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Organizational Development and SHRM_Zone of Synergy

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Exploring the Zone of Synergy (ZoS) and levels of maturity of cooperation between Organizational Development (OD) and Strategic Human Resources Management (SHRM)

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  • Thanks for the acknowledgement, Herbert - much appreciated.
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Organizational Development and SHRM_Zone of Synergy

  1. 1. THE SYNERGY BETWEEN ORGANIZATIONAL DEVELOPMENT (OD) AND STRATEGIC HRM CHARLES COTTER PhD, MBA, B.A (Hons), B.A www.slideshare.net/CharlesCotter PROTEA O.R. TAMBO. KEMPTON PARK 5 JULY 2019
  2. 2. THE ZONE OF SYNERGY (ZoS) BETWEEN OD AND SHRM OD SHRM ZONE OF SYNERGY – FUTURE-PROOFING ORGANIZATIONS 1. Data collection 2. Diagnosis & Analysis 3. Action Planning 4. Targeted & customized Interventions 5. Monitoring, Evaluation & Reporting Sustainable competitive advantage Proactive, responsive & agile environmental scanning Future-focused Full-fledged & legitimate Governance Framework (Vertical) Alignment & (horizontal) integration TRANSFORMATIONAL GOAL: ORGANIZATIONAL EFFECTIVENESS TRANSFORMATIONAL GOAL: ORGANIZATIONAL COMPETITIVITY
  3. 3. THE ZONE OF SYNERGY BETWEEN OD AND SHRM • OD:  1. Data collection  2. Diagnosis and Analysis  3. Action Planning  4. Targeted and customized Interventions  5. Monitoring, Evaluation and Reporting • SHRM:  Sustainable competitive advantage  Proactive, responsive and agile environmental scanning  Future-focused  Full-fledged and legitimate Governance Framework  (Vertical) Alignment and (horizontal) integration • Transformational Goals: • Organizational Effectiveness and Competitivity • Zone of Synergy: • Future-proofing
  4. 4. 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
  5. 5. THE SYNERGY BETWEEN OD AND SHRM – OD FOCAL POINTS (Cotter, 2019) • Culture –  HIPO • Structure –  Lean • Processes –  Agile • Systems –  Digital Intelligent • People –  Future-fit and Engaged Brand Ambassadors
  6. 6. MATURITY LEVELS OF OD/SHRM CO-OPERATION – APPLYING THE 4 C’s (Cotter, 2019) Level 4: COLLABORATE Level 3: COMPLEMENT Level 2: CO-EXIST Level 1: CONTRADICT DIVERGENCE
  7. 7. 10 LESSONS THAT SHRM CAN LEARN FROM OD PRACTICES (Cotter, 2019) • #1: Scientific methodology • #2: Measurement culture • #3: Behavioural Economists • #4: Solutions-focused • #5: Apply Systems Thinking • #6: Specialization – “Multi-taskers to Task Masters” • #7: Change Advocates and –Champions • #8: Collaborative Consultant (Strategic Facilitator) • #9: Evidence-based HRM • #10: Cutting-edge Operating Model
  8. 8. 6 HIGH PRIORITY STRATEGIC HRM OBJECTIVES AND RELATED ROLES • #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 a high level of 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
  9. 9. BUSINESS INTELLIGENCE (Level 3 of strategic HRM maturity – transformational) HRM STRATEGY (Level 4 of strategic HRM maturity – strategic) HRM GOVERNANCE (Level 1 of strategic HRM maturity – traditional) WORKPLACE ADVOCACY (Level 2 of strategic HRM maturity – transactional) STRATEGIC PERFORMANCE ADVISOR (Cotter, 2019) STRATEGIC TRANSACTIONAL CURRENT FUTURE-FOCUSED FRAMEWORK PREDICTIVE ANALTYTICS
  10. 10. STRATEGIC PERFORMANCE ADVISOR (SPA) – 4 PIVOTAL POINTS (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) - strategic/future-focused; • Business Intelligence (e.g. competitive predictive HR metrics and analytics; future- proofing the business model; creating HIPO; applying evidence-based HRM; knowledge management and trouble-shooting solutions architects) strategic/current; • Workplace Advocacy (e.g. Employee engagement; employee voice; employee retention; succession planning; creating a workplace culture of ambassadors; mainstreaming HRM and future-fit employees) - transactional/future-focused and • HRM Governance (e.g. HR policies and procedures; HR/people risk management, compliance with ethics and King IV corporate governance principles and -Human Capital reporting and HR Auditing) - transactional/current.
