Knowledge Transfer and the
Changing Workforce
Simon Herriott, Managing Director, DuPont Sustainable Solutions
November 2, 2011
The Issue
“Population aging is unprecedented, a process without
parallel in the history of humanity…”
•
United Nations, World Population Ageing Report, 2007
By 2020:
•
Most developed countries will have more than 35% population over 50
• In Asia Pacific alone, 50+ population will grow almost 5 times faster than
the total population growth and will represent almost 1 billion people
across the region
•
Retirement ages are rising (~ 65) meaning more older workers
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Several studies on the Effects of Aging in relation to
safety of the older worker…..
Sources: Liberty Mutual Research Institute Quarterly Review 2007
Dr Monika von Bonsdorff, et al, Finland, Journal of Occupational and Environmental Medicine, Volume 52, Issue 12, December 2010.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
3
Workforce is not just aging, but changing……
Born
Boomers
194664
Gen X
196579
Gen Y
198089
Age
47-65
32-46
22-31
% of
global
workforce
Typical
Level
Stereotypes
27
Loyal
Tech-challenged
Wealthy
40
Attached to Family
Cynical
Individualistic
33
Entitlement
Irrational/Obsessive
Tech-savvy
Source: Managing Generation Y in the Workforce: Corporate Executive Board: Asia HR Executive Board 2011
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4
Age 60+ Population in 2000
Under 5%
5% to 12.4%
12.5% to 20%
Above 20%
Source: U.S. Census Bureau 2000
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5
Age 60+ Population in 2025
Under 5%
5% to 12.4%
12.5% to 20%
Above 20%
Source: U.S. Census Bureau 2000
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6
Growth in the Working-Age Population
- or should we say Decline?
200%
1970-2010
2010-2050
150%
100%
62%
50%
18%
0%
-50%
Mexico
Brazil
India
South
Africa
China
South Australia Canada
Korea
US Netherlands Spain
France
Russia
UK
Japan Germany
Italy
Source: Deloitte Research, It’s 2008: Do You Know Where Your Talent Is? Why Acquisition and Retention Strategies Don’t Work
7
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Growth of US Workforce - 2000 to 2020
80%
70%
73%
60%
50%
54%
40%
30%
20%
10%
7%
0%
8%
7%
3%
-10%
-10%
-20%
under 14
15-24
1
Fewer younger
workers entering
25-34
2
35-44
45-54
55-64
65+
3
Declining number of
mid-career workers
Rapid growth in the
over 55 workforce
Source: US Census Bureau
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8
US Fatal Occupational Injuries: Age
Fatalities Per 100,000 Workers
14
12
11.5
10
8
6
4
2
4.1
2.4
2.3
2.3
18-19
20-24
25-34
2.8
3.4
0
35-44
Age of Worker
45-54
55-64
65+
Source: NSC, Injury Facts
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9
Challenges to U.S. Workforce

Aging workforce,

Changing attitudes/motivations

Knowledge Transfer

Limited availability of key skills
•
Shrinking skilled worker pool
•
Cannot count on sending countries for skilled workers
•
International competition for talent

