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© 2003 SHRM
HR: Leading People, Leading Organizations
““Managing HR Talent in Managing HR Talent in Turbulent Times”Turbulent Times”
David C. Forman, SPHRDavid C. Forman, SPHRSenior Vice PresidentSenior Vice PresidentProfessional and Business DevelopmentProfessional and Business DevelopmentSociety for Human Resource ManagementSociety for Human Resource Management
© 2003 SHRM
HR: Leading People, Leading Organizations
DefinitionsDefinitions
““Turbulent”(adj.): Turbulent”(adj.): movement or movement or
agitation.agitation.
““Turbulence”(noun): Turbulence”(noun): confusion.confusion.
© 2003 SHRM
HR: Leading People, Leading Organizations
““The Future Ain’t What It The Future Ain’t What It
Used To Be !!!!Used To Be !!!!
Source: Yogi BeraSource: Yogi Bera
© 2003 SHRM
HR: Leading People, Leading Organizations
““The Future arrived when we The Future arrived when we
weren’t looking, so we’re still weren’t looking, so we’re still
dealing with issues, ideas and dealing with issues, ideas and
programs that don’t fit the programs that don’t fit the
world’s new realities.”world’s new realities.”
Source: Peter DruckerSource: Peter Drucker
© 2003 SHRM
HR: Leading People, Leading Organizations
What is the Future of the Human What is the Future of the Human
Resources Profession ?Resources Profession ?
© 2003 SHRM
HR: Leading People, Leading Organizations
Which of These is True?Which of These is True?
“The next ten years will be the HR decade.”
Professor David Ulrich“Human Resource Champions”
“I am describing your human resources department, and have a modest proposal: Why not blow it up?”
Thomas A. Stewart“Fortune” Magazine
© 2003 SHRM
HR: Leading People, Leading Organizations
General General ElectricElectric
General ElectricGeneral ElectricAnnouncement to employees of the “Human Resource Leadership Program”Announcement to employees of the “Human Resource Leadership Program”
HRLP (Human Resources Leadership Program)HRLP (Human Resources Leadership Program)HRLP will prepare you for a dynamic role in the human dimension of GE. By helping HRLP will prepare you for a dynamic role in the human dimension of GE. By helping
to develop our future leadership, your work will influence the direction of our company.to develop our future leadership, your work will influence the direction of our company.
Program SummaryProgram SummaryA 2-year entry-level program consisting of 3 challenging and in-depth 8-month A 2-year entry-level program consisting of 3 challenging and in-depth 8-month
assignmentsassignmentsBroad business skills developed via hands-on experience in two HR assignments, Broad business skills developed via hands-on experience in two HR assignments,
plus a third assignment in an area such as finance, quality or business developmentplus a third assignment in an area such as finance, quality or business developmentFormal classroom training in advanced human resources techniques and business Formal classroom training in advanced human resources techniques and business
conceptsconceptsExtensive contract with peers and senior business leaders from around the wordExtensive contract with peers and senior business leaders from around the wordExpansion of your knowledge base, critical problem-solving skills and network of Expansion of your knowledge base, critical problem-solving skills and network of
valuable contactsvaluable contacts
Candidate CriteriaCandidate CriteriaDemonstrated academic excellence, business acumen and leadership abilityDemonstrated academic excellence, business acumen and leadership abilitySelf-confidence, strong analytic problem-solving skills and exceptional Self-confidence, strong analytic problem-solving skills and exceptional
communication skillscommunication skillsMBA/MA in Business or an HR-related discipline plus several years work experience MBA/MA in Business or an HR-related discipline plus several years work experience
preferredpreferredGeographic flexibility and global mindset; able to operate across culturesGeographic flexibility and global mindset; able to operate across cultures
© 2003 SHRM
HR: Leading People, Leading Organizations
GE’s HR-Development OpportunitiesGE’s HR-Development Opportunities• Employee-relations problem-solving assignmentEmployee-relations problem-solving assignment• HR-generalist assignmentHR-generalist assignment• Technical-specialization assignmentTechnical-specialization assignment• Organization-effectiveness intervention experienceOrganization-effectiveness intervention experience• Process-consulting experienceProcess-consulting experience• Community-relationship experienceCommunity-relationship experience• Stretch job assignmentStretch job assignment• Exposure to global issuesExposure to global issues• Staff assignmentStaff assignment• Cross-functional experienceCross-functional experience• Fix-it assignmentFix-it assignment• Start-up assignmentStart-up assignment• Large-scale change effortLarge-scale change effort• Organization-structuring assignmentOrganization-structuring assignment• Corporate assignmentCorporate assignment• HR functional-leadership assignmentHR functional-leadership assignment• Business-team partnership experienceBusiness-team partnership experience• Business-leaders support assignmentBusiness-leaders support assignment• Exposure to role modelsExposure to role models• Extended professional networkExtended professional network
© 2003 SHRM
HR: Leading People, Leading Organizations
• “This business game is all about winning. The team that wins is the team with the best players. Your job is to field the best players.”
