NASSCOM HR Summit 2012: Connecting the dots between innovating talent strategy & bottom line

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  • Our programs provide 100% practical skills and knowledge that can be immediately used back on the job to visibly improve performance. Overly complex or overly academic concepts find no place in our programs and services. We have assembled probably the best faculty team in Asia that includes a mix of real-world oriented former professors from top academic institutions around the world, and former practitioners from fortune 100 companies.  Most of our faculty members and coaches reside in Asia. Using their rich international experience, they create programs and services that combine the best of the East and West. In essence, we are in Asia – for Asia. We create Asia-focused content based on local and international research. Because we are a not-for-profit organization, we re-invest our earnings back into research. We are the only organization in Asia that combines Leadership Development and Corporate Governance education to provide holistic growth oriented solutions. Even though our faculty comes from the most elite academic and commercial organizations, our programs and services are priced moderately to suit the needs of most Asian organizations.  Is your organization as successful as it possibly can be within current resources? On a 1-10 scale where 10 is “at peak potential” and 1 is “way below potential” how would you rate your organization’s current performance in the marketplace today?  If you are not satisfied with your answer, you have landed at the right place. 
  • I don’t need to tell you that this issue is of importance not only to your own businesses but to India. Last quarter, India’s GDP growth fell to a 9 year low of 5.3% -- a steep drop from 9.2% last year. This is of concern to a country that knows it needs to stay on a high growth path to benefit its many people, especially those living in poverty.Today, 550 million Indians are under age 25 – India needs to grow its economy to fit those people in productively. What is so impressive is how many of those people are highly engaged in their work. There is a huge appetite for success, and a drive to find opportunity. Compare this to the US, in which 71% of workers not engaged.So the high attrition comes from a very good place: young people seeking their best opportunity. Clearly, they seek the best environment for themselves: a brand they can attach to, and actual developmentWhat will counter this paradox? A culture of leadership. And how do we define leadership? As unleashing the energy of others in the rights directions – individually and collectively.
  • Big thanks to everyone who completed our survey. We will be contacting the winners of the free seats in our LLL and EL programs next week. This is a cloud graphic of the answer to the 5th question: give us 3 words to describe leadership. If you look at the words that are most prominent, you will see that we already know what will bind our talent to us:VisionCombined wit h he ability to provide examples and role modelsAnd of course, with both empathy and courage
  • What’s the basis for my putting such emphasis on leadership? I am sure that many people in this audience would prefer a program outline for success in talent. I will get to some very concrete and practical advice in a few moments, based on examples in both software and in India, but first wanted to take a few moments to explain why we know that leadership matters as much as it does, and to outline what leadership really is.
  • A reputation for developing exceptional managers with a distinct set of talents that are uniquely geared to fulfill clients’ and employees’ expectations.  The brands – animated by the behaviors of people throughout the organization – do not happen by accident. They are sustained and reinforced, made strong and distinctive, by the leadership throughout the organization. That leadership makes clear what is needed throughout the entire value chain within, say, the entire Starbucks organization: through the standards kept by the people who select the coffee, roast the coffee, distribute the coffee, right down to the barrista who gets the customer experience down right, from the taste of the brew to flourish of the steamer to the very atmosphere in the place – the music that is playing at a certain level, the comfort of the armchairs. And that does not happen by accident, either. It takes leadership throughout the organization for all the right things to happen in the right way at the right time.Leadership creates value with employees, customers, investors, community. As we all know, that translates into sales, profits, and share price.Tell Goldman Sachs story about rejection of senior level hires. All of us -- leaders especially – exist in relationship to each other.
  • What we found: most of what constitutes leadership is the same in all leaders who build sustainable enterprises.[Explain the categories]What did our research of this group reveal?We generally rate ourselves pretty high. I hope that is justified! Line executives tended to rate themselves harder than did HR. We rate ourselves well in Strategy development and execution, which some improvements to be made in alignmentWe rate ourselves very high in Execution, with the highest scores going to managing change well, and the lowest scores going to teamwork and decision-makingWe rank ourselves lower on the left hand side:Talent management: we need work on communication, people knowing what to do and when to do it, and having today’s people in the right jobs at the right times in the right numbersHCD: we rate ourselves lowest in both understanding what our workforce needs really are, and helping people with their careersOn the personal front, we think we understand ourselves, our motivations and our passions pretty wellSo what do we take away from this? Of course our most ambitious young people will look for greener pastures. Great that we know ourselves, but do we know them? Do they think we care? And are we taking care?
