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Talent management as
conversations
Why we need to talk about careers



Instead of getting bogged down in the complexities of
the technology of HR information systems or the current
muddle of assessment methodology, we can deploy
simple online technology to ask the right people the
right questions. And if we have conversations we can do
something with the answers to connect the talent
management agenda to career development.
Challenges in fighting the “war for talent”
                                              The “War For Talent” continues, and organisations still
    Right now our talent                      experience problems in:
    management systems measure
                                                   connecting the discussion of future business
    HR-related impact, but many of                 challenges to the review of current and emerging
    the reasons employees stay or                  talent
                                                   differentiating levels of current performance and
    go, grow or stagnate are not                   future contribution to target investment on key
    addressed.                                     individuals
                                                   going from plotting the conventional 9 grid
    Lisa Haneberg                                  performance-potential matrix to put in place the
                                                   practical measures that drive retention and career
                                                   progression
                                                   involving line managers fully in the talent
                                                   management process to engage their interest and
                                                   commitment to the follow through
                                                   connecting talent priorities to individuals and their
                                                   career development




                                               This article outlines how the complexity of talent
                                               management frameworks, practices and systems
                                               can make it difficult to have conversations.

                                               And how a rethink in our assumptions about the
                                               dynamics of success and a shift in how we manage
                                               talent intelligence makes it easier to have the kind
                                               of discussions that drive career development and
                                               build talent “from the bottom up”.


© AM Azure Consulting Ltd 2012                                                                             2
Going beyond top down talent management
 Career conversations between                   Workforce planning and succession management are of course
                                                important disciplines in risk assessment and strategic decision
 managers and employees are the single
                                                making. This is sensible corporate governance to identify those
 most important factor in building,             roles that are becoming increasingly critical to the organisational
 motivating and developing a highly             future to highlight succession coverage and exposure.
 skilled professional work force. As
 important as ever, these career                But often this is talent management as an exercise in impression
                                                management to provide key stakeholder groups with an analysis
 conversations are becoming more                of the resourcing opportunities and risks facing the organisation.
 difficult.                                     No bad thing, but succession plans and talent analytics do not
                                                advance the organisational agenda to develop technical,
                                 Caela Farren
                                                professional and management capability or build organisational
                                                responsiveness and resilience.

                                                Individuals think “me and my career” not succession.
                                                A talent management strategy that fails to connect to
                                                the employee career experience will find itself lost in
                                                the abstraction of talent metrics and organograms.




© AM Azure Consulting Ltd 2012                                                                                        3
The heads of the department have recently conducted a talent review exercise:
Each of the heads now has the responsibility of providing face-to-face feedback with their reports.

 Why would any sensible                       Individual:
                                               Individual:   So how did the talent review go?
                                                              So how did the talent review go?
 line manager want to                         Head:          Pretty good I Ithink…OK.
                                               Head:          Pretty good think…OK.
 have a conversation with
                                              Individual:    As we’ve discussed I Ifeel really good about the initiatives this
 a high performing                             Individual:    As we’ve discussed feel really good about the initiatives this
                                                             organisation is taking. I Iwant to be part of its expansion. I Ifeel
                                                              organisation is taking. want to be part of its expansion. feel
 employee who has been                                       I’ve really got to grips with my role and I Ithink I’m ready to
                                                              I’ve really got to grips with my role and think I’m ready to
                                                             move on to take on aabigger job. I’ve been looking through this
 evaluated as low                                             move on to take on bigger job. I’ve been looking through this
                                                             prospectus…this MBA programme looks strong…
                                                              prospectus…this MBA programme looks strong…
 potential?
                                              Head:
                                               Head:         Well we reviewed… the problem is that at this moment in time
                                                              Well we reviewed… the problem is that at this moment in time
                                                             you weren’t seen as being high potential…
                                                              you weren’t seen as being high potential…
                                              Individual:
                                               Individual:   What….but I’m performing well…you said so in our last
                                                              What….but I’m performing well…you said so in our last
                                                             appraisal. You know I’m keen, I’m motivated, I’m really keen to
                                                              appraisal. You know I’m keen, I’m motivated, I’m really keen to
                                                             learn…so why am I Inot seen as high potential?
                                                              learn…so why am not seen as high potential?
                                              Head:
                                               Head:         It’s quite difficult to explain. Potential well ..it’s more than how
                                                              It’s quite difficult to explain. Potential well ..it’s more than how
                                                             well you’re doing now..it’s…you’re not seen as ready to
                                                              well you’re doing now..it’s…you’re not seen as ready to
                                                             progress.
                                                              progress.
                                              Individual:
                                               Individual:   Why? What am I Idoing that’s wrong? What am I Inot doing? Tell
                                                             Why? What am doing that’s wrong? What am not doing? Tell
                                                             me.
                                                             me.
                                              Head:
                                               Head:         Look. This wasn’t my decision. There is aafeeling with the other
                                                              Look. This wasn’t my decision. There is feeling with the other
                                                             guys that you’re not…you don’t quite …you lack gravitas.
                                                              guys that you’re not…you don’t quite …you lack gravitas.
                                              Individual:
                                               Individual:   What does that mean?
                                                             What does that mean?
                                              Head:
                                               Head:         I Idon’t know…you just…can we discuss this later, I’ve got
                                                                 don’t know…you just…can we discuss this later, I’ve got
                                                             another meeting scheduled in five minutes.
                                                               another meeting scheduled in five minutes.




© AM Azure Consulting Ltd 2012                                                                                                       4
Talent management as a series of powerful conversations
Do our frameworks of success,           1. within the Board to ensure that risks have been highlighted and
assessment processes and the flow of       that contingency plans are in place? This is also about the Board
information about talent make it easy      challenging the CEO and top team about the stewardship they are
                                           providing to identify options for internal and external succession.
to have high impact conversations?
                                        2. between the CEO and the top team to create an ongoing dialogue
                                           about the future of the business, the scenarios it faces and
                                           available talent? This conversation helps to rethink resourcing
                                           requirements in the face of different strategic challenges. It also asks
                                           tough questions about the role that each team member is personally
                                           playing in the development of the organisation's next generation of
                                           leadership.

