SABPP - Technology - QBIT 2013

PEOPLE MANAGEMENT AND TECHNOLOGY:

Two sides of the same coin in the modern

workplace?

Marius Meyer

15 March 2013

marius@sabpp.co.za

@SABPP1

IBM CEO Study 2012:

Factors impacting organisations

1 Technology factors (71%) 2 People skills (69%) 3 Market factors (68%) 4 Macro-economic factors 5 Regulatory concerns 6 Globalisation 7 Socio-economic factors 8 Environmental issues 9 Geopolitical factors

IBM CEO Study 2012

Technology revolution

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

HR Talent Management

“Quite possibly the biggest challenge that needs to occur in

HR has to do with talent management – not elsewhere in

organisations, but how talent management in HR is a case of

the shoemaker’s children lacking shoes. Our results suggest

that HR often doesn’t have the right talent; all too often it has

talent that is inferior to the talent in other parts of the

organization.”

Ed Lawler III & John Boudreau (2009)

Achieving Excellence in Human Resources Management, Stanford University Press

SOUTH AFRICAN HR COMPETENCY MODEL

STRATEGY

TALENT MANAGEMENT

HR GOVERNANCE, RISK, COMPLIANCE

ANALYTICS & MEASUREMENT

HR SERVICE DELIVERY

5 HR

CAPABILITIES

LEADERSHIP & PERSONAL CREDIBILITY

ORGANISATIONAL CAPABILITY

SOLUTION CREATION & IMPLEMENTATION

INTERPERSONAL & COMMUNICATION

CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY

5 C

OR

E

CO

MP

ET

EN

CIE

S

HR & BUSINESS KNOWLEDGE

DUTY TO SOCIETY

ET

HIC

S

PR

OF

ES

SIO

NA

LIS

M

4

PILLARS

Comfort zone challenged

Use of workforce

analytics remains limited

IBM: Working beyond Borders

0% 10% 20% 30% 40% 50% 60%

Developing future leaders

Developing strategy linked to business strategy

Allocating the workforce across the organisation

Developing workforce skills and capabilities

Sourcing, recruiting and onboarding individuals fromoutside the organisation

Retaining valued talent within the organisation

Evaluating workforce performance

Enhancing workforce productivity

Measuring collaboration and knowledge sharing acrossthe organisation

29%

28%

35%

30%

40%

38%

40%

39%

14%

26%

25%

23%

22%

20%

19%

15%

14%

5%

Can identifyhistoricaltrends andpatterns

Can developscenarios andpredict futureoutcomes

Use of HRIS

What is the business problem?

“A business running without accurate data is

running blind.”

Ash Mahmud, Head of CRM: Groupon

What is the HR problem?

An HR function running without accurate data

is running blind.

Effectiveness of talent management

system

HR facing social media

L&D Benchmarks (ASTD/SABPP)

BENCHMARK USA RSA CHANGE

Average % payroll 2,24% 3,94% + 0,83

Hours /employee 36 40 - 12

Spend/employee $1068 R 6898 +R 1700

Employees/trainer 253 157 +19

% companies e-learning

31% 43% + 10%

% outsourced 22% 62% +10%

To order the full report contact hrri@sabpp.co.za

Management system standard: purpose and

benefits

A (business) management system standard should be a means to:

achieve business objectives

increase understanding of current operations and the likely impact of change

communicate knowledge

demonstrate compliance (with the requirements of King III the Combined code, Sarbanes-Oxley, sector-specific and international standards etc.)

Means to establish 'best (good) practice'

Means to ensure consistency

Establish and set priorities

Instigate organisational change

What is a management system?

One definition of management is 'the guidance and control of

action', and a system is defined as a 'set of components

interconnected for a purpose'.

A management system is: 'A set of components, interconnected

for the guidance and control of action'.

This suggests that the 'interconnection' has been planned for a

reason, and that the purpose would not be achieved without the

'interconnection'. In other words, the separate components

would not independently achieve the same results.

Integrated management system

IT skills for HR

Operational Management Consistency in the

Management of People

One of the toughest things to be is consistent

Value of technology

Revenue per full-time employee

1%

24%

16%

12%

2%

23%

4%

3%

15%

0% 5% 10% 15% 20% 25% 30%

R0

> R100 000

R100 000 to R1 million

R1 million to R 10 million

R10 million+

Don’t measure/Don’t know

It’s confidential

?

