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PROCESS STEPS TO SUCCESSFUL HUMAN
RESOURCES BUSINESS PARTNERING
(HRBP)
CHARLES COTTER
12 JUNE 2014
PALAZZO HOTEL, MONTECASINO
SCOPE OF PRESENTATION
• Defining the fundamental concepts
• Diagnosis of current HRBP organizational practices (health
check)
• Building a business case for HRBP (strategic imperative)
• Business Executives expectations and priorities
• Enablers and critical success factors to transforming/re-
positioning HRBP
• The 5-step HRBP strategy
DEFINING THE FUNDAMENTAL
CONCEPTS
• Partnership
• Business Partner
• Strategic Business Partner
DEFINING HR BUSINESS PARTNERING
• Partnership: A relationship between individuals or groups
characterized by mutual co-operation and responsibility, for the
achievement of a specified shared goal.
• HR business partners are HR professionals who work closely with
an organization’s senior leaders in order to develop an HR agenda
that closely supports the overall aims of the organization. The
process of alignment is known as HR business partnering.
• Strategic business partners: A long-term relationship (alliance) to
achieve defined objectives common to all partners. In the context
of strategic human resource management, the HR function and
activities are intended to ensure the organization's financial success
and prosperity (business continuity).
DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR HRBP
• #1 Embedding HRM strategy in business strategy and able to translate
that strategy into deliverable actions
• #2 Well-defined, implemented and reported HRM performance and ROI
metrics (creating credibility and accountability)
• #3 Generating business intelligence e.g. predictive and strategic analytics
(that shapes, informs, guides and ultimately, influences strategic business
decisions)
• #4 Offering a professional, value-adding business proposition sensitive
to and supportive of business needs, interests and strategic priorities
• #5 Ongoing line management consultation, engagement, coaching and
building trusting, collegial and mutually beneficial business relationships
DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR HRBP
• #6 HR Management and practitioners possess business and
industry knowledge, acumen and insight
• #7 HRM collaborates with line management to broker
meaningful and impactful business solutions
• #8 HRM processes, systems and practices are horizontally
integrated (bundled), agile, responsive and stream-lined (that
enhance productivity and efficiency)
• #9 HRM is a transformational initiator, driver and implementer
of business change
• #10 HRM is technology-savvy innovator, enabling and leveraging
best practices (e.g. CoE; Shared Services and e-HRM)
RESEARCH-BASED HRBP MATURITY
(HAY GROUP)
• Only 34% believe HR is making a significant
strategic contribution to their organization; the
majority (60%) positioned themselves
somewhere in the middle
• Only 36% say talent management and
organizational effectiveness are closely aligned
• Slightly more than 39% say they have moved
away from traditional silos, but this leaves 61%
that haven’t – or worse still, are unsure.
RESEARCH-BASED HRBP MATURITY
(OTHER)
• Research shows that HR business partners
have a presence in 43% of high-performing
organizations (i4cp)
• The 2013 Global Assessment Trends Report
(GATR) - SHL.com found that 41% of firms
surveyed are confident that their human
capital strategy is properly embedded in their
organizational strategy.
STRATEGIC IMPERATIVE OF HRBP:
QUOTES
• “As market demands continue to change, organizational success will hinge on HR’s
ability to connect human capital decisions with business strategy. HR will need to
stop clinging to traditional processes and inefficient silos and move toward an
integrated approach that links work and people to business results. Such change
is critical if HR is to transition to its rightful place of strategic business partner.”
(Phil Johnson, Hay Group’s global head of work measurement)
• “If the HR role in an organization is not transforming itself to align with forward
thinking practices, executive leadership must ask HR leaders some tough
questions. Today’s organizations cannot afford to have an HR function that fails to
contribute to and lead modern thinking.” (Erna Oldenboom, Director of the “HR
As A Strategic Business Partner Programme”, UCT Graduate School Of Business)
• “Business Partners also need to play a leading role in influencing key business
decisions and managing people-related risk and compliance whilst continuing to
focus on innovative responses to the talent challenges that we experience in
South Africa. “ (Deloitte, 2013)
• “Valuable HR Business Partnering is about delivering tangible outputs that
support the achievement of shared business goals.” (Deloitte, 2011)
REALITY CHECK
• The business context within which HRBPs operate has
changed radically.
