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HR’s Future Value Creation:

Principles, Targets, and Actions

Dave Ulrich
Rensis Likert Professor, Ross School of Business,
University of Michigan; Partner at The RBL Group
dou@umich.edu
www.rbl.net
2
Begin with the end in mind … let’s stay connected

To get a copy of these slides, visit our website:

www.rbl.net/webinars/hr-future-5-principles-3-outcomes-and-2-hr-actions

Also, please follow Dave Ulrich on LinkedIn to view my regular posts with insights and tips.
Overall Goals and Agenda 3

IDEAS HR's Future Value Creation IMPACT

HR’s Fundamental Assumption: Value-Added Outside In

COVID-19 Crisis and HR Response

5 Principles in HR

Three HR Deliverables: Talent, Leadership, Organization

2 HR agendas: department and competencies


HR Value Creation Logic: Polling Question 4

What is the most important “thing” that HR can give an employee?








Value Creation Logic: Question 5

What is the most important “thing” that an organization can give an


employee?

Please select one:


1. A sense of belief (meaning, purpose)
2. An ability to become better (learn, grow)
3. A feeling of belonging (community, relationships)
4. All the above
5. None of the above
Value Logic 6

What is the most important “thing” that HR can give an employee?




• An organization that
• succeeds in the
• marketplace

Who are HR stakeholders? Think HR Outside-In 7

Reputational value
• Social responsibility (CSR)
Market value • Planet
Social
• Financial Investors/ • Political setting
Citizenship
performance Owners • Philanthropy
Responsibility
• Intangibles
• Risk

Customer share Collaborative


Key Partners/
• Target value
Customers Stakeholders
customers Dealers • Partnerships
• Customer • Outsourcing
intimacy

Employee value/ Strategic value


Productivity Employees Line Managers • Shaping strategy
• Competence • Creating
• Commitment organization traction
• Contribution
Overall Goals and Agenda 8

IDEAS HR's Future Value Creation IMPACT

HR’s Fundamental Assumption: Value-Added Outside In

COVID-19 Crisis and HR Response

5 Principles in HR

Three HR Deliverables: Talent, Leadership, Organization

2 HR agendas: department and competencies


Corona Virus headlines 9
Coronavirus: New terms and ideas 10

Social distancing Ventilator


Global pandemic

COVID-19 Community spread


Coronavirus tests
N95 masks Quarantine
Flattening the curve
Epidemic Drive Through Testing

Shelter-in-place Incubation period


Personal protective
equipment
Virtual work
Self quarantine Stay at home order

Essential businesses Herd immunity


Close contact Lockdown
(6 feet)
Response to the Context 11

Context:
Content is king; Context is kingdom

How to respond to the Corona (or other) crisis, as individuals, leaders, and organizations?

THREAT OPPORUTNITY
Focus on weakness and what’s wrong Focus on strengths and what’s right
• Individual emotions of fear, anxiety, • Individual emotions of hope, control,
hopelessness, despair, cynicism, loss anticipation, optimism, resilience,
• Organizational conditions of DISCOVER • Organizational conditions of
psychological risk/low morale, strategic emotional well being, strategic focus,
haze, cultural malaise, brand ambiguity, “right” culture/brand, financial discipline
financial freefall • Leadership actions of empowering
• Leadership actions of disorientation, others, offering guidance, getting things
agitation, desperation, frustration done, instilling confidence
HR Next Steps Comes from Theory, Research, and Experience 12

Talent Accelerator Research Defining and Assessing


13 dimensions of talent and Organization Capabilities
TALENT ORGANIZATION
impact on outcomes in 450+ and impact on stakeholders
Competence global companies Capability 1,200 global organizations; deep
Workplace interventions in 100+ companies
Workforce Best selling books on talent
People Process 10 books on redefining
100’s of interventions on organization logic
talent upgrade and impact
HR
What’s next?
Top companies for
leadership (Fortune ; 3 rounds 30 year/7 rounds of HR
LEADERSHIP 500 companies each)
HUMAN Competency Study
BRAND Over 120,000 respondents; HR’s
Leadership Code (30,000 r’s) RESOURCES impact on stakeholder value;
Individual leaders Leadership Brand (100 org’s)
EFFECTIVENESS 100’s of HR transformations
Leadership Leadership Capital Index
pipeline A dozen books defining HR role,
10 books defining effectiveness and impact
leadership impact
Overall Goals and Agenda 13

IDEAS HR's Future Value Creation IMPACT

HR’s Fundamental Assumption: Value-Added Outside In

COVID-19 Crisis and HR Response

5 Principles in HR

Three HR Deliverables: Talent, Leadership, Organization

2 HR agendas: department and competencies


Dimensions of Opportunities of Coronavirus Crisis 14

1. Personalize/customize
2. Redefine Boundaries of work
3. Navigate paradox
4. Harness Uncertainty
5. Provide guidance

Principles
in Progress
Principle 1: 15

Tailor offerings: Customize/personalize work


Principle 2: 16

Redefine work boundaries; Move from place to values


Can I connect my work to a vision and values I care about?

