bme pmm bme-ecube young purchasing talent development … · pre-hiring onboarding oj-training /...

BME-Ecube Young Purchasing Talent Development BootCamp BME Purchasing Manager Meeting

10 June 2015

China’s Talents need upgraded skills, yet existing talent development concepts do not have the desired effect on driving business performance.

The Talent Development Challenge

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Execu1ve leadership team

Midlevel management

Technical specialists

Frontline employees

Frontline supervisors

Extremely/very effec1ve Somewhat effec1ve Slighty/not at all effec1ve Don't know

Effectiveness of education programs in preparing given group of employees to drive business performance

Source: McKinsey Global Survey 2010

Currently, companies often invest their training budget in a variety of low-price, standardized, stand-alone trainings with little impact on job performance.

The Talent Development Challenge The skill gap cannot be filled efficiently by traditional skill development formats.

10 June 2015 Slide 3

Existing company programs result in long time-to-performance.

Value Skills

Time

Current focus of Talent Development

Pre-Hiring Onboarding OJ-Training / Mentorship

Skill Training

Full Performance

Skill gap

Value Skills

Time



Skill Training

Full Performance

Skill gap

The Talent Development Challenge The early involvement principle shows that the relative benefits for developing employees are highest early on in their careers, while the relative costs are lowest.


The earlier companies get involved in developing their employees’ skills, the more impact their initiatives will have.

Impact on skill development

Costs for further development

One of our clients decided to get involved early and go with a different approach to solve his

Talent Challenge.

Case study


Meet General Manager Hu:

•  General Manager since 2012

•  Engineer, but a Philosopher at heart

•  Born in early 1960’s

•  Needs help finding, developing and integrating fresh Talent

Case study Supplier of electronic components and solutions opens new plant.


GM Hu needs to build a PUR team from scratch to support the new plant.

Meet his company:

•  Industry: complex electronic components and solutions

•  Location: N. China

•  PUR Vol.: ~ RMB 325 million

•  Suppliers: ~ 140

•  POs: ~ 3.600

Case study The company’s strategic change towards a professional region-for-region purchasing organization demands the creation of a new purchasing team.


Professional region-for-region approach is expected to generate savings of up to 30% (~ RMB 98 million).

Company strategy:

•  So far, GM Hu's company has produced components for subsidiaries of selected European customers in China.

•  Sourcing was conducted on a small scale and supported from German HQ.

•  Now, sourcing for Asia-Pacific and large-scale localization of production for China is planned. This requires:

–  Regional purchasing of more complex parts and components.

–  Set-up of regional supplier portfolio.

–  Professional indirect purchasing.

–  Building PUR team by hiring 9 fresh Talents for future growth.

Case study Several challenges have resulted in a delay of the ambitious purchasing targets.


Expected savings target of 30% (~ RMB 98 million) was not achieved due to delay in developing high-performing PUR team.

Key challenges:

•  Multiple issues within existing team of experienced buyers.

•  Existing team was trained without visible effects on team performance.

•  Recruitment agencies failed to find adequate fresh Talent.

•  Hired Talent lacked capabilities to hit the ground running.

Value Skills

Time



Skill Training

Full Performance

Skill gap

Case study In order for GM Hu’s team to hit the ground running, we made use of the Early Involvement Principle to increase the impact and ROI of his investment.


According to the EIP, the earlier companies get involved in developing their employees’ skills, the higher the relative benefits and the lower the costs (à increased ROI ).

Impact on skill development

Costs for further development

“We need to find and integrate 9 fresh Talents with an excellent technical background.

We can then develop their purchasing and interpersonal skills.”

The approach


The approach We followed a pragmatic approach to help GM Hu solve his Talent Challenge by focusing only on what works and discarding the rest.


Our recruitment specialists helped GM Hu find, assess and select a number of adequate candidates, 9 of which successfully completed our customized skill development program.

>>> Find >>>

>>> Assess >>>

>>> Select >>>

>>> Develop >>>

3 weeks of intensive, rigorous personal and professional skill development

6-12 months of individual and tribal coaching

Focus on hard, soft and methodical skills

Built according to our client's specific situation

Post-Hiring Skill Customization

The approach Program design principles.


