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Chapter 6 Talent management - An HR challenge 139 CASE STUDY but learnable, system. They must be taught and quickly. The rigorous travel schedule Objective: To understand the role and value of employees are on travel three weeks out of talent management within an organisation four) often leads to burnout and job churning, and annual attrition is 22 percent Developing talent at Kyphon and Triage getting workers up to speed quickly on the In this environment, time is the enemy, and - different but similar company's system is vital to business success. Introduction Triage tackles this through continuous training new associates are taken out of the field about Unlike the leaders of many Silicon Valley start- one week per month to receive ongoing ups who dream of being acquired by a big player instruction. so they can cash out, Richard Mott, CEO of Similarities certainly exist between Triage Kyphon Inc., believes his company can emerge and Kyphon. Both companies face an equally as a giant in its own right. In fact, Mott and his pressing need to train and develop employees, board see almost limitless opportunities for and both companies tackle that need effectively. growth for the Sunnyvale, Calif. company - but (Kyphon fills 44 percent of its management only if it can put workers with the right skills positions through internal management into the right jobs. promotions. In 2005, Triage filled all vacancies That may be easier said than done. Kyphon's from within.) skill needs are both specialized and broad. For Yet both organisations train and develop example, the company has long relied on workers in ways that are different, and that are salespeople (called spine consultants) who are tailored to their specific business models and so well trained on its patented device for concerns. correcting painful spinal conditions that they can, in turn, teach surgeons what the product is - and how to use it in the operating room. Kyphon In addition to training employees on these Three years ago, when Rich Mott took the reins specialized skills, Kyphon also needs to develop at Kyphon, the company - now six years old workers with a vast array of more commonly had morphed from a fledgling start-up fueled found skills - such as operations, accounting con dreams and enthusiasm into a publicly and:HR. The company has rapidly outgrown its traded company poised to become a global. infrastructure and without such skills in place, player: Bat manageraent had not caught up, had further growth will be hampered. As a result, not upgraded its administrative structure or employee learning in a number of areas is vital clearly articulated its culture and values. for the organisation's continued growth and We succeeded up to that point in spite of ourselves, says Art Ferdinand, manager of Farther north, in San Francisco, Patricia Lee R&D, who has been with Kyphon from the Hoffman faces a similar challenge. Lee-Hoffman beginning. The company had no mission, vision sa founding principal of Triage Consulting or strategic plan. Group, a company that helps hospitals identify Among Mott's first priorities was. and recover outstanding medical insurance implementing-ar strategy and articulating a payments. New employees leam the company's vision that would attract and develop the custom process and techniques for identifying leadership talent Kyphon required and such funds, then travel extensively around the encourage those leaders to stay with the country to put the practice in use at client sites: company for the long haul. The challenge for Triage: Workers can't walk But when Mott looked to his chief HR officer in the door knowing the company's specialized, for help, he ran into a problem: He didn't have success. 140 CONTEMPORARY ISSUES IN HUMAN RESOURCE MANAGEMENT 3e Chapter 6 Talent management - An HR challenge 141 one. 'We had a hard driving sales force, but no management or anything else that would help foundation, no executive structure - HR prepare me, they'd let me do it. I do the same for included that could take us to the next step, my direct reports. he recalls. In addition, training opportunities are With world-class companies like Hewlett- proving to be a powerful recruitment and Packard (HP) and General Electric models, retention incentive. 'Given our growth path, Mott established the position of vice-president individuals who want to advance can see of HR and hired former HP executive Steve promotions within a year," says Ben Murdock, Ham to fill the role. Ham had broad experience director of sales operations. Murdock began as in HR and specialized expertise in training and a marketing intern in June 2000 right out of development, and he had demonstrated a wide Bates College in Maine. He has moved up the range of executive competencies as chief ladder steadily, working in the field as a sales operating officer for the now-defunct women's trainee, salesman and sales manager before American Basketball League. assuming the director role. Ham was a key element in Mott's strategy, "You get opportunities quickly, much faster one in which HR would play a central role. than with other companies in our industry," he "When you're in a business like ours, the HR says. 'Because we're growing so fast, our hiring dynamic is incredibly important, Mott says profile is one where we're willing to take people 'Education -- training and teaching others - are with drive, passion and develop them. key elements of our culture. It's a consistent More than three-quarters of Kyphon's sales theme. If our organisation doesn't continue to managers came up through the ranks, and, with evolve and develop, it will fail. a sales force that is expected to grow to 300 this year, more opportunities are certain. Anything Goes (Almost) Under Mott and Ham, Kyphon's flexible, open- Consolidating and Upgrading ended approach to employee development has When Ham arrived, HR was a bit player in become a highlight of the culture. The company talent development. Line managers developed values virtually any type of learning. From their direct reports on an ad hoc basis, deciding scientific training to lifestyle management, when to send them to outside training programs employees are encouraged to pursue knowledge or conferences. Sales, which hired almost half of in any format that