hrd summit 2011 people management why organisations... dist vers

P MPeople Management: Why organisations (and HR) keep making the same mistakes and(and HR) keep making the same mistakes and how to put them right… [Expanded edition for distribution]

People Science®

24th January 2011

Nicholas J HigginsCEO, VaLUENTiS & Dean, Int’l School of Human Capital ManagementDrHCMI MSc Fin (LBS) MBA (OBS) MCMIDrHCMI MSc Fin (LBS) MBA (OBS) MCMIHR Directors Summit 2011ICC Birmingham

P l S i ®People Science®

Analyse, Advise, Implement, EducateAnalyse, Advise, Implement, Educate

www.valuentis.com

Professional Services‘Winners of World Finance100 award’

(www.WorldFinance100.com )

www.ISHCM.com

ADDED INSERT

Smart. Smarter. Smartest...

Professional Serviceswww valuentis comwww.valuentis.com

‘PEOPLE SCIENCE®’

‘The leading human capital management

specialists’

Organisation Intelligencetto

improve organisation performance• Human Capital Management EvaluationHuman Capital Management Evaluation • Employee Engagement• Talent Management• Workforce Productivity & Performance• Predictive Analytics• HC Forensics & RiskHC Forensics & Risk• HR Function ROI Analysis• Organisation Measurement• Management Education• Organisation Strategy

SOLUTIONS

ADDED INSERT

‘ISHCM’Eight faculties:Enterprise Governance and LeadershipEvidence‐based Management (EbM) g ( )Human Capital ManagementHuman Capital MeasurementEmployee EngagementHR L d hiHR LeadershipHR Operational ExcellenceEmployment law...

...1 Masters HCMI practitioner qualificationp q4 executive programmes6 practitioner programmes80 short course modules

Unlimited customised combinationsUnlimited customised combinations...

One outstanding value proposition

ADDED INSERT

Fact 1Fact 1

“Organisations don’t exist without people.”Organisations don t exist without people.

Fact 2Fact 2

“Everything that happens within an organisation is down to the people it organisation is down to the people it employs past, present and future.”

Fact 3Fact 3

“ l i l l d“People are simultaneously ASSETS andRESOURCES from an organisationalgperformance perspective and potentialLIABILITIES from a risk perspective.”LIABILITIES from a risk perspective.

“Thi i t th h t f h it l“This is at the heart of human capitalmanagement.”

Fact 4Fact 4

“Organisations spend considerable sumseach year carrying out financial audits; buty y g ;spend very little in comparison on peoplemanagement effectiveness and/or HCMmanagement effectiveness and/or HCMaudits/evaluations.”

Overall factOverall fact

Thus, the oft-misguided question of‘How valuable are our people to thep porganisation?’ is the wrong question.

The question should be ‘How valuableare our people management practices?’and ‘How do we know?’and How do we know?

About todayAbout today…

“So today I’m going to talk about some l t bl common people management problems

encountered over the years and what to do about them”

[Note that this is a very short shortlist for the workshop]

ADDED INSERT

What organisations (HR) keep getting wrong (this is a short ‘shortlist’)…

1.Employee engagement: its concept and applicationp y g g p pp2.The use of employee surveys3 Evaluation/measurement of people management3.Evaluation/measurement of people management4.Performance management5 Th ‘ l t ’ f li t5.The ‘people competency’ of line management6.The role of HR (‘customer-agency dissonance’)

What organisations (HR) keep getting wrong (shortlist)…


1. Employee engagement: its concept and application

ff...common problems• Lack of working definition

... do differently• Select or buildg

• Inadequate definition• Not measured adequately

• Understand the concept• Adopt design or construct• Not measured adequately

• Management lack understanding of concept

• Adopt design or construct• Requires Communication,

Education and understanding of concept or its impactLittle use of models to

Education and Reinforcement (CER)Map operational ‘outcome • Little use of models to

support applicationN t b dd d

• Map operational ‘outcome systems’ (mensuration)C l i t if th • Not embedded as core

management practice• Can only exist if other

problems overcome

EMPLOYEE ENGAGEMENT:EMPLOYEE ENGAGEMENT:

“Employee engagement is an ‘outcome-based’ concept. It is the term used to describe the degree to which employees can be ascribed as ‘aligned’ and ‘committed’ to an organisation such that they are at their most productive.”

VaLUENTiS International School of HCM

Or another way to look at itOr another way to look at it…

Knows what toFully

congruent Knows what to do/achieve but

unlikely to achieve it

Could do more Fullyproductive

congruent

More likely to have

Less than optimallyIndividual’s have

performance/ capability

issues

Job gets doneoptimally

productive -Could do more

‘well’

Individual sdegree of Alignment

Likely to have performance,

attitudinal

More likely to have objective High

probability ofattitudinal and/or

behavioural issues

and/or ‘potential’

issues

probability of wasted effort/

frustrationIncongruent

Degree ofCommitment

AffectiveContinuance© VaLUENTiS Ltd 2002-11

Staff engagement:The challenge for organisations

Knows what to Fully

congruentdo/achieve

but unlikely to achieve it

Could do more

Fullyproductive “Only one box in

nine reflects the

More likely to have Job gets

Less than optimally Individual’s

nine reflects the constant ‘high bar’ challenge for

i ti iperformance/ capability

issues

Job gets done

p yproductive -

Could do more ‘well’

degree of Alignment

organisations in optimising engagement

Likely to have performance,

attitudinalMore likely to have objective

High probability of wasted

across the workforce on a daily basis”attitudinal

and/or behavioural

issues

have objective and/or ‘potential’

issues

of wasted effort/

frustrationIncongruent

y

Degree ofCommitment

AffectiveContinuance© VaLUENTiS Ltd 2002-11

When I talk about models and frameworks -here’s one as an example

VaLUENTiS 5D Employee Engagement Framework

here s one as an example…VaLUENTiS 5D Employee Engagement Framework

Line-of-Sight Work Environment

Organisationtioperating

culture

Reward (equity) Development( q y) p

© VaLUENTiS Ltd 2002-11

Engagement is and always has been a MULTI DIMENSIONAL construct

VaLUENTiS 5D Employee Engagement Framework

MULTI-DIMENSIONAL construct….[expanded]

