From Capability To Profitability Talent management a priority for the C-Suite. London, 3 rd November 2015

Transcription

1 From Capability To Profitability Talent management a priority for the C-Suite London, 3 rd November 2015

2 Contents 1 The challenge of talent management 2 Select Top-of-the-Agenda talent trends 3 Example: Diversity & the talent management framework 4 EZ approach to talent 2

3 Part 1 The challenge of talent management 3

4 Interactive check-in Questions and answer options Where do you think the real estate industry ranks in 2015 regarding its positive workplace experience compared to other industries? a. In the top positions of the ranking b. In the middle ranks c. In the lower levels of the ranking 4

5 In the middle ranks Media 2 Biotechnology & pharmaceutical 3 Construction & real estate 4 Hospitality 5 Manufacturing & production 8 Retail 13 Healthcare 13 Education & training 1 Electronics 1 Engineering 1 Transportation 1 Professional services 20 Financial services 14 Information technology Professional services 2. Financial services & insurance 3. Information technology 4. Healthcare 5. Retail 6. Manufacturing & production 7. Hospitality 8. Construction & real estate 9. Biotechnology & pharmaceuticals 10. Media 11. Education & training 12. Electronics 13. Engineering 14. Transportation Source: Industry-Specific Strategies of Winning Companies Great Place to Work,

6 Interactive check-in Questions and answer options How important do you think it is to have a critical mass of exceptional (not just good) managers in your company compared to other factors (i.e. capital)? a. It makes no difference at all good managers are sufficient b. It makes a difference, but only a marginal one c. It makes a significant difference 6

7 It makes a significant difference A critical mass of exceptional managers has a disproportionate impact on corporate performance Competency scale Competencies 3 4 Thought leadership Revenue growth impact Correlation up to 1 People and organisational leadership Exceptional executives Executives with level 6 or 7 appraisals High 0.7 Very good executives Executives with level 5 or better appraisals Some 0.5 Business leadership Top quartile companies (revenue, n = 343 appraisals) Bottom quartile companies (revenue, n = 494 appraisals) 1 Share of top team members vs. overall revenue growth; Pearson correlations on individual competencies Source: Return on Leadership joint study by Egon Zehnder International and McKinsey & Company,

8 Part 2 Select Top-of-the-Agenda talent trends 8

9 Spotlight on 3 important topics and their impact on talent management 1 Millennials Talent management framework 2 Recruiting Text 6 Succession planning 2 Globalisation 1 3 Onboarding 3 Diversity Leadership development 5 Competency management 4 Performance management 9

10 A shift in the leadership paradigm is required to lead millennials as they will make up 50% of the workforce by Millennials Millennials Leadership challenge Care more about meaningfulness than money Mind-set shift is needed to connect with millennials, but credibility is essential Adjust emphasis of approach to address millennials (e.g. energy efficiency, sustainability) Make sure the messages you are sending out as a company are aligned with the reality of the employee experience Value training & development as most beneficial An understanding of the personal and professional goals of millennials is needed they want to be seen and led as individuals Develop individual concepts (e.g. assignment rotation; international secondments) While digitally native tailor-made solutions drafted and followed up on at face-to-face meetings are highly valued (e.g. coaches, mentors) Expect flexibility & like work More flexible working arrangements are needed millennials work well with clear instructions and concrete targets Set deadlines and if they meet them, don t worry where and when they complete the task Get the deal right it is important to explain what you can offer, but also what you expect in return. Millennials have special expectations but they also offer high technology affinity and a high motivation to develop and learn new things. Sources: Digital natives challenge HR leaders. Egon Zehnder, Survey of 154 alumni and 104 HR leaders in Germany. How the recession shaped millennial and hiring manager attitudes about millennials future careers. Career Advisory Board, Survey of 1,023 USA adults. Millennials at Work. Reshaping the workplace. PwC, Survey of 4,364 graduates across 75 countries. Mind the Gaps. The 2015 Deloitte Millennial Survey. Deloitte, Survey of 7,806 millennials across 29 countries. 10

11 2 Globalisation International diversification of real estate assets plays a key role in portfolio management Leadership challenge It is important to build teams that offer the best functional expertise around the world combined with deep local knowledge. Diverse top teams are also top financial performers. Mitigating social distance becomes the primary management challenge for global leaders. Geographically dispersed team members can perceive a power imbalance they often come to feel that there are in-groups and out-groups. Correct a perceived power imbalance by sending key messages ( The team is a single entity, We share a common purpose, I am there for you ) Emphasis the importance of empathy (feedback on routine interactions, unstructured time) VIEWS FROM A DISPERSED TEAM The senior real estate investment team of a global multi-asset class investment manager had members in different locations. Each group, depending on size and proximity to the leader in New York, saw the power structure differently. NEW YORK 8 people We do the important work and have easy access to the boss. LONDON 5 people We represent the most challenging regions in terms of diversity and competition for assets. The New York team really doesn t understand our markets. SINGAPORE/HK 3 people Our opinions with the best value potential are too often ignored. It s so difficult to find a good time to exchange ideas, and even if we do manage to connect, we can t get a word in edgewise. MOSCOW 1 person I am all on my own here and at the mercy of the New York group. I need to make sure the boss has my back. Source: Global teams that work. Harvard Business Review, / Egon Zehnder Sources: Global Real Estate Strategic Outlook. Deutsche Asset & Wealth Management, Global teams that work. Harvard Business Review, / Egon Zehnder Is there a payoff from top-team diversity. McKinsey,

12 Women are generally under-represented in the top management of real estate companies 3 Diversity Leadership challenge Aspire to reach top management After their university degree 9% -27 With more than two years of experience Make sure that there are no biases in your organisation assure an even playing field for every employee through total transparency in the way individuals are assessed, developed and promoted Confident that they can reach top management -1% Lack of supervisor support Overmentored, but undersponsored -11 Few role models -18% Foster sponsor relationships among senior-level employees and ambitious up-and-comers Expand the concept of role models - connect women to a variety of high-potential role models, regularly refreshing the connections as the employee s needs and focus change over time -12% Sources: EPRA, 2015; Property industry, where are you on gender diversity. EY, Everyday moments of truth: Frontline managers are key to women s career aspirations. Bain & Company, Why men still get more promotions than women. Harvard Business Review, Overcome your biases and build a great team. Harvard Business Review,

13 Part 3 Example: Diversity & the talent management framework 13

14 Spotlight on important topics and their impact on talent management 1 Millennials Talent management framework 2 Recruiting Text 6 Succession planning 2 Globalisation 1 3 Onboarding 3 Diversity Leadership development 5 Competency management 4 Performance management 14

15 and how it all fits into a systematic talent management framework taking diversity as an example Don t be biased e.g. have two interviewers; one male, one female Expand the concept of role models 2 Leadership development Talent management framework Recruiting Text 5 1 Competency management Succession planning Onboarding Performance management Focus on behaviours that generate impact vs. those that merely show commitment when communicating what good looks like Make sure not to be too dependent on candidates confidence in raising their hand Pay attention to the first two years they are important for aspiration and confidence Assure that only performance and potential are considered when it comes to promotions 15

16 Part 4 EZ approach to talent 16

17 Which dimensions are key for identifying & developing talent? Past Present Future Performance Past Outcomes; How abilities have been applied to get results Long-term track record Essential experience Readiness Fit between role requirements and current state Competencies Benchmarking Identity Culture Fit Personality Potential Traits that predict development of executive ability and the speed of that development Curiosity Insight Engagement Determination 17

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