“HUMAN RESOURCES TRANSFORMATION” THE ROLE OF HR IN CORPORATE TRANSFORMATION: TIPS FOR BAD AND UNCERTAIN TIMES Allan Bukusi

Key References Deloitte learning, 2006 Hewlett Packard, 2007 PwC, HfC Research, 2012 Values Based Leadership for Transformation, research 2013 Transformative CEOs in Kenya, NATION , 2013 How to Lead corporate transformation, 2013

PRESENTATION AIM To update participants on the increasingly changing, evolving and transforming role of human resources leadership in corporate transformation and business survival & success.

COVERAGE What is corporate transformation? Human resources transformation? The role of HR in corporate transformation Tips for good, bad & uncertain times.

CORPORATE TRANSFORMATION Corporate transformation is a process of organization renewal that facilitates the long term survival, sustainability and success of a business. It is enabled by a paradigm shift in leadership thinking or quantum leap in business operations in response to market dynamics, environmental changes and future trends. -HOW TO LEAD CORPORATE TRANSFORMATION

The qualities of a Transforming corporate organization Remains relevant in the market Meets the need of the public (+customers) Provides quality services and products Trains & mentors future leaders “Lives” transformative values (culture) - VALUES BASED LEADERSHIP FOR TRANSFORMATION

DANGERS OF NOT-TRANSFORMING Slide into “irrelevance”, non-responsive organization and business. Frigid bureaucracy & wasteful production. Under performing, under deployed staff. Declining profitability & service delivery. Structural inefficiency & ineffectiveness. -HOW TO LEAD CORPORATE TRANSFORMATION

HUMAN RESOURCES TRANSFORMATION HR Transformation initially focused on making HR operations more efficient and effective through process standardisation and technology. Deloitte , 2006

THE NEXT GEN. HR TRANSFORMATION Tightly linked to corporate strategy Creates business value through HR services that address a company’s most pressing strategic challenges. Anticipates critical workforce trends, Shapes and executes business strategy, identifying and addressing people-related risks and regulations. Enhancing workforce performance and productivity. Offers new HR services to help a company improve and grow. Deloitte , 2006

TRANSFORMING HUMAN RESOURCES HR Challenges Globalization Evolving workforce Evolving (IT) business Virtual management (156,000 staff, x counties & cultures) HR Road to transformation Stuck to core values focus on customer & product growth strategy Cross-functional reporting (marketing officer report to HR manager). HR present on the work front. Eliminating bureaucracy - HEWLETT PACKARD

TRANSFORMING HUMAN RESOURCES Review total reward strategy Leadership team development New operating model for HR Operational efficiency Head count (reduced to minimum cost) Transformational not transactional staff contact (portal) HR leading business transformation Engaging HR people on the business front “Transformational” training programs for all staff - HEWLETT PACKARD

THE QUESTION; IS HRT DRIVING BUSINESS PERFORMANCE? HR focuses on either “business” or “administration”. HR has a strategic role In business development Transformation fails because “transformation” efforts focus on Admin. rather than on skills development to execute vision. PwC, Hfc Global Research, 2012

GLOBAL HR TRENDS The global workforce is evolving. New talent is required (tech savvy). HR executives become substantive organization leaders in times of change. HR Transformation assumes accountability for business success. No “one-size-fits-all-strategy” it must be locally and globally specific. HR is challenged to make transformation real to the business and not an “intervention” like a “systems upgrade”, hiring or retrenchment programs. PwC, Hfc Global Research, 2012

DRIVING TRANSFORMATIVE ORGANIZATIONS IN KENYA Six year rule; Sustained transformative leadership initiative. Growth rule; average 50% annual growth metrics. Employ transformative strategic plans. Strong philosophy, values and customer focused culture. -TRANSFORMATIVE CEOS , ANALYSIS

TRANSFORMATIVE CEO: Advice Develop Business focus Focus on service delivery Develop (organization) systems Develop leaders, leadership (teamwork) -TRANSFORMATIVE CEOs, ANALYSIS

MAJOR LESSONS FOR HR The way work is done & the workforce is evolving. HR is expected provide NEW services and real time business solutions. Expected to provide strategic initiative & lead change. Ensure the organization remains relevant in its environment (keeping pace with the market). “appropriate” core values sustain organization in evolving and dynamic circumstances. Effective (rigid) HR practice can unwittingly cause corporate failure in the medium term.

CORPORATE TRANSFORMATION SUSTAINABLE PURPOSE VALUES AUDIT RESEARCH & DEV. CUSTOMER FOCUS ETHICAL BUSINESS SYSTEMS TRANS. STRATEGIC PLAN TRAINING LEADERS -HOW TO LEAD CORPORATE TRANSFORMATION

HUMAN RESOURCES TRANSFORMATION Align Co. Values Dev. Bus. Sup HR syst. Manage Services. HR Manage Product. Lead Change Train Talent -HOW TO LEAD CORPORATE TRANSFORMATION

TIPS FOR “GOOD, BAD & UNCERTAIN TIMES” Start with understanding the business, not “Retrenchment”, then decide short, medium-term action. Align reward strategy to support pursuit of corporate goals. Position organizations for (future) growth. Align organization values to sustain business performance. Develop “next” generation leadership (demographics) From “Institutional” HR to Business HR Incorporate global outlook in local solutions

Sources Onyango, Cultural gap & economic crisis in Africa, 2010 Kiiru, et al, Successful fundraising,2011 Kirimi & Minja, Transformational corporate leadership, 2012 Bukusi, How to lead corporate transformation, 2013 Burns MJ, Leadership, 1978 Transformative CEOs with golden hands, Sunday nation 30th June 2013 http://www.deloitte.com/view/en_cn/cn/42a8b3d77f1fb110VgnVCM100000ba42f00aRCRD.htm http://www.pwc.com/us/en/people-management/publications/assets/pwc-hfs-hr-transform.pdf http://www.hp.com/hpinfo/execteam/speeches/perezdealonso/07confboard.html http://allanbukusiauthor.blogspot.com/2013/05/what-is-corporate-transformation.html