strategic thinking 12_jun_2014

MOVING FROM OPERATIONAL TO STRATEGIC

THINKER

Marius Meyer, CEO: SABPP

12 June 2014

marius@sabpp.co.za

@MariusSABPP & @SABPP1

Do you see the bigger picture?

Agenda

• Part A: HR trends and best practices

• Part B: State of HR profession

• Part C: HR Competency Model & National HR

Standards

The role of HR …

• Identifying talent issues before they impact the

business

• Adjusting HR strategies to respond to changing

business needs

• Understanding how HR business partners can

support the business

The results of our research indicated that our top three priority

CCR’s include the following:

SABPP Strategic Vision

“To Professionalise the HR Profession”

SABPP - ETQASABPP – Registration

CommitteeHRD

Committee

Business Leader’s

Expectations

OR

Critical Customer Requirements

(CCR’s)

Key HR Business Partner Outputs

Competencies

Care

er P

ath

s

Le

arn

ing

So

lutio

ns

SABPP Strategic Vision

“To Professionalise the HR Profession”

SABPP - ETQASABPP – Registration

CommitteeHRD

Committee

Business Leader’s

Expectations

OR

Critical Customer Requirements

(CCR’s)

Key HR Business Partner Outputs

Competencies

Care

er P

ath

s

Le

arn

ing

So

lutio

ns

1Communicating organisational culture/values to Employees

1Keep abreast of new legislation that may impact on business

1Preparing for different situations

2Responding to organisational changes

2Managing conflict between managers

2Assessing Employee attitudes

3Enforcing standard HR policies and procedures

3Resolving political problems in the execution of business plans

4Respond to manager needs

4Retention of talent within the business

5Capacity building/Skills development

6Quickly responding to employee needs

6Communication around HR in general

11Tracking trends in employee behaviours and attitudes.

11Keep the line updated on HR initiatives

13Prioritizing across HR Needs

25Utilising new business strategies

30Developing the next generation of leaders

32Identifying talent issues before they can impact on the business

35Identifying HR Metrics

42Adjusting HR strategies to respond to changing business needs

43Understanding how HRB’s can support the business

48Redesigning Organisational Structure around strategic objectives

54Understanding the Talent needs of the business

TOTALCCR

1Communicating organisational culture/values to Employees

1Keep abreast of new legislation that may impact on business

1Preparing for different situations

2Responding to organisational changes

2Managing conflict between managers

2Assessing Employee attitudes

3Enforcing standard HR policies and procedures

3Resolving political problems in the execution of business plans

4Respond to manager needs

4Retention of talent within the business

5Capacity building/Skills development

6Quickly responding to employee needs

6Communication around HR in general

11Tracking trends in employee behaviours and attitudes.

11Keep the line updated on HR initiatives

13Prioritizing across HR Needs

25Utilising new business strategies

30Developing the next generation of leaders

32Identifying talent issues before they can impact on the business

35Identifying HR Metrics

42Adjusting HR strategies to respond to changing business needs

43Understanding how HRB’s can support the business

48Redesigning Organisational Structure around strategic objectives

54Understanding the Talent needs of the business

TOTALCCR

Part A:

HR Trends & Best Practices

Where is HR going globally and in South Africa?

What are the major HR trends and best practices?

PARADIGM SHIFT

OPERATIONAL MINDSET

• Day-to-day tasks

• Transactional HR

• Getting things done

• Crisis reactive management

• Doing things now

• Training for tasks

• Managing people

• Internal focus

• Short-term measures

STRATEGIC THINKING

• Long term priorities

• Transformational HR

• Creating value

• Proactive management

• Planning things for future

• Organisational capability

• Leading people

• External focus

• Strategic measures - metrics

IBM CEO Study 2012:

Factors impacting organisations

1 Technology factors (71%)2 People skills (69%)3 Market factors (68%)4 Macro-economic factors5 Regulatory concerns6 Globalisation7 Socio-economic factors8 Environmental issues9 Geopolitical factors

IBM CEO Study 2012

HR Trends

• HR as Strategic Partner and Talent Management

• HR Governance

• HR Risk Management

• New role to impact ethics in organisations

• HR contribution to CSR and socio-economic

situation - sustainability

• HR Technology and Social Media

• HR standards and metrics – integrated reporting

• HR Competency models - professionalism

HR manager’s response to

metrics?

Biggest Opportunities for HR

IBM: Working beyond Borders

• Cultivating creative leaders

• Mobilising for greater speed and flexibility

• Capitalising on collective intelligence i.e. collaboration

Most important organisational

capabilities over the next five years

IBM: Working beyond Borders

31%

33%

34%

37%

28% 30% 32% 34% 36% 38%

Innovation

Client connectivity

Execution speed

Leadership

Most important leadership qualities

over the next five years

IBM: Working beyond Borders

35%

52%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Ability to balance work and lifedemands

Integrity

Creativity

Part B:

State of HR Profession in SA

What is the current state of HR in SA?

