ceo/chro partnerships paving the way with commitment
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Presentation given at ASHHRA's Region 1 Conference by Exec. VP Jill SchwietersTRANSCRIPT
Presented by Jill Schwieters
June 29, 2009
CEO/CHRO PartnershipsPaving the Way with Commitment
Jill SchwietersExecutive Vice President ‐ Pinstripe Healthcare
As the leader of the Pinstripe Healthcare team, Jill works with healthcare organizations across the country to design, implement and manage talent acquisition and management solutions for their workforce planning needs. Over the past two years, Jill has worked to develop Pinstripe into a strategic and forward thinking partner in the healthcare space.
Having served as a member of the executive team for two major healthcare systems, Jill understands that human resource executives need to work in partnership with operational leaders to deliver the workforce solutions demanded by the competitive healthcare market. Her insider expertise along with her team provide real time and efficient solutions based on the unique needs of Healthcare Executives and their organizations.
A graduate of the University of Wisconsin with a degree in Industrial Psychology and a Masters in Management from Cardinal Stritch University, Jill is a frequent speaker at healthcare and human resources events and Jill recognized nationally as an expert in recruiting, talent management and utilization.
Welcome & Introduction
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Agenda
• What is a Great Partnership?
• Understanding the CHRO and CEO role
• CEO Priorities and Challenges
• Senior Leadership Alignment
• Building Strategic HR
• Partnering With the CEO
• Put Your CEO to Work for You
As the primary supporter of an organizations Human Capital, Human Resources Departments must manage the constant organizational challenges and evolve accordingly.
‐ Saratoga Institute
Human Resources Needs to Lead the Change
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Match these Partners
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A.
B.
C.
1.
2.
3.
What is a Great Partnership?
• Collaborative relationship where two parties work together to achieve mutually understood and agreed upon goals.
• Often individuals bring to the relationship:
– Unique and complimentary competencies
– Common vision and passion for the work
– An understanding of roles and accountabilities
– Trusting and open relationship5
In the past a leader was a boss. Today’s leaders must be partners with their people.. they no longer can lead solely based on
positional power.
Ken Blanchard
Partnership thoughts…
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Great Partnerships“Gates & Ballmer”
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Competence and Expectations
CHRO Framework –Knowing your Role as CHRO
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Deloitte, 2005
The CHRO Framework Focuses on the Primary Executive Roles of the CHRO:
• Workforce Strategist– Craft the business strategies that make sense in light of global labor
trends, available talent and next generation leadership
• Organizational and Performance Conductor– Navigate work style options ‐ diversity, telecommuting, job‐sharing,
virtual workers
– Act as change master, organization structure architect and innovation coach
• Service Delivery Owner– Juggle a mix of in‐house and external service providers to seamlessly
integrate and deliver employee and HR services as a cohesive whole
• Compliance and Governance Regulator– In an era rocked by scandal, CHRO’s work directly with the board of
directors to address management, compliance, ethics and integrity issues.
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Understanding the Role of the CEO
CEO
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What CEOs are thinking about…
Source: The Global Conference Board - HR Magazine – January 2008
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CEO’s Top 5 Challenges Overall
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2007
Excellence in execution 38.4%
Sustained and steady top‐line growth 36.8%
Consistent execution of strategy by top management 31.8%
Profit growth 28.4%
Finding qualified managerial talent 27.2%
Source: The Global Conference Board ‐ HR Magazine – January 2008
2006
Sustained and steady top‐line growth 37.5%
Profit growth 36.1%
Consistent execution of strategy by top management 33.4%
Speed, flexibility, adaptability to change 33.1%
Customer loyalty/retention 29.4%
CEO’s Top 5 Challenges Overall in this new Era we live in today…
Source: The Global Conference Board ‐2008 Financial Crisis Edition
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December 2008
Excellence in Execution 48%
Consistent execution of strategy by top management 47%
Speed, flexibility, adaptability to change 46.7%
Global Economic performance 44.6%
Financial risk including liquidity, volatility & credit risk 43.8%
Excellence in Execution
What CEOs are Thinking About…
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What CEOs are Thinking About…
Consistent Execution of Strategy by Top Management
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What CEOs are Thinking About…
Speed, Flexibility, Adaptability to change
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Global Economic Performance
What are CEOS thinking about…
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What CEOs are Thinking About…
Financial Risk, Volatility and Credit Risk
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• A total of 52 CEOs took the survey
• Survey was conducted in December of 2008
• All were CEOs of a hospital and/or a hospital system
• On average, each CEO is responsible for 4.5 hospitals
• On average, each CEO operates 734 staffed beds
• Their hospitals were located in 23 different states
Hospital & Healthcare System CEOs
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2009 Institute of Healthcare ExecutivesCEO Survey
How much, if any, have you cut your hospital/system 2009 capital budgets?
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While 29% of hospitals have initiated no capitalbudget cuts, 47% have cut capital budgets by >20%
Have you seen a decrease in volumes/procedures?
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On average, Hospitals have an experienced a 2.1% slippage in patient volume
What Cost Cutting Measures are you taking?
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Are CEOs and CHRO aligned on people challenges and priorities…?
