Agile Human Resources The Top 10 Challenges of Agile Teams Fabiola Eyholzer Sep-21-2016 People Operations (HR) is the key to embracing agility on an enterprise level. Fabiola Eyholzer, Just Leading Solutions LLC
You can have the best strategy and the best building in the world, but if you don t have the hearts and minds of the people who work with you, none of it comes to life. Renee West
Agenda 1 The Importance of People and HR in VUCA Times 2 What Agile Teams Say About HR And How to Fix It 3 People Operations (HR) The Key To Enterprise Agility 3
Agile Human Resources The Importance of People and HR in VUCA Times 4
Fact is: We live in VUCA times and have to respond to its challenges Volatility Uncertainty Complexity Ambiguity 5
We rely on intrinsically motivated learning workers like never before 6
Agile has evolved as the new way of working 7
Agile highlights the disconnect of traditional HR in the digital age Environment dynamic stable Traditional Human Resources Lean Agile People Operations Theory X Theory Y Leadership 8
Human Resources is facing its biggest transformation yet 9
Agile HR is about supporting the organization by doing & being Agile Agile HR Solutions Agile HR Organization 10
Agile Manifesto adapted for Human Resources Individuals and interactions over processes and tools Inspire and engage over manage and retain Collaboration over organizational structures Responding to individual needs over follow ing a career plan Manifesto for Agile HR Source: The Agile Manifesto adapted for Human Resources by Just Leading Solutions 2014 11
Agile Human Resources What Agile Teams Say About HR And How to Fix It 12
What Agile teams say about HR: A Disclaimer! Dear People s People the next slide illustrates the top ten (unfiltered and uncomfortable) comments from Agile teams about how HR instruments, processes, and interactions are being perceived and experienced in an Agile setting. And even though the complaints probably bear some truth, many are falsely directed at HR; while others simply highlight the discrepancy between intended and realized solutions. Please bear with us, we will give you a voice. Thanks 13
What Agile teams say about HR and HR does not like to hear Source: Infographic by Just Leading Solutions, 2015 Download free infographic: www.justleadingsolutions.com/ infographic-10-things-hr-does-not-want-to-hear-from-agile/ 14
#1 Performance Management Shift to Iterative Performance Flow Align performance cycle with iterations Utilize planning sessions to share vision, set inspiring goals, and clarify expectations Continuously inspect and adapt Accept dealing with performance issues as leadership role Decouple Performance Management from HR instrument like Compensation and Talent Management Download free whitepaper: www.justleadingsolutions.com/library 95% of managers are dissatisfied with their performance mgmt systems Deloitte spent close to 2 million hours a year on evaluations Only 2% of HR professionals rate their Performance Management with a Grade A. Sources: Corporate Executive Board 2014 Harvard Business Review April 2015: Reinventing Performance Management by Marcus Buckingham & Ashley Goodall SHRM Survey: HR Professionals Perceptions about PM effectiveness 2014 15
#2 Compensation Base Salaries Pay adequate base salaries Decentralize salary decisions Bring transparency to the salary structure Incentives Motivate through mastery, autonomy, and purpose Avoid individual bonuses (toxic for agile teams) Combine various forms of recognition Benefits Embrace holistic approach to benefits Provide benefits that people value Invest in the health and wellbeing of people 89% of employers think their people leave for more money, but only 12% of employees actually do leave for more money 65% of employees satisfied in their roles said they would also work harder if they were better recognized at work Sources: Employee Engagement 2014, Daily Infographic Workforce Mood Tracker survey via Social Knows: Employee Engagement Statistics 16
#3 Employee Appraisals Eliminate employee appraisals in favor of continuous feedback Create open feedback culture with a focus to continuous learning and improvement on an individual but also organizational level Develop and support leaders who: Are life-long learner, teacher, and people developer Trust their people to act in the best interest of the team and the organization Empower people to create their own approach and make decisions Engage in continuous listening, communication and feedback to identify development areas and boost learning 30% Performance reviews actually end up decreasing performance 10% of FTE 500 have already eliminated Employee Appraisals 77% of workers say they are not given feedback that will help them advance Sources: Co.Tribute: A Performance Review That Actually Means Something by Carson Leith, Mar-2016 Why Employee Performance Reviews Are So Old School, Millie Dent, The Fiscal Times, Jul-2015 Harvard Business Review, June, 2012; Talent Management, May 2012 Image, Discovery Education 17
