Post on 18-Nov-2014
description
Two-Day National Conference on Building Futuristic Organizations:
Developing Sustainable Competitive Strategies
March 8-9, 2013Coimbatore
The forum expects to answer key questions including: • Are organizations of the future going to be different than the
organizations of the past and the present? If different, in what ways are they going to be different? What will be the characteristics of such organizations?
• Future organisations are bound to face challenges including Uncertainty, Unpredictability, Ambiguity and Change: in such a scenario what would be the appropriate strategies for adaptive sustainability?
• What appropriate competitive strategies can be developed and recommended for those specific characteristics?
• How can future organisations be sustainable in terms of service to society, environmental protection, long term vision, products and services, concern for people, thus addressing the triple bottom line - profit, people and planet?
10 Ways the Next 10 Years Are Going To Be Mind-Blowing• Bio Technology - Bionic Hand controlled by brain signals
• Architecture - Revolving Tower in Dubai
• Computer Speed, Size and Usability - chips will be assembled using individual atoms or molecules
• Cars and Fuel - electric
• How We Interact With the World - Goggles by Google
• Energy - Solar
• Health - custom-made organs
• Success and Popularity Accessibility - internet is the perfect tool for capitalism, entrepreneurship, and dreaming
• Robots - !!!• Clothing - would allow people to generate their own electrical current while
walking
10 Great Career Fields for the Future
Medical FieldNurse Anesthetists, Nurse Practitioners, Physician Assistants
Technology SectorSoftware Architects, Systems Engineers, Software Engineers, IT Analysts
Financial ServicesAccountants, Actuaries, Financial Advisors
Education ArenaCollege Professors, Elementary School Teachers, High School Teachers
Technical JobsPhysical Therapist Assistants, Dental Hygienists, Veterinary Technicians
10 Great Career Fields for the Future
Business Services JobsEnvironment Health Specialists, Construction Estimator
Sales JobsSales Managers, Sales Executive, Senior Sales Professional
Consulting JobsManagement Consultants, Healthcare Consultants
Engineering JobsProject Engineer, Civil Engineer, Structural Engineer, Environmental Engineer, Biomedical Engineer
Middle Management JobsResearch and Development Manager, Product Manager, Risk Management Manager
Strategies for developing
Human Capital
Human capital• Human capital is the stock of
competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform work so as to produce economic value.
• Human Capital Development is a must need effort that must be taken forward by organizations to increase the technical skills, creativity and innovation to drive the knowledge-based economy.
• Few Demands that today's workforce face –– Acquiring and retaining new customers– Generating new ideas– Improving productivity
Human Capital Uncertainties
Adoption of online HR services
Competition for talent
Organizational priorities
Regulatory constraints in HR management
Dominant type of organizational structure
Innovation and change
Regional
Heavy
Low
Cost cutting
Traditional and
hierarchical
Top - Down
Global
Light
High
Growth
Networked or Virtual
Bottom - Up
Human capital related critical uncertainties
Human capital strategy
• It is a must need today for Executives to pursue a more comprehensive and integrated human capital strategy that includes
– Talent Management– Leadership Qualities– Cultural Values– Organization Components
This helps multiply the value of talent and help create an enterprise that is able to execute business strategy and adapt to a changing market.
“ Those who can effectively translate their business strategy into an actionable human capital strategy can drive a new kind of competitive advantage—one
extremely difficult for others to imitate. “
Linking business strategy to human capital requirement
HR is responsible for acquiring, developing and deploying the people needed for an successful organization but yet many HR Departments struggle to have a deep enough understanding on how to translate the business goals into specific workforce and organization needs.
WHAT IS MISSING ???1.A strong program2.An approach led from
the top3.Visualize human capital
dimension of a business at the strategic level
Devising a Human capital strategy will link business strategy to HR strategy ,Hence bridging the gap
BUSINESS STRATEGY
HUMAN CAPITAL STRATEGY
HR STRATEGY
The business strategy defines the direction, positioning, scope , objective and competitive differentiation
Human capital strategy defines the talent, leadership , culture and organization to execute the business strategy
The HR strategy articulates the strategic direction and imperatives of the HR organization and builds out capabilities required to align to the human capital strategy
SHAP
ESSH
APES
ENAB
LES
ENAB
LES
Advantages of an effectives human capital strategy –1. Helps the organization to put in place the right leaders to
source, develop and direct the right workforce talent, supported by the right culture, organization and operating model
2. Working in the human capital dimension underpins many of the company’s most important decisions about where and how to compete
