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Becoming Strategic: How HR can Earn (Even) More Respect by Tom Cox Cox Business Consulting, Inc. presented 07-Oct-2011 to the NHRMA 2011 Conference

Making HR more strategic NHRMA 2011

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Discover what it takes to earn even higher levels of trust and respect of your business peers and colleagues and begin to chart a road map to get there. Presented from the CEO's perspective, this workshop will show you what's preventing your HR department from being seen as the strategic asset it deserves to be. You will be empowered to move up from "mere compliance”, to synchronize your departmental plan with the firm's strategic plan, and ultimately to help shape your organization's direction and future.

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Page 1: Making HR more strategic NHRMA 2011

Becoming Strategic: How HR can Earn (Even)

More Respect

by Tom CoxCox Business Consulting, Inc.

presented 07-Oct-2011 to the NHRMA 2011 Conference

Page 2: Making HR more strategic NHRMA 2011

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How You Can Become(Even) More Strategic

What does “Strategic” Mean for YOU? What does it mean for your boss? Your firm? What Stands In Your Way?

– Hint: It's Not Your Boss

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Should we be trying this?

The discipline I believe so strongly in is H.R., and it’s the last discipline that gets funded. Marketing, manufacturing — all these things are important. But more often than not, the head of H.R. does not have a seat at the table. Big mistake.

– Howard Schultz, chairman, president and C.E.O. of Starbucks

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"Being more Strategic" - the Concept

Mintzberg's Five "P"s of Strategy Plan, Ploy, Pattern, Position, Perspective

"Be Strategic" today means "Drive Business Outcomes"

Strategic HR is beyond Admin and Compliance

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"Being More Strategic"- the Purpose

Cut Costs Grow Revenue Increase Margins / Profits

Connect everything to that frame of reference.

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$500m Car Dealer's HR Director

Sits on Strategy Council – and just did a name change on a benefits card

Being "strategic" doesn't mean you give up grunt work

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$500m Car Dealer's HR Director

Sits on Strategy Council – and just did a name change on a benefits card

Being "strategic" doesn't mean you give up grunt work

Didn't come up through HRYou have to know the whole business & how it

makes money

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$500m Car Dealer's HR Director

Sits on Strategy Council – and just did a name change on a benefits card

Being "strategic" doesn't mean you give up grunt work

Didn't come up through HRYou have to know the whole business & how it

makes money

Routinely Innovates – “Safeway Strategy”Became Self-Insured: Saved $1m/yrImproved Hiring: Reduced turnover by 68%

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$100m Publisher's HR Director

"Being Strategic" means "contributing at a higher level"

Get there by learning the WHOLE business Ask questions, show interest, learn When you are NOT selected for the key

project team, ask “why” in a self empowering way

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“Become More Strategic” in 5 Easy Pieces

1. Find Firm's Top 4 Strategic Issues

2. List all major HR programs (payroll, HRIS, hiring, training, etc.)

3. Chart the Strategic Issues vs. the HR Programs

4. Create an Impact Grid of HR programs

5. Assess, Measure and Build Trust

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Pay/Benefits HRIS Hiring Process Leader TrainingIssue 1Issue 2Issue 3Issue 4

“Usage Chart” of Strategic Issues vs. HR Programs

Examine how each program supports each major strategic issue.

Identify “As-is” and “To-be” and the gap.

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Strategic Impact Gridof HR Initiatives

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HR: Compliant, Helpful, or Strategic

Compliance: Layoff Paperwork is Right

Information: Monitor how employees are taking the news

Strategic Impact: Take responsibility for morale; Coach senior staff on how to deliver the news and how to respond to the employee reaction

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HR: Compliant, Helpful, or Strategic

Compliance: Training on Compliance

Information: Tracking Compliance before and after training

Strategic Impact: Take responsibility for increasing Compliance over time; report dollar impact of Compliance change vs. spending

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HR: Compliant, Helpful, or Strategic

Compliance: Train on Supervisory Skills

Information: Tracking Supervisory Effectiveness

Strategic Impact: Take Responsibility for Coaching Managers to Grow Supervisors' Skills; Track Morale vs. Target; Scorecard to CEO of Supervisor Effectiveness by Division

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“They Won't Listen” - Role of Trust

Nobody will take you seriously ... until they trust you

Dog Walker vs. Strategic Partner Assess Mistrust Measure Trust Build Trust

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How to Assess Mistrust - 10 Behaviors of Destructive Conflict

Active Destructive: winning at all costs displaying anger demeaning others retaliating intention invention

Passive Destructive: avoiding yielding hiding emotions self-criticizing working around

people

"Becoming a Conflict Competent Leader" by Tim Flanagan and Craig Runde

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How to Measure Trust -4 Elements of the 'ROCC of Trust'

Reliability: “I do what I said I would do” Openness: “You know my agenda” Competence: “I will tell you honestly

what I can and cannot do well” Compassion: “I will put your agenda

ahead of mine -- some of the time”

"Trust is Everything" by Aneil and Karen Mishra

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How to Build Trust - 8 Behaviors of Constructive Conflict

Passive Constructive: assuming positive

intention delaying response reflective thinking adapting to multiple

win conditions

Active Constructive: reaching out taking other person's

perspective expressing emotions

responsibly creating solutions

"Becoming a Conflict Competent Leader" by Tim Flanagan and Craig Runde

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Use the Impact Grid forHigher Trust

Where is HR under-performing? Where is HR not contributing strategically? How can we use outside experts better?

Hiring: assessments, recruiters HRIS: SaaS/Cloud

Do my C-Suite Partners Agree with my Grid?

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Taking Action Now - 1

“The Church is Near, but the Road is Icy.

The Tavern is Far, but I will Walk Carefully.”

– Hungarian Proverb

A 'roadblock' means:

1) It's not that important to you

2) You don't know what to do next

3) You don't know how to do it

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Taking Action Now - 2

“I Could Be Strategic If Only They Would Listen”Wrong. They will listen when you SHOW you can be strategic:

1) Commit to Make Strategic Impact

2) Build a Plan, Set Goals and Timelines

3) Recruit Advisors

4) Let Nothing Stop You

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Resources and References 1. NY Times 10-Oct-2010 article interviewing Howard Schultz,

chairman, president and C.E.O. of Starbucks

2. Mintzberg, Henry: "The Strategy Concept I: Five Ps For Strategy" in California Management Review, Fall 1987

3. "Trust is Everything" by Aneil and Karen Mishra

4. "Becoming a Conflict Competent Leader" by Tim Flanagan and Craig Runde

5. "Lean IT - Enabling and Sustaining Your Lean Transformation" (Mike and Steve, SteadyImprovement.com)