05/03/2023

Talent Acquisition’s Role in Workforce PlanningDavid Dart

Optimization Can’t Happen Without the Basics

Organizational CapabilityTactical Strategic

SYSTEMSPROCESSRESOURCESMETRICS

BASICS

• HIRING PROJECTIONS• INNOVATION• MULTI-SITE

CAPABILITIES• PORTFOLIO STRATEGY• SERVICE LEVEL

AGREEMENTS• AREA METRICS• COORDINATED

ASSIMILATION• COORDINATED

TRAINING (Domestic)

OPERATIONAL

• WORKFORCE PLANNING• CONTINUOUS IMPROVEMENT• LEADERSHIP DEVELOPMENT• COMPETENCY MODELS• TOTAL REWARDS• ENTERPRISE-WIDE

CAPABILITIES/STRATEGY• GLOBAL METRICS• DIVERSITY & INCLUSION• COMPETITIVE INTELLIGENCE• OUTSOURCING COUNCIL (Best in Class/Global)

OPTIMIZATION

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Three Strategies Needed for Business SuccessMark Huselid – The Workforce Scorecard

Business Strategy

The Growth

Workforce Strategy

The Capabilities

HR StrategyThe System

DIFFERENTIATIONOutside Inside

A Winning Culture enables us to successfully execute our strategy

Strategy Defined Adapted from Playing to Win: How Strategy Really Works by AG Lafley

How we work together

Key skills & abilities required to make it happen

Key elements of execution that unlock value

The choices we make to deliver value

Setting the course for the organization

V I S I O N

W H E R E W E P L AY

H O W W E W I N

K E Y C A PA B I L I T I E S

O P E R AT I N G M O D E L

5

► An operating model is where and how the most critical work is done

► In other words, it’s the Who, What, When, and How work gets done

► It is not an organizational structure, although the org structure is an outcome of the operating model

What is an operating model?

Operating Model includes more than just “boxes and lines”

Celanese Operating Model 2.0

Structure

Capabilities

Resource alignment

Decision-making forums

Processes

Accountabilities

• How will cross-enterprise management processes work?

• What are our company norms for how people interact? What are expectations for priority behaviors?

• Is the right talent in place for the new structure?

• What are the implications of future operating model for capability enablers – People, Process, Technology?

• What is the right resource level?

• How should resource additions be phased?

• Does the new structure achieve spans/layers targets?

• What are the key executive forums’ objectives, composition and cadence to govern business?

• What is our predominant ‘decision style’?

• What are the roles and accountabilities and KPIs of each unit?

• What is the RACI for critical decisions (especially cross-functional)?

• What are the main operating units and P&Ls? • What ‘horizontal’ entities and coordinating

mechanisms are required? • How will the center add value?

Four steps to deploying an operating model:

► Identify the key decisions that create value and the processes in which they reside (the “What”)

► Clarify the roles and interfaces across the business (the “Who”)

► Define the decision rights (“Who, What, and When”)

► Create the forums to make those decisions (the “How”)

Clearly defined operating models enable speedthrough systematic decision making

A little more on operating model

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Celanese’s Organization and Culture is Evolving…

2012

20132014

Resetting Expectations

Delivering & Building Trust

Performance & Preparing for the Future

• Established mission, vision, and refreshed values

• Core changes to how Celanese operated

• Strategy 1.0 / 5 Big Rocks

• Missed financial measures

• Responding to high attrition

• Focus on people

• Performance management and compensation changes

• Communicated broadly

• Focused on Execution, Innovation, Collaboration, and Customer Excellence

• Stabilized organization

• Focus on cost / investments in the right areas

• Focus on development in key areas: manufacturing, sales, and technology

• Unifying CE brand

• Top business performance

• Celanese 2.0

• Focus on creating sustainable profitable growth

• Focus on talent – key roles, specific development, succession, and coaching

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…and Our Strategy Work Confirmed Many Strengths as well as Many Opportunities

Strengths Challenges

Focus Our technology and products are strong and often preferred by customers…

…but we generate 3,500+ innovation ideas, 50% in new spaces instead of translating existing applications

