Transforming Asia HR's Enterprise Impact
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Transforming Asia HR's Enterprise Impact

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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 ...

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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Transforming Asia HR's Enterprise Impact Transforming Asia HR's Enterprise Impact Presentation Transcript

  • CEB Asia HR Leadership Council Transforming Asia HR’s Enterprise Impact Marcus Westling Direct: +65 6645 4248 E-mail: mwestling@executiveboard.com
  • © 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 CEB What 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 Asia CEB Asia Business Sentiment Index Costs and Competitive Intensity Rising in Asia Asia 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 Frequently Amount of Change in Organizational Objectives in the Past Three Years Types of Changes Defining the New-Work Environment Few Companies Enjoy Stability Companies 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 HR International 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 IMPACT) Misalignment of the Role Asia HR Is Playing Our 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 9
  • © 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 High Low Low Effectiveness at Talent Management EffectivenessatEnterpriseTransformation Source: CEB 2013 Asia HR Impact Survey. 10
  • © 2014 CEB. All rights reserved. CHREB8407114SYN Enterprising and Performing CHALLENGE 3: SUPPORTING AND REACTING, NOT ENTERPRISING 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 Deciding Adapting 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 11
  • © 2014 CEB. All rights reserved. CHREB8407114SYN THREE BARRIERS TO TRANSFORMING ASIA HR’S ENTERPRISE IMPACT Asia HR struggles to consistently create business value. 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 321 How 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. 12
  • © 2014 CEB. All rights reserved. CHREB8407114SYN TRANSFORMING ASIA HR’S ENTERPRISE IMPACT Asia Root Cause 1 Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities Asia Root Cause 2 Striving to Marginally Improve Operational Effectiveness or Do More Asia Root Cause 3 Most 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 Shape the 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’s Network 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 Outcomes Percentage of Asia HR Functions Held Accountable, by Accountability Measures 15
  • © 2014 CEB. All rights reserved. CHREB8407114SYN Country: South Korea METRICS WEIGHT JAN FEB MAR Staff Service Score 20% Voluntary Turnover Management Positions Filed Internally Manager Training Hours Wage Cost Percent Versus Total Revenue Country: Japan METRICS WEIGHT JAN FEB MAR Staff Service Score 20% Voluntary Turnover Management Positions Filed Internally Manager Training Hours Wage Cost Percent Versus Total Revenue Country: India METRICS WEIGHT JAN FEB MAR Staff Service Score 20% Voluntary Turnover Management Positions Filed Internally Manager Training Hours Wage Cost Percent Versus Total Revenue Country: China METRICS WEIGHT JAN FEB MAR Staff Service Score 20% Voluntary Turnover Management Positions Filed Internally Manager Training Hours Wage Cost Percent Versus Total Revenue Region: Asia METRICS WEIGHT JAN FEB MAR 1. Staff Service Score 20% 2. Voluntary Turnover 25% 3. Management Positions Filled Internally 20% 4. Manager Training Hours 15% 5. Wage Cost Percent Versus Total Revenue 20% EMBED ECOSYSTEM METRICS INTO (HR) FUNCTIONAL SCORECARDS Marriott’s Asia HR Scorecard Illustrative 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 1 Ecosystem 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 Execution Illustrative Function: Operations Month: March, 2013 METRICS WEIGHT JAN FEB MAR System and Process Execution Analysis Accuracy Staff Service Score Management Positions Filled Internally Budget Management Function: Human Resources Month: March, 2013 METRICS 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, 2013 METRICS 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, 2013 METRICS WEIGHT JAN FEB MAR Sales Volume Sales Effectiveness Profitability Manager Training Hours Customer Relationship Management Regional Sales Leader Regional Business Leader 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 1 Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities Asia Root Cause 2 Striving to Marginally Improve Operational Effectiveness or Do More Asia Root Cause 3 Most 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 Shape the 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 Use Percentage of All Employees Agreeing or Strongly Agreeing HR Overlooks User Effort in HR Service Design Percentage 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 Activities Percentage 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 improve enterprise capabilities directly Priorities and Purchasing Behaviors Goal: Understand trends inyounger generations’ values and purchasing habits ■ What are younger employeesworking towards (getting married, buying a home, starting a family) ■ What are your mainpriorities inlife? (career, family, friends, personal interests) ■ How close withare you with your family? How does your families’ point of view influence your choices? ■ What are your favorite brands?Where do youlike to shop & why? ■ What influences your purchasing decisions? CommunicationsandTechnology Trends Goal: Understanding how young talent get and share information, use technology ■ How do young professionals communicate? ■ What trends do yousee becoming more permanent (social media, social networking etc.) ■ Gainunderstanding of a young employee’s communicationstyle. How they communicate opinions and ideas at work and at home? Evolving Workforce Preferences Goal: Understand how the younger generationthinks about their career ■ Why do young talent value careers and what are their motivations? ■ What do young talent expect from the companytheywork for and how long will they wait to get what they want before they leave. Management Styles andHierarchy Goal: Understand how hierarchyimpacts/influences younger employees 4 3 2 1 Reverse Mentoring Program Participant Contract As a Mentor, I will Focus on the specific challenges that my mentee wantsto 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 ideasand solutionsto addressthe challenges we are discussing. Suggest other challengesyoung professional’s face in the organization as appropriate. Commit to and keep timely appointments. Listen without being judgmental. Respect confidentialityof matters discussed. – My Mentee and I may mutually agree to share information publicallyat 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 Mentee Be open to uncomfortable realities where applicable “Seek please, don’t tell” -avoid giving ‘my take’ Mentor Lead and drive the mentorship Focus on the objective Share 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 intentionally neutralizes 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 Guide Illustrative Standardized Guidelines Scalably Facilitate Targeted Exchange Kimberly-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 Advantage Percentage 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 Underutilized Percentage 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 1 Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities Asia Root Cause 2 Striving to Marginally Improve Operational Effectiveness or Do More Asia Root Cause 3 Most 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 Shape the 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 Inexperienced Age Distribution of HR Staff Asia HR Staff 23% Asia Source: CEB Asia and Global Labor Market Surveys. PercentageofPopulation 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 Performance Percentage 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 Process Illustrative 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 Localization Illustrative 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. 29
  • © 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. MaximumImpactonEnterpriseContribution 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. 30
  • © 2014 CEB. All rights reserved. CHREB8407114SYN EXTRACT (UNBIASED) CUSTOMER INSIGHTS FROM EXISTING SALES WORKFLOWS Schneider Electric India’s HRBP Customer Visits Illustrative 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 Customized 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. 31
  • © 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 Improve Operational 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 Impact Reduce 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 32