the jamaica employers’ federationconvention.jamaicaemployers.com/pdfs/2011/thursday/milton...
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THE JAMAICA EMPLOYERS’ FEDERATION
“From organizational Cinderella to valued Business Partner: How to get your HR Strategies noticed and
supported” Milton J. Perkins, PhD (Student), MSHRM, SPHR, CPC
Senior Director, Workforce Consulting SolutionsAgile•1
Dallas, [email protected]; www.agile1.com
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Objectives• Be interactive and have fun• Discuss strategic planning methodologies aligned with organizational goals• Learn how to transition HR from Cinderella to a valued business partner
By the end of this session, participants will be able to…
• Define and describe organizational strategy and recognize the major components of a good organizational strategy• Create an HR strategy that is linked to an organizational strategy• Create an HR strategy implementation plan in order to execute strategy
Definition of Strategy
• A strategy is a long-term, systematic plan of action designed to achieve particular goals, requiring directional decisions, purposes, and mission
• Strategy drives:1. How we compete
2. How we create value
3. How we allocate scarce resources
4. How we make choices
Questions that a Strategy Answers
• Who are we as an organization? • What should we be doing as an organization?• What are the needs or problems that require our existence
both today and tomorrow? • How do we recognize these problems? • What makes us distinctive or unique?• Where is our organization now?• Where does our organization want to go?• How will we get there?
Five Types of Organizational Strategies
• Cost Leadership Strategy• Product and Service Differentiation Strategy• Customer Intimacy Strategy• Talent Resource Strategy• Innovation Leader Strategy
Cost Leadership Strategy
• Focus is on lowest cost• Requires increases in operational efficiency and cutting of
costs• Assumes customers are more price sensitive than brand loyal• Centers HR strategy on short-term performance measures of
results
– Efficiency and productivity– Centralized decision making– Process improvements
Product/Service Differentiation Strategy
• Creates the perception of a unique product or service
• Assumes consumers will pay a premium price• Centers an HR strategy on brand name, long-
term performance
– Incentives for creativity and innovation– Selecting and retaining most creative
• External hiring to bring fresh perspectives• Retaining high-impact, at-risk employees
Customer Intimacy Strategy• Focuses on knowledge of customer needs and relationship
management.• Leverage knowledge of customer to make
recommendations on more goods or services that would be of interest.
• Centers an HR strategy on technical expertise related to the customer’s industry, specific business issues, and collaborative problem solving.
– Selecting and retaining employees with in-depth industry experience, contacts/relationships with similar types of organizations, extensive “system thinking” skills.
• External hiring to bring most up-to-date technical skills• Retaining technicians first, everyone else second
Talent Resource Strategy
• Employees are the product• Requires excellent execution and little room
for error• Centers an HR strategy on getting and keeping
the talent that fits a best “value” model– Find the best available talent to meet
organizational objectives– Closely measure performance, provide incentives,
train, and develop top performers
Innovation Leader Strategy
• Develop products that will be leading or cutting edge in the marketplace
• Not cost leadership and often not differentiation• Market targeting first-adopters• Centers an HR strategy, knowledge, creativity and
performance
– Incentives for creativity and innovation– Selecting and retaining the most creative
• External hiring to bring fresh perspectives• Retaining high-impact, at-risk employees
Exercise #1: Who Do You Know?D
ifferentiation
CostLow
Low High
Exercise #2: What type of strategy does your organization represent?
Cost Leadership Strategy
Product/Service Differentiation
Strategy
Customer Intimcacy Strategy
Talent Resource Strategy
Innovation Leader Strategy
Don’t Know
Discussion: What is SWA’s Value Proposition?
