“Managing
HR Talent in
Turbulent Times”
David C. Forman, SPHR
Senior Vice President
Professional and Business Development
Society for Human Resource Management
HR: Leading People, Leading Organizations
© 2003 SHRM
Definitions
“Turbulent”(adj.): movement or
agitation.
“Turbulence”(noun): confusion.
HR: Leading People, Leading Organizations
© 2003 SHRM
“The Future Ain’t What It
Used To Be !!!!
Source: Yogi Bera
HR: Leading People, Leading Organizations
© 2003 SHRM
“The Future arrived when we
weren’t looking, so we’re still
dealing with issues, ideas and
programs that don’t fit the
world’s new realities.”
Source: Peter Drucker
HR: Leading People, Leading Organizations
© 2003 SHRM
What is the Future of the Human
Resources Profession ?
HR: Leading People, Leading Organizations
© 2003 SHRM
Which of These is True?
“The next ten years will be the HR decade.”
Professor David Ulrich
“Human Resource Champions”
“I am describing your human resources
department, and have a modest proposal:
Why not blow it up?”
Thomas A. Stewart
“Fortune” Magazine
HR: Leading People, Leading Organizations
© 2003 SHRM
General Electric
HR: Leading People, Leading Organizations
© 2003 SHRM
General Electric
Announcement to employees of the “Human Resource Leadership Program”
HRLP (Human Resources Leadership Program)
HRLP will prepare you for a dynamic role in the human dimension of GE. By helping
to develop our future leadership, your work will influence the direction of our company.
Program Summary
A 2-year entry-level program consisting of 3 challenging and in-depth 8-month
assignments
Broad business skills developed via hands-on experience in two HR assignments,
plus a third assignment in an area such as finance, quality or business development
Formal classroom training in advanced human resources techniques and business
concepts
Extensive contract with peers and senior business leaders from around the word
Expansion of your knowledge base, critical problem-solving skills and network of
valuable contacts
Candidate Criteria
Demonstrated academic excellence, business acumen and leadership ability
Self-confidence, strong analytic problem-solving skills and exceptional
communication skills
MBA/MA in Business or an HR-related discipline plus several years work experience
preferred
Geographic flexibility and global mindset; able to operate across cultures
GE’s HR-Development Opportunities
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Employee-relations problem-solving assignment
HR-generalist assignment
Technical-specialization assignment
Organization-effectiveness intervention experience
Process-consulting experience
Community-relationship experience
Stretch job assignment
Exposure to global issues
Staff assignment
Cross-functional experience
Fix-it assignment
Start-up assignment
Large-scale change effort
Organization-structuring assignment
Corporate assignment
HR functional-leadership assignment
Business-team partnership experience
Business-leaders support assignment
Exposure to role models
Extended professional network
HR: Leading People, Leading Organizations
© 2003 SHRM
• “This business game is all about
winning. The team that wins is the
team with the best players. Your job
is to field the best players.”
• Jack Welch, Former CEO General Electric
Corporation
HR: Leading People, Leading Organizations
© 2003 SHRM
Which of These is True?
“The next ten years will be the HR decade.”
Professor David Ulrich
“Human Resource Champions”
“I am describing your human resources
department, and have a modest proposal:
Why not blow it up?”
Thomas A. Stewart
“Fortune” Magazine
HR: Leading People, Leading Organizations
© 2003 SHRM
The Container Store
HR: Leading People, Leading Organizations
© 2003 SHRM
The Container Store
The Container Store has NO HR Officer or
Department
!!!!!!!!!
HR: Leading People, Leading Organizations
© 2003 SHRM
Which of These is True?
“The next ten years will be the HR decade.”
Professor David Ulrich
“Human Resource Champions”
“I am describing your human resources
department, and have a modest proposal:
Why not blow it up?”
Thomas A. Stewart
“Fortune” Magazine
HR: Leading People, Leading Organizations
© 2003 SHRM
The Essential Question???
How can HR professionals
produce significant value
and deliver results???
HR: Leading People, Leading Organizations
Become a Strategic
Business Partner
HR: Leading People, Leading Organizations
ON BEING A “STRATEGIC PARTNER”
Only 34% of HR
Executive Are
Viewed
As “Strategic Partners”
SHRM/BSCol Survey, 2002
HR: Leading People, Leading Organizations
© 2003 SHRM
Business Environment:
Workforce issues are at the top of the
agenda for CEOs
Increasing recognition among business
leaders that people represent the only real
competitive advantage a company can
sustain
HR: Leading People, Leading Organizations
© 2003 SHRM
Where is HR Going in These
Turbulent Times ?
• There can be an EXCITING future for the
profession.
• But human resource professionals have to
be prepared, willing and able to embrace
that future!
HR: Leading People, Leading Organizations
© 2003 SHRM
What Are The Current Business
Issues?
What are HR Professionals Saying?
What are CEO’s Saying?
