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Emerging trends in HR value creation
GMASHRMMadison, WisconsinMay 2016
Dave Ulrich [email protected]
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Overall Goals
IdeasAbout new business realities and how HR professionals
add value
TalkEngage in new conversations and access new information
ToolsCreate tools (processes and
systems) to create value
Time Spend time on things that make
a difference
HRImpact
How can HR improve the work that gets done in organizations?
FutureWhat’s next?
Value addedWho uses?
Taxonomy Simplify and apply
with
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Selected Books
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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New Context for HR
VUCA World(volatility, uncertainty, change, and ambiguity)
Realty tv to realty politics, organizations, life
Setting
Organization challenge
HR Implication
Value CreationHow do we make smart people better together?
• Leadership success criteria• Board time and interests• Individual value by receiver• Organization value• HR value
STEPED ChangesSocial, technological, economic, political,
environmental, demographicchanges
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Pre test
1. Perspective:Whatisthe“biggestchallenge”inmyjobtoday?
2. Outcomes:Whatarethe“outcomes”ofeffectiveHR?(e.g.,financedeliverseconomicinsights;marketingcustomers;manufacturingqualityproducts,HR…??)
•••
3. Transformation:WhataretherequirementsforeffectiveHRtransformation?
•••
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
6Question 1HR outside in: Evolution of HR
HR
Evo
luti
on
Time
HR Administrative Utility
HR Strategy
HR Outside/In
HR Functional Expertise
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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HR outside in
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 Do we have a leadership brand connected to customer expectations?
Culture Does our culture have the right events, patterns, and identity?
CONTEXT:Social, technological,economic, political,
environmental, demographic conditions
STAKEHOLDERS:INSIDE: employees, line managers, organizationOUTSIDE: customers, investors,
communities
HR PRACTICES
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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1. Read positive and negative analyst reports
2. Read magazines, newspapers and articles about your company
3. Read magazines, newspapers and articles about your industry
4. Attend industry trade shows
5. Master internal market reports
6. Learn how internal market reports are generated
7. Visit customers in their buying context
8. Visit customers in their product or service utilization context
9. Study competitors in detail
10. Be personally involved in market research
How do HR Professionals gain external knowledge and insights?
11. Track financial analysis of market segments
12. Attend marketing meetings
13. Attached product development meetings
14. Attend sales meetings
15. Invite customers, analysts and shareholders to address training programs
16. Invite customers, analysts and shareholders to attend training programs
17. Invite customers, analysts and shareholders to address management meetings
18. Invite customers, analysts and shareholders to address HR meetings
19. Invite customers, analysts and shareholders to address meetings of line operators
20. Know what you don’t know
Reference: Wayne Brockbank
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Pre test
1. Perspective:Whatisthe“biggestchallenge”inmyjobtoday?
2. Outcomes:Whatarethe“outcomes”ofeffectiveHR?(e.g.,financedeliverseconomicinsights;marketingcustomers;manufacturingqualityproducts,HR…??)
•••
3. Transformation:WhataretherequirementsforeffectiveHRtransformation?
•••
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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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 May 2016 / Emerging trends in HR value creation
12Question 2:HR value creation: What value does HR create?
Ind
ivid
ual
A
bili
ty
Organization Capability
HighTalent
WorkforcePeople
CultureWorkplaceProcess
Leaders Leadership
Low
Low High
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
13HR 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 May 2016 / Emerging trends in HR value creation
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Importance of talent and teamwork
How many of the “Best Actor/ Best Actress… Director” Academy Award winners in the last twenty years were also in the “Best Picture” for that year? …
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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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
• Architect: puzzle solving, frameworks, blueprints
• Anthropologists: mystery seeking, observations, patterns
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
16Question 2:HR value creation: What value does HR create?
Ind
ivid
ual
A
bili
ty
Organization Capability
HighTalent
WorkforcePeople
CultureWorkplaceProcess
Leaders Leadership
Low
Low High
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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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 May 2016 / Emerging trends in HR value creation
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CompetenceStage Questions Hints
Set standards What are the skills for new employees?
• Balance technical and cultural• Hire for the future not past
Source candidates
How do we source new candidates?
• Seek referrals from top employees• Use search firms
Screen candidates
How do we know ifcandidate fits?
Do initial and more detailed screening, including cultural fit
Secure candidate
How do we create value for potential employee?
Build an employee value proposition for top candidates?
Steering candidate
How do we orient or on board new employees?
Help new employee learn norms and expectations
Managing performance
How do we make sure our people perform well?
• Focus on conversation more thanappraisal process
Developing forfuture
How do we best invest in developing current talent?