The SWA Value Proposition
Value converted by management
Value created for employees
Value captured for shareholders
COMPETITIVE ADVANTAGE
Organizational Life Cycle
Introduction Growth Maturity Decline
Crisis:Leadership
Need:Creativity
Crisis:
Delegation
Need: Cleardirection
Need:Formal systems
Crisis:
Bureaucracy
Crisis: Changeresistance
Need:• Streamlined
decision making• Flexibility• Small-organization
thinking
Overall Strategic Planning Phases
• Phase 1: Environmental Assessment – Environmental Scan– Environmental Forecast
• Phase 2: Customer/Market Analysis• Phase 3: Organizational Assessment• Phase 4: Mission/Vision/Corporate Values• Phase 5: Strategic Issues, Questions, and Goals • Phase 6: Plan Implementation
Phase 1: Environmental AssessmentSteps: If building a new strategic plan Data Examined
• Step 1: Conduct Environmental Scan (a.k.a. “PEST Analysis—Political, Economic, Social, and Technological”) • Step 2: Conduct Environmental Forecast
• External Mandates/Regulations• Industry Structure• Technology• Market & Economic Trends
Steps: If building an existing strategic plan Outputs
• Step 1: Review Past Strategic Plans and guiding documents• Step 2: Determine which components are re-usable, which need updating (or are missing), and if additional environmental scanning is required
• Environmental Report, which includes:
> Results of Environmental Scan> Results of Environmental Forecast> Prioritized list of external mandates> Prioritized list of competitors> Description of market, technological,
and economic trends
Phase 1: Environmental AssessmentSteps: If building a new strategic plan Data Examined
• Step 1: Conduct Environmental Scan (a.k.a. “PEST Analysis—Political, Economic, Social, and Technological”) • Step 2: Conduct Environmental Forecast
• External Mandates/Regulations• Industry Structure• Technology• Market & Economic Trends
Steps: If building an existing strategic plan Outputs
• Step 1: Review Past Strategic Plans and guiding documents• Step 2: Determine which components are re-usable, which need updating (or are missing), and if additional environmental scanning is required
• Environmental Report which includes:
> Results of Environmental Scan> Results of Environmental Forecast> Prioritized list of external mandates> Prioritized list of competitors> Description of market, technological,
and economic trends
Phase 2: Customer/Market AnalysisSteps Data Examined
• Step 3: Compile list of external stakeholders and assess their power and influence on the organization.• Step 4: Conduct assessment of all current and potential customers and segments by market.• Step 5: Conduct assessment of all competitors by market segment.
• External Stakeholders• Competitors• Customers
Outputs
• Prioritized list of external stakeholder• Market analysis report
Phase 3: Organizational AssessmentSteps Data Examined
• Step 6: Collect data on internal mandates, stakeholders, history, resources, culture, etc. via document reviews, focus groups, interviews, etc.• Step 7: Initiate and lead strategic planning session #1 with organizational leaders. Review all data and conduct SWOT analysis brainstorming session.• Step 8: Compile SWOT Matrix based on data from strategic planning session 1.
• Financial/ Physical/ Human Resources• Technological Resources• Culture/ Power Dynamics/Politics • Structure• Decision-Making Processes• Past Strategy and Performances• Work Systems
Outputs• Completed Mandates Matrix• Completed Stakeholders Matrix• Prioritized list of resources• SWOT matrix• Brief organizational history• Report on cultural, political, decision-making issues
Phase 4: Mission/Vision/Corporate ValuesSteps Data Examined
• Step 9: Initiate and lead strategic planning session #2 with organizational leaders. Craft/revise mission, vision, and corporate values statements.
• Environmental Report• Market Analysis• Lists of Mandates• Organizational History
Outputs
• Mission Statement• Vision Statement• Values Statement
Source - http://www.cprs.org/membersonly/Sum00_VisionMission.htm
Phase 5: Strategic Issues, Questions, and Goals
Steps Data Examined
• Step 10: Initiate and lead strategic planning session #3 with organizational leaders to create strategic issues, questions, and goals.
• SWOT matrix • Mission, Vision, and Values Statements
Outputs
• Strategic Issues• Strategic Questions• Strategic Goals
Phase 5: Strategic Issues, Questions, and Goals
Steps Data Examined
• Step 10: Initiate and lead strategic planning session #3 with organizational leaders to create strategic issues, questions, and goals.
• SWOT matrix • Mission, Vision, and Values Statements
Outputs
• Strategic Issues• Strategic Questions• Strategic Goals
Phase 6: Plan Implementation
Steps Data Examined
• Step 11: Write first draft of strategic plan.• Step 12: Review and finalize with organizational leaders.• Step 13: Plan for communication, dissemination, and execution of plan.
• All data collected to date
Outputs
• Draft Strategic Plan• Final Strategic plan• Communication/Dissemination Plan• Execution Plan
Strategic Plan Components—Example
25
Corporation XYZ Environmental Assessment Results (Phase 1)
Description of market, technological, and economic trends
– “…The report indicates momentum is growing for national limits and penalties on emissions of greenhouse gases and air pollution blamed for global warming. There are many unknowns, especially when it comes to the potential speed and severity of federal limits on greenhouse gases. Also looming are government mandates that utilities embrace solar, wind, and other renewable forms of energy.”
Corporation XYZ PEST Results (Phase 1)PEST Areas Description of Issues
Political • Increased pressure from all national governments to reduce greenhouse gases and to increase the safety of electrical production
• Increased government regulation on utility tariffs
Economic • Highly volatile markets for natural resources used to produce electricity (fossil fuels, natural gas, etc.)
Social • Rising standard-of-living expectations throughout the world leading to increased demand for electricity
Technology • Push for new and innovative alternative energy sources
Corporation XYZ Customer/Market Analysis (Phase 2)
• “With penalties on greenhouse gases expected within a few years, UtCo Utilities (UC) ranks among utilities that have the most to worry about. The city electricity provider, owning a pair of large and relatively young coal-powered plants, relies on the fuel to make more than 70 percent of its electricity.”
