Critical Success Factors: Make your Saudisation Programme work

1. Critical Success Factors:Make your Saudisation Programme work Professor William Scott-Jackson 0044 7785 110910 wsj@cahrr.org وسهلااهلا

2. Research • Survey of GCC Nationals and ex-pats • In-depth interviews with over 40 major ‘best practice’ GCC organisations • Public and private • Locally owned, Western and Asian • Action Workshop and focus group with 20 major GCC employers

3. Talent in the Middle East • Infosys recruiting US graduates to study in India then work in Infosys back office in US. • Tata outsourcing to back office in Mexico; Wipro to China, Saudi and US; Infosys to Poland and Thailand. • Company in the US pays an Indian Vendor 7000 miles away to supply Mexican workers based 150 miles south of the US border (New York Times 29th Sept) “The Middle East is losing out in the global battle to produce and attract the world's most talented workers,” Global Talent Index 2007 Skills shortages limiting companies’ ability to grow . (Gulf Talent 2007) Increasing challenge for GCC employers to attract what has been the main source of affordable talent, as gap narrows between Indian and Gulf packages. Nationalisation – particularly building strategic capabilities and leadership UAE Investment firms facing influx of clients but a shortage of professionals to serve them. (Moss Adams 2007) Underemployment, particularly among young men Women’s increasing success in workplace

4. Main conclusions: Best Practice NOT BEST PRACTICE! BEST PRACTICE Meeting quotas Maximising a strategic resource Recruitment Talent Management Placing nationals in ‘easy’ roles Identify strategic capabilities and plan Career Fairs etc Create ‘great place to work’ Start early (school) and with families Focus on young adults Target Graduates And older, less qualified, women etc Compete for nationals Collaborate by sector Government, Education, Society Get on with it!

5. Best Practice: Major conclusion “Talent Management” not quotas “Talent Management” not quotas

6. Saudisation as Talent Management Talent Management: Developing & Deploying Talent Talent Strategy & Planning Retaining Talent Acquiring Talent Summary and Key action areas

7. Competing or complementary employmentand Demographics Competing jobs are those that are equally suitable and desirable for nationals and ex-pats. Complementary roles are those which are specifically suitable or desirable to be filled by nationals rather than ex-pats OR specifically suitable or desirable to be filled by ex-pats rather than nationals Demographics – if the national plan produces a low % of nationals (as in the UAE) then most jobs can be complementary as we need to be extremely choosy about the jobs our scarce nationals do. If nationals are a high proportion then many jobs will be competing and we must ensure that nationals are well-equipped to compete. Mistake is to act as if jobs are competing when in fact they are complementary.

8. DemographicsNationals as small proportion of workforce Leadership roles Specialist roles (sector e.g. oil or function e.g. HR)

9. DemographicsNationals as small proportion of workforce Leadership roles Specialist roles (sector e.g. oil or function e.g. HR) Mostly talent management problem: Identity and develop strategic capabilities

10. DemographicsNationals as large proportion of workforce Leadership roles Specialist roles (sector e.g. oil or function e.g. HR)

11. DemographicsNationals as large proportion of workforce Leadership roles Specialist roles (sector e.g. oil or function e.g. HR) Mostly talent management problem But also employment, quotas and ex-pat restrictions

12. High-Precision Strategic NationalisationResourced-based view of the firm The competitive market E.g. innovative capacity, ability to exploit knowledge Negotiating ability Openness to other cultures Gulf Arab mgmt style Religion/Culture Firm X Competitive Advantage Firm C Firm A Firm B Firm X Firm D • The ‘X’ factor: A differentiating capability • Valuable (in relation to the market) • Rare • Hard to imitate • Hard to substitute • Owned by you Barney, J.B. and Clark, D.N. (2007) Resource-Based Theory: Creating and Sustaining Competitive Advantage. Oxford University Press, Oxford

13. Linking Strategic intent and capability measures Organisation Strategic Intent Differentiating capability High customer retention and recommendation through exceptional customer service Frontline staff that are friendlier and more helpful than anyone else’s Global Bank ‘... extend its reach into new technologies, services and markets to create opportunities for our customers’ Leading technical innovators, top international marketing expertise (retention) Telecomms Dubai Malls Group World leading expertise in Mall design and customer psychology Rapid expansion through providing retailers with more ‘footfall’ ... that citizens are able to benefit from the country's increasing wealth Exceptional percentage of population as leaders– ‘ready to manage’ The United Arab Emirates

14. The process 1. Identify strategic intent (goals/imperatives) Senior Management workshop to engage, get the facts and create ownership 2. Identify key people capabilities to achieve strategic intent 3. Identify drivers to maximise and differentiate each capability In-depth research to identify unique drivers (e.g. of ‘friendliness’) 4. Identify key roles by strategic value 5. Programme to develop and measure key capabilities and key roles Implementation Project 6. Metrics to show investment and improvement over time - ROI

15. Developing and deploying talent Talent Management: the threat and the opportunity Developing & Deploying Talent Talent Strategy & Planning Retaining Talent Acquiring Talent Summary and Key action areas

16. The Development Process Talent strategy Define requirements Role Profile Competencies qualifications experience know-how personal skills know-who values Organisation’s talent needs for the future Target role Process to plan and monitor progress Process for dialogue Gap to be closed through development Dialogue between organisation and individual, matching company needs and individual aspirations Assess/agree competencies Individual Profile Competencies qualifications experience know-how personal skills know-who values Individual’s aspirations for the future Current role Identify and share aspirations

17. Scott-Jackson, W.B. Mayo, A. & Rushent, C (in prep) World-Class Learning and Development: the major success factors,

18. Methods of delivering learning: Impact on knowledge retention Method Retention • Lecture 5% • Reading 10% • Audio Visual 20% • Demonstration 30% • Discussion Group 50% • Practice by Doing 75% • Teaching others 90% Most widely used method Least used Never used (except informally?) Jennings, C. (2007) Why ‘stand and deliver’ s never enough, Presentation to the IITT Conference June 2007.

