Creating a Strong Talent Pipeline: how ready are you

74th NHRDN Webinar: 23.07.2014

Creating a strong talent pipeline How ready are you?Creating a strong talent pipeline How ready are you?Creating a strong talent pipeline: How ready are you?Creating a strong talent pipeline: How ready are you?

A KrishnaA KrishnaSr. Vice President - HR

Bosch LimitedBosch Limited

A Krishna | Sr. Vice President - HR | 23.07.2014 | © Bosch Limited 2014. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.1

Creating a strong talent pipeline

Presentation overview

Introduction


Four dimensions of talent management

How ready are you?




Introduction



How ready are you?



Talent Management – most critical HR topic!Talent Management most critical HR topic!

As per BCG’s preport ‘Creating People Advantage 2013’,Advantage 2013 ,talent management and leadership are the most criticalthe most critical topics for HR



Talent Management has a low ROE!!??Talent Management has a low ROE!!??


From BCG’s report ‘Creating People Advantage 2013’


Other Global TrendsOther Global Trends


From Deloitte’s Report: “Global Human Capital Trends 2014 – Engaging the 21st Century workforce”

Creating a strong Talent Pipeline

Other Global Trends: Key Focus areas for HROther Global Trends: Key Focus areas for HR


From Deloitte’s Report: “Global Human Capital Trends 2014 – Engaging the 21st Century workforce”


HR at “Crossroads”HR at Crossroads

Securing the Leadership

pipeline


From PWC’s report: “ Managing in uncertain times: HR at crossroads”


SummarySummary

Several international and national studiesSeveral international and national studies emphasise talent building as the most crucial

task for organisationsg




Introduction



How ready are you?



Why? • Quantity comes before quality!Quantity comes before quality!

• Talent is needed in leadership, functional and expert roles!



The Four dimensions of Talent ManagementThe Four dimensions of Talent Management

Performance

Creation of talent

pipelineCompetencyOrganisational

frameworkpipeline

Potential




Performance

Creation of talent


frameworkpipeline

Potential



The First Dimension: PerformanceThe First Dimension: Performance

H,H • Rewards focus primarily on ‘Stars’• High differentiation could lead to widespread de-motivation

Q1

H,L H,H

ewar

ds

Q1Q2

HIG

H

widespread de motivation• Can erode talent pipeline build-up in the long run, unless engagement measures are strong

H L Att ti b k t f N tQ2

L L L Honet

ary

Re Q1Q2 H,L • Attractive basket of Non-monetary

rewards necessary• Median compensation levels would have to be kept above market levels, to avoid attrition; can make business

Q2

L,L L,H

Non

Mo

Q3Q4

LOW HIGH

LOW

attrition; can make business uncompetitive• Non-monetary rewards to focus on development of individuals, to be effective

fQ3Monetary Rewards

LOW HIGHL,H • Focus on monetary rewards is self-

limiting in the long run – promotes mercenary culture?

L L • Recipe for talent exodus!

Q3

Q4

Organisations have to make conscious, well thought out choices regarding performance management and stick to them; not be swayed b i t d


L,L pQ4by passing trends



Performance

Creation of talent


frameworkpipeline

Potential



The Second Dimension: CompetencyThe Second Dimension: Competency

Two aspects of competency frameworkframework

lFunctional Organisational-role / level

Clarity needed on both aspects!

A Krishna | Sr. Vice President - HR | 23.07.2014 | © Bosch Limited 2014. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Clarity needed on both aspects!

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Competence framework: example from BoschCompetence framework: example from Bosch

Hard skills

ConfidentialConfidential

Soft skills



Bosch Leadership Competence frameworkBosch Leadership Competence framework

Confidential



Bosch rating scale for competencies

DegreeCompetence Field Technology

Competence Field Business Administration

EntrepreneurialMindset, Leadership, Social Competence

Bosch rating scale for competencies

Competence Field Business Administration Social Competence

1 No knowledge, skills, and abilities / Not requested No Degree/Not Requested

2Basic:

A person with a low level of a competence has theoretical knowledge ith littl ti l i i l i it H h d t t

Less Developedwith little practical experience in applying it. He or she needs support to solve problems and reach goals.

3Advanced:

A person with an advanced level of a competence has a lot of experience in applying his/her knowledge. She/he is able to apply the

biliti i d h i t t

Well DevelopedConfidential

abilities in new and changing contexts.

4

Specialist:A person with a high level of a competence is able to work independently, solve problems intuitively and find new solutions. She/he can coach and instruct others to come to a specific solution. The depth

f h /hi k l d ll h /hi l l d k

Very Well Developed

of her/his knowledge allows her/him to solve complex and new tasks.

