Staying Ahead of the Curve: Next Generation Human Resources

1
Staying Ahead of the Curve Next Generation
Human Resources

• Ronnie Toerien
• HCM Team Lead South Africa

2
Agenda

• Technology Shifts
• HR Transformation
• HR Transformation Competencies
• The Future of the Workforce
• Technology Foundation Web 2.0
• Measuring the Impact of Talent on Business
  Results

3
Technology Shifts
Web 1.0
Mainframe
Client/Server
Web 2.0

• PCs
• Internet
• Multi-media
• Ecosystem
• Self-service
• Object-based
• Predicting

• GUI
• Networks
• SQL
• Realtime
• Open
• Migrateable
• Adaptable
• Reporting

• Portals
• Web Services
• Multi-device
• Intelligent
• SaaS
• Components
• Data-mining/predictive

• Terminals
• Mainframes
• Flat files
• Cards/codes
• Proprietary
• Inflexible
• COBOL
• Data

4
Evolution in Technology
Todays Technology Environment Web 2.0
Yesterdays Technology Platform Web 1.0
versus
Environment
Hardwired / Monolithic
Web Services / SOA
SQL / Relational
Componentized / OO
Development
Customization / Coding
Composition / Orchestration
Implementation
Perpetual License
Pricing/Delivery
On Demand / SaaS
Integrated / Extended Network
Business Perspective
Standalone / Within 4 Walls
Business Effectiveness
Primary Value
Process Efficiency
Economic Focus
Return on Investment
Total Cost of Ownership
Source Beaman Macy, 2006
5
Evolution in the Business Environment
Todays Business Imperative Work 2.0
Yesterdays Business Agenda Work 1.0
versus
Automation
Back Office
Everyone
Business Events
Transactions
System of Record
Hierarchical
Collaborative
Organization
Episodic / Serial
Rate of Change
Constant / Simultaneous
Tacit Knowledge
Business Perspective
Skills Expertise
People Assets
Primary Value
Physical Assets
Economic Focus
Bottom Line
Top Line
Source Beaman Macy, 2006
6
Evolution in Human Resource Systems
Todays HCM Suite HCMS
Yesterdays HRIS Application HRIS
versus
Functionality
Payroll Benefits
Competencies Performance
At the Core
An Afterthought
Global
Regulatory Compliance
Comprehensive Framework
Governance
Reporting / Analytics
Business Output
Embedded Intelligence
Business Partner
Business Perspective
Gatekeeper
Quality / Performance
Primary Value
Efficiency / Costs
Economic Focus
Efficient Records Automation
Effective Talent Management
Source Beaman Macy, 2006
7
Evolution in the Human Resources
Todays Human Capital People
Yesterdays Human Resource Labour
versus
Organization
Departmentally Focused
Externally Focused
Brick and Mortar
Mobile / Virtual
Work Place
Consistent / Constant
Divergent / Sporadic
Work Style
Homogeneous
World View
Global, Multi-cultural
People as Asset
Business Perspective
Labor as Expense
Performance Accountability
Primary Value
Process Efficiency
Economic Focus
Company-for-Life
All-About-Me
Source Beaman Macy, 2006
8
Evolution for HCM

• Systems Agility
• Collaboration / Sharing
• Extended / Global
• Efficiency / Effectiveness

• Business Agility
• Engagement / Retention
• Workforce Intelligence
• Business Performance

9
Convergence of the .(dot) Shifts
Business 2.0
HCM 2.0
Web 2.0
Transformation 2.0
10
Agenda

• Technology Curves
• HR Transformation
• HR Transformation Competencies
• The Future of the Workforce
• Technology Foundation Web 2.0
• Measuring the Impact of Talent on Business
  Results

11
Reengineering Human Resources 1995
12
HR Transformation A Global Thing

• Over 75 of firms involved in HR transformation
  efforts
• US leads in completed projects
• Huge number of in process HR transformations
  elsewhere
• Only a few HR leaders have no plans

