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Despite recent softening in Asia's talent markets, 8 in 10 Asia HR executives cite that HR in Asia has become significantly harder across the past three years. As technological innovations accelerate and historic boundaries between markets and industries erode, product and talent markets—and the organizations poised to capitalize on them—are moving faster and becoming more complex than ever. Asia's new work environment requires regional HR to extend its impact through enterprise-centric framing of Asia HR's role.
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CEB Asia HR Leadership Council
Transforming Asia HR’s Enterprise Impact
Marcus WestlingDirect: +65 6645 4248 E-mail: [email protected]
© 2014 CEB. All rights reserved. CHREB8407114SYN
Human Resources
Corporate Integrity
Finance and Strategy
Information Technology
Sales, Marketing, and Communications
CEB Corporate Leadership Council
CEB Recruiting Leadership Council
CEB Benefits Leadership Council
CEB Learning & Development Leadership Council
■ 30 Years of Experience
■ 110+ Countries
■ 10,000+ Participating
Organizations
■ 300,000 Business
Professionals
■ 87% of the Fortune 500
■ 80% of the FTSE
■ 62% of the Dow Jones
Asian Titans
A DIVISION OF CEBWhat the Best Companies Do®
CEB Asia HR Leadership Council
CEB Compensation Leadership Council
2
© 2014 CEB. All rights reserved. CHREB8407114SYN
Monthly Webinars
■ Asia Friendly times
■ Unlimited participation
CEB Asia HR
Leadership Council
Executive Roundtables
■ Limited to Regional and Country Heads of HR
■ Small groups for better discussions
Dedicated Account Team
■ Located in Singapore
■ Guide you to relevant resources
Program Website
■ Unlimited users
■ Unlimited downloads
Research Team
■ Research interviews
■ Research walkthroughs
Executive Advisor
■ Thought partner
■ Team presentations
MEMBERSHIP FEATURES
A Variety of Methods to Consume the Research and Insights
3
© 2014 CEB. All rights reserved. CHREB8407114SYN
NOT GETTING ANY EASIER IN ASIA
Declining Business Sentiment in AsiaCEB Asia Business Sentiment Index
Costs and Competitive Intensity Rising in AsiaAsia Business Executives’ Expectations
Asia 78%
Global 65%
Higher Cost Pressure
Asia 71%
Global 47%
Higher Competition
Source: CEB analysis.
Stable
Q1 2013 Q2 2013
Source: CEB analysis.
n = 358.
n = 358.
4
© 2014 CEB. All rights reserved. CHREB8407114SYN
More Matrixed Organizations
Change in number of individuals involved in decisions in the past three years
More Dispersed Workforce
Change in amount of work with coworkers in another location in the past three years
More Information
Change in time spent finding and reviewing data and information in the past three years
TODAY’S REQUIREMENT: RAPIDLY CHANGING ORGANIZATIONS
High-Level Objectives Are Changing FrequentlyAmount of Change in Organizational Objectives in the Past Three Years
Types of Changes Defining the New-Work Environment
Few Companies Enjoy StabilityCompanies Experiencing Change in the Past Two Years
63% Increased
34% Stayed the Same
3% Decreased
Source: CEB 2013 High Performance Survey.
Source: CEB 2012 Communications Leadership Council Member Survey.
Source: CEB 2012 High Performance Survey.
n = 23,339.
n = 23,339.
n = 63.
Asia
50%
57%
76%
63%
66%
71%
3
2
1
0% 50% 100%
65% 19% 10%
Multiple Company Wide Changes Single Company-Wide Changes
No or Minor ChangesIsolated Changes in BU
Global
Asia
Global
Asia
Global
5
© 2014 CEB. All rights reserved. CHREB8407114SYN
0%
50%
100%
(MORE) BREAKTHROUGH GROWTH AND INNOVATION REQUIRED IN ASIA
Asia-Based Organizations Need Greater Performance Breakthrough Mean Performance Increase Needed to Hit Goals in 2013, Business Executives’ Estimate
Source: CEB 2012 Corporate Leadership Council High Performance Survey. Note: Talent Productivity component definitions:
Employee Engagement—The pride, energy, and optimism that employees bring to their work each day. Goal Alignment—The clarity of the link between the actions of individuals/teams/leaders and the goals of the company. Cultural Alignment —The extent to which the environment encourages employees to behave in a manner that supports corporate strategy. Organizational Agility—The ability of teams to quickly sense and respond to changes in their immediate environment.
