Agenda Why measure HR effectiveness • In HPCL Context • How does HR Add Value to Business (alignment with business) • How is effectiveness of HR measured
Alignment of HR with Business Why measure HR effectiveness
HPCL Model for alignment with business Future/strategic focus Strategic partner (Management of Strategic Human Resources) Change Agent (Management of Transformation and change) Processes People Administrative expert (Management of Organisation infrastructure) Employee champion (Management of Employee contribution) Day-to-day operational focus The Dave Ulrich Model
HR as Change Agent Future/strategic focus Change Agent (Management of Transformation and change) People Focus
Project ‘ACE’ as a Change Initiative • Project ‘ACE’ – Achieving Continuous Excellence ( An Organizational Transformation Initiative) • A comprehensive exercise of co-creating a vision and cascading it across all levels (based on principles of Learning Organization propounded by Peter Senge) • Series of ACE (visioning) workshops conducted starting from Top Management down to Regional levels. • Learning Organization workshops being conducted across all the levels including staff (introduction to five disciplines and its application)
Project ‘ACE’ as a Change Initiative • Project ‘ACE’ – Achieving Continuous Excellence ( An Organizational Transformation Initiative) • Leadership Workshops • People involvement in Strategy • Involvement of front line officers witnessing the ‘moment of truth’ in the strategizing process. • Strategies formulated for Retail and LPG SBU’s and HR with the involvement of over 500 front line officers.
HR as Strategic Partner Future/strategic focus Strategic partner (Management of Strategic Human Resources) Processes Focus
Balanced Scorecard as a Strategic Initiative • Strategic tool for translating vision into clearly articulated strategy and cascading the same to different SBU’s and levels through scorecards. Improved Profitability Financial Satisfied Customer Customer CURRENT REALITY Internal Processes Customer Centric Processes Learning and Growth Improved People Competencies
Why measure HR effectiveness Competency Mapping and Development as Strategic Initiative • A Strategic process to build people capabilities in line with international benchmarks to meet future business challenges. • Competency Frameworks developed in line with international standards • Behavioral Competency Framework for all levels • Technical Competency Framework for all job families • Development Centers for assessing individuals against competency profile for the position. • Trained and Certified Internal Assessors
Behavioral Competency Framework LEADERSHIP FRAME I Creating Customer Delight 1 H Leading Change and Creativity 2 Building Collaborative Partnerships G 3 Promoting Synergistic Teamwork 4 F Demonstrating Business Savvy and Decisiveness 5 E Driving Results and Excellence 6 GRADES AT HPCL D Building Global and Strategic Perspective 7 INDIVIDUAL CONTRIBUTOR FRAME C Dynamic Customer Focus Enduring Commitment and Initiative 1 3 B Active Learning and Agility Drive for Excellence 4 2 A Cooperative Teamwork 5
Competency Based Training TRAINING NEED IDENTIFICATION Individual Development Plans (competency gaps) As spelt out by SBU’s in line with business requirements Behavioral Technical Concurrently address Behavioral and Technical Competencies Weightage to Behavioral and Technical Competencies Managing Leading
Six Sigma as a Strategic Initiative • A Strategic initiative to review the critical business processes and initiate continual improvements to the same basis scientific methodology. • Critical Business / Technical Processes identified for improvements. • Six Sigma Projects were selected to address these critical processes in Refineries / LPG Plants / Terminals. • General Electric Experts are mentors for all the projects to monitor progress till completion.
HR as Administrative Expert Administrative expert (Management of Organisation infrastructure) Processes Focus Day-to-day operational focus
HR as Administrative Experts - Initiatives • Leveraging Information Technology • Enterprise Resource Planning (ERP) leveraged for prompt employee service. • Leveraging technology to provide access to employee information through intranet. • Finger touch Kiosks at major locations to help non-management employees access their personal information. • Leveraging IT for creating a Learning Organization • Experience Sharing enabled through intranet. • Knowledge database created on different portals on intranet.
HR as Employee Champion Employee champion (Management of Employee contribution) People Focus Day-to-day operational focus
HR as Employee Champion - Initiatives • DGM’s as Mentors to different regions • Role of facilitating effective performance reviews and feedback. • Act as a management representative to communicate management philosophy, priorities and initiatives to employees at large. • Highlight issues of concern at regions to the management. • 360 Degree Multi-rater Feedback System • To provide officers with an all round feedback from various individuals interacting with them , giving insights into their managerial/leadership behavior displayed at workplace
Project Darpan - Gauging Employee Engagement • Employee Survey to understand the dimensions of employee engagement that drive business outcomes • Annual Employee Survey across all locations of the Corporation in partnership with The Gallup Organization .
Measuring HR effectiveness • Investment in HR processes and initiatives need to culminate into business results, and therefore the need to measure HR effectiveness • Meets demands for external accountability ( CEO, Business Heads ) • Establishes clear, significant mission and goals • Fosters strong sense of internal accountability
Metric – A basic definition A quantifiable measure (not the measurement itself) made over time, which communicates vital information about the quality of a process, activity, or resource. Can be subjective, relative or absolute
Characteristics of a good metric What gets measured is what gets done • Aligned with Business • Actionable and Predictive • Consistent • Simple, understandable, logical and repeatable • Unambiguously defined • Capable of tracked over time • Capable of comparison (external benchmarks) • MOST IMPORTANTLY – It should drive appropriate action
Selecting the ‘RIGHT METRIC’ Why measure HR effectiveness • Selecting the right metric is the key to success (A wrong metric can destroy value in medium term) • Common Mistakes in design and use of metric include: • Metrics for the sake of metrics (not aligned) • Too many metrics (no action) • Metrics not driving the intended action • No record of methodology • No benchmarks
Measuring HR effectiveness at HPCL Why measure HR effectiveness Balanced Scorecard Methodology • HR Scorecard linked to Corporate Scorecard
Developing HR Scorecard – The process Why measure HR effectiveness • Define Business Strategy (Corporate Scorecard) • Outline Company’s Value Chain (Activities companies undertake to create value to Customers) • Identify strategically required organizational outcomes • Identify required employee competencies and Behaviors contd…..
Developing HR Scorecard – The process Why measure HR effectiveness • Identify strategically relevant HR Systems, policies and initiatives. • Design HR Scorecard Measurement System • Periodically evaluate the measurement system • Periodically review the way HR matrices are reviewed
THE HRD SCORECARD HPHR
Value Creation Example - HRD Financial Management Value Add Customer Competent Management Employees Internal/business process Competency Development Processes Learning and growth Quality of HR Talent (to design appropriate competency development initiatives
Value Creation Example - IR Reduce incidents of and downtime due to labour disputes Financial Customer Constructive employee unions and association Proactive union management Internal/business process Learning and growth Strategic Thinking (to anticipate implications of present actions and take proactive steps)
Payoff’s of measuring HR effectiveness Why measure HR effectiveness • Show contributions of selected HR projects • Earn respect of senior management • Gain the confidence of clients • Improve support for human resources • Enhance HR processes • Identify processes for mid term corrections • Identify successful HR projects • Forecast HR project success
Finally , create a Value System for HR Why measure HR effectiveness Values co-created and adopted by HPHR Team • Respect the individual • Honor your commitments • Work in Teams
Why measure HR effectiveness If we’re not keeping score, we’re just practicing. Vince Lombardi 20th century football coach