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Unlocking the Science of Talent Management

Predictive Performance Analytics. Unlocking the Science of Talent Management. How Do We Apply Total Quality Management (TQM) and Six Sigma Standards To Create Talent Quality Sales Management (TQ Sales M)?. Beyond Benchmarking & Competency Studies to Actuarial Standards.

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Unlocking the Science of Talent Management

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  1. Predictive Performance Analytics Unlocking theScienceof Talent Management

  2. How Do We Apply Total Quality Management (TQM) and Six Sigma Standards To Create Talent Quality Sales Management (TQSalesM)?

  3. Beyond Benchmarking & Competency Studies to Actuarial Standards PredictiveAnalyticsfor Talent Management: We Need A Change in Mind Set 3

  4. The “C” Suite Relies on Predictive Analytics TQM focuses on finding sources of error and eliminating them • ISO and Six Sigma are modern refinements of TQM • The Six Sigma error rate is 3.4 times in every 1 Million Actuarial Sciencefocuses on the “Law of Large Numbers” • It is critical for measuring and predicting highly complex issues: • Actuarial Research is based on: • Very large samples (100,000+) • Over long periods of time (10-50 years)

  5. Sales Example: Applying TQM to Sales: TQSalesMTM ABC Company: 200 Salespeople and $200M in Sales* The Traditional Approach to Sales “Benchmarking” $104 Million $2.6M/person $90 Million $750K/person Consultants Recommend: Study the techniques of the top 20% and train the middle 60% *Performance averages based on over 900 sales forces evaluated by Chally over 35 years

  6. The Result ABC Company: 200 sales people and $200M in Sales $90 Million$750k/person $104 Million $2.6M/person ABC Company: 200 Salespeople and $200M in Sales = $204.5 Million Total Sales $104 Million $2.6M/person $94.5 Million Improving their performance by a typical 5% each... only produces 2.25% improvement in sales

  7. $90 Million = $218 Million Total Sales $114 Million $90 Million $104 Million $104 Million $4M/person Applying TQSalesMTMto Selection & Alignment ABC Company: 200 Salespeople and $200M in Sales = $200 Million Total Sales = $223.7 Million Total Sales $119.7 Million Reassigning or replacing the bottom 20% with just “average” If wenowtrain the rest of the sales force and get a 5% gain, we get an additional $5.7 Million competency levels will increase production by a minimum of 9%

  8. Applied TQSalesMTM to ABC Company Process and tools used: • Statistical failure analysis of poor performers • Identification of minimum salesperson and manager skill requirements • Predictive selection and alignment system installed • Talent Audit and inventory of potential for all performers across all key skills • Targeted training and manager monitoring and coaching process • Annual gap analysis of actual performance versus potential • Process adjustment • Annual statistical and qualitative turnover analysis

  9. Results in Millions 30%

  10. What's Different About This New Approach?

  11. Comparison of Descriptive versus Predictive Talent Management Assessment Metrics

  12. TQM Increases Selection Effectiveness and Reducing Turnover Using a TQSalesMTM Statistical Check versus Traditional Descriptive “Competency” Benchmarking Key requirements: • Limited focus on identifying and describing successful employees(the logical part) • Maximum focus on eliminating sources for selection or promotion failures (the profitable part) • Separating “qualifying” criteria from “selection” criteria (another profitable part)

  13. False Leader “Criteria” Found with TQSalesMTM Missing in Many Top Performers Present in Many Weak Performers GoodPredictors Job Requirement X Organized & Methodical X Good Written Communication Skills X Describing and Finding Winners Feels Logical Identifying & Eliminating Failure is Profitable Detail Oriented Willingness to Learn the Business Ability to Direct and Control Others Willingness to Accept Responsibility Initiative X Practical IQ & Analytic Ability Decision Making Efficiency X Politically Astute P & L Conscious

  14. The Science: Standardizing Talent Metrics • Sample Enterprise Wide Talent Audit

  15. Can include as many people across as many skills or positions that are considered critical to manage Any Position can be expanded to analyze individual skills in depth

  16. Talent Audit Applications • Identification of high potentials • Assessing individual promotability • Prioritizing group training needs • Succession planning • Reorganization • Right sizing re-alignment • Merger and acquisition planning • Training and development investment analysis • Team building and development

  17. Talent Audit – Lessons Learned Over 400 sales force audits conducted with organizations representing 65,000+ sales force incumbents Only 19% of effective new business developers are effective at maintaining long-term customers Less than 15% of farmers are comfortable hunting Nearly 65% of salespeople who fail could have succeeded in the right type of sales position for their skills 60% of sales position failures are related to individuals with the wrong skills for the position Less than 15% of superstar salespeople succeed in management Nearly 70% of strong inside service people are effective at maintaining customer relationships

  18. Thank You For Your Kind Attention

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