strategic hr business partnering

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A presentation describing HR Business Partnering in terms of its principles, methods and metrics, using Management Consultancy as a benchmark to identify their approaches to adopt within an internal HR team.

TRANSCRIPT

  • January 2010

    HR as a Strategic Business Partner

    Roy Mark FCIPD

    Total HRM Ltd

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    The human resources trade long ago proved itself, at best, a necessary evil and at worst, a dark bureaucratic force that blindly enforces nonsensical rules, resists creativity and impedes constructive change . It is a career graveyard for people who cant make it in other parts of the business

    Non-HR Perspective

    Keith Hammond Fast Magazine 2008

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    Leadership in HR doesnt have the respect of organizational leadership. Until that is resolved, we are an overhead

    HR Perspective

    www.hr.com Survey 2008

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    we have made great strides in moving from a traditional/corporate group to a business partner, with strong growth in learning, leadership and talent. Developing a comprehensive people strategy is one of the top three executive goals for 2008-09

    HR Perspective

    www.hr.com Survey 2008

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    Rather than can do I prefer will do and more often than not have done.

    For me HR Partnering is about engagement and involvement. Back to the floor exercises, running a line department for a while, covering holiday roles, taking projects outside their comfort zone and being subsumed into the business while retaining an holistic view make HR a relevant business partner.

    Martin Dorchester

    MD DSGi Business

    2009

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    How many more PCs will we sell.

    MD DSGi Business

    2005

    (when presented with an elaborate succession planning process)

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    Learn - Energize - Inspire

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    dream

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    how

    Strategies for HR to earn a place in the Boardroom

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  • 7 Key Beliefs:-

    Customer 1stSpeed of ExecutionContinuous ImprovementConstant respect for peopleUncompromising IntegrityLead by ExampleAlways seek win-win solution
  • Behaviors

    Customer 1st Listen to customers Treat customers as friends not enemiesBe courteous , respectful and professionalSpeed of Execution Sense of urgency.Be responsive .Make fast decisions Continuous ImprovementAlways believe there is a better wayChallenge the status quoSeek new ways of doing thingsConstant Respect for PeopleFocus on the issue , not the person Remember -- Everyones role is important Seek first to understand.
  • Behaviors

    Uncompromising Integrity/Trust HonestyKeep your wordMaintain confidentiality Lead by Example Be supportive Say what you do and Do what you sayBe a coach and role modelAlways seek win-win solution Be objective Be open minded Collaborate and compromise.
  • What are Management Consultants and what can an in-house HR Team replicate?

  • Historical & Future Trends

    DatesFocusHiresTypical Firms1890 1940Technical AnalysisAcademicsAD Little, Booz, Allen, Hamilton, AT Kearney.1940 1970Strategic ManagementMBAs & AcademicsMcKinseys, Bain & Co., Boston Consulting Group1970 1990Technical & Financial SpecialismsGraduates, MBAsArthur Anderson, KPMG, IBM, Deloitte, Ernst&Y, PWC1990 - 2005Niche: outsourcing, e-business, BPRExperienced hiresEDS: CSC: BPO2005+Business improvement: Change management; solutions not theoryBroad experience; done it beforeConsultancies: Independents: Flexible workers (semi retired); Collaborative groups

    Pigs with lipstick

  • Pigs with lipstick

  • Pigs with lipstick

  • Pigs with lipstick

  • Segmentation

    Industry

    Telcos- Health

    Digital Media- Manufacturing

    Finance & Banking - FMCG& Retail

    Utilities- Transportation

    Function

    Strategy- HRM

    Operations- IT (incl. e-business)

    Sector

    Non-profit

    Public

    Private

  • Why is it relevant to HR?

    If HR cannot provide the expertise needed, the organisation will sideline them and risk making poor decisions, or go outside for adviceThe use of external consultants is often not due to lack ability to generate ideas/solutions, but a lack of senior management confidence in its internal HRs implementation capability/record and ability to show a ROI or business benefitBetween Shared Services and external consultancy/interims rewarding work will be reduced for the HR Business partner team to non-strategic admin and fire-fighting
  • What is a Management Consultant?

