CANTO HR conference 2008 – Strategic Management Development KPMG Advisory B.V. Strategic Management Development Jan Willem de Serière July 17 th, 2008.

CANTO HR conference 2008 – Strategic Management Development

KPMG Advisory B.V.

Strategic Management Development

Jan Willem de SerièreJuly 17th, 2008

2 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Content

Dreams of a CEO

What is strategic Management Development?MD profiles

MD cycle

MD assessment

How to facilitate the dreams of the CEO

Waking up: The Pragmatic approach: Competencies and Performance

Competencies

Competence management

Change Management

Project approach

Discussion

3 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Dreams of a CEO

What if ?The most

talented people are working in

the right position

I am able to retain my best

resources

The best performing people want to work in my

companyMy organization is

capable to adapt fast and continuously to

the changing environment

I can use the best resources as a role

model

4 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Dreams of a CEO

Then…I have a serious

competitive advantage

The core business can rely on a sustainable workforceMy whole

organization can adapt faster to

changes

The company is nurturing talent

It will creates a challenging

environment to work in

5 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

How can these dreams become real?

Strategic Management Development

Competence & Performance Management

6 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

What is strategic Management Development?

Definition

‘Management Development (MD) is the whole spectrum of specific Human Resource activities

to guarantee that the rightly qualified and motivated persons are ready on time to fill in the

key positions in the organization.’

7 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

What kind of MD profiles are there?

MD Web: an example

Organizational Development

Personal Development

ControlInitiating

8 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

What kind of MD profiles are there?

MD Web: 8 different profiles

Top down

Wild garden

OD

PD

CI

® MD-web kpmg 1997

OD

PD

CI

® MD-web kpmg 1997

Patriarchal

Bottom up

OD

PD

CI

® MD-web kpmg 1997

OD

PD

CI

® MD-web kpmg 1997

Military

Passive

OD

PD

CI

® MD-web kpmg 1997

OD

PD

CI

® MD-web kpmg 1997

Conceptual

Active

OD

PD

CI

® MD-web kpmg 1997

OD

PD

CI

® MD-web kpmg 1997

10 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Assessment of the current situation

The first step in improving your MD organization….

OD

PD

CI

…. Is knowing which direction you want to go!

11 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

MD cycle

Benchmarking

MD-policyMD-policy

MD-actionsMD-actions

MD-visionMD-vision

ManagementIssues

ManagementIssues

Organizational strategy

12 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Alignment with organizational strategy

Coordination

MD-toolsCurrent formation

Strategy

To be formation

13 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Where are you now?

Admini-strative

Deductive

PartnerLeading

Focus on Personal Development

High

Low

Focus on Organizational Development

Low High

14 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Where are you now?

Leading• Unique knowledge and skills of

employees are used as input for the organizational strategy

Partner• MD en top management are partners

in formulating the overall strategy

Deductive• MD tools deducted from organizational

strategy

Administrative• No external driven goals • Internal focus and administrative process

15 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

How to facilitate the dream of the CEO:Linking MD wit HR tools

• (campus) Recruitment• Succession planning• Management Audit

CompetenceManagement

Employment

Evaluation

Reward

HRM-cycle

Development• Training• Career paths• Coaching

• Assessment center• Potential• Bottom up evaluation

• Mobility• Exit policy• Communication• Selection

• Team bonus• Individual benefits• Job evaluation

• Business schools• Traineeships• Career coaching

• Development Centers• Balanced Individual Scorecard• 360° Feedback

• MD Bonus

16 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

How to avoid a nightmare: 9 principles

Link MD with the organizational strategy

Align top management with MD

Focus: make a choice of MD profile (PD or OD)

Define the MD target group

Link MD with the current HR tools

Align MD tools with practical situations

Transparent MD process

Make the MD program a challenge for the participants

Benefit for organization and individual

17 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Waking up: getting in to reality

Competence Management linked with Performance Management…

…the foundation for getting results!

Competence 1 2 3 4 5

client orientedness

market orientedness

business orientedness

innovation

people-orientedness

professionalism

.................

................ .

.................

Recruitment & Selection

Retention

Employee planning

Management Development

Career management

Performance evaluation

Training &Development

Reward

18 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

What are Competencies?

People Competences (Boyatzis)

‘A competency is defined as an underlying characteristic of an individual which is causally related to effective or superior performance in a job.’

