Aligning Talent to Business Strategy Paul Kasimu Group HR Director, EABL Kenya Institute of Management Thursday 27th June 2013

Discussion Areas Organizational Issues High Performance Organization HR & Talent Strategy

"Organization doesn't really accomplish anything. Plans don't accomplish anything, either. Theories of management don't much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds." General Colin Powell Chairman (Ret), Joint Chiefs of Staff

Organizational Issues for Business Competitor challenges Managing people Delivering on customer promise Keeping up with technology Managing growth Compliance Shareholder return Legislation

Critical Organizational Capabilities Talent:  Attracting, motivating and retaining competent and committed people. Speed:  Making improvement changes rapidly. Innovation: Doing something new in both content and processes Learning:  Learning from successes and failures Accountability: High Performance orientation at all levels Efficiency:  Effectively managing costs. Collaboration:  Working across boundaries to ensure efficiency and leverage.

External Sensing:  Linking with external stakeholders Customer Connectivity:  Building enduring trust relationships with the targeted customers. Shared mindset and coherent brand equity: Ensuring that customers and employees have positive and consistent images of and experiences with the organization. Leadership:  Identifying, developing and embedding leaders across levels. Strategic Unity:  Articulating and sharing strategies.

Linking HR Agenda to Business Strategy Business Medium Term Plan Business Strategy HR Vision Employee Opinion

Key Themes on HR Strategy Deliver a High Performing Organisation (HPO) Create envied Employer Brand

High Performance Organisation Institutionalise customer ethos Attract & retain a diversity of talent Deploy superior talent to maximise value Leadership Capability Improved Performance Management Build and sustain core capabilities Organisation Designs

HPO Strategy HIGH PERFORMING ORGANISATION (HPO) AGENDA LEADERSHIP PERFORMANCE TALENT MANAGEMENT MANAGEMENT & ACQUISITION REWARD RECRUITMENT/INDUCTION/TRAINING … COMMUNICATION AND ENGAGEMENT APPROACH … IMPLEMENTATION THROUGH HR WORKING CLOSELY WITH LINE LEADERSHIP LEADER - LED CHANGE

Create an envied Employer Brand Employee proposition divided into: MACRO MICRO

Employee Proposition Competencies External environment Equality and Diversity strategy Employee relations environment Recruitment Learning and Development Reward and benefits strategy Comms & Public relations Performance management MACRO - All employees Well being programme Talent proposition External environment MICRO - One to one/ line manager delivery Disciplinary and Grievance Bonus Pay and benefits Employment policies Performance Development Exit Policy Leadership Talent plan Health and Welfare Medical Comms Succession planning

HR Strategy Customers HR Capability Employee proposition Behaviours Talent deployment Learning and Development Employment policies Equality and Diversity Perf Development MIS Recruitment processes HR Deliverables Wellbeing Exit policies- Comp redundancy & VER Reward and benefits linked to Perf Development HR capability Comms Employee proposition Businesses Priorities High Performing Organisation Employer Brand informs Group HR Driving and sustaining a High Performance Organisation (HIPO) MTP Busines Projects HR Strategy Employee opinion Staff Structure Strategy Skills Systems Style Shared Values Culture HR Capability

Factors driving Changes in Talent Management Economic factors The transition to a knowledge economy has transformed the way we value Talent, now required as a strategic asset Globalization driven by developing economies & emerging markets Skills gaps still exist as much as there is structural unemployment Demographic factors Generational geographies with a mixture of the retirement of baby boomers though more significantly growth of Gen Y and "z" in the workplace. Longer lifespans questioning the retirement of baby boomers Workplace diversity with an integrated lens on diversity & inclusion Technology Factors Increased expectations Digitization Telecommunications Source: "The Future of Talent Management: Underlying Drivers of Change" - Oracle White Paper, June 2012.

Talent Management – An Overview Defining our people requirements Talent Acquisition Performance Management Talent Development Retention & Reward Talent management: The anticipation of required human capital the organization needs at the time then setting a plan to meet those needs KEEP GET Talent management: 5 B’s Buy Build Borrow Bind Bounce GROW

Example of “Investing in Talent” strategy Methodology (To verify top talent) Development & Retention Tools Success Factors Mid year Appraisal conversations Functional Talent matrices Performance Talent Reviews (PTRs) and succession planning Spotlighting sessions by Exec End of Year performance rating calibration Talent Pool Succession Planning & PDPs Talent Spotlighting Talent Development Programmes Recruitment of mid career high potential talent to shock the system Project Teams & Appointments Talent development budget on: - Education Sponsorship - International Assignments Short/Long Term Reward Incentives 100% succession cover for all key roles 100% of the Talent to have specific development plans <1% regrettable losses 100% of the participants targeted will have at least Fully Meets rating

Talent Measures Human capital ROI Acceptance rate (%) Talent resignations (%) Development actions Internal promotions (%) Critical talent performance Pipeline and back up succession High incentive ratio

Trends in Talent Management Next generation leadership Developing future leaders is relevant now and in the next three years Organizations must seek a new leadership model for the age of agility HR executives still need to develop a different approach around development These strategies must be specific to the business Organizations must commit to getting the best results Accelerating organizational change The way in which organizations view change as a top trend. "In today's fast-paced environment, organizations need to adopt a new way of looking at change and become more results-orientated." The war to develop talent Shift to development and upgrading skills as a critical trend "As businesses struggle to fill critical positions at many levels, companies are putting renewed focus on building capabilities, not just finding them." Source: "Resetting Horizons: Human Capital Trends 2013" Deloitte 2013

Trends in Talent Management Boards are changing the HR game a growing number of boards are focusing on the role and impact of talent on business performance and risk. Organizations know that developing a strategy without considering the talent dimensions creates risks. Boards are recognizing that a business strategy often is a talent strategy. Transforming HR to meet new business priorities Organizations are developing HR capabilities that will not only support the business, but enable business strategy. To fulfill its new role in accelerating business growth, organizations are using HR transformation to design HR and talent systems that can work across geographic boundaries, creating a framework that is flexible enough to support different business models Source: "Resetting Horizons: Human Capital Trends 2013" Deloitte 2013

Trends in Talent Management Source: "Resetting Horizons: Human Capital Trends 2013" Deloitte 2013

Big Question: What will it take for you to shift the way you treat talent management today?