#4 Talent Development Learning Create a learning organization Constantly inspect & adapt Evolve through continuous improvement Implement new ways of learning & sharing Provide easy access to and exchange of skills, knowledge, and tools Growth Empower employees to take the lead Understand modern jobs & career paths Illustrate prospective role-based career paths Use regular dialogues & individual career coaching Apply agile workforce planning & talent scouting Corporations spend an estimated $145 billion annually on training. Yet fewer than half those investments result in tangible returns, despite the fact that 84% of learners find L&D solutions satisfying Only 8 percent believe they have excellent programs to build global skills and experiences Sources: CEB HR 2014 Global Human Capital Trends 2014, Deloitte 18
#5 Talent Acquisition Talent Acquisition Build a strong employer brand Proactively attract & engage talent Replace job descriptions with value descriptions Hire for attitude & cultural fit ( people over paper ) Inspire candidates with the larger sense of purpose Gamify the talent acquisition experience Make a solid, team-based decision Excel at onboarding Talent Departure Hire slow, fire (move) fast Don t burn any bridges and stay connected Turn leaving talents into winning ambassadors 8 in 10 organizations already have difficulty filling positions Unfilled positions cost the U.S. economy $160 billion a year The average time spent by recruiters looking at a resume: 5 to 7 seconds 78% of resumes are misleading Sources: Insight Foresight 2015, Bounty Jobs Business2Community "25 Fun Facts About Resumes, Interviews & Social Recruitment" 2014 Gradschoolub: Fudging the facts on a resume 19
#6 Policies & Regulations Honor interactions over processes Embrace the new talent contract Support an agile leadership style Move from control n command to empowerment Create processes & conditions to stop micromanagement Design agile people solutions that are accessible accommodating co-created constantly evolving People who spent 1-6 hours with their direct leader, became: 29% more inspired about their work 30% more engaged (that is, likely to recommend their company as a great place to work) 16% more innovative, and 15% more intrinsically motivated. Source: IQ Leadership Survey 2014 20
#7 Engagement Focus on engagement not retention Embed Agile values into your corporate DNA Shape a strong culture, where core values are lived up to by everyone every day. Create an inspiring work environment to allow an optimal workflow Open up your organizational structure to meet the demands of a connected network Employee Disengagement Is Costing The US $500 Billion Per Year 88% of employees don't have passion for their work. Sources: Office Vibe "13 Disturbing Facts About Employee Engagement ", Nov- 2014 21
#8 HR Instruments Redesign HR instruments to avoid status quo with: people decisions and policies dictated by hidden forces, especially Finance and Legal instruments are driven to handle poor performance and mediocrity instruments that must make up for weak managers and uninspiring leaders, costing companies billions Bring agile values and principles to HR solutions Stop playing nice all the time Get rid of the box Download free whitepaper: www.justleadingsolutions.com/library 55% of companies reengineered key HR processes in the past 18 months Less than 50% of chief financial officers appear to understand the return on their investments in human capital. Source: 2014 HR Service Delivery and Technology Survey, Towers Watson Accenturevia Social Knows: Employee Engagement Statistics 22
#9 Trust in People s People Honor agile values and principles Build trust Reclaim role as people s people 24% of employees don t trust their employer Declining employee loyalty is thought to harm organizations by causing low morale (84%), high turnover (80%), disengagement (80%), growing distrust (76%), and lack of team spirit (73%) Sources: Employee Distrust is Pervasive in U.S. Workforce, American Psychological Association via Employee Engagement & Loyalty Statistics 2014 by B. Carter American Management Association (AMA) Database 2015 23
#10 HR Pro Learning Journey Get educate in Agile Participate in Agile ceremonies Get certified in Agile and Agile HR Embark on your own Agile HR journey Trigger Initiate Initial retrospective Initial backlog Iterate 92% of recognized & engaged employees say they feel proud to work at their company Companies with engaged employees: have 9% higher shareholder returns make 2.5x more in revenues achieve 2x the annual net income Sources: Infographic 2013, Kudos Torben Rick, Infographic 2014 Employee Engagement 2014, Daily Infographic 24
Agile Human Resources People Operations (HR) The Key To Enterprise Agility 25
HR is the key (and secret weapon) to Enterprise Agility 26
Top trends 2016 highlight: Agile HR is a reality Dec-1-2015 }HR embraces agile (# 1 of 11 HR Trends for 2016) Jan-25-2016 }HR drives the agile organization Jan-20-2016 }2016 to welcome the acceleration of agile adoption outside IT 27
The time is right to invest People Operations Agile Teams Involve your HR Pros Training HR in agile is not enough Set HR up for success & guide their agile journey Let your People's people have some fun too Cut HR some slack People Teams: Reach out to your Agile teams Participate in Agile ceremonies Educate yourself Kick-start / Boost your Agile HR journey Understand your organization and find your way 28
Investing in your People Operations is an investment in your people 29
To win in the marketplace you must first win in the workplace. Doug Conant, CEO of Campbell s Soup
Questions?
Thank you for attending Fabiola Eyholzer Sep-21-2016 E-Mail: fabiola.eyholzer@justleadingsolutions.com LinkedIn: /FabiolaEyholzer Twitter: @FabiolaEyholzer