STRATEGIC

HUMAN

RESOURCE

MANAGEMENT

15 August 2016

PROGRAMME CUSTOMISATION – KZN DSR

A Steep Contribution Curve

Pursuing Excellence in Organisation Performance for Management and Leadership Delegates

Global Leadership

Vision

Strategy

Execution

Competencies

Differentiation

Values Driven

Driving

Performance

Relevance to

Sponsoring

Organisation

Execution

Capability

Process

Executive Leadership Development

Programme (ELDP)

Senior Management Development

Programme

(SMDP)

New Managers Development

Programme (NMDP)

Su

cc

es

sfu

l Ex

ec

utio

n

2016 2017 2018

KZN

DSR

Organisation

Value

Management Development

Programme (MDP)

Contribution of Leadership Development Programmes to KZN DSR

Performance

Contribution of Leadership Development Programmes to KZN DSR

Performance DESIGN: COMPETENCIES (VARIABLES)

• Context: SHRM

• HR Systems

• HR Processes –

Managing People and Change

in a VUCA World

• HR and Performance Management

AGENDA

• War for talent (supply and demand)

• VUCA World

• Recession and downturn

• Skills > Productivity > Performance > Competitiveness > Job

Creation > Standard of Living/Quality of Life (per capita GDP)

• Global trends and examples

CONTEXT: SHRM

Source: Goldman Sachs (2014)

2030: WHAT THE WORLD WANTS(Changing Global Consumption Patterns)

Source: World Health Organisation

2050: WORLD POPULATION GROWTH

Average hourly

compensation of

production

workers:

2003 vs. 2009

Source: Boston Consulting Group34.46

25.34

22.61

20.14

20.01

13.01

5.47

3.9

3.83

3.28

2.38

1.68

1.27

30.6

21.86

20.68

17.87

17.77

9.99

3.64

2.75

2.7

2.45

1.5

1.12

0.8

3.86

3.48

1.93

2.27

2.24

3.02

1.83

1.15

1.13

0.83

0.88

0.56

0.47

0 5 10 15 20 25 30 35

Germany

US

Japan

UK

France

Korea

Czech Republic

Brazil

Poland

Mexico

Russia

India

China

US$

Increase

2003

2009

*

Source: Vosburgh, Evolution of HR: Developing HR as an Internal Consulting Organisation p.15

Aligning HR Strategy to Business Strategy

• Context: SHRM

• HR Systems

• HR Processes –

Managing People and Change

in a VUCA World

• HR and Performance Management

AGENDA

ROAD MAP

Sourc

e T

ale

nt

Change M

gm

t

Com

pensa

tion

Incenti

ves

Success

ion

Leaders

hip

Benefi

ts

Locati

on

Cult

ure

/fi

t

Valu

es/

eth

ics

Skills, Reward Values, Motivation

Core Business Capability

Strategic

Priorities

Focus

People

Capability

Work

-Lif

e

Tim

eline

Talent Acquisition (Attraction)

People Engagement (Relationship)

People Retention (Development)

HR SYSTEMS

Planning to return to country of origin in the future

56

36

8

0

10

20

30

40

50

60

Yes Don't know No

%

When planning to return to country of origin

21

3028

710

4

0

5

10

15

20

25

30

35

1-2 3-4 5-6 7-8 9-10 11+

Years

%

Number of organisations employed with since

completing last qualification

53

30

124 1

0

10

20

30

40

50

60

One Tw o Three Four Five +

%

Preferred country for relocation Rank

UK 1

US 2

China 3

Australia 4

France 5

Canada 6

Switzerland 7

Spain 8

Germany 9

India 10

INTERNATIONAL MOBILITY

FINDING THE RIGHT FIT

Individual

Values

&

Goals

Job Satisfaction

Lifestyle Compensation

Talent paradox: high unemployment but employers can’t find skills needed

Source: Linkedin (2016), Global Recruiting Trends, p. 9

Measuring Quality of Talent Hired

NATIONAL PATTERNS OF CORPORATE CULTURE

OF CORPORATE CULTURE

Source: Riding the Waves of Culture, Fons Trompenaars

INCUBATOR GUIDED MISSILE

FAMILY EIFFEL TOWER

Decentral

Central

Informal Formal

Sweden

France

Belgium

India

JapanSpain

USA

Canada

UK

Denmark Netherlands

Germany

CULTURE

• Attitude and atmosphere of a company

• Fit person and culture (unspoken rules)

• Reading the cultural gaps (organ

transplant/rejection)

• Examples: lifestyle, pace of change, internal

competition, power centralised?

VALUES

Important or lasting beliefs or ideals shared by the members of a culture

about what is good or bad and desirable or undesirable. Values have a

major influence on a person’s behaviour and attitude and serve as

broad guidelines in all situationsSouce: BusinessDirectory.com

• Values, behavior and performance

• Global organisations

• Imposed versus emergent culture

● Integrity ● Fun ● Customer Service ● Honesty ● Excellence ● Reliability

Talent Acquisition (Attraction)

People Engagement (Relationship)

People Retention (Development)

HR SYSTEMS

PEOPLE ENGAGEMENT

Source: ILO (2016), Framework Strategy for Engagement in Africa, p. 16.

