Strategic Consulting Group THE FUTURE OF HR? Dr. Peter Saul Director, Strategic Consulting Group...
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Transcript of Strategic Consulting Group THE FUTURE OF HR? Dr. Peter Saul Director, Strategic Consulting Group...
Strategic Consulting Group
THE FUTURE OF HR?
Dr. Peter Saul
Director, Strategic Consulting Group
Paper presented to:
Macquarie Graduate School of Management’s
“People Management and Leadership Conference”
September 16-19, 2001
Strategic Consulting Group
SHIFTS THAT ARE RE-SHAPING HR ROLES
FROMLocal markets, operations
Manufacturing, clerical work
Hierarchy
Intermediaries; face-to-face
Obedience to formal authority
Stability, efficiency, control
Full time job
Customer service
Work done by employees
Fixed work location
Management prerogative
Loyal service
White, male workforce
Financial performance
“Get a job”
TOGlobal markets, operations
Service, knowledge work
Networks
Direct access,virtual relationship
Questioning of formal authority
Change, creativity, flexibility, order
Part-time and project work
Shareholder, stakeholder value
Work done by many contributors
Diverse work locations
Social licence
Marketable knowledge, skills
Diverse workforce
Triple bottom line
“Get a life”
Strategic Consulting Group
CHANGING WORKER ASPIRATIONS
RICHARD BRANSON
MICHAEL JORDAN
RICHARD BORES (Wizard Home Loans)
MERY STREEP AND JODIE FOSTER
ANITA RODDICK
NELSON MANDELA AND JERRY MAGUIRE
“…had a dream and went through with it...loved what he did…lives life the way he wants... created this lifestyle for herself out of what could have been a downward spiral…really inspiring”
AFR BOSS magazine, June 2001. Survey of work role models for white collar Australians, in 20-30 years age range.
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HR AT A CROSSROADS
“Significant change is inevitable for HR” but “what HR will be and do is not yet clear”
SRHM is doing research to develop a vision for the future of HR and a profile of the future HR practitioner
An HR practitioner might be "a hybrid line manager" who is "first and foremost a business executive" but has expertise in at least one HR function. SHRM President and CEO, Helen Drinan
“We have to get management to understand that they're responsible for people” AND “If we do our job—and work ourselves out of a job—so be it."
Results of a forum on the "The State of the HR Profession" held in conjunction with the 2001 Annual Conference of the Society for Human Resource Management
Also see FT.com online forum on “Human Resources: A career in crisis?”
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EMERGING LEGAL ISSUES AT WORK
NEW TECHNOLOGY ISSUES
AGE CONSCIOUSNESS IN THE WORKPLACE
GLOBALISATION OF EMPLOYMENT LAW
TRAINING FOR LEGAL COMPLIANCE
WORKPLACE SAFETY
Source: Garry Mathiason (Littler, Mendelson, Fastiff, Tichy & Mathiason) SHRM Annual Conference June 2001. Results of survey of 400 employment attorneys
Strategic Consulting Group
HR EXECUTIVES’ VIEW OF THE FUTURE
TOP 5 BUSINESS CHALLENGES
Developing new markets
Improving profitability
Market share growth
Becoming the recognised global market leader
Building shareholder value
TOP 3 HR CHALLENGES
Attracting and retaining talented people
Improving organisational capabilities
Developing leadership skills
Source: Arthur Andersen survey of HR Executives in almost 70 Australian-based firmsReported in HR Monthly, August 2001, p.17
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“The bad and the ugly in HR”
“Many HR people still lack business acumen”
“We have not adequately managed high expectations of HR”
“There’s too much modeling of mediocrity… and way too little real research going on”
“We have overhyped e-learning and some other fads”
“We do much order-taking… and mistaking talk for action”
Jim Moore, former Director of Workforce Development at Sun Microsystems in his address to the 2001 SHRM Annual Conference
Strategic Consulting Group
Q. So, how do we organise all the shifts, trends,
speculation and forecasts into a framework
that can guide fruitful conversations between,
and strategic decision making by, senior line
managers and HR professionals?
A. Scenarios is one way
Strategic Consulting Group
FOUR AUSTRALIAN SCENARIOS
“FIRST GLOBAL NATION”Australia capitalises on globalisation; promotes its internal diversity and ethnic tolerance; and boosts home-grown innovation and industry capability
“SOUND THE RETREAT!”Globalisation stalls as political and social structures are not ready; trade barriers and nationalism re-emerge; we depend on bilateral national and commercial relationships
“BRAVE OLD WORLD”Complacent, dependent on agriculture, tourism, “new” manufacturing and some biotech; clever people and companies move overseas
“GREEN IS GOLD”We emerge from the growing imperative to protect the natural environment as a leading innovator of global environmental management
Source: Australian Business Foundation “Alternative Futures: Scenarios for Business in Australia to the Year 2015” Sept 1999
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DEFENCE: ‘In the Box’ Scenario Matrix
Open globalised world economy
Closed protectionist
world economy
Social polarisation and exclusion
Global middle
class
Source: Hardin Tibbs report to Australian Defence HQ 1999
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DEFENCE: ‘Way Out of the Box’ Scenario Matrix
Revolution in basic science
Science reaches a
plateau
Psycho-social evolutionarypunctuationDiscontinuity in human consciousness
Singleworld
governmentSocial progress with
no discontinuity
Source: Hardin Tibbs report to Australian Defence HQ 1999
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TWO SCENARIOS OF THE 21ST CENTURY ORGANISATION
MIT Initiative on Inventing the Organizations of the 21st Century (January 1997) facilitated by Peter Schwartz of the Global Business Network:-
http://ccs.mit.edu/21c/21CWP001.html
The scenarios were developed during 1994-1997 by MIT academic and research staff in discussions with hundreds of executives at various MIT Symposia, executive education programs, etc.
