The Future of HR

The Future of
HR
Why, Where, What and How
Allan Freed
September 2012
Session Objectives
Think
•  About challenges facing the HR profession
•  About how HR professionals can master
competencies to deliver value
•  About 2012 global HR competency study
results
Behave
•  Prepare improvement plans for your
department, function or team, or for you
personally
Have fun
•  Engage in constructive conversation to cocreate HR going forward
Source of ideas
Leadership Human Resources 3
What is the future of HR?
HR
Value
Why
Where
What
How
Business
Context
Individual
Ability
Stakeholders
Leadership Organization
Capability
HR
HR
Department Professionals
HR
Practices
HR
Analytics
To Create Value, HR Needs to Evolve
HR Evolution
HR Outside/In
HR Strategy
HR Functional Expertise
HR Administrative Utility
Time
What is the future of HR?
HR
Value
Why
Where
What
How
Business
Context
Individual
Ability
Stakeholders
Leadership Organization
Capability
HR
HR
Department Professionals
HR
Practices
HR
Analytics
Fundamental Message:
Value is de4ined by the receiver more than the giver. What is the future of HR?
HR
Value
Why
Where
What
How
Business
Context
Individual
Ability
Stakeholders
Leadership Organization
Capability
HR
HR
Department Professionals
HR
Practices
HR
Analytics
Trends and Context
Category
Example Trends
STEPED
Social
• 
Technical
• 
• 
Economic
• 
• 
Changing lifestyle (family,
urbanization, religion, well
being)
Pace of change;
Access to information and
relationships
Global markets and competition
Stagnation and economic cycles
Political
• 
• 
Political unrest
Regulatory shifts
Environmental
• 
• 
Social responsibility
Build reputation
Demographic
• 
Changing workforce (age,
education, global, expectations)
HR Implications
New business realities
Category
STEPED
Social
Questions to ask
• 
• 
• 
• 
Technical
Economic
• 
• 
• 
• 
• 
Political
• 
• 
• 
• 
• 
Environmental
Demographic
• 
• 
• 
• 
What are health patterns (physical, emotional)?
What are family patterns (married, not married,
divorced, # of children)?
What are religious trends (heritage, activity)
What is urban/rural mix and movement?
What is life style (workday, weekends, dominant
hobbies)?
• 
What is transportation?
• 
What are the social problems (e.g., drugs, crime)?
• 
Who are the hero’s or famous people from this
area (past and present)?
What are their communication mechanisms (media, television) and how independent are they?
What is level of technological maturity within the geography (internet use, computer access)?
What is their use of social media?
What is the Gross Domestic Product? Relative to • 
What are leading industries? Companies?
others, how it is doing?
• 
What is economic gap of haves vs. have nots (size
What economic cycle are they in (recession,
of middle class)?
growth)?
What is unemployment?
What is their political history?
• 
What is their political heritage (democracy,
How much political stability is there?
socialism, parliament, king or family rule)?
How much regulation vs. private enterprise exists? • 
What are the political “hot topics” that exist?
(what is the role of government in industry?)
• 
What is the relationship of the military and
How open (vs. repressive) is their government?
government?
• 
How much corruption is there in decision making?
• 
What are the environmental issues that people are worried about?
How does the geography participate in global conferences and trends?
What is the average age?
• 
What is the education level? (public vs. private)
What is the birthrate?
• 
What is the income level? (income disparity)
HR measurement from the outside/in: Stakeholders
Investor Customer Community HR Stakeholders (external view) Employee Today/tomorrow Line manager 1
0.9
Confidence in your future
0.8
0.7
0.6
0.5
0.4
Confidence in track record
0.3
0.2
0.1
Time
2011
2007
2002
1997
1992
1987
1982
0
1977
Correlation of earnings
and stock price
Investors have seen financial results account for a shrinking
proportion of a company’s market value
What is the future of HR?
HR
Value
Why
Where
What
How
Business
Context
Individual
Ability
Stakeholders
Leadership Organization
Capability
HR
HR
Department Professionals
HR
Practices
HR
Analytics
What is the future of HR? Individual
Talent =
COMPETENCE
COMMITMENT
CONTRIBUTION
Talent means engaging heads, feet, and hearts
What do we mean by organization capability?!
Social Technical Individual Competence Organizational Capability Individual Technical Competence Core Competence: Functional / Technical Expertise Individual Organizational Doing organization audits
CURRENT
STATE
FUTURE
STATE
STRATEGY
1
4
CAPABILITY/
ORGANIZATION
2
5
ACTION
3
6
RESULT
What Organization Capabilities Might Exist? !
Five-step approach to build organization capabilities that will
support lasting growth and profitability:
1.  Identify the capabilities required for successful strategy
execution
2.  Assess where we stand vis a vis organizational (and technical)
capabilities e.g., audit our current capability levels
3.  Define needs for improvement
4.  Align systems, practices and needs for investment or
reallocation of resources
5.  Take action and monitor
What Organization Capabilities Might Exist? !
How Effective Now:
1-minimal; 5- a great deal
How effectively do we current perform on each of the following thirteen capabilities…
1. 
