HR omissions, things that HR should do but doesn't delete

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A list of powerful practices that most HR departments don't use

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<p>PowerPoint Presentation</p> <p>IMPACTFUL THINGS HR SHOULD BE DOING BUT IT OFTEN DOESNT</p> <p>High-impact Omitted Practices to Consider </p> <p> 2011</p> <p> Dr. John SullivanProfessor, Author and Advisor to ManagementWWW. DrJohnSullivan.com</p> <p>66 </p> <p>1</p> <p>2</p> <p>Goals for today</p> <p>To make you thinkBut rather than thinking about improving your current practices Instead, to get you to think about what youre not doing And to consider adding 1-2 omitted practices that would really improve productivity</p> <p>Is this the reason for the lower productivity?</p> <p>3</p> <p>4</p> <p>The process I used for identifying these practices</p> <p>I studied the most innovative HR firms to identify next practices (Google, Microsoft, Facebook etc.)Next, I examined the best practices of highly effective/well-funded business functions to identify omitted practices that could be transferred into HR (Finance, supply chain etc.)I will have met my goal if your reaction to at least a handful of these omitted practices is that makes sense, I wonder why we dont do that?</p> <p>5</p> <p>Lets look at omitted HR practices</p> <p>12+ next and omitted practices that can increase productivity and HRs impact (with examples)</p> <p>5</p> <p>6</p> <p>Next practice - Reward great people management</p> <p>Productivity problemMany managers dont spend much time or take their people management responsibilities seriously</p> <p>Although HR owns all of the key components (performance management, performance appraisal, competencies and reward systems), we do not usually reward people management performance</p> <p>What percentage of firms reward managers for their performance on people measures (Source: Stephen Gates of The Conference Board) &gt;</p> <p>(39%)</p> <p>7</p> <p>Next practice - Reward great people management</p> <p>Actions to takeDevelop a people management scorecard for each manager Measure, report and reward managers for outstanding people management results (reward through bonuses and requirements for promotion)Benefits What is measured, reported and rewarded is done first and done bestMgrs. have already learned to respond to rewardsAn example &gt;</p> <p>8</p> <p>Ex. Quarterly people management scorecard</p> <p>Team productivity &amp; qualityEmployee innovation impactsQuality of hiresRetention of key employeesDevelopment of leadersInternal release of developed leadersEmployee satisfaction with feedbackBest practice sharingAverage combined rating on the 8 factors ______</p> <p>Bot. 10%Below aver. Average Top 25%Top 5%</p> <p>Name _________________ Dept._________Quarter # ______</p> <p>Key people mgmt performance factors </p> <p>9</p> <p>Next practice Identify productivity barriers</p> <p>Productivity problemManagers operate in a competitive world... that forces them to periodically increase productivityHR must offer help in the form of internal productivity consultants (IPC) I have found that the most effective approach for increasing productivity is to utilize employees to identify and remove the barriers that prevent productivity improvementHR productivity consultants can help execute the process</p> <p>10</p> <p>Next practice Identify productivity barriers</p> <p>Action Institute a productivity barrier identification and removal process which includes surveys &amp; small groups to identify the barriersBenefits When employees and managers are given the right tools, they excel at identifying these barriersMany barriers are relatively easy to break downProductivity can increase by double digits within monthsAn example &gt;</p> <p>11</p> <p>Productivity improvement process</p> <p>Identify barriers to productivity</p> <p>I need you to increase output by 25%, help me to identify the factors that prevent you from doing that?(200% in two months)</p> <p>12</p> <p>Productivity problems come from 20 key factors </p> <p>The manager Hiring/ retaining top eesLearning/ sharingClear goals / Motivation/reward/ engageEmployee skills degradeRight job placement2 way communicationsPerformance metricsPlans and strategyCollaboration for innovation</p> <p>Prioritize to max impact / focusInfo. for better decisionsTeam member capabilityTools and equipment Inputs/ raw materialsResources &amp; budget A lack of integrationOutside work factors Perceived barriers to productivity/innovation</p> <p>Even policies can impact productivity</p> <p>Our Dog Policy</p> <p>Google's respect and affection for our canine friends is an integral facet of our corporate culture. We have nothing against cats, per se, but we're a dog company</p> <p>Why does it work Spend more time, more cross functional collaboration, aids recruiting/retention &amp; personalized motivation</p> <p>13</p> <p>14</p> <p>Next practice Improve promotions through contests</p> <p>Productivity problemPromoting the wrong people can have dramatic negative impacts on productivity, retention and morale</p> <p>Employees often assume that promotions are biased and are not based on actual abilities</p> <p>Sometimes each team member has not had an equal chance to demonstrate