Source Mercer HR Consulting Global HR
Transformation Study, 2004
13
Its About Time (Spent)
After 10 years talking about being more
strategicnot enough progress!
Source Mercer HR Consulting Global HR
Transformation Study, 2004
14
What is HR Transformation 2.0
Mercer 2006 Transformation Study
15
Mercer 2006 Transformation Report
16
(No Transcript)
17
Agenda

• Technology Curves
• HR Transformation
• HR Transformation Competencies
• The Future of the Workforce
• Technology Foundation Web 2.0
• Measuring the Impact of Talent on Business
  Results

18
Transforming HR

• One size does not fit all
• Process flexibility and adaptability
• Innovate or be outsourced
• Business partner/business alignment
• Owner of corporate culture/ employee brand
• Competency/talent identification development
• Better technical skills
• Better analytical skills

19
Future skill requirements for HR professionals
Mercer 2006 report

• Interpersonal skills
• Team skills
• Interviewing and assessment
• Consultation/negotiation skills
• Leadership
• Change management
• Cultural change/transformation skills
• Business understanding
• Conflict management
• Coaching/facilitation
• Customer service
• HRIS data analysis and reporting

20
Agenda

• Technology Curves
• HR Transformation
• HR Transformation Competencies
• The Future of the Workforce
• Technology Foundation Web 2.0
• Measuring the Impact of Talent on Business
  Results

21
Future World of Work

• What will the workforce look like?
• Where will the talent come from?
• Workplaces or workspaces?
• Who owns the talent pool and the company culture?
• How do we prepare for these changes?

22
Workforce Demographics

• Reduced Workforce
• Workforce is getting older
• Increase of women in the workforce
• Rise in the contingent workforce
• 50 of workforce minority by 2050
• Global, mobile, virtual worker
• Decline in education level in developed countries
• Dominant language in next 50 years Chinese?

23
Each generation in the workplace comes with its
own sets of experiences and expectations that can
occasionally come in conflict with one another
Too much and Ill leave
Continuous expected
Required to keep me
The hard way
Classroom
Collaborative networked
Independent
Facilitated
Guarded
Top down
Collaborative
Hub spoke
Hierarchical
Independent
Horizontal
Collaborative
Team decided
Team included
Team informed
Seeks approval
Command control
Partner
Get out of the way
Coach
Once per year
No news is good news
On demand
Weekly/daily
Unsure
Uncomfortable
Unfathomable if not provided
Unable to work without it
Unwise
Sets me back
Part of my daily routine
Necessary
Source Lancaster, L.C. and Stillman, D. When
Generations Collide Who They Are. Why They
Clash. How to Solve the Generational Puzzle at
Work. Wheaton, IL. Harper Business, 2003.
24
Key HR Transformation Influencers
Employee Past
Employee Future

• Male
• Age 46
• Baby Boomer
• Married, 2 children
• Career Oriented, Loyal
• 10 year tenure
• Hierachically focused

• Female
• Age 32
• Gen X, Gen Y
• Work/life Balance
• Mobile
• 3 year tenure
• Team/Network focused

25
Key HR Transformation Influencers
Employer Past
Employer Future

• Local
• Office
• Stable
• Profitable
• Mechanized
• Hierarchical
• Caretaker
• Compliance

• Global
• Virtual
• Nimble
• Competitive
• Innovative
• Flat
• ROI
• Governance

26
Key HR Transformation Influencers
Past HR Practices
Future HR Practices

• Local
• Jobs/Positions
• Grades
• Skills
• Salary
• Tactical
• Data/Information
• Reporting

• Global
• Teams
• Broadbands
• Competencies
• Total Compensation
• Strategic
• Knowledge/Intelligence
• Predicting

