Thinking Talent

Architecture

The world of work has changed

The world of work has altered radically in the past decade thanks to the globalisation of business, the advance of technology and the change in attitudes of the workforce.

People who joined the workforce in the last 10 years have a widely different agenda.

66%

66% will leave by 2020

63%

63% say their leadership skills

are not being developed

54%

54% expect to have up to five employers in their lifetime

52%

52% say career progression is

top priority

DELOITTE PWC

Many businesses still need to adapt to these changes and operate talent strategies which have relevance to today’s workplace.

Talent strategy

What is it?

• Kevin has a job for life• He will work his way up

from post room to boardroom

• He puts the job first, even at weekends

• He knows what is next job is and is willing to wait

• No one at his firm is part time

• His wife does not work• He works in

manufacturing• He manages people and

budgets from an early stage

• He certainly does not type

• You don’t have to worry about Kevin

• Sam moves jobs every three years

• He is willing to change career

• He sees work life balance as a right not a luxury

• He expects to believe in the vision and direction of the business

• His girlfriend earns more than he does

• He works in data• He has specialist skills• He types• You have to worry about

Sam

SAM KEVIN

What is it?

• Deidre has a job not a career

• She does not expect to be promoted

• The job is chosen to fit around the family

• She knows what is next job is, it is the same one

• Earns less than her husband

• She works for a man in a support role

• She has support skills• You don’t have to worry

about Deidre

• Sam moves jobs every three years

• She is willing to change career

• She is ambitious for progressions

• She sees work life balance as a right not a luxury

• She expects her career to go at different speeds and to decide this herself

• She earns more than her boyfriend

• She works in data• She has specialist skills• You have to worry about

Sam

SAMANTHA DEIDRE

Sam’s progress to the top is halted because they lack the senior management and leadership skills required. Like dozens of others, they have been trained for task excellence, not for organisational leadership.

The challenge is that the organisation has developed and paid Sam as a specialist because their skills are in demand in the new workforce. Why get Sam to manage people when he’s so valuable in what he does?This becomes a problem for Sam and the organisation when it comes to filling more senior manager roles. They simply do not have the breadth and track record to get the job. It’s problem for the boss too because they need a replacement to be able to move on. The classic succession gap

What has happened?

THE BOWTIE BOMBSHELL

graduates

Middle management

Senior executives

Most companies are strangled by the bowtie model which demands, and funnels its brightest people into, specialism at the expense of future leadership skills.

You don’t fix this by creating generalists at the bottom. You fix this by working with it.

Breadth of skills

11

Execs &Top Teams

Specialists

Seni

or

spec

ialis

tEx

pert

Back office and supportStaff

Individual contributors in front line roles

Contingent labour

MiddleManagers

First linemanager

Senior CommercialRole

Execs &Top Teams

Expert

Back office and supportStaff

Individual contributors in front line roles

Contingent labour

Specialists

Senior specialist

Senior CommercialRole

MiddleManagers

First linemanager

“HSBC260,000 staff100,000 in IT80,000 in riskOnly 80,000 to do the rest”

Past Now

Where the value is generated in business has shifted dramatically, primarily driven by digital

The progression of people within businesses is different in four key archetypes

Up or out Grow everywhere Middle aged spread Start up

Value doers above all else

Fluid roles

Multi task

Organic careers

Informal processes

Dive in and take risks

Pivot business models very quickly to find new opportunities

Well defined roles

Success is clearly defined

Career paths are fairly linear

Attrition is good

Stable businesses

Growing very fast

Need people at every level

A very high number of vacancies to fill

Demand at all levels

Nearly all tech driven and American

Most areas shrinking or flat

A few growth areas

New skills required

External hiring increasing at mid to senior levels

Talent pipeline blocked

Markets are changing faster than the business

Annual promotion cycle

Rapid promotion at all levels Dead mans shoes + As needed

The old career paths to senior leadership are not working as they are too narrow

13

The old career mechanism of moving up within a function is creating, functional experts without sufficient breadthThis is true for the new specialisms and the older commercial routesFinance may be the one exception

LEADERSHIP GAPS

Changing career paths to senior leadership.