• “By comparison, the far bigger City Power & Light Co. makes about 6 percent of its electricity with coal.”
• “XYZ is pushing for limits on greenhouse gases. UC is not.”
• "It would be a very big impact to our customers if we had to reduce output of our power plants.”—UC’s Chief Executive Officer
Corporation XYZ Mandates Matrix (Phase 3)Formal Mandates Regulatory Agency Purpose
Gas and Electric Act, chapter 54:40
Federal Energy Regulatory Commission (FERC)
Establishes compliance standards to energy suppliers
Pipeline Development Guidelines
Department of Energy (DOE)
Creates limits on private sector access to international pipelines
Energy Regulation Code 72.921
Code of Federal Regulations (CFR)
Designates off-shore drilling access
Taxation Restructuring Act of 1992
Federal Energy Management Program (FEMP)
Specifies tax rates on drilled petroleum
Corporation XYZ Stakeholder Matrix (Phase 3)
Direct Influence Indirect Influence
High Power
• XYZ’s executive management team• Department of Energy (DOE)• Federal Energy Regulatory
Commission (FERC)• XYZ Trade Union
•Federal Energy Management Program (FEMP)
•XYZ stockholders
Low Power
•XYZ employees•XYZ customers•State Regulators
•Developers of alternative energy sources
•External consultants•Smaller, less competitive energy
companies•Local newspapers
Corporation XYZ: SWOT Matrix (Phase 3)Future Quadrant
Opportunities • Renewed public interest in utility companies• Deregulation has provided opportunities to growStrengths• Credibility and good reputation• Price and service excellence
Internal Fix-It QuadrantOpportunities • Renewed public interest in utility companies• Deregulation has provided opportunities to growWeaknesses• Financial statement expectations too high• Lack of oversight by management
External Fix-It QuadrantThreats• Competitors are stealing strategic partners• Energy market could be regulated againStrengths• Credibility and good reputation• Price and service excellence
Survival QuadrantThreats• Competitors are stealing strategic partners• Energy market could be regulated againWeaknesses• Financial statement expectations too high• Lack of oversight by management
Source: Heinz Weihrich, The TOWS Matrix: A Tool for Situational Awareness ©1982 All rights reserved.
Corporation XYZ Mission/Vision Statement (Phase 4)
• A Vision: “Wouldn’t it be cool if everyone in the world could access reliable energy resources that had minimal environmental impact, and was charged to customers based on what they could afford to pay?”
• Vision Statement: To provide every family on earth access to reliable energy resources at a reasonable cost while continuously reducing the harmful effects of energy production on the environment.
• Mission Statement: To provide our customers with safe, reliable, innovative, efficient, and environmentally friendly energy solutions.
Corporation XYZ Value Statements (Phase 4)
• Respect – We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness, and arrogance don’t belong here.
• Human Rights – We do not and will not tolerate human rights abuses of any kind by our employees and contractors.
• Safety – We are committed to operating and conducting business worldwide in compliance with all applicable environmental, health, and safety laws and regulations.
• Compliance – We are dedicated to conducting business according to all applicable local, state, and international laws and regulations, while following the highest professional and ethical standards.
Corporation XYZ Strategic Issue and Question (Phase
5)• Strategic Issue:
– “Increased regulation of utility companies coupled with weak management oversight may lead to excessive number of fines and penalties being levied against the organization.”
• Strategic Question:– “Given the high earnings expectations that have been
placed on XYZ, how can we improve our management oversight in order to ensure we do not experience a rise in fines and penalties associated with regulatory violations?”
Corporation XYZ Strategic Goals (Phase 5)
• To fulfill our mission in order to maintain the public’s trust and confidence
• Increase our presence in political circles in order to influence future regulations
• Expand customer outreach through targeted marketing and public relations
• Increase oversight skills of managers• Embed compliance throughout our corporate culture• Create performance targets in all areas related to
regulatory compliance• Benchmark against the targets and continuously improve
Corporation XYZ Plan Implementation (Phase 6)
Goal Sub Tasks By When Lead Resources
Expand customer outreach through targeted marketing and public relations
Conduct market research
6/16 Gary $100,000
Create customer database
9/12 Erum $25,000PC Upgrades
Hire a PR person
9/1 Kate Salary for one FTE
Ethics: The Cause of Ethical Dilemmasin Organizations
• Respect – We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness, and arrogance don’t belong here.
• Human Rights – We do not and will not tolerate human rights abuses of any kind by our employees and contractors.
• Safety – We are committed to operating and conducting business worldwide in compliance with all applicable environmental, health, and safety laws and regulations.
• Compliance – We are dedicated to conducting business according to all applicable local, state, and international laws and regulations, while following the highest professional and ethical standards.
