Talent Management Overview of framework, …

1 Talent Management Overview of framework , processes and tools - 2 - Catalyst Consulting The Perfect Talent Storm Skills shortage - Cost cutting vs closing the skills gap The economic crisis Different expectations - generation gap, making space Identify & develop Talent early Restructuring, downsizing, cost Management vs retention Globalisation and access to information Employer of choice EVP? Manage succession risk Ageing workforce High turnover of key Talent Employment equity & diversity Engagement studies With organisations today operating under unprecedented conditions of competition and turbulence, it is increasingly difficult to attract and retain talented employees and scarce skills positions.

2 It is therefore imperative that during these times, organisations develop a purposeful process for sourcing, attracting, engaging, managing, developing and retaining key Talent . People have become the key differentiator in today s knowledge-based economy . - 3 - Catalyst Consulting - 3 - The sports analogy helps us understand how important Talent Management is for high performance and winning in a competitive world. Each of these aspects are required to build a successful sports team. Early identification of young Talent through watching for ability & attitude. Training and development to full potential and teamwork.

3 Paying enough to retain but building commitment through relationships. Ensuing sufficient bench depth. Create opportunities to stretch & shine. Right skills in right positions to balance team strength. Good managers and great coaches. Making tough decisions when individuals lose their edge - 4 - Catalyst Consulting What we typically experience when we ask staff about Talent Management Not credible Not transparent - 5 - Catalyst Consulting Talent Management objectives Understand and develop the required standards of performance and behaviour at each level Understand the mission critical positions and skills required now and in the future Identify and develop high potential employees.

4 Grow competent future leaders able to deal adeptly with complex business issues. Meet current and future technical and professional skills requirements. Retain and engage key staff with critical or core skills. Attain employment equity targets and avert skills shortages. Ensure effective organisational resource planning. Harness the potential and creativity of all employees and empower every individual to optimise their career and learning potential Effective Talent Management ensures operational continuity and sustainability by ensuring that the right people, with the right skills, are in the right job, at the right time to ensure successful business results.

5 - 6 - Catalyst Consulting Talent Demand and Supply Talent Management is the holistic and integrated Management practice of balancing the demand for critical skills with the supply of critical skills in both the short-term and the long term. TM includes the proactive identification, planning, attraction, development, retention and monitoring of both the supply and demand of critical positions and key Talent . Positions (Demand) Identification and filling of mission critical positions (MCPs) that are critical to the on-going operations of the business. This impacts on productivity, delivery and cost.

6 Supply Finance Operations CEO Mission Critical Positions Scarce Skills Talent PoolPopulation Broader Employee GroupHighPotentialLowLowPerformanceHighD ifferentiation of TalentHigh flyers Key players Underperformers TM complements the existing HR processes such as recruitment, skills development and performance Management . TM assists with more focussed development activities for key Talent , mission critical positions and ensures proper succession planning for these positions. People (Supply) Identification, sourcing, development and retention of key individuals who are considered to be of such critical importance to an organisation, that the risk of turnover warrants targeted activities to engage and retain them.

7 - 7 - Catalyst Consulting 2007 Talent Management needs to be seen as one of the 5 major Strategic Business Imperatives 2. Business Plan 1. Strategic Management 3. Budget Review 5. Talent Reviews 4. Performance Reviews - 8 - Catalyst Consulting - 8 - Talent Management framework Effective Talent Management ensures operational continuity and sustainability by ensuring that the right people, with the right skills, are in the right job, at the right time to ensure successful business results. - 9 - Catalyst Consulting Talent Strategy Talent Management requires a strategic approach to balancing business challenges, organisational capability and people capability.

8 Annual reviews need to take place Strategic skills sourcing, Mission Critical Positions, Scarce Skills and well as identification of any additional strategic Talent challenges. Every few years, the Talent strategy should be reviewed to ensure alignment with the business strategy and that there are plans to ensure organisation has sufficient capability to meet demand in the long term Talent Management Talent Management includes the on-going co-ordination, Management and monitoring of all Talent Management activities. This is the role of HR. Talent Management activities include setting Talent goals and measures, clarifying roles and accountabilities, ensuring processes and tools are in place that are aligned with other HR policies and processes, building capacity for implementation and monitoring and reporting on Talent Management activities and statistics Talent Forum Talent is best managed through a series of Talent forums that meet at least annually to discuss and make strategic decisions regarding Talent .

9 The Talent forums are responsible for giving input and validating the identification and categorisation of Talent , succession plans and development plans for mission critical positions . The Talent forums also discuss and make decisions on strategic recruitment, development or retention requirements impacting the business. The Talent forums work together with line managers and Human Resources to ensure agreed decisions and actions are implemented. Talent forums are held at different levels of the business ensuring Talent pools and critical staffing issues are identified at each critical level and communicated upward ultimately to the most senior Talent forum.

10 Talent identification & succession Talent identification includes the identification of mission critical positions and the categorization of high flyers, key players and under-performers using the 9 box matrix and the Leadership Pipeline. Additional segments can be specified depending on business requirements. Succession planning involves matching the identified individuals with future potential positions and creating Talent pools for certain key levels and disciplines. The succession plans will drive the differentiated development and retention of Talent to ensure readiness when a position becomes vacant.