CSTD Beijing Organization Development

Beijing, May 5th 2012

Content Introduction Objective and expectations What is OD? Why OD? What are the benefits? Top 100s Best Practices & Cases The China Practices: Misconception in the market place Why? OD - Where does it start? What does it link to?

*

Content Critical parts of OD Organization Structure and Processes Workforce Planning (Job Families and Role Competencies)Talent Management (Career and Succession management) Management Development filling the Gaps Top 100s Practices

*

All participants to learn about Organization Development:What is it? How is it being done? What to focus? Processes and Steps

Sharing the Best Practices and methodology Take away some tools

*Objective & Expectation

Your Expectations ODOD ODODOD 100OD, *

Question

What is the greatest challenge(s) that your Organization is facing today?

Is it Shortage of Talents? Is it Business Strategies? Or .

Quick Exercise:Take 5 minutes Discuss in your group/table Share findings with all *Greatest challenge(s) ?

Organization DevelopmentWhat is it? Why OD? What are the benefits of doing OD? Top 100s Best Practices -The China market place Misconception why?

Exercise:At your table / group Discuss for 10 minutes on What is OD? Include in your discussion: What does it include? How are you doing it? Do you have dedicated resources (team or individual) assigned to it? Where and how is it being initiated? Who is the owner?Are your senior leadership aligned to it? Representative report to big group*

What is OD?Organization Development is defined as:A systematic methodology that companies use to develop their organization structure and people based on their medium to long term business strategies (normally for periods of 5-10 years)This includes the consideration of the companies:Business Strategic PrioritiesProductsTarget MarketsCustomersSales ChannelsInternal Management CapabilitiesMarket Availability of TalentsEtc.

*

Why OD?Organization Development is critically important to companies. Given the abovementioned criterions, in order to succeed now and in the future, companies must:Be able to determine what kind of structure they need and management practice to match to itClear about what do they currently have and what is needed to achieve the business strategies in the future, including:How many?What kind?When?Where?As well the sources (i.e. internal or external) of these required Talents

*

Benefits of OD?Major benefits of OD are:Clearly Understand our current and future HR needs which in turn enable companies to maximize their Human Resources capabilities Minimize unnecessary wastage of man-power and enhance the efficiency of the HR $Anticipates up coming excess and/or shortages of required TalentsIdentify critical Gaps in Talent supply (both internally and externally) thereby establish strategic priorities to recruit, train, develop More..*

Top 100s Best Practices All Top 100s companies have an OD function and this is at their WW HQsMany of them are tied-in with MD (due to its close relationship)Both centralized and de-centralized OD operations are commonly found i.e. TOP down from HQ and regionalized OD operations in say GRC (Greater China), Latin America, Eastern Europe, Indian and South ASIA, etc.Recently, some of the Biggest Conglomerates re-structured their organizations and have their WW HQs relocated to ASIA e.g. GE in HK

*

The China MarketMajority of the MNC China operations are performing an MD function rather than ODMostly in response to HQs directionsFocus on Current issues / problemsTied to Talent Management and/or Succession/Career ManagementHR is lacking Capabilities due to inadequate business understanding, OD/MD function training, etc.Loosely or no linkage to business strategiesMinimal and/or no Senior Management involvement and/or support Etc.*

Organization DevelopmentOD - Where does it start? What does it link to? Typical Process

Critical parts of ODOrganization Structure and Management PracticeWorkforce Planning (Job Families and Role Competencies)Talent Management (Career and Succession management) Training and Development filling the Gaps

*OD The Starting Point & LinkagesOrganization Mission / Vision / Values / StrategiesLeadership &Top Team AlignmentOrganization Structure & ProcessesJob EvaluationGrading / LevelingJob Analysis/Role Clarification (KRA / KPI)EMPLOYEE ENGAGEMENT HR Policy and Procedure & HRIS

HARDWARE

SOFTWARE

Career Ladder or Job FamilyTraining / DevelopmentPerformance ManagementMD - Talent, Career & Succession PlanningReward Workforce PlanningOrganization CultureTarget Role CompetenciesIndividual & Role Competencies matchRecruitment & SelectionCOMMUNICATIONOrganization Development

Typical Process Derive from the Business Medium or Long Term Strategies (typically 5-10year plans), decide onOrganization Structure required, building on :Business Functions, geographic location, customer segmentations, etcOrganization Desired Culture and Role Competencies Work Processes decision on what kind of work being perform where?Overall Workforce Planning based on the aboveThen Talent Management review of what we have, do not have and define Training/Development needsThen Recruit or Train and develop .

*

Organization Structure and Management Practices

*Decision-making Process to develop an appropriate structure for your organizationClarify strategic intentDefine work culture and management practicesDetermine your customer segmentsIdentify core business processesEvaluate the basic options Check with a decision criteria3 more questions to consider

*1. Clarify Strategic IntentStrategic Objectives: what are the key outcomes your business must achieve in the marketplace? The strategic objectives should define success for your business relative to your customers, competitors, and stakeholders.

