Talent Management What if your people with get up and go, get up and go

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Talent Management What if your people with get
up and go, get up and go?
CIPFA Scotland 2008 Owen Rees
13th March 2008
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About Zurich Municipal Risk Management

• Part of Zurich Financial Services Group - a
  global 100 company
• Manage the full range of public sector risk
  management issues through working tools and
  transfer of skills
• Leading the way on understanding public sector
  risks
• Innovative solutions to your key business risks

change management
business continuity
management of risk and opportunity
project and partnership management
talent management
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What are we talking about today?

• Not having the right people in the right place
  at the right time to do the right job

• . is one of the most significant business
  risks to appear on most organisations business
  risk registers.

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An issue for you?

• Does your organisation have an aging workforce?
• Do you find it difficult to recruit?
• And if you can do you get the right skills and
  experience?
• Is it increasingly difficult to hold onto your
  best staff?

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One of the top risks facing the public sector

• Source Perception and reality - The real risks
  for public service and charitable organisations -
  Zurich

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So why is it a risk?

• Demographic change
• McKinsey Co. used the term War for Talent to
  describe the fact that the supply of 35-44 year
  olds in the U.K will drop by 21 in the next 15
  years, whilst the economic growth forecasts will
  cause a demand for an extra 25 of talented
  executives
• Aging workforce - At present there are some 17m
  people in the UK aged 20-40 and 14m aged 45-65.
  By 2020 the projections are that the younger
  group will decrease to 16m while the older group
  will increase to 17m.
• The populations in England, Wales and Northern
  Ireland is predicted to continue rising for the
  time being. Scotland's population is expected to
  continue to decline.

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So why is it a risk?

• Particular issues in the public sector
• The UK workforce is aging. The local government
  workforce that currently accounts for 9 of the
  whole UK workforce has 34 of its staff over 50.
• We are about to experience a major retirement
  hump and with it comes the loss of skills,
  knowledge and experience. And all of the
  complications of recruitment in a diminishing
  pool of good talent.
• Over 50 of the public sector has reported
  difficulties attracting talent at both director
  and management levels.

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So why is it a risk?

• Skills shortage crisis looms LGC, 20th
  September 2007
• Fewer training places for professional
  disciplines such as town planning, building
  control, environmental health, public finance
  the backbone of many local government
  professions.
• Increased competition for staff
• A tighter talent pool of well-qualified and
  available professional officers within these
  hard to fill professions, with the local
  authority offering the highest pay and benefits
  package winning the war for such talent.
• A workforce that is more mobile (20 years ago
  most people would experience two different jobs
  by the age of 25 in 2005 the figure is now four
  jobs)

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Why is this important

• Without people the other two assets are
  vulnerable!

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How we do it at Zurich
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Talent in Zurich

• Zurich is led by a CEO who not only talks about
  the fact that people make the company, and that
  we must develop talent across the Group, but he
  takes an active interest in this, and demands to
  know what actions and strategies we have in place
  to do this.
• Talent management runs right across our
  organisation and includes EVERYONE. When senior
  executives visit different businesses and
  countries, they expect to meet a cross section of
  highly talented people and to know what the
  talent picture looks like locally and what is
  being done to strengthen it.
• This is an open approach to managing people, and
  it takes a bit of getting used to!

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Talent Strategy
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A Talent Strategy - example

• A Talent Strategy should address key leverage
  points in order to increase the quality and
  consistency of the talent base, for example
• Make the highest quality appointments
  (recruitment)
• Improve the calibre performance of existing
  talent (Personal Development Plans,learning and
  development, performance management and
  appraisals)
• Prepare high potential for the next level (talent
  book and succession planning)
• Retain the best people, skills and knowledge
  (talent book)

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How might we deliver the Strategy?
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You already do this?

• Im sure you already do a lot of these things?
• But its getting harder and resources are getting
  tighter
• How can we focus this activity and make it more
  effective?