Companies Need More Innovation
Source: CEB analysis.
Source: CEB analysis.
n = 71.
n = 92.
n = 2,046.
29%
ASIA
18%
EUROPE
19%
NORTH AMERICA
26%
33%
3%
71%54%
13%
2011 2015
Executives Asking Emerging Markets to Innovate Much More Share of R&D Project Types in Emerging Markets
75%The percentage of leaders citing innovation as a top area of concern.
Incremental Projects
Next Generation Projects
Breakthrough Projects
6
© 2014 CEB. All rights reserved. CHREB8407114SYN
Cost Reduction
“Our functional transformation project, while necessary, really just amounts to cost-efficiencies . We were given a target of 15% cost reduction and basically told to figure out how to make it work.”
Senior Director, China India-Based Technology Company
HR Operational Improvement
“We’ve just audited all of our L&D investment to find improvement areas . We’ve identified some great new training programs we can add to our L&D portfolio this year to improve development effectiveness.”
Vice President HR, SE Asia Energy Company
Structure Optimization
“We are changing our business model to compete with lower-cost competitors. In HR, we are restructuring for the third time in six years to improve alignment with the business .”
HR Director, India FMCG Company
Transformation Consultation
“Our head of HR was fired after engaging [an HR consultant] to help us with our HR transformation. It cost us millions . After three years of focus groups and analysis, they basically told us what we already knew . We had nothing to show for the investment.”
VP of HRInternational Financial Services
Company
HR Leadership Upgrade
“We decided to start over. We had struggled for so long to improve HR’s effectiveness in Asia, business leaders just got fed up. We brought in a whole new HR leadership team to turn things around. But honestly, two years later, not much has changed.”
Global Chief HR Officer Manufacturing Company
Technology Implementation
“We implemented [the latest HRIS] last year. We spent a fortune on it, and it’s
practically worthless. It literally must be the most expensive filing cabinet ever purchased. ”
SVP HR, North Asia Global Pharmaceuticals
Company
What do the best Asia HR functions do to help their firms compete in today’s dynamic product and talent markets?
?
LOOKING TO THE (NOT SO STRATEGIC) USUAL SUSPECTS
Common Attempts to Improve HR’s Impact Are Not Yielding Results Reflections on HR Transformation in Asia
Source: CEB analysis.
7
© 2014 CEB. All rights reserved. CHREB8407114SYN
Examples of Enterprise Transformation Activities
Creating, influencing, and facilitating:■ Medium and long-
term talent and business strategy
■ Business and HR innovation
■ Market entry and exit strategy
CEB’S ASIA HR ENTERPRISE IMPACT MODEL
Business Performance
■ Revenue
■ Profit Margin
■ Market Share
Future Business Confidence
■ Revenue
■ Profit Margin
■ Market Share
Performance at Talent Management
Asia HR’s effectiveness at performing traditional talent management activities and achieving traditional HR and talent outcomes
Performance at Enterprise Transformation
Asia HR’s effectiveness at shaping and facilitating successful new product, operating, and talent strategies and innovations
Enterprise Impact
Asia HR’s effectiveness at using its resources to influence and enable enterprise capabilities to achieve sustainable growth as markets evolve
+ =
Source: CEB analysis.
Examples of Talent Management Activities
Performing activities such as:
■ Recruiting
■ Engagement and retention
■ Training and development
■ Compensation and benefits
Note: Refer to p. 105 for more examples.
8
© 2014 CEB. All rights reserved. CHREB8407114SYN
18%
37%
45%
40%
32%
27%
10%
30%
50%
CHALLENGE 1: ASIA HR’S POSITIVE ILLUSIONS (OF IMPAC T)
Misalignment of the Role Asia HR Is PlayingOur Asia HR Function Is Most Accurately Described As...
Source: CEB 2013 Asia HR Impact Survey.
Enterprise EnablersHR Service ProvidersHR Administrators
HR Employees
Non-HR Employees
n = 3,448.
Percentage of
Organizations Achieving
Business Goals When...
