3. HR Path To Progress Value Past Present Future Supporting the Business Being a Business Partner Being a Business Driver Value is derived from owning and being accountable for processes that deliver business results We need to rethink the work of HR
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5. How Value is Delivered to Investors Keeps Promises Compelling Strategy Core Competencies Organizational Capabilities INTANGIBLE VALUE Make and meet commitments to employees, customers, suppliers, investors… Convincing approach for continuing to create value and extending that ability into the future Clear ability to realize value creation potential and to continue track record of keeping promises Internal ability to make things happen efficiently and effectively now and in the future
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8. “ Adapted from Kaplan, Robert S. and David P. Norton; The Balanced Scorecard: Translating Strategy Into Action. Boston: Harvard Business School Press, 1996” Financial How do we create value? Customer What do our customers expect and value? Process To satisfy our customers, at what processes must we excel? Learning & Growth To achieve our vision, how must we learn, innovate, and improve? Business Results Growth Strategy Productivity Strategy Value Proposition Cost Quality Time Function Relationship Value Chain: Path to Performance Develop New Services Business Performance Levers + + + Enabling Capabilities Build the Brand Make the “ Sale” Deliver the Service Assess Effectiveness in Meeting Need Balanced Scorecard Strategy Map P erspectives Skills and competencies Technology and databases Knowledge assets, best practices Context, Climate, Culture
9. How HR Practices Create Value HR Practices Performance Work People Communication Buy Build Borrow Bind Set standards Ensure consequences financial non financial Do feedback Build communication top down/ bottom up inside out/ outside in side to side Restructure organization Reengineer work process Manage teams Architect physical setting
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11. Economic Value Generate Growth Potential Increased Return Lower Cost of Capital Business Expansion Improved Competitiveness Operational Efficiency Organizational Effectiveness Optimal Capital Structure Increased Market Share Revenue Growth Improved Profit Margin Improved Asset Turnover Debt Equity Ratio Risk Profile New Products Market Awareness Customer Service New Distribution Channels New Markets Cycle Time Cost Management (e.g., overhead costs, operating costs) Metrics Market Segmentation Rationalize Business Processes/Units Resource Utilization Key Outcomes Percent of New Product Revenue /Total Revenue Regional Breakdown of Sales New Market/Total Sales Percent Promotional Expense /Total Revenue Brand Equity Scores Customer Satisfaction Operating Costs/COGS Overhead Costs/Total Accounts Receivable Turnover Plant Assets Turnover Inventory Process Costs/Time ABC Costing Engagement Level Performance Measures Process Costs/Time and Key Processes Hierarchy Levels Brand Value Creation Business Processes Fundamental Corporate Results Entrepreneurship Innovation Accountability Speed and Sense of Urgency Measured Risk Customer Focus Teamwork and Collaboration Behaviors Executing strategy - From intangible sources Linking Shareholder Value and People
16. HR of the Future–Four Bold Bets on Where HR Is Headed Organizational Steward HR of the Future is assuming a renewed role in building a sense of community, trust and integrity, and even spiritual meaning for the organization. High Performance HR of the Future is taking accountability for driving performance at the organization, team, and individual levels. Talent Engine HR of the Future is redefining and expanding its focus in the area of talent by managing a seamless “human capital supply chain” to ensure the organization has a ready supply of top talent. Human Capital R&D HR of the Future is taking the lead in advanced data mining and predictive modeling of human capital processes to identify new business insights. HR of the Future
17. Next Generation HR Cost Talent Supply People Process People Outcomes Business Performance Leadership & Key Talent Capabilities High Performance Employment Relationship People Administration Value Growth Profitability Return Innovation Continuous Supply of Qualified Talent Building High Performance Workforce Operational Efficiency & Effectiveness Growth in Key Capabilities Compelling Employment Bond