The document discusses a presentation by Knowledge Infusion on reassessing talent management strategies in a down economy. It provides an agenda for the presentation which includes an overview of Knowledge Infusion, the importance of a talent management strategy during an economic downturn, reevaluating the importance of talent to business strategy by focusing on retention and productivity and prioritizing critical talent segments, and upgrading talent pools and enhancing mobility. It also discusses Knowledge Infusion's optimization services.

1. Knowledge Infusion
Optimize Series
May 14, 2009

3. Today’s Presenters
Heidi Spirgi Suzanne Rumsey
President Principal Consultant
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4. Part Two
Reassess Your Talent Management
Strategy

5. Agenda
• Overview of Knowledge Infusion
• The Importance of a Talent Management Strategy in a Down
Economy
• Reevaluate Importance to Talent to Business Strategy
• Recalibrate Your Talent Strategy: Focus on Retention and Productivity
• Prioritize Critical Talent Segments
• Upgrade Your Talent Pools and Enhance Mobility
• Knowledge Infusion Optimization Services
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6. About Knowledge Infusion
• Leader in human capital Knowledge
management, talent management &
social collaboration consulting,
advisory and intelligence services Passion Talent
• Ranked #3 fastest growing private
companies in region Partnership Celebration Trust
• Headquartered in Minneapolis,
Minnesota with offices throughout US
• Over 200 global customers including
MetLife, Turner Broadcasting (CNN),
Luxottica Group (Sunglass Hut), Intuit,
Fairmont Raffles Hotels, Clorox, Target
• Largest online human capital
management community…with over
2,500 members
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7. Strategic Advisors Throughout Your Journey
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8. Customers
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9. Continue to Advance
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10. Why Action NOW is So Key
• Significant progress made in past 5 years
• Talent Management adolescence
• Talent Intelligence infancy
• Social Collaboration infancy
• New technology paradigms
• SaaS, Cloud Computing, Social Software
• HR profession in massive transition
• Skills
• Experience
• Education
• Measurement
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11. Why Have a Talent Management
Strategy In a Down Economy

12. Polling Question
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13. Talent Management Recognized as Competitive Tool
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14. Polling Question
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15. War for Talent Continues
The ―War for Talent‖ has not gone away in the down economy.
It’s just gone guerilla!
Source: http://www.tropicthunder.com/home.html?deepLink=dvd
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16. Current Talent Realities
Even during these turbulent times, investment in talent
is critical…
In a survey of 160 financial services executives, 70% acknowledged that Talent Management is
one of the top people issues most critical to organizational success
Upgrading Talent
―A downturn can give smart companies a chance to
upgrade their talent. As deteriorating performance
forces increasingly aggressive head count
reductions, it’s easy to lose valuable contributors
inadvertently, damage morale or the company’s
external reputation among potential employees, or
drop the ball on important training and staff-
development programs.
- The McKinsey Quarterly
Source: Deloitte Consulting, Global Talent Management – Formulas for Success in Financial Services, 2008
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17. Definition of Talent Management
The management of the
supply, demand and productivity of
talent to achieve optimal business
performance and in direct
alignment with organizational
goals.
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18. Talent Management Strategy Fills in the White Space
Insight into Talent Develop Key Talent
Manage Critical Roles
Manage the Bench Optimize Deployment
Mobilize Talent
Retain & Engage Develop Talent Pipeline
Talent Management Strategy
Compensation
Management
Management
Performance
Succession
Acquisition
Planning
Planning
Learning
Career
Talent
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19. Recalibrate Your Talent
Management Strategy: Focus on
Retention & Productivity

