Monday, March 31, 2014

5 Ways HR can Impact Strategic Execution



I am always honored when I am asked to write for others.  I have had the pleasure over the last year to write for Halogen Software's TalentSpace blog.

I was inspired by this recent article by the 300+ attendees we have had over the last year in our workshop, "Moving HR from Transactional to Strategic: Becoming and Effective HR Business Leader"

Check out the article here, and look around TalentSpace Blog, there are a lot of great writers and info on the site.

Wednesday, January 22, 2014

5 Lessons Learned in Becoming an Effective HR Business Leader


Over the last year my colleagues Ed Nangle and Charlette Stout and I have had the PLEASURE of teaching an awesome 1.5 day workshop called, "Moving HR from Transactional to Strategic: Becoming an Effective HR Business Leader." Over this year we have taught approximately 300+ attendees on how they can navigate a change in their HR model, HR services and HR brand using a strategic approach. It has been very rewarding and given us a new sense of pride for our profession.

Like all good learning environments, we have learned a ton of lessons from those same attendees and clients alike about what works and what doesn't during this HR transition.  Some industries adopted a business partner model early on, and others like healthcare and education are just now embarking on this journey.  Timing is not important, making HR relevant and impactful is the end goal.

Here are some lessons we have observed and learned over the past year regarding making a successful transition from a transactional HR environment to one that drives business results:

  1. You have to have your HR transactional house in order.  In other words if you can't get transactions right and on time, you lose credibility.  In order to BE strategic and have your voice heard you have to have CREDIBILITY.  
  2. Culture does matter and it does eat strategy for breakfast (or whatever that saying is).  If you have a culture that is paternalistic or doesn't value accountability…fix that first.
  3. Senior leadership support is critical.  Enough said. 
  4. If you are going make the decision to outsource, insource or centralize the transactional work, make sure you communicate the "why this is better" and "market" who is doing what.  Also, make sure follow your own rules.  (#1 still applies no matter who does the work)
  5. Make the hard decisions within HR regarding skill sets.  If different competencies are needed either close those gaps are hire new ones.  Its hard to be strategic and business focused without the needed competencies.  
There are definitely more than just five lessons, but these are the ones we hear the most.  I also believe that HR is embarking on an era of impact and influence.  It's about HR LEADERSHIP.  It's about being a business person first and foremost and an HR expert second.  

Tell us about your journey and what lessons you have learned along the way.  



Wednesday, December 11, 2013

A New Mantra for HR: Leading, Influencing and Impacting the Organization



I was delighted to be asked by Halogen Software to contribute to their TalentSpace blog.  Check my post out and tell me what you think!  It's all about INFLUENCE and IMPACT for HR.  See how you can make a difference next year and many years to come.

Tuesday, December 3, 2013

Designing Performance Management with Line Managers in Mind


Today’s Blog comes from Scott Mondore and Shane Douthitt of SMD. They have the only talent management technology with business analytics and have written two books on connecting HR to actual business results: “Investing in What Matters: Linking Employees to Business Outcomes” and “Business-focused HR: 11 Processes to Drive Results”. Visit them at www.smdhr.com, on LinkedIn and Twitter: @scottmondore @smdhr

Nearly every week a new article comes out about getting rid of performance reviews and starting over because of all kinds of reasons—poor ratings, fairness, poor feedback and managers not putting much effort into them. Those are certainly valid reasons—and every year it is an uphill battle to get managers to complete their ratings on time. As usual there are plenty of new unproven theories (and products!) that actually propose that we do MORE performance reviews and include MORE raters (crowdsourced performance appraisals?!?). This logic seems to say that “we have a bad system, so let’s get more people involved to do more low-impact ratings”. Academics have spun their wheels for years focusing on ‘rating’ training with little impact. But shouldn’t HR look in the mirror and ask ourselves why performance reviews have such a bad image in the first place?  The real issue is that we in HR often focus on the execution and compliance of the process – not the business impact.  Performance management, when done correctly, is simply an extension of the business planning process – and who will argue that we don’t need business planning?  We need to focus more on goal setting, goal alignment, and the impact of the process using analytics.

