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Creating the high performance enterprise

Creating the high performance enterprise

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Global hr forum2007-tim ringo-creating the high performance enterprise Global hr forum2007-tim ringo-creating the high performance enterprise Presentation Transcript

  • IBM Global Business Services Creating The High Performance Enterprise Unlocking the DNA of the Adaptable Workforce Tim Ringo Global Leader Human Capital Management © Copyright IBM Corporation 2007
  • IBM Global Business Services IBM Human Capital Management We have a practice of over 2,000 human capital professionals in 42 countries experienced in developing and delivering proven talent management solutions leveraging a global delivery model To understand today’s top HR and Learning issues and develop tomorrow’s solutions, we invest heavily in research and thought leadership: - Institute for Business Value (IBV) - Institute for Learning and Organizational Performance - Global Human Capital Study 2008
  • IBM Global Business Services Three primary forces are driving organizations to think more strategically about how to create high performance workforces Changing Workforce Demographics Globalization of Work Aging Population Generational Differences The Challenge of Creating the Adaptive Workforce Developing an Adaptable Workforce – A Critical Capability Revealing The Leadership Gap –Future Growth at Risk Cracking the Code for Talent Driving Growth Through Workforce Analytics The Challenge of Creating Strategic HR Establishing Board Room Credibility Shift to Workforce and Talent Management Issues View slide
  • IBM Global Business Services Three primary forces are driving organizations to think more strategically about how to create high performance workforces Changing Workforce Demographics Globalization of Work Aging Population Generational Differences The Challenge of Creating the Adaptive Workforce Developing an Adaptable Workforce – A Critical Capability Revealing The Leadership Gap –Future Growth at Risk Cracking the Code for Talent Driving Growth Through Workforce Analytics The Challenge of Creating Strategic HR Establishing Board Room Credibility Shift to Workforce and Talent Management Issues View slide
  • IBM Global Business Services Globalization New corporate competencies are required to operate in today’s global environment Secures unique value Makes informed choices via specialization in a within a global network of open competitive market partners The Globally Leverages the power Taps into a universe of of global assets Integrated modular services Enterprise Embraces open Operates seamlessly collaboration and across boundaries via knowledge sharing global values, skills and practices processes “The globally integrated enterprise will require fundamentally different approaches to production, distribution, and work-force deployment….New kinds of managerial skills are also needed.” - Sam Palmisano, Foreign Affairs, 2006
  • IBM Global Business Services Changing Workforce Demographics: Korea is facing many of the same demographic challenges as many other developed nations Korea’s Aging Workforce In 2005, the number of workers over 50 exceeded six million for Korean Working Population the first time. It is estimated that 27.60% 27.70% approximately 20% of the 30% 26.50% Korean population will be over 25% 65 by the year 2025 18.20% 20% More than 30% of those in their 15% 50s are currently unemployed and have given up their search 10% for work 5% According to the Korea 0% Association of Retired People, under 30 30s 40s over 50 84% of those aged 50 or more believe that the most reasonable age is 65 or older Source: Korea Insight, Korea Economic Institute, Volume 8, Number 8, August 2006; Solomon, Stuart, “Living Longer, Working Longer in Aging Korea,” Korea Times, August 29, 2006
  • IBM Global Business Services Changing Workforce Demographics “I’ll have someone from my generation get in touch with someone from your generation.”
