1. Transforming HR into a Business Partner
Mike Nxele, BDT/HCB
ITU Regional Workshop on “Competencies for Competitiveness' Cairo, June 2007

2. Presentation Outline
- HR Transformation Process - Key Business Partner Role of HR - New Challenges for HR - Future functions for HR - Perceptions of HR function
- Conclusion

3. 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)

4. 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 direct role in corporate 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, culture, behavioral change.

5. Transformation Wave
5-10 years ago: focused on improving technology and service delivery
Time of Intranet, BPR, 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

6. 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)
Motivate and retain key players (Human Capital) so that they perform at their best
Maintaining and improving company’s image
Be involved at the sharp end of the business

7. 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 and their needs.

8. Four Key Roles of HR as a Business Partner
HR as knowledge facilitator
HR as change manager
HR as relationship builder
HR as Human Capital steward

9. HR as Knowledge Facilitator
Participate in formulation of list of organisational and individual competencies linked to the corporate goals or strategies
Facilitate access to information and has key role in information dissemination
Identifying,nurturing, developing and untapping human talent.

10. HR as Change Manager HR as principal change agent
Identifying behaviors and values that support change in line with new corporate goals and challenges
Implementing new rules and procedures that reinforce and reward desired behaviors
Implementing effective communication strategies to influence acceptance of change, and build a new culture in the organisation

11. HR as Relationship builder
Both internal and external customers
Supply Chain Management (in telecoms this is important for maintenance of brand image and brand integrity…
Managing diversity

12. HR as Human Capital Steward
Career Management
Facilitate progression of staff based on their competencies, desires and contribution to organisational goals
Building competencies in anticipation of future needs

13. PRIORITIES FOR HR EXECUTIVES OVER THE NEXT TWO YEARS(2003)
Role of SHR
Communication
Make sure that your
line managers think effective
communication.
Succession
Planning
Build your
leadership
pipeline.
Diversity
Move your organization
beyond “intellectual
diversity.”
Measurement
Focus on meaningful
measures.
PRIORITIES FOR HR EXECUTIVES OVER THE NEXT TWO YEARS(2003)
Learning
Ensure your organizational
capacity exceeds the
rate of change.
Leadership
Redefine leadership,
and demand it of
every employee.
Employment
Branding
Create a brand for
your organization in
the labour market.
Employee
Engagement
Capture a bigger
portion of the
employee
mindshare.

14. New challenges for HR Results of 2006 Mer….
Global transformation Study
Challenge
► Acquiring key talent/back of available talent
► A.. cultural and behavioral change in the organisation
► Building Leadership capa
► Retaining key talent
► Increasing l… Management responsibility
► Succession Planning
Response
43%
40% 40%
38%
26%
24%

15. New challenges for HR Challenge Response
► Increasing workforce productivity
► Constraints on Headcount.
► Encouraging organisational innovation
► Implementing people changes resulting from changes due to operational performance
► Measuring human capital contribution to business performance
►Lack of consensus around the organisations strategy/direction
► Reducing overall human capital costs
► Resourcing and managing HR issues in a new geographies for the company
Response
22%
20%
18%
17%
16%
15%

16. New challenges for HR Challenge Response
► Managing human capital during and after an acquisition or merger
► Workforce planning
► Increasing the return on investment in remuneration
► Coping with aging workforce
Response
15%
14%
12%

17. Observation
The major challenges for HR are evidently linked to transformational issues and human capital strategy
Matters of processes, technology and administration are becoming less and less of a challenge to HR
The verdict?.... HR is moving up the business value chain

18. What HR functions will matter in the future?
Human Capital strategy
Talent Management
Change Management
Leadership Development
Organisation Design
Organisation Development
Operational excellence within the HR Function
Workforce Planning
Succession Planning
Industrial Relations
Risk Management
Today
40%
49%
42%
21%
35%
46%
31%
24%
32%
18%
2-3 yrs
64%
55%
38%
52%
27%
19%
17% ↑ ↓

19. Is HR being finally recognised
Global perceptions of the role of HR are also changing
67% of respondents now view HR as a Strategic Partner, participating in strategic discussions and decisions
67% of HR Executives are reporting direct to the CEO, up from 54% in 2003
59% discuss strategic issues with the board, issues such as Talent Management, Succession Planning, etc.

20. Conclusion The future of HR is bright
Value lies in contributing to business success
Strategic value of HR is in being a business partner
It is up to HR professionals to seize this opportunity and prove their worth and value in organisations.

21. Conclusion
Thank You.