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AGILITY @ HR EXCELLENCE – ART – LEADERSHIP
Dirk Stoltenberg, Global HRM // HR Tech Europe 2014
This document provides an outline of a presentation. It is incomplete without the accompanying commentary
ALMOST 20YRS OF SHARED SERVICES...
...acknowledge for: • More efficiency and reduced cost
– Sure!
• Improved Customer Service – Maybe.
• Fewer administrative burden – For whom?
Poorly defined and non-standardized processes reduce operational efficiencies and cost-savings.
Processes
1%
32%
0%
20%
40%
Non-standardized processes
Standardized processes across
all locations
Impact of Process Standardization on Cost-Savings
Net
Cos
t-Sa
ving
s
Source: Shared Services Roundtable
People High turnover and dis-engagement of staff reduce productivity, negatively impact customer service, and increase hiring costs.
Annual Turnover Rates
Med
ian
Turn
over
Rat
e 15.2%
9.9%
0%
10%
20%
Shared Services Employees
All Corporate Employees
Source: CLC Human Resources
35%
18% 14% 13%
0%
20%
40%
Non-integrated technology and data sets can reduce HR shared services center quality and efficiency.
Technology
Top HR Service Delivery Issues
Perc
enta
ge o
f Org
aniza
tions
Streamlining Processes & Systems
Upgrading HR Systems
Data Accuracy
Integrating Systems
Source: Towers Watson
Changing nature of work
Changing needs of internal clients
Changing nature of the consumer
Changing nature of B2B customers
Changing impact of information
BUSINESS TRENDS 2015+
STRATEGIZE DYNAMICALLY
PERCEIVE CHANGE
TEST & EXPERIMENT
IMPLEMENT THE CHANGE
BE AGILE:
Distinct but complementary capability
Strategize dynamically Shared purpose
Purpose other than profit & growth and business model are known. Values embedded drive behavior on a daily basis
Change-friendly identity
Sense of „who we are“ and „What inspires us“. Strategy encourages the organization to change
Robust strategic intend
Current strategy is relevant in and concruent to the actual market conditions. Held flexible enough to change on short notice
ROUTINES OF AGILITY (1)
Perceive change Sensing People are keen to explore the
future deeply. Many people maintain continuous contact with parts of the business environment
Communicating Unfiltered information from the environment goes rapidly to decision makers. Communication goes seamless between top down & bottom up.
Interpreting Information gets evaluated against firm‘s identity, intent, business model, and risk tolerance
Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company
Distinct but complementary capability
Test & experiment Slack in resources Capable resources (people,
money, time, tools) are available and can be readily deployed to experiment with new ideas
Risk Management Experiments are bounded by agree-upon criteria for judging success and failure. The possibility of failure is accepted, as a vehicle for learning
Learning Experience with running experiments is captured and applied with each „new round“, so that the company‘s capabilities are continuously improved
ROUTINES OF AGILITY (2)
Implement the change Management and organizational autonomy
Executives delegate sufficient authority to line and business managers o that the company can execute changes with success. There‘s no second guessing from headquarters but alignment with basic strategic objectives
Embedded change capability
The pragmatic ability to change collective habits, practices, and perspectives is embedded in line operations, not isolated in staff groups
Performance management
Clear, unambiguous, accepted performance measures and targets are based on business model drivers with rewards that matters
Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company
Companies scoring high in agility related routines have higher levels of Return On Assets
Source: Center of Effective Organizations, University of Southern California
https://www.youtube.com/watch?v=yFzYqEiV5lI
Reaction (reflection) leadtime upon customer feedback Customer focus incentives Mistakes handling culture Experimential habit Test result communication Investment in learning &
continuous improvement Organizational slack Amount of intuition relevant
in investment decisions .....
Execution & budget decision authority Unambiguous goal setting Transparent business
performance benchmark Real & transparent
consequence management Transparent incentive
schemes Value based engagement
model .....
ASSESS YOUR OWN AGILITY AGAINST...
Agile organizations need agile people....so, answer yourself this questions:
How agile are you? Are you changing before you have to?
© ABB Group October 24, 2014 | Slide