VaLUENTiS Nicholas J Higgins 12 Key Differentiators of Leader-Managers 02-2014
VaLUENTiS Evaluating People Management & VBHR function Dist
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Transcript of VaLUENTiS Evaluating People Management & VBHR function Dist
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E P MEvaluating People Management and
the Value Based HR Functionthe Value Based HR Function
People Science®People Science®
19th January 201019 January 2010
Nicholas J HigginsCEO, VaLUENTiS & Dean, Int’l School of Human Capital ManagementDrHCMI MSc Fin (LBS) MBA (OBS) MCMIHR Directors Summit 2010ICC Birmingham General distribution version
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All models, frameworks and related information contained in this information contained in this
presentation are the sole copyright of VaLUENTiS and the International of VaLUENTiS and the International
School of Human Capital Management 2002-2010Management 2002-2010.
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People Science®People Science®
Analyse, Advise, Implement, Educate
www.valuentis.com
Professional Services
www.ISHCM.com
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Smart. Smarter. Smartest...
Professional Serviceswww.valuentis.com
‘PEOPLE SCIENCE®’
O I
‘The leading human capital management
specialists’
Organisation Intelligenceto
improve organisation performanceimprove organisation performance• Human Capital Management Evaluation • Employee Engagement• Talent Management• Workforce Productivity & Performancey• Predictive Analytics• HC Forensics & Risk• HR Function ROI Analysis• Organisation Measurement• Management Education• Organisation Strategy• Organisation Strategy
SOLUTIONS
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Eight faculties:Enterprise Governance and LeadershipEvidence‐based Management (EbM) Human Capital ManagementHuman Capital MeasurementEmployee EngagementHR LeadershipHR Operational ExcellenceEmployment law...
...1 Masters HCMI practitioner qualification4 executive programmes6 practitioner programmes80 short course modules80 short course modules
Unlimited customised combinations...
One outstanding value proposition
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Content for todayContent for today
1. Human Capital Management2 Employee Engagement2. Employee Engagement3. The Value-based HR Function part I4 Th V l b d HR F ti t II4. The Value-based HR Function part II5. Summary
(including ‘The Repositioning of HR’)
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Part OneA ‘bit’ on Human Capital Management
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One for the road.....One for the road.....
“If you cannot measure it, you cannotimprove it.”
Original source attributed to Lord Kelvin 1824-1907, pioneerof physics and thermodynamics, first UK scientist appointedto the House of Lords
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In modern management parlance.....In modern management parlance.....
“What gets measured gets managed.”
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In our HR social science world.....In our HR social science world.....
Evaluation is a more appropriate wordfor measurement.for measurement.
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So consider.....
HUMAN CAPITAL CAPITAL
MANAGEMENT:MANAGEMENT:“Human capital management
is the term which is used to is the term which is used to describe an organisation’s
multi-disciplined and i t t d h t integrated approach to
optimising the capabilities and performance of its
management and employees.”
VaLUENTiS International School of HCM 2006
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Human capital management as a ‘collective’Human capital management as a collective
Di itDiversityEmployee centricityEmployer brand
Organisation climate
p yLeadership
Human capitalmanagement effectiveness
Organisation communication
Performance orientationOrganisation design
HR FUNCTIONINFLUENCE
effectiveness Performance orientationResourcingReward & recognitionTalent managementTraining & DevelopmentHRHR governanceHR operational excellence
HR FUNCTIONCONTROL
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A conundrum to consider?A conundrum to consider?
People, as we know, for many“People, as we know, for manyorganisations are a prime operatingcost/investment and thus contributioncost/investment and thus contributionto organisation performance.Organisations spend considerableOrganisations spend considerablesums each year carrying out financialaudits; but spend very very little onaudits; but spend very, very little onpeople management effectivenessHC/HCM audits/evaluations Why?”HC/HCM audits/evaluations........Why?”
