The Globalization Quiz!

During a recent workshop with a group of Human Resources Executives of a Fortune 100 Global Company, we asked the 15 participants the following questions:

 

                             Question                                             Respondents

1. How many of you were born outside the US?                0
2. How many of you have had 10 years as an Expat?      0
3. How many of you have had 5 years as an Expat?        0
4. How many of you have had 1to2 years as an Expat?  2                
5. How many of you are fluent in a second language?   3
6. How many of you spend at least 60 days Int’l travel 5
7. How many of you like Italian food?                                     13

 

Although the quiz can be construed as tongue in cheek humiliation, it is also a proof point.  As a general rule the HR leadership of US centric “global companies” for the most part is rather parochial we would submit even if they travel extensively outside the US.

 

In our research for the book Talent Readiness-The Future Is Now! we conducted a survey of 150 CEO’s on their aspirational expectations of the Human Capital function. 

Among the top 10 responses was “assist leadership in becoming a truly global enterprise”.  31 of the CEO’s were headquartered outside the US.

 

We are not sure that there is sufficient time for every senior HRM to master the advanced levels of a Rosetta Stone course, or persuade the 2 outliers of the benefits of mozzarella….yet there is a need for the domain to respond to this deficiency in orientation, outlook, in order to satisfy CEO expectations. 

 

There are 5 practices that are emerging that may be useful.

 

1)   90 Day Wonders-It is somewhat of a military model whereby Officer Candidate School is this duration.  Our recommendation is that the most senior HR managers be required to spend at least 90 days on business travel.

2)   Knowledge Transfer-Use of Executive Coaches whom have lived and worked in the regions who can advise executives on mores and approaches for assimilation

3)   Rotation-Reverse the model of sending Americans overseas in favor of having high potential targets coming to the US for semi-permanent placement as part of a longer term HR Succession Plan.  

 

 

 

 

4)   Non Exclusionary Development-Look for opportunities for HRM’s from outside the US to participate in company sponsored events/training in the US even accompanying their cognizant manager vs. relying on them to have knowledge be communicated

5)   Change the Hiring Profile for US HRM’s-Embed into the desired qualifications.  Basically change the game!

 

For a Global HR entity to set as a goal “in five years 50% of our staff to come from outside the US or have an international orientation through their family or education” is ambitious.  Yet compare that to the revenue stream that is expected to be derived from non US operations.  This compare and contrast exercise has its merits.

 

Our research would indicate that the CEO’s do not expect their US centric HR mangers, or we hasten to point out would those CEO’s who were from outside the US, “become global by exporting practices and processes”.

 

One Canadian CEO stated it well “To be Global HR need to Be Global”.

The Partnership Failure

The Partnership Failure

In the recent past we have worked with a number of global clients on their HR Operating Model.  The CSuite research we have been undertaking clearly points to the need for not only a more global orientation, simplified processes and practices: but also a measurement of internal customer satisfaction. 

The CEO’s have it right….as we emerge from the Global Recession; a strong Employer Brand is the threshold for workforce replenishment.  The progress thereto must be tracked.

Unfortunately one, if not the, most critical role in the HR model to satisfy this interest is that of the Business Partner.  Yet time and time again we are saddened in the prosecution or our client work to discern that the loyalty of this group fulfills the metaphor of “Elvis has left the building”.

When we probe deeper, it is not an issue of competency!  Moreover it is a lack of affiliation with, or loyalty to, their HR colleagues!

The question is not why…that is unfortunately clear during these difficult times when the function for the most part is being criticized while focused on unpleasant tasks such as restructuring, SSO creation. benefits modification, curtailment and elimination of services.  In these times  who wants to be “one of them”!  Yet whether it be dotted or straight line reporting, distant or proximate location….get used to it…..you are one of them!

 

Our client work, beyond the antipathy  this phenomenon prompts, mostly concludes, that the mantra from an HRBP of “if only HR” diminishes not only the Business Partner incumbent, it complicates the Functional Strategic Intent.

