managing differences: the central challenge in hr global strategy
TRANSCRIPT
Alfredo AmoresTalent Management & Training International HR Executive
es.linkedin.com/in/alfredoamores - @AlfredoAmores
Managing Differences: The Central Challenge in
HR Global Strategy
Operational Excellence in Human Resources Summit, Barcelona 2015
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
Understanding how global we really are
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
The global reality check
25%
7%
10%
20%
20%
35%
3%
17%
1%
21%
15%
2%
2%
17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Bank deposits
Charity
Direct investment
Equity investment
Exports
Government debt
Inmigrants
Internet traffic
News media
Patents
Telephone calls
University students
Venture capital
internationalization levels
(*) World 3.0: Global Prosperity and How to Achieve it, Pankaj Ghemawat 2011
Differences matter
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
Cultural Administrative
Economic Geographic
CAGE distance framework (*)
(*) Prof. Pankaj Ghemawat - IESE
Language Etnicity Religion Work systems Tradition Values, social norms,
and dispositions
Colonial ties Trade agreements Currency Legal system Government policies Political hostility Visa and work permit
requirements Corruption
Physical distance Common land border Time zones Climate Landlockedness Transportation Communication
Per capita income Cost of labor Avaliability of human
resources Organizational
capabilities Economic size
C A
E GCulture differences matter in HR
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
Language
Diversity
Employee selection(Give more emphasis
to social class, or to education)
Evaluations(Focus on compliance,
or on performance)
Compensation(Wage differences between managers
and workers are larger or shorter)
Leadership(More authoritarian, or more participative)
Motivation(Based on that subordinates dislike work: more coercive,
or more reward-based)
Organizations(More hierarchical and regulated,
or more flat and flexible)
Change management(Tell subordinates what to do,
or explain the reasons for change and involve employees)Management by objectives
(Short-term oriented, or more longterm oriented; individual contributions, or group contribution)
Administrative differences matter in HRC A
E G
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
Labor union power
Protection of workers duringcollective disputes
Social security benefitsEmployment contracts
Diversity and inclusion
Labor relations
Personnel administrationTaxes
Payroll
Expatriates
Health & Safety
Collective agreements
Outsourcing regulation
Employee classification
Schedules
Holidays
Currency
Subsidies
Visa and work permit requirements
Geographic differences matter in HRC A
E G
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
Physical distance
Where to localize HR people
Remoteness
Time zones
Communications Transportation
Size of the country
Climate Diseases
Economic differences matter in HRC A
E G
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
Labor costs
Avaliability of qualified human resources
Standard of living
Per capita income
Organizational capabilities
HR budget
Suppliers of HR services
Access to internet
Market competitiveness(compensation)
Minimun wage Subsidies
Strategies for dealing with differences
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
What are our globalization options?
Adaptation (to the differences of
the countries)… to achieve local responsiveness
Aggregation (exploitation of
similarities)… to achieve greatereconomies of scale
Arbitrage (exploitation of
differences as opportunities)… to achieve absolute economies
Cultural: locate the corporate university facilities in BolognaAdministrative: locate global payroll department where tax and labor laws are more advantageousGeographic: move the workplace to other geography in order to “get rid of” staff that is no longer valid for the new challengesEconomic: locate global HR information system department to access highly skilled workers at lower cost
Cultural: translate elearning trainings to “International Spanish” for all Spanish speaking countriesAdministrative: manage expatriates globallyGeographic: locate training facilities where there can be more attendeesEconomic: subsidize the use of a common HR information systemin poorer countries
Cultural: translate elearning trainings to local languagesAdministrative: make payrolls locallyGeographic: provide labor advice locallyEconomic: adapt compensation policies according to local marketcompetitiveness
Case Study “Managing Global
Training Programs”
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
Managing Global Training Programs
Adaptation (to the
differences of the countries)… to achieve local responsiveness
Aggregation (exploitation
of similarities)… to achievegreater economies of scale
Arbitrage (exploitation of
differences as opportunities)… to achieve
absolute economies
Cultural Administrative
Economic Geographic
Translation to languages (adaptation or aggregation)
Cultural adaptation oraggregation
Work systems adaptation oraggregation
Change management Use prestigious providers User friendly tools Competences 80% common
Legal, regulatory and technical adaptation
Calendar adaptation Easy to implement training
solutions Build training contents in a
modular way Centralization or support in
the course management
Local or regional trainershomologated
Global training providers Training contents 80% global Schedules adaptation or
aggregation Locate training venues in
“close in travel time” places Elearning, webinars, and 2.0
communities ox expertise
Previuos leveling courses Move trainers Negotiate fees globally Subsidize the cost of the
training Provide training facilities Support in the course
organization Outsourcing to cheaper
countries the development of elearning contents, callcenters and otheradministrative tasks
How leading organizations are doing to "globally localice" the
HR function
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
A distributed form of HR is possible
(*) High-Impact HR in a Globally Local World,
Bersin by Deloitte 2013
Expert, specialized HR professionals
located CLOSE to the business
DISTRIBUTED HR program designand delivery, to
be tailoredlocally, by local HR people withcentral support
AGILE and ALIGNED HR
operations, with optimized HR
processes, and measurement of utilization and ajustment to local needs
Evidence based practice and DATA-DRIVEN
decision making
COMMUNITIES of HR expertise in order to work
collaborately to provide
standards and scalable high-
value processesCulture of
EMPOWERMENT in the HR team,
with authority to “call the shots”
BUSINESS-DRIVEN HR
leaders, thatunderstand thebusiness, hold
accountable, and measure impact & effectiveness
HR teams coordinated
through COMMON
HR platforms and standards, that can include local or cultural
needs
“Managing Differences: The Central Challenge in HR Global Strategy” Alfredo Amores Operational Excellence in Human Resources Summit, Barcelona 2015
Managing Differences: The Central Challenge in HR Global StrategyAlfredo Amores. Talent Management & Training International HR Executivees.linkedin.com/in/alfredoamores - @AlfredoAmores
Operational Excellence in Human Resources Summit, Barcelona 2015
Thanks for letting me share
“Knowledge is the only resource that increases with use” Probst, Raub & Romhardt, 1999