"The Talent Management Handbook", 2nd Edition - Fairleigh ...

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THE

TA L E N T MANAGEMENT

HANDBOOK SECOND EDITION C R E AT I N G A S U S TA I N A B L E C O M P E T I T I V E A D VA N TA G E BY SELECTING, DEVELOPING, AND PROMOTING THE BEST PEOPLE

Edited by Lance A. Berger Dorothy R. Berger

New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto

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Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

1 2 3 4 5 6 7 8 9 10

ISBN MHID

DOC / DOC

1 9 8 7 6 5 4 3 2 1 0

978-007-173905-4 007-173905-X

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, securities trading, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. —From a Declaration of Principles Jointly Adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations

Library of Congress Cataloging-in-Publication Data The talent management handbook : creating a sustainable competitive advantage by selecting, developing, and promoting the best people / [edited] by Lance Berger, Dorothy Berger. – 2nd ed. p. ; cm. Includes index. ISBN 978-0-07-173905-4 (alk. paper) 1. Career development. 2. Employee motivation. 3. Creative ability in business. I. Berger, Lance A. II. Berger, Dorothy R. HF5549.5.C35T35 2011 658.3'14—dc22

2010041289

McGraw-Hill books are available at special quantity discounts to use as premiums and sales promotions or for use in corporate training programs. To contact a representative, please e-mail us at [email protected].

This book is printed on acid-free paper.

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Contents Preface Contributors

Part I

Creating a Talent Management Program for Organization Excellence 1. Designing and Assembling the Building Blocks for Organization Excellence: The Talent Management Model, Lance A. Berger and Dorothy R. Berger Building Block 1: Competency Assessment 2. Formulating Competencies, Murray M. Dalziel, Ph.D. 3. Fundamentals of Competency Modeling, Kim E. Ruyle and J. Evelyn Orr 4. Creating the Workforce of the Future: Projecting and Utilizing New Competencies, Ron Garonzik, Ph.D., and John B. Larrere Building Block 2: Performance Appraisals 5. Designing a Performance Appraisal for Driving Organization Success, Dick Grote 6. Performance Measurement for All Employees, Mark Graham Brown 7. Conducting Performance Reviews that Improve the Quality of Your Talent Base, David Insler and Angelita Becom 8. Appraising Executive Talent, James F. Reda 9. Selecting the Right Performance Appraisal, Martin G. Wolf, Ph.D. 10. Improving Performance through the Employee Value Exchange, Jim Kochanski and JP Elliott Building Block 3: Succession and Career Planning 11. Integrating Succession Planning and Career Planning, William J. Rothwell, Ph.D. 12. Determining Every Employee’s Potential for Growth, Murray M. Dalziel, Ph.D. 13. Designing a Succession Planning Program, Doris Sims

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45 55 65 76 88 109

119 131 140

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Contents 14. Practical Discussions for Sweet Success, Kevin D. Wilde 15. Career Development: Encompassing All Employees, Beverly Kaye, Ph.D., Joyce Cohen, and Beverly Crowell 16. CEO Succession Planning, Marshall Goldsmith 17. Ensuring CEO Succession Agility in the Boardroom, Dennis Carey, Marc Feigen, and Kevin Cashman

Part II

Formulating Coaching, Training, and Development Approaches that Drive Talent Management Processes 18. Training and Development: A New Context for Learning, Dale E. Kunneman, Francesco Turchetti, Sharon L. Cresswell, Catherine M. Sleezer 19. Developing Your Workforce: Measurement Makes a Difference, Jack J. Phillips, Ph.D., and Lisa Edwards 20. Developing Top Talent: Guiding Principles, Methodology, and Practices Considerations, Karol M. Wasylyshyn, Psy.D. 21. Coaching for Sustained, Desired Change: Building Relationships and Talent, Richard E. Boyatzis, Ph.D., Melvin L. Smith, Ph.D., and Ellen Van Oosten 22. Developing Leadership Competencies through 360-Degree Feedback and Coaching, John W. Fleenor, Sylvester Taylor, and Craig Chappelow 23. Using 360-Degree Feedback for Talent Development, Michael Haid 24. Coaching Leaders for Corporate Social Responsibility, Deb Jacobs and Mayra Hernandez 25. Integrating Coaching, Training, and Development with Talent Management, Kaye Thorne

Part III

Making Compensation an Integral Part of Your Talent Management Program 26. Driving Success through Differentiation: Compensation and Talent Management, Andrew S. Rosen and Jodi L. Starkman 27. Rewarding Your Top Talent, Mel Stark and Mark Royal 28. Using Long-Term Incentives to Retain Top Talent, Paul Conley and Dan Kadrlik 29. Fostering Employee Involvement and Engagement through Compensation and Benefits, Gerald E. Ledford, Jr., Ph.D.

