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Next-generation-hr 2011-insight-driven
Αριστοτέλειο Πανεπιστήμιο Θεσσαλονίκης
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Next Generation HR Insight driven NEXT GENERATION HR NEXT GENE NEXT GENE FOREWORD In 2010, the CIPD issued a rallying call to the profession. Our research, Next Generation HR: Time for change towards a next generation for HR, had discovered a quiet revolution amongst some dynamic HR leaders. Insightful actions were delivering results, but the language to describe it was missing. Conventional terms do justice to the unique nature of their work. We knew we were seeing glimpses that defined the future shape of the HR profession and implied its greater future impact. We wanted to use these examples, and our conclusions about them, as catalysts for a very different brand of HR a shift in purpose to an HR that would truly help build organisations that last. Since then, having embarked on further research and developed our thinking with senior leaders, with future senior leaders on a highly successful bespoke programme (now running a second cohort), now in a position to define the key element in ongoing evolution. That key is insight: intensely informed, powerful insight, rooted in a deep understanding of organisation, business and insight which is articulated through strategies and leadership behaviours that work now but, more importantly, carry organisations into the long term. The continuing economic difficulties offer painful proof that markets and organisations, even entire sectors, can be fragile. HR provides a model which is not only robust in itself but which, crucially, ensures that organisations become, and remain, robust. HR is the future of the HR function more apposite still, HR is designed to secure the future of organisations. 2 NEXT GENERATION HR ERATION HR Organisations we spoke to include: Aviva BT BAE Systems Carphone Warehouse Cancer Research UK Logica Nationwide Openreach Royal Sun Alliance Standard Chartered Bank We used different research models with organisations principally interviews, although we also conducted telephone interviews. The research took place between July 2010 and June 2011. Research from Next Generation HR Time for change is also referenced in the report. Organisations participating included:: BT Cancer Research UK General Mills Nationwide Shell Standard Chartered Bank Tesco Cambridgeshire County Council Asset Management plc Peterborough and Stamford NHS Foundation Trust South Tees Hospitals NHS Foundation Trust Surrey Police Xerox Research from Next Generation HR Asia The growth option: impact in Asia is also referenced in the report. Organisations participating included: BG Group Lloyds Banking Lloyds Register GSK Richemont IBM Growth Markets Logica CMG, Sdn Bhd Maquarie Bank Standard Chartered Bank Tesco International City Telecom (HK) Ltd Jebsen Co. Ltd Sony Ericsson New World Telecommunications Ltd The Hong Kong and China Gas Ltd Asia Ngong Ping 360 Ltd Asia Pacific Ltd MTR Corporation Ltd Shui On Construction and Materials Ltd Ericsson China Mobile JP Morgan Volvo Founder Group For the two original reports, more insights and blogs, please visit NEXT GENERATION HR 3 ERATION HR So when Boudreau and Ramstad, in Beyond HR: The New Science of Human Capital, comment that mission of the HR function is to increase the success of the organization improving decisions that depend on or impact we would add: the sustainable future of the HR should no longer be a game as that game ends all too soon. Instead, the function is there to steward the organisation into the medium and long term, which demands deep understanding of organisation, market and context, firm grasp and promotion of shared purpose and the delivery of insight. Or, to quote Stephen Dando, EVP and Chief HR Officer of Thomson Reuters and one of Next Generation strongest supporters: main challenge for HRDs is to create capacity amid the considerable demands so that they are able to focus their functions on the biggest drivers of value for their For many, that will be an but then, 15 years ago, many organisations aspired to be to the Nevertheless, a comparable deep shift of mindset and focus is required because HR as currently practised remains steeped in a strong service and process orientation. Often things is the measure of success for an HR function, with delivery and activity the most obvious symptoms of this. Insight is not currently at the heart, nor possibly even on the agenda, for the conscientious HR professional. This was vividly demonstrated through the findings of the first HR Outlook report (Autumn 2010). Designed to provide insight into current concerns and emerging trends in HR, HR Outlook surveyed more than UK HR professionals. One of its starker findings was that, when asked to rate their behaviour against the HR Profession Map, the least frequently displayed and least frequently encouraged behavioural trait was: The CIPD Map defines as an active interest in the internal and external environment, and in the continuous