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HR’s New Role
Becoming a Strategic
Business Partner
Presented by:
Muhammad Usman Zafar
 Why HR needs to transform?
 How Should HR Transform & Deliver Value
 Overview of HRBP Model
 Framework for linking HR Practices with Business Outcomes
 Best Practices in Talent Analytics
 Understanding Business Elements from HR’s Perspective
 Roadmap for implementing HRBP Model
Outline
Why HR Needs to Transform
The top four Key HR Concerns in Middle East
1) Learning & Development: The need for a huge makeover (93%)
2) Reinvention of HR: Up-skilling HR is not an option anymore (91%)
3) Culture & Employee Engagement: Millennials don’t look for a career but a meaningful experience (90%)
4) Leadership Development: It’s time to prepare the next generation (at all levels) (87%)
Source: Deloitte’s 2015 Global Human Capital Trends report:
Case for
HR Transformation
1. Value
2. Context 3. Stakeholders
4. Talent 5. Leadership 6. Org. Cap.
7. Structure 8. Practices 9. HR People 10.
Analytics
What to deliver?
How?
What to understand?
(PESTEL, Business,
Strategy)
(Customer, Investors,
Community)
Culture, Work Environment.
Team Work (W>S)
(Talent Availability &
Productivity(C x C x C)) (Brand, Sustainability)
How to organize HR dept.?
(Staffing, Performance,
Work structure, Reward) (Competency of HR) (Measurement)
What to focus on?
(value or activities) (Outside In)
Framework for
Value Creation
HR brings
to the table
Get HR to
the table
9. HR People
(Competency of HR)
8. Practices
(Staffing, PMS,
Work structure, Rewards)
How Should HR Transform &
Deliver Value
The Main Idea behind HRBP Model
Overview of
HRBP Model
Benefits to Other Functions
• Provision of customized solutions to achieve business objectives.
• Proactive & timely identification of workforce requirements
• Provides a single point of contact.
• Represents the interests of the client in HR
• Designs client specific talent development programs.
Benefits to HR
• Shift from “Service-Provider” mind-set to “Trusted Business Advisor”.
• Substantial cost savings through the automation and outsourcing.
• Transforms HR from cost centre to ‘added-value’ centre.
• Leverages technology for enhanced accessibility and self-service
• Freedom from the routine work.
• Enhanced coordination with line management and builds credibility of HR
Focus = HR Services
Inside out
Focus = Business Results
Outside In
How do we better analyze HR practices. How do we link HR to Business Results.
How do we explore new ways to operate better. How do we sense market trends that are not yet
understood.
Reactive Pro-Active
Dave Ulrich Original Model Model in Practice
Roles Transitioned into Jobs
Consultant /
Jr. HRBP
Strategic HRBP Consultant/Jr. HRBP Centre of Excellence Shared Services Centre
Adjusts corporate HR
strategies to respond to
changing business needs.
Understand talent needs of
the business. Provide
guidance to HRBP.
Single point of contact for
managers and responsible to
provide advice and
recommendations in matters
related to Talent Management.
Consists of specialist teams to
provide HR expertise in Talent
Mgt. practices
Responsible for provision of
transactional HR services and
routine HR enquiries.
Corporate Sales Manager Area Sales Manager Product Development After Sales Services
Overview of
HRBP Model
CHRO / HR Leader
Analogy
Overview of
HRBP Model
Blueprint of HRBP Model
Roles of HR Business Partner
Overview of
HRBP Model
Strategic Partner/Advisor
• Understanding the talent needs of the business.
• Adjusting HR strategies to respond to changing
business needs.
• Identifying talent issues before they impact business.
• Identifying new business strategies.
• Assessing the HR implications of strategic options.
• Representing the business units talent interests within
the organization.
Operations Manager
• Communicating org. changes to employees.
• Assessing employees attitudes.
• Tracking trends in employee behavior
• Designing HR programs to support org. culture.
• Communicating policies and procedures to
employees.
• Keeping the line updated on HR initiatives.
Employee Mediator
• Managing competing personalities in the
organization.
• Managing conflict between employees and manager.
• Responding to org. changes.
• Resolving political problems in the execution of
business plan.
Emergency Responder
• Quickly responding to the line manager
questions.
• Quickly responding to complains.
• Responding to manager needs.
• Responding to employee needs.
• Preparing to deal with emergency situations.
