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Jobstreet HR Networking Event KL, 22nd July 2010 Jobstreet Talent Wars II - Riding The Recovery Wave 1. Post-recession and the staff retention implications 2. Talent Wars in the New Economy 3. Aligning Staff Retention strategies with your company’s Business Model 4. Optimizing Compensation & Benefits to match Staff retention Strategies 5. Developing a Talent Management system 6. Retaining ‘Swing’ employees and non-conventional strategies to Staff Retention 7. Motivating & Engaging Employees vs. Retention 8. Addressing the Talent Scarcity problems
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TALENT WAR II: RIDING THE RECOVERY WAVECase Study, Concepts and Debatable Ideas
Kenny OngCNI Holdings Berhad
Intro: CNI
1. 21 years old
2. Core Business: MLM
3. Others: Contract Manufacturing, Export, Trading, F&B, IT, eCommerce
4. Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam
5. Staff force: ± 450
6. Distributors: 150,000 (Malaysia)
7. Products: Consumer Goods and Services
Intro:
“Cow don’t drink water cannot push cow head down”
POST-RECESSIONTalent Wars II
The New World…
13th April 2009
•Two Domino’s employees
•YouTube
•Apology from Domino’s after 48 hours
•1 million hits
•Twitter: questions on silence
•LinkedIn: suggestions by users in forum
BusinessWeek, May 4, 2009
The Recession Days
Post Recession Trends and Implications
No trust in Big Companies
No trust in Experts
No trust in Best Practices
Cash Flow issues
M&A&D increase
Malaysia no big effect
Decrease in Offshoring
Seniors working longer, re-entry
Part-timers and Freelancers
Post Recession Trends and Implications
Industry Convergence/ Extinction
Social Networking
Green & CSR
Non-Profit/NGO increase
Increased RegulationsAuditors, Lawyers, Civil Servants, Consultants, Documentors
Most Popular Question
“When will we return to the last time?”
Wrong Question
TALENT WARS POST-RECESSION
Talent Wars II
Talent Wars: Pre- and Post- Recession
Last Time• Beg
• Buy
• Borrow
• Steal
Today• Beg <harder>
• Buy <@ higher price>
• Borrow <from diff. people>
• Steal <more often>
The New World…with New Problems
13th April 2009
•Two Domino’s employees
•YouTube
•Apology from Domino’s after 48 hours
•1 million hits
•Twitter: questions on silence
•LinkedIn: suggestions by users in forum
BusinessWeek, May 4, 2009
Question 1: Talent Management for Who?
Excellent
Very Good
Average
Not Good
Commit Suicide
Question 2
What is the Objective of Talent Management?
Intro
Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”
Sergio Zyman
“Retention and Loyalty are useless if No Conversion is happening.”
Intro
“Retention and Loyalty are useless if No Conversion is happening.”
“Retention and Loyalty are useless if No Performance is happening.”
Intro
Loyalty is misleading…
• Heavy Consumption ≠ Loyalty
• Loyalty ≠ Heavy Consumption
• Good Performance ≠ Retention
• Retention ≠ Good Performance
Intro
Talent Management
• Succession Planning ≠ Business Continuity Planning
• Talent Management = Sustainable Business Performance Management
Before we start…
1. Who designs your Talent Management programs?
2. Are you in the Talent Pool?
3. Do you qualify?
4. “It takes a crook to catch a crook”
PRE- AND POST- RECESSIONState of the Economy:
Warning Notice
It’s not about the economy
It’s about your company
Budgeting vs. Priorities
Upturn Flat Downturn
Fight Complacency
Sharpen Edge
Keep Momentum
Conquer
NPD Cycle Time
Improve Edge
Extensions
Counter Competitor
Innovation
Acquire
Profits
Build momentum
Sales
Cash Flow
Focused on ‘Breakthrough’
JV, In-source, Out-source
Eliminate bottom 20%
Improve Top 15% revenue-generating products
↓ R&D, ↑Sales
Example: Business Situation vs. R&D Priorities
Business Situations vs. HRM
Upturn Flat Downturn
Fight Complacency
Sharpen Edge
Keep Momentum
Conquer
‘Change’ mgmt
Reduce Fat
Continuity
Everyone Happy
Innovation
Acquire
Profits
Build momentum
Sales
Cash Flow
Talent Mgmt
Innovation/R&D
Early wins
Slow Down HR Costs
Top Talent focus
Sales, Sales, Sales
Increase attrition
Motivation
Business Situations vs. HRM
Upturn Flat Downturn
Fight Complacency
Sharpen Edge
Keep Momentum
Conquer
‘Change’ mgmt
Reduce Fat
Continuity
Everyone Happy
Innovation
Acquire
Profits
Build momentum
Sales
Cash Flow
Talent Mgmt
Stack R&D
Early wins
Slow Down HR Costs
Top Talent focus
Stack Sales
Increase attrition
Motivation
•Projects•Job Ads•Communication•F/L Manager Com.•Middle Management•Involvement (survey, suggestions)•Realistic Goals•Controllable KPIs (customer satisfaction, production)
Activity Grid to determine budget priorities
Increase (↑)What are features/
activities/services to increase?
