Tank you I am very pleased to be hereGreat topic I work all the time with HR ad other business leaders I have had a HR GM role in a large prganisarioinI have even ben the Ayckland Branch presifent of the HRINZ Have to pin my colours t the ,asg here I don’t believe in HR transformational leadership I don’t belive HR or marketing or IT or even Finance can transform organisations by themselevesBut I do believe leaders can help transform organisations And I do believe people engagement is a strategic issue
So why is HR disliked so much ?One of the dirty little secrets of HR – Human Resources as a professional practice – is that it’s not always about the people and humanizing brands. Not really, anyway. Some HR professionals have more in common with the Governance, Risk and Control department of the enterprise. HR sometimes gets a bad rap for being more concerned with limiting risk to the corporation than it is with making sure the employees – people, everyone – are working well and that the company’s culture can sustain its people in a fast-paced business.Misunderstood Or lacking competence ?
Ok if we are going to talk about leadership lets define it It is about behaviour not position Love this picture as it cntains so many sterotypesThe high status leader All wide Conducting the orchestra or admonishinh his flicokWhile the followers look on in humility or is ot boredom?
And boy do we need more leadership Whatever survey you look at bemoas the lack of leadership in our organisations Deloitte just released its Human Capital Trends 2013, a year-long research effort which looks at talent and leadership trends around the world.The research explains why talent and leadership gaps have become the top business challenge this year. The Conference Board survey of CEOs just found that Human Capital is the #1 challenge on the minds of CEOs (more than 10% higher than “operational excellence”)In the Deloitte study, more than 2/3 of HR leaders cite leadership and technical talent gaps as their top business challenges. Bersin research shows that leadership gaps and lack of career mobility are key problems in HR.Skills from outside the US are in great demand. Demand for H1-B Visas (highly skilled immigrants) outstripped the entire year’s supply in the first week!Our education system is not keeping up. McKinsey research shows that 45% of business leaders believe that newly minted college students do not have the entry level skills they need to start work without training.
So I want to talk about why peope stiff is important And also attenpt to adress why Hr lacks influence Look at the HR Leadership skills required And finish by talking about a opportunity and a way forward
Som of yo may be gfanilair with VucaThere is a definite perceptin is that the new reality is scaroer than the old reality It might have always been thus but It os clear the level of uncertainty has increased post GFC
And if we think about some of the pope implications of that context accorsing to Gallop 1-15% of employees are acting against the organisations interests And that doesn’t inlcude the a significant ambivalent minority In the US and Europe the ratio of HR eaders has shifted from 1L100 to 1:500 Indiation of a loss of loyalty posy restrucuture mayhem Thre is growing concern abut mutlinationals tax avoidance, emplotee treatment iAsian factories The drive for shareholder value such a strong motivator neglects many of the stakeholder relationships Employees, communiites suppliers , our planet IN the ewestern world particualrrygonerments are in austerity mode and trying to trim costs and peopole
And lets not forget the work environment Busy buey busy
There are a large number of sognificant challenges with huge peopole implications The concept of the ‘chickenless head’ tells a story that is more common today. The organisation’s rank and file employees may carry on doing a reasonably good job of pleasing its customers and producing quality goods and services, unhampered by the remoteness of top management, until, because of mismanagement of its financial affairs, it becomes bankrupt or is taken over. Companies rarely destroy shareholder value because their employees at all levels below the very top are not doing their jobs. Trusted longer term mangement of the Company for the next generation of astakeholdersA narrow view of corporate governance is that it is about board structures and procedures, compliance with company law, accountability to shareholders, correct reporting procedures, audit and remuneration committees and the conduct of annual general meetings. A broader perspective is that it is also about being clear about the company’s purpose, taking into consideration the full set of relationships between a company and all its stakeholders and the issues that arise in the context of these relationships. Increasingly, as concerns about the economy fade, the focus will be on the impact of organisations on society and on the environment. Organisations, in adapting to the challenges of the century’s second decade, will need to redefine success, to question the values which underpin their actions and to accept new frameworks, whether based on regulatory action by governments or on self-regulation. So how is HR responding
Well our profession gives itself a 7 out of 10 This is from tCIPD survey Welcome to the 2012 edition of our HROutlook: A variety of leader perspectivessurvey report. 107 HR Leaders 400 other business Leaders Are we deluding ourselves?Well you might think so if you considered
Here are some of the common criticisms of HRAnnotying perhaps Containing some truth absolutely Bit that is not the main reaon in my book why HR lacks influence How may people here have a HR strategy?I bet ot has some of these things in it
Is it truly a competetibestartegyWuld it make much diffrence if your competeors got hold of it Or would their strategie all be similar?What is going on here It it about recognising the most signficant issues Well no
The same CIPD outlook survey suggests there is a pretty good correlation with an identification of the issues Cost reduction Developing agility Greater focus on customers So we may understand the issues but how involved are we in strategy Partculalry in NZ where company size is smaller Where there are few HR bureacracies and an operational bias to HR delivery in our many small to medim organisations Well the answer in the UK at any rate was not as much as we think we are
Is this just a perceptial difference Or does it tell us something about our biases and beliefs?We may be in the room but are we having any impact?
