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HR – Transformatie
HR op maat van de business
Prof Dr Dirk Buyens
Where did the strategic HR thinking bring us?
“15 years of Dave Ulrich thinking”

       Crucial concepts:
             Back to the business

             Delivering added value

             Thinking in “outcome” language rather than input or
             HR Techno-language



       Conclusion: HR, simple & pure
© Vlerick Leuven Gent Management School
Ulrich in 1997: Multiple role model for HR

                                                              Long term


                                                Management              Management
                                                 of strategic         of transformation
                                               human resources           and change


              Processes                                                                   People

                                                Management
                                                    of the                Management
                                               administration of          of employees
                                               the organization



                                                              Short term
3|   © Vlerick Leuven Gent Management School | 08-06-2011 |
Definition for HR roles
     Role/Cell                                Outcome         Metaphor              Activity

 Management of                               Executing        Strategic        Aligning HR and busi-
 Strategic Human                             strategy         Partner          ness strategy: “Orga-
 Resources                                                                     nisational diagnosis”

 Management                               Building an         Administrative   Reengineering Orga-
 of Firm                                  efficient           Expert           nisation Processes:
 Infrastructure                           infrastructure                       “Shared Services”

 Management                               Increasing em-    Employee           Listening and responding
 of Employee                              ployee commitment Champion           to Employees: “Providing
 Contribution                             and capability                       resources to employees

 Management      Creating a                                   Change           Managing transformation
 of Transforma-  renewed                                      Agent            and change: “Ensuring
 tion and Change organisation                                                  capacity for change”
4|   © Vlerick Leuven Gent Management School | 08-06-2011 |
Shared responsibility for HR-roles

                                                                              Long term
                                                                                                  Outside consultants

                                                 Linemanagement


                                                                                           Linemanagement


                                                                    HRM
                                                                                    HRM

                     Processes                                                                                          People
                                                                                   HRM
                                                                        HRM



                                                                                         linemanagement
                                                              Outsourcing

                                                                                                          Employees
                                              Technology


                                                                              Short term


5|   © Vlerick Leuven Gent Management School | 08-06-2011 |
Ulrich 15 years later: Common pitfalls (derailers
     to watch out for)

     1. Action before rationale

     2. HR in isolation

     3. HR in increments

     4. HR by individual fiat

     5. Placing HR structure before business strategy

     6. Efficiency equals transformation
                                                              Dave Ulrich, HR Transformation, 2009

6|   © Vlerick Leuven Gent Management School | 08-06-2011 |
Model for HR Transformation

                                                                 1
                                                              BUSINESS
                                                              CONTEXT
                                                               (why)


                           4
                          HR-                                                        2
                       ACCOUNT-                                                 OUTCOMES
                        ABILITY                                                   (what)
                         (who)


                                                                   3
                                                                  HR
                                                              REDESIGN
                                                                (how)
                                                                         Dave Ulrich, HR Transformation, 2009
7|   © Vlerick Leuven Gent Management School | 08-06-2011 |
Road map for enhancing HR practices

                                                                             PROCESS:
                                   ENHANCING                  Ways to improve or reengineer HR practices

                                  HR PRACTICES
                                                                ALIGN         INTEGRATE         INNOVATE
               Categories of HR practices




                                            PEOPLE
                      CONTENT:




                                            PERFORMANCE


                                            COMMUNICATION


                                            WORK

                                                              Dave Ulrich, HR Transformation, 2009
8|   © Vlerick Leuven Gent Management School | 08-06-2011 |
Dave Ulrich, HR Transformation, 2009

     Evolution of HR roles
LATE 1990s                          LATE 2000s                EVOLUTION OF THINKING
Employee                            Employee Advocate (EA)    Employees are increasingly critical to the success of
Champion                                                      organisations. EA focuses on today’s employee

                                    Human Capital             HC developer focuses on how employees prepare for the
                                    (HC) Developer            future.

Administrative                      Functional Expert         HR practices are central to HR value. Some HR practices are
Expert                                                        delivered through administrative efficiency (such as
                                                              technology), and others through policies, menus, and
                                                              interventions, expanding the functional expert role.
Change Agent                        Strategic Partner         Being a strategic partner has multiple dimensions: business
                                                              expert, change agent, knowledge manager, and consultant.
                                                              Being a change agent represents only part of the strategic
                                                              partner role.
Strategic Partner                   Strategic Partner         The view has expanded to encompass the dimensions once
                                                              attributed to either the strategic partner or the change agent
                                                              roles.
                                    Leader                    The sum of the first four roles equals leadership, but being
                                                              an HR leader also has implications for leading the HR
                                                              function, integrating work of other functions, ensuring
9|   © Vlerick Leuven Gent Management School | 08-06-2011 |   corporate governance, and monitoring the HR community.
Building Human Resources from the outside in




10 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
                                                                Dave Ulrich, HR Transformation, 2009
Architecture for Intangibles




                                                                Dave Ulrich, HR Transformation, 2009
11 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
Defining Capabilities

                                                                Individual                 Organization


                                                       An individual’s               An organization’s core
          Technical
                                                        competence                       competencies


                                                  An individual’s                   An organization’s DNA,
               Social                              leadership or                        personality, or
                                               interpersonal ability                      capability


                                                                       Dave Ulrich, HR Transformation, 2009
12 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
Combining growth strategy, capability, and practices




                                                                Dave Ulrich, HR Transformation, 2009
13 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
Talent questions HR needs to address
              What do we mean by talent?