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Contents

Part IV

Using Talent Management Processes to Drive Cultures of Excellence Theme 1: Using Talent Management Techniques to Drive Culture 30. Establishing a Talent Management Culture, David C. Forman 31. Linking Culture and Talent Management, Andy Pellant 32. Creating a Culture of Success: What Every CEO Needs to Know, Owen Sullivan 33. Using Onboarding as a Talent Management Tool, David Lee 34. Employee Engagement and Talent Management, Deborah Schroeder-Saulnier Theme 2: Targeting Cultures that Create Competitive Advantage for Your Organization 35. Crafting a Culture of Creativity and Innovation, Fredericka K. Reisman, Ph.D., and Theodore A. Hartz, MBA 36. Building a Sustainability Culture through Employee Engagement, Max Caldwell and Denise Fairhurst 37. Unleashing Talent in Service of a Sustainable Future, Jeana Wirtenberg, Ph.D. 38. The Role of Ethics in Talent Management: How Organizations Ought to Behave, Stephen F. Hallam, Ph.D., and Teresa Alberte Hallam, Ph.D. 39. Collaboration: Getting the Most Out of Informal Connections, Robert J. Thomas and Yaarit Silverstone Theme 3: Making Diversity Part of Your Competitive Advantage 40. Creating Competitive Advantage through Cultural Dexterity, Reginald F. Butler 41. Building a Reservoir of High Performance and High Potential Women, Molly Dickinson Shepard and Nila G. Betof, Ph.D.

Part V

Using Talent Analysis and Planning Techniques to Enhance Your Talent Management Program 42. Multiplying Talent for High Performance, David Smith and Elizabeth Craig 43. Workforce Planning: Connecting Business Strategy to Talent Strategy, Ed Newman 44. Using Workforce Planning as Part of a Talent Management Program, Robert Conlon, E. Michael Norman, and Aaron Sorensen, Ph.D. 45. New Tools for Talent Management: The Age of Analytics, Haig R. Nalbantian and Jason Jeffay 46. The Role of Line Managers in Talent Planning, Rick Lash, Ph.D. and Tom McMullen

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303 305 315 321 331 340

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421 423 431 440 452 463

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Contents 47. Making Recruitment Part of Your Talent Management Process, Randy Jayne 48. Making Outplacement Part of Your Talent Strategy, Tony Santora and Melvin Scales 49. Developing Talent Management Information Systems, Craig M. Berger 50. Implementing an Automated Talent Management System, Guy Gauvin

Part VI

Innovative Thinking that Can Shape Your Organization’s Approach to Talent Management 51. Rethinking Talent Management Using a People Equity Framework, William A. Schiemann 52. Marshalling Talent: A Collaborative Approach to Talent Management, Dave Ulrich, Ph.D., and Michael Ulrich 53. The Global State of Talent Management, David C. Forman 54. A Model for Talent Manager Excellence, Marc Effron and Jim Shanley 55. Talent Management Leadership in Government, Allen Zeman, Ph.D., Anne Kelly, and Allan Schweyer Index