Create (+)What are features/
activities/services to introduce?
Reduce (↓) What are features/
activities/services to reduce?
Eliminate (-)What are features/
activities/services to eliminate?
1. Manage conflicts where limited resources should go2. Solve problem of compounding activities & resources
Business Situation vs. Post-Downturn
•Strong supply of goods and weak demand
•Huge amount of money being pumped
•Combination of slow growth and surging inflation
•CPI•Real estate values •Savings rate
•CPI •Commodity prices •Government debt as a % of GDP
•Misery Index, = Unemployment + Inflation Rates
•Short-term•Technology
•Pegged to inflation •Commodities
•Conservative•High-quality growth
Deflation Inflation Stagflation
Businessweek, 22nd June 2009, “Pick Your Poison”
Source
Indicator
Investment
10 Questions for CFOs – post recovery1. Recovery shape?
2. Restructured enough?
3. Supply Chain flexible?
4. Acquisition targets?
5. Restart alliances?
6. Divest underperforming businesses?
7. Financial resources for upturn?
8. Buying talent, marketing, R&D?
9. New risks?
10.How to sell recovery plan to investors?
McKinsey & Company, May 2009, “What’s Next - 10 Questions for CFOs”
Business and Talent Management
The Business of business is business, not Talent Management
“Hope is not a strategy”John Maxwell
What is the Business Model?
USP
Market Discipline
Profit Model
•Tata Nano
Intro: Market Discipline"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
OperationalExcellence
CustomerIntimacy
•Air Asia
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Alignment & Consistency: Market Disciplines
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Market Disciplines
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Market Disciplines
HP well-balanced portfolio, mass customization
Acer super lean cost structure, aggressive pricing
Apple powerful products, premium
pricing, limited range
Still Doing well in 2009
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Strategy: Market Disciplines
• Operational Excellence• Move know-how from top performing
units to others• Benchmark against best in class• Ensure operations training for all
employees• Use disciplines like TQM for continuous
learning to reduce costs and improve quality
Alignment & Consistency: Market Disciplines
Alignment & Consistency: Market Disciplines
• Customer Intimacy• Capture knowledge about customers• Understand customer needs• Empower front line employees• Ensure that everyone knows the
customer• Make company knowledge available to
customers
• Product Leadership• Reduce time to market• Commercialize new products fast• Ensure that ideas flow• Reuse what other parts of the company
have already learned• Ensure there are multiple sources of
funding
Alignment & Consistency: Market Disciplines
The McPlaybook*
Make it easy to eat• 50% drive-thru• Meals held in one
hand
Make it easy to prepare• High Turnover• Tasks simple to learn
& repeat
Make it quick• “Fast Food”• Tests new products
for Cooking Times
Make what customers want• Prowls market for new
products• Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
Operational Excellence
Operational Excellence
Customer Intimacy
Customer Intimacy
Product Leadership
Product Leadership
Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Business Model vs. Talent & Performance Management
Operational Excellence
•Central authority, low level of empowerment•High skills at the core of the organization
•Disciplined Teamwork•Process, product- driven•Conformance, 'one size fits all' mindset
• Integrated, low cost transaction systems•The system is the process
•Command and control•Quality management
Operational Excellence
•Central authority, low level of empowerment•High skills at the core of the organization
•Disciplined Teamwork•Process, product- driven•Conformance, 'one size fits all' mindset
• Integrated, low cost transaction systems•The system is the process
•Command and control•Quality management
Organization, jobs, skills
Management systems
Information and systems
Culture, values,norms
Business Model vs. Talent & Performance Management
Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Product Leadership
