heckelman & unger - business acumen for strategic heckelman & unger

Business Acumen for theStrategic HR Business Partner

Wendy Heckelman, Ph.D. and Sheryl Unger, MILRWLH Consulting, Inc.2703 Cypress Manor

Suite 100Fort Lauderdale, FL 33332

954-385-0770www.wlhconsulting.com

[email protected]

Session Overview

� HR Function – Expectations and Needs

� What is Business Acumen?

� Why is it important to the HR Function?

� How to develop your Business Acumen� How to develop your Business Acumen

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Key Demands on HR

HR

Attract, Develop,

and Retain Talent

Align with the

Business

Manage Risk

HR Function

Business

Establish and

Maintain Culture

Understand the

Business

SHRM Foundation Leadership RoundtableWhat’s Next for HR

November 2010

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Why HR Business Acumen?

HR needs to do a better job of: � Understanding their clients' world

� Realizing the many influences affecting costs

� Proposing alternative solutions to business unit problems

Provides an opportunity to:

� Help drive profitability

� Help employees better understand their clients

� Helps leaders make better

� Quantifying human capital challenges

� Partnering with line leaders through mergers, acquisitions, and other organizational restructuring efforts

� Analyzing and tracking metrics that impact the business and improve decision making

business decisions regarding resource allocation to meet intended results

� Foster a more aligned business partnership

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Talent Needs of the HR Function

� Strategic Thinking and Value Creation:– Know the business

– Think strategically

– Create tangible business value

– Stay aligned with business strategy– Stay aligned with business strategy

� Business Acumen and Orientation: – Understand the business

– Think about the overall success of the business

– Apply functional expertise and provide solutionsSHRM Foundation Leadership Roundtable

What’s Next for HRNovember 2010

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Business Acumen Defined

Linking an insightful assessment of the external business landscape with the keen awareness of how money can be made…and then executing

External Pressures

made…and then executing the strategy to deliver the desired results.”

Ram CharanBestselling co-author of Execution

Internal Strategy Commercial

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HR Professionals Need to Know

Drivers of

Costs to the

Drivers of

Revenue

Costs to the

Company

How can you maximize human capitalto impact the balance sheet?

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Knowledge

1

Application

2

Results

3

Business Acumen in Action

Draw sound conclusions

from information

1

Take appropriate action steps

2

Execute effectively to

drive results for your organization

3

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3

Knowledge

Draw sound

1


� Understand your company's business model, structure, products and services, and competitive advantage - HOW YOU MAKE MONEY:

– Talking to people who are in the business– Asking questions

� Keep informed:– Company– IndustryDraw sound

conclusions from

information

– Industry– Financial Reports– Listen to investor relations calls (if applicable)– Participate in strategic planning sessions or any other "live

event" that will give you the latest company information– Competitive landscape

� Use meaningful data and analytics, i.e., other functions (finance, marketing, operations) that make the business case and discuss ROI

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1Application

Take

2


� Understand how the business and HR goals link to the overall company priorities

� Spend time ensuring your goals link to the business

� Solicit from others’ perspectives on problems and issues to ensure that alternate points of

Take appropriate action steps

and issues to ensure that alternate points of view are factored into the search for solutions

� Make data-driven decisions

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Results

Execute

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� Partner with business to execute human capital strategy plans

� Ensure stakeholders are aligned with efforts to maximize human capital

� Calibrate plans to meet goals or adjust to changes in the environment

Execute effectively to

drive results for your organization

changes in the environment

� Establish metrics that demonstrate how HR is:– Managing corporate resources– Improving bottom-line results– Moving beyond “reducing costs”

� Continuously engage stakeholders in the importance of maximizing human capital

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Average HR Partners

� Provide overall direction and support regarding strategic direction

� Share goals and targets

� Directive style versus engaging

Exceptional HR Partners

� Enhance direct reports’ understanding of their effect on company results and profitability

� Mentor and coach others on effectively integrating data into action plans

Differences between Average and Exceptional

� Directive style versus engaging direct reports in an inquiry into the drivers impacting sales and performance

action plans� Leverage team members’ business

knowledge to support others and achieve results

� Encourage and ensure people share and build on each others’ business knowledge, experience, opinions, and ideas

� Actively liaise and align with others across levels, divisions, functions, and departments

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Knowledge

1


� Understand the business’ operating cycle

� Takes responsibility for learning about, and being alert to, changes in the business

� Analyzes information to uncover trends and opportunities

� Uses data-driven business information to provide insights and recommendations to internal stakeholders / employees

� Identifies and develops HR solutions directly aligned with the business strategy1Application

Results

3business strategy

� Leverages the full range of HR knowledge, expertise, and resources to provide solutions that meet business requirements

� Aligns HR priorities with the business agenda

� Makes data-driven decisions

� Decisions demonstrate an understanding of the business

� Makes financially sound decisions

� Drives for measurable business outcomes

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Critical Metrics

EfficiencyResources used

by HR

EffectivenessChanges produced by HR

� Using HR dashboards / scorecards� Measuring turnover, attitudes, bench strength

� Cost-benefit analysis� Financial efficiency of HR Operations (cost-per-hire

time-to-fill, training costs)� Benchmarks against data from other organizations

Changes produced by HR programs

ImpactThe business or strategic value created by the HR

activity / program

� Measuring the effect of HR programs on business outcomes

� Supporting organizational change efforts� Connecting human capital practices to organizational

performance� Assessing the feasibility of new business strategies

� Measuring turnover, attitudes, bench strength� Measuring the specific effects of HR programs

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Getting Started

� Assess your own capabilities related to business acumen

� Identify potential developmental activities to incorporate into your IDP to improve your business acumen

� Work with other HR colleagues to evaluate the functions’:

– Business acumen; especially use of evidence-based metrics

– Responsiveness to business needs– Direct support of business strategy

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Questions and Answers

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WLH Consulting, Inc.WLH Consulting, Inc.

