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HR: Driving Innovation & Disruption

HRismoreimportantthanever,peoplearetheonlysustainablesourceofcompetitiveadvantage.

WatsonWyattStudy

Youcantakemyfactories,burnupmybuildings,butgivememypeople,andI’llbringmybusinessrightbackagain.

HenryFord

HRisshiftingfromfocusingontheorganizationofthebusiness tofocusingonthebusinessoftheorganization

TheEvolutionofHRVa

lue–Im

pact/Con

tributiontoth

eBu

siness

Welfare Officer

LaborManager

PersonnelManagement

Human ResourceManagement

Strategic HR

1890-1913 1914-1939 1945-1979 1980-1990 2000tillnow2nd Industrial Revolution World Wars Globalization

• Administrativefocus• Compliance• TraditionalIndustrialsetting• Limitedscopeofactivity• Specializedfunctions

• Administrativefocus• Enlargedscopeofactivities

• Supportfunction• Lessreactive&moreproactive

• Businesspartner• Focusonvalue-addedactivities

• Proactive• Multi-discipline• Multi-facetedroles

JourneyofHRWorkVa

lue–Im

pact/Con

tributiontoth

eBu

siness

Welfare & Employee Care

EmployeeWelfare

LaborRelations

PersonnelAdmin

HumanResource

OrganizationalEffectiveness

EmployeeRelations

Safety & Worker’s Compensation

Labor/UnionRelations

Benefits

Compliance

EmployeeRelations

Survey ActionPlanning

Compensation

Training & Development

Staffing HRIS

Performance Management

Organizational Design

HR as Business Partner

Culture & Image

Shared Service Center

Strategic HR Planning COE

Transformational Work

Transactional Work

ContinuetoEvolve

Becomingabusinesspartnersoundseasybutinpracticedemandsashiftinmindsetandcapability

WhatCEOsreallywantfromHRThebusinessenvironment:

Requirescompaniesfocuson:

RequiresHRtochange:

• Globalization• Economicuncertainties• Technologyinnovations• ProfitabilitythruCost&Growth

• IntensifiedCompetition

• Increasingvalue• Organizationalcapabilitiesà fast,responsive,costeffective

• Creatingclimateforaction

• Uniquecompetitiveadvantage

• Businesssavvy• Alignwithstrategy• Strongbenchstrength• ChangeCatalyst• HelpBusinessLeaderstoachieveobjectives

TheChangingRoleofHR

HRneedstoalignservicedeliverytoaddmorestrategicvalue

Strategic15%

TransactionalorOperational

85%

Strategic60%

TransactionalorOperational

40%

Expandfocusbeyondtraditional&transactionalrole

KnowledgeRequirements

Stayingfocusedonkeybusiness

issues

Deliveringcapabilities

thatmakearealdifference

• Bringstrongtechnicalexpertisetothetableandanunderstandingofyourcompanyanditsstrategy

• Developnewskillsasneeded.Understandthedata,financialsandmarket

• Whataretheissuesthatmatter?

• What’skeepingbusinessleadersupatnight?

• What’sthe“elephantonthetable”regardingthefuture?

• Whatdrivesthebottomline?

• Focusonbusinessobjectives• Focusonenvironment

• Provideorganizationalcapabilitiesasrequiredbythebusinessobjectives

• People• Strategy• Culture

BecomingaStrategicBusinessPartner

TheRoleofHRFourRolesforHR• AdministrativeExpert• EmployeeChampion• ChangeAgent• StrategicPartner

DaveUlrichidentifiedfourdistinctrolesofHRprofessionalthatmayaddvaluetoabusinessandcreatesustainablecompetitiveadvantage.

Ulrich’sFourRoleHRModelFuture/StrategicFocus

DailyOperationalFocus

PeopleProcesses

ChangeAgentManagingTransformation&

Change

EffectingTransformation&Change

StrategicPartnerAligningHR&BusinessStrategy

ActiveRoleinsettingstrategicdirection

AdministrativeExpertManagingtheorganization’sHR

Infrastructure

ProcessOptimization&Efficiency

EmployeeChampionManagingEmployee’s

Contribution

Motivated&CompetentPersonnel

Ulrich’sFourRoleHRModelFuture/StrategicFocus

DailyOperationalFocus

PeopleProcesses

ChangeAgentManagingTransformation&

Change

EffectingTransformation&Change

StrategicPartnerAligningHR&BusinessStrategy

ActiveRoleinsettingstrategicdirection

AdministrativeExpertManagingtheorganization’sHR

Infrastructure

ProcessOptimization&Efficiency

EmployeeChampionManagingEmployee’s

Contribution

Motivated&CompetentPersonnel

Createsissueswhennotdonewell!

Ulrich’sFourRoleHRModelFuture/StrategicFocus

DailyOperationalFocus

PeopleProcesses

ChangeAgentManagingTransformation&

Change

EffectingTransformation&Change

StrategicPartnerAligningHR&BusinessStrategy

ActiveRoleinsettingstrategicdirection

AdministrativeExpertManagingtheorganization’sHR

Infrastructure

ProcessOptimization&Efficiency

EmployeeChampionManagingEmployee’s

Contribution

Motivated&CompetentPersonnel

Organizationgainsstrategicadvantagewhendonewell!

HRasaStrategicPartner

CoreCompetencies

BusinessMastery

PersonalCredibility

HRMastery

HRshouldbeableto:• Facilitatestrategydevelopmentforbusiness

teamsbyusingdifferenttechniques• Planandfacilitatestrategydeploymenttothe

wholeorganization• Aligntheorganizationstrategywiththe

businessstrategytoensureitwillbedelivered• Redesigntheorganizationtosupportthe

strategy

HRasaStrategicPartner

• Becomingatrue“player”onstrategicbusinessissuesà abletochallengebusinessleadersontheirownground

• Architectwhocansynthetizebestpractices:TotalReward,TalentManagement,andmoreintointegratedsolutionsandimplementatspeed

• Shiftingfromadvisingandconsultingtochallenging,provokingandconfronting businessleaders

• ForwardFacing– Notlookingatthepastbutengagingthefuture

MovingtowardsStrategicPartnering

• Invited&Involvedindiscussionsonthe“PeopleImplications”ofachangeornewinitiativebeforethingsgowrong

• LineManagersconfideinyouabouttheirconcernsandproblemseventhoughyouarenotprovidingasolutionrightaway

• Managersencourageyoutotackleissuesintheirareasandexpressconfidenceinyourabilitytodothingsneverdonebefore

• Engageingenuinedialoguewithlinemanagers• Timeframeofyourworksmovesfrompresent/pasttowardsthefuture• The“Why”ofwhatyouaredoingisveryclearintermsoforganizationalneed.