New Roles Of Human Resources (PPT)

The new roles of Human Resources: do we really need the area of Human Resources? Talent Management and Innovation for reinvented companies

The new roles of Human Resources

Global business trends 3

External pressures 8

People management implications 9

How is positioning your company? 10

HR trends and roles 12

Process-oriented operations 14

People management versus administration 17

Line managers role 19

Talent Management 23

Innovation 31

Organizational models: do we really need the area of Human Resources? 37

Global business trends

Globalization

Companies size, complexity, and business diversity.

Global operating model that takes advantage of synergies and diversity.

Globalization

Enterprise sustainability

Risk management .

Ability to innovate as a key lever to be competitive: knowledge based sustainability.

Ability to change quickly.

Globalization

Risk management .

War to attract customers: customer oriented capabilities and organization

Service excellence .

Attraction of emerging consumers .

Products and services oriented to customer satisfaction , and profitability .

Globalization

Risk management .

Active cost management

Operations excellence .

Active management of investment : technology, transformations, new business/products, …

Active management of costs :

Salary, benefits (global compensation).

Expenses: travel, offices, …

Globalization

Risk management .

Active cost management

Operations excellence .

Active management of investment : technology, transformations, new business/products, …

Active management of costs :

Salary, benefits (global compensation).

Expenses: travel, offices, …

Technology renewal, as another key lever to innovate and to be competitive

Customer, employee, and process centred technology: usable and useful technology !

Demand management oriented to profitability and sustainability , deriving costs from maintenance and infrastructure to value creation investments.

External pressures Economic crisis Lack of funding Drop of consumption Loss of customers Rapid cost reductions Layoffs Downsizing Increased sales pressure and, eventually … mergers or acquisitions

Demographic changes:

Workforce composed by different generations.

Workforce aging (loss of skills).

Decline in the number of graduates.

Immigration (more workforce diversity).

Cultural changes:

Personal and professional life new balance.

Social responsibility and global sustainability (economic, social, and environmental).

Technology evolution:

Breaking information technology: internet, mobile systems, GPS, ERP evolution, …

Other: biotechnology, chemistry, …

Technology turnover pressure: the productivity paradox.

Globalization Enterprise sustainability War to attract customers: customer oriented capabilities and organization Active cost management Technology renewal, as another key lever to innovate and to be competitive

People management implications

Knowledge workers productivity: engagement makes the difference.

Engagement and rapid change ability: more leadership capability and highly adaptive workforce .

Global talent competition: recruiting and retention needs employer branding and a clear talent acquisition strategy .

Workforce aging: loss of critical knowledge and experience; knowledge management becomes critical.

Diversity acceptance (leadership), and diversity management (life balance, part time, remote work, …).

Cultural alignment with business trends.

Border workforce between business/operations and technology .

“ Business as usual” pressures

Drop in employee engagement .

Decrease workforce productivity ?

Contamination of employer brand .

Acute workforce planning .

Revision of talent acquisition strategy.

Retirement could be delayed ?

New or stronger skills requirements.

Rapid changes with ¿enough workforce change ability/acceptance , enough leadership ?

More pressure to reduce people costs , and Human Resources costs .

…

Crisis pressures +/-

How is positioning your company? “ Stay in the freezer”

“ Do anything at all”.

“ Well, let’s reduce costs because we could have funding problems”.

“ OK, let's minimize costs, and let’s fire people if necessary”.

“ How can we increase sales without more expenses?”

“ Hyperactivity”

“ This is the time to transform the company and prepare it to grow”

New operating model.

Driving innovation.

New talent acquisition

Promoting people engagement and alignment

New governance model and organization and…

New people management practices and organization.

Where do you think is your company? On the left side? On the right side?

How is positioning your company? “ Stay in the freezer” “ Hyperactivity”

“ Do anything at all”.

“ Well, let’s reduce costs because we could have funding problems”.

“ OK, let's minimize costs, and let’s fire people if necessary”.

