13. Human Capital in Corporations “An organisation’s ability to learm, and to translate that learning into action rapidly, is the ultimate competitive advantage Jack Welch,, GE
14. How has the Human Resources Management Profession responded?
15. HR Management Role? ‘Nestling warm and sloppy in your company, like the asp in Cleopatra’s bosom, is a department whose employees spend 80% of their time on routine administrative tasks ‘I don’t mean improve HR, I mean abolish it. Deep six it … give it the old heave-ho’ Tom Stewart, Fortune, January 1996
16. HR Management Role? ‘HR managers have the chance to make a gargantuan impact on the business, but most of them aren’t making the change fast enough’ Dick Randazzo, Chief Financial Officer, 1996 ‘There is an enormous lack of confidence among UK personnel people with a great deal of soul searching going on. There’s uncertainty over what personnel work should be about’ Chris Brewster, The Guardian, 1995
17. HR Management Role? ‘This is a great time for those interested in human resources. Human resource issues have become central to business deliberations, surfacing in boardrooms where executives plan and in conference rooms where managers act’ Dave Ulrich, Delivering Results, 1998
18. HR Management Role ‘Create an entirely new role and agenda for the field that focuses it not on traditional HR activities such as staffing and compensation, but on outcomes. HR should not be defined by what it does, but what it delivers — results that enrich the organization’s value to customers, investors and employees’ Dave Ulrich, Harvard Business Review, 1998
21. Who is Rand Water? Established 1903 Governed by own Act until 1998 Financially independent Supply more than 3 million tons of water per day to 10 million people in an an area of 16 800 km2 Employ 3 300 highly unionised staff Five main sites
22. Water Utilities:Becoming Relevant in the 1990s From bulk potable water wholesaler to water services provider (Water Services Act) Supplying those in need Water cycle: water and sanitation Organisation in tune with its community and its needs Affirmative action and equity Customer focus A global competitor Facing international competition Competing on cost & service
23. Organisational Imperatives Attract, develop, retain skills Become a preferred employer Create a shared mind-set Social transformation Diversity, equity Business tranformation Performance culture, customer focus Transformational leadership & change management skills Develop partnerships with all stakeholders
24. Organisational Imperatives FROM Top-down directive management style Inward focused technical orientation Culture based on long service, stability, continuity White male dominated demographic profile Skills in line with wholesale water operator TO Participative style & systems Customer focused orientation Culture of performance & continuous improvement Demographic profile in line with communities served New, wider range of competencies
25. Reorganising HR in Rand Water Empowering line management Line ownership of people management Restructuring the HR function Decentralised Breakdown of functionalism Staff changes De-bureaucratising HR Vision linked to corporate strategy Project orientation
53. Participative Structures Stakeholders’ Forum Steering Committee Monitoring Groups Task Groups Plant Level Forums Task Groups Task Groups Workplace Meetings Workplace Meetings Workplace Meetings
54. Management Structure Chief Executive Divisional Policy Formulation Bargaining Structure Participative Structure Dispute Resolution Committee Stakeholders’ Forum Steering Committee Central Bargaining Forum Monitoring Groups Task Groups Departmental Working Groups Working Groups Plant Level Forums Plant Task Groups Task Groups Supervisory Workplace Meetings Workplace Meetings Workplace Meetings
61. Social Transformation Transformation Action Plan Transformation Committee of Board Values Exercise Change Management Programme Employment Enhancement Programme HIV/AIDS Programme Employment Equity Plan and Report
62. Leadership Development Ladder of Learning ABET, Apprenticeship, Technical skills Supervisory Development Management Development Executive Development Leadership Programme Corporate University Partnership with GIMT/Henley, INSEAD Intermediate Management Development Programme Advanced Management Development Programme Executive Development Programme
63. Changing HR Role BUSINESS PARTNER = Strategic Partner + Administrative Expert + Employee Champion + Change Agent
64. Human Resources Role Future/Strategic Focus Processes “Hard” People “Soft” Day-to-day/Operational Focus Strategic Partner Change Agent Employee Champion Administrator
66. Competencies of the HR Professional Understanding of the business (12%) Ability to manage change (24%) Ability to manage culture (19%) Personal credibility (29%) Human resource practices (16%)
67. Understanding the business Ticket of admission to business discussions Critical link between Business & HR strategy Business understanding required at all levels Information, participation, awareness
68. Ability to Manage Change HR often abdicates OD role Rand Water’s HR Function has led change management Participation, Performance Management, Values, Ethics Competence gained through experience
69. Ability to Manage Culture Traditional HR took little responsibility for culture Rand Water HR saw culture change as key goal Performance, customer focus, diversity But selection & development still focused on job competencies, not attitudes & values
70. Human Resource Practices Traditional practices Still to be mastered PLUS other competencies Benchmarking Doables vs deliverables Communicate doables rather than deliverables
71. HR Doables vs. Deliverables Doables Staffing Training Compensation Benefits Communication Employee relations Career development Deliverables Executing strategy Building an efficient infrastructure Increasing employee commitment and capability Creating a renewed organisation DAVE ULRICH
72. Personal Credibility Ulrich: Credibility central to HR success HR professionals must: Live organisational values Contribute widely, actively Demonstrate ‘attitude’ Ongoing challenge to Rand Water HR History of ‘what can’t be done’ Line seen as transgressors of policy, values HR needs image as solution provider
73. Externally Recognised HR Achievements Performance management system PCP and Labour relations Recruitment and selection process Huge applicant demand Ladder of learning, corporate university Employee self service, intranet Employer image, progressive company awards EEP, HIV/AIDS programme
74. Achievements: Deliverables Despite 92% unionisation & adversarial labour past, labour peace achieved Essential services agreement Through participation, employee commitment to strategic initiatives Significant social transformation Business expansion Services to communities Services to local authorities New business opportunities
75. New Challenges Facing Water Utilities Local authorities vs water boards Legislation Perception Negative perceptions of water boards Apartheid era Fat cats Public-private partnerships Efficiency Finance Decline in water sales Increased tariff
76. Human Resource Implications Stronger focus on performance and productivity Talent management is key Retention Succession planning Development Customer management critical Entrepreneurial skills Culture change Change management & strategic leadership still vital
77. Special Current HR Challenges Greater switch from DOABLES to DELIVERABLES Focusing on MEASUREMENT Creating greater separation between STRATEGIC and ADMINISTRATIVE HR Management Winning the hearts and minds of all employees
