valuentis evaluating people management & vbhr function dist

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E P M Evaluating People Management and the Value Based HR Function the Value Based HR Function People Science® People Science® 19 th January 2010 19 January 2010 Nicholas J Higgins CEO, VaLUENTiS & Dean, Int’l School of Human Capital Management DrHCMI MSc Fin (LBS) MBA (OBS) MCMI HR Directors Summit 2010 ICC Birmingham General distribution version

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Page 1: VaLUENTiS Evaluating People Management & VBHR function Dist

E P MEvaluating People Management and

the Value Based HR Functionthe Value Based HR Function

People Science®People Science®

19th January 201019 January 2010

Nicholas J HigginsCEO, VaLUENTiS & Dean, Int’l School of Human Capital ManagementDrHCMI MSc Fin (LBS) MBA (OBS) MCMIHR Directors Summit 2010ICC Birmingham General distribution version

Page 2: VaLUENTiS Evaluating People Management & VBHR function Dist

All models, frameworks and related information contained in this information contained in this

presentation are the sole copyright of VaLUENTiS and the International of VaLUENTiS and the International

School of Human Capital Management 2002-2010Management 2002-2010.

Page 3: VaLUENTiS Evaluating People Management & VBHR function Dist

People Science®People Science®

Analyse, Advise, Implement, Educate

www.valuentis.com

Professional Services

www.ISHCM.com

Page 4: VaLUENTiS Evaluating People Management & VBHR function Dist

Smart. Smarter. Smartest...

Professional Serviceswww.valuentis.com

‘PEOPLE SCIENCE®’

O I

‘The leading human capital management

specialists’

Organisation Intelligenceto

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

SOLUTIONS

Page 5: VaLUENTiS Evaluating People Management & VBHR function Dist

Eight faculties:Enterprise Governance and LeadershipEvidence‐based Management (EbM) Human Capital ManagementHuman Capital MeasurementEmployee EngagementHR LeadershipHR Operational ExcellenceEmployment law...

...1 Masters HCMI practitioner qualification4 executive programmes6 practitioner programmes80 short course modules80 short course modules

Unlimited customised combinations...

One outstanding value proposition

Page 6: VaLUENTiS Evaluating People Management & VBHR function Dist

Content for todayContent for today

1. Human Capital Management2 Employee Engagement2. Employee Engagement3. The Value-based HR Function part I4 Th V l b d HR F ti t II4. The Value-based HR Function part II5. Summary

(including ‘The Repositioning of HR’)

Page 7: VaLUENTiS Evaluating People Management & VBHR function Dist

Part OneA ‘bit’ on Human Capital Management

Page 8: VaLUENTiS Evaluating People Management & VBHR function Dist

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

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

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

Page 9: VaLUENTiS Evaluating People Management & VBHR function Dist

In modern management parlance.....In modern management parlance.....

“What gets measured gets managed.”

Page 10: VaLUENTiS Evaluating People Management & VBHR function Dist

In our HR social science world.....In our HR social science world.....

Evaluation is a more appropriate wordfor measurement.for measurement.

Page 11: VaLUENTiS Evaluating People Management & VBHR function Dist

So consider.....

HUMAN CAPITAL CAPITAL

MANAGEMENT:MANAGEMENT:“Human capital management

is the term which is used to is the term which is used to describe an organisation’s

multi-disciplined and i t t d h t integrated approach to

optimising the capabilities and performance of its

management and employees.”

VaLUENTiS International School of HCM 2006

Page 12: VaLUENTiS Evaluating People Management & VBHR function Dist
Page 13: VaLUENTiS Evaluating People Management & VBHR function Dist

Human capital management as a ‘collective’Human capital management as a collective

Di itDiversityEmployee centricityEmployer brand

Organisation climate

p yLeadership

Human capitalmanagement effectiveness

Organisation communication

Performance orientationOrganisation design

HR FUNCTIONINFLUENCE

effectiveness Performance orientationResourcingReward & recognitionTalent managementTraining & DevelopmentHRHR governanceHR operational excellence

HR FUNCTIONCONTROL

Page 14: VaLUENTiS Evaluating People Management & VBHR function Dist

A conundrum to consider?A conundrum to consider?

