CSTD Beijing

Organization Development

Beijing, May 5th 2012

Content Introduction

Objective and expectations

What is OD?

Why OD?

What are the benefits?

Top 100s Best Practices & Cases

The China Practices: Misconception in the market place Why?

OD - Where does it start? What does it link to?

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Content Critical parts of OD

Organization Structure and Processes Workforce Planning (Job Families and Role Competencies) Talent Management (Career and Succession management) Management Development – “filling the Gaps”

Top 100s’ Practices

3

All participants to learn about Organization Development:What is it? How is it being done? What to focus? Processes and Steps

Sharing the Best Practices and methodology

Take away some tools

4

Objective & Expectation

Your Expectations

希望能对 OD 有一个全面的了解，建立 OD 意识和思维模式 OD 的理论基础、实际操作工具及对 OD 从业人员的职业要求国内 OD 的发展情况 实践案例——世界 100 强的 OD 发展 , 尤其是在领导力

发展方面

5

Question

What is the greatest challenge(s) that your Organization is facing today?

Is it Shortage of Talents?

Is it Business Strategies?

Or …….

Quick Exercise:

Take 5 minutes

Discuss in your group/table

Share findings with all

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Greatest challenge(s) ?

Organization Development

-What is it? - Why OD? - What are the benefits of doing OD? -Top 100s Best Practices -The China market place Misconception – why?

Exercise:At your table / group

Discuss for 10 minutes on What is OD? Include in your discussion:

1. What does it include?

2. How are you doing it?

3. Do you have dedicated resources (team or individual) assigned to it?

4. Where and how is it being initiated?

5. Who is the owner? 　6. Are your senior leadership aligned to it?

Representative report to big group 　

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What is OD? 　Organization Development is defined as: 　 A systematic methodology that companies use to develop their

organization structure and people based on their medium to long term business strategies (normally for periods of 5-10 years)

　 This includes the consideration of the companies’: 　

Business Strategic Priorities 　 Products 　 Target Markets 　 Customers 　 Sales Channels 　 Internal Management Capabilities 　 Market Availability of Talents 　 Etc….

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Why OD? 　Organization Development is critically important to companies. Given the abovementioned criterions, in order to succeed now and in the future, companies must: 　

Be able to determine what kind of structure they need and management practice to match to it 　

Clear about what do they currently have and what is needed to achieve the business strategies in the future, including: 　

How many? 　 What kind? 　 When? 　 Where? 　 As well the sources (i.e. internal or external) of these

required Talents11

Benefits of OD?Major benefits of OD are:

Clearly Understand our current and future HR needs which in turn enable companies to maximize their Human Resources capabilities

Minimize unnecessary wastage of man-power and enhance the efficiency of the HR $

Anticipates up coming excess and/or shortages of required Talents

Identify critical Gaps in Talent supply (both internally and externally) thereby establish strategic priorities to recruit, train, develop

More…..

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Top 100s Best Practices All Top 100s companies have an OD function and this is at

their WW HQs

Many of them are tied-in with MD (due to its close relationship)

Both centralized and de-centralized OD operations are commonly found i.e. TOP down from HQ and regionalized OD operations in say GRC (Greater China), Latin America, Eastern Europe, Indian and South ASIA, etc….

Recently, some of the Biggest Conglomerates re-structured their organizations and have their WW HQs relocated to ASIA e.g. GE in HK

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The China MarketMajority of the MNC China operations are performing an MD

function rather than “OD”

Mostly in response to HQs’ directions

Focus on “Current” issues / problems

Tied to Talent Management and/or Succession/Career Management

HR is lacking Capabilities due to inadequate business understanding, OD/MD function training, etc.

Loosely or no linkage to business strategies

Minimal and/or no Senior Management involvement and/or support

Etc….14

Organization Development

OD - Where does it start? What does it link to? Typical Process

Critical parts of ODOrganization Structure and Management PracticeWorkforce Planning (Job Families and Role Competencies)Talent Management (Career and Succession management) Training and Development – “filling the Gaps”

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OD – The Starting Point & LinkagesOrganization Mission / Vision / Values / Strategies

Leadership &Top Team Alignment

Organization Structure &

Processes

Job Evaluation

Grading / Leveling

Job Analysis/Role Clarification

(KRA / KPI)

EMPLOYEE ENGAGEMENT

HR Policy and Procedure & HRIS

HARDWARE

SOFTWARE

Career Ladder or Job Family

Training / Development

Performance Management

MD - Talent, Career &

Succession Planning

Reward

Workforce Planning

Organization Culture

Target Role Competencies

Individual & Role Competencies

matchRecruitment &

Selection

COMMUNICATION

Organization Development

Typical Process

1. Derive from the Business Medium or Long Term Strategies (typically 5-10year plans), decide on…

Organization Structure required, building on :—Business Functions, geographic location, customer

segmentations, etc…—Organization Desired Culture and Role Competencies

Work Processes – decision on what kind of work being perform where?

2. Overall Workforce Planning based on the above

3. Then Talent Management – review of what we have, do not have and define Training/Development needs

4. Then Recruit or Train and develop …….

5. 17

Organization Structure and

Management Practices

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Decision-making Process to develop an appropriate structure for your organization

1. Clarify strategic intent

2. Define work culture and management

practices

3. Determine your customer segments

4. Identify core business processes

5. Evaluate the basic options

6. Check with a decision criteria

7. 3 more questions to consider

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1. Clarify Strategic Intent

Strategic Objectives: Strategic Objectives: what are the key outcomes your

business must achieve in the marketplace? The strategic

objectives should define success for your business relative to

your customers, competitors, and stakeholders.

Critical Success Factors: Critical Success Factors: what are the key things the

business must “get right” internally in order to achieve its

strategic objectives? The critical success factors should

define the company’s core competence that must be built

from within to give it competitive advantage.

