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HR Strategy: A Best-Practice Strategy
Development Process

Enio Velazco
Philips Healthcare
April 26, 2010
Consultative and Enabling . . .




                            Delivering on the fundamentals . . .

                                                               2
Organizational Vision . . .




                              3
Focusing on 2010
HR Strategy Development Process


Data Gathering                        Focus Areas          S
                                                           E
                                                           R
  Corporate                        1. Focus Area # 1       V
                 Data Analysis &                           I
  Strategic                                                C
  Plan
                    Strategy                               E
                  Formulation                              S
                                   2. Focus Area # 2       O
  HR Sector                                                F
  Input                                                    F
                                                           E
                                                           R
  Executives                       3. Focus Area # 3       E
                                                           D
  Input
                                                           P
                                                           R
  Other                            4. Professional         E
                                                           P
  Resources                           Development          A
                                                           R
                                                           I
                                                           N
                                                           G


 Oct/Nov 2009      Dec 2009          Jan 2010          5
Executive Input
                      Importance
                                               Desirability Matrix



P                                                         Comp           OD
                        High
E                                                                                  LD
R                                                          C
                                                                     EES            T
F                                                               O             TM
O                                                                   PM
R                     Medium                               R
M
A
N
C
E                        Low


                                     Less                Same                   More
                                                                                    Support Level
                                                                                         Desired
                      EES          Recruitment   Comp          OD         Talent Mgmt
                      Onboarding   Perf Mgmt      Trng         Comms          Leader Dvpmt
                                                                                             6
Sample question




                  7
Executive Input: Select Comments

• “[HR] does a great job, I get good support in all areas.”


• “HR was very helpful on assisting in achieving business results translating ideas/survey
  results/corporate directives into meaningful action plans.”


• “HR as a function has demonstrated the ability to perform the basics well and has earned
  the right to be a Business Partner.”


• “Leadership development support is very limited, need more resources/programs.”


• “Org. Effec/OD Consulting – lots of work involved with Maple and Cherry reductions. Both
  reductions were handled professionally.”


• “In 2009, I found the HR support to be very good, the only challenge is that they are a little
  thin in resources which limits their ability to deliver as quickly as might be optimal. I
  sometimes wonder if we are not over driving the group. Good HR support takes time and
  is more than just filling in templates.”                                                  8
Executive Input: Select Requests

• “Integrate the LTW concept more fully into the organization and culture. Better at
  articulating attributes that define each of the blocks.”


• Biggest areas of concern/opportunities for 2010:
      Transformation Training – organization needs to be prepared for major change in the way we sell
       products. New skills will be needed as well as different approaches. This work is related to the
       Channels project which will also require HR work as we move forward.
      Compensation – need to keep an eye on balanced selling components and see if they are
       helping to achieve the business goals.
      Employee Engagement - need to address issues/concerns identified in deep dives.
      Retention – big concern that many people may be waiting until the job market improves and then
       will look to make a change.
      Talent Management – need to continue what we are doing with a focus of increasing the High
       Potential pool.
      Full integration of Respironics mid-year.


• “Help in determining Marketing Training strategy across GSSNA for 2010”

                                                                                                    9
Aligning Agendas
                                                                         Our HR Strategy
Philips Management             Philips People      Healthcare People
    Agenda 2010                Agenda 2010           Agenda 2010




                     Healthcare Mgmt
                      Agenda 2010




                                                Management Agenda 2010




                                                 GSSNA           GCS




                                                                                           10
HR Strategy Development

                                      Focus Areas

Data Gathering                     1. Organizational
                                      Effectiveness
  Corporate      Data Analysis &
  Strategic
  Plan
                    Strategy
                  Formulation      2. Talent
  HR Sector                           Development
  Input


  Executives                       3. Organizational
  Input
                                      Culture
  Other
  Resources
                                   4. Professional
                                      Development


                                                       11
2010 HR Strategy Plan
            Focus                                     Actions
            Areas                                (non-exhaustive list)                              Leaders

