Talent Strategies

Alice Kwan
Michael Kauer

Learning Objectives for Today

Upon completion of this course, you should be able to:
Understand the global workforce trends and why having a talent
strategy is important
Understand Deloitte's direction and how we are planning to go
to market with this service offering
Understand Deloitte's point of view on Talent Strategies
Understand our OPP approach to developing a talent strategy
Apply the tools to develop a talent strategy
Identify Talent Strategies opportunities at clients
Know where to go to get additional information

Table of Contents

Introduction
Why this is Important
Deloittes Direction What the Firm is Doing about It
Human Capitals Approach
Deloittes Talent Management POV
o
o

Framework
Approach

Intro to the Exercise

Contacts

Talent Strategies

Introduction

Question

How many of you have participated in the design or

implementation of a Talent Management initiative?

Question

What is Talent Management?

What is a Talent Strategy?

What is Talent Strategies?

Definitions
Talent Management is the integrated set of processes,
programs, and technologies designed to Develop, Deploy, and
Connect critical workforce segments and critical skill sets to
drive business priorities.
A Talent Strategy is the output of the work we do in Talent
Management.

Talent Strategies is one of OPPs service offerings that will

enable clients to have the talent required to deliver the
business strategy.

Question

What are Critical Workforce Segments?

Definition
Critical workforce segments are the internal groups that
drive the organization's success (typically defined as top
or bottom line impact)
o

That is, groups that are driving a disproportionate share of key

business outcomes

The critical talent of an organization generally represents

a distinct minority of the total payroll

Talent Strategies

Why This is Important

Drivers of the need for Talent Strategies

Quality leadership is a major determinant of long-term success
o

Aging executive population coupled with rapid consolidation that often eliminates
traditional preparatory positions

Workforce composition is changing

o

An aging and increasingly diverse workforce puts more pressure on organizations

to recruit young talent and find new ways to source diverse employee populations

Employee loyalty and tenure is decreasing

o
o

Management turnover is expected to exceed 20%

In traditional firms, over 40% of managers are eligible to retire soon

Business challenges and the skills required are changing

More than 80% of US firms say they face a shortage of qualified machinists, craft
workers, and technicians.
o NASA projects that 2 million Science and Engineering (S&E) workers will retire
between 1998 and 2008 only 5% of the college students earns an S&E degree
o

A small percentage of the workforce make a disproportionate contribution to

the bottom line

Talent Strategies

Deloittes Direction

The Firm and OPP are Working Closely to Deliver

the Talent Strategies Hot Topic
Pieces of the Talent Strategies Rollout Plan
Client Validation
Practitioner
Training

Global Support
Materials

Internal
Rollout

Talent
Management PRD
Team

Talent Strategies
POV and Service
Offering

Industry
POVs

External Rollout

O&PP Adoption

Its 2008: Do you Know Where your Talent Is?

Overview
Five-part series by Deloitte Research offers fresh thinking on talent
management
Two big catalysts:
o
o

Looming demographic shifts

Need to achieve higher returns on labor / knowledge work (typically firms largest
investment)

Key objectives
o
o
o
o
o

Present differentiated perspective

Heighten CxO awareness of demographic trends and implications
Challenge conventional thinking / typical response to tight labor markets
Present differentiated perspective
Generate interest in (an evolving) comprehensive client service offering

Target Audience
External: CEO, CFO + Sr. HR Executive + other C-Suite
Internal: H Cap, S&O, cross-industry, HR, cross-regions
US: Jeff Summer, Bill Chafetz, Jeff Schwartz
EMEA: Brett Walsh, Jrg Schiele
A Pac: Dick Kleinert
Global: Ainar Aijala, Jim Wall
o Global markets: Germany, Japan, Italy, Spain, UK, US, Canada, Switzerland,
Austria, Netherlands, Australia, S Africa, China
o
o

Its 2008: Do you Know Where your Talent Is?

