20110308_HR Champions Prex Materials

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20110308_HR Champions Prex Materials_FINALE.pptx

HR Department needs to play a more significant role inmanagement and development of people

1

In the last twenty years, companies have initiated turnaround efforts. Through downsizing,

consolidations, and restructurings, these organizations have reduced costs and shed unprofitable

businesses, while quality and reengineering efforts removed inefficient steps of work processes. All

these efforts helped turn-around businesses, making them sleeker, swifter and more streamlined.

Turnaround, however is not transformation.

Transformation changes the fundamental image of the business, as seen by customers and

employees.Transformation focuses on creating mindshare more than market

share.Transformation results when customers and employees move from fundamentally different

images of a firm to similar issues.

David Olson Ulrich (Dave Ulrich),

Ross School of Business Professor – University of Michigan


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20110308_HR Champions Prex Materials_FINALE.pptx 2

The Changing Nature of Human Resources

Becoming a Strategic Partner

Becoming an Administrative ExpertBecoming an Employee Champion

Becoming a Change Agent

HR for HR

What’s Next?HR Business Partner Example

Conclusion


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Strategic HR role focuses on aligning HR strategies and policieswith business strategy

5

Takeaway Box

! The deliverable is strategy execution

– HR practices help accomplish business

objectives! The metaphor is the “strategic partner”

–

HR professionals participate in the

process of defining business strategy

– They ask questions that move strategy to

action – They design HR practices that align with

business strategy

! The primary actions is translating business

strategies into HR priorities

– HR professionals identify HR practicesthat make the strategy happen

Rationale For Strategic Partner

Translating business strategies into HR practices helps abusiness in three ways:

• The time from theconception to the execution

of a strategy is shortened

Adopt ToChange

• Customer service strategieshave been translated into

specific policies andpractices

Better MeetCustomer

Demands

• Business is more effective inexecuting the strategy

AchieveFinancial

Performance

By fulfilling this role, HR professionals increase the capacityof a business to execute its strategies!

Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

Strategic Partner

SUPPORTING SLIDE


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As a caretaker of corporate infrastructure, HR professionals ensureorganizational processes are designed and delivered efficiently

6


Takeaway Box

! The deliverable is administrative efficiency

– HR professionals ensure efficiency in HR

processes and… –

…hire, train, and reward managers who

increase productivity and reduce waste

! The metaphor is the “administrative expert”

– HR professionals ferret out unnecessary

costs, improve efficiency and… – …constantly find new ways to do things

better

! The primary actions is undertaking

activities leading to continual reengineering

– HR administrative services are sharedacross company divisions while…

– …maintaining service quality for their

users

Rationale For Administrative Expert

HR professionals design and deliver efficient HR processes,managing the flow of employees through the organization:

While this role has been down-played, its successfulaccomplishment continues to add value to a business !

Administrative Expert

Staffing

Training

Appraising

Rewarding

Promoting

Retaining

SUPPORTING SLIDE


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The employee contribution role encompasses HR professionalsinvolvement in the day-to-day concerns and needs of employees

7

Rationale For Employee Champion

HR professionals become the employees’ champions bylinking employee contributions to the organization’s success:

With active employee champions who understandemployee’s needs and ensure that those needs are met ,

overall employee contribution goes up!

Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996; Maslow’s Hierarchy of Needs

Takeaway Box

! The deliverables are increased employee

commitment and competence

– HR professionals strive to understandand fulfill employees’ needs

!

The metaphor is the “employee champion”

– HR champions personally spend time

with employees and…

–

…train and encourage managers in otherdepartments to do the same

! The primary actions is providing employees

with resources that meet their demands

– HR professionals creatively seek and

implement the means for employees… –

…to voice opinions and feel ownership in

the business

Employee Champion

Sel

f-actualization

Esteem

Love/Belonging

Safety

Psychological

SUPPORTING SLIDE


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HR professionals managing transformation become both culturalguardians and cultural catalysts

8

Change Agent

Rationale For Change Agent

Change refer to the ability of an organization to improve thedesign and implementation of initiative: Takeaway Box

! The deliverables is capacity for change

– HR executives help employees let go of

old and adapt to a new culture! The metaphor is the “change agent”

–

HR professionals need to facilitate a

dialogue about values…

– …as they identify new behaviors that will

keep a firm competitive over time! The primary actions are identifying and

framing problems, building relationships of

trust, solving problems, and creating (and

fulfilling) action plans

– HR professionals who are change agentshelp make change happen

As change agents, HR executives help organizationsidentify a process for managing change!