• The extreme conditions, competition and need for
lower costs have had multiple effects on organizations
and the work of HR.
• V-U-C-A
• VUKA! (Wake up, Come Alive!)
EXPECTATIONS AND PRIORITIES OF
BUSINESS EXECUTIVES
• CEO’s expect the Human Resources function to play a much
more active and participatory role in enabling business
strategies.
• Senior business leaders consider talent to be perhaps the
critical factor in the push for sustainable growth and the
need to manage new opportunities and risks in a more
complex and interdependent world.
• According to The Conference Board CEO Challenge (2013),
Human Capital is rated 10% higher than operational
excellence as a major challenge for businesses.
WHAT BUSINESS EXECUTIVES ARE
LOOKING FOR IN HRBP?
• Catalytic Driver of Change
• Pro-active Business Thinker
• Collaborative Consultant
• Purpose-directed Coach
• Delivery (results-oriented HR practices)
• (Credible and Accountable) Performance Advisor
• Strategic Facilitator
Hrm business partnering 12 june 2014
ENABLERS OF TRANSFORMATION/RE-POSITIONING TO
HRBP – “RIGHTING THE SHIP”
• “HR needs to follow the right process, applying the right skills, in
the right manner/method, fulfilling the right roles, for the right
reasons, to achieve the right results.” (Cotter, 2014)
 Competencies
 Roles
 Process
 Trends
 Critical Success Factors
 Approach
ULRICH’S SIX COMPETENCIES FOR HR
TRANSFORMATION (2009)
• Credible Activist
• Strategic Positioner
• Capability Builder
• Change Champion
• HR Innovator and Integrator
• Technology Proponent
BEST PRACTICE HRBP
(COMPETENCE)
HRM
CONTENT
BUSINESS
CONTEXT
HRBP
PROCESS
(TRADITIONAL) ULRICH’S 4 STRATEGIC
ROLES (1997)
• Strategic Partner
• Administrative Expert
• Change Agent
• Employee Champion
(CONTEMPORARY) PENTAGONAL
STRATEGIC VALUE-ADDING ROLES
• Self Mastery
• Relationship Management
• HR Expertise
• Business Acumen
• Execution
FUTURE-FOCUSED ROLES
HRBP TRENDS
• Optimization of systems, processes and structures (architecture)
• Re-organizing HR service delivery and operating models e.g.
Shared Services
• Sourcing “Stars” from outside HRM
• Implementation of HR Academies and Business Partner training
programmes
• There is a particular focus on developing consulting, project and
change management skills as well as general business and
commercial acumen
• Establishing HR Centres of Excellence/Expertise (CoE’s)
HR CENTRES OF EXCELLENCE
HRBP CRITICAL SUCCESS FACTORS
• Strategic focus and thrust (on issues that contribute to business growth
and competitiveness)
• Adopting a “big picture” perspective (regarding the organization’s
priorities and goals)
• Having personal impact and credibility (to influence key decision-makers)
• Adopting an Key Account Management, (internal) client-centric approach
• Possessing a set of value-adding skills and knowledge (customers and
business)
• Being a diplomat and negotiator (in harmonizing the HRM agenda with
business needs)
HARMONIZATION OF HR AGENDA
AND BUSINESS GOALS
1. STRATEGIC BUSINESS GOALS
AND PRIORITIES
= BUSINESS
IMPACT AND
RESULTS
3. FORMULATION OF HRM
DELIVERY TARGETS
2. HR AGENDA
AND
PROGRAMMES
HRBP STRATEGY APPROACHES
• Best Practice
• Best Fit
• Hybrid (integration)
Hrm business partnering 12 june 2014
STRATEGIC ACTION STEPS/PLAN TO
TRANSFORM HR INTO HRBP
• Step 1: Strategic Review and Analysis
• Step 2: Strategic Role Clarification and Contracting
• Step 3: Formulation and Development of
Transformational Strategies
• Step 4: Implementation of Transformational Strategies
• Step 5: Measure and evaluate business impact and
results
STEP 1: STRATEGIC REVIEW AND ANALYSIS
• Objective: The focus of the analysis should be on understanding the
needs of the business as a sustainable entity, its strategic direction
and identifying initiatives that will help your business grow.
