New employees
1. Afret Warehouse Supervisor 2. Elias Financial Controller 3. Ratna CSR 4. Ferry Warehouse staff HR 5. TRANFORMATION Maulana Warehouse staff
HR as being in a unique position with the potential to exert possibly the greatest influence on the ability of an organization to achieve a sustainable competitive advance through protection and enhancement of its intangible assets
HR Transformation is defined as a process of recreating or reinventing the HR function-with the specific intent of enhancing HR contribution to the business
WHY REDIFINE ?? OR REINVEINTING ??
CHANGE Technology Globalization Customer expectation Market and Business Demand
DRIVER OF HR TRANSFORMATION
% Part of a broader organization-wide transformation process Response to changes in organization CEO or business leaders mandate for change Leadership changes in the HR function Company-wide cost reduction mandate HR not adding value in its existing role Other 39 24 11 11 6 5 3
PHASE OF HR TRANSFORMATION
Why we do HR transformation ?
What we do get if we do the HR transformation
How we do the HR transformation
Who does it?
Human Capital Dev
Employee Advocate
HR Role
Strategy Partner
Administration Expert
Transactional Transformational
HR TRANSFORMATION
From....To style From administrative to strategy From day- to- day to long term HR has to be and...also Both administrative and strategy
HR AS A SOURCE OF VALUE OR COST
2003 2006
35%
Value
32%
50/5 0
53% 31%
12%
Cost
37%
HR TRANSFORMATION
SHIFTED HR Focus OUTCOME
more than ACTIVITIES
PERCENTAGE OF HR STAFFS PERFORMING HR ACTIVITIES
12%
31% 13%
Delivering HR services Transacting/record keeping Strategic partnering Designing HR programmes or system Compliance/auditing
16%
28%
HR TRANSFORMATION
The aim of HR transformation is to shift the relative amount of time spent on core HR activities towards Consultation, Planning and Strategy
Strategy
Strategy
Planning
Planning
Consultation
Procedures / Compliance
Consultation
Procedures / Compliance
Aministration
Administration
Shifting Tangible Intangible
HR SOURCING
Outsourced In-sourced-provided through a shared service arragement In-sourced-provided through a decentralized model Co-sourced partnership of internal and external provides
Recruitment Remuneration Training Performance2% Payroll
9% 8% 8%
26% 44% 32% 47% 28%
26% 31% 24% 44% 38% 43% 20% 35% 36% 42% 48% 20% 29% 25%
38% 17% 35% 8% 14% 14% 18% 15% 19%
OHS&E Pension Benefits HRIS
7% 26% 14% 8%
REASON FOR HR SEEN AS A STRATEGIC PARTNER
HR builds and/or links data sets to provide enhanced decision support
51%
HR is brought in early to significant business issues/opportunities
52%
HR is expected to help improve labor productivity
58%
HR drives or develops methodologies to drive change in the organization
64%
HR is expected to translate business strategy into a human capital strategy for the business
65%
HR is an active participant when discussing significant business-wide issues
66%
HR is part of a business operations planning
70%
HR and Business Strategy
To be able to play strategic role HR needs to participate in defining the business strategy and to play an instrumental role in translating business strategy into practice
External environment
Business design
Workforce design
Capability selection Employment value proposition Talent economics
HR design
Strategy
Customer selection Customer value proposition Profit model Strategic control
Customer requirements Functional value proposition Cost management Business outcomes
Communication and change management
Scope of activities Managerial structure
Work process
Decision rights Development and knowledge mgmt Rewards
Sourcing HR architecture Governance Technology Process HR talent
Execution
OUTCOME
More talented workforce A Leadership Bench Unified Culture More efficient Organization
OUTCOME OF HR INITIATIVES AND ACHIEVEMENT
Achieved
Better HR Service delivery 26% Better HR info 23% Reduce administration time 22% HR need to support business decision making Improve customer satisfaction 20% Self-service for managers 17% 17% 22% 19% 26% 26% 26% 31%
Driver
High quality support tools for key HR processes 11% 16% Reduce cost 11% 15%
