How CEO's Can Inspire Their HR Teams

A Few Fundamental ThoughtsEssential but not Sufficient

How CEO’s Inspire HR !

A CMMi Level 5 Company Who we are

High Technology GroupEstablished: 1984

Headquarters: Dayton, Ohio, US

Operating Locations: 25

Employees: 1500

Revenue: $ 550 million

• 14 Years of Information Technology Supply Chain Outsourcing services experience

• Guaranteed operational cost savings exceeding 20%

• Global collaboration & delivery model

• Decades of experience in off-shoring Source-to-Pay services

• Managing Centre of Excellence for many clients

• ISO, CMMI, Six Sigma Methodologies

A CMMi Level 5 Company Today’s CEO

Gone are the days when CEOs sat at the top, doing nothing constructive.

Today, they have to be leading a company to managing employees; linking organization objective and HR strategies with people management,

CEOs are the top tier of management within companies and have become the visible leadership that drives vision down through the ranks.Jack Welch

A CMMi Level 5 Company

Leaders Instill Rituals towards

creating Customer Delight-Internal &

External

A good example is the tractor company Deer & Co.'s gold key program. On the day the tractor will be assembled, the company invites the farmer that placed the order to the factory, along with his or her entire family. They are received by a employee who walks them through the factory and shows the finishing touches being put on their tractor. Once the tractor is finished, they give them a gold key, and the farmer uses it to start the tractor. It's a powerful scene for employees and the customer. They can't help but feel a sense of pride.

A CMMi Level 5 Company What CEO’s want from their HR

Compensation• Align compensation quantum• Align compensation structure

HR systems design• Performance Management • Recruitment systems and

profiles• Training & development• Retention strategy for key

performers

Organization structure• Organizational grades • Reporting relationships• Span of control

Employee communication• Revised business strategy• Future roles

Culture Change

enablement- Leadership

Personnel policies• Terms of employment• Leave, holidays

A CMMi Level 5 CompanyThe HR delivery Model

To deliver organizational excellence and become a valued business partner, HR is shifting its

focus from Administration to Business partnering

60% Administration

Business Partnering

Policy/Planning

Adminis-tration

Policy/Planning

30%

10%

20%

60%

20%

Outsourced activities to third party

Outsourced activities to employees

OLD HR service delivery model o NEW HR service deliv ery model

Business Partnering

Role Transformation

Process Redesign

Integrated System

A CMMi Level 5 Company Business and HR Imperatives


How HR is traditionally

perceived by other functions

A CMMi Level 5 Company HR Managers or Leaders?

• Management – Assures programs and

objectives are implemented

• Leadership – Casts vision and motivates

people to achieve it

“People don’t want to be managed. They want to be l ead. Whoever heard of a world manager?”

– Richard Kerr, United Technologies Corp, Bits and Pieces, March 1990


Building Blocks of HR

Leadership

Influence

Priorities

Integrity

Change

Self-discipline

Vision

People

A CMMi Level 5 Company Leadership Facts

A CMMi Level 5 Company The Indispensable Quality

Vision

“Where there is no vision, the people perish…” (Proverbs

28:19)

A CMMi Level 5 Company What is Leadership?

Influence

“What is leadership? Remove for a moment the moral issues behind it and there is only one definition: Leadership is the ability to obtain followers. ”

-James Georges, Par Training Corporation, in Executive Communications Magazine

A CMMi Level 5 Company The Key to Leadership?

Priorities

Success is the “progressive realization of a predetermined goal.”

A CMMi Level 5 Company The Prime Ingredient

Integrity

“The first key to greatness, is to be in reality what we appear to be.”

– Socrates

A CMMi Level 5 Company The Ultimate Test of Leadership

Change

“If you want to lead, you must change…if you want to continue to lead, you must continue to change.”

– Howard Hendricks

A CMMi Level 5 Company The Leader’s Greatest Asset

People

“No man will make a great leader who wants to do it all himself, or to get credit for doing it.”

– Andrew Carnegie

“It’s amazing what you can get accomplished when you don’t care who gets the credit.”

