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HR in the 21st Century:
The Transformation Continues
Row Henson
HCM Fellow, Oracle Corporation
Convergence of the .(dot) Shifts
Business 2.0
HCM 2.0
Web 2.0
= Transformation 2.0
Evolution for HCM
New Technological Paradigm
Yesterday’s
Technology Platform
Web 1.0
versus
Today’s
Technology Environment
Web 2.0
•
•
•
•
Systems Agility
Collaboration / Sharing
Extended / Global
Efficiency / Effectiveness
New Demands for HCM
New Workplace Demands
Yesterday’s
Business Agenda
Work 1.0
versus
Today’s
Business Imperative
Work 2.0
New Workforce Demands
Yesterday’s
Human Resource
Labor
versus
Today’s
Human Capital
People
New Workforce Demographics
Yesterday’s
HRIS Application
HRIS
•
•
•
•
versus
Today’s
HCM Suite
HCMS
Business Agility
Engagement / Retention
Workforce Intelligence
Business Performance
Agenda
•
•
•
•
•
•
•
HR Transformation 1.0 1995 - 2004
HR Transformation 2.0 2004 – beyond
HR Transformation Report Card
HR Transformation Competencies
The Future of the Workforce
Technology Foundation – Web 2.0
Measuring the Impact of Talent on Business Results
Reengineering Human Resources 1995
HR Transformation – A Global Thing
• Over 75% of firms
involved in HR
transformation efforts
• US leads in completed
projects
• Huge number of “in
process” HR
transformations
elsewhere
• Only a few HR leaders
have no plans
Source: Mercer HR Consulting Global HR Transformation Study, 2004
It’s About Time (Spent)
After 10+ years talking about being more strategic…not enough progress!
Source: Mercer HR Consulting Global HR Transformation Study, 2004
Agenda
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•
•
•
•
•
•
HR Transformation 1.0 1995 - 2004
HR Transformation 2.0 1996 – beyond
HR Transformation Report Card
HR Transformation Competencies
The Future of the Workforce
Technology Foundation – Web 2.0
Measuring the impact of Talent on Business Results
What is HR Transformation 2.0
Mercer 2006 Transformation Study
Mercer 2006 Transformation Report
Agenda
•
•
•
•
•
•
•
HR Transformation 1.0 1995 - 2004
HR Transformation 2.0 1996 – beyond
HR Transformation Report Card
HR Transformation Competencies
The Future of the Workforce
Technology Foundation – Web 2.0
Measuring the impact of Talent on Business Results
Transforming HR
•One size does not fit all
•Process flexibility and adaptability
•Innovate or be outsourced
•Business partner/business
alignment
•Owner of corporate culture/
employee brand
•Competency/talent identification &
development
•Project management skills
•Better analytical skills
Future skill requirements for HR
professionals – Mercer 2006 report
•
•
•
•
•
•
•
•
•
•
•
•
Interpersonal skills
Team skills
Interviewing and assessment
Consultation/negotiation skills
Leadership
Change management
Cultural change/transformation skills
Business understanding
Conflict management
Coaching/facilitation
Customer service
HRIS data analysis and reporting
Agenda
•
•
•
•
•
•
•
HR Transformation 1.0 1995 - 2004
HR Transformation 2.0 1996 – beyond
HR Transformation Report Card
HR Transformation Competencies
The Future World of Work
Technology Foundation – Web 2.0
Measuring the impact of Talent on Business Results
Future World of Work
•
•
•
•
What will the workforce look like?
Where will the talent come from?
Workplaces or workspaces?
Who owns the talent pool and the
company culture?
• How do we prepare for these changes?
Workforce Demographics
•
•
•
•
•
•
•
•
Reduced Workforce
Workforce is getting older
3 Generations working together
Increase of women in the
workforce
Rise in the contingent workforce
Global, mobile, virtual worker
Decline in education level in
developed countries
Dominant language in next 50
years – Chinese?
Each generation in the workplace comes with its
own sets of experiences and expectations that can
occasionally come in conflict with one another
Traditionalist
Boomer
The hard way
Too much and I’ll
leave
Required to keep
me
Continuous &
expected
Classroom
Facilitated
Independent
Collaborative &
networked
Communication
style
Top down
Guarded
Hub & spoke
Collaborative
Problem-solving
Hierarchical
Horizontal
Independent
Collaborative
Decision-making
Seeks approval
Team informed
Team included
Team decided
Leadership style
Command &
control
Get out of the way
Coach
Partner
No news is good
news
Once per year
Weekly/daily
On demand
Uncomfortable
Unsure
Unable to work
without it
Unfathomable if not
provided
Unwise
Sets me back
Necessary
Part of my daily
routine
Training
Learning style
Feedback
Technology use
Job changing
Gen X
Gen Y
Source: Lancaster, L.C. and Stillman, D. When Generations Collide: Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work. Wheaton, IL. Harper Business, 2003.
