1. Future of HR:
Final Reflections
Dave Ulrich
Rensis Likert Professor, University of Michigan
Partner, the RBL Group
(dave.ulrich@rbl.net)
April 13, 2022
2. 2
Value Defined by Receiver
Premise: Create other’s leadership brand; build on your
strengths to strengthen others; use your power to
empower others
1.Question: What is a question I want/need to answer?
2.Insight: What is something I learned today?
4. 4
What trends impacting the business will have the
most impact to HR?
The great resignation
Talent scarcity
Talent shortage
Labor shortages on skilled workers
Talent acquisition as a capability
Focusing too much on hybrid instead of
purpose!!
Overreacting to change
Balance of power
Labor shortage
War for talent and what attracts them to us
short vs long term
Cost impact of increased salary demand long-
term
Not having the right people to deliver on key
business capability
Remote work
Retention
Hybrid work
Increasing cost of labor vs revenue
Filling positions with the proper people.
Regrettable attrition
Talent availability
Employee desire for immediate gratification - no patience
for development to play out before moving to next place
or thing
Integration between technology and human judgement
when it comes to talent management
People want to work less, how does work get done to
meet all the demand?
Great resignation
Creating a sustainable employee value proposition
Available workforce -
Sustaining talent through this evolution
Labor market
Retention
No affinity to the organization
Rising cost of talent
Compensation escalation increasing COB
Individual talent development
Not being able to retain talent negatively impacting
business outcomes
Creating a sense of purpose and belonging for employees
Uncertainty
Stakeholder capitalism
Labor shortage
Managerial capability to enhance the teams
Talent choice and power
Capability shortages
Talent shortage
Old talent practices being replaced by new.. What
does new look like and will it work.
Leader effectiveness
Effectively shifting/influencing executive mindsets
to meet the new normal.
Life cycle of employment
Changes in leadership competencies to lead in new
era.
Lack of engagement
Old school processes- people digging in and not
wanting to change/
Adapting quickly enough to changing needs
Activism
DEI and balancing trade offs between speed and
diversity in hiring
Women opting out of workforce
6. 6
What am I certain about in a world of uncertainty?
1.HR is not about HR, but helping business succeed in
marketplace; If we don’t succeed in the marketplace,
there is no workplace
Ø Employee experience SO THAT we succeed in
marketplace
Ø Culture SO THAT customers have better experience
Ø Digital business transformation BECAUSE OF
7. 7
Environment
(context…outside/in)
Future of HR: Environment
Think and act outside/in with context and stakeholders,
• Increasing employee market power /
employee primacy with labor
availability
• Changing nature of jobs/work
• Increasing ESQ/sustainability
• Innovation in digital
• Evolving stakeholder attention and
activism
• Every generation is challenged (why we
work vs. how we work)
• Loss of trust; distrust default
• Search for truth (google search)
• Anxiety for future imperative
• Responding to changing digital world
• Transparency
• Information age
• Rapid adoption of in person to digital
• Recognize the increase pace of change
• Challenge of social isolation and
loneliness… physical and emotional;
focus on connection
• Employee activism as a way to create
engagement: assassins, agitators,
crusaders, community organizers
• Under pressure some rocks become
dust; others diamonds
• Discover opportunity in crisis
• Seek certainty in uncertainty
• Navigate paradoxes (outside/in vs.
inside out; change vs. stability)
• Context is kingdom; content is king
8. 8
Strategy
(competitiveness)
Future of HR: Strategy
Evolve from strategic planning to competitiveness
through strategic agility
• Purpose matters … power of
purpose
• Strategy defines the highest
impact work
• Ensure agility more than plans
• Mission/purpose statements to
demand truth and reflect social
values
• Competitive advantage: what
do we do to meet customer
needs in a unique way, e.g.,
How do we create agile
strategy to change faster than
others
• Enterprise: what and how many
businesses are we in?
• Business;
• Where do we focus for
growth? (customer,
innovation, global)
• How do we win?
