Transformation Of HR at AgustaWestland-Philadelphia


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Transformation Of HR at AgustaWestland-Philadelphia

  1. 1. THE TRANSFORMATION OF HUMAN RESOURCES <ul><li>BY </li></ul><ul><li>SAL LoDICO </li></ul>
  3. 3. Paradox: The Emerging Role of HR Is Not About HR <ul><li>It’s not about the various functional areas of HR management </li></ul><ul><ul><li>HR programs & services must be continue to be done & done well </li></ul></ul><ul><li>It is about achieving desired business outcomes (& thus creating value) through people </li></ul>
  4. 4. EVOLUTION OF HR FUNCTION <ul><li>Not part of business planning & decisions making processes </li></ul><ul><li>Created strategies disconnected to the business </li></ul><ul><li>Value proposition was “good service at reasonable cost” </li></ul><ul><li>Participates in, but only minor contributor to planning & decision making </li></ul><ul><li>Develops HR strategies somewhat connected to those of the business </li></ul><ul><li>Creates sound programs & services </li></ul><ul><li>Provides administrative excellence </li></ul><ul><li>Value proposition is “excellent service at best cost” </li></ul><ul><li>Understands the business & able to contribute to its planning & decision making </li></ul><ul><li>Creates people strategies linked directly to the business strategies & objectives </li></ul><ul><li>Serves as an agent for organizational change and increased effectiveness </li></ul><ul><li>Drives excellence in all people-related aspects </li></ul><ul><li>Value proposition is “provides organization with a competitive advantage through its people” </li></ul>HR as Strategic Business Partner HR Service & Program Excellence The Old HR
  5. 5. HR as a Business Partner Model* *Source: David Ulrich, Renowned HR Expert
  6. 6. CHANGE IN HR FUNCTION <ul><li>HR is changing in organizations because of new: </li></ul><ul><ul><li>Roles </li></ul></ul><ul><ul><li>Accountabilities </li></ul></ul><ul><ul><li>Competencies </li></ul></ul><ul><ul><li>Technology solutions </li></ul></ul><ul><ul><li>Models for accomplishing the work of HR </li></ul></ul>
  7. 7. “ People are our most important resource” <ul><li>Until recently was cliché </li></ul><ul><li>Now businesses recognizing people represent one of last & one of most important leverage points </li></ul>
  8. 8. Example of Seeing Trends: Workforce <ul><li>Smaller workforce pool to draw from </li></ul><ul><li>Increasingly global workforce </li></ul><ul><li>More diverse workforce </li></ul><ul><ul><li>Age, gender, education, skills, culture </li></ul></ul><ul><li>Changes in what is important to individuals </li></ul><ul><ul><li>Autonomy & empowerment </li></ul></ul><ul><ul><li>Meaningful work </li></ul></ul><ul><ul><li>Work life balance </li></ul></ul>
  9. 9. “ Connecting the Dots” between the Business Strategy & HR Business Strategy People Strategy HR Organization HR Strategy and Plan HR Capabilities <ul><li>What are our business goals? </li></ul><ul><li>What are the critical business outcomes to reach those goals? </li></ul><ul><li>How are going to achieve these goals? </li></ul><ul><li>What does the business need from our people to be successful? </li></ul><ul><li>What people outcomes must be achieved? </li></ul><ul><li>What are the obstacles to achieving our people priorities? </li></ul><ul><li>What must HR provide to enable the company to successfully deliver on our people priorities? </li></ul><ul><li>What will HR do to enable achieving of our people outcomes? </li></ul><ul><li>What is the most best way for HR to organize and deploy its resources? </li></ul><ul><li>What capabilities does HR need to enable the business to achieve our people strategy ? </li></ul>HR Metrics <ul><li>How will we measure progress and achievement? </li></ul>
  10. 10. 3 KEY QUESTIONS FOR HR TO ASK & ANSWER <ul><li>How does the business make money now? </li></ul><ul><li>How do people make money for us? </li></ul><ul><li>How do people cost us money? </li></ul>
  11. 11. Other Key Questions for HR to Ask & Answer How do people create the most value in our business? How does HR spending translate into business performance? How can people be a source of competitive advantage? What is our contribution to business outcomes? What HR operating model will deliver highest value for least cost?