• Jack Welch, Former CEO General Electric Corporation
© 2003 SHRM
HR: Leading People, Leading Organizations
Which of These is True?Which of These is True?
“The next ten years will be the HR decade.”
Professor David Ulrich“Human Resource Champions”
“I am describing your human resources department, and have a modest proposal: Why not blow it up?”
Thomas A. Stewart“Fortune” Magazine
© 2003 SHRM
HR: Leading People, Leading Organizations
The Container Store
© 2003 SHRM
HR: Leading People, Leading Organizations
The Container Store
The Container Store has NO HR Officer or Department
!!!!!!!!!
© 2003 SHRM
HR: Leading People, Leading Organizations
Which of These is True?Which of These is True?
“The next ten years will be the HR decade.”
Professor David Ulrich“Human Resource Champions”
“I am describing your human resources department, and have a modest proposal: Why not blow it up?”
Thomas A. Stewart“Fortune” Magazine
HR: Leading People, Leading Organizations
The Essential Question???The Essential Question???
How can HR professionals
produce significant value
and deliver results???
HR: Leading People, Leading Organizations
BecomeBecome aa StrategicStrategic Business PartnerBusiness Partner
© 2003 SHRM
HR: Leading People, Leading Organizations
ON BEING A “STRATEGIC PARTNER”ON BEING A “STRATEGIC PARTNER”
Only 34% of HR Executive Are
Viewed As “Strategic Partners”
SHRM/BSCol Survey, 2002
© 2003 SHRM
HR: Leading People, Leading Organizations
Business Environment:
Workforce issues are at the top of the agenda for CEOs
Increasing recognition among business leaders that people represent the only real
competitive advantage a company can sustain
© 2003 SHRM
HR: Leading People, Leading Organizations
Where is HR Going in These Turbulent Times ?
• There can be an EXCITING future for the profession.
• But human resource professionals have to be prepared, willing and able to embrace that future!
© 2003 SHRM
HR: Leading People, Leading Organizations
What Are The Current Business What Are The Current Business
IssuesIssues??
What are HR Professionals Saying?What are HR Professionals Saying?
What are CEO’s Saying?What are CEO’s Saying?
© 2003 SHRM
HR: Leading People, Leading Organizations
The Top Seven People-Related HR Issues
1. Retaining Talent
2. Attracting Talent with Critical Skills
3. Improving Workplace Performance
4. Gaining Control of Health Care Costs
5. Using the Web Effectively for Information/Service Delivery
6. Creating “People Measures” for a Balanced Scorecard
7. Building New Workforce Skills for the Next Round of Growth
SOURCE: Towers Perrin interview of HR Professionals
© 2003 SHRM
HR: Leading People, Leading Organizations
TOP CEO Issues: Customer Loyalty/Retention
Engaging Employees in Company Vision/Values
Competing for talent
Shortage of Key Skills
Reducing Costs
Increasing Flexibility/Speed
Industry Consolidation
TOP CEO Issues HR’s Work
Customer Loyalty/Retention Relationship: Employee/Brand
Engaging Employees in Company Vision/Values
Competing for talent Talent Management
Shortage of Key Skills
Reducing Costs Reducing Costs
Increasing Flexibility/Speed Applying New Technology
Industry Consolidation Mergers & Acquisitions--Reconfiguring Business
© 2003 SHRM
HR: Leading People, Leading Organizations
HR Has Key Opportunities Greatest opportunities for impact:
1. Strategic business partner: part of the business
2. Applying new technology
3. Achieving competitive advantage through people
4. Mergers & Acquisition / business reconfiguration
5. Reducing costs / HR metrics
© 2003 SHRM
HR: Leading People, Leading Organizations
Key HR TransformationsKey HR Transformations
Developing a New vision and Theory of the Developing a New vision and Theory of the CaseCase
Shifting to Consulting and Client Service Shifting to Consulting and Client Service OrientationOrientation
Applying Re-Engineering and Work Re-Design Applying Re-Engineering and Work Re-Design Principles to the HR Function and Its RolesPrinciples to the HR Function and Its Roles