Laying bricks Putting up a wall Building a cathedral


Principle 3: 17

Navigate paradox: Handle tension and duality

Paradox can be seen as oxymorons (big baby, bittersweet, deafening silence,


jumbo shrimp, open secret, passively aggressive, sweet sorry, tough love) or
things that seem to oppose to each other. In life, we live with paradoxes.

Some paradoxical statements:


1. Modern dancing is so old fashioned. - Samuel Goldwyn
2. No one goes to that restaurant anymore. It's always too crowded. - Yogi Berra
3. A joke is actually an extremely really serious issue. - Winston Churchill
4. You'd be surprised how much it costs to look this cheap. - Dolly Parton
5. It usually takes more than three weeks to prepare a good impromptu speech. -
Mark Twain
Paradoxes in The Coronavirus Crisis 18

Care for the Individual vs Attend to the Organization

Bold, short term actions vs Enduring long term values

Convergence for Focus vs Divergence for Variety

Resilience: Learn from the vs Aspiration: Celebrate the


Past Future
Personal Skills of Paradox Navigator 19

Definition/behavior Rate
What are specific behaviors associated with skill… (1 to 10)
• See different sides of an issue
1
• Respect someone else’s point of view
Deal with cognitive
• Learn new ideas (20 to 25% every 2 years)
complexity
• See patterns in events
• Disagree without being disagreeable
2 • Allow for tension without having contention
Be socially endearing • Listen to understand
• Help others feel better about themselves after meeting with me
• Spend time with people who are not like me (e.g., visit shop floor)
3
• Observe and learn from those not in your zone of influence (competitors,
Be socially connected
customers, leading players)
• Know my predispositions (e.g., introvert vs. extrovert; judging vs. perceiving)
4 or style
Be personally aware • Not be bound by my predispositions and see beyond my biases
• Judge myself less by intent and more by my behavior
5
• Know my core values and act consistently with them even if behaviors vary
Be grounded in a strong
• Avoid pandering to different groups, while respecting their requirements
set of values
Principle 4: 20

Harness uncertainty: Focus on what can be done

False Realistic Give up


hope optimism or give in

“Harness” Uncertainty
• Have realistic optimism about
what can happen looking
forward
• Use the uncertainty as an
inflection point for reinvention,
transformation or reimagination
• Co-discover and co-create a
more positive future
Principles to Harness Uncertainty 21
Turn mindset from threat
into opportunity

Tame
Apprehensions
Affiliate with a

en te

En fut
community to share Anticipate future success

qu ora
tly
and what can be

vis ure
process and insights

fre llab

io
n
Co

th
e
Harness
Uncertainty

s
at te
ion
Gu ice

pe ula
ch

Avoid disappointment through


id s
o

ex Reg
e

realistic expectations

ct
Make better choices and
decisions based on Experiment
information
nimbly

Discover innovative
ideas and solutions
Principle 5: 22

Seek guidance on talent, leadership, organization, and HR

ORGANIZATION GUIDANCE Career Guidance


23
Where organization guidance occurs? Four pathways
In any business, what do we have to do to be competitive?
FINANCIAL STRATEGIC TECHNOLOGY / OPERATIONS
Creating profit, managing risk, Business mix, where we play, how Digital agenda, operating
investor value we win processes infrastructure

ORGANIZATION
Talent, Leadership, Capability, HR

TALENT LEADERSHIP BRAND ORGANIZATION


Competence Individual Leaders Capability
Workforce Leadership Pipeline Workplace
People Process

HUMAN RESOURCES EFFECTIVENESS RBL.ai


Overall Goals and Agenda 24

IDEAS HR's Future Value Creation IMPACT

HR’s Fundamental Assumption: Value-Added Outside In

COVID-19 Crisis and HR Response

5 Principles in HR

Three HR Deliverables: Talent, Leadership, Organization

2 HR agendas: department and competencies


Dimensions of Opportunities of Coronavirus Crisis 25

• Personalize/customize
• Redefine Boundaries of work
• Navigate paradox
• Harness Uncertainty
• Provide guidance
• Talent (workforce,
competence, people)
Principles • Organization
in Progress (workplace, capability,
culture)
• Leadership at all
levels

HR
deliverables
Outcomes of HR 26

What value does HR create?

