Slides by Marius Meyer, CEO #SABPP: Strategic HRM with impact: From Strategy to Execution @DistinctiveCons

1. STRATEGIC HR MANAGEMENT WITH IMPACT:
FROM STRATEGY TO EXECUTION
Marius Meyer, CEO: SABPP
10 October 2014, Hararemarius@sabpp.co.za
@MariusSABPP & @SABPP1

2. The need for Strategic HRM
“If HR does not force its way into the heart of strategic planning in an organisation, it will default into a technical and transactional dead end.”
Helen Drinan, Former CEO: SHRM

3. The role of HR …

4. IBM CEO Study 2012: Factors impacting organisations
1
Technology factors (71%)
2
People skills (69%)
3
Market factors (68%)
4
Macro-economic factors
5
Regulatory concerns
6
Globalisation
7
Socio-economic factors
8
Environmental issues
9
Geopolitical factors
IBM CEO Study 2012

5. • Identifying talent issues before they impact the
business
• Adjusting HR strategies to respond to changing
business needs
• Understanding how HR business partners can
support the business
The results of our research indicated that our top three priority
CCR’s include the following:
SABPP Strategic Vision
“To Professionalise the HR Profession”
SABPP - ETQA
SABPP – Registration
Committee
HRD
Committee
Business
Leader’s
Expectations
OR
Critical Customer
Requirements
(CCR’s)
Key HR Business
Partner Outputs
Competencies
Career Paths
Learning Solutions
Communicating organisational culture/values to Employees 1
Keep abreast of new legislation that may impact on business 1
Preparing for different situations 1
Responding to organisational changes 2
Managing conflict between managers 2
Assessing Employee attitudes 2
Enforcing standard HR policies and procedures 3
Resolving political problems in the execution of business plans 3
Respond to manager needs 4
Retention of talent within the business 4
Capacity building/Skills development 5
Quickly responding to employee needs 6
Communication around HR in general 6
Tracking trends in employee behaviours and attitudes. 11
Keep the line updated on HR initiatives 11
Prioritizing across HR Needs 13
Utilising new business strategies 25
Developing the next generation of leaders 30
Identifying talent issues before they can impact on the business 32
Identifying HR Metrics 35
Adjusting HR strategies to respond to changing business needs 42
Understanding how HRB’s can support the business 43
Redesigning Organisational Structure around strategic objectives 48
Understanding the Talent needs of the business 54
CCR TOTAL

6. PARADIGM SHIFT
OPERATIONAL MINDSET
•Day-to-day tasks
•Transactional HR
•Getting things done
•Crisis reactive management
•Doing things now
•Training for tasks
•Managing people
•Internal focus
•Short-term measures
STRATEGIC THINKING
•Long term priorities
•Transformational HR
•Creating value
•Proactive management
•Planning things for future
•Organisational capability
•Leading people
•External focus
•Strategic measures -metrics

7. The strategic dilemma
“How can you strategise for the future, when you can’t see beyond 18 months?”
Fast Company Magazine

8. Why Bother?
•The alternative to strategising is to take change as it comes and deal with contingencies

9. HR Trends
•HR as Strategic Partner and Talent Management
•HR Governance
•HR Risk Management
•New role to impact ethics in organisations
•HR contribution to CSR and socio-economic situation -sustainability
•HR Technology and Social Media
•HR standards and metrics –integrated reporting
•HR Competency models -professionalism

10. Biggest Opportunities for HR
IBM: Working beyond Borders
•Cultivating creative leaders
•Mobilising for greater speed and flexibility
•Capitalising on collective intelligence i.e. collaboration

11. Most important organisational capabilities over the next five years
IBM: Working beyond Borders
31%
33%
34%
37%
28%
30%
32%
34%
36%
38%
Innovation
Client connectivity
Execution speed
Leadership

12. Top facts about HR
•Human Capital is the biggest concern for CEOs (PwC).
•Only 18% of CEOs feel confident that they have the right people in place to execute strategy (CEB).
•Human Capital is the biggest risk in business (HCI Africa).
•Skills crisis is the top obstacle to economic growth.
•Strikes cost SA R197 million per day.

13. More facts about HR
•SA losing R12 billion a year due to absenteeism.
•Only 5% of employees understand business strategy.
•World-wide only 13% of employees actively engaged.
•Companies with engaged employees outperform others by 202% (Dale Carnegie).
•Companies with good HR Practices outperform others by treating HR as critical business function, these companies are 105% more profitable.
•Average ROI on wellness programmes: 300%.

