Talent Champions

CEB Corporate Leadership Council
Creating Talent Champions

(Volume II)
Best Practices for Engaging Business Leaders in
Talent Management
Please note that the CEB program names referenced in this document have changed since the time of publication.
Corporate Leadership Council
Creative Solutions Group
Senior Analysts
Tiffany Fountain
Collin Frantz
Stacia Sherman Garr
Amanda Joseph-Little
Senior Graphic Design Specialist

Alicia Peters

www.clc.executiveboard.com
Washington, D.C.
Telephone: +1-571-303-3000
Fax: +1-571-303-3100
Contributing Designers
Andrew Bradley
Erin O'Donnell
Consultant
Sari Levine
Senior Publications Editor

Kevin Mullooly
Project Manager
Adam Brinegar
Chicago
Telephone: +1-312-730-9000
Fax: +1-312-730-9100
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Christoffer Ellehuus
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San Francisco
Telephone: +1-415-293-5825
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Executive Directors
Jean Martin-Weinstein
Conrad Schmidt
London
Telephone: +44-(0)20-7632-6000
Fax: +44-(0)20-7632-6001
General Manager
Peter Freire
New Delhi
Telephone: +91-124-417-8500
Fax: +91-124-417-8501
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Telephone: +61-2-8216-0831
Fax: +61-2-8216-0701
Note to Members
Legal Caveat
This project was researched and written to fulfi ll the research requests of several members of the Corporate
Executive Board and as a result may not satisfy the information needs of all member companies. The Corporate
Executive Board encourages members who have additional questions about this topic to contact the Board
staff for further discussion. Descriptions or viewpoints contained herein regarding organizations profi led in
this report do not necessarily reflect the policies or viewpoints of those organizations.
The Corporate Leadership Council has worked to ensure the accuracy of the information it provides to its
members. This report relies upon data obtained from many sources, however, and the Corporate Leadership
Council cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the
Corporate Leadership Council is not engaged in rendering legal, accounting, or other professional services.
Its reports should not be construed as professional advice on any particular set of facts or circumstances.
Members requiring such services are advised to consult an appropriate professional. Neither the Corporate
Executive Board nor its programs are responsible for any claims or losses that may arise from a) any errors or
omissions in their reports, whether caused by the Corporate Leadership Council or its sources, or b) reliance
upon any recommendation made by the Corporate Leadership Council.
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This document has been prepared by the Corporate Executive Board for the exclusive use of its members. It
contains valuable proprietary information belonging to the Corporate Executive Board, and each member
should make it available only to those employees who require such access in order to learn from the material
provided herein and who undertake not to disclose it to third parties. In the event that you are unwilling to
assume this confidentiality obligation, please return this document and all copies in your possession promptly
to the Corporate Executive Board.
2008 Corporate Executive Board. All Rights Reserved.
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iv
The Study in Eight Conclusions

Key Conclusion
HR Implication
CLC Resources
1. Few Business Leaders Are Fully Committed to and

Effective at Talent ManagementOnly 19% of business
leadersTalent Championsare committed to and
effective at achieving superior talent outcomes.
HR must work to improve the 81% of business leaders

who fail to achieve superior talent outcomes.
p. 11
2. Business Leaders Achieve Better Outcomes When

Committed to and Effective at Talent Management
The combination of improving the commitment to
and effectiveness at talent management can result in
an up to 29% increase in talent outcomes. Focusing on
commitment or effectiveness in isolation has much less
impact, 2% and 12%, respectively.
HR needs to focus on improving effectiveness and

commitment in business leaders, not one or the other,
to drive the greatest talent outcomes possible.
p. 13
3. The Most Effective HR Strategies to Improve

Commitment and Effectiveness Are Relevance,
Consumability, and AccountabilityTo improve
business leaders commitment to and effectiveness
at talent management, organizations need to focus
on increasing the relevance, consumability, and
accountability of talent programs and activities.
HR must improve the relevance and consumability

of talent programs and increase business leader
accountability for talent outcomes to ensure impact.
p. 17
4. Improve the Relevance of Talent Activities by

Integrating with Business PlanningA line-owned,
business integrated talent plan clarifies the linkages
between business and talent activities and enables leaders
to commit to and execute on talent activities that are
consistent with and relevant to business priorities.
Create one annual opportunity for business leaders

to gain an integrated understanding of their talent
challenges anchored in the leaders business objectives.
p. 33
The Study in Eight Conclusions (Continued)

Key Conclusion
5. Improve Consumability of Talent Activities by Guiding
Business Leaders Talent Decisions and by Integrating
Solutions into Business Leaders WorkflowProviding
business leaders with explicit guidance that helps them
make better talent decisions and delivering solutions that
are responsive to individual business leaders workflow
needs matters more to improving consumability than
making talent management easier to do.
HR Implication
Provide business leaders with explicit questions to
consider to guide execution on their talent plans.
Provide clear guidance on key talent outcomes and the
activities to achieve them.
CLC Resources
p. 57
Diagnose and respond to individual leaders workflow

challenges and needs throughout the design, creation,
and delivery of talent management programs.
p. 67
Integrate talent management processes into business

processes.
p. 73
p. 77
6. Combine Soft and Hard Accountability to Improve
Talent OutcomesHard accountability (e.g., linking
incentives to talent outcomes) underperforms without
soft accountability (e.g., using peer rankings based on
talent outcomes). Combining hard and soft accountability
increases business leaders talent outcomes by an
additional 9%.
Build transparent scorekeeping processes for key talent

metrics and ensure they are well communicated among
business leaders.
7. Business Leaders Need Ownership Over the

Talent Priorities and Resources That They Are
Held Accountable ForIncreased control of talent
management objectives and resources improves business
leaders commitment to talent management activities and
talent outcomes.
Cede ownership and appropriate talent management

resource control to business leaders.
8. Hold Leaders Accountable for Behaviors and

Organization-Wide Talent ResultsHolding leaders
accountable for effective talent management behaviors as
well as organization-wide talent metrics improve longterm sustainability of organization-wide talent results.
Hold business leaders accountable for business unit

specific as well as organization-wide talent metrics.
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p.95
p. 101
p. 135
p. 101
Help business leaders set their own talent goals

and objectives.
p. 119
p. 135
Incorporate qualitative assessments into talent

reviews to foster an environment of effective talent
management behaviors in the organization.
Table of Contents
Overview of CLCs Study of Business Leader Effectiveness at Talent Management
ix
A Guide to Online Resources at www.clc.executiveboard.com
xi
Letter to the Membership
xiii
With Sincere Appreciation
xiv
Advisors to Our Work
xv
Council Essay: Improving Business Leaders Commitment to and Effectiveness at Talent Management
Chapter I: Build Relevance of Talent Management Programs

Practice #1: Integrated Talent Portfolio Review
An integrated, structured talent portfolio review that engages leaders in identifying
and addressing critical talent management risks to their business objectives
Chapter II: Improve Consumability of Talent Management Programs
21
33
49
Practice #2: Human Capital Review Guide for Senior Executives

A guide to facilitate effective business leaderled HIPO and succession plans
57
Practice #3: Business Leader People Practice Proficiencies

A process and tool to clarify HR and line leaders unique roles and activities that most impact talent outcomes
67
Practice #4: Talent Management Product Creation Guidelines

A project management framework and guidelines to ensure HR engages stakeholders
in creating and delivering talent management solutions that meet business needs
73
Practice #5: Business-Integrated Talent Management Delivery

A marketing strategy applied to HR to improve the relevance and consumability of talent management solutions
77
Chapter III: Leverage Soft and Hard Accountability to Improve Outcomes
91
Practice #6: Line LeaderOwned Talent Planning and Accountability

A decentralized talent management process that provides individual line leaders
ownership over talent management priorities, resources, and accountability
101
Practice #7: Personalized People MBOs

A people-focused MBOsetting process for leaders to ensure personal relevance
and create urgency for improving talent outcomes
119
Practice #8: Strength and Health Talent Portfolio Review

A talent review and recognition process that instills effective talent management
behaviors in leaders to ensure organization-wide and long-term impact
135
Ordering Research
149
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viii
The Corporate Leadership Councils Talent Champions Series

The Councils Talent Champions research identifies profi les of effective talent
managers and strategies for HR to improve the effectiveness of business leaders
at talent management. This series complements the Councils 2007 research,
Building Next-Generation HRLine Partnerships, which focuses on HRs role in
supporting line leaders. Creating Talent Champions examines the other half of
the HRLine relationshipthe business leader.
In Volume I of Creating Talent Champions, the Council presents empirical
analysis of 8,851 completed 180-degree assessments of business leaders at
more than 50 member organizations to understand the competencies, time
signatures, and talent management activities of business leaders. This research
reveals which skills, knowledge, and behaviors help leaders achieve superior
talent outcomes.
In this study, Volume II of the research, the Council provides examples of
tactics and strategies to effectively engage business leaders in the right talent
management activities. In particular, this study helps HR:
Build Relevance of Talent Management Programs;
Improve Consumability of Talent Management Programs; and
Leverage Soft and Hard Accountability to Improve Outcomes.
Overview of CLCs Study of Business Leader Effectiveness at Talent Management
Council Series on Creating Talent Champions
Creating Talent
Champions
(Volume I)
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Creating Talent
Champions
(Volume II)

(Volume I)

(Volume II)
Profiles of Successful Business Leaders:

A Quantitative Analysis
Best Practices for Engaging Business

Leaders in Talent Management
Critical Questions
Addressed
Critical Questions
Addressed
What is the mind-set of a Talent

Champion?
What are the skills and knowledge
of a Talent Champion?
What talent management activities
do Talent Champions focus on?
How can HR create talent

management activities that are
relevant to the business?
How can HR improve the
consumability of talent programs?
What can HR do to leverage soft
and hard accountability to drive
talent outcomes?
ix
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A Guide to Online Resources at www.clc.executiveboard.com

Access the below tools and templates on the Councils Web site
www.clc.executiveboard.comto improve business leaders talent management outcomes
Build Relevance of Talent Management Programs
Improve Consumability of Talent Management Programs
Leverage Soft and Hard Accountability to Improve Outcomes
Diagnosing and Addressing Challenges
Prioritizing Talent Management Activities for Business Leaders
Driving Effective Accountability
Strategic People Agenda (SPA) Process Templates (Standard Chartered)

Use this presentation template to create an integrated, business leaderled talent
review that is relevant to the individual leader.
2
Strategic Talent Planning Toolkit

Use this end-to-end talent planning toolkit to engage your leaders in creating a
business-relevant talent plan.
HR Business Partner Conversation Guide to
Increase Business Relevance of Talent Discussions
Give this guide to HR business partners to engage business leaders in a
business-relevant talent planning discussion.
Customized Talent Management Dashboard (Schneider Electric)
Use this tool to develop a customized talent dashboard for your business leaders.
12
Human Capital Review Guidelines (Marriott)

Help prioritize business leaderled HIPO and succession planning activities by
providing them with guidance not only on what to do but also how to do it.
6
People Practice Proficiencies Tool (Standard Bank)

Use this tool to clarify leaders roles and skill needs across each stage of the
employee lifecycle and appropriate HR support for each.
Integrating Talent Management into Business Leaders Workflow
Talent Management Product Creation Guidelines (Juniper)

Use this project management framework and diagnostic questions to engage
stakeholders in creating and delivering solutions that meet business needs and
integrate with leaders workflow.
Line Leader Talent Objective Setting and Resource Allocation Tool (Gap)
Use this tool to enable business leader ownership of the talent priorities
and resources for which they are held accountable.
13
14
15
Shared Goal Template (Pepsi Bottling Group)

Use this guide to facilitate discussions between HR business partners and managers
around areas of shared accountability.
Business Leader People MBO Selection Tool (CLC)
Use this tool to enable leaders to select relevant and high-quality people objectives.
Goal Alignment Checklist (Seagate Technology)
Use this template to help HR business partners and business leaders align their goals
at the business unit and enterprise levels.
HR Product Charter Document (Apple)

Use this template to apply a product development approach to creating HR
programs to ensure they match business needs.
End-to-End Consumability Strategies and Tools
10
11
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Talent Management Reference Cards (Lion Nathan)

Use these cards to streamline HR communication and improve leader utilization
and impact.
Talent Management Consumability Feedback Survey (Lion Nathan)
Use this survey to obtain business leader feedback on how to simplify and improve the
value and outcome of HR programs.
CLC Consumability Diagnostic
Use this self-diagnostic to assess the consumability of your talent management
programs and solutions.
xi
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xii
Letter to the Membership

Despite significant investments in talent management programs, many organizations continue to
face major talent challenges, including talent and skills shortages. While poor talent outcomes can be
partly explained by poor talent management programs, Council research fi nds that a majority of talent
outcomes is explained by poor HR delivery and line leader execution.
Last year, the Council examined the first part of this challengeHR service deliverythrough its work,
Building Next-Generation HRLine Partnerships, which identified the skills, activities, and competencies of
effective HR business partners.
This year, the Council is examining the other part of the challengeline leader execution on talent
activitiesthrough the Creating Talent Champions initiative.
This study consists of a two-part investigation:
Creating Talent Champions (Volume I)Profiles of Successful Business Leaders: A Quantitative Analysis
presents a survey-based, quantitative analysis of 8,851 completed 180-degree assessments of business
leaders at more than 50 member organizations to identify the skills, knowledge, and behaviors of the
business leaders who achieve superior talent outcomes.
Creating Talent Champions (Volume II)Best Practices for Engaging Business Leaders in Talent
Management provides best practice strategies on how HR can improve business leader effectiveness at and
commitment to talent management.
It is our hope that this initiative will support member organizations in improving the effectiveness of
their business leaders at talent management. If there are questions related to improving business leaders
effectiveness at and commitment to talent management that you do not find in this study, we encourage
you to contact the Councils research team for further assistance. As always we encourage and look
forward to your feedback.
With our continued appreciation,
Washington, D.C., Chicago, San Francisco, London, New Delhi, and Sydney
September 2008
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xiii
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xiv
With Sincere Appreciation

The Corporate Leadership Council would like to express its gratitude to the following individuals who contributed time and insight to the
development of this study.
Lisa Roberts
Senior Manager, Talent Development
Helen Handfield-Jones
President
John Berisford
SVP of HR
Burger King Corporation
Handfield Jones Inc.
The Pepsi Bottling Group, Inc.
Pete Smith
Chief Human Resources Officer
Mark Davidson
Global HR Program Deployment
Trisha Wolfe
Project Manager, Organizational Development
Juniper Networks, Inc.
Schneider Electric North America
Matt Pease
Vice President of Executive Solutions
Bob Barbour
Chief Human Resources Officer
Ricardo Rosa
HR Director
DDI, Inc.
Lion Nathan Limited
Standard Bank Group Ltd.

Corporate Services Division
Peter Block
Principal
Tracy Keevers
Director, Leadership Capability Team
Pavneet Bajwa
Talent Manager, Group Talent Management
Designed Learning Inc.
Lion Nathan Limited
Standard Chartered PLC
Eric Severson
Vice President of HR
Michele DiMartino
Senior Vice President, Human Resources,
Global Brand Management and Practice
Leader Organizational Capability
Geraldine Haley
Group Head, Talent Management
and Leadership Development
Gap Inc. Outlet
Marriott International, Inc.

Linda Strom Petchenik
Managing Principal
Growthlines, Inc.
Advisors to Our Work

The Corporate Leadership Council expresses its appreciation to the individuals and organization who have so generously contributed their time
and expertise to our work. Their contributions have been invaluable, and we extend our sincere thanks.
3i Group plc
Abbott Laboratories
AECOM Technology Corporation
Air Canada
Alcatel-Lucent
AllianceBernstein, L.P.
Alliance Data Systems Corporation
Allianz Global Investors AG
Alstom Power, Inc.
Ameriprise Financial, Inc.
Apple Inc.
Austin Energy
Australia and New Zealand Banking
Group Limited
Australian Taxation Office
Avnet, Inc.
Bank of America Corporation
Barclays PLC
Bayer AG
Bell Canada International, Inc.
The Black & Decker Corporation
Blue Cross Blue Shield of California
BMC Software, Inc.
Bremer Financial Corporation
BT Group plc
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Canadian Ministry of Government Services

Canadian Pacific Railway Ltd.
Cargill, Inc.
Caterpillar, Inc.
Canadian Imperial Bank of Commerce (CIBC)
The Clorox Company
Coca-Cola Bottling Co. Consolidated
Coca-Cola Enterprises, Inc.
Constellation Energy Group, Inc.
Corinthian Colleges, Inc.
Crosstex Energy Services, L.P.
CVS Corporation
Deutsche Bank AG
Dunn & Bradstreet
eBay, Inc.
EnPro Industries, Inc.
Fannie Mae
FedEx Corporation
Ferro Corporation
Fidelity Investments
Gap Inc. Outlet
General Motors Corporation
Grant Thornton LLP
Ingeus UK Ltd.
ING Groep N.V.
Intuit, Inc.
JetBlue Airways Corporation
Johns Manville Corporation

Johnson & Johnson
Levi Strauss & Company
Lion Nathan Limited
Loyalty Management Group Limited
The McGraw-Hill Companies, Inc.
Menasha Packaging Company LLC
National Oilwell Varco
Nestl UK Ltd
New York & Company
NIKE, Inc.
The Phoenix Companies, Inc.
PMC-Sierra, Inc.
The PMI Group, Inc.
Ontario Public Service
QUALCOMM, Inc.
QVC, Inc.
The Regence Group
REI (Recreational Equipment, Inc.)
Reuters Group PLC
Royal Bank of Canada
S.W.I.F.T. SCRL
Salt River Project
Santos Ltd.
Schneider Electric North America

Scotiabank
The Sherwin-Williams Company
Sigma-Aldrich Co.
Sodexho
Standard Bank Group Ltd.
Corporate Services Division
Sterling Financial Corporation
Stockland Corporation Limited
Sun Microsystems, Inc.
Syngenta
T. Rowe Price Group, Inc.
Telecom Corporation of
New Zealand Ltd.
Telstra Corporation Limited
The TJX Companies, Inc.
Unilever PLC
United States Patent and Trademark Office
The University of Michigan
University of Notre Dame
Wachovia Corporation
Wal-Mart Stores, Inc.
The Western Union Company
Wyeth
Xerox Corporation
xv
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xvi

Best practices for engaging business leaders in talent management
Chapter I:
Build Relevance of
Talent Management Programs
What are the most effective strategies to improve
the relevance of talent management activities?
How can HR create a high-quality talent discussion
that is relevant to business priorities and engage
leaders in talent activities?
Profiled Case Example
Chapter II:
Improve Consumability of
How can HR help business leaders make better
talent decisions?
How can HR integrate talent management
solutions into business leaders workflow?
Chapter III:
Leverage Soft and Hard
Accountability to Improve Outcomes
What are the most effective accountability strategies
to engage business leaders in talent management
activities?
How can organizations leverage peer accountability
to improve the urgency of talent management
accountability?
How can organizations ensure that the talent
management behaviors of business leaders support
the talent outcomes of the wider organization?
Profiled Case Examples
Source: Corporate Leadership Council research.

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xvii
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Council Essay
Improving Business Leaders Commitment
to and Effectiveness at Talent Management
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Creating Talent Champions (Volume II)
Substantial Talent Investments Fail to Deliver

Business Leaders Making Significant Talent Investments
Leaders across the organization report that they are spending significant time
on talent management; business leaders with P&L responsibility spend more
than 21 hours per week, while CEOs report spending more than one-third of
their time.
Business Leaders Still Reporting Talent Shortfalls
Yet, business leaders still report critical talent shortfalls across a number of
measures. Nearly two-thirds of business leaders report employee shortages,
and more than half of business leaders feel their existing staff lack necessary
skills. Finally, and most troubling, four in five leaders feel they do not have
the people they need for their business to be successful.
Disappointing Returns Despite Increasing Talent Investments

Business leaders are investing
significant time in talent management
Talent Management Time Investment
Constituency
yet the majority of them believe

they lack the people to be successful
Have You Recently Experienced
a Shortage of Employees?
Have You Recently

Suffered from a Lack of Skills
Among the Employees You Have?
Business Leaders
Business Leaders
Time
No
Business
Leaders
The average P&L owner reports that he or she

spends more than 21 hours per week on talent
issues.
No
39%
46%
61%
54%
Yes
Yes
The CEO
CEOs report that they spend more than one-third

of their time on talent management.
The Board
In 2008, 53% of boards expect to increase their

time allocated to talent management compared to
7% that plan to decrease. This is the area of largest
increase across all board-related activities.
My Organization Has the People It Needs to Be Successful

Business Leaders
Agree
Disagree
32%
21%
47%
Neutral
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Chief Human Resources Officers

Focused on Improving Line Effectiveness
Increased Focus on Talent Management Execution
The Councils 2008 Agenda Survey reflected the memberships continuing
concern with talent management implementation. Similar to last year, when
the Council studied the effectiveness of the HR business partner in driving
talent management, this year the membership directed us to the other
side of the partnership: improving the line leaders effectiveness at talent
management. More than 90% of chief human resources officers ranked
increasing the talent management effectiveness of the line as a critical priority,
reflecting HRs realization that the line is absolutely necessary to realizing
returns on investments in talent management programs.
Clear Mandate to Improve Execution

Heads of HR focus on helping the line improve talent management effectiveness
CLC 2008 Agenda Poll Analysis
Top Four Priorities
100%
92%
Getting Paid for Previous Investments

81%
Ive built new programs, created new tools, and provided

new training. Now its our job in HR to get business leaders
to get the job done.
Global Head of HR
Pharmaceuticals Company
79%
71%
Percentage
of CHROs*
Indicating
Important
or Very
Important
50%
Fewer HR Resources
Necessitates Line Ownership
With increasing amounts of our work being outsourced, we
simply dont have the resources to support the line anymore
and have to rely on improved manager effectiveness at talent
management.
SVP of HR
Financial Services
Organization
0%
Increasing
the Talent
Management
Effectiveness
of the Line
Selecting and
Implementing
HR Metrics
Improving
Workforce
Planning
Note: The Council examined more than 40 distinct priorities. Data for the top four are presented.
Managing the
Central HR Team
Source: CLC Talent Management Effectiveness Survey; CLC 2008 Agenda Survey; Corporate Leadership Council research.
* Chief Human Resources Officer.