suits them, in-house or the employees, was the exception: Its training outside, formal or informal. Support for learning was focused, tightly controlled and effective at extends to families of employees through a producing spine consultants who could educate dependent education reimbursement program and sell to surgeons, Kyphon's primary This year, Kyphon will spend $4,075 per customers employee on training, up from $3,200 last year. Under Ham, HR assumed responsibility for Erika Palmer, manager of R&D, who is a all Kyphon training, sales included. He instituted scientist by training, has been a beneficiary of a companywide talent review and succession this 'do whatever it takes philosophy. She has planning exercise, asking the vice presidents to been encouraged to take outside management assess their staffs and identify gaps where courses as well as internal ones. There's training or education would be beneficial responsibility on the employee to seek out looking out on one- and three-year horizons. opportunities, but support is also there from "Now every area has identified its high- management in helping you find what you potential (employees),' he says. "People were put need," she says. in buckets - those who are ready for promotion "The culture encourages personal develop now, those who need some time and those who ment,' agrees Maria Jenkerson, supervisor of do not appear to have the potential.' operations. "If I need courses in finance, budget Also, early on Ham created the position director of employee development. To fill that administrative staff can experience the same spot, he recruited Steve Gerhart, who had been miracles that spine consultants see in the field. running an employee development program for He has placed all in-house training under the McKesson Corp., a Fortune 15 health care and umbrella of Kyphon University. information technology company. Courses, which usually last one day or less. Gerhart found the caliber of the sales training are open to everyone. People are more likely to "fabulous, 'a veritable how to case study. Easing attend if a program is in-house and (they can any anxiety over a potential turf battle, he complete it in an hour or so,' says Christina announced his intention to build on sales Catuanao, director of manufacturing, successes by extending aspects of the training to Among the offerings in what promises to be the entire company an expanding curriculum: interviewing, situa- What made the sales training so special? tional leadership and emotional intelligence. In Personalized and continuous, it favoured an addition, Gerhart has continued to encourage integrated approach - mentoring, classroom managers to build personal education and instruction and fieldwork. Spine consultants, all development plans with their reports, supporting hired with medical device or pharmaceutical tutoring.coaching, travel to conferences, outside sales backgrounds, are given reading materials seminars and the like. and are tested on those materials to ensure that Catuanao, for example, encourages all of the they all have the same knowledge base. Once 70 workers she supervises to include courses in they pass the test, they receive two weeks of their development plans. 'Some do; others intensive classroom training in sales, product choose not to. The important thing is that they training and spinal conditions - such as injuries, know the opportunities are out there." diseases and the like. Then they travel in the Jenkerson, for one, seized the training field with a supervisor for a few weeks and opportunities given to her, with excellent results. finally are assigned to their territories. Within her first year at the company, she took Monthly, a manager travels their territory to supervisor and project management courses mentor them, offering feedback. At various offered by the American Management intervals they return from the field for classroom Association in San Francisco. She has also taken training in management or advanced sales. courses in interviewing and emotional Gerhart was impressed by the spine intelligence through Kyphon University. "Who consultants passion. He wondered if there were would think that in less than two years, I'd be Ways to replicate for other employees what the supervising operations she asks. I'm a great spine consultants experienced daily in the field. example of development. "Kyphon's mission more tangible for us, explains Brad Paddock, vice president of sales, "We see the patients, often interact with them in Triage Consulting Group the recovery room. We see them in debilitating In contrast to Kyphon, which hopes to build pain, unable to move. One hour later, they're loyalty and long-term commitments, Triage's pain free. I've been in the recovery room where employee life cycle is considerably shorter. Most a patient has cried and said, "I can't believe it; employees view it as a good place to be for a you've given me my life back." while, but not for the long haul. Our business model is based on churning, Integrated Training hiring large numbers at the entry level and True to his word, Gerhart, an able consensus replacing them when they leave three or four builder, consolidated and innovated. He began years later,' explains Jeff Coolican, a manager. by making the comprehensive sales, product The 200-person company has a relatively flat and science orientation available to all staff. He structure: six principals at the top, 23 managers found ways to bring patients on-site so reporting to them, 52 'senior associates' (fully 142 CONTEMPORARY ISSUES IN HUMAN RESOURCE MANAGEMENT 3e Chapter 6 Talent management - An HR challenge 143 trained consultants) below them, and more That was the design. 'We time the training to than 100 associates at the entry level. match their experience level, so they'll learn Of all new associates, 70 percent make it to what they need to do to function on a project,' senior associate; those who leave tend to pull says Josh Kobal, a manager. "We break it up out a year or two after reaching that level. because if we throw too much at them it won't Why do they leave? 