ILRHR552: Aligning HR Strategy with Organizational Strategy

Transcription

1 ILRHR552: Aligning HR Strategy with Organizational Strategy Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 1

2 This course includes Four self-check quizzes Two discussions Seven tools to download or use interactively One scored project in five parts One video transcript file Completing all of the coursework should take five to seven hours. What you'll learn Identify the unique value and core competencies of your organization Help steer your organization to sustainable growth by taking a strong role as a leader Develop a plan to focus HR strategy for maximum value for customers and stakeholders Align HR initiatives for best employee performance and business outcomes Course Description This course develops the skills needed to align the policies and activities of a human resources department with the strategy of the larger organization, based on the research and expertise of Christopher Collins, Ph.D. After gaining a good Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 2

3 understanding of the strengths of your organization, you will learn how HR leaders can assume a leadership role in planning for sustainable growth. You will use tools such as the balanced scorecard and the horizontal alignment chart to improve HR decision making and business outcomes. With the completion of an action plan at the end of the course, you will be ready to apply what you learn to your own organization. Christopher J. Collins School of Industrial and Labor Relations, Cornell University Christopher J. Collins is an Associate Professor of Human Resource Management and Director of CAHRS in the ILR School at Cornell University. He earned his Ph.D. in Organizational Behavior and Human Resources from the Robert H. Smith School of Business at the University of Maryland. Dr. Collins teaches, conducts research, and does consulting in the areas of strategic human resource management, the role of HR practices and leadership in driving employee engagement, and the role of HR in driving firm innovation and knowledge creation. His research has been accepted for publication in the Academy of Management Journal, Journal of Applied Psychology, Personnel Psychology, Human Resource Management Review, and Human Performance. In addition, Dr. Collins serves on the editorial boards of the Academy of Management Journal, Journal of Applied Psychology, the Journal of Management, and Personnel Psychology. Start Your Course Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 3

4 Module Introduction: Customer Value and Core Competencies Successful human resources strategy begins with HR leaders taking their place as an integral part of the leadership of a business or organization. Doing this requires an understanding of the value the organization delivers to customers, as well as an understanding of the strengths and competencies that distinguish the organization from its competitors. In this module, you will examine what customer value is and how organizations create it. You will examine why identifying an organization's core competencies is important in developing strategy. And you will look at real-life examples of customer value and core competencies. You will also have an opportunity to work with two useful analysis and strategy aids-the value chain analysis tool and the competency map-and will see how to apply them to your own company or organization. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 4

5 Watch: Value and Examples What value do your customers perceive in your products or services, and what conclusions do they reach when comparing the benefits against the costs? Professor Collins begins the course by discussing value creation and its importance when developing organizational and human resources strategy. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 5

6 Watch: Strategies that Deliver Customer Value Along with understanding the value you bring to customers, it's important to identify and embrace a strategy that will continue to deliver consistent customer value. In this video, Professor Collins outlines three different approaches that companies typically use to build strong core competencies that create products or services their customers value. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 6

7 Watch: Core Competency Examples and the Competency Map Successful organizations are built upon a strong set of core competencies, and those organizations take special care to protect and develop the various resources on which those competencies depend. Professor Collins discusses three well-known companies and their core competencies, and he introduces the competency map as a valuable tool in organizational analysis and planning. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 7

8 Tool: Competency Map Download the Tool Organizational Competency Map The organizational competency map is a tool that helps you prepare for HR strategy alignment by sketching out the value that customers see in your products or services, the capabilities your organization has that enables it to deliver those products or services, and the resources that support those capabilities. Download this tool and use it to map the customer values, capabilities, and resources of your own company or organization. The document containing this tool includes instructions for using it to understand these important aspects of your own organization. Below is an example of the map as it might be drawn if you were analyzing Amazon. This is just an example of how you draw lines or arrows to indicate the relationships among items on the map and is not meant to be a full or complete analysis of the Amazon business. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 8

9 Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 9

10 Watch: Introducing the Value Chain Analysis Tool How do the various parts and activities of your organization contribute to its core competencies? A clear understanding of this is needed to develop HR strategies that advance your organization's goals. In this video, Professor Collins introduces the value chain analysis tool and explains how defining contributory activities is the next step in developing appropriate HR programs and interventions. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 10

