Ƶilelebiz 2010: deloitte / doina patrubani

Mass Career CustomizationOne Size DOESN’T Fit All

Zilele BIZ, 2010

Innovation Day

Doina Patrubani

Director in Charge

Deloitte Consultanta

“They always say time changes things, but you actually have to change them yourself.”

~ Andy Warhol

© 2010 Deloitte Romania

The Convergence of Key Trends is Dramatically Changing the Workforce.

Workforce in 2007 and beyond

Changing expectations of men

Evolving expectations of Gen X and Gen Y

Increasing number of women

Increasing impact of technology

Changing family structures

Shrinking pool of skilled labour

Workforce trends convergence

Key Trends Key Trends

The workforce has changed, but the workplace has not.


A: Flexible Work Arrangements (FWAs)

Flextime Reduced Hours /Part-Time

Compressed Work Week

Banking of Hours

Leaves / Sabbaticals Job SharingTelework /

TelecommutingGradual

Retirement

Q: What is today’s response to this misalignment?


FWAs Are Not the Solution to the Structural Shift in the Workforce

FWAs are…

• One-off point solutions that do not scale

• Generally negotiated in a state of crisis

• Not integrated into nor supported by Talent management processes and procedures

• Too often focused exclusively on hours and work location at a specific point in time

• Not designed to address how careers unfold over time nor address other aspects of a career including pace of progression, assignments, and role

• Viewed as exceptions or accommodations to a seemingly accepted standard.


Mass Product Customization is a Significant Part of Today’s Consumer Marketplace.

If you can customize your coffee, car and

sneakers, why not your

career?


Mass Career Customization Delivers Similar Benefits as Mass Product Customization.

Increased loyalty from greater connections with customers

Increased loyalty from greater connections with employees

Reduced supply chain costsDecreased workforce acquisition and retention costs

Increased profitability from value pricing

Increased productivity through greater satisfaction and career-life fit

Mass Customization Shared Benefits

Mass Product Customization Mass Career Customization


Basic Tenets of Mass Career Customization

Recognizes that careers ebb and flow over time

Is more dynamic and adaptable to both individual and organizational needs

Enables choices

Makes trade-offs more explicit

Provides greater transparency and therefore trust with employees

Institutionalizes framework/process

Extends the bounds and consistency of what’s acceptable


The MCC Profile Dimensions Make It Possible to Depict Career-Life Choices and Associated Trade-Offs

PaceOptions relating to the rate of career progression

WorkloadChoices relating to the quantity of work output

Location/ScheduleOptions for when and where work is performed

RoleChoices in position and responsibilities

The Four Dimensions—and Interrelationships of—MCC


MCC Recognizes that an Individual’s Career Engagement Changes over Time…Creating a Sine Wave of Sorts

Career years: 0-3Post MBA

Career years: 4-7Changed industries

Career years: 8-14Growing family

Career years: 15+Mid-Career


A: No. MCC is already going on.

Q: Is MCC a radical departure from what we do today?

MCC organizes, structures, and institutionalizes the best

of what already works today. Custom careers become

“business as usual”— just more consistently and

equitably.


A: The corporate ladder is morphing into a corporate lattice TM model. MCC enables a lattice organization.

Q: Stepping back, what’s really going on?

• Traditional hierarchy• Singular path upward• Work-versus-life

balance• Fits more traditional

family structure• Assumes workers’

need remain consistent over time

• More conducive to evolving matrix structure

• Multiple paths upward• Move faster, slower,

change directors• Career-life fit• Adjusts as workers’

need change over time

Upward momentum

Integrated with talent

management system

Ladder versus Lattice

Corporate Ladder Corporate Lattice

Benefits of MCC


MCC Value Proposition

Successful implementation of MCC provides the individual and organization with long term benefits.

