Emerging trends in HR value creation

Transcription

1 Emerging trends in HR value creation GMASHRM Madison, Wisconsin May 2016 Dave Ulrich Ideas About new business realities and how HR professionals add value Future What s next? Value added Who uses? Taxonomy Simplify and apply Overall Goals HR with Impact How can HR improve the work that gets done in organizations? Talk Engage in new conversations and access new information Tools Create tools (processes and systems) to create value Time Spend time on things that make a difference 2 1

2 Selected Books 3 New Context for HR 4 Setting STEPED Changes Social, technological, economic, political, environmental, demographic changes VUCA World (volatility, uncertainty, change, and ambiguity) Realty tv to realty politics, organizations, life Organization challenge Value Creation How do we make smart people better together? HR Implication Leadership success criteria Board time and interests Individual value by receiver Organization value HR value 2

3 Pre test 5 1. Perspective: What is the biggest challenge in my job today? 2. Outcomes: What are the outcomes of effective HR? (e.g., finance delivers economic insights; marketing customers; manufacturing quality products, HR??) 3. Transformation: What are the requirements for effective HR transformation? Question 1 HR outside in: Evolution of HR 6 HR Outside/In HR Evolution HR Strategy HR Functional Expertise HR Administrative Utility Time 3

4 HR outside in 7 CONTEXT: Social, technological, economic, political, environmental, demographic conditions STAKEHOLDERS: INSIDE: employees, line managers, organization OUTSIDE: customers, investors, communities HR PRACTICES HR domain Staffing Training /development Performance management Rewards Communication Leadership Culture Examples of outside in Are we the employer of choice of employees our customers would choose? Do we involve customers in designing, attending, and delivering training and development? Do our standards for effective performance match customer expectations? Do we involve our customers (suppliers or investors) in allocating rewards? Do our communication tools link employees and customers? Do we have a leadership brand connected to customer expectations? Does our culture have the right events, patterns, and identity? HR Outside in: HR Creates Value to Key Stakeholders 8 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 Key Stakeholders Partners/ Dealers Collaborative value Partnerships Outsourcing Employee value/ Productivity Competence Commitment Contribution Employees Line Managers Strategic value Shaping strategy Creating organization traction 4

5 How do HR Professionals gain external knowledge and insights? 9 1. Read positive and negative analyst reports 2. Read magazines, newspapers and articles about your company 3. Read magazines, newspapers and articles about your industry 4. Attend industry trade shows 5. Master internal market reports 6. Learn how internal market reports are generated 7. Visit customers in their buying context 8. Visit customers in their product or service utilization context 9. Study competitors in detail 10. Be personally involved in market research 11. Track financial analysis of market segments 12. Attend marketing meetings 13. Attached product development meetings 14. Attend sales meetings 15. Invite customers, analysts and shareholders to address training programs 16. Invite customers, analysts and shareholders to attend training programs 17. Invite customers, analysts and shareholders to address management meetings 18. Invite customers, analysts and shareholders to address HR meetings 19. Invite customers, analysts and shareholders to address meetings of line operators 20. Know what you don t know Reference: Wayne Brockbank Pre test Perspective: What is the biggest challenge in my job today? 2. Outcomes: What are the outcomes of effective HR? (e.g., finance delivers economic insights; marketing customers; manufacturing quality products, HR??) 3. Transformation: What are the requirements for effective HR transformation? 5

6 Staff Groups at the Table 11 Staff group Focus Information they bring Finance Marketing/sales Economic and financial performance Customer interest and patterns Financial data (EVA, EBIDTA, cash flow) Net promoter sore Customer share Market share Manufacturing Operational efficiency Productivity Quality Efficiency Human Resources?? Question 2: HR value creation: What value does HR create? 12 Individual Ability High Low Low Talent Workforce People Organization Capability Leaders Leadership Culture Workplace Process High 6

7 HR value creation: Importance of talent and teamwork 13 What percent of the time is the leading scorer (winner of the Golden Boot) on the team that wins the World Cup? 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? 14 7

8 Roles for HR 15 Line managers as Owners Fully engaged Make final decision Accept accountability Ensure follow up HR Professionals as Architects & Anthropologists Architect: puzzle solving, frameworks, blueprints Anthropologists: mystery seeking, observations, patterns Question 2: HR value creation: What value does HR create? 16 Individual Ability High Low Low Talent Workforce People Organization Capability Leaders Leadership Culture Workplace Process High 8

