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How to be a Strategic Business Partner
for HR, OD and Training Department
Case Studies of a HR Driven Business Growth Model
Contents
• Strategic Business Partner Roles and Dilemma
• HR Driven Business Growth Models
– Strategies, Execution, Culture, Structure
– Talent, Leadership, Innovation, Merger and Innovation
• Case Studies of OD and Training
• Your Action Plan
• Today HR roles have transformed from administration to strategic roles
• More and more business require
HR look into talent development, cultural business, and even innovation culture.
• How do we face this new challenges? What can we do?
HR Roles
HR Roles can be divided into two major roles:
HR Operations C&B, Recruitment, IR and ER
HR Development
Learning and Training, Organization Development and Career Development
OD Space
Business Process Improvement Corporate Strategies
Facilitation
Talent Management Succession Planning
Cultural Building Collaboration Building Change Management Leadership Development and Pipelines
Organization design and structure
Employee Engagement
Challenging Questions
• How do we use all division of HR to help business to drive sustainability and growth?
• How can we be a strategic business partner to CEO and Business Leaders?
• How can we partner with business leaders to drive business (P&L) and employee engagement (Turnover)?
Questions
• I was asking this questions 10 years ago when I was working with FMGC, Semiconductor and Manufacturing?
• Carsem – Local – Initiate change – COO & Business Leaders
• How can we use Training, OD and HR in general to assist the business leaders who have to fire fight everyday? They have to answer to the board of their number of P&L.
• How can we relate to them?
Four Organization Needs
Organization Primary
Needs
Profit Productivity
EngagementCulture
Talent and Leadership Dev
Business
People
OD Driven
13
OD Driven Business Sustainable Growth Model
Process Dévelopment
Organisation Development
Talent Development
Productivity Profit
Engagement Talent
Strategy Management
Team Development
Effective Org Structure
Engagement Culture
OD Interventions Talent Management
Leadership
Development
Bench Strength
Training & Dev
Productivity
Innovation
Simplification
• I found one model in which I use for many years as the reference framework to drive business growth
• Green Projects by Harvard Business School – Profession Nitrin. In his stidies of 10 years of the successful US companies, he discover something…..
The Evergreen Project
• A careful examination of more than 200 well-established management practices within 160 companies over a 10-year period (1986-1996).
• The authors point out that companies which consistently follow this formula of 4 + 2 have a 90% chance of sustaining superior business performance.
Major 4 Factors
1. Strategy: devise and maintain a clearly stated, focused strategy.
2. Execution: develop and maintain flawless
operational execution. 3. Culture: develop and maintain a performance-
oriented culture. 4. Structure: build and maintain a fast, flexible, flat
organization.
Secondary 4 Factors
Master two of the four secondary management practices:
(5) Talent: hold on to talented employees and find more.
(6) Innovation: make industry-transforming innovations.
(7) Leadership: find leaders who are committed to the business and its people.
(8) Mergers and acquisitions: seek growth through mergers and partnerships
Results
Strategy Execution Culture Structure
Talent
Leadership
Innovation
M&A
Total Return to Shareholders 943% (Winners) vs 62% (losers) Sales 413% (Winners) vs 83% (losers) Operating Income 326% (Winners) vs 22% (losers) Return on Invested Capital (%) +5.45% (Winners) vs -8.52% (losers)
Engagement
Talent
Productivity
Profit
Background The Evergreen Project
A careful examination of more than 200 well-established management practices within 160 companies over a 10-year period (1986-1996).
Prof Nirtin Nohria from Harvard Business School has pointed out that companies which consistently follow this formula of 4 + 2 have a 90% chance of sustaining superior business performance.
