does your HUMAN CAPITAL strategy listen to the VOICE OF THE CUSTOMER

 

HRM EXCELLENCE AUDIT : MOVING TO THE NEXT LEVEL

 

HRM  EXCELLENCE  AUDIT :

MOVING TO THE NEXT LEVEL

The triple objective  of an HRM EXCELLENCE AUDIT are to identify issues of potential liability ,to surface things that needing improvement  and to formulate strategies for improving operational efficiencies

The audit works best when the focus is on improving the HRD function in the organization… if not it is a toothless document. The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify what you are missing or need to improve. It is most useful when an Organization is ready to act on the findings, and to evolve its HRD function to a level where its full potential to support the organization’s mission and objectives can be realized.

 WHEN TO START AN AUDIT PROGRAM?

Generally speaking, an HR Audit can be done at anytime; however, Audits are most often conducted when the company is contemplating “change.”  These situations could be summed up as:

¨      The key stakeholders have a sense that certain things could be done more efficiently and for less money but aren’t sure where to start.

¨      There’s been a  series of dis-satisfaction against the HR function and it’s been recommended that they look across all functions of the business for other areas of liability.

¨      The organization is experiencing higher than normal turnover.

¨      Employee morale is low and employee relations issues begin to consume more of management’s time and energy.

¨      The organization has “outgrown” itself and needs to identify tools and resources that will help the organization to mature.

¨      To ensure that any/all new HR systems and programs that are put in place are integrated, seamless and compliments on another.

INTROSPECT ...BEFORE  YOU BEGIN:

Like any other function, the performance and contribution of HRD should be audited regularly. We recommend to our client that they first attempt ot answer thes 12 question before we have a preliminary round of discussion:e:

1.   What strategic contribution is being made by HRD  to the achievement of business/corporate objectives?

2.   To what extent are there well articulated and agreed HRD strategies which are aligned to the business strategy and which are integrated with one another?

3.   What role does HRD  currently play? Is this role appropriate in the context of the organization?

4.   To what extent has the responsibility for HRD  issues been devolved to the management?

5.   How well does HRD  reconcile the need for devolution with the need to ensure  that organizational, ethical and legal obligations and requirements are being mf consistently?

6.   What evidence exists that HRD  is being innovative in a practical and business way, based on an analysis of the business and people needs of the organizational and benchmarking?

7.   How well is HRD  performing by reference to quantitative measures such as added value per employee, absenteeism and attrition?

8.   How well is HRD  performing in terms of service delivery in fields such as INDUCTION, training, reward management, health and safety training  , the management of equal opportunity and diversity, advice on employee  engagement , the provision of employee assistance programmes and the maintenance and use of   HR  information systems?

9.   To what extent does HRD  express proper concern for ethical considerations, the interests of all stakeholders (employees as well as management), enhancing the quality of working life and achieving a satisfactory work/life balance?

10.   What ' contribution has HRD   made to the improvement of the employee relations climate?

11.   How well is HRD  regarded by its customers   management, line managers, employees generally, employee representatives, as measured by formal assessments or opinion surveys?

12.   Is the HRD  function well organized and properly staffed with qualified professionals who are actively concerned with continuous professional development?

We have found that some companies should start the turnaround in a piecemeal whilst others need a quantum change ...both approaches work according to the company "readiness" level of the corporate leadership; its top management shelf; its culture orientation. 

With best compliments

Dr Wilfred Monteiro

Mumbai- India

www.synergymanager.net

HCM 4.0 BUSINESS CENTRIC STRATEGY FROM PLANNING TO EXECUTION

 

CHANGING GEARS- FROM PLANNING TO EXECUTION

WHAT IS YOUR PRESCRIPTION FOR IMPLEMENTATION OF HCM4.0 FROM THEORY AND PLANNING PHASE TO EXECUTION PHASES

 

I will recommend CHROs and their mentors the CEO To simplify and adapt the principles of project management to the HCM4.0 startup or turnaround within the company.