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Three Root Causes of Limited HR Program Impact

HR Program Design Accounts for One-Third of Variation
The Council identified three root causes for the limited impact of talent
programs. Over the past years, HR, as well as the Corporate Leadership
Council, has focused on the first root cause, poor HR program design. This
has been for good reason as poor HR program design has accounted for nearly
one-third of the variation in talent management program effectiveness. Yet, as
HR functions have increased the quality of their talent management programs,
there remains limited leverage to be gained by continuing to focus on program
design.
Poor HR Program Implementation Responsible for Remaining Variation

HR must focus on the remaining two-thirds of variation in talent management
program effectiveness, which can be explained by poor HR program
implementation. There are two components of poor implementation: poor
HR delivery and poor HR support of line implementation. Last year, the
Council addressed the former with its work on the HR business partner,
Building Next-Generation HRLine Partnerships. This years work is focused on
the latter component: the relatively uncharted territory of improving the lines
effectiveness at talent management, which accounts for 34% of the variation in
talent management program effectiveness.
Effective HR Programs Overcome Three Root-Cause Problems

The HRLine interaction accounts for two-thirds of the variation in talent management program effectiveness
Talent Management Impact Root-Cause Analysis
Limited HR Program
Business Impact
Poor HR Program
Implementation
Root Cause #1:

Poor HR Program Design
Root Cause #2:

Poor HR Delivery
Root Cause #3:

Poor HR Support of
Line Implementation
100%
Portion of
Variation
in Talent
Management
Program
Effectiveness
Explained
34%
50%
34%
Two-thirds of talent
management program
effectiveness is
a function of the
HRLine interaction.
32%
0%
HR Program Design
HR Staff Effectiveness
Line Effectiveness
at Talent Management
Sample CLC Resource
Sample CLC Resource
Sample CLC Resource
Improving Talent
Management
Outcomes
Building NextGeneration HR
Line Partnerships
Creating Talent
Champions
Focus
of This
Research
Source: CLC Talent Management Effectiveness Survey; Corporate Leadership

Council, Building Next-Generation HRLine Partnerships, Washington, D.C.:
Corporate Executive Board; Corporate Leadership Council research.
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HR Should Focus on Overcoming the Barriers

to Business Leader Talent Management Effectiveness
Business Leaders Are the Most Critical to Talent Outcomes
HR should focus on improving the talent management performance of
business leadersmanagers with significant responsibility for profit, loss,
and budget (or equivalent)rather than frontline managers. Council research
shows that variation in business leader effectiveness at talent management
accounts for 66% of overall talent outcomes, and these leaders largely own
the performance of the business and exert greater influence on employees
due to wider spans of control.
Importance of Business Leaders
Business Leaders Are the Key Leverage Point

for Improving Talent Management Outcomes
HR must focus on how to improve the talent management performance of business leaders
Importance of Business Leaders to Talent Outcomes
1. Business Leaders Talent Management Activities Drive Talent Outcomes

Relative Importance of Managerial Levels
Business Leader
Managers with significant
profit, loss, budget
responsibility, or equivalent
Frontline Manager
Managers without significant
profit, loss, budget
responsibility, or equivalent
34%
Business
Leaders
Portion of
Variation
in Talent
Outcomes
Explained
66%
Frontline
Managers
Business Leaders
Frontline Managers
2. Business Leaders Own Business Outcomes

Business leaders have more variable compensation at risk (82%) relative to frontline
managers (61%) based on business performance.
Employees
3. Business Leaders Have Larger Spans of Control

On average, business leaders have a managerial span of 112 (7 direct and 105 indirect),
while frontline managers have a span of 4 (only direct reports).
Note: Amount of variation in program effectiveness is determined by conducting a multivariate analysis of variation (MANOVA).
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Source: CLC Talent Management Effectiveness Survey; Corporate Leadership Council research.
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10
Four Talent Mind-Sets for Business Leaders

Business Leader Commitment and Effectiveness Determines Mind-Set
The Councils quantitative work on this topic, Creating Talent Champions
(Volume I), identifies four talent mind-sets for business leaders, based on
their level of effectiveness at and commitment to talent management. Those
who are both effective and committed represent 19% of the business leader
population (Talent Champions). Those who believe in the importance of
talent management, but are ineffective at it, are called Strivers (42% of the
population). Those who are effective at, but lack real commitment to, talent
management are known as the Half-Hearted (8% of the population). Finally,
those who are neither committed to nor effective at talent management are
called Talent Rejecters and make up 31% of the population.
Do Not Avoid Developing Rejecters

Strivers are clearly the group most ready to develop into Talent Champions
as they only require an improvement in talent management effectiveness. That
said, HR should avoid the temptation to ignore Talent Rejecters. Representing
31% of the population, it is unrealistic to replace this population. Instead, HR
must focus on improving Talent Rejecters effectiveness at and commitment to
talent management, as the possible talent outcome rewards are significant, as
shown on page 13.
Talent Mind-Sets
Few Business Leaders Are Fully Committed

to and Effective at Talent Management
The largest group is committed to the importance of talent management but struggles with effectiveness
Distribution of Business Leaders
High
Strivers
Strivers believe in the importance of talent
management but lack effectiveness at critical talent
management activities.
Talent Champions
Talent Champions firmly believe that human capital
is critical to the organizations success and effectively
execute against the most important activities.
42%
19%
Talent
Management
Commitment1
Sample Talent
Outcomes
Employee effort levels are
20% lower than average.
Thirty-two percent of
employees are at risk
of turnover.
Business unit profit is
6% lower than average.
Business unit revenue
is 7% less than average.
1
Low
Talent Rejecters
Talent Rejecters are not convinced that talent
management solves business challenges nor do
they effectively execute against talent management
activities.
nt
31%
Talent Management Effectiveness2
Talent management commitment includes both business leaders individual enjoyment and commitment to talent
management and business leaders perceptions of its importance to the organization. High talent management commitment
is defined as an average score of six or greater across all questions concerning commitment to talent management.
Talent management effectiveness consists of business leaders performance at both organization-wide talent management
activities and individual talent management activities. High talent management effectiveness is defined as an average score
of six or greater across all questions concerning effectiveness at talent management.
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The Half-Hearted
The Half-Hearted are not convinced that talent
management solves business challenges, but they are
effective at critical talent management activities.
Ta
M alnen t
agem
e
Low
Sample Talent
Outcomes
Employee effort levels
are 25% greater than
average.
Six percent of employees
are at risk of turnover.
Business unit profit is 6%
greater than average.
Business unit revenue is
7% greater than average.
8%
High
Source: CLC Talent Management Effectiveness Survey;
Corporate Leadership Council research.
11
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Commitment and Effectiveness Together Create Larger Returns

Reforming Talent Rejecters Provides Opportunity for Cumulative Benefit
Business leaders deliver much better talent outcomes if they are committed
and effective. This chart underlines why it is so important to improve the
Talent Rejecters. If Talent Rejecters become more committed to talent
management, talent outcomes improve by 2%. If Talent Rejecters effectiveness
at talent management increases, then talent outcomes improve by 12%.
However, if Talent Rejecters improve both effectiveness at and commitment
to talent management, they can realize an up to 29% improvement in talent
outcomes, the combination of the total impact in isolation (14%) and a 15%
bonus from the cumulative effect.
Talent Outcomes Defined

The Council aggregated all of the below measures into an overall measure
of talent outcomes.
Definition of Talent Outcomes
Measure
Categories
Bench
Strength
Organization
Culture
Legal
Compliance
Internal
Equity
Engagement
Discretionary
Effort
Intent to Stay
Specific Criteria
A deep bench across all positions

A deep bench for the most critical positions
High-performing talent placed in the right part of the organization
Right mix of skills within project teams
Right person with right job
Organizational values present in direct reports
Minimal safety problems
Minimal legal problems
Appropriate pay differentiation
Diverse employee base
Employee commitment to the organization, team, manager,
day-to-day work
Employee willingness to put forth additional effort
Employee intent to stay with the organization
12
The Importance of Commitment and Effectiveness
Business Leaders Must Be Committed and Effective

to Maximize the Impact on Talent Outcomes
The combination of the two generates disproportionate returns
Impact of Business Leader Commitment and Effectiveness on Talent Management Outcomes
29%
The combination of commitment

and effectiveness more than
doubles the impact on talent
outcomes of commitment and
effectiveness alone.
Commitment
30%
15%
Ta
n
M ale
nagt
em en
Maximum
Impact on Talent 15%
Outcomes*
Effectiveness
Total Impact
of Commitment
and Effectiveness
in Isolation
12%
12%
2%
2%
0%
Maximum
Impact of
Committed
Commitment to Talent
Management in Isolation
Maximum
Impact of
Effective
Effectiveness at Talent
Management in Isolation
Note: The maximum total impact on talent outcomes is calculated by comparing two statistical estimates: the predicted impact
when a talent program attribute scores high on a driver and the predicted impact when a talent program attribute scores
low on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
Maximumand
Impact
of
Committed
Effective
Commitment to and
Effectiveness at Talent
Management
* See Talent Outcomes Defined on page 12 for a definition of talent outcomes.

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13
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Focus on Improving Effectiveness

and Commitment of All Business Leaders
Improving Only Effectiveness or Commitment Fails
to Achieve Maximum Benefit
It is critical to improve the effectiveness and commitment of all business
leaders, as failing to do so leaves substantial gains in talent outcomes on the
table:
Strivers-Only ApproachFocusing on only improving the talent
management effectiveness of Strivers achieves 38% of the total
potential benefit.
Rejecters-Only ApproachFocusing on only improving talent
management effectiveness and commitment of Rejecters achieves 42%
of the potential benefit.
Half-Hearted-Only ApproachFocusing on only improving talent
management commitment of the Half-Hearted achieves 20%
of the potential benefit.
14
The Importance of Commitment and Effectiveness (Continued)
Choosing a Strategy for Focus

HR must work to improve all business leaders
nt
Ta le
Effectiveness
Strategy 3:
Improve Commitment of the Half-Hearted
Commitment
Ta le
Strategy 2:
Improve Effectiveness and Commitment of Rejecters
Commitment
Commitment
Strategy I:
Improve Effectiveness of the Strivers
nt
Effectiveness
Ta le
nt
Effectiveness
42%
38%
20%
Percentage of Total Talent

Outcome* Achieved

Outcome* Achieved
Know Where to Focus

1. What is your largest group?
2. Is commitment or effectiveness a greater problem?
3. Which is easier to improve at your organization?

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Outcome* Achieved
Half-Hearted Are Contagious

Council research shows that Half-Hearted business
leaders reduce the effectiveness of other managers by
up to 23%.
15
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Few Differences in Drivers of Commitment and Effectiveness

Commitment and Effectiveness Drivers the Same
Council research shows that commitment and effectiveness are driven by
similar factors, though those factors affect commitment and effectiveness in
different ways. Therefore, a different strategy must be employed for improving
commitment and effectiveness.
CommitmentTo improve business leaders belief in the importance
of talent management, HR must focus on the following strategies,
in rank order:
Soft Accountability (up to 19% improvement)The use of
intangible and indirect incentives within the culture and environment
(e.g., providing visibility into business leaders performance on talent
metrics) to influence behavior
Consumability (up to 11% improvement)The ability of business
leaders to understand, access, and use talent solutions when needed
Relevance (up to 5% improvement)The development of talent
programs that are relevant to business leaders business objectives,
processes, and talent management challenges
EffectivenessTo ensure business leaders are able to deliver effectively
on talent outcomes, HR must improve the following drivers:
Hard Accountability (up to 11% improvement)The use of tangible
and direct incentives, such as performance reviews and MBOs
(e.g., promotion or retention rate)
Relevance (up to 10% improvement)
Consumability (up to 5% improvement)
16
Drivers of Commitment and Effectiveness
Similar Drivers of Commitment and Effectiveness

Maximum Impact on Commitment
Maximum Impact on Effectiveness
20%
20%
Maximum
Impact on 10%
Commitment
Maximum
Impact on 10%
Effectiveness
0%
0%
51
101
151
201
51
Driver
101
151
201
Driver
Top Drivers of Commitment

1. Soft Accountability: Improves Commitment by 19%
2. Consumability: Improves Commitment by 11%
3. Relevance: Improves Commitment by 5%
Top Drivers of Effectiveness

1. Hard Accountability: Improves Effectiveness by 11%
2. Relevance: Improves Effectiveness by 10%
3. Consumability: Improves Effectiveness by 5%
Organizations should moderately alter their approach

based on a need to improve commitment and effectiveness.
Source: CLC Talent Management Effectiveness Survey;
Corporate Leadership Council research.
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Alter Strategies Based on Whether

Commitment or Effectiveness Is the Key Challenge
Focus Efforts on Addressing Either Commitment or Effectiveness
Organizations should vary their strategies based on whether commitment
or effectiveness most needs to be addressed. The Council recommends the
following strategies for organizations with large populations of the following
groups:
Talent Rejecters and Half-HeartedFocus on increasing soft
accountability (up to 19% improvement in commitment), consumability
(up to 11% improvement in commitment), and relevance of talent
activities (up to a 5% improvement in commitment).
Strivers and Talent RejectersFocus on improving the hard
accountability for talent outcomes (up to 11% improvement in
effectiveness), relevance of talent activities (up to 10% improvement
in effectiveness), and consumability (up to a 5% improvement in
effectiveness).
18
Drivers of Commitment and Effectiveness (Continued)
Different Situations Require Slightly Different Strategies

HR should alter strategy based on solving a commitment or an effectiveness challenge
Strivers
Talent Champions
High
42%
Top Drivers
of Commitment
1. Soft Accountability (19%)
2. Consumability (11%)
3. Relevance (5%)
19%
Talent
Management
Commitment1
Talent Rejecters
The Half-Hearted
Low
T
a l en
M an
t
agem
en
31%
Low
8%
Talent Management Effectiveness2
High
Top Drivers
of Effectiveness
1. Hard Accountability (11%)
2. Relevance (10%)
3. Consumability (5%)
1
Talent management commitment includes both business leaders individual enjoyment and commitment to talent
management and business leaders perceptions of its importance to the organization. High talent management commitment
is defined as an average score of six or greater across all questions concerning commitment to talent management.
Talent management effectiveness consists of business leaders performance at both organization-wide talent management
activities and individual talent management activities. High talent management effectiveness is defined as an average score
of six or greater across all questions concerning effectiveness at talent management.
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19
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20

Chapter I:
Build Relevance of
What are the most effective strategies to improve
the relevance of talent management activities?
How can HR create a high-quality talent discussion
that is relevant to business priorities and engage
Chapter II:
talent decisions?
Chapter III:
activities?
accountability?

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Focus on Relevance to Drive Effectiveness

Integrating Talent Programs with Business Processes Is Critical
Business leaders need talent management activities that are integrated and
aligned with their workflow as well as with the business. Leaders can realize
improvements in their talent outcomes when programs do the following:
1. Improve leaders ability to manage employees (up to 12% improvement).
2. Integrate with business leaders process (up to 10% improvement).
3. Align with managers objectives (up to 10% improvement).
Reducing Time Spent Fails to Drive Outcomes

Decreasing the time business leaders spend on talent management alone fails
to make an impact. Contrary to conventional wisdom, it is not enough for
talent programs to simply be easier and less time-consuming, but they must,
most importantly, be integrated with business processes and aligned
to business goals.
Furthermore, business leaders with more relevant talent programs are more
effective at talent management by 10% and more committed to it by 5%.
22
Relevance Drivers
Improve Talent Management Effectiveness Through Relevance

Focus on talent program integration with business processes as well as alignment of talent objectives to drive impact
Impact of Relevance Drivers on Talent Outcomes
16%
Relevance Impacts Effectiveness

and Commitment
10%
Maximum
Impact on Talent
Outcomes*
Impact on Commitment 5%
12%
10%
8%
6%
6%
<1%
1%
<1%
1%
0%
s
y
y
d
th
on
ith s
M s
am ss
wi ies
a te e s s
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r
e M ees
e
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e
e
g
v
v
e
d
g
e
e
d
t
v
i
i
c
o
o
o
n
e
y
y
e
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p
t
m
a t ior
p r lo
p r lo
Pr usi
I nt r o
ig n j e c
e S ge
m p
Im mp
Is ss P
din s Pr
nd y B
Al Ob
m a na
r
i
s I Em
s
t
a
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o
e
m
r s
o am
en sin
ns h M
am y
eT M
r a My
gr of M
a s lent
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t io w i t
em B u
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og i ng
o
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u
r
i
r
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r
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t
y
a
r i an
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t P na g
S o te d
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sA M
an M
r io y M
M ith
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nt gr a
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sD
le n M a
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T rs
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ra
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ag r e I
og
ce
tP
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n
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rm
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a
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l
T
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Pe
Ta
when a talent program attribute scores high on a driver and the predicted impact when a talent program attribute scores
low on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
Talent Champions
Impact on Effectiveness 10%
Implications for HR
Align talent management solutions with business
processes and priorities.
Ensure consistency across all business unit
talent objectives.
Provide business leaders with integrated talent
management solutions.

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Overcome Time Challenges by Increasing Relevance

Time Less of a Barrier as Relevance Increases
HR typically addresses business leaders objections that they do not have
enough time for talent management by solely focusing on making programs
simpler to use. Council research shows, though, that as business leaders
increasingly see the relevance of talent management activities to their business
goals, they are less likely to see time as the primary barrier to doing talent
management. This is further proven by the fact that Talent Champions are
93% more likely to cite lack of budget than lack of time as the most common
barrier to effective talent management. Therefore, HR should focus on
ensuring that talent programs are first and foremost relevant to business
leaders needs and workflow before making them simpler to use. This will
encourage business leaders to invest the time required to produce great
talent outcomes.
24
Building Relevance
Talent Management Barriers Shift as Relevance Increases

As relevance increases, fewer business leaders cite lack of time
as the critical barrier to involvement in talent management programs
Most Common Talent Management Barriers
By Talent Management Relevance as Rated by Business Leaders
60%
Time
Percent
Business
Leaders
Almost 60% of business leaders cite

time as the biggest barrier to doing
talent management when it is not
viewed as relevant
30%
and more likely

to cite lack of budget.
Budget
HR Support
however, as relevance
increases, business leaders
are less likely to cite time
as a barrier
Senior Leadership Support

0%
Not Relevant
Talent Management
Very Relevant
Implications for HR
Talent Champions are 93% more likely to cite lack of budget than lack of time as the most common barrier to effective talent management.
Note: Relevance is based on business leaders response to the question,

How relevant is talent management to my business operations?
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Relevance Critical to Talent Outcomes

Involve Business Leaders in HR Program Development and Delivery
Improving the relevance of talent management not only reduces business
leaders time objections, but it also has a 12% positive impact on talent
outcomes. The key to improving relevance is getting business leaders actively
involved in talent management. Increased business leader involvement in HR
program development and delivery can result in an up to 25% increase in their
perception of the relevance of the talent program to their needs.
26
Involvement Builds Relevance
Build Relevance Through Involvement

Increasing relevance is more important than decreasing time to drive talent outcomes
Impact of Relevance on Talent Management Outcomes
14%
12%
Impact of Business Leader Involvement on Relevance
Improving relevance
of talent management
improves talent outcomes
and involving business leaders

in HR programs improves
relevance by up to 25%.
30%
Maximum
Impact on Talent
Outcomes*
Maximum
Impact on
Relevance
7%
15%
< 1%
1%
0%
0%
Talent Management
Programs Are
Relevant to My
Business
Talent Management
Programs Dont
Take That Much
Time to Do
Low Involvement
High Involvement
Depth of Business Leader Involvement in

HR Program Development and Delivery
Unanswered Question
Given business leaders time constraints, in what stage of talent
programs should they be involved to most improve outcomes?
Note: Involvement is defined as participation in the diagnosis, identification of solutions, process development, and delivery of HR
programs. The maximum total impact on talent outcomes is calculated by comparing two statistical estimates: the predicted
impact when a talent program attribute scores high on a driver and the predicted impact when a talent program attribute
scores low on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
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27
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Improve Talent Outcomes by Including Business

Leaders in Talent Issue Diagnosis and Solution Identification
Drive Talent Outcomes by Involving Leaders at the Right Time
Given business leaders limited time, it is important to involve them in
HR program development and delivery when it will result in the greatest
improvement in talent outcomes. Council research finds that these most
critical moments to involve leaders are challenge diagnosis (14% impact on
talent outcomes) and solution identification (27% impact on talent outcomes).
Business leaders with great talent outcomes (Talent Champions) invest
their time in those two activities and leave the design of talent management
programs, which has less impact on talent outcomes, to HR.
28
Optimizing Line Partnership
Involve the Line in Talent Issue

Diagnosis and Solution Identification
Talent Champions participate in challenge and solution identification, not process design
The Impact of Business Leader Participation in Talent Programs on Talent Outcomes
30%
Maximum Impact
of Business Leader 15%
Participation on
Talent Outcomes*
Talent Champions participate

in diagnosing challenges and
identifying the right solution
27%
17%
14%
but are not involved in
the technical specifics of
the design process.
< 1%
0%
Line Participates
in Diagnosing
Talent Challenges
Line Participates
in Identifying the
Solution
Talent Review/Planning
Talent Management
Example:
HRBP
Business Leader
when a line involvement attribute scores high on a driver and the predicted impact when a line involvement attribute
scores low on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
Line Participates
in Designing the
Process
Line Participates in
Program Delivery
Talent Management
Program Design
Program Delivery
HIPO
Program

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29
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Four Failure Points of Talent Reviews

Talent Reviews Not Seen as Relevant by Business Leaders
Many organizations involve leaders in talent reviews and planning sessions;
however, most business leaders fail to see the relevance of these sessions to
their business needs and objectives. There are four failure points at most
organizations:
Disjointed Talent ActivitiesMultiple talent assessments across different
talent management areas (e.g., succession planning, workforce planning,
high-potential identification) produce numerous lists of unprioritized
talent-related actions for leaders.
Poor Quality of Talent Review SessionPoor definition of roles
and expectations in different talent processes reduce the quality of
talent discussions.
Talent Discussions Isolated from Business ChallengesTalent
assessments focus solely on individual people without addressing talent
needs to meet business objectives.
Inadequate Execution SupportHR and other line partners do
not provide supporting resources when needed for business-driven
talent needs.
30
Business Leaders Fail to See the Relevance

of Talent Reviews and Planning Sessions
While most organizations involve their business leaders in talent reviews and planning sessions,
business leaders often fail to see the relevance of these sessions due to four shortcomings
Failure Points in Conducting Business-Relevant Talent Sessions
Key HR Challenge: Leaders Fail to See the
Business Relevance of Talent Sessions
Talent Session
2
Disjointed
Talent Activities
Disconnected talent reviews fail to
produce an integrated talent plan.
Engagement
Plan To-Dos
HIPO Plan
To-Dos
Succession
Plan To-Dos
3
Poor Quality of
Talent Review Session
Lack of defined roles and expectations
cause leaders to view talent
management as a check-the-box
activity.
4
Talent Discussions
Isolated from
Business Challenges
Talent planning and reviews focus only
on people challenges and priorities
and occur in isolation from business
objectives and challenges.
Inadequate
Execution Support
HR and other line constituents
do not support leaders talent
needs across the year.
Talent Plan
Talent Review
Business
Strategy
Plan
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31
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32
Integrated Talent Portfolio Review

An integrated, structured talent portfolio review that engages leaders in identifying and addressing critical talent management risks to their business objectives
Industry: Banking
Assets: US$329.2 Billion
Employees: 73,000
Headquarters: London, UK
Situation
Organizations fail to engage leaders in businessrelevant talent review sessions due to a lack of
connection across multiple talent activities, poor
quality talent planning discussions, a focus on
individuals in isolation of business needs, and
inadequate execution support.
Action
Standard Chartered designs a simple talent
portfolio review process, led by business leaders,
that provides them with a prioritized, integrated
talent plan.
Key Components
Component #1: Integrated Talent Assessment
Component #2: Leader-Led Strategic Talent
Planning Meeting
Component #3: Talent Review Anchored in
Business Challenges
Component #4: Integrated Business Unit and
Corporate HR Plan
Results
CEO, business leaders, and HR report high value
and impact from Strategic People Agenda (SPA)
process.
Source: Standard Chartered PLC; Corporate Leadership Council research.

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33
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Addressing the Four Failures

Business-Anchored, Integrated Sessions
Standard Chartered addresses the four barriers to business-relevant talent
reviews by creating a separate 90-minute review between business leaders
and the CEO for an integrated discussion of talent and business objectives.
The following four components are a part of the SPA process:
Component #1: Integrated Talent AssessmentPrioritization of talent
needs across all talent management areas
Component #2: Leader-Led Strategic Talent Planning MeetingClear
definition of expectations of leaders ownership of business unitlevel
talent plan
Component #3: Talent Review Anchored in Business Challenges
Discussion focused first on business challenges and talent capabilities
necessary to achieve business results
Component #4: Integrated Business Unit and Corporate HR Plan
Creation of clear action steps by all parties and infusion of SPA plans
into corporate HR agenda
34
Practice in Context
Overcoming the Barriers to Business-Relevant Talent Reviews

Standard Chartered overcomes key barriers to business-relevant talent
planning by engaging leaders in a business-anchored, integrated talent review process
Failure Points in Conducting
Business-Relevant Talent Reviews
1
Key Components of
Standard Chartereds SPA Process
SPA Preparation Pack
Employee Engagement Summary

Lines represent the percentage of teams with a GrandMean in the range marked on the horizontal axis.
GrandMean 3.88
Exec database
GrandMean 4.16
Exec database
50th percentile
25 percentile
Your 10 HIPO Bets
th
Disjointed Talent
Activities and Plans
Prioritize talent needs for business leaders through an integrated

review across all talent management areas.
Simple templates for review preparation enables line ownership.
GrandMean 4.47
Exec database
75th percentile
X%
Discuss 10 individuals you have
decided to fast track from H3 / H2 population; if
(X teams)
women are not in this list,
x% pls discuss top 3 high potential women in your
teams)your plans for them
business / function(Xand
below the
25 pctl
Key Succession
Risks
th
Name
Development Plan
X% (X teams)
at/above the
Next
role
75th
pctl and timing
Any other comments
Please submit theX%

progress update against the Succession
(X teams)
Planning action plan that was submitted to the GMC in Dec
Your Talent Pipeline

Indicate YOY trend in positioning of teams in quartiles
Discuss challenges for the business / function and specifically provide commentary
Provide general update
on the teams between 25th percentile and 75Th percentile if the YOY trend hasnt
been positive.
What are the critical business talent pools / global pools that
require focused attention in order for you to achieve your
Include score on Q12 question I know what is expected of me

business / functional goals
Maximum 1 slide
for this section
Diversity
& Inclusion
H4s
H3s
B4 & G5
G6 & below
International
Graduates
(X)
MBAs
(X)
(X)
2006 and 2007 intake
H2s
(X)
(X)
Discuss your gender and nationalityYOY

challenges
and
positive
YOYyour
increase
increase
YOY increase
YOY increase
actions
address these.