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Talent: We are good at managing things like intellectual capital, know-how,
competencies, skills, commitment, workforce
Speed: We are good at doing things fast, with agility, adaptation, flexibility,
cycle time, responsiveness
Shared Mindset: We are good at managing or changing our culture, or doing,
transformation, firm identity, firm equity, firm brand, shared agenda
Learning: We are good at knowledge management, sharing best practices
Collaboration: We are good at teamwork, working across boundaries, doing
merger integration, or sharing information
Innovation: We are good at administrative, product, channel or strategic
innovation
Accountability: We are good at holding people accountable with clear
performance expectations and the ability to execute and implement what we
promise.
Leadership: We are good at building leadership depth through the company,
with things like bench strength, quality of management, leadership brand
Strategic Clarity: We are good at creating a shared agenda, setting strategic
priorities, and having a shared point of view
Efficiency: We are good at reducing costs through redesign, reengineering, or
restructuring
Customer Service: We are good at customer relationships with a customerfocused organization and customer intimacy
Social Responsibility: We are good at being sustainable by managing our
carbon footprint, philanthropy, and values.
Risk: We are good at managing risk by attending to disruption, predictability,
and variance
1
2
3
4
5
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Most Critical 2-3 in
next 3 years
Leader vs. leadership? !
External Celebrity Leaders Competent Leaders Leadership Brand Leadership Systems Internal Leaders Leadership Leadership brand!
LEADERSHIP BRAND Leadership Code (Common) X
Leadership Differentiators 1.  What percentage of leadership is basically the same? 2.  If there are common rules for any leader, what are they? Leadership Code: The DNA of Effective Leadership
Count as high as you can in 45 seconds, starting
from 1
Count again:The value of using a
framework for leadership
May 2010
Leadership Brand
24"
HRLP
© The RBL Group
Leadership Code: summary of key skills Human Capital Developer: I …
• Empower employees
• Manage careers
• Create an employee brand
• Map the workforce
• Systematically review future talent
Long-term
Strategic
Personal
Proficiency
Individual
Strategist: I…
• Have a point of view about our future
• Think and act in a customer-centric view of
strategy
• Create strategic traction throughout my
company
• Communicate with strategic stories
• Have a personal leadership brand
• Maintain my physical resources
• Develop intellectual agility
• Create emotional reserves
• Build social networks
• Have a strong moral coce
Organization
Talent Manager: I …
Executor: I …
• Coach others
• Communicate effectively
• Develop competencies in others
• Build commitment from others
• Ensure contribution (am a meaning
maker)
• Make change happen
• Follow a decision protocol
• Ensure accountability
• Build teams
• Ensure technical proficiency
Near-term
Operational
Translate firm brand into leadership brand
differentiators
Firm Brand
Leadership Brand
This organisation is known for…
Leaders at this organisation are known for…
Wal-mart
Always low prices
Managing costs efficiently, getting things done on time
FedEx
Absolutely, positively, doing whatever
it takes
Managing logistics, meeting deadlines, solving problems
quickly
Lexus
Pursuit of perfection
Managing quality processes (lean manufacturing and
design, Six Sigma) for continuous improvement
Procter &
Gamble
Brands you know and trust
Developing consumer insights, precisely targeted
marketing, product innovation
McKinsey
CEO’s trusted adviser
Leading teams that deconstruct business problems,
synthesise data, and develop solutions
Boeing
People working together as a global
enterprise for aerospace leadership
Solving global problems, working as teams, possessing
technical excellence in aerospace
Apple
Innovation and design
Creating new products and services that break the
industry norms
PepsiCo
Appealing to the younger generation
Building the next generation of talent
Your
??
Company
??
What is the future of HR?
HR
Value
Why
Where
What
How
Business
Context
Individual
Ability
Stakeholders
Leadership Organization
Capability
HR
HR
Department Professionals
HR
Practices
HR
Analytics
Transformation of HR: Redesign of HR
How to transform HR
HR Department
How do we organize to
deliver work?
HR analytics
HR’s
Transformataion challenge:
How can we measure
and track success of
HR work
Value to key
stakeholders
HR Professionals:
What competencies must
HR professionals demonstrate?
HR practices
How can we align,
integrate, and Innovate our
HR practices?