While the science would be to use project management principles judiciously the art of execution is moving hearts and minds of people. An inbuilt factor in every  strategic planning venture  must  be  implementation- it concerns ensuring that the internal structures, practices and procedures enable the organization to achieve its objectives. This task can be achieve if the people factor is nurtured and  managed effectively to work in collaboration with the strategic objectives pursued.

Anticipating  the possible roadblock to the change management process would be the real breakthrough.Unfortunately there   is  a wrong notion : thinking is the privilege of  the higher echelons of the company; leaving  action  plans  to  the operational  level  employees with a fond hope that  they get done. This division  of  planners versus  doers  widens the divide.  Planning and execution have to be intertwined .Execution is a process, not an action or step. Execution is not the result of a single decision. It is a result of a series of integrated decisions emerging  over time. In practice  strategy execution may be termed as the  systematic process of rigorously analyzing  the business situation , questioning every assumption in the planning process  , tenaciously following through bottlenecks and critical path , communicating responsibility  and ensuring accountability . Strategy Execution can often mean a list of things NOT to do. Execution not only ensures efficient use of resources but also provides the feedback loop needed for the business to adjust to changes in the operational process.

 

  

Strategy  Execution, rather than Strategy  Formulation;

Is the ‘missing ingredient’ hindering  good strategy  being translated into value creation outcomes

 

HOW WOULD YOU RECOMMEND TO YOUR CLIENTS   A BLUEPRINT FOR THE “PROJECT MODE” TO MANAGING THE PROCESS OF EXECUTION HOLISTICALLY OF HCM MASTER-PLAN.

The many trials and error have taught  business leaders to  swear that strategy  execution, is the ‘missing ingredient’ to translating good strategy into value creation outcomes.

 

Grinding the point further authors Bossidy, Charan and Burck – in their  best seller book “Execution” (2002)    states “Execution-  is the discipline of getting things done … this is  what differentiated companies that succeeded from those that just muddled through or failed. The heart of execution lies in the three core processes: the people process, the strategy process, and the operations process.”

Prof Robert Kaplan and David Norton Harvard Business School , the developers of Balanced Scorecard concept say that ‘ …strategy without tactics is the surest route without failure… Companies where the  execution is not factored at the planning stage fail to realize the full benefits of a well crafted strategy.  They find the results aren’t anything close to what you’d hoped.  Prof Robert Kaplan and David Norton Harvard Business School , make the point that fewer than 10 per cent of all strategies are actually implemented.

 

 WHY IS HCM BEST SUITED TO BE THE HELMSMAN IN THE HCM PLANNING TO STRATEGY EXECUTION GAMUT

The foremost challenge  for the HCM 4.0   strategist  is creating a capability to dovetail the HCM master-plan with business strategy It is essential for HCM leaders to ensure that there is a clear linkage  between business strategy and HCM masterplan . In implementing HCM masterplan now needs to be fine-tune to this and ask: Are we allocating enough time, energy and money to those things critical to the organization? How best do we correlate the resources used to meta-goals like organization capability building and business performance?

 

 HCM is privileged to be a pivotal position; its work affects and influences every part of an organization, from the highest authorities in the boardroom  to workers on the shop floor; a fact conveniently ignore or discretely discounted by the critics of HCM . At every point it is  the people who make the difference.   In realtity  HCM leaders should  a bigger say because people execute strategy and this has to be factored in to make any plan meaningful.  This is the HCM-led differentiator for success of strategy execution.

 

HCM is in a unique position to communicate and explain to the  rank and file how  and why the business strategy is developed is just as important as what does  the strategy imply for individual and their teams. Likewise HCM professionals can glean inputs of how to tweak the HCM masterplan to the user needs; and even enrich it through the suggestions if they solicit them. The HCM strategy in turn  is re-conditioned by the  process of the implementing the firms business strategy  ….more like a chicken-and-egg syndrome.

