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Transcript of Knowledge Transfer and the Changing Workforce Simon Herriott, Managing Director, DuPont Sustainable...
Knowledge Transfer and the Changing Workforce
Simon Herriott, Managing Director, DuPont Sustainable Solutions
November 2, 2011
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
The Issue
“Population aging is unprecedented, a process without parallel in the history of humanity…”
• United Nations, World Population Ageing Report, 2007
By 2020:
• Most developed countries will have more than 35% population over 50
• In Asia Pacific alone, 50+ population will grow almost 5 times faster than the total population growth and will represent almost 1 billion people across the region
• Retirement ages are rising (~ 65) meaning more older workers
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3
Several studies on the Effects of Aging in relation to safety of the older worker…..
Sources: Liberty Mutual Research Institute Quarterly Review 2007Dr Monika von Bonsdorff, et al, Finland, Journal of Occupational and Environmental Medicine, Volume 52, Issue 12, December 2010.
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4
Workforce is not just aging, but changing……
Source: Managing Generation Y in the Workforce: Corporate Executive Board: Asia HR Executive Board 2011
Born Age% of
global workforce
Typical Level Stereotypes
Boomers 1946-64 47-65 27
LoyalTech-challenged
Wealthy
Gen X 1965-79 32-46 40
Attached to FamilyCynical
Individualistic
Gen Y 1980-89 22-31 33
EntitlementIrrational/Obsessive
Tech-savvy
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Age 60+ Population in 2000
5Source: U.S. Census Bureau 2000
Under 5% 5% to 12.4% 12.5% to 20% Above 20%
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Age 60+ Population in 2025
Source: U.S. Census Bureau 20006
Under 5% 5% to 12.4% 12.5% to 20% Above 20%
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Growth in the Working-Age Population- or should we say Decline?
7
Mexico Brazil India SouthAfrica
China SouthKorea
Australia Canada US Nether-lands
Spain France Russia UK Japan Germany
Italy-50%
0%
50%
100%
150%
200%
62%
18%
1970-20102010-2050
Source: Deloitte Research, It’s 2008: Do You Know Where Your Talent Is? Why Acquisition and Retention Strategies Don’t Work
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Growth of US Workforce - 2000 to 2020
8
under 14 15-24 25-34 35-44 45-54 55-64 65+-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
7% 8% 7%
-10%3%
73%
54%
Source: US Census Bureau
Rapid growth in the over 55 workforce
Declining number of mid-career workers
Fewer younger workers entering
1 2 3
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US Fatal Occupational Injuries: Age
9
18-19 20-24 25-34 35-44 45-54 55-64 65+0
2
4
6
8
10
12
14
2.4 2.3 2.32.8
3.44.1
11.5
Age of Worker
Fata
lities
Per
100
,000
Wor
kers
Source: NSC, Injury Facts
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Challenges to U.S. Workforce
Aging workforce,
Changing attitudes/motivations
Knowledge Transfer
Limited availability of key skills
• Shrinking skilled worker pool
• Cannot count on sending countries for skilled workers
• International competition for talent
Changing face of work – global, virtual, independent
Retaining and growing intellectual and experience assets
Continuing to develop diversity
• Race
• Gender
• Generations
• Culture
10
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11
So what?
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12
Work processes/Technologies
Reward/Motivation
Tasks/Functions
SystemSupport
ResourcesPeople
Understanding and managing the people element is critical for sustainable performance excellence .
While technologies and systems become more complex, people, as the ultimate decision makers,
play an even more significant role.
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…it needs an approach that puts people at the center
Source: DuPont Sustainable Solutions
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Work/Life balanceProductivity
Engagement/Social Support
CompetencyCapability
MotivationAttitude
Physical/Functional Capability
Growth/ Learning
Source: DuPont Sustainable Solutions 13
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
Changing Workforce: Challenges and Opportunities
• Adds complexity to people issues e.g., training, engagement, reward, communication.
• It is a systemic change.
• Business risks? Performance risks? Operational risks? Are those tasks/processes designed 20 years ago feasible for today’s workforce?