Changing face of work – global, virtual, independent

Retaining and growing intellectual and experience assets

Continuing to develop diversity
•
Race
•
Gender
•
Generations
•
Culture
10
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So what?
11
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Work processes/
Technologies
System
Support
Resources
People
Reward/
Motivation
Tasks/Functions
Understanding and managing the people element is critical for sustainable performance excellence .
While technologies and systems become more complex, people, as the ultimate decision makers,
play an even more significant role.
12
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…it needs an approach that puts people at the center
Growth/
Learning
Work/Life
balance
Productivity
People
Physical/
Functional
Capability
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Motivation
Attitude
Engagement/
Social
Support
Competency
Capability
Source: DuPont Sustainable Solutions
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13
Changing Workforce: Challenges and Opportunities
•
Adds complexity to people issues e.g., training, engagement, reward,
communication.
•
It is a systemic change.
•
Business risks? Performance risks? Operational risks? Are those
tasks/processes designed 20 years ago feasible for today’s workforce?
•
Increased operating complexity demands seamless teamwork and collaboration
•
Managing it well leads to strategic advantage (beyond managing the
demographic issue)
14
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An Integrated Approach
•
•
•
•
•
•
•
•
Knowledge Transfer
Individual development plans
Offer blended feedback mechanisms
Use blended learning approaches – for all
ages
Growth/
Learning
•
•
•
•
•
•
Integrate S&H
promotion/screening
Offer incentives for
wellbeing programs
Provide healthy work
setting/schedule
Match functions and
capabilities
Target risks
Work re-design
•
Work/Life
balance
Productivity
People
Physical/
Functional
Capability
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Motivation
Attitude
•
•
Offer work extension
Re-careering options
Re-training
Flexible work organizations
Re-careering incentives
Offer blended performance incentive
options
Track performance
Engagement/
Social
Support
•
•
•
•
Cultivate communities
Use team approach
Understand
generational attributes
Embrace differences no right or wrong
Competency
Capability
•
•
•
•
Identify critical functions/Skills
Recruit and manage talents
Target competency
Leverage contingency planning
and succession planning
Source: DuPont Sustainable Solutions
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15
An Integrated Approach
Growth/
Learning
Work/Life
balance
Productivity
People
Physical/
Functional
Capability
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Motivation
Attitude
Engagement/
Social
Support
Competency
Capability
•
•
•
•
Identify critical functions/Skills
Recruit and manage talents
Target competency
Leverage contingency planning
and succession planning
Source: DuPont Sustainable Solutions
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16
Competencies and Capabilities become the foundation of
people development
Complete organizational
“strengths” and “needs”
analyses.
Assess organizational
capabilities and
develop workforce
planning strategies.
Organizational
Assessment
Recruitment
Establish criteria for
candidate selection.
Provide the skills
necessary for success in
the position.
Integrate Job/Position
requirements into testing
and assessment tools.
Jobs &
Positions
Identify appropriate
learning opportunities
and strategies to
support employee
development.
Learning
and
Development
Talent
Establish criteria for
Management promotion and
personnel movement.
Manage projects and
global assignments
Performance Partnership
based on required skill
sets.
Measure performance criteria and skills by
employee and across employees.
Assess performance results consistently.
Identify Critical Skills
Difficult
Critical Skills
Skill
Replacement
Easy
Low
1
Critical Functions
Skill Replacement Factors
•
•
•
•
•
Supply
Training requirements
Complex/experience-intense
Skill maturity period
Multiple interfaces
2
High
Attrition Concern
High/Immediate
Low/not immediately foreseeable
Source: DuPont Sustainable Solutions
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18
Organizational Competency Building and Retention
Identify
Critical
Skills
Retention
Work-extension
Re-careering
Work re-organization
Performance support system
Talent
Recruiting
Target Talent
Internal Talent
External Talent
Outsourcing potential
Knowledge
Transfer
Mentoring/coaching
Critical event interview/review
Job shadowing
Storytelling
19
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Center of Competency for SHE
Global CoC – others include Engineering, Capital, Operations
Central custody of Standards
Development center for regional/local SHE resources
Support SHE Governance and Assurance for Board
Strategic Direction for SHE
Subject Matter Expertise
Updating and keeping the standards current
Influencing from centre
Assess and fill SHE Resource needs of the sites and center
Development of SHE competencies in sites and center
Tracking metrics and 2nd & 3rd party audits
External face for SHE related matters
Critical Resource as
workforce changes
Deep specialist subject matter expertise
An Integrated Approach
•
•
•
•
Knowledge Transfer
Individual development plans
Offer blended feedback mechanisms
Use blended learning approaches – for all
ages
Growth/
Learning
People
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Source: DuPont Sustainable Solutions
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21
What is Knowledge Management?
• KM = leveraging of collective wisdom to increase responsiveness and innovation
