KONE Corporation Global Talent Management Case Study
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Questions and Answers

Which region did KONE lead in market share for new equipment by 2012?

  • Sub-Saharan Africa
  • Central and Northern Europe (correct)
  • Latin America
  • North America

What was KONE's return on equity by 2012?

  • Above 30% (correct)
  • Exactly 25%
  • Below 10%
  • Around 20%

What caused KONE's growth to begin slowing in 2014?

  • Changes in leadership
  • Disruption in service
  • Market slowdown and competition (correct)
  • Increased production costs

Who took over as Chairman and CEO of KONE in this period?

<p>Henrik Ehrnrooth (A)</p> Signup and view all the answers

What did KONE need to find to create value, as noted by CEO Ehrnrooth?

<p>New ways to differentiate (B)</p> Signup and view all the answers

What feedback did KONE receive regarding its service business?

<p>They felt services were all the same (B)</p> Signup and view all the answers

What was a significant factor disrupting the industry during KONE's transformation?

<p>Digital technology (A)</p> Signup and view all the answers

What was the primary customer concern regarding KONE's services?

<p>No clarity on service functionalities (A)</p> Signup and view all the answers

What was the primary goal of the Accelerate Program?

<p>To focus on customers and gain speed (B)</p> Signup and view all the answers

Which function was the first to undergo the Accelerate Program?

<p>HR function (A)</p> Signup and view all the answers

What strategy did the Accelerate Program use to support frontline organizations?

<p>Creating centres of expertise hubs (A)</p> Signup and view all the answers

What major market challenge is highlighted in relation to KONE?

<p>Rapid urban and technological developments (C)</p> Signup and view all the answers

How has China's market role shifted in the context of technology?

<p>From a market buying leading technology to an uptake market for new services (A)</p> Signup and view all the answers

What did Ehrnrooth note about the pace of technological uptake in China?

<p>It is the fastest in the world. (A)</p> Signup and view all the answers

What change in HR was a result of the Accelerate Program?

<p>HR started functioning purely as a service. (C)</p> Signup and view all the answers

What aspect did the Accelerate Program particularly improve within the organization?

<p>Competencies in various functions (C)</p> Signup and view all the answers

What is the primary focus of the case study regarding KONE Corporation?

<p>Global talent management strategies (B)</p> Signup and view all the answers

Who is responsible for teaching the case study at Fondazione Bologna University Business School?

<p>Ludovico Bullini Orlandi (C)</p> Signup and view all the answers

What does the collaboration with KONE Corporation enable in this educational material?

<p>Primary and secondary data insights (C)</p> Signup and view all the answers

Which of the following best describes the representation of KONE’s views in the case study?

<p>It does not represent KONE's official views. (A)</p> Signup and view all the answers

What is the significance of the order reference number mentioned in the document?

<p>It is a tracking number for purchases. (A)</p> Signup and view all the answers

When was the teaching case on KONE Corporation made available for use?

<p>November 2023 (D)</p> Signup and view all the answers

What type of educational institution is associated with this case study?

<p>A university business school (C)</p> Signup and view all the answers

What is the nature of the events and organizational arrangements discussed in the case study?

<p>They may have been altered for classroom purposes. (B)</p> Signup and view all the answers

What was the primary concern of the individual regarding their future at KONE?

<p>Uncertainty about career opportunities (A)</p> Signup and view all the answers

What action did the individual take to address their career concerns?

<p>Shared their concerns with their boss (D)</p> Signup and view all the answers

What type of company culture does KONE promote according to the Vice President's statement?

<p>An innovative company that is proactive about opportunities (A)</p> Signup and view all the answers

What strategic change is KONE focusing on to enhance its capabilities?

<p>Implementing a digital service transformation strategy (D)</p> Signup and view all the answers

What aspect of talent management has KONE significantly improved upon in China?

<p>Attracting and developing local talent (C)</p> Signup and view all the answers

During the meeting, which key question was raised about KONE’s workforce?

<p>How to reskill the workforce for future needs? (D)</p> Signup and view all the answers

What signifies KONE's position in the market as of 2012?

<p>KONE has become an industry leader in China. (A)</p> Signup and view all the answers

What leadership quality did the individual exhibit by expressing their concerns?

<p>Proactive engagement in career development (D)</p> Signup and view all the answers

What challenges did KONE's management team address in their meeting?

<p>Identifying the types of people and organization needed for success (A)</p> Signup and view all the answers

What challenge is KONE facing despite its current success?

<p>Technological disruption requiring new competencies. (B)</p> Signup and view all the answers

What is noted about the competition in KONE's current market?

<p>Competition is still intense and demanding. (B)</p> Signup and view all the answers

What was the primary belief that influenced KONE China's language practice?

<p>Limited English proficiency doesn't affect market share. (A)</p> Signup and view all the answers

Which of the following is NOT mentioned as a factor in KONE's business environment?

<p>Expansion challenges in North America. (A)</p> Signup and view all the answers

What impact did limited language skills have on Chinese candidates?

