MOVING FROM OPERATIONAL TO STRATEGIC
THINKER
Marius Meyer, CEO: SABPP
12 June 2014
marius@sabpp.co.za
@MariusSABPP & @SABP...
Do you see the bigger picture?
Agenda
• Part A: HR trends and best practices
• Part B: State of HR profession
• Part C: HR Competency Model & National HR...
The role of HR …
• Identifying talent issues before they impact the
business
• Adjusting HR strategies to respond to changing
business need...
Part A:
HR Trends & Best Practices
Where is HR going globally and in South Africa?
What are the major HR trends and best p...
PARADIGM SHIFT
OPERATIONAL MINDSET
• Day-to-day tasks
• Transactional HR
• Getting things done
• Crisis reactive managemen...
IBM CEO Study 2012:
Factors impacting organisations
1 Technology factors (71%)
2 People skills (69%)
3 Market factors (68%...
HR Trends
• HR as Strategic Partner and Talent Management
• HR Governance
• HR Risk Management
• New role to impact ethics...
HR manager’s response to
metrics?
Biggest Opportunities for HR
IBM: Working beyond Borders
• Cultivating creative leaders
• Mobilising for greater speed and...
Most important organisational
capabilities over the next five years
IBM: Working beyond Borders
31%
33%
34%
37%
28% 30% 32...
Most important leadership qualities
over the next five years
IBM: Working beyond Borders
35%
52%
60%
0% 10% 20% 30% 40% 50...
Part B:
State of HR Profession in SA
What is the current state of HR in SA?
Top facts about HR
• Human Capital is the biggest concern for
CEOs (PwC).
• Only 18% of CEOs feel confident that they
have...
More facts about HR
• SA losing R12 billion a year due to absenteeism.
• Only 5% of employees understand business
strategy...
SABPP Professional Values
RESPONSIBILITY
I
RESPECT
INTEGRITY
COMPETENCE
SABPP BENEFITS
RECOGNITION =
PROFESSIONAL STATUS
RESOURCES =
PRODUCTS/SERVICES
RESEARCH =
INFORMATION
• Professional regis...
Professional registration levels
• M/D degree + 6 years top level experience
• LoW = executive level
MHRP
(Master)
CHRP
(C...
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
❶ Strategic
HRM
❷ Talent
Management
❸ HR Risk
Management
HR ARCHITECTURE
HR VALU...
STRATEGIC HR
MANAGEMENT STANDARD
DEFINITION
Strategic HR Management is a systematic
approach to developing and implementin...
STRATEGIC HRM STANDARD ELEMENT:
IMPLEMENTATION
Framework of
HR policies &
programmes
Environmental
scan (PESTL)
HR structu...
HR/Line relationship?
HR RISK MANAGEMENT
DEFINITION
HR Risk Management is a systematic
approach of identifying and addressing people
factors (un...
LIFE IS ABOUT RISKS – THE HUMAN LIFE CYCLE
FIRST 20 YEARS
1 – 18 years
19 – 21 years
MIDDLE 40 YEARS
Death
Before birth
LA...
Importance of HR Risk
Dave Beretti, City of Cape Town
“In any organisation
people are the single most
valuable asset, but ...
Risk + readiness
SABPP HR Risk Study
Source: SABPP (2010)
H R R I S K S – 8 African countries
• Safety - accidents
• Skills shortages/gaps
• Incompetence
• Employee
disengagement
•...
HR Risk example
HR RISK MANAGEMENT PROCESS
Assessment of
risk tolerance
for each risk
Identify and
evaluate impact of
HR risks
HR practice...
Wors Analysis
Wors Analysis
WEAKNESSES
• Low visibility of HR
• Poor communication
• Lack of technology
• Low satisfaction levels
OPPORT...
Do you manage HR risk?
Part C:
HR Competencies
What competencies do we need to deliver world-
class HR work?
Competency levels of the top 10
HR priorities
Priority Area
Priority
Weight
Competency
Weight
Priority
Rank
Competency
Ran...
HR COMPETENCY HOUSE
SOUTH AFRICAN HR COMPETENCY MODEL
STRATEGY
TALENT
MANAGEMENT
HR GOVERNANCE, RISK,
COMPLIANCE
ANALYTICS & MEASUREMENT
HR SE...
How to become a strategic thinker
• Study the strategy of your business
• Study the strategies of other businesses
• Read ...
National HR Governance Strategy Alignment
HR Professional Standards:
• HRMS (13)
• HRMSAS (13)
• HRPPS (30+)
HR Products/S...
Top management perspective
“The human resource professional in
an organisation needs to be an
integral part of the leaders...
HR excellence: It is all about alignment
Conclusion
HR professionals need to move from an
operational to a strategic mindset. Join us on
the journey towards high i...
