Not for profit and Not for profit and community service community service

introduction introduction

The OPD system of strategic human resource management (SHRM) for

achieving sustainable superior performance

Aligning staff behaviour with strategy and goals improve results

Why bother?Why bother?

• SHRM is an undervalued strategic factor in the results

• OPD-SHRM is a superior system

• OPD-SHRM will improve results 20-20%

• We recommend a step by step process in assessing OPD-SHRM

Reviewing current Reviewing current strategic HR processesstrategic HR processes

If alignment staff behaviour with goals was improved 10%:

• Would results improve? … and by how much?

• Would leadership be easier?

Could the alignment be improved in this organisation?

Does the organisation take SHRM seriously?

Who is responsible for ensuring alignment?

Would a clear and definite system make it easier to drive the alignment and achieve improved results?

Why OPD?Why OPD?

Why is OPD a superior SHRM system?

Current global state of strategic HR

Global HR best practice consists of a range of unconnected activities with strategic HR having limited impact due poor definition and weak underlying processes

Research shows number of problems

• Team leaders find HR an admin chore that does not add value

• HR activities are delivered in uncoordinated silos as “latest new initiative” and achieve limited long term, sustainable results

• Once team leaders lift ‘foot off the pedal’ performance slips back and plateaus

Why…? Background fact

• Globally there is no clear scientific and causal link between strategy and staff behaviour (including a definition of SHRM)

Proposition• If we had such a link team leaders could be guided to use it to

achieve superior sustainable staff performance

SPORT

Goal

Action (ideal actions enabling best chance of greatest success)

BUSINESSThe organisation is separate from people therefore

KPIs

Ideal actions

The goal action principle is causal More of the ideal action more of the goal

Ideal actions underlie every strategy independent of people

FundamentalsFundamentals

Strategy

Goal cascade

Ideal Actions Get people

to do it Monitor that it is done

The OPD conceptThe OPD concept

Strategy

Team structure, roles in teams, goals in each role (1)

KPIs (2)

Ideal actions to achieve goals/KPIs (3)

Leadership actions to:identify ideal actionsguide delivery of ideal actionsmaintain ideal actions

HR-KPIs (1-9)Measure team leader effectiveness with HR

processes to build alignment in their team. Becomes the key driver

of SHRM in the business.

(No red SHRM policy)

Psychological Targets

Engagement:

•Clarity of goals/KPIs (4)•Clarity of ideal actions (5)•Visualization of action (6)

Commitment:•Motivation as personal commitment to work success (7)•Self-discipline or professionalism (8)•Support to deliver ideal actions (9)

The OPD–SHRM solutionThe OPD–SHRM solution

The OPD-SHRM modelThe OPD-SHRM model

OPD-SHRM is a superior system because it is based on the only scientific and

causal model of the link between staff behaviour and results

It is the OPD-SHRM model that drives superior sustainable performance

Defining SHRMDefining SHRM

Under the OPD model SHRM is defined as the alignment of staff behaviour with those actions that offer the greatest chance of goal success (align actual behaviour with the ideal actions).

SHRM is the SHRM is the fundamental driver of fundamental driver of

resultsresults

SHRM is the translation of strategy into action

Managing the SHRM processes will increase human performance and

improve results

Strategy

OPD-SHRM defines the OPD-SHRM defines the performance stackperformance stack

Implement SHRM processes aligning staff behaviour with

strategy

SHRMIS monitoring the SHRM processes

are implemented

HRIS analytics

Finance/MIS analytics

Results

OPD-SHRM is global unique provider of SHRM processes assuring alignment of staff behaviour with strategy.

OPD-SHRMIS monitors each team leader is implementing SHRM processes to give team greatest chance of greatest success.

SHRM is the crucial leadership tool enabling improved application of MIS & HRIS analytics

Key principlesKey principles

The OPD model:

Links strategy with staff behaviour via ideal actions. Is fully scientific and causal in improving results. Leads to the definition of SHRM as the alignment of staff

behaviour with goals via ideals. Leads to the performance stack making SHRM the primary

driver of business results. Is the goal-action link whereby all other metrics (financial/MIS

and HRIS) can be used to improve the results.

Improving SHRM in your business will improve results.

What OPD-SHRM What OPD-SHRM offersoffers

• SHRM producing superior results: Superior HR processes based on an improved understanding of SHRM such that the processes are causally linked to strategy leading to superior performance and outcomes.

• SHRMIS enabling superior results to be maintained: Monitoring via the SHRMIS system that team leaders are implementing the processes enables sustainable superior performance.

OPD operationsOPD operations

How is OPD-SHRM implemented?

1.Build architecture

2.Guide people to act out the ideal actions

3.Monitor it is being done to standard to maintain superior performance

The OPD-SHRM The OPD-SHRM processprocess

Revenues

Direct Costs

Gross margin

Overheads

EBIT

Ideal actions

Strategy/goals/KPIs

OPD-SHRM success is driven by the model not the web site which is the

administration for ensuring the steps of the model are performed to standard

The client -OPD The client -OPD strategic partnershipstrategic partnership

The client provides detailed insight, understanding and best judgment of what is needed to achieve best result

OPD provides a system of strategic HR processes that captures client insight and so enables ongoing improved management of human performance as a strategic factor in results

