1. ALIGNING TALENT MANAGEMTENT AND SUCCESSION PLANNING WITH BUSINESS STRATEGY Case Study of CNIs Journey Kenny Ong CNI Holdings Berhad

2. Contents:

• Principles and Objectives

• Attract and Identify

• Strategy Examples

• Issues and Challenges

• Mistakes and Lessons

• Whats Next?

• For Starting Up

3. About: CNI

• 18 years old

• Core Business: MLM

• Others: Contract Manufacturing, Export/Trading, eCommerce

• Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan

• Staff force: 500

• Distributors: 250,000

• Products: Consumer Goods and Services

4. A. Principles and Objectives Principles 1. Background 2. Needs 3. HR

5. A. Principles and Objectives Principles 1. Background & Implications

• Founders

• Senior leaders

• Dedication & commitment

• Multi-racial, multi-cultural

• Age, Gender not a barrier

• Operational culture

• Operations-intensive

• Customers and policies

• Vocal and demanding

• Flexibility vs. Discipline

• Systems run operations

• Hierarchy and status

• Ad-hoc

• Project-based

• Meetings

• Empowerment

• Do not dare consult

• Young talents leaving

6. The Four Desperates 1. Desperate Competition 2. Desperate Consumer 3. Desperate Achievers 4. Desperate Changes

7. A. Principles and Objectives Principles 2. Companys Needs

• Succession Planning of Key Leaders Founding Directors (perpetual business theory)

• Retention of Key Staff especially younger ones

• Transform into a Performance-based organization

8. A. Principles and Objectives Principles 3. HR Philosophy

• Equal / Fair

• Happy / Productive

• Hire Low, Train High

• Performance vs Potential

• SP drives TM

• Retention / Engagement

• Talent Pool owned by the company

9. A. Principles and Objectives Objectives of Talent Management

• Succession Planning

• Retention of Key Staff

• Performance-based organization

10. A. Principles and Objectives

• CNI Model A: In theory

11. 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, Q12, C&B , ACDP, SCL, Transfers, Events, Recognition P/P Grid, Q12, PA, SDP, SP Selection Development Motivation Evaluation

12. A. Strategy First Culture Corporate Objective Corporate Strategy Structure Resources Leadership Person

13. A. Strategy First

• Balanced Scorecard

• Market Disciplines

14. A. Strategy First Financial Learning & Growth Internal Process Customers / Distributors Revenue Growth Productivity Market Value Department Operations Supplier & Alliances External Involvement Target Markets Products/ Services Channel Strategies Human Resources Technology Information & Intelligence Systems & Processes

15. 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)

16. B. Attract and Identify 1 year Service E1 and above Finalized by BOD Non-HOD Supported by HOD Decision?

• Identify

17. B. Attract and Identify Group I (Talent Pool)

• Identify

2 3 4 5 PERFORMANCE 2 3 4 5 POTENTIAL

18. B. Attract and Identify Group I (Talent Pool) Group II ( Potential) Group III ( Performance) Group IV (Counseling) 2 3 4 5 2 3 4 5 PERFORMANCE POTENTIAL

• Identify

19. B1. Additional Categories

• Definition of Premium staff

• Specially selected from the TP.

• They have in addition, the following attributes:

• • High-profile in the field or industry

• • Loyalty proven

• • Proven high work-rate and great attitude

• • Undeniable contribution and efforts

• • Highly looked upon and respected by most staff

• • Ability to multi-task and assist in various areas

• • Key people in CNIs Succession Plans

• Definition of Specialist Staff

• Has competencies (skills & knowledge) in a particular professional field of work.

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

• • The particular Competency (Skills or Knowledge or both) is highly required by CNI

• • Supply for the competency in the market is low but demand is high

• • The competency is difficult to learn, transfer and/or duplicate

20. B. Attract and Identify

• Attract

• • CNIs candidate attraction strategy is not strong at this moment.

• Hiring

• • Behavioral Event Interview

• • Panel

• • Telephone Interview

• • Live Assessments

• • Big 5 Psychometric Profile

21. 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, Q12, C&B , ACDP, SCL, Transfers, Events, Recognition P/P Grid, Q12, PA, SDP, SP Selection Development Motivation Evaluation

22. C1. Strategy: C&B

• Eliminate Staff Awards

• Eliminate Staff Trips

• Eliminate HOD trips

• Remove Salary structure limitations for TP

• Premium Group Pay

• Year-round promotions/increment

• Spot Bonus Pool

• Additional Profit Sharing points for TP

• Pay for Performers, pay for Non-Performers

• Additional % during annual increments

• Special Allowances

• SCL Allowances

• Flexitime

23. D. Issues and Challenges

• HODs unclear

• HODs disagree/unsupportive of TM

• HODs not committed to developing staff

• Functional silos

• HODs not willing to openly differentiate staff

• Incompetent superiors/HODs to TP staff

• Succession plan for specific positions is a moving target

24. D. Issues and Challenges

• Difficult to evaluate Performance

• Difficult to evaluate Potential

• Aligning TM and SP with Business Goals

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

• Unsynchronized and unmonitored training and development

• Difficult for TP staff to allocate time for training and development

• Once in, always in predicament

25. E. Mistakes and Lessons

• Succession Planning = business directions

• CEOs role

• Separate HRM and TND departments

• Measuring Potential is really difficult.

• Two types of Talent: Leaders and Specialists

• Openly announcing the Talent Pool - painful!

• PDP group of rough diamonds

• Split Leadership Development

• Official annual Event

• TM = Annual Performance Appraisal Discussions

26. E. Mistakes and Lessons

• Quarterly Performance Appraisals

• Change attitude and become arrogant.

• Create a Premium Group

• Projects and OJT assignments

• HODs = TP caretakers

• HODs can get isolated and jealous.

• Under-performing HODs.

• Rewards

• Sell and allocate their TP candidates

• TM = HRM

27. E. More problems we faced

• Criticism of TP selection

• Limited Funds

• Silo mentality

• Competitor recruitment target!

• Removal of Talent Pool members

28. F. Whats Next?

• Revamp LP

• Task Forces

• Over pay Premium from market

• Give talk in Induction Program

• Assign talent pool to other Divisional meetings

• Conduct 'Stay' interviews

• Start an intranet e-forum

• Flexi-benefits scheme for TP

• Survey to select their Top 5 most wanted special benefits

• Form central committees

29. F. Whats Next?

• Develop "XP Database" - similar to a Jobstreet CV

• Change Potential Evaluation;

• Break Talent Pool into Small Groups

• Social Work

• New methods for SP

• 3 months 'acting manager' program

• Introduce 360 appraisal

• Reinforce: Mentoring, Specialist Career ladder, E-Learning

• Maximize Talent using BCG Matrix

30. G. For Starting Up

• Get the Business Strategy right

• Link HRs role to Strategy (e.g. BSC)

• Clarify the HR Philosophy

• Strengthen Performance Management System

• Tackle the Learning Culture

• Redirect Funds ($$)

• Design simple Selection process

• Develop and Reward focused on Talent Pool

• Communicate throughout

• Attend more Comfori conferences

31. Summary

• Segmented & Targeted

• Attraction, Retention and Succession

• STARS

32. Thank You. soft copy of slides: [email_address]