Cross-Border Executive Mobility as a Strategic Advantage People Risk Mitigation And Leadership Development Lessons from the Top Companies for Leaders - PowerPoint PPT Presentation

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Cross-Border Executive Mobility as a Strategic Advantage People Risk Mitigation And Leadership Development Lessons from the Top Companies for Leaders

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Title: Cross-Border Executive Mobility as a Strategic Advantage People Risk Mitigation And Leadership Development Lessons from the Top Companies for Leaders


1
Cross-Border Executive Mobility as a Strategic
AdvantagePeople Risk Mitigation And Leadership
Development Lessons from the Top Companies for
Leaders
  • Cincinnati Chapter
  • European American Chamber of Commerce
  • 27 September 2012

2
AON The Global Risk Advisor and Human Resource
Solutions Provider
Aon
Total Colleagues 59,000
Aon Benfield (Reinsurance)
Aon Hewitt
Aon Risk Solutions
  • 29,000 Colleagues
  • Consulting
  • Benefits Administration
  • HR Business Process Outsourcing
  • 26,500 Colleagues
  • Retail Brokerage
  • Risk Assessment and Advisory
  • Claims Advocacy and Administration
  • Captive Management
  • Affinity Programs
  • 3,500 Colleagues
  • Analytics and Technical Services
  • Facultative Reinsurance
  • Investment Banking
  • Practice Groups
  • Client Services
  • Treaty Reinsurance

120 Countries 500 Offices
3
Agenda
  • People Risk
  • What is People Risk and What is Measured?
  • High and Low Risk European Cities
  • Recruitment, Employment and Redeployment
    Risks
  • Case Study
  • Top Companies for Leaders
  • About Our Research
  • Global Mobility Overview- Key Trends
  • Global Mobility Philosophy and Process
  • -How Top Companies Develop Leaders through Cross
    Border Assignments

4
What is People Risk and Why is it Important?
  • Human capital risk is seen to be the most
    significant threat to global business
    operations1.
  • As companies become more global, there is an
    increasing need for understanding location
    profiles for talent.
  • Talent pools vary across locations and thus
    companies have to adjust their talent strategies
    to address the risks associated with talent in
    those locations.

