Transcript Title slide
Avoiding the Talent Traps Lessons in Selecting, Managing and Retaining Key Talent
June 23, 2010 Katie Lemaire
Beware the talent traps
Talent is a critical success factor for biotech companies
Massachusetts has an abundance of critical talent However, availability doesn’t guarantee success
The talent traps
The practices that got you to where you are…likely won’t get you to the next stage of growth © 2007 Hay Group. All rights reserved.
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Talent challenges vary
Early stage / Technology Pre-Commercial/ Specialized Fully integrated Talent challenges
Managing scientists Recruiting/selecting new capabilities/specialization “War for leadership”
Reward challenges
Paying for future success Balancing retaining founders and motivating new hires
Challenges for HR
Generalist responsible for compliance, culture and HR administration Need to build HR processes, systems, and capability Management of compensation costs for profit generation Strategic advisor on talent management, career pathing, leadership development, etc.
© 2007 Hay Group. All rights reserved.
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Talent trap #1: What you see is what you get
Competencies: What you see is NOT what you get
Easier to see and develop Harder to see and develop
Skill Knowledge Social role Self-image Traits Motives
Necessary for top performance but not sufficient Characteristics that lead to longer-term success
© 2007 Hay Group. All rights reserved.
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Competencies: What you see is NOT what you get
20 10 0 70 60 50 100 90 80 40 30 Achievement Affiliation Power 100 90 80 70 60 50 40 30 20 10 0
The need for Achievement: The desire to engage in activities that satisfy testing of oneself against a measurable standard of excellence
The need for Affiliation: The drive for engaging in activities that enable the establishment or maintenance of close personal ties
The need for Power: The concern for having impact or influence on others that results in:
Others feeling stronger and more capable following interaction (Socialized Power) Making oneself feel stronger and more capable (Personalized Power)
© 2009 Hay Group. All rights reserved.
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Motive profile of scientists
30 20 10 0 100 90 80 70 60 50 40 Achievement
© 2009 Hay Group. All rights reserved.
Affiliation High performing scientist Average scientist 100 90 80 70 60 50 40 30 20 10 0 Power
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Competency model for scientists
Leveraging Knowledge Through Collaboration : Level Descriptors
1 2 3 4 Gathers and shares information (n) Gathers information by reading publications or attending conferences to stay current with developments in the field. Shares information by publishing or presenting at conferences or telling colleagues about one’s new ideas. Knows who to approach to get expertise and asks direct questions, often across multiple disciplines.
Integrates knowledge (n+1) Collaborates to exchange ideas (n+n) Accumulates knowledge by systematically reading papers or tracking the development of related technology. Is aware of the literature and history of the methods. Is able to integrate new information to update or reconfigure own knowledge-base. Asks a series of sophisticated questions to process related information or relies on established relationships, including clients and other scientists, to assemble ideas. Cites and credits others. Engages in exchange of ideas with other scientists (across boundaries) by comparing notes, sharing own knowledge or points of view, and/or inviting feedback. Appreciates and incorporates other people’s ideas. This involves a series of back-forth dialogues or repeated interactions to ensure accuracy of understanding of other people’s ideas. This relationship provides one of the iterative series of feedback loops in developing solutions. Partners to build solutions (n*n) Works closely with other scientists to build on each other’s ideas to stimulate new thinking and create new technologies. Values each other’s contributions and partners to jointly solve a problem by challenging each other and advancing each other’s thinking. This involves extensive communication and a strong feedback loop. © 2009 Hay Group. All rights reserved.
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Competency model for scientists
Sustaining the Business Sustaining the Business Creating Collaboration Sustaining the Business
© 2009 Hay Group. All rights reserved.
Driving Innovation
Innovative problem solving
Embracing challenge Creating Collaboration
Leveraging knowledge through collaboration
Self-awareness
Perception of others’ strengths and needs Sustaining the Business
Leveraging science for impact
Customer communication
Developing other scientists* Baseline Competencies
Analytical thinking Influence without authority Organizational awareness 9
Interviewing for competencies
18 16 14 12 10 8 2 0 6 4 Tech. Diff./ innovation Outside reputation Time to market Outstanding performer Truth telling Average performer © 2009 Hay Group. All rights reserved.
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Lessons learned
Treat each hire with the appropriate risk that it deserves Develop a competency model for critical roles
Review existing talent to determine those that are better performers than others Identify the attributes that differentiate them
Use these criteria to hire others
Use behavioral event interviewing to look for ‘below the water line’ competencies Set up the ‘story’ Ask people to describe their role Probe for what they did, how they felt and what they were thinking © 2009 Hay Group. All rights reserved.
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Talent trap #2: The best performer makes the best leader
Leadership requires different competencies
30 20 10 0 100 90 80 70 60 50 40 Achievement
© 2009 Hay Group. All rights reserved.
Affiliation Outstanding sales manager Outstanding sales rep 100 90 80 70 60 50 40 30 20 10 0 Power
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Leadership requires different competencies
Overall readiness for managerial roles Ready now Ready in 6-18 months Ready in 18-24 months Not a fit for the role Every one point drop in the readiness scale is = to a $1.28 million decline
© 2009 Hay Group. All rights reserved.
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Lessons learned
Understand the ‘step changes’ in the talent requirements for leadership positions
Articulate and agree on the competencies common for leadership positions in your organizations Review existing talent to determine those that are better performers than others Identify the attributes that differentiate them Use these criteria to select/develop and promote others Invest in developing leadership capabilities Off-the-shelf solutions © 2009 Hay Group. All rights reserved.
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Talent trap #3: An engaged staff is enough
Engagement is insufficient
Hay Group’s employee effectiveness framework
Clear strategic direction
Confidence in leaders
Quality and customer focus
Respect and recognition
Development opportunities
Pay and benefits Drivers
Performance management
Authority and empowerment
Resources
Training
Collaboration
Work, structure, & process
© 2009 Hay Group. All rights reserved.
Employee engagement
Commitment
Discretionary effort employee effectiveness Employee enablement
Optimized roles
Supportive environment Results Enhance individual performance / productivity Drive business performance Attract and retain talent Operational excellence and quality Improve customer satisfaction and loyalty Establish innovative, competitive organization
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Engagement is insufficient
High engagement only High engagement and high enablement Employee performance Employee retention Increase in employees above performance expectations Reduction in turnover rates Customer satisfaction Customer satisfaction rates Financial success Revenue growth 10% 50% -40% -54% 71% 89% Based on linkage case studies using Hay Group’s global normative database x2.5
x4.5
© 2009 Hay Group. All rights reserved.
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Engagement is insufficient
Engagement and enablement go hand-in-hand
HIGH
DETACHED EFFECTIVE
LOW
© 2009 Hay Group. All rights reserved.
INEFFECTIVE FRUSTRATED
HIGH
Engagement
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Lessons learned
Don’t be caught off guard
Clarify your governance and decision making Build discipline before you think that you need it Listen to your employees (and former employees) Connect employees to the big picture Identify and communicate opportunities for growth Strengthen the capabilities of your leaders © 2009 Hay Group. All rights reserved.
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