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Diagnosis of the strategic maturity of HRM and L&D practices (Africa)_Extended scope

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Diagnostic findings of the measurement of the strategic impact, value and maturity of the current HRM and L&D practices in 10 focal areas in 7 African countries by means of mini surveys and change messages to actualize to strategic performance advisor and strategic learning partner roles - Extended scope

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Diagnosis of the strategic maturity of HRM and L&D practices (Africa)_Extended scope

  1. 1. REALITY CHECK FOR CHIEF HUMAN RESOURCES OFFICERS IN AFRICA: HRM PRACTICES STILL LANGUISHING AT A TRANSACTIONAL LEVEL OF STRATEGIC MATURITY – EXTENDED SCOPE CHARLES COTTER PhD, MBA, B.A (Hons), B.A SINGAPORE 26 JULY 2018 www.slideshare.net/CharlesCotter
  2. 2. MEASURING THE STRATEGIC IMPACT AND VALUE OF HRM/L&D • Over the past 12 months, I’ve developed Survey Monkey quizzes, based on compliance of current HRM/L&D practices, measured against 10 best practice criteria, that I’ve used on various training and conference speaking assignments in South Africa, Ghana, Zambia, Mozambique, Kenya, Tanzania and Uganda. • The responses (N = 560) from these seven (7) countries were HR/L&D managers and - professionals, representative of both public and private sector institutions. • The ten (10) focal points of these mini surveys include the following HRM/L&D value chain processes: ❑#1: Strategic Performance Advisor (SPA) ❑#2: Strategic HR Planning ❑#3: HRM Metrics and Analytics ❑#4: Strategic Total Rewards Management (STORM) ❑#5: Skills Auditing
  3. 3. MEASURING THE STRATEGIC IMPACT AND VALUE OF HRM/L&D • The ten (10) focal points of these mini surveys include the following HRM/L&D value chain processes: ❑#6: Strategic Learning Partner (SLP) ❑#7: Ethics of S.A trainers ❑#8: Succession Planning ❑#9: HRM Auditing ❑#10: Future fitness of HR Professionals • Refer to the following links: • https://www.linkedin.com/pulse/reality-check-chief-human-resources-officers-africa-hrm-cotter- phd/ • https://www.slideshare.net/CharlesCotter/measurement-of-the-strategic-maturity-of-hrm-and-ld- practices-africa
  4. 4. HRM STRATEGIC MATURITY MODEL (Cotter, 2017) Level 4: Strategic HRM (80%+) Level 3: Transformational HRM (65-79%) Level 2: Transactional HRM (41-64%) Level 1: Traditional HRM (0-40%)
  5. 5. OVERALL FINDINGS – VALUE CHAIN FUNCTIONS 1-5 HRM/L&D Value chain process Number of responses (N) Mean Score Relative Difficulty ranking Standard deviation Level of Strategic Maturity #1: Strategic Performance Advisor (SPA) 86 61% 6 15% Level 2 (Transactional) #2: Strategic HR Planning 67 64% 8 14% Level 2 (Transactional) #3: HRM Metrics and Analytics 103 53% 2 11% Level 2 (Transactional) #4: Strategic Total Rewards Management (STORM) – Principles and Best Practices 36 50% 1 11% Level 2 (Transactional) #5: Skills Auditing 47 57% 3 14% Level 2 (Transactional)
  6. 6. OVERALL FINDINGS - VALUE CHAIN FUNCTIONS 6-10 HRM/L&D Value chain process Number of responses (N) Mean Score Relative Difficulty ranking Standard deviation Level of Strategic Maturity #6: Strategic Learning Partner (SLP) 27 62% 7 13% Level 2 (Transactional) #7: Ethics of Southern African trainers 58 59% 5 12% Level 2 (Transactional) #8: Succession Planning 43 76% 10 18% Level 3 (Transformational) #9: HRM Auditing 37 57% 3 16% Level 2 (Transactional) #10: Future fitness of HR professionals 56 68% 9 13% Level 3 (Transformational) OVERALL 560 61% Level 2 (Transactional)
  7. 7. OVERALL FINDINGS • Only x2 of the total scope of the study of x10 HRM value chain functions exceed the mean score threshold of 65% (level 3 of strategic maturity - transformational HRM), namely: Succession Planning (76% - N = 43) and Future Fitness of HRM Pro's (68% - N = 56). • The average of these x10 HRM value chain functions is 61% (level 2 of strategic maturity - transactional).