36%
HR self-rates itself as enterprise enabler
57%57%
Non-HR employees rate HR as enterprise
enabler
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© 2014 CEB. All rights reserved. CHREB8407114SYN
CHALLENGE 2: PUTTING THE (OPERATIONAL) CART BEFORE THE (STRATEGIC) HORSE
Operational Excellence Does Not Earn Asia HR the Right to “Be Strategic” Enterprise Impact and Effectiveness at Enterprise Transformation and Talent Management
Enterprise Impact = 1.29X
Percentage of Organizations: 16%
Enterprise Impact = 1.00X
Percentage of Organizations: 43%
Enterprise Impact = 1.42X
Percentage of Organizations: 7%
Enterprise Impact = 1.18X
Percentage of Organizations: 34%
Best Path to Impact
Typical Path
High
HighLow
LowEffectiveness at Talent Management
Effe
ctiv
enes
s at
Ent
erpr
ise
Tra
nsfo
rmat
ion
Source: CEB 2013 Asia HR Impact Survey.10
© 2014 CEB. All rights reserved. CHREB8407114SYN
Enterprising and Performing
CHALLENGE 3: SUPPORTING AND REACTING, NOT ENTERPRIS ING
Asia HR Not “Being Strategic”Global and Regional HR Versus Global Non-HR Functions
Source: CEB 2013 SHL Occupational Personality Questionnaire.
Global HR More
Effective
Non-HR More Effective Globally
Regional HR More Effective
Leading and DecidingAdapting and Coping
Interacting and Presenting
Organizing and Executing
Creating and Conceptualizing
Cooperating and Supporting
Analyzing and Interpreting
Global n = 282,652 from 3,288 companies.
Non-HR More Effective Regionally
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© 2014 CEB. All rights reserved. CHREB8407114SYN
THREE BARRIERS TO TRANSFORMING ASIA HR’S ENTERPRISE IMPACT
Asia HR struggles to consistently create business v alue.
Asia HR is too focused on HR or financial outcomes.
Asia HR improvement efforts typically target incremental operational improvements or HR activities.
Asia HR staff apply an HR administrator or operators mind-set to their roles.
Root Causes
Key Questions
321How can Asia HR reposition itself to drive enterprise capabilities?
How can Asia HR’s services help accelerate organizational competitiveness and growth across time?
How can Asia HR executives reorient staff to enable their enterprises?
Source: CEB analysis.
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© 2014 CEB. All rights reserved. CHREB8407114SYN
TRANSFORMING ASIA HR’S ENTERPRISE IMPACT
Asia Root Cause 1Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities
Asia Root Cause 2Striving to Marginally Improve
Operational Effectiveness or Do More
Asia Root Cause 3Most Asia HR StaffCurrently Play an Operational or Administrative Role
Refocus Asia HR on Enterprise Impact
Redesign HR Services to Drive Enterprise Capabilities
Reposition Asia HR Talent as Enterprise Enablers
Center Asia HR Expectations and Accountability on Enterprise Impact
Reduce User Effort Drive Network Performance Through Individual Transformation
Prioritize Asia HR Investments Based on Enterprise Value
Design Regional HR Initiatives for Strategic Business Objectives
Anticipate and Shapethe Enterprise’s Future
Decorporatize (Select) HR Offerings
Engineer Productive Collaboration Within the HR Function
Repackage Services for Greater Local Uptake
13
© 2014 CEB. All rights reserved. CHREB8407114SYN
CEB’S HIGH-IMPACT ASIA HR CAPABILITY FRAMEWORK
Differentiating Characteristics of Next Generation Asia HR Functions
Asia HR Solutions Effortless, Enterprise-Focused,
and Embedded
Asia HR’sNetwork Performance
Advisory Capability
Future Focus and Innovation
Talent and Business Strategy Localization
HR-Enterprise Accountability
“The What” “The How”
14
© 2014 CEB. All rights reserved. CHREB8407114SYN
HOLD HR ACCOUNTABLE FOR ENTERPRISE IMPACT, NOT JUST TALENT OR FINANCIAL RESULTS
Talent Outcomes Financial Performance Strategic Enterprise Capabilities
Impact of Accountability on Asia HR’s Enterprise Impact
11%
18%
22%
Source: CEB 2013 Asia HR Impact Survey.n = 333.
Source: CEB 2013 Asia HR Impact Survey.n = 333.