Key measures
TeamtoCapability
Review
How many IGs retained since
Attrition in 2007
Attrition in 2007
Comment
Attrition in 2007 on the following
Attrition in 2007 measures
2000
Percentage of male &
YOY increase
Please comment on retention

and progression of IGs in 2000
to 2002 pool ( Pam Jackson can
provide this data as they have
recently completed some
analysis)
Key challenges

female
B1 to 3
female % of women at female
Percentage promoted in
Percentage
Performance
distribution
%promoted
of key in
nationality
groups
in B1 to 32007

2007
in 2007
Number of Arabs,
Koreans
Koreans and Mainland
Chinese
Mainland Chinese

female
Progress
to date
Maximum
of 2 slides for this section
Leadership
Capability Building Plans
Arabsfor 2008
Plan
As you think about your business goals, what leadership capabilities do you need to develop in your
Top leaders B1 & B2
Senior leaders B3 & B4
Emerging leaders B5 and below
What leadership capabilities will need to be developed at B4 and above by 2011, which may or may not
be covered by the executive development programmes and therefore may need some specific
interventions or programmes. ( pls refer to the Appendix in the last slide for suggestions on future
leadership capabilities)
How do you see the revised executive and management development programmes being targeted and
utilized within your business or function?
Are you looking to sponsor
p
any specific development activities as an attach or field activity for your
leaders
(From Q2 2008)
(From Q2 2008)
Global English
Rethinking Leadership
Leading For Performance
Professional Development
Lead On
Great Manager Programme
Leading Through
Crucial
Conversations
Leading Across Boundaries
(GMEL)
In Context
Development
Talent
Planet
Leadership Essentials
Component #2: Leader-Led Strategic Talent Planning Meeting
2
Poor Quality of
Talent Review Session
Clearly define roles and expectations for business leaders.

Structured review session enables line ownership of business
unitlevel talent plan.
SPA Meeting
General Manager
HRBP
CEO
Head of HR

3
Talent Discussions
Isolated from
Business Challenges
Initiate talent discussion with explicit focus on business challenges.

Activate leaders business skills by applying business frameworks
to talent management.
Focus on needed capabilities to drive business objectives,
not on individual people.
Inadequate
Execution Support
Follow-up actions embedded into direct reports objectives.

SPA plans inform corporate HR agenda.
Talent SWOT Analysis

Your People Priorities Across Next Three Years
SWOT Analysis
Please refer to material presented in 2007 in SWOT analysis and provide
update on those. This will help to set the context for the rest of the SPA
discussion and key issues maybe explored in more detail later on
SWOT
2008
Expected People
Action
Update
Strengths
Expanded into two

new countries and
hired over 200 new
employees
Campus recruiting
programs launching in 6
more regions in next two
years
Review relevance of
programs to different
talent pools and identify
new opportunities
Reviews currently
underway
Weaknesses
IT staff shortage in
Business Unit A
Loss of organizational
knowledge as a result of
retirements of key staff
2011
Reexamine EVP for IT

group
Create upskilling and
mentoring opportunities
for knowledge transition
Mentor program
launching in May
Opportunities
Opportunity
identified to move
into new
geographical region
Additional business
opportunities in new
markets and new talent
pools
Create task force to learn

about attracting talent in
new markets
Identifying individuals for

taskforce, launching in
July
Threats / Risks
Pending retirements
of three key
executives
Retirements across
executive level
Create plan for more

flexible/part-time work
options
Jun-Getting country-wide
approvals for flexible
work plans
Corporate HR Plan
Corporate HR Talent Initiatives
Q1: Pilot to help managers develop
junior talent
Q2: Retention management project to
understand root causes of attrition
Q3: Campus recruiting program in
United Kingdom

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Business Leaders Own and Drive Their Talent Plans

Talent Planning Integrated with the Business and Strategy Planning Cycle
Standard Chartereds SPA process is a key input into strategic and business
planning and provides business leaders with an integrated and strategic view of
their talent needs to meet business objectives. There are four key features that
differentiate Standard Chartereds SPA process from most talent reviews:
1. Business Leader OwnedThe simple and standardized assessment
templates, in conjunction with a high degree of CEO involvement, drives
business leaders to own and lead the talent assessment.
2. Business Outlook FirstThe talent assessment always begins with a
review of the business outlook to ensure the session is relevant to
business priorities.
3. Holistic Talent AssessmentThe assessment integrates all strategic talent
areas to provide a holistic assessment of business-driven talent needs.
4. Prioritized Action PlanThe assessment produces one action plan for
leaders with prioritized talent needs.
Small Number of Attendees Critical

Only four people participate in the SPA process: the general manager, the
CEO, the head of HR, and the GMs HR business partner. Standard Chartered
purposefully keeps the session small so that it maintains a discussion format,
as opposed to turning into a presentation by the GM.
Providing Leaders an Integrated Understanding of Talent Challenges

Standard Chartereds SPA process is a key input to the business and
strategy planning cycle and engages leaders in prioritizing talent issues for their business
Standard Chartereds Annual Strategic, Budgetary, and Leadership Timeline*
June
July
Strategy
Board Meeting
Interim Performance
Reviews
August
September
October
November
December
January
March
April
May
Strategy Planning
Budget Setting
Succession
Planning
February
Engagement
Survey
Performance
Reviews
Objective
Setting
List of Key Slides Required for Preparation

by General Manager for SPA Review
SPA Process
SPA Review Session
General
Manager
HRBP
Integrated Assessment
Across All Talent Areas
Assessment across talent areas
provides business leaders
with a strategic and integrated
understanding of talent challenges.
* The exact timing of Standard Chartereds business and talent planning events may differ.
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Head of HR
CEO
Background: Annual, structured

talent assessment anchored in
business context led by business
leaders
Objective: To deliver a strategic,
integrated view of talent
prioritiesacross talent areas
required to achieve business
objectives
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Structured and Business-Driven Talent Conversation

Ensure Relevant, High-Quality Conversations
During Standard Chartereds 90-minute SPA meetings, business leaders and
their HR partners review their business unit talent assessments with the CEO
and head of HR and discuss talent-related risks, opportunities, implications,
and follow-up actions for achievement of business goals. There are five critical
inputs that ensure a high-quality conversation:
1. Limited ParticipantsAs previously mentioned, the only participants in
the room for the conversation include the general manager, the CEO, the
head of HR, and the HR business partner, enabling a more focused, indepth, and rigorous discussion.
2. Business-Anchored Discussion, Not PresentationThe talent review is
always initiated by a discussion of the business outlook and objectives. In
addition, all participants understand that the prepared slides are designed
to inform the conversation and are not to be used as a presentation.
3. Clear Role ExpectationsThe roles for each participant in the SPA
process are clearly defined. In particular, business leaders are responsible
for the creation of the SPA pack, have full ownership over their talent
strategy, and lead the talent discussion during the review.
4. CEO InvolvementThe CEOs involvement and expectations drive
urgency for the business leader to take full ownership of the assessment
and follow-up actions. In particular, the CEO provides in advance a set of
three specific talent-related questions to be discussed, in addition to the
information included in the SPA pack.
5. High-Quality PreparationThe central HR team reviews each SPA pack
for comprehensiveness and quality prior to the presentation.
38
Component #2: Leader-Led Strategic Talent Planning Meeting
Engineering a High-Quality Talent Discussion

Standard Chartereds SPA process engages leaders in a high-quality
talent review through a brief, structured, and business-driven talent discussion
SPA Meeting Agenda
Five Critical Inputs to Ensure

High-Quality Talent Discussions
Key Roles in SPA Process
General Manager
HRBP
CEO
Head of HR
SPA Meeting Agenda

8:008:15
Opening Remarks (GM)

Progress on Previous Years SPA Actions
8:159:15
Focused Strategic Talent Discussion

(GM, CEO, Head of HR, HRBP)
GMs Business Outlook
Response to CEOs Top Three Questions
GMs Assessment of Key Talent Areas
9:159:30
Employee Engagement
Diversity and Inclusion
10 Best HIPO Bets
Talent Pipeline
Key Succession Risks
Team Capability Review
Leadership Capability Plans
GMs People Priorities Across Next

Three Years
Table Discussion of Talent Risks to
Achieving Business Objectives
Agreement on Talent Action Plan
(GM, CEO, Head of HR, HRBP)
GM Proposes Action Plan
Table Discussion and Agreement
1. Include Small Group in Discussion.

The small group of the general manager, the
CEO, business leader, head of HR, and the
HR business partner enables a more rigorous
discussion rather than a one-way presentation
to a large group.
2. Begin with the Business Outlook.
The strategic talent discussion begins by
establishing a common understanding around
the table of the business leaders business
outlook.
3. Drive Leader Ownership Through
CEO Expectations.
The CEO holds leaders responsible for
preparation, presentation, and follow-up
activities, increasing urgency on the leader
for ownership.
4. Clearly Define Roles.
The roles for each constituent in the
SPA process are explicitly defined and
communicated in advance.
CEO Role: To prepare three talent-related questions

for each GM and challenge GMs on talent concerns
about achieving business and organizational goals
GM Role: To assess and present an integrated view of
critical talent areas in the business unit and to propose
and execute on a follow-up talent action plan
Head of HR Role: To probe on talent areas of
concern and to provide suggestions for follow-up
and improvement strategies
HRBP Role: To provide support to the GM in
preparation and follow-up and provide unique
perspective on talent issues and implications in the
business unit
Central HR Role: To conduct a quality
check of preparation materials for accuracy
and comprehensiveness
5. Institute HRLed Quality Check.

The central HR team reviews SPA packs prior
to the meeting for quality, comprehensiveness,
and calibration across all business units and
functions.
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Ensuring Talent Reviews Are Anchored in Business Challenges

Integrating Talent Management Priorities into the Business Context
Standard Chartered focuses talent reviews on achieving business goals and
assessing future challenges by applying three insights:
1. Anchor Talent Review in Current Business OutlookBegin talent
reviews with a common understanding of the business outlook and
objectives to deduct talent implications.
2. Apply Business Planning Tools to Talent PlanningProvide business
leaders with familiar frameworks and tools (such as SWOT Analysis) used
for business planning to activate their business skills for talent planning.
3. Focus on Business-Critical CapabilitiesEnsure the discussion is
focused on the capabilities needed to achieve future business objectives
rather than on individual people.
40
Enabling a Business-Driven Talent Discussion

The SPA sessions enable a business-relevant talent discussion by anchoring the conversation in
forward-looking business outlook, using business frameworks, and focusing on critical capabilities
Three Ways to Focus the Talent Portfolio Review on Business Needs
1. Anchor Talent Review in Current Business Outlook.
2. Apply Business Planning Tools to Talent Planning.
3. Focus on Business-Critical Capabilities.
Key Insight: Initiate talent discussion by focusing

on business challenges, not just people challenges.
Key Insight: Activate leaders business skills and knowledge

by applying business planning tools to talent management.
Key Insight: Focus on needed capabilities to drive business

objectives rather than focusing on individual people.
Leadership Capability Building Plans
Your People Priorities Across Next Three Years
As you think about your business goals, what leadership capabilities do you need to develop in your
SWOT Analysis
Please refer to material presented in 2007 in SWOT analysis and provide
update on those. This will help to set the context for the rest of the SPA
discussion and key issues maybe explored in more detail later on
SWOT
Update
Weaknesses
IT staff shortage in
Business Unit A
Loss of organizational
knowledge as a result of
retirements of key staff
Reexamine EVP for IT

group
Create upskilling and
mentoring opportunities
for knowledge transition
Mentor program
launching in May
Opportunity
identified to move
into new
geographical region
Additional business
opportunities in new
markets and new talent
pools
Create task force to learn

about attracting talent in
new markets
Identifying individuals for

taskforce, launching in
July
Pending retirements
of three key
executives
Retirements across
executive level
Create plan for more

flexible/part-time work
options
Jun-Getting country-wide
approvals for flexible
work plans
Global
Given your business strategy, what are the

strengths, weaknesses, opportunities, and risks
across the next three years to your talent portfolio?
What actions will you take to build on your
strengths and opportunities, improve your
weaknesses, and overcome identified risks?
Fast Start
Lead On
Key Discussion Points:
Talent
Planet
Leadership
Leading Through
Crucial
Conversations
Leading Across Boundaries

(GMEL)
Rethinking Leadership
(From Q2 2008)
Leading For Performance
(From Q2 2008)
Global English
Reviews currently
underway
Professional Development
Review relevance of
programs to different
talent pools and identify
new opportunities
In Context
Development
Campus recruiting
programs launching in 6
more regions in next two
years
What leadership capabilities will need to be developed at B4 and above by 2011, which may or may not
be covered by the executive development programmes and therefore may need some specific
interventions or programmes.
How do you see the revised executive and management development programmes being targeted and
utilized within your business or function?
Are you looking to sponsor any specific development activities as an attach or field activity for your
leaders
Great Manager Programme
How will the size, shape, and mix of your business

change across the next three years?
Expected People
Action
Expanded into two

new countries and
hired over 200 new
employees
Threats / Risks
What is your current business/functional strategy?
2011
Strengths
Opportunities
2008
Top leaders
Senior leaders
Emerging leaders
Leadership Essentials

What leadership capabilities do you need to develop
to achieve your current business objectives?
How do you plan to develop those capabilities in
your current leadership population?

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Improved HR Alignment and GM Accountability for Execution

Embedding SPA Plans into Future Workflow
The output of the SPA conversations are business-relevant talent priorities and
action items for both business leaders and HR. Business leaders talent plans
are cascaded throughout their organization, and action items are written into
their and their direct reports MBOs to ensure execution. HR uses the SPA
sessions to identify business-specific needs as well as companywide trends and
priorities. The latter allows them to adjust their corporate talent initiatives and
resource plans to support the most important action items across the business,
ensuring that HRs plans and priorities are directly aligned to the businesss
needs.
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Generating Integrated and Business-Relevant Talent Plans

The SPA session enables business leaders and HR to create targeted
and prioritized talent action plans that align with key business objectives
Individual Business Unit
Integrated Talent Action Plans
Talent Goal Cascade from

GM to Direct Reports
Integrated Talent Action Plan for Business Unit C
Talent Action
for Business
1.Integrated
Increase recruiting
effortsPlan
for MBA
graduatesUnit B
Business Leader
Output from SPA Session
HR to organize campus recruitment program

Leaders to allocate budget and speak at events
Talent Action
for Business
1.Integrated
Increase recruiting
effortsPlan
for MBA
graduatesUnit A
MBOs
MBOs

2. Launch leadership
development
program
in India
1. Increase
recruiting efforts
for MBA
graduates
Focused, Integrated
Talent Action Plans

2. Launch leadership
development program in India
3. Develop improved sales capabilities for mid-level
associates
2. Launch leadership development program in India
associates
MBOs
MBOs

associates
Executive Team Review

of Progress on Action Items
Quarterly Executive
Team Reviews
Corporate HR Agenda
Informed by SPA Action Items
HR Output
from SPA Session
HR Agenda That
Responds to Challenges
Across Business Units
Corporate HR Talent Initiatives

Q1: Pilot to help managers develop
junior talent
Q2: Retention management project to
understand root causes of attrition
Q3: Campus recruiting program in
United Kingdom
HR Resource Allocation Plan
HR budget allocated to key talent

priorities for the business
HR staff deployed to work on
talent areas most critical for
business
HR tools and systems supplied to
key SPA programs for business
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High Impact for CEO, Business Leaders, and HR

Result: Talent Management Responsive to Business Needs
The introduction of the SPA process two years ago resulted in strong
endorsements from the CEO, HR, and business leaders. In particular, CEO
engagement and involvement in strategic talent planning has increased. In
addition, the CEO reports that the SPA process reinforces the importance
of effective talent management to leaders through the structured and
standardized assessment.
In addition, general managers report that the process enables them to connect
the importance of key talent activities with the management of their businesses
and quantifies their talent risks to enable improved talent decision making.
Finally, as a result of the SPA process, the corporate HR function has an HR
agenda that can more proactively and effectively support business needs and is
very clearly aligned and driven by business priorities.
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Results
Engaging Key Stakeholders in Business-Relevant Talent Planning

The SPA process engages the CEO in
strategic talent planning across the organization
clarifies the linkage between business

and talent activities for business leaders
CEO Reports High Value in

Standardized and Structured Approach
Visualizing the Link

Between Talent and Business
The SPA provides a standardized approach, through which we discuss

the people plans on the basis of facts rather than subjective, ill-formed
views. The process has reinforced the need to pick the right people,
empower leaders, and put the right structure in place to help them. It
has been instrumental to getting our top leaders engaged in thinking
about key talent issues, using a simple approach, and explaining how it
will make their jobs easier.
Mervyn Davies
Chairman and Former
Chief Executive Officer
The SPA process forces you to quantify your talent risks and see the costs
to the business, which you could not get by just talking about people. It
drives you to make decisions about talent that might otherwise not have
been on your radar.
John Lorimer
Group Head, Compliance
and Regulatory Risk
and enables HR to create a business-relevant talent agenda
Aligning the HR Agenda to Business Needs

The SPA process enables the HR function to see the key talent priorities
for each of the businesses and functions and then pull together the
collective HR agenda based on the information coming out of the
meetings. The HR services we are delivering now have a much greater
alignment to the business needs.
Geraldine Haley
Group Head, Talent Management
and Leadership Development

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Practice Q&A with Geraldine Haley, Group Head,

Talent Management and Leadership Development
Commentary and Implementation Tips from Standard Chartered PLC
1. How has the process evolved since it was first introduced?

When the process was first introduced, we had to ease leaders into it. We had them fi ll out lists of names of their top 50 people, and we had
conversations that focused on individuals, the top teams, and the succession plans. It was a very important but tactical conversation. Now that
we are in the third year of the SPA process, we are no longer looking at names but looking at broader trends. The focus of the meeting is now
on the capabilities needed to grow the business, how the business is changing, and the talent needed to meet those changing demands. If you
are going to do something like this, start with something that isnt too challenging, yet enables leaders to see the value.
2. In hindsight, what would you have done differently when you first implemented the process?
The first year we had too many people in the room for the SPA meetings. It became too much of a presentation by the leader rather than a real
conversation. Now we limit the people in the room to just the CEO, the head of HR, the leader, and the HR business leader. This enables a real
dialogue to take place between the four people around the table.
3. What was hardest about implementing this practice, and how did you deal with that obstacle?
Whats hardest is ensuring that the limited time each leader has with the CEO is maximized so that all of the important themes are covered
and all of the key issues are surfaced. The structure and discipline of the process are instrumental by providing the templates for a limited
number of slides that help focus leaders on the critical areas. In addition, HR reviews the pack before the meeting for quality and focus.
Implementation Support
Standard Chartered: Implementation Road Map

The Council recommends the following steps to begin implementing Standard Chartereds practice
First Steps: Integrated Talent Portfolio Review
Step #1: Obtain CEO and Business Leader Support for Involvement in Integrated
Talent AssessmentSet clear expectations for roles and responsibilities, time
investment, and returns and benefits for leader-led integrated talent assessments.
Step #2: Provide Business Leaders with Simple Templates to Assess Strategic Talent
AreasCustomize Standard Chartereds templates for your organization and provide
business leaders with simple instructions to assess business-driven challenges and
opportunities across key strategic talent management areas.
Step #3: Ensure That Talent Assessments Are Based in Business StrategyBegin
talent reviews by establishing a common understanding of the business outlook,
incorporate familiar business planning tools into talent planning assessment, and
focus on capabilities required to achieve business objectives.
Step #4: Create a Dedicated Opportunity for a CEOHRBusiness Leader Talent
DiscussionDrive urgency for business leader ownership and enable a high-quality
talent discussion through CEO participation in brief, structured sessions that focus
solely on business leaders talent plans and progress.
Step #5: Inform Corporate HRs Agenda with Business Leaders PrioritiesIdentify
trends across business leaders stated challenges and integrate those into corporate
HRs agenda for the year.

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Chapter I:
Build Relevance of
What
arethe
therelevance
most effective
strategies
to improve
Improve
of talent
programs
before
the
relevance
talent
management
activities?
decreasing
theoftime
required
to complete
them.
How
HR create
discussion
Focuscan
business
leadera high-quality
involvement talent
in diagnosing
talent
that
is
relevant
to
business
priorities
and
engage
challenges and identifying solutions.
Engage business leaders in a business-focused and
integrated assessment of their talent challenges that
moves beyond one-off talent review sessions.
Chapter II:
talent decisions?
Chapter III:
activities?
accountability?

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Leverage Consumability to Drive Commitment

Consumability Also Impacts Effectiveness
Council research finds that improving the consumability of talent
management activities and programs drives business leader commitment by
11% and effectiveness by 5%. Supporting this finding, a substantial number
of Talent Champions reported their talent programs were easy to use.
What Is Consumability?
The term consumability refers to the ability of business leaders to
understand, access, and use talent solutions when needed. In particular,
it means helping business leaders prioritize their time spent on talent
management and creating programs that fit into leaders workflow, which
impact talent outcomes by 9% and 7%, respectively.
Consumability Is Not About Ease of Use but Quality of Execution
As shown by the bars on the right side of the chart, consumability is not
about only providing access to a Web-based solution or tool, promoting talent
programs, or providing training to enable utilization. While those may make
talent management easier to access, they do not make it easier to integrate it
into business leaders day-to-day work or help business leaders prioritize time
spent on talent management. Consumability is not about focusing on channel
and messagingit is primarily about enabling leaders to make higher-quality
talent decisions.
Apply Relevance and Consumability Differently
Improve Talent Management Outcomes Through Consumability

Integrate talent management solutions into leaders day-to-day work
and help them prioritize talent management activities to improve impact
Impact of Consumability Drivers on Talent Outcomes
Consumability Impacts
Relevance and Commitment
10%
Impact on Commitment 11%
9%
7%
Maximum
Impact on Talent 5%
Outcomes*
0%
Help Me
Prioritize Time
Spent on Talent
Management
Fit into My Dayto-Day Work
Impact on Effectiveness 5%
Consumability
Implication for HR:
<1%
1%
< 1%
1%
<1%
1%
Have Access
to Web-Based
Solutions and
Tools
HR Promotes
Talent
Management
Programs
HR Provides
Training to
Enable Utilization
Note: The maximum total impact on talent outcomes is calculated by comparing two statistical estimates: the predicted impact when
a talent program attribute scores high on a driver and the predicted impact when a talent program attribute scores low on a
driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
Talent Champions
Focus on enabling business leaders to

execute effectively on talent activities before
making talent management easier to do.

