The New Hr & Strategic Impact


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  • Genie story : HR executive & his wife from California were celebrating 10 th wedding anniversary in Hawaii. Walking along beach on Maui, spotted an unusual looking bottle that had washed up on shore. Opened it & out popped genie who said, “You know the deal—I’ll grant you 3 wishes.” Being a smart HR person & a well-trained husband, the HR person turned to his wife to ask what 3 wishes they should make. She said to husband “let’s ask for his & her Mercedes”. Husband repeated wish to genie who said “wish #1 is granted”. Wife then said to husband “let’s ask for our mortgage to be paid off”. Husband repeated wish to genie who said “wish #2 is granted”. Wife then said to husband, “I’ve loved it here in Hawaii & would love to come back, but you know how I hate to fly. Let’s ask for a bridge between California & Hawaii.” Husband repeated it to genie who said “I’m sorry but wish #3 is denied as that’s too difficult even for me.” Husband quickly then asked genie to make him a highly respected, highly valued member of his company’s Executive Team. To which the genie replied, “how many lanes would you like that bridge to have.” Message : Too many of us are waiting for a genie to make this desire come to pass, when it’s us to us to make it happen. Today we’ll talk about how to do so. Please ask questions/make comments as we go along.
  • The New Hr & Strategic Impact

    1. 1. THE NEW HUMAN RESOURCES: HAVING MORE STRATEGIC IMPACT <ul><li>Sal LoDico, Chief People Officer </li></ul><ul><li>Corporate Synergies </li></ul>
    2. 2. Outline: The New HR <ul><li>What the New HR is & what is it not </li></ul><ul><li>Evolution of HR </li></ul><ul><li>HR as a Key Contributor, including its: </li></ul><ul><ul><ul><li>▪ Key Roles ▪ Critical Competencies & Attributes </li></ul></ul></ul><ul><li>The New HR’s </li></ul><ul><ul><ul><li>▪ Barrier ▪ Must Do’s ▪ Measures of Effectiveness </li></ul></ul></ul><ul><li>Your New HR Readiness Level </li></ul>
    4. 4. HR’s MULTIPLE HATS <ul><li>Organizational Development </li></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Organizational structure </li></ul></ul><ul><ul><li>Identification & development of “rising stars” </li></ul></ul><ul><ul><li>Training programs </li></ul></ul><ul><ul><li>Succession planning </li></ul></ul><ul><ul><li>Adviser to senior management </li></ul></ul>
    5. 5. HR’s MULTIPLE HATS <ul><li>Benefits Management </li></ul><ul><ul><li>Plan design </li></ul></ul><ul><ul><li>Cost control </li></ul></ul><ul><ul><li>Day-to-day administration </li></ul></ul><ul><ul><ul><li>Example = employee questions, issues & problems </li></ul></ul></ul><ul><ul><ul><li>Example = Bill reconciliation </li></ul></ul></ul><ul><ul><li>Open enrollment </li></ul></ul>
    6. 6. HR’s MULTIPLE HATS <ul><li>Employee Relations </li></ul><ul><ul><li>Fun & fulfilling work environment </li></ul></ul><ul><ul><li>Work-life balance issues, such as: </li></ul></ul><ul><ul><ul><li>Tele-working </li></ul></ul></ul><ul><ul><ul><li>Flexible hours </li></ul></ul></ul><ul><ul><li>Fair treatment </li></ul></ul><ul><ul><ul><li>Absence of discrimination & harassment </li></ul></ul></ul><ul><ul><ul><li>Presence of dignity & respect </li></ul></ul></ul><ul><ul><li>Employee surveys & resultant action plans </li></ul></ul>
    7. 7. HR’s MULTIPLE HATS <ul><li>Performance & Compensation Management </li></ul><ul><ul><li>Job descriptions </li></ul></ul><ul><ul><li>Salary grades & ranges </li></ul></ul><ul><ul><li>Individual performance plans to support achievement of company objectives </li></ul></ul><ul><ul><li>Performance appraisals </li></ul></ul><ul><ul><li>Salary reviews </li></ul></ul><ul><ul><li>Incentive compensation plans </li></ul></ul>