Let us rise to the challenge and
deliver strategic HR excellence
SABPP BLOG
For regular updates join our special
HR Standards Blog:
www.hrtoday.me
Let us build a great HR profession!
professional@sabpp.co.za (Professional Registration)
kenneth@sabpp.co.za (Stakeholder ...
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Strategic thinking 12_jun_2014

  1. 1. MOVING FROM OPERATIONAL TO STRATEGIC THINKER Marius Meyer, CEO: SABPP 12 June 2014 marius@sabpp.co.za @MariusSABPP & @SABPP1
  2. 2. Do you see the bigger picture?
  3. 3. Agenda • Part A: HR trends and best practices • Part B: State of HR profession • Part C: HR Competency Model & National HR Standards
  4. 4. The role of HR …
  5. 5. • Identifying talent issues before they impact the business • Adjusting HR strategies to respond to changing business needs • Understanding how HR business partners can support the business The results of our research indicated that our top three priority CCR’s include the following: SABPP Strategic Vision “To Professionalise the HR Profession” SABPP - ETQA SABPP – Registration Committee HRD Committee Business Leader’s Expectations OR Critical Customer Requirements (CCR’s) Key HR Business Partner Outputs Competencies CareerPaths LearningSolutions SABPP Strategic Vision “To Professionalise the HR Profession” SABPP - ETQA SABPP – Registration Committee HRD Committee Business Leader’s Expectations OR Critical Customer Requirements (CCR’s) Key HR Business Partner Outputs Competencies CareerPaths LearningSolutions 1Communicating organisational culture/values to Employees 1Keep abreast of new legislation that may impact on business 1Preparing for different situations 2Responding to organisational changes 2Managing conflict between managers 2Assessing Employee attitudes 3Enforcing standard HR policies and procedures 3Resolving political problems in the execution of business plans 4Respond to manager needs 4Retention of talent within the business 5Capacity building/Skills development 6Quickly responding to employee needs 6Communication around HR in general 11Tracking trends in employee behaviours and attitudes. 11Keep the line updated on HR initiatives 13Prioritizing across HR Needs 25Utilising new business strategies 30Developing the next generation of leaders 32Identifying talent issues before they can impact on the business 35Identifying HR Metrics 42Adjusting HR strategies to respond to changing business needs 43Understanding how HRB’s can support the business 48Redesigning Organisational Structure around strategic objectives 54Understanding the Talent needs of the business TOTALCCR 1Communicating organisational culture/values to Employees 1Keep abreast of new legislation that may impact on business 1Preparing for different situations 2Responding to organisational changes 2Managing conflict between managers 2Assessing Employee attitudes 3Enforcing standard HR policies and procedures 3Resolving political problems in the execution of business plans 4Respond to manager needs 4Retention of talent within the business 5Capacity building/Skills development 6Quickly responding to employee needs 6Communication around HR in general 11Tracking trends in employee behaviours and attitudes. 11Keep the line updated on HR initiatives 13Prioritizing across HR Needs 25Utilising new business strategies 30Developing the next generation of leaders 32Identifying talent issues before they can impact on the business 35Identifying HR Metrics 42Adjusting HR strategies to respond to changing business needs 43Understanding how HRB’s can support the business 48Redesigning Organisational Structure around strategic objectives 54Understanding the Talent needs of the business TOTALCCR
  6. 6. Part A: HR Trends & Best Practices Where is HR going globally and in South Africa? What are the major HR trends and best practices?
  7. 7. PARADIGM SHIFT OPERATIONAL MINDSET • Day-to-day tasks • Transactional HR • Getting things done • Crisis reactive management • Doing things now • Training for tasks • Managing people • Internal focus • Short-term measures STRATEGIC THINKING • Long term priorities • Transformational HR • Creating value • Proactive management • Planning things for future • Organisational capability • Leading people • External focus • Strategic measures - metrics
  8. 8. IBM CEO Study 2012: Factors impacting organisations 1 Technology factors (71%) 2 People skills (69%) 3 Market factors (68%) 4 Macro-economic factors 5 Regulatory concerns 6 Globalisation 7 Socio-economic factors 8 Environmental issues 9 Geopolitical factorsIBM CEO Study 2012
  9. 9. HR Trends • HR as Strategic Partner and Talent Management • HR Governance • HR Risk Management • New role to impact ethics in organisations • HR contribution to CSR and socio-economic situation - sustainability • HR Technology and Social Media • HR standards and metrics – integrated reporting • HR Competency models - professionalism
  10. 10. HR manager’s response to metrics?
