HR Business Partnership is all about strategic thinking; it is never meant to be a strategic function. It is a tactical role that requires strategic mindset.
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HR Business Partnership: Do our business partners really hear us?
1. Oliver C. Requilman
Coca – Cola FEMSA
HR’s VOICE in ACTION: Do Business
Partners Really Hear HR?
Oliver C. Requilman, DBA, 5th September,
2013
2. HR BUZZ as it is TODAY
• More senior population,
no ready next gen
• Performance
measurement
• Talent Management
and Acquisition
• Internationalization or
globalization of HR
• Leadership
development
•
•
•
•
•
Outsoursing
Diversity
Shared services
Cost optimization
Engagement and
empowerment
• Global HR mobility
• From Human Capital to
Human Development
Oliver C. Requilman, DBA, 5th September,
2013
3. The Evolution of HR
Oliver C. Requilman, DBA, 5th September,
2013
4. Origins of HR
A Brief History of HR Management
End of 18th
Century:
Welfare
Officers
• Protection for female
employees &
children
• Care for injured &
sick employees
• Created in respond
to harshness in
industrial conditions
The World
Wars:
Labour/
Employment
Manager
• Administration of
absence, training &
recruitment
• State / Trade Union
partnerships
• Handled queries on
compensation
matters
• Employee data
1945 – 1979:
Personnel Mgt
• Welfare &
employment mgt
were integrated ď‚®
Personnel Mgt
• Output could be
influenced by
employment policies
• Structured
compensation policy
• Collective bargaining
& IR
• Specialized functions
(70’s)
1980 –
2000:
Human
Resource /
Compliance
Officer
• Administrator &
technical expert
• Focused on
improving efficiency
& effectiveness
• Compensation
engineering as key to
productivity
(incentive plans,
deferred comp,
options)
Oliver C. Requilman, DBA, 5th September,
2013
2001 till
now:
Strategic
HR
• Strategic Business
Partner
• Change Agent
• Employee Champion
• COE
• Share service
5. The Evolution of HR
The HR Journey of an “HR Professional”
High
Value → Impact/Contribution to the Business
Strategic
HR
Human
Resource
Management
Personnel
Management
Labor
Manager
Welfare
Officer
1890 - 1913
2nd Industrial Revolution
1914- 1939
• Administrative
focus
• Compliance
• Traditional mind
set
• Limited scope of
activity
• Specialized
functions
1945 - 1979
World WarsInternal use
Classified -
• Administrative
focus with
enlarged scope of
activities
• Support function
• Less reactive &
more proactive
1980- 1990
Globalization
• Business Partner
• Focus on valueadded activities
• Proactive
• Multidisciplinary
• Multi-faceted
roles
2000 till now
6. The Evolution of HR
The HR Journey in Nature and Scope of Work
continue
to evolve
High
Value → Impact/Contribution to the Business
Strategic
HR Planning
HR as
Business
Partner
Organizational
Design
Survey Action
Planning
Staffing
Transactional
Work
Performance
Management
Share
d Svc
Centr
e
Culture
& Image
HRIS
Employee
Relations
Labor/Union
Relations
Safety &
Workers’
Compensation
COE
Training &
Development
Benefits
Compensation
Transformation
al
Work
Compliance
Welfare /
Employee
Care
Employee
Welfare
Labor
Relations
Employee
Personnel
Relations
Admin
Classified - Internal use
Human
Resource
Organizational
Effectiveness
Source: Rich Vosburgh
7. The Changing Role of HR
Oliver C. Requilman, DBA, 5th September,
2013
8. What CEOs Really Want from HR?
Just a quick REALITY CHECK!
Employers want HR to address strategic issues involving the
competitiveness and performance of the firm… More than the
role of protector and administrator.
Oliver C. Requilman, DBA, 5th September,
2013
9. What CEOs Really Want from HR
Reality Check
The business
environment:
Globalization
Economic
uncertainties
Technology
innovations
Profitability thru
Cost & Growth
Intensified
Competition
Requires companies
to focus on:
Increasing value
Organizational
capabilities →
fast, responsive,
cost effective
Creating climate
for action
Unique
competitive
advantage
Oliver C. Requilman, DBA, 5th September, 2013
Requires HR to
change:
Business savvy
Align with
strategy
Strong bench
strength
Change catalyst
Help biz leaders
to achieve
objectives
10. The Changing Role of HR
Reality Check
A survey of 500 HR directors across
Europe, the Middle East and Asia, found out
that only 15% of the activities carried out by
HR departments are related to "pure
strategic interventions".
