“ Managing HR Talent in Turbulent Times”

© 2003 SHRM

HR: Leading People, Leading Organizations

““Managing HR Talent in Managing HR Talent in Turbulent Times”Turbulent Times”

David C. Forman, SPHRDavid C. Forman, SPHRSenior Vice PresidentSenior Vice PresidentProfessional and Business DevelopmentProfessional and Business DevelopmentSociety for Human Resource ManagementSociety for Human Resource Management

© 2003 SHRM


DefinitionsDefinitions

““Turbulent”(adj.): Turbulent”(adj.): movement or movement or agitation.agitation.

““Turbulence”(noun): Turbulence”(noun): confusion.confusion.

© 2003 SHRM


““The Future Ain’t What It The Future Ain’t What It Used To Be !!!!Used To Be !!!!

Source: Yogi BeraSource: Yogi Bera

© 2003 SHRM


““The Future arrived when we The Future arrived when we weren’t looking, so we’re still weren’t looking, so we’re still dealing with issues, ideas and dealing with issues, ideas and

programs that don’t fit the programs that don’t fit the world’s new realities.”world’s new realities.”

Source: Peter DruckerSource: Peter Drucker

© 2003 SHRM


What is the Future of the Human What is the Future of the Human Resources Profession ?Resources Profession ?

© 2003 SHRM


Which of These is True?Which of These is True?

“The next ten years will be the HR decade.”Professor David Ulrich

“Human Resource Champions”

“I am describing your human resources department, and have a modest proposal: Why not blow it up?”

Thomas A. Stewart“Fortune” Magazine

© 2003 SHRM


General General ElectricElectric

General ElectricGeneral ElectricAnnouncement to employees of the “Human Resource Leadership Program”Announcement to employees of the “Human Resource Leadership Program”

HRLP (Human Resources Leadership Program)HRLP (Human Resources Leadership Program)HRLP will prepare you for a dynamic role in the human dimension of GE. By helping HRLP will prepare you for a dynamic role in the human dimension of GE. By helping

to develop our future leadership, your work will influence the direction of our company.to develop our future leadership, your work will influence the direction of our company.

Program SummaryProgram SummaryA 2-year entry-level program consisting of 3 challenging and in-depth 8-month A 2-year entry-level program consisting of 3 challenging and in-depth 8-month

assignmentsassignmentsBroad business skills developed via hands-on experience in two HR assignments, Broad business skills developed via hands-on experience in two HR assignments,

plus a third assignment in an area such as finance, quality or business developmentplus a third assignment in an area such as finance, quality or business developmentFormal classroom training in advanced human resources techniques and business Formal classroom training in advanced human resources techniques and business

conceptsconceptsExtensive contract with peers and senior business leaders from around the wordExtensive contract with peers and senior business leaders from around the wordExpansion of your knowledge base, critical problem-solving skills and network of Expansion of your knowledge base, critical problem-solving skills and network of

valuable contactsvaluable contacts

Candidate CriteriaCandidate CriteriaDemonstrated academic excellence, business acumen and leadership abilityDemonstrated academic excellence, business acumen and leadership abilitySelf-confidence, strong analytic problem-solving skills and exceptional Self-confidence, strong analytic problem-solving skills and exceptional

communication skillscommunication skillsMBA/MA in Business or an HR-related discipline plus several years work experience MBA/MA in Business or an HR-related discipline plus several years work experience

preferredpreferredGeographic flexibility and global mindset; able to operate across culturesGeographic flexibility and global mindset; able to operate across cultures

© 2003 SHRM


GE’s HR-Development OpportunitiesGE’s HR-Development Opportunities• Employee-relations problem-solving assignmentEmployee-relations problem-solving assignment• HR-generalist assignmentHR-generalist assignment• Technical-specialization assignmentTechnical-specialization assignment• Organization-effectiveness intervention experienceOrganization-effectiveness intervention experience• Process-consulting experienceProcess-consulting experience• Community-relationship experienceCommunity-relationship experience• Stretch job assignmentStretch job assignment• Exposure to global issuesExposure to global issues• Staff assignmentStaff assignment• Cross-functional experienceCross-functional experience• Fix-it assignmentFix-it assignment• Start-up assignmentStart-up assignment• Large-scale change effortLarge-scale change effort• Organization-structuring assignmentOrganization-structuring assignment• Corporate assignmentCorporate assignment• HR functional-leadership assignmentHR functional-leadership assignment• Business-team partnership experienceBusiness-team partnership experience• Business-leaders support assignmentBusiness-leaders support assignment• Exposure to role modelsExposure to role models• Extended professional networkExtended professional network

© 2003 SHRM


• “This business game is all about winning. The team that wins is the team with the best players. Your job is to field the best players.”

• Jack Welch, Former CEO General Electric Corporation

© 2003 SHRM


The Container Store

© 2003 SHRM


The Container Store

The Container Store has NO HR Officer or Department

!!!!!!!!!