  8. 8. 0 5 10 15 20 25 30 STRATEGIC PERFORMANCE ADVISOR - FREQUENCY DISTRIBUTION 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100
  9. 9. STRATEGIC PERFORMANCE ADVISOR (SPA) – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 21-100% 57% 61% 15% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q3: Your organization's HRM function generates business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions) 1 49% Q2: Your organization's HRM function has well-defined, implemented and reported HRM performance scorecards and ROI metrics (creating credibility and accountability) 2 53% Q8: Your organization's HRM processes, systems and practices are horizontally integrated (bundled), agile, responsive and stream-lined (that enhance productivity and efficiency) 3 57%
  10. 10. STRATEGIC PERFORMANCE ADVISOR (SPA) – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q4: Your organization's HRM function offers a professional, value-adding business proposition sensitive to and supportive of business needs, interests and strategic priorities 10 70%
  11. 11. 0 5 10 15 20 25 STRATEGIC HR/WORKFORCE PLANNING 31-40 41-50 51-60 61-70 71-80 81-90 91-100
  12. 12. STRATEGIC HR PLANNING – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q8: Your organization's HR plan integrates both scientific (HRM metrics, predictive analytics and strategy maps) with artistic (planning) principles. 1 58% Q10: Your organization's HR plan yields a positive ROI, with tangible/demonstrable outcomes and impact i.e. creates sustainable HCM competitive advantages 2 60% Q4: Your organization's HR Plan provides accurate and reliable (clear view) talent planning/management information e.g. available core competencies; scarce skills; critical jobs and employee segments and talent gaps. 3 61%
  13. 13. STRATEGIC HR PLANNING – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 11-93% 64% 64% 14% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q5: Your organization's HR plan is collaborative, well-coordinated and a partnering effort (HRM has co-opted business partners e.g. line managers to the process). 10 67%
  14. 14. 0 10 20 30 40 50 60 HRM METRICS AND ANALYTICS - FREQUENCY DISTRIBUTION 21-30 31-40 41-50 51-60 61-70 71-80 81-90
  15. 15. HR METRICS AND ANALYTICS – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 22-83% 53% 53% 11% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q6: Your organization has re-injected scientific principles, processes and tools and credibility into HRM Metrics e.g. 3 E’s - evidentiary, empirical and ethical. 1 47% Q10: Your organization harnesses automation, utilizing a 4-G digital data analysis solution. 2 50% Q3: Your organization has streamlined and systematic HRM metrics processes 3 51%
  16. 16. HR METRICS AND ANALYTICS – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q9: Your organization starts small, thinks big and systemically scales up over time, as opposed to adopting a large-scale “Big Bang” HRM Metrics approach. 10 59%
  17. 17. 0 1 2 3 4 5 6 7 8 9 10 STORM - Principles 11-20 21-30 31-40 41-50 51-60 61-70
  18. 18. STRATEGIC TOTAL REWARDS MANAGEMENT (STORM PRINCIPLES) – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 19-67% 44% 45% 11% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q4: Your organization's reward management practices are future-focused (ensuring that the organization is future-proof). 1 36% Q3:Your organization's rewards management practices conduct environmental scanning and are highly attuned, sensitive to and proactively responsive to change. 2 40% Q7: Your organization's reward management practices enable the organization to gain a sustainable, strategic competitive 3 41%
  19. 19. STORM PRINCIPLES – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Your organization's reward management practices adopt a measurement culture e.g. scorecards, dashboards, metrics, risk analysis and audits etc. 8 62%
  20. 20. 0 1 2 3 4 5 6 7 8 STORM - Practices 31-40 41-50 51-60 61-70 71-80
  21. 21. STORM PRACTICES – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 38-74% 57% 55% 10% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q9: The value of remuneration and rewards offered by your organization is affordable (feasible) promoting business sustainability and continuity. 10 67%