Levels of

evolution

Time


SUPPORTING SLIDE


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Most companies scored higher in the operational quadrants andlower in the strategic quadrants

9

HR Roles in Building a Competitive OrganizationFocus vs. Activities


FUTURE/STRATEGIC

FOCUS

DAY-TO-DAY/OPERATIONAL

FOCUS

PEOPLEPROCESSES

Strategic Partner Change Agent

Administrative Expert Employee Champion


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HR roles move from a focus on operational to strategic roles, whereemployee contribution decreased over the past two decades

10

HR Roles in Building a Competitive OrganizationFocus vs. Activities


FUTURE/STRATEGIC

FOCUS


FOCUS

PEOPLEPROCESSES




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Responsibility for delivering the four roles is shared, as indicatedby an allocation of points

11

HR Roles in Building a Competitive OrganizationShared Responsibility


FUTURE/STRATEGIC

FOCUS


FOCUS

PEOPLEPROCESSES

Field HR

5

Line Managers

5

HR

3

Line Managers

4

External Consultant

3

HR2

Line Managers6

Employees2

Corporate HR5

Outsource3

Information Technology2




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Strategic Partner

Employee Champion

Change Agent

HR professionals can both represent employee needs andimplement management agendas

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Takeaway Box

! As strategic partners with managers,

– HR professionals partner with managers

and are seen as part of management –

This may alienate employees from both

HR and management

– The employees felt betrayed and rated

that HR function as not meeting their

needs! As employee champions with managers

and employees,

–

HR professionals ensure that employees

needs are voiced to management

– This may alienate the HR function from

management – Management see HR people as

insensitive to business realities

Strategic Partner versus Employee Champion

HR professionals should balance the tension inherent inbeing a strategic partner on the one hand and an employee

champion on the other:

HR professional must achieve a balance between the needsof potentially competing stakeholders to gain their trust!


Strategic Partner vs. Employee Champion


SUPPORTING SLIDE


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HR professionals dealing with cultural change need to be bothcultural guardians of the past and architects of the new cultures

13

Takeaway Box

! Businesses must balance stability and

change

! Businesses must balance the past and thefuture

!

Businesses must balance the benefits of

free agency and control

! Businesses must balance efficiency and

innovation ! When working to create new cultures, HR

professionals

–

Should simultaneously consider the

impact of the new culture on

administrative process and…

–

…recognize the hold that the old cultureretains over both employees and

company practices

Tension between HR professionals roles as change agentsand as administrative experts yields a number of paradoxes

that must be managed:

HR professional must balance the need for change,innovation, and transformation with the need for

continuity, discipline, and stability !


Change Agent vs. Administrative Expert



Change Agent versus Administrative Expert

SUPPORTING SLIDE


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HR for HR


Conclusion


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HR professionals work with line managers to institute & manage aprocess that creates an organization to meet business requirements

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Takeaway Box

! Avoid strategic plans on top shelf (SPOTS)

– Turn strategic statements into a set of

organizational actions! Create a balanced scorecard

–

Accountable for all segments of the BSC – Provide intellectual leadership on the

employee dimension

! Align HR plans to business plans – Integrate business practices into the

business strategy

! Watch out quick fixes

– Avoid the lure of the quick fix (two traps:

benchmarking and frou-frou)!

Create a capability focus within the firm – Identify and improve capabilities…

– …both to implement strategy and to

leverage new products

By overcoming those five challenges, HR professionalsbecome strategic partners!


Strategic Partner


HR professionals were given the task of answering thequestion: How do we create an organization to accomplish

business objectives?

Avoid strategic plans

on top shelf

Create a balanced

scorecard

Align HR plans

to business plans

Watch outquick fixes

Create a capability

focus within the firm

1 2

3

4

5


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Organizational diagnosis is the systematic assessment andalignment of organizational practices with business goals

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Strategic Partner

Organizational Diagnosis

Organizational diagnosis allowed HR professionals to audit organizations’ strengths and weaknesses and then to work to improveareas of weakness uncovered:

Better achievement of

strategic goals

Define an organizational

architecture

Organizational systemsand processes

Create an assessment

process

Provide leadership for

improvement of practices

Set priorities4

3

2

1


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Organizational architecture specifies the systems that constituteorganizations

17


Strategic Partner

Organizational Architecture Based on the work of Nadler, Galbraith, and McKinsey

The ability to design, integrate, and operate those systems is the essence of effective organizations:

Strategic Intent:

What Are We

Trying to Accomplish?

Shared mindset: the common identityand culture within a business

Governance: organization’s reportingrelationships, decision-making process,

policies, and communications processes

Consequence: performancemanagement standards

Leadership: how firms shape,communicate, and commit to direction

Competence: knowledge, skills, andabilities that exist among and across

employees and groups of employees

Work process/capacity for change:how organizations improve processes,

manage change, and learn

Define an organizational architecture1

SUPPORTING SLIDE


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Factors identified in the architecture become assessment withwhich to probe the organization’s strengths and weaknesses

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Takeaway Box

! Who will collect the organizational audit

data?

– Line managers, HR professionals, andthird party

!

Who will provide the data? – Employees, suppliers & customers, and

best practices of industry competitors

! What type of data will be collected? – May be both perceptual and evidential

! How will the data be turned into action?

–

As common themes are identified, …

– …as managers with decision-making

responsibility take ownership, …

–

… and as alternative actions areproposed


Strategic Partner

Assessment: Organizational-Capability Architecture

Create an assessment process 2

HR professionals are helping systematically to turn strategy into organizational action!

Factor QuestionRating

(1-10)Best Practice

Shared

Mindset

Competence

Consequence

Governance

Work Process/

Capacity for

Change

Leadership

!

Six Factors are listed in the firstcolumn...

