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HR Department needs to play a more significant role inmanagement and development of people
1
In the last twenty years, companies have initiated turnaround efforts. Through downsizing,
consolidations, and restructurings, these organizations have reduced costs and shed unprofitable
businesses, while quality and reengineering efforts removed inefficient steps of work processes. All
these efforts helped turn-around businesses, making them sleeker, swifter and more streamlined.
Turnaround, however is not transformation.
Transformation changes the fundamental image of the business, as seen by customers and
employees.Transformation focuses on creating mindshare more than market
share.Transformation results when customers and employees move from fundamentally different
images of a firm to similar issues.
David Olson Ulrich (Dave Ulrich),
Ross School of Business Professor – University of Michigan
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
What’s Next?HR Business Partner Example
Conclusion
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Strategic HR role focuses on aligning HR strategies and policieswith business strategy
5
Takeaway Box
! The deliverable is strategy execution
– HR practices help accomplish business
objectives! The metaphor is the “strategic partner”
–
HR professionals participate in the
process of defining business strategy
– They ask questions that move strategy to
action – They design HR practices that align with
business strategy
! The primary actions is translating business
strategies into HR priorities
– HR professionals identify HR practicesthat make the strategy happen
Rationale For Strategic Partner
Translating business strategies into HR practices helps abusiness in three ways:
• The time from theconception to the execution
of a strategy is shortened
Adopt ToChange
• Customer service strategieshave been translated into
specific policies andpractices
Better MeetCustomer
Demands
• Business is more effective inexecuting the strategy
AchieveFinancial
Performance
By fulfilling this role, HR professionals increase the capacityof a business to execute its strategies!
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic Partner
SUPPORTING SLIDE
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As a caretaker of corporate infrastructure, HR professionals ensureorganizational processes are designed and delivered efficiently
6
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Takeaway Box
! The deliverable is administrative efficiency
– HR professionals ensure efficiency in HR
processes and… –
…hire, train, and reward managers who
increase productivity and reduce waste
! The metaphor is the “administrative expert”
– HR professionals ferret out unnecessary
costs, improve efficiency and… – …constantly find new ways to do things
better
! The primary actions is undertaking
activities leading to continual reengineering
– HR administrative services are sharedacross company divisions while…
– …maintaining service quality for their
users
Rationale For Administrative Expert
HR professionals design and deliver efficient HR processes,managing the flow of employees through the organization:
While this role has been down-played, its successfulaccomplishment continues to add value to a business !
Administrative Expert
Staffing
Training
Appraising
Rewarding
Promoting
Retaining
SUPPORTING SLIDE
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The employee contribution role encompasses HR professionalsinvolvement in the day-to-day concerns and needs of employees
7
Rationale For Employee Champion
HR professionals become the employees’ champions bylinking employee contributions to the organization’s success:
With active employee champions who understandemployee’s needs and ensure that those needs are met ,
overall employee contribution goes up!
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996; Maslow’s Hierarchy of Needs
Takeaway Box
! The deliverables are increased employee
commitment and competence
– HR professionals strive to understandand fulfill employees’ needs
!
The metaphor is the “employee champion”
– HR champions personally spend time
with employees and…
–
…train and encourage managers in otherdepartments to do the same
! The primary actions is providing employees
with resources that meet their demands
– HR professionals creatively seek and
implement the means for employees… –
…to voice opinions and feel ownership in
the business
Employee Champion
Sel
f-actualization
Esteem
Love/Belonging
Safety
Psychological
SUPPORTING SLIDE
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HR professionals managing transformation become both culturalguardians and cultural catalysts
8
Change Agent
Rationale For Change Agent
Change refer to the ability of an organization to improve thedesign and implementation of initiative: Takeaway Box
! The deliverables is capacity for change
– HR executives help employees let go of
old and adapt to a new culture! The metaphor is the “change agent”
–
HR professionals need to facilitate a
dialogue about values…
– …as they identify new behaviors that will
keep a firm competitive over time! The primary actions are identifying and
framing problems, building relationships of
trust, solving problems, and creating (and
fulfilling) action plans
– HR professionals who are change agentshelp make change happen
As change agents, HR executives help organizationsidentify a process for managing change!
Levels of
evolution
Time
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
SUPPORTING SLIDE
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Most companies scored higher in the operational quadrants andlower in the strategic quadrants
9
HR Roles in Building a Competitive OrganizationFocus vs. Activities
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
FUTURE/STRATEGIC
FOCUS
DAY-TO-DAY/OPERATIONAL
FOCUS
PEOPLEPROCESSES
Strategic Partner Change Agent
Administrative Expert Employee Champion
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HR roles move from a focus on operational to strategic roles, whereemployee contribution decreased over the past two decades
10
HR Roles in Building a Competitive OrganizationFocus vs. Activities
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
FUTURE/STRATEGIC
FOCUS
DAY-TO-DAY/OPERATIONAL
FOCUS
PEOPLEPROCESSES
Strategic Partner Change Agent
Administrative Expert Employee Champion
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Responsibility for delivering the four roles is shared, as indicatedby an allocation of points
11
HR Roles in Building a Competitive OrganizationShared Responsibility
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
FUTURE/STRATEGIC
FOCUS
DAY-TO-DAY/OPERATIONAL
FOCUS
PEOPLEPROCESSES
Field HR
5
Line Managers
5
HR
3
Line Managers
4
External Consultant
3
HR2
Line Managers6
Employees2
Corporate HR5
Outsource3
Information Technology2
Strategic Partner Change Agent
Administrative Expert Employee Champion
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Strategic Partner
Employee Champion
Change Agent
HR professionals can both represent employee needs andimplement management agendas
12
Takeaway Box
! As strategic partners with managers,
– HR professionals partner with managers
and are seen as part of management –
This may alienate employees from both
HR and management
– The employees felt betrayed and rated
that HR function as not meeting their
needs! As employee champions with managers
and employees,
–
HR professionals ensure that employees
needs are voiced to management
– This may alienate the HR function from
management – Management see HR people as
insensitive to business realities
Strategic Partner versus Employee Champion
HR professionals should balance the tension inherent inbeing a strategic partner on the one hand and an employee
champion on the other:
HR professional must achieve a balance between the needsof potentially competing stakeholders to gain their trust!
