AP Moller Case Analysis Summary

A. P. Moller-Maersk Group: Evaluating Strategic Talent Management Initiatives JELLYFISH GROUP Joko | Jul | Resi | Richard | Sondang | Syaiful

Brief History 

The A.P. Møller-Maersk Group was founded in 1904 by Arnold Peter Møller and his father, Captain Peter Maersk Møller

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Headquarter : Copenhagen, Denmark

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The largest company in Denmark, and operates in 130 countries with nearly 110,000 employees

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Maersk’s total market capitalization was $28 billion (As of December 31, 2011)

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Comprises over 100 companies

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Core business : One of the largest container shipping businesses globally as well as oil and gas exploration and container terminals operations

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Revenues : Container business (40% of revenues) – operates 2.5 million twenty foot equivalent units (TEU )

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Transitioned from a family business to a global conglomerate

Problem The global recession in 2008 had negatively impacted both Maersk’s top line and its returns; however, operating results had since improved, and Maersk earned record profits in 2010. In recent years, Maersk had seen a rise in its unusually low historic employee turnover rate. And, Maersk had experienced a notable change in its corporate culture because of transition. In particular, Maersk was experiencing five notable talent challenges. 

Employee Turnover

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Training and Development Program

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Hiring

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Rehiring former Maersk employees (“Boomerangs”)

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In increasing diversity how to creating an Inclusive Culture ?

Growth has posed a daunting challenge to Maersk's talent management infrastructure. Their shifts in strategies have revealed their strengths and weaknesses as a global conglomerate but they were still faced with the question

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Recommendation 

Retention & Development o

Retention should be synced with Development (pre 2003 era)

o

Facilitate "Talent Intimacy"

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Integrate actions out of the 5 talent management areas as part of the strategy to improve retention

o 

Leadership and development coaching to support upward movement

Rehiring o

Exit Interview – provide employers with the opportunity to gain candid feedback and provide employers with information as to how the organisation compares with other employers who recruit from the same talent pool.

o

Develop a tracking system to keep touch with key employees that have left to further their development to ensure they return and can contribute positively to the firm

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Hiring/Integration o

Establish external and boomerang hiring quotas with a criteria (background, experience, leadership qualities) to smooth intake and transition into the organization.

o

Improve the On boarding experience for external hires. (Look at the changes in communication styles, culture, processes)

o

Establish Bi - directional mentor-ship programmes to facilitate knowledge transfer and ease of integration

o

Initiate Orientation programme for new, external hires highlighting work processes, tacit knowledge inherent to the organization, deeper insights into organizational culture - norms, language, heros in the organization

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Culture o

Develop informal mix of heavy/light task related programmes that will facilitate employee mixing to build relationships.

o

Conduct Culture Assessment to understand the explicit and tacit facets of the organization's culture to inform the Talent management Strategy.

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Conduct cross functional and departmental training exercises to drive integration and greater sharing organizational values

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