  • Quotes from interviews this Spring…
  • Answer: THE TOP LEADERSHIP FIRM IN THE WORLD IS IN SOFTWARE. BUT IT IS LONLEY. IBM sends top performers to the developing world to provide business advice and action to local businesses (eg Ghana). It is about creating connection among top performers from all over, and about instilling common IBM values that transcend local issues)BY THE WAY, ALL OF THE TOP COMPANIES FOR LEADERS pull people out of jobs in which they are performing well and put them into challenging positions. And they commit to them. If the potential leader does not perform, it’s not the hatchet for her – it is a learning experience. For example, at P&G, a manger spends 10-120 of his or her time developing employees. It is expected. ICICI story:Internal talent scouts (600)Top 5,000 leader candidates identified each year. These employees go through a residential program (4 day) with speakers including the CEO, Ram Charan, etcThese identified leaders get stock options that others do not get
  • Answer: THE TOP LEADERSHIP FIRM IN THE WORLD IS IN SOFTWARE. BUT IT IS LONLEY. IBM sends top performers to the developing world to provide business advice and action to local businesses (eg Ghana). It is about creating connection among top performers from all over, and about instilling common IBM values that transcend local issues)BY THE WAY, ALL OF THE TOP COMPANIES FOR LEADERS pull people out of jobs in which they are performing well and put them into challenging positions. And they commit to them. If the potential leader does not perform, it’s not the hatchet for her – it is a learning experience. For example, at P&G, a manger spends 10-120 of his or her time developing employees. It is expected. ICICI story:Internal talent scouts (600)Top 5,000 leader candidates identified each year. These employees go through a residential program (4 day) with speakers including the CEO, Ram Charan, etcThese identified leaders get stock options that others do not get
  • Answer: THE TOP LEADERSHIP FIRM IN THE WORLD IS IN SOFTWARE. BUT IT IS LONLEY. IBM sends top performers to the developing world to provide business advice and action to local businesses (eg Ghana). It is about creating connection among top performers from all over, and about instilling common IBM values that transcend local issues)BY THE WAY, ALL OF THE TOP COMPANIES FOR LEADERS pull people out of jobs in which they are performing well and put them into challenging positions. And they commit to them. If the potential leader does not perform, it’s not the hatchet for her – it is a learning experience. For example, at P&G, a manger spends 10-120 of his or her time developing employees. It is expected. ICICI story:Internal talent scouts (600)Top 5,000 leader candidates identified each year. These employees go through a residential program (4 day) with speakers including the CEO, Ram Charan, etcThese identified leaders get stock options that others do not get
  • Many banks value technology and immediate results above all.Citigroup as a cautionary tale – very strong individuals not knitted together into a common approach to the business.
  • What did Lou do? (Sam Palmisano follows through…)As a strategist: IBM had been a technology leader since the early 1950s – key innovations in information calculation, storage, computer languages… Designed technology for airlines, hospitals, military, aerospace, banking. In the late 1960s, unbundled products, which gave birth to the multi-billion software and services industry. Created the first IBM PC. 1984-1989, volumes purchased increased 74% annual growth rate. Then: its own complexity, coupled with rise of competition and changes in customers almost did them in. By time he joins in 1993, IBM plunging off a cliff. Gerstner reversed some key strategy choices – too much to get into here – and reintegrated the firm. As an executor: took on the opt-in – opt-out culture that had grown up. In so doing, took on the essential identity of IBM’s mantra: “respect for the individual.” Why? Because he saw that it had been altered to mean: no responsibility or real accountability.As a talent manager: listened to those around him. Trusted in the information he received. Was willing to let go those who were too stuck in their ways.As a Human capital developer: looked at the workforce and said: “50% of the population is female, and 25% of each gender is not white. I am not seeing that here, which tells me that I am not getting the best that the workforce has to offer.” and set about initiatives to make sure that the most capable women and other historic minorities in the halls of power were supported in their development. Created family supports for women wit children.As a personally proficient human being: he was very clear about why he was at IBM, what he was good at, what he wasn’t. Stretched himself beyond his analytical brilliance into the people and culture side when he realized that was the most critical issue. Always willing to learn, be open.
