Global Talent Mobility: New Models for Success

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1 Global Talent Mobility: New Models for Success February 2013 Brian Kelly Partner, Mercer Lacey All Director, Starbucks Corporation

2 Today s Speakers Brian J Kelly Partner, Global Practice Leader, Workforce Analytics & Planning Mercer Lacey All Director, Strategic Talent Initiatives The Starbucks Corporation QUESTIONS? Please type your questions in the Q&A section of the toolbar and we will do our best to answer it. While in full-screen mode, simply use the Q&A button on the bottom right-hand side of your screen. While in half-screen mode, use the Q&A panel on the bottom righthand side of your screen. MERCER 1

3 Objectives for Today s Presentation Welcome and Introductions Talent Mobility & Workforce Planning in World Economic Forum Research Case Study: The Starbucks Corporation Q&A MERCER 2

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11 Agenda Welcome and Introductions Concept of Talent Mobility Case Study: The Starbucks Corporation Q&A MERCER 10

12 Workforce Planning Case Study COMPANY PROFILE 2012 Revenues: $13.3 billion Total Stores: ~ 18,000+ Global Footprint: Over 52 countries Workforce: 200,000+ worldwide (company-operated) Anticipated new hires over next 5 years: 375,000 Starbucks Confidential INTERNAL USE ONLY

13 STARBUCKS BRAND Since the beginning, Starbucks has been a different kind of company. One that is dedicated to inspiring and nurturing the human spirit. Committed to serving the finest coffee, creating an exceptional customer experience, and being a great place to work. Here are some of our recent awards and recognition: One of the 100 Best Corporate Citizens Corporate Responsibility Officer / Business Ethics One of the World s Most Ethical Companies - Ethisphere #1 Best Coffee in the Fast Food and Quick Refreshment categories and #1 Most Popular Quick Refreshment Chain - Zagat Survey One of The 100 Best Companies to Work For Fortune , One of the Most Admired Companies in America Fortune Among the 100 Best Global Brands BusinessWeek One of the Top 50 of the S&P BusinessWeek Best Coffee House, Germany Deutschland Institute for Service Quality 2010 One of the Global 100 Most Sustainable Corporations in the World Corporate Knights 2010 One of the Best Places to Work for LGBT Equality The Human Rights Campaign th Most Innovative Company, Fast Company, 2012

14 ABOUT US It happens millions of times each week a customer receives a drink from a Starbucks barista but each interaction is unique. It s just a moment in time just one hand reaching over the counter to present a cup to another outstretched hand. But it s a connection. We make sure everything we do honors that connection from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly. From our beginnings as a single store over forty years ago, in every place that we ve been, and every place that we touch, we've tried to make it a little better than we found it.

15 BUILDING FOR THE FUTURE Investing for disciplined and profitable growth to create long-term shareholder value Deliver enhanced customer experience Drive operational leverage Deliver relevant innovation and profitable growth platforms through multiple channels "We are building a solid and secure foundation for profitable growth in both new and existing businesses," Schultz said. "Our next phase of growth will come from extending the Starbucks Experience to our customers beyond the third place to every part of their day, through multiple brands and channels. Starbucks U.S. retail business and our connection with our customers form the foundation on which we build all of our lasting assets, and we will combine that with new capabilities in multiple channels to accelerate the model we've created that no other company can replicate AND INNOVATE BEYOND STARBUCKS STORES

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17 SWP OUR PERSPECTIVE To be strategic, workforce planning efforts must: Be aligned with the business strategy Focus first on the roles that impact the business strategy most significantly Leverage both quantitative and qualitative measures of the workforce currentstate and future-state perspectives Result in action plans owned and monitored by the business Be embedded into the broader enterprise-wide strategic planning process 16

18 ORIGINS OF SEGMENTATION Workforce Segmentation borrows from other organizational functions with disciplined approaches for making capital decisions. Most notably: Finance/Accounting uses logic and methods that use accounting data to improve decisions about financial assets ROI Net Present Value (NPV) Marketing Departments subdivide a market along some commonality, similarity, or kinship. Customer Segmentation Market Segmentation Store Segmentation

19 WHY SEGMENT? Workforce Segmentation allows an organization to focus on the critical few that will impact strategy the most. With workforce segmentation, organizations can prioritize talent management activities to ensure the impact is relevant to people, positions or pools that are aligned to the long-term success of the organization. Activities include: Sourcing Marketing & Employee Value Proposition Campaign development Talent/Skills Development Reward and Recognition Career Paths/Succession Planning

20 STRATEGIC PLANNING Segmentation Workforce segmentation is about taking the larger workforce (internal and external) and breaking it down into categories based on strategic importance. It s about understanding where human capital makes the biggest difference to your organizations strategic success. Individuals have different interests, resources, values, family requirements and want different things from a job. A segment is a grouping of these individuals that share common interest, wants, needs etc., yet are unique from other segments 3 Areas: Pools: where current and future talent comes from People: who is most critical to current and future strategy Positions: roles (not people) that are critical to success

21 What are Pivotal Roles? All Roles Core Roles Over 200,000 Starbucks partners worldwide Necessary for success, support general business operations Pivotal Roles Differential Starbucks as a leader in the global marketplace 20