! ...then stated as Questions in the

second column

–

posed to emphasize the extent to

which the factor will help accomplish

the firm’s strategic intent

! The Rating column employs a simple

metric for use in evaluation

! The Best Practice column identifies

practices for improvement

SUPPORTING SLIDE


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Improvement occurs when HR professionals generate alternativeactions and practices for each of the six organizational factors

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Strategic Partner

Architecture for Organization Capability: Best Practices

HR professionals should take the lead in proposing, creating, and debating best practices in culture change, competence,consequence, governance, work processes, and leadership:

Provide leadership in improvement practices 3

Strategic Intent:

What Are We Trying to Accomplish?

! Competence Pillar – Competence Audit

– Competence Enhancement:Staffing (Buy), Development

and Learning (Build)

! Governance Pillar – Organization Design

– Communication

– Engaging Employees

(participation, involvement,empowerment)

– Managing Policies (safety,

health, labor)

! Consequence PillarBuilding Performance

Management System – What are we trying to

accomplish? –

How should we measure it? – How can we tie rewards to

measures?

! Work-Process/Capacity-for-Change Pillar

– Reengineer Process – Manage Change

–

Increase Learning Capability

SUPPORTING SLIDE


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HR professionals should able to prioritize the HR practices underconsideration and to determine which they should invest in

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Strategic Partner

Setting Priorities for HR Initiatives

Set priorities4

HIGH

Takeaway Box

! The first criteria is impact , which combines

the following qualities:

– Alignment : the extent to which thepractices will accomplish strategy

–

Integration: the extent to which thepractices integrate and affect each other

– Customer focus: the extent to which the

practices influences external customers! The second criteria is implementability ,

which combines these qualities:

–

Resources: the extent to which resources

exist to accomplish a practice

– Time: the extent to which management

attention can be focus on the practice

LOW

IMPACTWill it add valueto customers?

Is it aligned with

strategy?Is it integrated

with other

initiatives?

DIFFICULT EASY

IMPLEMENTABILITY

Can it be accomplished within reasonable time frame?

Are resources available to do the work?

Setting priorities is focusing on the most important, of whatmay be many critical issues:

SUPPORTING SLIDE


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In the mid-1980s, the Engcon*) faced a major downturn, movingfrom > USD 250 million in profit to > USD 500 million in losses

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Takeaway Box

! BOD wanted to know whether the firm had

the right organization to implement and

sustain its strategy! Then the executive committee asked the

Senior VP of HR to determined thestrengths and weaknesses of the

organization

! He led this effort by creating an advisoryteam of senior managers, which in turn

created an assessment process using

inputs from employees, customers, and

suppliers

! The resulting recommendation were given

to the board, and organizational changeswere made and implemented

Strategic PartnerEXAMPLE

! BOD asked the CEO to assess the firm strategy,

especially its global focus and mix of products,

services and customers! BOD asked the CEO to determine whether the

firm had the right technology and system in placeto support and sustain its strategy

! Following the technology audit, systems were

upgraded

*) Engcon is a global engineering construction firm



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HR for HR


Conclusion


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HR professionals can add enormous value in reengineering eitherbusiness or HR processes

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Administrative Expert at Two Levels

Takeaway Box

! Two phases are common to any

reengineering effort

– Phase 1, improving processes –

Phase 2, rethinking value creation

!

Phase 1 focuses on identifying ineffective processes and…

! …devising alternative methods of delivering

services! Phase 2 goes beyond simplifying and

improving processes to…

! …rethinking the structures that enable work

to get done

! HR professionals should recognize and

respond appropriately to any reengineeringeffort

Reengineering of

business process

Apply expertise to

HR processes

As organizationsidentify and improve

core processes,HR professionals may

actively serve on theimprovement team

working toward greatersimplicity, efficiency,and effectiveness

HR professionalsshould demonstrate

their ability to deliverHR services

efficiently byreengineering their

own processes asneeded

HR professionals work as administrative experts at twolevels:


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Value creation goes beyond reengineering HR processes toreframing and rethinking the methods of accomplishing HR work

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Implement,

roll out,market

Measure

business impact Define the

target processes

Develop

“as is”models

Challenge

underlyingassumptions

Develop

“should be”models

Steps in HR reengineering

Takeaway Box

! Underlying all these efforts is a relatively

simple goal:

– Stopping some HR activities and… –

…simplifying others, most often through

investments in technology! Range of activities involved in HR process

reengineering

–

Among them streamlining, simplification,and redesign

! HR professionals participating in these

efforts apply principles of process

reengineering

! Various tools become foundation skills for

HR professionals working toward HRprocess reengineering

Phase 1 applies business reengineering principles toimproving HR processes:

Improving Processes 1

SUPPORTING SLIDE


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The dominant paradigm for organizing HR work has traditionallybeen centralization versus decentralization

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(De)Centralization Quandary

Takeaway Box

! The centralize/decentralize debate will

never be satisfactory resolved

– Because it asks the wrong question and…

–

…focus on what goes on inside thefunction…

– …more than who uses the services of the

function! The debate results in frequent changes in

allocation of authority

–

Employees become cynical about how

the HR work is really done

– The debate puts attention on power and

authority rather on service

Power generally concentrates either at corporate or in thefield unit:

Rethinking HR Value Creation – Framework 1: Avoid the (De)Centralization Quandary 2

HR professionals need to avoid the debate by rethinking andreframing the basis of their roles within a service entity!