<p>They struggled with integration into the global organization. (C)</p> Signup and view all the answers

What activity are Henrik Ehrnrooth and Susanne Skippari engaged in while reflecting on changes in KONE?

<p>Taking an evening stroll along the Bund. (A)</p> Signup and view all the answers

What aspect of Shanghai impresses the KONE executives during their stroll?

<p>The modern skyline and visible changes. (B)</p> Signup and view all the answers

What obstacle did KONE China face in populating the Global Emerging Leader talent pool?

<p>Limited external sources available for recruitment. (A), Candidates struggled to interact with international colleagues. (C)</p> Signup and view all the answers

What initiative was created to address the dilemma of leadership talent in KONE China?

<p>Local Emerging Leaders Program (C)</p> Signup and view all the answers

Why is China considered KONE's most important market?

<p>It provides the most employment within the company. (B)</p> Signup and view all the answers

What is a critical approach for KONE China to ensure enough talented individuals are available?

<p>Emphasizing internal recruitment and talent development. (D)</p> Signup and view all the answers

What may be a consequence of the technological disruption KONE faces?

<p>A need for new competences and capabilities in the workforce. (B)</p> Signup and view all the answers

What kind of actions are monitored at both country and global levels to foster talent development?

<p>Emerging Leaders' development actions. (D)</p> Signup and view all the answers

How are managers at KONE China supported in developing employees’ growth potential?

<p>Through specialized training and coaching. (B)</p> Signup and view all the answers

Why is there a thin successor pool in KONE China?

<p>Limited English skills among Chinese candidates prevent growth. (C)</p> Signup and view all the answers

Flashcards

KONE Case Study

A case study analyzing KONE's global talent management practices.

Case Study Authors

The individuals responsible for designing and implementing the case study.

KONE Corporation

The company being studied in the case study, a global leader in elevator and escalator solutions.

Global Talent Management

The process of attracting, developing, and retaining talented employees across different locations.

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The Case Centre

The institution where the case study was written and is available for purchase.

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School of Management, University of Vaasa

The school responsible for teaching the KONE case study to students.

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Pushing the Right Buttons: Global Talent Management at KONE

The specific course where the KONE case study is being used.

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Ludovico Bullini Orlandi

The professor teaching the KONE case study to students.

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President and CEO

The individual responsible for the overall direction and success of a company.

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Executive Vice President of Human Resources

The department focused on employee management, including hiring, training, and employee relations.

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The Bund

A prominent waterfront area in Shanghai, known for its modern architecture and bustling atmosphere.

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Jet lag

The process of adapting to a new time zone and environment after traveling long distances.

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Huangpu River

The river that divides the city of Shanghai into two parts, with the Bund on one side.

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Industry leader

The act of becoming the leading competitor in an industry.

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Market potential

The potential for a market to grow and expand.

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Technological disruption

The introduction of new technologies that can disrupt existing industries.

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KONE's market share in 2012

KONE's market position in 2012 for new equipment sales.

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Return on equity (ROE)

The financial metric used to assess KONE's profitability.

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EBIT (Earnings Before Interest and Taxes)

KONE's financial performance metric, signifying profit before interest and taxes.

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Slowing growth in 2014

The key driver behind KONE's shift in strategy in 2015.

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Digital disruption

The key industry trend driving KONE’s new strategy.

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Differentiation and customer value

The core value proposition of KONE's new digital strategy.

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Lack of clarity and transparency

The primary concern of KONE's customers with existing service offerings.

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Customer need for differentiation

The key takeaway from KONE's customer feedback regarding services.

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Accelerate Program

A program designed to make a company's operations faster and more customer-focused through streamlining processes, leveraging global resources, and building expertise in key departments.

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HR as a Service

Moving certain HR functions, like training and development, to specialized teams in different regions to free up frontline managers and provide standardized HR services.

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Uptake Market

The process of shifting from being a buyer of leading technologies to actively developing and deploying new digital services within a market.

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Fast Uptake

Rapid adoption of new technologies and services, often leading to rapid implementation and testing of new ideas.

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Speed and Efficiency

Focus on improving a company's efficiency and effectiveness through streamlining processes.

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Customer Centricity

Prioritizing customer needs and experiences when making decisions and developing strategies.

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Proof of Concept

The capability to quickly and effectively prove that a new concept or solution is viable and valuable.

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Rapid Urban, Economic and Technological Developments

The combination of rapid urbanization, economic growth, and technological advancements, often observed in emerging markets.

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Language Barrier in KONE China

KONE China's preference for Chinese-speaking candidates with limited English proficiency resulted in challenges like difficulty meeting basic requirements, inadequate successor pools, and restricted participation in global training programs.

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KONE China's Talent Development Strategy

The lack of qualified candidates led KONE China to heavily rely on internal recruitment and development, making talent development a crucial strategy for the company.

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Local Emerging Leaders Program

In response to the language barrier and talent scarcity issues, KONE China established the Local Emerging Leaders program to address the lack of qualified local talent.

