What do your clients really want from Human Resources?

Insights from SaskPower's Journey

IPMA MeetingNick Langshaw – Leader, Business Process Improvement

October 2010

Over the years, HR professionals haveOver the years, HR professionals haveprogressed from handling transactionalprogressed from handling transactional

duties to being business partners. duties to being business partners. But, to be on par with decision makers on the mostBut, to be on par with decision makers on the most

senior level, HR will need to move up a stepsenior level, HR will need to move up a stepto business provocateur.”to business provocateur.”

Lee Sears Lee Sears -- Bridge Partnership (U.K.)Bridge Partnership (U.K.)

What would your HR Department look like if you went undercover to find out things were really working?

What do we want to achieve?

Dr. John Sullivan: Five Levels of HR Contribution model

Today

2010Thesis is “the bridge”

The Future

Where were we rated?

The Future

1

12

9

1 1

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10111213

Level One Level Two Level Three Level Four Level Five

HR Contribution Model Level

Num

ber o

f Res

pond

ents

Level Two: 12 participants Level Three: 9 participants

Joseph Coates (who has writtenJoseph Coates (who has writtenextensively on the future of HR),extensively on the future of HR),

suggested that: "HR is in its own boxsuggested that: "HR is in its own boxof limitations, rather than concentratingof limitations, rather than concentrating

on the value it can add to the organization.”on the value it can add to the organization.”

LinkedHR Think Tank 2010LinkedHR Think Tank 2010

Methodology

Two methods used: Personal Interviews – 10 individualsFocus Groups: 2 sessions – 14 individuals

Total participants: 24Diversity focus: all groups representedOrganizational cross-section: data received from all areas with the exception of two support groups

Resulting Data: 300 pagesCoding System applied to identify themes

1. Thesis preparation (July/August 2008)

2. Conducted research (September/October 2008)

3. Paper written: November 2008 to February 2009

4. Quality Control Review: March 2009

5. Thesis Approval: April 2009

6. HR Review (Hackett Group) May 2009

7. New role created: August 2009

8. Living the Learning: 2010

Timeline

Research Question

The question:

What changes could SaskPower’s Corporate Human Resources team implement to create more effective and strategic business partnerships?

Interview Questions

1. In an ideal world, what would the Human Resources function within (department) look like to you?

2. If you think about the Human Resources function from a strategic perspective, is that different from what we have today? If so, how?

3. How would a partnership approach between corporate Human Resources and the business differ from the way we do business today?

4. Is there something that we could do from a people perspective that would significantly, yet positively, impact your business?

Interview Questions Cont’d.

5. What gets in the way of effective Human Resource management at SaskPower?

6. Can you tell me about a time when you saw the HR function at SaskPower working really well, either in your part of the organization and/or corporately.

7. Have you seen an HR practice in another organization that youthought might be a good fit at SaskPower? If so, what was it andwhy did you think it was useful or innovative?

Big Picture Results

Five themes:

1. Service Delivery/Approach

2. Understanding Client Needs

3. Alignment

4. Consistency

5. Accountability

Findings

Finding 1: There is a need for a Senior Leader in HR (VP)

Finding 2: The Opportunity to become a Strategic Partner Already Exists: Support the business in dealing with their Employee Engagement projects

Finding 3: A New Service Approach Would Better Meet the Needsof Clients

Finding 4: Clients Are Seeking More Opportunities to CollaborateWith HR

Finding 5: The Majority of SaskPower’s Senior Management TeamIs Not Aware of the HR Strategy

Detailed Results

Service Delivery / ApproachNeed for:• Strong, Visionary, Consistent Leadership• Review of Service Model• Greater ease of Contact (Who do I call?)• Proactive approach versus reactive• More timely service• Partnership/Collaborative Approach• Greater understanding of our internal clients• Adoption of best practices

Detailed Results

Understand Client Needs

Need to:• Get to know our client groups personally• Build mutual respect• Create more trust between clients and HR• Build an understanding of client’s unique HR issues • Create shared values and goals• Understand how external markets impact clients

Alignment

Need to:• Create strong goal alignment across three levels:Corporate, Business Unit/Support Group and HR.

• Focus on those things we know will improve theorganizational culture.

• On HR initiatives, make sure there is strategicalignment between the Strategic Direction, BusinessPlans, HR Strategy and Individual work plans.

