The “New” New Normal: Global Mobility as a Strategic Advisor

PRESENTER: Andrew P. Walker Principal, Mercer

THE NEW NORMAL 1.0

The 2008 Turning Point >Global financial downturn pushed mobility to adapt Operational excellence as the core competence Improved efficiencies Reduced costs Aligned policies

New Normal 1.0 >More proactive supplier management o Leveraged global purchasing power o Increased service levels >Added policy options o Alternatives to the traditional / “full” package o Rationalized use of assignments >Mobility functional alignment with business o Rash of repatriations o Clearer understanding of “why”

THE NEW NORMAL 2.0

The Age of Enlightenment >“Talent Mobility” Right policies for right cost Alignment with Talent Right people for right reasons

An Integrated Strategy TALENT TOTAL REWARDS The right PEOPLE… in the right PLACES and ROLES… PLANNING at the right COST… For the right length of TIME and RESULT… INVESTMENT

Segmented Talent Pools Strategic business leadership Emerging, high-potential talent Seasoned technical experts Career-building volunteers Business value LowHigh Development Value

Aligned Policies Full terms plus “Inducement” Reduced terms “Mutual benefit” Full terms “Comprehensive” Minimum “Compliance” Business value LowHigh Development Value

Lots of Momentum… But! 23% It’s happening 46% Thinking about it 23% Know they should 8% Don’t care Source: Mercer Consumer Products Industry Talent Mobility Survey 2011

Where to Start? Determine Global Mobility Purpose and Strategy Determine Global Mobility Purpose and Strategy Business Context Business Context Assess Current Program Develop Tiered Approach to Compensation & Benefits Document Decision Points for HR & Line Management Implement & Communicate Mobility Context Mobility Context Assignment Policy Internal Roadmap Internal Roadmap Change Management Why mobility happens How well is it working? Policies to best support desired outcomes Policy decision & governance framework Rolling it out & bedding it down

Metrics Organizational development Mobility as a portfolio investment Competitive practice Making the Business Case For Change

Where This Takes The Mobility Leader >Mobility managers are focused on strategy improvements, consistent standards, cost savings and, increasingly, talent management >Evolving into strategic advisors o Aligning principles and policies o Collaborating with Reward to achieve a consistent design o Helping the business to understand why they use mobility and how they can do so more effectively

Where This Takes The Mobility Leader >Gaining and maintaining consistency in mobility practices o Identifying talent and selecting assignees o Establishing the assignment business case >Managing the end-to-end experience (versus end-to-end process) >Saving costs; increasing value >Linking with Talent: becoming a talent agent

Meanwhile… >Business leaders have faced unparalleled challenges over the past two years >Paradox: Cut costs and expand >New emphasis on reaching across markets to create new opportunities and execute business strategies >Leadership talent is required to have a strong global mindset and international experience

Leadership Development >Clear alignment with leadership priorities and opportunities presented by well-run mobility program >Number 1 focus in HR’s leadership field: Global Leaders

Source: DDI, Bersin, ,000 Managers Globalization of Business and Talent – Warning Signs Source: Muczyk & Holt, 2008 Don’t have necessary skills Fortune 500 Lack global leaders

Workforce Crisis On The Horizon 25,000,000 45,000, % 25,000,000 45,000, % 40%

THE NEW NORMAL 3.0

>Further evolution required >Global Mobility must continue to respond “More than ever, mobility functions are under pressure to create efficiencies, add value, and operate strategically while continuing to improve its operation effectiveness” “Confronting and Mastering Global Mobility” by Josy Koumans and Mike Piker, 2011 The “New” New Normal

Critical Talent and Roles 1 Strategic Workforce Planning 2 Targeted Employee Value Propositions 3 Outcome Analysis and Modeling 4 Connect and Engage! 5 Five Critical Principles

Future workforce needs based on multi-year strategic business scenarios Current and Projected internal and external supply of critical talent Supply Demand Value risks costs timing Strategic Workforce Planning

Organizational Development Employee Development Governance Cost Management Providers Pay & Payroll Policies Process Strategic Alignment Workforce Leadership Operational Excellence Synergy Driving Success Clarity Compliance Consistency Driving Business Outcomes Strategy Effective Talent Management Practices Putting the Pieces Together

Global Mobility 3.0 Operational excellence Talent Mobility Workforce strategy Driving successful business outcomes The New New Normal

THANK YOU!