2. Define Desired Work Culture and Management Practices

Work Culture:

How is work being done?

Expectation of how our people should behave

How we will treat our business partners i.e. customers, suppliers, etc….

Management Practices:

Centralization vs De-centralization

Where decisions will be made i.e. what work being done where?

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From Values... To Culture

… are an integral feature of our mission statement, which has already been rolled out worldwide,

… form the link to the new Leadership Principles,

… form the basis for a strong common corporate and management culture,

… are therefore essential for our success.

Management PracticesCentralized vs de-centralized

Decision levels and points:—Set Direction and Policy—Organization and Planning —Implementation & Execution—Administration

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3. Determine Customer Segments

Typical options for market segmentation include:

Type of customer or business volume (individual

consumer; small, medium, large commercial customers)

Type of buying pattern (standard, customized, integrated)

Geographic location (city, region, country)

Sales channel (web-based, telephone, in-person)

Some combination of the above

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4. Identify Core Business Processes

Classic Business Process Design

Finance

Human Resources

Information Technology

Purchasing

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5. Evaluate the Basic Options

There are 6 basic design options for any business

FunctionalFunctional

ProductProduct

Market/customer segmentMarket/customer segment

MatrixMatrix

ProcessProcess

HybridHybrid

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basic design options

Typically Used:

Small organization

Simple product line

Stable markets and products

Efficiency focus

Advantages

Clear responsibility within functions

Technical specialists are managed within a function

Efficiencies of scale

Disadvantages:

Lack of accountability for profit/loss

Harder to support cross-functional problem solving and coordination

Harder to develop general management experience

Functional Structure Product StructureTypically Used:

Distinct products/services exist

Product line volume allows for efficiency of scale

Product technology distinct

Advantages

Clear responsibility for product line success

Resources are managed within a product line

Product expertise is developed

General management within a product line can be developed

Disadvantages:

Duplication of resources across product lines

Harder to coordinate marketing of multiple products to same customer

Difficult to obtain synergies(innovation, expertise, financial) across products

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basic design options

Typically Used:

Market/customer requirements vary greatly

Depth of knowledge of market segments critical

Volume exists within each market

Advantages

Market/customer knowledge and expertise can be developed

Products/services can be tailored to respond to market segment need

Easier to coordinate delivery of product/service to customer

Disadvantages:

Duplication of resources across market/customer lines

Harder to coordinate resource allocation across market segments

Difficult to obtain synergies (innovation, expertise, financial) across market segments

Market/Customer Segment Structure Matrix Structure

Typically Used:

Both technical expertise and market/customer expertise required

Integration across functions and markets is required

Large scope and scale across products and markets exists

Advantages

Integrates both technical expertise and market/customer expertise

Technical resources can be flexibly allocated to project teams to serve specific markets

Synergies can be realized across market segments

Disadvantages:

High degree of horizontal and vertical coordination and communication required

High degree of management talent required to resolve conflicting priorities

Clarity of accountabilities and career paths required to maintain employee satisfaction

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basic design options

Typically Used: Customer service priority Managerial capability is mature to work across

boundaries Employee competence is highly developed to work

across functions

Advantages Highly responsive to changing customer

requirements Employees focused on clear accountabilities to

meet customer requirements Cross-functional teams allow for broad employee

development Lean management

Disadvantages: High degree of horizontal and vertical coordination

and communication required May require high degree of investment in

information technology High degree of leadership and employee

competency required

Process Structure Hybrid Structure

Typically Used:

Large markets

Complex products

Growing customer base

Distinct business lines

Advantages

Structure flexibly designed based on product and market/customer requirements

Disadvantages:

Harder to create clarity of accountabilities for profit/loss

Harder for customers and employees to understand mission and vision of company

Requires high degree of management talent to integrate and coordinate resources

Difficult to create clear career paths

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6. Check with Decision Criteria

Supports strategic intent of the business

Supports the desired work culture

Reflects core business processes

Represents a logical grouping of functions and activities

Supports effective interface with customers and markets

Reasonable spans of control exist

Reporting lines and relationships are clear

Levels of authority are clear to support management control and decision making

Encourages effective employee communications

Resources are allocated efficiently

…

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7. More questions to answer

What level of decision making authority do you want delegated?

How broadly do you want to define job accountabilities?

What is the existing management capability within the organization?

Workforce Planning

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Strategic Workforce PlanningLong-term business

plan

Workforce required

to execute business plan

Workforce currently in place and available

in the market

Workforce Demand Workforce Supply

Source/AttractDevelopRetainEngage

Contract/Outsource

People processes and programs

3. Implement action plans to execute workforce strategy

4. Optimize programs to drive desired behavior

1. Project workforce requirements of the business plan

2. Identify gaps and optimize workforce mix

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Strategic Workforce Planning is a process owned and leveraged by a range of people within HR

It is critical to target the project against specific workforce issues!

How do I create a process and tools to determine the talent requirements of my business?

What is the demand, supply and cost of talent?

In what way do the assumptions impact the forecast?

As part of Total Rewards Strategy, what does our current and future workforce look like?

What will be the cost of the programs?

How do I design a transition strategy?

What are the best locations for certain types of jobs?

Have I maxed out in a certain market?

How do I convert the long-term plan into an operational plan that can be executed?

Lines of Business/HRBP

Rewards

Heads of Staffing/ Workforce Planning

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The questions that companies are asking and evolving in sophistication

Enduring Areas of Business Focus

GrowthHow do I quantify the number of people

I need?

Labor MixHow can I evaluate current state of types

of workforce being used

Geographic SourcingWhat does the current state of key

markets we operate in look like?