• Provides option value for life’s “what ifs” − Much like a financial option, MCC

provides an “insurance” value to individuals

− Engenders loyalty to employer as a result

• Leads to better decisions for the individual due to greater transparency around career choices− Honesty regarding trade-offs for

MCC choices leads to better calibrated expectations

Individual Organization

• Differentiates your organization’s employment brand

• Develops strategic advantage • Provides insight for improved

succession planning and performance management

• Provides framework for more accurate and complete HR planning and forecasting

• Supports managers by providing consistency and transparency


MCC Provides A Strong Linkage With Key HR and Strategic Initiatives.

MCC should be integrated with other HR initiatives to create a holistic talent management program.

MCC-EnabledCareer-Life Fit

Workforce Planning

Performance Management

Professional Development

Succession Management

Recruiting and Staffing

Mobility Initiatives

Organization Design/Career Pathing

Total Rewards

What do I really want and what do I actually pay for?

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Strategy and remuneration

We aim at… We pay for…

Long-term growth Quarterly results

Teamwork Individual efforts

Ambitious targets that require sustain efforts

Numbers’ achievement – “Let’s make the plan!”

Proper structure, adequate number of employees, balanced budget.

Budget and staff as large as possible

Engagement in view of overall quality Delivery by deadline, even with flaws

Honesty and courage; bad news should be broken in time so we can do something about it.

Good news only; unconditional agreement with the direct superior, may he/she be right or not.

Efficiency and performance Long hours spent at work.

Ideas and contribution in generating value.

Seniority.


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So why the incoherence?

Causes Details

A fascination for the “criterion of objectivity”

Most managers try to set up simple and easy-to-evaluate standards that help at measuring and rewarding performance. This is possible in departments where work is highly predictable. However, in most departments we might witness an undesired shift of objectives.

Placing too much value on extremely visible/noticeable behaviors

Some activities are extremely visible, others less visible, therefore the challenge. Teamwork and creativity are behaviors difficult to reward, as they are difficult to notice and measure.

Hipocrisy A certain behavior is encouraged, although it is not really desired.

Excessive weight of ethics and equity in the detriment of efficiency

Bonuses are granted to everybody in almost equal amounts, which at the end of the day end up de-motivating the best performers.


20 © 2009 Deloitte Consultanta SRL. Toate drepturile rezervate

• Managers complaining that staff is not motivated should ask themselves whether the remunerations systems in place are not rewarding completely different behaviors than the ones they really expect.

• A first step is the honest question: What are the behaviors that we actually reward now?

• The answer might be surprising. Many organizations may realize that they are not paying for what they thought. Many undesired behaviors are caused by an inadequate rewarding system.

• A formal rewarding/remuneration system should generate and encourage the desired behaviors, which are perceived as the most efficient in ensuring the economic health of the organization. Unfortunately, remuneration often becomes an obstacle that must be overcome in order to generate these behaviors.

A new remuneration system

Changing the remuneration system


© 2010 Deloitte Central Europe

Deloitte selected projects Forecasted savings achieved on remuneration system change

Leading food manufacturing company

Large energy distribution company

Source: Deloitte calculations

• Scenarios depicted below emphasize the forecasted savings achieved by selected companies in Romania assisted by Deloitte in implementing a new remuneration system.

• The projected savings for a five years time span by implementing a new remuneration system are calculated against the existing remuneration system (i.e. as percentage from the projected personnel costs incurred by maintaining the existing remuneration system).

Year 1 Year 2 Year 3 Year 4 Year 5

Savings 0.5% 1.1% 1.9% 3.6% 6.2%

Year 1 Year 2 Year 3 Year 4 Year 5

Savings 0.3% 1.7% 2.4% 3.3% 4.6%

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Year 0 Year 1 Year 2 Year 3 Year 4 Year 52,300,000.02,400,000.02,500,000.02,600,000.02,700,000.02,800,000.02,900,000.03,000,000.03,100,000.0

Total Personnel Cost

Existing remuneration system New remuneration system

Year 0 Year 1 Year 2 Year 3 Year 4 Year 580,000,000.085,000,000.090,000,000.095,000,000.0

100,000,000.0105,000,000.0110,000,000.0115,000,000.0120,000,000.0125,000,000.0

Total Personnel Cost

Existing remuneration system New remuneration system




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Ƶilelebiz 2010: deloitte / doina patrubani

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