Internal Branding To Strengthen Talent Retention Strategies

INTERNAL BRANDING TO STRENGTHEN TALENT RETENTION STRATEGIES ABF Post-Conference Workshop, 23 rd April 2008 Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com

Basics of Retention Regardless of Branding or No Branding www.myCNI.com.my www.OOBEY.com

The 51.28% Theory

Resign = Push + Pull > 51.28%

If staff is Happy:

=> 0 + Pull > 51.28%

www.myCNI.com.my www.OOBEY.com

Philosophy Ultimate Objective of Marketing: “ Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman “ Retention and Loyalty are useless if No Conversion is happening.” www.myCNI.com.my www.OOBEY.com

Philosophy “ Retention and Loyalty are useless if No Conversion is happening.” “ Retention and Loyalty are useless if No Performance is happening.” www.myCNI.com.my www.OOBEY.com

Philosophy

Loyalty is misleading…

Heavy Consumption ≠ Loyalty

Loyalty ≠ Heavy Consumption

Good Performance ≠ Retention

Retention ≠ Good Performance

Philosophy

“ In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied .”

HBR March/April 1996 www.myCNI.com.my www.OOBEY.com

Retention Groups Retention Experience Swing Ex Oppose www.myCNI.com.my www.OOBEY.com

Retention 1: Experience

Loyalty = Experience vs. Expectations

Solution Strategy: Expectations = Business, Boss (Q12), Job www.myCNI.com.my www.OOBEY.com

Loyalty 1: Experience

Clear expectations

Resources

Maximize talents

Recognition

Caring Boss

Encourage development*

Expression

Company Mission

Co-workers**

Friends

Progress updates

Learn and Grow

What “Expectations”? Refer Q12

Loyalty 2: Swing

Loyalty = Best alternative at the current moment until I find another alternative

Solution Strategy: Improve your Q12, or Try Your Best, or Live with It www.myCNI.com.my www.OOBEY.com

Brand Execution: Talent Sub-segment - Swing

Swing Talents are “loyal” because:

Individual Relationships

Convenience (at that point in time)

Contractually tied-up

Direct Incentives*

No better alternative

Subordinates

No known alternative

CV friendly

Dangers of Direct Incentives

lessen internal motivation,

switch to mercenary mode,

do something and do not do something else,

bribe and fraud culture,

easier for competitors to recruit,

lessen teamwork & helpful culture,

less and less impact for same value,

mockery of base salary and employment contract,

rebellion from non-incentivised staff,

end up incentivising everyone for everything?,

Swing Talents: Try Your Best…

Over Promote

Loans

Spot Bonuses

Block recruiters

The Spouse

Toys

Glorified Titles

Forced Ambassador

“ Position” the competition

Sell the Dream

Give them a Best Friend

Internal Trainer

Current Brand vs. Ideal Brand Know the past to create the future www.myCNI.com.my www.OOBEY.com

Current ‘Brand’ Current Status Background & Implications

Founders

Senior leaders

Age, Gender, Race not a barrier

Customer-focused, really focused

Flexibility vs. Discipline

Ad-hoc

Project-based

Empowerment

Young talents leaving

Current Brand: The Four Desperates 1. Desperate Competition 2. Desperate Consumer 3. Desperate Achievers 4. Desperate Changes www.myCNI.com.my www.OOBEY.com

Components of Branding Positioning, Execution, and Communication www.myCNI.com.my www.OOBEY.com

Objective of Branding: Way back in 2004…

Thomas Cup, Indonesia

Objective of Branding: Now in 2007…

CNI ‘Beemax’ Factory Visit, China

Top Leaders

Product Development

Media

Components of Branding Positioning Execution Communication www.myCNI.com.my www.OOBEY.com

Brand Positioning Segmentation, Targeting, Basics, Differentiators www.myCNI.com.my www.OOBEY.com

Positioning

“ Hope is not a strategy”

John Maxwell

Positioning

For who? – Segmentation, Targeting

Your Offer?