27
Given the current demographic and employee
mobility challenges, retaining key employees will
become even more important
Factors influencing the retention of high
performing employees
Source Ulrich and Wayne Brockbank. The HR Value
Proposition. Harvard Business School Press.
Cambridge, 2005, p. 16
28
Agenda

• Technology Curves
• HR Transformation
• HR Transformation Competencies
• The Future of the Workforce
• Technology Foundation Web 2.0
• Measuring the Impact of Talent on Business
  Results

29
Common Web 2.0 Tools
30
Tomorrows Web 2.0 Work Environment
KIA Research
Q3 Budget Review Capital Expenses, KIA
Analysis Employee Reviews Acquisition
Analysis Stress Reduction Tips Q2 Competitive
Analysis
31
Evolving HR Practices
Traditional
Internet
Web 2.0
Engager
All Hands Meetings
Replayable Webcasts
Interactive blogs
Visibility
Classroom training
eLearning
Informal learning, tagging
Development
Team building offsites
D-lists, webinars
Social networking, workspaces
Community
Plaques
Email announcements
Recommendations, kudos, ratings
Recognition
Employee surveys
Online surveys
Wikis, chats, forums
Empowerment
Job Fairs, word of mouth
Online advertising, Email referrals
Blogging, RSS, Social networking
Attraction
32
Whos Adopting Web 2.0?
Executives Worldwide

• gt75 plan to maintain or increase their
  investments that encourage user collaboration,
  social networks, etc.
• 66 regret not boosting their capabilities to
  exploit new technologies. More executives said
  they should have acted faster.

The McKinsey Quarterly conducted this survey in
January 2007 and received responses from 2,847
executives worldwide, 44 hold C-level positions.
33
What Web 2.0 Technologies are Being Adopted?
Use or Planning to Use
The McKinsey Quarterly conducted this survey in
January 2007 and received responses from 2,847
executives worldwide, 44 hold C-level positions.
34
Agenda

• Technology Curves
• HR Transformation
• HR Transformation Competencies
• The Future of the Workforce
• Technology Foundation Web 2.0
• Measuring the Impact of Talent on Business
  Results

35
Why Measure?

• STOP I think.I feel
• START I knowI can prove
• SHIFT From Tangible to Intangible Asset
  Accounting

36
Measuring Human Capital
Asset
People as Means
People as Capital
Loss
Profit
People as Problems
People as Costs
Liability
Source Chapman Condy Company
37
HR measurement must move...

• FROM
• Unrealistic expectations for (false) precision
• Backward looking
• Discrete training events
• Reactive
• Lacks credibility
• Tactical (micro) orientation
• No theoretical foundation
• Attitude/opinion surveys
• Used for self-justification

• TO
• Appropriate standards of evidence
• Diagnostic and predictive
• Development management
• Proactive
• Enhances accountability
• Strategic (macro) orientation
• Hypothesis driven
• Results-focused HR analytics
• Used for continuous improvement

38
Changing the questions that we ask

• FROM
• How do we prove the worth of the HR function?

• TO
• How do we identify those HR programs/policies
  that would have the greatest positive impact on
  our key performance indicators?

39
Changing the questions that we ask

• FROM
• How do we show a ROI (cost savings) on our HR
  interventions?

• TO
• How do we link our HR interventions to key
  performance indicators?

40
Changing the questions that we ask

• FROM
• How do I justify/increase our training budget?

• TO
• What are the key differences in the training
  histories of our top and bottom performers?

41
Changing the questions that we ask

• FROM
• How do we maximize employee engagement?

• TO
• What are the critical engagement differentials
  between top and bottom performing business
  units/functions?

42
Metrics That Matter Analytic Taxonomy
Predictive Modeling
Correlated Analytics
Contextual Embedded Analytics
Metrics Delivery (Dashboards)
Information Distribution
43
Confluence of HR, Technology and Business
From the Industrial Age to the Knowledge Age
44
Questions?

• For more info. Contact
• Ronnie.toerien_at_oracle.com