3. Helps support the organization as it balances short-term decisions with longer-term imperatives.
4. supports the organization in meeting today’s urgent needs while also helping it become agile enough to reposition itself for ongoing market competitiveness and growth
“ For a human capital strategy to be truly robust, it must not only consider the strategy of today but also its potential evolution in the future. “
Creating and implementing a human capital strategy• Human capital strategy work under four main streams –
1.Talent Management
2.Leadership Qualities
3.Cultural Values
4.Organization Component
Competency Planning Gap Analysis
Learning PlanTraining Sessions
Action and Reflective learning
Self-Directed Learning
Material Symbols
LanguageRitualsStories
Operating ModelOrganization Design
Talent Management
• In order to execute the business strategy to its best we need.– Competency assessment– Workforce planning– Gap Analysis
If properly designed and executed, programs within the talent work stream of the human capital, strategy can significantly contribute to a company’s ability to attain its business goals, and to attract, motivate and retain the right people.
TALENT
Gap analysi
s
Workforce
planning
Competency
assessment
First step – Competency assessment
Review organizations business strategy and determine the capabilities and competencies required by the workforce
Understand the impact that the business strategy will have on the workforce.
Innovate new ideas and approaches towards recruiting and hiring employees.
Second step - Workforce planning• Determine the workforce supply that the organization needs•Determine the no. of employees required for each type of Job (now and also for the future)
Third step – Gap Analysis-analyze any potential gap between existing workforce competencies and those needed to execute the business strategy going forward-Provide training to the employees who have little variance in competencies in order to fill in the gap.-Try repositioning workforce to areas in which their competencies match the requirement of the job.-Terminate dead woods who prevent the organization from moving towards its business strategy.
Talent Management
Leadership Qualities• Organizations need leaders who can –
– rally the workforce when there is a challenge, – Confront them when they are mired in the status quo, – calm them when the seas are rough, and – propel them into action when there is a crisis.
• The leadership development aspects of an organization’s human capital strategy focus on several key questions:– What is the specific value add beyond their official job titles?– What attributes, capabilities and behaviors are expected from
future leaders?– How can organizations use leadership development as a
competitive advantage?
“A leader is someone whom others will follow to a place they would normally not go on their own".
Once these key questions are answered we must put in place a leadership development program that is closely tied to the needs of the business strategy and the shifting marketplace.
Training Sessions
Leader Learning
plan
Self directed Learning
Action & Reflective Learning
Using the needs and assessment results , facilitate a Leadership learning program
Facilitation of self-directed learning projects to build the competencies most needed by the leader.projects may include case studies, shadowing, executive interviews, reading, specific skill development, behaviour change activities, etc.
Training sessions interspersed throughout the program in addition to self-directed learning, so as to guide the leadership development process.
Conduct of orientation sessions for the leadership teamSupport the team to research solutions to the challenges and enable the team to report its results to the senior management during the end of the program.Self awareness journal.share the findings with the leadership team.
The leaderships development program must focus on the following areas –
Culture Values• The basic pattern of shared assumptions , values
and beliefs considered to be correct way of thinking about and acting on problems and opportunities facing the organizations.
• It is the philosophy that guides the organization’s policy towards employees and customers.
• Today's senior Leaders believe – • business strategies stand little chance of being
adopted and executed if the current culture of their company impedes the ability to accommodate change and support the business vision.
“ Clarifying the value system and breathing life into it are the greatest contributions a leader can make. Moreover, that's what the top people in excellent
companies seem to worry about most “ – Peters and Waterman
Elements of organization culture
Individual initiative
Risk tolerance
Communication pattern
integration
Management support
control
identity
Reward system
Conflict tolerance
How to create , sustain and transmit culture ??- How it begins - founders!!
- How to keep it alive – Selection practices, Top Management and socializing
- How do employees learn the culture - Stories , rituals, language, material symbols
If Aligned –Executives must help reinforce those attributes that support the execution of the business strategy
If Not Aligned –Specific programs must be put in place to influence the culture and push it in the right direction.
Cultural alignment with business strategy
Factors Influencing cultureFactors that support Changes in culture
Factors that are against changes in culture
Foreign competition Employees become committed to them
Changes in Govt. regulations Written statements about mission and philosophy
Rapid economic shifts Design of physical spaces and building
Change in stories , rituals, material symbols, language
Dominant leadership pattern
New technologies Past selection practices
Organizations formal structure
Popular stories about key people and event
An ideal organization culture
1.Equal opportunities for employees 2.No discrimination in terms of reward or
punishment3.Understanding the individual as a person4.Standing by employees in time of crisis5.Not bending organizational rules but allowing
room for flexibility and humaneness.6.Allowing true delegation of responsibility or
authority7.Changing roles and responsibilities
appropriately.