High
INDIVIDUAL
LEADERS
Talent
Leadership at all levels
Workforce
People
Individual
Ability ORGANIZATION
Culture
Workplace
Systems
Low
Low High
Organization Capability
Relative impact of individual vs. organization 27

Individual
(talent, competence, workforce,
people)

Organizational
(culture, capability, workplace,
process)
10
INDIVIDUAL
Talent, Workforce Talent Innovations 28

People
Competence
Bringing people into, moving them through, removing them from organization

A B C
Bringing people IN Moving people THROUGH Removing and retaining key
• WorkTask planning • Learning innovations people
• Types of employees • Performance conversations • Removing the right people
• Hire for culture • Career mobility • Retaining the best

Commitment D
How do we keep our employees engaged to give their best efforts?
Employee experience connected to customer and investor outcomes

Contribution E
How do we help employees find meaning at work?
Believe, become, belong
ORGANIZATION
Culture, Workplace Organization Logic 29
Systems

Rip currents swept


away a Florida
family. Then
beachgoers
formed a human
chain.

https://www.youtube.com/watch?v=jY
CWT3CU0RE
30
Evolution of organization form
Hierarchy/ Systems Capability Market-oriented
Bureaucracy Ecosystem (MOE)
(Roles, rules) (Alignment) (Identity) (Reinvent)
Principles of Market Oriented Ecosystem (MOE) 31
Leadership brand combines inside/outside and 32

LEADERS leader to leadership


Leadership at all levels
Leadership Brand 33

To address business
issues, the best companies
for building results based
leadership capability
integrate these six
elements of a leadership
brand
Dimensions of Opportunities of Coronavirus Crisis 34

• Personalize/customize
• Redefine Boundaries of work
• Navigate paradox
• Harness Uncertainty
• Provide guidance
• Talent (workforce,
competence, people)
Principles • Organization
in Progress (workplace, capability,
culture)
• Leadership at all
levels

• HR Department: HR HR
• 9 dimensions *
• 4 levels of maturity implications deliverables
• HR Competencies
• Looking back
• Looking ahead
Overall Goals and Agenda 35

IDEAS HR's Future Value Creation IMPACT

HR’s Fundamental Assumption: Value-Added Outside In

COVID-19 Crisis and HR Response

5 Principles in HR

Three HR Deliverables: Talent, Leadership, Organization

2 HR agendas: department and competencies


HR Department Evolution 36

HR criteria and Victory through Does HR create sustainable


assessment Organization organization capabilities?

HR Outside In Does HR deliver value to


customer and investor?

HR Value Does our HR department


Proposition deliver value?

HR Transformation Does our HR department


change to meet needs?

HR Design Do we have the right HR


organization?
HR Domains Overview 37

HR Domains Question
1: HR Reputation What is the HR department known for by stakeholders?

2: HR Customers Who are HR’s customers?

3: HR Purpose What is our HR mission? Why do we exist?

4: HR Design How is the HR department organized?


5: Organization
How does HR facilitate the right organization for the business?
capability
6: HR analytics How can HR access information to make better decisions?

7: HR practices How do we create and deploy HR practices?

8: HR Professionals What do HR professionals need to be, know, and do to be effective?

9: HR Relationships How does HR go about doing its work?


What are the HR competencies to succeed? 38

Strategic
enablers

Core
drivers

Foundational
enablers
Emerging … NEW … HR Competencies 39

Information HR helps an organization acquire, analyze, and act on information to


Asymmetry make better decisions

Separate In today’s business context of overwhelming information (noise), HR


signal/noise recognizes and focuses on what matters most (signal)

Offer HR goes beyond description to prescription to offer guidance on the


guidance “right” talent, leadership, organization and HR (see www.rbl.ai)

Anticipatory HR responds quickly to opportunities and challenges to create


solutions anticipatory scenarios that can be quickly implemented.

Social HR helps the organization citizenship issues around planet, people,


Citizenship political changes, philanthropy, and purpose/profit creation
Overall Goals and Agenda 40

IDEAS HR's Future Value Creation IMPACT

HR’s Fundamental Assumption: Value- Rethink assumptions for HR to deliver


Added Outside In value: HR is not about HR/think outside in
Recognize the “jolt” of the coronavirus
COVID-19 Crisis and HR Response
pandemic; and stages of crisis

5 Principles in HR Master and adapt 5 principles in progress

Three HR Deliverables: Talent, Deliver talent, leadership and


Leadership, Organization organization to all stakeholders
2 HR agendas: department and Assess and improve the HR department
competencies and HR professionals.
Final Message 41
42
Let’s stay connected!!!

For more information about The Please follow me on @dave_ulrich


RBL Institute or follow up, contact LinkedIn to view my
Joe Grochowski at joe@rbl.net regular posts with
Ginger Bitter at gbitter@rbl.net or insights and tips.
institute@rbl.net

Reminder, to download a pdf copy of these slides, go to:

www.rbl.net/webinars/hr-future-5-principles-3-outcomes-and-2-hr-actions

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