Track 1 joris xl

Event ManagementTraining & ConferencesKnowledge Development Center

HR as Strategic Business Partner

Joris de Fretes

9 December 2009

Linking HR efforts directly to the business strategy and to the environmental factors

that frame the strategy.

Strategic Business Partner

“HR Transformation”, Dave Ulrich, 2009


PRINCIPLES FOR building HR FUTURE

• HR Strategy must be anchored to the business strategy.

• HR Management is NOT about programs; it’s about relationships.

• The HR Department must be known as the part of the organization that “anticipates change” and “understands what is necessary to respond to it.”

• HR Executives should be an outspoken advocate of employees interests, yet it must understand that business decisions have to balance a range of factors that often conflict with one another.

• The effectiveness of HR efforts depend on staying focused on issues rather than personalities.

• HR Executives must accept that constant learning and skill enhancement are essential to their being an effective contributor to the business.

“Creating A Human Resources Strategy For Your Business”, Jan Spak, 2002

Some Questions

• Are all HR professionals in your organization have a strong understanding of the business, competitors, and the external business environment ?

• Has HR works already takes an outside‐in approach based on external stakeholder (i.e. customer, regulator, investor) ?

• Has our organization clearly defined organizational capabilities that ensure strategy execution ?

• Are our HR leaders focus on business result ?


Why Do the Transformation

BUSINESS CONTEXT

BUSINESS STRATEGY

HR REDESIGN

TRADITIONAL HR

HR TRANSFOR-MATION

• Traditional HR begins by focusing on HR issues and redesigning HR governance or practices.

• HR Transformation begins with an understanding of the context in which the business operates (both general conditions and specific stakeholders).

The context of business setting captures “why”of HR transformation.

Identify readiness level for HR transformation

through HR Strategy Assessment

HR’s role must be transformed in order to deliver value to customers, shareholders, managers and employees

This transformation requires integrating the various HR practices and focusing them jointly on value-added agendas such as intangibles, customer connection, organization capabilities and individual abilities

“HR Value Propositions”, Ulrich and Brockbank, 2005

Transformation Focus


6 implications for HR transformation

• HR works does not begin with HR ‐ it begins with the business, how HR activities create value for the stakeholders

• HR must have a direct line of sight to the market place – to customer who buy the products and to shareholders who provide capital

• HR must be framed as a source of competitive advantage – able to create human abilities and organizationalk capabilities better than competitors

• HR professionals must align practices with the requirements of internal and external stakeholders

• HR professionals must acquire the personal knowledge and skills necessary to link HR activity to stakeholder value

• HR professionals need to be able to spell out how to provide a unique and powerful perspective of the linkages between employee commitment, customer attitude and investor returns

Ulrich and Brockbank – HR Value Propositions

HR Transformation Process

Business ContextGlobalization TechnologyEmployee inside Customer and Consumer outsideInvestors Competitors

Organization ChallengesTo respond the business context the organization need to be good at

Talent Learning Speed to change Leadership brandShared mindset, culture Innovation Accountabilityor firm brand Strategic clarity Collaboration Efficiency

HR respondResponding to these challenges affects all five dimensions of HR

HR Profession

HR Practices

HR Professionals

HR Function

Management of People andOrganization HR

Dimensions


Organizational Challenges

CHALLENGES – WE ARE GOOD at.. CAPABILITY OF HR ORGANIZATION COMPETENCIES OF HR PROFESSIONALS

Talent Assuring competent & committed people

Able to attract, motivate, retain, and engage competent employees

• Do talent audit• Build employee value preposition

SpeedMaking important changes happens fast

Able to change and change quickly to align with customer needs

• Build a discipline change process• Assimilate change into a new identity

Shared Mind SetTurning customer reputation and identity into employee actions

Able to build a culture that reflect customer expectation and turn them into employee actions

• Perform a cultural audit•Make customer reputation real to the employee

AccountabilityImplementing discipline that result in high performance

Able to meet commitment • Build and implement PMS

CollaborationsWorking across boundaries

Able to make the whole more than the sum of parts • Build productivity improvement effort• Sharing ideas, people, products, services

LearningGenerating & generalizing ideas with impacts

Able to generate new ideas & generalize them across boundaries

• Generate new ideas• Generalize them across boundaries

Leadership BrandEmbedding leaders throughout organization who embody leadership brand

Able to identify leadership brand that connect customer reputation and employee behavior

• Ensure leaders demonstrate leadership basics/code

Customer ConnectionsBuilding trust with targeted customers

Able to create practices that create customer connectivity

• Convergence between employee and customer mindset

InnovationsDoing something new both content & processes

Able to innovate and create new ways • Establish innovation protocols • Instill spirit of innovation among all employees

Strategic UnitsArticulating & sharing a strategic point of view

Able to create a unity of share understanding of the desire strategy

• Create an intellectual, behavioral and process agenda

EfficiencyManaging cost of operations

Able to manage cost efficiently • Reduce costs through process, people & projects

