DDI’s Talent Management Intelligence

How does Talent Management Fit into Risk Management?

By Rich Wellins, Ph.D.

I just came back from a trip to India that was partly devoted to a series of events we co-sponsored with the Conference Board.

The HR topic was risk management, which--at first--seemed a bit far-fetched for me. But, when you think about it, talent management should be integrally linked to business risk management. After all, we all keep saying that talent is often the key component to business success. Ironically, the title slide for the presentation was “Enterprise Risk Management and HR: Two Kingdoms Separate and Protected.”

Risk management in general is taking rewards and risks into consideration in key business decisions. Effective talent risk management can be defined as having the right people in place at the right time to drive current and future business growth.

The Conference Board data shows that only 50% of companies integrate human capital into their risk management and planning process. And, only one in three feels they are effective in managing talent risk.

Some of the key success factors reviewed by the Conference Board included:

• A formal process to bring talent strategy into risk planning.
• Your organization’s risk management team includes HR representatives.
• A chief risk officer who insists on making talent issues front and center.

All make sense to me. No talent, no business!

Rich Wellins is a Senior Vice President for Development Dimensions International (DDI).

Leadership ‘In Treatment’

By Rich Wellins, Ph.D.

It’s tough to find time to watch television. However, my wife and I try to find time to watch two shows together. The one that really rocks our boat is HBO’s “In Treatment”.

In its third season, the series follows Dr. Paul Weston, a psychiatrist who helps three different patients over a series of episodes. There is a fourth “series” where Weston goes to his own therapist. Weston is played (superbly by the way) by Gabriel Byrne.

Psychotherapy and leadership are not one in the same. One big difference: analysts need to keep a personal distance with their patients, whereas leaders can get a bit closer. But this scripted show is one of the best ways to see models of leadership skills available. Here is what you will see by watching just one episode in terms of positive leadership behaviors:

• Listening to understand, not refute.
• Asking questions that create insights around actions and behaviors. Dr. Weston above all is a seeker, not a teller.
• Being non-judgmental. Believe me, if you follow the show, he is treating people this season who are antagonistic at best. It would be easy to judge their behaviors.
• And, he will be directive and tough when he needs to be. In one case, a teen (Jessie), brings his mother (he is adopted) into a session and starts to verbally abuse her. In no uncertain terms Dr. Weston tells Jessie he will not put up with that sort of behavior in is office. It is rare, but is firm when he needs to be.

After each show, I actually try to practice some of the behaviors I have just seen (I have a long way to go).

I also cannot help but wonder: Could I work for this guy? My answer is—I’d love it.

If you’ve watched "In Treatment", I’d love to hear if you think of Dr. Weston as a leadership model.

Rich Wellins, Ph.D. is a Senior Vice President at Development Dimensions international (DDI).

Are We Ignoring Our Strengths?

By Rich Wellins, Ph.D.

I just got back from Manchester, England and I had the opportunity to introduce two workplace thought leaders: Marcus Buckingham (of Gallup and Strengths fame, whose bestselling book titles that include First Break All the Rules and Now, Discover Your Strengths) and Daniel Pink, author of yet another blockbuster, Drive. Both spoke about a different type of workplace, one that is based on trust, high autonomy, intrinsic (vs. extrinsic) motivation, self mastery and using one's strengths.

A timely topic after two miserable years.

I conducted my semi-annual "in-the-air" survey with a dozen people on the way over from the U.S. Thirteen out of the fifteen people I bothered on the flight felt the workplace was tougher and far crueler than two years ago. How bad? I asked them to choose between the worse of two evils: flying or going to work Monday mornings. Sixty percent hated work more than flying!

What got me thinking again was Buckingham's appeal again to design work around strengths. Engagement scores worldwide have gone nowhere. Buckingham says it’s no wonder considering that, on average, we spend less than 15% of our time working on things that relate to our strengths.

I gave some thought to that on the way back related to how our talent management approach can either hinder or accelerate a strengths-based approach. My thinking is that we are still far too focused on fixing "weaknesses" under the guise of development opportunities.

Here is a set of questions to get you thinking about strengths-based talent management systems:

1. If you are in a leadership position, have you helped those working with you to clearly  get in touch with their strengths so you all know what they are in the first place?
2. Where possible, are you designing individual jobs to maximize the use of a person's strengths?
3. Does your succession planning system try to match a person's competencies and "personality profiles" to the specific strategic goals your company needs to execute upon. One size executives for one size roles does not hold water anymore. Different strategic priorities require different sorts of leaders.
4. Does your performance management/developmental planning process focus on fixing weaknesses (e.g. you need to be better at this) or maximizing strengths (you are really good at this, how can we make you even better)
5. When you design a leadership curriculum is it around a needs analysis that gives priorities to group deficiencies? Are you trying to make poor coaches into better coaches or good coaches into excellent coaches?