  22. 22. STORM PRACTICES – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q5: Your organization promotes transparency through sharing information about their compensation practices, pay rates criteria and how they are determined – especially at the managerial and executive levels. 1 49% Q8: Your organization has an efficient, user-friendly and stream-lined job evaluation and job grading process. 2 49% Q2: Your organization adequately and accurately recognizes the knowledge, skills, competencies and experience of employees and rewards are sufficiently flexible and variable. 3 50%
  23. 23. 0 5 10 15 20 25 30 SKILLS AUDITING 21-30 31-40 41-50 51-60 61-70 71-80 81-90
  24. 24. SKILLS AUDITING - WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 30-90% 57% 57% 14% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q4: Formal appeal mechanisms are in place in your organization and skills assessment results are regularly moderated and reviewed. 1 51% Q3: Your organization trains skills auditors and -raters to use the skills rating instrument properly. 2 52% Q10: Your organization's skills auditing is a holistic, systematic, 3 53%
  25. 25. SKILLS AUDITING - MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q6: Employees are given a chance to improve their skills through targeted development opportunities. 10 71%
  26. 26. 0 2 4 6 8 10 12 STRATEGIC LEARNING PARTNER 41-50 51-60 61-70 71-80 81-90
  27. 27. SLP – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 41-89% 58% 62% 13% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q5: L&D have established a high impact learning organizational (HILO) culture and developed a Knowledge Management System 1 53% Q4: L&D Managers and -professionals adopt and apply a strategic mind-set (conceptual thinking) 2 58% Q3: There is direct and active engagement, consultation and participation of line management in all learning processes 3 59%
  28. 28. SLP – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE When utilizing outsourced training providers, L&D ensures performance- directed, Service Level Agreements are in place 10 70%
  29. 29. 0 5 10 15 20 25 30 ETHICS OF SOUTHERN AFRICA TRAINERS 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  30. 30. ETHICS OF SOUTHERN AFRICAN TRAINERS – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 39-100% 59% 59% 12% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q12: South African trainers' conduct is morally corrupt. 20 66% Q7: South African trainers are trustworthy. 19 64% Q18: South African trainers demonstrate a sense of duty and commitment to faithfully serve the training profession. 18 64%
  31. 31. ETHICS OF SOUTHERN AFRICAN TRAINERS – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q20: South African trainers sometimes violate copyright and intellectual property rules and are guilty of plagiarism. 1 49% Q4: South African trainers sometimes discredit the training profession by associating with unscrupulous business owners. 2 49% Q2: South African trainers are sometimes guilty of misconduct. 3 53% Q6:South African trainers sometimes violate the organizational code of conduct. 4 53% Q13: South African trainers' actions comply with regulatory standards and training legislation. 5 54%
  32. 32. 0 2 4 6 8 10 12 14 SUCCESSION PLANNING 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  33. 33. SUCCESSION PLANNING – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q6: The talent pipeline is vibrant in creating an adequate succession planning rate/ratio e.g. 1:3 and talent bench strength of high potentials/performance. 1 70% Q8: The succession planning process is proactive, adopts a medium to long-term view e.g. 3-5 years and uses scenario planning/"what if" analyses. 1 70% Q9: Succession planning frequently scans the micro, market and macro business environments, is consistently reviewed and is agile in it’s response. 1 70%
  34. 34. SUCCESSION PLANNING – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 22-100% 79% 76% 18% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Succession planning builds organizational capacity, promotes institutional memory and stimulates knowledge and skills transfer. 10 86%
  35. 35. 0 2 4 6 8 10 12 14 16 HRM AUDITING - FREQUENCY DISTRIBUTION 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100
  36. 36. HRM AUDITING – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q3: The scope of and the HRM Audit measures are adequate and comprehensive i.e. the 70-20-10 principle is consistently applied. 1 48% Q6: All HRM Auditors are properly trained and competent in performing their auditing role and the appropriate and relevant use of HRM Auditing tools. 2 53% Q10: All HRM Audit stakeholders have agreed beforehand on the communication strategy and the HRM Audit findings are efficiently distributed. 3 53%