11 Tool: Value Chain Analysis Chart Download the Tool Value Chain Analysis Chart The value chain analysis chart helps organizations map out both the primary activities and the support activities that are critical to the organization's core competencies. It is a simple chart that focuses attention on what it is that gives your organization competitive advantage and what the primary and secondary activities or functions are that support those competencies. Once you analyze your organization in this way, you can begin to develop HR strategies that support and advance the organization's goals and competencies. To use this tool, please download and then follow the instructions provided. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 11

12 Module Wrap-up: Customer Value and Core Competencies In this module, you established a good foundation for HR policy alignment. You gained a better understanding of the importance of taking your place as a strategy leader within your organization. You studied how customer value is created and how organizational core competencies distinguish an organization from its competitors. You applied this knowledge to your own situation by analyzing customer value and core competencies associated with your organization, or an organization with which you are familiar. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 12

13 Module Introduction: Growth Strategies for Your Organization Being a successful HR leader means helping your organization identify strategies for sustainable growth and then developing staffing strategies that will enable and support that growth. This module examines how successful companies use repeatable formulas for growth, as well as how they seek new markets that are similar yet different enough to represent new opportunities. You will explore six "big ideas" for sustainable growth and see how you can use the growth adjacency wheel to sketch out ideas for the growth of your own organization. You will also begin to consider what implications organizational growth strategies may have for the formation of enabling and supportive HR strategies. As you continue to work on your course project, you will consider growth strategies for your own organization. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 13

14 Watch: Making Growth Sustainable Successful growth is difficult, but there IS a repeatable formula that successful companies follow. In this video, Professor Collins says the formula begins with identifying an organization's core competencies, and then looks for ways to exploit that competency in other settings using a proven set of actions. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 14

15 Watch: Ways to Grow around the Core of a Company Continuing the discussion about sustainable growth in an organization, Professor Collins outlines six "big ideas" for growth. He explains how these can be used to expand on the strengths found in an organization's core competencies, enabling a move into markets adjacent to ones that have already proved successful. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 15

16 Watch: Nike and Sustainable Growth One company that has achieved great success by expanding into adjacent markets is Nike. In this video, Professor Collins discusses Nike's core competencies and the growth strategies the company has used so successfully. As you watch, consider whether some of these same strategies would help your organization to grow in a sustainable way. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 16

17 Tool: Growth Adjacency Wheel Download the Tool Growth Adjacency Wheel Opportunities for business growth are often found in "adjacencies," products or services that are somewhat similar to existing products or services but represent variations in product areas, geographies, channels, etc. Now that you've seen how the growth adjacency wheel can be used to stimulate thinking about business growth, download this tool and do some brainstorming of your own. You may wish to get together with colleagues in your organization and use this as a way to spur discussion and planning. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 17

18 Module Wrap-up: Growth Strategies for Your Organization In this module, you explored organizational growth strategies. As an HR leader, you want to be sure that HR policies support the sustainable growth of your organization, so a knowledge of growth strategies is important. You considered six "big ideas" for sustainable growth and saw how the growth adjacency wheel can be useful in identifying potential areas of growth. You looked at how successful companies use repeatable formulas for growth. Continuing your work in the course project, you analyzed the growth strategies of your own organization and identified potential opportunities for your organization to grow in new products, new channels, or other "adjacencies." Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 18

19 Module Introduction: HR Strategy and Key Talent Groups We now turn our attention to strategies that provide a foundation for effective HR practices. Specifically, we look at the concept of key talent groups and how focusing HR attention on key groups within your organization is often an important element of organizational success. In this module, you will explore how to identify an organization's key talent groups. You will see interesting examples of major corporations that have used this kind of analysis to meet major growth and performance goals. In Part Three of the course project, you will chart out the key talent groups within your organization and begin identifying knowledge or skill gaps that may need to be addressed for optimal organizational performance. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 19

20 Watch: A Viewpoint on HR Strategy HR strategy must be based on the analysis of connections between organizational strategy and requirements associated with the people of the organization. In this video, Professor Collins explains how to envision a "causal map" between organizational strategy and competencies on the one hand and employee performance or training gaps on the other. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 20

21 Watch: International Growth at Hershey's How does a large American company gear up for growth when its CEO sets the goal of doubling its size within four years? In this video, Professor Collins takes a look at the Hershey Company and what steps were required to undertake major growth into three new international markets. He concludes with a summary of what HR and other leaders at Hershey's had to do in order to obtain the required talent with knowledge of the new markets. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 21