It really hit home to me that our talent management systems are unfavorably balanced on the side of fix -it. Perhaps a real change would be welcomed by the workforce—drive higher levels of engagements in tough times, and ultimately drive the performance of our organizations.

Rich Wellins is senior vice president at Development Dimensions International (DDI).

Facing Stormy Conditions

By Rich Wellins, Ph.D.

More than 100 people were in New York last week at The Conference Board’s Talent Management Conference, braving winter weather once again. Aside from the weather forecast, most attendees were facing stormy business conditions, but they were more optimistic than a year ago.

But, what struck me about this conference was more congruence than ever around some key themes:

1.    From Succession to Mobility

Up, out or across? Yes, organizations still consider succession a key priority and, evidently a challenge, but talent mobility is not just about “up.” It’s about moving people to where they are needed. Out is about assignments in high-growth global areas, especially China. Across is moving people to different assignments, teams, or jobs (based on both business need and development). IBM for example, recently swapped two senior leaders for purposes of perspective and experience (the lending executive went to customer marketing and vice versa).

2.    Senior Managers Stepping Up

While there is still a way to go, senior executive teams, including the CEO, are taking a more active role as talent champions. Becton Dickinson’s “office of the CEO” (the top executive team) is spending more time once a quarter reviewing the talent in the top 45 positions. At J&J, the CEO spends two days of his time facilitating a program for top leaders. 3M’s CEO is estimated to spend over 250 hours a year reviewing top talent. It makes a difference.

3.    Pipeline No Longer a Pipedream

Today, nearly half of the presenters at the Conference Board, including  IBM, J&J, and 3M, showed “the leadership pipeline triangle,” with clear development and transition programs in place for each level of leadership. Organizations are realizing the strength of their leadership bench is only as good as their weakest “leadership level” link, requiring a more holistic look

4.    Gone Global, Going Local

No trend has impacted the management of talent as much as going global. Many companies attending the conference have more than 50% of their business coming from outside of their home country. The most critical change I have seen, however, is a reduction in the need for expats. While still a prevalent part of the global talent mix, corporations are doing their best to put local talent in key leadership positions. 

Were you there, or are you experiencing the same thing? Please share what you're seeing. 

Rich Wellins is senior vice president at Development Dimensions International (DDI).

Diary of a Reformed Workaholic

By Rich Wellins, Ph.D.

I was a workaholic. Perhaps I still am although I feel I have slightly better perspective than let’s say 10 years ago.

The advent of technology some say means we are all working extra hours with what could best be called addiction to e-mail. In fact, it is estimated that those entering the workforce today will spend 10 years of their life doing e-mail (not all business of course).

On the other hand, I recently took a round trip flight from Pittsburgh to Boston and back. About 50 people were on both flights, most I would assume were on business. Both flights were during normal working hours. I walked down the aisle on the flight to Boston and was struck by the people not working. I love to fly, in part, because I catch up on work. So, the scientist in me (I have a Ph.D. in psychology) decided to do a more formal count by walking the aisles two times on each flight with my own “mental calculator.” 

The results:

• 22% - you guessed it: on-line games or crossword/puzzles
• 16% - reading books: when I was able to see, they were not business books.
• 15% - dead asleep
• 11% - reading, newspapers and magazines – I will give some deference to the fact that reading the Wall Street Journal is work.
• 11% - engaged in conversation with their seat mates (some looked like business chats, others, not work).
• 11% - Actually seemed to be working—computer.
• 9% - Headphones or doing nothing but listening or watching video (I doubt they were business podcasts).
• 5% - In a Zombie-like trance

A nation of workaholics? Perhaps not.

Rich Wellins is senior vice president at Development Dimensions International (DDI).

Performance Management Gone Wrong

By Rich Wellins, Ph.D.

Over the holidays, I was scanning the work advice column in our local newspaper. An employee was asking for advice on how to handle a derailed performance appraisal discussion with her boss. As the story goes, her boss pointed out over a lunch-time appraisal that she was often disruptive and overly critical.  She asked her boss for an example, and he blew a gasket. If she did not improve her behavior (of which he had no good examples) she may risk getting fired.

Perhaps the story is an extreme, but examples of disastrous appraisal discussions are plentiful.  Performance management is one of the most misused management processes. The shame is that if used effectively, it can be one of the most powerful.

