Dr. John Boudreau                  Research Director, Center for Effective Organizations                        Professor,...
© 2012 University of Southern California   JB_W   (2)
What’s Changed in 24 Years?• Skinner, Wickham. (1981).   Big Hat, No Cattle: Managing Human Resources.”   Harvard Business...
How HR Spends Its Time Now and Recalling Years Ago(Lawler & Boudreau, “Achieving Strategic Excellence” 2012)              ...
HR’s Actual Progress Since 1995   (Lawler & Boudreau, “Achieving Strategic Excellence” 2012) Percentage of Time           ...
Time Spent Matters!               (Lawler & Boudreau, “Effective HR Management” 2012)                                     ...
Finance Spends Less Time on Strategic Partnership(Boudreau, CFO Magazine online, 2012)                                    ...
Why Might Finance Spend Less Time?• Finance is actually a less frequent strategic  partner• Finance since 2008 is under su...
• Shared Services Have Increased and Relate Positively to HR’s Role in  Strategy and to Organizational Performance• Varyin...
• HR Is Less A Full Partner and More An Implementer Over Time• Less than 1/3 Report Full Partnership• Non-HR Sees Less Imp...
• Advanced Strategy Activities Include       • There is a human capital strategy that is integrated with business strategy...
• Decision Science Sophistication Relates Significantly to HR’s Strategic  Role and Organizational Performance• Non-HR Lea...
Style of Organizational Engagement                                                                     Decisions          ...
• All Three Rated at Moderate Levels• Non-HR Leaders Rate Decision Science Somewhat Higher Than HR• Non-HR Leaders Rate “A...
• System Integration and Automation Increase Over Time• Integration and Automation Show Slight Positive Relationship to HR...
Three Anchors in Decision Analysis           Anchor           Points                      Impact                Effectiven...
• Most Commonly Efficiency, Rather Than Effectiveness or Impact• Slow Increases in Effectiveness and Impact But Still Rela...
Why are you searching under the streetlight?        Because that’s where the light is.Beyond Data: The “LAMP” of evidence-...
• All LAMP Elements Rated Less Than “Somewhat Effective”• Yet All Relate to Both HR’s Strategic Role and Organizational  P...
Extending the Paradigm                                                                            Decisions               ...
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Achieving HR Excellence: A Global and Evidence-Based View - from May 30 Presentation with John Boudreau

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Achieving HR Excellence: A Global and Evidence-Based View. Powerpoint Deck from from May 30 Presentation with John Boudreau highlighting findings from his (and Ed Lawler\'s) forthcoming book.

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Achieving HR Excellence: A Global and Evidence-Based View - from May 30 Presentation with John Boudreau

  1. Dr. John Boudreau Research Director, Center for Effective Organizations Professor, Marshall School of Business University of Southern California 213-740-9814 John.boudreau@usc.edu http://ceo.usc.edu/© 2012 University of Southern California (1)
  2. © 2012 University of Southern California JB_W (2)
  3. What’s Changed in 24 Years?• Skinner, Wickham. (1981). Big Hat, No Cattle: Managing Human Resources.” Harvard Business Review.• Stewart, Thomas. (1996). “Taking on the Last Bureaucracy.” Fortune Magazine.  Why not blow the sucker up? Improvement’s for wimps. I mean abolish it. Deep-six it.• Hammond, Keith. (2005). “Why we Hate HR.” Fast Company © 2012 University of Southern California (3)
  4. How HR Spends Its Time Now and Recalling Years Ago(Lawler & Boudreau, “Achieving Strategic Excellence” 2012) 5–7 Means Current Years Ago Maintaining Records Collect, track, and maintain data on 23.2 13.6 employees Auditing/Controlling Ensure compliance to internal operations, regulations, and legal and union 15.2 12.5 requirements Human Resources Service Provider Assist with implementation and 33.0 30.4 administration of HR practices Development of HR Systems and Practices 13.5 16.7 Develop new HR systems and practices Strategic Business Partner Member of the management team. Involved with strategic HR planning, 12.1 26.8 organizational design, and strategic change © 2012 University of Southern California
