HUMAN RESOURCES TRANSFORMATION
“HUMAN RESOURCES TRANSFORMATION”
THE ROLE OF HR IN CORPORATE
TRANSFORMATION: TIPS FOR BAD
AND UNCERTAIN TIMES
Allan Bukusi
allanbukusi@mdi.co.ke
HUMAN RESOURCES TRANSFORMATION
Key References
1.
2.
3.
4.
Deloitte learning, 2006
Hewlett Packard, 2007
PwC, HfC Research, 2012
Values Based Leadership for Transformation,
research 2013
5. Transformative CEOs in Kenya, NATION , 2013
6. How to Lead corporate transformation, 2013
allanbukusi@mdi.co.ke
HUMAN RESOURCES TRANSFORMATION
PRESENTATION AIM
• To update participants on the increasingly
changing, evolving and transforming role of
human resources leadership in corporate
transformation and business survival &
success.
allanbukusi@mdi.co.ke
HUMAN RESOURCES TRANSFORMATION
COVERAGE
1.
2.
3.
4.
What is corporate transformation?
Human resources transformation?
The role of HR in corporate transformation
Tips for good, bad & uncertain times.
allanbukusi@mdi.co.ke
HUMAN RESOURCES TRANSFORMATION
CORPORATE TRANSFORMATION
 Corporate transformation is a process of organization
renewal that facilitates the long term survival,
sustainability and success of a business.
 It is enabled by a paradigm shift in leadership
thinking or quantum leap in business operations in
response to market dynamics, environmental
changes and future trends.
allanbukusi@mdi.co.ke
-HOW TO LEAD CORPORATE TRANSFORMATION
HUMAN RESOURCES TRANSFORMATION
The qualities of a Transforming
corporate organization
1.
2.
3.
4.
5.
Remains relevant in the market
Meets the need of the public (+customers)
Provides quality services and products
Trains & mentors future leaders
“Lives” transformative values (culture)
allanbukusi@mdi.co.ke
- VALUES BASED LEADERSHIP FOR TRANSFORMATION
HUMAN RESOURCES TRANSFORMATION
DANGERS OF NOT-TRANSFORMING
1. Slide into “irrelevance”, non-responsive organization
and business.
2. Frigid bureaucracy & wasteful production.
3. Under performing, under deployed staff.
4. Declining profitability & service delivery.
5. Structural inefficiency & ineffectiveness.
allanbukusi@mdi.co.ke
-HOW TO LEAD CORPORATE TRANSFORMATION
HUMAN RESOURCES TRANSFORMATION
HUMAN RESOURCES TRANSFORMATION
• HR Transformation initially focused on making
HR operations more efficient and effective
through process standardisation and
technology.
allanbukusi@mdi.co.ke
Deloitte , 2006
HUMAN RESOURCES TRANSFORMATION
THE NEXT GEN. HR TRANSFORMATION
1. Tightly linked to corporate strategy
2. Creates business value through HR services that
address a company’s most pressing strategic
challenges.
3. Anticipates critical workforce trends,
4. Shapes and executes business strategy, identifying
and addressing people-related risks and regulations.
5. Enhancing workforce performance and productivity.
6. Offers new HR services to help a company improve
and grow.
allanbukusi@mdi.co.ke
Deloitte , 2006
HUMAN RESOURCES TRANSFORMATION
TRANSFORMING HUMAN RESOURCES
• HR Challenges
–
–
–
–
Globalization
Evolving workforce
Evolving (IT) business
Virtual management (156,000 staff, x counties & cultures)
• HR Road to transformation
– Stuck to core values
– focus on customer & product growth strategy
– Cross-functional reporting (marketing officer report to HR
manager). HR present on the work front.
– Eliminating bureaucracy
allanbukusi@mdi.co.ke
- HEWLETT PACKARD
HUMAN RESOURCES TRANSFORMATION
TRANSFORMING HUMAN RESOURCES
• Review total reward strategy
• Leadership team development
• New operating model for HR
– Operational efficiency
– Head count (reduced to minimum cost)
– Transformational not transactional staff contact
(portal)
• HR leading business transformation
– Engaging HR people on the business front
– “Transformational” training programs for all staff
allanbukusi@mdi.co.ke
- HEWLETT PACKARD
HUMAN RESOURCES TRANSFORMATION
THE QUESTION; IS HRT DRIVING
BUSINESS PERFORMANCE?
1. HR focuses on either “business” or
“administration”.
