Time-to-Value Management

This is an exclusive document to the FlevyPro community - http://flevy.com/pro
Framework Primer
Talent-to-Value
Management
Presentation created by
Define
the Value
Agenda
Clarify
Critical
Roles
Identify
Talent
for Roles
Operationalize
and Mobilize
1 32 4

2This document is an exclusive document available to FlevyPro members - http://flevy.com/pro
Contents
Overview
Talent Management
Talent-to-Value Approach
Templates
The content on this page has been partially hidden.
FlevyPro members can download the full document here:
http://flevy.com/browse/flevypro/time-to-value-management-3363

This deck discusses the benefits of Talent-to-Value Management approach
in analyzing organizational value and employing top talent effectively
Presentation Overview
The best talent-related initiative likely to beat the competition is continuous reallocation
of high performers to most critical strategic roles.
Most leaders face difficulties in aligning their business and talent priorities. The process has several
disconnects—e.g., between talent and value—that proves quite costly. The identification of critical roles in the
company can get the executives to overlook some key positions that are vital for growth but are not so obvious
in the organization. The leaders often do not track roles that require a high degree of responsibility, strong
interpersonal and technical capabilities, and skills to promptly respond to customers’ changing needs. They
are unaware of any growing discontent in employee ranks with their jobs and there aren’t any succession plans
in place for mission critical roles that are not so eminent.
Identifying the true key talent and mission critical roles is a strenuous undertaking where most leaders
predominantly rely on their instincts to decide this. They mistakenly assume that most critical roles are always
within the top team rather than in the lower ranks. In reality, critical positions and people are present across the
organization.
This deck discusses the 4-step Talent-to-Value Management approach in detail:
The approach necessitates the leaders to link their talent with potential opportunities to create value. Utilizing
quantifiable metrics, the approach warrants the leaders to evaluate their entire organizations to uncover the
most critical roles in order for the top talent with suitable skills to fill the roles.
The slide deck also includes some slide templates for you to use in your own business presentations.
1 Define the Value Agenda
2 Clarify Critical Roles
3 Identify Talent for Roles
4 Operationalize and Mobilize

Contents
Overview
Talent Management
Templates

Placing the best people into the most important roles warrants a careful
analysis of where the organization really creates value
Talent Management – Overview
Top companies know that reallocating talent to the highest-value projects is an important
yet perpetual undertaking.
It is difficult for most leaders to link their organizations’ business and talent priorities. There are various
disconnects—e.g., between talent and value—that are costly, but not uncommon in most organizations.
The identification of critical roles in a company can
get executives to overlook some key positions that
are vital for growth but are not so obvious in the
organogram. The leaders often do not track roles
that require a high degree of responsibility, strong
interpersonal and technical capabilities, and skills to
promptly respond to customer’s changing needs.
They are unaware of any growing discontent in
employee ranks with their jobs and there aren’t any
succession plans in place for mission critical roles
that are not so eminent. When a high performer quits
the job, the move shocks the seniors, they rush to
cover temporarily and fill the post, and performance
suffers.
Getting to know the true key talent and mission
critical roles is an arduous task. Executives often
rely on the feedback of their peers and their instincts
to determine this, and mistakenly assume that most
critical roles are always within the top team. In fact,
critical positions and people can be present
anywhere in the organization.
Leaders should link their talent with potential
opportunities to create value by using quantifiable
measures to evaluate the entire organization to
uncover the most critical roles. They should define
crucial jobs with clarity so that top performers with
suitable skills fill the roles, establish succession plans
for each role, and reallocate top performers to critical
roles.
Source: Linking Talent to Value, McKinsey, 2018

There are stark differences in traditional Talent Management versus
the Talent-to-Value Management approach
Talent Management – Traditional vs. Talent-to-Value
Traditional Talent Management approaches have remained more focused on hierarchy, which defines the roles viewed as
most important. The Talent-to-Value Management approach, on the contrary, states that the roles that drive value are
found not only at the top management level, but are present across the organization.
Prompt key talent re-allocators to strategic positions are more likely to outdo their
competitors than slow talent re-allocators.
Hierarchy heavily influences which roles are viewed
as most important.
Within a hierarchical level, roles are assigned
similar levels of importance.
Role importance is linked to an explicit perspective
on value that can be created or enabled by role.
Not all roles in the same hierarchical level are
assigned the same importance.
TRADITIONAL APPROACH TALENT-TO-VALUE APPROACH
Critical role
New role
Non-critical
role
VS.