Think about it from a manager’s (our customer’s!) perspective and this is what they hear from us:
“I need you to have your employees’ reviews entered into the system by November 22nd, so that we have all of them completed on time. Once they are completed you won’t get anything back from us, just check the box. Hopefully you have a good conversation with your employees and you don’t get us into any legal trouble. We’ll see in you in a month to do a calibration meeting where we will change all of your ratings around anyway.”

Not very motivating from a manager’s perspective, is it? If you were a front-line manager, how motivated would you be to put in maximum effort to complete a quality review?
The good news is that performance reviews can be a treasure trove of data—and if analyzed properly can give us tremendous insights on how to drive real business outcomes. If you rate competencies along with goals (which you should), then you can do some analytics to uncover which competencies have the biggest impact on goal performance. You can then create leadership and organizational development programs around those competencies with the biggest business impact. In those talent review/calibration meetings, focus on making talent decisions based on who performs well on the important competencies.

As an HR Business Partner, use the goal ratings data to create development coaching plans for those employees who are struggling or work with managers to create performance improvement plans—or even exit plans.

A question you should ask yourself:

Do you train leaders on how to write strong, measurable goals with specific parameters?
Do you do goal audits?

Here’s an example:
Typical Goal: Hits Sales Quota
Better Goal: Makes 100% or more of sales quota
Even Better Goal: 5 rating: 100% or more of sales quota; 4 rating: 90-99.9% of sales quota; 3 rating: 80-89.9% of sales quota; 2 rating: 70-79.9% of sales quota; 1 rating: below 70% of sales quota
Now let’s revisit our customer’s perspective once we start thinking like business leaders and not box-checkers:

“I need you to have your employees’ reviews entered into the system by November 22nd, so that we have all of them completed on time. Once they are completed I will conduct an analysis that will show us exactly which competencies have the biggest business impact—I will use that information to create development opportunities so that we move the needle on competencies that actually help us make more money. I will also examine the goal ratings and do two things: make recommendations on how we can write better goals (because, as your HR business partner, I have made it my job to understand our business as well as anyone) for employees and how we can get specific under-performers on-track or off of the bus. Finally, I will make sure all compensation decisions are directly tied and aligned with the ratings that you give your people.”
Sound different?

Let’s not fall into the typical HR trap, that if we make something prettier, faster and with minimal thought—it will get our leaders to buy-in more. How about if we tie it directly to business results? Leaders seem to be able to make time for things like that. There is nothing wrong with the classic performance appraisal process (just like there’s nothing wrong with the classic employee survey process)—companies that tie the process to business results and hold people accountable for quality follow-up seem to do just fine. Eliminating performance management is not a solution and would be as irresponsible as the CEO saying, “let’s not have a plan or goals for any parts of our business, let’s just wing it this year”.  Likewise another fad/theoretical approach (like turning performance management into a social media event) will do nothing but erode HR credibility. The process doesn’t need prettier reports, it needs to be more business-focused.

Click here to read about ICC's new Performance Management workshop, titled: Results Driven Performance Management: Driving Employee Performance for Business Results


Tuesday, October 29, 2013

Is HR Really Becoming More Strategic



This week's blog post is written by a dear friend and colleague of mine, Ed Nangle. Ed is President of Corporate Management Consulting, Inc.  Ed has tons of HR wisdom as he has seen many changes in our profession over the years.  

Having been in the human resources profession since the beginning of time (well almost!), for many years I was doubtful if HR would truly ever be viewed by most business leaders as more than a transactional hub and a place to dump all their “people problems”.  Those of you that really know me might even say I was more than doubtful.  The word pessimistic comes to mind.  Even as I saw many companies moving to the “business partner” model, I continued to scratch my head and wonder if we were really making progress.  Listening to my students who were in shared service environments that were mired in service problems (Center of Excellence…really???) contributed to my doubt.  And, although many of them were providing business support to their functional areas, I heard them describing environments that still sounded like silos to me.

