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Living Your Mission, Vision and Values
HR’s Role in Strategy Execution
Michael Couch, SPHR, HCS President, Michael Couch and Associates Inc.
2016
Strategy
People
Processes
Building a Strategy Capable
Organization
Living Your Mission, Vision & Values
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 2
Strategy
People
Processes
Strategy Deployment
Strategic Talent Management
Organization Capability
HR’s Role In Strategy Execution
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 3
Strategy Execution Quiz
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 4
Your Strategy Challenges ?
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 5
Strategy
People
Processes
Living Your Mission,
Vision and Values
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 6
Strategy Defined
A framework which guides the choices that determine the nature and direction
of an organization
How Value will be
created
What to Do & Not
to Do
Meaningful Results
Effective Behavior
7
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Organization Capability
Business Strategy
Organization Demand
Strategic Talent Management
Assuring that talent makes a difference in executing strategy
Strategy-Driven Organization DevelopmentSM
8
Business Strategy
Talent Management
Put Strategy First, Not People
Be a Business Advocate First,
A People Advocate Second
9
Strategy
People
Processes
Living Your Mission,
Vision and Values
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 10
Creating Customer Value
Value
Mar
ke
t S
har
e/R
eve
nu
e G
row
th
Value Touch Points
Brand/Image
Price Fairness
From Reg Goeke Market Value Solutions www.marketvaluesolutions.com The Institute for the Study of Business Markets Penn State University
11
Creating Value
Value
Mar
ke
t S
har
e/R
eve
nu
e G
row
th
Value Touch Points
Brand/Image
Price Fairness
Dealer Service
Machine Operation
Machine Productivity
User Training
Order & Delivery
Machine Reliability
.23
.19
.15
.15
.08
.07
.62
.10
.28
Agricultural Tractors
From Reg Goeke, Market Value Solutions
Mission-Critical Processes
12
Return on Improved Performance (ROIP) ala John Boudreau*
Performance
Str
ate
gic
Val
ue
Dealer Service
Order & Delivery
Improved performance is not equally valuable in
all roles
*Retooling HR, 2010
13
One top-notch engineer is worth "300 times or more than the average”
Robert Eustace Senior Vice President of Knowledge at Google Wall Street Journal 2005
14
Mission Critical
Processes & Roles
Talent Capability
Invest to Create and Drive Value © Michael Couch & Associates Inc. 2010 All Rights Reserved. 15
Strategy
People
Processes
Living Your Mission,
Vision and Values
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 16
Strategy
People
Processes
Strategy Deployment
Strategic Talent Management
Organization Capability
HR’s Role
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
StratCo
Strategy Realization
Cascading Strategy from Vision to Performance
“Companies that more closely aligned goals across their
organization enjoyed much higher levels of financial success”
How Smart HCM Drives Financial Performance Workforce Intelligence Institute & Success Factors, 2006
Aligning the organization with the strategy by cascading goals and objectives down through the organization
2016 Strategic Talent Management Survey Sponsored by the PHRA and Pittsburgh Technology Council
* Based on Profitability and Customer Service/Retention
*
Strategy Deployment X Matrix
Breakthrough Objectives
Value Drivers
Annual Improvement
Priorities
Key Initiatives and Owners
Str
ate
gy
De
plo
yme
nt
X M
atri
x
Value Driver
Annual Improvement Priority
Ke
y In
itia
tive
Value Driver
Bre
akth
rou
gh
Ob
ject
ive
Bre
akth
rou
gh
Ob
ject
ive
Annual Improvement Priority
Ke
y In
itia
tive
Ow
ne
r
Ow
ne
r
Str
ate
gy
De
plo
yme
nt
X M
atri
x
Order to Delivery Lead Time
Lead Time reduction of 10% on top 5 products
Ke
y In
itia
tive
Value Driver
Bre
akth
rou
gh
Ob
ject
ive
Re
du
ce L
ead
Tim
e b
y 10
%
Annual Improvement Priority
Val
ue
Str
eam
Map
to
p 5
pro
cess
Ow
ne
r
Jim
Cascading Plan Action Performance
Project Plans • Objectives • Owner • Expected Results • Due dates
Annual Performance ObjectivesEmployee: Jim
Objective Expected Result Due Date1 - Identify top 10 products to be mapped Top 10 identified and communicated 01/31/14
2 - Assign leaders to each product to be mapped Leaders aware of their products 02/03/14
8a - VSM kaizen for product E Mapped and on the wall 08/16/13
8b - Complete actions to achieve 8% reduction in overall leadtime Validated results 12/12/14
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 25
Deployment Plan
Employee Performance Plan
What’s Up, Jim?