  • IBM Global Business Services Three primary forces are driving organizations to think more strategically about how to create high performance workforces Changing Workforce Demographics Globalization of Work Aging Population Generational Differences The Challenge of Creating the Adaptive Workforce Developing an Adaptable Workforce – A Critical Capability Revealing The Leadership Gap –Future Growth at Risk Cracking the Code for Talent Driving Growth Through Workforce Analytics The Challenge of Creating Strategic HR Establishing Board Room Credibility Shift to Workforce and Talent Management Issues
  • IBM Global Business Services 2008 Global Human Capital Study
  • IBM Global Business Services We interviewed over 400 companies from 40 countries to understand how organizations are improving workforce performance Project objectives Project methodology • Understand how organizations are • Interviews with 404 Chief Human transforming their workforces to Resources officers and senior HR compete more effectively in today’s executives (over 75% conducted face- to-face) business environment • 40 countries across Asia Pacific, Europe, • Identify leading practices and Latin America, and North America opportunities for organizations to improve their overall workforce • Mix of industries and organization sizes performance • Combination of quantitative and qualitative survey information, as well as financial data, secondary research, case studies and client experience
  • IBM Global Business Services Enhancing workforce performance in today’s turbulent business environment requires four key components An adaptable workforce that can rapidly respond to changes in the outside market Effective leadership to guide individuals through change and deliver results An integrated talent management model that addresses the entire employee lifecycle Workforce analytics that can deliver strategic insight and measure success
  • IBM Global Business Services Developing an Adaptable Workforce – A Critical Capability
  • IBM Global Business Services Multiple forces drive the need to develop a workforce that is able to adapt to changing business conditions Security Concerns New Business Globalization Models Workforce Adaptability Changing Market Demographics Volatility Global Competition “Businesses change every day, and the development of a workforce who can cope with change is not easy.” - Japanese transportation company Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Only a small number of companies believe their workforce is “very capable” of adapting to change How would you rate your workforce’s ability to adapt to potential changes in the business environment? 53% 30% 14% 3% 0% Very capable Generally Somewhat Not capable of Don't know of adapting to capable of capable of adapting to change adapting to adapting to change change change Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Developing the ability to predict future skills, identify expertise, and foster collaboration can help build an adaptable workforce Characteristics of companies indicating their workforce “Very capable of adapting to changing business conditions” Able to predict 80% Very adaptable to future skills 56% change All other companies Effective in 74% locating experts 55% Effective in 72% collaboration 49% Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services The primary barriers to collaboration appear to be organizational, rather than technical in nature How significant are the following barriers to collaboration across your organization? Organizational silos inhibit 15% 27% 29% 20% 7% collaboration Individuals are too busy to assist 9% 31% 34% 15% 10% others across the organization Performance measures not aligned to reward individuals for collaboration 12% 25% 24% 19% 20% Technological tools do not effectively support collaboration 8% 20% 28% 22% 22% Collaboration not viewed as important 9% 12% 20% 21% 37% Concerns about intellectual property limit effective collaboration 3% 9% 14% 22% 51% [1] Very significant [2] [3] [4] [5] Not at all significant [6] NA or Don't know Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Organizations looking to improve their workforce adaptability should focus on three areas • Create a formal process to anticipate the Predict future skills projected demand for skills needed to deliver on the business strategy • Develop an expertise location capability that combines formal skills management Locate expertise efforts with employee profiles and other social networking technologies • Foster collaboration through communities, performance measures and embedding Collaborate collaborative technologies into day-to-day processes Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services The Leadership Gap – Placing Future Growth at Risk
  • IBM Global Business Services Organizations are finding themselves with a shortage of individuals who can provide leadership and drive business results Global Expansion Maturing Workforce “We are…expanding geographically to “Fifty percent of our leadership positions become more international and we need across the organization could be vacated leadership in these new areas. Basically, we in the next five years, so the need to build are trying to develop bench strength to leaders and pass knowledge on is position ourselves for growth.” consistent across the organization.” - Manufacturing company - Government agency Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Organizations are clearly concerned with their current and future leadership capability What do you see as the primary capability challenges facing your organization? Building leadership talent 76% Fostering a culture that supports learning and development 39% Rotating leadership talent across business units/geographies 36% Passing on knowledge from older to younger employees 28% Forecasting needed skills in the near future 26% Cross-training individuals needed in other parts of the organization 25% Rapidly getting new employees up to speed 24% Developing basic skills across the employee base 17% Measuring the effectiveness of learning and development activities 15% “The magic ingredient of any organization is leadership.” Source: IBM Global Human Capital Study 2008. - CHRO, consumer products company
