RE-TOOLING THE HR BUSINESS

PARTNER:

Standards & Competencies

Marius Meyer, CEO: SABPP

5 June 2014

@SABPP1

Agenda

• Business partner challenges for the future

• Competence & capabilities required for tomorrow

and beyond

• Responsibility for self & ongoing development

• Conclusion

The role of HR …

• Identifying talent issues before they impact the

business

• Adjusting HR strategies to respond to changing

business needs

• Understanding how HR business partners can

support the business

The results of our research indicated that our top three priority

CCR’s include the following:

SABPP Strategic Vision

“To Professionalise the HR Profession”

SABPP - ETQASABPP – Registration

CommitteeHRD

Committee

Business Leader’s

Expectations

OR

Critical Customer Requirements

(CCR’s)

Key HR Business Partner Outputs

Competencies

Care

er P

ath

s

Le

arn

ing

So

lutio

ns

SABPP Strategic Vision

“To Professionalise the HR Profession”

SABPP - ETQASABPP – Registration

CommitteeHRD

Committee

Business Leader’s

Expectations

OR

Critical Customer Requirements

(CCR’s)

Key HR Business Partner Outputs

Competencies

Care

er P

ath

s

Le

arn

ing

So

lutio

ns

1Communicating organisational culture/values to Employees

1Keep abreast of new legislation that may impact on business

1Preparing for different situations

2Responding to organisational changes

2Managing conflict between managers

2Assessing Employee attitudes

3Enforcing standard HR policies and procedures

3Resolving political problems in the execution of business plans

4Respond to manager needs

4Retention of talent within the business

5Capacity building/Skills development

6Quickly responding to employee needs

6Communication around HR in general

11Tracking trends in employee behaviours and attitudes.

11Keep the line updated on HR initiatives

13Prioritizing across HR Needs

25Utilising new business strategies

30Developing the next generation of leaders

32Identifying talent issues before they can impact on the business

35Identifying HR Metrics

42Adjusting HR strategies to respond to changing business needs

43Understanding how HRB’s can support the business

48Redesigning Organisational Structure around strategic objectives

54Understanding the Talent needs of the business

TOTALCCR

1Communicating organisational culture/values to Employees

1Keep abreast of new legislation that may impact on business

1Preparing for different situations

2Responding to organisational changes

2Managing conflict between managers

2Assessing Employee attitudes

3Enforcing standard HR policies and procedures

3Resolving political problems in the execution of business plans

4Respond to manager needs

4Retention of talent within the business

5Capacity building/Skills development

6Quickly responding to employee needs

6Communication around HR in general

11Tracking trends in employee behaviours and attitudes.

11Keep the line updated on HR initiatives

13Prioritizing across HR Needs

25Utilising new business strategies

30Developing the next generation of leaders

32Identifying talent issues before they can impact on the business

35Identifying HR Metrics

42Adjusting HR strategies to respond to changing business needs

43Understanding how HRB’s can support the business

48Redesigning Organisational Structure around strategic objectives

54Understanding the Talent needs of the business

TOTALCCR

PARADIGM SHIFT

OPERATIONAL MINDSET

• Day-to-day tasks

• Transactional HR

• Getting things done

• Crisis reactive management

• Doing things now

• Training for tasks

• Managing people

• Internal focus

• Short-term measures

STRATEGIC THINKING

• Long term priorities

• Transformational HR

• Creating value

• Proactive management

• Planning things for future

• Organisational capability

• Leading people

• External focus

• Strategic measures - metrics

Business partner challenges

• HR Competence as Strategic Partner and Talent

Management - HR Competency Models

• Line management – people skills

• HR Governance - accountability

• HR Risk Management

• New role to impact ethics in organisations

• HR Technology and Social Media

• HR standards and metrics – integrated reporting

IBM CEO Study 2012:

Factors impacting organisations

1 Technology factors (71%)2 People skills (69%)3 Market factors (68%)4 Macro-economic factors5 Regulatory concerns6 Globalisation7 Socio-economic factors8 Environmental issues9 Geopolitical factors

IBM CEO Study 2012

Biggest Opportunities for HR

IBM: Working beyond Borders

• Cultivating creative leaders

• Mobilising for greater speed and flexibility

• Capitalising on collective intelligence i.e. collaboration

Most important organisational

capabilities over the next five years

IBM: Working beyond Borders

31%

33%

34%

37%

28% 30% 32% 34% 36% 38%

Innovation

Client connectivity

Execution speed

Leadership

Most important leadership qualities

over the next five years

IBM: Working beyond Borders

35%

52%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Ability to balance work and lifedemands

Integrity

Creativity

Top facts about HR

• Human Capital is the biggest concern for

CEOs (PwC).

• Only 18% of CEOs feel confident that they

have the right people in place to execute

strategy (CEB).

• Human Capital is the biggest risk in

business (HCI Africa).