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Four Case Profiles on Improving Consumability

Two Consumability Mandates
Council research shows that two drivers have the greatest impact on talent
outcomes: Talent Programs Help Me Prioritize Time Spent on Talent
Management and Talent Programs Fit into My Day-To-Day Work. As a result,
there are two mandates HR must focus on to ensure they deliver consumable
talent programs:
HR Mandate #1: Provide business leaders with support that enables
better talent management decisions (rather than enables better process
execution).
HR Mandate #2: Deliver talent management support according to business
leaders needs (not HRs needs).
Four Case Profiles on Improving Consumability

Council research reveals examples of how to successfully provide business
leaders with support that enables better talent decisions through two examples
from Marriott International, Inc., and Standard Bank Group Ltd.Corporate
Services Division. In addition, this section includes a mini-case example
from Juniper Networks, Inc., that focuses on ensuring that talent programs
fit into business leaders day-to-day work. Finally, Lion Nathan Limited has a
broader focus on improving the consumability of talent management, which
incorporates both mandates.
Three Consumability Pitfalls

When designing talent management support and solutions, HR needs to avoid
three consumability pitfalls:
Support is too focused on process guidance and not enough on decision
guidance.
Solutions meet HRs requirements, not business leader needs.
Solution delivery is too standardized, not designed to enable customization
for unique needs.
Two Mandates to Improve Consumability

HR must respond to two key mandates to improve the consumability of talent management solutions
Consumability Mandates for HR
Talent Programs Help Me Prioritize

Time Spent on Talent Management.
Talent Programs Fit

into My Day-to-Day Work.
HR Mandate #1:
HR Mandate #2:
Provide business leaders with

support that enables better
talent management decisions
(rather than enables better
process execution).
Deliver talent
management support
according to business leaders
needs (not HRs needs).
HR Consumability Pitfalls
Talent management support
is overly focused on process
guidance as opposed to decision
guidance.
Talent management solutions are
designed to meet HR requirements,
not business leader needs.
Talent management solution
delivery is overly standardized.
Business-Integrated Talent Management Delivery
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Talent Programs Fail to Help with Prioritization

Two Key Challenges to Helping Leaders Prioritize Their Time
More than 85% of business leaders agree that talent programs do not help
them prioritize their time spent on talent management. This results from
two key challenges HR faces in guiding leaders on when and how to do
talent activities:
HR fails to communicate expectations about leaders role in talent
activities and outputs.
HR overly focuses guidance on process and compliance and not enough
on how to make better talent management decisions and talent outcomes.
54
Mandate #1: Provide Business Leaders with Support

That Enables Better Talent Management Decisions
Most leaders find that talent programs do not help
them prioritize time spent on talent management
resulting from two key challenges faced by HR when

guiding leaders on when and how to do which activities
Do Talent Programs Help You Prioritize Your Time?
Key Challenges
Business Leader Agreement
Agree
Disagree
Communicating ExpectationsHR does not clearly define and

communicate expectations for leaders role in talent activities and outputs.
14.7%
24.9%
Process Focus Versus Output FocusHR provides leaders with

process and program information but fails to guide leaders on how to
make better talent management decisions.
60.4%
Talent Review
? ? ? ?
Neutral
Focusing on Anything and Everything

Many of our talent programs have been less successful because we have asked
managers to do too many things without clear guidance. You need to be very specific
about what you expect leaders to do.
SVP, HR
Technology Company
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Human Capital Review Guide for Senior Executives

A guide to facilitate effective business leaderled HIPO and succession plans
Industry: Leisure
Revenue: US$13 Billion (2007)
Action
Marriott helps senior executives make the right
talent decisions by developing a guide that leads
them through critical questions and considerations
to ensure they have a high-quality talent plan and
actionable discussion during the human capital
review meeting.
Employees: 151,000
Headquarters: Bethesda, Md.
Situation
Though most organizations require senior
leaders to participate in HIPO and succession
management meetings, HR often fails to
provide sufficient decision-making tools that
will guarantee high-quality talent outcomes.
As a result, the conversation lacks value, senior
leaders remain unengaged in high-value talent
management activities, and the business suffers
from a poor talent pipeline.
Source: Marriott International, Inc.; Corporate Leadership Council research.

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Marriotts Human Capital Review

Guidance on Making Better HIPO and Succession Management Decisions
Like many organizations, Marriott has a human capital review during which
senior leaders discuss their high-potential talent and succession management
strategy. To ensure a high-quality discussion, Marriott creates a human
capital review guide for senior executives to ensure they are spending their
time preparing in the most effective way possible and, that because of their
preparation, they make the best talent decisions for the organization.
58
Practice in Context
Guiding Leaders to High-Quality Talent Reviews

Marriott provides business leaders with specific guidance in preparation for their
human capital review to ensure a rich dialogue and high-quality talent and succession plans from the session
Talent Review Challenge
Marriotts Human Capital Review Guidelines for Leaders

GLOBAL HUMAN RESOURCES
Human Capital Review: Discussion Guide

G L OSection
BAL H
M A NManagement
RESOURCES
I: UTalent
Talent Review Challenge

While leaders participate in talent and succession
reviews, they dont produce quality talent and
succession plans.
cont
d:
PREPARING
FOR THE
ACTUAL TALENT
Review
DISCUSSION
Human
Capital
Review:
Talent
Review
and
Succession
Career Section
Management
Preparation
Guide
FUTURE POTENTIAL
MINDSET: CAREER ASPIRATION
What do you see as this person s long-term career trajectory (examples

What have you
seen1and/or what conversations
have you
had 3
Step
Step 2
Step
Stepjobs
4 to which they might be able Step
5
of the senior-most
to ascend)?
Why do
with this person to discern the right rating?
you say this (data that supports this)?
Review
Refine
to
Review HCR For individuals
Submit completed HCR - Talent
If medium
or low,criteria
do you think this
can list
be influenced
Assuming
this person
has been designated
as a nexttolevel
candidate
identify based on agreed
upon
#
Talent Mgmt
selected,
complete
Review worksheet
HR Generalist
and how? Isand
it situational
individual
s current
HiPos), is he/she
defection
risk?
individuals in your the potential
of peopletotochange
be
& (as we are discussing
additional columns
a
Bepotential
prepared
to discuss
selected
personal circumstances.with
in Worksheet
the
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areHCR
the risk
factors andindividuals
how can they
be mitigated?
organization that
discussed at
Instructions and If so, what
in the
- Talent
at HCR
meeting
future?
meet it
Talent Review
HCR Discussion
Review worksheet
ORGANIZATIONAL
READINESS
Guide Section
I
MINDSET: COMPANY COMMITTMENT
Speak to the degree to which the effective functioning of this person s
What have you seen and/or what conversations have
department is or is not dependent upon this individual remaining in his/her
you had with this person to discern the right rating?
position?
If mediumReview
or low, do you think this
can be influencedReview HQ Human
Identify
Complete section
Be prepared to discuss potential
Existence/strength of systems and processes?
and how? Is positions
it situational based onpotential
individual s current Capital Review
III of HCR
successors for key positions at HCR
Succession
of team underneath thismtg.
individual?
the potential
to change inDiscussion
the
targeted for
successors
Guide Strength
Succession
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future?
succession
for key
Section II
Be prepared
to identify
Pool of Management
successors identified to replace
this person?
Whenpositions
management
positions
for discussion at next HCR meeting
will they beworksheet
ready?
NEXT POSITION READINESS
How to mitigate/remove key person dependencies? Time it
Why do you feel they are ready to move on to the next
would take to do so?
leadership level? Specific examples that support your rating
Are there projects on which this person is essential and from which he/
of Growth/Mastery/Turn?
Step 1 For Talent Review, review population criteria and identify individuals that meet that
review
list of positions
shecriteria.
cannotFor
be Succession
removed? Management,
Are there ways
to mitigate
this? to be discussed.
If not already
at Turn,
where
they trending?
How
Review, narrow
down
groupare
of people
identified in
Step 1 to 1-3 individuals (HiPos). For Succession Management, identify successors for targeted
Step 2 For Talent
will itthe
take
to get to
level? or not. When identifying these
POTENTIAL
NEXT
& TIMING
positions long
whether
jobthen
is housed
in the
yournext
organization
individuals, think
of POSITION
internal, external,
and diverse potential successors. It is
What
are your
theirown
next
position options and what is the potential timing?
appropriate and encouraged for you to identify potential successor names from both within and
outside
organization
G L O B A L
H U M A N
R E S O U R C E S
Human Capital Review
A Guide for Senior Executives
Step 3 Review HQ Human Capital Review Discussion Guide Sections I for Talent ReviewHave
and Section
for Succession
Management.
these IIideas
been discussed
with the individual?
Future
Potential
and Organizational
Step 4 For Talent Review, complete the following columns: Career Aspiration, Company Commitment,
What is this
person
s relocation
restrictions?Readiness columns in Career
section of the Human Capital Review worksheet for each associate identified. For Succession Management, complete the Potential Successor Pool section of the
Succession Management worksheet. Note: There may be sections that you can not fully complete. Please fill out what you can.
Business
Leader
Step 5 For Talent Review, submit completed Talent Review worksheet to your HR Generalists by agreed upon date. Be prepared to discuss the selected 1-3 individuals in
depth (i.e., strengths, development areas, career and organizational readiness) during HCR
meeting.
For Succession Management, be prepared to discuss potential
Page
4
successors for key positions at HCR meeting. You do NOT need to submit the Succession Management form in advance of the meeting. Be prepared to lead the
discussion on the position requirements and successors identified if the position is housed in your organization. If the position is not housed in your organization, you
should still be prepared to share your ideas on potential successors. Additionally, please come prepared to identify key entry-level VP and above positions within your
organization for discussion during the next HCR meeting.
Page 2
Focus Areas to Help Leaders

Prepare for the Human Capital Review
Talent ReviewHave I accurately identified the right people
as HIPOs?
Succession ManagementHave I fully evaluated the fit
and readiness of potential successors?
Organizational ReadinessHave I considered to what
extent the organization is ready to handle talent movers?
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Providing Guidance Beyond the Process

The Difference Between Marriotts Guide and a Nine-Box Matrix
Marriott creates a detailed guide for senior leaders to clarify role expectations
and ensure they are prepared for their human capital review. This guide is
different from typical HR guides for business leaders, such as a nine-box
matrix, for two reasons:
1. Marriotts guide sets clear expectations for leaders by focusing them
on both the what to do and the how to do it. Specifically, Marriott
thoroughly outlines the most critical questions leaders will need to address
to be fully prepared for the review. Business leaders focus on the right
talent-related issues and do not waste time on those that are irrelevant to
the review.
2. Marriott guides leaders on integrating HIPO talent management
and succession management decisions while also considering the
organizational implications of the movement of these talent groups.
60
Marriotts Human Capital Review Guide for Senior Executives
Beyond the Template and Process

Marriott helps leaders prepare for talent reviews by clarifying expectations and guiding
leaders to consider key questions critical to producing a high-quality succession and talent plan
Marriotts Human Capital Review Guidelines for Leaders

Section I: Talent Management
PREPARING FOR THE ACTUAL TALENT Review DISCUSSION cont d:
Human Capital Review: Talent Review and Succession

Career Section
Management Preparation Guide
FUTURE POTENTIAL
MINDSET: CAREER ASPIRATION

What do you
see4as this person s long-term career
trajectory
(examples
Step 1
Step 2
Step 3
Step
Step
5
What have you seen and/or what conversations have you had
of the senior-most jobs to which they might be able to ascend)? Why do
Review criteria
Refine list to
Review HCR -you say thisFor
individuals
(data
that supports this)? Submit completed HCR - Talent
medium
oridentify
low, do you think this
can be
influenced
and
agreed
upon
#
Talent Mgmt
selected,
complete
Review worksheet
HR Generalist
this
been designated
as E
a nextto
candidate
G LandIfhow?
O
B
Ain your
L
U
M A
N & RAssuming
Eadditional
Sperson
OhasU
R
Slevel
Isindividuals
it situational
based onH
individual
s current
of
people
to
be
Worksheet
columns
Be C
prepared
to discuss
selected
(as we are discussing HiPos), is he/she a potential defection risk?

Talent Review
to at
change in Instructions
the
organization that the potential
discussed
and
in the HCR - Talent
individuals at HCR meeting
are the
risk factors and how can they be mitigated?
HCR Discussion If so, what
Review
worksheet
Guide Section
I
ORGANIZATIONAL
READINESS
MINDSET: COMPANY COMMITTMENT
What have you seen and/or what conversations have
department is or is not dependent upon this individual remaining in his/her
you had with this person to discern the right rating?
position?
Review
Identify
Review HQ Human
Complete section
Be prepared to discuss potential
If medium or low, do you think this can be influenced
positions
potential
Capital Review
III of HCR of systems and
successors
Existence/strength
processes?for key positions at HCR
Succession
and how? Is it situational based on individual s current
targeted for
successors
Discussion Guide Strength
Succession
Management
of team underneath thismtg.
individual?
personal circumstances.with the potential to change in the
succession
for key
Section II
Management
Be prepared to identify positions
future?
Pool of worksheet
successors identified to replace
this person?
management
positions
for discussion
at nextWhen
HCR meeting
will they be ready?
How to mitigate/remove key person dependencies? Time it
would take to do so?
leadership level? Specific examples that support your rating
Are there
on which
this person
is list
essential
and to
from
which he/
Step 1 For
Talent Review, review population criteria and identify individuals that meet that criteria.
Forprojects
Succession
Management,
review
of positions
be discussed.
of Growth/Mastery/Turn?
she
cannot
be
removed?
Are
there
ways
to
mitigate
this?
Review, narrow
down
groupare
of people
identified in
Step 1 to 1-3 individuals (HiPos). For Succession Management, identify successors for targeted
Step 2 For Talent
If not already
at Turn,
where
they trending?
How
positions long
whether
jobthen
is housed
in the
yournext
organization
individuals, think of internal, external, and diverse potential successors. It is
will itthe
take
to get to
level? or not. When identifying these
POTENTIAL
NEXT POSITION & TIMING
appropriate and encouraged for you to identify potential successor names from both within and outside your own organization
What are their next position options and what is the potential timing?
future?
meet it
Talent Review
Human Capital Review
A Guide for Senior Executives
Step 3 Review HQ Human Capital Review Discussion Guide Sections I for Talent Review and Section II for Succession Management.
Have these ideas been discussed with the individual?
Step 4 For Talent Review, complete the following columns: Career Aspiration, Company Commitment, Future Potential and Organizational Readiness columns in Career
What
is this person
s relocation
restrictions?
Successor Pool section of the
section of the Human Capital Review worksheet for each associate identified. For Succession
Management,
complete
the Potential
Succession Management worksheet. Note: There may be sections that you can not fully complete. Please fill out what you can.
Talent Review
Succession Management
Step 5 For Talent Review, submit completed Talent Review worksheet to your HR Generalists by agreed upon date. Be prepared to discuss the selected 1-3 individuals in
depth (i.e., strengths, development areas, career and organizational readiness) during HCR meeting. For Succession Management, be prepared to discuss potential
successors for key positions at HCR meeting. You do NOT need to submit the Succession
Management
form in advance of the meeting. Be prepared to lead the
Page
4
discussion on the position requirements and successors identified if the position is housed in your organization. If the position is not housed in your organization, you
should still be prepared to share your ideas on potential successors. Additionally, please come prepared to identify key entry-level VP and above positions within your
organization for discussion during the next HCR meeting.
Page 2
Section I: Talent Management

Preparing for the Actual Talent Review Discussion
Career Section
FUTURE POTENTIAL
What do you see as this person s long-term career trajectory
(examples of the seniormost jobs to which they might be able to
ascend)? Why do you say this (data that supports this)?
MIND-SET: CAREER ASPIRATION

What have you seen and/or what conversations have you had
If medium or low, do you think this can be influenced and how?
Is it situational based on individual s current personal
circumstanceswith the potential to change in the future?
Assuming this person has been designated as a next-level candidate

(as we are discussing HiPos), is he or she a potential defection risk?
If so, what are the risk factors, and how can they be mitigated?
MIND-SET: COMPANY COMMITMENT

What have you seen and/or what conversations have you had with
this person to discern the right rating?
ORGANIZATIONAL READINESS
department is or is not dependent upon this individual remaining in his or her
position?
Existence/strength of systems and processes?
If medium or low, do you think this can be influenced and how?

Is it situational based on individual s current personal
circumstanceswith the potential to change in the future?
Key Differentiating
Feature
Enables Better Talent Decisions
The review guidelines move
beyond the traditional step-by-step
process guide and provide leaders
with the critical questions to guide
them to make the right talent
decisions.
Strength of team underneath this individual?

leadership level? Specific examples that support your rating of
growth/mastery/turn?
If not already at turn, where are they trending? How long will it
take then to get to the next level?
Pool of successors identified to replace this person? When will they

be ready?
How to mitigate key person dependencies? Time it would take to do so?
Are there projects on which this person is essential and from which
he or she cannot be removed? Are there ways to mitigate this?
POTENTIAL NEXT POSITION AND TIMING
What are their next position options, and what is the potential timing?
Have these ideas been discussed with the individual?
What is this person s relocation restrictions?
Page 4

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Helping Business Leaders Make Better Decisions

Better Guidance Results in Better Plans
Marriotts specific preparation guidance has resulted in three critical benefits
for the organization:
1. Business leaders have developed a common vocabulary about talent
at the organization, which has increased the richness of the dialogue.
2. Business leaders understand their responsibilities about talent
development better, especially in terms of the level of detail and the types
of information they should know about their talent pool.
3. Business leaders understand the organizations talent goals better and can
make talent decisions that are aligned with those objectives.
The result of these three benefits has been an improved quality of discussion
around talent and talent plans that are more thoroughly analyzed and better
aligned with business goals.
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Marriotts Human Capital Review Guide for Senior Executives (Continued)
From Guidance to High-Quality Discussion

Marriott provides leaders with specific guidance to ensure a rich dialogue and the creation of quality plans
Marriotts Human Capital Review
Key Questions for Business Leaders to Guide a
Quality Discussion About Successor Needs and Barriers
Capability Needs
What are the top three job requirements for your key job positions?
What is the ideal profile of a top candidate and the critical three candidate
must-have skills?
Is this a new, existing, or redesigned position?
Successor Strengths and Barriers
To what extent do the identified successors meet the ideal profile (strengths
and weaknesses)?
What is known or anticipated about the incumbents departure?
What are the successors relocation restrictions (where would this person move to,
where would they never move, what might change their mind)?
Successor Development Needs
When will the successor potentially be ready to assume this new position?
What development does the person need to be ready to take on in this new position?
Organizational Readiness
To what degree is the effective functioning of the successors department dependent
on his or her remaining in seat (how do we mitigate key person dependencies)?
EVP
BU #1
SVP of
BU #2
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SVP of HR
BU #1
EVP of
BU #3
Responsibilities of Business Leaders

in the Human Capital Review
Prepare succession and high-potential
talent review in advance of meeting.
Present and answer questions about
identified successors and HIPOs.
High-Potential Talent Plan

Business Unit A
Succession Plan
Business Unit A
Eliminating the Variance

in Quality of Talent Plans
The review guidelines help leaders to prepare for the
talent and succession discussions. They build a common
vocabulary for discussing talent and increase the
richness of the dialogue, enabling us to drive tangible
outcomes at the meetings.
Michele DiMartino
Senior Vice President,
Human Resources
Global Brand
Management
and Practice Leader
Organizational
Capability
63
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Marriott: Implementation Road Map

The Council recommends the following steps to begin implementing Marriotts practice
First Steps: Human Capital Review Guide for Senior Executives
Step #1: Clarify Expectations for Leaders Involvement in Talent Management

ProcessesCommunicate to business leaders the level of preparation and
participation that is expected through detailed talent management guides.
Step #2: Help Business Leaders Make Better Talent DecisionsGuide leaders
through the talent review and succession planning process with key questions about
their talent that will focus their understanding and help them make better decisions
about their people.
Step #3: Consider the Organizational Impact of Talent MovementsGuide leaders
to assess the impact on the broader organization of moving specific people before
finalizing their talent plans.
Step #4: Build Shared Knowledge of Talent and Joint Ownership of Succession
PlansLeverage cross-organizational human capital review sessions to ensure
knowledge sharing about high-potential talent and the creation of strong,
pressure-tested succession plans.

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Business Leader People Practice Proficiencies

Standard Bank Group Ltd.Corporate Services Division
A process and tool to clarify HR and line leaders unique roles and activities that most impact talent outcomes
Standard Bank Group Ltd.Corporate Services

Division
Action
HR provides line leaders with explicit guidance on
key talent management outcomes and the activities
to achieve those outcomes.
Industry: Financial Services

Revenue: ZAR13 Billion (2007)
Employees: 44,301
Headquarters: Johannesburg, South Africa
Situation
Confusion between HR and line leaders about
ownership of key talent management activities
often leads to poor talent management outcomes.
Organizations traditionally responded to the need
for more clarity and guidance by communicating
core talent management competencies. However,
these competency models often lack explicit
guidance for leaders on desired talent management
outcomes and activities to pursue.
Source: Standard Bank Group Ltd.Corporate Services Division; Corporate Leadership Council research.
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Connecting Outputs to Activities

Connecting Activities and Outputs Helps Business Leaders Make
Better Decisions
To address a lack of clarity about which activities drive which outcomes,
Standard Bank develops its People Practice Proficiency tool to provide
managers with explicit guidance. Standard Bank lists the 11 most critical
people management processes (e.g., workforce planning, recruiting) in both
business language and HR language at the top of the tool. Next, within each
process, Standard Bank describes the outputs (the standards leaders are
expected to execute against) and the activities leaders should do to achieve
those outputs.
The tools purpose is to connect abstract concepts and activities with defined
outcomes to help business leaders make the right decisions about where and
how to invest their time.
68
Case in Point
Explicit Guidance Beyond the Competency Model

Standard Bank creates a People Practice Proficiency Tool to provide
managers with more explicit guidance on key talent management outputs and activities
Standard Banks People Practice Proficiency Tool (P3)
People Practice Proficiency (P3)
People Management
Process (Business1
Language)
DESIGN THE
ORGANIZATION
PLAN STAFF
REQUIREMENTS
Workforce Planning
People
Management
DESIGN THE
People ManagementORGANIZATION
Organization (work)
Process
Process (HR
Design
(Business Focus)
Organization
OUTPUT
structure, job
(Standards
design and aligned
Managers are
People
are with(work)
business
Expected to Organization
Management
objectives
Deliver for
Design
Process (HR
Focus)
the Drivers
License)
OUTPUTS
(Standards
Leaders Are
Expected to
Deliver)
4
HIRE STAFF
MANAGE
PERFORMANCE
GIVE AND
RECEIVE
FEEDBACK
COACH
PERFORMANCE
Ability
Behavior
7 CREATE AND
MAINTAIN AN
EFFECTIVE
WORK
ENVIRONMENT
Recruiting
and Inducting
Performance
Management
Engagement and
Communication
Coaching
Conflict Management
Resource
requirements
(calendar)
Appointment
of staff
Onboarded and
inducted staff
Right People
at the Right Time
Understand
business cycles,
projects, and peaks
and troughs
Hiring
Organization
Understand
Set department
vacancies in
business strategy
organization
measures in line
structure.
with organization
strategy and
Review shortlist of
measures.
potential candidates
against hiring
requirement.
Organization
structure and job
design are aligned
with business
objectives.
Understand
ACTIVITIES
Strategy
(Activities
Understand
APPROACH
Leaders
Should
(Aligned
with the
InterpretStrategy
Do to Outputs
AchieveAbove, organization
Interpret
the Activities business
organization
the Outputs)
strategy
Managers Should and apply
business
it tostrategy
Do to Achieve the
and
apply it to
own
business
Outputs )
own, business
environment.
environment
Explicitly Communicate Outputs and Activities

(Not Just Competencies)
Standard Bank moves beyond generic competency
models and provides leaders with explicit guidance on key
outcomes and the activities to achieve those outcomes
within strategic talent management areas.
Organization
Open
communication
Clearly defined
channels between
outputs and
staff and
measure, aligned
management.
to business and
organization
Staff perceive
strategy
that they receive
meaningful
Job and Person
feedback.
Clearly defined
Staff perceive that
job outputs and
their suggestions,
measures, aligned
opinions, and
to business outputs
concerns are heard
and action is taken.
Self-EQ
Understand selfpersonal mastery
and self-awareness.
Be aware of own
impact on others.
RECOGNIZE
AND REWARD
SUPERIOR
PERFORMANCE
Recognition
and Reward
MAKE PAY
DECISIONS
10
MANAGE STAFF
CAPACITY
(TODAY AND
TOMORROW)
11
DEVELOP STAFF
SKILLS AND
COMPETENCIES
Remuneration
Succession and Talent
Training and
Development
Enable staff to
perform effectively
in job role.
Healthy work
environment/
climate
Ability
Contract with
individual
around individual
improvement/
stretch goals.
Change
Informal
Defining Reward
Principles
Embrace the
Recognize behaviors
concept of change
that positively
Assess prevailing
understand how to
impact the bank/
market conditions.
help staff deal with
BU/department/
Understand BU
change.
team.
remuneration
approach.
Senior Manager Versus

