Lecture1 Cairo

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Transforming HR

into a BusinessPartner

ITU Regional Workshop on Strategic HR Management

Cairo 13-17 April 2008

Lecture 1


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Presentation Outline

Market analysis and its impact on HR Business plan Structure-HR consideration Case study Transformation Statistics The Transformation Wave The Changing Role of HR The Business Partner Role

Key Roles of HR as a Business Partner Conclusion


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National Advantage in HR

Firm StrategyStructure and

Rivalry

FactorConditions

DomesticDemand

Conditions

Related andSupportingIndustries

Chance

Government


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HR issues

Competition in the labour market

Rivalry between competitors

Demographics (customers)

Age structure, lifelong employment?

Rokkies, who will be accepted?

Staff from related industries

Domestic-versus regional globaldemand


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Bureau Industry Competition;

The Five ForcesPressure determine prices, cost, investments ,Hr capitaletc.

Threat of newEntrants

BargainingPower ofSuppliers

BargainingPower ofBuyers

Threat ofSubstituteProducts

Rivalry amongExisting

Competititors


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New Entrants-Incumbent

Offer better salary-promotion- trend

New technology-support (capacitybuilding)

High responsibility deliver-promotion

Competence gap

Outsourcing of training-to whom

The role of education systems


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Bureau Generic Strategies and impact

on HR strategies

Competitive Advantage

CompetitiveScope

Lower Cost Differentiation

BroadTarget

NarrowTarget

CostLeadership

Differentiation

CostFocusFocused

Differentiation


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Bureau Statistics of HR

Transformation

50% of organisations are in the middle oftransforming their HR functions;

12% completed their HR transformations in the

past year;

Another 10% intend to begin the process in thenext year.

(Global HR Transformation Study, 2006,Mercer Human Resource Consulting)


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HR Transformation

Process of Recreating the HR function so asto enhance HR contribution to the business

It involves a shift from the internal operations(transactional, inward) activities to a more

market perspective related performance.

Over the years role has been evolving, butwithin its HR (Personnel) box. Currenttransformation is breaking outside the box

Now HR transformation deals with issues ofOrganisational Renewal, ChangeManagement, Business Success, Businessintellegence, Culture, Behavioral Change.


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Transformation Wave

5-10 years ago: focused on improvingtechnology and service delivery, technologyshift gives new aspects

Competition, Time to market, Intranet,Restructuring/Rightsizing, Outsourcing

This was the role of HR as a Consultant. Roledid not transform the HR function into a

business partner

Now HR is being called up to deliver


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Transformation Wave

HR Business Partnering model often started off as a CostSaving initiative, responding to a Business Directive. Thiswas the Driving force of the model in the 90s.

Led to the introduction of IT Driven HR Services, Self-

service forms processes etc.

What started as a Cost Reduction/Competition Programended up as a Revitalisation of the whole HR Activity

Now HR is the driving the vision-strategy targets

Closer follow up related to market changes


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Changing Role of HR

HR

ROLE/CONTRIBUTION

LOW VALUE HIGH VALUE

TRANSACTIONAL

CONSULTANT

BUSINESS

PARTNER


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Changing Role of HR

TRANSACTIONAL

Inform

Police

Control

Reactive

CONSULTANT

Advise

Solutions

Inward

Reactive

BUSINESS

PARTNER

Integrate

Strategy

OutwardProactive


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Transactional example of HR

Delivering a Service to a client or enduser.

Recruit an EngineerInvestigate a discipline Case

Book Training for the participants tothe Cairo Workshop

Provide Consulting

Plus all the other Record keepingFunctions


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CONSULTANT

Provide HR to a Business Unit in orderto solve a specific problem.

Define competence requirements

Giving advice in dealing with specific

issues eg.: How to stop a Competitorfrom poaching your staff; How to createa Customer Care Culture.


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PARTNER

Working with the top Management Team as apartner in:

Participating in defining Business Strategy.

Actively live up to Vision and missionstatement

Influencing change in Strategy in view of theorganizations Talent Base, or ability to build

one in the short Term. Develop capacity building

Implementing the HR component of theBusiness Strategy.


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Strategist and Steward

Deloitte Report (2007) on the EvolvingRole of the Chief Human ResourcesOfficer (CHRO).

