Siic War For Talent Speech Final

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Attracting and retaining talent is now a strategic imperative at the board-level of insurance companies. Competition for talent and generational changes as to expectations and values within the work place are contended and affect recruitment objectives.

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  • ABSTRACT: Global Forces 2020 is a Knowledge Investment Project sponsored jointly by the Strategy Practice and The McKinsey Global Institute. The initiative seeks to develop insights into the major global trends that are likely to impact the global business environment over the next 10-15 years. These trends, such as falling birthrates, acceleration of technological innovation, global economic integration, and increasing affluence in developing nations have broad, lasting implications for all clients. Through external and internal expert interviews, research synthesis, macro and microeconomic analysis, and proprietary surveys, Global Forces 2020 has developed a unique, holistic view of these trends that can be customized into senior client workshops for most industries and regions. As part of the Global Forces 2020 effort, The Global Forces Executive Opinion Survey is an annual, Internet-based survey of senior executives around the world. The survey captures executives' beliefs about emerging global trends, the impact on their businesses, their growth opportunities and strategies, and their corporate challenges and constraints to growth. The inaugural survey, conducted in April 2005, elicited more than 9,300 responses, with almost 50 percent of the responses coming from board members, chairs, CEO's, or presidents of companies.
  • Siic War For Talent Speech Final