Ethics:Ethical vs. Legal
The Same?
or
Different?
Ethics: The Ethics/Legal MatrixLE
GA
L
ETHICAL
Legalbut
Not Ethical
Legaland
Ethical
Not Legaland
Not Ethical
Not Legalbut
Ethical
Cascading Metrics
Developing Metrics
• Points to remember when developing metrics:– What is easy to measure does not equate to what
is important to measure.– Important to obtain buy-in and agreement on
developed metrics.– Must have a means of tracking developed metrics.– Quantify to the best of your ability or secure
outside counsel to assist
How to Measure Metrics
• Use questionnaires or instruments that characterize and quantify selected data.
• Partner with outside consultants or internal finance practitioners to quantify
• Interview management on their observations.• Do a document review, such as:
– Customer feedback reports– Internal budgets– Current job performance measurements– Marketing’s ROI
The Sequence of Choosing Metrics1
Absolute StandardsExample: “I want to lose 10 pounds”
Relative StandardsExample: “I want to weigh less than my neighbor Bob”
Objective MeasuresExample: Average number of hours to return customer phone calls.
#1 ChoiceExamples:• Build 10 widgets per hour.• Call customers within 24 hours of receiving request.•Complete all projects by deadline.
#3 ChoiceExamples:• Build 10 more widgets than Bill.• Call customers at least 1 hour faster on average. than all the other customer service representatives.• Complete projects faster on average than other regions.
Subjective MeasuresExample: Average customer satisfaction score on a survey.
#2 ChoiceExamples:• Have 90% of Acme customer agree that they like our widgets.• Receive 80% approval rating from students related to coaching engagements.• Supervisor “strongly agrees” that all projects are accurate.
#4 ChoiceExamples:• Acme customers are at least 15% happier than competitor customers.• Receive the highest satisfaction rating among all coaches to get a 5.• Receive the highest supervisor accuracy assessment among all detachments.
1“Data Collection and Assessment—Finding the Right Tool for the Job” by Ethan S. Sanders in ASTD Models for Workplace Learning
Example Metrics
Customer Perspective
X% of customers indicate a “high” or greater level of satisfaction
Reduce the number of customer complaints by X%
Financial Perspective
Increase the amount of returns/revenue by X%
Reduce the amount of labor hours expended on administrative functions by X%
ProcessPerspective
Reduce the # of errors identified during the process by X%
Reduce process inconsistencies across programs by X%
Innovation & Learning
20% of employees’ performance scores will be tied to obtaining at least X hours of applicable professional development each year
40% of managers’ performance scores will be tied to the development of their reports, as evidenced by additions to Skills Database
Aligning HR - What is HR Strategy?
• The HR strategy is the application of the organizational strategy to the HR function. The HR function may have its own mission, vision, and values and will set its own goals that ensure success of the organization’s strategic plan goals
• HR strategy is about people and human capital
• How organization accomplishes its goals through people
How Organizational Goals Affect HR Goals
HR Strategy
Talent Acquisition• Goals• Metrics• Plans
Performance Management• Goals• Metrics• Plans
Talent Engagement• Goals• Metrics• Plans
Organizational Goals:1) Triple the Number of Retail Stores by Opening New Stores2) Triple the Number of Retail Stores by Acquiring Competitor 3) Retain Critical Employees During Restructuring of Stores
Global Trends Affecting Human Resources
StrategicHRM
GlobalizationDemographicsand Diversity
Technological Advancement
Outsourcing
Changing Worker Attitudes/Values
Major Objectives of an HR Strategic Plan
• Ensure the organization has the right employees with the right skills in the right places at the right times
• Prevent overstaffing and understaffing• Ensure the organization is responsive to
changes in its environment• Provide direction and coherence to all HR
activities and systems• Unite the perspectives of line and staff
managers
HR Strategic Plan Steps• Step 1: Getting the Big Picture
– Organizational Background
• Step 2: Conduct an HR SWOT Analysis– Review of Organizational SWOT Analysis
• Step 3: Develop an HR Mission and Vision Statement
• Step 4: Conduct a Detailed Human Resources Analysis– Identification of Future Human Resource Systems
• Talent Acquisition, Performance Management, Total Rewards, Training & Development, and Talent Engagement Systems
– Review of current Human Resource Systems• Talent Acquisition, Performance Management, Total Rewards, Training &
Development, and Talent Engagement Systems
• Step 5: Determine Critical People Issues– Formation of Critical HR Issues (based on gap)
• Step 6: Develop HR Goals, Metrics, Consequences, and Solutions
• Step 7: Implementation and Evaluation of the Action Plans
Step 1: Getting the Big PictureProcess Data Examined
1. Assess all work completed in the organizational strategic plan
2. Review additional organizational documentation if necessary
3. Identify the organizational context which influences the HR strategy
• Organizational strategic plan
• Strategic plan supplemental materials
Outputs
• Background section of HR strategic plan that summarizes the organizational context as it relates to HR strategy
> Need for a plan> Organizational goals addressed> Organizational context that influences HR
strategy (values, ethics, etc.)
