Group Talent Management November 2011

The Importance of Commitment

From Danish liner to global conglomerate

1904: Company established with one freighter

1928: First tanker added to the fleet

1959: Lind Shipyard opened

1964: Dansk Supermarked established

1967: Maersk Supply Service established

1972: Maersk Contractors (now: Maersk Drilling) established

1972: Maersk Oil produces first oil in the North Sea

1975: First container vessel added to the fleet

1977: Mercantile (now: Damco) established

1994: Maersk Oil starts oil production in Qatar

2001: APM Terminals established

2008: New global oil strategy launched

Group Overview
Container activities Terminal activities Oil & Gas activities Tankers, offshore and other shipping activities Retail activity Other businesses

Fleet and other assets

1,400 ships

60 container terminals

115 platforms and rigs

900 offices

1,100 retail activity

+ 3 million containers

The Executive Board

Nils S. Andersen Group CEO

Kim Fejfer CEO of APM Terminals

Claus Hemmingsen CEO of Maersk Drilling and Maersk Supply Service

Eivind Kolding CEO of Maersk Line

Sren Skou CEO of Maersk Tankers

Jakob Bo Thomasen CEO of Maersk Oil

Trond Westlie Group CFO

Our main purpose making the HR agenda strategic

What is required to do this? Business savvyness

Know the competition and the market

Be an intelligent strategic sparring partner

HR C-level HR Strategy HR Policy Drafting

Assume equal responsibility for the business goals and targets

Run your department like the business

HR Administration

The items we consider to deliver stronger value to the business

Know the market place, customer relations, production capability Create a strategic culture and mindset

Capability Creation

Leverage Synergy

Reframe Strategy
Contribute with complex strategic ideas

Encourage Creativity
Proactive change management

Our case the People Strategy Session

The People Strategy SessionBusiness Functional creates an Unique ID of the Area Ref overview of the strength Master organization compared data the strategy Data to Master data Master The process and results are owned by Group HR, but we rely on local HR for conducting the session All our Business Units are currently preparing for the 2012 PSS sessions Approximately 1000 persons are currently being assessed across the A.P. Moller Maersk Group
ABC067 ABC097 ABC027 ABC007 ABC012 ABC021 ABC086 ABC087 ABC030 ABC062 ABC023 ABC026 ABC029 ABC024 ABC089 ABC031 ABC091 ABC095 ABC096 ABC098 ABC099 ABC040 ABC028 ABC022 ABC032 ABC025 ABC073 ABC033 ABC060 ABC020 Commercial Commercial Commercial Commercial Operations Finance Finance Operations Operations Finance Finance Operations Commercial Commercial Operations Operations Operations Operations Operations Commercial Finance Finance Commercial Finance Operations Commercial Finance Commercial Finance Finance

Position inventory
Position Definition Manually Added Data Sales - Construction Supplies Sales - Hazardous Fluids Business Development Sales - Refrigerated Goods HSSE FACT Financial Controlling Trucks - Hazardous Fluids Fleet Management Legal Finance West Administration Customer Service Communication Claims Maintenance Trucks - Livestock Trucks - Construction Supplies Purchasing BPO Accounting West Finance East Sales - Livestock Accounting East Trucks - Refrigerated Goods Marketing Payroll Mergers & Acquisitions Investments Buildings Investments Trucks Position Distribution Calculated data 1. 1. 1. 1. 1. 1. 1. 1. 1. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 3. 3. 3. Mission Critical Mission Critical Mission Critical Mission Critical Mission Critical Mission Critical Mission Critical Mission Critical Mission Critical Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Impactful Less Impactful Less Impactful Less Impactful People Distribution Calculated data 0,6 0,6 0,3 0,6 0,6 0,6 0,1 0,6 0,1 0,6 0,3 0,6 0,3 0,6 0,6 0,6 0,3 0,3 0,3 0,3 0,6 0,6 0,6 0,6 0,3 0,6 0,1 0,6 0,6 0,3

People inventory
Full Name (L, F M) Master data John Hinnant Walter Heffernan Wesley J. Pender Anton Moten Broderick Geise Al Boll Shera Yawn Stephania B. Hinojosa Kevin Trudell Markus R. Beehler Bruce Rawls Mariann Brink Lorretta A. Replogle Emmitt Thorp Terica K. Burkhardt Markus Guffy Trinidad A. Vidrine Veta L. Cottle Vito D. Rucker Wendell Lancaster Wilfredo Krupp Giovanni R. Pinheiro Deidra Golston Arthur Dameron Brooks Hixson Omar R. Fansler Nanette Thome Frederic J. Loudermilk Malcom M. Klassen Claude Vannorman Promotabi lity Potential Master data P1 P1 P2 P1 P1 P1 P0 P1 P0 P1 P2 P1 P2 P1 P1 P1 P2 P2 P2 P2 P1 P1 P1 P0 P1 N/A P0 P1 P1 P2

Other Factor
LI Flag Master Data 50000 57240 160000 69000 85500 98000 34911 119100 45746 60015 126131 142500 190000 145050 60070 147000 113800 90815 103177 98000 103500 69120 78916 200000 298800 140000 30000 185050 240000 180000 PI Flag Master Data AMD SIS AMD SOS SIP CLS CLD DTR AMC PER AMA AMD SOS SOS CLS PER CLD DTR SOS AMA AMC SIA AMP SCH AMP SIS SCH AMC SOS SIS

M r

The main result is an increased focus on developing the people side of the business and transparency of the talent pool

Defined by the impact the position has on achieving the strategy

Defined by the performance of the person

Our journey started in 2008 and after delivering the project, we now focus on keeping commitment and facilitation strong
Getting the organization onboard BU PSS 2009 BU PSS 2010 BU PSS 2011

Pilot to gain leadership commitment

2008
Design

2009
Executive PSS PSS WebEx PSS Training Follow-up

2010
PSS WebEx PSS Training Follow-up

2011+
PSS WebEx PSS Training Follow-up

Our case today: A new approach to project management and implementation

New HR concepts

Business value Simplicity Iterative Engaging

New HR concepts New HR concepts

CATCH!