HIGH

LOW

DEGREE OFINTEGRATION

(commonality,

similar focus)

LOW HIGHDEGREE OF

DIFFERENTIATION

(different foci)

Decentralized

HR Activities/

Field HR Units

Centralized

HR Activities/Corporate Focus

DEGREE OF AUTHORITY/

POWER

SUPPORTING SLIDE


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Value creation begins not with what happens inside a group, butwith what the group’s user or customers receives from it

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Delivery Mechanism for Creating Value

Takeaway Box

! Corporate: policy-level HR work, focused

on long-term strategic issues

! Business Unit : HR work that aligned withthe strategy of the particular business

!

Broker : HR work that could be outsourcedto a third party

! Service Center : Routine, standardized, and

administrative HR work! Centers of Expertise: HR work that required

technical depth and expertise and could be

contracted to the businesses

! Integrated Solutions: HR work that could be

woven together with from other groups and

delivered to businesses! Value creation occurs when the appropriate

mix of all delivery mechanisms is applied

Starting with “What value can my work create?” shifts focusfrom what is done to what is delivered:

Rethinking HR Value Creation – Framework 2: Define a value-creation framework 2

HR professionals must learn to create value, not as they perceive it, but as clients perceive it !

HIGH

LOW

DEGREE OFINTEGRATION

(commonality,

similar focus)

LOW HIGHDEGREE OF

DIFFERENTIATION

(different foci)

Business Unit

Focus

Corporate

Staff

Center of

Expertise

Integrated

Solutions

Service

Center

Broker of

Services

VALUE

CREATION

SUPPORTING SLIDE


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Focus of value-creation logic is horizontal not vertical, process notfunction, and teamwork not individual

27

Administrative ExpertRethinking HR Value Creation – Framework 3: Define a value-creation process 2


Shared SericesProcessCustomer Interface

Customer Requirements

Logic/Flow in a Shared Service Organization

Line

Manager

HR deliverableor guarantee

What does HR do for

the business?

These steps make evident the importance of the customer and demonstrate that resources need to flow from the shared serviceorganization to the customer:

Strategic Partner

(HR Generalists in

business units)

Account manager

How does HR interface with

the business?

Channels of Delivery

!

HR professionals! Outsourcing

! Line managers

! Information technology

How does HR get it works

done?

How does HR create shared

service to leverage work?

Service

Centers

Center of

Expertise

Policy and

AdministrativeExperts

Technical

Experts

! Involve the customer in defining

deliverables! Help the customer see the

importance of strategic HRM and

the role of HR strategy

! Select the right HR business

professional! Be skilled at organizational diagnosis

! Define and use multiple channels of

delivery

! Share information between customerand shared service and shared service

and customer

! Remove boundaries within the HR

function

! Clarify multiple roles within the sharedservice organization

! Co-locate members of the shared

service organization! Encourage and teach teamwork

! Get consolidated over as quickly aspossible

! Define measure of shared-service

success

K E Y S U

C C E S S

F A C T

O R S

SUPPORTING SLIDE


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Shared service organizations implementation must consider somepotential pitfalls and things to watch out for

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Power ShiftsPower shifts from the corporate office tothe field, and HR business professionals

gain influence in the organization

DepersonalizationIn lieu of seeing and knowing the HR professional who

serves, employees may find their needs are being met

through a combination of IT and telephone instructions

Shared Service Organizations

AccountabilityThe shared service organization has more,not less, accountability for HR professionals

working to deliver value to a business

Shared MindsetThe failure to achieve a sharedmindset across the organization’s

different functions and roles

Shadow StaffLine managers employ their ownadministrative assistants or turn to

external consultants


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J&J discovered that much of the SG&A*) costs could be traced tobureaucratic control, duplication, and inefficient HR processes

29

Takeaway Box

! They also worked to redefine the allocation

of HR professionals’ time

! Formerly HR professionals allocated theirtime to corporate or to business units

!

Under the new system they allocated theirtime to service-center and contracted

activities

! HR reengineering success at J&J weremeasured for both

– Efficiency (reduced costs, improved

productivity) and

– Service (improving customer perception

of HR services)

EXAMPLE Administrative Expert

*) SG&A stands for Sales, General, and Administrative


! J&J corporate executive created and

implemented the center of expertise concepts, inwhich HR technical resources within a businessunit were combined


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HR for HR


Conclusion


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Overwhelmedloss, failure

Underutilizedapathy, alienation

HR professionals play a critical role in developing the employee-firm relationship

31


Employee Champion

Why Some Adolescents Get Depressed

Takeaway Box

! HR professionals should find ways to

resolve the resource/demand imbalance

! When demands and resources areappropriately balance, employee are able

to contribute – They can commit themselves to

improvement and…

–

…can be competent enough to make theright improvements

! HR professionals should be the observers,

champions and sponsors of balanced

resources and demand

– For both themselves and for the clients

and employees they serve

Employees feel that the demands made on them exceed theresources made available to them:

HR professionals are business partners when they ensurethat employee contribution remains high!

HIGH

LOW

Perceived

Demands

(D)

LOW HIGHPerceived Resources

(R)

B

A

L

NC

E

A

Depression occurs when D>R or R>D


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The demand/resource and employee contribution challenge hasthree possible solutions

32


Employee Champion

Resolving the Demand/Resource Challenge

Reduce DemandsHelp employees find ways to do less and thus

remain in balance with their current resources

! Set priorities

! Focus

! Reengineer

Increase ResourcesHelp employees find new resources

that enable them to accomplish theirwork

!

