2nd ANNUAL PROVINCIAL PUBLIC SECTOR HUMAN RESOURCES MANAGEMENT CONVENTION: 19-21 September 2007

1. 2nd ANNUAL PROVINCIAL PUBLIC SECTOR HUMAN RESOURCES MANAGEMENT CONVENTION: 19-21 September 2007

2. Theme: Transforming Human Resources Management in the Public Sector: From transactional management to strategic boardroom partnerships.

3. What the client Needed

4. Human Resources Accountability Presented by Dr. Pat Naves

5. MY INHERITANCE I CANNOT DISOWN, MY FUTURE I CAN CREATE Dr. P. Naves

6. What is HR? • HR is not on the Agenda of the CEO but HR is the Agenda, Jeff Immet of General Electric (Fortune 2004) • Therefore the management of people cannot be the accountability of HR (alone) • It is, and should be treated as the number one priority of the CEO and therefore of line managers if the company has to compete effectively in their respective industry • If the old adage that PEOPLE ARE THE MOST IMPORTANT ASSET is anything to go by, then the Human Resources function is key to organisational performance

7. The Role Of HR • The aim of HR in the new economy is to enable the organisation to create value through people, practices and processes, bearing in mind that people are the competitive edge of any organisation. • Within this context the defined role of HR must be seen as providing Human Resources products, services and solutions that will enable the organisation to achieve its set strategic objectives • Human Resources practitioners must operate as people Champions and prove their value (also in quantitative terms) to the organisation

8. HR Accountability defined through the HR roles D. Ulrich

9. For HR to be viewed as a valued partner in the business, it must demonstrate firstly that human performance management in the organisation is integrated with business processes, and secondly, that its activities improve organisational performance and contribute to the achievement of organisational goals. Human performance benchmarking provides the measurement tools to understand the impact of people Can HR add value to the organisation?

10. HR FOCUS Organisational strategy Organisational Challenges Human Capital Implications HR Focus Areas relevant to addressing specific organisational set goals Benchmarking Compare, Align and Integrate Measure

11. Building Blocks for SABC Strategy • Corporate Goals • Content, • Stakeholders • Finance • People • Technology • Governance and • Performance Monitoring • Organisational Values • Conversations & Partnerships • Building a Common Future • Restoring Dignity • Strategic Pillars • People • Operations • Funding • Technology Example Informed by vision of Broadcasting for Total Citizen Empowerment Inform the key goals and objectives within the current performance management framework

12. Human capacity to implement and exploit opportunities may be corporation’s biggest challenge, and the SABC must develop cadre of leadership, management and technical capacity in a structured way that is measured and monitored (this includes investing in industry development)

13. HR implications of the strategy Provide Human Resources Management Leadership through; • Ensuring that the SABC mandate and license conditions are upheld, through people • Ensuring that the Values of the organisation are entrenched and integrated in the day to day business activities therefore enhancing the culture of the SABC as a preferred employer • Ensuring that people practices, processes, systems empowers all Citizens, our priority being our first citizens ( our employees)

14. 1. 1. Attraction Attraction 6. Exit 6. Exit Of skills Of skills 5. 5. Maintenance and Maintenance and 2. Performance 2. Performance Nurturing Nurturing 4. Development 4. Development 3. 3. Rewards Rewards Human Capital Performance framework • Climate and culture • Employment Relations including E.E. • Leadership development • Transformation The SABC example

15. HR accountability • Begins with understanding business strategy and the direction the business is taking in order to definer the HR role and accountability In MY PLACE as HR LEADER HR departments need to have strategies that define the specific outcomes they deliver to the business, together with products and services that will be delivered to accomplish that strategy. Dave Ulrich (1998)

16. HR accountability • This can be done in three ways, namely: • Communicate to the organisation that the soft staff matters and issues, such as culture change and intellectual capital, are critical to business success. • Explicitly define the deliverables from HR and hold HR accountable for results. Senior managers must clearly state what they expect from HR. • Develop and continuously upgrade the skills of HR professionals and practitionersThis will enable them to become strategic partners. They need to work from a base of confidence and earn what too often they do not get “RESPECT” • This is a tall order