1. Organizational Effectiveness   1.1 Visicu, Emergin, & Respironics integration          1.1   Nancy K.
                                  1.2 IS reorganization                                   1.2   Jim J.
    • Integrate acquisitions      1.3 Com Ops & Finance reorganizations                   1.3   Janet & Jim J.
                                  1.4 OD interventions                                    1.4   HRBPs
    • Org. simplification         1.5 Support various business initiatives; e.g., OACM,   1.5   Pertinent HRBPs
    • Reorganizations                 JEDI, Platinum, etc.
                                  1.6 Strategic Workforce Planning                        1.6   Tony, Enio, et al.
2. Talent Development
                                  2.1 Conduct quarterly talent reviews                    2.1   HRBPs
    • Foster talent               2.2. Identify TPs, HPs, and Promotables                 2.2   HRBPs
      development mindset         2.3 Socialize “Leader-Led Development”                  2.3   HRBPs
                                  2.4 Offer Magellan, CORE, Inspire, Octagon, HPDC,       2.4   HRBPs
                                       and TPDC
                                  2.5 Support College Hire Program                        2.5 HRBPs
3. Organizational Culture
    • Influencing leader          3.1 Role-model, cascade, and support L2W behaviors      3.1 All
      behavior to increase        3.2 Coach managers on acting in ways to increase        3.2 All
                                       trust, accountability, and teamwork
      engagement:                 3.3 Partner with managers to cascade Strategic Plan     3.3 HRBPs
        • Trust                        and practically position organizational actions
        • Accountability          3.4. Celebrate successes & reward good performance;     3.4 All
        • Teamwork                     e.g., HR Leadership Award

                                  4.1 “Consulting & Communications Skills” Workshop       4.1    All
4. Professional Development
                                  4.2 2010 HR Professional Development Series             4.2    All
    • Investing in ourselves
                                  4.3 HR Book Club                                        4.3    All

                                                                                                                     12
Philips Leadership Culture & Values
  Corporate                                                                          Applied Practices
                    Motivation              Expected Behaviors
   Values                                                                      (Reinforcing GSSNA Program)

                                      Shows passion for “Sense & Simplicity”   • Consultative Selling
                                                                               • One List Focus (Playbook)
                  We anticipate and   Asks questions to learn customers
   Delight                                                                     • Philips Promise
                  exceed customer     needs and success drivers
  Customers
                    expectations                                               • Promise Cycle (FP)
                                      Acts as a “One Philips” ambassador       • Customer Satisfaction Survey

                                      Sets ambitious targets for himself and   • Customer Segmentation
                                      others                                   • Customer Based Solutions
 Deliver Great   We continually raise Challenges status quo and seeks          • Forecast Accuracy
   Results            the bar         innovative ways to accomplish work       • Funnel Management
                                      Makes clear decisions and implements     • Common Platform for Service Delivery
                                      with speed and discipline                • Continuous Improvement (CCT)
                                      Attracts high performers and builds      • Coaching & Mentoring
                                      strong diverse teams                     • Leadership & Managerial Skills
                 We get the best from                                            Development
    Develop
                 ourselves and each Provides stretch development
    People                            assignments                              • Champion Structure (CCT)
                        other
                                      Coaches and recognizes people ’s         • Front Line Business Acumen
                                      contributions                              Development (CCT)
                                      Thinks as “One Philips” and acts as      • Courageous Conversations (FP)
                                      owner
                   We deliver more                                             • 5 Speech Acts (FP)
Depend on Each
               value by working as    Trusts and empowers others               • Accountability Cycle
    Other
                    “One Philips”                                              • Cross Functional Teaming (CCT)
                                      Works in teams and allocates resources
                                      to the most promising opportunities      • Philips Promise Action Plan (CCT)

                                                                                                                        14
Leader-Led Development

• To maximize development opportunities across our organizations, we
  will emphasize the following three principles:
   1. Leaders can play five keys roles to accelerate people’s
      development (see Slide 16)
   2. Leaders should role model receptivity to feedback, recognizing
      their strengths and weaknesses, and following through on
      development goals, and
   3. Employees should take responsibility for their own development




                                                                       15
Leaders’ Five Key Roles
The roles capture the underlying activities (see graph below) that have the greatest impact on people’s
performance. They rely on a leader’s privileged insight and position. In other words, leaders can become
effective talent developers by relying on their natural strengths, experiences, and abilities.




                                                                                                    16
* Based on “Leadership Development,” CLC, 2009
Prepare, Act, Reflect, and Review (PARR) Model
  A PARR (Prepare, Act, Reflect, Review) is a 4-step methodology for linking
  skill development with work activities.



