Humar capital strategy national conference - 09032013
1. Two-Day National Conference on
Building Futuristic Organizations:
Developing Sustainable
Competitive Strategies
March 8-9, 2013
Coimbatore
2. The forum expects to answer key questions
including:
• Are organizations of the future going to be different than the
organizations of the past and the present? If different, in what
ways are they going to be different? What will be the
characteristics of such organizations?
• Future organisations are bound to face challenges including
Uncertainty, Unpredictability, Ambiguity and Change: in such a
scenario what would be the appropriate strategies for adaptive
sustainability?
• What appropriate competitive strategies can be developed and
recommended for those specific characteristics?
• How can future organisations be sustainable in terms of service to
society, environmental protection, long term vision, products and
services, concern for people, thus addressing the triple bottom
3. 10 Ways the Next 10 Years Are Going To
Be Mind-Blowing
• Bio Technology - Bionic Hand controlled by brain signals
• Architecture - Revolving Tower in Dubai
• Computer Speed, Size and Usability - chips will be assembled using
individual atoms or molecules
• Cars and Fuel - electric
• How We Interact With the World - Goggles by Google
• Energy - Solar
• Health - custom-made organs
• Success and Popularity Accessibility - internet is the perfect tool for
capitalism, entrepreneurship, and dreaming
• Robots - !!!
• Clothing - would allow people to generate their own electrical current while
walking
4. 10 Great Career Fields for the Future
Medical Field
Nurse Anesthetists, Nurse Practitioners, Physician Assistants
Technology Sector
Software Architects, Systems Engineers, Software Engineers, IT Analysts
Financial Services
Accountants, Actuaries, Financial Advisors
Education Arena
College Professors, Elementary School Teachers, High School Teachers
Technical Jobs
Physical Therapist Assistants, Dental Hygienists, Veterinary Technicians
5. 10 Great Career Fields for the
Future
Business Services Jobs
Environment Health Specialists, Construction Estimator
Sales Jobs
Sales Managers, Sales Executive, Senior Sales Professional
Consulting Jobs
Management Consultants, Healthcare Consultants
Engineering Jobs
Project Engineer, Civil Engineer, Structural Engineer, Environmental Engineer,
Biomedical Engineer
Middle Management Jobs
Research and Development Manager, Product Manager, Risk Management
Manager
7. Human capital
• Human capital is the stock of
competencies, knowledge, social and personality
attributes, including creativity, embodied in the ability to
perform work so as to produce economic value.
• Human Capital Development is a must need effort that
must be taken forward by organizations to increase the
technical skills, creativity and innovation to drive the
knowledge-based economy.
• Few Demands that today's workforce face –
– Acquiring and retaining new customers
– Generating new ideas
– Improving productivity
8. Human Capital Uncertainties
Human capital related critical uncertainties
Regional Competition for talent Global
Heavy Regulatory constraints in HR management Light
Low Adoption of online HR services High
Cost cutting Organizational priorities Growth
Networked
Traditional and Dominant type of organizational structure or Virtual
hierarchical
Top - Down Innovation and change Bottom - Up
9. Human capital strategy
• It is a must need today for Executives to pursue a more
comprehensive and integrated human capital strategy that includes
– Talent Management
– Leadership Qualities
– Cultural Values
– Organization Components
This helps multiply the value of talent and help create an enterprise
that is able to execute business strategy and adapt to a changing
market.
― Those who can effectively translate their business strategy
into an actionable human capital strategy can drive a new kind
of competitive advantage—one extremely difficult for others to
imitate. ―
10. Linking business strategy to human capital
requirement
WHAT IS MISSING ???
1. A strong program
HR is responsible for 2. An approach led from the
acquiring, developing top
and deploying the 3. Visualize human capital
people needed for an dimension of a business at
successful organization the strategic level
but yet many HR
Departments struggle to
have a deep enough
understanding on how to
translate the business
goals into specific
workforce and
11. Devising a Human capital strategy will link business
strategy to HR strategy ,Hence bridging the gap
The business strategy defines the
direction, positioning, scope ,
BUSINESS STRATEGY objective and competitive
differentiation
ENABLES
SHAPES
Human capital strategy defines the
talent, leadership , culture and
HUMAN CAPITAL organization to execute the
STRATEGY business strategy
ENABLES
SHAPES
The HR strategy articulates the
strategic direction and imperatives
of the HR organization and builds
HR STRATEGY
out capabilities required to align to
the human capital strategy
12. Advantages of an effectives human capital
strategy –
1. Helps the organization to put in place the right leaders to source,
develop and direct the right workforce talent, supported by the right
culture, organization and operating model
2. Working in the human capital dimension underpins many of the
company’s most important decisions about where and how to
compete
3. Helps support the organization as it balances short-term decisions
with longer-term imperatives.
