HR ”frontiers”: Snapshot idea

• HR is getting defensive / stuck due to external and internal reasons

• Instead of re-thinking its role on its own, it is suggested to explore and extend frontiers, jointly with other corporate functions for breakthrough innovation

• Knowledge exchange will essentially lead to innovation: not necessarily the ones we imply today. The journey is what we can manage / kick start, not the final outcome

Quick Inventory : examples of existing frontiers to

explore for HR with…

• Compliance: Governance-transparency, Diversity, CSR, ethics• Finance: VBM-Shareholder value creation, predictive modeling, risk

management, shareholder expectation mgt • IT- competitive intelligence, business intelligence, process automation• Logistics /Supply chain Mgt: service centers, process integration, KPIs• Legal: risk management, scenario planning, disaster recovery• Marketing: current and future employee segmentation, employer

branding, network research• PR: CSR, internal brand consistency, change communication• Research: active experimentation, best practice share, speed-to-market• Sales: key talent account management, client feedback mechanisms• Strategy: growth sourcing, M&A deals- DD and PMI, organizational

agility

Priorization matrix – tentative scores*depends highly on industry setting and company specifics

8874IT - IS

6745Suppy Chain Mgt & logistics

5657Marketing

3726Sales & AccountMgt.

4347Governence, legal& Compliance

2668Strategy &business mgt.

11652Real Estate &infrastructure

10534R&D

9973Public & Gov’trelations

7534Operations &production

1768Finance & Assetmgt.

Score / RankEase of implementation

Colaborativehistory

Potentialimpact

1 low -10 high

* Based on series of interviews with non HR corporate officers – but not representative sample

How it brings the shareholder valuea natural link to VBM

HR and Sales / Marketing

To work onTalent Account Mgt& Employer Brand

HR and IT / Supply Chain Mgt

To work onService Centers

& Processes

HR and Finance / Legal

To work onIntellectual Asset Mgt

Risk identificationand Mgt.

HR and Strategy / Board

To work onLeadership and

transparency

How to exploit?: suggested work method tips

• Promote rotation schemes or direct exchange: get to mutually understand the details of diverse best practices by functions

• Prioritize and create business case for the top ideas to implement – see priorization table and self test tool

• Create a mixed sponsorship council to review impact and progress

• Create mixed work teams to play with “cross fertilized”ideas – see shortlist

• Figure out incentives for cross functional collaboration• Get ONE done in 3-6 months to bring more appetite• Do not over-engineer> innovation is not by order

Tool snapshotSORE KEY: done 4 working 3 planned 2 aware 1 not aware 0 TOTAL SCORE:

HR COLLABORATIVE SELF ASSESMENT TOOL

Does HR collaborate with them to…

Finance & Asset

mgt.

Strategy & business

mgt.Sales & Account

Mgt.

Governence, legal &

ComplianceMarketing

Suppy Chain Mgt &

logistics Operations &

production

IT - IS

Public & Gov’t

relations

R&D

Real Estate &

infrastructure

1. ...acquire new customers

2....retain and grow current customers?

3.…leverage income generating assets?

4.……improve cusomer interaction efficiency?

5.

…improve efficiency of corporate / shared services?

6.

…improve product development and production?

7.

…improve logistics, distribution or service value?

8.…enhance asset efficiency?

9.

…improve management and governance efficiency?

10…improve execution capabilities?SCORE

Quick self test tool 1 HR on self(HR chances with other functions)

• 0-100 significant „Greenfield” opportunity for co-innovation

• 100-200 reasonable opportunities in few major domains

• 200- Very targeted, carefully selected or limited opportunities exist

Quick self test tool 2- others on HR(specific function on HR eligibility)

• 0-10 huge „Greenfield” opportunity for co-innovation

• 10-30 reasonable opportunities in few major domains

• 30- Very targeted, carefully selected or limited opportunities exist

Value Proposition /

Contract - example

H R in H R ou t F ina nce o L ice nse o r se ll in te llec tua l

cap ita l o S ell o r lease excess capacity

(p rod uctio n , d istribu tion , sa les, e tc .)

o D ivest non -p erfo rm ing and no n -stra te g ic bu sine ss un its

o Increase em p hasis o n genera ting eve nue fro m com p an y a sse ts (i.e . rea l esta te , IP , e tc .)

o Increase fo cus on b usiness insig h t and fo rw ard -loo kin g in fo rm ation

o Im p rove financ ia l risk m ana ge m e nt p rocesses

o Im p rove b usiness case d evelop m ent a nd ana lysis p rocesses

o Im p rove m anagem e nt o f transfer p ric ing

o U tilize tax -e ffec tive co rp o ra te struc tures fo r o w nersh ip /licensing o f in tangib le a sse ts (p a ten ts, trad e nam es, IP , e tc .)

o Im p rove m anagem e nt o f transfer p ric ing

o Increase fo cus on m anageria l, fo rw ard lo oking in fo rm atio n

o Increase fo cus on risk m ana ge m e nt and reg ula to ry com p lia nce

o Increase fo cus o n S takeho ld er R e la tion sh ip s

o Increase fo cus on s tra tegic asse ts (in te llec tua l p rop erty, e tc .)

o Increase em p hasis o n leveraging stra te g ic asse ts

o A lign M & A stra teg ies w ith business ob jec tives

o Increase fo cu s o n develo p ing and p ro tec ting in te llec tua l cap ita l

o M anage p ayro ll ta x im p ac ts o f b usiness in itia tives (M & A , conso lid a tio n , restruc turin g , re lo ca tion e tc .)

o Im p rove sk ills o f financ ia l m anage m ent sta ff

o Im p rove ince ntives a rou nd financia l m a nagem e nt e ffic ienc y

o U tilize tax -e ffec tive co rp o ra te struc tures fo r o w nersh ip /licen sing o f in ta ngib le a sse ts (pa ten ts, trad e na m es, IP , e tc .)

o Im p rove co m m unica tio n a round im pro ve m en t p rio rities

o Increase fo cu s o n s takeho lder R ela tio nsh ip s Im p rove u tiliza tion o f in te llec tua l p ro perty

o Increase e m p hasis on leveragin g stra teg ic asse ts

o D evelop and leverage in te llec tua l cap ita l (cop yrig h ts, p a ten ts, trad em arks, e tc .)

o Im p rove asse t deve lo p m ent sk ills o f m anage m ent and staff

o Im p rove ince ntives a rou nd asse t d evelop m e nt

Why? What’s in it for stakeholders?

• The business gets new sources of internal growth – not capital but innovation intensive

• The business re-uses intellectual capital already created in new contexts (asset efficiency)

• People get new, interesting and engaging assignments, giving room to creativity, and building bond

• HR prestige and business credibility improving thru business critical projects and collaborative efforts

• HR gets out of “stuck” status, particularly in crisis environment – best defense is rush ahead