              What are the top things a leader should know about
              talent?

              How can leaders work with their HR professionals to
              build talent?



                                                                Dave Ulrich, HR Transformation, 2009

14 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
What do we mean by “talent”?
              CEO succession … building succession
              (The crown prince effect)
              High potential employees … identifying and developing early
              (The happy few syndrome)
              Leaders in key positions in het company … gaining support
              (The holy manager pitfall)
              All individuals within the company (workforce, human capital,
              people, employees, etc.) … increasing productivity
              (The flower power movement)
              The organization capability of building talent (culture,
              teamwork, process) … shaping a culture
              (The one size fits all paradigm)
15 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
TALENT =
                 COMPETENCE X COMMITMENT X
                                                                CONTRIBUTION


                                                                       Dave Ulrich, HR Transformation, 2009

16 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
What doe we mean by “talent”?

              Talent is a systematic process (not an event) to
              secure general and targeted individual
              competencies (what people know, do, and value)
              and organization capabilities (not just a person, the
              process) that create sustainable value for multiple
              stakeholders (employees, customers, investors)




                                                                Dave Ulrich, HR Transformation, 2009

17 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
Matching behaviour versus performance




18 |   © Vlerick Leuven Gent Management School | 08-06-2011 |   Dave Ulrich, HR Transformation, 2009
Matching behaviour (potential) versus performance




19 |   © Vlerick Leuven Gent Management School | 08-06-2011 |   Dave Ulrich, HR Transformation, 2009
Invest in talent
                                Strategy                        Definition
                                                                Acquire new talent by recruiting individuals from outside
               B                Buy                             or from other departments or divisions within the
                                                                organization.
                                                                Develop talent through training, education, formal job
               B                Build                           training, job rotation, special assignments, and action
                                                                learning.
                                                                Partner with consultants, vendors, clients, and suppliers
               B                Borrow                          outside the organization in arrangements that transfer skill
                                                                and knowledge.
               B                Boost
                                                                Move the right people through the organization and into
                                                                higher positions.

               B                                                Retain employees with high growth potential and valued
                                Bind
                                                                talent.

               B                Bounce                          Remove low-performing or under-performing individuals.
20 |   © Vlerick Leuven Gent Management School | 08-06-2011 |          Dave Ulrich, HR Transformation, 2009
Key attributes of HR
                                                                                      Dave Ulrich, HR Transformation, 2009



                                                            TALENT               CUTURE &              STRATEGY
                                                           MGR/ORG                CHANGE                ARCHI-
                                                           DESIGNER              STEWARD                 TECT

Organisation
 capabilities
                                                                       OPERA-               BUSINESS
                                                                       TIONAL
                                                                                              ALLY
                                                                      EXECUTOR


Systems & processes

                                                                                 CREDIBLE
                                                                                 ACTIVIST


                         Relationships

                                                                                 HR
                                                                            PROFESSIONALISM
21 |   © Vlerick Leuven Gent Management School | 08-06-2011 |
In the end it is better to get HR
                                                     at the board table
                                                       than on the table



22 |   © Vlerick Leuven Gent Management School | 08-06-2011 |

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Strategisch HRM: Dirk Buyens

