How Human Resources Management (HRM) powers the Intelligent Enterprise - practices, models and strategies

1. THE ROLE OF HRM IN POWERING AN
INTELLIGENT ENTERPRISE
CHARLES COTTER PhD, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
FNB CONFERENCE CENTRE, SANDTON
5 AUGUST 2019

2. PRESENTATION
OVERVIEW
• Defining the Intelligent Enterprise
• Building a business case for the crucial role
and contribution of HRM in powering the
Intelligent Enterprise
• Harnessing the convergence of Human,
Artificial and Business Intelligence
• Applying the 7 principles of Evidence-based
HRM, to optimize HRM decisions
• Leveraging HRM Metrics and Predictive
Analytics

3. HAPPY WOMEN’S MONTH!

4. DEFINING THE INTELLIGENT ENTERPRISE
• "Intelligent Enterprise" refers to a management approach
that applies technology and new service paradigms to the
challenge of improving business performance.
• The concept, as articulated in James Brian Quinn’s seminal
book Intelligent Enterprise (Free Press, 1992) posits that
intellect is the core resource in producing and delivering
services. The book describes the management approach and
computing infrastructure needed to harness that intellect
effectively.
• This approach is referred to in business jargon as Knowledge
Management, of which Quinn was an important proponent.

6. DEFINING THE INTELLIGENT ENTERPRISE (SAP)
• The Intelligent Enterprise is a strategy that allows
organizations to rapidly transform data into insight
– feeding process automation, innovation and
optimal experiences.
• https://www.sap.com/africa/products/intelligent-
enterprise.html
6

7. TRANSFORMING FROM DATA TO
(STRATEGIC BUSINESS) IMPACT

9. DELOITTE HUMAN CAPITAL TRENDS
(2018 - 2019)

10. FUTURE OF WORK
“There are really three themes
that’ll shape the future of
talent:
1. Artificial Intelligence and
automation;
2. The skills gap and
3. The rise of independent
work.”
(Jeff Weiner, CEO LinkedIn)

13. STRATEGICALLY CAPITALIZING ON AI –
APPLING THE 3 A’s (MEISTER, 2018)

14. 6 HIGH PRIORITY STRATEGIC HRM
OBJECTIVES AND RELATED ROLES
• #1: Attract, acquire and select top talent - promote a competent and competitive workforce i.e. quality of
hire;
Role: Cognitive and Intelligent Talent Broker
• #2: Transform to a digitally-enabled HRM operating model and design an Intelligent Enterprise (automated
Knowledge Management System);
Role: Strategic Performance Advisor (SPA)
• #3: Future-proof the organization, by developing a measurement culture and generating real-time predictive
business analytics and –intelligence;
Role: Digital Futurist and –Analyst
• #4: Develop an agile High-Performance Organization (HIPO) culture and a high level of employee
engagement;
Role: Behavioural Economist
• #5: Mainstream HRM into core business processes, by offering business valued solutions to key
organizational problems
Role: Innovative solutions architect
• #6: Develop a HRM Governance framework, processes, principles and promote an ethical organizational
culture, espousing and enacting core company values.
Role: Advocate, Custodian and Steward of governance and ethics

15. SHRM FOCAL POINTS
(Cotter, 2019)
• Culture –
❑ HIPO
• Structure –
❑ Lean
• Processes –
❑ Agile
• Systems –
❑ Digital Intelligent
• People –
❑ Future-fit and Engaged Brand Ambassadors

16. BUSINESS INTELLIGENCE
(Level 3 of strategic HRM maturity –
transformational)
HRM STRATEGY
(Level 4 of strategic HRM maturity –
strategic)
HRM GOVERNANCE
(Level 1 of strategic HRM maturity –
traditional)
WORKPLACE ADVOCACY
(Level 2 of strategic HRM maturity –
transactional)
STRATEGIC
PERFORMANCE
ADVISOR
(Cotter, 2019)
STRATEGIC
TRANSACTIONAL
CURRENT FUTURE-FOCUSED
FRAMEWORK
PREDICTIVE
ANALTYTICS

17. STRATEGIC PERFORMANCE ADVISOR OPERATING MODEL
(COTTER, 2019)
• HRM Governance (e.g. HRM policies and procedures; HRM/people risk management, compliance with
ethics and x17 King IV corporate governance principles; Human Capital reporting; promoting workplace
democracy and HRM Auditing) – Level 1 of strategic maturity - transactional/current.
❑ Transition from level 1 to 2 – CRAFTING OF A HRM GOVERNANCE FRAMEWORK
• Workplace Advocacy (e.g. Employee engagement; employee voice; EVP; employee retention;
succession planning; creating a workplace culture of brand ambassadors; mainstreaming HRM and
creating future-fit employees) – Level 2 of strategic maturity - transactional/future-focused.
❑ Transition from level 2 to 3 – FUTURE-PROOFING OF THE BUSINESS MODEL
• Business Intelligence (e.g. competitive predictive HR metrics and analytics; future-proofing the business
model; applying evidence-based HRM; creating HIPO; knowledge management and collaborative
intelligence i.e. integrating and harmonizing AI, HI and BI and being trouble-shooting solutions
architects) – Level 3 of strategic maturity - strategic/current.
❑ Transition from level 3 to 4 – APPLYING PREDICTIVE ANALYTICS
• HRM Strategy (e.g. embedding HRM strategy into business strategy; the use of strategy maps; adopting
a strategic mindset and applying strategic management principles and processes) – Level 4 of strategic
maturity - strategic/future-focused.