• A dynamic knowledge management system for a viable strategy for the changing workforce
Primary repository for knowledge is in peoples’ heads
Here it coexists with intelligence and experience – comes “out” as knowledge when decisions need to
be made
Is contextual – ie. Determined by the circumstances under which the individual learned the
knowledge
Is dynamic – ie changes with new experiences and stimuli
• Pivotal issue is the creation of a culture to support trust and collaboration
Bulletpoint article (May 1998) – biggest source of disappointment with KM practices is cultural change
• “the greatest difficulty lies not in persuading people to accept new ideas, but in
persuading them to abandon old ones” (JM Keynes)
• It is NOT a storage capacity for accumulated information
Need to treat electronic & paper repositories as intermediate storage for info in transit “between”
peoples’ heads
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Knowledge Management – understanding the nature of
knowledge
Explicit = articulated in formal language
Tacit = personal knowledge embedded in individual experience (includes beliefs, perspectives,
instinct, values) Most organizational knowledge is tacit and destined to remain so
Conveying knowledge is about building a bridge between a knowledge seeker and provider
Knowledge
Type
Management Challenge
Best Transfer Mode
Timing of Transfer
Explicit
Quantity & Accessibility
Electronic (efficiency)
Synchronous or
Asynchronous
Tacit
Interpretation &
Articulation
Face to Face (depth,
context)
Synchronous
Knowledge Management Applications
• A model to demonstrate how knowledge is shared across the organization
(Nonaka):
• 4 applications of knowledge management:
Intermediation – the brokerage of bringing those who seek knowledge to
those that provide (may be real-time or transferred thru storage)
Externalization – the classification of knowledge in its external repository.
The establishment of rules, methods for capture, storage and retrieval:
Internalization – the connection of knowledge to inquiry and the personal
internalization of the knowledge through lens of personal experience
Cognition – process of making decisions based on individual’s knowledge ie.
Its application.
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DUPONT CONFIDENTIAL
Technology & Knowledge Management
Explicit Knowledge
Tacit Knowledge
Intermediation
Personal Profiling Systems,
Groupware applications (on-line
meeting places),
Communities of Practice
Externalization
Document Management, taxonomies,
visualization
Mentoring
Internalization
Search and Retrieval Agents, Portals
Apprenticeship
Cognition
Workflow, decision-support, decision
trees, case mgt portals
Intuition
Knowledge Management
Knowledge Transfer Strategy
Types of Knowledge/Skills
Mentoring/Coaching
Complex and sophisticated content. Interactive progressive learning. Critical skills
Critical Incident Review
Specific and situational knowledge and experiences. Contextual complex
knowledge. Critical skills.
Job Shadowing
Hands-on practices. Complex content. Critical skills.
Storytelling
Less structured. Effective for transmitting wisdom, emotional and relational
knowledge and asset.
Communities of Practices
Common problems, topics and issues.
Process Documentation
Standardized repeatable process. Limited and special variations.
Job Rotation
Skill broadening and enrichment. Complementary skill-set.
Expert System
Problem specific. Trouble shooting, e.g. help desk.
Electronic Knowledge
Management Systems
Knowledge that can be captured by texts or images.
Job Aids
Standardized, simple, and limited variation content, e.g., checklist.
Tapping Retiree Base
Experience-based. Client –relation. Best practices, e.g., online or video-conference
Reference: William Rothwell, IPMA-HR News, Feb., 2004
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26
Organizations typically go about Learning & Development in
one of two ways
Learning and Development Process
Align learning needs with
business objectives.
Build curriculum
Enabling learning
management incl.
tracking and
measurement
PLANNING
Building, buying and
reusing learning content
ADMINISTRATION
Developing culture of
learning incl competency
metrics and linkage to
KPIs
CONDUCIVE
ENVIRONMENT –
M’MENT SYSTEMS
DESIGN &
DEVELOPMENT
DELIVERY
Planning and delivering
learning thro’ appropriate
delivery mechanism
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Levels of Learning
Champion/
Specialist
Skills
Knowledge
Proficiency
Delivery Methodology
Make decisions,
Use judgment,
Apply Experience,
Simulation,
On-the-job Application,
Rich content
Coaching / quality critique
Applies the knowledge
in day-to-day operations
Engaging involvement
Practice activities
provide feedback
Is aware of the basics
Knows his roles and
Responsibilities
Engaging involvement
Retention /
“refresher” activities
An Integrated Approach
•
•
•
•
Growth/
Learning
Offer work extension
Re-careering options
Re-training
Flexible work organizations
Work/Life
balance
Productivity
People
Physical/
Functional
Capability
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Motivation
Attitude
Engagement/
Social
Support
Competency
Capability
Source: DuPont Sustainable Solutions
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30
Variation of Preference for Work-Life Balance by Age
31
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Workplace Health Promotion
Source: Source: Goetzel and Reuters, Value
in Health Care, Institute of Medicine (2010)
1.
2.
3.
4.
5.
Anderson, E. Wellness Councils of America, 2002.
Aldana SG. Financial impact of health promotion programs: a comprehensive review of the literature. Am J Health Promotion, 2001; 15(5):296-320.