                          Prepare                          Act                      Reflect                  Review
Learning Model
                                          “What is the              “What are the         “What did I learn           “What learnings
for Managers and
                                          competency I              activities that I     from my                     can I share with
Leaders
                                          must acquire?”            should engage in?”    experiences?”               my manager and
                                                                                                                      peers?”


Coaching Model for                    “How can I help            “What suggestions       “What questions         “What questions
Direct Managers and                   contextualize the          can I provide him or    should I ask to         should I ask to help
Manager-Mentors                       competency he              her based on my         help him or her         him or her further
                                      or she must                personal                reflect on his or       explore his or her
                                      develop?”                  experience?”            her learning?”          learning?”




                                                                                                                                         17
  * Based on “Leadership Development,” CLC, 2009
HR Professional Development Series Schedule
     Date                                      Topic                                   Leader
                                                                                         Rita Allen
    16-Mar-10                           Emotional Intelligence
                                                                                      (guest speaker)

                  HR Book Club: "The Inner Game of Tennis: The Classic Guide to the
    19-Mar-10                                                                              Enio
                  Mental Side of Peak Performance"
    29-Apr-10                               M&A                                         Mike Spahn
              HR Book Club: "Mojo: How to Get It, How to Keep It, How to Get It
    11-May-10                                                                            Nancy K.
              Back if You Lose It"
    18-May-10                      “Common Legal Risks”                               Gerry Whitcomb
                                                                                      Marie Moran &
   26/27-May-10         Top of Your Game Consulting and Communication Skills
                                                                                        Company
     8-Jun-10                                   Mentoring                                 Anetta
                  HR Book Club: "Getting Things Done: The Art of Stress-Free
    18-Jun-10                                                                              Greg
                  Productivity"
    22-Jun-10                       Compensation / Benefits (tbd)                       Beth Grella
       tbd                           Strategic Workforce Planning                          Tony
    13-Jul-10                                 SPIN Selling                                Jim J.
    27-Jul-10                               Finance for HR                             Dan Leonard
    3-Aug-10                               Influencing Skills                            Enrique
    17-Aug-10                             Sleep Biz Overview                               Ted
    16-Sep-10                             Political Intelligence                         Nancy K.
    28-Sep-10                              Systems Thinking                               Nicole
    12-Oct-10                             Cultural Differences                             Lora
    27-Oct-10                       Employment Value Proposition                           Sam
       tbd                       MBO Development Software Overview                       Pete/Will
    17-Nov-10                                UnDutchables                                  Enio         18
2010 HR Goals: Q1 Update
    Individual
                                                             0   1
        – Conduct one OD intervention
                                                             0   3
        – Conduct at least 3 talent reviews/year
                                                             0   1
        – Influence biz partner to do 1 training session
                                                             0   60%
        – Participate in development opportunities
                                                             0   1
        – Participate in one major HR Sector/BG initiative

    Organizational
                                         0         1
        – Identify 1 new TPs
                                         0         7
        – Identify 7 new HPs
                                                             0   2

        – Import 2 TP/HP from another BG/Sector
                                                             0   2
        – Export 2 TP/HP to another BG/Sector
                                                             0   15
        – Identify 15 openings for college recruits
                                                                       19
20

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2010 best practices workshop gssna - ev

