Why is investment in HR not delivering its potential ROI ?

Chris Roebuck, Visiting Professor of Transformational Leadership, Cass Business School, London

Critical questions

Why has the great strategic and operational work that HR delivered not delivered the benefit it could have ?

How can we make sure it does ?

And get HR the credibility it deserves ?

3

2004 – the moment of truth !

HR CAN ONLY ENABLE SUCCESS THROUGH OTHERS

HR is at a critical moment

• + CEOs /Boards now accept importance of HCM• + Capability in HR is growing • + HR is getting better at strategic interventions• - Change has been forced on organisations by

market and economics. • - Internally organisations have not changed

enough • - Finance sees itself as a change driver

55% : more work than time

THE WORLD HAS CHANGED

40%SKILLS

CULTURE

60% want to give their best42% say the organisation STOPS them.

40% my boss is not good

workplace pressure led to bad behaviour with friends & family

59%

LEADERSMUST CHANGE

BUT NEED HR HELP TO DO IT

IMAGINE ...

MOTIVATED

INSPIRED

BEST BOSS

You having a BEST BOSS

and being a BEST BOSS

or INFLUENCER

Everyone

is a leader

of others

Emotion is key

• Decision to give high performance is 57% rational / 43% emotional• Line manager accounts for 80% of the emotional !

IN ONLY 2 STEPS

Inspiring & enabling best performance :

19

BELIEF

FAIRNESS

SIGNIFICANT

PROVEN

30% more effort from 60% of people

Asking me for my ideas Was fair Led by example Was honest

Acted with integrity Respected me as a person & professional

Praised and encouraged me Backed me up when requiredListened to me

Backed me up when required Empowered me and let me get on with things Inspired me

Made me part of a mutually supportive team Developed my skills and my career

Showed they cared Didn’t blame me for genuine mistakes Set realistic but challenging targets

Kept me informed about what’s going on Explained how we fitted into the bigger picture

Then focus that on

what REALLY MATTERSPURPOSE CONTEXTCOLLABORATION

“ITS ABOUT ‘WE’ NOT ‘ME’ !”

22

ONLY HR

CAN LEAD THIS

TRANSFORMATION

Key ideas • No matter how good :

– The strategic and operational HR work – The Board buy in – The volume of downward communication

• It’s line manager skills and behaviour that delivers :– Financial performance– Customer service – Risk management – Brand image – Cost efficiency– Innovation – Constant change and improvement

24

“Why should people care about you or the organisation or its customers if YOU and the ORGANISATION don’t show them you care about them ?”

25