Net Impact luncheon talk 18 Jun 2015 by Dr. Luis Danai Kristhanin

2. CEO Challenge
Source: www.conference-board.org
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3. Regional Views
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4. 44

5. Introduction
“Over their entire tenures, CEOs appointed from
the inside tend to outperform outsiders“
(Booz Allen Hamilton Consulting)
“ Every company has a succession planning
document. The question you have to ask is
Will it be operational?“
(Prof. David Larcker, Stanford University)
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6. Why people risk is important?
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Human capital risk is seen to be one of the most significant
threat to global business operations1.
“The ability to understand risk is one of the fundamental drivers behind our global
economy. Without it, we can’t make the investments, and we can’t take the initiatives
required to succeed.”
Greg Case
President & CEO, Aon Corporation
1 Best Practices in Risk Management: A Function Comes of Age: A report from the Economist Unit Sponsored by ACE, IBM and KPMG,
The Economist Intelligence Unit, 2007, 21 pages
 As companies become more global,
there is an increasing need for
understanding risk profiles for talent.
 Talent pools vary across locations and
companies have to adjust their talent
strategies to address the risks
associated with talent in those locations.

7. People Risks in APAC
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2009 2011 2013
1 Economic slowdown Economic slowdown
Economic slowdown / slow
recovery
2 Regulatory / legislative changes Regulatory / legislative changes Regulatory / legislative changes
3 Business interruption Increasing competition Increasing competition
4 Increasing competition Damage to reputation / brand Damage to reputation / brand
5 Commodity price risk Business interruption
Failure to attract or retain top
talent
6 Damage to reputation
Failure to innovate /
meet customer needs
Failure to innovate /
meet customer needs
7 Cash flow / liquidity risk
Failure to attract or retain top
talent
Business interruption
8
Distribution or supply chain
failure
Commodity price risk Commodity price risk
9 Third-party liability
Technology failure /
system failure
Cash flow / liquidity risk
10
Failure to attract or retain top
talent
Cash flow / liquidity risk Political risk / uncertainties10
5
7
Source: Aon Hewitt 2014

8. Top 5 People Risk Issues in APAC
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Talent Retention1
Talent Development2
Leadership Skill & Management Capability3
Leadership Shortage : Succession Plan4
Ability to Attract Talent / Poor Talent Selection5
Source: Aon Hewitt 2014

9. People Risk in Thailand
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Participant Average
Source: Aon Hewitt Best Employers – Thailand 2015 (CEO Questionnaire)
54%
42%
37%
25%
4%
25%
35%
46% 48%
0%
20%
40%
60%
80%
100%
Critical
skills
shortage
Inability
to attract
talent
Poor availability
and selection of
talent in external
labor market
Inability
to
retain
employees
Poor labor
relations
Low
employee
productivity
Inadequate
capability
of current
leaders
Inadequate
leadership
pipeline
Rising
salaries
Percentage of organizations
The people risks, as identified by CEOs in Thailand, are shown as follow:

10. What are the Risks related to People?
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1. Workforce Planning
2. Talent Acquisition
3. Employment Practices
4. Talent Management
5. Leadership
6. Exiting
• Talent shortages
• Skills shortages
• Ability to attract talent
• Poor talent selection
• Compliance
• Labor relations
• Rewards
• Safety, health & absence
• Talent development
• Productivity
• Talent retention
• Leadership shortage
• Leadership skill & Management
capacity
• Aging workforce
• Compliance
• Attrition
Impact on:
• Revenue
• Expenses
• Execution of
strategy
Top People Challenges in
Thailand for the next
three years
Source: Aon Hewitt 2014

11. Key Challenges in Today’s Market
Talent challengesBusiness challenges
Insufficient numbers of
ready-now leaders
Change in demand for talent and
skills required for success
Pace of talent development does
not match with speed of growth
initiatives
Business growth
Cost pressures
Product/Service innovation
Source: Aon Hewitt Top Companies For Leaders 2014

12. Laying the Foundation for Success:
What Companies Must Get Right
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Seamless
Execution
Leadership
Strategy &
Accountability
Attracting
Leaders
Leadership
Assessment
Leadership
Development
High
Potentials
Succession
Management
Metrics
Programs are strategically tied to the goals, values and
culture of the organization. Leaders demonstrate and
are held accountable for strategically-driven
behaviors in the right way.
Leaders are engaged and
values-driven. Companies utilize
a consistent and rigorous
approach to selection and
onboarding
Valid and objective feedback
assessments to understand
capabilities, guide
development, inform
succession plans
Provide accelerated development
through meaningful, experiential,
relational, and traditional processes
Conduct robust talent reviews to consistently
define, identify, calibrate and develop
high-potential and critical talent
Maintain a deep and robust
talent pipeline via
succession management
Utilize metrics to track progress,
evaluate effectiveness and
drive desired results
Source: Aon Hewitt Top Companies For Leaders 2014

13. What is the DNA of top companies?
1. When it comes to building leaders, top companies strongly
endorse a full spectrum approach to assessing the whole
leader (experiences, competencies, values, organization fit)
early in their career to understand the unique needs of their
talent pipeline that fuels the right development solutions to
move people forward faster.
2. Top companies have self-aware leaders who exhibit
tremendous understanding of their personal strengths as
well as blind spot and use this information to become more
effective leaders of others.
3. Top companies build resilience in their leaders through
inclusive cultures where multiple perspective and ideas are
expected to help the organization meet fast changing
business challenges.
4. Top companies are intentional about identifying and
building engaging leaders who are stabilizers,
ambidextrous, and connected to people and events
inside/outside their organization.
5. Top companies are focused on the building sustainable
programs and practices that strategically drive business
outcomes.
In the face of today’s volatile, uncertain, complex and ambiguous (VUCA) business environment, top
companies have the edge to successfully support leadership and talent growth that result in stronger
organizational performance—via their fundamental cadence:
Source: Aon Hewitt Top Companies For Leaders 2014
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14. Assessment
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Customized
Strategic
Assessment
Source: Aon Hewitt Top Companies For Leaders 2014

15. Self-Awareness
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Self awareness
as integral
building
an
block
leadership
of
Source: Aon Hewitt Top Companies For Leaders 2014

16. Self-awareness is knowledge
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Knowing Self
Knowing How To
others
(means)
…
Lead
Influence
Motivate
Inspire
Impact
Strengths
Blind spots
Source: Aon Hewitt Top Companies For Leaders 2014

17. Resilience:
Getting Comfortable with the Uncomfortable
Stretch people
outside of their
comfort zones…
…but be there
to catch them,
coach them,
watch them grow
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Source: Aon Hewitt Top Companies For Leaders 2014

18. Engaging Leadership
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Purpose
Commitment
Authenticity
DNADNA
The storytellers
and stewards of the
company vision, mission,
values, and culture
Understand that
engaging others is core
to their role in the
organization
Stabilizers, ambidextrous,
humble, and connected to the
people and events that
surrounding their organization
DNA of Engaging Leader
Source: Aon Hewitt Top Companies For Leaders 2014

19. Sustainability
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Personal & Organizational Growth
Alignment
Future-
orientation
Accountability
Integration
Culture, Vision,
Mission, Values
Source: Aon Hewitt Top Companies For Leaders 2014

20. Great Organizational Performance
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Getting ahead of the pack
Challenge
Create
Build
Core practices and
assumptions to
respond to rapidly
changing market
conditions Accountability to
generate sustained
change
A distinctive culture
through leaders at
every level
Source: Aon Hewitt Top Companies For Leaders 2014