Knowledge Transfer and the Changing Workforce Simon Herriott, Managing Director, DuPont Sustainable Solutions November 2, 2011.

Knowledge Transfer and the Changing Workforce

Simon Herriott, Managing Director, DuPont Sustainable Solutions

November 2, 2011

Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

The Issue

“Population aging is unprecedented, a process without parallel in the history of humanity…”

• United Nations, World Population Ageing Report, 2007

By 2020:

• Most developed countries will have more than 35% population over 50

• In Asia Pacific alone, 50+ population will grow almost 5 times faster than the total population growth and will represent almost 1 billion people across the region

• Retirement ages are rising (~ 65) meaning more older workers


3

Several studies on the Effects of Aging in relation to safety of the older worker…..

Sources: Liberty Mutual Research Institute Quarterly Review 2007Dr Monika von Bonsdorff, et al, Finland, Journal of Occupational and Environmental Medicine, Volume 52, Issue 12, December 2010.


4

Workforce is not just aging, but changing……

Source: Managing Generation Y in the Workforce: Corporate Executive Board: Asia HR Executive Board 2011

Born Age% of

global workforce

Typical Level Stereotypes

Boomers 1946-64 47-65 27

LoyalTech-challenged

Wealthy

Gen X 1965-79 32-46 40

Attached to FamilyCynical

Individualistic

Gen Y 1980-89 22-31 33

EntitlementIrrational/Obsessive

Tech-savvy


Age 60+ Population in 2000

5Source: U.S. Census Bureau 2000

Under 5% 5% to 12.4% 12.5% to 20% Above 20%


Age 60+ Population in 2025

Source: U.S. Census Bureau 20006

Under 5% 5% to 12.4% 12.5% to 20% Above 20%


Growth in the Working-Age Population- or should we say Decline?

7

Mexico Brazil India SouthAfrica

China SouthKorea

Australia Canada US Nether-lands

Spain France Russia UK Japan Germany

Italy-50%

0%

50%

100%

150%

200%

62%

18%

1970-20102010-2050

Source: Deloitte Research, It’s 2008: Do You Know Where Your Talent Is? Why Acquisition and Retention Strategies Don’t Work


Growth of US Workforce - 2000 to 2020

8

under 14 15-24 25-34 35-44 45-54 55-64 65+-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

7% 8% 7%

-10%3%

73%

54%

Source: US Census Bureau

Rapid growth in the over 55 workforce

Declining number of mid-career workers

Fewer younger workers entering

1 2 3


US Fatal Occupational Injuries: Age

9

18-19 20-24 25-34 35-44 45-54 55-64 65+0

2

4

6

8

10

12

14

2.4 2.3 2.32.8

3.44.1

11.5

Age of Worker

Fata

lities

Per

100

,000

Wor

kers

Source: NSC, Injury Facts


Challenges to U.S. Workforce

Aging workforce,

Changing attitudes/motivations

Knowledge Transfer

Limited availability of key skills

• Shrinking skilled worker pool

• Cannot count on sending countries for skilled workers

• International competition for talent

Changing face of work – global, virtual, independent

Retaining and growing intellectual and experience assets

Continuing to develop diversity

• Race

• Gender

• Generations

• Culture

10


11

So what?


12

Work processes/Technologies

Reward/Motivation

Tasks/Functions

SystemSupport

ResourcesPeople

Understanding and managing the people element is critical for sustainable performance excellence .

While technologies and systems become more complex, people, as the ultimate decision makers,

play an even more significant role.


…it needs an approach that puts people at the center

Source: DuPont Sustainable Solutions

People• Generational attributes• Value and expectations• Ethics, Culture,

Background• Sub-Cultures

Work/Life balanceProductivity

Engagement/Social Support

CompetencyCapability

MotivationAttitude

Physical/Functional Capability

Growth/ Learning

Source: DuPont Sustainable Solutions 13


Changing Workforce: Challenges and Opportunities

• Adds complexity to people issues e.g., training, engagement, reward, communication.

• It is a systemic change.

• Business risks? Performance risks? Operational risks? Are those tasks/processes designed 20 years ago feasible for today’s workforce?