Tools and ProcessEnabling ongoing analysis and functions

HR CapabilityAttract, develop, engage and retain talent

Evolving “Next Practice”Business Focus

Demand PlanningBased on business drivers, how do

I forecast future talent needs?

Labor OptimizationHow do I drive towards the optimal mix of

full-time, part-time, contract or offshore labor?

Global SourcingWhat are the best locations to find

available cost at the right cost?

Connected ThinkingAnalyze, deliver, measure and quantify

across a range of areas

HR Business PartnerAssessment and development of systemic

solutions from a BU and enterprise perspective

*Sources: Towers Perrin best practices

Based on the questions from clients during 2006, significant upgrades have been made

to all areas of the SWP offer

Key Component

of SWP Client Issues What’s new?Workforce Scan “How does the workforce change in

terms of headcount, cost or new employees?”

Turnover analysis to compare prior-year and current-year workforce

External Labor Scan “What do the demographics of my workforce look like compared to the available market? Should we consider alternative sourcing strategies?”

Expanded U.S. data and functionality, including “Best Locations” analysis

New global country data Model templates for summarizing output

Workforce Projection Model

“What are the future staffing needs, demographics and cost of the workforce?”

Better connections to business planning, in particular for health care and energy companies

Projections of more data attributes, such as diversity

More robust scenario analysis, including contract labor vs. FTEs or maximum hiring capacity

Staffing Planning “What are the operational impacts of staffing? How many recruiters will I need? What is the impact of internal transfers?”

New standard integrated application for operational staffing reviews focused on 18-month to 2-year plan

Modeling of internal and external hires Recruiting resources and budget requirements

Major Updates

Major Updates

New Features

Brand New!

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1. Workforce Scan: Mining current state PLUS turnover trend data

New processes and online tool enable the loading of current data and prior year data to get automated reports on turnover segmented by Business unit Location Job type Pay grade Age Gender Pay Ethnicity Review of hiring, turnover and retirement

experience

Value to client Easy analysis and reports on turnover trend

data Given cost of turnover of 0.5 to 1.5 or more of

salary, analysis provides critical information

Turnover by Job Type

Major Updates

Major Updates

Turnover by Year of Service and Region

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2. External labor scan: U.S. For U.S., whole new upgraded

interface that enables Selecting multiple cities Viewing a range of statistics on

cost, quality of life, education, language skills

“Best locations” analysis that allow you to sort on headcount, cost, diversity or overall ranking

Value to client Am I tapped out in my current

geography? Is there a better place for

this kind of work? As I think about acquisition,

what are the local labor market issues?106146154

Phoenix-Mesa-Scottsdale, AZ MSA

AZ

139155160Charlotte-Gastonia-Concord, NC-SC MSA

NC

54175185Bridgeport-Stamford-Norwalk, CT MSA

CT

47184182Boston-Cambridge-Quincy, MA-NH MSA

MA

64148162Austin-Round Rock, TX MSA

TX

EASI Total Crime Index (US Avg=100; A=High)

Education Index

Culture IndexMSAState

106146154Phoenix-Mesa-Scottsdale, AZ MSA

AZ

139155160Charlotte-Gastonia-Concord, NC-SC MSA

NC

54175185Bridgeport-Stamford-Norwalk, CT MSA

CT

47184182Boston-Cambridge-Quincy, MA-NH MSA

MA

64148162Austin-Round Rock, TX MSA

TX

EASI Total Crime Index (US Avg=100; A=High)

Education Index

Culture IndexMSAState

Major Updates

Major Updates

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2. External labor scan: New model reports

New labor market maps that can be created by Tillinghast colleagues Use for key jobs like technology,

engineering, call center, nursing Can also be applied to internal data

to understand recruiting zones and opportunities for improvement

Multi-source data can be organized in model reports and charts to help compare locations in terms of being an “overall” market of choice vs. a great city for certain specific types of talent

New features

Overall Market of Choice High

Tech

Mark

et

of

ch

oic

e

Low

High

City 2

City 5

City 7

City 12

City 8

City 11City 4

City 1

City 10

City 9

City 6

City 3

1

2

3

4

5

1 2 3 4 5

New Features

New Features

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2. Global templates have also been created and new global data have been loaded into the tools

The online tool has data for Canada, U.K., France and Germany on high-level availability and ethnic diversity

More data to come (Japan and Netherlands are next for the developed countries)

Model reports help to summarize key output in decision framework

GCG contacts Emma Carter and Melissa Marvan can help to compile data for developing countries

AvailabilityLow High

Cost

Low

High

City 1: U.S.

City 2: U.S.

City 2: U.K.

City 3: U.K.

City 1: U.K.

City 1,: India

City 2: India

City 1: Philippines

New Features

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ExerciseYour client has just acquired a company that needs to

centralize operations to a number of cities for IT positions

Look at the current workforce and turnover patterns by age, gender and years of service

The initial choices are Austin, Boston, Chicago and Paris

What are the key pros and cons of each city?

What other data do you need beyond what is in the tool? Where will you get the data from?

What are the follow-up opportunities from this process?

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2007 2008 2009 2010 2011 2012

Med / Surg / Obs 4.6% 6.3% 0.1% 0.1% 0.0% 0.0%

Critical Care 4.6% 6.3% 0.1% 0.1% 0.0% 0.0%

Emergency 2.6% 4.6% 4.4% 3.9% 3.4% 3.4%

Perioperative 4.6% 6.3% 0.1% 0.1% 0.0% 0.0%

NICU 4.6% 6.3% 0.1% 0.1% 0.0% 0.0%

Outpatient 2.6% 4.6% 4.4% 3.9% 3.4% 3.4%

Obstetrics/ Women's Health 4.6% 6.3% 0.1% 0.1% 0.0% 0.0%

Skilled Rehabilitation 7.0% 8.4% 1.7% 1.7% 0.3% 0.3%

Psychiatric 2.6% 4.6% 4.4% 3.9% 3.4% 3.4%

Other RN 2.6% 4.6% 4.4% 3.9% 3.4% 3.4%

Pediatrics* 4.6% 6.3% 0.1% 0.1% 0.0% 0.0%

3. Translate business plan demand to workforce requirements

In health care and energy, more case work and tools for the translation of business plan to headcount requirements

Standard interview guides for assumptions

Ability to model business drivers in online tools

Value to client Based on changes in business

volumes, what is the future staffing needed?

