February 2017
HR 2025 REINVENTING PERFORMANCE, ORGANIZATIONS AND WORKFORCES PLACID JOVER
For discussion
Implications for HR
Three key trends
Helping the bizz to adapt
Technological Change - Digital - Big Data
4
2 Need to redefine HR Value and contribution
5
1
3 Citizenship - Female/male worlds - Millennials, gen S
Digital Transformation - Including Digital capabilities (define, buy/build/borrow)
Creating simpler, more agile and adaptive organizations - Digital leader - New forms of management
Adapting HR itself 5
Reviewing our “toolkits” - e.g. surveys, performance mgmt
6
New HR roles - Data powered HR
7
Evolving our impact
Underlying drivers of change - initial observations and starting point for discussion
1
Digital (incl. HR data and Analytics) – transforming the value HR can deliver if HR has the capabilities and systems to use data in new ways and enable smarter, data-driven decisions. A whole range of ways to transform the way HR works and supports the business
2
Increase focus on HR value creation – both in delivering the "basics" and on higher value added activities such as performance management and strategic workforce planning. Also speaks about the evolution of HR Org. models
3
Citizenship – shifts impacting the market place and that are forcing organizations to react and adapt . Impact is felt on business models but also in the need to rethink the workplace
HR Tech funding has grown phenomenally over the last 5 years – from $295 million in 2011 to nearly $2.5 billion in 2015
A crowded HR Tech eco-system
A data intensive eco-system is emerging, calling for – and enabling – advanced people analytics
Delivering greater value requires continued evolution of HR’s role as true business partner Most HR Functions are here Grounded in business strategy, anticipating needs and proactively generating people advantage
World class HR functions are here
STRATEGIC PARTNER TRANSFORMATIONAL
(High performer attrition, Workforce Cost, Revenue/FTE, Profit FTE)
CORE FUNCTIONAL (Engagement; Positions with Succession Plan; Quality of hire; Manager Quality)
TRANSACTIONAL
(Error rates; Employees served/HR FTE; HR Employees/1000 FTEs; Technology Cost/HR FTE)
Strategic Contribution
Digital and data revolution is raising the bar on what “strategic” / true business partner means
Where we are today A single HR model is dominant
Business Partnering / Centers of Expertise
Business Partner
Centre of Expertise
Client Groups
Shared Service Centre
Raise of nationalism, leading to economic and political dissatisfaction…and social and cultural dislocation Belonging
Identity Progress
18-35 (Millennials)
35 to 54
+55
Do we really understand what drives them?
Source: The Futures Company for Unilever
1 + 2 + 3 = HR will manifest in different ways
GOING AGAINST ‘ONE SIZE FITS ALL’
TECH DISRUPTION, PARTICULARLY THROUGH DATA
NEW APPROACHES TO PERFORMANCE MEASUREMENT
NEW RISKS FOR DIGITAL CONFIDENTIALITY
WIDENING ROLE OF HR IN MANAGING ‘EMPLOYEE EXPERIENCE’
FOCUS ON LEARNING AND DEVELOPMENT
FOCUS ON CULTURE AND ENGAGEMENT
INCREASING TASK AUTOMATION
EXTENDED AND ON-DEMAND WORKFORCE
Future HR
Leveraging Data & building Employee Experiences
Digital Transformation Adapting organizations to a digital, big data world: - Capabilities - Talent and Skills - Ways of Working “21st
Data Powered HR, enabling transparency & insights.
Century” leadership, increasing agility, collaboration, empowerment and experimentation.
Shift HR measurements, from tracking and reporting basics to looking after E2E employment experiences. Develop consistent, UI friendly and agile Data eco-systems.
“Help others”
Step change in basics, including how HR are organized Challenge our “HR Toolkit” (e.g. performance, surveys) while spending less time fixing transactional things. Getting sharper on what we outsource, what we build, what we borrow. A new type of Business Partner: someone that manages accountabilities, not just groups of people.
“Help ourselves”
“Digital” challenges businesses in multiple dimensions
Leadership Organisation
• Ownership of the digital agenda is often unclear or diffuse, as well as the digital vision itself (e.g. role of CEO, Board, CEO’s LT); digital capabilities lacking; eCommerce • New structure and org. models required to drive collaboration and experimentation (e.g. between business and IT; between Core and “Speedboats”) • A roadmap is required, that starts identifying corporate capabilities and “where to play” and consequently identifies role of Digital
Management processes
• How is the plan and efforts communicated? How to talk about digitizing the business without falling the trap of being perceived as performance improvement measures (restructuring)? • Where resource allocation takes place? Who is involved in trade-offs and conflict resolution
Reward / Performance
• Defining what behaviors matter and what it means to have a Digital mindset (e.g. tolerance for failure, rewarding mistakes, customer centricity) • What are the new performance standards and the new measurements (and integrated agendas) required to succeed
Talent
• Do we have the right people? What are we doing to acquire / develop new talent and skills
Rethink the Employee Experience Engagement Surveys?
Rethink the Employee Experience Feedback culture Peer to Peer Feedback = 14% 1. Proactive (unsolicited) Timely feedback Strength based 2. Solicited (self owned) No numerical rating Tags based on behaviours
3. Solicited (LM & employee) Classic version Behaviour based Mobile and easy to use
Linked to Learning Connecting Development with Learning
Rethink the Employee Experience What we learnt….
There is no Perfect Performance Management System
Performance Management does not drive Performance… People do
Ratings balancing to average drives internal competition
Performance Management drives Behaviours
Rethink the Employee Experience Where to focus your energy
Goal Setting
Leadership Behaviours
Line Leader Capability
Define new roles that will emerge in HR What are they? How do we ready ourselves?
Need an integrated road-map
‘If it is 5 things - these are the 5 things’
How to reimagine HR?
Fix today and activate tomorrow HR is not all about technology, but data & tech play a key role enabling the future Start with the end in mind, work backwards, and put consumer journeys at the center Have a roadmap, which may include not “so flashy” interventions There needs to be collective ownership, get teams and business to work for us