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Evaluating People management in your organisation: The Organisation Engagement
DIVERSITYTRAINING &DEVELOPMENT
g g g g‘radar/clock’
EMPLOYEECENTRICITY
TALENTMANAGEMENT 813
EMPLOYERBRAND REWARD
674
657599 416
HRGOVERNANCE RETENTION
742
615
431
487684HR
OPERATIONALEXCELLENCE
RESOURCING
487
642
628594603
684
LEADERSHIPPERFORMANCEORIENTATION
796
‘Out-performing’ (world class)‘Out-performing’ (peer)
ORGANISATIONCLIMATE ORGANISATION
COMMUNICATIONS
ORGANISATIONDESIGN
796‘Comparable’ (peer)
‘Under-performing’ (peer)
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Ranges and targeting for HR strategy and evaluation purposesevaluation purposes
DIVERSITY
EMPLOYEETALENT
TRAINING &DEVELOPMENT
CENTRICITY
EMPLOYER
MANAGEMENT
584 627
683
650
686
544BRAND REWARD
724795 492
558594 392
HRGOVERNANCE RETENTION
393
479597 660398
HR OPERATIONALEXCELLENCE
RESOURCING736
393621
582401481
405
LEADERSHIPPERFORMANCEORIENTATION
686
613640
633582
561
401
ORGANISATIONCLIMATE ORGANISATION
COMMUNICATIONS
ORGANISATIONDESIGN
703751
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Applications to date...Applications to date...
• HR strategy• Employee engagement
O i i D l• Organisation Development• Cultural assessment
Pre merger integration planning/Change management• Pre-merger integration planning/Change management• Workforce planning• Leadership development evaluation• Leadership development evaluation• Executive development• Individual assessment of each ‘HCM slice’ and appropriate • Individual assessment of each HCM slice and appropriate
intervention with more detailed analysis• Human Capital Reporting• IiP accreditation/Foundation Trust status• HR functional contribution
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Case studies (well vignettes!)Case studies (well vignettes!)
Private • MediaPrivate•Auto•Biotechnology
• Media• Oil & Gas• PharmaceuticalBiotechnology
•Business services•Chemicals
• Professional service firms
• Retail•Construction•Distribution•Food Production
• Retail• Telecommunications• Transport•Food Production
•Financial services– Insurance
p• Utilities
P bli– Investment banking– Retail banking
•FMCG
Public• Local Government • NHSFMCG
•Leisure•Manufacturing/Mining
• NHS• Higher Education • Police
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Delegate takeaway actions....HCMDelegate takeaway actions....HCM
1. What evaluation has my organisation done in the HCM ‘slices’? (if not go to 3.)( g )
2. What has been the driver in each instance?3. Why does my organisation not see
e al ation of people management as evaluation of people management as important?
4. How do we know if any current or past y ppeople interventions have made a difference in our organisation?
5 Is our HR (HCM) strategy hampered by not 5. Is our HR (HCM) strategy hampered by not having sufficient knowledge?
6. As a function how much of an influence are ll hwe really having in improving or maintaining
current HCM performance?
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Part TwoA ‘bit’ on employee engagement
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Employee engagement.....Employee engagement.....
“To understand and use the concept ofl iemployee engagement, one requires
three things:1. A working definition2. A model of components based on reality3. A means of measuring and evaluating
Importance should also be given to its organisational context.” to its organisational context.
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EMPLOYEE EMPLOYEE ENGAGEMENT
Employee engagement is an‘outcome based’ concept Itoutcome-based concept. Itis the term used to describethe degree to which
l b ib demployees can be ascribedas ‘aligned’ and ‘committed’to an organisation such thatthey are at their mostproductive.
VaLUENTiS International School of HCM
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Alignment/Commitment matrix (quick guide)(quick guide)
‘Doing the right things the right
way for the right reason’
Individual’sdegree of Alignment
‘Feeling‘Doing the wrong
things/ wrong ‘Having to stay’
‘Feeling they ought
to stay’
‘Wanting to stay’
things/ wrong way/ wrong
reasons’
Degree ofCommitment
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Or another simpler way to remember (!)remember...(!)
