Becoming a Strategic Global HR Leader

May 15, 2013

Mark Frederick, Ph.D.

Director, Global Talent Management

www.iorworld.com

Objectives for this Session

• Discuss four critical “conceptual tools” that

will help you develop into a strategically

minded global talent professional:

Globalization

Organizational Culture

Innovation

Talent Management

Over the Past 15 Years…

• Strategic HR shift into higher level roles:

EVP of Global Human Resources (Kraft)

• Talent management continues to be the

aggressive, younger “sibling” of HR

• Some companies have both HR and

Talent functions, some have one or the

other

• Some business leaders still ignore HR

and focus on strategic talent needs

themselves

What the Marketplace Wants

• Search for Global Head of Human

Resources

Responsibilities / Qualities:

• A best practice HR business partner who

will drive and implement a fully integrated

talent management strategy globally

• Create a more sophisticated and strategic

HR function. Help the company become

more open and fluid globally

• Someone who has lived outside the

U.S. is preferred

What comes to mind

when you think of

Globalization?

Globalization

Globalization continues to be

the most influential process

shaping the marketplace today,

creating:

• Incredible opportunity

• Hyper-competition

• Economic interdependence

The Importance of Globalization

G8 is now G20!

…do as the

Romans

(Chinese)

do?

When in Rome (or China)

…just be

yourself? or

Intercultural Adaptation:

Who Should Adapt to Whom?

Intercultural Adaptation

• It depends! Context is key!

– Work objectives/strategy

– Organizational culture

– Flexibility/boundaries

– Team dynamics

– Personal work style

• Strategic, Global HR must have this competency and needs to develop it in their organization!

• China has an ancient tea drinking

culture dating back nearly 5,000

years

• Not “doing as the Chinese do.”

Since 1999, Starbucks has

grown to over 700 stores

• Changing consumer tastes, “tea

at home, but Starbucks in public”

• Conspicuous consumption in the

younger generation

Studying Starbucks in China

• Dramatically increased flows and

mobility of international talent in

the marketplace

• New configurations of teams never

experienced before (multicultural;

matrixed; virtual)

• Rapid changes in organizational

vision, values and policies

• Push to address, define, and

promote global sense of

organizational culture

HR Dynamics of Globalization

Many non-U.S. workers feel

that globalization has been a

form of Americanization or

Europeanization…..

…but the majority feel

that the ideal should truly

be GLOBALization.

Attitudes toward Globalization

• “Welcome to the Globally Integrated Enterprise”

• “Over the past decade, IBM and its clients have changed structurally, operationally, and culturally in response to globalization and new technology”

• “Global corporate integration will

involve significant changes in

organizational culture”

– Sam Palmisano, Chairman

Source: IBM.com

Moving Beyond Multinational

• “Schlumberger probably for the last

40 or 50 years has not had a

nationality. It’s not a French

company. It’s not an American

company. We don’t have an

obvious political or national identity”

• “You have to accept that certain cultures have different ways of approaching problems. The fact is that almost every culture has something valid to contribute”

– Andrew Gould, Chairman

Source: McKinsey Quarterly

No National Identity

• “We are proud of our Chinese roots, but we no longer want to be positioned as a Chinese company. We want to be a truly global company”

- Yang Yuanqing, CEO

• No headquarters

• Meetings of senior managers rotate globally

• Development teams are global and virtual

Source: The Economist

Global and Virtual

• “We consider our culture to be

among our innovations”

• “Over decades our leaders have

built GE’s culture into what it is

today – a place for creating and

bringing big ideas to life”

• “Today that culture is the unifying

force for our many business units

around the world”

GE culture attracts, integrates,

develops and retains global talent

Cohesive Global

Innovation Culture

Source: GE.com

Describing Organizational Culture

• Every organization has a unique culture, conscious or unconscious

• Quick activity: How would you describe your organizational culture to a stranger?

• Be concise: Use only a few words and phrases

• Speak with someone sitting next to you

Activity Debrief

• Was this easy or hard?

• Do you think your organization’s leadership could do this?

• How about every employee?

• In every location around the world?

• Would the words be similar or different?

• Are you speaking the same organizational cultural language globally?

Signs Visible Behavior

Norms Guidelines

Values Core Principles

Organizational Model of Culture Organizational Model of Culture

• Organizational values are illustrated by specific behavioral patterns in business functions

• Consensus on values & behaviors results in an “operating agreement” among members

• This consensus is most effectively established through deliberate interventions & discussion

• Leading companies are leveraging cohesive organizational culture globally to encourage innovation and attract talent

Aligning Values with Behavior

They openly discuss and negotiate:

• Problem solving

• Decision making process

• Communication styles and language

• Task completion - execution

• Meeting style

• Conflict resolution

• Rewards and recognition

Successful Global Organizations

• “At lunchtime, almost everyone eats in

the office café, sitting at whatever table

has an opening and enjoying

conversations with Googlers from

different teams”

• “Our commitment to innovation depends

on everyone being comfortable sharing

ideas and opinions”

• “No one hesitates to pose questions

directly to Larry or Sergey in our weekly

all-hands (“TGIF”) meetings – or spike a

volleyball across the net at a corporate

officer”

Google Approach to

Innovation Culture

Source: Google.com

• What sort of culture does your

organization create for innovation?

