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Allan Bukusi

“HUMAN RESOURCES TRANSFORMATION” THE ROLE OF HR IN CORPORATE TRANSFORMATION: TIPS FOR BAD AND UNCERTAIN TIMES. Allan Bukusi. Key References. Deloitte learning, 2006 Hewlett Packard, 2007 PwC, HfC Research, 2012 Values Based Leadership for Transformation, research 2013

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Allan Bukusi

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  1. “HUMAN RESOURCES TRANSFORMATION”THE ROLE OF HR IN CORPORATE TRANSFORMATION: TIPS FOR BAD AND UNCERTAIN TIMES Allan Bukusi

  2. Key References • Deloitte learning, 2006 • Hewlett Packard, 2007 • PwC, HfC Research, 2012 • Values Based Leadership for Transformation, research 2013 • Transformative CEOs in Kenya, NATION , 2013 • How to Lead corporate transformation, 2013

  3. PRESENTATION AIM • To update participants on the increasingly changing, evolving and transforming role of human resources leadership in corporate transformation and business survival & success.

  4. COVERAGE • What is corporate transformation? • Human resources transformation? • The role of HR in corporate transformation • Tips for good, bad & uncertain times.

  5. CORPORATE TRANSFORMATION • Corporate transformation is a process of organization renewal that facilitates the long term survival, sustainability and success of a business. • It is enabled by a paradigm shift in leadership thinking or quantum leap in business operations in response to market dynamics, environmental changes and future trends. -HOW TO LEAD CORPORATE TRANSFORMATION

  6. The qualities of a Transformingcorporate organization • Remains relevant in the market • Meets the need of the public (+customers) • Provides quality services and products • Trains & mentors future leaders • “Lives” transformative values (culture) - VALUES BASED LEADERSHIP FOR TRANSFORMATION

  7. DANGERS OF NOT-TRANSFORMING • Slide into “irrelevance”, non-responsive organization and business. • Frigid bureaucracy & wasteful production. • Under performing, under deployed staff. • Declining profitability & service delivery. • Structural inefficiency & ineffectiveness. -HOW TO LEAD CORPORATE TRANSFORMATION

  8. HUMAN RESOURCES TRANSFORMATION • HR Transformation initially focused on making HR operations more efficient and effective through process standardisation and technology. Deloitte , 2006

  9. THE NEXT GEN. HR TRANSFORMATION • Tightly linked to corporate strategy • Creates business value through HR services that address a company’s most pressing strategic challenges. • Anticipates critical workforce trends, • Shapes and executes business strategy, identifying and addressing people-related risks and regulations. • Enhancing workforce performance and productivity. • Offers new HR services to help a company improve and grow. Deloitte , 2006

  10. TRANSFORMING HUMAN RESOURCES • HR Challenges • Globalization • Evolving workforce • Evolving (IT) business • Virtual management (156,000 staff, x counties & cultures) • HR Road to transformation • Stuck to core values • focus on customer & product growth strategy • Cross-functional reporting (marketing officer report to HR manager). HR present on the work front. • Eliminating bureaucracy - HEWLETT PACKARD

  11. TRANSFORMING HUMAN RESOURCES • Review total reward strategy • Leadership team development • New operating model for HR • Operational efficiency • Head count (reduced to minimum cost) • Transformational not transactional staff contact (portal) • HR leading business transformation • Engaging HR people on the business front • “Transformational” training programs for all staff - HEWLETT PACKARD

  12. THE QUESTION; IS HRT DRIVING BUSINESS PERFORMANCE? • HR focuses on either “business” or “administration”. • HR has a strategic role In business development • Transformation fails because “transformation” efforts focus on Admin. rather than on skills development to execute vision. PwC, Hfc Global Research, 2012

  13. GLOBAL HR TRENDS • The global workforce is evolving. • New talent is required (tech savvy). • HR executives become substantive organization leaders in times of change. • HR Transformation assumes accountability for business success. • No “one-size-fits-all-strategy” it must be locally and globally specific. • HR is challenged to make transformation real to the business and not an “intervention” like a “systems upgrade”, hiring or retrenchment programs. PwC, Hfc Global Research, 2012

  14. DRIVING TRANSFORMATIVE ORGANIZATIONS IN KENYA • Six year rule; Sustained transformative leadership initiative. • Growth rule; average 50% annual growth metrics. • Employ transformative strategic plans. • Strong philosophy, values and customer focused culture. -TRANSFORMATIVE CEOS , ANALYSIS

  15. TRANSFORMATIVE CEO: Advice • Develop Business focus • Focus on service delivery • Develop (organization) systems • Develop leaders, leadership (teamwork) -TRANSFORMATIVE CEOs, ANALYSIS

  16. MAJOR LESSONS FOR HR • The way work is done & the workforce is evolving. • HR is expected provide NEW services and real time business solutions. • Expected to provide strategic initiative & lead change. • Ensure the organization remains relevant in its environment (keeping pace with the market). • “appropriate” core values sustain organization in evolving and dynamic circumstances. • Effective (rigid) HR practice can unwittingly cause corporate failure in the medium term.

  17. CORPORATE TRANSFORMATION SUSTAINABLE PURPOSE VALUES AUDIT RESEARCH & DEV. CUSTOMER FOCUS ETHICAL BUSINESS SYSTEMS TRANS. STRATEGIC PLAN TRAINING LEADERS -HOW TO LEAD CORPORATE TRANSFORMATION

  18. HUMAN RESOURCES TRANSFORMATION Align Co. Values Dev. Bus. Sup HR syst. Manage Services. HR Manage Product. Lead Change Train Talent -HOW TO LEAD CORPORATE TRANSFORMATION

  19. TIPS FOR “GOOD, BAD & UNCERTAIN TIMES” • Start with understanding the business, not “Retrenchment”, then decide short, medium-term action. • Align reward strategy to support pursuit of corporate goals. • Position organizations for (future) growth. • Align organization values to sustain business performance. • Develop “next” generation leadership (demographics) • From “Institutional” HR to Business HR • Incorporate global outlook in local solutions

  20. Sources • Onyango, Cultural gap & economic crisis in Africa, 2010 • Kiiru, et al, Successful fundraising,2011 • Kirimi & Minja, Transformational corporate leadership, 2012 • Bukusi, How to lead corporate transformation, 2013 • Burns MJ, Leadership, 1978 • Transformative CEOs with golden hands, Sunday nation 30th June 2013 • http://www.deloitte.com/view/en_cn/cn/42a8b3d77f1fb110VgnVCM100000ba42f00aRCRD.htm • http://www.pwc.com/us/en/people-management/publications/assets/pwc-hfs-hr-transform.pdf • http://www.hp.com/hpinfo/execteam/speeches/perezdealonso/07confboard.html • http://allanbukusiauthor.blogspot.com/2013/05/what-is-corporate-transformation.html

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