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Moving from Cost Center to Strategic Business Partner
Clint Tripodi
• The Evolution of HRM.
• HR as a Cost Center... Why Should I Care?
• Kill the Status Quo.
• Becoming Strategic.
• Asking the Right Questions.
• Traits of Successful Strategic HR Leaders.
April 29, 2014
Overview of the Session
• Last Year, Zappo’s CEO, Tony Hsieh Decided to add a Fourth ‘C’ to Zappo’s Brand of Clothing, Customer Service, and Company Culture.
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What Would You Have Done?
▫ The Fourth ‘C’ is Now Community.
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• When and How Would HR’s Involvement Bring the Greatest Business Value with this Scope of Decision and Change?
What Would You Have Done?
5April 29, 2014
1890’s - 1913
“Welfare Officer”
“Labour Manager”
“Personnel Management”
“Human Resource
Management”
“Strategic Business Partner”
1914 - 1939 1940 - 1979 1980 – 1990’s
2000 & Beyond
Evolution of HRM
6April 29, 2014
HR Model for 2014+
Structure - Identifying and Developing Roles and Responsibilities to Execute Strategies.
7April 29, 2014
HR Model for 2014+
Processes – Utilizing Best Practices to Achieve Predictable Business Results.
8April 29, 2014
HR Model for 2014+
Talent – Attracting, Aligning, Developing and Retaining the Right People to Execute Your Business Strategy.
9April 29, 2014
HR Model for 2014+
Metrics – The Ongoing Performance Indicators that Drive Business Success.
10April 29, 2014
HR Model for 2014+
Strategy – The Data Driven Plans Designed to Help You Compete in Current and Future Markets.
11April 29, 2014
HR Model for 2014+
Improving Bottom Line Performance
Top Line Growth
People Systems
Strategy
Structure
ProcessesTalent
Metrics
What Gets in the Way of Being
Strategic?
April 29, 2014
Vulnerability
13
You Must Believe You Are Worthy
• Courage: To Be Imperfect.
• Compassion: Be Kind to Yourself and to Others.
• Connection: As a Result of Authenticity, Be Who You Are, Not Who You Think You Should Be.
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Vulnerability is the Birthplace of…
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InnovationCreativityChange
Joy
Becoming Strategic…
• Start Testing the Roots of Your Vulnerability.
• Challenge Your Creativity.
• Seize the Opportunity: Take Control & Act Now!
• Think Like a Business Person First.
• Perfect Market Conditions for New Ideas. Companies Need Our Guidance & Direction.
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April 29, 2014
P = R - C
Revenue– Cost
= Profit
HR is a Cost Center
• Department That Costs Money.
• Marketing, Finance, HR, IT, R&D are Examples of Cost Centers.
• First Targets for Downsizing.
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Cost Structure
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• General & Administrative:
Deloitte Consulting LLP (2010)
▫ G & A is 20 - 35% of Revenue.
▫ Perception that These Departments Add Little or No Value.
Cost Structure
April 29, 2014Deloitte Consulting LLP (2010)
• The Key is a Strategic Approach:
▫ Delivers Major Structural Breakthroughs.
▫ Not Just Incremental Improvements.
Kill the Status Quo
April 29, 2014SOURCES: CFO Research Services (2003) & Kahnweiler (2006)
5 Key Challenges Faced by HR
Today:• Perceived Lack of Power and Influence.
• Walking a Tightrope (Balancing Act).
• Dealing with Skeptics of HR.
• Fear of Vulnerability.• Being Overwhelmed.
Influence Starts at the Top
April 29, 2014SOURCES: CFO Research Services (2003) & Kahnweiler (2006)
• Boards of Directors have Differed Widely in the Extent of Utilization or Reliance on the HR Leader in the Strategy of the Organization.
April 29, 2014SOURCES: CFO Research Services (2003) & Kahnweiler (2006)
• HR Reports to the CEO in Only About 52% of Companies.
April 29, 2014SOURCES: CFO Research Services (2003) & Kahnweiler (2006)
• HR Reports to the COO in About 17% and to the CFO in About 13% of the Cases.
Competing Priorities of Human Resources
April 29, 2014SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE
Transaction Focused
Strategic Focused
Transaction Focused
Strategic Focused
We Have the Power!
HR is the Only Function with a “License” to Interrelate with Every Employee and Every Function in the Company and Beyond.
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How Are You Going to Make the Most of the Responsibility You Have
Been Given?
Strategic Engagement
• Strategic Partnering Starts with Engagement.
• Earlier Engagement Maximizes Opportunity to Influence and be Strategic.
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More Opportunity Some Little/Execute
Engagement Continuum vs. Time of Engagement
Early Late
Strategic HR Professionals
are Curious and Ask the Right
QuestionsApril 29, 2014
Strategic HR: Asking the Right
Questions• Leadership• Culture• Communication and Engagement• Workforce Planning• Talent• Retention• Performance Management• Team Development
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• Outsource the Delivery of Transactional Services.
April 29, 2014SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE
Be a Trusted Advisor:
• Develop the Internal Consulting Skill Sets that Enable the Transformational Part of HR.
April 29, 2014 30SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE
“HR Person Know Thyself”
HR Challenges
Art vs.
Science
Boardroom vs.
Department
Transactional vs.
Transformational
Enforcer vs.
Advocate
Profession
Perception
Influence
Skills
The Future Belongs to Strategic HR Leaders!
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32April 29, 2014
Mark Onetto Sr. VP WW Ops
“Do good for our customers andthey will do good for us”
Amazon’s Business Plan
“Head without Heart is Hopeless”
“Technology without People is Hopeless”
“Strategy without Execution is Hopeless”
“Perfection is not of this World”
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
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▫Focus on Business Principles and the Employee/Company Well-Being.
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
April 29, 2014
▫Constantly Think As If from the Outside.
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
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▫Demonstrate a Strong Competitive Drive and Passion.
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
April 29, 2014
▫Are Motivated by Doing the Right Thing for the Organization.
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
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▫Believe that Success in Relationships is Tied to the Accumulation of Quality Experiences.
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
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▫Embrace Effective Technology and Practices.
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
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▫Understand that a Continued Focus on Problem Definition and Resolution is More Important than Technical or Content Mastery.
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
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▫Believe that Both Selling and Serving are Aspects of Professionalism.
Traits of Successful Strategic HR
Leaders
• Strategic HR Professionals Demonstrate Predictable Characteristics:
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▫The Successful Strategic HR Professional is Selfless, Authentic and Real.
42April 29, 2014
For more information or to receive a copy of this presentation, feel free to contact Clint Tripodi
at: [email protected] or 707-812-2555.
April 29, 2014
Thank you!
Q & A
April 29, 2014
For more information or to receive a copy of this presentation, feel free to contact Clint Tripodi at:
[email protected] or 707-812-2555.
Thank you!
