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Financial Times March 12, 2009

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Financial Times March 12, 2009

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  1. “Their argument is a strong one, and the idea that companies would benefit in the long run from putting more into preparing the right people for the right jobs seems timely. As we look for ways to dig our way out of recession, it is worth remembering that effective and creative people are any company’s best weapon in the war, not for talent, but for survival.” Financial Times March 12, 2009

  2. Strategy, Strategy Execution and Resource Accountability Strategy Strategy Execution Differentiation to create competitive advantage ResourceAllocation ResourceAccountability How grow? Where play? How win? • Financial • Material • Time • Data • Workforce • Budget • Supply chain • Schedules • Information systems • ??? • Value creation: • Customer • Economic

  3. Least Effective in Business SkillsHR staff are more effective in the skills that characterize their most traditional roles Effectiveness of HR Skills People Skills Mean = 42% HR Expertise Mean = 52% Implementing Skills Mean = 35% Business Skills Mean = 29% 70 63% 60% 60 53% 48% 50 44% 44% 43% Skill Effectiveness Mean = 39% 41% 40% 40% 40% 40 Percentage Answering “Effective” or “Very Effective” 28% 27% 27% 30 17% 20 12% 10 0 APPLYING BUSINESS ANALYTICS TAKING A GLOBAL APPROACH Least Effective in Business Skills>08-20-2008

  4. The Workforce and Value Creation HR as a Strategy Player

  5. Strategy and Talent:Evolutionary vs. Revolutionary Change Growth/Change Expectations Growth • Financial • Customer 2003 2004 2005 2006 2007 2008 2009 2010

  6. Evolutionary vs. Revolutionary Change Growth/Change Growth Expectations • Financial • Customer Culture/Talent/Capability 2003 2004 2005 2006 2007 2008 2009 2010

  7. Evolutionary vs. Revolutionary Change Growth/Change Talent Capabilities Growth Expectations STRATEGIC CAPABILITY 1 SC 2 SC 3 SC 4 SC 5 2003 2004 2005 2006 2007 2008 2009 2010

  8. Evolutionary vs. Revolutionary Change Culture Talent Capabilities Growth Growth/Change • Financial Expectations STRATEGIC POSITION 1 • Customer SP 2 SP 3 SP 4 SP 5 2003 2004 2005 2006 2007 2008 2009 2010

  9. Competitive Context Strategy Innovation Speed Strategic Capabilities Structural Cost

  10. Competitive Context Strategy Innovation (How different?) Speed Strategic Capabilities Structural Cost

  11. Competitive Context Strategy Innovation (How different?) Speed Strategic Capabilities Structural Cost (What workforce investments?)

  12. Competitive Context Strategy Innovation (How different?) Speed Strategic Capabilities Structural Cost (What workforce investments?) (What workforce disinvestments?)

  13. Growth Strategy Matrix

  14. Six Month Target Key: Today = Black. Six month target = Red

  15. One Year Target Key: Today = Black. 12 month target = Red

  16. HR’s Biggest Challenges • Thinking like a strategist • Scoring on the scorecard of the business • Understanding that numbers are the language of organizations • Understanding how, where and who creates customer and economic value • Developing strategic data for strategic workforce decision making

  17. Transitioning HR Practices Strategic Talent as a Sustainable Source of Competitive Advantage: Alignment for Value Creation 20

  18. The “Back Home” Challenge— The Charge — • Think like a strategist • Ask the right questions • Develop the right metrics • Use metrics to make strategic workforce decisions: minimize risk and maximize value • Hold leaders accountable for the management of their strategic workforce

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