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic Partner vs. Employee Champion
Administrative Expert
SUPPORTING SLIDE
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HR professionals dealing with cultural change need to be bothcultural guardians of the past and architects of the new cultures
13
Takeaway Box
! Businesses must balance stability and
change
! Businesses must balance the past and thefuture
!
Businesses must balance the benefits of
free agency and control
! Businesses must balance efficiency and
innovation ! When working to create new cultures, HR
professionals
–
Should simultaneously consider the
impact of the new culture on
administrative process and…
–
…recognize the hold that the old cultureretains over both employees and
company practices
Tension between HR professionals roles as change agentsand as administrative experts yields a number of paradoxes
that must be managed:
HR professional must balance the need for change,innovation, and transformation with the need for
continuity, discipline, and stability !
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Change Agent vs. Administrative Expert
Strategic Partner Change Agent
Administrative Expert Employee Champion
Change Agent versus Administrative Expert
SUPPORTING SLIDE
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
What’s Next?HR Business Partner Example
Conclusion
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HR professionals work with line managers to institute & manage aprocess that creates an organization to meet business requirements
15
Takeaway Box
! Avoid strategic plans on top shelf (SPOTS)
– Turn strategic statements into a set of
organizational actions! Create a balanced scorecard
–
Accountable for all segments of the BSC – Provide intellectual leadership on the
employee dimension
! Align HR plans to business plans – Integrate business practices into the
business strategy
! Watch out quick fixes
– Avoid the lure of the quick fix (two traps:
benchmarking and frou-frou)!
Create a capability focus within the firm – Identify and improve capabilities…
– …both to implement strategy and to
leverage new products
By overcoming those five challenges, HR professionalsbecome strategic partners!
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic Partner
Becoming a Strategic Partner
HR professionals were given the task of answering thequestion: How do we create an organization to accomplish
business objectives?
Avoid strategic plans
on top shelf
Create a balanced
scorecard
Align HR plans
to business plans
Watch outquick fixes
Create a capability
focus within the firm
1 2
3
4
5
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Organizational diagnosis is the systematic assessment andalignment of organizational practices with business goals
16
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic Partner
Organizational Diagnosis
Organizational diagnosis allowed HR professionals to audit organizations’ strengths and weaknesses and then to work to improveareas of weakness uncovered:
Better achievement of
strategic goals
Define an organizational
architecture
Organizational systemsand processes
Create an assessment
process
Provide leadership for
improvement of practices
Set priorities4
3
2
1
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Organizational architecture specifies the systems that constituteorganizations
17
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic Partner
Organizational Architecture Based on the work of Nadler, Galbraith, and McKinsey
The ability to design, integrate, and operate those systems is the essence of effective organizations:
Strategic Intent:
What Are We
Trying to Accomplish?
Shared mindset: the common identityand culture within a business
Governance: organization’s reportingrelationships, decision-making process,
policies, and communications processes
Consequence: performancemanagement standards
Leadership: how firms shape,communicate, and commit to direction
Competence: knowledge, skills, andabilities that exist among and across
employees and groups of employees
Work process/capacity for change:how organizations improve processes,
manage change, and learn
Define an organizational architecture1
SUPPORTING SLIDE
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Factors identified in the architecture become assessment withwhich to probe the organization’s strengths and weaknesses
18
Takeaway Box
! Who will collect the organizational audit
data?
– Line managers, HR professionals, andthird party
!
Who will provide the data? – Employees, suppliers & customers, and
best practices of industry competitors
! What type of data will be collected? – May be both perceptual and evidential
! How will the data be turned into action?
–
As common themes are identified, …
– …as managers with decision-making
responsibility take ownership, …
–
… and as alternative actions areproposed
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic Partner
Assessment: Organizational-Capability Architecture
Create an assessment process 2
HR professionals are helping systematically to turn strategy into organizational action!
Factor QuestionRating
(1-10)Best Practice
Shared
Mindset
Competence
Consequence
Governance
Work Process/
Capacity for
Change
Leadership
!
Six Factors are listed in the firstcolumn...
! ...then stated as Questions in the
second column
–
posed to emphasize the extent to
which the factor will help accomplish
the firm’s strategic intent
! The Rating column employs a simple
metric for use in evaluation
! The Best Practice column identifies
practices for improvement
SUPPORTING SLIDE
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Improvement occurs when HR professionals generate alternativeactions and practices for each of the six organizational factors
19
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic Partner
Architecture for Organization Capability: Best Practices
HR professionals should take the lead in proposing, creating, and debating best practices in culture change, competence,consequence, governance, work processes, and leadership:
Provide leadership in improvement practices 3
Strategic Intent:
What Are We Trying to Accomplish?