HR: Leading People, Leading Organizations
© 2003 SHRM
The Top Seven
People-Related HR Issues
1.
2.
3.
4.
5.
Retaining Talent
Attracting Talent with Critical Skills
Improving Workplace Performance
Gaining Control of Health Care Costs
Using the Web Effectively for Information/Service
Delivery
6. Creating “People Measures” for a Balanced Scorecard
7. Building New Workforce Skills for the Next Round of
Growth
SOURCE: Towers Perrin interview of HR Professionals
HR: Leading People, Leading Organizations
© 2003 SHRM
TOP CEO Issues:
Customer Loyalty/Retention
Engaging Employees in Company Vision/Values
Competing for talent
Shortage of Key Skills
Reducing Costs
Increasing Flexibility/Speed
Industry Consolidation
HR: Leading People, Leading Organizations
© 2003 SHRM
TOP CEO Issues
Customer Loyalty/Retention
HR’s Work
Relationship: Employee/Brand
Engaging Employees in
Company Vision/Values
Competing for talent
Talent Management
Shortage of Key Skills
Reducing Costs
Reducing Costs
Increasing Flexibility/Speed
Applying New Technology
Industry Consolidation
Mergers & Acquisitions-Reconfiguring Business
HR Has Key Opportunities
Greatest opportunities for impact:
1. Strategic business partner: part of the business
2. Applying new technology
3. Achieving competitive advantage through
people
4. Mergers & Acquisition / business reconfiguration
5. Reducing costs / HR metrics
HR: Leading People, Leading Organizations
© 2003 SHRM
Key HR Transformations

Developing a New vision and Theory of the
Case

Shifting to Consulting and Client Service
Orientation

Applying Re-Engineering and Work Re-Design
Principles to the HR Function and Its Roles

Producing Operational Value
Source: SHRM Foundation
HR: Leading People, Leading Organizations
© 2003 SHRM
HR Transition
Functional Specialist to Strategic Business Partner
26
Functional Specialist
Business Partner
Nature of HR
programs and
function
Responsive
Operational
Internal
Proactive
Strategic
Societal
Nature of HR strategy
and policy
HR department full
responsibility
HR and line
management share
responsibility
Organization of HR
function
Employee advocate
Functional structure
Reporting to staff
Business partner
Flexible structure
Reporting to line
Profile of HR
professionals
Career in HR
Specialist
Lack of financial skills
Current focus
Monolingual
National perspective
Rotation
Generalist
Financial expertise
Focus on future
Multilingual
Global perspective
New Competencies for Strategic
Human Resource Leaders
HR: Leading People, Leading Organizations
Framework For HR Competencies
Competencies
Activities
Business Results
HR: Leading People, Leading Organizations
HR Competency Domains
• Strategic Contribution
• Personal Credibility
• HR Delivery
• Business Knowledge
• HR Technology
Source: University of Michigan Business School
HR: Leading People, Leading Organizations
© 2003 SHRM
HR Competency Domains
• Strategic Contribution
43%
• Personal Credibility
23%
• HR Delivery
18%
• Business Knowledge
11%
• HR Technology
5%
HR: Leading People, Leading Organizations
© 2003 SHRM
A New Role and a New Title for
HR Professionals
HR: Leading People, Leading Organizations
© 2003 SHRM
Sources of Competitive Advantage
Economic/
Financial
Capability
Strategic/
Marketing
Capability
Technological
Capability
“Organizational Capability”
David Ulrich and Dale Lake
HR: Leading People, Leading Organizations
© 2003 SHRM
Sources of Competitive Advantage
Economic/
Financial
Capability
Strategic/
Marketing
Capability
Organizational
Capability
(the New Role for HR)
Technological
Capability
“Organizational Capability”
David Ulrich and Dale Lake
HR: Leading People, Leading Organizations
© 2003 SHRM
Organiztional Capability
• “ Organizational Capability is a business’s
ability to establish internal structures and
processes that influence its members to create
organization-specific competencies and thus
enable the business to adapt to changing
customer and strategic needs”.
D. Ulrich & D. Lake (1990). Organizational
Capability”. John Wiley
HR: Leading People, Leading Organizations
© 2003 SHRM
The New HR Title
Chief Officer
(Director)
of
“Organizational Capability”
HR: Leading People, Leading Organizations
© 2003 SHRM
The New HR Job Description
1. To create programs of recruitment,
development and retention of world class
talent and leaders to support the growth
of the organization.
HR: Leading People, Leading Organizations
© 2003 SHRM
The New HR Job Description
1. To create programs of recruitment,
development and retention of world class
talent and leaders to support the growth
of the organization.
2. To champion the nurturing of a culture,
aligned with organizational strategy, to
bring about organizational commitment
to ethical practices, lifelong learning and a
sense of responsibility to all stakeholders.
HR: Leading People, Leading Organizations
© 2003 SHRM
The New HR Job Description
1.
2.
3.
To create programs of recruitment, development
and retention of world class talent and leaders to
support the growth of the organization.
