HPH builds on talent to match strategic growth

The ports firm prefers to help existing staff develop the skills
it requires rather than hiring new employees

Finding a balance between the needs of employees and the needs of a rapidly growing company are critical to business success.

Handling more than half of the Kwai Tsing container port activities, Hutchison Port Holdings (HPH) has been working to find such a balance.
Francis Tong, general manager of human resources for HPH, believes that career management is a joint responsibility; employees must play a role in their own development and, in turn, managers play a key role in supporting employees.
So, how does HPH support employees and its business needs? First, the company sets or reviews the strategic direction to determine the skills required for success. Through discussions with managers, critical areas for training and development are identified for individuals.

Because business is growing rapidly, it is important to identify employees for lateral or promotional development and build talent internally rather than hiring new employees, even if occasionally this means taking bets on people.

“Taking risks on people is not a compromise on quality,” Mr. Tong said.

Mr. Tong passionately believes that the most critical component to employee development is ongoing feedback and support by managers,

“Training and development is well beyond just classrooms,” he said.

He admits there are management challenges and he and his staff continue to work with HPH managers to address issues.

Since the business environment is increasingly competitive, it has become vital to focus on people as a resource for growth, and manager awareness is a key component in the employee development process.

To support learning on the job, Mr. Tong said managers needed to be trained to appraise people and to provide straight feedback. Providing an employee with positive feedback is better than pointing out required improvements. Mr. Tong envisions an environment where employees are groomed and developed as a matter of course, and trainees become a natural part of filling the “pipeline” to address business requirements.
HPH outsources most of its training. With a very small human resource department, the use of external expertise is essential. Mr. Tong said external training providers, such as business schools, were valuable because they brought best practices learned from their clients and shared this information.

However, the highly technical aspects of the container operation must be taught by HPH personnel. Employees who complete HPH skills training programmes receive certification for the equipment they operate.

HPH has specifically identified the ability to deal with change and ambiguity, and the development of entrepreneurial capabilities and cultural sensitivity as key for managerial success. To develop these skills, managers participate in an assessment centre where they are evaluated on various competencies.

Managers participate in simulations, role plays and other tests in the evaluation process facilitated by an outside delivery agent. Results are shared with the participants. Also, “on an aggregate level”, the feedback is provided to Ivey School of Business which uses the information to develop customized training for the managers.

Senior management understands the development process of their managers because they, too, have been through the process. Overall, Mr. Tong said the experience had been very positive for both parties. Managers are able to talk openly to their senior managers about areas which need improvement and senior managers are able to communicate to their managers the skills they will improve as a result of the feedback.
According to Mr. Tong , all managers in the programme receive feedback on their “blind spots” and their career path but it is important they understand that not everyone can be fast tracked through promotions. Sometimes, managers move laterally across business units to develop different management skills. Mr. Tong is pleased with the close partnership with the Ivey School of Business and the quality of the customized learning tools Ivey has developed to meet their business requirements.

At HPH, every business unit manager is accountable for a training budget. In addition, there is corporate HR training budget covering the needs of the whole group. At present, the value of training is measured through occasional surveys. A gap exists as there is no process available yet to formally track employee participation or success in developmental activities on a group-wide basis.

Route to success
• Take risks to develop employees
• Provide frequent, direct feedback
• Support development opportunities
• Assist development of career paths

South China Morning Post
August 12,2006