– Atmosphere / feeling

– Physical space

– Virtual realm

– Rewards & recognition

• How is leadership involved in

encouraging and promoting

innovation?

Strategic Innovation Questions

They encourage the following values & behaviors:

• High levels of collaboration

• Flat power structures with access to leadership

• Open communication

• “Failure friendly”

• Risk taking

• Employees are tolerant of ambiguity

• Leaders are adaptive and flexible with their styles

Innovation Cultures

• Organizational culture should be at the center of Global Talent Management

• All the phases of GTM should connect and align with one another

• The more conscious the culture, the better the talent strategy

• GTM should be built into your organization’s brand

Strategic Global

Talent Management

• “Our brand identity is the physical

expression of our strategy and

culture of Total Performance”

• “It represents who we are and what

we stand for, our vision, mission

and values”

• “It influences customer choice,

drives new and existing business

relationships, helps attract and

retain the best talent”

Strategic Talent Branding

Source: BAEsystems.com

• Is your organizational culture

meaningful to employees?

• How closely is your organizational

culture connected to your talent

brand?

• Is your culture attracting new

employees? If not, why?

• Does your culture retain talent?

• Does HR have a clear understanding

of business unit needs?

Strategic GTM Questions

• HR lacks capabilities to develop

talent strategies aligned with

business objectives: HR 25%

agreed / Line managers 58% agreed

• HR is not held accountable for

success or failure of talent

management initiatives: HR 36%

agreed / Line managers 64% agreed

• Talent management is viewed as

responsibility of HR: HR 36% agreed

/ Line managers 58% agreed

HR Must Sit at the Talent Table

Source: McKinsey Quarterly

Client Case Study:

Fortune 500 Biotech

• C-suite wanted to create a strong sense of company culture and values given rapid globalization

• Enlisted OD to strategically design core value sets (HR not involved & no dedicated talent management function)

• “Courage and Candor” chosen as a core value since it was perceived as a way of increasing innovation

Client Case Study:

Fortune 500 Biotech

• HR passively builds “Courage &

Candor” into the talent management system

• The company was facing shortages of technical talent in China & India

• Recruiters in China & India were actively using “Courage & Candor” interviewing questions: “Tell me about the last time you challenged your supervisor with a new idea”

• Lack of candidate response lead to systematic rejection of candidates

Client Case Study:

Fortune 500 Biotech

• “Courage & Candor” was not

considered within a global context, thus contributing to emerging market talent shortages

• “Courage & Candor” was too important to eliminate, so recruiting had to re-work interviewing questions

• “Tell me about the last time your team came up with a new idea”

• Organizational values have different meanings in different cultural contexts

• Multinational Indian company of 3,500 headquartered in Bangalore

• Lifetime HRD Excellence Award from the NHRD Programme

• 32% of new recruits come through Internal Referral Program

• “PeopleFirst” corporate motto – “respect for the individual”

• “Single Status” policy: same workspace, leave time, benefits

• Flex-time, no enforced dress code

• Salary based on performance

Non-Traditional Recruiting in India

Source: Sasken.com

• Established in 1868

• Ranked 50th most valuable brand in the world

• “Anchored in India and wedded to traditional values and strong ethics”

• “Bring your parents to work” Day

• “Home” and “workplace” are linked together

• Parents shape and guide the employee’s attitude

Traditional Retention in India

Source: Tata.com

HR in a Strategic

Leadership Role

• “Innovation has been a guiding

principle of this company since our

founding in 1985”

• “Our HR group focuses on nurturing

that legacy. HR’s goal is to provide

employees with the environment and

tools that they need to be successful

• “We strive to create an inspiring,

supportive environment where people

feel free to share their ideas and are

rewarded for innovative thinking” –

Dan Sullivan, EVP HR

Source: Qualcomm.com

“Culture of Innovation”

Source: “What Senior HR

Leaders Need to Know”

SHRM.org

Top Competencies for Senior HR

Leaders in Global Organizations

• United States: Global intelligence / global mindset

• Canada: Strategic thinking

• India: Global intelligence / global mindset

• Middle East and North Africa: Strategic thinking

67%

45%

63%

58%

• Understand how globalization affects your organizational culture and talent management system. Strategize how it will likely shape the future (importance of emerging markets)

• Join leadership in creating a strong sense of global organizational culture and build that into your talent brand

• Strategically connect organizational culture with the phases of the talent management cycle

• Develop and encourage a culture of innovation and learning that is built into the talent management system

Strategies for Strategic

Global HR Leaders

Q & A / Comments

Thanks and Keep in Touch!

mfrederick@iorworld.com

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