  12. 12. Competitive Advantage <ul><li>Not just in differentiating a product or service </li></ul><ul><li>Not just in being the high quality, low cost provider </li></ul><ul><li>Not just in speed & flexibility </li></ul><ul><li>But in also being able to tap into the competency & creativity of our people to rapidly respond to: </li></ul><ul><ul><li>Customer needs </li></ul></ul><ul><ul><li>Competitor moves </li></ul></ul>
  13. 13. Strategic Human Resources Management <ul><li>WHAT : the linking of Human Resources with strategic goals and objectives </li></ul><ul><li>WHY : to improve business performance and develop an organizational culture that fosters innovation, flexibility, effectiveness (“doing the right things”) & efficiency (“doing things right”) </li></ul>
  14. 14. Organizational Culture <ul><li>Culture is the pattern of basic assumptions a given group has invented, discovered, or developed in learning to adapt both to its external and internal environments </li></ul><ul><li>Organizational culture is embedded and transmitted through mechanisms such as the following: </li></ul><ul><ul><li>Formal statements of organizational philosophy and materials used for recruitment, selection, and socialization of new employees </li></ul></ul><ul><ul><li>Promotion criteria </li></ul></ul><ul><ul><li>Stories, legends, and myths about key people and events </li></ul></ul><ul><ul><li>What leaders pay attention to, measure, and control </li></ul></ul><ul><ul><li>Implicit, and possibly unconscious, criteria that leaders use to determine who fits key slots </li></ul></ul>
  15. 15. Culture <ul><li>Determines how members relate to one another </li></ul><ul><li>Constitutes a collective perspective of organization members (values, beliefs, norms) </li></ul><ul><li>Shared by most members of the organization </li></ul><ul><li>Systematically &quot;passed along&quot; to new members </li></ul><ul><li>Shapes members' views of the organization and its purpose </li></ul><ul><li>Shapes members' views of the job and its purpose </li></ul>
  16. 16. Culture - Internally <ul><li>Provides sense of identity for members </li></ul><ul><li>Guides and controls behavior </li></ul><ul><li>Enhances internal cooperation </li></ul><ul><li>Guides decision-making </li></ul><ul><li>Enhances commitment </li></ul><ul><li>Provides justification for behavior </li></ul><ul><li>Allows anticipation of actions of others </li></ul>
  17. 17. Culture - Externally <ul><li>Influences how organization meets goals and deals with outsiders </li></ul><ul><li>Influences perceptions of the organization by outsiders </li></ul><ul><li>Guides and controls behavior with/of outsiders </li></ul><ul><li>Shapes expectations of outsiders </li></ul>
  18. 18. The Health of a Culture <ul><li>The healthy culture helps the organization adapt to the external environment & the associated internal environment </li></ul><ul><li>The unhealthy culture can drive the organization in the wrong direction and thus be dysfunctional </li></ul>
  19. 19. 6 Measures of HR Effectiveness <ul><li>6 . Healthcare costs per employee </li></ul><ul><li>5. Pay & benefits as % of Operating </li></ul><ul><li>Expenses </li></ul><ul><li>4. Time to fill & cost per hire </li></ul><ul><li>3. Turnover rate & cost </li></ul><ul><li>2. Employee satisfaction </li></ul><ul><li>1. Whatever means the most to our </li></ul><ul><li>CEO & Senior Leaders </li></ul>
  20. 20. Some Key Lessons Learned about Metrics <ul><li>Strategic Initiatives/Business Outcomes should clearly link to metrics </li></ul><ul><li>Metrics are as much about a means for communication as they are a means to measure </li></ul><ul><li>Metrics should be packaged differently for different audiences </li></ul><ul><li>“Dashboard” concept helps audience see “whole and parts” </li></ul>
