Talent Management & Succession Planning Version 07.16
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This manual is produced as the guideline for Talent Management & Succession Planning in Makro. Hence, it’s comprised of theories, concepts, processes and tools both widely applied and customized for Makro. We put all processes in sequence starting from identifying definition and scope of Talent Management, assessing, selecting, developing those Talents to assessing them against position profiles to identify Successors, develop and evaluate them accordingly. However, for Y2016, we decide to start our Talent Management & Succession Planning by implementing the plan and process to strategically manage our people who were previously identified “Successors� of management, focusing on successors of Top20 (Director level and up) as a pilot group. Talented employees and successors of other management level (Associate Directors and Senior Managers) will be assessed and identified in due course.
People Department May 2016
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Overview
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Introduction To succeed in the increasingly competitive and complex economy, the talented employees are the critical resource for the organizations. They need to manage, retain and drive these people to achieve the best possible results. However, few organizations today have an adequate supply of talent. Gaps exist at the top of the organization, in the first- to mid level leadership ranks, and at the front lines. Talent is an increasingly scarce resource, so it must be managed to the fullest effect. What is Talent Management? Talent management is the processes and tools to ensure that the organization can • Define the "right" people, • Maximize performance and potential and • Retain talents The Talent Management process aims to create a WIN-WIN-WIN scenario: Win for Individual, Win for Manager and Win for Company.
WIN for Individual Talent Management can help each individual… • Fill Competency & Capability gaps • Grow in his or her career
WIN for Manager
WIN for Company
Talent Management can help each manager… • Build a stronger team • Develop a successor to ensure a solid leadership pipeline when the manager moves up • Attract the best people to the team
Talent Management can help each company… • Attract external talent to the company • Retain the best people • Reduce cost of recruitment • Increase productivity & performance
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Talent Management Framework
Talent management is the systematic identification, development, engagement, retention and deployment of the individuals who are of particular value to an organization in view of their ‘high potential’ for the future growth of the organization.
including critical roles and talents for the pool - Assess competency gap Identify for development plan
- Place talents to the
Engage
right positions in accordance with the established Succession Plan for high potential leaders and Career Plan for individual talent - Review pay position for talents
- Develop appropriate development program to fill the competency gap Develop
Manage, - Set fixed schedule Monitor and and process to regularly Evaluate review, monitor and evaluate talents - Continue to manage talents with appropriate reward and recognition for retention
Overview
- Identify talent demand
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Talent Mgt & Succession Planning
Talent is the employee who has good performance with potential assessed by “Potential - Performance Grid” (9 cells*) From the talent pool, the “right” Talents will be identified to be successors to fill the pipeline of the following roles; • Key positions • Top Management (Top40) • Critical roles • Positions with retiring incumbents • Positions with scarce skill set • Critical Persons • Persons not in critical roles but risky to lose and have difficulty to replace due to notable experience
What we want to be? What we are today? • We want/try to groom Talent internal • But, when Key position is vacant • Our talents are not ready • We then buy an experienced person from external……
* Only top 3 boxes
Talent Successor
Successor
Overview
Talent
Grow talent and build successor internally.
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Current Situation @Makro
During 2014-2015, 21% (38) of Makro management were externally hired while 24% (45) promoted from within.
Management Positions (184) Internal Promotion (45), 24%
Top20, 4
External Hire (38), 21%
Top20 (4)
Top200 (HO), 21
Top 40 (5)
Top40, 5
Top 200 (29)
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1 2
2
3
1
3
11 3
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Overview
(101), 55%
Top200 (ST), 8
CEO CFO - Finance & Shared Services COO - Commercial, Marketing and Supply Chain COO - International Group COO - Sales & Operations, Customer Development and Construction & Facilities
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Phase I: Talent Management Process Map The below is the sequence of activities and of which outputs expected from Talent Management process at Makro:
Define scope
• Talent definition Expected Outputs • No./% of
talents • Priority and focus
Main Activities
Management decision based on business needs in the future
Nominate & Assess
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• Talent Candidates List • Potential & competency gap 1.Nominate & review Talent candidates from each function 2. Assess potential, competency gap including other dimensions through “LOVE”
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Identify
• Talent pool
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Develop
Evaluate & Engage
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• Development • Evaluation tools plan • Pay Position Review
Identify by 1.Select 1.Career potential evaluation tools Development performance 2.Agree pay Discussion grid (9 cells) position for with Talent Talent 2.Develop IDP 3.Conduct pay for each review to talent address pay gaps 3.Design appropriate program
Overview
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Phase II: Succession Planning Process Map Succession Planning starts with identifying roles/ positions in need of successors and qualifications required for the future success of the future job holders. Potential successors will be selected from the identified talent pool and assessed, developed, evaluated & engaged through the below process.
