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HR Business Partnership: Do our business partners really hear us?

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HR Business Partnership is all about strategic thinking; it is never meant to be a strategic function. It is a tactical role that requires strategic mindset.

HR Business Partnership is all about strategic thinking; it is never meant to be a strategic function. It is a tactical role that requires strategic mindset.

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  • 1. Oliver C. Requilman Coca – Cola FEMSA HR’s VOICE in ACTION: Do Business Partners Really Hear HR? Oliver C. Requilman, DBA, 5th September, 2013
  • 2. HR BUZZ as it is TODAY • More senior population, no ready next gen • Performance measurement • Talent Management and Acquisition • Internationalization or globalization of HR • Leadership development • • • • • Outsoursing Diversity Shared services Cost optimization Engagement and empowerment • Global HR mobility • From Human Capital to Human Development Oliver C. Requilman, DBA, 5th September, 2013
  • 3. The Evolution of HR Oliver C. Requilman, DBA, 5th September, 2013
  • 4. Origins of HR A Brief History of HR Management End of 18th Century: Welfare Officers • Protection for female employees & children • Care for injured & sick employees • Created in respond to harshness in industrial conditions The World Wars: Labour/ Employment Manager • Administration of absence, training & recruitment • State / Trade Union partnerships • Handled queries on compensation matters • Employee data 1945 – 1979: Personnel Mgt • Welfare & employment mgt were integrated  Personnel Mgt • Output could be influenced by employment policies • Structured compensation policy • Collective bargaining & IR • Specialized functions (70’s) 1980 – 2000: Human Resource / Compliance Officer • Administrator & technical expert • Focused on improving efficiency & effectiveness • Compensation engineering as key to productivity (incentive plans, deferred comp, options) Oliver C. Requilman, DBA, 5th September, 2013 2001 till now: Strategic HR • Strategic Business Partner • Change Agent • Employee Champion • COE • Share service
  • 5. The Evolution of HR The HR Journey of an “HR Professional” High Value → Impact/Contribution to the Business Strategic HR Human Resource Management Personnel Management Labor Manager Welfare Officer 1890 - 1913 2nd Industrial Revolution 1914- 1939 • Administrative focus • Compliance • Traditional mind set • Limited scope of activity • Specialized functions 1945 - 1979 World WarsInternal use Classified - • Administrative focus with enlarged scope of activities • Support function • Less reactive & more proactive 1980- 1990 Globalization • Business Partner • Focus on valueadded activities • Proactive • Multidisciplinary • Multi-faceted roles 2000 till now
  • 6. The Evolution of HR The HR Journey in Nature and Scope of Work continue to evolve High Value → Impact/Contribution to the Business Strategic HR Planning HR as Business Partner Organizational Design Survey Action Planning Staffing Transactional Work Performance Management Share d Svc Centr e Culture & Image HRIS Employee Relations Labor/Union Relations Safety & Workers’ Compensation COE Training & Development Benefits Compensation Transformation al Work Compliance Welfare / Employee Care Employee Welfare Labor Relations Employee Personnel Relations Admin Classified - Internal use Human Resource Organizational Effectiveness Source: Rich Vosburgh
  • 7. The Changing Role of HR Oliver C. Requilman, DBA, 5th September, 2013
  • 8. What CEOs Really Want from HR? Just a quick REALITY CHECK! Employers want HR to address strategic issues involving the competitiveness and performance of the firm… More than the role of protector and administrator. Oliver C. Requilman, DBA, 5th September, 2013
  • 9. What CEOs Really Want from HR Reality Check The business environment: Globalization Economic uncertainties Technology innovations Profitability thru Cost & Growth Intensified Competition Requires companies to focus on: Increasing value Organizational capabilities → fast, responsive, cost effective Creating climate for action Unique competitive advantage Oliver C. Requilman, DBA, 5th September, 2013 Requires HR to change: Business savvy Align with strategy Strong bench strength Change catalyst Help biz leaders to achieve objectives
  • 10. The Changing Role of HR Reality Check A survey of 500 HR directors across Europe, the Middle East and Asia, found out that only 15% of the activities carried out by HR departments are related to "pure strategic interventions". Watson Wyatt Study Oliver C. Requilman, DBA, 5th September, 2013
