strategic talent plan in michelin china julie chu nov. 2009

PREPARED BY CHINA SP METHOD TEAMCHINA SP

Strategic Talent Plan in

Michelin China

Julie Chu Nov. 2009


Agenda

• World tire market• Michelin introduction• Michelin in China• Talent Market in China (Past & Present)• Strategic talent plan in Michelin China


Source : Global Tire Report 2006(Tire Business daté du 28/08/2006)

The world tire market in 2005

18.2%

17.7%

17.3%6.3%

21.3%

3.6%4.5%

2.9%

2.5%

2.1%

1.9%1.8%

Bridgestone

Michelin

Goodyear

Sumitomo

ContinentalPirelli

Yokohama

Hankook

Cooper

ToyoKumho

Others


Tire Market in China

• Main competitors– Bridgestone– Good Year– Hankook– Local manufacturers


Products and Services

Passenger Car And Light Truck Tire

Truck And Bus Tire

Earthmover Tire

Aviation Tire

Maps & Guides


Multi-Brand Strategy

Michelin: The Most Famous Tire Brand in the World,

Warrior: The Best Known and Longest Established Local Brand in China, Targeting at Mass Market.

BFGoodrich: Originally from the US, Targeting at New-Generation Drivers, Who See Motoring as a Form of Excitement and Expression.


Customers

• Original equipmentOriginal equipment • Vehicle manufacturersVehicle manufacturers

– for all categories for all categories – and all vehicles, and all vehicles, – from bicycles to huge earthmoversfrom bicycles to huge earthmovers


Customers

• ReplacementReplacement

• DistributorsDistributors

– Specialist tradersSpecialist traders

– DealersDealers

– Auto centersAuto centers

– Garages, service stationsGarages, service stations

– SupermarketsSupermarkets


Michelin History in China


19881988: Sales Office Hong Kong: Sales Office Hong Kong



1989: 1989: Representative Office BeijingRepresentative Office Beijing



12/1995: 12/1995: Joint Venture 1 (MSTC) With STGF Shenyang; Joint Venture 1 (MSTC) With STGF Shenyang;

1996: 1996: Production of the First Passenger Car Tire; Production of the First Passenger Car Tire;

04/199704/1997:: 3 More JVs With STGF Shenyang. 3 More JVs With STGF Shenyang.

1/1999: 1/1999: Start Truck Tire Production in Shenyang Start Truck Tire Production in Shenyang



191998: Training Centre in Beijing 98: Training Centre in Beijing



4/2001: 4/2001: Set Up a Joint Stock Company With STRCSet Up a Joint Stock Company With STRC

Shanghai Michelin Warrior Tire Co., Ltd.Shanghai Michelin Warrior Tire Co., Ltd.



12/2002: 12/2002: Set Up Michelin( China) Investment Co.,Ltd.Set Up Michelin( China) Investment Co.,Ltd.



Locations in China

Hainan

Xinjiang

Quinghai

Tibet

Sichuan

Yunnan

GuangxiGuangdong

Hunan

Inner MongoliaGansu

Zhejiang

Ningxia Shanxi

Guizhou

Shanghai

Fujian

Jiangxi

Hubei

Henan

Anhui

Jiangsu

Liaoning

Jilin

Heilongjiang

HebeiTianjin

Shandong

Guangzhou 广州

Bejing 北京

Shaanxi

Shanghai 上海

Shenyang 沈阳

Hong Kong 香港

Chengdu 成都 Wuhan 武汉

Xi’an 西安


China Talent Market

Past & Present


China’s Talent MarketPast


China’s Talent MarketThe Present


China’s Talent Market


•70% of Top 500 Fortune companies is experiencing Talents shortage

•92% of companies present in the market is also experiencing a Talents shortage

0

5

10

15

2002 2003 2004 2005

2002

2003

2004

2005Talents’ Turnover in percentage

One of the Top Priorities for a CEO is Attracting and Retaining top talents

HRM Challenges in China, by Prof. Serena ROVAI Uni-Italia Intergovernament Centre Anantara LtD


Facts sheet of Michelin China SP

• More than 5500 employees• Double digital growth of headcount in some activities

• Average Volume: a few hundred hires by year

• 5% senior management ,5% technical workers and 90%

white collars

• Nearly 50% commercial staff

• Less than 8% turnover rate among white collar employees


Mission Of Service Personnel

People is not a resource, but an asset.

Ensure that motivated, responsible and competent people are available where and when they are needed

at all times and in all areas of activity.

This mission must be fulfilled at the highest level of performance in terms of quality, cost and timeliness.


5 Principles of SP

• Seek to establish and manage the best match between the person and the company

• Develop the international outlook of the individuals and teams

• The management and development of personnel is a responsibility shared by the person, the manager and the Personnel Service

• Guarantee and facilitate a means of recourse for everyone

• Preserve the cohesion of Group Michelin


How SP to cope with business growth?

• SP = Service Personnel– Recruitment– Integration– Training

• SP = Strategic Personnel– Career development– GPC– Rewards– Engagement & retention


Recruitment

• We don’t only hire for a specific position, we hire people to meet the company’s current and future needs

• Position fit• Cultural fit• Development fit

• Career managers’ involvement in the recruiting process• SP reserves a special budget to hire people who may not

necessarily be needed at the current stage


Integration Process

• Started since the recruitment stage• Co-managed by the business manager and the career

manager• Monitoring the key factors to the successful integration

– Relationship and networking – Role clarity– Culture – Early wins– Accelerate learning


Who is involved?Who is involved?Who is involved?Who is involved?

Individual

Manager

Career management process

Career ManagerCareer

Manager


• We manage our people’s potential development

• Employee’s potential can be assessed • Through their performance • Through their behaviors and the way to reach the targets

• Potential characteristics are grouped under 3 headings• Driving energy(leg) • Thought (head)• Leadership(heart)

What is career management?


Potential Matrix• Driving energy(leg)

• Ambition• Energy• Dynamism• Adapbility

• Thought (head)• Make sound decision• Act strategically• Think creatively

• Leadership(heart)• Communication• Motivate others• Develop others• Establish relationship & trust


• GPC is a continuous and long term focused system to anticipate manpower needs in the coming 5 years

• It’s integrated into the annual budget process and implemented at country level

• To make sure critical competence localized and to meet current and future needs on critical competence.

Gestion Previsionnel des Competences


• Population assessment/Metier diagnosis• Succession plan & localization plan• Vivier / pepiniere recruitment• Overseas training• Expatriation

How to implement GPC?


Market

Performance

Person

Position

We pay our employees according to market factors.

We pay according to job responsibility.

We pay according to performance results.

We pay according to personal competency.

Remuneration Philosophy


By doing all the previous mentioned correctly, we can

achieve a high level of employee engagement and employee

retention


Thanks for your attention

strategic talent plan in michelin china julie chu nov. 2009

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