Wanda J. Freeland, SPHR S.M.A.R.T. Performance Solutions
www.smartperfsolutions.com
� Evolution of HR � Review Roles of HR � Define Strategic HR � Business Acumen and Strategic HR � Checklist and Action Plan � Review HR Competencies (SHRM)
Small Business (1950’s)
Bigger Business
Corporations (1980’s)
Business Climate Changed • Restructure • Reorganize • Mergers • Takeovers
Training & Development
Corporations (1990’s - Current)
Strategic?
Employee Records
Industrial Relations
Transactional
Payroll
Staffing
Evolution of HR
Tactical
www.richardbatchelor.com
Business Climate Changed • Employment Law • Technology • Organizational Development
Transactional (Past & Present)
Focus: Administrative/Service/Compliance (Individual) - Record Keeping (Payroll, benefits) - Employee Files - Earning Summaries - Safety Compliance/Inspections - Employee Handbook/P&P
HO1
What % of your time is spent on Transactional Functions? ___________%
What % of your time is spent on Tactical Functions? ___________% HO1
Tactical (Past & Present)
Focus: Internal
- Day-to-day HR programs (w/o regard to Strategic Impact)
- Focus on Cost (Measures cost of programs; not impact on revenue/profits)
- Incremental Change (Subtle refinements to existing programs)
- Reactive actions (React to prevent/minimize negative impact of an event)
Strategic (Present & Future)
Focus: Big Picture Focus
- Recruiting (Using metrics to ID applicants/improve OJT of new hires)
- Compensation (Educating mgrs/providing tools to retain top talent)
- Performance Focus (Programs that directly improve employee productivity)*
- Business Acumen (Knowledge of company business and industry)* Def. Strategic. A course of action to achieve long-range goals, generally up to five years; reflects company’s direction and purpose; influence development of Tactical Plans.
HO1
Strategic (Present & Future)
Focus: Big Picture Focus
- Recruiting (Using metrics to ID applicants/improve OJT of new hires)
- Compensation (Educating mgrs/providing tools to retain top talent)
- Performance Focus (Programs that directly improve employee productivity)*
- Business Acumen (Knowledge of company business and industry)*
HO1
What % of your time is spent on Strategic/Other Functions? ___________%
Strategic Planning Process*
(*SHRM Learning Systems®: Module 1: Section 1-2)
OUR GOAL
Phase May be Should be
1. Formulation
Vision Mission Values
q q q
2. Development
SWOT External SWOT Internal LT Org. Objectives Strategies to Achieve
q q
q q q q
3. Implementation
Corporate (Key Perf Indicators) Unit Functional
q q q
q q q
4. Evaluation
Review Strategies Measure Performance Take corrective Actions
q q q
q q q
Leadership Roundtable
What’s Next for HR? (Nov. 2010)
Observation
Not much has changed
in 20 yrs
www.shrm.org/about/foundation/Pages/default.aspx
¡ Failure of HR to move beyond transactional* ¡ Ineffective, incompetent, costly; value sapping*
SHRM Survey (2004) • Only 7% saw HR as SBP was key trend • Almost 60% organizations outsourcing
some transactional functions - Payroll - Employee assistance/counseling - Staffing - Benefits administration
*Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
So…what’s left of
Traditional HR?
Corporations (1990’s - Current)
Administration
Internal Consultants
What must change?
Service Role
21st Century Companies/Corporations
Development of Strategic Business
PARTNERSHIPS
Business Partners
Strategic Business Partners?
Business Partners
Internal Consultants
HR
Administration
Sales, Marketing &
Public Relations
Production & Manufacturing
Information Technology
Executive Level
Legal
Finance & Accounting
Research & Development
STRATEGIC Business
PARTNERSHIPS
What changed?
Business PARTNERS
What’s the SAME? • Company • Departments • People • Product • Functions • Strategy
What’s the DIFFERENCE? • Strategic Focus/Goal • What we do • What we say
Strategy A Plan of Action
Strategic Focus
Majority of HR time/resources focused on optimizing workplace
performance in order to maximize results of organization.