• Increased operating complexity demands seamless teamwork and collaboration
• Managing it well leads to strategic advantage (beyond managing the demographic issue)
14
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An Integrated Approach
15
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Work/Life balanceProductivity
Engagement/Social Support
CompetencyCapability
MotivationAttitude
Physical/Functional Capability
Growth/ Learning
• Knowledge Transfer• Individual development plans• Offer blended feedback mechanisms• Use blended learning approaches – for all
ages
• Identify critical functions/Skills• Recruit and manage talents • Target competency• Leverage contingency planning
and succession planning
• Re-careering incentives• Offer blended performance incentive
options• Track performance
• Integrate S&H promotion/screening
• Offer incentives for wellbeing programs
• Provide healthy work setting/schedule
• Match functions and capabilities
• Target risks• Work re-design
• Offer work extension • Re-careering options• Re-training• Flexible work organizations
• Cultivate communities• Use team approach• Understand
generational attributes• Embrace differences -
no right or wrong
Source: DuPont Sustainable Solutions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
An Integrated Approach
16
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Work/Life balanceProductivity
Engagement/Social Support
CompetencyCapability
MotivationAttitude
Physical/Functional Capability
Growth/ Learning
• Identify critical functions/Skills• Recruit and manage talents • Target competency• Leverage contingency planning
and succession planning
Source: DuPont Sustainable Solutions
Recruitment
TalentManagement
Performance Partnership
Learning and Development
OrganizationalAssessment
Establish criteria for candidate selection.
Provide the skills necessary for success in the position.
Integrate Job/Position requirements into testing and assessment tools.
Establish criteria for promotion and personnel movement.
Manage projects and global assignments based on required skill sets.
Measure performance criteria and skills by employee and across employees.
Assess performance results consistently.
Identify appropriate learning opportunities and strategies to support employee development.
Complete organizational “strengths” and “needs” analyses.
Assess organizational capabilities and develop workforce planning strategies.
Jobs & Positions
Competencies
Competencies and Capabilities become the foundation of people development
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Identify Critical Skills
18
High/Immediate
Low/not immediately foreseeable
Critical Functions
Critical Skills
Low High
Skill Replacement
Difficult
Easy
• Supply• Training requirements• Complex/experience-intense• Skill maturity period• Multiple interfaces
Source: DuPont Sustainable Solutions
Skill Replacement Factors Attrition Concern1 2
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Organizational Competency Building and Retention
19
Identify Critical Skills
Retention
TalentRecruiting
KnowledgeTransfer
Target TalentInternal Talent
Work-extensionRe-careering
Performance support system
Mentoring/coachingCritical event interview/reviewJob shadowingStorytelling
Work re-organization
Outsourcing potentialExternal Talent
Center of Competency for SHE
Global CoC – others include Engineering, Capital, Operations
Central custody of Standards
Deep specialist subject matter expertise
Development center for regional/local SHE resources
Support SHE Governance and Assurance for Board
Strategic Direction for SHE
Subject Matter Expertise
Updating and keeping the standards current
Influencing from centre
Assess and fill SHE Resource needs of the sites and center
Development of SHE competencies in sites and center
Tracking metrics and 2nd & 3rd party audits
External face for SHE related matters
Criti
cal R
esou
rce
as
wor
kfor
ce c
hang
es
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An Integrated Approach
21
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Growth/ Learning
• Knowledge Transfer• Individual development plans• Offer blended feedback mechanisms• Use blended learning approaches – for all
ages
Source: DuPont Sustainable Solutions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
What is Knowledge Management?
• KM = leveraging of collective wisdom to increase responsiveness and innovation
• A dynamic knowledge management system for a viable strategy for the changing workforce
Primary repository for knowledge is in peoples’ heads
Here it coexists with intelligence and experience – comes “out” as knowledge when decisions need to be made
Is contextual – ie. Determined by the circumstances under which the individual learned the knowledge
Is dynamic – ie changes with new experiences and stimuli
• Pivotal issue is the creation of a culture to support trust and collaboration
Bulletpoint article (May 1998) – biggest source of disappointment with KM practices is cultural change
• “the greatest difficulty lies not in persuading people to accept new ideas, but in persuading them to abandon old ones” (JM Keynes)
• It is NOT a storage capacity for accumulated information
Need to treat electronic & paper repositories as intermediate storage for info in transit “between” peoples’ heads
Knowledge Management – understanding the nature of knowledge
Explicit = articulated in formal language
Tacit = personal knowledge embedded in individual experience (includes beliefs, perspectives, instinct, values) Most organizational knowledge is tacit and destined to remain so
Conveying knowledge is about building a bridge between a knowledge seeker and provider
Knowledge Type
Management Challenge Best Transfer Mode Timing of Transfer
Explicit Quantity & Accessibility Electronic (efficiency)Synchronous or Asynchronous
TacitInterpretation &
ArticulationFace to Face (depth,
context) Synchronous
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Knowledge Management Applications
• A model to demonstrate how knowledge is shared across the organization (Nonaka):
• 4 applications of knowledge management:
Intermediation – the brokerage of bringing those who seek knowledge to those that provide (may be real-time or transferred thru storage)
Externalization – the classification of knowledge in its external repository. The establishment of rules, methods for capture, storage and retrieval:
Internalization – the connection of knowledge to inquiry and the personal internalization of the knowledge through lens of personal experience
Cognition – process of making decisions based on individual’s knowledge ie. Its application.