Step 2: Conduct an HR SWOT Analysis
Process Data Examined
1. Review the organizational SWOT analysis conducted
2. If an organizational SWOT has not been completed, collect required data to complete a SWOT analysis of the organization as described in Module 1
3. Identify the SWOT context which influences the HR strategy
• Financial/ Physical/ Human Resources
• Technological Resources
• Culture/Power Dynamics/Politics
• Structure
• Decision-Making Processes
• Past Strategy and Performances
• Work Systems
• Compliance
• Labor Relations
• Labor Laws
Outputs
• SWOT analysis describing strengths, weaknesses, opportunities, and threats which directly or indirectly effect the people side of business.
Step 3: Develop an HR Mission Statement or Statement of Intent
Process Data Examined
1. Initiate and lead a strategic planning session with HR leaders to review/ assess the organizational mission statement and vision statement
2. Craft/revise an HR mission and vision aligned with organizational mission, vision, and corporate values statements
• Organizational Mission Statement
• Organizational Vision Statement
• Corporate Value Statement
Outputs
• HR Mission Statement
• HR Vision Statement
Step 4: Conduct a Detailed Human Resources Analysis
Process Data Examined
1. Initiate and lead an HR strategic planning session with HR leaders to identify current and future HR requirementsa. Talent Acquisition Systems
b. Performance Management Systems
c. Total Rewards Systems
d. Training and Development Systems
e. Talent Engagement Systems
• Culture
• Organization
• People
• HR Systems
Outputs
• List of future HR System Requirements
• List of current HR Systems Specifications
Step 5: Determine Critical People IssuesProcess Data Examined
1. Conduct a gap analysis between the current HR systems and future requirementsa. Talent Acquisition Systems
b. Performance Management Systems
c. Total Rewards Systems
d. Training and Development Systems
e. Talent Engagement Systems
2. Formulate and prioritize critical people issues identified from gap analysis
• Culture
• Organization
• People
• HR Systems
Outputs
• Gap analysis report
• List of critical HR issues
Step 6: Develop HR Goals, Metrics, Consequences, and Solutions
Process Data Examined
1. Initiate and lead strategic planning session with HR leaders to create HR goals and metrics
• SWOT analysis
• Mission, vision, and value statements
• Gap analysis report
Outputs
• Strategic HR Goals
• Strategic HR Metrics
• Prioritized List of HR Solutions
• List of Potential Consequences
Step 7: Implementation and Evaluation of the Action Plans
Process Data Examined
1. Write first draft of the HR strategic plan
2. Review and finalize with HR leaders
3. Plan for communication, dissemination, and execution of plan
• All data collected to date
Outputs
• Draft Strategic Plan
• Final Strategic plan
• Communication/Dissemination Plan
• Execution Plan
Five Major Components of an HR Strategy
Topics
Talent Acquisition
Performance Management
Total Rewards
Training and Development
Talent Engagement
HR Strategic Plan Components—
Example
Corporation XYZ: Background Section (Step 1)
XYZ’s HR strategic plan has been developed to ensure alignment between the organizational mission, vision, and strategic goals and HR’s strategic directions and initiatives. It is imperative that our HR strategic direction fully supports and contributes to the success of the organization through our clearly articulated and well thought out HR strategies. The following organizational goals will be addressed in XYZ’s HR strategic plan:
– To fulfill our mission in order to maintain the public’s trust and confidence– Increase our presence in political circles in order to influence future
regulations– Expand customer outreach through targeted marketing and public
relations– Increase oversight skills of managers– Embed compliance throughout our corporate culture– Create performance targets in all areas related to regulatory compliance– Benchmark against the targets and continuously improve
In developing the HR strategic plan, the organizational context that influences HR will be considered, including organizational values, ethics, etc.
Corporation XYZ: HR SWOT Analysis (Step 2)Strengths (Internal)
• High level of employee engagement • Employees provide excellent customer service• Strong and constructive corporate culture
Opportunities (External)• Deregulation has provided opportunities to grow the business and size of workforce• Excellent reputation as an “employer of choice” • Increased availability in key labor pools due to high unemployment rate
Weaknesses (Internal)• Lack of quality leadership training• Lack quality performance plans• Low satisfaction among employees that don’t fit the culture
Threats (External)• Increasing turnover rates to competitors • Unable to compete with compensation rates of competitors• Overseas competition using talented labor at far lower cost
Corporation XYZ: Mission and Vision Statement (Step 3)
• HR Vision Statement: We will be recognized as the premier HR organization by XYZ’s leadership and by the HR profession at large by providing our organization with a workforce that is second to none in our industry.