  21. 21. To Fulfill the People Business Mandate HR Needs… <ul><li>Leadership and Vision of the senior HR person = Clear vision and defined value proposition </li></ul><ul><li>People Business Capability in HR Team </li></ul><ul><li>A compelling People Business Strategy in alignment with Business Strategies </li></ul><ul><li>HR strategy and metrics that clearly drive excellent execution in People Business </li></ul><ul><li>People Business operations model that enables & </li></ul><ul><li>ensures delivery of what’s needed when it’s needed </li></ul>
  22. 22. SEVEN CRITICAL HR COMPETENCIES <ul><li>Business acumen </li></ul><ul><li>Strategic thinking coupled with tactical execution </li></ul><ul><li>Leadership </li></ul><ul><li>Interpersonal skills </li></ul><ul><li>Communications </li></ul><ul><li>Technological savvy </li></ul><ul><li>HR subject matter expertise </li></ul>
  23. 23. Business Success <ul><li>Success occurs when…. </li></ul>
  24. 24. People Business Strategy: A Business Outcomes Approach <ul><li>Line of Sight/End in Mind </li></ul><ul><li>Measurement and Focus </li></ul><ul><li>Common Business Language </li></ul><ul><li>Simple and clear </li></ul><ul><li>Not HR “program” focused </li></ul><ul><li>About our business, not about our HR approach </li></ul>
  25. 25. Key Features of the Competitive Business Environment <ul><li>Globalization </li></ul><ul><li>Technology </li></ul><ul><li>E-Commerce </li></ul><ul><li>Changing demographics </li></ul><ul><li>Increasing cultural diversity </li></ul>
  26. 26. Competitive Strategies <ul><li>Competitive strategies of the 21st century company </li></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Quality Enhancement </li></ul></ul><ul><ul><li>Cost-Reduction </li></ul></ul><ul><ul><li>Responsiveness </li></ul></ul>
  27. 27. HR Management Requirements of Competitive Strategies <ul><li>Innovation Strategy Requires </li></ul><ul><ul><li>Highly Skilled Employees </li></ul></ul><ul><ul><li>More Employee Empowerment </li></ul></ul><ul><ul><li>Greater Investment and Risk </li></ul></ul><ul><li>Quality-Enhancement Strategy Requires </li></ul><ul><ul><li>Repetitive and predictable behaviors </li></ul></ul><ul><ul><li>Long-term focus </li></ul></ul><ul><ul><li>Modest amount of cooperative, interdependent behavior </li></ul></ul><ul><ul><li>High emphasis on quality, modest concern for quantity </li></ul></ul>
  28. 28. HR Management Requirements of Competitive Strategies <ul><li>Cost-Reduction Strategy Requires </li></ul><ul><ul><li>Tight fiscal and management controls </li></ul></ul><ul><ul><li>Minimization of overhead </li></ul></ul><ul><ul><li>Pursuit of strict economies of scale </li></ul></ul><ul><li>Speed Requires </li></ul><ul><ul><li>Highly skilled employees who are time-focused </li></ul></ul><ul><ul><li>Managers and employees must support change </li></ul></ul><ul><ul><li>Company culture must support the fast-pace </li></ul></ul>
  29. 29. Business Trends and Human Resources Competencies <ul><li>Human Resources must play four key roles that are consistent with current business trends: </li></ul><ul><ul><li>Strategic Partners </li></ul></ul><ul><ul><li>Innovators </li></ul></ul><ul><ul><li>Collaborators </li></ul></ul><ul><ul><li>Change Facilitators </li></ul></ul>
  30. 30. The Link Between Productivity and Profitability <ul><li>The Gallup Organization found that four management behaviors seem to underlie productive work places: </li></ul><ul><ul><li>Selecting for talent </li></ul></ul><ul><ul><li>Defining the right outcomes </li></ul></ul><ul><ul><li>Focusing on strengths </li></ul></ul><ul><ul><li>Finding the right fit </li></ul></ul>
  31. 31. Evolving Changes in Organizations <ul><li>Business Strategies Require More Teamwork </li></ul><ul><ul><li>In order to accomplish new, broadly defined goals, companies now rely on some form of team structure </li></ul></ul><ul><ul><li>Teamwork promotes flexibility, reduces operating costs, speeds responses to technological change, requires fewer job classifications, encourages better response to new worker values, and helps attract and retain top talent </li></ul></ul><ul><ul><li>Teamwork brings together employees with different knowledge and perspectives </li></ul></ul>
