    management should remain the same: establishing a

    clear vision, core values and reason for existence. Its

    about valuing your employees and their overall

    contribution to the organisation.

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    This document and all its contents are the property of

    emPerform. The content is provided for information

    purposes and represents an informative opinion only.

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    Coxmoor Road

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