DUPONT CONFIDENTIAL
Technology & Knowledge Management
Explicit Knowledge Tacit Knowledge
IntermediationPersonal Profiling Systems, Groupware applications (on-line meeting places),
Communities of Practice
ExternalizationDocument Management, taxonomies, visualization
Mentoring
Internalization Search and Retrieval Agents, Portals Apprenticeship
CognitionWorkflow, decision-support, decision trees, case mgt portals
Intuition
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Knowledge Management
26
Knowledge Transfer Strategy Types of Knowledge/Skills
Mentoring/Coaching Complex and sophisticated content. Interactive progressive learning. Critical skills
Critical Incident Review Specific and situational knowledge and experiences. Contextual complex knowledge. Critical skills.
Job Shadowing Hands-on practices. Complex content. Critical skills.
Storytelling Less structured. Effective for transmitting wisdom, emotional and relational knowledge and asset.
Communities of Practices Common problems, topics and issues.
Process Documentation Standardized repeatable process. Limited and special variations.
Job Rotation Skill broadening and enrichment. Complementary skill-set.
Expert System Problem specific. Trouble shooting, e.g. help desk.
Electronic Knowledge Management Systems
Knowledge that can be captured by texts or images.
Job Aids Standardized, simple, and limited variation content, e.g., checklist.
Tapping Retiree Base Experience-based. Client –relation. Best practices, e.g., online or video-conference
Reference: William Rothwell, IPMA-HR News, Feb., 2004
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Align learning needs with business objectives. Build curriculum
Developing culture of learning incl competency metrics and linkage to KPIs
Planning and delivering learning thro’ appropriate delivery mechanism
Building, buying and reusing learning content
Learning and Development Process
PLANNINGPLANNING
DESIGN & DEVELOPMENT
DESIGN & DEVELOPMENTADMINISTRATIONADMINISTRATION
DELIVERYDELIVERYCONDUCIVE ENVIRONMENT –M’MENT SYSTEMS
CONDUCIVE ENVIRONMENT –M’MENT SYSTEMS
Enabling learning management incl. tracking and measurement
Levels of Learning
Proficiency
Make decisions, Use judgment,Apply Experience,
Applies the knowledge in day-to-day operations
Is aware of the basicsKnows his roles and Responsibilities
Delivery Methodology
Simulation, On-the-job Application,Rich contentCoaching / quality critique
Engaging involvementPractice activities provide feedback
Engaging involvementRetention / “refresher” activities
Champion/Specialist
Skills
Knowledge
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An Integrated Approach
30
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Work/Life balanceProductivity
Engagement/Social Support
CompetencyCapability
MotivationAttitude
Physical/Functional Capability
Growth/ Learning
• Offer work extension • Re-careering options• Re-training• Flexible work organizations
Source: DuPont Sustainable Solutions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
31
Variation of Preference for Work-Life Balance by Age
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Examined employee health care costs and
absenteeism over a 2 year period5:
• No significant differences in health case
costs
• Significant negative association between
participation and absenteeism;
• Cost savings of $15.60 for every dollar
spent on the program
Worksite Health Promotion Programs Yield an
Average Return on Investment of Nearly $4 for
Each $1 Spend on Direct Health Care Costs1
Reduce the Cost of Absenteeism by $5 got
Every $1 Spent
In 22 Studies reviewed – the average ROI
was $5.81 per dollar spend on the program4
Workplace Health Promotion
32
Review of 42 Published Studies of Worksite
Health Promotion Programs Shows2:
• Average 28% reduction in sick leave
absenteeism
• Average 36% reduction in health costs
• Average 30% reduction in workers’
compensation and disability management
claims costs
• Average savings of $5.93 for every $1
spent
Harvard Business Review3 “Fruits of Workplace
Wellness”
• Lower Costs – Claims $1,5000 higher in
non participants (H-E-B Supermarket
Chain); Moving 10% of employees from
high/medium risk to low yields ROI
estimate of 6 to 1
• Greater Productivity – Lost productivity
costs 2.3x higher than medical & pharmacy
costs
• Higher morale – no data
1. Anderson, E. Wellness Councils of America, 2002. 2. Aldana SG. Financial impact of health promotion programs: a comprehensive review of the literature. Am J Health Promotion, 2001; 15(5):296-320. 3. Berry, Mirabito & Baun, What’s the Hard Return on Employee Wellness Programs? Harvard Business Review (Dec 2010). 4. Naydeck, BL, et al. 2008. The impact of the Highmark employee wellness programs on 4-year healthcare costs. JOEM:50:146-156. 5. Aldana, SG, et al. 2004. Financial impact of a comprehensive multisite workplace health promotion program. Preventive Medicine; 40;131-137
Source: Source: Goetzel and Reuters, Value in Health Care, Institute of Medicine (2010)
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
An Integrated Approach
33