“ How can we increase sales without more expenses?”

“ This is the time to transform the company and prepare it to grow”

New operating model.

Driving innovation.

New talent acquisition

Promoting people engagement and alignment

New governance model and organization and…

New people management practices and organization.

Where do you think is your company?

The world, and business, will never be the same.

Sooner or later, slowly or rapidly, we will have to change the way in which we operate our company, including people management practices and organization.

On the left side? On the right side?

HR trends and roles

“ Traditional” model of HR roles and processes: functional model.

Mission and responsibilities based on functional areas :

Facilitates specialization, but …

Impede a global vision and the necessary coordination to contribute to the business with the engagement and the productivity of employees.

Support services Strategy and planning Internal communication Performance management Training and development Recruiting Rewards and benefits Jobs description and selection Organization development Labour and legal framework Payroll and administration Technological support Health and safety Human Resources Audit Illustrative

HR trends and roles

Who is responsible for contributions to business that are based mainly on people?

? Innovation Productivity Customers Quality Leadership development Organization proficiency Workforce productivity Employee engagement Workforce proficiency and adaptability Acceptance of change Ability and willingness to innovate People management efficiency

HR trends and roles: Process-oriented operations

Process-oriented operations :

Map of processes instead of organization chart.

Outputs aligned with business needs.

Output/process oriented scorecard.

Process responsible assignments.

Rewards Internal selection and recruitment Resources planning Leave management Performance management Training and development Deployment Not only the employee life cycle but end-to-end processes

Example of level 1 and level 2 processes:

Develop the strategic and policy framework Define Talent Architecture Continuous Talent Definition Review of Talent Management Strategy Competency framework maintenance Development and diffusion of the employer brand Define and support organization structure and practices Talent acquisition Talent Retention People management Organization design Change management support Knowledge transference processes Quality and innovation processes Somebody responsible for combining performance, development, compensation and engagement to develop and preserve best people Somebody responsible for the profitability of people investment Illustrative

Governance model:

Process responsible

¿Area responsible?

Decision rules:

Prevalence of end-to-end process results.

Technological costs limitations (responsibility shared with the technological area).

Process view Organisation view

HR trends and roles: People management versus administration

People management versus administration :

People management efficiency Pressure to increase productivity, engagement, innovation, individualization, …, that is to say, pressure to spend more money. Pressure to reduce people costs, and Human Resources costs, that is to say, pressure to standardize and spend less money. Separation between people management and administration Leadership development Organization proficiency Workforce productivity Employee engagement Workforce proficiency and adaptability Acceptance of change Ability and willingness to innovate

HR trends and roles: People management versus administration

Part of the processes is executed by a services area that must provide flexible services at a minimum cost:

Process view Organisation view Administrative part of the processes flows. First candidate to externalization? Service level agreement

HR trends and roles: Line managers role

Those who really manage people are line managers , and human resources only acts as coach and as an expert service.

As always!, but now:

Employees are fully aware that the decisions are taken by their supervisors , not by Human Resources Area.

More leadership development needed (specially people management skills), …

… and more support from HR services.

… and …

The Human Resources practices and policies allows maximum individualization for each employee :

Different policies and talent management practices for different employee “segments” ; first we have to decide the segments, following different criteria: generation, value for the company, talent availability, …

Possibility of choosing an option between some possibilities authorized by human resources to maintain internal equity (flexible compensation, learning strategy, flexitime or one day of remote work or one continuous working day, …).

Flexible, broad and simple policies that must be adapted by the managers for each employee: the manager decides the employee salary among an authorized range (with a limit of total salary for the team), …

With this individualization approach, Human Resources must assure organizational justice : distributive, procedural, informational, interpersonal.

Typically, a HR Business Partner is designated to help in adapting practices and policies to different business areas and different workforces.

Some HR coaches can help managers, but leaving them responsibility for managing their own team.

Process view Organisation view Administrative part of the processes flows. Tasks and decisions of people managers, helped by HR Coaches and HR Business Partners .