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FUTURE OF ORGANISATIONS: Scenario 1
SMALL COMPANIES,LARGE NETWORKS Autonomous teams of 1-10 people Temporary - task or project based Linked by high bandwidth, electronic network Venture capital infrastructure identifies promising teams and
provides financing
Independent organisations for social networking, recreation, learning,reputation building and income smoothing evolved from professional associations, unions, clubs,
university alumnis, neighbourhoods, families, churches they are home for our identity as projects come and go
Examples: Film industry; Prato Mills (Italy); Nike; Nokia PC Display Division
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Small Company, Large Network HR
Very specific HR scope focused on project organisation (e.g. talent scouting/selection, pay, health & safety)
Outsourced agents, brokers, specialist providers contract staff organisations handle the HR for their talent
as part of their brand and competitive strategy
Mutual employment obligations spelled out in project contracts or implicit in industry standards or assumed from past working experience
Project Manager’s reputation depends on his/her people skills and hence there is a reluctance to delegate to HR specialists
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Small Company, Large Network HR (cont.)
Selection is via networks, personal references, reputation
Performance management is via peer pressure and industry/ professional standards
Rewards are contractual or entrepreneurial (equity based)
Development is via doing leading edge projects
Innovation is via brokers, deal makers, agents, sponsors
Individuals rely on professional associations, “guilds”, managers/agents
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FUTURE OF ORGANISATIONS: Scenario 2
VIRTUAL COUNTRIES Keiretsu-like alliances with operating companies in every country Minimal national allegiance - primary loyalty is to the corporation Traditional hierarchy or decentralised divisional structure Company is the focus for individual identity Company meets employees’ needs from cradle to grave Employees own the firm AND have right to elect the Board and
management Open book accounting informs management elections Specialist “organisational designers” travel through firm brokering
partnerships and fostering cross boundary communication
Role of governments, industry unions is significantly reduced
Examples: Asea Brown Boveri; GE; Johnson & Johnson
Strategic Consulting Group
Virtual Country HR
HR almost replaces social welfare, education systems and provides financial management and estate planning services, etc
Corporate (strategic) HR sets standards and monitors the corporate culture helps Marketing build the corporate brand
Divisional (operational) HR total care of employees so they are free to focus on
performance
Actively involved in local communities to reinforce the company culture and image
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Virtual Country HR (cont.)
Selection emphasises fit with corporate values
Performance management focuses on results achieved the “XYZ way” and on being a company ambassador in all areas of life
Reward is via promotion, enhanced status, rights, benefits - and pay
Development is via corporate colleges and universities in partnership with the world’s best educational institutions
Innovation is through internal R&D and improvement programs with heavy emphasis on protecting corporate intellectual property
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CHANGING “HR” ROLES: Some Generalisations
PAST
HR ROLE WAS CLEARLY
DIFFERENTIATED mechanistic
(Personnel Admin) ritualistic, legalistic (IR) CEO’s eyes and ears
with the troops distinct professional
career paths
HR is HR’s responsibility
FUTURE
PEOPLE/LEADERSHIP ROLE IS DISTRIBUTED AND DIFFUSE
knowledge management relationship management;
teamwork legal compliance change management no distinct HR profession -
new hybrid roles emerge
People/Leadership is everyone’s responsibility
Strategic Consulting Group
NEW CRITERIA FOR RATING “HR”?
Profit generated per employee (compared to industry benchmark) Salary/wages costs compared to industry median (reflecting
value of corporate reputation/intangibles in labour market) Number of talented candidates applying for advertised (and
unadvertised) vacancies Time taken to satisfy customer orders, inquiries, complaints
(compared to agreed service standards) Incidence of customer complaints caused by employee behaviour Cost of re-work Cost/risk due to time lost through injuries, absences, disputes Rate/cost of unplanned turnover among good performers Percentage of customers citing “service quality” or “competent,
caring staff” as a competitive edge for the company Net cost of generating organisational improvements Percentage of revenue/profits coming from initiatives taken in
last 3 years Share price premium compared to industry peers
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AN INTEGRATING STORY?
OUTCOMES(Stakeholders)
Shareholder/Investor
Customer
Contributor- employee- other
Community
FUNCTIONS(Management)
FinanceInvestor Relations
Sales & MarketingOperationsR&D
“Contributor Relations”Contracts (Legal)Supply
PRCommunity Relations
ARCHITECTURE(Leadership)
VISION & MISSION
CORPORATE STRATEGY
Competitive strategyDevelopment strategy
Leadership styleCulture/Values/Ethics
ORGANISATIONAL DESIGN
StructureTechnology
Place
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MAPPING YOUR ORGANISATION’S CURRENT TRAJECTORY
Get Talent
Motivate Talent
Reward/ Recognise
Talent
Develop/Skill
Talent
Tap/ Utilise Talent
Retain/ Transition
Talent 2000s
1990s
1980s
1970s
1960s
Derived from an HR framework proposed by Brian Young “PeopleFirst Solutions”Previously Asia Pacific HR Director for Deutsche Bank
Strategic Consulting Group
MORE WINDOWS INTO POSSIBLE FUTURES
SOME WEB SITES ENGAGED IN THE SEARCH:
http://ccs.mit.edu/21c/index.html
http://www.foresight.gov.uk/default800.htm
http://www.defence.gov.au/nspb/htibbs-futuresV.4.ppt
http://www.dol.gov/dol/asp/public/futurework/welcome.html
http://www.fastcompany.com/
http://www.bsr.org/ and http://www.csp.uts.edu.au/
http://www-csc.mty.itesm.mx/~laava/KMetaSite/menu/sitemap.htm
http://www.managewithoutthem.com/
http://www.futurists.net.au