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Measurement and diagnosis of the strategic impact and value of selected African HRM_L&D practices: A survey-based study_Research findings

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Diagnostic findings of the measurement of the strategic business impact, value and maturity of the current HRM and L&D practices in 12 focal areas in 9 African countries by means of surveys and change messages and improvement strategies to actualize to strategic performance advisor and strategic learning partner roles

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Measurement and diagnosis of the strategic impact and value of selected African HRM_L&D practices: A survey-based study_Research findings

  1. 1. THE MEASUREMENT AND DIAGNOSIS OF THE STRATEGIC BUSINESS IMPACT AND VALUE OF SELECTED AFRICAN HRM AND L&D PRACTICES: A SURVEY-BASED STUDY ACROSS TWELVE (12) HRM/L&D VALUE CHAIN FUNCTIONS IN NINE (9) AFRICAN COUNTRIES CHARLES COTTER PhD, MBA, B.A (Hons), B.A www.slideshare.net/CharlesCotter APOLLO CONFERENCING HOTEL, RANDBURG 3 APRIL 2019MIKONO SPEAKERS
  2. 2. INTRODUCTION AND BACKGROUND • Despite the strategic business imperative and mounting pressure on Human Resources Management (HRM) to transform its operating model to actualize to a Strategic Performance Advisor (SPA), the tangible results and impact, as reflected on the HRM performance scorecard, have been unimpressive and unconvincing. • This assertion is supported through authoritative and empirical research conducted in South Africa and globally (CIPD, 2014; Cotter, 2017; Deloitte, 2018; KPMG, 2015; LinkedIn Learning Solutions, 2017; McKinsey, 2014; Overton & Dixon, 2016; PWC, 2017).
  3. 3. DEFINING STRATEGIC HUMAN RESOURCES MANAGEMENT (SHRM) • SHRM is defined as an approach to managing people that deals with how the organization’s goals will be achieved through its human resources by means of integrated HR strategies, policies and practices (Armstrong, 2016). • SHRM propositions: ❑ The HR of an organization play a strategic role in it’s success ❑ Human capital is a major source of competitive advantage ❑ It is people who implement business strategy ❑ A systematic approach should be adopted to planning and implementing HR strategies ❑ HR strategies and plans should be integrated with business strategies and plans
  4. 4. STRATEGIC PERFORMANCE ADVISOR MODEL (COTTER, 2019)
  5. 5. STRATEGIC PERFORMANCE ADVISOR MODEL (COTTER, 2019) • HRM Strategy (e.g. embedding HR strategy into business strategy; the use of strategy maps; adopting a strategic mindset and applying strategic management principles and processes); • HRM Governance (e.g. HR policies and procedures; HR/people risk management, compliance with ethics and King IV corporate governance principles; Human Capital reporting; promoting workplace democracy and HR Auditing); • Business Intelligence (e.g. competitive predictive HR metrics and analytics; future- proofing the business model; applying evidence-based HRM; creating HIPO; knowledge management and trouble-shooting solutions architects) and • Workplace Advocacy (e.g. Employee engagement; employee voice; employee retention; succession planning; creating a workplace culture of ambassadors; diversity/inclusivity; mainstreaming HRM and creating future-fit employees)
  6. 6. 6 HIGH PRIORITY STRATEGIC OBJECTIVES (COTTER, 2018) • #1: Attract, acquire and select top talent - promote a competent and competitive workforce i.e. quality of hire; • Role: Cognitive and Intelligent Talent Broker • #2: Transform to a digitally-enabled HRM operating model and design an automated Knowledge Management System; • Role: Strategic Performance Advisor (SPA) • #3: Future-proof the organization, by developing a measurement culture and generating real-time predictive business analytics and –intelligence; • Role: Digital Futurist and –Analyst • #4: Develop an agile High Performance Organization (HIPO) culture and employee engagement; • Role: Behavioural Economist • #5: Mainstream HRM into core business processes, by offering business valued solutions to key organizational problems • Role: Innovative solutions architect • #6: Develop a HRM Governance framework, processes, principles and promote an ethical organizational culture, espousing and enacting core company values. • Role: Advocate, Custodian and Steward of governance and ethics
  7. 7. HRM/L&D 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%)