Knows what to do/achieve but
unlikely to Could do more Fullyproductive
Fullycongruent
unlikely to achieve it
More likel to
productive
Less thanMore likely to have
performance/ capability
issues
Job gets done
Less than optimally
productive -Could do more
‘well’
Individual’sdegree of Alignment issues
Likely to have performance,
i di l
More likely to have objective
‘well’
High b bili f
g
attitudinal and/or
behavioural issues
have objective and/or
‘potential’ issues
probability of wasted effort/
frustrationIncongruent
Degree ofCommitment
AffectiveContinuance
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The challenge for the organisation (and HR):
FullyKnows what to
do/achieve but unlikely to
achieve it
Could do more
Fullyproductive
Fullycongruent
achieve it
More likely to have
Less than optimallyIndividual’s have
performance/ capability
issues
Job gets done
optimally productive -
Could do more ‘well’
Individual sdegree of Alignment
Likely to have performance,
attitudinal d/
More likely to have objective
d/ ‘ t ti l’
High probability of wasted
ff t/and/or behavioural
issues
and/or ‘potential’ issues
effort/ frustration
Degree of Aff tiC ti
Incongruent
Degree ofCommitment
AffectiveContinuance
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Alignment/Commitment matrix: Typical indicative map of reality in organisationsTypical indicative map of reality in organisations
Knows what to do/achieve but C ld d Fully
Fullycongruent
do/achieve but unlikely to achieve it
Could do more Fullyproductive4% 8% 21%
More likely to have
performance/ bilit i
Job gets done
Less than optimally
productive -Could do more
Individual’sdegree of Ali t
11% 10% 13%
capability issues
Likely to haveMore likely to have objective
Could do more ‘well’
High
Alignment
Likely to have performance,
attitudinal and/or behavioural
issues
have objective and/or
‘potential’ issues
High probability of wasted effort/
frustrationIncongruent
16% 12% 5%
Degree ofCommitment
AffectiveContinuance
Incongruent
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The unique VaLUENTiS ‘Five Domain’ Framework [for reference]
VaLUENTiS 5D Employee Engagement Framework
Framework [for reference]
Line-of-Sight Work Environment
VaLUENTiS 5D Employee Engagement Framework
Objectives awareness
Behaviour alignment
Role ‘fit’
P f t
Cultural elements
Team dynamics
Communication
ROrganisation
Performance management
Feedback
Capability
Resources
Local management
Physical environment
operating cultureOrganisation designPerformance/talent
management
Remuneration equity
Benefits
Role equity
Career progression
Competencies
Succession planning
‘Corporate’ LeadershipCommunicationDecision rights
Work valuesTrust
Recognition
Promotional aspects
Job/ Role architecture
Training/ Learning
Coaching/ Mentoring
Trust
Reward (equity) Development
VB-HR is a registered trademark of VaLUENTiS Ltd 2003© VaLUENTiS Ltd 2002-10
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The traditional view of employee engagement contributing to improved organisationalcontributing to improved organisational performance...
Higher HigherHigher employee
engagementHigher
productivity
Higherorganisation performance
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The emerging view of human capital management practice and employee engagement contributing topractice and employee engagement contributing to improved organisational performance (as a system)
More effectiveMore effectivehuman capital management
HigherHigher
i tiHigherproductivity
organisation performance
Higher employee
engagement
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However remember the converseHowever, remember the converse.....
