Richard Bahner Phone 973 479-6288

HR eROI Change Management Decision Capacity ModelAudit – Analyze – Align Assets – Execute – Measure HR ROI – Rebalance Investment

Issue - Whenever an organization decides to execute a new Business Strategy, Acquisition / Merger, Globalize to a new level or make a Top Management Change, it needs to assure that all Business and Organizational Assets are well managed. Not effectively linking and managing processes, measuring performance, and obtaining a positive ROI is the reason most changes fail.

Rationale – Organizations can develop the best business strategy, but if they do not have the organizational capability to execute the new level of business activity they will not get the needed level of economic benefit to be successful.. The HR ROI Change Management Model facilitates obtaining optimal measures of investment return from both the business and organizational assets to assure the maximum Return of Investment during the change process for the shareholders.

Process - The HR ROI Change Management Decision Capacity Model has three components:

The Business Audit - gives the Human Resources Organization a clear understanding of the critical support elements required for the success of the business strategy• The Human Resources Audit - aligns the Human Resources People, Policies, Processes and Assets to effectively support the business strategy and creates a support environment for successful execution of leadership decisions and process changes

.

• The Customer Audit – analyses of the future market, “technology”, end customer needs, desires and requirements for performance to ensure the new business strategy or change will succeed and provide a clear market differentiator for the organization.

The Model uses investment analyses to determine the proper balance for the business. Based upon the audits / analysis. Human Resources then gets agreement from Line Management

on the recommended people investment initiatives required to achieve strategic line objectives.

HR ROI - Human Resources facilitates a Human Resources Return on Investment Measurement System to review the results generated from recommended support initiatives. Based on this ROI review and the HR Building Blocks Alignment Approach, Human Resources then makes best cost decisions on further investments required to create a positive “Culture for Success” for the business. They then facilitate the develop of the right organizational leadership in the right positions at the time to increase the decision capacity of the business management and help drive superior results.The HR ROI process assures continued increase in joint ROI and profits during the change period.

Results - The Model is a quality driven process that effectively aligns all the assets of the company to focus on the end customer, generate strong business results, manage costs / cash flow and create the business environment that supports changes needed to effectively execute the strategy.

HR ROI Change Management Model Product Offerings –

- Proprietary Business and HR Audit Process - HR ROI Measurement System, - HR Building Blocks Investment Platform - Management Decision Capacity Tool - STARS Organization Change Measurement Plan - Human Resources Planning Process

HR ROI Change Management Decision Capacity Model Execution Experience –Successfully implemented in Pepsi International, AT&T International, Citibank and Deutsche Bank business units with local and HQ management in the US, Europe, Asia and Latin America markets. HR ROI at DB Article Link - http://www.businessperspectives.org/journals_free/ppm/PPM_EN_2004_04_Bahner.pdf

Measuring all areas of Investment in the Business Model Human

Resources Audits Business Process Audits Customer Satisfaction AuditsTransforming the business by increasing business profits, reducing risk and improving company investment balance through effective measurement of its people, policies, processes, asset use and strategy execution.

Customized HR eROI Measurement / Decision Making Systems

Determine investment leverage of both business and organization processes / decisions and where investments should be made on a best cost basis.Prioritizing operating tasks required to assure the success of the business strategy, expected rate of return for both business and organization investments and right mix on both sides of the execution equation.

Establishing a Corporate Dashboard to measure the success of the company asset investment strategy.

Determine how best to support the Business Planwith limited capital. Manage / Measure Human Resources Processes / Assets to assure that they are aligned with business processes and priorities.Create a Customized Culture of Success that Drives Business Results and Shareholder Value. Developing the future leadership and skills in the organization required to continue growth, provide innovation and effectively manage the business. Drive HR Support Processes Development Plan.

HR eROI CHANGE MANAGEMENT DECISION CAPACITY MODEL

BUSINESSSTRATEGY

ORGANIZATIONSUPPORT PLAN

TECHNOLOGY

CDNA HR ROI

BUSINESSAUDIT “B”

CUSTOMER AUDIT “C”

AUDITINGINVESTMENT

LEVELS

HRAUDIT

“A”

MARKETS

Richard Bahner – Global Change Management Consulting Specialists in: Transformation Management, Human Resources Strategy Alignment,

Corporate Culture Change, Business Process / Human Resources Audits, Cross Cultural Initiatives, Human Resources ROI Scorecards, Organization Design and Execution Solutions that focus on Balanced Investments to drive Business Results, Profits and Share Growth

