PRESENTED BY: RICH WELLINS, Ph.D, SVP, DDI © Development Dimensions Int’l, Inc., 2015. All rights reserved. Means for 2014 Participant Average Ratings for 2014 6 5.0 5 4 5.0 5.0 5.0 5.0 3.93 3.87 3.74 3.42 3 3.76 2 1 0 Strategy Innovation Talent CSR Global= © Development Dimensions Int’l, Inc., 2015. All rights reserved. Average Means for 2014 Participant Average Ratings for 2014 6 5.0 5 4 5.0 5.0 5.0 5.0 3.93 3.87 3.74 3.42 3 3.76 2 1 0 Strategy Innovation Talent CSR Global= Astra= © Development Dimensions Int’l, Inc., 2015. All rights reserved. Average Asian Leading Company © Development Dimensions Int’l, Inc., 2015. All rights reserved. $5,000 7 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Outcomes That Count Leader engagement and retention Effectiveness of leadership development programs Current quality, future bench strength Composite financials: profitability, earnings per share, 5-year rate of return to investors, and stockholder equity ? SO WHAT 8 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 5 Key Insights 1 2 THE {new} ROLE OF HR 9 3 ENGENDERING DIVERSITY LEADERSHIP PIPELINE 4 5 THE HI-PO TALENT POOL ANALYTICS: FROM SIGHT TO FORESIGHT © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. THE {new} ROLE OF HR 10 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. What Role Does HR Play? Reactor • Develops and administrates policy • Ensures compliance • Source of HR expertise when asked 11 Partner Anticipator • Embedded in business • Resolves talent issues • Supports rollout of talent management initiatives • Align talent capabilities with business strategy • End-to-end talent management architecture • Interpret talent trends and translate into opportunities © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. HR What Role Does HR Play? Reactor 22% • Develops and administrates policy • Ensures compliance • Source of HR expertise when asked 12 Partner 60% • Embedded in business • Resolves talent issues • Supports rollout of talent management initiatives © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. HR Anticipator 18% • Align talent capabilities with business strategy • End-to-end talent management architecture • Interpret talent trends and translate into opportunities What Role Does HR Play? LEADER HR 20% Reactor 22% Partner 60% Anticipator 18% • Develops and administrates policy • Embedded in business • Resolves talent issues • Align talent capabilities with business strategy • Ensures compliance • Supports rollout of talent management initiatives • End-to-end talent management architecture • Source of HR expertise when asked 13 37% 43% © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. • Interpret talent trends and translate into opportunities HR Talent Planning Intersection with Strategic Planning STRATEGIC PLANNING PROCESS Early/Strong Connection 5% Reactor 26% Partner 43% Anticipator Moderate/Late Connection Weak/No Connection Talent + Strategy Boosts Financial Performance Top 20% Bottom 20% 6.2x 15 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. ENGENDERING DIVERSITY 16 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. • Women in senior management: 24% in 2007, 24% in 2013 • Women in Fortune 500 CEO positions: 14.4 percent in 2010, 14.6 percent in 2013 • Wage gap has not closed in 15 years; Women expect to make less 17 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Skill Gap Fallacy 18 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Skill Gap Fallacy # WHAT NOW 19 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Where Are the Gaps? Focusing on Development • More International Assignments • More Confident # WHAT NOW 20 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 21 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Source: Global Leadership Forecast 2014 19% of All Leaders Are Women 22 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 37% of All Leaders Are Women Source: Global Leadership Forecast 2014 16% of Hi-Po Leaders Are Women 28% of Hi-Po Leaders Are Women All High-Potential Leaders 23 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Percent High-Potential Women LEADERSHIP PIPELINE 24 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Leadership Pipeline 25 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Leadership Pipeline • Purposeful transitions • Multi-level role mastery • Common language • Consistent approach to driving business goals 26 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Pipeline Impact 1 Level Quality of Leadership Future Bench Strength Financial Performance 39% 40% 40% 74% 89% 63% All Levels 27 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. THE HI-PO TALENT POOL 28 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 66% HAVE HI-PO PROGRAMS 74% NOT VERY EFFECTIVE # WHAT NOW 29 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Drivers of high potential program quality 30 1. Objective assessment data on hi-po’s capability/potential 2. Mentoring/coaching programs for hi-pos 3. Hi-po leaders performance in developmental assignments is evaluated 4. Measure the effectiveness of programs for developing hi-pos 5. Identities of leaders identified as hi-pos