DIRK STOLTENBERG
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DIRK STOLTENBERG
- 1. Dirk Stoltenberg, Global HRM EXCELLENCE – LEADERSHIP – ART STRATEGIC AGILITY @ HR November 24, 2014 | Slide 1 This document provides an outline of a presentation. It is incomplete without the accompanying commentary
- 2. November 24, 2014 | Slide 2
- 3. November 24, 2014 | Slide 3
- 4. Companies scoring high in agility related routines have higher levels of Return On Assets November 24, 2014 | Slide 4 Source: Center of Effective Organizations, University of Southern California
- 5. November 24, 2014 | Slide 5
- 6. Don‘t sing the same song, instead invite people to think Questions open doors, answers close them Arm people with most competitive weapon of our times: Knowledge © ABB Group November 24, 2014 | Slide 6 November 24, 2014 | Slide 6
- 7. November 24, 2014 | Slide 7
- 8. November 24, 2014 | Slide 8
- 9. BUSINESS MODEL INDICATORS November 24, 2014 | Slide 9
- 10. BUSINESS MODEL INDICATORS November 24, 2014 | Slide 10
- 11. HR, SO WHAT? Changing nature of work Changing needs of internal clients Changing nature of the consumer Changing nature of B2B customers Changing impact of information November 24, 2014 | Slide 11
- 12. ALMOST 20YRS OF HR SHARED SERVICES... ...acknowledge for: • More efficiency, reduced cost November 24, 2014 | Slide 12 – Sure! • Improved Customer Service – Maybe. • Fewer administrative burden – For whom?
- 13. 20% 10% November 24, 2014 | Slide 13 Processes Well defined and standardized processes enhance operational efficiencies and cost-savings. Impact of Process Standardization on Cost-Savings 1% 32% 40% 20% 0% Non-standardized processes Standardized processes across all locations Net Cost-Savings Source: Shared Services Roundtable People High turnover and dis-engagement of staff reduce productivity, negatively impact customer service, and increase hiring costs. Annual Turnover Rates Median Turnover Rate 15.2% 9.9% 0% Shared Services Employees All Corporate Employees Source: CLC Human Resources Non-integrated technology and data sets reduce HR shared services quality & efficiency. 35% 18% 14% 13% 40% 20% 0% Technology Top HR Service Delivery Issues Percentage of Organizations Streamlining Processes & Systems Upgrading HR Systems Data Accuracy Integrating Systems Source: Towers Watson
- 14. A) HR Operations November 24, 2014 | Slide 14 • 25 HR Centers • CoE included • 900 Staff • REV/COST RATIO 0,46 • VARIATION APPRECIATED • CALIBRATION • BUSINESS REVIEW SCORE • PERFORMANCE • NET PROMOTER SCORE • COST/REVENUE RATIO
- 15. A) HR Operations November 24, 2014 | Slide 15
- 16. B) November 24, 2014 | Slide 16
- 17. C) November 24, 2014 | Slide 17
- 18. C) November 24, 2014 | Slide 18
- 19. D) November 24, 2014 | Slide 19
- 20. BE AGILE: November 24, 2014 | Slide 20 STRATEGIZE DYNAMICALLY PERCEIVE CHANGE TEST & EXPERIMENT IMPLEMENT THE CHANGE
- 21. ROUTINES OF AGILITY (1) Distinct but complementary capabilities November 24, 2014 | Slide 21 Strategize dynamically Shared purpose Purpose other than profit & growth and businessmodel are known. Values embedded drive behavior on a daily basis Change-friendly identity Sense of „who we are“ and „What inspires us“. Strategy encourages the organization to change Robust strategic intend Current strategy is relevant in and concruent to the actual market conditions. Held flexible enough to change on short notice Perceive change Sensing People are keen to explore the future deeply. Many people maintain continuous contact with parts of the business environment Communicating Unfiltered information from the environment goes rapidly to decisionmakers. Communication goes seamless between top down & bottomup. Interpreting Information gets evaluated against firm‘s identity, intent, businessmodel, and risk tolerance Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company
- 22. ROUTINES OF AGILITY (2) Distinct but complementary capabilities November 24, 2014 | Slide 22 Test & experiment Slack in resources Capable resources (people, money, time, tools) are available and can be readily deployed to experiment with new ideas Risk Management Experiments are bounded by agree-upon criteria for judging success and failure. The possibility of failure is accepted, as a vehicle for learning Learning Experience with running experiments is captured and applied with each „new round“, so that the company‘s capabilities are continuously improved Implement the change Management and organizational autonomy Executives delegate sufficient authority to line and business managers o that the company can execute changes with success. There‘s no second guessing from headquarters but alignment with basic strategic objectives Embedded change capability The pragmatic ability to change collective habits, practices, and perspectives is embedded in line operations, not isolated in staff groups Performance management Clear, unambiguous, accepted performancemeasures and targets are based on business model drivers with rewards that matters Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company
- 23. November 24, 2014 | Slide 23 Watch the Samsung case @ https://www.youtube.com/watch?v=yFzYqEiV5lI
- 24. November 24, 2014 | Slide 24
- 25. November 24, 2014 | Slide 25
- 26. Agile organizations need agile people....so, answer yourself this questions: How agile are you? Are you changing before you have to? November 24, 2014 | Slide 26
- 27. © ABB Group November 24, 2014 | Slide November 24, 2014 | Slide 27
Editor's Notes
- Adressing HR‘s role in a global economy HR delivering transformational results in organizations
- Studies reveal that even facing the known challenges of this deacade, i.e. shorter econ cycles w smaller windows to response AND an increasing complexity by a globalized financial market & exchange of goods/services, there are companies that prove being more successful than the market they‘re operating in – and many do even sustain that leading position
