Critical Success Factors: Make your Saudisation Programme work

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Critical Success FactorsMake your Saudisation
Programme work
Professor William Scott-Jackson 0044 7785
110910 wsj_at_cahrr.org
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Research

• Survey of GCC Nationals and ex-pats
• In-depth interviews with over 40 major best
  practice GCC organisations
• Public and private
• Locally owned, Western and Asian
• Action Workshop and focus group with 20 major GCC
  employers

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Talent in the Middle East
The Middle East is losing out in the global
battle to produce and attract the world's most
talented workers, Global Talent Index 2007
Skills shortages limiting companies ability to
grow . (Gulf Talent 2007)
Increasing challenge for GCC employers to attract
what has been the main source of affordable
talent, as gap narrows between Indian and Gulf
packages.
Nationalisation particularly building strategic
capabilities and leadership
UAE Investment firms facing influx of clients but
a shortage of professionals to serve them. (Moss
Adams 2007)

• Infosys recruiting US graduates to study in India
  then work in Infosys back office in US.
• Tata outsourcing to back office in Mexico Wipro
  to China, Saudi and US Infosys to Poland and
  Thailand.
• Company in the US pays an Indian Vendor 7000
  miles away to supply Mexican workers based 150
  miles south of the US border (New York Times 29th
  Sept)

Underemployment, particularly among young men
Womens increasing success in workplace
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Main conclusions Best Practice
NOT BEST PRACTICE!
BEST PRACTICE
Meeting quotas
Maximising a strategic resource
Recruitment
Talent Management
Placing nationals in easy roles
Identify strategic capabilities and plan
Career Fairs etc
Create great place to work
Start early (school) and with families
Focus on young adults
Target Graduates
And older, less qualified, women etc
Compete for nationals
Collaborate by sector
Government, Education, Society
Get on with it!
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Best Practice Major conclusion
Talent Management not quotas
Talent Management not quotas
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Saudisation as Talent Management
Talent Management
Developing Deploying Talent
Talent Strategy Planning
Acquiring Talent
Retaining Talent
Summary and Key action areas
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Competing or complementary employmentand
Demographics
Competing jobs are those that are equally
suitable and desirable for nationals and ex-pats.
Complementary roles are those which are
specifically suitable or desirable to be filled
by nationals rather than ex-pats OR specifically
suitable or desirable to be filled by ex-pats
rather than nationals Demographics if the
national plan produces a low of nationals (as
in the UAE) then most jobs can be complementary
as we need to be extremely choosy about the jobs
our scarce nationals do. If nationals are a high
proportion then many jobs will be competing and
we must ensure that nationals are well-equipped
to compete. Mistake is to act as if jobs are
competing when in fact they are complementary.
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DemographicsNationals as small proportion of
workforce
Leadership roles
Specialist roles (sector e.g. oil or function
e.g. HR)
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DemographicsNationals as small proportion of
workforce
Leadership roles
Specialist roles (sector e.g. oil or function
e.g. HR)
Mostly talent management problem Identity and
develop strategic capabilities
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DemographicsNationals as large proportion of
workforce
Leadership roles
Specialist roles (sector e.g. oil or function
e.g. HR)
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DemographicsNationals as large proportion of
workforce
Leadership roles
Specialist roles (sector e.g. oil or function
e.g. HR)
Mostly talent management problem But also
employment, quotas and ex-pat restrictions
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High-Precision Strategic NationalisationResourced
-based view of the firm
The competitive market
E.g. innovative capacity, ability to exploit
knowledge Negotiating ability Openness to other
cultures Gulf Arab mgmt style Religion/Culture
Firm C
Firm X Competitive Advantage
Firm A
Firm B
Firm X
Firm D

• The X factor A differentiating capability
• Valuable (in relation to the market)
• Rare
• Hard to imitate
• Hard to substitute
• Owned by you

Barney, J.B. and Clark, D.N. (2007)
Resource-Based Theory Creating and Sustaining
Competitive Advantage. Oxford University Press,
Oxford
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Linking Strategic intent and capability measures
Organisation
Strategic Intent
Differentiating capability
Frontline staff that are friendlier and more
helpful than anyone elses
High customer retention and recommendation
through exceptional customer service
Global Bank
... extend its reach into new technologies,
services and markets to create opportunities for
our customers
Leading technical innovators, top international
marketing expertise (retention)
Telecomms
Dubai Malls Group
World leading expertise in Mall design and
customer psychology
Rapid expansion through providing retailers with
more footfall
... that citizens are able to benefit from the
country's increasing wealth
Exceptional percentage of population as leaders
ready to manage
The United Arab Emirates
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The process
1. Identify strategic intent (goals/imperatives)
Senior Management workshop to engage, get the
facts and create ownership
2. Identify key people capabilities to achieve
strategic intent
3. Identify drivers to maximise and differentiate
each capability
In-depth research to identify unique drivers
(e.g. of friendliness)
4. Identify key roles by strategic value
5. Programme to develop and measure key
capabilities and key roles
Implementation Project
6. Metrics to show investment and improvement
over time - ROI
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Developing and deploying talent
Talent Management the threat and the opportunity
Developing Deploying Talent
Talent Strategy Planning
Acquiring Talent
Retaining Talent
Summary and Key action areas
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The Development Process
Talent strategy
Role Profile Competencies qualifications
experience know-how personal skills know-who
values
Define requirements
Organisations talent needs for the future
Target role
Process to plan and monitor progress
Process for dialogue
Gap to be closed through development
Dialogue between organisation and
individual, matching company needs and individual
aspirations
Assess/agree competencies
Individual Profile Competencies qualifications
experience know-how personal
skills know-who values
Individuals aspirations for the future
Current role
Identify and share aspirations
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Scott-Jackson, W.B. Mayo, A. Rushent, C (in
prep) World-Class Learning and Development the
major success factors,
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Methods of delivering learning Impact on
knowledge retention