22 Watch: Identifying Key Talent Groups When aligning HR strategy with organizational strategy, an important step is identifying the groups of people within the organization who are most critical to the creation of customer value. In this video, Professor Collins outlines two primary criteria that can be used to identify the key talent groups on which HR may focus its efforts. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 22

23 Read: Key Talent Groups at FedEx Key Points A key talent group is critical to customers and may be variable in performance. In the overnight delivery business, HR may focus more on drivers than pilots. One example of a company that pays close attention to key talent groups and talent gaps is FedEx. Let's consider its overnight business delivery. The pilot role is one of a number of roles that have the potential to impact on-time delivery. There's no way to move a package overnight from one city to another if you don't have pilots. Until drones can fly packages around the world by themselves, we need pilots for on-time delivery. In an analysis focusing on key talent groups, we ask the question, How much variability would we expect to see between pilots within the FedEx system? The answer is that the difference in variability is extremely limited. All pilots must take a certain minimum amount of cockpit training. They all must achieve a certain minimum skill level and pass certification tests on an yearly basis. Pilot jobs are also extremely regulated, by the Federal Aviation Administration or by flight control. It's all closely controlled: when they can go and taxi to the runway, when they can take off, how fast they can fly, what routes they can fly, how long they can circle the airport, when they can touch down, when they can taxi over to the FedEx facility at the airport, etc. There is very little room for variability in the pilot job. Pilot behavior is not affected much by motivation. Super-motivated pilots committed to on-time delivery can't skip ahead in a line of planes at the Philadelphia Airport, for example. Because there is little room for variability in that role, it doesn't make sense for FedEx to spend lots of time trying to improve pilot performance. Instead, they may focus their attention on drivers. Drivers can have a huge impact on delivery, as well. The best drivers have deep route knowledge. If there is a traffic jam or accident, they know how to reroute themselves around it. They have had lots of experience with thinking about different ways to get packages delivered on time. Most importantly, good drivers are highly motivated. If they come across an accident, they don't shrug their shoulders and say, "Well, I tried my best." They figure out an alternate route and use their skills and experience to satisfy customers. Because there is the potential for a lot of variability in this role, FedEx is always interested in initiatives that focus on driver motivation and performance. How can drivers be encouraged to feel more committed to and engaged with the company's mission? How can drivers be kept in good physical condition so they can jog up a stairs instead of waiting for a slow elevator? What technology support systems can be put in place? What pay incentives can be implemented? How will regular performance feedback be provided? HR can look at all these considerations in order to reduce variability in driver motivation and performance. The goal is to implement the policies and programs that will ensure that all drivers have a similar level of motivation, skills, knowledge, Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 23

24 and performance. By evaluating the talent groups within an organization and being selective in where primary attention is focused, HR leaders can ensure that they are having maximum impact on the organization and its success. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 24

25 Tool: Talent Group Matrix Download the Tool Talent Group Matrix In Part Three of the course project, you filled in a table analyzing the performance variability and customer impact of employee groups within your organization. Once you have performed such analysis, it is useful to represent it graphically as you discuss strategies with your colleagues and other stakeholders. The talent group matrix makes it easy to do this. It contains four squares in a grid. The vertical scale represents performance variability, while the horizontal scale represents the degree to which the performance of employee groups is critical to the value your customers or clients perceive in your products or services. To use this tool in your own organization, place a large dot or other mark at the appropriate location for each employee group based on your analysis of that group's performance variability and impact on customer value. Label each dot with the name of that group. The result will be a simple graphic that will be useful as you plan and design HR strategies. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 25

26 Module Wrap-up: HR Strategy and Key Talent Groups In this module, you have taken a look at the concept of key talent groups. You have explored how to identify such groups and why HR interventions aimed at key talent groups offer the most potential impact on an organization's success. You have also seen examples of large corporations that have used this approach to meet major goals. Continuing your work in applying these concepts to your own situation, you have added to the course project by charting key talent groups in your organization and by identifying knowledge or skill gaps that may need to be addressed for optimal performance. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 26