• HR Mission Statement: To hire, retain, engage, and
reward great people in order to provide our customers with safe, reliable, innovative, efficient, and environmentally friendly energy solutions.
Corporation XYZ: Human Resources Analysis (Step 4)
• Current HR Systems:– Talent Acquisition Systems: Hire for skill– Performance Management: Objective Based– Total Rewards: One-size-fits-all compensation– Training and Development: Focus on entry-level skill training– Talent Engagement: No strategy
• Future HR Systems:– Talent Acquisition: Person, Fit strategy– Performance Management: Objective + Behavioral based– Total Rewards: Individualize total compensation– Training and Development: Focus on Leadership Development in
conjunction with entry-level skill training– Talent Engagement: Move performers up or out
Corporation XYZ: Critical HR Issues (Step 5)• Our current talent acquisition strategy does not recruit for and select
individuals that fit within the corporate culture, which has led to increased attrition and lower employee satisfaction.
• Our current performance management system is objective based and does not account for employee behaviors, which has led to behaviors inconsistent with our corporate values.
• Our current total rewards system awards all individuals in the same manner, regardless of individual preference, which has led to the inability of our organization to compete with competitor compensation packages.
• Our training and development system is focused solely on entry-level skill training and does not develop our leaders of tomorrow, which has led to key high-level positions vacant with no immediate potentials for replacement.
• We do not currently have a talent engagement strategy in place, which has led to disengaged employees disrupting the work of high performers.
Corporation XYZ: HR Strategic Goals (Step 6)
• To develop and implement comprehensive recruiting, selection, and retention processes that effectively identify individuals that fit within the XYZ corporate culture.
• To develop and implement a performance management system that incorporates desired behaviors into measures of success.
• Expand our total rewards system to allow for individualized total rewards in accordance with employee preference.
• Create an internal succession plan that incorporates leadership development for high-performing employees.
• Institute an employee engagement strategy that will increase employee engagement and performance.
Corporation XYZ: HR Implementation Plan (Step 7)
Goal Sub Tasks By When Lead Resources
To develop and implement comprehensive recruiting, selection, and retention processes that effectively identify individuals that fit within the XYZ corporate culture.
Identify core values, behaviors, etc. expected of new hires
6/16 Gary Salary for one FTE
Create a new interview process for applicants
9/12 Erum $25,000
Develop a recruiting marketing campaign
9/1 Kate $200,000
Talent Acquisition• What is it? The process of attracting and recruiting the
best talent available for the organization.• Why is it important? Ensures that the organization has the
right people, with the right skills, who are in the right job, and are working against the right requirements.
• Benefits include…– Reduces the probability of costly turnover down the road– Increases the likelihood that new employees will reach required
performance levels sooner– Increases the likelihood of employee engagement
• Challenges include…– Accurately defining the job requirements– Finding the right candidates at the right price– Competition with other employers
Workforce Allocations Strategy
• What is it? A strategy for balancing between employees, contractors, temporary workers, free agents, and outsourcing.
• Benefits include…– Allows scalability of the workforce to meet customer demand– Provides “just in time” skill sets to meet specific project
requirements– Allows more flexible rate structures for getting work done at a
lower cost
• Challenges include…– Change mechanics of employee communications– Changes dynamic of employee relations– Must ensure fair treatment of contract and regular employees– Allows competitor to access specialized skill sets which reside in
temporary and outsourced talent
Person, Fit Strategy• What is it? A strategy for hiring people based on their “fit”
with the corporate culture.• Requires a belief that skills can be taught, while culture fit is
more inherent.• Benefits include…
– More favorable employee attitudes– More desirable individual behaviors– Reinforcement of organizational design
• Challenges include…– Lack of diversity– Lack of holistic thinking– Lack of fresh ideas– Legal ramifications
Major Considerations When Choosing a Talent Acquisition Strategy
• Recruiting and selecting prospective employees
• Bottom-line impact• Outsourcing and off-shoring staffing
decisions• Degree to which employees fit the culture
of the organization
Performance Management Linkages
Performance Management
How do we identify and
promote the high –performers?
Total RewardsHow do we ensure we sustain
competitive and fair compensation systems?
Training and DevelopmentHow do we continuously increase
the skills of the workforce?
Performance Management• What is it? A system which creates measurable
performance plans for employees, links these plans to business results, ensures timely and accurate feedback to employees, and continuously measures success. May also include a pay-for-performance system as well.
• Why is it important? Diminishes the subjectivity of performance ratings and ties rewards to the bottom line.
• Benefits include…– Seeks to ensure fair and equitable treatment based on
performance– Provides employees with constructive feedback on their
performance
• Challenges include…– Everyone wants a perfect score!– Must distinguish performance from conduct– Can become “all about pay” and nothing to do with performance!