HCM interventions must  concurrently  fit with  the company’s unique context and be enmeshed   with day-to-day activities at different organizational levels. This is the pathway to execute the masterplan. When the approach is defined there must be clarity on key roles, responsibilities, performance metrics. HCM  leaders need out-of-the-box  thinking to have tactical implementation plans that take into account the changes that must occur to align the business strategy with HCM master-plan.

FINAL WORD

Most companies it is found have a strategy summit which is across a weekend but do not follow up and follow through on a monthly or quarterly basis the actions and progress achieved The fact is execution of strategy involves more time and complexity than strategy formulation which is a brief event at the beginning of the year. 

 

The HCM strategy  is re-conditioned by the  process of the implementing the firms business strategy

 ….more like a chicken-and-egg syndrome 

HCM4.0 MODEL # bringing the voice of human capital into the boardroom

 

THE ROAD AHEAD – C-SUITE  MINDSET

HCM leaders have a long road of learning to become a full-fledged member of the C Suite by emphasizing  factors that CEOs care about the most. . The HCM chief has to stretch to become of  the leadership team or C Suite as it is now popularly called. It require not just to meet the perception barriers of HCM professed value but the ability and role of the HCM chief.  Forward looking CEOs should fundamentally remake HCM into a business unit that thinks like a profit center , functions independently  like a division , has its own way to track ROI to elevate itself into a full-fledged member of the C-Suite

HCM needs to start with a C-level mindset: think strategically, plan deliberately, and maintain a business outlook. The great HCM chiefs  need to be keen  observers  of the businesses environment facing their companies and study industry trends. HCM professional need to do some digging to find out your company’s top priorities, and align  initiatives centered around these priorities.  He must be focused on looking forward -anticipating change, understanding its impact on the people side of the business and managing this change It’s time for action and new ideas that can strengthen HCMs contributions to business success and clarify those contributions to others.

HCM 4.0 professional should be leading their businesses in understanding how to achieve optimal organization performance, developing a sense of where value is being created and lost in a business, and finding ways to increase value as core parts of the role. HCM chiefs  need to develop critical expertise about organization performance and capability and then bring that to life in new and creative ways for the businesses we work in. the message of HCM 4.0 must percolate down the HCM ranks since  top levels of HCM may  understand the business well, but the levels further down do not know how to contribute

  

HCM4.0 A BOARDROOM AGENDA

 HCM 4.0 has now a solid VALUE PROPOSITION for the C-Suite meetings and the Boardroom agenda!!! The effective HCM managers work precisely on  linking  the role performance and contribution  the  function against the overall organizational objectives. It is only then you can develop a STATEMENT OF INTENT that relates to the  fundamental people contribution to bottom line business performance Business centric HCM  involves looking at ways that human resources can make a direct impact on a company’s growth. HCM issues can be a difficult hurdle to cross for many companies 

The new organizational capabilities of HCM will deliver the results HCM really aspires for. These aspirations  shape  the agenda for HCM professionals who want to turn in their traditional administrative roles for ones centered  on creating strategic value. It aligns HCM  new-age performance criteria systems with corporate goals and strategies rather than traditional functional concerns. That calls for a well-defined outline of what organizations need, a reliable way of measuring ability and performance, and a clearer means of demonstrating that performance in metrics the rest of the organization cares about.

with best wishes

Dr Wilfred Monteiro

KEY DELIVERABLES of the HCM4.0 MODEL

 

HCM 4.0 - A NEW MANDATE TO MAKE HUMAN CAPITAL THE DIFFERENTIATING FACTOR

 

 

  

CAN HUMAN CAPITAL BECOME   STRATEGIC AND PROACTIVE?

 

INDUSTRY 4.0 has a new business paradigm – characterized by speed, innovation, short cycle time, quality and customer satisfaction. The torrential winds of change brought about by Industry 4.0 are both a challenge and opportunity for the HCM profession. Cynics may  speak of the decline  of the HCM function;  yet the champions of HCM  see a vibrant rejuvenated version to match the challenges of Industry 4.0.

HCM is an upstream of corporate strategy but aligning it to the corporate planning process is a delicate and complex process.

