Task A.P.

Møller - Maersk Group:

Evaluating Strategic Talent
Management Initiatives

Submitted by : Group 2
Uphar PGP10121
Shivangi PGP10172
Shaloo PGP10046
Shalini PGP10170
Kulbhushan PGP09089
Ankur PGP10132
Introduction

▪ The A.P moller- Maersk Group was founded in 1904 by Arnold Peter Moller and father, Captain
Peter Maersk Moller
▪ The largest Company in Denmark, and operates in 130 countries with nearly 110.000
employees
▪ Maersk’s total market capitalization was $28 billion
▪ Core business: One of the largest container shipping businesses globally as well as oil and
gas exploration and container terminals operations
▪ Revenue: Container business ( 40% of revenue) operates 2.5 million twenty foot equivalents
units
▪ Moller family controlled an additional 25.9% of the voting power of Maersk
▪ Transitional from a family business to a global conglomerate

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Talent Management pre-2003

▪ Familial relationship
▪ Strong, arguably homogenous and company focused,culture
▪ Bureaucratic
▪ Maersk was good at filling the firm’s needs
▪ less good at focusing on the needs of its individual employees
▪ Execution focus
▪ Lack of external focus

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Talent Management 2003-2008

▪ Hiring and training became business-line rather than Group functions

▪ rotations within rather than across Maersk’s business lines
▪ more performance measurement standards
▪ let go of underperforming employees
▪ Rollout of Maersk’s key corporate values

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Talent Management (2008-2012)

Attraction: Bringing the right people in the group

Identification: Presented by people strategy session
Development: Individual program and development was introduced
Deployment: Focused on more balanced strategy
Scenario Planning: 5 year plan for each unit and assessing unit’s major people needs

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Talent Management Challenges

Retention

❖ Maersk’s energy businesses had seen a notable uptick in attrition – annual voluntary attrition
rates in Maersk Drilling had recently risen from 1-2% to 5%

❖ Managers were often slow to let go of under-performing employees

❖ Not doing well enough is on leveraging the talent of each individual

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Talent Management Challenges
Hiring/ Integration

❖ Maersk referred to this new, balanced talent development approach as “Build, buy or borrow”

❖ Not enough done to support these hires, and that strong and cohesive culture made it difficult
for experienced hires to succeed

Rehiring

❖ The thinking was “There are people that have been successful in the organization, they left for
the right reasons”

❖ Hiring needs were increasing, and the decision was made to reverse the policy of not rehiring
and to consider returning applicants on an opportunistic basis
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Talent Management Challenges
Development

❖ By 2008, Initial results showed above-average attrition rates for program participants as a result
the program was closed down

❖ Training—it was no longer viewed as a reward to be given to high-performing employees.

Instead, “it should be given to people who need it to perform better in their jobs, instead of a
bonus

Culture
❖ Maersk had traditionally been very much a Danish company, that had begun to change, and
as Maersk grew larger and more globalized with respect to its business operation

❖ It was realized later that building a corporate culture which would allow them to attract and
retain talent from all over the globe was of paramount importance 8
HR Customer Initiative

▪ Opening up of Damco’s PSS (People Strategy Sessions) to its best customers

▪ positions were reviewed and then the people in those positions were assessed
▪ Positions ranked as mission critical, critical, less impactful.
▪ People ranked as high performers, successful performers, and less successful performers
▪ customer’s perspective
▪ Lack of control
▪ New and different perspectives

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Recommendations
Retention and Development
▪ Retention and development should
be synced together
▪ Facilitate "Talent Intimacy"
[individualized development] in
alignment with the company's and the
employees expectations
Rehiring
▪ Keep track and connected with
former employees
▪ Exit management should be formed
to handle exit interview with leaving
employees to gain feedback
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Recommendations contd.

Hiring/Integration Culture

▪ Improve the onboarding experience ▪ Conduct informal programme for

for external hires like change in employees
communication style,culture ▪ Conduct cross functional and
▪ Establish mentorship programme departmental training exercise
▪ Orientation programme should be ▪ Conduct culture assessment
conducted for new and external hires
introducing tacit knowledge inherent
to the organisation

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Thanks!

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