Mid-Level Manager
Focus Areas
Superior
performance is
recognized in a
consistent fashion.
Staff perceive that
recognition is fair
and appropriate.
Fair pay for job

and skills bought
relative to other
jobs and market
Make fair
decisions around
remuneration,
following reward
philosophies and
guidelines.
Key positions are

identified.
Reserve bench is
identified.
High-potential
performers are
identified and
undergoing training
to build future
skills.
Staff have a personal

development plan
aligned to the skill
requirements of the
business.
Training
interventions have a
measurable return.
Succession
Define the key
outputs of the BU/
department/team.
Assess potential
and current skills
and competencies
of staff.
Define
Define skills and
competence
requirements
per job required
to deliver on job
outputs.
Focused Guidance
Based on 360 feedback, leaders are guided toward the
outputs and activities where they underperform.
Name:
Joe Smith, Improvement
VP OperationsAreas
360
Performance
Senior Manager Focus Areas

(Strategic Activities)
Mid-Level Manager Focus Areas
(Day-to-Day Activities)
Name:
Smith,
VPReceive
Operations
Focus Joe
#1: Give
and
Feedback
FocusArea
#2: #1:
Succession
Focus
Give and Planning
Receive Feedback
Focus Area #2: Succession Planning
Source: Standard Bank Group Ltd.Corporate Services Division; Corporate Leadership Council research.
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Talent Programs Fail to Integrate with Leaders Workflow

A Matter of Timing
Nearly 88% of business leaders agree that talent programs do not fit into their
workflow. This reflects two key challenges HR faces in designing, developing,
and deploying talent programs:
Talent programs timing conflicts with other organization-wide initiatives.
Programs and resources are not available when business leaders most
need them.
70
Mandate #2: Deliver Talent Management

Support According to Business Leaders Needs
Most leaders do not find that
talent programs fit into their workflow
resulting from two key challenges faced by HR in

designing, developing, and deploying talent programs
Do Talent Programs Fit into Your Workflow?
Key Challenges
Business Leader Agreement
Agree
Disagree
Conflict with Business OperationsDeployment of talent

programs conflicts with key business events and priorities.
January
21.6%
12.4%
Sales Peak
Timed to Immediate NeedsTalent programs and resources are

not delivered to business leaders at the times they are most needed.
66.0%
Neutral
Too Busy and Too Late

It seems like new HR programs are always being launched during my peak sales timeand
I have a hard time figuring out how to use them when that happens.
Vice President
Sales
Consumer Products Company

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Talent Management Product Creation Guidelines

A project management framework and guidelines to ensure HR engages stakeholders in creating and delivering talent management solutions
that meet business needs
Juniper Networks
Industry: Electronics; Industrial Manufacturing
Action
Juniper Networks introduces a business-oriented
project management framework to the diagnosis,
creation, and delivery of talent management
programs.
Revenue: US$2.8 Billion (2007)

Employees: 5,879
Headquarters: Sunnyvale, Calif.
Situation
HR often focuses on the creation of talent
management programs and neglects to align the
programs with business needs and effectively
deliver the program for maximum impact.
Source: Juniper Networks, Inc.; CLC Talent Management Effectiveness Survey; Corporate Leadership Council research.
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Delivering Talent Programs That Meet Business Needs

Getting the Timing Right
Juniper Networks develops a product creation framework to ensure the HR
team is designing, developing, and deploying the right talent management
programs at the right time. The framework uses key questions to guide HR on
engaging stakeholders throughout the entire product creation process. Within
each stage of the process, HR considers how the talent management product
will fit into business leaders workflow, specifically any possible scheduling
conflicts as well as any potential synergies from other work leaders may be
focused on.
Improving Relevance
Juniper Networks framework also effectively addresses the challenge posed
in Chapter I: Build Relevance of Talent Management Programs. Council
research shows that organizations typically only spend about 10% of
their time on product design and 10% deploying it, while they spend the
majority of their time on developing the program. The questions in Juniper
Networks framework ensure that HR spends more time on these very critical
components and develops products that are relevant to business leaders needs
and available when they need it.
For a full profile of Juniper Networks Talent Management Product Creation
Guidelines, please visit the Councils Web site: www.clc.executiveboard.com.
Case in Point
Creating Relevant Talent Programs

That Align with Business Leaders Workflow
Juniper Networks introduces a product creation framework to guide HRs support of business leaders workflow needs
Talent Management 3D Framework and Diagnostic Questions
HR Lead
Working in 3D
Line/Functional
Stakeholders
Design
PROJECT CHARTER
BUSINESS CASE
REQUIREMENTS
What is the business problem

Working
in 3D
we want to solve (current
Develop
SOLUTION
How does this fit/not fit with

existing work?
What will it take to get from
current state to future state
(gap)?
Scope?
Schedule?
Resources (dollars and
people)?
DEPLOYMENT
PLAN
Whos the (A)? (R)?
Project
and
stakeholder
How has deployment criteria
(RASCI)?
beenroles
addressed?
Are
adding
something or
Fitwe
with
competing
building
on portfolio?
business
activities?
How will changes
to the
High business
original design
be managed?
relevance?
What will Scalable?
be done to mitigate
risks/undesired
results?
Globally
applicable?
What needs
to get and/or
Quick-wins
communicated
to
who and
lasting impact?
when? Low resource
Are all stakeholders
intensity? aware?
On-board?
Engaged?
Easy
to deploy?
Are deployment plan
components complete:
Training Plan?
P roprietary and CoPlan?
nfidential
Communication
Change Management Plan?
Does plan have stakeholder
input and approval?
Are rapid response/
contingency plans available for
unanticipated impacts?
Have responsibilities and roles
been confirmed?
state)?
Is this the right problem?
What is the root cause?
What has been done and what
were the results?
What is the impact of the
DOCUMENTATION
problem?
What are the options?
What
Whatdocumentation
will they cost? is needed
toWho
adequately
and
needs tosupport
be involved
(stakeholdersthe
- HR / non-HR)?
communicate
Are stakeholders requesting
solution/intervention?
Have
stakeholder
issues
been
change?
If not, what
is appetite
resolved
and documented?
for change?
Is there
Issue log
What
doesan
success
look like to
(resolution
audit(future
trail)?state)?
the
stakeholders
How
hasthe
stakeholder
How
does
business benefit
LESSONS
LEARNED
from
solution?
alignment
been confirmed?
Is
the went
deployment
plan
What
roadblocks
mightneeds
exist to
What
well? What
complete
with
approvals
the
problem?
tosolving
be reinforced?
How are you
secured
from
those
celebrating accomplishments?
responsible
for deployment?
work? Who is
What still needs
What
exit
doing is
(ordevelop
needs to
becriteria
doing)
(go/no-go
for
deployment)?
what differently?
Copyright Approvals?
7 Juniper Networks, Inc.
lessons learned (and
How200can
Contingency
for no-go?
action items)
be used
related
to continually improve
processes and increase
effectiveness and efficiency as
the business scales?
Build a solution that meets

Working
in 3D
requirements by obtaining
Deploy
DELIVER
Are stakeholders engaged?
Are responsibilities and roles
clear to everyone involved?
Is executive/leader response
sufficient?
Is necessary communication
reaching intended audience?
Is solution/intervention well
received? Are adjustments to
deployment plan needed?
Are tools, resources, and
training working?
Are modifications needed?
Are additional components
needed? Enhancements?
If so, is rapid
design/development cycle
pp p
appropriate?
Are recipients adopting
changes to processes/tasks?
Adjustments needed?
How are issues being tracked?
Is resolution rapid?
Copyright 2007 Juniper Networks, Inc.
necessary
inputs/components/data
Consider phased deployment
for quick-wins
Risks?
Change readiness?
IMPACT
IsASSESS
the solution/intervention
appropriately tested and/or
validated
to all stakeholders
How has the
satisfaction?
intervention/solution resolved
solution/intervention
be
theCan
original
business problem?
tested
with stakeholders
Have
stakeholder
throughout development?
needs/concerns
been
If not, have input/feedback
addressed?
been agreed on?
Arepoints
KPIs documented?
How
theexist
solution
be
Whatcan
plans
for ongoing
standardized?
monitoring/
Is
process in of
place
to
assessment
impacts?
resolve/escalate
stakeholder
Will KPIs be tracked
over
concerns?
time? Do they know what
theHow
process
and is?
where will they be
retained?
Communicated?
Have unintended and
to
Copyrighundesired
t 2007 Juniperimpacts
Networks, Inoccurred
c.
the business? Are they being
addressed?
What needs to be
communicated about the
impacts that have occurred?
P ropr ietary and Confidential
P ropr ietary and Confidential
w w w.juniper.net
w w w.juniper.net
Is development/deployment
timing aligned with resource
availability and business
calendar?
What are the connections to
existing technology
g
systems?
How will the
intervention/solution impact the
business? Change behavior?
How will the
intervention/solution be
developed?
Functional/technical specs?
How will identified risks be
addressed?
Does a workplan exist that ties
the 3Ds together with change
and learning?
How will we know weve
succeeded KPIs (Key
Performance Indicators)?
Is deployment criteria
addressed?
What is design exit criteria
(go/no-go for development)?
w w w.juniper.net
Junipers talent management

product framework uses key
questions to guide HR to design
and develop business-relevant
talent programs that align with
leaders workflow
Asking the Right Questions
and guides HR on how

to effectively deploy talent
programs for maximum
business impact.
The whole framework takes the form of

questions. Its not about fi lling out templates. Its
about asking the right questions and engaging
stakeholders in dialogue that will continually
reinforce focus on business needs.
Mark Davidson
Global HR Program
Deployment
Source: Juniper Networks, Inc.; Corporate Leadership Council research.
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Business-Integrated Talent Management Delivery

Lion Nathan Limited
A marketing strategy applied to HR to improve the relevance and consumability of talent management solutions
Lion Nathan Limited
Industry: Beverages
Revenue: AUS2 Billion
Employees: 3,000
Headquarters: Sydney, Australia
Situation
Many HR functions do not consider the
applicability of HR products and processes to
leaders work, and therefore leaders fail to consume
those processes and products effectively to capture
the full value.
Action
Lion Nathans HR team adapts a marketing
framework to increase the consumability and
relevance of HR solutions through easy-toconsume formats, coordination with business
operations, and using business leaders to promote
and deliver talent management solutions.
Key Steps
Step #1: Provide Talent Management Solutions
in Easy-to-Consume Formats.
Step #2: Coordinate Talent Management
Processes with Business Operations.
Step #3: Leverage Diverse Business
Stakeholders to Deliver Talent Management
Solutions.
Results
Twenty-one percent improvement on HR
feedback survey
Seven percent improvement on employee
engagement scores in one year
Ranked ninth on Fortunes Top Companies
for Leaders in the AsiaPacific Region
Source: Lion Nathan Limited; Corporate Leadership Council research.

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Ensuring Customer-Driven HR Solutions

The Three Ps to Increase Consumability
Lion Nathan adapts components of the Four Ps marketing framework to HR,
developing their own Three Ps to ensure HR develops customer-focused talent
management solutions. Lion Nathans Three Ps of HR include the following:
Product Design: Provide talent management solutions in
easy-to-consume formats.
Product Placement: Coordinate talent management process with
business operations.
Product Promotion: Leverage diverse business stakeholders to deliver
talent management solutions.
78
Practice in Context
Leaders as Talent Management Consumers

Lion Nathans HR team adapts a customer-driven framework from Lion Nathans
marketing team to increase the consumability and relevance of HR solutions to leaders
Lion Nathans Three Ps
Product Design
ObjectiveDesign
products that enable
customers to capture value
and repeat purchase.
HRs Adaptation of The Three Ps

Step #1: Provide Talent
Management Solutions in
Easy-to-Consume Formats.
Development Review
Why
A key driver of people engagement - effective commitment to

peoples careers is an effective people investment
To ensure a strong talent pipeline for leadership roles at all levels
When
Via regular 1:1s every 4-6 weeks (informally)

March June annually, formal Development and Bench Review &
Planning process
What
How
Who
One-on-Ones
3 Touchpoints
Why
To review progress against accountabilities, behaviours, bonus
Assessment by individual, leader and others on BTAV
Development Plan
objectives and development goals
Coaching and feedback on BTAV, career and personal goals and BTAV
Opportunity to provide regular feedback to your team member(s)
aspirations
Best Imaginables
No surprises in Development and Achievement reviews
Formal Development Plans and activities for team member(s)
Bench talent identified for leadership roles
When
Every 4-6 weeks
Why
Establishes purpose where does anBTAV
individual
s
Model s role
Development
Review
fit and how
it contribute
the business
strategy
Practical DR
Guidelines
Gather feedback on 10 Behaviours
that does
add Value
for your to
Team
Myan
Planet
Having meaningful goals contributes to
individuals
members s
PeopleDirect Workshops
Complete assessment of yourwell
Team
members on the BTAV
Business Plan/Strategy
being
Hold 1:1 discussion with Team members on BTAV, career and Calibration GuidelinesOrganizational Structure
Best Imaginables
personal goals and aspirations
at members
the start of each new financial year based on One-on-Ones
WhenPlan forSet
Prepare Development
Team
What Review
Accountabilities
(Achievement
Regular,
uninterrupted
and plan
informal discussion
Bench
& Planning
Annual
Achievement and
business
Focus
on results
(what)
andfor
behaviours
against Achievement Goals)
Identify and
agree
on bench
talent
leadership(how)
positions
Reviewed
throughout
the year (with
to check currency and Bonus Review
goals,
Development
Goals and Bonus Goals
10 Behaviours that add Value
Development
Plans
as basis for
recommendation)
progress
Opportunity
foraction
Leaders
Team
Identify gaps
and develop
plansand
to fill
gaps Members to understand and Development Plan
agreePlanning
on monthly
key priorities
90 Day
Development
Breaks
the business plan down into individual roles
toplan
What
Opportunity
for Leaders
andsmart
Team goals
member(s)
to provide
feedback
Finalise Development
Plans
and
activities
establish
and focus
for the
year
feedback
to inassist
in Development
Coach andRegular
follow up with
Team
members
Builds
the Behaviors
That AddReview
Value and
(BTAV) and
Achievement Review
Leaders and Team membershow they will help individuals to be successful
PeopleDirect team
1:1 template on My Planet
How
Leader and Team members hold a 1:1 discussion
SMART
How notes
Using
SMARTinto
goal
way
communicate
LSI
Discussion
to be entered
Mysetting
Planet
byclear
Leader
andtoTeam
what is expected, by when, and what success 10
willBehaviours
Achievement
Principles
members
that add Value
Achievement Goals
My Planet
10 Behaviors That Add
Value
One-on-Ones
look like (SMART)
Set
up in My Planet
Leaders and Team
members
Who
Who
Opportunity for leaders and individuals to understand

and agree on what/how outcomes for the year
PeopleDirect
Business Partner
2
ObjectivePlace
products where
propensity to
consume is highest.
Product Promotion
ObjectiveUse trusted
sources to communicate
product value.
Step #2: Coordinate Talent

Management Process with Business
Operations.
JAN.
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG. SEPT.
OCT.
NOV.
Peak Wine
Business Time
DEC.
Peak Sales
Time
Peak Sales Time
People Processes Calendar: FY 08
Product Placement
Peak Finance
Time
Peak Finance
Time
Development Reviews
(Timing based on function or business)
Remuneration Review
(Timing based on
function or business)
Achievement and Bonus Review
(Timing based on
Set Accountabilities
and Bonus Objectives
(Timing based on
Leader one-on-ones with direct reports throughout the year every four to six weeks
People
Pulse
People and
Customer
Engagement
Survey
People
Pulse
Step #3: Leverage Diverse Business

Stakeholders to Deliver Talent
Management Solutions.

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Improve Utilization and Impact of Talent Management Products

Consumable Products Enable Better Talent Decisions
Lion Nathan provides tools, such as quick reference cards, that help business
leaders make better talent decisions and are designed to be easy to consume.
Lion Nathan does this by succinctly communicating the value of the activity
to senior leaders and the critical information they need to know to do it: why,
when, what, how, and who. By making this information available to business
leaders on quick reference cards, Lion Nathan ensures business leaders are able
to easily access it when they need it.
One Stop Shop for Talent Resources

Lion Nathan streamlines and standardizes talent management resources for
leaders into a one-stop-shop portal to ensure they are easily accessible for
leaders emerging needs. Lion Nathan spends additional time on the content
on this site to ensure it is on target for business leaders needs and that it lacks
HR jargon.
Ongoing Customer Feedback

Lion Nathan solicits and incorporates feedback from their internal
customersbusiness leadersabout the consumability and impact of their
talent management products and processes. The survey ensures that talent
programs remain current and relevant to business leaders needs. The entire
survey is available online at www.clc.executiveboard.com.
Step #1: Provide Talent Management Solutions in Easy-to-Consume Formats

Product
Design
Overcoming Barriers to Consumability
Lion Nathan provides HR tools and products to leaders that

communicate key information in easily digestible formats
Talent Management Reference Cards
and incorporates leaders

feedback to improve utilization and impact
1
Solicit and incorporate feedback from leaders to
assess for ongoing relevance, effectiveness, and
ease of use.
Development Review
Why
A key driver of people engagement - effective commitment to

peoples careers is an effective people investment
To ensure a strong talent pipeline for leadership roles at all levels
When
Via regular 1:1s every 4-6 weeks (informally)

March June annually, formal Development and Bench Review &
Planning process
What
How
Who
Consumability Feedback Survey
One-on-Ones
3 Touchpoints
HR Feedback Survey for Leaders

As part of our ongoing commitment to simplify and improve the value
and outcomes of our practices, we would appreciate if you would take
five minutes to provide some feedback.
1. Our People Process System enabled me to deliver quality Achievement
and Bonus review outcomes.
Why
To review progress against accountabilities, behaviours, bonus
Assessment by individual, leader and others on BTAV
Development Plan
objectives and development goals
Coaching and feedback on BTAV, career and personal goals and BTAV
Opportunity to provide regular feedback to your team member(s)
aspirations
Best Imaginables
No surprises in Development and Achievement reviews
Formal Development Plans and activities for team member(s)
Bench talent identified for leadership roles
When
Every 4-6 weeks
Why
Establishes purpose where does anBTAV
individual
s
Model s role
Development
Review
fit and how
it contribute
the business
strategy
Practical DR
Guidelines
Gather feedback on 10 Behaviours
that does
add Value
for your to
Team
My an
Planet
Having meaningful goals contributes to
individuals
members s
PeopleDirect
Workshops
Complete assessment of yourwell
Team
members on the BTAV
Business Plan/Strategy
being
Hold 1:1 discussion with Team members on BTAV, career and Calibration GuidelinesOrganizational Structure
Best Imaginables
personal goals and aspirations
WhenPlan forSet
at members
the start of each new financial year based on One-on-Ones
Prepare Development
Team
What Review
Regular,
uninterrupted
and plan
informal discussion
Accountabilities
(Achievement
Bench
& Planning
Annual
Achievement and
business
Focus
on results
(what)
andfor
behaviours
against Achievement Goals)
Identify and
agree
on bench
talent
leadership(how)
positions
Reviewed throughout
the year (with
to check currency and Bonus Review
goals,
Development
Goals
and
Bonus
Goals
10
Behaviours
that
add Value
Development Plans as basis for
recommendation)
progress
Opportunity
foraction
Leaders
Team
Identify gaps
and develop
plansand
to fill
gaps Members to understand and Development Plan
agreePlanning
on monthly
key priorities
90 Day
Development
Breaks
the business plan down into individual roles
toplan
What
Opportunity
for Leaders
andsmart
Team goals
member(s)
to provide
feedback
Finalise Development
Plans
and
activities
establish
and focus
for the
year
feedback
to inassist
in Development
Coach andRegular
follow up with
Team
members
Builds
the Behaviors
That AddReview
Value and
(BTAV) and
Achievement Review
Leaders and Team membershow they will help individuals to be successful
PeopleDirect team
How
1:1 template on My Planet
Leader and Team members hold a 1:1 discussion
SMART
How notes
Using
SMARTinto
goal
way
communicate
LSI
Discussion
to be entered
Mysetting
Planet
byclear
Leader
andtoTeam
Achievement
Principles
what is expected, by when, and what success 10
willBehaviours
members
that add Value
Achievement Goals
look like (SMART)
Who
Set
up in My Planet
Leaders and Team
members
Who
Opportunity for leaders and individuals to understand

and agree on what/how outcomes for the year
2. Our People Process System is easy to use.
3. Our Achievement and Bonus Review process encourages me to do my

best work.
4. I received regular and clear communication about what was required

for Achievement and Bonus Review.
5. Achievement and Bonus Review was simple and effective for me

this year.
Streamline processes and ensure that information

is accessible to leaders in business language and in
easy-to-use formats.
Lion Nathans Online Talent
Management One-Stop-Shop Portal
My Planet
10 Behaviors That Add
Value
One-on-Ones
My Planet
PeopleDirect
Business Partner
Information for Leaders

Introduction to New System
Achievement Plans
Managing Your Goals for the Year

Capturing One-on-Ones
Managing Your Learning
Renumeration Planning for Leaders
Getting Around, 360 Review Feedback,
Bonus Goals, Web Surveys, and More!
Lion Nathan provides guidance and tools for leaders on the

key strategic and day-to-day talent management activities to
improve the quality of leaders talent management decisions.
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Consider Business Leaders Schedules

Product Placement: Talent Programs Available When Customers Can
Use Them
To improve ease of workflow integration, Lion Nathans HR team considers
business leaders peak business times when determining the schedule for talent
management activities. In addition, Lion Nathan identifies existing events on
business leaders calendars where HR can embed relevant talent management
messages and activities. Finally, Lion Nathan distributes talent management
calendars widely to ensure that business leaders have advance notice of when
talent management activities will occur and plan accordingly.
82
Step #2: Coordinate Talent Management Processes with Business Operations

Product
Placement
Flexible and Timely

Lion Nathan aligns the HR calendar with business leaders calendars to
ensure flexible and timely delivery of relevant talent management services
Lion Nathans People Process Calendar
Lion Nathans Steps to

Embed Talent Management
into Leaders Business Processes:
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG. SEPT.
OCT.
NOV.
Peak Wine
Business Time
DEC.
Peak Sales
Time
Peak Sales Time
People Processes Calendar: FY 08
Embed Talent Management into

Existing Schedules and Business
EventsObtain a calendar of events
for each business and function to identify
events where HR can embed key talent
management information and activities.
Understand Business Calendar
Meet with business leaders prior to each
year to understand key business events.
Avoid Peak Business PeriodsBlock
out peak periods for each business unit
and function to ensure talent management
processes are not scheduled during busiest
times.
Provide Advanced NoticeDistribute
a calendar of people processes to all
leaders to provide advanced notice of
programs and launches.
JAN.
Peak Finance
Time
Peak Finance
Time
Development Reviews
(Timing based on function or business)
Remuneration Review
(Timing based on
Building in Flexibility
Lion Nathan ensures that
people processes do not
conflict with peak business
times by building flexibility
into the timing of people
processes based on each
business or function.
Achievement and Bonus Review

(Timing based on
Set Accountabilities
and Bonus Objectives
(Timing based on
Leader one-on-ones with direct reports throughout the year every four to six weeks
People
Pulse
People and
Customer
Engagement
Survey
People
Pulse
Embedding in the Business Calendar

You will always get pushback, and theres never a good time, but weve designed the calendar to be sensitive to the times that our internal customers are busiest. We also get
a copy of the business calendar to find already scheduled events in the business where we can integrate our messages and processes.
Tracy Keevers
Director, Leadership Capability Team
Lion Nathan Limited
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Engage Ambassadors and Resistors

Products Promoted by Customers
Lion Nathan has developed a unique approach to product promotion: using
both ends of the line client spectrumsupporters and skepticswhen
developing and rolling out talent management programs. The supporters
talent management ambassadorspromote talent management activities,
which is a much more powerful method than HR pushing talent programs.
Lion Nathan also engages talent resistors, those who have expressed
dissatisfaction or rejected talent management practices before. Lion Nathan
solicits feedback from the resistors frequently and engages them in designing
new programs. By engaging their toughest customers, Lion Nathans HR team
ensures that their product is much better designed and delivered.
84
Step #3: Leverage Diverse Business Stakeholders to Deliver Talent Management Solutions
Product
Promotion
Defining Value Through Key Customers
Lion Nathan leverages talent ambassadors to promote

key talent management activities to other leaders
and engages talent resistors in providing

feedback on program design to obtain early buy-in
Talent Management Ambassador Profile
Talent Management Resistor Profile
Profile: Influential leaders director level and above who

demonstrate high talent mind-set through the following:
Profile: Senior leaders who have expressed

dissatisfaction or rejected talent management practices
evidenced through the following:
Complaining about talent management processes
to HRBPs
Deep involvement in key people decisions

Personally driving talent review processes
throughout the organization
Talent
Management
Ambassador
Holding direct reports accountable for

best practice talent management behaviors
Modeling great talent management to instill talent
mind-set in others
HRs Use of Talent Ambassadors
Communicate talent management information
to other leaders.
Talent
Management
Resistor
Missing or late on deadlines for talent management

activities
Vocal dissenters in talent-focused leader meetings
HR Practices to Combat Resistance
Understand and address points of resistance.
Obtain frequent feedback on HR processes.
Involve in HR program design.
Provide feedback to HR programs.

