Leadership at Holcim Talent Development Program Europe

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Leadership at HolcimTalent Development Program
Europe

• Michaela Rueda
• April 30, 2004

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Agenda

• Leadership at Holcim
• Talent Development Program Europe

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Leadership Context
From stand-alone entrepreneur in a Group of
companies
To networked entrepreneur in a Group

• Independent strategy
• Growth through acquisitions and mergers
• Decentralized management
• Local brands, low profile
• Diversified business
• Production centered
• Profit driven regarding environmental, social and
  technical standards
• Self sufficient production and sales
• Self sufficient in support functions
• Being a member of a large Management team
• Business units managed independentlyManaging
  large organizations where individual skills and
  performance were not so critical
• Managing people whos life and career was
  centered on the company

• Group strategy with local execution
• Growing profits by managing prices and costs
• Global standards local management
• Global brand, high visibility (Internet, media,
  etc)
• Concentration on core business
• Customer centered aspiration
• Heavy government and other stakeholder
  involvement
• Optimization across borders in regional markets
• Customers of Shared Service centers
• Often being alone as a country manager within a
  cluster
• Integrated and interdependent management teams
• Managing lean organizations where each
  individuals performance is critical
• Leading and motivating people of the new
  generation

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Up until now
Assessment for next position by external
consultants
Relate MD to Business Plan
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MD Process

• Performance Appraisal
• Potential Assessment
• Performance-Potential Grid

ImplementingIDP
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5

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Succession Planning
Set up of Individual Development Plans (IDP)
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Up until now
Latent Potentials
Leaders of tomorrow
Potential
Focus group of development measures To be
developed as future leaders
VHP
Can we make them perform better?
Leave?
HP
?
Potential Leavers
Right person in the right place
S
Training to meet job requirements
Perform or leave !
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Performance

E
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What has been done so far?

• Group Meeting Chicago, October 2003
• Panel Discussion on Leadership with 7 key leaders
  on podium
• Supervisory Board present and supportive
• Leadership Survey, January 2004
• Online survey sent to 106 top managers around the
  world
• Response rate of 85
• Feedback given to Management Meeting 04
  Delegates, all survey participants and HR
  managers via mail

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Results of Leadership Survey

• GAPS
• One clear, globally consistent set of
  expectations of leaders
• Make better use of Strategic Competencies
• Leadership abilities (a must)
• Diversity (of leaders)
• One clear, globally consistent leadership process
• Should be practical and simple
• Global ownership/sourcing and development
• Recognition of people-developers
• Mandatory Dialogue / IDPs
• Monitoring of engagement

2 MAIN THEMES CLEAR EXPECTATIONS GLOBAL,
CONSISTENT PROCESS
PROACTIVITY
ACCOUNT-ABILITY
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What has been done so far?

• Leadership Workshop, February 2004
• One day workshop on results of survey and key
  action areas
• CEO, 2 EXCO, 5 CEOs and 5 HR Managers
  participated
• Output being used to draft leadership strategy
• Succession Planning
• This years planning cycle concentrated more on
  realizable action and development plans, which
  will be monitored throughout the year
• Revision of centralized management trainings

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Management Learning Events at Holcim - Framework
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Next steps

• Elaborate new leadership profile, which describes
  leaders who are effective in the "new world" of
  Holcim
• EXCO Workshop, 3Q
• Finalize leadership strategy, along with its
  impact on related tools and processes
• Formal adoption and action planning at EXCO
  meeting 4Q
• Communicate at end of 2004.

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Agenda

• Leadership at Holcim
• Talent Development Program Europe

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An IMD project was launched to analyze the
current status of one of the identified
development drivers in our Area
Large infrastructure projects remain volume
drivers. However, volumes within the Area will
show only modest growth within the next years
More and more international customers are active
in the region
Availability of Human resources will be a
limiting factor for business development
Environmental legislation is likely to become
tougher (CO2 Tax)
Harmonization in Europe is widely fulfilled,
though nationalism still affects business by
setting rules and legislation
Costs of energy are expected to be high
throughout the region
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Main outcomes of the IMD project

• Lack of commitment from Top and Senior Management
  to development
• Dialogue and Management Development are poorly
  implemented
• Managers lack time for own development
• Demand for more transparency and clear career
  paths
• Continuous feedback and recognition expected from
  managers
• Based on outcomes some recommendations were made
• Include development objective in yearly
  objectives of top and senior managers in order to
  increase commitment
• Regular communication by top and senior
  management of objectives and achievements of the
  company
• Offer a structured development program to high
  potentials