  11. 11. 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: • feelings to facts; • from anecdotal to analytical; • from hindsight and insight, to oversight and foresight; • from intuition to intelligence;
  12. 12. 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: • from best practice (imitation) to next practice (innovation); • from a cost to a profit centre and ultimately, • from a business tributary to mainstream. • Generally, this 7-point transformation means an upgrade to Evidence-based HRM."
  13. 13. STRATEGIC HRM “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.” (Cotter, 2018) AGREE OR DISAGREE? WHY?
  14. 14. 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.
  15. 15. STRATEGIC HRM VALUE CHAIN
  16. 16. DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR SPA • https://www.surveymonkey.com/r/BXRKRXG • #1 Embedding HRM strategy in business strategy and able to translate that strategy into deliverable actions • #2 Well-defined, implemented and reported HRM performance and ROI metrics (creating credibility and accountability) • #3 Generating business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions) • #4 Offering a professional, value-adding business proposition sensitive to and supportive of business needs, interests and strategic priorities • #5 Ongoing line management consultation, engagement, coaching and building trusting, collegial and mutually beneficial business relationships
  17. 17. DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR SPA • #6 HR Management and practitioners possess business and industry knowledge, acumen and insight • #7 HRM collaborates with line management to broker meaningful and impactful business solutions • #8 HRM processes, systems and practices are horizontally integrated (bundled), agile, responsive and stream-lined (that enhance productivity and efficiency) • #9 HRM is a transformational initiator, driver and implementer of business change • #10 HRM is technology-savvy innovator, enabling and leveraging best practices (e.g. CoE; Shared Services and e-HRM) • https://www.surveymonkey.com/r/BXRKRXG
  18. 18. LEARNING ACTIVITY • Group discussion: • Critically review and evaluate your current HR performance advising processes and function against the ten (10) best practice criteria. Refer to the link: https://www.surveymonkey.com/r/BXRKRX G • Group Discussion: • Identify gaps and recommend improvement strategies. • Refer to the research findings: https://www.slideshare.net/CharlesCotter/m easurement-and-diagnosis-of-the-strategic- impact-and-value-of-selected-african-hrmld- practices-a-surveybased-studyresearch- findings
  19. 19. HRM STRATEGIC MATURITY MODEL (Cotter, 2017) Level 4: Strategic HRM/L&D (80%+) Level 3: Transformational HRM/L&D (65-79%) Level 2: Transactional HRM/L&D (41-64%) Level 1: Traditional HRM/L&D (0-40%)
  20. 20. STRATEGIC PERFORMANCE ADVISOR (SPA) – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 11-100% 61% 62.0% 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%
  21. 21. 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%
  22. 22. 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) 267 62.0% 8 17% Level 2 (Transactional) #2: Strategic HRM Planning 133 60.0% 5 12% Level 2 (Transactional) #3: HRM Metrics and Analytics 196 53.5% 1 13% Level 2 (Transactional) #4: Strategic Total Rewards Management (STORM) – Principles & Best Practices 155 60.4% 6 16% Level 2 (Transactional) #5: Skills Auditing 149 57.1% 2 13% Level 2 (Transactional) #6: Strategic Learning Partner 154 64.6% 10 14% Level 2 (Transactional)
  23. 23. OVERALL FINDINGS – VALUE CHAIN FUNCTIONS 7-12 #7: Ethics of Africa- based trainers 94 59.0% 4 11% Level 2 (Transactional) #8: HRM Auditing 140 62.9% 9 17% Level 2 (Transactional) #9: Future fitness of HRM/L&D professionals 203 66.8% 11 13% Level 3 (Transformational) #10: Succession Planning 116 71.7% 12 18% Level 3 (Transformational) #11: Job Analysis and -Profiling 80 57.8% 3 15% Level 2 (Transactional) #12: Performance Management 114 61.3% 7 14% Level 2 (Transactional) OVERALL 1 801 61.4% Level 2 (Transactional)
