The document discusses building an effective HR strategy focused on creating value for employees, customers, and shareholders. It recommends that HR transition from a staff to line function to directly increase organizational value. Specifically, HR should design customer-focused strategies from developing a Chief Customer Officer role to growing market value and profits. Additionally, HR's people role includes building employee value, brand, and a customer-centric culture through programs like continuous improvement and customer certification of employees.

1. Building an Effective HR Strategy Gautam Mahajan 6 th August 2010

2. ET: 28 October 2009

3. HRD Strategic role is Building Value Or Adding Value to Non-Customers to Internal Customers to External Customers Employee Value Customer Value Shareholder Value HRD Role

4. CVA vs. Retention EVA vs. Retention is similar

5. Increase in Customer Net Value for 5% Increase in Customer Retention 0 20 40 60 80 100 Software Publishing Office Building Mgt Life Insurance Industrial Distribution Industrial Brokerage Credit Card Branch Bank Deposits Auto Service Auto/Home Insurance Advertising Agency

6. Organisation of the Future CEO Chief Value Creator Customer Value Creator or COO Owner Value Creator or CFO Products & Services Price Marketing Loyalty/Delight Supplier Value Returns on Investment Market Share Costs/Pricing/ Good and Bad Customer segments Future Business/ Strategy Chief Customer Officer Employee Value Creator Customer Value Metrics and Reporting

8. HRD roles