AGILITY @ HR EXCELLENCE – ART – LEADERSHIP

Dirk Stoltenberg, Global HRM // HR Tech Europe 2014

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ALMOST 20YRS OF SHARED SERVICES...

...acknowledge for: • More efficiency and reduced cost

– Sure!

• Improved Customer Service – Maybe.

• Fewer administrative burden – For whom?

Poorly defined and non-standardized processes reduce operational efficiencies and cost-savings.

Processes

1%

32%

0%

20%

40%

Non-standardized processes

Standardized processes across

all locations

Impact of Process Standardization on Cost-Savings

Net

Cos

t-Sa

ving

s

Source: Shared Services Roundtable

People High turnover and dis-engagement of staff reduce productivity, negatively impact customer service, and increase hiring costs.

Annual Turnover Rates

Med

ian

Turn

over

Rat

e 15.2%

9.9%

0%

10%

20%

Shared Services Employees

All Corporate Employees

Source: CLC Human Resources

35%

18% 14% 13%

0%

20%

40%

Non-integrated technology and data sets can reduce HR shared services center quality and efficiency.

Technology

Top HR Service Delivery Issues

Perc

enta

ge o

f Org

aniza

tions

Streamlining Processes & Systems

Upgrading HR Systems

Data Accuracy

Integrating Systems

Source: Towers Watson

Changing nature of work

Changing needs of internal clients

Changing nature of the consumer

Changing nature of B2B customers

Changing impact of information

BUSINESS TRENDS 2015+

STRATEGIZE DYNAMICALLY

PERCEIVE CHANGE

TEST & EXPERIMENT

IMPLEMENT THE CHANGE

BE AGILE:

Distinct but complementary capability

Strategize dynamically Shared purpose

Purpose other than profit & growth and business model are known. Values embedded drive behavior on a daily basis

Change-friendly identity

Sense of „who we are“ and „What inspires us“. Strategy encourages the organization to change

Robust strategic intend

Current strategy is relevant in and concruent to the actual market conditions. Held flexible enough to change on short notice

ROUTINES OF AGILITY (1)

Perceive change Sensing People are keen to explore the

future deeply. Many people maintain continuous contact with parts of the business environment

Communicating Unfiltered information from the environment goes rapidly to decision makers. Communication goes seamless between top down & bottom up.

Interpreting Information gets evaluated against firm‘s identity, intent, business model, and risk tolerance

Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company

Distinct but complementary capability

Test & experiment Slack in resources Capable resources (people,

money, time, tools) are available and can be readily deployed to experiment with new ideas

Risk Management Experiments are bounded by agree-upon criteria for judging success and failure. The possibility of failure is accepted, as a vehicle for learning

Learning Experience with running experiments is captured and applied with each „new round“, so that the company‘s capabilities are continuously improved

ROUTINES OF AGILITY (2)

Implement the change Management and organizational autonomy

Executives delegate sufficient authority to line and business managers o that the company can execute changes with success. There‘s no second guessing from headquarters but alignment with basic strategic objectives

Embedded change capability

The pragmatic ability to change collective habits, practices, and perspectives is embedded in line operations, not isolated in staff groups

Performance management

Clear, unambiguous, accepted performance measures and targets are based on business model drivers with rewards that matters

Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company

Companies scoring high in agility related routines have higher levels of Return On Assets

Source: Center of Effective Organizations, University of Southern California

https://www.youtube.com/watch?v=yFzYqEiV5lI

Reaction (reflection) leadtime upon customer feedback Customer focus incentives Mistakes handling culture Experimential habit Test result communication Investment in learning &

continuous improvement Organizational slack Amount of intuition relevant

in investment decisions .....

Execution & budget decision authority Unambiguous goal setting Transparent business

performance benchmark Real & transparent

consequence management Transparent incentive

schemes Value based engagement

model .....

ASSESS YOUR OWN AGILITY AGAINST...

Agile organizations need agile people....so, answer yourself this questions:

How agile are you? Are you changing before you have to?

© ABB Group October 24, 2014 | Slide