state of idaho enhancing the effectiveness of the hr function in today’s business environment...
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State of IdahoEnhancing the Effectiveness of the HR Function in Today’s Business Environment
SEPTEMBER 20, 2011 NEVILLE KENNING
2© 2011 Hay Group. All rights reserved
About Hay Group: The facts and figures
84 Offices in48 countries
2600 Employees worldwide
8000+ clients $470m Revenue
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Hay Group experience
Hay Group has extensive experience and has a proven track record in consulting with the Public Sector throughout the USA
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Hay Group experience (cont’d)
State of Alabama
State of Arizona
State of Colorado
State of Delaware
State of Florida
State of Idaho
State of Kansas
Commonwealth of Kentucky
State of Louisiana
State of Maine
Commonwealth of Massachusetts
State of Minnesota
State of Mississippi
State of Montana
State of Nevada
State of New Hampshire
State of New Jersey
State of New Mexico
State of North Dakota
State of Oklahoma
State of Oregon
Commonwealth of Pennsylvania
State of South Carolina
State of South Dakota
State of Washington
State of West Virginia
State of Wyoming
Government of Guam
Hay Group has worked with a wide range of State Governments, such as:
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Achieving strategy through people
ResultsStrategic
objectives LeadershipManagement
processes andsystems
Organization,team and job
design
Reward and recognition
Work processesand business
systems
Individualand team
competence
Values and culture
Integrated alignment process
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Does HR add value?
-“nestling warm and sleepy in your organization, like an asp in Cleopatra’s bosom, is a department whose employees spend 80% of their time on routine administrative tasks. Nearly every function can be performed more expertly by others for less cost. Chances are its leaders are unable to describe their contribution to value added except in trendy, unquantifiable and wannabe terms, yet, like a serpent unaffected by its own venom, the department frequently dispenses to others advice on how to eliminate work that does not add value. I am describing, of course, your HR Department and have a modest proposal: Why not blow the sucker up?”
(Thomas Stewart- The Leading Edge- Fortune Magazine January 15, 1996)
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Business Imperatives
Traditional Practice
Strategic Intent
OrganizationalCapability
Human Capital
HR ServiceDelivery
HR processestransactions
HR recruitsfor open jobs
HR for HR professionals
HR responds to
requests
HR isolated in
HR
Leading Edge
Managers ‘own’ people issues
Web-based portals / ‘paperless’
administration
Strategic talent management
Focus on Future Leaders
Precision workforce plans
HR drives strategic
solutions and leads effort
HR focus on OD to drive business results, promote agility & clarity
HR illuminates strategic issues to help drive the
business forwardHR aligns activity
with business strategy
HR proactively sources
talentManpower &
Succession plans
HR delivery streamlined by technology & outsourcing
HR partners on solutions
HR engages the business in
capability debate
ProgressivePractice
The HR journey
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Defining the HR operating model
Transformational/Consultative
Transactional/Operational
People/ServiceDelivery
Policy/Process
Development
HR Business Partners “Corporate” HR
Centers of Excellence
HR Administration/Shared Services
HR Discipline LeadershipOperational Excellence
Strategic ImpactCustomer Intensive
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No universal recipe for HR structure
Ideal design depends on business needs and readiness Role of HR: operations vs. business value Burning platform: cost vs. service Focus of control: centralized vs decentralized Complexity of the organization Key HR processes Nature of employment Technology status Change orientation Investment capacity Implementation capacity Courage
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What are the characteristics of high performing HR functions?
This database of the Most Admired Companies has been captured by Fortune/Hay Group over the last 11 years
Organizations were rated by CEO’s, Senior Managers and Analysts against a range of attributes
Top performing clients were then interviewed to understand the precise practices that drove these judgments
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Top quartile characteristics: the value chain
HR Planning Attraction & Recruitment
On-Boarding Performance Management
Development Transition
Translate Business strategy into required jobs and people
Move beyond today’s needs to skills of tomorrow
Link internal capability with demand pressure points
‘Walks the Talk’ of mission, value and culture
Creates strong link between the company and employee brand
Takes a rigorous approach to selecting employees for the longer term
Identify key challenges up front
Create 30-60-90 day plan
Ensure a clear commitment to implementing high quality process
Measure a broad range of lead and lag indicators
Clarity is driven deep into the business
Holds people to account
Creates cross-organizational working culture
Makes leadership development a top priority
Invests early in leadership development for mangers
Spots future stars early and supports their progress
Trains the team
Makes leaders accountable for creating leaders
Clear understanding of managerial capability
Create stretch assignments
Support transition through active training & development
Match person to required skills
Match role to personal motivation
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Plan resourcing and HR delivery
Typical practices Below Benchmark
React to short-term supply pressures Exclusive focus on today's skills and capabilities Fails to link future demand requirement to quality of current supply
Top Quartile Benchmark Clear translation of business strategy into required jobs and people Move beyond today's skills and capabilities to consider those the organization will
need to survive and compete in the future including how they can be assessed Deep understanding of what capabilities will be more/less important in future and
understanding of current capability against these benchmarks
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Attract and recruit people
Typical practices Below Benchmark
Hire people for jobs not careers to meet short-term needs without considering longer- term requirements of the business
Maintain static competence models HR levers are not aligned to re-enforce the “image” of the organization
Top Quartile Benchmark Create strong links between the organization and employee identity Deliver on its promises of mission, values and culture Take a rigorous approach to selecting employees with an on-going re-assessment on
