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Robert Garcia, Director – Global Business
Society for Human Resource Management
The Role of the HR Professional in Creating a High Performance Organization
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Objectives
• Identify key leadership skills for HR Professional
• Demonstrate effective internal consulting skills
• Demonstrate business acumen and an understanding of the financial drivers of company performance
• Align your recommendations with the strategic direction of the organization
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Robert Garcia, MBA, SPHR, GPHR, HRMP, HRBP
Director – Global Business Development
Society for Human Resource Management
• 20+ years of experience in business & human resources
• BS, Business and Management
• Master Business Administration
Instructor Biography
Robert Garcia, MBA, SPHR, GPHR, HRMP, HRBP
Director – Global Business Development
Society for Human Resource Management
• 20+ years of experience in business & human resources
• BS, Business and Management
• Master Business Administration
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Think outside the box – go beyond paperwork
HR Professionals
Provide advisory services to managers
Develop capabilities & provide services
• Change management • Facilitation • Develop a compensation strategy • Build performance plans • Coaching managers • Team building support • Process improvement
• Ask questions to identify needs & help managers solve problems
• Listen • Look for policies & regulations to
meet needs • Identify the real issue & propose
the right intervention • Be flexible – develop alternatives
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Shift Your Role
Becoming an HR Professional Requires a Shift in Your Role
• How you see yourself
• How you behave
• How you interact with senior leaders
• How you are seen by senior leaders
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Learn About the Organization & Its Mission
Do you know: • How other functions operate?
• Responsibilities of other functions?
• How other functions contribute to accomplishing the mission?
What challenges does the organization you support face?
You will be able to position HR issues in terms of the business!
Product Development
Marketing Information Technology
Production
Sales Human Resources
Finance
Distribution
Purchasing
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Do You Know…?
• Your Company • Your Business Unit
What are the top 3 issues for:
• Strengths • Weaknesses
Who are the major competitors?
What are the drivers of revenue? What are the drivers of cost? What is the strategic direction for the business?
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What You Need to Know HR Knowledge • Best Practices • Change Management • Facilitation • Comp & Benefits • Coaching
Organizational Knowledge • Strengths • Weaknesses • Processes • Procedures • Structure
Organizational Direction
• Short-Term Goals • Growth Strategies • Strategy for the
future
Organizational Leaders • Goals • Relationships • Structure
Apply knowledge
to anticipate barriers, surface issues and
develop HR solutions
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Questions that a Strategy Answers
• Who are we as an organization?
• What should we be doing as an organization?
• What are the needs or problems that require our existence both today and tomorrow?
• How do we recognize these problems?
• What makes us distinctive or unique?
• Where is our organization now?
• Where does our organization want to go?
• How will we get there?
Defining Strategy
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Lesson 1: Understanding Organizational Strategy
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Introduction Growth Maturity Decline
Crisis: Leadership
Need: Creativity
Crisis:
Delegation
Need: Clear direction
Need: Formal systems
Crisis:
Bureaucracy
Crisis: Change
resistance
Need: • Streamlined
decision making • Flexibility • Small-organization
thinking
Organizational Life Cycle
The Strategic Planning Process
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Lesson 1: Understanding Organizational Strategy
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Environment Assessment
Customer/Market & Competitor
Analysis
Organizational Assessment
Mission/Vision/ Values
Strategic Issues, Goals and KPIs
Plan Implementation
A 6-Step Approach to Strategic Planning
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Lesson 1: Understanding Organizational Strategy
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• Is the current plan working? If so, in what areas?
• What’s not working? How could it be improved?
• How is it being tracked? How does the organization measure its success?
• Is the strategic plan communicated to staff within the organization?
• Ask “what if” scenarios to determine how the organization will adjust to
changing conditions.
• What components of the plan are reusable?
Questions to Ask About the Existing Plan
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Lesson 1: Understanding Organizational Strategy
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PEST Analysis
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©SHRM 2014
Political (P) Factors Social (S) Factors
• Tax policy • Political stability • Changes in the political landscape • Laws and regulations • Trade policy
• Demographics of customers and employees
• Work/life balance • Expectations about the work
environment • Priorities in the culture
Economic (E) Factors Technology (T) Factors
• Overall growth in the economy • Interest rates • Personal income/spending
• Related research • Technology paths / rate of change • Automation
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• One way to develop KPIs is to think in terms of:
– Indicator – What are you going to measure?
– Measures – How are you going to measure it (both quantitative and qualitative)?
– Target – What is the desired result?
KPI Example:
– Indicator – customer satisfaction with department services provided
– Measures – customer satisfaction index based on quarterly surveys
– Target – 5% improvement in customer satisfaction index quarterly
Key Performance Indicators (KPIs)
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• Human Resources
– Employee loyalty, turnover, retention labor relation, compensation, training and development, recruitment
• Sales – Sales contact by telephone, shops and supermarkets management, customer
loyalty, customer care
• Marketing – Public relations, promotion, advertisement, e-marketing – Creating a strategy document for a specific campaign – Site traffic – Buzz level – volume, tone, dispersion – Viral video impact – Search volume – Number of impressions
Sample Key Performance Indicators (KPIs)
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Lesson 1: Understanding Organizational Strategy
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Customer Perspective
X% of customers indicate a “high” or greater level of satisfaction
Reduce the number of customer complaints by X%
Financial Perspective
Increase the amount of returns/revenue by X%
Reduce the amount of labor hours expended on administrative functions by X%
Process
Perspective
Reduce the # of errors identified during the process by X%
Reduce process inconsistencies across programs by X%
Innovation & Learning
20% of employees’ performance scores will be tied to obtaining at least X hours of applicable professional development each year
40% of managers’ performance scores will be tied to the development of their reports, as evidenced by additions to Skills Database
Example Metrics
Metrics
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Lesson 1: Understanding Organizational Strategy
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Ask Questions
Support others to solve problems
• Listening & interviewing skills
• Awareness of own problem solving style
• Acceptance or appreciation of different styles
• Model of how people solve problems
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Diagnostic Questions
I – Data Gathering Taking Action – IV
Planning the Solution – III II - Analyzing
Is there anything happening right now? What have you tried? What have you accomplished?