The Essential Question???The Essential Question???

How can HR professionalsproduce significant value

and deliver results???


BecomeBecome aa StrategicStrategic Business PartnerBusiness Partner

© 2003 SHRM


ON BEING A “STRATEGIC PARTNER”ON BEING A “STRATEGIC PARTNER”

Only 34% of HR Executive Are

Viewed As “Strategic Partners”

SHRM/BSCol Survey, 2002

© 2003 SHRM


Business Environment:

Workforce issues are at the top of the agenda for CEOs

Increasing recognition among business leaders that people represent the only real

competitive advantage a company can sustain

© 2003 SHRM


Where is HR Going in These Turbulent Times ?

• There can be an EXCITING future for the profession.

• But human resource professionals have to be prepared, willing and able to embrace that future!

© 2003 SHRM


What Are The Current Business What Are The Current Business IssuesIssues??

What are HR Professionals Saying?What are HR Professionals Saying?

What are CEO’s Saying?What are CEO’s Saying?

© 2003 SHRM


The Top Seven People-Related HR Issues

1. Retaining Talent 2. Attracting Talent with Critical Skills3. Improving Workplace Performance4. Gaining Control of Health Care Costs5. Using the Web Effectively for Information/Service

Delivery6. Creating “People Measures” for a Balanced Scorecard 7. Building New Workforce Skills for the Next Round of

Growth

SOURCE: Towers Perrin interview of HR Professionals

© 2003 SHRM


TOP CEO Issues: Customer Loyalty/Retention

Engaging Employees in Company Vision/Values

Competing for talent

Shortage of Key Skills

Reducing Costs

Increasing Flexibility/Speed

Industry Consolidation

TOP CEO Issues HR’s Work

Customer Loyalty/Retention Relationship: Employee/Brand

Engaging Employees in Company Vision/Values

Competing for talent Talent Management

Shortage of Key Skills

Reducing Costs Reducing Costs

Increasing Flexibility/Speed Applying New Technology

Industry Consolidation Mergers & Acquisitions--Reconfiguring Business

© 2003 SHRM


HR Has Key Opportunities Greatest opportunities for impact:

1. Strategic business partner: part of the business

2. Applying new technology

3. Achieving competitive advantage through people4. Mergers & Acquisition / business reconfiguration5. Reducing costs / HR metrics

© 2003 SHRM


Key HR TransformationsKey HR Transformations

Developing a New vision and Theory of the Developing a New vision and Theory of the CaseCase

Shifting to Consulting and Client Service Shifting to Consulting and Client Service OrientationOrientation

Applying Re-Engineering and Work Re-Design Applying Re-Engineering and Work Re-Design Principles to the HR Function and Its RolesPrinciples to the HR Function and Its Roles

Producing Operational ValueProducing Operational Value

Source: SHRM FoundationSource: SHRM Foundation

HR TransitionHR TransitionFunctional Specialist to Strategic Business PartnerFunctional Specialist to Strategic Business Partner

Nature of HR programs and function

Nature of HR strategy and policy

Organization of HR function

Profile of HR professionals

ResponsiveOperationalInternal

HR department full responsibility

Employee advocateFunctional structureReporting to staff

Career in HRSpecialistLack of financial skillsCurrent focusMonolingualNational perspective

Functional SpecialistProactiveStrategicSocietal

HR and line management share responsibility

Business partnerFlexible structureReporting to line

RotationGeneralistFinancial expertiseFocus on futureMultilingualGlobal perspective

Business Partner

26


New Competencies for Strategic Human Resource Leaders


Framework For HR Competencies

Business ResultsActivitiesCompetencies

© 2003 SHRM


HR Competency DomainsHR Competency Domains

• Strategic Contribution

• Personal Credibility

• HR Delivery

• Business Knowledge

• HR Technology Source: University of Michigan Business SchoolSource: University of Michigan Business School

© 2003 SHRM


HR Competency DomainsHR Competency Domains• Strategic Contribution 43%43%

• Personal Credibility 23%23%

• HR Delivery 18%18%

• Business Knowledge 11%11%

• HR Technology 5%5%

© 2003 SHRM


A New Role and a New Title for HR Professionals

© 2003 SHRM


Sources of Competitive AdvantageSources of Competitive Advantage

Economic/Financial

Capability

Strategic/MarketingCapability

TechnologicalCapability

“Organizational Capability”David Ulrich and Dale Lake

© 2003 SHRM


OrganizationalCapability

(the New Role for HR)

Sources of Competitive AdvantageSources of Competitive Advantage

Economic/Financial

Capability

Strategic/MarketingCapability

TechnologicalCapability

“Organizational Capability”David Ulrich and Dale Lake

© 2003 SHRM


Organiztional Capability

• “ Organizational Capability is a business’s ability to establish internal structures and processes that influence its members to create organization-specific competencies and thus enable the business to adapt to changing customer and strategic needs”.