  11. 11. Biggest Opportunities for HR IBM: Working beyond Borders • Cultivating creative leaders • Mobilising for greater speed and flexibility • Capitalising on collective intelligence i.e. collaboration
  12. 12. Most important organisational capabilities over the next five years IBM: Working beyond Borders 31% 33% 34% 37% 28% 30% 32% 34% 36% 38% Innovation Client connectivity Execution speed Leadership
  13. 13. Most important leadership qualities over the next five years IBM: Working beyond Borders 35% 52% 60% 0% 10% 20% 30% 40% 50% 60% 70% Ability to balance work and life demands Integrity Creativity
  14. 14. Part B: State of HR Profession in SA What is the current state of HR in SA?
  15. 15. Top facts about HR • Human Capital is the biggest concern for CEOs (PwC). • Only 18% of CEOs feel confident that they have the right people in place to execute strategy (CEB). • Human Capital is the biggest risk in business (HCI Africa). • Skills crisis is the top obstacle to economic growth. • Strikes cost SA R197 million per day.
  16. 16. More facts about HR • SA losing R12 billion a year due to absenteeism. • Only 5% of employees understand business strategy. • World-wide only 13% of employees actively engaged. • Companies with engaged employees outperform others by 202% (Dale Carnegie). • Companies with good HR Practices outperform others by treating HR as critical business function, these companies are 105% more profitable. • Average ROI on wellness programmes: 300%.
  17. 17. SABPP Professional Values RESPONSIBILITY I RESPECT INTEGRITY COMPETENCE
  18. 18. SABPP BENEFITS RECOGNITION = PROFESSIONAL STATUS RESOURCES = PRODUCTS/SERVICES RESEARCH = INFORMATION • Professional registration • NLRD Upload (SAQA) • RPL • Awards • Advocacy • HR Assessors/Moderators registration • Accreditation of providers • University accreditation • HR Competency Model • Social media discussions • Knowledge Centre • Booklets/DVDs • Guides/toolkits • Charts/posters • Fact sheets • One-stop info • Updates (laws) • Ethics help-line • Newsletters • Website • HR Internships/jobs • HR policies • Mentoring • Workshops/seminars • Access to alliances • CPD • Students • Research papers • Position papers • Books • Articles • Cases • Benchmarking • Magazines • Labour market information
  19. 19. Professional registration levels • M/D degree + 6 years top level experience • LoW = executive level MHRP (Master) CHRP (Chartered) • Degree/ND + 3 years experience • LoW = middle management HRP (Professional) HRA (Associate) • Certificate + 1 year experience • LoW = entry HRT (Technician) • Hons degree + 4 years sr experience • LoW = senior management • 2 year dip + 2 years experience • LoW = junior level
  20. 20. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT ❶ Strategic HRM ❷ Talent Management ❸ HR Risk Management HR ARCHITECTURE HR VALUE & DELIVERY PLATFORM ❹ Work- force planning ❺ Learning ❻ Perfor- mance ❼ Reward ❽ Well- ness ❾ ERM ❿ OD ⓫ HR Service Delivery ⓬ HR Technology (HRIS) Prepare Imple- ment Review Improve⓭ HR MEASUREMENT HR Audit: Standards & Metrics HRCOMPETENCIES SABPP HRM SYSTEM STANDARDS MODEL
  21. 21. STRATEGIC HR MANAGEMENT STANDARD DEFINITION Strategic HR Management is a systematic approach to developing and implementing long-term HRM strategies, policies and plans that enable the organisation to achieve its objectives. SABPP (2013)
  22. 22. STRATEGIC HRM STANDARD ELEMENT: IMPLEMENTATION Framework of HR policies & programmes Environmental scan (PESTL) HR structure, service model and capability development People strategy HR strategic agenda Organisation’s strategic intent HR strategic agenda HR business plan People strategy Allocate roles & responsibilities (line/HR/support functions) MONITOR & EVALUATE
  23. 23. HR/Line relationship?
  24. 24. HR RISK MANAGEMENT DEFINITION HR Risk Management is a systematic approach of identifying and addressing people factors (uncertainties and opportunities) that can either have a positive or negative effect on the realisation of the objectives of an organisation. SABPP (2013)
  25. 25. LIFE IS ABOUT RISKS – THE HUMAN LIFE CYCLE FIRST 20 YEARS 1 – 18 years 19 – 21 years MIDDLE 40 YEARS Death Before birth LAST 20 - 40 YEARS 0 – 2 years Retirement
  26. 26. Importance of HR Risk Dave Beretti, City of Cape Town “In any organisation people are the single most valuable asset, but if badly managed, they can become the organisation’s greatest liability.”
