Buy, Build, Borrow, Redeploy, or None of the Above New Options for Closing Talent Gaps Dr. Mary B. Young, Principal Researcher, Human Capital, TCB 1 © 2015 The Conference Board, Inc. | www.conferenceboard.org Researcher Mary B. Young, D.B.A. Principal Researcher, Human Capital The Conference Board  Latest report: Buy, Build, Borrow or None of the Above  Leads TCB’s research program on strategic workforce planning and authored numerous reports on global human capital issues  Research featured in The New York Times, The Wall Street Journal, Time, Business Week, Workforce, HR Executive, CFO, NPR’s Morning Edition  Received her doctorate in organizational behavior from Boston University's Graduate School of Management 2 © 2015 The Conference Board, Inc. | www.conferenceboard.org Traditional HR Solutions for Closing Talent Gaps A. Buy (hire) B. Build (train and develop) C. Borrow (use contingent workers, consultants) D. Redeploy (send people to where the work is) 3 © 2015 The Conference Board, Inc. | www.conferenceboard.org HR Framework for Closing Talent Gaps Traditional HR Framework What’s New in This Report A. Buy • Hybrids B. Build  Buy and build  Build and buy C. Borrow • New versions of B,B,B,R D. Redeploy  Talent eco-system  Crowdsourcing  Talent communities • None of the above  Redesign process, jobs  Outsource work  Eliminate work 4 © 2015 The Conference Board, Inc. | www.conferenceboard.org Rather Than Jumping Immediately to Talent Solutions, Focus First on Organizational Capabilities Or, before you reach for your favorite hammer or screwdriver, engage business leaders in defining what they’re trying to build  A bridge?  A shopping mall?  A cabin by the lake?  An inlaid mahogany jewelry box? 5 © 2015 The Conference Board, Inc. | www.conferenceboard.org 1. What are the organizational capabilities we will need in the future?  Which current capabilities will we need to maintain, grow, or strengthen?  Which capabilities will become less important?  How long will it take us to develop the new capabilities needed?  What current capabilities can we leverage to develop those needed in the future? 6 © 2015 The Conference Board, Inc. | www.conferenceboard.org 2. What Are the Strategic Options to Build These Capabilities?  Demand: How would our workforce need to change to deliver our future organizational capabilities? (#, skills, experience, location, etc.)  Supply: What is our internal talent supply? Is external supply adequate?  Gaps: Where are the biggest gaps? Which are most important strategically? Which pose biggest risk? For which gaps is talent not a feasible solution?  B, B, B, or Redeploy Talent: Feasibility, costs and benefits  None of the Above Alternatives: Feasibility, costs and benefits  Do we really need to do this work?  Do we have to do it in the same way that we’ve done in the past?  Can we change our business processes, redesign our organization or jobs? 7 © 2015 The Conference Board, Inc. | www.conferenceboard.org What “None of the Above” Means  It’s not about turning down business leaders by saying, “HR can’t deliver.”  It’s about evaluating other alternatives and making a recommendation based on data (e.g., in this instance, talent isn’t a viable solution, or only a partial solution)  The HR person isn’t “just” and HR person but a business leader whose functional expertise is HR 8 © 2015 The Conference Board, Inc. | www.conferenceboard.org The Big Shift in HR’s Role HR’s role shifts from filling orders (“Hire 20 more sales people in China to meet next year’s revenue targets.”) to helping to shape business strategy. To do this, HR must be able to:  Assess the supply, quality, performance, and cost of talent and compare these across business units and locations and to the industry as a whole.  Deliver these insights in a way that business leaders understand and will use.  Understand the levers for managing demand, including those that lie outside HR’s traditional domain. 9 © 2015 The Conference Board, Inc. | www.conferenceboard.org Highlights of Case Studies L ockheed Martin Talent Communities / Talent Acquisition GE Global Talent Strategy Southern California Edison Workforce Analytics and Planning 10 © 2015 The Conference Board, Inc. | www.conferenceboard.org