Critical Competencies of
HR Business Partner
Overview of
HRBP Model
Overview of
HRBP Model
HRBP Effectiveness Impact
Barriers to Implementation
 Application Barriers: Most HRBPs don’t know how to apply competencies in their day-to-day role.
 Partnership Barriers: Only 22% of line leaders actually ask the HRBP for strategic insights.
 Functional Barriers: Tensions between HR functional groups prevent coordination.
 Enterprise Barriers: Lack of effective coordination with cross-functional partners.
People-Profit Chain
Linking HR Practices
with Business
Supportive
Change Ready
Environment
Successful
Business
Strategy
Execution
Satisfied & local
Customer
Supportive
Change-ready
environment
Highly Engaged
Workforce
Effective
Management of
Talent
Talent
Leadership
Culture
Market
Strategy
Higher Market
Performance
Linking HR Practices
with Business
Talent Analytics Process
HR Data +
Emp. Survey
Data
Industry Data +
Financial Data +
Commercial Data
+ Customer Data
New Insights &
Tools for
Managers to
make better
decisions.
• Reactive reporting of personal & compliance measures (Focus on data
accuracy)
Operational Reporting
• Proactive reporting for decision making. (Analysis of trends & benchmarks, Self
service dash boards)
Advance Reporting
• Statistical Analysis to solve business problems, identification of issues and
actionable solutions (Centralized staffing & integrated data)
Advance Analytics
• Development of predictive models, Scenario Planning.
Predictive Analytics
Data Management,
Analytics,
IT Consulting
Talent Analytics Maturity Model
Best Practices – Talent Analytics
Google - “All people decisions at Google are based on data and analytics”
Linking HR Practices
with Business
Analytics/Research Findings Action & Results
Manpower Planning
Analytics team use “what if” analysis to continually improve their
forecasts of upcoming people management problems and
opportunities.
Action: Apply the scenarios for effective workforce
planning inline with rapidly growing and changing industry
trends.
Result: More accurate forecast.
Hiring
Analytics determined that Little value was added beyond four
interviews.
Action: Reduce the number of interviews to Maximum of 4
per hire.
Result: reduced the time to hire from 180 days to 45 days.
Leadership
Analytics team identified the eight characteristics of great leaders
whereby frequent personalized feedback ranked as the No. 1 key to
being a successful leader.
Action: Let the employees rate managers twice a year on
their performance on the eight factors.
Result: Improved Perf. Related discussions between
employees and managers.
Employee Retention
Employee turnover analysis revealed a patter among departing
employees and the analytics team came up with a formula to
predict which employees are most likely to become a retention
problem.
Action: Share information with management to act before
it’s too late and personalize retention solutions.
Result: Improved retention rate by 22%.
Workplace design drives collaboration
Research findings revealed that increased innovation comes from a
combination of three factors: discovery (i.e. learning), collaboration,
and fun.
Action: Design workplaces to maximize learning, fun, and
collaboration.
Result: Improved creativity and innovation.
Vision, Mission & Values
Vision
To become partner of choice for the
community.
Mission
To deliver insurance solutions.
Values
Performance, Customer Focus, Social
Responsibility
Stakeholders
Shareholders & Mgt.
• SH#1. ??%
• SH#2: ??%
• Board of Directors
• CEO
Customers
• Total = ?? Million(appx.)
• Individual customers: ? UAE
National ?? Expats
• Group Customers ?
Regulators
• HAAD, Ministry of Health
• Ministry of Finance
HealthCare Providers
• Hospitals
• Pharmacies
• Clinics
Business
Competition & Market
• Market Share =?,
• Main Competitor: ?
• Market Potential: Insurance Penetration
Ratio?
Product & Services Portfolio
• Insurance Plans
• After sales & Customer Services
• Medical Claim services
Financials
• Financial Outlook=?
• Income=?
• Net Combine Ratio=?
External Business Realities
Economics
• Crisis of Oil Prices
• Govt. Spending $1200/Person
Technology
• Implementation of DRG System
• Use of Smart Phone
• Integration of social media with business
services
Demographics
• Multicultural diverse population
Organization Structure
Chief Executive Officer
CCO CIO CMO CPO CFO CIO
Understanding
Context & Stakeholders
Vision, Mission & Values
• Does our HR practices, workplace set-up and culture support and facilitate Innovation?
