Emerging trends in HR value creation - Society for Human … May/Ulrich... · Emerging trends in HR...

4/22/2016

1

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

2

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

4/22/2016

2


3

Selected Books


4

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

4/22/2016

3


5

Pre test

1. Perspective:Whatisthe“biggestchallenge”inmyjobtoday?

2. Outcomes:Whatarethe“outcomes”ofeffectiveHR?(e.g.,financedeliverseconomicinsights;marketingcustomers;manufacturingqualityproducts,HR…??)

•••

3. Transformation:WhataretherequirementsforeffectiveHRtransformation?

•••


6Question 1HR outside in: Evolution of HR

HR

Evo

luti

on

Time

HR Administrative Utility

HR Strategy

HR Outside/In

HR Functional Expertise

4/22/2016

4


7

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


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

4/22/2016

5


9

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


10

Pre test



•••


•••

4/22/2016

6


11

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


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

4/22/2016

7


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?


14

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? …

4/22/2016

8


15

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


16Question 2:HR value creation: What value does HR create?

Ind

ivid

ual

A

bili

ty


HighTalent

WorkforcePeople


Leaders Leadership

Low

Low High

4/22/2016

9


17

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


18

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)

4/22/2016

10


19

HR value creation: Capability

Ind

ivid

ual

A

bili

ty


HighTalent

WorkforcePeople


Leaders Leadership

Low

Low High


20

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?

4/22/2016

11


21

HR value creation: Capability

Ind

ivid

ual

A

bili

ty


HighTalent

WorkforcePeople


Leaders Leadership

Low

Low High


22

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

4/22/2016

12


23

Pre test



•••


•••


24

4 Phases of HR Transformation

BUSINESSCONTEXT

1

(why)

HRDESIGN

3

(how)

OUTCOMES

2

(what)

HR ACCOUNT-ABILITY

4

(who)

HR ValueProposition

4/22/2016

13


25

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


26

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

4/22/2016

14


27

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

??


28HR Competencies 2016Research team

• Mike Ulrich, Co-Director• David Kryscynski, Co-Director• Dave Ulrich, Principal• Wayne Brockbank, Principal• Jacqueline Slade, Project Manager

4/22/2016

15


29HR Competencies 2016Thanks to Twenty-Two Regional Partners


30

HR professionals: competencies

Strategic enablers

Foundationalenablers

Coredrivers

4/22/2016

16


31

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?


32

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

4/22/2016

17


33

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.

Date post:	11-May-2018
Category:	Documents
Upload:	vannga
View:	220 times
Download:	4 times

Emerging trends in HR value creation - Society for Human … May/Ulrich... · Emerging trends in HR...

Documents