IPMA CIMA Key Note Presentation on "Winning the War for Talent" 8 January 2013

© 2013 IPMA Asia Pacific www.ipma.com.sg

INTELLECTUAL CAPITAL: STRATEGIC DIFFERENCEWinning the War for TalentProf Sattar BawanyStrategic Advisor, IPMA Asia PacificManaging Director, EDA Asia Pacific

Tuesday, 8 January 2013 Cinnamon Grand, Colombo, Sri Lanka

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Every morning in Asia, a tiger wakes up. It knows it must outrun the slowest deer or it will starve to death.

Every morning in Asia, a deer wakes up. It knows it must run faster than the fastest tiger or it will be killed.

It doesn’t matter whether you are a tiger or a deer: when the sun comes up, you’d better be running…..

Are You A Tiger Or Deer?

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The S.C.O.P.E. Approach

S

C

O

P

E

HARE

HALLENGE

PEN MINDED

LAN TO IMPLEMENT

NJOY OURSELVES

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Strategic Advisor, IPMA Asia Pacific Managing Director & C-Suite Coach with EDA Asia Pacific Co-Chair of the Human Capital Committee of the American

Chamber of Commerce in Singapore (AmCham Singapore). Member of Frontier Strategy Group’s Expert Advisory Network

(EAN) for Talent Management issues in Asia Pacific advising CEOs and CHROs of global and regional organisations.

Over 25 years’ international business management in executive coaching, facilitation, leadership development and training

Adjunct Professor of Strategy at Paris Graduate School of Management teaching international business strategies, leadership development and human resource courses

Previously assumed senior leadership roles with global management & HR consulting firms: DBM Asia Pacific, Mercer Human Resource Consulting, The Hay Group and Forum Corp

About Your Facilitator

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The International Professional Managers Association (IPMA) is a global ‘not-for-profit’ (NPO) members organisation headquartered in Kent, UK with Regional Offices in Europe, Africa and Asia Pacific

IPMA mission as an International Examining, Licensing and Regulatory Membership Qualifying Professional Body to improve managerial performance at all levels

IPMA is the Strategic Partner of Executive Development Associates Inc. (EDA) for executive coaching and custom-designed leadership development solutions to accelerate individual performance

EDA established in 1982 is a pioneer and leader in creating custom-designed learning and executive/leadership development strategies, programs and processes to help clients (many Fortune 500 companies) achieve their strategic objectives and win in the marketplace.

Who We Are

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Workshop ObjectivesThis workshop will provide you with a foundation of knowledge that will enable you to: Gain an Understanding about the Context for Talent

Management in today’s Global Economy Develop the Business Case for Talent Management Understand the Strategic Importance of Succession

Planning for the Organisational’s Future Success Leverage on a Proven Framework for Developing Future

Leaders (including High Potentials) Learn the Lessons from Leading Global Organisations in

Talent Management & Succession Planning


TALENT MANAGEMENT

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What is Talent Management (TM)?The purpose of TM is to ensure that the right supply of

talented workforce is ready to realize the strategic goalsof the organization both today and in the future

Organization’s efforts to attract, select, develop, and retainkey talented employees in key strategic positions.

Talent management includes a series of integratedsystems of

recruiting, performance management, maximizing employee potential, managing their

strengths and developing retaining people with desired skills and aptitude

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Talent Management

TM introduced by Mc Kinsey consultants, late 1990’s TM is identified as the critical success factor in corporate

world TM focuses on

differentiated performance: A, B, C players influencing company performance and success

identifying key positions in the organization

Research has consistently show that firms recognize the importance of talent management but they lack the competence required to manage it effectively

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What is Talent?

According to McKinsey; talent is the sum of a person’s abilities, his or her intrinsic gifts, skills, knowledge, experience , intelligence, judgment, attitude, character, drive, his or her ability to learn and grow.

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Who are Talented People?