HR eROI CHANGE MANAGEMENT DECISION CAPACITY MODEL DETAIL Audits – Analysis – Alignment – Execution – Measurement – Rebalancing Investment

Change Issues Audits “Evaluate All Change Investment Areas”

Investment Analysis “Assure Economic Pull Through”

BUSINESSINVESTMENT

STRATEGYMarketsTechnologyProductsServicesFinance

LEADERSHIP

VISIONMISSON ORGANIZATION

INVESTMENT

CULTURE

. HR Support

MAKE THE BEST COST INVESTMENT DECISIONS

50 - 70% 30 – 50%

SUPPORT SYSTEMS

BUSINESS COSTS

“BALANCED INVESTMENT IS KEY TO SUCCESS”

Aligning Human Resources Support “Building a Culture for Success”

OPERATING TASKS

EMPLOYEERELATIONS

ORGANIZATIONCOMMUNICATIONS

WHAT HR NEEDS TO BE MEASURE AND ALIGN

COMPENSATION& BENEFITS

POLICY &PLANNING

CORPORATECULTURE

WORKFORCEMOBILITY

ORGANIZATIONDEVELOPMENT

EDUCATION& TRAINING

RECRUITING& STAFFING

CORPORATECULTURE

WORKFORCEMOBILITY

ORGANIZATIONDEVELOPMENT

EDUCATION& TRAINING

RECRUITING& STAFFING

POLICY &PLANNING

COMPENSATION& BENEFITS

STRATEGY SALES /MARKETING

PRODUCTS /SERVICES

ORGANIZATIONSTRUCTURE

RESOURCE MANAGEMENT.

SHAREHOLDERVALUE

INFORMATIONMANAGEMENT

* CULTURE - Market Entry * Developing * Consumer Focus * Multinational * Mature *SHIFTPOINT

HR CORE PROCESSES

PRESENT

STATE

B U S I N E S S P R O C E S S E S

DESIRED

STATE

HR ROI PLAN – FOCUS ON

WORK WORTH DOING

HR ADMINISTRATION – ( ACCOUNTING, AUDITS, BSVP, MEASURES, OUTSOURCING, PEO, REPORTS, SOX )

Getting the right leaders in the right positions at the right time is the key to continuous improvement and effective execution of the business strategy and change initiatives.

STARS © - (Strategic Talent Analysis Review System)

Facilitates getting the managers with superior skills and capabilities in place to lead the organization and achieve improved levels of performance.It also evaluates the organization capacity to manage change i.e. Mergers and Acquisitions

Superior Decision CultureEffectively measuring and rebalancing the initiative investments required to assure effective Company and Individual Management Decision Capacity, Performance is key to building a “Culture of Success” and achieving superior results of change.

The Model utilizes the Decision Assessments Suite to facilitate a clear understanding of the actions to be taken to assure the creation of a Superior Culture and improving the Decision Capacity of Company Management.

Executing Organization Change “Leveraging Company Talent”

Measuring Decision Performance “What Gets Measured Gets Done”

Execution of the HR eROI Change Management Capacity Model Pepsi Cola - Instituted Franchise Representative Model in all of Latin America – Eliminated a level of the organization and increased market share by 7%

AT&T International - Combined AT&T, NCR and Lucent Human Resources Groups. Implemented change globally in 20 months on a country by country basis - Saving $14M

Deutsche Bank - Converted Asset Based Lending Business to an Industry Focused Business Model - Implemented new ROI model in 14 months driving profits from 73% to 105% of plan. Deutsche Bank Article - http://www.google.com/search?hl=en&ie=ISO-8859-1&q=richard+r+Bahner

Phone - 01 973 479 6288 Skype – Richard.R.Bahner Email – Richard.R.Bahner@gmail.com

MANAGEMENT / CHANGE

PERFORMANCE

OBTAININGSUPERIOR RESULTS

MEETINGCUSTOMER

NEEDS

The Management Performance Gap

MiddleManagersDirectorsTechnical

ManagementSales

Management

CEO,Senior

Management

SupervisorsCustomer ServiceManufacturing /

AssemblyResp

onsib

ilitie

s and

Skill

Set R

equi

rem

ents

Employee Performance(Effect of Decisions)

Strongest PerformersWeakest Performers

50% - 100%

500% - 1,000%

©

R. Bahner International

“STARS”STRATEGIC TALENT ANALYSIS REVIEW

SYSTEM

l

DECISION CAPACITY ASSESSMENT

CDNA Distributers NA LLC