Well the answer might be an interesting yes and no We seem to be much better at keeping the organisation to account on it behaviours Being the consciousness of the organisation But again we have a significnat difference in opinion when it comes to broader business issues it suggests to me that this may be about business knowledge but it is certaibly about influence And I am not the only one to think that
When asked what would ake the biggest difference to HR strategic contributionSo back to leadership HR needs to develop its confidence and ability to influence Business and commercially savvy Measurment and Evidence based That’s fair enough but where should HR leaders focus their attention?
One Fortune 500 CEO, distilled HR’s top priorities into three fundamental objectives: focus on talent and develop the next generation of leaders, On the one hand there are concerns about competence in the sense of the ability to create a clear vision and to articulate it in such a way as to inspire and motivate. On the other hand, following recent cases of fraud and suspect share dealings, there are severe doubts about the integrity of leadership. (2) standardize HR policies, programs and operations so the company can quickly reconfigure itself in response to changing global market conditions; and (3) focus on workforce management to enable new business models including M&A, divestitures, alliances and joint ventures and new market entry.HR operations are no longer the primary focus of HR Transformation (HRT). With so many companies having already accomplished big improvements, efficiency has become table stakes. The real value in HR Transformation today involves leveraging those operational improvements to support and align with the broader business strategy. That’s the definition of Business-driven HR
Not one metric, but a set of metrics and analyses are the baseline for any effective HR leader to professionally lead the HR function in today's world. At its most basic, every HR leader should have a really solid understanding of the shape, composition, profile and major dynamic elements in their workforce. Key elements to this are the foundational metrics that are then used to build all other analysis. These include headcount, hires, terminations, transfers, promotions and the entire core demographics associated with these metrics, e.g. location, job family or role, salary grade, employment status, diversity, gender, tenure, age and so on. Essentially, the nature and shape of the workforce in terms of the number and proportion of people in different employment groups and the numbers entering/leaving and moving through the company. This information represents the starting point for decisions regarding employee deployment, understanding risk and effectively delivering talent to the business. HR leaders can then leverage this data to predict and anticipate future staffing needs, better understand employees' behaviour and help create teams that fit well together.Understanding the dynamics and makeup of the workforce has become increasingly critical as we move to a more globalized workplace. HR managers responsible for employees around the world must be familiar with this segmented and mobile workforce. Whether a company employs 30 or 30,000 people and is located in one country or 100 countries, understanding the core attributes and characteristics about the workforce is critical for delivering effectively targeted strategies.
The same group of corporate officers suggested that each division and major location should have a "superb HR professional who is strategic, impact-oriented, direct, tough-minded, and effective at influencing peers and senior management." They also suggested that strategically focused HR professionals must:Help forge the link between business strategy and talent development. Only 7% of the officers agreed that their companies link business strategy to specific talent pool requirements.Serve as the thought leader in understanding what it takes to attract talent or be the barometer of the organization, understanding morale, recruiting and retention trends, as well as other key people issues.Facilitate the talent review process and action plans by having a nose for weak spots (people, structures, systems, processes, culture, etc.) and being proactive in pushing senior leadership to deal proactively with those weak spotBecome the architect of the development strategy for the top-tier senior leadership group. This requires good assessment and listening skills, candor and insight.Take an outside in perspective Drive value thorugh the organidsations leaders Be a xcentre of excellence for peopoleactivitiesBoldness, imagination and a bias for action
Happy to talk about a Transforming HR Leader And the multiple hats this requires Do buinesseaders understand the link between employee commitment and business results WHR leaders need to be better at infleunceinff business leaders about the value of investing in people A good example to take would be the work of Frederick Reichheld who, in his book The Loyalty Effect, showed the strength of the relationship between business success and the ability to build customer loyalty, and how this, in turn, is a function of employee loyalty.4 Ian Wilson had identified what is needed in a HR system vision and sense of shared purpose, beyond profit and shareholder value • inspiring leadership • empowerment of the workforce • the customisation of work – tailoring job content, hours and compensation packages to meet individuals’ needs • a climate of equity, respect and due process • reduced volatility in employment patterns • increasing employability • first-rate on-site amenities and services.
