aligning hr to business strategy
TRANSCRIPT
Aligning Human Resources
University of Budapest MBAVisiting Professor Program
Gary Wheeler, SPHR, GPHR, CCP, CBP
Objective• How to implement an HR
strategy that is aligned to the overall business strategy
• HR Competencies• HR best practices• Case study of HR as a
strategic partner
Gary Wheeler, The Virtual HR Director, LLC
Business Background
• Restaurant Manager & Area Manager Shoney’s Big Boy Enterprises Pizza Hut, Inc.
• United Parcel Service Industrial Engineering, Operations
and Human ResourcesDistrict Human Resources
Manager: Central Tex - San Antonio, Texas North Ohio - Cleveland, Ohio West Long Island - Brooklyn, Queens,
Bronx, Westchester, NY
Gary Wheeler, The Virtual HR Director, LLC
Education
• University of Maryland University College– B.S. Human Resources– Master’s Business Administration (MBA)
Gary Wheeler, The Virtual HR Director, LLC
Agenda• Evolution of HR• Why HR?• HR Competency Model• Developing an HR Strategy• Sysco Foods Case Study
(video)• Best Practices• Marcus Buckingham (video)
Gary Wheeler, The Virtual HR Director, LLC
Opportunity• Ask questions• Clarify any myths• Gain a better understanding
of U.S. corporations• Share some of your thoughts
and ideas
Gary Wheeler, The Virtual HR Director, LLC
Tell Me About You• First Name• Your Company
– Local– Regional– Global
• Does your company do business in the U.S.
• Have you ever traveled to the U.S.
Gary Wheeler, The Virtual HR Director, LLC
A Few of Questions• Do you have an HR
department?• What does HR do?• Are you in HR?• Do you want to be in HR?• Certificate?
Gary Wheeler, The Virtual HR Director, LLC
Curious• How many of you would like
to get rid of HR?
Gary Wheeler, The Virtual HR Director, LLC
Interview Questions Quiz• What country were you born
in?• Are you married?• How many kids do you have?• Do you have a car?• How old are you?• What year did you graduate
from high school?• Do you have a handicap?
Gary Wheeler, The Virtual HR Director, LLC
Should HR Executives Understand your company’s?• Project management• The balance sheet• The income statement• Financial ratios• Revenue and profit projections• Risk assessment• The company’s value proposition• Supply chain management
Gary Wheeler, The Virtual HR Director, LLC
Historically HR is about People
Gary Wheeler, The Virtual HR Director, LLC
Evolution of HR• Pre 1970’s
– Industrial Relations• Workers• Health and Safety
– Accounting• Compensation• Benefits• Administration• Personnel Activities
Gary Wheeler, The Virtual HR Director, LLC
Evolution of HR cont.• Human Resources
– Strategic Business Partner– Employment & Workforce
Planning– Employee Relations– Compensation and Benefits– Learning and Development– Health and Safety– Administration– Employee Services
Gary Wheeler, The Virtual HR Director, LLC
Why HR?• Environmental factors• Business trends• Stakeholder expectations
Gary Wheeler, The Virtual HR Director, LLC
Changes in Business• Regulatory change has
resulted in deregulation and tariff reductions
• Technological advances• The Internet • Lower transportation costs
Gary Wheeler, The Virtual HR Director, LLC
Business Trends• Globalization• Competition
• Note: • The next ten slides from author Dave
Ulrich
Gary Wheeler, The Virtual HR Director, LLC
Shareholder Expectations• Employee retention• Reputation management• Customer loyalty• Shareholder returns
Organizational Capabilities• Productivity costs• Speed• Service• Mergers, acquisitions,
alliances• Innovation• Collaboration /synergy• Branding• Quality
HR Competency Model
Strategic Contribut
ion
Business Knowledg
e
HR Delivery
HR Technolo
gy
PersonalCredibilit
y
Strategic Contribution• Culture management
• Fast change
• Strategic decision making
• Market-driven connectivity
Personal Credibility• Effective relationships
• Achieving results
• Personal communication
HR Delivery• Staffing• Development• Organization structure• HR measurement• Legal compliance• Performance management
Business Knowledge• Value chain knowledge
• Value proposition knowledge
• Labor knowledge
HR Technology• HR technology
Gary Wheeler, The Virtual HR Director, LLC
HR Strategy An image of the desired
future / inspirational & aspirational
A clear and compelling goal
Needs/wants to achieve
The plan by which the goals and mission will be
achieved
Vision
Mission
Goals
