5 the future of hr dr peter saul power point presentation 2163

8/6/2019 5 the Future of Hr Dr Peter Saul Power Point Presentation 2163

1/23

Strategic Consulting Group

THE FUTURE OF HR?

Dr. Peter Saul

Director, Strategic Consulting Group

Paper presented to:

Macquarie Graduate School of Managements

People Management and Leadership Conference

September 16-19, 2001


2/23


SHIFTS THAT ARE RE-SHAPING HR ROLES

FROMLocal markets, operations

Manufacturing, clerical work

Hierarchy

Intermediaries; face-to-face

Obedience to formal authority

Stability, efficiency, control

Full time job

Customer service

Work done by employees

Fixed work location

Management prerogative

Loyal service

White, male workforce

Financial performance

Get a job

TOGlobal markets, operations

Service, knowledge work

Networks

Direct access,virtual relationship

Questioning of formal authority

Change, creativity, flexibility, order

Part-time and project work

Shareholder, stakeholder value

Work done by many contributors

Diverse work locations

Social licence

Marketable knowledge, skills

Diverse workforce

Triple bottom line

Get a life


3/23


CHANGING WORKER ASPIRATIONS

RICHARD BRANSON

MICHAEL JORDAN

RICHARD BORES (Wizard Home Loans)

MERY STREEP AND JODIE FOSTER

ANITA RODDICK

NELSON MANDELA AND JERRY MAGUIRE

had a dream and went through with it...loved what he did

lives life the way he wants... created this lifestyle for herself out

of what could have been a downward spiralreally inspiring

AFR BOSS magazine, June 2001. Survey of work role models for white collar

Australians, in 20-30 years age range.


4/23


HR AT A CROSSROADS

Significant change is inevitable for HR but what HR will be

and do is not yet clear

SRHM is doing research to develop a vision for the future of HR

and a profile of the future HR practitioner

An HR practitioner might be "a hybrid line manager" who is

"first and foremost a business executive" but has expertise in

at least one HR function.

SHRM President and CEO, Helen Drinan

We have to get management to understand that they'reresponsible for people AND If we do our joband work

ourselves out of a jobso be it."

Results of a forum on the "The State of the HR Profession"

held in conjunction with the 2001 Annual Conference of the

Society for Human Resource Management

Also see FT.com online forum on Human Resources: A career in crisis?


5/23


EMERGING LEGAL ISSUES AT WORK

NEW TECHNOLOGY ISSUES

AGE CONSCIOUSNESS IN THE WORKPLACE

GLOBALISATION OF EMPLOYMENT LAW

TRAINING FOR LEGAL COMPLIANCE

WORKPLACE SAFETY

Source: Garry Mathiason (Littler, Mendelson, Fastiff, Tichy & Mathiason)

SHRM Annual Conference June 2001. Results of survey of 400 employment attorneys


6/23


HR EXECUTIVES VIEW OF THE FUTURE

TOP 5 BUSINESS CHALLENGES

Developing new markets

Improving profitability

Market share growth

Becoming the recognised

global market leader

Building shareholder value

TOP 3 HR CHALLENGES

Attracting and retaining

talented people

Improving organisational

capabilities

Developing leadership skills

Source: Arthur Andersen survey of HR Executives in almost 70 Australian-based firms

Reported in HR Monthly, August 2001, p.17


7/23


The bad and the ugly in HR

Many HR people still lack business acumen

We have not adequately managed high expectations

of HR

Theres too much modeling of mediocrity and way toolittle real research going on

We have overhyped e-learning and some other fads

We do much order-taking and mistaking talk foraction

Jim Moore, former Director of Workforce Development at Sun Microsystems

in his address to the 2001 SHRM Annual Conference


8/23


Q. So, how do we organise all the shifts, trends,

speculation and forecasts into a framework

that can guide fruitful conversations between,

and strategic decision making by, senior line

managers and HR professionals?

A. Scenarios is one way


9/23


FOUR AUSTRALIAN SCENARIOS

FIRST GLOBAL NATION

Australia capitalises on

globalisation; promotes its

internal diversity and ethnic

tolerance; and boosts home-

grown innovation and industry

capability

SOUND THE RETREAT!

Globalisation stalls as political

and social structures are not

ready; trade barriers and

nationalism re-emerge; we

depend on bilateral national and

commercial relationships

BRAVE OLD WORLD

Complacent, dependent on

agriculture, tourism, new

manufacturing and somebiotech; clever people and

companies move overseas

GREEN IS GOLD

We emerge from the growing

imperative to protect the natural

environment as a leadinginnovator of global environmental

management

Source: Australian Business Foundation Alternative Futures: Scenarios for

Business in Australia to the Year 2015 Sept 1999


10/23


DEFENCE: In the Box Scenario Matrix

Open globalisedworld economy

Closed

protectionist

world economy

Social

polarisation

and exclusion

Global

middle

class

Source: Hardin Tibbs

report to Australian

Defence HQ 1999


11/23


DEFENCE: Way Out of the Box Scenario Matrix

Revolution inbasic science

Science

reaches a

plateau

Psycho-social

evolutionary

punctuationDiscontinuity in human

consciousness

Single

world

governmentSocial progress with

no discontinuity

Source: Hardin Tibbs

report to Australian

Defence HQ 1999


12/23


TWO SCENARIOS OF THE 21ST CENTURY ORGANISATION

MIT Initiative on Inventing the Organizations of the 21st

Century (January 1997) facilitated by Peter Schwartz of

the Global Business Network:-

http://ccs.mit.edu/21c/21CWP001.html

The scenarios were developed during 1994-1997 by MIT

academic and research staff in discussions with

hundreds of executives at various MIT Symposia,

executive education programs, etc.