Customer Net promoter score (NPS) highest amongst all competitors in Auto segment (+23 vs. -24)…

…yet our account managers only get 35% of their time in front of the customer

Commerce Acetyl Chemistry drove results through asset rationalization, and chain integration

…there are opportunities to value-price in EM due to pricing remaining flat

Supply Chain Perfect order performance improved to 85%+... …but we firefight 50% of orders to achieve that performance

Growth While we have grown both bottom and top line……growth in Acetyl Chemistry has fallen below GDP growth rate and EM growth is behind Vision 2016 targets

M&A Balance sheet in a much better position today to pursue M&A opportunities to achieve EBIT targets…

…we have little recent M&A deal and integration experience, a critical capability to achieve success

Culture Culture is evolving to one with balanced values, customer focus, and delivery…

…but a lack of clarity on roles and responsibilities a big challenge, and we must develop key capabilities to succeed

How we work together

Key skills & abilities required to make it happen

Key elements of execution that unlock value

A Winning Culture enables us to successfully execute our strategy

The choices we make to deliver value Strategy 2.0 Development Clear direction on which markets we will target

and how we will create value Business will continue to refine the strategy

Vision 2016 Created longer term vision in 2012 Set goals, snagged low hanging fruit

Strategy Defined Adapted from Playing to Win: How Strategy Really Works by AG Lafley

Setting the course for the organization

C E L A N E S E V I S I O N

W H E R E W E P L AY

H O W W E W I N

K E Y C A PA B I L I T I E S

O P E R AT I N G M O D E L

Strategy 2.0 Development Ensuring what needs to get done actually gets

done through human systems While the strategy continues to develop,

provide a nimble operating model to adjust to market direction

Skills and abilities required to achieve imperatives

Critical capabilities required to substantially push profitability► Commerce (e.g., pricing, negotiation, contracting)

► Prioritization (e.g., product portfolio management, time with customer)

► Productivity (continuous improvement mindset across all areas)

Key capabilities that drive value must be ingrained in the culture

C E L A N E S E O P E R AT I N G M O D E L R E D E S I G N

Two value equations

Materials Acetyl Chemistry

Region (POC, Asia)

Function alignment

Technology & Innovation Sales Supply Chain Role of

center

Our operating model

Four steps to deploying an operating model:

► Identify the key decisions that create value and the processes in which they reside (the “What”)

► Clarify the roles and interfaces across the business (the “Who”)

► Define the decision rights (“Who, What, and When”)

► Create the forums to make those decisions (the “How”)

Clearly defined operating models enable speedthrough systematic decision making

Reminder: Deploying an Operating Model

SIPOC will be evaluated for each critical cross-functional process

S I P O CSuppliersThe provider of inputs to your

process

InputsMaterials,

resources or data required

to execute your process

ProcessA structured set of

activities that transform a set of

inputs into specified value to customers and stakeholders

OutputsThe products

or services that result from the

process

CustomersThe recipient of

the process output

Start End

5-7 major steps

As part of the process, we will need to set up decision-making forums

Example Success (Role) Profile: Portfolio Development and Pipeline Vice President

• Create and implement process to cut, prioritize and focus pipeline projects including facilitating project prioritization, resource allocation and project approval decision-making

• Develop tools, reporting/dashboards to provide portfolio visibility to key relationship partners

• Create a roadmap to provide forward looking guidance on future launches

• Focal point and leader of overall EM pipeline: platform programs, new applications, translations, raw materials swaps, new formulations

• Provide oversight for the portfolio review process and communicate back to all stakeholders on progress of product launches, recommended additions and cut programs

• Work closely with Sales, Marketing, the P&L leader and Technology & Innovation team members to provide input and assist with prioritization of customer-driven product and application solutions aligned with Celanese, segment, and customer strategies

• Pushes for launches to meet a quarterly expectation for an internal and external view