                                        3. between each top team member and their executives and the
                                           ongoing discussion about business priorities, capability and the
                                           importance of proactive talent management within each business area.
                                           This conversation is also played in talent reviews to break down silos
                                           and overcome any cross functional conflict that might be constraining
                                           the free flow of talent.

                                        4. between line managers and their direct reports? This is the candid
                                           review of performance and future contribution, and the conversations
                                           that challenge under-performance, motivate the talented individual who
                                           is coasting, and provide career coaching to guide those talented
                                           individuals.




© AM Azure Consulting Ltd 2012                                                                                        5
Three big questions in talent intelligence
                                             What frameworks are in place to inform the judgements and
                                             decisions we make about individuals?
                                                   the factors that are key to the organisational “model of
                                                   success”
                                                   how the outputs of past success are integrated with the
                                                   inputs of future success


                                             Who conducts the assessment, using which methods?
                                                 top down, largely based on the personal judgement of the
                                                 top team?
                                                 line management evaluations?
                                                 HR driven, drawing on additional data (e.g. assessment
                                                 centres)?
                                                 bottom up in which individuals complete career profiles?
                                                 the process of data consolidation and integration to
                                                 summarise talent intelligence
                                                 the choice of technology ranging from a paper shuffle of
                                                 returns, ad hoc email attachments, integrated talent
                                                 management vendor solutions, or dedicated bespoke
                                                 systems


                                             How is talent data used in decision making and action
                                             planning?
                                                  processes for review, debrief and development planning
                                                  optimising the impact of talent reviews and career
                                                  conversations




© AM Azure Consulting Ltd 2012                                                                                6
What frameworks do we use? And where not to start
Nine box plotting is the standard methodology of talent management,
with a legacy that can be tracked back to the 1950s, a very different
world to the one in which we now operate. Mapping evaluations of




                                                                                           High
                                                                                                  Reassign
current performance against a forecast of potential to take on greater
responsibility in future has the virtue of simplicity and speed. But it                                           Prepare for




                                                                               POTENTIAL
may be a tool that is no longer able to differentiate today’s                                                     progression




                                                                                           Med
professional and management talents or tomorrow’s career
                                                                                                  Review
expectations and aspirations.

The basic definition “the work that one can do in future” is
obvious. But it doesn’t answer: which types of work; over what time
                                                                                                              Question




                                                                                           Low
scales in future? Presumably not any and every work activity.                                     Bad hire               Consolidate
                                                                                                               mark

It is a vague concept, and typically little more than a loose evaluation
to indicate some kind of value to the organisation.                                                Low          Med         High

Attempts at precision are misguided. Spuriously scientific, the
                                                                                                         PERFORMANCE
charts of potential by time scale (readiness to progress within a defined
period) and level (the capacity to attain a defined organisational level)
are unrealistic given the realities of human nature and development
and organisational change.

Defining potential is trying to “hit a moving target”. Why does the                                       The nine-box
listing of high potential managers keep changing year after year?
Because strategy, structure and culture and operating requirements                                       category system is
don’t stand still.
                                                                                                         crude and clumsy
The potential word doesn’t make it easy for line managers to have
career development discussions. Meaningful development focuses
on the individual and the specific issues they face within their current                                 Professor Adrian Furnham,
role or in realising their aspirations for progression. Overall indices that                             University College London
provide an evaluation of “bad to good” do little to set the scene for a
constructive conversation.

© AM Azure Consulting Ltd 2012                                                                                                         7
An alternative framework for sustainable success
We need to rethink our fundamental assumptions to implement
insightful models of the dynamics of sustainable success.

Firstly to make sense of the proliferation of different theories and
frameworks; everything from corporate values, experience,
competency and expertise, to personality and emotional
intelligence

Secondly, to provide a blue print to improve the processes for
assessment, deployment and development to make it easier for
line managers to have career conversations.

Our approach has been to work backwards from the questions
which the top team ask of their organisation’s emerging
leadership. Based on our experience of working with different
top teams in succession reviews, it is clear that Boards do not
systematically work through the formal competency
documentation.

Instead they focus on four overarching areas¹ :
      is this individual credible?

      is this individual capable?

      does this individual display character?

      is this individual proactive in career management?




¹ Rethinking Leadership Realities: the dynamics of the Four Cs

© AM Azure Consulting Ltd 2012                                         8
Rethinking the dynamics of success: Four Cs


 how credible is this individual?
 how credible is this individual?                                                          Credibility
                                                                                            Credibility
      do they have a track record of relevant experience and outstanding
       do they have a track record of relevant experience and outstanding
      achievement?                                                                 background credentials and
                                                                                   background credentials and
       achievement?
      do they have the respect of their peers?                                 connections to build confidence as a
                                                                               connections to build confidence as a
       do they have the respect of their peers?
      have they built up a reputation across the industry?                               potential leader
                                                                                         potential leader
       have they built up a reputation across the industry?

 how capable is this individual?
 how capable is this individual?
      what is the breadth and depth of management competency?
       what is the breadth and depth of management competency?                              Capability
                                                                                            Capability
      which technical expertise and skills can be deployed with
       which technical expertise and skills can be deployed with               the functions, tasks and skills to be
                                                                                the functions, tasks and skills to be
      proficiency?
       proficiency?                                                             deployed to meet the problems of
                                                                                 deployed to meet the problems of
      what kinds of business challenge will they be most and least
       what kinds of business challenge will they be most and least               leadership and to be effective
                                                                                   leadership and to be effective
      effective in tackling?
       effective in tackling?
      what indicators are there of progression to take on greater
       what indicators are there of progression to take on greater
      responsibility?
       responsibility?
                                                                                            Character
                                                                                            Character
 does this individual display character?
 does this individual display character?                                         the values and attributes which
                                                                                  the values and attributes which
       is there integrity of ethical purpose?
        is there integrity of ethical purpose?                                   provide leadership purpose and
                                                                                 provide leadership purpose and
       are they resilient under pressure?
        are they resilient under pressure?                                         meaning for the longer-term
                                                                                    meaning for the longer-term
       do they have the distinctiveness to stand out as different?
        do they have the distinctiveness to stand out as different?

