Mike Bollinger, Global VP

Thought Leadership & Advisory Serv ices

THE “NEW” NEW HRTHE VALUE OF STRATEGIC HR IMPROVEMENT

“How to solve the strategy puzzle, speak process improvement and

build a case”

The word “Value” has many meanings.

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What We Covered

• Business Strategy Counts (The New HR?)

• The “Business Case” (A Primer)

• How and Where To Focus (Practical Tips)

Brands that don’t change, don’t thrive

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“An organization's ability to learn, and translate

that learning into action rapidly, is the ultimate competitive advantage”

– Jack Welch

We Believe: People are your only sustainable competitive advantage.

The Pace of Change Is Relentless

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Production and/or service delivery quality standards

fell

It’s MORE Than Just Hiring The Right PeopleHR & Talent Issues Loom Large on the CEO Agenda

Talent-related expenses rose more than

expected

Unable to innovate

effectively

Unable to pursue a market

opportunityCancelled or delayed a key strategic

init iat ive

Unable to achieve growth forecasts in overseas

markets

Have talent constraints impacted your company's growth and profitability over the past 12 months in the

following ways?Q:

Pe

rce

nta

ge

of

CE

O R

esp

on

de

nts

45

40

35

30

25

20

TALENT CONSTRAINTS IMPACT MORETHAN COSTS

IT’S OFTEN LOST OPPORTUNITIES

Unable to achieve growth forecasts in the country where we are based

6Base: All respondents (1,258) Source: Pw C 15 th Global CEO Survey

Gartner Hype Cycle

Don’t Jump In Because It‘s In

Don’t Miss Out Because It’s Out

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Does It Make Sense For

You and Your Situation?

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The HR Business Case (A Primer)

The real problem is that too many organizations aren't as

demanding, as rigorous, or as creative about the human

element in business as they are about finance, marketing,

and R&D.

“Thinking Different’er”

Why We Love To Hate HR…and What HR Can Do About It

A Shift In Focus“How can we establish a model for successful HR transformation?” - Dave Ulrich

Strategy

Administration

Consultation

Outsourced Activities

Employee/Manager Self Service

19xx’s - Present 2017 - Future

Tran

sac

tion

al

60%

30%

10% 20%

20%

Planning

60%

Percentages for illustration

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Va

lue

Practical Tips On Where to Focus

Making Your Story Heard

Efficiency Improvements are Good

Distinguish Between Efficiency and Effectiveness

HR Practitioners often focus on efficiency instead of effectiveness

when optimizing and measuring talent management.

.5-2x ROIEfficiency / Compliance

• % of courses completed

• # of Employees with Goal Plan• Time spent by managers and HR

Effectiveness Improvements are Better

8-10x ROI

Business Enablement

• Productivity & Engagement

• Business Results• Improvement Trends

• Revenue per Employee

Sources: Bersin & Associates, CedarCrestone

“By 2019, process automation will have limited impact on top-line growth for 50% of organizations that will erroneously focus on labor reduction, not on improving business outcomes.” -Gartner 2016

TCO Considerations Tot al Cost Of Ownership Goes Int o Any Analysis As Well

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• Current Footprint- Subscriptions, maintenance, integrations, and staffing

• New Projects- Subscription/maintenance, implementation, third party subscriptions, training,

integrations, and staffing

• Staffing- IT-focused FTE, HR-focused FTE, and Admin-focused FTE

• Integrations- Number of integration points, and cost per integration

• HR Infrastructure- Hardware, database software, integration software / middleware, network

provisioning, facilities / data center, hosting fees, etc.

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Call To Action

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Don’t Take My Word For It!

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To Summarize…

• How Have You Created Need In Your Organization?

• How Have You Funded Projects Until Now?

• Do You Lose To Other Projects Which Are More “Critical”?

• Do You Tie Your Efforts To Measureable Outcomes?

• Do You Consider Risk In Your Decisions?

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Talent is your differentiator

Make the investment that pays

Talent drives your business

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Mike Bollinger, HCS® SWP®

VP, Thought Leadership & Advisory Services

mbollinger@csod.com

715.577.3697

www.linkedin.com/in/mikebollinger

twitter.com/bollinger