1 Best Practices in Risk Management A Function
Comes of Age A report from the Economist
Intelligence Unit Sponsored by ACE, IBM and KPMG
5
Key People Risk Issues
Manage the risks of relocation to lower-cost
locations? Identify the appropriate leader for a
new operation? Cope with talent and skills
shortages? Improve workforce planning for
global expansion? Source qualified and
experienced talent globally?
How Can We
6
Measuring People Risks The 30 Factors
Areas of People Risk People Risk Factors People Risk Factors
Demographics Working age population size Immigration/Emigration Workforce productivity Aging population Availability of future workforce
Government Support Future workforce planning Terrorism and political risk Violence crime Government relations Corruption
Education Literacy rate Capacity of education system Secondary school graduates Tertiary education enrollment Spending on education
Talent Development Quality of entry level talent Quality of technical training Quality of management training Languages spoken Brain drain
Employment Practices Bias and favoritism Labor relations Staff turnover Healthcare benefits Retirement benefits Equal opportunity Executive recruitment Occupational health safety Redundancy restrictions Rigidity of personnel cost
https//aonpeoplerisk.com/
7
People Risk Index 2012 Covers 76 Countries
Region Americas Americas Americas Americas Americas
Countries Argentina Brazil Canada Chile Colombia Mexico Peru United States Uruguay
Region Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific
Countries Australia Bangladesh Cambodia China Hong Kong India Indonesia Japan Malaysia Mongolia New Zealand Pakistan Philippines Singapore South Korea Taiwan Thailand Viet Nam
Region Europe, Middle East and Africa Europe, Middle East and Africa Europe, Middle East and Africa Europe, Middle East and Africa Europe, Middle East and Africa
Countries Algeria Austria Bahrain Belgium Botswana Bulgaria Czech Denmark Egypt Ethiopia Finland France Germany Ghana Greece Hungary Iran Iraq Ireland Israel Italy Jordan Kazakhstan Kenya Libya Morocco Netherlands Nigeria Norway Oman Poland Portugal Qatar Romania Russia Saudi Arabia Serbia South Africa Spain Sri Lanka Sweden Switzerland Syria Tunisia Turkey Ukraine United Arab Emirates United Kingdom Yemen
8
and 131 Cities
Americas Cities Atlanta Boston Buenos Aires Chicago Dallas Denver Detroit Houston Lima Los Angeles Mexico City Miami Minneapolis Montevideo Montreal New York Philadelphia Phoenix Rio de Janeiro San Diego San Francisco Santiago Sao Paulo Seattle Toronto Vancouver Washington DC
Asia Pacific Cities Ahmedabad Auckland Bangalore Bangkok Beijing Cebu Changchun Changsha Chengdu Chennai Chongqing Colombo Dalian Delhi Dhaka Guangzhou Hangzhou Hanoi Harbin Hefei Hong Kong Hyderabad Jaipur Jakarta Karachi Kolkata Kuala Lumpur Manila Melbourne Mumbai Nanjing Osaka Phnom Penh Pune Seoul Shanghai Shenyang Shenzhen Singapore Suzhou Sydney Taipei Tianjin Tokyo Ulaanbaatar Wuhan Wuxi Xiamen Xian
Europe, Middle East and Africa Cities Accra Addis Ababa Algiers Almaty Amman Amsterdam Athens Baghdad Bahrain Barcelona Belgrade Berlin Bogota Brussels Bucharest Budapest Cairo Copenhagen Damascus Doha Dubai Dublin Frankfurt Gaborone Helsinki Istanbul Johannesburg Kiev Krakow Lagos Lisbon London Madrid Manchester Milan Moscow Muscat Nairobi Oslo Paris Prague Rabat Riyadh Rome Sana'a Sofia St. Petersburg Stockholm Tehran Tel Aviv Tripoli Tunis Vienna Warsaw Zurich
9
Overall People Risk European Cities
  • 10 Lowest Risk Cities

10 Highest Risk Cities
Ranking1 City Rating2
116 Kiev 168
112 Belgrade 165
107 Athens 160
106 Sofia 158
104 St. Petersburg 155
102 Bucharest 154
90 Moscow 150
88 Istanbul 149
68 Rome 138
67 Budapest 134
Ranking1 City Rating2
4 London 73
9 Copenhagen 78
14 Zurich 82
16 Stockholm 83
19 Amsterdam 84
19 Oslo 84
32 Helsinki 91
33 Dublin 92
34 Manchester 93
37 Paris 95
1 Out of 131 cities worldwide in People Risk
Index 2012 2 Based on a rating of 30 factors
across 5 categories of risk
10
Symptoms of People Risks
11
Comparative Risk Associated with Recruitment
  • Shrinking workforce due to ageing population
    across Europe
  • Decrease supply of future talent as the cities
    are projected to have negative growth in working
    age population in the next 10 years
  • Insufficient education spending further increases
    risk as it reduced the capacity of education
    system to keep up with market demands for talent

12
Comparative Risk Associated with Employment
  • Lower employment risk for cities in Western
    Europe
  • Greater availability of good quality management
    training institutes (e.g. MBAs) compared to high
    risk cities
  • Lower workforce productivity impacts the ability
    of high risk cities to invest and develop its
    workforce
  • Further affected by the insufficient good
    quality technical and managerial training
    facilities which increases employment risk.

