3/26/2018

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Victory Through Organization:How HR can best create value?

Montreal HR conferenceMarch 2018

Dave Ulrichdou@umich.eduww.rbl.net

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?

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Selected books

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?1.  Recognize that value is defined by receiver more than giver

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HR is not about HR, but value created

Whatwewant(values,beliefs,goals)

Whatyouwant(values,beliefs,goals)

WhatwedoActions/behaviors

WhatyoudoActions/behaviors

HR Others

Valueisdefinedbythereceivermorethanthegiver.

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Implications for HR: HR is not about HR

INDIVIDUAL

LEADERSHIP

HR PRACTICE

ORGANIZATION

COUNTRY

Value is defined by the receiver more than the giver

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?1.  Recognize that value is defined by receiver more than giver2.  Serve internal and external stakeholders

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HR stakeholders

Who are the customers or stakeholders for HR?

How do we create value for them?

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Who are stakeholders for HR?

Partners/Dealers 

Customers

Employees

Investors/Owners 

Line Managers

HRStakeholders

Communities/regulators

Market value• Financial performance

• Intangibles• Risk 

Reputational value• Social responsibility• Regulatory oversight• Cultural awareness

Customer share• Target customers• Customer intimacy 

Collaborative value• Partnerships• Outsourcing

Strategic value• Shaping strategy• Creating organization traction

Employee value/ Productivity • Competence• Commitment• Contribution

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HR outside in: Evolution of HR

HR

Evo

luti

on

Time

Respond: HR Administrative Utility

Partner: HR Strategy

Anticipate: HR Outside/In

Serve: HR Functional Expertise

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HR outside in: HR practices with CustomerHR domain Examples of outside in

StaffingAre we the employer of choice of employees our customers would choose?

Training/developmentDo we involve customers/investors in designing, attending, and delivering training and development?

Performance management

Do our standards for effective performance match customer or investor expectations?

Rewards Do we involve our customers and/or investors in allocating rewards?

CommunicationDo our communication tools link employees and customers or investors?

Leadership Have we created a leadership brand where leaders actions are tied to customer or investor expectations?

Culture Does our culture have the right events, patterns, and identity?

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HR Outside/In: investors and leadership

Investors:How do we value our investments?

Leadership:How do leaders and

leadership create value?

Leadership Capital Index:How do investors realize the market value of leadership?

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• CEO and investors

• Private equity investors

• HR and investors

• Leading investors speak out

The Leadership Capital Phenomenon

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Overview: Leadership Capital Index

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?1.  Recognize that value is defined by receiver more than giver2.  Serve internal and external stakeholders3.  Appreciate and anticipate the business context

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Recognize environmental change

Right Wrong 

Well 1 2

Poorly 3 4

Which is the best cell to be in? Which is the worst cell to be in?

Environment

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Four Forces: New Context for HR

Terms: next practice, transformation, disruption, future of work, etc.

Question: What are the contextual trends that will shape the future of work and require transformation or disruption of organizations, HR, and people?

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Four Forces: New Context for HR

VUCA World(volatility, uncertainty, complexity,

and ambiguity)Reality tv to reality politics,

organizations, life

HR is not about HRHR creates value

STEPED ChangesSocial, technological, economic,

political, environmental, demographic changes

Personal Affect(4 I’s)

Intensity, individuation, isolation, indifference

Stakeholder ExpectationsInside (employee, manager)Outside (customer, investor)

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Future of work (4 forces for change)

• STEPED: knowing business context, with focus on digital finance and digital HR

• VUCA/DRET: increasing pace of change

• Stakeholders: removing boundaries among stakeholders

• Individuals: finding meaning

HR is not about HR(value defined by receiver

more than giver)

• Redefine business partner from a role to an overall logic

• Make sure that HR creates value for multiple stakeholders inside and out of the business

Future of Work and HR

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?1.  Recognize that value is defined by receiver more than giver2.  Serve internal and external stakeholders3.  Appreciate and anticipate the business context4.  Deliver key outcomes of individual talent and organization capability

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Relative impact of individual vs. organization

Individual(talent, competence, workforce,

people)

Organizational(culture, capability, workplace,

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22Outcomes:HR value creation: What value does HR create?

Organization Capability

High TalentWorkforce

People

CultureWorkplaceProcess

Leaders Leadership

Low

Low High

Individual Ability

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23HR value creation: Importance of talent and teamwork

What percent of the time is the leading scorer (winner of the Golden Boot) on the team that wins the World Cup?