Control! Commitment

! Challenging work

! Collaboration/teamwork

! Culture of fun in work setting

! Compensation: shared gains

! Communication : never too much

! Concern for individuals and due

process

! Computers and technology

! Competence: training anddevelopment

Turn Demands into ResourcesHelp employees learn to transform demands

into resources

! Exit interviews

! New manager assimilation

! Consider the impact of company policies onextended employee personal relationships

!

Involve employee in key decisions! Manage redeployment

3

2

1


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Boeing 777 air frame was created under exceptionally difficultdemands

33

Takeaway Box

! HR Leaders managed more than two

hundred employees in the team that

participated in the design, engineering,manufacture, and assembly of Boeing 777

!

In situations of high demand, whereanswers and solutions are not readily

available, the teams were used as

resources to more rapidly resolve issuesthan individuals.

! HR Leaders also facilitated regular meeting

for other leaders in order to share a clear

vision

! They passionately communicated the

agenda and intent to the teams

EXAMPLE

! It had to be completed (from design to delivery) in

less time than previous models had been

! It had to be produced at less cost and be fuelefficient beyond any aircraft

!

It had to be meet very high customer performancerequirements; and

! It had to please the pilots who would fly it


Employee Champion


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HR for HR

HR Business Partner ExampleWhat’s Next?

Conclusion


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The necessary range of a firm’s responses to change must expandas the pace of change outside a firm increases

35


Change Agent

General Responses to Change

Takeaway Box

! HR professionals make sure

– Initiatives are defined, developed, and

delivered in a timely manner –

Process are stopped, started, and

simplified – Fundamental values are debated and

appropriately adopted to changing

business condition! Intellectual commitment to change is easy

to make but…

! … practical efforts involved in change are

difficult

! Successful HR change agents

–

replace resistance with resolve,… – …planning with results, and…

– fear and change with excitement about

its possibilities

Three general response types may be identified:

HR professionals as change agents build a firm’s capacityto handle all three types of change!

Responses tochange

Initiative ChangesFocus on implementing new

programs, projects, or procedures

Process ChangesFocus on the ways

in which work getsdone

Cultural ChangesOccur within a firm when the

fundamental ways of doing

business are reconceptualized

3

2

1


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Understanding why changes fail may be a first step in overcomingfailure

36


Change Agent

Takeaway Box

! While many people and organizations

recognize the need for change…

! …few are able to sustain successfulchange efforts

!

HR professionals can be champions inmaking change happen

! For initiative and process changes

–

HR professionals can create a changemodel that…

– …can be applied to any change initiative

to reduce the time necessary for…

– …and increase the quality of the change

! For cultural change

–

HR professionals can create thearchitecture and actions that…

– …lead to new cultures

Top ten reasons why changes don’t produce change:

HR professionals must turn desire into competence byrecognizing the challenges and by building plans to

overcome those challenges!

Why Changes Don’t Produce Change

1. Not tied to strategy

2. Seen as a fad or quick fix

3. Short-term perspective

4.

Political realities undermine change5. Grandiose expectations vs. simple

successes

6. Inflexible change designs

7. Lack of leadership about change

8. Lack of measurable, tangible results

9. Afraid of the unknown

10. Unable to mobilize commitment to

sustain change


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Generally only about 25 percent of change initiatives are judged tobe successful

37


Change Agent

Steps in Building Capability for Change

Initiative/Process: Building Capacity for Change 1

Identify Key Success Factors

for Building Capability

for Change

Identify the Improvement

Activities for Each

Success Factor

See the Seven Key Factors as an Iterative Process,

Not an Event

Profile the Extent to Which

These Key Success Factors

Are Being Managed

! Leading change

! Creating a shared need

! Shaping a vision

! Mobilizing commitment

! Changing systems and

structures! Monitoring progress

! Making change last

Probabilities ofimplementing any

initiative improvedramatically when these

seven factors are

assessed, profiled, anddiscussed

! The seven key factors for change do notneed attention at one stage only

! Periodically revisiting the seven factors forchange keeps the change agenda moving

forward

After using the profilingexercise, identify

activities that will improveperformance on those

factors that received a

low rating

STEP 1

STEP 2

STEP 3

STEP 4

Following the four steps described above should result in a higher proportion of initiatives that not only happen, but happen fasterand more successfully !

SUPPORTING SLIDE


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Initiatives for change often evolve quickly to more fundamental,or transformational, change

38


Change Agent

Steps in Changing Mindset

Culture Change: Changing Mindset 2

! Shared mindsetrepresents the

automatic thoughtscommon among the

individuals within the

organization! To change a shared

mindset, executivesmust send new

information signals and/or change employeebehavior

STEP 1

STEP 2

STEP 3

STEP 4

HR professionals play a central and critical role in culture change. As they design and lead culture change, they help their firmachieve transformation!

Build an Action Plan that

Integrates Multiple

Approaches to Culture Change

Articulate Why Culture

Change is Central to

Business Success

Define and Clarify the Concept

of Culture Change

Define a Process for

Assessing Current,

Desired & Gap Between

Identify Alternative

Approaches to Creating

Culture Change

STEP 5

! Culture effects theperformance of a

business

! Old ways are not

new ways

If cultural alignmentbegins with

customers and thenshifts to how

employees should

perceive the firm,unity will follow

! Top-down,directive

! Side-to-side,process

reengineering

!

