Why strategic HR is crucial and how to get started

Why Strategic HR is Crucial Now, and How to Get Started

bamboohr.com efilecabinet.com

Rusty LindquistVP of HCM Strategy & IP

BambooHR

@[email protected]

linkedin.com/in/rustylindquist

Angela WatsonEnterprise Account Executive

eFileCabinet

[email protected]/in/angela-watson-5354903a



It’s time to blow up HR and build something new

Rethinking HR

Why we love to hate HR

What will it take to fix HR

It’s time to split HR

HR faces a crisis of credibility in the boardroom

HR is our “favorite corporate punching bag”

HR is Under Attack



"HR today sits smack-dab in the middle of the most compelling competitive battleground in business, where companies deploy and fight over that most valuable of resources—workforce talent."

-Matthew D. BreitfelderHBR: “Why did we ever go into HR”



Understand HR’s True Worthas a strategic investment

1


Historical Precedence

Understand HR’s True Worth


BusinessValue

H

L

Strategic

Operational

Micro Small Mid Large

HR viewed as a cost centerTransactional HR High-Impact HR

HR as a strategic investment

Evolution of HR



BusinessValue

H

L

Strategic

Operational


Evolution of HR

HR viewed as a cost centerTransactional HR High-Impact HR

HR as a strategic investment



A Changed Perspective



Millennials will comprise 75% of the global workforce by 2025. - Deloitte

Millennials

91% of Millennials expect to stay with your company fewer than three years. – Future Workplace

v75%

v91%

Average tenure for Millennials is 2 years (5 years for Gen X and Gen Y)– Payscale

v2yrs



43%

1yr

90-200%

Within the next 10 years, 43% of the US workforce will be eligible for retirement- Forbes

Baby Boomers

Among the jobs that 39-44 year olds began, one third ended in less than a year– Forbes

Cost of replacing an employee is between 90-200% of their annual salary.– SHRM



83%

23m

52%

83% Of executives say they’re increasing contingent workers.- Oxford Economics

Contingent Workers

There’s projected to be 23 million contingent workers by 2017 (up 26% in 2 years)– MBO Partners

52% of Millennials expect to work independently (82% in emerging markets).– Deloitte



• Workforce competency and skills gap

• Increased competition

• Globalization

• Culture

• Competition for talent

• Stresses on work-life balance

• Etc.

Additional Dynamics



–Bersin by Deloitte



–Ram Charan Best-selling Author, World-renowned Business Advisor



Organizational PowerOrganizational power goes to the group that deals with the biggest problems

Alfred Marshalleconomist



HR spends less than 15% of its time as a strategic business partner, and spends most of its time dealing with the implementation and administration of HR policies and practices.

But when HR is involved, organizations function better, and are much more successful.

–Forbes, Edward E. Lawler III “HR Should Own Organizational Effectiveness”



Nearly one half of respondents rated their HR department as

‘not ready’ to reskill itself to meet today’s business needs.

and

Only 8% of HR leaders have confidence in their HR teams

skills and abilities to meet business demands.





Largest Addressable Market Gaps:

“Strategic HR Skills Transformation”

“HCM Technology to Support HR Strategy”

– Gartner Research



Hierarchy Of Needs

Basic Operations

(HRIS, Records, Talent Acquisition, Compliance Tracking, Etc.)

Strategic Operations

(Culture, Performance, Engagement, Satisfaction, Employment Brand, Advising Talent Management, Succession Planning, Learning & Development…)

GeneralOperations

(Payroll)

Business Value




Eliminate the Unnecessaryshed all the dead weight

2

Eliminate the Unnecessary


We tend to be carried forward in life by the inertia of our past.

The Law of Inertia



Suck ThresholdVa

lue

/ Qua

lity

Activities / Features

Suck Threshold

Not doing enough Doing too much

Expected Result

Actual Result



Valu

e / Q

ualit

y

Activities / Features

Suck Threshold

What Matters Most

Not doing enough Doing too much

What To Say No To

Sweet Spot

Suck Threshold



We tend to use busyness as a proxy for progress




Organize the Informationallay a foundation for insight

3


Disorder is the enemy of Evolution

CognitiveOverhead

InsightLatency

ProductivityDrag

Organize the Informational


Challenges You Face

•Unmanaged Silos of Data

•Sharing & Storing Sensitive Documents

•Inefficient & Manual Document Access

•Managing Audits, Retention, Due Dates

•Meeting Compliance & Policy Requirements



Document Chaos

Store Search Share

Time/Resources

Risks/Liabilities

Inefficiency/Confusion• Track Changes• Share Access• Permissions

• Acct #• $$$• SSN#



$120 billion annually spent on printed forms

Of businesses fail if they suffer catastrophic loss

30-40% of timespent looking for files

Documents lost every 12 seconds

Each lost document costs $350 to $700

What Is The Impact?



“What we expect to see is document management will be just like

e-mail, where it’s going to be an essential capability that your

knowledge workers are going to require.”-Gartner Research

What Is The Impact?



Signal to Noise Ratio



Organize to Optimize

Should beCentralized

Should beAccessible

Should beReportable


Partnership



Automate the Operationalset yourself free to do great work

4


Leverage technologyAutomate the Operational

H

L

Strategic

Operational



59% of firms with less than 1,000 employees plan to invest in human

resources technology this year.

- TSCIU and HR Executive Magazine

Investing In HR Tech

v59%

Automate the Operational


The Diffusion of Innovation



Simplicity beats functionality

-Bersin by Deloitte




Increase Business Valueof your current HR activities

5


Increase Business Value



Measure & Reportit’s internal marketing

6



Solve Meaningful Problemsthink of HR like an internal business unit

7



Who are our key partners?

Who are our key suppliers?

Which key resources are we acquiring from partners?

Which key activities do partners perform?

What key activities do our value propositions require?

Our distribution channels?

Customer relationships?

Revenue Streams?

What value do we deliver to the customer?

Which one of our customer’s problems are we helping to solve?

What bundles of products and services are we offering to each Customer Segment?

Which customer needs are we satisfying?

What type of relationship does each of our Customer Segments expect us to establish /maintain with them?

Which ones have we established?

How are they integrated with the rest of our business model?

For whom are we creating value?

Who are our most important customers?

Through which Channels do our Customer Segments want to be reached?

How are we reaching them now?

How are our Channels integrated, and which ones work best, or are most cost-efficient?

How are we integrating them with customer routines?

What Key Resources do our Value Propositions require?

Our Distribution Channels?

Customer Relationships?

Revenue Streams?

What are the most important costs inherent in our business model?

Which Key Resources are most expensive?

Which Key Activities are most expensive?

For what value are our customers really willing to pay?

For what do they currently pay?

How are they currently paying? (How would they prefer to pay?)

How do we report on this “revenue” to the rest of the organization?


Align With Strategy

Solve Meaningful Problems


Understand your true worthas a strategic necessity

Eliminate the unnecessaryshed all the dead weight

Organize your informationto lay a foundation for insight

Automate the operationalset yourself free to do great work

Maximize business valuealign activities to strategic outcomes

Solve meaningful problemslearn to think, act, and win like a business.

Measure and reportthe value and impact of your work

ESCAPE ELEVATE

Solve Meaningful Problems



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Rusty LindquistVP of HCM Strategy & IP

BambooHR

@[email protected]

linkedin.com/in/rustylindquist

Angela WatsonEnterprise Account Executive

eFileCabinet

[email protected]/in/angela-watson-5354903a

Questions?