Dont be a waiter take your seat the table ashrm (with video) march 2012 (2)

Don’t be a Waiter…Take
Your Seat at the Table!
Michael Brady, M.Ed., SPHR
Regional HR Manager – Southeastern US

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Don’t Be a Waiter …..
CHANGE

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CHANGE

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Don’t Be a Waiter….
 We must stop acting like the old “personnel departments”
of the past and we must stop being afraid of CHANGE
 A waiter will just maintain the same ole’ same ole’
 Sit at the table … take your role seriously… act like
the manager that you WANT to be and become the leader
that you NEED to be
 Remember… Business = Money!!

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Sit at the Table!!
“A leader has got to show their troops the
route of the march and the destination”
Frank Pacetta
XEROX Sales Manager

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Don’t Be a Waiter …
“You can rule by divine right, or you can create and
be a leader, promote an atmosphere of learning,
creativity, and positive energy. That kind of
thinking brings gratification and high morale”
Mary Ellen Hiatt
Southern Home Furniture

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Sit at the Table!
 We must be sure that we are COMMITTED to the
organization’s core purpose and objectives and we must
also ensure that we line our people up behind us.
 The table is NO place for a pencil pusher or a paper
shuffler. It is a place of decision and action.
 Take your seat by earning it and by showing that you
deserve to be there and that HR can make a difference

The Missing Link for Human
Resources?
Business Acumen
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Take your seat …..
Six Steps to Building a
Profit Center

Six Steps
 Business Problem
 Cost of Problem
 HR Solution to Problem
 Cost of Solution
 Dollar or Percent Improvement Amount for Solution
 Cost-Benefit Ratio 11

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Six Steps to Building a Profit Center
1) Identify and analyze business problems from a
profit-oriented, not just service-oriented, point of
view
 This could be a problem with productivity,
turnover, managerial effectiveness, sales, or any
other issue that every business must successfully
handle in order to be more profitable
 This problem must be clearly stated and clearly
understood

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2) Cost of Business Problem
 It is not just important to identify the problem and
not do anything about it
 We must determine how much the problem will
cost or what it is costing at present
 This will allow you to measure the cost-
effectiveness of the solution

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3) Solution to the Business Problem
 What specific HR oriented solution could
overcome the problem?
 Ex: Productivity is the problem
 Possible solutions
 Better selection methods
 Incentive pay systems
 Attitude surveys
 Suggestion boxes
 Teambuilding

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4) Cost of the Solution
 Simple cost accounting to determine what dollars
it will take to implement the solution
 Important check at this point – will the solution
cost less than the problem??

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Basic Cost Accounting
 Jot down each possible expense or benefit
 Calculate the dollars associated with each expense or
benefit
 Take as many costs and benefits into account as possible –
this will help provide the measure of how effective the
endeavor has been
 Use conservative figures
 This will help a cynical executive admit that the HR dept
efforts did indeed improve profitability
 Keep it simple – do not create a mountain of paperwork
to carry out the solution!
 Remember … we are trying NOT to be the stereotypical HR
department regarded already as paper pushers!
 Get measurable results without the stigma

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5) Improvement Benefits from the Solution
 This should show the improvement value from the
solution
 I.E., sales go up, costs go down, absenteeism
reduced, etc.
 This dollar improvement amount should be more than
the cost of the problem and the cost of the solution
 If the cost is more than the above, the solution was/is
not worthwhile from a cost-benefit standpoint

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6) Cost-Benefit Ratio
 Proves the bottom line measure of how successful
the solution was
 Similar to a ROI
 Tells us how much money was earned compared
to how much was spent
 Ex: If a $100,000 improvement resulted from a
$10,000 solution the cost-benefit ratio was 10:1
 For every one dollar spent on the solution, $10 was
reaped in benefits

