The Future of HR - Jobat · The Future of HR Why, Where, What and How Allan Freed ... (recession,...
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The Future of HR Why, Where, What and How Allan Freed September 2012
Transcript of The Future of HR - Jobat · The Future of HR Why, Where, What and How Allan Freed ... (recession,...
The Future of HR
Why, Where, What and How Allan Freed September 2012
Session Objectives
Think • About challenges facing the HR profession • About how HR professionals can master
competencies to deliver value • About 2012 global HR competency study
results
Behave • Prepare improvement plans for your department, function or team, or for you personally
Have fun • Engage in constructive conversation to co-create HR going forward
Source of ideas
3
Human Resources
Leadership
What is the future of HR?
HR Value
Business Context
Stake- holders
HR Department
HR Professionals
HR Practices
HR Analytics
Individual Ability Leadership Organization
Capability
Why
Where
What
How
To Create Value, HR Needs to Evolve H
R E
volu
tion
Time
HR Administrative Utility
HR Strategy
HR Outside/In
HR Functional Expertise
What is the future of HR?
HR Value
Business Context
Stake- holders
HR Department
HR Professionals
HR Practices
HR Analytics
Individual Ability Leadership Organization
Capability
Why
Where
What
How
Fundamental Message:
Value is de4ined by the receiver more than the giver.
What is the future of HR?
HR Value
Business Context
Stake- holders
HR Department
HR Professionals
HR Practices
HR Analytics
Individual Ability Leadership Organization
Capability
Why
Where
What
How
Trends and Context
Category STEPED Example Trends HR Implications
Social • Changing lifestyle (family, urbanization, religion, well being)
Technical • Pace of change; • Access to information and
relationships
Economic • Global markets and competition • Stagnation and economic cycles
Political • Political unrest • Regulatory shifts
Environmental • Social responsibility • Build reputation
Demographic • Changing workforce (age,
education, global, expectations)
New business realities Category STEPED
Questions to ask
Social • What are health patterns (physical, emotional)? • What are family patterns (married, not married, divorced, # of children)? • What are religious trends (heritage, activity) • What is urban/rural mix and movement?
• What is life style (workday, weekends, dominant hobbies)?
• What is transportation? • What are the social problems (e.g., drugs, crime)? • Who are the hero’s or famous people from this
area (past and present)?
Technical • What are their communication mechanisms (media, television) and how independent are they? • What is level of technological maturity within the geography (internet use, computer access)? • What is their use of social media?
Economic • What is the Gross Domestic Product? Relative to others, how it is doing?
• What economic cycle are they in (recession, growth)?
• What is unemployment?
• What are leading industries? Companies? • What is economic gap of haves vs. have nots (size
of middle class)?
Political • What is their political history? • How much political stability is there? • How much regulation vs. private enterprise exists?
(what is the role of government in industry?) • How open (vs. repressive) is their government?
• What is their political heritage (democracy, socialism, parliament, king or family rule)?
• What are the political “hot topics” that exist? • What is the relationship of the military and
government? • How much corruption is there in decision making?
Environmental • What are the environmental issues that people are worried about? • How does the geography participate in global conferences and trends?
Demographic • What is the average age? • What is the birthrate?
• What is the education level? (public vs. private) • What is the income level? (income disparity)
HR Stakeholders (external view)
HR measurement from the outside/in: Stakeholders
HR Stakeholders (external view)
Investor
Line manager
Customer Community
Employee Today/tomorrow
Investors have seen financial results account for a shrinking proportion of a company’s market value
Cor
rela
tion
of e
arni
ngs
an
d st
ock
pric
e
1 0.9 0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1 0
Confidence in your future
1977
1982
1987
1992
1997
2002
Confidence in track record
2007
2011
Time
What is the future of HR?
HR Value
Business Context
Stake- holders
HR Department
HR Professionals
HR Practices
HR Analytics
Individual Ability Leadership Organization
Capability
Why
Where
What
How
What is the future of HR? Individual
COMPETENCE COMMITMENT CONTRIBUTION
Talent =
Talent means engaging heads, feet, and hearts
16"
What do we mean by organization capability?!
Individual Competence
Organizational Capability
Individual Technical Competence
Core Competence:
Functional / Technical Expertise
Social
Technical
Individual Organizational
17"
Doing organization audits
CURRENT STATE
FUTURE STATE
1 4 STRATEGY
2 5 CAPABILITY/ ORGANIZATION
3 6 ACTION
RESULT
What Organization Capabilities Might Exist? !
Five-step approach to build organization capabilities that will support lasting growth and profitability:
1. Identify the capabilities required for successful strategy execution
2. Assess where we stand vis a vis organizational (and technical) capabilities e.g., audit our current capability levels
3. Define needs for improvement 4. Align systems, practices and needs for investment or
reallocation of resources 5. Take action and monitor
What Organization Capabilities Might Exist? !