  • 1. HR – Transformatie HR op maat van de business Prof Dr Dirk Buyens
  • 2. Where did the strategic HR thinking bring us? “15 years of Dave Ulrich thinking” Crucial concepts: Back to the business Delivering added value Thinking in “outcome” language rather than input or HR Techno-language Conclusion: HR, simple & pure © Vlerick Leuven Gent Management School
  • 3. Ulrich in 1997: Multiple role model for HR Long term Management Management of strategic of transformation human resources and change Processes People Management of the Management administration of of employees the organization Short term 3| © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 4. Definition for HR roles Role/Cell Outcome Metaphor Activity Management of Executing Strategic Aligning HR and busi- Strategic Human strategy Partner ness strategy: “Orga- Resources nisational diagnosis” Management Building an Administrative Reengineering Orga- of Firm efficient Expert nisation Processes: Infrastructure infrastructure “Shared Services” Management Increasing em- Employee Listening and responding of Employee ployee commitment Champion to Employees: “Providing Contribution and capability resources to employees Management Creating a Change Managing transformation of Transforma- renewed Agent and change: “Ensuring tion and Change organisation capacity for change” 4| © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 5. Shared responsibility for HR-roles Long term Outside consultants Linemanagement Linemanagement HRM HRM Processes People HRM HRM linemanagement Outsourcing Employees Technology Short term 5| © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 6. Ulrich 15 years later: Common pitfalls (derailers to watch out for) 1. Action before rationale 2. HR in isolation 3. HR in increments 4. HR by individual fiat 5. Placing HR structure before business strategy 6. Efficiency equals transformation Dave Ulrich, HR Transformation, 2009 6| © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 7. Model for HR Transformation 1 BUSINESS CONTEXT (why) 4 HR- 2 ACCOUNT- OUTCOMES ABILITY (what) (who) 3 HR REDESIGN (how) Dave Ulrich, HR Transformation, 2009 7| © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 8. Road map for enhancing HR practices PROCESS: ENHANCING Ways to improve or reengineer HR practices HR PRACTICES ALIGN INTEGRATE INNOVATE Categories of HR practices PEOPLE CONTENT: PERFORMANCE COMMUNICATION WORK Dave Ulrich, HR Transformation, 2009 8| © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 9. Dave Ulrich, HR Transformation, 2009 Evolution of HR roles LATE 1990s LATE 2000s EVOLUTION OF THINKING Employee Employee Advocate (EA) Employees are increasingly critical to the success of Champion organisations. EA focuses on today’s employee Human Capital HC developer focuses on how employees prepare for the (HC) Developer future. Administrative Functional Expert HR practices are central to HR value. Some HR practices are Expert delivered through administrative efficiency (such as technology), and others through policies, menus, and interventions, expanding the functional expert role. Change Agent Strategic Partner Being a strategic partner has multiple dimensions: business expert, change agent, knowledge manager, and consultant. Being a change agent represents only part of the strategic partner role. Strategic Partner Strategic Partner The view has expanded to encompass the dimensions once attributed to either the strategic partner or the change agent roles. Leader The sum of the first four roles equals leadership, but being an HR leader also has implications for leading the HR function, integrating work of other functions, ensuring 9| © Vlerick Leuven Gent Management School | 08-06-2011 | corporate governance, and monitoring the HR community.
  • 10. Building Human Resources from the outside in 10 | © Vlerick Leuven Gent Management School | 08-06-2011 | Dave Ulrich, HR Transformation, 2009
  • 11. Architecture for Intangibles Dave Ulrich, HR Transformation, 2009 11 | © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 12. Defining Capabilities Individual Organization An individual’s An organization’s core Technical competence competencies An individual’s An organization’s DNA, Social leadership or personality, or interpersonal ability capability Dave Ulrich, HR Transformation, 2009 12 | © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 13. Combining growth strategy, capability, and practices Dave Ulrich, HR Transformation, 2009 13 | © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 14. Talent questions HR needs to address What do we mean by talent? What are the top things a leader should know about talent? How can leaders work with their HR professionals to build talent? Dave Ulrich, HR Transformation, 2009 14 | © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 15. What do we mean by “talent”? CEO succession … building succession (The crown prince effect) High potential employees … identifying and developing early (The happy few syndrome) Leaders in key positions in het company … gaining support (The holy manager pitfall) All individuals within the company (workforce, human capital, people, employees, etc.) … increasing productivity (The flower power movement) The organization capability of building talent (culture, teamwork, process) … shaping a culture (The one size fits all paradigm) 15 | © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 16. TALENT = COMPETENCE X COMMITMENT X CONTRIBUTION Dave Ulrich, HR Transformation, 2009 16 | © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 17. What doe we mean by “talent”? Talent is a systematic process (not an event) to secure general and targeted individual competencies (what people know, do, and value) and organization capabilities (not just a person, the process) that create sustainable value for multiple stakeholders (employees, customers, investors) Dave Ulrich, HR Transformation, 2009 17 | © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 18. Matching behaviour versus performance 18 | © Vlerick Leuven Gent Management School | 08-06-2011 | Dave Ulrich, HR Transformation, 2009
  • 19. Matching behaviour (potential) versus performance 19 | © Vlerick Leuven Gent Management School | 08-06-2011 | Dave Ulrich, HR Transformation, 2009
  • 20. Invest in talent Strategy Definition Acquire new talent by recruiting individuals from outside B Buy or from other departments or divisions within the organization. Develop talent through training, education, formal job B Build training, job rotation, special assignments, and action learning. Partner with consultants, vendors, clients, and suppliers B Borrow outside the organization in arrangements that transfer skill and knowledge. B Boost Move the right people through the organization and into higher positions. B Retain employees with high growth potential and valued Bind talent. B Bounce Remove low-performing or under-performing individuals. 20 | © Vlerick Leuven Gent Management School | 08-06-2011 | Dave Ulrich, HR Transformation, 2009
  • 21. Key attributes of HR Dave Ulrich, HR Transformation, 2009 TALENT CUTURE & STRATEGY MGR/ORG CHANGE ARCHI- DESIGNER STEWARD TECT Organisation capabilities OPERA- BUSINESS TIONAL ALLY EXECUTOR Systems & processes CREDIBLE ACTIVIST Relationships HR PROFESSIONALISM 21 | © Vlerick Leuven Gent Management School | 08-06-2011 |
  • 22. In the end it is better to get HR at the board table than on the table 22 | © Vlerick Leuven Gent Management School | 08-06-2011 |