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Future trends in HR?HR from the outside in

Ontario Hospitals AssociationNovember 2014

Dave Ulrich dou@umich.eduwww.rbl.net

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Overall Goals

Ideas:About new business realities and how HR professionals can add value

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

HRImpact:

How do we make a difference in the work that gets done in organizations?

1. Future:  what’s next?2. Value added:  who 

uses?

3. Taxonomy:  simplify and apply

with

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Recent books

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Pre test

1. Whatisthe“biggestchallenge”inmyjobtoday?

2. Whatarethe“outcomes”ofeffectiveHR?(e.g.,financedeliverseconomicinsights;marketingcustomers;manufacturingqualityproducts,HR…??)

•••

3. WhataretherequirementsforeffectiveHRtransformation?

•••

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

5Question 1HR outside in: Evolution of HR

HR

Evo

lutio

n

Time

HR Administrative Utility

HR Strategy

HR Outside/In

HR Functional Expertise

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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HR outside in: HR practices

HR domain Examples of outside in

Staffing Are we the employer of choice of employees our customers would choose?

Training/development Do we involve customers in designing, attending, and delivering training and development?

Performance management Do our standards for effective performance match customer expectations?

Rewards Do we involve our customers (suppliers or investors) in allocating rewards?

Communication Do our communication tools link employees and customers?

Leadership Have we created a leadership brand where leaders actions are tied to customer expectations?

Culture Does our culture have the right events, patterns, and identity?

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

7Outside/inChanges in the world we live in…

CategorySTEPED Trends and Examples HR

Implications

Social •Changing lifestyle (family, urbanization, religion, well being)

•Working with diversity •••••

Technical Increasing pace of changeUsing technology for efficiency, relationships, and social networking

Economic Competing in global markets and competitionManaging across the economic cycle

Political Facing political unrestAdapting to regulatory shifts

Environmental Increasing sense of social responsibilityBuilding a community reputation

Demographic Adapting to the changing workforce (age, education, global, expectations)Managing succession

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

8HR Outside in:HR Creates Value to Key Stakeholders

Partners/Dealers Customers

Employees

Investors/Owners

Line Managers

KeyStakeholders

Communities/regulators

Market value• Financial

performance• Intangibles• Risk

Reputational value• Social responsibility• Regulatory oversight• Cultural awareness

Customer share• Target

customers• Customer

intimacy

Collaborative value• Partnerships• Outsourcing

Strategic value• Shaping strategy• Creating

organization traction

Employee value/ Productivity • Competence• Commitment• Contribution

•••••

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Evolution of Firm Valuation

Phase 1:FinancialDetermine a firm’s earnings or cash flow

(EBIDA, EVA)

Phase 2: IntangiblesDetermine ability for future earnings

(brand, R&D, systems, talent)

Phase 3: :Leadership CapitalDetermine leadership readiness

(individual leader; leadership capability)

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

10What is the value of a firm:Creating a “leadership capital index”

Financial performance

Intangibles performance

Leadership capital

INDIVIDUALPersonal leadership traits

ORGANIZATIONALHuman capital systemsdomains

Building personal proficiency

Articulating strategy

Executing/Getting things done

Managing people now and future

Differentiating leadership

Creating cultural capability

Building talent

Managing performance

Sharing information

Redefining work

elements

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Summary: Why HR creates value

Thinkofyourinteractionswithseniorlinemanagers.

•Whydotheyinviteyouin?•HowcanyoubuildacasethatHRwillcreatevaluefor

‐ Employees‐ Linemanagers‐ Customers‐ Investors‐ Community

•HowdoyoumakeHRtheir issue,notyours?•Changetheconversation…

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Pre test

1. Whatisthe“biggestchallenge”inmyjobtoday?

2. Whatarethe“outcomes”ofeffectiveHR?(e.g.,financedeliverseconomicinsights;marketingcustomers;manufacturingqualityproducts,HR…??)

•••

3. WhataretherequirementsforeffectiveHRtransformation?

•••

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Staff group Focus Information they bring

Finance Economic and financial performance

Financial data (EVA, EBIDTA, cash flow)

Marketing/sales Customer interest and patterns

Net promoter soreCustomer shareMarket share

Manufacturing Operational efficiency  ProductivityQualityEfficiency

Human Resources ? ?

