1. HR trends and beyond:
HR from the outside in
HRMATT
HR Upgraded – v2K13 and beyond
Trinidad
May 2013
Dave Ulrich
dou@umich.edu

2. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
2
Overall Goals
Think:
• What are the
challenges for
today’s
businesses
• How can HR
add value to
employees,
customers,
investors, and
communities
Behave:
• Identify things
that you can do
to further your
HR
contribution
Have Fun:
• Enjoy the
experience
together

3. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
3
HR Trends
Trend Definition
1 HR outside in
We have evolved HR to focus on external conditions and
stakeholders
HR value added
2 Talent
3 Capability
4 Leadership
We invest in HR to deliver value through
• Talent
• Capability
• Leadership
5 HR transformation
We have transformed the HR function to operate efficiently
and/or effectively to match business requirements
6 HR practices
We have innovated, integrated, and aligned HR practices in
people, performance, information, and work
7 HR competencies
We have identified critical competencies for HR professionals
and invested in building them

4. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
4
HR outside in: Evolution of HRHREvolution
Time
HR Administrative Utility
HR Strategy
HR Outside/In
HR Functional Expertise
HR Upgraded –
v2K13 and beyond

5. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
5
HR outside in: HR practices
HR domain Examples of outside in: What this means for us?
Staffing
Are we the employer of choice of employees our customers
would choose?
Training/development
Do we involve customers in designing, attending, and
delivering training and development?
Performance
management
Do our standards for effective performance match customer
expectations?
Rewards
Do we involve our customers (suppliers or investors) in
allocating rewards?
Communication
Do our communication tools link employees and
customers?
Leadership
Have we created a leadership brand where leaders actions
are tied to customer expectations?
Culture
Does our culture have the right events, patterns, and
identity?

6. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
6
HR outside in: HR professionals
What HR outside in means for me?
– Do I see my organization through the eyes of the
customers, investors, suppliers, regulators and
other external stakeholders?
– Am I aware of general business conditions that
affect my industry and organization?
– Do I spend time with external stakeholders?
– Do I align my HR work with expectations of
external stakeholders?

7. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
7HR Outside in:
HR Creates Value to Key Stakeholders
Dealers
Customers
Employees
Investors/
Owners
Line Managers
Key
Stakeholders
Communities/
regulators
Market value
• Financial
performance
• Intangibles
• Risk
Reputational value
• Social responsibility
• Regulatory oversight
• Cultural awareness
Customer share
• Target
customers
• Customer
intimacy
Collaborative
value
• Partnerships
• Outsourcing
Strategic value
• Shaping strategy
• Creating
organization
traction
Employee value/ Productivity
• Competence
• Commitment
• Contribution

8. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
8Assessment:
HR outside in…HR Upgraded – v2K13 and beyond
We focus HR on
administrative
work
We focus HR on
innovative HR
practices
We focus HR on
delivering
strategy
We focus HR on
external conditions
and stakeholders
Ideas for improvement
•
•
•
•
•
low high
31 2 4 5 6 7 8 9 10

9. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
9
HR Trends
Trend Definition
1 HR outside in
We have evolved HR to focus on external conditions and
stakeholders
HR value added
2 Talent
3 Capability
4 Leadership
We invest in HR to deliver value through
• Talent
• Capability
• Leadership
5 HR transformation
We have transformed the HR function to operate efficiently
and/or effectively to match business requirements
6 HR practices
We have innovated, integrated, and aligned HR practices in
people, performance, information, and work
7 HR competencies
We have identified critical competencies for HR professionals
and invested in building them

10. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
10
Roles for HR
Line managers as
Owners
• Fully engaged
• Make final decision
• Accept accountability
• Ensure follow up
HR Professionals as
Architects
• Coach
• Facilitate
• Design
• Deliver

11. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
11
HR value creation: What value does HR create?IndividualAbility
Organization Capability
High
Talent
Workforce
People
Culture
Workplace
Process
Leaders
Leadership
Low
Low High

12. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
12HR value creation: Importance
of talent and teamwork
What percent of the time is the leading scorer (winner of the
Golden Boot) on the team that wins the World Cup?

13. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
13HR value creation: Importance
of talent and teamwork
How many of the 20 “Best Actor/ Best Actress” Academy
Award winners in the last ten years were also in the “Best
Picture” for that year?

14. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
14
What do we mean by “talent”?
C-suite executives:
Succession, customization, teamwork
High potentials:
5-10% of people
5-10% of time
Personal development plan
All
Employees:
Competence
Commitment
Contribution
Leadership cadre: leadership academy

15. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
15
What do we mean by talent?
COMPETENCE COMMITMENT CONTRIBUTION
Talent =
Right person, right
place, right time,
right skills
•Set standard
•Assess
•Invest
•Integrate
Enact an employee
value proposition
•What do I get?
•What do I give?
Create meaning at work
•Identity
•Purpose
•Relationships
•Work environment
•Work itself
•Learning/resilience
•Civility

16. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
16Assessment: HR Value Created
Talent…HR Upgraded – v2K13 and beyond
We recognize
that talent
matters
We have a plan
to improve
talent (C*C*C)
We align talent
investments
with strategy
We build a talent
agenda (C*C*C)
with stakeholders
Ideas for improvement
•
•
•
•
•
low high
31 2 4 5 6 7 8 9 10

17. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
17
HR value creation: CapabilityIndividualAbility
Organization Capability
High
Talent
Workforce
People
Culture
Workplace
Process
Leaders
Leadership
Low
Low High

18. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
18
What is Organization Capability?
Organization
culture or
archetypes
Business
processes
Core competency
Resource
view
of the firm
Organization
Capability

19. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
19
To what ext ent ar e we capabl e of cr eat i ng a cul t ur e
t hat shi f t s f r omevent t o pat t er n t o i dent i t y?
Shared mindset / culture
Event Pattern Identity

20. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
20
Culture as a key capability
Leadership
Brand
Top/down
intellectual agenda
Bottom/up :
behavioral agenda
Side to side
Process agenda
Make identity real to employees
What are the top 3 things we want to be known for
by our best customers (or other key stakeholders)?

21. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
21Assessment: HR Value Created
Capability or culture …HR Upgraded – v2K13 and beyond
We define our
organization as
structure
We improve
work processes
Our organization
structure
matches strategy
Our capabilities
match stakeholder
expectations
Ideas for improvement
•
•
•
•
•
low high
31 2 4 5 6 7 8 9 10

22. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
22
HR value creation: LeadershipIndividualAbility
Organization Capability
High
Talent
Workforce
People
Culture
Workplace
Process
Leaders
Leadership
Low
Low High

23. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
23
HR value creation: The key questions of leadership
Dimension of
Leadership
Question Challenge
Why
Why should I work to improve my
personal leadership and to build
leadership in my organization?
Build the business case
for leadership
What
What do I have to do to be a
better leader or to build better
leadership in my organization?
Articulate the leadership
brand, with both code
and differentiators
How
How do I ensure that what I turn
what I know I should do into what
I do?
Know and accomplish the
seven factors for
leadership sustainability

24. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
24
Leadership Brand:
Shared Theory of Leadership
Leadership Code
(Common)
Leadership
Differentiators
1. What percentage of leadership is basically the same?
2. If there are common rules for any leader, what are they?
LEADERSHIP
BRAND
COMPETENCIES

25. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
25
Leadership Code:
The DNA of Effective Leaders

26. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
26
Levels of branding…
1.Product Brand
2. Firm Brand
3. Leadership Brand

27. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
27
Leadership
Differentiators
Firm
Brand
FIRM BRAND:
What are the top 3 things we want to be known
for by our target customers?
LEADERSHIP DIFFERENTIATORS:
What are the leadership behaviours
that would reflect each firm brand?
•
•
•
•
•
•
•
•
•
Turn firm brand into leadership differentiators

28. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
28Assessment: HR Value Created
Leadership…HR Upgraded – v2K13 and beyond
We appreciate
good leaders
We invest in
building
leadership
We define
what makes an
effective leader
We create a
leadership brand
Ideas for improvement
•
•
•
•
•
low high
31 2 4 5 6 7 8 9 10

29. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
29
HR Trends
Trend Definition
1 HR outside in
We have evolved HR to focus on external conditions and
stakeholders
HR value added
2 Talent
3 Capability
4 Leadership
We invest in HR to deliver value through
• Talent
• Capability
• Leadership
5 HR transformation
We have transformed the HR function to operate efficiently
and/or effectively to match business requirements
6 HR practices
We have innovated, integrated, and aligned HR practices in
people, performance, information, and work
7 HR competencies
We have identified critical competencies for HR professionals
and invested in building them

30. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
30HR transformation: Run the HR function as if it is a
business within a business
Overriding organizational design
principles:
• Differentiate clearly between transactional and
strategic HR work.
• Make the HR organization follow the logic and
structure of the business organization.
• Make the HR organization follow the flow of
any professional service oriented organization.

31. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
31HR transformation:
Start with business strategy
Diverse
business strong
business unit
Single business,
Strong corporate
Matrix: Find balance
of corporate versus
business unit
Decentralized
Centralized
HighLow
Low High

32. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
32HR transformation:
Organization design options
HR
decentralized
organization
(holding
company)
Single business,
Strong corporate
Decentralized
Centralized
HighLow
Low Hig
h
HR community
of practice
HR as
professional
services
HR solutions
center /
process leaders
HR outsourced

33. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
33
HR Trends
Trend Definition
1 HR outside in
We have evolved HR to focus on external conditions and
stakeholders
HR value added
2 Talent
3 Capability
4 Leadership
We invest in HR to deliver value through
• Talent
• Capability
• Leadership
5 HR transformation
We have transformed the HR function to operate efficiently
and/or effectively to match business requirements
6 HR practices
We have innovated, integrated, and aligned HR practices in
people, performance, information, and work
7 HR competencies
We have identified critical competencies for HR professionals
and invested in building them

34. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
34
HR Practices
Performance
Work
People Communication
• Buy ● Bounce
• Build ● Bound
• Borrow ● Bind
• Set standards
• Ensure consequences
- financial
- non financial
• Do feedback
Build communication plan
• Top down
• Bottom up
• Inside out
• Outside in
• Side to side
• Restructure organization
• Reengineer work process
• Manage teams
• Architect physical setting
HR transformation: Align, integrate,
and innovate our HR practices?

35. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
35Assessment:
HR practices …HR Upgraded – v2K13 and beyond
We do HR
practices
efficiently
We have
innovative ideas
in HR practices
We integrate HR
practices to
deliver capabilities
We ensure that our
HR practices meet
external expectations
Ideas for improvement
•
•
•
•
•
low high
31 2 4 5 6 7 8 9 10

36. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
36
HR Competency Study introduction
What are the competencies of HR professionals and how do they
affect:
• The perceived effectiveness of HR professionals
• Business performance
What characteristics of HR departments best predict business
performance?
Research assumptions:
• Partnership with leading HR associations
• Non HR and HR assessment (360)
• Global, cross industry, mixed firm data set
• Longitudinal/predictive data and insights

37. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
37
2012 HR Competencies: Six primary domains

38. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
38What competencies matter to helping drive
business performance?
Competency
Degree to which it
helps achieve personal
effectiveness
(L/M/H)
Degree to which
it helps achieve
business results
(L/M/H)
Current strength of
this competency in
our HR organization
(L/M/H)
Strategic
Positioner
M M
Credible
Activist
H L
Capability
Builder
M H
Change
Champion
M M
HR Innovator
& Integrator
M H
Technology
Proponent
L H

39. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
39
HR Trends
Trend Definition
1 HR outside in
We have evolved HR to focus on external conditions and
stakeholders
HR value added
2 Talent
3 Capability
4 Leadership
We invest in HR to deliver value through
• Talent
• Capability
• Leadership
5 HR transformation
We have transformed the HR function to operate efficiently
and/or effectively to match business requirements
6 HR practices
We have innovated, integrated, and aligned HR practices in
people, performance, information, and work
7 HR competencies
We have identified critical competencies for HR professionals
and invested in building them

40. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
40Assessment:
HR Competencies…HR Upgraded – v2K13 and beyond
We have roles and
competencies for
HR competencies
We assess HR
professionals against
competencies
We invest in HR
professional
development
We ensure that HR
professionals deliver
value to the business
Ideas for improvement
•
•
•
•
•
low high
31 2 4 5 6 7 8 9 10

41. © 2011 The RBL Group© The RBL GroupMay 2013 / HR trends and beyond
41
HR Trends
Trend Implications for me…
1 HR outside in
Learn the external context and stakeholder expectations for
my business
HR value added
2 Talent
3 Capability
4 Leadership
Become aware of and able to implement latest trends in
• Talent: competence * commitment * contribution
• Capability: event… pattern… event
• Leadership: why … what … how
5 HR transformation
Create an HR organization with a mission and structure that
gets work done effectively
6 HR practices
Learn and upgrade HR practices so that your business
creates new practices and HR systems
7 HR competencies
Master the personal competencies of an effective HR
professional; make personal progress