“Our team is reducing order to delivery lead time on our
top 5 products by 10% this year and by 25% in 3 to 5 years.
Its one of our four Breakthrough Objectives.”
Its Time to Ditch Conventional Performance Reviews
Managers dissatisfied with PM systems 95%
90% HR heads believe they do not yield accurate information
“If you want a high-performance organization, you have to
reverse the destructive effects of conventional Performance
Management.”
“PM systems that attempt to serve too many purposes tend
not to do any of them very well.”
Rethinking Conventional PM
Align every employee to the
strategy
• Aligned goals
• Ongoing feedback and coaching
• No Ratings
IMPACT
Better match the nature of work today
Improved collaboration
Attract & retain talent
Develop people faster
Impact on Employee Performance
© Michael Couch & Associates Inc. 2010 All Rights Reserved. 31
Source: CEB Corporate Leadership Council (2004)
Feedback Rich Environment
32
Ongoing feedback,
planning and
development
Set
Goals
Review
Performance
Typical
Conversations
Improved
Conversations
Its All About the Conversation
What would it look like if the quality of your conversations was . . .
• More future-focused
• More engaging
• More of a dialogue about progress, plans and support
Aligning Goals in Real-Time
33
Strategy
People
Processes
Strategy Deployment
Strategic Talent Management
Organization Capability
HR’s Role
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Organization Capability
Business Strategy
Organization Demand
Strategic Talent Management
Strategic Talent Management
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Assuring that talent makes a difference in executing strategy
Different strategies require organizations
with different capabilities
Strategy Drives Capabilities and Talent
37
Strategy
Organizational Capabilities
Leadership Competencies
Aligning Talent to Strategy
Organization Demand
• Execution and Decision Making
• Innovation Leadership
• Customer Focus
• Upgrading the Workforce
• Focus on Core Capabilities
• Building Competitive Advantage
• Engaging Employees
• Mature Market
• Slow Execution
• Standard Offerings
• Declining Retained Earnings
• Little Competition
• Silo’d Units
• Accepted High Turnover
Past Capability Future Capability
Strategic Effectiveness Architect®
Regional Human Services Non-Profit
39
Mission Critical Competencies
• Execution and Decision Making
• Innovation Leadership
• Focusing on Customers
• Upgrading Workforce
• Focusing on Core Capabilities
• Building Competitive Advantage
• Engaging Employees
• Innovation Management
• Strategic Agility
• Business Acumen
• Perspective
• Managing through Systems
• Managing and Measuring Work
• Timely Decision Making
• Organization Agility
• Drive for Results
• Motivating Others
• Managing Vision and Purpose
Bu
sin
ess
Str
ate
gy
Key Organization Capability Critical Leadership Competencies
Strategic Effectiveness Architect® Leadership Architect®
What are Competencies?
Measurable characteristics of a
person related to success at work
• Observable behaviors
• Varying Developmental Difficulty
• Performance and Potential
Competencies allow organizations to . . .
