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…..

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”Functions Transactions

Compliance

Record keeping

Financial Focus Cost minimized

Key Strategies Rule knowledge

Process efficiency

Products/Services Payroll & benefit administration

Job descriptions/standards

Training

Compliance

Metaphor The enforcer

Paradigm Technical correctness

HR Evolution: “Human Resources”Functions Advisory services

Problem solving

Operational issues

Financial focus Cost control

Key strategies HR practices

Business context

Products/services Recruiting, Performance evaluation, Payroll, Position management, Employee relations, Training & Development, Risk management

Metaphor Business Partner

Paradigm Process Improvement

HR Evolution: “Human Capital”Functions Capacity building

Opportunity identification

Strategic issues

Financial focus Investment analysis (ROI)

Key strategies Systems thinking

Strategic consulting

Products/services Human capital planning, Talent management, Leadership development & succession planning, Performance culture, Competency systems, Metrics

Metaphor Strategic Partner

Paradigm Transformation

HR Strategic Architecture

HR Function

HR professionals with strategic competencies to deliver products/services that drive organizational success

HR SystemPerformance driven, strategically aligned

policies & practices

Human Performance

Strategically focused competencies, motivation, skills,

capabilities

The Strategic HR Model

StrategicHR

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 hire 8 37

Annual training hours:

Per new employee

Per experienced employee

35

13

117

72

% employees receiving performance appraisal

360 feedback41%

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………