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The New Hr & Strategic Impact
- 1. THE NEW HUMANRESOURCES: HAVING MORE STRATEGIC IMPACT Sal LoDico, Chief People Officer Corporate Synergies
- 2. Outline: TheNew HR What the New HR is & what is it not Evolution of HR HR as a Key Contributor, including its: ▪ Key Roles ▪ Critical Competencies & Attributes The New HR’s ▪ Barrier ▪ Must Do’s ▪ Measures of Effectiveness Your New HR Readiness Level
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- 4. HR’s MULTIPLE HATSOrganizational Development Culture Organizational structure Identification & development of “rising stars” Training programs Succession planning Adviser to senior management
- 5. HR’s MULTIPLE HATSBenefits Management Plan design Cost control Day-to-day administration Example = employee questions, issues & problems Example = Bill reconciliation Open enrollment
- 6. HR’s MULTIPLE HATSEmployee Relations Fun & fulfilling work environment Work-life balance issues, such as: Tele-working Flexible hours Fair treatment Absence of discrimination & harassment Presence of dignity & respect Employee surveys & resultant action plans
- 7. HR’s MULTIPLE HATSPerformance & Compensation Management Job descriptions Salary grades & ranges Individual performance plans to support achievement of company objectives Performance appraisals Salary reviews Incentive compensation plans
- 8. HR’s MULTIPLE HATSRecruitment & Retention Being ”employer of choice”—or some variation Internal job posting process Transfers & promotions On boarding/orientation of new employees Employee retention
- 9. HR’s MULTIPLE HATSHR Administration HR policies & processes HR program development & management Recordkeeping HRIS
- 10. HR’s MULTIPLE HATSCommon threads : Cost Communications Compliance
- 11. EVOLUTION OF HUMAN RESOURCES
- 12. Changing From: TacticalHR knowledge Limited metrics To: Strategic Business knowledge Metrics-oriented
- 13. Evolution of HR’sValue Proposition Value proposition is “good service at reasonable cost” Value proposition is “excellent service at best cost” Value proposition is “provides organization with a competitive advantage through its people” The New HR: True Business Partner HR in Transition The Old HR
- 14. HR as aBusiness Partner Model* *Source: David Ulrich, Renowned HR Expert Personal Credibility Business Knowledge HR Technology HR Delivery Strategic Contribution
- 15. Market Responsiveness (Speed& Flexibility) Value (Quality & Cost) Product or Service Differentiation Challenges of Customer Expectations Customers
- 16. Connecting the Dotsbetween the Business & HR Business Strategy HR Strategy & Plan HR Systems HR Metrics HR Organization HR Capabilities What are our business goals? What people outcomes must be achieved? What will HR do to enable achieving of people outcomes? How will we measure progress and achievement? What is the best way for HR to deploy its resources? What capabilities does HR need to achieve our people strategy?
- 17. Connecting the dotsinvolves: Development of consistent, aligned collection of practices, programs & policies Integration of all HR strategy & systems within a larger framework Why? To facilitate organization’s: Fulfilling its Mission & Vision Achieving its Strategic objectives
- 18. Business Success Successoccurs when…. Business Strategy & Objectives HR Strategy & Objectives Success
- 19. Efforts Undertaken toTransform HR Process Improvement HR Self-Service Upgraded HRIS HR Benchmarking Reorganization//Downsizing Shared-Services Environment Six Sigma/TQM HR Outsourcing
- 20. “ People areour most important resource” Cliché or actually practiced?
- 21. What Do YouThink This Most Important Resource Wants? Competitive pay & benefits Fulfilling, empowering work environment Fun environment Opportunities for professional development & career advancement Work-life balance
- 22. HR AS A KEY CONTRIBUTOR
- 23. Business person withHR expertise Innovator Collaborator Cultural “evangelist” Change agent Trusted adviser Key HR Leader Roles
- 24. Examples of Beinga Key Contributor Organizational transformation Identification of CEO’s successor & creation of Office of President Search for & negotiation of purchase of new corporate headquarters Lean manufacturing & gain sharing VP, Finance role
- 25. Key HR Competencies& Attributes What do you think they are?
- 26. Key HR Competencies& Attributes Personal credibility & integrity Business acumen (including “mini-CFO”) Vision & leadership Innovative & strategic thinking Tactical execution skills Relationship skills Communications Savvy about technology Consultative & collaborative skills HR subject matter expertise
- 27. Why a “Mini-CFO”?Biggest HR Concerns* % OF HR ISSUE PROFESSIONALS Rising cost of benefits 63% Retention 62% Recruiting 54% *% who identified issue as being one about which they are “most concerned” according to Workforce Management survey
- 28. Why a ‘Mini-CFO”? Top Benefits Issues * Escalation/Control of Benefit Costs Employee Communications Employee Record Keeping and Administration Premium Reconciliation/Claims Issues Compliance : COBRA, ERISA, FMLA & HIPPA *According to HR Magazine
- 29. The New HR’sView Recognizes that employees do have value
- 30. The New HR’sView Employees are human assets that increase in value to the organization and in the marketplace
- 31. The New HR’sView Employees are a valuable source of sustainable competitive advantage.
