Global hr forum2008-peter cheese-management of corporate performance from an hr perspective

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Management of corporate performance from an HR perspective

Management of corporate performance from an HR perspective

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  • 1. Management of Corporate Performance from an HR Perspective Global HR Forum Peter Cheese Global Managing Director, Talent & Organizational Performance Consulting Copyright © 2008 Accenture All Rights Reserved.
  • 2. Key issues driving global war for talent Shift in workforce size 30 Workforce growth % 25 § Changes in population 20 1995 - 2005 2005 - 2015 demographics 15 10 § Generational differences 5 0 § Concerns about workforce -5 Russia EU25 China US South Korea Mexico India Brazil quality and depth of skills -10 Japan Source: EIU § Shortfalls of critical skills in most markets Global labour force in 2008 B6 = 1,520m § Lack of broad business and 900 800 Developed leadership skills in many 700 economies = emerging markets 600 435m 500 400 § Increased competition in 300 ability to recruit and retain 200 100 role-ready people 0 China India Brazil Russia Mexico South EU25 US Japan Korea Source: EIU 2 Copyright © 2008 Accenture All Rights Reserved.
  • 3. Human capital being recognised as the source of competitive advantage “we have moved from the industrial age, through the information age, to the age of talent” Thomas Friedman, ‘The World is Flat’ “Executives perceive the top five threats to business success as competition (cited by 73 percent of executives), the health of the global economy and the inability to attract and retain the best talent (67 percent each), company reputation (62 percent) and the inability to develop new products and services (51 percent). Accenture survey of 300 top business leaders Jan 2008 3 Copyright © 2008 Accenture All Rights Reserved.
  • 4. Whilst Human Capital is recognized as the source of competitive advantage, satisfaction with organizational response is very low Survey of approx 300 C-level execs across multiple geographies and industries… Key HR Initiatives Improving worker 69% productivity 6% Improving the adaptability of the 68% business to new opportunities 11% Facilitating organizational 66% change 12% Improving employee engagement 65% with/advocacy for the company 11% Improving the delivery of 64% HR services 14% Satisfaction with Progress Importance Source: The Accenture High-Performance Workforce Study 2007 4 Copyright © 2008 Accenture All Rights Reserved.
  • 5. Have we found the answers? 5 Copyright © 2008 Accenture All Rights Reserved.
  • 6. Strategic challenges require a strategic response • Business priorities and direction Business Strategy • Products, services, markets Business Strategy • Organic and inorganic growth objectives • Distinctive competencies and capabilities Enables Shapes • Organization and Operating Model • Leadership Human Capital Strategy Human Capital Strategy • Culture • Talent Enables Shapes • Capabilities needed to enable • HR practices, systems, organisation and HR Strategy HR Strategy competencies • Investment plans and business cases 6 Copyright © 2008 Accenture All Rights Reserved.
  • 7. Key questions to ask Workforce Profile 2016 200 Workforce Profile 2016 180 200 160 180 140 160 Headcount 120 Required Workforce What is the current risk to the organisation? 140 Other Attrition 100 Headcount 120 Required Workforce Retirements 80 Other Attrition 100 Current Workforce 60 Retirements 80 40 Current Workforce 60 20 40 0 20 Today 2008 2009 2010 2011 2012 2013 2014 2015 2016 0 Today 2008 2009 2010 2011 2012 2013 2014 2015 2016 What talent do we need to fulfil the business Retirement & strategy? Attrition Analysis Trapped Truly Loyal Which are our low performers and should go? + 14% 58% Behavior (stay) Dissatisfied but Satisfied and intend without the option to to stay leave What will it take to attract the right talent and High Risk 14% Accessible 14% where do we find them? - Actively seeking alternative employment Not actively seeking to move but would accept a ‘better’ offer - Attitude (Satisfaction) + What will it take to retain the existing workforce? EVP Survey How good are our talent management capabilities and HR to support what we need? Talent Management 7 Copyright © 2008 Accenture All Rights Reserved. Diagnostic
  • 8. Active engagement of top leaders % of heads of top three functions Leaders Laggards “highly involved” in human capital management initiatives Leading talent organizations have Sales 69% 29% the heads of their top functions deeply engaged in people Customer service 60% 24% management Engineering 67% 16% R&D 62% 28% Strategic planning 40% 23% Marketing 50% 8% IT 50% 15% Logistics 50% 9% Source: The Accenture High-Performance Workforce Study 2006 8 Copyright © 2008 Accenture All Rights Reserved.
  • 9. Driving greater value from the HR function HR is on a journey from efficiency improvement to effectiveness and then to strategic value Improve Workforce Results HR OPEX and Workforce Cost Reductions plus: $$$ • Explicitly align talent plan to business strategy • Mine HR and operations data for insight to drive talent decisions Integrated • Gauge talent results through ROI and financial measures • Attract, develop, incent, and retain critical workforces Sustained Workforce Cost Reduction Reduce Workforce Cost $$ Relationship to HR OPEX Reduction plus: • Expedite Poor Performer Exit Business Aligned • Accelerate Time to Competency Strategy • Reduce Attrition • Maximize Productive Time Reduce HR OPEX • Standardize processes $ Supporting • Improve self-service • Reduce application and technology costs 10 - 20X • Shared Services X 10 – 15X Low High Integration of Talent Management Activities 9 Copyright © 2008 Accenture All Rights Reserved.
  • 10. Integrated talent management based on a solid foundation Define your talent needs Develop your talent potential • Link to business strategy and priorities • Learning agility – right skills, speed to proficiency • Understanding of critical and core skills and talent segments • Talent mobility – learning through experience • Collaboration and connection to accelerate Discover sources of talent • Linkage to performance assessment and reward • New sources of talent Deploy talent • Sourcing options – Rightsourcing • Aligning talent to priorities and needs • Comprehensive recruitment channels • Moving work to where the talent is • Tailored value propositions • Link to talent development Discover Attract and source talent Talent Strategy Performance Business Business Strategy Workforce Results Workforce Results Define Develop Talent Measurement Talent Needs Potential Deploy Talent right place right time HR Foundation 10 Copyright © 2008 Accenture All Rights Reserved.
  • 11. What does this mean for the transformation of HR and Talent Management – four cornerstones Enhanced HR Roles and Competencies New Service Delivery Models HR Leadership Business HR Leadership Partners Centers of Expertise Business Centers of Partners Expertise Shared Service Center Business Units Client Shared Groups Services Center External Customers Common Policies and Processes Integrated HR Information Systems 11 Copyright © 2008 Accenture All Rights Reserved.
  • 12. Five imperatives: Becoming a talent-powered organization Put talent at the heart of the business strategy Build integrated talent management capabilities with strong focus on development Enhancing talent sourcing capabilities to find and attract more diverse talent Make leaders and line managers capable and accountable for good people management Apply robust value and outcome measures to understand progress 12 Copyright © 2008 Accenture All Rights Reserved.