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DANCING WITH THE BUSINESS

DANCING WITH THE BUSINESS. How HR Creates Value. NORM SMALLWOOD.

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DANCING WITH THE BUSINESS

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  1. DANCING WITH THE BUSINESS How HR Creates Value

  2. NORM SMALLWOOD Norm is a recognized authority in developing businesses and their leaders to deliver results and increase value. His current work relates to increasing business value by building organization, leadership, and people capabilities that measurably impact market value. nsmallwood@rbl.net www.rbl.net

  3. AshlyDelGrosso: Dancing with the Stars

  4. GOALS FOR THIS WORKSHOP THINK: About how HR dances with business (contributes to business value and the HR competencies required to do that) BEHAVE: Be able to do things that make a difference HAVE FUN: Enjoy the experience together by learning together

  5. HR value is achieved by starting from the Not from the Inside-Out.

  6. Value is in eyes of the receiver of the gift, not the provider of the gift. HR value is not from within HR but in eyes of our stakeholders

  7. (outside) (inside) Benefits Investors Training & Development Analysts Customers Compensation Community Org. Design & Development Business Environment HR Actions (External Stakeholders) (Employees)

  8. In order for HR to be Outside-In,we need a roadmap to fill in the gap HR Actions Business Environment (Customers & Investors)

  9. Strategy answers the question: Why do our customers buy from us instead of our competitors? Quality Speed Service Price Innovation Business Environment (Target Customers)

  10. Match the business to its dominant customer value proposition. Quality Speed Service Price Innovation

  11. Quick Review Firm Brand Identity: The identity of our firm in the eyes of our target customers. Strategy: Why our customers buy from us instead of our competitors. HR Actions Business Environment (Customers & Investors)

  12. Firm Brand Identity describes the identity of our firm in the eyes of our target customers. What are three words we want these target customers to say about us? Quality Speed Price One of the three words is the customer value proposition, then add two words or phrases to describe the desired customer experience. Service Business Environment Customers & Investors Price Innovation CHEAP 1. 2. FUN 3. ON-TIME

  13. Sales and marketing efforts promote the firm brand identity to customers. A high performing culture exists when this identity is made real to customers through employee actions. CHEAP FUN ON-TIME Make identity real to Service Service HIGH PERFORMANCE CULTURE Customer experience Employee actions Customers Employees

  14. A Quick Review Firm Brand Identity: The identity of our firm in the eyes of our target customers. Capabilities: Now we need strong technical and organizational capabilities to deliver the promised customer experience. Strategy: Why our customers buy from us instead of our competitors. HR Actions Business Environment (Customers & Investors)

  15. There are 12 common organization capabilities. These capabilities are the bridge between what the business needs and HR actions. HR collaborates with business leaders to target and build capabilities with highest impact on business success. People Capabilities Leadership Talent Needed by all businesses Integrating Capabilities Accountability Collaboration Learning Strategic Alignment Social Responsibility Customer Capabilities Innovation Efficiency Speed CustomerConnectivity Quality Mindset

  16. Leadership brand is outside-in. It increases customer and investor confidence in future results. It moves the stock price. Outside Leadership Systems Competent Leaders Leadership Brand Celebrity Leader Inside Leader Leadership

  17. Leadership Brandcapability makes the firm brand identity real to customers. Leaders at every level ensure that customers receive the desired brand identity experience because of employees who live the high performance culture. CHEAP FUN ON-TIME Leadership Brand Make Identity real to Service Service HIGH PERFORMANCE CULTURE Customer experience Employee actions

  18. HR must also build talent capability throughout entire organization. Talent Competence Commitment Contribution • COMPETENCE • The right person, in the right place, at the right time, with the right skills • Buy • Build • Bounce • Borrow • Boost • BInd • COMMITMENT • Enact an employee value proposition • What do I get? • What do I give? • CONTRIBUTION • Create meaning at work • Identity • Purpose • Relationships • Work environment • Work itself • Learning/resilience • Civility

  19. High performing HR goes beyond talent and leadership to build two additional organization capabilities aimed at building a unique culture targeted to the business. People Capabilities Leadership Talent Integrating Capabilities 1 1 Accountability Collaboration Learning Strategic Alignment Social Responsibility Integrating Capability Customer Capability Customer Capabilities Innovation Efficiency Speed CustomerConnectivity Quality Mindset

  20. First: • Target and build the customer capability that corresponds to your customer value proposition. Efficiency People Capabilities Quality Leadership Talent Price Price Speed Integrating Capabilities 1 Customer Value Proposition Service Accountability Collaboration Learning Strategic Alignment Social Responsibility Customer Capability Customer Value Proposition (why our customers buy from us) Customer Capabilities Innovation Innovation Efficiency Speed CustomerConnectivity Quality Mindset

  21. Second: • Choose an organization capability from the Integrating Capabilities. People Capabilities Leadership Talent Collaboration Integrating Capabilities 1 Accountability Collaboration Learning Strategic Alignment Social Responsibility Integrating Capability Customer Capabilities Innovation Efficiency Speed CustomerConnectivity Quality Mindset