• Same approach for HR initiatives in CorporateHR and Business Unit HR

Detailed Results

Consistency

Needed in the areas of:• HR Policy: Creation, Application andInterpretation of processes, procedures andadvice

• Focus on core service delivery excellence• Identification and communication concerning HRpriorities (why are we doing what we are doing).

Detailed Results

Detailed Results

Accountability

Need for:• Clarification of HR roles and responsibilities(Corporate and Business Unit)

• Implementation of rewards and recognition• Consequences for negative workplace behaviours• Enhanced performance management• More resources available to support projects and tasks• HR to receive more executive/senior mgmt. support

Key Recommendations

1. Bridge the senior leadership gap in HR until a vice-president is appointed;

2. Revise the HR strategy and communicate it extensively;

3. Pursue HR initiatives that lead to improved relationships;

4. Review the existing service delivery methods, structure, andmodel;

5. Embrace a more customer-centric, collaborative approach between clients and HR.

Hackett Audit

The Future• SaskPower engaged the services of Hackett (USA)

• HR Audit conducted spring 2009

• Thesis validated against Global Best Practices

• Gap analysis completed

• Enhancements needed in multiple areas

• New approach/model recommended

• List of projects identified

• Projects and tasks integrated into 2009/2010 work

plans

• HR needed to dedicate resources - new position endorsed and created

Hackett Recommendations

The Future

• Need to Standardize Processes.

• Service Model Requires Review (roles/access/delivery).

• Standardize and better utilize HR computer systems.

• Embrace a project management approach to client requests.

• Create a cross-organizational HR Council

Gap Analysis

The Future• Identify metrics that define world-class performance.

• Establish performance targets.

• Track and share progress with business leaders.

• Eliminate complexity.

• Simplify and standardize work processes.

• Eliminate low value-added work.

Gap Analysis continued

The Future

• Establish end to end business process ownership

• Leverage and interconnect technologies

• Implement enterprise IT architecture

• Define enhanced service delivery model

• Create infrastructure to create required changes

What We’ve Done

The Future• Took a process improvement approach

• Created an HR strategy and rolled out to HR team

• Lobbied to get a senior HR leader at the Executive table

• Provided details to the former President, research participants, key stakeholders and Business Unit HR Consultants

• Used gap analysis to guide creation of HR’s 2010 business plan

What We’ve Done

The Future• Used mind mapping software to create a transformation (project) plan

• Initiated detailed process analyses (ongoing)

• Created a cross-functional advisory committee in HR

• Began to implement some jointly-identified solutions

What We’ve Done

The Future• Audited our Recruitment function (our pilot group)

• Updated, tweaked or eliminated recruitment policies

• Created a process flow chart

• Published recruitment plan and process documents onto our intranet

• Began soliciting customer feedback, monitored and acted on responses

What We’ve Done

The Future• Created a cross organization team to look at HR systems and created two year improvement plan

• Dedicated one FTE + one Gradworks intern to the initiative

• Provided key employees with training in Change Management (Prosci) Process Reengineering (Hammer) and HR Metrics (PWC – Saratoga Institute)

Outcomes sought

The Future• HR initiatives aligned with Corporate Mission, Vision,

Values, strategies, key drivers and objectives.

• HR team more effective – clarity in purpose, roles,

processes and decision making.

• HR processes become more efficient and effective.

• Key metrics measure HR performance.

• New HR service model framework meets the emerging

needs of the organization.

Outcomes sought

The Future• Easier access to HR services.

• Greater credibility and integrity given the business’s

investment in HR (time, resources, finances).

• Demonstrate HR’s commitment to supporting and leading

business results.

• So HR becomes a valued partner with the business – that

instills confidence in achieving business objectives and

leads business success from a people/talent perspective.

Ongoing Challenges

The Future• No Vice President of HR/Executive Sponsor

• HR Council not created

• Service agreements not in place

• Customer Surveys (all of HR) not being conducted

• Loss of GM/Project Sponsor

• New leadership growing into roles

• New President September 2010 (unclear expectations)

• Reluctance to attach our HR managers to specific business partners.

The Bottom LineThe Bottom Line

Einstein said: "Strive not to be Einstein said: "Strive not to be successful, but rather to be successful, but rather to be of value." of value."

What does HR’s value What does HR’s value proposition look like in your proposition look like in your organization?organization?

