Managing HR to Leading HR
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Presented By: Mr Sharad Gangal, Executive Vice President - HR & IR & Admin and Member of the Executive Council Thermax Limited – Pune
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Managing HR to Leading HR
- 1. Managing HR to Leading HR Sharad Gangal – EVP HR, IR & Admin Date: 6th October 2012
- 2. Evolution of HR Value to Business = Complexity/Alignment of • Administration of • Administrative Absence, traini Focus • Created to ng, recruitmen • Compliance respond to t, compensatio • Traditional harshness in n Mind-set Industrial • State / Trade • Limited Scope Conditions Union of Activity Partnerships Human Strategic activities Labor Personal Welfare Resource Human Manager Mgmt Mgmt Resource • Administrator & Technical Expert • Business Partner • Focused on • Focus on Value Improved Added Activities Efficiency & • Proactive Effectiveness • Multidisciplinary • Compensation • Multifaceted linked to Roles productivity 1890 - 1913 1914 - 1939 1945 - 1979 1980 - 1990 2000 Onwards Industrial Revolution World Wars Globalization Human Resources
- 3. New Economy = New Strategic Agenda Challenges Organizations Are Experiencing • Redefinition of Sales Channels • Un-bundling & re- bundling of products, services & information • Increased Buyer Power • Increased Employee Power Human Resources
- 4. Imperatives for Human Resources Redefining • Prominent role in organizational design & managing effects of change Business Models • Communicating changes in the strategy Reducing Cycle • Help prepare organizations move faster and shorten the time to market Time • Salary adjustments to leadership development • Build a culture that embraces risk Fostering • Question what the culture should look like and how the organization Innovation transitions Securing • Understand what constitutes a compelling employment offer Talent • Build an employment brand that stands out in labor market Strategic • Integration of strategies and skills Partnering • Play a prominent role in identification of new partners and opportunities Redefining Role of • Ensures the organization‟s values remain both explicit and aligned with Corporate the demands and expectations of the customer Headquarters Human Resources
- 5. Changing Economy Demands Competitive Environment Competitive Environment • Gradual evolutionary • Frequent discontinuous change changes • Stability • Creative destruction • Clearly defined industry • Value chain in a flux boundaries • Competitive advantage NEW ECONOMY • Power from incumbency hard to sustain • Domestic markets • Global Markets THE PAST • Employee Loyalty • Employee free agency Business Imperative Business Imperative • Quality • Speed • Consistency & Control • Flexibility & agility • Scale economics • Digitation & unbundling • Mass customization • Strategic partnership • Customer led innovation • Customer intimacy • Workforce development • Technology led innovation • Risk Management • Organizational capabilities • Value chain dominance Human Resources
- 6. HR Priorities „Thought Leadership‟ to „Thought Partnership‟ Thought Leadership New Economy – HR As A Business Human Resources Role • Support critical business Human Resources Role The Past – HR As A Line Partner objectives • Serve company‟s customers • Sell traditional HR • Build organizational capabilities Interventions • Formulate business strategy Leader • Serve internal customers • Ensure value proposition • Build individual employee skills alignment • Execute business strategy • Develop guiding principles • Defined company culture • Develop policies and programs Measures of Effectiveness Measures of Effectiveness • Employee engagement & productivity • Employee satisfaction • External customer satisfaction • Internal customer satisfaction • HR activity levels • Staffing levels Thought Partnership Human Resources
- 7. Essentials for HR Transitioning Towards Being “Long Term Greedy” Delivering Results with Credible Activist Integrity, Sharing Information, Building Relationships of Trust, Doing HR with an Attitude Facilitating Change, Crafting Culture, Cultural Steward Valuing Culture, Personalized Culture Ensuring Today’s & Tomorrow’s Talent, Developing Talent, Shaping Talent Manager/ The Organization, Fostering Organizational Designer Communication, Designing Reward Systems Sustaining Strategic Agility, Strategy Architect Engaging Customers (Internal & External) Serving Value Chain, Interpreting Business Ally Social Context, Articulating Value Proposition, Leveraging Business Tech Operational Executor Implementing Workplace Policies, Advancing HR Technology Human Resources
- 8. Personal Credibility Impeccable to HR Human Resource Competency Study Study By Dave Ulrich & Wayne Brockbank “Personal Credibility rated as the most critical competency for today’s HR Professional” • Why: Develop relationship of trust with the management and instill confidence Important to Line Managers that HR Leaders are trustworthy, conscientious with sensitive information and offer valuable credible insight to the organizations' leadership Organizations are demanding greater value being added by the HR Profession as ambassadors for this competency Human Resources
- 9. HR Value Proposition Ulrich‟s Four – Role Model Future / Strategic Focus Gives a strategic advantage Strategic Partner Change Agent Aligning HR & Managing Business Strategy Transformation & Change Active role in setting strategic direction Effecting transformation & Processes Change People Administrative Employee Expert Champion Managing the Firm‟s Managing Employee‟s HR Infrastructure Contribution Process Optimization & Motivated & Competent Efficient Personnel Creates a lot of issues (Hygiene) Day to Day Operational Focus Human Resources
- 10. HR Function of the Future HR KEY HUMAN RESOURCE ROLES Developing & Applying Product/ Key Technologies Service Specialist Supports Energetically By • Developing a compelling vision and value proposition Installation & • Aligning the focus of its efforts on HR Customization of HR more strategic outcomes Generalist Products and • Re-negotiating their roles and Consulting to maximize relationships with operational Team Effectiveness leaders • Committing to major immediate competency development Alignment of HR Consulting, Products & HR Services with the Strategist Organization Strategy KEY HUMAN RESOURCE ROLES Human Resources
