Shaping the role of human resource
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Shaping the role of human resource
- 1. SHAPING THE ROLE OF HR: Tactics for Strategic Change
- 2. SESSION OBJECTIVES Broaden perspectives Challenge the conventional wisdom regarding HRM Peek into the future
- 3. Survey Says….. 50% of HR professionals see themselves as strategic business partners within their organizations But only 17% of HR professionals say they are invited to participate in the initial stages of major enterprise initiatives
- 4. Closing the Gap Requires A change in mindset HR The Enterprise Continuing to performing the basic functions well Organizational Literacy Courageous Leadership
- 5. A New Mindset: HR as an Investment, Rather than an Expense Historically: HR and people were not considered tangible assets. The ‘means of production’ was a machine bolted to the factory floor. People merely operated it. Today: The intangible of human capital (what people know + their level of commitment to the organization) is the prime driver of organizational results.
- 6. A New Paradigm HR is shifting from focusing on the organization of the business to focusing on the business of the organization
- 7. The Goal The intent of the new HR paradigm is to achieve alignment among the Strategy Structure Culture of the enterprise.
- 8. Strategic HR Focus Alignment Process integration Information management Innovation Measurable results
- 9. Strategic HR Partner Change agent Passionate about people as the source of organizational success
- 10. The Foundation Traditional HR Functions Employment Compensation Benefits Training/Development
- 11. Just a Thought If you keep on doing what you’ve always done, you’ll keep on getting what you always got………
- 12. Emerging Functions Additional value added: Multi level performance analysis – people, teams, the organization Aligning HR process to drive organizational results HR as a component in the enterprise value proposition, in vision & mission achievement
- 13. High Gain HR Questions How do people create value for the organization? How does HR contribute to and measure the value creation process?
- 15. HR Evolution:Personnel” Functions Transactions Compliance Record keeping Financial Focus Cost minimized Key Strategies Rule knowledge Process efficiency Products/Services Payroll & benefit administration Job descriptions/standards Training Compliance Metaphor The enforcer Paradigm Technical correctness
- 16. HR Evolution: “Human Resources” Functions Advisory services Problem solving Operational issues Financial focus Cost control Key strategies HR practices Business context Products/services Recruiting, Performance evaluation, Payroll, Position management, Employee relations, Training & Development, Risk management Metaphor Business Partner Paradigm Process Improvement
- 17. HR Evolution: “Human Capital” Functions Capacity building Opportunity identification Strategic issues Financial focus Investment analysis (ROI) Key strategies Systems thinking Strategic consulting Products/services Human capital planning, Talent management, Leadership development & succession planning, Performance culture, Competency systems, Metrics Metaphor Strategic Partner Paradigm Transformation
- 18. HR Strategic Architecture HR Function HR professionals with strategic competencies to deliver products/services that drive organizational success HR System Performance driven, strategically aligned policies & practices Human Performance Strategically focused competencies, motivation, skills, capabilities
- 19. The Strategic HR Model Strategic HR Leadership The HR Value Proposition: Linkage to Results Business Literacy: HR knows the business Doing the ‘basics’ well Know the HRBOK Personal credibility of the HR practitioner
- 20. An Emerging HR Mindset Focused on adding value for the customer Proactive Willing to assume risk Results driven
- 21. HR Best Practices HR Practice Measures Bottom 10% Top 10% Qualified applicants per hire 8 37 Annual training hours: Per new employee 35 Per experienced employee 13 117 72 % employees receiving performance appraisal 360 feedback 41% 4% 95% 52% % hired based on a validated selection test 4% 30%
- 22. Tactic: A Consultative Approach A phased, modular, repeatable and iterative process for HR professionals so that customer relationships are enhanced. Strengthen the HR value proposition Create enterprise HR bench strength Manage HR professionals as an enterprise asset
- 23. A Best Practice: HR Consulting Setting the Stage Entering, Scoping, Contracting Diagnosis Determining Action, Planning, Implementation Assessing, Closing
- 24. Skills For each Phase: Structure Challenges A set of consultative skills An Action Learning Activity to transcend the learning
- 25. HR CHALLENGES Focus strategically- act tactically Assessment Develop/apply new measures Audit measures Analyze & report Change planning and implementation Continuous improvement
- 26. A Couple of Closing Thoughts Be careful of yesterday’s success, because success tastes so good it dulls the appetite for risk….. The significant problems in life cannot be solved from the same mode of thinking that created them………
Notas do Editor
- Welcome comment… Introduce self ……. Manage audience expectations………. ASK: What would make the next hour a good use of your time? What would you like to leave here knowing?
- Review NOTE that the practice of “HR” is an important function within any organization. It is also the most dynamic of any enterprise function. Expectations are constantly changing….expectations of the employees, leadership, customers. HR serves ALL enterprise constituencies – people, ‘shareholders” (taxpayers), the leadership of the organization and the customers of the organization. ALSO comment on the audience responses to the question asked on the previous slide and integrate their expectations into the comments
- REVIEW NOTE that typically by the time HR gets invited in the effort is well underway, major decisions have been made and often HR needs to get the enterprise to rethink and undo actions they may have already planned for……clearly HR needs to be at the table for the outset….and we need a business strategy that gets us there!