• Review of current HRM and business strategies
• Identification of resources and capabilities
• Tools:
 Environmental scan (PESTEL)
 Gap Analysis
 S-W-O-T Analysis
STEP 2: STRATEGIC ROLE CLARIFICATION AND
CONTRACTING
• Objective: The concluding of Service Delivery
Agreements with line/operational and
senior/executive management
• Consultation, engagement and communication with
operational management
• Clarification of expectations, needs and value-adding
roles of HRBP
• Contracting agreements
STEP 3: FORMULATION AND DEVELOPMENT OF
TRANSFORMATIONAL STRATEGIES
• Objective: Development of HRBP transformation strategic plan
• Formulation of goals and objectives
• Development of alternative transformational strategies
• Choice of most appropriate strategies
 Viability
 Feasibility
 Sustainability
STEP 4: IMPLEMENTATION OF
TRANSFORMATIONAL STRATEGIES
• Project-based, cross-functional team approach
• Organizing, assigning and deploying resources
• Leading and directing (the implementation
process)
• Monitoring and Controlling
STEP 5: MEASURE AND EVALUATE BUSINESS
IMPACT AND RESULTS
• Measure and calculate the ROI
• Aspire to continuous improvement processes
• Amend and review strategies (remediation
action)
• Report back to business partners (to
demonstrate transparency and accountability)
SUMMARY
• Key points
• Questions
CONTACT DETAILS
• CHARLES COTTER
• 084 562 9446
• charlescot@polka.co.za
• LINKED IN
• TWITTER: Charles_Cotter

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Hrm business partnering 12 june 2014

  • 1. PROCESS STEPS TO SUCCESSFUL HUMAN RESOURCES BUSINESS PARTNERING (HRBP) CHARLES COTTER 12 JUNE 2014 PALAZZO HOTEL, MONTECASINO
  • 2. SCOPE OF PRESENTATION • Defining the fundamental concepts • Diagnosis of current HRBP organizational practices (health check) • Building a business case for HRBP (strategic imperative) • Business Executives expectations and priorities • Enablers and critical success factors to transforming/re- positioning HRBP • The 5-step HRBP strategy
  • 3. DEFINING THE FUNDAMENTAL CONCEPTS • Partnership • Business Partner • Strategic Business Partner
  • 4. DEFINING HR BUSINESS PARTNERING • Partnership: A relationship between individuals or groups characterized by mutual co-operation and responsibility, for the achievement of a specified shared goal. • HR business partners are HR professionals who work closely with an organization’s senior leaders in order to develop an HR agenda that closely supports the overall aims of the organization. The process of alignment is known as HR business partnering. • Strategic business partners: A long-term relationship (alliance) to achieve defined objectives common to all partners. In the context of strategic human resource management, the HR function and activities are intended to ensure the organization's financial success and prosperity (business continuity).
