Two-Day National Conference on Building Futuristic Organizations:

Developing Sustainable Competitive Strategies

March 8-9, 2013Coimbatore

The forum expects to answer key questions including: • Are organizations of the future going to be different than the

organizations of the past and the present? If different, in what ways are they going to be different? What will be the characteristics of such organizations?

• Future organisations are bound to face challenges including Uncertainty, Unpredictability, Ambiguity and Change: in such a scenario what would be the appropriate strategies for adaptive sustainability?

• What appropriate competitive strategies can be developed and recommended for those specific characteristics?

• How can future organisations be sustainable in terms of service to society, environmental protection, long term vision, products and services, concern for people, thus addressing the triple bottom line - profit, people and planet?

10 Ways the Next 10 Years Are Going To Be Mind-Blowing• Bio Technology - Bionic Hand controlled by brain signals

• Architecture - Revolving Tower in Dubai

• Computer Speed, Size and Usability - chips will be assembled using individual atoms or molecules

• Cars and Fuel - electric

• How We Interact With the World - Goggles by Google

• Energy - Solar

• Health - custom-made organs

• Success and Popularity Accessibility - internet is the perfect tool for capitalism, entrepreneurship, and dreaming

• Robots - !!!• Clothing - would allow people to generate their own electrical current while

walking

10 Great Career Fields for the Future

Medical FieldNurse Anesthetists, Nurse Practitioners, Physician Assistants

Technology SectorSoftware Architects, Systems Engineers, Software Engineers, IT Analysts

Financial ServicesAccountants, Actuaries, Financial Advisors

Education ArenaCollege Professors, Elementary School Teachers, High School Teachers

Technical JobsPhysical Therapist Assistants, Dental Hygienists, Veterinary Technicians

10 Great Career Fields for the Future

Business Services JobsEnvironment Health Specialists, Construction Estimator

Sales JobsSales Managers, Sales Executive, Senior Sales Professional

Consulting JobsManagement Consultants, Healthcare Consultants

Engineering JobsProject Engineer, Civil Engineer, Structural Engineer, Environmental Engineer, Biomedical Engineer

Middle Management JobsResearch and Development Manager, Product Manager, Risk Management Manager

Strategies for developing

Human Capital

Human capital• Human capital is the stock of

competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform work so as to produce economic value.

• Human Capital Development is a must need effort that must be taken forward by organizations to increase the technical skills, creativity and innovation to drive the knowledge-based economy.

• Few Demands that today's workforce face –– Acquiring and retaining new customers– Generating new ideas– Improving productivity

Human Capital Uncertainties

Adoption of online HR services

Competition for talent

Organizational priorities

Regulatory constraints in HR management

Dominant type of organizational structure

Innovation and change

Regional

Heavy

Low

Cost cutting

Traditional and

hierarchical

Top - Down

Global

Light

High

Growth

Networked or Virtual

Bottom - Up

Human capital related critical uncertainties

Human capital strategy

• It is a must need today for Executives to pursue a more comprehensive and integrated human capital strategy that includes

– Talent Management– Leadership Qualities– Cultural Values– Organization Components

This helps multiply the value of talent and help create an enterprise that is able to execute business strategy and adapt to a changing market.

“ Those who can effectively translate their business strategy into an actionable human capital strategy can drive a new kind of competitive advantage—one

extremely difficult for others to imitate. “

Linking business strategy to human capital requirement

HR is responsible for acquiring, developing and deploying the people needed for an successful organization but yet many HR Departments struggle to have a deep enough understanding on how to translate the business goals into specific workforce and organization needs.

WHAT IS MISSING ???1.A strong program2.An approach led from

the top3.Visualize human capital

dimension of a business at the strategic level

Devising a Human capital strategy will link business strategy to HR strategy ,Hence bridging the gap

BUSINESS STRATEGY

HUMAN CAPITAL STRATEGY

HR STRATEGY

The business strategy defines the direction, positioning, scope , objective and competitive differentiation

Human capital strategy defines the talent, leadership , culture and organization to execute the business strategy

The HR strategy articulates the strategic direction and imperatives of the HR organization and builds out capabilities required to align to the human capital strategy

SHAP

ESSH

APES

ENAB

LES

ENAB

LES

Advantages of an effectives human capital strategy –1. Helps the organization to put in place the right leaders to

source, develop and direct the right workforce talent, supported by the right culture, organization and operating model

2. Working in the human capital dimension underpins many of the company’s most important decisions about where and how to compete

3. Helps support the organization as it balances short-term decisions with longer-term imperatives.

4. supports the organization in meeting today’s urgent needs while also helping it become agile enough to reposition itself for ongoing market competitiveness and growth