Line-of-Sight Work Environment

VaLUENTiS 5D Employee Engagement Framework [ p ]

Objectives awareness

Behaviour alignment

Role ‘fit’

Cultural elements

Team dynamics

CommunicationOrganisationPerformance management

Feedback

Capability

Resources

Local management

Physical environment

Organisationoperating culture

Organisation designPerformance/talent

Remuneration equity

Bonus/incentives

Career progression

Competencies

Performance/talent management

‘Corporate’ LeadershipCommunicationDecision rightsBonus/incentives

Benefits

Role equity

Recognition

p

Succession planning

Job/ Role architecture

Training/ Learning

gWork values

Trust

Promotional aspects

Reward (equity) Development

Coaching/ Mentoring

© VaLUENTiS Ltd 2002-11

A look back at The original Sears gmodel…

“Arguably the simple model that set the engagement movement alight. Its now Arguably the simple model that set the engagement movement alight. Its now nearly 20 years old.

Also note the (now) flawed use of employee satisfaction ”( ) p y

Internal service

Employee Satisfaction

External Service

Customer Satisfaction

Customer Loyalty

Revenue Growth

Employee Retention

quality Value

ProfitabilityEmployee Productivity

Putting the Service-Profit chain to workHeskett, Jones, Loveman, Sasser Jr & Schlesinger, , , gHarvard Business Review Mar-Apr 1994

Employee engagement and Organisation Performance today:

We’ve now moved on from the Sears modelExample ‘Macro’ model NHS version 1.11

We ve now moved on from the Sears model…

Leadership &

governance

Leadership &

governance

Shareholder valueTrust

performanceEmployer brand

Employer brand

Human Capital

Practices

Human Capital

Practices External External Customer SatisfactionPatient

SatisfactionRevenue Growth

Quality ofservices

Portfolio mixSafety

X-sellingClinical treatment

Work valuesWork values

Line-of-sightLine-of-sight

St ff

governanceg

Value

Proposition

Value

Proposition

Satisfaction

Customer Loyalty

Patientexperience

Growth

ProfitabilityUse of Resources

Individual/ team

Productivity

Individual/ team

Productivity

t eat e tServicePatient focusDevelopmentDevelopment

RewardReward

Work environmentWork environment

Employee EngagementStaff

EngagementPortfolio mixPrompt service

X-sellingEnvironment

ServiceCommunity

Employee Retention

Staff Retention

‘Local’ M t

‘Local’ Management

ComplianceCompliance

ManagementManagementCost controlCost control

© VaLUENTiS VBM Analytics methodology 2008-11

2 The use of employee surveys2. The use of employee surveys

...common problems ... do differently• Viewed as a reactive

single event• Adopt more pro-active,

integrated application• Response rate over-focus • Inadequate and/or

• Focus on ‘end’ perspective• Understand your HCM Inadequate and/or

unbalanced questioning• Overly PR based

Understand your HCM ‘model’ and ‘QS’ design

• It’s about your staff• Overly PR based• Management

complacency

• It s about your staff• Too many B-players

requiring ‘baseball bat’(!)complacency• Failure in follow-up

actioning/comms

requiring baseball bat (!)• Adopt clear inclusive

process through ‘line’actioning/comms process through ‘line’[Added note: QS = Question-statement – technical term for questionnaire response item]

Remember (?) The Employee survey expertise model

HIGH

em

en

t

MYOPIC 20/20 foresight

man

ag

tise

foresight

cap

ital

mexp

ert

um

an

c

UNFOCUSEDBLIND

Hu

LOW HIGHLOW HIGHSurvey design & measurement

expertise © ISHCM 2006

HIGH

tise

MYOPIC 20/20 foresight

exp

ert

Result: misleading o

Result: organisation has

sufficient in-

em

en

t misleading or erroneous

interpretation

depth, robust knowledge to act

upon

man

ag

UNFOCUSEDBLIND

p

cap

ital

UNFOCUSED

Limited insight due to

BLIND

Result: end up

um

an

c due to limitations of

HCM knowledge

Result: end up with ‘garbage

in-garbage out’ syndromeH

u knowledge syndrome

LOW HIGHSurvey design & measurement expertise © ISHCM 2006

HIGH

20/20 20/20 20/20

tise

MYOPICMYOPICMYOPIC 20/20 20/20 20/20 foresightforesightforesight

exp

ert

16% 8%em

en

t m

an

ag

cap

ital

25%51%

um

an

c

25%51%

Hu

UNFOCUSEDUNFOCUSEDUNFOCUSEDBLINDBLINDBLINDLOW HIGHSurvey design & measurement expertise

Sample: 147 employee surveys. All organisations with over 750 employees. ISHCM research team. Study carried out 2006-7

Employee surveys and engagement: Ten Best practices from the field...(I)

View or apply employee surveys:View or apply employee surveys:

