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Leaving the tunnel:
how HR can help to re-innovate the company

Ralf Wetzel, Regina Regenass, Mia Vanstraelen
Focus




1. How companies forget to innovate


2. The HR function: Within or without the tunnel?


3. How to turn the tunnel into a tower



© Vlerick Leuven Gent Management School
                                          2
1 How companies forget to innovate: examples




© Vlerick Leuven Gent Management School
                                          3
1 How companies forget to innovate: the logic of the tunnel




                                                  Sydow / Schreyögg / Koch 2007
© Vlerick Leuven Gent Management School
                                            4
2 HR function - inside or outside the tunnel?




                               The HR Business Partner (based on Dave Ulrich, 1997)
© Vlerick Leuven Gent Management School
                                                                    5
2 HR function inside the tunnel?


     Service orientation to line          Fragmentation of
     departments                          observation

                                          lacking sovereignty in
    Rated by internal clients
                                          expressing own perspectives

    Execution of business                 lacking influence in shaping
    strategy                              strategies


   HR as part of the ‚forgetting game‘:
   Unconscious strengthening of organizational tunnels

© Vlerick Leuven Gent Management School
                                                    6
2 HR function inside the tunnel?
 Item (Human Resource Competency Survey, Ulrich et al. 2008: 191)   % Impact
 Ensure that HR strategy turns business goals into HR priorities 9%
 Have an HR strategy that links HR practices to business            10%
 strategy
 Use empirical research to identify best HR practices               7%
 Ensure that organization structure of HR is consistent with the 13%
 business strategy
 Create a workforce scorecard                                       5%
 Track employee engagement                                          6%
 Build the capability of the HR department to add greater           8%
 value

                                          reactive strategy


© Vlerick Leuven Gent Management School
                                                              7
2 HR function outside the tunnel?

     Collects broad range of ‚rich‘ information (sleeping paths)



    Connects operational with strategic levels



    Supports and allows contact and communication




     = Rich foundation for reflecting organizational tunnels


© Vlerick Leuven Gent Management School
                                                 8
3 Turning the tunnel into a tower

 Baseline: Re-think the organization & reflect tunnels by:

 •         Reframe & re-analyze given information: use the
           constructivity of conflict!
 •         Connect separated communities of the company!


                                                             Regina Regenass

 •         Turn around ways of action: shape companies
           innovation strategy!
 •         Introduce external perspectives: customers,
           investors, communities!
                                                             Mia Vanstraelen


© Vlerick Leuven Gent Management School
                                                         9

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HR Innovation: Ralf Wetzel

  • 1. Leaving the tunnel: how HR can help to re-innovate the company Ralf Wetzel, Regina Regenass, Mia Vanstraelen
  • 2. Focus 1. How companies forget to innovate 2. The HR function: Within or without the tunnel? 3. How to turn the tunnel into a tower © Vlerick Leuven Gent Management School 2
  • 3. 1 How companies forget to innovate: examples © Vlerick Leuven Gent Management School 3
  • 4. 1 How companies forget to innovate: the logic of the tunnel Sydow / Schreyögg / Koch 2007 © Vlerick Leuven Gent Management School 4
  • 5. 2 HR function - inside or outside the tunnel? The HR Business Partner (based on Dave Ulrich, 1997) © Vlerick Leuven Gent Management School 5
  • 6. 2 HR function inside the tunnel? Service orientation to line Fragmentation of departments observation lacking sovereignty in Rated by internal clients expressing own perspectives Execution of business lacking influence in shaping strategy strategies HR as part of the ‚forgetting game‘: Unconscious strengthening of organizational tunnels © Vlerick Leuven Gent Management School 6
  • 7. 2 HR function inside the tunnel? Item (Human Resource Competency Survey, Ulrich et al. 2008: 191) % Impact Ensure that HR strategy turns business goals into HR priorities 9% Have an HR strategy that links HR practices to business 10% strategy Use empirical research to identify best HR practices 7% Ensure that organization structure of HR is consistent with the 13% business strategy Create a workforce scorecard 5% Track employee engagement 6% Build the capability of the HR department to add greater 8% value reactive strategy © Vlerick Leuven Gent Management School 7
  • 8. 2 HR function outside the tunnel? Collects broad range of ‚rich‘ information (sleeping paths) Connects operational with strategic levels Supports and allows contact and communication = Rich foundation for reflecting organizational tunnels © Vlerick Leuven Gent Management School 8
  • 9. 3 Turning the tunnel into a tower Baseline: Re-think the organization & reflect tunnels by: • Reframe & re-analyze given information: use the constructivity of conflict! • Connect separated communities of the company! Regina Regenass • Turn around ways of action: shape companies innovation strategy! • Introduce external perspectives: customers, investors, communities! Mia Vanstraelen © Vlerick Leuven Gent Management School 9