“ For a human capital strategy to be truly robust, it must not only consider the strategy of today but also its potential evolution in the future. “

Creating and implementing a human capital strategy• Human capital strategy work under four main streams –

1.Talent Management

2.Leadership Qualities

3.Cultural Values

4.Organization Component

Competency Planning Gap Analysis

Learning PlanTraining Sessions

Action and Reflective learning

Self-Directed Learning

Material Symbols

LanguageRitualsStories

Operating ModelOrganization Design

Talent Management

• In order to execute the business strategy to its best we need.– Competency assessment– Workforce planning– Gap Analysis

If properly designed and executed, programs within the talent work stream of the human capital, strategy can significantly contribute to a company’s ability to attain its business goals, and to attract, motivate and retain the right people.

TALENT

Gap analysi

s

Workforce

planning

Competency

assessment

First step – Competency assessment

Review organizations business strategy and determine the capabilities and competencies required by the workforce

Understand the impact that the business strategy will have on the workforce.

Innovate new ideas and approaches towards recruiting and hiring employees.

Second step - Workforce planning• Determine the workforce supply that the organization needs•Determine the no. of employees required for each type of Job (now and also for the future)

Third step – Gap Analysis-analyze any potential gap between existing workforce competencies and those needed to execute the business strategy going forward-Provide training to the employees who have little variance in competencies in order to fill in the gap.-Try repositioning workforce to areas in which their competencies match the requirement of the job.-Terminate dead woods who prevent the organization from moving towards its business strategy.

Talent Management

Leadership Qualities• Organizations need leaders who can –

– rally the workforce when there is a challenge, – Confront them when they are mired in the status quo, – calm them when the seas are rough, and – propel them into action when there is a crisis.

• The leadership development aspects of an organization’s human capital strategy focus on several key questions:– What is the specific value add beyond their official job titles?– What attributes, capabilities and behaviors are expected from

future leaders?– How can organizations use leadership development as a

competitive advantage?

“A leader is someone whom others will follow to a place they would normally not go on their own".

Once these key questions are answered we must put in place a leadership development program that is closely tied to the needs of the business strategy and the shifting marketplace.

Training Sessions

Leader Learning

plan

Self directed Learning

Action & Reflective Learning

Using the needs and assessment results , facilitate a Leadership learning program

Facilitation of self-directed learning projects to build the competencies most needed by the leader.projects may include case studies, shadowing, executive interviews, reading, specific skill development, behaviour change activities, etc.

Training sessions interspersed throughout the program in addition to self-directed learning, so as to guide the leadership development process.

Conduct of orientation sessions for the leadership teamSupport the team to research solutions to the challenges and enable the team to report its results to the senior management during the end of the program.Self awareness journal.share the findings with the leadership team.

The leaderships development program must focus on the following areas –

Culture Values• The basic pattern of shared assumptions , values

and beliefs considered to be correct way of thinking about and acting on problems and opportunities facing the organizations.

• It is the philosophy that guides the organization’s policy towards employees and customers.

• Today's senior Leaders believe – • business strategies stand little chance of being

adopted and executed if the current culture of their company impedes the ability to accommodate change and support the business vision.

“ Clarifying the value system and breathing life into it are the greatest contributions a leader can make. Moreover, that's what the top people in excellent

companies seem to worry about most “ – Peters and Waterman

Elements of organization culture

Individual initiative

Risk tolerance

Communication pattern

integration

Management support

control

identity

Reward system

Conflict tolerance

How to create , sustain and transmit culture ??- How it begins - founders!!

- How to keep it alive – Selection practices, Top Management and socializing

- How do employees learn the culture - Stories , rituals, language, material symbols

If Aligned –Executives must help reinforce those attributes that support the execution of the business strategy

If Not Aligned –Specific programs must be put in place to influence the culture and push it in the right direction.

Cultural alignment with business strategy

Factors Influencing cultureFactors that support Changes in culture

Factors that are against changes in culture

Foreign competition Employees become committed to them

Changes in Govt. regulations Written statements about mission and philosophy

Rapid economic shifts Design of physical spaces and building

Change in stories , rituals, material symbols, language

Dominant leadership pattern

New technologies Past selection practices

Organizations formal structure

Popular stories about key people and event

An ideal organization culture

1.Equal opportunities for employees 2.No discrimination in terms of reward or

punishment3.Understanding the individual as a person4.Standing by employees in time of crisis5.Not bending organizational rules but allowing

room for flexibility and humaneness.6.Allowing true delegation of responsibility or

authority7.Changing roles and responsibilities

appropriately.

Organization Components

Organization

Organization Design+

Operating Model

Effects

Effects

Effective job Performance

Employee sourcing

EffectsLeadership Development

Effects

Culture

Organization Design

• A formal, guided process for integrating the people, information and technology of an organization.

• Used to match the form of the organization as closely as possible to the purpose(s) the organization seeks to achieve

• Through the design process, organizations act to improve the probability that the collective efforts of members will be successful.

Organization structures• Hierarchical Structure Vs Organic Structure

Characteristics Hierarchical structure Organic structure

Complexity High – with lots of horizontal separation into functions, departments and divisions

Usually lower – less differentiation or functional separation

Formality High – lots of well defined lines of control and responsibility

Lower – no real hierarchy and less formal division of responsibilities

Participation Low – employees lower down the organization have little involvement with decision making

Higher participation – lower level employees have more influence on decision makers

communication Downward – information starts at the top and trickles down to employees

Lateral, upward, and downward communication – information flows through the organization with fewer barriers

It's worth saying that one type of structure is not intrinsically better than another. Rather, it's important to make sure that the organization design is fit for organization's purpose and for the people within it.

Organization structure

Hierarchical structure

Organic structure

ORGANIZATION STRUCTURE

Matrix structure

Simple structure

Functional

structure

Divisional structure

Network structure

functions (accounting, marketing, HR etc) are quite separate; each led by a senior `executive who reports to the CEO.the company is organized by office or customer location. Each division is autonomous and has a divisional manager who reports to the company CEO.

Often found in small businesses, the simple organization structure is flat. It may have only two or three levels; employees tend to work as a large team with everyone reporting to one person.people typically have two or more lines of report. For example, a matrix organization may combine both functional and divisional lines of responsibilityOften known as a lean structure, this type of organization has central, core functions that operate the strategic business. It outsources or subcontracts non-core functions

Key points and Advantages • Key points in design of Organization structure –

– Strategy – The organization design must support the strategy.

– Size – The design must take into account the size of the organization.

– Environment – If the market environment one works in (customers, suppliers, regulators, etc.) is unpredictable or volatile, then the organization needs to be flexible enough to react to this.

– Controls – What level of control is right for the business? – Incentives – Incentives and rewards must be aligned with

the business's strategy and purpose. • Advantages –

– Streamline Operation– Improve Decision Making– Operate Multiple Locations– Improve Employee Performance– Focus on Customer Service &Sales

Operating Model – Bridge between business strategy and organization DesignThe operating model shows how the strategy and structure of the organization is executed. The operating model must be purposefully reshaped in order for an organization to be effective.

Strategy and heritage Operating model Detailed organization design

-Where to play, including category brand and geographic priorities-How to win, including repeatable routines and non-negotiabes-Company culture and values to be preserved and cultivated

- Where and how the most critical work is done

--Detailed structure and specific decision roles-Company – wide clarity on priorities and principles-Processes, information flows, technology, tools.-Detailed metrics and feedback loops-Talent system and incentives.-Cultural reinforcements

Components of Operating Models

Programs and Services

What programs are common and unique to units?How is client contact conducted?What is the standard of service levels?

Organization structure

•Organization units and boundaries•Matrix groups and alignments (functional, geographic)•Levels and spans

Roles and Boundaries

What are the boundaries of each unit and what are the shared tasks?What information should be available across boundaries?Who has responsibility for various tasks?Are there any special boundary spanning roles?

Decision Rights

•What are the most important decisions and how will they be made?•What are the roles in the decision-making process? (e.g., inform, consult, approve, etc.)•How will decisions be evaluated?

Meeting Schedule and Design

•What people and topics should be included in regular meetings?•What are the roles in meetings?•What general norms will be followed to make meetings effective?

Goal Setting and Measurement

•What are the shared measures for common goals?•How are individual and team goals (levels) set?•What benchmarks will be used?

Operating Model

Conclusion• Today, there has been a drastic difference in the focus

of professionals to train and retrain their skill-set through higher education. 

• In fact, when the going gets rough, it's time for business to train and develop their human resource capital, so that once the darker nights are over, the sunrise is glorious.

• All this said, The competition in every industry is shifting in a very drastic manner, Will Organizations be able to innovate and execute strategies that can catch up to the shift in the marketplace?? The answer to that question will solely depend on the organizations investment towards human capital assets. Sourcing and retaining top talents in the exact needful numbers and in the exact needful place in our organization will be the key to the equation. Along with this equally important are the leadership quality, cultural characteristics and organization structure that would enable our workforce talent to help our company as a whole to achieve high performance