development and improvement of self and others at both organisation and individual In other words, curiosity is the absolute cornerstone of HR ability to deliver HR. And yet is the least common behaviour amongst HR people and the least encouraged. We therefore need a fundamental change in mindset amongst HR professionals similar to that from personnel to business partnering if the profession is to evolve again and offer organisations what they need to move sustainably into the future. NEXT GENERATION HR 5 NEXT GENE The HR Strategy Pyramid To visually articulate this mindset evolution, the shift in purpose and therefore the areas we believe will make the biggest difference to performance, developed the HR Strategy Pyramid (see Figure 2). Figure 2: The HR Strategy Pyramid Future proofing the organisation Strategic health of organisation People, culture and performance Core people processess and risk management Most of heritage is in the bottom two layers, which in concert look to drive consistent performance through the people levers. Moving up, at the next two layers HR places increasing emphasis on examining the fitness for purpose, now and in the future. The focus here is on supporting an organisation to do what is needed to drive performance that lasts encouraging strategic vision and using shared purpose to drive sustainable performance. The reality means HR often operating well in areas where the organisation most needs to help itself, if lasting performance is to be achieved. The shift in mindset requires HR to broaden its remit and its right to influence, ultimately to span the full height and breadth of the pyramid. As one interviewee said: spend three months of the year tied up managing the pay and performance process. We have to find ways to direct our talented resource onto more strategically significant 6 NEXT GENERATION HR NEXT GENE Figure 3: The domains of organisational insight Business Savvy Organisational Savvy Contextual Savvy savvy this is more than simply being financially literate and having a broad appreciation of how the business works, or what it does. This requires HR to have a deep understanding of the core and a deep appreciation of what makes the business successful, or prevents its success: HR acting as an applied business discipline. C ontextual savvy this requires not only an understanding of both the market trends and forces that are affecting the business now and in the future, but also an understanding of how the broader demographic, macroeconomic and societal factors are influencing the organisation now and in the future. O rganisational savvy this demands a rich appreciation of how the interplay of and factors enables or derails business success. This means a deep understanding of the impact of people, culture and leadership, and of change and specific of the organisation itself and its unique individuals. Knowledge of each is however, what is unique to HR is the vantage point at the intersection of the three savvies. This is where powerful and perspectives can be developed. 8 NEXT GENERATION HR ERATION HR at the intersection of the three domains represents HR done well. part of the management team running a business, with my particular focus on people. We asked our leadership team and they told us value you most when in that Lucy Lewin, Head of HR Global Functions, Standard Chartered Bank We might believe HR is already doing some of this. However, our experience and research suggest that only a handful of HR functions are developing deep organisational insight, and working at the intersection of the three domains. In the majority of cases this is more luck than judgement, and depends on a few bright and curious individuals. It is not systematic, nor even supported conscious systems or processes. And yet the potential of HR for true vision is unparalleled: has a of business I expect this of other functions. Part of their toolkit needs to be (see, feel, experience) but combined with an analytical skill set to interpret and Steve Robertson, CEO, Openreach NEXT GENERATION HR 9 ERATION HR Fewer, bigger ideas The outcomes of an HR approach are essentially fewer, bigger, ideas that can help drive the sustainable performance of the organisation. It is HR professionals doing what they do best, but in the areas that will make the biggest difference. where to invest to get the best return cannot be a decision made purely on experience and instinct. HR needs to consider wider sources of data, both internal and external, and develop the analytical skills to figure out where to focus its John Wrighthouse, Group HRD, Nationwide Though rare, HR leaders who do combine the perspectives offered the three savvies are able to bring to bear that unique insight into what is most needed to drive both and performance. This method allows for a broader and approach to HR one that offers unique value as it identifies what is needed to really unlock current and future performance. For example, Logica is currently discussing the importance of as the vital cultural shift required to drive