aligning talent management and succession planning with business strategy comfori hr conference

ALIGNING TALENT MANAGEMTENT AND SUCCESSION PLANNING WITH BUSINESS STRATEGY Case Study of CNI’s Journey Kenny Ong CNI Holdings Berhad Contents: A Principles and Objectives B Attract and Identify C.Strategy Examples D.Issues and Challenges E Mistakes and Lessons F What’s Next? G.For Starting Up… About: CNI 18 years old Core Business: MLM Others: Contract Manufacturing, Export/Trading, eCommerce Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan Staff force: ± 500 Distributors: 250,000 Products: Consumer Goods and Services A Principles and Objectives Principles Background Needs HR A Principles and Objectives Principles Background & Implications 1.Founders 2.Senior leaders 3.Dedication & commitment 4.Multi-racial, multi-cultural 5.Age, Gender not a barrier 6.Operational culture 7.Operations-intensive 8.Customers and policies 9.Vocal and demanding 10.Flexibility vs Discipline 11.Systems run operations 12.Hierarchy and status 13.Ad-hoc 14.Project-based 15.Meetings 16.Empowerment 17.Do not dare consult 18.Young talents leaving The Four Desperates Desperate Competition Desperate Consumer Desperate Achievers Desperate Changes A Principles and Objectives Principles Company’s Needs Succession Planning of Key Leaders – Founding Directors (perpetual business theory) Retention of Key Staff – especially younger ones Transform into a Performance-based organization A Principles and Objectives Principles HR Philosophy Equal / Fair Happy / Productive Hire Low, Train High Performance vs Potential SP drives TM Retention / Engagement Talent Pool owned by the company A Principles and Objectives Objectives of Talent Management Succession Planning Retention of Key Staff Performance-based organization A Principles and Objectives CNI Model A: In theory… B Attract and Identify POTENTIAL • Identify Group I ( Potential) (Talent Pool) Group IV Group III (Counseling) ( Performance) Group II 4 3 PERFORMANCE B1 Additional Categories Definition of ‘Premium’ staff Specially selected from the TP They have in addition, the following attributes: a High-profile in the field or industry b Loyalty proven c Proven high work-rate and great attitude d Undeniable contribution and efforts e Highly looked upon and respected by most staff f Ability to multi-task and assist in various areas g Key people in CNI’s Succession Plans Definition of ‘Specialist’ Staff Has competencies (skills & knowledge) in a particular professional field of work A staff is deemed to be a Specialist when all the following occurs: a The particular Competency (Skills or Knowledge or both) is highly required by CNI b Supply for the competency in the market is low but demand is high c The competency is difficult to learn, transfer and/or duplicate B Attract and Identify • Attract – CNI’s candidate attraction strategy is not strong at this moment • Hiring – Behavioral Event Interview – Panel – Telephone Interview – Live Assessments – Big Psychometric Profile C Strategy Examples CNI Model B: More Practical… P/P Grid, SP Table, PDP, Premium, Selection P/P Grid, Q12, PA, SDP, SP Evaluation Business Strategy Development Motivation Q12, C&B, ACDP, SCL, Transfers, Events, Recognition OJT, Mentoring, Big-5, LP, PDP, SDP, Projects, C1 Strategy: C&B Eliminate Staff Awards Eliminate Staff Trips Eliminate HOD trips Remove Salary structure limitations for TP Premium Group Pay Year-round promotions/increment Spot Bonus Pool Additional Profit Sharing points for TP ↑ Pay for Performers, ↓ pay for NonPerformers 10 Additional % during annual increments 11 Special Allowances 12 SCL Allowances 13 Flexitime D Issues and Challenges HODs unclear HODs disagree/unsupportive of TM HODs not committed to developing staff Functional silos HODs not willing to openly differentiate staff Incompetent superiors/HODs to TP staff Succession plan for specific positions is a moving target D Issues and Challenges Difficult to evaluate Performance Difficult to evaluate Potential 10.Aligning TM and SP with Business Goals 11.To the Talent Pool, it is more work, no reward 12.Unsynchronized and unmonitored training and development 13.Difficult for TP staff to allocate time for training and development 14.“Once in, always in” predicament E Mistakes and Lessons Succession Planning = business directions CEO’s role Separate HRM and TND departments Measuring Potential is really difficult Two types of Talent: Leaders and Specialists Openly announcing the Talent Pool - painful! PDP group of rough diamonds Split Leadership Development Official annual ‘Event’ 10.TM = Annual Performance Appraisal Discussions E Mistakes and Lessons 11.Quarterly Performance Appraisals 12.Change attitude and become arrogant 13.Create a ‘Premium Group’ 14.Projects and OJT assignments 15.HODs = TP caretakers 16.HODs can get isolated and jealous 17.Under-performing HODs 18.Rewards 19.Sell and allocate their TP candidates 20.TM = HRM E More problems we faced Criticism of TP selection Limited Funds ‘Silo’ mentality Competitor recruitment target! Removal of Talent Pool members F What’s Next? Revamp LP Task Forces Over pay ‘Premium’ from market Give talk in Induction Program Assign talent pool to other Divisional meetings Conduct 'Stay' interviews Start an intranet e-forum Flexi-benefits scheme for TP Survey to select their Top most wanted special benefits 10.Form central committees F What’s Next? 11.Develop "XP Database" - similar to a Jobstreet® CV 12.Change Potential Evaluation; 13.Break Talent Pool into Small Groups 14.Social Work 15.New methods for SP 16.3 months 'acting manager' program 17.Introduce 360° appraisal 18.Reinforce: Mentoring, Specialist Career ladder, E-Learning 19.Maximize Talent using BCG Matrix G For Starting Up… Get the Business Strategy right Link HR’s role to Strategy (e.g BSC) Clarify the HR Philosophy Strengthen Performance Management System Tackle the Learning Culture Redirect Funds ($$) Design simple Selection process Develop and Reward focused on Talent Pool Communicate throughout 10.Attend more Comfori conferences Summary Segmented & Targeted Attraction, Retention and Succession STARS™ Thank You soft copy of slides: kennyong@cni.com.my ... predicament E Mistakes and Lessons Succession Planning = business directions CEO’s role Separate HRM and TND departments Measuring Potential is really difficult Two types of Talent: Leaders and Specialists... Engagement Talent Pool owned by the company A Principles and Objectives Objectives of Talent Management Succession Planning Retention of Key Staff Performance-based organization A Principles and Objectives... E-Learning 19.Maximize Talent using BCG Matrix G For Starting Up… Get the Business Strategy right Link HR? ??s role to Strategy (e.g BSC) Clarify the HR Philosophy Strengthen Performance Management System