Leading People in Brazil presents insights and challenges to large corporations and senior leaders, based on ELOS Essential Leadership Skills For Organizational Strategy methodology developed by Dr. Daniel Augusto Motta, CEO of BMI

1. Leading People in Brazil
Challenges & Insights for HR Managers
Leading People in Brazil
Challenges & Insights for HR Managers

2. Daniel Augusto Motta
Partner and CEO BMI
PhD in Economics (University of São Paulo)
MSc in Economics (Fundação Getúlio Vargas)
BA in Economics (University of São Paulo)
Professor of Strategy and Leadership at Thunderbird School of
Global Management and Fundação Dom Cabral
Member of World’s Most Ethical Companies Advisory Panel
Former Professor of Strategy, Economics and Leadership at
Insper, FGV-EAESP, ESPM, PUC-SP, John Hopkins University
and Stockholm School of Economics
Author of ELOS© and PACTO© methodologies, both published
by Harvard Business Review Brasil
Academic papers on Financial Economics and Game Theory
published by Applied Economic Review, Brazilian Economy
Review, Latin American Meeting of Econometric Society and
Brazilian Workshop of Game Theory
Leading People in Brazil
Challenges & Insights for HR Managers

3. Agenda
Leading People in Brazil
Challenges & Insights for HR Managers

4. Agenda
• How
can
we
develop
high
performance
teams
for
the
future?
• What
about
global
trends
for
people
management?
• What
is
going
on
in
Brazil?
Leading People in Brazil
Challenges & Insights for HR Managers

5. How
can
we
develop
high
performance
teams
for
the
future?
Leading People in Brazil
Challenges & Insights for HR Managers

6. High
performance
dynamics
Cultural Alignment
Essential Drivers of high
leadership tools performance
Cultural Rituals Skills
Coaching Trust
Communication Commitment
Tactical Management Meaning
Productivity
Emotional Bond
Source: Daniel Motta (2012), How does the essential leader sustain
organizational transformation?, Harvard Business Review Brasil
Leading People in Brazil
Challenges & Insights for HR Managers

7. ELOS
|
EssenBal
Leadership
Skills
for
OrganizaBonal
Strategy
Competitive Value Proposition Organizational
Landscape Essence
_ Clients
_ Economic _ Employees _ Vision
_ Social _ Society _ Culture
_ Technology _ Shareholders _ Strategy
_ Business _ Structure
Strategic Execution Essential Performance
Leadership Drivers
_ Sales & Marketing
_ People _ Communication _ Meaning
_ Operations & IT _ Coaching & Feedback _ Trust
_ Finance _ Cultural Rituals _ Commitment
_ Tactical Management _ Skills
Source: Daniel Motta (2012), How does the essential leader sustain
organizational transformation?, Harvard Business Review Brasil
Leading People in Brazil
Challenges & Insights for HR Managers

8. What
about
global
trends
for
people
management?
Leading People in Brazil
Challenges & Insights for HR Managers

9. Global
trends
for
people
mgmt
High
Improving Managing talent
performance Enhancing
management employee Improving
Source: BCG (2012), Creating People Advantage Report
and rewards engagement leadership
development
On-boarding
and retaining
new hires
Transforming
Future Importance
HR into a Strategic
Strong Delivering strategic partner workforce
need on recruiting planning
to act
Medium
Improving Managing change
need
employer and cultural
to act Mastering HR branding transformation
processes
Low need
Managing flexibility Managing
to act
and labor costs work-life
Delivering critical balance
learning programs
Managing
Managing corporate Managing Actively using
health and Managing
social an aging Web 2.0 for HR
security diversity and
responsibility workforce
inclusion
Integrating global
Restructuring the Providing shared services people management
Low organization and outsourcing HR and expansion
High Current Capacity Low
Leading People in Brazil
Challenges & Insights for HR Managers

10. Who
said
HR
doesn’t
impact
business?
Topic in which most capable and least capable The impact that most capable companies achieve
companies were compared over the least capable companies in …
1 Improving performance management and rewards 3.5x 2.0x
2 1.9x
Source: BCG (2012), Creating People Advantage Report
On-boarding and retaining new hires 2.5x
3 Managing talent 2.2x 2.1x
4 Enhancing employee engagement 2.4x 1.8x
5 Improving employer branding 2.1x 2.0x
6 Improving leadership development 2.1x 1.8x
7 Strategic workforce planning 1.8x 1.8x
8 Mastering HR processes 1.8x 1.7x
… revenue growth
… profit margin
9 Delivering critical learning programs 1.8x 1.6x
10 Delivery on recruiting 1.6x 1.7x
11 Managing flexibility and labor costs 1.6x 1.5x
12 Managing health and security 1.5x 1.4x
13 Managing change and cultural transformation 1.5x 1.4x
14 Transforming HR into a strategic partner 1.4x 1.5x
15 Managing corporate social responsibility 1.5x 1.4x
16 Managing work-life balance 1.5x 1.3x
17 Restructuring the organization 1.4x 1.4x
18 Managing an aging workforce 1.2x 1.5x
19 1.2x 1.4x
Managing diversity and inclusion
20 1.2x 1.3x
Actively using Web 2.0 for HR
21 1.1x 1.2x
Integrating global people management and expansion
22 0.8x 1.1x
Providing shared services and outsourcing HR
Leading People in Brazil
Challenges & Insights for HR Managers