competitive advantage in an industry whose offerings are traditionally differentiated products and technology. role here is all about helping to close the gap between describing the culture and living it at scale. A business which is strategically sound but in need of cultural change to truly realise its strategy requires very different things from HR compared with one dedicated to its own strategic reinvention. This is the case at BAE Systems, where partnership with key business leaders will define much of the agenda for profound change. The development and support needed at BAE centres on learning how to lead such business reinvention. More than just data There is a risk that is only understood in a narrow way, focusing too much on the and synthesising aspects, and too little on the ways in which we think the data can help to develop insight, and how insight in turn leads to the development of creative solutions which puts HR at the heart of the strategic development process. Data is only part of the story, albeit an important part. Through our research, we uncovered several examples of HR clearly in play at the of the three savvies. Here, data was being gathered and used in an innovative way to generate deep organisational insight, and the impact on business performance and strategy was evident. NEXT GENERATION HR 11 NEXT GENE CASE STUDY: AVIVA In 2009, Aviva launched a new brand promise based around the theme of individual recognition. To help embed this, the HR and corporate responsibility function collaborated with marketing to build a global marketing strategy a first for Aviva. The strategy culminated in the intention to build a global community programme called to designed to help recognise the unrecognised, giving every child living or working on the street the opportunity to fulfil their potential. The HR director for the region was part of this new project. A member of the regional board in and on the board of the business in India, she was also a key player in the strategy planning process both for the region and India itself, and as such was developing a understanding of the current and emerging context in which both operated. At the same time, as Aviva India planned their annual strategy, she became aware of a number of converging insights not just the context for Aviva India, but also some work its marketing team had done with customer focus groups and some recent conclusions from employee focus groups in Aviva globally. The marketing customer focus groups in the country had developed an insight around making an equation between the two and identifying white space for Aviva to develop investment products which enabled customers to fund their schooling. The employee focus groups globally had surfaced pride and passion for charitable work, but with an appetite for greater focus and a need to feel that of beyond organisational boundaries. The HR director, working with colleagues at group and on the regional and Indian board, spotted the opportunity to bring these separate insights together, creating a compelling and cohesive strategy to establish both the Aviva brand and a community presence in India, internally and externally. As a result, Aviva India successfully bid to take the new, untried to programme and pilot it in India. The HR director sponsored a savings product aimed at giving access to education to a wide group of parents across India, led the marketing director, an initiative which resonated across the group and built momentum for the Street to School programme globally. To date, the Street to School programme has made a tangible difference to the lives of street children in India and globally aims to positively impact children the end of 2015. Learning insight: Great insight can unlock better connections and in turn richer outputs. Where might such connections be in your organisation? 12 NEXT GENERATION HR NEXT GENE 3 H OW DO YOU BECOME MORE It is imperative that leaders of the HR function become In practice, this means becoming curious and working to unearth the unrealised asset we believe sits in all HR functions and HR individuals: rich seams of organisational insight. So how can HR become more To bring embedded insight to the surface, perhaps there are some practices and ways of thinking that need to be not least the understandable temptation to jump to execution, or delivery, without allowing truly rounded insights the space and the time to emerge. developed the Organisational Insight Hourglass (Figure 4) to demonstrate the stages HR professionals need to go through to develop first the insight and ultimately the solution. Figure 4: The Organisational Insight Hourglass Spotting patterns Immerse yourself Surface insights Create new possibilities Prototype and experiment how to apply the Organisational Insight Hourglass has been incredibly liberating. I have found holding yourself open to possibilities, slowing down the process, has meant the solutions are much Annette Reid, Senior Vice President, HR Centre of Expertise, Aviva 14 NEXT GENERATION HR ERATION HR Through our