Develop Your Strategic Thinking Mindset Or Else! Strengthening HR s Value by Developing Your Strategic Thinking Mindset May 2016 Helping Build and Sustain GREAT Organizations!
Jeffrey L. Russell Jeff Russell, co-director of Russell Consulting, Inc. (RCI) with his wife Linda, specializes in helping leaders build productive, supportive, and motivating work environments. RCI helps companies develop their leadership and strengthen team performance to achieve their great performance goals and outcomes. By guiding the exploration of key values held in common by organizational members and developing strategies and actions to express these values-in-action, RCI helps organizations achieve their strategic vision. Through processes that include "visioning" retreats, Future Search conferences, process redesigns, improving decision making processes, implementing quality improvement strategies, and providing a variety of skill-building seminars, RCI enhances longterm organizational effectiveness and performance. Consulting Expertise Jeff consults with companies in the areas of: Visioning and strategic planning Leadership development Leading and implementing change Performance management systems Employee engagement assessment Customer and employee focus groups Team assessment and intervention training needs assessment Organizational design Self-managed teams Problem solving and decision making Training Expertise Jeff conducts an array of leadership and team development seminars on such topics as: Surviving difficult conversations Fearless performance reviews Leadership and strategic thinking/planning Leading fearless change Communication skills Dealing with difficult people DiSC Behavioral Profiles 360 leadership assessment and development Effective meeting management Decision making and problem solving Managing conflict and win/win negotiations Performance management and coaching skills Team building fundamentals Team leadership and facilitation skills Customer service Professional Background Jeff serves as an adjunct faculty member at University of Wisconsin-Madison and UW-Milwaukee. He also teaches for the UW-Madison, UW-Eau Claire, and UW-La Crosse Small Business Development Centers. Jeff has a bachelor's in Humanism and Cultural Change and a Masters of Science degree in Industrial Relations from UW-Madison. Before forming RCI, Jeff served as human resource coordinator for the Wisconsin Department of Administration (DOA). At DOA, Jeff developed and coordinated their employee assistance, leadership and employee development, and equal employment opportunity/affirmative action programs. Conference Presenter and Author Jeff is a sought-after speaker at state, national and international conferences. Recent presentations include: ASTD International Conferences 2001 through 2011 Jamaica Employer s Federation Conference, Ocho Rios, Jamaica, 2004, 2006, 2007, and 2009 2005 Minnesota Quality Conference Minnesota Project Management Institute, PDD 2007, 2008, 2009, 2011, 2012, and 2013 Wisconsin SHRM Annual Conference, 2004 through 2007, 2010, 2011, 2012, and 2013 Wisconsin Child Welfare Annual Conference, 2012 Leading Change, Shanghai, China Emotional Intelligence in Action, Kuala Lumpur, Malaysia, 2012 Jeff and his wife Linda have co-authored nine management books including Leading Change Training, Strategic Planning Training, Change Basics, Strategic Planning 101, Ultimate Performance Management, and Fearless Performance Reviews (McGraw-Hill, 2014). Helping Create and Sustain GREAT Organizations! 1134 Winston Drive tel (608) 274-4482 Madison, Wisconsin 53711-3161 RCI Online: www.russellconsultinginc.com E-mail: Jeff@RussellConsultingInc.com
What is a Strategic Thinking Mindset for HR and Why is Developing One Important? A Strategic Thinking Mindset for HR is... Discuss in your group... the meaning of the term strategic thinking mindset. What does it mean to be a strategic thinker as an HR professional? What are the Benefits of Developing a Strategic Thinking Mindset? Why is it important for HR to develop a strategic thinking mindset? How does a strategic thinking mindset help our organizations and us as HR professionals? Benefit to Organization: Benefit to Self (role, career, development, etc.): What are the Consequences if We Don t Develop a Strategic Thinking Mindset? What are the consequences for the organization and HR in the short- and long-term if we aren t able to bring a strategic thinking mindset to the table? Cost to Organization: Cost to Self (role, career, development, etc.): 2016, www.russellconsultinginc.com 1
Strategic HR: Strategic Thinking Planning Acting Strategy Formulation Synthesis Analysis Decision Making Evaluation Implementation Plan Action Strategy Implementation 2016, www.russellconsultinginc.com 2
Strategic Thinking for HR Is... Strategic thinking for HR is a way of examining and understanding your organization s circumstances and its surrounding environment and then making informed decisions and taking appropriate actions based upon a strategic mindset. Strategic thinking is a fundamental competency that enables HR professionals to identify, understand, and proactively engage current and emerging issues that are likely to have a significant impact on an organization s success. It involves deeply examining oneself, the organization, internal and external customers, leaders and employees, and the surrounding environment in such a way that the HR thinker is able to see his or her purpose and role within a larger context. This larger context involves the HR professional having a deep understanding of: the overarching purpose or aim of the organization and the vision and goals that seek to enact that purpose the purpose, role, and value of HR s contribution toward this purpose the core values described in the strategic plan or articulated by the CEO that identify the attitudinal and behavioral expectations of every employee (including and especially HR) the current, emerging, and future needs of HR s customers (internal and external) issues and events that are occurring in the organization s environment the internal and external forces and factors that are likely to shape its future. 2016, www.russellconsultinginc.com 3
