Jobstreet Talent Wars II - Riding The Recovery Wave

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


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


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

•Google

•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





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'


• 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


• 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



• 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


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



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


•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


•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





Management systems



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



Management systems



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’


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


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”)


Reality #2

Tangible C&B

Attraction


Reality #3

In-Tangible C&B

Retention


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

http://upload.wikimedia.org/wikipedia/commons/8/8c/Standard_deviation_diagram.svg

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/