·         Drawing the terms of reference where the HCM function makes a strategic shift

·         Outlining a role for HCM in the gamut of corporate planning and execution

The people management function over the years has  seen four phases of deliverables:

Ø  OPERATIONALLY REACTIVE  (administrative efficiency the mentality of an office administrator )

Ø  OPERATIONALLY PROACTIVE (functional excellence to “toe the line” aiming at problem prevention ).

Ø  STRATEGIC HCM  (where systems and best practices are rolled  out with a  trial and error approach )

Ø  BUSINESS CENTRIC HCM (where the realities of the marketplace decide our agenda.)   In the fourth phase of maturity  the prime issues are:

·         Does HCM  respond proactively to the early warning signals of the business environment?  

·         How does our  execution excellence at its best to  benchmark with the  competitors or industry members’?

·          Does HCM add to the talent inventory organization capabilities to go ahead of the competition?

Michael Porter the Guru of Competitive   Strategy says “… Highly successful organizations are those that conceptualize how to differentiate themselves from competitors, not just replicate best practices…”The primary source of production in our economy has shifted from physical to intellectual capital. So technology in the form of  machinery and equipment is not the differentiating factor.  Ability to use it effectively is. 

One of the ways surely could be leveraging human capital  by the superior quality of people and work culture. HCM champions may  loudly claim that the quality of people is the cutting edge of the company’s competitive strategy. . Various studies show that up to 85 percent of a corporation’s value is based on intangible assets. Strategic assets in the new age economy are a set of  capabilities and resources intrinsic to an organization ; which  create a  lasting competitive advantage difficult to imitate HUMAN CAPITAL IS THE FOUNDATION OF ALL BUSINESS VALUE CREATION

 

Research reports say hi-performance companies  adopt  progressive people  management practices very quickly as different from low performance companies with archaic  people management  systems. Winning companies who embrace the HCM 4.0 Model devote considerably more resources to  HCM strategic agenda. Indeed, the most striking difference is the vision of leaders to make the system  comprehensive and not a patchwork quick-fix job.

DRAFTING AN ACTION PLAN 

HCM 4.0  is system embedded within the larger system of the firm’s strategy implementation. Hence managing  and measuring  the relationship between these two systems is the crux of performance excellence. This new paradigm can mark the beginning of a golden age of HCM.

The reality is organization at times thunderstruck by unprecedented challenges. Special HCM capabilities are needed to face the dire challenges of rapid growth; expansion across geographies ; turmoil by mergers, acquisitions, or joint ventures to integrate different organizations’ work systems. There is scarcity of talent in mission critical positions. These organization problems  are the very opportunity  for HCM to prove it worth!!!

Human capital management perceived two decades ago as a strategic initiative has now got to be ingrained in strategic  business processes. HCM 4.0  must be more engrossed with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need. The CHRO must consider those HCM attributes that are crucial to the implementation of your firm’s competitive strategy.

 

 

So HCM 4.0  is not merely the adoption of appropriate HR policies and practices but also the way in which these practices are deployed. Thus  HCM 4.0 secret formula  is….  work processes and capabilities which cannot be duplicated or copied by rival firms. The reality is the quality of people differentiates the winners from the losers in the business- technology can be copied but the processes of implementation is the real cutting edge of competitiveness.  The HCM 4.0 stellar role  is to combine the talents of employees like an orchestra conductor and be agile to use it to glean market opportunity  with maximum efficiency.

 

FINAL WORD

 

HCM as a function has the privilege of being one of the only functions to touch every part of an organization, from the highest authorities in the board to people on the shop floor.  Every change is achievable only through a proper planning followed by execution with respect to the organizational needs and objectives. The HCM 4.0 new role requires active involvement in all pre-planning work, which includes how they are being executed, the impact they will have on the business, what is the expected outcome and how can those successes be measured. 

ith best wishes

Dr Wilfred Monteiro

 

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HCM 4.0 A ROADMAP FROM CONCEPT TO ACTION

 

A business strategy is a future-oriented plan for creating and maximizing competitive advantages to accomplish the organization's mission. To successfully execute that strategy, each function within the business needs to align its departmental strategy with the overall business strategy. HCM also needs to align; though it  goes through the length and breath of the organization. HCM Leaders must start with the business model and then fine tune the HCM master plan to meet the overarching objectives  .  

