HR in the 21 st Century: The Transformation Continues

Row Henson HCM Fellow, Oracle Corporation

Convergence of the .(dot) Shifts

Business 2.0

HCM 2.0

Web 2.0

= Transformation 2.0

Evolution for HCM

New Technological Paradigm

Yesterday’s Technology Platform

Web 1.0

versus Today’s Technology Environment

Web 2.0

New Workplace Demands

Yesterday’s Business Agenda

Work 1.0

versus Today’s Business Imperative

Work 2.0

• • • •

Systems Agility Collaboration / Sharing Extended / Global Efficiency / Effectiveness

Yesterday’s HRIS Application

HRIS New Demands for HCM

versus Today’s HCM Suite

HCMS New Workforce Demands

Yesterday’s Human Resource

Labor

versus Today’s Human Capital

People New Workforce Demographics

• • • •

Business Agility Engagement / Retention Workforce Intelligence Business Performance

Agenda

• • • • • • • HR Transformation 1.0 1995 - 2004 HR Transformation 2.0 2004 – beyond HR Transformation Report Card HR Transformation Competencies The Future of the Workforce Technology Foundation – Web 2.0

Measuring the Impact of Talent on Business Results

Reengineering Human Resources 1995

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

It’s About Time (Spent)

After 10+ years talking about being more strategic…not enough progress!

Source: Mercer HR Consulting Global HR Transformation Study, 2004

Agenda

• • • • • • HR Transformation 1.0 1995 - 2004 • HR Transformation 2.0 1996 – beyond HR Transformation Report Card HR Transformation Competencies The Future of the Workforce Technology Foundation – Web 2.0

Measuring the impact of Talent on Business Results

What is HR Transformation 2.0

Mercer 2006 Transformation Study

Mercer 2006 Transformation Report

Agenda

• • • • • HR Transformation 1.0 1995 - 2004 HR Transformation 2.0 1996 – beyond • HR Transformation Report Card • HR Transformation Competencies The Future of the Workforce Technology Foundation – Web 2.0

Measuring the impact of Talent on Business Results

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 • Project management skills • Better analytical skills

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

Agenda

• • • • HR Transformation 1.0 1995 - 2004 HR Transformation 2.0 1996 – beyond • • HR Transformation Report Card HR Transformation Competencies • The Future World of Work Technology Foundation – Web 2.0

Measuring the impact of Talent on Business Results

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?

Workforce Demographics

• • • • • • • • Reduced Workforce Workforce is getting older 3 Generations working together Increase of women in the workforce Rise in the contingent workforce Global, mobile, virtual worker Decline in education level in developed countries Dominant language in next 50 years – Chinese?

Each generation in the workplace comes with its own sets of experiences and expectations that can occasionally come in conflict with one another Training Learning style Communication style Problem-solving Decision-making Leadership style Feedback Technology use Job changing Traditionalist The hard way Classroom Boomer Too much and I’ll leave Facilitated Top down Hierarchical Guarded Horizontal Seeks approval Command & control No news is good news Uncomfortable Team informed Get out of the way Once per year Unsure Unwise Sets me back Gen X Required to keep me Independent Hub & spoke Independent Team included Coach Weekly/daily Unable to work without it Necessary Gen Y Continuous & expected Collaborative & networked Collaborative Collaborative Team decided Partner On demand Unfathomable if not provided Part of my daily routine

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.

Agenda

• • • • HR Transformation 1.0 1995 - 2004 HR Transformation 2.0 1996 – beyond HR Transformation Report Card • HR Transformation Competencies • The Future of the Workforce • Technology Foundation – Web 2.0

Measuring the impact of Talent on Business Results

Common Web 2.0 Tools

Blogs Interactive discussion led by one individual Wikis Fully collaborative document/website creation Social Bookmarking Social Software RSS Feeds Chat Virtual Worlds Track interests and share with others Organize and connect with others with similar interests Subscribe to news and changes – syndication Private one-on-one or group interaction Meet and interact with others in a virtual world

Tomorrow’s Web 2.0 Work Environment

KIA Research

Q3 Budget Review Capital Expenses, KIA Analysis Employee Reviews Acquisition Analysis Stress Reduction Tips Q2 Competitive Analysis

Evolving HR Practices

Engager

Visibility

Traditional

All Hands Meetings

Internet

Replayable Webcasts Development Classroom training eLearning

Web 2.0

Interactive blogs Community Recognition Team building offsites Plaques D-lists, webinars Email announcements Empowerment Employee surveys Online surveys Informal learning, tagging Social networking, workspaces Recommendations, kudos, ratings Wikis, chats, forums Attraction Job Fairs, word of mouth Online advertising, Email referrals Blogging, RSS, Social networking

Who’s Adopting Web 2.0?

Executives Worldwide:



>75%

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.

What Web 2.0 Technologies are Being Adopted?

Blog Wiki Podcasts RSS Social Networking Collective Intelligence Web Services

32% 33% 35% 35% 39% 48%

Use or Planning to Use

80%

The McKinsey Quarterly conducted this survey in January 2007 and received responses from 2,847 executives worldwide, 44% hold C-level positions.

Agenda

• • • • HR Transformation 1.0 1995 - 2004 HR Transformation 2.0 1996 – beyond HR Transformation Report Card HR Transformation Competencies • • The Future of the Workforce Technology Foundation – Web 2.0

• Measuring the impact of Talent on Business Results

Measuring Human Capital

Asset

People as Means People as Capital

Loss

People as Problems People as Costs

Profit Liability

Source: Chapman Condy Company

Why Measure?

• STOP: “I think….I feel” • START: “I know…I can prove” • SHIFT: From Tangible to Intangible Asset Accounting

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?

Source : Laurie Bassie – McBassie & Company

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?

Source : Laurie Bassie – McBassie & Company

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?

Source : Laurie Bassie – McBassie & Company

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?

Source : Laurie Bassie – McBassie & Company

Metrics That Matter: Analytic Taxonomy

I M P A C T Predictive Modeling Correlated Analytics Contextual Embedded Analytics Metrics Delivery (Dashboards) Information Distribution COMPLEXITY

Confluence of HR, Technology and Business

CHRO / CPO Human Capital Strategy Global Manufacturing MRP VPHR Legal Protector Competencies Process Local Finance Host Systems Personal Dir Recordkeeping Skills Data Opportunity Creation / Effectiveness Efficiency ERP Automation Mainframe Packages Host Client/ Server Internet Technology Evolution

Questions?

For more info. Contact [email protected]

Enjoy the rest of the meeting!