59%
Talent Outcomes
22%
Financial Performance
37%
Strategic Enterprise Capabilities
Most Asia HR Functions Are Held Accountable Only for Talent OutcomesPercentage of Asia HR Functions Held Accountable, by Accountability Measures
15
© 2014 CEB. All rights reserved. CHREB8407114SYN
Country: South KoreaMETRICS WEIGHT JAN FEB MAR
Staff Service
Score
20%
Voluntary
Turnover
Management
Positions Filed
Internally
Manager
Training Hours
Wage Cost
Percent Versus
Total Revenue
Country: JapanMETRICS WEIGHT JAN FEB MAR
Staff Service
Score
20%
Voluntary
Turnover
Management
Positions Filed
Internally
Manager
Training Hours
Wage Cost
Percent Versus
Total Revenue
Country: IndiaMETRICS WEIGHT JAN FEB MAR
Staff Service
Score
20%
Voluntary
Turnover
Management
Positions Filed
Internally
Manager
Training Hours
Wage Cost
Percent Versus
Total Revenue
Country: ChinaMETRICS WEIGHT JAN FEB MAR
Staff Service
Score
20%
Voluntary
Turnover
Management
Positions Filed
Internally
Manager
Training Hours
Wage Cost
Percent Versus
Total Revenue
Region: AsiaMETRICS WEIGHT JAN FEB MAR
1. Staff Service
Score20%
2. Voluntary
Turnover25%
3. Management
Positions Filled
Internally
20%
4. Manager
Training Hours15%
5. Wage Cost
Percent Versus
Total Revenue
20%
EMBED ECOSYSTEM METRICS INTO (HR) FUNCTIONAL SCORECARDS
Marriott’s Asia HR ScorecardIllustrative
Note: The scorecard goals and weighting inform HR leaders’ MBOs and bonus calculation.
Strategic HR Scorecard Measures Traditional HR Scorecard Measures
Staff Service Defined: Staff Service is the overall guest satisfaction with Marriott’s service. Factors included in Staff Service are:
Arrival Experience Going the Extra Mile
Warmth and Hospitality Skills and Training
Responsiveness to Guest Needs
1Ecosystem Indicators Broaden HR’s Focus—Key ecosystem performance indicators focus HR on organizational impact.
2
9 8.5 7.5
20%
50%
10
55%
13%
55%
7.5
45%
16%
70%
5
40%
Unsatisfactory
Performing
Strong Performance
Key Performance
Flexible weighting allows local markets to tailor their scorecard for local business and talent conditions.
Example: Since voluntary turnover is low in S. Korea, less weight is placed on turnover and more on customer service— a strategic area of improvement in Korea.
Source: Marriott; CEB analysis.
16
© 2014 CEB. All rights reserved. CHREB8407114SYN
CO-DESIGN INTEGRATED FUNCTIONAL GOALS TO DRIVE ECOSYSTEM PERFORMANCE
Marriott Leaders Co-Design Functional Scorecards to Ensure Integrated ExecutionIllustrative
Function: Operations Month: March, 2013METRICS WEIGHT JAN FEB MAR
System and Process Execution
Analysis Accuracy
Staff Service Score
Management Positions Filled Internally
Budget Management
Function: Human Resources Month: March, 2013METRICS WEIGHT JAN FEB MAR
Staff Service Score
Voluntary Turnover
Management Positions Filled Internally
Manager Training Hours
Wage Cost Percent Versus Total Revenue
Function: Finance Month: March, 2013METRICS WEIGHT JAN FEB MAR
Profitability
Days Sales Outstanding
Cost per Vendor Invoice
Forecast and Analysis
Wage Cost Percent Versus Total Revenue
Function: Sales and Marketing Month: March, 2013METRICS WEIGHT JAN FEB MAR
Sales Volume
Sales Effectiveness
Profitability
Manager Training Hours
Customer Relationship Management
Regional Sales
Leader
RegionalBusinessLeader
Regional HR
Leader
Regional Finance Leader
Regional Operations
Leader
Marriott Asia’s “Goal Integration”
Session
1. Visualize and pressure test growth goals and strategies
2. Leaders present how their draft functional goals will drive growth strategy
3. Leaders discuss connections between and critique other functions’ goals
4. Leaders collectively finalize shared accountabilities to embed in each functional scorecard
Integrated Accountability ensures functions work collectively as one team.
Integrated Accountabilities
Source: Marriott; CEB analysis.