People, as we know, for many“People, as we know, for manyorganisations are a prime operatingcost/investment and thus contributioncost/investment and thus contributionto organisation performance.Organisations spend considerableOrganisations spend considerablesums each year carrying out financialaudits; but spend very very little onaudits; but spend very, very little onpeople management effectivenessHC/HCM audits/evaluations Why?”HC/HCM audits/evaluations........Why?”

Page 15: VaLUENTiS Evaluating People Management & VBHR function Dist

Evaluating People management in your organisation: The Organisation Engagement

DIVERSITYTRAINING &DEVELOPMENT

g g g g‘radar/clock’

EMPLOYEECENTRICITY

TALENTMANAGEMENT 813

EMPLOYERBRAND REWARD

674

657599 416

HRGOVERNANCE RETENTION

742

615

431

487684HR

OPERATIONALEXCELLENCE

RESOURCING

487

642

628594603

684

LEADERSHIPPERFORMANCEORIENTATION

796

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

ORGANISATIONCLIMATE ORGANISATION

COMMUNICATIONS

ORGANISATIONDESIGN

796‘Comparable’ (peer)

‘Under-performing’ (peer)

Page 16: VaLUENTiS Evaluating People Management & VBHR function Dist

Ranges and targeting for HR strategy and evaluation purposesevaluation purposes

DIVERSITY

EMPLOYEETALENT

TRAINING &DEVELOPMENT

CENTRICITY

EMPLOYER

MANAGEMENT

584 627

683

650

686

544BRAND REWARD

724795 492

558594 392

HRGOVERNANCE RETENTION

393

479597 660398

HR OPERATIONALEXCELLENCE

RESOURCING736

393621

582401481

405

LEADERSHIPPERFORMANCEORIENTATION

686

613640

633582

561

401

ORGANISATIONCLIMATE ORGANISATION

COMMUNICATIONS

ORGANISATIONDESIGN

703751

Page 17: VaLUENTiS Evaluating People Management & VBHR function Dist

Applications to date...Applications to date...

• HR strategy• Employee engagement

O i i D l• Organisation Development• Cultural assessment

Pre merger integration planning/Change management• Pre-merger integration planning/Change management• Workforce planning• Leadership development evaluation• Leadership development evaluation• Executive development• Individual assessment of each ‘HCM slice’ and appropriate • Individual assessment of each HCM slice and appropriate

intervention with more detailed analysis• Human Capital Reporting• IiP accreditation/Foundation Trust status• HR functional contribution

Page 18: VaLUENTiS Evaluating People Management & VBHR function Dist

Case studies (well vignettes!)Case studies (well vignettes!)

Private • MediaPrivate•Auto•Biotechnology

• Media• Oil & Gas• PharmaceuticalBiotechnology

•Business services•Chemicals

• Professional service firms

• Retail•Construction•Distribution•Food Production

• Retail• Telecommunications• Transport•Food Production

•Financial services– Insurance

p• Utilities

P bli– Investment banking– Retail banking

•FMCG

Public• Local Government • NHSFMCG

•Leisure•Manufacturing/Mining

• NHS• Higher Education • Police

Page 19: VaLUENTiS Evaluating People Management & VBHR function Dist

Delegate takeaway actions....HCMDelegate takeaway actions....HCM

1. What evaluation has my organisation done in the HCM ‘slices’? (if not go to 3.)( g )

2. What has been the driver in each instance?3. Why does my organisation not see

e al ation of people management as evaluation of people management as important?

4. How do we know if any current or past y ppeople interventions have made a difference in our organisation?

5 Is our HR (HCM) strategy hampered by not 5. Is our HR (HCM) strategy hampered by not having sufficient knowledge?

6. As a function how much of an influence are ll hwe really having in improving or maintaining

current HCM performance?

Page 20: VaLUENTiS Evaluating People Management & VBHR function Dist

Part TwoA ‘bit’ on employee engagement

Page 21: VaLUENTiS Evaluating People Management & VBHR function Dist

Employee engagement.....Employee engagement.....

“To understand and use the concept ofl iemployee engagement, one requires

three things:1. A working definition2. A model of components based on reality3. A means of measuring and evaluating

Importance should also be given to its organisational context.” to its organisational context.

Page 22: VaLUENTiS Evaluating People Management & VBHR function Dist

EMPLOYEE EMPLOYEE ENGAGEMENT

Employee engagement is an‘outcome based’ concept Itoutcome-based concept. Itis the term used to describethe degree to which

l b ib demployees can be ascribedas ‘aligned’ and ‘committed’to an organisation such thatthey are at their mostproductive.