  8. 8. MEASURING THE STRATEGIC BUSINESS IMPACT AND VALUE OF HRM/L&D • Over the past 20 months, I’ve developed Survey Monkey quizzes, based on compliance of current x12 HRM/L&D practices, measured against approx. 10 best practice criteria (a total of x138 strategic HRM sub-factors), that I’ve used on various training and conference speaking assignments in South Africa, Kenya, Ghana, Zambia, Uganda, Mozambique, Lesotho, Tanzania and Namibia. • N = 1 332. Of these, the vast majority of respondents (approx. 99%) from these nine (9) countries were HR/L&D managers and -professionals, representative of both public and private sector institutions. • The twelve (12) selected focal points, informed by competency profiles, skills requirements and training needs analyses of modern HRM/L&D Professionals of this survey-based study, include the following HRM/L&D value chain processes: ❑#1: Strategic Performance Advisor (SPA) ❑#2: Strategic HRM Planning ❑#3: HRM Metrics and Analytics ❑#4: Strategic Total Rewards Management (STORM) ❑#5: Skills Auditing ❑6: Strategic Learning Partner (SLP)
  9. 9. MEASURING THE STRATEGIC IMPACT AND VALUE OF HRM/L&D • The 12 focal points of this survey includes the following selected HRM/L&D value chain processes: ❑##7: Ethics of Africa-based trainers ❑#8: HRM Auditing ❑#9: Future fitness of HRM/L&D Professionals ❑#10: Succession Planning • #11: Job Analysis and -Profiling • #12: Performance Management Systems • Refer to the following links (for provisional/earlier research findings): • 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
  10. 10. 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.”
  11. 11. OVERALL FINDINGS – VALUE CHAIN FUNCTIONS 1-6 HRM/L&D Value chain process Number of respondents (N) Mean Score Relative Difficulty ranking Standard deviation Level of Strategic Maturity #1: Strategic Performance Advisor (SPA) 210 57% 4 17% Level 2 (Transactional) #2: Strategic HRM Planning 110 61% 7 12% Level 2 (Transactional) #3: HRM Metrics and Analytics 154 52% 1 13% Level 2 (Transactional) #4: Strategic Total Rewards Management (STORM) – Principles and Best Practices 113 55% 2 16% Level 2 (Transactional) #5: Skills Auditing 105 59% 6 13% Level 2 (Transactional) #6: Strategic Learning Partner (SLP) 110 66% 10 14% Level 3 (Transformational)
  12. 12. OVERALL FINDINGS – VALUE CHAIN FUNCTIONS 7- 12 #7: Ethics of Africa- based trainers 73 58% 5 11% Level 2 (Transactional) #8: HRM Auditing 101 62% 8 17% Level 2 (Transactional) #9: Future fitness of HRM/L&D professionals 167 67% 11 13% Level 3 (Transformational) #10: Succession Planning 95 73% 12 18% Level 3 (Transformational) #11: Job Analysis and - Profiling 35 55% 3 15% Level 2 (Transactional) #12: Performance Management 59 62% 9 14% Level 2 (Transactional) OVERALL 1 332 61% Level 2 (Transactional)
  13. 13. 0 10 20 30 40 50 60 70 80 OVERALL FINDINGS – DISTRIBUTION FREQUENCY Strategic Performance Advisor Strategic HR Planning HR Metrics STORM Skills Auditing Strategic Learning Partner Ethics of S.A trainer HRM Auditing Future Fitness Succession Planning Job Analysis Performance Management
  14. 14. OVERALL FINDINGS • Only x3 of the total scope of the study of x12 HRM value chain functions exceed the mean score threshold of 65% (level 3 of strategic maturity - transformational HRM), namely: • Succession Planning (73% - N = 95); • Future Fitness of HRM/L&D Pro's (67% - N = 167) and • Strategic Learning Partner (66% - N = 110). • The average of these x12 HRM value chain functions is 61% (level 2 of strategic maturity - transactional). “Seemingly, current HRM practices are administrative, compliance-driven and transactional and not strategic, commitment-driven and transformational.” (Cotter, 2018)
  15. 15. STRATEGIC PERFORMANCE ADVISOR •“To be a future-fit, Strategic Performance Advisor, who practices evidence-based Human Resources Management (HRM) and who optimally leverages business intelligence for strategic business impact, effectively harnessing Artificial Intelligence (AI) is an imperative for African HR managers and - professionals.” (Charles Cotter PhD, 17 March 2019)
  16. 16. 0 10 20 30 40 50 60 70 STRATEGIC PERFORMANCE ADVISOR - FREQUENCY DISTRIBUTION 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  17. 17. STRATEGIC PERFORMANCE ADVISOR (SPA) – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 11-100% 54% 57% 17% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q2: Your organization's HRM function has well-defined, implemented and reported HRM performance scorecards and ROI metrics (creating credibility and accountability) 1 50% 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) 2 50% Q10: Your organization's HRM function is technology-savvy innovator, enabling and leveraging best practices (e.g. CoE; Shared Services and e-HRM) 3 53%
  18. 18. 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 65%