research we found a number of HR functions using creative techniques to bring the embedded insight held employees to the surface, with a view to initiating change and building competitive advantage. shared this way of thinking about insight with a number of organisations and also taught as part of the Next Generation HR Leadership Programme. What seen as a result is individuals and teams becoming better at joining up data to spot patterns. Instead of merely being immersed in their organisations, they are paying attention while being immersed. In other words, much more conscious of the organisational detail around them and the significance of that detail (and what can be done with it to effect change). In turn, hypotheses are created and insights brought to the surface. HR steps out of its facilitation and enabling role into a much more proactive, role. The results are impressive. have also used the hourglass as a model for coaching. Brought data into a discussion, surfaced data with individuals, held them at the curious stage and then began creating ideas, possibilities and solutions. This take long. One of our roles can be to create space for leaders with the right data, to develop powerful Lucy Lewin, Head of HR, Global Functions, Standard Chartered Bank NEXT GENERATION HR 15 ERATION HR out and synthesise should be broader, including not only analytical data, but also intuitive1 and experiential2 data. CASE STUDY: AV This passion for a wider pool of data came from a belief that HR teams hold significant embedded insight, but that it is rarely brought to front of mind in an intentional manner, and at best is only shared through some ad hoc conversation or incidental commentary. need to look through many different lenses. You just look at one set of data and be sure you have the answer. We spend time thinking of the right questions to ask and deepen the level of questioning to get to the Alison Hilton, HR Director Service Delivery, Openreach Again, it is unique perspective and access in organisations that enables them to build the credibility required to offer insight based on intuition or experience. A systemised process of can be used to facilitate a deeper level of questioning in particular through the embedded HR teams (business partners) whose intuitive and experiential data will prove incredibly valuable. Another participant in our senior programme, Louise Wallwork, HR Director at BAE Systems, sums up what gained from a focus on a more approach: I spent more time in my job noticing what was really going on around me, and placing a premium on creating space to think, I was amazed what I started to see. I have so much more of a sense of what the business needs to focus on and where we really need to challenge our old ways of thinking and working. Yet until I learned to slow down and overcome my own need to be immediately productive, I was driven the activities and role that an HR person In summary, as an HR professional: you tempering your instinct for activity with time to notice and understand going on around you in the organisation? Are you creating criteria for solutions instead of rushing to a solution? you refreshing ways of thinking and working instead of falling again into established methods, which may no longer deliver? you systematically asking questions to surface embedded insight of yourself, the organisation and others? you broadening your data pool to include all possible sources, both in terms of people and types of data? 1 Intuitive data the data we notice and feel instinctively is important. 2 Experiential data the data we obtain through experience and being part of a system or context. NEXT GENERATION HR 17 NEXT GENE 4 H OW DO YOU BUILD INSIGHT IN HR FUNCTIONS? TOOLS AND TIPS Having considered the direction of travel for Next Generation HR functions, now created some suggestions for how HR professionals might build an HR function. Where are you now? To assess where your HR function is currently focused and positioned, plot where you are using the HR Strategy Pyramid and a simple 2 x 2 matrix: Figure 5: The diagnostic tools Insight rich Future health of the organisation Strategic health of organisation Bottom of pyramid Whole pyramid People, culture and performance Core people processess and risk management Insight light The answers to some key questions will help you to assess the position of your HR function on both: How broad is the purpose of the function and what conversations and agendas does HR lead? are resources focused what percentage is focused on managing business and what percentage on building How are your talent management and leadership development processes? What insight is generated your HR function and where is it targeted? How contextual is the data and analysis in the function? What processes are in place to bring embedded insight to of embedded is the purpose of your organisation how clearly is it communicated and how instinctively is it understood? 18 NEXT GENERATION HR
Next-generation-hr 2011-insight-driven
University: Αριστοτέλειο Πανεπιστήμιο Θεσσαλονίκης
