Managing HR Talent in

Turbulent Times
David C. Forman, SPHR
Senior Vice President
Professional and Business Development
Society for Human Resource Management

HR: Leading People, Leading Organizations

2003SHRM

Definitions
Turbulent(adj.): movement or
agitation.
Turbulence(noun): confusion.

HR: Leading People, Leading Organizations

2003SHRM

The Future Aint What It

Used To Be !!!!

Source: Yogi Bera

HR: Leading People, Leading Organizations

2003SHRM

The Future arrived when we

werent looking, so were still
dealing with issues, ideas and
programs that dont fit the
worlds new realities.
Source: Peter Drucker

HR: Leading People, Leading Organizations

2003SHRM

What is the Future of the Human

Resources Profession ?

HR: Leading People, Leading Organizations

2003SHRM

Which of These is True?

The next ten years will be the HR decade.
Professor David Ulrich
Human Resource Champions

I am describing your human resources

department, and have a modest proposal:
Why not blow it up?
Thomas A. Stewart
Fortune Magazine

HR: Leading People, Leading Organizations

2003SHRM

General
Electric

HR: Leading People, Leading Organizations

2003SHRM

General Electric
Announcement to employees of the Human Resource Leadership Program
HRLP (Human Resources Leadership Program)
HRLP will prepare you for a dynamic role in the human dimension of GE. By helping
to develop our future leadership, your work will influence the direction of our company.
Program Summary
A 2-year entry-level program consisting of 3 challenging and in-depth 8-month
assignments
Broad business skills developed via hands-on experience in two HR assignments,
plus a third assignment in an area such as finance, quality or business development
Formal classroom training in advanced human resources techniques and business
concepts
Extensive contract with peers and senior business leaders from around the word
Expansion of your knowledge base, critical problem-solving skills and network of
valuable contacts
Candidate Criteria
Demonstrated academic excellence, business acumen and leadership ability
Self-confidence, strong analytic problem-solving skills and exceptional
communication skills
MBA/MA in Business or an HR-related discipline plus several years work experience
preferred
Geographic flexibility and global mindset; able to operate across cultures

GEs HR-Development Opportunities

Employee-relations problem-solving assignment

HR-generalist assignment
Technical-specialization assignment
Organization-effectiveness intervention experience
Process-consulting experience
Community-relationship experience
Stretch job assignment
Exposure to global issues
Staff assignment
Cross-functional experience
Fix-it assignment
Start-up assignment
Large-scale change effort
Organization-structuring assignment
Corporate assignment
HR functional-leadership assignment
Business-team partnership experience
Business-leaders support assignment
Exposure to role models
Extended professional network

HR: Leading People, Leading Organizations

2003SHRM

 This business game is all about

winning. The team that wins is the
team with the best players. Your job
is to field the best players.

Jack Welch, Former CEO General Electric

Corporation
HR: Leading People, Leading Organizations
2003SHRM

Which of These is True?

The next ten years will be the HR decade.
Professor David Ulrich
Human Resource Champions

I am describing your human resources

department, and have a modest proposal:
Why not blow it up?
Thomas A. Stewart
Fortune Magazine

HR: Leading People, Leading Organizations

2003SHRM

The Container Store

HR: Leading People, Leading Organizations

2003SHRM

The Container Store

The Container Store has NO HR Officer or
Department

!!!!!!!!!

HR: Leading People, Leading Organizations

2003SHRM

Which of These is True?

The next ten years will be the HR decade.
Professor David Ulrich
Human Resource Champions

I am describing your human resources

department, and have a modest proposal:
Why not blow it up?
Thomas A. Stewart
Fortune Magazine

HR: Leading People, Leading Organizations

2003SHRM

The Essential Question???

How can HR professionals
produce significant value
and deliver results???

HR: Leading People, Leading Organizations

Become a Strategic
Business Partner

HR: Leading People, Leading Organizations

ON BEING A STRATEGIC PARTNER

Only34%ofHR
ExecutiveAre
Viewed
AsStrategicPartners

SHRM/BSColSurvey,2002

HR: Leading People, Leading Organizations

2003SHRM

Business Environment:
issues are at the top of the
Workforceagenda
for CEOs
Increasing recognition among business

leaders that people represent the only real

competitive advantage a company can
sustain

HR: Leading People, Leading Organizations

2003SHRM

Where is HR Going in These

Turbulent Times ?
There can be an EXCITING future for the
profession.
But human resource professionals have to
be prepared, willing and able to embrace
that future!

HR: Leading People, Leading Organizations

2003SHRM

What Are The Current Business

Issues?
What are HR Professionals Saying?
What are CEOs Saying?

HR: Leading People, Leading Organizations

2003SHRM

The Top Seven

People-Related HR Issues
1.
2.
3.
4.
5.