Critical Success Factors: what are the key things the business must get right internally in order to achieve its strategic objectives? The critical success factors should define the companys core competence that must be built from within to give it competitive advantage.

2. Define Desired Work Culture and Management PracticesWork Culture:How is work being done?Expectation of how our people should behaveHow we will treat our business partners i.e. customers, suppliers, etc.

Management Practices: Centralization vs De-centralization Where decisions will be made i.e. what work being done where?

*

*From Values... To Culture are an integral feature of our mission statement, which has already been rolled out worldwide, form the link to the new Leadership Principles, form the basis for a strong common corporate and management culture, are therefore essential for our success.

Management PracticesCentralized vs de-centralizedDecision levels and points:Set Direction and PolicyOrganization and Planning Implementation & ExecutionAdministration

*

*3. Determine Customer SegmentsTypical options for market segmentation include:

Type of customer or business volume (individual consumer; small, medium, large commercial customers)Type of buying pattern (standard, customized, integrated)Geographic location (city, region, country)Sales channel (web-based, telephone, in-person)Some combination of the above

*4. Identify Core Business ProcessesClassic Business Process Design

*5. Evaluate the Basic OptionsThere are 6 basic design options for any business

FunctionalProductMarket/customer segmentMatrixProcessHybrid

*basic design optionsTypically Used:Small organizationSimple product lineStable markets and productsEfficiency focusAdvantagesClear responsibility within functionsTechnical specialists are managed within a functionEfficiencies of scaleDisadvantages:Lack of accountability for profit/lossHarder to support cross-functional problem solving and coordinationHarder to develop general management experienceFunctional StructureProduct StructureTypically Used:Distinct products/services existProduct line volume allows for efficiency of scaleProduct technology distinctAdvantagesClear responsibility for product line successResources are managed within a product lineProduct expertise is developedGeneral management within a product line can be developedDisadvantages:Duplication of resources across product linesHarder to coordinate marketing of multiple products to same customerDifficult to obtain synergies(innovation, expertise, financial) across products

*basic design optionsTypically Used:Market/customer requirements vary greatlyDepth of knowledge of market segments criticalVolume exists within each marketAdvantagesMarket/customer knowledge and expertise can be developedProducts/services can be tailored to respond to market segment needEasier to coordinate delivery of product/service to customerDisadvantages:Duplication of resources across market/customer linesHarder to coordinate resource allocation across market segmentsDifficult to obtain synergies (innovation, expertise, financial) across market segmentsMarket/Customer Segment StructureMatrix StructureTypically Used:Both technical expertise and market/customer expertise requiredIntegration across functions and markets is requiredLarge scope and scale across products and markets existsAdvantagesIntegrates both technical expertise and market/customer expertiseTechnical resources can be flexibly allocated to project teams to serve specific markets Synergies can be realized across market segments Disadvantages:High degree of horizontal and vertical coordination and communication requiredHigh degree of management talent required to resolve conflicting prioritiesClarity of accountabilities and career paths required to maintain employee satisfaction

*basic design optionsTypically Used:Customer service priorityManagerial capability is mature to work across boundariesEmployee competence is highly developed to work across functionsAdvantagesHighly responsive to changing customer requirementsEmployees focused on clear accountabilities to meet customer requirementsCross-functional teams allow for broad employee developmentLean management Disadvantages:High degree of horizontal and vertical coordination and communication requiredMay require high degree of investment in information technologyHigh degree of leadership and employee competency requiredProcess StructureHybrid StructureTypically Used:Large marketsComplex productsGrowing customer baseDistinct business lines AdvantagesStructure flexibly designed based on product and market/customer requirementsDisadvantages:Harder to create clarity of accountabilities for profit/lossHarder for customers and employees to understand mission and vision of companyRequires high degree of management talent to integrate and coordinate resourcesDifficult to create clear career paths

*6. Check with Decision CriteriaSupports strategic intent of the businessSupports the desired work cultureReflects core business processesRepresents a logical grouping of functions and activitiesSupports effective interface with customers and marketsReasonable spans of control existReporting lines and relationships are clearLevels of authority are clear to support management control and decision makingEncourages effective employee communicationsResources are allocated efficiently

*7. More questions to answerWhat level of decision making authority do you want delegated?

How broadly do you want to define job accountabilities?

What is the existing management capability within the organization?

Workforce Planning

*Strategic Workforce PlanningLong-term business planWorkforce required to execute business planWorkforce currently in place and available in the marketWorkforce DemandWorkforce SupplySource/AttractDevelopRetainEngageContract/OutsourcePeople processes and programs3. Implement action plans to execute workforce strategy4. Optimize programs to drive desired behavior1. Project workforce requirements of the business plan2. Identify gaps and optimize workforce mix

*Strategic Workforce Planning is a process owned and leveraged by a range of people within HRIt is critical to target the project against specific workforce issues!How do I create a process and tools to determine the talent requirements of my business?What is the demand, supply and cost of talent?In what way do the assumptions impact the forecast?

