HR’s New Role

Becoming a Strategic Business Partner

Presented by:Muhammad Usman Zafar

Why HR needs to transform? How Should HR Transform & Deliver Value Overview of HRBP Model Framework for linking HR Practices with Business Outcomes Best Practices in Talent Analytics Understanding Business Elements from HR’s Perspective Roadmap for implementing HRBP Model

Outline

Why HR Needs to Transform

The top four Key HR Concerns in Middle East1) Learning & Development: The need for a huge makeover (93%)

2) Reinvention of HR: Up-skilling HR is not an option anymore (91%)

3) Culture & Employee Engagement: Millennials don’t look for a career but a meaningful experience (90%)

4) Leadership Development: It’s time to prepare the next generation (at all levels) (87%)

Source: Deloitte’s 2015 Global Human Capital Trends report:

Case for HR Transformation

1. Value

2. Context 3. Stakeholders

4. Talent 5. Leadership 6. Org. Cap.

7. Structure 8. Practices 9. HR People 10. Analytics

What to deliver?

How?

What to understand?(PESTEL, Business,

Strategy) (Customer, Investors, Community)

Culture, Work Environment. Team Work (W>S)

(Talent Availability & Productivity(C x C x C)) (Brand,

Sustainability)

How to organize HR dept.?(Staffing, Performance,

Work structure, Reward)

(Competency of HR) (Measurement)

What to focus on? (value or activities) (Outside In)

Framework for Value Creation

HR brings to the table

Get HR to the table

9. HR People(Competency of HR)

8. Practices(Staffing, PMS,

Work structure, Rewards)

How Should HR Transform & Deliver Value

The Main Idea behind HRBP Model

Overview ofHRBP Model

Benefits to Other Functions• Provision of customized solutions to achieve business objectives.• Proactive & timely identification of workforce requirements• Provides a single point of contact.• Represents the interests of the client in HR• Designs client specific talent development programs.

Benefits to HR• Shift from “Service-Provider” mind-set to “Trusted Business Advisor”.• Substantial cost savings through the automation and outsourcing.• Transforms HR from cost centre to ‘added-value’ centre. • Leverages technology for enhanced accessibility and self-service• Freedom from the routine work.• Enhanced coordination with line management and builds credibility of HR

Focus = HR ServicesInside out

Focus = Business ResultsOutside In

How do we better analyze HR practices. How do we link HR to Business Results.

How do we explore new ways to operate better. How do we sense market trends that are not yet understood.

Reactive Pro-Active

Dave Ulrich Original Model Model in Practice

Roles Transitioned into Jobs

Consultant / Jr. HRBP

Strategic HRBP Consultant/Jr. HRBP Centre of Excellence Shared Services Centre

Adjusts corporate HR strategies to respond to changing business needs. Understand talent needs of the business. Provide guidance to HRBP.

Single point of contact for managers and responsible to provide advice and recommendations in matters related to Talent Management.

Consists of specialist teams to provide HR expertise in Talent Mgt. practices

Responsible for provision of transactional HR services and routine HR enquiries.

Corporate Sales Manager Area Sales Manager Product Development After Sales Services

Overview ofHRBP Model

CHRO / HR Leader

Analogy

Overview ofHRBP Model

Blueprint of HRBP Model

Roles of HR Business Partner

Overview ofHRBP Model

Strategic Partner/Advisor• Understanding the talent needs of the business.• Adjusting HR strategies to respond to changing

business needs.• Identifying talent issues before they impact

business.• Identifying new business strategies.• Assessing the HR implications of strategic

options.• Representing the business units talent interests

within the organization.

Operations Manager• Communicating org. changes to

employees.• Assessing employees attitudes.• Tracking trends in employee behavior• Designing HR programs to support org.

culture.• Communicating policies and procedures

to employees.• Keeping the line updated on HR

initiatives.

Employee Mediator• Managing competing personalities in the

organization.• Managing conflict between employees and

manager.• Responding to org. changes.• Resolving political problems in the execution

of business plan.

Emergency Responder• Quickly responding to the line manager

questions.• Quickly responding to complains.• Responding to manager needs.• Responding to employee needs.• Preparing to deal with emergency

situations.

Critical Competencies of HR Business Partner

Overview ofHRBP Model

Overview of HRBP Model

HRBP Effectiveness Impact

Barriers to Implementation Application Barriers: Most HRBPs don’t know how to apply competencies in their day-to-day

role. Partnership Barriers: Only 22% of line leaders actually ask the HRBP for strategic insights. Functional Barriers: Tensions between HR functional groups prevent coordination. Enterprise Barriers: Lack of effective coordination with cross-functional partners.

People-Profit ChainLinking HR Practices

with Business

Supportive Change Ready

Environment

Successful Business Strategy Execution

Satisfied & local

CustomerSupportive Change-ready environment

Highly Engaged

Workforce

Effective Management

of Talent

Talent

Leadership

Culture

Market

Strategy

Higher Market Performance

Linking HR Practices with Business

Talent Analytics Process

HR Data + Emp. Survey

Data

Industry Data + Financial Data + Commercial

Data + Customer Data

New Insights & Tools for Managers to make better decisions.