Berry, Mirabito & Baun, What’s the Hard Return on Employee Wellness Programs? Harvard Business Review (Dec 2010).
Naydeck, BL, et al. 2008. The impact of the Highmark employee wellness programs on 4-year healthcare costs. JOEM:50:146-156.
Aldana, SG, et al. 2004. Financial impact of a comprehensive multisite workplace health promotion program. Preventive Medicine; 40;131-137
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32
An Integrated Approach
Growth/
Learning
Work/Life
balance
Productivity
People
Physical/
Functional
Capability
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Motivation
Attitude
Engagement/
Social
Support
•
•
•
•
Cultivate communities
Use team approach
Understand
generational attributes
Embrace differences no right or wrong
Competency
Capability
Source: DuPont Sustainable Solutions
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33
The Power of Networks….from Talking Shop to Learning
Shop
•
Generation Y get it
•
They exist anyway – harness them
“Communities” already exist – the “grapevine”, informal networks – built on
trust
Need to recognize, support and administer the connections (managed badly
they undermine formal structures)
•
Clear objectives , less clear outcomes
•
Strict ROI measurement is kryptonite for networks
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Networks: A Case Study – DuPont Corporate Electrical
Safety Team (CEST)
Objectives
Deliverables
Critical to Success Key
Themes/Characteristics
Zero Injuries from
Electrical Hazards
Best Practice
sharing
External
perspectives
Zero Incidents
involving electrical
energy
Analysis of KPIs
Discovery
• Continuous
Improvement &
Change Management
Flexible
• Defined workstreams,
structure/
SMEs as members
Membership
• Knowledge Intensity
Performance
& Institutional
Dashboard – esp.
Memory
leading indicators • Engagement
Institutionalizing
Memory
35
An Integrated Approach
Growth/
Learning
Work/Life
balance
Productivity
People
Physical/
Functional
Capability
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Motivation
Attitude
•
•
•
Engagement/
Social
Support
Competency
Capability
Re-careering incentives
Offer blended performance incentive
options
Track performance
Source: DuPont Sustainable Solutions
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36
Effort is not determined by generation
37
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Source: Managing Generation Y in the Workforce: Corporate Executive Board: Asia HR Executive Board 2011
Highest Rated Job Preferences vary little by generation
Source: Managing Generation Y in the Workforce: Corporate Executive Board: Asia HR Executive Board 2011
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38
Two types of motivation
Intrinsic (Internal)
•
Motivated by personal inner drive: personal growth, personal values, beliefs,
attitudes
•
Attend a course for the commitment to learning (a carrot)
Extrinsic (External)
•
Motivated by external factors: prestige, money, success, promotion
•
Attend a course for the benefit brought about by a qualification or compliance (a
stick)
An Integrated Approach
Growth/
Learning
•
•
•
•
•
•
Integrate S&H
promotion/screening
Offer incentives for
wellbeing programs
Provide healthy work
setting/schedule
Match functions and
capabilities
Target risks
Work re-design
Work/Life
balance
Productivity
People
Physical/
Functional
Capability
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Motivation
Attitude
Engagement/
Social
Support
Competency
Capability
Source: DuPont Sustainable Solutions
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40
What is aging?
Aging is a multidimensional process of physical, mental,
psychological, and social change.
41
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Implications of Aging Workforce
Physical Capacity
Mental Capacity
• Maximum strength peaks at age 20-30
• Reduced flexibility, balance, increased
reaction time
• Older adults work closer to their
maximum capacity
• Slow recovery
• Tests showed that learn and recall
slower
• sensitive to socioeconomics,
• not translating well to work performance
• Other factors that influence performance
of older workers
• work engagement
• working relationship
• Interest in learning new things
But then,
Advantages of Older Worker
• Attitude and Ethic
• Experience and Judgment
• Flexibility
42
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Generational Attributes and Workplace Adaptations
Traditionalists
Boomers
Generation X
Generation Y/Millennial
1928 – 1945
1946 – 1964
1965 -1981
1982-2000
Leadership
Command and
Control
Get out of the way
Coach
Partner
Learning Style
Classroom
Facilitated
Independent
Collaborative/networked
Decision Making
Seeks approval
Team informed
Team included
Team decided
Feedback
No news is good
news
Once a year
Weekly
Immediate/on-demand
Views of
Authority
Automatic
Respect
Love/hate
Not intimidated
Impatient
Technology Use
Uncomfortable
Avoid if I can
Unsure
Unable to work without it
Unfathomable if not provided
Job Change
Unwise
Sets me back
Necessary
Part of my career routine
Particular
trait
Conservative
Loyal
Strong work ethic
Independent
Conscious of globalization
Embrace diversity
Training
Additional
requirement
Not too much
Required to keep me
Continuous and expected
43
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…it needs an approach that puts people at the center
Growth/
Learning
Work/Life
balance
Productivity
People
Physical/
Functional
Capability
• Generational attributes
• Value and expectations
• Ethics, Culture,
Background
• Sub-Cultures
Motivation
Attitude
Engagement/
Social
Support
Competency
Capability
Source: DuPont Sustainable Solutions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
44
45
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