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HR Driving Operations Strategy
Steve Geiger, Cameron
19 April 2016
Overcoming HR’s Reputation
Why We Hate HR
“After close to 20 years of hopeful rhetoric about
becoming strategic partners with a seat at the table
where the business decisions that matter are
made, most human resources professionals aren’t
nearly there. They have no seat, and the table is
locked inside a conference room to which they
have no key. HR people are, for most practical
purposes, neither strategic nor leaders.”
-2005 Fast Company article
Human Resources:
Strategic Partner or Paper-
Pusher?
“ORGANIZATIONS OFTEN CLAIM THAT:
‘People are our greatest asset’…
• But do they understand how HR influences
company performance?
• Do HR people feel like they play an important
role in implementing the organization’s
strategy?
• Does HR really matter?
-Juan I. Sanchez, Ph.D.
Department of Management & Int’l Business
Florida International University
2007
Moving from Cost Center to
Strategic Business Partner
Becoming Strategic… • Start Testing the Roots of Your
Vulnerability.
• Challenge Your Creativity.
• Seize the Opportunity: Take Control &
Act Now!
• Think Like a Business Person First.
• Perfect Market Conditions for New
Ideas.
Clint Tripodi
The Pendolini Group
April 2014
2
3
HR as a Strategic Business Partner
Business Relationships Business Relevance
HR Leadership Mindset
and Capability HR Change Management
▼ ▼ ▼ ▼ Does your HR team have
strong relationships with
the CEO and the
Company’s top leaders?
Does your HR team have
a deep understanding of
the Company strategy and
the role they play in
helping the organization
achieve its goals?
Do your HR leaders have
the business acumen and
leadership skills to be the
trusted advisors your
executive team needs?
Is your HR organization
ready to reposition itself as
strategic business
partners?
A Look Back: Cameron International 2011
Revenue: $6.9 Billion
Headcount: 22,500
Five Divisions:
Drilling Systems
Surface Systems
Subsea Systems
Valves & Measurement
Process & Compression Systems
2011 Executive Strategy Meeting
Strategic Direction:
• Customer & Service Excellence
• Significant 2012 Profit Objectives
• Shared Service Model
Consensus:
Missing the glue to successfully
achieve these objectives.
Barrier to HR as a Strategic Partner:
CEO Trust
Root Cause of this Barrier:
Leadership Mindset & Capability
4
2012 Launch of One Cameron: The Glue
5
2012 Launch of One Cameron: The Glue
2011 Annual Report
6
©1994-2016 Senn-Delaney Leadership Consulting Group, LLC. All rights reserved. 7
Barrier #2: Culture =
Executive Alignment
Root Cause Barrier:
Leadership mindset
jaws of culture
low results
few out
many in
cultural barriers
initiatives
One Cameron
Customer experience
Quality
Aftermarket
Enterprise excellence
OPTIMUS
turf issues
resistance to change
hierarchy
bureaucracy
blaming and excuses
lack of:
bias for action
trust
openness
teamwork
“can-do” attitude
customer focus
2012: Ability vs. Willingness
Launch of Cameron Strategy Map
2013 STRATEGIES
• No one gets hurt,
Nothing gets
harmed
• Promote a healthy,
high performance
culture:
Accountable,
Empowered,
Informed
• Select, train,
develop and
recognize qualified
& engaged
employees
People Process & Technology
Customer Finance
• Acquire and retain
best customers
• Deliver on our
customer
commitments
• Build trust-based
relationships through
service excellence
• Grow enterprise value
• Grow revenue faster
than the market
• Grow EBITDA faster
than revenue
• Continuously improve
Working Capital
• Grow return on
invested capital
• Grow EPS
A PEOPLE STRATEGY
We create the flow control technology that energizes the world 8
2013: HR Implementing the ONE CAMERON Strategy
Managing HR as a Business:
Barriers to Success
Barrier #3: HR Mindset
Barrier #4: HR
Misalignment
Barrier #5: HR Systems &
Resources
9
HR Strategy Map
We create the flow control technology that energizes the world
CAMERON STRATEGY MAP
2014 CAMERON HR STRATEGIC INITIATIVES & FOUNDATIONAL OPERATIONS
People Process & Technology
Customer Finance
• Employee Engagement
• Talent Readiness: Hire to
Retire o Executive Talent o Plant managers o Engineers o Field service o Project managers
• Global Recruiting
optimization
• Employee
Communications
• GRDP and University
Relations
• Training optimization oLearning Management
System (LMS)
• HR Optimus value
realization
• Recruiting Effectiveness
& Efficiency
• Payroll oOptimus, SAP oMaster data
management
• Benefits Process &
Technology oUS Healthcare trend oBusiness Solver,
Healthy Roads
• Mobility effectiveness
• HR Compliance
• HR Customer Satisfaction o Business leaders o Employees o Candidates
• Recognized value
HR Value to Cameron and One
Subsea:
We deliver the right people in
the right jobs at the right time to
meet the business’ needs. We
develop, deploy and manage the
highly effective and cost-efficient
HR processes and systems
required to create, reinforce and
sustain a qualified and engaged
workforce. We support Cameron
and One Subsea in being
increasingly profitable.
10
To the Cameron Board of Directors
#1 HR Barrier to Company’s Success:
2013: HR Implementing the ONE CAMERON Strategy
Barrier #1: Leadership Bench
Strength Root Cause:
Leadership Development
11
Finance
(Internal Selection)
June 2014 -
August 2015
CIO
(Internal Selection)
August 2014
T100
(Development)
October 2014 – August
2015
President
(Development)
December 2014 -
Present
CEO
(Development)
January 2015
CIO
(External Selection)
February 2015
Leadership Assessment Timeline
12
2014: Measurement & Recognition
Measurement: HR engagement with top 75+ KPIs
HR strategy and objectives aligned to Cameron’s
Established goals; ongoing measurement & assessment
Significant positive correlation with TRIR, DAFW, OTD, Customer
Satisfaction, margin improvement
Board and President Support
HR alignment to Company strategy and objectives
Measurable HR goals and objectives drove executive-level support
HR earned “seat at the table”
13
Key Takeaways
Business Relationships Business Relevance
HR Leadership Mindset
and Capability HR Change Management
▼ ▼ ▼ ▼ Earn the trust of executive
leadership through
measurable results in key
areas that align to business
objectives.
Align HR goals and
objectives with company
strategy.
Ensure HR leadership has
business acumen needed
to align strategy
development and
execution to company
objectives.
Drive positive
transformation of HR
organization from
administrative focus to
strategic business partner.
14