“ The devil is in the details”:

The key is a proper separation

of the tasks of the process .

Unfortunately, this proper “dissection” depends strongly on technology support , but fortunately, ERP’s are already on the right track.

Manager HR specialist / HR coach / HR Business Partner HR administration Is it easy to do? Is the workload acceptable? Is any value added to the decisions of the manager? Do they run the process with efficiency and quality?

HR trends and roles: Talent Management

Talent Management : what is new?

Therefore,

… we have to identify the critical roles and workforces for the company ,

… we have to “individualize” the employee life cycle , and perhaps even the HR services, for these employees,

But the budget is limited (as always), therefore,

… we have to reallocate budget to critical workforces .

In a knowledge based economy, innovation and productivity depends strongly on “talent”:

Skills and knowledge.

Commitment (as a result of engagement).

Performance.

Decreases the flow of qualified people (specially engineering).

Different values of younger workers.

Certain industries suffer from an image problem (resources, recently financial services).

“ War of talent” Capability to attract , develop , retain and obtain the maximum performance of the most critical and decisive professionals for the company , by means of differentiated management practices

Talent segments : role based talent .

Leadership.

People involved on key decisions.

People responsible for significant business volume.

People responsible for operative processes.

People with specific skills and knowledge.

Employees pyramid

Talent segments : role based critical talent .

Talent market (internal and external)

People involved on key decisions.

People responsible for significant business volume.

People responsible for operative processes.

People with specific skills and knowledge.

Business strategy Critical capabilities Talent Management challenges

Leadership.

Employees pyramid

Critical services managers.

Key account managers.

IT, or engineering, project managers.

Product design and development.

Branch responsible.

Commercial team managers.

Examples

Individual talent recognition.

Employees pyramid Engage and retain What happens? Leave management? Train and retain Skills and knowledge Performance + - - +

Talent definition depending on business impact, and talent management challenges: different talent definitions for different workforces, with different levels of detail.

Business acumen.

Leadership skills.

Technical knowledge.

People management skills.

…

…

Cultural core

competencies.

Employees pyramid

Talent Management “Tornado” (just a visual representation or a mental model): HR processes are the engines of this “tornado”.

Define Talent needs Discover and manage external talent sources Discover internal talent Develop talent Deploy talent in the right place at the right time

Performance management

Role definition and profiles

Individual, team metrics

…

Career management

Succession planning

Workforce scheduling

Learning management

Knowledge management

Engagement management

Talent Management: reallocation of effort to critical workforces

Role of line managers: individualization of Human Resources practices

Different processes for different workforces.

Processes that, at the same time, can be individualized for the employee thanks to line manager decisions.

This model can be developed progressively , designing few differential actions for some employee segments:

Talent retention actions Talent acquisition actions Critical workforce? ---------------------------- Talent management challenge? Workforce

Impact on project costs and internal efficiency.

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Lack of engagement, loosing some key people.

International expansion depends on the success of each country.

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Lack of critical management skills , including foreign languages, combined with business acumen.

Workforce responsible for branches sales.

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Lack of critical commercial skills combined with team management, specially in small villages.

More visibility and integration with business areas.

Variable salary based on success criteria.

New recruiting sources for experienced people.

Development of specific employer brand for this workforce.

IT project managers International office managers Managers of commercial teams

Engagement program for people recruited in other countries.

Career design for expatriates.

Central development program for people recruited in other countries.

New recruiting sources in each country.

Special bonus after several years in the same branch, based on performance.

Creation of a Commercial School (based mainly on eLearning simulations).

New recruiting process based on critical competencies.

Special career design for branches in small villages.

HR trends and roles: Innovation

Innovation as a process which is based on people.

Only people can materialize innovation :

New products and services.

New businesses / markets / clients.

New internal processes / tools / providers / organization.

…

An innovation department can not generate business impacts if :

There is no sponsorship and leaders do not promote innovation.

The culture of the organization and the management practices do not tolerate mistakes.

