ALIGNING TALENT MANAGEMTENT AND SUCCESSION PLANNING WITH BUSINESS STRATEGY Case Study of CNI’s Journey Kenny Ong CNI Holdings Berhad

Contents: Principles and Objectives Attract and Identify Strategy Examples Issues and Challenges Mistakes and Lessons What’s Next? For Starting Up…

Principles and Objectives

Attract and Identify

Strategy Examples

Issues and Challenges

Mistakes and Lessons

What’s Next?

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

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 1. Background 2. Needs 3. HR

A. Principles and Objectives Principles 1. Background & Implications Founders Senior leaders Dedication & commitment Multi-racial, multi-cultural Age, Gender not a barrier Operational culture Operations-intensive Customers and policies Vocal and demanding Flexibility vs. Discipline Systems run operations Hierarchy and status Ad-hoc Project-based Meetings Empowerment Do not dare consult Young talents leaving

Founders

Senior leaders

Dedication & commitment

Multi-racial, multi-cultural

Age, Gender not a barrier

Operational culture

Operations-intensive

Customers and policies

Vocal and demanding

Flexibility vs. Discipline

Systems run operations

Hierarchy and status

Ad-hoc

Project-based

Meetings

Empowerment

Do not dare consult

Young talents leaving

The Four Desperates 1. Desperate Competition 2. Desperate Consumer 3. Desperate Achievers 4. Desperate Changes

A. Principles and Objectives Principles 2. 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

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 3. HR Philosophy Equal / Fair Happy / Productive Hire Low, Train High Performance vs Potential SP drives TM Retention / Engagement Talent Pool owned by the company

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

Succession Planning

Retention of Key Staff

Performance-based organization

A. Principles and Objectives CNI Model A: In theory…

CNI Model A: In theory…

A. Principles and Objectives CNI Model B: More Practical… Business Strategy OJT, Mentoring, Big-5, LP, PDP, SDP, Projects, P/P Grid, SP Table, PDP, Premium, Q12, C&B , ACDP, SCL, Transfers, Events, Recognition P/P Grid, Q12, PA, SDP, SP Selection Development Motivation Evaluation

CNI Model B: More Practical…

A. Strategy First… Culture Corporate Objective Corporate Strategy Structure Resources Leadership Person

A. Strategy First… Balanced Scorecard Market Disciplines

Balanced Scorecard

Market Disciplines

A. Strategy First… Financial Learning & Growth Internal Process Customers / Distributors Revenue Growth Productivity Market Value Department Operations Supplier & Alliances External Involvement Target Markets Products/ Services Channel Strategies Human Resources Technology Information & Intelligence Systems & Processes

A. Strategy First… Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)

B. Attract and Identify 1 year Service E1 and above Finalized by BOD Non-HOD Supported by HOD Decision? Identify

Identify

B. Attract and Identify Group I (Talent Pool) Identify 2 3 4 5 PERFORMANCE 2 3 4 5 POTENTIAL

Identify

B. Attract and Identify Group I (Talent Pool) Group II (  Potential) Group III (  Performance) Group IV (Counseling) 2 3 4 5 2 3 4 5 PERFORMANCE POTENTIAL Identify

Identify

B1. Additional Categories Definition of ‘Premium’ staff Specially selected from the TP. They have in addition, the following attributes: High-profile in the field or industry Loyalty proven Proven high work-rate and great attitude Undeniable contribution and efforts Highly looked upon and respected by most staff Ability to multi-task and assist in various areas 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: The particular Competency (Skills or Knowledge or both) is highly required by CNI Supply for the competency in the market is low but demand is high The competency is difficult to learn, transfer and/or duplicate

Definition of ‘Premium’ staff

Specially selected from the TP.

They have in addition, the following attributes:

High-profile in the field or industry

Loyalty proven

Proven high work-rate and great attitude

Undeniable contribution and efforts

Highly looked upon and respected by most staff

Ability to multi-task and assist in various areas

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:

The particular Competency (Skills or Knowledge or both) is highly required by CNI

Supply for the competency in the market is low but demand is high

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 5 Psychometric Profile

Attract

CNI’s candidate attraction strategy is not strong at this moment.

Hiring

Behavioral Event Interview

Panel

Telephone Interview

Live Assessments

Big 5 Psychometric Profile

C. Strategy Examples CNI Model B: More Practical… Business Strategy OJT, Mentoring, Big-5, LP, PDP, SDP, Projects, P/P Grid, SP Table, PDP, Premium, Q12, C&B , ACDP, SCL, Transfers, Events, Recognition P/P Grid, Q12, PA, SDP, SP Selection Development Motivation Evaluation

CNI Model B: More Practical…

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 Non-Performers Additional % during annual increments Special Allowances SCL Allowances Flexitime

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 Non-Performers

Additional % during annual increments

Special Allowances

SCL Allowances

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

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 Aligning TM and SP with Business Goals To the Talent Pool, it is more work, no reward Unsynchronized and unmonitored training and development Difficult for TP staff to allocate time for training and development “Once in, always in” predicament

Difficult to evaluate Performance

Difficult to evaluate Potential

Aligning TM and SP with Business Goals

To the Talent Pool, it is more work, no reward

Unsynchronized and unmonitored training and development

Difficult for TP staff to allocate time for training and development

“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’ TM = Annual Performance Appraisal Discussions

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’

TM = Annual Performance Appraisal Discussions

E. Mistakes and Lessons Quarterly Performance Appraisals Change attitude and become arrogant. Create a ‘Premium Group’ Projects and OJT assignments HODs = TP caretakers HODs can get isolated and jealous. Under-performing HODs. Rewards Sell and allocate their TP candidates TM = HRM

Quarterly Performance Appraisals

Change attitude and become arrogant.

Create a ‘Premium Group’

Projects and OJT assignments

HODs = TP caretakers

HODs can get isolated and jealous.

Under-performing HODs.

Rewards

Sell and allocate their TP candidates

TM = HRM

E. More problems we faced Criticism of TP selection Limited Funds ‘Silo’ mentality Competitor recruitment target! Removal of Talent Pool members

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 5 most wanted special benefits Form central committees

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 5 most wanted special benefits

Form central committees

F. What’s Next? Develop "XP Database" - similar to a Jobstreet® CV Change Potential Evaluation; Break Talent Pool into Small Groups Social Work New methods for SP 3 months 'acting manager' program Introduce 360° appraisal Reinforce: Mentoring, Specialist Career ladder, E-Learning Maximize Talent using BCG Matrix

Develop "XP Database" - similar to a Jobstreet® CV

Change Potential Evaluation;

Break Talent Pool into Small Groups

Social Work

New methods for SP

3 months 'acting manager' program

Introduce 360° appraisal

Reinforce: Mentoring, Specialist Career ladder, E-Learning

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 Attend more Comfori conferences

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

Attend more Comfori conferences

Summary Segmented & Targeted Attraction, Retention and Succession STARS ™

Segmented & Targeted

Attraction, Retention and Succession

STARS ™

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