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Rightsizing
Shaping businesses into better
competitors: The strategic HR
Management
challenge
Imran Ahmad
Strategic HR
challenges
Head HR
REDTAG Group
Session
Objective:
Strategic HR
challenges
e
c
u
Red onal
i
t
a
r
ope
I
t
O
R
s
e
o
s
c
i
m
i
M ax
n
i
a
t
s
u
s
d
n
a
y
t
i
l
d
i
b
n
a
t
a
f
o
e
r
pAgil
Be arket
M
e
v
i
s
n
o
p
res
Strategic HR
Challenges
MR.
BOSS
Shareholder
Expectation
Show me the
Money
! MM
P&L
Elements
Sales
Turnover
Cost of
Sales
Gross Profit
People Cost
Other
Expenses
Net Profit
Strategic HR
Challenges
Currency
100
100%
65
35
15
65%
35%
15%
5
15
5%
15%
4
Survival
Strategy :
Competitive
repositioning
MR.
BOS
Strategic HR
Challenges
Creating Business
Value
Surviv
al Kit
for
Busin
ess
Strategic HR
challenges
Strategic People
Capability
Efficient
Organisation
Structures
Operational
Effectiveness
Organisational
Culture
Focus on Core
Competence
7
Rationale for
rightsizing
Mr. Bosss
Strategy:
Rightsizing
Strategic HR
challenges
Rightsizing
options
What is Rightsizing
?
Strategic HR
challenges
Business
Portfolio
Analysis
Focus on
Core
Competenc
e
Evaluation
of
operational
Effectivenes
s
Internal
Structure
revamp
Internal
Process ReExaminatio
n
Headcount
& Role
Rationalisati
on
Choosing the
change
Strategic HR
challenges
Headcount &
Role
Rationalisation
Internal
Structure
revamp
MR.
BOS
10
Balancing
rightsizing
Re-Align
workforce
Competence
Adopt
considered
Hiring
Redesign
Competitiv
compensation
Outsource
/
e
Reduce NonCapability
core
activities
Services
Re-engineer
inefficient
processes
Structur
al
Function
s
Reduce
dispensable .
Retain valuable
Consolidate
Freeze Hiring
Services ,
Reduce Roles
Consolidate
Reduce
operations/
unnecessary
Organisati
Structural
locations
hierarchy
Implement
onal
Right-size
Competen
the
multi-tasking
&
Expense
Agility
ce
job sharing
structure
Leverage Technology
Reduce Non Performers
11
Managing Change
The Right
Company Leadership
Leadership
( Led & facilitated by
Strategic HR
Challenges
HR )
Identify Vision , Plan and expected
Goals
Identify the suitable rightsizing
choices
Determine scope of the
implementation
Communicate to and Align people
Evaluate potential costs
Prepare communication plans
Prepare survivor plans
12
Practices &
Behaviours
Respectful
Departure
Communicate
facts honestly
Provide
reasonable
severance
package
Strategic HR
Challenges
Complete
detailed
Documentation
Treat people
with dignity
Choose Right
timing during
the year
13
Practices &
Behaviours
Ensure
Retention
Strategic HR
Challenges
Training
Reemphasize
the company
vision & goals
Introduce
efforts to
enhance
competence &
skills
Make leaders
visible and
supportive
during
rightsizing
Monitor and
track the
deployment of
future plans
Develop a
culture of
Accountability
& rewards
Create
engagement
Events and
ensure a
culture of Zeal
14
Avoiding pitfalls
Critical
Success
Factors
Strategic HR
challenges
Action
Planning
Strong HR Honest
Leadership Communica
tion
Proper
investme
nts
Costbenefit
Analysis
15
A live Example
Strategic HR
Challenges
16
Rightsizing
example
KSA :2010-2011
Automotive
Backgro
industry
Rightsizing driven by Sustained losses
und
Strategy
Rightsizi
ng
Initiativ
es
Strategic HR
Challenges
Trackers
Unit
Volu
me
Outcom
es
Higher
unit
Volume
Invent
ory
Profits
Focus on
Credit &
Collections
Renegotiate
d Loans &
interest
New Talent
Made
New Comp &
Roles
Ben
Redundant
structure
CSI
Servi
Function
score
ce
al KPIs
s
KPIs
Satisfied
customers
A new
busines
s unit
17
Limiting Risks
Optimising
Strengths
A Quick Summary
Strategic HR
Challenges
18
Quick Summary
Wrap Up
Strategic HR
challenges
Potential WinningLikely
Risk Strategies
Strengths
There are several areas
Process
for
Emotional
rightsizing-choose Efficiencie
most
costs
appropriate
s
Ensure proper due diligence
Process
Optimised
for short-& long term
disruption
Structures
associated costs .
Strong Leadership is key to
Re-tooling
Capability
achieving desired rightsizing
Costs
bandwidth
benefits
Best
Organisati
practice behaviour will
Higher
ensure
onal
talent retention and
Cash flows
performance
Stress
Culture
19
Strategic HR
Challenges
20