STRATEGIC HR MANAGEMENT WITH IMPACT:

FROM STRATEGY TO EXECUTION

Marius Meyer, CEO: SABPP

10 October 2014, Harare

marius@sabpp.co.za
@MariusSABPP & @SABPP1
The need for Strategic HRM
“If HR does not force its way into the heart of
strategic planning in an organisation, it will default
into a technical and transactional dead end.”

Helen Drinan, Former CEO: SHRM

The role of HR …
 IBM CEO Study 2012:
Factors impacting organisations

1 Technology factors (71%)

2 People skills (69%)
3 Market factors (68%)
4 Macro-economic factors
5 Regulatory concerns
6 Globalisation
7 Socio-economic factors
8 Environmental issues
IBM CEO Study 2012
9 Geopolitical factors
 The results of our research indicated that our top three priority
CCR’s include the following:
CCR TOTAL

Understanding the Talent needs of the business 54

Redesigning Organisational Structure around strategic objectives 48

Understanding how HRB’s can support the business 43 • Identifying talent issues before they impact the
Adjusting HR strategies to respond to changing business needs 42
business
Identifying HR Metrics 35 • Adjusting HR strategies to respond to changing
Identifying talent issues before they can impact on the business 32 business needs
Developing the next generation of leaders 30 • Understanding how HR business partners can
Utilising new business strategies 25

Prioritizing across HR Needs 13 support the business

Keep the line updated on HR initiatives 11

Tracking trends in employee behaviours and attitudes. 11

Communication around HR in general 6

Quickly responding to employee needs 6

Business

Learning Solutions
Capacity building/Skills development 5 Leader’s

Career Paths
Expectations
Retention of talent within the business 4 Key HR Business Competencies
OR
Partner Outputs
Respond to manager needs 4 Critical Customer
Requirements
Resolving political problems in the execution of business plans 3 (CCR’s)
Enforcing standard HR policies and procedures 3

Assessing Employee attitudes 2

Managing conflict between managers 2 SABPP – Registration HRD

SABPP - ETQA Committee Committee
Responding to organisational changes 2

Preparing for different situations 1

SABPP Strategic Vision
Keep abreast of new legislation that may impact on business 1 “To Professionalise the HR Profession”

Communicating organisational culture/values to Employees 1

 PARADIGM SHIFT
OPERATIONAL MINDSET
• Day-to-day tasks
• Transactional HR
• Getting things done
• Crisis reactive management
• Doing things now
• Training for tasks
• Managing people
• Internal focus
• Short-term measures
STRATEGIC THINKING
• Long term priorities
• Transformational HR
• Creating value
• Proactive management
• Planning things for future
• Organisational capability
• Leading people
• External focus
• Strategic measures - metrics
 The strategic dilemma

“How can you strategise for the future, when

you can’t see beyond 18 months?”
Fast Company Magazine
Why Bother?
• The alternative to strategising is to take
change as it comes and deal with
contingencies
HR Trends
• HR as Strategic Partner and Talent Management
• HR Governance
• HR Risk Management
• New role to impact ethics in organisations
• HR contribution to CSR and socio-economic
situation - sustainability
• HR Technology and Social Media
• HR standards and metrics – integrated reporting
• HR Competency models - professionalism
Biggest Opportunities for HR

• Cultivating creative leaders

• Mobilising for greater speed and

flexibility

• Capitalising on collective intelligence

i.e. collaboration
IBM: Working beyond Borders
 Most important organisational
capabilities over the next five years

Leadership 37%

Execution speed 34%

Client connectivity 33%

Innovation 31%

28% 30% 32% 34% 36% 38%

IBM: Working beyond Borders

 Top facts about HR
• Human Capital is the biggest concern for
CEOs (PwC).
• Only 18% of CEOs feel confident that they
have the right people in place to execute
strategy (CEB).
• Human Capital is the biggest risk in
business (HCI Africa).
• Skills crisis is the top obstacle to economic
growth.
• Strikes cost SA R197 million per day.
 More facts about HR
• SA losing R12 billion a year due to absenteeism.
• Only 5% of employees understand business
strategy.
• World-wide only 13% of employees actively
engaged.
• Companies with engaged employees outperform
others by 202% (Dale Carnegie).
• Companies with good HR Practices outperform
others by treating HR as critical business function,
these companies are 105% more profitable.
• Average ROI on wellness programmes: 300%.
SABPP HRM SYSTEM STANDARDS MODEL
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT

Prepare
❶ Strategic ❷ Talent ❸ HR Risk

HR COMPETENCIES
HRM Management Management

HR ARCHITECTURE
❹
❺ ❻ ❼ ❽
Imple- Work- ❾ ❿
force
Perfor- Well-
ment ERM OD
Learning mance Reward ness
planning

⓬
⓫ HR Service HR VALUE & HR Technology
Delivery DELIVERY PLATFORM (HRIS)

Review
⓭ HR MEASUREMENT Improve
HR Audit: Standards & Metrics
HR/Line relationship?
 STRATEGIC HR
MANAGEMENT STANDARD
DEFINITION

Strategic HR Management is a systematic

approach to developing and implementing
long-term HRM strategies, policies and plans
that enable the organisation to achieve its
objectives.

