creating sustainable change through organizational alignment and managing an increasingly diverse...
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Copyright © 2008 Accenture All Rights Reserved.
Creating Sustainable Change through Organizational Alignment and Managing an Increasingly Diverse WorkforcePeter Cheese, Global Managing Director, Talent & Organization Performance, Accenture
NASSCOM India Leadership Forum 2008, Mumbai
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Economic – economic power is becoming more dispersed
• Growth of emerging market economies and multinationals
• Growth of multi-nationals in emerging markets
• New generational norms
Social – dramatic social change• A billion new customers will enter the global marketplace
• Climate change is seen as a reality and is driving changes in technology, regulation and investment
Technology – technological labor is no longer the preserve of developed economies
• Industrialized world is witnessing a shrinking pool of young skilled employees
• Governments of emerging economies are aggressively pursuing policies to move up the value chain
• Emergence of technology clusters and the global supply chain
Global market forces are leading to talent management and workforce challenges
Demographic challenges• Aging workforce
• Increasing female participation
Retaining and motivating the
workforce
• Increase in occupational mobility and work-life integration
• Growing polarization of workers
Skills crunch
• The rise of the knowledge economy
• A middle management gap
• Importance of skilled workforce from emerging economies
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For the first time in history, four generations are in the workforce. Each generation has distinct characteristics and necessitate specific approaches to managing talent.
The talent management and alignment challenge is compounded by multiple generations in the workforce
Tenure
Silent Gen1
(1925 – 1942)
Baby Boomers1
(1943 – 1960)
Net Generation2
(1982 – 1998)
RetirementEntry into Workforce
Source:1 Howe, Neil; Life Course Associates, 2007. 2 New Paradigm – Net Generation Strategic Investigation; 2007; co-sponsored by Accenture
Generation Y
Generation X1
(1961 – 1981)
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“… this generation is bigger than the baby boom itself, and through sheer
demographic muscle they will dominate the twenty-first century.”
—Wikinomics, Don Tapscott
The sheer size of the Net Generation cannot be ignored
Source: New Paradigm – Net Generation Strategic Investigation; co-sponsored by Accenture
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Considerable Majority1 of Employees Understand Strategic Priorities
Considerable Majority1 of Employees Understand Their Contribution to Strategic
Execution
Agree 12%
Disagree 88%
6% Agree 17%
Disagree 83%
A Gallup survey of 3 million employees…
Engaged 29%
Not Engaged 55%
Actively Disengaged
16%
Accenture HPWF Study 2006
Engagement and alignment – what are the issues?
Declining loyalty and job satisfaction
• Falling employee loyalty and engagement, 5th year of decline (FT Nov 04)
• Key factors for people leaving work - lack of opportunity (37%), lack of incentives (28%), dissatisfaction with the corporate culture (28%), and lack of recognition or praise (25%) – Martiz Poll, World at Work Nov 06
Increasing lack of alignment
• As little as 5% of employees understand the corporate strategy (Kaplan and Norton 2004)
• 88% don’t believe most employees understand their firms strategic priorities (HPWF Study 2004)
Different Values of Generation Y
• Different value sets – life of jobs vs jobs for life, balance of life, corporate citizen values
• Higher expectations on integrity, feedback, opportunity
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How well are we doing ?Key findings from the India High Performance Workforce Study
• Talent management – specifically the ability to attract and manage critical skills and leadership – emerged among the top 2 of 11 capabilities driving high performance
• Organizations by and large, are not equipped to manage and enable Change of the magnitude that is being experienced today
• Indian CEOs have rated the HR function as their most important workforce – but they believe there is a significant need to improve its performance
• A critical HR challenge - operation in a silo, with little support offered to and received from key workforces.
• HR needs to facilitate solutions to strategic business issues – Yet, the focus of HR today is on transactional activities potentially reducing the bandwidth for the transformational
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Extensive C-Suite involvement in their human capital management initiatives
Focus support to workforces in the more strategic talent management areas of Learning and Change management; compensation is not a differentiating factor
Leaders are able create burning platforms boosting the “perceived need for change”
Leaders use metrics extensively to evaluate HR performance
What distinguishes Human Performance Leaders from the rest of the organizations?
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Greater workforce diversity is the new norm and creates greater alignment challenges
Diversity today:
• Generational values
• Educational background
• Social background
• Ethnic and cultural diversity
• Geographic dispersion
• Type and style of working and learning
Leading to:
• Greater challenges for leadership at all levels
• Greater complexity of engagement
• Greater challenges for alignment and managing change
• Importance of alignment of values, measurement and objectives, organization, managing change etc
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Talent
Aligning the dimensions
Leadership
Technology andBusiness Processes
Culture and Organisation
Execution Alignment
Results
Strategy
Informal aspects of how and with whom work gets done,
foundational values, norms, assumptions
Business infrastructure & mission critical
processes/systems
Understanding of talent needs
Integrated talent management capabilities
top down driven talent mindset and culture
Personal effectiveness of leaders,
leadership teams/groups, and governance processes
Customers, value proposition,
key priorities
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• Experience is the best teacher of leadership
• Organizations can leverage experience and practice to grow more leaders, faster
• Leadership capability, particularly in managing people and diversity must be developed at all levels
• These behaviours and practices must be measured and rewarded
[coal]
[diamond]
Leadership Development
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Understanding what actions to take that will give the best chance of success
Clear direction
Commitment by leaders
Accountability
Engaged teams
High Performance
On Track
Unsustainable
Off Track
Insight + Action = Successful change
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New capabilities
A strategic and holistic view of talent management • clearly linked to business strategy and need
Expand the talent management agenda • to a broad and strategic focus on highly integrated systems and
talent management capabilities
New dimensions of talent management (examples)• New, more diverse talent supply chains
• EVPs and talent management support tailored to talent segments
• Technology enabled learning and job support, collaboration tools to support knowledge sharing and innovation
• Redesign of workflows to make best use of available talent
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Foundation of efficient and integrated HR operations and support
Foundation of efficient and integrated HR operations and support
Discover Your sources of talent
DeployYour talent at the right place at the right time
DefineYour talent
needs
DevelopYour talent potential
Metrics and Analytics
Talent Mindset
Talent Culture
Business Strategy
Business Strategy
Talent Strategy
Talent Strategy
• Strategic context and understanding of current and future talent needs
• Integrated talent management capabilities
• Applied by different segments of workforce as needed
• Sustained by top down driven talent mindset and culture
Need for an integrated and holistic approach
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The key imperatives - summary
Challenges are strategic and need a strategic response
Measurement and insight to drive actions and behaviours
Aligning culture and values, operating model, talent management, and leadership
Make leaders and line managers really accountable
Apply robust value and outcome measures to understand progress