20. Current State
• Talent management strategies created when economy was
flush have been shelved as too expensive to implement
• Focus on acquiring best talent from external market and
retaining it
• Hiring freezes and layoffs
• HR budgets for talent management programs cut
• Focus on retention of high performing talent in critical roles
• Need all employees to be more productive, do more with less
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21. Number of layoffs since
Nov. 1, 2008, at America's
500 largest public
companies*:
558,087
*Total announced layoffs at America’s 500 largest public companies as measured by a composite ranking of sales, profits, assets and market value from Nov. 1 2008
through May 7, 2009. Includes layoffs at subsidiaries, joint ventures, and majority owned companies.
Source: Forbes Layoff Tracker: http://www.forbes.com/2008/11/17/layoff-tracker-unemployement-lead-cx_kk_1118tracker.html?partner=relatedstoriesbox
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22. Top Talent Is Ripe for Cherry Picking!
How Top Talent Is Dealing with Tough Times on Wall Street…
• Loyalty
• The # of employees who feel loyal to their company has fallen 42% over
the last year
• The number who trust their company is down 41% Retention of Top Talent
• Top Talent Flight Risk “If you have strategic advisory skills,
• In the wake of mass layoffs troubled firms are finding that many strong business acumen and a
quot;survivorsquot; look elsewhere depth of functional expertise, you
• 64% are considering leaving are in high demand, even in today’s
• 24% are actively looking for a job turbulent times.”
• Precisely the wrong talent (top performers w/ other options) are heading
for the door - Sally Fisher, Deloitte Consulting
• Top Female Talent
• 84% of women in this study are considering leaving—compared to 40%
of men
• quot;The cost benefit equation just tipped. Stress is up, comp is down and I
sure could use time with my kids. This is a year to sit out.quot;
Source: BusinessWeek, How Top Talent is Dealing with Tough Times on Wall Street, October 3, 2008
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23. Focus on Retention
With the abundance of talent on the market - and fewer opportunities available - it’s easy for firms to
grow complacent about retention. However, these employees’ experiences TODAY will determine
whether they stay when the economy recovers.
Talent Management Imperative Retention Drivers:
• Clear Succession Plans signal to top talent
―We can’t afford to not focus on people; that they are valued and that there is a clearly
we are in an intellectual capital business. marked path for their success
It is more important than ever that we are
connecting our emerging leaders and • Workforce Plans focused on creating a more
diverse talent with our CEO and senior flexible employee base help to avoid the
leadership, as well as working directly with massive layoffs that often come with an
line managers to equip them with tools for economic downturn and inevitably take some
managing teams during times of top talent down with them
unprecedented change.”
• Training and Development focused on
-Barbara Cona Amone, retooling skills and filling in development
UBS Investment Bank needs produces more proactive organizations
Source: Heidrick & Struggles, Human Resources Challenges in Financial Services, September 2008
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24. Productivity: Need to Turn it Around
In Q1 2009, business productivity (output per employee
hour) grew by 1.1%, BUT only because employee hours
declined more than output
• Both output and employee hours
declined from Q4 2008 by 7.8% and
8.8%, respectively
• From Q3 to Q4 2008, worker
productivity (output per employee
hour) in the nonfinancial corporate
sector declined by 3.9%.
Source: US Bureau of Labor Statistics, Economic News Release 5/7/09,
http://www.bls.gov/news.release/prod2.nr0.htm
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25. The “Jobless Recovery”
A jobless recovery or jobless growth
is a phrase used by economists to
GDP describe the recovery from a recession
which does not produce strong growth in
employment. Source: http://en.wikipedia.org/wiki/Jobless_recovery
2005 06 07 08 09 10 11 12
Source: http://www.reuters.com/article/reutersEdge/idUSTRE5465R320090507
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26. Productivity Drivers
• Focus on employees who stay with the organization
• Clearly articulate company direction and objectives
• Clearly articulate how employees align and contribute value,
and reinforce often
• Provide opportunities and tools to support knowledge
creation, sharing and capture
• Remove barriers to getting the job done – identify
unnecessary process steps, outdated policies, etc.
• Recognize work well done
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27. What You Can Do Now
• Prioritize and assess talent management processes that
enable retention, increase productivity
• Rank target processes for transformation
• Eliminate processes that hinder productivity
• Better utilize talent management technology already own
• Understand what free technologies may be available
• Develop new processes to:
• Leverage untapped existing functionality to enhance productivity
• Identify offline change
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28. Case Study – Manufacturer and Retailer
• 5% reduction in force
• Manual, silo’d talent management business processes
• Lack of consensus on definition and value of talent
management
• HR perceived as non-responsive to the business
Knowledge Infusion Services Customer Outcome
• Talent Management Exec. Education • Integrated business-led TM strategy
• Talent Management StrategyMap • Executive Talent Council
• Talent Management Best Practices • TM Process and Tech Council
Workshop • New HR Org Structure
• Talent Intelligence Workshop • Approved Business Case for TM Suite
• Governance • Integrated HR response to economic
downturn
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29. Prioritize Critical
Talent Segments

