1

Building a Global High Performance Workforce

TNLTHigh Performance Management Summit

Atlanta, Ga. USAMay 28-29, 2014

Dottie D. BrienzaMerck

2

Changes in the workplace landscape

• Borderless workplace

• Communication 24/7

• Younger, more transitory- diverse- dispersed workforce

• Flexible communications, social media

• Highly connected teams that include customers, contractors, partners

3

Challenges for HR

• Finding skilled talent• Building leadership bench• Supporting global organizations with

multicultural leaders and employees• Managing tremendous variations in labor

markets and cultural needs around the world• Determining how to re-engage employees• Deciding how to globalize HR strategies?

4

The world is flat

• 2005 Thomas L. Friedman, The World is Flat predicted the internet would:Create a single worldwide marketplaceEnable business process outsourcing and create global

supply chainsFuel the growth of China and India as world economic

competitors

5

The world is local

• Many predictions came true, however…– Growing disparity between markets and economies– World looks more like a global set of highly diverse

markets– “Local” business are more successful

• Pankaj Ghemawat, economist/ professor at IESE Business School said “globaloney”2012 data disputes the “world is flat” predictionsWorld is less connected than in 2007, and is more

“local” than ever

6

How can we meet the business needs of a globally local world?

•The biggest challenge is localization not globalization•Need to be globally local (GLOCAL)

- Global efficiency and consistency

- Global tools and best practices

- Speed and relevancy of local talent decision-making

- Empowered local managers

7

Let’s think about how HR adds value

• The full business benefit of HR comes from helping the business:–Make better decisions– Grow better leadership– Improve talent capabilities– Increase engagement and performance– Improve management skills

• Optimization of HR operations at most contributes 7% to business performance

8

HR’s impact on overall business performance

• HR’s ability to support the workforce, respond to the business, meet its goals

• Manager & employee effectiveness• Leadership capabilities• HR’s overall ability to impact workforce performance• External forces e.g. distance to nearest competitor, cost of raw materials,

and internal operations e.g. business unit performance, employee performance, sales & marketing

7%

8%

22%

63%

37%

9

So what does all this mean?

• “Localization” applies to any size business• Talent, learning, recruiting needs are different

around the world • HR and talent practices should be aligned with the

business strategy, and customers are often local

We need to localize our talent practices

10

Consideration #1Assess: What are your biggest areas of need? (Focus on areas of high importance to the business, with low preparedness or ability to deliver, AND will have the best ROI)

ACT

HIGH

HIGHLOWImportance to the Business Strategy

• Workforce Planning

Gap

in a

bilit

y to

del

iver

• Succession Planning &Strength of Leadership Pipeline

• Manager capability to develop employees

• Leadership Development

• Career development • Sourcing skilled talent

• Leveraging HR metrics

• Assessments

• Forecasting future talent needs

• Rewards & Recognition/ Comp.

• Manager capability to drive performance

• Retention of key talent• Recruiting/ Filling

Talent gaps

• Performance management

• Learning & Development

11

What matters? The reality is….

• Performance Management• Recruiting• Leadership Development• Learning & Development• Compensation

If you focus on these 5 areas, you will have addressed the majority of HR’s opportunity for ROI to the business

12

Consideration #2Comprehend: What considerations should you pay attention to in local markets where you operate?

ACT

• Use of Local Language vs. Company’ s primary language

• Works Council Requirements• Local Employment Laws• Privacy Laws and expectations• Labor practices• Standard work week and holidays• Compensation & benefits including

vacation • Size of employee population• Importance of market to the business

strategy

• Employee turnover rate• Availability of skilled talent• Availability of contractors, consultants• Strength of leadership and HR• Level of cross cultural fluency at

Corporate center• Strength of employer brand• Availability & ease of use of technology

(bandwidth, capability, regular power) • Level of political and economic stability• Importance of cultural norms including

religion

But don’t fool yourself……how could you possibly understand from 2,000 miles away?

Consideration #3Try these Tips: What have other companies done that are successful best practices we can use?

ACT

Provide Global Frameworks & Technology

• HR team at corporate center acknowledges, understands, integrates local solutions, and creates global frameworks

• Create common models, shared tools and technology based on best practices

• Provide infrastructure for collective intelligence

Build Local Capabilities

• Build and empower local HR teams to develop & deliver high-impact solutions within a larger global framework

• Establish HR business partners as local “co-pilots” to innovate, and focus on helping the local business succeed

Create Networks

• Establish cross company networks of people to understand global vs. local

• Create communities of practice with social software to support peer to peer collaboration

• Added benefit is the enablement of ability to source, engage and retain local talent

14

Ten Principles to consider1. Design programs globally, tailor and deliver locally2. Deploy SMEs locally, rotate in/out of COEs and HRBP roles3. Collect workforce data, manage and share it4. Optimize and/or outsource standardized processes, and build in

flexibility to meet new needs5. Use common technology, models, processes and tools with clear

governance rules allowing for respect of local culture and compliance6. Create communities of expertise to share, innovate solutions7. Build consistent data platforms to enable data driven decision-making8. Allow local HR to be empowered and fully partner with local leaders9. Expect business savvy HR leaders 10. Prioritize desired business outcomes to determine global vs. local

15

Thank you!

What questions do you have?

Acknowledgements/ Sources: Bersin by Deloitte: High-Impact HR in a Globally Local World, 2013David Ulrich and Wayne Brckbank: The business partner model: 10 years on Lessons Learned, 2008Thomas L. Friedman, The World is Flat, 2005Pankaj Ghermawat: DHL Global Connectedness Index 2012: Analyzing global flows and their power to increase productivity, 2012