Real innovative reserves hide in the "corporate frontier-land" between HR and almost all other functions. Find out what HR can learn and offer in exchange...and making better use of exsisting corporate assets. No costly investment needed - smart innovation can add surprising value.

1. HR ”frontiers”: Snapshot idea
• HR is getting defensive / stuck due to external and
internal reasons
• Instead of re-thinking its role on its own, it is
suggested to explore and extend frontiers, jointly
with other corporate functions for breakthrough
innovation
• Knowledge exchange will essentially lead to
innovation: not necessarily the ones we imply
today. The journey is what we can manage / kick
start, not the final outcome

2. Quick Inventory :
examples of existing frontiers to
explore for HR with…
• Compliance: Governance-transparency, Diversity, CSR, ethics
• Finance: VBM-Shareholder value creation, predictive modeling, risk
management, shareholder expectation mgt
• IT- competitive intelligence, business intelligence, process automation
• Logistics /Supply chain Mgt: service centers, process integration, KPIs
• Legal: risk management, scenario planning, disaster recovery
• Marketing: current and future employee segmentation, employer
branding, network research
• PR: CSR, internal brand consistency, change communication
• Research: active experimentation, best practice share, speed-to-market
• Sales: key talent account management, client feedback mechanisms
• Strategy: growth sourcing, M&A deals- DD and PMI, organizational
agility

3. Priorization matrix – tentative scores*
depends highly on industry setting and company specifics
1 low - Potential Colaborative Ease of Score / Rank
10 high impact history implementation
Finance & Asset 8 6 7 1
mgt.
Strategy & 8 6 6 2
business mgt.
Sales & Account 6 2 7 3
Mgt.
Governence, legal 7 4 3 4
& Compliance
Marketing 7 5 6 5
Suppy Chain 5 4 7 6
Mgt & logistics
Operations & 4 3 5 7
production
IT - IS 4 7 8 8
Public & Gov’t 3 7 9 9
relations
R&D 4 3 5 10
Real Estate & 2 5 6 11
infrastructure
* Based on series of interviews with non HR corporate officers – but not representative sample

4. How it brings the shareholder value
a natural link to VBM
HR and
HR and HR and HR and
Finance / Legal
Sales / Marketing IT / Supply Chain Mgt Strategy / Board
To work on
To work on To work on To work on
Intellectual Asset Mgt
Talent Account Mgt Service Centers Leadership and
Risk identification
& Employer Brand & Processes transparency
and Mgt.

5. How to exploit?:
suggested work method tips
• Promote rotation schemes or direct exchange: get to
mutually understand the details of diverse best practices by
functions
• Prioritize and create business case for the top ideas to
implement – see priorization table and self test tool
• Create a mixed sponsorship council to review impact and
progress
• Create mixed work teams to play with “cross fertilized”
ideas – see shortlist
• Figure out incentives for cross functional collaboration
• Get ONE done in 3-6 months to bring more appetite
• Do not over-engineer> innovation is not by order

6. Tool snapshot
HR COLLABORATIVE SELF ASSESMENT TOOL
SORE KEY: done 4 working 3 planned 2 aware 1 not aware 0 TOTAL SCORE:
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Does HR collaborate with
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them to…
&
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1. ...acquire new customers
...retain and grow current
2. customers?
…leverage income
3. generating assets?
……improve cusomer
4. interaction efficiency?
…improve efficiency of
corporate / shared
5. services?
…improve product
development and
6. production?
…improve logistics,
distribution or service
7. value?
…enhance asset
8. efficiency?
…improve management
and governance
9. efficiency?
…improve execution
10 capabilities?
SCORE

7. Quick self test tool 1 HR on self
(HR chances with other functions)
• 0-100 significant „Greenfield” opportunity
for co-innovation
• 100-200 reasonable opportunities in few
major domains
• 200- Very targeted, carefully selected or
limited opportunities exist

8. Quick self test tool 2- others on HR
(specific function on HR eligibility)
• 0-10 huge „Greenfield” opportunity for
co-innovation
• 10-30 reasonable opportunities in few
major domains
• 30- Very targeted, carefully selected or
limited opportunities exist

