Transitions and TransformationsTransitions and Transformations

SHAPING THE ROLE OF HR: Tactics for Strategic Change

Dan ScottiTraining and Learning Development

SESSION OBJECTIVESSESSION OBJECTIVES

• Broaden perspectives• Challenge the conventional wisdom regarding

HRM• Peek into the future

Survey Says…..Survey Says…..

• A recent survey by the Towers Perrin Group revealed that:– 50% of HR professionals see themselves as

strategic business partners within their organizations

– But only 17% of HR professionals say they are invited to participate in the initial stages of major enterprise initiatives

Closing the Gap Requires Closing the Gap Requires

• A change in mindset• HR• The Enterprise

• Continuing to performing the basic functions well

• Organizational Literacy• Courageous Leadership

A New Mindset:A New Mindset:HR as an Investment, Rather than an HR as an Investment, Rather than an ExpenseExpense

• Historically: HR and people were not considered tangible assets. The ‘means of production’ was a machine bolted to the factory floor. People merely operated it.

• Today: The intangible of human capital (what people know + their level of commitment to the organization) is the prime driver of organizational results.

A New ParadigmA New Paradigm

• HR is shifting from focusing on the organization of the business to focusing on the business of the organization

The GoalThe Goal

• The intent of the new HR paradigm is to achieve alignment among the

» Strategy» Structure» Culture

• of the enterprise.

Strategic HRStrategic HR

• Focus• Alignment• Process integration• Information management• Innovation• Measurable results

Strategic HRStrategic HR

• Partner

• Change agent

• Passionate about people as the source of organizational success

The FoundationThe Foundation

• Traditional HR Functions • Employment• Compensation• Benefits• Training/Development

Just a ThoughtJust a Thought

If you keep on doing what you’ve always done, you’ll keep on getting what you always got………

Emerging FunctionsEmerging Functions

Additional value added:• Multi level performance analysis – people,

teams, the organization • Aligning HR process to drive organizational

results• HR as a component in the enterprise value

proposition, in vision & mission achievement

High Gain HR QuestionsHigh Gain HR Questions

• How do people create value for the organization?

• How does HR contribute to and measure the value creation process?

HR Evolution:Personnel”HR Evolution:Personnel”Functions Transactions

Compliance

Record keeping

Financial Focus Cost minimized

Key Strategies Rule knowledge

Process efficiency

Products/Services Payroll & benefit administration

Job descriptions/standards

Training

Compliance

Metaphor The enforcer

Paradigm Technical correctness

HR Evolution: “Human Resources”HR Evolution: “Human Resources”Functions Advisory services

Problem solving

Operational issues

Financial focus Cost control

Key strategies HR practices

Business context

Products/services Recruiting, Performance evaluation, Payroll, Position management, Employee relations, Training & Development, Risk management

Metaphor Business Partner

Paradigm Process Improvement

HR Evolution: “Human Capital”HR Evolution: “Human Capital”

Functions Capacity building

Opportunity identification

Strategic issues

Financial focus Investment analysis (ROI)

Key strategies Systems thinking

Strategic consulting

Products/services Human capital planning, Talent management, Leadership development & succession planning, Performance culture, Competency systems, Metrics

Metaphor Strategic Partner

Paradigm Transformation

HR Strategic ArchitectureHR Strategic Architecture

HR Function

HR professionals with strategic competencies to deliver products/services that drive organizational success

HR SystemPerformance driven, strategically aligned

policies & practices

Human Performance

Strategically focused competencies, motivation, skills,

capabilities

The Strategic HR ModelThe Strategic HR Model

StrategicHR

Leadership

The HR Value Proposition:

Linkage to Results

Business Literacy: HR knows the business

Doing the ‘basics’ well

Know the HRBOK

Personal credibility of the HR practitioner

An Emerging HR MindsetAn Emerging HR Mindset

• Focused on adding value for the customer• Proactive• Willing to assume risk• Results driven

HR Best PracticesHR Best Practices

HR Practice Measures

Bottom 10% Top 10%

Qualified applicants per hire 8 37

Annual training hours:

Per new employee

Per experienced employee

35

13

117

72

% employees receiving performance appraisal

360 feedback41%

4%

95%

52%

% hired based on a validated selection test

4% 30%

Tactic: A Consultative ApproachTactic: A Consultative Approach

• A phased, modular, repeatable and iterative process for HR professionals so that customer relationships are enhanced.– Strengthen the HR value proposition– Create enterprise HR bench strength– Manage HR professionals as an enterprise asset

A Best Practice: HR Consulting A Best Practice: HR Consulting

• Setting the Stage• Entering, Scoping, Contracting• Diagnosis• Determining Action, Planning, Implementation• Assessing, Closing

SkillsSkills

• For each Phase:– Structure– Challenges– A set of consultative skills

• An Action Learning Activity to transcend the learning

HR CHALLENGESHR CHALLENGES

• Focus strategically- act tactically• Assessment

– Develop/apply new measures

– Audit measures

– Analyze & report

• Change planning and implementation• Continuous improvement

A Couple of Closing ThoughtsA Couple of Closing Thoughts

• Be careful of yesterday’s success, because success tastes so good it dulls the appetite for risk…..

• The significant problems in life cannot be solved from the same mode of thinking that created them………