1. As part of a wider enterprise driven focus on people management1. As part of a wider enterprise driven focus on people management2. With the appropriate importance (not as a tick-box exercise)3. As organisational feedback/diagnostics as opposed to just garnering

opinion, using a robust engagement framework in the process4. As an embedded annual/quarterly process not as one-off interventions5 With the importance of science in understanding the data and the various 5. With the importance of science in understanding the data and the various

systemic relationships that provide greater understanding and drive more sustainable interventions

Source: Employee Engagement: Factors of Successful ImplementationJournal Of Applied Human Capital Management, Volume 2 Number 1 2008

Employee surveys and engagement: Ten Best practices from the field...(II)

View or apply the employee survey process:View or apply the employee survey process:

6. As a ‘means to an end’ and not the other way around7. With emphasis on post-survey practice/intervention8. NOT as a means of just benchmarking externally (but they see the

advantages of benchmarking internally)advantages of benchmarking internally)9. In NOT over-focusing on the response ratio recognising that it’s just one

element10.As mandatory, i.e. don’t postpone the process just because something

negative may have recently happened, i.e. it’s not about internal or external PRexternal PR

Source: Employee Engagement: Factors of Successful ImplementationJournal Of Applied Human Capital Management, Volume 2 Number 1 2008

One for the roadOne for the road.....

“If you cannot measure it, you cannotimprove it.”

Original source attributed to Lord Kelvin 1824-1907, pioneerg pof physics and thermodynamics, first UK scientist appointedto the House of Lords.

Since used by many to illustrate the same point in differentways, i.e. substitute ‘improve’ with ‘manage’.

3. Evaluation/measurement of people management

...common problems ... do differently• Managers have patchy

understanding of HCM• Introduce DCLR

programmeg• Lack of in-situ design

operational models

g• Apply HCM elements to

operational situationsp• Default to single

dimension benchmarking

p• Need to use blended

QUAL-QUANT frameworkdimension benchmarking• Over-focus on data

collation rather than its

QUAL QUANT framework• Measurement must be

outcome focused rather collation rather than its use

• Lack of internal expertise

outcome focused rather than input focused

• Get ‘external’ help• Lack of internal expertise • Get external help[Added note: DCLR = shorthand for Design, Communicate, Learn, Reinforce]


“B t h t d h t lk f “But what do we mean when we talk of ‘people management’?”

[whilst acknowledging the employee engagement elements shown earlier]

ADDED INSERT

HUMAN CAPITAL MANAGEMENT:HUMAN CAPITAL MANAGEMENT:

“Human capital management is the term which is used to describe an organisation’s multi-disciplined and integrated approach to optimising the capabilities and performance of its management and employees.”

VaLUENTiS International School of HCM

Evaluating People management in your organisation: Our HCM ‘radar/clock’ (you’ve seen

DIVERSITYTRAINING &

organisation: Our HCM radar/clock (you ve seen this before, right?)

DIVERSITY

EMPLOYEECENTRICITY

TALENTMANAGEMENT

TRAINING &DEVELOPMENT

813

EMPLOYERBRAND REWARD

674416

HRGOVERNANCERETENTION

615657

599 416

GOVERNANCE

HR

RETENTION742 431

487684HR

OPERATIONALEXCELLENCE

RESOURCING 642

628594603

‘O t f i ’

LEADERSHIPPERFORMANCEORIENTATION

796

‘Out-performing’ (world class)‘Out-performing’ (peer)‘Comparable’

ORGANISATIONCLIMATE ORGANISATION

COMMUNICATIONS

ORGANISATIONDESIGN

Comparable (peer)

‘Under-performing’ (peer)


“Thi ll t t d b k ith h ll “This all started way back with a challenge set by one of our earliest clients – could we

report a people management (aka HCM) construct on one page?”p g

ADDED INSERT

And then we did things like The HCRAnd then we did things like The HCR Standards (GHCRS2006)

HC Productivity Statement


CONTRACTED RESOURCE ye 31st Dec 2005 ye 31st Dec 2004

Total number of FTE days contracted in year 3,530,340 3,401,289

Total number of FTE vacation days taken in year

336,987 333,144

TOTAL NUMBER OF CONTRACTED FTE DAYS AVAILABLE

3,193,353 3,068,145

WORK RESOURCE ADJUSTMENT




336,987 333,144


3,193,353 3,068,145


Human Capital Operating Statement



FTE days gained through recorded overtime work (+)

61,932 65,371

FTE days lost to illness (-) 18,431 19,016

FTE days lost to work-related illness/injury (-) 2,773 2,816

FTE days lost to industrial action (-) 249 167

FTE days recorded as lost under miscellaneous (-)

763 1,075

ACTUAL NUMBER OF CONTRACTED FTE DAYS WORKED

3,233,069 3,110,442



61,932 65,371





763 1,075


3,233,069 3,110,442

6

ye 31st Dec 2005 ye 31st Dec 2004

OPERATING INCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047

Revenue per FTE 64,641 63,253


OPERATING INCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047

Revenue per FTE 64,641 63,253 PeopleFlow® Statement PeopleFlow® Statement PRODUCTIVITY