  • 1. HR Strategy: A Best-Practice Strategy Development Process Enio Velazco Philips Healthcare April 26, 2010
  • 2. Consultative and Enabling . . . Delivering on the fundamentals . . . 2
  • 5. HR Strategy Development Process Data Gathering Focus Areas S E R Corporate 1. Focus Area # 1 V Data Analysis & I Strategic C Plan Strategy E Formulation S 2. Focus Area # 2 O HR Sector F Input F E R Executives 3. Focus Area # 3 E D Input P R Other 4. Professional E P Resources Development A R I N G Oct/Nov 2009 Dec 2009 Jan 2010 5
  • 6. Executive Input Importance Desirability Matrix P Comp OD High E LD R C EES T F O TM O PM R Medium R M A N C E Low Less Same More Support Level Desired EES Recruitment Comp OD Talent Mgmt Onboarding Perf Mgmt Trng Comms Leader Dvpmt 6
  • 8. Executive Input: Select Comments • “[HR] does a great job, I get good support in all areas.” • “HR was very helpful on assisting in achieving business results translating ideas/survey results/corporate directives into meaningful action plans.” • “HR as a function has demonstrated the ability to perform the basics well and has earned the right to be a Business Partner.” • “Leadership development support is very limited, need more resources/programs.” • “Org. Effec/OD Consulting – lots of work involved with Maple and Cherry reductions. Both reductions were handled professionally.” • “In 2009, I found the HR support to be very good, the only challenge is that they are a little thin in resources which limits their ability to deliver as quickly as might be optimal. I sometimes wonder if we are not over driving the group. Good HR support takes time and is more than just filling in templates.” 8
  • 9. Executive Input: Select Requests • “Integrate the LTW concept more fully into the organization and culture. Better at articulating attributes that define each of the blocks.” • Biggest areas of concern/opportunities for 2010:  Transformation Training – organization needs to be prepared for major change in the way we sell products. New skills will be needed as well as different approaches. This work is related to the Channels project which will also require HR work as we move forward.  Compensation – need to keep an eye on balanced selling components and see if they are helping to achieve the business goals.  Employee Engagement - need to address issues/concerns identified in deep dives.  Retention – big concern that many people may be waiting until the job market improves and then will look to make a change.  Talent Management – need to continue what we are doing with a focus of increasing the High Potential pool.  Full integration of Respironics mid-year. • “Help in determining Marketing Training strategy across GSSNA for 2010” 9
  • 10. Aligning Agendas Our HR Strategy Philips Management Philips People Healthcare People Agenda 2010 Agenda 2010 Agenda 2010 Healthcare Mgmt Agenda 2010 Management Agenda 2010 GSSNA GCS 10
  • 11. HR Strategy Development Focus Areas Data Gathering 1. Organizational Effectiveness Corporate Data Analysis & Strategic Plan Strategy Formulation 2. Talent HR Sector Development Input Executives 3. Organizational Input Culture Other Resources 4. Professional Development 11
  • 12. 2010 HR Strategy Plan Focus Actions Areas (non-exhaustive list) Leaders 1. Organizational Effectiveness 1.1 Visicu, Emergin, & Respironics integration 1.1 Nancy K. 1.2 IS reorganization 1.2 Jim J. • Integrate acquisitions 1.3 Com Ops & Finance reorganizations 1.3 Janet & Jim J. 1.4 OD interventions 1.4 HRBPs • Org. simplification 1.5 Support various business initiatives; e.g., OACM, 1.5 Pertinent HRBPs • Reorganizations JEDI, Platinum, etc. 1.6 Strategic Workforce Planning 1.6 Tony, Enio, et al. 2. Talent Development 2.1 Conduct quarterly talent reviews 2.1 HRBPs • Foster talent 2.2. Identify TPs, HPs, and Promotables 2.2 HRBPs development mindset 2.3 Socialize “Leader-Led Development” 2.3 HRBPs 2.4 Offer Magellan, CORE, Inspire, Octagon, HPDC, 2.4 HRBPs and TPDC 2.5 Support College Hire Program 2.5 HRBPs 3. Organizational Culture • Influencing leader 3.1 Role-model, cascade, and support L2W behaviors 3.1 All behavior to increase 3.2 Coach managers on acting in ways to increase 3.2 All trust, accountability, and teamwork engagement: 3.3 Partner with managers to cascade Strategic Plan 3.3 HRBPs • Trust and practically position organizational actions • Accountability 3.4. Celebrate successes & reward good performance; 3.4 All • Teamwork e.g., HR Leadership Award 4.1 “Consulting & Communications Skills” Workshop 4.1 All 4. Professional Development 4.2 2010 HR Professional Development Series 4.2 All • Investing in ourselves 4.3 HR Book Club 4.3 All 12
  • 13.
