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THE INTEGRATED APPROACH. Sponsor : John Nolan Members : Prerana Issar Emma West Sumeet Salwan Tim Munden Ranjay Radhakrishnan. 4. 4. Sponsor & Leader:. People. John Nolan & Nick Kitchen. Build an Integrated People Development System.

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THE INTEGRATED APPROACH


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    1. THE INTEGRATED APPROACH Sponsor : John Nolan Members : PreranaIssar Emma West SumeetSalwan Tim Munden Ranjay Radhakrishnan

    2. 4 4 Sponsor & Leader: People John Nolan & Nick Kitchen Build an Integrated People Development System • Talent will be developed within the constraints of the Unilever Strategic Plan - shift to D&E, future skills profile etc • Creating a talent pipeline that meets the strategic needs of the Company has been one of Unilever’s historic strengths. With successive organisational changes this process has become less integrated. We will re-establish this as a ‘signature’ process for Unilever which is Fit for (Future) Purpose Constraints Background • Deliver articulated Unilever 'point of view' on Talent Management • To build a talent pipeline that both allows Unilever to meets its strategic ambitions and takes an enterprise-wide view of talent providing opportunities for individuals to realise their potential. In doing so we can improve employee perception of transparency and fairness (GPS scores) • The HR Policies are in place to allow free movement of the key talent • The future skills requirement and organisational shape are well defined • Systems will be transacted through a geographical HR model • HR and Line leaders live the mindset that talent is a ‘Unilever’ resource Opportunity Assumptions • WL 2+ Globally - Headcount Planning & Forecasting - Succession Planning - Talent Exchange Processes - FRC’s - Skills Development Framework • The architecture might also throw up implications for Learning and Leadership Development interventions • ET Lead and should draw upon existing resources within the Pillar ET’s Scope Resources Key milestones Deliverables • LDT and Listing: • Improve rigour and consistency on the ‘What’ of LDT • Define the ‘How’ of LDT • Assess the readiness - internal and external • Build a common language around Assessment • People Development System: • A Unilever 'point of view' on Talent Management - a set of core principles which form the pillars of our Talent Strategy and actions • Defined architecture & People Development system for WL2+ headcount planning & forecasting across Unilever including Grad Recruitment plan, MCR requirement, role of FRCs - HRP/T+O Fit, Resource Deployment (Talent exchange), Mechanisms etc. • World Class Talent Management System: • HR Information System to support talent management system and processes (Peoplesoft extension / customised solution) • Allowing leaders to bring the SOL to life and play their part in building talent and teams • Succession Planning System for WL 2+: • Design and implement system Risk Mitigation actions KPI’s Develop our Leaders as Talent Scouts 2012/2013 • Local interests and local needs prevent a global Unilever approach • Appropriate technology to support an integrated people development system is not in place • Appointment of People from Succession Plan: Target 50% or at least min 15% improvement from 2011 baseline 4 1 3 2 • Stakeholder Management • Clearly defined WALCI for this activity defined by Q2 2012 fully operational end 2012 Integrated People Development system architecture & processes defined (Building blocks of Talent Strategy) Defining Talent Accountability, role of FRC, HRP timing, sequencing and roll up - calendar for 2012 end 2012 defined by end 2012 fully operational by 2013 Succession Planning system in place defined by end of Q1 2012 fully operational by Q4 2012 Implement our approach to Potential to inform Listing, LDT, HRP and FRCs , cross-referencing with the Taleo implementation

    3. Jobs to be done on this project • Context : • We need to improve our visibility of talent and our ability to • deploy talent in line with Business Strategy • move talent in line with our Career principles – across sub pillars, functions, …...geographies and at all WLs. • Jobs to be Done 1 : • Identify talent management practices, systems or technologies that will enable Talent management in our new global Unilever (Organised as Global Pillars with global Executive functions) • Jobs to be Done 2 : • Recommend an integration mechanism so that all our HR practice areas – Talent, Learning, Reward, OE feel wholistic and woven together .

    4. What we will cover today… • External Scan • Problems we are trying to solve • Recommendations • Communication Framework

    5. Companies we looked at …

    6. Common Themes emerging from these companies • Talent Supply Chain – an emerging field • Succession plans : • - Centralised / Controlled at the top • - Decentralised / less controlled at the bottom (OJP) • HR Planning – a common practice : • - Execution is now the only differentiator.

