Copyright © 2011 by The Hartford. Confidential. For internal distribution only. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford.

Talent Management as an Evergreen Process: A Case Study

Peter T. Church & Eric J. Hoeppner

October 2011

Copyright © 2011 by The Hartford. Confidential. For internal distribution only. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford.

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Company Overview

Founded in 1810, The Hartford Financial Services Group, Inc. (The Hartford - NYSE: HIG) is one of the nation’s

largest diversified financial services companies with over 26,000 employees worldwide.

The Hartford is a leading provider of Life Insurance, Group and Employee Benefits, Automobile and Homeowners Insurance and Business Insurance - as well as Investment Products, Annuities, Mutual Funds, and College Savings plans.

The Hartford serves millions of customers worldwide - including individuals, institutions, and businesses - through independent agents and brokers, financial institutions, and online.

After 200 years in business, The Hartford is known for its superior customer service and continued operational excellence.

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Organizational Transformation

From:

To:

The Hartford Financial Services Group

Property & CasualtyLife

Consumer Commercial Wealth

The Hartford Financial Services Group

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The Claim Operating Model

AccountabilityC

usto

mer

Claims Excellence is a continuous improvement

cycle.

TransparencyConsistency

People

Operational Excellence

‘08 ‘09 ‘10 ‘11 ‘08 ‘09 ‘10 ‘11

‘08 ‘09 ‘10 ‘11 ‘08 ‘09 ‘10 ‘11

‘08 ‘09 ‘10 ‘11 ‘08 ‘09 ‘10 ‘11

‘08 ‘09 ‘10 ‘11 ‘08 ‘09 ‘10 ‘11

Claim Quality Index (CQI)Claim Quality Index (CQI)

Customer Loyalty Index (CLI)Customer Loyalty Index (CLI)

Work Environment Index (WEI)Work Environment Index (WEI)

Cost / Claim ($’s)Cost / Claim ($’s)

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HR Delivery Model – An improvement opportunity

Tale

nt

Man

ag

em

en

t

Human Resources Business Partner C

om

pen

satio

n &

Ben

efits

Talent Acquisition

Employee Relations

Business Leader

Consulting

Ben

efits

Employee / Manager

Payroll

eWorkplace

Core Admin. Systems & Services

Service Delivery

HR

@W

ork

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HR Efficiency

HR Effectiveness

Human Capital Impact

Focus on Business Strategies and

Processes

Focus on HR Processes

Focus on HR Programs

Improve the decisions that depend upon or impact talent.

Our Vision

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BusinessBusinessStrategyStrategy

Org. & WorkforceOrg. & WorkforcePlanning ProcessPlanning Process

BusinessBusinessResultsResultsMeasure & AlignMeasure & Align

Evolving our model – The starting point

From:

To:

Copyright © 2011 by The Hartford. Confidential. For internal distribution only. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford.

Eric HoeppnerSeptember 29, 2011

Bringing the vision to life

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Why Talent Management?

Continuously improve risk management & service deliver by shifting from Process to Outcome focus driving greater ownership & accountability for results

• Strategic: VP Claims• Key: Regional Vice Presidents & Front Line Leaders

Execute & Report

Build Plan

Determine future workforce

Analyze current workforce

Segment workforce

Understand business strategy

• Change, risk management & forward thinking skills• 70 Front line leaders & 21 customer support resources• Claims excellence model, standards roll-out, QBR process• Restructure field & home office, establish customer support org.

• Talent management process• Front line leader development• Site change management process• Organizational design

• Uncertain about front line leader supply• Middle management depth• Pipeline not yielding talent supply to meet demand

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Talent Management Vision

• Establish an evergreen talent management

• Build greater depth and rigor

• Use data to drive our decision making

• Create a teaching environment

• Strengthen leadership oversight and accountability

• Integration with other key HR processes

Systemic Review

Talent Review

Turnover & Retention

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Talent Management Meeting Agendas

• 9 Block calibration cessions

• Pipeline health review

• Strategic talent deployment

Site Leadership

• Systemic turnover Issues

• Individual retention risks (9 block, etc.)

• Individual review

• Low & inconsistent player review

1 2

3

4

51a*

* 1a & 1b - reviewed with RVP

P E R F O R M A N C E

P OTENTIAL

1

3

2 & 5

1b*

Systemic Review Talent Review Turnover & Retention

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STEP 2 :

Leadership Pre-work

Pre-work Discuss/ Actions

What does the process look like in action?

Consolidate Monitor

Step 1: HR Preparation

Step 2: Leader pre-work

Step 3: Consolidation

Step 4: Leadership review

Step 4: Analysis & follow-up

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Implementation Approach

Q1 Q2 Q3 Q4

GBC

P&C

Claims Talent Management Team

P&C Claims Field Council

HR Training

HR Training

CAP(Claims Advantage Program)

Leadership retention risk?

Talent supply to meet demand?

Retention Review Process

Calibration Process

Pipeline Review Process

Talent Review Process

Replenishing supply?

Calibration ProcessTalent Review Process

Retention Review Process

Systemic Turnover ProcessLow & Inconsistent Review Process

2012 Plan:

Pipeline implications of evolving footprint?

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Managing the Pipeline

NY | GA | FL | MN | CA

Owner Funnels Frequency

VPRVP - LineAVP - Staff

MoM

Semi-Annual 23 100%

Population Target IFR

RVP Front Line Leader

Semi-Annual 9 | 23 | 11 | 21 | 10 100%

Director LTDIII Quarterly

2 | 12 | 7 |1 | 1Director STD / Leave Quarterly

2 | 17 | 8 |26 | 0

Alpharetta LTD III: 80 - 100%

Syracuse LTD III: 30 – 70%

Sacramento LTD III: 43 - 71%

MN LTD III: 90 – 100%

Maitland LTD III: 35 - 50%

TBD

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Building a sustainable “System”

• Sustainable process with job aids

• Training modules for business and HR

• Line of business and site level calendars

• Line of business and site level metrics

• Talent management targets as part of annual objectives

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New Process

Existing Process

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Reaffirmation of what we already knew…

• Most easily implementable when you’re addressing the business issues

• Unbundling of conversations addressed time constraint concerns

• Allowing flexibility with agenda enabled buy-in and on-going ownership

• Tying to operational / business calendar enabled sustainment

• Depth of calibration coupled with segmentation enabled new prioritization and measurement options

• Don’t need a system as long as you have solid processes in place

• The specifics may be different but the concepts apply across industries

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