Living Your Mission, Vision and Valuesmd.shrm.org/sites/md.shrm.org/files/M Couch - HRs Role in Strategy...Living Your Mission, Vision and Values ... Market Value Solutions Mission-Critical

Living Your Mission, Vision and Values

HR’s Role in Strategy Execution

Michael Couch, SPHR, HCS President, Michael Couch and Associates Inc.

2016

Strategy

People

Processes

Building a Strategy Capable

Organization

Living Your Mission, Vision & Values

© Michael Couch & Associates Inc. 2010 All Rights Reserved. 2

Strategy

People

Processes

Strategy Deployment

Strategic Talent Management

Organization Capability

HR’s Role In Strategy Execution


Strategy Execution Quiz


Your Strategy Challenges ?


Strategy

People

Processes

Living Your Mission,

Vision and Values


Strategy Defined

A framework which guides the choices that determine the nature and direction

of an organization

How Value will be

created

What to Do & Not

to Do

Meaningful Results

Effective Behavior

7

© Michael Couch & Associates Inc. 2010 All Rights Reserved.


Business Strategy

Organization Demand


Assuring that talent makes a difference in executing strategy

Strategy-Driven Organization DevelopmentSM

8

Business Strategy

Talent Management

Put Strategy First, Not People

Be a Business Advocate First,

A People Advocate Second

9

Strategy

People

Processes


Vision and Values


Creating Customer Value

Value

Mar

ke

t S

har

e/R

eve

nu

e G

row

th

Value Touch Points

Brand/Image

Price Fairness

From Reg Goeke Market Value Solutions www.marketvaluesolutions.com The Institute for the Study of Business Markets Penn State University

11

http://www.marketvaluesolutions.com/

Creating Value

Value

Mar

ke

t S

har

e/R

eve

nu

e G

row

th

Value Touch Points

Brand/Image

Price Fairness

Dealer Service

Machine Operation

Machine Productivity

User Training

Order & Delivery

Machine Reliability

.23

.19

.15

.15

.08

.07

.62

.10

.28

Agricultural Tractors

From Reg Goeke, Market Value Solutions

Mission-Critical Processes

12

Return on Improved Performance (ROIP) ala John Boudreau*

Performance

Str

ate

gic

Val

ue

Dealer Service

Order & Delivery

Improved performance is not equally valuable in

all roles

*Retooling HR, 2010

13

One top-notch engineer is worth "300 times or more than the average”

Robert Eustace Senior Vice President of Knowledge at Google Wall Street Journal 2005

14

Mission Critical

Processes & Roles

Talent Capability

Invest to Create and Drive Value © Michael Couch & Associates Inc. 2010 All Rights Reserved. 15

Strategy

People

Processes


Vision and Values


Strategy

People

Processes

Strategy Deployment



HR’s Role


StratCo

Strategy Realization

Cascading Strategy from Vision to Performance

“Companies that more closely aligned goals across their

organization enjoyed much higher levels of financial success”

How Smart HCM Drives Financial Performance Workforce Intelligence Institute & Success Factors, 2006

Aligning the organization with the strategy by cascading goals and objectives down through the organization

2016 Strategic Talent Management Survey Sponsored by the PHRA and Pittsburgh Technology Council

* Based on Profitability and Customer Service/Retention

*

Strategy Deployment X Matrix

Breakthrough Objectives

Value Drivers

Annual Improvement

Priorities

Key Initiatives and Owners

Str

ate

gy

De

plo

yme

nt

X M

atri

x

Value Driver

Annual Improvement Priority

Ke

y In

itia

tive

Value Driver

Bre

akth

rou

gh

Ob

ject

ive

Bre

akth

rou

gh

Ob

ject

ive


Ke

y In

itia

tive

Ow

ne

r

Ow

ne

r

Str

ate

gy

De

plo

yme

nt

X M

atri

x

Order to Delivery Lead Time

Lead Time reduction of 10% on top 5 products

Ke

y In

itia

tive

Value Driver

Bre

akth

rou

gh

Ob

ject

ive

Re

du

ce L

ead

Tim

e b

y 10

%


Val

ue

Str

eam

Map

to

p 5

pro

cess

Ow

ne

r

Jim

Cascading Plan Action Performance

Project Plans • Objectives • Owner • Expected Results • Due dates

Annual Performance ObjectivesEmployee: Jim

Objective Expected Result Due Date1 - Identify top 10 products to be mapped Top 10 identified and communicated 01/31/14