  19. 19. 0 5 10 15 20 25 30 35 STRATEGIC HRM PLANNING – DISTRIBUTION FREQUENCY 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  20. 20. STRATEGIC HRM PLANNING – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q10: Your organization's HR plan yields a positive ROI, with tangible/demonstrable outcomes and impact i.e. creates sustainable HCM competitive advantages 1 58% Q8: Your organization's HR plan integrates both scientific (HRM metrics, predictive analytics and strategy maps) with artistic (planning) principles. 2 59% 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 59%
  21. 21. STRATEGIC HRM PLANNING – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 27-93% 59% 61% 12% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q1: Your HR Plan is aligned with the organization’s strategic business plans and priorities. 10 67%
  22. 22. THE FUTURE OF HRM METRICS & ANALYTICS? “HRM will have to migrate from the fundamentals of people science to the complexities of data science.” (Cotter, 2017)
  23. 23. 0 10 20 30 40 50 60 70 HRM METRICS AND ANALYTICS - FREQUENCY DISTRIBUTION 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  24. 24. HRM METRICS AND ANALYTICS – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 22-100% 53% 52% 13% 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 46% Q10: Your organization harnesses automation, utilizing a 4-G HRM digital data analysis solution. 2 50% Q3: Your organization has streamlined and systematic HRM metrics processes 3 52%
  25. 25. HRM 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 58%
  26. 26. 0 2 4 6 8 10 12 14 16 STORM (Principles) – DISTRIBUTION FREQUENCY 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  27. 27. STRATEGIC TOTAL REWARDS MANAGEMENT (STORM PRINCIPLES) – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 11-92% 54% 52% 15% 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 43% Q3:Your organization's rewards management practices conduct environmental scanning and are highly attuned, sensitive to and proactively responsive to change. 2 47% Q6: Your organization's reward management practices generate business intelligence, enabling smarter business decision making (operationally and strategically). 3 51%
  28. 28. STORM PRINCIPLES – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q5: Your organization's reward management practices adopt a measurement culture e.g. scorecards, dashboards, metrics, risk analysis and audits etc. 8 59%
  29. 29. 0 2 4 6 8 10 12 14 16 18 20 STORM (Practices) – DISTRIBUTION FREQUENCY 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  30. 30. STORM PRACTICES – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 11-100% 60% 58% 17% 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 64%
  31. 31. 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 52% Q8: Your organization has an efficient, user-friendly and stream-lined job evaluation and job grading process. 2 54% Q2: Your organization adequately and accurately recognizes the knowledge, skills, competencies and experience of employees and rewards are sufficiently flexible and variable. 3 56%
  32. 32. 0 5 10 15 20 25 30 35 40 SKILLS AUDITING – FREQUENCY DISTRIBUTION 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  33. 33. SKILLS AUDITING - WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 22-100% 57% 59% 13% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q3: Your organization trains skills auditors and -raters to use the skills rating instrument properly. 1 51% Q4: Formal appeal mechanisms are in place in your organization and skills assessment results are regularly moderated and reviewed. 2 51% Q9: The outcome of the skills audit generates predictive analytics 3 54%
  34. 34. SKILLS AUDITING - MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q7: Your organization's skills auditing process complies with the 7 E’s i.e. efficient, effective, economical, educational, ethical, empirical and evidentiary. 10 77%
  35. 35. “As Learning and Development professionals, let's liberate – not monopolize - the learning like true revolutionaries." (Charles Cotter, 7 June 2017)
  36. 36. 0 5 10 15 20 25 30 35 40 STRATEGIC LEARNING PARTNER – FREQUENCY DISTRIBUTION 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  37. 37. SLP – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 40-100% 64% 66% 14% 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 59% Q9: Learning and Development proactively anticipates and prepares employees to be future-fit and the organization to be future-proof 2 63% Q3: There is direct and active engagement, consultation and participation of line management in all learning processes 3 64%
  38. 38. SLP – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q7: When utilizing outsourced training providers, L&D ensures performance-directed, Service Level Agreements are in place 10 73%