! Competence Pillar – Competence Audit
– Competence Enhancement:Staffing (Buy), Development
and Learning (Build)
! Governance Pillar – Organization Design
– Communication
– Engaging Employees
(participation, involvement,empowerment)
– Managing Policies (safety,
health, labor)
! Consequence PillarBuilding Performance
Management System – What are we trying to
accomplish? –
How should we measure it? – How can we tie rewards to
measures?
! Work-Process/Capacity-for-Change Pillar
– Reengineer Process – Manage Change
–
Increase Learning Capability
SUPPORTING SLIDE
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HR professionals should able to prioritize the HR practices underconsideration and to determine which they should invest in
20
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic Partner
Setting Priorities for HR Initiatives
Set priorities4
HIGH
Takeaway Box
! The first criteria is impact , which combines
the following qualities:
– Alignment : the extent to which thepractices will accomplish strategy
–
Integration: the extent to which thepractices integrate and affect each other
– Customer focus: the extent to which the
practices influences external customers! The second criteria is implementability ,
which combines these qualities:
–
Resources: the extent to which resources
exist to accomplish a practice
– Time: the extent to which management
attention can be focus on the practice
LOW
IMPACTWill it add valueto customers?
Is it aligned with
strategy?Is it integrated
with other
initiatives?
DIFFICULT EASY
IMPLEMENTABILITY
Can it be accomplished within reasonable time frame?
Are resources available to do the work?
Setting priorities is focusing on the most important, of whatmay be many critical issues:
SUPPORTING SLIDE
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In the mid-1980s, the Engcon*) faced a major downturn, movingfrom > USD 250 million in profit to > USD 500 million in losses
21
Takeaway Box
! BOD wanted to know whether the firm had
the right organization to implement and
sustain its strategy! Then the executive committee asked the
Senior VP of HR to determined thestrengths and weaknesses of the
organization
! He led this effort by creating an advisoryteam of senior managers, which in turn
created an assessment process using
inputs from employees, customers, and
suppliers
! The resulting recommendation were given
to the board, and organizational changeswere made and implemented
Strategic PartnerEXAMPLE
! BOD asked the CEO to assess the firm strategy,
especially its global focus and mix of products,
services and customers! BOD asked the CEO to determine whether the
firm had the right technology and system in placeto support and sustain its strategy
! Following the technology audit, systems were
upgraded
*) Engcon is a global engineering construction firm
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
What’s Next?HR Business Partner Example
Conclusion
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HR professionals can add enormous value in reengineering eitherbusiness or HR processes
23
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Administrative Expert
Administrative Expert at Two Levels
Takeaway Box
! Two phases are common to any
reengineering effort
– Phase 1, improving processes –
Phase 2, rethinking value creation
!
Phase 1 focuses on identifying ineffective processes and…
! …devising alternative methods of delivering
services! Phase 2 goes beyond simplifying and
improving processes to…
! …rethinking the structures that enable work
to get done
! HR professionals should recognize and
respond appropriately to any reengineeringeffort
Reengineering of
business process
Apply expertise to
HR processes
As organizationsidentify and improve
core processes,HR professionals may
actively serve on theimprovement team
working toward greatersimplicity, efficiency,and effectiveness
HR professionalsshould demonstrate
their ability to deliverHR services
efficiently byreengineering their
own processes asneeded
HR professionals work as administrative experts at twolevels:
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Value creation goes beyond reengineering HR processes toreframing and rethinking the methods of accomplishing HR work
24
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Administrative Expert
Implement,
roll out,market
Measure
business impact Define the
target processes
Develop
“as is”models
Challenge
underlyingassumptions
Develop
“should be”models
Steps in HR reengineering
Takeaway Box
! Underlying all these efforts is a relatively
simple goal:
– Stopping some HR activities and… –
…simplifying others, most often through
investments in technology! Range of activities involved in HR process
reengineering
–
Among them streamlining, simplification,and redesign
! HR professionals participating in these
efforts apply principles of process
reengineering
! Various tools become foundation skills for
HR professionals working toward HRprocess reengineering
Phase 1 applies business reengineering principles toimproving HR processes:
Improving Processes 1
SUPPORTING SLIDE
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The dominant paradigm for organizing HR work has traditionallybeen centralization versus decentralization
25
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Administrative Expert
(De)Centralization Quandary
Takeaway Box
! The centralize/decentralize debate will
never be satisfactory resolved
– Because it asks the wrong question and…
–
…focus on what goes on inside thefunction…
– …more than who uses the services of the
function! The debate results in frequent changes in
allocation of authority
–
Employees become cynical about how
the HR work is really done
– The debate puts attention on power and
authority rather on service
Power generally concentrates either at corporate or in thefield unit:
Rethinking HR Value Creation – Framework 1: Avoid the (De)Centralization Quandary 2
HR professionals need to avoid the debate by rethinking andreframing the basis of their roles within a service entity!