As part of Total Rewards Strategy, what does our current and future workforce look like?What will be the cost of the programs?How do I design a transition strategy?What are the best locations for certain types of jobs?Have I maxed out in a certain market?How do I convert the long-term plan into an operational plan that can be executed?

Lines of Business/HRBPRewardsHeads of Staffing/ Workforce Planning

*The questions that companies are asking and evolving in sophisticationEnduring Areas of Business Focus

GrowthHow do I quantify the number of people I need?

Labor MixHow can I evaluate current state of types of workforce being used

Geographic SourcingWhat does the current state of key markets we operate in look like?

Tools and ProcessEnabling ongoing analysis and functions

HR CapabilityAttract, develop, engage and retain talent

Evolving Next PracticeBusiness Focus

Demand PlanningBased on business drivers, how do I forecast future talent needs? Labor OptimizationHow do I drive towards the optimal mix of full-time, part-time, contract or offshore labor?

Global SourcingWhat are the best locations to find available cost at the right cost?

Connected ThinkingAnalyze, deliver, measure and quantify across a range of areas

HR Business PartnerAssessment and development of systemic solutions from a BU and enterprise perspective*Sources: Towers Perrin best practices

Based on the questions from clients during 2006, significant upgrades have been made to all areas of the SWP offerMajor UpdatesMajor UpdatesNew FeaturesBrand New!*

Key Component of SWPClient IssuesWhats new?Workforce ScanHow does the workforce change in terms of headcount, cost or new employees?Turnover analysis to compare prior-year and current-year workforceExternal Labor ScanWhat do the demographics of my workforce look like compared to the available market? Should we consider alternative sourcing strategies?Expanded U.S. data and functionality, including Best Locations analysisNew global country dataModel templates for summarizing outputWorkforce Projection ModelWhat are the future staffing needs, demographics and cost of the workforce?Better connections to business planning, in particular for health care and energy companiesProjections of more data attributes, such as diversityMore robust scenario analysis, including contract labor vs. FTEs or maximum hiring capacityStaffing PlanningWhat are the operational impacts of staffing? How many recruiters will I need? What is the impact of internal transfers?New standard integrated application for operational staffing reviews focused on 18-month to 2-year planModeling of internal and external hiresRecruiting resources and budget requirements

*1. Workforce Scan: Mining current state PLUS turnover trend dataNew processes and online tool enable the loading of current data and prior year data to get automated reports on turnover segmented byBusiness unitLocationJob typePay gradeAgeGenderPayEthnicityReview of hiring, turnover and retirement experienceValue to clientEasy analysis and reports on turnover trend dataGiven cost of turnover of 0.5 to 1.5 or more of salary, analysis provides critical informationTurnover by Job TypeMajor UpdatesMajor UpdatesTurnover by Year of Service and Region

*2. External labor scan: U.S.For U.S., whole new upgraded interface that enablesSelecting multiple citiesViewing a range of statistics on cost, quality of life, education, language skillsBest locations analysis that allow you to sort on headcount, cost, diversity or overall rankingValue to clientAm I tapped out in my current geography?Is there a better place for this kind of work?As I think about acquisition, what are the local labor market issues?Major UpdatesMajor Updates

*2. External labor scan: New model reportsNew labor market maps that can be created by Tillinghast colleaguesUse for key jobs like technology, engineering, call center, nursing Can also be applied to internal data to understand recruiting zones and opportunities for improvementMulti-source data can be organized in model reports and charts to help compare locations in terms of being an overall market of choice vs. a great city for certain specific types of talentNew featuresOverall Market of ChoiceHighTech Market of choiceLowHighCity 2City 5City 7City 12City 8City 11City 4City 1City 10City 9City 6City 31234512345New FeaturesNew Features

*2. Global templates have also been created and new global data have been loaded into the toolsThe online tool has data for Canada, U.K., France and Germany on high-level availability and ethnic diversityMore data to come (Japan and Netherlands are next for the developed countries)Model reports help to summarize key output in decision frameworkGCG contacts Emma Carter and Melissa Marvan can help to compile data for developing countriesAvailabilityLowHighCostLowHighCity 1: U.S.City 2: U.S.City 2: U.K.City 3: U.K.City 1: U.K.City 1,: IndiaCity 2: IndiaCity 1: PhilippinesNew Features

*ExerciseYour client has just acquired a company that needs to centralize operations to a number of cities for IT positionsLook at the current workforce and turnover patterns by age, gender and years of serviceThe initial choices are Austin, Boston, Chicago and ParisWhat are the key pros and cons of each city?What other data do you need beyond what is in the tool? Where will you get the data from?What are the follow-up opportunities from this process?

*3. Translate business plan demand to workforce requirementsIn health care and energy, more case work and tools for the translation of business plan to headcount requirementsStandard interview guides for assumptionsAbility to model business drivers in online toolsValue to clientBased on changes in business volumes, what is the future staffing needed?How can I get business plan input on the future direction?