their performance and capabilities</p> <p>15</p> <p>Next practice Improve promotions </p> <p>ActionsPromote people based on their ability to perform in a work problem contest (e.g. Iron Chef)In other cases, let employees appeal when they consider a promotion to be unfair (IBM)Benefits A chance to find and assess many candidatesFewer complaints about bias because the results are performance-based and anonymousSuperior results after a contest promotionAn example &gt;</p> <p>16</p> <p>Internal competitions can improve performance</p> <p>MGM Grand sends a message that performance triumphs over tenure (400%)</p> <p>Learn more about MGMs commitment to its people: http://bit.ly/fotn55</p> <p>17</p> <p>Omitted practice Convert HR impacts into $</p> <p>HR problemCurrent HR metrics fail to WOW senior executives who only understand dollars, revenue and profitHR is often underfunded partially because it uses a different language (turnover, engagement, time to fill etc... vs. profit, productivity and ROI) A focus on cutting costs is not as impressive as increasing revenues</p> <p>18</p> <p>Omitted practice Convert HR impacts into $</p> <p>Action Convert all major HR outputs into revenue impactsInclude the $ impact of great hires, employee innovations, reduced turnover of top performers and the value of developed leadersBenefits Senior managers can see the tremendous $ impact of HR directly alongside the business impacts of other functions (finance, marketing, supply chain etc.)</p> <p>Some examples &gt;</p> <p>19</p> <p>A quick example to illustrate the difference between rev. impact metrics and std. metrics</p> <p>Standard L&amp;D metrics are OK 98% of employees are satisfied with L &amp; D</p> <p>The cost of each L&amp;D hour is down 12% </p> <p>These two could be labeled as so what metrics &gt;</p> <p>19</p> <p>20</p> <p>A quick example to illustrate rev. impact metrics </p> <p>But revenue impact metrics grab your attention$148k is the average yearly sales of a salesperson It is $197k if they completed a job rotation last yr.It averages $249k if they spend 6 hrs. a wk. or more on social networks sharing best practicesIt is $301,000 if the salesperson did bothFor every 7 salespeople that do both, we increase revenue by $1 millionWe have 211 salespeople</p> <p>20</p> <p>Google calculates business impactof a single great hire</p> <p>One top-notch engineer is worth 300 times or more than the average we would rather lose an entire incoming class of engineering graduates than one exceptional technologist.</p> <p>21</p> <p>Alan EustaceSenior Vice President, Engineering and Research </p> <p>22</p> <p>Next practice Offer free time / flexibility</p> <p>Productivity problemThere is a need to dramatically increase ideas, productivity and innovation</p> <p>HR needs an additional effective tool to supplement the barriers to productivity reduction program</p> <p>Next generation workers expect flex scheduling, remote work &amp; free time for their own projects</p> <p>23</p> <p>Next practice Offer free time / flexibility</p> <p>Action Provide top performers with 20 % time or ROWE optionsBenefits When top performing employees are allowed to make their own time and project decisions, productivity and innovation can increase dramatically (i.e. Genentech and 3m)Office/ real estate costs can be cut dramatically</p> <p>3 examples &gt;</p> <p>What is the value of 20% time?</p> <p>What is the measurable bus. impact of 20% time? 54% of Google products started as 20% time Up to 35% of their traffic comes from them (Rough estimate)</p> <p>Google programs initiated during 20% time:Google NewsOrkutGmailAdSenseGoogle TranslateGoogle ReaderGoogle EarthGoogle TalkGoogle MapsGoogle Sky</p> <p>24</p> <p>25</p> <p>What is the business impact of offering a flexible work environment? </p> <p>Results Only Work Environment</p> <p>Pick your hoursPick where you workNo in-person meetings required</p> <p>The business impacts:ROWE individuals have 45% lower turnover ($13 million per year at $102k per employee)When workers switch to ROWE, their productivity jumps by </p> <p>35%</p> <p>Deloitte lets you design a flexible job</p> <p>Mass career customization (Deloitte)Every employee can dial up/ down their job as career aspirations &amp; personal needs change including:Work hoursTravel demandsJob responsibilities</p> <p>Unlike flextime/ job-sharing, all at the location are automatically enrolled to minimize any stigma</p> <p>Results: most choose to dial up their career (66%), Voluntary turnover rates of top performers choosing this option was 200% lower</p> <p>26</p> <p>27</p> <p>Offering no cost short-term projects</p> <p>A free time projects websiteThey offer employees a chance to bid on short-term projectsThese part-time job rotations allow individuals to grow and learn in new areasThe projects also increased the visibility of the participantsThese were free time projects without additional compensationLiterally hundreds of projects have been staffed</p> <p>27</p> <p>28</p> <p>Next practice Increase non-monetary motivation </p> <p>Productivity problemEmployee motivation needs to increase, especially during economic downturns The compensation function focuses exclusively on salary, benefits and bonuses even though a significant % of motivation comes from recognition, praise