-Robinson & Robinson
“Become a master of your profession and a student of
your business.” – Tom Kroeger
Work Environment Need/Solution
(WN/S)
Capability Needs (CN)
Performance Needs (PN)
Business Needs (BN)
©Partners in Change, Inc & SMART Performance Solutions
LEARN
LISTEN
HO1
…a student of your business.
Consultant: An expert in business solutions linked to ROI of client’s goals.
q THINK LT Goals; ST Strategies q LINK To Business Goals q ACT Develop Partnerships q MEASURE Use Business Metrics (ROI) q LEARN Business Acumen
LINK
Performance Needs (PN)
Business Needs (BN)
THINK
LINK
ACT MEASURE
Strategic Business Needs (SBN)
Work Environment Needs/Solutions (WN/
S)
Capability Needs (CN)
LEARN
LISTEN
©Partners in Change, Inc & SMART Performance
Solutions
G = Go for the SHOULD A = Analyze the IS P = Pin down the CAUSES S = Select the right SOLUTIONS
Opportunity to LISTEN, LEARN, & promote understanding & THINK, LINK, ACT, MEASURE
HO1
Through Partnerships/Business Acumen � HR Strategic Business Partner (Formal Responsibility)
¡ Access to other managers ¡ Access to more information at organizational level ¡ More opportunities to network throughout organization
� Department Strategic Business Partner (Informal Responsibility) ¡ Access to individual employees ¡ More time to build personal
relationships/trust ¡ More people focused
Become a master of your profession…
HR DIRECTOR SBP
Dept Mgr SBP
Dept Mgr SBP
Dept Mgr SBP
Dept SBP Dept SBP Dept SBP
EXECUTIVE SBP’s
DIRECTOR SBP
DIRECTOR SBP
DIRECTOR SBP
DIRECTOR SBP
TRAINING SBP
Employee Relations
SBP
§ Strategic Objective: Increase annual revenue by 10%
Strategy (Plan) § Increase revenue by 3% § Decrease operational expenses by 2% § Improve customer service by 5%
§ Improve efficiency/processes § Improve employee training § Improve recruiting and
retention processes
Client Need/Strategy
We are in the process of reducing operational expenses in our service centers.
Can you help us put together a communication program to help people understand why we are doing this?
*Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
§ Decrease annual operational expenses by 2%
ID of Needs
We are in the process of reducing operational expenses in our service centers (SBN).
Can you help us put together a communication program to help people understand why we are doing this? (CN/S)
*Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
We plan to increase revenue in the next year.
We must ensure our talent recruitment & retention processes are ready as we need everyone performing in an optimal manner to reach our goals.
*Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
Client Need/Strategy - Increase revenue by 3% - Improve efficiency/processes -Improve employee training -Improve recruiting and retention processes
ID of Needs We plan to increase revenue in the next year.
(SBN)
We must ensure our talent recruitment & retention processes are ready… (WN/S)
…as we need everyone performing in an optimal manner to reach our goals. (PN)
*Adapted from Strategic Business Partner: Aligning People Strategies with Business Goals by Robinson & Robinson.
Strategic Planning Process*
(*SHRM Learning Systems®: Module 1: Section 1-2)
OUR GOAL
Phase May be Should be
1. Formulation
Vision Mission Values
q q q
2. Development
SWOT External SWOT Internal LT Org. Objectives Strategies to Achieve
q
q q q q
3. Implementation
Corporate (Key Perf Indicators) Unit Functional
q q q
q q q
4. Evaluation
Review Strategies Measure Performance Take corrective Actions
q q q
q q q
To move from HR Business Partner to HR STRATEGIC Business Partner requires adding value
at the operational level to earn status at the executive level.
To get where we have never been, we have to do what we have never done
� What is definition for Strategic HR?
“The majority of HR’s time/resources are
focused on optimizing workplace performance in order to maximize results
of the organization.” - Robinson & Robinson
� What is the formula for “Ask the right questions right”?
G = Go for the SHOULD A = Ask for the IS P = Pin down CAUSES S = Select the right SOLUTIONS
� Give at least three actions that can be used to become a Strategic Business Partner
� External category � Internal category � Leadership category
� Name at least two Leadership Competencies
� Attitude/Motivation � Coaching � Culture � Leadership � Teambuilding � Values
THANK YOU FOR YOUR PARTICIPATION
Wanda