Strategic HR Management Focus on People Development Julie Chu / Oct. 2010

Purpose Share the vision on why people development is so important to an organization Understand the key steps on people development Be aware of some key challenges organization will face in people development

Outlines Issues Actions Challenges

Companies are lacking of talented people to support their strategic growth Managers complain that the people inside the organization are not capable for new responsibilities Employees with potential complain that they got no development opportunities, and leave the company Recruiting needs increased with huge cost up, yet Many new managers’ from outside fail in the new organization Employee may be a good individual contributor, but can’t foresee their ability to manage a team; Gap between employees’ self perception v.s. assessment from the management team, no relevant tools to help to improve self awareness and continuous progress Everybody is looking for opportunities outside, talented people are hunted and cost increased without rationality Failure of new managers’ (high salary, high expectation, cultural difference, internal stress……)

Organizational capability differentiate companies’ capabilities Technological Capability Financial Strategic Organizational

Outlines Issues Actions Challenges People issue has become one of the top priorities for many CEOs Actions Challenges

Where to find talented people? Challenges External hiring of talented people is a quick solution, but it may not solve all the problems In local China market, short supply of qualified people Very fierce competition from all companies Talented people are more & more demanding Integration success rate

Where to find talented people? Opportunities In local market, abundant supply of fresh graduates or people with 2-3 years working experience provide good hiring pool In 2009, we have 100000 Chinese overseas returnees Asian or western talented people are more & more interested in China market Are we sufficiently attractive to the potential talented people?

Start by making our hiring activity more future oriented Not only hire to meet current needs, but also hire for future growth Not only hire for a job need, but hire for a long term perspective Employer’s brand Make our offer attractive

Develop multiple hiring channels Locally Cooperate with schools For some specific profession, sponsor good potential students for their overseas studies and offer internship opportunities before hiring Establish link with targeted school International outlook Make use of worldwide hiring network Overseas campus recruitment Cooperation with hunters with global experience

Nurture people development culture inside the organization Associate with the business strategy, develop clear HR strategies CEOs shall have personal commitment HR department shall be fully empowered to drive the HR processes People development shall be included in each level manager’s performance objectives We start by understanding our people’s potential Here I assume that the HR process will be able to generate the annual recruitment needs, including operations needs, growth needs

What is potential? Different organization may have different definition in potential We describe it as the highest level of responsibilities that an employee can take within 5 or 10 years Managers are the best placed to assess employees’ potential with HR’s support

Why do we need to assess potential? Necessary to fulfill a role, but not sufficient Expertise Knowledge Behavior Communication Listening Leadership Can predict long-term success In order to present this slide, when the title appears, say to participants: “As you recall from earlier phases of competency training, there are 2 essential components to competencies, the first is Knowledge and Experience. Click once to display the top part of the iceberg (knowledge component). This is the visible component i.e. it can be seen by simply reviewing employee files, resumes, etc. It is necessary to fill a role, but by itself, not enough to assure that we will be successful. Discuss with participants ‘that research has shown that the key factor in determining superior performance is the lower part, the demonstrated behavior component, that will have a more significant impact on long-term success’. Click again to reveal the lower part of the iceberg. Unless we take the time to observe and evaluate these behaviors, the true drivers for development that will lead to success will remain hidden, just like most of the iceberg is hidden from our view. It is these competencies (the lower section) that were examined in order to create the managerial competency referential.

We need to customize development program for people with different level of potential Normal employees Integration Initial training On job learning & development Career progress speed is relatively slow We focus on 2 types of potentials High potential & boosted potential This group becomes a population to monitor for development and retention Relatively quick career development path

Potential assessment approach Next level company needs gap assessment Internal observation External observation (behavior)

Put in place simple criteria in internal potential assessment Performance and Values alignment are the 2 pre-requisites criteria Potential assessment shall also take the following into consideration: Adaptability Determination Management of situation Impact and influence

What is the process linked with potential assessment? Potential has been preliminary assessed at hiring stage Potential needs to be assessed & reviewed over time We conduct potential detection on yearly basis HR coordinate potential validation panel The process is kicked off at year end, validation panel is organized in Q1 of following year The process cover whole population

Leadership program for high/boosted potential employees Learning: attend a 18 months program to learn leadership skills and knowledge in business administration, and learn to work in cross function Development: obtain feedback through 360o survey and improve self awareness through Harrison Test, form IDP associated with external coaching session Networking: establish networking relationship through the leadership program and global integration program Holding a post abroad to develop networking and international exposure Oversea training for middle level management

Put BP/HP employee in the situation Business department to specify the future organizational evolution & needed profiles Vacant posts can be generated from succession planning Create some intermediate posts if necessary Based on validated potential, future needs and succession planning, HR to build individual career path Put individual in situation

Outlines Issues Actions We have no time to waste, every manager in the organization need to be mobilized to act now to focus on people development Challenges

Key challenges organization will face on people development Engagement of business managers on people development Managers have no time to coach the high potential employees Other HR processes shall follow the people develop process Continuous training/learning support is expensive Create a culture of learning and empowerment for BP & HP High potential employees’ retention KPI management, are business managers willing to release their high performer for their future development? Time consuming process,

Outlines Issues Actions Challenges Are we ready to invest in time and money on people development?

Thanks for your attention