•Ad hoc, organic and cellular•High skills abound in loose-knit structures
•Concept, future-driven•Experimentation and 'out of the box' mindset
•Person-to-person communications systems•Technologies enabling cooperation
•Rewarding individuals' innovative capacity•Risk and exposure management•Product Life Cycle profitability
Product Leadership
•Ad hoc, organic and cellular•High skills abound in loose-knit structures
•Concept, future-driven•Experimentation and 'out of the box' mindset
•Person-to-person communications systems•Technologies enabling cooperation
•Rewarding individuals' innovative capacity•Risk and exposure management•Product Life Cycle profitability
Business Model vs. Talent & Performance Management
Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Customer Intimacy
•Empowerment close to point of customer contact•High skills in the field and front-line
•Customer-driven•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and external information
•Strong analytical tools
•Customer equity measures like life time value•Satisfaction and share management•Focus on ‘Share of Wallet’
Customer Intimacy
•Empowerment close to point of customer contact•High skills in the field and front-line
•Customer-driven•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and external information
•Strong analytical tools
•Customer equity measures like life time value•Satisfaction and share management•Focus on ‘Share of Wallet’
Business Model vs. Talent & Performance Management
Revenue
Base Retention
Share Gain Positioning Adjacent Market
New Business
Financial
Learning & Growth
Internal Process
Customers
Cost Margin
For those obsessed with Balanced Scorecard
Cash Flow Asset
Operational Excellence
Product Leadership
Customer Intimacy
Investment Strategy
Competencies Information Systems
Motivation, empowerment,
alignment
Satisfaction
Targeting, Segmentation and Selection
If everyone is doing it, best practices is the same thing as mediocre
Two Types of Segmentation for HRM
1. Demographic segmentation
2. Talent segmentation
Demographic Segmentation - General
Veterans (Pre-Boomers)1934-1945
Boomers1945-1960
Gen X (Cusper, Buster)1960 - 1980
Gen Y (Millennials, Netster)
1980+
Demographic Segmentation - others
1. Women, Working Mothers
2. Youtube generation
3. Working retired
4. Social Activists
5. Work/Life balancers
6. Industry (ICT, Advertising, Engineer, Accounting, Lawyer, etc.)
Talent Segmentation
• Who are your Talents?
: A Talent for others does not mean a Talent for you
Talent Segment Targeting
• Unwanted by big MNCs• Small companies• Boring Environment• No Growth/Learning• No MBA• Passion, Values, IQ (streetsmart)• Appreciate Chaos• Multitask• Passion to Learn
Talent Segmentation
Group I
(Talent Pool)
23
45
PE
RF
OR
MA
NC
E
2 3 4 5
POTENTIAL• Identify
Talent Segmentation
Group I
(Talent Pool)
Group II
( Potential)
Group III
( Performance)
Group IV
(Counseling)
2 3 4 5
23
45
PE
RF
OR
MA
NC
E
POTENTIAL• Identify
Branding, Positioning and Attraction
You attract who are, not who you want
Reminder:
“Cow don’t drink water cannot push cow head down”
Before we proceed…
Reality #1
Cash is King
(a.k.a. do not trust consultants’ “surveys”)
Before we proceed…
Reality #2
Tangible C&B
Attraction
Before we proceed…
Reality #3
In-Tangible C&B
Retention
Before we proceed…
Reality #4
In-Tangible C&B
Tipping Point for Attraction/Retention
Branding and Positioning:
“You don’t attract who you want. You attract
who you are”John Maxwell
What needs work?
Current Brand
Impo
rtan
ce t
o T
arge
t S
egm
ent
High
Low
Weak Strong
High Salary
Career Opportunities
Familiarity with Tasks
Training Opportunities
Attractive Location
For people like me
Fun place to work
Expected success of application
Innovative company
What needs work?
Current Brand
Impo
rtan
ce t
o T
arge
t S
egm
ent
High
Low
Weak Strong
High Salary
Career Opportunities
Familiarity with Tasks
Training Opportunities
Attractive Location
For people like me
Fun place to work
Expected success of application
Innovative company
Branding and Positioning: Side Notes
1. What’s your main Differentiator?
– Money? Opportunity? Big Projects? Big Clients? Career Growth? Environment? Love and Fresh Air?