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TDP is aligned with Holcims mission and vision

• Objectives
• Provide structured learning and development to
  meet daily challenges and prepare for future
  assignments
• Develop the current and future leaders of our
  region by equipping them with management
  know-how, leadership skills and understanding of
  Holcims strategy and culture
• Target Group
• Middle managers and selected senior managers

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General outline
Functional or other seminar
General MgtProgram
Functional or other seminar
IDP Review
Team event
Kick-off Feb. 15-18, 2004
Closing eventApril 2005
1st year
2nd year
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Kick-off Seminar (February 15 18, 2004 in
Zurich)

• Objectives
• To communicate objectives and design of the
  entire Talent Development Program
• To introduce Holcims and Europe's strategy as
  well as ongoing initiatives
• To provide the opportunity to work on the
  analysis of his/her career
• To set-up an Individual Development Plan which
  will be discussed and agreed with the immediate
  supervisor and local HR after the kick-off
  seminar
• To get to know other participants and start
  networking

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Kick-off Seminar (February 15 18, 2004 in
Zurich)
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Kick-off Seminar (February 15 18, 2004 in
Zurich)
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Kick-off Seminar (February 15 18, 2004 in
Zurich)
Participants have to finalize their IDPs with
supervisor and local HR and send final version
to Class Sponsor and CHR !
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General Management Program (Bled, Slovenia)

• Objective To provide managerial knowledge,
  skills and attitudes as well as leadership
  capacity to take over strategic responsibilities
• GMP includes project work on a managerial issue
  of strategic importance to own company. Project
  report includes an analysis, practical solution
  and action plan.
• 5 weeks (2 modules) plus a commitment of 50 hours
  in between modules
• Spring Module I March 14 to April 3,
  2004 Module II May 31 to June 11,
  2004Autumn Module I October 10 to 30,
  2004 Module II March 14 to 25, 2005
• Admission requirements
• High potential managers who will be moving
  towards more general strategic responsibilities
  (min. 2 years mgt. experience)
• Applications to be submitted the latest 1 month
  before program start
• Candidates have to pass an interview in English
• More details see http//www.iedc.si/eng/programs/
  gmp.html

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Other mandatory events aim at strengthening the
Group feeling

• Team Event (June 2004)
• Workshops focusing on change management and
  communication as identified by participants
  during the Kick-off Seminar
• Realization of team building exercises
• Closing Event (April 2005)
• Graduation ceremony

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Other educational modules should be based on
individual gap analysis

• Participants will attend up to two additional
  functional or other modules (e.g. Cement
  Manufacturing Course, Marketing, etc) identified
  in their IDP according to individual and business
  needs
• Objectives are set for each module
• Participants report back on their learnings after
  each module (i.e. written learning report)
• Organizational Approach
• Based on the IDPs local HR identifies the
  educational modules needed. These modules may be
  held centrally in the region for a group of
  participants or participants may join courses of
  business schools or other providers.
• CHR assists in identifying common development
  needs in the region and organizes joint modules
  when applicable.

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Learnings from all modules should be transferred
to the job environment (learning on-the-job)

• At the completion of each agreed educational
  module, participant has to agree with supervisor
  which are the three main elements he/she would
  like to apply out of what was learned in the
  educational module.
• Organizational approach
• Supervisors provide challenging assignments and
  on-the-job learning opportunities as identified
  in the IDP supported by the class sponsor.

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Ongoing feedback is crucial for development

• Participants will receive feedback from three
  sources
• Feedback from supervisors and project managers
  via the dialogue process and ongoing coaching
• Feedback from class sponsor
• Feedback from educational modules
• Organizational Approach
• Local HR provides information and support to
  batch sponsor, mentors and supervisors

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Overview of roles and responsibilities
Area Management is sponsor and takes final
decision on participants

• Class Sponsor
• Monitors the program
• Serves as sparing partner for setting up IDPs and
  supports implementation
• Reviews participants progress and feedback

• Supervisor
• Signs IDPs off
• Gives ongoing feedback
• Provides challenging on-the-job assignments

• Local HR
• Supports participants and supervisors
• Coordinates individually defined educational
  modules

• CHR
• Has overall responsibility for design and
  organization of events
• Identifies common development needs
• Supports GCs, Sponsor participants

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Class 2004 Kick-off Event Zurich, February 2004
Emil (RO), Florin (RO), Endre (HU), Laszlo (HU),
Martin (SK), Slobodan (SER), Teodor (HR)
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Leadership Development is work in progress!