The Series Five Briefings
Why Acquisition and Retention Strategies Dont Work (1Q 05)
o
o

Why do current demographic trends require a fundamentally different approach to talent management?
This piece serves as a foundation for rest of the series

Deploying Talent Across the Global Enterprise (2-3Q 05)

o
o

Organizations increasingly need an enterprise-wide perspective of their talent needs and capabilities (current and
projected)
How do you build enterprise-wide talent models to achieve market flexibility? What is the role of offshoring?

Developing the Future Workforce (2-3Q 05)

o
o

Current demographic shifts, coupled with the speed and complexity of business, suggest that organizations must ramp
up their development capabilities.
How do orgs create this capacity? How does effective development occur?

Connecting the Global Workforce (3-4Q 05)

o
o

Knowledge workers are fast becoming intertwined in complex networks of global organizations, alliances, partnerships,
where virtual relationships far outnumber face-to-face.
What must leaders know about the nature of these networks and their interdependencies? What tools and approaches
can they apply to understand and bolster the networks through which work gets done?

Building Global Leadership Across the Talent Enterprise (3-4Q 05)

o

What leadership capabilities are required to make all this happen?

Its 2008: Do you Know Where your Talent Is?

Key Messages

Talent markets will become tighter

Traditional response is to focus on
acquisition and retention
This is an inappropriate response
o Costly
o Focus is on metrics or outcomes
o Command and control mentality
o Doesnt target drivers of employee
commitment / engagement
Instead, need to build strategies around
things that matter to critical segments:
o Development or growth
o Deployment on jobs and projects that
engage them
o Connection to others (networks and
quality of interactions)

Its 2008: Do you Know Where your Talent Is?

Rollout
Officially launch to the media in January 2005
We will be providing a range of supporting materials such as
sample press releases, sample client letters, PowerPoint
presentations, and media FAQs
o These materials will be posted on Marketplace and Deloitte
Resources as they become available
o

The Talent 2008 paper is now available on:

Marketplace
(https://marketplace.deloitte.com)
o Deloitte Resources
(https://www.deloitteresources.com/pgContent.aspx?cid=44339&si
d=2935)
o

Talent Strategies

Human Capital
Approach

Human Capital Approach to the Opportunity

Human Capital recognizes the strategic business implications of the
workforce trends and has made Talent Strategies one of three Hot
Service for O&PP
Resources and investment is being committed to develop compelling
thoughtware, tools, and training
Human Capital has decided to focus Talent Strategies in six
industries
Partnering with S&O and other service areas to develop industry
segment specific POVs
Partners/Directors owning creation of POVs
Working with industry leaders to get buy-in and push out to GSR/SR
teams

Industry Specific Points of Views

National O&PP will focus on creating industry-specific
POVs in industry segments where we have significant
client relationships:
o
o
o

o
o
o

HealthCare Life Science

Life Sciences (Alice Kwan / Shoma Chatterjee)
Energy
Oil & Gas (Jim Sowers / Sarah Woody)
Public Sector
Federal (Tim Garmager / Kirk White)
Manufacturing
Process Manufacturing (Tim Short)
Financial Services
Insurance (Mike Evangelides / Andy Leokopoulos)
Consumer Business
Consumer Products (Bill Chafetz / Alan Schnur)

Talent Strategies

Deloittes POV

Our Point-of-View
The Talent Game is Changing
Supply-demand: The retirement of Baby Boomers and
a looming skill gap will create a supply-demand
situation unlike any in history
Rise of global talent markets
The 20th century saw the rise of customer and financial
markets; talent will be the scarce resource as we enter the 21st
century
o Firms will have to source talent needs across global market as
local pools of critical talent (e.g., scientists, engineers, and
nurses) dwindle
o

Nature of work: As knowledge work prevails, firms will

have to find new ways of achieving higher returns on
their largest investment
Shifting expectations: Recent statistics suggest that
fully half of the workforce is disengaged

Our Point-of-View
Traditional Talent Management Process
The Traditional Talent Management Process
Acquire