Relationship Management—the ability to manage interactions with and between others with the specific goal of providing service and contributing to organizational success.Consultation—the art of providing direct guidance to organizational stakeholders (e.g., employees and leaders) seeking expert advice on a variety of situations or circumstances.Organizational Leadership and Navigation—the ability to direct initiatives and processes within the organization with agility and to gain buy-in from stakeholders.Communication—the ability to effectively exchange and create a free flow of information with and among various stakeholders at all levels of the organization to produce impactful outcomes.Diversity and Inclusion—the art of managing human resources both within and across borders and cultures.Ethical Practice—the integration of core values, integrity and accountability throughout all organizational and business practices.Critical Evaluation—skill in interpreting information (e.g., data, metrics, literature) to determine return on investment (ROI) and organizational impact in making business decisions and/or recommendations.Business Acumen—the ability to understand business functions and metrics within the organization and industry.
But we still have an enormous gao between theory and practice And as a profession we are still open to the same criticisms we had 10 years ago
Align business strategy and HR strategy. Make sure your HRT project kicks off with HR leaders asking business leaders about their HR priorities. An HR strategy should be directly linked to the business strategy and long range plan.Develop the capabilities to build new HR services. As HRT evolves to become a general mechanism for innovation and continuous improvement (rather than a project to solve specific problems), HR must change the way it develops new services and capabilities to meet the needs of the business. And that change must be in the direction of faster – with more agility and flexibility built in every step of the way.Make talent a real priority. Businesses often say that people are their most important asset, but that talk isn’t always reflected in management focus, commitment and investment. Demographic trends tell us the next generation of business leaders will need to focus unprecedented attention on talent. And since good talent takes a decade to develop, it's important to start sooner than later.Focus on workforce effectiveness. This is the real prize in HR, though it seems many HR leaders have abdicated the responsibility. That might be why HR has become a support function that is less relevant today than it was 20 years ago. Get focused on workforce effectiveness and you’ll become the resource your business partners have been looking for all along.
This is the real elephant in the room Why does this gap exist?The majority of HR professionals currently function in administrative roles such as employee relations, recruitment, employment, compensation, benefits, workers' compensation, health and safety, and security, among many other activities. While these are important functions, they can easily occupy the majority of HR professionals' time and resources. Thus, the higher value-added initiatives may not receive adequate time and attentionThe majority of HR professionals are hard-working and dedicated individuals who often feel overwhelmed with their administrative and largely tactical and reactionary workloads. The majority of HR professionals desire more credibility and influence with the CEO/president and senior management team but are seldom regarded as strategic business partners.The majority of HR professionals are unaware of a major paradigm shift that is occurring in their profession and the risk to their future careers.The CEO/president and senior management team are unaware of the potential contributions of the competent and strategic-oriented HR professional.May be we are becoming more business savvy Maybe we are more confident in challenging and advocating for our peopleWe lack a Vision f or the furureTraditional business models are under severe pressure The drive for shareholder value such a strong motivator neglects many of the stakeholder relationships Employees, communiites suppliers , our planet New generations are shifting values Leadership and Engagement startegies are underscookedShareholder value needs to move towards shared purpose Where is the Vision ?the bold steps forward True HR leadership
Are we so busy we don’t have time to lead?Leadership thinking has always veebn changing The latest view is smething called contextual leadership Leadership that is more sensitive to its unique context its enviroment and the views of its many stakeholders
All the current challenges present commesurateopportunitirsThe need is there Stop trying to be everyhtingfo everyone and focus on value creationIf you are a senior HR professional, you may be struggling to establish credibility and expand your influence with the CEO/president and senior management team. You may also find yourself spending too much time on tactical versus strategic activities: "Sure, working smarter sounds good, but how do I accomplish this with limited staff and time and other resource constraints?“The bad news is that in either scenario, a significant gap exists between the needs of the business and potential contributions of HR professionals in many organizations. The good news is that the gap represents an opportunity, and here's why. During research conducted by McKinsey and Company, corporate officers (CEOs/presidents and their direct reports) were asked, "Do you believe that HR could be a high-impact business partner?" Eighty percent of the corporate officers said it was critical or very important that HR be in that role. However, only 12% believed they were actually playing that role within their respective organizations. Boldness, imagination and a bias for action
The Challenge of Change:Transformational HR leadershipGraham Hart, Director, Leadership by Design
“The single mostimportant strategicpillar of any greatenterprise is people,”best-selling author Jim Collins
The average organization forfeits more than $1 millionper year through less-than-optimal leadershippractices.• Nearly three-quarters of all leadership teams fail toachieve business goals.• A 2008 survey by Egon Zehnder International foundnearly six in 10 global leaders consider a lack ofleadership a major cause of their company’s inabilityto deal with business change.Leadership Vacuum
• Why does HR Matter so much more today?• Building trust and influence in HR value creation• Leading major change across a larger organisation• Implementing the right HR enablers to deliver change• The qualities of a transformational HR LeaderOverview
It’s a VUCA worldVolatileComplexUncertainAmbiguous
Near collapse of the global financial systemReassessment of strategy and cultureLoss of morale and erosion of loyaltyGrowing public concern about actions of globalorganisationsSignificant morale and performance issues in publicsectorWhy does HR matter?