Top facts about HR

• Human Capital is the biggest concern for

CEOs (PwC).

• Only 18% of CEOs feel confident that they

have the right people in place to execute

strategy (CEB).

• Human Capital is the biggest risk in

business (HCI Africa).

• Skills crisis is the top obstacle to economic

growth.

• Strikes cost SA R197 million per day.

More facts about HR

• SA losing R12 billion a year due to absenteeism.

• Only 5% of employees understand business

strategy.

• World-wide only 13% of employees actively

engaged.

• Companies with engaged employees outperform

others by 202% (Dale Carnegie).

• Companies with good HR Practices outperform

others by treating HR as critical business function,

these companies are 105% more profitable.

• Average ROI on wellness programmes: 300%.

SABPP Professional Values

RESPONSIBILITY

I

RESPECT

INTEGRITY

COMPETENCE

SABPP BENEFITSRECOGNITION =

PROFESSIONAL STATUSRESOURCES =

PRODUCTS/SERVICESRESEARCH =

INFORMATION

• Professional registration• NLRD Upload (SAQA)• RPL• Awards• Advocacy• HR Assessors/Moderators

registration• Accreditation of providers• University accreditation

• HR Competency Model• Social media discussions• Knowledge Centre• Booklets/DVDs• Guides/toolkits• Charts/posters• Fact sheets• One-stop info• Updates (laws)• Ethics help-line• Newsletters• Website• HR Internships/jobs• HR policies• Mentoring• Workshops/seminars• Access to alliances• CPD• Students

• Research papers• Position papers• Books• Articles• Cases• Benchmarking• Magazines• Labour market

information

Professional registration levels

• M/D degree + 6 years top level experience

• LoW = executive levelMHRP

(Master)

CHRP

(Chartered)

• Degree/ND + 3 years experience

• LoW = middle managementHRP (Professional)

HRA (Associate)

• Certificate + 1 year experience

• LoW = entryHRT (Technician)

• Hons degree + 4 years sr experience

• LoW = senior management

• 2 year dip + 2 years experience

• LoW = junior level

BUSINESS STRATEGY – HR BUSINESS ALIGNMENT

❶ StrategicHRM

❷ TalentManagement

❸ HR RiskManagement

HR ARCHITECTURE

HR VALUE & DELIVERY PLATFORM

❹Work-force

planning

❺

Learning

❻Perfor-mance

❼

Reward

❽Well-ness

❾ERM

❿OD

⓫ HR Service Delivery

⓬HR Technology

(HRIS)

Prepare

Imple-ment

Review Improve⓭ HR MEASUREMENTHR Audit: Standards & Metrics

H R

C O

M P

E T E N C

I E SSABPP HRM SYSTEM STANDARDS MODEL

STRATEGIC HR

MANAGEMENT STANDARDDEFINITION

Strategic HR Management is a systematic

approach to developing and implementing

long-term HRM strategies, policies and plans

that enable the organisation to achieve its

objectives.

SABPP (2013)

STRATEGIC HRM STANDARD ELEMENT:

IMPLEMENTATION

Framework of HR policies & programmes

Environmental scan (PESTL)

HR structure, service model and capability

development

People strategy

HR strategic agenda

Organisation’s strategic intent

HR strategic agenda

HR business

plan

People strategy

Allocate roles & responsibilities

(line/HR/support functions)

MONITOR & EVALUATE

HR/Line relationship?

HR RISK MANAGEMENT

DEFINITION

HR Risk Management is a systematic

approach of identifying and addressing people

factors (uncertainties and opportunities) that

can either have a positive or negative effect

on the realisation of the objectives of an

organisation.

SABPP (2013)

LIFE IS ABOUT RISKS – THE HUMAN LIFE CYCLE

FIRST 20 YEARS

1 – 18 years

19 – 21 years

MIDDLE 40 YEARS

Death

Before birth

LAST 20 - 40 YEARS

0 – 2 years

Retirement

Importance of HR Risk

Dave Beretti, City of Cape Town

“In any organisation people are the single most valuable asset, but if badly

managed, they can become the organisation’s

greatest liability.”