4. supports the organization in meeting today’s urgent needs while
also helping it become agile enough to reposition itself for ongoing
market competitiveness and growth
― For a human capital strategy to be truly robust, it must not only
consider the strategy of today but also its potential evolution in
the future. ―
13. Creating and implementing a human capital
strategy
• Human capital strategy work under four main streams –
1. Talent Management
Competency Planning Gap Analysis
2. Leadership Qualities
Learning Plan Self-Directed Learning Training Sessions
Action and Reflective learning
3. Cultural Values
Stories Rituals Language Material Symbols
4. Organization Component
Organization Design Operating Model
14. Talent Management
• In order to execute the business strategy to its best we
need.
– Competency assessment
– Workforce planning
– Gap Analysis
If properly designed and executed, programs within the
talent work stream of the human capital, strategy can
significantly contribute to a company’s ability to attain its
business goals, and to attract, motivate and retain the
right people.
15. First step – Competency
Talent Management assessment
Review organizations
Second step - business strategy and
Workforce planning determine the capabilities and
• Determine the competencies required by the
workforce supply that the Competency workforce
assessment
Workforce
organization needs planning Understand the impact that
•Determine the no. of the business strategy will
employees required for Gap analysis have on the workforce.
each type of Job (now Innovate new ideas and
and also for the future) approaches towards
recruiting and hiring
employees.
TALENT
Third step – Gap Analysis
-analyze any potential gap between existing workforce competencies and those
needed to execute the business strategy going forward
-Provide training to the employees who have little variance in competencies in order
to fill in the gap.
-Try repositioning workforce to areas in which their competencies match the
requirement of the job.
-Terminate dead woods who prevent the organization from moving towards its
business strategy.
16. Leadership Qualities
• Organizations need leaders who can –
– rally the workforce when there is a challenge,
– Confront them when they are mired in the status quo,
– calm them when the seas are rough, and
– propel them into action when there is a crisis.
• The leadership development aspects of an organization’s human capital
strategy focus on several key questions:
– What is the specific value add beyond their official job titles?
– What attributes, capabilities and behaviors are expected from future
leaders?
– How can organizations use leadership development as a competitive
advantage?
Once these key questions are answered we must put in place a
leadership development program that is closely tied to the needs of
the business strategy and the shifting marketplace.
“A leader is someone whom others will follow to a place they would
normally not go on their own".
17. The leaderships development program must focus on the
following areas –
Training sessions interspersed Using the needs and assessment
throughout the program in addition to results , facilitate a Leadership
self-directed learning, so as to guide learning program
the leadership development process.
Leader
Training
Learning
Sessions
plan
Action & Self
Reflective directed
Learning Learning
Conduct of orientation sessions for the
leadership team Facilitation of self-directed learning
Support the team to research solutions to projects to build the competencies most
the challenges and enable the team to needed by the leader.
report its results to the senior management projects may include case studies,
during the end of the program. shadowing, executive interviews, reading,
Self awareness journal. specific skill development, behaviour
share the findings with the leadership team. change activities, etc.
18. Culture Values
• The basic pattern of shared assumptions , values and
beliefs considered to be correct way of thinking about and
acting on problems and opportunities facing the
organizations.
• It is the philosophy that guides the organization’s policy
towards employees and customers.
• Today's senior Leaders believe –
• business strategies stand little chance of being adopted and
executed if the current culture of their company impedes the
ability to accommodate change and support the business
―vision.
Clarifying the value system and breathing life into it are the
greatest contributions a leader can make. Moreover, that's what
the top people in excellent companies seem to worry about most
―
– Peters and Waterman
19. Elements of organization culture
Individual
initiative
Conflict tolerance Risk tolerance
Communication
Reward system
pattern
identity integration
Management
control
support
20. How to create , sustain and transmit
culture ??
- How it begins - founders!!
- How to keep it alive – Selection practices, Top
Management and socializing
- How do employees learn the culture - Stories ,
rituals, language, material symbols
Cultural alignment with business strategy
If Aligned – If Not Aligned –
Executives must help reinforce Specific programs must be put in
those attributes that support the place to influence the culture and
execution of the business strategy push it in the right direction.
21. Factors Influencing culture
Factors that support Changes in Factors that are against changes in
culture culture
Foreign competition Employees become committed to
them
Changes in Govt. regulations Written statements about mission
and philosophy
Rapid economic shifts Design of physical spaces and
building
Change in stories , rituals, material Dominant leadership pattern
symbols, language
New technologies Past selection practices
Organizations formal structure
Popular stories about key people
and event
22. An ideal organization culture
1. Equal opportunities for employees
2. No discrimination in terms of reward or punishment
3. Understanding the individual as a person
4. Standing by employees in time of crisis
5. Not bending organizational rules but allowing room
for flexibility and humaneness.
