Talent Management in Turbulent Times : Internal Talent Identification & Strategic Hiring

1. PRESENTED BY:
MR. SIDHARATH TULI
VICE PRESIDENT & HEAD – L&T HYDROCARBON
Talent Management in
Turbulent Times :
Internal
Talent Identification
&
Strategic Hiring
7/30/2014 1

2. Talent Management in
Turbulent Times :
Internal Talent
Identification
&
Strategic Hiring
7/30/2014 2

3. 7/30/2014 3

4. THE VUCA WORLD
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5. GLOBAL OIL AND GAS SCENARIO: BARRIERS
North America Europe Asia-Pacific
Skill shortages
and/or ageing
workforce
Skill shortages
and/or ageing
workforce
Increasing overall
operating costs
Growing regulatory
burden
Increasing overall
operating costs
Skill shortages
and/or ageing
workforce
Increasing overall
operating costs
Tougher
competition from
international rivals
Tougher
competition from
international rivals
36%
21%
15%
14%
14%
Scarcest Skills for 2014
Project Managers Offshore related engineers
Safety & risk engineers Onshore related engineers
Marine related specialists
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6. L&T : VISION – ORGANIZATION STRATEGY – TALENT MANAGEMENT
 Geographical Expansion -
grow international business in
Asia pacific, America, GCC, CIS &
Africa
 New Business Area - One
step adjacencies - FSBU, Subsea,
LNG, Modular Plants
 Cost Reduction by 10-15%
- Across Value Chain to improve
competitiveness
 Partnership – Pursued
Targeted partnerships to focus
on large value prospects
 International HSE Standards
 Building International
Capability
 Leadership Development
for business growth
 Strategic Talent
Acquisition
 Global Talent Mobility
 Succession Planning for
leadership pipeline
ORGANIZATIONSTRATEGY
TALENTMANAGEMENT
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7. TALENT MANAGEMENT AT LTHE
STRATEGIC HIRING INTERNAL TALENT
DEVELOPMENT
OUTSOURCE/
SHORT TERM CONTRACT
 Lack of Internal Talent
 Benchmarking with
competitors
 Multicultural Talent Pool
 New skills / Geographies/
Business
 Building Leadership Pipeline
 Succession Planning
 Leveraging Known strengths
 Mapping the aspirations of
the Internal Talent
 Non critical skills
 Outsource Niche skills
 Innovative recruitment
strategy like fix term contract
employment for a project
duration
 Transactional Jobs7/30/2014 7

8. CRITICAL ROLES
Transactional Roles
Business Critical
Strategic Roles
Operational Roles
Business Critical
Roles
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9. STRATEGIC HIRING
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10. CASE STUDY : 1
Selection of the
eligible and suitable
candidate
Competencies /
Behavior required for
key positions
Mapping External
Talent
0
2
4
6
8
Good Domain
Knowledge (Upstream)
Good Domain
Knowledge (HMD)
Good Domain
Knowledge (HCP)
Execution (Project
management)
Business Building
Leadership (Internal
Team Handling)
Leadership (External
Stakeholder Handling)
Commercial Acumen
Strategic Thinking
International
Customers/ Market
Domestic Customers/
Market
Size of P&L Handled
Culture Fit
Candidate A Candidate B
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11. CASE STUDY : 2
Client :
International
Oil Company
Project: XX
Value: 800
MUSD
Job Title: Project
Director
Benchmark
Internal
Candidate
External
Candidate
Executed Projects of at up to 1BUSD √ √
Overall experience of 25 yrs √ √
Middle East Experience (Kuwait) √ √
(Middle East)
√
(Kuwait)
International Project Management / Oil &
Gas expertise √ √
Experience in Hydrocarbon Sector √ √ √
Leadership Capability √ √ √
Managing Multicultural Diversity √ √
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12. DEVELOPING INTERNAL TALENT
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13. POTENTIAL vs PERFORMANCE
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14. DOMAINS OF POTENTIAL

15. TRUE/ FALSE
All high performers are high potentials
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16. TRUE/ FALSE
Potential cannot be assessed accurately
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17. TRUE/ FALSE
Assessing potential is a one time activity
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18. TRUE/ FALSE
Immediate Managers can assess potential
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19. 7/30/2014 19
BEAUTY QUEEN, LOADERS TURN PILOTS AT AIRASIA