So what do we mean by diminishment of the Business Partner? We refer to this outcome as one of “Organizational Hostage”.  The leaders/clients to who you have been assigned to serve, ultimately feel distrustful of someone who is not an advocate of their own function and colleagues.  We would submit even more emphatically that this positioning leads to manipulation of the HRBP with the reputation of the HR function being disenfranchised.

We do not see it advantageous to the HR function if the Business Partner promotes the most likely criminal defense of a guilty party ODDI (the other dude did it)!

The reinvention of the HR Operating model this millennium is of paramount importance in a global economy.  It will require HR incumbents to educate, confront, resolve, and collaborate as truly in this function, the power of the whole is the sum of all of its parts.

To be clear…and acknowledged provocative….our recommendation when we unearth Organizational Hostages is to a) transfer them immediately, b) keep a close look on their objectivity and advocacy, c) at the first hint of the replication of bad behaviors, displace.

The end of the recession and all of the growth opportunities that portends will require the energies of serious people, not those who find it convenient to forget they are the “other dude”.

Human Capital-What is on the mind of Global CEO’s?

As part of the resarch for Talent Readiness-The Future is Now! a study of 15o CEO’s was conducted focused on the question “what do you require in the Human Capital domain to prosecute your near term business case:.

Among the Top 10 most frequently mentioned several stand out as insightful:

1. Simplification-CEO’s want the processes and supporting templates to be less complex and more user friendly.  The days of “11 page performance appraisals” are numbered.
2. Total Rewards Reinvention-The use of stock as an exapmple needs to be revisited.  Two compressors, the actual value and therefore usefulness of stock during the downturn, and more strategicly, the use of stock at all for Gen Y who do not plan their careers with protracted vesting windows.
3. Leveraging Social Media-CEO’s were concerned, before the turbulence of Wiki Leaks, of the use and potential misuse of Social Networking.  They want some entity, not IT!, to coordinate its strategic use, and also in a non trivial way, avoid embarassment.
4. Leadership Effectiveness-They want to see innovative approaches for development limited to 2 groups, high potentials, and essential players in critical roles.

What also came through from the study was the impatience and militancy of the CEO’s regarding the level of service they perceive they have been receiving from their “supposed HR professionals”.  Some rather provocoative comments and actions were surfaced during our resarch in this regard.

Tom Casey-January 28th 2011

Talent Readiness – The Future is Now

Tom Casey, Tm Donahue and Eric Seubert want ALL CEOs to appreciate the imminent “Perfect Storm” of human capital change.  In their NEW book, Talent Readiness: The Future is Now,  they offer advice for CEOs needing to navigate the unchartered waters of globalization, declining engagement, and shifting demographics.

Available, now,  from Amazon, Barnes & Noble and iBooks.

The Contradiction Between Aging and Clueless

As the recession dissipates and the need for experienced talent resumes, there are two demographic issues that will need to be addressed.

The Need to Embrace the Contribution of the Older Worker

A recent Wall Street Journal article spoke of the challenges the legal profession has in maintaining as Partners those over a certain age.  The article spoke of a Partner who still practices at 79, who was challenging in court the position of his firm that he was “too old to fulfill the obligations of being a Partner.”

The article went on to speak about his actual productivity (among the highest billing), scholarship (a regular contributor to legal journals and opinion pieces), and reputation as a mentor (younger Partners revere him as a mentor).

So beyond age… why this dilemma?  His legacy firm stipulates that it was being prudent and needs to have a “mandatory retirement age” to make way for “younger Partners.”

So in the legal profession, as is the case in other sectors such as accounting, contribution is not a consideration……the main one is age!    Hmmm…

Vitality is not a function of years…..it is preparation, outlook, health, and intellectual curiosity…..

Speaking of which……

The Need to Understand the Mental Model of the Younger Worker

A recent survey at Beloit College of incoming freshman had some interesting results.   When asked for example, “Who was Michelangelo?” The response was “a computer virus.”  I thought this was obtuse until it was explained to me that in fact there was a computer virus called Michelangelo.

As a Boomer I thought it would be interesting to create my own quiz and of course answered my own questions as if I was a Freshman (I Wish!)