    1. 1. Winning the War for Talent: A Strategic Imperative for the Insurance Industry International Insurance Conference @ Singapore, 2008 © Copyright 2008 Callahan Associates. Confidential. Not for further reproduction or distribution. Ms Sara Yik Managing Partner, Callahan Associates
    2. 2. INTENSIFYING COMPETITION FOR TALENT IS THE #1 GLOBAL BUSINESS TRENDS Competition for talent will intensify, become more global Customers of economic activity will shift globally, regionally Technological connectivity will increase Demand for natural resources will grow, as will strain on environment Consumer landscape will change, expand significantly Role, behavior of business will come under increasing scrutiny Ubiquitous access to information will change economics of knowledge Population in developed economies will age Which of the following trends will have the most effect on your business over the next 3 years? % of respondents who chose given trend as 1 of top 3 (n = 1,317) Source: McKinsey Quarterly Global Survey 2007, based on more than 1,317 respondents globally (80% senior executives, 30% CEOs or CFOs) New global industry structures will emerge (e.g., private equity, networked organizations) Public sector activities will balloon
    3. 3. TOP 10 STRATEGIC BUSINESS RISKS FOR THE INSURANCE INDUSTRY Source: Ernst & Young Strategic Business Risk: Insurance 2008 Catastrophic Events Channel distribution Climate Change Demographic shifts in core markets Emerging markets Geopolitical or macroeconomic shocks Integration of technology with operations and strategy Legal risk Regulatory intervention Securities markets
    4. 4. STRATEGIC BUSINESS RISKS FOR THE INSURANCE INDUSTRY Source: Ernst & Young Strategic Business Risk: Insurance 2008, based on interviews with more than 70 industry analysts from around the world and representatives from over 20 disciplines shaping the business environment (e.g., law, finance, the sciences, business strategy) Legal risk Geopolitical or macroeconomic shocks Integration of technology with operations and strategy Catastrophic events Climate change Demographic shifts in core markets Securities markets Regulatory intervention Emerging markets Channel distribution Macro Threats Operational Threats Sector Threats
    5. 5. ‘BELOW THE RADAR’ RISKS THAT HAVE THE POTENTIAL TO EMERGE ONTO THE TOP 10 LIST WITHIN THE NEXT 5 YEARS Source: Ernst & Young Strategic Business Risk: Insurance 2008, based on interviews with more than 70 industry analysts from around the world and representatives from over 20 disciplines shaping the business environment (e.g., law, finance, the sciences, business strategy) 1. Over-Reliance on Model-based Risk Management 2. Threats to the Reputation of the Industry 3. Losing the War for Talent 4. Increasing Corporate Exposure to Global Regulatory Heterogeneity 5. Possible Emergence of Entirely New Risks Legal risk Geopolitical or macroeconomic shocks Integration of technology with operations and strategy Catastrophic events Climate change Demographic shifts in core markets Securities markets Regulatory intervention Emerging markets Channel distribution
    6. 6. LOOKING AHEAD, WHAT WILL BE THE IMPLICATIONS ON THE DEMAND FOR LEADERSHIP AND TALENT? <ul><li>Strategic thinking </li></ul><ul><li>Adaptable and resilient </li></ul><ul><li>Entrepreneurial </li></ul><ul><li>Decisive amidst an environment of uncertainty </li></ul><ul><li>Multi-cultural, able to manage in an environment of diversity </li></ul><ul><li>Build a strong talent bench </li></ul>LEADERSHIP SPECIALIZED TALENT <ul><li>Develop new skills to assess, predict and price new risks </li></ul><ul><li>Adapt to cultural contexts of emerging markets </li></ul><ul><li>Address competition from new players and blended products </li></ul><ul><li>Leverage new distribution channels effectively </li></ul>
    7. 7. THE TALENT IMPERATIVE % of respondents (n = 1,317) Source: McKinsey Quarterly Global Survey 2007, based on more than 1,317 respondents globally (80% senior executives, 30% CEOs or CFOs) Does your organization currently have the right people in place to lead the changes necessary to meet the challenges you face? No Don’t know Yes If not, where primarily will your company find the necessary people? If yes, what is the current status of these people? Externally Don’t know Internally Have potential but will need to develop new skills Don’t know Have right skills but in wrong position in organization
    8. 8. WHAT ABOUT THE FUTURE SUPPLY OF LEADERS? Source: AC Nielsen “Baby Boomer Segmentation” Fall/Winter 2006 <ul><li>‘ Baby Boomers’ (1946–1964) </li></ul><ul><li>Biggest group (~77 m) </li></ul><ul><li>Oldest are approaching retirement </li></ul><ul><li>‘ Gen X’ (1965–1981) </li></ul><ul><li>Currently at mid-management levels </li></ul><ul><li>Enough numbers, ready to step up? </li></ul><ul><li>‘ Gen Y’ (1982–1999) </li></ul><ul><li>Starting to enter the workforce </li></ul><ul><li>How to attract, develop and retain them? </li></ul>
    9. 9. THE NEW ‘GENERATION Y’ Source: Fortune “You Raised Them, Now Manage Them”, May 28, 2007; “Generation Y @ Work”, Straits Times, May 10, 2008; team analysis WHAT ARE THEY LIKE? <ul><li>‘ High maintenance’ – self-assured, high expectations, questioning </li></ul><ul><li>Multi-tasking </li></ul><ul><li>Technology-savvy </li></ul><ul><li>High-performing </li></ul><ul><li>Lack of company loyalty </li></ul><ul><li>Importance of work-life balance </li></ul>HOW TO GET THE BEST FROM THEM? <ul><li>Set concrete career goals and show how to reach them </li></ul><ul><li>Challenge them – with responsibilities, meaningful work and frequent change – and give feedback </li></ul><ul><li>Seek their input and involvement </li></ul><ul><li>Provide a fun, employee-centered workplace where they can build personal connections </li></ul><ul><li>Provide flexibility and good work-life balance </li></ul>
    10. 10. THE TOP COMPANIES FOR LEADERS 2007 Source: “The Top Companies for Leaders 2007”, Fortune, 1 October 2007 <ul><li>General Electric </li></ul><ul><li>Proctor & Gamble </li></ul><ul><li>Nokia </li></ul><ul><li>Hindustan Unilever </li></ul><ul><li>Capital One Financial </li></ul><ul><li>General Mills </li></ul><ul><li>McKinsey & Company </li></ul><ul><li>IBM </li></ul><ul><li>BBVA </li></ul><ul><li>Infosys Technologies </li></ul><ul><li>Inditex, S.A. </li></ul><ul><li>Medtronics, Inc </li></ul><ul><li>Eli Lilly and Company </li></ul><ul><li>McDonald’s Corporation </li></ul><ul><li>Whirlpool Corporation </li></ul><ul><li>Natura Cosmeticos </li></ul><ul><li>GlaxoSmithKline </li></ul><ul><li>Australia and New Zealand Banking Group </li></ul><ul><li>ICICI Bank </li></ul><ul><li>WIPRO </li></ul>
    11. 11. WHAT ARE SOME OF THE BEST COMPANIES DOING TO STAY AHEAD OF THE WAR FOR TALENT? Source: “Leader Machines”, Fortune magazine, 1 October 2007, McKinsey’s War For Talent research, team analysis Y Y 1 Make talent a top management priority 2 Identify and Attract Great Talent <ul><li>Hold line leaders accountable to inspire and develop talent </li></ul><ul><li>Identify your target talent pool and where to get them </li></ul><ul><li>Hold rigorous performance reviews at every level </li></ul><ul><li>Make leadership development part of the culture and ‘way of life’ </li></ul><ul><li>HR has strong capabilities to play the role of a credible and effective business partner to the line </li></ul><ul><li>Develop and deliver a compelling value proposition to your target talent pool </li></ul>
    12. 12. WHAT ARE SOME OF THE BEST COMPANIES DOING TO STAY AHEAD OF THE WAR FOR TALENT? Source: Press searches, team analysis Y Y Y 3 Develop Talent to Fullest Potential <ul><li>Identify potential leaders early on </li></ul><ul><li>Refresh internal talent pool, even at senior levels </li></ul><ul><li>Put people through a series of challenging and developmental ‘stretch’ assignments </li></ul><ul><li>Provide ongoing mentoring, feedback and coaching </li></ul><ul><li>Invest money in leadership programs (for individuals and teams) </li></ul><ul><li>Encourage community activism </li></ul>
    13. 13. LOTS OF DIFFERENT WAYS TO GET STARTED…. JUST DO!

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