The HR function: blow up or grow up?

Transcription

1 The HR function: blow up or grow up?

2 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US. This presentation is 2015 EYGM Limited. All Rights Reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or distribution of this form or any of the material herein is prohibited and is in violation of US and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party. Views expressed in this presentation are those of the speakers and do not necessarily represent the views of Ernst & Young LLP. This presentation is provided solely for the purpose of enhancing knowledge on tax matters. It does not provide tax advice to any taxpayer because it does not take into account any specific taxpayer s facts and circumstances. These slides are for educational purposes only and are not intended, and should not be relied upon, as accounting advice. Page 2

3 Speakers Katie Lawler Chief Human Resources Officer ITW Corporation Jim Thomas Vice President, Global Consulting Development Dimensions International (DDI) Marc Ugol Senior Advisor People Advisory Services Ernst & Young LLP Tom McCabe Partner People Advisory Services Ernst & Young LLP Page 3

4 Agenda Blow up HR? The call to arms What do our business leaders think of HR? Growing up HR: HR stepping up to the plate Perspectives from the frontline Page 4

5 Blow up HR? The call to arms CEOs worldwide see human capital as a top challenge, and [yet] they rank HR as only the eighth or ninth most important function. * There s a fear that HR chiefs aren t prepared to discuss issues beyond hiring, firing, payroll, benefits and the like. * HR managers focus too much on administrivia and lack vision and strategic insight. ** Few HR departments (since 1998) have felt compelled to make the case that any of their practices could drive profits. * It s time to say good-bye to the Department of Human Resources. Well, not the useful tasks it performs. But the department per se must go. *** I talk with CEOs across the globe who are disappointed in their HR people. *** * Ram Charan, Dominic Barton and Dennis Carey, "People Before Strategy: A New Role for the CHRO," Harvard Business Review, Jul-Aug 2015, Harvard Business School Publishing, ** Peter Cappelli, Why We Love to Hate HR and What HR Can Do About It, Harvard Business Review, Jul-Aug 2015, Harvard Business School Publishing, *** Ram Charan, It s Time to Split HR, Harvard Business Review, Jul-Aug 2015, Harvard Business School Publishing, Page 5

6 Business leaders perspective of HR? Highlights from DDI Global Leadership Forecast

7 Slide courtesy of DDI 7 Development Dimensions Int l, Inc., MMXIV. All rights reserved.

8 Slide courtesy of DDI Reactor Partner Anticipator 8 Development Dimensions Int l, Inc., MMXIV. All rights reserved.

9 Slide courtesy of DDI What Role Does HR Play? (HR Leader s perspective) Reactor 22% Partner 60% Anticipator 18% Develops and administrates policy Ensures compliance Source of HR expertise when asked Embedded in business Resolves talent issues Supports rollout of talent management initiatives Align talent capabilities with business strategy End-to-end talent management architecture Interpret talent trends and translate into opportunities 9 Development Dimensions Int l, Inc., MMXIV. All rights reserved.

10 Slide courtesy of DDI What Role Does HR Play? (Business Leader s perspective) Reactor 43% Partner 37% Anticipator 20% Develops and administrates policy Ensures compliance Source of HR expertise when asked Embedded in business Resolves talent issues Supports rollout of talent management initiatives Align talent capabilities with business strategy End-to-end talent management architecture Interpret talent trends and translate into opportunities 10 Development Dimensions Int l, Inc., MMXIV. All rights reserved.

11 Growing up: HR leaders stepping up to the plate HR is relevant and critical, but must learn to: Speak the language of business and finance Focus on the strategic talent agenda: Leadership development Organization design and effectiveness Build analytical capability and insight Let go of administrative tasks Adopt best practices from other functions Enable business leadership to build talent management skills Act in partnership with CEO and CFO the golden triangle Page 11

12 Perspectives from the front lines