  32. 32. Evolving Changes in Organizations <ul><li>Mergers and Strategic International Alliances </li></ul><ul><ul><li>The ‘marriage’ of businesses with unique corporate cultures and customs makes the acceptance of diversity a must in the global market </li></ul></ul><ul><li>The Changing Labor Market </li></ul><ul><ul><li>The influx of more women, more immigrants, more people of color, and more older workers in the workforce in the next 25 years makes acceptance of diversity essential </li></ul></ul>
  33. 33. The Implications of Organizational Culture for Staffing Decisions <ul><li>Cultures vary across organizations; individuals will consider this information if it is available to them in their job-search process </li></ul><ul><ul><li>Recruiters assess person-job fit by focusing on specific knowledge, skills, and abilities; they assess person-organization fit by focusing more on values and personality characteristics </li></ul></ul><ul><ul><li>Linking staffing decisions to cultural factors may ensure employees have internalized the strategic intent and core values of the enterprise, making it more likely that they will act in the interest of the company and as dedicated team members, regardless of their formal job duties </li></ul></ul><ul><li>Individuals who choose jobs and organizations that are consistent with their own values, beliefs, and attitudes are more likely to be productive, satisfied employees </li></ul>
  34. 34. New HR - Competencies <ul><li>Change Management </li></ul><ul><li>Business / Strategy </li></ul><ul><li>HR </li></ul><ul><li>IT </li></ul><ul><li>Vendor Management </li></ul>
  35. 35. HR’s New Capability Requirements <ul><li>To deliver the strategic B2E vision HR will need to develop a new set of capabilities: </li></ul><ul><ul><li>Enhanced understanding of the business strategy and processes </li></ul></ul><ul><ul><li>CRM and branding: internal and external </li></ul></ul><ul><ul><ul><li>Data mining </li></ul></ul></ul><ul><ul><li>Technology fluency </li></ul></ul><ul><ul><li>Building and managing effective strategic supplier relationships </li></ul></ul><ul><ul><li>Knowledge management </li></ul></ul>
  36. 36. <ul><li>Summary of SHRM Study Findings </li></ul>
  37. 37. The Role of HR 82 54 55 A trusted advisor and key player in helping organization achieve business goals 88 57 51 Key in ensuring continued business success by identifying future leaders 90 73 62 Able to align employees with business goals by ensuring each understands contribution to org 92 68 64 Can help org effectively use resources, keep costs down, increase productivity and retention 87 71 66 Able to create employee loyalty to impact customer loyalty HR Professionals Senior Managers Executives % agree (either completely or somewhat)
  38. 38. HR’s Evolutionary Objective
  39. 39. Transforming HR <ul><li>Process </li></ul><ul><li>Silo </li></ul><ul><li>Internally focused </li></ul><ul><li>Heavily controlled </li></ul><ul><li>Tools </li></ul><ul><li>Manually intensive </li></ul><ul><li>Fragmented independent systems </li></ul><ul><li>Inaccessible data </li></ul><ul><li>People </li></ul><ul><li>Technical competence </li></ul><ul><li>Stand alone </li></ul>A dministrative C onsultative S trategic P artner <ul><li>Process </li></ul><ul><li>Cross-functional </li></ul><ul><li>Customer focused </li></ul><ul><li>Controls imbedded in technology </li></ul><ul><li>Tools </li></ul><ul><li>Intranet/Internet </li></ul><ul><li>Workforce Portal </li></ul><ul><li>Automated processes, </li></ul><ul><li>Integrated applications </li></ul><ul><li>Consistent and accessible data </li></ul><ul><li>People </li></ul><ul><li>Business acumen </li></ul><ul><li>Team players </li></ul>Time Current State Future State Value Added These roles are not independent. In order to move up the “matrix”, HR must first demonstrate excellence in administrative responsibilities for its customers.
