People Management in Digital

Disruptive World Manoon Sunkunakorn

Agenda • People Management and Development

• People Strategy to Align with Organization Direction

• Global Perspective in Changing and Disruptive World

• Case Study

• Q & Share

STRATEGIC HUMAN RESOURCES

DEVELOPMENT & MANAGEMENT

SELECTION PERFORMANCE APPRAISAL

DEVELOPMENT

REWARD

CORE

- FULLY UTILIZE

- FULLY DEVELOP

ROLE

- COMMUNICATION

- MOTIVATION

- LEADERSHIP

- POWER/INFLUENCE

Agenda • People Management and Development

• People Strategy to Align with Organization Direction

• Global Perspective in Changing and Disruptive World

• Case Study

• Q & Share

Human Capital Process and Business Alignment Defining the Solution

The key is to identify the right combination of human management processes,

programs and workforce solutions needed to improve an organization’s human

resource management capabilities. The management program should be

driven by business and workforces needs.

Productivity Quality Innovation Customers

Key Performance Drivers

Business Results

Human Capital Processes

Competency

Management

Career

Development

Performance

Appraisal Succession Planning Recruiting

Workforce

Planning

Workplace

Design

Rewards and

Recognition

Employee

Relations

Human

Capital

Strategy

Learning

Management

Knowledge

Management

Human Capital

Infrastructure

Human Capital Capabilities

Tier 1

Tier 2

Tier 3

Tier 4

Workforce

Performance

Ability to

Change

Employee

Engagement

Workforce

Adaptability

Talent

Management

Leadership

Capability

Human

Capital

Efficiency

Change

Management

Revenue

Growth

ROI or ROE

Total Return

to

Shareholders

Future Value

Managing People Beyond 2019 ….. Disruptive world, no shortage of talent, but focusing on develop

your people….

• Leading, Developing and Engaging of Talent

• Change and Transformation Management

• Innovative Workplace

• Employee Engagement

• Diversity Management

Recruitment & Selection

Management & Utilization Retention Learning &

Development Performance Management

Young Talent

Promotion from within

• Career Camp • Talent Scholarship • Excellence Internship Program Competency

Potential Evaluation

Learning & Development

Structure

Scholarship

Performance-based Pay

Performance Evaluation

Career Development

• Merit Increase • Promotion Adjustment • Salary Adjustment • Variable Pay

Market Leader in Compensation & Benefit

Challenging Job

Give Before Demand

High

High Low

Potential

Performance

1 2

3 4

Group 1 High Capability (Work) “C” and

High Acceptability (People) “A”

“C A” First For Promotable

Talent Development Process

Rotation

Management Development Committee

(MDC)

Mentoring & Backup

Source: Willis Towers Watson 2018

Transformation of Leadership

การเปล่ียนแปลง Change Management

ประสิทธิผล (Effectiveness)

= ทรัพยากร (Quantity) x การยอมรับ (Acceptability)

Benchmarking with our changes, how big of gap - 7S:

• Strategy

• Organization Structure

• Systems

• Share Value (Culture)

• Staff

• Skill (Capability Needed)

• Style of Management & Leadership

GAP ASSESSMENT

WHAT HAVE TO BE CHANGED: PEOPLE

•Knowledge

•Skill

•Attitude

BUILDING BLOCKS

L.A. Benningson

A Clear Shared Vision

Capacity for Change

Pressure for Change

Actionable First Steps

= CHANGE + + +

28/10/62 18 TMA-MDP

Managing People Beyond 2019 ….. Disruptive world, no shortage of talent, but focusing on develop

your people….

• Leading, Developing and Engaging of Talent

• Change and Transformation Management

• Innovative Workplace

• Employee Engagement

• Diversity Management

Contribution VS Satisfaction

Company’s success Personal’s role

Employee Engagement

21

Clarity of Company Direction

Leadership Role & Responsibility

Empowerment

Career Development

Quality of Work Life

Reward & Recognition

…Employee’s contributions, ethical concern, work with happiness are secretly influenced by the Power of Employee Engagement…

Drivers of Engagement:

•Leader’s Role & Responsibility

•Employee Perception of Job

Important

•Employee Clarity of Job Expectation

•Career Advancement /Improvement

Opportunities

•Effective Internal Employee

Communication

•Reward to Engage

DIVERSITY TODAY CONCLUSION

Agenda • People Management and Development

• People Strategy to Align with Organization Direction

• Global Perspective in Changing and Disruptive World

• Case Study

• Q & Share

Performance Management Model

VISION/MISSION

STRATEGIES

KEY PERFORMANCE INDEX

CORPORATE CULTURE

BUSINESS STRUCTURE

PERFORMANCE MANAGEMENT

JOB RESPONSIBILITIES

FIXED/VARIABLE REWARDS

CAREER PLANNING

SCG FACING SOME KEY

CHALLENGES

• Market share growth in Thailand are quite limited as

most businesses are already dominant players in their

respective markets → What is the growth platform?

• Competition shifts from domestic to regional or global

platform → Do our way of doing business still be valid?

• Present success came from manufacturing skills in

basic products → Is the current margin sustainable?

• Past reliance on technology infusion from JV partners

and equipment suppliers → Changes in culture needed?

Given all the challenges, what should SCG

do? Where/What to invest? We need a clear vision.

Go Regional

High-Value Products & Services

SCG : Innovative Organization

“We make a difference.”

คนท างานดว้ย

-หนึง่สมอง Head

-สองมือ Hands

-หวัใจ Heart

-สขุภาพกายและใจ Health

การสรา้งการยอมรบั (Acceptability)

สือ่สารCommunication

มีส่วนร่วม Participative

เชือ่ใจกนั Trust

ไดใ้จกนั Buy-in

HOW TO PRODUCE HIGH-VALUE

PRODUCTS & SERVICES?