1. What was The Cold War? – One fought in the Arctic
2. What was The Long March? – The first Marathon
3. Who was Beethoven? – A Dog who starred in a couple of movies
4. What was the Kitchen Debate? – An argument my parents had in the Kitchen
5. What was the Palmer Method? – The swing of an old golfer
6. What is a Fountain Pen? – A fountain in the shape of a Pen
7. What is a Pop Tart? - OK this one would be timeless

So which is more compelling, the answers of the incoming Freshman or the fact as a Boomer I did not know there were “2 Michelangelos”?

And more importantly is this an issue of age, intellect, or exposure?

Reconciliation of the Apparent Contradiction

As I was draftring  this blog post, I consulted others by Tammy Erickson (www.tammyerickson.com) and my nephew Sean, a former Army Captain currently in Grad School in Germany (http://seanmaybeheard.wordpress.com).

In reviewing their writings, the WSJ article, the Beloit study, and most importantly my pro Sistine Chapel response, I was thinking… maybe this “you lose it with age thing has some merit”!

NAAAHHHH!

There are too many aspirations all who work have in common:

1. The desire to be respected
2. The desire to be recognized
3. The desire to be mentored
4. The desire to be challenged
5. The desire to be provided opportunity regardless of age!

The disconnects we note and laugh about to the point of cohort mutual mocking, are not a function of age….there are more accurate explanations. 

Having given this apparent contradiction some recent thought I have concluded it is an issue of understanding and tolerance. 

Moreover as we will need the energies of all who wish to work to be effective whether we speak of societies or enterprises, we had best table the ridicule and focus on more understanding and tolerance.

CEO Lessons Learned 3 – Dude: Where is my Money?

Tammy Erickson (tammyerickson.com) has written a number of books regarding the generational differentiators and in so doing has sensitized many to the difference in aspirations among the 4 cohorts in the Global workforce(Traditionalists, Baby Boomers, Generation X and Generation Y).

Generation Y or the Millennial group is and will be a managerial challenge for quite some time.  To those of us in the Boomer cohort effectively acting as mentors and managers of this group, it is exhausting. They ask the Question “Why?” incessantly and take unction when they are not consulted by the C-suite in respect to enterprise strategy.

At the risk of being pedestrian…. let’s follow the money….

There are emerging 3 truisms with respect to Total Rewards:

1. Don’t hire anyone at my peer level, give them more money, and expect I won’t find out!
2. Pay me at a level that is commensurate with my performance and self assessment of same…
3. Forget the stock that will vest in 5 years……I won’t be here…

Einstein’s definition of insanity – “continuing to do the same things while anticipating a different result” – applies to many of the Total Rewards approaches in force globally.

 The lessons learned by many of our clients is that unless the Total Rewards strategy is sensitive to the aspirations of this cohort, and then Compensation will be de-motivational, and controversial.

CEO Lessons Learned 2 – Critical Constituencies

In our client work we often get a chance to discuss with CEOs matters that evolve into significant lessons learned for our clients and ourselves.

The Role of Critical Constituencies

As we exit the global recession it is essential that we remind ourselves of the need to clearly identify what are the most critical roles in an enterprise, and whom are the most essential incumbents in these areas.

The following derived from a recent client experience.

One of our clients is a large global insurance company.  When the CEO was asked,“what are your critical roles”, his response was “my direct reports.” When we probed a little more aggressively we determined that the most important role, or what we refer to as “Critical Constituency,”  was in fact the Actuaries.

When we met with the Actuaries we found that they felt very disenfranchised and in fact were “counting down the days”! What was even more compelling was that the average age of this group was 59! 

As we would expect Actuaries understand retirement!

This group was treated as if they starred in The Revenge of the Nerds.  They even had  their own tables in the lunchroom.

When we looked at the external marketplace we discerned that despite the recession the profession is not exactly a magnet for new recruits.  After all who wants to take exams for the rest of their professional life!

When we informed our client of their risks…. he did an outstanding job of recovering lost ground with the adage…. “Sheer panic brings clarity of thought.”

