The best practice, principles and process of strategically re-positioning Human Resources Management as a Business Partner

1. PROCESS STEPS TO SUCCESSFUL HUMAN
RESOURCES BUSINESS PARTNERING
(HRBP)
CHARLES COTTER
12 JUNE 2014
PALAZZO HOTEL, MONTECASINO

2. SCOPE OF PRESENTATION
• Defining the fundamental concepts
• Diagnosis of current HRBP organizational practices (health
check)
• Building a business case for HRBP (strategic imperative)
• Business Executives expectations and priorities
• Enablers and critical success factors to transforming/re-
positioning HRBP
• The 5-step HRBP strategy

3. DEFINING THE FUNDAMENTAL
CONCEPTS
• Partnership
• Business Partner
• Strategic Business Partner

4. DEFINING HR BUSINESS PARTNERING
• Partnership: A relationship between individuals or groups
characterized by mutual co-operation and responsibility, for the
achievement of a specified shared goal.
• HR business partners are HR professionals who work closely with
an organization’s senior leaders in order to develop an HR agenda
that closely supports the overall aims of the organization. The
process of alignment is known as HR business partnering.
• Strategic business partners: A long-term relationship (alliance) to
achieve defined objectives common to all partners. In the context
of strategic human resource management, the HR function and
activities are intended to ensure the organization's financial success
and prosperity (business continuity).

5. DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR HRBP
• #1 Embedding HRM strategy in business strategy and able to translate
that strategy into deliverable actions
• #2 Well-defined, implemented and reported HRM performance and ROI
metrics (creating credibility and accountability)
• #3 Generating business intelligence e.g. predictive and strategic analytics
(that shapes, informs, guides and ultimately, influences strategic business
decisions)
• #4 Offering a professional, value-adding business proposition sensitive
to and supportive of business needs, interests and strategic priorities
• #5 Ongoing line management consultation, engagement, coaching and
building trusting, collegial and mutually beneficial business relationships

6. DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR HRBP
• #6 HR Management and practitioners possess business and
industry knowledge, acumen and insight
• #7 HRM collaborates with line management to broker
meaningful and impactful business solutions
• #8 HRM processes, systems and practices are horizontally
integrated (bundled), agile, responsive and stream-lined (that
enhance productivity and efficiency)
• #9 HRM is a transformational initiator, driver and implementer
of business change
• #10 HRM is technology-savvy innovator, enabling and leveraging
best practices (e.g. CoE; Shared Services and e-HRM)

7. RESEARCH-BASED HRBP MATURITY
(HAY GROUP)
• Only 34% believe HR is making a significant
strategic contribution to their organization; the
majority (60%) positioned themselves
somewhere in the middle
• Only 36% say talent management and
organizational effectiveness are closely aligned
• Slightly more than 39% say they have moved
away from traditional silos, but this leaves 61%
that haven’t – or worse still, are unsure.

8. RESEARCH-BASED HRBP MATURITY
(OTHER)
• Research shows that HR business partners
have a presence in 43% of high-performing
organizations (i4cp)
• The 2013 Global Assessment Trends Report
(GATR) - SHL.com found that 41% of firms
surveyed are confident that their human
capital strategy is properly embedded in their
organizational strategy.

9. STRATEGIC IMPERATIVE OF HRBP:
QUOTES
• “As market demands continue to change, organizational success will hinge on HR’s
ability to connect human capital decisions with business strategy. HR will need to
stop clinging to traditional processes and inefficient silos and move toward an
integrated approach that links work and people to business results. Such change
is critical if HR is to transition to its rightful place of strategic business partner.”
(Phil Johnson, Hay Group’s global head of work measurement)
• “If the HR role in an organization is not transforming itself to align with forward
thinking practices, executive leadership must ask HR leaders some tough
questions. Today’s organizations cannot afford to have an HR function that fails to
contribute to and lead modern thinking.” (Erna Oldenboom, Director of the “HR
As A Strategic Business Partner Programme”, UCT Graduate School Of Business)
• “Business Partners also need to play a leading role in influencing key business
decisions and managing people-related risk and compliance whilst continuing to
focus on innovative responses to the talent challenges that we experience in
South Africa. “ (Deloitte, 2013)
• “Valuable HR Business Partnering is about delivering tangible outputs that
support the achievement of shared business goals.” (Deloitte, 2011)

10. REALITY CHECK
• The business context within which HRBPs operate has
changed radically.
• The extreme conditions, competition and need for
lower costs have had multiple effects on organizations
and the work of HR.
• V-U-C-A
• VUKA! (Wake up, Come Alive!)

11. EXPECTATIONS AND PRIORITIES OF
BUSINESS EXECUTIVES
• CEO’s expect the Human Resources function to play a much
more active and participatory role in enabling business
strategies.
• Senior business leaders consider talent to be perhaps the
critical factor in the push for sustainable growth and the
need to manage new opportunities and risks in a more
complex and interdependent world.
• According to The Conference Board CEO Challenge (2013),
Human Capital is rated 10% higher than operational
excellence as a major challenge for businesses.