  • IBM Global Business Services Leadership development requires more than “dipping” people in executive education courses • Manage potential leadership pools on a Think global global basis • Enable future leaders to guide virtual teams of Recognize the need employees who come from a diverse set of for new skills backgrounds and cultures Go beyond the • Incorporate action learning, mentoring and job rotation into leadership development programs classroom • Avoid losing future leaders to the outside market by Provide future providing them with opportunities to apply their opportunities new-found skills Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Case Example: Answering the need for leadership excellence at Maybank Challenge Outcomes • Malaysia’s largest banking group faced • Provided richer, deeper learning intense competition and deregulation requiring experience at substantially lower cost per more responsive leadership and a stronger student management talent pool for its 400 + branches • Created common management and leadership model across the bank Actions • Increased ability of managers to communicate a strategic vision, engage • Launched a new Corporate Management and energize the workforce and Development Program in 2005 for emerging maximize talent and performance and first-line managers: − Utilizes distributed learning, classroom • Generated business impact of US$20 experience, collaboration with peers, on- million according to a balanced the-job coaching, and reference materials scorecard and key performance indicators − Leverages mentors and e-facilitators Initially trained 750 managers across sector boundaries to build core management skills These lessons were then shared with their direct reports, impacting over 3000 employees Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Cracking the Code for Talent
  • IBM Global Business Services The business press and analyst community have flagged talent management as a potential risk area for many organizations “The typical organization does not have a handle on the effect that talent shortages and the graying workforce may have on the firm's ability to execute on its future strategy. It is imperative that HR lead the way in conducting a risk assessment now. Once the risk is understood, HR can then help alleviate these risks by putting the right talent strategies in place -- strategies for identifying top performers, increasing retention, and positioning for future talent acquisition.” - IDC Source: The Economist, October 7, 2006; IBM Global Business Services; IDC, Worldwide and U.S HR Management Services 2007–2011 Forecast, Doc#206320, April 2007
  • IBM Global Business Services We see higher turnover affecting a significant amount of companies in our sample In the past two years, what changes have there been to the level of turnover within your organization? 36% 33% 14% 13% 3% 1% Significantly Somewhat About the Somewhat Significantly Don't know higher than in higher than in same as lower than lower than previous previous previous in previous in previous years years years years years “Staff turnover is increasing – largely driven by an aging workforce (retirements) and increasing skill scarcity in the market.” Source: IBM Global Human Capital Study 2008. - HR leader, Government agency
  • IBM Global Business Services While managing skills are top of mind for HR executives in our study surprisingly, employee attraction and retention take a lower priority What do you see as the primary workforce challenges facing your organization? Inability to rapidly develop skills to 52% address current/future business needs Lack of leadership capability 36% Employee skills not aligned with 36% current organizational priorities Inability to collaborate/share 31% knowledge across the organization Inability to attract qualified candidates 27% Inability to build an 24% engaged/motivated workforce Unable to redeploy/realign resources 22% against new opportunities Inability to retain key employees 18% Labour costs higher than competitors 15% Difficulty in modifying staffing levels 11% due to local labour regulations Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Many organizations in our study believe they are effective in attracting/retaining employees compared to their competitors How do you think your ability to attract/retain talent compares to your competitors? 42% 29% 17% 9% 1% 2% Much more Somewhat Equivalent Somewhat less Much less Don't know successful more successful vs. successful vs. vs. successful vs. competitors competitors competitors competitors “Our market leadership and our international reputation are both key in attracting and retaining employees.” - HR Director, Professional services firm Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Reputation plays a significant role in employee attraction, while career growth and opportunities are strong retention drivers Drivers of Drivers of employee attraction employee retention 49% Positive corporate reputation 25% Company has a track record of 42% transforming itself and continuing 29% its success in the market 40% New or challenging responsibilities 48% 37% Clear career growth opportunities 43% 33% Compensation and benefits equal to, or 39% greater than, industry and/or local norms 31% Company values are aligned 34% with personal values 18% Ability to balance work and life demands 26% 18% Opportunity to build specific skills 15% 10% Educational opportunities 11% Opportunity to work with a 5% specific manager or set of peers 12%
  • IBM Global Business Services Companies looking to stay ahead of their competitors need to focus on the entire employee lifecycle • Realize that changing demographics, growth, Avoid and increased employee mobility can rapidly complacency change the dynamics of the recruiting market and make it difficult to attract and retain talent Apply • Combine the most effective aspects of face-to- blended learning face and distributed learning capabilities • Leverage relationship management tools and Focus on key processes to attract potential employees and employee segments retain current ones • Consider tapping into alternative labor pools Look beyond (e.g., retirees, women with children, individuals traditional employees with disabilities) to obtain needed skills Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Driving Growth Through Workforce Analytics
  • IBM Global Business Services While HR has made advances in contributing to business strategy, it does not provide input into strategic issues in many firms What is the relationship between your organization’s business strategy and workforce strategy ? 39% 43% 13% 5% Workforce Workforce Workforce strategy is Workforce strategy is strategy is both strategy is driven developed not formally driven by, and by the overall independently from the documented provides input business strategy overall business into, the overall strategy business strategy “Clearly being a partner with, and influencing business strategy, is the goal of HR. However…achieving this role depends on what HR can deliver and demonstrate, both in their ability to provide business value and ability to execute” Source: IBM Global Human Capital Study 2008. - SVP HR, Chemicals company