Organization Components
Organization
Organization Design+
Operating Model
Effects
Effects
Effective job Performance
Employee sourcing
EffectsLeadership Development
Effects
Culture
Organization Design
• A formal, guided process for integrating the people, information and technology of an organization.
• Used to match the form of the organization as closely as possible to the purpose(s) the organization seeks to achieve
• Through the design process, organizations act to improve the probability that the collective efforts of members will be successful.
Organization structures• Hierarchical Structure Vs Organic Structure
Characteristics Hierarchical structure Organic structure
Complexity High – with lots of horizontal separation into functions, departments and divisions
Usually lower – less differentiation or functional separation
Formality High – lots of well defined lines of control and responsibility
Lower – no real hierarchy and less formal division of responsibilities
Participation Low – employees lower down the organization have little involvement with decision making
Higher participation – lower level employees have more influence on decision makers
communication Downward – information starts at the top and trickles down to employees
Lateral, upward, and downward communication – information flows through the organization with fewer barriers
It's worth saying that one type of structure is not intrinsically better than another. Rather, it's important to make sure that the organization design is fit for organization's purpose and for the people within it.
Organization structure
Hierarchical structure
Organic structure
ORGANIZATION STRUCTURE
Matrix structure
Simple structure
Functional
structure
Divisional structure
Network structure
functions (accounting, marketing, HR etc) are quite separate; each led by a senior `executive who reports to the CEO.the company is organized by office or customer location. Each division is autonomous and has a divisional manager who reports to the company CEO.
Often found in small businesses, the simple organization structure is flat. It may have only two or three levels; employees tend to work as a large team with everyone reporting to one person.people typically have two or more lines of report. For example, a matrix organization may combine both functional and divisional lines of responsibilityOften known as a lean structure, this type of organization has central, core functions that operate the strategic business. It outsources or subcontracts non-core functions
Key points and Advantages • Key points in design of Organization structure –
– Strategy – The organization design must support the strategy.
– Size – The design must take into account the size of the organization.
– Environment – If the market environment one works in (customers, suppliers, regulators, etc.) is unpredictable or volatile, then the organization needs to be flexible enough to react to this.
– Controls – What level of control is right for the business? – Incentives – Incentives and rewards must be aligned with
the business's strategy and purpose. • Advantages –
– Streamline Operation– Improve Decision Making– Operate Multiple Locations– Improve Employee Performance– Focus on Customer Service &Sales
Operating Model – Bridge between business strategy and organization DesignThe operating model shows how the strategy and structure of the organization is executed. The operating model must be purposefully reshaped in order for an organization to be effective.
Strategy and heritage Operating model Detailed organization design
-Where to play, including category brand and geographic priorities-How to win, including repeatable routines and non-negotiabes-Company culture and values to be preserved and cultivated
- Where and how the most critical work is done
--Detailed structure and specific decision roles-Company – wide clarity on priorities and principles-Processes, information flows, technology, tools.-Detailed metrics and feedback loops-Talent system and incentives.-Cultural reinforcements
Components of Operating Models
Programs and Services
What programs are common and unique to units?How is client contact conducted?What is the standard of service levels?
Organization structure
•Organization units and boundaries•Matrix groups and alignments (functional, geographic)•Levels and spans
Roles and Boundaries
What are the boundaries of each unit and what are the shared tasks?What information should be available across boundaries?Who has responsibility for various tasks?Are there any special boundary spanning roles?
Decision Rights
•What are the most important decisions and how will they be made?•What are the roles in the decision-making process? (e.g., inform, consult, approve, etc.)•How will decisions be evaluated?
Meeting Schedule and Design
•What people and topics should be included in regular meetings?•What are the roles in meetings?•What general norms will be followed to make meetings effective?
Goal Setting and Measurement
•What are the shared measures for common goals?•How are individual and team goals (levels) set?•What benchmarks will be used?
Operating Model
Conclusion• Today, there has been a drastic difference in the focus
of professionals to train and retrain their skill-set through higher education.
• In fact, when the going gets rough, it's time for business to train and develop their human resource capital, so that once the darker nights are over, the sunrise is glorious.
• All this said, The competition in every industry is shifting in a very drastic manner, Will Organizations be able to innovate and execute strategies that can catch up to the shift in the marketplace?? The answer to that question will solely depend on the organizations investment towards human capital assets. Sourcing and retaining top talents in the exact needful numbers and in the exact needful place in our organization will be the key to the equation. Along with this equally important are the leadership quality, cultural characteristics and organization structure that would enable our workforce talent to help our company as a whole to achieve high performance