and feedbackSalary increases and promotions are expensive and permanent and the motivation might not even be maintained</p> <p>29</p> <p>Next practice Increase non-monetary motivation</p> <p>Actions HR must develop non-monetary motivation tools for managers that are easy to use and that produce measurable resultsAlso consider a how to best manage me approachBenefits Research shows that recognition can be an employees highest rated motivation factor (before promotion, money &amp; benefits) Source: Research Journal of Internatonal Studes - Issue 14 (May, 2010)Non-monetary motivation is significantly cheaperManagers can mass personalize the motivators2 examples &gt;</p> <p>30</p> <p>Personalized mot. - Tell us what motivates you (besides $)</p> <p>A survey finds what individuals prefer Employees rank the types of reward and recognition that will have the most impactSome prefer a pat on the back, a small token of appreciation, or public notice in a staff meeting /companywide newsletterThis enables managers to customize recognition, &amp; promote employee satisfaction and retentionBaptist Health Care</p> <p>31</p> <p>Another personalized productivity approach </p> <p>Whats the best way to manage you profileHow often do you want to meet?What is your preferred way to communicatePreferred method of feedbackYour preferred way to be recognizedTop motivators &amp; frustratorsMost impactful rewardsIndividual contributor or team preferenceWhere would you like to be in 2 years?</p> <p>32</p> <p>Next practice Bad manager identification program </p> <p>Productivity problemManagers oversee the single most expensive cost item at most firms Which is? The employees (60% of variable costs) Manager actions have a significant impact on innovation, productivity &amp; the development of eesBad managers may be the #1 cause of turnoverBad mgrs. seldom hire A players / innovatorsManagers are often promoted using criteria other than their people management abilities</p> <p>33</p> <p>Next practice Identify bad managers</p> <p>Actions Develop a bad manager identification programUtilize a survey (for employees and managers) that identifies bad managers based on their actionsAlso use a productivity /performance indexUtilize post-exit interviews as a final approachBenefits Fixing 5% of the bad ones may have millions of dollars of impact on productivity and innovationDell, FedEx, Monsanto have implemented effective BMI programsExample &gt;</p> <p>34</p> <p>Prevent bad managers from bad hiring</p> <p>Google takes extraordinary steps to limit the damage We do everything to minimize the authority and power of the manager in making a hiring decision</p> <p>Managers often want to hire people who seem just like them. So</p> <p>hiring decisions are made by a group. Lazio Bock, Google VP of People Operations </p> <p>35</p> <p>Omitted practice Provide integrated HR solutions </p> <p>Productivity problemManagers are faced with multifaceted problems that simultaneously require at least a partial solution from several different HR functions</p> <p>The solutions that are provided to managers by HR are almost always fragmented &amp; independent </p> <p>Managers prefer a single integrated solution</p> <p>36</p> <p>A typical fragmented manager problem</p> <p>I learned the need for integrated solutions whena GM asked me for a single solution to his problem, which wasIncreasing his output by 12%While cutting labor costs by 8%Increasing innovation by 23%Reducing employee turnover by 20%Increasing his customer satisfaction rate by 37%Increasing revenue by 6.5%What would the name of your integrated HR solution be?</p> <p>36</p> <p>37</p> <p>Omitted practice Integrated HR solutions</p> <p>Action Develop a process for providing integrated solutions that result from all HR functions operating as a boundaryless and seamless team</p> <p>Benefits To a manager with problems, a single integrated solution only requires a single stop in HR</p> <p>An example of the potential choices in an integrated solution &gt;</p> <p> More productiveMake talent more productive and/or innovator</p> <p>Buildinternal talent</p> <p>Movetalent internally</p> <p>Buy external talent (Employee, temp or outsource)</p> <p>When managers need increases in performance and productivity they have 6 basic HR choices</p> <p>Release weak and excess labor </p> <p>Use substitutes for labor (Technology or software)</p> <p>38</p> <p>39</p> <p>Omitted practice Increase innovation by collaboration </p> <p>Productivity problemInnovation has surpassed efficiency as the prime driver of profit </p> <p>Most HR functions dont know the factors that increase innovation</p> <p>Google has led the way in understanding the factors that increase innovation &gt;</p> <p>What is required to increase innovation?</p> <p>Google uses fact-based decision-making so they have a formula for increasing innovation (Algorithm)</p> <p>40</p> <p>Source: K M World Magazine Webinar 2008</p> <p>41</p> <p>Omitted practice Innovation through collaboration </p> <p>Action HR must take steps to increase both continuous self-directed learning and cross-functional collaboration Benefits Continuous self-directed learning is superior to most corporate learning for increasing innovationCollaboration also reduces roadblocks and resistance (TTM)Collaborati...</p>