More ineffectiveMore ineffectivehuman capital management
LowerLower
i tiLowerproductivity
organisation performance
Loweremployee
engagement
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The importance of employee surveysThe importance of employee surveys
“One of the most common ways ofymeasuring employee engagement isthrough the use of employee surveys.”g p y y
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Employee survey expertise model
HIGH
Employee survey expertise model
HIGH
nt
nag
em
ee
MYOPIC 20/20 foresight
pit
al
man
xp
ert
ise
man
cap ex
UNFOCUSEDBLIND
Hu
m
LOWLOW HIGHSurvey design & measurement
expertise
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HIGH
20/20
ert
ise MYOPIC 20/20
foresightResult:
en
t exp
eResult:
misleading or erroneous
Result: organisation has
sufficient in-depth, robust
nag
em
e erroneous interpretation
knowledge to act upon
pit
al
man
UNFOCUSED
Li it d i i ht
BLIND
man
cap Limited insight
due to limitations of
HCM
Result: end up with ‘garbage
in-garbage out’
Hu
m HCM knowledge
in garbage out syndrome
LOW HIGHSurvey design & measurement expertise
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HIGH
MYOPICMYOPICMYOPIC 20/20 20/20 20/20
ert
ise
MYOPICMYOPICMYOPIC 20/20 20/20 20/20 foresightforesightforesight
en
t exp
e16% 8%
nag
em
ep
ital
man
25%51%
man
cap 25%51%
Hu
m
UNFOCUSEDUNFOCUSEDUNFOCUSEDBLINDBLINDBLINDLOW HIGHSurvey design & measurement expertise
Sample: 147 employee surveys. All organisations with over 750 employees. ISHCM research team. Study carried out 2006-7
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Employee surveys and engagement: T B t ti f th fi ld (I)Ten Best practices from the field...(I)
View or apply employee surveys:
1. As part of a wider enterprise driven focus on people management2. With the appropriate importance (not as a tick-box exercise)pp p p ( )3. As organisational feedback/diagnostics as opposed to just garnering
opinion, using a robust engagement framework in the process4 As an embedded annual/quarterly process not as one-off interventions4. As an embedded annual/quarterly process not as one off interventions5. With the importance of science in understanding the data and the various
systemic relationships that provide greater understanding and drive more sustainable interventionssustainable interventions
Source: Employee Engagement: Factors of Successful ImplementationJournal Of Applied Human Capital Management, Volume 2 Number 1 2008
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Employee surveys and engagement: T B t ti f th fi ld (II)Ten Best practices from the field...(II)
View or apply the employee survey process:
6. As a ‘means to an end’ and not the other way around7. With emphasis on post-survey practice/intervention8. NOT as a means of just benchmarking externally (but they see the
advantages of benchmarking internally)9. In NOT over-focusing on the response ratio recognising that it’s just one g p g g j
element10.As mandatory, i.e. don’t postpone the process just because something
negative may have recently happened, i.e. it’s not about internal or g y y pp ,external PR
Source: Employee Engagement: Factors of Successful ImplementationJournal Of Applied Human Capital Management, Volume 2 Number 1 2008
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A quote from Albert himself...A quote from Albert himself...
“Everything should be made as simpleibl b t i l ”as possible, but no simpler.”
Thi h t ith th ti This has great resonance with the practice of effective people management and
tengagement.
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The original Sears modelThe original Sears model
RevenueEmployee
Internal service quality
Employee Satisfaction
External Service Value
Customer Satisfaction
Customer Loyalty
Revenue Growth
Profitability
Retention
Employee ProfitabilityEmployee Productivity
Putting the Service-Profit chain to workHeskett Jones Loveman Sasser Jr & SchlesingerHeskett, Jones, Loveman, Sasser Jr & SchlesingerHarvard Business Review Mar-Apr 1994
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Employee engagement and Organisation Performance [example]:Organisation Performance [example]:
We’ve moved on from the Sears model…
‘Macro’ model NHS version 1.11
Human Human C it l Portfolio mixSafetyWork valuesWork values
Leadership &
governance
Leadership &
governance
Shareholder valueTrust
performanceEmployer brand
Employer brand
Capital PracticesCapital
Practices External
Value
Proposition
External
Value
Proposition
Customer SatisfactionPatient
Satisfaction
Customer Loyalty
Patientexperience
Revenue Growth
Quality ofservices
ProfitabilityUse of Resources
Individual/ team
Productivity
Individual/ team
Productivity
Portfolio mixy
X-sellingClinical treatment
ServicePatient focus
Work values
Line-of-sightLine-of-sight
DevelopmentDevelopment
RewardReward
Work environmentWork environment
Employee EngagementStaff
EngagementPortfolio mixPrompt service
X-sellingEnvironmentLoyaltyp
Employee Retention
Staff Retention
‘Local’‘Local’ ComplianceCompliance
ServiceCommunity
Local Management
ocaManagement
Cost controlCost control
© VaLUENTiS VBM Analytics methodology 2008
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Delegate takeaway actions....EEDelegate takeaway actions....EE
1. Who is responsible for the project management of employee surveying in your organisation?
2. What definition of employee engagement do we use in our organisation?
3. What ‘Engagement’ model underpins this?g g p4. Are we aware of how effective our survey is as
an instrument in light of the survey expertise model across:ode ac oss
i. Question-Statement design?ii. Breadth and focus of questions?iii. Balance of QS question bank?iii. Balance of QS question bank?