Strategies
InitiativesTactical / operational plans to implement the strategy
© Copyright Human Resource Business Partner Consultant 2005
Strategic Planning Process
InitiateProject
AssessExternal
Environment
EvaluateInternal
Environment
ConductStakeholder
Surveys
AnalyzeStrategic
Options
Finalize Strategy
DevelopImplementation
Plan
Analyze and prioritize strategic
options and developa vision
Complete dataCollection and analysis
Developing an HR Strategy• Cross-functional team• Company vision statement
– HR vision statement• Company mission
– HR mission statement• Company strategic
imperatives– HR strategic imperatives
Gary Wheeler, The Virtual HR Director, LLC
HR Metrics• Organization metrics
– HR metrics aligned to improve organization goals
– HR metrics are a part of line management metrics
– Measure outcomes not just activities
– Measures should equate to dollars
Gary Wheeler, The Virtual HR Director, LLC
Metric Examples• Retention or turnover• Employee benefit costs• Employee satisfaction survey• Injury rates or frequencies• Customer complaints• % Performance targets met• Return on training
investment• Training costsGary Wheeler, The Virtual HR Director, LLC
Balanced Score Card• Financial
– Retention or turnover– Employee benefit costs
• People– Employee Satisfaction – Injury rates of frequency
• Customer– Costumer complaints– % Targets Met
• Internal Business Processes– Return on training investment– Training costs
Gary Wheeler, The Virtual HR Director, LLC
Initiatives, Programs, Projects• Strategic Imperative–Initiatives
•Programs–Projects
Gary Wheeler, The Virtual HR Director, LLC
Example• Employee Performance and
Satisfaction– Employee safety
• New safety training• Safety awareness campaign• Health and Safety Committees• Safety Awareness Day
– Employee communication• Online newsletter• Employee portal• Annual one-on-one communication
Gary Wheeler, The Virtual HR Director, LLC
Best Practices
Key Themes• HR executives must first be business
people, speaking the language of business and presenting a compelling business case.
• The key responsibility of HR is to create the workforce that delivers on the business strategy.
• HR executives must demonstrate courage, values, and leadership
Gary Wheeler, The Virtual HR Director, LLC
Good to Great
• Great companies think first about “who”, and then about “what”
• Once a company has created momentum, it needs to keep a balance between preserving its core values and changing its operation practices
Jim Collins – Good to Great: Strategies for Your Business
Gary Wheeler, The Virtual HR Director, LLC
Corporate Governance• The key to an ethical company is a
culture of values, integrity, and respect for the law. HR is at the core of creating this culture.
Richard C. Breeden – Corporate Governance, Ethics and Corporate Culture
Gary Wheeler, The Virtual HR Director, LLC
Structures and Systems• The HR strategy is driven by the
business strategy.• Sysco’s human capital model supports
the company’s overall business strategy:
1. Customer Centric2. Cost effective3. Capability4. Commitment5. Compliance6. Clear expectations7. Common understanding
Ken Carrig – Creating Competitive Advantage Through People – Strategy, Structure and Systems
Gary Wheeler, The Virtual HR Director, LLC
Structures and Systems cont.• Transformational HR departments focus
on driving the business by building the organization.
• Companies need to pay well, but find other ways to motivate employees after they are hired.
Ken Carrig – Creating Competitive Advantage Through People – Strategy, Structure and Systems
Gary Wheeler, The Virtual HR Director, LLC
Coaching for Leadership• Participating in a feedback process is
critical to realigning a person’s view with reality and helping develop as a leader.
Marshall Goldsmith – Coaching for Leadership
Gary Wheeler, The Virtual HR Director, LLC
Contribution to Bottom Line• The ultimate competitive advantage is
an empowered workforce aligned with and focused on executing the company’s strategy.
• Achieving an organization’s strategic goals may involve redesigning work responsibilities and evaluation systems.
Carleen Haas – Strategic HR’s Contribution to the Bottom Line
Gary Wheeler, The Virtual HR Director, LLC
Questions?
Thank You
Gary Wheeler, The Virtual HR Director, LLC
[email protected]://www.thevirtualhrdirector.com