the “new” new normal: global mobility as a strategic advisor

The “New” New Normal:Global Mobility as a Strategic Advisor

PRESENTER:Andrew P. WalkerPrincipal, Mercer

THE NEW NORMAL 1.0

The 2008 Turning Point

>Global financial downturn pushed mobility to adapt

Operational excellence as the core competence

Improvedefficiencies

Reducedcosts

Alignedpolicies

New Normal 1.0

>More proactive supplier managemento Leveraged global purchasing powero Increased service levels

>Added policy optionso Alternatives to the traditional / “full” packageo Rationalized use of assignments

>Mobility functional alignment with businesso Rash of repatriationso Clearer understanding of “why”

THE NEW NORMAL 2.0

The Age of Enlightenment

> “Talent Mobility”

Right policies for right cost

Alignment with Talent

Right people for right reasons

An Integrated Strategy

TALENT

TOTALREWARDS

The right PEOPLE…

in the right PLACES and ROLES…

PLANNINGat the right COST…

For the right length of TIME and RESULT…

INVESTMENT

Segmented Talent Pools

Strategic businessleadership

Emerging, high-potential talent

Seasoned technical experts

Career-buildingvolunteers

Business valueLow High

High

Dev

elop

men

t Val

ue

Aligned Policies

Full terms plus“Inducement”

Reduced terms “Mutual benefit”

Full terms“Comprehensive”

Minimum“Compliance”

Business valueLow High

High

Dev

elop

men

t Val

ue

Lots of Momentum… But!

23%It’s happening

46%Thinkingabout it

23%Know they

should

8%Don’t care

Source: Mercer Consumer Products Industry Talent Mobility Survey 2011

Where to Start?

Determine Global Mobility

Purpose and Strategy

Business Context

Assess Current Program

Develop Tiered Approach to

Compensation & Benefits

Document Decision

Points for HR & Line

Management

Implement & Communicate

Mobility Context

Assignment Policy

Internal Roadmap

Change Management

Whymobilityhappens

How well isit working?

Policies to best

supportdesired

outcomes

Policydecision

&governanceframework

Rolling itout&

bedding itdown

Metrics Organizational development

Mobility as aportfolio

investment

Competitivepractice

Making the Business Case For Change

Where This Takes The Mobility Leader

>Mobility managers are focused on strategy improvements, consistent standards, cost savings and, increasingly, talent management

>Evolving into strategic advisorso Aligning principles and policies

o Collaborating with Reward to achieve a consistent design

o Helping the business to understand why they use mobility and how they can do so more effectively

Where This Takes The Mobility Leader

>Gaining and maintaining consistency in mobility practiceso Identifying talent and selecting assignees

o Establishing the assignment business case

>Managing the end-to-end experience (versus end-to-end process)

>Saving costs; increasing value

>Linking with Talent: becoming a talent agent

Meanwhile…

>Business leaders have faced unparalleled challenges over the past two years

>Paradox: Cut costs and expand

>New emphasis on reaching across markets to create new opportunities and execute business strategies

>Leadership talent is required to have a strong global mindset and international experience

Leadership Development

>Clear alignment with leadership priorities and opportunities presented by well-run mobility program

>Number 1 focus in HR’s leadership field:

Global Leaders

Source: DDI, Bersin, 2010

2,000 Managers

Globalization of Business and Talent – Warning Signs

Source: Muczyk & Holt, 2008

Don’t have necessary skills

Fortune 500

Lack global

leaders

Workforce Crisis On The Horizon

25,000,000

45,000,000

12.5%

25,000,000

45,000,000

12.5%

40%

THE NEW NORMAL 3.0

>Further evolution required

>Global Mobility must continue to respond

“More than ever, mobility functions are under pressure to create efficiencies, add value, and

operate strategically while continuing to improve its operation effectiveness”

“Confronting and Mastering Global Mobility” by Josy Koumans and Mike Piker, 2011

The “New” New Normal

CriticalTalent and

Roles

1

StrategicWorkforcePlanning

2Targeted

EmployeeValue

Propositions

3OutcomeAnalysis

andModeling

4

Connectand

Engage!

5

Five Critical Principles

Future workforceneeds basedon multi-year

strategic businessscenarios

Current andProjected internal

and externalsupply of

critical talent

SupplyDemand

Valueriskscoststiming

Strategic Workforce Planning

Organizational Development

Employee Development

Governance

Cost Management

Providers

Pay & Payroll

Policies

Process

Strategic Alignment

Workforce Leadership

Operational Excellence

Synergy

Driving Success

ClarityCompliance

Consistency

Driving Business Outcomes

Strategy

Effective Talent

Management Practices

Putting the Pieces Together

GlobalMobility3.0

Operationalexcellence

Talent Mobility

Workforcestrategy

Driving successfulbusinessoutcomes

The New New Normal

THANK YOU!