Example of Planning Model
 Business Problem
 Decreasing sales at a steel products company
 Cost of Business Problem
 Sales dropping 10%/year
 Current sales $90 million down from $100 million
 Solution to Business Problem
 Change salespeople’s compensation from salary-only to salary +
commission
 Commission = 5% of each salesperson’s sales over
$1,000,000/year
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Example of Planning Model
 Cost of Solution
 Number of Salespeople X Avg. Commission paid
 100 X $2,500 = $250,000
 $ Improvement Benefit
 Benefit = Sales increase – commissions paid
 $15 million/year less $250,000 (cost of the solution)
 $14.75 million/year (Improvement Benefit)
 Cost Benefit Ratio
 60:1
 $14,750,000:$250,000
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Planning Model
 The planning model is elegant in its simplicity
 KEEP IT THAT WAY!
 No mountain of paperwork to carry out the HR
Profit Center
 Remember … K.I.S.S (Keep it Simple Stupid)
 Get measurable results in a simple, effective
solution
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Sit at the table ….
The Five Elements of
Business

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The Five Elements of Business
1) CASH IS KING!
 The oxygen supply of any company and allows
you to stay in business
 Cash Generation
 Or cash flow is the difference between cash that
flows into the business and the cash that flows out of
the business in a given time period.
 How can HR impact cash flow in your company?
 What single action can you commit to, to
positively impact cash flow in your company?

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2) MARGIN
 What is left over after expenses are paid
 Can be dollars or a %
 Most common are gross and net
 Gross margin deducts costs of goods sold
 Net margin deducts all expenses
 How do you improve Margin?
 Increase the price or decrease the cost on a single product
or service
 Increase sales or decrease expenses to improve company
margins
 How can HR affect margin in your company?
 What action are you committed to, to increase margin?

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3) VELOCITY
 Means speed – decreasing cycle time and improve
employee productivity
 How fast and how hard can you make your assets work to
make more money
 The more increase in an asset’s ability to make money, the
higher the velocity
 Improve Velocity in two ways
 Decrease the amount of assets used to get results
 Improve the results you get from assets
 How does HR impact velocity in your company?
 What action can you commit to, to increase velocity?

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4) Growth
 Measured in three ways
 Top-line (sales)
 Bottom-line (profit)
 Earnings per Share
 Types
 Organic – growth that comes from existing business
 In-organic – from mergers and acquisition
 No growth = lagging behind in the business world

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 Growth
 If your company is not growing … You will be
overtaken by competition
 Forces a company to change and to anticipate
customer needs, as well as to look for new
opportunities
 How does HR affect growth in your company?
 What action are you committed to, to impact
growth?

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5) Customers
 End user of your product or service
 Can be another company or individual
 Could also be internal customer
 We must know our customer’s every move in preference,
emotion, and action.
 We have to anticipate them or lead them in all areas
 How does HR anticipate customer’s needs in your
company?
 What action are you committed to, to better anticipate
customer’s needs and expectations?

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Without customers’ trust,
the rest doesn’t matter

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What do you know about your
company?
 Understand Your Company
 How much cash is on hand?
 How much cash is generated from operating activities?
 What is the net income?
 What is the net profit margin?
 How is that margin compared to competitors?
 What are your company’s sales during last year?
 Is the company growing?
 What is your inventory turnover?
 Is your cash generation increasing or decreasing?
 Are you gaining or loosing to competition?
This is the language of TOTAL BUSINESS

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Understanding Your Company
Annual Reports/Financial Statements
 Do you know where they are?
 Can you read them?
 Can you interpret and explain them?
∆οεσ ιτ λοοκ λικε Γρεεκ το
ψου???

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Annual Report
 Statement of Income
 P&L, Statement of Operations, Statement of Earnings
 Indicates profitability
 Balance Sheet
 Statement of Financial Condition or Position
 Indicates Financial Strength
 Statement of Cash Flow
 Details Cash flow between the business and the outside
world
 Indicates CASH sources and uses

Where is YOUR Seat?
 Where does Human Resources fit in the
total business picture in your company?
 Do you know?
“Step back and get a total picture of
business. As you cut through the
complexity, you will get a clear fix on
what is happening in the real world”
Ram Charan 33

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Be a Leader … Build Relationships
 Become a leader in your business
 Focus your department efforts on being a leader of people.
 Make decisions … right or wrong … make a decision!
 Find the right people for the right job and take personal
responsibility for developing their skills and focusing their
energy
 Why is it that no one ever flunks a company training
program??
 Be a conduit for linking people’s effort to business priorities
 BUILD THE TEAM that will support and run the company
 Be a part of the BUSINESS that is your business