Jay, Conan and the Boomer – GenX Divide

The recent Jay Leno – Conan O’Brien late-night TV debacle is a good illustration of the Boomer – Generation X divide – and a cautionary tale for organizations seeking to harness talent across the generations.

Anyone who has not been living under a rock recently is familiar with the NBC network TV saga.

Conan O’Brien is the late-night comic with an edgy, ironic sense of humor characteristic of Generation X. Born in the mid-1960s, Xers were steeped in punk rock and new wave music during their teen years.  Many saw their working parents caught in waves of layoffs in corporate America during the 1980s and ‘90s, one factor that shaped their detached, wary stance toward large organizations.

But O’Brien toed the line with network colossus NBC. After 11 years hosting Late Night with Conan O’Brien, he renewed his contract in 2004. O’Brien agreed to stay with NBC and take over The Tonight Show when host Jay Leno stepped down in 2009.

Leno is one of the most famous members of the Baby Boomer generation, who came of age during the rebellious 1960s, paid their dues in the working world and grabbed for the brass rings in their fields.

Leno grabbed the ultimate late-night TV brass ring when NBC selected him to host The Tonight Show upon Johnny Carson’s retirement in 1992. Leno reportedly won out over rival David Letterman because NBC executives thought Leno was more of a “company man” who would relate well with the network affiliate TV stations.

When Leno yielded the Tonight Show host chair last year, he began hosting The Jay Leno Show, a prime-time show that aired weeknights on NBC.

Alas, both O’Brien’s and Leno’s shows produced weak ratings. NBC’s proposed solution? Offer Leno a half-hour show at 11:30 PM and push O’Brien’s Tonight Show back to midnight. O’Brien was given two options: Accept the new timeslot or leave.

He left – with a payout in the tens of millions of dollars – and Leno had his Tonight Show seat back.

How and why this all came to be has been a matter of heated debate.

Seen through the generational lens, was Leno a Boomer who couldn’t relinquish the spotlight? Could he not pass the late-night TV torch to his younger counterpart, as Carson had done with Leno nearly 20 years earlier? Or was Leno a valued network player seeking to rescue NBC’s late-night ratings?

Was O’Brien a loyal corporate soldier who got burned – or a savvy “free agent” Gen Xer who turned lemons into a seven-figure lemonade?

In the latest chapter of the story, O’Brien appears to be staying true to his Gen X roots. O’Brien is said to have chosen cable channel TBS for his new late-night talk show because they offered him the most flexibility, autonomy and control. He will own the TV show and TBS will air it.

What are the late-night lessons learned here? Does your organization provide your Boomer employees a graceful off-ramp to new roles where they can contribute and remain relevant? Do you help them pass the torch to the next generation and feel good about it?

Are you rewarding your Gen Xers for their loyalty? Do you meet them in the middle by providing autonomy, flexibility and opportunity to demonstrate ownership of the business in an entrepreneurial vein?

In the generational dialogue, your organization has a choice: Write your own witty punch lines – or be the butt of jokes.

Coaching for Peru

(The following is a recent interview of Tom Casey by the Peru American Chamber of Commerce on the topic of Coaching for Peru.)

 Tom Casey is an expert in the development of organizational transformation strategies for rapidly growing multinational or transitioning corporations. He has consulted in over 20 countries and virtually every economic sector. Moreover, he is the founder and Managing Principal of Discussion Partner Collaborative, an Executive Advisory firm with over 200 consultants in 19 locations.

 While on one of his many visits to Peru, he shared with us his point of view on how much our country has changed during the last few years, as well as the positive impact its economic boom has had on its professional management level. From his experience in Latin America, he applauds the good performance standards from Peruvian high executives, as he has personally worked with many of them, from sectors as diverse as banking, services, manufacturing, and construction. Although he tries not to compare directly, probably because of the evident different contexts, he cannot help but indicate that  Peru has much going  for it in comparison to other countries in South America like Venezuela where he has lived and worked. Truth be told, AMCHAM has to agree that for any American interested in international affairs (this probably goes for anybody from outside this region for that matter), Latin America is a perfect example of opportunities, tensions and extremes.  Tom indicated for him and his U.S. colleagues that after working in Latin America everywhere else seems boring!

