1. The Power of HR as a Strategic Business Partner
Michael Hepperlen, Ph.D. – MDA Leadership Consulting
Paul Georgoff, M.A., SHRM-SCP – Dacotah Bank
© 2019 MDA Leadership Consulting. All rights reserved.

2. Agenda Introductions (5 minutes)
Define what “Strategic HR” means and what HR competencies are needed in this area (25 minutes)
PollEverywhere survey (5 minutes)
Review Dacotah Bank and MDA partnership in relation to Strategic HR competencies (25 minutes)
Wrap up and Q&A (15 minutes)
© 2019 MDA Leadership Consulting. All rights reserved.

3. Session Goals KNOW New insights about what “strategic HR” means
A better understanding of what HR competencies are most critical DO
Hone HR competencies that have the most impact on key stakeholders
BELIEVE!
That when HR professionals come together to form strong HR departments, they can have a dramatic impact in helping to drive core business strategy and results!
© 2019 MDA Leadership Consulting. All rights reserved.

4. The Case for HR as a Strategic Partner
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5. Why HR Matters Today
Businesses are shaped by the context in which they operate
Social and values changes
Public policy and social/environmental responsibility
Political and regulatory changes
Need to quickly respond to the velocity of the changes they have (VUCA world)
Need to serve both external and internal stakeholders
Organizations are more successful when employees have positive personal effect
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

6. A Model of Strategic HR
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7. Reference and Strategic HR Model
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8. Research Approach
This is the seventh round of surveys, which continues the year HR research program of Drs. David Ulrich and Wayne Brockbank of the University of Michigan, Ross School.
Study linked HR competencies to:
Personal individual effectiveness (of HR professionals)
Key stakeholder outcomes
Business results
Survey included 123 competency items – 60% were carried over from the 2012 study because they where high predictors of key outcomes from previous rounds.
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

9. Research Sample
Global sample (via 22 regional partners) to understand what are the common global elements of HR competencies, and what is unique to geographic and cultural factors.
Participants included in the survey:
1,395 business units
3,954 HR professionals
64% female
19% (5 years or less); 39% (15 or more years)
55% HR generalist; 10% training; 8% recruiting; 5% OD
31% North America; 14% China; 10% Africa; 7% Europe
27,904 associate raters (who provided 360 ratings on HR professionals and HR departments)
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

10. Strategic HR Competency Model
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11. Delivery (Foundational) Enablers
Technology and Media Integrator
Able to use technology and social media to drive high-performing organizations
Analytics Designer and Interpreter
Able to use analytics to improve decision making
Compliance Manager
Able to manage the processes related to compliance by following regulatory guidelines
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

12. Organization Enablers
Culture and Change Champion
Able to make change happen and to weave change initiatives into culture change
Human Capital Curator
Able to manage the flow of talent by developing people and leaders, driving individual performance, and building technical talent
Total Rewards Steward
Able to manage employee well-being through financial and nonfinancial rewards
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

13. Core Competencies Strategic Positioner Credible Activist
Able to position a business to win in its market
Credible Activist
Able to build relationships of trust by having a proactive point of view
Paradox Navigator
Able to manage tensions inherent in making change happen (e.g., be both long and short term, be both top down and bottom up)
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

14. Key Research Questions/Findings
What competencies have the greatest impact for HR professionals?
Need to have a minimum competency in many domains
Overall effectiveness comes mostly from being Credible Activists
When engaged “at the table” (in business discussions), what competencies add value for individual HR professionals?
If representing internal employees/managers: Credible Activists
When representing customers/investors: Strategic Positioners
To represent regulators: Compliance Managers
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

15. Key Research Findings (cont.)
What competencies do HR professionals require to drive business results?
The Paradox Navigator has the strongest relationship with prior business performance, followed by Strategic Positioner and Technology & Media Integrator
What is the relative importance of HR professionals vs. the HR department in driving business results?
The quality of the HR department has nearly 4 times the impact on business performance relative to HR professionals!
The value created for stakeholders (employee, line managers, customers, etc.) is 2-5 times more from the HR department than from HR professionals
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

16. Summary Conclusions
Victory Through Organization – the title and focus of this book – suggests that HR organizations matters more than individuals in creating business value.
The competencies and skills of HR professionals are critical too, as HR professionals represent the “face” and connection between key stakeholders and the broader HR department.
Strong HR professionals and HR departments create the Delivery and Organization Enablers, and ultimately foster the Core Competencies – including Credible Activist, Strategic Positioner, and Paradox Navigator – that differentiate high- performing, strategic HR organizations.
David Ulrich et al. (2017)
© 2019 MDA Leadership Consulting. All rights reserved.

17. Dacotah Bank-MDA Partnership
© 2019 MDA Leadership Consulting. All rights reserved.

18. Dacotah Bank/MDA Partnership
Projects:
Executive team development – driving change and strategic visioning
Leadership Coaching with key leaders
2015
2016
2018
2017
Executive Insights process with management team
Leadership Academy I began
Leadership Insights workshop with management team
Leadership Academy I completed
High-Performing Team workshop with SLT
2019
Management team workshop on executing strategic vision
Continued Coaching Engagements
Projects:
Leadership Academy II
Leadership Pipeline framework completed
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19. HR Competency Evolution
Strategic Positioner
Credible Activist
Paradox Navigator
Culture and Change Champion
2015
2016
2018
2017
Human Capital Curator
2019
Strategic Positioner
Paradox Navigator
Culture and Change Champion
Credible Activist
Culture and Change Champion
Human Capital Curator
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20. Strategic HR Competency Model
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21. Strategic HR Competency Model
David Ulrich et al. (2017)
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22. Questions & Answers
© 2019 MDA Leadership Consulting. All rights reserved.