bme pmm bme-ecube young purchasing talent development … · pre-hiring onboarding oj-training /...
TRANSCRIPT
BME-Ecube Young Purchasing Talent Development BootCamp BME Purchasing Manager Meeting
10 June 2015
China’s Talents need upgraded skills, yet existing talent development concepts do not have the desired effect on driving business performance.
The Talent Development Challenge
32
40
39
38
37
20
22
21
28
26
17
12
17
13
15
Execu1ve leadership team
Midlevel management
Technical specialists
Frontline employees
Frontline supervisors
Extremely/very effec1ve Somewhat effec1ve Slighty/not at all effec1ve Don't know
Effectiveness of education programs in preparing given group of employees to drive business performance
Source: McKinsey Global Survey 2010
Currently, companies often invest their training budget in a variety of low-price, standardized, stand-alone trainings with little impact on job performance.
The Talent Development Challenge The skill gap cannot be filled efficiently by traditional skill development formats.
10 June 2015 Slide 3
Existing company programs result in long time-to-performance.
Value Skills
Time
Current focus of Talent Development
Pre-Hiring Onboarding OJ-Training / Mentorship
Skill Training
Full Performance
Skill gap
Value Skills
Time
Current focus of Talent Development
Pre-Hiring Onboarding OJ-Training / Mentorship
Skill Training
Full Performance
Skill gap
The Talent Development Challenge The early involvement principle shows that the relative benefits for developing employees are highest early on in their careers, while the relative costs are lowest.
10 June 2015 Slide 4
The earlier companies get involved in developing their employees’ skills, the more impact their initiatives will have.
Impact on skill development
Costs for further development
One of our clients decided to get involved early and go with a different approach to solve his
Talent Challenge.
Case study
10 June 2015 Slide 5
Meet General Manager Hu:
• General Manager since 2012
• Engineer, but a Philosopher at heart
• Born in early 1960’s
• Needs help finding, developing and integrating fresh Talent
Case study Supplier of electronic components and solutions opens new plant.
10 June 2015 Slide 6
GM Hu needs to build a PUR team from scratch to support the new plant.
Meet his company:
• Industry: complex electronic components and solutions
• Location: N. China
• PUR Vol.: ~ RMB 325 million
• Suppliers: ~ 140
• POs: ~ 3.600
Case study The company’s strategic change towards a professional region-for-region purchasing organization demands the creation of a new purchasing team.
10 June 2015 Slide 7
Professional region-for-region approach is expected to generate savings of up to 30% (~ RMB 98 million).
Company strategy:
• So far, GM Hu's company has produced components for subsidiaries of selected European customers in China.
• Sourcing was conducted on a small scale and supported from German HQ.
• Now, sourcing for Asia-Pacific and large-scale localization of production for China is planned. This requires:
– Regional purchasing of more complex parts and components.
– Set-up of regional supplier portfolio.
– Professional indirect purchasing.
– Building PUR team by hiring 9 fresh Talents for future growth.
Case study Several challenges have resulted in a delay of the ambitious purchasing targets.
10 June 2015 Slide 8
Expected savings target of 30% (~ RMB 98 million) was not achieved due to delay in developing high-performing PUR team.
Key challenges:
• Multiple issues within existing team of experienced buyers.
• Existing team was trained without visible effects on team performance.
• Recruitment agencies failed to find adequate fresh Talent.
• Hired Talent lacked capabilities to hit the ground running.
Value Skills
Time
Current focus of Talent Development
Pre-Hiring Onboarding OJ-Training / Mentorship
Skill Training
Full Performance
Skill gap
Case study In order for GM Hu’s team to hit the ground running, we made use of the Early Involvement Principle to increase the impact and ROI of his investment.
10 June 2015 Slide 9
According to the EIP, the earlier companies get involved in developing their employees’ skills, the higher the relative benefits and the lower the costs (à increased ROI ).
Impact on skill development
Costs for further development
“We need to find and integrate 9 fresh Talents with an excellent technical background.
We can then develop their purchasing and interpersonal skills.”
The approach
10 June 2015 Slide 10
The approach We followed a pragmatic approach to help GM Hu solve his Talent Challenge by focusing only on what works and discarding the rest.
10 June 2015 Slide 11
Our recruitment specialists helped GM Hu find, assess and select a number of adequate candidates, 9 of which successfully completed our customized skill development program.
>>> Find >>>
>>> Assess >>>
>>> Select >>>
>>> Develop >>>
3 weeks of intensive, rigorous personal and professional skill development
6-12 months of individual and tribal coaching
Focus on hard, soft and methodical skills
Built according to our client's specific situation
Post-Hiring Skill Customization
The approach Program design principles.