HCI*Revenue per FTE day (optimal) £192.96 £185.42

HCI*Revenue per FTE day (actual) £190.59 £182.90

HCI*Revenue per FTE day differential £2.37 £2.52

EMPLOYER-EMPLOYEE RELATED INDICES

Employee engagement index 69.2 68.5

Employer brand index 71.3 71.0

HUMAN CAPITAL MANAGEMENT INDEX

PRODUCTIVITY







HUMAN CAPITAL MANAGEMENT INDEX 2006 A Guide to the Human Capital

Reporting Standards

OPERATING COSTS

Total operating costs (£000s) 904,371 815,094

People costs (£000s) 532,181 464,317

Human Capital Intensity (HCI) 58.85 56.96

OPERATING INCOME ATTRIBUTABLE TO HC (HCIR per FTE)

38,041

36,029

OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

p

STAFFING ye 31st Dec 2005 ye 31st Dec 2004

%

No of full-time staff at start of year 14,011 13,865

Number of part-time staff at start of year (FTE eqv)

1,932 1,491

N b f th t t t f (FTE ) 104 175

p


%



1,932 1,491

N b f th t t t f (FTE ) 104 175 HUMAN CAPITAL MANAGEMENT INDEX

VB-HR Rating BB-BB-R BB-B-R

HC Performance Sustaining + Sustaining +




RS2 (GHCRS2006) £ % £ %

ANCILLARY PEOPLE COSTS (APC)

Training & Development costs (£000s) 8,176 7,342

Recruitment costs (£000s) 2,314 2,954

Health & Safety costs (£000s) 740 691

HR functional and related costs (£000s) 6,254 6,879

Outplacement costs (£000s) 256 53

£ % £ %







Number of other at start of year (FTE eqv) 104 175

Full time equivalents (FTEs) at start of year

16,047 15,531

STAFFING MOVEMENT % £ %

Number of FTEs recruited in period (+) 1,427 1,874

Number of acquisitioned FTEs during period (+) - -

1,427 1,874

Number of voluntary leavers (FTE) in period (-) 996 1,065

Number of FTEs made redundant or outplaced 35 217



16,047 15,531




1,427 1,874


Number of FTEs made redundant or outplaced 35 217

HCR 1st Edition

2006

Total 17,740 17,919

HC LEVERAGE (HCIR/APC per FTE) 35.06 32.26

Total 17,740 17,919


Number of FTEs made redundant or outplaced in period (-)

35 217

Number of FTE retirements in period (-) 91 76

Number of FTEs outsourced in period (-) -

Full time equivalents (FTEs) at end of year 16,352 16,047

STAFFING MISCELLANEOUS

Mean tenure (years) 5 2 5 3


35 217





Mean tenure (years) 5 2 5 3

GH Mean tenure (years) 5.2 5.3

Mean age of workforce 34 34

Retirement population 5,391 5,304

Mean tenure (years) 5.2 5.3



And eventually the full HCIntel suiteAnd eventually the full HCIntel suite...

HC Measurement

“We really have moved on from some HR benchmarking metrics.”

•Absenteeism•Turnover (voluntary)•Turnover (involuntary)•Recruitment cost per FTE•Time to fill•Training days per FTE•Training spend per FTE•Revenue per FTE

5.2%8.6%1.8%£12,56938 days3.5£871£365,121

•VB-HR™ Rating

•HC Performance

•VB-HR™ Rating

•HC Performance

VB-HR™ RatingHuman Capital Management

Overallranking

AAAAAABBBBBBCCCCC

R

rmin

r

RRB RB

VB-HR™ RatingHuman Capital Management

Overallranking

AAAAAABBBBBBCCCCC

R

rmin

r

RRB RB





336,987 333,144


3,193,353 3,068,145



61,932 65,371





763 1,075

ACTUAL NUMBER OF CONTRACTED FTE 3 233 069 3 110 442





336,987 333,144


3,193,353 3,068,145



61,932 65,371





763 1,075

ACTUAL NUMBER OF CONTRACTED FTE 3 233 069 3 110 442



OPERATING INCOME %

Revenue (£000s) 1,057,016 1,015,020



OPERATING INCOME %

Revenue (£000s) 1,057,016 1,015,020

Measurement pyramid

Human capital reporting

•Profit per FTE•HR FTE: FTE•Employee costs per FTE•HR costs per FTE•% females in senior management roles

£67,1191:112£27,469£135623%

•HCI (used with revenue per FTE to calculate HCIR per FTE)•HR budget (adjusted using standard template) MD d

•HR spend per FTE (adjusted using standard template)•Formal job offer successPlus portfolio of tertiary indicators which are more context/organisation specific

•HC leverage•HCIR per FTE

•HC Investment ratio•Employee engagement

•Voluntary turnover1

•Absenteeism1

•Accident/injury rate

•HCI (used with revenue per FTE to calculate HCIR per FTE)•HR budget (adjusted using standard template) MD d

•HR spend per FTE (adjusted using standard template)•Formal job offer successPlus portfolio of tertiary indicators which are more context/organisation specific

•HC leverage•HCIR per FTE

•HC Investment ratio•Employee engagement

•Voluntary turnover1

•Absenteeism1

•Accident/injury rate

Workforce Intelligence

HR Strategy

OrganisationalHCMCapital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB

Management Employees

BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital

HR Functional Capital

C RRR

HR Procurement

RBB

RBBBB

BB

EFFECTIVENESS

MAINTENANCE

Workforce Intelligence

HR Strategy

OrganisationalHCMCapital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB

Management Employees

BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital

HR Functional Capital

C RRR

HR Procurement

RBB

RBBBB

BB

EFFECTIVENESS

MAINTENANCE

BB

BB

EFFECTIVENESS

MAINTENANCE


3,233,069 3,110,442

PRODUCTIVITY











3,233,069 3,110,442

PRODUCTIVITY










FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17 740 17 919

FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17 740 17 919

PeopleFlow® Statement


%



1,932 1,491



16,047 15,531




1,427 1,874



35 217

PeopleFlow® Statement


%



1,932 1,491



16,047 15,531




1,427 1,874



35 217

Employee engagement

Basic metrics

•MD spend•Internal/external management position fill ratio•No of industrial tribunals•% union membership•HR service delivery (IT mix)Plus portfolio of tertiary indicators which are more context/organisation specific

