1. Mercuri Urval Founded in Sweden in 1967 1,000 staff in 25 countries
Work with organisations to help them achieve sustainable business results
Through identifying, selecting, developing and retaining the right people

2. The “GFC” Every sector has been impacted
A massive and sudden change in the business environment
Doom and gloom prophesies
But …….
Change brings both challenges and opportunities
Take a few moments to think about how your own business environment has changed in the past 18 months????

4. Insert Newspaper article headlines here

5. Some Effects of Downturn on Professional Service Firms
Clients taking more work ‘in-house’
Clients demanding greater returns for their fees – more output, better quality, lower prices
Less activity for clients means less need for services
Work that is available is less interesting – no big exciting projects
Greater time and resources required to win new work and keep current clients
Severe reductions in revenue across many (but no all) areas
Pressure on firms profitability

6. Common Reactions
Reducing overheads – administration staff, corporate office support, discretionary spending, travel, entertainment
Cutting business investment – marketing, training and professional development, IT systems upgrades
Reduced remuneration – bonus pools cut, dividend distributions cancelled, salary freezes and reductions, reduced hours, tighter control of ‘perks’
Reduced headcount – redundancies, stricter performance management, not replacing staff and partner turnover
Structural changes to drive greater efficiency in delivery – doing more with less

7. And the ‘Hidden’ Costs ….
Partners and employees working longer hours with less billable results
Economic uncertainty leading to higher stress levels and lower productivity
Survivor syndrome – staff remaining after a redundancy program feel shell shocked and insecure
Lower bonus pools can lead to senior partners delaying retirement
Glass ceiling as partnership promotion opportunities decline and ranks of associates begin to swell
Less interesting work available – talented people feel bored and under valued

8. And the ‘Hidden’ Costs ….
Short term focus by management – fewer discussions or planning for future due to focus on current revenue and challenges
Employees at all levels can become disengaged, losing motivation and loyalty to the firm or the client
Less client work can lead to less contact with clients impacting relationships

11. GCF Impacts (final)
The GFC will be a (relatively) short term pause in global and Australian economic growth
Changing clients expectations/demands, new organisational dynamics, and cultural impacts on employees and managers will result in significant and permanent structural changes for professional services firms
For many firms, the impacts of the GFC – and how they manage the crisis – will have long term and lasting effects on their business capability

12. Some Thoughts on Development
Individual development and motivation
The Path to Partner
Developing Organisation Capability

13. Individual Development
Development is a key factor in employee retention, often cited as more important than financial rewards.
If there is pressure on salaries and bonuses, development opportunities become even more important.
Development is a continuous process, and must be constantly reinforced so that skills and experience retain their value.
Development can be costly, and limited development budgets need to be targeted in good times and bad.
Adults learn best through learning on the job or through practical application of knowledge to a real task or project

14. Development is a Continuous Process

15. Development is a multiplier
Development is a multiplier. The value of new skills, knowledge and experiences applied in a work environment will far outweigh the upfront investment in time and money

16. Path to Partner
Professional services firms still tend to display a hierarchical approach to organisation structure
Steps toward Partnership are often linked to time in employment, qualifications attained, or skills demonstrated – these are lagging indicators of capability
Recent research indicates that many talented employees are no longer motivated by a structured, controlled career path
Development that broadens skills, creates interesting opportunities and supports individual motivation is often preferred

18. Align the team with strategy and processes
Building Organisational Capability
Developing capability is a long
term process
Multiple options and opportunities available
Long Lasting Results
Align the team with strategy and processes
Gap
Outcomes are long lasting
Team Capabilities
Strategy

19. Opportunities in a Downturn? …..and planning for the Upturn!

20. Opportunities Business restructuring to create improved efficiency
Re-defining value in existing client relationships
Opportunities to hire at realistic salary levels
Developing new service offerings or entering new market segments
Communicating and engaging with employees to build loyalty

22. Why Plan for the Future The market will improve
Your clients are planning for the future
Your competitors are planning for the future
Your EMPLOYEES are planning for the future!

23. A Strategic Approach to Development
Long Lasting Results
Gap
People Capabilities
Strategy

24. 1. Define future needs: Client new demands New business opportunities
Future capabilities required

25. 2. Identify Critical Top Talent:
Who has ability & potential to deliver?
Who owns the client relationships, the business IP?
Identify flight risks, motivations, expectations
What are the strategic capability gaps?

26. 3. Targeted Development Communicate the new strategic direction
Personal development planning based
on business priorities and individual needs
Fast track FUTURE Key Talent
Strategic recruitment to fill gaps
Develop leadership ability
Keep promises

27. A Strategic Approach to Development
Targeted development
Communicate the new strategic direction
Personal development planning based
on business priorities and individual needs
Fast track future key Talent
Strategic recruitment to fill gaps
Develop leadership ability
Keep promises
Define future needs:
Client new demands
New business opportunities
Future capabilities required
Long Lasting Results
Identify Critical Top Talent:
Who has ability & potential to deliver?
Who owns the client relationships, the business IP?
Identify flight risks, motivations, expectations
What are the strategic capability gaps?
Gap
People Capabilities
Strategy

28. Shane Herbert – Director