The Business Value Approach to Strategic HR

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The Business Value ApproachTo Strategic HR

Amy WilsonVice President & Principal Analyst

Research theme for 2011 & beyond

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Dan Roam: “Convey Ideas with Pictures”

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This is Sam.He’s an HR Leader

Sam cares about people.

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Sam is determined

that people be managed well.

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But he’s perplexed.

He works hard to create value

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But it seems like there is a wall.

And, the business leaders are on the other side of it.

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Could Sam go inside the business?

What tools and information would he bring?

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A look back in time ...

the world of HR

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In the Beginning ...

Transactions & Services

the world of HR

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the world of HR

Level 1

Level 2

Compliance

Transactions & Services

In the Beginning ...

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the world of HR

Level 1Basic employee svcs (hire, pay, questions)

Level 2

Compliance

Outsourced

Became ...

Transactions & Services

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the world of HR

Compliance

Streamlined

Became ...

Transactions & Services

Level 1

Level 2Basic mgr svcs (headcount, reports, policies)

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the world of HR

Level 1

Level 2

Compliance

Outsourced

Streamlined

Kept

Became ...

Transactions & Services

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People Process Analysis

the world of HR

Transactions & Services

Level 2

Compliance

And made way for ...

Level 1

Risk

Growing

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People Process Analysis

the world of HR

Transactions & Services

Level 2

Compliance

Some impact

And made way for ...Level 1Internal monitoring(retention, engagement, movement)

Risk

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People Process Analysis

the world of HR

Transactions & Services

Compliance

More impact

And made way for ...

Level 1

Risk

Level 2External monitoring(benchmarks, org comparisons)

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People Process Analysis

the world of HR

Transactions & Services

Level 2

Compliance

Some impact

More impact

And made way for ...

Level 1

Risk

Growing

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People Process Analysis

the world of HR

Transactions & Services

Level 2

Compliance

Some impact

More impact

But there’s a problem ...

Level 1

Risk

The Business

Growing

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People Process Analysis

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the world of HR

Transactions & Services

Risk & Compliance

The Solution ...

The Business

Embedded Problem Solving

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Sam is hesitant to go inside.

What does the business leader care about?

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Time to change perspective.

What really matters?

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Business Value

Switch to a Business Lens …

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Business ValueThe Business Lens

1. 2. 3.

Set the number

Make the number

Promise the number

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Business ValueThe Business Lens

1. 2. 3.

Set the number

Make the number

Promise the number

People? People?

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Major Challenges for Business Leaders

Promise the number

Make the number

Set the number

People? People?

Preparing

for future

promises

Getting best work

Finding people to solve

problems

Allocating Resources

Business Value

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Business Value

Complicating Factors for HR …

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epar

ing

futu

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fo

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pro

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Getti

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best

wor

k

Find

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to so

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peop

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pro

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s

Allo

catin

g

Res

ourc

es

Business ValueSolving Business Problems

ComplianceManaging Risk

Business Value

Important – tend to focus here first

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epar

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futu

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pro

mise

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Getti

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bes

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Find

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Peop

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Allo

catin

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Res

ourc

es

Business ValueSolving Business Problems

ComplianceManaging Risk

Business Value

Informal

FormalInformation about People

More information available than ever before. What will you share?

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Business Value

And what about these new disruptive technologies?

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epar

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futu

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fo

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pro

mise

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Getti

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bes

t wor

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Find

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to so

lve

Peop

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Allo

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Res

ourc

es

Business ValueSolving Business Problems

ComplianceManaging Risk

Business Value

Informal

FormalInformation about People

Controlled

Ad hoc

Input

Collaborative & Interactive tools

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epar

ing

futu

re

fo

r

pro

mise

s

Getti

ng

bes

t wor

k

Find

ing

to so

lve

Peop

le

pr

oble

ms

Allo

catin

g

Res

ourc

es

Business ValueSolving Business Problems

ComplianceManaging Risk

Business Value

Informal

FormalInformation about People

Controlled

Ad hoc

Input

Secured

Optimized

Access

Mobile & Mash-up tools

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Business ValueSolving Business Problems

ComplianceManaging Risk

Business Value

Two ends of a spectrum of

important work

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Business ValueSolving Business Problems

ComplianceManaging Risk

Business Value

Instead of focusing first on

compliance

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Business ValueSolving Business Problems

Managing Risk & Compliance

Business Value

What if we oriented toward solving business

problems?

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The Business Value Approach to Strategic HR

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Sam was hesitant to go inside.

He didn’t know what to bring with him.

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We want Sam to go in well-equipped:

With tools and information that will be most useful.

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The Business Value Approach is a good start for Sam.

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What problems

am I solving?

What role should I

be playing?

What tools

should I be

accessing?

What information is most useful to

me?

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Through our research, more help for Sam is on the way!

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If you are a business leader, HR leader, or vendor and would like to contribute your perspective, please contact me!

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41

Amy Wilson

amy@constellationRG.comTwitter: @awilswww.wilsoninsight.com

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