In my opinion things have gotten worse, not better, over the past 5 to 6 years with the advent of performance management software. While these programs may help with efficiency, consistency—and sometimes effectiveness—they account for less than 20 percent of the success of the process. Nick Graber, a former HR associate at Kodak once told me that you could do a very effective appraisal on the back of a napkin. And, a very ineffective one on a three page form. His advice: “It’s the conversation that makes the difference.”

So let’s go back to the basics for a few minutes by asking yourself:

• If a stranger was to walk up to a group of employees in your parking lot, what would they say about the most recent performance appraisal? Better yet, what would you say?
• Do employees see a connection between what they are being asked to do and how it ties to the success of the organization?
• Is your performance management process executed in a reasonably consistent way throughout the entire organization?
• Is there a balance between the “whats” and the “hows” (concrete, measurable goals and the competencies/skills needed to accomplish these goals)
• Is there any sense of fairness. Are better people getting better appraisals? Are they getting bigger bonuses? If there is not reasonable distribution, there is something wrong.
• Does you system celebrate success and strengths as well as development need and “weaknesses” somewhat equally?

Sad, but true, I fear most of us would not be in the 'yes' column.

Rich Wellins is senior vice president at Development Dimensions International (DDI).

Hear All About It, Hear All About It: Innovation

By Rich Wellins, Ph.D.

“Were it left to me to decide whether we should have a government without newspapers or newspapers without a government, I should not hesitate a moment to choose the latter.” Thomas Jefferson, 1787

A few weeks ago I had the opportunity to speak at a one day event for newspaper executives at the Frontline Media Club in London.

My own view of newspapers reflects that of Mr. Jefferson over 220 years ago. However, there are many that feel the words news and paper have become two separate entities.  With new ways to access news, the newspaper industry is facing unprecedented challenges. And, the current environment has not helped circulation or ad space.

Before and during the event I engaged in a few intriguing conversations with Terry McGuire, past chief legal counsel for the Federal Communications Commission and a true expert in the industry. He told me that in the late 70’s the early wave of technology had entered the scene and he warned a similar group of CEO’s to innovate or die (my words, not his).

For many corporations, innovation has moved up in the list of business priorities yet, progress has been slow.

Many of the presentations in the morning of the conference were pleas for radical change—for more innovation. I began to ponder the wisdom I heard in a different speech three years ago at our Client Summit. Jonas Ridderstrale, author of Funky Business and Karaoke Capitalism, made a number of important points two of which stuck in my mind.  Any industry can grow through innovation and the ability to do so reflects on the quality of senior leadership.

No sooner had I stopped reflecting that Dr. Rainer Esser, the Managing Director of a German newspaper, Die Zeit got up to bat. Homerun! In a recession year their sales went up, their profits are up, their circulation is up! No small feat. The German newspaper market is extremely competitive. The Die Zeit success has nothing to do with luck. Their leadership team seems to pull off one innovation after another:

• Column duels between a highly conservative and a highly liberal editor.
• Recruitment of Helmet Schmidt the ex-German Chancellor as the Managing Director.
• Over 100 live events. Many on college campuses with editorial staff and guest speakers to build their brand.
• Passion for their customers that extends beyond surveys to in-depth interviews.
• Significant digital exposure including website, numerous blogs, etc.
• Based on the strength of the brand, a successful merchandising program.
• A “weekly” reader for use in the school system not only for educational purposes, but to build a relationship with newspapers.

When I asked Dr. Esser to single out the most important element of his newspaper’s success it was the leadership team. They spend time debating new ideas, new business models, and new ways of delighting their customers. Dr. Esser even hinted at some frustration with the countless hours devoted to new ideas. But, at the end of the day, he says, it was well worth it.

Dr. Esser was spot on. Any industry has room for innovation with the right top team in place. A team that can dream, a team close to customers, and a team, most of all that thinks ‘why not’—rather can not!

Rich Wellins is senior vice president at Development Dimensions International (DDI).

Man on the Moon

By Rich Wellins, Ph.D.

Recently I had an opportunity to hear Gary Hamel speak, which ranked right up there as one of my top five ever. That’s saying a lot after three decades of listening to management gurus. Gary, a Harvard professor, talked about his new book, Competing for the Future. You can read a great summary of his recent thinking in a Harvard Business Review article called “Moon Shots for Management.”

Some of Gary’s moon shots:

• Eliminate the pathologies of formal hierarchy.
• Reduce fear and increase trust.
• Redefine the work of leaders as architects of innovation and collaboration.
• Empower the renegades, disarm the reactionaries.
• Make key decisions based on the collective wisdom of the entire organization.
• Share the work of setting direction.