We made sure to base the program design on sound principles to achieve the desired effects on an individual and organizational level and effectively support GM Hu’s company.

Research- & data-driven Experiential Real-life

Personalized Holistic Relevant

The approach Program curriculum.


The program design resulted in a curriculum, which focused on increasing GM Hu’s team’s effectiveness in all areas relevant to their individual and the organization’s success.

Week 1

Week 2

Week 3

Understand Yourself

Understand Others

Understand Purchasing

Do Purchasing

The approach Program timeline.


The activities were integrated based on the latest Talent Development research and on GM Hu’s specific requirements. This ensured optimal learning effects and company relevance.

Tribal coaching

Talent Development activities

Personalized learning path

1:1 coaching

Initial assessment 99.9% of activities are designed to have job & company relevance

Impressions.


The approach

Training 1:1 Coaching Tribal Coaching

Project Work Team Building Survival Training

Personalized Learning Sense making Networking

Key results included improving individual time-to-performance, building a functioning team and saving GM Hu time and money in growing his

organization for the future.

The results


The results The program significantly improved time-to-performance.


By substituting standardized, stand-alone training initiatives with an intensive, focused and holistic program, we significantly improved time-to-performance on our path towards 100%.

Value Skills

Time



Skill Training

Full Performance

Skill gap

Post-Hiring

Skill Customization

The results A functioning team was formed within a short period of time.


GM Hu received a team that already had a good idea of its strengths and weaknesses and was ready to hit the ground running within only 4 months.

•  4 months till project completion

–  3 months recruitment + 3 weeks talent development

•  Helped GM Hu find adequate candidates that would perform both as individuals and as team members:

–  Increased sense of loyalty among group members and towards company

–  Increased sense of purpose: “WE”

–  Loads of fun!

•  The team is already on its way to achieve the company’s cost saving targets.

The results The program was a significant investment for GM Hu, but in the end it more than paid off.


Compared with the “100% Scenario”, the Year 1 savings in the “80% Scenario” amount to +280,000 RMB, while savings after two years amount to +1,213,120 RMB (ca. 24,1%).

80% Scenario:

Candidate criteria:

9 x 80% candidate 5+ years experience

ENG + basic PUR

Monthly gross salary: 12,000 RMB

Annual gross salary: 144,000 RMB

Annual PUR team gross: 1,296,000 RMB

Recruitment fee 25%: 324,000 RMB

Program fee: 800,000 RMB

1st year costs: 2,420,000 RMB

2nd year costs: 1,296,000 RMB + 8% salary increase = 1,399,680 RMB

Total costs 2 years = 3,819,680 RMB

100% Scenario:

Candidate criteria: 9 x 100% PUR candidate 10+ years experience

ENG + PUR

Monthly gross salary: 20,000 RMB

Annual gross salary: 240,000 RMB

Annual PUR team gross: 2,160,000 RMB

Recruitment fee 25%: 540,000 RMB

1st year costs: 2,700,000 RMB

2nd year costs: 2,160,000 RMB + 8% salary increase = 2,332,800 RMB

Total costs 2 years = 5,032,800 RMB

The results What else did we achieve?


A Happy General Manager Hu J

•  A unique Purchasing Talent Development program that:

–  Improved time-to-performance of recently hired Talent.

–  Upgraded skill base of existing and fresh Talent with latest PUR input.

–  Provided competitive advantage for talent management as talent incentive.

–  Provided HR and PUR with hassle-free organization of complex program.

–  Included the possibility to develop a customized program revolving around specific business issues of GM Hu’s company.

–  Provided significant savings compared with hiring only 100% candidates.

Summary Which were the most important benefits General Manager Hu received?


Out Post-Hiring Skill Customization Program provided GM Hu with a unique format to attract, develop and retain PUR Talent, while ensuring that their skill base is up-to-speed.

ContactDr. Saša Šarić Managing Director Ecube

[email protected]

www.ecube-china.com

Anton Pietsch General Manager BME Asia

[email protected] www.bme.de/china

bme pmm bme-ecube young purchasing talent development … · pre-hiring onboarding oj-training /...

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