TM - October 2007 - (Page 52) ness plan, the company had to recruit 45,000 engineers. This startling finding led the company to dramatically revamp its sourcing, internal career development and job-placement strategies. 3. Consider re-evaluating competency models. Research clearly shows competency management is the “currency” for talent processes and decisions. Without identifying the competencies that make your organization succeed, talent decisions are made on quicksand. Well-defined competencies help you set goals, appraise people, identify high-potential employees, create development plans, identify leaders and develop the leadership pipeline. Seven of the Top 22 fell into this area. We don’t recommend organizations try to build enterprisewide models in one sweeping initiative — such a project is so daunting, it’s an invitation to failure. Rather, we urge companies to start with the most important competencies required for the company’s most important jobs. 4. Performance management is key. Focus on goal setting and development, not appraisals. Effective performance management takes place every day, not once or twice a year. Although periodic appraisals are important, the biggest business impact comes from setting goals and ensuring they are correctly aligned, as well as employee development. A performance appraisal is only a single point in this wide continuum of activities. The saying is trite, but it’s true: Products don’t make a company successful — people do. How they are managed on an ongoing basis greatly influences your success. 5. For sourcing and recruiting, think sales and marketing. Over the next 15 years, virtually all industry sectors will have more jobs than qualified people. In a tight labor market, organizations must do a far better job of targeting, sourcing, recruiting and assessing potential candidates. Recruiting has moved from a purchasing function to a sales and marketing function. Moreover, there are a wide variety of new tools now available to improve the efficiency and effectiveness of talent acquisition. These include assessment systems, highly specific job boards and sourcing sites, innovative university recruiting programs and competitive intelligence approaches. In addition, career development programs are back — organizations must invest in training and development programs that can help prepare employees for key positions throughout their careers. Many training and development managers are placing a renewed emphasis on talent development programs for a wide range of positions, including engineers, sales representatives, manufacturing managers and middle managers. 6. Focus on processes first, systems second. In spite of the attention given to technology, it doesn’t add as much value as most people think. In fact, the use of HR systems doesn’t even make the Top 22 — of the 62 processes studied, use of HR systems is actually near the bottom. Let’s be clear: HR systems are important, but technology’s value is in the automation and streamlining of good programs and processes, not in creating them. To maximize business impact, focus on processes first. Don’t expect to gain value just by buying technology. When setting expectations for new systems, it’s also important to factor in the change management, training and communications required for any system implementation. For example, it takes about 2.4 years for a new performance management system to generate a positive ROI. This means that when you implement a software solution, you can expect to invest at least two years in training and change management before the associated performance management processes run better. Thus, if performance management is your top priority, first spend time on process design, competency modeling and clarification of business requirements. You’ll realize immediate business impact with this work. Then, you should automate. Clearly, we are entering a third wave for HR, a time when HR can add strategic value by focusing on high-value roles, solving business-specific talent problems and helping the organization adjust to the changing workforce. We’ve come a long way from the days of the personnel department, when HR’s primary responsibilities were payroll and benefits management. But many HR organizations are still grappling with this transition — they are not sure where to start, how to prioritize and how to evolve efficiently and effectively. You can use the Top 22 to help you “boil the ocean” and determine which processes are most critical, given your unique business challenges and requirements. Additionally, we recommend you focus on these three basic guidelines: 1. First, focus on the processes and people that matter most to the business. Find the 30 percent of your workforce that generates 70 percent of your organization’s value, and spend your time and dollars here. 2. Second, work with your business leaders to design and implement processes that drive impact, with a careful focus on change management, governance, and monitoring and maintenance. 3. Third, automate as much as you can but focus on automating processes that work — not using software to drive change. So, catch the wave. This research shows talent management can be transformational and even businesschanging. For years, we’ve talked about becoming a strategic business partner. That time has come. Josh Bersin is the principal and founder of Bersin & Associates, with more than 25 years of experience in corporate solutions, training and e-learning. He can be reached at editor@TalentMgt.com. 52 October 2007 talent management magazine www.TalentMgt.com http://www.TalentMgt.com
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