 does this individual understand career realities?
 does this individual understand career realities?
       is the individual’s career motivation consistent with organisational
        is the individual’s career motivation consistent with organisational           Career Management
                                                                                       Career Management
       requirements?
        requirements?                                                          self management and political savvy
                                                                               self management and political savvy
       is this individual effective in self management?
        is this individual effective in self management?                        to navigate through organisational
                                                                                 to navigate through organisational
                                                                                              realities
                                                                                               realities




© AM Azure Consulting Ltd 2012                                                                                          9
Four Cs and career mapping
The aim of a talent framework is
to map out how the building
blocks of effectiveness combine
to identify different “career
                                                                         Career Risk
                                                                         Career Risk
segments” that inform career
progression options and
development planning.               CREDIBILITY
                                    CREDIBILITY
                                                                        Career Review
                                                                        Career Review
This is to move from the index of
potential, essentially “good vs.
bad guys”, to think more                          The review of data
                                                   The review of data
insightfully about the range of                   from different
                                                   from different          Career
                                                                           Career
different professional and          CAPABILITY    sources to
                                                   sources to           Specialisation
                                    CAPABILITY                          Specialisation
management permutations, and                      identify key
                                                   identify key
identify the specific responses                   patterns and
                                                   patterns and
that will accelerate development.                 inform
                                                   inform                 Career
                                                                           Career
                                                  conclusions and
                                                   conclusions and       Redirection
                                                                         Redirection
                                                  specific career
                                                   specific career
                                      CAREER
                                      CAREER      development
                                                   development
                                    MANAGEMENT
                                    MANAGEMENT    recommendations
                                                   recommendations
                                                                        Career Focus
                                                                        Career Focus



                                                                        Career Boost
                                                                        Career Boost
                                    CHARACTER
                                    CHARACTER


                                                                        Career Jump
                                                                        Career Jump




© AM Azure Consulting Ltd 2012                                                           10
Four Cs and powerful questions
Powerful questions to evaluate:                           If we ask the right questions in the right way we
                                                          may gain a better understanding of individuals,
Credibility                                               and those whose career is best advanced
   Track record of business achievement                   through in-depth technical excellence, or who
   Exposure to different sectors
                                                          will broaden their expertise to build professional
   Business experience
                                                          mastery, or tackle organisational challenges
   Organisational knowledge
   Peer regard and profile                                outside their functional background to develop
   Senior team visibility                                 versatility, or those best equipped to take on
                                                          positions of business leadership. Or the
Capability                                                individuals whose career interests are best
  Breadth and depth of technical/professional expertise   served in another part of the organisation or to
  Management competency and versatility                   pursue a different career path.
  Exceptional talents
  Performance, impact and improvement

Character
  Character in action
  Question marks

Career Management
  Career aspirations and path
  Development commitment
  Professional contribution
  Political savvy
  Risks of derailment




© AM Azure Consulting Ltd 2012                                                                             11
Who conducts talent assessment?
If the first challenge is to put in place a framework of   Does the top management team conduct a first cut overview of the
success that sees talent management through the            population to identify “key individuals”. This approach has the
eyes of the individual and map out different career        advantage of speed and efficiency. Typically however the top team
patterns, the second challenge is to implement             may lack meaningful exposure to the target group and the discussion
processes for assessment. What assessment                  relies on “corporate hearsay” and subjective opinions.
methods are used, who takes responsibility for this
assessment, and how is this information integrated to      Or, do we ask line management to provide detailed evaluations of
inform decision making and action planning?                their direct reports for review with their peers in a calibration
                                                           exercise? Here the virtue is one of greater access to work
                                                           performance to identify indicators of talent and progression. It also
                                                           reinforces line management accountability for the development of
                                                           their people. This strategy to be effective of course requires maturity
                                                           of managerial judgement. It also runs the risk of the “beauty parade”
                                                           in which evaluations are more a reflection of parochial functional
                                                           interests than broader organisational needs.

                                                           Alternatively, individuals provide a self-assessment of experience,
                                                           capability and motivation as part of talent information flows. At best
                                                           this accesses the detail of accomplishments, technical know-how,
                                                           skill, and career aspirations from those who know. At worst, this can
                                                           be an exercise in impression management in which self promoting
                                                           advancement out-manoeuvres genuine expertise and experience.

                                                           Or do we think that talent management professionals, accessing a
                                                           range of assessment options, should kick-start the talent information
                                                           flow? In this scenario assessment specialists introduce psychometric
                                                           testing and assessment centres to establish greater objectivity and
                                                           consistency within talent intelligence.

                                                           And just how useful is objective assessment?