5Champion:

The depth and breadth of his competence is outstanding. He/she has a technical and methodological overview and sets technical/methodological standards for companies and industry.

Excellently Developed

19 A Krishna | Sr. Vice President - HR | 23.07.2014 | © Bosch Limited 2014. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.



Performance

Creation of talent


frameworkpipeline

Potential



The Third Dimension: PotentialThe Third Dimension: Potential

Does the organisation have a clear written definition of potential?

Is this definition of potential only “vertical” oriented or is it broad based ?

A clear definition of ‘Potential’ is essential to get the right results!


A clear definition of Potential is essential to get the right results!

Definition of “Potential” in Bosch


Definition of Potential in Bosch

Therefore, potential is: a forecast on the strength of previous job performance (“projected reserves”)Confidentiala o ecast o t e st e gt o p e ous job pe o a ce ( p ojected ese es ) an anticipated predisposition (manifestation of “key and meta-competencies”) always an aptitude relating to a particular set of demands, not a value in itself (e.g. potential

for leadership of a particular group or for management of a particular project) subject to change, just as demands are subject to change:

potential e.g. through learning, experience, motivation


demands e.g. through new tasks, organization, environment

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Performance

Creation of talent


frameworkpipeline

Potential



Organisational frameworkOrganisational framework

Clearly articulated overall framework for HR policies is essential

Talent pipeline creation is a sub-set of such framework

Key elements of talent development to be clearly spelt out

Talent pipeline to be matched to needs arising from current and f t i ti t tfuture organisation structures



HRM Guidelines at BoschHRM Guidelines at Bosch

Promotion of managers from within Deployment of associates according

to their abilities Job-related training opportunities

Promotion of managers from within our own ranks

Continuity of employment (not necessarily in same position)g pp

Advancement of associates willing to take on greater responsibilities

Job opportunities worldwide

in same position) Pay for position and performance

Fair treatment of associates by Confidential

Job opportunities worldwide

Priority of corporate interests over divisional and local

supervisors

Good working conditions

Good working relations to Works Councils


gand unions

25


Influence of salary levels on performance standardsInfluence of salary levels on performance standards

Confidential

Assessment standards depend on salary level!


Assessment standards depend on salary level!

26


Career paths in Bosch: 3 routes are available…

LeadershipHead of Department

Executive Management

p

Manager, Group Leader… in line mgt.

Project Leader (A projects)

Projekt-leiter

Project Leader (C projects)

… in projects Project Leader (B projects)

Confidentialleiter

Expert, Specialist with GB-wide impact

with RB-wide impact

within division

Top mgtSenior mgtMiddle MgtJunior Mgt.


It is possible to switch between career paths


Bosch Career elements for line and project management

Required Experience GM/SGM VP

Cross Divisional move

Sr. VP

Bosch Career elements for line and project management

Cross Divisional move(GB-GB, GB-C) Cross Function Move I t ti l E i

thereof

1thereof

2

International Experience (> 2 years)

Employee Leadership Experience

thereof thereof thereof

Confidential

Project Leadership Experience*

Minimum Criteria met 2 3 4

thereof

1

thereof

1

thereof

1

Minimum Criteria met 2 3 4

Criterion must be met to reach respective Salary level (with promotion at the latest); experiences made in other companies will be considered. Cross Divisional Move, Cross Function Move and International Experience may be acquired before taking on a leadership position


position.



Introduction



How ready are you?



How ready are you?How ready are you?

Clear metrics necessary to keep organisation on track!

Examples of metrics: N b f f h iti Number of successors for each position Readiness of talent pipeline Attrition among high performers Versatility of talent pipe-line Versatility of talent pipe line

Periodical measurement and review



Building leaders for future: KPIs@ BoschDefine Number :

Talent pipeline = % gap of > Middle management positions v/s potential

Building leaders for future: KPIs@ Bosch

successors identified (horizon : 24 months for Middle Mgt, 36 months for Senior Mgt)

KPI _1a : % gap 2014 2015 2016YearPosition_ g p

Mid.Mgt.

SeniorMgt.

SL2 Xx %

SL3 Yy %

KPI_1b : Just identified / Development started(Readiness beyond 12 months)

Development in progress

g g

a% b%

Development in progress(Readiness < 12months)

Development completed

c% d%

e% f%

DS/NE-IN | 23.07.2014 | © Bosch Limited 2014. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

(Ready to take up immediately)

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Th k f tt ti !Thank you for your attention!


Leadership & Management

Creating a Strong Talent Pipeline: how ready are you