• Are our PMS, L&D and C&B systems integrated & effective at measuring and rewarding performance?
Stakeholders
• How can we leverage skills and expertise from stakeholders for knowledge transfer ?
• What are the key priorities of our CEO and how should we prioritize HR initiatives?
• Are we meeting our employees’ expectations? How can we engage them to drive business growth?
• How well our workforce planning mechanism catering for multilingual staff to serve our diverse customers?
• Does our workforce need any training or skill building to meet compliance requirements?
Business
• Do we need to re-align our C&B practices in line with company’s current and future financials?
• What is our customer satisfaction rate and what is needed to improve it from training, performance, reward and workforce
planning perspective?
• How can we involve our customers in designing L&D and reward practices?
• Does our workplace practices and employee attitudes allow swift customer support to our customers?
External Business Realities
• How much the cuts in govt. subsidies and increase in govt. fees will impact Cost of Living? And how would it impact our
employees expectations for pay increments and bonuses?
• Should we restructure our finance department for VAT implementation?
• What are our clients in O&G sector doing to counter the negative effect of falling oil prices? And how are we
responding to that?
Organization Structure
Chief
Comm. Officer
Chief
Infor. Officer
Chief
Medical Officer
Chief
Process Officer
Chief
Finance Officer
Chief
Innovation Officer
• How can we build trust and develop strong working relationship with all the departments to share information?
• How can we facilitate the line management in achieving business outcomes?
Delivering HR Insights
Pre-Requisite
HR services are integrated and delivered to meet basic requirements
Introducing HR Partnering
 Develop clear rationale for the proposed changes and seek top management support.
 Think through the likely barriers and prepare the ground for changes inside and outside HR
 Put the new structure in place and build the HR team
 Communicate the changes and build a working relationship with peer departments.
 Hit the ground running, deliver results and develop credibility.
Strengthening Partnering
 Ensure that HRBP are involved in the business planning process.
 HRBP must apply analytical approach in linking productivity and people analytics.
 Align personal objectives of HRBP with assigned business managers’ objectives.
 Gather feedback on how well business partners are fulfilling their role and take appropriate action.
Tip: Focus on quick wins but don’t undertake too much too soon
Roadmap for
Implementation
Thank You for Your Time
“HR needs to be more ambitious for the
business and offer a vision of how the
business could be”.
THE END

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HRBP Presentation v4

  • 1. HR’s New Role Becoming a Strategic Business Partner Presented by: Muhammad Usman Zafar
  • 2.  Why HR needs to transform?  How Should HR Transform & Deliver Value  Overview of HRBP Model  Framework for linking HR Practices with Business Outcomes  Best Practices in Talent Analytics  Understanding Business Elements from HR’s Perspective  Roadmap for implementing HRBP Model Outline
  • 3. Why HR Needs to Transform The top four Key HR Concerns in Middle East 1) Learning & Development: The need for a huge makeover (93%) 2) Reinvention of HR: Up-skilling HR is not an option anymore (91%) 3) Culture & Employee Engagement: Millennials don’t look for a career but a meaningful experience (90%) 4) Leadership Development: It’s time to prepare the next generation (at all levels) (87%) Source: Deloitte’s 2015 Global Human Capital Trends report: Case for HR Transformation
  • 4. 1. Value 2. Context 3. Stakeholders 4. Talent 5. Leadership 6. Org. Cap. 7. Structure 8. Practices 9. HR People 10. Analytics What to deliver? How? What to understand? (PESTEL, Business, Strategy) (Customer, Investors, Community) Culture, Work Environment. Team Work (W>S) (Talent Availability & Productivity(C x C x C)) (Brand, Sustainability) How to organize HR dept.? (Staffing, Performance, Work structure, Reward) (Competency of HR) (Measurement) What to focus on? (value or activities) (Outside In) Framework for Value Creation HR brings to the table Get HR to the table 9. HR People (Competency of HR) 8. Practices (Staffing, PMS, Work structure, Rewards) How Should HR Transform & Deliver Value
  • 5. The Main Idea behind HRBP Model Overview of HRBP Model Benefits to Other Functions • Provision of customized solutions to achieve business objectives. • Proactive & timely identification of workforce requirements • Provides a single point of contact. • Represents the interests of the client in HR • Designs client specific talent development programs. Benefits to HR • Shift from “Service-Provider” mind-set to “Trusted Business Advisor”. • Substantial cost savings through the automation and outsourcing. • Transforms HR from cost centre to ‘added-value’ centre. • Leverages technology for enhanced accessibility and self-service • Freedom from the routine work. • Enhanced coordination with line management and builds credibility of HR Focus = HR Services Inside out Focus = Business Results Outside In How do we better analyze HR practices. How do we link HR to Business Results. How do we explore new ways to operate better. How do we sense market trends that are not yet understood. Reactive Pro-Active