Core Competences (Prahalad)

‘Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies.’

19 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

What are Competencies according to KPMG?

Competencies are the unique combination of knowledge, skills and personal attitude of an excellent performer

Organizational goals

Knowledge

Skills

Attitude

20 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Slight problem: Competencies are not always visible!

Knowledge and Skills

Attitude Beliefs Norm setting

Motives Preferences

Self reflection

21 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Why the effort to identify the right competences?

What performance needs to be delivered?

What competencies leads to the perfect

performance?

Organizational levelOrganizational level

Team levelTeam level

Individual levelIndividual level

Managing organizational goals Managing competences

22 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Competence Management: How to go about?

1. Description of the unique competence set

2. Change management approach

3. Phase wise project management

23 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

1. Competence profiles: the foundation

1. Set goals and agree upon the scope

2. Identify results

3. Identify excellent performers

4. Competence interview forms

5. Interview these performers

6. Database research

7. Concept profiles

8. Panel discussions

9. finalize competence profile

24 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

1. Measurement of Competencies

1. Development Centers

2. 360 degree feedback

3. Individual or team assessments

4. Individual or/and group assignments

5. Exams

25 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

1. Talent evaluation model

1-2 job levels higher

probably 1 level higher

or job rotation

current job (level)

po

ten

tia

l

needs improvement strong excellent

performance

feed back

feed back

move out

potential concern

diamant in the rough

learning a role

developing at level

developing at level

promotable

promotable

essential contributor

growing & stretching

sharing knowledge

& experience

sharing knowledge

& experience

high potential

promotable

high professional

concern

MD status

Focus on development through/by

26 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

2. Change management

1. Create a sense of urgency

2. Form a leading coalition

3. Create a shared vision

4. Communicate change vision

5. Generate short term successes

6. Consolidate improvements

7. consolidate new approach in the culture

John Kotter, Leading Change

27 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

2. Change management

The Change Management challenge: reducing individual resistance, building individual commitment, whilst leading the organization from its current to future state to realize

planned business benefits

Reduce Resistance

Build Commitment

28 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

2. Change management

Business Performance

MINIMIZE

MAXIMIZE

TIME

Stabilize & SupportStabilize & Support Benefit RealizationBenefit RealizationImplementationImplementation

29 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Result

Validated, recognizable and SMART competence profiles for key functions.

Coherent competence matrix with transparently linked with the HR tools.

Result

Pilot project.Personal development sessions.Personal development plans.Review meeting.Evaluation of the effects.

Result

Implemented competence matrix in all organizational departments.Evaluation of the effectsContinuously monitoring and adaptation of the competence matrixAgreed process document

Result

Detailed work plan and approach how to organize the competence process

Issues of consideration Mission, Vision and

organizational goals are the starting point of the process

Clear set goals what the organization want to obtain with competence management

Change Management approach is included

Plateau planning discussion Strategic coalition and

sponsors are in place

Issues of consideration

10 steps how to acquire Competence profiles

Alignment with all participants in the process

Transparent communication

Issues of consideration

Train the (middle) managers in the competence process

Involve all functional layers of the organization

Design the Roll Out process

Activities

Document studies Interviews with key-

players Interactive workshops

key with players Brainstorm sessions

Activities

Focus groups Behavioral Event Interviews Workshops Competence

management Design HR tools

Activities

Development Centers Coaching & Counseling Intervision sessions Effect evaluation

2‘Design the Competence matrix’1 3 4‘Focus’ ‘Testing and Evaluation’ ‘Roll Out’

Issues of consideration

See phase 1, 2 and 3

Activities

See phase 1, 2 and 3

30 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Stop dreaming… be prepared

Investment in Management Development is the competitive

advantage!

LAND

LABOR VALUE andLEADERSHIP

CAPITAL

INDUSTRIALINDUSTRIALECONOMYECONOMY

AGRICULTURALAGRICULTURALECONOMYECONOMY

KNOWLEDGEKNOWLEDGEECONOMYECONOMY

31 © 2008 KPMG Advisory Services B.V. and KPMG Advisory Services N.V., Netherlands Antilles and Aruba limited liability companies and member firms of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Presenter’s contact details

Jan Willem de Serière

KPMG Advisory

+599 9 732-5100

[email protected]

www.kpmg.com