hr transformation through hrbp - 2015 09 13
TRANSCRIPT
Michael S. Foss September 13, 2015
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Through my background in management consulting (Deloitte Consulting) and as a global practice leader within a Human
Resources (HR) function of a multi-billion dollar global enterprise (Amway1), I have developed a vision for transforming the
entire HR function into a strategic business partner.2 The opportunity is to build organizational capability and discipline in
human capital strategy3 & analytics and to institute HR Client Service teams; thereby, creating a sustained approach for how
HR works with business areas to identify solutions and leverage their organization and talent in strategy execution.
The HR function, not just the business partner role, offers the highest impact partnership role to business leaders through the
disciplines of Organizational Effectiveness4 and Strategic Workforce Planning5. To simplify this concept, the discipline of
integrating the organizational and talent strategies into business planning can be referred to as “Human Capital Strategy”.
Point being, the HR Business Partner (HRBP) cannot and should not be the lone business partnership role in HR’s service
delivery. Rather, using the discipline of Human Capital Strategy — HRBPs, HR Generalists, and Centers of Excellence
(COEs) work as part of an HR Client Service team with distinct roles & responsibilities to plan-for and execute
organizational and talent solutions aligned to business strategy execution. This HR Client Service Team approach positions
the entire HR function into a business partnership role.
The following sections provide a brief perspective on the value of this concept:
I. Examples of Successfully Applying Human Capital Strategy at Amway
II. Transform How the Entire HR Function Can Effectively Operate as a Strategic Business Partner
III. Proof of Concept, Affecting Change at Amway
IV. The Business Case for Human Capital Strategy
I. Examples of Successfully Applying Human Capital Strategy at Amway
Three cases of approaching business partnership through multiple disciplines from HR using human capital strategy:
Utilized an organizational assessment framework to identify opportunity areas for consolidating Asia Pacific
Regional Payroll – net impact reduced 25% of Payroll FTEs in Malaysia (pilot country), with additional 50%
reduction region wide – Payroll consolidation was also identified as a critical next step in the enterprise adoption of
the global SuccessFactors Employee Central implementation
Adapted the strategic workforce planning methodology to support the development of California’s Manufacturing
operational long-range strategy – by doing so, the Manufacturing leaders and HR created three staged scenarios
demonstrating progressive improvements to operational KPIs by shifting how work is organized and sourced
(internal versus contract labor); stage one was approved and is in execution
Applied the organizational effectiveness methodology to determine future staffing size of the China Region’s Shop
(retail) operations (60% of total regional headcount, serve 40% of enterprise revenue) – net result reduced budgeted
Shop staff levels by 17% through 2016 while sustaining focus on critical customer interfacing activities
1 Amway (a.k.a. Alticor Inc.), a USD $11bn fast moving consumer goods manufacturer and direct selling company operating in over 100 countries with
21,000+ employees 2 Michael Foss presented “Driving Human Capital Strategy with the HRBP” at an Institute for Corporate Productivity (i4cp) Exchange. August 2015, and
presented "Building a New HCP Practice" at the Talent Management Alliance's "Workforce Planning Conference". Las Vegas, Nevada. June 2014
3 Strategy – “A business strategy is a set of guiding principles that, when communicated and adopted by an organization, generates a desired pattern of
decision making.” Watkins, Michael. Harvard Business Review, “Demystifying Strategy: The What, Who, How, and Why”. September 10, 2007.
4 Organizational Effectiveness – aligning organizational components (e.g., goals & measures, processes, governance, design) to business strategy execution
5 Strategic Workforce Planning – aligning talent management activities in order to have the right people, in the right place, at the right time, for the right price
Michael S. Foss September 13, 2015
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II. Transform How the Entire HR Function Can Effectively Operate as a Strategic Business Partner
Two critical considerations for this HR transformation:
Institute an HR Client Services Team, internal human capital consulting capability, with roles focused on:
o Account Management (typically an HRBP) – partnering with business leaders (clients) on identifying
opportunities for human capital strategy and solutions
o Client Service Team (project team comprised of HRBP, HR Generalists, and COE members) –
development and execution of plans aligned to the business strategy
o Methods & Analytics Team (typically COEs) – development and configuration of organizational and talent
methodologies, tools, and analytics to be utilized by the Business Partner and Client Service Team
Engage the business areas in application of human capital solutions through the strategic business partner role —
this requires Business Partner skill development in stakeholder management, analytics, and storytelling to support
informed decision making regarding a business area’s human capital (organization and talent)
III. Proof of Concept, Affecting Change at Amway
Currently, I am building and leading a new Global Human Capital Strategy and Planning (HCP) Practice at Amway. The
HCP practice designs the strategic approach and develops HR Business Partner capabilities for advising business areas on
how organizational structure and talent improve execution of the business strategy.
Key organizational changes implemented to transform HR business partnership (client service):
Embedded a Human Capital Methods Team (HCP) within the HRBP Organization
Published methods and tools in Organizational Effectiveness, Workforce Planning, and Human Capital Analytics
Instituted HR Client Service Practice Teams focused on delivering HR programs, processes, and initiatives to
Amway’s business areas with clearly defined roles throughout the HR function
Developed HR Service Expectation & Partnership documents outlining what HR delivers to the business and the
roles & responsibilities regarding that delivery (similar to a service level agreement)
Designed four Regional Human Capital Planning sub-practices to support local configuration of tools, and to drive
strategic project delivery and business application
Michael S. Foss September 13, 2015
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IV. The Business Case for Human Capital Strategy
Successful execution of business plans depends on the business’ people, processes, and technology –
effective utilization of “people” comes from a human capital strategy
Labor costs can be ≈ 60-70% of operating expenditures, with outside services and temporary labor comprising an
additional ≈ 10-20% — all of which are an outcome of a business’ human capital strategy
HR programs should be managed as a portfolio of solutions oriented to supporting business strategy execution,
opposed to a set of discrete practices business areas must comply with on a periodic basis
When done well, human capital strategy has two business applications.
Developing HR’s organizational capability in human capital strategy will transform how the HR function partners with the
business. I welcome the opportunity to network and discuss experiences and observations regarding human capital strategy
and analytics with others currently building this capability or exploring the concept further.
All the best,
Michael
Two Applications
Business Strategy
HR Strategy
Directly contribute to business strategy execution
through human capital-based solutions
Prioritize and rationalize HR investment related to
business objectives
Near-term: Support the business areas in
efficiently managing their operating
expenditures and resources
Long-range: Create a high-performing
organizational environment and a sustainable
pipeline of talent
Near-term: Prioritize and coordinate HR
service to fit business needs (use what exists)
Long-range: Drive business context into HR
program and strategy design (evolve HR
service delivery)
1. 2.