HIGH
LOW
DEGREE OFINTEGRATION
(commonality,
similar focus)
LOW HIGHDEGREE OF
DIFFERENTIATION
(different foci)
Decentralized
HR Activities/
Field HR Units
Centralized
HR Activities/Corporate Focus
DEGREE OF AUTHORITY/
POWER
SUPPORTING SLIDE
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Value creation begins not with what happens inside a group, butwith what the group’s user or customers receives from it
26
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Administrative Expert
Delivery Mechanism for Creating Value
Takeaway Box
! Corporate: policy-level HR work, focused
on long-term strategic issues
! Business Unit : HR work that aligned withthe strategy of the particular business
!
Broker : HR work that could be outsourcedto a third party
! Service Center : Routine, standardized, and
administrative HR work! Centers of Expertise: HR work that required
technical depth and expertise and could be
contracted to the businesses
! Integrated Solutions: HR work that could be
woven together with from other groups and
delivered to businesses! Value creation occurs when the appropriate
mix of all delivery mechanisms is applied
Starting with “What value can my work create?” shifts focusfrom what is done to what is delivered:
Rethinking HR Value Creation – Framework 2: Define a value-creation framework 2
HR professionals must learn to create value, not as they perceive it, but as clients perceive it !
HIGH
LOW
DEGREE OFINTEGRATION
(commonality,
similar focus)
LOW HIGHDEGREE OF
DIFFERENTIATION
(different foci)
Business Unit
Focus
Corporate
Staff
Center of
Expertise
Integrated
Solutions
Service
Center
Broker of
Services
VALUE
CREATION
SUPPORTING SLIDE
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Focus of value-creation logic is horizontal not vertical, process notfunction, and teamwork not individual
27
Administrative ExpertRethinking HR Value Creation – Framework 3: Define a value-creation process 2
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Shared SericesProcessCustomer Interface
Customer Requirements
Logic/Flow in a Shared Service Organization
Line
Manager
HR deliverableor guarantee
What does HR do for
the business?
These steps make evident the importance of the customer and demonstrate that resources need to flow from the shared serviceorganization to the customer:
Strategic Partner
(HR Generalists in
business units)
Account manager
How does HR interface with
the business?
Channels of Delivery
!
HR professionals! Outsourcing
! Line managers
! Information technology
How does HR get it works
done?
How does HR create shared
service to leverage work?
Service
Centers
Center of
Expertise
Policy and
AdministrativeExperts
Technical
Experts
! Involve the customer in defining
deliverables! Help the customer see the
importance of strategic HRM and
the role of HR strategy
! Select the right HR business
professional! Be skilled at organizational diagnosis
! Define and use multiple channels of
delivery
! Share information between customerand shared service and shared service
and customer
! Remove boundaries within the HR
function
! Clarify multiple roles within the sharedservice organization
! Co-locate members of the shared
service organization! Encourage and teach teamwork
! Get consolidated over as quickly aspossible
! Define measure of shared-service
success
K E Y S U
C C E S S
F A C T
O R S
SUPPORTING SLIDE
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Shared service organizations implementation must consider somepotential pitfalls and things to watch out for
28
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Administrative Expert
Power ShiftsPower shifts from the corporate office tothe field, and HR business professionals
gain influence in the organization
DepersonalizationIn lieu of seeing and knowing the HR professional who
serves, employees may find their needs are being met
through a combination of IT and telephone instructions
Shared Service Organizations
AccountabilityThe shared service organization has more,not less, accountability for HR professionals
working to deliver value to a business
Shared MindsetThe failure to achieve a sharedmindset across the organization’s
different functions and roles
Shadow StaffLine managers employ their ownadministrative assistants or turn to
external consultants
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J&J discovered that much of the SG&A*) costs could be traced tobureaucratic control, duplication, and inefficient HR processes
29
Takeaway Box
! They also worked to redefine the allocation
of HR professionals’ time
! Formerly HR professionals allocated theirtime to corporate or to business units
!
Under the new system they allocated theirtime to service-center and contracted
activities
! HR reengineering success at J&J weremeasured for both
– Efficiency (reduced costs, improved
productivity) and
– Service (improving customer perception
of HR services)
EXAMPLE Administrative Expert
*) SG&A stands for Sales, General, and Administrative
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
! J&J corporate executive created and
implemented the center of expertise concepts, inwhich HR technical resources within a businessunit were combined
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
What’s Next?HR Business Partner Example
Conclusion
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Overwhelmedloss, failure
Underutilizedapathy, alienation
HR professionals play a critical role in developing the employee-firm relationship
31
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Employee Champion
Why Some Adolescents Get Depressed
Takeaway Box
! HR professionals should find ways to
resolve the resource/demand imbalance
! When demands and resources areappropriately balance, employee are able
to contribute – They can commit themselves to
improvement and…
–
…can be competent enough to make theright improvements
! HR professionals should be the observers,
champions and sponsors of balanced
resources and demand
– For both themselves and for the clients
and employees they serve
Employees feel that the demands made on them exceed theresources made available to them:
HR professionals are business partners when they ensurethat employee contribution remains high!
HIGH
LOW
Perceived
Demands
(D)
LOW HIGHPerceived Resources
(R)
B
A
L
NC
E
A
Depression occurs when D>R or R>D
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The demand/resource and employee contribution challenge hasthree possible solutions
32
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Employee Champion
Resolving the Demand/Resource Challenge
Reduce DemandsHelp employees find ways to do less and thus
remain in balance with their current resources
! Set priorities
! Focus
! Reengineer
Increase ResourcesHelp employees find new resources
that enable them to accomplish theirwork
!