Engagement in Fragile States in Africa

EFFECTIVE TEAMS

- Why work in a team?

- A good team produces better results than an individual working alone

(ideas, solutions, scope)

- Dynamic teams

Planned process:

1. Introductions

2. Meetings

3. Ground rules

4. Project task

5. Roles

6. Problems

THINKING HATS

Human Knot

Everyone stands in a circle and puts

their right hand into the middle. Clasp

hands with someone across the

circle.

Everyone put their left hand into the

middle of the circle and clasp the

hand of a *different* person.

The team is now in a “knot”.

Object: team to untangle itself without

releasing anyone’s hand.

Conflict and dispute resolution (CCMA)

Legislation framework

Unionised bargaining

Implications for business and economy?

EMPLOYEE ENGAGEMENT: SA?

Case: Marikana - Mining Industry

Outlook for Mining Industry

CASE READINGS (ENGAGEMENT)

Q: Could Marikana tragedy have been averted?

Q: If yes, what actions could have been taken?

Q: If no, why not?

Readings/References:

Marikana as a Tipping Point, R. Harvey, SAIIA

Marikana Massacre: Historical Overview of the Labour Unrest in the

Mining Sector in South Africa, C. Twala, SAPSS

GLOBAL COMPENSATION

- $100,000 (basic gross salary)

- 7,550*0.10 = 755

- 30,650-7,551*.15 = 3,465

- 74,200-30,651*.25 = 10,887

- 100,000-74,201*.28 = 7,224

22,331

Add:

FICA tax: 7,650

7.65% of gross income

Total income tax: 29,981

(30%)

- £50,000 (basic gross salary)

- 2,150*.10 = 215

- 33,300-2,151*.22 = 6,853

- 50,000-33,301*.40 = 6,680

13,748

Add:

NI contributions:

11% to 34,840 3,832

Total income tax: 17,580

(35%)

Income Tax: US vs. UK

Non-resident

15% on earnings

Singapore

Resident individual

0-20% incremental scale

SA

40% marginal tax rate (>R638 600)

GLOBAL COMPENSATION

Income Tax: SA vs. Singapore

COMPENSATION /PERFORMANCE

- Communication

- Entrepreneurship

- Analytics

Skills and abilities most important to recruiters when hiring

international candidates

67

66

61

56

56

53

51

39

39

33

33

33

31

28

28

28

22

17

11

8

6

5

0 10 20 30 40 50 60 70 80

Communication skills and language fluency

Entrepreneurial, creative, innovative thinking

Analytical reasoning

High potential - ability to learn new skills

Self-starter, goal driven and independent

Leadership skills

Strategic thinking

Flexibility and adaptability to change

Participating in and leading international teams

International business experience

Ethics and values

Open mindedness

Quantitative skills

Aligned with corporate culture

Operating in a multi-cultural environment

Emotional intelligence and stability

Technical skills requirements

Transparency

Managing risk and uncertainty

Project management

IT capability

Other

%

Importance of

Competencies

Importance of

Competencies

67

66

61

56

56

53

51

39

39

33

33

33

31

28

28

28

22

17

11

8

6

5

60

23

25

39

28

30

25

36

31

43

14

22

12

18

49

26

27

6

15

17

3

5

0 10 20 30 40 50 60 70 80

Communication skills and language fluency

Entrepreneurial, creative, innovative thinking

Analytical reasoning

High potential - ability to learn new skills

Self-starter, goal driven and independent

Leadership skills

Strategic thinking

Flexibility and adaptability to change

Participating in and leading international teams

International business experience

Ethics and values

Open mindedness

Quantitative skills

Aligned w ith corporate culture

Operating in a multi-cultural environment

Emotional intelligence and stability

Technical skills requirements

Transparency

Managing risk and uncertainty

Project management

IT capability

Other

%

MBA Graduates

Recruiters

Comparison: recruiters and MBA graduates

AT QA TD CP CS MP EC IN

Business Core Function

Investment Management

COMPETENCIES

AT QA TD CP CS MP EC IN

Business Core Function

Production and Operations Management

COMPETENCIES

PRICES AND COST OF LIVING

- London weighting allowance

(c. 10%)

- Accommodation

(rent/mortgage)

- Food, meals

- Location

- Travel/car/petrol/rail

LIFESTYLE

- US and Asia: longer

working hours

- UK: longer than rest of

Europe

- Africa and SA?

Talent Acquisition (Attraction)

People Engagement (Relationship)

People Retention (Development)

HR SYSTEMS

• Immediacy

• Employer brand value (EVP)

• Talent engagement (key to retention)

• Employment value proposition

• Talent challenges

• Developed versus Emerging/Dynamic Markets

• Global talent pool

• Talent management in Africa/South Africa

TALENT RETENTION AND DEVELOPMENT

• What are you worth?