‘how-to” HCD transformation into Business Partner

Knowing the externalBusiness realities

Ensuring HR professionalism

Building HR resources Creating HR practices

Serving external & internal

stakeholders

– Technology– Economics– Demography

– Roles – Competency– Development

– Strategy– Organization

– People– Environment– Information

– Employees– Customers– Investors

HCD value proposition

These elements frame the agenda for HCD going forward and set new measurement of HCD capabilities in delivering values to the company


Transformation Criteria

HR Value Proposition Element

• Knowing the external business realities

• Serving external and internal stakeholders

HR Transformation Criteria

• Criterion 1 : HR professionals recognize external business realities and adapt HR practices and allocate HR resources accordingly

• Criterion 2 : HR function creates market value for investors by increasing intagibles

• Criterion 3 : HR increases customer share by connecting with target customers

• Criterion 4 : HR function helps their managers deliver strategy by building organization capabilities

• Criterion 5 : HR function clarifies and establishes an employee value proposition and enhances individual abilities

Transformation CriteriaHR Value Proposition Element

• Creating HR practices

• Building HR resources


• Criterion 6: HR function manages people processes and practices in ways that add value

• Criterion 7 : HR function manages performance management processes and practices in ways that add value

• Criterion 8 : HR function manages information processes and practices in ways that add value

• Criterion 9 : HR function manages work flow design and processes in ways that add value

• Criterion 10 : HR function aligns its organization to the strategy of the business

• Criterion 11 : HR function has a clear strategic planning process for aligning HR investments with business goals


Transformation CriteriaHR Value Proposition Element

• Ensuring HR practices


• Criterion 12 : HR function has HR professionals who play clear and appropriate roles

• Criterion 13 : HR function builds HR professionals who demonstrates HR competencies

• Criterion 14 : HR function invests in training and development of HR professionals

Ulrich and Brockbank – HR Value Propositions

What drives performance in the new HR Model

Shared service center

HR Business Partner

Center ofExcellence

My credibility rest in .........

Therefore I need .........• Strong transactional solutions• Integration across processes• Integration of customer

management and HRmanagement activity

• Performance measurement tools

• Financial measurement tools

• Customer experience• Delivery of KPI• Cost Performance• Visible continous improvement

• Bring close to thebusiness

• Flexing HR delivery toadopt business changes

• Having skills to deliver

• Deep skills and credibility• Specialized tool set• Accurate predictive

capability

To predict business demand and model the outcomes – for example how to translate :seasonal to resourcingpeaks strategydeveloment to organizationnew market designsales force to integratedperformance performance

reward system

• Specialist not generic tools• External benchmark• Scorecard metrics• Predictive capability


Future HR CompetenciesStrategic contribution: Manage culture, facilitate "fast change“, involved

in strategic decision‐making, and create market‐driven connectivity.

Personal credibility: Credible to both their HR counterparts and the line managers whom they serve. They also have effective writing and verbal skills.

HR delivery: Focus HR activities in four key areas: staffing, training & development, performance management, managing/ measuring the impact of overall HR practices.

Business knowledge: Keen understanding of how the firm creates wealth, how the firm is horizontally integrated (e.g., how sales and marketing relate to manufacturing), and what the industry challenges are.

Knowledge of HR technology: Able to leverage technology for HR practices and use e‐HR/Web‐based channels to deliver value to customers.

University of Michigan, Ann Arbor, HR competencies Study, 2005

Domains of Competencies for HR Professionals

• Knowledge of the business • Delivery of HR practices • Ability to manage change• Culture management• Personal credibility• Financial management • External competitive and customer demands• Strategic HR performance management

• Critical causal thinking, • Understanding principles of good management, • Estimating causal relationships, and • “Executive” communication (to communicate HR strategic

performance results to senior line managers.)

David Ulrich, “HR Scorecard”, 2001


HR Transformation Milestone Checklist

1BusinessContext(WHY)

2Outcomes (WHAT)

4HR

Account-ability

(WHO)

3HR

Design(HOW)

• Business Demands• Globalization• Technology• Investors• Competitors

• Stakeholder capabilities

• HR capabilities

• HR Organization• HR Process• HR people management• HR Skills & Competencies• HR Culture and mindset

• HR Leadership Team• Line Managers• External Customers &

Investors• Consultant &

Advisors

XL Experience


Nature of telecommunication industry that drives HR strategy :

•Capability in technology change rapidly•Capability in financial capital intensive •Capability in regulation new industry, not “mature”•Capability to understand customer needs trends, segmented customers

Business Context

Need alignment to company directionNeed to clarify role, accountability, & capabilitiesNeed to revamp organization to create strong platformTo realize business strategic partner role to function

1

2

3

4

The Background

To anticipate industry dynamics and internal business requirements, we are looking at several aspects to address:


Organization Human Capital Development

Director

HC Business Partnership

Learning and DevelopmentHC Operation

HC Strategy andPlanning

• Employee Relations• Reward Management• Resourse Management• HC Information System• Employee Branding• Corporate Culture

• Managerial Competency Dev. • Knowledge Management• Technical Competency Dev.• Leadership Lounge

• Performance Management• Talent Management• Organization Development• Organization Productivity

Source: Reengineering Human Resources, Lyle M. Spencer, Jr., Ph.D.

