People Equal Competitive Advantage

Tuesday, April 28, 2009 - by Rex Davenport

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With more than 17,000 employees in multiple lines of business in 40 countries around the globe, Mercer approaches talent management systematically in an effort to develop talented individuals to meet current and future business needs. Deborah Wheelock, head of global talent management for Mercer, spoke with Learning Executives Briefing.

Learning Executives Briefing: Can you tell us a bit about your career arc?

Deborah Wheelock: I have been with Mercer for a long time - 18 years, which is a long time to be with one company in this day and age. I started in corporate finance, but I came to that job through a project management background. I moved into what was then called professional development and conference planning. I found that it was an area that I really enjoyed. We began looking at using a learning management system, so I took responsibility for that project. And, as is often said about managing a project like that, you either get fired or you get promoted. I got promoted. It started as a Mercer project, but it eventually expanded to our sister companies in MMC.

While the LMS project was underway, we were globalizing the learning function, and a global learning group was formed. I began to focus on e-learning when it was a fairly new modality for most companies. As part of an HR reorganization, we formed centers of expertise around internal communication, reward, staffing, and talent management. Every time I have wanted to try something different at Mercer, I have raised my hand and Mercer has given me that opportunity. I have worked in the same general area, but I have had a lot of different challenges. It has been interesting, and I have never felt like I needed to go somewhere else to get that next experience or opportunity.

LXB: What is Mercer's overall learning philosophy?

Wheelock: When it comes to our overall approach, we want to make sure we are giving people the right developmental opportunities at the right time in their careers. That's not a mission statement as much as it is a blinding flash of the obvious. Creating and engaging a workforce to meet the objectives is what talent management is about. I don't think you can make that statement without looking at learning and development. And because Mercer is a professional services firm, our only source of competitive advantage is the quality of our people. I don't know if you could call it a learning mission statement, but we often use the tag line: "You are the business. Grow it."

To support this we have partnered with our own workforce sciences and human capital business to conduct an internal labor market review, which we have done periodically over the years. We are currently awaiting the results and recommendations from that review. The results of that analysis will provide metrics that will guide our learning investments and choices. It is always difficult in training to point to hard numbers - but we know this review will demonstrate the impact of our talent policies and practices. It will reveal what the impact of those polices have been on things such as promotion, speed of career progress, and retention of high performers. We wanted those hard numbers - to have our suppositions borne out by data; and to use the data to make critical choices.

The last time we conducted this study, we didn't have our LMS deployed globally, nor did we have a substantial amount of data in the LMS. Now we have global, longitudinal data that will allow us to look back over the past five to seven years, which will make this a much more robust study for us.

LXB: Are you expecting any surprises?

Wheelock: This review will show which programs have positively affected the workforce. With the economy being what it is, we may have to make hard decisions about what learning and talent management programs we develop and offer. The data will allow us to make smarter decisions.

LXB: What key measurements will you look at as being the most critical?

Wheelock: We are looking for the correlation between how much training a person gets and how well they perform and if certain programs are more impactful than others. If we have put people through a particular category of training - project management for example - do they advance through career levels in the firm at a more rapid pace than people who didn't receive the same training? Or do they tend to be rated higher in our performance management system? We can't say that training is the only reason why a person might progress or be more commercially successful, but with this type of data, we can show it to be one of the factors.

LXB: Have those factors changed or been modified? Are you measuring the same things today that you were a few years ago?

Wheelock: They are pretty consistent. In a professional services firm, client billings and profitability are fairly standard measures. What has changed recently is we have refreshed our behavioral competencies. The stated expectations we have of our people are more in step with what the marketplace is demanding.

LXB: Are you talking about softer skills?

Wheelock: We are talking about both. We have a core set of behavioral competencies that apply to everyone across the business. Those are things such as communication skills, adaptability, developing business, and managing others. Then there are technical or business-specific competencies.

LXB: What has been your experience with your learning management system?

Wheelock: We had primarily begun searching for an LMS as a means to pro-vide better management reporting around learning and we were just getting started with e-learning. Just the ability to have this information in one place and not having to cobble together a bunch of disparate Excel spreadsheets was great. That sounds pretty basic now but almost 10 years ago that was the way it worked. We successfully launched our LMS in 2000 and it now is available in seven languages. In 2003 we added per-formance management to the platform. Having synergy between our performance and the learning systems is very helpful to managers and employees.

LXB: Can you describe succession planning at Mercer?

Wheelock: Succession planning at Mercer is a deliberate and systematic effort to ensure leadership continuity in critical positions and encourage individual advancement. Succession planning involves defining the needs for critical positions and identifying which employees should be developed to fill these positions in the future. To support this process, we use proprietary enabling technology - Mercer Executive Talent Management (ETM) - that helps us make data-driven talent decisions. The technology integrates with all our systems - HRIS, LMS, and others.

Individual managers assess their direct reports against behavioral competencies, a leadership profile (if applicable), and an experience profile. This assessment is captured in ETM and used during a talent review when the managers meet to review the aggregated data. They debate the talent map, which gives them a comparative view of people's potential. Typically, the focus is on the people who we want to retain and grow, and the discussion is about what we are going to do to develop them in role and capability. Information about capability gaps, both individual and organizational, are fed to our learning experts so they look at trends and make informed decisions about future training needs. During a talent review, retention risks are also identified, and the management group, as a whole, assumes responsibility for keeping those people engaged and retained.

Overall, the point is for a group of managers to be accountable for helping their people progress in their careers and, in some cases, to move up the leadership ladder. People will be in different stages of development. Some are ready for promotion, while others are in the right role for them, while others are showing promise that needs to be tapped. We have to provide development and learning for all of these groups. Even with the resource challenges we may have this year, I think we're doing that effectively by emphasizing the different learning channels - selfinitiated, from others, on the job and in classroom, and by getting more deliberate about mentoring.

LXB: So cost is always an issue?

Wheelock: Yes, how we choose to invest must always be a careful and (hopefully) a wise decision. This year presents few challenges and I would expect that both time to participate in formal development and actual training dollars will be debated. In a few weeks I will be getting together with part of my team to brainstorm and plan for the near and longer term. What learning can we deliver at low cost, or no cost? What content can be converted to virtual learning? How do we make the most of what we have and make sure we're hitting the key needs? Are there new solutions we should be developing?

We are a global team and so we have challenges ourselves. We can be test pilots for new technologies that help the firm to operate in new and more cost effective ways. For example, we have made good use of wikis this year. We keep trying different methods to make sure we harness our brainpower and then see how those methods might be leveraged to the firm. My team has some really great ideas that we plan to build upon.

LXB: What do you want to know about learning organizations in other companies?

Wheelock: I am always interested to know what other companies are doing to future - proof their organization. It is easy to get focused on quarter-to-quarter results and make decisions based on short-term budget requirements. Our clients need us now and they will need us in the future. What knowledge and skills are our people going to need to support our clients and their career growth, and ensure shared success? I'm sure many of my colleagues in other firms are wrestling with these questions as well. It would nice for us all to be able to look into that crystal ball today and create the learning strategies and approaches that will be needed for tomorrow!

People Equal Competitive Advantage

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