How CEO's Can Inspire Their HR Teams

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1. Creating harmony: Integration of organization’s and HR’s goals
2. Planning for results: Quantifying the goals to enable measurement
3. Ownership: Building ownership of HR throughout the organization
4. Commitment for time & resources

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How CEO's Can Inspire Their HR Teams

  1. 1. How CEO’s Inspire HR ! A Few Fundamental Thoughts Essential but not Sufficient
  2. 2. A CMMi Level 5 Company Who we are • 14 Years of Information Technology Supply Chain Outsourcing services experience • Guaranteed operational cost savings exceeding 20% • Global collaboration & delivery model • Decades of experience in off-shoring Source-to-Pay services • Managing Centre of Excellence for High Technology Group many clients Established: 1984 • ISO, CMMI, Six Sigma Methodologies Headquarters: Dayton, Ohio, US Operating Locations: 25 Employees: 1500 Revenue: $ 550 million
  3. 3. A CMMi Level 5 Company Today’s CEO Gone are the days when CEOs sat at the top, doing nothing constructive. Today, they have to be leading a company to managing employees; linking organization objective and HR strategies with people management, CEOs are the top tier of management within companies and have become the visible leadership that drives vision down Jack Welch through the ranks.
  4. 4. Leaders Instill Rituals towards A CMMi Level 5 Company creating Customer Delight-Internal & External A good example is the tractor company Deer & Co.'s gold key program. On the day the tractor will be assembled, the company invites the farmer that placed the order to the factory, along with his or her entire family. They are received by a employee who walks them through the factory and shows the finishing touches being put on their tractor. Once the tractor is finished, they give them a gold key, and the farmer uses it to start the tractor. It's a powerful scene for employees and the customer. They can't help but feel a sense of pride.
  5. 5. A CMMi Level 5 Company What CEO’s want from their HR Culture Change enablement - Leadership HR systems design • Performance Management • Recruitment systems and profiles • Training & development • Retention strategy for key performers Compensation Employee communication • Align compensation quantum • Revised business strategy • Align compensation structure • Future roles Personnel policies Organization structure • Terms of employment • Organizational grades • Leave, holidays • Reporting relationships • Span of control
  6. 6. A CMMi Level 5 Company The HR delivery Model To deliver organizational excellence and become a valued business partner, HR is shifting its focus from Administration to Business partnering Role Transformation Policy/ Policy/ 10% 20% Planning Planning Process Redesign 30% Business Business 60% Partnering Partnering Integrated System Adminis- Outsourced tration Outsourced 60% Administration activities to activities to 20% third party employees OLD HR service delivery model o NEW HR service delivery model
  7. 7. A CMMi Level 5 Company Business and HR Imperatives
  8. 8. How HR is traditionally A CMMi Level 5 Company perceived by other functions
  9. 9. A CMMi Level 5 Company HR Managers or Leaders? • Management – Assures programs and objectives are implemented • Leadership – Casts vision and motivates people to achieve it “People don’t want to be managed. They want to be lead. Whoever heard of a world manager?” – Richard Kerr, United Technologies Corp, Bits and Pieces, March 1990
  10. 10. Building Blocks of HR A CMMi Level 5 Company Leadership Influence People Priorities Vision Change Integrity Self-discipline
  11. 11. A CMMi Level 5 Company Leadership Facts
  12. 12. A CMMi Level 5 Company The Indispensable Quality Vision “Where there is no vision, the people perish…” (Proverbs 28:19)
  13. 13. A CMMi Level 5 Company What is Leadership? Influence “What is leadership? Remove for a moment the moral issues behind it and there is only one definition: Leadership is the ability to obtain followers.” -James Georges, Par Training Corporation, in Executive Communications Magazine
  14. 14. A CMMi Level 5 Company The Key to Leadership? Priorities Success is the “progressive realization of a predetermined goal.”
  15. 15. A CMMi Level 5 Company The Prime Ingredient Integrity “The first key to greatness, is to be in reality what we appear to be.” – Socrates