Describe exactly what happened Walk me through it What are the facts?
What are your plans? What are the strengths & weaknesses? What is the first step?
How would you categorize this issue? Why might this happen? What do you think is the problem?
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What Is the Real Issue?
Ask questions
Identify cause and effect relationships
Determine the root cause or real issue
State the Real Issue
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Communicating with Impact
• Link your ideas to the interests of the other person
• Be sensitive to how the other person prefers to receive information
• Be sure you understand the other person’s point of view
• Recognize his or her position even if you disagree and treat it as valid
• Be sure you know what you want out of the encounter
• Use multiple communication methods
• Be flexible and prepared to change your approach if you get new information or face resistance
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Audience Analysis
• Who is the audience?
• What do they value?
• What are their challenges?
• What’s on their worry list? Why?
• What do you want them to do? Or think?
• What must they believe in order to value your solution?
• How do you make them believe?
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Influence Skills
• Influence to: – Gain support for positions or
ideas
– Inspire others to take action
• Identify “what’s in it for them”
• Clearly articulate the idea and benefits
• Make sure they feel respected not manipulated
• Be flexible in communicating your ideas
• Consider timing – is the other person open to your ideas?
• Consider the messenger – are you the best person to advocate a position or idea?
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Techniques
• Approach people with friendliness and warmth
• Share your point of view frankly but neutrally
• Listen openly to others' opinions
• Be willing to negotiate
• Express appreciation
• Come on strong and don't back down
• Make people feel inferior and defensive
• Raise your voice in frustration
• Cut people off
• Express disbelief and impatience with their suggestions
Influence No Influence (avoid)
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A Model for Making a Point
State it
• The message
Explain it
• Elaborate on what you mean
Illustrate it
• Give an example – facts, data and / or story
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Maintaining Contact
• What can you do to remain in contact with internal clients?
– Send articles that may apply to them
– Call to discuss specific ideas
– Ask about specific events, issues in their department
• Think “How can I add value in advance?”
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Building a Better Case
Contents
A. Executive Summary
B. Context
C. Project Description
D. Implementation Timeline
E. Solution & Alternatives
F. SWOT Analysis
G. Financial Analysis
H. Result / Recommendation
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SWOT Analysis
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Strengths Opportunities
Weaknesses Threats
• What are the strengths of the initiative?
• How will they be maximized?
• What new opportunities result from this initiative?
• How will they be fully leveraged?
• What are the weaknesses?
• How will they be minimized?
• What threats exist as a result of this initiative?
• How will they be prevented or at least minimized?
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Financial Analysis
• Determine initial investment
• Identify on-going costs and benefits directly associated with the proposed initiative
• Develop annual incremental cash flows over the entire expected project life
• Discount each project year annual cash flow at the appropriate hurdle rate (cost of capital)
• Analyze investment viability with multiple tools . . .
> NPV - Net Present Value
> IRR/ROI - Internal Rate of Return/Return on Investment
> PB - Payback Period
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Steps in the financial analysis process include . . .
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Strategic HRM
Demographics and
Diversity
Changing Worker
Attitudes/ Values
Outsourcing Technological Advancement
Globalization
Connecting Organizational Strategy to HR Strategy
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Lesson 2: Formulating an HR Strategy
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HR Strategy
Talent Acquisition
Performance Management
Total Rewards
Training and Development
Talent Engagement
Five Major Components of an HR Strategy
Steps in Creating an HR Strategic Plan
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Lesson 2: Formulating an HR Strategy
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Example: Improve Talent Acquisition Process
Short-Term Indicators Long-Term Indicators Data Required
• Number of processes changed
• Number of employees hired under new system
• Increase in productivity
• Reduction in hiring cycle time
• Employee satisfaction in hiring process
• Baseline productivity numbers
• Baseline hiring cycle time
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Establish Success Measures
Measures of Success
©SHRM 2014
Lesson 3: Creating and Executing an HR Implementation Plan
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What Strategic Leaders Say
Build your skill as a strategic contributor
Track metrics that managers value
Ensure HR role is running smoothly
Learn about the organization
Ask: How can HR make a difference?
Move away from the policing role!
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Move towards a partnership role
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Build on the Basics to Ensure a Strategic Focus
Strategic Focus • Understand the competitive environment and your industry • Know the projections and direction for the business • Identify what HR needs to do to support the direction • Develop HR solutions to support the organization direction
HR Transactional Processes • Comp & Benefits
• Employee Development • Staffing • Legal & Regulatory • Employee Relations
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Personal Commitment
What is your key learning from today?
What is one idea that you will put into practice when you return to
your office?
What is one thing that you will share with others when you return to your
office?
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