STRATEGIC HR

FOR VALUE CREATION

WHAT IS VALUE
CREATION?
2
Now
Then Now
DUBAI
THE I NDUSTRY
COMMUNI CATI ONS
THEN & NOW
VALUE CREATION
An Organizational Context
Building a High Performance Organization
Creating VALUE for All Stakeholders
More classically, From an Organizational Perspective, Value Creation implies
Stakeholder VALUE
Shareholders Dividend Earning / Market Capitalisation
Customers Customer Delight / Value for Money
Partners Earnings from Association
Employees Livelihood / Quality of Work-life
Society Economic / Social Prosperity
Planet Environmental Sustainability
HIGH PERFORMANCE
ORGANIZATIONS
- The Characteristics
LEADERSHIP Thinks strategically
Formulates plans
Allocates resources
Builds engagement
Drives accountability
Delivers results
STRUCTURE &
DESIGN
Structure & Design closely linked to Strategy
Individual capabilities matched to Role
requirements
Proper delegation extended with accountability
PEOPLE Aligned
Empowered
Engaged
CULTURE Managed & aligned to achieve strategic objectives
CHANGE Managed by continually aligning, adapting,
communicating & cascading change
THE VALUE PARADIGM OF
HR
5
Build A
HIGH PERFORMANCE
ORGANIZATION
Enable Value
Delivery to All
Stakeholders or
the Organization
Develop
Organizational
Capabilities
Create
Competitive
Advantages
Strategic Partner
Enabler of Business
For this to happen, HR needs to
transform itself to a
TRANSFORMATION OF HR


THE HR EXECUTIVE OF
TODAY
7
Todays HR Executive - Competencies
Technical
Skills
Interpersonal,
Team and
Leadership
Personal
Attributes
Business
Acumen
HRS PARTNERSHIP WITH CORPORATE STRATEGY
BL HR RESPONSE
Rationalization of
Manpower
Strength down from 3385 (1993)
1429 (2007)

Alternate Models of
Manning
(Outsourced| Contractual|
Vocational Training)

Improving Productivity
as an HR Strategy
Focus on Quality &
Customer Orientation
Managing Constituents
(Internal Individual Employees &
Collectives
External Statutory Authorities,
Bureaucracy & Politicians )

Competency Exercises

e-HR
Workplace Organization
Sort / Set in Order / Shine /
Standardise / Sustain
Safety and Health
Initiatives
CSR Initiatives
COMPETETIVENESS IN BL THROUGH HR INITIATIVES
-Recap of the BL Business Scenario & HR Response- 1990s/Early 00s
ROAD AHEAD FOR HR
System Related
Driving down new
initiatives/ ideas
Developing compatible
standards
9
Structure Related
Varied Sectors of
Operations
Diverse Business Processes
Varying degree of
Complexity
Unique customer types
Market Related
Spiraling Mkt. Offerings
Complex/ High Value
Aspirations
Shortening Life Cycles
Individuals career
expectations
Practice Related
Different domains of
Talent requirement
How to develop
Unifying Culture
How to master varied
processes (on-roll &
off-roll strengths are
same for BL)
CHALLENGES
SOLUTIONS
STRATEGIC HR CHALLENGES
WORLD WIDE
BCG Survey on Creating People Advantage 2010

Top 10 Challenges 2010-15 *
1 Managing Talent
2 Creating & developing Leadership
3 Managing work-life balance
4 Becoming a Learning Organization
5 Enhancing Employee commitment
6 Effective Performance Management & Reward Systems
7 Transforming HR into a strategic business Partner
8 Managing Change & Cultural transformation
9 Managing CSR & Sustainability
10 Managing Diversity
HR can add
value by
successfully
responding to
strategic
Challenges
The next generation of HR transformation is
more tightly linked to corporate strategy and
to creating business value through HR
initiatives.

For HR to change the way it is perceived, it
must take the initiative and deliver results on
strategic business issues


STRATEGIC CHALLENGE
- RISK & COMPLIANCE
How HR Can Help Create Value

Global workforce security-
HR to playing a larger role to provide security and safety of the workforces.

Regulatory compliance-
HR to create a corporate culture that supports compliance.
HR responsible for all people-related compliance activities, including worker
training and formal certification programmes.

Governance-
HR to help establish an effective governance structure to help improve
decision-making processes, and align performance management with
company principles and objectives.
The Continuum of HR Value Creation:
Is Your HR Function Leading or Lagging?
Administrator and
functional/technical expert
Focused on delivering HR
services
Do not have the necessary
business and analytical
competencies to tackle
business issues
Strategic business partner
alongwith administrator and
functional/ technical specialist
Actively focussed on business
challenges viz talent management
and executive development
HR staff have skills, training and
experience to fully address
strategic business issues
HRs
role
Lagging Leadin
g
Service
Deliver
y
Few performance standards
for HR services
Employee experience is
secondary to HR efficiency
Each business unit has its
own standards for systems,
processes and practices
Performance standards in place
Employee experience drives
service delivery
Global standards for all systems,
processes and practices
Transactions and administration
are handled through self-service
and require little support from HR
Integration with technology
Whats Next?
HR to elevate its role and drive more value in the company:

Continue to improve HR operations
Continuously work towards transforming and restructuring the HR operations

Move up the HR talent
Relieving HR staff of their administrative burden doesnt mean they are ready to
contribute on a strategic level.
HR must objectively assess its current tactical capabilities against its future
strategic needs, filling the gaps through training and hiring.

Join the strategy discussion
HR must take the initiative and deliver results on strategic business issues, such as
mergers and acquisitions, new market development and talent management

HR That Means Business
Technology
Connectivity: always connected
Accessibility: no boundaries
Ambiguity: uncertain future

Industry/economic trends
Adaptability: the need to change
Intensity: market conditions
Convergence: overlap of industries

Demographics
Mobility: movement of talent globally
Diversity: globalization of work force
Spirituality: a need for trust and values

G
L
O
B
A
L
I
Z
A
T
I
O
N
NEW BUSINESS REALITIES
Strategic HRM

Strategy determines the direction in which the organization is going in relation to its
environment.
Strategic HRM is an approach to making decisions on the intentions and plans of the
organization concerning the employment relationship.

Concerns of strategic HRM

To address broad organizational issues relating to

a) Organizational effectiveness and performance
b) Changes in structure and culture
c) Matching resources to future requirements
d) Knowledge management and the management of change.
e) Meeting human capital requirements and the development of process capabilities,
that is, the ability to get things done effectively.


STRATEGIC HRM