© AM Azure Consulting Ltd 2012                                                                                                       12
How good is the “assessment industry” at predicting future effectiveness anyway?
 What difference does objective assessment make                               General cognitive ability continues to be the most stable and consistent
 to talent management practice? Here, there are two                           predictor of work performance (around .5) across a wide range of jobs and
 questions:                                                                   occupations, with validity increasing with the complexity of the work task.
    1. the empirical question: what predictive
                                                                              Assessment Centre validity has been steadily falling since the glory days
       power can objective assessment in
                                                                              of the 1970s; the latest review in 2009 suggests a validity of around .27.
       principle contribute to improve talent
       evaluations?
                                                                              Personality tests continue to be the focus of much controversy. Although
    2. the practical question: what impact does
                                                                              decent measures of the Big Five claim to provide a combined validity of
       this predictive power in reality have on
                                                                              around .39, it is questionable how much predictive power is in fact achieved
       organisational decision making?
                                                                              in selection scenarios because of the complexities of impression
                                                                              management in self report measures.
The quick answer to the first question is that
objective assessment can add significant value to
                                                                              The initial studies claiming breakthrough findings for Emotional
talent assessment, but nothing remotely of the order
                                                                              Intelligence validity in fact proved nothing of the sort. EQ measures seem
claimed by much of the assessment industry.
                                                                              to add little predictive power to conventional psychometric tests.
Clearly specific tools and instruments will have
                                                                              The interview, in large part due to the introduction of greater structure, has
more or less validity in any given predictive
                                                                              improved its validity, potentially to the order of .3 to .4, with the indication
scenario, but we can summarise the overall
                                                                              that interviews which focus on past behaviour provide greater predictive
patterns in the evidence base of the common
                                                                              power than those based on responses to future situations.
methodologies to identify the relative predictive
power of the assessment options¹.
                                                                              360° feedback data indicates promise, in particular peer evaluations of
                                                                              colleague effectiveness and impact, with validity of around .36.
The validity coefficient, an index indicating the strength of
the relationship between the assessment predictor and                         Situational Judgement Tests indicate a validity of around .26, but most
the work outcome, on a scale from 0 (no prediction) to                        evidence is based on concurrent studies utilising job incumbents rather than
1.00 (perfect prediction) can also be expressed as a
                                                                              applicants.
percentage of explained variance in effectiveness. A
validity coefficient of 0.3, for example, amounts to a
prediction of 9% of future effectiveness.                                     Biodata, structured questions that capture information about past
                                                                              experience and achievements, have validity around the .32 mark.


¹ http://www.amazureconsulting.com/files/1/39199746/FairyTalesFactsPredictingLeadershipEffectiveness.pdf
 © AM Azure Consulting Ltd 2012                                                                                                                              13
Assessment and the integration challenge
Despite the extravagant claims, there is no indication
that the assessment experts have made serious
inroads to improve the predictive power of
assessment methods over the last 20 - 30 years. Yes,
objective assessment has the potential to improve
talent decision making, but its success largely resides                                                                                                                   Curriculum Vitae
                                                                                                                                                                          Curriculum Vitae                                                                       APPRAISAL
                                                                                                                                                                                                                                                                 APPRAISAL                                                                   Top Management Review
                                                                                                                                                                                                                                                                                                                                             Top Management Review
in a short test of cognitive mental ability. And the                                                                                                                      Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed
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                                                                                                                                                                                                                                                                                                                                                Potential
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                                                                                                                                                                                                                                                                                                                                               Potential
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                                                                                                                                                                                                                                                                                                                                                                                                             magna aliguam erat


predictive stakes provided it is conducted in a
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                                                                                                                                                                                                                                                                 in hendrerit in vulputate velit esse
                                                                                                                                                                          quis nostrud exerci tution ullam Ut wisis enim ad minimnisi ut
                                                                                                                                                                             magna aliguam erat volutpat. corper suscipit lobortis veniam,
                                                                                                                                                                                                                                                                    in hendrerit in vulputate velit esse
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                                                                                                                                                                             quis ex ea commodo consequat. Duis te feugi facilisi. Duis                          molestie consequat, vel illum dolore
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reasonably structured way.                                                                                                                                                eros et accumsan illum dolore eu feugiat nulla facilisis at vero
                                                                                                                                                                             consequat, vel et iusto odio dignissim qui blandit praesent                         accumsan et iusto odio dignissim                                                             Duis te feugi facilisi. Duis
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                                                                                                                                                                                                                                                                                                                                                                vulputate velit esse molestie     blandit praesent dignissim zzril
                                                                                                                                                                                                                                                                                                                                                                                                        iusto odio luptatum qui
                                                                                                                                                                                                                                                                 delenit au gue duis dolore te facilisi.                                                    consequat, vel illum dolore eu          blandit praesent luptatum zzril
                                                                                                                                                                                                                                                                                                                                                                                                   delenit au gue duis dolore te
                                                                                                                                                                                                                                                                    delenit au gue duis dolore te facilisi.                                                  feugiat nulla vel illum at vero eu
                                                                                                                                                                                                                                                                                                                                                               consequat, facilisis dolore
                                                                                                                                                                                                                                                                                                                                                                                                     delenit au gue facilisi.
                                                                                                                                                                           Ut wisis enim ad           Lorem ipsum             Lorem ipsum dolor                                                                                                                 feugiat nulla facilisis at vero         feugat nulla duis dolore te
                                                                                                                                                                              Ut wisis enim ad           Lorem ipsum                                                                                                                                               eros et accumsan
                                                                                                                                                                           minim veniam, quis         dolor sit amet,         sit Lorem ipsum dolor
                                                                                                                                                                                                                                   amet,                                                                                                                              eros et accumsan
                                                                                                                                                                                                                                                                                                                                                                                                          feugat nulla facilisi.
                                                                                                                                                                              minim veniam, quis consectetuer
                                                                                                                                                                           nostrud exerci tution         dolor sit amet,          sit amet,
                                                                                                                                                                                                                              consectetuer
                                                                                                                                                                              nostrud exerci tution adipiscing elit, sed
                                                                                                                                                                           ullam corper suscipit         consectetuer             consectetuer
                                                                                                                                                                                                                              adipiscing elit, sed
                                                                                                                                                                           lobortis nisi ut aliquip diem nonummy sed
                                                                                                                                                                              ullam corper suscipit      adipiscing elit,     diem nonummy sed
                                                                                                                                                                                                                                  adipiscing elit,
                                                                                                                                                                           exlobortis nisi ut aliquip nibh euismod
                                                                                                                                                                               ea commodo                diem nonummy             diem nonummy
                                                                                                                                                                                                                              nibh euismod                           Lorem ipsum dolor sit amet, consectetuer adipiscing elit,
                                                                                                                                                                                                                                                                      Lorem ipsum dolor sit amet, consectetuer adipiscing elit,
                                                                                                                                                                                                                                                                     sed diem nonummy nibh amet, consectetuer ut lacreet elit,
                                                                                                                                                                                                                                                                      sed diem ipsum dolor sit euismod tincidunt ut lacreet elit,
                                                                                                                                                                                                                                                                                                                                                                            Performance
                                                                                                                                                                              ex ea commodo
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                                                                                                                                                                                                      tincidunt tution            nibh euismod
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                                                                                                                                                                                                                                                                         Lorem ipsum dolor sit euismod tincidunt adipiscing


