The document discusses the competencies required of HR professionals in the 21st century. It uses Rand Water, a South African water utility, as a case study. Rand Water transformed its HR function to focus on strategic priorities like managing change, culture, performance and diversity. It implemented participative structures and a performance management system. This helped Rand Water achieve labour peace and social transformation while expanding services. However, the HR function must now focus more on measurements and separating strategic and administrative roles to address new challenges in areas like talent management and customer focus.

1. The Competencies Required by the HR Professional THE RAND WATER EXPERIENCEGeoff Verschoor

2. 21st century business organisations are facing a greater array of challenges than ever before

3. Organisational Challenges in the New MilleniumORGANISATIONAL RESPONSESFocusing on customers

4. Creating firm value

5. Building intellectual capital

6. Managing change

7. Managing diversity

8. Improving corporate governanceCHALLENGESGlobal competition

9. Continuous market change

10. Rapid technological change

11. Growing shareholder power

12. Consumer expectationsHuman Capital in CorporationsPeople form the most important component of success or failure of the corporationSuccessful organisations depend on the core competencies and capabilities of employees to:Implement corporate strategyDevelop products & servicesDeliver exceptional customer service

13. Human Capital in Corporations“An organisation’s ability to learm, and to translate that learning into action rapidly, is the ultimate competitive advantageJack Welch,, GE

14. How has the Human Resources Management Profession responded?

15. HR Management Role?‘Nestling warm and sloppy in your company, like the asp in Cleopatra’s bosom, is a department whose employees spend 80% of their time on routine administrative tasks‘I don’t mean improve HR, I mean abolish it. Deep six it … give it the old heave-ho’Tom Stewart, Fortune, January 1996

16. HR Management Role?‘HR managers have the chance to make a gargantuan impact on the business, but most of them aren’t making the change fast enough’Dick Randazzo, Chief Financial Officer, 1996‘There is an enormous lack of confidence among UK personnel people with a great deal of soul searching going on. There’s uncertainty over what personnel work should be about’Chris Brewster, The Guardian, 1995

17. HR Management Role?‘This is a great time for those interested in human resources. Human resource issues have become central to business deliberations, surfacing in boardrooms where executives plan and in conference rooms where managers act’Dave Ulrich, Delivering Results, 1998

18. HR Management Role‘Create an entirely new role and agenda for the field that focuses it not on traditional HR activities such as staffing and compensation, but on outcomes. HR should not be defined by what it does, but what it delivers — results that enrich the organization’s value to customers, investors and employees’Dave Ulrich, Harvard Business Review, 1998

19. Application of Strategic Human Resource Management

20. RAND WATERAdding Value to WaterFROM HERE …… TO HERE

21. Who is Rand Water?Established 1903Governed by own Act until 1998Financially independentSupply more than 3 million tons of water per day to 10 million people in an an area of 16 800 km2Employ 3 300 highly unionised staffFive main sites

22. Water Utilities:Becoming Relevant in the 1990sFrom bulk potable water wholesaler to water services provider (Water Services Act)Supplying those in needWater cycle: water and sanitationOrganisation in tune with its community and its needsAffirmative action and equityCustomer focusA global competitorFacing international competitionCompeting on cost & service

23. Organisational ImperativesAttract, develop, retain skillsBecome a preferred employerCreate a shared mind-setSocial transformationDiversity, equityBusiness tranformationPerformance culture, customer focusTransformational leadership & change management skillsDevelop partnerships with all stakeholders

24. Organisational ImperativesFROMTop-down directive management styleInward focused technical orientationCulture based on long service, stability, continuityWhite male dominated demographic profileSkills in line with wholesale water operatorTOParticipative style & systemsCustomer focused orientationCulture of performance & continuous improvementDemographic profile in line with communities servedNew, wider range of competencies

25. Reorganising HR in Rand WaterEmpowering line managementLine ownership of people managementRestructuring the HR functionDecentralisedBreakdown of functionalismStaff changesDe-bureaucratisingHR Vision linked to corporate strategyProject orientation

26. Human Resource StructureCorporateHRFunctionStrategic emphasis

27. Functional specialisation

28. Operational emphasis

29. Reporting directly to site line management

30. Functional reporting to Corporate HR FunctionSite HRFunctionSite HRFunctionSite HRFunctionSite HRFunctionSite HRFunction

31. HR Strategy to 2000DiversityParticipationPerformanceAA Policy/Strategy

32. Attitude Change

33. Employment Directive

34. Development Posts

35. PCP Effectiveness

36. PCP Education

37. Relationship Bldg

38. Change ManagementInvesting-in-MeCareer Counselling

39. Succession Planning

40. Management Development

41. Supervisory Development

42. Education

43. EAP

44. Hostel Review

45. LR Effectiveness

46. Customer Focus

47. Organisational Design

48. Broad Banding

49. Compensation Strategy

50. Development Strategy

51. Ladder of Learning

52. CompetenciesThree Primary VehiclesParticipation, Co-operation & Partnership (PCP) FrameworkPerformance management system — Investing-in-MeAffirmative Action (later Employment Equity) Policy & Strategy

53. Participative StructuresStakeholders’ForumSteeringCommitteeMonitoringGroupsTaskGroupsPlant LevelForumsTaskGroupsTaskGroupsWorkplaceMeetingsWorkplaceMeetingsWorkplaceMeetings

