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Committee Members: Jay Potter Chuck Loudermilk Doug Bennett Stacy Mower

Committee Members: Jay Potter Chuck Loudermilk Doug Bennett Stacy Mower. Grow and Develop People August 2007. Grow and Develop People - Charter. A team will develop an assessment of BCG’s organizational development action plan across the organization by addressing the following:

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Committee Members: Jay Potter Chuck Loudermilk Doug Bennett Stacy Mower

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  1. Committee Members: Jay Potter Chuck Loudermilk Doug Bennett Stacy Mower Grow and Develop PeopleAugust 2007

  2. Grow and Develop People - Charter • A team will develop an assessment of BCG’s organizational development action plan across the organization by addressing the following: • Assessment of basics (citing current initiatives & plans): • find and attract the right talent • retain high performers and high potentials • develop and grow people • Bench strength by functional area • Competitive position vis-à-vis key competitors • 3-4 key issues affecting our ability to improve

  3. Background • Merillat and Texwood developed as “Mom and Pop” Organizations • As of 2001 only rudimentary people processes were in place • These processes were sufficient for the businesses early on • Some Programs Have Been Put in Place • Structured Hiring Processes • MBP’s and Performance Appraisal Process • Succession Planning • Competitive Compensation Program • Peoplesoft (HRIS) • Employee Self-Service • Manager’s Desktop

  4. Assessment of Current State • Scope of Discussion has Been Limited to Salaried Employees • Find and Attract the Right Talent • We do find high quality individuals BUT • Process takes too long and we have few choices • Burden falls on hiring manager to drive the process • Negative factors may be location and compensation structure • Limited MASCO-wide visibility and coordination • Develop and Grow People • Performance appraisal requires input from manager and employee • No follow up mechanism • Fragmented training plans and execution (no formal process) • Retain High Performers and High Potentials • Good retention of identified High Potentials and High Performers • Performance appraisal, succession planning, and appropriate rewards • Opportunity to identify and focus efforts on “steady” performers

  5. Bench Strength By Functional Area • High Potential Employee Definition: • A high potential employee is an individual with the ability, engagement, and aspiration to rise to and succeed in more senior, critical positions*. Specific to the Builder Cabinet Group, this individual has the potential to be promoted to a director-level position or higher, regardless of their current position level. • *Masco’s revised definition (11/2006)

  6. Chart and Analysis – High Potential Overall 55 of 1,137 (5%)

  7. Promotions By Area TOTAL: 174

  8. Organizational Training * Individuals accepted, MASCO re-evaluating program Gross training expense 2006 = $1.4M ($.5M in grants) Jan - Jun 2007 = $ .3M ($.4M in grants)

  9. Competitive Position • BCG Competes Across Industries for Talent • Developed Survey to Query Professional Level Employees Hired in the Past 18 Months • 111 of 160 responded (69%) • Key Takeaways • Majority have been satisfied with BCG • Very vocal minority with strong negative feelings • On boarding / orientation processes are sporadic or non-existent • Most important factors for candidates in evaluating job opportunities • Benefits (47%) • Compensation (25%) • Growth Opportunities (19%) • Compensation and benefits are not a strength • Formal flexible work options not offered, but culture of work/life balance not negative • Very mixed responses on performance management / career development – have growth opportunity but no process to execute

  10. Survey Results – Comp and Benefits Based on a survey of 111 employees hired in the past 18 months, July 2007

  11. Survey Results – Work Life Balance Based on a survey of 111 employees hired in the past 18 months, July 2007

  12. Survey Results – Hiring / On-Boarding Based on a survey of 111 employees hired in the past 18 months, July 2007

  13. Survey Results – Employee Development Based on a survey of 111 employees hired in the past 18 months, July 2007

  14. Survey Results – Decision / Satisfaction Based on a survey of 111 employees hired in the past 18 months, July 2007

  15. Key Issues • Limited Resources • Competing Priorities • Geography • Lack of Training • Organizational Design • No focused role for Organizational Development / Effectiveness • Communication / Medium

  16. Potential Opportunities • Organizational Development / Effectiveness Role • Focused Training Organization • Supervisory and Management Training • Performance Management • Interviewing • Facilitating and monitoring all training across the organization • Career Development Program • Effective Recruiting and On-Boarding Processes • Program to Drive Cross Functional and Geographic Moves • Enhanced Performance Management with 360 Evaluation

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