Human Resources as a Strategic Partner Fred Laquinta AtlantiCare January 2004

How is H.R. Strategic? Must impact one or more corporate goals - Build competitive advantage. Build competitive advantage. Increase revenues or cut costs. Increase revenues or cut costs. Increase market share. Increase market share.

How is H.R. Strategic? Improve customer service, product, quality. Improve customer service, product, quality. Reduce product time to market. Reduce product time to market. Increase productivity. Increase productivity. Increase shareholder/stakeholder value. Increase shareholder/stakeholder value.

An Example at AtlantiCare 1. Equitable health care 2. Promote health of populations 3. Best in class 4. Integrate the system 5. Financial strength

How H.R. Will Respond 1. Equitable health care Cultural diversity Cultural diversity 2. Promote health of populations Wellness initiative Wellness initiative 3. Best in class Baldrige Baldrige Fortune 100 best companies Fortune 100 best companies

How H.R. Will Respond 4. Integrate the system Flatter organization Flatter organization 5. Financial strength Spend dollars wisely on good programs. Spend dollars wisely on good programs.

Now That You Have Defined It, What Do You Do? Operationalize the definition. Operationalize the definition. Assess your response using the following common elements. Assess your response using the following common elements.

Common Elements Increase productivity and profit. Provide programs and services that result in measurable increase in employee productivity. Provide programs and services that result in measurable increase in employee productivity. Build a strong business case outlining its dollar impact. Build a strong business case outlining its dollar impact.

Common Elements External focus Redistribute H.R. budget and time allocation. Redistribute H.R. budget and time allocation. Look at your calendar. Look at your calendar. Prioritize customers. Prioritize customers. Add, cutback, eliminate H.R. programs based Add, cutback, eliminate H.R. programs based on ROI. Track shifts in external environment. Track shifts in external environment.

Common Elements Build a performance culture that ensures that managers, management systems, measures and rewards work in unison.

Common Elements Provide competitive advantage. We Do/They Do We Do/They Do People programs whose output or results are superior to competitors. People programs whose output or results are superior to competitors.

Common Elements Fact-based decisions Utilize metrics. Utilize metrics. Proactively identify potential problems. Proactively identify potential problems. Discount opinions. Discount opinions.

Common Elements Business focus Ensure programs and efforts focus on the business rather than (Internal) H.R. issues. Ensure programs and efforts focus on the business rather than (Internal) H.R. issues.

Common Elements H.R. should build a brand. Great place to work Great place to work Employer of choice Employer of choice Need for stable funding Need for stable funding

Common Elements Technology permeates everything. Cornerstone of all we do Cornerstone of all we do Metrics Metrics Paperless Paperless 24/7 manager and employee 24/7 manager and employee self serve

Thinking Strategically is a Goal but Remember “H.R. is a tool, not an objective.” “H.R. is a tool, not an objective.” The most effective H.R. programs are those not seen as H.R. programs. The most effective H.R. programs are those not seen as H.R. programs.

But the “Real World” Dictates It is difficult to have a strategic impact on payroll or benefits administration. It is difficult to have a strategic impact on payroll or benefits administration. Even if your job isn't strategic, thinking strategically can improve focus on your programs. Even if your job isn't strategic, thinking strategically can improve focus on your programs. Think like a CEO. Think like a CEO. Wayne Tarken, SPHR HR/CEO Roundtable Chair

Wayne Suggests You…. Run department like a business unit. Run department like a business unit. Know department’s strengths and weaknesses. Know department’s strengths and weaknesses. Know what you can and cannot do given your talent. Know what you can and cannot do given your talent. Understand realities of politics and resources. Understand realities of politics and resources. Delegate whenever possible. Delegate whenever possible.

The Tipping Point The phenomenon underlying social, cultural and financial epidemics The phenomenon underlying social, cultural and financial epidemics What qualities make a trend tip into an epidemic? What qualities make a trend tip into an epidemic? How can you cause a tipping point in how people view H.R? How can you cause a tipping point in how people view H.R? Gladwell, Malcolm. The Tipping Point. New York: Little, Brown and Company, First Back Bay paperback edition, January 2002

So Now What? Go Back to your office and – Be more hands-on “the business”, less hands-on “the people.” Be more hands-on “the business”, less hands-on “the people.” Seek diverse points of view. Seek diverse points of view. Drive unified action. Drive unified action. Promote experimentation, take chances if your organization allows it. Promote experimentation, take chances if your organization allows it. Lee Hecht Harrison – “Leadership at the Core and on the Edge” Newsletter, 2003

Your Challenge - Flexibility Consider the Panda. Consider the Panda. You may be uncomfortable or scared. You may be uncomfortable or scared. It is mentally easier not to change. It is mentally easier not to change. Without flexibility we are restricted to our box. Without flexibility we are restricted to our box. Inflexibility is the major barrier to change and growth. Inflexibility is the major barrier to change and growth. Be open – thoughts, behaviors, feelings Be open – thoughts, behaviors, feelings CD Stewart – ” Behavioral Observations” - Newsletter, 11/25/01

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