“Managing HR Talent in

Turbulent Times”

David C. Forman, SPHR

Senior Vice President
Professional and Business
Development
Society for Human Resource
Management
HR: Leading People, Leading Organizations
© 2003 SHRM
 Definitions

“Turbulent”(adj.): movement or
agitation.

“Turbulence”(noun): confusion.

HR: Leading People, Leading Organizations

© 2003 SHRM
“The Future Ain’t What It
Used To Be !!!!

Source: Yogi Bera

HR: Leading People, Leading Organizations
© 2003 SHRM
 “The Future arrived when we
weren’t looking, so we’re still
dealing with issues, ideas and
programs that don’t fit the
world’s new realities.”
Source: Peter Drucker

HR: Leading People, Leading Organizations

© 2003 SHRM
What is the Future of the Human
Resources Profession ?

HR: Leading People, Leading Organizations

© 2003 SHRM
 Which of These is True?

“The next ten years will be

the HR decade.”
Professor David Ulrich
“Human Resource Champions”

“I am describing your human

resources
department, and have a modest
proposal: Why not blow it up?”
Thomas A. Stewart
“Fortune” Magazine

HR: Leading People, Leading Organizations

© 2003 SHRM
 General
Electric

HR: Leading People, Leading Organizations

© 2003 SHRM
 General Electric
Announcement to employees of the “Human Resource Leadership Program”

HRLP (Human Resources Leadership Program)

HRLP will prepare you for a dynamic role in the human dimension of GE. By helping
to develop our future leadership, your work will influence the direction of our company.

Program Summary
A 2-year entry-level program consisting of 3 challenging and in-depth 8-month
assignments
Broad business skills developed via hands-on experience in two HR assignments,
plus a third assignment in an area such as finance, quality or business development
Formal classroom training in advanced human resources techniques and business
concepts
Extensive contract with peers and senior business leaders from around the word
Expansion of your knowledge base, critical problem-solving skills and network of
valuable contacts

Candidate Criteria
Demonstrated academic excellence, business acumen and leadership ability
Self-confidence, strong analytic problem-solving skills and exceptional
communication skills
MBA/MA in Business or an HR-related discipline plus several years work experience
preferred
Geographic flexibility and global mindset; able to operate across cultures
 GE’s HR-Development Opportunities
• Employee-relations problem-solving assignment
• HR-generalist assignment
• Technical-specialization assignment
• Organization-effectiveness intervention experience
• Process-consulting experience
• Community-relationship experience
• Stretch job assignment
• Exposure to global issues
• Staff assignment
• Cross-functional experience
• Fix-it assignment
• Start-up assignment
• Large-scale change effort
• Organization-structuring assignment
• Corporate assignment
• HR functional-leadership assignment
• Business-team partnership experience
• Business-leaders support assignment
• Exposure to role models
• Extended professional network

HR: Leading People, Leading Organizations

© 2003 SHRM
• “This business game is all about
winning. The team that wins is the
team with the best players. Your job
is to field the best players.”

• Jack Welch, Former CEO General Electric

Corporation

HR: Leading People, Leading Organizations

© 2003 SHRM
 Which of These is True?

“The next ten years will be

the HR decade.”
Professor David Ulrich
“Human Resource Champions”

“I am describing your human

resources
department, and have a modest
proposal: Why not blow it up?”
Thomas A. Stewart
“Fortune” Magazine

HR: Leading People, Leading Organizations

© 2003 SHRM
 The Container Store

HR: Leading People, Leading Organizations

© 2003 SHRM
 The Container Store

The Container Store has NO HR Officer or

Department
!!!!!!!!!

HR: Leading People, Leading Organizations

© 2003 SHRM
 Which of These is True?

“The next ten years will be

the HR decade.”
Professor David Ulrich
“Human Resource Champions”

“I am describing your human

resources
department, and have a modest
proposal: Why not blow it up?”
Thomas A. Stewart
“Fortune” Magazine

HR: Leading People, Leading Organizations

© 2003 SHRM
The Essential Question???

How can HR professionals

produce significant value
and deliver results???

HR: Leading People, Leading Organizations

Become a Strategic
Business Partner

HR: Leading People, Leading Organizations

ON BEING A “STRATEGIC PARTNER”

Only 34% of HR 
Executive Are
 Viewed
 As “Strategic Partners”

SHRM/BSCol Survey, 2002

HR: Leading People, Leading Organizations

© 2003 SHRM
 Business Environment:

Workforce issues are at the top of the

agenda for CEOs

 Increasing recognition among business

leaders that people represent the only real
competitive advantage a company can
sustain

HR: Leading People, Leading Organizations

© 2003 SHRM
 Where is HR Going in These
Turbulent Times ?

• There can be an EXCITING future for the

profession.

• But human resource professionals have to

be prepared, willing and able to embrace
that future!

HR: Leading People, Leading Organizations

© 2003 SHRM
What Are The Current Business
Issues?