Producing Operational ValueProducing Operational Value
Source: SHRM FoundationSource: SHRM Foundation
HR TransitionHR TransitionFunctional Specialist to Strategic Business PartnerFunctional Specialist to Strategic Business Partner
Nature of HR programs and function
Nature of HR strategy and policy
Organization of HR function
Profile of HR professionals
ResponsiveOperationalInternal
HR department full responsibility
Employee advocateFunctional structureReporting to staff
Career in HRSpecialistLack of financial skillsCurrent focusMonolingualNational perspective
Functional SpecialistProactiveStrategicSocietal
HR and line management share responsibility
Business partnerFlexible structureReporting to line
RotationGeneralistFinancial expertiseFocus on futureMultilingualGlobal perspective
Business Partner
26
HR: Leading People, Leading Organizations
New Competencies for Strategic Human Resource Leaders
HR: Leading People, Leading Organizations
Framework For HR Competencies
Business ResultsActivitiesCompetencies
© 2003 SHRM
HR: Leading People, Leading Organizations
HR Competency DomainsHR Competency Domains
• Strategic Contribution
• Personal Credibility
• HR Delivery
• Business Knowledge
• HR Technology Source: University of Michigan Business SchoolSource: University of Michigan Business School
© 2003 SHRM
HR: Leading People, Leading Organizations
HR Competency DomainsHR Competency Domains
• Strategic Contribution 43%43%
• Personal Credibility 23%23%
• HR Delivery 18%18%
• Business Knowledge 11%11%
• HR Technology 5%5%
© 2003 SHRM
HR: Leading People, Leading Organizations
A New Role and a New Title for HR Professionals
© 2003 SHRM
HR: Leading People, Leading Organizations
Sources of Competitive AdvantageSources of Competitive Advantage
Economic/Financial
Capability
Strategic/MarketingCapability
TechnologicalCapability
“Organizational Capability”
David Ulrich and Dale Lake
© 2003 SHRM
HR: Leading People, Leading Organizations
OrganizationalCapability
(the New Role for HR)
Sources of Competitive AdvantageSources of Competitive Advantage
Economic/Financial
Capability
Strategic/MarketingCapability
TechnologicalCapability
“Organizational Capability”
David Ulrich and Dale Lake
© 2003 SHRM
HR: Leading People, Leading Organizations
Organiztional Capability
• “ Organizational Capability is a business’s ability to establish internal structures and processes that influence its members to create organization-specific competencies and thus enable the business to adapt to changing customer and strategic needs”.
D. Ulrich & D. Lake (1990). Organizational Capability”. John Wiley
© 2003 SHRM
HR: Leading People, Leading Organizations
The New HR Title
Chief Officer(Director)
of“Organizational Capability”
© 2003 SHRM
HR: Leading People, Leading Organizations
1. To create programs of recruitment, development and retention of world class talent and leaders to support the growth of the organization.
The New HR Job Description
© 2003 SHRM
HR: Leading People, Leading Organizations
1. To create programs of recruitment, development and retention of world class talent and leaders to support the growth of the organization.
2. To champion the nurturing of a culture, aligned with organizational strategy, to bring about organizational commitment to ethical practices, lifelong learning and a sense of responsibility to all stakeholders.
The New HR Job Description
© 2003 SHRM
HR: Leading People, Leading Organizations
1. To create programs of recruitment, development and retention of world class talent and leaders to support the growth of the organization.
2. To champion the nurturing of a culture, aligned with organizational strategy, to bring about organizational commitment to ethical practices, lifelong learning and a sense of responsibility to all stakeholders.
3. To create programs that will continuously raise the competencies and capabilities of the members of the organization to assure achievement of organizational objectives.