2. HR has a strategic role In business
development
3. Transformation fails because
“transformation” efforts focus on Admin.
rather than on skills development to execute
vision.
allanbukusi@mdi.co.ke
PwC, Hfc Global Research, 2012
HUMAN RESOURCES TRANSFORMATION
GLOBAL HR TRENDS
• The global workforce is evolving.
• New talent is required (tech savvy).
• HR executives become substantive organization leaders
in times of change.
• HR Transformation assumes accountability for business
success.
• No “one-size-fits-all-strategy” it must be locally and
globally specific.
• HR is challenged to make transformation real to the
business and not an “intervention” like a “systems
upgrade”, hiring or retrenchment programs.
allanbukusi@mdi.co.ke
PwC, Hfc Global Research, 2012
HUMAN RESOURCES TRANSFORMATION
DRIVING TRANSFORMATIVE
ORGANIZATIONS IN KENYA
1. Six year rule; Sustained transformative
leadership initiative.
2. Growth rule; average 50% annual growth
metrics.
3. Employ transformative strategic plans.
4. Strong philosophy, values and customer
focused culture.
allanbukusi@mdi.co.ke
-TRANSFORMATIVE CEOS , ANALYSIS
HUMAN RESOURCES TRANSFORMATION
TRANSFORMATIVE CEO: Advice
1.
2.
3.
4.
Develop Business focus
Focus on service delivery
Develop (organization) systems
Develop leaders, leadership (teamwork)
allanbukusi@mdi.co.ke
-TRANSFORMATIVE CEOs, ANALYSIS
HUMAN RESOURCES TRANSFORMATION
MAJOR LESSONS FOR HR
1. The way work is done & the workforce is evolving.
2. HR is expected provide NEW services and real time
business solutions.
3. Expected to provide strategic initiative & lead change.
4. Ensure the organization remains relevant in its
environment (keeping pace with the market).
5. “appropriate” core values sustain organization in
evolving and dynamic circumstances.
6. Effective (rigid) HR practice can unwittingly cause
corporate failure in the medium term.
allanbukusi@mdi.co.ke
HUMAN RESOURCES TRANSFORMATION
CORPORATE TRANSFORMATION
SUSTAINABLE
PURPOSE
VALUES
AUDIT
RESEARCH &
DEV.
CUSTOMER
FOCUS
ETHICAL
BUSINESS
SYSTEMS
TRANS.
STRATEGIC
PLAN
TRAINING
LEADERS
allanbukusi@mdi.co.ke
-HOW TO LEAD CORPORATE TRANSFORMATION
HUMAN RESOURCES TRANSFORMATION
HUMAN RESOURCES TRANSFORMATION
Align Co.
Values
Dev.
Bus. Sup
HR syst.
Manage
Services.
HR
Manage
Product.
Lead
Change
Train
Talent
allanbukusi@mdi.co.ke
-HOW TO LEAD CORPORATE TRANSFORMATION
HUMAN RESOURCES TRANSFORMATION
TIPS FOR “GOOD, BAD & UNCERTAIN
TIMES”
1. Start with understanding the business, not
“Retrenchment”, then decide short, medium-term
action.
2. Align reward strategy to support pursuit of corporate
goals.
3. Position organizations for (future) growth.
4. Align organization values to sustain business
performance.
5. Develop “next” generation leadership (demographics)
6. From “Institutional” HR to Business HR
7. Incorporate global outlook in local solutions
allanbukusi@mdi.co.ke
HUMAN RESOURCES TRANSFORMATION
Sources
•
•
•
•
•
•
•
Onyango, Cultural gap & economic crisis in Africa, 2010
Kiiru, et al, Successful fundraising,2011
Kirimi & Minja, Transformational corporate leadership, 2012
Bukusi, How to lead corporate transformation, 2013
Burns MJ, Leadership, 1978
Transformative CEOs with golden hands, Sunday nation 30th June 2013
http://www.deloitte.com/view/en_cn/cn/42a8b3d77f1fb110VgnVCM1000
00ba42f00aRCRD.htm
• http://www.pwc.com/us/en/peoplemanagement/publications/assets/pwc-hfs-hr-transform.pdf
• http://www.hp.com/hpinfo/execteam/speeches/perezdealonso/07confbo
ard.html
• http://allanbukusiauthor.blogspot.com/2013/05/what-is-corporatetransformation.html
allanbukusi@mdi.co.ke