• Method Retention
• Lecture 5
• Reading 10
• Audio Visual 20
• Demonstration 30
• Discussion Group 50
• Practice by Doing 75
• Teaching others 90

Most widely used method
Least used
Never used (except informally?)
Jennings, C. (2007) Why stand and deliver s
never enough, Presentation to the IITT Conference
June 2007.
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Part 4 Retaining Talent
Talent Management the threat and the opportunity
Developing Deploying Talent
Talent Strategy Planning
Acquiring Talent
Retaining Talent
Summary and Key action areas
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Global Bank 2007
Well done! Weve cut staff turnover from 16 per
year to only 10!
Weve kept 12 more of our worst people and
lost 6 more of our best people!
Modified from Harvard Business Review Oct 2007
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Retention A differentiating strategic capability

• Survey of 500 Global organisations
• 68 - retaining talent is far more important
  than hiring
• Over 50 altered salaries, bonuses or stock
  options to try and retain talent
• Only 27 tried to provide employees with
  advancement opportunities
• Organizations continue to struggle with retention
  because they rely on salary increases and bonuses
  to prevent turnover.
• Why doesnt this work?

Accenture "The High Performance
Workforce Separating the Digital Economy's
Winners from Losers
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Dimensions of Staff Turnover

• Involuntary -
• organisation decides not to retain the staff
  member (or retain).
• Voluntary -
• individual decides to leave the organisation (or
  stay).
• High Value or Low value capability
• Short term and long term
• Risk of quitting

POINT If someone of low value to the
organisation is at high risk of leaving
voluntarily - encourage and celebrate!
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Some turnover is OK!
Involuntary
Voluntary
Type B
Type A
Inadequate selection for dismissal etc
Retention Problem
High
Value to the organisation
Type D
Type C
Career development moves, management coaching etc
Dismissal, etc
Low
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How to reduce turnoverThe Quitting Process
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Type B Turnover - When to attack
Stage
Job Satisfaction Self-esteem Management
Main factors
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Plan/process to increase retention of the best
people?
Identify high value groups/individuals
Regular confidential Insight survey/interview
to identify high risk groups/individuals
Managers agree individual and group actions
Actions and monitor via survey
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Summary Targeted Retention resourcing at its
best!

• Retention much more cost effective than
  replacement
• Retention must be targeted
• Aim to minimise involuntary quitting (low or high
  value)
• Take control/influence over voluntary staying and
  quitting
• Need information segment the internal market
• Who is valuable?
• Who is at risk?
• What they think
• What they want
• Need deliberate highly targeted action -
  Marketing
• Demonstrable, significant savings possible!

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Part 5 Meeting the Global challenge for
TalentAcquiring Talent
Talent Management the threat and the opportunity
Developing Deploying Talent
Talent Strategy Planning
Acquiring Talent
Retaining Talent
Summary and Key action areas
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Global conglomerate 2003
PANIC!! We need a new Group Finance Director
Urgently!! Call Oxford Strategic Resourcing to
find us one quick!!
Did he die suddenly?
No He retired
What about Abdullah in your Metals Division?
Who?
Well who do you really respect in the market?
Duuurgh?
Modified from Harvard Business Review Oct 2007
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Oil Co 2007
PANIC!! We need to find exploration engineers
urgently!! Call OSC to find them!!
No HR said wed have a problem 5 years ago
Is it a sudden requirement?
What about retraining your process engineers?
Who?
Well who do you know in the market?
Duuurgh?
Modified from Harvard Business Review Oct 2007
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Strategic Talent AcquisitionLeading edge
tactics?

• Know what you are looking for!
• A strategy to define, build and retain the
  required capabilities
• Proactive continuous talent search
• Search out the right people dont wait for them
  to come to you
• Look continuously for key skills dont wait
  till you have vacancies
• Global Talent intelligence
• Know where the best talent is and how to reach it
  continuous research
• Web based geographic database of universities,
  competitors, alternative employers etc
• Tracked database of global potential national
  hires traced from University through career and
  including searches, applications, etc
• Internal Talent Market
• Line managers build and protect their own
  national talent
• Internal search helps make sure it ends up in the
  best place
• Is it better for one of your nationals to be
  poached by a competitor or a colleague?

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Meeting the Global challenge for Talent
Talent Management the threat and the opportunity
Developing Deploying Talent
Talent Strategy Planning
Acquiring Talent
Retaining Talent
Summary and key action areas
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Talent Trading Co 2010
We know what strategic capabilities we need and
are recruiting and developing nationals to meet
those needs year on year We know our future
resource flows and plan accordingly
Nationals develop themselves using the best
methods to build capabilities that are important
to them, the organisation and the country
Identify critical talent that must be retained We
use monthly surveys to assess propensity to
leave Intervene at early stage of the leaving
process
Create Talent Intelligence web tool to allow
external succession Continuous research for
potential external national talent We actively
search for national talent internally and
externally
(Modified from Harvard Business Review Oct 2007)
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Thank you!
William Scott-Jackson wsj_at_cahrr.org 44
7785110910