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November 24, 2014 | Slide 1November 24, 2014 | Slide 1
EXCELLENCE – LEADERSHIP – ART
Dirk Stoltenberg, Global HRM
This document provides an outline of a presentation.
It is incomplete without the accompanying commentary
STRATEGIC AGILITY @ HR
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Companies scoring high in
agility related routines
have higher
levels of
Return
On
Assets
Source: Center of Effective Organizations, University of Southern California
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© ABB Group
November 24,
2014 | Slide 6
Don‘t sing the same song, instead invite
people to think
Questions open
doors, answers
close them
Arm people with
most competitive
weapon of our times: Knowledge
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BUSINESS MODEL INDICATORS
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BUSINESS MODEL INDICATORS
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Changing nature of work
Changing needs of internal clients
Changing nature of the consumer
Changing nature of B2B customers
Changing impact of information
HR, SO WHAT?
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ALMOST 20YRS OF HR SHARED SERVICES...
...acknowledge for:
• More efficiency, reduced cost– Sure!
• Improved Customer Service – Maybe.
• Fewer administrative burden– For whom?
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Well defined and standardized processes enhance operational efficiencies and cost-savings.
Processes
1%
32%
0%
20%
40%
Non-standardizedprocesses
Standardizedprocesses across
all locations
Impact of Process Standardization on Cost-Savings
Net
Co
st-S
avin
gs
Source: Shared Services Roundtable
People
High turnover and dis-engagement of staff reduce productivity, negatively impact customer service, and increase hiring costs.
Annual Turnover Rates
Med
ian
Tu
rno
ver
Rat
e 15.2%
9.9%
0%
10%
20%
Shared ServicesEmployees
All CorporateEmployees
Source: CLC Human Resources
35%
18%
14% 13%
0%
20%
40%
Non-integrated technology and data sets reduce HR shared services quality & efficiency.
Technology
Top HR Service Delivery Issues
Per
cen
tage
of
Org
aniz
atio
ns
Streamlining Processes& Systems
Upgrading HR Systems
Data Accuracy
Integrating
Systems
Source: Towers Watson
November 24, 2014 | Slide 14November 24, 2014 | Slide 14
A) HR Operations
• 25 HR Centers
• CoE included
• 900 Staff
• REV/COST RATIO 0,46
• VARIATION APPRECIATED
• CALIBRATION
• BUSINESS REVIEW SCORE
• PERFORMANCE
• NET PROMOTER SCORE
• COST/REVENUE RATIO
November 24, 2014 | Slide 15November 24, 2014 | Slide 15
A) HR Operations
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B)
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C)
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C)
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D)
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STRATEGIZE DYNAMICALLY
PERCEIVE CHANGE
TEST & EXPERIMENT
IMPLEMENT THE CHANGE
BE AGILE:
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Distinct but complementary capabilities
Strategize dynamically
Shared purpose Purpose other than profit & growth and business model areknown. Values embedded drivebehavior on a daily basis
Change-friendlyidentity
Sense of „who we are“ and„What inspires us“. Strategyencourages the organization tochange
Robust strategicintend
Current strategy is relevant in and concruent to the actualmarket conditions. Held flexible enough to change on shortnotice
ROUTINES OF AGILITY (1)
Perceive change
Sensing People are keen to explore thefuture deeply. Many peoplemaintain continuous contact withparts of the businessenvironment
Communicating Unfiltered information from theenvironment goes rapidly todecision makers. Communication goes seamless between top down & bottom up.
Interpreting Information gets evaluatedagainst firm‘s identity, intent, business model, and risktolerance
Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company
November 24, 2014 | Slide 22November 24, 2014 | Slide 22
Distinct but complementary capabilities
Test & experiment
Slack in resources Capable resources (people, money, time, tools) areavailable and can be readilydeployed to experiment withnew ideas
Risk Management Experiments are bounded byagree-upon criteria for judgingsuccess and failure. The possibility of failure is accepted, as a vehicle for learning
Learning Experience with runningexperiments is captured andapplied with each „new round“, so that the company‘scapabilities are continuouslyimproved
ROUTINES OF AGILITY (2)
Implement the change
Management andorganizationalautonomy
Executives delegate sufficientauthority to line and businessmanagers o that the companycan execute changes withsuccess. There‘s no secondguessing from headquarters but alignment with basic strategicobjectives
Embeddedchange capability
The pragmatic ability to changecollective habits, practices, andperspectives is embedded in lineoperations, not isolated in staffgroups
Performancemanagement
Clear, unambiguous, acceptedperformance measures andtargets are based on businessmodel drivers with rewards thatmatters
Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company
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Watch the Samsung case@ https://www.youtube.com/watch?v=yFzYqEiV5lI
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Agile organizations need agile people....so, answer yourself this questions:
How agile are you?
Are you changing before you have to?
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© ABB Group
November 24,
2014 | Slide
27
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