13/23


FUTURE OF ORGANISATIONS: Scenario 1

SMALL COMPANIES,LARGE NETWORKS

Autonomous teams of 1-10 people

Temporary - task or project based

Linked by high bandwidth, electronic network

Venture capital infrastructure identifies promising teams and

provides financing

Independent organisations for social networking, recreation,

learning,reputation building and income smoothing

evolved from professional associations, unions, clubs,

university alumnis, neighbourhoods, families, churches

they are home for our identity as projects come and go

Examples: Film industry; Prato Mills (Italy); Nike; Nokia PC Display Division


14/23


Small Company, Large Network HR

Very specific HR scope focused on project organisation(e.g. talent scouting/selection, pay, health & safety)

Outsourced agents, brokers, specialist providers

contract staff organisations handle the HR for their talent

as part of their brand and competitive strategy

Mutual employment obligations spelled out in project

contracts or implicit in industry standards

or assumed from past working experience

Project Managers reputation depends on his/her people

skills and hence there is a reluctance to delegate to HR

specialists


15/23


16/23


FUTURE OF ORGANISATIONS: Scenario 2

VIRTUAL COUNTRIES Keiretsu-like alliances with operating companies in every country

Minimal national allegiance - primary loyalty is to the corporation

Traditional hierarchy or decentralised divisional structure

Company is the focus for individual identity

Company meets employees needs from cradle to grave

Employees own the firm AND have right to elect the Board and

management

Open book accounting informs management elections

Specialist organisational designers travel through firm brokering

partnerships and fostering cross boundary communication

Role of governments, industry unions is significantly reduced

Examples: Asea Brown Boveri; GE; Johnson & Johnson


17/23


Virtual Country HR

HR almost replaces social welfare, education systemsand provides financial management and estate planning

services, etc

Corporate (strategic) HR

sets standards and monitors the corporate culture helps Marketing build the corporate brand

Divisional (operational) HR total care of employees so they are free to focus on

performance

Actively involved in local communities to reinforce the

company culture and image


18/23


Virtual Country HR (cont.)

Selection emphasises fit with corporate values

Performance management focuses on results achieved

the XYZ way and on being a company ambassador in

all areas of life

Reward is via promotion, enhanced status, rights,

benefits - and pay

Development is via corporate colleges and universities in

partnership with the worlds best educational institutions

Innovation is through internal R&D and improvement

programs with heavy emphasis on protecting corporate

intellectual property


19/23


CHANGING HR ROLES: Some Generalisations

PAST

HR ROLE WAS CLEARLY

DIFFERENTIATED

mechanistic

(Personnel Admin) ritualistic, legalistic (IR)

CEOs eyes and ears

with the troops

distinct professional

career paths

HR is HRs responsibility

FUTURE

PEOPLE/LEADERSHIP ROLE IS

DISTRIBUTED AND DIFFUSE

knowledge management

relationship management;teamwork

legal compliance

change management

no distinct HR profession -

new hybrid roles emerge

People/Leadership is

everyones responsibility


20/23


NEW CRITERIA FOR RATING HR?

Profit generated per employee (compared to industry benchmark)

Salary/wages costs compared to industry median (reflecting

value of corporate reputation/intangibles in labour market)

Number of talented candidates applying for advertised (and

unadvertised) vacancies

Time taken to satisfy customer orders, inquiries, complaints

(compared to agreed service standards) Incidence of customer complaints caused by employee behaviour

Cost of re-work

Cost/risk due to time lost through injuries, absences, disputes

Rate/cost of unplanned turnover among good performers

Percentage of customers citing service quality or competent,

caring staff as a competitive edge for the company Net cost of generating organisational improvements

Percentage of revenue/profits coming from initiatives taken in

last 3 years

Share price premium compared to industry peers


21/23


AN INTEGRATING STORY?

OUTCOMES(Stakeholders)

Shareholder/

Investor

Customer

Contributor

- employee

- other

Community

FUNCTIONS(Management)

Finance

Investor Relations

Sales & Marketing

Operations

R&D

Contributor Relations

Contracts (Legal)

Supply

PR

Community Relations

ARCHITECTURE(Leadership)

VISION & MISSION

CORPORATE

STRATEGY

Competitive strategy

Development strategy

Leadership style

Culture/Values/Ethics

ORGANISATIONALDESIGN

Structure

Technology

Place


22/23


MAPPING YOUR ORGANISATIONS CURRENT TRAJECTORY

GetTalent MotivateTalent Reward/RecogniseTalent

Develop/SkillTalent

Tap/UtiliseTalent

Retain/TransitionTalent

2000s

1990s

1980s

1970s

1960s

Derived from an HR framework proposed by Brian Young PeopleFirst Solutions

Previously Asia Pacific HR Director for Deutsche Bank


23/23


MORE WINDOWS INTO POSSIBLE FUTURES

SOME WEB SITES ENGAGED IN THE SEARCH:

http://ccs.mit.edu/21c/index.html

http://www.foresight.gov.uk/default800.htm

http://www.defence.gov.au/nspb/htibbs-futuresV.4.ppt

http://www.dol.gov/dol/asp/public/futurework/welcome.html

http://www.fastcompany.com/

http://www.bsr.org/ and http://www.csp.uts.edu.au/

http://www-csc.mty.itesm.mx/~laava/KMetaSite/menu/sitemap.htm

http://www.managewithoutthem.com/

http://www.futurists.net.au

5 the future of hr dr peter saul power point presentation 2163

Documents