  • The bank has a great talent screening process and a strong focus on advancing and supporting young and bright executives ahead really fast, they allow them to fail and support them through coaching and development. Originally, back in 1996-1997, Kamath did all the talent picking. This developed into an institutionalized process. Result: deep bench and reliable choices. Some error, of course, but within acceptable range – or so they believe.
  • Give examples:Senior exec (too many to mention – Lafferty, Welch, Schultz, ICICI)Talent management (70% of growth comes from the right stretch assignments. 20% from mentorship. 10% from class – quote Hindustan Unilever)Other senior sponsors (Goldman Sachs)Engage clients (Goldman Sachs)Engage employees (Nokia)Engage all possible leaders (well proven that diversity boosts innovation (London Business School). And including 25% women in top of house boost ROI by 35%, etc)
  • NASSCOM HR Summit 2012: Connecting the dots between innovating talent strategy & bottom line

    1. 1. Innovative Talent Strategies and the Bottom Line Kate Sweetman Head of Research and Curriculum Iclif Centre for Leadership and GovernanceAll Rights Reserved. The Iclif Leadership & Governance Centre 1
    2. 2. The Iclif Leadership and Governance Centre Iclif is an international, Asia-focused centre of excellence delivering practical and usable leadership and corporate governance programs which help companies to visibly improve their business performance.All Rights Reserved. The Iclif Leadership & Governance Centre
    3. 3. Indian business culture paradox: High levels of individual engagement coupled with low productivity and high attritionInnovative Talent Strategies that work in software and in India are needed to protect our bottom lines All Rights Reserved. The Iclif Leadership & Governance Centre 3
    4. 4. All Rights Reserved. The Iclif Leadership & Governance Centre 4
    5. 5. Global Research Plus, our experience in Software Services firms as well as other companies based in:  US  Europe  Asia  Middle East  IndiaAll Rights Reserved. The Iclif Leadership & Governance Centre
    6. 6. Why does Leadership Matter?• Leadership drives business results. Clear and consistent leadership provides superior returns• Leadership doesn’t just happen. In TCFL, 85% of the senior leaders place a top priority on leadership development (v. 45% of other competing companies)• Leaders come from within. Companies everywhere tend to reject senior level hires (politics, culture, and new exec’s lack of internal knowledge and network) How do we spend our time and attention as leaders?All Rights Reserved. The Iclif Leadership & Governance Centre
    7. 7. What do all effective leaders have in common? Source: The Leadership Code All Rights Reserved. The Iclif Leadership & Governance Centre
    8. 8. What I heard in India 2011:Do any of the observations apply to your firm? “Our new hires have the technical skills. They need to build depth in relationship skills with clients and peers, leading and mentoring others…” “Our people need to learn to work together, and not just throw client needs across the transom. Our sales group in North America and our development teams in India barely interact.” “It is much harder to teach the soft skills than the technical skills…” All Rights Reserved. The Iclif Leadership & Governance Centre
    9. 9. Pop Quiz: How Many of the Global TopCompanies for Leadership are in Software? Globally: 1. IBM 2. P&G 3. General Mills 4. McKinsey 5. ICICI Bank (India) 6. McDonald’s 7. General Electric 8. Titan Cement 9. China Mobile Comm Corp 10. Hindustan Unilever 11. Natura Cosmetics 12. Colgate Palmolive 13. TNT (Australia) 14. Deere & Company 15. Whirlpool 16. 3M 17. Cargill 18. Olam (Singapore) 19. Eli Lilly 20. PepsiCoAll Rights Reserved. The Iclif Leadership & Governance Centre
    10. 10. Pop Quiz: How Many of the Global Top Companies for Leadership are in India? Globally: 1. IBM 2. P&G 3. General Mills 4. McKinsey 5. ICICI Bank (India) 6. McDonald’s 7. General Electric 8. Titan Cement 9. China Mobile Comm Corp 10. Hindustan Unilever (India) 11. Natura Cosmetics 12. Colgate Palmolive 13. TNT (Australia) 14. Deere & Company 15. Whirlpool 16. 3M 17. Cargill 18. Olam (Singapore) 19. Eli Lilly 20. PepsiCoAll Rights Reserved. The Iclif Leadership & Governance Centre
