EXIT® Magazine “Talent Management as Competitive Advantage within Organizations” 1

DIANOVA EXIT® MAGAZINE "TALENT MANAGEMENT AS A COMPETITIVE

ADVANTAGE WITHIN ORGANIZATIONS" 26th ISSUE 2011

Stacey Minton, Director, Management and Employee Communications Merck Serono S.A, and Internal Communications Working Group Coordinator at

European Association of Communication Directors +visit website http://www.merckserono.com/en/index.html +read full EXIT® (portuguese version) http://www.issuu.com/dianovaportugal/docs/exit_26_gestaotalento Diavona: Defining Change Management as the process of alignment of Leadership, People and Organizational Culture, aiming to a more effective Organization, leads to a first question focused on Leadership. According to Communication Monitor 2010, the Inclusive Leadership style (that name challenges and stimulate shared decision making), specially within private companies (45,3%) or Nonprofit Organizations (46,9%), is positively correlated with job satisfaction and the capability to mobilize people. Would you like to comment these findings? Stacey Minton: When people work for a company, regardless of the industry or the type (private, public, non-profit), they want to feel heard. They want their opinion and their expertise to be valued. And, they want to know that the company places a value on their role in the organization. Being heard helps them to feel a part of the future and of the success of the organization. Today’s employees are more vocal about what is working well and where improvements are needed. And, as the world grows accustomed to having immediate communications channels where they can easily and freely voice their opinions, like Facebook, Twitter, etc., they will expect the same of their employer. It is critical that today’s employer be willing to not only hear from employees but actively engage with employees to ensure dialogue across all levels and functions within an organization. This is a role that should be played by management, with support from Communications and Human Resources.

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At the same time, however, while recognizing the place for inclusive leadership and opportunities for feedback and empowerment of teams, there also must be a final decision-maker in the end. Group decision-making rarely works, but a single decision-maker, armed with information from many different groups with different perspectives, can result in a strong culture founded on engagement and dialogue with employee stakeholders. Dianova: Secondly, and also according to CM 2010, Internal Communication and Change Management are steadily growing (+7,3%) along with Personal Coaching and Training Communication Skills (+9,6%) are the they main expected development of disciplines horizon 2013. In your opinion, why do you believe these trends are (or will be) of such relevance for Organizations’ development? Stacey Minton: Again, as employees feel more and more empowered, and as open dialogue becomes the norm across the globe with social media tools and a focus by employers to engage with and ensure that employees are heard, internal communications is becoming a more important discipline within communications. We are seeing that employees are more frequently ranked as a top stakeholder, with specific emphasis being placed on ensuring that they are as informed and up-to-date as key external audiences. As recruitment and retention of top talent becomes more important as well, a focus on internal communication and ensuring the employee’s voice is heard and considered becomes yet another important aspect of being a good employer. The ever-changing world in which we live, especially in industries such as the financial sector and pharmaceuticals to name a few, also demands that change management become a part of any Organization’s focus. Change is a constant today, and it is imperative that organizations develop strong platforms for responding to and adapting to change, and more important, for ensuring that their employees are a part of the change process, through dialogue and engagement. Dianova: In order to promote a desired positive change, in a roadmap towards sustainability, what would be your advice to Organizations (both for-profit or nonprofit) in terms of how to manage change in harmony with their core values? What sort of procedures and capabilities are required to instill that desired change? Stacey Minton: Key to managing change in line with a company’s values is first and foremost, the willingness to communicate. Employees do not expect that every detail will be shared immediately, but they do want to know what they can expect and when. Clear, concise communications that puts the employee at the heart of the change and anticipates his or her needs as a part of a change program will ensure buy-in as the change becomes tangible. A clear value that must be applied is that of transparency; this does not mean sharing everything as soon as it is known, but it does mean timely and clear communication, with as much detail as possible. An additional requirement for any organization is to provide tools for engagement with the employees. Hearing from them how they are being affected, what they appreciate about the change or what is not understandable to them will help ensure that the ongoing communications platform and resulting change program addresses what the employees need to know.