How can I get business plan input on the future direction?

Job Family BRC Farmington M id-Continent Int'l/UK Lower 48E Corp/Ft W orth

EngineersGross new wells drilled 0.67 0.67 0.67 0.67 0.67 0.67Gross operated wells 1/150 1/150 1/150 1/150 1/150 1/150Capital expenditure -- -- -- -- -- --Staff growth -- -- -- -- -- --Sponsor Vega/Craddock Vega/Craddock Vega/Craddock Vega/Frasier Vega/Craddock

Gross new wells drilled 0.50 0.50 0.50 0.50 0.50 0.50Gross operated wells 2/100 -- -- -- -- --Capital expenditure -- -- -- -- -- --Staff growth -- -- -- -- -- --Sponsor Vega/Frasier Vega/Frasier Vega/Frasier Vega/Frasier Vega/Frasier

Gross new wells drilled 2/100 2/100 2/100 2/100 -- --Gross operated wells -- -- -- -- --Capital expenditure -- -- -- -- --Staff growth -- -- -- -- --Sponsor Parent/Hawkins Parent/Hawkins Parent/Hawkins -- --

Gross new wells drilled 1/100 0.1 0.1 0.1 -- --Gross operated wells -- -- -- -- -- --Capital expenditure 1/$20MM -- -- -- -- --Staff growth -- -- -- -- -- --Sponsor Parent/Hawkins Phelps Berrell Ferran -- --

Gross new wells drilled 1/11 1/11 1/11 1/11 -- --Gross operated wells -- -- -- -- -- --Capital expenditure -- -- -- -- -- --Staff growth -- -- -- -- -- --Sponsor Parent/Hrap Phelps Berrell Ferran -- --

My outpatient caregiver needs are growing faster than inpatient needs I can align business with staffing volume drivers

New Features

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3. Workforce projection model: Understand the future requirements

New scenario capability to look at Short service, mid-career and

retirements separately FTEs vs. contract Maximum hiring capacity Vacancies

Modifying hiring capacity to reflect Pipeline of new graduate talent Ability to absorb and train new employees

Value to client Understanding of future headcount, cost,

demographics and sources of loss of talent Enables aligned strategies

— Recruiting partnerships— Onboarding— Phased retirement— Rewards work

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4. “Operationalizing” the forecast:Staffing Planning Tool

Focuses on 18- to 24-month plan Enables analysis of more operational

aspects of staffing including Internal vs. external hires Time to fill Time to train Number of recruiters required Expected cost of hiring Monitoring of monthly projected versus

actual staffing requirements Diversity targets

Integrated with the SWP suite of tools Demos available online

Value to client Creates an operational view of long-range

planning for the staffing group Provides key ongoing measurement

and targets

Brand New!

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Market updatesTowers Perrin is focusing in SWP worldwide but fail to deliver in China and Asia markets due to inability of local consultants and lack of data. (This is true for all

other major consulting firms as well)

Mercer appears to be directly positioning itself to compete against TPs SWP offering Workforce Forecaster — brand new Web-based tool for workforce

planning that analyzes current workforce and prior trends and models future workforce; does not analyze external labor

These tools appear to be still fragmented internally; however, Mercer appears to be offering solutions, not just strategies for companies to follow

Wyatt: Has workforce planning but no major move or updates for 2007; can be a strong competitor in the marketplace

CLC: Has workforce planning and metrics in its spin-off called Inform (used to be CLC metrics)

Wyatt

CLC/Inform

Mercer

Case Studies1. Guangzhou MTR

2. HP (Asean)

3. Pepsi-cola (China)

4. EDS (China) – a case of failure

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Career Ladder / Job Family

50

What is Career Management?Career Map

Career Ladder

+Functional

Competencies

Talent Applications

Rewards & Job Evaluation

Learning and Development

Performance Management

Career Pathing& Planning

Recruitmentand Selection

The career ladders describe the

progression of organization-wide

competencies-- Talent requirements and

expectations at each level are clearly stated

Functional competencies clarify technical

requirements and responsibilities unique to

a function

The organization-wide competencies define expectations that are common for all jobs across the company. Functional competencies define the unique set of competencies for employees in a specific function. The two sets of competencies are complimentary and are not intended to overlap.

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Career Ladder Framework

Business Support Services

Production and

Operations

IndividualContributor

Sales & AccountManagement

Supervisory/Management

Individual Contributors

Managers

SupportSupport

Lead

Senior

Entry

Intermediate

Senior Expert

Expert

Entry

Associate

Specialist

Career

ProfessionalProfessional

Lead

Advanced

Entry

Intermediate

TeamLeader

Expert

Associate

Career

Manager

Senior Manager

Entry

GroupManager

Manager

Supervisor

ConsultingManager

Senior Manager

Sample

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Learning

Applying

Applying/Guiding

Guiding

Guiding/Shaping

Guiding

Learning

Applying

Individual Career Ladder

Managerial Ladder

M1

M2

M3

M4

P2

P1

P5

P4

P3

P6

Career management Becomes Transparent

Competency Level Characteristics

Shaping — Leading Through Vision

Guiding — Contributing Through Others

Applying — Contributing Independently

Learning — Helping and Learning

Sample

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Career Management - “Managerial” and “Individual Contributor” Career Paths...