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Importance of talent and teamworkHow many of the “Best Actor/ Best Actress… Director” Academy Award winners in the last twenty years were also in the “Best Picture” for that year? …

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HR outcome: Talent

COMPETENCE(ability to do the work)

COMMITMENT (willing to do the work)

CONTRIBUTION(creating well being at work)

Talent (productivity) =

• Bringing people INTO,

• Managing THROUGH

• Moving OUT

of the organization

Enact an employee value proposition

•What do I get?•What do I give?

Well being through growth mindset

• Why growth mindset?• How to build growth

mindset• Remove threats• Approach values• Attach to people

ENGAGEMENT

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Do I feel responsible for my own engagement?

Does my boss give me the skills to do my job?

Do I like my boss, working conditions, teammates, etc.?

4ACTIVE AGENT

3MEANING/PURPOSE

2COMMITMENT/

ENGAGREMENT

1SATISFACTION

Does my boss help me find personal meaning from the work I do?

Evolution of employee sentiment

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Commitment: Active engagement

• Did I do my best to set clear goals today?

• Did I do my best to make progress towards my goals today?

• Did I do my best to find meaning today?

• Did I do my best to work with and learn from my boss?

• Did I do my best to create a positive work environment today?

• Did I do my best to build positive relationships today?

• Did I do my best to be engaged today?

• Did I do my best to earn my pay?

Do we encourage active engagement?Reference: Marshall Goldsmith

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HR outcome: organization

Morphology(Structure)

Systems(Alignment)

Capability(Identity)

Eco-organization(Connect)

Platform

Designed around:• Customer (outside in)• Innovation (of all types)• Agility (speed & experiment)

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HR outcome: leadership

Dimension of leadership

Question Challenge

Why Why does leadership matter to key organization stakeholders?

Build the business case for leadership

What What makes an effective individual leader and leadership capability?

Articulate the leadership brand, with both code and differentiators

How…

BUILDHow can I help build leadership throughout the organization?

Create leadership brand throughout the organization

How…

BEHow do I ensure that I turn what I know I should do into what I do?

Know and accomplish the 7 factors for leadership sustainability

30Summary of Leadership Code 1.0 and 2.0Domain Description 1.0 2.0

StrategistHow we position firm to win in the future

• Have a point-of-view about the future

• Think and act in a customer centric way

• Create strategic traction• Engage the organization in developing strategy

• Encourage outside/in thinking with customers, investors, communities through co-creation

• Master complexity to create simplicity• Envision and work in eco systems or networks

ExecutorHow we get things done in current state

• Ensure technical proficiency• Build teams• Follow a decision protocol• Ensure accountability• Make change happen

• Manage risk with action (avoid recklessness)• Prioritize/satisfice to focus attention• Align around the right capabilities or culture in system

Talent Manager

How we treat employees today

• Communicate• Create aligned direction• Strengthen competency• Use resources to cope with demands• Create a positive work environment

• Create emotional commitment, become meaning maker• Deal with unconscious bias as a concept of diversity

Human Capital

Developer

How we invest in tomorrow’s talent

• Map the workforce• Link firm and employee brand• Help people manage their careers• Find and develop next-generation talent• Encourage networks and relationships

• Support talent to meet their goals and values, help them design their own career journey

• Become a multiplier by making others better

Personal Proficiency

How we gain personal leader characteristics

• Practice clear thinking• Know yourself• Tolerate stress• Demonstrate learning agility• Tend to character and integrity• Take care of yourself• Have personal energy and passion

• Navigate paradox• Act with courage (face reality, take bold decisions)• Be curious and orchestrate creativity

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?1.  Recognize that value is defined by receiver more than giver2.  Serve internal and external stakeholders3.  Appreciate and anticipate the business context4.  Deliver key outcomes of individual talent and organization capability5.  Use digital HR 

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How do we win in the customer, investor, community, and employee marketplaces?

How does HR support the business digital

agenda?

Overall logic for digital (outside in)

How does HR build a digital HR agenda?