Bottom-up,empowerment

To build an action plan forimplementing culture

change, the seven criticalsuccess factors for change

should be considered

SUPPORTING SLIDE


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If HR professionals are going to be change agents, they need tomaster four agendas

39


Change Agent

Agendas to Become Change Agents

CHANGEAGENT

Catalyst/Champion/SponsorResponsible for

! Ensuring cultural change was partof every management discussion

! Models for cultural change were

created and implemented! Executive attention on culture

change remained high

FacilitatorFacilitate change all

through three stages:

! External support

!

Internal transition

! Managementownership

DesignerRedesign HR

systems to allowmanagers to

understand and ownthe culturaltransformation

DemonstratorDemonstrate the change within

HR professionals own function

12 3

4


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GE restructured the business mix, including both buying andselling businesses and significantly reducing the workforce

40

Takeaway Box

! Through town hall meeting, they work to

incorporate the values of speed, simplicity,

and self confidence into organization’sculture

!

HR professionals on the restructuringteams helped to determine the value of

assets and quality of management of the

business and to develop an integration orseparation process appropriate to each.

They become facilitators for and exemplars

of the new culture.

! As business process were improved, HR

professionals identified HR functions that

need to be modified to implement theimproved business processes.

EXAMPLE

! GE’s Management has focused on more

fundamental culture change

! They involved the employees in dismantlingbureaucracies, making faster decisions, moving

more quickly to serve customers and getting rid ofunnecessary work


Change Agent


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HR for HR

HR Business Partner ExampleWhat’s Next?

Conclusion


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Too often, human resource professionals are the cobbler’s unshodchildren; they fail to apply HR principles to themselves

42

Doing HR for HR

If HR professionals are to play the four roles described, theymust champion HR principles within their department:


Takeaway Box

! Strategic HR refers to the process of linking

HR practices to business strategy

– Strategic HR is owned, directed, andused by line managers to make HR

strategies happen! HR strategy refers to building an agenda

for the HR function

–

HR strategy creates a purpose and focusfor the HR function

! HR organization refers to the process of

diagnosing and improving an HR function

to deliver HR services

– It creates a process that ensures HR

strategies happen! Those three issues are related because all

focus on helping a business to be more

successful

The “Doing HR for HR” goal is to translate strategy intoresults and to build the HR functional capability to meet

business plan!

HR

Organization

Strategic

HR

HR

Strategy

21

3


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HR executives engage in doing strategic HR, turning businessstrategies into results through HR practices

43


Strategic HR: Turning Business Strategies into HR Priorities 1

An important step to be added to the traditional two-step, formulation-to-implementation process, is the “organizational capability” step!

! Strategy formulation serves threepurposes:

– Articulates a future direction for thebusiness

– Allocates resources –

Enunciates promises that reflectcommitments made through strategy

formulation discussions

! Through strategy formulation processes:

– Executives develop a vision of thefuture…

– …allocate resources to realize the

vision, and… – … make promises to stakeholders

about attaining it

! Firm’s organizational capabilitiesrepresent the process and practices

necessary to make a strategy happen

! Strategic HR connects business

strategies to HR actions by defining thecritical capabilities required

! Strategic HR planning must answered

these following questions:

– Business issues: What are the major

business issues we face? – Organizational capabilities: What are

the organizational capabilities required

to meet business goals? – HR practices: How do we leverage our

HR practices to create, reinforce, and

sustain theses needed capabilities?

! Implementation occurs whenorganizational practices are aligned with

the business strategy

! Too often, more strategies are formed

than are implemented –

Strategic plans are created, butimplementation fails to follow

Strategy ImplementationDefining CapabilitiesStrategy Formulation

Three Stages in Strategic Planning

SUPPORTING SLIDE


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HR strategy articulates a point of view for the HR function,defining how the work adds value to a business

44


HR Strategy: Shaping the HR Function 2

Issues for Building an HR Point of View

HR strategy shapes the HR function by defining the deliverables or outcomes that result from investing in it, justifying the resourcesit consumes, and helping to set its priorities:

Concept Definition Key Question Outcome

Vision Quick, energizing statement of why

function exists

What is HR trying to accomplish as a

function?

Tag line (e.g., “HR: part of the solution”; “HR:

dynamic business partner”)

Mission Statement of what HR does to add value

to the enterprise

What can HR do to add value for and

guarantee service to customers of the HRfunction?

Deliverables from HR (e.g., competitive advantage,

strategy execution, administrative efficiency,employee commitment, capacity for change)

Values Statement of what HR believes in as afunction

What does HR believe in as a function? Principles on which function is built(e.g.,integrity)

Stakeholders Statement of who HR serves Who are the major constituents served by

HR?

Clients and their expectations (e.g. managers,

employees, shareholders, customers)

Initiatives Statement of what programs and services

HR could offer

What practices or systems could HR

design and deliver to add value?

Organizational diagnosis (e.g., pillars, star

diagnostic framework)

Priorities (Goals/

Objectives)Statement of the top two to four prioritiesHR will sponsor and champion

What practices or systems should HRdesign and deliver to add value?