Both these career paths share some common characteristics: Positions in each career path are respectively equivalent Individuals in each career path may require a combination of “people” and technical skills,

but one area is emphasized more than the other The number of incumbents needed by the organization decreases at higher levels

Generally, Managerial career paths include roles where individuals Manage people (e.g., hiring, performance management, compensation, development) Implement processes to achieve strategic goals and objectives Maintain responsibility for operational aspects of the organization (e.g., budgeting, planning,

profitability, resource allocation) Emphasize the acquisition and development of management skills while maintaining a broad

technical skill foundation

Individual Contributor paths include roles where individuals Focus on contributing to the organization primarily on an individual basis through the

application of in-depth technical expertise May include some emphasis on providing informal guidance and performance feedback Allows for the majority of time to be spent on performing and providing advice on technical

activities/issues

Role Competencies

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Competencies

… were developed on the basis of our values, and help us to live our values in our everyday work,

… describe how managers are expected to behave,

… support and guide managers in their leadership tasks,

… provide a yardstick to measure development and leadership performance.

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Competencies Competency are critical for:

Aligning how employees deliver results with the organization strategy and values

Establishing common criteria for hiring, training, measuring and rewarding employees

Communicating a consistent language about performance

Emphasizing how someone performs in addition to what they achieve

Identifying gaps between current capabilities and future requirements

Focusing training and development efforts on areas with greatest need and/or impact

Encouraging development.

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Competencies

1. General/CoreCompetencies

2. Functional/TechnicalCompetencies

Examples: Leadership Teamwork Customer Orientation

Examples: Leadership Teamwork Customer Orientation

Examples: Finance and accounting Risk management Auditing Labor regulations Problem Solving

Examples: Finance and accounting Risk management Auditing Labor regulations Problem Solving

Organizational CompetenciesOrganizational Competencies Functional/Technical CompetenciesFunctional/Technical Competencies

Critical to realizing organizational business goals

Generally common across the organization and apply to all employees

Often reflect the organization’s Core Values and tie to its culture

Critical to realizing organizational business goals

Generally common across the organization and apply to all employees

Often reflect the organization’s Core Values and tie to its culture

Necessary for success in a particular function, role, or job

Not applicable to all employees but specific to a particular domain (eg. sales, finance, HR,…)

Usually involve knowledge in a technical, professional or process area

Necessary for success in a particular function, role, or job

Not applicable to all employees but specific to a particular domain (eg. sales, finance, HR,…)

Usually involve knowledge in a technical, professional or process area

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Competencies

Negotiation SkillsEffectively persuades customers and colleagues in order to reach mutually beneficial agreements and influence important outcomes

Foundational Intermediate Advanced Strategic

Negotiates simple, short-term offers and handles minor objections; seeks assistance with more difficult negotiations

Arms self with information prior to negotiating with a customer; learns to ask the right questions to understand the other party’s position

Learns to ask for a commitment and persists despite initial rejection

Negotiates standard contracts with confidence; builds rapport and trust with the negotiating party, effectively predicts and responds to objections and knows when to ask for a commitment

Creates a common ground by recognizing areas of agreement and focusing on areas of disagreement in a negotiation

Captures the full value of an offer, accounting for all factors in a negotiation (e.g., brand, freight, consulting services)

Negotiates complex contracts (multi-year, high dollar volume) maximizing the full value for all parts of the offering; optimizes long-term value by recognizing that negotiations are an on-going event

Adapts to different negotiation styles (cultural and behavioral) within an organization and resolves issues without negative impact on the relationship

Keeps all stakeholders informed and in alignment on difficult or complex negotiation terms

Negotiates global or multi-regional arrangements; develops negotiation strategies based on an in-depth understanding of the deal

Understands how to approach negotiations at different tiers in the value chain

Positions self and company for the future; knows the key influencers in an organization and “pre-sells” an arrangement

Competency

Level of Contribution

ILLUSTRATIVE

Generic Definition

behavioral Anchors

Example of a scaled competency

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Competencies

Support

Professional

Individual Contributor Roles Management Roles

Business Support Services

Production and

Operations

B1

B2

B3

B4

O1

O2

O3

O4

Professional/ Technical

Sales

P1 S1

P6

P5

P4

P3

P2

S4

S3

S2

Supervisory/Management

M1

M5

M2

M3

M4

E1

E2

E3

Executive

Defined to meet unique

client requirements

Management

Career Ladder Career

Level

Linking competencies to career framework

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Competencies To be Effective, the Competency Model Needs to be Integrated into Broader HR and Talent Management Programs

Compensation and

Rewards

Selection (internal and

external)

PerformanceManagement

Career Management

Training

Development

Succession Planning

Recruitment

Competency Model

Talent Management

The China Market Environment

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Employees will be a source of competitive advantage

1980s 2000s1990s

What does the employee cost the

organization?(Focus on reducing

total labor costs)

What is the employee worth to the organization?

(Focus on maximizing human

capital ROI)

What is the organization worth to the employee?

(Focus on engagement —

unleashing discretionary effort)

Our Most ImportantInvestors

Our Greatest Asset

Our Highest Cost

Real competitive advantage…

我们最高的成本

我们最高的资产

我们最重要的投资

63

Younger Workers in China are looking for Career Opportunities…

Attraction DriversChina

OverallAges 18

to 29Ages 30

to 44Ages 45

to 54

Learning and development opportunities 1 1 2 8

Career advancement opportunities 2 2 3 5

Competitive base pay 3 4 1 2

Competitive benefits 4 3 4 10

Vacation/paid time off N 5 5 5 3

Reputation of the organization as a good employer

6 6 6 —

Long-term incentives 7 10 7 —

Innovative environment N 8 8 9 9

Challenging work 9 7 — —

Strong senior leadership 10 — 8 4

Organization’s mission and vision N — 9 — —

Competitive retirement benefits — — 10 1

High level of autonomy — — — 6

Reasonable workload N — — — 7

Source: Towers Perrin 2007 Workforce Study — China.