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HR role in business digital agendaBuild a business case

Create general awareness of digital trends

Facilitate a teamForm and facilitate a multi functional team

Articulate business digital outcomesHelp define the business outcomes of digital

Craft digital business agenda stateHelp shape the agenda and action for business digital strategy

Audit current digital stateHelp perform an audit of digital state

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• Build emotional connection (belonging)• Create social network • Share experiences through technology

• Use technology to upgrade practices in people (staffing, training), performance management, communication, and work

• Build technology platforms to efficiency manage HR processes; often through existing firms (Oracle, SAP, Workday)

4CONNECTION/EXPERIENCE

3INFORMATION

2HR INNOVATION/EFFECTIVENESS

1HR EFFICIENCY

• Share information for business impact• Access structured and unstructured data• Bring external information inside

Implication of Digital on HR: Evolution/Phases of HR Technology

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• Build emotional connection• Create social network • Share experiences through technology

• Use technology to upgrade practices in people (staffing, training), performance management, communication, and work

• Build technology platforms to efficiency manage HR processes; often through existing firms (Oracle, SAP, Workday)

4CONNECTION/EXPERIENCE

3INFORMATION

2HR INNOVATION/EFFECTIVENESS

1HR EFFICIENCY

• Share information for business impact• Access structured and unstructured data• Bring external information inside

Implication of Digital on HR: Evolution/Phases of HR Technology

36Quick Test: Which of the following is the leading cause of mortality?

a. High blood pressureb.High cholesterolc. Inactivity (no exercise)d. Social Isolatione. Drinkingf. Obesityg. Depression 

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Social Isolation / Loneliness

The U.S. surgeon general recently stated that loneliness is more serious a health problem than opiates. To illustrate this rising problem, the number of Americans with “no friends” has tripled since 1985. The U.K. has just named a Minister of Loneliness to create policies to deal with the challenge of social isolation.

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Technology and Isolation• ____% of teens have access to smartphone; millennials look at their phones over ____

times a day.

• From data on national surveys with over 500,000 American teenagers ..• Those who spend more time on social media (Snapchat, Facebook, Instagram or

smart phone) are more likely to agree with “the future seems more hopeless”.• Those spending time in sport, homework, or socializing had fewer mental problems.

• Those who gave up Facebook reported feeling less depressed at the end of the week

• 12th graders who are satisfied with themselves or life overall has dropped 10% in last 5 years; loneliness is up 10%.

Jean Twenge author of “iGen: Why Today’s Super-Connected Kids Are Growing Up Less Rebellious, More Tolerant, Less Happy”.

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Belonging

Belonging is active, not passive (I invite someone to connect; make a bid). It requires persistent work and does not occur haphazardly (I make the

choice of spending time to engage and connect). It endures over time (it is not an event, but a pattern). It is tied to shared values (I share something meaningful to me with those I

belong to). It shapes well-being (belonging increases a sense of personal well being

and closeness).

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How do we win in the customer, investor, community, and employee marketplaces?

How does HR support the business digital agenda?

HR value created through digital

How does HR build a digital HR agenda?

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?1. Recognize that value is defined by receiver more than giver2. Serve internal and external stakeholders3. Appreciate and anticipate the business context4. Deliver key outcomes of individual talent and organization capability5. Use digital HR 6. Design the right HR department

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Run the HR function as if it is a business within a business.

Overriding HR re-design principles

1. Differentiate clearly between transactional (foundational or essential) and strategic HR work.

2. Make the HR organization follow the logic and structure of the business organization.

3. Make the HR organization follow the flow of any professional service oriented organization.

4. Focus on relationships more than roles

HR Department

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Overview: HR Criteria and Summary AssessmentStage of HR Evolution

9 Criteria for HR Department Respond

(efficiency)Serve

(functional excellence)

Partner(HR

Strategy)

Anticipate(Outside/in)

1: HR ReputationWhat is the reputation of the HR department?2: HR Context/Definition of successWhat are the criteria (settings) that shape HR work?

3: HR strategyWhat is the mission or strategy of the HR department?4: HR Design: process, roles, and structure How is the HR department organized?5: HR and organization capability How does HR facilitate the definition and creation of the right organization for the business?6: HR analyticsHow do we make better HR investments and choices?

7: HR practicesHow do we create HR practices?8: HR ProfessionalsWhat do HR professionals need to be, know, and do?9: HR Work StyleHow does HR go about doing its work?

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HR Work Style Keys to an effective

relationshipSome specific behaviors applied to HR

Share a common purpose

Find that you are better together than apart, being part of a community accomplishes more than being alone.

Respect differencesExpress appreciation for what is good and right more than criticism for what is not right (20:1 positive to negative ratio in a couple; 5:1 in a team).  