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Preface

T

HE TALENT MANAGEMENT HANDBOOK HELPS ORGANIZATIONS DRIVE AND SUSTAIN

excellence by proactively using talent management processes to create a culture for success. Based on our research, consulting assignments, and the input of this book’s preeminent contributors, we conclude that the core talent management framework required for creating a culture for success consists of three elements. These are: • A talent management creed composed of a widely publicized set of core principles, values, and mutual expectations that mutually guides the behavior of an organization and its people. Collectively, the stated principles depict the type of culture an organization strives to create to achieve its unique portrait for success. The principles of the creed are embedded into both its talent management strategy and in its talent management system through incorporating its doctrines into selection criteria, competency definitions, performance criteria, and internal selection and development processes, and all other human resources policies and programs. • A talent strategy makes explicit the types of people in whom the organization will invest. The highest investments are rooted in the organization’s talent creed and each person’s potential for contributing to organizational success now and in the future. • A talent management system consists of a set of procedures, systems, and processes that translate an organization’s talent creed and strategy into a diagnostic and implementation program for investing in the people who exemplify the culture that will achieve organization excellence. This book is organized into six parts. The chapters are arranged to provide readers with a logical path to creating the talent management framework described above. Part I establishes the talent management framework. It shows how the different elements of a creed, talent strategy, and the building blocks of a talent management system are integrated into a unified approach that creates and sustains organizational excellence. The building blocks represent assessment tools rooted in the organization’s creed that include competencies, performance appraisal, potential forecast, and succession and career planning. The building blocks enable the organization to classify its

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Preface employees based on actual and potential contribution to organizational success and to suggest the types of investment needed to enhance individual contribution. Part II describes the types of investments an organization must make to assure that its human resources can perform at the highest competitive levels now and in the future based on the assessment of its people. This section covers the use of training, development, coaching, mentorship, and leadership within a talent management plan. Together Parts I and II provide critical input to helping an organization attract, select, retain, and engage its people. Part III presents approaches that are used to allocate financial rewards to employees based on their actual and potential contribution to employee success. Part IV links talent management, culture, and business excellence. It describes how organization philosophies, beliefs, and values establish the parameters that govern the selection, development, and advancement of the people who shape the culture for success that drives business excellence. They include elements such as: ethics, sustainability, diversity, engagement, innovation, and creativity. Part V covers a diverse collection of critical topics that include defining the link between business planning and talent management, workforce analysis, and recruitment, outplacement, and information systems that complement other talent management processes. Part VI encourages the reader to be imaginative in approaching the unique talent management requirements of their organization. It includes ways to use a “people equity framework” to rethink talent management, use novel “collaborative approaches to marshall or marshall talent,” consider the “global state of talent management,” “deploy a special model for talent manager excellence,” and use talent management “leadership” to drive success in the government.

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Contributors Angelita Becom, Senior Consultant, Sibson Consulting, Raleigh, North Carolina (Chapter 7) Craig M. Berger, Director of Education, Society for Environmental and Graphic Design, Washington, DC (Chapter 49) Dorothy R. Berger, Partner, Lance A. Berger & Associates, Ltd., Bryn Mawr, Pennsylvania (Chapter 1) Lance A. Berger, Managing Partner, Lance A. Berger & Associates, Ltd., Bryn Mawr, Pennsylvania (Chapter 1) Nila G. Betof, Ph.D., Chief Operating Officer, The Leader’s Edge, Bala Cynwyd, Pennsylvania (Chapter 41) Richard E. Boyatzis, Ph.D., Professor in the Departments of Organizational Behavior, Psychology, and Cognitive Science, Case Western Reserve University, Cleveland, Ohio (Chapter 21) Mark Graham Brown, President, Mark Graham Brown & Associates, Manhattan Beach, California (Chapter 6) Reginald F. Butler, Cultural Transformation Services Managing Director, PricewaterhouseCoopers LLP, Tampa, Florida (Chapter 40) Max Caldwell, Managing Director, Towers Watson, New York, New York (Chapter 36) Dennis Carey, Vice Chairman, Korn/Ferry International, Scottsdale, Arizona (Chapter 17) Kevin Cashman, Senior Partner, Korn/Ferry Leadership and Talent Consulting, Minneapolis, Minnesota (Chapter 17) Craig Chappelow, Global Portfolio Manager, Assessments, Center for Creative Leadership, Greensboro, North Carolina (Chapter 22) Joyce Cohen, Senior Consultant, Career Systems International, Sherman Oaks, California (Chapter 15)

