hr transformation: progress made but the journey continues

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HR Transformation: Progress Made But the Journey Continues. Neil Reichenberg IPMA-HR Executive Director. - PowerPoint PPT Presentation

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  • HR Transformation: Progress Made But the Journey ContinuesNeil ReichenbergIPMA-HR Executive Director

  • If HR professionals want to keep their jobs and increase their influence, they must focus less on what they do their processes and systems and more on the value they can deliver to the organization.David Ulrich

  • BackgroundWhy We Hate HR - 2005 Fast Company articleAfter close to 20 years of hopeful rhetoric about becoming strategic partners with a seat at the table where the business decisions that matter are made, most human resources professionals arent nearly there. They have no seat, and the table is locked inside a conference room to which they have no key. HR people are, for most practical purposes, neither strategic nor leaders.

  • BackgroundThe discipline I believe so strongly in is HR, and its the last discipline that gets funded. Marketing, manufacturing all these things are important. But more often than not, the head of HR does not have a seat at the table. Big mistake.Howard Schultz, Chairman, President, & CEO of Starbucks

  • BackgroundWhy Did We Ever Go Into HR?2008 article in the Harvard Business Review by two recent Harvard MBAs who work in HRHR today sits smack-dab in the middle of the most compelling competitive battleground in business, where companies deploy and fight over that most valuable of resources workforce talent.The long held notion that HR would become a truly strategic function is being realized.

  • World Public Sector Report2005 UN World Public Sector Report, Unlocking the Human Potential for Public Sector Performance called for a heightened role for those working in human resourcesStaff responsible for human resources should have real input into strategic decisions about staff management as well as decisions on how to achieve core objectives of government. This calls for the upgrading of the status and influence of human resource managers in organizational structures and decision-making processes in the public sector.

  • State of HRMost organizations recognize their employees as their most important asset. The right talent is the fundamental building block when it comes to creating an organization capable of innovating and changingEd Lawler, Director, Center for Effective Organizations and Professor, University of Southern CaliforniaHR is the only department that has the people of the organization as its primary missionThe recession has resulted in a short-term focus on reducing costs - this should not result in abandoning longer-term workforce and succession planning efforts

  • How Are Organizations Treating Their Most Important Asset?Recent IPMA-HR survey showed agencies taking the following actions to address budget issues: Restricting travel 66%Hiring freeze 62%Pay freeze - 59%Reduce overtime - 56%Reduce training - 56%Layoffs -33%Change retirement plans - 21%

  • Employee EngagementWhy is it important?Employee engagement is associated with a range of positive outcomes at the individual and organizational levelsEngaged employees perform better, are more innovative and more likely to want to stay with their employerMain drivers of engagement are: meaningful work, senior management communication style and vision, supportive work environment, person-job fit, and line management style

  • Employee EngagementWatson Wyatt/WorldatWork survey found that due to actions taken by employers during the recession, employee engagement has declinedEmployee engagement has dropped 9% since last year for all employees & almost 25% for top performing employeesTop performing employees are 20% less likely to agree that they understand the link between their goals and the organizations goals

  • Employee EngagementDrop in employee engagement could have a detrimental impact on productivity, quality & customer serviceAs the economy recovers, there could be retention problems for employers, especially among top performersCompared with last year, top performers are 26% less likely to be satisfied with the opportunities for advancement & 29% say promotion opportunity would be a top reason for leaving

  • HR TransformationManaging and developing the organizational talent is of paramount importanceHR needs to shift focus to strategic activities that will add the most value and ensure that organizations have the right people, with the right skills in the right positions, at the right timeHR needs to avoid falling into the trap of changing names and delivery mechanisms that result in providing the same HR services

  • HR TransformationHR needs to continue to provide the basic human resource services on which their organizations dependIf these are not done well, HR department will lose credibility & it will be more difficult to move to a more strategic roleThere has been a move towards shared service centers that are established to handle HR transactional work

  • HR TransformationIt is a challenge to find time to move to a more strategic role, while continuing to provide high quality HR transactional workHuman resource management is an organizational responsibility and not just the work of the HR departmentHR professionals should be consultants to the line managers and supervisorsHR needs to understand the business of the departments within the organization

  • 1*Changing Roles of HR Management

  • HR TransformationChartered Institute of Personnel & Development (CIPD) in Great Britain study found HR plays multiple roles in organizationsRecruit & retain key staffDevelop employee competenciesImprove the way in which people performance is managedMaximize employee involvement/engagementImprove employees focus on key business goals

  • HR Transformation81% of CIPD survey respondents reported the structure of the HR function has changedTop reason was the desire for the HR function to become a more strategic contributorNeed to improve services, increased business focus, & cost reductions were other reasons cited

  • HR TransformationCompared to a similar survey three years earlier, HR staff has cut by a quarter the amount of time they spend on administration & almost doubled the amount of time devoted to strategic mattersHowever, HR function is still mired in transactional work5% see HR administration as most important activity, yet 52% said it was most time consumingDeveloping HR strategy most important activity cited by 64% of respondents, but only 28% say they spent the most time on it

  • HR TransformationIPMA-HR study found the key enablers of transformation are:Strong management supportStrong internal skillsAppropriate funding levelsHighly integrated IT systemsShared services

  • HR TransformationIPMA-HR study found the key barriers to transformation are:Lack of fundsLack of management supportPoor IT systemsLack of skills/capabilities

  • HR TransformationIPMA-HR study found that organizations are measuring transformation success by:Higher customer satisfaction (only 37% conduct internal customer satisfaction surveys)Cost reductionsHigher retention

  • IPMA-HR ModelTo assist HR professionals to transform the HR function, IPMA-HR has established a competency model containing 20 competencies that serve as the foundation for HR professionals as they execute their work inside four major roles: HR ExpertBusiness PartnerChange AgentLeadershipIPMA-HR has a training program, Developing Competencies for HR Success designed to assist HR professionals with becoming business partners, change agents, and leaders within their organizations

  • IPMA-HR MODELHR ExpertBusiness PartnerChangeAgentLeadership

  • Shaping Up: Evolving the HR Function for the 21st Century, conducted by Deloitte, the authors concluded:HR is at a turning point. During these times of rapidly changing economics, we believe HR is faced with a stark choice. It can either evolve and make a significant contribution, or be diminished and dispersed into the business.

  • ConclusionHR is moving in the right direction, although more needs to be accomplishedOrganizations are at different stages of transformationHR profession needs to continue evolving & focusing on important contributions it can make to the organizationNo simple answer nor is there a one-size-fits all approach that will work across organizationsHR needs to develop better measures of its effectiveness & impact

  • Additional InformationFor additional information, please contact:Neil ReichenbergExecutive DirectorIPMA-HRnreichenberg@ipma-hr.org

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