(capabilities)
10. 10
Human Capability Initiatives
Leader as meaning
maker with emotion
Employee
primacy
Strategic clarity /
Purpose
Diversity, equity,
and inclusion
HR practices:
people, work,
accountability,
Information
Agile organization
Collaboration/
network/ecosystem
Technology:
Digital reinvention
AI, machine learning
Reskilling
Workforce
HR people:
competencies
Hybrid work
ESG: social
responsibility
Customer
focused agenda
Employee well being/
Experience
Changing the right
culture
HR
transformation
Great resignation/
Retain people
Distributed
leadership
Leadership
academy
How many of
these initiatives
have you tried in
your organization?
11. 11
Future of HR
HUMAN CAPABILITY
HUMAN RESOURCES EFFECTIVENESS
TALENT
Competence
Workforce
People
LEADERSHIP BRAND
Individual Leaders
Leadership Pipeline
ORGANIZATION
Capability
Workplace
Process
Language in this area is often confusing. We are using the term “human capability” to refer to talent,
organization, leadership, and human resources (HR).
12. 12
Human Capability Initiatives
Referral
hiring
Show empathy or
emotion
Team
incentives
Strategic clarity /
Purpose
Focus on efficiency
Innovation
initiatives
Agile organization
Strategic
redirection
Digital reinvention
360
Team building;
Relationships
Work at home/
Virtual work
Social responsibility
Customer
focused agenda
Employee
engagement/
Experience
Changing a
culture
HR
transformation
Retain good
people
Pay for
performance
Leadership
academy
Circle the
initiatives you
have tried in your
organization.
13. 13
What strategic choices will you need to make in the
next 12 months?
Organizational design within HR function
Better technology platforms
Hiring for the capability as opposed for years of
experience
Redesign of performance management process
and systems
Re-looking at talent acquisition: more focus on
strengthening the team.
Building capability/skills for the future
ID re-skilling partner to shift current talent to
emerging technology areas > buying external
talent
How to share the investment in talent between
acquire and develop.
Identify them and consider what work can be
done with the organization’s nerve centers.
Prioritization of key projects supporting business
needs
Redesign of compensation plans
Enhanced analytics and insights
The next generation of talent
Building TA as an organizational competency
Investment in which functions to prioritize
To stay or to go
Redistribution of HR talent from transactional to
strategic
How to allocate my HR resources for greatest
value/impact
Office footprint
Where to deploy the capacity of the HR to best serve
the business needs
How to resource and where to focus.
Increase in technology and data management.
Decisions about M&A integration
Where to divest and invest to drive value creation
How far to push and accept hybrid work
Building a team
Building accountability for survey results
Progress over Perfection!
Double down on investing in technology as a scalable
platform for talent management
Where to put (scarce) HR headcount - get the urgent
done versus the future work done.
What is most important to company and people now.
Cannot solve everything
HR Technology platform
Differentiate investment in talent / benefits /
organization
Where to buy, build or rent talent
Hire for the 80/20
How and where to invest in HR talent and solutions -
prioritization
push/pull of employee and business demand
Succession planning for new org design
accelerating readiness of talent in succession plans
How to drive greater belonging
Emphasize, value, and recognize true people leaders
who can operate at the individual level to retain critical
talent
Start, stop, continue HR function.
The future HR Operating Model
14. 14
What am I certain about in a world of uncertainty?