• Drive the EM pipeline and platform through strategic planning, analytics, rationalization, prioritization and launch: • Work with key stakeholders to

provide a holistic view of current launches and timeframe

• Provide oversight for the portfolio review process

• Ensure resources are utilized effectively and efficiently to drive increased profitability

• Lead the overall EM pipeline

Purpose Key Activities

Key Abilities• Ability to successfully lead across

organizational boundaries, including strong relationship management skills

• Has courage to lean in and focus on near term value and sacrifice programs that don’t deliver according to business strategy

• Key Competencies: Managerial Courage, Motivating Others, Negotiating, Process Management, Developing Direct Reports and Others

Outputs• Delivers $50MM annually in Variable

Margin from new launches

Key Relationships

PortfolioDevelopment

& PipelineDirector

Sales/SegmentsManufacturing

P&L Leaders/Marketing

Technology & Innovation

KPIs• # of commercialized projects in

aggregate and vs. plan• Volume, rev., & margin vs. plan• Innovation spend• Innovation returns• Pipeline size and quality

Key Decision Authorities / Responsibilities

Decide to initiate projects (Gate 0) A

Decide Program Mgr. staffing R

Decide go/no go for projects at Gate 1,2 etc A

Decide to launch projects A

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RACI is a critical tool for clarifying decision rights

Responsible

R

Consulted

Consulted

Consulted

IA

Accountable

CInformed

R

A

C

I

Responsible for activity or process• Directly executing or overseeing process• Responsible for obtaining approval,

involving and obtaining support from “consulted” roles, and inform all “informed”

Consulted for information or expertise during execution• Must be consulted before decision is made• Have an Advisor role, i.e. is required to provide

input and expertise• Supports the responsible in executing the

activity when needed• Do not hold veto right over the decision, but is

informed of outcomes

Accountable / Approval authority for activity or process• Provide final sign-off before action is taken• Holds accountability for the overall decision

made

Informed of the process and outcome• Must be informed after decision is made• Requires transparency into the process and

outcomes in order to be effective

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Clarifying decision rights and accountabilities

MFG Leader

Lead Planner

Participants

Objectives Inputs

Outputs / Decisions / Actions

Project prioritization meeting “4-blocker” Frequency: Daily

CTO

EM GM

Selected P&L Leaders

• Review status of closes planned for the week

• Close unresolved issues from previous daily meeting

• Evaluate new projects added since previous daily meeting

• Provide a brief open forum to discuss any outstanding issues

• Status updates- On track vs. off track- PO attainment

• Project proposal- Project value (Volume, Sales Price, Manufacturing Cost,

Development Cost)- Timing- Key issues – technical, IP, quality, etc.- Strategic rationale (alternatives)- Business/platform impact- Likelihood of commercial success (e.g. customer commitment)

• Prioritized projects for development identified

• Agreed on development plan for prioritized projects- Resources needed (technical and commercial)- Path to market

• Resource allocations/reallocations (as needed)

• Identify open issues to be discussed at the next meeting and actions to close

PortfolioManager

Commercial Leader

What Is HR’s Purpose?

Every person and organization on the planet knows what they do. Some know how they do

it…but very few know WHY they do what they do.

WHY does your organization exist?

WHY should anyone care?Simon SinekLeadership ExpertAuthor - Start With Why

The “WHY” Can Make Good Organizations Great

HOWWHATWHY

Execution

Bringing itto Life

Equity

Our Promise to Our Clients

Purpose

Why HR Exists

The “WHY” Can Make Good Organizations Great

HOWWHATWHY

Execution

Simple, elegant process

Best place to workCollaboration & accountability

Equity

A purpose driven, engaged

organization

Purpose

To ensure the vision and strategy of the

business is executed

The Strategic HR Pillars

►Smart Growth►Full Talent Pipeline►Employee Mobilization►Purpose Driven Culture

Confidential 23

The Strategic HR Pillars

• Managers utilize process improvement tools & project management

• Decision Support: Productivity metrics & optimal resources• Disciplined growth - Assess and plan required demand based on

business needs• Build capabilities in the appropriate timeframe to meet need• Factor globalization & functional interdependencies into planning

