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HR’s New Role Becoming a Strategic Business Partner: 

HR’s New Role Becoming a Strategic Business Partner November 2005 William Pasmore New York ODN National Conference Minneapolis

Overview: 

Overview Brief Description Of Mercer Delta Consulting (MDC) HR Transformation and the Evolution of the HR Business Partner Concept What It Takes to Be An Effective HR Business Partner Using Diagnosis to Transform Relationships and Opportunities Staying Focused on Issues that Matter to the Business Delivering Changes That Make a Real Difference Some Examples of Doing It Well Next Steps

Mercer Delta Clients: 

Mercer Delta Clients Executive leadership at the public-company/enterprise level Includes CEOs, COOs, Executive Teams, and Boards Relationships extend out into the organization $1 billion+ enterprises and smaller high-growth companies Recognizing the need for change Aware of own limitations Looking for assistance

Illustrative Client Companies: 

Illustrative Client Companies s

Creating Knowledge: 

Creating Knowledge

HR Transformation and the Evolution of the HR Business Partner Concept: 

HR Transformation and the Evolution of the HR Business Partner Concept

The Promise of HR Transformation: 

The Promise of HR Transformation Substantial cost savings through the automation and outsourcing of routine transactional work and the creation of shared services More complete, accurate, and useful information management through the creation of comprehensive, all-encompassing databases and HRIS systems Enhanced accessibility and self-service through 24/7 online and call center support for routine operations Uniform policy application across locations due to centralization of decision-making in shared systems Enhanced capabilities through centers of excellence for non-routine work Freed from the routine work, a new role for HR generalists as strategic business partners

From Personnel to Business Partner: 

From Personnel to Business Partner

Evolution of Organization Development: 

Evolution of Organization Development

Ulrich’s Human Resource Champions (1997): 

Ulrich’s Human Resource Champions (1997) Four Roles for HR Administrative Expert Employee Champion Change Agent Strategic Partner “When HR professionals work as strategic partners, they work with line managers to institute and manage a process that creates an organization to meet business requirements.”

Examples of Critical CapabilitiesFrom Ulrich’s Human Resource Champions: 

Examples of Critical Capabilities From Ulrich’s Human Resource Champions Align performance measures to strategic priorities Attract and retain high-caliber people Be the technology leader in the field Create a shared mindset Create capacity for change Demonstrate cultural flexibility Ensure trust between leaders and workers Form alliances with a variety of organizations Have a culturally diverse workforce Think and act globally Have dominant distribution channels Have committed employees Identify and develop the next generation of leaders Improve speed, cash flow, profitability, and productivity every year Innovate and learn more quickly than competitors Maintain good investor relations Manage financial management systems Take risks Work in a boundary-less way

What It Takes to Be an Effective HR Business Partner: 

What It Takes to Be an Effective HR Business Partner

Becoming a Strategic Business Partner: 

Becoming a Strategic Business Partner Knowledge requirements Using diagnosis to transform relationships and opportunities Staying focused on issues that matter to the business Delivering capabilities that make a real difference

Business Partner Knowledge Requirements Examples: 

Business Partner Knowledge Requirements Examples Strategic Operational Business HR Compensation/benefits Recruiting Hiring/firing Data reporting Performance assessment Succession planning Relocation Orientation and training Labor law Merger integration Policy/fair treatment Talent planning Talent development Performance management Executive succession Executive compensation HRIS Shared services Outsourcing/offshoring International law Acquisition assessment Managing diversity Quality Productivity/lean manufacturing Cost-reduction Process reengineering Supply chain management Work redesign Customer management Product development Change management Metrics/balanced scorecard Team effectiveness Strategic alignment Organization architecture Globalization Enterprise integration Acquisition planning Organizational learning Executive development Cultural integration Change leadership Capability creation Board relations

Using Diagnosis to Transform Relationships and Opportunities: 

Using Diagnosis to Transform Relationships and Opportunities

Diagnosis: 

Diagnosis Provides a powerful way of working with business leaders Involves a process and a set of principles Repeats whenever new opportunities emerge Helps transform relationships

The Diagnostic Process: 

The Diagnostic Process Implemented Streams - Examples Organization Architecture Culture Change Executive Team Performance Leadership Development

Data Collection and Analysis: 

Data Collection and Analysis Dialogues - centerpiece of data-collection strategy Input from business leaders on organizational issues and concerns Confidential, one-on-one discussions Structured process for interviewing, recording, analyzing, and reporting interviews with business leaders Results must feature powerful findings captured in the organization’s own words

Collaborative Organizational Diagnosis: 

Collaborative Organizational Diagnosis What do we see? What does it say? What does it mean? What do we do? HR Business Partner Business Leader

Core Principles: 

Core Principles Process Steps Core Principles BL Ownership Collaboration Iterative Learning Interpretive Diagnosis Change Leadership Skills Getting Started Data Collection Data Feedback Streams of Work Organizational Diagnosis

Six Dimensions of Relationships That Enable Change : 

Six Dimensions of Relationships That Enable Change Source: Carucci and Pasmore. Relationships that Enable Enterprise Change, Jossey Bass, 2002 Interpersonal Agility Courage Personal Investment Building Trust Collaboration Advocacy

Staying Focused on Issues That Matter to the Business : 

Staying Focused on Issues That Matter to the Business

Staying Focused on Business Issues: 

Staying Focused on Business Issues What are the issues that matter? What’s keeping business leaders up at night? What’s the “moose on the table” regarding the future? What drives the bottom line? Changing how you spend your time and attention Not getting pulled or pushed back into the old HR box

Delivering Changes That Make a Real Difference: 

Delivering Changes That Make a Real Difference

Congruence Model: 

Congruence Model

Two Key Challenges: 

Two Key Challenges Creating a new strategy that seizes market opportunities and makes full use of the organization’s competitive advantages Designing an organization that supports the full and effective execution of the new strategy

Some Examples of Doing it Well: 

Some Examples of Doing it Well

Strategic Business Partners Par Excellence: 

Strategic Business Partners Par Excellence Noel Tichy/Steve Kerr Richard Antoine

Business Partner Career Paths Examples: 

Business Partner Career Paths Examples Strategic Operational Business HR Compensation/benefits Recruiting Hiring/firing Data reporting Performance assessment Succession planning Relocation Orientation and training Labor law Merger integration Policy/fair treatment Talent planning Talent development Performance management Executive succession Executive compensation HRIS Shared services Outsourcing/offshoring International law Acquisition assessment Managing diversity Quality Productivity/lean manufacturing Cost reduction Process reengineering Supply chain management Work redesign Customer management Product development Change management Metrics/balanced scorecard Team effectiveness Strategic alignment Organization architecture Globalization Enterprise integration Acquisition planning Organizational learning Executive development Cultural integration Change leadership Capability creation Board relations Business Partner Strategic Business Partner HR Generalist HR Executive HR Specialist OE Professional OE Executive

Next Steps: 

Next Steps

Next Steps: What You Can Do: 

Next Steps: What You Can Do Make it personal Begin with conversations and diagnosis Build stronger relationships Stay focused Measure impact of changes on business results Commit to learning

We Could All Stand to Learn More About…: 

We Could All Stand to Learn More About… Developing extremely effective leaders Creating more flexible but still high-performing organizations Working globally, virtually, horizontally, and spontaneously Inventing and implementing new business models in old companies Changing cultures: making customers, values, and integrity real Organic growth Leveraging diversity for business results Strategic design China and India