Control! Commitment
! Challenging work
! Collaboration/teamwork
! Culture of fun in work setting
! Compensation: shared gains
! Communication : never too much
! Concern for individuals and due
process
! Computers and technology
! Competence: training anddevelopment
Turn Demands into ResourcesHelp employees learn to transform demands
into resources
! Exit interviews
! New manager assimilation
! Consider the impact of company policies onextended employee personal relationships
!
Involve employee in key decisions! Manage redeployment
3
2
1
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Boeing 777 air frame was created under exceptionally difficultdemands
33
Takeaway Box
! HR Leaders managed more than two
hundred employees in the team that
participated in the design, engineering,manufacture, and assembly of Boeing 777
!
In situations of high demand, whereanswers and solutions are not readily
available, the teams were used as
resources to more rapidly resolve issuesthan individuals.
! HR Leaders also facilitated regular meeting
for other leaders in order to share a clear
vision
! They passionately communicated the
agenda and intent to the teams
EXAMPLE
! It had to be completed (from design to delivery) in
less time than previous models had been
! It had to be produced at less cost and be fuelefficient beyond any aircraft
!
It had to be meet very high customer performancerequirements; and
! It had to please the pilots who would fly it
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Employee Champion
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
HR Business Partner ExampleWhat’s Next?
Conclusion
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The necessary range of a firm’s responses to change must expandas the pace of change outside a firm increases
35
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Change Agent
General Responses to Change
Takeaway Box
! HR professionals make sure
– Initiatives are defined, developed, and
delivered in a timely manner –
Process are stopped, started, and
simplified – Fundamental values are debated and
appropriately adopted to changing
business condition! Intellectual commitment to change is easy
to make but…
! … practical efforts involved in change are
difficult
! Successful HR change agents
–
replace resistance with resolve,… – …planning with results, and…
– fear and change with excitement about
its possibilities
Three general response types may be identified:
HR professionals as change agents build a firm’s capacityto handle all three types of change!
Responses tochange
Initiative ChangesFocus on implementing new
programs, projects, or procedures
Process ChangesFocus on the ways
in which work getsdone
Cultural ChangesOccur within a firm when the
fundamental ways of doing
business are reconceptualized
3
2
1
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Understanding why changes fail may be a first step in overcomingfailure
36
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Change Agent
Takeaway Box
! While many people and organizations
recognize the need for change…
! …few are able to sustain successfulchange efforts
!
HR professionals can be champions inmaking change happen
! For initiative and process changes
–
HR professionals can create a changemodel that…
– …can be applied to any change initiative
to reduce the time necessary for…
– …and increase the quality of the change
! For cultural change
–
HR professionals can create thearchitecture and actions that…
– …lead to new cultures
Top ten reasons why changes don’t produce change:
HR professionals must turn desire into competence byrecognizing the challenges and by building plans to
overcome those challenges!
Why Changes Don’t Produce Change
1. Not tied to strategy
2. Seen as a fad or quick fix
3. Short-term perspective
4.
Political realities undermine change5. Grandiose expectations vs. simple
successes
6. Inflexible change designs
7. Lack of leadership about change
8. Lack of measurable, tangible results
9. Afraid of the unknown
10. Unable to mobilize commitment to
sustain change
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Generally only about 25 percent of change initiatives are judged tobe successful
37
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Change Agent
Steps in Building Capability for Change
Initiative/Process: Building Capacity for Change 1
Identify Key Success Factors
for Building Capability
for Change
Identify the Improvement
Activities for Each
Success Factor
See the Seven Key Factors as an Iterative Process,
Not an Event
Profile the Extent to Which
These Key Success Factors
Are Being Managed
! Leading change
! Creating a shared need
! Shaping a vision
! Mobilizing commitment
! Changing systems and
structures! Monitoring progress
! Making change last
Probabilities ofimplementing any
initiative improvedramatically when these
seven factors are
assessed, profiled, anddiscussed
! The seven key factors for change do notneed attention at one stage only
! Periodically revisiting the seven factors forchange keeps the change agenda moving
forward
After using the profilingexercise, identify
activities that will improveperformance on those
factors that received a
low rating
STEP 1
STEP 2
STEP 3
STEP 4
Following the four steps described above should result in a higher proportion of initiatives that not only happen, but happen fasterand more successfully !
SUPPORTING SLIDE
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Initiatives for change often evolve quickly to more fundamental,or transformational, change
38
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Change Agent
Steps in Changing Mindset
Culture Change: Changing Mindset 2
! Shared mindsetrepresents the
automatic thoughtscommon among the
individuals within the
organization! To change a shared
mindset, executivesmust send new
information signals and/or change employeebehavior
STEP 1
STEP 2
STEP 3
STEP 4
HR professionals play a central and critical role in culture change. As they design and lead culture change, they help their firmachieve transformation!
Build an Action Plan that
Integrates Multiple
Approaches to Culture Change
Articulate Why Culture
Change is Central to
Business Success
Define and Clarify the Concept
of Culture Change
Define a Process for
Assessing Current,
Desired & Gap Between
Identify Alternative
Approaches to Creating
Culture Change
STEP 5
! Culture effects theperformance of a
business
! Old ways are not
new ways
If cultural alignmentbegins with
customers and thenshifts to how
employees should
perceive the firm,unity will follow
! Top-down,directive
! Side-to-side,process
reengineering
!
