Succession Planning for Global Companies

Ana DutraChief Executive Officer,

Korn/Ferry Leadership and Talent Consulting

Similarities Around the World

Differences Around the World

Challenges of Adopting Global HR Systems

People Laws Labor Cultures Technology

Global Talent Management in a “Flat” World

Global competition for talent

Global workforce diversity

Global business strategy aligned with talent

management

Redefining Global

Multi-domestic organizations

manage overseas affiliates as

independent business

Global organizationsuse resources

developed in one part of the firm to create

competitive advantages in another

Source: Taylor, Beechler & Napier, 1996

Simply doing business in different locations does not make an organization global

vs.

Evolution of Global Staffing

Ethnocentric

Key positions in subsidiary

operations are filled by parent-

country nationals

Polycentric

Foreign subsidiaries are primarily staffed by host-country

nationals or managers from the subsidiary location

Geocentric

Where the “skill of the person is more important than the

passport.”

Source: Collings and Scullion, 2006

HR Systems of Truly Global Companies

Source: Ryan, Wiechmann, & Hemingway, 2003

ü A strong corporate culture that overrides

geographical differences

ü Competencies that are measured globally

ü HR systems that are implemented consistently

across the regions

ü Seeking and hiring the best talent “irrespective of

passport”

Finding Top Talent Globally

Identify Hi-Pos Globally Develop Hi-Pos Globally

Things to Consider. . .

How does your organization currently define a “high-

potential?”

How well is the definition of “high-potential”

understood throughout the company?

How consistently and effectively is that definition

applied?

Is potential viewed differently by region?

Research Findings

Performance is overused as a criterion for potential

Current performance and future potential are only

somewhat related

Learning agility is a better predictor of potential than

intelligence

Most managers overrate performance and potential

High Performers and High-Potentials

High-Potentials

29%

Not High-Potentials

71%

High-Potential Management Survey,Corporate Leadership Council, 2005

% of high performers

that are high-

potentials

% of high performers

that are NOT high-potentials

High performers are NOT always high-potentials

Predictive Indicators of Future Potential

“It is not the strongest of the species that survives nor the

most intelligent. . .

. . . it is the one most responsive to change.”

Charles Darwin

1809-1882

Definition of Potential

(“Raw Materials” Experiences)+x Learning Agility

= Potential

Definition of High-Potential

Potential

x Sustained High Performance

= High-Potential

“Raw Materials” Experiences+x Learning Agility

Definition of Learning Agility

The ability to learn valuable lessons

from experience and apply those

learnings to new and first-time

situations

Source: Lominger International: A Korn/Ferry Company

Characteristics of Learning Agile People

ü Seek and have more experiences

ü Enjoy new challenges

ü Get more out of their experiences

ü Apply new skills

Measuring Learning Agility

Four Factors of Learning Agility

MentalCriticalthinkers People

Change Results

Knowthemselves

Like toexperiment

Deliverresults

High Professional

Key Performer

Low Performer

InconsistentPerformer

Adaptable Key Performer

Adaptable High

Professional

Strategic Star

Rising Star

Diamond in the Rough

POTENTIAL

PERFORMANCE

The “Strategic Few”

Less learning agility More learning agility

Less than effective

Highly effective

Developing High-Potentials

Implications for Korean

Companies

1. Denial

2. Defense

3. Minimization

6. Integration

4. Acceptance

5. Adaptation

ETHNOCENTRIC

ETHNO-RELATIVE

Source: Milton J. Bennett, Developmental Model of Intercultural Sensitivity

Evaluating Your Organization's “Intercultural Competence”

GLOBAL

INTERNATIONAL

“Going Global”

What makes a leader successful in an international business?

How are my leaders different from successful leaders in global businesses?

How do I identify those leaders who are more likely to succeed in international postings?

What do I need to do to develop or coach my leaders to compete outside Korea?

How do I assess expatriates coming into Korea on their fit with my organization?

Questions Korean Companies Need to Start Asking

The number one way to become a truly global company is to implement a formal talent management process that:

Aligns leadership requirements with the organization’s strategy

Evaluates executives’ performance and potential

Identifies and then develops high-potentials around their assessed strengths and weaknesses

28

Korn/Ferry’s web-based assessment tool measures the degree of fit between an executive’s competencies and an organisation’s culture and specific leadership requirements

Database of > 1.3M professionals who have been assessed

Assessing Your Current Team

Leadership assessment enhances the ability to find the

optimal degree of fit

Self-Discovery through Assessment

Increasing Your Local Team’s Chance of Success Worldwide

Increased understanding of learning agility improves ability to recognize and measure it.

Companies should establish a uniform understanding of learning agility using validated assessment tools to reduce the potential for misidentification of high-potentials.

Finding

Implication

What does this mean for you?

What does this mean for you?

Just like individuals, organizations can learn from and improve their assessment abilities.

Use of learning agility assessment results in more effective identification of high-potentials.

Finding

Implication

What does this mean for you?

If you want to find your high-potentials, you have to identify them – they won’t necessarily find you!

Programmatic use of learning agility assessment results in more effective identification of high-potentials.

Finding

Implication