And it is questionable just how well this predictive                                                                                                                          consequat.                 tincidunt tution
                                                                                                                                                                                                      ullam corper
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                                                                                                                                                                                                                                  volutpat.
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                                                                                                                                                                                                                                                                         sed magna aliguam erat euismod tincidunt ut lacreet
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                                                                                                                                                                                                                                                                     suscipit lobortis nisi ut nostrud ex ea commodo consequat.
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                                                                                                                                                                                                                                                                      Duis te feugi facilisi. Duis autem ex ea commodo consequat.
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                                                                                                                                                                                                                                                                     vulputate velit esse molestie consequat, vel illum dolore eu
                                                                                                                                                                                                                                                                                                                                                                             Performance

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                                                                                                                                                                                                                                                                        vulputate facilisis molestie consequat, vel et iusto odio


potential is realised. One major constraint for
                                                                                                                                                                                                         consequat.                                                   feugiat nullavelit esseat vero eros et accumsanillum dolore eu
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                                                                                                                                                                                                                                                                     dignissim qui blandit praesent luptatum zzril delenitiusto odio
                                                                                                                                                                                                                                                                      dignissim nulla facilisis at vero eros et accumsan et au gue
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                                                                                                                                                                                                                                                                         feugiat qui facilisis at vero eros et zzril delenit au odio
                                                                                                                                                                                                                                                                     duis dolore tequi blandit praesent luptatum zzril delenit au gue
                                                                                                                                                                                                                                                                        dignissim qui blandit praesent luptatum zzril delenit au gue
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                                                                                                                                                                                                                                                                         duis dolore te feugat nulla facilisi.




objective assessment has been the challenge of                                                                                                                                                                                                        360 Feedback
                                                          Assessm ent Centre Outputs
                                                          Assessm ent Centre Outputs                                                                                                                                                                                                                                              Psychometric Data
integrating and weighting the data to inform




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                                                                                                                                                                                 ut lacreet
organisational judgements and decisions.




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                                                             dolor sit am et
                                                               dolor sit am et



This is the practical issue of assessment usage and          Consectetuer
                                                              Consectetuer


                                                             adipiscing elit



the logistical difficulties organisations often face in
                                                               adipiscing elit


                                                            nonum m y nibh
                                                              nonum m y nibh




integrating assessment data with other information.               Euism od
                                                                   Euism od


                                                                 ut lacreet
                                                                   ut lacreet


There is a range of assessment activity and outputs,        dolore m agna
                                                              dolore m agna




but the data is often trapped in folders and filing
                                                                   aliguam
                                                                     aliguam




cabinets, or dispersed across a range of systems and
networks. In the absence of integrated talent
intelligence, organisations go back to the square one
of intuitive judgement.

                                                                                                                                                                                                                                                                     Disparate data or
                                                                                                                                                                                                                                                                     integrated talent
                                                                                                                                                                                                                                                                     summaries?



© AM Azure Consulting Ltd 2012                                                                                                                                                                                                                                                                                                                                                                                            14
Technology and talent intelligence
We may have moved on from the “black book”, that
listing of names maintained by the “succession chess
master to guide senior level appointments, and office
software applications have replaced folders in filing
cabinets, but organisations continue to struggle with the
technology of talent intelligence.




                                                                IMPACT ON RESOURCING DECISION MAKING
“Big” systems sold as complete solutions to “join the
dots” of talent management activity promise a suite of
integrated modules for full functionality. The reality has
been over-engineered and expensive complexity that                                                            Unsustainable        Maximising data
makes for long lead times and a short shelf life, and an                                                      reliance on the        analysis and




                                                                                                       High
end user experience that lacks responsiveness and                                                              ‘black book’        presentation to
flexibility.                                                                                                                     influence the talent
                                                                                                                                       agenda
With the recent round of consolidation in the vendor
market, genuine integrated and cost effective talent
technology will probably emerge over the next few
years, most likely from a new player. But we’re not
there yet. In the meantime, stand alone applications are
                                                                                                              Vacuum in which    Expensive software




                                                                                                        Low
more likely to provide a better solution for:
                                                                                                               nothing much      solutions which are
   speed and simplicity of data capture and outputs                                                              happens              irrelevant
   busy end users who are preparing for talent reviews
   or career conversations
   cost effective flexibility to adapt quickly to
   organisational change
                                                                                                                     Low                    High
that is critical to ensure talent intelligence drives action.
                                                                                                                      UTILISATION OF I.T.




© AM Azure Consulting Ltd 2012                                                                                                                          15
Talent Management as Career Conversations
Talent Management as Career Conversations
Talent Management as Career Conversations
Talent Management as Career Conversations
Talent Management as Career Conversations
Talent Management as Career Conversations
Talent Management as Career Conversations
Talent Management as Career Conversations
Talent Management as Career Conversations

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Talent Management as Career Conversations