  5. HR’s Actual Progress Since 1995 (Lawler & Boudreau, “Achieving Strategic Excellence” 2012) Percentage of Time 1995 2001 2007 2010 Spent in the RoleMaintaining Employee Records 15.4 14.9 15.8 13.6Auditing and Controlling,Ensuring Compliance 12.2 11.4 11.6 12.5Providing HR Services andImplementing Programs 31.3 31.3 27.8 30.4Developing HR Systems andPractices 18.6 19.3 19.2 16.7Strategic Business Partner 21.9 23.2 25.6 26.8 © 2012 University of Southern California
  6. Time Spent Matters! (Lawler & Boudreau, “Effective HR Management” 2012) Correlation with Correlation with Correlation Reported HR Role in with HR Organization Strategy Effectiveness PerformanceMaintaining Records Collect, track, and maintain data on -.18* -.42*** -.12 employeesAuditing/Controlling Ensure compliance to internal operations, regulations, and legal and union -.17* -0.30*** -.13 requirementsHuman Resources Service Provider Assist with implementation and -.18* -0.24** -.23* administration of HR practicesDevelopment of HR Systems and Practices .05 .12 .16 Develop new HR systems and practicesStrategic Business Partner Member of the management team. Involved with strategic HR planning, .31*** .54*** .27** organizational design, and strategic change © 2012 University of Southern California
  7. Finance Spends Less Time on Strategic Partnership(Boudreau, CFO Magazine online, 2012) CFO’s HR 400 in 2012 100 in 2010 Maintaining Records Collect, track, and maintain data 24.9 13.6 Auditing/Controlling Ensure compliance to internal operations, 16.2 12.5 regulations, and legal requirements Human Resources Service Provider Assist with implementation and 34.1 30.4 administration of practices Development of HR Systems and Practices 12.5 16.7 Develop new systems and practices Strategic Business Partner Member of the management team. Involved with strategic HR planning, 12.3 26.8 organizational design, and strategic change © 2012 University of Southern California
  8. Why Might Finance Spend Less Time?• Finance is actually a less frequent strategic partner• Finance since 2008 is under such pressure to report and audit that it has dropped its time on strategic partnership• Finance achieves “strategic” influence through its other activities• Finance “counts” differently when you ask about strategic partnership © 2012 University of Southern California
  9. • Shared Services Have Increased and Relate Positively to HR’s Role in Strategy and to Organizational Performance• Varying HR Practices Across Business Units has Decreased, and Relates Negatively to HR’s Role in Strategy• Shifting Transactional HR to Self-Service Has Slightly Increased and Relates Positively to HR’s Role in Strategy• HR Talent Rotation (from and to other functions and within HR) is Not Common Yet Relates Strongly to HR’s Strategic Role and to Organization Performance• HR Activity Areas Continue at Stable Levels, but Increases Relate to HR’s Strategic Role and Organization Performance in all Areas Except HRIS, Metrics and Union Relations• HR Skills in Technical Areas, Interpersonal, Business Partner and Metrics Rated Higher by Non-HR and HR Leaders, and Relate to HR’s Strategic Role and Organizational Performance © 2012 University of Southern California JB_W (9)
  10. • HR Is Less A Full Partner and More An Implementer Over Time• Less than 1/3 Report Full Partnership• Non-HR Sees Less Implementer and More Implementer and Full Partner Over Time• Non-HR and HR Perceptions Are Similar• China Sees No Role or Implementer Role More Than Developed Regions• HR Involved in Organization Diagnosis and Change Rather Than Strategic Direction (Mergers, New Business, Options and Choices)• HR Strategy Activity Relates More to HR’s Strategic Role and Not Strongly with Organizational Performance• China Rated Lower on All Strategy Activities than Developed Nations © 2012 University of Southern California JB_W (10)