They regularly demonstrate exceptional ability and achievement over a range of activities

They have transferable high competence They are high impact people who can deal

with complexity (Robertson, Abbey 2003)

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The Business Case for Talent Management To compete effectively in a complex and

dynamic global environment to achievesustainable growth

To develop leaders for tomorrow from within anorganization

To maximize employee performance as aunique source of sustainable competitiveadvantage

To empower employees: Cut down on high turnover rates Reduce the cost of constantly hiring new people to

train

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Talent Management: Value Proposition Talent Management strategies help ensure the

quality, depth and diversity of a company’sleadership and talent bench.

Effective Talent Management acceleratesbusinesses’ ability to exceed performanceexpectations and drive future growth by:

Developing talent with the values, skills and experiences neededto be successful today and in the future

Aligning and integrating core HR processes with businessprocesses to increase individual, team and organizationalperformance

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Talent Management ModelVision, Mission, Strategy and Values

Talent Management Strategy

Talent AcquisitionSourcing, Selection and Onboarding

Talent ManagementWorkforce Planning; Talent Planning,

Leadership Pipeline and Succession Planning

Talent DevelopmentPerformance Management; Leadership Development;

Accelerating High Potential; Executive Coaching

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Talent Management fit within HR? Vision - Partner with the business to create organizational excellence through leadership and talent

acquisition, management, development & engagement Goal – Align & integrate core HR processes with business processes

TALENT ACQUISITIONProactively recruiting world-class,

diverse leadership talent

TALENT MANAGEMENTEnsuring a strong leadership pipeline

to drive growth for today and tomorrow.

TALENT DEVELOPMENTDeveloping and executing

programs, processes & tools to grow our current and future leaders

TALENT ENGAGEMENTIdentifying the level of engagement of employees to optimize contribution and reduce enhance retention

Employee Satisfaction and Engagement

Leadership Programs for High Potentials Executive Coaching

Performance Management and 360

FeedbackDevelopment

Planning

Talent Planning

Candidate Slating

Global Talent Development

Executive Recruiting

New Leader On-Boarding

Assessment

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• Profitability/ROI• Cost Optimisation• Employee Turnover /

Retention

• Employee Satisfaction• Employee Loyalty

• Policy on CSR, Sabbatical• Rewards and Flexibility• Culture, Espirit De Corps

• EQ Level & EI Competencies• Servant Leadership/Level 5• Leadership Styles

Organisational Results

Talent Engagement

Organisational Climate

Leadership Effectiveness

Customer Loyalty• Customer Satisfaction• Service Value/

Relationship

Bawany, S. (2011) “Ways to achieve Organisational Success: Role of Leaders in Engaging the Multi-Generational Workforce” published by Singapore Business Review, 1st November 2011. http://sbr.com.sg/hreducation/commentary/ways-achieve-incredible-organizational-success-0

ROI on Engaging Your Talent

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Group Discussion One of the biggest challenges in Talent

Management from an HR perspective is to obtain commitment from line management.

What is your experience on the above and also identify other potential obstacles or barriers to successful implementation of Talent Management?

Prepare your Group Response on Flipcharts and appoint a Spokesperson to Present to the larger Group

Duration: 15 mins (Discussion) 5 mins (Presentation)

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How great leaders inspire action - Simon Sinek has a simple but powerful model for inspirational leadership all starting with a golden circle and the question "Why?”.

Why should your Talent remain with your Organisation and as your Follower?

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“If you hire people just because they can do a job, they’ll work for your money. But if you hire people who believe what you believe, they’ll work for you with blood and sweat and tears.” - Simon Sinek

References: http://www.startwithwhy.com/http://www.youtube.com/watch?v=qp0HIF3SfI4http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

Video on Your Role as Chief Talent Officer (CTO)

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Discussion of the role of Talent to GE's success including HR's role in working with the CEO's. http://www.youtube.com/watch?v=CCVy7OxThGo

Video on Talent Managment@GE


SUCCESSION PLANNING

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“Crisis may be an overused word, but it’s a fair description of the state of leadership in today’s corporations. CEOs are failing sooner and falling harder, leaving their companies in turmoil. At all levels, companies are short on the quantity and quality of leaders they need.”

