PROCESS STEPS TO SUCCESSFUL HUMAN RESOURCES BUSINESS PARTNERING

(HRBP)

CHARLES COTTER

12 JUNE 2014PALAZZO HOTEL, MONTECASINO

SCOPE OF PRESENTATION

• Defining the fundamental concepts

• Diagnosis of current HRBP organizational practices (health check)

• Building a business case for HRBP (strategic imperative)

• Business Executives expectations and priorities

• Enablers and critical success factors to transforming/re-positioning HRBP

• The 5-step HRBP strategy

DEFINING THE FUNDAMENTAL CONCEPTS

• Partnership

• Business Partner

• Strategic Business Partner

DEFINING HR BUSINESS PARTNERING

• Partnership: A relationship between individuals or groups characterized by mutual co-operation and responsibility, for the achievement of a specified shared goal.

• HR business partners are HR professionals who work closely with an organization’s senior leaders in order to develop an HR agenda that closely supports the overall aims of the organization. The process of alignment is known as HR business partnering.

• Strategic business partners: A long-term relationship (alliance) to achieve defined objectives common to all partners. In the context of strategic human resource management, the HR function and activities are intended to ensure the organization's financial success and prosperity (business continuity).

DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR HRBP

• #1 Embedding HRM strategy in business strategy and able to translate that strategy into deliverable actions

• #2 Well-defined, implemented and reported HRM performance and ROI metrics (creating credibility and accountability)

• #3 Generating business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions)

• #4 Offering a professional, value-adding business proposition sensitive to and supportive of business needs, interests and strategic priorities

• #5 Ongoing line management consultation, engagement, coaching and building trusting, collegial and mutually beneficial business relationships

DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR HRBP

• #6 HR Management and practitioners possess business and industry knowledge, acumen and insight

• #7 HRM collaborates with line management to broker meaningful and impactful business solutions

• #8 HRM processes, systems and practices are horizontally integrated (bundled), agile, responsive and stream-lined (that enhance productivity and efficiency)

• #9 HRM is a transformational initiator, driver and implementer of business change

• #10 HRM is technology-savvy innovator, enabling and leveraging best practices (e.g. CoE; Shared Services and e-HRM)

RESEARCH-BASED HRBP MATURITY (HAY GROUP)

• Only 34% believe HR is making a significant strategic contribution to their organization; the majority (60%) positioned themselves somewhere in the middle

• Only 36% say talent management and organizational effectiveness are closely aligned

• Slightly more than 39% say they have moved away from traditional silos, but this leaves 61% that haven’t – or worse still, are unsure.

RESEARCH-BASED HRBP MATURITY (OTHER)

• Research shows that HR business partners have a presence in 43% of high-performing organizations (i4cp)

• The 2013 Global Assessment Trends Report (GATR) - SHL.com found that 41% of firms surveyed are confident that their human capital strategy is properly embedded in their organizational strategy.

STRATEGIC IMPERATIVE OF HRBP: QUOTES

• “As market demands continue to change, organizational success will hinge on HR’s ability to connect human capital decisions with business strategy. HR will need to stop clinging to traditional processes and inefficient silos and move toward an integrated approach that links work and people to business results. Such change is critical if HR is to transition to its rightful place of strategic business partner.” (Phil Johnson, Hay Group’s global head of work measurement)

• “If the HR role in an organization is not transforming itself to align with forward thinking practices, executive leadership must ask HR leaders some tough questions. Today’s organizations cannot afford to have an HR function that fails to contribute to and lead modern thinking.” (Erna Oldenboom, Director of the “HR As A Strategic Business Partner Programme”, UCT Graduate School Of Business)

• “Business Partners also need to play a leading role in influencing key business decisions and managing people-related risk and compliance whilst continuing to focus on innovative responses to the talent challenges that we experience in South Africa. “ (Deloitte, 2013)

• “Valuable HR Business Partnering is about delivering tangible outputs that support the achievement of shared business goals.” (Deloitte, 2011)

REALITY CHECK

• The business context within which HRBPs operate has changed radically.

• The extreme conditions, competition and need for lower costs have had multiple effects on organizations and the work of HR.

• V-U-C-A

• VUKA! (Wake up, Come Alive!)

EXPECTATIONS AND PRIORITIES OF BUSINESS EXECUTIVES

• CEO’s expect the Human Resources function to play a much more active and participatory role in enabling business strategies.

• Senior business leaders consider talent to be perhaps the critical factor in the push for sustainable growth and the need to manage new opportunities and risks in a more complex and interdependent world.

• According to The Conference Board CEO Challenge (2013), Human Capital is rated 10% higher than operational excellence as a major challenge for businesses.

WHAT BUSINESS EXECUTIVES ARE LOOKING FOR IN HRBP?

