Presentation on theme: "Transforming HR into a Business Partner"— Presentation transcript:
1 Transforming HR into a Business Partner ITU Regional Workshop on “Strategic HR Management” Cairo April 2008Lecture 1
2 Presentation Outline Market analysis and its impact on HR Business plan – Structure-HR considerationsCase studyTransformation StatisticsThe Transformation WaveThe Changing Role of HRThe Business Partner RoleKey Roles of HR as a Business PartnerConclusion
3 National Advantage in HR Firm StrategyStructure andRivalryChanceDomesticDemandConditionsFactorConditionsRelated andSupportingIndustriesGovernment
4 HR issues Competition in the labour market Rivalry between competitors Demographics (customers)Age structure, lifelong employment?Rokkies, who will be accepted?Staff from related industriesDomestic-versus regional –global demand
5 Industry Competition; The Five Forces Pressure determine prices, cost, investments ,Hr capital etc. Threat of newEntrantsRivalry amongExistingCompetititorsBargainingPower ofSuppliersBargainingPower ofBuyersThreat ofSubstituteProducts
6 New Entrants-Incumbent Offer better salary-promotion- trendNew technology-support (capacity building)High responsibility – deliver-promotionCompetence gapOutsourcing of training-to whomThe role of education systems
7 Generic Strategies and impact on HR strategies Competitive AdvantageLower Cost DifferentiationBroadTargetNarrowCostLeadershipDifferentiationCompetitiveScopeFocusedDifferentiationCost Focus
8 Statistics of HR Transformation 50% of organisations are in the middle of transforming their HR functions;12% completed their HR transformations in the past year;Another 10% intend to begin the process in the next year.(Global HR Transformation Study, 2006, Mercer Human Resource Consulting)
9 HR TransformationProcess of Recreating the HR function so as to enhance HR contribution to the businessIt involves a shift from the internal operations (transactional, inward) activities to a more market perspective related performance.Over the years role has been evolving, but within its HR (Personnel) box. Current transformation is breaking outside the boxNow HR transformation deals with issues of Organisational Renewal, Change Management, Business Success, Business intellegence, Culture, Behavioral Change.
10 Transformation Wave5-10 years ago: focused on improving technology and service delivery, technology shift gives new aspectsCompetition, Time to market, Intranet, Restructuring/Rightsizing, OutsourcingThis was the role of HR as a Consultant. Role did not transform the HR function into a business partnerNow HR is being called up to deliver
11 Transformation WaveHR Business Partnering model often started off as a Cost Saving initiative, responding to a Business Directive. This was the Driving force of the model in the 90’s.Led to the introduction of IT Driven HR Services, Self- service forms processes etc.What started as a Cost Reduction/Competition Program ended up as a Revitalisation of the whole HR ActivityNow HR is the driving the vision-strategy targetsCloser follow up related to market changes
12 Changing Role of HR HR ROLE/CONTRIBUTION LOW VALUE HIGH VALUE BUSINESS PARTNERCONSULTANTTRANSACTIONALLOW VALUEHIGH VALUE
13 Changing Role of HR TRANSACTIONAL Inform Police Control Reactive CONSULTANTAdviseSolutionsInwardReactiveBUSINESS PARTNERIntegrateStrategyOutwardProactive
14 Transactional example of HR Delivering a Service to a client or end user.Recruit an EngineerInvestigate a discipline CaseBook Training for the participants to the Cairo WorkshopProvide ConsultingPlus all the other Record keeping Functions
15 CONSULTANTProvide HR to a Business Unit in order to solve a specific problem.Define competence requirementsGiving advice in dealing with specific issues eg.: How to stop a Competitor from poaching your staff; How to create a Customer Care Culture.
16 PARTNER Working with the top Management Team as a partner in: Participating in defining Business Strategy.Actively live up to Vision and mission statementInfluencing change in Strategy in view of the organizations Talent Base, or ability to build one in the short Term.Develop capacity buildingImplementing the HR component of the Business Strategy.
17 Strategist and Steward Deloitte Report (2007) on the Evolving Role of the Chief Human Resources Officer (CHRO).Today’s CHRO is a leader who not only manages the HR function, but also collaborates with the CEO and Board of Directors on a range of Strategic issues.They play a role in building and shaping –not just staffing- enterprise Strategy.