The HCM model must be designed to follow the logic and structure of the business organization. Understanding real business challenges will provide insight into what value the HCM master-plan needs to deliver. When the HCM master-plan   connects to the business needs, does HCM 4.0 dovetail with the demands of the corporation in the midst of Industry 4.0.

When  HCM leaders work in tandem with challenges  of Industry 4.0; the rejuvenated function  takes upon an  holistic role of being an element of strategic alignment. Since every business process has a people factor- HCM can be the link pin in creating a sense of direction  and purpose and  ensuring  strategic  fit. It  means bringing out coordination between business strategy and HCM activities and other related programs.  Only then can it  have a value proposition for the CEO and board of directors. HCM  4.0 master plan must begin  within a planned and coherent framework that helps ensure that the various processes and initiative integrate to create  organizational value .The distinguishing factor of the HCM model 4.0 is more on DELIVERABLES (what the business requires to win) than DOABLES (what HCM activities occur)

STEP ONE -  TEAR UP THE OLD TEMPLATE 

The old template was structured to produce HCM products and processes (which keeps HCM department busy) rather than  results which the business manager want. The efficient working of HCM departments  for non targeted tasks; actually creating a big  feeling of  victory !!! Non-Strategic and administrative work drained away the time and energy from real strategic work  . Change and improvement within the old framework means  modify your ongoing schemes within  the old circle of thinking. A point to note the  past linear thinking  will lead the function only further down the dark tunnel. Moving from a traditional thinking means shedding the deadwood.

STEP TWO -  WRITE  A FRESH MANDATE  FOR THE NEW WAY….

 

HCM 4.0  to takeoff  must  first understand the need for a STRATEGIC FOCUS  by asking the prime question : WHY DOES HCM EXIST? If we were to draft a core purpose statement for the  profession what might that core purpose statement look like?  This will lead us to the core values guiding the HCM function and crystalize a core purpose. The simplest mission statement is HUMAN VALUE BOOSTING BUSINESS VALUE.

·         Business Centric HCM 4.0   is all about making organizations successful   through people. If the corporate objectives of growth competitiveness and long term survival are to be met;

·         HCM 4.0 is the talent of the organization as a strategic resource for the     achievement of sustained  competitive  advantage through people

 

STEP THREE -  ALIGNING HEARTS & MINDS / CREATING CHANGE READINESS

 

Aligned systems and process need engaged and committed  people. Only then does  strategy move from mere words on paper to a blueprint for success. Four  prime questions to address:

·      Do employees have the right mindset towards the vision values and mission of the organization?

·      Does the HCM master plan exude a positive impact for line managers to  enthuse them and win their involvement?

·          is there  integration of human resource considerations with the companies decision-making process and operations on a continuing basis?

·                 Do they and HCM Department in particular have  a well designed approach to bring about both the spontaneous involvement of both line managers and the rank-and-file people to make things happen.?

·         Do individual performance objectives reflect how each job holder  will personally support the vision

STEP FOUR - HAVE PRACTICAL, TACTICAL IMPLEMENTATION PLANS

Right from the start the emphasis should be placed on the implementation. Because strategy execution is the real test…  Most of the barriers to execution can be overcome if  they  are  accounted for during the formulation stage. Hence constantly stay focused on moving things along from situation assessment to approach development. This can be easily facilitated by liberally asking questions like:

·         Which HCM initiatives are really aligned with strategy implementation? What are the first three steps? Which ones should receive attention immediately, and which can wait?

·          Which  initiatives are truly linked to business results for line manager to feel enthused and involved ?

·         Can the Strategic Goal for HCM be written down in one page for this year to be split into monthly deadline statements?

·      Has HCM marshalled the resources needed to carry out the core purpose?

 

With best wishes

Dr Wilfred Monteiro