12. WHAT BUSINESS EXECUTIVES ARE
LOOKING FOR IN HRBP?
• Catalytic Driver of Change
• Pro-active Business Thinker
• Collaborative Consultant
• Purpose-directed Coach
• Delivery (results-oriented HR practices)
• (Credible and Accountable) Performance Advisor
• Strategic Facilitator

14. ENABLERS OF TRANSFORMATION/RE-POSITIONING TO
HRBP – “RIGHTING THE SHIP”
• “HR needs to follow the right process, applying the right skills, in
the right manner/method, fulfilling the right roles, for the right
reasons, to achieve the right results.” (Cotter, 2014)
 Competencies
 Roles
 Process
 Trends
 Critical Success Factors
 Approach

15. ULRICH’S SIX COMPETENCIES FOR HR
TRANSFORMATION (2009)
• Credible Activist
• Strategic Positioner
• Capability Builder
• Change Champion
• HR Innovator and Integrator
• Technology Proponent

16. BEST PRACTICE HRBP
(COMPETENCE)
HRM
CONTENT
BUSINESS
CONTEXT
HRBP
PROCESS

17. (TRADITIONAL) ULRICH’S 4 STRATEGIC
ROLES (1997)
• Strategic Partner
• Administrative Expert
• Change Agent
• Employee Champion

18. (CONTEMPORARY) PENTAGONAL
STRATEGIC VALUE-ADDING ROLES
• Self Mastery
• Relationship Management
• HR Expertise
• Business Acumen
• Execution

19. FUTURE-FOCUSED ROLES

20. HRBP TRENDS
• Optimization of systems, processes and structures (architecture)
• Re-organizing HR service delivery and operating models e.g.
Shared Services
• Sourcing “Stars” from outside HRM
• Implementation of HR Academies and Business Partner training
programmes
• There is a particular focus on developing consulting, project and
change management skills as well as general business and
commercial acumen
• Establishing HR Centres of Excellence/Expertise (CoE’s)

21. HR CENTRES OF EXCELLENCE

22. HRBP CRITICAL SUCCESS FACTORS
• Strategic focus and thrust (on issues that contribute to business growth
and competitiveness)
• Adopting a “big picture” perspective (regarding the organization’s
priorities and goals)
• Having personal impact and credibility (to influence key decision-makers)
• Adopting an Key Account Management, (internal) client-centric approach
• Possessing a set of value-adding skills and knowledge (customers and
business)
• Being a diplomat and negotiator (in harmonizing the HRM agenda with
business needs)

23. HARMONIZATION OF HR AGENDA
AND BUSINESS GOALS
1. STRATEGIC BUSINESS GOALS
AND PRIORITIES
= BUSINESS
IMPACT AND
RESULTS
3. FORMULATION OF HRM
DELIVERY TARGETS
2. HR AGENDA
AND
PROGRAMMES

24. HRBP STRATEGY APPROACHES
• Best Practice
• Best Fit
• Hybrid (integration)

26. STRATEGIC ACTION STEPS/PLAN TO
TRANSFORM HR INTO HRBP
• Step 1: Strategic Review and Analysis
• Step 2: Strategic Role Clarification and Contracting
• Step 3: Formulation and Development of
Transformational Strategies
• Step 4: Implementation of Transformational Strategies
• Step 5: Measure and evaluate business impact and
results

27. STEP 1: STRATEGIC REVIEW AND ANALYSIS
• Objective: The focus of the analysis should be on understanding the
needs of the business as a sustainable entity, its strategic direction
and identifying initiatives that will help your business grow.
• Review of current HRM and business strategies
• Identification of resources and capabilities
• Tools:
 Environmental scan (PESTEL)
 Gap Analysis
 S-W-O-T Analysis

28. STEP 2: STRATEGIC ROLE CLARIFICATION AND
CONTRACTING
• Objective: The concluding of Service Delivery
Agreements with line/operational and
senior/executive management
• Consultation, engagement and communication with
operational management
• Clarification of expectations, needs and value-adding
roles of HRBP
• Contracting agreements

29. STEP 3: FORMULATION AND DEVELOPMENT OF
TRANSFORMATIONAL STRATEGIES
• Objective: Development of HRBP transformation strategic plan
• Formulation of goals and objectives
• Development of alternative transformational strategies
• Choice of most appropriate strategies
 Viability
 Feasibility
 Sustainability

30. STEP 4: IMPLEMENTATION OF
TRANSFORMATIONAL STRATEGIES
• Project-based, cross-functional team approach
• Organizing, assigning and deploying resources
• Leading and directing (the implementation
process)
• Monitoring and Controlling

31. STEP 5: MEASURE AND EVALUATE BUSINESS
IMPACT AND RESULTS
• Measure and calculate the ROI
• Aspire to continuous improvement processes
• Amend and review strategies (remediation
action)
• Report back to business partners (to
demonstrate transparency and accountability)

32. SUMMARY
• Key points
• Questions

33. CONTACT DETAILS
• CHARLES COTTER
• 084 562 9446
• charlescot@polka.co.za
• LINKED IN
• TWITTER: Charles_Cotter