Participate in campaigns and other promotional
activities for talent management.
Lion Nathan asks talent management

ambassadors to promote key talent
management activities to other leaders
through media campaigns and training.
HR Program
Design Session
Lion Nathan builds early buy-in for HR

programs by engaging resistors to help shape
program design.

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Better Delivery, Better Results

Improved Line Satisfaction
As a result of this practice, Lion Nathan has seen improvements in line
satisfaction with the ease and effectiveness of talent management processes and
employee engagement scores, which has led to recognition as a top company
for leaders in the AsiaPacific region.
86
Results
Improved Consumability and Impact

Lion Nathans leaders report
improvements in talent management delivery
which has in turn engaged leaders in

improving their talent management effectiveness
Rating of Simple and Effective Talent Management Processes
Improvement in Employee Engagement Scores
Lion Nathans HR Feedback Survey
Lion Nathans Employee Engagement Survey
80%
80%
61%
Percentage
of Leaders 40%
Rating Simple
and Effective
75%
Percentage of
Employees in
the Highest 70%
Engagement
Zone
21%
40%
0%
7%
68%
60%
2005
2007
2006
2007
and Lion Nathan has been recognized as one of the top companies for leaders in the AsiaPacific region
Top Leadership Companies in AsiaPacific Region
Fortune Magazine 2007 List, Hewitt Associates and The RBL Group
2007 Top Companies
for Leaders in AsiaPacific
9. Lion Nathan Limited
Lion Nathan is one of two Australian

companies on the list of top 10 leadership
companies in the AsiaPacific region and
ranked number two for leadership in the
Australia/New Zealand region.
10. DLA Phillips Fox

Source: Hewitt Associates and The RBL Group, The Top Companies for Leaders 2007, Fortune
Magazine, 1 October 2007; Lion Nathan Limited; Corporate Leadership Council research.
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Practice Q&A with Tracy Keevers, Director, Leadership

Capability Team and Bob Barbour, Chief Human Resources Officer
Commentary and Implementation Tips from Lion Nathan Limited
1. What is the key to making this a successful practice?

The key is to have the right people on the HR team with the right skills. Over the past four years, we have improved capabilities of our HR team
around learning and development, engagement, business acumen, and business partnering, which has enabled us to respond more flexibly to the
needs of our leaders and the business.
2. If you could only do one thing, what would it be (that is, whats the most important aspect of this practice)?
The most important part of this practice is understanding the business strategy and operationalizing what that means for leaders on a day-to-day
basis. In effect, HR must translate all of the business and cultural aspirations into day-to-day hands-on tools. We are continually answering the
question of how does this help me, my people, and my customers?
One of the hardest parts about implementing this practice was to engage our own people on the HR team to think differently about our people
processes and their relationship to our business engagement and cultural aspirations. Our HR business partners are a critical conduit to senior
leaders in the business, and we needed them to be passionate advocates of the usefulness and importance of our processes to our business and
our customers.
Lion Nathan: Implementation Road Map

The Council recommends the following steps to begin implementing Lion Nathans practice
First Steps: Business-Integrated Talent Management Delivery
Step #1: Refocus the HR Team on Creating Consumable HR ProductsFocus the

HR team on developing and delivering HR products that are easy to understand and
written in business language and communicate benefits through simple, streamlined
frameworks.
Step #2: Solicit Feedback on HR ProductsObtain feedback from business leaders
on current and redesigned HR products about their ongoing relevance, effectiveness,
and ease of use.
Step #3: Align HR Activities with Business Leaders CalendarsIdentify peak
business times and build flexibility into the timing of people processes for each
business or function.
Step #4: Leverage Talent Ambassadors to Promote Talent ActivitiesIdentify
influential leaders, director level and above, who are committed to people
development and will support talent management campaigns and activities.
Step #5: Engage Talent ResistorsInvolve business leaders who have previously
expressed dissatisfaction or rejected talent management practices in designing HR
programs to gain buy-in.

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Chapter I:
Build Relevance of
Improve
of talent
programs
What arethetherelevance
most effective
strategies
to before
improve
decreasing
the oftime
required
to complete
them.
the relevance
talent
management
activities?
How can
HR create
high-quality in
talent
discussion
Focus
business
leadera involvement
diagnosing
talent
that is relevant
to businesssolutions.
priorities and engage
challenges
and identifying
Engage business leaders in a business-focused and
integrated assessment of their talent challenges that
moves beyond one-off talent review sessions.
Chapter II:
Improve
talentmake
management
How canthe
HRconsumability
help business ofleaders
better by:
- Helping
leaders make better talent management
talent
decisions?
decisions;
How
can HR and
integrate talent management
- Integrating
talent programs
business
solutions
into business
leadersinto
workfl
ow? leaders
day-to-day work.
Chapter III:
activities?
accountability?

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Organizations Attempt to Improve Talent

Outcomes by Holding Business Leaders Accountable
Typical Accountability Strategies Fail
Conventional HR wisdom suggests that business leaders are not committed
to talent management because they are not held accountable through
performance reviews and compensation incentives. As a result, HR typically
increases business leaders accountability for talent management through
talent-related MBOs. However, Council research reveals that even when a
substantial portion of the business leaders review is tied to talent metrics, it
does not necessarily translate into improved outcomes. The Council does not
suggest abandoning accountability entirely but rather that a new approach to
accountability is required.
92
The Accountability Challenge
The Challenge of Accountability Strategies

HR can increase accountability for talent outcomes but often fails to achieve desired results
Accountability Strategies
Common Challenge: Business leaders

do not engage in talent management
because they are not held accountable for it.
Our leaders arent committed to talent

management because the connection to the
merit review process and their compensation
is weak, so theres no personal pain point for
them.
Common Solution: Increase

accountability for talent management.
Result: General accountability for talent

management does not increase outcomes.
Percentage of Business Leaders

with Talent-Related MBO
Percentage of Performance
Review Based on Talent Outcomes
Dont Have TalentRelated MBO

5%
Manufacturing Company
95%
Have TalentRelated MBO
40%
34%
29%
20%
0%
Talent
Champions
Talent
Rejecters
Talent Champions only have a slightly

larger amount of their performance
review based on talent outcomes
compared to talent rejecters.
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Achieve Talent Outcomes with Soft and Hard Pressure

Pair Hard and Soft Accountability
Council research shows that if hard accountability is used exclusively, then
leaders are likely to only achieve a 6% improvement in talent outcomes. If
only soft accountability is used, leaders may achieve up to a 10% improvement
in talent outcomes. When paired together, the combination of hard and soft
accountability improves talent outcomes by 25%, a substantial increase over
either in isolation.
Definitions of Hard and Soft Accountability

Hard accountabilityThe use of tangible and direct incentives,
such as performance reviews and MBOs (e.g., promotion or retention rate)
Soft accountabilityThe use of intangible and indirect incentives within
the culture and environment (e.g., providing internal benchmark data to
peers) to influence behavior
Use Hard and Soft Accountability
Hard Accountability Underperforms Without Soft Accountability

Holding leaders accountable for talent management through performance
reviews and compensation has a greater effect when combined with soft pressure
Impact of Accountability on Talent Outcomes
30%
25%
Combining soft and hard

accountability increases
talent outcomes by an
additional 9%.
9%
Maximum
Impact on Talent 15%
Outcomes*
Total Impact
of Soft
Accountability
and Hard
Accountability
in Isolation
10%
10%
6%
6%
0%
Hard Talent
Management Accountability
Soft Talent
MBOs
2008
Performance Review
Hard and Soft Talent

MBOs
Environment
2008
Performance Review
Prestige
Peer Rankings
1. Joe Smith
2. Susan Adams
Environment
Prestige
Peer Rankings
1. Joe Smith
2. Susan Adams
3. Chris Blank
3. Chris Blank
4. David West
4. David West
5. Jackie Hall
when a specific accountability is relatively high on a driver and the predicted impact when a specific accountability is low
on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
5. Jackie Hall

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Soft and Hard Accountability Drive Different Results

Combining Soft and Hard Accountability Creates Talent Champions
Soft and hard accountability affect commitment and effectiveness differently.
Soft accountability increases a business leaders commitment to talent
management by an average of 19%. Hard accountability increases a business
leaders effectiveness at talent management by an average of 11%. Thus,
Talent Champions, who are defined by their commitment to and effectiveness
at talent management, can only be created through a combination of soft
pressure and hard accountability.
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Use Soft and Hard Accountability Differently
Soft Accountability Drives Commitment,

Hard Accountability Drives Effectiveness
Use soft pressure and hard accountability to create Talent Champions
Impact on Commitment
19%
<1%
1%
Hard
Accountability
Soft
Accountability
Soft Accountability:
Use of intangible and
indirect incentives,
such as culture and
environment, to
influence behavior
Commitment to Talent Management
Talent Champions
Effectiveness at Talent Management
Impact on Effectiveness
11%
Hard Accountability: Use of tangible and

direct incentives, such as performance reviews
and compensation, to influence behavior
<1%
1%
Hard
Accountability
when a specific accountability is relatively high on a driver and the predicted impact when a specific accountability is low
on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
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Soft
Accountability
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Ownership, Authority, and Cultural Pressure

Establish the Foundation for Accountability
Three Imperatives for Driving Soft and Hard Accountability
Council research identified three imperatives for effectively creating
accountability for talent outcomes:
Imperative #1: Apply Proximate PressureIndividuals with the closest
proximity to a business leader have the greatest influence on commitment
to talent management.
Imperative #2: Offer ControlBusiness leaders should have the authority
and means to adjust talent management programs to fit their unique
business needs.
Imperative #3: Align with Organizational OutcomesHard
accountability, such as MBOs, more successfully improves business
leaders talent management effectiveness when it is tied to organizational
talent outcomes.
The Council identified case examples of how to implement these three
imperatives at Gap Inc. Outlet, Burger King Corporation, and The Pepsi
Bottling Group, Inc.
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Successfully Build Accountability
Building Successful Accountability

Lack of ownership, control, and environmental pressure can lead to ineffective accountability measures
Imperative #1: Apply Proximate Pressure
Imperative #2: Offer Control
Imperative #3: Align with Organizational Outcomes
Increasing Impact of Talent Management Commitment
Most Important for Soft Accountability
Most Important for Hard Accountability
Influence business leaders

commitment to talent through
individuals closest in proximity.
Give business leaders the authority

and resources to address talent
challenges as they see fit.
Align business leader

accountability with
organizational talent outcomes.
Maximum Impact on Commitment

by Group Applying Soft Accountability
Maximum Impact of
Control on Talent Outcomes
Hard Accountability Impact on Business

Leader Effectiveness at Talent Management
12%
Leaders Talent
Management
Commitment
14%
Direct
Manager
(24%)
Peers
(19%)
CEO or
Equivalent
(13%)
Key Questions Addressed

How can organizations use peer pressure and collaboration
to engage line leaders?
How can organizations increase individual ownership of talent
management strategy and resources?
Maximum
Impact
on Talent 6%
Management
Effectiveness
Maximum
Impact 7%
on Talent
Outcome
0%
Strongly
Disagree
Strongly
Agree
Business Leader Ability

to Adjust Programs to Needs

How can organizations allow leaders to create MBOs relevant
to their unique challenges?
How can organizations ensure MBOs are aligned with
organizational outcomes?
Note: The maximum total impact on talent outcomes is calculated by comparing two statistical estimates: the predicted impact when a talent
program attribute or specific accountability is relatively high on a driver and the predicted impact when a talent program attribute or
specific accountability is low on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
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12%
6%
0%
Organization
Talent
Outcomes
Business Unit
Talent
Outcomes

How can organizations hold leaders accountable for business unit
and organizational talent outcomes?
How can organizations instill effective talent management
behaviors in leaders?
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Line LeaderOwned Talent Planning and Accountability

Gap Inc. Outlet
A decentralized talent management process that provides individual line leaders ownership over talent management priorities, resources, and accountability
Gap Inc. Outlet
Industry: Retail
Gap Inc. Revenue: US$15.8 Billion
Gap Inc. Employees: 154,000
Headquarters: San Francisco, Calif.
Situation
With declining HR budgets and a need for more
decentralized and customized development
offerings, Gap Inc. Outlet realizes the need to
engage individual line leaders in identifying and
delivering more cost-effective and relevant talent
solutions. However, Gap Inc. Outlets HR vice
president finds that line leaders require a higher
level of ownership to improve talent outcomes.
Action
Gap Inc. Outlet increases line leaders focus on
improving talent outcomes by enabling leaders to
control their own talent management resources
and priorities and by instilling peer accountability.
Key Steps
Step #1: Provide Line Leader Ownership
of Talent Strategy and Resource Allocation.
Step #2: Use Peer Accountability to Drive
Talent Management Urgency.
Step #3: Leverage Peer Collaboration
to Improve Talent Outcomes.
Results
Despite a 20% decline in talent management
resources, an increased level of line leader
ownership and execution of talent management
activities has led to improved retention in must
keep talent and a 14% increase in employee
satisfaction scores.
Source: Gap Inc. Outlet; Corporate Leadership Council research.

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Increasing Individual Ownership for Talent Management

Decentralize Talent Management to the Line
Many HR organizations are firmly in control of the talent strategy,
accountability, and execution. Gap Inc. Outlet has developed a very different
philosophy that decentralizes to the line all of these critical components,
specifically creating a situation where:
Business leaders own the strategy and the resources;
Hard accountability is supplemented by a high degree of soft
accountability, and;
Execution is managed collaboratively.
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Practice in Context
Overcoming Barriers to Line Leader Engagement

Gap Inc. Outlet engages line leaders by increasing individual ownership of talent
management strategy and resources and by using peer pressure and collaboration
Barriers to Engaging Line Leaders in Talent Activities
Gap Inc. Outlets Response
1
HRDriven Talent Strategy
Corporate HR
Talent Plan
HR Role: Create talent strategy and resource plan

and cascade to line.
Talent Planning Tool
Line LeaderOwned Talent Strategy

and Resource Planning
1. SimplifyIdentify methods to clarify new-hires expected deliverables within the first six months of tenure.
2. Stability-= Support career planning team to provide clear career path for Generation Y.
3. Career Development-Focus on retaining must-keep talent
4. Type Business Priorities Here
Line Leader Role: Decide own talent priorities and

determine how to spend talent management budget.
2
HRDriven Accountability
Public Talent Scorecard
Peer-Leader Accountability
Line Leaders
Total
Emily
Curtis/
Finance
Maya
Smith/
HR
Work/Life
Balance
75
73
74
76
71
65
Belief in
Company
65
55
66
70
68
68
63
Customer
Focus
71
69
76
66
72
78
68
Job
Satisfaction
58
60
59
60
62
50
56
Respect
66
60
59
68
79
75
66
Leader
HR Role: Hold line managers accountable for talent

management outcomes (e.g., retention) through
performance management process and incentives.
Performance
Review
Line Leader Role: Present leader-specific talent

metrics to peer leaders and provide visibility into
action plan to address low-scoring areas.
Louise
William
Jonathan
Lucile
Holly/
Stackhouse/ Springford/
Ahada/
Northeast Southeast Northwest Southwest
82
3
HR
HRDriven Execution
HR Role: Mandate line manager execution on HR
created and prioritized talent management activities.
Line Leaders
Line Leader Collaborative Execution
Line Leader Action Plan
Line Leader Role: Collaborate with other line leaders

on prioritizing talent management actions to address
ongoing challenges.

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Give Leaders Greater Control of Priorities

Control Is the Key to Accountability
To enable business leader ownership of talent management, Gap Inc. Outlet
provides business leaders with control over their talent priorities and budgets
regarding learning and development and recognition. This underlines a critical
tenant Gap Inc. Outlet discovered: it is ineffective to hold leaders accountable
for activities for which they feel they have little influence or control. This
step is designed to provide senior leaders across the organization with an
opportunity to exercise judgment about how to allocate talent management
resources in their part of the business.
Focusing Leaders on the Right Activities

To ensure leaders focus on the most relevant talent activities, Gap Inc. Outlet
allows leaders to select their talent priorities from a fi xed set of categories
derived from its Employee Opinion Survey. This spreadsheet tool walks leaders
through key strategic questions they need to address, based on their functions
unique Employee Opinion Survey results.
Push Talent Strategy Deeper into the Organization
In another critical departure from many other organizations, Gap Inc. Outlet
focuses on driving talent ownership deeper into the organization by engaging
senior leaders below the general manager level in identifying talent goals and
prioritizing talent investments.
Step #1: Provide Line Leader Ownership of Talent Strategy and Resource Allocation
Enable Leader-Led Strategies

Gap Inc. Outlet decentralizes ownership of talent management priorities and
resources to engage individual line leaders within each business unit in talent activities
Gap Inc. Outlets Line Leader Talent Planning Tool
Illustrative Data
Engage Senior
Leaders Below
the General
Manager Level
While most organizations
engage the seniormost
business leader in
business unitlevel talent
review and succession
planning activities, Gap
Inc. Outlet engages all
senior leaders below the
GM level (i.e., VPs and
above) in identifying their
personal talent objectives
and prioritizing their
own talent management
resources.
VP Finance
Business Unit
Build your specific functional people strategy (Tab 1):

What are your business priorities?
Where are the critical opportunities from your engagement survey feedback?
Identify your areas of opportunity.
Review the Learning and Development and Rewards and
Recognition programs available for purchase (Tab 2):
What solutions will meet your needs?
What additional solutions do you need that might need to be outsourced?
Complete the priorities and resource template specific to your function (Tab 3):
Click in your EOS driversuse the drop down to select.
You can use the Employee Planning Tool (fourth tab) to help define who on your team
you wish to provide specific training for.
Choose your L&D choicestemplate will calculate as you go.
Add additional external training that you wish to do.
Send completed template/workbook back by 21 January.
Guide Leaders Talent Planning

Toward High-Impact Activities
Gap Inc. Outlets talent planning tool
provides leaders with a fixed set of talent
categories that match its employee opinion
survey categories to ensure leader focus on
relevant talent management activities.

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Give Leaders Greater Budgetary Control

Control Is the Key to Accountability
Gap Inc. Outlet gives business leaders budgetary control over talent
management topics that most impact individual employees, such as day-today work environment, talent retention strategies, and employee and manager
development. Business leaders can use that budget to spend on the talent
management activities they think are most critical to develop their people,
based on their business environment.
Setting Up Guardrails
Gap Inc. Outlet creates guardrails to guide leaders decision making by
providing leaders with a menu of resources from which they can choose to
allocate their budget. Business leaders can use external resources in addition to
internal programs, if necessary. HR retains control over some talent resources,
such as compliance, that are best administered centrally.
Step #1: Provide Line Leader Ownership of Talent Strategy and Resource Allocation (Continued)
Fund Leader Strategies with Resources

Gap Inc. Outlet provides individual line leaders control over the talent
management resources that impact engagement and retention of their employees
Gap Inc. Outlets Talent Planning Tool
Gap Inc. Outlet provides leaders ownership of their own talent
management budget, which enables the following:
More resource-effective consumption of talent management programs
More customized investments to retain and engage key talent
Forces leader understanding of talent and talent management needs
Build your specific functional people strategy (Tab 1):
What are your business priorities?
Where are the critical opportunities from your engagement survey feedback?
Identify your areas of opportunity.
3:
Review the Learning and Development and Rewards and Recognition

programs available for purchase (Tab 2):
What solutions will meet your needs?
What additional solutions do you need that might need to be outsourced?
Complete the priorities and resource template specific to your function (Tab 3):
Click in your EOS driversuse the drop down to select.
You can use the Employee Planning Tool (fourth tab) to help define who on your team
you wish to provide specific training for.
Choose your L&D choicestemplate will calculate as you go.
Add additional external training that you wish to do.
Send completed template/workbook back by 21 January.
Balancing Line Leader and HR Ownership of Talent Management Resources

VP Finance
Business Unit
HR maintains ownership of:

Compliance resources and programs;
Core aspects of the employee value proposition
(e.g., compensation, medical benefits); and
Development, sourcing, and administration
of talent management solutions.
Line leaders are provided ownership of areas that impact:

Day-to-day work environment;
Talent retention; and
Employee and manager development.
Line leaders can allocate

their resources among a
menu of center-led talent
management programs
in support of their
individual priorities.