  • 1. Talent management as conversations Why we need to talk about careers Instead of getting bogged down in the complexities of the technology of HR information systems or the current muddle of assessment methodology, we can deploy simple online technology to ask the right people the right questions. And if we have conversations we can do something with the answers to connect the talent management agenda to career development.
  • 2. Challenges in fighting the “war for talent” The “War For Talent” continues, and organisations still Right now our talent experience problems in: management systems measure connecting the discussion of future business HR-related impact, but many of challenges to the review of current and emerging the reasons employees stay or talent differentiating levels of current performance and go, grow or stagnate are not future contribution to target investment on key addressed. individuals going from plotting the conventional 9 grid Lisa Haneberg performance-potential matrix to put in place the practical measures that drive retention and career progression involving line managers fully in the talent management process to engage their interest and commitment to the follow through connecting talent priorities to individuals and their career development This article outlines how the complexity of talent management frameworks, practices and systems can make it difficult to have conversations. And how a rethink in our assumptions about the dynamics of success and a shift in how we manage talent intelligence makes it easier to have the kind of discussions that drive career development and build talent “from the bottom up”. © AM Azure Consulting Ltd 2012 2
  • 3. Going beyond top down talent management Career conversations between Workforce planning and succession management are of course important disciplines in risk assessment and strategic decision managers and employees are the single making. This is sensible corporate governance to identify those most important factor in building, roles that are becoming increasingly critical to the organisational motivating and developing a highly future to highlight succession coverage and exposure. skilled professional work force. As important as ever, these career But often this is talent management as an exercise in impression management to provide key stakeholder groups with an analysis conversations are becoming more of the resourcing opportunities and risks facing the organisation. difficult. No bad thing, but succession plans and talent analytics do not advance the organisational agenda to develop technical, Caela Farren professional and management capability or build organisational responsiveness and resilience. Individuals think “me and my career” not succession. A talent management strategy that fails to connect to the employee career experience will find itself lost in the abstraction of talent metrics and organograms. © AM Azure Consulting Ltd 2012 3
  • 4. The heads of the department have recently conducted a talent review exercise: Each of the heads now has the responsibility of providing face-to-face feedback with their reports. Why would any sensible Individual: Individual: So how did the talent review go? So how did the talent review go? line manager want to Head: Pretty good I Ithink…OK. Head: Pretty good think…OK. have a conversation with Individual: As we’ve discussed I Ifeel really good about the initiatives this a high performing Individual: As we’ve discussed feel really good about the initiatives this organisation is taking. I Iwant to be part of its expansion. I Ifeel organisation is taking. want to be part of its expansion. feel employee who has been I’ve really got to grips with my role and I Ithink I’m ready to I’ve really got to grips with my role and think I’m ready to move on to take on aabigger job. I’ve been looking through this evaluated as low move on to take on bigger job. I’ve been looking through this prospectus…this MBA programme looks strong… prospectus…this MBA programme looks strong… potential? Head: Head: Well we reviewed… the problem is that at this moment in time Well we reviewed… the problem is that at this moment in time you weren’t seen as being high potential… you weren’t seen as being high potential… Individual: Individual: What….but I’m performing well…you said so in our last What….but I’m performing well…you said so in our last appraisal. You know I’m keen, I’m motivated, I’m really keen to appraisal. You know I’m keen, I’m motivated, I’m really keen to learn…so why am I Inot seen as high potential? learn…so why am not seen as high potential? Head: Head: It’s quite difficult to explain. Potential well ..it’s more than how It’s quite difficult to explain. Potential well ..it’s more than how well you’re doing now..it’s…you’re not seen as ready to well you’re doing now..it’s…you’re not seen as ready to progress. progress. Individual: Individual: Why? What am I Idoing that’s wrong? What am I Inot doing? Tell Why? What am doing that’s wrong? What am not doing? Tell me. me. Head: Head: Look. This wasn’t my decision. There is aafeeling with the other Look. This wasn’t my decision. There is feeling with the other guys that you’re not…you don’t quite …you lack gravitas. guys that you’re not…you don’t quite …you lack gravitas. Individual: Individual: What does that mean? What does that mean? Head: Head: I Idon’t know…you just…can we discuss this later, I’ve got don’t know…you just…can we discuss this later, I’ve got another meeting scheduled in five minutes. another meeting scheduled in five minutes. © AM Azure Consulting Ltd 2012 4
  • 5. Talent management as a series of powerful conversations Do our frameworks of success, 1. within the Board to ensure that risks have been highlighted and assessment processes and the flow of that contingency plans are in place? This is also about the Board information about talent make it easy challenging the CEO and top team about the stewardship they are providing to identify options for internal and external succession. to have high impact conversations? 2. between the CEO and the top team to create an ongoing dialogue about the future of the business, the scenarios it faces and available talent? This conversation helps to rethink resourcing requirements in the face of different strategic challenges. It also asks tough questions about the role that each team member is personally playing in the development of the organisation's next generation of leadership. 3. between each top team member and their executives and the ongoing discussion about business priorities, capability and the importance of proactive talent management within each business area. This conversation is also played in talent reviews to break down silos and overcome any cross functional conflict that might be constraining the free flow of talent. 4. between line managers and their direct reports? This is the candid review of performance and future contribution, and the conversations that challenge under-performance, motivate the talented individual who is coasting, and provide career coaching to guide those talented individuals. © AM Azure Consulting Ltd 2012 5
  • 6. Three big questions in talent intelligence What frameworks are in place to inform the judgements and decisions we make about individuals? the factors that are key to the organisational “model of success” how the outputs of past success are integrated with the inputs of future success Who conducts the assessment, using which methods? top down, largely based on the personal judgement of the top team? line management evaluations? HR driven, drawing on additional data (e.g. assessment centres)? bottom up in which individuals complete career profiles? the process of data consolidation and integration to summarise talent intelligence the choice of technology ranging from a paper shuffle of returns, ad hoc email attachments, integrated talent management vendor solutions, or dedicated bespoke systems How is talent data used in decision making and action planning? processes for review, debrief and development planning optimising the impact of talent reviews and career conversations © AM Azure Consulting Ltd 2012 6
