The Challenge of Global Talent Management

1. The Challenge of Global Talent Management Richard Magjuka, Chair of Kelley Direct and Global Executive Degree Programs, Kelley School of Business, Indiana University

2. Talent Management – Overview of a Core Model (from the “Talent Solution by Edward L. Gubman) Linking Strategy and People Customer Value Proposition Unique Capabilitiesand Competencies Distinctive People Practices

3. Who Are You? Understand Your Value Proposition • “Products Companies” • Breakthrough innovation • Speed to market • Big risks/big rewards • “Operations Companies” • Tight value definition • Process improvement/cost reduction • Rigorous measurement and accountability • “Customer-Intimate Companies” • Tailored solutions/fabulous service • Deep commitment to customers • Responsiveness and flexibility

4. Strategic Styles and Business Capabilities Strategic Core Each style demands a distinctive core capability Companies Capabilities Styles Products Apple, Bloomingdale’s, Constantinnovation Kellogg’s, Maytag, Merck, Nike, Sony, Tiffany’s, W.L. Gore Operations Dell, Cargill, Consistent McDonald’s, Southwest Airlines, application Target Stores, Wal-Mart, Whirlpool Customers Four Seasons, Home Depot, IBM, In-depth Johnson Controls, Nordstrom relationshipbuilding Adapted from The Discipline of Market Leaders by Treacy and Wiersema

5. Strategic StyleWorkforce Strategy • Compete through teams that deliver high value, lower cost, reliable products and services • Emphasize motivation and esprit de corps • Make sure everyone plays bythe rules • Measure everything, reward whatyou measure • Build a continuous improvement environment Operations

6. Strategic Style Workforce Strategy • Satisfy employees so they will satisfy customers • Pick people with a service mindset • Rely on values to shape culture and messages • Give people autonomy to meet customer needs • Promote service as the highest order activity Customers

7. Strategic Style Workforce Strategy • Provide a positive, comfortable, resource-rich environment that allows people to create • Don’t distract people with HR policies or concerns about management • Take care of a lot of needs through outstanding compensation, benefits, and training • Remove organizational barriers to creativity • Don’t differentiate rewards much among individuals Products

8. The Core Model meets Global Business • For global businesses, the core model of talent development still holds true. There are a few complicating factors, however: • How to tie a talent development process that is typically regional in scope into a consistent global pipeline; • How to develop a global value-base and ethic; • How to identify skills and abilities that are a difference in “kind,” not a difference of degree when transferred to a global setting; and • How to develop a broader concept of employee networks that go beyond the notion of “war for talent.”

9. Global Talent Development AdditionalDemands of Global Leadership 1. Cultural Intelligence, 2. Managing Intergroup Differences, 3. Competing in Distinctive Markets, 4. Understanding International Financial Markets, 5. Assessing Global Risks, 6. Managing Talent Networks.

10. Global Talent Management • A Few Thoughts: • The Core Model that outlines how to develop talent is not changed in a global context; it is expanded. • Globalization challenges companies to adapt continuously and to ensure that employees are learning new fields and new skills. • Human capital represents a global asset that needs both global and local development. A critical issue is to determine the proper mix of local and global factors and to monitor how this mix changes around the world.

11. Global Talent Management • A Few Thoughts, continued: • Emphasis on adaptation, growth and change means that employees will have to be given more control over their training and career direction. • Yet, there are skills (such as risk management) which take on a qualitatively different meaning globally and which companies must provide the impetus for its adoption in a company. • Finally, career mobility has to be re-conceptualized. Yes, acquisition and retention remains critical. Still, in many labor markets, there will be a high voluntary turnover rate. Companies will increasingly view employees who leave as a resource to be cultivated and a process to be managed.

12. Global Talent Management • A few examples of interest to build global talent pipeline: • Enhanced Transition Services, • Social Entrepreneurship (or Corporate Service Corp) Networks, • A-Connect (and University or Training Partnerships), and • 2x2x2x2X2 (Two functions, two markets, two regions and two business units for at least two years): Job rotation to the next level.

13. Graduate Business Education: New Role and Opportunity More than ever, elite business schools are willing to globally “expand” with their corporate partners. * Educational Alliances and Networks, * Vast and Diverse Intellectual Resources, * Distance Learning and Social Media Technologies. * While recognizing the constraints of the current economic environment.

14. Education, continued Illustrative Example from Kelley: Ingersoll Rand (IR) * Residential Teaching in US, China and India. * Asynchronous online instruction for global IR cohorts. * Supplementary instruction in Western, Indian and Chinese culture. * IR Execs provide mentoring and coaching. * Capstone Internal Consulting Project co-taught by EVP at IR and a Kelley Faculty.

15. Global Talent Management • Questions ???