- : T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Com
- Knowledge = People & Info being connected through personal contact & technology exploitation. Knowledge doubles, triples, quadruples, … as soon as being shared
- Changing nature of work: As the way companies sell products and create profits changes, so does the way in which that work is accomplished. Employees must be able to work as easily with colleagues in different functions and parts of the world as the one in the next-door office. Simultaneously, the value that employees create is becoming more interdependent on other employees’ work, placing a premium on what CEB research calls “network performance.” Research finds that workforces that excel at both individual task performance and network performance can boost year-over-year revenue growth by 11% and profit growth by 5%. This change in the nature of work requires firms to reengineer how they attract, develop, and manage employees. Changing needs of internal clients: For corporate functions, internal customers or clients seem to be increasingly difficult to serve. Line managers’ need to work with – and depend on – more colleagues, to manage a wider portfolio of products, and to serve more knowledgeable and demanding customers (see trends 3 and 4) has meant they must claim more authority and freedom in their decision making. That requires internal service providers — from IT to HR to risk management to strategy development – to enable their clients to do much of the work that those same providers used to do. And that requires a shift in the support they provide, from prescriptive templates and rules to guidance and context that helps line managers make intelligent decisions, such as about provisioning their own technology. Changing nature of the consumer: Consumers’ access to information, and an increasing need to approve of a company as well as the products it sells before making a purchase, means firms must communicate more authentically with customers, and make sure the branded experience they promise matches the reality of consuming and interacting with their products. For example, millennials (those born between the early 1980s and the early 2000s) demand social relevance, the opportunity for self-expression (customizing the home screen of their smartphone for example), and a sense of belonging from the products they buy, and from the “experience” that comes with those products. In the US alone, brands that fall short in millennial consumers’ eyes risk losing touch with one-quarter of the population. And worse, this segment makes up the majority of first-time homebuyers and new parents, and commands $1.68 trillion in annual consumer spending. Changing nature of B2B customers: As the complexity of business-to-business deals – for anything from a large corporate stationery order to enterprise software – has risen, so too has customers’ risk aversion and the number of stakeholders that must sign off on a given purchase. CEB research shows that 5.4 people are involved in the average B2B buying process. The consensus these groups require to make a decision makes the buying process longer, and a lot more difficult for sales rep. This is something that buyers and suppliers alike must learn to overcome. Without any intervention, sale cycles extend, and both buyers and suppliers walk away with smaller deals than either side wanted. Changing impact of information: No one in business needs to be told that that the information we can all access is growing exponentially, but executives underappreciate the toll that it takes on the users of that information. People struggle as they hit the limits of their cognitive ability to process, make sense of, and ultimately put to use the huge and varied array of information at their fingertips. From consumers to senior executives, people are aware of more options than they were in the past. They have access to more information to aid them in the decision-making process, and yet they struggle more to make decisions and often fail. CEB research also shows that the cost of poor decision making can be upward of $375 million. Leaders in the organization need to make information helpful, not harmful, to decision making.
- The past achievements are a weak predictor for future way of working What were we used doing during the past decade in HR? Maybe, you can help me with a few attributes >> Standardization >> Consolidation >> Alignment >> Efficiency >> BPO >> SelfService >> HCM, etc. This were all the right things to do. Though now I would say hindsight tells us that „...a few things just don‘t feel being right...“ or maybe missing: >> Involvement (SSC‘s, stakeholders, employees, HR‘s) >> Collaboration (Pharma case of 2MUSD dump bc of data privacy – s.o. knew), Grading rollout with comms at last being pulled >> Labor arbitrage problem >> short leadtime to react on acquisitions, tech.change, business exposure, global market
- http://www.strategy-business.com/article/00188 >> AUTHOR PROFILES: Thomas Williams is a senior executive advisor with Booz & Company. Based in Ridgway, Colo., he specializes in strategy, organization, and management systems for energy and industrial companies. Christopher G. Worley is a senior research scientist at the Center for Effective Organizations at the University of Southern California in Los Angeles. He is the coauthor, with Edward Lawler, of Management Reset: Organizing for Sustainable Effectiveness (Jossey-Bass, 2011). Edward E. Lawler III is the director of the Center for Effective Organizations at USC; the coauthor, with Chris Worley, of Management Reset; and the author of Talent: Making People Your Competitive Advantage (Jossey-Bass, 2008). Also contributing to this article was Niko Canner, former senior partner of Booz & Company; and s+b contributing editor Jim O’Toole.