* Insufficient base size to run driver analysis for age 55 or older group.

Top drivers of attraction by age group*

64

The “Talent War” is on-going……Non-availability of Leadership in China

Among all Asian countries, China has the highest shortage of local Leadership:

Companies reporting suffering from shortage of local leadership:

China - 50%

Malaysia - 30%

Australia - 23%

Indonesia - 19%

Singapore - 15%

Philippines - 15%

Thailand - 13%

Taiwan- 12%

Hong Kong - 10%

Korea - 7%

Sources: Talent surveys by Conference Board, Hewitt, Wyatt, Mercer during 2003 - 2006

65

Shortages of Local Talents in China

Multiple studies during the last 5 years indicated:

—Top Executives / General Management (50-60%)—Functional / Department Heads (50%)—Professionals (30-45%)

* This will continue……..

66

Turnover: a major concern & issue for

all

Depending on industry and location:

Turnover for Senior Management and Functional/Technical Experts (20-35%)

Professional (15-25%)

Front-line workings (50-60%)

Young Graduates, Management Trainees (40-60%)

67

Evolution in Talent Management

In China Managing Talent is A Core Concept For HR:

Talent is being recognized as a key area of HR practice

Chinese & Multinational companies have moderate confidence in the ability of their HR to manage talent and support line managers

There is plenty of scope for HR to improve its own skills so as to further the talent management agenda

68

A Snapshot Of The China Talent Management Environment

Significant progress has been made in China in establishing talent management systems

Strong interest by senior leaders

Talent management viewed to be an important issue in China

HR is confident in approaches to and effectiveness of talent management

Major gaps in talent managementRetentionLeadershipMobility

69

In China - Senior Management consider Talent Management as Critical

Importance of Managing Talent HK Asia China

70

Top challenges in talent management

Current Future

Mainland China

1. Forecasting talent needs, gaps & surpluses

2. Developing existing talent

3. Attracting the right leadership talent

4. Attracting the key contributor

5. Retaining the right key contributor

1. Retaining the right key contributor

2. Attracting the right leadership talent

3. Forecasting talent needs, gaps & surpluses

4. Ensuring a diverse talent pool

5. Deploying existing talent

Talent Management

What is it? Why is important? Who/what is Talent? What to measure? How to assess? How to manage them?

72

Talent Management: What is it?

73

Moderate-complexity jobs 32%High-complexity jobs 48%

Sales jobs up to 120%

0% 100%

50%

-1 S.D. +1 S.D.Represents

top 16%

Productivity value of one standard deviation

Source: Journal of Applied Psychology, 75 (1990): 28-42

The productivity differential between high and average performers can be significant

Superior performers in white-collar jobs deliver 32% to 48% more value-added discretionary performance than average performers

74

Who is Talent – different perspectives

Employee Groups Considered “Talent”

HK Asia China

75

What / Who is Talent?Employee Groups Considered “Talent”

76

Factors Used to Determine Inclusion in Talent Pools Importance of Factors

Measuring What?

77

Criteria for Talent Selection

Factors Used to Determine Inclusion in Talent Pools Importance of Factors

HK Asia China

领导者对组织的影响

员工敬业度

组织绩效

行为和胜任力

功能的技术的商业的 胜任力

性格 性格 **

决策风格 决策风格 **

能量水平 能量水平 **

价值观价值观

特性 特性 **

动机动机

技能知识

经验

个人潜能IQ,EQ,AQ,LQ

其他人看到的领导风格 影响

可 改

变 性

容易

困难

可习得的

内在动力

智力、情绪智力与逆境商关注行为中最基本的元素 胜任力是建立在智力、情绪智力和逆境商的基础之上的 好消息：我们能够改变这些行为

冰山模型 by Dr. David McClelland

工作环境

人才测评模型 心理学界研究已发现：决定个人成功的关键要素是其潜能、动机、性格特质和价值观 过去十年里不同 HR 顾问公司的很多调研显示：组合测评能最大效度地提高招聘选才的成功机会 尚贤进邦经过历年的研发，成功开发出基于潜能模型的组合式测评的人才测评模型

SCS - 社会能力测试

SJTP- 情境测试

SMS - 社会动机测试

PDP - 特质动力系统PVI - 价值观测验AC – 评价中心

潜能与能力倾向— 智商 IQ

— 情商 EQ— 逆境商 AQ

— 领导潜能 LQ— 心理资本 PC

人生哲学与价值观性格特质 — 性格

— 决策风格 — 工作方式 — 能量水平

社会动机— 成就动机— 亲和动机— 影响动机— 权力动机

做做

能能做做

什什

么么愿愿意意

做做什什

么么适适

合合

做做什什

么么

怎怎样样

（人

，（

人，事事

心理资本

人生哲学

动机

性格特质

价值观

潜能

））

81

How to Assess Talents?

Interviewing: are we trained? (BEI Targeted Selection)

Do we have clear expectations including managerial, functional and technical competencies?

Reference to the desired competencies, do we have the tools and methodologies to assess them? Are we trained on these? (Competency Models and 360 rating systems)

Other additional information we need to know about the Talents? ( individual characteristics, traits, work energy, psychological capital i.e. IQ,EQ,AQ, LQ ;motives, personal values & life philosophies,

82

Assessing Talents:Are we equipped ?

83

Planned Talent Development Practices

How to Manage Talents?

Best in Class Practices

85

What are best in class companies doing…?