Reference: Ram Charan, “Leaders at All Levels”, Jossey-Bass, Wiley, San Francisco, California, 2008

Business Case for Succession Planning

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Get right leaders in right

roles

Grow / Develop Talent

ContinuouslyDevelop and

Upgrade

ManagePerformance

• Assessment & Selection

• Leadership Expectations & Values

• Recruiting & Sourcing

• On-boarding• New Leader-Team

Assimilation • Talent Management /

Succession Planning

• Assignment Management

• HiPo Assessment & Executive Coaching

• Executive Education Programs

• Workplace Action-based Learning

• Pay & Rewards• Performance

Management• 360 feedback• Employee Satisfaction• Quarterly Business

Reviews• Management Routines

Building a Strong Leadership Bench…all delivered through a series of integrated programs & processes…

• Business demands/strategy

• Ongoing planning • Business Performance

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What is Succession Planning? Succession planning is the process of identifying high-

potential employees, evaluating and honing their skills and abilities, and preparing them for advancement into positions which are key to the success of business operations and objectives.

Succession planning involves: Understanding the organization's long-term goals and objectives. Identifying the high-potential candidates and their respective

developmental needs. Determining workforce trends and predictions.

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Steps Involved in Succession Planning

1. Identifying legal and diversity issues to consider.2. Establishing present and future leadership roles and

objectives.3. Selecting key employees .4. Evaluating the strengths, weaknesses and readiness for

succession in key employees.5. Planning for the individual development of and ways to

retain key employees.6. Identifying “emergency” positions without successors.7. Planning for positions that cannot be filled internally.

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The Talent Strategy

Describes what type of people the organization will invest in and how it will be done

Besides the specific elements of their creed, the talent strategy of all high performing organizations should have these directives:

1) Identify key positions in the organization (not more than 20-30 %)

2) Assess your employees and identify the high performers (classify according to their current and future potential)

3) Retain key position backups4) Make appropriate investments (select, train, develop,

reward)

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Assessing the Employees

Superkeepers- greatly exceed expectations (3-5%)

Keepers – exceed expectations (20 %) Solid citizens- meet expectations (75 %) Misfits- below expectations (2-3 %)

L. A. Berger, D. R. Berger. Talent Management Handbook: The Talent Management Handbook: Creating a Sustainable Competitive Advantage by Selecting, Developing, and Promoting the Best People, 2nd Edition McGraw-Hill, 2011

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Who are High Potentials?

High Potentials consistently and significantly outperform their peer groups in a variety of settings.

While achieving these superior levels of performance, they exhibit behaviors that reflect their companies’ culture and values in an exemplary manner.

Show a strong capacity to grow and succeed throughout their careers within an organization – more quickly and effectively than their peer groups do.

Reference: Douglas Ready, Jay Conger and Linda Hill, ‘Are You a High Potential? Harvard Business Review, June 2010

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Growth Potential

Performance

Low Medium

High

Low

Medium

High

9 - Hi Potential Future LeaderSuperior performer. Strong possibility of promotion to next level or beyond within 12 months.

8 - Hi Potential Future LeaderSuperior performer with moderate possibility of promotion to next level or expanded lateral move within organization within 1-3 years.

6 - Hi Potential Future LeaderSolid performer with strong possibilityof promotion to next level within 1-3 years based on increased jobperformance in current role.

5 - Hold for DevelopmentSolid performer in current role. May berelatively new in position and still

growing into job. Promotion likely in 2-3 years.

2 - Watch ListPerformance not good. May be due to change in job scope or wrong job. Due to recent performance trend, potential may be questionable.

3 - Unusual CaseCurrent performance is not good but past performance has been strong (could be short term issue or wrong job, etc.).

7 - Pro in PositionSeasoned Professional. Consistently superior performer, difficult to replace but not likely to be promoted within 12 months.

4 - Solid PerformerPerformance has been solid. Unclear whether individual can grow with the job. Unlikely to be ready for promotion in foreseeable future.