  16. 16. A CMMi Level 5 Company The Ultimate Test of Leadership Change “If you want to lead, you must change…if you want to continue to lead, you must continue to change.” – Howard Hendricks
  17. 17. A CMMi Level 5 Company The Leader’s Greatest Asset People “No man will make a great leader who wants to do it all himself, or to get credit for doing it.” – Andrew Carnegie “It’s amazing what you can get accomplished when you don’t care who gets the credit.” – Harry Truman
  18. 18. A CMMi Level 5 Company The Price of Leadership Self-discipline “If leaders are to be successful, they must first lead themselves.” – John Maxwell
  19. 19. A CMMi Level 5 Company Building Blocks of Leadership Influence People Priorities Vision Change Integrity Self-discipline
  20. 20. What do High performing A CMMi Level 5 Company organizations get right Im m ature Moderately Mature Highly Mature Mature 0 1 2 3 4 3.6 Knowledge Management 2.2 Learning Management 3.3 1.8 Organiztions that 3.5 scored in the top Succession Planning Leadership Development 1.7 quartile of financial 3.6 results Career Management 1.5 Organizations that 3.6 scored in thebottom Human Capital Infrastructure 1.7 quartile of financial results 3.4 People Care 2.2 3.4 Human Capital Strategy 1.8 • Senior Executives take an active personal interest in people-development initiatives • We anticipate and initiate change before changes is ‘imposed’. • We have experienced HR executives who play a critical role in business planning/talent management. • We take a systematic approach to performance management and professional development. • We clearly and consistently align HR and competency development programs with the business needs. • We continuously and systematically foster employee engagement and commitment.
  21. 21. How does your CEO’s look at HR A CMMi Level 5 Company budgets? 35 32% 28% 30 25 20 15% 15% % Respondents 15 9% 10 5 0 Mainly as Somewhat 50/50 Somewhat Mainly as operating as a cost as source source of cost of value value • Significant shift from viewing employee expenses as cost to viewing them as a source of value • Focus towards understanding the RoI on human capital investment • Understanding cause and effect relationships • Identifying areas where investments bring maximum value Business focus has shifted from viewing employee expense as cost only to one driving growth
  22. 22. Does HR help in meeting A CMMi Level 5 Company Financial Goals ? Metric Extent to Which Human Performance Primary Human Performance Impacts Metric Value Levers 10.2 % • Talent Acquisition Return on Equity 4.4 % • Orientation/ Integration/Training 2.1 % Real Revenue Growth • Total Rewards 1.1 % • People Care – from a $ 270, 000 ‘crowd’ to a community Employee Productivity $ 200, 000 • Knowledge Sharing/Professional Development 84.6 % Staff Retention • Career Management 78.5 % • Capability Development Orgz with HR OD Programs Customer Satisfaction Customer satisfaction increases 1.3% for every 5% increase in Employee Engagement Orgz without HR OD Programs
  23. 23. A CMMi Level 5 Company Life Cycle of HR Initiatives AL New Methods W STABILITY/ NE New Systems RE New Behaviors MAINTENANCE New Beliefs Problem/ Performance Measures Opportunity PERFORMANCE Renewal Requirements • Strategic Plan S S RE • Leadership De (Survival/Growth) OG ca • Learning y PR • Culture • Relevance • Resources • Implementation Policies Deny Unyielding Methods HR Procedures Leadership Rationalize Rigid Systems HR Systems Systems Avoid Inflexible Behavior Behaviors Training Protect Unchallenged Beliefs Beliefs Resources Unquestioned Assumptions Defend BUILDING SUSTAINMENT UNCERTAINITY DECAY/RENEWAL PHASE PHASE PHASE PHASE time
  24. 24. A CMMi Level 5 Company Going up the Value Chain up! g in 3) Strategic Go 2) Tactical 1) Transactional
  25. 25. Bring Transformation by A CMMi Level 5 Company Simplification Types of Questions What is the Should desired state? What is the Is current state? What is the root Cause issue?
  26. 26. Bring Transformation by A CMMi Level 5 Company Simplification G Go for the SHOULD A Analyze the IS P Pin down the CAUSES S Select the right SOLUTIONS
  27. 27. A CMMi Level 5 Company Great Results Just Don’t “Happen” They Are Planned….Based on Analysis, Strategic Targeting, and careful Execution They are Orchestrated by Talented, Disciplined, and Dedicated Individuals
  28. 28. Thank You

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