Victory Through Organization: How HR can best create value? Logic for the session

Transcription

1 Victory Through Organization: How HR can best create value? Montreal HR conference March 2018 Dave Ulrich ww.rbl.net Logic for the session 2 0 to 10: how much value do I create? How could I create more? 1

2 Selected books 3 Logic for the session 4 0 to 10: how much value do I create? How could I create more? 1. Recognize that value is defined by receiver more than giver 2

3 HR is not about HR, but value created Value is defined by the receiver more than the giver. HR Others 5 What we do Actions/behaviors What you do Actions/behaviors What we want (values, beliefs, goals) What you want (values, beliefs, goals) Implications for HR: HR is not about HR 6 INDIVIDUAL LEADERSHIP Value is defined by the receiver more than the giver HR PRACTICE ORGANIZATION COUNTRY 3

4 Logic for the session 7 0 to 10: how much value do I create? How could I create more? 1. Recognize that value is defined by receiver more than giver 2. Serve internal and external stakeholders HR stakeholders 8 Who are the customers or stakeholders for HR? How do we create value for them? 4

5 Who are stakeholders for HR? 9 Market value Financial performance Intangibles Risk Investors/ Owners Communities/ regulators Reputational value Social responsibility Regulatory oversight Cultural awareness Customer share Target customers Customer intimacy Customers HR Stakeholders Partners/ Dealers Collaborative value Partnerships Outsourcing Employee value/ Productivity Competence Commitment Contribution Employees Line Managers Strategic value Shaping strategy Creating organization traction HR outside in: Evolution of HR 10 HR Evolution Partner: HR Strategy Serve: HR Functional Expertise Anticipate: HR Outside/In Respond: HR Administrative Utility Time 5

6 HR outside in: HR practices with Customer HR domain Staffing Training/development Performance management Examples of outside in Are we the employer of choice of employees our customers would choose? Do we involve customers/investors in designing, attending, and delivering training and development? Do our standards for effective performance match customer or investor expectations? 11 Rewards Communication Leadership Culture Do we involve our customers and/or investors in allocating rewards? Do our communication tools link employees and customers or investors? Have we created a leadership brand where leaders actions are tied to customer or investor expectations? Does our culture have the right events, patterns, and identity? HR Outside/In: investors and leadership 12 Investors: How do we value our investments? Leadership: How do leaders and leadership create value? Leadership Capital Index: How do investors realize the market value of leadership? 6

7 The Leadership Capital Phenomenon 13 CEO and investors Private equity investors HR and investors Leading investors speak out Overview: Leadership Capital Index 14 7

8 Logic for the session 15 0 to 10: how much value do I create? How could I create more? 1. Recognize that value is defined by receiver more than giver 2. Serve internal and external stakeholders 3. Appreciate and anticipate the business context Recognize environmental change 16 Which is the best cell to be in? Which is the worst cell to be in? Right Wrong Well 1 2 Poorly 3 4 Environment 8

9 Four Forces: New Context for HR 17 Terms: next practice, transformation, disruption, future of work, etc. Question: What are the contextual trends that will shape the future of work and require transformation or disruption of organizations, HR, and people? Four Forces: New Context for HR 18 STEPED Changes Social, technological, economic, political, environmental, demographic changes Stakeholder Expectations Inside (employee, manager) Outside (customer, investor) HR is not about HR HR creates value VUCA World (volatility, uncertainty, complexity, and ambiguity) Reality tv to reality politics, organizations, life Personal Affect (4 I s) Intensity, individuation, isolation, indifference 9

10 Future of Work and HR 19 Future of work (4 forces for change) STEPED: knowing business context, with focus on digital finance and digital HR VUCA/DRET: increasing pace of change Stakeholders: removing boundaries among stakeholders Individuals: finding meaning HR is not about HR (value defined by receiver more than giver) Redefine business partner from a role to an overall logic Make sure that HR creates value for multiple stakeholders inside and out of the business Logic for the session 20 0 to 10: how much value do I create? How could I create more? 1. Recognize that value is defined by receiver more than giver 2. Serve internal and external stakeholders 3. Appreciate and anticipate the business context 4. Deliver key outcomes of individual talent and organization capability 10