OverviewOverview

2703 Cypress Manor2703 Cypress ManorSuite 100

Fort Lauderdale, FL 33332954-385-0770

www.wlhconsulting.com

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WLH Practice FocusStrategy Development and ExecutionStrategy Formation

Senior Team Alignment

Execution Planning and Implementation

Mergers and Acquisitions

Business Planning and Resource Allocation

Business Performance ImprovementBusiness Diagnostics

Organizational Design and EffectivenessOrganizational Design and Effectiveness

Process Excellence

Cultural Transformation and Change Management

Human Capital Strategy

Leadership Development

Competency Models and Tools

Talent and Development Planning

Engagement and Retention

Learning Strategy and Curriculum Design

Blended Learning Solutions

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WLH Business Acumen Offerings

Our customized consulting practice can partner with you to:� Customize the Business Acumen Program for HR employees

� Adapt the Business Acumen Program for other functional areas

� Provide consulting services and programs to improve:

‒ Managing Teams‒ Managing Teams

‒ Jump Starting Teams

‒ Consulting Skills: Delivering Value to your Clients

‒ Business Planning and Resource Allocation

‒ Coaching for High Performance

‒ Rx for Retention

‒ Increasing Efficiency While Reducing Costs

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WLH Team

Our team combines the diverse expertise of:� Ph.D. industrial/organizational psychologists

� Experienced consultants with 20+ years experience partnering with clients to develop strategies, engage in process reengineering, and mutually execute business solutions

� Experts in developing comprehensive human capital strategies and � Experts in developing comprehensive human capital strategies and tools

� Designers and developers of integrated, blended learning systems

� Skilled facilitators to help participants successfully manage change, identify issues, and resolve problems

� Trained project managers for large scale client initiatives

Unique talents + Collaborative expertise = Breakthr ough ResultsUnique talents + Collaborative expertise = Breakthr ough Results

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CollaborativeWe partner to implement streamlined, customized, and efficient solutions that deliver results

WLH Advantage

Highly AdaptiveOur flexibility allows us to adjust to changing needs throughout each engagement or project life cycle

We rely on proven methods for data collection, statistical analysis, and sophisticated organizational development models

Scientifically Rigorous

Client-Centered We take pride in "going the extra mile" to ensure that change initiated becomes change sustained

life cycle

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Partial Client List

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The International Division of a global pharmaceutical company asked WLH to help it create and deploy a human capital strategy aimed at attracting, developing, and retaining the best managers and employees in its various country markets:

� Defined and validated the key leadership capabilities to support its new mission and strategic objectives.

� Launched a talent planning process to target specific candidates for development.

� Turned capabilities into a 360°Developmental Planning and Feedback Process.

� Created innovative, intense discovery-based workshops to train managers to accelerate

Human Capital Strategy

� Created innovative, intense discovery-based workshops to train managers to accelerate development of these capabilities.

� Created learning modules (print, CD-ROM. Web-based) to strengthen leadership capabilities at the team level and linked them to improved business performance.

� Implemented retention strategies to keep high-potential managers.

� Created metrics to gauge success of the talent planning initiative.

� Developed learning curriculum aligned to capability model.

� Created Development Planning Guides to support the ability of managers and colleagues to identify developmental needs and match meaningful learning approaches.

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Human Capital Strategy Projects

Customized Learning Programs:

� Rx for Retention : designed a training program for managers to identify “at risk colleague departure” and strategies to retain talent

� High Performers Workshop : designed and delivered a one-day program to support a manager’s ability to:one-day program to support a manager’s ability to:

‒ Share feedback on strengths and opportunities for development‒ Support the creation of Individual Development Plans‒ Coach direct reports to achieve career and development goals

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WLH partnered with a major pharmaceutical company to transform leadership capabilities development into an easy, practical process that line leaders could use to produce immediate, visible improvement in business unit effectiveness.

� Provided a flexible, easily accessible range of activities designed to “push” the practice of leadership competencies down into business units so that they become a “way of life” and are the preferred approach for meeting business objectives.

� Created a Manager’s Toolkit to accelerate practice of the leadership capabilities:

Leader-Led Learning

� Created a Manager’s Toolkit to accelerate practice of the leadership capabilities:

– Learning activities in each of the modules focus on specific leadership behaviors.– Modules are designed to specifically reinforce corporate strategy.– Assessment checklists created for line managers to quickly and accurately

identify which of the leadership behaviors they wanted to concentrate on developing with their work teams in order to improve performance.

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