TODAY

Value to the business

30%

10%

60% StrategicStrategicStrategic

DeliveryDeliveryDelivery

ministratministratministrat ionionionAdAdAd

TOMORROW

Processes are standardized and streamlined, while maintaining high flexibility for improvements

Organization improvement is to contribute more values to the business

StrategicStrategicStrategic

DeliveryDeliveryDelivery

AdministrationAdministrationAdministration

ResourcesResources

10%10%

30%30%

60%60%

Resource


HCD operational roles1HCD operational roles1

• As a strategic business partner-alignment of HR activities and initiatives with the company strategy

• As an organizational change agent-supporting the change and transition of the business in the area of the human capital in the organization

• As a champion of operational excellence - to provide quality service at the lowest possible costs to the organization

• Building relationship with internal & external business partner- the employee advocate is able to take care about the interest of employees

1adopted from D Ulrich “HR Roles Model”2adopted from G Haines “Center for Strategic management”

HCD Key Deliverables2HCD Key Deliverables2

Key deliverables are identified as spearhead in realizing unit objectives

Strategic People Management

Acquiring Talented Workforce

Creating learning organization

Collaborating withstakeholders

Engaging Workforce

Building high performance

team

CreatingOrganization

culture

Be strategic business partner

Alignment with company Strategic plan

Leadership

Personal XLenceXLence Plan - performance setting process

which ensures individual objectives and development plans are directly linked to achieving

business plan goals.

XLence Check Point - critical to the whole Personal XLenceprocess. In this review, the superiors are required to lead and support the employees on pursuing the target achievement. This session is also to discuss the progress of objective/achievement compare with the target planned.

XLence Evaluation - the completion of

Personal XLence process is the annual

Performance Evaluation. This written review should

summarize the ongoing feedback, both formal and informal, given throughout

the year.


Talents Pool

E5

E4

E3

E2

E1T1

T3

T2

T4

T5 Staff, Officer,Engineer, Analyst

Supervisors

Managers

Vice PresidentGeneral Managers

DIRECTORS

Employee PopulationTalents Pool

POTE

NTI

AL

CURRENT PERFORMANCE

Outstanding Future Potential

StrongFuturePotential

StableFuturePotential

Has Issues/Insufficient data

WATCH LIST

WATCH LIST

UNKNOWN/WATCH LIST

Demonstrates Performance

Emerging Performers(3 – 5 years)

Accelerated Development

Pool(1 – 3 years)

Solid Performers

Stands Out


Pool(1 – 3 years)


Pool(Immediate)

Solid Performers

Development Plan

PERFORMANCE DEVELOPMENTC

OM

PETE

NC

YD

EVEL

OPM

ENT


Management DevelopmentProgram for GMs

Session 1MANAGING BUSINESS

PERFORMANCEBy Practicing Sound People Leadership

The 1st session modules help participants strengthen the basics for achievingbusiness results and for setting up sound practices in people leadership

WHY?

Session 2

The 2nd session modules support participants in further developing capabilities to ensure business success through stronger collaboration both internally and externally.

WHY?

Five-days program• Competencies addressed:

• Commercial Orientation; • Visionary Leadership; • Strategic Decision Making;• Change Leadership; • Aligning Performance for Success; • Delegating Responsibilities

PARTNERSHIP FOR EXCELLENCEBy Developing Creative Synergy

Three-days program• Competencies addressed:

• Building Business Partnership; • Building Trust; • Communication; • Customer Focus

To revamp internal HCD roles, accountability, and capability

To have strong organization platform to company strategic initiatives

To be a strategic business partner to function

To deliver service excellence to internal and external customers

To rejuvenate team’s passion and energy in achieving company objectives

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2

3

4

The main theme is to solidify role as “strategic business partner”

How can we get there?

5


Further looking into the horizon, change agent’s role is the end goal

Business Partner

Business Business PartnerPartner

ChangeAgent

ChangeChangeAgentAgent

Solutions Development and

Delivery

Solutions Solutions Development and Development and

DeliveryDelivery

Administration and Compliance

Administration and Administration and ComplianceCompliance

High

HighLow Influence with the business

Value to thebusiness

Administrator

Professional

Change Agent

Business Partner

Quick wins Med-term End goal

Currently HCD roles

End-goal we want to be

Intermediate goal we can achieve

Recruiting & HR

Track 1 joris xl