    7. Common Themes emerging from these companies • Career Mentors as a resource • Edgytalent and performance management • EVPbeing used as a broader communication tool • Career Principles rather than Career paths

    8. Problems we are trying to solve … • FRCs not equipped to take an integrated view of Succession / Appointments • Equipped to calibrate LDT, Rating, Listing • Visibility of Talent is limited to function or sub function (Eg BD) • Cross pillar & sub function moves not happening : • Appointments sub optimised • HRPs are not deep enough in the organisation or integrated • Succession Plans are not balanced & unreal (Eg Gender and Cross Pillar candidates) Biggest Nut to crack CD, BB, BD … our main focus

    9. Issues we have been flogging… FRC Succession Plans Management Development Career Templates

    10. RECOMMENDATIONS

    11. Big 5 recommendations • Launch ‘Talent Supply Chain’ • Implement a cross pillar Appointments process • More rigour & discipline in Forecasting and Scheduling • HR owns Talent Supply Chain not Line • Functional Capability Committees not FRCs • Focussing on Capability Building (incl Calibration) • Career Guidelines & Principles to replace Career templates & paths • Pilot Career Mentors • An approach for Communication

    12. Talent Supply Chain Matches demand & supply to deliver best-fitting candidates for vacancies. Appointments Process FCC (not FRC) (Capability & Calibration) Forecasting & Scheduling Succession Plans (Balanced & Real) Career Principles Career Mentors Line Leader Views TALEO (enabling smooth Information Management) Leadership Belief & Commitment

    13. Functional Capability Committees Capabilities • Future strategic capabilities of the function • Domain Expertise • Career Principles • Calibrate Capabilities - who is great at which skill - who needs to develop in which area • Talent profile • Identification of Key Roles Performance Calibration (including cross sub pillar views on performance) • LDT/ Rating • Listing & Readiness • Key Roles • Retention of key talent • Who needs development / experience in which area WHAT HAS CHANGED Functional Resource Committees will (cannot) do Cross functional Resourcing (Succession Planning) Q2 focus Q4 focus

    14. WHAT HAS CHANGED REACH DOWN REACH WIDE HRP & SUCCESSION PLANS • Talent Review of Cluster HRP to include : • - WL3 succession plans (discussed only by exception) • - Outbound Expatriates & future plans • Succession Plans to go Bottom Up and Top Down : • - Markets to include all roles in cluster Submissions • - Categories / Functions draws data from Geographic Submissions • - Balanced Plans : (a) Gender (b) Cross functional (c) Expatriates if any (D) MCRs if any • % of appointments made from HRP Succession Plan – to be a KPI

    15. More Analytics… More Insight… Forecasting & Scheduling • A step change in analytics and insights related to : • Roles Coming up & People Coming Up – in the next 4 quarters • Role Requirements v/s Experience People are looking for : • Trends, insights ? • Where exactly are the gaps (A) Roles (B) Functions (C ) Time

    16. How does Cross Lane Movement work in India ? • Sales AND Marketing Resource Committee for effective Succession Planning. • Distinct from FRCs. • S&M Resource Committee • Meets Quarterly to discuss Vacancies & People • Chaired by Cluster EVP (HRVP in absentia) • All WL4s in Sales and Marketing (CD, BB & BD) attend • All WL2C+ vacancies and People moves discussed : • Prioritization of which person gets which role decided. • HRBPs for CD & BB work together on WL2A, WL2B moves and preparation of S&M RC Leadership Belief & Commitment for Cross Lane Movement

    17. Appointments Forum - CD, BB and BD WL 4 WL 3 (2C Key Roles?) Sponsors Sponsors Inputs Outputs Line : Cluster / Country EVP / SVP HR : VP HR Jobs coming up in the next 4 quarters (Taleo ?) People we are looking to find roles for (Taleo ?). Inputs from FRCs in terms of LDT, Rating, Listers, Readiness Line Leader views on (a) next role for each person (b) key requirements for each upcoming role Succession Plans from HRPs (Taleo) Proactive Talent Mapping Candidates Line : CCO / CMO HR : SVP HRs (John & Fiona) • In rank order two candidate options for every job • People for whom we are unlikely to find roles • Roles for which we are unlikely to find people Members Members Line : All VP-CD, VPs- BB & all RCVPs HR : HRDs – CD & Marketing, LD leads Talent VPs – Ranjay & Geoff HRVPs : By invitation Quarterly Monthly Frequency Frequency Agenda Key roles & their requirements Open Vacancies Available People Vacancies Coming up in the next 4 quarters People due for moves in the next 4 quarters • At WL 2 similar process in Geography : • HRDs (CD & Marketing) recommends to Line Leaders2 • Enabled by Relevant HRBPs & OJP type solution