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Use Peers to Create Accountability

Quarterly Results Shared with Business and Functional Leaders
Instead of having HR hold business leaders accountable for talent outcomes,
Gap Inc. Outlet relies on peer pressure to ensure business leaders achieve
their talent outcomes. Gap Inc. Outlet publishes quarterly Employee Opinion
Survey results, turnover statistics, and progress made on individual talent
action plan items, by each individual business leaders name, to all business
and functional leaders. In addition, there is a focused conversation at each
quarterly talent meeting when leaders have to briefly review key talent metrics
and progress against their action items.
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Step #2: Use Peer Accountability to Drive Talent Management Urgency
Accountability Through Skin in the Game

To ensure line leader focus on talent activities,
Gap Inc. Outlet publishes individual talent management results
Gap Inc. Outlets Published Employee Opinion Survey Results
and drives urgency by presenting

its talent management results
and plans to peer leaders
Illustrative
Business Leader Talent Review Meetings
Employee Opinion Survey, Q4 2007
Leader
Total
Emily
Curtis/
Finance
Maya
Smith/
HR
Louise
Holly/
Northeast
William
Stackhouse/
Southeast
WorkLife
Balance
75
73
74
76
71
65
82
Belief in
Company
65
55
66
70
68
68
63
Customer
Focus
71
69
76
66
72
78
68
Job
Satisfaction
58
60
59
60
62
50
56
Respect
66
60
59
68
79
75
66
Providing Full Visibility into Line Leaders Results

The CEO, enterprise and division HR, division president (GM), the division
leadership team, and each leadership team members entire functional team
will see the leaders individual results (up to 300 people per team).
Jonathan
Lucile
Springford/
Ahada/
Northwest Southwest
Objective: Create urgency around talent

activities through peer visibility into leaders talent
management performance.
When: Quarterly
Participants: All business and functional leaders
within business unit
At or Below the Bottom 40th Percentile

At or Above the Top 25th Percentile
Information Presented to Line Leaders:

Individual line leader Key Talent metrics
and updates
Individual line leader employee engagement
pulse survey outcomes and updates
Individual line leader action plan updates
Line Leader Testimony: Beyond Compliance

I think the combination of being able to control my own HR resources and a real shared sense of accountability across the leadership team
has brought a new level of urgency and focus on talent issues.
Sonia Syngal
Vice President, Outlet Production and Supply Chain
Gap Inc. Outlet
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Use Peers to Improve Talent Outcomes

Solutions Collaboration at the Quarterly Talent Planning Meeting
Gap Inc. Outlet does not use the quarterly talent planning meeting only to
hold leaders accountable; it also serves as a forum for the individuals who see
the results to collaborate on possible solutions. This situation allows Gap Inc.
Outlet to do the following:
Create a strong sense of team across the divisions leadership by identifying
solutions together.
Provide an opportunity for business leaders to share best practices.
Allow business leaders to identify common challenge areas and collaborate
on solutions for which they will hold each other accountable.
A Closer Look at the Collaboration Process

The collaboration process is both a bottom-up and top-down approach, with
specific action items coming out of the Employee Opinion Survey scores and
from HR and business leaders collaborating to develop a suggested action
plan. Business leaders present the suggested action plan to their peers at the
quarterly talent planning meeting and discuss whether the same challenge is
manifest in other areas of the business or if a best practice exists to address it.
If shared challenges exist, business leaders will identify the most appropriate
business leader to own the action steps and may split responsibilities across
leaders.
Progress Tracked Centrally
Business leaders peers have visibility into their progress through a centrally
stored action planning document. This document lists business leaders, by
name, and provides updates on their status. Accountability is further driven
through quarterly reviews by the business units general manager.
Step #3: Leverage Peer Collaboration to Improve Talent Outcomes
Improving Talent Outcomes Through Collaboration

Gap Inc. Outlet provides leaders with ownership over identification
and execution of talent priorities to improve on their survey results
Quarterly Talent Management Action Planning Meeting
Gap Inc. Outlets Keys to Successful
Leader Ownership of Talent Initiatives
Gap Inc. Outlet Talent Planning Summary

Opportunity/
Action Item
Compensation
Career
Opportunity
Training
Action Plan
Expected
Delivery
Analyze individual pay and ensure it is equitable.
March 2008
Ensure store pay is aligned appropriately with

job level and experience for every position.
Create role clarity/review job descriptions
and ensure roles are clearly delineated.
March 2008
May 2008
Status
Owner
Will be completed by
3/31/08
Two weeks later, will be
completed by 4/14/08
On track, will be
completed 5/9/08
Emily Curtis/
Maya Smith
Review organizational structure and ensure best

role alignment to new business priorities.
April 2008
On track, will be
completed by 4/30/08
Determine L&D strategy for 2008 (including

external technical training) within L&D budget.
February 2008
Final presentation:
2/29/08
Create an onboarding plan for new line

managers.
June 2008
Next update: 3/31/08
HR
Maya Smith
Jonathan
Springford/
Patrick Ofer
Louise Holly/
Lucile Ahada
Maya Smith/
William
Stackhouse
Agenda Ownership:
Leaders own the agenda for the
talent action planning meetings to
allow focus on the talent challenges
and activities most relevant to their
business.
Visibility into Progress:
An action planning document is
updated quarterly and stored
centrally to provide leaders with full
visibility into each others progress,
which in turn drives urgency for
taking action.
GMDriven Accountability:
Progress against planned activities is
reviewed in a quarterly leadership
team meeting led by the general
manager of the business unit to
instill urgency and execution.
HRBP
VP
GM
Line Leaders
Business Unit Quarterly
Line-Lead Talent Plan Meeting
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Use Leader Collaboration

to Improve Talent Outcomes
Gap Inc. Outlet mandates line leaders to collaborate
on the identification and execution of key talent
action items in overcoming ongoing talent challenges.
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Improved Ownership, Better Results

Improved Results Under a Tighter Budget
Despite a 20% decline in HR budget, Gap Inc. Outlets practice to improve
line leader ownership and execution of talent management activities has
helped it realize improvements on key talent and employee engagement
metrics. Specifically, Gap Inc. Outlet has seen a 25% improvement in its key
talent retention goal. In addition, employee satisfaction scores have increased
14% as a result of improved business leader ownership of talent management
resources, strategy, and execution.
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Results
Increased Talent Management Effectiveness

Despite a significant decrease in HR budget
Gap Inc. Outlet outperforms

key talent retention goal
Gap Inc. Outlets Corporate HR Budget Reduction
Gap Inc. Outlets 2007 Key Talent Retention Performance
100%
(~20%)
Talent
Management
Program
Budget
80%
25%
Retention
Goal
2006
2007
2006 Goal
2007 Goal
Achieved
and demonstrates improved employee satisfaction

Average Improvement in Business
Leaders Employee Satisfaction Scores
Putting Competition to Good Use

3.94
Employee
Satisfaction
Score
14%
3.47
2007
The key to leader engagement in talent management practices is quite simply

accountability: What gets measured, gets done. And what gets measured
that has your name on it REALLY gets done! Executives are, by definition,
competitive and driven to compete on the numbers. The more competitive
you can make the game, the more they will pay attention.
Eric Severson
Gap Inc. Outlet
2008(Q2)
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Practice Q&A with Eric Severson, Vice President of HR

Commentary and Implementation Tips from Gap Inc. Outlet
1. In hindsight, what would you have done differently? What is the key to making this a successful practice?
I would have done this sooner. I think its a mistake to think that business leaders dont understand the importance of investing
time and resources in people to drive business results. They do. They are just tired of clunky, time-consuming, one-size-fits-all
talent management solutions that dont solve the people problems they have now. The keys to making this practice successful
are simplicity and relevanceeasy, one-page tools that address burning issues, fast processes, and leveraging existing business
meetings for people processes. If its fast, simple, and relevantand they have to talk about it with their peers and their boss
they will do it.
2. If you could only do one thing, what would it be (that is, whats the most important aspect of this practice)?
Transparent measurement. Most leaders are where they are because they have a powerful drive to win. They have been trained
for their entire careers to focus on competing on the critical few business levers for which the business holds them accountable.
Most businesses regularly publish individual leaders financial results (sales, earnings, margin, etc.)and that transparency is
a significant motivator and accountability tool. Why not people results? We find that when people results are measured at the
local level (not just the enterprise level), and leaders are competing against their peers, they invest more time and effort in their
people. This is an example of where internal competition can be harnessed and put to good use.
The hardest part has been providing customized talent management solutions that fit individual leaders needs. Its true that
one-size-fits-all fits no one. However, one-size-fits-all is also generally cheaper and easier to implement for HR. Providing
custom solutions required adopting an entirely new mind-set about what we do and how we do it as an HR team. Increasingly,
we are focused less on things like having a uniform look and feel for programs, forcing best-in-class training on people who
dont want it, and building in-house solutions that are perfect. Instead, we are focusing more on solutions that are simple, can
be delivered quickly, and that individual leaders care about and are willing to champion.
Gap Inc. Outlet: Implementation Road Map

The Council recommends the following steps to begin implementing Gap Inc. Outlets practice
First Steps: Line LeaderOwned Talent Planning and Accountability
Step #1: Identify Talent Management Decisions That Can Be Decentralized to

Business LeadersTransfer responsibility to business leaders for talent management
strategies that impact employees work environment, retention, and development.
Step #2: Determine Metrics for Holding Business Leaders AccountableIdentify
the most appropriate metrics to determine business leaders success at talent
management (e.g., employee opinion surveys, pulse surveys, performance against
people objectives).
Step #3: Transfer Ownership of Talent Management Resources to Business
LeadersGive business leaders control over the talent management resources
that can impact the talent management strategies for which they have been given
responsibility (e.g., Learning and Development, Rewards and Recognition).
Step #4: Integrate Peer Accountability into Talent Management ProcessIdentify
opportunities to provide ongoing peer visibility into business leaders results
(e.g., monthly publication, intranet dashboards, monthly meetings).
Step #5: Enable Business Leader CollaborationCreate occasions for business
leaders to collaborate on talent management challenges and provide ongoing support
for efforts (e.g., business leaderled monthly meetings, best practice sharing intranet
boardrooms).

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Business Leaders Are Primarily Accountable

for Team and Business Unit Talent Outcomes
Talent Champions MBOs Are Organization-Related
Many organizations report challenges with business leaders hoarding talent.
This response should not be surprising, as most business leaders are primarily
accountable for the talent outcomes of their direct reports and business unit
instead of the broader organization. Aligning talent objectives with the broader
organization instead encourages business leaders to share talent. Council
research supports this in that Talent Champions are four times more likely
than Talent Rejecters to indicate that organization-related talent MBOs are
most important.
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Business Leaders Held Accountable for Direct Report Outcomes
Leaders Use Hard Accountability to Drive

Direct Report and Business Unit Talent Outcomes
Across management levels, business leaders indicate that their most important
talent MBO relates to their direct reports or their business unit, not the organization
Level Within Organization of Most Important Talent MBO
Level Within Organization of Most Important Talent MBO
General Managers
Organization
Directors
Organization
11%
Direct
Reports
41%
Business
Unit
40%
26%
63%
Direct
Reports
19%
Business
Unit
Percentage of Respondents Indicating

Organization-Related Talent MBO Is Most Important
42%
33%
9%
Talent
Champions
Note: Business leaders were asked for their most important talent-related
MBO and to what level of organizational outcome it related.
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Talent
Rejecters
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Personalized People MBOs

A people-focused MBOsetting process for leaders to ensure personal relevance and create urgency for improving talent outcomes
Industry: Retail
Revenue: System revenue of US$2.4 billion; franchise
restaurants generated sales of US$12.5 billion.
Employees: 39,000 worldwide; franchisees employ about
310,000.
Headquarters: Miami, Fla.
Situation
Burger King had a well-established people strategy
but determined people-related goals for business
leaders were critical to fully executing that strategy.
To implement people goals, Burger King would have
to address the three critical reasons these goals
typically fail:
Lack of Individually Relevant People Goals
Lack of Alignment with Desired Business Outcomes
Poor Execution of People Goals
Action
Burger King overcomes barriers to people-related
objectives through an MBOsetting process that
enables officers and directors (approximately 200 people
worldwide) to select individually relevant people-related
MBOs, ensures quality assessment of the objectives, and
provides leaders with tools to support implementation
of their talent management objectives.
Key Steps
Step #1: Guide Leaders to Select Individually
Relevant People Objectives.
Step #2: Review People Objectives for Quality
and Business Alignment.
Step #3: Enable Leader Execution of Personal
People Objectives.
Results
Increased internal fill rate in 2008 to 41%, up from
34% in 2007 and 29% in 2006
Decreased turnover rates for frontline staff in 2008
to 131%, down from 140% in 2007 and 161% in
2006
Decreased turnover rates for corporate staff in 2008
to 12.5%, down from 18% in 2007 and 19% in 2006
Source: Burger King Corporation; Corporate Leadership Council research.
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Three Failures of People Goals

Goals Insufficient to Produce Talent Outcomes
Council research indicates that people goals frequently fail to improve talent
outcomes due to three key challenges:
Lack of individually relevant people goals
Lack of alignment with desired business outcomes
Poor execution of people goals
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Practice Driver
Shortcomings of Standard People Goals

People goals fail to improve talent outcomes because they lack individual relevance
for leaders, are unclear and poorly aligned with business goals, and are poorly executed
People-Focused Goals Fail to

Improve Leaders Talent Outcomes
Lack of Individually
Relevant People Goals
People goals are created and deployed
from the corporate center, limiting
flexibility to adjust to the talent
challenges and needs of individual
leaders.
Lack of Alignment with

Desired Business Outcomes
Lack of clear, business-aligned
goals delineating specific actions
and outcome metrics fail to drive
significant change and talent results.
Poor Execution
of People Goals
Lack of guidance for how to
effectively execute people goals
undermines long-term sustainability
of talent results.

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Burger King Integrates People MBOs

into Performance Rating and Compensation Process
Success of People Results Driven by Three Components
In 2007, Burger King introduces people results to its performance rating and
compensation process. Burger King includes three critical components to their
people results process that drive its success:
Guide leaders to select individually relevant people objectives.
Review people objectives for quality and business alignment.
Enable leader execution of personal people objectives.
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Practice in Context
Creating Effective People MBOs

Burger King introduces people results to the existing performance rating and compensation
process and addresses key barriers to identifying and executing on people-related objectives
Burger Kings Pre-2007

Leader Performance
Rating Equation:
Business Results
(100% Weight)
Performance Review
Business MBOs
Compensation
Merit Pay
Bonus
Equity Considerations
Performance Review
Burger Kings 2007
Leader Performance
Rating Equation:
Business Results
(Two-Third Weight)
1. Guide Leaders to Select Individually Relevant

People ObjectivesBurger King creates an
MBO catalog that allows leaders to choose
individually relevant people objectives and metrics.
MBO Selection Tool
People Results
(One-Third Weight)
Business MBOs
2. Review People Objectives for Quality and

Business AlignmentDirect managers and HR
review leaders proposed people objectives for
their ability to drive talent outcomes and alignment
with business needs.
MBO Assessment Process
People MBOs
3. Enable Leader Execution of Personal People

ObjectivesBurger King provides leaders
with targeted how to guidance on key talent
management activities.
Talent Management Toolkit
HR MBO Assessments
F08 Performance Management:
Name: Burg R. King
Title:
Function:
Approved
Green
District Director
Operations
What
Weight
Business
Business
Objectives
Go
Forward
Pillar
Fund the
Objective
Name
Committed Deliverables
Expand marketing plan
.25
Fund the
Future
This is the
name of
my FIRST
Business
Objective
0.5
Working
Together
Inclusion
These are the committed

deliverables for my FIRST
Business Objective.
Develop and communicate
an inclusion plan to your
manager and direct reports
that supports Burger King
Corporations strategic
direction for diversity and
inclusion.
Increase in employee
awareness and
understanding of the
companys diversity and
inclusion initiative
Increase in favorable
employee perceptions of
the companys diversity and
inclusion initiative
Design work assignments

to provide stretch
opportunities for individual
development
# of employees involved in
cross-functional projects.
People
Objectives
05
Working
Measures
Increase in restaurant
traffic across all
d
h
These are the measures
for my FIRST Business
Objective.
Sufficiently aligned with organizational

and business unit needs; robust enough
to drive meaningful change and improved
talent outcomes
Action: Execute MBOs
Inadequate alignment with organizational

Needs
Improvement and /or business unit needs; able to drive
Yellow
limited change and minor improvements in
talent outcomes
Action: Adjust MBOs and resubmit to
HR for approval
Declined
Red
Misaligned with organizational and/or business

unit needs; lacks ability to drive change and
improvements in talent outcomes
Action: Select new MBOs with the assistance
of HR business partner and resubmit to
HR for approval
POTENTIAL
RATINGS
GUIDE

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Leaders Select People Objectives with HR Support

MBO Selection Guides Assist with Objective Setting
Burger King creates a business leader MBOsetting tool, designed to help
business leaders select the most appropriate goals. This tool includes MBO
selection guides for the most critical people objectives, such as inclusion
and people development. These selection guides include a description of the
organizations strategy for that objective, sample deliverables, and sample
measures. HR business partners further support business leaders in selecting
their people MBOs by questioning them on critical elements of their human
capital and business strategy and advising them on appropriate objectives.
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Step #1: Guide Leaders to Select Individually Relevant People Objectives
Personalizing Leaders Talent Objectives

HR facilitates business leaders selection of business and people objectives that align with corporate
priorities and leaders individual talent challenges by providing specific sample deliverables and measures
Burger Kings Leader MBOSetting Tool
Name: Burge R. King
People Development Strategy:

Improve employee development to grow
future leaders from within and meet employees
demand for development opportunities.
MBO Categories:
Development planning
On-the-job development
Category: Development Planning
Sample Deliverables
Employee learning
Talent sharing and succession
planning
Title:
District Director, Operations
Inclusion Strategy:
Elevate inclusion beyond compliance
to establish a committed culture of inclusion
that reflects Burger Kings customer base.
Identify objectives that will advance the business and improve results.
Business
Objectives
Weight
Objective
Name
.25
Business
Objective #1
Committed
Deliverables
Measures
MBO Categories:
Objective
Sample Measures
Conduct functional skill

Reduce skill gaps within
assessment to identify
the function.
gaps and create subsequent
action plan.
0.50
Inclusion
People
Objectives
Conduct quarterly
Achieve 100% of action
development plan review
steps in development plans.
sessions with direct reports
to ensure ongoing progress.
Inclusion MBO Selection Guide
FY 08 Performance Management: O&D Objectives
0.50
People
Development
HR Business
Partner
Develop and
communicate an
inclusion plan to
your manager and
direct reports that
supports Burger King
direction for diversity
and inclusion.
Increase employee
awareness and
companys diversity
and inclusion initiative.
Increase favorable
employee perceptions
of the companys
diversity and inclusion
initiative.
Design work
assignments to provide
stretch opportunities
for individual
development.
Involve employees in
cross-functional project
or team.
Determine number of
employees involved
in cross-functional
projects.
Promoting an inclusive workforce Business partners

Leadership commitment and
Guest experience
communication
Cross-functional collaboration
Local engagement
Sample Deliverables
Category: Promoting an Inclusive Workforce
People Development MBO Selection Guide
Sample Measures
Serve as a mentor to
develop and coach diverse
employees.
Increase percent in
retention of diverse
employees.
Develop partnerships with

organizations supporting
minority talent for
recruiting purposes (e.g.,
business/professional
organizations, community
organizations, educational
organizations)
Increase high-value,
ongoing partnerships with
organizations supporting
minority talent.
Line Leader
HR Business PartnerLine Discussion Points for Selecting People MBOs

What human capital resources do you require to achieve short- and long-term business objectives?
How will you support employee development to ensure the talent needed to achieve those objectives?
How will you create a culture of inclusion reflecting Burger Kings customer base to drive business results?
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HR Ensures Leaders Choose Strong Objectives

Two Separate Reviews of People MBOs
Business leaders submit their people MBOs for two reviews: one by central
HR and the other by the HRBP and the business leaders direct manager.
The first review by central HR ensures that people-related objectives drive
the right talent outcomes. Business leaders are given a color code to indicate
their compliance: green (approved), yellow (needs improvement), and red
(declined). Leaders who achieve the lower two colors need to adjust or change
their MBOs, with HRBP help if necessary, and resubmit them.
The second review is executed by the HRBP and the business leaders manager,
frequently the head of a region or business unit. This review ensures people
MBOs adequately support the organizations and the business units business
and talent needs and that they are sufficiently ambitious in comparison with
other leaders.
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Step #2: Review People Objectives for Quality and Business Alignment
Calibrating People MBOs for Quality and Business Alignment

HR reviews people-related objectives selected by
leaders for their ability to drive talent outcomes
while HRBPs and direct managers review

objectives for alignment with business strategy
HR Objective Review
HRBP and Direct Manager Objective Review
Leader-Selected Objectives
HR
HR MBO Assessments
Approved
Green
Sufficiently aligned with organizational and

business unit needs; robust enough to drive
meaningful change and improved talent
outcomes
Action: Execute MBOs.
Needs
Inadequate alignment with organizational and/or
Improvement
business unit needs; able to drive limited change
Yellow
and minor improvements in talent outcomes

Action: Adjust MBOs and resubmit to HR
for approval.
Declined
Red
Misaligned with organizational and/or business

unit needs; lacks ability to drive change and
improvements in talent outcomes
Action: Select new MBOs with the assistance
of HR business partners and resubmit to HR for
approval.
FY 08 Performance Management: O&D Objectives
Approval Considerations
Title: District Director, Operations
Name: Burg R. King
Identify objectives that will advance the business and improve results.
Weight
Objective Name
Committed Deliverables
Measures
0.50
Inclusion
Develop and communicate Increase employee

an inclusion plan to your
awareness and
manager and direct reports
that supports Burger King
companys diversity and
inclusion initiative.
direction for diversity
Increase favorable
and inclusion.
employee perceptions of
the companys diversity
and inclusion initiative.
0.50
People
Development
Design work assignments

Determine number of
to provide stretch
employees involved in
opportunities for individual
cross-functional projects.
development.
Involve employees in crossfunctional project or team.
People
Objectives
HRBP and Head of Region/Business Unit
1. Do the MBOs adequately support the

organizations business and talent needs?
2. Do the MBOs support the business units
strategy and talent needs?
3. Are the objectives sufficiently ambitious in
comparison with other leaders in the
business unit?
Objective Quality Self-Check

Align objectives with organizational and business goals.
Ensure that objectives are ambitious yet realistically
achievable within specified time frame.
Link objectives to specific outcomes rather than processes
to track progress against goals.
A Learning Opportunity
Providing feedback on MBOs has allowed us to establish consistent standards across the organization while
guiding leaders in talent management practices that will ultimately drive meaningful culture change.
Lisa Roberts
Senior Manager, Talent Development
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Detailed MBOExecution Guidance

Guides Help with Decision Making
Burger King develops manager guides on activities critical to talent outcomes
to help business leaders successfully execute their MBOs. These guides are
designed to help business leaders make better decisions and not just explain
the talent management process. Importantly, these guides also avoid all HR
speak, communicating in a simple, clear language.
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Step #3: Enable Leader Execution of Personal People Objectives
Guiding the How To of MBO Achievement

Burger King helps leaders achieve their people-related objectives with
simple guidance that enables more effective talent decision making and outcomes
Burger Kings High-Potential Review Ratings Guide
Targeting Manager Barriers
Burger King targets manager guidance
on activities that are critical to quality
talent outcomes and that managers
tend to struggle with the most.
ABILITY
ENGAGEMENT
AMBITION
OVERALL POTENTIAL
FeedbackManager Guide
Calibration Rules of the Road
Feedback and Development Guide
Development Action Tip Guide
Talk about potential.
Not just about current or most recent performance

Not a negotiation
Its about setting people and the organization up for success
Ratings Guide
Keep it behavioral.
Give specific examples to support all ratings and comments

Avoid character assassinations and/or halo effects
Maintain positive intent when sharing information and opinions
ABILITY IS ALL ABOUT KNOWLEDGE & SKILLS

Its having the breadth & depth of technical skills to successfully contribute in the current job, and beyond. Its also about the
people skills, building relationships and working together to get things done. Its about learning quickly in new situations, taking
limited direction, & exceeding expectations. Its anticipating change, and adjusting as necessary. If youve got ability, then youve
got game. Just be sure to use it for the greater good of BK.
KEYS TO THE KINGDOM THAT SIGNAL ABILITY

KNOWS OUR BUSINESS
MAKES GREAT DECISIONS
EXECUTES AGAINST PRIORITIES
INVESTS WISELY
LEADS & INSPIRES
DELIVERS EXCELLENT SERVICE
NAVIGATES RELATIONSHIPS
TREATS PEOPLE WITH DIGNITY & RESPECT
Avoiding HR Speak
Burger King simplifies
talent management
concepts by removing any
HRspecific terms and
delivering information in
clear, easy-to-understand
language.
Keep it relevant.
Goal is not to be right ; its to accurately assess & develop our talent
Only as good as the open & honest input
ABILITY looks like
FEEDBACK:
MANAGER
GUIDE
Be prepared.
Focus on development & next steps.
Strategies for retaining, motiva ting, supporting, and developing

employees
Ensure that all employees are ac curately and fairly represented

Consult with matrix managers before meeting
Bring your LDR ratings sheets
Think of behavioral examples to support Ability, Engagement, &
Ambition ratings (see next page for guidance)
Anticipate feedback from others in the room
Think about how others can help in supporting your employees
development post-LDR
FEEDBACK ACTION
&
DEVELOPMENT
TIP GUIDE
DEVELOPMENT
POTENTIAL
GUIDE
RATINGS
GUIDE
1
L O W ER TH A N M O ST PEERS
I N BA N D & FU N C TI O N
O&D
(Band 5 & Above)
MANAGERS
(Bands 3 &4)
ANALYSTS
(Bands 1 & 2)
May have been a strong manager; but

hasnt made transition to effectively
leading teams/departments/functional
areas
May have been a strong analyst, but

hasnt made transition to managing
people and/or processes effectively
May need a lot of supervision; has

difficulty making decisions independently
O N PAR W I TH M O ST PEERS
Strong technical knowledge; knows the

business and how their discipline relates;
extremely competent in their job
Effectively manage s people and/or

processes to get the job done
Needs moderate supervision in area of

knowledge; can work independently on
some things
H I G H ER TH AN M O ST PEERS
Extremely skilled technical and people

leader; seen as expert in field
Efficiently & effectively manages people

and/or processes to deliver superb results
Needs limited supervision and guidance in

own area of knowledge; can work
independently on most things
Beyond the Process

All of Burger Kings
guidelines provide explicit
information and examples
that help business leaders
make better talent
decisions. The guidelines
are not just a description
of the talent management
process or a framework
for placing people
(e.g., Nine-Box Grid).