54. ManagementStructureChiefExecutiveDivisionalPolicy FormulationBargainingStructureParticipativeStructureDisputeResolutionCommitteeStakeholders’ForumSteeringCommitteeCentralBargainingForumMonitoringGroupsTaskGroupsDepartmentalWorkingGroupsWorkingGroupsPlant LevelForumsPlantTaskGroupsTaskGroupsSupervisoryWorkplaceMeetingsWorkplaceMeetingsWorkplaceMeetings

55. Consensus AchievedHousingPolicyHRDevelop-mentPolicy &StrategyRecruitment&SelectionGuidelinesContractEmploymentPolicyEssentialServicesAgreementAIDS/HIVPolicyAffirmativeActionPolicyDiscipline&GrievanceProcedurePeople’sCharter

56. Investing-in-MeDEFINE PERFORMANCEKey Result Documents

57. Clarifying job results

58. Including transformation goalsFACILITATE PERFORMANCEENCOURAGE PERFORMANCEPerformance & Development Reviews

59. Counselling and development

60. Linking reward to performanceEffective Performance Management

61. Social TransformationTransformation Action PlanTransformation Committee of BoardValues ExerciseChange Management ProgrammeEmployment Enhancement ProgrammeHIV/AIDS ProgrammeEmployment Equity Plan and Report

62. Leadership DevelopmentLadder of LearningABET, Apprenticeship, Technical skillsSupervisory DevelopmentManagement DevelopmentExecutive DevelopmentLeadership ProgrammeCorporate UniversityPartnership with GIMT/Henley, INSEADIntermediate Management Development ProgrammeAdvanced Management Development ProgrammeExecutive Development Programme

63. Changing HR RoleBUSINESS PARTNER =Strategic Partner +Administrative Expert +Employee Champion +Change Agent

64. Human Resources RoleFuture/Strategic FocusProcesses“Hard”People“Soft”Day-to-day/Operational FocusStrategicPartnerChangeAgentEmployeeChampionAdministrator

65. Definition of HR Roles

66. Competencies of the HR ProfessionalUnderstanding of the business (12%)Ability to manage change (24%)Ability to manage culture (19%)Personal credibility (29%)Human resource practices (16%)

67. Understanding the businessTicket of admission to business discussionsCritical link between Business & HR strategyBusiness understanding required at all levelsInformation, participation, awareness

68. Ability to Manage ChangeHR often abdicates OD roleRand Water’s HR Function has led change managementParticipation, Performance Management, Values, EthicsCompetence gained through experience

69. Ability to Manage CultureTraditional HR took little responsibility for cultureRand Water HR saw culture change as key goalPerformance, customer focus, diversityBut selection & development still focused on job competencies, not attitudes & values

70. Human Resource PracticesTraditional practicesStill to be mastered PLUS other competenciesBenchmarkingDoables vs deliverablesCommunicate doables rather than deliverables

71. HR Doables vs. DeliverablesDoablesStaffingTrainingCompensationBenefitsCommunicationEmployee relationsCareer developmentDeliverablesExecuting strategyBuilding an efficient infrastructureIncreasing employee commitment and capabilityCreating a renewed organisationDAVE ULRICH

72. Personal CredibilityUlrich: Credibility central to HR successHR professionals must:Live organisational valuesContribute widely, activelyDemonstrate ‘attitude’Ongoing challenge to Rand Water HRHistory of ‘what can’t be done’Line seen as transgressors of policy, valuesHR needs image as solution provider

73. Externally Recognised HR AchievementsPerformance management systemPCP and Labour relationsRecruitment and selection processHuge applicant demandLadder of learning, corporate universityEmployee self service, intranetEmployer image, progressive company awardsEEP, HIV/AIDS programme

74. Achievements: DeliverablesDespite 92% unionisation & adversarial labour past, labour peace achievedEssential services agreementThrough participation, employee commitment to strategic initiativesSignificant social transformationBusiness expansionServices to communitiesServices to local authoritiesNew business opportunities

75. New Challenges Facing Water UtilitiesLocal authorities vs water boardsLegislationPerceptionNegative perceptions of water boardsApartheid eraFat catsPublic-private partnershipsEfficiencyFinanceDecline in water salesIncreased tariff

76. Human Resource ImplicationsStronger focus on performance and productivityTalent management is keyRetentionSuccession planningDevelopmentCustomer management criticalEntrepreneurial skillsCulture changeChange management & strategic leadership still vital

77. Special Current HR ChallengesGreater switch from DOABLES to DELIVERABLESFocusing on MEASUREMENTCreating greater separation between STRATEGIC and ADMINISTRATIVE HR ManagementWinning the hearts and minds of all employees

78. HR Strategy 2001–2003HR Function Performance HR Structure Review

79. Customer Focus (HR)Organisational Performance Talent Management

80. Strategic Leadership Development

81. Compensation Strategy

82. Customer Focus (RW)

83. Change Management

84. Labour Relations StrategyConclusionThe HR profession can play the key role in the success of the 21st century corporation Rand Water has demonstrated that value-adding HR practices are major contributors to business successHowever, a new set of HR competencies must be masteredBusiness understanding, ability to manage change and culture, HR practices and personal credibilityEstablishing personal credibility may be the toughest challenge