27 Module Introduction: Aligning HR to Drive Organizational Results HR leaders often identify key talent groups within an organization and then devise interventions, design programs, or develop policies aimed at maximizing the contribution of those key groups to organizational performance. In this module, you will explore five key factors that influence employee performance. You will see how the balanced scorecard can be used as a tool in performance management. Professor Collins will explain how the balanced scorecard can help you to analyze the causes of performance problems within your organization and will discuss several other ways you can use the scorecard's concepts of interconnectedness to improve organizational management and articulate the value that HR contributes to your organization. You have an opportunity in this module to share your experiences involving HR interventions and to learn from the experiences of others. In the course project, you will once again apply these concepts to your own organization by proposing HR actions to address gaps in your organization and by outlining how you will ask management for support of those actions. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 27

28 Watch: Five Key Factors that Influence Employee Outcomes To develop effective HR strategies, you must have a clear understanding of various factors that can help or hinder employee performance. In this video, Professor Collins outlines five key factors that influence employee outcomes. As you watch this presentation, think about how these factors relate to your own organization and how you might use this understanding to develop effective HR practices and policies. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 28

29 Watch: Introducing the Balanced Scorecard The balanced scorecard is a performance management framework that was first popularized by Robert Kaplan and David Norton through a series of articles and books. Typically, organizations use the concepts of the balanced scorecard to help determine what data they should track and analyze to improve performance, and then they use standard office software or dedicated commercial software packages to capture and interpret that data. In this video, Professor Collins explains how the balanced scorecard can be used as a conceptual guide for understanding the connections between the people, processes, customers, and financial outcomes of an organization. As you watch this presentation, think about how selecting and analyzing certain measures relating to these organizational aspects may help you in developing HR strategy that contributes to organizational success. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 29

30 Read: Exploring the Balanced Scorecard The balanced scorecard is a conceptual framework that can guide the managers of an organization as they identify metrics that will provide a fuller and more accurate picture of performance in current market situations and the competitive environment. Use your mouse to explore the scorecard... The balanced scorecard consists of four areas: financial, customer, process, and people. HR professionals have used it to demonstrate that HR has had an impact on these outcomes. A potentially more interesting way to use the balanced scorecard is as a diagnostic tool to determine the changes HR should make and to justify those changes and explain their value, in business terms, to business partners. Explore the areas of the scorecard with your mouse, and read more about each section below. People Most companies fail to consider carefully enough the question of people. They complete only the first three areas of the scorecard: financial, customer, and process. They determine their financial goals and how they will achieve those goals. They figure out how to create value for customers. And whereas most organizations think about what processes to put in place to achieve their customer goals, they don't consider the people aspect adequately. The biggest question for HR and for most companies is, What abilities characterize the employees we will need in order to achieve both 100% execution of our processes and 100% execution of the behaviors that lead directly to customer value? Process The other way to achieve your financial goals is through processes. Processes, interestingly, affect both financial and customer outcomes. Relevant attributes include cost, quality, and time. Customer Analyze what you have to do for your customers if you are to achieve your financial goals. Are there certain customer outcomes that you have to produce to hit those growth targets in sales and revenues? As you strive to achieve your financial goals, your success will be dependent on pleasing your customers. Relevant values include product attributes, service attributes, relationship, and image and reputation. Financial Look at what the organization is trying to achieve financially. What goals do you have and how do you measure whether you've achieved those goals? Relevant values include income, growth, and possibly risk. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 30

31 Watch: Using the Balanced Scorecard The balanced scorecard isn't just a framework for diagnosing the causes of performance problems in an organization. HR leaders can use it for other purposes, as well. In this video, Professor Collins outlines three distinct ways that the principles behind the balanced scorecard can be used to help an organization and its HR leaders achieve their strategic goals. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 31

32 Module Wrap-up: Aligning HR to Drive Organizational Results In this module, you began looking very directly at the development of HR interventions, programs, and policies that will advance the goals and overall performance of your organization. You studied five key factors influencing employee performance. You saw how the balanced scorecard can be used to identify data to collect in order to monitor performance, as well as to examine cause-and-effect relationships in your organization and to articulate the value that HR contributes to your organization. Once again, you applied these course concepts by continuing work on the course project. These exercises are giving you the practice necessary to gain important leadership skills in HR policy alignment. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 32

