Strategic Talent Plan in
Michelin China
Julie Chu Nov. 2009
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CHINA SPBY CHINA SP METHOD TEAM
Agenda
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World tire market
Michelin introduction
Michelin in China
Talent Market in China (Past & Present)
Strategic talent plan in Michelin China
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The world tire market in 2005
Others
Toyo 1.8%
Kumho 1.9%
Cooper
Bridgestone
21.3%
18.2%
2.1%
17.7%
Michelin
Hankook 2.5%
Yokohama 2.9%
Sumitomo 3.6%
4.5%
Pirelli
6.3%
Continental
Source : Global Tire Report 2006
(Tire Business daté du 28/08/2006)
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17.3%
Goodyear
Tire Market in China
• Main competitors
– Bridgestone
– Good Year
– Hankook
– Local manufacturers
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Products and Services
Passenger Car And Light Truck Tire
Truck And Bus Tire
 Earthmover Tire
 Aviation Tire
 Maps & Guides
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Multi-Brand Strategy
Michelin: The Most Famous Tire Brand in the World,
Warrior: The Best Known and Longest Established
Local Brand in China, Targeting at Mass Market.
BFGoodrich: Originally from the US, Targeting at
New-Generation Drivers, Who See Motoring as a Form
of Excitement and Expression.
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Customers
• Original equipment
• Vehicle manufacturers
– for all categories
– and all vehicles,
– from bicycles to huge earthmovers
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Customers
• Replacement
• Distributors
– Specialist traders
– Dealers
– Auto centers
– Garages, service stations
– Supermarkets
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Michelin History in China
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Michelin History in China
 1988: Sales Office Hong Kong
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Michelin History in China
 1989: Representative Office Beijing
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Michelin History in China
 12/1995: Joint Venture 1 (MSTC) With STGF Shenyang;
 1996: Production of the First Passenger Car Tire;
 04/1997: 3 More JVs With STGF Shenyang.
 1/1999: Start Truck Tire Production in Shenyang
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Michelin History in China
 1998: Training Centre in Beijing
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Michelin History in China
 4/2001: Set Up a Joint Stock Company With STRC
Shanghai Michelin Warrior Tire Co., Ltd.
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Michelin History in China
 12/2002: Set Up Michelin( China) Investment Co.,Ltd.
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Locations in China
Heilongjiang
Jilin
Liaoning
Xinjiang
Gansu
Bejing北京
Inner Mongolia
Hebei
Quinghai
Ningxia
Shanxi
Shenyang
沈阳
Tianjin
Shandong
Xi’an西安
Shaanxi
Tibet
Henan
Jiangsu
Shanghai
Sichuan
Hubei
Anhui
Shanghai上海
Zhejiang
Hunan
Chengdu成都
Guizhou
Jiangxi
Wuhan武汉
Fujian
Yunnan
Guangxi
Guangdong
Guangzhou广州
Hainan
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Hong Kong香港
China Talent Market
Past & Present
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China’s Talent Market
Past
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China’s Talent Market
Past
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China’s Talent Market
The Present
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China’s Talent Market
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Top Priorities for a CEO i
One of the
Attracting and Retaining top talents
• 70% of Top 500 Fortune companies is experiencing Talents
shortage
• 92% of companies present in the market is also experiencing a
Talents shortage
15
2002
2003
2004
2005
10
5
0
2002 2003 2004 2005
HRM Challenges in China, by Prof. Serena ROVAI Uni-Italia Intergovernament Centre Anantara LtD
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Talents’ Turnover in
percentage
Facts sheet of Michelin China SP
• More than 5500 employees
• Double digital growth of headcount in some activities
• Average Volume: a few hundred hires by year
• 5% senior management ,5% technical workers and 90%
white collars
• Nearly 50% commercial staff
• Less than 8% turnover rate among white collar employees
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Mission Of Service Personnel
People is not a resource, but an asset.
Ensure that motivated, responsible and competent
people are available where and when they are needed
at all times and in all areas of activity.
This mission must be fulfilled at the highest level of
performance in terms of quality, cost and timeliness.
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5 Principles of SP
• Seek to establish and manage the best match between the
person and the company
• Develop the international outlook of the individuals and
teams
• The management and development of personnel is a
responsibility shared by the person, the manager and the
Personnel Service
• Guarantee and facilitate a means of recourse for everyone
• Preserve the cohesion of Group Michelin
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How SP to cope with business
growth?
• SP = Service Personnel
– Recruitment
– Integration
– Training
• SP = Strategic Personnel
– Career development
– GPC
– Rewards
– Engagement & retention
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Recruitment
• We don’t only hire for a specific position, we hire people to
meet the company’s current and future needs
• Position fit
• Cultural fit
• Development fit
• Career managers’ involvement in the recruiting process
• SP reserves a special budget to hire people who may not
necessarily be needed at the current stage
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Integration Process
• Started since the recruitment stage
• Co-managed by the business manager and the career
manager
• Monitoring the key factors to the successful integration
– Relationship and networking
– Role clarity
– Culture
– Early wins
– Accelerate learning
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Career management process
Who is involved?
Individual
Manager
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Career
Manager
Career
Manager
What is career management?
• We manage our people’s potential development
• Employee’s potential can be assessed
• Through their performance
• Through their behaviors and the way to reach the targets
• Potential characteristics are grouped under 3 headings
• Driving energy(leg)
• Thought (head)
• Leadership(heart)
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Potential Matrix
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Driving energy(leg)
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Ambition
Energy
Dynamism
Adapbility
Thought (head)
• Make sound decision
• Act strategically
• Think creatively
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Leadership(heart)
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Communication
Motivate others
Develop others
Establish relationship & trust
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Gestion Previsionnel des
Competences
• GPC is a continuous and long term focused system to
anticipate manpower needs in the coming 5 years
• It’s integrated into the annual budget process and
implemented at country level
• To make sure critical competence localized and to meet
current and future needs on critical competence.
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How to implement GPC?
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Population assessment/Metier diagnosis
Succession plan & localization plan
Vivier / pepiniere recruitment
Overseas training
Expatriation
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Remuneration Philosophy
Market
We pay our
employees according
to market factors.
We pay according to
job responsibility.
Position
Performance
We pay according to
performance results.
We pay according to
personal
competency.
Person
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By doing all the previous
mentioned correctly, we can
achieve a high level of employee
engagement and employee
retention
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Thanks for your attention
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