• Increased operating complexity demands seamless teamwork and collaboration

• Managing it well leads to strategic advantage (beyond managing the demographic issue)

14


An Integrated Approach

15






MotivationAttitude


Growth/ Learning

• Knowledge Transfer• Individual development plans• Offer blended feedback mechanisms• Use blended learning approaches – for all

ages

• Identify critical functions/Skills• Recruit and manage talents • Target competency• Leverage contingency planning

and succession planning

• Re-careering incentives• Offer blended performance incentive

options• Track performance

• Integrate S&H promotion/screening

• Offer incentives for wellbeing programs

• Provide healthy work setting/schedule

• Match functions and capabilities

• Target risks• Work re-design

• Offer work extension • Re-careering options• Re-training• Flexible work organizations

• Cultivate communities• Use team approach• Understand

generational attributes• Embrace differences -

no right or wrong




16






MotivationAttitude


Growth/ Learning

• Identify critical functions/Skills• Recruit and manage talents • Target competency• Leverage contingency planning

and succession planning


Recruitment

TalentManagement

Performance Partnership

Learning and Development

OrganizationalAssessment

Establish criteria for candidate selection.

Provide the skills necessary for success in the position.

Integrate Job/Position requirements into testing and assessment tools.

Establish criteria for promotion and personnel movement.

Manage projects and global assignments based on required skill sets.

Measure performance criteria and skills by employee and across employees.

Assess performance results consistently.

Identify appropriate learning opportunities and strategies to support employee development.

Complete organizational “strengths” and “needs” analyses.

Assess organizational capabilities and develop workforce planning strategies.

Jobs & Positions

Competencies

Competencies and Capabilities become the foundation of people development


Identify Critical Skills

18

High/Immediate

Low/not immediately foreseeable

Critical Functions

Critical Skills

Low High

Skill Replacement

Difficult

Easy

• Supply• Training requirements• Complex/experience-intense• Skill maturity period• Multiple interfaces


Skill Replacement Factors Attrition Concern1 2


Organizational Competency Building and Retention

19

Identify Critical Skills

Retention

TalentRecruiting

KnowledgeTransfer

Target TalentInternal Talent

Work-extensionRe-careering

Performance support system

Mentoring/coachingCritical event interview/reviewJob shadowingStorytelling

Work re-organization

Outsourcing potentialExternal Talent

Center of Competency for SHE

Global CoC – others include Engineering, Capital, Operations

Central custody of Standards

Deep specialist subject matter expertise

Development center for regional/local SHE resources

Support SHE Governance and Assurance for Board

Strategic Direction for SHE

Subject Matter Expertise

Updating and keeping the standards current

Influencing from centre

Assess and fill SHE Resource needs of the sites and center

Development of SHE competencies in sites and center

Tracking metrics and 2nd & 3rd party audits

External face for SHE related matters

Criti

cal R

esou

rce

as

wor

kfor

ce c

hang

es



21



Growth/ Learning

• Knowledge Transfer• Individual development plans• Offer blended feedback mechanisms• Use blended learning approaches – for all

ages



What is Knowledge Management?

• KM = leveraging of collective wisdom to increase responsiveness and innovation

• A dynamic knowledge management system for a viable strategy for the changing workforce

Primary repository for knowledge is in peoples’ heads

Here it coexists with intelligence and experience – comes “out” as knowledge when decisions need to be made

Is contextual – ie. Determined by the circumstances under which the individual learned the knowledge

Is dynamic – ie changes with new experiences and stimuli

• Pivotal issue is the creation of a culture to support trust and collaboration

Bulletpoint article (May 1998) – biggest source of disappointment with KM practices is cultural change

• “the greatest difficulty lies not in persuading people to accept new ideas, but in persuading them to abandon old ones” (JM Keynes)

• It is NOT a storage capacity for accumulated information

Need to treat electronic & paper repositories as intermediate storage for info in transit “between” peoples’ heads

Knowledge Management – understanding the nature of knowledge

Explicit = articulated in formal language

Tacit = personal knowledge embedded in individual experience (includes beliefs, perspectives, instinct, values) Most organizational knowledge is tacit and destined to remain so

Conveying knowledge is about building a bridge between a knowledge seeker and provider

Knowledge Type

Management Challenge Best Transfer Mode Timing of Transfer

Explicit Quantity & Accessibility Electronic (efficiency)Synchronous or Asynchronous

TacitInterpretation &

ArticulationFace to Face (depth,

context) Synchronous


Knowledge Management Applications

• A model to demonstrate how knowledge is shared across the organization (Nonaka):

• 4 applications of knowledge management:

Intermediation – the brokerage of bringing those who seek knowledge to those that provide (may be real-time or transferred thru storage)

Externalization – the classification of knowledge in its external repository. The establishment of rules, methods for capture, storage and retrieval:

Internalization – the connection of knowledge to inquiry and the personal internalization of the knowledge through lens of personal experience

Cognition – process of making decisions based on individual’s knowledge ie. Its application.

