“ Managing HR Talent in Turbulent Times”

1. “Managing HR Talent in Turbulent Times” David C. Forman, SPHR Senior Vice President Professional and Business Development Society for Human Resource Management

2. Definitions “Turbulent”(adj.): movement or agitation. “Turbulence”(noun): confusion.

3. “The Future Ain’t What It Used To Be !!!! Source: Yogi Bera

4. “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

5. What is the Future of the Human Resources Profession ?

6. 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

7. General Electric

8. 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

9. 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

10. “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

11. 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

12. The Container Store

13. The Container StoreThe Container Store has NO HR Officer or Department!!!!!!!!!

14. 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

15. The Essential Question??? How can HR professionals produce significant value and deliver results???

16. BecomeaStrategicBusiness Partner

17. ON BEING A “STRATEGIC PARTNER” Only 34% of HR Executive Are Viewed As “Strategic Partners” SHRM/BSCol Survey, 2002

18. Business Environment: Future of the HR Profession • 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

19. 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!

20. What Are The Current Business Issues? What are HR Professionals Saying? What are CEO’s Saying?

21. 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 • Building New Workforce Skills for the Next Round of Growth SOURCE: Towers Perrin interview of HR Professionals

22. 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

23. TOP CEO IssuesHR’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

24. 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

25. 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

26. Functional Specialist Business Partner Responsive Operational Internal HR department full responsibility Employee advocate Functional structure Reporting to staff Career in HR Specialist Lack of financial skills Current focus Monolingual National perspective Proactive Strategic Societal HR and line management share responsibility Business partner Flexible structure Reporting to line Rotation Generalist Financial expertise Focus on future Multilingual Global perspective HR TransitionFunctional Specialist to Strategic Business Partner Nature of HR programs and function Nature of HR strategy and policy Organization of HR function Profile of HR professionals 26

27. New Competencies for Strategic Human Resource Leaders

28. Framework For HR Competencies Business Results Competencies Activities

29. HR Competency Domains • Strategic Contribution • Personal Credibility • HR Delivery • Business Knowledge • HR Technology Source: University of Michigan Business School

30. HR Competency Domains • Strategic Contribution 43% • Personal Credibility 23% • HR Delivery 18% • Business Knowledge 11% • HR Technology 5%

31. A New Role and a New Title for HR Professionals

32. Strategic/ Marketing Capability Economic/ Financial Capability Technological Capability “Organizational Capability” David Ulrich and Dale Lake Sources of Competitive Advantage

33. Strategic/ Marketing Capability Economic/ Financial Capability Organizational Capability (the New Role for HR) Technological Capability Sources of Competitive Advantage “Organizational Capability” David Ulrich and Dale Lake

34. 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

35. The New HR TitleChief Officer(Director)of“Organizational Capability”

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

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

38. To create programs of recruitment, development and retention of world class talent and leaders to support the growth of the organization. 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. To create programs that will continuously raise the competencies and capabilities of the members of the organization to assure achievement of organizational objectives. The New HR Job Description

39. Wall Street JournalVice 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 businesssector 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.

40. “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

41. Thank You

42. Questions Please???????????????????

43. 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.

44. Old New Strategy Advice Strategy Service Advice Service Out Source Shared Services IT Self- Service Source: Prof. Ed Lawler, speaking at SHRM Foundation Thought Leader Conference, August, 2002

45. What HR Functions, If Any, Does Your Organization Outsource? (Please Select All That Apply.) Note: Of respondents whose organizations offer that particular function. SOURCE: SHRM Weekly Online Poll – July 2003

46. What HR Functions, If Any, Does Your Organization Outsource? (Please Select All That Apply.) Note: Of respondents whose organizations offer that particular function. SOURCE: SHRM Weekly Online Poll – July 2003

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