transforming asia hr's enterprise impact

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CEB Asia HR Leadership Council Transforming Asia HR’s Enterprise Impact Marcus Westling Direct: +65 6645 4248 E-mail: [email protected]

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Despite recent softening in Asia's talent markets, 8 in 10 Asia HR executives cite that HR in Asia has become significantly harder across the past three years. As technological innovations accelerate and historic boundaries between markets and industries erode, product and talent markets—and the organizations poised to capitalize on them—are moving faster and becoming more complex than ever. Asia's new work environment requires regional HR to extend its impact through enterprise-centric framing of Asia HR's role.

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Page 1: Transforming Asia HR's Enterprise Impact

CEB Asia HR Leadership Council

Transforming Asia HR’s Enterprise Impact

Marcus WestlingDirect: +65 6645 4248 E-mail: [email protected]

Page 2: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

Human Resources

Corporate Integrity

Finance and Strategy

Information Technology

Sales, Marketing, and Communications

CEB Corporate Leadership Council

CEB Recruiting Leadership Council

CEB Benefits Leadership Council

CEB Learning & Development Leadership Council

■ 30 Years of Experience

■ 110+ Countries

■ 10,000+ Participating

Organizations

■ 300,000 Business

Professionals

■ 87% of the Fortune 500

■ 80% of the FTSE

■ 62% of the Dow Jones

Asian Titans

A DIVISION OF CEBWhat the Best Companies Do®

CEB Asia HR Leadership Council

CEB Compensation Leadership Council

2

Page 3: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

Monthly Webinars

■ Asia Friendly times

■ Unlimited participation

CEB Asia HR

Leadership Council

Executive Roundtables

■ Limited to Regional and Country Heads of HR

■ Small groups for better discussions

Dedicated Account Team

■ Located in Singapore

■ Guide you to relevant resources

Program Website

■ Unlimited users

■ Unlimited downloads

Research Team

■ Research interviews

■ Research walkthroughs

Executive Advisor

■ Thought partner

■ Team presentations

MEMBERSHIP FEATURES

A Variety of Methods to Consume the Research and Insights

3

Page 4: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

NOT GETTING ANY EASIER IN ASIA

Declining Business Sentiment in AsiaCEB Asia Business Sentiment Index

Costs and Competitive Intensity Rising in AsiaAsia Business Executives’ Expectations

Asia 78%

Global 65%

Higher Cost Pressure

Asia 71%

Global 47%

Higher Competition

Source: CEB analysis.

Stable

Q1 2013 Q2 2013

Source: CEB analysis.

n = 358.

n = 358.

4

Page 5: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

More Matrixed Organizations

Change in number of individuals involved in decisions in the past three years

More Dispersed Workforce

Change in amount of work with coworkers in another location in the past three years

More Information

Change in time spent finding and reviewing data and information in the past three years

TODAY’S REQUIREMENT: RAPIDLY CHANGING ORGANIZATIONS

High-Level Objectives Are Changing FrequentlyAmount of Change in Organizational Objectives in the Past Three Years

Types of Changes Defining the New-Work Environment

Few Companies Enjoy StabilityCompanies Experiencing Change in the Past Two Years

63% Increased

34% Stayed the Same

3% Decreased

Source: CEB 2013 High Performance Survey.

Source: CEB 2012 Communications Leadership Council Member Survey.

Source: CEB 2012 High Performance Survey.

n = 23,339.

n = 23,339.

n = 63.

Asia

50%

57%

76%

63%

66%

71%

3

2

1

0% 50% 100%

65% 19% 10%

Multiple Company Wide Changes Single Company-Wide Changes

No or Minor ChangesIsolated Changes in BU

Global

Asia

Global

Asia

Global

5

Page 6: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

0%

50%

100%

(MORE) BREAKTHROUGH GROWTH AND INNOVATION REQUIRED IN ASIA

Asia-Based Organizations Need Greater Performance Breakthrough Mean Performance Increase Needed to Hit Goals in 2013, Business Executives’ Estimate

Source: CEB 2012 Corporate Leadership Council High Performance Survey. Note: Talent Productivity component definitions:

Employee Engagement—The pride, energy, and optimism that employees bring to their work each day. Goal Alignment—The clarity of the link between the actions of individuals/teams/leaders and the goals of the company. Cultural Alignment —The extent to which the environment encourages employees to behave in a manner that supports corporate strategy. Organizational Agility—The ability of teams to quickly sense and respond to changes in their immediate environment.