  • 7. What frameworks do we use? And where not to start Nine box plotting is the standard methodology of talent management, with a legacy that can be tracked back to the 1950s, a very different world to the one in which we now operate. Mapping evaluations of High Reassign current performance against a forecast of potential to take on greater responsibility in future has the virtue of simplicity and speed. But it Prepare for POTENTIAL may be a tool that is no longer able to differentiate today’s progression Med professional and management talents or tomorrow’s career Review expectations and aspirations. The basic definition “the work that one can do in future” is obvious. But it doesn’t answer: which types of work; over what time Question Low scales in future? Presumably not any and every work activity. Bad hire Consolidate mark It is a vague concept, and typically little more than a loose evaluation to indicate some kind of value to the organisation. Low Med High Attempts at precision are misguided. Spuriously scientific, the PERFORMANCE charts of potential by time scale (readiness to progress within a defined period) and level (the capacity to attain a defined organisational level) are unrealistic given the realities of human nature and development and organisational change. Defining potential is trying to “hit a moving target”. Why does the The nine-box listing of high potential managers keep changing year after year? Because strategy, structure and culture and operating requirements category system is don’t stand still. crude and clumsy The potential word doesn’t make it easy for line managers to have career development discussions. Meaningful development focuses on the individual and the specific issues they face within their current Professor Adrian Furnham, role or in realising their aspirations for progression. Overall indices that University College London provide an evaluation of “bad to good” do little to set the scene for a constructive conversation. © AM Azure Consulting Ltd 2012 7
  • 8. An alternative framework for sustainable success We need to rethink our fundamental assumptions to implement insightful models of the dynamics of sustainable success. Firstly to make sense of the proliferation of different theories and frameworks; everything from corporate values, experience, competency and expertise, to personality and emotional intelligence Secondly, to provide a blue print to improve the processes for assessment, deployment and development to make it easier for line managers to have career conversations. Our approach has been to work backwards from the questions which the top team ask of their organisation’s emerging leadership. Based on our experience of working with different top teams in succession reviews, it is clear that Boards do not systematically work through the formal competency documentation. Instead they focus on four overarching areas¹ : is this individual credible? is this individual capable? does this individual display character? is this individual proactive in career management? ¹ Rethinking Leadership Realities: the dynamics of the Four Cs © AM Azure Consulting Ltd 2012 8
  • 9. Rethinking the dynamics of success: Four Cs how credible is this individual? how credible is this individual? Credibility Credibility do they have a track record of relevant experience and outstanding do they have a track record of relevant experience and outstanding achievement? background credentials and background credentials and achievement? do they have the respect of their peers? connections to build confidence as a connections to build confidence as a do they have the respect of their peers? have they built up a reputation across the industry? potential leader potential leader have they built up a reputation across the industry? how capable is this individual? how capable is this individual? what is the breadth and depth of management competency? what is the breadth and depth of management competency? Capability Capability which technical expertise and skills can be deployed with which technical expertise and skills can be deployed with the functions, tasks and skills to be the functions, tasks and skills to be proficiency? proficiency? deployed to meet the problems of deployed to meet the problems of what kinds of business challenge will they be most and least what kinds of business challenge will they be most and least leadership and to be effective leadership and to be effective effective in tackling? effective in tackling? what indicators are there of progression to take on greater what indicators are there of progression to take on greater responsibility? responsibility? Character Character does this individual display character? does this individual display character? the values and attributes which the values and attributes which is there integrity of ethical purpose? is there integrity of ethical purpose? provide leadership purpose and provide leadership purpose and are they resilient under pressure? are they resilient under pressure? meaning for the longer-term meaning for the longer-term do they have the distinctiveness to stand out as different? do they have the distinctiveness to stand out as different? does this individual understand career realities? does this individual understand career realities? is the individual’s career motivation consistent with organisational is the individual’s career motivation consistent with organisational Career Management Career Management requirements? requirements? self management and political savvy self management and political savvy is this individual effective in self management? is this individual effective in self management? to navigate through organisational to navigate through organisational realities realities © AM Azure Consulting Ltd 2012 9
  • 10. Four Cs and career mapping The aim of a talent framework is to map out how the building blocks of effectiveness combine to identify different “career Career Risk Career Risk segments” that inform career progression options and development planning. CREDIBILITY CREDIBILITY Career Review Career Review This is to move from the index of potential, essentially “good vs. bad guys”, to think more The review of data The review of data insightfully about the range of from different from different Career Career different professional and CAPABILITY sources to sources to Specialisation CAPABILITY Specialisation management permutations, and identify key identify key identify the specific responses patterns and patterns and that will accelerate development. inform inform Career Career conclusions and conclusions and Redirection Redirection specific career specific career CAREER CAREER development development MANAGEMENT MANAGEMENT recommendations recommendations Career Focus Career Focus Career Boost Career Boost CHARACTER CHARACTER Career Jump Career Jump © AM Azure Consulting Ltd 2012 10
  • 11. Four Cs and powerful questions Powerful questions to evaluate: If we ask the right questions in the right way we may gain a better understanding of individuals, Credibility and those whose career is best advanced Track record of business achievement through in-depth technical excellence, or who Exposure to different sectors will broaden their expertise to build professional Business experience mastery, or tackle organisational challenges Organisational knowledge Peer regard and profile outside their functional background to develop Senior team visibility versatility, or those best equipped to take on positions of business leadership. Or the Capability individuals whose career interests are best Breadth and depth of technical/professional expertise served in another part of the organisation or to Management competency and versatility pursue a different career path. Exceptional talents Performance, impact and improvement Character Character in action Question marks Career Management Career aspirations and path Development commitment Professional contribution Political savvy Risks of derailment © AM Azure Consulting Ltd 2012 11