22 PIVOTAL ROLES Purpose: to develop a framework to identify roles across the organization as pivotal to the current and future core business strategy using qualitative and quantitative measures Strategic Imperative: to ensure Starbucks has the right talent to be flexible and strategic in responding to current and future economic and business innovation demands Objectives: Provide leaders with an on-going, objective decision science [1] (or framework) for making business decisions with regard to talent Ensure resources are deployed against pivotal roles Understand Starbucks Profit Model(s) [2] and connect it (them) to how we invest in pivotal talent [1] Boudreau, J. W. & Ramstad, P. M. Talentship and the New Paradigm fro Human Resource Management. Human Resource Planning. 28, 2. Defined as: A logical, reliable and consistent framework that enhances decisions about a key Resource, wherever those decisions are made. [2] Slywotzky, A. & Morrison, D. The Profit Zone. New York: Times Business, Random House How profit happens in an organization, the sources and drivers of profit.

23 2013 Starbucks Pivotal Roles 10 Pivotal Roles live at the intersection of all three drivers of success Starbucks Experience Cultivated at stores with moments of connection Grows with product connections Enhances in digital space Shareholder Value Stewardship over core businesses Develops portfolio Profitability Reduces costs Drives growth Unlocks value 22

24 LESSONS LEARNED HR Business Partner capability critical to Workforce Planning success Build a scalable portfolio that can be nimble to the changing business need Segmentation aligns your efforts to the priorities that make the most impact to the strategic imperatives of the organization

25 Questions Starbucks Confidential INTERNAL USE ONLY 24

26 Agenda Welcome and Introductions Concept of Talent Mobility Case Study: The Starbucks Corporation Q&A MERCER 25

27 Resources Available Mercer Workshops Workforce analytics & planning workshops at client locations or in partnership with the American Management Association MERCER 26

28 Resources Available Mercer Workshops AMA/Mercer Workshops Date City Topic 3/18 NYC Strategic Workforce Planning: Defining and Fulfilling Business Requirements 4/22 NYC Moving from Data Smog to Cloud 9: Assembling a Relevant Data Engine 4/23 NYC Workforce Analytics and Planning Execution: Building a Center of Expertise 5/13 Chicago Workforce Metrics and Analytics: Driving Business Results with Data 5/20 Wash D.C. Strategic Workforce Planning: Defining and Fulfilling Business Requirements 6/7 San Fran Workforce Analytics and Planning Execution: Building a Center of Expertise 7/1 San Fran Moving from Data Smog to Cloud 9: Assembling a Relevant Data Engine 7/8 Wash D.C. Workforce Metrics and Analytics: Driving Business Results with Data Client On-Site Workshops Date City Topic 5/1 Houston Driving Business Results with Data MERCER 27

29 For more information Mercer be in the know blog Mercer subject matter experts and guests will help you discover tips and trends, and will offer advice to questions you may have. Mercer Analytics website Next generation metrics and analytics solution that combines disparate data and Mercer s intellectual capital, consulting services and technology. Mercer Webcast series MERCER 28

30 Speaker Biographies Brian J Kelly Brian is a Partner at Mercer and is the global leader for the Workforce Analytics & Planning Practice. Brian recently served as the Co-Chair the Institute of Human Resources Workforce Planning & Analytics Working Group and Vice Chair of the Society of Human Resource Professional's (SHRM) workforce metrics taskforce. Prior Mercer, Brian was the President, North America of Infohrm, the recognized industry leader in workforce reporting, analytics and planning solutions across the globe. Brian led Infohrm's North American operations and was responsible for the firm's global sales, marketing and partner strategy leading to the firm's acquisition by SuccessFactors in July Prior to leading Infohrm, Brian served in a variety of management and leadership positions in the software, services and investment management industries with such firms as DoubleStar, Inc. and SEI Investments. Brian is a graduate of Boston College MERCER 29

31 Speaker Biographies Lacey All Lacey All leads the Strategic Initiatives Team function at Starbucks Coffee Co. which includes strategic workforce planning, global employer brand and sourcing initiatives teams for Starbucks Coffee Co. Lacey began the workforce planning function in 2006 and drives both operational and strategic workforce planning to help enable better business decisions by connecting and directing workforce management activities and decision making. The strategic workforce planning team conducts research and analysis to support workforce planning and is responsible for developing market, business and financial modeling for talent forecasting in addition to the formulation of strategic workforce plans for individual roles and business units. In addition to the workforce planning team Lacey leads the employer branding team and strategic sourcing teams. Lacey is responsible for the global employment value proposition (EVP) and employment brand campaign and oversees talent acquisition channels, Internet tools, social media and web 2.0 platforms (e.g Facebook, Twitter, Linkedin, SEM/SEO, mobile) with a laser focus on ROI for recruiting and diversity initiatives. Lacey has also established global sourcing processes across the business as well as lead the effort around business-line sourcing frameworks and candidate segment specific outreach efforts. Lacey has held a variety of positions within Starbucks including roles within the retail, operations and partner resources organizations. Lacey also serves as the founding President of the Starbucks Pride Alliance Partner Network and sits on the Board of Directors for the Human Rights Campaign. MERCER 30

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