9. H R in H R out
F in a n c e o L ic e n se o r se ll in te lle c tu a l o A lig n M & A stra te g ie s w ith
c a p ita l b u sin e ss o b je c tiv e s
o S e ll o r le a se e x c e s s c a p a c ity o In c re a se fo c u s o n d e v e lo p in g
(p ro d u c tio n , d istrib u tio n , a n d p ro te c tin g in te lle c tu a l
sa le s, e tc .) c a p ita l
o D iv e s t n o n -p e rfo r m in g a n d o M a n a g e p a yro ll ta x im p a c ts
n o n -stra te g ic b u sin e ss u n its o f b u sin e s s in itia tiv e s (M & A ,
o In c re a se e m p h a sis o n c o n so lid a tio n , re stru c tu rin g ,
g e n e ra tin g e v e n u e fro m re lo c a tio n e tc .)
c o m p a n y a sse ts (i.e . re a l o Im p ro v e sk ills o f fin a n c ia l
e sta te , IP , e tc .) m a n a g e m e n t sta ff
o In c re a se fo c u s o n b u sin e ss o Im p ro v e in c e n tiv e s a ro u n d
Va in sig h t a n d fo rw a rd -lo o k in g
in fo rm a tio n
fin a n c ia l m a n a g e m e n t
e ffic ie n c y
lue o I m p ro v e fin a n c ia l ris k
m a n a g e m e n t p ro c e sse s
o U tiliz e ta x -e ffe c tiv e
c o rp o ra te stru c tu re s fo r
Co Pro
o I m p ro v e b u sin e s s c a se
d e v e lo p m e n t a n d a n a ly s is
o w n e rsh ip /lic e n sin g o f
in ta n g ib le a sse ts (p a te n ts,
ntr p ro c e sse s tra d e n a m e s, IP , e tc .)
act posi
o I m p ro v e m a n a g e m e n t o f o Im p ro v e c o m m u n ic a tio n
tra n s fe r p ric in g a ro u n d im p ro v e m e n t
o U tiliz e ta x -e ffe c tiv e p rio ritie s
- e tion
c o rp o ra te stru c tu re s fo r o In c re a se fo c u s o n s ta k e h o ld e r
o w n e rsh ip /lic e n sin g o f R e la tio n sh ip s Im p ro v e
xam / in ta n g ib le a sse ts (p a te n ts,
tra d e n a m e s, IP , e tc .)
o I m p ro v e m a n a g e m e n t o f
u tiliz a tio n o f in te lle c tu a l
p ro p e rty
o In c re a se e m p h a sis o n
ple tra n s fe r p ric in g
o In c re a se fo c u s o n m a n a g e ria l,
fo r w a rd lo o k in g in fo rm a tio n
o In c re a se fo c u s o n ris k
le v e ra g in g stra te g ic a s se ts
o D e v e lo p a n d le v e ra g e
in te lle c tu a l c a p ita l
(c o p yrig h ts, p a te n ts,
m a n a g e m e n t a n d re g u la to ry tra d e m a rk s, e tc .)
c o m p lia n c e o Im p ro v e a sse t d e v e lo p m e n t
o In c re a se fo c u s o n sk ills o f m a n a g e m e n t a n d
S ta k e h o ld e r R e la tio n sh ip s sta ff
o In c re a se fo c u s o n s tra te g ic o Im p ro v e in c e n tiv e s a ro u n d
a sse ts (in te lle c tu a l p ro p e rty, a sse t d e v e lo p m e n t
e tc .)
o In c re a se e m p h a sis o n
le v e ra g in g stra te g ic a s se ts

10. Why? What’s in it for stakeholders?
• The business gets new sources of internal growth – not
capital but innovation intensive
• The business re-uses intellectual capital already created in
new contexts (asset efficiency)
• People get new, interesting and engaging assignments,
giving room to creativity, and building bond
• HR prestige and business credibility improving thru
business critical projects and collaborative efforts
• HR gets out of “stuck” status, particularly in crisis
environment – best defense is rush ahead