While I listened to Gary I could not help but think, no way!  I could not think of any corporation that truly embraced more than a very small handful of his moon shots. That is, until last week when I met Johan Dennelind, the CEO of DiGi Com, one of Malaysia’s leading telecoms.

A tall, blond, blue-eyed Swede, he almost seems out of place with 2,000 plus Malaysians. What blew me away was his relentless focus on culture. Almost everything went back to culture; talent and culture, strategy and culture, innovation and culture. I asked him how much of his time he spends thinking about culture. His answer: all the time!
Just a few examples:

• The building was designed with clear glass purposefully to reflect transparency.
• All titles were eliminated (even Johan’s) to reflect equality.
• Levels went from 16 to just 6 to reduce hierarchy and foster empowerment.
• All space was open.  No walls or cubes.  Employees sat at large worktables with 6-8 colleagues and could move from day-to-day.
• Signals of the importance of constant and shifting change include hour glasses installed on the wall.
• There are forums for associates to get involved in all aspects of the business.  For example, regularly scheduled free-flows allow employees to work directly with the CEO on critical issues, like embracing the customer experience.

I could go on and on. DiGi Com’s business transformation was led by a cultural transformation. And, it paid off with substantial sales gains!

Rich Wellins is senior vice president at Development Dimensions International (DDI).

Good Leadership . . . Always in Style

By Rich Wellins, Ph.D.

Well, I now have read my 40th white paper, monograph, research bulletin on leading during the “tough times”. I even wrote a few myself. Let’s be relevant! Let’s really talk about what is unique to leading now.

I have become a skeptic. Below are a few tips from a senior talent management professional in one of the 10 largest companies in the world. As you read through the statements, ask yourself is the tip “relevant” today.

• “Tell my team I am confident in their ability to succeed.”
• “Explain how work contributes to the broader strategy.”
• “Celebrate progress.”
• “Be highly visible.”
• “Encourage team members to surface their ideas.”

And, best of all:

• “Exercise, sleep and eat healthy.”

Of course every statement is relevant. All matter during these challenging times. Now, do me a quick favor. Go back to the list and ask yourself if every one of these tips applied 2-3 year ago, during periods of growth and stability.

My answer, every one matters as much yesterday as well as it does today. Good leadership, in this case, seems to be the same. What is really different about leadership today? I have many of my own thoughts but I’d like to hear yours first. And, if we all come back to this blog some day in the near (I hope future) when things are turning around, let’s not forget the tips above.  And, let’s not write yet another set of drivel about leading in an upturn!

Rich Wellins is senior vice president at Development Dimensions International (DDI).

CRM, Styrofoam Peanuts and Talent Decisions

By Rich Wellins, Ph.D.

Last week I was on a flight from Atlanta to Pittsburgh, seated beside a sales manager leading a team tasked with selecting the company’s new Customer Relationship Management system. The team had been on it for six months. His PowerPoint® deck was over 70 strong. No lack of analysis here. The new CRM software had a hefty $5 million price tag.

The next morning I read an article from Chief Executive magazine “The Costs of CEO Failure”, discussing how CEO turnover is costing the U.S. economy $13.8 billion a year, not including lost shareholder value, caused by mistakes, failed strategies and organizational upheaval. Imagine the cumulative cost of mistakes one or two management levels down where there are hundreds of senior managers in an organization. 

So, reflecting on our CRM story, many companies devote less than 1/2 of 1% of the time and resources in making senior manager selection or promotion decisions as the CRM team spent making their new platform decision. We run into companies that use the nine-box method (a matrix to assess performance and potential) for their high po’s. The problem is that the boxes are filled with light-weight, fluffy Styrofoam peanuts, not real, solid data. In making any internal or external senior leadership promotion decision, it is just plain malfeasance not to use more due diligence. Some things to consider:

• Are you stacking your candidates (internal or external) based on both current performance, and their ability to handle new responsibilities?
• Are you using multiple sources of data—like performance appraisals and ‘personality’ instruments—as well as management opinions?
• Is your process led by a talent management professional who can help guide you through these critical decisions as well as provide objective “second” opinions?

We sometimes hear that a process for senior leadership decisions is ‘too expensive.’ In the words of Edward Lawler, noted leadership guru at UCLA: “Decisions about people should be made with the same rigor, logic, and precision that are applied to decisions about capital investment, products, technology, and physical assets. To do anything less is to risk creating an organization that cannot perform effectively.” 

Please share—how rigorous are your talent decisions?

Rich Wellins is senior vice president at Development Dimensions International (DDI).