  39. 39. 0 5 10 15 20 25 30 35 ETHICS OF AFRICA-BASED TRAINERS – FREQUENCY DISTRIBUTION 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  40. 40. ETHICS OF AFRICA-BASED TRAINERS – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 35-100% 57% 58% 11% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q12: African trainers' conduct is morally corrupt. 20 64% Q18: African trainers demonstrate a sense of duty and commitment to faithfully serve the training profession. 19 63% Q10: African trainers' actions do not comply with professional standards. 18 62%
  41. 41. ETHICS OF AFRICA-BASED 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 48% Q4: South African trainers sometimes discredit the training profession by associating with unscrupulous business owners. 2 49% Q13: South African trainers' actions comply with regulatory standards and training legislation. 3 52% Q2: South African trainers are sometimes guilty of misconduct. 4 52% Q6: South African trainers sometimes violate the organizational code of conduct. 5 53%
  42. 42. 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"
  43. 43. 0 5 10 15 20 25 30 35 40 HRM AUDITING - FREQUENCY DISTRIBUTION 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  44. 44. 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 55% Q8: All stakeholders have agreed on the HRM Audit reporting template and there is general buy-in and support from the key stakeholders, especially senior management and the labour unions. 2 59% Q6: All HRM Auditors are properly trained and competent in performing their auditing role and the appropriate and relevant use of HRM Auditing tools. 3 59%
  45. 45. HRM AUDITING – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 22-100% 60% 62% 17% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q1: The HRM Audit is objective and independent from other HRM governance processes. 10 67%
  46. 46. 0 5 10 15 20 25 30 35 40 45 50 FUTURE FITNESS SCORE OF HRM/L&D PRO's - FREQUENCY DISTRIBUTION 41-50 51-60 61-70 71-80 81-90 90-100
  47. 47. A-B-C (ALWAYS BE CREATING) REQUIREMENT OF FUTURE FIT HRM/L&D CONSULTANTS "For a kindergarten teacher, ABC are the building blocks of the alphabet; for a corporate communications specialist, ABC is their message gospel defined by accuracy, brevity and clarity and for a sales consultant, ABC is their motivational mantra, Always be Closing. However, for a future-fit, independent training contractor, ABC is their business philosophy, Always be Creating. They have to unlock their creative genius by constantly creating meaningful learning content; by creating mutually beneficial business relationships; by creating future-proof sources of differentiation and competitive edge; by creating innovative and immersive learning experiences; by creating a vibrant stream of collaboration opportunities and by creating significant learning impact and optimal learning solutions." (Charles Cotter PhD, 9 January 2019)
  48. 48. FUTURE FITNESS OF HRM/L&D PROF’s – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 42-100 64% 67% 13% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q2: My professional HRM/L&D status and -brand equity is typified by a high degree of differentiation, therefore I'm compensated at a premium rate (top dollar). 1 56% Q9: I'm a responsible and responsive digital citizen, who has mastered the ability to navigate, curate, analyze and communicate HRM/L&D messages via digital media sources across an array of sophisticated technological platforms. 2 61% Q10: I'm a hyperconnected collaborator, with the analytical ability to 3 63%
  49. 49. FUTURE FITNESS OF HRM/L&D PROF’s – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q5: I constantly demonstrate a high degree of resilience, flexibility and stealth-like agility, especially during turbulent times of change in the workplace. 10 73%
  50. 50. 0 5 10 15 20 25 SUCCESSION PLANNING – DISTRIBUTION FREQUENCY 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  51. 51. SUCCESSION PLANNING – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q9: Succession planning frequently scans the micro, market and macro business environments, is consistently reviewed and is agile in it’s response. 1 67% 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. 2 67% 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" 3 68%
  52. 52. SUCCESSION PLANNING – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 22-100% 76% 73% 18% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q1: Succession planning is a strategic driver of sustainable organizational development and competitive advantage. 10 79%
  53. 53. 0 2 4 6 8 10 12 JOB ANALYSIS AND –PROFILING – DISTRIBUTION FREQUENCY 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  54. 54. JOB ANALYSIS AND –PROFILING – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 29-93% 53% 55% 15% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q3: Your organization's Role/Job Analysis and -Profiling processes integrate both scientific, quantitative (intelligence - 80%) with subjective, qualitative (intuition - 20%) configuration of methodology and valid tools. 1 48% Q10: Your organization's Role/Job Analysis and -Profiling processes are dynamic and agile - regularly and systematically monitored, reviewed, evaluated and adapted (committed to continuous improvement processes). 2 50%
