Moving from Cost Center
to Strategic Business Partner
Clint Tripodi
Overview of the Session
• The Evolution of HRM.
• HR as a Cost Center... Why Should I Care?
• Kill the Status Quo.
• Becoming Strategic.
• Asking the Right Questions.
• Traits of Successful Strategic HR Leaders.
April 29, 2014
2
What Would You
Have Done?
• Last Year, Zappo’s CEO, Tony Hsieh Decided to
add a Fourth ‘C’ to Zappo’s Brand of Clothing,
Customer Service, and Company Culture.
▫ The Fourth ‘C’ is Now Community.
April 29, 2014
3
What Would You
Have Done?
• When and How Would HR’s Involvement
Bring the Greatest Business Value with this
Scope of Decision and Change?
April 29, 2014
4
Evolution of HRM
“Strategic
Business
Partner”
“Human
Resource
Management”
“Personnel
Management”
“Labour
Manager”
“Welfare
Officer”
1890’s - 1913
1914 - 1939
1940 - 1979
1980 – 1990’s
2000 & Beyond
April 29, 2014
5
HR Model for 2014+
Structure - Identifying and Developing Roles
and Responsibilities to Execute Strategies.
April 29, 2014
6
HR Model for 2014+
Processes – Utilizing Best Practices to
Achieve Predictable Business Results.
April 29, 2014
7
HR Model for 2014+
Talent – Attracting, Aligning, Developing
and Retaining the Right People to Execute
Your Business Strategy.
April 29, 2014
8
HR Model for 2014+
Metrics – The Ongoing Performance
Indicators that Drive Business Success.
April 29, 2014
9
HR Model for 2014+
Strategy – The Data Driven Plans
Designed to Help You Compete in
Current and Future Markets.
April 29, 2014
10
HR Model for 2014+
Strategy
Improving
Bottom Line
Performance
Metrics
Structure
Top Line Growth
People Systems
Talent
Processes
April 29, 2014
11
What Gets in the Way of
Being Strategic?
April 29, 2014
12
You Must Believe
You Are Worthy
• Courage: To Be Imperfect.
• Compassion: Be Kind to Yourself
and to Others.
• Connection: As a Result of
Authenticity, Be Who You Are, Not
Who You Think You Should Be.
April 29, 2014
13
Vulnerability is the
Birthplace of…
April 29, 2014
14
Becoming Strategic…
• Start Testing the Roots of Your Vulnerability.
• Challenge Your Creativity.
• Seize the Opportunity: Take Control & Act Now!
• Think Like a Business Person First.
• Perfect Market Conditions for New Ideas.
Companies Need Our Guidance & Direction.
April 29, 2014
15
P = R - C
Revenue
–
Cost
= Profit
April 29, 2014
16
HR is a Cost Center
• Department That Costs Money.
• Marketing, Finance, HR, IT, R&D are
Examples of Cost Centers.
• First Targets for Downsizing.
April 29, 2014
17
Cost Structure
• General & Administrative:
▫ G & A is 20 - 35% of Revenue.
▫ Perception that These Departments
Add Little or No Value.
Deloitte Consulting LLP (2010)
April 29, 2014
18
Cost Structure
• The Key is a Strategic Approach:
▫ Delivers Major Structural Breakthroughs.
▫ Not Just Incremental Improvements.
Deloitte Consulting LLP (2010)
April 29, 2014
19
Kill the Status Quo
5 Key Challenges Faced by HR Today:
• Perceived Lack of Power and Influence.
• Walking a Tightrope (Balancing Act).
• Dealing with Skeptics of HR.
• Fear of Vulnerability.
• Being Overwhelmed.
SOURCES: CFO Research Services (2003) & Kahnweiler (2006)
April 29, 2014
20
Influence Starts at the Top
• Boards of Directors have
Differed Widely in the Extent
of Utilization or Reliance on
the HR Leader in the Strategy
of the Organization.
SOURCES: CFO Research Services (2003) & Kahnweiler (2006)
April 29, 2014
21
• HR Reports to the CEO
in Only About 52% of
Companies.
SOURCES: CFO Research Services (2003) & Kahnweiler (2006)
April 29, 2014
22
• HR Reports to the COO
in About 17% and to the
CFO in About 13% of the
Cases.
SOURCES: CFO Research Services (2003) & Kahnweiler (2006)
April 29, 2014
23
Competing Priorities of
Human Resources
Strategic
Focused
Strategic
Focused
Transaction
Focused
Transaction
Focused
SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE
April 29, 2014
24
We Have the Power!
HR is the Only Function with a “License” to
Interrelate with Every Employee and Every
Function in the Company and Beyond.
How Are You Going to Make the Most of
the Responsibility You Have Been Given?
April 29, 2014
25
Strategic Engagement
Engagement Continuum
vs.
Early
More Opportunity
Time of Engagement
Late
Some
Little/Execute
• Strategic Partnering Starts with Engagement.
• Earlier Engagement Maximizes Opportunity
to Influence and be Strategic.
April 29, 2014
26
Strategic HR
Professionals are
Curious and Ask
the Right
Questions
April 29, 2014
27
Strategic HR: Asking
the Right Questions
•
•
•
•
•
•
•
•
Leadership
Culture
Communication and Engagement
Workforce Planning
Talent
Retention
Performance Management
Team Development
April 29, 2014
28
Be a Trusted Advisor:
• Outsource the Delivery of
Transactional Services.
• Develop the Internal Consulting
Skill Sets that Enable the
Transformational Part of HR.
SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE
April 29, 2014
29
“HR Person Know Thyself”
Profession
Influence
Art
vs.
Science
Boardroom
vs.
Department
HR Challenges
Transactional
vs.
Transformational
Enforcer
vs.
Advocate
Skills
Perception
SOURCE: Richard M. Vosburgh, Mirage Resorts, MGM MIRAGE
April 29, 2014
30
The Future
Belongs to
Strategic HR Leaders!
April 29, 2014
31
Mark Onetto
Sr. VP WW Ops
“Do good for our customers and
they will do good for us”
Amazon’s Business Plan
“Head without Heart is Hopeless”
“Technology without People is Hopeless”
“Strategy without Execution is Hopeless”
“Perfection is not of this World”
April 29, 2014
32
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ Focus on Business Principles and the
Employee/Company Well-Being.
April 29, 2014
33
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ Constantly Think As If from the Outside.
April 29, 2014
34
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ Demonstrate a Strong Competitive
Drive and Passion.
April 29, 2014
35
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ Are Motivated by Doing the Right Thing
for the Organization.
April 29, 2014
36
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ Believe that Success in Relationships is
Tied to the Accumulation of Quality
Experiences.
April 29, 2014
37
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ Embrace Effective Technology and
Practices.
April 29, 2014
38
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ Understand that a Continued Focus
on Problem Definition and Resolution
is More Important than Technical or
Content Mastery.
April 29, 2014
39
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ Believe that Both Selling and Serving
are Aspects of Professionalism.
April 29, 2014
40
Traits of Successful
Strategic HR Leaders
• Strategic HR Professionals Demonstrate
Predictable Characteristics:
▫ The Successful Strategic HR Professional
is Selfless, Authentic and Real.
April 29, 2014
41
April 29, 2014
42
For more information or to receive a copy of this
presentation, feel free to contact Clint Tripodi at:
clint@pendolinogroup.com or 707-812-2555.
Thank you!
April 29, 2014
43
Q&A
April 29, 2014
44
Thank you!
For more information or to receive a copy of this
presentation, feel free to contact Clint Tripodi at:
Clint PendolinoGroup.com or 707-812-2555.