Talent succession
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Transcript of Talent succession
Introduction
“Over their entire tenures, CEOs appointed from the inside tend to outperform outsiders“
(Booz Allen Hamilton Consulting)
“ Every company has a succession planning document. The question you have to ask is
Will it be operational?“
(Prof. David Larcker, Stanford University)
5
Why people risk is important?
6
Human capital risk is seen to be one of the most significant threat to global business operations1.
“The ability to understand risk is one of the fundamental drivers behind our global economy. Without it, we can’t make the investments, and we can’t take the initiatives required to succeed.”
Greg Case President & CEO, Aon Corporation
1 Best Practices in Risk Management: A Function Comes of Age: A report from the Economist Unit Sponsored by ACE, IBM and KPMG,
The Economist Intelligence Unit, 2007, 21 pages
As companies become more global, there is an increasing need for understanding risk profiles for talent.
Talent pools vary across locations and companies have to adjust their talent strategies to address the risks associated with talent in those locations.
People Risks in APAC
7
2009 2011 2013
1 Economic slowdown Economic slowdown Economic slowdown / slow recovery
2 Regulatory / legislative changes Regulatory / legislative changes Regulatory / legislative changes
3 Business interruption Increasing competition Increasing competition
4 Increasing competition Damage to reputation / brand Damage to reputation / brand
5 Commodity price risk Business interruption Failure to attract or retain top talent
6 Damage to reputation Failure to innovate / meet customer needs
Failure to innovate / meet customer needs
7 Cash flow / liquidity risk Failure to attract or retain top talent
Business interruption
8 Distribution or supply chain failure
Commodity price risk Commodity price risk
9 Third-party liability Technology failure / system failure
Cash flow / liquidity risk
10 Failure to attract or retain top talent
Cash flow / liquidity risk Political risk / uncertainties 10
5
7
Source: Aon Hewitt 2014
Top 5 People Risk Issues in APAC
8
Talent Retention 1
Talent Development 2
Leadership Skill & Management Capability 3
Leadership Shortage : Succession Plan 4
Ability to Attract Talent / Poor Talent Selection 5
Source: Aon Hewitt 2014
People Risk in Thailand
9
Participant Average Source: Aon Hewitt Best Employers – Thailand 2015 (CEO Questionnaire)
54%
42% 37%
25%
4%
25%
35%
46% 48%
0%
20%
40%
60%
80%
100%
Criticalskills
shortage
Inabilityto attract
talent
Poor availabilityand selection oftalent in external
labor market
Inabilityto
retainemployees
Poor laborrelations
Lowemployee
productivity
Inadequatecapabilityof currentleaders
Inadequateleadership
pipeline
Risingsalaries
Percentage of organizations
The people risks, as identified by CEOs in Thailand, are shown as follow:
What are the Risks related to People?
10
1. Workforce Planning
2. Talent Acquisition
3. Employment Practices
4. Talent Management
5. Leadership
6. Exiting
• Talent shortages • Skills shortages
• Ability to attract talent • Poor talent selection
• Compliance • Labor relations • Rewards • Safety, health & absence
• Talent development • Productivity • Talent retention
• Leadership shortage • Leadership skill & Management
capacity
• Aging workforce • Compliance • Attrition
Impact on: • Revenue • Expenses • Execution of
strategy
Top People Challenges in Thailand for the next three years
Source: Aon Hewitt 2014
Key Challenges in Today’s Market
Talent challenges Business challenges
Insufficient numbers of ready-now leaders
Change in demand for talent and skills required for success
Pace of talent development does not match with speed of growth initiatives
Business growth
Cost pressures
Product/Service innovation
Source: Aon Hewitt Top Companies For Leaders 2014
Laying the Foundation for Success: What Companies Must Get Right
12
Seamless Execution
Leadership Strategy &
Accountability
Attracting Leaders
Leadership Assessment
Leadership Development
High Potentials
Succession Management
Metrics
Programs are strategically tied to the goals, values and culture of the organization. Leaders demonstrate and are held accountable for strategically-driven behaviors in the right way.
Leaders are engaged and values-driven. Companies utilize a consistent and rigorous approach to selection and onboarding
Valid and objective feedback assessments to understand capabilities, guide development, inform succession plans
Provide accelerated development through meaningful, experiential, relational, and traditional processes
Conduct robust talent reviews to consistently define, identify, calibrate and develop
high-potential and critical talent
Maintain a deep and robust talent pipeline via
succession management
Utilize metrics to track progress, evaluate effectiveness and
drive desired results
Source: Aon Hewitt Top Companies For Leaders 2014
What is the DNA of top companies?
1. When it comes to building leaders, top companies strongly endorse a full spectrum approach to assessing the whole leader (experiences, competencies, values, organization fit) early in their career to understand the unique needs of their talent pipeline that fuels the right development solutions to move people forward faster.
2. Top companies have self-aware leaders who exhibit tremendous understanding of their personal strengths as well as blind spot and use this information to become more effective leaders of others.
3. Top companies build resilience in their leaders through inclusive cultures where multiple perspective and ideas are expected to help the organization meet fast changing business challenges.
4. Top companies are intentional about identifying and building engaging leaders who are stabilizers, ambidextrous, and connected to people and events inside/outside their organization.
5. Top companies are focused on the building sustainable programs and practices that strategically drive business outcomes.
In the face of today’s volatile, uncertain, complex and ambiguous (VUCA) business environment, top companies have the edge to successfully support leadership and talent growth that result in stronger organizational performance—via their fundamental cadence:
Source: Aon Hewitt Top Companies For Leaders 2014 13
Assessment
14
Cu
sto
miz
ed
Stra
tegi
c
Assessment
Source: Aon Hewitt Top Companies For Leaders 2014
Self-Awareness
15
Self awareness
as integral
building
an
block
leadership
of
Source: Aon Hewitt Top Companies For Leaders 2014
Self-awareness is knowledge
16
Knowing Self
Knowing How To
others
(means)
…
Lead
Influence
Motivate
Inspire
Impact
Strengths
Blind spots
Source: Aon Hewitt Top Companies For Leaders 2014
Resilience: Getting Comfortable with the Uncomfortable
Stretch people
outside of their
comfort zones…
…but be there
to catch them,
coach them,
watch them grow
17 Source: Aon Hewitt Top Companies For Leaders 2014
Engaging Leadership
18
Purpose
Commitment
Authenticity
DNA DNA
The storytellers and stewards of the
company vision, mission, values, and culture
Understand that engaging others is core
to their role in the organization
Stabilizers, ambidextrous, humble, and connected to the people and events that surrounding their organization
DNA of Engaging Leader
Source: Aon Hewitt Top Companies For Leaders 2014
Sustainability
19
Personal & Organizational Growth
Alignment
Future-orientation
Accountability
Integration
Culture, Vision, Mission, Values
Source: Aon Hewitt Top Companies For Leaders 2014
Great Organizational Performance
20
Getting ahead of the pack
Challenge
Create
Build
Core practices and assumptions to respond to rapidly changing market conditions Accountability to
generate sustained change
A distinctive culture through leaders at every level
Source: Aon Hewitt Top Companies For Leaders 2014