  • 14. Philips Leadership Culture & Values Corporate Applied Practices Motivation Expected Behaviors Values (Reinforcing GSSNA Program) Shows passion for “Sense & Simplicity” • Consultative Selling • One List Focus (Playbook) We anticipate and Asks questions to learn customers Delight • Philips Promise exceed customer needs and success drivers Customers expectations • Promise Cycle (FP) Acts as a “One Philips” ambassador • Customer Satisfaction Survey Sets ambitious targets for himself and • Customer Segmentation others • Customer Based Solutions Deliver Great We continually raise Challenges status quo and seeks • Forecast Accuracy Results the bar innovative ways to accomplish work • Funnel Management Makes clear decisions and implements • Common Platform for Service Delivery with speed and discipline • Continuous Improvement (CCT) Attracts high performers and builds • Coaching & Mentoring strong diverse teams • Leadership & Managerial Skills We get the best from Development Develop ourselves and each Provides stretch development People assignments • Champion Structure (CCT) other Coaches and recognizes people ’s • Front Line Business Acumen contributions Development (CCT) Thinks as “One Philips” and acts as • Courageous Conversations (FP) owner We deliver more • 5 Speech Acts (FP) Depend on Each value by working as Trusts and empowers others • Accountability Cycle Other “One Philips” • Cross Functional Teaming (CCT) Works in teams and allocates resources to the most promising opportunities • Philips Promise Action Plan (CCT) 14
  • 15. Leader-Led Development • To maximize development opportunities across our organizations, we will emphasize the following three principles: 1. Leaders can play five keys roles to accelerate people’s development (see Slide 16) 2. Leaders should role model receptivity to feedback, recognizing their strengths and weaknesses, and following through on development goals, and 3. Employees should take responsibility for their own development 15
  • 16. Leaders’ Five Key Roles The roles capture the underlying activities (see graph below) that have the greatest impact on people’s performance. They rely on a leader’s privileged insight and position. In other words, leaders can become effective talent developers by relying on their natural strengths, experiences, and abilities. 16 * Based on “Leadership Development,” CLC, 2009
  • 17. Prepare, Act, Reflect, and Review (PARR) Model A PARR (Prepare, Act, Reflect, Review) is a 4-step methodology for linking skill development with work activities. Prepare Act Reflect Review Learning Model “What is the “What are the “What did I learn “What learnings for Managers and competency I activities that I from my can I share with Leaders must acquire?” should engage in?” experiences?” my manager and peers?” Coaching Model for “How can I help “What suggestions “What questions “What questions Direct Managers and contextualize the can I provide him or should I ask to should I ask to help Manager-Mentors competency he her based on my help him or her him or her further or she must personal reflect on his or explore his or her develop?” experience?” her learning?” learning?” 17 * Based on “Leadership Development,” CLC, 2009
  • 18. HR Professional Development Series Schedule Date Topic Leader Rita Allen 16-Mar-10 Emotional Intelligence (guest speaker) HR Book Club: "The Inner Game of Tennis: The Classic Guide to the 19-Mar-10 Enio Mental Side of Peak Performance" 29-Apr-10 M&A Mike Spahn HR Book Club: "Mojo: How to Get It, How to Keep It, How to Get It 11-May-10 Nancy K. Back if You Lose It" 18-May-10 “Common Legal Risks” Gerry Whitcomb Marie Moran & 26/27-May-10 Top of Your Game Consulting and Communication Skills Company 8-Jun-10 Mentoring Anetta HR Book Club: "Getting Things Done: The Art of Stress-Free 18-Jun-10 Greg Productivity" 22-Jun-10 Compensation / Benefits (tbd) Beth Grella tbd Strategic Workforce Planning Tony 13-Jul-10 SPIN Selling Jim J. 27-Jul-10 Finance for HR Dan Leonard 3-Aug-10 Influencing Skills Enrique 17-Aug-10 Sleep Biz Overview Ted 16-Sep-10 Political Intelligence Nancy K. 28-Sep-10 Systems Thinking Nicole 12-Oct-10 Cultural Differences Lora 27-Oct-10 Employment Value Proposition Sam tbd MBO Development Software Overview Pete/Will 17-Nov-10 UnDutchables Enio 18
  • 19. 2010 HR Goals: Q1 Update Individual 0 1 – Conduct one OD intervention 0 3 – Conduct at least 3 talent reviews/year 0 1 – Influence biz partner to do 1 training session 0 60% – Participate in development opportunities 0 1 – Participate in one major HR Sector/BG initiative Organizational 0 1 – Identify 1 new TPs 0 7 – Identify 7 new HPs 0 2 – Import 2 TP/HP from another BG/Sector 0 2 – Export 2 TP/HP to another BG/Sector 0 15 – Identify 15 openings for college recruits 19
  • 20. 20