Copyright Susan R. Meisinger, Susan R. Meisinger, SPHR, JD Transforming the Function: Competencies Needed for HR s Expanding Strategic Role

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1 Susan R. Meisinger, SPHR, JD Transforming the Function: Competencies Needed for HR s Expanding Strategic Role

2 HR Competencies Your CEO asks 2 We re thinking about a new line of business - - will we have a problem finding the people? Why can t we outsource some of these HR functions? Won t it save us money and get us better service? What can we do to make our people more productive? As an HR professional, are you prepared to answer?

3 HR Competencies Executives get it people matter Research undertaken over the years by SHRM found that nearly universally, employees are regarded as a critical asset of the company. 3

4 HR Competencies Executives get it people matter Executives also said: HR is strong in depth of knowledge of HR and personal credibility. 4

5 HR Competencies 5 Executives get it people matter But they also said: HR is weak in competencies related to business and strategic leadership, partnership with other functions and customer orientation. HR doesn t convey an ability to get things done. HR isn t known for innovation or vision.

6 HR Competencies And what do CHROs Think? When a room of CHROs was recently asked How many of you are concerned about the need to up-skill your HR team? Most raised their hands! 6

7 Forces of Change Globalization Barriers are falling, competition comes from all corners New challenges for HR professionals responsible for global operations; 24/7 Multicultural work teams 7

8 Forces of Change Globalization China and India with double digit growth even during a recession Security issues Energy 8

9 Forces of Change Global Competition Product cycles are shorter Investors and boards are focusing on HR issues; executive compensation 9

10 Forces of Change Global economic turbulence Government debt/eu bailouts Constant push for more innovation In organizations with workforces that have been reduced and pummeled, just trying to survive In organizations where eliminating risk has been the push 10

11 Forces of Change Greater Attention to Governance Issues Investors and boards are focusing on HR issues; executive compensation 11

12 Forces of Change Image is global, and subject to attack and instant change Perceptions matter e.g. ethics Greater transparency Wiki leaks; social media Government regulation (U.S./foreign) 12 More regulations =greater complexity and cost of doing business

13 Forces of Change Technology Always connected Always changing No boundaries more choice Global work flows 13

14 Forces of Change The very nature of work and jobs Work being redefined into broader sets of more self-managed responsibilities and work requirements, highly interdependent tasks/activities and constantly changing roles. 14

15 Forces of Change Fixed-person/fixed-task/fixed-location/fixedschedule becoming outdated in a fluid and boundary-less 24-hour global business day Jobs becoming more complex and difficult cognitively, socially, perceptually 15

16 Why Do These Forces Matter? New ways of doing business require new ways of managing people. New ways of managing people require new skills and abilities from HR. 16

17 What Are Competencies? Competencies have some or all of these characteristics: A cluster of knowledge, skills, abilities, motivation, beliefs, values and interests; They relate to a major part of the job; They are associated with effective and/or superior performance; They are observable and measurable against well-accepted standards; They are linked to future strategic directions; and, They can be improved via training and development (Cooper 2000; Parry 1996; Shippmann et al. 2000) 17

18 Some Existing HR Competency Models: CIPD HR Profession Map IPMA HR Competency Model OPM HR Competency Model Schoonover HR Competency Model SHRM Senior Level HR Competency Model Ulrich/UMich/RBL Competency Model 18

19 HR Competencies Ulrich Competency Model Fifth and most recent study identifies the competencies needed for HR success. More than 10,000 HR professionals and non- HR executives globally. 19

20 Ulrich Competency Model IAE Universidad Austral - Argentina Irish Management Institute - Ireland Tsinghua University - China Australia Human Resource Institute - Australia National HRD Network - India 20

21 HR Competencies Ulrich s Earlier Model: Business Knowledge Personal Credibility HR Delivery Strategic Contribution HR Technology 21

22 22 HR Competencies Ulrich s Most Recent Model:

23 HR Competencies Credible Activist Delivers results with integrity Shares information effective written and oral communication skills Builds relationships of trust effective interpersonal skills 23 Credible Activist

24 Credible Activist Does HR with an attitude Offers a point of view Takes a position Challenges assumptions Credible Activist 24

25 HR Competencies Credible Activist HR professionals who are credible but not activists are admired, but do not have much impact. Those who are activists but not credible may have ideas but will not be listened to. - David Ulrich, The RBL Group 25 Credible Activist

26 HR Competencies Culture & Change Steward Enacts a culture that engages employees Translates culture into management practices Makes the whole greater than the sum of the parts Evolves a culture that aligns behavior with organizational goals 26 Culture & Change Steward

27 Culture & Change Steward Crafts a culture where knowledge is shared across organizational boundaries Personalizes the culture Employees find purpose and meaning in their work Manages work/life challenges 27 Culture & Change Steward