14

New senior leaders need to have a different set of experiences that match the key decisions they re being asked to make• Digital• Multi Channel• International• PartnershipsCareer path management is rising up the agenda in most organisations we talk to

NEW CAREER PATHS

This leaves us two major problems

Talented people like Sam have no where to go but to the exit door

The leadership cannot be replaced from within

12

SENIOR

MIDDLE

JUNIOR

MIDDLE

JUNIOR

SENIOR

SENIOR

Sam will not wait around in middle management for years. They will jump ship to senior management elsewhere or run their own show. They will not end up running your company, but someone else’s.

YOUR CORP THEIR CORPHIS CORPWhat happens to Sam?

CEO

MIDDLE

JUNIOR

YOUR CORP

Filled from outside with untried, more expensive external hires

What happens to Sam’s boss?

RETIREMENT

1 million senior managers will leave their jobs to become independent consultants by 2020

MBA&CO

FACT

Nearly 9 out of 10 global HR and business leaders (86 percent) cited leadership as a top issue. Yet only 6 percent of organizations believe their leadership pipeline is “very ready”—pointing to a staggering capability gap.

DELOITTE

FACT

The internal talent response to date

More activity and more talent initiatives then ever, supported by the proliferation of new tools and new solutions (most of

which are good)

The leadership cannot be replaced from within

122

But, too often not strategically driven, sustained or successful. Often a strong L&D slant and lack of bite

Not bought into by the leadership as a systematic answer to how to move forward and deliver the strategy

The result

Corporate constipationOrganisations are getting blocked up in the middle. People are not progressing and are blocking the progress for people below. It does not matter how much you add below they only rise so far then move out. At the same time the blocked middle does not have the new skills so more and more senior specialists are added. And the middle does not have what the top needs, causing external hires and further cementing the middle in place as they have no where to go

How can we help?

Structural survey of existing talent architecture, matched against business needs and external environment

Three point plan release the

pressure1

2 Creation of a systematic talent plan that aligns to a strategy

3 Help with delivery of talent plan

Let’s really understand what is going on, where the business is heading, what the trends are and how the demand is changing

Design a talent systems that aligns to the business strategy and insights and with buy in

Help where needed, particularly around early talent

24

26

45

319

62

114

231

45

37

85

812 1

6

Level 6 Level 4Level 5 Level 2 +3

19

Exec

46% 43% 38% 30%

54% 57% 62%70%

390 167407 39

17%

Internal promotions

External hires

Exit rates

8% 7% 7%

Totals

It helps to understand the shape of the business and the flows

25

Level 6 Level 4Level 5 Level 2 +3 Exec

Extrapolation of future business shape by end of 2018And to understand the future shape

Current shape of the business

26

Level 6 Level 4Level 5 Level 2 +3 Exec

25%50%

70% 70%

75% 50%

30% 30%

Internal promotions

External hires

17% 12% 10%Exit rate

And to then understand which initiatives need to be in place to keep the business the right shape

27

To accelerate the performance of teams and access to great

people

Accelerate the performance of teams by helping them to work better together in the new world and get to value quicker. Start by focusing on key leaders

Simplify key Talent processes, starting with recruitment, to get faster access to the right talent

Accelerate the development of key people to provide faster access to ready talent when needed

Support the business to work smarter with new systems and more established global ways of working.

How we win

Speed Collaboration InnovationThe difference we will make

Strategic intent

Where we will play

1. Invest in leadership development around creating a GB approach to change, innovation and collaboration

2. Align top 60 behind the talent strategy, talent beliefs and taking talent work back into the business

3. Support taking the leadership work back into the business as a “Participation sport”

4. Access to good enough development suite for all

Kick starting through leadership

Simplification

Building talent flow

1. Simplify and roll out new global recruitment process from “attract to offer”

2. Build relevant selection criteria for recruitment and promotion and train managers

3. Build a new Employee Value Proposition aimed at more junior hires

4. Build new on-boarding processes5. Actively manage new cohorts of starters

1. Invest in succession support for level 4 and actively manage the “chessboard” of experiences and moves for this group

2. New transition to leadership support programmes at each level

3. New professional early career entry level programmes

4. New “unique contributor” offer for specialists

5. New Potential model

Working smarter

1. Marketing Way roll out2. Talent data systems3. Full suite of functional academies4. Global mobility to support initiatives5. Review location of Global ways of working

The overall approach is focused around clear strategic choices and a phased approach to actions

William Jodrell ~ Partnerwill@thegreenhouseproject.co.uk+44 7968 439 701

Rupert Angel ~ PartnerRupert@thegreenhouseproject.co.uk+44 7710 344 493