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Dianova: A Portuguese top search executive and professor argues that “no one, for better leader that one can be, can motivate another person. People cannot be motivated, but can be mobilized”. What’s your opinion regarding this statement? Stacey Minton: There is a common saying that people cannot be motivated. However, an organization can lay the groundwork and provide the right environment so that a person can find his or her own motivation. It is the role of an organization to share news and information in a clear and timely way, provide direction and opportunity for employees who choose to engage, and share a vision for the future. It is the manager’s role to work closely with his or her team to then understand what motivates a particular person and ensure that the right opportunities are available to help build on that inherent motivation. And finally, it is the role of the employee to then seize those opportunities and ensure that he is responsible for creating an environment that motivates and challenges him. Dianova: Social Media are the most expected development of communication channels (+37%), according to CM 2010. Taking into account that Social Media is all about social science and a new architecture of enriched collaboration & cooperation in solving problems, what are the main challenges Organizations still face today in order to embrace these array of opportunities? Stacey Minton: Probably the greatest challenge for any organization in embracing social media tools is being willing to receive both the good and the bad. Social media delivers a new model where organizations can hear the real thoughts of their stakeholders (both internal and external), even if they don’t want to. The challenge for an organization is to be willing to receive the bad – the poor customer service experience, the product that doesn’t live up to expectations, etc. – and to be able to respond to the criticism and learn from and improve for the future. It also requires that organizations be willing to be seen as having flaws, or areas that need improvement. In the past, it was easier to hide potential flaws. However, for companies willing to embrace social media tools and the inherent feedback mechanisms they provide, they can benefit from real and unvarnished feedback that can help them to improve in tangible ways. Dianova: The Social Media participation process should be managed under a humanized approach, focused on 3 pillars: Honesty, Respect, Added-Value. Under an Internal Communication and Social Media (with external impact) Strategies, in your opinion what should be the main guidelines for effective participation in order to prevent negative issues and reputation damage? Stacey Minton: These three pillars provide a perfect framework for implementing social media strategies targeting employees. Organizations must communicate through such channels with honesty, and they must allow employees to do the same. This of course means hearing both the positive and the negative from employees, and welcoming both types of feedback equally. Social media platforms also must demand respect from all participants. This can be challenging in sometimes drawing a line between honesty and respect, but in general, truthful comments, if started in a respectful way, have a powerful role in helping to shape a company and its course. And, of course, any tools implemented must bring some value to the organization. In the case of channels for open dialogue between an organization and its employees, if the dialogue is allowed to be truthful and respectful, it will almost always

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demonstrate added value. Of course, the next challenge is taking the feedback learned from such tools and actually applying it for the future betterment of the organization. Dianova: Last but not least, is Talent management and Internal Communications so different within a for-profit company and nonprofit organization? a. How can you attract and retain The Talent within a nonprofit organization in which eg the stock options or other financial bonus are non-existent? b. Do you consider Talent Managers within nonprofit organizations to be more creative than the for-profit ones in order to achieve the same desired results? Stacey Minton: Having not worked for a non-profit in my history, this is a tough question to answer. However, with the recent financial crisis and its impact on every industry and in every region of the world, the ability of for-profit companies to attract and retain top talent is also a challenge. It requires creativity from all hiring managers and organizations. With that said, though, a key to attracting and retaining top talent is through the managers of an organization. Statistics show that for most employees, it is their manager that makes them want to stay or to leave a company. By focusing on developing strong managers who know how to create an environment that can motivate their teams, and by giving managers the tools to help their teams grow and succeed, it would suggest that significant changes could be seen almost immediately, as managers become better at managing people and creating the right environments for people to succeed. Of course, we cannot under-estimate the financial benefits that people expect, but assuming that there is some competitive level of benefits, statistics also show that employees will more often choose a job that offers them a new challenge, an opportunity that they find motivating, or an environment where they can see potential growth for themselves.

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