  40. 40. Workforce Optimization Electronic Support Just-in-Time Learning Empowered Knowledgeable Employees Universal Access to Information Complex Answer Support Streamlined Resource Management Enterprise-wide Communications Reduced Overhead Informed Employees Learning Organization Efficient, Effective Employees Collaboration Tools Less paperwork & Administration Self-Service Applications
  41. 41. HR Is A Multi-Pronged Challenge <ul><li>Create service delivery model for HR operations </li></ul><ul><li>Define new roles and responsibilities for HR </li></ul><ul><li>Move to self-reliance through employee & manager self-service </li></ul><ul><li>Simplify and standardize </li></ul><ul><li>Automate transactional HR activities </li></ul><ul><li>Implement data consolidation, analysis, and mining </li></ul><ul><li>Select, build and deploy HR and portal applications </li></ul><ul><li>Prepare and manage infrastructure </li></ul>Technology Process People Organization
  42. 42. STRATEGIC HUMAN RESOURCE MANAGEMENT <ul><li>The linkage of HRM with the organization’s strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility </li></ul>
  43. 43. THE STRATEGIC VIEW OF HUMAN RESOURCES <ul><li>Employees are human assets that increase in value to the organization and the marketplace when investments of appropriate policies and programs are applied. </li></ul><ul><li>Effective organizations recognize that their employees do have value, much the same as the organization’s physical and capital assets have value. </li></ul><ul><li>Employees are a valuable source of sustainable competitive advantage. </li></ul>
  44. 44. STRATEGIC HUMAN RESOURCES MANAGEMENT <ul><li>Involves the development of a consistent, aligned collection of practices, programs, and policies to facilitate the achievement of the organization’s strategic objectives. </li></ul><ul><li>Requires abandoning the mindset and practices of “personnel management” and focusing on strategic issues than operational issues. </li></ul><ul><li>Integration of all HR programs within a larger framework, facilitating the organization’s mission and its objective. </li></ul>
  45. 45. BENEFITS OF A STRATEGIC APPROACH TO HR <ul><li>Facilitates the development of a high quality workforce through its focus on the types of people and skills needed. </li></ul><ul><li>Facilitates cost effective utilization of labor, particularly in service industries where labor is generally the greatest cost. </li></ul><ul><li>Facilitates the planning and assessment of environmental uncertainty and the adaptation of the organization to the external forces that impact the organization. </li></ul>
  46. 46. BARRIERS TO STRATEGIC HR <ul><li>Short term mentality/focus on current performance </li></ul><ul><li>Inability of HR to think strategically </li></ul><ul><li>Lack of appreciation of what HR can contribute </li></ul><ul><li>Failure to understand general manager’s role as an HR manager </li></ul><ul><li>Difficulty in quantifying many HR outcomes </li></ul><ul><li>Perception of human assets as higher risk investments </li></ul><ul><li>Incentives for change that might arise </li></ul>
  47. 47. STRATEGIC MANAGEMENT <ul><li>Strategic Human Resources Management </li></ul><ul><ul><li>Involves aligning initiatives involving how people are managed with the organizational mission and objectives </li></ul></ul><ul><li>Strategic Management Process </li></ul><ul><ul><li>Determining what needs to be done (how) to achieve corporate objectives over a three to five year time span </li></ul></ul><ul><ul><li>Examining the organization and the competitive environment </li></ul></ul><ul><ul><li>Establishing a strategic (optimal) “fit” between the organization and its environment that engenders success </li></ul></ul><ul><ul><li>Reviewing and revising the strategic plan as necessary </li></ul></ul>
  48. 48. TRADITIONAL vs. STRATEGIC HR MANAGEMENT HR supports strategy mutually defined with line managers. Role of line managers down played in deference to HR specialists Roles Strategies unify programs into a board, integrated framework HR programs and policies viewed in isolation Framework Business driven, focused on organizational effectiveness, staff viewed as resources to be managed to achieve strategic goals Individual HR outcomes as ends in and of themselves Focus Formulated by senior staff Handled by mid-level HR specialists Organization STRATEGIC TRADITIONAL AREA