- 32. Barriers to theNew HR Short term mentality/focus on current performance HR’s shortcomings in 10 critical competencies/attributes referred to earlier Difficulty in quantifying many HR outcomes Organizational readiness
- 33. The New HR’s“must do’s”: Shift focus from activity to adding value Be able to demonstrate, in quantifiable terms, that it is adding value Accurately anticipate (or at least recognize) & plan for changes in the business landscape Manage Human Resources like a business * * More to follow
- 34. The New HR’s“must do’s”: Create the right organizational culture * Build an infrastructure Have the right solution partners * * More to follow
- 35. Creating the Right Organizational Culture
- 36. Organizational Culture: Definition: Norms, values & beliefs Way of thinking, acting & conducting business within an organization
- 37. Organizational Culture Is"passed along" to new members Shapes an individual’s views of the organization
- 38. Organizational Culture Determineshow members relate to one another Constitutes a collective perspective of individuals within organization
- 39. Is embedded andis transmitted within organization Organizational Culture
- 40. Organizational Culture: InternallyShapes behavior Promotes cooperation & commitment Guides decision-making Allows anticipation of actions of others Creates sense of identity for individuals
- 41. Organizational Culture: ExternallyInfluences how organization meets goals and deals with customers/clients Creates perceptions of organization by those outside organization
- 42. The Health ofan Organization’s Culture An unhealthy culture can drive the organization in the wrong direction and make it dysfunctional. A healthy culture helps the organization to be successful.
- 43. Having the RightSolutions Partner: Example: Healthcare Benefits
- 44. Employers Need aBenefits Solutions Partner Who Can: Help define desired “future state” Conduct in depth analysis & benchmarking studies, including claims analysis Do contribution modeling Provide innovative strategies & solutions related to: Plan design Cost sharing Funding alternatives
- 45. Employers Need aBenefits Solutions Partner Who Can: Negotiate “best deal” Assist with implementation, including extensive employee communications Provide ongoing support services, including: Ensuring regulatory compliance Having contact center where HR questions & employee questions & problems get resolved fast
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- 47. To Manage HRLike a Business, HR Officers Need to… Provide leadership and vision Be business people, including financial skill Create a compelling “people business” strategy that is fully aligned with overall business strategy
- 48. To Manage HRLike a Business, HR Officers Need to… Deploy HR strategy and metrics Have an effective HR operating model
- 49. 10 Common Measuresof HR Effectiveness* *Jac Fitz-enz, Founder of Saratoga Institute 10. Healthcare costs per employee 9. Pay & benefits as % of Operating Expenses 8. Cost per hire 7. Return on investment for training 6. Turnover rate
- 50. 10 Common Measuresof HR Effectiveness 5. Turnover cost 4. Time to fill jobs 3. Return on human capital investment ▪ Profits ÷ Cost of Pay + Benefits 2. Human value added ▪ Profits ÷ # of FTEs 1. Whatever is most important to your boss
- 51. Metrics Reminder Metricsshould be “SMART”: S pecific M easurable A chievable R elevant T ime bound
- 52. SUMMARY OF SHRM FINDINGS
- 53. Importance of HRStrategy to Overall Company Success
- 54. Importance of SuccessfulDelivery of HR Services to Company Success
- 55. Importance of EmployeeAlignment to Organization's Business Goals
- 56. HR: As Perceivedby Executives, Senior Managers & HR 82 54 55 5. Serve as trusted advisor and key player 88 57 51 4. Identify future leaders 90 73 62 3. Ensure individuals understand their role & contribution to organization 92 68 64 2. Help organization effectively use resources & control costs 87 71 66 1. Create employee loyalty to impact customer loyalty HR Professionals Senior Managers Executives % agree (either completely or somewhat)
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- 58. 5 Questions HRShould Be Asking & Be Able to Answer 4. What are our business’s key challenges? 1. Where is our business going? 3. How is our business performing against these measures? 5. What are the HR strategies & initiatives to address these challenges? 2. What are our business’s measures of success?
- 59. How do youknow if you’re part of New HR? 1. Regularly partner with other executives 2. Driven by key determinants of business’s success 3. Organization cannot imagine running the business without HR
- 60. What Is YourReadiness Level for the New HR? Getting Ready What new HR? Ready
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Editor's Notes
- #2 Genie story : HR executive & his wife from California were celebrating 10 th wedding anniversary in Hawaii. Walking along beach on Maui, spotted an unusual looking bottle that had washed up on shore. Opened it & out popped genie who said, “You know the deal—I’ll grant you 3 wishes.” Being a smart HR person & a well-trained husband, the HR person turned to his wife to ask what 3 wishes they should make. She said to husband “let’s ask for his & her Mercedes”. Husband repeated wish to genie who said “wish #1 is granted”. Wife then said to husband “let’s ask for our mortgage to be paid off”. Husband repeated wish to genie who said “wish #2 is granted”. Wife then said to husband, “I’ve loved it here in Hawaii & would love to come back, but you know how I hate to fly. Let’s ask for a bridge between California & Hawaii.” Husband repeated it to genie who said “I’m sorry but wish #3 is denied as that’s too difficult even for me.” Husband quickly then asked genie to make him a highly respected, highly valued member of his company’s Executive Team. To which the genie replied, “how many lanes would you like that bridge to have.” Message : Too many of us are waiting for a genie to make this desire come to pass, when it’s us to us to make it happen. Today we’ll talk about how to do so. Please ask questions/make comments as we go along.