the new era in hr creating and leading an effective and valued hr function
TRANSCRIPT
© Hitachi Europe Ltd. 2014. All rights reserved.
New Era in HR: Creating and leading an effective and valued HR functionStephen Pierce
Chief HR Officer, Hitachi Europe
Founded in 1910 as a machine repair shop at Kuhara Mining Company in Hitachi City, Japan
Hitachi founding spirit (Values): Harmony, Sincerity, Pioneering Spirit
Corporate credo: Contribute to society through the developmentof superior, original technology and products
Founder Namihei Odaira Original repair shop (1910)
Hitachi
Information & Telecommunication Systems Power Systems
Railway Systems Construction Machinery
ServiceIT Service, Data Centre Solutions, Consulting
System SolutionsLarge-scale systems, Highly reliable systemsFinger Vein Authentication
Healthcare
Hardware, Software
Rolling stock + maintenanceElectrical componentsSignaling / Train control systems
Nuclear Power Business
T&D - Transmission & Distribution
Platforms
Hitachi in Europe
Hydraulic ExcavatorsWheel LoadersMining Equipment
Global Talent Challenge
4
〔 FY2012 Results〕 〔 FY2015〕
TotalOverseas
Japan
FY2015 Target : Overseas revenue ratio 41% over 50%⇒
[20]
[12]
[8]
[10]
[50]
[16]
[9]
[7]
[9]
[59]
North America
North America
Europe
China
Japan
Overseas Revenue
RatioOver 50%
Europe
Asia and others
Japan
Overseas Revenue
Ratio41%
Emerging countries
Emerging countries
Asia and others
China
Overseas Revenue Ratio 【 Revenues by Region 】
[ ]: % ratio
Headcount
326k118k [36%]
208k
350k
150k [43%]
200k
1) What the world thinks of HR
2) Key focus areas for success
3) The HR team
4) You as the leader
5) Summary of what matters
6) Questions, comments and discussion
Agenda
© Hitachi, Ltd. 2016. All rights reserved.
The Conference Board: 2016 CEO Challenge Report
Hitachi - Activity analysis survey:181 companies, 4318 respondents (HR/GA)
8
Global Overall Result
Function summary
9
About 50%26.1%
13.0%
9.2%
8.4%
7.9%
6.4%
6.2%
5.9%
5.9%
2.7%
2.3%
2.3%
1.4%
1.1%
0.8%
0.3%
Time per Function (hours)
Main Findings: Most time is spent on
General Affairs, Recruiting and Staffing, and Employee/Labor Relations activities
Time dedicated to Talent Management, Organizational Development, and HR Strategy and Planning shows minimal effort in these critical areas
General Affairs
Recruiting and Staffing
Employee/Labor Relations
Training
Payroll and Time & Attendance
Benefits
HR Department Management
Safety
Compensation
Talent Management
Non - HR Activities
HR Information Systems
Organizational Development
HR Communication
HR Strategy and Planning
Other
Gap Between Importance and of Satisfaction
HR/GA fundamental activities
Organizational effectiveness
Talent development and management
Business growth
Cost efficiency
Governance and risk management
A gap between importance and satisfaction indicates a point of disconnect between business expectations and delivered results
HR assessment survey5837 respondents (Business Line: 4397HR/GA:1440)
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CEO Questions for Global HR
How do we accelerate a culture embracing
Globalisation and excited by change?
How do we find/ attract ‘top talent’ into our
company?
Who is our top talent? How do we
develop/retain them?
How can we grow our people to meet
tomorrow’s challenges?
How do we maximise the
contribution from our staff?
How does theperformance of my
Management team and staff
compare to others?
.
1. Focus on the Business: What action must we take so our organisation’s people capability can deliver its business goals?
But do we know the business’s customers, markets, strategy, P&L....and speak their language?
Megatrends: The trends shaping work & working lives
Key changes that have shaped work in recent times, include:• De-industrialisation• Demographic change• Educational attainment• Decline of collectivism• Dramatic shifts in organisation size
Workplace Trends
• Flexibility abounds • More people are working for themselves • Not sticking with one job for a lifetime • Work-life balance is a priority • Personal branding is all the rage
© Hitachi, Ltd. 2014. All rights reserved.