HR department
Run the HR function as if it is a business within a business. STRATEGY: What is our vision, mission, and value proposition? STRUCTURE: How do we organize resources to deliver our mission? •  Transaction work -­‐ Service centers/e-­‐HR/outsourcing •  Transformation work -­‐ Centers of expertise -­‐ Embedded HR -­‐ Operational HR -­‐ Corporate HR Aligning business and HR Strategy
decentralized HR strategy for each business HR strategy for each business and overall corporate HR strategy Business strategy centralized One HR strategy for entire business centralized Human Resources decentralized HR department
Align our HR organization Corporate
Centers of expertise
people
Project
team
Embedded HR:
Generalist
Partner
Relationship manager
Line manager/
client
performance
information
Operational HR
work
HR transactions
Employees
HR Department: Split into 2 parts
HR work: first transaction, then transformation
TRANSACTION
TRANSFORMATION
• Better, faster, cheaper
• Rationalize: remove redundancies
• Standardize: on core processes
• Optimize: reduce costs and upgrade
legacy systems
• Globalize: one standard
worldwide
• Accessibility/access
• Customization
• Flexibility
• Simplicity
• Connectivity
• Adaptability
HR department: Corporate
Corporate
A small dedicated group of senior HR executives who focus on:
• Top management: paying attention to unique HR requirements
of top management
• Corporate initiatives: crafting HR policies that affect the overall
organization and shape CEO’s agenda
• Integration and oversight: leading the HR function by managing
careers and disputes
• Corporate brand: representing the firm to key stakeholders with a
consistent culture face and identity
• Develop HR professionals
HR department: Centers of Expertise
Centers of Expertise
Specialists who have unique insights and great depth in HR practice areas
around people (staffing, training), performance (rewards), communication,
and organization (organization development, labor)
• Create and control a menu of choices
• Provide specialist expertise on targeted problems
• Push to businesses corporate wide challenges
• Be pulled into business to provide specialist expertise on
targeted problems
• Share learning from one business to another
• Connect with external thought leaders
HR department: Embedded HR
Embedded HR
HR business partners who work on the business
Management team and participate in business discussions
•  Perform talent and organization diagnosis to
align with and drive strategy
•  Be a strategic architect in shaping strategy
•  Coach the business leader and other team
members
•  Help make strategy and change happen
•  Measure and track quality of HR work in the
business
HR department: Shared services
Shared Services
Technically focused HR professionals who process HR
administrative requirements with high efficiency
• Build administrative systems to process information
• Ensure responsive, cost efficient, consistent, and accurate services
• Leverage technology to deliver services
• Share information to other members of the HR community
HR practices: How can I align, integrate, and Innovate
our HR practices?
•  Buy ● Bounce •  Build ● Bound •  Borrow ● Bind People •  Restructure organization •  Reengineer work process •  Manage teams •  Architect physical setting Performance HR Practices Work •  Set standards •  Ensure consequences -­‐ 4inancial -­‐ non 4inancial •  Do feedback Communication Build communication plan •  Top down •  Bottom up •  Inside out •  Outside in •  Side to side HR practices
How can I align, integrate, and Innovate our HR practices?
Align
People
Performance
Information
Work
Integrate
Innovate
2012 HR Competencies:
Six Primary Domains
2012 HR Competencies:
Domains and Sub-Factors
Strategic Positioner
•  Interpreting global business context
•  Decoding customer expectations
•  Co-crafting a strategic agenda
Credible Activist
• 
• 
• 
• 
Earning trust through results
Influencing and relating to others
Improving through self-awareness
Shaping the HR profession
Capability Builder
•  Capitalizing organizational capability
•  Aligning strategy, culture, practices, and
behavior
•  Creating a meaningful work environment
Change Champion
•  Initiating change
•  Sustaining change
Human Resource Innovator &
Integrator
•  Optimizing human capital through
workforce planning and analytics
•  Developing talent
•  Shaping organization and communication
practices
•  Driving performance
•  Building leadership brand
Technology Proponent
•  Improving utility of HR operations
•  Connecting people through technology
•  Leveraging social media tools
These Competencies Help HR Professionals
41!
Balance Competing Demands
Outside
Strategic
Business
Strategic
Positioner
Technology
Proponent
Administrative
In
Credible Activist
People
HR
Professional
Past
Change
Champion
Future
Event
HR
Innovator &
Integrator
Sustain-ability
Individual
Capability
Builder
Organizational
What is the future of HR?
HR
Value
Why
Where
What
How
Business
Context
Individual
Ability
Stakeholders
Leadership Organization
Capability
HR
HR
Department Professionals
HR
Practices
HR
Analytics
HR of the Future: Our readiness? !
How Effective
Now:
1-minimal; 5- a
great deal
How effectively does our HR work account for the following? (or How effectively do we currently
1 2 3 4 5
perform on each of the following factors for the future of HR?)
HR meta
message
1. 
HR’s
relationship
to business
2.
3.
4.
HR’s targets 5.
or outcomes
6.
7.
Domains for 8.
HR
9.
investments
10.
Outside/in: We are good at connecting our HR work with customers, investors, and
communities outside our organization.
Business context: We are good at understanding the social, technological, economic,
political, environmental, and demographic context of our business
Stakeholders: We are good at defining the value for key stakeholders created by our HR
work
Talent: We are good at improving the productivity of our employees through their
competence, commitment (engagement), and contribution (meaning)
Organization: We are good at identifying and investing in organization capabilities
required for our future success
Leadership: We are good at building leadership depth through the company, with things
like bench strength, quality of management, leadership brand
Restructure HR Departments: We are good at building HR departments so that they turn
knowledge into client productivity, with clear roles and responsibilities
Reengineer HR Practices: We are good at aligning, integrating, and innovating our HR
practices in people, performance, communication, and work
Upgrade HR Professionals: We are good at ensuring that HR professionals have the right
competencies to deliver value and build their HR career
Track or measure HR progress. We are good at creating HR analytics focused on the
right issues
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Most
Critical
2-3 in
next 3
years