Post on 25-Jan-2017
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Driving Human Capital Strategy with the HRBP
prepared for i4cp Exchange
August 2015
Michael S. Foss
Amway | Alticor Inc.
Global Human Capital Strategy & Planning
Practice Leader
michael.foss@amway.com
https://www.linkedin.com/in/michaelfoss713
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For more than 50 years, Amway has been a family-owned company based on the belief that we can help people live better lives
Amway is the #1 direct selling company in the world, operating a business model where independent entrepreneurs sell
products directly to consumers.
MORE THAN $47
BILLION USD PAID IN
COMPENSATION AND
BONUSES TO AMWAY
BUSINESS OWNERS
82% OF THE WORLD
HAS ACCESS TO AMWAY;
100+ COUNTRIES
AMWAY
MANUFACTURES AND
DISTRIBUTES HEALTH,
BEAUTY, & HOMECARE
PRODUCTS GLOBALLY
Subset of Alticor’s family of brands offered through Amway and its subsidiaries
Revenue:
$11B USD
Employees:
21,000 globally
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Human capital strategy is the discipline of integrating human capital into business planning
Includes:
ORGANIZATIONAL EFFECTIVENESS – aligning organizational components (e.g., goals &
measures, processes, governance, design) to business strategy execution
WORKFORCE PLANNING – aligning talent management activities in order to have the right
people, in the right place, at the right time, for the right price
HUMAN CAPITAL ANALYTICS – translating information into action – using data, metrics, reports,
and/or quantitative and qualitative analyses in strategy design and delivery
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Approaching human capital strategy consistently allows for scalable impact with the business and within HR
Business Strategy HR Strategy
Op
po
rtu
nit
y
Directly contribute to business strategy execution
through organizational effectiveness and workforce
planning activities
Near-term: Support the business areas in
efficiently managing their operating expenditures
and resources
Long-range: Create a high-performing
organizational environment and a
sustainable pipeline of talent
Prioritize and rationalize HR investment related to
business objectives
Near-term: Prioritize and coordinate HR service
to fit business needs (use what exists)
Long-range: Drive business context into HR
program and strategy design (evolve HR service
delivery)
Ap
pro
ac
h
Develop HR Business
Partner capabilities in
advising business leaders
on human capital strategy
and impact
Utilize human capital
strategy methods and tools
Perform self-diagnostic on HR
program and process
effectiveness
Integrate outputs from human
capital strategy design with the
business areas into HR
strategy planning
Two Applications
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Succeeding with human capital strategy requires distinct roles and responsibilities
Human Capital Methodology & Tools Team (Specialist team)
designs approach, methodologies, and tools for consistency in human capital strategy
HR Business Partner
configures and utilizes methodologies and tools to support the business areas served
Business Leader
apply the human capital strategy into the business plan
The HRBP is key to success when integrating human capital strategy into the business areas … business leaders
do not know what they do not know, and a SME team cannot be deep enough in each business area
Hu
ma
n C
ap
ita
l S
tra
tegy e
xp
ert
ise
Bu
sin
ess A
rea
exp
ert
ise
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Path toward building organizational capability in human capital strategy
PUSH PULL
Specialist team
delivers projects with
the business area
− Low scale
− Low capability
building
− Low ability to
follow through on
execution
Specialist team
partners with HRBP to
deliver projects with
the business area
− Low scale
− High capability
building
− High ability to
follow through on
execution
HRBP utilizes
human capital
methods & tools in
business planning
Specialist team
focuses on broad-
enterprise
initiatives and
conducts analytics
to help identify
opportunities
Business areas
understand the
value of human
capital strategy and
request work to
integrate within
their planning
− High scale
− High capability
building
− High ability to
follow through on
execution
Develop HRBP
capabilities and
competencies
along this
curve
* “Specialist team” refers to the Human Capital Methodology & Tools Team
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What has worked well at Amway (1 of 2)Embedding a Human Capital Methods Team within the HRBP Organization
Embed the Human Capital Methodology &
Tools Team within the business partner
organization
– Shared objectives regarding driving
sustainable business value
– Effective communication between teams
– Methodology & Tools design and skill
development is core expectation (not just an
initiative)
– Human Capital Methods Team is an equal
participant when setting HRBP annual
objectives
Use multiple approaches to facilitate skill
development
– Formal training and workshops (example:
case studies, fictional and non-fictional)
– Embedded Human Capital Methods Team
members on HR Client Service Practice
Teams (ref. next page)
– Partnering between teams on business
initiatives
CHRO
Human Capital
Consulting
Human Capital
Methods Team
COEs &
Departments
HR Global
Regions
HRBPs (aligned to
business units)
HR Market Leaders
(geographical)
Purposeful decision to move “slowly” in order to truly change
the HR Service Delivery model
Low resource investment in order to not grow structural costs
Restructured HRBP and HR Market Leader jobs to not
include generalist activity, freeing capacity for strategic work
Regional
Presidents
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What has worked well at Amway (2 of 2)Instituting HR Client Service Practice Teams
Purpose: deliver HR programs, processes, and initiatives to Amway’s business functions
Building a full HR service delivery team around the business areas, led by the HRBP, is critical to
effective Human Capital Strategy design and execution (application of Human Capital Strategy, pg. 4)
Practice Team structure:
2015 objectives:
Build a human capital plan per business area for realizing Amway’s Strategic Operating Model benefits
Develop HR Client Service Level Agreements that establish standards for what HR delivers to the
business, under which circumstances, and the expected outcomes
HR Partnership
as Needed
Core Practice Team
HRBP
HR GeneralistEmployee
Relations
Talent
Acquisition
Talent
Development
Compensation
Human Capital
Methods Team
Change
ManagementHRIS
Employee
Communications
Other
Functional
Partners
Finance
Other Shared
Services
No reporting relationship to HRBP Based on Clients■ HRBP team ■ Dotted line reporting based on Team assignment
Aligned to serving
Amway’s Global
Functions (“Clients”)
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Human Capital Methods & Tools Team developed four core methodologies to inform building a human capital strategy
Human Capital Strategy Methodologies
Effectiveness& Impact
ServiceDelivery Model
KSAPlanning
WorkforcePlanning
Scenarios SegmentationS
usta
ined P
rocess
DefinedUndefined
Capabili
ties
Headcount
Human Capital Demand
Hu
man
Cap
ital S
up
ply
Determine
investment
opportunities
aligned to
increasing
effectiveness
Prioritize current
resources and
activities
Identify
opportunities for
increased efficiency
and scale
Optimize
organizational
design and
workforce size
Plan for the key
capabilities required
to sustain effective
delivery
Develop
organizational
bench strength and
agility
Reduce FTE-
attributed budget
variance
Align and sequence
talent management
activity to business
plans
Additionally, HRBPs have been equipped with playbooks for:
(1) aligning global HR practitioners on business area priorities, (2) self-service HR reporting and
standard metrics, (3) organizational effectiveness as a continuous focus, and (4) workforce
planning aligned to the financial and business planning cycles
Copyright © 2015 Alticor Inc. All rights reserved.