5. What do answers to the questions posed in the ‘best ten practices’ tell us?
6 In light of my/our answers should we be 6. In light of my/our answers, should we be reviewing our organisational approach?
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Part ThreeA ‘bit’ on the Value-based HR function
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Organisations have a trade-off in terms of optimising performance againstof optimising performance against investment in effective human capital management practice.
More effectivehuman capital management
Higherproductivity
Higherorganisation performance
Th HR f ti i
Higher employee
engagement
The HR function is at the heart of this
trade-off.
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Value Based HR: The HCM-Org System model
HC ReportingOrganisation HC ReportingReporting
HR FcnPriorities
HC(M)Measurement
Enterprise
OrganisationMeasurement
HC/HR FcnStrategy
HR FcnActivitiesHR Governance
Human CapitalPerformance
HC Management
p
Organisation Performance
HC/HRF Value
HR FcnResourcing
gPerformance
Governance
Organisation Proposition(s)
gValue Drivers
43Organisation
Business ModelHR Function
Delivery Model
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Value-based HR: HR as a portfolio of service & compliance activitiesservice & compliance activities
HighValue Add Corporate Governance
ServicesCorporate Governance
ServicesSimplified Illustration
Professional& AdvisoryServices
Professional& AdvisoryServices
Nature ofActivity
Transaction Services
Employment ServicesEmployment Services
Transaction Services
Marginal
Complexity of InteractionComplexity of InteractionLow
Value Added
High
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The HR Function’s value parameters: (‘the magnificent seven’)( the magnificent seven )
From the organisation perspective...
1. Improving individual and team performance2 Aiding or enhancing decision-making2. Aiding or enhancing decision-making3. Minimising loss of productivity4 Ensuring efficient (HCM) process4. Ensuring efficient (HCM) process5. Fulfilling client-agent need6 Improving employee relations6. Improving employee relations7. 2-way communications with Line management
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Plus this...Th l ‘HR V l C ’The real ‘HR Value Curve’
Value contribution
(per unit)(per unit)
HR ‘Activity’ (The ’93’ as defined by VB-HR™ Profiler)
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HR and Line ‘value dissonance’HR and Line value dissonance
Value contribution
(per unit)‘Value
dissonance’
(per unit)
Means that HR can close the expectation gap...
HR ‘Activity’ (The ’93’ as defined by VB-HR™ Profiler)
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t3.1
Workforce Planning
1.1Employer brand
4.1Needs
Assessment
6.1Total Reward Programme
7.1Employee
Communications
2.1Organisational
Design/ Capability Planning –
5.1Performance
(Talent) Management
8.1Risk Management/
Regulatory Compliance/
9.1HRIS Strategy
10.1Payroll
HR GOVERNANCE
ORGANISATION DESIGN
RESOURCING TRAINING & DEVELOPMENT
PERFORMANCE (TALENT)
MANAGEMENTREWARD
EMPLOYEE RELATIONS
& COMMS
EMPLOYEE HEALTH &
SAFETY
HRIS & MEASURE-
MENTPAYROLL
em
en
t Assessment
8.2Risk Assessment
1.2HR Value
Proposition
Planning BU Level
2.2Organisational
Design/ Capability Planning –
Multi-country Level
2 3
3.2Candidate
Identification Services
4.2General Training
Design, Development and
Delivery
Management Assessment
5.2Performance
(Talent) Management Development
6.2Wage And Salary
Management
7.2Benefits
Compliance/ Security
9.2HRIS Planning
10.2Employee/ Manager
Interaction/ Problem
Resolution
an
ag
em
ap
1.3HR Delivery
Structure
1.4HC Reporting
2.3Organisational
Design/ Capability Planning –
Global Level
2.4Job Classification/
Evaluation