• What determines your value in the marketplace?

• Potential and experience

• Trends in supply and demand (across sectors, functions,

• geographies

THREE CAREER PHASES

PHASE 1:

Promise

Perceived Value

(Potential +

Experiential)

PHASE 2:

Momentum

PHASE 3:

Harvest

Value of

Human

Capital

Career Timeline

Career Beginning Retirement

Experiential value

Source: Citrin & Smith, 2003

LEARNING FROM LEADERS

What makes a successful leader?

• Overcome permissions paradox

• 20/80 performance principle

• Pragmatic and authentic leadership

• Find right fit (strengths, passions, people)

LEADER PROFILE : Greg Brenneman

“Making the complex simple”

• - Partner & VP: Bain & Company

(33)

• - CEO & President: Continental

Airlines (36)

• - CEO & President: PwC Consulting

(40)

“You've got to find what you love”

- Co-founded Apple at 20

• - Fired from Apple at 30

• - Founded Pixar

• (animation studio)

• - Returned to oversee Apple

growth (iPod)

LEADER PROFILE: Liu Chuanzhi

“Perseverance – stick to your goals

and keep trying all the time”

• - Lenovo Group Chairman

• - 1984: founded Legend as a

distributor of foreign PCs

• - 2004: China’s largest computer

manufacturer

• - Returning to core computer

business

LEADER PROFILES: South Africa

LEADER PROFILES: South Africa

Bonang Mohale

Greg Solomon

Patrice Motsepe

Wendy Luhabe

• Pravin Ghordan

Brian Molefe

Bridgette Radebe

Reuel Khoza

• Context: SHRM

• HR Systems

• HR Processes –

Managing People and Change

in a VUCA World

• HR and Performance Management

AGENDA

CHANGE MANAGEMENT

What is Change Management ?

Psychology of change:

– How to change attitudes and behaviour?

– Three levels of change:

1. Direct: companies act to achieve outcome

(e.g. divest non-core assets)

2. Adjust practices:

(e.g. new targets, waste reduction, innovation)

3. Culture change:

(e.g. vision, competitiveness; common to all in firm)

Sources: Kotter, Lawson

CHANGE MANAGEMENT

Conditions for changing mind-sets:

• How to change attitudes and behaviour?

• A purpose to believe in (Festinger, actions/beliefs, cognitive dissonance)

• Reinforcement systems (Skinner, conditioning, over time?)

• Skills required for change (Kolb, adult learning)

• Consistent role models (individuals and groups, across levels)

Transformation:

• On a large scale

• New ways of working

• New behaviours

• Leadership role?

• People processes as a source of competitive advantage

• Trust and commitment

Source: Kotter (2007)

Harvard Business Review p. 4

Leading Change: 8 Steps to Transforming an Organisation

• Context: SHRM

• HR Systems

• HR Processes –

Managing People and Change

in a VUCA World

• HR and Performance Management

AGENDA

• Aligning HR strategy with the strategy

of the business/organisation

• Adding value to the customer supply

chain process

• Understanding the bottom line and

key deliverables (financial

statements, economics, marketing

principles)

• Effectively using HR data and

information (capital asset pricing) in

decision making

• Stakeholder advocacy (community

and client engagement)

STRATEGIC HR BUSINESS PARTNERING

Source: The Human Resource function

contribution to human development in South

Africa, P. Abbott

‘Employee advocacy’ – bridging work and

society

• Strategy

• Organisation

• Culture

• Leadership

HIGH PERFORMANCE ORGANISATIONS

Up to 50% of senior management time is taken up with personnel matters.

Senior management spends less than 1% of their time on strategic planning.

Companies focused on issues have 16% greater profits than companies

focused on business units.

Harvard Business Review 2006

STRATEGY?

Finding the right issues and then focusing on them with all your

senior management attention is the only way forward in

business today.

Prof. Peter D Skinner Texas A&M

‘A Review of all major Business Schools in the USA’

EFFECTIVE ORGANISATIONS

Tight focus on customers and local markets

Flat structures and decentralized controls

Empowered Management and staff

A concentration on core activities

Controls that are both loose and tight

Consultative decision-making

Source: Ivarsson (2014) Best Practice in Sport and Physical Activity for Health Promotion, p.27

‘5’ Cs of Sport for Health Promotion

Source: Abbott (2013) adapted from Ulrich & Brockbank, p. 13

Roles of the HR Leader (People Advocacy)

Leadership

• Influencing

• Clear direction

• Dynamic

• Mobilise human resources

• Learning organisation (embrace change)

• Achieve measurable results

HIGH PERFORMANCE ORGANISATIONS

STRATEGIC

HUMAN

RESOURCE

MANAGEMENT

15 August 2016