19. Part 4: Retaining Talent Talent Management: the threat and the opportunity Developing & Deploying Talent Talent Strategy & Planning Retaining Talent Acquiring Talent Summary and Key action areas

20. Global Bank 2007 Well done! We’ve cut staff turnover from 16% per year to only 10%! … We’ve kept 12% more of our worst people and lost 6% more of our best people! Modified from Harvard Business Review Oct 2007

21. Retention: A differentiating strategic capability Survey of 500 Global organisations • 68% - retaining talent is ‘far more’ important than hiring • Over 50% altered salaries, bonuses or stock options to try and retain talent • Only 27% tried to provide employees with advancement opportunities Organizations continue to struggle with retention because they rely on salary increases and bonuses to prevent turnover. • Why doesn’t this work? * Accenture: "The High Performance Workforce: Separating the Digital Economy's Winners from Losers”

22. Dimensions of Staff Turnover: • Involuntary - • organisation decides not to retain the staff member (or retain). • Voluntary - • individual decides to leave the organisation (or stay). • High Value or Low value capability • Short term and long term • Risk of quitting POINT: If someone of low value to the organisation is at high risk of leaving voluntarily - encourage and celebrate!

23. Some turnover is OK! Voluntary Involuntary Type B Type A Inadequate selection for dismissal etc Retention Problem High Value to the organisation Type D Type C Career development moves, management coaching etc Dismissal, etc Low

24. How to reduce turnover:The Quitting Process

25. Thoughts Intention to Intention to Action quit of quitting search quit or stay or stay Probability of Perception of Job offer at alternative/ job market vs same/more attractive internal money employment Type B Turnover - When to attack Stage Job Satisfaction Self-esteem Management Main factors

26. Plan/process to increase retention of the best people? Identify high value groups/individuals Regular confidential ‘Insight’ survey/interview to identify high risk groups/individuals Managers agree individual and group actions Actions and monitor via survey

27. Summary – Targeted Retention: resourcing at its best! • Retention much more cost effective than replacement • Retention must be targeted • Aim to minimise involuntary quitting (low or high value) • Take control/influence over voluntary staying and quitting • Need information – segment the internal market • Who is valuable? • Who is at risk? • What they think • What they want • Need deliberate highly targeted action - Marketing • Demonstrable, significant savings possible!

28. Part 5: Meeting the Global challenge for TalentAcquiring Talent Talent Management: the threat and the opportunity Developing & Deploying Talent Talent Strategy & Planning Retaining Talent Acquiring Talent Summary and Key action areas

29. Global conglomerate 2003 PANIC!! We need a new Group Finance Director Urgently!! Call Oxford Strategic Resourcing to find us one quick!! … Did he die suddenly? No – He retired … What about Abdullah in your Metals Division? … Who? Well … who do you really respect in the market? Duuurgh? Modified from Harvard Business Review Oct 2007

30. Oil Co 2007 PANIC!! We need to find exploration engineers urgently!! Call OSC to find them!! No – HR said we’d have a problem 5 years ago … Is it a sudden requirement? … What about retraining your process engineers? … Who? Well … who do you know in the market? Duuurgh? Modified from Harvard Business Review Oct 2007

31. Strategic Talent Acquisition:Leading edge tactics? • Know what you are looking for! • A strategy to define, build and retain the required capabilities • Proactive continuous talent search • Search out the right people – don’t wait for them to come to you • Look continuously for key skills – don’t wait till you have vacancies • Global Talent intelligence • Know where the best talent is and how to reach it – continuous research • Web based geographic database of universities, competitors, alternative employers etc • Tracked database of global potential national hires – traced from University through career and including searches, applications, etc • Internal Talent Market • Line managers build and protect their own national talent • Internal search helps make sure it ends up in the best place • Is it better for one of your nationals to be poached by a competitor or a colleague?

32. Meeting the Global challenge for Talent Talent Management: the threat and the opportunity Developing & Deploying Talent Talent Strategy & Planning Retaining Talent Acquiring Talent Summary and key action areas

33. Talent Trading Co 2010 We know what strategic capabilities we need and are recruiting and developing nationals to meet those needs year on year We know our future resource flows and plan accordingly Nationals develop themselves using the best methods to build capabilities that are important to them, the organisation and the country Identify critical talent that must be retained We use monthly surveys to assess ‘propensity to leave’ Intervene at early stage of the leaving process Create Talent Intelligence web tool to allow external succession Continuous research for potential external national talent We actively search for national talent internally and externally (Modified from Harvard Business Review Oct 2007)

34. Thank you! William Scott-Jackson wsj@cahrr.org +44 7785110910