•MD spend•Internal/external management position fill ratio•No of industrial tribunals•% union membership•HR service delivery (IT mix)Plus portfolio of tertiary indicators which are more context/organisation specific

Business objectives awareness

Role ‘fit’

Performance management

Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management


Work Environment

The VB-HR™ Employee Engagement Framework

OrganisationalArchitectureOrganisation design


16.1

14.6

14.2

14.313.7

Business objectives awareness

Role ‘fit’


Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management


Work Environment

The VB-HR™ Employee Engagement Framework

OrganisationalArchitectureOrganisation design


16.1

14.6

14.2

14.313.7

RRISK

RRISK

RRISK

HR GOVERNANCE

ORGANISATION DESIGN

RESOURCING TRAINING & DEVELOPMENT

PERFORMANCE (TALENT)

MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLLHR

GOVERNANCEORGANISATION

DESIGNRESOURCING TRAINING &

DEVELOPMENT

PERFORMANCE (TALENT)

MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLL

Total 17,740 17,919


Total 17,740 17,919
















People Science

engagement

Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects


Career progression

Competencies

Succession planning


Training/ Learning

Coaching/ Mentoring

systemRewards systemDecision rightsWork values12.8

6

14.5

13.1

13.0

12.9

Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects


Career progression

Competencies

Succession planning


Training/ Learning

Coaching/ Mentoring

systemRewards systemDecision rightsWork values12.8

6

14.5

13.1

13.0

12.9

DIVERSITY

EMPLOYEECENTRICITY

TALENTMANAGEMENT


81.3+

DIVERSITY

EMPLOYEECENTRICITY

TALENTMANAGEMENT


81.3+

1.6HR Policy

2.5Organisation Restructure/

Change/ Development

3.1Workforce Planning

1 7

1.1Employer

brand

4.1Needs

Assessment

6.1Total Reward Programme

7.1Employee

Communications

8.2Risk

Assessment

1.2HR Value

Proposition

1.3HR Delivery

Structure

1.4HC Reporting

1.5HR Capability

2.6Acquisition/ Divestiture/

Start-up Due Diligence/ Support

2.1Organisationa

l Design/ Capability Planning –

Business Unit Level

2.2Organisationa


Multi-country Level

2.3Organisationa


Global Level

2.4Job

Classification/ Evaluation

3.2Candidate

Identification Services

3.3Job Profile Services/

Requisition Processing

3.4Candidate Selection

3.5Temporary

and Contractor

Staffing

3.6General

Employment Services

4.2General Training Design,

Development and Delivery

4.3Training &

Development Management

4.4Technical/ Functional/

Policy & Procedure Training

4.5Employee Induction/

Orientation

4.6Competencies/ Skills Model Development

And Assessment

5.1Performance

(Talent) Management Assessment

5.2Performance

(Talent) Management Development

5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And

Salary Management

6.3Bonus/Incenti

ve/ Stock Options

Compensation

6.4Senior/

Executive Compensatio

n

7.2Benefits

7.3Attendance/

Leave Of Absence/ Exit

Interviews

7.4Return-To-

Work and Job Accommodati

on

8.1Risk

Management/ Regulatory

Compliance/ Security

9.1HRIS Strategy

9.2HRIS

Planning

10.1Payroll

10.2Employee/ Manager

Interaction/ Problem

Resolution

10.3Time

Reporting

10.6Tax

Reporting/ Audit

2.7

5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company

Policies And Procedures

8.3Accident

Prevention and Training Programmes

8.4Health/Medical Programmes

9.3HRIS Support

9.4Employee

Research & Modelling

5.6Employee Coaching

6.6Compensatio

n Analysis/Pay

review

6.7Healthcare/

7.6Collective

Bargaining/ Negotiating/ Consultative Processes

7.7

8.5Incident

Tracking and Reporting

8.6Managing External

Consultants/ Outsource Providers

9.5Benchmarkin

g

9.6Measurement and Reporting

10.4Special Pay, Adjustments

And Deductions

10.5Payroll

Accounting/ Recon/ Manual

Calculations &

Disbursement

5.7 9.7

GOVERNANCE DESIGN DEVELOPMENT MANAGEMENT & COMMS SAFETY MENT

1.6HR Policy

2.5Organisation Restructure/

Change/ Development

3.1Workforce Planning

1 7

1.1Employer

brand

4.1Needs

Assessment

6.1Total Reward Programme

7.1Employee

Communications

8.2Risk

Assessment

1.2HR Value

Proposition

1.3HR Delivery

Structure

1.4HC Reporting

1.5HR Capability

2.6Acquisition/ Divestiture/

Start-up Due Diligence/ Support

2.1Organisationa


Business Unit Level

2.2Organisationa


Multi-country Level

2.3Organisationa


Global Level

2.4Job

Classification/ Evaluation

3.2Candidate

Identification Services

3.3Job Profile Services/

Requisition Processing

3.4Candidate Selection

3.5Temporary

and Contractor

Staffing

3.6General

Employment Services

4.2General Training Design,

Development and Delivery

4.3Training &

Development Management

4.4Technical/ Functional/

Policy & Procedure Training

4.5Employee Induction/

Orientation

4.6Competencies/ Skills Model Development

And Assessment

5.1Performance

(Talent) Management Assessment

5.2Performance

(Talent) Management Development

5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And

Salary Management