    18. What gets decided in which forum ?

    19. How Taleo will help ? Career Planning : Career Planning module allows employee to draw up Career Scenarios & see their current skill level (based on assessments) and requirements in comparison to other roles . Enhanced Visibility : All HRBPs will have access to the Talent profile of all non-HR employees globally up to WL4 View plan on timeline View plan on matrix Add people to succession plan Set as interim replacement Set readiness Rank successors Better Succession Plan Management : Succession plan for all jobs to be on Taleo Better Visibility of Talent Pools

    20. PILOT this before we decide whether to scale up Career Mentors

    21. Other Issues needing fleshing out • Organisational solution to deliver a robust Talent Supply Chain • Current Leadership Development team operates through a wide range of sub functions & is not geared up to deliver this. • Cross pillar Talent Supply Chain resources (not dedicated to pillars) ? • Taleo : Can we leverage Taleo more - Eg Skill Assessments & Talent profiles , Domain Expertise ? • How do these principles apply to across the various functions ?

    22. Draft – yet to be worked on COMMUNICATION Simplify & evolve the Circle of Life (Performance Cycle) into an integrated talent management approach Develop a Employee Centered view of the Development process.

    23. Our EMPLOYEES want COMMUNICATION WHICH SPEAKS TO them not ‘US’ … Headlines from a focus group of managers. • Their feedback on Unilever’s talent management approach, and performance wheel : • Most could not recall it; when pressed, said “PDP” • They feel it is too complicated • “Is not based on what I want but on what the company wants” • “Doesn’t make me “feel” anything positive, let alone valued” Get: WL 2s (majority of the management population) ToEngage with the circle of life / performance cycle By: Developing an employee centered view of the development process

    24. What actually matters to me…. The assignment I do Goal setting Reward & Recognition Performance rating Performance differentiation Differentiated pay Underpinned by our Values: What I learn PACE IDP Performance feedback “What I really want to do in life” ABC conversations

    25. Unilever EVP : Made By UYou’ll become part of a leading edge company, where you’ll work with outstanding brands and outstanding people to drive sustainable business growth – this is our employer brand promise.. Talent Performance & Reward Learning • Openness, diversity & inclusion are at • the heart of talent management at UL • We deploy our best players where they • have maximum impact for UL • We take risks by accelerating, stretching • and developing our talent early on • We assess performance and potential in • a rigorous and consistent way • Our leaders build leaders : continuously spotting & developing our future leaders • So, what does this mean for you? • You know where you stand • Conversations about you take place with you • Opportunities are there, across Unilever • You can accelerate your development through stretching assignments • You can impact your growth, UL and the wider world… P A C E As a learning curriculum architecture Gen Skills Prof Skills Leadership Skills Have a common Brand Architecture Unilever Values

    26. MOMENTS THAT MATTER ON BOARD “ I was able to be myself from day one” PERFORM “My manager gives me rich feedback in the moment that helps me grow” ATTRACT “ there were so many compelling reasons to join and I felt valued at every step of the selection process” DEVELOP “I’ve been given stretching opportunities, which have enabled me to develop into what I want to be ” LEAVE “I will always be an ambassador for UL” MADE BY YOU – PACE – VALUES – TALENT PRINCIPLES – PERFORMANCE CULTURE – REWARD 26

    27. THANK YOU

    28. BACK UP SLIDES ON EXTERNAL PRACTICES

    29. So what should be different ?

    30. External Survey Workforce Management Initiative : enables IBMs globally integrated enterprise. It enables moving the right skills to Opportunities as a critical response to business success. • WMI system does for talent management what in Unilever Work Levels did for pay and Professional skills dictionaries did for learning. • Standard jobs, standardized workforce inventorisation of skills and competencies and essentially an IT enabled capability to direct the talent market in a way that goes beyond just managing it for efficiency. • Looks at contractors and applicants as a talent pool – and thereby standardizing and making transparent the skills and attributes for this talent source as well. • Talks about how skill inventory and competency models are too generic to drive deployment of talent across jobs in the company. • Applied for very technical areas or to describe leadership attributes. But is we really need a talent management system that starts at strategy, converts that into demand for standard jobs and then has the ability to transparently look at talent availability with the right levels of pixels… •  And goes WAY beyond FRC’s and HRP’s