Contents
Overview
Talent Management
Templates

The Talent-to-Value approach is all about paying attention to which
investments take actions to match the right talent to strategic roles
Talent-centric portfolio companies meet all their first-year targets and achieve many times the return
on initial investment. Most successful portfolio companies manage their talent decisions with an eye
towards linking critical Leadership roles to the value they needed to generate.
The value-focused Talent Management approach demands reimagining how a company
generates value and then redefining critical roles and people who filled them.
Value-centric Talent Management approaches have been found to have a great impact on the people as well as
the bottom line. The challenge is how to codify the approach for linking talent to value.
There are 4 key steps to implementing a Talent-to-Value Management approach:
Define
the Value
Agenda
Clarify
Critical
Roles
Identify
Talent
for Roles
Operationalize
and Mobilize
1 32 4

The first step in linking talent to value is to carefully analyze the
company’s objectives and targets
Define the Value Agenda – Overview
The first step in linking talent to value is to define the Value Agenda by carefully analyzing our
organization’s objectives and targets.
The profiles of a firm’s current top talent not matching the ideal profiles of its future top
talent is often a dilemma that top management has to face.
Making out not only the overall numbers, but goals that are clearly
assigned to specific territories, product areas, and business units.
A detailed look at the divisions likely to grow, the impact that the
design and manufacturing innovation will have on all business
units, any international opportunities to take advantage of, and
digital capabilities.
Clearly laying out the attributes for success for the future leaders—
e.g., growth avenues, international environment, leading culturally
diverse teams, cutting-edge design and manufacturing processes,
impact of digital technologies on businesses, and adaptability to
unforeseen disruptions.
The defining the Value Agenda stage to link talent to value encompasses: Outlining value in
such a granular
manner allows for a
strategic discussion
on the roles that are
most significant and
the skills / attributes
required by the talent
who would fill those
roles. Most often than
not, these traits are
uncommon across
the current cadre of
leaders in a
company.

The next step entails identifying key roles in the organization
Clarify Critical Roles – Overview
It is vital to first isolate key roles rather than people—i.e., analyze where the greatest value
is and the skills needed to realize that value instead of listing top performers.
The second step in coordinating talent to value entails defining and computing the value of the most
important roles across the organization in numbers.
The critical roles are typically classified into 2 categories:
This approach is
about matching
talent and value
rather than focusing
on individual skills.
Value Creators – who directly generate revenue, lower
operating costs, and increase capital efficiency.
Enablers – e.g., gurus of support functions (like cyber security
or risk management), who perform key work that enables the
creators.
These critical roles are found often at obtuse places within the
organization—about 2 layers below, or even 3 layers or more below the
CEO. Overall organizational performance and health helps in the
identification of critical roles.

Specific articulation of role requirements enables an objective evaluation
of incumbents in the role and a clear criteria to select key people
Clarify Critical Roles – Role Clarification
Pinpointing where a critical role sits in an organization chart is not important—knowing the
potential results of any given role really matters.
Where does the value come
from?
Which roles are most critical?
Is there a need to add new roles
in line with the new strategy?
Any major disruptions that might
shift role responsibilities?
Charting the most critical roles necessitates
answering the following questions, in
coordination with the HR team:
The next actions in the process involve:
Mapping the potential financial value to each role using the “projected 5-
year operating margin” metric. “Value creators” should be assigned the
full economic value of their business’s operating margin whereas “Value
enablers” be assigned a percentage of value based on judgment of their
relative contribution to the relevant operating margin combined with an
analytic perspective on which value levers those functions influenced.
̶ The process helps the leaders identify 100 critical roles across all
business units and corporate functions.
The senior Leadership (CEO, CHRO, and CFO) needs to then filter the
list to identify 50 high-value roles—since it is hard for a CEO to
remember a bigger number, and secondly because the top 25 to 50
roles usually deliver the majority of a company’s value. The CEO
should keep an eye on the hiring, retention, performance management,
and succession planning of these critical roles.
The top management with the help of business unit heads should create
“role cards” for these top positions. Each card should specify the role’s
mission, key tasks, a checklist of what is needed to capture the role’s
share of value, and specific KPIs.

After the definition of value and clarification of critical roles, the next step
is to find the right people for those roles
Identify Talent for Roles – Overview
Finding suitable people that match the value-linked role requirements is essential for the
growth of an organization.
The third step in Talent-to-Value management involves the business leaders to find suitable people
for the clearly defined key roles.
Organizations that take a more robust approach to identifying the right
people realize two significant benefits:
This search process
for identifying the
right talent for our
critical roles should
be far more efficient
than the traditional
“high potential”
talent reviews.
Ascertaining the value and roles offer objective comparisons between
candidates across a variety of dimensions rather than relying on
subjective instincts. This approach to talent hunting is a strong
evaluation of specific evidence.
Specific role requirements foster a more objective view of incumbents.
̶ Careful assessment of incumbents against value-linked role
requirements leads a company to realize that around 20 to 30 % of
those in existing critical roles are not well matched.
̶ This data driven process reveals insights about the incumbents that
are not suitable for the future demands of the job, and the
significant value that is at risk by leaving such incumbents in place.

Identification of right talent for critical roles also yields unexpected value
Identify Talent for Roles – Unexpected Value and Breakthroughs
The effort to match talent to value lead the top executives to a deeper understanding
of their business.
Linking talent to value generates unexpected benefits over time—e.g., viral uptake of a product or a new
service delivering breakthrough customer experiences that disrupts competition—not anticipated in the
strategic plan.
Matching talent to value often leads to
breakthroughs. These innovations happen in
environments purposely established to enable
them—e.g., Tesla’s culture of fast moving
innovation or Apple’s user-experience focus.
Cultural priorities are at the center of the
companies’ Value Agendas. The roles created
to turn such priorities into value are often
related to R&D and filled with creative people.
The linking Talent-to-Value process should
do more than just put the best people in
critical roles. This could justify the need to
reorganize Leadership development and
develop expertise and mindset of future
leaders in the new roles to accelerate
breakthrough innovation.
Once a new value source surfaces, the company’s perception of its value outline changes to extract the potential
of this new source—but this needs a parallel shift in the company’s talent plans.