18 The Deloitte Framework for The Roles of the CHRO 1. Workforce Strategist2. Organisational and Performance Conductor3. HR Service Delivery Owner4. Compliance and Governance Regulator
19 Discuss priorities What priorities in you county ? Depending on situationProcess –job designDefine future workforce size-competenceCapacity buildingDefine redundancy
20 1. WORKFORCE STRATEGISTCrafting workforce Strategies with an eye on global trendsConscious of the Challenge of Attraction and Nurturing Capacity buildingNext Generation Perspective including technology shiftUnderstanding of the Needs of Today’s Workforce
21 2. Organisational and Performance Conductor Making choices among options of maximizing performance of workforceCHRO must be a Rewards Program Structuring the job design, a change Master
22 3. HR Service Delivery Owner Still Delivering HR Admin and operations in a Cost Effective way.A mix of Self Service operations, use of Vendors (outsource) and integrating these into one whole.
23 4. Compliance and Governance Regulator Work directly with the Board on HR Issues relating to Risk Mgt, Business intelligence, Ethics, IntegrityAssist Board with Member Selection, Executive Compensation, Succession Planning, etc.Interpretation of regulatory issues
24 Strategist and CoachHelp CEO leverage global talent trends as viable opportunities (fast changes).They lead the change towards new working methods with more individual responsibility.They identify the kind of culture the company should have, then define that culture, and supports the environment that emerges.
25 What is HR as a business partner?? Must manage people (Talent Management)Identify skills required within people in the organisation (Competency Profiling)Develop and supply quality executives (Leadership Development)
26 What is HR as a business partner?? Motivate and retain key players (Human Capital) so that they perform at their bestMaintaining and improving company’s image and being an attractive employer ExemplifyBe involved at the sharp end of the business, (time to market etc)
27 Understanding the business Being concerned with the bottom line and impact of any decision on profitability.The business environment (SWOT, competitor moves, market share, etc.)Understanding customers, customer profiles (segments) and their needs. Why ?
28 Four Key Roles of HR as a Business Partner HR as Capacity building forceHR as Change Manager (Opportunities-Steering)HR as Relationship BuilderHR maintaining Human Capital
29 HR as Capacity builderParticipate in formulation of list of organisational and individual competencies linked to the corporate goals or strategies and support systemsDevelop access to information and has key role in information dissemination (analyze shifts in market and draw conclusions on HR needIdentifying, nurturing, developing and untapping human talent.
30 HR as Knowledge Facilitator This assumes HR is involved in the formulation of the Organisation’s Vision, Mission and Business Strategy;Must be part of the Management to advise on what is possible given the stock of talent and capacities available in the oganisation;Propose Strategies that best attracts and retains the talent that will deliver on the Business Objectives.
31 HR as Relationship builder Both internal and external customers (follow market demandSupply Chain Management (in telecoms this is important for maintenance of brand image and brand integrity…Branding ? is a powerful tool for promoting Culture. A growing school of thought is that Branding is as much an HR responsibility as it is a PR function because of its power to attract and retain employees.Managing diversity
32 HR as Relationship Builder: Managing Diversity Many organisations now operating in different cultural environments and markets and different owners requirements;MTN is in Africa, the Middle East. Vodafone is in UK, Europe, South Africa, Kenya. France Telecom has just won the bid for Telkom Kenya, and will bring their own management styles and culture.
33 HR as Human Capacity builder Career ManagementFacilitate progression of staff based on their competencies, desires and contribution to organisational goalsCapcity Building (job design) in anticipation of future needs
34 So What is Strategic Human Resources Mnagement?? It is about getting the Human Resources FUNCTION INTEGRATED within the Business.It is about INVOLVEMENT in the Business Strategy Formulation Process.It is about being listened to and heard, because Human Capital is the only Sustainable source of Competitive Advantage at the Disposal of the Organisation.
35 So What is Strategic Human Resources managing?? But it is up to the HR Function to rise to this Challenge.In fact, it is up to the HR professionals to rise to the new challenge of the HR function.After all, this is what we have been asking for.
36 CONCLUSIONAs Human Capital Related Issues Continue to Challenge on Organisations overall Strategy, The Human Resources manager must become a familiar face in the Management Team and a potent force in the boardroom.
37 CONCLUSIONFindings however reveal a troubling gulf between the needs of the business and the ability of HR to respond.This is forcing companies to rethink their approach to the recruitment, training and development of HR