17
© 2014 CEB. All rights reserved. CHREB8407114SYN
TRANSFORMING ASIA HR’S ENTERPRISE IMPACT
Asia Root Cause 1Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities
Asia Root Cause 2Striving to Marginally Improve
Operational Effectiveness or Do More
Asia Root Cause 3Most Asia HR StaffCurrently Play an Operational or Administrative Role
Refocus Asia HR on Enterprise Impact
Redesign HR Services to Drive Enterprise Capabilities
Reposition Asia HR Talent as Enterprise Enablers
Center Asia HR Expectations and Accountability on Enterprise Impact
Reduce User Effort Drive Network Performance Through Individual Transformation
Prioritize Asia HR Investments Based on Enterprise Value
Design Regional HR Initiatives for Strategic Business Objectives
Anticipate and Shapethe Enterprise’s Future
Decorporatize (Select) HR Offerings
Engineer Productive Collaboration Within the HR Function
Repackage Services for Greater Local Uptake
18
© 2014 CEB. All rights reserved. CHREB8407114SYN
HR SERVICES NOT USER-FRIENDLY
Source: CEB 2013 Asia HR Impact Survey. Source: CEB 2013 Asia HR Impact Survey.
Few Employees Think HR Services Are Easy to UsePercentage of All Employees Agreeing or Strongly Agreeing
HR Overlooks User Effort in HR Service DesignPercentage of HR Staff Agreeing or Strongly Agreeing
32% Asia HR Makes
It Effortless to Receive Services
27% Our Function
Designs HR Services That Require
Minimum Effort for HR and Employees
n = 3,099. n = 333.
19
© 2014 CEB. All rights reserved. CHREB8407114SYN
DESIGN LOW EFFORT, PRODUCTIVITY-DRIVING SOLUTIONS
Mars’s Mobility-Enabled Recognition App
Accessible On-the-Go
Mobile app format makes it accessible anywhere and anytime, freeing employees to use it in the moment and on their own terms.
1 Simple User Interface
Simple app interface eliminates the need to login and navigate clunky, click-heavy intranet sites.
2
Source: Mars, Inc; CEB analysis.
20
© 2014 CEB. All rights reserved. CHREB8407114SYN
NOT APPLYING EVIDENCE AND EXPERTISE
Asia HR is Ineffective at Helping Business Beyond Traditional HR ActivitiesPercentage of Managers Rating Asia HR Effective At…
Hierarchical Management Impedes the Strategic Flow of Intelligence in Asia
Managing Traditional HR Activities
Helping in Product and Service Delivery
Formulating Business Vision and Strategy
Providing Business and Talent Intelligence
61%28% 23% 23%
Percentage of Respondents Disagreeing or Strongly Disagreeing
Percentage of Respondents Agreeing or Strongly Agreeing
15% My company
expects lower level/ younger employees to agree with and follow
management ideas without
question.
33% Asia HR
empowers me to creatively help the company innovate
and improve.
n = 2.308.
n = 3.448. n = 791.
Source: CEB 2013 Asia HR Impact Survey.
Source: CEB 2013 Asia HR Impact Survey. Source: CEB 2013 Asia HR Impact Survey.
21
© 2014 CEB. All rights reserved. CHREB8407114SYN
REDEPLOY EXISTING TALENT PRACTICES FOR ENTERPRISE—NOT JUST HR—IMPACT
The Costs and Benefits of Typical Mentoring Programs in Asia
Keys to Kimberly-Clark China’s Reverse Mentoring
TOP-DOWN TEACHING
Works in Asia’s hierarchical context
Fails to activate strategically critical insight latent in junior staff
HR OUTCOME FOCUSED
Can engage junior staff (but often feels forced)
Fails to meaningfully improveenterprise capabilities directly
Priorities and Purchasing Behaviors
Goal: Understand trends in younger generations’ values and purchasing habits■ What are younger employees working towards (getting married, buying a home,
starting a family)■ What are your main priorities in life? (career, family, friends, personal interests)■ How close with are you with your family? How does your families’ point of view
influence your choices?■ What are your favorite brands? Where do you like to shop & why?■ What influences your purchasing decisions?Communications and Technology Trends
Goal: Understanding how young talent get and share information, use technology
■ How do young professionals communicate?■ What trends do you see becoming more permanent (social media, social
networking etc.)
■ Gain understanding of a young employee’s communication style. How they
communicate opinions and ideas at work and at home?
Evolving Workforce Preferences
Goal: Understand how the younger generation thinks about their career
■ Why do young talent value careers and what are their motivations?■ What do young talent expect from the company they work for and how long will
they wait to get what they want before they leave.
Management Styles and Hierarchy
Goal: Understand how hierarchy impacts/influences younger employees4
3
2
1
Reverse Mentoring Program
Participant Contract
As a Mentor, I willFocus on the specific challenges that my mentee wants to understand more fully.
Share my relevant personal experiences in order to help my mentee get a clearer
picture of the cause and effect of these challenges.
Propose/brainstorm ideas and solutions to address the challenges we are discussing.
