Strategic HR: Becoming More Performance-led Paul Sparrow 29th June 2016

My Agenda For The Keynote Argue that we are seeing a new Organizational Effectiveness context for HR that extends beyond the organization (eg Rolls Royce Aerospace, Shell) Argue that we need to skill ourselves up to deal with horizontal business and service challenges: Becoming more customer centric Enabling innovation Addressing productivity and lean management (think of NHS productivity) Working in partnerships/ collaborations What will this mean for key HR capabilities ?

Centre for Performance-led HR: Over £2 million ($2.82 m) of funding

Business Model Insight & Design Capability Evidencing Performance Outcomes Innovation Customer centricity Productivity & lean Cross-organization Globalization Building Strategic Competence Boardroom Engagement (Golden Triangle) Reconfiguring Talent: Systems & People Employee Engagement From strategy to employee belief Employee Engagement From strategy to employee belief HR Delivery System/ Operating Model Evaluating/ Benchmarking People- Capital (Analytics) 2010 Leading HR: Internal Context The “Looking In Agenda”

General Prognosis for the function of HR  COEs hollowed out, externalising and being joined together in different ways project/ programme functions, organisational effectiveness  Value-adding specialist houses offering discretionary services: HR analytics to Business intelligence function  HR service providers: fewer in number, multi-tower HR-IS-Finance, learned how to manage more than just scale of service, move up the value-chain of services, modularised levels of employee intelligence, direct interface with line managers. Engagement & data technologies become corporate: e.g. crowdsourcing, social media, cognitive maps, enterprise resource planning

HR Faces Horizontal & Non-Functional People- Related Issues: It Should Play For This Space GLOBALIZED DELIVERY PRODUCT- IVITY INNOVATION CUSTOMER- CENTRIC ORGANIZATION DESIGN LEAN PROCESSES PERFORMANCE DRIVERS ENABLERS OF NEW STRUCTURES VALUES WORK E.G. CORPORATE SOCIAL RESPON- SIBILITY ANALYTICS & BUSINESS INTELLIGENCE UNITS; DIGITAL PLATFORMS NETWORKED & COLLABORATIVE BUSINESS MODELS

Designing HRM for Performance Contexts 1. Working in a Collaborative World HRM SOLUTIONS BEING JUDGED BY CUSTOMERS AND SOCIETY AS THEY OPERATE ACROSS THE NETWORK THAT GETS BROUGHT TOGETHER – DOWN SUPPLY CHAIN, ACROSS PARTNERS & COLLABORATORS

Designing HRM Functions & Shaping Talent For Three Challenges Formal and informal governance across partners: structural/ contractual and trust- based Defining risk as systematic risk, partner-specific risk and connection-point risks Managing 6Cs: Co-ordination; Communication; Control; Culture; Capability; Conflict Managing: 1) Velocity at which knowledge must be applied across collaborators; 2) Desire to combine complementary knowledge across partners; and 3) Desire to create new skills and competencies as a consequence of knowledge- sharing.

Designing HRM for Performance Contexts 3. Service-Profit Chain & Customer Centricity Service models embedded within a firm’s organizational capabilities and business approach Internal service quality Customer expectations Organizational image Brand proposition Perceived product or service quality External service value Customer satisfaction Customer loyalty Customer advocacy HRM has to be aligned with complex service models that bring together a range performance factors

HR Analytics !…

The Power of Good Data

2015: Is it Capabilities?

I think we need HR like never before… ! But we need to be much more creative and less possessive about our structure if we are to be seen as adding value to organizational performance…. Thank You!