Todays CHRO is a leader who not onlymanages the HR function, but alsocollaborates with the CEO and Board ofDirectors on a range of Strategic issues.

They play a role in building and shapingnot just staffing- enterprise Strategy.


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Discuss priorities

What priorities in you county ?

Depending on situation

Process job design

Define future workforce size-competence

Capacity building

Define redundancy


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1. WORKFORCE STRATEGIST

Crafting workforce Strategies with an eyeon global trends

Conscious of the Challenge of Attraction andNurturing Capacity building

Next Generation Perspective including

technology shift

Understanding of the Needs of TodaysWorkforce


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Performance Conductor

Making choices among options ofmaximizing performance of workforce

CHRO must be a Rewards ProgramStructuring the job design, a change

Master


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3. HR Service Delivery Owner

Still Delivering HR Admin andoperations in a Cost Effective way.

A mix of Self Service operations, useof Vendors (outsource) and

integrating these into one whole.


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Regulator

Work directly with the Board on HRIssues relating to Risk Mgt, Business

intelligence, Ethics, Integrity

Assist Board with Member Selection,Executive Compensation, SuccessionPlanning, etc.

Interpretation of regulatory issues


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What is HR as a business partner??

Must manage people (TalentManagement)

Identify skills required within people inthe organisation (Competency Profiling)

Develop and supply quality executives(Leadership Development)


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Understanding the business

Being concerned with the bottom lineand impact of any decision onprofitability.

The business environment (SWOT,competitor moves, market share, etc.)

Understanding customers, customerprofiles (segments) and their needs.Why ?


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HR as Capacity building force

HR as Change Manager(Opportunities-Steering)

HR as Relationship Builder

HR maintaining Human Capital

Four Key Roles of HR as aBusiness Partner


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HR as Capacity builder

Participate in formulation of list oforganisational and individual competencieslinked to the corporate goals or strategiesand support systems

Develop access to information and has keyrole in information dissemination (analyzeshifts in market and draw conclusions on HR

need

Identifying, nurturing, developing anduntapping human talent.


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HR as Knowledge Facilitator

This assumes HR is involved in theformulation of the OrganisationsVision, Mission and Business Strategy;

Must be part of the Management toadvise on what is possible given thestock of talent and capacities availablein the oganisation;

Propose Strategies that best attractsand retains the talent that will deliveron the Business Objectives.


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HR as Relationship builder

Both internal and external customers (followmarket demand

Supply Chain Management (in telecomsthis is important for maintenance of brandimage and brand integrity

Branding ? is a powerful tool for promoting

Culture. A growing school of thought is thatBranding is as much an HR responsibility asit is a PR function because of its power toattract and retain employees.

Managing diversity

HR R l i hi B ild


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elecommunicationDevelopmentBureau HR as Relationship Builder:

Managing Diversity

Many organisations now operating indifferent cultural environments and marketsand different owners requirements;

MTN is in Africa, the Middle East. Vodafoneis in UK, Europe, South Africa, Kenya.France Telecom has just won the bid for

Telkom Kenya, and will bring their ownmanagement styles and culture.


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HR as Human Capacity builder

Career Management

Facilitate progression of staff based ontheir competencies, desires andcontribution to organisational goals

Capcity Building (job design) inanticipation of future needs


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elecommunicationDevelopmentBureau So What is Strategic Human

Resources Mnagement??

It is about getting the Human ResourcesFUNCTION INTEGRATEDwithin the Business.

It is about INVOLVEMENT in the BusinessStrategy Formulation Process.

It is about being listened to and heard,because Human Capital is the onlySustainable source of CompetitiveAdvantage at the Disposal of the

Organisation.


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So What is Strategic HumanResources managing??

But it is up to the HR Function to rise tothis Challenge.

In fact, it is up to the HR professionalsto rise to the new challenge of the HRfunction.

After all, this is what we have beenasking for.


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CONCLUSION

As Human Capital Related IssuesContinue to Challenge on

Organisations overall Strategy,The Human Resources managermust become a familiar face inthe Management Team and apotent force in the boardroom.


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CONCLUSION

Findings however reveal a troublinggulf between the needs of the businessand the ability of HR to respond.

This is forcing companies to rethinktheir approach to the recruitment,training and development of HR

Documents

Lecture1 Cairo