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Work/Life balanceProductivity
Engagement/Social Support
CompetencyCapability
MotivationAttitude
Physical/Functional Capability
Growth/ Learning
• Cultivate communities• Use team approach• Understand
generational attributes• Embrace differences -
no right or wrong
Source: DuPont Sustainable Solutions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
The Power of Networks….from Talking Shop to Learning Shop
• Generation Y get it
• They exist anyway – harness them
“Communities” already exist – the “grapevine”, informal networks – built on trust
Need to recognize, support and administer the connections (managed badly they undermine formal structures)
• Clear objectives , less clear outcomes
• Strict ROI measurement is kryptonite for networks
Networks: A Case Study – DuPont Corporate Electrical Safety Team (CEST)
35
Objectives Deliverables Critical to Success
Key Themes/Characteristics
Zero Injuries from Electrical Hazards
Best Practice sharing
External perspectives
• Continuous Improvement & Change Management
• Defined workstreams, SMEs as members
• Knowledge Intensity & Institutional Memory
• Engagement
Zero Incidents involving electrical energy
Analysis of KPIs Flexible structure/ Membership
Discovery Performance Dashboard – esp. leading indicators
Institutionalizing Memory
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An Integrated Approach
36
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Work/Life balanceProductivity
Engagement/Social Support
CompetencyCapability
MotivationAttitude
Physical/Functional Capability
Growth/ Learning
• Re-careering incentives• Offer blended performance incentive
options• Track performance
Source: DuPont Sustainable Solutions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
37
Effort is not determined by generation
Source: Managing Generation Y in the Workforce: Corporate Executive Board: Asia HR Executive Board 2011
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38
Highest Rated Job Preferences vary little by generation
Source: Managing Generation Y in the Workforce: Corporate Executive Board: Asia HR Executive Board 2011
Intrinsic (Internal)
• Motivated by personal inner drive: personal growth, personal values, beliefs, attitudes
• Attend a course for the commitment to learning (a carrot)
Extrinsic (External)
• Motivated by external factors: prestige, money, success, promotion
• Attend a course for the benefit brought about by a qualification or compliance (a stick)
Two types of motivation
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An Integrated Approach
40
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Work/Life balanceProductivity
Engagement/Social Support
CompetencyCapability
MotivationAttitude
Physical/Functional Capability
Growth/ Learning
• Integrate S&H promotion/screening
• Offer incentives for wellbeing programs
• Provide healthy work setting/schedule
• Match functions and capabilities
• Target risks• Work re-design
Source: DuPont Sustainable Solutions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
What is aging?
Aging is a multidimensional process of physical, mental, psychological, and social change.
41
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Implications of Aging Workforce
42
Physical Capacity Mental Capacity• Maximum strength peaks at age 20-30• Reduced flexibility, balance, increased
reaction time• Older adults work closer to their
maximum capacity• Slow recovery
• Tests showed that learn and recall slower
• sensitive to socioeconomics, • not translating well to work performance
• Other factors that influence performance of older workers
• work engagement• working relationship • Interest in learning new things
Advantages of Older Worker• Attitude and Ethic• Experience and Judgment• Flexibility
But then,
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Generational Attributes and Workplace Adaptations
43
Traditionalists1928 – 1945
Boomers1946 – 1964
Generation X1965 -1981
Generation Y/Millennial1982-2000
Leadership Command andControl
Get out of the way Coach Partner
Learning Style Classroom Facilitated Independent Collaborative/networked
Decision Making Seeks approval Team informed Team included Team decided
Feedback No news is good news
Once a year Weekly Immediate/on-demand
Views of Authority
AutomaticRespect
Love/hate Not intimidated Impatient
Technology Use UncomfortableAvoid if I can
Unsure Unable to work without it Unfathomable if not provided
Job Change Unwise Sets me back Necessary Part of my career routine
Particulartrait
ConservativeLoyal
Strong work ethic Independent Conscious of globalizationEmbrace diversity
Training Additionalrequirement
Not too much Required to keep me Continuous and expected
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…it needs an approach that puts people at the center
Source: DuPont Sustainable Solutions
People• Generational attributes• Value and expectations• Ethics, Culture,
Background• Sub-Cultures
Work/Life balanceProductivity
Engagement/Social Support
CompetencyCapability
MotivationAttitude
Physical/Functional Capability
Growth/ Learning
Source: DuPont Sustainable Solutions 44