  • IBM Global Business Services An inability to use human capital data and information makes it difficult for HR to engage in strategic workforce discussions How effectively does your organization use human capital data and information to make decisions about the workforce? 39% 36% 18% 6% 1% Very Generally Somewhat Not effective Don't know effective effective effective “Until recently – and perhaps even now – 90 percent of HR personnel's job has just been about obtaining the data rather than analyzing it!" – VP HR operations, European Source: IBM Global Human Capital Study 2008. industrial company
  • IBM Global Business Services Integration issues, as well as an inability to define metrics and extrac data, make it difficult to analyze human capital data and information Which barriers are most likely to prevent your organization from using data and information to make workforce decisions? Human capital systems are poorly integrated 41% Human capital systems are not well integrated with other organizational systems (e.g., financial, sales) 41% Metrics not well defined 28% Inability to extract information from our HR systems 28% HR personnel have lack of experience 24% analyzing data in order to make decisions Quality level of human capital data is suspect 21% Managers unwilling to access information 19% HR personnel not oriented towards using data in 17% decision making Lack of executive level support 12% Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Applying human capital data and information requires a combination of technical and non-technical solutions • Ensure that human capital data is of the same Address data level of timeliness, quality and accuracy as integration would be expected of financial or operational and integrity issues information • Implement tools that make it easier for both HR Ensure personnel and line management to access and accessibility apply human capital data • Provide training, mentoring and other support Enable HR to existing HR personnel in using analytic tools personnel can use and approaches data to improve • Incorporate analytic skills into the hiring, decision making development and rotational plans for the HR organization Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Case Example: Better human capital information improves resource utilization Challenge Outcomes • A medium size health care organization • Greater understanding of current and needed to better allocate their clinical trial future skill requirements staff to manage rapidly expanding portfolio of drug therapies • Improved utilization of existing staff • Improved resource cost management Actions • Higher quality sourcing decisions regarding the use of permanent vs. • Classified employees by skill type and contingent labor force developed roles based on skill categories • Created a process to predict future project pipeline • Developed a new resource management system that: − Identified current and future demand for specific skills sets and capabilities − Matched staff with specific projects based on skill requirements and availability Source: IBM Global Human Capital Study 2008.
  • IBM Global Business Services Developing an adaptive workforce… An adaptable workforce that can • Is the responsibility of the entire C- rapidly respond to changes suite, not just HR in the outside market − To ensure commitment of time, resources, energy and focus Effective leadership to guide individuals through change • Needs to be based on human and deliver results capital data and information − To justify actions and build the An integrated talent management case for change model that addresses the entire employee lifecycle • Requires an integrated, architected approach Workforce analytics that can deliver strategic insight − To avoid conflicting priorities and and measure success misaligned resources Source: IBMIBM Global Human Capital Study 2008. Source: Global Human Capital Study 2008.
  • IBM Global Business Services Three primary forces are driving organizations to think more strategically about how to create high performance workforces Changing Workforce Demographics Globalization of Work Aging Population Generational Differences The Challenge of Creating the Adaptive Workforce Developing an Adaptable Workforce – A Critical Capability Revealing The Leadership Gap –Future Growth at Risk Cracking the Code for Talent Driving Growth Through Workforce Analytics The Challenge of Creating Strategic HR Establishing Board Room Credibility Shift to Workforce and Talent Management Issues
  • IBM Global Business Services Many HR organizations have spent the last several years looking to improve their ability to deliver strategic capability to the business … Changing role of the HR function Traditional Paradigm Emerging Paradigm HR provides support to the HR proactively identifies business opportunities business units when asked and flags potential human capital risks HR professionals are valued by HR professionals are valued for their ability to their responsiveness to inquiries solve business problems HR deals with the ‘soft’ side of the HR uses the same data-driven, fact-based business approach as the rest of the organization People problems are the Managers and HR jointly apply their experience responsibility of the HR department to address employee issues The HR department owns Employee data is a shared responsibility employee data between managers, employees and the HR organization Source: IBV analysis
  • IBM Global Business Services Strategic HR is about driving revenue and effectively managing cost across the organization Workforce transformation Innovation focus - Skills and competencies & - Goals and objective Revenue growth - Right people, right place, right time Engagement & values Knowledge and Collaboration Workforce enablement & effectiveness Strategic Non-core HR operating model innovation HR • Shared Services Flexible infrastructure • Excellence in process and data & • Web self service Cost reduction • Support of line-management • Global sourcing
  • IBM Global Business Services Strategic HR organizations are focusing their attention on workforce and talent management issues Performance Learning and Management Development Enabling enterprise innovation and Enterprise performance Enterprise Strategy through improved Performance workforce effectiveness Workforce Collaboration Management and Portals
  • IBM Global Business Services Conclusion
  • IBM Global Business Services Three primary forces are driving organizations to think more strategically about how to create high performance workforces Changing Workforce Demographics Globalization of Work Aging Population Generational Differences The Challenge of Creating the Adaptive Workforce Developing an Adaptable Workforce – A Critical Capability Revealing The Leadership Gap –Future Growth at Risk Cracking the Code for Talent Driving Growth Through Workforce Analytics The Challenge of Creating Strategic HR Establishing Board Room Credibility Shift to Workforce and Talent Management Issues
  • IBM Global Business Services For more information: ibm.com/gbs/humancapital