Companies Need More Innovation

Source: CEB analysis.

Source: CEB analysis.

n = 71.

n = 92.

n = 2,046.

29%

ASIA

18%

EUROPE

19%

NORTH AMERICA

26%

33%

3%

71%54%

13%

2011 2015

Executives Asking Emerging Markets to Innovate Much More Share of R&D Project Types in Emerging Markets

75%The percentage of leaders citing innovation as a top area of concern.

Incremental Projects

Next Generation Projects

Breakthrough Projects

6

Page 7: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

Cost Reduction

“Our functional transformation project, while necessary, really just amounts to cost-efficiencies . We were given a target of 15% cost reduction and basically told to figure out how to make it work.”

Senior Director, China India-Based Technology Company

HR Operational Improvement

“We’ve just audited all of our L&D investment to find improvement areas . We’ve identified some great new training programs we can add to our L&D portfolio this year to improve development effectiveness.”

Vice President HR, SE Asia Energy Company

Structure Optimization

“We are changing our business model to compete with lower-cost competitors. In HR, we are restructuring for the third time in six years to improve alignment with the business .”

HR Director, India FMCG Company

Transformation Consultation

“Our head of HR was fired after engaging [an HR consultant] to help us with our HR transformation. It cost us millions . After three years of focus groups and analysis, they basically told us what we already knew . We had nothing to show for the investment.”

VP of HRInternational Financial Services

Company

HR Leadership Upgrade

“We decided to start over. We had struggled for so long to improve HR’s effectiveness in Asia, business leaders just got fed up. We brought in a whole new HR leadership team to turn things around. But honestly, two years later, not much has changed.”

Global Chief HR Officer Manufacturing Company

Technology Implementation

“We implemented [the latest HRIS] last year. We spent a fortune on it, and it’s

practically worthless. It literally must be the most expensive filing cabinet ever purchased. ”

SVP HR, North Asia Global Pharmaceuticals

Company

What do the best Asia HR functions do to help their firms compete in today’s dynamic product and talent markets?

?

LOOKING TO THE (NOT SO STRATEGIC) USUAL SUSPECTS

Common Attempts to Improve HR’s Impact Are Not Yielding Results Reflections on HR Transformation in Asia

Source: CEB analysis.

7

Page 8: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

Examples of Enterprise Transformation Activities

Creating, influencing, and facilitating:■ Medium and long-

term talent and business strategy

■ Business and HR innovation

■ Market entry and exit strategy

CEB’S ASIA HR ENTERPRISE IMPACT MODEL

Business Performance

■ Revenue

■ Profit Margin

■ Market Share

Future Business Confidence

■ Revenue

■ Profit Margin

■ Market Share

Performance at Talent Management

Asia HR’s effectiveness at performing traditional talent management activities and achieving traditional HR and talent outcomes

Performance at Enterprise Transformation

Asia HR’s effectiveness at shaping and facilitating successful new product, operating, and talent strategies and innovations

Enterprise Impact

Asia HR’s effectiveness at using its resources to influence and enable enterprise capabilities to achieve sustainable growth as markets evolve

+ =

Source: CEB analysis.

Examples of Talent Management Activities

Performing activities such as:

■ Recruiting

■ Engagement and retention

■ Training and development

■ Compensation and benefits

Note: Refer to p. 105 for more examples.

8

Page 9: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

18%

37%

45%

40%

32%

27%

10%

30%

50%

CHALLENGE 1: ASIA HR’S POSITIVE ILLUSIONS (OF IMPAC T)

Misalignment of the Role Asia HR Is PlayingOur Asia HR Function Is Most Accurately Described As...

Source: CEB 2013 Asia HR Impact Survey.

Enterprise EnablersHR Service ProvidersHR Administrators

HR Employees

Non-HR Employees

n = 3,448.

Percentage of

Organizations Achieving

Business Goals When...