Innovative Workplace

6

New Entry

Business Strategy HR Strategy

Aligning People to Business Strategy

Current Employees

HR System

Future Employee

SCG VISION

OUR PEOPLE… DRAWING THE FUTURE

• Share Values

• Appreciate the whole individual

• Encourage the openness and playfulness

• Celebrate successes

• Clearly communicate history

• Maintain intense customer focus

• Focus on trends

• Cross functional teams

The nine common characteristics of

innovative organizations

GROWTH FROM RESTRUCTURING

STARTED TO DECELERATED IN 2004

1990 1997 2004

JVs

Restructuring

1996

Why?

GO REGIONAL: FOCUS ON ASEAN

Why ASEAN?

OUR OVERSEAS EXPANSION

- Cement

- Petrochemical

- Building Products

- Paper

- Petrochemical

- Paper

- Petrochemical

- Building

Products

- Paper

- Building

Products

- Cement

- Building

Products

Cambodia

Indonesia Malaysia

Middle East Vietnam

Philippines

13

Proactive Staffing by recruiting

international staff and

reserving manpower for

expansion preparation

Aligning People to Business Strategy

Intensive Development Plan

by exposure opportunity,

overseas assignment,

training & development

Overseas Expansion

Set up Mobility Office

to take responsible for

the international staff

Secure HR System

To support business

expansion ; Competitive

remuneration,

International Career ,

Career Development

Global Citizen

Key Strengths Learning Environment: How is

learning related to creating new

ideas and making them happen?

Innovation Agenda: What role do

new ideas play in the big picture of

the organization?

Key Improvement

Large Scale Implementation:

How effectively are products,

services and processes carried out

on a large scale?

Aligned Organization: How does

the way we are organized affect new

ideas?

SCG International Co.

Opportunity Development: How

effectively are ideas converted to

actual products, services or

processes?

Innovation Development Project Survey

by Accenture

Idea Generation

Resource Allocation

Opportunity Development

Large Scale Implementation

Learning Environment

Knowledge Management

Aligned Organization

Innovation Agenda

Innovative Culture

Rewards & Recognition

74% / 81%

73% / 77%

70% / 80%

64% / 78%

87% / 86%

74% / 81%

66% / 80%

80% / 81%

78% / 85%

82% / 88%

0% 20% 40% 60% 80% 100%

SCG compared with international companies

SCG CURRENT CULTURE

Based on the management interviews and focus groups, the team

identified some key cultural characteristics common for all

5 Business Units.

“Everyone always talk about

openness and sharing new

ideas – but in reality nothing

happens.”

“People are risk-averse to

protect themselves – want to

make „safe‟ decisions.”

“Teamwork facilitates the

sharing of ideas and

knowledge.”

“Employees are disciplined

in the sense that they finish

what they are committed to.”

Teamwork

Disciplined

Systematic

4 Core Values

Brotherhood

Drivers Lack of Openness

Risk-Averse

Top-Down

Seniority

Comfort Zone

Hierarchical

Blocks

Conservative

Innovation Development Project Survey

16

Proactive Recruitment

for new competent ,

mid-career &

external innovators

Aligning People to Business Strategy

Value Added Products &

Services Link Performance Measurement, Rewarding System & Career Management

To innovative result

Strengthen competency based

& skill based development at a high level to build tech. experts as a

foundation for the innovative organization

Develop Appropriate

Retaining System For R&D Staff

Future

Perspective people

Create Learning Org., Knowledge

Management System in order to Shift Culture to

become Innovative Organization

17

INNOVATIVE CULTURE – BUILDING BLOCKS FOR THE NEW GROWTH

Innovative culture is a foundation of high-value added products & services….

Culture

(Inno-People)

Open Minded

Thinking out

of the Box

Assertive

Risk taking

Eager to

learn

R&D

Continuous

Improvement

Our own

technology

Own IP (Intellectual

Property)

+

High Value

Products/

Services

High value products and services

HUMAN RESOURCE MANAGEMENT MODEL

EMPHASIZES:

• Need to search for new ways of working

• Central role of managing in promoting change

• Treatment of workers as individuals rather than part

of a collective workforce

• Encouragement of workers to consider management as PARTNERS rather than as opponents – US and

US, rather US and Them.

HR SKILL IN 7 CRITICAL AREAS: KEY TO FUTURE SUCCESS IN THE PROFESSION AND WIDELY

PRACTICED BY 2025

This PhotoCC BY-SA

Agenda • People Management and Development

• People Strategy to Align with Organization Direction

• Global Perspective in Changing and Disruptive World

• Case Study

• Q & Share

CHANGE MANAGEMENT

MOPH

Manoon Sunkunakorn

July 5, 2019

This Photo by Unknown Author is licensed under CC BY-NC-ND

Effectiveness (E) = ประสิทธิผล Quantity (Q) = ทรัพยากร

Acceptability (A) = การยอมรับ

“Fit-for-purpose

is no longer good

enough. Organizations

and leaders need to

become fit-for-future.”

Melissa Swift

Global Leader for Digital Solutions,

Korn Ferry

Agenda • People Management and Development

• People Strategy to Align with Organization Direction

• Global Perspective in Changing and Disruptive World

• Case Study

• Q & Share

CHANGE MANAGEMENT

MOPH

Manoon Sunkunakorn

July 5, 2019

This Photo by Unknown Author is licensed under CC BY-NC-ND

Effectiveness (E) = ประสิทธิผล Quantity (Q) = ทรัพยากร

Acceptability (A) = การยอมรับ