creating sustainable change through organizational alignment and managing an increasingly diverse...

Copyright © 2008 Accenture All Rights Reserved.

Creating Sustainable Change through Organizational Alignment and Managing an Increasingly Diverse WorkforcePeter Cheese, Global Managing Director, Talent & Organization Performance, Accenture

NASSCOM India Leadership Forum 2008, Mumbai

2© 2007 Accenture all rights reserved

Economic – economic power is becoming more dispersed

• Growth of emerging market economies and multinationals

• Growth of multi-nationals in emerging markets

• New generational norms

Social – dramatic social change• A billion new customers will enter the global marketplace

• Climate change is seen as a reality and is driving changes in technology, regulation and investment

Technology – technological labor is no longer the preserve of developed economies

• Industrialized world is witnessing a shrinking pool of young skilled employees

• Governments of emerging economies are aggressively pursuing policies to move up the value chain

• Emergence of technology clusters and the global supply chain

Global market forces are leading to talent management and workforce challenges

Demographic challenges• Aging workforce

• Increasing female participation

Retaining and motivating the

workforce

• Increase in occupational mobility and work-life integration

• Growing polarization of workers

Skills crunch

• The rise of the knowledge economy

• A middle management gap

• Importance of skilled workforce from emerging economies


For the first time in history, four generations are in the workforce. Each generation has distinct characteristics and necessitate specific approaches to managing talent.

The talent management and alignment challenge is compounded by multiple generations in the workforce

Tenure

Silent Gen1

(1925 – 1942)

Baby Boomers1

(1943 – 1960)

Net Generation2

(1982 – 1998)

RetirementEntry into Workforce

Source:1 Howe, Neil; Life Course Associates, 2007. 2 New Paradigm – Net Generation Strategic Investigation; 2007; co-sponsored by Accenture

Generation Y

Generation X1

(1961 – 1981)


“… this generation is bigger than the baby boom itself, and through sheer

demographic muscle they will dominate the twenty-first century.”

—Wikinomics, Don Tapscott

The sheer size of the Net Generation cannot be ignored

Source: New Paradigm – Net Generation Strategic Investigation; co-sponsored by Accenture


Considerable Majority1 of Employees Understand Strategic Priorities

Considerable Majority1 of Employees Understand Their Contribution to Strategic

Execution

Agree 12%

Disagree 88%

6% Agree 17%

Disagree 83%

A Gallup survey of 3 million employees…

Engaged 29%

Not Engaged 55%

Actively Disengaged

16%

Accenture HPWF Study 2006

Engagement and alignment – what are the issues?

Declining loyalty and job satisfaction

• Falling employee loyalty and engagement, 5th year of decline (FT Nov 04)

• Key factors for people leaving work - lack of opportunity (37%), lack of incentives (28%), dissatisfaction with the corporate culture (28%), and lack of recognition or praise (25%) – Martiz Poll, World at Work Nov 06

Increasing lack of alignment

• As little as 5% of employees understand the corporate strategy (Kaplan and Norton 2004)

• 88% don’t believe most employees understand their firms strategic priorities (HPWF Study 2004)

Different Values of Generation Y

• Different value sets – life of jobs vs jobs for life, balance of life, corporate citizen values

• Higher expectations on integrity, feedback, opportunity


How well are we doing ?Key findings from the India High Performance Workforce Study

• Talent management – specifically the ability to attract and manage critical skills and leadership – emerged among the top 2 of 11 capabilities driving high performance

• Organizations by and large, are not equipped to manage and enable Change of the magnitude that is being experienced today

• Indian CEOs have rated the HR function as their most important workforce – but they believe there is a significant need to improve its performance

• A critical HR challenge - operation in a silo, with little support offered to and received from key workforces.

• HR needs to facilitate solutions to strategic business issues – Yet, the focus of HR today is on transactional activities potentially reducing the bandwidth for the transformational


Extensive C-Suite involvement in their human capital management initiatives

Focus support to workforces in the more strategic talent management areas of Learning and Change management; compensation is not a differentiating factor

Leaders are able create burning platforms boosting the “perceived need for change”

Leaders use metrics extensively to evaluate HR performance

What distinguishes Human Performance Leaders from the rest of the organizations?


Greater workforce diversity is the new norm and creates greater alignment challenges

Diversity today:

• Generational values

• Educational background

• Social background

• Ethnic and cultural diversity

• Geographic dispersion

• Type and style of working and learning

Leading to:

• Greater challenges for leadership at all levels

• Greater complexity of engagement

• Greater challenges for alignment and managing change

• Importance of alignment of values, measurement and objectives, organization, managing change etc


Talent

Aligning the dimensions

Leadership

Technology andBusiness Processes

Culture and Organisation

Execution Alignment

Results

Strategy

Informal aspects of how and with whom work gets done,

foundational values, norms, assumptions

Business infrastructure & mission critical

processes/systems

Understanding of talent needs

Integrated talent management capabilities

top down driven talent mindset and culture

Personal effectiveness of leaders,

leadership teams/groups, and governance processes

Customers, value proposition,

key priorities


• Experience is the best teacher of leadership

• Organizations can leverage experience and practice to grow more leaders, faster

• Leadership capability, particularly in managing people and diversity must be developed at all levels

• These behaviours and practices must be measured and rewarded

[coal]

[diamond]

Leadership Development

© 2007 Accenture all rights reserved

Understanding what actions to take that will give the best chance of success

Clear direction

Commitment by leaders

Accountability

Engaged teams

High Performance

On Track

Unsustainable

Off Track

Insight + Action = Successful change


New capabilities

A strategic and holistic view of talent management • clearly linked to business strategy and need

Expand the talent management agenda • to a broad and strategic focus on highly integrated systems and

talent management capabilities

New dimensions of talent management (examples)• New, more diverse talent supply chains

• EVPs and talent management support tailored to talent segments

• Technology enabled learning and job support, collaboration tools to support knowledge sharing and innovation

• Redesign of workflows to make best use of available talent


Foundation of efficient and integrated HR operations and support

Foundation of efficient and integrated HR operations and support

Discover Your sources of talent

DeployYour talent at the right place at the right time

DefineYour talent

needs

DevelopYour talent potential

Metrics and Analytics

Talent Mindset

Talent Culture

Business Strategy

Business Strategy

Talent Strategy

Talent Strategy

• Strategic context and understanding of current and future talent needs

• Integrated talent management capabilities

• Applied by different segments of workforce as needed

• Sustained by top down driven talent mindset and culture

Need for an integrated and holistic approach


The key imperatives - summary

Challenges are strategic and need a strategic response

Measurement and insight to drive actions and behaviours

Aligning culture and values, operating model, talent management, and leadership

Make leaders and line managers really accountable

Apply robust value and outcome measures to understand progress

creating sustainable change through organizational alignment and managing an increasingly diverse...

Business

workforce source

greater workforce diversity

important workforce

change importance of

ignoredthis generation

change management compensation

change leaders

hr performance