    8. 8. HR’s MULTIPLE HATS <ul><li>Recruitment & Retention </li></ul><ul><ul><li>Being ”employer of choice”—or some variation </li></ul></ul><ul><ul><li>Internal job posting process </li></ul></ul><ul><ul><li>Transfers & promotions </li></ul></ul><ul><ul><li>On boarding/orientation of new employees </li></ul></ul><ul><ul><li>Employee retention </li></ul></ul>
    9. 9. HR’s MULTIPLE HATS <ul><li>HR Administration </li></ul><ul><ul><li>HR policies & processes </li></ul></ul><ul><ul><li>HR program development & management </li></ul></ul><ul><ul><li>Recordkeeping </li></ul></ul><ul><ul><li>HRIS </li></ul></ul>
    10. 10. HR’s MULTIPLE HATS <ul><li>Common threads : </li></ul><ul><ul><ul><li>Cost </li></ul></ul></ul><ul><ul><ul><li>Communications </li></ul></ul></ul><ul><ul><ul><li>Compliance </li></ul></ul></ul>
    12. 12. Changing <ul><li>From: </li></ul><ul><li>Tactical </li></ul><ul><li>HR knowledge </li></ul><ul><li>Limited metrics </li></ul><ul><li>To: </li></ul><ul><li>Strategic </li></ul><ul><li>Business knowledge </li></ul><ul><li>Metrics-oriented </li></ul>
    13. 13. Evolution of HR’s Value Proposition <ul><li>Value proposition is “good service at reasonable cost” </li></ul><ul><li>Value proposition is “excellent service at best cost” </li></ul><ul><li>Value proposition is “provides organization with a competitive advantage through its people” </li></ul>The New HR: True Business Partner HR in Transition The Old HR
    14. 14. HR as a Business Partner Model* *Source: David Ulrich, Renowned HR Expert Personal Credibility Business Knowledge HR Technology HR Delivery Strategic Contribution
    15. 15. Market Responsiveness (Speed & Flexibility) Value (Quality & Cost) Product or Service Differentiation Challenges of Customer Expectations Customers
    16. 16. Connecting the Dots between the Business & HR Business Strategy HR Strategy & Plan HR Systems HR Metrics HR Organization HR Capabilities What are our business goals? What people outcomes must be achieved? What will HR do to enable achieving of people outcomes? How will we measure progress and achievement? What is the best way for HR to deploy its resources? What capabilities does HR need to achieve our people strategy?
    17. 17. Connecting the dots involves: <ul><li>Development of consistent, aligned collection of practices, programs & policies </li></ul><ul><li>Integration of all HR strategy & systems within </li></ul><ul><li>a larger framework </li></ul><ul><li>Why? </li></ul><ul><li>To facilitate organization’s: </li></ul><ul><li>Fulfilling its Mission & Vision </li></ul><ul><li>Achieving its Strategic objectives </li></ul>
    18. 18. Business Success <ul><li>Success occurs when…. </li></ul>Business Strategy & Objectives HR Strategy & Objectives Success
    19. 19. Efforts Undertaken to Transform HR Process Improvement HR Self-Service Upgraded HRIS HR Benchmarking Reorganization//Downsizing Shared-Services Environment Six Sigma/TQM HR Outsourcing
    20. 20. “ People are our most important resource” <ul><li>Cliché or actually practiced? </li></ul>
    21. 21. What Do You Think This Most Important Resource Wants? <ul><li>Competitive pay & benefits </li></ul><ul><li>Fulfilling, empowering work environment </li></ul><ul><li>Fun environment </li></ul><ul><li>Opportunities for professional development & career advancement </li></ul><ul><li>Work-life balance </li></ul>
    23. 23. <ul><li>Business person with HR expertise </li></ul><ul><li>Innovator </li></ul><ul><li>Collaborator </li></ul><ul><li>Cultural “evangelist” </li></ul><ul><li>Change agent </li></ul><ul><li>Trusted adviser </li></ul>Key HR Leader Roles
    24. 24. Examples of Being a Key Contributor <ul><li>Organizational transformation </li></ul><ul><li>Identification of CEO’s successor & creation of Office of President </li></ul><ul><li>Search for & negotiation of purchase of new corporate headquarters </li></ul><ul><li>Lean manufacturing & gain sharing </li></ul><ul><li>VP, Finance role </li></ul>