A Collaborative ApproachA Collaborative Approach

Honored to share my learning Honored to share my learning with peers.with peers.

Curious to see what happened Curious to see what happened at RQ Health District.at RQ Health District.

Grateful for the interest and Grateful for the interest and support from my HR colleagues support from my HR colleagues at SaskPower.at SaskPower.

Willing to help others undertake Willing to help others undertake an improvement initiative. an improvement initiative.

Positive change creates a ripple effectfor ourselves and others….

Suggested Resources:

Bridge Partnership: http://www.bridge-partnership.com/index.html

CTV’s Undercover Boss: http://shows.ctv.ca/UndercoverBoss.aspx

Bersin & Associates, HR Framework: http://www.bersin.com/News/EventDetails.aspx?id=12701

HR implications of Emerging Business Models

http://josephcoates.com/pdf_files/234_HR.pdf

HR in an Era of New Strategic Opportunities

http://josephcoates.com/pdf_files/236_HR.pdf

ReRe--Inventing Human Inventing Human ResourcesResources

JohnJohn--Paul CullenPaul CullenExecutive Director Executive Director –– Workforce Workforce

Planning & EmploymentPlanning & EmploymentHuman Resource ServicesHuman Resource Services

Regina Qu’Appelle Health RegionRegina Qu’Appelle Health Region

ObjectivesObjectives

Share experience of reShare experience of re--inventing HR in inventing HR in RQRQApply the themes identified in Nick’s Apply the themes identified in Nick’s presentationpresentationDiscuss key lessons, observationsDiscuss key lessons, observations

ThemesThemes

Service Delivery / ApproachService Delivery / ApproachUnderstanding Client NeedsUnderstanding Client NeedsAlignmentAlignmentConsistencyConsistencyAccountabilityAccountability

Background / ContextBackground / Context

HR strugglingHR strugglingSignificant turnover in leadershipSignificant turnover in leadershipChallenged to meet service expectationsChallenged to meet service expectationsFracturedFracturedLacking unified vision, direction, purposeLacking unified vision, direction, purposeReputation deterioratingReputation deteriorating

What to do?What to do?

Running away is not an option…

Mike Higgins Mike Higgins –– VP HRVP HR

Assessed the situationAssessed the situationRecognized the need for changeRecognized the need for changeSet immediate priorities Set immediate priorities –– took actiontook action

Create stabilityCreate stabilityGet Leadership Team in placeGet Leadership Team in placeCreate platform for moving thru transitionCreate platform for moving thru transition

ReRe--Inventing HR: Key ElementsInventing HR: Key Elements

Steering Committee Steering Committee Leadership Team plus key clientsLeadership Team plus key clients

Advisory NetworkAdvisory NetworkCross section of clientsCross section of clients

Internal Project ManagerInternal Project ManagerExternal Expert ConsultantExternal Expert ConsultantImplementation TeamImplementation Team

HR LeadersHR Leaders

Design OptionsStrategic Context Implementation Support & Momentum

Project Management, Communication, Change Management

Assemble Steering Committee (SC)

Mobilize & Launch ProjectInformation GatheringRQHR Strategic PlanExec InterviewsHR Mgr InterviewsMgr SurveyHR SurveyHR Leading PracticesPatient First ReportResourcing AnalysisCommunication with HRCommunication with HSAN

Sept – Oct 2009 Nov – Dec 2009 Jan – Apr 2010 May – June 2010

Re-Inventing Human Resources

Draft of HR Strategic Plan Who is HR’s client?Services

Structure Options ConsideredCentralized vs

DecentralizedService Delivery

OptionsDraft HR Org ChartDraft HR DepartmentsCommunication with HRCommunication with ExecutiveCommunication with HSAN

Finalizing HR Strategic PlanFinalizing HR Org ChartMenuCase Mgmt ApproachIntro to LEAN MethodologyCommunication with HRExecutive ApprovalCommunication with HSANImplementation Team

Who Does WhatImplementation PlanIngrain new way of workingA few big WINS for 2010Educate HR

StrategyConsulting / Case

MgmtSupport for HR Mgmt TeamSupport for HR TeamsCore processes & systems

RecruitmentWorkforce PlanningPerformance MgmtSuccession MgmtLeadership DevReporting & Dec