Nevertheless, it comes clear to Tom what advantages Peru has in order to be regarded as a successful economic and business model for emerging countries. First of all, he points out that Peru enjoys the right strategy and vision to develop and prosper, thanks to highly skilled managers continuing to reach decision-making positions. A lot of Peruvians have correctly invested in themselves during the past couple of decades; evidence of this is the appropriate leadership style that Peru has adopted to improve both its international image, as much as the “system’s” image to common folk in most parts of the country.  Tom ventured that since 1994 when he first began consulting in Peru there has been tremendous change in how leaders position themselves to compete globally

Of course, one cannot talk about Peru without mentioning its tremendous potential with regards to its raw materials and acute financial services, as well as its wonderful tourist attractions, ancient history and renowned cuisine. Peru’s sheer size is a plus, both geographically and demographically: unlike many other emerging economies, Peru has the right population density, growth and age segmentation, in other words, we have the right amount of eligible young work force. What is more, and thanks to the economic sprint, the earnings potential vis-à-vis our country size has greatly improved (not to mention our per capita consumption figures have started to attract important investments, as more and more companies open offices as they see Peru is good business).

Notwithstanding, it is not all cheers and glory for us, as we do face many challenges with regards to our top executive human capital. Despite all the improvements, Tom does sense Peruvians have to work on a number of managerial skills. For instance, he has seen good project management skills, but they could certainly be better; and a person’s performance may not always be duly recognized, nor bad performance sanctioned. Women’s talent is not fully exploited, as seen on the percentage of those with university and advanced  degrees (one of the lowest in the region). Last but not least (and most countries in the region can relate to this), the never-ending accountability issue (the lack of a Spanish word for it does not help either)…which may also explain our unpunctuality.

Tom stated that the biggest change he has observed is his enthusiasm whereby managers are now aggressively challenging their strategies, business models, subordinates, and themselves to ensure that our tremendous opportunities are exploited. 

When asked for suggestions for Peruvian managers, Tom had a number of them: “Think globally as Peru is clearly a player in the regional and world economy; continue to assertively develop talent inclusive of expanding opportunities for female executives; reinforce the need for managers to hold themselves accountable for achieving expectations; and finally to reinforce motivation, by differentiating the reward strategies allocating the monies to those who have performed the best.”

You Are Turning 60… So What?

I turned 60 a few days ago… beyond the overtures of family and friends and the celebratory activities of my loved one, I tried to pretend it was just another day.  Of course I did this at 40 and 50 as well… just as unsuccessfully!

But 60 is different.   Despite the philosophy… that it is the new 40… my bones and mirror image would suggest otherwise, but that is only the distractions! The question is what do I and my co-ageists do with our next decade… I have to admit that I have many new “spam friends” who want me to stay active with vitamins and REALLY active with Viagra.  There are also those who want to help me plan for retirement which based on these overtures is only a couple of hours away… but really now what!

To make it to 6o for me is a gift… based on the early passings of  family members and my personal experiences it is a true blessing.

I plan on living to at least 90 so as I embark on the next “third” it is nice to do so surrounded by people who care for me.  Most importantly it is important to do so with the knowledge that this will be my best time!  The time where I will make the most contribution to my clients, colleagues, discipline, friends, family, and loved ones.

Tammy Erickson a prolific writer on demographics has asserted that this is a period where those between 55 to 65 will be the fastest-growing segment of the US workforce.  Her hypothesis has been and remains that the contributions and experimentation of the Boomer generation are  going to be a glorious work in progress.

 As I write this opus the Who, whose founding members are even older than I, are performing at the Super Bowl.  Age is not about time, it is attitude and contribution.

 For those of you who share the philosophy that the best time is always what comes next, the 60′s will be a terrific experience!  For those of you who don’t embrace this philosophy…better pay attention…you will get where we are some day!