Ensure senior leadership

alignment, talent pipeline and

communication

Enhance learning and

career development framework

Improve front-line manager

effectiveness

Align total rewards

strategy

Refocus organization

communications

More visible ownership of talent agenda

Clearer articulation of mission, vision and growth strategy

More rigorous succession planning process

Earlier identification, deployment and management of high potentials

Review of core and functional competencies

Explore career ladders to clarify paths and calibrate rewards

Revisit learning/ development purpose, process and resources

Ensure better goal-setting and informal recognition, and richer performance assessments

Equip to engage in more productive career development discussions

Focus on “Engaging team management” — better involvement, communication and collaboration

Optimize investments against key attraction, retention and engagement drivers

Adopt segmented strategy to address key talent pools (e.g., technical, sales, future leaders)

Emphasis on internalizing the brand/value proposition, focusing on customers

More compelling communication of vision and strategy

86

Overview: Talent Management Framework

Build board/senior management engagement; communication planning

Develop tools

One definition (e.g. high potential) or two (e.g. high potential and technical experts)

Review stretch qualities vs competencies

Define stretch and ambition factors

Define expert criteria if required

Develop talent review process

PrinciplesDetailed process stepsFit with business planning

and performance management processes

Define scope/corporate interest group

Agree responsibilities

Review talent requirements

Create definition(s) of talent

incorporating competencies

Manager assessmentTalent review sessionReporting Database

Build skills

Build board and senior management capability

Train HR facilitators

IllustrativeIllustrative

• Talent reviews & strategic staffing

• Performance management

• Development

• Rewards

Talent survey – ensuring alignment

Critical:

Determine what and how to assess Talents’ “Ability and Potentials”

Steps for Successful Talent Management Implementation

1. A Business Case – gaining line and senior management ownership

2. Clarify Objective and Expected Results – what and why Talent Management?

3. Communicate throughout the organization

4. The Talent/Succession Management Framework: Definition – What is Talent? Who is Talent? Establishing the Criteria – competencies, behaviors, abilities and potentials Establish standard review processes:

• Setting the criteria and

• Define methodologies for assessment / selection

• Finding gaps Finding out what Talent wants – match and align with organization needs Development – structured programs and tools Build internal skills to Manage Talents

5. A holistic approach – ensuring linkage to HR systems e.g. Career Ladder, Competencies , Training, Reward, Performance Management, etc.

87

Succession Management

A connection to Talent Management

89

Succession Management

The question is do you have the “Back-ups” or “Bench” for your critical roles

In each of your critical roles, you should have at least 2 “back-ups”

Do you know your “People Risk”?

Succession Management is more than just putting names in boxes

90

Succession ManagementWhy is it important?

It ensures no management gaps for the organization

No or less interruption to business operations

Employees understand their career paths and development

A positive Employer branding

91

Succession Planning

Critical Roles

Within 12 months

13 to 24 months

25 to 36 months

More than 3 years

HR Director ABC ABD

VP Commercial

XYZ

VP Corporate & Legal Affairs

DDC

VP Finance DFG

Sales Director

REG

Sample

People “Risk” ManagementName Position Time in

Position , Company

Performance for last 2 years

Potential for next level

Career Aspiration / Development Plan Discussion

Risk Level

ABC Fin Mgr 2/5 1,2 Yes, 1 Yes, 3 months H/M

DEF F&B Mgr 3/8 2,2 Yes, 1 Yes, 6 months M/L

GHI Housekeeping MGr

1/7 3,2 No no L

MNO GR/PR Mgr

2/4 3,3 TBO No M/L

PQS HR Mgr 1/5 2,3 Yes,2 Yes, 4 months M

XYZ Sales Mgr

1/2 1,1 Yes, 1 to 2 Yes, 2 months M/H

92

Sample

93

Exercise

Individually, take 5-10 minutes to think about your own Management Team:

Part one:Do you have “Back-ups” for these critical roles?How “Ready” are your bench?

Part Two:What are the “Risk Levels” for these critical talents?What needed or can be done to accelerate them?

Leadership and Management Development

Focus on the Intrinsic i.e. the “Drivers”

Primary Skill - Coaching

Complement with Function / Technical Skills

Prepare ahead of time

Uphold accountability

Tie to Performance and Reward

94

What do you see?What do you see?

95

Leader’s Impact on Organization

EmployeeEngagement

Improved Business

Performance

Exhibited as behaviors & competencies

Functional Technical Business

Competencies

Character *Character *

Decision Style *Decision Style *

Energy level *Energy level *

ValuesValues

Traits *Traits *

MotivesMotives

Skills

Knowledge

Experience

Psych Capital

IQ

EQ

AQ

LQ

View by others as Leadership

Styles Work Environment

Impact

Individual Leader’s

Abi

lity

to c

hang

e

Eas

y D

iffic

ult

Can be acquired

Intrinsic

* Tested by PDP

Source: Ice-berg concept by Dr. David McClelland

人才测评模型 心理学界研究已发现：决定个人成功的关键要素是其潜能、动机、性格特质和价值观 过去十年里不同 HR 顾问公司的很多调研显示：组合测评能最大效度地提高招聘选才的成功机会 尚贤进邦经过历年的研发，成功开发出基于潜能模型的组合式测评的人才测评模型

SCS - 社会能力测试

SJTP- 情境测试

SMS - 社会动机测试

PDP - 特质动力系统PVI - 价值观测验AC – 评价中心

潜能与能力倾向— 智商 IQ

— 情商 EQ— 逆境商 AQ

— 领导潜能 LQ

人生哲学与

价值观

性格特质 — 性格

— 决策风格 — 工作方式 — 能量水平

社会动机— 成就动机— 亲和动机— 影响动机— 权力动机

做做

能能做做

什什

么么愿愿

意意做做

什什

么么适适

合合

做做什什

么么

怎怎样样

（人

，（

人，事事

心理资本

人生哲学

动机

性格特质

价值观

潜能

））

Self Awareness – The Wisdom of Leaders

Understanding Others – The Route to Success

Successful Management

Self Others

Aw

are

ness

Act

ions

• Confidence about your own expertise

• Awareness about your limitations

• Being aware of your positive and negative biases

• Really listening to people who have other experience, expertise and background

• Understanding others’ perspective and the reasons for the ongoing behavior of others