My outpatient caregiver needs are growing faster than inpatient needs I can align business with staffing volume driversNew Features

*3. Workforce projection model: Understand the future requirementsNew scenario capability to look atShort service, mid-career and retirements separatelyFTEs vs. contractMaximum hiring capacityVacanciesModifying hiring capacity to reflectPipeline of new graduate talentAbility to absorb and train new employeesValue to clientUnderstanding of future headcount, cost, demographics and sources of loss of talentEnables aligned strategiesRecruiting partnershipsOnboardingPhased retirementRewards work

*4. Operationalizing the forecast:Staffing Planning ToolFocuses on 18- to 24-month planEnables analysis of more operational aspects of staffing includingInternal vs. external hiresTime to fillTime to trainNumber of recruiters requiredExpected cost of hiringMonitoring of monthly projected versus actual staffing requirementsDiversity targetsIntegrated with the SWP suite of toolsDemos available onlineValue to clientCreates an operational view of long-range planning for the staffing groupProvides key ongoing measurement and targetsBrand New!

*What does a project look like?Review Business Plan and Workforce DataAnalyze and Model to Identify GapsDevelop Strategy and Road MapExecute and MeasureReview business plan and related headcount, skills and cost requirementsAnalyze and benchmark current workforce composition and costReview external labor market and trendsConduct leadership interviews

Review financial, customer and operational value driversPerform data mining to evaluate current state and define assumptionsConduct workforce supply and demand projectionsModel alternative scenariosEvaluate alternative labor mixIdentify and prioritize key workforce gapsAssess solution channels and relevant HR interventions via programs and processes Conduct Action Workshop to create HR strategy Identify solutions and develop detailed implementation roadmap

Implement changeMeasure outcomesEmbed ongoing tools and capability 1432Month 1Month 1 and 2Months 2 and 3Months 3 and 4Estimated TimingTiming can vary based on depth of business content

*Estimated fees: Updates consistent with project enhancementsConnected Thinking Top Projects You Can Combine With SWPLeadership interviewsEmployee researchRewards review/phased retirementRecruiting process redesignEmployer brandingCareer managementNOTE: Tools fees include annual data load, software licensing fee, security, hosting, maintenance and help desk supportMajor Updates

Types of Projects ($000s)Consulting FeesFee for Tools (if applicable)TotalWorkforce Scan$20-$35$20$40-$55External Labor Scan$40-$60$25$65-$85Workforce Projection Model$45-$75$50$95-$125Staffing Planning$25-$45$30$55-$75Total Typical Fees$120-$210$125$245-$335

*Market updatesTowers Perrin is focusing in SWP worldwide but fail to deliver in China and Asia markets due to inability of local consultants and lack of data. (This is true for all other major consulting firms as well)Mercer appears to be directly positioning itself to compete against TPs SWP offeringWorkforce Forecaster brand new Web-based tool for workforce planning that analyzes current workforce and prior trends and models future workforce; does not analyze external laborThese tools appear to be still fragmented internally; however, Mercer appears to be offering solutions, not just strategies for companies to followWyatt: Has workforce planning but no major move or updates for 2007; can be a strong competitor in the marketplaceCLC: Has workforce planning and metrics in its spin-off called Inform (used to be CLC metrics)WyattCLC/InformMercer

Case StudiesGuangzhou MTRHP (Asean)Pepsi-cola (China)EDS (China) a case of failure

*

Career Ladder / Job Family

*What is Career Management?Career MapCareer Ladder+Functional CompetenciesTalent ApplicationsRewards & Job EvaluationLearning and Development Performance ManagementCareer Pathing& PlanningRecruitment and SelectionThe career ladders describe the progression of organization-wide competencies-- Talent requirements and expectations at each level are clearly statedFunctional competencies clarify technical requirements and responsibilities unique to a functionThe organization-wide competencies define expectations that are common for all jobs across the company. Functional competencies define the unique set of competencies for employees in a specific function. The two sets of competencies are complimentary and are not intended to overlap.

*Career Ladder Framework Business Support ServicesProduction and OperationsIndividualContributorSales & AccountManagementSupervisory/ ManagementIndividual ContributorsManagersSupportLeadSeniorEntryIntermediateSenior ExpertExpertEntryAssociateSpecialistCareer

ProfessionalLeadAdvancedEntryIntermediateTeamLeaderExpertAssociateCareerManagerSenior ManagerEntryGroup ManagerManagerSupervisor ConsultingManagerSenior ManagerSample

*LearningApplyingApplying/GuidingGuidingGuiding/ShapingGuidingLearningApplyingIndividual Career LadderManagerial LadderM1M2M3M4P2P1P5P4P3P6Career management Becomes Transparent Competency Level Characteristics

Shaping Leading Through VisionGuiding Contributing Through OthersApplying Contributing IndependentlyLearning Helping and LearningSample