    11. 11. Pop Quiz: How Many of Top Companies for Leadership in Asia are in India?Asia:1. ICICI Bank (India)2. China Mobile Communications (China)3. TCL (China)4. Hindustan Unilever (India)5. Olam (Singapore)6. Aditya Birla Group (India)7. Lion Nathan (Australia)8. Infosys (India)9. New Zealand Refining (NZ)10. Wipro (India)11. Trustpower (New Zealand)12. British American Tobacco (Malaysia)All Rights Reserved. The Iclif Leadership & Governance Centre
    12. 12. Both IBM and ICICI value… Technology AND Culture of leadership (not just individual leaders) All Rights Reserved. The Iclif Leadership & Governance Centre
    13. 13. Leadership people can believe in: IBMAll Rights Reserved. The Iclif Leadership & Governance Centre
    14. 14. Leaders create culture“I came to see, in my time at IBM, that culture isn’t just one aspect of the game -- it is the game. In the end, the organization is nothing more than the collective capacity of the organization to create value. Vision, strategy, marketing, financial management – any management system, in fact – can set you on the right path and can carry you for a while. But no enterprise…will succeed over the long haul if [the right cultural] elements aren’t part of its DNA.” Louis GerstnerAll Rights Reserved. The Iclif Leadership & Governance Centre
    15. 15. IBM’s focus for developing leaders in 2012Technology: on-line learning communities, searchabledatabases, job relevant information available in networkedmobile devicesLeaders develop leaders: Senior leaders actively engage inselecting, developing , assessing peers as well as junior staffCareer guidance: employees can map their own growth incoordination with others. Development surveys ask themwhat they believe that they need to learn (“pull”) Results: excellent financial returns AND very high engagement and very low turnover – a sustainable model All Rights Reserved. The Iclif Leadership & Governance Centre
    16. 16. ICICI: Leaders create culture“ICICI had a problem of atrophy, and we had to break it ifwe were to survive. In 1996-1997, we had this wonderfulsituation where the smartest graduates from top B-schoolswould come to ICICI and atrophy within a year.”  KV Kamath, ICICI Bank case study, HBS• Tied Talent strategy to company strategy (performance evaluation system)• Tied Talent strategy to Technology strategy (90 day rule)• Specific Leadership Development strategy ICICI’s Global Expansion, Tarun Khanna and Ramana NandaAll Rights Reserved. The Iclif Leadership & Governance Centre
    17. 17. ICICI Leadership Development Strategy: Meritocracy with Corporate Commitment• Focus: Spot, groom and deploy leaders in-house (600 searchers)• Treat best b-school grads as entrepreneurs• Star system (A, B, C) with senior management attention  360 degree assessment  7-9 member skip level assessment panels  All assessors are top talent• Allow for failure; provide levels of backstops• Training:  Experience (eg report to board)  Classroom (eg case studies, etc) 17 All Rights Reserved. The Iclif Leadership & Governance Centre
    18. 18. Three Things Top Leadership Can Do• Energize yourself as a Leader (self-leadership)• Enlist Co-Leaders (team leadership)• Galvanize Large Numbers (enterprise leadership)All Rights Reserved. The Iclif Leadership & Governance Centre
    19. 19. From High Levels Individual Engagement in the Work toHigh Levels of Organizational Engagement in the Individual 1. Engage senior leadership: values start here 2. Engage Talent organization: 70/20/10 3. Engage other senior level sponsors: mentorship and storytelling 4. Engage clients: connect to their perspective 5. Engage employees: they matter most of all 6. Engage “others”: expand notion of who can be a leader All Rights Reserved. The Iclif Leadership & Governance Centre
    20. 20. Support our research? adeline@iclif.org or kate@iclif.org All Rights Reserved. The Iclif Leadership & Governance Centre 20

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