SABPP (2013)
 STRATEGIC HR
MANAGEMENT STANDARD
OBJECTIVES
1.2.1 To ensure the HR strategy is derived from and aligned to the organisation’s
objectives in consultation with key organisational stakeholders.
1.2.2 To analyse the internal and external socio-economic, political and
technological environment and provide proactive people-related business
solutions.
1.2.3 To provide strategic direction and measurements for strategic innovation and
sustainable people practices.
1.2.4 To provide a foundation for the employment value proposition of the
organisation.
1.2.5 To establish a framework for the HR element of the organisation’s
governance, risk and compliance policies, practices and procedures which
balance the needs of all stakeholders.
1.2.6 To determine an appropriate HR structure, allocate tasks and monitor the
development of HR competence to deliver HR strategic objectives.
SABPP (2013)
 STRATEGIC HRM STANDARD ELEMENT:
IMPLEMENTATION

Organisation’s Environmental People strategy

strategic intent scan (PESTL)

Framework of Allocate roles & HR

People responsibilities strategic
HR policies & (line/HR/support
strategy programmes functions)
agenda

HR HR structure, service HR MONITOR &

strategic model and capability business EVALUATE
agenda development plan
The Meaning of Strategy
External social, technological, environmental, economic, political, legal, market and
shareholder requirements

Means Ends
makes operative
Mission Vision

planned by amplified by
Course of Action

means of

Desired Result
Strategy Goals

implemented by quantified by

Tactics Measuring Strategy execution Objectives

enabled by

Processes should be
Benefits aligned to
Enablers

Realisation
Structure

Technology
Adaptation of the Business Motivation Model
Typical strategic HR process

Planning & HR vision & Environment

preparing process mission scanning

Formulate Long term HR

HR analysis
strategies goals

Implementation/ Monitor & Strategic

deployment evaluate alignment
 Organisation Strategy
Strategic Level

Corporate Scorecard Business Design Organisation Design

(Operating Model & Value
Chain)

Deployed Scorecards Business Processes Work Design

Tactical Level

Personal Scorecards Process Activities Job Design

Personal Level
THE ESSENCE OF HR IS TO
ACHIEVE THE TWO TOP HR
PRIORITIES

• Employee engagement

• Employee performance (business results)

If you don’t spend 90% of your time working actively

and passionately with management and employees
on these two HR priorities, you are wasting your
time.

If your HR practices are not focused on these two

priorities, you are not adding value to the
organisation.
 Strategic Analysis

WEAKNESSES
OPPORTUNITIES
• Low visibility of HR
• Local skills development
• Poor communication
• Stronger talent pipeline
• Lack of technology
• Alliances in countries
• Low satisfaction levels
• E-learning

RISKS
STRENGTHS
• Safety of staff
• Good learning centre
• Political risk - countries
• Clear talent pools
• Regulatory challenges
• Ethical culture
• Capacity to deliver
• Sound leadership
• Employee retention
• Great team of expats
Do you manage HR risk?
 Activity

1. What are the current strengths of your HR

Strategy?

2. What are the areas for improving your HR

Strategy?
 How to become a strategic thinker

• Know the strategy of your business

• Study the strategies of other businesses
• Read more about strategy
• Internalise the annual report of your
company
• Identify HR opportunities from the strategy
• Put your strategy on one page
• Develop an HR Risk Framework
• Do proper HR analytics and metrics
The execution gap
 From strategy to execution
• Make HR strategy visible.
• Convert HR strategy to specific action plans
to be executed – clear priorities.
• Clear lines of responsibility and
accountability.
• Cascade overall strategic measures to team
& individual performance management.
• Build a high performance execution culture.
• Review and monitor execution of strategy.
• Identify and resolve problems as they arise.
Value Chain in Context
 Activity

1. Identify current gaps between HR strategy &

execution at your organisation.

2. How can these gaps be filled?

 HR strategy:
It is all about alignment & execution
 Conclusion

HR professionals need to move from an

operational to a strategic mindset. But we
need to ensure that our HR strategies are
executed. Thank you for joining us on the
journey towards high impact strategic HR
thinking, plans and results.
 Let us build our organisations with sound
strategic HR Management!

professional@sabpp.co.za (Professional Registration)

xolani@sabpp.co.za (Operations)
kenneth@sabpp.co.za (Stakeholder Relations)
penny@sabpp.co.za (Research)
naren@sabpp.co.za (Learning & Quality)
marius@sabpp.co.za (Strategy inputs)
voice@sabpp.co.za (Social media)

Website : www.sabpp.co.za
Office: 8 Sherborne Str, Parktown, South Africa
Tel: +27 11 045 5400 Fax: +27 11 482-4830
Cel: 082 859 3593 (Marius Meyer)