Research by Gloria Mark (reported in The New York Times Magazine in October 2005:“Meet the Life Hackers” by Clive Thompson),The Average Worker is interrupted every 11minutesIt takes thosesame workers about 25minutes on average toreturn to the original task
A leadership vacuumCompetence to visionTrust and integrityManaging Complexity and “Busyness”New Social contractThe rise of StewardshipBroadening GovernanceBuilding Adaptive organisationsBuilding trust and influence in HRvalue creation
Does HR deliver competitiveadvantage through people?•55%HRLeaders•26%BusinessLeaders
Why are annual performance appraisals so time-consuming-- and so routinely useless?Why is HR so often a henchman for the CFO, finding ever-more ingenious ways to cut benefits and hack at payroll?Why do its communications -- when we can understandthem at all -- so often flout reality?Why are so many people processes duplicative andwasteful, creating a forest of paperwork for every minortransaction?And why does HR insist on sameness as a proxy for equity?Building trust and influence in HRvalue creation
Grow the talent pipelineManage age demographicsMale workforce more diverseReduce additional employment costsUpgrade HRIS systemWould you be bothered if it fell into competitorshandsWill it make that much difference?Pull out your HR Strategy
HR and Business are aligned on top 5priorities today
How involved in strategy are we?6229Setting5135Communicating6035Implementing
• Behaviours 69%• Issues 41%HRLeaders•Behaviours 62%•Issues 22%BusinessLeadersHow well does HR Challenge?
HR executives top scoredEducating and Influencing the lineWhich HR leadership capabilities aremost critical Towers Perrin/IBMAsked if they possessed those skills8% said yes
(1) focus on talent and develop the next generation ofleaders,(2) standardize HR policies, programs and operationsso the company can quickly reconfigure itself inresponse to changing global market conditions; and(3) focus on workforce management to enable newbusiness models including M&A, divestitures,alliances and joint ventures and new market entry.Implementing the right HR enablers to deliverchange
Every HR leader should have a really solid understanding ofthe shape, composition, profile and major dynamicelements in their workforce.Key elements to this are the foundational metrics that arethen used to build all other analysis.These include headcount, hires, terminations, transfers,promotions and the entire core demographics associatedwith these metrics, e.g. location, job family or role, salarygrade, employment status, diversity, gender, tenure, ageand so onThe Shape and Dynamics of YourWorkforce
It is now somewhat trite to say that people are your greatest assetManaging this risk has become increasingly important, as a study by theEconomist Intelligence Unit found that human capital risks carry the largestpossible weight to business outcomes, greater than any other risk facing acompany.Workforce analytics provides tools to HR Managers to identify and managethese risksHighest performersRetentionTalent bench strengthHuman Capital Risk
Employee AdvocateHuman CapitalDeveloperStrategic Partner Functional ExpertTransformThe qualities of a transformationalHR Leader
Like to be strategic but don’t know howToo much time discussing HR details that don’t relate to thebusinessThey seek line manager approval and leadership and don’tprovide it themselves enoughLack detailed business knowledge to discuss it in the businessDon’t tie HR initiatives to bottom line enoughThe use jargon that doesn’t appeal to Management or staffDont bring enough to the strategic conversationHavent helped other see why HR is at the top tableStill a Huge gap between theory andpractice
Align business strategy and HRstrategy.Develop the capabilities to build newHR services..Make talent a real priority.Focus on workforce effectiveness.Four Ways to Get More Value Now
Optimistic rather than pessimisticSolutions rather than problembasedAgile rather than fixedInquisitive rather than acceptingCourageous rather than timidSelf aware rather than self-denialComfortable with ambiguityLeadership is driven by your Mind Set
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