Engagement
Talent
Productivity
Profit
Diagnosis
Strengths Next Level Development
HR/OD/Training Solutions
Results
Strategies
Execution
Innovation
Organization Structure
Culture
Leadership
Talent
M&A
Business Growth Analysis KRA KPI Tools Results
Strategies
Strategy Management Business Goals 110% Review Quarterly
Structure Tree Communication Review
Alignment Business Goals
Execution
Critical Process Department Process
20% process improvement
Lean Enterprise Performance Con Process Mapping
Productivity
Innovation
Continuous Improvement
2X Innovative Seminar 10% new ideas
Innovation Tools Productivity
Org Structure
Effective Structure Buy off by Stakeholder
5 level Model Productivity
Culture
Engagement 75% as base 3% improve yealy
WIFI Model Coaching, HR
Engagement
Leadership
Leadership Pipeline Senior Leadership
Bench Strength 60%
Strategic Leadership Talent Management
High Performance Leadership
Talent High Performance Competencies
HiPO Talent Management
Talent Continuity
Results
• Carsem
Build the next generation of managers
Improve productivity through lean manufacturing – 20% output and cost saving
Develop critical competencies for Marketing, R%D, Manufacturing to compete
Turn around during VSS and losses
Improve engagement survey ratings
Strategy
Whatever your strategy, whether it is low prices or innovative products, it will work if it is sharply defined, clearly communicated, and well understood by employees, customers, partners, and investors. • Build a strategy around a clear value proposition for the customer.
• Develop strategy from the outside in, based on what your customers, partners,
and investors have to say—and how they behave—not on gut feel or instinct.
• Continually fine-tune your strategy based on changes in the marketplace—for example, a new technology, a social trend, a government regulation, or a competitor's breakaway product.
• Clearly communicate your strategy within the organization and to customers and other external stakeholders.
• Keep focused. Grow your core business, and beware the unfamiliar.
Culture
Corporate culture advocates sometimes argue that if you can make the work fun, all else will follow. Our results suggest that holding high expectations about performance matters a lot more. • Inspire all managers and employees to do their best.
• Empower employees and managers to make independent decisions and to find
ways to improve operations—including their own.
• Reward achievement with pay based on performance, but keep raising the performance bar.
• Pay psychological rewards in addition to financial ones.
• Create a challenging, satisfying work environment.
• Establish and abide by clear company values.
Encouragement Index Kozes and Posner
___ I make certain we set a standard that motivates us to do better in the future than
we are doing now.
___ I express high expectations about what people are capable of accomplishing.
___ I pay more attention to the positive things people do than to the negative.
___ I personally acknowledge people for their contributions.
___ I tell stories about the special achievements of the members of the team.
___ I make sure that our group celebrates accomplishments together.
___ I get personally involved when we recognize the achievements of others.
___ I clearly communicate my personal values and professional standards to
everyone on the team.
___ I let people know I have confidence in their abilities
___ I personally congratulate people for a job well done.
27
Execution
Develop and maintain flawless operational execution. You might not always delight your customers, but make sure never to disappoint them. • Deliver products and services that consistently meet customers'
expectations.
• Put decision-making authority close to the front lines so employees can react quickly to changing market conditions.
• Constantly strive to eliminate all forms of excess and waste; improve productivity at a rate that is roughly twice the industry average.
Structure
Managers spend hours agonizing over how to structure their organizations (by product, geography, customer, and so on). Winners show that what really counts is whether structure reduces bureaucracy and simplifies work. • Simplify. Make your organization easy to work in and work with.
• Promote cooperation and the exchange of information across
the whole company.
• Put your best people closest to the action.
• Establish systems for the seamless sharing of knowledge.
Innovation
An agile company turns out innovative products and services and anticipates disruptive events in an industry rather than reacting when it may already be too late. • Relentlessly pursue disruptive technologies to develop
innovative new products and services. • Don't hesitate to cannibalize existing products.
• Apply new technologies to enhance all operating
processes, not just those dedicated to designing new products and services.
Talent
Winners hold on to talented employees and develop more.
Fill mid- and high-level jobs with outstanding internal talent
whenever possible.
Create and maintain top-of-the-line training and development
programs.
Design jobs that will intrigue and challenge your best performers.
Keep senior management actively involved in the selection and
development of people.
Leadership
Choosing great chief executives can raise performance
significantly.
Closely link the leadership team's pay to its performance.
Encourage management to strengthen its connections
with people at all levels of the company.
Inspire management to hone its capacity to spot
opportunities and problems early.
Appoint a board of directors whose members have a
substantial stake in the company's success.