9 Talent (productivity) = A new talent formula ENGAGEMENT 17 COMPETENCE (ability to do the work) COMMITMENT (willing to do the work) CONTRIBUTION (creating well being at work) Right person, right place, right time, right skills Set standard Assess Invest Integrate Enact an employee value proposition What do I get? What do I give? Well being through a growth mindset why have growth mindset How do build growth mindset Remove threats Approach values Attach to people Competence Stage Questions Hints Set standards What are the skills for new Balance technical and cultural employees? Hire for the future not past Source candidates Screen candidates Secure candidate Steering candidate Managing performance Developing for future How do we source new candidates? How do we know if candidate fits? How do we create value for potential employee? How do we orient or on board new employees? How do we make sure our people perform well? How do we best invest in developing current talent? Seek referrals from top employees Use search firms Do initial and more detailed screening, including cultural fit Build an employee value proposition for top candidates? Help new employee learn norms and expectations Focus on conversation more than appraisal process Increase learning opportunities (on job, guest training, outside of work) 18 9

10 HR value creation: Capability 19 Individual Ability High Low Low Talent Workforce People Organization Capability Leaders Leadership Culture Workplace Process High What is culture? Culture is the ability to shift from an event to a pattern and ultimately to an identity 20 Event Pattern Identity Symbols Rituals Stories Physical setting Values (what we believe) Norms (our expected behaviors; unwritten rules; rituals) Ways we make decisions, manage information, treat people, handle conflict/differences Customer: What are our customer buying criteria/value proposition? Brand: What is our desired brand? Identity: what are known for? Reputation: what is our community image? 10

11 HR value creation: Capability 21 Individual Ability High Low Low Talent Workforce People Organization Capability Leaders Leadership Culture Workplace Process High Leadership Test 22 WHY WHAT HOW TO BUILD HOW TO BE 1 On a scale of 1 (low) to 10 (high) how important is leadership to our future success? Why? 2 What are the key requirements (knowledge, skills, behaviors) to be an effective leader? 3 On a scale of 1 to 10, how well do we BUILD future leaders? What could we do better? 4 On a scale of 1 to 10, how committed am I to be a better leader? How do I show it? Build business case for leadership at all levels Create a leadership brand that includes the leadership code (basics) and differentiators. Invest in building leaders throughout the organization. Ensure that individual leaders sustain their improvement 11

12 Pre test Perspective: What is the biggest challenge in my job today? 2. Outcomes: What are the outcomes of effective HR? (e.g., finance delivers economic insights; marketing customers; manufacturing quality products, HR??) 3. Transformation: What are the requirements for effective HR transformation? 4 Phases of HR Transformation 24 1 BUSINESS CONTEXT (why) 4 HR ACCOUNT- ABILITY (who) HR Value Proposition 2 OUTCOMES (what) 3 HR DESIGN (how) 12

13 HR Transformation (HR for HR) 25 HR accountability Line: owner HR: architect/ anthropologist Employee: resident Advisor: insight 1 BUSINESS CONTEXT (why) HR outside/in Context stakeholders 4 HR ACCOUNT- ABILITY (who) HR Value Proposition 2 OUTCOMES (what) HR for HR HR department/function HR practices HR competencies HR analytics/metrics 3 HR DESIGN (how) HR outcomes/mission Talent Leadership Capability HR Department 26 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 13

14 Principle 4: HR Department Relationships 27 Keys to an effective relationship Hints and observations Share a common purpose Find common purpose (strategic HR outside in) Create overall measures Respect differences Focus on strengths and express appreciation (5:1) Recognize love maps of other groups Govern, accept, connect Manage expectations (60 to 65% managed not solved) Clarify decision rights and manage conflict Care for others Delight in and celebrate others successes Build trust with predictability, dependability, reliability Share experiences Defend and turn to each other; respond to bids 80% Be emotionally vulnerable; take risks Grow together Learn together about what works and what does not Focus on the future?? HR Competencies 2016 Research team 28 Mike Ulrich, Co-Director David Kryscynski, Co-Director Dave Ulrich, Principal Wayne Brockbank, Principal Jacqueline Slade, Project Manager 14

15 HR Competencies 2016 Thanks to Twenty-Two Regional Partners 29 HR professionals: competencies 30 Strategic enablers Core drivers Foundational enablers 15

16 Key questions for HR Competence 31 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 Great Time to Be in HR 32 Perspective HR is not about HR Think outside in Connect HR to investors and customers Look beyond strategy Outcomes Talent: competence x commitment x contribution Leadership: why, what, how Culture: behavior, pattern, identity Transformation HR governance/department HR practices HR competencies HR analytics 16

17 Let s stay connected!!! 33 For more information or follow up, contact Ginger Bitter at gbitter@rbl.net or go to Invite me to connect with you on LinkedIn to view my regular posts with insights and tips. 17