17. HR Accountability: HR system alignment • HR system alignment means assessing how well the HR system meets the requirements of the organisation’s strategic implementation system. • Another component of the HR scorecard is to gauge the alignment of the HR system with drivers of the organisation strategy implementation process. • Choosing the correct alignment starts with identifying HR deliverables required to create value in the organisation, which in turn indicates the specifics of the HR system that must reinforce one another in order to produce those deliverables.

18. HR Accountability: The high performance work system (HPWS) • HR’s strategic influence rests on a foundation of high performing * HR policies defining the framework within which the organisation decides to manage its people, * processeswhich includes well defined guidelines and operational procedures and * practices which defines the culture and climate of the organisation. • The HPWS works through each HR function from a macro level and highlights the performance orientation of each activity. • HR managers need a set of measures that keep the performance dimension of HR activities at the forefront of their attention. • These measures can be represented on the HR scorecard as simple toggles, indicating the level of performance achieved in quantifiable terms.

19. HR Accountability cont. • In this way, specific alignment measures will be linked directly to specific deliverables in the scorecard. • In this instance the HR manager focuses directly on the human capital aspects of those drivers. • Alignment measures require a combination of professional understanding of HR with a thorough knowledge of the value creating process of the organisation. Only achievable through a partnership between HR and Line management

20. HR Accountability: Identifying HR efficiency measures • HR efficiency measures reflect the extent to which the HR function can help the rest of the organisation to generate the needed revenue and profits. • They focus on those ”do-ables” that ensure that service delivery is done in a cost-effective manner. • HR must have access to a wide range of benchmarks and cost standards by which its efficiency can be measured. • The costs need to be separated in accordance with unique investments that create strategic value for the organisation. • The whole idea of the HR scorecard is to ensure that there is a balance between HR costs and the value that HR creates.

21. HR deliverables disciplined by attention to both benefit and cost Rate of Return HR ‘do-ables’ driven by cost control Undisciplined Attention to value creation that misjudges benefits/ ignores efficiency Operational Strategic Balancing cost control and value creation

22. HR Accountability: Balancing cost control and Value creation through people strategies • Balancing cost control and value creation measures helps HR managers to avoid the tendency to focus on the benefits of HR’s strategic efforts while ignoring the costs of those benefits. • This balancing act forms the very basis of the interface between the Balanced Scorecard and the HR scorecard.

23. Balancing it all out to create value Business imperatives People as Human Resources Organisational Performance Legislative Requirements

24. HR FOCUS Organisational strategy Organisational Challenges Human Capital Implications HR Focus Areas relevant to addressing specific organisational set goals Benchmarking Compare, Align and Integrate Measure

25. 1. 1. Attraction Attraction 6. Exit 6. Exit Of skills Of skills 5. 5. Maintenance and Maintenance and 2. Performance 2. Performance Nurturing Nurturing 4. Development 4. Development 3. 3. Rewards Rewards Human Capital Performance framework • Climate and culture • Employment Relations including E.E. • Leadership development • Transformation The SABC example

26. HR Talent Management • As we knock at the door of the CEO or of business, what do we have to offer? • How do we position ourselves and how convincing are we? • How do we define our space • How do we instill confidence and trust in the boardroom that we are THE HR LEADER OF THE FUTURE? • What are some of the HR key competencies?

27. Some of the emerging required HR competencies • Ability to manage complexity • Ability to enable parties to build and foster long lasting relationships • Ability to understand and manage organisational politics • Ability to integrate processes, systems, etc.

28. HR Leadership in the future • HR has become complex • HR has become more demanding • HR has become an imperative • It needs activists • It needs more than passion • It needs good knowledge and information in order to empower others • HR people need support, they need to be empowered, their skills need to be appreciated.