Identify
Expected Outputs
Main Activities
• Key positions • Critical roles • Critical persons • Position Profile
Management decision based on business needs in the future
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3
Select & Assess
• Succession plan • Job-fit gap analysis & readiness level of each successor
1. Select & review possible successors from Talent pool 2.Evaluate individual successors against position profile
Develop
• Development plan
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Evaluate & Engage
• Evaluation tools • Recognition & Retention program
1.Select evaluation 1.Career tools Development 2.Develop Discussion with Recognition & Successors Retention 2.Develop IDP program focusing to the next role for each successor 3.Design appropriate intervention i.e. work project, job rotation, job shadowing, international assignment, etc.
Overview
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Phase I Talent Management
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1. Define Scope
Before we start the process, Talent@Makro has been defined with clear company goal and priority to focus in each year.
Goal
Priority & Focus
No./ % of Talents
To ensure we have right supply of talented workforce to be ready to strategic goals of the organization both today and in the future. Talent Management program is then for Development Purpose, No Promotion Guaranteed. 2016 Top20 < Successor
Top40 > Talent
2017
Top40 < Successor
Top200 > Talent
2018 Top200 < Successor
Middle Management > Talent
High performers with potentials 10-15%
Talent Management
Definition
Talent is an individual who are consistently high in performance and also possesses high potential to rise to and succeed at a more senior/critical role, vertically or laterally.
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2. Nominate & Assess Criteria to nominate & assess Talent comprises of 4 factors “LOVE”; leadership, Outperform, Values and Energetic.
LOVE
Leadership
Criteria
Values
Definition
Energetic
Assessment items
(People Mgt)
Guide people and organization to the right direction
Leadership Competencies
Outperform
Surpass in excellence of performance
Performance rating (PMP)
Live in CPG’s corporate culture
Values
Eager to energize oneself and others for sustainable improvement
Attributes Agility Mobility
Leadership
(PMP) Talent Candidate
Outperform
Values (VICTORY)
Energetic
Talent Management
Nomination Form
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3. Identify: Performance – Potential Grid (CPG 9 Cells) Final Talent candidates will be identified by 9 cells. Those who fall in box no.9, 8 & 7 will be considered “Talent” and “Potential Successor Candidates”
Talent Pool
Talent Management
CPG 9 Cells
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4. Talent Development Framework (12 months) Talent will go through the development process following the framework once they have the discussion and creating IDP with their line managers/ senior management. (Suggestions & Tips for Discussion are referred to Career Development Discussion Section.) Month 2-11
Month 1
Month 12
Module 1
Module 3
Leading Self
Leading Business (MBA Program) Business Impact Projects (Innovation, CP Synergy)
Sign on Module 2
Leading People (MBA Program)
Sign off Module 4
Leading Change
Step Up Programme Mentoring/ Coaching Project Sponsor & Line Managers’ Support External Coaching for Successors
Post Development: Broad & Blended Learning (optional)
Cross Functional
Action-learning Project
i.e. ALP, BLP, SLP
Broad & Blended Learning
Global Connections
Talent Management
• Knowledge i.e. MBA • Rotation i.e. ASGM rotation to Commercial before promoting to SGM
i.e. Chairman Project, Makro Project
CPG based Learning (CPLI)
i.e. INSEAD, Wharton, Harvard 14
5. Evaluate & Engage
To ensure Talent keep performing and take ownership of their self development, we need to monitor their progress regularly and also need to properly manage them to maintain their engagement with the company.
Engage
Talent Management
Evaluate
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Talent Profile Template
Talent profile will be kept in the below format for various purposes i.e. development purpose, rotation opportunities, next Talent review, etc.
Readiness against Success Profiles Possible Position:
Name: Position:
Readiness Level:
Div / Dept: YOS in Current Role: Personal Details
Educational Background
Career History in Makro
Age:
Xx xx xx
•
Xx
•
Xx
•
xx
Training & Development Experience
Career History prior to joining Makro
• • •
•
Xx
•
Xx
Family status: PM Score: Y2015: Y2014: Y2013: English Score: Mobility:
KPI Key Achievements
Xx Xx xx
Professional Exposure/ Experience • International Exposure:
• xx Leadership Behaviors/ Values
Technical/ Functional skills
• Exposure to other function: • Project / Assignment:
Areas for Development
Career Aspiration • Short Term
• Long Term
Talent Management
Strengths
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Phase II Succession Planning
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Phase II: Succession Planning Process Map Succession Planning starts with identifying roles/ positions in need of successors and qualifications required for the future success of the future job holders. Potential successors will be selected from the identified talent pool and assessed, developed, evaluated & engaged through the below process.
