POSITIONING YOUR ORGANISATION TO ATTRACT AND RETAIN TOP TALENT Case Study of CNI’s Journey Kenny Ong CNI Holdings Berhad

Contents: Background & Philosophy Positioning Attraction & Retention plans Issues, Mistakes & Lessons Learned For Start Ups… Summary

Background & Philosophy

Positioning

Attraction & Retention plans

Issues, Mistakes & Lessons Learned

For Start Ups…

Summary

Background & Philosophy The anchor for all decisions

Before we start… Who designs your Talent Management programs? Are you in the Talent Pool? Do you qualify? “It takes a crook to catch a crook”

Who designs your Talent Management programs?

Are you in the Talent Pool?

Do you qualify?

“It takes a crook to catch a crook”

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. Background & Philosophy Principles 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

Founders

Senior leaders

Age, Gender, Race not a barrier

Customer-focused, really focused

Flexibility vs. Discipline

Ad-hoc

Project-based

Empowerment

Young talents leaving

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

The 51.28% Theory Resign = Push + Pull > 51.28% If staff is Happy: => 0 + Pull > 51.28%

Resign = Push + Pull > 51.28%

If staff is Happy:

=> 0 + Pull > 51.28%

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.”

Philosophy “ Retention and Loyalty are useless if No Conversion is happening.” “ Retention and Loyalty are useless if No Performance is happening.”

Philosophy Loyalty is misleading… Heavy Consumption ≠ Loyalty Loyalty ≠ Heavy Consumption Good Performance ≠ Retention Retention ≠ Good Performance

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

“ 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 .”

A. Background & Philosophy 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

Equal / Fair

Happy / Productive

Hire Low, Train High

Performance vs Potential

SP drives TM

Talent Pool owned by the company

Retention / Engagement

Positioning Retain, Remove, Refuse

Positioning “ Hope is not a strategy” John Maxwell

“ Hope is not a strategy”

John Maxwell

Positioning For who? Your Offer? Key Differentiator?

For who?

Your Offer?

Key Differentiator?

Attraction & Retention Plans Target. Experience. Bingo

Targeting: Identify and Attract Who is your Talent?  : A Talent for others does not mean a Talent for you

Who is your Talent?

CNI’s Talent Profile Unwanted by big MNCs Small companies Boring Environment No Growth/Learning No MBA Passion, Values, IQ (streetsmart) Appreciate Chaos Multitask Passion to Learn

Unwanted by big MNCs

Small companies

Boring Environment

No Growth/Learning

No MBA

Passion, Values, IQ (streetsmart)

Appreciate Chaos

Multitask

Passion to Learn

Targeting: Identify and Attract Group I (Talent Pool) Identify 2 3 4 5 PERFORMANCE 2 3 4 5 POTENTIAL

Identify

Targeting: Identify and Attract 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

**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

Targeting: Identify and Attract Retention Experience Swing Ex Oppose

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

“ 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… i.e. Jobstreet Hire Strict. Refuse if possible. Look for Passion, IQ, and the “Unwanted” Who you retire determines who you attract

What’s your main Differentiator?

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

Fish where the Fish are… i.e. Jobstreet

Hire Strict. Refuse if possible.

Look for Passion, IQ, and the “Unwanted”

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

Who designs your Job Ads?

It better be Marketing

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

Not sure? Consult Jobstreet

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

Retention 1: Experience Loyalty = Experience vs. Expectations Solution Strategy: Talent Management Plan

Loyalty = Experience vs. Expectations

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

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

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

Loyalty 1: Experience Talent Management Plan 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 Development Motivation Evaluation

Talent Management Plan

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

Loyalty 2: 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

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?,

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?,

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

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

Issues, Mistakes, and Lessons If at first you don’t succeed, don’t try skydiving

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

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

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

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

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

Start Up & Summary The end of the Beginning

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 Jobstreet 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 Jobstreet conferences

Summary Big matters/Small Matters Differentiate of Die Define “Talent” No “Jerk” rule Flat Structure? The Jerk Boss All aspects Hire Strict

Big matters/Small Matters

Differentiate of Die

Define “Talent”

No “Jerk” rule

Flat Structure?

The Jerk Boss

All aspects

Hire Strict

Summary Segmented & Targeted Attraction, Retention and Succession STARS ™

Segmented & Targeted

Attraction, Retention and Succession

STARS ™

Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/