Shaping the role of human resource
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SHAPING THE ROLE OF HR: Tactics for Strategic Change
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SESSION OBJECTIVES
Broaden perspectives Challenge the conventional wisdom
regarding HRM Peek into the future
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Survey Says…..
50% of HR professionals see themselves as strategic business partners within their organizations
But only 17% of HR professionals say they are invited to participate in the initial stages of major enterprise initiatives
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Closing the Gap Requires
A change in mindset HR The Enterprise
Continuing to performing the basic functions well
Organizational Literacy Courageous Leadership
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A New Mindset:HR as an Investment, Rather than an Expense
Historically: HR and people were not considered tangible assets. The ‘means of production’ was a machine bolted to the factory floor. People merely operated it.
Today: The intangible of human capital (what people know + their level of commitment to the organization) is the prime driver of organizational results.
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A New Paradigm
HR is shifting from focusing on the organization of the business to focusing on the business of the organization
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The Goal
The intent of the new HR paradigm is to achieve alignment among the
Strategy Structure Culture
of the enterprise.
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Strategic HR
Focus Alignment Process integration Information management Innovation Measurable results
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Strategic HR
Partner
Change agent
Passionate about people as the source of organizational success
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The Foundation
Traditional HR Functions Employment Compensation Benefits Training/Development
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Just a Thought
If you keep on doing what you’ve always done, you’ll keep on getting what you always got………
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Emerging Functions
Additional value added: Multi level performance analysis –
people, teams, the organization Aligning HR process to drive
organizational results HR as a component in the enterprise
value proposition, in vision & mission achievement
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High Gain HR Questions
How do people create value for the organization?
How does HR contribute to and measure the value creation process?
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HR Evolution:Personnel”Functions Transactions
Compliance
Record keeping
Financial Focus Cost minimized
Key Strategies Rule knowledge
Process efficiency
Products/Services Payroll & benefit administration
Job descriptions/standards
Training
Compliance
Metaphor The enforcer
Paradigm Technical correctness
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HR Evolution: “Human Resources”Functions Advisory services
Problem solving
Operational issues
Financial focus Cost control
Key strategies HR practices
Business context
Products/services Recruiting, Performance evaluation, Payroll, Position management, Employee relations, Training & Development, Risk management
Metaphor Business Partner
Paradigm Process Improvement
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HR Evolution: “Human Capital”Functions Capacity building
Opportunity identification
Strategic issues
Financial focus Investment analysis (ROI)
Key strategies Systems thinking
Strategic consulting
Products/services Human capital planning, Talent management, Leadership development & succession planning, Performance culture, Competency systems, Metrics
Metaphor Strategic Partner
Paradigm Transformation
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HR Strategic Architecture
HR Function
HR professionals with strategic competencies to deliver products/services that drive organizational success
HR SystemPerformance driven, strategically aligned
policies & practices
Human Performance
Strategically focused competencies, motivation, skills,
capabilities
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The Strategic HR Model
StrategicHR
Leadership
The HR Value Proposition:
Linkage to Results
Business Literacy: HR knows the business
Doing the ‘basics’ well
Know the HRBOK
Personal credibility of the HR practitioner
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An Emerging HR Mindset
Focused on adding value for the customer
Proactive Willing to assume risk Results driven
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HR Best Practices
HR Practice Measures
Bottom 10% Top 10%
Qualified applicants per hire 8 37
Annual training hours:
Per new employee
Per experienced employee
35
13
117
72
% employees receiving performance appraisal
360 feedback41%
4%
95%
52%
% hired based on a validated selection test
4% 30%
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Tactic: A Consultative Approach A phased, modular, repeatable and
iterative process for HR professionals so that customer relationships are enhanced. Strengthen the HR value proposition Create enterprise HR bench strength Manage HR professionals as an
enterprise asset
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A Best Practice: HR Consulting Setting the Stage Entering, Scoping, Contracting Diagnosis Determining Action, Planning,
Implementation Assessing, Closing
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Skills
For each Phase: Structure Challenges A set of consultative skills
An Action Learning Activity to transcend the learning
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HR CHALLENGES
Focus strategically- act tactically Assessment
Develop/apply new measures Audit measures Analyze & report
Change planning and implementation
Continuous improvement
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A Couple of Closing Thoughts Be careful of yesterday’s success,
because success tastes so good it dulls the appetite for risk…..
The significant problems in life cannot be solved from the same mode of thinking that created them………