SHAPING THE ROLE OF HR: Tactics for Strategic Change

SESSION OBJECTIVES  Broaden perspectives  Challenge the conventional wisdom regarding HRM  Peek into the future

Survey Says…..  A recent survey by the Towers Perrin Group revealed that:  50% of HR professionals see themselves as strategic business partners within their organizations  But only 17% of HR professionals say they are invited to participate in the initial stages of major enterprise initiatives

Closing the Gap Requires  A change in mindset  HR  The Enterprise  Continuing to performing the basic functions well  Organizational Literacy  Courageous Leadership

A New Mindset: HR as an Investment, Rather than an Expense  Historically: HR and people were not considered tangible assets. The ‘means of production’ was a machine bolted to the factory floor. People merely operated it.  Today: The intangible of human capital (what people know + their level of commitment to the organization) is the prime driver of organizational results.

A New Paradigm  HR is shifting from focusing on the organization of the business to focusing on the business of the organization

The Goal  The intent of the new HR paradigm is to achieve alignment among the  Strategy  Structure  Culture  of the enterprise.

Strategic HR  Focus  Alignment  Process integration  Information management  Innovation  Measurable results

Strategic HR  Partner  Change agent  Passionate about people as the source of organizational success

The Foundation  Traditional HR Functions  Employment  Compensation  Benefits  Training/Development

Just a Thought If you keep on doing what you’ve always done, you’ll keep on getting what you always got………

Emerging Functions Additional value added:  Multi level performance analysis – people, teams, the organization  Aligning HR process to drive organizational results  HR as a component in the enterprise value proposition, in vision & mission achievement

High Gain HR Questions  How do people create value for the organization?  How does HR contribute to and measure the value creation process?

HR Evolution:Personnel” FunctionsTransactions Compliance Record keeping Financial FocusCost minimized Key StrategiesRule knowledge Process efficiency Products/ServicesPayroll & benefit administration Job descriptions/standards Training Compliance MetaphorThe enforcer ParadigmTechnical correctness

HR Evolution: “Human Resources” FunctionsAdvisory services Problem solving Operational issues Financial focusCost control Key strategiesHR practices Business context Products/servicesRecruiting, Performance evaluation, Payroll, Position management, Employee relations, Training & Development, Risk management MetaphorBusiness Partner ParadigmProcess Improvement

HR Evolution: “Human Capital” FunctionsCapacity building Opportunity identification Strategic issues Financial focusInvestment analysis (ROI) Key strategiesSystems thinking Strategic consulting Products/servicesHuman capital planning, Talent management, Leadership development & succession planning, Performance culture, Competency systems, Metrics MetaphorStrategic Partner ParadigmTransformation

HR Strategic Architecture HR Function HR professionals with strategic competencies to deliver products/services that drive organizational success HR System Performance driven, strategically aligned policies & practices Human Performance Strategically focused competencies, motivation, skills, capabilities

The Strategic HR Model Strategic HR Leadership The HR Value Proposition: Linkage to Results Business Literacy: HR knows the business Doing the ‘basics’ well Know the HRBOK Personal credibility of the HR practitioner

An Emerging HR Mindset  Focused on adding value for the customer  Proactive  Willing to assume risk  Results driven

HR Best Practices HR Practice Measures Bottom 10%Top 10% Qualified applicants per hire837 Annual training hours: Per new employee Per experienced employee % employees receiving performance appraisal 360 feedback 41% 4% 95% 52% % hired based on a validated selection test 4%30%

Tactic: A Consultative Approach  A phased, modular, repeatable and iterative process for HR professionals so that customer relationships are enhanced.  Strengthen the HR value proposition  Create enterprise HR bench strength  Manage HR professionals as an enterprise asset

A Best Practice: HR Consulting  Setting the Stage  Entering, Scoping, Contracting  Diagnosis  Determining Action, Planning, Implementation  Assessing, Closing

Skills  For each Phase:  Structure  Challenges  A set of consultative skills  An Action Learning Activity to transcend the learning

HR CHALLENGES  Focus strategically- act tactically  Assessment  Develop/apply new measures  Audit measures  Analyze & report  Change planning and implementation  Continuous improvement

A Couple of Closing Thoughts  Be careful of yesterday’s success, because success tastes so good it dulls the appetite for risk…..  The significant problems in life cannot be solved from the same mode of thinking that created them………