HRs New Role Becoming a Strategic Business Partner

1
HRs New Role Becoming a Strategic Business
Partner

• November 2005

ODN National Conference Minneapolis
William Pasmore New York
2
Overview

• Brief Description Of Mercer Delta Consulting
  (MDC)
• HR Transformation and the Evolution of the HR
  Business Partner Concept
• What It Takes to Be An Effective HR Business
  Partner
• Using Diagnosis to Transform Relationships and
  Opportunities
• Staying Focused on Issues that Matter to the
  Business
• Delivering Changes That Make a Real Difference
• Some Examples of Doing It Well
• Next Steps

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Mercer Delta Clients

• Executive leadership at the public-company/enterpr
  ise level
• Includes CEOs, COOs, Executive Teams, and Boards
• Relationships extend out into the organization
• 1 billion enterprises and smaller high-growth
  companies
• Recognizing the need for change
• Aware of own limitations
• Looking for assistance

4
Illustrative Client Companies
s
5
Creating Knowledge
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HR Transformation and the Evolution of the HR
Business Partner Concept
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The Promise of HR Transformation

• Substantial cost savings through the automation
  and outsourcing of routine transactional work and
  the creation of shared services
• More complete, accurate, and useful information
  management through the creation of comprehensive,
  all-encompassing databases and HRIS systems
• Enhanced accessibility and self-service through
  24/7 online and call center support for routine
  operations
• Uniform policy application across locations due
  to centralization of decision-making in shared
  systems
• Enhanced capabilities through centers of
  excellence for non-routine work
• Freed from the routine work, a new role for HR
  generalists as strategic business partners

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From Personnel to Business Partner
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Evolution of Organization Development
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Ulrichs Human Resource Champions (1997)

• Four Roles for HR
• Administrative Expert
• Employee Champion
• Change Agent
• Strategic Partner

When HR professionals work as strategic
partners, they work with line managers to
institute and manage a process that creates an
organization to meet business requirements.
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Examples of Critical CapabilitiesFrom Ulrichs
Human Resource Champions

• Align performance measures to strategic
  priorities
• Attract and retain high-caliber people
• Be the technology leader in the field
• Create a shared mindset
• Create capacity for change
• Demonstrate cultural flexibility
• Ensure trust between leaders and workers
• Form alliances with a variety of organizations
• Have a culturally diverse workforce
• Think and act globally

• Have dominant distribution channels
• Have committed employees
• Identify and develop the next generation of
  leaders
• Improve speed, cash flow, profitability, and
  productivity every year
• Innovate and learn more quickly than competitors
• Maintain good investor relations
• Manage financial management systems
• Take risks
• Work in a boundary-less way

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What It Takes to Be an Effective HR Business
Partner
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Becoming a Strategic Business Partner

• Knowledge requirements
• Using diagnosis to transform relationships and
  opportunities
• Staying focused on issues that matter to the
  business
• Delivering capabilities that make a real
  difference

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Business Partner Knowledge Requirements Examples
Strategic

• Talent planning
• Talent development
• Performance management
• Executive succession
• Executive compensation
• HRIS
• Shared services
• Outsourcing/offshoring
• International law
• Acquisition assessment
• Managing diversity

• Strategic alignment
• Organization architecture
• Globalization
• Enterprise integration
• Acquisition planning
• Organizational learning
• Executive development
• Cultural integration
• Change leadership
• Capability creation
• Board relations

Business
HR

• Quality
• Productivity/lean manufacturing
• Cost-reduction
• Process reengineering
• Supply chain management
• Work redesign
• Customer management
• Product development
• Change management
• Metrics/balanced scorecard
• Team effectiveness

• Compensation/benefits
• Recruiting
• Hiring/firing
• Data reporting
• Performance assessment
• Succession planning
• Relocation
• Orientation and training
• Labor law
• Merger integration
• Policy/fair treatment

Operational
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Using Diagnosis to Transform Relationships and
Opportunities
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Diagnosis

• Provides a powerful way of working with business
  leaders
• Involves a process and a set of principles
• Repeats whenever new opportunities emerge
• Helps transform relationships

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The Diagnostic Process
Scouting and Agenda Setting
Implemented Streams - Examples
Contracting
Data Collection
Organizational Diagnosis
Data Feedback
Streams of Work

• Organization Architecture
• Culture Change
• Executive Team Performance
• Leadership Development

Relationship Building
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Data Collection and Analysis

• Dialogues - centerpiece of data-collection
  strategy
• Input from business leaders on organizational
  issues and concerns
• Confidential, one-on-one discussions
• Structured process for interviewing, recording,
  analyzing, and reporting interviews with business
  leaders
• Results must feature powerful findings captured
  in the organizations own words

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Collaborative Organizational Diagnosis
What do we do?
What does it mean?
HR Business Partner
Business Leader
Information
What does it say?
What do we see?
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Core Principles
Process Steps
Core Principles
Getting Started
BL Ownership


Data Collection
Organizational Diagnosis


Iterative Learning
Interpretive Diagnosis
Collaboration
Data Feedback
Change Leadership Skills

Streams of Work

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Six Dimensions of Relationships That Enable
Change
Building Trust
Personal Investment
Advocacy
Courage
Collaboration
Interpersonal Agility
Source Carucci and Pasmore. Relationships
that Enable Enterprise Change, Jossey Bass, 2002
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Staying Focused on Issues That Matter to the
Business
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Staying Focused on Business Issues

• What are the issues that matter?
• Whats keeping business leaders up at night?
• Whats the moose on the table regarding the
  future?
• What drives the bottom line?
• Changing how you spend your time and attention
• Not getting pulled or pushed back into the old HR
  box

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Delivering Changes That Make a Real Difference
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Congruence Model
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Two Key Challenges

• Creating a new strategy that seizes market
  opportunities and makes full use of the
  organizations competitive advantages

• Designing an organization that supports the full
  and effective execution of the new strategy

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Some Examples of Doing it Well
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Strategic Business Partners Par Excellence
Noel Tichy/Steve Kerr
Richard Antoine
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Business Partner Career Paths Examples
Strategic
HR Executive
OE Executive

• Talent planning
• Talent development
• Performance management
• Executive succession
• Executive compensation
• HRIS
• Shared services
• Outsourcing/offshoring
• International law
• Acquisition assessment
• Managing diversity

• Strategic alignment
• Organization architecture
• Globalization
• Enterprise integration
• Acquisition planning
• Organizational learning
• Executive development
• Cultural integration
• Change leadership
• Capability creation
• Board relations

Strategic Business Partner
Business
HR

• Compensation/benefits
• Recruiting
• Hiring/firing
• Data reporting
• Performance assessment
• Succession planning
• Relocation
• Orientation and training
• Labor law
• Merger integration
• Policy/fair treatment

• Quality
• Productivity/lean manufacturing
• Cost reduction
• Process reengineering
• Supply chain management
• Work redesign
• Customer management
• Product development
• Change management
• Metrics/balanced scorecard
• Team effectiveness

Business Partner
HR Specialist
OE Professional
HR Generalist
Operational
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Next Steps
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Next Steps What You Can Do

• Make it personal
• Begin with conversations and diagnosis
• Build stronger relationships
• Stay focused
• Measure impact of changes on business results
• Commit to learning

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We Could All Stand to Learn More About

• Developing extremely effective leaders
• Creating more flexible but still high-performing
  organizations
• Working globally, virtually, horizontally, and
  spontaneously
• Inventing and implementing new business models in
  old companies
• Changing cultures making customers, values, and
  integrity real
• Organic growth
• Leveraging diversity for business results
• Strategic design
• China and India