36%

HR self-rates itself as enterprise enabler

57%57%

Non-HR employees rate HR as enterprise

enabler

9

Page 10: Transforming Asia HR's Enterprise Impact

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CHALLENGE 2: PUTTING THE (OPERATIONAL) CART BEFORE THE (STRATEGIC) HORSE

Operational Excellence Does Not Earn Asia HR the Right to “Be Strategic” Enterprise Impact and Effectiveness at Enterprise Transformation and Talent Management

Enterprise Impact = 1.29X

Percentage of Organizations: 16%

Enterprise Impact = 1.00X

Percentage of Organizations: 43%

Enterprise Impact = 1.42X

Percentage of Organizations: 7%

Enterprise Impact = 1.18X

Percentage of Organizations: 34%

Best Path to Impact

Typical Path

High

HighLow

LowEffectiveness at Talent Management

Effe

ctiv

enes

s at

Ent

erpr

ise

Tra

nsfo

rmat

ion

Source: CEB 2013 Asia HR Impact Survey.10

Page 11: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

Enterprising and Performing

CHALLENGE 3: SUPPORTING AND REACTING, NOT ENTERPRIS ING

Asia HR Not “Being Strategic”Global and Regional HR Versus Global Non-HR Functions

Source: CEB 2013 SHL Occupational Personality Questionnaire.

Global HR More

Effective

Non-HR More Effective Globally

Regional HR More Effective

Leading and DecidingAdapting and Coping

Interacting and Presenting

Organizing and Executing

Creating and Conceptualizing

Cooperating and Supporting

Analyzing and Interpreting

Global n = 282,652 from 3,288 companies.

Non-HR More Effective Regionally

11

Page 12: Transforming Asia HR's Enterprise Impact

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THREE BARRIERS TO TRANSFORMING ASIA HR’S ENTERPRISE IMPACT

Asia HR struggles to consistently create business v alue.

Asia HR is too focused on HR or financial outcomes.

Asia HR improvement efforts typically target incremental operational improvements or HR activities.

Asia HR staff apply an HR administrator or operators mind-set to their roles.

Root Causes

Key Questions

321How can Asia HR reposition itself to drive enterprise capabilities?

How can Asia HR’s services help accelerate organizational competitiveness and growth across time?

How can Asia HR executives reorient staff to enable their enterprises?

Source: CEB analysis.

12

Page 13: Transforming Asia HR's Enterprise Impact

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TRANSFORMING ASIA HR’S ENTERPRISE IMPACT

Asia Root Cause 1Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities

Asia Root Cause 2Striving to Marginally Improve

Operational Effectiveness or Do More

Asia Root Cause 3Most Asia HR StaffCurrently Play an Operational or Administrative Role

Refocus Asia HR on Enterprise Impact

Redesign HR Services to Drive Enterprise Capabilities

Reposition Asia HR Talent as Enterprise Enablers

Center Asia HR Expectations and Accountability on Enterprise Impact

Reduce User Effort Drive Network Performance Through Individual Transformation

Prioritize Asia HR Investments Based on Enterprise Value

Design Regional HR Initiatives for Strategic Business Objectives

Anticipate and Shapethe Enterprise’s Future

Decorporatize (Select) HR Offerings

Engineer Productive Collaboration Within the HR Function

Repackage Services for Greater Local Uptake

13

Page 14: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

CEB’S HIGH-IMPACT ASIA HR CAPABILITY FRAMEWORK

Differentiating Characteristics of Next Generation Asia HR Functions

Asia HR Solutions Effortless, Enterprise-Focused,

and Embedded

Asia HR’sNetwork Performance

Advisory Capability

Future Focus and Innovation

Talent and Business Strategy Localization

HR-Enterprise Accountability

“The What” “The How”

14

Page 15: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

HOLD HR ACCOUNTABLE FOR ENTERPRISE IMPACT, NOT JUST TALENT OR FINANCIAL RESULTS

Talent Outcomes Financial Performance Strategic Enterprise Capabilities

Impact of Accountability on Asia HR’s Enterprise Impact

11%

18%

22%

Source: CEB 2013 Asia HR Impact Survey.n = 333.

Source: CEB 2013 Asia HR Impact Survey.n = 333.