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Goal of Local Emerging Leaders Program

The goal of the Local Emerging Leaders program is to create a talent pool of individuals who can effectively navigate the global organization, bridging the gap between local and international operations.

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Filling the Global Emerging Leader Pool

Despite the Local Emerging Leaders program, KONE China continues to face challenges in filling the Global Emerging Leader pool, highlighting the need for ongoing efforts to attract and cultivate international-ready talent.

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Monitoring Talent Development

KONE China's talent development initiatives are closely monitored and followed up both on a country and global level, ensuring company-wide commitment to talent growth.

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Manager Training and Coaching

In addition to formal training programs, managers at KONE China receive coaching to effectively develop the growth potential of their employees.

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KONE China's Growth and Talent Needs

KONE China's rapid growth in both equipment and service businesses created a significant need for talent which could not be met solely by external recruitment.

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KONE's commitment to employee development

A company's dedication to offering employees opportunities for growth and advancement. They view it as their responsibility to ensure the success of their talent.

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Reskilling the workforce

The process of teaching employees new skills to meet changing industry demands and implement new technology.

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Organizational capabilities

The capabilities an organization needs to succeed in a market, including technology, talent, and strategy.

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Digital service transformation

Adapting to new technologies and methods to improve operations and service delivery.

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Meeting market needs in China

Assessing and adapting to the needs of different markets, including talent profiles and organizational structures.

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Identifying Emerging Leaders

The practice of identifying and nurturing employees with high potential for leadership roles.

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Tough at the top: Talent management in a changing market

The challenge for a company to keep its workforce up-to-date with rapidly changing technologies and market demands.

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Study Notes

KONE Corporation: Global Talent Management

  • Case study on KONE, a Finnish elevator and escalator company, focusing on its global talent management strategy.
  • The case study utilizes primary and secondary data; however, events, organizational arrangements, and timings may be altered.
  • KONE's major market is China, but faces significant challenges there (fierce competition and technological disruption).
  • KONE aims to acquire and retain talent effectively, while improving customer centricity and collaboration while maintaining global reach.

Global Elevator and Escalator Industry

  • KONE controls 90% of the global market revenue within the elevator industry.
  • Four major companies dominate the market: KONE, Otis, Schindler, and Thyssenkrupp.
  • New equipment sales are cyclical, lagging behind construction trends. Maintenance is more consistent.
  • Key 'mega-trends' influencing the industry include urbanization, aging populations, safety concerns, and technological disruption.

KONE's Background and Growth

  • Founded in 1910, KONE diversified from textile manufacturing to elevators in the 1960s.
  • International expansion primarily through acquisitions, entering new markets and expanding product offerings.
  • Significant growth and market leadership in China, achieved in part by a successful joint venture.
  • KONE's vision statement is "to deliver the best People Flow experience". This was implemented in 2007.
  • A strong focus has been placed on talent management and development.

KONE's Strategy for a Digital Future

  • KONE realized an increasing need to transform talent management to align with the service-centric transformation.
  • Launched the 'Winning with Customers strategy' in 2017 with four key capabilities (collaborative innovation, customer-centric solutions, true service mindset, and fast execution).
  • Implemented '24/7 Connected Services', a system using Watson to monitor and analyze data from elevators.
  • KONE implemented initiatives like new recruitment and talent acquisition to address development, competence, and attraction.

Global Talent Management at KONE

  • KONE employs globally shared processes and tool for talent management which leverages global performance management.
  • Implemented a 'Leadership and Talent Review' (LTR) process to identify and develop 'Emerging Leaders'.
  • Developed specific criteria for talent like skills, performance, ambition, and ability to develop.
  • Created a separate Local Emerging Leader category in countries where English language isn't widely used.
  • A focus on succession planning and retention is part of the strategy.
  • Adopted a comprehensive talent development program including formal training (70/20/10 strategy), mentorship, stretch assignments, and experiences with customers.
  • Talent retention processes include regularly evaluating employee risk factors.

KONE China

  • KONE has achieved market leadership in China.
  • Significant growth and expansion, driven by localization efforts.
  • Challenges in managing the rapid growth include talent acquisition, retention and internal mobility.
  • A focus on local talent, despite the presence of competitors, is part of the strategy.
  • The company has made specific adjustments to address the differences and challenges of working in China.

Key Challenges and Future Considerations

  • Maintaining a successful talent acquisition strategy, given the competitive market landscape.
  • Handling the transition from new machinery sales to maintenance & modernization.
  • Addressing linguistic and cultural differences to foster better international employee communication.
  • KONE faces the challenge to create a culture that values global diversity and inclusion.
  • KONE has to understand more about what new competences are needed for the future.

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Description

Explore the talent management strategies of KONE Corporation, a leader in the global elevator industry. This case study analyzes the company's approaches in the context of competitive pressures and technological changes, focusing on its major market in China. Learn how KONE aims to enhance customer centricity while navigating challenges in talent acquisition and retention.

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