Retaining Talent
Attracting Talent with Critical Skills
Improving Workplace Performance
Gaining Control of Health Care Costs
Using the Web Effectively for Information/Service
Delivery
6. Creating People Measures for a Balanced Scorecard
7. Building New Workforce Skills for the Next Round of
Growth
SOURCE: Towers Perrin interview of HR Professionals
HR: Leading People, Leading Organizations
2003SHRM

TOP CEO Issues:

Customer Loyalty/Retention
Engaging Employees in Company Vision/Values
Competing for talent
Shortage of Key Skills
Reducing Costs
Increasing Flexibility/Speed
Industry Consolidation
HR: Leading People, Leading Organizations
2003SHRM

TOP CEO Issues

Customer Loyalty/Retention

HRs Work
Relationship: Employee/Brand

Engaging Employees in
Company Vision/Values
Competing for talent

Talent Management

Shortage of Key Skills

Reducing Costs

Reducing Costs

Increasing Flexibility/Speed

Applying New Technology

Industry Consolidation

Mergers & Acquisitions-Reconfiguring Business

HR Has Key Opportunities

Greatest opportunities for impact:
1. Strategic business partner: part of the business
2. Applying new technology
3. Achieving competitive advantage through people
4. Mergers & Acquisition / business reconfiguration
5. Reducing costs / HR metrics
HR: Leading People, Leading Organizations
2003SHRM

Key HR Transformations

Developing a New vision and Theory of the

Case

Shifting to Consulting and Client Service

Orientation

Applying Re-Engineering and Work Re-Design

Principles to the HR Function and Its Roles

Producing Operational Value

Source: SHRM Foundation

HR: Leading People, Leading Organizations

2003SHRM

HR Transition
Functional Specialist to Strategic Business Partner
Nature of HR
programs and function
Nature of HR strategy
and policy
Organization of HR
function
Profile of HR
professionals

26

Functional Specialist

Business Partner

Responsive
Operational
Internal

Proactive
Strategic
Societal

HR department full
responsibility

HR and line
management share
responsibility

Employee advocate
Functional structure
Reporting to staff

Business partner
Flexible structure
Reporting to line

Career in HR
Specialist
Lack of financial skills
Current focus
Monolingual
National perspective

Rotation
Generalist
Financial expertise
Focus on future
Multilingual
Global perspective

New Competencies for Strategic

Human Resource Leaders

HR: Leading People, Leading Organizations

Framework For HR Competencies

Competencies

Activities

Business Results

HR: Leading People, Leading Organizations

HR Competency Domains
Strategic Contribution
Personal Credibility
HR Delivery
Business Knowledge
HR Technology
Source: University of Michigan Business School

HR: Leading People, Leading Organizations

2003SHRM

HR Competency Domains
Strategic Contribution

43%

Personal Credibility 23%

HR Delivery

18%

Business Knowledge 11%

HR Technology 5%
HR: Leading People, Leading Organizations
2003SHRM

A New Role and a New Title for

HR Professionals

HR: Leading People, Leading Organizations

2003SHRM

Sources of Competitive Advantage

Economic/
Financial
Capability

Strategic/
Marketing
Capability

Technological
Capability
Organizational Capability
David Ulrich and Dale Lake

HR: Leading People, Leading Organizations

2003SHRM

Sources of Competitive Advantage

Economic/
Financial
Capability

Strategic/
Marketing
Capability
Organizational
Capability
(the New Role for HR)

Technological
Capability

Organizational Capability
David Ulrich and Dale Lake

HR: Leading People, Leading Organizations

2003SHRM

Organiztional Capability
Organizational Capability is a businesss
ability to establish internal structures and
processes that influence its members to create
organization-specific competencies and thus
enable the business to adapt to changing
customer and strategic needs.
D. Ulrich & D. Lake (1990). Organizational
Capability. John Wiley

HR: Leading People, Leading Organizations

2003SHRM

The New HR Title

Chief Officer
(Director)
of
Organizational Capability

HR: Leading People, Leading Organizations

2003SHRM

The New HR Job Description

1. To create programs of recruitment,
development and retention of world class
talent and leaders to support the growth
of the organization.

HR: Leading People, Leading Organizations

2003SHRM

The New HR Job Description

1. To create programs of recruitment,
development and retention of world class
talent and leaders to support the growth
of the organization.
2. To champion the nurturing of a culture,
aligned with organizational strategy, to
bring about organizational commitment
to ethical practices, lifelong learning and a
sense of responsibility to all stakeholders.

HR: Leading People, Leading Organizations

2003SHRM

The New HR Job Description

1.

2.

3.