33 Module Introduction: Balancing HR Changes Across Multiple Objectives In this module, we focus on steps you can take to help ensure that initiatives undertaken to address one problem won't cause problems in other areas. This is referred to as horizontal alignment, and it's an essential part of good HR planning. Horizontal alignment involves a careful analysis of a proposed HR intervention and the various objectives for a certain employment role to consider the expected impact of that proposed change. We'll look at a case study involving a consumer goods company. You'll have a chance to indicate how you would address a certain issue in this company as well as discuss this issue with other participants in this course. We'll give you a tool to perform horizontal alignment within your own organization, and you'll have a chance to use this tool as you work on the course project. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 33

34 Watch: The Consumer Goods Company - Cause and Effect In this video, Professor Collins describes how a consumer goods company gathered and analyzed data in order to identify connections between staff turnover and problems with customer satisfaction and the bottom line. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 34

35 Read: The Consumer Goods Company - Root Causes Key Points To fix a people problem, identify the root causes. Exit interviews and focus groups may reveal specific issues. Once you've used the balanced scorecard approach and determined that a people problem is causing a problem for your organization, you need to identify the root cause or causes. This will enable you to design an HR intervention that will eliminate the negative impact the problem is having on the larger organization. The people problem could involve a knowledge gap, a skills gap, a motivation gap, or some other issue. In the case of the consumer goods company that we've been looking at, the company conducted exit interviews and focus groups to figure out what was causing the high turnover of merchandiser staff. The first issue that emerged was that the job was physically demanding. There was a lot of lifting, bending, and repetitive physical work, putting product on the shelf. Merchandisers were also facing expectations that often felt mutually contradictory. The company wanted the merchandisers to make really attractive displays. They wanted them to do this at lots of stores. While a merchandiser was at a store, trying to make a nice display and get the right mix of products on the shelves, the company wanted the merchandiser to understand the specifics of that store so the display could be customized. In the midst of it all, the merchandisers were expected to build strong relationships with the store managers. This was a complex set of expectations that was difficult to meet. At the same time, the exit interviews and focus groups also revealed a problem with boredom. Merchandisers had to do the same stores, on the same route, day after day. They were stuck there for a long time. It got very repetitive. Another problem was that the pay did not compare well with the same role at other companies. Until recently, the pay was well above the market average. However, in recent months, other consumer goods companies had ratcheted up their pay scales to attract talent, often from this company. The final issue had to do with the supervisors. They were basically new college grads that were part of a leadership program. They were brought in straight out of college and put in charge of front-line merchandisers who had much more experience. The merchandisers were being supervised by people who had never done the role, who didn't understand the role, and who tended to give bad or contradictory feedback. By identifying the exact issues causing the high turnover, the HR department could begin to come up with a set of solutions that would address those issues and attempt to fix the problem that was impacting the larger organization. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 35

36 Activity: What Is the Best Way to Improve Employee Engagement? The consumer goods company faced an issue with high turnover of their merchandisers. The company could address the issue through various HR interventions. After reflecting on the options below, vote for the one you believe will be best, and then defend your choice on the discussion page that follows. Click each option to display or hide it. Option 1 Option 2 Option 3 Change job structure Change job structure Change job holders Group merchandisers into self-managed teams that share tasks, collectively solve problems, deepen relationships with store managers, and create more interesting work by having teammates. May require new fleet of vehicles for teams to travel together between stores. Change culture or leadership Change culture from one focusing on individual performance and self-reliance to a team-based culture. Change talent management Hire based on team orientation and ability to work with others, create training programs on team problem-solving and planning, and development programs to groom merchandisers with leadership potential for team lead roles. Change engagement activities Reduce number of stores on routes to more manageable level to increase time to complete tasks (stocking, displays, relationships with store managers, etc.). Hire more merchandisers. Change culture or leadership Reduce leadership issues by eliminating merchandiser supervisor position as part of new college grad leadership rotation program. Instead promote front-line merchandisers with leadership potential. Change talent management Continue to hire high school graduates into role based on performing physical work, training in the short term to focus on displays and stocking; increase training for those with leadership potential. Change engagement activities Change who does the job by making merchandiser role part of the new college graduate rotational program. Success as a merchandiser leads to opportunities in marketing, sales, and operations management. Change culture or leadership Managers of new merchandisers are "graduates" of the new college rotational program with interest in management. Change talent management Ramp up recruiting to find more candidates for new college graduate program, replacing current model of hiring high school grads as merchandisers. Focus on hands-on skills leading to leadership positions over a 3-4 year period of rotations. Improve merchandising training for new recruits. Redesign rotational program to reduce drop-out rate. Change engagement activities Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 36

