aligning talent management and succession planning with business strategy comfori hr conference

ALIGNING TALENT MANAGEMTENT AND SUCCESSION PLANNING WITH BUSINESS STRATEGYCase Study of CNI’s Journey Kenny Ong CNI Holdings Berhad... Succession Planning of Key Leaders – Founding Direc

ALIGNING TALENT MANAGEMTENT AND SUCCESSION PLANNING WITH BUSINESS STRATEGY

Case Study of CNI’s Journey

Kenny Ong

CNI Holdings Berhad

A Principles and Objectives

B Attract and Identify

C Strategy Examples

D Issues and Challenges

E Mistakes and Lessons

F What’s Next?

G For Starting Up…

4 Malaysia, Singapore, Brunei, Indonesia, India,

China, Hong Kong, Philippines, Italy, Taiwan

5 Staff force: ± 500

6 Distributors: 250,000

7 Products: Consumer Goods and Services

A Principles and Objectives

Principles

A Principles and Objectives

Principles 1 Background & Implications

8.Customers and policies

9.Vocal and demanding

10.Flexibility vs Discipline 11.Systems run operations 12.Hierarchy and status 13.Ad-hoc

14.Project-based 15.Meetings

16.Empowerment 17.Do not dare consult 18.Young talents leaving

The Four Desperates

1 Desperate

Competition

2 Desperate Consumer

3 Desperate

Achievers

4 Desperate

Changes

A Principles and Objectives

1 Succession Planning of Key Leaders –

Founding Directors (perpetual business theory)

2 Retention of Key Staff – especially younger

ones

3 Transform into a Performance-based

organization

A Principles and Objectives

A Principles and Objectives

A Principles and Objectives

CNI Model A: In theory…

A Principles and Objectives

CNI Model B: More Practical…

Business Strategy

OJT, Mentoring, Big-5, LP, PDP, SDP, Projects,

P/P Grid, SP Table, PDP, Premium,

Evaluation

A Strategy First…

Culture

Corporate Objective

Corporate Strategy

Structure

Resources

Leadership Person

A Strategy First…

Culture

Corporate Objective Corporate Strategy Structure Resources

Leadership

Person

1 Balanced Scorecard

2 Market Disciplines

Department Operations

Supplier &

Alliances

External Involvement

Target Markets

Products/

Services

Channel Strategies

Human Resources

Technology

Information & Intelligence

Systems &

Processes

A Strategy First…

Operational Excellence

(low cost producer)

Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995

Product Leadership (best product)

Customer Intimacy (best total solution)

A Strategy First…

B Attract and Identify

1 year Service

E1 and above

Finalized

by BOD

HOD

Non-Supported

by HOD Decision?

• Identify

B Attract and Identify

B Attract and Identify

B1 Additional Categories

Definition of ‘Premium’ staff

1 Specially selected from the

e Highly looked upon and

respected by most staff

f Ability to multi-task and

assist in various areas

g Key people in CNI’s

Succession Plans

Definition of ‘Specialist’ Staff

1 Has competencies (skills &

knowledge) in a particular professional field of work.

2 A staff is deemed to be a Specialist when all the following occurs:

a The particular Competency (Skills or Knowledge or

both) is highly required by CNI

b Supply for the competency

in the market is low but demand is high

c The competency is difficult

to learn, transfer and/or duplicate

B Attract and Identify

C Strategy Examples

CNI Model B: More Practical…

Business Strategy

OJT, Mentoring, Big-5, LP, PDP, SDP, Projects,

P/P Grid, SP Table, PDP, Premium,

Evaluation

C1 Strategy: C&B

1 Eliminate Staff Awards

2 Eliminate Staff Trips

3 Eliminate HOD trips

4 Remove Salary structure

limitations for TP

5 Premium Group Pay

6 Year-round

promotions/increment

7 Spot Bonus Pool

8 Additional Profit Sharing

points for TP

9 ↑ Pay for Performers,

↓ pay for Performers 10.Additional % during

Non-annual increments 11.Special Allowances 12.SCL Allowances 13.Flexitime

D Issues and Challenges

1 HODs unclear

2 HODs disagree/unsupportive of TM

3 HODs not committed to developing staff

4 Functional silos

5 HODs not willing to openly differentiate staff

6 Incompetent superiors/HODs to TP staff

7 Succession plan for specific positions is a

moving target

D Issues and Challenges

8 Difficult to evaluate Performance

9 Difficult to evaluate Potential

10 Aligning TM and SP with Business Goals

11 To the Talent Pool, it is more work, no reward

12 Unsynchronized and unmonitored training and

E Mistakes and Lessons

1 Succession Planning = business directions

2 CEO’s role

3 Separate HRM and TND departments

4 Measuring Potential is really difficult

5 Two types of Talent: Leaders and Specialists

6 Openly announcing the Talent Pool - painful!

7 PDP group of rough diamonds

8 Split Leadership Development

9 Official annual ‘Event’

10 TM = Annual Performance Appraisal

Discussions

E Mistakes and Lessons

11 Quarterly Performance Appraisals

12 Change attitude and become arrogant

13 Create a ‘Premium Group’

14 Projects and OJT assignments

E More problems we faced

1 Criticism of TP selection

2 Limited Funds

3 ‘Silo’ mentality

4 Competitor recruitment target!

5 Removal of Talent Pool members

F What’s Next?

1 Revamp LP

2 Task Forces

3 Over pay ‘Premium’ from market

4 Give talk in Induction Program

5 Assign talent pool to other Divisional meetings

6 Conduct 'Stay' interviews

7 Start an intranet e-forum

8 Flexi-benefits scheme for TP

9 Survey to select their Top 5 most wanted

special benefits

10 Form central committees

F What’s Next?

11 Develop "XP Database" - similar to a

Jobstreet® CV

12 Change Potential Evaluation;

13 Break Talent Pool into Small Groups

14 Social Work

15 New methods for SP

16 3 months 'acting manager' program

G For Starting Up…

1 Get the Business Strategy right

2 Link HR’s role to Strategy (e.g BSC)

3 Clarify the HR Philosophy

4 Strengthen Performance Management System

5 Tackle the Learning Culture

6 Redirect Funds ($$)

7 Design simple Selection process

8 Develop and Reward focused on Talent Pool

9 Communicate throughout

10 Attend more Comfori conferences

Segmented & Targeted Attraction, Retention and Succession

Thank You.

soft copy of slides: kennyong@cni.com.my