14. BUSINESS STRATEGY –HR BUSINESS ALIGNMENT
❶Strategic
HRM
❷Talent
Management
❸HR Risk
Management
HR ARCHITECTURE
HR VALUE &
DELIVERY PLATFORM
❹ Work- force
planning
❺
Learning
❻
Perfor- mance
❼
Reward
❽
Well- ness
❾
ERM
❿
OD
⓫HR Service Delivery
⓬
HR Technology
(HRIS)
Prepare
Imple-
ment
Review
Improve
⓭HR MEASUREMENT
HR Audit: Standards & Metrics
H R C O M P E T E N C I E S
SABPP HRM SYSTEM STANDARDS MODEL

15. HR/Line relationship?

16. STRATEGIC HR MANAGEMENT STANDARD
DEFINITION
Strategic HR Management is a systematic approach to developing and implementing long-term HRM strategies, policies and plans that enable the organisation to achieve its objectives.
SABPP (2013)

17. STRATEGIC HR MANAGEMENT STANDARD
OBJECTIVES
1.2.1 To ensure the HR strategy is derived from and aligned to the organisation’s objectives in consultation with key organisational stakeholders.
1.2.2 To analyse the internal and external socio-economic, political and technological environment and provide proactive people-related business solutions.
1.2.3 To provide strategic direction and measurements for strategic innovation and sustainable people practices.
1.2.4 To provide a foundation for the employment value proposition of the organisation.
1.2.5 To establish a framework for the HR element of the organisation’s governance, risk and compliance policies, practices and procedures which balance the needs of all stakeholders.
1.2.6 To determine an appropriate HR structure, allocate tasks and monitor the development of HR competence to deliver HR strategic objectives.
SABPP (2013)

18. STRATEGIC HRM STANDARD ELEMENT: IMPLEMENTATION
Framework of HR policies & programmes
Environmental scan (PESTL)
HR structure, service model and capability development
People strategy
HR strategic agenda
Organisation’s strategic intent
HR strategic agenda
HR business plan
People strategy
Allocate roles & responsibilities (line/HR/support functions)
MONITOR & EVALUATE

19. The Meaning of Strategy
Adaptation of the Business Motivation Model
Means
Mission
Strategy
Tactics
Course of Action
Processes
Structure
Enablers
Ends
Vision
Goals
Objectives
Desired Result
makes operative
amplified by
quantified by
planned by means of
implemented by
enabled by
External social, technological, environmental, economic, political, legal, market and shareholder requirements
Technology
Benefits Realisation
should be
aligned to
Measuring Strategy execution

20. Typical strategic HR process
Planning &
preparing process
HR vision &
mission
Formulate
strategies
Long term HR
goals
Environment
scanning
HR analysis
Implementation/
deployment
Monitor &
evaluate
Strategic
alignment

21. Organisation Strategy
Corporate Scorecard Business Design
(Operating Model & Value
Chain)
Organisation Design
Business Processes Work Design
Process Activities Job Design
Deployed Scorecards
Personal Scorecards
Personal Level Tactical Level Strategic Level

22. THE ESSENCE OF HR IS TO ACHIEVE THE TWO TOP HR PRIORITIES
•Employee engagement
•Employee performance (business results)
If you don’t spend 90% of your time working actively and passionately with management and employees on these two HR priorities, you are wasting your time.
If your HR practices are not focused on these two priorities, you are not adding value to the organisation.

23. Strategic Analysis
WEAKNESSES
•Low visibility of HR
•Poor communication
•Lack of technology
•Low satisfaction levels
OPPORTUNITIES
•Local skills development
•Stronger talent pipeline
•Alliances in countries
•E-learning
RISKS
•Safety of staff
•Political risk -countries
•Regulatory challenges
•Capacity to deliver
•Employee retention
STRENGTHS
•Good learning centre
•Clear talent pools
•Ethical culture
•Sound leadership
•Great team of expats

24. Do you manage HR risk?

25. Activity
1.What are the current strengths of your HR Strategy?
2.What are the areas for improving your HR Strategy?

26. How to become a strategic thinker
•Know the strategy of your business
•Study the strategies of other businesses
•Read more about strategy
•Internalise the annual report of your company
•Identify HR opportunities from the strategy
•Put your strategy on one page
•Develop an HR Risk Framework
•Do proper HR analytics and metrics

27. The execution gap

28. From strategy to execution
•Make HR strategy visible.
•Convert HR strategy to specific action plans to be executed –clear priorities.
•Clear lines of responsibility and accountability.
•Cascade overall strategic measures to team & individual performance management.
•Build a high performance execution culture.
•Review and monitor execution of strategy.
•Identify and resolve problems as they arise.

29. Value Chain in Context

30. Activity
1.Identify current gaps between HR strategy & execution at your organisation.
2.How can these gaps be filled?

31. HR strategy: It is all about alignment & execution

32. Conclusion
HR professionals need to move from an operational to a strategic mindset. But we need to ensure that our HR strategies are executed. Thank you for joining us on the journey towards high impact strategic HR thinking, plans and results.

33. Let us build our organisations with sound strategic HR Management!
professional@sabpp.co.za(Professional Registration)
xolani@sabpp.co.za(Operations)
kenneth@sabpp.co.za(Stakeholder Relations)
penny@sabpp.co.za(Research)
naren@sabpp.co.za(Learning & Quality)
marius@sabpp.co.za(Strategy inputs)
voice@sabpp.co.za(Social media)
Website : www.sabpp.co.za
Office: 8 Sherborne Str, Parktown, South Africa
Tel: +27 11 045 5400 Fax: +27 11 482-4830
Cel: 082 859 3593 (Marius Meyer)