To champion the nurturing of a culture, aligned
with organizational strategy, to bring about
organizational commitment to ethical practices,
lifelong learning and a sense of responsibility to
all stakeholders.
To create programs that will continuously raise
the competencies and capabilities of the members
of the organization to assure achievement of
organizational objectives.
HR: Leading People, Leading Organizations
© 2003 SHRM
Wall Street Journal
Vice President, Human Resources
Global Fortune 500 Company of 30,000 employees, the leader in its
field, is seeking a Corporate Vice President of Human Resources with a
strong background and focus in organization effectiveness, development and
training. “Partnering” with corporate senior management and business
sector heads to bring forth a new business culture, the VP will establish
HR as a strategically focused internal consulting arm to the company. The
successful candidate will have a businessperson’s perspective and a
demonstrated track record in change management, re-engineering,
leadership development and training. Respond to: M-67, P.O. Box 17182,
Philadelphia, PA 19105 EOE.
HR: Leading People, Leading Organizations
© 2003 SHRM
• “Change is the law of life, and
those who look only to the past or
present are certain to miss the
future.”
• Source: John F. Kennedy
HR: Leading People, Leading Organizations
© 2003 SHRM
Thank You
HR: Leading People, Leading Organizations
© 2003 SHRM
Questions Please
???????????????????
HR: Leading People, Leading Organizations
© 2003 SHRM
Suggested Readings
Dave Ulrich. Human Resource Champions, Harvard Business School Press.
Jeffrey A. Mello. Strategic Human Resource Management, South-Western.
Dave Ulrich & Dale Lake. Organizational Capability. John Wiley and Sons,
Becker, Huselid and Ulrich. The HR Scorecard, Harvard Business School
Press
Jim Collins. Good to Great. HarperCollins Publishers, Inc.
HR: Leading People, Leading Organizations
© 2003 SHRM
Old
New
Strategy
Advice
Strategy
Service
Advice
IT
SelfService
Service
Out
Source
Shared Services
Source: Prof. Ed Lawler, speaking at SHRM Foundation Thought Leader Conference, August, 2002
HR: Leading People, Leading Organizations
© 2003 SHRM
What HR Functions, If Any, Does Your Organization
Outsource? (Please Select All That Apply.)
Topic
Outsource
completely
Outsource
partially
Completely
in-house
401(k) Administration
33.2%
51.1%
15.7%
Employee Assistance/Counseling
64.2%
19.5%
16.3%
Retirement Planning Help
24.9%
49.4%
25.7%
Pension Administration
27.5%
45.9%
26.6%
Temporary Staffing
27.7%
44.0%
28.3%
Background Checks
40.8%
26.6%
32.5%
Training and Management
Development Programs
5.4%
51.1%
43.5%
Executive Development and Coaching
7.6%
46.6%
45.9%
Health Care Benefits Administration
13.7%
39.7%
46.6%
Note: Ofbenefit
respondents
whose organizations offer that particular
Employee
administration
7.4% function.41.5%
51.1%
SOURCE: SHRM Weekly Online Poll – July 2003
HR: Leading People, Leading Organizations
© 2003 SHRM
What HR Functions, If Any, Does Your Organization
Outsource? (Please Select All That Apply.)
Topic
Outsource
completely
Outsource
partially
Completely
in-house
Payroll
8.5%
40.1%
51.4%
Risk Management
8.5%
37.6%
53.9%
Executive Staffing
4.8%
39.3%
55.9%
Employee Relocation
18.5%
22.0%
59.5%
HRIS Selection, Training and
Implementation
4.2%
35.7%
60.1%
Recruitment
0.6%
31.3%
68.2%
Executive Compensation and Incentive
Plans
1.2%
16.1%
82.7%
Policy Writing
1.4%
13.2%
85.4%
Administration of Compensation and
Incentive Plans
1.5%
12.6%
85.9%
Note: Of respondents whose organizations offer that particular function.
Wage
and Salary Administration
SOURCE: SHRM Weekly Online Poll – July 2003
2.3%
8.6%
89.1%
HR: Leading People, Leading Organizations
© 2003 SHRM
Why Does Your Organization Outsource HR Functions?
(Please Select All That Apply.)
Choice
Count
Percent of Sample
Save Money/Reduce Operating Costs
102
26.0%
Allow Our HR Employees to Focus More on
Strategy
89
22.6%
Control Legal Risk/Improve Compliance
85
21.6%
Improve Accuracy/Flexibility/Responsiveness
71
18.1%
Take Advantage of Technological Advances Without 70
Capital Outlay
17.8%
Lack Expertise In-House
69
17.6%
Offer Services We Otherwise Could Not
66
16.8%
Allow the Company to Focus on its Core Business
57
14.5%
Other
19
4.8%
We Do Not Currently Outsource Any HR Functions
186
47.3%
HR: Leading People, Leading Organizations
© 2003 SHRM