OPD-SHRM OPD-SHRM administration and administration and

supportsupport

Consulting support

1. Comprehensive team leader coaching

2. Ongoing consulting to support effective delivery of the system

3. Development of internal HR staff

4. Email and telephone help desk

5. Ongoing tactical and strategic reviews

6. Ongoing back up for internal staff

7. Ongoing audits to support sustainability

Web system components

1. Architecture – teams, roles in teams, goals/KPIs, ideal actions

2. Cultural audits

3. Customer audits

4. Internal customer audits

5. Leader monitoring (HR-KPIs)

6. Training needs identification

7. Training and coaching materials

8. Learning firm

9. Performance assessment

10. Performance management

11. Strategic leadership planning

The role of HR is to identify shortfalls in delivery of SHRM by any team leader, check skills and if needed report to the management team

Revenues

Direct Costs

Gross margin

Overheads

EBIT

Ideal actions

Results/targets/KPIs

Strengthened strategic Strengthened strategic role of HR as driver of role of HR as driver of

resultsresults

Strategy (Business targets)

Ideal actions

(Leadership targets)

Get people to do it

The OPD –SHRM building The OPD –SHRM building superior sustainable superior sustainable

resultsresults

Cultural management Populate the architecture andapply psychologicalprocesses to buildengagement.

Monitor leadership applicationUse OPD-SHRMIS to monitor allleaders are implementing OPD-SHRM in their teams.

Organisational developmentBuild architecture.

Team leaders applying

OPD-SHRM

Strategy (Business targets)

Goal cascade (enable identify ideals)

Ideal Actions (leadership targets)

Get people to

do it

Ethnic & cultural Ethnic & cultural considerationsconsiderations

Communication must consider staff social, cultural, and ethnic background

The web based admin The web based admin systemsystem

Guides implementation of OPD model User friendly Simple Requires little admin time Focus is on building ‘images and

positive emotions’ in mind Effective strategic HR-KPI monitoring to

support sustainability

Sample web system Sample web system menusmenus

SHRMIS reportSHRMIS report(no red SHRM policy)(no red SHRM policy)

The effect of OPDThe effect of OPD

What is the result of OPD?

Improvements in: Commitment and motivationOwnershipClarity of goals and ideal actionsEngagementSatisfaction Team leadership Coaching effectiveness Performance management Team relationships Training effectiveness Culture

Revenues

Direct Costs

Gross margin

Overheads

EBIT

Ideal actions

Results/targets/KPIs

Improved psychology, Improved psychology, culture and HR culture and HR

processes processes

Improvements resulting Improvements resulting from improved SHRMfrom improved SHRM

Before % PIF After %

Revenues $1,000,000 100.0% NA $1,000,000 100.0%

Costs $900,000 90.0% -3% $873,000 87.3%

Surplus $100,000 10% $127,000 12.7%

Assuming a 10% improvement in human performance with 1% gain in human performance producing 0.3 cost decrease. Surplus increased by 27%.

Surplus may not be taken in cash, rather in better results for same costs.

Goals/results(qualitative & quantitative)

Ideal actions

Actual behaviour

Human performance increase (causal increase in results)

Link to results (OPDPPL)

Financial results

Qualitative results•Comprehensive rollout of strategy•Improved delivery of services •Increased customer satisfaction•More responsive teams•Reduced stress•Leadership easier

Factors in the spreadsheetFactors in the spreadsheet

The spread sheet factors:

1. Increased human performance is an increase in delivery of the ideal actions.

2. Minimum improved delivery of ideal actions is 8%-16%.

3. Improving ideal actions links directly to results:

a. Revenues increase by 0-0.2%

a. Frequently no link between staff behavior and revenues.

b. Costs decrease by 0.2-0.4%.

4. Multiplying the human performance gain (2) by the profit link (3) gives the performance improvement factor (OPDPIF).

5. People learn how to do it better and better, therefore results improve over several years.

Not for profit cost Not for profit cost reductionsreductions

Not for profit OPD set up fee $200,000

Revenues 1,000,000,000$ Costs % 100% OPD annual fee 300,000$

$ exclude GST Pessimistic Realistic Optimistic Range

Human performance increase 8.0% 12.0% 16.0% 8% to 16%

Revenue link 0.00% 0.00% 0.00% 0% to 0.2

Cost link 0.10% 0.20% 0.30% 0.2% to 0.4%

Before OPD % OPDPIF After OPD %

Revenues 1,000,000,000$ 100.0% 0.0% 1,000,000,000$ 100.0%

Operating costs 1,000,000,000$ 100.0% -0.8% 992,000,000$ 99.2%

Surplus -$ 0.0% 8,000,000$ 0.8%

OPD costs 500,000$

Surplus after OPD costs 7,500,000$ 0.8%

OPD increase in surplus Pessimistic (year 1) 7,500,000$ 0.8%Open spread sheet with double click Realistic (year 2) 23,700,000$ 2.4%Insert own numbers in green cells. Optimistic (year 3) 47,700,000$ 5.0%

Frequently asked Frequently asked questions questions

How do we know it will work?

Why will managers do it and what will keep them doing it?

How much time does it take?

How much administration time is involved?

How long does it take to fully install?

Can we have a trial?

Are there any direct savings?

What are the hidden costs?

How does it fit with what we do now?

Much of this we do, so why can’t we do this for ourselves?

SummarySummary

Human performance is a strategic factor in results.

SHRM needs to be taken more seriously and when it is it can provide major gains in results.

Improved alignment of staff behaviour with goals/KPIs will improve goal achievement.

A SHRM system with causal link between goals and staff behaviour is essential to ensure the superior sustainable results.

The OPD-SHRM is the only causal system that can enable full human potential.

It is more effective and more economic to lease a system.

The next step…The next step…

SHRM will pay back, there is value for money with strong returns.

OPD-SHRM can provide the framework for improved strategic alignment and improved results.

There are many considerations and the decision needs taken step by step.

What is suggested as the next step...?