*Career Management - Managerial and Individual Contributor Career Paths...Both these career paths share some common characteristics:Positions in each career path are respectively equivalentIndividuals in each career path may require a combination of people and technical skills, but one area is emphasized more than the otherThe number of incumbents needed by the organization decreases at higher levels Generally, Managerial career paths include roles where individualsManage people (e.g., hiring, performance management, compensation, development)Implement processes to achieve strategic goals and objectivesMaintain responsibility for operational aspects of the organization (e.g., budgeting, planning, profitability, resource allocation)Emphasize the acquisition and development of management skills while maintaining a broad technical skill foundationIndividual Contributor paths include roles where individualsFocus on contributing to the organization primarily on an individual basis through the application of in-depth technical expertiseMay include some emphasis on providing informal guidance and performance feedback Allows for the majority of time to be spent on performing and providing advice on technical activities/issues

Role Competencies

*Competencies were developed on the basis of our values, and help us to live our values in our everyday work, describe how managers are expected to behave, support and guide managers in their leadership tasks, provide a yardstick to measure development and leadership performance.

*Competencies Competency are critical for:Aligning how employees deliver results with the organization strategy and valuesEstablishing common criteria for hiring, training, measuring and rewarding employeesCommunicating a consistent language about performanceEmphasizing how someone performs in addition to what they achieveIdentifying gaps between current capabilities and future requirementsFocusing training and development efforts on areas with greatest need and/or impactEncouraging development.

*Competencies 1. General/CoreCompetencies2. Functional/TechnicalCompetenciesExamples:LeadershipTeamworkCustomer OrientationExamples:Finance and accountingRisk managementAuditingLabor regulationsProblem SolvingOrganizational CompetenciesFunctional/Technical CompetenciesCritical to realizing organizational business goalsGenerally common across the organization and apply to all employeesOften reflect the organizations Core Values and tie to its cultureNecessary for success in a particular function, role, or jobNot applicable to all employees but specific to a particular domain (eg. sales, finance, HR,)Usually involve knowledge in a technical, professional or process area

*

Competencies

CompetencyLevel of ContributionILLUSTRATIVEGeneric Definitionbehavioral AnchorsExample of a scaled competency

Negotiation SkillsEffectively persuades customers and colleagues in order to reach mutually beneficial agreements and influence important outcomesFoundationalIntermediateAdvancedStrategicNegotiates simple, short-term offers and handles minor objections; seeks assistance with more difficult negotiationsArms self with information prior to negotiating with a customer; learns to ask the right questions to understand the other partys positionLearns to ask for a commitment and persists despite initial rejection Negotiates standard contracts with confidence; builds rapport and trust with the negotiating party, effectively predicts and responds to objections and knows when to ask for a commitmentCreates a common ground by recognizing areas of agreement and focusing on areas of disagreement in a negotiationCaptures the full value of an offer, accounting for all factors in a negotiation (e.g., brand, freight, consulting services) Negotiates complex contracts (multi-year, high dollar volume) maximizing the full value for all parts of the offering; optimizes long-term value by recognizing that negotiations are an on-going eventAdapts to different negotiation styles (cultural and behavioral) within an organization and resolves issues without negative impact on the relationshipKeeps all stakeholders informed and in alignment on difficult or complex negotiation terms Negotiates global or multi-regional arrangements; develops negotiation strategies based on an in-depth understanding of the dealUnderstands how to approach negotiations at different tiers in the value chainPositions self and company for the future; knows the key influencers in an organization and pre-sells an arrangement

*Competencies SupportProfessionalIndividual Contributor Roles

Management Roles

ManagementLinking competencies to career framework

* Competencies To be Effective, the Competency Model Needs to be Integrated into Broader HR and Talent Management Programs

Talent Management

The China Market Environment

*Employees will be a source of competitive advantage1980s2000s1990sWhat does the employee cost the organization?(Focus on reducing total labor costs)What is the employee worth to the organization?(Focus on maximizing human capital ROI)What is the organization worth to the employee?(Focus on engagement unleashing discretionary effort)Our Most ImportantInvestorsOur Greatest AssetOur Highest CostReal competitive advantage

*Younger Workers in China are looking for Career Opportunities Source: Towers Perrin 2007 Workforce Study China. * Insufficient base size to run driver analysis for age 55 or older group. Top drivers of attraction by age group*

Attraction DriversChina OverallAges 18 to 29Ages 30 to 44Ages 45 to 54Learning and development opportunities1128Career advancement opportunities2235Competitive base pay3412Competitive benefits43410Vacation/paid time off N5553Reputation of the organization as a good employer666Long-term incentives7107Innovative environment N8899Challenging work97Strong senior leadership1084Organizations mission and vision N9Competitive retirement benefits 101High level of autonomy6Reasonable workload N7

*The Talent War is on-goingNon-availability of Leadership in ChinaAmong all Asian countries, China has the highest shortage of local Leadership:Companies reporting suffering from shortage of local leadership:China - 50%Malaysia- 30%Australia- 23%Indonesia- 19%Singapore- 15%Philippines- 15%Thailand- 13%Taiwan- 12%Hong Kong- 10%Korea- 7% Sources: Talent surveys by Conference Board, Hewitt, Wyatt, Mercer during 2003 - 2006

*Shortages of Local Talents in China

Multiple studies during the last 5 years indicated:

Top Executives / General Management (50-60%)Functional / Department Heads (50%)Professionals (30-45%)

* This will continue..