18. THE 4 ROLES OF HRM IN
POWERING AN
INTELLIGENT ENTERPRISE
• Sense-Maker –
Governance
• Deal/peace-Maker –
Advocacy
• Rain-Maker –
BI
• King-Maker –
Strategic

19. THE NATURE OF THE BUSINESS/TECHNICAL
ENVIRONMENT – V-U-C-A

20. THE 5 KEY CONTRIBUTIONS OF HRM IN A
INTELLIGENT ENTERPRISE
• When things are complicated, HRM must simplify;
• When there is employee concern, HRM must facilitate
commitment;
• When there is confusion, HRM must clarify;
• When working with and analysing large volumes of
Big Data, HRM must distil, not dilute and
• When there is discord and division, HRM must
energize, not polarize.

21. 7-POINT HRM TRANSFORMATION
(COTTER PhD, 11 JANUARY 2019)
• "In order to be feasible, to prosper professionally in
2019 and to be future-fit, HRM will have to exchange
the currency in which they trade from old notes to
noteworthy, Industry 4.0 and business relevant
denominations and value. Specifically, this change
translates from:
• 1. feelings to facts;
• from 2. anecdotal to analytical;
• from 3. hindsight to foresight;
• from a 4. business tributary to mainstream;
• from 5. intuition to intelligence;

23. 7-POINT HRM TRANSFORMATION
(COTTER PhD, 11 JANUARY 2019)
• "In order to be feasible, to prosper professionally in
2019 and to be future-fit, HRM will have to exchange
the currency in which they trade from old notes to
noteworthy, Industry 4.0 and business relevant
denominations and value. Specifically, this change
translates from:
• from 6. best practice (imitation) to next practice
(innovation) and ultimately,
• from 7. a cost to a profit centre.
• Generally, this 7-point transformation means an
upgrade to Evidence-based HRM."

25. EVIDENCE-BASED HRM
• Evidence-based HR refers to a process in which the
organization evaluates any decision or process
against data, real experience, expert opinions,
and/or other types of information to ensure the
decision is likely to have the desired outcome.
• For this to work best, the “evidence” used should
be purposefully sought out.
• When data is taken from multiple sources, ensure
it’s applicable within your context.

27. WHAT BUSINESS EXECUTIVES
ARE LOOKING FOR IN HRM?
• #1: Catalytic Driver of Change
• #2: Pro-active Business Thinker
• #3: Collaborative Consultant
• #4: Purpose-directed Coach
• #5: Delivery (results-oriented HR
practices)
• #6: (Credible and Accountable)
Performance Advisor
• #7: Strategic Facilitator
• https://www.youtube.com/watch?v=Ca
ld7kzCgkc

28. 70% 20%10%

29. CHANGE
MESSAGE
TO HR
MANAGERS
(Cotter,
2018)
"HR Managers & -Professionals will have to transform
to Behavioural Economists who trade in competitive
predictive analytics and business intelligence and who
have an in-depth and rich understanding of the
mechanics (structures, processes, systems & operations)
and dynamics (culture, values, emotions & attitudes)
and how these influence key business decision-making"

30. CHANGE MESSAGE TO HR MANAGERS
(Cotter PhD, 2018)
"HRM must be instrumental in and at the
forefront of the I-Q-C-A-P drivers of
business performance, namely:
Innovation; Quality; Compliance; Agility
and Processes (to optimize productivity),
in their quest to transform and actualize
to become strategic performance
advisors."

32. STRATEGIC CHANGE AGENDA - IMPROVEMENT
RECOMMENDATIONS – SPA (COTTER, 2017)
• #1: Transition from transactional to transformational HRM;
• #2: Transition from a cost to a profit centre;
• #3: Acquisition of more advanced, business relevant skills by HR
Professionals;
• #4: Migration from manual to automated/digital HRM – 1G to 4G
technology;
• #5: Migration from fundamentals of people science to the complexities of
data science and
• #6: Transition from administrative expert to strategic performance
advisor.
• https://www.youtube.com/watch?v=PB2P1AlLC-I

34. HRM METRICS/ANALYTICS TASK TEAM – 2019?

35. THE FUTURE OF HRM METRICS &
ANALYTICS?
“HRM will have to migrate from the
fundamentals of people science to the
complexities of data science.”
(Cotter, 2017)

36. HRM
ANALYTICS
PROCESS

37. 5-STEP HRM
ANALYTICS
PROCESS
Step 5
Project and take action to communicate
metrics and related insights information to
provide a robust basis for strategic change
and improvement
Step 4 Draw out insight from the data
Step 3 Obtain data relating to relevant metrics
Step 2 Develop appropriate metrics around
these areas
Step 1 Identify where HRM can make a strategic
impact in the organization

41. CONTACT DETAILS