37 Create incentive pay plan based on team performance tied to team effectiveness, create team-based performance management tool based on principles of 360-degree feedback. Increase pay and give incentives based on stocked volumes to increase retention and create leadership track. Reduce boredom by creating regular route rotation for merchandisers so they are more engaged. Provide opportunities in marketing and operations leadership. Increase pay for merchandiser role to be competitive to attract undergraduates. Loading... Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 37

38 Watch: The Consumer Goods Company - Evaluating Results When managers of the consumer goods company became concerned about staff turnover, they considered several possible intervention options. The option they chose included reducing the number of stores on each route, promoting high-performing merchandisers into supervisor roles, rotating the routes to reduce boredom, and increasing pay and incentives. (See Option 2 in "Activity: What Is the Best Way to Improve Employee Engagement?" ) Did this intervention work? Well, yes and no. In this video, Professor Collins explains how the company used a balanced scorecard approach to evaluate the results of its changes. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 38

39 Watch: Being Strategic Before launching an intervention aimed at solving a business problem, HR leaders must plan it carefully and consider a number of factors. In this video, Professor Collins outlines four important points to consider before introducing an HR initiative. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 39

40 Watch: What Is Horizontal Alignment? For effective alignment of HR strategy with organizational strategy, it's important to do another kind of alignment as well: horizontal alignment. In this video, Professor Collins explains how horizontal alignment can help ensure that an HR intervention aimed at improving the results of one objective of a certain job position will not negatively impact other objectives of that same position. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 40

41 Tool: Horizontal Alignment Chart Download the Tool Horizontal Alignment Chart The horizontal alignment chart is designed to help you analyze HR practices and their impact on the multiple objectives of a certain job position. The first page of the chart contains instructions to help you make effective use of this tool. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 41

42 Watch: Example of Horizontal Alignment On the previous Tool page, you were given the opportunity to download a file containing a blank horizontal alignment chart along with instructions about how you can use this to analyze the impact of existing or proposed HR practices and interventions. In this video, Professor Collins explains how the consumer goods company used this chart to analyze the impact of the new practices that were implemented to address high staff turnover. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 42

43 Module Wrap-up: Balancing HR Changes across Multiple Objectives Whether you're talking about house repair or human resources, fixing one problem only to cause another is not a happy solution. And yet that's what can easily happen if you don't consider whether an HR intervention aimed at one objective will have adverse effects on other objectives. In this module, you studied horizontal alignment and its importance in good HR planning. You walked with Professor Collins through a case study involving a consumer goods company and had a chance to participate in a discussion about how performance at that company could be solved most effectively. In the course project, you gained practice in the use of the horizontal alignment chart in order to identify potential unwanted consequences from possible HR interventions. The course project has given you the opportunity to apply and reinforce what you've learned, building alignment skills that will make you more effective as an HR professional. Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 43

44 Read: Thank You and Farewell Dr. Christopher J. Collins Associate Professor and Director of CAHRS School of Industrial and Labor Relations Cornell University Thank you for participating in this course! I hope you found it to be a great experience. The skills you have been developing here will enable you to play a significant role as a business leader within your organization, ensuring that your human resource activities will advance the strategic goals of your organization. We've covered important ground: We have seen how an organization identifies its core competencies and how it creates value for its customers. We have examined how organizations build on their core competencies to develop sustainable growth strategies. We have discussed the importance of identifying key talent groups within an organization and focusing HR strategy on such groups in order to support the organization and help it grow. We have used tools and conceptual frameworks to identify appropriate HR interventions aimed at addressing organizational needs. Finally, we have explored the steps needed to ensure that HR changes have the best possible positive effect across a range of objectives. So, move forward with confidence as you use these tools and skills. Best wishes as you play your part as a strategic business partner within your organization! Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 44

45 Supplemental Reading List Professor Collins has identified a number of books that may be useful if you wish to delve further into the topics covered in this course. These additional resources are available for purchase via a special page provided by the Cornell Store. (The page will open in a new window/tab, so just close the tab or window when you want to return to the course.) Copyright 2012 ecornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners. 46