11. It’s
all
about
leadership
and
talent
Middle East &
Americas Europe Asia-Pacific
Africa
Source: BCG (2012), Creating People Advantage Report
Middle East & Africa
Asia-Pacific overall
United Arab Emirates
Americas overall
Europe overall
United Kingdom
United States
South Korea
South Africa
Argentina
Germany
Australia
Romania
Portugal
overall
Finland
Mexico
Taiwan
France
Russia
China
Spain
Italy
Managing talent 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 2 3 1 1 3 1 2
Improving leadership development 2 2 2 1 2 4 2 4 3 2 6 4 2 2 5 4 1 2 2 2 2 3
Strategic workforce planning 3 5 7 3 3 2 5 2 5 14 2 2 7 5 2 1 6 3 3 1 3 1
Enhancing employee engagement 4 3 3 4 5 6 6 16 4 15 12 3 3 7 6 7 2 10 4 5 18 15
Managing change and cultural transformation 6 12 13 6 4 3 3 6 2 4 4 9 6 8 7 8 5 6 5 9 4 5
Actively using Web 2.0 for HR 7 8 5 5 6 5 8 8 14 8 5 13 10 3 8 5 10 4 6 8 9 8
Transforming HR into a strategic partner 11 6 15 13 8 15 16 7 6 6 16 6 4 14 4 3 15 5 15 4 5 4
Managing work-life balance 5 16 4 12 10 17 7 5 15 5 14 14 11 16 3 6 9 17 17 13 11 11
Improving performance management and rewards 8 4 14 10 12 7 9 17 9 3 13 5 5 9 12 14 8 9 9 6 12 7
Improving employer branding 17 15 12 17 13 11 4 13 10 7 3 11 8 12 14 11 18 12 13 19 17 13
Overall Rank: 1 2 3 4 5 Rank: 1 2 3 4 5
Leading People in Brazil
Challenges & Insights for HR Managers

12. BRICS
need
to
boost
HR
capabiliBes
1 Improving performance management and rewards
2 On-boarding and retaining new hires
3 Managing talent Current
Source: BCG (2012), Creating People Advantage Report
4 capabilities
Enhancing employee engagement assesed by
5 Improving employer branding BRICS companies
6 Improving leadership development Current
7 Strategic workforce planning capabilities
8 Mastering HR processes assesed by non-
BRICS companies
9 Delivering critical learning programs
10 Delivery on recruiting
11 Managing flexibility and labor costs
12 Managing health and security
13 Managing change and cultural transformation
14 Transforming HR into a strategic partner
15 Managing corporate social responsibility
16
Managing work-life balance
17
Restructuring the organization
18
Managing an aging workforce
19
Managing diversity and inclusion
20
Actively using Web 2.0 for HR
21
Integrating global people management and expansion
22
Providing shared services and outsourcing HR
Leading People in Brazil
Challenges & Insights for HR Managers

13. BRICS
lack
from
management
skills
All BRICS
Source: BCG (2012), Creating People Advantage Report
Most critical shortages respondents Brazil Russia India China South Africa
Managerial skills 1 3 1 1 1 3
Skill cluster
Leadership skills 2 2 6 3 2 2
Technical skills 3 1 4 2 4 1
Teamwork and communication 4 7 5 4 3 7
Foreign language skills 5 4 2 6 5 8
Management 1 1 1 2 1 1
Workforce group
Research and development 2 2 7 1 2 2
Marketing and sales 3 5 5 3 3 8
Human resource 4 3 3 6 4 7
Manufacturing and operations 5 7 2 7 5 6
1 2 3 4 5
Leading People in Brazil
Challenges & Insights for HR Managers

14. What
is
going
on
in
Brazil?
Leading People in Brazil
Challenges & Insights for HR Managers

15. Ups
and
downs
in
Brazil
Low
inflaBon
Solid
democracy
Employment
BeKer
income
distribuBon
Credit
expansion
Low
producBvity
High
bureaucracy
and
taxes
Exported
goods
profile
High
tech
follower
Poor
infrastructure
Leading People in Brazil
Challenges & Insights for HR Managers

