�HRT: HR From the Inside-Out

Anna Kasafi Perkins, PhD

University of the West Indies, Regional Headquarters

November 20, 2013

We…going discuss, do

• Improvement & standards at the core of professional organisations
• Environment scanning – trends, cutting edge strategies/research
• Trend leader- Transformational HR
• HR Transformation: Building HR from the Outside In (2009) – handbook (ideas & practices) & HR from the Outside In: Six Competencies for the Future of Human Resources (2012) – building competencies; expand scope and include crucial external stakeholders
• Dave Ulrich, Jon Younger, Wayne Brockbank & Mike Ulrich – UMichigan & RBL Group – theory (ideas, rationale, approaches), empirical work, experience, thought leaders – workshops, papers, tools, books (learn by doing)
• www.hrtransformation.com
• Changing environment leads to changed HR
• Principles of HR Transformation
• 6 competencies for transformed HR
• Key competence - Credible activist
• Explore HR Transformation tools

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HR Transformation

• HR changed over past 50 years – IR specialists-specialists in HR practices-organisation development partners who delivers business value (RBL observe/influence transition)
• increased accountability for HR practice/HR fx aligned to business results, HR as business partner (thought leadership, insightful recommendations, practical processes)
• HRT based on organisational change theory, systems theory, high performance teams, economics
• Theory without practice = conjecture, irrelevant; practice without theory is idiosyncratic; unsustainable
• Principles of HR transformation
• Understand & implement
• Shift from what we do to what we deliver
• From activities we perform to the values they create

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Definition of HR Transformation (Ulrich, et al., 2009, pp. 8-9)

• A true HR transformation is an integrated, aligned, innovative, and business-focused approach to redefining how HR work is done within an organization so that it helps the organization deliver on promises made to customers, investors, and other stakeholders. This work begins with a clear rationale for doing HR transformation. The rationale for HR transformation is too often from inside the company . . ., whereas the rationale should actually come from outside the company.

Business Environment

• Business success = reducing costs, increasing market share, growing global market, innovating new products & services/delivering services, achieving externally imposed goals, meeting constituent needs, operating on a reduced budget
• Challenges more complex
• Economic, global, technological, customer, demographic changes
• Business leaders seek innovative solutions to managing cost and growth
• Increased expectations of HR – aligned to the goals of the business
• HR contribution involves transformation of the way HR works/how organised (HR practices to be designed, integrated and aligned to business requirements)
• Urgency heightened by uncertain economic environment

Beginning HRT – Outside In

• Begin from the outside in - “Inside creates value on the outside”/outside determines value to be created on the inside
• Counterintuitive – inside out natural movement/ “look inside yourself”
• So that query – shift from what we do to what we deliver
• Clear understanding of the business context – rationale for HRT – zero value
• Not about doing HR!
• “means determining – not simply implementing – strategy, shaping corporate culture, not just upholding it; and using information technology to seize opportunities”

Common Pitfalls: Viruses

• Infect and cripple transformation/identified, confronted, treated overcome
• Action before rationale
• HR in isolation
• Piecemeal efforts
• HR by Fiat
• HR Structure in front of Business Strategy
• Efficiency = transformation
• VIRUS TOOL 1.1 (overcoming viruses that prevent change)

Model for HRT

Build business case – business context and case for change

Define outcomes – capabilities of the firm or intangibles that an investor values

Change strategy around depts, practices, people

Engage line managers, etc; people participate in defining and delivering. Ownership transferred to line managers

Having the right HR Transformation Team is critical to initiating HR Transformation. Formation of HR Transformation Team is critical to the entire process

Key Attributes of HR

Source: Ulrich, et al., 2009

6 Competencies of �Transformed HR

PURPOSE – BUILD BUSINESS SUCCESS!

• a) Strategic positioner
• b) Credible activist
• c) Capability builder
• d) Change champion
• e) HR Innovator and integrator
• f) Technology proponent

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Credible Activist

• Respected, admired, listened to & active (offers a POV, takes a position, challenges assumptions)
• Follow through on commitments
• Reputation for reliability and results
• Authority in the HR field; evidence-based recommendations to solve problems
• Build relationships of trust
• Respect of OI

Strategies for Transformational Leap in OI

• Leverage power of information flow, technology and external stakeholders
• Pivotal external partners – customers, partners, investors, suppliers & community members
• 1. invite partners to training sessions
• 2. co-create employee performance measures with clients and suppliers
• 3. build reputation as employer and leader
• 4. manage community perception of the firm
• 5. involve customers in selecting new hires/rewarding
• 6. work with investors/shareholders on strategy development

Readiness Assessment

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• Tool 2.1
• Identify level of readiness
• Scores tell where you are and what you should do

Jump Start HRT

• Tool 2.3
• Prominently feature OI Perspective
• Benchmark HR Competencies
• Assess HR Organizational Performance
• Get a broader perspective
• Align the Strategy
• Identity Organizational Capabilities needed for success
• Get people focused on the right competencies