the competencies for success for the longer-term
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On boarding people
Typical practices Below Benchmark
Have no clear on-boarding process for supporting leaders but relies on managers ‘picking it up as they go along’
Let managers off the hook in implementing agreed process
Top Quartile Benchmark Formally address key questions about the new role and its implications for
maximizing performance Develop 30-60-90 day plan Culture strongly supports need for high quality process/content and necessary
development for leaders to do this
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Developing people
Typical practices Below Benchmark
Only provide leadership training for Senior Leaders Place over-reliance on ‘promotion through the ranks’ to enable leadership
development Focus on individual development rather than working more effectively in teams
Top Quartile Benchmark Leadership Development is a key Top Executive priority Invest early in Leadership Development Spot future stars early and support their progress Development linked to improving team performance not just individual performance
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Manage people’s performance
Typical practices Below Benchmark
Strong focus on lag indicators Lack of courage, consistency or understanding causes a failure to tackle
performance issues Failure to align all HR levers to reinforce consistent messages, (reward, culture,
performance management, succession)
Top Quartile Benchmark Equal focus on lead and lag indicators ‘Line of sight’ between strategy and roles is clear throughout the organization Poor performance is tackled Performance measures support need to work across boundaries
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Transition people
Typical practices Below Benchmark
Are not good at giving stretch assignments; based on leadership potential vs. technical ability
Do not have a systematic way of planning for moves on a pro-active basis but tend to be driven by events
Top Quartile Benchmark Clear understanding of managerial capability Create stretch assignments Transition supported through active leadership training and development Role matched to peoples skills/competencies and motivation
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Do our HR professionals have what it takes to thrive and be effective in today’s business environment?
Can we move from often being perceived as “centralist controllers” to being effective business partners who are effective problem solvers with our internal “clients?”
Successful HR transformation requires our HR professionals to have a necessary blend of HR expertise and consulting skills, together with critical competencies to help our “customers” to identify and solve business issues
Issues for the human resources function
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StrategicPartnering
Services Delivery
Administration
Costs Value Added
10%
30%
60%
60%
30%
10%
Value added human resources
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Manage work culture, including the integration of different work cultures Attract, develop, and retain the next generation leaders Become a more effective business partner Help the organization reinvent/redesign itself to serve more effectively
Expectations of the HR function
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Reduce routine, low value added work Align HR culture with Organizational culture Shift mindset from “HR Professional Expert” to “HR Process Expert/Consultant”
Human resources organizational change
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CoachRelationship Manager
Trainer
ProjectManager
Content Expert
Facilitator
DoerHR
Consultant
The HR internal consultant “hats”
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Leadership Listening, understanding and responding Analytical thinking Strategic business sense Impact and influence Teamwork and cooperation Achievement motivation Conceptual thinking Developing others Customer-service orientation
Critical HR competencies
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Evaluating the Outcomes
Implementing the Solution
Diagnosing the Situation
Contracting/Partnering with Clients
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The consulting framework
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Establish credibility and trust Understand client’s business Active listening Strong communication skills; easily understood Analyze and synthesize issues Understand multiple perspectives Good conflict management skills Diagnose and suggest appropriate interventions/solutions to help client meet
their objectives Provide feedback without creating defensive reactions Accept feedback without reacting defensively
Consulting skills needed
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Regulate clients Risk adverse Direct persuasion Technical expert HR results focused “Transactions” (e.g., benefits,
compensation, administrative)
Resource to clients Calculated risks Influence Process expert Business results focused “Transformations” (e.g., process
change, strategy, cultivating knowledge, developing talent networks)
Blending HR expertise with consulting skills
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Centralized vs. decentralized
It doesn’t need to be an either/or The key is to define “who is accountable for what” and then establish the means by
which these accountabilities will be implemented: Policy Execution Review
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What can we learn from other States?
Full range along the spectrum of how HR is organized and does business Example of Centralized – South Dakota Example of Decentralized – Texas The Importance of an HR Business Plan – South Carolina Effective Use of Single Point of Contact – New Mexico Effective Use of Measuring HR Effectiveness – New Mexico Effective Use of Technology for Communication of a Major Initiative – Wyoming
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In summary
Manage work culture including the integration of different work cultures and organizations
Attract, develop and retain the next generation of leaders Help the organization to re-invent and re-design itself to do business more effectively Deliver core HR/Administration functions in a timely and efficient manner through the
enhanced use of technology and data The optimal mix of Centre of Excellence specialist advice and Division focused
generalists Provide value-added internal consultancy services - provide HR partners who
understand the human capital implications of business problems and can develop solutions to address them
HR services that are characterized by a focus on internal customer satisfaction A common policy framework and consistent application of policies