59%

Talent Outcomes

22%

Financial Performance

37%

Strategic Enterprise Capabilities

Most Asia HR Functions Are Held Accountable Only for Talent OutcomesPercentage of Asia HR Functions Held Accountable, by Accountability Measures

15

Page 16: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

Country: South KoreaMETRICS WEIGHT JAN FEB MAR

Staff Service

Score

20%

Voluntary

Turnover

Management

Positions Filed

Internally

Manager

Training Hours

Wage Cost

Percent Versus

Total Revenue

Country: JapanMETRICS WEIGHT JAN FEB MAR

Staff Service

Score

20%

Voluntary

Turnover

Management

Positions Filed

Internally

Manager

Training Hours

Wage Cost

Percent Versus

Total Revenue

Country: IndiaMETRICS WEIGHT JAN FEB MAR

Staff Service

Score

20%

Voluntary

Turnover

Management

Positions Filed

Internally

Manager

Training Hours

Wage Cost

Percent Versus

Total Revenue

Country: ChinaMETRICS WEIGHT JAN FEB MAR

Staff Service

Score

20%

Voluntary

Turnover

Management

Positions Filed

Internally

Manager

Training Hours

Wage Cost

Percent Versus

Total Revenue

Region: AsiaMETRICS WEIGHT JAN FEB MAR

1. Staff Service

Score20%

2. Voluntary

Turnover25%

3. Management

Positions Filled

Internally

20%

4. Manager

Training Hours15%

5. Wage Cost

Percent Versus

Total Revenue

20%

EMBED ECOSYSTEM METRICS INTO (HR) FUNCTIONAL SCORECARDS

Marriott’s Asia HR ScorecardIllustrative

Note: The scorecard goals and weighting inform HR leaders’ MBOs and bonus calculation.

Strategic HR Scorecard Measures Traditional HR Scorecard Measures

Staff Service Defined: Staff Service is the overall guest satisfaction with Marriott’s service. Factors included in Staff Service are:

Arrival Experience Going the Extra Mile

Warmth and Hospitality Skills and Training

Responsiveness to Guest Needs

1Ecosystem Indicators Broaden HR’s Focus—Key ecosystem performance indicators focus HR on organizational impact.

2

9 8.5 7.5

20%

50%

10

55%

13%

55%

7.5

45%

16%

70%

5

40%

Unsatisfactory

Performing

Strong Performance

Key Performance

Flexible weighting allows local markets to tailor their scorecard for local business and talent conditions.

Example: Since voluntary turnover is low in S. Korea, less weight is placed on turnover and more on customer service— a strategic area of improvement in Korea.

Source: Marriott; CEB analysis.

16

Page 17: Transforming Asia HR's Enterprise Impact

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CO-DESIGN INTEGRATED FUNCTIONAL GOALS TO DRIVE ECOSYSTEM PERFORMANCE

Marriott Leaders Co-Design Functional Scorecards to Ensure Integrated ExecutionIllustrative

Function: Operations Month: March, 2013METRICS WEIGHT JAN FEB MAR

System and Process Execution

Analysis Accuracy

Staff Service Score

Management Positions Filled Internally

Budget Management

Function: Human Resources Month: March, 2013METRICS WEIGHT JAN FEB MAR

Staff Service Score

Voluntary Turnover

Management Positions Filled Internally

Manager Training Hours

Wage Cost Percent Versus Total Revenue

Function: Finance Month: March, 2013METRICS WEIGHT JAN FEB MAR

Profitability

Days Sales Outstanding

Cost per Vendor Invoice

Forecast and Analysis

Wage Cost Percent Versus Total Revenue

Function: Sales and Marketing Month: March, 2013METRICS WEIGHT JAN FEB MAR

Sales Volume

Sales Effectiveness

Profitability

Manager Training Hours

Customer Relationship Management

Regional Sales

Leader

RegionalBusinessLeader

Regional HR

Leader

Regional Finance Leader

Regional Operations

Leader

Marriott Asia’s “Goal Integration”

Session

1. Visualize and pressure test growth goals and strategies

2. Leaders present how their draft functional goals will drive growth strategy

3. Leaders discuss connections between and critique other functions’ goals

4. Leaders collectively finalize shared accountabilities to embed in each functional scorecard

Integrated Accountability ensures functions work collectively as one team.

Integrated Accountabilities

Source: Marriott; CEB analysis.