    31. External Survey Context : Accenture has 240,000 people. About 200,000 of these roles rotate on a regular basis. Talent rotates (a) between Consulting, Technology and Outsourcing (b) across Industries and (c) across geographies. • Integrated Talent Management Practices : • Each function has clearly articulated Career principles (Career Navigator). Each employee has a Career Counselor (different from Line Supervisor) who plays an active role in advising and helping each employee make choices. • They move talent using four processes : • At Junior to middle levels, employees are encourage d to “Own Your Career” through the Career Marketplace (OJP process) • Top 1000 roles are managed centrally by Group CEO • Leadership & Succession Planning Process (Deploy to Entity) : Group CEO of the entity, HRBP of the entity • They have a Talent Supply Chain function : which looks at Forecasting (Numbers & Skills), Scheduling (When will which person with which skill / need be available), Resourcing (Matching Opportunities with Skills / Needs). HR leads this with the Vertical lead. • Accenture uses their Employee Value Proposition to communicate an integrated HR view to employees (1) Work you do (2) People you will work with (3) Learning you will get (4) Reward for performance (5) Environment you will work in (6) Values you will live by. All employees are evaluated through the Accenture Performance Management system (a) Value Creator (b) Business Operator (c ) People Builder.

    32. External Survey Context : Shift of power from local offices in the 70’s 80’s to now. From 3000 to 10000 employees. “Practices” and “Sectors” started owning the talent more than the local offices. • Practices & Sectors need visibility of the “Staffing” pool. How do they do that? • Explicit ritual on performance assessment of people where the local boss HAS to check with the ‘Practice’ on feedback. • If the person is not “known” by the practice, it is formally built into IDP to get “radiation” in the company. • From year 0-6, everyone has a mentor who gathers feedback locally and globallyon the individual. Typically this mentor is in the Practice that you have chosen to specialize in. Mentor gets this feedback twice a year. • People have to sign up for “Practices” and “Mentors” as they get people developed or elected to partnership. So track record of bosses and practices critical to attract talent. • Local committee that reviews talent at each level . Mission is to have “lasting impact” and “retaining and building exceptional talent” – partnership case is built with points on the board for both.

    33. External Survey • Articulated end state of Talent Capability and then worked back from there in terms of priorities and actions. • Taleo : end to end integrated Talent system – saw this as a key enabler. • Track record of moving a high number of talent around on international assignments. • For succession and advancement planning – Mars profiled a number of the key roles from a development perspective i.e. not what do we want from someone to do this role but rather what will this role give someone in terms of their talent. • Mars did transition management well – helping people to transition successfully especially when making big jumps in Work Levels. • Well developed use of selection panels which were run in each part of the business and used at all levels to confirm people as high potentials. These ran very well within each pillar but they (like us) hadn’t found a way to crack the cross pillar piece. • Has an Employee Value Proposition : • Expanded TRS : which included assigning a monetary value to all the development that an individual received. Great development experiences were a part of the Mars EVP. Every experience, course etc would be captured as part of the TRS & acted as a powerful barrier to exit for key talent. • Clear Articulation of how you grow your career in Mars : • Positioned as a 2 way responsibility – the employee and the employer.

    34. External Survey : Vodafone • Highlights of the Talent approach: The LDT is key to visibility of talent. • 9 box grid is the cornerstone of the talent framework. • performance & potential. • All management population plotted. • Top WL2 talent identified early for potential WL5 roles; individuals aware of their status; more than HiPo • Top 200 leaders managed by global talent team and Ex Co. • No FRCs, only talent reviews within executive leadership teams. • Development Interventions used for visibility, assessment and development of talent • “Corporate” only focuses on WL3+. Nothing for managers below that level. And even at WL3, only for top talent. • First tier program for future CEOs • Second tier program for Functional excellence, for functional rising stars. • Academies – functional skills for everyone. • Reward used as a key talent lever – no other “integration” of talent systems • “We handcuff our good people with excellent salaries. They are priced out of the market.” • Reward is the cornerstone of talent philosophy. • Very strong differentiation in salaries, bonus and stock options reflecting talent decisions

    35. External Survey • Talent Management focussed on Individuals rather than Organisation. • The AZ talent machine assumed that organisational effectiveness (Everything that we would see in a HRP report that did not centre on individual talent or succession) was done in market all year round by the regional HRDs and their teams. • This freed up the talent agenda to have real in-depth conversations about individual talent • The is a Talent Roll Up process which went from local to global in a linear but clear way – Country (March-April) Region (May-July) Senior Executive Team (SET) Area (September) followed by a SET talent review (December). • The board played an active role in meeting key talent in succession to Top 30 roles and were fully involved in the overall talent machine. • AZ used its Employee Value Proposition (EVP) as a way of bringing their people agenda to employees. The EVP was its ‘integrated approach.’ The EVP was created to enable the new corporate brand ‘Health Connects Us All’ get real traction with employees. The AZ EVP was the people dimension right at the core of the corporate brand. Its was their People Promise.

