STRATEGIC HR MANAGEMENT WITH IMPACT:

FROM STRATEGY TO EXECUTION

Marius Meyer, CEO: SABPP

10 October 2014, Harare

marius@sabpp.co.za

@MariusSABPP & @SABPP1

The need for Strategic HRM

“If HR does not force its way into the heart of

strategic planning in an organisation, it will default

into a technical and transactional dead end.”

Helen Drinan, Former CEO: SHRM

The role of HR …

IBM CEO Study 2012:

Factors impacting organisations

1 Technology factors (71%)2 People skills (69%)3 Market factors (68%)4 Macro-economic factors5 Regulatory concerns6 Globalisation7 Socio-economic factors8 Environmental issues9 Geopolitical factors

IBM CEO Study 2012

• Identifying talent issues before they impact the

business

• Adjusting HR strategies to respond to changing

business needs

• Understanding how HR business partners can

support the business

The results of our research indicated that our top three priority

CCR’s include the following:

SABPP Strategic Vision

“To Professionalise the HR Profession”

SABPP - ETQASABPP – Registration

CommitteeHRD

Committee

Business Leader’s

Expectations

OR

Critical Customer Requirements

(CCR’s)

Key HR Business Partner Outputs

Competencies

Care

er P

ath

s

Le

arn

ing

So

lutio

ns

SABPP Strategic Vision

“To Professionalise the HR Profession”

SABPP - ETQASABPP – Registration

CommitteeHRD

Committee

Business Leader’s

Expectations

OR

Critical Customer Requirements

(CCR’s)

Key HR Business Partner Outputs

Competencies

Care

er P

ath

s

Le

arn

ing

So

lutio

ns

1Communicating organisational culture/values to Employees

1Keep abreast of new legislation that may impact on business

1Preparing for different situations

2Responding to organisational changes

2Managing conflict between managers

2Assessing Employee attitudes

3Enforcing standard HR policies and procedures

3Resolving political problems in the execution of business plans

4Respond to manager needs

4Retention of talent within the business

5Capacity building/Skills development

6Quickly responding to employee needs

6Communication around HR in general

11Tracking trends in employee behaviours and attitudes.

11Keep the line updated on HR initiatives

13Prioritizing across HR Needs

25Utilising new business strategies

30Developing the next generation of leaders

32Identifying talent issues before they can impact on the business

35Identifying HR Metrics

42Adjusting HR strategies to respond to changing business needs

43Understanding how HRB’s can support the business

48Redesigning Organisational Structure around strategic objectives

54Understanding the Talent needs of the business

TOTALCCR

1Communicating organisational culture/values to Employees

1Keep abreast of new legislation that may impact on business

1Preparing for different situations

2Responding to organisational changes

2Managing conflict between managers

2Assessing Employee attitudes

3Enforcing standard HR policies and procedures

3Resolving political problems in the execution of business plans

4Respond to manager needs

4Retention of talent within the business

5Capacity building/Skills development

6Quickly responding to employee needs

6Communication around HR in general

11Tracking trends in employee behaviours and attitudes.

11Keep the line updated on HR initiatives

13Prioritizing across HR Needs

25Utilising new business strategies

30Developing the next generation of leaders

32Identifying talent issues before they can impact on the business

35Identifying HR Metrics

42Adjusting HR strategies to respond to changing business needs

43Understanding how HRB’s can support the business

48Redesigning Organisational Structure around strategic objectives

54Understanding the Talent needs of the business

TOTALCCR

PARADIGM SHIFT

OPERATIONAL MINDSET

• Day-to-day tasks

• Transactional HR

• Getting things done

• Crisis reactive management

• Doing things now

• Training for tasks

• Managing people

• Internal focus

• Short-term measures

STRATEGIC THINKING

• Long term priorities

• Transformational HR

• Creating value

• Proactive management

• Planning things for future

• Organisational capability

• Leading people

• External focus

• Strategic measures - metrics

The strategic dilemma

“How can you strategise for the future, when

you can’t see beyond 18 months?”

Fast Company Magazine

Why Bother?

• The alternative to strategising is to take

change as it comes and deal with

contingencies

HR Trends

• HR as Strategic Partner and Talent Management

• HR Governance

• HR Risk Management

• New role to impact ethics in organisations

• HR contribution to CSR and socio-economic

situation - sustainability

• HR Technology and Social Media

• HR standards and metrics – integrated reporting

• HR Competency models - professionalism

Biggest Opportunities for HR

IBM: Working beyond Borders

• Cultivating creative leaders

• Mobilising for greater speed and flexibility

• Capitalising on collective intelligence i.e. collaboration

Most important organisational

capabilities over the next five years

IBM: Working beyond Borders

31%

33%

34%

37%

28% 30% 32% 34% 36% 38%

Innovation

Client connectivity

Execution speed

Leadership

Top facts about HR

• Human Capital is the biggest concern for

CEOs (PwC).

• Only 18% of CEOs feel confident that they

have the right people in place to execute

strategy (CEB).

• Human Capital is the biggest risk in

business (HCI Africa).

• Skills crisis is the top obstacle to economic

growth.

• Strikes cost SA R197 million per day.

More facts about HR

• SA losing R12 billion a year due to absenteeism.

• Only 5% of employees understand business

strategy.

• World-wide only 13% of employees actively

engaged.

• Companies with engaged employees outperform

others by 202% (Dale Carnegie).

• Companies with good HR Practices outperform

others by treating HR as critical business function,

these companies are 105% more profitable.

• Average ROI on wellness programmes: 300%.