D. Ulrich & D. Lake (1990). Organizational Capability”. John Wiley

© 2003 SHRM


1. To create programs of recruitment, development and retention of world class talent and leaders to support the growth of the organization.

The New HR Job Description

© 2003 SHRM



2. To champion the nurturing of a culture, aligned with organizational strategy, to bring about organizational commitment to ethical practices, lifelong learning and a sense of responsibility to all stakeholders.


© 2003 SHRM



2. To champion the nurturing of a culture, aligned with organizational strategy, to bring about organizational commitment to ethical practices, lifelong learning and a sense of responsibility to all stakeholders.

3. To create programs that will continuously raise the competencies and capabilities of the members of the organization to assure achievement of organizational objectives.


© 2003 SHRM


Wall Street JournalWall Street JournalVice President, Human ResourcesVice President, Human Resources

Global Fortune 500 Company of 30,000 employees, the leader in its

field, is seeking a Corporate Vice President of Human Resources with a

strong background and focus in organization effectiveness, development and

training. “Partnering” with corporate senior management and business sector

heads to bring forth a new business culture, the VP will establish HR as a

strategically focused internal consulting arm to the company. The successful

candidate will have a businessperson’s perspective and a demonstrated track

record in change management, re-engineering, leadership development and

training. Respond to: M-67, P.O. Box 17182, Philadelphia, PA 19105 EOE.

© 2003 SHRM


• “Change is the law of life, and those who look only to the past or present are certain to miss the future.”

• Source: John F. Kennedy

© 2003 SHRM


Suggested ReadingsSuggested ReadingsDave Ulrich. Human Resource Champions, Harvard Business School Press.

Jeffrey A. Mello. Strategic Human Resource Management, South-Western.

Dave Ulrich & Dale Lake. Organizational Capability. John Wiley and Sons,

Becker, Huselid and Ulrich. The HR Scorecard, Harvard Business School

Press

Jim Collins. Good to Great. HarperCollins Publishers, Inc.

© 2003 SHRM


Service

Advice

Strategy

Strategy

Advice

ServiceITSelf-

Service

OutSource

Shared Services

Old

New

Source: Prof. Ed Lawler, speaking at SHRM Foundation Thought Leader Conference, August, 2002

© 2003 SHRM


Topic Outsourcecompletely

Outsourcepartially

Completelyin-house

401(k) Administration 33.2% 51.1% 15.7%

Employee Assistance/Counseling 64.2% 19.5% 16.3%

Retirement Planning Help 24.9% 49.4% 25.7%

Pension Administration 27.5% 45.9% 26.6%

Temporary Staffing 27.7% 44.0% 28.3%

Background Checks 40.8% 26.6% 32.5%

Training and Management Development Programs

5.4% 51.1% 43.5%

Executive Development and Coaching 7.6% 46.6% 45.9%

Health Care Benefits Administration 13.7% 39.7% 46.6%

Employee benefit administration 7.4% 41.5% 51.1%Note: Of respondents whose organizations offer that particular function.

SOURCE: SHRM Weekly Online Poll – July 2003

What HR Functions, If Any, Does Your Organization Outsource? (Please Select All That Apply.)

© 2003 SHRM


Topic Outsource

completelyOutsourcepartially

Completelyin-house

Payroll 8.5% 40.1% 51.4%

Risk Management 8.5% 37.6% 53.9%

Executive Staffing 4.8% 39.3% 55.9%

Employee Relocation 18.5% 22.0% 59.5%

HRIS Selection, Training and Implementation

4.2% 35.7% 60.1%

Recruitment 0.6% 31.3% 68.2%

Executive Compensation and Incentive Plans

1.2% 16.1% 82.7%

Policy Writing 1.4% 13.2% 85.4%

Administration of Compensation and Incentive Plans

1.5% 12.6% 85.9%

Wage and Salary Administration 2.3% 8.6% 89.1%Note: Of respondents whose organizations offer that particular function.

SOURCE: SHRM Weekly Online Poll – July 2003

What HR Functions, If Any, Does Your Organization Outsource? (Please Select All That Apply.)

© 2003 SHRM


Why Does Your Organization Outsource HR Functions? (Please Select All That Apply.)

Choice Count Percent of Sample

Save Money/Reduce Operating Costs 102 26.0%

Allow Our HR Employees to Focus More on Strategy

89 22.6%

Control Legal Risk/Improve Compliance 85 21.6%

Improve Accuracy/Flexibility/Responsiveness 71 18.1%

Take Advantage of Technological Advances Without Capital Outlay

70 17.8%

Lack Expertise In-House 69 17.6%

Offer Services We Otherwise Could Not 66 16.8%

Allow the Company to Focus on its Core Business 57 14.5%

Other 19 4.8%

We Do Not Currently Outsource Any HR Functions 186 47.3%

“ Managing HR Talent in Turbulent Times”

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