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Questions and Answers
Which region did KONE lead in market share for new equipment by 2012?
Which region did KONE lead in market share for new equipment by 2012?
What was KONE's return on equity by 2012?
What was KONE's return on equity by 2012?
What caused KONE's growth to begin slowing in 2014?
What caused KONE's growth to begin slowing in 2014?
Who took over as Chairman and CEO of KONE in this period?
Who took over as Chairman and CEO of KONE in this period?
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What did KONE need to find to create value, as noted by CEO Ehrnrooth?
What did KONE need to find to create value, as noted by CEO Ehrnrooth?
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What feedback did KONE receive regarding its service business?
What feedback did KONE receive regarding its service business?
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What was a significant factor disrupting the industry during KONE's transformation?
What was a significant factor disrupting the industry during KONE's transformation?
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What was the primary customer concern regarding KONE's services?
What was the primary customer concern regarding KONE's services?
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What was the primary goal of the Accelerate Program?
What was the primary goal of the Accelerate Program?
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Which function was the first to undergo the Accelerate Program?
Which function was the first to undergo the Accelerate Program?
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What strategy did the Accelerate Program use to support frontline organizations?
What strategy did the Accelerate Program use to support frontline organizations?
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What major market challenge is highlighted in relation to KONE?
What major market challenge is highlighted in relation to KONE?
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How has China's market role shifted in the context of technology?
How has China's market role shifted in the context of technology?
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What did Ehrnrooth note about the pace of technological uptake in China?
What did Ehrnrooth note about the pace of technological uptake in China?
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What change in HR was a result of the Accelerate Program?
What change in HR was a result of the Accelerate Program?
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What aspect did the Accelerate Program particularly improve within the organization?
What aspect did the Accelerate Program particularly improve within the organization?
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What is the primary focus of the case study regarding KONE Corporation?
What is the primary focus of the case study regarding KONE Corporation?
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Who is responsible for teaching the case study at Fondazione Bologna University Business School?
Who is responsible for teaching the case study at Fondazione Bologna University Business School?
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What does the collaboration with KONE Corporation enable in this educational material?
What does the collaboration with KONE Corporation enable in this educational material?
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Which of the following best describes the representation of KONE’s views in the case study?
Which of the following best describes the representation of KONE’s views in the case study?
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What is the significance of the order reference number mentioned in the document?
What is the significance of the order reference number mentioned in the document?
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When was the teaching case on KONE Corporation made available for use?
When was the teaching case on KONE Corporation made available for use?
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What type of educational institution is associated with this case study?
What type of educational institution is associated with this case study?
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What is the nature of the events and organizational arrangements discussed in the case study?
What is the nature of the events and organizational arrangements discussed in the case study?
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What was the primary concern of the individual regarding their future at KONE?
What was the primary concern of the individual regarding their future at KONE?
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What action did the individual take to address their career concerns?
What action did the individual take to address their career concerns?
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What type of company culture does KONE promote according to the Vice President's statement?
What type of company culture does KONE promote according to the Vice President's statement?
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What strategic change is KONE focusing on to enhance its capabilities?
What strategic change is KONE focusing on to enhance its capabilities?
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What aspect of talent management has KONE significantly improved upon in China?
What aspect of talent management has KONE significantly improved upon in China?
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During the meeting, which key question was raised about KONE’s workforce?
During the meeting, which key question was raised about KONE’s workforce?
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What signifies KONE's position in the market as of 2012?
What signifies KONE's position in the market as of 2012?
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What leadership quality did the individual exhibit by expressing their concerns?
What leadership quality did the individual exhibit by expressing their concerns?
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What challenges did KONE's management team address in their meeting?
What challenges did KONE's management team address in their meeting?
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What challenge is KONE facing despite its current success?
What challenge is KONE facing despite its current success?
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What is noted about the competition in KONE's current market?
What is noted about the competition in KONE's current market?
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What was the primary belief that influenced KONE China's language practice?
What was the primary belief that influenced KONE China's language practice?
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Which of the following is NOT mentioned as a factor in KONE's business environment?
Which of the following is NOT mentioned as a factor in KONE's business environment?
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What impact did limited language skills have on Chinese candidates?
What impact did limited language skills have on Chinese candidates?
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What activity are Henrik Ehrnrooth and Susanne Skippari engaged in while reflecting on changes in KONE?
What activity are Henrik Ehrnrooth and Susanne Skippari engaged in while reflecting on changes in KONE?
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What aspect of Shanghai impresses the KONE executives during their stroll?
What aspect of Shanghai impresses the KONE executives during their stroll?
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What obstacle did KONE China face in populating the Global Emerging Leader talent pool?
What obstacle did KONE China face in populating the Global Emerging Leader talent pool?
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What initiative was created to address the dilemma of leadership talent in KONE China?
What initiative was created to address the dilemma of leadership talent in KONE China?
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Why is China considered KONE's most important market?
Why is China considered KONE's most important market?
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What is a critical approach for KONE China to ensure enough talented individuals are available?
What is a critical approach for KONE China to ensure enough talented individuals are available?
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What may be a consequence of the technological disruption KONE faces?
What may be a consequence of the technological disruption KONE faces?
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What kind of actions are monitored at both country and global levels to foster talent development?
What kind of actions are monitored at both country and global levels to foster talent development?
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How are managers at KONE China supported in developing employees’ growth potential?
How are managers at KONE China supported in developing employees’ growth potential?
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Why is there a thin successor pool in KONE China?
Why is there a thin successor pool in KONE China?
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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.