OD/HR
• Facilitate and manage corporate strategies
• Improve business processes
• Recommend organization structure
• Manage employee engagement survey and improvement
• Manage talent of high potential and managers
• Recruit, develop and engage leadership team
• Create innovation culture
• Manage culture after merger
Case Studies
• A. Facilitate, Communicate and Monitor Corporate Strategies
• B. Combine Key Business Process improvement with Talent and Leadership Development
38
Strategy Planning Facilitation
Goals
Develop Stretch Goals and Strategies
Communicate to employees for engagement
Quarterly review
Activities
Facilitate Review and Stretch Goals with Senior Leadership Team
Facilitate Strategy Planning Session
HR Communicate to Employees
Facilitate Alignment of Department Goals
Facilitate SLT reviews of HOD Strategies
Quarterly Review
PURPOSE
Enhance
Value To Our
Stakeholders
MISSION
To Support
The Vision
CRITICAL
SUCCESS
FACTORS
Big Few
Things
DEFINE
STRETCH
GOALS
Key Metrics
Process
SET
STRATEGIES
Strategies to
meet Critical
Success Factor
/Goals
One Day
STRATEGIES
REVIEW /
PRIORITIZATION
Senior Manager’s
to review/buy off
2nd meeting
outcome
½ Day
DEFINE
DEPT ACTIVITIES
&
TACTICS
Departmental Level -
Key Actions
To Be
Executed
FINAL
REVIEW
Dept
Structure Tree
Review
1-2 Days
VISION
To Support
Our Purpose
Pre Strategy Meeting ~ Set Direction
Strategy
Comm forum
Full Structure
Tree
Purpose Vision Mission
Critical
Success
Factor
Stretch Goals Champions
Enhance
Stakeholder
Value
2
Build Strong
Reputation
2.1
Top Quartile of top Ten Customer (Balance
Scorecard)
2.2
50% reduction in DTD CT on 40% of product
sales by Q4 FY11 & 75% of product sales by
Q2 FY12
2.3
Meet 15% target for new product revenue
by June 2011 ( Carsem Group)
2.1
Rick Flowers
2.2
Iain Meikle
2.3
LW Yong
Theme Speed of Execution Main Thing
Carsem will
strive to ensure
by
with
delivering
operational,
service and
technology
excellence.
3
Employee
Engagement
3.1
Effective Communication
3.2
Employee Satisfaction Survey Index of 80%
3.1
Omar Hakim
3.2
Omar Hakim
1
Improve
profitability
1.1
Achieve sustainable PBT of 12% by Q2
FY2010/11
1.1
Eric & GMs
To be a
World Class
Company
Offering
Assembly &
Test
to
semiconductor
Companies
Throughout
the World
Profitable
Growth
Impressing
Customers
Committed
& Engaged
Employees
Goal Alignment
Structure Tree for Year 2010/2011
(1)
Improve
Profitability
(2)
Build Strong
Reputation
Critical
Success
Factors Champion
Achieve
sustainable PBT of
12% by Q2
FY2010/11
1) Top Quartile of
top Ten Customer
(Balance
Scorecard)
2) Business
Process Speed
Improvement
consistent with 7
days door to door
cycle time .
3) Meet 15%
target for new
product revenue
by June 2011
( Carsem Group)
(3)
Employee
Engagement
1) Effective
Communication
2) Employee
Satisfaction
Survey Index of
80%
Eric &
GMs
1) Rick
2) Iain
3) LW
Stretch
Goals
Omar
Champion Strategies Tactics & Targets
sample
Outcome from 18th May
Strategy Meeting
47
Talent and Productivity Dev
Goals
Reduce eight wastes, Reduce Operating Expense, Reduce Excess Inventory Increase output
Develop Leaders through talent selection, review, development and review
Sustain leadership and lean culture through Lean Council, Senior Leadership Team and Reward System
Activities
Consultant led Approach – 30% productivity improvement Diagnosis organization in lean context Conduct projects with employees Train employees on the jobs Report results
48
Lean Productivity for Suppliers
Activities
Change Management Diagnosis organization in lean context Conduct projects with employees Train employees on the jobs Report results Talent Management Talent selection and review Talent Development through lean and leadership training Talent Evaluation Change Management Promotion and reward system Manufacturing lean structure Lean Council and Senior Leadership Team
McKinsey 7S Framework to implement Lean Manufacturing
2:00 – 5:00 min Video
Strategy A set of actions that you start with & must maintain
Structure How people & tasks / work are organized
Systems All the processes and information flows that link the
organization together
Style How people behave
Staff How you develop people
Superordinate
Goals
Longer-term vision & goals that shapes the destiny of the
organization
Skills Dominant attributes or capabilities that exist in the
organization
Action Learning Design
Stage One: Education and Projects
Stage Three:
Integration, Sharing and Proliferation
Project introduction
& selection
Work planning
tools & techniques
Team building
Project specific /
Just In Time (JIT)
education
Innovation
Mid-point
progress
review
Assimilate &
synthesize work
Create, test &
improve presentations
• What’s learnt?