11 Relative impact of individual vs. organization 21 Individual (talent, competence, workforce, people) Organizational (culture, capability, workplace, process) 10 Outcomes: HR value creation: What value does HR create? 22 High Individual Ability Talent Workforce People Leaders Leadership Low Low Organization Capability Culture Workplace Process High 11

12 HR value creation: Importance of talent and teamwork What percent of the time is the leading scorer (winner of the Golden Boot) on the team that wins the World Cup? 23 Importance of talent and teamwork How many of the Best Actor/ Best Actress Director Academy Award winners in the last twenty years were also in the Best Picture for that year? 24 12

13 Talent (productivity) = HR outcome: Talent ENGAGEMENT 25 COMPETENCE (ability to do the work) COMMITMENT (willing to do the work) CONTRIBUTION (creating well being at work) Bringing people INTO, Managing THROUGH Moving OUT of the organization Enact an employee value proposition What do I get? What do I give? Well being through growth mindset Why growth mindset? How to build growth mindset Remove threats Approach values Attach to people Evolution of employee sentiment 26 4 ACTIVE AGENT Do I feel responsible for my own engagement? 3 MEANING/ PURPOSE 2 COMMITMENT/ ENGAGREMENT 1 SATISFACTION Does my boss help me find personal meaning from the work I do? Does my boss give me the skills to do my job? Do I like my boss, working conditions, teammates, etc.? 13

14 Commitment: Active engagement 27 Did I do my best to set clear goals today? Did I do my best to make progress towards my goals today? Did I do my best to find meaning today? Did I do my best to work with and learn from my boss? Did I do my best to create a positive work environment today? Did I do my best to build positive relationships today? Did I do my best to be engaged today? Did I do my best to earn my pay? Do we encourage active engagement? Reference: Marshall Goldsmith HR outcome: organization 28 Morphology (Structure) Systems (Alignment) Capability (Identity) Ecoorganization (Connect) Platform Designed around: Customer (outside in) Innovation (of all types) Agility (speed & experiment) 14

15 HR outcome: leadership 29 Dimension of leadership Question Challenge Why What How BUILD How BE Why does leadership matter to key organization stakeholders? What makes an effective individual leader and leadership capability? How can I help build leadership throughout the organization? How do I ensure that I turn what I know I should do into what I do? Build the business case for leadership Articulate the leadership brand, with both code and differentiators Create leadership brand throughout the organization Know and accomplish the 7 factors for leadership sustainability Summary of Leadership Code 1.0 and Domain Description Strategist How we position firm to win in the future Have a point-of-view about the future Think and act in a customer centric way Create strategic traction Engage the organization in developing strategy Encourage outside/in thinking with customers, investors, communities through co-creation Master complexity to create simplicity Envision and work in eco systems or networks Executor How we get things done in current state Ensure technical proficiency Build teams Follow a decision protocol Ensure accountability Make change happen Manage risk with action (avoid recklessness) Prioritize/satisfice to focus attention Align around the right capabilities or culture in system Talent Manager How we treat employees today Communicate Create aligned direction Strengthen competency Use resources to cope with demands Create a positive work environment Create emotional commitment, become meaning maker Deal with unconscious bias as a concept of diversity Human Capital Developer How we invest in tomorrow s talent Map the workforce Link firm and employee brand Help people manage their careers Find and develop next-generation talent Encourage networks and relationships Support talent to meet their goals and values, help them design their own career journey Become a multiplier by making others better Personal Proficiency How we gain personal leader characteristics Practice clear thinking Know yourself Tolerate stress Demonstrate learning agility Tend to character and integrity Take care of yourself Have personal energy and passion Navigate paradox Act with courage (face reality, take bold decisions) Be curious and orchestrate creativity 15

16 Logic for the session 0 to 10: how much value do I create? How could I create more? 1. Recognize that value is defined by receiver more than giver 2. Serve internal and external stakeholders 3. Appreciate and anticipate the business context 4. Deliver key outcomes of individual talent and organization capability 5. Use digital HR 31 Overall logic for digital (outside in) 32 How do we win in the customer, investor, community, and employee marketplaces? How does HR support the business digital agenda? How does HR build a digital HR agenda? 16