Increase learning opportunities (on job, guest training, outside of work)
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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HR value creation: Capability
Ind
ivid
ual
A
bili
ty
Organization Capability
HighTalent
WorkforcePeople
CultureWorkplaceProcess
Leaders Leadership
Low
Low High
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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What is culture?Culture is the ability to shift from an event to a pattern and ultimately to an identity
Event Pattern Identity
• Symbols• Rituals• Stories• Physical setting
• Values (what we believe)• Norms (our expected behaviors;
unwritten rules; rituals)• Ways we make decisions,
manage information, treat people, handle conflict/differences
• Customer: What are our customer buying criteria/value proposition?
• Brand: What is our desired brand?
• Identity: what are known for?• Reputation: what is our
community image?
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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HR value creation: Capability
Ind
ivid
ual
A
bili
ty
Organization Capability
HighTalent
WorkforcePeople
CultureWorkplaceProcess
Leaders Leadership
Low
Low High
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Leadership Test
WHY1
On a scale of 1 (low) to 10 (high) how important is “leadership” to our future success? Why?
Build business case for leadership at all levels
WHAT2
What are the key requirements (knowledge, skills, behaviors) to be an effective leader?
Create a leadership brand that includes the leadership code (basics) and differentiators.
HOW TO BUILD
3On a scale of 1 to 10, how well do we BUILD future leaders? What
could we do better?
Invest in building leaders throughout the organization.
HOW TO BE
4On a scale of 1 to 10, how committed am I to be a better leader? How do I show it?
Ensure that individual leaders sustain their improvement
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Pre test
1. Perspective:Whatisthe“biggestchallenge”inmyjobtoday?
2. Outcomes:Whatarethe“outcomes”ofeffectiveHR?(e.g.,financedeliverseconomicinsights;marketingcustomers;manufacturingqualityproducts,HR…??)
•••
3. Transformation:WhataretherequirementsforeffectiveHRtransformation?
•••
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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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
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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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 May 2016 / Emerging trends in HR value creation
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Run the HR function as if it is a business within a business.
Overriding HR re-design principles
1. Differentiate clearly between transactional (foundational or essential) and strategic HR work.
2. Make the HR organization follow the logic and structure of the business organization.
3. Make the HR organization follow the flow of any professional service oriented organization.
4. Focus on relationships more than roles
HR Department
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Principle 4: HR Department Relationships
Keys to an effective relationship
Hints and observations
Share a common purpose • Find common purpose (strategic HR… outside in)• Create overall measures
Respect differences • Focus on strengths and express appreciation (5:1)• Recognize “love maps” of other groups
Govern, accept, connect • Manage expectations (60 to 65% managed not solved)• Clarify decision rights and manage conflict
Care for others • Delight in and celebrate others’ successes• Build trust with predictability, dependability, reliability
Share experiences • Defend and turn to each other; respond to bids 80%• Be emotionally vulnerable; take risks
Grow together • Learn together about what works and what does not• Focus on the future
??
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
28HR Competencies 2016Research team
• Mike Ulrich, Co-Director• David Kryscynski, Co-Director• Dave Ulrich, Principal• Wayne Brockbank, Principal• Jacqueline Slade, Project Manager
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
29HR Competencies 2016Thanks to Twenty-Two Regional Partners
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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HR professionals: competencies
Strategic enablers
Foundationalenablers
Coredrivers
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Key questions for HR Competence
• 9 overall competency domains• 3 core drivers; 3 strategic enablers; 3
foundational enablers
What are overall competencies for HR professionals?
• Be a credible activistHow do you get invited to the table?
• If inside (employee, line), be credible activist• If outside (customer, investor), be a strategic
positioner
Which stakeholders are you representing while at the table?
• Navigate paradox (manage tension and divergent convergent cycle)
How do you create business value?
• Recognize the importance of HR department• Build capabilities (information, speed, culture,
collaboration
How do you build an HR department?
© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Great Time to Be in HR
• HR is not about HR• Think outside in• Connect HR to investors and customers• Look beyond strategy
Perspective
• Talent: competence x commitment x contribution
• Leadership: why, what, how• Culture: behavior, pattern, identity
Outcomes
• HR governance/department• HR practices• HR competencies• HR analytics
Transformation
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© 2011 The RBL Group© The RBL Group May 2016 / Emerging trends in HR value creation
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Let’s stay connected!!!
For more information or follow up, contact Ginger Bitter [email protected] or go to www.rbl.net
@dave_ulrich
Invite me to connect with you on LinkedIn to view my regular posts with insights and tips.