ITU Regional Workshop on “Strategic HR Management ” Cairo Egypt 13 -17 April 2008

1. Transforming HR: Global Trends and Emerging Practices ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13 -17 April 2008 Lecture 2

2. HR as Change Manager • HR as change agent in close cooperation (being a part of the solution and not the problem) • Identifying behaviors and values that support change in line with new corporate goals and challenges meeting market and owners requirement • Motivate, Implementing new rules and procedures that reinforce and reward desired behaviors • Implementing effective communication strategies to influence acceptance of change, and build a new culture in the organisation

3. HR as Change Manager • Driving Cultural and Behavioral Change in the organisation was found to be the second Top HR Challenge by respondents to a Mercer Survey • HR is responsible for creating an environment where people want to come to work, contribute while they are there, and stay long enough to make a difference. • The Challenge for organisations, be they commercial, or regulatory, is to become an employer of choice.Establishing an Employer of choice Status is HR’s responsibility. Implementing new rules and procedures that reinforce and reward desired behaviors • HR must help create a Corporate culture that is the dramatic force behind being employer of choice.

4. Discuss Successful Change • What are the desired behaviours • What demands to become the employer of choice • How to combine these • Exemplify

5. Leadership Redefine leadership, and demand it of every employee. Role of Strategic HR Communication Make sure that your line managers think effective communication. Diversity Move your organization beyond “intellectual diversity.” Succession Planning Build your leadership pipeline. Employee Involvement Capture a bigger portion of the employee mindshare. Measurement Focus on meaningful Measures KPI. PRIORITIES FOR HR EXECUTIVES OVER THE NEXT YEARS Capacity building Ensure your organizational capacity exceeds the rate of change. Employment Branding Create a brand for your organization in the labour market.

6. The Mercer Transformation Study, 2006 How HR sees itself vis a vis the business

7. The Top Human Capital Challenges % ofParticipants

8. The Top Human Capital Challenges % ofParticipants

9. The Top Human Capital Challenges The Top Three HR Challenges, show that transformation is clearly on the Agenda of HR Executives in Europe

10. New challenges for HR

11. New challenges for HR

12. New challenges for HR

13. Observation • The major challenges for HR are evidently linked to transformational issues and human capital strategy • Matters of processes, technology and administration are becoming less and less of a challenge to HR • The verdict? HR is moving up the business value chain

14. What HR functions will matter in the future?

15. What HR functions will matter in the future? Function

16. Primary Drivers Of HR Transformation

17. Primary Drivers Of HR Transformation

18. HR as a Strategic Partner What Convinces you that HR is a Strategic Partner? % ofParticipants

19. HR as a Strategic Partner What Convinces you that HR is a Strategic Partner? % ofParticipants

20. Role of HR • Understanding Business and driving Change are coming up as top Symbols of a partner role for HR. • There is a clear set of Expectations of a different role for HR within the New Environment (include sustainability). • But what exactly does HR do?

21. Where does HR spends ITS Time?

22. Where does HR spends ITS Time?

23. Where does HR spends ITS Time? • So 40% of HR Time is still spent on Transactional and Compliance related activities, while only 15% time spent on strategic partnering.

24. Challenges for HR • HR still very strong in its traditional functional areas and has adequate Skills here. • The biggest Barrier to HR playing the new role is the Skills Barrier (not business and strategy related). • But needs to acquire a new set of competencies to be able to adequately play the Business partner role.

25. New Skills/Competencies Required • Ability to Improve Customer Service (care) • Process and Manage Projects (efficiently used) • Technology Deployment (tech change) • Business Understanding (survival-sustainable) • Financial Understanding (Wacc)

26. Strong Skills in the HR (History)

27. Skills that are weak/very weak

28. Skills that are weak/very weak

29. Critical issues • Where is your organization, is change necessary or not? • Who is your competitor ? • Do your staff fear changes ? • Why do you have the best knowledge – and do not need to change ? • What is the worst thing that can happen to your staff • Be realistic and honest – values (transperency)