  24. 24. OVERALL FINDINGS • Only x2 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 (71.7% - N = 116) and • Future Fitness of HRM/L&D Pro's (66.8% - N = 203) • The average of these x12 HRM value chain functions is 61.4% (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)
  25. 25. 0 10 20 30 40 50 60 70 80 OVERALL FINDINGS - FREQUENCY DISTRIBUTION 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
  26. 26. SABPP HR AUDITED RATINGS (X39 COMPANIES)
  27. 27. EXPECTATIONS AND PRIORITIES OF BUSINESS EXECUTIVES • CEO’s expect the Human Resources function to play a much more active and participatory role in enabling business strategies. • Senior business leaders consider talent to be perhaps the critical factor in the push for sustainable growth and the need to manage new opportunities and risks in a more complex and interdependent world. • According to The Conference Board CEO Challenge (2013), Human Capital is rated 10% higher than operational excellence as a major challenge for businesses.
  28. 28. WHAT BUSINESS EXECUTIVES ARE LOOKING FOR IN HRBP? • #1: Catalytic Driver of Change • #2: Pro-active Business Thinker • #3: Collaborative Consultant • #4: Purpose-directed Coach • #5: Delivery (results-oriented HR practices) • #6: (Credible and Accountable) Performance Advisor • #7: Strategic Facilitator
  29. 29. 70% 20%10%
  30. 30. ULRICH’S 9 HR COMPETENCIES (2017) • Core competencies:  Strategic positioner  Credible activist  Paradox navigator • Organization enablers:  Culture and change champion  Human capital curator  Total reward steward • Delivery enablers:  Technology and media integrator  Analytics designer and interpreter  Compliance manager
  31. 31. ULRICH’S HR COMPETENCIES (2017)
  32. 32. CHANGE MESSAGE TO HR MANAGERS (Cotter PhD, 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."
  33. 33. STRATEGIC CHANGE AGENDA - IMPROVEMENT RECOMMENDATIONS – SPA (COTTER, 2017) • #1: Transition from transactional to transformational HRM; • #2: Transition from a cost to a profit centre; • #3: Acquisition of more advanced, business relevant skills by HR Professionals; • #4: Migration from manual to automated/digital HRM – 1G to 4G technology; • #5: Migration from fundamentals of people science to the complexities of data science and • #6: Transition from administrative expert to strategic performance advisor.
  34. 34. HRM TRANSFORMATION • According to Grobler (2014), HRM transformation: • “One of the required transformations is that HR professionals should build their own capacity and competence into executive business and HR strategies. • In particular, higher HR skill is required in the areas of leadership, governance, remuneration and training.”
  35. 35. ACTION STEPS/PLAN TO TRANSFORM HR INTO A SPA • Step 1: Strategic Review and Analysis • Step 2: Strategic Role Clarification and Contracting • Step 3: Formulation and Development of Transformational Strategies • Step 4: Implementation of Transformational Strategies • Step 5: Measure and evaluate business impact and results
  36. 36. DIAGNOSTIC TOOLKIT – 13 TOOLS TO MEASURE THE STRATEGIC IMPACT AND VALUE OF HRM/L&D • 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
  37. 37. DIAGNOSTIC TOOLKIT 13 TOOLS TO MEASURE THE STRATEGIC IMPACT AND VALUE OF HRM/L&D • Ethics of African-based 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
  38. 38. POST-TRAINING LEARNING RESOURCES TOOLKIT • Refer to the Dropbox link: • https://www.dropbox.com/sh/w54cdno7a98euah/AAD Iwhp-fXIa5aOT0LZ3Zuqga?dl=0
  39. 39. 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)
  40. 40. CONCLUSION • Key points • Summary • Questions
  41. 41. CONTACT DETAILS

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