3.3Job Profile Services/
Requisition Processing
3.4Candidate Selection
4.3Training &
Development Management
4.4Technical/
Functional/ Policy & Procedure
5.3Performance
Reviews
5.4Succession
(Talent)
6.3Bonus/Incentive/
Stock Options Compensation
6.4Senior/ Executive
Compensation
7.3Attendance/ Leave Of Absence/ Exit
Interviews
7.4Return-To-Work
and Job Accommodation
10.3Time Reporting
8.3Accident
Prevention and Training
Programmes
8.4Health/Medical Programmes
9.3HRIS Support
9.4Employee
Research &
10.4Special Pay,
Adjustments And
tal
Ma
very
2.5Organisation Restructure/
Change/ Development
1.5HR Capability
Selection
3.5Temporary and
Contractor Staffing
& Procedure Training
4.5Employee Induction/
Orientation
Management Compensation Accommodation
5.5Attendance
Management
6.5Expatriate
Compensation
7.5Company Policies And Procedures
Programmes Modelling
7 6
8.5Incident Tracking
and Reporting
8 6
9.5Benchmarking
Deductions
10.5Payroll
Accounting/ Recon/ Manual Calculations & Disbursement
Cap
ity-D
eli
v
1.6HR Policy
1.7HR Performance/ Strategy Review/
A dit
2.6Acquisition/
Divestiture/ Start-up Due Diligence/
Support
3.6General
Employment Services
3.7Relocation
4.6Competencies/
Skills Model Development And
Assessment
4.7Leadership/ Management D l t
10.6Tax Reporting/
Audit
10.7Employee
Reimbursement
2.7Managing External
Consultants/ O t
5.6Employee Coaching
6.6Compensation Analysis/Pay
review
6.7Healthcare/
Welfare/ Statutory/ Other Benefit P
7.6Collective
Bargaining/ Negotiating/ Consultative Processes
7.7Work Practices
For Represented Employees
8.6Managing External
Consultants/ Outsource Providers
9.6Measurement and
Reporting
5.7Employee
Counselling/ Case management
9.7Employee
Records/Case management/Data
um
an
ti
vit
y Audit
3.8Outplacement
Services
Development
4.8Executive
Development
Reimbursement
10.8Statutory Benefits/
Miscellaneous Admin
1.8Managing External
Consultants/ Outsource Providers
Outsource Providers
Programmes Employeesmanagement
5.8PM Compliance
Support
6.8Pension
Management
6 9
7.8Conflict and Issue
Resolution
management/Data Maintenance
9.8Reporting/ Interfaces
Hu
Ac 10.9
Reporting/ Interfaces
3.9Employment Law
Services
3.10Consulting Line
Managers On St ffi I
4.9Career
Development
4.10Consulting On
Managerial Issues
10.10Managing Outsource P id
6.9Retirement Planning/
Counselling And Administration
7.9Corporate/
Community Social Responsibility
9.9Managing
ASP/software/ Outsource Providers
5.10Managing ASP/ERP/ Software
5.9Consulting To
Line Managers On Performance
Issues
6.10Managing External
Consultants/ O t
7.10Government/
Legislative Issues
Global HR Profiler™© VaLUENTiS 2003-10
3.11Managing
ASP/software/ Outsource Providers
4.11Managing ASP/ERP/ software/
Outsource Providers
Staffing Issues Managerial Issues ProvidersSoftware Providers Outsource
Providers
Legislative Issues
7.11Managing External
Consultants
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What happens to the HR spend?pp pm
en
tp
: n
ag
em
y m
ap
mp
le
l M
an
livery
t exam
ap
ita
ty-D
ecl
ien
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man
CA
ctiv
itLiv
e
Hu
m A
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Remember earlier the Human capital management as a ‘distilled collective’management as a distilled collective ...
Di itDiversityEmployee centricityEmployer brand
Organisation climate
p yLeadership
Human capitalmanagement effectiveness
Organisation communication
Performance orientationOrganisation design
HR FUNCTIONINFLUENCE
effectiveness Performance orientationResourcingReward & recognitionTalent managementTraining & DevelopmentHRHR governanceHR operational excellence
HR FUNCTIONCONTROL
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HR FUNCTIONS HR FUNCTIONS HAVE HAVE
CUSTOMERS
WRONG!WRONG!