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People MBOs Deliver Results

Internal Fill Rates Up, Turnover Rates Down
Since implementing people MBOs into its performance rating and
compensation process, Burger King has experienced excellent talent outcomes.
The percentage of U.S. positions fi lled internally is up by more than 13
percentile points from 2006. In addition, turnover rates have dropped
substantially: frontline staff turnover has decreased by 30 percentile points,
and corporate staff turnover is down nearly 7 percentile points.
130
Results
Improved Development and Retention

Improved people development results
and decreased turnover rates
Percentage of U.S. Positions Filled Internally
Turnover Rates
Turnover Rates
Frontline Staff
Corporate Staff
161.4%
140.2%
41.7%
131.4%
19.5%
33.6%
28.5%
18.2%
12.6%
2006
2007
2008
2006
2007
2008
2006
2007
2008
are attributed by Burger Kings CEO in large part to a new leadership focus on talent outcomes
The Importance of Talent at Burger King

Nothing is more important than our people, particularly when you look at the growth we are facing over the next 5 to
10 years. [Our talent processes] make it far easier to see where our development needs are, where our weaknesses lie,
and where we need to recruit.
John W. Chidsey
Chief Executive Officer

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Practice Q&A with Pete Smith, Chief Human Resources Officer

Commentary and Implementation Tips from Burger King Corporation

There isnt a silver bullet for making this work. Because the use of MBOs for people results was a radical departure and required a huge
culture shift for Burger King, we had to deliver a consistent, simple message over time. We also had to provide a lot of guidance, education,
and feedback to ensure we could truly start to embed our renewed emphasis on talent into our companys culture. To provide that support to
our leaders and to make sure they understood the degree of quality we expect in people MBOs, we worked with them to design and evaluate
the quality of their proposed objectives. This way, we could also calibrate the MBOs to ensure consistent quality across Burger King and ensure
objectivity in the MBOs.
2. How do you leverage accountability efforts to improve talent outcomes for leaders lacking a talent mind-set?
Compensation is critical to accountability. While you have to educate leaders and provide them with the tools to realize improved talent results,
at the end of the day, you must link it to compensation to really get executives attention. Linking people results to compensation in such a
significant way is necessary for leaders to take responsibility for something they arent naturally responsible for.
The most challenging part was inspecting and policing all of the proposed objectives to ensure that we had a consistent level of quality across the
organization and to ensure that the people MBOs were properly aligned with business needs. It was time-consuming, but it was something we
had to do to show that we were serious about improving our talent results by holding leaders to a consistent standard. For example, the MBOs
couldnt simply focus on hiring targets, as there are other important areas such as community outreach and people development to address.
In addition, HR had to make tough judgment calls about senior-level executives and the quality of their MBOs, and there is a lot on the line
for the executives if they do not achieve their objectives. In the future, we are looking to include representatives from the line on the panel that
reviews proposed people MBOs so that we have the level of scrutiny and objectivity required for successful MBOs. As leaders get used to this
annual objective-setting process and are more adept at setting high-quality objectives, the need to evaluate and police the objectives wont be as
strong, and the burden for HR will decrease significantly.
Burger King Corporation: Implementation Road Map

The Council recommends the following steps to begin implementing Burger King Corporations practice
First Steps: Personalized People MBOs
Step #1: Introduce People Results to Performance Rating and Compensation

ProcessInclude people MBOs that account for a significant proportion of the
overall performance review and total compensation.
Step #2: Support the Line in MBO Identification Through Selection Guides and
an MBOSetting ToolDevelop tools that provide specific sample deliverables,
measures, and a framework to facilitate business leaders selection of business
and people objectives that align with corporate priorities and leaders unique
talent challenges.
Step #3: Calibrate People MBOs for Quality and Business AlignmentImplement
dual reviews of people objectives: one by HR, to ensure leaders chose MBOs that drive
talent outcomes, and one by the HR business partner and direct manager, to ensure
objectives align with business strategy.
Step #4: Guide Business Leaders on Making Better Talent DecisionsHelp leaders
achieve their people MBOs with simple guidance that provides explicit information
and examples that helps business leaders make better decisions, is focused on the
activities most critical to talent outcomes, and uses clear language that lacks any
HRspecific terms.

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Strength and Health Talent Portfolio Review

A talent review and recognition process that instills effective talent management behaviors in leaders to ensure organization-wide and long-term impact
Action
Pepsi Bottling Group creates a talent dashboard
that measures leaders on the strength and
health of their talent outcomes.
Industry: Beverages
Revenue: US$13,591 Million
Employees: 69,100
Headquarters: Somers, N.Y.
Situation
Many organizations fail to foster talent outcomes
that benefit the organization due to insufficient
talent management accountability measures and
assessments.
Key Components
Component #1: Evaluate Leaders on Talent
Outcomes That Benefit the
Wider Organization.
Component#2: Recognize Leaders Talent
Management Behaviors and Outcomes.
Results
As a result of its focus on strength and health,
PBG is recognized as a Top 20 organization for
diversity. In addition, employees indicate they
are increasingly satisfied through year-over-year
improvements in engagement scores.
Source: The Pepsi Bottling Group, Inc.; Corporate Leadership Council research.
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Three Problem Areas for Holding Business Leaders

Responsible for Organization-Wide Talent Outcomes
Three Barriers to Effective Accountability
Council research reveals three barriers exist to using hard accountability
effectively:
Leaders are only held accountable for business unit talent outcomes.
Talent metrics and reviews fail to provide a holistic understanding
of the business units talent situation.
Leaders are only held accountable for quantitative talent metrics.
Designing Effective Metrics
Pepsi Bottling Group creates a talent scorecard designed to overcome the
challenges of talent hoarding, focus leaders on sustainable talent outcomes,
and account for unique organization-specific situations.
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Practice Driver
Failure to Instill Sustainable Talent Management Behaviors

Pepsi Bottling Group creates a talent scorecard that holds leaders accountable for
business unit and organizational talent outcomes to instill effective talent management behaviors
Problem Areas
Implication
PBG Solution
What Is Being Measured

Business Unit and Organizational
Talent Metrics
1
Leaders are only held
accountable for business
unit talent outcomes.
Org
BU
BU
BU
Leaders hoard talent,

which undermines
companywide talent
outcomes.
Leader accountability
for business unit and
organizational talent
outcomes
Business Unit Summary, North: Bob Smith

Quantitative
Metrics
STRONG
Bench
Talent Sharing
Talent import/export ratio
Vacancies
Percent of ready-now successors for

key positions
HIPO Pipeline
Number of junior and mid-level HIPOs
Diversity
Representation
2
Talent metrics and reviews
fail to provide a holistic
understanding of the business
units talent situation.
Leaders improve talent

outcomes they are being
held accountable for
while they suboptimize
outcomes they are not
being measured on.
Scorecard
Retention
Succession
Strength
Engagement
HIPO
Diversity across management levels
Talent Strength
and Health Scorecard
Leader accountability
for the strength
and health of their
talent portfolio

Quantitative
Metrics
STRONG
Bench
sTaLENTSharinG
sVacancies
s()0/0IPEline
Diversity
Qualitative
Comments
Key
Strength
sTaLENTIMPOrtEXPORTratiO
s0ErcenTOFREady-NOWSUCCESSORSFORkeYPOSITIONs
s.UMBEROFJUNIORANDMId-leveL()0/s
s %XPORteDHIGH PerFORMINGMANAgers
s 3ELF SUFlCIENTFOR153PENDINGMOves
s NeeDTOIMPROVEQUALITYOFCAMPUSRECRUITING
s2EPRESENtaTION
Capability
s$IVErsitYACROSSMANAgeMENTLEvels
s /PPOrtUNITYATMIDDLEMANAGERLEVEl
s3Taflng
sTaLENT$EveLOPMENT
s0ErfORMANCEOFNEWHIREs
s0ErfORMANCEOFNEWLYPROMOTEDEMPLOYees
s NEWONBOArdINGPROGraMBEGINNINg
s SignilcaNTIMPROVEMENTSFROMPRIORyear
Progress
Being Made
Key
Opportunity
HEALTHY
Diversity
s!CCESSAND)NCLUSIOn
s2ETENTION
Employee
Engagement
s%MPLOYeeengageMENTSCORESONINCLUSIVEenviRONMENt s Q1trAININGANDMENTORINGPROGraMSBEGIn
s0ErcenTTUrnOVerOFDIVErsEEMPLOYees
s SignilcaNTIMPROVEMENTATALLLEVEls
s%MPLOYeeInsights
s%MPLOYee4UrnOVer
Community
s%NgageMENTSCORES
s0ErcenTTUrnOVerOFFRONtlINEEMPLOYeeS
s HighengageMENTSCORESINALLDIMENSIONS
s 0OSITIVEtrendsACROSSlasttwOYEars
s6OLUNTEERISM
s.UMBEROFHOURSVOLUNTeered/.UMBEROFEMPLOYees
s LaUNCHEDNEWSErvICEPROGraMIN1
How It Is Being Measured

3
Leaders are only held
accountable for quantitative
talent metrics.
BU1
BU2
BU3
Leaders unique business

and organizational
context is not taken
into consideration
when comparing talent
management outcomes
across business units.
Talent Management
Report Card
Recognition of effective
talent management
behaviors (in addition
to outcomes)
PBG Talent Management Report Card

Strength
Business Unit
Health
Capability
Overall
Strength
Turnover
Overall
Health
A-
B+
A-
C+
A-
A-
B-
A-
Bench
North
Bob Smith, GM
South
Marco
Rodriguez, GM
West
Ellen Jones, GM
Diversity
Engagement
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A Holistic Assessment of Talent Management Performance

Two-Prong Assessment: Strength and Health
PBGs talent scorecard provides a holistic assessment of leaders talent
management strengths, gaps, and opportunities through quantitative metrics
and qualitative comments. The scorecard uses a two-pronged approach to
evaluate strength metrics to ensure a full and strong bench and health
metrics to ensure a healthy work environment and culture. The goal is to
achieve great outcomes in the short term but also ensure a foundation is
in place to continue their success in the future.
Incentives Designed to Discourage Talent Hoarding

PBG balances business unit and organization-wide talent management
performance by holding leaders accountable for having a strong bench as well
as exporting talent across the organization. These metrics are designed to
target the challenge of talent hoarding, by ensuring that business leaders help
the broader organization succeed, in addition to their own business unit.
Component #1: Evaluate Leaders on Talent Outcomes That Benefit the Wider Organization
Sustaining a Strong and Healthy Talent Portfolio

PBG creates a talent scorecard that provides a holistic assessment of individual leaders talent management performance
PBGs Talent Strength and Health Scorecard for Individual Business Units
1
Illustrative
Encouraging
Sustainable
Business Unit Talent
OutcomesPBG
measures the quality
and depth of the talent
bench (strength) as
well as the health of the
organizations culture
and work environment
(health) to achieve
a balanced, holistic
talent assessment for
each business unit.

STRONG
Bench
Available Talent
Planned Openings
HIPO Pipeline
Diversity
Representation
Capability
Staffing
Talent Development
Quantitative
Metrics
Qualitative
Comments
Key
Strength

Percent of ready-now successors for key positions
Number of junior- and mid-level HIPOs
Exported 4 high-performing managers

Self-sufficient for 1530 pending moves
Need to improve quality of campus recruiting
Opportunity at middle manager level
Performance of new hires

Performance of newly promoted employees
New onboarding program beginning

Significant improvements from prior year
Employee engagement scores on inclusive environment

Percent turnover of diverse employees
Q1 training and mentoring programs begin

Significant improvement at all levels
Engagement scores
Percent turnover of frontline employees
High engagement scores in all dimensions

Positive trends across past two years
Progress
Being Made
Key
Opportunity
2
Balancing a Strong
Business Unit
Bench with a Strong
Organizational
BenchPBG
measures the
number of ready-now
successors per business
unit and the degree to
which the leader shares
talent to focus leaders
on business unit and
organizational-wide
talent outcomes.
HEALTHY
Diversity
Access and Inclusion
Retention
Employee
Engagement
Employee Insights
Employee Turnover
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Applying Soft and Hard Accountability

Consider Behaviors as Well as Outcomes
PBG realizes the danger of only valuing outcomes without considering the
behaviors that allowed business leaders to achieve those outcomes. Therefore,
PBG created a mechanism to capture and measure a qualitative assessment
of business leaders performance and ensure it is balanced against their
quantitative results. The head of HR presents this talent management report
card to PBGs executive team and provides talent management grades for
each business unit leader based on quantitative talent outcomes as well as
qualitative assessments.
Mixing Soft and Hard Accountability

PBG uses soft accountability by recognizing leaders who have outstanding
business and talent management performance in the annual CEO Circle
awards. This award program is highly visible and makes excellence in talent
management something to be proud of and admired. In addition, PBG
applies hard accountability by holding leaders accountable for their talent
management results through performance reviews linked to compensation and
promotion opportunities. They do this by first having business leaders grade
themselves on their achievement and then the head of HR calibrating those
responses across all business leaders.
Component #2: Recognize Leaders Talent Management Behaviors and Outcomes
Encouraging Effective Talent Outcomes and Behaviors

PBG fosters an environment of effective talent management
behaviors by incorporating qualitative assessments into talent reviews
and by recognizing leaders who excel

at talent management through soft
and hard accountability practices
Executive Team Talent Reviews
Talent Management Accountability Practices
Illustrative
Soft Accountability
PBG Talent Management Report Card

Strength
PBGs CEO Circle

The CEO honors a group of leaders annually
that demonstrate excellence in their
business units based on the following inputs:
Business results
Qualitative feedback from other leaders
Talent management effectiveness
Health
Business Unit
Bench
Capability
Overall
Strength
Diversity
Engagement
Turnover
Overall
Health
North
Bob Smith, GM
South
Marco Rodriguez, GM
A-
B+
A-
C+
West
Ellen Jones, GM
A-
A-
B-
A-
Hard Accountability
General Managers Performance Review Template
Name, Unit: Bob Smith, North
PBG Executive Team

Grading on Relative Results and BehaviorsThe head of
HR provides the executive team with an assessment of leaders
relative talent management performance based on a quantitative
and qualitative assessment of their performance (i.e., taking their
organizational context into consideration).
Quantitative
Metrics
STRONG
Qualitative
Comments
Bench
Talent Sharing
Exported 4 high-performing managers
Vacancies
Percent of ready-now successors for key positions
Self-sufficient for 1530 pending moves
HIPO Pipeline
Number of junior and mid-level HIPOs
Need to improve quality of campus recruiting
Diversity
Representation
Opportunity at middle manager level
Capability
Staffing
Performance of new hires
New onboarding program beginning
Talent Development
Performance of newly promoted employees
Significant improvements from prior year
HEALTHY
Diversity
Access and Inclusion
Employee engagement scores on inclusive environment
Q1 training and mentoring programs begin
Retention
Percent turnover of diverse employees
Significant improvement at all levels
Employee Insights
Engagement scores
High engagement scores in all dimensions
Employee Turnover
Percent turnover of frontline employees
Positive trends across last two years
Number of hours volunteered/Number of employees
Launched new service program in Q2
Employee
Key
Strength
Progress
Being
Key
Impact on Compensation
and PromotionsLeaders are
evaluated on people management
and business results in their
performance reviews, which
directly impact promotions and
bonus payouts.
Category
Title: GM
Expected
Weight Objectives
Results
20%
Leading
Our People
Business
40%
Results
Creating Cost 20%
Productivity
Growing the
20%
Top Line
Community
Volunteerism
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Strong and Healthy Results

Holistic Metrics Rewarded
PBGs accountability practices have generated strong and healthy talent
management results as well as business leaders who feel accountable for their
business unit and organizational talent outcomes. PBG demonstrates strong
talent results through recognition of its diverse workforce in several external
publications as well as full succession coverage across key leadership positions.
PBGs healthy talent management performance is evident through
year-over-year improvement in the overall satisfaction and commitment
of PBGs employees.
142
Results
Strength, Health, and Organizational Impact

PBGs leaders efforts to build a
diverse workforce is publicly recognized
while pipeline analysis reveals a

full bench across management levels
PBGs Sources of Recognition for Diversity
Management Bench Analysis
Source
Diversity Inc.
Asian Enterprise Magazine
Black Enterprise Magazine
List and Year

Top 50 Companies for
DiversityJune 2008
Best Companies for Asian
Pacific AmericasApril 2008
Best Companies for Diversity
ListJune 2008
Ranking
Top 30
Top 20
Top 40
and leaders maintain year-over-year

improvement in engagement scores
Critical Leadership
Positions
Area VP/GM Business Units
Unit Sales Director
Director of Retail/Business
Development Manager
Director of Food Service/
Business Development Manager
Totals
Anticipated
Moves/At Risk
6
22
Successors
Slated
6
49
16
16
10
47
81
and feel accountable for their talent behaviors

that benefit their business unit and the organization
Percentage of Employees Responding Favorable

in Overall Satisfaction and Commitment Category
PBGs Employee Insight Survey
Strong Leaders Manage

Organization-Wide Talent
71%
Percentage
Favorable
69%
68%
2005
2006
To evaluate overall leadership performance, I put equal

weighting on people scores and financial results. To achieve
good people scores in this organization, you must be a developer
and net exporter of talent.
Victor Crawford
SVP, Worldwide Operations
2007
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Practice Q&A with John Berisford, SVP of HR

Commentary and Implementation Tips from The Pepsi Bottling Group, Inc.

Strong talent management is both whats being measured, and the way you get there. Thats why the idea of qualitative
and quantitative measures are so important. When CEOs ask how HR is adding value, the tendency for an HR function
is to just measure something to demonstrate that. For example, measuring turnover and showing a decrease does not
provide enough information. We want to be able to sustain our numbers and accelerate our progress. Therefore, its
critical to understand the behaviors and context behind HR metrics.
The hardest part about implementing this practice is keeping talent metrics aligned with business objectives and ensuring
that you are addressing the needs in your strategic and operations plans. Its not about fundamentally changing the
process, but HR should shape it every year based on the annual business plans to keep it real, aligned, meaningful, and
valuable. If metrics arent valuable anymore, stop measuring them. HR should understand the business outcomes needed
and how to best facilitate it.
3. Is there anything you think is important for other organizations to know about implementing this practice?
The size of the function or budget dollars dont matter, and its not how many pages are in the deck or how many tools or
measures, but its when you ask the organization if this process creates value, enables dialogue, and drives accountability.
If youre at a place that undervalues talent management, start small. Try to find the three or four things the business
really cares about and start there. Start with the businesses and line leaders perspectives on what theyre trying to
achieve. What are they worried about? What do they want more of and less of? And keep asking until you find a place
where HR can add value.
Pepsi Bottling Group: Implementation Road Map

The Council recommends the following steps to begin implementing Pepsi Bottling Groups practice
First Steps: Strength and Health Talent Portfolio Review
Step #1: Hold Business Leaders Accountable for Organizational Talent Results
Create talent metrics that hold business leaders responsible for organization-wide as
well as business unitspecific progress to combat talent hoarding.
Step #2: Use Talent Metrics That Focus on Employee-Wide Talent Outcomes
and Bench-Building OutcomesDesign metrics that will hold business leaders
accountable for achieving a high-quality and deep talent bench as well as a healthy
organizational culture to ensure talent results are sustainable in the
long term.
Step #3: Require Qualitative Assessments on Talent ReviewsInclude qualitative
assessments of leaders talent management performance in addition to quantitative
results to provide context for outcomes and drive desired talent behaviors.
Step #4: Use Soft Accountability to Drive Effective Talent Management Behaviors
Identify opportunities to recognize leaders publicly for talent management excellence.
Step #5: Apply Hard Accountability for Talent ResultsAssess people results as
well as business results in performance reviews and link talent outcomes directly
to promotion and compensation.
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146

Chapter I:
Chapter II:
Chapter III:
Build Relevance of
Talent Management Programs Talent Management Programs Accountability to Improve Outcomes
Business Leader
as Unengaged
Talent Manager
Business leader views
talent management and
business management as
separate activities that
require separate skills and
knowledge.
Business leaders supports
implementation of HRled
talent management programs.
Business leader is supported
by talent management
programs designed around
HRs calendar and needs.
Improve the relevance of talent

programs before decreasing the
time required to complete them.
Focus business leader involvement
in diagnosing talent challenges and
identifying solutions.
Engage business leaders in a
business-focused and integrated
assessment of their talent
challenges that moves beyond
one-off talent review sessions.
Profiled Case
Business Leader
Improve the consumability of talent Use public peer accountability in addition to
as Engaged
hard accountability to build commitment to
management by:
Talent Manager
talent management.
- Helping leaders make better
Business leader integrates talent
talent management decisions;
Improve accountability for talent
management into business
and
management by increasing business leader
management and applies
- Integrating talent programs into
ownership of talent budget and decisionbusiness skills and knowledge
business leaders day-to-day
making responsibility.
to talent challenges.
work.
Align leader accountability for talent results
to organization-wide outcomes and business Business leader is actively
engaged in diagnosing and
unit talent outcomes.
identifying solutions to talent
challenges.
Profiled Cases
Profiled Cases
Business leader is supported by

talent management solutions
designed around the business
leaders calendar and needs.
Business leader is
accountable to HR for talent
management outcomes.
Business leader is accountable

to peers for talent management
outcomes.
Business leader talent

objectives are focused on
immediate team priorities.
Business leader talent

objectives are aligned with
organizational-wide priorities.

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148
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Creating Talent Champions (Volume II) is intended for senior and management executives within your organization. Members of the Corporate Leadership Council
are welcome to additional copies without charge. For quick access you may immediately download an electronic version or order additional copies at
www.clc.executiveboard.com. You may also call the Corporate Executive Boards Publications Department at +1-571-303-4444, e-mail your request to
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Best Practices for Engaging Business
Leaders in Talent Management
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CEB Corporate Leadership Council

Creating Talent Champions

Corporate Leadership Council

Creative Solutions Group

Senior Graphic Design Specialist

Corporate Leadership Council

Senior Publications Editor

2008 Corporate Executive Board. All Rights Reserved.

The Study in Eight Conclusions

1. Few Business Leaders Are Fully Committed to and

HR must work to improve the 81% of business leaders

2. Business Leaders Achieve Better Outcomes When

HR needs to focus on improving effectiveness and

3. The Most Effective HR Strategies to Improve

HR must improve the relevance and consumability

4. Improve the Relevance of Talent Activities by

Create one annual opportunity for business leaders

The Study in Eight Conclusions (Continued)

Diagnose and respond to individual leaders workflow

Integrate talent management processes into business

Build transparent scorekeeping processes for key talent

7. Business Leaders Need Ownership Over the

Cede ownership and appropriate talent management

8. Hold Leaders Accountable for Behaviors and

Hold business leaders accountable for business unit

Help business leaders set their own talent goals

Incorporate qualitative assessments into talent

A Guide to Online Resources at www.clc.executiveboard.com

Letter to the Membership

With Sincere Appreciation

Advisors to Our Work

Chapter I: Build Relevance of Talent Management Programs

Chapter II: Improve Consumability of Talent Management Programs

Practice #2: Human Capital Review Guide for Senior Executives

Practice #3: Business Leader People Practice Proficiencies

Practice #4: Talent Management Product Creation Guidelines

Practice #5: Business-Integrated Talent Management Delivery

Chapter III: Leverage Soft and Hard Accountability to Improve Outcomes

Practice #6: Line LeaderOwned Talent Planning and Accountability

Practice #7: Personalized People MBOs

Practice #8: Strength and Health Talent Portfolio Review

The Corporate Leadership Councils Talent Champions Series

Overview of CLCs Study of Business Leader Effectiveness at Talent Management

Council Series on Creating Talent Champions

Creating Talent Champions

Creating Talent Champions

Profiles of Successful Business Leaders:

Best Practices for Engaging Business

What is the mind-set of a Talent

How can HR create talent

A Guide to Online Resources at www.clc.executiveboard.com

Creating Talent Champions

Improve Consumability of Talent Management Programs

Leverage Soft and Hard Accountability to Improve Outcomes

Diagnosing and Addressing Challenges

Prioritizing Talent Management Activities for Business Leaders

Driving Effective Accountability

Strategic People Agenda (SPA) Process Templates (Standard Chartered)

Strategic Talent Planning Toolkit

Human Capital Review Guidelines (Marriott)

People Practice Proficiencies Tool (Standard Bank)

Talent Management Product Creation Guidelines (Juniper)

Shared Goal Template (Pepsi Bottling Group)

HR Product Charter Document (Apple)