*Turnover: a major concern & issue for all

Depending on industry and location:

Turnover for Senior Management and Functional/Technical Experts (20-35%)Professional (15-25%)Front-line workings (50-60%)Young Graduates, Management Trainees (40-60%)

*Evolution in Talent ManagementIn China Managing Talent is A Core Concept For HR:

Talent is being recognized as a key area of HR practiceChinese & Multinational companies have moderate confidence in the ability of their HR to manage talent and support line managers There is plenty of scope for HR to improve its own skills so as to further the talent management agenda

*A Snapshot Of The China Talent Management EnvironmentSignificant progress has been made in China in establishing talent management systemsStrong interest by senior leadersTalent management viewed to be an important issue in China HR is confident in approaches to and effectiveness of talent managementMajor gaps in talent managementRetentionLeadershipMobility

*In China - Senior Management consider Talent Management as Critical Importance of Managing Talent

Chart1

0.290.60.81

0.230.20.15

0.240.140.02

0.140.040.01

0.070.020

HK

Asia

China

Sheet1

A very critical issue (top of mind for senior management)A somewhat critical issueAn emerging issue, but not yet viewed as criticalA relatively unimportant issueNot a critical issue at all

HK29%23%24%14%7%

Asia60%20%14%4%2%

China81%15%2%1%0%

*Top challenges in talent management

CurrentFutureMainland ChinaForecasting talent needs, gaps & surplusesDeveloping existing talentAttracting the right leadership talentAttracting the key contributorRetaining the right key contributorRetaining the right key contributorAttracting the right leadership talentForecasting talent needs, gaps & surplusesEnsuring a diverse talent poolDeploying existing talent

Talent ManagementWhat is it?Why is important?Who/what is Talent?What to measure?How to assess?How to manage them?

*Talent Management: What is it?

*Moderate-complexity jobs32%High-complexity jobs48% Sales jobsup to 120%0%100%50%-1 S.D.+1 S.D.Represents top 16%Productivity value of one standard deviationSource: Journal of Applied Psychology, 75 (1990): 28-42The productivity differential between high and average performers can be significantSuperior performers in white-collar jobs deliver 32% to 48% more value-added discretionary performance than average performers

*Who is Talent different perspectivesEmployee Groups Considered Talent

Chart1

0.50.390.51

0.680.280.84

0.740.550.81

0.710.620.82

Asia

HK

China

Sheet1

Those with leadership potential at an entry level (e.g. graduates, management trainees)Key contributors/technical experts (those in positions critical to delivery of the business strategy)Those with leadership potential at mid-levelSenior leadership (top two or three layers of management)

Asia50%68%74%71%

HK39%28%55%62%

China51%84%81%82%

*What / Who is Talent?Employee Groups Considered Talent

Chart1

0.02

0.51

0.81

0.82

0.84

Sheet1

OtherThose with leadership potential at an entry level (e.g. graduates, management trainees)Those with leadership potential at mid-levelSenior leadership (top two or three layers of management)Key contributors/technical experts (those in positions critical to delivery of the business strategy)

2%51%81%82%84%

*Factors Used to Determine Inclusion in Talent PoolsImportance of FactorsMeasuring What?

Chart1

0.03

0.07

0.66

0.74

0.78

0.86

Sheet1

We don't have a formal definition of talent.OtherAlignment between personal and organization valuesPotentialBehaviors (competencies)Performance record

3%7%66%74%78%86%

Chart1

0.03

0.71

0.91

0.88

0.91

0.94

Sheet1

We don't have a formal definition of talent.OtherAlignment between personal and organization valuesPotentialBehaviors (competencies)Performance record

3%71%91%88%91%94%

*Criteria for Talent SelectionFactors Used to Determine Inclusion in Talent PoolsImportance of Factors

Chart1

00.030.03

0.880.780.91

0.890.860.88

0.870.720.91

0.890.750.94

Asia

HK

China

Sheet1

We don't have a formal definition of talent.Alignment between personal and organization valuesPotentialBehaviors (competencies)Performance record

Asia0%88%89%87%89%

HK3%78%86%72%75%

China3%91%88%91%94%

Chart1

0.030.010.03

0.60.50.66

0.690.580.74

0.750.640.78

0.810.690.86

Asia

HK

China

Sheet1

We don't have a formal definition of talent.Alignment between personal and organization valuesPotentialBehaviors (competencies)Performance record

Asia3%60%69%75%81%

HK1%50%58%64%69%

China3%66%74%78%86%

Leaders Impact on Organization Source: Ice-berg concept by Dr. David McClelland

* * * * IQ,EQ,AQ,LQ

by Dr. David McClelland

HR

*How to Assess Talents?

