retooling hr: john boudreau
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“Retooling HR” _________
Presentation Slides
Professor John Boudreau Marshall School of Business and
Center for Effective Organizations (CEO) University of Southern California
John.boudreau@usc.edu 213-740-9814
<john.boudreau@usc.edu>
Version GENT060811• 8 June 2011 Copyright © 2011 John W. Boudreau
All Rights Reserved.
Note: The materials contained here are original copyrighted works of John Boudreau. This is intended as a discussion document. Comments are welcome and encouraged. However, it contains trade secret and other proprietary information of John W. Boudreau. This copy has been provided on the basis of strict confidentiality and the express understanding that it may not be reproduced without express permission from the appropriate author, as indicated in the copyright notice at the bottom of the slide. Please do not copy or distribute this information without prior permission from the appropriate authors, and agreements for the use of licensed material.
Vlerick 8th HR Day Vlerick Leuven Gent Management School
8 June, 2011
Retooling HR
Vlerick HR Day John Boudreau
pg. 18 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
If People Were Valued Assets …Retooling HR
Vlerick 8th HR DayVlerick Leuven Gent Management School
8 June, 2011
© 2011 John Boudreau 1
Professor John W. Boudreau, Ph.D.Center for Effective OrganizationsMarshall School of Business University of Southern Californiajohn.boudreau@usc.edu
• Manufacturing or technology company
Managing the Right Asset?
• High‐growth potential in the long term– Strong market demand
• Constrained resource: – Project engineers to customize the products to
© 2011 John Boudreau 2
the needs of the clients
Retooling HR
Vlerick HR Day John Boudreau
pg. 28 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
Typical Budgeting Objectives
Goals:• Complete certain projects• Add six new project engineers
Actual:
© 2011 John Boudreau 3
Actual:Completed projects
Only added three new engineers
• Completed all objectivesE d b d t
Typical Performance Evaluation
• Expenses under budgetMost systems would reward budget goal
B t th d i i l
© 2011 John Boudreau 4
But, the expenses saved are minimal
They are in a weaker position –compared with if they had staffed as planned
Retooling HR
Vlerick HR Day John Boudreau
pg. 38 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
In a mining company, would you rather be a mine truck or a mine engineer?
People = Precious Resource?
In a petrochemical company, would you rather be a drilling rig or a petroleum engineer?
In the U.S. Navy, is the supply chain for talent or for rivets more sophisticated?
© 2011 John Boudreau 5
At a “brand” company, would you rather be a consumer segment or an employee segment?
ReTooling HR
• Applying Proven Business Tools to Talent• Using Logical Frameworks that Stakeholders
Already Trust and Understand• Knowing The Business MODELS, Not Just
Knowing the Business• Stakeholders Must Ask the Tough Questions• Making Stakeholders As Accountable and
© 2011 John Boudreau 6
gAdept at Talent as Other Resources
Retooling HR
Vlerick HR Day John Boudreau
pg. 48 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
“R * I * S * K”A 4-Letter Word In Talent Management?
• What Level of Work Performance Will We See?• Will Talent Capacity Fit Future Conditions?• How Variable is the Quantity and Quality of Talent in
Our Pipeline?
© 2011 John Boudreau 7
The Logic of “Critical” Talent
• What do HR stakeholders define as “critical” talent?• If you asked 15 stakeholders “where would improving talent 10% make the biggest difference to our ggstrategy” What would they say?
• What do stakeholders define as “critical” supply‐chain or manufacturing processes?
• If you asked 15 stakeholders “where would improving
© 2011 John Boudreau 8
If you asked 15 stakeholders where would improving process capacity make the biggest difference to process outcomes?” What would they say?
Retooling HR
Vlerick HR Day John Boudreau
pg. 58 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
“Kano” Analysis
Delights
Wants
Needs
© 2011 John Boudreau 9
“Return on Improved Performance”
Best Mickey Mouse
tegic Value
There is more value in
BestSweeper
WorstMickey Mouse
© 2011 John Boudreau 10
Strat
Performance
There is more value in improving Sweepers than
Mickey Mouse.WorstSweeper
Retooling HR
Vlerick HR Day John Boudreau
pg. 68 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
Disney Engineers Cedar Point Engineers
“Pivotal” Innovation: Park Ride Engineers
• Imagineering• Himalayas
• Songs
• G-Forces• Shuttle• Blogs
Ph i l St
© 2011 John Boudreau 11
Physiology Story
“Selective” Risk in Airline Talent
© 2011 John Boudreau 12
Retooling HR
Vlerick HR Day John Boudreau
pg. 78 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
“ROIP and Airline Service”
Flight Attendant
tegic Value Pilot
© 2011 John Boudreau 13
Strat
PerformanceLegally Required
to OperateAirline Minimum
ExpectationDiscretionary Employee
Behaviors/Effort
Portfolio Risk and Leadership Planning
• How do your strategy scenarios connect to your strategic workforce planning?
