MERCER WEBCASTGlobal Mobility and Leadership Development21 October 2014

Kate FitzpatrickDavid Deegan

Principal Consultants

London – United Kingdom

MERCER WEBCAST 11

Today’s Speakers

Kate FitzpatrickPrincipal – Senior MobilityConsultant

kate.fitzpatrick@mercer.com+44 (0)20 7178 5653

David DeeganPrincipal – Leadership andOrganisational Performance

david.deegan@mercer.com+44 (0)791 777 8106

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Agenda

• Global Organisation and Leadership Model

• Exploring the Relationship between Global Leadership Development andMobility Strategy

• Hints and Tips for Aligning Organisation and Global Leadership Strategies

• Summary and Questions

21 October 2014

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Definition of a Global Leader

A Global Leader is one whoanalyses and synthesises data

and strategises and executes plans,while taking cultural and geographical issues into

consideration.

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Global Organisation and Leadership Model

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Global Organisation• Wide geographical reach

• Differentiating product/service range

• Brand known outside operating area

• Responsive to local requirements

• Adaptation is a challenge

• Regulatory variations are a hurdle

• Change is used to strengthen brand

Local versus Global Organisations

Local Organisation• Small geographical focus

• Limited product/service range

• Localised brand recognition

• Uniform operations

• Adaptation creates stress

• Regulatory variations are a barrier

• Change would dilute the brand

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Local versus Global Mindsets

Leaders with a Local Mindset• Resistant to adapting

• Uncomfortable with uncertainty

• Limited and/or stereotyped view ofculture

• Believe that curiosity creates problems

• Ask leading questions to maintainstatus quo

• Aim of reflection is justifying decision

• Preferring to work in comfort zone

• Uncomfortable/uninterested in feedback

Leaders with a Global Mindset• Learned adaptability

• Comfortable with discomfort

• Cross-cultural awareness

• Genuine curiosity

• Respectful questioning

• Honest reflection on experiences

• Constant self-challenge

• Seeks and receives feedback

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GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Time

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Local / Global Organisation

Globalisation ofOrganisation

GLOBAL - 10

TimeTHREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

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Local / Global Organisation

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Globalisation ofOrganisation

Time

ORGANISATION

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Local / Global Organisation

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Globalisation ofOrganisation

Time

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Local / Global Organisation

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Globalisation ofOrganisation

Time

ORGANISATION

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The Local Leadership Mindset vs Global Leadership Mindset

LeadershipMindset

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Time

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Global HarmonisationGlobal Organisation ahead of Leaders (eg. rapid expansion or globalintegration without home grown global leaders in pipeline)

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Maturity(Mindset and Org)

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Time

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ExodusGlobal Leaders ahead of Organisation (eg. downsizing / divesting)

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GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Time

Maturity(Mindset and Org) ORGANISATION

MINDSET

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InertiaGlobal Organisation ahead of Leaders (eg. long tradition of localmarket focus or resistance to change/growth)

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Time

Maturity(Mindset and Org)

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AmbitionGlobal Leaders ahead of Organisation (eg. growing the business)

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Time

Maturity(Mindset and Org)

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AlignmentGlobal Leaders and Organisation aligned at whatever is right for thebusiness

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Time

Maturity(Mindset and Org)

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Exploring the Relationship between GlobalLeadership Development and Mobility Strategy

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EXECUTIVE

MANAGER

GLOBAL EXECUTIVE

Mercer’s Research on Global Leadership DevelopmentHow companies approach international leadership

GLOBAL MANAGER

GLOBAL EXECUTIVE

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Mercer’s Research on Global Leadership DevelopmentGlobal leadership competencies

Global Skills

Motivate and leadmulticultural teams

Effective networker in newcultural environments

Cultural literacy

Baseline Attributes

Catalyticlearning capability

Sense ofadventure

Entrepreneurial spirit

Culturaladaptability

Global Mindset

Comfort with complexity

Opportunity identification

Systems thinking

Extended time horizon

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GlobalExecutivePassage

Passagefive

Passagefour

Passagethree

Passageone

Passagetwo

BaselineAttributes

GlobalMindset

Fullpackage

GlobalMindset

GlobalSkills

Leadership Pipeline: Charan, Drotter and Noel, 2000New Insights on Global Leadership Development, Mercer 2011

Mercer’s Research on Global Leadership DevelopmentKey learnings: Mobility experience for development along career stages

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Mercer’s Research on Global Leadership DevelopmentHow global leaders develop

International leadership development programme

Internationalassignments

Frequent travel

Multi-culturalteaming

Cultural training

Rotationalassignments

Coaching

Special projects

Mentoring

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Hints and Tips for Aligning Organisationand Global Leadership DevelopmentStrategies

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Validating Your Assessment

• Which picture do I have?

• How do I know it is right?

• What data can I gather to verify the picture?

• What does my picture tell me about the Talent strategy we needto employ?

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Gathering Support

• What is the impact of not doing anything about the picture we haveright now?

• What resistance will we encounter as we try to align?

• Who will be most resistant?

• Who do I need to share the picture with?