  11. • Advanced Strategy Activities Include • There is a human capital strategy that is integrated with business strategy • Provides HR data to support change management • (HR) Drives change management • Data-based talent strategy • Provides analytic support for business decision-making • Makes rigorous data based decisions about human capital management• All are at Only a Moderate Levels, and Even Lower for Data, Analytics, and Decision Rigor• All Relate to Both HR Strategic Role and Organizational Performance• China Rates Lower Than Many Industrialized Regions• Your Organization Matters : Bureaucratic and Low-Cost Operation Negatively Related to Advanced Strategy … but High-Involvement, Global Competitor and Sustainable are all Positively Related © 2012 University of Southern California JB_W (11)
  12. • Decision Science Sophistication Relates Significantly to HR’s Strategic Role and Organizational Performance• Non-HR Leaders Believe They are Somewhat Better at Human Capital Decisions than HR Believes They are• All Decision Science Items are at Only Moderate Levels, with “Educating Business Leaders” Particularly Low-Rated• Business Leaders Who Report Greater Sophistication Also Report a Strong HR Strategic Role © 2012 University of Southern California JB_W (12)
  13. Style of Organizational Engagement Decisions HR systems that Services achieve goals by HR implements “teaching” participants Control changes by and providing the tools “encouraging” to improve decisions HR systems that achieve goals by Talentship“requiring” participants Human to do what they must Resources do Personnel © 2012 University of Southern California
  14. • All Three Rated at Moderate Levels• Non-HR Leaders Rate Decision Science Somewhat Higher Than HR• Non-HR Leaders Rate “Adding Value Through Compliance” Significantly Higher than HR• All Three Relate Strongly to HR’s Strategic Role and to Organizational Performance• Your Organization Matters : Bureaucratic and Low-Cost Operation Negatively Related to Advanced Decision Science … but High- Involvement and Sustainable are Positively Related © 2012 University of Southern California JB_W (14)
  15. • System Integration and Automation Increase Over Time• Integration and Automation Show Slight Positive Relationship to HR’s Role in Strategy and Organization Performance• China Significantly More Likely to Report “No Information Technology” than Industrialized Regions• Functional HRIS Outcomes (Efficiency, Cost/Headcount-Reduction, Employee Satisfaction, Speed) Are More Extensive … But Not Often Related to HR’s Strategic Role and Organization Performance• Strategic HRIS Outcomes (Improving Decisions, Creating Social/Knowledge Networks, Strategic Information, Measure HR Impact) Are Less Extensive … But Often Related to HR’s Strategic Role and Organization Performance © 2012 University of Southern California JB_W (15)
  16. Three Anchors in Decision Analysis Anchor Points Impact Effectiveness Efficiency © 2012 University of Southern California
  17. • Most Commonly Efficiency, Rather Than Effectiveness or Impact• Slow Increases in Effectiveness and Impact But Still Relatively Rare• Particularly Rare on Tracking Leader Decision Quality and Pivotal Role Differences• Measuring Efficiency and Effectiveness Relate to HR’s Strategic Role,• But Only Measuring Effectiveness and Impact Relates to Organization Performance• Measuring the HR Function, HR Operations and Strategy Contributions All Relate to HR’s Strategic Role• But Only Measuring HR Strategy Contributions Relates to Organization Performance © 2012 University of Southern California JB_W (17)
  18. Why are you searching under the streetlight? Because that’s where the light is.Beyond Data: The “LAMP” of evidence-based change What’s in the evidence? (Information, Design, Statistics) “The Right Analytics” What is the Talent- Strategy Connection? HR Metrics and What are the Numbers?(Competitive Advantage, (Timely, Reliable, Analytics That Motivate Pivot Points) Available) Strategic Change “The Right Logic” “The Right Measures” What’s the Persuasive Story? (Values, Culture, Influence) “The Right Process” © 2011 John W. Boudreau. All rights reserved
  19. • All LAMP Elements Rated Less Than “Somewhat Effective”• Yet All Relate to Both HR’s Strategic Role and Organizational Performance © 2011 John W. Boudreau. All rights reserved (19)
  20. Extending the Paradigm Decisions Improve organizational decisions Services Provide effective services Control TalentshipMaintain compliance and control Human Resources Personnel © 2011 John W. Boudreau. All rights reserved.

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