Govern, accept, connect

Manage expectations … 60+% of problems in marriage are not solved, but managed … Managing decision rights and agree about how decisions get made.

Care for othersBe delighted in the other person’s success; celebrate successes and embrace the other in failure; spend time together 

Share experiencesRespond to bids (87% of bids are responded to in successful relationships)Turn to each other not away; built emotional bank account

Grow togetherHave shared meaning you strive forLearn from the past, but don’t be stuck in it; focus on the future and what can be (feed forward)

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?1. Recognize that value is defined by receiver more than giver2. Serve internal and external stakeholders3. Appreciate and anticipate the business context4. Deliver key outcomes of individual talent and organization capability5. Use digital HR 6. Design the right HR department7. Build the right HR competencies

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Assumptions of Competency work

Focus on outcomes, not just competencies(independent and dependent variables)

Avoid self report or single report(judge myself by my intent; others by my behavior)

Turn competencies into expectations and build them(invest in making expectations real)

Integrate different concepts(values, behaviors, learning maps, etc.)

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Round 7 Competency Model

Strategic enablers

Foundationalenablers

Core drivers

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HR competencies: Key Findings• 9 overall competency domains• 3 core drivers; 3 strategic enablers; 3 foundational

enablers

What are overall competencies for HR professionals?

• Be a credible activistHow do you get invited to the table?

• If inside (employee, line), be credible activist• If outside (customer, investor), be a strategic positioner

Which stakeholders are you representing while at the table?

• Navigate paradox (manage tension and divergent convergent cycle)

How do you create business value?

• Recognize the importance of HR department• Build capabilities (information, speed, culture, collaboration

How do you build an HR department?

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Competences of HR professionals over 30 yearsMichigan, RBL, and many global partners over the seven rounds HR competency studies

Round 11987

Round 21992

Round 31997

Round 42002

Round 52007

Round 62012

Round 72016/7

Total respondents 10,291 4,556 3,229 9,182 10,063 20,023 31,868

Business units 1,200 441 678 692 413 635 1,395Associate raters 8,884 3,805 2,565 5,890 8,414 17,385 27,904HR participants 1,407 751 664 1,192 1,671 2,638 3,964

[1]Business

Business Knowledge

(3.17)

Business knowledge(3.28)

Business knowledge(3.27)

Business knowledge(3.44)

Business ally(3.50) Strategic Positioner

(3.89)

Strategic positioner

(4.13)Strategic contribution (3.65)

Strategic architect(3.68)

[2]Human Resources tools 

HR delivery

(3.33)HR delivery(3.41)

HR delivery(3.49)

HR delivery(3.69)

Talent manager & organization designer(3.80)

HR Innovator & Integrator(3.90)

(4.02)Human capital curator (4.01)

Total rewards steward (3.88)

[3]HR Information,Analysis,Operations 

HR technology(3.02)

Operational executor(3.53)

Technology or information Proponent(3.74)

Technology and media integrator(3.92)

Compliance manager (4.32)

Analytics designer and interpreter(4.01) 

[4]Change

Change

(3.65)Change(3.68)

Change(3.68)

Change and culture were combined into strategic contribution(3.65)

Culture and steward(3.80)

Change champion(3.93)

(4.01)Culture and change champion 

(4.03)[5]

Organization and Culture 

Culture(3.42)

Organization Capability builder(3.97)

Paradox navigator(3.99)

[6]Personal 

Personal credibility

(3.78)Personal credibility(4.03)

Personal credibility(4.13)

Credible  activist(4.19)

Credible activist(4.23)

Credible activist

(4.33)

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Logic for the session

0 to 10:  how much value do I create?

How could I create more?1. Recognize that value is defined by receiver more than giver2. Serve internal and external stakeholders3. Appreciate and anticipate the business context4. Deliver key outcomes of individual talent and organization capability5. Use digital HR 6. Design the right HR department7. Build the right HR competencies8. Make line managers owners  

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Roles for HR Outcomes

Line Managers as Owners

• Fully engaged• Make final decision• Accept accountability• Ensure follow up

HR Professionals roles• Architect: create frameworks, blueprints

• Coach: help leaders change behavior and deliver results

• Design and deliver: provide HR integrated, simple solutions

• Facilitate: manage the process and systems for change

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Let’s stay connected!!!

For more information or follow up, contact Dave Ulrich at dou@umich.edu

@dave_ulrich

Invite me to connect with you on LinkedIn to view my regular posts with insights and tips.