Orchestrating Higher Levels of Strategic Impact for HR

by Tom CoxCox Business Consulting, Inc.

presented October 2013 to the NHRMA Conference, Tacoma WA

HRACO

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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

What “Being more Strategic” Might Look/Smell/Taste Like

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Hum of intense, trusting, structured

problem solving

Smooth taste of the finest coffee, bought with

savings from HR-led initiatives

Luxurious buttery feel of the leather

portfolio that came with her promotion

Awards on the wall for “Best Place to Work”

“New Office” smell from new furniture as firm has grown 20% per year

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How You Can Become(Even) More Strategic

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

– Hint: It's Not Your Boss

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How Hard is it?

You can Rise Above Other HR Departments:Track & Report “people measures” to Senior ManagementHave HR Staff who understand KPIsUse “human capital” measures to help firm reach KPIs

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How Hard is it?

You can Rise Above Other HR Departments:Track & Report “people measures” to Senior Management: 78%Have HR Staff who understand KPIs: 31%Use “human capital” measures to help firm reach KPIs: 12%

Source: Sue Jones, KLS / Conference Board

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"Being More Strategic"- the Language of Strategy

Cut Waste – in the “Lean” sense Grow Revenue & Quality 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 processed 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 processed a name change on a benefits card

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

Didn't come up through HRKnow 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 HRKnow the whole business & how it makes money

Routinely Innovates – “Safeway Technique”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 3-5 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

“GANS 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 managers on how to deliver the news; Find ways to keep tabs on best people

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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 improvement vs. cost of training

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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 Build relationships

www.Manager-Tools.com “professional update” meetings

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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 Network from HR

Find your “cousins” Get to know them Do them favors Build relationships

www.Manager-Tools.com “Career Tools” section

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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 and Mentors

4) Volunteer

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Taking Action Now - 3

“I need to know more”Maybe. Comb your program and find:

1) Sue Jones’ program on Measuring Strategic HR

2) The program that stretches you toward strategic impact

3) The program containing the help your “cousins” back home need

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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. "Trust is Everything" by Aneil and Karen Mishra

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