  • 11. The Changing Role of HR The Shift in the Balance of HR Roles HR needs to realign its service delivery model to add more strategic value to the organization Strategic 15% Strategic 60% Transactional/ Operational 85% Transactional/ Operational 40% % of available resources Classified - Internal use
  • 12. The HR Business Partnership Model Oliver C. Requilman, DBA, 5th September, 2013
  • 13. 3 main workstream of HR Business Delivery HR DELIVERY HR Business Partnership Center Of Excellence Oliver C. Requilman, DBA, 5th September, 2013 Shared Services
  • 14. The Role of HR Ulrich’s Four-Role Model Four Roles for HR • Administrative Expert • Employee Champion • Change Agent • Strategic Partner Dave Ulrich identifies four distinct roles of HR professional that may add value to a business and create sustainable competitive advantage. Classified - Internal use
  • 15. The Roles of HR Ulrich’s Four-Role Model Future/Strategic Focus Strategic Partner P R O C E S S E S Change Agent Aligning HR & Business Strategy Managing Transformation & Change Active Role in setting strategic direction Effecting Transformation & Change Administrative Expert Employee Champion Managing The Firm’s HR Infrastructure Managing Employees’ Contribution Process Optimization & Efficiency Motivated & Competent Personnel David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996 Day-To-Day/Operational Focus Classified - Internal use P E O P L E
  • 16. The Roles of HR Ulrich’s Four-Role Model Future/Strategic Focus Strategic Partner P R O C E S S E S • Develops & aligns strategies with biz • Assists line managers in solving organization, people & change-related issues • Contributes to management team’s strategic decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development Administrative Expert • Creates and delivers effective & efficient HR processes and services tailored to unique business needs • Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly deliver quality HR products and services Change Agent • Understands the organization’s culture & what is effective and ineffective • Institutionalizes change capability within the organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational effectiveness • Enhances management development Employee Champion • Develops strategies and helps implement actions that enhance human capital contribution • Helps build workforce commitment • Ensures fair, ethical, and equitable people processes and practices • VOE David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996 Day-To-Day/Operational Focus Classified - Internal use P E O P L E
  • 17. The Roles of HR Ulrich’s Four-Role Model Future/Strategic Focus Strategic Partner P R O C E S S E S • Develops & aligns strategies with biz • Assists line managers in solving organization, people & change-related issues • Contributes to management team’s strategic decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development Change Agent • Understands the organization’s culture & what is effective and ineffective • Institutionalizes change capability within the organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational effectiveness • Enhances management development when NOT done well… create a lot of issues Administrative Expert • Creates and delivers effective & efficient HR processes and services tailored to unique business needs • Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly deliver quality HR products and services Employee Champion • Develops strategies and helps implement actions that enhance human capital contribution • Helps build workforce commitment • Ensures fair, ethical, and equitable people processes and practices David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996 Day-To-Day/Operational Focus Classified - Internal use P E O P L E
  • 18. The Roles of HR Ulrich’s Four-Role Model Future/Strategic Focus Strategic Partner P R O C E S S E S • Develops & aligns strategies with biz • Assists line managers in solving organization, people & change-related issues • Contributes to management team’s strategic decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development Administrative Expert • Creates and delivers effective & efficient HR processes and services tailored to unique business needs • Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly deliver quality HR products and services Change Agent • Understands the organization’s culture & what is effective and ineffective • Institutionalizes change capability within the organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational effectiveness • Enhances management development Employee Champion • Develops strategies and helps implement actions that enhance human capital contribution • Helps build workforce commitment • Ensures fair, ethical, and equitable people processes and practices when done well give the organization a great strategic advantage David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996 Day-To-Day/Operational Focus Classified - Internal use P E O P L E
