Aligning Talent to Business Strategy

Paul KasimuGroup HR Director, EABL

Kenya Institute of Management Thursday 27th June 2013

Discussion Areas• Organizational Issues• High Performance Organization• HR & Talent Strategy

"Organization doesn't really accomplish "Organization doesn't really accomplish anything. anything.

Plans don't accomplish anything, either. Plans don't accomplish anything, either. Theories of management don't much matter. Theories of management don't much matter.

Endeavors succeed or fail because ofEndeavors succeed or fail because ofthe people involved. the people involved.

Only by attracting the best people willOnly by attracting the best people willyou accomplish great deeds." you accomplish great deeds."

•General Colin PowellGeneral Colin Powell•Chairman (Ret), Joint Chiefs of StaffChairman (Ret), Joint Chiefs of Staff

Organizational Issues for Business

1. Competitor challenges2. Managing people3. Delivering on customer promise4. Keeping up with technology5. Managing growth6. Compliance7. Shareholder return8. Legislation

Critical Organizational Capabilities

1. Talent: Attracting, motivating and retaining competent and committed people.

2. Speed: Making improvement changes rapidly.3. Innovation: Doing something new in both content and

processes 4. Learning: Learning from successes and failures 5. Accountability: High Performance orientation at all levels6. Efficiency: Effectively managing costs. 7. Collaboration: Working across boundaries to ensure

efficiency and leverage.

8. External Sensing: Linking with external stakeholders 9. Customer Connectivity: Building enduring trust relationships

with the targeted customers. 10. Shared mindset and coherent brand equity: Ensuring that

customers and employees have positive and consistent images of and experiences with the organization.

11. Leadership: Identifying, developing and embedding leaders across levels.

12. Strategic Unity: Articulating and sharing strategies.

Linking HR Agenda to Business Strategy

• Business Medium Term Plan • Business Strategy • HR Vision• Employee Opinion

Key Themes on HR Strategy

• Deliver a High Performing Organisation (HPO)

• Create envied Employer Brand

High Performance Organisation• Institutionalise customer ethos• Attract & retain a diversity of talent• Deploy superior talent to maximise value• Leadership Capability• Improved Performance Management• Build and sustain core capabilities• Organisation Designs

HPO Strategy

HIGH PERFORMING ORGANISATION (HPO)

AGENDA

REWARD

RECRUITMENT/INDUCTION/TRAINING

…COMMUNICATION AND ENGAGEMENT APPROACH…

IMPLEMENTATION THROUGH HR WORKING CLOSELY WITH LINE LEADERSHIP

LEADERSHIP PERFORMANCE MANAGEMENT

TALENT MANAGEMENT &

ACQUISITION

LEADER-LED CHANGE

Create an envied Employer Brand

• Employee proposition divided into:– MACRO– MICRO

Competencies

Competencies

Competencies

Com

pete

ncie

s

Equality and Diversitystrategy

Employee relations environment

Recruitment strategy

Learning andDevelopment

Reward andbenefits strategy

Comms &Public relationsPerformance

managementstrategy

MACRO - All employees

Well being programme

Talent proposition

MICRO - One to one/

line manager delivery

Disciplinary and Grievance

Bonus

Pay andbenefits

Employment policies

PerformanceDevelopment

Exit Policy

LeadershipTalent

Development plan

Health and Welfare

Medical

Comms

Succession planning

External environment External environment

Ext

erna

l env

ironm

ent

Ext

erna

l env

ironm

ent

Employee Proposition

Em

plo

yee

op

inio

n

informs

Group HR

Driving and sustaining a High Performance

Organisation (HIPO)