2 - Assign leaders to each product to be mapped Leaders aware of their products 02/03/14

8a - VSM kaizen for product E Mapped and on the wall 08/16/13

8b - Complete actions to achieve 8% reduction in overall leadtime Validated results 12/12/14


Deployment Plan

Employee Performance Plan

What’s Up, Jim?

“Our team is reducing order to delivery lead time on our

top 5 products by 10% this year and by 25% in 3 to 5 years.

Its one of our four Breakthrough Objectives.”

Its Time to Ditch Conventional Performance Reviews

Managers dissatisfied with PM systems 95%

90% HR heads believe they do not yield accurate information

“If you want a high-performance organization, you have to

reverse the destructive effects of conventional Performance

Management.”

“PM systems that attempt to serve too many purposes tend

not to do any of them very well.”

Rethinking Conventional PM

Align every employee to the

strategy

• Aligned goals

• Ongoing feedback and coaching

• No Ratings

IMPACT

Better match the nature of work today

Improved collaboration

Attract & retain talent

Develop people faster

Impact on Employee Performance


Source: CEB Corporate Leadership Council (2004)

Feedback Rich Environment

32

Ongoing feedback,

planning and

development

Set

Goals

Review

Performance

Typical

Conversations

Improved

Conversations

Its All About the Conversation

What would it look like if the quality of your conversations was . . .

• More future-focused

• More engaging

• More of a dialogue about progress, plans and support

Aligning Goals in Real-Time

33

Strategy

People

Processes

Strategy Deployment



HR’s Role



Business Strategy

Organization Demand




Assuring that talent makes a difference in executing strategy

Different strategies require organizations

with different capabilities

Strategy Drives Capabilities and Talent

37

Strategy

Organizational Capabilities

Leadership Competencies

Aligning Talent to Strategy

Organization Demand

• Execution and Decision Making

• Innovation Leadership

• Customer Focus

• Upgrading the Workforce

• Focus on Core Capabilities

• Building Competitive Advantage

• Engaging Employees

• Mature Market

• Slow Execution

• Standard Offerings

• Declining Retained Earnings

• Little Competition

• Silo’d Units

• Accepted High Turnover

Past Capability Future Capability

Strategic Effectiveness Architect®

Regional Human Services Non-Profit

39

Mission Critical Competencies

• Execution and Decision Making

• Innovation Leadership

• Focusing on Customers

• Upgrading Workforce

• Focusing on Core Capabilities

• Building Competitive Advantage

• Engaging Employees

• Innovation Management

• Strategic Agility

• Business Acumen

• Perspective

• Managing through Systems

• Managing and Measuring Work

• Timely Decision Making

• Organization Agility

• Drive for Results

• Motivating Others

• Managing Vision and Purpose

Bu

sin

ess

Str

ate

gy

Key Organization Capability Critical Leadership Competencies

Strategic Effectiveness Architect® Leadership Architect®

What are Competencies?

Measurable characteristics of a

person related to success at work

• Observable behaviors

• Varying Developmental Difficulty

• Performance and Potential

Competencies allow organizations to . . .