6.3Bonus/Incenti

ve/ Stock Options

Compensation

6.4Senior/

Executive Compensatio

n

7.2Benefits

7.3Attendance/

Leave Of Absence/ Exit

Interviews

7.4Return-To-

Work and Job Accommodati

on

8.1Risk

Management/ Regulatory

Compliance/ Security

9.1HRIS Strategy

9.2HRIS

Planning

10.1Payroll

10.2Employee/ Manager

Interaction/ Problem

Resolution

10.3Time

Reporting

10.6Tax

Reporting/ Audit

2.7

5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company

Policies And Procedures

8.3Accident

Prevention and Training Programmes

8.4Health/Medical Programmes

9.3HRIS Support

9.4Employee

Research & Modelling

5.6Employee Coaching

6.6Compensatio

n Analysis/Pay

review

6.7Healthcare/

7.6Collective

Bargaining/ Negotiating/ Consultative Processes

7.7

8.5Incident

Tracking and Reporting



9.5Benchmarkin

g

9.6Measurement and Reporting

10.4Special Pay, Adjustments

And Deductions

10.5Payroll

Accounting/ Recon/ Manual

Calculations &

Disbursement

5.7 9.7

GOVERNANCE DESIGN DEVELOPMENT MANAGEMENT & COMMS SAFETY MENT Science HCIntel®

Modelling anal tics linking

HR delivery and

operational risk

EMPLOYERBRAND

HRGOVERNANCE

HR OPERATIONALRESOURCING

RETENTION

REWARD

74.2

67.4+

61.5

43.1 +

48.7

64.259 460 3

68.4

65.759.9 41.6

EMPLOYERBRAND

HRGOVERNANCE

HR OPERATIONALRESOURCING

RETENTION

REWARD

74.2

67.4+

61.5

43.1 +

48.7

64.259 460 3

68.4

65.759.9 41.6

Human C it l

Human Capital Work valuesWork values

Leadership &

governance

Leadership &

governance

Shareholder value

Shareholder valueEmployer

brandEmployer

brand

Human C it l

Human Capital Work valuesWork values

Leadership &

governance

Leadership &

governance

Shareholder value

Shareholder valueEmployer

brandEmployer

brand

3.11Managing

ASP/software/ Outsource Providers

4.11Managing

ASP/ERP/software/Outsource Providers

1.7HR

Performance/ Strategy

Review/ Audit

10.9Reporting/ Interfaces

3.7Relocation

3.8Outplacement

Services

3.9Employment Law Services

3.10Consulting

Line Managers On

Staffing Issues

4.7Leadership/ Management Development

4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

10.7Employee

Reimbursement

10.8Statutory Benefits/

Miscellaneous Admin

10.10Managing Outsource Providers



Managing External


Healthcare/ Welfare/

Statutory/ Other Benefit Programmes

Work Practices For Represented Employees

Employee Counselling/

Case management

5.8PM

Compliance Support

6.8Pension

Management

6.9Retirement Planning/

Counselling And

Administration

7.8Conflict and

Issue Resolution

7.9Corporate/ Community

Social Responsibility

Employee Records/Case management/

Data Maintenance


9.9Managing


5.10Managing ASP/ERP/ Software Providers

5.9Consulting To

Line Managers On Performance

Issues



7.10Government/ Legislative

Issues


Consultants

3.11Managing


4.11Managing

ASP/ERP/software/Outsource Providers

1.7HR

Performance/ Strategy

Review/ Audit


3.7Relocation

3.8Outplacement

Services

3.9Employment Law Services

3.10Consulting

Line Managers On

Staffing Issues

4.7Leadership/ Management Development

4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

10.7Employee

Reimbursement

10.8Statutory Benefits/

Miscellaneous Admin

10.10Managing Outsource Providers



Managing External


Healthcare/ Welfare/

Statutory/ Other Benefit Programmes

Work Practices For Represented Employees

Employee Counselling/

Case management

5.8PM

Compliance Support

6.8Pension

Management

6.9Retirement Planning/

Counselling And

Administration

7.8Conflict and

Issue Resolution

7.9Corporate/ Community

Social Responsibility

Employee Records/Case management/

Data Maintenance


9.9Managing


5.10Managing ASP/ERP/ Software Providers

5.9Consulting To

Line Managers On Performance

Issues



7.10Government/ Legislative

Issues


Consultants

Management

Modelling analytics linking performance to human capital

(management)

37

EXCELLENCE

LEADERSHIP


COMMUNICATIONS

ORGANISATIONDESIGN

PERFORMANCEORIENTATION

79.6+

62.859.460.3+

EXCELLENCE

LEADERSHIP


COMMUNICATIONS

ORGANISATIONDESIGN

PERFORMANCEORIENTATION

79.6+

62.859.460.3+

Capital PracticesCapital

Practices

External Value

Proposition

External Value

Proposition

Customer SatisfactionCustomer

Satisfaction

Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth

ProfitabilityProfitability

Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity



Cost controlCost control


Portfolio mixPortfolio mix

X-sellingX-selling

ServiceService


DevelopmentDevelopment

RewardReward


Employee EngagementEmployee

Engagement

Capital PracticesCapital

Practices

External Value

Proposition

External Value

Proposition

Customer SatisfactionCustomer

Satisfaction

Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth

ProfitabilityProfitability

Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity



Cost controlCost control


Portfolio mixPortfolio mix

X-sellingX-selling

ServiceService


DevelopmentDevelopment

RewardReward


Employee EngagementEmployee

Engagement Pathfinder (OE indicators)

