Event Management Training & Conferences Knowledge Development Center HR as Strategic Business Partner Joris de Fretes 9 December 2009 Linking HR efforts directly to the business strategy and to the environmental factors that frame the strategy. Strategic Business Partner “HR Transformation”, Dave Ulrich, 2009
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Event ManagementTraining & ConferencesKnowledge Development Center
HR as Strategic Business Partner
Joris de Fretes
9 December 2009
Linking HR efforts directly to the business strategy and to the environmental factors
that frame the strategy.
Strategic Business Partner
“HR Transformation”, Dave Ulrich, 2009
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PRINCIPLES FOR building HR FUTURE
• HR Strategy must be anchored to the business strategy.
• HR Management is NOT about programs; it’s about relationships.
• The HR Department must be known as the part of the organization that “anticipates change” and “understands what is necessary to respond to it.”
• HR Executives should be an outspoken advocate of employees interests, yet it must understand that business decisions have to balance a range of factors that often conflict with one another.
• The effectiveness of HR efforts depend on staying focused on issues rather than personalities.
• HR Executives must accept that constant learning and skill enhancement are essential to their being an effective contributor to the business.
“Creating A Human Resources Strategy For Your Business”, Jan Spak, 2002
Some Questions
• Are all HR professionals in your organization have a strong understanding of the business, competitors, and the external business environment ?
• Has HR works already takes an outside‐in approach based on external stakeholder (i.e. customer, regulator, investor) ?
• Has our organization clearly defined organizational capabilities that ensure strategy execution ?
• Are our HR leaders focus on business result ?
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Why Do the Transformation
BUSINESS CONTEXT
BUSINESS STRATEGY
HR REDESIGN
TRADITIONAL HR
HR TRANSFOR-MATION
• Traditional HR begins by focusing on HR issues and redesigning HR governance or practices.
• HR Transformation begins with an understanding of the context in which the business operates (both general conditions and specific stakeholders).
The context of business setting captures “why”of HR transformation.
Identify readiness level for HR transformation
through HR Strategy Assessment
HR’s role must be transformed in order to deliver value to customers, shareholders, managers and employees
This transformation requires integrating the various HR practices and focusing them jointly on value-added agendas such as intangibles, customer connection, organization capabilities and individual abilities
“HR Value Propositions”, Ulrich and Brockbank, 2005
Transformation Focus
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6 implications for HR transformation
• HR works does not begin with HR ‐ it begins with the business, how HR activities create value for the stakeholders
• HR must have a direct line of sight to the market place – to customer who buy the products and to shareholders who provide capital
• HR must be framed as a source of competitive advantage – able to create human abilities and organizationalk capabilities better than competitors
• HR professionals must align practices with the requirements of internal and external stakeholders
• HR professionals must acquire the personal knowledge and skills necessary to link HR activity to stakeholder value
• HR professionals need to be able to spell out how to provide a unique and powerful perspective of the linkages between employee commitment, customer attitude and investor returns
Ulrich and Brockbank – HR Value Propositions
HR Transformation Process
Business ContextGlobalization TechnologyEmployee inside Customer and Consumer outsideInvestors Competitors
Organization ChallengesTo respond the business context the organization need to be good at
• Deep skills and credibility• Specialized tool set• Accurate predictive
capability
To predict business demand and model the outcomes – for example how to translate :seasonal to resourcingpeaks strategydeveloment to organizationnew market designsales force to integratedperformance performance
in strategic decision‐making, and create market‐driven connectivity.
Personal credibility: Credible to both their HR counterparts and the line managers whom they serve. They also have effective writing and verbal skills.
HR delivery: Focus HR activities in four key areas: staffing, training & development, performance management, managing/ measuring the impact of overall HR practices.
Business knowledge: Keen understanding of how the firm creates wealth, how the firm is horizontally integrated (e.g., how sales and marketing relate to manufacturing), and what the industry challenges are.
Knowledge of HR technology: Able to leverage technology for HR practices and use e‐HR/Web‐based channels to deliver value to customers.
University of Michigan, Ann Arbor, HR competencies Study, 2005
Domains of Competencies for HR Professionals
• Knowledge of the business • Delivery of HR practices • Ability to manage change• Culture management• Personal credibility• Financial management • External competitive and customer demands• Strategic HR performance management
• Critical causal thinking, • Understanding principles of good management, • Estimating causal relationships, and • “Executive” communication (to communicate HR strategic
performance results to senior line managers.)