6. Allowing true delegation of responsibility or authority
7. Changing roles and responsibilities appropriately.
23. Organization Components
Organization
Organization Design
+
Operating Model
Effective job Employee
Performance sourcing
Leadership
Development Culture
24. Organization Design
• A formal, guided process for integrating the people,
information and technology of an organization.
• Used to match the form of the organization as
closely as possible to the purpose(s) the
organization seeks to achieve
• Through the design process, organizations act to
improve the probability that the collective efforts of
members will be successful.
25. Organization structures
• Hierarchical Structure Vs Organic Structure
Characteristics Hierarchical structure Organic structure
Complexity High – with lots of horizontal Usually lower – less
separation into functions, differentiation or functional
departments and divisions separation
Formality High – lots of well defined lines of Lower – no real hierarchy and
control and responsibility less formal division of
responsibilities
Participation Low – employees lower down the Higher participation – lower
organization have little involvement level employees have more
with decision making influence on decision makers
communication Downward – information starts at Lateral, upward, and downward
the top and trickles down to communication – information
employees flows through the organization
with fewer barriers
It's worth saying that one type of structure is not intrinsically
better than another. Rather, it's important to make sure that the
organization design is fit for organization's purpose and for the
people within it.
26. Organization structure
ORGANIZATION
STRUCTURE
Often found in small
Hierarchical Organic
businesses, the simple
structure structure organization structure is
flat. It may have only two or
three levels; employees
tend to work as a large
team with everyone
functions Simple reporting to one person.
(accounting, structure
marketing, HR etc) people typically have two
are quite separate; Functional or more lines of report. For
each led by a senior structure example, a matrix
`executive who Matrix organization may combine
reports to the CEO. both functional and
the company is
structure divisional lines of
organized by office responsibility
or customer
location. Each Often known as a lean
division is
Divisional Network
structure, this type of
autonomous and structure structure organization has central,
has a divisional core functions that operate
manager who the strategic business. It
reports to the outsources or subcontracts
company CEO. non-core functions
27. Key points and Advantages
• Key points in design of Organization structure –
– Strategy – The organization design must support the strategy.
– Size – The design must take into account the size of the
organization.
– Environment – If the market environment one works in
(customers, suppliers, regulators, etc.) is unpredictable or volatile,
then the organization needs to be flexible enough to react to this.
– Controls – What level of control is right for the business?
– Incentives – Incentives and rewards must be aligned with the
business's strategy and purpose.
• Advantages –
– Streamline Operation
– Improve Decision Making
– Operate Multiple Locations
– Improve Employee Performance
– Focus on Customer Service &Sales
28. Operating Model – Bridge between business
strategy and organization Design
The operating model shows how the strategy and structure of the
organization is executed. The operating model must be purposefully
reshaped in order for an organization to be effective.
Detailed organization
Strategy and heritage Operating model
design
--Detailed structure and
specific decision roles
-Where to play, including
-Company – wide clarity
category brand and
on priorities and
geographic priorities
principles
-How to win, including
-Where and how the -Processes, information
repeatable routines and
most critical work is done flows, technology, tools.
non-negotiabes
-Detailed metrics and
-Company culture and
feedback loops
values to be preserved
-Talent system and
and cultivated
incentives.
-Cultural reinforcements
29. Components of Operating Models
Meeting Schedule and Design Organization structure
•What people and topics should be included in •Organization units and boundaries
regular meetings? •Matrix groups and alignments (functional,
•What are the roles in meetings? geographic)
•What general norms will be followed to make •Levels and spans
meetings effective?
Decision Rights
Programs and Services •What are the most important decisions
and how will they be made?
What programs are common and unique
•What are the roles in the decision-making
to units? Operating process? (e.g., inform, consult, approve,
How is client contact conducted? Model etc.)
What is the standard of service levels?
•How will decisions be evaluated?
Roles and Boundaries Goal Setting and Measurement
What are the boundaries of each unit and what are the •What are the shared measures for common goals?
shared tasks? •How are individual and team goals (levels) set?
What information should be available across •What benchmarks will be used?
boundaries?
Who has responsibility for various tasks?
Are there any special boundary spanning roles?
30. Conclusion
• Today, there has been a drastic difference in the focus of
professionals to train and retrain their skill-set through higher
education.
• In fact, when the going gets rough, it's time for business to train
and develop their human resource capital, so that once the
darker nights are over, the sunrise is glorious.
• All this said, The competition in every industry is shifting in a
very drastic manner, Will Organizations be able to innovate and
execute strategies that can catch up to the shift in the
marketplace?? The answer to that question will solely depend
on the organizations investment towards human capital
assets. Sourcing and retaining top talents in the exact needful
numbers and in the exact needful place in our organization will
be the key to the equation. Along with this equally important are
the leadership quality, cultural characteristics and organization
structure that would enable our workforce talent to help our
company as a whole to achieve high performance