1. Moving from Cost Center to Strategic Business Partner Clint Tripodi

2. The Evolution of HRM. The Evolution of HRM. HR as a Cost Center... Why Should I Care? HR as a Cost Center... Why Should I Care? Kill the Status Quo. Kill the Status Quo. Becoming Strategic. Becoming Strategic. Asking the Right Questions. Asking the Right Questions. Traits of Successful Strategic HR Leaders. Traits of Successful Strategic HR Leaders. April 29, 20142 Overview of the Session

3. Last Year, Zappo’s CEO, Tony Hsieh Decided to add a Fourth ‘C’ to Zappo’s Brand of Clothing, Customer Service, and Company Culture. Last Year, Zappo’s CEO, Tony Hsieh Decided to add a Fourth ‘C’ to Zappo’s Brand of Clothing, Customer Service, and Company Culture. April 29, 20143 What Would You Have Done? ▫The Fourth ‘C’ is Now Community.

4. April 29, 20144 When and How Would HR’s Involvement Bring the Greatest Business Value with this Scope of Decision and Change? When and How Would HR’s Involvement Bring the Greatest Business Value with this Scope of Decision and Change? What Would You Have Done?

5. April 29, 20145 1890’s - 1913 “Welfare Officer” “Labour Manager” “Personnel Management” “Human Resource Management” “Strategic Business Partner” 1914 - 19391940 - 19791980 – 1990’s2000 & Beyond Evolution of HRM

6. April 29, 20146 HR Model for 2014+ Structure - Identifying and Developing Roles and Responsibilities to Execute Strategies.

7. April 29, 20147 HR Model for 2014+ Processes – Utilizing Best Practices to Achieve Predictable Business Results.

8. April 29, 20148 HR Model for 2014+ Talent – Attracting, Aligning, Developing and Retaining the Right People to Execute Your Business Strategy.

9. April 29, 20149 HR Model for 2014+ Metrics – The Ongoing Performance Indicators that Drive Business Success.

10. April 29, 201410 HR Model for 2014+ Strategy – The Data Driven Plans Designed to Help You Compete in Current and Future Markets.

11. April 29, 201411 HR Model for 2014+ Improving Bottom Line Performance Top Line Growth People Systems Strategy Structure ProcessesTalent Metrics

12. What Gets in the Way of Being Strategic? April 29, 201412

13. You Must Believe You Are Worthy Courage: To Be Imperfect. Courage: To Be Imperfect. Compassion: Be Kind to Yourself and to Others. Compassion: Be Kind to Yourself and to Others. Connection: As a Result of Authenticity, Be Who You Are, Not Who You Think You Should Be. Connection: As a Result of Authenticity, Be Who You Are, Not Who You Think You Should Be. April 29, 201413

14. Vulnerability is the Birthplace of… April 29, 201414

15. Becoming Strategic… Start Testing the Roots of Your Vulnerability. Start Testing the Roots of Your Vulnerability. Challenge Your Creativity. Challenge Your Creativity. Seize the Opportunity: Take Control & Act Now! Seize the Opportunity: Take Control & Act Now! Think Like a Business Person First. Think Like a Business Person First. Perfect Market Conditions for New Ideas. Companies Need Our Guidance & Direction. Perfect Market Conditions for New Ideas. Companies Need Our Guidance & Direction. April 29, 201415

16. April 29, 201416 P = R - C Revenue – Cost = Profit = Profit

17. HR is a Cost Center Department That Costs Money. Department That Costs Money. Marketing, Finance, HR, IT, R&D are Examples of Cost Centers. Marketing, Finance, HR, IT, R&D are Examples of Cost Centers. First Targets for Downsizing. First Targets for Downsizing. April 29, 201417

18. Cost Structure April 29, 201418 General & Administrative: General & Administrative: Deloitte Consulting LLP (2010) ▫G & A is 20 - 35% of Revenue. ▫Perception that These Departments Add Little or No Value.

19. Cost Structure April 29, 201419 Deloitte Consulting LLP (2010) The Key is a Strategic Approach: The Key is a Strategic Approach: ▫Delivers Major Structural Breakthroughs. ▫Not Just Incremental Improvements.