Performance Management: Why Develop Performance?
Individual contribution drives organization!
Performance Activities
• Role accountabilities
• Job duties• Collateral duties
Individual Contribution
• Behavior• Knowledge• Skills• Attributes• Values
Organization Results
• Quality• Financial• Organizational capability• Stakeholder satisfaction
“What” we do to serve
stakeholders
“How” weserve stakeholders
Drive the “so-what” or
results of the effort
Stakeholder
Value
Total Rewards
• What is it? A system that calculates the monetary and non-monetary means for rewarding employees for their contributions.
• Why is it important? Supports the organizational strategy and culture. Impacts an employer’s ability to attract and retain employees who are loyal to the organization.
• Benefits…– Provides a total system picture of rewards– Helps employees understand the range of benefits they receive
• Challenges…– People place different levels of value on different types of rewards– “Equitable” and “fair” are sometimes juxtaposed to each other
Total Rewards Philosophy
• How does total rewards fit within the organizational, industry, and community context?– External competitiveness– Market dynamics– Internal equity
• What does the organization want to reward?• What types of total rewards will the
organization use or not use?
Total Rewards Strategies
• Strategy #1 Pay the person • Strategy #2 Reward excellence • Strategy #3 Individualize the pay system
Training & Development• What is it? A system that provides formal and informal
learning opportunities to the workforce in order to increase skills, build awareness, and increase performance.
• Why is it important? Regardless of how robust talent acquisition is, an ever-changing workplace requires new learning to occur continuously.
• Benefits include…– When applied correctly, it increases performance– Makes employees feel “invested in”– Creates learning networks and camaraderie among employees
• Challenges Include…– Learning is sometimes seen as a distraction from work– Building formal learning events is time consuming and expensive– Many employees may be apathetic towards training– Supervisors tend to “throw training” and every performance
problem
Tying T&D to Organizational Strategic Plans
• Focused and structured links between organization’s strategic mission/goals and T&D
• T&D goals and processes reviewed around changing strategic needs
• T&D integrated into strategic planning process
Learning Organization• Encourages systems thinking• Encourages internal and external networking• Embraces change• Adapts to changes in the environment
Average Direct Expenditure on T&D as Percentage of Payroll
ASTD State of the Industry Report 2008 pg. 10
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
BenchMarking Forum(BMF)
ASTD BEST AwardWinners
Average Industry(Including BMF and
BEST)
2007
Leadership Development
• Succession Planning• What is it we are developing?• Do our current leaders have buy-in to our
leadership development program?
Talent Engagement• What is it? The process of identifying and adjusting key
factors in the organizational environment that affect employees’ perceptions of the organization.
• Why is it important? Engagement is directly tied to performance. If employees do not feel valued and part of the organizational community, it is unlikely that they will perform up to their full potential.
• Benefits include…– Makes organization more competitive during recruiting– Ensures sustained employee commitment – Provide employees with the means to communicate their ideas– Increases performance, innovation, and employee retention
• Challenges include…– Identifying the true sources of discontent– Finding solutions that fit a variety of perspectives– Getting some leaders to support engagement solutions
ENTERHERE
IDENTIFYSTRENGTHS THE
RIGHT FIT
GREATMANAGERS
ENGAGEDEMPLOYEES
ENGAGEDCUSTOMERS
SUSTAINABLEGROWTH
REAL PROFITINCREASE
ACHIEVE MISSION
Employee Engagement: The Gallup Path
Source: The Gallup Organization, ©2008
Employee Engagement: Q12TM Engagement Hierarchy
Growth
What do I get?
What do I give?
Do I belong?
How can
we
grow?
Teamwork
Basic Needs
Opportunities to learn and growProgress in last six months
Best friendCoworkers committed to qualityMission/Purpose of organization
My opinions count
Encourages developmentSupervisor/Someone at work cares
Recognition last seven daysDo what I do best every day
Materials and equipmentI know what is expected of me at work
Source: The Gallup Organization, ©2004
Capturing the High Performers Strategy
• Re-recruit• Tell them where the organization is going• Thank them for their work• Outline why they are so important• Ask if there is anything you can do for them
Moving the Middle Performers Strategy
• Reassure the individual goal is to retain them• Support
– Describe their good qualities
• Coach– Cover development opportunity
• Support– Reaffirm their good qualities
Moving the Low Performers Up or Out Strategy
• Meet and deliver honest message• Describe
– Describe what has been observed
• Evaluate– Evaluate how you feel as the manager
• Show– Show what needs to be done
• Know– Know consequences of continued same
performance
Steps to Create an HR Implementation Plan
• Step 1: Prioritize key HR initiatives• Step 2: Identify major actions required for
key initiatives• Step 3: Identify required resources• Step 4: Identify change management,
communication, and risk issues• Step 5: Establish success measures
Step 1: Prioritize Key HR Initiatives
• Identify and confirm key HR initiatives that will be implemented
• Prioritize the key initiatives• Identify the general timeframe and
contingencies
Step 1: Prioritize Key HR InitiativesExample
HR Initiative Timeframe Contingencies
Institute a pay for performance system
6-9 months Must have a “plan B” if union approval is not gained.
