1. Mass Career Customization
One Size DOESN’T Fit All
Zilele BIZ, 2010
Innovation Day
Doina Patrubani
Director in Charge
Deloitte Consultanta

2. “They always say time changes
things, but you actually have to
change them yourself.”
~ Andy Warhol

3. © 2010 Deloitte Romania
The Convergence of Key Trends is Dramatically Changing
the Workforce.
Workforce in 2007
and beyond
Changing expectations
of men
Evolving expectations
of Gen X and Gen Y
Increasing number of
women
Increasing impact of
technology
Changing family
structures
Shrinking pool of
skilled labour
Workforce trends convergence
Key Trends Key Trends

4. The workforce has changed,
but the workplace has not.

5. © 2010 Deloitte Romania
A: Flexible Work Arrangements (FWAs)
Flextime
Reduced Hours /
Part-Time
Compressed
Work Week
Banking of Hours
Leaves / Sabbaticals Job Sharing
Telework /
Telecommuting
Gradual
Retirement
Q: What is today’s response to this misalignment?

6. © 2010 Deloitte Romania
FWAs Are Not the Solution to the Structural Shift in the
Workforce
FWAs are…
• One-off point solutions that do not scale
• Generally negotiated in a state of crisis
• Not integrated into nor supported by Talent management processes and
procedures
• Too often focused exclusively on hours and work location at a specific point in
time
• Not designed to address how careers unfold over time nor address other aspects
of a career including pace of progression, assignments, and role
• Viewed as exceptions or accommodations to a seemingly accepted standard.

7. © 2010 Deloitte Romania
Mass Product Customization
is a Significant Part of Today’s Consumer Marketplace.
If you can
customize your
coffee, car and
sneakers,
why not your
career?

8. © 2010 Deloitte Romania
Mass Career Customization
Delivers Similar Benefits as Mass Product Customization.
Increased loyalty from greater connections
with customers
Increased loyalty from greater
connections with employees
Reduced supply chain costs
Decreased workforce
acquisition and retention costs
Increased profitability
from value pricing
Increased productivity through
greater satisfaction and
career-life fit
Mass Customization Shared Benefits
Mass Product Customization Mass Career Customization

9. © 2010 Deloitte Romania
Basic Tenets of Mass Career Customization
 Recognizes that careers ebb and flow
over time
 Is more dynamic and adaptable to both
individual and organizational needs
 Enables choices
 Makes trade-offs more explicit
 Provides greater transparency and
therefore trust with employees
 Institutionalizes framework/process
 Extends the bounds and consistency of
what’s acceptable

10. © 2010 Deloitte Romania
The MCC Profile Dimensions Make It Possible to Depict
Career-Life Choices and Associated Trade-Offs
Pace
Options relating to the rate of career
progression
Workload
Choices relating to the quantity of
work output
Location/Schedule
Options for when and where work is
performed
Role
Choices in position and
responsibilities
The Four Dimensions—and
Interrelationships of—MCC

11. © 2010 Deloitte Romania
MCC Recognizes that an Individual’s Career Engagement
Changes over Time…Creating a Sine Wave of Sorts
Career years: 0-3
Post MBA
Career years: 4-7
Changed industries
Career years: 8-14
Growing family
Career years: 15+
Mid-Career

12. © 2010 Deloitte Romania
A: No. MCC is already going on.
Q: Is MCC a radical departure from what we do today?
MCC organizes, structures, and institutionalizes the best
of what already works today. Custom careers become
“business as usual”— just more consistently and
equitably.

13. © 2010 Deloitte Romania
A: The corporate ladder is morphing into a corporate lattice TM
model. MCC enables a lattice organization.
Q: Stepping back, what’s really going on?
• Traditional hierarchy
• Singular path upward
• Work-versus-life
balance
• Fits more traditional
family structure
• Assumes workers’
need remain
consistent over time
• More conducive to
evolving matrix
structure
• Multiple paths upward
• Move faster, slower,
change directors
• Career-life fit
• Adjusts as workers’
need change over
time
Upward
momentum
Integrated
with talent
management
system
Ladder versus Lattice
Corporate Ladder Corporate Lattice

14. Benefits of MCC

15. © 2010 Deloitte Romania
MCC Value Proposition
Successful implementation of MCC provides the individual and organization with
long term benefits.
• Provides option value for life’s “what
ifs”
− Much like a financial option, MCC
provides an “insurance” value to
individuals
− Engenders loyalty to employer as a
result
• Leads to better decisions for the
individual due to greater transparency
around career choices
− Honesty regarding trade-offs for
MCC choices leads to better
calibrated expectations
Individual Organization
• Differentiates your organization’s
employment brand
• Develops strategic advantage
• Provides insight for improved
succession planning and
performance management
• Provides framework for more
accurate and complete HR planning
and forecasting
• Supports managers by providing
consistency and transparency

