human resources strategic framework: creating value and results through people
TRANSCRIPT
CREATING VALUE AND RESULTS THROUGH PEOPLE
Human Resources Strategic Framework
Jim LyndeMarch, 2015
(recommend viewing as Slide Show presentation)
KEY PRINCIPLES
1. People are the only true performance variable. Investing in the right
people is the greatest potential ROI
2. Achievement = Business Vision + Aligned Design and Execution
3. Stakeholders are core (Customers, Workforce and Investors).
Improve results (with balance) for all stakeholders to create greatest
long term financial return
Market Value is created through people who:
1) CAN execute the Vision, Strategy and Tactics
2) Deeply WANT to achieve Vision/Strategy
3) DO perform and achieve Measured Results
BUILDING VALUE THROUGH PEOPLE
CANCapability
WANTCommitment
DOExecution/Performance
Recruit and
continually grow
talented people who
can execute
strategies to achieve
business vision
Inspire cult-like
commitment to
extraordinary execution
of vision, strategies and
tactics
Drive performance and
accountability to
achieve expected
measured results
BUSINESS BUILT TO GROW AND WINStakeholder: Leadership Workforce Customers Investors
= Profit
X
X
- Value Execution Model
Leadership Work
Force Can Want
Do
Customer
Loyalty
Cost
Management Can Want
Do
Aligned Foundation
Ingredients
Vision Purpose/Competitive
Advantage Values Strategy to Achieve
Employee Brand Identity/Promise Team Member
Processes
Customer Brand Identity/Promise Operating and
Marketing Processes
Business Model Financial Processes
Key Diagnostic/ Predictive
Measures
Key Result Measures
360 Feedback (create Can, Want & Do)
Employee Surveys (commitment, pride)
Customer Satisfaction/Net Promoter (intent to, refer,return, value, overall satisfaction)
Customer/Market Insights
Trend Analysis Forecast
Turnover All Other Financial,
Customer and Workforce Measures
Productivity Turnover/Retention Talent Depth to Grow
Sales Repeat Business Market Share Market Growth
Margins Variance to
Standards/Competition ROI
HR Focus
ALIGNED PEOPLE FRAMEWORK
COMPANY VISIONCompany Values/Desired Behaviors
Includes Purpose/Competitive Advantage
COMPANY STRATEGIES
RECRUIT
SELECT
ONBOARD
TRAIN
WORK ENVIRONMENT
PERFORMANCE
DEVELOP
REWARD
ALIGNED PEOPLE FRAMEWORK(EXAMPLE ONLY—NOT SPECIFIC RECOMMENDATION)
COMPANY VISION Company Values/Desired Behaviors
Includes Purpose/Competitive Advantage
COMPANY STRATEGIES
Recruit
Create
compelling
brand with
strong
values that
attract the
right people
Candidate
quality and
feedback
Select
Effective,
efficient
and
rigorously
executed
process to
choose the
right people
Turnover of
new hires,
360
reviews
Onboard
Pervasive
and strong
sense of
vision and
brand to
create cult-
like pride
Turnover of
new hires,
productivity,
internal
references
Train
“A” level
skills
across
functions,
units, and
levels with
managerial
focus on
teaching
Speed to
productivity,
certification
metrics
Work
Environment
• Ongoing
transparent
exchange of
ideas and
performance
• Network of
caring, goal-
setting and
coaching
Employee
Surveys, 360
feedback,
Turnover
Performance
• Defined and
achievable
measurement
• Direct
feedback
• Ranking and
identification
• Action to
improve
Productivity,
Performance
Differentiation,
Planned
Turnover
Develop
• Talent to
achieve
vision and
grow
• Continuous
upgrade
• Quality and
# ready
when
needed
Bench depth,
Readiness
Reward
• Incentives and
Recognition
based on
strategic focus
• 75th percentile
pay for 75th
percentile
EBITDA
• Competitive
benefits
Retention of
successful
performers and
key talent
Alig
nm
ent
Ele
ments
Metric
s
STRATEGIC ALIGNMENT EXAMPLE A:OPERATIONAL EXCELLENCEHighly Reliable Execution at Low Cost Recruit/
Select
Onboard Train Work
Environment
Performance
Metric Focus
Develop Rewards &
Recognition
Screen
(interview
and test) for
talent that
loves to
follow
process and
hates
deviation
and defects
Immerse
in tribal
stories
about
consistent
execution
to
customers
and cost
reduction
with equal
or better
quality.
