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Telecommunication Development Bureau Transforming HR into a Business Partner ITU Regional Workshop on Strategic HR Management Cairo 13-17 April 2008 Lecture.

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Presentation on theme: "Telecommunication Development Bureau Transforming HR into a Business Partner ITU Regional Workshop on Strategic HR Management Cairo 13-17 April 2008 Lecture."— Presentation transcript:

1 Telecommunication Development Bureau Transforming HR into a Business Partner ITU Regional Workshop on Strategic HR Management Cairo 13-17 April 2008 Lecture 1

2 Telecommunication Development Bureau Presentation Outline Presentation Outline Market analysis and its impact on HR Business plan – Structure-HR considerations Case study Transformation Statistics The Transformation Wave The Changing Role of HR The Business Partner Role Key Roles of HR as a Business Partner Conclusion

3 Telecommunication Development Bureau National Advantage in HR Firm Strategy Structure and Rivalry Factor Conditions Domestic Demand Conditions Related and Supporting Industries Chance Government

4 Telecommunication Development Bureau HR issues Competition in the labour market Rivalry between competitors Demographics (customers) Age structure, lifelong employment? Rokkies, who will be accepted? Staff from related industries Domestic-versus regional –global demand

5 Telecommunication Development Bureau Industry Competition; The Five Forces Pressure determine prices, cost, investments,Hr capital etc. Threat of new Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products Rivalry among Existing Competititors

6 Telecommunication Development Bureau New Entrants-Incumbent Offer better salary-promotion- trend New technology-support (capacity building) High responsibility – deliver-promotion Competence gap Outsourcing of training-to whom The role of education systems

7 Telecommunication Development Bureau Generic Strategies and impact on HR strategies Competitive Advantage Competitive Scope Lower Cost Differentiation Broad Target Narrow Target Cost Leadership Differentiation Cost Focus Focused Differentiation

8 Telecommunication Development Bureau 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 Telecommunication Development Bureau HR Transformation Process of Recreating the HR function so as to enhance HR contribution to the business It 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 box Now HR transformation deals with issues of Organisational Renewal, Change Management, Business Success, Business intellegence, Culture, Behavioral Change.

10 Telecommunication Development Bureau Transformation Wave 5-10 years ago: focused on improving technology and service delivery, technology shift gives new aspects Competition, Time to market, Intranet, Restructuring/Rightsizing, Outsourcing This was the role of HR as a Consultant. Role did not transform the HR function into a business partner Now HR is being called up to deliver

11 Telecommunication Development Bureau Transformation Wave HR 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 90s. 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 Activity Now HR is the driving the vision-strategy targets Closer follow up related to market changes


13 Telecommunication Development Bureau Changing Role of HR TRANSACTIONAL Inform Police Control Reactive CONSULTANT Advise Solutions Inward Reactive BUSINESS PARTNER Integrate Strategy Outward Proactive

14 Telecommunication Development Bureau Transactional example of HR Delivering a Service to a client or end user. Recruit an Engineer Investigate a discipline Case Book Training for the participants to the Cairo Workshop Provide Consulting Plus all the other Record keeping Functions

15 Telecommunication Development Bureau CONSULTANT Provide HR to a Business Unit in order to solve a specific problem. Define competence requirements Giving advice in dealing with specific issues eg.: How to stop a Competitor from poaching your staff; How to create a Customer Care Culture.

16 Telecommunication Development Bureau PARTNER Working with the top Management Team as a partner in: Participating in defining Business Strategy. Actively live up to Vision and mission statement Influencing change in Strategy in view of the organizations Talent Base, or ability to build one in the short Term. Develop capacity building Implementing the HR component of the Business Strategy.

17 Telecommunication Development Bureau Strategist and Steward Deloitte Report (2007) on the Evolving Role of the Chief Human Resources Officer (CHRO). Todays 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 Telecommunication Development Bureau The Deloitte Framework for The Roles of the CHRO 1.Workforce Strategist 2.Organisational and Performance Conductor 3.HR Service Delivery Owner 4.Compliance and Governance Regulator

19 Telecommunication Development Bureau Discuss priorities What priorities in you county ? Depending on situation Process –job design Define future workforce size- competence Capacity building Define redundancy

20 Telecommunication Development Bureau 1. WORKFORCE STRATEGIST Crafting workforce Strategies with an eye on global trends Conscious of the Challenge of Attraction and Nurturing Capacity building Next Generation Perspective including technology shift Understanding of the Needs of Todays Workforce

21 Telecommunication Development Bureau 2. Organisational and Performance Conductor Making choices among options of maximizing performance of workforce CHRO must be a Rewards Program Structuring the job design, a change Master

22 Telecommunication Development Bureau 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 Telecommunication Development Bureau 4. Compliance and Governance Regulator Work directly with the Board on HR Issues relating to Risk Mgt, Business intelligence, Ethics, Integrity Assist Board with Member Selection, Executive Compensation, Succession Planning, etc. Interpretation of regulatory issues

24 Telecommunication Development Bureau Strategist and Coach Help 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 Telecommunication Development Bureau 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 Telecommunication Development Bureau What is HR as a business partner?? Motivate and retain key players (Human Capital) so that they perform at their best Maintaining and improving companys image and being an attractive employer Exemplify Be involved at the sharp end of the business, (time to market etc)

27 Telecommunication Development Bureau 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 Telecommunication Development Bureau HR as Capacity building force HR as Change Manager (Opportunities-Steering) HR as Relationship Builder HR maintaining Human Capital Four Key Roles of HR as a Business Partner

29 Telecommunication Development Bureau HR as Capacity builder Participate in formulation of list of organisational and individual competencies linked to the corporate goals or strategies and support systems Develop access to information and has key role in information dissemination (analyze shifts in market and draw conclusions on HR need Identifying, nurturing, developing and untapping human talent.

30 Telecommunication Development Bureau HR as Knowledge Facilitator This assumes HR is involved in the formulation of the Organisations 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 Telecommunication Development Bureau HR as Relationship builder Both internal and external customers (follow market demand Supply 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 Telecommunication Development Bureau 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 Telecommunication Development Bureau HR as Human Capacity builder Career Management Facilitate progression of staff based on their competencies, desires and contribution to organisational goals Capcity Building (job design) in anticipation of future needs

34 Telecommunication Development Bureau 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 Telecommunication Development Bureau 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 Telecommunication Development Bureau CONCLUSION As 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 Telecommunication Development Bureau CONCLUSION Findings 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

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