Developing a Strategic Thinking Mindset The components of the strategic thinking mindset include: 1. Holding an image of the or ideal future for the organization in one s mind. Strategic thinking begins with a clear understanding of the big picture and the desired long-range future for the organization. With this vision or idea in mind, decisions and actions are more likely to be directly and indirectly shaped by this overarching objective. 2. Drawing upon and being shaped by the organization s core. While the vision describes the end state that individuals are striving to create over time, the core values speak to the moment. When clearly defined, understood, and accepted by the HR professional, the core values directly lead to strategic decision making and actions because they speak to the current behaviors, decisions, and actions rather than future ones. 3. Being awake and aware... continuously scanning the looking for opportunities and threats. The strategic thinking mindset depends upon a keen awareness of the environment. HR professionals who are strategic thinkers always have their antennae up. They discover new possibilities by actively seeking out and being open and receptive to information and they are able to detect potential threats early-on by being conscious of emerging issues and events that may have a negative impact on the organization and/or its human resources. 4. Seeing the and relationships in events and circumstances. HR professionals as strategic thinkers connect the dots by looking for and recognizing the patterns and relationships between observed events and circumstances. A strategic thinking HR professional, for example, will be the first to detect an emerging pattern of employee disengagement in a department long before turnover becomes an issue. Because strategic thinkers are constantly on the lookout for patterns or trends in behaviors they are often the first to highlight the need for action. They become a catalyst for a conversation around the meaning of a trend for the organization and how the organization might best respond from a strategic perspective. 5. Recognizing the and interdependencies before making decisions and taking action. Strategic thinkers are deeply aware of the interdependencies and interrelationships between actions and events. They recognize that every action within a system (e.g., raising educational requirements for open positions) may or may not have its desired effect (e.g., more qualified candidates), but that there are always potential unintended consequences for an action (e.g., fewer applicants in the selection pool and otherwise qualified candidates not being considered) that will occur. This is the rule of unintended consequences much appreciated by true strategic thinkers. 6. Making decisions and taking actions in the moment that are by the vision, values, knowledge of the environment, attention to the interdependencies, and an awareness of the long-term. The final component of strategic thinking integrates the previous components into a strategic perspective that shapes how the HR professional makes decisions in the moment with the long-term vision, core values, interconnections, and deep awareness of the environment in mind. 2016, www.russellconsultinginc.com 4
The Levels of HR Thinking-Planning-Action Tools for Leadership and Learning Level Desired Result Style of Action Strategic Helping the organization achieve an ideal future. Optimizing desired long-term outcomes given internal resources and environmental constraints. Future-minded, long-term focus. Exploring alternative HR possibilities and pathways to achieve success and tackle critical issues. Underlying Value/Key Question Controlled instability toward a larger purpose. Leveraging opportunities. What s next for HR? Current % of Time Desired % of Time Interactive Exceeding expectations. Going above and beyond. Anticipating HR needs and problems. Proactive. Getting out in front of things. Never being surprised. Continuous learning and quality improvement. What am I learning today that should change my HR practice tomorrow? Operational Maintaining the status quo. Ensuring consistency. Controlling/guaranteeing results. Developing good HR systems that translate strategic plans into action. Short-term focus. Fixes problems. Maintains smooth operation. Strives for operational excellence. Stability and Control. How do I keep things going along as smoothly as possible? Tactical Meeting expectations. Solving daily HR problems. Responding immediately to emerging issues. Reactive. Short-term focus. Getting results today. Surviving! Making it through another day! What must I do right now to solve today s problems? 2016, www.russellconsultinginc.com 5
