bbootthh33..iinndddd 330066 1100//3300//0099 44::5566::2255 PPMM PRAISE FOR BEST PRACTICES IN TALENT MANAGEMENT “Many times when one reads about best practices from other organizations, the writing misses a critical and necessary foundation required for the content to be meaningful and relevant. In this book, Carter and Goldsmith bring a valuable contribution and that is to ask their readers to step back and consider their own context fi rst and then determine how any of these outstanding talent management actions can make a difference in their particular organization. By culling for the principles behind the choices made, the stories revealed in these outstanding cases, the reader gains insight and practical advice.” -Teresa Roche, vice president and chief learning offi cer Agilent Technologies “This century, talent management will contribute to shareholder value creation more than any other organizational discipline. However, it remains an elusive concept. This book brings value to any CEO or HR leader by providing specifi c examples of effective talent management.” -Geoff Smart, CEO of ghSMART, and co-author of the New York Times bestseller Who: The A Method for Hiring. “Good story-telling is part art and part science. Louis Carter knows that and he shows this knowledge by his ability to gather an array of critical stories about organizations who have heeded the wake-up call to take action in the critical arena of talent management. My hat is off to the Best Practice Institute—this book lives up to its name!” -Beverly Kaye, Founder/CEO: Career Systems International, co-author, Love ‘Em or Lose ‘Em: Getting Good People to Stay “As a long-standing business philosopher, I look for depth, foundations, root causes, and lasting answers; for that, facts, information, experiences and testing—and a solid data base—are essential. The compendium I needed I found here—and so will you!” -Peter Koestenbaum ffffiirrss..iinndddd ii 1100//3300//0099 44::4488::1188 PPMM About This Book The purpose of this best practices handbook is to provide you with the most current and necessary elements and practical “how-to” advice on how to implement a best practice tal- ent management program within your organization. The handbook was created to provide you with a current 21st century snapshot of the world of talent management today. It serves as a learning ground for organization and social systems of all sizes and types to begin attracting, retaining, and motivating top talent through more employee- and customer- centered programs that emphasize consensus building; self-, group, organizational, and one-on-one awareness and effective communication; clear connections to overall business objectives; and quantifi able business results. Contributing organizations in this book are widely recognized as among the best in organization change and leadership development today. They provide invaluable lessons in succeeding during crisis or growth modes and economies. As best practice organizational champions, they share many similar attributes, including openness to learning and collaboration, humility, innovation and creativity, integ- rity, a high regard for people’s needs and perspectives, and a passion for change. Most of all, these are the organizations that have invested in human capital, the most important asset inside of organizations today. And these are the organizations that have spent on average $1M on talent management, an average of $2M over the course of their programs, with an average rate of return on investment of over $5M. Within the forthcoming chapters, you will learn from our world’s best organizations in various industries and sizes: Key elements of leading successful, results-driven talent management; Tools, models, instruments, and strategies for leading talent management; Practical “how-to” approaches to diagnosing, assessing, designing, implementing, coaching, following-up on, and evaluating talent management; and Critical Success Factors and Critical Failure Factors, among others. Within each case study in this book, you will learn how to: 1. Analyze the need for the specifi c talent management program; 2. Build a business case for talent management; 3. Identify the audience for the program; 4. Design the program; 5. Implement the design for the program; and 6. Evaluate the effectiveness of the program. ffffiirrss..iinndddd iiii 1100//3300//0099 44::4488::1199 PPMM BEST PRACTICES IN TALENT MANAGEMENT How the World’s Leading Corporations Manage, Develop, and Retain Top Talent M A R S H A L L G O L D S M I T H A N D L O U I S C A RT E R , E D I T O R S ffffiirrss..iinndddd iiiiii 1100//3300//0099 44::4488::2200 PPMM Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved. Published by Pfeiffer An Imprint of Wiley 989 Market Street, San Francisco, CA 94103-1741 www.Pfeiffer.