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Contributors Paul Conley, Consultant, Towers Watson, Minneapolis, Minnesota (Chapter 28) Robert Conlon, Senior Vice President, Sibson Consulting, Chicago, Illinois (Chapter 44) Elizabeth Craig, Research Fellow, Accenture, Boston, Massachusetts (Chapter 42) Sharon L. Cresswell, Talent Management: Competencies and Curriculums, Baker Hughes Corporate, Houston, Texas (Chapter 18) Beverly Crowell, Senior Consultant, Career Systems International, Sherman Oaks, California (Chapter 15) Murray M. Dalziel, Ph.D., Professor of Management and Director, University of Liverpool Management School, Liverpool, England (Chapters 2 and 12) Lisa Edwards, Senior Director for Talent Management, Corbis, Seattle, Washington (Chapter 19) Marc Effron, President, The Talent Strategy Group, New York, New York (Chapter 54) JP Elliott, Senior Consultant, Sibson Consulting, Los Angeles, California (Chapter 10) Denise Fairhurst, Senior Consultant, Towers Watson, New York, New York (Chapter 36) Marc Feigen, Founder, Feigen & Company, New York, New York (Chapter 17) John W. Fleenor, Research Director, Center for Creative Leadership, Greensboro, North Carolina (Chapter 22) David C. Forman, Chief Learning Officer, Human Capital Institute, Washington, DC (Chapters 30 and 53) Ron Garonzik, Ph.D., Vice President, Hay Group, Boston, Massachusetts (Chapter 4) Guy Gauvin, Executive Vice President of Global Services, Taleo, Dublin, California (Chapter 50) Marshall Goldsmith, Executive Coach, Leadership Development and Behavioral Change, San Diego, California (Chapter 16) Dick Grote, President, Grote Consulting Corporation, Frisco, Texas (Chapter 5) Michael Haid, Senior Vice President, Global Solutions, Right Management, Philadelphia, Pennsylvania (Chapter 23) Stephen F. Hallam, Ph.D., Professor of Management, University of Akron, Akron, Ohio (Chapter 38) Teresa Alberte Hallam, Ph.D., Senior Lecturer, University of Akron, Akron, Ohio (Chapter 38)

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Contributors Theodore A. Hartz, MBA, Executive Director of Customized Learning Solutions Drexel University Goodwin College of Professional Studies, Co-Director Drexel/Torrance Center for Creativity and Innovation, Drexel University, Philadelphia, Pennsylvania (Chapter 35) Mayra Hernandez, CEO, Impactomb, New York, New York (Chapter 24) David Insler, Senior Vice President, Sibson Consulting, Los Angeles, California (Chapter 7) Deb Jacobs, Partner, Axiom Consulting Partners, New York, New York (Chapter 24) Randy Jayne, Ph.D., Managing Partner, Heidrick & Struggles, Global Aerospace, Defense, and Aviation Practice, McLean, Virginia (Chapter 47) Jason Jeffay, Partner and Global Talent Management Leader, Human Capital business, Mercer, Atlanta, Georgia (Chapter 45) Dan Kadrlik, Stock Plan Consultant, Executive Pay and Benefits, Target Corporation, Minneapolis, Minnesota (Chapter 28) Beverly Kaye, Ph.D., Founder and CEO, Career Systems International, Sherman Oaks, California (Chapter 15) Anne Kelly, Principal, Center for Human Capital Innovation (CHCI), Washington, DC (Chapter 55) Jim Kochanski, Senior Vice President, Sibson Consulting, Raleigh, North Carolina (Chapter 10) Dale E. Kunneman, Vice President Human Resources Global Products, Baker Hughes Corporate, Houston, Texas (Chapter 18) John B. Larrere, National Practice Leader, Leadership and Talent, Hay Group, Philadelphia, Pennsylvania (Chapter 4) Rick Lash, Ph.D., Canadian Leadership and Talent Practice Leader, Hay Group, Toronto, Canada (Chapter 46) Gerald E. Ledford, Jr., Ph.D., President, Ledford Consulting Network, LLC, Redondo Beach, California (Chapter 29) David Lee, Principal, HumanNature@Work, Bar Mills, Maine (Chapter 33) Tom McMullen, North American Reward Practice Leader, Hay Group, Chicago, Illinois (Chapter 46) Haig R. Nalbantian, Senior Partner and Director of Global Research and Commercialization, Human Capital business, Mercer, New York, New York (Chapter 45)