17 HR role in business digital agenda Build a business case Create general awareness of digital trends 33 Facilitate a team Form and facilitate a multi functional team Articulate business digital outcomes Help define the business outcomes of digital Audit current digital state Help perform an audit of digital state Craft digital business agenda state Help shape the agenda and action for business digital strategy Implication of Digital on HR: Evolution/Phases of HR Technology 34 4 CONNECTION/ EXPERIENCE 3 INFORMATION 2 HR INNOVATION/ EFFECTIVENESS 1 HR EFFICIENCY Build emotional connection (belonging) Create social network Share experiences through technology Share information for business impact Access structured and unstructured data Bring external information inside Use technology to upgrade practices in people (staffing, training), performance management, communication, and work Build technology platforms to efficiency manage HR processes; often through existing firms (Oracle, SAP, Workday) 17

18 Implication of Digital on HR: Evolution/Phases of HR Technology 35 4 CONNECTION/ EXPERIENCE 3 INFORMATION 2 HR INNOVATION/ EFFECTIVENESS 1 HR EFFICIENCY Build emotional connection Create social network Share experiences through technology Share information for business impact Access structured and unstructured data Bring external information inside Use technology to upgrade practices in people (staffing, training), performance management, communication, and work Build technology platforms to efficiency manage HR processes; often through existing firms (Oracle, SAP, Workday) Quick Test: Which of the following is the leading cause of mortality? 36 a. High blood pressure b.high cholesterol c. Inactivity (no exercise) d. Social Isolation e. Drinking f. Obesity g. Depression 18

19 Social Isolation / Loneliness 37 The U.S. surgeon general recently stated that loneliness is more serious a health problem than opiates. To illustrate this rising problem, the number of Americans with no friends has tripled since The U.K. has just named a Minister of Loneliness to create policies to deal with the challenge of social isolation. Technology and Isolation % of teens have access to smartphone; millennials look at their phones over times a day. From data on national surveys with over 500,000 American teenagers.. Those who spend more time on social media (Snapchat, Facebook, Instagram or smart phone) are more likely to agree with the future seems more hopeless. Those spending time in sport, homework, or socializing had fewer mental problems. Those who gave up Facebook reported feeling less depressed at the end of the week 12 th graders who are satisfied with themselves or life overall has dropped 10% in last 5 years; loneliness is up 10%. 38 Jean Twenge author of igen: Why Today s Super-Connected Kids Are Growing Up Less Rebellious, More Tolerant, Less Happy. 19

20 Belonging 39 Belonging is active, not passive (I invite someone to connect; make a bid). It requires persistent work and does not occur haphazardly (I make the choice of spending time to engage and connect). It endures over time (it is not an event, but a pattern). It is tied to shared values (I share something meaningful to me with those I belong to). It shapes well-being (belonging increases a sense of personal well being and closeness). HR value created through digital 40 How do we win in the customer, investor, community, and employee marketplaces? How does HR support the business digital agenda? How does HR build a digital HR agenda? 20

21 Logic for the session 0 to 10: how much value do I create? How could I create more? 1. Recognize that value is defined by receiver more than giver 2. Serve internal and external stakeholders 3. Appreciate and anticipate the business context 4. Deliver key outcomes of individual talent and organization capability 5. Use digital HR 6. Design the right HR department 41 HR Department 42 Run the HR function as if it is a business within a business. Overriding HR re-design principles 1. Differentiate clearly between transactional (foundational or essential) and strategic HR work. 2. Make the HR organization follow the logic and structure of the business organization. 3. Make the HR organization follow the flow of any professional service oriented organization. 4. Focus on relationships more than roles 21

22 Overview: HR Criteria and Summary Assessment Stage of HR Evolution 43 9 Criteria for HR Department 1: HR Reputation What is the reputation of the HR department? 2: HR Context/Definition of success What are the criteria (settings) that shape HR work? 3: HR strategy What is the mission or strategy of the HR department? 4: HR Design: process, roles, and structure How is the HR department organized? 5: HR and organization capability How does HR facilitate the definition and creation of the right organization for the business? 6: HR analytics How do we make better HR investments and choices? 7: HR practices How do we create HR practices? 8: HR Professionals What do HR professionals need to be, know, and do? 9: HR Work Style How does HR go about doing its work? Respond (efficiency) Serve (functional excellence) Partner (HR Strategy) Anticipate (Outside/in) HR Work Style 44 Keys to an effective relationship Share a common purpose Respect differences Govern, accept, connect Care for others Share experiences Grow together Some specific behaviors applied to HR Find that you are better together than apart, being part of a community accomplishes more than being alone. Express appreciation for what is good and right more than criticism for what is not right (20:1 positive to negative ratio in a couple; 5:1 in a team). Manage expectations 60+% of problems in marriage are not solved, but managed Managing decision rights and agree about how decisions get made. Be delighted in the other person s success; celebrate successes and embrace the other in failure; spend time together Respond to bids (87% of bids are responded to in successful relationships) Turn to each other not away; built emotional bank account Have shared meaning you strive for Learn from the past, but don t be stuck in it; focus on the future and what can be (feed forward) 22