Deploy

Develop

Retain

Traditional approaches:
o
o
o
o
o

Do not allow individuals or organizations the flexibility they need to

grow
Are costly (firms spend 50 times more on recruiting than training)
Focus on metrics and outcomes, rather than what really matters to
talent
Do not get to the heart of where value is created
Often are divorced from broader business aims, such as strategic
goals and firm branding

Our Point-of-View
Traditional Approaches will not Suffice
In the 1990s, companies waged the war for talent
by offering rich compensation packages and hot
skills bonuses
o
o
o
o

Such tactics are easily matched by competitors

Monetary rewards do not sustain interest
A players and stars are often first to leave
Attention and resource is on recruiting, not engaging
employees

Our Point-of-View
We need a Shift in Mindset
Need to build strategies around things that matter to
critical talent:
Their development or growth (recognizing that training is a small
part)
o Their deployment onto jobs or projects that engage them
(creating the roles and conditions that tap their greatest potential)
o Their connection to key others (focusing on the networks and
quality of interactions that they need to succeed)
o

By focusing on the development, deployment, and

connection, the attraction and retention of critical talent
largely take care of themselves

Develop-Deploy-Connect Cycle
Develop means helping
employees build the
capabilities they need to
achieve personal and
business goals.

Develop
Deploy means providing
employees with the
experiences they need to
perform to the full extent of
their abilities.

Capability

Commitment

Performance

Deplo
y

Connect
Alignment
Connect focuses on
how individuals
interact and perform
together.

Enabled by Human
Capital Programs

What Employees Expect from Companies

Source: HR Executive Review: Implementing the New Employment Compact (New York: Conference Board, 1997)

Improving Talent Strategies

Rather than focus on acquiring and retaining talent,
talent savvy organizations support their key people on
the issues they care about most:
o
o
o
o

Doing work that engages them

Learning how to do it even better
Encountering fresh challenges
Interacting with people in positive ways

The Talent Strategies service offering to helps

organizations identify, develop, deploy, and connect their
critical talent

Talent Strategies

Framework

Framework
Our framework focuses on people implications as a critical element of
the business strategy

Business
Priorities

Critical Workforce
Trends

Critical
Workforce
Segments

Develop

Recalibrate Human
Capital Programs
o

Capability

Commitment

o
Manage
Performance

o
Alignment

Deploy

Connect

o
o

Identify/Rationalize/Validate
Enabled by Human
Capital Programs

Integrated Talent
Management Strategy

Performance
Management
Rewards &
Recognition
Workforce
Movement
Knowledge
Retention
Organizational
Learning

Mapping Human Capital Programs to DDC

Develop, Deploy, and Connect: Linkages to Human Capital
Programs
Human Capital Programs

Deploy

Devlp

Devlp

Conct

Devlp

Talent Strategies

Approach

Step 1: Identify Business Priorities, Identify Critical

Workforce Trends and Segments

Understand the organizations business priorities in order to identify the people

implications that will directly impact business objectives
Identify those segments of the workforce that disproportionately contribute to the
success of an organization
Identify industry specific workforce trends that have a significant impact on critical
workforce segments

Step 2: Executive Diagnostic Tool

Each dimension covered in
the diagnostic includes a
formal definition to anchor
and guide the questions

One simple tool to begin a

conversation about Talent
Management, based on the work of
Deloitte Research

Identifies sample materials to

request related to each section of
the diagnostic

Diagnostic questions probe

key com-ponents of effective
talent management

Stretch assignments
and job rotations

Mentoring/Coaching

Networks

Training

Embedded in the questions are

queries as to effectiveness of Talent
Management dimensions and their
contribution to the organizations
growth and innovation

A consistent 3 point rating

scale allows for the
evaluation of each area
within a given dimension
and informs the SWOT
analysis

Diagnostic Anchors
o

o
o
o

Obtain qualitative data and

analyze in a quantitative
manner
Consistent rating scale
across dimensions
Consistent areas of focus
Diagnostic will inform the
development of the
prioritization roadmap