If you don’t get the competencies right, the rest doesn’t matter
Consistent application of competencies improves talent decisions
Align talent with strategy
Integrate talent
processes
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Aligned Talent Management
Competencies
Competencies: The compass that keeps the strategy on track
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Organization Capability
Business Strategy
Organization Demand
Strategic Talent Management
Integrated Talent Management
Competency Models
Acquire
Develop
Promote
Assess, Plan & Deploy
Business Strategy
Consistent application of competencies improves talent
decisions
2016 Strategic Talent Management Survey Sponsored by the PHRA and Pittsburgh Technology Council
Building Competencies
• Don’t start from scratch
• Focus on the future
• Model High-Potential, High-Performers
• Model roles NOT departments and titles
• Validate against the strategy
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Strategy
People
Processes
Strategy Deployment
Strategic Talent Management
Organization Capability
HR’s Role
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Talent Assessment
• Robust Talent Reviews
• Honest and open conversations
about performance and potential
• Assess talent capabilities and gaps Hewitt Associates, Talent Management Magazine
What’s the best tool to assess the overall capability of an organization’s
talent?
Talent Assessment Keys to Success
48
• Trained facilitator
• Objective, candid discussions
• Multiple assessment sources
• Not just HR or Manager
• Focus on behaviors and impacts
• Targeted Action and Development Planning
• Integrate Follow-Up in regular business discussions
Capability Assessment
Talent Reviews
Organization Capability Assessment
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Ag
ile
Exp
an
dab
le
At
Po
ten
tial
Less Effective Solid Exceptional
Performance Effectiveness
Gro
wth
Po
ten
tial
High Potential
Emerging Leader
Adaptable Performer
Adaptable Contributor
High Professional
Performer
Diamond in the Rough
Questionable Fit
Marginal
Organization Capability Assessment
Capability Builders
Capability Foundation
Capability Limiters
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Ag
ile
$168,800 $616,230 E
xp
and
able
$132,000 $975,480 $271,930
At
Po
ten
tial
$405,390 $151,170
Less Effective Solid Exceptional
Performance Effectiveness
Gro
wth
Po
ten
tial
Is This A Strategy-Capable Organization?
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
© Michael Couch & Associates Inc. 2010 All Rights Reserved. www.mcassociatesinc.com
52
Building Organization Capability
Action Planning to build Organization Capability and Readiness with Accountability, Resources and Time Frames
Org
aniz
atio
n D
eve
lop
me
nt
Act
ion
Pla
ns
Building A Strategy-Capable Organization
1. Remove marginal leaders in mission-critical roles
2. Create strategy-driven Competency Models
3. Build Leadership Capability at all levels
• Accelerate the intentional development of new leaders
• Plan the intentional development of future leaders
4. Build competency-based selection and promotion
Regional Human Services
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
Developing Capability Pays Off
High Performing Organizations* are:
3.5x More effective at
Succession Management
3x More effective at
Leadership Development
* In Revenue Growth, Market Share, Profitability and Customer Satisfaction
But . . . .
Evolution of Development
Past Learning Today’s Learning
• Classroom
• Individual
• One Shot
• Hit or Miss
• Blended Learning
• Action-based
• Support from others
• Continuous
Intentional Development
57
People Asset Review
Growth Strategy Customer, Brand and
People
Critical Capabilities
Capability Action Teams
Strategy
People
Processes
HR’s Role In Strategy Execution
• Link talent strategy to business strategy
• Translate strategy into goals
• Focus on mission-critical processes and roles
• Identify strategic competencies
• Assess and improve organization capability
© Michael Couch & Associates Inc. 2010 All Rights Reserved.
• Top 10 Signs that You Are NOT Taking a Strategic Approach to Talent
• Building a Robust Succession Management Process
• Assessing Your Organization's Talent
• Talent Management Derailers: Keys to keeping your talent train on the track
• The Elegance of Competencies
• Leadership Development Redefined
• Leveraging Culture to Impact Business Results
Sign up for my newsletter: Competing Through People
www.mcassociatesinc.com Free Whitepapers
© Michael Couch & Associates Inc. 2010 All Rights Reserved.