Group HR

MTP

Busines

MTP

Projects

informs

informs

informs

HR

Strategy

Employee proposition

Employee Proposition

Equality and Diversitystrategy

Employee relations environment

Recruitment strategy

MICRO - One to one/

line manager delivery

D and GBonus

Pay andbenefits

Employment policies

PD

Exit Policy

LeadershipTalent

Development plan

L and D

Health and Welfare

MedicalReward andbenefits strategy

Comms &PRPerformance

managementstrategy

MACRO - Allemployees

Comms

Succession planning

Behaviours

Behaviours

Be

hav

iou

rs

Be

hav

iou

rs

External environment External environment

Exte

rna

l en

vir

on

men

t

Exte

rna

l en

vir

on

men

t

StaffStructure

Strategy Skills

SystemsStyle

SharedValues

Culture

Behaviours

Talent deployment

Learning and Development

Employment policies

Equality and Diversity

Perf Development

MIS

Recruitment processes

HR

Deliverables

Wellbeing

Exit policies- Comp redundancy & VER

Reward and benefits linked to Perf Development

HR capability

Comms

Hig

h P

erf

orm

ing

Org

an

isa

tio

n

Em

plo

ye

r B

ran

d

Bu

sin

esse

s P

rio

riti

es

Customers

HR Capability

HR Strategy

Factors driving Changes in Talent Management

• Economic factors – The transition to a knowledge economy has transformed the way we value Talent, now

required as a strategic asset– Globalization driven by developing economies & emerging markets– Skills gaps still exist as much as there is structural unemployment

• Demographic factors – Generational geographies with a mixture of the retirement of baby boomers though more

significantly growth of Gen Y and "z" in the workplace.– Longer lifespans questioning the retirement of baby boomers– Workplace diversity with an integrated lens on diversity & inclusion

• Technology Factors– Increased expectations– Digitization– Telecommunications

Source: "The Future of Talent Management: Underlying Drivers of Change" - Oracle White Paper, June 2012.

Talent Management – An Overview

Talent management:

The anticipation of required human capital the organization needs at the time then setting

a plan to meet those needs

GET

GROW

KEEP

Talent management: 5 B’s

•Buy•Build•Borrow•Bind•Bounce

16

Example of “Investing in Talent” strategyMethodology

(To verify top talent)Development & Retention Tools Success Factors

• Mid year Appraisal conversations

• Functional Talent matrices

• Performance Talent Reviews (PTRs) and succession planning

• Spotlighting sessions by Exec

• End of Year performance rating calibration

• Talent Pool Succession Planning & PDPs

• Talent Spotlighting• Talent Development Programmes• Recruitment of mid career high

potential talent to shock the system

• Project Teams & Appointments• Talent development budget on:

- Education Sponsorship- International Assignments- Short/Long Term Reward

Incentives

• 100% succession cover for all key roles

• 100% of the Talent to have specific development plans

• <1% regrettable losses

• 100% of the participants targeted will have at least Fully Meets rating

Talent Measures• Human capital ROI • Acceptance rate (%) • Talent resignations (%) • Development actions • Internal promotions (%)• Critical talent performance• Pipeline and back up succession• High incentive ratio

• Next generation leadership– Developing future leaders is relevant now and in the next three years– Organizations must seek a new leadership model for the age of agility– HR executives still need to develop a different approach around development– These strategies must be specific to the business– Organizations must commit to getting the best results

• Accelerating organizational change– The way in which organizations view change as a top trend. "In today's fast-paced environment,

organizations need to adopt a new way of looking at change and become more results-orientated."

• The war to develop talent – Shift to development and upgrading skills as a critical trend– "As businesses struggle to fill critical positions at many levels, companies are putting renewed focus

on building capabilities, not just finding them."

Trends in Talent Management

Source: "Resetting Horizons: Human Capital Trends 2013" Deloitte 2013

• Boards are changing the HR game – a growing number of boards are focusing on the role and impact of talent on business

performance and risk. – Organizations know that developing a strategy without considering the talent dimensions

creates risks. – Boards are recognizing that a business strategy often is a talent strategy.

• Transforming HR to meet new business priorities – Organizations are developing HR capabilities that will not only support the business, but

enable business strategy. – To fulfill its new role in accelerating business growth, organizations are using HR

transformation to design HR and talent systems that can work across geographic boundaries, creating a framework that is flexible enough to support different business models

Trends in Talent Management

Source: "Resetting Horizons: Human Capital Trends 2013" Deloitte 2013

Trends in Talent Management

Source: "Resetting Horizons: Human Capital Trends 2013" Deloitte 2013

Big Question:

What will it take for you to shift the way you treat talent management

today?