Source: “Aligned at the Top” – Deloitte 2007
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Source: “Aligned at the Top” – Deloitte 2007
Senior Business Executives Describe the Overall State of Their Organizations Management of People
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Source: “Aligned at the Top” – Deloitte 2007
85% said that people are vital to every aspect of their company’s performance and 54% considered extremely vital
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Source: “Aligned at the Top” – Deloitte 2007
60% of business executives consider people issues “very significant” or “highly significant” to strategic decision making and expected to reach 90% in three to five years.
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Source: “Aligned at the Top” – Deloitte 2007
Only 25% of senior business executives feel HR plays a crucial role in the strategy formation and operational success
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Competence and Expectations
HR leaders need to be aware of the critical issues today and how they are impacting their business…
• The Economy– The unemployment rate has risen to 9.4%, and is expected to rise over 10%
– 14.5 Million unemployed
– Payrolls fell 345,000 in May
– Healthcare increased by 24,000 in May
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• Change in National Leadership– What policy changes have and will occur and how will in impact your organization?
– How will healthcare reform impact you?
HR leaders need to be aware of the critical issues today and how they are impacting their business…
• Workforce Shortages– 2010, 79 million Baby Boomers will start to leave the
workforce
– About 60 percent of the jobs that must be filled now are occupied by Baby Boomers that will need to be replaced
– Demand for Healthcare will increase as population ages
– Finding the “Best Talent” is harder than ever
– Competition for the “Right Talent”
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The Need for Human Resources to be Strategic and Part of the Solution is
Clear…
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Source: “Conclusions on Value-Added HR “- Brian Becker & Mark Huselid
The Need for Human Resources to be Strategic and Part of the Solution is Clear….
Five case studies conducted in firms known to be leaders in the management of people, drew three broad conclusions:
1. The foundation of a value–added HR function is a business strategy that relies on people as a source of competitive advantage and a management culture that embraces the belief;
2. A value‐added HR function will be characterized by operational excellence, a focus on client service for individual employees and managers, and delivery of these service at the lowest possible cost; and
3. A value‐added HR function requires HR managers that understand the human capital implications of business problems and can access or modify the HR system to solve those problems.
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• Outcomes– Improved Quality
– Reduced Costs
– Higher Efficiency
• Accomplishments– Implemented Shared Service
Centers
– Employee and Manager Self Service
– Integrated HR Management Systems
– Centers of Excellence
Source : Deloitte 2007
Since 1990s – Human Resource Accomplishments
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Since 1990s – Human Resources Did Not Accomplish
Redefine the department’s mission or role in the
organization
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How do I Transform HR to Strategic HR?
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Being the Strategic Advisor to the
CEO and Building a Partnership…
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Great Advisors
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CEO Readiness
• The CEO’s executive team includes a senior HR executive
• A Human Resources section appears in the organizations strategic plan
• The CEO forwards you recent articles related to workforce challenges, industry best practices and is in tune to the “people issues” of the business
• Human Resources is included in operational planning and executive meetings
• Expects other senior leaders to understand and own the talent implications of their business
• Understands and expects more from HR than administrative and tactical work
• Seeks advice on leadership issues and other talent challenges the organization is faced with
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HR Readiness
• HR Management Team Assessment
• HR practices, policies and systems
• HR Strategic Alignment
• HR Costs vs Organizational HR Costs
• New HR competencies
• Business & Financial Acumen
• Holistic approach to HR & Talent Management
• Executive Accountability
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How Do I Get the CEO’s Attention?
• Create the Compelling Case – There’s nothing like the numbers!
• HR Dashboards
• Business Case Analysis and Total ROI details
– Workforce Analysis Planning
– Vacancy & Turnover Metrics
– Employee Opinion Results
– Retention Metrics
– Recruitment Metrics
– Engagement Levels
• All HR work needs to be elevated to the same level as business unit investment analysis
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• Do your homework
• Get to know him/her
• Learn what their hot buttons are – good & bad
• Stay above the “fray”
• Use the CEO the right way
• Provide routine data drive updates related to HR business issues
• Offer recommendations and solutions to issues
It’s YOUR job to build the relationship, gain their trust and confidence and perform, once you do that the CEO will work for you…here’s how:
Put the CEO to Work for You!
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Breakout Questions
At your table discuss:
• What are you currently doing to get your CEO’s attention/support that works?
• What other things do you think you could be doing?
• Prioritize and report back to group
In Summary
• Partnerships = understanding your role and the role of the CEO
• Know what keeps CEO awake at night and what their priorities are
• Understanding the impacts on your organization
• Design a Strategic HR function to support the “steward” as well as “strategist” needs of the HR function
• Learn how to and when to use your CEO
• Offer solutions
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Thank you for your time and attention.
Jill Schwieters
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Pinstripe specializes in Healthcare Talent Management.
Pinstripe designs, builds, and manages high performing,
talent acquisition and management solutions that help
organizations win the war for talent and create
sustainable competitive advantage.
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Thank you.
Visit us at www.pinstripetalent.com,www.pinstripehealthcare.com or call 877‐797‐3379