Chart1

0.27

0.5

0.55

0.6

0.69

0.7

0.7

0.71

0.72

Sheet1

OtherOnline assessmentPsychometric testingSelf-nomination using specified criteriaAssessment centreMulti-rater feedback (360 degree)Panel discussions (HR and managers)Managerial nomination using specified criteriaInterview

27%50%55%60%69%70%70%71%72%

Interviewing: are we trained? (BEI Targeted Selection)Do we have clear expectations including managerial, functional and technical competencies? Reference to the desired competencies, do we have the tools and methodologies to assess them? Are we trained on these? (Competency Models and 360 rating systems)Other additional information we need to know about the Talents? ( individual characteristics, traits, work energy, psychological capital i.e. IQ,EQ,AQ, LQ ;motives, personal values & life philosophies,

*Assessing Talents:Are we equipped ?

*Planned Talent Development PracticesHow to Manage Talents?

Chart1

0.20.20.61

00.40.6

000

0.060.420.52

0.20.50.3

0.20.60.2

0.210.460.32

0.210.290.5

0.2500.75

0.290.290.43

0.290.290.43

0.430.290.29

0.440.220.33

Yes, within the next 12-18 months

No

Not sure

Sheet1

OtherAction-based learningIn-house development programs (e.g. classroom-based)International assignmentsTemporary transfer (e.g. to partner organizations/clients)Rotational assignmentsOnline learningJob shadowingCoaching and mentoringRegular review of high-potential talentStretch assignmentsProjects (e.g. special assignment for a specified period of time which responds to a business or organization need, often in addition to the day job)External qualifications/ development programs (e.g. MBAs, leadership development courses)

Yes, within the next 12-18 months20%0%0%6%20%20%21%21%25%29%29%43%44%

No20%40%0%42%50%60%46%29%0%29%29%29%22%

Not sure61%60%0%52%30%20%32%50%75%43%43%29%33%

Best in Class Practices

*What are best in class companies doing?

Ensure senior leadership alignment, talent pipeline and communicationEnhance learning and career development frameworkImprove front-line manager effectivenessAlign total rewards strategyRefocus organization communicationsMore visible ownership of talent agendaClearer articulation of mission, vision and growth strategyMore rigorous succession planning process Earlier identification, deployment and management of high potentialsReview of core and functional competenciesExplore career ladders to clarify paths and calibrate rewardsRevisit learning/ development purpose, process and resourcesEnsure better goal-setting and informal recognition, and richer performance assessmentsEquip to engage in more productive career development discussionsFocus on Engaging team management better involvement, communication and collaborationOptimize investments against key attraction, retention and engagement driversAdopt segmented strategy to address key talent pools (e.g., technical, sales, future leaders)Emphasis on internalizing the brand/value proposition, focusing on customersMore compelling communication of vision and strategy

*Overview: Talent Management FrameworkBuild board/senior management engagement; communication planningDevelop toolsOne definition (e.g. high potential) or two (e.g. high potential and technical experts)Review stretch qualities vs competenciesDefine stretch and ambition factorsDefine expert criteria if requiredDevelop talent review processPrinciplesDetailed process stepsFit with business planning and performance management processesDefine scope/corporate interest groupAgree responsibilitiesReview talent requirementsCreate definition(s) of talent incorporating competencies Manager assessmentTalent review sessionReporting DatabaseBuild skillsBuild board and senior management capabilityTrain HR facilitatorsIllustrative Talent reviews & strategic staffing Performance management Development RewardsTalent survey ensuring alignment Critical:

Determine what and how to assess Talents Ability and Potentials

Steps for Successful Talent Management ImplementationA Business Case gaining line and senior management ownership Clarify Objective and Expected Results what and why Talent Management?Communicate throughout the organizationThe Talent/Succession Management Framework:Definition What is Talent? Who is Talent?Establishing the Criteria competencies, behaviors, abilities and potentialsEstablish standard review processes: Setting the criteria and Define methodologies for assessment / selection Finding gapsFinding out what Talent wants match and align with organization needsDevelopment structured programs and toolsBuild internal skills to Manage TalentsA holistic approach ensuring linkage to HR systems e.g. Career Ladder, Competencies , Training, Reward, Performance Management, etc.