  • 5. DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR HRBP • #1 Embedding HRM strategy in business strategy and able to translate that strategy into deliverable actions • #2 Well-defined, implemented and reported HRM performance and ROI metrics (creating credibility and accountability) • #3 Generating business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions) • #4 Offering a professional, value-adding business proposition sensitive to and supportive of business needs, interests and strategic priorities • #5 Ongoing line management consultation, engagement, coaching and building trusting, collegial and mutually beneficial business relationships
  • 6. DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR HRBP • #6 HR Management and practitioners possess business and industry knowledge, acumen and insight • #7 HRM collaborates with line management to broker meaningful and impactful business solutions • #8 HRM processes, systems and practices are horizontally integrated (bundled), agile, responsive and stream-lined (that enhance productivity and efficiency) • #9 HRM is a transformational initiator, driver and implementer of business change • #10 HRM is technology-savvy innovator, enabling and leveraging best practices (e.g. CoE; Shared Services and e-HRM)
  • 7. RESEARCH-BASED HRBP MATURITY (HAY GROUP) • Only 34% believe HR is making a significant strategic contribution to their organization; the majority (60%) positioned themselves somewhere in the middle • Only 36% say talent management and organizational effectiveness are closely aligned • Slightly more than 39% say they have moved away from traditional silos, but this leaves 61% that haven’t – or worse still, are unsure.
  • 8. RESEARCH-BASED HRBP MATURITY (OTHER) • Research shows that HR business partners have a presence in 43% of high-performing organizations (i4cp) • The 2013 Global Assessment Trends Report (GATR) - SHL.com found that 41% of firms surveyed are confident that their human capital strategy is properly embedded in their organizational strategy.
  • 9. STRATEGIC IMPERATIVE OF HRBP: QUOTES • “As market demands continue to change, organizational success will hinge on HR’s ability to connect human capital decisions with business strategy. HR will need to stop clinging to traditional processes and inefficient silos and move toward an integrated approach that links work and people to business results. Such change is critical if HR is to transition to its rightful place of strategic business partner.” (Phil Johnson, Hay Group’s global head of work measurement) • “If the HR role in an organization is not transforming itself to align with forward thinking practices, executive leadership must ask HR leaders some tough questions. Today’s organizations cannot afford to have an HR function that fails to contribute to and lead modern thinking.” (Erna Oldenboom, Director of the “HR As A Strategic Business Partner Programme”, UCT Graduate School Of Business) • “Business Partners also need to play a leading role in influencing key business decisions and managing people-related risk and compliance whilst continuing to focus on innovative responses to the talent challenges that we experience in South Africa. “ (Deloitte, 2013) • “Valuable HR Business Partnering is about delivering tangible outputs that support the achievement of shared business goals.” (Deloitte, 2011)
  • 10. REALITY CHECK • The business context within which HRBPs operate has changed radically. • The extreme conditions, competition and need for lower costs have had multiple effects on organizations and the work of HR. • V-U-C-A • VUKA! (Wake up, Come Alive!)
  • 11. EXPECTATIONS AND PRIORITIES OF BUSINESS EXECUTIVES • CEO’s expect the Human Resources function to play a much more active and participatory role in enabling business strategies. • Senior business leaders consider talent to be perhaps the critical factor in the push for sustainable growth and the need to manage new opportunities and risks in a more complex and interdependent world. • According to The Conference Board CEO Challenge (2013), Human Capital is rated 10% higher than operational excellence as a major challenge for businesses.