    25. 25. Key HR Competencies & Attributes <ul><li>What do you think they are? </li></ul>
    26. 26. Key HR Competencies & Attributes <ul><li>Personal credibility & integrity </li></ul><ul><li>Business acumen (including “mini-CFO”) </li></ul><ul><li>Vision & leadership </li></ul><ul><li>Innovative & strategic thinking </li></ul><ul><li>Tactical execution skills </li></ul><ul><li>Relationship skills </li></ul><ul><li>Communications </li></ul><ul><li>Savvy about technology </li></ul><ul><li>Consultative & collaborative skills </li></ul><ul><li>HR subject matter expertise </li></ul>
    27. 27. Why a “Mini-CFO”? Biggest HR Concerns* <ul><li>% OF HR </li></ul><ul><li>ISSUE PROFESSIONALS </li></ul><ul><li>Rising cost of benefits 63% </li></ul><ul><li>Retention 62% </li></ul><ul><li>Recruiting 54% </li></ul><ul><li>*% who identified issue as being one about which they are “most concerned” according to Workforce Management survey </li></ul>
    28. 28. Why a ‘Mini-CFO”? Top Benefits Issues * <ul><li>Escalation/Control of Benefit Costs </li></ul><ul><li>Employee Communications </li></ul><ul><li>Employee Record Keeping and Administration </li></ul><ul><li>Premium Reconciliation/Claims Issues </li></ul><ul><li>Compliance : COBRA, ERISA, FMLA & HIPPA </li></ul>*According to HR Magazine
    29. 29. The New HR’s View <ul><li>Recognizes that employees do have value </li></ul>
    30. 30. The New HR’s View <ul><li>Employees are human assets that increase in value to the organization and in the marketplace </li></ul>
    31. 31. The New HR’s View <ul><li>Employees are a valuable source of sustainable competitive advantage. </li></ul>
    32. 32. Barriers to the New HR <ul><li>Short term mentality/focus on current performance </li></ul><ul><li>HR’s shortcomings in 10 critical competencies/attributes referred to earlier </li></ul><ul><li>Difficulty in quantifying many HR outcomes </li></ul><ul><li>Organizational readiness </li></ul>
    33. 33. The New HR’s “must do’s”: <ul><li>Shift focus from activity to adding value </li></ul><ul><li>Be able to demonstrate, in quantifiable terms, that it is adding value </li></ul><ul><li>Accurately anticipate (or at least recognize) & plan for changes in the business landscape </li></ul><ul><li>Manage Human Resources like a business * </li></ul><ul><li>* More to follow </li></ul>
    34. 34. The New HR’s “must do’s”: <ul><li>Create the right organizational culture * </li></ul><ul><li>Build an infrastructure </li></ul><ul><li>Have the right solution partners * </li></ul><ul><li>* More to follow </li></ul>
    35. 35. Creating the Right Organizational Culture
    36. 36. Organizational Culture: <ul><li>Definition: </li></ul><ul><li>Norms, values & beliefs </li></ul><ul><li>Way of thinking, acting & conducting business within an organization </li></ul>
    37. 37. Organizational Culture <ul><li>Is &quot;passed along&quot; to new members </li></ul><ul><li>Shapes an individual’s views of the organization </li></ul>
    38. 38. Organizational Culture <ul><li>Determines how members relate to one another </li></ul><ul><li>Constitutes a collective perspective of individuals within organization </li></ul>
    39. 39. <ul><li>Is embedded and is transmitted within organization </li></ul>Organizational Culture
    40. 40. Organizational Culture: Internally <ul><li>Shapes behavior </li></ul><ul><li>Promotes cooperation & commitment </li></ul><ul><li>Guides decision-making </li></ul><ul><li>Allows anticipation of actions of others </li></ul><ul><li>Creates sense of identity for individuals </li></ul>
    41. 41. Organizational Culture: Externally <ul><li>Influences how organization meets goals and deals with customers/clients </li></ul><ul><li>Creates perceptions of organization by those outside organization </li></ul>
    42. 42. The Health of an Organization’s Culture <ul><li>An unhealthy culture can drive the organization in the wrong direction and make it dysfunctional. </li></ul><ul><li>A healthy culture helps the organization to be successful. </li></ul>
