Diaz Del Oro & Hires - Royal Caribbean Building on Talent

Building on Talent

Sonia Diaz Del OroDirector, Global Learning & Organizational Development

Royal Caribbean Cruises, Ltd.

Teri Hires, Ph.D. Regional Vice President,

PDI Ninth House

Royal Caribbean’s Itinerary for Getting the Right Leaders Ready

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Agenda

� Introductions� Overview of Royal Caribbean Business� Business Case and Challenges� Building on Talent

� Framework

� Process� Results

� Evolution of Talent Management� Questions and Comments

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Questions

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About Royal Caribbean Cruises Ltd.

� Second largest cruise company in the world� 40 Ships – 3 expansion projects� $6.7 billion company� 64K+ employees worldwide� Strong brands� Royal Caribbean International, Celebrity Cruises,

Pullmantur, Azamara Club Cruises, CDR Croisieres de France, and Tui

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Competitive Strengths

� Innovative new ships –aggressive growth plans

� International presence� Strong relationships with

travel agents� Multi-branded strategy� Best people� Strong ethics and values

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Challenges We Face At RCL

Business� External business

conditions� Geopolitical environment� Regulatory environment� Complexity of our business� Competitive landscape� Guest expectations

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People� Shipboard/Shoreside� Diversity� Recruitment & retention� Engagement� Movement & scheduling� Training� Leadership Development &

Succession Management

Why must leadership development and succession management be a strategic business focus for the future of RCL?

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Business Case

How We Define Building On Talent

� Major commitment towards identifying and developing leaders for tomorrow

� Develops leaders to assume multiple roles organization-wide

� High potentials selected based on:� Current performance � Advancement potential

� Key RCL attributes (Business, Personal, Interpersonal and Leadership Effectiveness)

� Launched to senior leaders, cascaded to manager level� Drives business results

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Building On Talent Facts

� 28% of director and above population are in the program� Average 11 years tenure� Retention of 85% of our high potential population since

program inception versus 78% of all employees� 15% of participants no longer with RCL mainly due to:

� Reduction in force/position elimination� Performance

� Personal reasons

� Internally filled Director and Above positions – 87% were BOT participants

Building on Talent Framework

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Identify and Review Talent

Assess Talent Develop Talent Succession Planning

Building on Talent Framework

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� Leaders consider performance and potential of their direct reports

� Uniform tools, guides and worksheets ensure consistency

� Talent review meetings facilitated with leadership teams

� Talent discussed and debated during talent review meetings

� Formalized communication and program launch with selected high potentials

� Process occurs annually

Identify and Review Talent

Assess Talent Develop Talent Succession Planning

Talent Portfolio

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Per

form

ance

Potential

**All eligible directors & above were placed in one of these categories when evaluated for performance/potential

VP (two cases SVP) AVPDirector

C3

A

2 1

BSOLID

PERFORMER

High Achieving High Capacity

At Risk Under Achieving

NR

Building on Talent Framework

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� 360 Degree Feedback � Psychometric evaluations – cognitive, work

style, personality� “Year in the life” business simulations

� Personalized feedback reports generated

� Debriefs of feedback with boss and development planning action plans created

� Stack ranking reports generated for executive leadership use and for “birds-eye” view to determine development themes

Identify and Review Talent

Assess Talent Develop Talent Succession Planning

Executive Development Center

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Orientation

3 Business Simulations (to reflect a ‘year in the life’

of an Executive)

Development Planning Meeting

Integration Developmental Feedback

Structured Interview

Written Report

Cognitive Ability Tests, 360 & Personality

Inventories

Prework

Using Data for Decisions

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Using Data for Decisions By Competency

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Building on Talent Framework

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� Tied to business results and core competencies

� Customized to the individual

� Executive coaching engagements

� On-site leadership workshops delivered � Wharton, Harvard, UM and other

external executive development programs

� Special projects� Job rotations, new assignments

� Mentoring (current and past participants)

Identify and Review Talent

Assess Talent Develop Talent Succession Planning

Building on Talent Activities and Results

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Building on Talent Activities and Results

**5 out of 6 top jobs have been promoted from withi n

Building on Talent Framework

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Develop TalentIdentify and

Review TalentAssess Talent Succession

Planning

� Completion of succession charts

� Short term emergencies and medium/long term succession considered

� Succession charts reviewed and updated on regular basis

� Job rotations and assignments as needed

Outcomes

� 35% of current Officers in different functional role today than originally hired

� 52% of current Officers were promoted from within � Groomed and promoted from within:

� 4 of 5 Named Executive Officers (NEOs)

� 5 of 7 direct reports to Chairman & CEO

� 23 out of 50 leaders from top 3 layers of organization

� Evolving our succession practices from effective to world-class with the adoption of a more formalized approach –Building On Talent

Recognition and Reward

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RCL Succession Planning Evolution

Male

Female

World-Class Talent Management

Integrated Building on Talent

Traditional Succession Planning

Emergency Planning

No Formal Succession Process

Dynamic and Transparent Process, Ready-now Talent Pools, Global Job Rotations, Succession Cascades to Professional and Management Roles

Ad-hoc Identification of Successors for Executive Positions

Primarily External Replacements, Little Formal Development Internally

Broad Business Focus, Talent Reviews, Assessment Centers, Executive Development, Enterprise Perspective, More Internal Promotions

Key Positions Targeted, Specific Job Rotations, Some Internal Promotions, Business Unit Focus

Prior to 2003

2004 & Beyond

Key Considerations

� Understand where your business is headed – paint a picture of the future

� Find early “adopters”� Involve leadership – make it their own� Partner with HR� Know when to get help – external point of view � Create linkages – tie into other talent management

processes� Avoid “big bang” approach – evolve appropriately� Be relentless about process – but don’t forget the people

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Questions and Comments

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Contact

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Sonia Diaz Del OroDirector, Global Learning and Organizational DevelopmentRoyal Caribbean Cruises, Ltd.(305) [email protected]

Teri Hires, Ph.D.Regional Vice PresidentPDI Ninth House(972) 256-6504 [email protected]

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