To create programs of recruitment, development

and retention of world class talent and leaders to
support the growth of the organization.
To champion the nurturing of a culture, aligned
with organizational strategy, to bring about
organizational commitment to ethical practices,
lifelong learning and a sense of responsibility to
all stakeholders.
To create programs that will continuously raise
the competencies and capabilities of the members
of the organization to assure achievement of
organizational objectives.
HR: Leading People, Leading Organizations
2003SHRM

Wall Street Journal

Vice President, Human Resources
Global Fortune 500 Company of 30,000 employees, the leader in its
field, is seeking a Corporate Vice President of Human Resources with a
strong background and focus in organization effectiveness, development and
training. Partnering with corporate senior management and business

sector

heads to bring forth a new business culture, the VP will establish

HR as a

strategically focused internal consulting arm to the company. The

successful

candidate will have a businesspersons perspective and a

record in change management, re-engineering,

demonstrated track

leadership development and

training. Respond to: M-67, P.O. Box 17182, Philadelphia, PA 19105 EOE.

HR: Leading People, Leading Organizations

2003SHRM

 Change is the law of life, and

those who look only to the past or
present are certain to miss the
future.

Source: John F. Kennedy

HR: Leading People, Leading Organizations
2003SHRM

Thank You

HR: Leading People, Leading Organizations

2003SHRM

Questions Please
???????????????????

HR: Leading People, Leading Organizations

2003SHRM

Suggested Readings
Dave Ulrich. Human Resource Champions, Harvard Business School Press.
Jeffrey A. Mello. Strategic Human Resource Management, South-Western.
Dave Ulrich & Dale Lake. Organizational Capability. John Wiley and Sons,
Becker, Huselid and Ulrich. The HR Scorecard, Harvard Business School
Press
Jim Collins. Good to Great. HarperCollins Publishers, Inc.

HR: Leading People, Leading Organizations

2003SHRM

Old
New

Strategy
Advice

Strategy

Service

Advice

IT
SelfService

Service

Out
Source
Shared Services

Source: Prof. Ed Lawler, speaking at SHRM Foundation Thought Leader Conference, August, 2002

HR: Leading People, Leading Organizations

2003SHRM

WhatHRFunctions,IfAny,DoesYourOrganization
Outsource?(PleaseSelectAllThatApply.)
Topic

Outsource
completely

Outsource
partially

Completely
in-house

401(k) Administration

33.2%

51.1%

15.7%

Employee Assistance/Counseling

64.2%

19.5%

16.3%

Retirement Planning Help

24.9%

49.4%

25.7%

Pension Administration

27.5%

45.9%

26.6%

Temporary Staffing

27.7%

44.0%

28.3%

Background Checks

40.8%

26.6%

32.5%

Training and Management

Development Programs

5.4%

51.1%

43.5%

Executive Development and Coaching

7.6%

46.6%

45.9%

Health Care Benefits Administration

13.7%

39.7%

46.6%

Note: Ofbenefit
respondents
whose organizations offer that particular
Employee
administration
7.4% function.41.5%

51.1%

SOURCE: SHRM Weekly Online Poll July 2003

HR: Leading People, Leading Organizations

2003SHRM

WhatHRFunctions,IfAny,DoesYourOrganization
Outsource?(PleaseSelectAllThatApply.)
Topic

Outsource
completely

Outsource
partially

Completely
in-house

Payroll

8.5%

40.1%

51.4%

Risk Management

8.5%

37.6%

53.9%

Executive Staffing

4.8%

39.3%

55.9%

Employee Relocation

18.5%

22.0%

59.5%

HRIS Selection, Training and

Implementation

4.2%

35.7%

60.1%

Recruitment

0.6%

31.3%

68.2%

Executive Compensation and Incentive

Plans

1.2%

16.1%

82.7%

Policy Writing

1.4%

13.2%

85.4%

Administration of Compensation and

Incentive Plans

1.5%

12.6%

85.9%

Wage
and
Administration
2.3% function.8.6%
Note:
OfSalary
respondents
whose organizations offer that particular

89.1%

SOURCE: SHRM Weekly Online Poll July 2003

HR: Leading People, Leading Organizations

2003SHRM

Why Does Your Organization Outsource HR Functions?

(Please Select All That Apply.)
Choice

Count

Percent of Sample

Save Money/Reduce Operating Costs

102

26.0%

Allow Our HR Employees to Focus More on

Strategy

89

22.6%

Control Legal Risk/Improve Compliance

85

21.6%

Improve Accuracy/Flexibility/Responsiveness

71

18.1%

Take Advantage of Technological Advances Without 70

Capital Outlay

17.8%

Lack Expertise In-House

69

17.6%

Offer Services We Otherwise Could Not

66

16.8%

Allow the Company to Focus on its Core Business

57

14.5%

Other

19

4.8%

We Do Not Currently Outsource Any HR Functions

186

47.3%

HR: Leading People, Leading Organizations

2003SHRM