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HR Innovation: Mia Vanstraelen
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Presentation by Vanstraelen mia during the 8th editon of Vlerick HR-day 2011.
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HR Innovation: Mia Vanstraelen
1.
How does
HR build in innovation into the company strategy ? Ir. Mia Vanstraelen Vlerick HR day June 8th 2011 based on IBM’s Oct 2010 CHRO Study, mia.vanstraelen@be.ibm.com © 2010 IBM Corporation
2.
Common wisdom on
innovation in a nutshell … All growth driven strategies today require innovation; sustainability and CSR are now on the innovation agenda Type of Innovation: – Sustained innovation, or incremental innovation… along the lines of continuous innovation and improvements – Disruptive or spectacular innovation in products, services, business models Business leaders and their strategies must drive innovative projects; – Leadership is required to break out of the innovation trap Collaboration, collective intelligence is source of innovation, IT is the tool, essential and pivotal; creative usage of IT creates new opportunities Innovation is THE Source of longterm growth; innovation requires: – Balance between creativity and discipline – An Innovation Style in each company – Innovation crosses the whole value chain – Innovation works in dimensions: individual level, on corporate level, or at eco-system-level The term OPEN innovation means open to ideas; it also means innovation involving clients and suppliers, all members of the eco- system, involves high uses of technology and IP, requires short learning curves and adaptability in systems and in people, creates structure out of chaos, looks for risk taking attitudes, is open to all types of partnerships, is collaborative in nature and cultural diverse in its core, uses proven methodologies as bootcamps and best practices; – FYI: the term “open innovation” had 200 google entries in 2003, while 13M at start of 2011… a factor 60K in 9 years. © 2010 IBM Corporation
3.
Agenda CHRO Study “Working
beyond borders” or working beyond the “tunnel” Three workforce opportunities require focus from HR in order to drive growth, and innovation: – Cultivating creative leaders – Mobilizing for speed and flexibility – Capitalizing on collective intelligence Making HR build in innovation into strategy 3 © 2010 IBM Corporation
4.
The 2010 Global
Chief Human Resource Officer (CHRO) Study builds on our insights and findings over the last five years 2005 2008 2010 The Capability Within Adaptable Workforce Working beyond Borders Key Themes Key Themes Key Themes The menace of maturity Developing an adaptable Cultivating creative leaders The quest for talent workforce Mobilizing for speed and flexibility Retaining key people Closing the leadership gap Capitalizing on collective Cracking the code for talent intelligence Measuring performance Driving growth through workforce analytics 320 HR executive interviews 404 HR executive interviews 707 HR executive interviews 4 © 2010 IBM Corporation
5.
HR leaders focus
on two important goals — the need to drive growth and maintain operational efficiency: the problem of innovation Current and future areas of focus 64% Improving operational efficiency 44% 35% Developing new product/service offerings 48% Requires 31% Expanding into new markets/geographies Innovation 44% Today Three years “Our current stance is defensive to protect our profits under difficult economic circumstances; however, over the medium and long term, our agenda is geared toward global growth.” Director of Operations, United Kingdom Source: Q1 (Overall, what do you see as the primary business challenges affecting you organization today and in the next 3 years? Select THREE) 5 © 2010 IBM Corporation
6.
In the HR
domain,three key capabilities enable organizations to work beyond borders and therefore outside their tunnels: Mobilizing for speed Cultivating and flexibility creative leaders Rapidly develop and deploy Developing the next workforce skills and capabilities generation to lead a to match emerging opportunities more global, flexible and diverse workforce for business growth Capitalizing on collective intelligence Fostering collaboration and knowledge sharing to drive efficiency and foster innovation 6 © 2010 IBM Corporation
7.
1 Leadership: Less
than one-third of companies say they are effective at building the next generation of leadership capabilities Effectiveness at developing future leaders Relative effectiveness Ineffective 69% 9 8 7 6 Effective 31% 5 4 Developing • Lack of modern leadership styles (cooperative, supportive, 3 future leaders inspiring, lateral) 2 • Lack of knowledge on stimulating creativity & on reflecting 1 companies historic paths & traditions 1 2 3 4 5 6 7 8 9 • Lack of ways to incorporate external perspectives Relative future importance (suppliers, customers) “We have hired and trained people to work in silos. We need to identify future leaders who can operate in a globally integrated company, and train them to think and work globally.” Patti Stumpp, SVP HR, Invacare Corporation Source: Q2 (How important is it for your organization to address the following workforce challenges in the next 3 years? Select THREE) Q3 (How effective is your organization in addressing the following workforce challenges today: Developing future leaders? Effective = 4 and 5) 7 © 2010 IBM Corporation
8.