  • 6. Dave Ulrich Original Model Model in Practice Roles Transitioned into Jobs Consultant / Jr. HRBP Strategic HRBP Consultant/Jr. HRBP Centre of Excellence Shared Services Centre Adjusts corporate HR strategies to respond to changing business needs. Understand talent needs of the business. Provide guidance to HRBP. Single point of contact for managers and responsible to provide advice and recommendations in matters related to Talent Management. Consists of specialist teams to provide HR expertise in Talent Mgt. practices Responsible for provision of transactional HR services and routine HR enquiries. Corporate Sales Manager Area Sales Manager Product Development After Sales Services Overview of HRBP Model CHRO / HR Leader Analogy
  • 8. Roles of HR Business Partner Overview of HRBP Model Strategic Partner/Advisor • Understanding the talent needs of the business. • Adjusting HR strategies to respond to changing business needs. • Identifying talent issues before they impact business. • Identifying new business strategies. • Assessing the HR implications of strategic options. • Representing the business units talent interests within the organization. Operations Manager • Communicating org. changes to employees. • Assessing employees attitudes. • Tracking trends in employee behavior • Designing HR programs to support org. culture. • Communicating policies and procedures to employees. • Keeping the line updated on HR initiatives. Employee Mediator • Managing competing personalities in the organization. • Managing conflict between employees and manager. • Responding to org. changes. • Resolving political problems in the execution of business plan. Emergency Responder • Quickly responding to the line manager questions. • Quickly responding to complains. • Responding to manager needs. • Responding to employee needs. • Preparing to deal with emergency situations.
  • 9. Critical Competencies of HR Business Partner Overview of HRBP Model
  • 10. Overview of HRBP Model HRBP Effectiveness Impact Barriers to Implementation  Application Barriers: Most HRBPs don’t know how to apply competencies in their day-to-day role.  Partnership Barriers: Only 22% of line leaders actually ask the HRBP for strategic insights.  Functional Barriers: Tensions between HR functional groups prevent coordination.  Enterprise Barriers: Lack of effective coordination with cross-functional partners.
  • 11. People-Profit Chain Linking HR Practices with Business Supportive Change Ready Environment Successful Business Strategy Execution Satisfied & local Customer Supportive Change-ready environment Highly Engaged Workforce Effective Management of Talent Talent Leadership Culture Market Strategy Higher Market Performance
  • 12. Linking HR Practices with Business Talent Analytics Process HR Data + Emp. Survey Data Industry Data + Financial Data + Commercial Data + Customer Data New Insights & Tools for Managers to make better decisions. • Reactive reporting of personal & compliance measures (Focus on data accuracy) Operational Reporting • Proactive reporting for decision making. (Analysis of trends & benchmarks, Self service dash boards) Advance Reporting • Statistical Analysis to solve business problems, identification of issues and actionable solutions (Centralized staffing & integrated data) Advance Analytics • Development of predictive models, Scenario Planning. Predictive Analytics Data Management, Analytics, IT Consulting Talent Analytics Maturity Model
  • 13. Best Practices – Talent Analytics Google - “All people decisions at Google are based on data and analytics” Linking HR Practices with Business Analytics/Research Findings Action & Results Manpower Planning Analytics team use “what if” analysis to continually improve their forecasts of upcoming people management problems and opportunities. Action: Apply the scenarios for effective workforce planning inline with rapidly growing and changing industry trends. Result: More accurate forecast. Hiring Analytics determined that Little value was added beyond four interviews. Action: Reduce the number of interviews to Maximum of 4 per hire. Result: reduced the time to hire from 180 days to 45 days. Leadership Analytics team identified the eight characteristics of great leaders whereby frequent personalized feedback ranked as the No. 1 key to being a successful leader. Action: Let the employees rate managers twice a year on their performance on the eight factors. Result: Improved Perf. Related discussions between employees and managers. Employee Retention Employee turnover analysis revealed a patter among departing employees and the analytics team came up with a formula to predict which employees are most likely to become a retention problem. Action: Share information with management to act before it’s too late and personalize retention solutions. Result: Improved retention rate by 22%. Workplace design drives collaboration Research findings revealed that increased innovation comes from a combination of three factors: discovery (i.e. learning), collaboration, and fun. Action: Design workplaces to maximize learning, fun, and collaboration. Result: Improved creativity and innovation.