Risk + readiness

SABPP HR Risk Study

Source: SABPP (2010)

H R R I S K S – 8 African countries

• Safety - accidents

• Skills shortages/gaps

• Incompetence

• Employee disengagement

• Strikes & poor employment relationships

• Fraud/corruption

• Stress

• Staff turnover

• Low staff satisfaction –impact on customer satisfaction

• Cyber security

• Conflict/disputes

• Diversity problems

• Sexual harassment

• Expatriate issues

• Non-compliance

HR Risk example

HR RISK MANAGEMENT PROCESS

Assessment of risk tolerance for each risk

Identify and evaluate impact of

HR risks

HR practices, programmes, metrics to

manage risks

HR Risk Map

HR Risk Register

Organisation’s risk management

structures and processes

HR Risk Register

HR Risk Management

Plan

HR Risk Map

MONITOR & EVALUATE

Wors Analysis

Wors Analysis

WEAKNESSES

• Low visibility of HR

• Poor communication

• Lack of technology

• Low satisfaction levels

OPPORTUNITIES

• Local skills development

• Stronger talent pipeline

• Alliances in countries

• E-learning

RISKS

• Safety of staff

• Political risk - countries

• Regulatory challenges

• Capacity to deliver

• Employee retention

STRENGTHS

• Good learning centre

• Clear talent pools

• Ethical culture

• Sound leadership

• Great team of expats

Do you manage HR risk?

Part C:

HR Competencies

What competencies do we need to deliver world-

class HR work?

Competency levels of the top 10

HR priorities

Priority Area Priority

Weight

Competency

Weight

Priority

Rank

Competency

Rank

Creating a high-performance culture /

Performance management 3.91 3.42 1 6

Leadership and management

development 3.79 3.36 2 8

Skills development 3.77 3.58 3 3

Focus on corporate values, ethics 3.71 3.45 4 4

Industrial / Employee relations 3.69 3.70 5 2

Customer service / relations 3.68 3.43 6 5

Employee engagement 3.68 3.35 7 9

Change management 3.68 3.22 8 16

Crafting and implementing HR strategy 3.64 3.40 9 7

HR policies and procedures 3.62 3.71 10 1

HR Survey (2011)

HR COMPETENCY HOUSE

SOUTH AFRICAN HR COMPETENCY MODEL

STRATEGY

TALENT MANAGEMENT

HR GOVERNANCE, RISK, COMPLIANCE

ANALYTICS & MEASUREMENT

HR SERVICE DELIVERY

5 HR

CAPABILITIES

LEADERSHIP & PERSONAL CREDIBILITY

ORGANISATIONAL CAPABILITY

SOLUTION CREATION & IMPLEMENTATION

INTERPERSONAL & COMMUNICATION

CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY

CO

RE

CO

MP

ET

EN

CIE

S

HR & BUSINESS KNOWLEDGE

DUTY TO SOCIETY

ET

HIC

S

PR

OF

ES

SIO

NA

LIS

M

4

PILLARS

How to become a strategic thinker

• Study the strategy of your business

• Study the strategies of other businesses

• Read more about strategy – FM, HBR

• Internalise the annual report of your

company

• Identify HR opportunities from the strategy

• Put your strategy on one page

• Develop an HR Risk Framework

• Do proper HR analytics and metrics

National HR Governance Strategy Alignment

HR Professional Standards:• HRMS (13)• HRMSAS (13)• HRPPS (30+)

HR Products/Services:• CPD• Mentoring• Professional registration• Research• HR Academy – QCTO• Curriculum standards

HR Metrics:• National HR Scorecard• HR Service Standards

HR Auditing:• Internal Audit• External Audit

King IV:HR Governance

ISO: HR

IntegratedReporting

HR Competencies

Top management perspective

“The human resource professional in

an organisation needs to be an integral part of the leadership and

the ‘right hand’ of the chief executive. Establishing and sustaining an ethical ethos, the HR professional must work closely with the executive

leadership team to define and promote the culture of an

organisation based on the underlying values and then entrench the culture

through all the touch points in the human capital value chain.”

Edward Kieswetter, CEO: Alexander Forbes

HR excellence: It is all about alignment

Conclusion

HR professionals need to move from an

operational to a strategic mindset. Join us on

the journey towards high impact strategic HR

thinking, plans and results.

Let us rise to the challenge and

deliver strategic HR excellence

SABPP BLOG

For regular updates join our special

HR Standards Blog:

www.hrtoday.me

Let us build a great HR profession!

professional@sabpp.co.za (Professional Registration)

kenneth@sabpp.co.za (Stakeholder Relations)

penny@sabpp.co.za (Research)

naren@sabpp.co.za (Learning & Quality)

marius@sabpp.co.za (Strategy inputs)

voice@sabpp.co.za (Social media)

Website : www.sabpp.co.za

New office: 8 Sherborne Str, Parktown

Tel: 011 482-8595 Fax: 011 482-4830

Cel: 082 859 3593 (Marius Meyer)