Rating Scale

Steps 3 5: Informing the Roadmap

Step 4: The Human Capital
Program Diagnostic Tool is used to
analyze current HC programs with
focus on Critical Workforce
Segments

Step 3: The Diagnostic

Summary categorizes the
results into 4 buckets based
on industry trends:
Strengths
Weaknesses
Opportunities
Threats

Capability

Step 5: The Talent

Management Prioritization
Roadmap provides a
detailed outline of actions
and business case for the
organization to enhance and
integrate HC programs over
a defined time period

Commitment
Alignment

Integrated Talent
Management Strategy

We then translate the results

into three key out-comes of
develop, deploy, and connect
that directly impact business
execution

Diagnostic Dashboard Summary

Strengths

Knowledge management practices are

tightly linked with the transition of
colleagues
Workforce policies have been
documented and communicated across
business units

Weaknesses

Threats

Opportunities

Integration across recruitment functions

has the opportunity to yield higher
candidate acceptance ratesleveraging
scale
Communication efforts can better link
rewards and recognition to the
performance management process, they
are consistent just not formally
recognized as integrated

Lack of a formal, consistent transition

process
Performance management is not
evaluated on a regular basis and does
not focus on the development of the
next generation of leaders

Leadership development is not

integrated with performance
management and rewards and
recognition, significant source of
turnover
Within Workforce Movements, flexible
work arrangements are managed on a
exception basis without any consistency

Diagnostic Dashboard Summary

There are numerous ways in which the data can be summarized in the
Diagnostic Dashboard, such as to provide a view by:
o Critical Workforce Segment
o Business Unit
o Region
Program
Objectives

Performance
Management
Rewards &
Recognition
Workforce
Movement
Knowledge
Retention
Organizational
Learning

Program
Details

Cross Linkages
and Integration

Results and
Measures

Infrastructure

Overall

Prioritization Roadmap Sample

Timing
1-3 months
Higher

Activity 1
Activity 2
Activity 3

6 to 12 months

12 to 24 months

Develop linkages to
performance
management
processes

Develop consistent
workforce transition
process

Prioritization

3 to 6 months

Extract information
for succession
planning purposes

Implementation of new,
integrated performance
management system
Activity 1
Activity 2
Activity 3

Activity 1
Activity 2
Activity 3

Activity 1
Activity 2
Activity 3

Develop succession
management metrics

Activity 1
Activity 2
Activity 3

Implementation of
succession
management
system

Lower

Activity 1
Activity 2
Activity 3

Talent Strategies

Exercise

Talent Strategies for OPP

What to do
Review the Chafetz executive diagnostic interview summary
Considering the business issues and critical workforce segments identified
by OPP leadership, how can we implement the Develop-Deploy-Connect
components of a talent management strategy in our practice?
Work with your group to assess the effectiveness of our human capital
programs and to identify opportunities for improvement. Be prepared to
present to the group your observations, assessment and recommendations /
action plan in an organized fashion (e.g. SWOT Analysis, etc.)

When to do it
Work on the issue: 45 minutes
Report out: 45 minutes

Talent Strategies

Contacts

OPP U.S. Contacts

Bill Chafetz:
wichafetz@deloitte.com
+1 (312) 946 3130

Alice Kwan:
akwan@deloitte.com
+1 (212) 618 4504
Tina Witney:
twitney@deloitte.com
+1 (212) 618 4677

Ken Kunkleman:
kkunkleman@deloitte.com
+1 (614) 228 4270
Michael Boedewig:
mboedewig@deloitte.com
+1 (215) 246 2587

Other O&PP practitioners with significant Talent Strategies

involvement: Adrienne Bigley, Jennifer Hand, Pete Harteveld, Michael
Kauer, Audrey Mes, Simon Porter, Anne Vlach

Member of
Deloitte Touche Tohmatsu