- But to add additional value the HR professional needs to learn about the business of the enterprise, to become ‘literate’ in the value HR needs to look at itself in a different way than in the past; we need to understand the strategic impact we have across all of our functions – HR planning, comp and benefits, employee relations, legal, training, etc. as well as the short term effect we have. Similarly the enterprise needs to recast its thought process so to use the capabilities and expertise of HR in new and different ways. To be sure our “Shared Services” initiative is a step in that direction. proposition of the organization. Typically, this happens over a long period of time as people grow in their careers with the State. Current demographics are such that significant portions this literacy will need to be replaced over the next 3 – 5 years. The ongoing Workforce Planning initiative is a major component to address that situation. "Wherever you see a successful (business), someone once made a courageous decision.“ Peter Drucker
- REVIEW People are a resource that can be invested in. The data show that that investment provides a very good return.
- To be effective in the current environment HR needs to know as much, if not more, about the ‘business’ of the organization as the business people do. We need to be able to speak the language of HR in the context of the business so that we – HR - can influence the decisions made by the business that impact the people of the organization.
- Organizational effectiveness requires that there be a robust alignment among these 3 items…..3 out of 3…….every day. The strategy and structure are relatively easy to align; the culture much more difficult. Yet, without the alignment of all 3 the performance of the organization will be less than optimal.
- Strategic HR in practice requires a focus on the longer term needs of the organization; typically the horizon is 3 – 5 years out. Individual work efforts are aligned with the goals of the larger organization; people at all levels of the organization see clearly how their daily effort contributes to the goals of the organization - Ben & Jerry’s loading dock example HR processes are integrated into the fabric of the organization and add value to the operation of the business – EG hiring managers have access and can select from a number of qualified people for each vacancy. Integration of the hiring process is based on HR’s knowledge of the SKAs and competencies needed to be successful in the position results in quality candidates. The HR MIS is linked directly to the needs of the organization. EG when our LMS is operational we will be able to link jobs, with competencies, with skills, with training that delivers them and allow people to build a plan to guide their continuing professional development. HR competencies allow thinking outside the box. HR is in tune with emerging trends and changes in trends that will impact the organization. Solutions to these changes are in place before they are needed. HR manages a dashboard of the critical few “people” measures that are most important to the enterprise – examples will be demonstrated later. The notion is that you get what you measure.
- When all this is present HR is indeed a partner – is driving enterprise wide change because it knows that it is the people of the organization that produce the results – good, bad or in the middle.
- Review – let’s chunk HR down a bit…..
- It’s about change and the need to understand that while in the past, change might have been an outlier, it is today a steady state…..
- REVIEW Performance analysis assumes that there are measures in place at each level – people, teams, organization Briefly discuss the value Chain/proposition….Suppliers – Inputs – Processes – Outputs – Customer The vision defines organizational values and is part of a measurement that can drive through an entire organization. It answers the question – “What is important to us?” Mission answers the question – “What business are we in? HR as vital practice in an organization helps to shape the answers to both of these questions.
- REVIEW TRANSITION AS part of the answer we need to look at how HR has changed from its origins and take a peak at where it is headed in the future………
- REVIEW The functions detailed in the slide are not mutually exclusive….they are integrated, build on one another and are required for the ultimate success of the organization They will be detailed in the next 3 slides
- NOTE that in the following 3 slides we are going to take a look at how HR has changed over a number of years….. REVIEW
- REVIEW From a cost perspective we begin to realize that keeping cost to a minimum “PERSONNEL” FUNCTION was often counter productive…..this incubates the notion of value as part of the HR equation Our strategies change from those of being an enforcer of rules to one of deeper relationships driven to the successful operation of the enterprise
- Human Capital = The SKA of the people of the organization PLUS their level of commitment to the goals of the organization. REVIEW The financial focus is here on measuring the return on the investments we make in people – demonstrating that this investment indeed has a payback in terms of higher productivity, reduced expenses, etc. The products and services now include those that are more strategic in their nature, in addition to those that are transactional.
- REVIEW HR FUNCTION - Key on strategic Competencies within the HR function. These competencies include communications and other important skills. The competencies and skills of the HR Professional drive the effectiveness of the HR System which in turn drives the performance of people throughout the organization.
- REVIEW Work from bottom to top. Note how they build upon on another
- REVIEW Ask: Who are the customers of HR? When HR is proactive what does it look like? How does HR mitigate risk today?
- Since 1990 a biannual study printed by HBS Press has measured HR systems and processes in (public) companies in the US. Data on this slide is taken from that study. REVIEW Call attention to qualified hires reflective of process integration and annual training data reflective of an investment by the organization in their people. The LMS will enable us to capture training data ACES & EPRS will help to capture performance feedback data Strategic T&LD plans call for a 360 component in an assessment process and this will be accomplished thru the LMS TRANSITION all of this is predicated on deep, productive relationships with the customers of HR….and an opportunity to equip the HR professional with a broader array of SKAs presents…….
- TRANSITION: HR results are driven in large part by the relationships that exist between the people of the HR organization and the people they serve – their customers. In addition to CRM skills it is increasingly important for HR professionals – seeking a seat at the table – be able to function effectively in a consultative fashion with their customers. By doing this they are adding value, over and above the value of the function, for their customers. The consulting TACTIC is used within and in support of the HR strategies of Focus Alignment Process integration Information management Innovation Measurable results Give a couple of examples if time allows TLD has begun to develop a consulting skills class specifically for HR professionals.
- An effective tactic to deepen the relationship is for the HR professional to add value for the customer in new ways. The consulting process that the class will deliver contains these phases……REVIEW/Discuss briefly
- Review Note that the current concept includes an action learning project that will reinforce the skills learned in the class. This project will be actively supported by an experienced member of the TLD team
- Review NOTE that the tactics include: measures and analysis of results Planning for change as a steady state Methods that result in continuous improvement in human performance
- The first from Alvin Toffler The second from Albert Einstein Thank you! Questions?Were your expectations met?