20. LEADERSHIP TRANSITIONS
INDIVIDUAL CONTIBUTOR
TEAM LEADER
OPERATIONAL
STRATEGIC
STRATEGIC
OPERATIONAL
TEAM LEADER
INDIVIDUAL CONTIBUTOR
BUSINESS DRIVERS
Transitional Competencies
• Interpersonal Skills,
Customer focus, Planning &
Organizing, Decision Making,
Drive, Creativity, Business
Communication
Transitional Competencies
• Team Leadership,
Networking, Resource
Management, Motivating &
empowering employees,
Entrepreneurship, Influencing
Transitional Competencies
• Strategic Thinking, Change
Management, Passion for
results, Conflict Management,
Customer Partnership
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21. BUILDING LEADERSHIP PIPELINE
LDP GLDP TLTGC
GLOBAL
CEO
FLPMEP
Focuses on young
potential Leaders of
L&T
Focuses on a
distinct group of
high performers for
succession to critical
positions
Focuses on
Entrepreneurial,
Leadership, Strategic HR
Management, Corporate
Strategy & Finance for
Value Creation from the
Global Perspective
Conceptualized in
line with L&T's
vision for an
increased focus and
foray into the global
markets
Provides a platform
to discuss the
challenges L&T
would face in an
increasingly global
environment
Assessment /
Development Centre
(Customized For Each
Band)
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22. 7 STEP LEADERSHIP PIPELINE
First-Level
Leadership
Program/
MEP with
IIM-A
Leadership
Development
Program
(LDP)
Global
Leadership
Development
Program
(GLDP) – Ross
School of
Business,
Michigan
Transforming
L&T into a
Global
Corporation -
Program in
association
with INSEAD
Future Top
Management
Leadership
Candidates
sent for
International
Programmes
to :
•Harvard
Bus. School
•Wharton
•LBS
•INSEAD
Building
Global
CEOs
(program
with
Harvard
Business
School)
Mentoring
by the
Board of
Directors
STEP 1
STEP 2
STEP 3
STEP 4
STEP 5
STEP 6
STEP 7
Age up to 35
years
Age upto 40
years
Age upto 45
years
Age upto 50
years
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23. 10-20-70 PRINCIPLE
MENTORING
FORUMS
TALENT
MOBILITY
BEHAVIORAL
EXPERTS
RE-
DEPLOYMENT
WORKSHOPS
GUIDE
IDP
BUSINESS CRITICAL ROLES
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24. FIRST-LEVEL LEADERSHIP PROGRAM
KICK OFF
SESSION
+
TEAM
BUILDING
LEAD SELF
LEAD &
FOLLOW
OTHERS
LEAD
LAKSHYA
LEAD
INTERNATIO-
NALIZATION
360 °FB + Case Study/
Assessment Reports
Integrated Session with the
HR Facilitators
IDP /ALP Formulation
Session with BE
Review -IS/NS/ HR
Online
Modules
Group
Mentoring
360 °FB
Session with BE
Final Review with IS/DH/HR
Learning Café (End of Forum 4)
Career Planning Exercise
Role Clarity Exercise
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25. INSTITUTIONS THAT HARVEST CAPABILITIES
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26. …
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27. AND THE BEST TEAM WINS!
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28. THANK YOU
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29. GLOBAL OIL AND GAS SCENARIO: OPPORTUNITIES
Opportunity ranking 2013 2015
Rising emerging market demand 1 1
Investing in innovation and R&D 2 2
Frontier acreage 3 3
Focused recruitment, training
and retention programs
4 4
Safety and risk management used
as enabling partner
5 5
New infrastructure to gain access
to, or to connect, resources and
markets
6 7
New or expanded markets for
natural gas
7 6
Acquisitions or alliances to gain
capabilities or gain access to
resources and markets
8 8
Additional Corporate Social
Responsibility
9 9
Strategic divestitures 10 10 Ernst& Young- “Business Pulse Exploring dual perspectives on the top 10 risks and opportunities in 2013 and
beyond”
7/30/2014 29

30. GLOBAL OIL AND GAS SCENARIO: RISKS
Risk Ranking 2013 2015
The risk of HSE event and in
ensuring regulatory compliance
1 1
Price volatility 2 2
Access to reserves or markets 3 3
Cost escalation and inflation 4 6
Uncertainty in energy policy 5 5
Worsening fiscal terms 6 4
Human Capital Deficit 7 7
Competition from new
technologies and sources
8 8
IT security 9 10
Increasing project scale and
complexity
10 9
Ernst& Young- “Business Pulse Exploring dual perspectives on the top 10 risks and opportunities in 2013 and
beyond”
7/30/2014 30

31. INDIAN OIL AND GAS SCENARIO: CHALLENGES
• Government regulation
• Ensuring sustained oil and gas supplies amidst volatile international prices
• Demand management of petroleum products and gas
• To sustain as a net exporter of petroleum products
• Rational pricing in view of uncontrollable global prices
• Creation of market competition in distribution and retail business
• Improving the administration of subsidies in kerosene, LPG, petrol & diesel
• Improvement in energy efficiency and conservation and environmental management
• Absence of statutory framework in the upstream industry
• Transnational gas pipelines facing uncertainty
• The oil and gas industry in India currently faces talent shortage7/30/2014 31

32. INDIAN OIL AND GAS SCENARIO
Power
31%
telecom
25%Roads and
Bridges
12%
Irrigation
10%
Railways
7%
Oil and Gas
6%
Water supply
4% airports
2%
ports
2%
storage
1%
Sectoral Investment Planned in 12th Five-Year Plan
1025 US$ Bn
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33. CRITICAL CAREER PROGRESSION
Each
Transition
requires new
SKILLS
requirements,
change in
MINDSET
and new
WORK VALUES
PROMOTION
INTERVIEWS
for high
potentials to
decide on the
individual
career path
across the
organization
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34. KEY TAKEAWAYS
• Transformational Risk/ cultural fit for new hires
• Transitional Risk during Role Change
• Approach : Proactive vs. Reactive
• Internal Dynamics of the Organization
• Building a culture of internal mobility
• Knowledge transfer from Key Lateral Recruits
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