• Controlling your own behaviors especially when you are challenged

• Being open to new ideas• Riding with ambiguity

• Expressing positive expectations

• Establishing relationships and networks

Successful Management –Self Awareness & Understand Others

SelfSelfAwarenessAwareness

SelfSelfManagementManagement

SocialSocialAwarenessAwareness

SocialSocialSkillsSkills

Positive Positive Impact on Impact on

PeoplePeople

人才发展是长期的投入

制定一项全面的培养计划并非易事。许多公司文化过分沉迷于短期项目，无法忍受把资金投入到不能马上见效的新项目上。但是，视野最重要。大部分《财富》最具领导力的公司都生存了很长时间。那些存在时间不长的公司，比如 Infosys （第 24 位），表现出了很强的可以长久持续的迹象。它们的管理者都知道，领导力培养是一种长期比赛。迪尔的麦克纳利说，“我们无法不这么做。我们有 172 年历史，我们不仅着眼于下一年，还要着眼于今后几十年。”

--- 《怎样打造伟大的领导人》

www.fortunechina.com    2010 年 02 月 04 日

创造辅导文化是值得的70% 的人力资源专业人士认为，教练比传统的人才发展方法作用更大。

教练的回报 6 倍于其他培训和发展投入的资源。

教练辅导能改善跟其他人的关系 :

下属： 77%

老板 ： 71%

教练辅导的结果可提高：生产率： 53%

生产质量： 48%

增加了企业优势 ： 48% 。

*1

*2

同事 ： 63%

客户： 37%

*2

*3

资料来源：*1 ，《周日泰晤士报》 20, 2002*2 ，《财富杂志 》 2.19, 2001, 143 卷第 4册*3 ， www.manchesterus.com

员工与职业导师的收益分析

员工收益：绩效提升 : +35%

忠诚度 : +6%

更好地处理人际关系 : +13%

增加自信 : +13%

提升管理与技术能力： +13%

加强自我认知 : +9%

学习解决问题方法 : +9%

掌握工作的方法 : +9%

理解自己的组织 : +5%

-- 数据源于

职业导师收益 ：为员工的进步感到骄傲 : +16%

从年轻人视角看问题 : +10%

有效辅导受到认可 : +6%

成为好的职业导师，是帮助他人

的心理需要

导师制对绩效的影响

研究表明：导师的四项功能中自我意识启发和角色规范对于员工的任务绩效有显著的正向影响；自我意识启发心理支持、职业发展和角色规范四项功能对于员工的情境绩效都存在着显著的正向影响。

自我意识启发

自我意识启发

心理支持心理支持

职业发展职业发展

任务绩效任务绩效

情境绩效情境绩效

角色规范角色规范

0.88

0.67

0.49

0.67

0.4

3

0.37

自我意识启发

自我意识启发

心理支持

职业发展

工作满意度

离职倾向

0.36

0.24

-0.1

80.1

9

0.28-0.27

研究表明 : 导师的功能中，自我意识启发、心理支持和职业发展都对工作满意度具有正向的影响作用；而心理支持和职业发展对离职倾向具有负向的影响；

导师制对工作满意度的影响

基层岗位 -内部导师

中层岗位 - 内部导师

中高层岗位 - 内部培养 + 外部教练

高层岗位 - 外部教练

职业导师制发展框架

多赢 -职业导师制的好处

职业导师员工

企业1. 有利于光大银行文化传承；2. 有利于企业人才保留；3. 有利于后备人才培养4. 有利于知识资产转化5. 有利于员工胜任工作6. 有利于客户资源公有化

1. 更快很好的适应环境2. 感受光大的组织文化3. 融入团队，增加自信4. 掌握工作方法，提升

绩效5. 更好地处理人际关系6. 加强自我认知7. 学习解决问题方法

1. 学会为人师表的方法2. 提升影响力与领导力3. 提升自己认知能力4. 教学相长5. 为将来职业生涯发展打

下基础

Summary and ConclusionA few questions:

Who is the owner?

Do you have Senior Management buy-in, involvement, support , etc….

Are you equipped?

What can and should you do in China? IS Talent Management enough?

107

CONTACT US

Address ： Room408-1,Jin Feng He Building, 8Xin Jie Kou Wai

Stress,Beijing,100088,China

Tel ： 010-62020069

Fax ： 010-62020058

Beijing: 15012508919 （ Michael Chan ）

Shenzhen: 13602559869(Amy guo ）

Zhuhai: 13570609708 (Sabrina Hu)

首席顾问 陈国涛 Michael Chan

陈国涛先生曾是韬睿咨询（ Towers Perrin ）公司高级咨询专家。此前，他曾在美世（ William Mercer ）和合益（ HAY group ）的国际咨询公司内先后担任大中华区总监和总裁职务。

从事顾问之前，陈国涛先生在世界顶级跨国企业内部从事业务管理经验已经超过 25 年，其任职的业务领域包括人力资源管理、财务和运营、销售和市场推广以及业务发展等。

陈国涛先生是高级管理层咨询方面的专家，其主要咨询领域包括领导力评估和发展、招聘及人员选拔、高管人员团队培训、变革管理、和组织设计及架构。同时他在处理以薪酬设计为基础的项目中也有非常丰富的经验。

陈国涛先生曾获美国华盛顿大学会计学学士学位和美国西雅图大学工商管理硕士学位。