17

Page 18: Transforming Asia HR's Enterprise Impact

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TRANSFORMING ASIA HR’S ENTERPRISE IMPACT

Asia Root Cause 1Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities

Asia Root Cause 2Striving to Marginally Improve

Operational Effectiveness or Do More

Asia Root Cause 3Most Asia HR StaffCurrently Play an Operational or Administrative Role

Refocus Asia HR on Enterprise Impact

Redesign HR Services to Drive Enterprise Capabilities

Reposition Asia HR Talent as Enterprise Enablers

Center Asia HR Expectations and Accountability on Enterprise Impact

Reduce User Effort Drive Network Performance Through Individual Transformation

Prioritize Asia HR Investments Based on Enterprise Value

Design Regional HR Initiatives for Strategic Business Objectives

Anticipate and Shapethe Enterprise’s Future

Decorporatize (Select) HR Offerings

Engineer Productive Collaboration Within the HR Function

Repackage Services for Greater Local Uptake

18

Page 19: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

HR SERVICES NOT USER-FRIENDLY

Source: CEB 2013 Asia HR Impact Survey. Source: CEB 2013 Asia HR Impact Survey.

Few Employees Think HR Services Are Easy to UsePercentage of All Employees Agreeing or Strongly Agreeing

HR Overlooks User Effort in HR Service DesignPercentage of HR Staff Agreeing or Strongly Agreeing

32% Asia HR Makes

It Effortless to Receive Services

27% Our Function

Designs HR Services That Require

Minimum Effort for HR and Employees

n = 3,099. n = 333.

19

Page 20: Transforming Asia HR's Enterprise Impact

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DESIGN LOW EFFORT, PRODUCTIVITY-DRIVING SOLUTIONS

Mars’s Mobility-Enabled Recognition App

Accessible On-the-Go

Mobile app format makes it accessible anywhere and anytime, freeing employees to use it in the moment and on their own terms.

1 Simple User Interface

Simple app interface eliminates the need to login and navigate clunky, click-heavy intranet sites.

2

Source: Mars, Inc; CEB analysis.

20

Page 21: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

NOT APPLYING EVIDENCE AND EXPERTISE

Asia HR is Ineffective at Helping Business Beyond Traditional HR ActivitiesPercentage of Managers Rating Asia HR Effective At…

Hierarchical Management Impedes the Strategic Flow of Intelligence in Asia

Managing Traditional HR Activities

Helping in Product and Service Delivery

Formulating Business Vision and Strategy

Providing Business and Talent Intelligence

61%28% 23% 23%

Percentage of Respondents Disagreeing or Strongly Disagreeing

Percentage of Respondents Agreeing or Strongly Agreeing

15% My company

expects lower level/ younger employees to agree with and follow

management ideas without

question.

33% Asia HR

empowers me to creatively help the company innovate

and improve.

n = 2.308.

n = 3.448. n = 791.

Source: CEB 2013 Asia HR Impact Survey.

Source: CEB 2013 Asia HR Impact Survey. Source: CEB 2013 Asia HR Impact Survey.

21

Page 22: Transforming Asia HR's Enterprise Impact

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REDEPLOY EXISTING TALENT PRACTICES FOR ENTERPRISE—NOT JUST HR—IMPACT

The Costs and Benefits of Typical Mentoring Programs in Asia

Keys to Kimberly-Clark China’s Reverse Mentoring

TOP-DOWN TEACHING

Works in Asia’s hierarchical context

Fails to activate strategically critical insight latent in junior staff

HR OUTCOME FOCUSED

Can engage junior staff (but often feels forced)

Fails to meaningfully improveenterprise capabilities directly

Priorities and Purchasing Behaviors

Goal: Understand trends in younger generations’ values and purchasing habits■ What are younger employees working towards (getting married, buying a home,

starting a family)■ What are your main priorities in life? (career, family, friends, personal interests)■ How close with are you with your family? How does your families’ point of view

influence your choices?■ What are your favorite brands? Where do you like to shop & why?■ What influences your purchasing decisions?Communications and Technology Trends

Goal: Understanding how young talent get and share information, use technology

■ How do young professionals communicate?■ What trends do you see becoming more permanent (social media, social

networking etc.)

■ Gain understanding of a young employee’s communication style. How they

communicate opinions and ideas at work and at home?

Evolving Workforce Preferences

Goal: Understand how the younger generation thinks about their career

■ Why do young talent value careers and what are their motivations?■ What do young talent expect from the company they work for and how long will

they wait to get what they want before they leave.

Management Styles and Hierarchy

Goal: Understand how hierarchy impacts/influences younger employees4

3

2

1

Reverse Mentoring Program

Participant Contract

As a Mentor, I willFocus on the specific challenges that my mentee wants to understand more fully.

Share my relevant personal experiences in order to help my mentee get a clearer

picture of the cause and effect of these challenges.