Not applicable

Cost of labour as a % of revenue

9%

7%

12%

7%

9%

14%

11%

25%

4%

2%

0% 5% 10% 15% 20% 25% 30%

> 10%

11 - 20%

21 - 30%

31 - 40%

41 - 50%

51 - 60%

61 - 70%

Don’t know/Not applicable

Not done

Too confidential

LTO rate

35%

21%

44%

0% 10% 20% 30% 40% 50%

Don't know

Don't measure

Indicate LTO rate:

Absenteeism rate

34%

31%

35%

29% 30% 31% 32% 33% 34% 35% 36%

Don't know

Don't measure

Indicate absenteeism rate

HR manager’s response to

technology?

1. Spending on human capital a. Total amount spent on employees (salaries, benefits, taxes) b. Total amount spent in support of employees c. Total amount spent in lieu of employees (contractors, etcetera) d. Total amount invested in training and development e. Total headcount and total FTE (full-time equivalents) at the end of the period 2. Ability to retain talent a. Voluntary and total turnover b. Broken down by subset of EEO-1 job types c. Industry standard formula of (# of terminations during the period) / (average active headcount during the period) 3. Leadership depth a. Percentage of defined positions that have an identified successor b. Percentage of open defined positions filled internally during the period

The basic metrics they propose as

essential for investors to know are:

SHRM (April 2012)

4. Leadership quality a. Index of relevant questions from employee survey b. Information on the response rate and methodology/tool 5. Employee engagement a. Index of relevant questions from employee survey 287 b. Information on the response rate and methodology/tool 6. Human capital discussion & analysis (HD&A) a. Narrative to provide context and discussion of the reported metrics b. Disclosure of any material risks or any other material information related to human capital Note: Organisations may wish to include breakdowns of these metrics by unit or region; it simply depends on what makes sense to the organisation and its investors.

The basic metrics they propose as

essential for investors to know are:

SHRM (April 2012)

We are changing with technology

10 V’s of HR Technology Management

1. Vision

2. Value

3. Variables

4. Variance

5. Variety

6. Validity

7. Verification

8. Velocity

9. Vendors

10. Vulnerability - risks

Risk + readiness

SABPP HR System Standards Model

BUSINESS STRATEGY – HR BUSINESS ALIGNMENT

Strategic HRM

Talent Management

HR Risk Management

FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN

HR VALUE & DELIVERY PLATFORM

Work- force

planning Learning

Perfor- mance

Reward Well- ness

ERM OD

HR Service Delivery

HR Technology (HRIS)

Pre- pare

Im- ple-

ment

Review Improve MEASURING HR SUCCESS HR Audit: Standards & Metrics

H R

C O

M P

E T E N C

I E S

SABPP HR Standards & Metrics

Roadmap

PHASE 1:

Manage- ment

System Standard

PHASE 2:

HR Functional standards

PHASE 3:

HR Metrics

PHASE 4:

Integrated Reporting

PHASE 5:

CPD & Support Tools

PHASE 6:

HR integrated in

King IV

2012 2013 2017

HR Standards Roll-out

Development (21-22 May)

Consultation (June-July)

Release (20-22 Aug)

Standards-writing

(100 top HR professionals)

Standards inputs

(100 top HR specialists +

1000 professionals)

Standards finalisation

(100 HR Directors

sign-off) HR Standards

conference

The need for consistency and quality

COMPANY AND

EMPLOYEE DATA

INFORMATION

TECHNOLOGY SYSTEMS

WHAT do we have?

KNOWLEDGE

STANDARDS BENCHMARKING

INTELLIGENCE Business; Market; HR;

Industry; Country; Region; World

ANALTYICS AND METRICS

WHY do we have it? WHAT else is needed?

DECISION-MAKING • Strategy

• Interventions

WHAT can we do with it?

I MPLEMENTATION

HOW, WHO, WHEN, WHERE?

EVALUATION

Conclusion

HR standards are needed to improve the

consistency and quality of people

management. HR managers should leverage

technology for improved HR practice and

business decision-making.

FOLLOW US ON TWITTER

@sabpp1

Let us build our competence in HR

Technology!

professional@sabpp.co.za (Professional Registration)

sithembele@sabpp.co.za (Professional Services)

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

New office: 8 Sherborne Str, Parktown

Tel: 011 482-8595 Fax: 011 482-4830

Cel: 082 859 3593 (Marius Meyer)

New office