How Effective Now: 1-minimal; 5- a great deal
Most Critical 2-3 in next 3 years
How effectively do we current perform on each of the following thirteen capabilities… 1 2 3 4 5
1. Talent: We are good at managing things like intellectual capital, know-how, competencies, skills, commitment, workforce
� � � � �
2. Speed: We are good at doing things fast, with agility, adaptation, flexibility, cycle time, responsiveness
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3. Shared Mindset: We are good at managing or changing our culture, or doing, transformation, firm identity, firm equity, firm brand, shared agenda
� � � � �
4. Learning: We are good at knowledge management, sharing best practices � � � � �
5. Collaboration: We are good at teamwork, working across boundaries, doing merger integration, or sharing information
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6. Innovation: We are good at administrative, product, channel or strategic innovation
� � � � �
7. Accountability: We are good at holding people accountable with clear performance expectations and the ability to execute and implement what we promise.
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8. Leadership: We are good at building leadership depth through the company, with things like bench strength, quality of management, leadership brand
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9. Strategic Clarity: We are good at creating a shared agenda, setting strategic priorities, and having a shared point of view
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10. Efficiency: We are good at reducing costs through redesign, reengineering, or restructuring
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11. Customer Service: We are good at customer relationships with a customer-focused organization and customer intimacy
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12. Social Responsibility: We are good at being sustainable by managing our carbon footprint, philanthropy, and values.
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13. Risk: We are good at managing risk by attending to disruption, predictability, and variance
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Leader vs. leadership? !
Internal
External
Leaders Leadership
Competent Leaders Leadership Systems
Celebrity Leaders Leadership Brand
Leadership brand!
Leadership Code (Common)
Leadership Differentiators X
1. What percentage of leadership is basically the same?
2. If there are common rules for any leader, what are they?
LEADERSHIP BRAND
Leadership Code: The DNA of Effective Leadership
Count as high as you can in 45 seconds, starting from 1
HRLP © The RBL Group May 2010 Leadership Brand
24"Count again:The value of using a framework for leadership
Leadership Code: summary of key skills
Individual Organization
Long-term Strategic
Near-term Operational
Personal Proficiency
• Have a personal leadership brand • Maintain my physical resources • Develop intellectual agility • Create emotional reserves • Build social networks • Have a strong moral coce
Strategist: I…
• Have a point of view about our future • Think and act in a customer-centric view of strategy • Create strategic traction throughout my company • Communicate with strategic stories
Human Capital Developer: I …
• Empower employees • Manage careers • Create an employee brand • Map the workforce • Systematically review future talent
Talent Manager: I …
• Coach others • Communicate effectively • Develop competencies in others • Build commitment from others • Ensure contribution (am a meaning maker)
Executor: I …
• Make change happen • Follow a decision protocol • Ensure accountability • Build teams • Ensure technical proficiency
Translate firm brand into leadership brand differentiators
Firm Brand Leadership Brand
This organisation is known for… Leaders at this organisation are known for…
Wal-mart Always low prices Managing costs efficiently, getting things done on time
FedEx Absolutely, positively, doing whatever it takes
Managing logistics, meeting deadlines, solving problems quickly
Lexus Pursuit of perfection Managing quality processes (lean manufacturing and design, Six Sigma) for continuous improvement
Procter & Gamble
Brands you know and trust Developing consumer insights, precisely targeted marketing, product innovation
McKinsey CEO’s trusted adviser Leading teams that deconstruct business problems, synthesise data, and develop solutions
Boeing People working together as a global enterprise for aerospace leadership
Solving global problems, working as teams, possessing technical excellence in aerospace
Apple Innovation and design Creating new products and services that break the industry norms
PepsiCo Appealing to the younger generation Building the next generation of talent
Your Company
?? ??
What is the future of HR?
HR Value
Business Context
Stake- holders
HR Department
HR Professionals
HR Practices
HR Analytics
Individual Ability Leadership Organization
Capability
Why
Where
What
How
Transformation of HR: Redesign of HR
HR practices How can we align,
integrate, and Innovate our HR practices?
HR Department How do we organize to
deliver work?
HR Professionals: What competencies must
HR professionals demonstrate?
How to transform HR
HR’s Transformataion challenge:
Value to key stakeholders
HR analytics How can we measure and track success of
HR work
Run the HR function as if it is a business within a business.
STRATEGY: What is our vision, mission, and value proposition?