Propose/brainstorm ideas and solutions to address the challenges we are discussing.

Suggest other challenges young professional’s face in the organization as appropriate.

Commit to and keep timely appointments.

Listen without being judgmental.

Respect confidentiality of matters discussed.

– My Mentee and I may mutually agree to share information publically at any time.

– Code of Conduct applies

As a Mentee, I will

Set a tone that encourages open dialogue

Mentee

Mentor

Rules of Engagement

Confidentiality and Openness

Listen, and probe without being judgmental

Brainstorm ideas and solutions to address the challenges

MenteeBe open to uncomfortable realities where applicable“Seek please, don’t tell” -avoid giving ‘my take’

MentorLead and drive the mentorship Focus on the objectiveShare personal experience and insight

Insight-Based Reversed Pairing facilitates rare staff-to-executive teaching.

1

Strategy-Focused Mentoring Guide centers exchanges on enterprise insight gaps rather than on individual career or HR agendas.

2

Collective Behavioral Commitment intentionallyneutralizes cultural barriers to upward insight flows in China.

3

Source: Kimberly-Clark China; CEB analysis.

22

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Priorities and Purchasing Behaviors

Goal: Understand trends in younger generations’ values and purchasing habits

■ What are younger employees working towards? (getting married, buying a home, starting a family)

■ What are your main priorities in life? (career, family, friends, personal interests)

■ How close are you to your family? How does your families’ point of view influence your choices?

■ What are your favorite brands? Where do you like to shop and why?

■ What influences your purchasing decisions?

Communications and Technology Trends

Goal: Understanding how young talent get and share information, use technology

■ How do young professionals communicate?

■ What trends do you see becoming more pertinent? (social media, social networking etc.)

■ Gain understanding of a young employee’s communication style. How they communicate opinions and ideas at

work and at home?

Evolving Workforce Preferences

Goal: Understand how the younger generation thinks about their career

■ How do young talent value their careers and what are their motivations?

■ What do young talent expect from the company they work for and how long will they wait to get what they want

before they leave?

Management Styles and Hierarchy

Goal: Understand how hierarchy impacts/influences younger employees

■ Communication gap between levels, generations and genders. Intent versus Interpretation

■ The reality of the masses. “High level” requests and demands often translate into a frenzy of additional work for

those who have to implement the request

4

3

2

1

STRUCTURE CONVERSATIONS FOR STRATEGIC —NOT JUST CAREER-FOCUSED—EXCHANGES

Kimberly-Clark’s Business-Focused Discussion GuideIllustrative

Standardized Guidelines Scalably Facilitate Targeted ExchangeKimberly-Clark provides mentors and mentees a guide to prepare for and have productive discussions.

Source: Kimberly-Clark China; CEB analysis. 23

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NEGATIVE PERCEPTION OF HR’S CONTRIBUTION IMPEDES HR SERVICE UTILIZATION

HR Is Viewed as a Compliance/Administrative Function, Not an Enabler of Competitive AdvantagePercentage of Managers Who Agree or Strongly Agree

62% Our HR Function in

Asia is More Focused on Compliance Than on Creating Competitive

Advantage

32% Managers Do

Not Use Most of the Services HR

Provides

19% Employees Do

Not Use Most of the Services HR

Provides

HR Services are Largely UnderutilizedPercentage of Managers/Employees Who Agree or Strongly Agree

Source: CEB 2013 Asia HR Impact Survey.

Source: CEB 2013 Asia HR Impact Survey.

Source: CEB 2013 Asia HR Impact Survey.

n = 2,308.

n = 2,308. n = 791

24

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UNLOCK THE POTENTIAL REGIONAL VALUE OF EXISTING—NOT INCREMENTAL—HR INVESTMENTS

Allergan’s Regional Root Cause Analysis Leads to Repurposing of Regional HR Solutions

Key Components of Allergan’s Regional Training Solution

Key Considerations to Analyze the Real Underlying Problem

1. What assumptions or biases present in the feedback?

2. Where does HR spend most of it’s time and investment currently?

3. What is unique about the Asia context that influences employees’ receptivity to HR solutions?

4. What is the 20% shift in our current approach that will lead to 80% impact?

Allergan’s Solution

Instead of investing in more training modules, unlock the value of existing training.

