Wanda J. Freeland, SPHR S.M.A.R.T. Performance Solutions www.smartperfsolutions.com
Evolution of HR Review Roles of HR Define Strategic HR Business Acumen and Strategic HR Checklist and Action Plan Review HR Competencies (SHRM)
Evolution of HR Business Climate Changed Employment Law Technology Organizational Development Strategic? Training & Development Corporations (1990 s - Current) Tactical Transactional Industrial Relations Employee Records Bigger Business Corporations (1980 s) Business Climate Changed Restructure Reorganize Mergers Takeovers Small Business (1950 s) Staffing Payroll www.richardbatchelor.com
Transactional (Past & Present) Focus: Administrative/Service/Compliance (Individual) - Record Keeping (Payroll, benefits) - Employee Files - Earning Summaries - Safety Compliance/Inspections - Employee Handbook/P&P What % of your time is spent on Transactional Functions? % HO1
Tactical (Past & Present) Focus: Internal - Day-to-day HR programs (w/o regard to Strategic Impact) - Focus on Cost (Measures cost of programs; not impact on revenue/profits) - Incremental Change (Subtle refinements to existing programs) - Reactive actions (React to prevent/minimize negative impact of an event) What % of your time is spent on Tactical Functions? % HO1
Strategic (Present & Future) Focus: Big Picture Focus - Recruiting (Using metrics to ID applicants/improve OJT of new hires) - Compensation (Educating mgrs/providing tools to retain top talent) - Performance Focus (Programs that directly improve employee productivity)* - Business Acumen (Knowledge of company business and industry)* Def. Strategic. A course of action to achieve long-range goals, generally up to five years; reflects company s direction and purpose; influence development of Tactical Plans. HO1
Strategic (Present & Future) Focus: Big Picture Focus - Recruiting (Using metrics to ID applicants/improve OJT of new hires) - Compensation (Educating mgrs/providing tools to retain top talent) - Performance Focus (Programs that directly improve employee productivity)* - Business Acumen (Knowledge of company business and industry)* What % of your time is spent on Strategic/Other Functions? % HO1
Strategic Planning Process* Phase May be Should be 1. Formulation Vision Mission Values 2. Development SWOT External SWOT Internal LT Org. Objectives Strategies to Achieve 3. Implementation Corporate (Key Perf Indicators) Unit Functional 4. Evaluation Review Strategies Measure Performance Take corrective Actions (*SHRM Learning Systems : Module 1: Section 1-2) OUR GOAL
Leadership Roundtable What s Next for HR? (Nov. 2010) Observation Not much has changed in 20 yrs www.shrm.org/about/foundation/pages/default.aspx
Failure of HR to move beyond transactional* Ineffective, incompetent, costly; value sapping* SHRM Survey (2004) Only 7% saw HR as SBP was key trend Almost 60% organizations outsourcing some transactional functions - Payroll - Employee assistance/counseling - Staffing - Benefits administration *Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson. So what s left of Traditional HR?
What must change? Development of Strategic Business PARTNERSHIPS 21 st Century Companies/ Corporations Strategic Business Partners? Internal Consultants Business Partners Service Role Administration Corporations (1990 s - Current) Internal Consultants Business Partners
Business PARTNERS Research & Development Administration STRATEGIC Business PARTNERSHIPS Sales, Marketing & Public Relations Finance & Accounting HR Production & Manufacturing Legal Executive Level What Information Technology changed?
What s the SAME? Company Departments People Product Functions Strategy What s the DIFFERENCE? Strategic Focus/Goal What we do What we say
Strategy A Plan of Action Strategic Focus Majority of HR time/resources focused on optimizing workplace performance in order to maximize results of organization. -Robinson & Robinson
Become a master of your profession and a student of your business. Tom Kroeger
L I S Business Needs (BN) Performance Needs (PN) Work Environment Need/Solution (WN/S) L E A a student of your business. T E Capability Needs (CN) R N N Partners in Change, Inc & SMART Performance Solutions HO1
Consultant: An expert in business solutions linked to ROI of client s goals. THINK LT Goals; ST Strategies LINK To Business Goals ACT Develop Partnerships MEASURE Use Business Metrics (ROI) LEARN Business Acumen
Strategic Business Needs (SBN) L L I Business Needs (BN) Performance Needs (PN) L T I S Work Environment Needs/Solutions (WN/ S) E A H I N T K E N Capability Needs (CN) R N N K ACT MEASURE Partners in Change, Inc & SMART Performance Solutions
G = Go for the SHOULD A = Analyze the IS P = Pin down the CAUSES S = Select the right SOLUTIONS Opportunity to LISTEN, LEARN, & promote understanding & THINK, LINK, ACT, MEASURE HO1
Through Partnerships/Business Acumen HR Strategic Business Partner (Formal Responsibility) Access to other managers Access to more information at organizational level More opportunities to network throughout organization Department Strategic Business Partner (Informal Responsibility) Access to individual employees More time to build personal relationships/trust More people focused
Become a master of your profession
DIRECTOR SBP EXECUTIVE SBP s DIRECTOR SBP DIRECTOR SBP HR DIRECTOR SBP DIRECTOR SBP TRAINING SBP Employee Relations SBP Dept Mgr SBP Dept Mgr SBP Dept Mgr SBP Dept SBP Dept SBP Dept SBP
Strategic Objective: Increase annual revenue by 10% Strategy (Plan) Increase revenue by 3% Decrease operational expenses by 2% Improve customer service by 5% Improve efficiency/processes Improve employee training Improve recruiting and retention processes
Client Need/Strategy Decrease annual operational expenses by 2% We are in the process of reducing operational expenses in our service centers. Can you help us put together a communication program to help people understand why we are doing this? *Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
ID of Needs We are in the process of reducing operational expenses in our service centers (SBN). Can you help us put together a communication program to help people understand why we are doing this? (CN/S) *Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
Client Need/Strategy - Increase revenue by 3% - Improve efficiency/processes -Improve employee training -Improve recruiting and retention processes We plan to increase revenue in the next year. We must ensure our talent recruitment & retention processes are ready as we need everyone performing in an optimal manner to reach our goals. *Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
ID of Needs We plan to increase revenue in the next year. (SBN) We must ensure our talent recruitment & retention processes are ready (WN/S) as we need everyone performing in an optimal manner to reach our goals. (PN) *Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
Strategic Planning Process* Phase May be Should be 1. Formulation Vision Mission Values 2. Development SWOT External SWOT Internal LT Org. Objectives Strategies to Achieve 3. Implementation Corporate (Key Perf Indicators) Unit Functional 4. Evaluation Review Strategies Measure Performance Take corrective Actions (*SHRM Learning Systems : Module 1: Section 1-2) OUR GOAL To move from HR Business Partner to HR STRATEGIC Business Partner requires adding value at the operational level to earn status at the executive level. To get where we have never been, we have to do what we have never done
What is definition for Strategic HR? The majority of HR s time/resources are focused on optimizing workplace performance in order to maximize results of the organization. - Robinson & Robinson
What is the formula for Ask the right questions right? G = Go for the SHOULD A = Ask for the IS P = Pin down CAUSES S = Select the right SOLUTIONS
Give at least three actions that can be used to become a Strategic Business Partner External category Internal category Leadership category
Name at least two Leadership Competencies Attitude/Motivation Coaching Culture Leadership Teambuilding Values
THANK YOU FOR YOUR PARTICIPATION Wanda