STRUCTURE: How do we organize resources to deliver our mission? • Transaction work
-‐ Service centers/e-‐HR/outsourcing • Transformation work
-‐ Centers of expertise -‐ Embedded HR -‐ Operational HR -‐ Corporate HR
HR department
Aligning business and HR Strategy
HR strategy for each business
One HR strategy for entire business
HR strategy for each business and overall corporate HR strategy
Human Resources
Business strategy
decentralized
centralized
centralized decentralized
Align our HR organization
Line manager/ client
Embedded HR: Generalist
Partner Relationship manager
Centers of expertise
people
performance
information
work
Project team
Corporate
Employees HR transactions
Operational HR
HR department
TRANSACTION • Better, faster, cheaper • Rationalize: remove redundancies • Standardize: on core processes • Optimize: reduce costs and upgrade legacy systems • Globalize: one standard worldwide
TRANSFORMATION • Accessibility/access • Customization • Flexibility • Simplicity • Connectivity • Adaptability
HR work: first transaction, then transformation
HR Department: Split into 2 parts
Corporate A small dedicated group of senior HR executives who focus on:
• Top management: paying attention to unique HR requirements of top management • Corporate initiatives: crafting HR policies that affect the overall organization and shape CEO’s agenda • Integration and oversight: leading the HR function by managing careers and disputes • Corporate brand: representing the firm to key stakeholders with a consistent culture face and identity • Develop HR professionals
HR department: Corporate
Centers of Expertise Specialists who have unique insights and great depth in HR practice areas around people (staffing, training), performance (rewards), communication, and organization (organization development, labor) • Create and control a menu of choices • Provide specialist expertise on targeted problems • Push to businesses corporate wide challenges • Be pulled into business to provide specialist expertise on targeted problems • Share learning from one business to another • Connect with external thought leaders
HR department: Centers of Expertise
Embedded HR HR business partners who work on the business Management team and participate in business discussions • Perform talent and organization diagnosis to align with and drive strategy • Be a strategic architect in shaping strategy • Coach the business leader and other team members • Help make strategy and change happen • Measure and track quality of HR work in the business
HR department: Embedded HR
Shared Services Technically focused HR professionals who process HR administrative requirements with high efficiency • Build administrative systems to process information • Ensure responsive, cost efficient, consistent, and accurate services • Leverage technology to deliver services • Share information to other members of the HR community
HR department: Shared services
HR Practices
Performance
Work
People Communication
• Buy ● Bounce • Build ● Bound • Borrow ● Bind
• Set standards • Ensure consequences
-‐ 4inancial -‐ non 4inancial
• Do feedback
Build communication plan • Top down • Bottom up • Inside out • Outside in • Side to side
• Restructure organization • Reengineer work process • Manage teams • Architect physical setting
HR practices: How can I align, integrate, and Innovate our HR practices?
Align Integrate Innovate
People
Performance
Information
Work
HR practices How can I align, integrate, and Innovate our HR practices?
2012 HR Competencies: Six Primary Domains
2012 HR Competencies: Domains and Sub-Factors
Strategic Positioner • Interpreting global business context • Decoding customer expectations • Co-crafting a strategic agenda
Credible Activist • Earning trust through results • Influencing and relating to others • Improving through self-awareness • Shaping the HR profession
Capability Builder • Capitalizing organizational capability • Aligning strategy, culture, practices, and
behavior • Creating a meaningful work environment
Change Champion • Initiating change • Sustaining change
Human Resource Innovator & Integrator • Optimizing human capital through
workforce planning and analytics • Developing talent • Shaping organization and communication
practices • Driving performance • Building leadership brand
Technology Proponent • Improving utility of HR operations • Connecting people through technology • Leveraging social media tools
41!These Competencies Help HR Professionals Balance Competing Demands
HR Professional
Business
People
Outside
In
Event
Sustain-ability
Past
Future
Individual
Organizational
Strategic
Administrative
Credible Activist
Capability Builder HR
Innovator & Integrator
Change Champion
Technology Proponent
Strategic Positioner
What is the future of HR?
HR Value
Business Context
Stake- holders
HR Department
HR Professionals
HR Practices
HR Analytics
Individual Ability Leadership Organization
Capability
Why
Where
What
How
How Effective Now:
1-minimal; 5- a great deal
Most Critical 2-3 in next 3 years
How effectively does our HR work account for the following? (or How effectively do we currently perform on each of the following factors for the future of HR?) 1 2 3 4 5
HR meta message
1. Outside/in: We are good at connecting our HR work with customers, investors, and communities outside our organization. � � �� �
HR’s relationship to business
2. Business context: We are good at understanding the social, technological, economic, political, environmental, and demographic context of our business � � �� �
3. Stakeholders: We are good at defining the value for key stakeholders created by our HR work � � �� �
HR’s targets or outcomes
4. Talent: We are good at improving the productivity of our employees through their competence, commitment (engagement), and contribution (meaning) � � �� �
5. Organization: We are good at identifying and investing in organization capabilities required for our future success � � �� �
6. Leadership: We are good at building leadership depth through the company, with things like bench strength, quality of management, leadership brand � � �� �
Domains for HR investments
7. Restructure HR Departments: We are good at building HR departments so that they turn knowledge into client productivity, with clear roles and responsibilities � � �� �
8. Reengineer HR Practices: We are good at aligning, integrating, and innovating our HR practices in people, performance, communication, and work � � �� �
9. Upgrade HR Professionals: We are good at ensuring that HR professionals have the right competencies to deliver value and build their HR career � � �� �
10. Track or measure HR progress. We are good at creating HR analytics focused on the right issues � � �� �
HR of the Future: Our readiness? !