VaLUENTiS International School of HCM

Page 23: VaLUENTiS Evaluating People Management & VBHR function Dist

Alignment/Commitment matrix (quick guide)(quick guide)

‘Doing the right things the right

way for the right reason’

Individual’sdegree of Alignment

‘Feeling‘Doing the wrong

things/ wrong ‘Having to stay’

‘Feeling they ought

to stay’

‘Wanting to stay’

things/ wrong way/ wrong

reasons’

Degree ofCommitment

Page 24: VaLUENTiS Evaluating People Management & VBHR function Dist

Or another simpler way to remember (!)remember...(!)

Knows what to do/achieve but

unlikely to Could do more Fullyproductive

Fullycongruent

unlikely to achieve it

More likel to

productive

Less thanMore likely to have

performance/ capability

issues

Job gets done

Less than optimally

productive -Could do more

‘well’

Individual’sdegree of Alignment issues

Likely to have performance,

i di l

More likely to have objective

‘well’

High b bili f

g

attitudinal and/or

behavioural issues

have objective and/or

‘potential’ issues

probability of wasted effort/

frustrationIncongruent

Degree ofCommitment

AffectiveContinuance

Page 25: VaLUENTiS Evaluating People Management & VBHR function Dist

The challenge for the organisation (and HR):

FullyKnows what to

do/achieve but unlikely to

achieve it

Could do more

Fullyproductive

Fullycongruent

achieve it

More likely to have

Less than optimallyIndividual’s have

performance/ capability

issues

Job gets done

optimally productive -

Could do more ‘well’

Individual sdegree of Alignment

Likely to have performance,

attitudinal d/

More likely to have objective

d/ ‘ t ti l’

High probability of wasted

ff t/and/or behavioural

issues

and/or ‘potential’ issues

effort/ frustration

Degree of Aff tiC ti

Incongruent

Degree ofCommitment

AffectiveContinuance

Page 26: VaLUENTiS Evaluating People Management & VBHR function Dist

Alignment/Commitment matrix: Typical indicative map of reality in organisationsTypical indicative map of reality in organisations

Knows what to do/achieve but C ld d Fully

Fullycongruent

do/achieve but unlikely to achieve it

Could do more Fullyproductive4% 8% 21%

More likely to have

performance/ bilit i

Job gets done

Less than optimally

productive -Could do more

Individual’sdegree of Ali t

11% 10% 13%

capability issues

Likely to haveMore likely to have objective

Could do more ‘well’

High

Alignment

Likely to have performance,

attitudinal and/or behavioural

issues

have objective and/or

‘potential’ issues

High probability of wasted effort/

frustrationIncongruent

16% 12% 5%

Degree ofCommitment

AffectiveContinuance

Incongruent

Page 27: VaLUENTiS Evaluating People Management & VBHR function Dist

The unique VaLUENTiS ‘Five Domain’ Framework [for reference]

VaLUENTiS 5D Employee Engagement Framework

Framework [for reference]

Line-of-Sight Work Environment

VaLUENTiS 5D Employee Engagement Framework

Objectives awareness

Behaviour alignment

Role ‘fit’

P f t

Cultural elements

Team dynamics

Communication

ROrganisation

Performance management

Feedback

Capability

Resources

Local management

Physical environment

operating cultureOrganisation designPerformance/talent

management

Remuneration equity

Benefits

Role equity

Career progression

Competencies

Succession planning

‘Corporate’ LeadershipCommunicationDecision rights

Work valuesTrust

Recognition

Promotional aspects

Job/ Role architecture

Training/ Learning

Coaching/ Mentoring

Trust

Reward (equity) Development

VB-HR is a registered trademark of VaLUENTiS Ltd 2003© VaLUENTiS Ltd 2002-10

Page 28: VaLUENTiS Evaluating People Management & VBHR function Dist

The traditional view of employee engagement contributing to improved organisationalcontributing to improved organisational performance...

Higher HigherHigher employee

engagementHigher

productivity

Higherorganisation performance

Page 29: VaLUENTiS Evaluating People Management & VBHR function Dist

The emerging view of human capital management practice and employee engagement contributing topractice and employee engagement contributing to improved organisational performance (as a system)

More effectiveMore effectivehuman capital management

HigherHigher

i tiHigherproductivity

organisation performance

Higher employee

engagement

Page 30: VaLUENTiS Evaluating People Management & VBHR function Dist

However remember the converseHowever, remember the converse.....