Staff Groups at the Table

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

14Question 2:HR value creation: What value does HR create?

Indi

vidu

al

Abi

lity

Organization Capability

High TalentWorkforce

People

CultureWorkplaceProcess

Leaders Leadership

Low

Low High

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

15HR value creation: Importance of talent and teamwork

What percent of the time is the leading scorer (winner of the Golden Boot) on the team that wins the World Cup?

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Importance of talent and teamworkHow many of the 20 “Best Actor/ Best Actress” Academy Award winners in the last ten years were also in the “Best Picture” for that year?

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Roles for HR

Line managers as Owners

• Fully engaged• Make final decision• Accept accountability• Ensure follow up

HR Professionals asArchitects & Anthropologists

• Observe• Coach• Facilitate• Design• Deliver

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

18Question 2:HR value creation: What value does HR create?

Indi

vidu

al

Abi

lity

Organization Capability

High TalentWorkforce

People

CultureWorkplaceProcess

Leaders Leadership

Low

Low High

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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COMPETENCE(ability to do the work)

COMMITMENT (willing to do the work)

CONTRIBUTION(creating well being at work)

Talent (productivity) =

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

A new talent formula

ENGAGEMENT

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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HR value creation: CapabilityIn

divi

dual

A

bilit

y

Organization Capability

High TalentWorkforce

People

CultureWorkplaceProcess

Leaders Leadership

Low

Low High

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Culture from the outside/in

To what extent are we capable of creating a culture that shifts from event to pattern to identity?

EventEvent PatternPattern IdentityIdentity

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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How do we change culture?

5: LeadershipBrand

2: Top/down Intellectual agenda

3: Bottom/up :Behavioral agenda

4: Side to sideProcess agenda

Make identity real to employees

1: Define desired cultureWhat are the top 3 things we want to be known for by our best

customers (or other key stakeholders)?

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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What are the outcomes of HR?

high

highlow

TalentWorkforce

People

CultureWorkplace

Process

Leaders Leadership

inside

Indi

vidu

al A

bilit

y

Organization Capability

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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The challenges of effective leadership

Dimension of

leadership Question Challenge

WhyWhy should I work to improve my personal leadership and to build leadership in my organization?

Build the business case for leadership

WhatWhat do I have to do to be a better leader or to build better leadership in my organization?

Articulate the leadership brand, with both code and differentiators

How…BUILD

How can I help build leadership throughout the organization?

Create leadership brand throughout the organization

How…BE

How do I ensure that I turn what I know I should do into what I do?

Know and accomplish the 7 factors for leadership sustainability

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Pre test

1. Whatisthe“biggestchallenge”inmyjobtoday?

2. Whatarethe“outcomes”ofeffectiveHR?(e.g.,financedeliverseconomicinsights;marketingcustomers;manufacturingqualityproducts,HR…??)

•••

3. WhataretherequirementsforeffectiveHRtransformation?

•••

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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4 Phases of HR Transformation

BUSINESSCONTEXT

1

(why)

HRDESIGN

3

(how)

OUTCOMES

2

(what)

HR ACCOUNT-ABILITY

4

(who)

HR ValueProposition

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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HR Transformation (HR for HR)

BUSINESSCONTEXT

1

(why)

HRDESIGN

3

(how)

OUTCOMES

2

(what)

HR ACCOUNT-ABILITY

4

(who)

HR ValueProposition

HR outside/in• Context• stakeholders

HR outcomes/mission• Talent• Leadership• Capability

HR for HR• HR department/function• HR practices• HR competencies• HR analytics/metrics

HR accountability• Line: owner• HR: architect/

anthropologist• Employee: resident• Advisor: insight

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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HR professionals: competencies

© 2011 The RBL Group© The RBL Group November 2014/Future trends for HR? 3 Questions

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Pre test

1. Whatisthe“biggestchallenge”inmyjobtoday?

2. Whatarethe“outcomes”ofeffectiveHR?(e.g.,financedeliverseconomicinsights;marketingcustomers;manufacturingqualityproducts,HR…??)

•••

3. WhataretherequirementsforeffectiveHRtransformation?

•••