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Strategies for Closing the Gap

GLOBAL - 10

THREE YEARS FROM NOWRIGHT NOW

LOCAL - 1

Time

Maturity(Mindset and Org)

MINDSET

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What is Your Talent Strategy?By looking at patterns of entry and promotion throughout the hierarchy,one can tell whether an organisation is prone to buy or build its talent

HIRES

HIRES EXITS

EXITS

EXITS

EXITS

EXITS

EXITS

EXITS

EXITS

EXITSHIRES

HIRES

HIRES

HIRES

HIRES

HIRES

BUILD• Limited hiring at

middle and upperlevels

• Most entry pointsare at lowerlevels—limits touchpoints with themarket

• Focus on promotionto feed upper levelsfrom within

• Diffuse exit points

BUY• Diffuse entry

and exit points• Significant number

of hires at middleand upper levels

• Tend to see morehires thanpromotions

• Many touch pointswith the market

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Interpreting an ILM Map

Promotions

1616

8181

129129

134134

8585

383383

963963

830830

640640

517517

168168 17

49

123

184

227

86

11

72

125

190

312

116

7

6

4

8

5

3

HIRES EXITSCAREERLEVEL

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FemaleFemale Male

1,3821,382 244

1,7881,788 221

886886 331

306306 349

114114 273

1818 95

22 25

Interpreting an ILM Map with Two Dimensions

16% 15%

14%12%

12%5%

9%8%

3%4%

0% 9%

GETTING STARTED WITH METRICS

Average active employees

PROMOTIONS% OF AVAILABLE

NewHires

% ofTotal

100%

33% 67%

43% 57%

49% 49%

55% 49%

66% 34%

72% 28%

Exits % ofTotal

100%

48% 52%

41% 59%

49% 51%

60% 40%

34% 66%

54% 46%

9

8

6

10

7

5

CAREERLEVEL

4

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Workforce StructuresILM map shapes can tell you a lot about a company or divisionalstructure and career flows

PYRAMID DIAMOND BLOCK

GETTING STARTED WITH METRICS

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Identifying Critical RolesCreate a planned mix of experiences and pathways to destination roles

ORGANIZATIONALEXPERIENCES

EXP

ER

IEN

CE

SR

OLE

SD

ES

TIN

ATI

ON

MANAGEMENT EXPERIENCES

INTERNATIONALDIRECTOR

• Destination Roles• Pass through roles• Plateau Roles

MANAGED TO A BOTTOM LINE LED A FUNCTION SIGNIFICANTLY IMPROVEDA BUSINESS PROCESS

SUCCESSFULLY HANDLED ACOMPLEX ASSIGNMENT

SOLD XYZPRODUCTS AND SERVICES

MANAGED PEOPLE

INNOVATEDA NEW APPROACH

USED TECHNOLOGYEFFECTIVELY TO ADDRESS

NEW CUSTOMER NEED

ANALYZED FINANCIALSAND ASSESSED RISK

INCORPORATEDCUSTOMER FEEDBACK TO

IMPROVE PROCESS

MASTEREDCERTAIN SKILLS

CROSS-LOB

CROSS-FUNCTION

CROSS-GEOGRAPHY

WITHIN FUNCTION

?

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Global Leadership DevelopmentEffective Interventions

International leadership development programme

Internationalassignments

Frequent travel

Multi-culturalteaming

Cultural training

Rotationalassignments

Coaching

Special projects

Mentoring

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Summary and Questions

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Successful Inclusive and Strategic HR Collaboration

TALENT MANAGEMENT:Ongoing, inclusive and candid dialog about

skills, aspirations and experiences, andensuring effective global leadership resourceplanning and succession management in an

international context.

RESOURCING:

Structured,objective

recruitmentprocesses and

selectiontechniques to

ensure the rightpeople are

identified as havingglobal leadership

potential.

TOTALREWARD:

An integrated,aligned rewardstrategy whichdifferentiates,segments and

incentivises leadersin critical global

roles, whilst takingaccount of employee

choices.

GLOBAL MOBILITY:

Facilitation of strategic,inclusive and compliantdeployment of globallymobile staff, enabling

global leadershipdevelopment in line with

business strategy.

PERFORMANCE MANAGEMENT:

The core business process forcommunicating expectations, assessing

performance and moderating peer groups in away that supports your global leadership

development strategy.

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Further questions to ask yourself and the organisation

• How visible is the current global leadership development strategy?

• Are there clear and logical connections between the organisation’s strategyleadership strategy, and the global mobility strategy?

• Is every overseas assignment a proactive learning opportunity for ourleaders?

• Does every leader know how their development during an overseasassignment will have an impact on the bottom line?

• Is effective career development and succession planning in place forimportant destination roles?

21 October 2014

MERCER WEBCAST 36October 21, 2014

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Kate FitzpatrickPrincipal – Senior MobilityConsultant

kate.fitzpatrick@mercer.com+44 (0)20 7178 5653

David DeeganPrincipal – LeadershipDevelopment

david.deegan@mercer.com+44 (0)791 777 8106

MERCER WEBCAST 37

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