28 HR Competencies Culture & Change Steward HR s ability to define, create, manage, and change culture has become a unique source of competence; it s a separate domain, not part of strategic contribution. Culture & Change Steward 28

29 29 HR Competencies Talent Manager/Organization Designer Ensures today s and tomorrow s talent Develops talent; offering opportunity to grow Shapes the organization; help establish role clarity Fosters communication by designing processes and working with managers Talent Manager/ Organization Designer

30 30 Talent Manager/ Organization Designer HR Competencies Talent Manager/Organization Designer Designs non-financial and performance based rewards systems Designs measurements systems to distinguish between high and low performers. HR sees it as tactical Non-HR sees it differently Talent and Organization are different but need to be connected

31 HR Competencies Strategy Architect Sustains strategic agility by helping to establish the business strategy and translating the strategy into annual business initiatives Facilitates change by ensuring key leaders are in alignment and helping to create the need for change 31 Strategy Architect

32 HR Competencies Strategy Architect 32 Engages customers Facilitates dissemination of customer information Helps build the employer brand to customers and employees Non-HR views it as having a stronger affect on the business than HR does. Strategy Architect

33 HR Competencies Organizational Executor Implements workplace policies to deal with compliance issues; allowing for flexibility for employees Uses information technology to increase productivity and make better decisions. 33 Organizational Executor

34 Business Ally 34 Knows the external and business environments Understands the competition and the customer Is financially literate can read and understand the financial statements Understands the business technology, business processes, and e-commerce Business Ally

35 HR Competencies HR must be able to answer: 35 How does the company make money? What activities and processes are most critical for wealth creation as defined by customers and capital markets? Who in the firm performs these activities successfully? What are shareholders and owners requirements? HR continues to be more credible than they are business literate! Business Ally

36 SHRM Research: 36 Released in March 2010.

37 SHRM Research: 2009 poll of HR professionals in: United States, Canada, India Middle East and North Africa Asked about the most important competencies for senior HR leaders. 37

38 SHRM Research: Participants were presented with a list of 18 competencies for senior HR leaders, as identified through research and asked to identify the top five overall competencies for senior HR leaders. 38

39 SHRM Research: 39 Business knowledge: An understanding of the operations and processes of how business is conducted. Coaching/developing others: Helping others to reach their potential. Credibility: Being perceived by others as having the knowledge and experience to back up one s authority. Critical/analytical thinking: Seeking information and using that information to inform decisions and resolve problems. Cross-cultural intelligence: Knowledge of and sensitivity to differences among cultures. Effective communication: Being able to verbally or in writing convey messages in terms that make sense, and also to actively listen to others interpersonal communications. Ethical behavior: Perception of the moral appropriateness of individual and/or group conduct or behavior.

40 SHRM Research: 40 Flexibility/adaptability: The ability to adjust the approach as required by shifts within the organization and in the external business environment. Global intelligence/global mindset: An overarching way of thinking about the nature of doing business that views the world as a single market and includes an understanding of and sensitivity to cultural differences among workers in other countries and legal issues inherent in operating a business multinationally. HR knowledge: Understanding of tactical and strategic HR functions and processes. Integrity: Honesty and doing the right thing. Leading change: Charting the course for organization s stakeholders to navigate a shift in business processes, priorities, roles and expectations.

41 SHRM Research: 41 Organizational knowledge: Understanding the business issues that are specific to the organization and having empathy for and an awareness of the impact of human capital issues on the organization as a system. Persuasiveness/influencing others: The art of using interpersonal skills to convince others to share one s perspective or way of thinking. Results orientation/drive for performance: The ability to link processes and practices to positive outcomes and to demonstrate the value that HR brings to the organization. Shaping organizational culture: Creating the values by which an organization operates. Strategic thinking: Seeing the big picture, having a long-term line of sight and understanding the interconnectedness of decisions and activities within the various lines of the business. Technological savvy: Knowledge of the unique solutions and challenges that new technology will bring to the organization and understanding of how talent management will be affected by a technologically enhanced business environment.

42 SHRM Research: 42 There was substantial overlap among countries/regions in the overall top five competencies for senior HR leaders. Across all four countries/regions, the two most highly rated competencies were: Effective communication and Strategic thinking although the order varied by country/region.

43 SHRM Research: US Effective Communica tion Strategic Thinking HR Knowledge Integrity Ethical Behavior Canada Strategic Thinking Effective Communica tion Persuasion/ influencing others Leading Change Credibility India Strategic Thinking Effective Communica tion Business knowledge HR Knowledge Leading Change 43 Middle East/N. Africa Strategic Thinking Effective Communica tion HR Knowledge Leading Change Business knowledge

44 HR Competencies Steps to take Undergo a self-audit Make these areas a priority Continue your education 44 Demand these competencies in others

45 HR Competencies Thank-you! Questions? (Please note that these slides are copyrighted material ) 45