Organizational priorities for resource allocation

Actions Statement of an action plan for

implementation

What practices or systems will HR design

and deliver to add value?

Action plan

Measures Statement of what HR is accountable for What measures will HR use to indicate its

success?

Benchmarks and tracking indicators

SUPPORTING SLIDE


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As HR strategy sets the destination, an HR organization providesthe road map for getting there

45


HR Organization: Organization Diagnosis to Build HR Infrastructure 3

Organizational Diagnosis

An HR organization may be strengthened by following the organizational diagnostic process outlined in previous discussion forbecoming a strategic partner:

Better achievement of

strategic goals

Define an organizational

architecture

Organizational systemsand processes

Create an assessment

process

Provide leadership for

improvement of practices

Set priorities4

3

2

1

SUPPORTING SLIDE


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HR for HR

What’s Next?

HR Business Partner Example

Conclusion


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Thinking about the future of HR may help to change today’s HRpractices in positive ways

47

OrganizationalCapabilities

What’s So?

! HR matters – HR practices

createorganizationalcapabilities...

– ...that lead tocompetitiveness

So What?

! Both line managersand HR

professionals...

! ...must become HR

champions – They must master

the technique forcreating valuethrough HRpractices

Now What?

! Seven challengeswill propel the HR

community forward – HR Theory – HR Tools – HR Capabilities

–

HR ValueProposition – HR Governance – HR Careers – HR Competencies

HR Champions

HRCommunity

Highly CapableHR Community

Future of HR by Addressing Three Questions

The answer to these three questions should help predict what’s next in the development of HR issues and the HR profession:



48/59


Theory fulfils two purposes: it explains why things happen, and, itexplains when things happen

48

HR Theory 1

Why HR matters

When HR matters

! Theory provides

explanations based on

logic for how eventsrelate each other

! Theory weaves individual

events into predictableand generalizablepatterns

One reason HR has not become as pivotal as business as itshould be is that HR often lacks theory: Takeaway Box

! Managers and HR professionals must

master the theory behind HR work

– They need to be able to explainconceptually how and why HR practices

lead to their outcomes! Regardless of the preferred theory…

! …managers and HR professionals should

abstract from it a higher level of reasoningfor their day-to-day work and..

! …thus better explain why their work

accomplishes its goals

! Contingent thinking focuses not only on the

practices (the then of if…then proposition)

…! …but on the setting that facilitates the

practice (the if )Reliance on theories creates thoughtful practitioners withsolid grounding in the basics of HR practices!

Challenge #1: HR Theory

! Theory lead tocontingent thinking

! Contingent thinking is

based on a series ofif...then equations

! “Why did this HR

practice work?”



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In developing the HR practices needed for the future,improvement must continue in many of the HR core technologies

49

LeadershipDepth

KnowledgeTransfer

CultureChange

Customer Focus HR

New

Issues

Global HR

New issues in developing the HR practices, represented by the five HR tools discusses below, will present HR professionals withcorresponding new questions:

HR Tools 2

Challenge #2: HR Tools

! HR professionals need to articulate the HRramifications of a global business strategy

! HR professionals should be aware of and

sensitive to unique country conditions

! Defining and creating the leader of thefuture will be a major challenge for the

HR professional

! HR professionals must establish

systems that create or discover future

leader


! HR professionals work with information-systems professionals to createcomputer networks that share information

! They also create a mindset among all employees that value new ideas

and innovation and devalues game-playing

! Culture change deals with information-sharing, treatment of employees, work

allocation, and decision making

! HR professionals must learn to engage

the organization in a series of actions

! HR practices need to focus both onemployees and on external customers

! When employee-focused HR practices shift

to customer-focused HR practices,employees and customers both win


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HR communities must also exhibit capabilities, processes, andpractices that serve as criteria for evaluating their success

50

HR Capabilities 3

Today, new HR capabilities must be added to the traditionalones, including the following: Takeaway Box

! Speed : How quickly can HR work be done

without sacrificing quality?

! Implementation: How well can new ideasbe turned into actions with visible results in

terms of employee behavior or benefits tothe firm?

! Innovation: How able is the HR community

to think creatively about solving oldproblems and about finding solutions to

problems it has not previously considered?

! Integration: How well does HR work

integrate with strategic plans, customer

goals, employee needs, and other stafffunction plans?Delivering these outcomes will require that HR communities

build new capabilities!

Challenge #3: HR Capabilities


Speed

Implementation

IntegrationInnovation


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HR investment in the future must focus on value creation and ondeveloping a value equation for HR services and products

51

HR Value Proposition 4

Simple questions are aimed at making explicit therelationships between HR practices and the three locales of

value:

HR professionals must create an HR value proposition,aligning HR practices to simple business realities!

Challenge #4: HR Value Proposition


Takeaway Box

! HR professionals should invest serious

time in learning how their work affects

business realities! They should be able to pass this one-

question exam: “How does your work addvalue to this business in economic terms?”

! Organizational capabilities, the enduring

attributes characterizing an organization...! ...create value for the customers served by

them

! When customer value is created, economic

value follows

! HR value proposition is that HR practices

create organizational capabilities...! ...that create customer value...

! ...that in turn creates economic value

! How does HR affectmorale, commitment,

competence, and

retention?