Situation: High Training Demand But Low Training Value Extraction

Asia Talent Review Feedback: Inexperienced managers in Asia need more training.

Engagement Survey Feedback: Managers/ employees wanted more training opportunities.

Personalize the Value and Ownership

1 Embed Context Flexibility for Local Relevance

3

Source: Allergan, Inc.; CEB analysis.

Certify Milestones to Motivate Learners in Asia

2

25

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TRANSFORMING ASIA HR’S ENTERPRISE IMPACT

Asia Root Cause 1Wrong Focus on Driving HR or Financial Outcomes, Not Enterprise Capabilities

Asia Root Cause 2Striving to Marginally Improve

Operational Effectiveness or Do More

Asia Root Cause 3Most Asia HR StaffCurrently Play an Operational or Administrative Role

Refocus Asia HR on Enterprise Impact

Redesign HR Services to Drive Enterprise Capabilities

Reposition Asia HR Talent as Enterprise Enablers

Center Asia HR Expectations and Accountability on Enterprise Impact

Reduce User Effort Drive Network Performance Through Individual Transformation

Prioritize Asia HR Investments Based on Enterprise Value

Design Regional HR Initiatives for Strategic Business Objectives

Anticipate and Shapethe Enterprise’s Future

Decorporatize (Select) HR Offerings

Engineer Productive Collaboration Within the HR Function

Repackage Services for Greater Local Uptake

26

Page 27: Transforming Asia HR's Enterprise Impact

© 2014 CEB. All rights reserved. CHREB8407114SYN

ASIA HR’S STAFF PERFORMANCE GAP REQUIRES PERSONAL MINDSET SHIFT

HR Function in Asia Significantly Younger and More InexperiencedAge Distribution of HR Staff

Asia HR Staff

23%

Asia

Source: CEB Asia and Global Labor Market Surveys.

Per

cent

age

of P

opul

atio

n

n = 12,834 (Global).

n = 3,073 (Asia).

40%Global HR Staff

CAREER

19

12

ORGANIZATION

10

7.3

Tenure in Years of HR Staff

Asia HR Professionals Lag Behind Their Global Peers on PerformancePercentage of HR Staff Exceeding Performance Expectations in Their Last Review, by Region

Rest of the World Asia

43%

66%

57%

34%

Under 40 Over 40

Note: “Asia” includes China, India, Japan, Singapore, South Korea, Indonesia, Malaysia, and Philippines. “Rest of the World” includes US, UK, Switzerland, Spain, South Africa, Russia, Mexico, Italy, Germany, France, Denmark, Finland, Sweden, Norway, Canada, Brazil, Belgium and Netherlands, Australia, and New Zealand.

Source: CEB H1 2013 Global Labor Market Survey.

Below Expectations

Meets Expectations

Exceeds Expectations

Global

Global

Asia

27

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Topic Selection Principles

1. Anchored on actual work, not

competencies

2. Practical, not theoretical

3. HR-specific for immediate value

4. Common development area

5. Deliverable virtually

ANCHOR STORYTELLING TOPICS ON WORKFLOWS, NOT JUST SKILLS

3M’s Monthly HRBP Storytelling Topic Selection ProcessIllustrative

Crowdsource Regionally Relevant Development Areas

3M’s Asia HR head crowdsources development areas based on gaps identified by country heads and their teams against the competency framework.

1 2 Filter Story Topics for Practicality in Day-to-Day Work

3M distills storytelling topics based on practicality and alignment with real HR workflows, rather than skills.

Regional HR Head

Country HR Heads

Country HR Heads

Selected Topics:

■ Local Strategy Creation

■ Metrics Use for Influence

■ Organizational Redesign

■ Translating Business Issues into HR Plans

■ Organizational Capability Development Tools

■ Engagement Best Practices

■ ……………..Source: 3M; CEB analysis.

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TRANSLATE LESSONS FROM SUCCESS STORIES FOR THE LOCAL MARKET CONTEXT

3M Asia’s Post-Storytelling Learning LocalizationIllustrative

Regional HR Head

HR Business Partners: China

HR Business Partners: Japan

HR Business Partners: India

Learning localization exercises help market teams reflect on opportunities and barriers to application, and adjust story takeaways for local application.

1

Accountability for Sharing Upward

Accountability for localizing and sharing feedback upwards with the regional HR head increases learner participation and engagement.