16. Doing
business
in
Brazil
is
challenging
Brazil is the 48th in the global competitive ranking
For some of them, Brazil unfortunately has an even worse performance
Investments Judiciary Quality of Transparency of Trust in
conditions independence institutions public policies politicians
New New
Singapore Singapore Singapore
Zeland Zeland
1º
17º
Peru
25º 26º
Rwanda Uruguay
43º
South Africa
62º
65º
Bolivia
Brazil
71º
Brazil 79º
Brazil 121º
91º
Brazil
Brazil
144º
Surinam Venezuela Venezuela Algeria Haiti
Source: The Global Competitiveness Report 2012-2013 (2012)
Leading People in Brazil
Challenges & Insights for HR Managers

17. Brazil
suffers
from
high
bureaucracy
Brazil has one of the We also have one of the We also require one of the Foreign trade is also affected
longest period of longest period for trademark longest period for by poor port structure
corporate disputes in court and patent registration construction licenses (time to release cargo in days)
(in months) (in months) (in days)
Brazil 469
India 47 Brazil 96 Export 13
Brazil
Import 17
European Germany 97
Brazil 24 48
Union
12
Mexico
Canada 19 Mexico 48 Mexico 81 12
United
France South Korea 6
States Netherlands
6
New South
7 30 Singapore 26
Zeland Korea
5
Singapore
Singapore 5 Germany 26 4
United States 26
Source: Central Bank of Brazil, IPEA, OCDE, EXAME (2012)
Leading People in Brazil
Challenges & Insights for HR Managers

18. Brazil
suffers
from
poor
educaBon
Countries with best results in international knowledge tests became richer faster
1960’s GDP per capita Average annual GDP 2000’s GDP per capita Average score in
(in billion dollars) Growth 1960-2000 (in billion dollars) international
knowledge test
OCDE Countries 11,252
2.1% 26,147 500
Europe 7,469
21,752 492
2.9%
Asia 1,891 4.5% 13,571 480
Latin America 1.8% 8,063 388
2.8% 7,185 364
Brazil 2,395
1.4% 3,792 360
Sub-Saharan Africa 2,304
Source: Central Bank of Brazil, IPEA, OCDE, EXAME (2012)
Leading People in Brazil
Challenges & Insights for HR Managers

19. Brazil
suffers
from
low
producBvity
Source: Central Bank of Brazil, IPEA, OCDE, EXAME (2012)
Over the last three decades, ... positioning Brazil as the worst
Brazilian productivity has performer among BRIC countries
been slowing down...
11
(average annual growth of productivity in %)
Average annual growth of productivity in %
10
China
4.8% 4.7% 9
3.6% 8
7
India
6
0.9%
5
Russia
4
South Korea
3
-0.9% USA
-1.4% Mexico
2
Chile
1950-1959
1960-1969
1970-1979
1980-1989
1990-1999
2000-2009
1 UK Japan
Brazil Canada
0
Germany
-1
0 10 20 30 40 50 60 70 80 90 100 110
Average income per employee in USD
Leading People in Brazil
Challenges & Insights for HR Managers

20. GDP
growth
might
be
frustrated
Average annual evolution
(2001-2011)
2.1% 0.6% 1% 3.7%
Average growth Average growth Average growth due
due to the EAP due to employment to productivity GDP growth
Average annual evolution
(forecast 2011-2020)
1.6% 0% 2% 3.6%
Source: Central Bank of
Average growth Average growth Average growth due GDP growth
Brazil, IPEA, EXAME (2012)
due to the EAP due to employment to productivity
Leading People in Brazil
Challenges & Insights for HR Managers

21. Reasons
why
Brazil
is
sBll
in
the
spot
Consumer
Real
Interest
Oil
&
Gas
Sport
Events
CommodiBes
Market
Rate
Leading People in Brazil
Challenges & Insights for HR Managers

22. HR
challenges
in
Brazil
Leadership
Talent
Pipeline
Development
Enhance
Improve
Global
OperaBonal
Mindset
&
Efficiency
&
PracBces
InnovaBon
Leading People in Brazil
Challenges & Insights for HR Managers

23. Q&A
Leading People in Brazil
Challenges & Insights for HR Managers

24. BMI Brazilian Management Institute
Av São Gualter | 1734 | Alto de Pinheiros
São Paulo SP | 05455.002 | Brasil
+ 55 11 3567 0512 | 999 66 79 75
www.bmibrasil.com.br
daniel.a.motta@bmibrasil.com.br
@bmibrasil
Leading People in Brazil
Challenges & Insights for HR Managers