are well-known in the organization 6. Includes all levels of leadership for hi-po programs not just senior managers © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Organizations With Hi-Po Programs Are: Top 20% Bottom 20% 3.6x 4.4X 4.9X ? SO WHAT 31 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. ANALYTICS: FROM SIGHT TO FORESIGHT 32 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. #1 CEO HOT Button BIG DATA CEO Challenge Conference Board 2014 Human Capital Analytics 19 out of 22 CEO Challenge Human Capital Strategies Conference Board 2014 33 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Analytics Use and Effectiveness Not done at all Done effectively Benchmarking externally 66% 13% Gathering business impact metrics 49% 21% Data to design/optimize TM programs 46% 22% Using data to forecast future talent needs 45% 23% Gathering results metrics 44% 24% Benchmarking internally 43% 27% Gathering efficiency/reactions metrics 38% 30% # WHAT NOW 34 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. HR Impact of Leadership Analytics 30% 27% ! NOW WHAT 35 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. HR Impact of Leadership Analytics 24% 30% 23% 27% 21% ! NOW WHAT 36 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. HR What Happens When You Get It Right? 37 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Financial Impact + 4x 11x 4.4x 2014 38 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 2014 ? SO WHAT Financial Impact + 4x 11x 5x 4.4x 2014 39 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 2014 Financial Impact + 6x 8.8x 7.4x 2011 40 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 2014 ? SO WHAT Financial Impact + 6x 8.8x 9x 7.4x 2011 41 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 2014 PRESENTED BY: RAINIER TURANGAN © Development Dimensions Int’l, Inc., 2015. All rights reserved. Critical Leadership Skills Integrate oneself into intercultural or foreign environment Leading across countries and culture Critical Leadership Skills Intercultural communication within international business environments Leading across countries and culture ASIA 7238 Leaders 867 HR 47 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. CEOs Rank Top Four Challenges* Human Capital 27% 22% Innovation 26% 23% Customer Relationships 45% 40% Operational Excellence 33% 41% Leaders who are very prepared to meet these challenges. 2 Self-reported 48 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. *Sources: 1The Conference Board, 2014; leader readiness to address these challenges; Global Leadership Forecast 2014 | 2015 35% Quality of Leadership 35% 38% 2011 Leader Rating 22% 19% HR Rating 49 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 40% 2014 25% 2011 25% 2014 Critical Positions That Can Be Immediately Filled 46% 47% 50 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Ready-Now Leaders for the Future 20% 18% 2011 51 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. 15% 15% 2014 Countries Included in our Numbers… PRESENTED BY: HATTA TRIANGGA 52 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. INTRAPERSONAL SKILLS: • Driving for Result STRATEGIC LEADER COMPETENCY PROFILE INTERPERSONAL SKILLS: • Building Trust • Developing Strategic Relationships LEADERSHIP SKILLS: • Change Leadership • Coaching and Developing Others • Selling the Vision BUSINESS SKILLS: • Customer Orientation • Entrepreneurship • Commercial Acumen • Establishing Strategic Direction Effective C-Level Group Result Cluster / Domain Analysis Intrapersonal Skills • Driving for Result Interpersonal Skills • Building Trust • Developing Strategic Relationships 2.81 2.81 Leadership Skills 2.15 • Change Leadership 2.20 • Coaching & Developing Others 2.30 • Selling the Vision 1.97 2.81 Business Skills 2.38 2.99 • Customer Orientation 2.58 2.62 • Entrepreneurship 1.84 • Commercial Acumen 2.73 • Establishing Strategic Direction 2.36 Comparison between SOE vs POE C-Level Executives 2.82 2.79 n 2.98 2.99 2.22 2.12 2.31 2.26 2.76 2.62 2.61 2.73 2.60 2.60 2.37 2.37 2.03 1.96 1.94 1.76 Avg Profile of Indonesian Strategic Leaders (C-Level Executive) assessed against Global Executive competencies – Comparison between Industries (Average Rating) Avg 1. Talent management is not a democracy 2. Start with the end in mind – talent strategy must be tightly aligned with business strategy 3. You must know what you’re looking for – comprehensive success profile 4. Potential, Performance and Readiness are NOT the same thing 5. The talent pipeline is only as strong as its weakest link Drivers of high potential program quality 64 1. Objective assessment data on hi-po’s capability/potential 2. Mentoring/coaching programs for hi-pos 3. Hi-po leaders performance in developmental assignments is evaluated 4. Measure the effectiveness of programs for developing hi-pos 5. Identities of leaders identified as hi-pos are well-known in the organization 6. Includes all levels of leadership for hi-po programs not just senior managers © Development Dimensions Int’l, Inc., MMXIV. All rights reserved. Countries Included in our Numbers… 65 © Development Dimensions Int’l, Inc., MMXIV. All rights reserved.