    43. 43. Having the Right Solutions Partner: Example: Healthcare Benefits
    44. 44. Employers Need a Benefits Solutions Partner Who Can: <ul><li>Help define desired “future state” </li></ul><ul><li>Conduct in depth analysis & benchmarking studies, including claims analysis </li></ul><ul><li>Do contribution modeling </li></ul><ul><li>Provide innovative strategies & solutions related to: </li></ul><ul><ul><ul><li>Plan design </li></ul></ul></ul><ul><ul><ul><li>Cost sharing </li></ul></ul></ul><ul><ul><ul><li>Funding alternatives </li></ul></ul></ul>
    45. 45. Employers Need a Benefits Solutions Partner Who Can: <ul><li>Negotiate “best deal” </li></ul><ul><li>Assist with implementation, including extensive employee communications </li></ul><ul><li>Provide ongoing support services, including: </li></ul><ul><ul><ul><li>Ensuring regulatory compliance </li></ul></ul></ul><ul><ul><ul><li>Having contact center where HR questions & employee questions & problems get resolved fast </li></ul></ul></ul>
    46. 47. To Manage HR Like a Business, HR Officers Need to… <ul><li>Provide leadership and vision </li></ul><ul><li>Be business people, including financial skill </li></ul><ul><li>Create a compelling “people business” strategy that is fully aligned with overall business strategy </li></ul>
    47. 48. To Manage HR Like a Business, HR Officers Need to… <ul><li>Deploy HR strategy and metrics </li></ul><ul><li>Have an effective HR operating </li></ul><ul><li>model </li></ul>
    48. 49. 10 Common Measures of HR Effectiveness* *Jac Fitz-enz, Founder of Saratoga Institute 10. Healthcare costs per employee 9. Pay & benefits as % of Operating Expenses 8. Cost per hire 7. Return on investment for training 6. Turnover rate
    49. 50. 10 Common Measures of HR Effectiveness <ul><li>5. Turnover cost </li></ul><ul><li>4. Time to fill jobs </li></ul><ul><li>3. Return on human capital investment </li></ul><ul><ul><ul><ul><li>▪ Profits ÷ Cost of Pay + Benefits </li></ul></ul></ul></ul><ul><li>2. Human value added </li></ul><ul><ul><ul><ul><li>▪ Profits ÷ # of FTEs </li></ul></ul></ul></ul><ul><li>1. Whatever is most important to your boss </li></ul>
    50. 51. Metrics Reminder <ul><li>Metrics should be “SMART”: </li></ul><ul><li>S pecific </li></ul><ul><li>M easurable </li></ul><ul><li>A chievable </li></ul><ul><li>R elevant </li></ul><ul><li>T ime bound </li></ul>
    52. 53. Importance of HR Strategy to Overall Company Success
    53. 54. Importance of Successful Delivery of HR Services to Company Success
    54. 55. Importance of Employee Alignment to Organization's Business Goals
    55. 56. HR: As Perceived by Executives, Senior Managers & HR 82 54 55 5. Serve as trusted advisor and key player 88 57 51 4. Identify future leaders 90 73 62 3. Ensure individuals understand their role & contribution to organization 92 68 64 2. Help organization effectively use resources & control costs 87 71 66 1. Create employee loyalty to impact customer loyalty HR Professionals Senior Managers Executives % agree (either completely or somewhat)
    56. 57. CLOSING
    57. 58. 5 Questions HR Should Be Asking & Be Able to Answer 4. What are our business’s key challenges? 1. Where is our business going? 3. How is our business performing against these measures? 5. What are the HR strategies & initiatives to address these challenges? 2. What are our business’s measures of success?
    58. 59. How do you know if you’re part of New HR? <ul><li>1. Regularly partner with other executives </li></ul><ul><li>2. Driven by key determinants of business’s </li></ul><ul><li>success </li></ul><ul><li>3. Organization cannot imagine running the </li></ul><ul><li>business without HR </li></ul>
    59. 60. What Is Your Readiness Level for the New HR? Getting Ready What new HR? Ready
    60. 61. QUESTIONS
    61. 62. Thank You!