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Critical Success Factors: Make your Saudisation Programme work. Professor William Scott-Jackson 0044 7785 110910 wsj@cahrr.org. وسهلا اهلا. Research. Survey of GCC Nationals and ex-pats In-depth interviews with over 40 major ‘best practice’ GCC organisations Public and private

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critical success factors make your saudisation programme work

Critical Success Factors:Make your Saudisation Programme work

Professor William Scott-Jackson

0044 7785 110910

wsj@cahrr.org

وسهلااهلا

research
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
talent in the middle east
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

main conclusions best practice
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!

best practice major conclusion
Best Practice: Major conclusion

“Talent Management” not quotas

“Talent Management” not quotas

saudisation as talent management
Saudisation as Talent Management

Talent Management:

Developing

&

Deploying

Talent

Talent Strategy

&

Planning

Retaining

Talent

Acquiring

Talent

Summary and Key action areas

competing or complementary employment and demographics
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.

demographics nationals as small proportion of workforce
DemographicsNationals as small proportion of workforce

Leadership roles

Specialist roles

(sector e.g. oil or function e.g. HR)

demographics nationals as small proportion of workforce1
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

demographics nationals as large proportion of workforce
DemographicsNationals as large proportion of workforce

Leadership roles

Specialist roles

(sector e.g. oil or function e.g. HR)

demographics nationals as large proportion of workforce1
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

slide12

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

linking strategic intent and capability measures
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

the process
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

developing and deploying talent
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

slide16

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

slide17

Scott-Jackson, W.B. Mayo, A. & Rushent, C (in prep)

World-Class Learning and Development: the major success factors,

methods of delivering learning impact on knowledge retention
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.

part 4 retaining talent
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

global bank 2007
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

retention a differentiating strategic capability
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”

dimensions of staff turnover
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!

some turnover is ok
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

type b turnover when to attack

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

plan process to increase retention of the best people
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

summary targeted retention resourcing at its best
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!
part 5 meeting the global challenge for talent acquiring talent
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

global conglomerate 2003
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

oil co 2007
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

strategic talent acquisition leading edge tactics
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?
meeting the global challenge for talent
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

talent trading co 2010
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)

thank you
Thank you!

William Scott-Jackson

wsj@cahrr.org

+44 7785110910