13
Comparative Risk Associated with Redeployment
  • Lower redeployment risk due to more positive
    labor relations environment
  • Transparent government, positive government
    relations, clarity in employment regulations
    reduces the risk
  • Onerous redundancy restrictions and rigidity in
    reducing personnel costs for organizations facing
    downsizing or restructuring situations increase
    the risk of redeployment

14
People Risk Case Study
  • Global (European HQd) Transportation Company
    with 20,000 employees.
  • Respond to global economic downturn with
    reductions in overall headcount, shifting work to
    lower cost locations and reducing number of mid
    and senior level managers.
  • Staff costs drop but operational efficiency
    nose-dives. Low-cost sourcing strategy results
    in higher overall costs.
  • Hire Aon Hewitt to redesign talent sourcing
    strategy to increase talent quality, sustain low
    cost structure and mitigate location risks.
  • Incorporate clients quality and performance
    measures with industry comparatives and the Aon
    Hewitt People Risk Index.

15
Location Analysis
Strategy Shift from its low-cost sourcing
strategy to a balanced sourcing
strategy Outcome Increase in talent quality by
more than 15 Talent cost did increase
slightly Overall savings to the companys
operations were estimated to be more than USD 5
million over the next five years
Quality Risk
16
Aon Hewitts Top Companies for Leaders Research
  • Most comprehensive, global research on leadership
    in the market, examining the link between
    leadership practices and financial results
  • Explores how organizations set strategies,
    assess, select, develop, and reward leaders
  • Examines the execution of leadership practices,
    as well as the strategy that guides it
  • Thousands of data points and 900 executive
    interviews in 2011
  • Research has been conducted in 2002, 2003, 2005,
    2007, 2009, and 2011 marks the 6th iteration
  • Study results published in the November edition
    of FORTUNE Magazine
  • Regional studies in North America, Europe,
    Asia-Pacific, and Latin America, using a
    consistent methodology and global rollup
  • 2011 Partners Fortune Magazine and The RBL Group

17
2011 Top Companies for Leaders Selection Process
  • 478 Global Participants
  • 43 countries
  • Participants completed detailed questionnaire
  • Aon Hewitt analyzed responses for strong
    leadership practices
  • 182 Global Finalists
  • In-depth interviews with HR leaders
  • Senior executives interviewed
  • Aon Hewitt scored data by assigning points to
    questions and responses
  • Companies screened for financial performance
    relative to industry
  • 18-month bad press scan

57 Top Companies Panel of judges gathered in each
region to select and rank Top Companies Global
(Top 25) North America (Top 25) Asia-Pacific
(Top 20) Europe (Top 7) Latin America (Top 5)
18
2011 Global Top Companies for Leaders
IBM Corporation General Mills, Inc. The Procter Gamble Company Aditya Birla Management Group Colgate-Palmolive Company Hindustan Unilever Limited ICICI Bank Limited McDonalds Corporation Whirlpool Corporation PepsiCo, Inc. General Electric Company Banco Bilbao Vizcaya Argentaria (BBVA) 13. Natura Cosméticos S.A. 14. Deere Company 15. 3M Company 16. Eli Lilly and Company 17. McKinsey Company 18. LOréal 19. Unilever plc 20. Siemens AG 21. Intel Corporation 22. China Vanke Co., Ltd. 23. Wipro Limited 24. Bharti Airtel Limited 25. Novartis AG

Europe Top Companies Banco Bilbao Vizcaya
Argentaria (BBVA) LOréal Unilever
plc ArcelorMittal Siemens AG Raiffeisen Bank
International AG Novartis AG
19
What Differentiates The Top Company for
LeadersThe Four Disciplines
Practical and Aligned Programs and Practices
Leaders Lead the Way
1
3