  • 12. Who conducts talent assessment? If the first challenge is to put in place a framework of Does the top management team conduct a first cut overview of the success that sees talent management through the population to identify “key individuals”. This approach has the eyes of the individual and map out different career advantage of speed and efficiency. Typically however the top team patterns, the second challenge is to implement may lack meaningful exposure to the target group and the discussion processes for assessment. What assessment relies on “corporate hearsay” and subjective opinions. methods are used, who takes responsibility for this assessment, and how is this information integrated to Or, do we ask line management to provide detailed evaluations of inform decision making and action planning? their direct reports for review with their peers in a calibration exercise? Here the virtue is one of greater access to work performance to identify indicators of talent and progression. It also reinforces line management accountability for the development of their people. This strategy to be effective of course requires maturity of managerial judgement. It also runs the risk of the “beauty parade” in which evaluations are more a reflection of parochial functional interests than broader organisational needs. Alternatively, individuals provide a self-assessment of experience, capability and motivation as part of talent information flows. At best this accesses the detail of accomplishments, technical know-how, skill, and career aspirations from those who know. At worst, this can be an exercise in impression management in which self promoting advancement out-manoeuvres genuine expertise and experience. Or do we think that talent management professionals, accessing a range of assessment options, should kick-start the talent information flow? In this scenario assessment specialists introduce psychometric testing and assessment centres to establish greater objectivity and consistency within talent intelligence. And just how useful is objective assessment? © AM Azure Consulting Ltd 2012 12
  • 13. How good is the “assessment industry” at predicting future effectiveness anyway? What difference does objective assessment make General cognitive ability continues to be the most stable and consistent to talent management practice? Here, there are two predictor of work performance (around .5) across a wide range of jobs and questions: occupations, with validity increasing with the complexity of the work task. 1. the empirical question: what predictive Assessment Centre validity has been steadily falling since the glory days power can objective assessment in of the 1970s; the latest review in 2009 suggests a validity of around .27. principle contribute to improve talent evaluations? Personality tests continue to be the focus of much controversy. Although 2. the practical question: what impact does decent measures of the Big Five claim to provide a combined validity of this predictive power in reality have on around .39, it is questionable how much predictive power is in fact achieved organisational decision making? in selection scenarios because of the complexities of impression management in self report measures. The quick answer to the first question is that objective assessment can add significant value to The initial studies claiming breakthrough findings for Emotional talent assessment, but nothing remotely of the order Intelligence validity in fact proved nothing of the sort. EQ measures seem claimed by much of the assessment industry. to add little predictive power to conventional psychometric tests. Clearly specific tools and instruments will have The interview, in large part due to the introduction of greater structure, has more or less validity in any given predictive improved its validity, potentially to the order of .3 to .4, with the indication scenario, but we can summarise the overall that interviews which focus on past behaviour provide greater predictive patterns in the evidence base of the common power than those based on responses to future situations. methodologies to identify the relative predictive power of the assessment options¹. 360° feedback data indicates promise, in particular peer evaluations of colleague effectiveness and impact, with validity of around .36. The validity coefficient, an index indicating the strength of the relationship between the assessment predictor and Situational Judgement Tests indicate a validity of around .26, but most the work outcome, on a scale from 0 (no prediction) to evidence is based on concurrent studies utilising job incumbents rather than 1.00 (perfect prediction) can also be expressed as a applicants. percentage of explained variance in effectiveness. A validity coefficient of 0.3, for example, amounts to a prediction of 9% of future effectiveness. Biodata, structured questions that capture information about past experience and achievements, have validity around the .32 mark. ¹ http://www.amazureconsulting.com/files/1/39199746/FairyTalesFactsPredictingLeadershipEffectiveness.pdf © AM Azure Consulting Ltd 2012 13
  • 14. Assessment and the integration challenge Despite the extravagant claims, there is no indication that the assessment experts have made serious inroads to improve the predictive power of assessment methods over the last 20 - 30 years. Yes, objective assessment has the potential to improve talent decision making, but its success largely resides Curriculum Vitae Curriculum Vitae APPRAISAL APPRAISAL Top Management Review Top Management Review in a short test of cognitive mental ability. And the Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diem nonummy doloreuismod tincidunt ut lacreet dolore sed Lorem ipsum nibh sit amet, consectetuer adipiscing elit, diem nonummy nibh euismod tincidunt ut lacreet dolore magna aliguam erat volutpat. 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One major constraint for consequat. feugiat nullavelit esseat vero eros et accumsanillum dolore eu vulputate facilisis molestie consequat, vel et iusto odio dignissim qui blandit praesent luptatum zzril delenitiusto odio dignissim nulla facilisis at vero eros et accumsan et au gue feugiat nullablandit praesent luptatumaccumsan et iustogue feugiat qui facilisis at vero eros et zzril delenit au odio duis dolore tequi blandit praesent luptatum zzril delenit au gue dignissim qui blandit praesent luptatum zzril delenit au gue dignissim feugat nulla facilisi. duis dolore te feugat nulla facilisi. duis dolore te feugat nulla facilisi. duis dolore te feugat nulla facilisi. objective assessment has been the challenge of 360 Feedback Assessm ent Centre Outputs Assessm ent Centre Outputs Psychometric Data integrating and weighting the data to inform nonummy nibh adipiscing elit dolor sit amet nonummy nibh corem ipsum consectetuer adipiscing elit dolor sit amet corem ipsum consectetuer ut lacreet organisational judgements and decisions. ut lacreet Lorem ipsum Lorem ipsum dolor sit am et dolor sit am et This is the practical issue of assessment usage and Consectetuer Consectetuer adipiscing elit the logistical difficulties organisations often face in adipiscing elit nonum m y nibh nonum m y nibh integrating assessment data with other information. Euism od Euism od ut lacreet ut lacreet There is a range of assessment activity and outputs, dolore m agna dolore m agna but the data is often trapped in folders and filing aliguam aliguam cabinets, or dispersed across a range of systems and networks. In the absence of integrated talent intelligence, organisations go back to the square one of intuitive judgement. Disparate data or integrated talent summaries? © AM Azure Consulting Ltd 2012 14
  • 15. Technology and talent intelligence We may have moved on from the “black book”, that listing of names maintained by the “succession chess master to guide senior level appointments, and office software applications have replaced folders in filing cabinets, but organisations continue to struggle with the technology of talent intelligence. IMPACT ON RESOURCING DECISION MAKING “Big” systems sold as complete solutions to “join the dots” of talent management activity promise a suite of integrated modules for full functionality. The reality has been over-engineered and expensive complexity that Unsustainable Maximising data makes for long lead times and a short shelf life, and an reliance on the analysis and High end user experience that lacks responsiveness and ‘black book’ presentation to flexibility. influence the talent agenda With the recent round of consolidation in the vendor market, genuine integrated and cost effective talent technology will probably emerge over the next few years, most likely from a new player. But we’re not there yet. In the meantime, stand alone applications are Vacuum in which Expensive software Low more likely to provide a better solution for: nothing much solutions which are speed and simplicity of data capture and outputs happens irrelevant busy end users who are preparing for talent reviews or career conversations cost effective flexibility to adapt quickly to organisational change Low High that is critical to ensure talent intelligence drives action. UTILISATION OF I.T. © AM Azure Consulting Ltd 2012 15