‘RADAR’

4 Performance management4. Performance management

...common problems ... do differently• Trying to use ‘one size

fits all’ system• Standard platform with

tiered customisation• Competing objectives

causing confusion• Ensure PM objectives

clarified and understood • Variable quality of face-

time, feedback and rating• Need to ensure constant

MC maintenance, g• Still viewed as onerous

task• Evaluate the PMS and

identify ‘neg’ driverstas• Too often defaults into

negative perception

de t y eg d e s• Requires constant

monitoringnegative perception monitoring[Added note: MC = Management Competency;PMS = Performance Management System (N.B. this is not just software)]

3 Performance management3. Performance management

“F t d ill t ti I’d j t lik t “For today as an illustration, I’d just like to show you output from a real example of a

multi-divisional organisation who had problems getting an effective PMS to work”p g g

ADDED INSERT

VALUE-ADD4• Focus on coaching

styleNote the spreadPerformance Leadership

style • Normally linked to

well-defined scorecard for clear LOS

Note the spread along the ‘curve’

3

Very little awareness of performanceAny reviews done in unstructured ad hoc

LOS

• Formal process (inc 360 degree) supported with3

PerformanceManagement

mannerInformal, no formal documentationValue destroying

supported with continual documentation

• Value adding in geometric wayJ

PM ‘Maturity Curve’

EVOLUTION1

2

Performance Appraisal

practice

• Evaluative with focus on

geometric wayJI

HG

FEAppraisalPerformance

Awareness

• Seen as administrative-

focus on performance against role objectives

• Joint-owned process with two-A

CD

BSeen as administrativebased task

• Mainly one-way, usually associated with poor performance monitoring

pway communication

• Done semi-annually with formal documentation

A

p g• Normally done on

annual basis• Management have

limited understanding

• If conducted by management well should be value-adding

VALUE-NEGATIVEand tends still to be value negative A = business unit

© VaLUENTiS Ltd

VALUE-ADD • Minimum of twice-annual review (event-driven)• 360° feedback• Forced ranking

3

• Forced ranking• Objectives based on role• Ranking linked to reward, management of under-

performance and development needs• Continuous on-line collation of formal

2

Type 3Embedded PM

Continuous on line collation of formal documentation

‘Multi BU1

2

Type 2Integrated PM

Multi BU tiered l ti ’

EVOLUTIONType 1

Core Platform• Twice-annual review• 180° feedback

solution’

• Annual review• 90° feedback• Forced ranking

Obj i b d

• 180° feedback• Forced ranking• Objectives based on

competencies• Ranking linked to• Objectives based on

role• Ranking linked to

reward and management of under performance

• Ranking linked to reward, management of under-performance and development needs

• On-line collation ofof under-performance• Manual collation of

formal documentation

On line collation of formal documentation

VALUE-NEGATIVE

© VaLUENTiS Ltd

VALUE-ADD• Minimum of twice-annual review (event-driven)

360° f db k

3

• 360° feedback• Forced ranking• Objectives based on role• Ranking linked to reward, management of under-

performance and development needs 3

Type 3Embedded PM

performance and development needs• Continuous on-line collation of formal

documentation

BU mapping to

1

2

Type 2Integrated PMJ

BU mapping to tiered solution –

[note ‘the journey’]EVOLUTION

Integrated PM

Type 1Core Platform

T i l i

IHG

FE

[note the journey ]

• Annual review• 90° feedback

• Twice-annual review• 180° feedback• Forced ranking• Objectives based on

competenciesA

CD

B

• Forced ranking• Objectives based on

role• Ranking linked to

competencies• Ranking linked to

reward, management of under-performance and development needs

A

reward and management of under-performance

• Manual collation of formal documentation

development needs• On-line collation of

formal documentation

VALUE-NEGATIVE

© VaLUENTiS Ltd

5. The ‘people competency’ of line management......

...common problems ...do differently• Lack of understanding as

to what people • Clear HCM framework

with blended learning management actually involves

programmes and measurement

• Varied mix of line managers

• Standard MC platform with assessments

• No set bar to becoming line ‘people manager’

• Adopt ‘license to manage’ hurdles

• Too many ‘B’-players• HR role compensation

• Requires exit routepaths• Role definition reviewHR role compensation Role definition review

[Added note: MC = Management Competency]

3. The ‘people competency’ of line management......

“A th ll ill t ti f t d h ’ “Another small illustration for today, here’s an output from a management development

project looking at manager’s desire for learning type and duration – a very learning type and duration a very

important component for getting ‘buy-in’ to MD programmes MD programmes.

