Human Resources Strategy

1
Human Resources Strategy Benefits Realisation
September 2005
2
Congruence Approach Balancing People, Culture
and tasks

• Component tasks

Executive Leadership
Strategy
Critical Tasks

• Human Resources
• Capabilities and
• Competencies

• Norms, values
• Informal Roles
• Informal Power

Culture
People
Organisational Structures

• Reward systems
• Formal linking
• Structures

Adapted from Nadler, D M, Tushman
3
HR to move from a traditionally administrative
focus to a more specialist consultative role

• HR has started to shed the traditional role of
• a little strategic work, a little consulting, and
  a lot of administrative duties
• empowering line management to perform necessary
  HR roles

Strategic
Strategic
Strategic
Consultative Value adding service delivery
Consultative
Admin
Admin
Increasing Relevance
A new reputation and value proposition for our HR
requires a fundamental mind-set change in the
organisation, however more critically mindset
change from the HR Leaders.
4
HR Caught Between Conflicting Priorities
costs need to be managed and need to work
smarter and more effeciently
While Pressure is increasing for HR to take on a
more strategic role in human capital management
Factors Contributing to Need for Strategic Human
Capital Management
Factors Contributing to Cost Pressures on HR
PFMA
MA
Customer Sophistication
Customer Demand Aggregation
Management
Delivery
Staff

• Strategic
• Human Capital
• Management
• Strategic
• Human Capital Planning
• Accelerated
• talent development
• and sourcing

HRSSU
Change
Self-service
Rationalisation
Planning
Strategic
Talent Shortages
Recruitment
Workforce
Outsourcing
Customer Sophistication
Price Recession
Restructuring
Technology
5
Transforming the HR Function _at_ Eskom
Upgrade Talent
Leveraging Technology
Narrowing Focus
6
HR Culture and Behavior

• Performance orientation
• Influence business objective
• Output focused
• Quality
• Customer excellence

• Attitude
• Eskoms strategic intent
• Service excellence
• High energy
• Passion/positive mindset

• Professionalisation
• Technology
• Appropriate competence
• Technical
• Application thereof
• Accountability

• Professionalism
• Proactive
• Ethics, morality, values
• Style
• Credibility/legitimacy

7
Ensuring Business Partnership
8
Our HR Strategy Unique value proposition,
tailored chain of activities, trade offs,
Reinforcing activities fitting in together,
continuity and continuous improvement
Technology (Enabler)
Business Strategy
Change Management
Leadership and Culture
Business Model (Eyethu)
Skills and Talent Management
Job Grading (market related)
Employee
Line-of-sight Performance Management
Competitive Remuneration, Rewards and Incentives
Focused Learning
9
ESKOM S STRATEGIC INTENT

• Eskom will be the pre-eminent African
• energy and related services business of
• global stature

10
Eskom is an organisation in which individuals
achieve their professional and personal
aspirations through the attainment of Eskoms
goals
ESKOMS PEOPLE VISION
11
At the dawn of the new African personality,
Eskom has embarked upon a journey into the
African century (Desired Organisational Culture)
ENVISAGED
AS IS
Transformation
12
Transformational Leadership Development

• BUSINESS NAVIGATORS - 21st Century Strategic
  Business Leadership
• African and International business leadership
• Management functions
• Leveraging information and technology
• Visionary vanguards
• MIND MASTERS - Intellectual Mind Power
• Systemic thinking
• Analytical thinking
• Innovation
• Tough decision making
• ANCHORS - Business Systems and Processes
• Understanding the Eskom business systems,
  processes and practices

• EFFECTIVE ENGAGEMENT - Managing interactions for
  success
• Influencing persuading
• Communicating effectively
• Creating and sustaining relationships
• Conflict management
• Organisational dynamics
• Transition management
• Embracing diversity
• ATTITUDE - Personal Enablers for impact
• Emotional competence
• Professionalism
• Personal Mastery
• Work life balance

13
System and business process links
SAP HR and CapTrade
Task Grading
Talent Manager and SAP PD
Job Profile and Competency Profile
Individual Profile
Human Capital Assets Register
Talent Manager
eCompacting
eRecruitment
PIMS
Performance Management
Advert and Recruitment Process
Incentives
eCompacting
SAP HR and Finance
Personal Development Plan
Remuneration Modeling
Workplace Skills Plan
SAP HR
SAP LMS
Focused Learning
Appointment
Workplace Skills Report
14
Employee Planning Development
Learning Interventions
Development Plan
Appraisals
Dislikes
Profile Match-up
Inherited Competencies
Potential
Preference
Inherited Task/ Output Profile
Qualification
Person
Person Profile
Position Profile
Position
Qualification/ Requirement Catalog
Competency Profile
Task Output Profile
Job
Task/ Output Catalog
Job Profile
Career Succession Management, Recruitment,
Development Planning, Workplace Skills Planning,
Training Events Management
15
Performance Management
16
Change Management

• accelerate the bedding down of these changes in
  the organisation
• operationalise the HR product set
• build resilience to change in Eskom employees.