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Talent Management
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What is Talent Management?
Scene 1 the monthly 121 two sides of the same
coin
How can I make the most of my talent and realise
my full potential?
How can I make the most of his talent and
realise our potential?
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What is the aim of Talent Management?

• Identify, understand and share current levels of
  performance and potential
• Help toward achievement of full potential by
  agreeing appropriate actions for development
• Help with career management
• Offer a more objective assessment of performance
  by using Talent Book

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Talent Book
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What is Talent Book?

• Talent Book is a tool to be used as part of
  performance and talent management which
• gives managers an understanding of talent and
  future potential
• helps managers identify action plans
• allows the business to establish (and share) the
  depth of talent and potential

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How does Talent Book work?

• Talent Book is based around a 9-box talent grid
  with two axes
• Performance (x axis)
• Does not / partially meets expectations
• Meets expectations
• Exceeds expectations
• Potential (y axis)
• No / limited growth
• Potential growth / role expansion
• Seeks new challenges

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Talent grid-risk based approach
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Talent grid
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How do we rate these well known people?

• Get into groups
• Look at your handouts
• Rate these well known people on the Talent Grid
• Any ideas on how we should deal with them!

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How it works in practise

• Two-way discussion with each member of your team
  to explain Talent Book
• Ask your team member to review their position and
  explain why they have positioned themselves where
  they have
• Explain where you have positioned them and
  discuss reasons for this
• Discuss the differences and agree a final
  position
• Review where the individual would like to be on
  Talent Book and agree a development plan to
  achieve this. Career discussion
• Moderation people panel
• Open and honest, transparent, consistency,
  develops management skills
• Forces people to manage!

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Benefits of Talent Book for the business

• Helps to identify appropriate actions for
  individual development and performance
  improvements
• Supports more dynamic and broader succession
  planning in the business
• Supports development activity in the business and
  avoids a one size fits all approach
• A more consistent approach to your understanding
  of talent and how to reward and develop it.
• Creates a pipeline of talent that has as strong
  element of home grown ,as well as externally
  recruited people.
• Helps to identify gaps and blockages in your
  talent pipeline and drives action accordingly.

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How does this differ from appraisals and personal
development plans?

• Based on an assessment of potential
• Forward looking and tailored to the individual
• The talent management plan differs from a
  Personal Development Plan because it captures
  more than an individuals development needs
• It summarises the overall talent discussion e.g.
• career aspirations
• roles they may be successors for
• when they may be ready for these roles
• support and development needed and planned

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How does this information help us?
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What do we do with the information?

• People Panel / Forum
• Succession plans
• Executive Talent review
• Talent management plan
• Career discussions
• Career track
• Talent pools
• Identify candidates for development
  opportunities, projects etc

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Succession planning
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Succession Planning

• It is vital that every organisation plans for the
  future to ensure that its needs are continuously
  met. Filling key roles is one of the most
  difficult management functions and potentially
  the most critical.

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What are the advantages of succession planning

• Strong pipeline of leaders / functional experts
• No sudden surprises - manages reduces risk
• Encourages thinking beyond immediate line or
  function
• Encourages development of successors in advance
  of them taking on that role / level
• Encourages thinking around future needs and skill
  set requirements
• Provides a career structure
• Can motivate employees
• NOT predetermining who is getting a job. It is
  developing a team of people, with the right
  potential, who will be able to compete for the
  opportunity.

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Developing a Succession Plan

• Identify
• The key roles
• An immediate successor
• A successor in 1-2 years
• A successor in 3-5 years
• An emergency replacement

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In summary

• Talent management is a risk based approach that
  helps us ensure that we have the right people in
  the right place at the right time to do the right
  job

So is part of the solution to managing one of
our biggest business risks
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Any Questions?

• Any further questions?
• If not - thank you very much!
• Owen Rees, Principal Risk Management Consultant
• Mobile [phone]
• Office 01252 387 722
• E-mail owen.rees_at_uk.zurich.com