What are HR Professionals Saying?

What are CEO’s Saying?

HR: Leading People, Leading Organizations

© 2003 SHRM
 The Top Seven
People-Related HR Issues
1. Retaining Talent
2. Attracting Talent with Critical Skills
3. Improving Workplace Performance
4. Gaining Control of Health Care Costs
5. Using the Web Effectively for Information/Service
Delivery
6. Creating “People Measures” for a Balanced Scorecard

7. Building New Workforce Skills for the Next Round of

Growth

SOURCE: Towers Perrin interview of HR Professionals

HR: Leading People, Leading Organizations
© 2003 SHRM
 TOP CEO Issues:
Customer Loyalty/Retention

Engaging Employees in Company Vision/Values

Competing for talent

Shortage of Key Skills

Reducing Costs

Increasing Flexibility/Speed

Industry Consolidation
HR: Leading People, Leading Organizations
© 2003 SHRM
 TOP CEO Issues HR’s Work

Customer Loyalty/Retention Relationship: Employee/Brand

Engaging Employees in
Company Vision/Values

Competing for talent Talent Management

Shortage of Key Skills

Reducing Costs Reducing Costs

Increasing Flexibility/Speed Applying New Technology

Industry Consolidation Mergers & Acquisitions--

Reconfiguring Business
 HR Has Key Opportunities
Greatest opportunities for impact:
1. Strategic business partner: part of the business

2. Applying new technology

3. Achieving competitive advantage through

people
4. Mergers & Acquisition / business
reconfiguration
5. Reducing costs / HR metrics

HR: Leading People, Leading Organizations

© 2003 SHRM
 Key HR Transformations
▲ Developing a New vision and Theory of the
Case

▲ Shifting to Consulting and Client Service

Orientation

▲ Applying Re-Engineering and Work Re-Design

Principles to the HR Function and Its Roles

▲ Producing Operational Value

Source: SHRM Foundation

HR: Leading People, Leading Organizations

© 2003 SHRM
 HR Transition
Functional Specialist to Strategic Business Partner

Functional Specialist Business Partner

Nature of HR Responsive Proactive
programs and function Operational Strategic
Internal Societal

Nature of HR strategy
and policy HR department full HR and line
responsibility management share
responsibility
Organization of HR
function Employee advocate Business partner
Functional structure Flexible structure
Reporting to staff Reporting to line
Profile of HR
professionals Career in HR Rotation
Specialist Generalist
Lack of financial skills Financial expertise
Current focus Focus on future
Monolingual Multilingual
National perspective Global perspective
26
New Competencies for Strategic
Human Resource Leaders

HR: Leading People, Leading Organizations

 Framework For HR Competencies

Competencies Activities Business Results

HR: Leading People, Leading Organizations

HR Competency Domains
• Strategic Contribution

• Personal Credibility

• HR Delivery

• Business Knowledge

• HR Technology
Source: University of Michigan Business School

HR: Leading People, Leading Organizations

© 2003 SHRM
 HR Competency Domains
• Strategic Contribution 43%

• Personal Credibility 23%

• HR Delivery 18%

• Business Knowledge 11%

• HR Technology 5%

HR: Leading People, Leading Organizations

© 2003 SHRM
A New Role and a New Title for
HR Professionals

HR: Leading People, Leading Organizations

© 2003 SHRM
Sources of Competitive Advantage

Economic/ Strategic/
Financial Marketing
Capability Capability

Technological
Capability
“Organizational Capability”
David Ulrich and Dale Lake

HR: Leading People, Leading Organizations

© 2003 SHRM
Sources of Competitive Advantage

Economic/ Strategic/
Financial Marketing
Capability Capability
Organizational
Capability
(the New Role for HR)
Technological
Capability

“Organizational Capability”
David Ulrich and Dale Lake

HR: Leading People, Leading Organizations

© 2003 SHRM
 Organiztional Capability

• “ Organizational Capability is a business’s

ability to establish internal structures and
processes that influence its members to create
organization-specific competencies and thus
enable the business to adapt to changing
customer and strategic needs”.

D. Ulrich & D. Lake (1990). Organizational

Capability”. John Wiley

HR: Leading People, Leading Organizations

© 2003 SHRM
 The New HR Title

Chief Officer
(Director)
of
“Organizational Capability”

HR: Leading People, Leading Organizations

© 2003 SHRM
 The New HR Job Description
1. To create programs of recruitment,
development and retention of world class
talent and leaders to support the growth
of the organization.

HR: Leading People, Leading Organizations

© 2003 SHRM
 The New HR Job Description
1. To create programs of recruitment,
development and retention of world class
talent and leaders to support the growth
of the organization.
2. To champion the nurturing of a culture,
aligned with organizational strategy, to
bring about organizational commitment
to ethical practices, lifelong learning and a
sense of responsibility to all stakeholders.