23 Logic for the session 0 to 10: how much value do I create? How could I create more? 1. Recognize that value is defined by receiver more than giver 2. Serve internal and external stakeholders 3. Appreciate and anticipate the business context 4. Deliver key outcomes of individual talent and organization capability 5. Use digital HR 6. Design the right HR department 7. Build the right HR competencies 45 Assumptions of Competency work Integrate different concepts (values, behaviors, learning maps, etc.) 46 Focus on outcomes, not just competencies (independent and dependent variables) Avoid self report or single report (judge myself by my intent; others by my behavior) Turn competencies into expectations and build them (invest in making expectations real) 23

24 Round 7 Competency Model 47 Strategic enablers Core drivers Foundational enablers HR competencies: Key Findings 48 What are overall competencies for HR professionals? How do you get invited to the table? Which stakeholders are you representing while at the table? How do you create business value? 9 overall competency domains 3 core drivers; 3 strategic enablers; 3 foundational enablers Be a credible activist If inside (employee, line), be credible activist If outside (customer, investor), be a strategic positioner Navigate paradox (manage tension and divergent convergent cycle) How do you build an HR department? Recognize the importance of HR department Build capabilities (information, speed, culture, collaboration 24

25 Competences of HR professionals over 30 years Michigan, RBL, and many global partners over the seven rounds HR competency studies Round Round Round Round Round Round Round /7 Total respondents 10,291 4,556 3,229 9,182 10,063 20,023 31,868 Business units 1, ,395 Associate raters 8,884 3,805 2,565 5,890 8,414 17,385 27,904 HR participants 1, ,192 1,671 2,638 3,964 [1] Business [2] Human Resources tools [3] HR Information, Analysis, Operations [4] Change [5] Organization and Culture [6] Personal Business Knowledge (3.17) HR delivery (3.33) Change (3.65) Business knowledge (3.28) HR delivery (3.41) Change (3.68) Personal credibility (3.78) Business knowledge (3.27) HR delivery (3.49) Change (3.68) Culture (3.42) Personal credibility (4.03) Business knowledge (3.44) Business ally (3.50) Strategic Positioner Strategic contribution Strategic architect (3.89) (3.65) (3.68) HR delivery (3.69) HR technology (3.02) Talent manager & organization designer (3.80) Operational executor (3.53) Change and culture were combined into Culture and steward strategic contribution (3.80) (3.65) Personal credibility (4.13) Credible activist (4.19) HR Innovator & Integrator (3.90) Technology or information Proponent (3.74) Change champion (3.93) Organization Capability builder (3.97) Credible activist (4.23) 49 Strategic positioner (4.13) (4.02) Human capital curator (4.01) Total rewards steward (3.88) Technology and media integrator (3.92) Compliance manager (4.32) Analytics designer and interpreter (4.01) (4.01) Culture and change champion (4.03) Paradox navigator (3.99) Credible activist (4.33) Logic for the session 50 0 to 10: how much value do I create? How could I create more? 1. Recognize that value is defined by receiver more than giver 2. Serve internal and external stakeholders 3. Appreciate and anticipate the business context 4. Deliver key outcomes of individual talent and organization capability 5. Use digital HR 6. Design the right HR department 7. Build the right HR competencies 8. Make line managers owners 25

26 Roles for HR Outcomes 51 Line Managers as Owners Fully engaged Make final decision Accept accountability Ensure follow up HR Professionals roles Architect: create frameworks, blueprints Coach: help leaders change behavior and deliver results Design and deliver: provide HR integrated, simple solutions Facilitate: manage the process and systems for change Let s stay connected!!! 52 For more information or follow up, contact Dave Ulrich at Invite me to connect with you on LinkedIn to view my regular posts with insights and tips. 26