Suggest other challenges young professional’s face in the organization as appropriate.
Commit to and keep timely appointments.
Listen without being judgmental.
Respect confidentiality of matters discussed.
– My Mentee and I may mutually agree to share information publically at any time.
– Code of Conduct applies
As a Mentee, I will
Set a tone that encourages open dialogue
Mentee
Mentor
Rules of Engagement
Confidentiality and Openness
Listen, and probe without being judgmental
Brainstorm ideas and solutions to address the challenges
MenteeBe open to uncomfortable realities where applicable“Seek please, don’t tell” -avoid giving ‘my take’
MentorLead and drive the mentorship Focus on the objectiveShare personal experience and insight
Insight-Based Reversed Pairing facilitates rare staff-to-executive teaching.
1
Strategy-Focused Mentoring Guide centers exchanges on enterprise insight gaps rather than on individual career or HR agendas.
2
Collective Behavioral Commitment intentionallyneutralizes cultural barriers to upward insight flows in China.
3
Source: Kimberly-Clark China; CEB analysis.
22
© 2014 CEB. All rights reserved. CHREB8407114SYN
Priorities and Purchasing Behaviors
Goal: Understand trends in younger generations’ values and purchasing habits
■ What are younger employees working towards? (getting married, buying a home, starting a family)
■ What are your main priorities in life? (career, family, friends, personal interests)
■ How close are you to your family? How does your families’ point of view influence your choices?
■ What are your favorite brands? Where do you like to shop and why?
■ What influences your purchasing decisions?
Communications and Technology Trends
Goal: Understanding how young talent get and share information, use technology
■ How do young professionals communicate?
■ What trends do you see becoming more pertinent? (social media, social networking etc.)
■ Gain understanding of a young employee’s communication style. How they communicate opinions and ideas at
work and at home?
Evolving Workforce Preferences
Goal: Understand how the younger generation thinks about their career
■ How do young talent value their careers and what are their motivations?
■ What do young talent expect from the company they work for and how long will they wait to get what they want
before they leave?
Management Styles and Hierarchy
Goal: Understand how hierarchy impacts/influences younger employees
■ Communication gap between levels, generations and genders. Intent versus Interpretation
■ The reality of the masses. “High level” requests and demands often translate into a frenzy of additional work for
those who have to implement the request
4
3
2
1
STRUCTURE CONVERSATIONS FOR STRATEGIC —NOT JUST CAREER-FOCUSED—EXCHANGES
Kimberly-Clark’s Business-Focused Discussion GuideIllustrative
Standardized Guidelines Scalably Facilitate Targeted ExchangeKimberly-Clark provides mentors and mentees a guide to prepare for and have productive discussions.
Source: Kimberly-Clark China; CEB analysis. 23
© 2014 CEB. All rights reserved. CHREB8407114SYN
NEGATIVE PERCEPTION OF HR’S CONTRIBUTION IMPEDES HR SERVICE UTILIZATION
HR Is Viewed as a Compliance/Administrative Function, Not an Enabler of Competitive AdvantagePercentage of Managers Who Agree or Strongly Agree
62% Our HR Function in
Asia is More Focused on Compliance Than on Creating Competitive
Advantage
32% Managers Do
Not Use Most of the Services HR
Provides
19% Employees Do
Not Use Most of the Services HR
Provides
HR Services are Largely UnderutilizedPercentage of Managers/Employees Who Agree or Strongly Agree
Source: CEB 2013 Asia HR Impact Survey.
Source: CEB 2013 Asia HR Impact Survey.
Source: CEB 2013 Asia HR Impact Survey.
n = 2,308.
n = 2,308. n = 791
24
© 2014 CEB. All rights reserved. CHREB8407114SYN
UNLOCK THE POTENTIAL REGIONAL VALUE OF EXISTING—NOT INCREMENTAL—HR INVESTMENTS
Allergan’s Regional Root Cause Analysis Leads to Repurposing of Regional HR Solutions
Key Components of Allergan’s Regional Training Solution
Key Considerations to Analyze the Real Underlying Problem
1. What assumptions or biases present in the feedback?
2. Where does HR spend most of it’s time and investment currently?
3. What is unique about the Asia context that influences employees’ receptivity to HR solutions?
4. What is the 20% shift in our current approach that will lead to 80% impact?
Allergan’s Solution
Instead of investing in more training modules, unlock the value of existing training.
Situation: High Training Demand But Low Training Value Extraction
Asia Talent Review Feedback: Inexperienced managers in Asia need more training.
