A crisis of credibility

Transcription

1

2 A crisis of credibility It s time to blow up HR and build something new Rethinking HR Why we love to hate HR What will it take to fix HR It s time to split HR HR faces a crisis of credibility in the boardroom HR is our favorite corporate punching bag

3 "HR today sits smack-dab in the middle of the most compelling competitive battleground in business, where companies deploy and fight over that most valuable of resources workforce talent." Matthew D. Breitfelder HBR: Why did we ever go into HR

4 This is a WAR for TALENT Steven Hankin McKinsey & Company EMPLOYED! 95.3% Unemployed 4.7% May, 2016

5 Baby Boomers 43% Millennials v 75% Contingent Work v 23m Within the next 10 years, 43% of the US workforce will be eligible for retirement. - Forbes Millennials will comprise 75% of the global workforce by Deloitte There s projected to be 23 million contingent workers by 2017 (up 26% in 2 years) MBO Partners 200% v 91% 52% Cost of replacing an employee is between % of their annual salary. SHRM 91% of Millennials expect to stay with your company fewer than three years. Future Workplace 52% of Millennials expect to work independently (82% in emerging markets). Deloitte

6 Additional Dynamics Workforce competency and skills gap Increased competition Globalization Culture Stresses on work-life balance Workplace distractions Etc.

7 ORGANIZATIONAL POWER goes to the group that deals with the biggest problems Alfred Marshall economist

8 Evolution of HR High-Impact HR HR as a strategic investment H Strategic Business Value Operational Transactional HR HR viewed as a cost center L Micro Small Mid Large

9 HR HIERARCHY OF VALUE Business Value (Culture, Performance, Engagement, Satisfaction, Employment Brand, Advising Talent Management, Succession Planning, Learning & Development ) Strategic Operations (HRIS, Records, Talent Acquisition, Compliance Tracking, Etc.) General Operations (Payroll) Basic Operations

10 Evolution of HR High-Impact HR HR as a strategic investment H Strategic Business Value Operational Transactional HR HR viewed as a cost center L Micro Small Mid Large

11 HR spends less than 15% of its time as a strategic business partner, and spends most of its time dealing with the implementation and administration of HR policies and practices. But when HR is involved, organizations function better, and are much more successful. Forbes, Edward E. Lawler III HR Should Own Organizational Effectiveness

12 Where does HR spend its time?

13 Nearly one half of respondents rated their HR department as not ready to reskill itself to meet today s business needs. Only 8% of HR leaders have confidence in their HR teams skills and abilities to meet business demands.

14 Top CEO Critical Issues HUMAN CAPITAL the last three years in a row

15 Ram Charan Best-selling Author, Business Advisor

16 Josh Bersin

17 Functional Fixedness

18 We tend to be carried forward in life by the inertia of our

19

20

21 Who helps you Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What you do What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? How you help What value do we deliver to the customer? Which one of our customer s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? How you interact What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? Who you help For whom are we creating value? Who are our most important customers? Who you are and what you have What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? How they get Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are Channels integrated? Which your ones work help best? Which ones are most cost-efficient? How are we integrating them with customer routines? What you give to provide that help What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? What you get because of that help For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

22 Who you help Business description: The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve. Can be grouped by common needs, common behaviors, or other attributes. HR Translation: The different groups of people within your company that you want to benefit from your work. These groups (Or individuals) can be defined by common needs, common behaviors, etc. Examples: Clarifying Questions: For whom are we creating value? Who are our most important customers? Who depends on you or benefits from your work? Who is your most important customer? Does the customer have a bigger picture reason or motivation for engaging you? Your boss, Executives, Managers, Employees, Candidates. You can also get more specific and focus in on a customer segment like New Employees, Veteran Employees, Full-time employees, Part-time employees, In-office employees, remote employees, International employees, Contractors, Seasonal Employees, Unions, Interns, Different Departments, Temp workers, etc. These could also be certain departments within your organization that are particularly pertinent to your company strategy. It could also be specific managers who are struggling in some way, or who face a unique challenge.

23 Suck Threshold Expected Result Actual Result Value / Quality Suck Threshold Not doing enough Doing too much Activities / Features

24 Suck Threshold Sweet Spot What Matters Most What To Say No To Value / Quality Suck Threshold Not doing enough Doing too much Activities / Features

25 Align With Strategy Which customers are in most need of our value propositions? Which could benefit the most? Which customers (and their needs) are most critical to organizational objectives? Who are my most important customers? Without them, I d go out of business.?