3. Focus on Change
21
Change our Approach= Growth
Accept the status quo= DeclineBusiness Change Curve
Strategic Inflection Point
From ‘Only the Paranoid Survive’ - Andy Grove
The Inflection Point
© Hitachi, Ltd. 2014. All rights reserved. 22
“If you keep doing what you are doing, you’ll keep getting what you are getting”
4. Focus on Organisation Culture
FOCU
S
ENGAGEMENT
CONNECTION
ATTRACTION
FOCUS/ALIGNMENT
ENGAGEMENT
CONNECTION
ATTRACTION
“Ignoring the health of your culture is like letting aquarium water get dirty”
Global Hitachi Values
FOCU
S
ENGAGEMENT
CONNECTION
ATTRACTION
FOCUS/ALIGNMENT
ENGAGEMENT
CONNECTION
ATTRACTION
Harmony
SincerityPioneering
Spirit
Values for New Rail Company
FOCU
S
ENGAGEMENT
CONNECTION
ATTRACTION
FOCUS/ALIGNMENT
ENGAGEMENT
CONNECTION
ATTRACTION
Harmony:RespectTrust
Sincerity:IntegrityOpen Comms
Pioneering Spirit:InnovationIngenuity
Hello,my name isCULTURE
Strategy
© Hitachi, Ltd. 2014. All rights reserved.
5. Focus on Delivery
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6. Focus onengagement & developing relationships
to build trust & influence
7. Focus on Financial Benefits
© Hitachi, Ltd. 2016. All rights reserved.
22%
10%
Results by: Hitachi Respondents
Transactions70%
Planning20%
Strategy10% Strategy
15%
Planning55%
Transactions30%
FY12
HR Transformation
Hitachi HR Focus Transformation
FY18
DecreasedCost
Increased Value
Efficiency
Effectiveness
© Hitachi, Ltd. 2016. All rights reserved.
Hitachi’s HR Roadmap
Global Basic HR-Global HC visibility-Global Compensation Structure (HGG)-Global Performance Management-Global hire process/Taleo-Employee Survey-HR Shared Services-Introduced Talent Management (O/TR)- Global Leadership Development programs
Future is Here-Integrated GPM on Workday-Integrated GLD/OTR on Workday-Integrated Learning and Development (CSOD)-Skills and Competency Management-Search Global Talent by skills and competenciesExpand Accountability cultureTransform HR RoleTransform Business Leader Role
Best in Class HR Capabilities -Introduce LMS (CSoD)-Introduce Global HRIS (Workday)-HCDB on Workday-Continue Global Survey (Hitachi Insights) annually-Comp & benefit governance and cost control on a global scale-Compensation Career Ladders and HGG utilization-Strategic Analysis: Cross Reference – Financial, Survey, Business Performance data.-Introduce EWLC & Expand HRSS in 5 RHQBusiness Value
HR Focus on
Growth
HR Administration
2015 and beyond
2013-2015
2017-2018
2015-2018
32
© Hitachi, Ltd. 2016. All rights reserved.
Interview and Select(Taleo)
Onboarding(Taleo)
Performance Management
(Workday)
Talent Reviews(Workday)
Succession Planning, GLD,
360°(Workday, DDI)
Learning & Development
(LMS)
Hitachi Competencies
WORKDAY CSOD
Hitachi – Technology Solutions
Employee Benefits
>$5 million Cost reduction per year
Employee Survey152,000
employees participated with a 78% response
rate
DatabaseData for 250,000 employees registeredIn Hitachi database
Workday ‘go-live’In February 2016
Job Grading 50,000 positions graded for managers and above
Careers Site 3,000 jobs advertisedAround 2,500 hires and a talent pool of 90,000
Performance Management100,000 employees participated
Hitachi HR - Progress….
© Hitachi, Ltd. 2014. All rights reserved.
Hire for attitude – never compromise
Don’t underestimate the importance of emotional intelligence
‘Hire only people who are better than you’
Attitude x EQ x Capability = Achievement
What about your team?
35
© Hitachi, Ltd. 2014. All rights reserved.
And Finally….Look in the Mirror
36
Why should anyone be led by you?
What do you need to change to maximise your value to your organisation?
Building an effective & valued HR function
1. Know the business & speak the language2. Know what’s going on outside 3. Be a change agent4. Develop the culture5. Deliver results6. Build great relationships with key stakeholders7. ‘Show me the money’8. Hire those who can do 1 to 79. Develop your team so they can do 1 to 710. Look in the mirror
‘Great vision without great people is irrelevant’
Jim Collins - Good to Great
LIVE, LOVE, LAUGH, LEAVE A LEGACY
STEPHEN R. COVEY