  22. Hypothetical Example: Southwest Airlines Leadership Talent Quality Accountability Collaboration Learning Strategic Alignment Social Responsibility Speed One One Both People Capabilities Service Customer Capability Integrating Capability Innovation Efficiency Speed CustomerConnectivity Quality Mindset Price Innovation

  23. Hypothetical Example: Southwest Airlines Leadership Talent Quality Accountability Collaboration Learning Strategic Alignment Social Responsibility • Southwest Airlines: • Build a high-performing culture of efficiency and collaboration supported by strong talent and leadership. Speed Innovation One One Both People Capabilities Service Customer Capability Integrating Capability Efficiency Speed CustomerConnectivity Quality Mindset Innovation Customer Value Proposition Price

  24. High performance culture at SWA: collaborating with customers to ensure “fun” experience around firm brand identity

  25. Roadmap Capabilities: What HR actions are needed to build these capabilities? Strategy: Customer Value Proposition: Service Service HIGH PERFORMANCE CULTURE Efficiency Collaboration Talent Leadership Brand • Business Environment: • Business traveler is dominant logic • High competition • Low margin • Regulated Firm Brand Identity: CHEAP FUN ON-TIME Low Price

  26. HR actions must shift from internally focused HR activities to building and implementing targeted organization capabilities. To: Organization Capabilities (Deliverables) Leadership Talent Efficiency Collaboration Internally Focused HR Activities • Targeted • Organization • Capabilities From:HRActivities

  27. With a clear view to targeted capabilities, HR must redefine each HR activity and then integrate them to build each targeted organization capability Semi-annual workout sessions to identify ways to increase simplicity and take out costs. Give the most frequent flyers a coupon to give out to employees when experience a great flight. Have flight crew candidates tell a joke, sing a song, demonstrate their ability to lead a fun experience with others. Pay on-time takeoff bonus to flight crew and mechanics team. To: Organization Capabilities (Deliverables) Leadership Talent Efficiency Collaboration HR Actions HR Actions HR Actions HR Actions From:HRActivities

  28. High-performing HR is more than talent and leadership. HR Action Challenge: Three 3s for each of the 12 capabilities. 3 hours: 3 months: 3 outcomes: What can I help my management team do in 3 hours to make progress? What specific things will we accomplish in 3 months (who will do what, when, where)? What are three specific outcomes we will deliver in 3 months? Leadership Talent Accountability Collaboration Learning Strategic Alignment Social Responsibility Innovation Efficiency Speed CustomerConnectivity Quality Mindset

  29. HR Competencies: It’s not enough to know that we should build targeted capabilities; HR must invest in itself to dance better with the business. HR Actions

  30. Every four years for the last 25 years, we have worked with regional HR associations across the world to identify what these competencies are. National HRD India IAE Latin America IPM South Africa 51job China AHRI Australia ASHRM Middle East HR Norway

  31. High-performing HR professionals must have proficiency in Six Competency Domains to dance with their business.

  32. High-performing HR professionals must have proficiency in Six Competency Domains to dance with their business. Credible Activist: has personal credibility with the business and initiates action. Strategic Positioner: knows the market context (customers, investors, community) and interprets to frame HR impact. Capability Builder: collaborates with business to audit, target, and build organization capabilities. Change Champion: knows how to manage and sustain individual, project, and enterprise change efforts. HR Innovator & Integrator: takes a systemic approach to integrate and align HR practices. Technology Proponent: utilizes technology to increase efficiency, build communities, and influence stakeholders.

  33. Roadmap HR Competencies: Capabilities: HR Actions: Service Service HIGH PERFORMANCE CULTURE Strategy: Efficiency Collaboration Talent Leadership Brand • Business Environment: • Business traveler is dominant logic CHEAP FUN ON-TIME Firm Brand Identity: Low Price

  34. For more information about any of the material covered in this session, please contact Norm Smallwood by email or visit the web: nsmallwood@rbl.net www.rbl.net

  35. What We Do LEADERSHIP We’ve talked to senior executives all over the world in a variety of industries and heard four themes about how to develop great leaders: Focus on your core business strategy. Ensure execution at every level. Strengthen your performance culture. Invest in and engage your workforce. These messages align with our work about what effective leaders must do in any market—focus attention, deliver results, build capabilities for the future, and connect employees to customers to deliver the right experience. When leaders get these things done well, organizations will emerge stronger than competitors. The RBL Group has taken an outside-in, value-oriented business approach for over ten years about how leaders can deliver the right results the right way. STRATEGIC HR In 1989, we asked the question, “How does HR add value to the businesses they support?” After twenty years of research, developing a global database of over 40,000 professionals, and practical implementation with companies from around the globe, we’ve identified, tried, and tested principles HR leaders should follow to adapt their organizations to deliver value in any economy. Our approach to transforming HR produces the following benefits: Increased HR effectiveness AND decreased costs. Improved HR competence AND contribution. Delivery of strategic organizational capabilities AND leveraged talent.

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