DIRK STOLTENBERG

November 24, 2014 | Slide 1November 24, 2014 | Slide 1

EXCELLENCE – LEADERSHIP – ART

Dirk Stoltenberg, Global HRM

This document provides an outline of a presentation.

It is incomplete without the accompanying commentary

STRATEGIC AGILITY @ HR




Companies scoring high in

agility related routines

have higher

levels of

Return

On

Assets

Source: Center of Effective Organizations, University of Southern California



© ABB Group

November 24,

2014 | Slide 6

Don‘t sing the same song, instead invite

people to think

Questions open

doors, answers

close them

Arm people with

most competitive

weapon of our times: Knowledge



https://www.youtube.com/watch?v=34Ta1UFRPUk

https://www.youtube.com/watch?v=34Ta1UFRPUk


BUSINESS MODEL INDICATORS


BUSINESS MODEL INDICATORS


Changing nature of work

Changing needs of internal clients

Changing nature of the consumer

Changing nature of B2B customers

Changing impact of information

HR, SO WHAT?


ALMOST 20YRS OF HR SHARED SERVICES...

...acknowledge for:

• More efficiency, reduced cost– Sure!

• Improved Customer Service – Maybe.

• Fewer administrative burden– For whom?

https://www.youtube.com/watch?v=13Maj2ODrXA

https://www.youtube.com/watch?v=13Maj2ODrXA


Well defined and standardized processes enhance operational efficiencies and cost-savings.

Processes

1%

32%

0%

20%

40%

Non-standardizedprocesses

Standardizedprocesses across

all locations

Impact of Process Standardization on Cost-Savings

Net

Co

st-S

avin

gs

Source: Shared Services Roundtable

People

High turnover and dis-engagement of staff reduce productivity, negatively impact customer service, and increase hiring costs.

Annual Turnover Rates

Med

ian

Tu

rno

ver

Rat

e 15.2%

9.9%

0%

10%

20%

Shared ServicesEmployees

All CorporateEmployees

Source: CLC Human Resources

35%

18%

14% 13%

0%

20%

40%

Non-integrated technology and data sets reduce HR shared services quality & efficiency.

Technology

Top HR Service Delivery Issues

Per

cen

tage

of

Org

aniz

atio

ns

Streamlining Processes& Systems

Upgrading HR Systems

Data Accuracy

Integrating

Systems

Source: Towers Watson


A) HR Operations

• 25 HR Centers

• CoE included

• 900 Staff

• REV/COST RATIO 0,46

• VARIATION APPRECIATED

• CALIBRATION

• BUSINESS REVIEW SCORE

• PERFORMANCE

• NET PROMOTER SCORE

• COST/REVENUE RATIO


A) HR Operations


B)


C)


C)


D)


STRATEGIZE DYNAMICALLY

PERCEIVE CHANGE

TEST & EXPERIMENT

IMPLEMENT THE CHANGE

BE AGILE:


Distinct but complementary capabilities

Strategize dynamically

Shared purpose Purpose other than profit & growth and business model areknown. Values embedded drivebehavior on a daily basis

Change-friendlyidentity

Sense of „who we are“ and„What inspires us“. Strategyencourages the organization tochange

Robust strategicintend

Current strategy is relevant in and concruent to the actualmarket conditions. Held flexible enough to change on shortnotice

ROUTINES OF AGILITY (1)

Perceive change

Sensing People are keen to explore thefuture deeply. Many peoplemaintain continuous contact withparts of the businessenvironment

Communicating Unfiltered information from theenvironment goes rapidly todecision makers. Communication goes seamless between top down & bottom up.

Interpreting Information gets evaluatedagainst firm‘s identity, intent, business model, and risktolerance

Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company


Distinct but complementary capabilities

Test & experiment

Slack in resources Capable resources (people, money, time, tools) areavailable and can be readilydeployed to experiment withnew ideas

Risk Management Experiments are bounded byagree-upon criteria for judgingsuccess and failure. The possibility of failure is accepted, as a vehicle for learning

Learning Experience with runningexperiments is captured andapplied with each „new round“, so that the company‘scapabilities are continuouslyimproved

ROUTINES OF AGILITY (2)

Implement the change

Management andorganizationalautonomy

Executives delegate sufficientauthority to line and businessmanagers o that the companycan execute changes withsuccess. There‘s no secondguessing from headquarters but alignment with basic strategicobjectives

Embeddedchange capability

The pragmatic ability to changecollective habits, practices, andperspectives is embedded in lineoperations, not isolated in staffgroups

Performancemanagement

Clear, unambiguous, acceptedperformance measures andtargets are based on businessmodel drivers with rewards thatmatters

Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company


Watch the Samsung case@ https://www.youtube.com/watch?v=yFzYqEiV5lI

https://www.youtube.com/watch?v=yFzYqEiV5lI




Agile organizations need agile people....so, answer yourself this questions:

How agile are you?

Are you changing before you have to?


© ABB Group

November 24,

2014 | Slide

27

Education

DIRK STOLTENBERG