Agenda
•
•
•
•
•
•
•
HR Transformation 1.0 1995 - 2004
HR Transformation 2.0 1996 – beyond
HR Transformation Report Card
HR Transformation Competencies
The Future of the Workforce
Technology Foundation – Web 2.0
Measuring the impact of Talent on Business Results
Common Web 2.0 Tools
Blogs
Interactive discussion led by
one individual
Wikis
Fully collaborative
document/website creation
Social
Bookmarking
Track interests and share with
others
Social
Software
Organize and connect with
others with similar interests
RSS Feeds
Subscribe to news and
changes – syndication
Chat
Private one-on-one or group
interaction
Virtual Worlds Meet and interact with others
in a virtual world
Tomorrow’s Web 2.0 Work Environment
KIA Research
Q3 Budget Review
Capital Expenses, KIA Analysis
Employee Reviews
Acquisition Analysis
Stress Reduction Tips
Q2 Competitive Analysis
Evolving HR Practices
Engager
Traditional
Internet
Web 2.0
Visibility
All Hands Meetings Replayable
Webcasts
Interactive blogs
Development
Classroom training
eLearning
Informal learning,
tagging
Community
Team building
offsites
D-lists, webinars
Social networking,
workspaces
Recognition
Plaques
Email
announcements
Recommendations,
kudos, ratings
Empowerment
Employee surveys
Online surveys
Wikis, chats, forums
Attraction
Job Fairs, word of
mouth
Online advertising,
Email referrals
Blogging, RSS,
Social networking
Who’s Adopting Web 2.0?
Executives Worldwide:
 >75% plan to maintain or increase their investments
that encourage user collaboration, social networks, etc.
 66% regret not boosting their capabilities to exploit new
technologies. More executives said they should have
acted faster.
The McKinsey Quarterly conducted this survey in January 2007
and received responses from 2,847 executives worldwide, 44% hold C-level positions.
What Web 2.0 Technologies are Being
Adopted?
Blog
32%
Wiki
33%
Podcasts
35%
RSS
35%
Social Networking
Collective Intelligence
Use or
Planning to Use
39%
48%
Web Services
The McKinsey Quarterly conducted this survey in January 2007
and received responses from 2,847 executives worldwide, 44% hold C-level positions.
80%
Agenda
•
•
•
•
•
•
•
HR Transformation 1.0 1995 - 2004
HR Transformation 2.0 1996 – beyond
HR Transformation Report Card
HR Transformation Competencies
The Future of the Workforce
Technology Foundation – Web 2.0
Measuring the impact of Talent on Business Results
Measuring Human Capital
Asset
People
as
Means
People
as
Capital
Loss
Profit
People
as
Problems
Liability
Source: Chapman Condy Company
People
as
Costs
Why Measure?
• STOP: “I think….I feel”
• START: “I know…I can prove”
• SHIFT: From Tangible to Intangible Asset Accounting
Changing the questions that we ask
FROM…
TO…
• How do we prove the worth of • How do we identify those HR
the HR function?
programs/policies that would
have the greatest positive
impact on our key
performance indicators?
Source : Laurie Bassie – McBassie & Company
Changing the questions that we ask
FROM…
TO…
• How do we show a ROI (cost
savings) on our HR
interventions?
• How do we link our HR
interventions to key
performance indicators?
Source : Laurie Bassie – McBassie & Company
Changing the questions that we ask
FROM…
TO…
• How do I justify/increase our
training budget?
• What are the key differences
in the training histories of our
top and bottom performers?
Changing the questions that we ask
FROM…
TO…
• How do we maximize
employee engagement?
• What are the critical
engagement differentials
between top and bottom
performing business
units/functions?
Source : Laurie Bassie – McBassie & Company
Metrics That Matter: Analytic Taxonomy
Predictive Modeling
I
M
P
A
C
T
Correlated Analytics
Contextual Embedded Analytics
Metrics Delivery (Dashboards)
Information Distribution
COMPLEXITY
Business Evolution
From the Industrial Age to the Knowledge Age
Confluence of HR, Technology and Business
CHRO / CPO
Human Capital
Knowledge
Strategy
Global
Manufacturing
MRP
VPHR
Legal Protector
Competencies
Local
Finance
Host Systems
Personal Dir
Recordkeeping
Skills
People
Opportunity Creation /
Effectiveness
Efficiency
Process
ERP
Automation
Data
Mainframe
Packages
Host
Client/
Server
Internet
Technology Evolution
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Questions?
For more info. Contact
row.henson@oracle.com
Enjoy the rest of the meeting!