– Harry Truman

A CMMi Level 5 Company The Price of Leadership

Self-discipline

“ If leaders are to be successful, they must first lead themselves.”

– John Maxwell

A CMMi Level 5 Company Building Blocks of Leadership

Influence

Priorities

Integrity

Change

Self-discipline

Vision

People


What do High performing

organizations get right

• Senior Executives take an active personal interest in people-development initiatives• We anticipate and initiate change before changes is ‘imposed’.• We have experienced HR executives who play a critic al role in business planning/talent

management.• We take a systematic approach to performance manage ment and professional development.• We clearly and consistently align HR and competency development programs with the

business needs.• We continuously and systematically foster employee engagement an d commitment.

Immature Moderately Mature Highly Mature Mature

0 1 2 3 4

1.8

2.2

1.7

1.5

1.7

1.8

2.2

3.4

3.4

3.6

3.6

3.5

3.3

3.6

Human Capital Strategy

People Care

Human Capital Infrastructure

Career Management

Succession Planning Leadership Development

Learning Management

Knowledge Management

Organiztions thatscored in the topquartile of financialresults

Organizations thatscored in thebottomquartile of financialresults


How does your CEO’s look at HR

budgets?

• Significant shift from viewing employee expenses as cost to viewing them as a source of value

• Focus towards understanding the RoI on human capital investment

• Understanding cause and effect relationships

• Identifying areas where investments bring maximum value

15%

9%

32%28%

15%

0

5

10

15

20

25

30

35

Mainly asoperating

cost

Somewhatas a cost

50/50 Somewhatas sourceof value

Mainly assource of

value

% Respondents

Business focus has shifted from viewing employee ex pense as cost only to one driving growth


Does HR help in meeting

Financial Goals ?

Return on Equity

Real Revenue Growth

Employee Productivity

Staff Retention

Customer Satisfaction

Metric Extent to Which Human Performance Impacts Metric

Primary Human Performance Value Levers

10.2 %

4.4 %

2.1 %

1.1 %

$ 270, 000

$ 200, 000

84.6 %

78.5 %

Customer satisfaction increases 1.3% for every 5% increase in Employee Engagement

• Talent Acquisition

• Orientation/

Integration/Training

• Total Rewards

• People Care – from a ‘crowd’ to a community

• Knowledge Sharing/Professional Development

• Career Management

• Capability Development

Orgz with HR OD Programs

Orgz without HR OD Programs

A CMMi Level 5 CompanyP

ER

FO

RM

AN

CE

BUILDING

PHASE

SUSTAINMENT

PHASE

UNCERTAINITY

PHASE

DECAY/RENEWAL PHASE

(Sur

viva

l/Gro

wth

)

Policies

HR ProceduresHR Systems

Behaviors

Beliefs

LeadershipSystems

Training

Resources

Deny

RationalizeAvoid

Protect

Defend

Renewal Requirements

• Strategic Plan

• Leadership

• Learning

• Culture

• Relevance

• Resources

• Implementation

PR

OG

RE

SS

STABILITY/

MAINTENANCEProblem/

Opportunity

Decay

Unyielding MethodsRigid SystemsInflexible Behavior

Unchallenged BeliefsUnquestioned Assumptions

RENEWALNew Methods

New SystemsNew Behaviors

New BeliefsPerformance Measures

Life Cycle of HR Initiatives

time

A CMMi Level 5 Company Going up the Value Chain

1) Transactional

2) Tactical

3) StrategicGoing up!


Bring Transformation by

Simplification

Types of Questions

Should

Is

Cause

What is the desired state?

What is the current state?

What is the root issue?


Bring Transformation by

Simplification

Go for the SHOULD

Analyze the IS

Pin down the CAUSES

Select the right SOLUTIONS

GA

PS


Great Results Just Don’t

“Happen”

They are Orchestrated by Talented, Disciplined, and Dedicated Individuals

They Are Planned….Based on Analysis, Strategic Targeting, and careful Execution

Thank You