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Be a Leader … Build Relationships
 Maximize every employee’s level of contribution
 Treat them with the same way a hospital treats its doctors,
the airline treats its pilots, and a law firm treats its
attorneys … as professionals
 Success in any given employee might just hinge on
whether or not you know their name and whether or not
they are treated as if you care about them and that they
have the talent needed to be successful
 Positive people success and positive relationships will
ensure your seat at the Table … they will equate with
YOUR success!
 “Relationships are the glue to which hold teams together”
John Maxwell

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Grow Relationships with People
“What really distinguishes trusting relationships
from distrusting ones is the ability of those
involved to make a leap of faith…they must
believe that each is interested and committed to
the other’s welfare, and that neither will act
without first considering the other” ….
Contented Cows give Better Milk
Richard Hadden

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A Brief Lesson in Human
Relations

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Growing People
 The right person in the right job
 Dealing with mismatches
 Are you afraid of making or recommending
changes? Why?
 Coaching
 For success
 For business
 For behavior
 We must help people expand their abilities and
synchronize their work efforts

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 The Least Important Word: I
 The Most Important Word: We
 The Two Most Important Words: Thank you
 The Three Most Important Words: All is forgiven
 The Four Most Important Words: What is YOUR
opinion?
 The Five Most Important Words: You did a great
job!
 The Six Most Important Words: I want to
understand you better

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 Take these to heart … everything we do relates to words
and our choice of them.
 Put them together in the proper way and we can reach
out not only to each other, but to our employees.
 Use these as priorities in dealing with others and it will
allow us to see things from the OTHER side.
 The key to growing relationships lies in these words …
we are all human beings and we all want to be treated as
such
 Bottom line …. Become a servant leader in your
organization

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“Sincerity is the most important part of positive
treatment. The only thing worse than a coach or
CEO who doesn’t care about his people is one
who pretends to care. People can spot a phony
every time. They know he doesn’t care about
them, and worse, his act insults their
intelligence”
Jimmy Johnson

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Let Your Principles Be Your Guide
“A people that values its privileges
above its principles soon looses
both”
Dwight D. Eisenhower

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To Certify or Not to Certify?
 If you do not take the time to earn your
PHR/SPHR/GPHR/CEBS then why should you
get a seat at the table?
 Seats at the table are earned through hard
work and measured success
 Certification is a true indication of YOUR hard
work and a measure of YOUR success
 These designations speak volumes in our
profession
 www.HRCI.org

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HAVE FUN!
 Choose your attitude …
 you must provide the contagious good attitude and help it
flourish
 Be a servant leader ….
 Understand it and live it
 Stay involved and give good honest feedback
 Commit yourself to helping others succeed
 Make their day as fun as yours … it works!
“If its to be … its up to ME!”
Dr. Tim Lautenheizer

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Tomorrow and Beyond …
 What are you going to do differently tomorrow?
 Are you going to do anything differently tomorrow?
 What actions did you commit to during this presentation?
 What is going to be your first move?
 Talk to your partner and exchange e mail and phone
numbers … commit to a specific date to get back together
and review what you did to make an impact.
 Don’t back away from the challenge … pick three or four
items to focus on and go beyond the normal HR
department and build a department that can execute
business priorities and watch you career and your
department take off!

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Final Thoughts
“Do or do not … There is NO TRY”
Yoda
“Blessed are the flexible for they
shall not be bent out of shape”
Michael McGruff

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CHANGE
Its time to embrace, accept, and lead!

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www.thehrdude.co
m
Michael Brady, M.Ed., SPHR
michael.brady@beis.com
mike@thehrdude.com
Twitter: LaHRDude Linked in:
Michael Brady
“When someone shares with you something of
value, you have an obligation to share it”
Chinese Proverb

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References
 Charan, Ram. “What the CEO Wants You to
Know”. 2001
 Merecer, Michael. “Turning Your HR
Department into a Profit Center”. 2002
 Hadden, Richard. “Contented Cows Give Better
Milk”. 2001

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