HRINZ Conference 2003

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1 HR s Contribution to the Bottom Line Health of the Organisation HRINZ Conference 2003 Christian Dahmen

2 Your mind, like a parachute, works best when it is open. - anonymous

3 Where do I come from? Sales Procter & Gamble HR Procter & Gamble HC Andersen HC Watson Wyatt Co-Founding Green Party Germany Food for Serbia HRINZ Montessori Primary School Organised Corporation Voluntary Projects

4 Your Experience Please discuss with your neighbor in what voluntary projects you have been involved and what you see as the major bottom line difference, if at all. Just 5 min, then share some insights

5 My view: The Bottom Lines Organised Corporation Voluntary Projects Financials Customer Satisfaction Degree of shared passion Degree of belonging Degree of Loyalty Degree of Trust Fit of Individuals Values Achievement Customers

6 HR s changing Contribution Organised Increase Human Capital Index Recruiting people Best Practice/ Standardise processes Speed Training Reduce complexity Tick off Voluntary Manage Social Capital Index/Creativity Index Winning people Build sustainable relationships Reflect/Slow down Learning Organisation Increase complexity Celebrate

7 HR and the Bottom Line in the organised corporation 2002 Watson Wyatt Asia-Pacific Human Capital Index Overall Human Capital Index (78.7% value added) HR Function effectiveness (31.5% value added) Collegial, flexible, customer focused workplace (21.5% value added) Clear total rewards and accountability (17.7% value added) Recruiting and retention excellence (5.4% value added) Communications integrity (2.6% value added))

8 Bowling Alone: Robert Putnam 2002 Measures of community organisaional life Measure of Connectiveness Measures of community volunteerism Social Capital Index Measures of engagement in public affairs Applied in the Orgainsational Context! Measures of informal sociability Measures of Social Trust

9 The Rise of the Creative Class: Richard Florida 2003 Creativity Index Rank Region CI Creative Class % High Tech % Innovation No Diversity degree 1 2 San Francisco Austin Applied in the Orgainsational 3 San Diego 1015 Context! 3 Boston Seattle 1008

10 The journey to a healthy bottom line 3 chapters The next development step Voluntary/Owned Organisation focusing on Break Through performance Engaged Organisation focusing on Growth Performance Organised Corporation focusing on Financial Performance

11 BARRETT S HIERARCHY OF ORGANISATION PERFORMANCE CULTURE Society Community Organisation Transformation Best practice Characteristic values and culture Service to humanity and planet Concern with ethics, impact of current actions in distant future Focus on external connectedness, value strategic alliances Create partnerships with clients, suppliers, local community Care for whole employee: physical, mental, emotional and spiritual Focus on internal connectedness, build trust, community spirit and internal cohesion Foster employee fulfilment create higher productivity and creativity Risk taking encouraged Focus on renewal and self-knowledge Culture from control to trust, disincentives to incentives, participation, talent driven Vision and values recognised as means to internal cohesion Desire for greatness, to be the biggest, the best Competitive, seeking to improve cost effectiveness Management seen as a science Can degenerate into bureaucracy 2 Relationship Build harmonious reciprocal relationships with employees, clients, suppliers Strong on tradition and image, rules important because little trust 1 Survival Profits and access to funds key to all organisations survival Exclusive focus on profits can lead to preoccupation with bottom line; leaders prey to insecurity which manifests as excessive control, people and resources may be seen as exploitable

12 The Cynefin Centre Research* Complex Cause and effect coherent in retrospect do not repeat Pattern Management PERSPECTIVE FILTERS COMPLEX ADAPTIVE SYSTEMS Emergent Leadership Probe-Sense-Respond Knowable Cause and effect separated over time & space Analytical/Reductionist SCENARIO PLANNING SYSTEMS THINKING Oligarchic Leadership Sense-Analyse-Respond No Cause and effect relationships perceivable Stability focused intervention ENACTMENT TOOLS CRISIS MANAGEMENT Tyranny and Charisma Act-Sense-Respond Chaos Known Cause and effect relations repeatable and predictable Legitimate best practice STANDARD PROCEEDURES PROCESS RE-ENGINEERING Feudal Leadership Sense-Categorise-Respond *D.J. Snowden, 2003

13 Leadership structures in the domains* Domain of Possibilities Weak central strong distributed Domain of the Probable Strong central strong distributed Inconceivable Domain Weak Central weak distributed Domain of the Actual Strong central weak distributed *D.J. Snowden, 2003

14 Leadership Competencies & Development realities Speed high low Training Knowable Known Will be! Was! Is! Complexity Learning Non controllable Chaos/Paradoxes Complexity New Insights high Wisdom Growth

15 The Chaos Quadrant: Some Insights! Peter Senge s* parameters of complex and fast changing systems Today s problems come from yesterday s solutions The harder you push, the harder the system pushes back Behavior gets better before it gets worse The easy way out usually leads back in The cure can be worse than the disease Faster is slower Cause and effect are not often closely related in time and space Small changes can produce big results *The 5 th discipline Peter Senge,1990

16 From to.and (1) Org./Compliance Classical Training Class Room Information Management Change Methodology Problem Solving HR Organisation with firm lines HR Policy Fast impulsive individual experienced based decision making Engaged Learning environments Performance Coaching Knowledge Management Appreciative Inquiry HR Organisation with strategic core and dotted lines Strategic and dynamic Talent cluster Reflection and research Voluntary/Owned Experiential and experimental learning laboratories Life and Career Coaching Story Telling and Narrative Databases Strategic people competency web/net embedded in the business Entrepreneurial value and principle models Meditation

17 Merging softly: 4 D Discovery What gives life? APPRECIATING Destiny How to empower and adjust/improvise? SUSTAINING Appreciative Inquiry Dream What might be? ENVISIONING IMPACT Design What should ideally be? CO-CONSTRUCTING *Cooperrider and Whitney 1999

18 From to.and (2) Org/Compliance Goals Skills Assessment Models Work Life Balance Product Focus Financial Leadership Engaged Values Future and behavior driven competency models Work Life Integration Customer Focus Resonant Leadership Voluntary/Owned Life Purpose Passion and Values assessment models One Life People Focus Servant Leadership.

19 Servant/Resonant Leadership Leading from behind/within Management by excitement Levels but equal/consultative Multiple career pathways Conflicts/Creativity/Innovation Emotional/Social Intelligence Talents, self controlled Diverse/ paradox Slow/Medium Decisions High/ balanced results Lead Lead Grow Lead LEAD Lead Grow Lead

20 What color is your Organisation s Parachute? 11% 33% 56% Organised Engaged Voluntary/Owned

21 The 7 RE: The New HR Leadership Individual Results Internal Redesign Retain Review Recruit Rewin Renew Results External Key Conclusions: All 4 quadrants External focus Individual pools focus/ segmentation Organisation focus Bottom line focus Results Organisation Results

22 The 7 RE model applied to Growth Review Recruit Retain Rewin Renew Redesign Results Current status of Perform Performance Individuals successful within Growth organisations and its transition Future Growth competencies and passions Regretted losses with identified Growth competencies and passions Vision, Mission, High Performance Culture Definition Leadership Development, Knowledge Management, Learning Hard and Soft Measures scorecard

23 A mind stretched by a new idea, never returns to its original shape. - Oliver Wendell Holmes