26 How you help Business description: The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment. It solves a customer problem or satisfies a customer need. HR Translation: What value you provide that solves your target customer s problems and needs. Examples: Clarifying Questions: What value do we deliver to the customer? What are their relevant pains? What relevant gains do they seek? What relevant activities are they trying to complete? What problems am I able to help them solve? What are their unmet needs? What jobs are they trying to get done? Strong company culture, employer brand, engaged employees, strategic outcomes and operational outcomes, everyone gets paid on time, benefits that fit culture and both attract and retain employees, operational efficiency, increased performance, increased satisfaction, alignment between company and employees, reduce onboarding costs, increased engagement, increased retention, reduce hard costs (printing, paper, courier, filing), reduce turnover costs, competitive advantage, facilitate friendships, reduce administrative and personnel costs, compliance, competitive advantage, risk management and reduction, achieving organizational excellence, enrich organization s value to customers/investors/and employees, advise on strategy execution, champion for employees, etc.

27 Focus on Value People don t want a ¾ inch drill... they want a ¾ inch hole. Ted Levitt Harvard Business School marketing professor HBR editor in chief

28 H PARTNER Eliminate the unnecessary FOCUS Market Differentiating ELIMINATE PARITY L Mission Critical H

29 The key to sustainable competitive advantage is the optimization of human capital; attracting, inspiring, and empowering great

30 How they get your help Business description: The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition. Channels are customer touch points that play an important role in the customer experience. HR Translation: Ways in which you communicate with and deliver value to your customers. Channels are customer touch points that play an important role in the customer experience. Clarifying Questions: How do my customer segments want to be reached? How am I reaching them now? Which ways of reaching them works best? Which channels are most cost-efficient? How are these channels integrated with employee routines? How will they consume the value you create? Examples: HRIS (HR portal), company web-site (recruiting), , onboarding, causes, social media, manager training, blogs (recruiting), career-fairs, Current employees (employer brand), company meetings, HR WIKI, Employee Handbook, HR Policies, Dashboards/Analytics to Business/Department heads, Posters, etc.

31 HR BUSINESS UNIT VALUE IDENTIFICATION Operational & Strategic Outcomes VALUE CHAIN VALUE CREATION Activities & initiatives VALUE DELIVERY Delivery channels & customer touch-points EXECUTIVE EMPLOYEE CANDIDATE CUSTOMER CUSTOMER CUSTOMER

32 How you interact Business description: The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments. Relationships can range from personal to automated. HR Translation: The type of relationship you want with each Customer Group. Relationships can range from personal to automated. Clarifying Questions: What type of relationship does each of my customer segments expect to have with me? What relationships have I established with each segment? How much are these relationships costing me in time and resources? How do my relationships fit in with the rest of my business model? Examples: Managers: trusted advisors, face-to-face / on demand. Employees: advocate and advisor on demand, face-to-face Employees: Information Resource self-service and on-demand by Executives: Advisor and Insight Resource meetings and reports

33 Relationship Entropy & Change Blindness

34 What you get for your help Business description: The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings) HR Translation: These are the ways you measure whether or not your customers are consuming your value, and to what extent. Clarifying Questions: What metrics would indicate that my customers are consuming the value you re delivering to them? What would indicate the degree to which they are consuming that value? What would indicate their level of satisfaction with that value? What would indicate if they re actually looking somewhere else for that value? Examples: Increased purpose alignment, Lower Absenteeism, Improve Quality of Hire, Improved Employee Brand Recognition, Increased Employee Engagement, Increased Customer Satisfaction/Experience, Decreased Time to Contribution (new hires), Increased Talent Attraction, Employee Development, Higher Retention Rates, Meeting Compliance Requirements, Improved Time to Hire, Skilled Managers, Increased Productivity, Survey Results (before and after a change), increased enps, increase in intrinsic motivation, increased employee initiative; increased influence, authority, trust, and attention.

35 Change Blindness

36 Who you are and what you have to help Business description: The Key Resources Building Block describes the most important assets required to make a business model work. Key Resources can be physical, financial, intellectual, or human. Key Resources can be owned or leased by the company or acquired from key partners. HR Translation: Key Resources you must have in order to make your business model work. Key Resources can be physical, financial, intellectual, or human. Key Resources can be owned or leased by the company or acquired from key partners. Clarifying Questions: What resources do I need to provide Value? What resources do I need to deliver my Value through Channels? What resources do I need to maintain my Customer Relationships? What resources do I need for my Revenue Streams? Examples: Needed Resources: Technology (e.g. HRIS, performance management solution, employee feedback systems, LMS, payroll etc.), Memberships (SHRM), Mentors, Benefit Packages, hardware, social networks, budget for activities and initiatives, time allocation for activities and initiatives, permission, etc. Assets: Soft skills, training, industry knowledge, perspective, legal awareness, etc.