Key Differentiator?

Two Types of Segmentation for HRM

Demographic segmentation

Talent segmentation

Demographic Segmentation - General www.myCNI.com.my www.OOBEY.com Veterans (Pre-Boomers) 1934-1945 Boomers 1945-1960 Gen X (Cusper, Buster) 1960 - 1980 Gen Y (Millennials, Netster) 1980+

Demographic Segmentation - others

Women, Working Mothers

Youtube generation

Working retired

Social Activists

Work/Life balancers

Industry (ICT, Advertising, Engineer, Accounting, Lawyer, etc.)

Talent Segmentation

Who is your Talent?

 : A Talent for others does not mean a Talent for you www.myCNI.com.my www.OOBEY.com

Talent Segmentation Group I (Talent Pool)

Identify

www.myCNI.com.my www.OOBEY.com 2 3 4 5 PERFORMANCE 2 3 4 5 POTENTIAL

Talent Segmentation Group I (Talent Pool) Group II (  Potential) Group III (  Performance) Group IV (Counseling) 2 3 4 5 2 3 4 5 PERFORMANCE POTENTIAL

Identify

Talent Segment Targeting

Unwanted by big MNCs

Small companies

Boring Environment

No Growth/Learning

No MBA

Passion, Values, IQ (streetsmart)

Appreciate Chaos

Multitask

Passion to Learn

Talent Sub-segmentation: Premium target

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

Talent Sub-segmentation: Specialists target

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

What needs work? Current Brand Importance to Target Segment High Low Weak Strong www.myCNI.com.my www.OOBEY.com High Salary Career Opportunities Familiarity with Tasks Training Opportunities Attractive Location For people like me Fun place to work Expected success of application Innovative company

Activity Grid to determine HRM priorities www.myCNI.com.my www.OOBEY.com Eliminate (-) What are features/ activities/services to eliminate? Reduce (↓) What are features/ activities/services to reduce? Create (+) What are features/ activities/services to introduce? Increase ( ↑) What are features/ activities/services to increase?

Basics & Differentiators Segments Targets Targets Basics Differentiators www.myCNI.com.my www.OOBEY.com

COMMUNICATION ARCHITECTURE BRAND POSITIONING “ Tagline” KEY SUPPORTING MESSAGES KEY MESSAGES SPECIFIC TO INTERNAL/EXTERNAL SEGMENTS EMPLOYEES Image Development KEY SEGMENTS TARGET GROUPS SPECIFIC SEGMENT

KEY MESSAGES

Who am I?

What do I offer?

Support?

End benefit(s)

Tagline:

Brand Execution Alignment, Basics, Differentiators Also known as ‘Reason To Believe’ www.myCNI.com.my www.OOBEY.com

Brand Execution: Aligning the 4-Wheels Philosophies Brand Position Segmentation & Targeting www.myCNI.com.my www.OOBEY.com Structure Resources Leadership Person

Brand Alignment: Talent Segment Philosophies Principles HR Philosophy

Equal / Fair

Happy / Productive

Hire Low, Train High

Performance vs Potential

SP drives TM

Talent Pool owned by the company

Retention / Engagement

Brand Alignment: Demographics Segment Philosophies? Principles HR Philosophy www.myCNI.com.my www.OOBEY.com

Alignment: Framework

Org Structure

Job Design

C&B

Policies & procedures

Decision making

Job fit

Management Systems

BSC and KPIs

Decentralized vs. Centralized

Control vs. Empower

www.myCNI.com.my www.OOBEY.com Structure

Strategy: Framework

Tools

Physical facilities

Peer support

Information

T&D Programs

Mentors

Guides

ICT

OJT

www.myCNI.com.my www.OOBEY.com Resources

Strategy: Framework

Role modeling

Vision/Mission/Philosophy

Leadership Style

Delegation & Empowerment

C&B

Promotions

Transition development

www.myCNI.com.my www.OOBEY.com Leadership

Strategy: Framework

Recognition

Recruitment

Training

Values

Motivation

Self Efficacy

Awareness

Useful Competencies

Career aspirations

Attribution (control)

www.myCNI.com.my www.OOBEY.com Person

Alignment: 4-Wheels Model Philosophies Brand Position Segmentation & Targeting Structure Resources Leadership Person