Strategic Thinking Framework Vision and Mission Strategic Priorities Governing Values Environmental Context Event Calling for a Response Tactical/Operational Response Who is the customer in this situation? What is the pressing problem we re trying to solve or opportunity we re trying to leverage? What do we need to do right now to address this issue? What immediate actions will help us solve the problem or enable us to realize the opportunity? What is our immediate desired outcome in this situation? What is our immediate measure of success? How will we know if our actions have been successful? Who is primarily responsible and accountable for taking immediate action on this issue? How does the vision, strategic priorities, and governing values inform our immediate, tactical, and operational response? How might we design or redesign our current operations based upon this situation? Strategic Response What are the factors that contributed to/ caused this situation to occur? Is this event part of a recognizable pattern that we should try to understand? What are the long-term implications of any tactical/operational response we are considering or that we actually took? How is this situation related to other situations we have faced in the past, are currently facing in the present, or are likely to face in the future? What are the possible systemic and underlying causes driving the emergence of this issue? What are the long-term measures that we might use to evaluate our effectiveness at addressing this issue? What is our long-term desired outcome in this situation? How does this issue relate to our vision, strategic priorities, and our guiding values? Who are the long-term customers and stakeholders in this situation and how are they each affected by the issue and our intended actions? Where does long-term responsibility for taking action and being accountable for results lie? 2016, www.russellconsultinginc.com 6
Utilizing Your Strategic Thinking Mindset Case Study #1: You have seen a gradual increase in the number of workplace injuries in one of your production departments. Using a strategic thinking mindset, what issues will you examine and explore to address this problem tactically (immediate/short-term) and strategically (long-term)? Tactical/Operational Response Strategic Response Case Study #2: You are having great difficulty filling key technology positions that are critical to your company s success. Critical positions aren t being filled by people with the right skills and it s creating huge productivity and quality issues. As your company has moved further in the direction of a technology-driven manufacturing process you have found it increasingly challenging to find workers who have the needed technology skills, knowledge, and experience to fill key positions. Being located about an hour from Madison has its benefits (a highly motivated and available workforce and a laid-back, slow-paced environment) but it also has its downsides (many of the workers simply don t have the skill sets you need and it s hard to attract people to the area who have these skills). Other manufacturers in your area are facing the same problem. The local technical college has been slower than you d like in adjusting to the new skill requirements of local employers and the local high schools don t have the budgets to offer courses that lay the groundwork for developing these skills. You ve also heard that the Wisconsin Department of Workforce Development has a statewide initiative underway to address this issue. Using a strategic thinking mindset, what issues will you examine and explore to address this problem tactically (immediate/short-term) and strategically (long-term)? Tactical/Operational Response Strategic Response 2016, www.russellconsultinginc.com 7
Developing Strategic Thinkers... Developing Your Strategic Thinking Mindset What actions can you take to develop, strengthen, and enhance your strategic thinking mindset? Developing the Strategic Thinking Mindset of Others on Your Team What actions can you take to help develop, strengthen, and enhance the strategic thinking mindset of others on your HR team? 2016, www.russellconsultinginc.com 8
Developing/Strengthening a Strategic Thinking Mindset in HR 1. HR staffers to be strategic thinkers make it part of their hiring, orientation, and development. 2. Build strategic thinking into every HR description. 3. Integrate the vision and core values into HR and goal setting processes. 4. Invite HR staff members to share/discuss what they are from customers and what they see happening around them that might have a bearing on the organization s future success and HR s role. 5. Debrief HR challenges, problems, and crisis from a perspective pursue strategic insight and learning. 6. Define the HR not the means to get there and invite them to help build the right pathway. 7. Take time to listen and acknowledge their ideas. 8. Give people the freedom to make decisions (autonomy) but also provide them and a framework within which to operate (core values). 9. Encourage everyone to current HR practices (do this only if you really mean it!). 10. Share HR success stories - where HR was the! 11. Invest in building a strong HR (where there is a high level of trust, respect, appreciation, shared purpose, mutual learning, etc.). 12. Walk the model great strategic thinking in how you approach your own decision making, problem solving, crisis management, etc. 13. Take time, as an HR team, for a strategic thinking where you escape from the tactical and operational levels even if only for a half-day! 2016, www.russellconsultinginc.com 9