Bottom-up,empowerment
To build an action plan forimplementing culture
change, the seven criticalsuccess factors for change
should be considered
SUPPORTING SLIDE
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If HR professionals are going to be change agents, they need tomaster four agendas
39
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Change Agent
Agendas to Become Change Agents
CHANGEAGENT
Catalyst/Champion/SponsorResponsible for
! Ensuring cultural change was partof every management discussion
! Models for cultural change were
created and implemented! Executive attention on culture
change remained high
FacilitatorFacilitate change all
through three stages:
! External support
!
Internal transition
! Managementownership
DesignerRedesign HR
systems to allowmanagers to
understand and ownthe culturaltransformation
DemonstratorDemonstrate the change within
HR professionals own function
12 3
4
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GE restructured the business mix, including both buying andselling businesses and significantly reducing the workforce
40
Takeaway Box
! Through town hall meeting, they work to
incorporate the values of speed, simplicity,
and self confidence into organization’sculture
!
HR professionals on the restructuringteams helped to determine the value of
assets and quality of management of the
business and to develop an integration orseparation process appropriate to each.
They become facilitators for and exemplars
of the new culture.
! As business process were improved, HR
professionals identified HR functions that
need to be modified to implement theimproved business processes.
EXAMPLE
! GE’s Management has focused on more
fundamental culture change
! They involved the employees in dismantlingbureaucracies, making faster decisions, moving
more quickly to serve customers and getting rid ofunnecessary work
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Change Agent
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
HR Business Partner ExampleWhat’s Next?
Conclusion
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Too often, human resource professionals are the cobbler’s unshodchildren; they fail to apply HR principles to themselves
42
Doing HR for HR
If HR professionals are to play the four roles described, theymust champion HR principles within their department:
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Takeaway Box
! Strategic HR refers to the process of linking
HR practices to business strategy
– Strategic HR is owned, directed, andused by line managers to make HR
strategies happen! HR strategy refers to building an agenda
for the HR function
–
HR strategy creates a purpose and focusfor the HR function
! HR organization refers to the process of
diagnosing and improving an HR function
to deliver HR services
– It creates a process that ensures HR
strategies happen! Those three issues are related because all
focus on helping a business to be more
successful
The “Doing HR for HR” goal is to translate strategy intoresults and to build the HR functional capability to meet
business plan!
HR
Organization
Strategic
HR
HR
Strategy
21
3
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HR executives engage in doing strategic HR, turning businessstrategies into results through HR practices
43
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Strategic HR: Turning Business Strategies into HR Priorities 1
An important step to be added to the traditional two-step, formulation-to-implementation process, is the “organizational capability” step!
! Strategy formulation serves threepurposes:
– Articulates a future direction for thebusiness
– Allocates resources –
Enunciates promises that reflectcommitments made through strategy
formulation discussions
! Through strategy formulation processes:
– Executives develop a vision of thefuture…
– …allocate resources to realize the
vision, and… – … make promises to stakeholders
about attaining it
! Firm’s organizational capabilitiesrepresent the process and practices
necessary to make a strategy happen
! Strategic HR connects business
strategies to HR actions by defining thecritical capabilities required
! Strategic HR planning must answered
these following questions:
– Business issues: What are the major
business issues we face? – Organizational capabilities: What are
the organizational capabilities required
to meet business goals? – HR practices: How do we leverage our
HR practices to create, reinforce, and
sustain theses needed capabilities?
! Implementation occurs whenorganizational practices are aligned with
the business strategy
! Too often, more strategies are formed
than are implemented –
Strategic plans are created, butimplementation fails to follow
Strategy ImplementationDefining CapabilitiesStrategy Formulation
Three Stages in Strategic Planning
SUPPORTING SLIDE
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HR strategy articulates a point of view for the HR function,defining how the work adds value to a business
44
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
HR Strategy: Shaping the HR Function 2
Issues for Building an HR Point of View
HR strategy shapes the HR function by defining the deliverables or outcomes that result from investing in it, justifying the resourcesit consumes, and helping to set its priorities:
Concept Definition Key Question Outcome
Vision Quick, energizing statement of why
function exists
What is HR trying to accomplish as a
function?
Tag line (e.g., “HR: part of the solution”; “HR:
dynamic business partner”)
Mission Statement of what HR does to add value
to the enterprise
What can HR do to add value for and
guarantee service to customers of the HRfunction?
Deliverables from HR (e.g., competitive advantage,
strategy execution, administrative efficiency,employee commitment, capacity for change)
Values Statement of what HR believes in as afunction
What does HR believe in as a function? Principles on which function is built(e.g.,integrity)
Stakeholders Statement of who HR serves Who are the major constituents served by
HR?
Clients and their expectations (e.g. managers,
employees, shareholders, customers)
Initiatives Statement of what programs and services
HR could offer
What practices or systems could HR
design and deliver to add value?
Organizational diagnosis (e.g., pillars, star
diagnostic framework)
Priorities (Goals/
Objectives)Statement of the top two to four prioritiesHR will sponsor and champion
What practices or systems should HRdesign and deliver to add value?
Organizational priorities for resource allocation
Actions Statement of an action plan for
implementation
What practices or systems will HR design
and deliver to add value?
