hr’s paradox: adding value … without adding costs

HRs Paradox: Adding Value Without Adding CostsAmerican Public Power Association Business & Financial ConferenceSeptember 20, 2004

Why do companies,or their strategies, fail?

Our Findings

Lack of shared understanding and expectationsLack of clear ownership and accountabilityUnrealistic or overly ambitious expectationsOut of touch with the market and/or the businessInadequate attention to process and execution

F.O.C.U.S.

F FAD FIGHTINGO - OWNERSHIPC - CORE CAPABILITIESU - UNDERSTANDING BUSINESSS - STREAMLINE PROCESSES

FIGHT FADS&PRIORITIZEF

Fight Fads & Prioritize Fight the temptations of fad surfing Too many or none at all Focus on multiple stakeholders Add clarity and rigor Measure the right things

Fad Surfing

Fight Fads & Prioritize Fight the temptations of fad surfing Too many or none at all Focus on multiple stakeholders Add clarity and rigor Measure the right things

Finding The Priority Zone

Business HealthBusiness Priorities

Does Your Company Have

Noble Values

Agility Empowerment Fun Integrity Learning Teamwork

Value-less

F - FUNA - AGILITYT TEAMWORK

L - LEARNINGI - INTEGRITYE - EMPOWERMENT

Could These Be Yours?

Fight Fads & Prioritize Fight the temptations of fad surfing Too many or none at all Focus on multiple stakeholders Add clarity and rigor Measure the right things

CREATING VALUE FOR MULTIPLE STAKEHOLDERS

Fight Fads & Prioritize Fight the temptations of fad surfing Too many or none at all Focus on multiple stakeholders Add clarity and rigor Measure the right things

Add Clarity and Rigor Know the essence of your business strategy Identify the top 3 business imperatives Continually ask the key questions Is this really a priority and is it achievable? How will we do it? How will we know weve succeeded? How does it map to the strategy?

Fight Fads & Prioritize Fight the temptations of fad surfing Too many or none at all Focus on multiple stakeholders Add clarity and rigor Measure the right things

Metrics

Measure not what we can, but measure what matters!

HR Metrics

ALIGNOWNERSHIPFOR HRO

HR Owners The HR Team redefine HRs Job Line Managers complete people management Employees increasing self-service Service Providers increasing outsourcing

The HR Team

HR Owners The HR Team redefine HRs Job Line Managers complete people management Employees increasing self-service Service Providers increasing outsourcing

Line OwnershipIf a manager cant be trained to handle every kind of employee situation, then we have the wrong person in the job.

James Despain, Division VP and GM Caterpillar Tractor Division

CORE CAPABILITIES

C

Why Bother?

CAPABILITIES THAT DRIVE RESULTS

UNDERSTANDINGTHE BUSINESSU

Understanding the Business Relevant business/industry trends Key differentiators/market levers Knowing your firms value propositions Understanding financial statements

BUSINESS TRENDS ANALYSIS

Understanding the Business Relevant business/industry trends Key differentiators/market levers Knowing your firms value propositions Understanding financial statements

Connected to the Business

What keeps the CEO up at night?How would they handle a 10% budget cut?What would they say about HR?

STREAMLINEPROCESSESS

Three Main AreasPerceptions about HR (ETDBW)

HR Effectiveness and Efficiency

B.U. Effectiveness and Efficiency Work Processes load flow

Work Protocol procedures structures

R.R.A.M.M.P.O.

F.O.C.U.S.

FOCUS on the top 2-3 things that impact the business and HROWNERSHIP realign responsibility and management for HR processesCORE CAPABILITIES define HRs role around strategy executionUNDERSTAND THE BUSINESS drive and measure business resultsSTREAMLINE PROCESSES help improve overall efficiency and effectiveness

Bill Thomas, SPHRManaging Principal866-302-9099bill@centricperformance.comwww.centricperformance.com