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Ed Newman, Founder, The Newman Group, and Leader, Futurestep, US, Los Angeles, California (Chapter 43) E. Michael Norman, Senior Vice President, Sibson Consulting, Los Angeles, California (Chapter 44) J. Evelyn Orr, Intellectual Property Development Consultant, Korn/Ferry Leadership and Talent Consulting, Minneapolis, Minnesota (Chapter 3) Andy Pellant, Managing Partner, Emergentedge, Hertford, England (Chapter 31) Jack J. Phillips, Ph.D., Chairman, ROI Institute, Inc., Birmingham, Alabama (Chapter 19) James F. Reda, Founder and Managing Director, James F. Reda & Associates, LLC, New York, New York (Chapter 8) Fredericka K. Reisman, Ph.D., Professor, Director Drexel/Torrance Center for Creativity and Innovation, Drexel University, Philadelphia, Pennsylvania (Chapter 35) Andrew S. Rosen, Executive Vice President, ORC Worldwide, New York, New York (Chapter 26) William J. Rothwell, Ph.D., SPHR, Professor of Workforce Education and Development, Department of Learning and Performance Systems, College of Education, The Pennsylvania State University, University Park, Pennsylvania (Chapter 11)

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Contributors Molly Dickinson Shepard, Chief Executive Officer, The Leader’s Edge, Bala Cynwyd, Pennsylvania (Chapter 41) Yaarit Silverstone, Talent & Organization Performance Managing Director, Accenture, Atlanta, Georgia (Chapter 39) Doris Sims, SPHR, Founder and President, Succession Builders LLC, Flower Mound, Texas (Chapter 13) Catherine M. Sleezer, Competencies and Curriculum Supply Chain, Baker Hughes Corporate, Tulsa, Oklahoma (Chapter 18) David Smith, Talent & Organization Performance Managing Director, Accenture, Hartford, Connecticut (Chapter 42) Melvin L. Smith, Ph.D., Professor in the Department of Organizational Behavior, Case Western Reserve University, Cleveland, Ohio (Chapter 21) Aaron Sorensen, Ph.D., Senior Consultant, Sibson Consulting, Chicago, Illinois (Chapter 44) Mel Stark, Vice President, Hay Group, Jersey City, New Jersey (Chapter 27) Jodi L. Starkman, Executive Vice President, ORC Worldwide, New York, New York (Chapter 26) Owen Sullivan, Chief Executive Officer, Right Management, Philadelphia, Pennsylvania (Chapter 32) Sylvester Taylor, Director, Assessments, Tools, and Publications, Center for Creative Leadership, Greensboro, North Carolina (Chapter 22) Robert J. Thomas, Institute for High Performance Executive Director, Accenture, Boston, Massachusetts (Chapter 39) Kaye Thorne, Founder and Managing Partner, Talent Perspectives, Dorset, England (Chapter 25) Francesco Turchetti, Director Talent Management, Baker Hughes Corporate, Houston, Texas (Chapter 18) Dave Ulrich, Ph.D., Professor, Ross School of Business, University of Michigan, Ann Arbor, Michigan, and Partner, The RBL Group, Provo, Utah (Chapter 52) Michael Ulrich, Research Associate, The RBL Group, Provo, Utah (Chapter 52) Ellen Van Oosten, Department of Organizational Behavior, Weatherhead School of Management, Case Western Reserve University, Cleveland, Ohio (Chapter 21) Karol M. Wasylyshyn, Psy.D., President, Leadership Development, Philadelphia, Pennsylvania (Chapter 20)

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Contributors Kevin D. Wilde, Vice President, Organization Effectiveness and Chief Learning Officer, General Mills, Minneapolis, Minnesota (Chapter 14) Jeana Wirtenberg, Ph.D., Director, External Relations and Services, Institute for Sustainable Enterprise, Fairleigh Dickinson University, Teaneck, New Jersey (Chapter 37) Martin G. Wolf, Ph.D., President, Management Advisory Services, Jalisco, Mexico (Chapter 9) Allen Zeman, Ph.D., President, Center for Human Capital Innovation (CHCI), Washington, DC (Chapter 55)