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifi cally disclaim any implied warranties of merchantability or fi tness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profi t or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet websites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read. For additional copies/bulk purchases of this book in the U.S. please contact 800-274-4434. Pfeiffer books and products are available through most bookstores. To contact Pfeiffer directly call our Customer Care Department within the U.S. at 800-274-4434, outside the U.S. at 317-572-3985, or fax 317-572-4002, or visit www.pfeiffer.com. Pfeiffer also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Best practices in talent management: how the world’s leading corporations manage, develop, and retain top talent / Marshall Goldsmith and Louis Carter, editors. p. cm. Includes bibliographical references and index. ISBN 978-0-470-49961-0 (cloth) 1. Executives—Training of. 2. Executive ability. 3. Leadership. 4. Employee retention. I. Goldsmith, Marshall. II. Carter, Louis. HD30.4.B483 2010 658.4'07124—dc22 2009036634 Acquiring Editor: Matthew Davis Director of Development: Kathleen Dolan Davies Production Editor: Dawn Kilgore Editor: Rebecca Taff Editorial Assistant: Lindsay Morton Manufacturing Supervisor: Becky Morgan Printed in the United States of America Printing 10 9 8 7 6 5 4 3 2 1 ffffiirrss..iinndddd iivv 1100//3300//0099 44::4488::2200 PPMM For Crissy ffffiirrss..iinndddd vv 1100//3300//0099 44::4488::2211 PPMM ffffiirrss..iinndddd vvii 1100//3300//0099 44::4488::2211 PPMM CONTENTS Introduction, by Louis Carter xiii Acknowledgments xxvii How to Use This Book xxix CHAPTER ONE: AVON PRODUCTS, INC., BY MARC EFFRON 1 Introduction 2 A Success-Driven Challenge 2 The Turnaround 3 The Talent Challenge 3 Execute on the “What,” Differentiate with “How” 4 From Opaque to Transparent 5 From Complex to Simple 7 From Egalitarian to Differentiated 10 From Episodic to Disciplined 11 From Emotional to Factual 12 From Meaningless to Consequential 13 The Results of a Talent Turnaround 14 Measuring the Talent Turnaround’s Success 15 CHAPTER TWO: BANK OF AMERICA, BY BRIAN FISHEL AND JAY CONGER 17 Introduction 18 Leadership Development Activities for Executive Leaders 21 Lessons for Designing On-Boarding for Executive Leaders 32 CHAPTER THREE: CORNING INCORPORATED, BY RICHARD A. O’LEARY, GARY JUSELA, AND HEATH N. TOPPER 36 Introduction 37 vii ffttoocc..iinndddd vviiii 1100//3300//0099 77::0033::0000 PPMM viii Contents The Business Case for the Accelerated Development of Corning Program Managers 40 The Design Flow: Two Weeks of Experiential Learning with an Interim Period of Coaching and Mentoring 48 Outcomes and Next Steps for Growing the Talent Pipeline of Program Leaders 56 Next Steps 57 CHAPTER FOUR: CUSTOMER AND ENTERPRISE SERVICES (CES) DIVISION, BY MICHAEL SCHECTER, JOHN PARKER, AND JUDY ZAUCHA 60 Business Background and Challenges 61 The Roots of the CES Transformation: Leadership and Process 62 Diagnosing and Designing the Whole System Transformation: The Leadership Alignment Event 68 Implementing the Whole System Transformation: The Waves 71 Supporting and Reinforcing the Whole System Transformation 77 Evaluation of the CES Whole System Transformation 82 CHAPTER FIVE: ECOLAB, INC., BY ROBERT C. BARNETT, MICHAEL L. MEYER, SARAH J. MURPHY, AND SUSAN M. METCALF 84 Introduction 85 Company Background 85 Ecolab’s 2002–2007 Strategic Plan 85 Culture Is Critical 87 Ecolab’s Talent Management Philosophy 88 The Ecolab Talent Pipeline 90 The Importance of Individual Development 90 Introducing the Talent Pipeline Model at Ecolab 95 Supporting Successful Implementation 95 Keeping the Pipeline Full 98 Results 100 Conclusion 101 ffttoocc..iinndddd vviiiiii 1100//3300//0099 77::0033::0011 PPMM