[email protected] HUMAN RESOURCES TRANSFORMATION “HUMAN RESOURCES TRANSFORMATION” THE ROLE...

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HUMAN RESOURCES TRANSFORMATION

““HUMAN RESOURCES TRANSFORMATION”HUMAN RESOURCES TRANSFORMATION”

THE ROLE OF HR IN CORPORATE THE ROLE OF HR IN CORPORATE TRANSFORMATION: TIPS FOR BAD TRANSFORMATION: TIPS FOR BAD

AND UNCERTAIN TIMESAND UNCERTAIN TIMESAllan Bukusi

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Key ReferencesKey References

1. Deloitte learning, 20062. Hewlett Packard, 20073. PwC, HfC Research, 20124. Values Based Leadership for Transformation,

research 20135. Transformative CEOs in Kenya, NATION , 20136. How to Lead corporate transformation, 2013

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PRESENTATION AIM

• To update participants on the increasingly changing, evolving and transforming role of human resources leadership in corporate transformation and business survival & success.

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COVERAGE

1. What is corporate transformation? 2. Human resources transformation?3. The role of HR in corporate transformation4. Tips for good, bad & uncertain times.

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CORPORATE TRANSFORMATIONCORPORATE TRANSFORMATIONCorporate transformation is a process of

organization renewal that facilitates the long term survival, sustainability and success of a business.

It is enabled by a paradigm shift in leadership thinking or quantum leap in business operations in response to market dynamics, environmental changes and future trends.

-HOW TO LEAD CORPORATE TRANSFORMATION

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The qualities of a TransformingTransforming corporate organization

1. Remains relevant in the market2. Meets the need of the public (+customers)3. Provides quality services and products4. Trains & mentors future leaders5. “Lives” transformative values (culture)

- VALUES BASED LEADERSHIP FOR TRANSFORMATION

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DANGERS OF NOT-TRANSFORMINGDANGERS OF NOT-TRANSFORMING

1. Slide into “irrelevance”, non-responsive organization and business.

2. Frigid bureaucracy & wasteful production.3. Under performing, under deployed staff.4. Declining profitability & service delivery. 5. Structural inefficiency & ineffectiveness.


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• HR Transformation initially focused on making HR operations more efficient and effective through process standardisation and technology.

Deloitte , 2006

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THE NEXT GEN. HR TRANSFORMATION

1. Tightly linked to corporate strategy 2. Creates business value through HR services that

address a company’s most pressing strategic challenges.

3. Anticipates critical workforce trends, 4. Shapes and executes business strategy, identifying

and addressing people-related risks and regulations. 5. Enhancing workforce performance and productivity.6. Offers new HR services to help a company improve

and grow.

Deloitte , 2006

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TRANSFORMING HUMAN RESOURCES• HR Challenges– Globalization– Evolving workforce– Evolving (IT) business– Virtual management (156,000 staff, x counties & cultures)

• HR Road to transformation– Stuck to core values– focus on customer & product growth strategy– Cross-functional reporting (marketing officer report to HR

manager). HR present on the work front.– Eliminating bureaucracy

- HEWLETT PACKARD

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TRANSFORMING HUMAN RESOURCES

• Review total reward strategy• Leadership team development• New operating model for HR– Operational efficiency– Head count (reduced to minimum cost)– Transformational not transactional staff contact

(portal)• HR leading business transformation– Engaging HR people on the business front– “Transformational” training programs for all staff

- HEWLETT PACKARD

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THE QUESTION; IS HRT DRIVING BUSINESS PERFORMANCE?

1. HR focuses on either “business” or “administration”.

2. HR has a strategic role In business development

3. Transformation fails because “transformation” efforts focus on Admin. rather than on skills development to execute vision.

PwC, Hfc Global Research, 2012

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GLOBAL HR TRENDSGLOBAL HR TRENDS• The global workforce is evolving.• New talent is required (tech savvy).• HR executives become substantive organization

leaders in times of change.• HR Transformation assumes accountability for business

success.• No “one-size-fits-all-strategy” it must be locally and

globally specific.• HR is challenged to make transformation real to the

business and not an “intervention” like a “systems upgrade”, hiring or retrenchment programs.

PwC, Hfc Global Research, 2012

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DRIVING TRANSFORMATIVE ORGANIZATIONS IN KENYA

1. Six year rule; Sustained transformative leadership initiative.

2. Growth rule; average 50% annual growth metrics.

3. Employ transformative strategic plans.4. Strong philosophy, values and customer

focused culture.

-TRANSFORMATIVE CEOS , ANALYSIS

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TRANSFORMATIVE CEO: Advice

1. Develop Business focus2. Focus on service delivery3. Develop (organization) systems4. Develop leaders, leadership (teamwork)

-TRANSFORMATIVE CEOs, ANALYSIS

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MAJOR LESSONS FOR HR1. The way work is done & the workforce is evolving.2. HR is expected provide NEW services and real time

business solutions.3. Expected to provide strategic initiative & lead change.4. Ensure the organization remains relevant in its

environment (keeping pace with the market).5. “appropriate” core values sustain organization in

evolving and dynamic circumstances.6. Effective (rigid) HR practice can unwittingly cause

corporate failure in the medium term.

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SUSTAINABLESUSTAINABLEPURPOSEPURPOSE

VALUESVALUESAUDITAUDIT

TRAININGTRAININGLEADERSLEADERS

CUSTOMERCUSTOMERFOCUSFOCUS

TRANS. TRANS. STRATEGICSTRATEGIC

PLANPLAN

ETHICAL ETHICAL BUSINESS BUSINESS SYSTEMSSYSTEMS

RESEARCH & RESEARCH & DEV.DEV.


CORPORATE TRANSFORMATION

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Align Co.Align Co.ValuesValues

Dev.Dev.Bus. Sup Bus. Sup HR syst.HR syst.

TrainTrainTalentTalent

HRHRLead Lead

ChangeChangeManageManageProduct.Product.

Manage Manage Services.Services.



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TIPS FOR “GOOD, BAD & UNCERTAIN TIMES”

1. Start with understanding the business, not “Retrenchment”, then decide short, medium-term action.

2. Align reward strategy to support pursuit of corporate goals.

3. Position organizations for (future) growth.4. Align organization values to sustain business

performance.5. Develop “next” generation leadership (demographics)6. From “Institutional” HR to Business HR7. Incorporate global outlook in local solutions

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Sources

• Onyango, Cultural gap & economic crisis in Africa, 2010• Kiiru, et al, Successful fundraising,2011• Kirimi & Minja, Transformational corporate leadership, 2012• Bukusi, How to lead corporate transformation, 2013• Burns MJ, Leadership, 1978• Transformative CEOs with golden hands, Sunday nation 30th June 2013• http://

www.deloitte.com/view/en_cn/cn/42a8b3d77f1fb110VgnVCM100000ba42f00aRCRD.htm

• http://www.pwc.com/us/en/people-management/publications/assets/pwc-hfs-hr-transform.pdf

• http://www.hp.com/hpinfo/execteam/speeches/perezdealonso/07confboard.html

• http://allanbukusiauthor.blogspot.com/2013/05/what-is-corporate-transformation.html

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