• Findings &
recommendations
• Implementation
plan
Presentations to
sponsors
Debriefing &
planning next steps
3 - 6 Month Timeline
½ - 1 Day
Teams do projects
Stage Two: Review
HRD Department Structure
LAURENCE
Training Administration
( Ros ) 5 persons
~ Support training
arrangements & Financing
Human Capital ( Malar)
3 persons ~ Leadership
Dev & Soft Skills
Frontline Employees ( Salbiah/Din)
60 persons ~ Instructors support
new procedures
Lean ( KS Chew ) 3 persons
~ Coordination, Facilitating
Technical Skills Development ( Ramond ) 3 persons
~ Support Quality Training, Event Management &
Publicity
OD ( KW Cheah )
3 persons ~ Planning & Coordination
Lean Consultants
• The AMC founders & principal consultants are:
– Ramesh Victor Rajathavavaram
Lean Master (USA)
– Soundarajan Pitchay
Lean Master (USA)
Wave 1
•Lean overview
•Value Stream Mapping
•Set-up Reduction
•5S
•Change Management
Wave 2
• Visual Management
• Standardized Work
• Error Proofing
• Handling Resistance
LEAN IMPLEMENTATION IN CARSEM
• Factory will be more Visual & Organize
• Reduced set-up time
• Factory will have less error
• Work will be more standardize/repeatable
Wave 3
• Material Control (Kanban)
• Total Production Mgt (TPM)
• Overall Engineering Efficiency (OEE)
• Performance Measurement
• Introduce pull mechanism through Kanban
• Working with lower level of inventory
• Improve equipment OEE
Wave 4
• Theory of constraints
• Lay-out optimization
• IT Tools
• Lean Diagnostics
• Further strengthen the whole Value
Stream Map after the 3 waves project.
• Lean Masters have advanced diagnostic
ability for continuous improvement on
their own VSM (Value Stream Mapping)
• Lean lay-out
Leadership Training
• VP of Manufacturing and I join together to train and facilitate leadership training
• 5 Modules to 200 section heads and managers
• Basic Leadership, Best Practice, Motivation, Alignment and Building Competencies
Secretariat
IC Power QA Material
Various LEAN Project Teams
CS IC/AP/MLP/MF
Steering Comm. Level
Council Level
Working Comm. Level
Teams
2nd
3rd
4th
1st
Department Working Committees (Include Value Stream Champion meeting)
Structure To Support Lean
M-site council Leader: TL SOO
S-site Council Leader: CS Lim
Steering Comm. Leader: SW WOO
Test council Leader: WT CHIM
Once a month
STEERING COMMITTEE
Senior Managers including those from Support Group (IT, Finance, Material, PC, HRD)
Proliferation Methodology
Sharing of projects by LM to all Area (Attendees - Product Manager, Identified Project Doer)
Council to review & ensure proliferation is done at their own area.
Complete every wave at Pilot line
Select Projects that is recommended to be proliferated by Council & Consultant
Training - JIT Tool for Proliferation (Conducted by LM / HRD)
Proliferation of recommended projects and identify new opportunities at own Area
Wk 1
Wk 1
Wk 1
Wk 2-6
Wk 6
Time line
Product Manager to identify suitable members for proliferation and exploration of new opportunities
Training Department
• Change the TNA Questions to Performance and Business Goals needs !