Identify
Expected Outputs
Main Activities
• Key positions • Critical roles • Critical persons • Position Profile
Management decision based on business needs in the future
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3
Select & Assess
• Succession plan • Job-fit gap analysis & readiness level of each successor
1. Select & review possible successors from Talent pool 2.Evaluate individual successors against position profile
Develop
• Development plan
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Evaluate & Engage
• Evaluation tools • Recognition & Retention program
1.Select evaluation 1.Career tools Development 2.Develop Discussion with Recognition & Successors Retention 2.Develop IDP program focusing to the next role for each successor 3.Design appropriate intervention i.e. work project, job rotation, job shadowing, international assignment, etc. 18
Succession Planning
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1. Identify The purpose of Succession Planning is to prepare future leaders for the leadership roles and important positions of the company. To start the plan, key position, critical roles and critical persons need to be identified. The position specification for future success in the roles i.e. future challenge of the role, education background, experience required, skills required etc. also need to be determined to develop position profile of those roles.
• Top Management • Chief • Sr.Director • Top20 • Top40 • Top200
Succession Planning
Critical Roles (Business Impact)
Critical Persons (Risk to lose)
• Positions with retiring incumbents • Positions with scarce skill set • i.e. Canvass, MRA
• Persons not in critical roles but have difficulty to replace due to notable experience
1. Succession Planning 2. Backfield
Retention Program
Position Profile • Education Background • Experience required
• Future Challenges to cope with • Expected Behaviors/ Values • Expected Level of Competency • Expected Technical/ Functional Skills
Succession Planning
Key Positions
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Position Profile Template (for Future Success)
Position requirement will be kept in the below format. Possible successors will be selected from the Talent pool and assessed against the position profile.
Position: Job Purpose: Future Challenges: Key Responsibilities:
Education Qualification:
Professional Experience: • International Exposure:
• Exposure to other function:
• Project / Assignment:
Technical/ Functional Skills:
Other Key Considerations: Personal Attributes that impact success:
Other factors:
Succession Planning
Leadership Behaviors/ Values:
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2. Select & Assess Possible successors will be assessed against job requirements to find the gap and readiness level to take on the defined roles.
Position
Person
VS
GAP Analysis
Readiness Level
1 Completely match requirement
1
Ready now, close fit with the job description for identified position/ role
2 Somewhat match requirement
2
Ready in 1-2 years: some gaps with the job description for identified position/ role
3 Does not meet requirement
3
Ready in more than 3 years: significant gaps with the job description for identified position/ role
N No data
Summary of Successor Readiness Sample
Succession Planning
*
R1 R2
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3. Develop
At this step, the development of potential successors will be planned based on their gap analysis and career discussion with line managers or senior management. (Suggestions & Tips for Discussion are referred to Career Development Discussion Section.) The below is the recommended approaches to develop successors at different readiness level. Recommended Development Approach Successors
Classroom Training
Job enrichment/ enlargement
Project Assignment
Job rotation/ move
Ready now
O
O
R
O
R
R
Ready in 1-2 years
R
R
R
R
O
R
Ready in more than 3 years
R
R
O
O
Job Mentoring Shadowing & Coaching
O
Career Development plan is not a promise for promotion; a precise timetable; a vertical career move only; a strict roadmap to be followed blindly. The plan should be regularly reviewed and updated in accordance with the companyâ&#x20AC;&#x2122;s strategic direction.
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Succession Planning
R= Required O= Optional
Successor IDP Form IDP of each successor should be created after the discussion between senior management/ line managers and successors. Individual Development Plan Focus for Development (consider both current and future roles) Certifications/ Professional Qualifications/ Training & Development Experience required
Development Gaps & Proposed Development Activity
Completed Expected Outcomes
Priority
Timing
Review Comments Y/N
Date
Type of Professional Experience/ Exposure required Leadership Competencies Job Competencies
Other Critical Knowledge/ Skills
Sample Successor IDP
Succession Planning
Expect ed Outco mes
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4. Evaluate & Engage
Tools and practices to monitor, evaluate and engage those successors are the same as those applied for Talent
Engage
Succession Planning
Evaluate
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Career Development Discussion
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Career Development Discussion
All Talents and Successors are recommended to have discussion with line managers or senior management to clarify their career aspiration, realistic action plan and the alignment with the company’s current and future direction.
Why Career Development Discussion?
• Growth of skills and experience to meet business needs • Encourage coaching culture within the Makro • Increased talent engagement
Talents
• Improved self-insight • See a future for themselves in the business • Increased job satisfaction and motivation
Career Development plan is not a promise for promotion; a precise timetable; a vertical career move only; a strict roadmap to be followed blindly. The plan should be regularly reviewed and updated in accordance with the company’s strategic direction.
