THE 10 BEST PRACTICE AREAS OF WORLD CLASS TALENT MANAGEMENT Best Practice Institute June 14, 2006 Dr. John Sullivan Author, Professor & Advisor to Management www.drjohnsullivan.com

BMW HP B of A Siemens Cisco Baxter Intel Oracle Pfizer Sprint World Bank SUN Mc Donald’s Corp. Phillips Med Abbott Charles Schwab Mc Kinsey & Co J&J AOL Conference Board Macy’s Microsoft JP Morgan Ameritech Deloitte Consulting Marriott NIKE Transamerica PepsiCo MGM Grand Chevron/Texaco Morgan Stanley SC Johnson Starbucks Schering Plough Yahoo Texas Instruments KLA Tencor Nestle Stanford Hospital General Mills State of NC Valero Energy Lucent Google

Dr. Sullivan’s current books Rethinking Strategic HR (Published by CCH Inc.) HR Metrics - The World-Class Way (Published by Kennedy Information) Improving Productivity - The World-Class Way (Published by Kennedy Information) All are available at Amazon.com The Orientation Toolkit Available at DrJohnSullivan.com

Let’s have a conversation Please interrupt and comment… or ask a question at any time

The basic premise for my discussion is HR’s lack of aggressiveness in Talent Management … is hurting your bottom line business results Note: The $ impact approach we are covering today… was profiled in CFO magazine

Most Talent management is stealth

Talent management Sports Most hidden Magnet 80/20

What is the goal of talent management? And the goal is? What is the goal of talent management? - Right person - Productivity

Profit per EE $ spent can be 12x higher Do some HR depts. get dramatically more productivity from their “talent dollar”? (Revenue per Employee) Average $160,000 IBM $300,000 HP $500,000 Apple $617, 000 Cisco $700,000 Dell $1,000,000 Google $1,056,000 It takes 6X more people at the average firm to produce the same revenue as it does at Dell Profit per EE $ spent can be 12x higher

The 10 best practice areas of talent management Aggressiveness/ on a War footing Wells Fargo, Exploding orientation, Lawyer letter MGM/ 1st Merit raiding, Google college web page, Benchmark recruiting

An illustration of this new aggressive approach EA vs Radical entertainment (Now hiring in ASCII code )

The 10 best practice areas of talent management Proves business impact in dollars Work with CFO, Split sample, Change assessment, Change source, Agilent, First Merit vacancy, Ross, Make a profit HealthEast/ Wachovia 3. Employment brand, the only long term strategy Wegmans, Story inventory 365, BofA/MGM promotions, SW book/TV, Red Robin menu, Donald

Recruiting branding has changed – Have you?

The 10 best practice areas of talent management Proactive / continuous recruiting Seeks out opportunities– Who’s who, Most wanted, Turnaround SBU, External succession Booz, MS Business cycle 5. Referrals – Reference, Give me 5, Lily Rolodex 6. Sales / Marketing approach Would your recruiters be comfortable… Bar, My Space, trade show booth, buy Google words, Radical Press release, Nortel college

The “right day” sales approach 175 sent out and 130 responded

The 10 best practice areas of talent management World wide – Yao Ming, Dirk Nowitzki, India/ Nokia, Bankers wives at home Data driven – Valero, Best source, Google 300x, Prioritization /Mc D 35%, Why they reject offers Retention – Bad mgr, Challenge, Post exit, Block Competitive advantage – Do you have a Rec culture/Offer letter, first day… Do you have Comeback kids/Career mobility team, Do you have MS bus cycle, Lebron/ Kobe, Speed/prom

The 10 areas where you need to get a lot better! Aggressive/ War footing Proves business impact in dollars Employment brand Proactive / pre-need Referrals Sales approach World wide Data driven Retention Competitive advantage

Did I make you think. Provide you with some new ideas Did I make you think? Provide you with some new ideas? How about some more questions?