    36. External Survey Had an Integrated talent management system, similar to Taleo. Use of Talent Profiles for internal selection and succession planning. Strong connection between open job posting and succession planning and clear principles around what roles would be succession planned vs openly advertised. Agreement that for critical senior roles there would be call made on who would be appointed based on what was best for Cadbury as a whole – so these appointments and candidates would be discussed and agreed at the equivalent of ULE at each meeting and there would be agreements about the priority order of candidates for positions and vice versa. Articulated set of career principles that applied across the organisation. A set of globally consistent responsibilities/standards for line managers which were included in their 3+1’s. Development of an EVP – partly developed, stopped as a result of the Kraft purchase.

    37. External Survey • Pepsi People Planning Process : • At equivalent WL2C + Local Chairman + HR • WL equivalent 3a to WL 4a : Discussed at Regional level • WL equivalent 4B + : Discussed at Pepsi Executive (CEO level) • OJP for all WL1 and WL2 roles : • Kenexa system • All vacancies are posted internally, externally and on Social media at the same time • No Integrated Communication across HR streams. Each HR stream communicates its principles very clearly as a part of induction and on the portal.

    38. Customer Feedback Global Marketing Resource Committee on Cross lane movement between CD, BB and BD • At WL2 and WL1 : • Essential (mandatory in the future?) to have cross lane experience across CD, BB and BD • WL3 +: • Managers need to consider longer term career destination. Including : • General Management : which implies that they continue to move across CD, BB and BD • Marketeer : Not specific to any category but implies moving across BB and BD and could even be across Categories • Specialised Marketeer : This could be in specific pillars (Eg BB or in BD) and /or in specific Categories (Eg Personal Care) • Therefore movement between CD, BB and BD will also be important.

    39. Calendar of each forum Ratings LDT Q2 FRC Demand Planning Q4 FRC Ratings LDT HRP Roll Ups Appointment Forum (Monthly) T&O Refresh / V2 (once every 2 years) Or When SP changes Strategic Plans FTE, Org Shape

    40. Talent Supply Chain – KPIs • Monitoring the quality of the process is part of the implementation. Examples for KPIs Average days needed to fill vacancies % of roles filled from Succession Plans Real Succession Plans The KPIs should be evaluated across levels Balanced Succession Plans % of roles with cross pillar and gender balanced representation Average number of working days required to provide long list

    41. Draft – Work In Progress Talent Supply Chain Supply Demand People Coming up for moves in next 4 quarters. What Experience & Skills do these people have? What Experience & Skills do they need ? Vacancies in next 4 quarters Given Business Strategy what are skills & experiences required for the job ? Career Principles & Templates Experience Profile of Talent Talent Strategy Business Strategy

    42. Talent Supply Chain process Understanding Skills & Experiences required for each upcoming job (by HRBP) • Matches demand & supply to deliver best-fitting candidates for vacancies. Managers coming up for moves in the next 4 quarters • Development of Long Lists by Talent Supply Chain • Experiences / Skills these candidates have • Experiences / Skills these candidates need Suggestions by the hiring line manager External candidates High potentials, identified successors and high performer, … Succession Plans Vacancies in next 4 quarters Development of short list by Appointments Forum Final selection through hiring manager

    43. DRAFT WL 4 Appointments ForumExecutive Functions Sponsors Outputs Inputs Line : Chief Functional Officer HR : Functional VP HR Jobs coming up in the next 4 quarters (Taleo ?) People we are looking to find roles for (Taleo ?). Inputs from FRCs in terms of LDT, Rating, Listers, Readiness Line Leader views on (a) next role for each person (b) key requirements for each upcoming role Succession Plans from HRPs (Taleo) Proactive Talent Mapping Candidates • In rank order two candidate options for every job • People for whom we are unlikely to find roles • Roles for which we are unlikely to find people Members Functional Leadership Team Enterprise Support HR VP Quarterly Frequency Agenda Key roles & their requirements Open Vacancies Available People Vacancies Coming up in the next 4 quarters People due for moves in the next 4 quarters

    44. Limited Cross-lane Movement in CD and Marketing • Only 9% with 3 Lane • experience • 40% with only ONE lane • experience WL3+ CD Moves from CD Action: Establish an integrated People deployment process Moves from BB Work Experience Profile Two Year Movement History – WL2+ WL3+ Marketing Moves from BD

    45. We need to build more General Managers 30% in Amber Box • 54% of WL5 GMs had 2 lane experience before their 1st GM role • 85% of WL4 GMs have only 1 lane experience • The new generation of GMs need more Marketing and CD • experience • Action: • Redefine Career templates • Build a GM curriculum