UPES does not own the content in this presentation. These are presentations presented in 2002 during the 2nd HR Round Table.
Text of Driving Results
1. Driving Results with Breakthrough People Strategies June, 2003 Ravi Virmani, Managing Director, South Asia Hewitt Associates Presented at HR Round Table organized by ISPe & UPES, Dehradun 2. The old adage People are your most important asset is wrong. People are not your most important asset, the right people are - Jim Collins in Good to Great 3. What we know of the future Privatization and Deregulation of sector Intensity of Competition Environmental & Social Regulations New frontiers and New technologies Looking beyond borders Structural Changes Natural gas as an alternative The unknown unknowns Transform or Perish... 4. Business Results & Strategies Business Capabilities People Requirements Talent Strategies Employee Needs Staffing Rewarding Performing Organizing Learning Driving business results through people Business Interactions Management Practices Balanced Measurement 5. Bringing talent strategy to life Crude Procurement Refining Logistics Marketing Do I have the right people doing the right things Am I creating the right environment for success How do I know People Capability Performance Drive Structure Reward Customer 6. Strategy framework - an illustration Build emerging businesses Extend & defend core businesses Create viable options Profitable Growth Seed growth options & test business model Manage for profitability Replicate proven business model Key elements required to drive/ achieve growth and profitability for your business model Structure Capability Performance Reward 7. Seed growth Manage Replicate Organization structure Innovators Entrepreneurs Technical specialists Developers of emerging businesses Autonomy to run businesses High level interface with the Strategic Group Strategic core to drive synergies Consolidation & Policy direction across different Oil Industry ventures Highest level for Technical Expertsalso Profitable Growth Skill hierarchies Career tracks Continuous redefining of jobs Provision for high octanespecial projects Key Elements Scalability Agility Focus Innovation & Process Orientation 8. Capability building Seed growth Replicate Profitable Growth Key Elements Effective leadership Knowledge and capability development Continuous skill enhancement Defined leadership culture Behavioral and technical competency framework Linkage to hiring, training, performance management etc. Recruitment based on competencies Performance based differentiators Top-line focus and sharp decision making Ability to strategize & run a business Technical & creative skills Deep functional/ industry expertise Strong skill inventory and assessment/ upgradation mechanisms No excuses management style Manage 9. Leadership - the fulcrum of capability building Organisation Team Individual Self Awareness & Effectiveness Leadership Systems Development Exercises Complacence is a function of past success and lack of future visibility. Indian oil and gas companies will need inspired leadership in the next 3-5 years if they are to escape the complacence trap. Strategic paranoia will be the most critical lever available to the value chain integrator. 10. Leadership - the fulcrum of capability building Multi-Source Feedback Individual development action plans Coaching & Feedback Development Curriculum - Workshops, Simulations, Team Exercises Performance Management High potential Management - Succession Planning Self-Awareness & Effectiveness Leadership competencies Identifying individual Strengths & development needs How one is perceived by others Team Development Exercises Team effectiveness Integrated dynamics Addressing collective development needs Supporting Leadership Systems Integrated approach to manage the Leadership Life Cycle Organisational dynamics Systemic model 11. Build your talent pipeline external sourcing strategies groom from within strategies Get the Right People on the bus Senior Leadership Emerging Leaders - Talent Pool Board and CEO Future Leaders - Young Talent 12. Differentiated performance parameters/ time horizons Feedback and Coaching mechanisms Review completion to have the intensity & focus of a budget process Key Elements Alignment to business strategy Right measurement Process orientation and transparency Culture of discipline Performance management Seed growth Manage Replicate Entrepreneurial drive, top-line focus,sharp decision making & self motivation Strategize, plan & run a business aggressively & profitably Organisation building capability Consolidate/leverage technical & creative skills Strong leadership Recognition of innovation Long term time horizon Top-line and aggressive targets Strong linkages to training and development Medium term time horizon Clear penalties for under-performance KRAs and targets based on bottomline growth Ongoing review and feedback Profitability & Growth 13. Common Purpose focusing everyone on the organizations goals Where are we headed? Clear Expectations for individual and group contribution Whats my role? Commitment based on meaningful work and rewards Whats in it for me? Capability built through feedback and learning What will it take? Performance Planning Performance Reviews Rewards and Career Development Ongoing Feedback Focus on the Key Outcomes more than the Process Steps Develop performance systems 14. Ensure alignment. Performance Scorecard Map objectives to the balanced scorecard framework Establish metrics, baseline, and set targets Value Driver Mapping Identify value levers List metrics in view of short- and long-term business strategy, anchored to value creation requirements Strategy Tree Articulate how the business will create value, from high- level strategies to specific initiatives that will support the business objectives 15. Articulated compensation strategy Pay for person & performance Differentiated pay mix/ranges and career paths Standardized pay delivery Key Elements Rewards for continuous skill upgradation Flexibility and responsiveness Equity, fairness and transparency Rewarding Seed growth Manage Replicate Immediate financial rewards for ideas Open ended and broad pay ranges Cash bonuses and equity participation Skill acquisition adequately rewarded Career paths dependent on growth Special incentives for exceptional performance Sharp incentives for meeting targets Clear penalties for under-performance Clearly defined and closed pay ranges Profitability & Growth 16. Putting the building blocks in place Equity Participation Skill based Pay Rewarding Creativity and Innovation Recognition Incentives/ Benefits Differentiated Career Paths Make work a rewarding experience Define a common language of success Share more to receive more Communicate possible rewards effectively Build flexibility in pay Recognize dedication and drive Package career management effectively 17. In summary Your agenda needs to be Build agility and alignment in your structure Develop leaders and manage a steady pipeline of talent Drive performance down the organization Create a common language of success Create a culture of discipline 18. Begin with . The absence of execution is the biggest obstacle to success Larry Bossidy, Execution Execution Turning Ideas Into Action Focus Target the Vital Few Initiatives Demonstrate Impatient Perseverance Communicate Purpose and Progress Practicality Ensure Lean Design Build Real World Tools Enable With Technology Accountability Monomaniac on a Mission Enlist Active Sponsorship Measure What Matters 19. Hewitt Associates www.hewitt.com