• Work with Business leaders to close the gap
• Develop competency models
• Learn faster than our competitors – Strengthen Critical Competencies
• Use effective training delivery – facilitation and action and whole brain based
• Apply learning models – action learning and 6D model (can see results)
Training Needs Analysis
• Change the way you conduct TNA
Strategic Learning focused on Business Performance Goals
Business Challenges
Strategic learning and OD
Level Business Needs HR, OD and Training Out comes
Corporate Strategic Needs
Business Challenges Competitive Edge Engagement Culture Leadership Pipeline Strategic Management
Action Learning Development Model Action Learning & Coaching Leadership Dev Strategic Thinking and Planning
Business Goals World Class Expertise Motivated workplace Employee Retention & Leadership continuity Alignment and Productivity
Department Tactical Needs
Department Goals Critical Knowledge Team Member Retention High Performance Team
Action Learning TWI Leadership Hiring and Coaching Performance Management. Coaching and Facilitation
Department Goals Quality Consistency Productivity Committed Employees
Employees Competency Needs
Skillful People Innovation and Continues Improvement
Employee Competencies Innovation and Continuous Improvement Tools, Convention and Sharing sessions
Capable Employees Innovative workforce
Strategic learning and OD
Level Business Needs HR, OD and Training Solutions
Out comes
Corporate Strategic Needs
Department Tactical Needs
Employees Competency Needs
Strategic Learning
CEO Team
• What are your top three priorities of the year?
• What are the top three competencies you want to improve (lack) and strengthen (strong points) ?
• What are your top 2 current business challenges and future business challenges? What services you would like HR to provide to the company?
Strategic Learning
Department Head/Business Leaders
• What are your top three priorities of the year?
• What are the top three competencies you want to improve (lack) and strengthen (strong points) ?
• What are your top 2 current business challenges and future business challenges? What services you would like HR to provide to the department?
Strategic Learning
Employee Competencies and Performance Goals
• What are your top three KPI or performance goals of the year?
• What are the top three competencies you need to improve (lack) and strengthen (strong points) to achieve the goals of the year?
• What are your top 3 current and future work challenges? What services you would like HR to provide to you?
Current Business Challenge
Item Current Business Challenge 1
Current Business Challenge 2
Current Business Challenge 3
Challenges
Competencies
Talent
Corporate Actions
HR Solutions
Future Business Challenge
Item Future Business Challenge 1
Future Business Challenge 2
Future Business Challenge 3
Challenges
Competencies
Talent
Corporate Actions
HR Solutions
What is Action Learning?
• Drive strategic
change
• Transform the
organization
• Accelerate
development
• Achieve business
breakthroughs
• Develop
leadership
capabilities, etc. Develop participants
Address significant
business challenges
Results
Learning
Action
HR Solutions
Concerns Project Training and Coaching
Implementation with timelines
Results
Incompetent leadership capability to lead teams in Finance Department
Leadership competency building
4 stages of leadership training 6 coaching sessions
Application of leadership tools Jan-August
Employee survey on leadership capabilities from 3 to 7
Low Customer satisfaction rating in Sales and Marketing
Improve customer engagement
8 phases of training with 8 assignments
Jan - September Improve of customer satisfaction rating from 4 to 8
Training Delivery
• Broadening the Learning Channels
Benchmarking – Visit other industries
Whole Brain Learning – Action based, VAKD (vision, auditory, kinesthetic and digital)
Interesting, adult learning and Fast paced
E-Learning and Gaminization, Virtual Reality
Take Home
• Business Growth Model
• Performance, Goals and Business Challenges Analysis
• Expand the roles of OD and Training
– Training – transfer and development of skills
– OD – change of organization.
Diagnosis
Strengths Next Level Development
HR/OD/Training Solutions
Results
Strategies
Execution
Innovation
Organization Structure
Culture
Leadership
Talent
M&A
Strategic learning and OD
Level Business Needs HR, OD and Training Solutions
Out comes
Corporate Strategic Needs
Department Tactical Needs
Employees Competency Needs
Current Business Challenge
Item Current Business Challenge 1
Current Business Challenge 2
Current Business Challenge 3
Challenges
Competencies
Talent
Corporate Actions
HR Solutions
Portfolio
• Laurence Yap Organization Development Talent Management Training and Development
18 Years of Training & OD Experience with 7 Years of Senior Manager (Pfizer, Komag, Carsem, PayPal, First Solar) Local and Fortune 500 MNC
Contact
Online Portfolio http://www.laurenceyap.com
Mobile +60162080096
Email [email protected]
Linkedin https://www.linkedin.com/in/laurenceyap
Blog http://journeyofhrd.blogspot.com