17
HR with Attitude

• HR Leaders Forum
• July 2004

18
CHANGING ROLE OF HR THROUGH THE INTRODUCTION OF
INTEGRATED TECHNOLOGY
Business Value
Project emphasis
Ndawu/Manchu Consulting
19
CHANGE DRIVERS
HR Organisations Historically
Target HR Organisations
Time, Effort, Cost
Time, Effort, Cost
5
25
Strategy
Strategy
Advisory
55
Advisory
45
Administration
20
50
Administration
6
Strategy
Eskom HR Organisation
Time, Effort, Cost
47
Advisory
Over 90 of Eskoms HR effort is focused on
transactional, administrative and advisory
activities.
47
Administration
20
CHANGE DRIVERS
Creating a Hi performance context
Organisation Individual Behaviour

• Managing Divisions in a
• transitioning state
• Aligning Org. Behaviors
• with Strategic Objectives

Talent Provision

• Declining skills
• Surplus capacity
• Grow new skills for
• The NEW Eskom
• Managing limited
• skills availability

Talent Planning Resourcing
Learning
Remuneration Benefits
Enabling Processes
Occupational Health Wellness
IR

• Physical Health
• Psycho-social health
• Formal IR agreements

21
PRINCIPLES

• Role of Corporate world of HR is DPA Strategic
  Services
• Small but efficient structure also focusing
  Culture and Change Management
• Transactional HR standardised and technology
  used (HR Services Desk)
• Roles of Divisions will be execution of policy
  and interpretation for their businesses
• Some aspects of Business Support might be ring
  fenced

Strategy

• Structure to support move from HR administration
  focus to a strategic role
• Processes performed by HR need to change to
  support Eskoms strategic objectives
• Reskilling of people to fulfill new designed
  roles
• Behaviors need to change to create high
  performance culture

Structure
People

• New jobs will be graded according to Eskom
  policies and procedures
• E-band appointments will be made by MDHR in line
  with policies and procedures
• Non- E Band appointments will be made in line
  with Eskom policies and procedures
• Appointments will be informed by performance
  track record, Captrade, OPP CPA
• Transformational aspects will be considered
  (Employment Equity)
• Social Plan Principles will be applied where
  necessary

22
HR PARTNER ROLE

• Primarily to
• Provide proactive HR support to the divisional
  managing directors
• Responsible for the relationship with the
  divisional management teams
• Must become an integral part of the divisional
  management teams
• Participate in the decision making
• Works as a coach to executive management
• Provide leadership to other HR staff
• Considered the expert within the division on all
  HR matters

23
HR ROLE FRAMEWORK
People
Employee Champion - increasing employee commitment
Change Agent - making things happen
Strategic Focus
Operational Focus
Administrative Expert - building efficient
infrastructure
Strategic Partner - aligning HR with overall
strategy
Process
24
Competence of HR Professional
Business Understanding
Change Management
Personal credibility
Culture Management
HR Processes Practices
(Ulrich)
25
An Overview of Shared Services

• The Shared Services Model
• The Objective of the Shared Services Model is to
  consolidate and redesign staff and support
  functions to deliver the most cost-effective and
  highest-quality services possible.
• Characteristics of Shared Services Opportunities

High Volume, Routine Transactions
Specialized Skills
Company-Wide Information
Economies of Scale
Leveraging Scarce Resources
Leveraging IT Investment
Value Drivers
26
Value Proposition Benefits
Strategic
Speed
Quality
Value

• Enable new business models
• Accelerate merger acquisitions
• Support growth
• Achieve process and systems standardization

• Reduced cycle times e.g.,
• Recruitment
• Benefits
• Requisitions
• Processing
• Sourcing

• Improved information for decision making
• Better customer service
• Reduced error rates - quality at source

• Higher productivity
• Lower cost location
• Reduced working capital
• Reduced expenses
• Reduced systems infrastructure costs

27
Leverage Areas for HR Contribution
Leadership (Values and Competence)
Strategic Intent / Vision
Talent Management (Individual/ Organization)
Technology (Speed, cost, quality)
Change management
28
Where are we..

• Have already moved from HR to HED evidenced by
  our people philosophy, HR structures, HR with
  Attitude stance, HR Product set
• Need to move our mindset and paradigms remember
  the congruence model striving to do that with
  the HR Academy courage of our conviction as in
  our 2005 focus areas need the confidence that
  HR technical knowledge will give us remember
  our new required HR competencies
• Need to move our management style African
  Leadership approach and eventually the African
  Leadership Institute getting us there
• Need to make our line managers business AND
  people managers Vision E getting us there

29
CONCLUSION
Technology, Leadership, Talent and Change
Management all form part of the gears that keep
our organisation moving. Without Technology we
would not be able the car to take us, without
Leadership we wouldnt know where to go, without
Talent Management we wouldnt know how to get
there and without Change Management we wouldnt
know how to handle it once we actually arrived!
Together these aspects of the HR strategy work
together to make our employees and managers
better equipped to face any challenge be it
big or small.
30
THANK YOU