Transitions and TransformationsSHAPING THE ROLE OF HR: Tactics for Strategic Change Dan Scotti Training and Learning Development
SESSION OBJECTIVES • Broaden perspectives • Challenge the conventional wisdom regarding HRM • Peek into the future
Survey Says….. • A recent survey by the Towers Perrin Group revealed that: – 50% of HR professionals see themselves as strategic business partners within their organizations – But only 17% of HR professionals say they are invited to participate in the initial stages of major enterprise initiatives
Closing the Gap Requires • A change in mindset • HR • The Enterprise • Continuing to performing the basic functions well • Organizational Literacy • Courageous Leadership
A New Mindset:HR as an Investment, Rather than anExpense • Historically: HR and people were not considered tangible assets. The ‘means of production’ was a machine bolted to the factory floor. People merely operated it. • Today: The intangible of human capital (what people know + their level of commitment to the organization) is the prime driver of organizational results.
A New Paradigm • HR is shifting from focusing on the organization of the business to focusing on the business of the organization
The Goal • The intent of the new HR paradigm is to achieve alignment among the » Strategy » Structure » Culture • of the enterprise.
Strategic HR • Focus • Alignment • Process integration • Information management • Innovation • Measurable results
Strategic HR • Partner • Change agent • Passionate about people as the source of organizational success
The Foundation • Traditional HR Functions • Employment • Compensation • Benefits • Training/Development
Just a Thought If you keep on doing what you’ve always done, you’ll keep on getting what you always got………
Emerging Functions Additional value added: • Multi level performance analysis – people, teams, the organization • Aligning HR process to drive organizational results • HR as a component in the enterprise value proposition, in vision & mission achievement
High Gain HR Questions • How do people create value for the organization? • How does HR contribute to and measure the value creation process?
HR Evolution:Personnel” Functions Transactions Compliance Record keeping Financial Focus Cost minimized Key Strategies Rule knowledge Process efficiency Products/Services Payroll & benefit administration Job descriptions/standards Training Compliance Metaphor The enforcer Paradigm Technical correctness
HR Evolution: “Human Resources” Functions Advisory services Problem solving Operational issues Financial focus Cost control Key strategies HR practices Business context Products/services Recruiting, Performance evaluation, Payroll, Position management, Employee relations, Training & Development, Risk management Metaphor Business Partner Paradigm Process Improvement
HR Evolution: “Human Capital” Functions Capacity building Opportunity identification Strategic issues Financial focus Investment analysis (ROI) Key strategies Systems thinking Strategic consulting Products/services Human capital planning, Talent management, Leadership development & succession planning, Performance culture, Competency systems, Metrics Metaphor Strategic Partner Paradigm Transformation
HR Strategic Architecture HR Function HR System Human HR professionals Performance driven, Performance with strategic strategically aligned policies & practices Strategically competencies to focused deliver competencies, products/services motivation, that drive skills, organizational success capabilities
The Strategic HR Model Strategic HR Leadership The HR Value Proposition: Linkage to Results Business Literacy: HR knows the business Doing the ‘basics’ Know the HRBOK well Personal credibility of the HR practitioner
An Emerging HR Mindset • Focused on adding value for the customer • Proactive • Willing to assume risk • Results driven
HR Best Practices HR Practice Bottom 10% Top 10% MeasuresQualified applicants per hire 8 37Annual training hours:Per new employee 35 117Per experienced employee 13 72% employees receivingperformance appraisal 41% 95%360 feedback 4% 52%% hired based on a validated 4% 30%selection test
Tactic: A Consultative Approach • A phased, modular, repeatable and iterative process for HR professionals so that customer relationships are enhanced. – Strengthen the HR value proposition – Create enterprise HR bench strength – Manage HR professionals as an enterprise asset
A Best Practice: HR Consulting • Setting the Stage • Entering, Scoping, Contracting • Diagnosis • Determining Action, Planning, Implementation • Assessing, Closing
Skills • For each Phase: – Structure – Challenges – A set of consultative skills • An Action Learning Activity to transcend the learning
A Couple of Closing Thoughts • Be careful of yesterday’s success, because success tastes so good it dulls the appetite for risk….. • The significant problems in life cannot be solved from the same mode of thinking that created them………