Support

Survey ResultsSurvey Results

Areas Identified for ImprovementAreas Identified for Improvement

Knowledge of client’s Knowledge of client’s businessbusinessProducts/ServicesProducts/ServicesTimeliness of Timeliness of responsesresponsesConsistency of Consistency of responsesresponsesEfficiency of Efficiency of processesprocessesCompetency of staffCompetency of staff

Service Delivery / Service Delivery / ApproachApproachUnderstanding Client Understanding Client NeedsNeedsAlignmentAlignmentConsistencyConsistencyAccountabilityAccountability

Service Delivery / ApproachService Delivery / Approach

Leadership & VisionLeadership & VisionCommitted VP, Committed VP, Leadership TeamLeadership Team

Service Delivery Service Delivery ModelModel

HR Team integrationHR Team integrationClearly defines clientClearly defines clientCustomer service Customer service commitmentcommitment

ReRe--Define Define RelationshipRelationship

Partnership, Partnership, collaborationcollaborationService AgreementsService Agreements

Increase Accessibility Increase Accessibility ReRe--designed web designed web pagepage

Understand Client NeedsUnderstand Client Needs

To add value, must create and provide a To add value, must create and provide a valued servicevalued serviceCustomer SurveyCustomer SurveyAdvisory NetworkAdvisory NetworkEach member of the Leadership Team is Each member of the Leadership Team is assigned a portfolioassigned a portfolioEach portfolio has dedicated HR TeamEach portfolio has dedicated HR Team

AlignmentAlignment

Must be both Strategic and OperationalMust be both Strategic and OperationalHR must be structured to meet both needsHR must be structured to meet both needs

Requires choices and trade offsRequires choices and trade offsIntegrated Service Delivery ModelIntegrated Service Delivery Model

Team within a TeamTeam within a Team

ConsistencyConsistency

Client Service ProtocolClient Service Protocol6 step process for managing client issues6 step process for managing client issuesDerived from case management practiceDerived from case management practiceEngage, assess, decide, solution, monitor / Engage, assess, decide, solution, monitor / evaluate, concludeevaluate, conclude•• Communicate, verify lead, documentCommunicate, verify lead, document

AccountabilityAccountability

Balance of authority, accountability and Balance of authority, accountability and responsibilityresponsibilityCommunication and transparency throughout Communication and transparency throughout processprocessKnow your client Know your client –– commit, follow throughcommit, follow through

Many partners, 1 or 2 clientsMany partners, 1 or 2 clients

ReRe--defined relationship: Partners and defined relationship: Partners and collaborators, advisorscollaborators, advisorsEveryone is accountable, but in different waysEveryone is accountable, but in different ways

Lessons / ObservationsLessons / Observations

Large Scale Change Management ProjectLarge Scale Change Management ProjectDriven by Senior Leaders Driven by Senior Leaders –– Involve Others Involve Others Must be Committed to the ProcessMust be Committed to the ProcessHave a Plan, Execute ItHave a Plan, Execute It

Change ManagementChange Management

Understand current state Understand current state –– why change is why change is neededneededDevelop vision for where you need to go Develop vision for where you need to go ––future statefuture stateInclude those affected Include those affected –– clients and staffclients and staffManage transitionsManage transitionsDetermine what needs to be done to Determine what needs to be done to achieve future stateachieve future stateDevelop & execute plan Develop & execute plan

LeadershipLeadership

Senior Leaders must own the projectSenior Leaders must own the projectMust be active participants Must be active participants

Steering Committee Steering Committee –– develop plandevelop planImplementation Team Implementation Team -- executeexecute

Involve othersInvolve othersRegular communicationRegular communicationFeedback: Listen, follow up, follow throughFeedback: Listen, follow up, follow through

CommitmentCommitment

Be prepared for a long journeyBe prepared for a long journeySmall steps Small steps –– don’t try to change the don’t try to change the system over nightsystem over nightMust be shared visionMust be shared visionGotta believe it!Gotta believe it!

Plan / ExecutePlan / Execute

Third party support recommendedThird party support recommendedTreat this as a project: Treat this as a project:

clear objectives clear objectives deliverables deliverables timelinestimelines

Implementation TeamImplementation Team

ConclusionConclusion

Change that is purpose driven, meaningful Change that is purpose driven, meaningful and inclusive will create value to the and inclusive will create value to the organizationorganizationCreating value will lead to success for HR Creating value will lead to success for HR within the organization you servewithin the organization you serve