10 June 2015 Slide 12
We made sure to base the program design on sound principles to achieve the desired effects on an individual and organizational level and effectively support GM Hu’s company.
Research- & data-driven Experiential Real-life
Personalized Holistic Relevant
The approach Program curriculum.
10 June 2015 Slide 13
The program design resulted in a curriculum, which focused on increasing GM Hu’s team’s effectiveness in all areas relevant to their individual and the organization’s success.
Week 1
Week 2
Week 3
Understand Yourself
Understand Others
Understand Purchasing
Do Purchasing
The approach Program timeline.
10 June 2015 Slide 14
The activities were integrated based on the latest Talent Development research and on GM Hu’s specific requirements. This ensured optimal learning effects and company relevance.
Tribal coaching
Talent Development activities
Personalized learning path
1:1 coaching
Initial assessment 99.9% of activities are designed to have job & company relevance
Impressions.
10 June 2015 Slide 15
The approach
Training 1:1 Coaching Tribal Coaching
Project Work Team Building Survival Training
Personalized Learning Sense making Networking
Key results included improving individual time-to-performance, building a functioning team and saving GM Hu time and money in growing his
organization for the future.
The results
10 June 2015 Slide 16
The results The program significantly improved time-to-performance.
10 June 2015 Slide 17
By substituting standardized, stand-alone training initiatives with an intensive, focused and holistic program, we significantly improved time-to-performance on our path towards 100%.
Value Skills
Time
Current focus of Talent Development
Pre-Hiring Onboarding OJ-Training / Mentorship
Skill Training
Full Performance
Skill gap
Post-Hiring
Skill Customization
The results A functioning team was formed within a short period of time.
10 June 2015 Slide 18
GM Hu received a team that already had a good idea of its strengths and weaknesses and was ready to hit the ground running within only 4 months.
• 4 months till project completion
– 3 months recruitment + 3 weeks talent development
• Helped GM Hu find adequate candidates that would perform both as individuals and as team members:
– Increased sense of loyalty among group members and towards company
– Increased sense of purpose: “WE”
– Loads of fun!
• The team is already on its way to achieve the company’s cost saving targets.
The results The program was a significant investment for GM Hu, but in the end it more than paid off.
10 June 2015 Slide 19
Compared with the “100% Scenario”, the Year 1 savings in the “80% Scenario” amount to +280,000 RMB, while savings after two years amount to +1,213,120 RMB (ca. 24,1%).
80% Scenario:
Candidate criteria:
9 x 80% candidate 5+ years experience
ENG + basic PUR
Monthly gross salary: 12,000 RMB
Annual gross salary: 144,000 RMB
Annual PUR team gross: 1,296,000 RMB
Recruitment fee 25%: 324,000 RMB
Program fee: 800,000 RMB
1st year costs: 2,420,000 RMB
2nd year costs: 1,296,000 RMB + 8% salary increase = 1,399,680 RMB
Total costs 2 years = 3,819,680 RMB
100% Scenario:
Candidate criteria: 9 x 100% PUR candidate 10+ years experience
ENG + PUR
Monthly gross salary: 20,000 RMB
Annual gross salary: 240,000 RMB
Annual PUR team gross: 2,160,000 RMB
Recruitment fee 25%: 540,000 RMB
1st year costs: 2,700,000 RMB
2nd year costs: 2,160,000 RMB + 8% salary increase = 2,332,800 RMB
Total costs 2 years = 5,032,800 RMB
The results What else did we achieve?
10 June 2015 Slide 20
A Happy General Manager Hu J
• A unique Purchasing Talent Development program that:
– Improved time-to-performance of recently hired Talent.
– Upgraded skill base of existing and fresh Talent with latest PUR input.
– Provided competitive advantage for talent management as talent incentive.
– Provided HR and PUR with hassle-free organization of complex program.
– Included the possibility to develop a customized program revolving around specific business issues of GM Hu’s company.
– Provided significant savings compared with hiring only 100% candidates.
Summary Which were the most important benefits General Manager Hu received?
10 June 2015 Slide 21
Out Post-Hiring Skill Customization Program provided GM Hu with a unique format to attract, develop and retain PUR Talent, while ensuring that their skill base is up-to-speed.
ContactDr. Saša Šarić Managing Director Ecube
www.ecube-china.com
Anton Pietsch General Manager BME Asia
[email protected] www.bme.de/china