1 - Watch ListPerformance is weak in current role. Individual is doing just enough to get by. Chances of fixing are remote. Consideration should be given toreplacing the individual.

Best Practice Succession Management Tool: GE* Nine Box Model

*GE Crotonville’s Management Training Center

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Succession Plan Organization Name, Department Name ___________________

Key Position Title Incumbent Name

Position Vulnerability

Succession CandidateNames

Open in< 1 Yr

Open in1–3 Yrs

Open in3 + Yrs

Ready in< 1 Yr

Ready in1–3 Yrs

Ready in3 + Yrs

Tool: Sample Readiness Level Chart

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Overall Performance Summary: (Indicate recent performance including major accomplishments or performance issues.)

Key Strengths:(List 2 - 3. Indicate key technical or professional competencies, skills or knowledge the person has.)

Development Needs:(List 2 or 3. Indicate key experiences, skills or knowledge the person lacks in order to move to the next

level.)

Development Actions:

1. On The Job: (What new responsibilities do you plan to assign to help this person develop this year?)

NAME: ________________ TITLE: ________________

Sample Development PlanTool: High Potential Assessment - 1

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2. Special Assignment: (What task force, projects or special assignments will be given this year to aid development?)

3. Training: (What specific training or seminars are recommended this year for his/her development?)

Potential For Promotion:(Indicate this persons readiness to be promoted to the next organizational level.)

Ready now for the next level.

Ready in the next 24 months.

Ready in 2 to 3 years.

Recommended Next Position: (List the next assignment that would most benefit the individual in his/her development.)

Sample Development Plan (cont’d)Tool: High Potential Assessment - 2

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Successful High Potential leaders demonstrate a high degree of Emotional Intelligence and create an environment of positive morale and higher productivity resulted in sustainable employee engagement

Critical EI competencies such as relationship management; cross cultural communication; effective negotiation and conflict management

Reference: Sattar Bawany, Maximizing the Potential of Future Leaders: Resolving Leadership Succession Crisis with Transition Coaching’ in ‘Coaching in Asia – The First Decade’. September 2010 Candid Creation Publishing LLP.; Singapore

Competencies for Development of High Potentials

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Coaching Methodology

CompanyExpectations

IndividualExpectations

Transition Readiness Assessment

CompanyFeedback

IndividualFeedback

Gaps ActionPlan

Gaps ActionPlan

AchievementActionAnalysisAwareness

Reference: Sattar Bawany, The ART of War for Talent, Human Capital (SHRI), Vol. 10 Issue 1 – January 2010 p38-42

Framework for Developing Future Leaders High Potentials


COMPETENCY MODELLING

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What is Competency?

Competencies are the core elements of talent management practicesThey are the demonstrable and measurable

knowledge, skills, behaviors, personal characteristics that are associated with or predictive of excellent job performance.

Examples Adaptability, teamwork, decision making, customer

orientation, leadership, innovation etc.

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Examples of Competencies and DefinitionsAction OrientationTargets and achieve results,overcomes obstacles, accepts responsibility,

creates a results-oriented environment.....

Interpersonal SkillEffectively and productively engages with others and establishes trust,

credibility, and confidence with them

Creativity/InnovationGenerates novel ideas and develops or improves existing and new systems

that challenge the status quo, takes risks, and encourage innovation

TeamworkKnows when and how to attract, develop, reward, be part of, and utilize

teams to optimize results. Acts to build trust, inspire enthusiasm, encourage others, and help resolve conflicts and develop consensus in supporting higperformance teams

L. A. Berger, D. R. Berger. Talent Management Handbook: The Talent Management Handbook: Creating a Sustainable Competitive Advantage by Selecting, Developing, and Promoting the Best People, 2nd Edition McGraw-Hill, 2011

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Why Competencies?The challenge is to identify which competencies the

organization expects to see in their people

The starting point of the model is the creed (values, principles, expectations) and the business strategies

Through a competency model the organization sends a consistent message to the workforce about “what it takes” to be successful in the job

Helps employees understand what helps drive successful performance The Competency Model approach focuses on the “How” of the job. Competency model is behavioral rather than functional, focuses on the

people rather than jobs Competency models are outcome driven rather than activities (Job

descriptions focus on activities, competencies focus on outcomes) Integrates HR strategy with business strategy –both focus on outcomes

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Why Competencies?