Senior leaders have a passionate and visible commitment to developing leaders Leadership strategy clearly reflects the overall business strategy
An intense focus on talent permeates everylevel of the organization The development of leaders is aninstitutionalized practice and mind-set
2
4
When Leadership Becomes a Way of Life
Unrelenting Focus on Talent
18
20
Top Companies Understand the Linkage Between
Investing in Leaders and Financial Results
Top Companies All Others
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
21
Top Companies Portfolio Approach to Accelerating
Leadership Development
Assessment Customized, scalable, relevant assessment techniques for different levels of leaders
Stretch Role/Mobility Expanding scope of work or location to broaden horizons
Feedback Structured ongoing well timed developmental feedback
Wisdom Transfer Transfer of experiences from an internal or external expert in the area
Learning Labs (Theory/Case Practice) Structured classroom theory, best practices and story telling on competency gaps
Business Simulation Simulation of real world business simulations for application of learnt models and best practices
Action Learning Teams Cross functional team tasked with a real business critical issue to work together on and present recommendations to the board/top team
Coaching Ongoing individual coaching by trained coaches to create a sustainable development journey for leaders
22
Top Companies Actively Work to Build Diversity
and Cultural Agility Into Their Development
Strategies
Actively taking steps to increase representation
of the following groups
Top Companies All Others
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
23
  • Global Mobility Overview
  • Key Trends in Global Mobility at Top Companies
    For Leaders 2011

24
Of the top 3 skills most critical for future
success, global agility occupies the center-stage
for developing leaders
Global Top Companies Global
All Others
Data reflects responses of organizations who are
developing these skills well (4) to very well (5)
Europe Top Cos
Europe All Others
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
25
Global Mobility Philosophy
Assess Global Mobility potential at recruitment
Structure Processes designed to Enable Mobility
Global Assignment as part of Career Plan
Conversations about Life Stage Emotional Needs
Glopats Career as a series of International
Moves
Mobility early-on to develop Global Perspectives
26
Global Mobility Process
Recruit talent considering mobility needs
Think global, act local
Cultural Training
Thinking beyond the next assignment
Identify talent pool for global mobility
Knowledge Transfer
On-the job support
Global exposure enabled career path
Capability Development
Supported Learning
International HR Mobility Set-up
Sync with life stage
Global assignments as steps of career development
Developing global mobility competencies
Time-bound expectations and next steps
Identify destination jobs
27
  • Identify
  • Identify talent pool to staff on global
    assignments

28
Top Companies Identify and Strategically Deploy
Global Talent Pool
Intent Action
Global mobility is the strongest predictor of success Global mindset is our 1 priority now. We will only win if we can attract and develop the very best leadership talent and they want to come here. We find the best talent chose us because of global experiences and career opportunities they will receive. Developing Local Leaders with Global Exposure Hire talent educated from another country, work in U.S., and send back to lead in home country. Remember these local leaders also need to think of themselves as global leaders too. Global Top Company (Software Services)
Using a Dashboard Developing HR Infrastructure to support global mobility Labor supply chain dashboard to monitor staffing requirement and hiring Staffing requirements can be fulfilled by talent across the world through the dashboard Asses longer term talent needs by analyzing which combination of talent sources and skills best matches the coming business needs Oil Refining Company based out of Texas
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
27
29
  • Orient
  • Develop global perspective by building on diverse
    experiences

30
Top Companies Nurture Future Leaders for Global
Assignments
Intent Action
Think global, act local Capability Programs incorporate interaction with Global Leaders Leading Beyond Boundaries helps to build the global perspective in learning without physically moving people. Recent program involved 30 people, 3 weeks, 1 week at Wharton about strategy, 1 week in Shanghai about emerging markets (explaining strategy for why we invest in this area), 1 week in NY where teams (broken into 4 groups) reported their findings and what they would do differently if they were running the company. Global Top Company (Food, Beverage Tobacco)
Align strategy with movement Big believer in Purposeful Experiences . Consider Several Moves beyond just immediate next move. Varying type of mobility assignments going beyond just an expat fulfilling a role Senior Leadership review Cascaded Moves monthly for blockers, high potentials and expatriates What might seem like a good immediate move might not be the right move for this person looking 2 and 3 moves out this is the really interesting conversation to have, using data and modeling scenarios to support analysis. Global Top Company (Software Services)
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
31
Top Companies Nurture Future Leaders for Global
Assignments
Intent Action
Blend local with corporate Develop global talent at emerging markets to mingle with other global talent. Emerging markets have three levels of development Local talent with affiliates, regional talent, and corporate talent. In Asia, we put 24 people through General Management Development program. The faculty coaches and observes participants while the program provides opportunities for storytelling and observing leadership at a high level. Global Top Company (Pharmaceuticals, Biotechnology Life Sciences)
Cultural exchange with strategic integration Custom-Built Exchange Programs for Senior Executives Global Learning Alliance is a program of exchange, challenge and development for Senior Executives formed between six international companies aiming to enhance their ability to meet the challenges of global business. Two modules one in Developed Economy and one in Rapidly Developing Economy integrates Business Strategy, Talent Management Strategy and Leadership Development priorities. Global Top Company (Software Services)
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
32
  • On-board
  • Deploy talent pool on global assignments
  • Align employee's individual development plans and
    company's strategic goals