I can recall many debates on this topic with my business partner (aka my spouse Charlette).  She continued to tell me that I was working in too narrow of a world…not really understanding that there were HR professionals and companies out there that were truly making progress…putting their human resources departments where they should be…in decision-making roles that really impact the bottom line.  As I look back now, perhaps she was right.  After taking an early-out from corporate life, I spent the last 17 years teaching HR Certification classes.  Although over the years I have met many very talented HR professionals in my classes, many were in the early stages of their careers or even what I would call “wanna be’s”.  I mean no disrespect to all of the hard working individuals I have taught over the years.  This is more of self-criticism…perhaps I spent the last 17 years in my own silo!

Although being a major planner by nature, I’m still amazed at that path my professional life has taken.  What I thought was my last career gig, turned out to be just another stop-over in the journey.  Awhile back I partnered with my long-time friend and colleague, Cathy Missildine of Intellectual Capital Consulting, to deliver an educational program to a client.  The topic was moving their HR department from transactional to strategic. Because we had such a positive response, we decided to take the show on the road.  In my mind the major marketing point was the fact that our workshops provide 12.5 strategic HRCI re-certification credits.  However, I have been pleasantly surprised at the number of people who are attending because they are ready and eager to become business leaders in their organizations and, for them, the credits are just the icing on the cake.  I am even more encouraged by the number of workshop attendees that are working in organizations that truly see the value of HR as an integral partner in meeting strategic business results.  And understanding that only happens through HR leadership that demonstrates the competencies and business acumen to make that happen.

So are we there yet?  We still meet many people in our workshops that voice frustration at their inability to convince senior leadership that there are ways of accomplishing the necessary transactional responsibilities that free up HR leadership to have impact on things that truly produce business results.  But by the end of our couple of days together, many go away with new plans and goals of how to make this happen.  It has been such a rewarding experience to hear people say, “I know what this means now, and I have the tools to start the journey.”  So my answer is YES…I can see us moving in the right direction and it is amazing and exhilarating.  Take some advice from an “old dog”…you can learn new tricks.  Get out of your own silo…and make your own plan to sharpen your competencies and business acumen and get up from the table and make something happen!  

Wednesday, October 16, 2013

From Transactional Data to Strategic Insights



It's been awhile since you have heard from  me.  Can I use the excuse I have been on the road for about  6 weeks?  I did write an article on an airplane last week for HR Examiner.  I think you all will like it.  Think about all the transactional data HR has just lying around in databases, HRIS systems and Talent Management systems that isn't being analyzed.  What an opportunity! Check out the article to see how to go from transactional data to strategic insights.

Tuesday, September 3, 2013

What's Up With Your HR Metrics?

I have been so blocked the last few months regarding my blog.  I used to pump out posts every Monday rain or shine.  This year it's been tough.  I am not sure why I have this writer's block.  Maybe it's because I am going in 19 directions and can't focus.  Maybe it's because my world is about as polar opposite as it was five years ago and I am shell shocked.  Maybe I have run out of things to talk about.

How can that be true?  I am never at a loss for words.

I have been writing this blog focusing around being strategic in HR and HR metrics since 1998.  Maybe I have covered it all.  (not hardly!)

I do know that HR metrics and analytics are now part of the HR conversation.  No matter what you read, HR metrics is an area where HR is spending time, money and resources.  So, I should have plenty to say.

I think I was talking about all this stuff before everyone was ready to listen.

So, now I think I will do the listening.  I do see the change in HR conversations.  I see the change in how HR is approaching metrics.  Change takes time.

So...tell me what is going on in your organizations as it related to HR metrics.  Is there a priority around metrics?  Are you creating a HR dashboard?

What do you still want to know about metrics (this should give me some topics!)

If you still don't want to discuss metrics, how about commenting on my dog Titan...