2. Hire Strict. Refuse if possible.
3. Look for Passion, IQ, and the “Unwanted”
4. Who you retire determines who you attract
Retention, Engagement and Motivation
Employees are not your assets. Good Employees are your assets
Reminder…
Reality #1
Cash is King
Reminder …
Reality #2
Tangible C&B
Attraction
Reminder …
Reality #3
In-Tangible C&B
Retention
Reminder …
Reality #4
In-Tangible C&B
Tipping Point for Attraction/Retention
The 51.28% Theory
• Resign = Push + Pull > 51.28%
• If staff is Happy:=> 0 + Pull > 51.28%
Retention
Retention
Experience Swing Ex
Oppose
Retention 1: Experience
Loyalty = Experience vs. Expectations
Solution Strategy: Talent Management Plan
Loyalty 1: Experience• Talent
Management Plan
PhilosophyOJT, Mentoring, Big-5, LP, PDP, SDP, Projects,
P/P Grid, SP Table, PDP, Premium,
Q12, C&B, ACDP, SCL, Transfers, Events, Recognition
P/P Grid, Q12, PA, SDP, SP
Development
Motivation
Selection
Evaluation
Loyalty 2: Swing
Loyalty = Best alternative at the current moment until I find another alternative
Solution Strategy: Improve your Talent Management Plan, Try Your Best, or Live with It
Loyalty 2: Swing
Swing Talents are “loyal” because:• Individual Relationships• Convenience (at that point in time)• Contractually tied-up• Direct Incentives*• No better alternative• Subordinates• No known alternative• CV friendly
Post-Recession
Retention
Experience Swing Ex
Oppose
Post-Recession
Swing Loyalty: Try Your Best…
1. Over Promote
2. Loans
3. Spot Bonuses
4. Block recruiters
5. The Spouse
6. Toys
7. Glorified Titles
8. Forced Ambassador
9. “Position” the competition
10.Sell the Dream
11.Give them a Best Friend
12.Internal Trainer
SCL: Specialist Career Ladder
•Telco, •Outsourcing, •Aerospace, •Biotech,•Digital media, •Animation, •M&A•Financial forensics
Associate Specialist (2)
Specialist (4)
Consultant (4)
Principal Consultant (1)
SCL: Specialist Career Ladder
General incentives & privileges:
a. Extra monetary incentive
b. Official Specialist / Consultant job title.
c. Higher external training subsidy limit by company.
d. Tie-pin or pin
e. Certificate
f. Additional benefits
General qualifying/re-qualifying criteria:a. Meet the competency criteriab. Performance min B, PEDc. Min. 40 training hr/yeard. Physical contribution: i Mentoring ii Write-up iii Speaking iv Multimedia recording v R&D publication / Thesis
Motivating Talent
Hope
Control
Motivating Talent
Passion Job
GrowthTalent
Minimum Motivation Target: 2 out of 4
Delegation
Curse of the Bell Curve
‘A’ Staff
‘B’ Staff
‘D’ Staff
‘E’ Staff
‘C’ Staff
End Notes & Start Up
The end of the Beginning
Talent Scarcity and Brain-Drain Problem
1. Change your Business
2. Change your Business Model
3. Re-locate
4. In-Source
5. JV or Partnership or Swap
6. Create micro Business Units
7. Over Promote
8. Over Pay
9. Contractual tie-up
10.Hire Low, Train High
For Starting Up…
1. Get the Business Strategy right
2. Link TM to Strategy (e.g. BSC)
3. Clarify the TM Philosophy
4. Strengthen Performance Management System
5. Redirect Funds ($$)
6. Design simple processes
7. Develop and Reward focused on Talent groups
8. Communicate throughout
9. Fish where the Fish are: JOBSTREET.COM
In the end…
• Great Wall of China– humans are the weakest link– bad treatment of staff will lead to weak link i.e.
easier to bribe, easier to con, etc; – bad treatment examples: insulting, lose face,
broken promises, no dignity, public criticism, restructure without communication
Other thoughts…
1. Big matters/Small Matters
2. Differentiate of Die
3. Define “Talent”
4. No “Jerk” rule
5. Flat Structure?
6. The Jerk Boss
7. All aspects
8. Hire Strict
Don’t forget…
“The business of business is Business,
not Talent Management”
Summary
Segmented & Targeted
Attraction, Retention and Succession
STARS™
Thank You.
soft copy of slides: http://totallyunrelatedrandomanddebatable.
blogspot.com/
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