  55. 55. JOB ANALYSIS AND –PROFILING – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q9: Your organization's Role/Job Analysis and - Profiling processes are a systematic and synergistic precursor to the Job Evaluation/grading process. 10 63%
  56. 56. 0 5 10 15 20 25 PERFORMANCE MANAGEMENT SYSTEMS – DISTRIBUTION FREQUENCY 21-30 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  57. 57. PERFORMANCE MANAGEMENT SYSTEMS – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 22-100% 61% 62% 14% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q6: The PMS of your organization is user-friendly, simple and understandable for all users. 1 56% Q10: The PMS is a continuous process that accurately identifies multi- level (individual, team & organizational) performance & skills gaps i.e. generates crowd-sourced (360-degree) performance intelligence & - analytics, which is effectively leveraged as a performance development & -improvement management tool. 2 57% Q8: The PMS of your organization is vigilant and efficient in identifying 3 58%
  58. 58. PERFORMANCE MANAGEMENT SYSTEMS – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q7: The PMS of your organization provides an opportunity to recognize and (financially and non- financially) reward performance excellence. 10 69%
  59. 59. 10 HIGH PRIORITY STRATEGIC HRM/L&D GAPS • #1: Your organization's reward management practices are future-focused (ensuring that the organization is future-proof) – 43% • #2: Your organization has re-injected scientific principles, processes and tools and credibility into HRM Metrics e.g. 3 E’s - evidentiary, empirical and ethical – 46% • #3: Your organization's rewards management practices conduct environmental scanning and are highly attuned, sensitive to and proactively responsive to change – 47% • #4: African trainers sometimes violate copyright and intellectual property rules and are guilty of plagiarism – 48% • #4: Your organization's Role/Job Analysis and -Profiling processes integrate both scientific, quantitative (intelligence - 80%) with subjective, qualitative (intuition - 20%) configuration of methodology and valid tools – 48%
  60. 60. 10 HIGH PRIORITY STRATEGIC HRM/L&D GAPS • #6: African trainers sometimes discredit the training profession by associating with unscrupulous business owners – 49% • #7: Your organization's Role/Job Analysis and -Profiling processes are dynamic and agile - regularly and systematically monitored, reviewed, evaluated and adapted (committed to continuous improvement processes) – 50% • #7: Your organization harnesses automation, utilizing a 4-G HRM digital data analysis solution – 50% • #7: Your organization's HRM function has well-defined, implemented and reported HRM performance scorecards and ROI metrics (creating credibility and accountability) – 50% • #7: Your organization's HRM function generates business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions) – 50%
  61. 61. IMPROVEMENT RECOMMENDATIONS • It is recommended that HRM/L&D professionals either develop a HRM Checklist of the x42 deficient factors and/or convert into a weighted HRM Scorecard and utilize as either a HRM Risk Management tool and/or HRM Performance Evaluation and Auditing tool, respectively.
  62. 62. TRANSFORMING TO A STRATEGIC PERFORMANCE ADVISOR • According to Cotter (2014), business executives expect SPA’s to fulfil the following key roles: • #1: Catalytic Driver of Change; • #2: Pro-active Business Thinker; • #3: Collaborative Consultant; • #4: Purpose-directed Coach; • #5: Delivery (results-oriented HR practices); • #6: Strategic Facilitator and • #7: (Credible and Accountable) Performance Advisor
  63. 63. 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."
  64. 64. TRANSFORMING TO A STRATEGIC PERFORMANCE ADVISOR • Cotter (2017) suggests the following transitional improvement strategies to actualize to a SPA: • Transition from transactional to transformational HRM; • Transition from a cost to a profit centre; • Migration from fundamentals of people science to the complexities of data science; • Acquisition of more advanced, business relevant skills by HR Professionals; • Migration from manual to automated/digital HRM – 1G to 4G technology and • Transition from administrative expert to strategic performance advisor. • “Stop thinking HR for HR and start practising HR for business.” (Charles Cotter PhD, 2018)
  65. 65. 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.”