Brand Execution: Talent Segment

Talent Segment

Philosophy 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 www.myCNI.com.my www.OOBEY.com Development Motivation Evaluation

Brand Execution: Demographic Segment

Key Demographics

Philosophy Selection www.myCNI.com.my www.OOBEY.com Development Motivation Evaluation

Example Brand Execution: Talent Segment - 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

Demographic Segment: Example Strategies

Gen Y

ICT

Women

Sample Policy: Career

Internal Transfer

Internal Selection

Rotation

Special Projects

Transitional assignments

Secondments

Roll-out teams

Sabbaticals

Tele-commuting

Part-time

Micro business units

Specialist Career Ladders

Employee Exchange programs

Boomerangs

Job enlargement (depth)

Job enhancement (breadth)

Freelance, Consulting

Job Reduction

Brand Communication Image, Touch Points, Repetition, and Emphasis www.myCNI.com.my www.OOBEY.com

Attract

“ You don’t attract who you want. You attract who you are ”

John Maxwell

Attract

What’s your main Differentiator?

Money? Opportunity? Big Projects? Big Clients? Career Growth? Environment? Love and Fresh Air?

Fish where the Fish are…

Hire Strict. Refuse if possible.

Who you retire determines who you attract

Attract: HR and Marketing

Who designs your Job Ads?

It better be Marketing

Understand the psychology of a Talent Job Seeker when reading Job Ads

Not sure? Consult experts

Use Marketing weapons for Job Ads: brand logos, slogans, newspaper clips, awards, customer profile, video clips, web, banners etc.

COMMUNICATION ARCHITECTURE BRAND POSITIONING “ Tagline” KEY SUPPORTING MESSAGES KEY MESSAGES SPECIFIC TO INTERNAL/EXTERNAL SEGMENTS EMPLOYEES Image Development KEY SEGMENTS TARGET GROUPS SPECIFIC SEGMENT

KEY MESSAGES

Who am I?

What do I offer?

Support?

End benefit(s)

Tagline:

Touch Points Candidates/ Employees Gov./ Politics Customers Public Events Economics AGM Ads Internet* Annual Report Media Analysts Ex-employees Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com

Touch Pointsl Candidates/ Employees Gov./ Politics Customers Public Events Economics AGM Ads Internet Annual Report Media Analysts Ex-employees Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com

The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Internships, joint projects with University Events, workshops, campaign visits, seated dinners www.myCNI.com.my www.OOBEY.com

The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Mentorship programs Campus presentations, career fairs Online games, sponsorship of awards www.myCNI.com.my www.OOBEY.com

The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Direct Marketing (eg. mailing) Direct-response marketing Print media, radio www.myCNI.com.my www.OOBEY.com

End Point The end of the Beginning www.myCNI.com.my www.OOBEY.com

Issues and Challenges

HODs unclear

HODs disagree/unsupportive

HODs not committed

Functional silos

HODs not willing to openly differentiate

Incompetent superiors/HODs

Difficult to evaluate

Aligning with Business Goals

Unsynchronized and unmonitored training and development

For Starting Up… Importance to Target Segment High Low www.myCNI.com.my www.OOBEY.com

For Starting Up… Current Brand Weak Strong www.myCNI.com.my www.OOBEY.com

For Starting Up… Philosophies Brand Position Segmentation & Targeting Structure Resources Leadership Person

For Starting Up… Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass www.myCNI.com.my www.OOBEY.com

Summary