Employees

Customers ! How does HR affectretention, satisfaction,

and commitment?

Investors ! How does HR affectprofitability, cost,

growth, cash flow, andmargin?

HR

Practices


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Governance deals with how work is coordinated, where in thefuture governance may take many forms

52

HR Governance 5

Governance applies within the HR community:

HR community will become a virtual organization in whichwork occurs to set policies and administer HR practices!

Challenge #5: HR Governance


Takeaway Box

! Question relating to such a transition:

– How does HR organize to delivery value

– Who does HR work? –

Where is accountability for HR work?

–

How is the structure of the firm’s HRcommunity established?

! Firms create HR functions with a

dramatically different look – Function might become very small and

serve as a broker of service

–

It may split into distinct roles (CoE,

generalists, service centers) that work

with each other to create value

–

Third possibility would be an HR functionhoused under one strong central body…

– …but with responsibility for ensuring

company responsiveness to local needs

Pyramids Networks/Clusters


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A more apt metaphor for careers in HR in the future may be thecareer as a mosaic

53

HR Career 6

A career mosaic may be characterized in terms of threedimensions: Takeaway Box

! HR professionals may work in:

– At a site (e.g. plant)

– A business unit (e.g. product line) –

At corporate HR

–

Outside the HR function! HR professionals may be:

– A specialist (focusing on a specific HR

practice) – A generalist (integrating HR with other

work)

! Particular positions may have one of three

career aspects:

– Contributor (working alone)

–

Integrator (coordinating the work ofothers)

– Strategist (directing policies and

procedures)

Multiple career paths exist, many jobs within the HRcommunity are important, and individual competencies are

more important than career stages!

Challenge #6: HR Career


BUSINESSSITE

CORPORATEOUTSIDE HR

Generalist

Specialist

Generalist

Specialist

Generalist

Specialist

SpecialistGeneralist

Strategist

Integrator

Contributor


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Competencies in each HR competencies domain contribute indifferent ways to the overall performance of HR professionals

54

HR Competencies 7

HR competence can be conceptualized using a three-domain framework: Takeaway Box

! Knowing the business lets an HR

professional join the management team;

! Knowing HR practices helps theprofessionals contribute; and

!

Managing change helps the HRprofessionals make things happen\

! The behavior that enhance credibility

include: – Accuracy

– Consistency

–

Meeting commitments

– Chemistry

– Confronting appropriately

–

Integrity – Thinking outside the box

– ConfidentialityBeyond the three domains outlined above, however, is adomain of final necessary competency for the successful HR

professional: Credibility !

Challenge #7: HR Competencies


BusinessMastery

(18.8%)

PersonalCredibility

HR Mastery(23.3%)

Change +Process

Mastery(41.2%)


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HR for HR

What’s Next?


Conclusion


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BUSINESS PARTNER

Business partners exist in all four roles defined in the multiple-role model, not just in the strategic role

56

Business Partners Play Multiple Roles= Strategic Partner + Administrative Expert + Employee Champion + Change Agent


FUTURE/STRATEGIC

FOCUS


FOCUS

PEOPLEPROCESSES



Align HR systems with

business strategy and set HR

priorities for a business entity

Save business money through

more efficient design and

delivery of HR systems

Help business through

transformations and to adapt to

changing business conditions

Ensure employee contributions

to the business remain high

(commitment & competence)


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HR for HR

What’s Next?


Conclusion


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Ultimately, a firm’s human-resource community holds crucialresponsibility for adding value and delivering results (1/2)

5858

! To function as a strategic partners, HR professionals must fulfill the following tasks.

–

They must establish an organizational architecture and be able to use it to translate strategy into action

– They must learn to perform effective organizational diagnosis by asking good questions and generatingcreative and apt alternative practices

– They must be able to set priorities for initiatives and then to follow through on them

! HR professionals, to become administrative experts, must learn how to:

–

Reengineer HR work through use of technology, process reengineering teams, and quality improvements – Define the HR role in creating value for the firm

– Create a shared services HR delivery mechanism

– Measure HR results in terms of efficiency (cost) and effectiveness (quality)

! To become an employee champion, HR professionals must demonstrate to employees the confidence and

trust of ministers, the sensitivity of psychologists, the creativity of artists, and the discipline of pilots.

! In working to build employee contribution, HR professionals work with managers and employees to ensurethat employees can meet their expectations.


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Ultimately, a firm’s human-resource community holds crucialresponsibility for adding value and delivering results (2/2)

5959

!

HR professionals complement the line managers’ work by undertaking the following tasks:

–

Being the employees’ voice in management discussions

– Assuring employees that their concerns are being heard

– Defining and providing resources that help employees meet the demands made on them

! HR professionals play a critical role as change agents when they perform the following functions:

– Being the employees’ voice in management discussions

–

Assuring employees that their concerns are being heard

– Defining and providing resources that help employees meet the demands made on them

! HR for HR requires that HR professionals manage the following three sets of activities:

– The professionals must do strategic HR, turning business strategies into organizational capabilities andorganizational capabilities into actions

– HR professionals must do HR strategy, crafting a point of view for the HR function

– HR professionals must do HR organization, using HR strategy to strengthen the function

Documents

20110308_HR Champions Prex Materials