Watson Wyatt Study
Oliver C. Requilman, DBA, 5th September, 2013
11. The Changing Role of HR
The Shift in the Balance of HR Roles
HR needs to realign its service delivery model to
add more strategic value to the organization
Strategic
15%
Strategic
60%
Transactional/
Operational
85%
Transactional/
Operational
40%
% of available resources
Classified - Internal use
12. The HR Business Partnership
Model
Oliver C. Requilman, DBA, 5th September,
2013
13. 3 main workstream of
HR Business Delivery
HR DELIVERY
HR Business
Partnership
Center Of
Excellence
Oliver C. Requilman, DBA, 5th September,
2013
Shared
Services
14. The Role of HR
Ulrich’s Four-Role Model
Four Roles for HR
• Administrative Expert
• Employee Champion
• Change Agent
• Strategic Partner
Dave Ulrich identifies four distinct roles of HR
professional that may add value to a business and
create sustainable competitive advantage.
Classified - Internal use
15. The Roles of HR
Ulrich’s Four-Role Model
Future/Strategic Focus
Strategic Partner
P
R
O
C
E
S
S
E
S
Change Agent
Aligning HR & Business Strategy
Managing Transformation & Change
Active Role in setting strategic direction
Effecting Transformation & Change
Administrative Expert
Employee Champion
Managing The
Firm’s HR Infrastructure
Managing Employees’
Contribution
Process Optimization & Efficiency
Motivated & Competent Personnel
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering
Results, 1996
Day-To-Day/Operational Focus
Classified - Internal use
P
E
O
P
L
E
16. The Roles of HR
Ulrich’s Four-Role Model
Future/Strategic Focus
Strategic Partner
P
R
O
C
E
S
S
E
S
• Develops & aligns strategies with biz
• Assists line managers in solving
organization, people & change-related
issues
• Contributes to management team’s strategic
decision-making
• Fosters systems thinking, customer focus
• Strategically manages workforce
development
Administrative Expert
• Creates and delivers effective & efficient HR
processes and services tailored to unique
business needs
• Manages people & HR related costs
• Ensures internal &external customer focus
• Applies information technology to rapidly
deliver quality HR products and services
Change Agent
• Understands the organization’s culture &
what is effective and ineffective
• Institutionalizes change capability within
the organization
• Assists line managers to lead & facilitate
change
• Acts as a consultant in organizational
effectiveness
• Enhances management development
Employee Champion
• Develops strategies and helps implement
actions that enhance human capital
contribution
• Helps build workforce commitment
• Ensures fair, ethical, and equitable people
processes and practices
• VOE
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering
Results, 1996
Day-To-Day/Operational Focus
Classified - Internal use
P
E
O
P
L
E
17. The Roles of HR
Ulrich’s Four-Role Model
Future/Strategic Focus
Strategic Partner
P
R
O
C
E
S
S
E
S
• Develops & aligns strategies with biz
• Assists line managers in solving
organization, people & change-related
issues
• Contributes to management team’s strategic
decision-making
• Fosters systems thinking, customer focus
• Strategically manages workforce
development
Change Agent
• Understands the organization’s culture &
what is effective and ineffective
• Institutionalizes change capability within
the organization
• Assists line managers to lead & facilitate
change
• Acts as a consultant in organizational
effectiveness
• Enhances management development
when NOT done well… create a lot
of issues
Administrative Expert
• Creates and delivers effective & efficient HR
processes and services tailored to unique
business needs
• Manages people & HR related costs
• Ensures internal &external customer focus
• Applies information technology to rapidly
deliver quality HR products and services
Employee Champion
• Develops strategies and helps implement
actions that enhance human capital
contribution
• Helps build workforce commitment
• Ensures fair, ethical, and equitable people
processes and practices
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering
Results, 1996
Day-To-Day/Operational Focus
Classified - Internal use
P
E
O
P
L
E
18. The Roles of HR
Ulrich’s Four-Role Model
Future/Strategic Focus
Strategic Partner
P
R
O
C
E
S
S
E
S
• Develops & aligns strategies with biz
• Assists line managers in solving
organization, people & change-related
issues
• Contributes to management team’s strategic
decision-making
• Fosters systems thinking, customer focus
• Strategically manages workforce
development
Administrative Expert
• Creates and delivers effective & efficient HR
processes and services tailored to unique
business needs
• Manages people & HR related costs
• Ensures internal &external customer focus
• Applies information technology to rapidly
deliver quality HR products and services
Change Agent
• Understands the organization’s culture &
what is effective and ineffective
• Institutionalizes change capability within
the organization
• Assists line managers to lead & facilitate
change
• Acts as a consultant in organizational