• Catalytic Driver of Change

• Pro-active Business Thinker

• Collaborative Consultant

• Purpose-directed Coach

• Delivery (results-oriented HR practices)

• (Credible and Accountable) Performance Advisor

• Strategic Facilitator

ENABLERS OF TRANSFORMATION/RE-POSITIONING TO HRBP – “RIGHTING THE SHIP”

• “HR needs to follow the right process, applying the right skills, in the right manner/method, fulfilling the right roles, for the right reasons, to achieve the right results.” (Cotter, 2014)

Competencies

Roles

Process

Trends

Critical Success Factors

Approach

ULRICH’S SIX COMPETENCIES FOR HR TRANSFORMATION (2009)

• Credible Activist

• Strategic Positioner

• Capability Builder

• Change Champion

• HR Innovator and Integrator • Technology Proponent

BEST PRACTICE HRBP (COMPETENCE)

HRM CONTENT

BUSINESS CONTEXT

HRBP PROCESS

(TRADITIONAL) ULRICH’S 4 STRATEGIC ROLES (1997)

• Strategic Partner

• Administrative Expert

• Change Agent

• Employee Champion

(CONTEMPORARY) PENTAGONAL STRATEGIC VALUE-ADDING ROLES

• Self Mastery

• Relationship Management

• HR Expertise

• Business Acumen

• Execution

FUTURE-FOCUSED ROLES

HRBP TRENDS • Optimization of systems, processes and structures (architecture)

• Re-organizing HR service delivery and operating models e.g. Shared Services

• Sourcing “Stars” from outside HRM

• Implementation of HR Academies and Business Partner training programmes

• There is a particular focus on developing consulting, project and change management skills as well as general business and commercial acumen

• Establishing HR Centres of Excellence/Expertise (CoE’s)

HR CENTRES OF EXCELLENCE

HRBP CRITICAL SUCCESS FACTORS• Strategic focus and thrust (on issues that contribute to business growth and

competitiveness)

• Adopting a “big picture” perspective (regarding the organization’s priorities and goals)

• Having personal impact and credibility (to influence key decision-makers)

• Adopting an Key Account Management, (internal) client-centric approach • Possessing a set of value-adding skills and knowledge (customers and business)

• Being a diplomat and negotiator (in harmonizing the HRM agenda with business needs)

HARMONIZATION OF HR AGENDA AND BUSINESS GOALS

1. STRATEGIC BUSINESS GOALS AND PRIORITIES

= BUSINESS IMPACT AND

RESULTS

3. FORMULATION OF HRM DELIVERY TARGETS

2. HR AGENDA AND

PROGRAMMES

HRBP STRATEGY APPROACHES

• Best Practice

• Best Fit

• Hybrid (integration)

STRATEGIC ACTION STEPS/PLAN TO TRANSFORM HR INTO HRBP

• Step 1: Strategic Review and Analysis

• Step 2: Strategic Role Clarification and Contracting

• Step 3: Formulation and Development of Transformational Strategies

• Step 4: Implementation of Transformational Strategies

• Step 5: Measure and evaluate business impact and results

STEP 1: STRATEGIC REVIEW AND ANALYSIS

• Objective: The focus of the analysis should be on understanding the needs of the business as a sustainable entity, its strategic direction and identifying initiatives that will help your business grow.

• Review of current HRM and business strategies

• Identification of resources and capabilities

• Tools:

Environmental scan (PESTEL)

Gap Analysis

S-W-O-T Analysis

STEP 2: STRATEGIC ROLE CLARIFICATION AND CONTRACTING

• Objective: The concluding of Service Delivery Agreements with line/operational and senior/executive management

• Consultation, engagement and communication with operational management

• Clarification of expectations, needs and value-adding roles of HRBP

• Contracting agreements

STEP 3: FORMULATION AND DEVELOPMENT OF TRANSFORMATIONAL STRATEGIES

• Objective: Development of HRBP transformation strategic plan

• Formulation of goals and objectives

• Development of alternative transformational strategies

• Choice of most appropriate strategies

Viability Feasibility Sustainability

STEP 4: IMPLEMENTATION OF TRANSFORMATIONAL STRATEGIES

• Project-based, cross-functional team approach

• Organizing, assigning and deploying resources

• Leading and directing (the implementation process)

• Monitoring and Controlling

STEP 5: MEASURE AND EVALUATE BUSINESS IMPACT AND RESULTS

• Measure and calculate the ROI

• Aspire to continuous improvement processes

• Amend and review strategies (remediation action)

• Report back to business partners (to demonstrate transparency and accountability)

SUMMARY

• Key points

• Questions

CONTACT DETAILS

• CHARLES COTTER

• 084 562 9446

• charlescot@polka.co.za

• LINKED IN

• TWITTER: Charles_Cotter