The New HR Job Description
© 2003 SHRM
HR: Leading People, Leading Organizations
Wall Street JournalWall Street JournalVice President, Human ResourcesVice President, Human Resources
Global Fortune 500 Company of 30,000 employees, the leader in its
field, is seeking a Corporate Vice President of Human Resources with a
strong background and focus in organization effectiveness, development and
training. “Partnering” with corporate senior management and business sector
heads to bring forth a new business culture, the VP will establish HR as a
strategically focused internal consulting arm to the company. The successful
candidate will have a businessperson’s perspective and a demonstrated track
record in change management, re-engineering, leadership development and
training. Respond to: M-67, P.O. Box 17182, Philadelphia, PA 19105 EOE.
© 2003 SHRM
HR: Leading People, Leading Organizations
• “Change is the law of life, and those who look only to the past or present are certain to miss the future.”
• Source: John F. Kennedy
© 2003 SHRM
HR: Leading People, Leading Organizations
Thank You
© 2003 SHRM
HR: Leading People, Leading Organizations
Questions Please???????????????????
© 2003 SHRM
HR: Leading People, Leading Organizations
Suggested ReadingsSuggested ReadingsDave Ulrich. Human Resource Champions, Harvard Business School Press.
Jeffrey A. Mello. Strategic Human Resource Management, South-Western.
Dave Ulrich & Dale Lake. Organizational Capability. John Wiley and Sons,
Becker, Huselid and Ulrich. The HR Scorecard, Harvard Business School
Press
Jim Collins. Good to Great. HarperCollins Publishers, Inc.
© 2003 SHRM
HR: Leading People, Leading Organizations
Service
Advice
Strategy
Strategy
Advice
ServiceITSelf-
Service
OutSource
Shared Services
Old
NewNew
Source: Prof. Ed Lawler, speaking at SHRM Foundation Thought Leader Conference, August, 2002
© 2003 SHRM
HR: Leading People, Leading Organizations
Topic Outsource
completely
Outsource
partially
Completely
in-house
401(k) Administration 33.2% 51.1% 15.7%
Employee Assistance/Counseling 64.2% 19.5% 16.3%
Retirement Planning Help 24.9% 49.4% 25.7%
Pension Administration 27.5% 45.9% 26.6%
Temporary Staffing 27.7% 44.0% 28.3%
Background Checks 40.8% 26.6% 32.5%
Training and Management Development Programs
5.4% 51.1% 43.5%
Executive Development and Coaching 7.6% 46.6% 45.9%
Health Care Benefits Administration 13.7% 39.7% 46.6%
Employee benefit administration 7.4% 41.5% 51.1%Note: Of respondents whose organizations offer that particular function.
SOURCE: SHRM Weekly Online Poll – July 2003
What HR Functions, If Any, Does Your Organization Outsource? (Please Select All That Apply.)
© 2003 SHRM
HR: Leading People, Leading Organizations
Topic Outsource
completely
Outsource
partially
Completely
in-house
Payroll 8.5% 40.1% 51.4%
Risk Management 8.5% 37.6% 53.9%
Executive Staffing 4.8% 39.3% 55.9%
Employee Relocation 18.5% 22.0% 59.5%
HRIS Selection, Training and Implementation
4.2% 35.7% 60.1%
Recruitment 0.6% 31.3% 68.2%
Executive Compensation and Incentive Plans
1.2% 16.1% 82.7%
Policy Writing 1.4% 13.2% 85.4%
Administration of Compensation and Incentive Plans
1.5% 12.6% 85.9%
Wage and Salary Administration 2.3% 8.6% 89.1%Note: Of respondents whose organizations offer that particular function.
SOURCE: SHRM Weekly Online Poll – July 2003
What HR Functions, If Any, Does Your Organization Outsource? (Please Select All That Apply.)
© 2003 SHRM
HR: Leading People, Leading Organizations
Why Does Your Organization Outsource HR Functions? (Please Select All That Apply.)
Choice Count Percent of Sample
Save Money/Reduce Operating Costs 102 26.0%
Allow Our HR Employees to Focus More on Strategy
89 22.6%
Control Legal Risk/Improve Compliance 85 21.6%
Improve Accuracy/Flexibility/Responsiveness 71 18.1%
Take Advantage of Technological Advances Without Capital Outlay
70 17.8%
Lack Expertise In-House 69 17.6%
Offer Services We Otherwise Could Not 66 16.8%
Allow the Company to Focus on its Core Business 57 14.5%
Other 19 4.8%
We Do Not Currently Outsource Any HR Functions 186 47.3%