  • 12. WHAT BUSINESS EXECUTIVES ARE LOOKING FOR IN HRBP? • Catalytic Driver of Change • Pro-active Business Thinker • Collaborative Consultant • Purpose-directed Coach • Delivery (results-oriented HR practices) • (Credible and Accountable) Performance Advisor • Strategic Facilitator
  • 14. ENABLERS OF TRANSFORMATION/RE-POSITIONING TO HRBP – “RIGHTING THE SHIP” • “HR needs to follow the right process, applying the right skills, in the right manner/method, fulfilling the right roles, for the right reasons, to achieve the right results.” (Cotter, 2014)  Competencies  Roles  Process  Trends  Critical Success Factors  Approach
  • 15. ULRICH’S SIX COMPETENCIES FOR HR TRANSFORMATION (2009) • Credible Activist • Strategic Positioner • Capability Builder • Change Champion • HR Innovator and Integrator • Technology Proponent
  • 17. (TRADITIONAL) ULRICH’S 4 STRATEGIC ROLES (1997) • Strategic Partner • Administrative Expert • Change Agent • Employee Champion
  • 18. (CONTEMPORARY) PENTAGONAL STRATEGIC VALUE-ADDING ROLES • Self Mastery • Relationship Management • HR Expertise • Business Acumen • Execution
  • 20. HRBP TRENDS • Optimization of systems, processes and structures (architecture) • Re-organizing HR service delivery and operating models e.g. Shared Services • Sourcing “Stars” from outside HRM • Implementation of HR Academies and Business Partner training programmes • There is a particular focus on developing consulting, project and change management skills as well as general business and commercial acumen • Establishing HR Centres of Excellence/Expertise (CoE’s)
  • 21. HR CENTRES OF EXCELLENCE
  • 22. HRBP CRITICAL SUCCESS FACTORS • Strategic focus and thrust (on issues that contribute to business growth and competitiveness) • Adopting a “big picture” perspective (regarding the organization’s priorities and goals) • Having personal impact and credibility (to influence key decision-makers) • Adopting an Key Account Management, (internal) client-centric approach • Possessing a set of value-adding skills and knowledge (customers and business) • Being a diplomat and negotiator (in harmonizing the HRM agenda with business needs)
  • 23. HARMONIZATION OF HR AGENDA AND BUSINESS GOALS 1. STRATEGIC BUSINESS GOALS AND PRIORITIES = BUSINESS IMPACT AND RESULTS 3. FORMULATION OF HRM DELIVERY TARGETS 2. HR AGENDA AND PROGRAMMES
  • 24. HRBP STRATEGY APPROACHES • Best Practice • Best Fit • Hybrid (integration)
  • 26. STRATEGIC ACTION STEPS/PLAN TO TRANSFORM HR INTO HRBP • Step 1: Strategic Review and Analysis • Step 2: Strategic Role Clarification and Contracting • Step 3: Formulation and Development of Transformational Strategies • Step 4: Implementation of Transformational Strategies • Step 5: Measure and evaluate business impact and results
  • 27. STEP 1: STRATEGIC REVIEW AND ANALYSIS • Objective: The focus of the analysis should be on understanding the needs of the business as a sustainable entity, its strategic direction and identifying initiatives that will help your business grow. • Review of current HRM and business strategies • Identification of resources and capabilities • Tools:  Environmental scan (PESTEL)  Gap Analysis  S-W-O-T Analysis
  • 28. STEP 2: STRATEGIC ROLE CLARIFICATION AND CONTRACTING • Objective: The concluding of Service Delivery Agreements with line/operational and senior/executive management • Consultation, engagement and communication with operational management • Clarification of expectations, needs and value-adding roles of HRBP • Contracting agreements
  • 29. STEP 3: FORMULATION AND DEVELOPMENT OF TRANSFORMATIONAL STRATEGIES • Objective: Development of HRBP transformation strategic plan • Formulation of goals and objectives • Development of alternative transformational strategies • Choice of most appropriate strategies  Viability  Feasibility  Sustainability
  • 30. STEP 4: IMPLEMENTATION OF TRANSFORMATIONAL STRATEGIES • Project-based, cross-functional team approach • Organizing, assigning and deploying resources • Leading and directing (the implementation process) • Monitoring and Controlling
  • 31. STEP 5: MEASURE AND EVALUATE BUSINESS IMPACT AND RESULTS • Measure and calculate the ROI • Aspire to continuous improvement processes • Amend and review strategies (remediation action) • Report back to business partners (to demonstrate transparency and accountability)
  • 33. CONTACT DETAILS • CHARLES COTTER • 084 562 9446 • charlescot@polka.co.za • LINKED IN • TWITTER: Charles_Cotter