  66. 66. THE FUTURE OF LEARNING AND DEVELOPMENT (COTTER, 2018) • #1: Transition from e-learning to mobile (m)-learning • #2: More video-based, on-demand micro-learning • #3: Learners taking more ownership and responsibility for their learning • #4: More use of Virtual Reality in the traditional learning space • #5: Technology-enabled and digital learning devices • #6: Transition from training facilitators to Learning Navigators • #7: Less focus on learning content and more focus on the learner experience • #8: Less focus on learner assessment and qualifications and more focus on holistic application and transfer of learning • #9: Less formal training and more focus on social and experiential learning (refer to the 70-20- 10 model of learning) • #10: Transition from books to MOOC’s • #11: Use of a Strategic L&D Scorecard and • Adoption and implementation of the Strategic L&D Conceptual Framework (Cotter, 2017).
  67. 67. IMPROVEMENT RECOMMENDATIONS – STRATEGIC LEARNING PARTNER (SLP) • CURATE - from providing training programmes to providing business valued learning solutions; • CREATE – an enabling high impact learning organization (HILO) culture and improved learner experience (Lx); • NAVIGATE - from being people pleasers and comfort-seekers to making employees competitive and competent; • MIGRATE - from traditional, manual methods to technology-enabled learning; • EDUCATE - transform from training departments to learning factories (repositories of knowledge) and • GRADUATE - from being transactional (administrative) to being transformational (strategic) i.e. from training administrators to being strategic learning partners.
  68. 68. 10-STEP CHANGE PROCESS CYCLE • Step 1: Conduct a gap analysis (by means of the Weighted, 74 item Strategic L&D scorecard); • Step 2: Formulate and implement change management and improvement interventions; • Step 3: Ensure the horizontal integration (bundling) across the L&D value chain; • Step 4: Formulate 3-year L&D strategy and facilitate vertical alignment of this L&D strategy with the organisational business strategy (KPI #1); • Step 5: Foundational work – invest heavily in the input factors (refer to KPI #6 and #7);
  69. 69. 10-STEP CHANGE PROCESS CYCLE • Step 6: Initiation work – roll out the transformation process (refer to KPI #3, 5, 8 and 10); • Step 7: Periodically monitor, track, measure and report on strategic L&D metrics (refer to KPI #2); • Step 8: Conduct an annual audit to evaluate the strategic impact of L&D, with KPI #4 and #7 as the yardstick; • Step 9: Generate business and performance management intelligence and • Step 10: Feed this business intelligence back into the system, make the necessary revisions and re-initiate new 3-year L&D cycle/process.
  70. 70. EVIDENCE-BASED HRM • Evidence-based HR refers to a process in which the organization evaluates any decision or process against data, real experience, expert opinions, and/or other types of information to ensure the decision is likely to have the desired outcome. • For this to work best, the “evidence” used should be purposefully sought out. • When data is taken from multiple sources, ensure it’s applicable within your context.
  71. 71. 7-POINT HRM TRANSFORMATION (COTTER PhD, 11 JANUARY 2019) • "In order to be feasible, to prosper professionally in 2019 and to be future-fit, HRM will have to exchange the currency in which they trade from old notes to noteworthy, Industry 4.0 and business relevant denominations and value. Specifically, this change translates from: • 1. feelings to facts; • from 2. anecdotal to analytical; • from 3. hindsight to foresight; • from a 4. business tributary to mainstream; • from 5. intuition to intelligence; • from 6. best practice (imitation) to next practice (innovation) and ultimately, • from 7. a cost to a profit centre. • Generally, this 7-point transformation means an upgrade to Evidence-based HRM."
  72. 72. COLLABORATIVE INTELLIGENCE ARCHITECTURE OF FUTURE WORKPLACES MODEL (COTTER, 2019)
  73. 73. DIAGNOSTIC TOOLKIT • Strategic Performance Advisor https://www.surveymonkey.com/r/BXRKRXG • Strategic HR Planning https://www.surveymonkey.com/r/5SNGNTW • HRM Metrics and Analytics https://www.surveymonkey.com/r/XBSFY53 • Strategic Total Rewards Management (STORM) https://www.surveymonkey.com/r/PQWGNJJ and https://www.surveymonkey.com/r/PHKFGQL • Skills Auditing https://www.surveymonkey.com/r/5RDYSFT • Strategic Learning Partner https://www.surveymonkey.com/r/VW6NC5W
  74. 74. DIAGNOSTIC TOOLKIT • Ethics of African Trainers https://www.surveymonkey.com/r/5B7XLPD • HRM Auditing https://www.surveymonkey.com/r/B3PYYCT • Future Fit HRM/L&D Consultant https://www.surveymonkey.com/r/8HVNTW3 • Succession Planning https://www.surveymonkey.com/r/J7S6VSH • Job Analysis and -Profiling https://www.surveymonkey.com/r/732GHMP • Performance Management https://www.surveymonkey.com/r/3GXW72Z
  75. 75. HRM PERFORMANCE REPORTING – LEVEL 6 (IMPACT) • In terms of HRM Performance Reporting, the collective outcome of this survey- based business intelligence, should be pitched/pegged at level 6 (Impact) of the Knowledge Hierarchy.