- 11. HR & Organizational Leadership Next Generation Workforce Traditional Workforce 2020 Security Flexibility Salary Prosperity Benefits Opportunities Promotion Ladder Career Navigation Job Description Work Portfolio Consent Based Decisions Contingency Based Decisions Work Life Balance Work Life Integration Job Offer Value Proposition Managing Coaching Developing Specific Skills Maximizing Potential Goals & Missions Statement Roles & Aspiration Statements Company & Industry Focus Market Transitions & Adjacencies Focus Multinational Globalization Human Resources
- 12. HR & Organizational Leadership Next Genre – Aligning Organizations & Workforce Globalization & rapidly evolving workforce redefines how HR thinks about competence, creativity, productivity & structuring of organizations: HR as a storyteller (using technology & media) Impacting 360˚ Creating a Buy-in for Gen Y, as they are not compliant Talent Management Integrated to Business Strategies HR Envisioning HR Envisioning Mobilizing for Capitalizing on Cultivating Speed & Collective Creative Leaders Flexibility Intelligence Organizational Leadership Organizational Leadership • Improve Operational Efficiency • Expand into New Markets / Geographies • Develop New Products / Service Offerings Human Resources
- 13. Next Genre HR Human Resources
- 14. 2020 – Three Worlds Study by PWC Human Resources
- 15. 2020 – Three Worlds People Management Characteristics “HR will continue to increase its alignment to the business, with greater accountability for delivering specific corporate objectives. This will result in a greater need for HR to quantify itself in respect of how we deliver against the bottom line. ...” Human Resources
- 16. Questions THANK YOU! Human Resources
Editor's Notes
- Changing Economy:Rapid advance of information technology-The potential applications for, and impact of, information technology haveincreased substantially in recent years.“E-engineering”—Information technology is being applied by many corporations as a wayto radically redefine work processes and to transform relationships with both suppliers andcustomers. This e-engineering is resulting in increasing rates of productivity growth andlower operating costs for many corporations.Deregulation-As government restrictions to free trade fall, competition intensifies. For somecorporations, deregulation translates into new business opportunities. For others, the moveto free trade results in new competitive threats.Globalization—As transaction costs decline, and as regulatory barriers fall to the pressure ofmarket economics, the potential market for any one company’s goods or services increasessubstantially. Again, the result is a general increase in the level of competition.Rise of the Internet and e-commerce—The Internet is already forcing many corporations to reexaminetheir business models and their corporation’s place within their industry’s value chain.Challenges Organisations are facing:Redefinition of sales channels—The Internet and e-commerce are making it easier forcorporations that are “upstream” in an industry value chain (e.g., manufacturers andsuppliers) to sell directly to those farther “downstream” (e.g., end users), as opposed toselling through middlemen. The Internet is also facilitating the emergence of myriad“virtual” competitors now competing directly against “real world” incumbents. Both retailand business-to-business sales channels are being affected.Unbundling and rebundling of products, services and information—The Internet isleading to the wholesale redefinition of many value chains and industries. In some cases (forexample, the stock brokering industry), the information that was once considered integral tothe traditional service offering is being cleaved off as a separate product offering. In othercases, the ability to aggregate information is giving rise to new services (for example, on-linemortgage brokers). Nearly every industry will be affected in some way by the enhancedavailability of information that the Web brings.Increased buyer power—The Internet leads to lower “search costs” for a buyer. It isbecoming far easier to identify potential suppliers and then to compare their prices. As aresult, suppliers’ profit margins will likely decline. Given that nearly all corporations will be abuyer in some transactions and a seller in others, the net effect of enhanced buyer power to acorporation’s bottom line will depend on a number of factors. Based on these changingbuyer–seller dynamics, most corporations now face the need to redefine their relationshipswith both their suppliers and their customers.Increased employee power—In much the same way that the Internet results in increasedbuyer power for purchasers of products or services, employees are gaining greater power inthe employment relationship as a result of increased availability of information aboutemployment opportunities. Employees now have instant access to nearly unlimited jobopenings from everywhere around the globe. Employees can also easily make themselves“visible” to potential employers through Web-based resources—hence the notion of the“effortless job search.” Overall, increased employee power invariably will lead to highercompensation levels and greater employee mobility.
- How exactly can HR Practitioners go about developing this critical competency? It goes without saying that they need to promise and deliver results, build effective relationships and establish a reliable track record. In addition, they must have effective written and verbal communication skills. Central to the development of personal credibility in order to meet the challenges of today’s business world, is the vital element of self-knowledge and awareness on the part of the HR Practitioner.Organisations are demanding greater value being added by the HR profession. With special attention to developing credibility, HR Practitioner’s will have an opportunity to respond to these demands and make a significant impact on organisational performance and the realisation of value from one of their most critical and intangible assets, their people.