effectiveness
• Enhances management development
Employee Champion
• Develops strategies and helps implement
actions that enhance human capital
contribution
• Helps build workforce commitment
• Ensures fair, ethical, and equitable people
processes and practices
when done well give the organization
a great strategic advantage
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering
Results, 1996
Day-To-Day/Operational Focus
Classified - Internal use
P
E
O
P
L
E
20. HR as Strategic Partner
Participates in designing & defining organization’s
strategies
Contributes to management team’s strategic decisionmaking
Focuses on aligning HR strategies & practices with
business strategy ď‚® translate business strategy into HR
priorities
Strategically manage people & infrastructure to support
the execution of strategies & the creation of value
Strategically manages workforce development
Deliverable/outcome: Strategy execution
Classified - Internal use
21. HR as Strategic Partner
Core Competencies
HR as Strategic Partner should be able
to:
Facilitate strategy
development for business
teams by using different
techniques
Strategic Partner
Core Competencies
Business Mastery
Plan and facilitate strategy
deployment to the whole
organization
Personal Credibility
Align the organization
strategy with the business
strategy to ensure it will be
delivered
HR Mastery
Redesign the organization to
support strategy
Classified - Internal use
22. HR as Strategic Partner
Becoming A Strategic Business Partner
Becoming A Strategic Business Partner
Knowledge
Requirements
Bring strong technical
Bring strong technical
expertise to the table
and an understanding
of your company and
its strategy.
Develop new skills asas
Develop new skills
needed. Understand
the data, the
financials, the market,
etc.
Staying focused on
Staying focused on
issues that matter to
issues that matter to
the business
the business
Delivering capabilities
that make a real
difference
What are the issues that
What are the issues
that matter?
matter?
What’s keeping business
What’s keeping
business leaders up at
leaders up at night?
night?
What’s the “elephant on
What’s the regarding
the table” “elephant
on the table”
the future?
regarding the bottom
What drives the future?
What drives the
line?
bottom business
Focus on line?
Focus on business
objectives
objectives
Focus on environment
Focus on environment
Provide organizational
Provide organizational
capabilities as
required by the
business
strategy objectives:
People
People
Goal alignment
Strategy
Culture
Culture
Classified - Internal use
23. HR as Strategic Partner
Becoming A Strategic Business Partner
Becoming a business partner sounds
easy but in practice demands a shift in
mindset and capability
Being a Business Partner, it does not say anything about the strategic level. It
does say alot something about the attitude and the relationship with the line
– managers, the client. (“Working as a Business Partner, Rick Lash,
HAYGROUP)
Classified - Internal use
24. HR as Strategic Partner
Mindset Shift
Becoming a true "player" on strategic business issues →
able to challenge business leaders on their own ground
Architect who can synthesize best practices e.g. Total
Reward, Talent Management, OD, etc into integrated
solutions and implement at speed
Shifting from advising and consulting to challenging,
provoking, confronting business leaders
Letting go of the past and engaging with the future
Classified - Internal use
25. HR as Strategic Partner
You are moving towards Strategic Partnering When…
You are involved in discussions (by invitation!) on the "people
implications" of a change or a new initiative in the organization before
things go wrong
Line Managers in confide in you about their concerns and problems, even
when you are not providing a solution then and there
Managers encourage you to tackle issues in their areas and express
confidence in your ability to do things you may never have done before
You engage in genuine dialogue with line managers
The time frame of your work moves from present/past to future especially longer term future
The "why” of what you is doing is very clear - in terms of organizational
need (not "because we always do it/ have done it)
Classified - Internal use
26. In closing, here is a way of looking at
the added value of HR Business
Partnership.
1.FOCUS : HR Business Partners must
have direct and focused activities.
2.ORGANIZE : Learn to translate the HR
goals into structures, process and
systems.
3.ACT : Identify needed behavior and
skills to realize the Business Goals.
Oliver C. Requilman, DBA, 5th September,
2013
28. FREQUENTLY ASKED QUESTIONS
Is HR Business Partnership Model applicable to a simple
– line organizational design?
We are not a group of companies, how can we build up
HR Business Partnership without the COE and Shared
Services work stream?
How different is HR Management from HR Business
Partnership?
We are a group of companies, when is the ideal time to
start with Business Partnership Model? Can it operate as
a separate SBU?
Classified - Internal use