Key issues for
cultivating creative leaders Check the innovation style of leadership in your company Support your leaders in the process of innovation and collaboration! Foster multiple leadership styles, creativity and “out-of-the- tunnel”-thinking among your leadership team! Radically rethinking leadership development to emphasis business growth through innovation! 8 © 2010 IBM Corporation
9.
2 Mobilizing: While
companies are looking to become more flexible, they are still challenged in building and allocating talent Effectiveness ratings Efficiently allocating 64% Relative effectiveness the workforce across the 36% 9 organization 8 7 Rapidly developing 69% 6 workforce skills and 31% 5 Rapidly developing capabilities workforce skills 4 and capabilities Efficiently allocating Effective Ineffective 3 the workforce across the organization 2 • Lack of unified workforce strategy over different units 1 • Lack of focused allocation models • Lack of appropriate learning platforms & opportunities 1 2 3 4 5 6 7 8 9 Relative future importance Source: Q2 (How important is it for your organization to address the following workforce challenges in the next 3 years? Select THREE) Q3 (How effective is your organization in addressing the following workforce challenges today: Rapidly developing needed workforce skills and capabilities? Efficiently allocating the workforce across the organization?) (Effective = 4 or 5) 9 © 2010 IBM Corporation
10.
Key issues for
mobilizing for speed and flexibility Break down the organizational silos and tunnels that prevent the best use of your talent! Use alternative work structures provide greater opportunity for efficient and more innovative deployment! Reduce time to competence in your most critical jobs 10 © 2010 IBM Corporation
11.
3 Collective intelligence:
Organizations struggle to connect their workforces Effectiveness at fostering collaboration and knowledge sharing Relative Effectiveness 9 8 7 Ineffective 78% 6 5 4 3 Effective 22% 2 Fostering collaboration 1 and knowledge sharing 1 2 3 4 5 6 7 8 9 Relative future importance “We don’t share intellectual assets fully, even though we have the IT infrastructure to do so.” HR Executive, Industrial Sector, Japan Source: Q2 (How important is it for your organization to address the following workforce challenges in the next 3 years? Select THREE) Q3 (How effective is your organization in addressing the following workforce challenges today: Fostering collaboration and social networking? Effective = 4 or 5) 11 © 2010 IBM Corporation
12.
Key issues for
capitalizing on collective intelligence Get multiple generations of employees to actively engage in collaboration to overcome tunnels! Encourage formation and use of cross-organization communities around strategic business topics! Develop ways to explore, reward and integrate diverse and unconventional points of view! Use novel techniques to tap into the insights and ideas of employees around the world! 12 © 2010 IBM Corporation
13.
Becoming
borderless and more innovative… 13 © 2010 IBM Corporation
14.
Key challenges for
HR supporting company strategies & leaving the tunnel Use strategic influence not only for strategy execution but for strategy building while using this knowledge to enable a culture of innovation Lessons learned from the CHRO-Study to make HR itself a driver for innovation over the value chain of the enterprise: At the top: Develop knowledge & capabilities of your strategic leaders In the company: guarantee efficient learning and talent allocation to develop company’s intelligence In between: Connect collective company intelligence with top management levels to enable a culture of collaboration and creativity 14 © 2010 IBM Corporation
15.
For more information
For more information about this study, please visit the study web page: www.ibm.com/chrostudy2010 Or contact one of the IBM leaders listed below: Asia Pacific and Latin America: Denis Brousseau, dbrousse@cn.ibm.com Japan: Kazuya Ohike, KOHIKE@jp.ibm.com North America: Maria-paz Barrientos, maria.barrientos@us.ibm.com Northern Europe: Hans-Henrik Jorgensen, hans-henrik.jorgensen@de.ibm.com Southern Europe: Martina Pareschi, martina.pareschi@it.ibm.com IBM Institute for Business Value: Eric Lesser, elesser@us.ibm.com 15 © 2010 IBM Corporation
16.
Detailled insights …. Imperatives
for building innovation into the company strategy will require HR to focus on: Improve Expand into Develop new operational new markets/ product/service efficiency geographies offerings Cultivating Be comfortable with distributed Accelerate the development Design leadership development creative and virtual leadership of truly borderless programs to generate leaders approaches; create leaders leaders; be creative in innovative emerging who leverage informal power combining global and local business opportunities talent Mobilizing for Develop online marketplaces Adapt a global approach Leverage flexible work speed and to efficiently match global to sourcing talent; structures to rapidly align / flexibility talent supply with demand eliminate policy and process connect talent with barriers to cross-border critical jobs in new movement business areas Capitalizing Improve productivity through Improve cross-functional Establish a culture of creativity on collective best practices sharing and effectiveness by providing and innovation where new intelligence reducing duplicative efforts an online platform for product ideas get visibility and virtual team collaboration executive support 16 © 2010 IBM Corporation
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