30. Keeping Critical Roles Filled with Top Talent
• Profile the role
• Assess current incumbents against the success Keep Building …
profile
“When the top line looks shaky
• Create development plans for current and the bottom line worse, the
temptation is to go after
incumbents to fill gaps discretionary spending. Fine -
but do not consider product
• Create succession management plans to development, innovation, and
ensure talent pool exists for role brand building optional.
Sacrificing your future for a
• Create development plans for potential slightly more comfortable
successors / talent pools present is not worth it. If you
keep building, you can come
• Execute development, recruitment & back strong.”
succession plans
Ram Charan, Fortune,
Feb 12th, 2008
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31. Sample Talent Segmentation Matrix
Strategic Critical
Strategic Value
Role role
Commodity Necessary
role role
Operational Value
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32. Define Criteria for a Critical Role
• Creates value for the organization
• Increases revenues or
• Reduces costs
• Creates competitive advantage / differentiates company in the
market
• Produces ―moments of truth‖ for customers
• Has autonomy in decision making
• High opportunity cost to not having role at all
• High cost to having wrong talent in role
• Hard to fill
• Specialized knowledge
• Reducing performance variability of those in role leads to increased
value for organization
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33. What You Can Do Now
• Establish strong relationship with strategic planning team
• Identify roles absolutely critical to sustain the business today
and grow it tomorrow
• Identify sources of talent to keep critical roles filled
• Leverage current talent management / HR systems to gather,
filter and model data on talent pools feeding critical roles
• Develop new processes to:
• Inventory talent
• Identify knowledge, skills and competencies for critical roles
• Develop and grow talent pool
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34. Case Study – Global Financial Services Organization
• Transforming from loose international to globally led
organization
• Manual talent management processes
• 8% layoffs over past 6 months
• Inconsistent and unstructured approach to managing key roles
Knowledge Infusion Services Customer Outcome
• Talent Management StrategyMap • Redeployed recruiters to develop
• Talent Management Rapid Solution talent plans for each business unit
Selection • New role of talent consultants
• Governance • Identified critical roles at all levels of
the organization
• Selected talent management suite
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35. Upgrade Your Talent Pools and
Enhance Mobility

36. Current State
• Internal talent pools neither proactively identified nor well-
developed
• Development programs created in silos and/or focused solely
on leadership levels
• Lack of common language to describe talent hinders mobility
• Everyone believes they are unique in the organization
• No central ownership of the processes in an organization
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37. Know What You Have
• Proactive downsizing
• Understand your talent pool to make fast, smart decisions
• HIPOs, Leaders, Top Performers, Critical Roles
• Gain insight into the talent who will enable survival
An Increased Focus on Talent Mgmt …
• Prepare to redeploy top talent
• Relocation quot;In turbulent times more than any
• Flight Risk other, there is not only the
• Skill/Competencies opportunity, but the need for HR to
• Interests provide leadership to the business.
The ability to attract and retain
• Enable an enterprise view of talent workers when times are tough really
requires leaders to be at their best.”
• Executive mandate to re-mobilize talent
Dave Gartenberg, HR director at Microsoft UK
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38. Polling Question
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39. Up-skill Your Workforce
Opportunity to Poach
• Watch your competitors Competitor’s Talent
• Watch your local market Settled loyalists
(about 30% of workers) are
happy where they are and hard
to displace.
• Identify companies with talent that Poised Loyalists (about 11% of
you need workers) are happy but could be
enticed to move.
Poised Opportunists (about
• Re-deploy recruiters to targeted 59% of workers) are actively
strategies/markets/companies looking. They've posted their
resumes, will apply for your job,
and are amenable to job offers.
• Target candidates with new Source: Finding Keepers (new
book released by Monster in Jan
marketing strategies 2008)
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40. What You Can Do Now
• Focus on building talent pools for critical roles
• Build a ―talent factory‖ culture
• Standardize talent review processes, criteria, language
• Measure and reward managers for talent development and loss of
talent to other parts of the organization
• Evangelize value of lateral movement
• Market jobs/experiences/opportunities
• Design development programs that emphasize on-the -job
and social learning
• Ensure business leaders understand value of talent mobility
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41. Case Study – Large Global Retailer
• Business growth outside the US
• Organizational culture a competitive advantage
• Multiple talent review processes
• Lines of business unable to share talent
Knowledge Infusion Services Customer Outcome
• Talent Management Best Practices • Standardized processes to assess talent
Workshop • Talent inventory process to capture
• Talent Management StrategyMap essential talent data
• Business Process Transformation and • Recognition that mobility across
Design Workshops businesses and geographies should be
key talent strategy
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42. Actions to Advance
• Recalibrate talent management strategy:
Focus on retention and productivity
• Improve today’s employee experience
• Focus on productivity drivers
• Prioritize critical talent segments
• Strategize to keep top talent in critical roles
• Segment roles
• Identify critical roles
• Upgrade talent pools and enhance
mobility
• Know what you have
• Upskill workforce
• Build ―talent factory‖ culture
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43. Service Offerings to Meet Your Needs and Budget
Project
Engagement
Assessment
and
Optimization
Workshops
Consulting Knowledge Infusion Services
On Demand
Define or Refine Strategies Related to:
Center of •Talent Management Best Practices
Excellence
•Business Process Maturity and Design
•Technology Assessment and Planning
•Technology Architecture
•Process and Technology Deployment
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44. Continue the Conversation
• Download the presentation on the Center of Excellence
www.knowledgeinfusion.com/coe
1) log-in or register
2) go to Talent Management
Forum
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45. Talent Management Forum
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47. Thank You