There is no team work , or it is not promoted clearly.

There is not incentives to make an extra effort to innovate.

Training and knowledge management practices doe not facilitate innovation (knowledge silos, out of date training, …).

Some characteristics of an organization highly qualified to innovate :

Human Resources must have a key role on innovation, independently of

the existence or not of an innovation department, …, and on leadership behaviour.

Training programs offer the right balance of generalist and specialized training, including internal mechanism to innovate Knowledge management practices allow the creation of multidisciplinary teams that have access to external up-to-date information as well as information from other areas Performance management practices give value to team work Leaders and people in general accepts and manage efficiently all kinds of diversity, assuring organizational justice Leaders and line managers do not overreact to employee mistakes or lack of knowledge (to shame the employee and to spread the mistake does not make them better) Knowledge sharing, companionship, initiative, …, are well valued by leaders, and more than individualist behaviours Innovation is the CEO agenda, assuming that cannot produce short term financial results There are clear processes and mechanisms to create a portfolio of opportunities to innovate, and to implement those with more business impact Leadership behaviour Human Resources Innovation department Who can contribute more to this behaviour? - -   - -   -    -    -   -   -  - -  

Innovation model and HR roles :

Evaluation of results Innovation supervision

Innovation development

Resources and budget assignment .

Projects execution.

Operations transformation and change management .

Innovation direction Prioritisation and project selection Generation of ideas Innovation Area Employees Clients Crowd sourcing Providers Innovation external network Prospective analysis Client and market deep knowledge Internal operations knowledge Business Core skills Skills and culture for Innovation Innovation performance management Leadership development for Innovation Knowledge sharing practices and tools Training for Innovation

Some examples of HR initiatives:

Leadership development for Innovation Knowledge sharing practices and tools Training for Innovation

Training program for:

Product designers.

Marketing specialists.

Account managers.

Coaching Presentation to board of directors Prioritisation and business plan New products and services design Team working training and tasks assignment Configuration of multidisciplinary teams Ideas implementation Ideas selection

Leadership development for Innovation Knowledge sharing practices and tools Training for Innovation

Position rotations during "welcome programs" for new employees.

Leaders rotations and external development programs in different industries with related core skills.

Detection of “ innovators ” and “ experts ”: people that collaborate with different areas or are considered as experts by colleagues and supervisors.

Knowledge sharing practices and tools Training for Innovation

Knowledge management practices and tools oriented to generate and refine ideas :

“ Crowd sourcing” of “ best practices ”:

With some moderators that filter, organize and approve practices.

“ Crowd refinement” (Wikis) from a starting point (started and finished by a moderator?).

Innovation contest (internal or external).

Example: “ Innocentive ” Web site

Organizational models: do we really need the area of Human Resources?

Do we need to group several roles in the same functional area?

People administration, labour and legal, change management, transformations support, talent management, leadership development, innovation support, ...

Do we really need the area of Human Resources?

Exercise:

Choose the company of any member of your team.

Answers the questions :

Do you think this company needs a “classical” area of Human Resources ?

Why?

Please, show us an organization chart distributing typical HR roles and also new roles you think are necessary.

Alignment of mission and organization :

Must we include people with different missions in the same functional area?

Missions:

Help the line manager and leaders to get the maximum productivity and engagement of employees.

Reduce cost of employees and Human Resources costs.

Develop the future leadership.

Give support and facilitate all changes driven by business imperatives.

… .

Examples of organizational charts (I):

CEO Leadership development Operations Financing HR Business Partner HR Business Partner HR Services Change management Labour and legal Human Resources HR Administration Technical Services Recruiting Training

Examples of organizational charts (II):

CEO People development Operations Financing HR Administration Labour and legal Human Resources Change Management Recruiting Training

Why not this one?

CEO People development Operations Financing HR Administration Labour and legal Administrative services Change Management / organization support Talent Management Leadership development Knowledge management and Innovation support Talent acquisition Talent retention HR Business Partner