More ineffectiveMore ineffectivehuman capital management

LowerLower

i tiLowerproductivity

organisation performance

Loweremployee

engagement

Page 31: VaLUENTiS Evaluating People Management & VBHR function Dist

The importance of employee surveysThe importance of employee surveys

“One of the most common ways ofymeasuring employee engagement isthrough the use of employee surveys.”g p y y

Page 32: VaLUENTiS Evaluating People Management & VBHR function Dist

Employee survey expertise model

HIGH

Employee survey expertise model

HIGH

nt

nag

em

ee

MYOPIC 20/20 foresight

pit

al

man

xp

ert

ise

man

cap ex

UNFOCUSEDBLIND

Hu

m

LOWLOW HIGHSurvey design & measurement

expertise

Page 33: VaLUENTiS Evaluating People Management & VBHR function Dist

HIGH

20/20

ert

ise MYOPIC 20/20

foresightResult:

en

t exp

eResult:

misleading or erroneous

Result: organisation has

sufficient in-depth, robust

nag

em

e erroneous interpretation

knowledge to act upon

pit

al

man

UNFOCUSED

Li it d i i ht

BLIND

man

cap Limited insight

due to limitations of

HCM

Result: end up with ‘garbage

in-garbage out’

Hu

m HCM knowledge

in garbage out syndrome

LOW HIGHSurvey design & measurement expertise

Page 34: VaLUENTiS Evaluating People Management & VBHR function Dist

HIGH

MYOPICMYOPICMYOPIC 20/20 20/20 20/20

ert

ise

MYOPICMYOPICMYOPIC 20/20 20/20 20/20 foresightforesightforesight

en

t exp

e16% 8%

nag

em

ep

ital

man

25%51%

man

cap 25%51%

Hu

m

UNFOCUSEDUNFOCUSEDUNFOCUSEDBLINDBLINDBLINDLOW HIGHSurvey design & measurement expertise

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

Page 35: VaLUENTiS Evaluating People Management & VBHR function Dist

Employee surveys and engagement: T B t ti f th fi ld (I)Ten Best practices from the field...(I)

View or apply employee surveys:

1. As part of a wider enterprise driven focus on people management2. With the appropriate importance (not as a tick-box exercise)pp p p ( )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 interventions4. As an embedded annual/quarterly process not as one off interventions5. With the importance of science in understanding the data and the various

systemic relationships that provide greater understanding and drive more sustainable interventionssustainable interventions

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

Page 36: VaLUENTiS Evaluating People Management & VBHR function Dist

Employee surveys and engagement: T B t ti f th fi ld (II)Ten Best practices from the field...(II)

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)9. In NOT over-focusing on the response ratio recognising that it’s just one g p g g j

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 g y y pp ,external PR

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

Page 37: VaLUENTiS Evaluating People Management & VBHR function Dist

A quote from Albert himself...A quote from Albert himself...

“Everything should be made as simpleibl b t i l ”as possible, but no simpler.”

Thi h t ith th ti This has great resonance with the practice of effective people management and

tengagement.

Page 38: VaLUENTiS Evaluating People Management & VBHR function Dist

The original Sears modelThe original Sears model

RevenueEmployee

Internal service quality

Employee Satisfaction

External Service Value

Customer Satisfaction

Customer Loyalty

Revenue Growth

Profitability

Retention

Employee ProfitabilityEmployee Productivity

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

Page 39: VaLUENTiS Evaluating People Management & VBHR function Dist

Employee engagement and Organisation Performance [example]:Organisation Performance [example]:

We’ve moved on from the Sears model…

‘Macro’ model NHS version 1.11

Human Human C it l Portfolio mixSafetyWork valuesWork values

Leadership &

governance

Leadership &

governance

Shareholder valueTrust

performanceEmployer brand

Employer brand

Capital PracticesCapital

Practices External

Value

Proposition

External

Value

Proposition

Customer SatisfactionPatient

Satisfaction

Customer Loyalty

Patientexperience

Revenue Growth

Quality ofservices

ProfitabilityUse of Resources

Individual/ team

Productivity

Individual/ team

Productivity

Portfolio mixy

X-sellingClinical treatment

ServicePatient focus

Work values

Line-of-sightLine-of-sight

DevelopmentDevelopment

RewardReward

Work environmentWork environment

Employee EngagementStaff

EngagementPortfolio mixPrompt service

X-sellingEnvironmentLoyaltyp

Employee Retention

Staff Retention

‘Local’‘Local’ ComplianceCompliance

ServiceCommunity

Local Management

ocaManagement

Cost controlCost control

© VaLUENTiS VBM Analytics methodology 2008

Page 40: VaLUENTiS Evaluating People Management & VBHR function Dist

Delegate takeaway actions....EEDelegate takeaway actions....EE

1. Who is responsible for the project management of employee surveying in your organisation?

2. What definition of employee engagement do we use in our organisation?

3. What ‘Engagement’ model underpins this?g g p4. Are we aware of how effective our survey is as

an instrument in light of the survey expertise model across:ode ac oss

i. Question-Statement design?ii. Breadth and focus of questions?iii. Balance of QS question bank?iii. Balance of QS question bank?

5. What do answers to the questions posed in the ‘best ten practices’ tell us?

6 In light of my/our answers should we be 6. In light of my/our answers, should we be reviewing our organisational approach?

Page 41: VaLUENTiS Evaluating People Management & VBHR function Dist

Part ThreeA ‘bit’ on the Value-based HR function

Page 42: VaLUENTiS Evaluating People Management & VBHR function Dist

Organisations have a trade-off in terms of optimising performance againstof optimising performance against investment in effective human capital management practice.

More effectivehuman capital management

Higherproductivity

Higherorganisation performance

Th HR f ti i

Higher employee

engagement

The HR function is at the heart of this

trade-off.

Page 43: VaLUENTiS Evaluating People Management & VBHR function Dist

Value Based HR: The HCM-Org System model

HC ReportingOrganisation HC ReportingReporting

HR FcnPriorities

HC(M)Measurement

Enterprise

OrganisationMeasurement

HC/HR FcnStrategy

HR FcnActivitiesHR Governance

Human CapitalPerformance

HC Management

p

Organisation Performance

HC/HRF Value

HR FcnResourcing

gPerformance

Governance

Organisation Proposition(s)

gValue Drivers

43Organisation

Business ModelHR Function

Delivery Model

Page 44: VaLUENTiS Evaluating People Management & VBHR function Dist

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

HighValue Add Corporate Governance

ServicesCorporate Governance

ServicesSimplified Illustration

Professional& AdvisoryServices

Professional& AdvisoryServices

Nature ofActivity

Transaction Services

Employment ServicesEmployment Services

Transaction Services

Marginal

Complexity of InteractionComplexity of InteractionLow

Value Added

High

Page 45: VaLUENTiS Evaluating People Management & VBHR function Dist

The HR Function’s value parameters: (‘the magnificent seven’)( the magnificent seven )

From the organisation perspective...

1. Improving individual and team performance2 Aiding or enhancing decision-making2. Aiding or enhancing decision-making3. Minimising loss of productivity4 Ensuring efficient (HCM) process4. Ensuring efficient (HCM) process5. Fulfilling client-agent need6 Improving employee relations6. Improving employee relations7. 2-way communications with Line management

Page 46: VaLUENTiS Evaluating People Management & VBHR function Dist

Plus this...Th l ‘HR V l C ’The real ‘HR Value Curve’

Value contribution

(per unit)(per unit)

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

Page 47: VaLUENTiS Evaluating People Management & VBHR function Dist

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

Value contribution

(per unit)‘Value

dissonance’

(per unit)

Means that HR can close the expectation gap...

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

Page 48: VaLUENTiS Evaluating People Management & VBHR function Dist

t3.1

Workforce Planning

1.1Employer brand

4.1Needs

Assessment

6.1Total Reward Programme

7.1Employee

Communications

2.1Organisational

Design/ Capability Planning –

5.1Performance

(Talent) Management

8.1Risk Management/

Regulatory Compliance/

9.1HRIS Strategy

10.1Payroll

HR GOVERNANCE

ORGANISATION DESIGN

RESOURCING TRAINING & DEVELOPMENT

PERFORMANCE (TALENT)

MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLL

em

en

t Assessment

8.2Risk Assessment

1.2HR Value

Proposition

Planning BU Level

2.2Organisational

Design/ Capability Planning –

Multi-country Level

2 3

3.2Candidate

Identification Services

4.2General Training

Design, Development and

Delivery

Management Assessment

5.2Performance

(Talent) Management Development

6.2Wage And Salary

Management

7.2Benefits

Compliance/ Security

9.2HRIS Planning

10.2Employee/ Manager

Interaction/ Problem

Resolution

an

ag

em

ap

1.3HR Delivery

Structure

1.4HC Reporting

2.3Organisational

Design/ Capability Planning –

Global Level

2.4Job Classification/

Evaluation

3.3Job Profile Services/

Requisition Processing

3.4Candidate Selection

4.3Training &

Development Management

4.4Technical/

Functional/ Policy & Procedure

5.3Performance

Reviews

5.4Succession

(Talent)

6.3Bonus/Incentive/

Stock Options Compensation

6.4Senior/ Executive

Compensation

7.3Attendance/ Leave Of Absence/ Exit

Interviews

7.4Return-To-Work

and Job Accommodation

10.3Time Reporting

8.3Accident

Prevention and Training

Programmes

8.4Health/Medical Programmes

9.3HRIS Support

9.4Employee

Research &

10.4Special Pay,

Adjustments And

tal

Ma

very

2.5Organisation Restructure/

Change/ Development

1.5HR Capability

Selection

3.5Temporary and

Contractor Staffing

& Procedure Training

4.5Employee Induction/

Orientation

Management Compensation Accommodation

5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company Policies And Procedures

Programmes Modelling

7 6

8.5Incident Tracking

and Reporting

8 6

9.5Benchmarking

Deductions

10.5Payroll

Accounting/ Recon/ Manual Calculations & Disbursement

Cap

ity-D

eli

v

1.6HR Policy

1.7HR Performance/ Strategy Review/

A dit

2.6Acquisition/

Divestiture/ Start-up Due Diligence/

Support

3.6General

Employment Services

3.7Relocation

4.6Competencies/

Skills Model Development And

Assessment

4.7Leadership/ Management D l t

10.6Tax Reporting/

Audit

10.7Employee

Reimbursement

2.7Managing External

Consultants/ O t

5.6Employee Coaching

6.6Compensation Analysis/Pay

review

6.7Healthcare/

Welfare/ Statutory/ Other Benefit P

7.6Collective

Bargaining/ Negotiating/ Consultative Processes

7.7Work Practices

For Represented Employees

8.6Managing External

Consultants/ Outsource Providers

9.6Measurement and

Reporting

5.7Employee

Counselling/ Case management

9.7Employee

Records/Case management/Data

um

an

ti

vit

y Audit

3.8Outplacement

Services

Development

4.8Executive

Development

Reimbursement

10.8Statutory Benefits/

Miscellaneous Admin

1.8Managing External

Consultants/ Outsource Providers

Outsource Providers

Programmes Employeesmanagement

5.8PM Compliance

Support

6.8Pension

Management

6 9

7.8Conflict and Issue

Resolution

management/Data Maintenance

9.8Reporting/ Interfaces

Hu

Ac 10.9

Reporting/ Interfaces

3.9Employment Law

Services

3.10Consulting Line

Managers On St ffi I

4.9Career

Development

4.10Consulting On

Managerial Issues

10.10Managing Outsource P id

6.9Retirement Planning/

Counselling And Administration

7.9Corporate/

Community Social Responsibility

9.9Managing

ASP/software/ Outsource Providers

5.10Managing ASP/ERP/ Software

5.9Consulting To

Line Managers On Performance

Issues

6.10Managing External

Consultants/ O t

7.10Government/

Legislative Issues

Global HR Profiler™© VaLUENTiS 2003-10

3.11Managing

ASP/software/ Outsource Providers

4.11Managing ASP/ERP/ software/

Outsource Providers

Staffing Issues Managerial Issues ProvidersSoftware Providers Outsource

Providers

Legislative Issues

7.11Managing External

Consultants

Page 49: VaLUENTiS Evaluating People Management & VBHR function Dist

What happens to the HR spend?pp pm

en

tp

: n

ag

em

y m

ap

mp

le

l M

an

livery

t exam

ap

ita

ty-D

ecl

ien

t

man

CA

ctiv

itLiv

e

Hu

m A

Page 50: VaLUENTiS Evaluating People Management & VBHR function Dist

Remember earlier the Human capital management as a ‘distilled collective’management as a distilled collective ...

