Strategic HR for Value Creation

8/12/2019 Strategic HR for Value Creation

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STRATEGIC HR

FOR VALUE CREATION


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WHAT IS VALUE

CREATION?

2

Now

Then Now

DUBAI

THE INDUSTRY

COMMUNICATIONS

THEN & NOW


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VALUE CREATION

An Organizational Context

Building a High Performance Organization

Creating VALUE for All Stakeholders

More classically, From an Organizational Perspective, Value Creation implies

Stakeholder VALUE

Shareholders Dividend Earning / Market Capitalisation

Customers Customer Delight / Value for Money

Partners Earnings from Association

Employees Livelihood / Quality of Work-life

Society Economic / Social Prosperity

Planet Environmental Sustainability


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HIGH PERFORMANCE

ORGANIZATIONS- The Character isticsLEADERSHIP Thinks strategicallyFormulates plansAllocates resources

Builds engagement

Drives accountability

Delivers results

STRUCTURE &DESIGN

Structure & Design closely linked to StrategyIndividual capabilities matched to Role

requirements

Proper delegation extended with accountability

PEOPLE Aligned

Empowered

Engaged

CULTURE Managed & aligned to achieve strategic objectives

CHANGE Managed by continually aligning, adapting,

communicating & cascading change


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THE VALUE PARADIGM OF

HR

5

Build A

HIGH PERFORMANCE

ORGANIZATION

Enable Value

Delivery to All

Stakeholders or

the Organization

Develop

Organizational

Capabilities

Create

Competitive

Advantages

Strategic Partner

Enabler of Business

For this to happen, HR needs to

transformitself to a


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TRANSFORMATION OF HR


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THE HR EXECUTIVE OF

TODAY

7

Todays HR Executive - Competencies

Technical

Skills

Interpersonal,

Team andLeadership

Personal

Attributes

Business

Acumen

HRS PARTNERSHIP WITH CORPORATE STRATEGY


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BL HR RESPONSERationalization ofManpower

Strength down from 3385 (1993)

1429 (2007)

Alternate Models of

Manning(Outsourced| Contractual|

Vocational Training)

Improving Productivity

as an HR Strategy

Focus on Quality &

Customer Orientation

Managing Constituents(InternalIndividual Employees &

Collectives

ExternalStatutory Authorities,

Bureaucracy & Politicians )

Competency Exercises

e-HRWorkplace Organization

Sort / Set in Order / Shine /

Standardise / Sustain

Safety and Health

InitiativesCSR Initiatives

COMPETETIVENESS IN BL THROUGH HR INITIATIVES-Recap of the BL Business Scenar io & HR Response- 1990s/Early 00s


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ROAD AHEAD FOR HR

System Related

Driving down new

initiatives/ ideas

Developing compatible

standards

9

Structure Related

Varied Sectors of

Operations

Diverse Business Processes

Varying degree of

Complexity

Unique customer types

Market Related

Spiraling Mkt. Offerings

Complex/ High Value

Aspirations

Shortening Life Cycles

Individuals career

expectations

Practice Related

Different domains of

Talent requirement

How to develop

Unifying Culture

How to master varied

processes (on-roll &

off-roll strengths are

same for BL)

CHALLENGES

SOLUTIONS


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STRATEGIC HR CHALLENGES

WORLD WIDEBCG Survey on Creating People Advantage 2010

Top 10 Challenges 2010-15 *

1 Managing Talent

2 Creating & developing Leadership

3 Managing work-life balance

4 Becoming a Learning Organization

5 Enhancing Employee commitment

6 Effective Performance Management & Reward Systems

7 Transforming HR into a strategic business Partner

8 Managing Change & Cultural transformation

9 Managing CSR & Sustainability

10 Managing Diversity

HR can add

value by

successfully

responding to

strategic

Challenges


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The next generation of HR transformation is

more tightly linked to corporate strategy and

to creating business value through HR

initiatives.

For HR to change the way it is perceived, it

must take the initiative and deliver results onstrategic business issues


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STRATEGIC CHALLENGE

- RISK & COMPLIANCEHow HR Can Help Create Value

Global workforce security-

HR to playing a larger role to provide security and safety of the workforces.

Regulatory compliance-

HR to create a corporate culture that supports compliance.

HR responsible for all people-related compliance activities, including worker

training and formal certification programmes.

Governance-

HR to help establish an effective governance structure to help improve

decision-making processes, and align performance management with

company principles and objectives.


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The Continuum of HR Value Creation:

Is Your HR Function Leading or Lagging?

Administrator and

functional/technical expert

Focused on delivering HR

services

Do not have the necessary

business and analytical

competencies to tackle

business issues

Strategic business partner

alongwith administrator and

functional/ technical specialist

Actively focussed on business

challenges viz talent management

and executive development

HR staff have skills, training andexperience to fully address

strategic business issues

HRs

role

Lagging Leadin

g

Service

Deliver

y

Few performance standards

for HR services

Employee experience is

secondary to HR efficiency

Each business unit has its

own standards for systems,

processes and practices

Performance standards in place

Employee experience drives

service delivery

Global standards for all systems,

processes and practices

Transactions and administration

are handled through self-service

and require little support from HR

Integration with technology


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Whats Next?

HR to elevate its role and drive more value in the company:

Continue to improve HR operations

Continuously work towards transforming and restructuring the HR operations

Move up the HR talent

Relieving HR staff of their administrative burden doesntmean they are ready to

contribute on a strategic level.

HR must objectively assess its current tactical capabilities against its future

strategic needs, filling the gaps through training and hiring.

Join the strategy discussion

HR must take the initiative and deliver results on strategic business issues, such as

mergers and acquisitions, new market development and talent management


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HR That Means Business


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Technology

Connectivity: always connected

Accessibility: no boundaries

Ambiguity: uncertain future

Industry/economic trends

Adaptability: the need to change

Intensity: market conditions

Convergence: overlap of industries

Demographics

Mobilit : movement of talent loball

G

L

O

B

AL

I

Z

A

T

I

O

N

NEW BUSINESS REALITIES


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Strategic HRM

Strategy determines the direction in which the organization is going in relation to itsenvironment.

Strategic HRM is an approach to making decisions on the intentions and plans of theorganization concerning the employment relationship.

Concerns of strategic HRM

To address broad organizational issues relating to

a) Organizational effectiveness and performance

b) Changes in structure and culturec) Matching resources to future requirements

d) Knowledge management and the management of change.

e) Meeting human capital requirements and the development of process capabilities,that is, the ability to get things done effectively.

STRATEGIC HRM

Documents

Strategic HR for Value Creation