  27. 27. Risk + readiness
  28. 28. SABPP HR Risk Study Source: SABPP (2010)
  29. 29. H R R I S K S – 8 African countries • Safety - accidents • Skills shortages/gaps • Incompetence • Employee disengagement • Strikes & poor employment relationships • Fraud/corruption • Stress • Staff turnover • Low staff satisfaction – impact on customer satisfaction • Cyber security • Conflict/disputes • Diversity problems • Sexual harassment • Expatriate issues • Non-compliance
  30. 30. HR Risk example
  31. 31. HR RISK MANAGEMENT PROCESS Assessment of risk tolerance for each risk Identify and evaluate impact of HR risks HR practices, programmes, metrics to manage risks HR Risk Map HR Risk Register Organisation’s risk management structures and processes HR Risk Register HR Risk Management Plan HR Risk Map MONITOR & EVALUATE
  32. 32. Wors Analysis
  33. 33. Wors Analysis WEAKNESSES • Low visibility of HR • Poor communication • Lack of technology • Low satisfaction levels OPPORTUNITIES • Local skills development • Stronger talent pipeline • Alliances in countries • E-learning RISKS • Safety of staff • Political risk - countries • Regulatory challenges • Capacity to deliver • Employee retention STRENGTHS • Good learning centre • Clear talent pools • Ethical culture • Sound leadership • Great team of expats
  34. 34. Do you manage HR risk?
  35. 35. Part C: HR Competencies What competencies do we need to deliver world- class HR work?
  36. 36. Competency levels of the top 10 HR priorities Priority Area Priority Weight Competency Weight Priority Rank Competency Rank Creating a high-performance culture / Performance management 3.91 3.42 1 6 Leadership and management development 3.79 3.36 2 8 Skills development 3.77 3.58 3 3 Focus on corporate values, ethics 3.71 3.45 4 4 Industrial / Employee relations 3.69 3.70 5 2 Customer service / relations 3.68 3.43 6 5 Employee engagement 3.68 3.35 7 9 Change management 3.68 3.22 8 16 Crafting and implementing HR strategy 3.64 3.40 9 7 HR policies and procedures 3.62 3.71 10 1 HR Survey (2011)
  37. 37. HR COMPETENCY HOUSE
  38. 38. SOUTH AFRICAN HR COMPETENCY MODEL STRATEGY TALENT MANAGEMENT HR GOVERNANCE, RISK, COMPLIANCE ANALYTICS & MEASUREMENT HR SERVICE DELIVERY 5 HR CAPABILITIES LEADERSHIP & PERSONAL CREDIBILITY ORGANISATIONAL CAPABILITY SOLUTION CREATION & IMPLEMENTATION INTERPERSONAL & COMMUNICATION CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY CORE COMPETENCIES HR & BUSINESS KNOWLEDGE DUTY TO SOCIETY ETHICS PROFESSIONALISM 4 PILLARS
  39. 39. How to become a strategic thinker • Study the strategy of your business • Study the strategies of other businesses • Read more about strategy – FM, HBR • Internalise the annual report of your company • Identify HR opportunities from the strategy • Put your strategy on one page • Develop an HR Risk Framework • Do proper HR analytics and metrics
  40. 40. National HR Governance Strategy Alignment HR Professional Standards: • HRMS (13) • HRMSAS (13) • HRPPS (30+) HR Products/Services: • CPD • Mentoring • Professional registration • Research • HR Academy – QCTO • Curriculum standards HR Metrics: • National HR Scorecard • HR Service Standards HR Auditing: • Internal Audit • External Audit King IV: HR Governance ISO: HR Integrated Reporting HR Competencies
  41. 41. Top management perspective “The human resource professional in an organisation needs to be an integral part of the leadership and the ‘right hand’ of the chief executive. Establishing and sustaining an ethical ethos, the HR professional must work closely with the executive leadership team to define and promote the culture of an organisation based on the underlying values and then entrench the culture through all the touch points in the human capital value chain.” Edward Kieswetter, CEO: Alexander Forbes
  42. 42. HR excellence: It is all about alignment
  43. 43. Conclusion HR professionals need to move from an operational to a strategic mindset. Join us on the journey towards high impact strategic HR thinking, plans and results.
  44. 44. Let us rise to the challenge and deliver strategic HR excellence
  45. 45. SABPP BLOG For regular updates join our special HR Standards Blog: www.hrtoday.me
  46. 46. Let us build a great HR profession! professional@sabpp.co.za (Professional Registration) kenneth@sabpp.co.za (Stakeholder Relations) penny@sabpp.co.za (Research) naren@sabpp.co.za (Learning & Quality) marius@sabpp.co.za (Strategy inputs) voice@sabpp.co.za (Social media) Website : www.sabpp.co.za New office: 8 Sherborne Str, Parktown Tel: 011 482-8595 Fax: 011 482-4830 Cel: 082 859 3593 (Marius Meyer)
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