33
Top Companies Support the Employees to Deliver
High Performance on Global Assignments
Intent Action
Global Exposure The top 100 leaders have, on average, experience in two and a half continentsnot countriesdifferent continents That gives them more international experience, more exposure to different languages, different cultures, different business environments. We believe that it is important for leaders to get experience in different countries, different functions, and different units to help learn to deal with complexity Global Top Company (Household Personal Products)
Emotional impact of mobility Increasing Self-Awareness in employees to successfully navigate the demands of Career Mobility CEO noted she is concerned about the younger talent as very immobile. She stated the workforce has become less mobile than they have ever been. They have addressed this issue in their succession planning by doing extensive 2-3 hour interviews that go beyond just skills and capabilities- they ask questions about aspirations, stage of life, family issues anything that would impact on career mobility and assignments. CEO sees mobility as the key to adaptability - training folks on the new realities of being a global business Global Top Company (Food, Beverage Tobacco)
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
34
Top Companies Support the Employees to Deliver
High Performance on Global Assignments
Intent Action
Targeted experiences and opportunities Varied Mix of short-term and long-term assignments for identified individuals (typically CEO/COO Unit head positions). Includes 3 12 month programs to build global working capabilities outside home country through projects that span across vertical, horizontal, demographic, geographic and stakeholder boundaries . Targeted individuals receive early exposure to international education, worldwide transactions, business travel. Movement of talent creates deliberate platforms for exchange of expectations, experiences, dialogue, feedback, peer support, coaching/ mentor support and focus groups. Global Top Company (Telecommunications)
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
35
  • Deploy
  • Leverage global talent pool for critical and
    strategic assignments
  • Place talent with extensive global exposure to
    long-term leadership roles

36
Top Companies Use Global Assignments to Prepare
Leaders for Destination Jobs
Intent Action
Move Talent with focus on their individual destination Planned Experiences for Destination Jobs The clearest indicator of success is movement and the primary driver of development is experience. Future leaders receive experiences across business and geographies. It is the managers responsibility to ensure that they are ready for their next career step. We look 5 or 10 years out and identify positions that are most likely to be open due to retirement, etc. These become destination jobs for high potential talent who receive planned experiences (i.e. running a global business, international assignment, etc.) to help them reach the destination in a given time period. High potentials in functions (i.e., finance) have accelerated development specifically tailored to their individual needs. Global Top Company (Household and Personal Products)
Source Aon Hewitts Global Top Companies for
Leaders Study, 2011
37
Key Questions for Your Organization
  • Where are you on the leadership journey?
  • Have you clearly articulated a talent or
    leadership strategy for the organization?
  • Does your current leadership strategy fully
    support and help drive your business strategy?
  • What are the key obstacles that impede your
    leadership practices today? How do you mitigate
    these?
  • Is your organization identifying the right talent
    for the right roles, and then providing them with
    the appropriate differentiation and development?
  • How is the organization accelerating the
    development of talent to strengthen your pipeline
    and retain top talent?
  • Are you measuring the impact of your leadership
    processes and investments to ensure successful
    outcomes and continuous improvement?

38
Thank You
  • Aon Risk Services September 2012
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