  37. 37. HRM AUDITING – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 22-97% 58% 57% 16% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q1: The HRM Audit is objective and independent from other HRM governance processes. 10 67%
  38. 38. FUTURE FITNESS LEVELS – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 44-100% 68% 68% 13% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q2: My professional status and -brand equity is typified by a high degree of differentiation, therefore I'm compensated at a premium rate (top dollar). 1 57% Q9: I'm a responsible and responsive digital citizen, who has mastered the ability to navigate, curate, analyze and communicate messages via digital media sources across an array of sophisticated technological platforms. 2 61% Q8: I'm a next dimension, "outside-of-the-box" systems thinker, who innovatively redesigns my thinking (and HRM operating model) to take calculated risks, by exploring uncharted frontiers and generating breakthrough ideas. 3 65%
  39. 39. 0 2 4 6 8 10 12 14 16 FUTURE FITNESS OF HRM PRO's - FREQUENCY DISTRIBUTION 41-50 51-60 61-70 71-80 81-90 91-100
  40. 40. FUTURE FITNESS LEVELS – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q6: Given the dynamically changing work environment, I'm able to rigorously reinvent and transform my HRM professional/career status to sustain upward employment mobility. 10 74%
  41. 41. SYNOPSIS OF THE STRATEGIC IMPACT AND VALUE OF HRM “Seemingly, current HRM practices are administrative, compliance-driven and transactional and not strategic, commitment-driven and transformational.” (Cotter, 2018)
  42. 42. CHANGE MESSAGE TO HR MANAGERS (Cotter, 2018) “One of the mission-critical strategic HRM objectives is to mainstream HRM into the core business processes. HRM should be embedded in the business strategy and their value proposition should be ingrained in the organizational culture fabric. Key business decisions should not be taken in the absence of consulting with HRM.”
  43. 43. CHANGE MESSAGE TO HR MANAGERS (Cotter, 2018) "HRM must be instrumental in and at the forefront of the I-Q-C-A-P drivers of business performance, namely: Innovation; Quality; Compliance; Agility and Processes (to optimize productivity), in their quest to transform and actualize to become strategic performance advisors."
  44. 44. CHANGE MESSAGE TO HR MANAGERS (Cotter, 2018) • “Stop fixating on best practice and rather concentrate on conceptualizing next practice. This is the fundamental differentiation between industry followership and leadership.”
  45. 45. CHANGE MESSAGES TO HR MANAGERS (Cotter, 2018) “Stop trying to re-invent the wheel. The wheel is not the future of mobility. Rather take a quantum leap to attempt to re-engineer and harness drone-like technology.” “Stop thinking HR for HR and start practising HR for business.”
  46. 46. CHANGE MESSAGE TO HR MANAGERS (Cotter, 2018) • "HR Managers & -Professionals will have to transform to Behavioural Economists who trade in competitive predictive analytics and business intelligence and who have an in-depth and rich understanding of the mechanics (structures, processes, systems & operations) and dynamics (culture, values, emotions & attitudes) and how these influence key business decision-making"
  47. 47. CHANGE MESSAGE TO HR MANAGERS (Cotter, 2018) • "HRM must be instrumental in and at the forefront of the I-Q-C-A-P drivers of business performance, namely: Innovation; Quality; Compliance; Agility and Processes (to optimize productivity), in their quest to transform and actualize to become strategic performance advisors."
  48. 48. CONCLUSION •As a matter of urgency, CHRO’s and CLO’s and -professionals need to seriously address some of the strategic deficiencies (identified by means of the mini surveys) throughout the respective value chain functions and implement the recommended improvement strategies to graduate from a transactional (level 2 of maturity) to strategic performance advisors and strategic learning partners (level 4), respectively.
  49. 49. CONTACT DETAILS • Dr. Charles Cotter • (+27) 84 562 9446 • charlescot@polka.co.za • LinkedIn • Twitter: @Charles_Cotter • https://www.facebook.com/CharlesACotter/ • http://www.slideshare.net/CharlesCotter

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