  76. 76. LIST OF SOURCES • Armstrong, M. (2016). Armstrong’s Handbook of Strategic Human Resource Management. 6th edition. Kogan Page: London. • Cotter, C.A; Gerber, P.D. & Schutte, N. (2018). Proceedings of AC 2018 in Prague, pg. 142-149, Academic Conferences Association, Czech Technical University, ISBN 978-80-88085-20-1. Refer to file:///C:/Users/charl/Downloads/ProceedingsofAC2018inPrague.pdf • Cotter, C.A (2017). Transforming learning and development into a strategic, value-adding business solution: A conceptual and business-minded framework. PhD thesis. NWU. • https://www.linkedin.com/pulse/cotters-independent-trainer-prosperity-future-fit-8-cotter-phd/ (accessed 10 December 2018) • https://www.linkedin.com/pulse/future-fit-code-10-strategies-future-proof-your-career-charles-cotter/ (accessed 10 December 2018) • https://www.linkedin.com/pulse/reality-check-chief-human-resources-officers-africa-hrm-cotter-phd/ (accessed 12 June 2018) • https://www.slideshare.net/CharlesCotter/balanced-business-scorecared-performance-management-best-practice-process-and-principles (accessed 31 March 2019) • https://www.slideshare.net/CharlesCotter/charles-cotters-phd-research-findings-recommendationsstrategic-ld (accessed 9 September 2018) • https://www.slideshare.net/CharlesCotter/diagnosis-of-the-strategic-maturity-of-hrm-and-ld-practices-africaextended-scope (accessed 9 September 2018)
  77. 77. LIST OF SOURCES • https://www.slideshare.net/CharlesCotter/measurement-of-the-strategic-maturity-of-hrm-and-ld-practices-africa (accessed 12 June 2018) • https://www.slideshare.net/CharlesCotter/strategic-human-resources-management-and-hr-business-partnering (accessed 24 February 2019) • https://www.slideshare.net/CharlesCotter/strategic-human-resources-management-metrics-and-analytics (accessed 24 February 2019) • https://www.slideshare.net/CharlesCotter/strategic-learning-and-developmentld-metrics-and-strategic-learning-partnering (accessed 17 November 2018) • https://www.slideshare.net/CharlesCotter/strategic-learning-and-development-masterclass-2020 (accessed 21 June 2018) • https://www.slideshare.net/CharlesCotter/strategic-workforce-planningsuccession-planninghrbphrm-metrics (accessed 1 July 2018) • https://www.slideshare.net/CharlesCotter/training-needs-analysis-skills-auditing-evaluation (accessed 21 June 2018) • Acknowledgement and credit for images: Brighton Abaasa; https://exceldashboardschool.com/human-resources-kpi-scorecard/ ; https://www.gapingvoid.com/ and Mikono Speakers
  78. 78. CONCLUSION AND WAY FORWARD • Seemingly, the diagnosis of the current strategic HRM and L&D practices and their future-fit status doesn't look promising. • 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. • Failing this the prognosis of the future-proofing of the HRM/L&D professions appears very bleak. • “Based on my research, I anticipate that the next 6 years culminating in 2025 will be a profession-defining time period for Human Resources Management (HRM) practices. In retrospect and reflection, it will either be regarded as a golden era in which HRM was able to transform to a Strategic Performance Advisor (i.e. yardstick of excellence) or worst-case scenario, be the age of HRM extinction (i.e. graveyard of mediocrity). Metaphorically, either Jurassic Park (resting place) or Disney World (podium place).” (Charles Cotter PhD, 28 February 2019)
  79. 79. CONTACT DETAILS

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