David Ulrich, “HR Scorecard”, 2001
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HR Transformation Milestone Checklist
1BusinessContext(WHY)
2Outcomes (WHAT)
4HR
Account-ability
(WHO)
3HR
Design(HOW)
• Business Demands• Globalization• Technology• Investors• Competitors
• Stakeholder capabilities
• HR capabilities
• HR Organization• HR Process• HR people management• HR Skills & Competencies• HR Culture and mindset
• HR Leadership Team• Line Managers• External Customers &
Investors• Consultant &
Advisors
XL Experience
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Nature of telecommunication industry that drives HR strategy :
•Capability in technology change rapidly•Capability in financial capital intensive •Capability in regulation new industry, not “mature”•Capability to understand customer needs trends, segmented customers
Business Context
Need alignment to company directionNeed to clarify role, accountability, & capabilitiesNeed to revamp organization to create strong platformTo realize business strategic partner role to function
1
2
3
4
The Background
To anticipate industry dynamics and internal business requirements, we are looking at several aspects to address:
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Organization Human Capital Development
Director
HC Business Partnership
Learning and DevelopmentHC Operation
HC Strategy andPlanning
• Employee Relations• Reward Management• Resourse Management• HC Information System• Employee Branding• Corporate Culture
Source: Reengineering Human Resources, Lyle M. Spencer, Jr., Ph.D.
TODAY
Value to the business
30%
10%
60% StrategicStrategicStrategic
DeliveryDeliveryDelivery
ministratministratministrat ionionionAdAdAd
TOMORROW
Processes are standardized and streamlined, while maintaining high flexibility for improvements
Organization improvement is to contribute more values to the business
StrategicStrategicStrategic
DeliveryDeliveryDelivery
AdministrationAdministrationAdministration
ResourcesResources
10%10%
30%30%
60%60%
Resource
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HCD operational roles1HCD operational roles1
• As a strategic business partner-alignment of HR activities and initiatives with the company strategy
• As an organizational change agent-supporting the change and transition of the business in the area of the human capital in the organization
• As a champion of operational excellence - to provide quality service at the lowest possible costs to the organization
• Building relationship with internal & external business partner- the employee advocate is able to take care about the interest of employees
1adopted from D Ulrich “HR Roles Model”2adopted from G Haines “Center for Strategic management”
HCD Key Deliverables2HCD Key Deliverables2
Key deliverables are identified as spearhead in realizing unit objectives
Strategic People Management
Acquiring Talented Workforce
Creating learning organization
Collaborating withstakeholders
Engaging Workforce
Building high performance
team
CreatingOrganization
culture
Be strategic business partner
Alignment with company Strategic plan
Leadership
Personal XLenceXLence Plan - performance setting process
which ensures individual objectives and development plans are directly linked to achieving
business plan goals.
XLence Check Point - critical to the whole Personal XLenceprocess. In this review, the superiors are required to lead and support the employees on pursuing the target achievement. This session is also to discuss the progress of objective/achievement compare with the target planned.
XLence Evaluation - the completion of
Personal XLence process is the annual
Performance Evaluation. This written review should
summarize the ongoing feedback, both formal and informal, given throughout
the year.
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Talents Pool
E5
E4
E3
E2
E1T1
T3
T2
T4
T5 Staff, Officer,Engineer, Analyst
Supervisors
Managers
Vice PresidentGeneral Managers
DIRECTORS
Employee PopulationTalents Pool
POTE
NTI
AL
CURRENT PERFORMANCE
Outstanding Future Potential
StrongFuturePotential
StableFuturePotential
Has Issues/Insufficient data
WATCH LIST
WATCH LIST
UNKNOWN/WATCH LIST
Demonstrates Performance
Emerging Performers(3 – 5 years)
Accelerated Development
Pool(1 – 3 years)
Solid Performers
Stands Out
Accelerated Development
Pool(1 – 3 years)
Accelerated Development
Pool(Immediate)
Solid Performers
Development Plan
PERFORMANCE DEVELOPMENTC
OM
PETE
NC
YD
EVEL
OPM
ENT
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Management DevelopmentProgram for GMs
Session 1MANAGING BUSINESS
PERFORMANCEBy Practicing Sound People Leadership
The 1st session modules help participants strengthen the basics for achievingbusiness results and for setting up sound practices in people leadership
WHY?
Session 2
The 2nd session modules support participants in further developing capabilities to ensure business success through stronger collaboration both internally and externally.