A Strategic Approach to People Development

Team #1 MembersWade AllemanDarren BondGlyn BoothBruce BryanRod Denton

Marilynn EdwardsKeith GoellerTrey Jordan

Chanel LagardeDave Lawler

Michele SlaterDaron Whisman

Bouygues Management InstituteEMBA 743 – Global Strategy

“Je suis heureux de vous revoir”

Actual Number of Births per Year in the U.S.

2

3

4

5

1927 20021946 1965 1984

Depression45.4 mil

1927 to 19452001 - 56 to 742006 - 61 to 79

Baby Boom75.5 mil

1946 to 19642001 - 37 to 552006 - 42 to 60

Baby Bust66.0 mil

1965 to 19832001 - 18 to 362006 - 23 to 41

Baby Boomlet74.6 mil

1984 to 20022001 - 0 to 172006 - 4 to 22

Source: U.S. Bureau of the Census

Workplace Characteristics

Strong work ethic

Hoe to end of row

Manage

Loyal to employer

Independent but

conventional

Work well

with others

Technically

savvy

Follow the leader

Strong chain

of command

Want to win

Money/principles

Mixed

Manage (lead/follow)

Mixed

Care deeply about

what others think

Want others to work

with them

Technically

challenged

Lip service to mission

Mixed

Want to win

Principles/satisfaction

Lifestyle first

No need to lead

Loyal to skills

Don’t care what

others think

Work best alone

Technically

savvy

Care about mission

Individual first

Want to win

???

Lifestyle first

???

???

Don’t care what

others think

Work best alone

Technically

sophisticated

Must have mission

Individual first

Want to win

Baby Boom1946-1964

Baby Bust1965-1983

Baby Boomlet1984-2002

Depression1927-1945

Strong work ethic

Hoe to end of row

Manage

Loyal to employer

Independent but

conventional

Work well

with others

Technically

savvy

Follow the leader

Strong chain

of command

Want to win

Money/principles

Mixed

Manage (lead/follow)

Mixed

Care deeply about

what others think

Want others to work

with them

Technically

challenged

Lip service to mission

Mixed

Want to win

Principles/satisfaction

Lifestyle first

No need to lead

Loyal to skills

Don’t care what

others think

Work best alone

Technically

savvy

Care about mission

Individual first

Want to win

???

Lifestyle first

???

???

Don’t care what

others think

Work best alone

Technically

sophisticated

Must have mission

Individual first

Want to win

Baby Boom1946-1964

Baby Bust1965-1983

Baby Boomlet1984-2002

Depression1927-1945

Source: Human Resource Institute

Workplace Survey Results

Workers of different generations blend as they work together; age is not a major factor at work

Not Sure11%

Strongly Disagree

6%Strongly

Agree2%

Disagree50%

Agree31%

Source: Human Resource Institute

Workplace Survey Results

39

35.8

34.3

35.2

36.6

38

39.4

40.6

30 32 34 36 38 40 42

1970

1975

1980

1985

1990

1995

2000

2005

Age

Median Age of the U.S. Labor ForceMedian Age of the U.S. Labor ForceSelected Years, Actual and ProjectedSelected Years, Actual and Projected

Source: Human Resource Institute

Workplace Survey Results

The Age Distribution of the Labor Force Will Continue to Shift

Source: Human Resource Institute

19%27%

25%

16% 18%24%

14% 12% 14%

24%16%16%

27%28% 21%

1979 1992 2005

55 Years and Older

45 to 54 yrs

35 to 44 yrs

25 to 34 yrs

16 to 24 yrs

Percent Distribution by Age of the Civilian Labor Force

19%27%

25%

16% 18%24%

14% 12% 14%

24%16%16%

27%28% 21%

1979 1992 2005

55 Years and Older

45 to 54 yrs

35 to 44 yrs

25 to 34 yrs

16 to 24 yrs

Percent Distribution by Age of the Civilian Labor Force

• Company Information– 184 Hospitals, 79 surgery centers– United States, England and Switzerland

• Key Issues– Age pyramid at Executive Management positions– Shortage of candidates for CNO position– Shortage of primary workforce (Registered Nurses)

• Best Practices– Extensive Executive Development program– Partnership with universities– Incentives to attract candidates into nursing field

• Company Information– Primary business of exploration, production and refinery of

crude oil and natural gas– Operates in 145 countries and employs 115,000 people

• Key Issues– Age pyramid with technical staff employees– Economic volatility of the industry

• Best Practices– Mentoring new employees with experienced staff– Focused recruitment strategy– Internal talent sourcing system

Shell Oil Company

• Company Information– Automotive Manufacturer– 53 countries, 365,000 employees, $177B Revenues

• Key Issues– Transfer of knowledge across global operations– Size of company makes change difficult

• Best Practices– GM University– Interactive Distance Learning and e-Learning– Strong focus on value of diversity

• Company Information– Agricultural Herbicide and Biotechnology– 51 Countries, 14,000 Employees

• Key Issues– Shift from chemical company into biotech company– Switch from manufacturing to academic culture– Attracting and retaining key technical resources

• Best Practices– Extensive training on “business case” for diversity– Formal mentoring program for future leaders– Well defined attraction and retention program for critical skills

• Company Information– Subsidiary of Occidental Petroleum– U.S. based commodity chemicals

• Key Issues– Amalgamation of previous chemical companies– Refocus on core business– Age pyramid at executive levels and primary workforce

• Best Practices– Consistent and well defined/documented practices– Leadership training for all levels of managers– Well defined and deliberate succession planning– Leaders training leaders

• Company Information– Insurer of medium to large casualty risk clients – Privately held ($50M)

• Key Issues– Transfer of knowledge from founder to successors– Knowledge concentrated in few key employees– Train employees on IT functionality

• Best Practices– Well defined and executed succession plan– Deliberate/focused IT strategy – Creation of employee loyalty

• Company Information– Aerospace and Defense– 25 countries, 125,000 people, $25B Revenues

• Key Issues– Age pyramid across all levels of the organization– Retaining IT technical skills to maintain core business

• Best Practices– Mentoring new employees with experienced staff– Flexible work environment– Enticing employee retention incentives– Comprehensive succession planning

• Documented succession plans

Common Best Practices

• Diversity training - extreme emphasis on valuing

and understanding diversity

• Mentoring programs designed to capture and pass

on the institutional or tactical knowledge of older employees

• Leadership development programs

• Specialized/targeted training programs

Common Best Practices (cont’d)

• Hiring and training of more multi-tasked employees

• Aggressive recruiting and retention programs

• Genuine management commitment to people development

Final Thoughts

• Age pyramid and emerging diverse workforce

• Alignment of people processes with business strategy– Similar HR “Tool Kit” applied strategically

• Valuing and understanding diversity is a must for:– Successful succession planning– Adapting to the changing market forces

Questions ?

Team #1 MembersWade AllemanDarren BondGlyn BoothBruce BryanRod Denton

Marilynn EdwardsKeith GoellerTrey Jordan

Chanel LagardeDave Lawler

Michele SlaterDaron Whisman

Bouygues Management InstituteEMBA 743 – Global Strategy

“Je suis heureux de vous revoir”