Engagement Survey Feedback: Managers/ employees wanted more training opportunities.
Personalize the Value and Ownership
1 Embed Context Flexibility for Local Relevance
3
Source: Allergan, Inc.; CEB analysis.
Certify Milestones to Motivate Learners in Asia
2
25
© 2014 CEB. All rights reserved. CHREB8407114SYN
TRANSFORMING ASIA HR’S ENTERPRISE IMPACT
Asia Root Cause 1Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities
Asia Root Cause 2Striving to Marginally Improve
Operational Effectiveness or Do More
Asia Root Cause 3Most Asia HR StaffCurrently Play an Operational or Administrative Role
Refocus Asia HR on Enterprise Impact
Redesign HR Services to Drive Enterprise Capabilities
Reposition Asia HR Talent as Enterprise Enablers
Center Asia HR Expectations and Accountability on Enterprise Impact
Reduce User Effort Drive Network Performance Through Individual Transformation
Prioritize Asia HR Investments Based on Enterprise Value
Design Regional HR Initiatives for Strategic Business Objectives
Anticipate and Shapethe Enterprise’s Future
Decorporatize (Select) HR Offerings
Engineer Productive Collaboration Within the HR Function
Repackage Services for Greater Local Uptake
26
© 2014 CEB. All rights reserved. CHREB8407114SYN
ASIA HR’S STAFF PERFORMANCE GAP REQUIRES PERSONAL MINDSET SHIFT
HR Function in Asia Significantly Younger and More InexperiencedAge Distribution of HR Staff
Asia HR Staff
23%
Asia
Source: CEB Asia and Global Labor Market Surveys.
Per
cent
age
of P
opul
atio
n
n = 12,834 (Global).
n = 3,073 (Asia).
40%Global HR Staff
CAREER
19
12
ORGANIZATION
10
7.3
Tenure in Years of HR Staff
Asia HR Professionals Lag Behind Their Global Peers on PerformancePercentage of HR Staff Exceeding Performance Expectations in Their Last Review, by Region
Rest of the World Asia
43%
66%
57%
34%
Under 40 Over 40
Note: “Asia” includes China, India, Japan, Singapore, South Korea, Indonesia, Malaysia, and Philippines. “Rest of the World” includes US, UK, Switzerland, Spain, South Africa, Russia, Mexico, Italy, Germany, France, Denmark, Finland, Sweden, Norway, Canada, Brazil, Belgium and Netherlands, Australia, and New Zealand.
Source: CEB H1 2013 Global Labor Market Survey.
Below Expectations
Meets Expectations
Exceeds Expectations
Global
Global
Asia
27
© 2014 CEB. All rights reserved. CHREB8407114SYN
Topic Selection Principles
1. Anchored on actual work, not
competencies
2. Practical, not theoretical
3. HR-specific for immediate value
4. Common development area
5. Deliverable virtually
ANCHOR STORYTELLING TOPICS ON WORKFLOWS, NOT JUST SKILLS
3M’s Monthly HRBP Storytelling Topic Selection ProcessIllustrative
Crowdsource Regionally Relevant Development Areas
3M’s Asia HR head crowdsources development areas based on gaps identified by country heads and their teams against the competency framework.
1 2 Filter Story Topics for Practicality in Day-to-Day Work
3M distills storytelling topics based on practicality and alignment with real HR workflows, rather than skills.
Regional HR Head
Country HR Heads
Country HR Heads
Selected Topics:
■ Local Strategy Creation
■ Metrics Use for Influence
■ Organizational Redesign
■ Translating Business Issues into HR Plans
■ Organizational Capability Development Tools
■ Engagement Best Practices
■ ……………..Source: 3M; CEB analysis.
28
© 2014 CEB. All rights reserved. CHREB8407114SYN
TRANSLATE LESSONS FROM SUCCESS STORIES FOR THE LOCAL MARKET CONTEXT
3M Asia’s Post-Storytelling Learning LocalizationIllustrative
Regional HR Head
HR Business Partners: China
HR Business Partners: Japan
HR Business Partners: India
Learning localization exercises help market teams reflect on opportunities and barriers to application, and adjust story takeaways for local application.
1
Accountability for Sharing Upward
Accountability for localizing and sharing feedback upwards with the regional HR head increases learner participation and engagement.
2
Reflection and Learning Localization Questionnaire Illustrative
1. Key Takeaways:
■ What were the key takeaways from the story?
