On Selection and Future Commercialization

Content Owner: John Callender

TRIP REPORT John Callender Mar. 12, 2001


BIGBY,HAVIS & ASSOCIATES – Dallas-Mar3.

BHA is a 28 person, $5MM firm offering consulting and computer/web based testing.
They market a cognitive ability /personality system (ASSESS) which can be used for
selection or development. Cognitive tests are Watson-Glaser and Raven's Matrices.
The personality tests were developed in-house. Two-thirds of BHA's employees are
designers and programmers. BHA's strategy is to grow by adding to its product line-
and several are close to completion. Example: Job Tango is a process to help people
judge their fit to the personality demands of different types of jobs. BHA has job
requirements profiled from their knowledge base. The person assesses themself on
those same characteristics and compares their profile with the various jobs. It's a sort
of realistic preview that could be very useful in a career search process- or for a
career assessment service within a job board.


I was interested in BHA's potential to help with our commercialization. They are
NOT in the business of hosting other people's tests on their website, but they have
excellent qualifications to web-ize the delivery and scoring of a test for us, and
offered to price tests (eg, Plant Tech) upon our request. BHA would not be a potential
customer for a Licensing arrangement.


DOW-Houston- Mar 5

DOW has a single, Globally integrated employee information system based on
PeopleSoft to which they are in the process of adding workforce planning tools. Their
purpose is to support HR people who work with business teams on staffing and
organization planning. Their system includes tracking training courses completed and
reasons for turnover.


The planning tools come into play after a business has defined a 3-5 year plan and
begins dealing with what the future state of staffing will need to be. The planning tool
is then used to evaluate hiring mixes needed to get the right numbers in the right skill
groups and job levels for the future state. It has already helped one dept. avoid over-
recruiting in the experienced market. The system factors in assumptions about
retention, promotion rates, and hiring (entry, experienced), to forecast enrollment in
some detail, including job levels, length-of-service profiles, and other demographics
of the organization. The same employee system can generate historical rate data and
current enrollment information, down to work groups as small as 30 or as large as the
whole company, as a basis for informing key assumptions.


Our GBS Employee Data group might find this system of interest for further
benchmarking.


INTERNATIONAL SELECTION AND ASSESSMENT COUNCIL- Houston- Mar.
5,6

Attended by AT&T,Anheuser-Busch,Dow,IBM, Sears. Cancelled at last minute-
Ford, State Farm,

Sempra Energy, Motorola.



Commercialization. I outlined the tests we have to commercialize and got reactions to
the test-market website.

IBM expressed the most interest- they want to increasingly use biodata screening
methods. Some had difficulty with the multi-company site concept, driven by the idea
that they did not think their recruiters would understand the value of allowing
someone attracted to their company's website to be given a chance to apply to some
other company too. This still leaves two viable ways to operate. 1)An independent
recruiting service provider COULD logically provide the multi-company entry point-
either as an additional entry point to the company's own site- or as the only entry
point for a company without its own recruiting website. 2) A person coming through
a company website does the assessment only for that company, without the
assessment result being shared with any other company. We need to allow for option
(2) because it likely reflects how many recruiters think today. I believe companies
that continue to force students through a multiple application scenario (to get to other
companies) will risk becoming less desirable than the enlightened companies who
allow multiple applications no matter how the student got to that point. But they can
figure that out later if we are right.

Until then they could use the External MultiCompany route, or the Apply -Only –To-
My- Company- From- My –Company- Website route, or both.


I reviewed the Plant Tech Tests DOW may want to "rent" with their Global
Workforce Planning Director.

He was impressed by the quality and relevance of the tests to their needs. They do not
have final approval for the Global Plant hiring program they want to start next fall,

but are optimistic it will be coming. We should proceed with a DOW CDA so we
could send materials as needed. (I didn't leave any).


Outsourced Testing PSA eliminates this problem for campus hiring, however it is
worth mentioning some arrangements others have in case other types of testing (eg,
Plant Tech) are considered for outsourcing. AT&T began using AON/Assessment
Systems Inc. (Philadelphia) when HR reuced from 2400 to 600 in AT&T. Operating
in 200 locations, ASI gave 100,000 tests for AT&T last year. AT&T has been
generally satisfied and feels the costs, which work out to $700 per hire, are
competitive. (Total costs per hire mentioned were $1500 for nonexempt and $3500
for entry-level mgt.) They also use Convergys to give a phone call simulation test at
$60 per test.

DOW outsourced all US nonexempt testing to Lanngehan Henning Inc. (New
Orleans).- used to hire 300 last year. They typically have 50 applicants per job filled
due to high paying plant jobs. Though generally satisfied, DOW is reconsidering
AON/ASI and Manpower. They previously talked to and rejected Kelly. Need to
check this further as we consider DOW's interest in "renting" our Plant Tech tests for
the Global hiring program.

SEARS uses Assessment Solutions Inc, (Chicago) to administer a sales test requiring
a role play at $65 per test.


Computer Delivered Tests AT&T has been pleased with computerization of their tests
done by Neil Kingston.

State Farm has done a lot of computerization via a full time technician who
learned/applies relevant technology


(discussed prior meeting). Believe Ford may have used AON to computerize tests.


High Potential Employee Identification.Sears gave a detailed account of their process
which is based on an add-on nomination form integrated with annual performance
reviews. Dow also does not use testing- has nomination process operated by
Functions who have responsibility for staffing/career planning.IBM is exploring use
of an assessment center process. $800,000 quoted by one consultant to create an IBM
assessment process. AT&T had used assessment center for development feedback,
but has stopped.


Applicant Tracking Systems Dow switching to RecruitSoft from PeopleSoft. Sears
uses PeopleSoft. IBM moved from Resumix to PeopleClick, will switch again to
Intronet. Have IBM contact in New Zealand to learn more about Intronet.


Next Meeting Tentatively Oct 8-9, AT&T, Basking Ridge NJ.



John Callender