*

Succession Management

A connection to Talent Management

*

Succession ManagementThe question is do you have the Back-ups or Bench for your critical rolesIn each of your critical roles, you should have at least 2 back-upsDo you know your People Risk? Succession Management is more than just putting names in boxes

*Succession ManagementWhy is it important?It ensures no management gaps for the organizationNo or less interruption to business operationsEmployees understand their career paths and developmentA positive Employer branding

*Succession Planning Sample

Critical RolesWithin 12 months13 to 24 months25 to 36 monthsMore than 3 yearsHR DirectorABCABDVP CommercialXYZVP Corporate & Legal AffairsDDCVP Finance DFGSales DirectorREG

People Risk Management*Sample

NamePositionTime in Position , Company Performance for last 2 yearsPotential for next level Career Aspiration / Development Plan DiscussionRisk LevelABCFin Mgr2/51,2Yes, 1Yes, 3 monthsH/MDEFF&B Mgr3/82,2Yes, 1Yes, 6 monthsM/LGHIHousekeeping MGr1/73,2NonoLMNOGR/PR Mgr 2/43,3TBONoM/LPQSHR Mgr1/52,3Yes,2Yes, 4 monthsMXYZSales Mgr1/21,1Yes, 1 to 2Yes, 2 monthsM/H

*ExerciseIndividually, take 5-10 minutes to think about your own Management Team:Part one:Do you have Back-ups for these critical roles?How Ready are your bench?

Part Two:What are the Risk Levels for these critical talents?What needed or can be done to accelerate them?

Leadership and Management DevelopmentFocus on the Intrinsic i.e. the DriversPrimary Skill - CoachingComplement with Function / Technical SkillsPrepare ahead of timeUphold accountabilityTie to Performance and Reward

*

What do you see?*

Leaders Impact on Organization Source: Ice-berg concept by Dr. David McClelland

HR

Self Awareness The Wisdom of Leaders

Understanding Others The Route to SuccessSuccessful Management

Successful Management Self Awareness & Understand OthersSelfAwareness SelfManagementSocialAwareness SocialSkillsPositive Impact on People

Infosys 24 172 --- www.fortunechina.com 20100204

70%6:77% 71% 53%48% 48%

*1*2 63% 37%

*2*3*120, 2002*2 2.19, 2001, 1434*3 www.manchesterus.com

: +35% : +6%: +13%: +13%+13%: +9%: +9%: +9%: +5%-- : +16% : +10% : +6%

0.880.670.490.670.430.37

0.360.24-0.180.190.28-0.27:

---+-

-6.

Summary and ConclusionA few questions:

Who is the owner?Do you have Senior Management buy-in, involvement, support , etc.Are you equipped? What can and should you do in China? IS Talent Management enough?

*

CONTACT USAddressRoom408-1,Jin Feng He Building, 8Xin Jie Kou WaiStress,Beijing,100088,ChinaTel010-62020069Fax010-62020058

Beijing: 15012508919 Michael ChanShenzhen: 13602559869(Amy guoZhuhai: 13570609708 (Sabrina Hu)

Michael Chan Towers PerrinWilliam MercerHAY group25

Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation TitlePresentation TitlePresentation TitlePresentation Title**The values are familiar from the corporate mission statement, and were already discussed at length when supervisors personally distributed the mission statement to their direct reports.

The values form the link to the Leadership Principles. Hence the title of the new leadership guidelines:Values and Leadership PrinciplesPresentation TitlePresentation TitlePresentation TitlePresentation TitlePresentation TitlePresentation TitlePresentation TitlePresentation TitlePresentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**The Leadership Principles

were developed by an international team including representatives of all the subgroupswere discussed at length with the Group Management Board and the chairmen of the subgroups management boardsreceived the final approval of the Group Management BoardPresentation TitlePresentation Title**In every job, some people perform more effectively than others.Superior performers do their jobs differently and possess different characteristics, or competencies, than average performers do.These differences are valuable: extra economic value may be half of salary cost.The best way to identify the characteristics that predict superior performance is to study your top performers.

Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**CHARLIEPresentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Talent management is a concept that draws together many diverse HR activities. There is much temptation for HR to carry out a range of activities without seeing how they interconnect. Hence it becomes a series of administrative functions rather than having a common strategic impact.Companies have moderate confidence in the ability of their HR personnel to manage talent in their organization and support line managers in managing the talent in their teams. This situation suggests that there is plenty of scope for HR to improve its own skills so as to further the talent management agenda. Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**When we further look at those respondents that have stated a 50% or greater likelihood to visit destinations in the future, Orlando has a wide variety of competitors. Orlando must be creative in your marketing an communications to those considering competitive destinations; and utilize some of the motivating factors weve uncovered in our primary research.Presentation TitlePresentation Title**When we further look at those respondents that have stated a 50% or greater likelihood to visit destinations in the future, Orlando has a wide variety of competitors. Orlando must be creative in your marketing an communications to those considering competitive destinations; and utilize some of the motivating factors weve uncovered in our primary research.Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation Title():

*Presentation TitlePresentation Title**When we further look at those respondents that have stated a 50% or greater likelihood to visit destinations in the future, Orlando has a wide variety of competitors. Orlando must be creative in your marketing an communications to those considering competitive destinations; and utilize some of the motivating factors weve uncovered in our primary research.Presentation TitlePresentation Title**When we further look at those respondents that have stated a 50% or greater likelihood to visit destinations in the future, Orlando has a wide variety of competitors. Orlando must be creative in your marketing an communications to those considering competitive destinations; and utilize some of the motivating factors weve uncovered in our primary research.Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation TitlePresentation Title**Presentation Title