• Reactive reporting of personal & compliance measures (Focus on data accuracy)

Operational Reporting

• Proactive reporting for decision making. (Analysis of trends & benchmarks, Self service dash boards)

Advance Reporting

• Statistical Analysis to solve business problems, identification of issues and actionable solutions (Centralized staffing & integrated data)

Advance Analytics

• Development of predictive models, Scenario Planning.Predictive Analytics

Data Management,

Analytics, IT Consulting

Talent Analytics Maturity Model

Best Practices – Talent Analytics Google - “All people decisions at Google are based on data and analytics”

Linking HR Practices with Business

Analytics/Research Findings Action & ResultsManpower PlanningAnalytics team use “what if” analysis to continually improve their forecasts of upcoming people management problems and opportunities.

Action: Apply the scenarios for effective workforce planning inline with rapidly growing and changing industry trends.Result: More accurate forecast.

HiringAnalytics determined that Little value was added beyond four interviews.

Action: Reduce the number of interviews to Maximum of 4 per hire. Result: reduced the time to hire from 180 days to 45 days.

Leadership Analytics team identified the eight characteristics of great leaders whereby frequent personalized feedback ranked as the No. 1 key to being a successful leader.

Action: Let the employees rate managers twice a year on their performance on the eight factors.Result: Improved Perf. Related discussions between employees and managers.

Employee RetentionEmployee turnover analysis revealed a patter among departing employees and the analytics team came up with a formula to predict which employees are most likely to become a retention problem.

Action: Share information with management to act before it’s too late and personalize retention solutions.Result: Improved retention rate by 22%.

Workplace design drives collaboration Research findings revealed that increased innovation comes from a combination of three factors: discovery (i.e. learning), collaboration, and fun.

Action: Design workplaces to maximize learning, fun, and collaboration.Result: Improved creativity and innovation.

Vision, Mission & ValuesVision

To become partner of choice for the community.

MissionTo deliver insurance solutions.

ValuesPerformance, Customer Focus, Social

Responsibility

StakeholdersShareholders & Mgt.

• SH#1. ??%• SH#2: ??%

• Board of Directors• CEO

Customers• Total = ?? Million(appx.)• Individual customers: ? UAE

National ?? Expats• Group Customers ?

Regulators• HAAD, Ministry of Health • Ministry of Finance

HealthCare Providers• Hospitals• Pharmacies• Clinics

BusinessCompetition & Market• Market Share =?,• Main Competitor: ?

• Market Potential: Insurance Penetration Ratio?

Product & Services Portfolio• Insurance Plans

• After sales & Customer Services• Medical Claim services

Financials• Financial Outlook=?

• Income=?• Net Combine Ratio=?

External Business RealitiesEconomics

• Crisis of Oil Prices• Govt. Spending $1200/Person

Technology• Implementation of DRG System

• Use of Smart Phone • Integration of social media with

business services

Demographics• Multicultural diverse population

Organization StructureChief Executive Officer

CCO CIO CMO CPO CFO CIO

UnderstandingContext &

Stakeholders

Vision, Mission & Values• Does our HR practices, workplace set-up and culture support and facilitate Innovation? • Are our PMS, L&D and C&B systems integrated & effective at measuring and rewarding performance?

Stakeholders• How can we leverage skills and expertise from stakeholders for knowledge transfer ?• What are the key priorities of our CEO and how should we prioritize HR initiatives?• Are we meeting our employees’ expectations? How can we engage them to drive business growth?• How well our workforce planning mechanism catering for multilingual staff to serve our diverse

customers?• Does our workforce need any training or skill building to meet compliance requirements?

Business• Do we need to re-align our C&B practices in line with company’s current and future financials? • What is our customer satisfaction rate and what is needed to improve it from training, performance,

reward and workforce planning perspective?• How can we involve our customers in designing L&D and reward practices?• Does our workplace practices and employee attitudes allow swift customer support to our customers?

External Business Realities• How much the cuts in govt. subsidies and increase in govt. fees will impact Cost of Living? And how would it

impact our employees expectations for pay increments and bonuses?• Should we restructure our finance department for VAT implementation? • What are our clients in O&G sector doing to counter the negative effect of falling oil prices? And how

are we responding to that?

Organization StructureChief

Comm. OfficerChief

Infor. OfficerChief

Medical OfficerChief

Process OfficerChief

Finance OfficerChief

Innovation Officer• How can we build trust and develop strong working relationship with all the departments to share information?• How can we facilitate the line management in achieving business outcomes?

Delivering HR Insights

Pre-Requisite

HR services are integrated and delivered to meet basic requirements

Introducing HR Partnering Develop clear rationale for the proposed changes and seek top management support. Think through the likely barriers and prepare the ground for changes inside and outside HR Put the new structure in place and build the HR team Communicate the changes and build a working relationship with peer departments. Hit the ground running, deliver results and develop credibility.

Strengthening Partnering

Ensure that HRBP are involved in the business planning process. HRBP must apply analytical approach in linking productivity and people analytics. Align personal objectives of HRBP with assigned business managers’ objectives. Gather feedback on how well business partners are fulfilling their role and take appropriate action.

Tip: Focus on quick wins but don’t undertake too much too soon

Roadmap for Implementation

Thank You for Your Time

“HR needs to be more ambitious for the business and offer a vision of

how the business could be”.

THE END