16. © 2010 Deloitte Romania
MCC Provides A Strong Linkage With
Key HR and Strategic Initiatives.
MCC should be integrated with other HR initiatives to create a holistic talent
management program.
MCC-Enabled
Career-Life Fit
Workforce
Planning
Performance
Management
Professional
Development
Succession
Management
Recruiting
and Staffing
Mobility
Initiatives
Organization
Design/
Career
Pathing
Total
Rewards

17. What do I really want and
what do I actually pay for?

18. 18
Strategy and remuneration
We aim at… We pay for…
Long-term growth Quarterly results
Teamwork Individual efforts
Ambitious targets that require sustain
efforts
Numbers’ achievement – “Let’s make
the plan!”
Proper structure, adequate number of
employees, balanced budget.
Budget and staff as large as possible
Engagement in view of overall quality Delivery by deadline, even with flaws
Honesty and courage; bad news should
be broken in time so we can do
something about it.
Good news only; unconditional
agreement with the direct superior, may
he/she be right or not.
Efficiency and performance Long hours spent at work.
Ideas and contribution in generating
value.
Seniority.
© 2010 Deloitte Romania

19. 19
So why the incoherence?
Causes Details
A fascination for the
“criterion of objectivity”
Most managers try to set up simple and easy-to-evaluate
standards that help at measuring and rewarding
performance. This is possible in departments where work is
highly predictable. However, in most departments we might
witness an undesired shift of objectives.
Placing too much value on
extremely visible/noticeable
behaviors
Some activities are extremely visible, others less visible,
therefore the challenge. Teamwork and creativity are
behaviors difficult to reward, as they are difficult to notice
and measure.
Hipocrisy A certain behavior is encouraged, although it is not really
desired.
Excessive weight of ethics
and equity in the detriment
of efficiency
Bonuses are granted to everybody in almost equal amounts,
which at the end of the day end up de-motivating the best
performers.
© 2010 Deloitte Romania

20. 20
© 2009 Deloitte Consultanta SRL. Toate drepturile rezervate
• Managers complaining that staff is not motivated should ask themselves whether the
remunerations systems in place are not rewarding completely different behaviors than
the ones they really expect.
• A first step is the honest question: What are the behaviors that we actually reward now?
• The answer might be surprising. Many organizations may realize that they are not
paying for what they thought. Many undesired behaviors are caused by an inadequate
rewarding system.
• A formal rewarding/remuneration system should generate and encourage the desired
behaviors, which are perceived as the most efficient in ensuring the economic health of
the organization. Unfortunately, remuneration often becomes an obstacle that must be
overcome in order to generate these behaviors.
A new remuneration system
Changing the remuneration system
© 2010 Deloitte Romania

21. © 2010 Deloitte Central Europe
Deloitte selected projects
Forecasted savings achieved on remuneration system change
Leading food manufacturing
company
Large energy distribution company
Source: Deloitte calculations
• Scenarios depicted below emphasize the forecasted savings achieved by selected companies in
Romania assisted by Deloitte in implementing a new remuneration system.
• The projected savings for a five years time span by implementing a new remuneration system are
calculated against the existing remuneration system (i.e. as percentage from the projected personnel
costs incurred by maintaining the existing remuneration system).
Year 1 Year 2 Year 3 Year 4 Year 5
Savings 0.5% 1.1% 1.9% 3.6% 6.2%
Year 1 Year 2 Year 3 Year 4 Year 5
Savings 0.3% 1.7% 2.4% 3.3% 4.6%
21
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
2,300,000.0
2,400,000.0
2,500,000.0
2,600,000.0
2,700,000.0
2,800,000.0
2,900,000.0
3,000,000.0
3,100,000.0
Total Personnel Cost
Existing remuneration system New remuneration system
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
80,000,000.0
85,000,000.0
90,000,000.0
95,000,000.0
100,000,000.0
105,000,000.0
110,000,000.0
115,000,000.0
120,000,000.0
125,000,000.0
Total Personnel Cost
Existing remuneration system New remuneration system
© 2010 Deloitte Romania

22. © 2010 Deloitte Romania
© 2010 Deloitte Romania
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK
private company limited by guarantee, and its network of member firms, each
of which is a legally separate and independent entity. Please see
www.deloitte.com/ro/about for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms.