How to Build Trust and

Make HR More Strategic

by Tom CoxCox Business Consulting, Inc.

presented 15-Dec-2010 to PHRMA, the Portland HR Managers' Association

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How I Hope to Earn a Perfect Score from You

What would you need to see, hear, or learn today in order for your presenter to deserve a perfect score, a 10 out of 10?

Make a note of what you need During the talk, check off each one During Q&A, if anything remains, ask for it

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Taking the CEO Perspective

Coach CEOs and business owners, 1:1 or in groups

Since 2009 Tom has hosted the “Tom on Leadership” radio show for CEOs

Internet's premier radio show for CEOs – a Top Five Hit on Google

Counsel people on how to earn CEO's trust by showing them the CEO's perspective

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Should we be trying this?

The discipline I believe so strongly in is H.R., and it’s the last discipline that gets funded. Marketing, manufacturing — all these things are important. But more often than not, the head of H.R. does not have a seat at the table. Big mistake.

– Howard Schultz, chairman, president and C.E.O. of Starbucks

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What Does "Being more Strategic" Mean?

What is the Concept?

What is the Purpose?

What is the Method?

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"Being more Strategic" - the Concept

Mintzberg's Five "P"s of Strategy Plan, Ploy, Pattern, Position, Perspective

HR Desire to Make a Deeper Contribution

"Be Strategic" today means "Contributes Significantly to Business Outcomes at a Deep Level"

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"Being More Strategic"- the Purpose

Cut Costs Grow Revenue Increase Profits

Good CEOs care about taking care of shareholders. Connect everything to that frame of reference.

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Story of $500m Retailer's HR Director

Sits on Strategy Council – and just did a name change on a benefits card

Being "strategic" doesn't mean you give up grunt work

Didn't come up through HRYou have to know the whole business & how it

makes money

Routinely Innovates – “Safeway Strategy”Became Self-Insured: Saved $1m/yrImproved Hiring: Reduced turnover by 68%

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Story of $100m Publisher's HR Director

"Being Strategic" means "contributing at a higher level"

Get there by learning the WHOLE business Ask questions, show interest, learn When you are not selected for the key project

team, ask “why” in a self empowering way

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How to “Become More Strategic” in 5 Easy Pieces – the Method

1. From Firm's Strategic Plan, find Top 4 Issues

2. List all major HR programs (payroll, HRIS, hiring, training, etc.)

3. Chart the Strategic Issues vs. the HR Programs

4. Create an Impact Grid of HR programs

5. Assess, Measure and Build Trust

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“Usage Chart” of Strategic Issues vs. HR Programs

Time/Pay/BenefitsHRIS Hiring ProcessLeader TrainingIssue 1Issue 2Issue 3Issue 4

Examine how each program supports each major strategic issue. Identify “As-is” and “To-be” and the gap.

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Strategic Impact Gridof HR Initiatives

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Example: Three Levels of Involvement for HR

Your firm has had a delay in design, and must lay off some production staff for 90 days.

Compliance: Layoff Paperwork is Right Information: Monitor how employees are

taking the news Strategic Impact: Take responsibility for

morale; Coach senior staff on how to deliver the news and how to respond to the employee reaction

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Role of Trust

Nobody will take you seriously ... until they trust you

Dog Walker vs. Strategic Partner Assess Mistrust Measure Trust Build Trust

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How to Assess Mistrust - 10 Behaviors of Destructive Conflict

Active Destructive: winning at all costs displaying anger demeaning others retaliating intention invention

Passive Destructive: avoiding yielding hiding emotions self-criticizing working around

people

"Becoming a Conflict Competent Leader" by Tim Flanagan and Craig Runde

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How to Measure Trust -4 Elements of the 'ROCC of Trust'

Reliability: “You can count on me to do what I said I would do, or whenever I cannot, I will tell you quickly and help clean up.”

Openness: “You will always know my agenda. I will be honest and vulnerable.”

Competence: “I will demonstrate my competence at tasks I undertake, build my competence, and tell you honestly what I cannot do well.”

Compassion: “I will put your agenda ahead of mine at least some of the time, and demonstrate that with my actions.”

"Trust is Everything" by Aneil and Karen Mishra

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How to Build Trust - 8 Behaviors of Constructive Conflict

Passive Constructive: assuming positive

intention delaying response reflective thinking adapting to multiple

win conditions

Active Constructive: reaching out taking other person's

perspective expressing emotions

responsibly creating solutions

"Becoming a Conflict Competent Leader" by Tim Flanagan and Craig Runde

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Use the Chart and Impact Grid to Leverage your Higher Trust

Where is HR under-performing? Where is HR not contributing strategically? How can we use outside experts better?

Hiring: e.g. Taylor Protocols HRIS: e.g. UltiPro SaaS

Do my C-Suite Partners Agree with my Grid?

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Taking Action Now - 1

“The Church is Near, but the Road is Icy.

The Tavern is Far, but I will Walk Carefully.” – Hungarian Proverb

When you encounter a roadblock, it means at least one of three things is true:

1) It's not that important to you

2) You don't know what to do next

3) You don't know how to do it

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Taking Action Now – 2

Is it important? Is it in your Date Book or Check Book?

Do you know what the next step is? Assess your Strategic Contribution Build Trust

Do you know how to take the next step? 60+ members of the Portland chapter of the

Institute of Management Consultants (IMC) 30 minutes of my time free

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Resources and References 1. NY Times 10-Oct-2010 article interviewing Howard Schultz,

chairman, president and C.E.O. of Starbucks

2. Mintzberg, Henry: "The Strategy Concept I: Five Ps For Strategy" in California Management Review, Fall 1987

3. "Trust is Everything" by Aneil and Karen Mishra

4. "Becoming a Conflict Competent Leader" by Tim Flanagan and Craig Runde

5. "Lean IT - Enabling and Sustaining Your Lean Transformation" (Mike and Steve, SteadyImprovement.com)