• Skills crisis is the top obstacle to economic

growth.

• Strikes cost SA R197 million per day.

More facts about HR

• SA losing R12 billion a year due to absenteeism.

• Only 5% of employees understand business

strategy.

• World-wide only 13% of employees actively

engaged.

• Companies with engaged employees outperform

others by 202% (Dale Carnegie).

• Companies with good HR Practices outperform

others by treating HR as critical business function,

these companies are 105% more profitable.

• Average ROI on wellness programmes: 300%.

Critical questions

1. How many of you would like to eat in a

restaurant without standards?

2. Or stay in a hotel without standards?

3. Or send your child to a school (or pre-

school) without standards?

4. Or get operated in a hospital without any

standards?

5. Or use an airline without standards?

Then when it comes to HR …

Why do we continue to

manage people and govern

the most precious part of our

organisations (i.e. people)

without standards?

HR Talent Management

“Quite possibly the biggest challenge that needs to occur in

HR has to do with talent management – not elsewhere in

organisations, but how talent management in HR is a case of

the shoemaker’s children lacking shoes. Our results suggest

that HR often doesn’t have the right talent; all too often it has

talent that is inferior to the talent in other parts of the

organization.”

Ed Lawler III & John Boudreau (2009)

Achieving Excellence in Human Resources Management, Stanford University Press

SOUTH AFRICAN HR COMPETENCY MODEL

STRATEGY

TALENT MANAGEMENT

HR GOVERNANCE, RISK, COMPLIANCE

ANALYTICS & MEASUREMENT

HR SERVICE DELIVERY

5 HR

CAPABILITIES

LEADERSHIP & PERSONAL CREDIBILITY

ORGANISATIONAL CAPABILITY

SOLUTION CREATION & IMPLEMENTATION

INTERPERSONAL & COMMUNICATION

CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY

CO

RE

CO

MP

ET

EN

CIE

S

HR & BUSINESS KNOWLEDGE

DUTY TO SOCIETY

ET

HIC

S

PR

OF

ES

SIO

NA

LIS

M

4

PILLARS

SABPP Professional Values

RESPONSIBILITY

I

RESPECT

INTEGRITY

COMPETENCE

Operational Management Consistency in the

Management of People

One of the toughest things to be is consistent

Why standards ?

The chair that you're sitting on, or the desk your computer is perched on, are held together by bolts and screws.

Humble bolts and screws also hold together our children's bicycles - and also the aircraft we trust our lives to during business trips or holiday travel.

The diversity of screw threads used to represent big problems for industry, particularly in maintenance, as lost or damaged nuts and bolts could not easily be replaced. A global solution is supplied in the ISO standards for metric screw threads.

The credit card you may have used to buy your holiday can be used worldwide because all its basic features are based on ISO standards.

We are so familiar with many objects, like credit or telephone cards, that we tend to assume they just "fell out of the sky". In fact, the ease with which we can use them can be traced back to an ISO standard.

Today standard users account for 78% of the FTSE 100, 53% of the Nikkei, and 44% of both the Fortune 500 and Hang Seng listed companies.

Globally standards are a framework for consistency &

continuous improvement and managing risk through

controls

“Consistency is far better than rare moments of greatness “

Strengthening the human factor in management systems

Global approaches to standards

• Production and safety lead – ISO standards

• Professional standards – accounting

• Top global companies – their own standards

• Canada – HR Standards & Metrics

• USA – HR Metrics (SHRM)

• ISO HR project started

• South African National HR Standards

Why a national HR Standard?

• We need to improve the quality of HR

practice.

• HR will not be seen as a true profession

without standards.

• Inconsistencies – practices, sites, business

units, companies, industries.

• Too many bad examples of things going

wrong – Marikana, Medupi.

• Raising the bar for the HR profession and

business impact.

468 HR Leaders developing

HR Standards for South Africa

HR Standards Facilitators

Kate Dikgale-Freeman Michael Robbins Linda Chipunza

BUSINESS STRATEGY – HR BUSINESS ALIGNMENT

❶ StrategicHRM

❷ TalentManagement

❸ HR RiskManagement

HR ARCHITECTURE

HR VALUE & DELIVERY PLATFORM

❹Work-force

planning

❺

Learning

❻Perfor-mance

❼

Reward

❽Well-ness

❾ERM

❿OD

⓫ HR Service Delivery

⓬HR Technology

(HRIS)

Prepare

Imple-ment

Review Improve⓭ HR MEASUREMENTHR Audit: Standards & Metrics

H R

C O

M P

E T E N C

I E SSABPP HRM SYSTEM STANDARD MODEL

HR Standards Supporters

HR Standards Journey

Phase 1:

HR MANAGEMENT SYSTEM STANDARD

(21 May 2013)

Phase 2:

HR MANAGEMENT SYSTEM APPLICATION

STANDARD(20-21 Aug 2013)

Phase 3:

HR PROFESSIONALPRACTICE STANDARDS

(14 May 2014)

“WHAT” STANDARD

What are the elements of the HR system?

