Talent Management A Key to Sustained Performance Excellence

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Talent Management A Key to Sustained Performance
Excellence
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IndianOil enjoys a dominant position on several
counts . . .
Strong financial performance

• Sales turnover US30 billion
• Profits US1.6 billion
• Ranked 189 in Fortune 500 list

Large presence

• 56 petroleum products market share among PSU
  companies
• 42 national refining capacity
• 69 downstream pipeline throughput capacity
• Operates 10 of India's 18 refineries

Large workforce

• Over 30,000 employees
• Over 10,000 officers

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. . . with strong positions in all market segments
IndianOil share
Segment
Market share
Key strengths
Per cent

• Largest network over 10,000 outlets

Retail

• Largest network of supply points (160)

Consumer

• Most comprehensive product mix and range

Lubes

• Widest reach with 40 million households served

LPG
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Deregulation and enhanced competition has thrown
new challenges and opportunities
Change in consumer behavior with significantly
greater demand pressure on bottom-line
Pricing pressure and rising costs resulting in
serious profitability issues
Demand for exceptional performers retention of
talent
Need to enhance productivity
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What is talent and talent management?
Talent
Talent management

• Managing the talent pool and grooming people to
  be future corporate leaders. Involves areas such
  as
• Identifying and differentiating high performers
• Enhancing competency of high performers
• Matching individual and organisational needs
• Retaining high Performers

An integrated sum of the know-ledge, skill,
potential available in the designated area of
performance that leads to the individuals
capability
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Why talent management is critical in the changing
scenario
Capture best available talent from outside
wherever applicable and retain high performers in
danger of being poached
To discern between star performers and others and
enhance competency of star performers
Provide opportunities for growth and career
develop-ment to a workforce of over 30,000
employees (10,000 officers)
To match individual and organisational needs and
create future business leaders
Build significant skills and capability in
multiple specialist areas across functions
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IDEAL Talent management model adopted by
IndianOil
Identification
Learning


Development


Evaluation
Action plan
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Identification of talent (1/2)






Identify Pivotal jobs
Objectives of pivotal jobs
Principles for selecting pivotal jobs

• Identify the jobs that are most critical to the
  working of the performance units
• Ensure that pivotal jobs are staffed by managers
  with appropriate managerial and functional
  competence levels
• Provide extraordinary focus on the performance
  management of pivotal job holders
• Leverage the pivotal jobs for professional
  development and career pathing of high potential
  managers

• Jobs selected based on three criteria (i) extent
  of financial responsibilities (cost base,
  revenues, margins) (ii) strategic importance of
  job (iii) depth of specialised skills required
• Jobs selected based on importance of role, and
  not tenure/designation
• List of pivotal jobs not restricted to existing
  organisation

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Identification of talent (2/2)





Recruitment
Internal

• Recruitment only at the entry level of officer
  cadre through campus and advertisement stringent
  criteria
• Rigorous selection process
• Psychometric Testing to ensure organisational fit
• Focus on flexibility and ability to think
  laterally

• KRA/KPI and competency defined for critical
  positions
• Various inputs used for selection such as
• Performance evaluation report
• Potential assessment
• Experience portfolio
• Demonstrated skill set
• Leadership ability

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Development of talent (1/3)

• Training focus on functional and behavioral skill
  up gradation - training conducted through
  classroom and on-the-job training
• Problem solving project based training
• Corporate Management institute, Management
  Training Centres
• Nomination to External Training Programs in India
  Abroad
• Emphasis on spirituality, meditation and
  work-life balance

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Development of talent (2/3)

• Meet the needs of high performers who crave for
• Challenging assignments
• Higher responsibility
• Exposure to multiple assignments
• Scope of leadership and authority
• Consideration for personal problems
• These needs are met through
• Well designed career path
• Multi regional/multi functional work exposure
• Business unit leadership position at early stage
  of career
• Performance counseling
• Mutual discussion on career planning
• Career tracking for high performers
• Two way communication in performance appraisal
  system to understand individual aptitude and
  problems

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Development of talent (3/3)

• Inclusion of high performing officers in
  cross-functional project groups
• Inclusion of high performing officers in various
  strategy meets, work groups and brain storming
  sessions along with senior level managers
• Tenure posting in certain critical assignments in
  strategic areas
• Career path a combination of staff posting and
  line posting

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Evaluation of talent





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Action plan (1/3)





Elements of performance management
Setting KPIs
Setting targets
Evaluating performance
Rewards/ consequence management

• Critical business levers identified
• Quantitative and qualitative performance measures
  set
• Accountability decided

• Performance goals set upfront
• Stretch targets set with externalities factored in

• Performance measured period-ically and root
  causes identified
• Development needs identified and feedback
  provided
• Employee potential measured

• Strong linkage ensured between performance and
  rewards
• Strong performance culture created throughout
  organisation
• Appropriate people positioned for key jobs

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Action plan (2/3)






KRAs and KPIs are linked to value drivers of the
company


KPIs are cascaded top-down

• Each position has a balanced set of KRAs and KPIs
• Four to six KRAs
• Mix of financial operational and strategic
  business factors

Guiding principles for setting KRAs and KPIs

• The number of KPIs are limited to ensure focus
• 4-6 KPIs per KRA
• KPIs are measurable and time bound

KPIs are normally exclusive to a job
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Action plan (3/3)





Performance rewards management

Tracking of high performers
Achievement motivation
Career path design
Performance manage-ment to maintain talent pool
at peak at all times
Counseling
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Learning





Wide exposure to training and develop-ment
accelerated promotions and rewards for higher
educational qualifications

Encouragement of creativity and innovation-
suggestions schemes where rewards are directly
proportional to savings or benefits achieved
Creating a learning organisation
Cumulative learning initiatives such as sharing
of procedures/policies, question bank on
operating practices, widely published DOs and
DONTs etc.
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Finally, motivation of talent is key and can be
done through four change levers
Role-modeling
Fostering under-standing and conviction
"I see superiors, peers and subordinates behaving
in the new way"
"I know what is expected of me I agree with it,
and it is meaningful"
Motivation, behavior and mindset shifts
Reinforcing with formal mechanisms
Developing talent and skills
"The structures, processes and systems reinforce
the change in behavior I am being asked to make"
"I have the skills and competencies to behave in
the new way"
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IndianOil has taken steps for improving
motivation in all four areas
Steps IOC has taken

Role modeling
Leadership actions and interactions to motivate
provide role models for employees

Fostering under-standing conviction
Clear set of deliverables in terms of KRAs, KPIs.
In addition, MoUs signed by key employees

Developing talent and skills
Significant efforts towards training and
development

Reinforcing with formal mechanisms
Well defined performance management system
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Conclusion The facets of talent management
Planning for and absorbing the right talent
Empowerment and effective performance management
Value addition forpreparing future leaders
Right talent in the right job
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