37 What you do to help Business description: The Key Activities Building Block describes the most important things a company must do to make its business model work. These are the most important actions a company must take to operate successfully. HR Translation: The most important things you must do to make your business model work and operate successfully. Clarifying Questions: What activities must I do to deliver my Value through my Channels? What activities must I do to maintain my Customer Relationships? What activities must I do to maintain my Revenue Streams? Do my Value Propositions have enough supporting activities? Do I have activities that don t align to a Value Proposition? Examples: Pre-hire Culture/Aptitude/Skills/Personality Testing, Passive Candidate Recruiting, Candidate Communication, Create Referral Programs, Develop Career Growth Opportunities, Introduce People Outside of Immediate Teams, Compensation Planning, Hiring, Performance Reviews (Management), Social Media Recruiting, Professional Development, Succession Planning, Targeted Job Descriptions, Onboarding, Reward and Recognition Programs, Payroll, Benefits Administration, Training, Discipline Management, Administrative Budget Planning, Salary Negotiations, Pension Matters, Leave Issue, Medicals, Health and Safety Management, Create policies, Gather workplace feedback, Visit all office locations, Design Employee interventions, manage terminations, mail tax forms to employees, company taxes and paperwork, candidate interviews, Reporting, Event planning, etc.

38

39 Signal to Noise Ratio

40 Who you get help from Business description: The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work. Companies create alliances to optimize their business models, reduce risk, or acquire resources. HR Translation: Alliances (internal and external) that optimize your business model, reduce risk, help you acquire resources, and help you deliver value to your customers. Examples: Clarifying Questions: Who do I rely on to deliver value to my customers? What vendors, subscriptions (SHRM?), and suppliers do I work with? What Key Resources come from my partners? What Key Activities are/can be performed by partners? Could a key partner take on a key activity to free my time, reduce cost, or increase value/quality? Could you modify or create an altogether new Value Proposition by allying with a new Key Partner? Networking sources (Universities and Colleges, Job Fairs, career counselors, leaders, active members of organizations, military outplacement personnel, etc), Building Owners and managers. And within your organization: executives, managers, your CFO, etc. Software vendors (or vendors of other services you use to deliver value to your customers).

41 Customers Can Also Be Partners How can I partner with Managers to deliver higher value to my employee customer? By partnering with managers, can I gain access to new value delivery channels to deliver value to employee customers?

42 We tend to use busyness as a proxy for progress Effort Dilution Reduced Organizational Perception Drag

43 Stories are the mortar by which reality is built, and life s true architects are those who tell the strongest

44 What you give to provide that help Business description: The Cost Structure describes all costs incurred to operate a business model. This building block describes the most important costs incurred while operating under a particular business model. HR Translation: What costs do I incur to deliver my value, or what must I give up to create value for my customers? Examples: Clarifying Questions: What costs are absolutely necessary to make my business model work? Which Key Resources cost the most? Which Key Activities cost the most? What costs might be hidden from me? What opportunity costs am I paying (what am I not doing because I m doing something else)? Financial costs: Training Material, HR Staff Salaries, technology fees, subscription fees, Trainers, Storage Space for Files, Company Events, Off-sites, Company Meetings, Time-Entering Data, Learning Systems, Time to Retrieve Data, Overhead Costs for HR staff, Rent for Filing Cabinets, Recognition Programs, HR certification, etc.

45 Who helps you Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What you do What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? How you help What value do we deliver to the customer? Which one of our customer s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? How you interact What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? Who you help For whom are we creating value? Who are our most important customers? Who you are and what you have What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? How they get Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are Channels integrated? Which your ones work help best? Which ones are most cost-efficient? How are we integrating them with customer routines? What you give to provide that help What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? What you get because of that help For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

46 Innovation is a newmarket imperative, even for

47 Knowledge is how you catch up to the world. Imagination is how you push it

48 HR needs to be less optimized around processes, policies, and procedures, and more around people, productivity, and

49 ELEVATE a framework for accelerated evolution Understand your true worth and strategic value ESCAPE ELEVATE ELIMINATE the unnecessary ORGANIZE your information AUTOMATE the operational INCREASE business value INFORM the organization IMPACT business strategy shed all the dead weight to lay a foundation for insight set yourself free to do great work align activities to strategic outcomes learn to measure and report your value Think like a business, Act like a business, Win like a business.

50 Every day you wake up and choose who you re going to be that day. The person you choose most often, becomes your

51 If you don t believe in yourself, don t expect anyone else to

52 But not just your people you too! Using the right HR software allows you to automate time-consuming tasks and eliminate bottlenecks that keep you from being the strategic HR partner you were meant to be. BambooHR is designed with HR s true (strategic) potential in mind. By setting you and your people free, we believe you ll be able to create a great place to work. And if you create a great place to work, great work takes place. Learn more about BambooHR online at www.