Revise training program
12 months Must determine content requirements to address workforce needs
Improve talent acquisition process
3-4 months Must determine if additional funding can be acquired for specialized hires
Step 2: Identify Major Actions Required for Key Initiatives
• For each initiative identify the – Actions/Activities
• Steps within that activity• Outcomes
– Milestones
Step 2: Identify Major Actions Required for Key Initiatives
Example: Improve talent acquisition process
Steps Milestones Outcomes
1. Conduct a job analysis
2. Identify Applicant Pools
1. Conduct Focus Groups
2. Conduct Market Research
• Finalized Job Description by July 17• Completed Market Survey by July 24
Step 3: Identify Required Resources
• Assemble high-level team or steering committee– Estimate time commitment for the initiative– Determine financial requirements and sources – Identify key personnel and departments
Step 3: Identify Required Resources
Example: Improve talent acquisition process
Action Time Estimate Financial Requirement
Key Personnel and Departments
Job Analysis
4 Weeks $15,000 • Hiring Manager/HR Dept.• Functional Manager/Software Development• Subject Matter Experts/Software Development
Step 4: Identify Change Management, Communication, and Risk Issues
• Consider the many facets of “change management”
• Identify issues or barriers that may arise as a result of the key initiative implementation
• Determine who needs to be informed of changes and initiatives on the horizon and the most effective methods for communicating those throughout the organization
Step 4: Identify Change Management, Communication, and Risk Issues
Example: Improve talent acquisition process
How does this initiative represent change?
Issues/Concerns Mitigation Strategy
• Large number of new hires at one time
• New hiring process
• Being able to orient new hires in an efficient manner
• Employee concerns over why there is a surge in hiring
• Plan staggered schedule for new hires
• Conduct pilot on new hiring process
• Communicate that the reason for new hires is expansion, not downsizing
Step 5: Establish Success Measures
• Identify the key indicators of success• Identify how to measure progress toward
goals set forth in the HR strategic plan
Step 5: Establish Success MeasuresExample: Improve talent acquisition process
Short-Term Indicators
Long-Term Indicators Data Required
• Number of processes changed• Number of employees hired under new system
• Increase in productivity• Reduction in hiring cycle time• Employee satisfaction in hiring process
• Baseline productivity numbers• Baseline hiring cycle time
Lesson 2: Executing an HR Implementation Plan
• Considerations:– Role of the HR professional– Communicating the HR strategy– Managing resources– Managing change– Monitoring progress– Maintaining stakeholder involvement
Roles of the HR Professional
• Communication Advisor• Project Manager• Change Agent• Stakeholder Liaison
Communicating the HR Strategy
• Identify key messages• Identify appropriate audiences• Determine method of communication delivery• Create feedback mechanism and a system for
tracking and responding to feedback
Managing ResourcesAvailable/
LargeNegotiable Highly
Constrained
Money √
People √
Time √
Scope √
Managing Change• Recognize how initiatives being implemented impact
individuals and teams throughout the organization• Ensure that the drivers and goals of the initiatives are
well-understood and accepted; maintain momentum1. Identify Stakeholders2. Align Stakeholder “Arguments” to Build Momentum3. Create an Engagement Strategy4. Identify Trigger Events5. Plan to Be Wrong
Monitoring Progress
• Track and measure progress toward milestones for each initiative
• Monitoring– Continuous, ongoing– Used by project team to adjust the project
• Evaluating– Periodic– Used by senior management and customers to
adjust the initiative
Maintaining Stakeholder Involvement
• Remain in close contact with stakeholders• Ensure that the goals of the initiatives are in
alignment with stakeholders’ needs
Summary• HR strategy implementation is a process• There is both a technical side and a social side to
implementing change• Change management is a key responsibility of HR
practitioners who are implementing HR strategy• Identifying stakeholders early in the process and
maintaining their commitment is a key challenge• Continuously monitoring success will help in keeping
commitment• Never subject employees to the HR initiatives—help them
own the change• Resources must be balanced against each other to get the
best possible outcomes
Courageous Leadership Starts With You
– Sing or Dance Like No One Is Listening or Watching
– The Early Bird Gets the Worm, So Sleep Late – There is a Message In Every Mess– Love Like You’ve Never Been Hurt – Nothing Comes to A Sleeper But A Dream – Yesterday is History, Tomorrow is a Mystery and
Today is a Gift from GOD, that’s why it is called The Present