Action plan
Measures Statement of what HR is accountable for What measures will HR use to indicate its
success?
Benchmarks and tracking indicators
SUPPORTING SLIDE
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As HR strategy sets the destination, an HR organization providesthe road map for getting there
45
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
HR Organization: Organization Diagnosis to Build HR Infrastructure 3
Organizational Diagnosis
An HR organization may be strengthened by following the organizational diagnostic process outlined in previous discussion forbecoming a strategic partner:
Better achievement of
strategic goals
Define an organizational
architecture
Organizational systemsand processes
Create an assessment
process
Provide leadership for
improvement of practices
Set priorities4
3
2
1
SUPPORTING SLIDE
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
What’s Next?
HR Business Partner Example
Conclusion
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Thinking about the future of HR may help to change today’s HRpractices in positive ways
47
OrganizationalCapabilities
What’s So?
! HR matters – HR practices
createorganizationalcapabilities...
– ...that lead tocompetitiveness
So What?
! Both line managersand HR
professionals...
! ...must become HR
champions – They must master
the technique forcreating valuethrough HRpractices
Now What?
! Seven challengeswill propel the HR
community forward – HR Theory – HR Tools – HR Capabilities
–
HR ValueProposition – HR Governance – HR Careers – HR Competencies
HR Champions
HRCommunity
Highly CapableHR Community
Future of HR by Addressing Three Questions
The answer to these three questions should help predict what’s next in the development of HR issues and the HR profession:
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
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Theory fulfils two purposes: it explains why things happen, and, itexplains when things happen
48
HR Theory 1
Why HR matters
When HR matters
! Theory provides
explanations based on
logic for how eventsrelate each other
! Theory weaves individual
events into predictableand generalizablepatterns
One reason HR has not become as pivotal as business as itshould be is that HR often lacks theory: Takeaway Box
! Managers and HR professionals must
master the theory behind HR work
– They need to be able to explainconceptually how and why HR practices
lead to their outcomes! Regardless of the preferred theory…
! …managers and HR professionals should
abstract from it a higher level of reasoningfor their day-to-day work and..
! …thus better explain why their work
accomplishes its goals
! Contingent thinking focuses not only on the
practices (the then of if…then proposition)
…! …but on the setting that facilitates the
practice (the if )Reliance on theories creates thoughtful practitioners withsolid grounding in the basics of HR practices!
Challenge #1: HR Theory
! Theory lead tocontingent thinking
! Contingent thinking is
based on a series ofif...then equations
! “Why did this HR
practice work?”
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
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In developing the HR practices needed for the future,improvement must continue in many of the HR core technologies
49
LeadershipDepth
KnowledgeTransfer
CultureChange
Customer Focus HR
New
Issues
Global HR
New issues in developing the HR practices, represented by the five HR tools discusses below, will present HR professionals withcorresponding new questions:
HR Tools 2
Challenge #2: HR Tools
! HR professionals need to articulate the HRramifications of a global business strategy
! HR professionals should be aware of and
sensitive to unique country conditions
! Defining and creating the leader of thefuture will be a major challenge for the
HR professional
! HR professionals must establish
systems that create or discover future
leader
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
! HR professionals work with information-systems professionals to createcomputer networks that share information
! They also create a mindset among all employees that value new ideas
and innovation and devalues game-playing
! Culture change deals with information-sharing, treatment of employees, work
allocation, and decision making
! HR professionals must learn to engage
the organization in a series of actions
! HR practices need to focus both onemployees and on external customers
! When employee-focused HR practices shift
to customer-focused HR practices,employees and customers both win
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HR communities must also exhibit capabilities, processes, andpractices that serve as criteria for evaluating their success
50
HR Capabilities 3
Today, new HR capabilities must be added to the traditionalones, including the following: Takeaway Box
! Speed : How quickly can HR work be done
without sacrificing quality?
! Implementation: How well can new ideasbe turned into actions with visible results in
terms of employee behavior or benefits tothe firm?
! Innovation: How able is the HR community
to think creatively about solving oldproblems and about finding solutions to
problems it has not previously considered?
! Integration: How well does HR work
integrate with strategic plans, customer
goals, employee needs, and other stafffunction plans?Delivering these outcomes will require that HR communities
build new capabilities!
Challenge #3: HR Capabilities
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Speed
Implementation
IntegrationInnovation
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HR investment in the future must focus on value creation and ondeveloping a value equation for HR services and products
51
HR Value Proposition 4
Simple questions are aimed at making explicit therelationships between HR practices and the three locales of
value:
HR professionals must create an HR value proposition,aligning HR practices to simple business realities!
Challenge #4: HR Value Proposition
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Takeaway Box
! HR professionals should invest serious
time in learning how their work affects
business realities! They should be able to pass this one-
question exam: “How does your work addvalue to this business in economic terms?”
! Organizational capabilities, the enduring
attributes characterizing an organization...! ...create value for the customers served by
them
! When customer value is created, economic
value follows
! HR value proposition is that HR practices
create organizational capabilities...! ...that create customer value...
! ...that in turn creates economic value
! How does HR affectmorale, commitment,
competence, and
retention?
Employees
Customers ! How does HR affectretention, satisfaction,
and commitment?
Investors ! How does HR affectprofitability, cost,
growth, cash flow, andmargin?