Di itDiversityEmployee centricityEmployer brand

Organisation climate

p yLeadership

Human capitalmanagement effectiveness

Organisation communication

Performance orientationOrganisation design

HR FUNCTIONINFLUENCE

effectiveness Performance orientationResourcingReward & recognitionTalent managementTraining & DevelopmentHRHR governanceHR operational excellence

HR FUNCTIONCONTROL

Page 51: VaLUENTiS Evaluating People Management & VBHR function Dist

HR FUNCTIONS HR FUNCTIONS HAVE HAVE

CUSTOMERS

WRONG!WRONG!

Page 52: VaLUENTiS Evaluating People Management & VBHR function Dist

HR FUNCTIONS HAVE HR FUNCTIONS HAVE CUSTOMER-AGENTS;CUSTOMER-AGENTS;

MANAGERS AND MANAGERS AND EMPLOYEES ARE BOTHEMPLOYEES ARE BOTH

CUSTOMERS AND CUSTOMERS AND AGENTSAGENTS

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THIS IS NOT TO BE CONFUSED WITH THE GOOD PRACTICE OF ADOPTING A PRACTICE OF ADOPTING A CLIENT BASED ETHOS OR CLIENT BASED ETHOS OR INTERNAL SERVICE BASED INTERNAL SERVICE BASED APPROACH WITHIN THE HR

FUNCTION

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To illustrate.....To illustrate.....

Think of an organisation’s performance • Think of an organisation’s performance management system:

– Who is it for?– Who benefits?– Who are the ‘players’ to make it effective?

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Part ThreeA ‘bit’ on the summary

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‘THE REPOSITIONING OF HR’

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HR lexicon – new common termsTh dThen and now......

...1999 ...2009• Employee champion• HR shared services

• Employee engagement• Talent managementHR shared services

• Competencies• Business partner

Talent management• Employer brand• Human capital reportingBusiness partner

• Benchmarking• Knowledge management

Human capital reporting• Reward strategy• HCM intelligence• Knowledge management

• Diversity• HR scorecard

• HCM intelligence• Human capital

management• HR scorecard management

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HCM versus HRM (‘ten for starters’)S NJH blSource: NJH blog (hcglobal.blogspot.com June 2008)

HR FunctionToo often a major focus on delivery structure as an ‘end in itself’

HCM FunctionSees delivery structure as ‘a means’ with subordinated focusstructure as an end in itself

Cost-efficiency focus

Commonly defaults to ‘process’

subordinated focus

Value contribution focus

Defaults to ‘outcome(s)’ as mandate

Benchmarks simple operational metrics in the main

Espouses HRM integration

Comprehensive multi-faceted measurement (evaluation) framework

Executes HCM integration

Evidence based management not practised systematically

Mainly compensates for poor line t

Evidence based management as underlying ethos and embedded practice

‘Expert-monitor’ role to management, tmanagement

Still embodied with Industrial relations legacy

Interventions too often driven by cause

manager as agent

Operates with organisation performance perspective

Driven by business case supported with Interventions too often driven by cause without evaluated business case

In too many cases a rebadging of personnel

Driven by business case supported with cause where necessary

Evolutionary phase from current confusion

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With regard to people...With regard to people...

M t i d i Management is doing things right; things right; Leadership is doing the p gright things.

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

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And so with the HR Function...And so with the HR Function...

HR M t i d i HR Management is doing things right; things right; HR Leadership is doing the p gright things.

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HR going forward (as HCM):HR going forward (as HCM):

• ‘Business’ mindset with evidence-based approach• Much stronger link between strategy, measurement g gy,

and people management effectiveness• Far more sophistication and integration of IT enabled

processes• More analytical and measurement reporting skills• Decreasing administrative focus (‘taken as a given’)• More innovation around HR functional delivery (for

example the ‘product-service’ construct)• HR function working as a collective not ‘silo’ strands• HR people having T-based skills profile not generalist

versus specialist

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Ten common areas of HR function i t

HCMimprovement.....Personnel

20142015

201620

201420152016

7...

20112012

2010

20132014

20112012

2010

20132014

20102010

The reality choice for HR functionsfor HR functions

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Delegate takeaway actions....VBHRFDelegate takeaway actions....VBHRF

1. Which function are we HCM or HR? (tick 1 only for each parameter)

1. HR or HCM2. HR or HCM3. HR or HCM4. HR or HCM5. HR or HCM6. HR or HCM7. HR or HCM8. HR or HCM9. HR or HCM10.HR or HCM

HR OVERALL HCM

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Questions

64