Center for Effective Organizations Webinar September 23, 2014

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1 It Takes a Village: Future of HR and Other Functions Center for Effective Organizations Webinar September 23, 2014 Dr. John Boudreau Research Director, Center for Effective Organizations Professor, Marshall School of Business University of Southern California Los Angeles, CA John.boudreau@usc.edu

2 Future of HR (Boudreau-Ziskin 2011 Org. Dynamics) Hero Leadership to Collective Leadership Intellectual Property to Agile Co-Creativity Employment Value Proposition to Personal Value Proposition Sameness to Segmentation Fatigue to Sustainability Persuasion to Education

3 HR Now vs. Should Be (Scale: 1=No role; 2=Occasional role; 3=Active support role; 4=Primary input role; 5=Leader and key expert) Have arrived Emerging on the Horizon Globalization Generational Diversity Sustainability Social Media Personal Technology Role of HR Inside HR Now (Mean) Mass Customization Open Innovation Big Data Gamification Role of HR Inside HR- Should Be (Mean)

4 Globalization Globalization integrating world economies through the exchange of goods, services and capital. Organizations enter global markets through exports, contracts, strategic alliances or direct investment. Globalization can occur in any part of the value chain from R&D, the sourcing of raw materials, manufacturing, and sales. Examples of globalization include anything from Tyson Foods exporting protein to 130 countries to Nike setting up manufacturing plants in the Asia Pacific region. HR can address collective action and crisis-management, can create expatriate assignments, access untapped human capital, buildi global HR shared service, design global leadership and development programs, or put HR professionals on the ground in emerging economies. IBM s Corporate Service Corps places leaders in emerging markets in Africa, Asia, Eastern Europe and Latin America. Three months of the program are spent reviewing the curriculum and four weeks are on site at the selected community.

5 Generational Diversity Generational diversity refers to the presence of many different age groups among workers, citizens and consumers. The precise definition and make-up of generational categories varies, but trend-watchers point to common challenges in dealing with a wider generational span. Generational diversity can affect the entire employee lifecycle. HR services can be created and delivered to be customized or segmented by generation.

6 Big Data Big Data is data that is too big, too unstructured, or too diverse to be stored and analyzed by conventional means, processes, or tools. McKinsey's Quarterly Era of Big Data Report says, "... academic research suggests that companies that use data and business analytics to guide decision making are more productive and experience higher returns on equity."

7 Mass Customization Mass Customization means combining mass production with specific "customization" to individual consumers or consumer groups. At its most extreme, it means building each product or service to a specific customer order, while still maintaining large-scale production and delivery. Customizing the employee value proposition challenges traditional HR icons such as full-time employment, linear career progression, and "fairness as equal treatment" in total rewards and compensation. Boudreau and Ziskin observed the shift from a general employment value proposition to a personal value proposition, and from "sameness" to "segmentation."

8 Implications for HR Leaders (Boudreau-Ziskin 2011 Org. Dynamics) Reaching Out Infuse Talent from Outside HR Venturing Out Influence Beyond Function, Company, and Geographic Boundaries Seeking Out Find and Surface Unpopular Truths Breaking Out Lead Transformational Change and Actions

9 More Advanced HR Lets Others Lead Correlation Between Advanced HR Practices / Disciplines and "Others Take The Lead"

10 Globalization: Who Takes the Lead and Why? (Boudreau-Ziskin "Future of HR Trends 2013) Globalization Other function take lead INSIDE HR How many years since you began your professional career? How many years have you worked in HR? What percent of HR time is spent on strategic business partnering? To what extent does organization operate as a sustainable enterprise? How many employees are in HR?.301 To what extent does HR partner with other disciplines The role of HR varies to fit the needs of different units` HR educates leaders in other disciplines about their people decisions To what extent does your HR function emphasize the following issues? Social networks Diversity and Inclusion Globalization To what extent are these disciplines used in your HR function? Work motivation Culture Organization design Business Strategy Finance -.286

11 Generational Diversity: Who Takes the Lead and Why? Other function take lead INSIDE HR Please indicate how extensively HR in your organization is dealing with each of these trends: Social networks Diversity and inclusion To what extent do these statements describe your organization? Leadership is a collective capability at all organizational levels, we are not overly dependent on one or a few hero leaders HR uses data and analytics to educate business leaders about the quality of their talent decisions HR ventures out beyond the boundaries of the function and the organization (partnering with external peers, working with outside constituents, achieving professional development) HR educates leaders in other disciplines about their people decisions To what extent are the following disciplines used in the HR function in your organization? Political Science Culture Finance Marketing The relationship between the Human Resource function and the business strategy of your corporation Sustainable (agile design, focus on financial performance and sustainability) HR function performance -.224

12 Big Data: Who Takes the Lead and Why? (Boudreau-Ziskin "Future of HR Trends 2013) BIG DATA Leadership is a collective capability at all organizational levels, we are not overly dependent on one or a few hero leaders. Change and innovation occur through the agile co-creativity of many (the crowd), and include utilization of social media tools. Other function take lead INSIDE HR.222*.265* People rotate out of HR into other disciplines.242* The role of HR varies to fit the strategic needs of different units.247* HR educates leaders in other disciplines about their people decisions.261* How many years since you began your professional career? -.253* To what extent are the following disciplines used in the HR function in your organization? Political Science.258* Sociology.269* Risk Optimization and Hedging.318** Futurism and Scenario Analysis.332** Work Motivation.276* Adult Learning and Development.225* Law.296**

13 Mass Customization: Who Takes the Lead and Why? (Boudreau-Ziskin "Future of HR Trends 2013) Mass Customization Leadership as a collective resource Other function take lead INSIDE HR.241* Rapid learning and re-learning.245* Individualization of power and choice.269* Employment sustainability.246* The HR organization plays an active leadership/partnership role in driving sustainability throughout our company..232* People rotate into HR from other disciplines.312** The relationship between the Human Resource function and the business strategy of your corporation -.220* High involvement (flat structure, participative decisions, commitment to employee development and careers).216* Societal and environmental sustainability performance.245* To what extent are the following disciplines used in the HR function in your organization? Statistical Process Control.256* Culture.214*

14 Gamification: Who Takes the Lead and Why? (Boudreau-Ziskin "Future of HR Trends 2013) GAMIFICATION Other function take lead INSIDE HR How many years since you began your professional career? What is the performance of your HR Function? What percent of your career background is in HR?.285 To what extent does your HR function emphasize the following issues? Workforce segmentation Fatigue (burnout) To what extent are these disciplines used in your HR function? Operations Engineering.248 Statistical Process Control.243 Futurism and Scenario Analysis.260

15 Implications for HR Leaders (Boudreau-Ziskin 2011 Org. Dynamics) Reaching Out Infuse Talent from Outside HR Venturing Out Influence Beyond Function, Company, and Geographic Boundaries Seeking Out Find and Surface Unpopular Truths Breaking Out Lead Transformational Change and Actions