New HR concepts New HR concepts

BEFORE

NOW

Two levers to achieve this aim

Creating commitment

Strong facilitation

IT IS ABOUT PEOPLE

WHY IS IT SO DIFFICULT TO CREATE COMMITMENT?

Your stakeholders human beings and act as such

Opinions change and new people come onboard There is no "ceteris paribus" The stakeholder map changes over time

YOU HAVE YOUR HANDS FULL ALREADY The project you are working on is taking up the majority of your resources for managing Team and allocated resources Deliverables and deadlines Daily fire fighting Your own time often you have other tasks than the project to attend to

IT IS NOT UP AND CLOSE UNTIL IT IS TOO LATE Our normal centre of attention is the daily activities Stakeholder will not reveal themselves before they are confronted with changes they do not like

COMMUNICATION Communication Plan

Purpose (Aw areness, Stakeholder Interest, Trial, Adoption) (Who) Message (What)

PLAN
Channel (how)
Presentation via conference call and discussion

Plan for handling stakeholders

When
Wednesday XX April 09

From who

Name Expected effect

Increased Name awareness. Ability to communicate to own org.

E-mail
Follow-up
Test message cascadingE-mail by phone with 1-2 employees

Country

Function

Primary Stakeholder Group

Which role does this person primarily have?

Title

Additional role
Does this person have other important roles?

SO WHAT DO YOU DO?

Awareness

Management Team in CH

Our project goals Project Owner

Country

Function

Title

Stakeholder identification
Motivations
Stakeholders ABOVE the Program / Project (e.g. Executive mgmt, steering group, Board etc.)

Barriers/ issues

Level of Influence High, Low Medium?

Current Attitude What attitude does this person currently have towards this project?

Desired attitude

Actions

Stakeholder Groups

IMPACT T BY PROJECT HIGH LOW

External stakeholders (e.g. press, unions, shareholders)

WITHIN The program / project (PMO, WGL, team members)

What issues or barriers does this person have in regards to this Non-affected internal project??

What motivates this person in this project?

What attitude are we aiming for this person to have?

What are the actions what we will take to ensure the desired attitude?

Address concerns

Involve extensively

IMPACT ASSESSMENT
Functional Team Process Level Change
Description of change

Affected groups BELOW the Program / Project

Degree of Impact
High

Explanation degree
This change w ill have a high degree of impact because

Org
High

Explanation Org
This change w ill have a high impact on the organisation because..

Pro
Medium

Explanation Pro
This change w ill have a high impact on the processes because..

IT
High

Explanation IT
This change w ill have a high impact on the use of IT Keep informed systems because..

Gov
Low

Explanation Gov

Countries affected

This change w ill have a high impact on the governance as needed Enlist structures because..

Organisational impact assessment

DETAILED STAKEHOLDER PLAN

E-mail Country Function Primary Stakeholder Group Title Additional role Motivations

LOW HIGH STAKEHOLDER INFLUENCE

Desired attitude

Organisation of Barriers/issues Level Influence

To which degree will a particular change impact the organisation of this function?

Processes Current
Attitude

IT

Actions

Governance
To which degree will a particular change impact the governance structure within this function?

To which degree will a particular change impact the processes within this function?

To which degree will a particular change impact the use of IT within this function?

The way we work with our stakeholders

Working with your stakeholders

Three strategies for building commitment 1. Involve key stakeholders in the design process those who are for as well as those who are against 2. Run a pilot in the most challenging part of the business to recruit ambassadors 3. Train HR and support them as much as possible
High Low

Share of voice

Negative

Positive

Reaction to change

A question for you

High

10 min

Low
Opponent

In the projects you are currently working on who are your stakeholders?

Follower

Enthusiast

Our key learnings

Do not make people outside the process into stakeholders If they cannot influence the project decisions, asking them will only add unnecessary complexity If they are not themselves impacted, keeping their interest will cloud the interest of the actual stakeholders Keep stakeholder management a high priority Your stakeholders are not necessarily part of your daily project interactions they can tend to slip off the attention grid Know your stakeholders agenda This is the most effective way of catching their attention and getting their buy-in to the process You can never communicate too much People will need the message from different angles to accept the change

Use ambassadors Hearing the message from your boss or someone you respect is much more powerful

The next step was to enable HR to create strong commitment in all interactions with the business
Commitment is created through facilitation where each person gets to form their own opinions and decide on own actions. A good facilitator:
Enables groups and organizations to work more effectively, to collaborate and to achieve synergy
Contributes with structure and process Remains neutral and promotes mutual understanding Creates extraordinary results and win-win situations

A good facilitator is both a master communicator and a meta communicator

Content what do we need to do? Process how do we do it? Sensemaking why do we need to do it?

We focus on training the HR facilitator in three golden rules of facilitation

Focus on the participants

Convince through involvement

Earn the right to proceed

We make them aware, that it is not just the things you say
The Words Language Jargon Abbreviations Voice Tonality Speed Breathing / Pauses Pitch Volume

7% 38%

Body Language Power Stance Movements Gestures Facial expressions Eye contact

55%

... and that building rapport is how you earn the right to proceed
Rapport is the quality of Harmony Recognition Mutual acceptance Rapport is created through Synchronized communication A genuine interest

The result is a well-established process which all leaders see as valuable and which proves that HR adds value to the business

Thank you