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HR FUNCTIONS HAVE HR FUNCTIONS HAVE CUSTOMER-AGENTS;CUSTOMER-AGENTS;
MANAGERS AND MANAGERS AND EMPLOYEES ARE BOTHEMPLOYEES ARE BOTH
CUSTOMERS AND CUSTOMERS AND AGENTSAGENTS
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THIS IS NOT TO BE CONFUSED WITH THE GOOD PRACTICE OF ADOPTING A PRACTICE OF ADOPTING A CLIENT BASED ETHOS OR CLIENT BASED ETHOS OR INTERNAL SERVICE BASED INTERNAL SERVICE BASED APPROACH WITHIN THE HR
FUNCTION
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To illustrate.....To illustrate.....
Think of an organisation’s performance • Think of an organisation’s performance management system:
– Who is it for?– Who benefits?– Who are the ‘players’ to make it effective?
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Part ThreeA ‘bit’ on the summary
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‘THE REPOSITIONING OF HR’
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HR lexicon – new common termsTh dThen and now......
...1999 ...2009• Employee champion• HR shared services
• Employee engagement• Talent managementHR shared services
• Competencies• Business partner
Talent management• Employer brand• Human capital reportingBusiness partner
• Benchmarking• Knowledge management
Human capital reporting• Reward strategy• HCM intelligence• Knowledge management
• Diversity• HR scorecard
• HCM intelligence• Human capital
management• HR scorecard management
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HCM versus HRM (‘ten for starters’)S NJH blSource: NJH blog (hcglobal.blogspot.com June 2008)
HR FunctionToo often a major focus on delivery structure as an ‘end in itself’
HCM FunctionSees delivery structure as ‘a means’ with subordinated focusstructure as an end in itself
Cost-efficiency focus
Commonly defaults to ‘process’
subordinated focus
Value contribution focus
Defaults to ‘outcome(s)’ as mandate
Benchmarks simple operational metrics in the main
Espouses HRM integration
Comprehensive multi-faceted measurement (evaluation) framework
Executes HCM integration
Evidence based management not practised systematically
Mainly compensates for poor line t
Evidence based management as underlying ethos and embedded practice
‘Expert-monitor’ role to management, tmanagement
Still embodied with Industrial relations legacy
Interventions too often driven by cause
manager as agent
Operates with organisation performance perspective
Driven by business case supported with Interventions too often driven by cause without evaluated business case
In too many cases a rebadging of personnel
Driven by business case supported with cause where necessary
Evolutionary phase from current confusion
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With regard to people...With regard to people...
M t i d i Management is doing things right; things right; Leadership is doing the p gright things.
Peter F Drucker Peter F Drucker (November 19th 1909 - November 11th 2005)
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And so with the HR Function...And so with the HR Function...
HR M t i d i HR Management is doing things right; things right; HR Leadership is doing the p gright things.
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HR going forward (as HCM):HR going forward (as HCM):
• ‘Business’ mindset with evidence-based approach• Much stronger link between strategy, measurement g gy,
and people management effectiveness• Far more sophistication and integration of IT enabled
processes• More analytical and measurement reporting skills• Decreasing administrative focus (‘taken as a given’)• More innovation around HR functional delivery (for
example the ‘product-service’ construct)• HR function working as a collective not ‘silo’ strands• HR people having T-based skills profile not generalist
versus specialist
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Ten common areas of HR function i t
HCMimprovement.....Personnel
20142015
201620
201420152016
7...
20112012
2010
20132014
20112012
2010
20132014
20102010
The reality choice for HR functionsfor HR functions
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Delegate takeaway actions....VBHRFDelegate takeaway actions....VBHRF
1. Which function are we HCM or HR? (tick 1 only for each parameter)
1. HR or HCM2. HR or HCM3. HR or HCM4. HR or HCM5. HR or HCM6. HR or HCM7. HR or HCM8. HR or HCM9. HR or HCM10.HR or HCM
HR OVERALL HCM
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Questions
64