The fourth step of the Talent-to-Value management process is about
managing the roles utilizing critical metrics
Operationalize and Mobilize – Overview
Data-driven and technologically enabled talent reviews ensure that the HR provides
targeted support through value-centered Talent Management.
Once the critical roles have been identified and matched with the right talent, leaders must manage
these roles as dexterously as possible using specific key metrics.
Companies that
demonstrate the required
precision in matching
talent to value, their HR
teams develop
automated data
dashboards to track key
metrics for critical roles,
and follow progress on
operational and financial
KPIs against training
activities—e.g., a course.
The HR heads should hold monthly meetings to identify trends across business units,
analyze changes in peoples’ performance in critical roles, and to manage any real-
time talent issues. Organizations need to regularly evaluate if their HR team is
managing talent as effectively as required, by deliberating on the following questions:
Is this individual delivering the value expected?
What interventions (for instance, coaching or better-aligned incentives) can
support this individual?
Does the HR has appropriate analytics capabilities?
Is the department able to mine data to hire, grow, and retain the best people
more effectively?
Do the HR business partners internal service providers, or are they good
coaches ensuring a high return on human capital investment and driving results
for the external customer?

Talent Management and overall strategic planning should go hand in hand
Operationalize and Mobilize – Talent Allocation
Organizations must learn to deploy the new capabilities acquired by finding the best people in critical
roles to harness value constantly.
Companies that adopt value-centric Talent Management are better poised to achieve growth
by understanding their future talent requirement to meet goals.
Defining the critical roles is also a
dynamic process that should be
reanalyzed with any change in
strategic priorities.
The executive Leadership
team should actively
participate in the Talent
Management process.
The companies identified as
fast talent allocators are those
where business leaders meet
at least quarterly to review
talent placement as exhibited
here.
Frequency of talent-allocation review
% of respondents (n = 628)
No systematic review
At least quarterly
1 or 2 times a year

Contents
Overview
Talent Management
Templates

Insert headline
Traditional Talent Management vs. Talent-to-Value Management – TEMPLATE
Insert bumper.
Critical role
New role
Non-critical role
TRADITIONAL APPROACH TALENT-TO-VALUE APPROACHVS.The content on this page has been partially hidden.

Insert headline
Talent-to-Value Approach – TEMPLATE
Insert bumper.
Define
the Value
Agenda
Clarify
Critical
Roles
Identify
Talent
for Roles
Operationalize
and Mobilize
1 32 4
• Insert filler text, filler
text, filler text, filler
text.
text, filler text.
text, filler text.
text.
text, filler text.
text, filler text.
text.
text, filler text.
text, filler text.
text.
text, filler text.
text, filler text.

Insert headline
Talent-to-Value Approach – TEMPLATE ALTERNATE
Insert bumper.
Define the
Value Agenda
Clarify
Critical Roles
Identify Talent
for Roles
Operationalize
and Mobilize
1 2 3 4
text, filler text, filler text.
text, filler text.
text, filler text.
text, filler text.
text, filler text.
text, filler text.
text, filler text.
text, filler text.
text, filler text.

Insert headline
Insert bumper.
Define the
Value Agenda
Identify Talent
for Roles
Clarify
Critical Roles
Operationalize
and Mobilize
1 3
2 4

Insert headline
Insert bumper.
Define
the Value
Agenda
Clarify
Critical
Roles
Identify
Talent
for Roles
Operationalize
and Mobilize
1 32 4
text.
text, filler text.
text, filler text.
text.
text, filler text.
text, filler text.
text.
text, filler text.
text, filler text.
text.
text, filler text.
text, filler text.

Download 100s of similar frameworks from the
FlevyPro Library:
https://flevy.com/pro/library/frameworks

Need more frameworks? Download our Complete Business Frameworks
Reference Guide, a 350+ slide compilation of 50+ frameworks, on Flevy
The Complete Business Frameworks Reference
Guide is a best selling document on Flevy. It is 350+
slides--covering 50+ common management consulting
frameworks and methodologies. A summary is
provided for each business framework.
The frameworks in this deck span across Corporate
Strategy, Sales, Marketing, Operations, Organization,
Change Management, and Finance.
This reference guide is great for those who need a
refresher on common frameworks, as well as be
introduced and learn new useful frameworks.
You can find this document here;
http://flevy.com/browse/business-document/complete-
consulting-frameworks-toolkit-644

Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com

1
Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com

Time-to-Value Management

Recomendados

Recomendados

Más contenido relacionado

Más de Flevy.com Best Practices

Más de Flevy.com Best Practices (20)

Último

Último (20)

Time-to-Value Management