HR
Practices
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Governance deals with how work is coordinated, where in thefuture governance may take many forms
52
HR Governance 5
Governance applies within the HR community:
HR community will become a virtual organization in whichwork occurs to set policies and administer HR practices!
Challenge #5: HR Governance
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Takeaway Box
! Question relating to such a transition:
– How does HR organize to delivery value
– Who does HR work? –
Where is accountability for HR work?
–
How is the structure of the firm’s HRcommunity established?
! Firms create HR functions with a
dramatically different look – Function might become very small and
serve as a broker of service
–
It may split into distinct roles (CoE,
generalists, service centers) that work
with each other to create value
–
Third possibility would be an HR functionhoused under one strong central body…
– …but with responsibility for ensuring
company responsiveness to local needs
Pyramids Networks/Clusters
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A more apt metaphor for careers in HR in the future may be thecareer as a mosaic
53
HR Career 6
A career mosaic may be characterized in terms of threedimensions: Takeaway Box
! HR professionals may work in:
– At a site (e.g. plant)
– A business unit (e.g. product line) –
At corporate HR
–
Outside the HR function! HR professionals may be:
– A specialist (focusing on a specific HR
practice) – A generalist (integrating HR with other
work)
! Particular positions may have one of three
career aspects:
– Contributor (working alone)
–
Integrator (coordinating the work ofothers)
– Strategist (directing policies and
procedures)
Multiple career paths exist, many jobs within the HRcommunity are important, and individual competencies are
more important than career stages!
Challenge #6: HR Career
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
BUSINESSSITE
CORPORATEOUTSIDE HR
Generalist
Specialist
Generalist
Specialist
Generalist
Specialist
SpecialistGeneralist
Strategist
Integrator
Contributor
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Competencies in each HR competencies domain contribute indifferent ways to the overall performance of HR professionals
54
HR Competencies 7
HR competence can be conceptualized using a three-domain framework: Takeaway Box
! Knowing the business lets an HR
professional join the management team;
! Knowing HR practices helps theprofessionals contribute; and
!
Managing change helps the HRprofessionals make things happen\
! The behavior that enhance credibility
include: – Accuracy
– Consistency
–
Meeting commitments
– Chemistry
– Confronting appropriately
–
Integrity – Thinking outside the box
– ConfidentialityBeyond the three domains outlined above, however, is adomain of final necessary competency for the successful HR
professional: Credibility !
Challenge #7: HR Competencies
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
BusinessMastery
(18.8%)
PersonalCredibility
HR Mastery(23.3%)
Change +Process
Mastery(41.2%)
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
What’s Next?
HR Business Partner Example
Conclusion
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BUSINESS PARTNER
Business partners exist in all four roles defined in the multiple-role model, not just in the strategic role
56
Business Partners Play Multiple Roles= Strategic Partner + Administrative Expert + Employee Champion + Change Agent
Source: Dave Ulrich – HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
FUTURE/STRATEGIC
FOCUS
DAY-TO-DAY/OPERATIONAL
FOCUS
PEOPLEPROCESSES
Strategic Partner Change Agent
Administrative Expert Employee Champion
Align HR systems with
business strategy and set HR
priorities for a business entity
Save business money through
more efficient design and
delivery of HR systems
Help business through
transformations and to adapt to
changing business conditions
Ensure employee contributions
to the business remain high
(commitment & competence)
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The Changing Nature of Human Resources
Becoming a Strategic Partner
Becoming an Administrative ExpertBecoming an Employee Champion
Becoming a Change Agent
HR for HR
What’s Next?
HR Business Partner Example
Conclusion
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Ultimately, a firm’s human-resource community holds crucialresponsibility for adding value and delivering results (1/2)
5858
! To function as a strategic partners, HR professionals must fulfill the following tasks.
–
They must establish an organizational architecture and be able to use it to translate strategy into action
– They must learn to perform effective organizational diagnosis by asking good questions and generatingcreative and apt alternative practices
– They must be able to set priorities for initiatives and then to follow through on them
! HR professionals, to become administrative experts, must learn how to:
–
Reengineer HR work through use of technology, process reengineering teams, and quality improvements – Define the HR role in creating value for the firm
– Create a shared services HR delivery mechanism
– Measure HR results in terms of efficiency (cost) and effectiveness (quality)
! To become an employee champion, HR professionals must demonstrate to employees the confidence and
trust of ministers, the sensitivity of psychologists, the creativity of artists, and the discipline of pilots.
! In working to build employee contribution, HR professionals work with managers and employees to ensurethat employees can meet their expectations.
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Ultimately, a firm’s human-resource community holds crucialresponsibility for adding value and delivering results (2/2)
5959
!
HR professionals complement the line managers’ work by undertaking the following tasks:
–
Being the employees’ voice in management discussions
– Assuring employees that their concerns are being heard
– Defining and providing resources that help employees meet the demands made on them
! HR professionals play a critical role as change agents when they perform the following functions:
– Being the employees’ voice in management discussions
–
Assuring employees that their concerns are being heard
– Defining and providing resources that help employees meet the demands made on them
! HR for HR requires that HR professionals manage the following three sets of activities:
– The professionals must do strategic HR, turning business strategies into organizational capabilities andorganizational capabilities into actions
– HR professionals must do HR strategy, crafting a point of view for the HR function
– HR professionals must do HR organization, using HR strategy to strengthen the function