    Not the brightest and the bestNot all Oxbridge MBAs or even business graduatesNot Magicians, Preachers or Witch-Doctors
  • Skill Profile

    Skills:

    Outstanding interpersonal skills Great Presenter Excellent at writing reports

    Knowledge:

    Generalist business knowledge Methods & Frameworks In-depth specific skill

    Depth of expertise: skill or knowledge based

    Broad set of general consulting competencies

  • First impressions do count

  • Why Employ Consultants?

    Expertise (a ready made solution, done it before)ObjectivitySomeone to blameTo save moneyExternal knowledge (e.g. best practice, benchmarking)Dont care about internal politics (much!)
  • Types of project

    Providing Advice: should I launch this product?Project Design: how should I launch this product?Implementation: install a system that will improve my productivity and/or costs/profitsFunctional Management: run our department for us
  • Working With Clients

    Defining the project

    Open Closed questions: Predicament > Definition > Solution

    Key Decision Makers

    Enticing the Client

    Free analysis

    Free juniors

    Corporate entertainment

    Successful Projects

    Contract clarity

    Clear goals, roles & procedures

    Boilerplating & re-use

    Quick measurable wins

    Solid Conclusions

    Consultants cultural fit

  • The Consulting Life-cycle

    Initial Contact

    Definition

    Proposal & Contract

    Data Collection

    Data Analysis

    Decision-making,

    Planning

    Intervention / implementation

    Disengaging

    Client / Project

    Review

  • MEASURING YOUR
    HR BUSINESS PARTNER VALUE ADD

  • HR Business Partner Metrics

    If you cant measure it, you cant manage it

    If you cant value you it why would I buy it?

    The Measures:

    Input Measure

    Output Measure

    Outcome Measure

  • HR Business Partner Metrics

    Input Measures: The investment in people for productive use.

    Typical input measure:

    Training

    Remuneration

    Recruitment

    (needed to measure what the return from the investment is)

  • HR Business Partner Metrics

    Output Measures: This can be considered in two ways

    Actual services & goods produced

    (Eg. No. of customers served per employee, project delivery, SLAs, customer retention/satisfaction)

    Key financial performance areas

    (Eg. Profit per employee / Revenue per employee)

  • HR Business Partner Metrics

    Outcome Measures: These consider how people respond.

    This describes a response of human resources to a set of conditions.

    Examples:

    Resignation rate

    Employee Engagement

    Sickness absence

    Internal career movement

  • HR Business Partner Metrics

    Checklist of Measures:

    Average Revenue per employeeAverage cost per employeeAverage Profit per employeeReturn on Human Investment ratio

    Formula: (revenue - (costs - total remuneration)) The ratio indicates for every invested in paying people, the return in profit generated

    Remuneration / RevenueTraining costs as ratio of productivity improvement
  • HR Business Partner Metrics

    Checklist of Measures: (Continued)

    Remuneration / Costs ratioAverage Remuneration per employeeAbsence rate (Outcome Measure)Resignation rate (Outcome Measure)Training spend / Compensation ratio
  • HR Business Partner Metrics

    DATA AVAILABILITY

    Available Data:

    Absence, Resignations, EOS,

    Data to be available:

    Costs, Remuneration, Revenue, Profit & Training investment

    Requires closer working with Finance

    Combined reporting not separate HR and Finance

  • HR Business Partner Metrics

    NEXT STEP

    Define:

    Cost, Remuneration, Revenue & Profit.

    Identify:

    Sources of information/data. What data is relevant/of interest to your customers
  • HR Business Partner Metrics

    Conclusion:

    The suggested metrics should help make changes not simply a compliance tickMetrics not to be looked in isolation but from a business perspective, eg, no use being on budget if company is making a loss. These metrics should provide insights as to how these factors impact and influence the business and by modifying them can aid the business.
  • Dont Re-invent the wheel!

  • Tools for Collaboration

    Social NetworksFacebook, MySpaceFlickrYouTubeLinkedinBlogsWikisPodcasts

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  • Thank You