• Faced with multiple possible futures, how do you p p , yprepare your talent portfolio?
• How do strategy scenarios connect to planning for manufacturing facilities, R&D, product development, etc.?
© 2011 John Boudreau 14
• Faced with multiple possible futures, how do you prepare your financial portfolio?
Retooling HR
Vlerick HR Day John Boudreau
pg. 88 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
Should You “Hedge” Leadership Risk?
Ontario Power Generation's blue-chip directors could have been voted "least likely to screw up" .... And yet, they did.
The original 1999 cost estimate of $1.1-billion <to refurbish the Pickering A Nuclear Plant> is now $3-billion to $4-billion. From
1999, the board approved 11 cost overruns and 13 delays,
Most of the utility’s recent directors were recruitedin the 1990s to help privatize OPG, with
© 2011 John Boudreau 15
p psolid financing experience for the IPO, which never occurred.
None had nuclear expertise.
Janet McFarland, “OPG Directors Had Talent, Sadly the Wrong Kind,” December 17, 2003. Globe and Mail. Toronto, ON, Canada.
Talent Sourcing and “Supply Chain”
• What do HR stakeholders consider the “right” amount of time to fill open requisitions for talent?
• What is the “right” level of employee surpluses?g p y p• What is the “right” level of employee shortages?
What do HR stakeholders consider the “right” amount of time to fill open orders for products or materials?
What is the “right” level of raw materials or unfinished
© 2011 John Boudreau 16
goods or work‐in‐process surpluses?What is the “right” level of raw materials or unfinished
goods or work-in-process shortages?
Retooling HR
Vlerick HR Day John Boudreau
pg. 98 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
Applying the Supply-Chain Concept
• IBM’s Global Workforce Initiative– Demand signals must be clear through the chain– Get the language of the work down to 100 roles. HR “owns” the work dictionary
– Make the project demand signals transparent to managers, employees, contractors, recruiters and vendors
• Valero Oil– Measure all talent sources on cost, quantity and quality
© 2011 John Boudreau 17
– Embed supply‐chain logic in the measurement system– Automate decisions by routing requisitions to the sources that have been the best performers
– Combine multiple quality measures to find inflection points
Inventory Logic Retools Talent Management
Inventory Optimization Question Talent Management Question
How many orders should we place in a time period?
How many times should we initiate a talent‐building cycle (hire, train, develop)?
What is the optimal shortage to allow, if we can back‐order replacements?
What is the optimal employee vacancy level to allow if we can hire after the vacancy appears?
What is the optimal order quantity and cycle considering lead‐time?
What is the optimal talent‐buildingquantity and cycle (hire, train, develop) considering how long it takes from start to finish?
If our ordering costs were lower how If the costs of building or acquiring talent
© 2011 John Boudreau 18
If our ordering costs were lower, how much more frequently should we place orders, and what is the new optimal inventory level?
If the costs of building or acquiring talent were lower, how much more frequently would we initiate a cycle? How much more surplus or shortage would we tolerate?
Retooling HR
Vlerick HR Day John Boudreau
pg. 108 June, 2011Copyright © 2011John Boudreau. All rights reserved. john.boudreau@usc.edu
Retooling HR … Getting StartedExpect HR to learn the business logicManage people using your logic frameworksS k t th i k d i i t iSeek out the risks and inconsistenciesFocus on the pivot‐points and inflectionsLogic first, numbers afterRapid‐prototype
© 2011 John Boudreau 19
http://www.marshall.usc.edu/CEO
Further Information
p // /
How to contact John Boudreau at CEO:Office: 213‐740‐9814john.boudreau@usc.edu
© 2011 John Boudreau 20
john.boudreau@usc.edu
Retooling HR. Harvard Business Publishing, 2010
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