  • 14. Vision, Mission & Values Vision To become partner of choice for the community. Mission To deliver insurance solutions. Values Performance, Customer Focus, Social Responsibility Stakeholders Shareholders & Mgt. • SH#1. ??% • SH#2: ??% • Board of Directors • CEO Customers • Total = ?? Million(appx.) • Individual customers: ? UAE National ?? Expats • Group Customers ? Regulators • HAAD, Ministry of Health • Ministry of Finance HealthCare Providers • Hospitals • Pharmacies • Clinics Business Competition & Market • Market Share =?, • Main Competitor: ? • Market Potential: Insurance Penetration Ratio? Product & Services Portfolio • Insurance Plans • After sales & Customer Services • Medical Claim services Financials • Financial Outlook=? • Income=? • Net Combine Ratio=? External Business Realities Economics • Crisis of Oil Prices • Govt. Spending $1200/Person Technology • Implementation of DRG System • Use of Smart Phone • Integration of social media with business services Demographics • Multicultural diverse population Organization Structure Chief Executive Officer CCO CIO CMO CPO CFO CIO Understanding Context & Stakeholders
  • 15. Vision, Mission & Values • Does our HR practices, workplace set-up and culture support and facilitate Innovation? • Are our PMS, L&D and C&B systems integrated & effective at measuring and rewarding performance? Stakeholders • How can we leverage skills and expertise from stakeholders for knowledge transfer ? • What are the key priorities of our CEO and how should we prioritize HR initiatives? • Are we meeting our employees’ expectations? How can we engage them to drive business growth? • How well our workforce planning mechanism catering for multilingual staff to serve our diverse customers? • Does our workforce need any training or skill building to meet compliance requirements? Business • Do we need to re-align our C&B practices in line with company’s current and future financials? • What is our customer satisfaction rate and what is needed to improve it from training, performance, reward and workforce planning perspective? • How can we involve our customers in designing L&D and reward practices? • Does our workplace practices and employee attitudes allow swift customer support to our customers? External Business Realities • How much the cuts in govt. subsidies and increase in govt. fees will impact Cost of Living? And how would it impact our employees expectations for pay increments and bonuses? • Should we restructure our finance department for VAT implementation? • What are our clients in O&G sector doing to counter the negative effect of falling oil prices? And how are we responding to that? Organization Structure Chief Comm. Officer Chief Infor. Officer Chief Medical Officer Chief Process Officer Chief Finance Officer Chief Innovation Officer • How can we build trust and develop strong working relationship with all the departments to share information? • How can we facilitate the line management in achieving business outcomes? Delivering HR Insights
  • 16. Pre-Requisite HR services are integrated and delivered to meet basic requirements Introducing HR Partnering  Develop clear rationale for the proposed changes and seek top management support.  Think through the likely barriers and prepare the ground for changes inside and outside HR  Put the new structure in place and build the HR team  Communicate the changes and build a working relationship with peer departments.  Hit the ground running, deliver results and develop credibility. Strengthening Partnering  Ensure that HRBP are involved in the business planning process.  HRBP must apply analytical approach in linking productivity and people analytics.  Align personal objectives of HRBP with assigned business managers’ objectives.  Gather feedback on how well business partners are fulfilling their role and take appropriate action. Tip: Focus on quick wins but don’t undertake too much too soon Roadmap for Implementation
  • 17. Thank You for Your Time “HR needs to be more ambitious for the business and offer a vision of how the business could be”. THE END

Notas del editor

  1. http://www.arabiangazette.com/top-challenges-faced-hr-middle-east-20150616/
  2. Human Resources Talent (Individual Ability) Culture (Org. Capability) Leadership Talent Availability: Right person, right place, right time, right skills Talent Productivity: Engagement (Competence x Commitment x Contribution) Culture: Workplace, structure, processes, Values
  3. http://shop.cipd.co.uk/shop/bookshop/media/cms/pdf/hr-business-partnering---introduction.pdf