BUSINESS STRATEGY – HR BUSINESS ALIGNMENT

❶ StrategicHRM

❷ TalentManagement

❸ HR RiskManagement

HR ARCHITECTURE

HR VALUE & DELIVERY PLATFORM

❹Work-force

planning

❺

Learning

❻Perfor-mance

❼

Reward

❽Well-ness

❾ERM

❿OD

⓫ HR Service Delivery

⓬HR Technology

(HRIS)

Prepare

Imple-ment

Review Improve⓭ HR MEASUREMENTHR Audit: Standards & Metrics

H R

C O

M P

E T E N C

I E SSABPP HRM SYSTEM STANDARDS MODEL

HR/Line relationship?

STRATEGIC HR

MANAGEMENT STANDARDDEFINITION

Strategic HR Management is a systematic

approach to developing and implementing

long-term HRM strategies, policies and plans

that enable the organisation to achieve its

objectives.

SABPP (2013)

STRATEGIC HR

MANAGEMENT STANDARDOBJECTIVES

1.2.1 To ensure the HR strategy is derived from and aligned to the organisation’s

objectives in consultation with key organisational stakeholders.

1.2.2 To analyse the internal and external socio-economic, political and

technological environment and provide proactive people-related business

solutions.

1.2.3 To provide strategic direction and measurements for strategic innovation and

sustainable people practices.

1.2.4 To provide a foundation for the employment value proposition of the

organisation.

1.2.5 To establish a framework for the HR element of the organisation’s

governance, risk and compliance policies, practices and procedures which

balance the needs of all stakeholders.

1.2.6 To determine an appropriate HR structure, allocate tasks and monitor the

development of HR competence to deliver HR strategic objectives.

SABPP (2013)

STRATEGIC HRM STANDARD ELEMENT:

IMPLEMENTATION

Framework of HR policies & programmes

Environmental scan (PESTL)

HR structure, service model and capability

development

People strategy

HR strategic agenda

Organisation’s strategic intent

HR strategic agenda

HR business

plan

People strategy

Allocate roles & responsibilities

(line/HR/support functions)

MONITOR & EVALUATE

The Meaning of Strategy

Adaptation of the Business Motivation Model

Means

Mission

Strategy

TacticsCo

urs

e o

f A

ctio

n

Processes

Structure

Enab

lers

Ends

Vision

Goals

ObjectivesDes

ired

Res

ult

makes operative

amplified by

quantified by

planned by means of

implemented by

enabled by

External social, technological, environmental, economic, political, legal, market and shareholder requirements

Technology

Benefits Realisation

should be aligned to

Mea

suri

ng

Stra

tegy

exe

cuti

on

Typical strategic HR process

Planning &

preparing process

HR vision &

mission

Formulate

strategies

Long term HR

goals

Environment

scanning

HR analysis

Implementation/

deployment

Monitor &

evaluate

Strategic

alignment

Organisation Strategy

Corporate Scorecard Business Design (Operating Model & Value

Chain)

Organisation Design

Business Processes Work Design

Process Activities Job Design

Deployed Scorecards

Personal Scorecards

Str

ate

gic

Level

Tact

ical Level

Pers

onal Level

THE ESSENCE OF HR IS TO

ACHIEVE THE TWO TOP HR

PRIORITIES

• Employee engagement

• Employee performance (business results)

If you don’t spend 90% of your time working actively and passionately with management and employees on these two HR priorities, you are wasting your time.

If your HR practices are not focused on these two priorities, you are not adding value to the organisation.

Strategic Analysis

WEAKNESSES

• Low visibility of HR

• Poor communication

• Lack of technology

• Low satisfaction levels

OPPORTUNITIES

• Local skills development

• Stronger talent pipeline

• Alliances in countries

• E-learning

RISKS

• Safety of staff

• Political risk - countries

• Regulatory challenges

• Capacity to deliver

• Employee retention

STRENGTHS

• Good learning centre

• Clear talent pools

• Ethical culture

• Sound leadership

• Great team of expats

Do you manage HR risk?

Activity

1. What are the current strengths of your HR

Strategy?

2. What are the areas for improving your HR

Strategy?

How to become a strategic thinker

• Know the strategy of your business

• Study the strategies of other businesses

• Read more about strategy

• Internalise the annual report of your

company

• Identify HR opportunities from the strategy

• Put your strategy on one page

• Develop an HR Risk Framework

• Do proper HR analytics and metrics

The execution gap

From strategy to execution

• Make HR strategy visible.

• Convert HR strategy to specific action plans

to be executed – clear priorities.

• Clear lines of responsibility and

accountability.

• Cascade overall strategic measures to team

& individual performance management.

• Build a high performance execution culture.

• Review and monitor execution of strategy.

• Identify and resolve problems as they arise.

Value Chain in Context

Activity

1. Identify current gaps between HR strategy &

execution at your organisation.

2. How can these gaps be filled?

HR strategy:

It is all about alignment & execution

Conclusion

HR professionals need to move from an

operational to a strategic mindset. But we

need to ensure that our HR strategies are

executed. Thank you for joining us on the

journey towards high impact strategic HR

thinking, plans and results.

Let us build our organisations with sound

strategic HR Management!

professional@sabpp.co.za (Professional Registration)

xolani@sabpp.co.za (Operations)

kenneth@sabpp.co.za (Stakeholder Relations)

penny@sabpp.co.za (Research)

naren@sabpp.co.za (Learning & Quality)

marius@sabpp.co.za (Strategy inputs)

voice@sabpp.co.za (Social media)

Website : www.sabpp.co.za

Office: 8 Sherborne Str, Parktown, South Africa

Tel: +27 11 045 5400 Fax: +27 11 482-4830

Cel: 082 859 3593 (Marius Meyer)