‘Smart’ Growth

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The Strategic HR Pillars

• Real workforce planning; thoughtful about internal/external mix • Effective assimilation & integration of staff • Focus on both hiring and development • Measuring quality of our talent• Integrated strategies and processes for acquiring, developing,

and placing talent

Full Talent Pipeline

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The Strategic HR Pillars

• Significant performance differentiation• Total Rewards strategy• Leader led alignment and focused action • Career value proposition is clear• Clear alignment between strategy and

functional/individual goals

EmployeeMobilization

27

The Strategic HR Pillars

• All associates know why the organization exists• Newcomers/ tenured staff establish desired culture together • Debate, shape and articulate desired culture • Assess/evaluate current culture and confront discrepancies• Develop and implement plan/actions to close gaps

Purpose DrivenCulture

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Talent Acquisition Case Study #1

► Identify key capabilities (Commerce, Prioritization, Productivity)► Operating model changes, headwinds driving turnover

‒ Some opt out

‒ Triple whammy in Germany

‒ Experience gap in China

► Talent Acquisition team as strategic workforce planning leader‒ Hiring ahead of anticipated attrition

‒ Creating region specific hiring models

‒ Capability assessment design and execution

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Hiring/Capability AssessmentKey Performance Indicators

Revenue trend: 1 2 3 Forecast accuracy: 1 2 3 Projects launched: 1 2 3

Account Management

Rate this Account Manager’s ability to execute each phase of the sales cycle described below.

Plan Discover Engage Close

1 2 3 1 2 3 1 2 3 1 2 3 Develops account plans for

all assigned customers Gathers information about

customer/ company background

Differentiates value proposition

Understands internal decision making channels

Works to understand customer/business needs

Involves customer in conversation

Identifies “pain points” and responds to concerns

Quantifies impact of customers problems

Creates interest to continue dialogue

Articulates value proposition of product/ application

Involves appropriate stakeholders

Summarizes needs and Celanese fit

Differentiates and maximizes solution value

Gains agreement to move conversation forward

Gains agreement that solution meets customer’s needs

Asks the customer for the business

Finalizes steps to close and contract

Protects value during the contracting process

Obtains signed contract

Account Relationships

Choose one description of how this Account Manager is seen by his or her top accounts.

Partner Advisor Problem Solver Credible Source Vendor

Shared risk, shared

reward business terms

High level of data, systems and/or operational interdependence

Open access to executive contacts

AM and customer co-develop strategic plans together

Value-based business terms and conditions

Established track record for delivering strategic solutions

Access to C-Level and/or Senior VP executive contacts

Customer shares strategic plans and direction

Innovative and creative solution emphasis

Demonstrated ability to solve operational problems

Access to VP and Director level contacts

Customer shares information about company initiatives

Focus on operational solution value

Mostly Operational Manager contacts

Customer shares info on departmental projects

Price and cost-based business terms

Focus on fit within specific identified needs

Mostly Procurement department contacts

Customer provides RFP/RFI/RFQ

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Talent Acquisition Case Study #2

► Talent acquisition at Amgen is a competitive advantage

► New therapeutic area for Amgen in cardiology

► Huge clinical trial demand required MD’s across the globe

► Business assumption was “go get them!”

► Not so fast, my friend…

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Alternative strategy deployed

► Talent acquisition team scanned the market, realized demand outstripped global supply‒ Utilized industry contacts, agencies, and sourcing techniques to

ascertain global supply

‒ Directed business line on exploring alternative sourcing models

► Market knowledge led to alternatives‒ ER docs have cardiology expertise, time

‒ Moonlighting retirees were highly effective

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Summary► HR is responsible to ensure strategies are actually executed

through human systems► Three strategies needed for business success: Business,

Workforce, HR► Setting a strategy is easy – mobilizing an organization behind it is

the hard part► An operating model is not an org structure► Workforce planning is critical to creating capability and capturing

value► Talent acquisition is on the front line of workforce planning► Don’t forget – culture ties it all together!