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Career Development Discussion
Makro
Career Development Discussion (Cont’d) Suggestions for Action Set up time with each Talent (45-60 minutes) to discuss career interests and goals. Listen to his/her career aspirations and ensure that he/she is aiming high enough. Some people do not set goals that are consistent with their capabilities. • Review Talent’s strengths & weaknesses to jointly identify the training or skill upgrading programs suitable to him/her. • Develop plans to help Talent define his/her short-term and long-term career goals and establish a path to these goals. • Set reasonable intermediate goals. A series of small wins will keep Talent motivated
Try the following questions to better understand your Talent: • What does Talent really enjoy doing at work? • What parts of the work make Talent energetic and enthusiastic? • What are their goals and why? • What are the key challenges Talent currently face in his/her role? • How willing is Talent to take risks to change and take on new roles? • What kind of opportunities within Makro would excite him/her?
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Career Development Discussion
After discussion, Talent’s career aspiration and action plan to be recorded in PMP form (Part 3).
Career Development Discussion (Cont’d)
Tips for the success
Explain the requirements (skills, qualifications, experience, competencies, behaviours etc.) of each step of the career path – “what is required to move to the next level?” Discuss how the employee can fulfill these requirements.
Focus on developing their skills, coaching them and giving them onthe-job assignments that will prepare them for these opportunities, nominate them for cross-functional, cross-BU or overseas programs where appropriate. Think beyond linear career progression and include lateral moves and the development of adjacent skills. This can greatly increase an employee’s value to the business and provide him/her with rewarding new career experiences
Show your commitment to employee development by checking in with your employees regularly regarding their career goals and plans. Remember to inform them of any relevant internal opportunities of which you are aware of.
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Career Development Discussion
Rotate employees temporarily into different job roles / functions / BUs / locations to provide employees with on-the-job cross-training and exposure to new challenges.
Action Timeline
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Action Timeline for 2016 In 2016, we decide to start our Talent Management & Succession Planning by implementing the plan and process to strategically manage our talented people who were previously identified “Successors” of management, focusing on successors of Top20 (Director level and up). Below is the timeline of activities to complete in Y2016:
Confirm/ review nomination list (Pilot) • Select, Assess & Review Talent and Possible Successors Develop Talents & Possible Successors
Jan
Feb
Mar
Apr
May
Jun
Mid-Year PMP
Jul
Aug
Sep
Oct
Nov
Dec
• Year-End PMP • Mentors/Sponsors review the progress of project/ learning of Pilot Group
• Mentors/Sponsors review the progress of project/ learning of Pilot Group • Review & update Talent & Successor List
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Success Factors To succeed in managing Talent pool and succession plan, we should take the below points into consideration:
Identify • Clear scope of talent management, succession planning, critical roles, critical persons, etc. • Clear communication to Line Managers & Senior Mgt. • Proper training for Line Managers to assess, develop, evaluate & engage talents and possible successors Assess • Clear understanding of SHV/ CPG Competency Set & definition (refer to potential assessment, p.11) • Competency scale/score/level to be used for assessment and cutting score • Identified Functional Competency Set & definition to assess talent candidates and possible successors • Complete position profile of each identified key & critical position (+JE) for succession planning Develop • Career Discussion with talents & successors • Full ownership of talents & successors on their development • Strong involvement & support from Line Managers & Senior Mgt. Evaluate & Engage • New PMP applied > clear communication from the start • Pay review & retention program (competitive & attractive compensation, etc.) • Career Plan (i.e. job enlargement/enrichment, rotation, job shadowing) vs. Talent Loss
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Timeline for Implementation# Batch 2016
No.
Task
Accountable by
Q1’16
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Develop talent mgt & succession planning framework
2
Get approval from EBD on Talent Framework
3
Confirm Successor/ Talent list / new nomination
BP
Chief
11-22 Apr
4
Identify critical roles, critical persons
BP
Chief
11-22 Apr
5
Backup List of critical roles & critical persons
BP
Chief, LM
11-22 Apr
6
Develop position profile of Top20 & not Top20 if Successors identified
BP
Chief, LM
18-26 Apr
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Develop Successor/ Talent IDP
BP
Chief, LM
21-29 Apr
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Prepare Successor/ Talent Profiles for EBD
OD, HRIS
25-29 Apr
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Consolidate Critical roles, Critical persons, Backup list
OD
25-29 Apr
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Consolidate Position Profiles
OD
3-6 May
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Consolidate development plan for Successor/ Talent
OD
3-6 May
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Propose talent pool, possible successors & development plan to EDB
HR Director
9 May
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Introduce “Step Up” & Mentoring & Coaching training for selected coaches/ mentors
Cap Dev.
May
14
IDP Analysis, Propose development solution & Implement development plan
Cap Dev.
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Development Progress Review in EBD
HR Director
OD
18 Jan 28 Feb
HR Director
29 Feb
Q2’16
Q3’16
Q4’16
Q1’17
Q2’17
May’16 – Oct’17 26 Sep
Nov
Jun
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Appendix
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Nomination Form
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IDP Form & Sample
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Backup Form for Critical Roles & Critical Persons
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40
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Position Profile Template
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