Note the difference with the standard output of so many MD programmes seen”

ADDED INSERT

MC programme: Learning channel preference

Duration and technique preferences – Central Support100%

75%CICI

PS

CS

AL Action LearningAL Action LearningAL Action Learning

efer

enceSPS

ALOTJ

CS

C

SPSAL

OTJ

CS

C

AL

CS

PS

P

CS

PS

P

C SSCI Critical Incident

AL Action Learning

CS Case Study

C Coaching

CI Critical IncidentCI Critical Incident

AL Action LearningAL Action Learning

CS Case StudyCS Case Study

C CoachingC Coaching

50%

hniq

ue p

re

M

CS

SGDG

M

CS

SGDG

CI

SAL

OTJM

SG

DG

P CI

ALOTJ

M

CS

DG

P

CI

ALOTJ

M

CS

DG

P

PS AL

CS

PS AL

CS

M Mentoring

CS Case Study

DG Discussion Group

P Panel

M MentoringM Mentoring

CS Case StudyCS Case Study

DG Discussion GroupDG Discussion Group

P PanelP Panel

25%

TechRPM

P

RPM

P

RP M

SG

DGM

SG

DG

RPRP

PS Problem Solving

RP Role Playing

OTJ On the job learning

P Panel

PS Problem SolvingPS Problem Solving

RP Role PlayingRP Role Playing

OTJ On the job learningOTJ On the job learning

P PanelP Panel

RPRP

PPS Simulation

SG Structured Games

S SimulationS Simulation

SG Structured GamesSG Structured Games

2 hours or less ½ day 1 day 2 daysDuration

HR FUNCTIONS HR FUNCTIONS:

THE THE CUSTOMER-AGENCY CUSTOMER AGENCY

PROBLEMPROBLEM

3. The role of HR (‘customer-agency dissonance’)

“As I have said repeatedly on many i h f i ff f hoccasions, the HR function suffers from the

customer-agency problem; having g y p g‘customers’ (to serve) on the one hand and ‘agents’ (to influence/enforce upon) on the agents (to influence/enforce upon) on the

other.

This is a subject that has rarely been broached and yet affects daily life if you’re broached and yet affects daily life if you re in HR and has wider consequences for the

i ti ”organisation”ADDED INSERT

Ten common areas of HR function HCMimprovement.....

HCMPersonnel

20152016

202016

7...

20112012

20132014

2015

201120122013

20142015

20112011

‘Splitting the core’:

The reality choiceThe reality choice for HR functions


“In a soon to be released article ‘Splitting “In a soon to be released article ‘Splitting The Core: The break-up of HR’ I advocate

h h i i i b bili f hithat there is an increasing probability of this occurring with some empirical evidence

already appearing”

ADDED INSERT

6. The role of HR: ‘Splitting the core’ -implications

Split core PERSONNEL HC MANAGEMENT

RoleTraditional admin support function

Strategic and operational interaction

Organisation behaviour and Expert focus Due process Organisation behaviour and

performance

Customer- Organisation as customers Organisation as agentsagency Organisation as customers Organisation as agents

StaffingVarious ‘narrow’ technician backgrounds

Wide career management throughputbackgrounds throughput

MeasurementMainly single-dimension efficiency benchmarking

Comprehensive and sophisticated 3D applicationsy g p pp

Reporting to Finance/Operations Director HC Director/CEO

Outsourcing probability High Low


“And when it comes to understanding and And when it comes to understanding and positioning with regards to Value Based

HRHR…

[the next three slides back by popular demand]”

ADDED INSERT

Value-based HR: HR as a portfolio of service & compliance activitiesservice & compliance activities

HighValue Add Corporate Governance

ServicesCorporate Governance

ServicesSimplified Illustration

Professional& Advisory

Services

Professional& Advisory

ServicesIllustration

Nature of

& AdvisoryServices& AdvisoryServices

Nature ofActivity

Employment ServicesEmployment Services

Transaction ServicesTransaction Services

MarginalValue Added

Complexity of InteractionComplexity of InteractionLow

Value Added

High

The real ‘HR Value Curve’The real HR Value Curve

Value contributioncontribution

(per unit)

HR ‘Activity’ (The ’93’ as defined by VB-HR™ Profiler)

HR and Line ‘value dissonance’HR and Line value dissonance

Value contribution

‘Value contribution

(per unit)

dissonance’Means that HR can closeMeans that HR can close the expectation gap...

HR ‘Activity’ (The ’93’ as defined by VB-HR™ Profiler)

Remembering (arguably the most incisive quote ever)...

Management is doing things right; Leadership is doing the i ht thiright things.

Peter F Drucker (November 19th 1909 - November 11th 2005)

And finallyAnd finally,

“Have you met DES”

DESDES…

“DES is not an individual but a collective b di f i i l lembodiment of organisational elements

of…”

ADDED INSERT

‘DYSFUNCTIONAL DYSFUNCTIONAL

EQUILIBRIUM EQUILIBRIUM

SSYNDROME’

DESDES…

“DES is where everyday organisational DES is where everyday organisational interactions/engagements have become ‘dysfunctional’ but have also reached an dysfunctional but have also reached an

‘equilibrium’ between the various players, d th thi ( f i ifi ) and thus nothing (of any significance)

changes.

However armed with your 3D DES specs However, armed with your 3D DES-specs you can see them all around. Here’s a

f ”few…”ADDED INSERT

DES: some common examples involving people…

• HR compensating for line management ‘people p g g p pmanagement’ inadequacies

• Board meetings which swap information instead of Board meetings which swap information instead of decision-making

• Performance management systems that don’t • Performance management systems that don t manage performance (or indeed poor performers)

• Reward mechanisms that reward the wrong • Reward mechanisms that reward the wrong behavioursOrganisation with a ‘talent management strategy’ • Organisation with a ‘talent management strategy’ but staff don’t know how to get promoted (which is a common finding)a common finding)

• ‘Groupthink’

Thank youThank you…

“But more on DES next time…ut o e o S e t t e

‘S i h l ’‘Same time, same channel.’

THANKYOU”

hrd summit 2011 people management why organisations... dist vers

Business

people management practices

organisations dont people

distribution people

organisations hr

people s ip

organisationsand hr

performance management5

use of employee surveys3