2

Reflection and Learning Localization Questionnaire Illustrative

1. Key Takeaways:

■ What were the key takeaways from the story?

■ What practical insights did we learn for our job?

2. Local Barriers to Utility:

■ What are the barriers we face in our country?

■ What would or would not work in our market?

3. Changing the Way of Working in the Market:

■ What can we begin replicating in our market immediately?

■ How will we change the way we work in our market?

4. Overall Feedback:

■ Was the storytelling session useful? Why or why not?

Source: 3M; CEB analysis.

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0%

20%

40%

34%

29%

24%

USE EXTERNAL—NOT JUST INTERNAL—

(TALENT AND COMMERCIAL) INSIGHT

Maximum Impact on Enterprise Contribution of Groups Across the Performance “Ecosystem”

n = 23,339.Source: CEB 2012 Corporate Leadership Council High Performance Survey.

Max

imum

Impa

ct o

n E

nter

pris

e C

ontr

ibut

ion

Closer Farther

Distance from Employee For example

■ Customers

■ Candidates

■ Vendors

■ Partners

■ Professional associations

■ Alumni networks

Team Manager External

Note: The maximum impact on enterprise contribution is calculated by comparing two statistical estimates: the predicted impact when an employee scores relatively “high” on a driver and the predicted value when an employee scores relatively “low” on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.

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EXTRACT (UNBIASED) CUSTOMER INSIGHTS FROM EXISTING SALES WORKFLOWS

Schneider Electric India’s HRBP Customer VisitsIllustrative

1 Leverage Existing (Cross-Functional) Workflows to Source Intelligence

Schneider Electric uses existing sales workflows to gain unbiased, high-value talent and business intelligence from external customers.

2 Use Flexible Guidelines to Allow HRBPs to Design Cu stomized Insight Exchanges

Schneider Electric India provides HRBPs the flexibility to collaborate with the sales employee to determine discussion questions based on the HRBP’s experience and HR and sales objectives.

Customer Visit Discussion Guide

Illustrative

Frequency: Once a quarter

Output:Report actions for HR and business leaders during monthly talent reviews.

My Key Questions

1.Business Insights:

Learn through silent listening and observation

■ Where does the business make or lose money?

■ How does the business serve this customer?

■ What are the top reasons customers cite for buying our products or services? 2. Talent Insights:

Draw implications through observation as well as direct questions■ What skills of the sales person draws the customer in?

■ What does the sales employee need for improving performance and productivity?

3. Brand Insights:

Ask customers pointed questions about the company for candid perspectives■ What are your perceptions of Schneider Electric India?

■ What are our strengths, weaknesses, opportunities, and threats?

CustomerSales

Customer

Sales+

HRBP

Source: Schneider Electric; CEB analysis.

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TRANSFORMING ASIA HR’S ENTERPRISE IMPACT

FROM:HR SERVICE PROVIDER

Asia Root Cause 1 Wrong Focus on Driving HR or Financial Outcomes, Not

Enterprise Capabilities

Asia Root Cause 2 Striving to Marginally

ImproveOperational Effectiveness

or Do More

Asia Root Cause 3 Most Asia HR Staff Currently

Play an Operational or Administrative Role TO:

ENTERPRISE ENABLER

Refocus Asia HR on Enterprise Impact

Redesign HR Services to Drive Enterprise Capabilities

Reposition Asia HR Talent as Enterprise Enablers

■ Drive for Talent or Financial Results

■ See HR transformation as a Change Event

■ Perfect HR Processes and Structures

■ Strive to Do More HR

■ Respond to Emerging Trends

■ Improve Individual Staff Performance

■ Develop Strategic Skills

Center Asia HR Expectations and Accountability on

Enterprise ImpactReduce User Effort

Drive Network Performance Through Individual

Transformation

■ Drive Enterprise Capabilities

■ Enable Transformation as a Strategic Capability

■ Anticipate Future Talent and Business Trends

■ Make It Easy to Do Business With HR

■ Embed HR Design and Delivery in the Workforce

■ Activate Asia HR Network Performance

■ Facilitate Personalized Change

Prioritize Asia HR Investments Based on Enterprise Value

Design Regional HR Initiatives for Strategic Business

Objectives

Anticipate and Shape the Enterprise’s Future

Decorporatize (Select) HR Offerings

Engineer Productive Collaboration

Within the HR Function

Repackage Services for Greater Local Uptake

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