■ What practical insights did we learn for our job?
2. Local Barriers to Utility:
■ What are the barriers we face in our country?
■ What would or would not work in our market?
3. Changing the Way of Working in the Market:
■ What can we begin replicating in our market immediately?
■ How will we change the way we work in our market?
4. Overall Feedback:
■ Was the storytelling session useful? Why or why not?
Source: 3M; CEB analysis.
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© 2014 CEB. All rights reserved. CHREB8407114SYN
0%
20%
40%
34%
29%
24%
USE EXTERNAL—NOT JUST INTERNAL—
(TALENT AND COMMERCIAL) INSIGHT
Maximum Impact on Enterprise Contribution of Groups Across the Performance “Ecosystem”
n = 23,339.Source: CEB 2012 Corporate Leadership Council High Performance Survey.
Max
imum
Impa
ct o
n E
nter
pris
e C
ontr
ibut
ion
Closer Farther
Distance from Employee For example
■ Customers
■ Candidates
■ Vendors
■ Partners
■ Professional associations
■ Alumni networks
Team Manager External
Note: The maximum impact on enterprise contribution is calculated by comparing two statistical estimates: the predicted impact when an employee scores relatively “high” on a driver and the predicted value when an employee scores relatively “low” on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.
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© 2014 CEB. All rights reserved. CHREB8407114SYN
EXTRACT (UNBIASED) CUSTOMER INSIGHTS FROM EXISTING SALES WORKFLOWS
Schneider Electric India’s HRBP Customer VisitsIllustrative
1 Leverage Existing (Cross-Functional) Workflows to Source Intelligence
Schneider Electric uses existing sales workflows to gain unbiased, high-value talent and business intelligence from external customers.
2 Use Flexible Guidelines to Allow HRBPs to Design Cu stomized Insight Exchanges
Schneider Electric India provides HRBPs the flexibility to collaborate with the sales employee to determine discussion questions based on the HRBP’s experience and HR and sales objectives.
Customer Visit Discussion Guide
Illustrative
Frequency: Once a quarter
Output:Report actions for HR and business leaders during monthly talent reviews.
My Key Questions
1.Business Insights:
Learn through silent listening and observation
■ Where does the business make or lose money?
■ How does the business serve this customer?
■ What are the top reasons customers cite for buying our products or services? 2. Talent Insights:
Draw implications through observation as well as direct questions■ What skills of the sales person draws the customer in?
■ What does the sales employee need for improving performance and productivity?
3. Brand Insights:
Ask customers pointed questions about the company for candid perspectives■ What are your perceptions of Schneider Electric India?
■ What are our strengths, weaknesses, opportunities, and threats?
CustomerSales
Customer
Sales+
HRBP
Source: Schneider Electric; CEB analysis.
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© 2014 CEB. All rights reserved. CHREB8407114SYN
TRANSFORMING ASIA HR’S ENTERPRISE IMPACT
FROM:HR SERVICE PROVIDER
Asia Root Cause 1 Wrong Focus on Driving HR or Financial Outcomes, Not
Enterprise Capabilities
Asia Root Cause 2 Striving to Marginally
ImproveOperational Effectiveness
or Do More
Asia Root Cause 3 Most Asia HR Staff Currently
Play an Operational or Administrative Role TO:
ENTERPRISE ENABLER
Refocus Asia HR on Enterprise Impact
Redesign HR Services to Drive Enterprise Capabilities
Reposition Asia HR Talent as Enterprise Enablers
■ Drive for Talent or Financial Results
■ See HR transformation as a Change Event
■ Perfect HR Processes and Structures
■ Strive to Do More HR
■ Respond to Emerging Trends
■ Improve Individual Staff Performance
■ Develop Strategic Skills
Center Asia HR Expectations and Accountability on
Enterprise ImpactReduce User Effort
Drive Network Performance Through Individual
Transformation
■ Drive Enterprise Capabilities
■ Enable Transformation as a Strategic Capability
■ Anticipate Future Talent and Business Trends
■ Make It Easy to Do Business With HR
■ Embed HR Design and Delivery in the Workforce
■ Activate Asia HR Network Performance
■ Facilitate Personalized Change
Prioritize Asia HR Investments Based on Enterprise Value
Design Regional HR Initiatives for Strategic Business
Objectives
Anticipate and Shape the Enterprise’s Future
Decorporatize (Select) HR Offerings
Engineer Productive Collaboration
Within the HR Function
Repackage Services for Greater Local Uptake
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