DUPONT CONFIDENTIAL

Technology & Knowledge Management

Explicit Knowledge Tacit Knowledge

IntermediationPersonal Profiling Systems, Groupware applications (on-line meeting places),

Communities of Practice

ExternalizationDocument Management, taxonomies, visualization

Mentoring

Internalization Search and Retrieval Agents, Portals Apprenticeship

CognitionWorkflow, decision-support, decision trees, case mgt portals

Intuition


Knowledge Management

26

Knowledge Transfer Strategy Types of Knowledge/Skills

Mentoring/Coaching Complex and sophisticated content. Interactive progressive learning. Critical skills

Critical Incident Review Specific and situational knowledge and experiences. Contextual complex knowledge. Critical skills.

Job Shadowing Hands-on practices. Complex content. Critical skills.

Storytelling Less structured. Effective for transmitting wisdom, emotional and relational knowledge and asset.

Communities of Practices Common problems, topics and issues.

Process Documentation Standardized repeatable process. Limited and special variations.

Job Rotation Skill broadening and enrichment. Complementary skill-set.

Expert System Problem specific. Trouble shooting, e.g. help desk.

Electronic Knowledge Management Systems

Knowledge that can be captured by texts or images.

Job Aids Standardized, simple, and limited variation content, e.g., checklist.

Tapping Retiree Base Experience-based. Client –relation. Best practices, e.g., online or video-conference

Reference: William Rothwell, IPMA-HR News, Feb., 2004

Organizations typically go about Learning & Development in one of two ways


Align learning needs with business objectives. Build curriculum

Developing culture of learning incl competency metrics and linkage to KPIs

Planning and delivering learning thro’ appropriate delivery mechanism

Building, buying and reusing learning content

Learning and Development Process

PLANNINGPLANNING

DESIGN & DEVELOPMENT

DESIGN & DEVELOPMENTADMINISTRATIONADMINISTRATION

DELIVERYDELIVERYCONDUCIVE ENVIRONMENT –M’MENT SYSTEMS

CONDUCIVE ENVIRONMENT –M’MENT SYSTEMS

Enabling learning management incl. tracking and measurement

Levels of Learning

Proficiency

Make decisions, Use judgment,Apply Experience,

Applies the knowledge in day-to-day operations

Is aware of the basicsKnows his roles and Responsibilities

Delivery Methodology

Simulation, On-the-job Application,Rich contentCoaching / quality critique

Engaging involvementPractice activities provide feedback

Engaging involvementRetention / “refresher” activities

Champion/Specialist

Skills

Knowledge



30






MotivationAttitude


Growth/ Learning

• Offer work extension • Re-careering options• Re-training• Flexible work organizations



31

Variation of Preference for Work-Life Balance by Age


Examined employee health care costs and

absenteeism over a 2 year period5:

• No significant differences in health case

costs

• Significant negative association between

participation and absenteeism;

• Cost savings of $15.60 for every dollar

spent on the program

Worksite Health Promotion Programs Yield an

Average Return on Investment of Nearly $4 for

Each $1 Spend on Direct Health Care Costs1

Reduce the Cost of Absenteeism by $5 got

Every $1 Spent

In 22 Studies reviewed – the average ROI

was $5.81 per dollar spend on the program4

Workplace Health Promotion

32

Review of 42 Published Studies of Worksite

Health Promotion Programs Shows2:

• Average 28% reduction in sick leave

absenteeism

• Average 36% reduction in health costs

• Average 30% reduction in workers’

compensation and disability management

claims costs

• Average savings of $5.93 for every $1

spent

Harvard Business Review3 “Fruits of Workplace

Wellness”