20. Kill the Status Quo April 29, 201420 SOURCES: CFO Research Services (2003) & Kahnweiler (2006) 5 Key Challenges Faced by HR Today: Perceived Lack of Power and Influence. Perceived Lack of Power and Influence. Walking a Tightrope (Balancing Act). Walking a Tightrope (Balancing Act). Dealing with Skeptics of HR. Dealing with Skeptics of HR. Fear of Vulnerability. Fear of Vulnerability. Being Overwhelmed. Being Overwhelmed.

21. Influence Starts at the Top April 29, 201421 SOURCES: CFO Research Services (2003) & Kahnweiler (2006) Boards of Directors have Differed Widely in the Extent of Utilization or Reliance on the HR Leader in the Strategy of the Organization. Boards of Directors have Differed Widely in the Extent of Utilization or Reliance on the HR Leader in the Strategy of the Organization.

22. April 29, 201422 SOURCES: CFO Research Services (2003) & Kahnweiler (2006) HR Reports to the CEO in Only About 52% of Companies. HR Reports to the CEO in Only About 52% of Companies.

23. April 29, 201423 SOURCES: CFO Research Services (2003) & Kahnweiler (2006) HR Reports to the COO in About 17% and to the CFO in About 13% of the Cases. HR Reports to the COO in About 17% and to the CFO in About 13% of the Cases.

24. Competing Priorities of Human Resources April 29, 201424 SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE Transaction Focused Strategic Focused Transaction Focused Strategic Focused

25. We Have the Power! HR is the Only Function with a “License” to Interrelate with Every Employee and Every Function in the Company and Beyond. April 29, 201425 How Are You Going to Make the Most of the Responsibility You Have Been Given?

26. Strategic Engagement Strategic Partnering Starts with Engagement. Strategic Partnering Starts with Engagement. Earlier Engagement Maximizes Opportunity to Influence and be Strategic. Earlier Engagement Maximizes Opportunity to Influence and be Strategic. April 29, 201426 More Opportunity Some Little/Execute Engagement Continuum vs. Time of Engagement Early Late

27. Strategic HR Professionals are Curious and Ask the Right Questions April 29, 201427

28. Strategic HR: Asking the Right Questions Leadership Leadership Culture Culture Communication and Engagement Communication and Engagement Workforce Planning Workforce Planning Talent Talent Retention Retention Performance Management Performance Management Team Development Team Development April 29, 201428

29. Outsource the Delivery of Transactional Services. Outsource the Delivery of Transactional Services. April 29, 201429 SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE Be a Trusted Advisor: Develop the Internal Consulting Skill Sets that Enable the Transformational Part of HR. Develop the Internal Consulting Skill Sets that Enable the Transformational Part of HR.

30. April 29, 201430 SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE “HR Person Know Thyself” HR Challenges Art vs. Science Boardroom vs. Department Transactional vs. Transformational Enforcer vs. Advocate Profession Perception Influence Skills

31. The Future Belongs to Strategic HR Leaders! April 29, 201431

32. April 29, 201432 Mark Onetto Sr. VP WW Ops “Do good for our customers and they will do good for us” Amazon’s Business Plan “Head without Heart is Hopeless” “Technology without People is Hopeless” “Strategy without Execution is Hopeless” “Perfection is not of this World”

33. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201433 ▫Focus on Business Principles and the Employee/Company Well-Being.

34. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201434 ▫Constantly Think As If from the Outside.

35. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201435 ▫Demonstrate a Strong Competitive Drive and Passion.

36. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201436 ▫Are Motivated by Doing the Right Thing for the Organization.

37. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201437 ▫Believe that Success in Relationships is Tied to the Accumulation of Quality Experiences.

38. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201438 ▫Embrace Effective Technology and Practices.

39. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201439 ▫Understand that a Continued Focus on Problem Definition and Resolution is More Important than Technical or Content Mastery.

40. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201440 ▫Believe that Both Selling and Serving are Aspects of Professionalism.

41. Traits of Successful Strategic HR Leaders Strategic HR Professionals Demonstrate Predictable Characteristics: Strategic HR Professionals Demonstrate Predictable Characteristics: April 29, 201441 ▫The Successful Strategic HR Professional is Selfless, Authentic and Real.

42. April 29, 201442

43. For more information or to receive a copy of this presentation, feel free to contact Clint Tripodi at: clint@pendolinogroup.com or 707-812-2555. April 29, 201443 Thank you!

44. Q & A April 29, 201444

45. For more information or to receive a copy of this presentation, feel free to contact Clint Tripodi at: Clint @ PendolinoGroup.com or 707-812-2555. Thank you!