'People go off to do cool stick.' things like graduate school or medical school, says Dan Phippen, a manager. Peer Instruction For the Triage business model to work, the All modules are taught by Triage staff, most company has to get entry-level associates up to only a few years removed from the trainees. speed rapidly, then retain them long enough to 'I like that the training is done by senior justify the investment before they move on. An associates who have been here for at least two additional challenge is identifying and training years,' says associate Emily McMahon. "They select senior associates for manager slots and know what they're talking about but aren't so eventually preparing them to become removed from us. It's encouraging to know that principals. in 20 months, I'll be where they are.' Many consulting firms ship trainees off-site Getting Worker Bees in the Field for three weeks of intensive classes, then they're Beginning associates come in with a blank slate. done. Triage prefers the longer, combined They need to master quantitative skills and gain module/field approach. working knowledge of health care issues. We recognize that a lot of training will take "There isn't anything that Triage does that place on-site and want to get them out there as anyone has any idea about when they come out soon as possible so they're not overwhelmed of college,' says senior associate Kristi Davis. 'I with information that they can't relate to, had no idea about co-pays, the medical jargon Phippen says. was a mystery. 'When you go to training, you learn New associates also need training on how to something you've never seen before cope with difficult interpersonal situations. remember parts, forget parts. In the field, yo When they go into the field, they find money see something and it triggers the training in that their clients overlooked - a situation that your mind. Sometimes you go into the training can breed resentment from staff at client and you already had the experiences three companies. Coping with that resentment can be weeks ago. The senior associate took you through a recurring issue, say associates. it on-site; then the module reinforces it. You get To help new associates develop the skills they a mix of both. need, Triage conducts regular group training sessions. Each month or so, new hires are Promotion Hook assigned to cohorts of 10 to 12 for orientation. Promotion is the carrot that keeps most During the next 21 months, they return together associates in the fold. They know up front that if to complete 15 formal training modules. Initially they stick it out for 21 months, they'll be the modules focus on the nuts and bolts of being promoted to 'senior associate with a salary consultant. Later, there's more on project increase and a chance to run their own project. management skills. The format is interactive, 'It's appealing because of the opportunity to featuring PowerPoint presentations, case studies move up,' says McMahon. It's not a dead end; and teamwork. promoting everyone gives you so much We've got the same experience level but motivation.' work at different sites, Davis says. It makes us 'When I look at what my peers are doing out comfortable when we ask questions. There's real of college, the fact that I'll be running my own camaraderie. project, supervising people, responsible for profits in 21 months seems pretty quick,' agrees client is dealing with, Lee-Hoffman says. associate Brian Friedlander. And I'll only be 24. Attendees do not earn an MBA, but they do receive a certificate when they complete the Prescribed Training program. Under Lee-Hoffman's lead, the company provides an estimated 100 hours of training Building the Senior Team annually for each employee. Unlike Kyphon, Continuing education for senior associates and which values learning in general, even when it is managers occurs at quarterly meetings, where not directly linked to the business, Triage needs outside experts brief staff on critical business to focus on training that is immediately job and health care issues. In addition, Lee-Hoffman specific - particularly for entry-level workers. conducts 'next generation' leadership training Not only must the company get these workers for Triage's 23 managers, all former senior up to speed quickly before they leave, it also associates, preparing them to make the jump to faces greater competition for market share than principal . (So fr no one has made it.) She leads Kyphon and must stay more focused on skills workshops and brings in outside experts generating immediate revenue. to assist, stressing the practical. Perhaps it's not surprising, then that outside "We're having people deal with case studies training does not receive unqualified support at that relate to our work," she says. "What do you Triage. Looking to pursue an outside degree? If do when a senior associate is in trouble? How you have time, which is unlikely, you'll have to do you make a toast? How do you make a do it on your own. Though Triage principals speech at a retirement party?" write effusive graduate school references, they Overall, Lee-Hoffman believes Triage's discourage associates from attending. They programs are unparalleled in depth and quality, believe school is an unnecessary diversion, that Thiere's reason to believe she may be right. the real-life experience associates are getting on Clearly her passion for education is a major the job is preferable factor: *I never wanted to stop being trained; In-house training, however, is another that's why I do it," she says: "You need someone i matter. Partially to encourage staff to extend who loves to learn in charge. It wouldn't be fun their tenure after achieving promotion, Triage for me unless I saw this talent develop, offers seasoned senior associates - those who have minaged at least three projects the Questions and activities opportunity to enroll in an on-site Mini-MBA 1. Wat lessons did Steve Ham, Kyphon's program vice president of HIR, leam at Kyphon Offered by faculty from the University of 2. What characteristics would you say California at Berkeley and designed specifically, Kyphon and Triage share regarding the for Triage, it's divided into eight sections; each development of talent at their respective runs for two days. Topics include the U.S. organisations! bealth care system, negotiations and social responsibilities SOURCE: GROSSMAN:RI.2006. Developing talente: Hirmagiovane, $1(1940-16, January Used with permission The idea is to give them a more well-rourided health care background so they know what the RSS Vio w