1. HR is not about HR, but helping business succeed in marketplace;
If we don’t succeed in the marketplace, there is no workplace
2. HR delivers value to stakeholders through innovative ideas with
impact on
Ø Talent: employer of choice of employees customers would
choose
Ø Leadership: leadership brand
Ø Organization: culture as identity in the market made real to
employees
16. 16
Human Capability
Future of HR: Talent
Talent: Ensure the right individual
competencies (skills) workforce, human
capital, or people
• Create a differentiating
employee value proposition …
Personalize relationship --
people want choice and control;
be highly flexible
• Employee value proposition:
belonging (inclusion), believe
(purpose), become
(learn/growth)
• Forecast future talent needs as
tasks not jobs
• Ensure that everyone is always
recruiting
• Manage great resignation and
availability
• Workforce planning connected
to the business
• Get the right talent for my
business … strategy not generic
• Work to overcome loneliness by
navigating paradox ... Get work
done AND nurture employees
• Build trust … and truth … be a
truth builder
• Redesign employee experience
• Attend to mental health/
emotional well being
• Managing what employees want
with what they need
• Navigate paradox: individuality
and community
17. 17
Human Capability
Future of HR: Organization
Organization: Create the right organization
capabilities, workplace, culture, team
• See talent as an organization
capability … predict, bring in
• Increase a sense of belonging
and inclusion ... intent to stay
• Build teams … become an
internal consultant (move over
McKinsey
• Identify nerve centers (IT,
supply chain, purchasing , etc.)
• Create mindset that meets
market requirements
• Scale without losing core
principles ... Can we keep
culture while growing quickly
• Create the right capabilities for
the market: purpose, agility,
customer centric
• Navigate paradox .. Culture as
values inside vs. value of values
outside
18. 18
Human Capability
Future of HR: Leadership
Leadership: Establish the right leadership
brand for leaders and leadership
• Make sure line managers are
accountable
• Ensure authentic leadership …
leading to empathy
• Assess leaders in crisis to build
for succession
• Remove hierarchy in
organization …less position
power
• Prepare leaders to lead
differently
• Employees want more of their
leaders … to feel kinship with
the at a distance
• “Bad’ leaders did not get better
in COVID
• I feel supported by manager
and my manager is helping me
get better
• Help (coach, develop) leaders
to be emotional caregivers
• Use strengths to strengthen
others; power to empower
others
• Build others’ brand
19. 19
Human Capability
Future of HR: HR for HR
HR: Upgrade the HR department, practices,
people, and analytics
• Create hybrid work policy
about where we work
• Separate work from
workplace ; when at work
come together and
collaborate
• Clarify HR accountability:
• drive customer and
shareholder value through
people and organization
• Deliver culture and leaders
to deliver growth
• Have talent and capabilities
to win
• Upgrade HR skills: courage,
curiosity, point of view,
• Become experts in work
• Learn macro economy; how to
make money; adjust quickly
• Improve HR analytics ability
• Define identity as “business
partner”
• Have conversation about being
a “keeper”… cost/opportunity of
people … with feedback
• Transform HR
• Use data to make decisions
• Do survey to discover what
people think about and
expect from HR; pre and post
test
• Invest in HR… e.g., HR academy
• Build credibility in HR function
• Focus on relationship more
than roles
20. 20
What am I certain about in a world of uncertainty?
1. HR is not about HR, but helping business succeed in marketplace; If we
don’t succeed in the marketplace, there is no workplace
2. HR delivers value to stakeholders through ideas with impact on
Ø Talent
Ø Leadership
Ø Organization
3. HR must upgrade HR to meet higher expectations (companies get HR
function they deserve)
Ø HR department
Ø HR competencies
Ø HR analytics
21. 21
Analytics/Follow up
(impact and guidance)
Future of HR
Impact: Establish an organization guidance system to monitor
and shape choices
• Be science based
• Ask:
• What is our risk and link HR to
risk management
• How do we offer value through
HR?
• Don’t be busy; be impactful,
where do I not focus
• Fulfill “Capital” ideal,
risk/reward, analysis,
• Have data to make decisions
Evolve from benchmarking to best
practices to predictive analytics to
guidance for impact
• Sustainable Insights = theory
(why things happen that builds
on past) * rigorous research
(structured or unstructured
data)
22. 22
My takeaways … optimistic
Think:
What are my changing
assumptions about HR?
Act:
What will I do for myself,
for HR, and my
organization ?
Feel:
How do I feel about being
in HR?