  49. 49. MULTIPLE HR ROLES <ul><li>Strategic Partner </li></ul><ul><ul><li>Partners with Management </li></ul></ul><ul><ul><li>Risk Alienating Employees </li></ul></ul><ul><li>Employee Champions </li></ul><ul><ul><li>Partnership with Management and Staff </li></ul></ul><ul><ul><li>Risk Alienating Management </li></ul></ul><ul><li>Change Agents </li></ul><ul><ul><li>Balance Need for Change and Innovation with Need for Continuity and Stability </li></ul></ul><ul><li>Administrative Experts </li></ul><ul><ul><li>Re-engineering of Business Processes </li></ul></ul><ul><ul><li>Apply Administrative Expertise in HR Processes </li></ul></ul>
  50. 50. NEW EMPLOYEE/WORKPLACE DYNAMICS <ul><li>Emphasis on the Management of Professionals </li></ul><ul><ul><li>Establishment of separate career tracks </li></ul></ul><ul><ul><ul><li>Technical/Professional, Managerial/Administrative </li></ul></ul></ul><ul><ul><li>Use of project teams </li></ul></ul><ul><li>Less Employee Loyalty, More Loyal Staff </li></ul><ul><ul><li>Staying with employers for shorter periods; demanding more meaningful work and involvement in organizational decisions </li></ul></ul><ul><li>Increased Personal and Family Dynamic Effects </li></ul><ul><ul><li>More single parent families, dual career couples and domestic partners </li></ul></ul><ul><li>Increased Nontraditional Work Relationships </li></ul><ul><ul><li>Part-time, consulting and temporary employment flexibility </li></ul></ul><ul><ul><li>Outsourcing and entrepreneurial opportunities </li></ul></ul>
  51. 51. HR IMPLICATIONS FOR PROFITABILITY <ul><li>Create a culture committed to rapid growth while controlling costs </li></ul><ul><li>Hire staff that can grow the business while at same time controlling labor costs </li></ul><ul><li>Create an environment and structure that provides both autonomy for growth and discipline </li></ul>
  52. 52. ULTIMATE GOAL <ul><li>Align the goals, incentives, and skills of the workforce with the organization’s strategy. </li></ul>
  53. 53. HR’S ROLE IN ORGANIZATIONAL EXCELLENCE <ul><li>HR can help deliver organizational excellence by becoming: </li></ul><ul><ul><li>A partner with senior and line managers in strategy execution </li></ul></ul><ul><ul><li>An expert in the way work is organized, delivering administrative efficiency to ensure that costs are reduced while quality is maintained </li></ul></ul><ul><ul><li>A champion for employees, representing their concerns to senior management and working to increase employee contributions </li></ul></ul><ul><ul><li>An agent of continuous transformation by shaping processes and organizational culture </li></ul></ul>
  54. 54. FUNCTIONAL ROLE FOR HR <ul><li>HR must focus on business level outcomes rather than HR level inputs </li></ul><ul><li>HR must become a strategic core competency rather than a market follower </li></ul><ul><li>Strategic competencies are more important than functional competencies </li></ul><ul><li>The most important missing element in the HR function expertise is a systems perspective </li></ul>
  55. 55. Our HR Team must: <ul><li>Shift focus from activity to adding value </li></ul><ul><li>Be able to demonstrate, in quantifiable terms, that we are adding value </li></ul><ul><li>Accurately recognize & plan for changes in the business landscape </li></ul><ul><li>Manage Human Resources like a business. </li></ul><ul><ul><li>Clear outcomes we deliver to the business </li></ul></ul><ul><li>Build an infrastructure </li></ul><ul><li>Model cultural changes in the organization </li></ul><ul><li>Have clear roles, responsibilities & objectives for every HR Team member </li></ul>
  56. 56. 10 Keys to Success – Short Term <ul><li>Know & meet our customer requirements better </li></ul><ul><ul><ul><li>Supervisors, managers & senior leaders </li></ul></ul></ul><ul><ul><ul><li>Employees </li></ul></ul></ul><ul><li>Improve & document our processes </li></ul><ul><ul><ul><li>For ourselves </li></ul></ul></ul><ul><ul><ul><li>For our customers </li></ul></ul></ul><ul><li>Be easier to interact with from employees & managers perspectives </li></ul><ul><li>Leverage technology & 3 rd parties </li></ul><ul><li>Plan & prioritize better & then execute </li></ul><ul><li>Improve keeping of commitments </li></ul><ul><li>Create HR metrics so we know how we’re doing </li></ul><ul><li>Improve of HR competencies & expertise </li></ul><ul><li>Be more accurate in information & communications </li></ul><ul><li>Recruit…Recruit…Recruit the talent needed within AAC </li></ul>
  57. 57. What is Our HR Team’s Readiness for the Challenges of the Present & the Future? Partially Ready Not Ready Ready