If you don’t get the competencies right, the rest doesn’t matter

Consistent application of competencies improves talent decisions

Align talent with strategy

Integrate talent

processes


Aligned Talent Management

Competencies

Competencies: The compass that keeps the strategy on track



Business Strategy

Organization Demand


Integrated Talent Management

Competency Models

Acquire

Develop

Promote

Assess, Plan & Deploy

Business Strategy

Consistent application of competencies improves talent

decisions

2016 Strategic Talent Management Survey Sponsored by the PHRA and Pittsburgh Technology Council

Building Competencies

• Don’t start from scratch

• Focus on the future

• Model High-Potential, High-Performers

• Model roles NOT departments and titles

• Validate against the strategy


Strategy

People

Processes

Strategy Deployment



HR’s Role


Talent Assessment

• Robust Talent Reviews

• Honest and open conversations

about performance and potential

• Assess talent capabilities and gaps Hewitt Associates, Talent Management Magazine

What’s the best tool to assess the overall capability of an organization’s

talent?

Talent Assessment Keys to Success

48

• Trained facilitator

• Objective, candid discussions

• Multiple assessment sources

• Not just HR or Manager

• Focus on behaviors and impacts

• Targeted Action and Development Planning

• Integrate Follow-Up in regular business discussions

Capability Assessment

Talent Reviews

Organization Capability Assessment


Ag

ile

Exp

an

dab

le

At

Po

ten

tial

Less Effective Solid Exceptional

Performance Effectiveness

Gro

wth

Po

ten

tial

High Potential

Emerging Leader

Adaptable Performer

Adaptable Contributor

High Professional

Performer

Diamond in the Rough

Questionable Fit

Marginal

Organization Capability Assessment

Capability Builders

Capability Foundation

Capability Limiters


Ag

ile

$168,800 $616,230 E

xp

and

able

$132,000 $975,480 $271,930

At

Po

ten

tial

$405,390 $151,170

Less Effective Solid Exceptional

Performance Effectiveness

Gro

wth

Po

ten

tial

Is This A Strategy-Capable Organization?


© Michael Couch & Associates Inc. 2010 All Rights Reserved. www.mcassociatesinc.com

52

Building Organization Capability

Action Planning to build Organization Capability and Readiness with Accountability, Resources and Time Frames

Org

aniz

atio

n D

eve

lop

me

nt

Act

ion

Pla

ns

Building A Strategy-Capable Organization

1. Remove marginal leaders in mission-critical roles

2. Create strategy-driven Competency Models

3. Build Leadership Capability at all levels

• Accelerate the intentional development of new leaders

• Plan the intentional development of future leaders

4. Build competency-based selection and promotion

Regional Human Services


Developing Capability Pays Off

High Performing Organizations* are:

3.5x More effective at

Succession Management

3x More effective at

Leadership Development

* In Revenue Growth, Market Share, Profitability and Customer Satisfaction

But . . . .

Evolution of Development

Past Learning Today’s Learning

• Classroom

• Individual

• One Shot

• Hit or Miss

• Blended Learning

• Action-based

• Support from others

• Continuous

Intentional Development

57

People Asset Review

Growth Strategy Customer, Brand and

People

Critical Capabilities

Capability Action Teams

Strategy

People

Processes

HR’s Role In Strategy Execution

• Link talent strategy to business strategy

• Translate strategy into goals

• Focus on mission-critical processes and roles

• Identify strategic competencies

• Assess and improve organization capability


• Top 10 Signs that You Are NOT Taking a Strategic Approach to Talent

• Building a Robust Succession Management Process

• Assessing Your Organization's Talent

• Talent Management Derailers: Keys to keeping your talent train on the track

• The Elegance of Competencies

• Leadership Development Redefined

• Leveraging Culture to Impact Business Results

Sign up for my newsletter: Competing Through People

www.mcassociatesinc.com Free Whitepapers


[email protected]

412-952-9036

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Documents

Living Your Mission, Vision and Valuesmd.shrm.org/sites/md.shrm.org/files/M Couch - HRs Role in Strategy...Living Your Mission, Vision and Values ... Market Value Solutions Mission-Critical