The competency model serves as the foundation upon which all workforce processes are built.

Competencies promote alignment of talent management systems by creating a common language that enables these systems to talk with each other! That is, results of one TM system is used as the input data for the following TM system.

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The Competency Model

The Competency Model identifies usually three groups of competencies: Core competencies for the entire organization to shape the

organizational capabilities and culture required to achieve the strategic goals (5 or 6)

Leadership competencies for the management teams of various levels for selection, career planning and development

Functional (technical)competencies (specific for each job family)

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Developing a Competency Model

Use commonly available “ready to use” models with small adjustments for your organization

Develop own competency model with help of external consultants where necessary

Behavioral Benchmarking compare superior performers with other best people in the organization and in other benchmark companies

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Developing Organization’s Own Competency Model Overview of current tasks and responsibilities Come to agreement about what successful “outcome

driven” performance looks like Review of competency library and selection of “must

haves” for the position Rank top competencies as demonstrated by exemplary

(superior) performers Identify of those competencies that align with the vision,

mission and strategic plan of the organization Verify the competencies with a larger sample of the

organization

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Competencies & Talent ManagementTALENT=COMPETENCE+COMMITMENT+CONTRIBUTION

Being competent is not only enough to be a talent The competent person should be committed to the causes

and goals of the organization And should be able and willing to contribute to the success

of the organization So, developing your talent is not enough, the organizations

need to take all the measures to motivate, reward their talent pool to gain their commitment and contribution.

Retention is also essential to gaurantee future alignment of the talent with the right key positions

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Integrative Case Study on Talent Management and Succession Planning

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Succession Planning Process: Identify a critical position in the organization (Ann, the CEO) Delve down three levels below the critical position: no one, then Abby

(Head of HR), and finally Robin (Head of Organisational Excellence)

Looking at this example, what are the potential challenges do you foresee?

Prepare your Group Response on Flipcharts and appoint a Spokesperson to Present to the larger Group

Duration: 15 mins (Discussion) 5 mins (Presentation)

Integrative Case Study on Talent Management and Succession Planning

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Organization Analysis-Job descriptions-Job spesifications

Assessing the Emloyees

A B C D

PotentialCandidates

Performance Evaluation

Buss. ResultsPersonal

DevelopmentActivities

Talent Review

Committees

Potancial Candidates

andSuccession

Lists

Approval of theLists

Analysis

Assessment

DevelopmentTalent Development

Programs

January - April May-June July onwards......

Summary: Talent Management Process

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Summary : Top Lessons Learnt For leading global organisations, both HR and business leaders

recognize that talent is a critical driver of business performance. It comes as no surprise then that talent management practices are often cited as a key strategic priority.

No strategy can be effective without the support of senior leadership and talent management is certainly no exception.

Achieving sustained organizational performance through the development of a capable workforce lies at the very heart of talent management.

The ability to develop next generation of leaders who can effectively face tomorrow’s global business challenges is critical to an organization’s success. But it won’t be easy. You need to invest in it!

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http://www.youtube.com/watch?v=03o1JZ7c7gI

Video: Make Makes a Great Leader?

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If you do tomorrow what you did yesterday

Your Future is History……………

If you do tomorrow what we’ve covered today

Your Future is Historic!!!

Final Thoughts

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Prof Sattar BawanyStrategic Advisor, IPMA Asia Pacific & Managing Director, EDA Asia Pacific

Email: [email protected]: www.linkedin.com/in/bawanyFacebook: www.facebook.com/ipma.singaporeTwitter: www.twitter.com/sattarbawanySkype: sattar.bawany

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IPMA CIMA Key Note Presentation on "Winning the War for Talent" 8 January 2013

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