Rigorous
process
certification
Annual
recertification
Root Cause
analysis/
defect
elimination
Communications
focus on
execution
effectiveness,
consistent
execution,
execution relative
to competitors,
cost
effectiveness.
Model operations
excellence in all
employment
interactions, fast
and simple
Metrics focus
on consistent
execution/
low variance,
cost
effectiveness
and results
for all
stakeholders
(customers,
workforce,
investors)
Leadership
skills to
identify
variance and
improve
process,
analytical
talent,
customer,
quality, cost
focus.
Celebrate and
incent
consistency of
customer
execution, cost
effectiveness and
results.
Fixed pay at or
potentially below
market, variable
pay at or above
market.
Competitive total
comp.
STRATEGIC ALIGNMENT EXAMPLE B:CUSTOMER INTIMACYPremium Service for a Premium Price
Recruit/
Select
Onboard Train Work
Environment
Performance
Metric Focus
Develop Rewards &
Recognition
Screen for
pleasing
others and
for ability to
exercise
situational
judgment
when doing
so
Stories
about
delight and
service
recovery
Role play
service
moments
and
recovery
Principles/
outcomes of
service
Service
practice/
role plays
Ongoing
communication
about great service
and recovery,
service rankings
relative to
competitors, etc.
High touch
personalized
service to
workforce
Customer sat
measures,
customer
loyalty,
including
internal
customers
High touch,
build and
apply
emotional
intelligence
Customer
loyalty/
satisfaction,
repeat sales,
celebrate heroic
service acts
Above average
pay for service
delivery
STRATEGIC ALIGNMENT EXAMPLE C:PRODUCT LEADERSHIPBest “State of the Art” Products
Recruit/
Select
Onboard Train Work
Environment
Performance
Metric Focus
Develop Rewards &
Recognition
Screen for
ideation,
innovation,
curiosity in
key
functions
Stories
about
great new
products.
New
product
invention
exercise
Innovation
thinking
combined
with
analysis.
Common
innovation
process.
Communication
about product
introductions
and
performance,
market response,
awards for best
products from 3rd
parties.
Flashy/new
products to
support
workforce.
New product
performance
and market
response,
product
pipeline, new
product
introduction.
Innovation
skills and
analytical
rigor.
Innovation
process
management
New product
market
share/growth/
rank relative to
competitors.
Above market pay
for key product
functions
KEY BUSINESS DELIVERABLES
• Organization and jobs designed to execute strategy
• Talent strength at all levels
• Consistent “A” Grade knowledge
• Extraordinary commitment to vision and strategy across organization
• Execution
• Measured results and continuous improvement
KEY HR SUCCESS METRICS
Leading/Diagnostic Metrics
• Employee surveys (commitment, pride, values).
• 360 Leadership Feedback
• Post employment assessment of new hires
• Performance Results, Differentiation, Ranking
• % of Needs Improvement Performers improved/exited within defined time period
• And More
Outcome/Results Metrics
• Turnover/Retention of successful or better performers
• Productivity
• ROI on Workforce Strategies, Tactics and Initiatives
• Ready Talent Depth/Forecasted Needs
• Improvement in Customer metrics (Market Share, Loyalty, Brand)
• Improvement in Financial metrics (Sales, Profits, Returns)
• And More
WHAT WE GET AS A RESULT…
• Superior ROI on Labor relative to competition
• Alignment of Can, Want and Do to drive achievement of vision, brand
and strategy (Superior Execution)
• Superior Results for all stakeholders and greater total financial
return/value for shareholders