1. AGILITY @ HR
EXCELLENCE – ART – LEADERSHIP
Dirk Stoltenberg, Global HRM // HR Tech Europe 2014
This document provides an outline of a presentation.
It is incomplete without the accompanying commentary
2. ALMOST 20YRS OF SHARED SERVICES...
...acknowledge for:
•More efficiency and reduced cost – Sure!
•Improved Customer Service – Maybe.
•Fewer administrative burden – For whom?
3. Poorly defined and non-standardized processes reduce operational efficiencies and cost-savings.
Processes
1%
32%
0%
20%
40%
Non-standardized processes
Standardized processes across all locations
Impact of Process Standardization
on Cost-Savings
Net Cost-Savings
Source: Shared Services Roundtable
People
High turnover and dis-engagement of staff reduce productivity, negatively impact customer service, and increase hiring costs.
Annual Turnover Rates
Median Turnover Rate
15.2%
9.9%
0%
10%
20%
Shared Services Employees
All Corporate Employees
Source: CLC Human Resources
35%
18%
14%
13%
0%
20%
40%
Non-integrated technology and data sets can reduce HR shared services center quality and efficiency.
Technology
Top HR Service Delivery Issues
Percentage of Organizations
Streamlining Processes
& Systems
Upgrading
HR Systems
Data Accuracy
Integrating Systems
Source: Towers Watson
6. Changing nature of work
Changing needs of internal clients
Changing nature of the consumer
Changing nature of B2B customers
Changing impact of information
BUSINESS TRENDS 2015+
8. Distinct but complementary capability
Strategize dynamically
Shared purpose
Purpose other than profit & growth and business model are known. Values embedded drive behavior on a daily basis
Change-friendly identity
Sense of „who we are“ and „What inspires us“. Strategy encourages the organization to change
Robust strategic intend
Current strategy is relevant in and concruent to the actual market conditions. Held flexible enough to change on short notice
ROUTINES OF AGILITY (1)
Perceive change
Sensing
People are keen to explore the future deeply. Many people maintain continuous contact with parts of the business environment
Communicating
Unfiltered information from the environment goes rapidly to decision makers. Communication goes seamless between top down & bottom up.
Interpreting
Information gets evaluated against firm‘s identity, intent, business model, and risk tolerance
Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company
9. Distinct but complementary capability
Test & experiment
Slack in resources
Capable resources (people, money, time, tools) are available and can be readily deployed to experiment with new ideas
Risk Management
Experiments are bounded by agree-upon criteria for judging success and failure. The possibility of failure is accepted, as a vehicle for learning
Learning
Experience with running experiments is captured and applied with each „new round“, so that the company‘s capabilities are continuously improved
ROUTINES OF AGILITY (2)
Implement the change
Management and organizational autonomy
Executives delegate sufficient authority to line and business managers o that the company can execute changes with success. There‘s no second guessing from headquarters but alignment with basic strategic objectives
Embedded change capability
The pragmatic ability to change collective habits, practices, and perspectives is embedded in line operations, not isolated in staff groups
Performance management
Clear, unambiguous, accepted performance measures and targets are based on business model drivers with rewards that matters
Source: T.Williams, C.G.Worley, E.E.Lawler / 2013 / Booz & Company
10. Companies scoring high in agility related routines have higher levels of Return On Assets
Source: Center of Effective Organizations, University of Southern California
