1. Innovative HR
Innovative HR in the UK Civil Service Deborah Crewe, Modernising People Management

2. The context…
HR is currently decentralized in departments, agencies and NDPBs
The centre provides strategic direction and guidance, supports and challenges departments to improve, and delivers a small number of central services, focusing on
Improving leadership capacity
Upskilling the workforce
Making the HR functions effective
Aligning reward to performance
Changing the shape of the workforce

3. The drivers for change…
The delivery agenda:
“We are proposing to put an entirely different dynamic in place to drive our public services: one where the service will be driven not by the managers but by the user – the patient, the parent, the pupil and the law abiding citizen” The Rt. Hon. Tony Blair, MP July 2004
Delivery ultimately depends on enabled, engaged and capable people
Employment costs = 58% of expenditure
Budget constraints lead to more emphasis on employee contribution to deliver

4. Studies show that effective HR is pivotal to business performance
“It is the quality of an organisation’s people management that d
etermines
its real success or failure”
(RBS)
Best 100 companies
to work for
FTSE all share index
Comparison of shareholder value between the Sunday Times best
companies to work for (2005)
and the performance of the FTSE all share index
200
160
120 80 40
“There is overwhelming evidence of a direct link between the success of an organisation and the quality of its people management” Dave Ulrich

5. HR has to be good at five things to fully support the delivery agenda
Measurement of Impact of HR on the Business
HR Must:
Execute strategy
Manage change
Maximise the contribution of employees
Be low-cost and efficient in delivering transactional services
Measure the impact of HR and people on the business performance
HR Leadership
& Policy
Change
Maximise Employee
Contribution & Experience
HR Administration

6. HR functions have made progress to meet this challenge in a number of areas
Areas of progress
A shared direction of travel
All departments working on HR Transformation plans
Progress with business partnering
Building shared services
Building capability
Recruiting outsiders
Development of insiders
Setting PSG standards
Energising the HR community
Measuring HR and benchmarking
Improving HR / staff ratios

7. Shared direction of travel: the Ulrich model
Strategic partner
Change agent
Administrative expert
Employee champion

8. But the HR function needs increased ambition for its contribution
The current focus in HR is largely restricted to cost reduction. This is
very necessary and makes HR more cost-efficient but does not, on its own,
have significant impact on the achievement of delivery objectives.
In addition to driving down the cost of HR, departments need to excel at improving the impact of people management on delivery objectives.
This means:
Focusing HR on those activities which add value and impact on the business
Line and HR working together to execute strategy, maximise the employee contribution and manage change effectively
Measuring for the impact of people on the achievement of delivery objectives
The key focus of a HR function must be on improving the
performance of the organisation.

9. HR Function Scorecard > People Management Scorecard
To help meet this challenge, HR functions have to “mature” in four dimensions
Operational Excellence and Service Quality
Enabling Business Change
Alignment with Strategy Execution
Informing
Strategy
Choices
HR defines and achieves excellence in operational efficiency and service quality
HR refines its policies, services and skills for maximum effect on specific business outcomes
People are recognised as drivers of the achievement of the key business-targets
HR informs the organisation’s ambition and “customer”-facing strategy
Excellent / consistent practice in all key HR processes and relationships with users
Understands/practises how to use HR to influence business and operational outcomes
Integrates People Plans into ‘business’ planning and budgeting processes
Workforce effectiveness that gives sustained performance
Cost per transaction
Cost per employee
Timeliness
Accuracy
Employee experience
Headcount Management
Attendance Management
Skills gaps
Leadership gaps
Quality performance management
Engagement
Transfer of learning
Human capital readiness
Organisational capital readiness
From two years
From three years
From five years
Description
HR focus
Sample
Metrics
Current HR
focus
Indicative
timescale
HR Function Scorecard > People Management Scorecard

10. There is much for the HR functions to do
Areas for future attention
Sharing what an effective HR function is
Creating intelligent customers
Building people management outcomes into performance management
Embedding professional standards
Executing shared services and HR business partners
Building line capability
Improving readiness of workforce to deliver
Measuring strategic outcomes
Enhancing ability to manage change
Refreshing HR function measurement

11. Professional Skills for Government : developing the skills and experience for 21st century services across all Civil Service.

12. HR professional standards
Knowing the business – understanding the organisation and how HR can best contribute to its success
Demonstrating HR expertise – understanding and delivering suitable HR practices for the organisation which lead to organisational success.
Acting as a change agent – making organisational change happen
Building personal credibility – personally demonstrates the organisation’s values, builds trust with partners in the organisation, and proactively contributes to organisational success.

13. The HR Transformation Directorate can accelerate progress
HR Transformation Team offering
To follow
A viable contact strategy targeted on what gives greatest potential
for value add in the most efficient way
and sustaining a professional HR Community
How to
measure HR
effectiveness
How to build HR
Professionalism
Ensuring Value
& Delivery led HR Transformation
Signposting
access to
learning
from others
Toolkits
How to unlock
barriers to HR
Transformation

14. Innovative HR
Innovative HR in the Civil Service Deborah Crewe, Modernising People Management