• Lower Costs – Claims $1,5000 higher in

non participants (H-E-B Supermarket

Chain); Moving 10% of employees from

high/medium risk to low yields ROI

estimate of 6 to 1

• Greater Productivity – Lost productivity

costs 2.3x higher than medical & pharmacy

costs

• Higher morale – no data

1. Anderson, E. Wellness Councils of America, 2002. 2. Aldana SG. Financial impact of health promotion programs: a comprehensive review of the literature. Am J Health Promotion, 2001; 15(5):296-320. 3. Berry, Mirabito & Baun, What’s the Hard Return on Employee Wellness Programs? Harvard Business Review (Dec 2010). 4. Naydeck, BL, et al. 2008. The impact of the Highmark employee wellness programs on 4-year healthcare costs. JOEM:50:146-156. 5. Aldana, SG, et al. 2004. Financial impact of a comprehensive multisite workplace health promotion program. Preventive Medicine; 40;131-137

Source: Source: Goetzel and Reuters, Value in Health Care, Institute of Medicine (2010)



33






MotivationAttitude


Growth/ Learning

• Cultivate communities• Use team approach• Understand

generational attributes• Embrace differences -

no right or wrong



The Power of Networks….from Talking Shop to Learning Shop

• Generation Y get it

• They exist anyway – harness them

“Communities” already exist – the “grapevine”, informal networks – built on trust

Need to recognize, support and administer the connections (managed badly they undermine formal structures)

• Clear objectives , less clear outcomes

• Strict ROI measurement is kryptonite for networks

Networks: A Case Study – DuPont Corporate Electrical Safety Team (CEST)

35

Objectives Deliverables Critical to Success

Key Themes/Characteristics

Zero Injuries from Electrical Hazards

Best Practice sharing

External perspectives

• Continuous Improvement & Change Management

• Defined workstreams, SMEs as members

• Knowledge Intensity & Institutional Memory

• Engagement

Zero Incidents involving electrical energy

Analysis of KPIs Flexible structure/ Membership

Discovery Performance Dashboard – esp. leading indicators

Institutionalizing Memory



36






MotivationAttitude


Growth/ Learning

• Re-careering incentives• Offer blended performance incentive

options• Track performance



37

Effort is not determined by generation



38

Highest Rated Job Preferences vary little by generation


Intrinsic (Internal)

• Motivated by personal inner drive: personal growth, personal values, beliefs, attitudes

• Attend a course for the commitment to learning (a carrot)

Extrinsic (External)

• Motivated by external factors: prestige, money, success, promotion

• Attend a course for the benefit brought about by a qualification or compliance (a stick)

Two types of motivation



40






MotivationAttitude


Growth/ Learning

• Integrate S&H promotion/screening

• Offer incentives for wellbeing programs

• Provide healthy work setting/schedule

• Match functions and capabilities

• Target risks• Work re-design



What is aging?

Aging is a multidimensional process of physical, mental, psychological, and social change.

41


Implications of Aging Workforce

42

Physical Capacity Mental Capacity• Maximum strength peaks at age 20-30• Reduced flexibility, balance, increased

reaction time• Older adults work closer to their

maximum capacity• Slow recovery

• Tests showed that learn and recall slower

• sensitive to socioeconomics, • not translating well to work performance

• Other factors that influence performance of older workers

• work engagement• working relationship • Interest in learning new things

Advantages of Older Worker• Attitude and Ethic• Experience and Judgment• Flexibility

But then,


Generational Attributes and Workplace Adaptations

43

Traditionalists1928 – 1945

Boomers1946 – 1964

Generation X1965 -1981

Generation Y/Millennial1982-2000

Leadership Command andControl

Get out of the way Coach Partner

Learning Style Classroom Facilitated Independent Collaborative/networked

Decision Making Seeks approval Team informed Team included Team decided

Feedback No news is good news

Once a year Weekly Immediate/on-demand

Views of Authority

AutomaticRespect

Love/hate Not intimidated Impatient

Technology Use UncomfortableAvoid if I can

Unsure Unable to work without it Unfathomable if not provided

Job Change Unwise Sets me back Necessary Part of my career routine

Particulartrait

ConservativeLoyal

Strong work ethic Independent Conscious of globalizationEmbrace diversity

Training Additionalrequirement

Not too much Required to keep me Continuous and expected


…it needs an approach that puts people at the center







MotivationAttitude


Growth/ Learning

Source: DuPont Sustainable Solutions 44


45

Knowledge Transfer and the Changing Workforce Simon Herriott, Managing Director, DuPont Sustainable Solutions November 2, 2011.

Documents

trademarks of dupont

dupont oval logo

registered trademarks

dupont sustainable solutions

miracles of science

total population growth

workingage population

growth of us workforce