13 elements:DefinitionObjectives

Implementation(High level)

“HOW TO” STANDARD

How can we apply the HR System standard?

How to apply the 13 standard elements

“WHAT” AND “HOW” OF SPECIFIC PROFESSIONAL PRACTICE STANDARDS

• Succession Planning• Employment Equity• Career Development• Engagement• Learning culture• Change management• Organisation design

STRATEGIC HRM STANDARD ELEMENT:

IMPLEMENTATION

Framework of HR policies & programmes

Environmental scan (PESTL)

HR structure, service model and capability

development

People strategy

HR strategic agenda

Organisation’s strategic intent

HR strategic agenda

HR business

plan

People strategy

Allocate roles & responsibilities

(line/HR/support functions)

MONITOR & EVALUATE

Strategic HR: It is all about alignment

Why do we need the HR

Service Delivery standard

element?

• The HR service at both strategic and operational levels

must be delivered efficiently and effectively.

• The HR service must support managers and employees

where and when they need the support.

• As HR Professionals we have to commit to good service.

• At the same time, the HR service must adhere to

professional standards, which uphold the values of the HR

profession.

HR SERVICE DELIVERY

DEFINITION

HR Service Delivery is the influencing and

partnering approach in the provision of HR

services meeting the needs of the

organisation and its employees which enables

delivery of organisational goals and targets.

SABPP (2013)

HR SERVICE DELIVERY

OBJECTIVES

11.2.1 To ensure timeousness, consistency, credibility and quality in the delivery of HR

services, using resources productively and measuring and improving on delivery.

11.2.2 To ensure sustainability of HR practices within the organisation.

11.2.3 To support the effective management of the human element in an organisation by

means of an effective HR service delivery model and system.

11.2.4 To provide effective professional advice and guidance to managers and employees

regarding the correct implementation of labour laws and other legislative requirements, HR

policies, practices and procedures.

11.2.5 To establish functional standards for accurate HR record-keeping and administration,

developing and implementing an end-user friendly administrative process and system

enabling proper data management.

11.2.6. To measure employee engagement on the one hand, and satisfaction with the

delivery of HR services on the other hand.

SABPP (2013)

HR/Line relationship?

HR SERVICE DELIVERY SYSTEM

MONITOR & EVALUATE

HR strategy

HR policies and procedures

Clear roles and responsibilities for

management of people in the workplace

HR service delivery model and system

Service Level Agreement

Compliance monitoring

Employee communication

Laws, regulations,

codes, agreements

Management and employee support – guidance,

consultation, coaching

HR manager’s response to

metrics?

HR MEASUREMENT SYSTEM

MONITOR &

EVALUATE

What are the drivers behind those issues?

What issues do we need to manage

(risks/opportunities)?

What are the outcomes specified

in the SLA?

How can we measure those in a Balanced

Score Card?

METRICS

METRICS FOR PEOPLE MANAGEMENT IN THE ORGANISATION

METRICS FOR HR EFFECTIVENESS/

EFFICIENCY

How can we measure those

drivers?

Management system & resources to collect

and report

Financial and operational reporting

systems in organisation

The need for consistency and quality

National HR Governance Strategy Alignment

HR Professional Standards:• HRMS (13)• HRMSAS (13)• HRPPS (30+)

HR Products/Services:• CPD• Mentoring• Professional registration• Research• HR Academy – QCTO• Curriculum standards

HR Metrics:• National HR Scorecard• HR Service Standards

HR Auditing:• Internal Audit• External Audit

King IV:HR Governance

ISO: HR

IntegratedReporting

HR Competencies

HR External Auditing Process

1. Request for Audit

2. Receive Assessment Tool

3. Agree on date(s) for audit

4. Site visit (1 Lead Auditor + 3 Auditors) –

scoring instrument & consensus meeting

5. Audit Report and presentation

6. Certification

Conclusion

HR standards and competent HR business

partners are needed to improve the

consistency and quality of HR management.

Best wishes with your HR business partnering

work as the HR leaders at your companies.

For more information, contact us on executiveoffice@sabpp.co.za

FOLLOW US ON :

@sabpp1

@mariussabpp

#hrstandards

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Let us meet or exceed the national HR

Standards

professional@sabpp.co.za (Professional Registration)

kenneth@sabpp.co.za (Stakeholder Relations)

penny@sabpp.co.za (Research)

naren@sabpp.co.za (Learning & Quality)

marius@sabpp.co.za (Strategy inputs)

voice@sabpp.co.za (Social media)

Website : www.sabpp.co.za Blog: hrtoday.me

New office: 8 Sherborne Str, Parktown, South Africa

Tel: +27 11 482-8595 Fax: +27 11 482-4830

Cel: 082 859 3593 (Marius Meyer)