HR: Leading People, Leading Organizations

© 2003 SHRM
 The New HR Job Description
1. To create programs of recruitment, development
and retention of world class talent and leaders to
support the growth of the organization.
2. To champion the nurturing of a culture, aligned
with organizational strategy, to bring about
organizational commitment to ethical practices,
lifelong learning and a sense of responsibility to
all stakeholders.
3. To create programs that will continuously raise
the competencies and capabilities of the members
of the organization to assure achievement of
organizational objectives.

HR: Leading People, Leading Organizations

© 2003 SHRM
 Wall Street Journal
Vice President, Human Resources
Global Fortune 500 Company of 30,000 employees, the leader in its

field, is seeking a Corporate Vice President of Human Resources with a

strong background and focus in organization effectiveness, development and

training. “Partnering” with corporate senior management and business sector

heads to bring forth a new business culture, the VP will establish HR as a

strategically focused internal consulting arm to the company. The successful

candidate will have a businessperson’s perspective and a demonstrated track

record in change management, re-engineering, leadership development and

training. Respond to: M-67, P.O. Box 17182, Philadelphia, PA 19105 EOE.

HR: Leading People, Leading Organizations

© 2003 SHRM
• “Change is the law of life, and
those who look only to the past or
present are certain to miss the
future.”

• Source: John F. Kennedy

HR: Leading People, Leading Organizations

© 2003 SHRM
 Thank You

HR: Leading People, Leading Organizations

© 2003 SHRM
 Questions Please
???????????????????

HR: Leading People, Leading Organizations

© 2003 SHRM
 Suggested Readings
Dave Ulrich. Human Resource Champions, Harvard Business School Press.

Jeffrey A. Mello. Strategic Human Resource Management, South-Western.

Dave Ulrich & Dale Lake. Organizational Capability. John Wiley and Sons,

Becker, Huselid and Ulrich. The HR Scorecard, Harvard Business School

Press
Jim Collins. Good to Great. HarperCollins Publishers, Inc.

HR: Leading People, Leading Organizations

© 2003 SHRM
 Old

Strategy New
Advice

Service Strategy

Advice

IT Service Out
Self- Source
Service Shared Services

Source: Prof. Ed Lawler, speaking at SHRM Foundation Thought Leader Conference, August, 2002
HR: Leading People, Leading Organizations
© 2003 SHRM
What HR Functions, If Any, Does Your Organization 
Outsource? (Please Select All That Apply.)

Topic Outsource Outsource Completely

completely partially in-house
401(k) Administration 33.2% 51.1% 15.7%
Employee Assistance/Counseling 64.2% 19.5% 16.3%
Retirement Planning Help 24.9% 49.4% 25.7%
Pension Administration 27.5% 45.9% 26.6%
Temporary Staffing 27.7% 44.0% 28.3%
Background Checks 40.8% 26.6% 32.5%
Training and Management Development 5.4% 51.1% 43.5%
Programs
Executive Development and Coaching 7.6% 46.6% 45.9%
Health Care Benefits Administration 13.7% 39.7% 46.6%
Employee benefit administration 7.4% 41.5% 51.1%
Note: Of respondents whose organizations offer that particular function.
SOURCE: SHRM Weekly Online Poll – July 2003

HR: Leading People, Leading Organizations

© 2003 SHRM
What HR Functions, If Any, Does Your Organization 
Outsource? (Please Select All That Apply.)
Topic Outsource Outsource Completely
completely partially in-house
Payroll 8.5% 40.1% 51.4%
Risk Management 8.5% 37.6% 53.9%
Executive Staffing 4.8% 39.3% 55.9%
Employee Relocation 18.5% 22.0% 59.5%
HRIS Selection, Training and 4.2% 35.7% 60.1%
Implementation
Recruitment 0.6% 31.3% 68.2%
Executive Compensation and Incentive 1.2% 16.1% 82.7%
Plans
Policy Writing 1.4% 13.2% 85.4%
Administration of Compensation and 1.5% 12.6% 85.9%
Incentive Plans
Wage and Salary Administration 2.3% 8.6% 89.1%
Note: Of respondents whose organizations offer that particular function.
SOURCE: SHRM Weekly Online Poll – July 2003

HR: Leading People, Leading Organizations

© 2003 SHRM
 Why Does Your Organization Outsource HR Functions?
(Please Select All That Apply.)

Choice Count Percent of Sample

Save Money/Reduce Operating Costs 102 26.0%
Allow Our HR Employees to Focus More on Strategy 89 22.6%

Control Legal Risk/Improve Compliance 85 21.6%

Improve Accuracy/Flexibility/Responsiveness 71 18.1%
Take Advantage of Technological Advances Without 70 17.8%
Capital Outlay
Lack Expertise In-House 69 17.6%
Offer Services We Otherwise Could Not 66 16.8%
Allow the Company to Focus on its Core Business 57 14.5%
Other 19 4.8%
We Do Not Currently Outsource Any HR Functions 186 47.3%

HR: Leading People, Leading Organizations

© 2003 SHRM