  • 19. HR as Strategic Partner Classified - Internal use
  • 20. HR as Strategic Partner Participates in designing & defining organization’s strategies Contributes to management team’s strategic decisionmaking Focuses on aligning HR strategies & practices with business strategy  translate business strategy into HR priorities Strategically manage people & infrastructure to support the execution of strategies & the creation of value Strategically manages workforce development Deliverable/outcome: Strategy execution Classified - Internal use
  • 21. HR as Strategic Partner Core Competencies HR as Strategic Partner should be able to: Facilitate strategy development for business teams by using different techniques Strategic Partner Core Competencies Business Mastery Plan and facilitate strategy deployment to the whole organization Personal Credibility Align the organization strategy with the business strategy to ensure it will be delivered HR Mastery Redesign the organization to support strategy Classified - Internal use
  • 22. HR as Strategic Partner Becoming A Strategic Business Partner Becoming A Strategic Business Partner Knowledge Requirements Bring strong technical Bring strong technical expertise to the table and an understanding of your company and its strategy. Develop new skills asas Develop new skills needed. Understand the data, the financials, the market, etc. Staying focused on Staying focused on issues that matter to issues that matter to the business the business Delivering capabilities that make a real difference What are the issues that What are the issues that matter? matter? What’s keeping business What’s keeping business leaders up at leaders up at night? night? What’s the “elephant on What’s the regarding the table” “elephant on the table” the future? regarding the bottom What drives the future? What drives the line? bottom business Focus on line? Focus on business objectives objectives Focus on environment Focus on environment Provide organizational Provide organizational capabilities as required by the business strategy objectives: People People Goal alignment Strategy Culture Culture Classified - Internal use
  • 23. HR as Strategic Partner Becoming A Strategic Business Partner Becoming a business partner sounds easy but in practice demands a shift in mindset and capability Being a Business Partner, it does not say anything about the strategic level. It does say alot something about the attitude and the relationship with the line – managers, the client. (“Working as a Business Partner, Rick Lash, HAYGROUP) Classified - Internal use
  • 24. HR as Strategic Partner Mindset Shift Becoming a true "player" on strategic business issues → able to challenge business leaders on their own ground Architect who can synthesize best practices e.g. Total Reward, Talent Management, OD, etc into integrated solutions and implement at speed Shifting from advising and consulting to challenging, provoking, confronting business leaders Letting go of the past and engaging with the future Classified - Internal use
  • 25. HR as Strategic Partner You are moving towards Strategic Partnering When… You are involved in discussions (by invitation!) on the "people implications" of a change or a new initiative in the organization before things go wrong Line Managers in confide in you about their concerns and problems, even when you are not providing a solution then and there Managers encourage you to tackle issues in their areas and express confidence in your ability to do things you may never have done before You engage in genuine dialogue with line managers The time frame of your work moves from present/past to future especially longer term future The "why” of what you is doing is very clear - in terms of organizational need (not "because we always do it/ have done it) Classified - Internal use
  • 26. In closing, here is a way of looking at the added value of HR Business Partnership. 1.FOCUS : HR Business Partners must have direct and focused activities. 2.ORGANIZE : Learn to translate the HR goals into structures, process and systems. 3.ACT : Identify needed behavior and skills to realize the Business Goals. Oliver C. Requilman, DBA, 5th September, 2013
  • 27. Oliver C. Requilman, DBA, 5th September, 2013
  • 28. FREQUENTLY ASKED QUESTIONS Is HR Business Partnership Model applicable to a simple – line organizational design? We are not a group of companies, how can we build up HR Business Partnership without the COE and Shared Services work stream? How different is HR Management from HR Business Partnership? We are a group of companies, when is the ideal time to start with Business Partnership Model? Can it operate as a separate SBU? Classified - Internal use