Corporate driven technology change that affected HR 0% 10% An improved HR to employee ratio 8% 9%
TOP HR CHALLANGE
Acquiring and retaining key talent Driving cultural and behavioural change in the organisation Building leadership capability Increasing workforce productivity Increasing line manager capability to handle peoplemanagement responsibilities Placing constraints on headcount (making do with less) Implementing people changes resulting from changes due to operational performance Implementing overall human capital costs Reducing overall human capital costs
% of participants 60% 44% 30% 24% 21% 19% 19% 13% 11%
What is the Barrier of HR Transformation
HR is to busy or lacks decision making power Weak HR transformation technology
Skills and Capabilities or HR Staff
Negative Business Perception of HR Insufficient capability of line managers Weak HR and business leadership
AREA OF HR TRANFORMATION
HR STRUCTURE HR TECHNOLOGY HR PROCESSES HR SKILSS & CAPABILITIES
HR STRUCTURE
Simplify the processes and reduced cost of dayto-day- operation
Increase the expertise
Better alignment of business partners requirement
HR STRUCTURE
HR business partner reporting to business leader
47%
HR controllers
48%
Separate HR function within business units
55%
HR service center (SSC)
57%
HR implementation specialist
63%
HR business partner reporting to HR
64%
HR center of excellence
65%
HR TECHNOLOGY
To improve HR service delivery To reduce time spent on HR transaction
To Increase accessibility of HR information and data
80% 70%
69%
60% % respondents 50%
49%
40% 30% 20% 10%
46% 42% 37% 34% 33%
8%
0%
HR PROCESSES
To ensure the effectiveness execution of its plan and strategy
INITIATIVE UNDERTAKEN DURING HR TRANSFORMATION
Assessment of HR customers' Implementation of a new HR organisational Audit of current HRIS technology Assessment of HR function effectiveness Design of a new strategy for delivering HR Evaluation/implementation of new HRIS Redesign of HR work processes Decentralisation of selected programmes in 41% 29% 28% 24% 21% 21% 23% 34% 60% 46% 50% 43% 43% 43% 32% 40% 37% 13%
46% 11% 25% 17% 80% 9% 25% 61% 11% 42% 19% 56%
Talent development strategy for improving
Outsource any part of the HR function Strategy for attraction/retention of the HR staff Changes in reward strategy for HR staff
20%
14% 29%
38%
42%
57%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Completed Planning to complete in the next 12 months Not under consideration for the next 12 months
HR SKILLS & CAPABILITIES
People Management Skills
Organization Development skills
Business and Operational skills
SKILLS TEND TO BE AS A STRONG
Functional HR experience Interpersonal skills Interviewing and assessment Team skills Record keeping/ data maintenance Customer service
0% 20% 53% 39% 8%
52%
41% 7%
49%
36%
15%
49%
41%
10%
46%
46%
8%
41% 40% 60%
43% 80%
16% 100%
Strong/very strong
Sufficient
Weak/very weak
SKILLS WITHIN HR TEAM TO BE VIEWED AS WEAK
Business strategy skills
55% 50% 48% 44% 43% 43% 40% 39% 39% 39% 38% 35% 42% 45% 42% 47% 45% 36% 9%
Financial skills
Cross-functional expertise Cost analysis and measurement
43% 7% 42% 10% 40% 40% 42% 16% 17% 15%
Organisational assessment /
HRIS data analysis and reporting Vendor management Cultural change / transformation Process management / process Change management Project management Business understanding
49% 11% 19% 16% 19% 15% 20%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Weak/very weak Sufficient Strong/very strong
How do you measure the effectiveness of the HR function? HR customer satisfaction HR cost HR staff/employee ratio HR programme effectiveness Line manager effectiveness as people managers Impact on business operations/outcomes Processes in place to lead/facilitate organiZational change HR operational measures Increased customer usage of HR staff for more strategic interventions (rather than using external providers or building capability outside of HR)
Workforce productivity Shift in staff time spent to higher value-added activities No specific measures Other
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alfons.djawa@conbear.com
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