HR Strategy, Second Edition: Creating business strategy with human capital

228 Pages·2009·1.92 MB·english

by  Paul Kearns

HR Strategy
HR Strategy
(2nd Edition)
Creating Business Strategy
with Human Capital
Paul Kearns
AMSTERDAM(cid:2)BOSTON(cid:2)HEIDELBERG(cid:2)LONDON(cid:2)NEWYORK(cid:2)OXFORD
PARIS(cid:2)SANDIEGO(cid:2)SANFRANCISCO(cid:2)SINGAPORE(cid:2)SYDNEY(cid:2)TOKYO
Butterworth-HeinemannisanimprintofElsevier
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Contents
About theAuthor ix
Preface tothe 2ndEdition xi
ExecutiveIntroduction andOverview xv
WhichDoorDoYouWanttoOpen? xv
TheBasicThesisBehindHR-BusinessStrategy xvii
HR-BusinessStrategyChecklist–DoesYoursPasstheTest? xvii
StructureoftheText xviii
1. What is the Purpose of HR-Business Strategy?
PredictingtheFutureforYourPeople 1
HR-BusinessStrategyandtheArtofWar 6
HR-BusinessStrategyisInherentlyComplex 9
SoWhatisaHigh-ValueOrganization? 10
TheToyotaWay 14
LessonsforHR-businessStrategyfromToyota 15
2. HR-Business Strategy is a New, Generic Option
A‘New’,Generic,Strategy 17
ReportingonStrategy 19
WhyMostExistingHR‘Strategies’arenotWorthyofthatName 21
DevelopingYourOwnHR-BusinessStrategy 23
ThreeMissionStatementTests 27
Strategy 28
The‘Best’BusinessesDonotNecessarilyhavetheBestHRStrategies 31
TheHR-BusinessStrategyMatrix 36
3. What Does a Strategic HR-Business Look and Feel Like?
SomeGoldenRulesandPrinciplesofStructural,OrganizationDesign 39
Systems 41
HumanSystemsandOrganizationalCulture 44
AvoidingDefaultMode 47
TheGoldenTriangle–Structure,Process,Roles 53
SomeLessonsinFlexibleOrganisationsfromArup 55
AStrategicHR-BusinessRequiresStrategicLearning 58
TheLearningMaturityScale 62
v
vi Contents
4. So What is the Best Theory on Managing People?
HowDoYouManagePeople? 65
SmokingKills!–LessonsinEmployeeEngagement 66
EmployeeRetentionisaValueProposition 68
AWelcomeLetterfromtheCEO 69
StructuralStaffTurnoverandRetention 71
ASimpleModelofPeopleManagement 72
TestingHRTheories 75
‘Magic’PillsandHR‘Homeopathy’ 76
TheHR‘Catch-22’ 80
TheMythof‘ChangeManagement’ 83
IndividuallyCentredHR-BusinessStrategies 88
5. Are you Mature Enough for HR-Business Strategy?
JustaMinuteBeforeyouRushOff 91
‘‘WhateverPeopleSayHRis–That’sWhatIt’sNot’’ 91
TheThree-BoxPrioritySystem 94
GettingHRStruckOff 96
TheHRMaturityScale 97
TheStagesofTheHRMaturityScale 99
OrganizationalIndicatorsofMaturity 110
CallthatanHR-BusinessStrategy? 115
HR-BusinessStrategyMustEngagetheBusiness,
nottheLatestFad 116
SummaryofKeyLessonsonHRMaturityAnalysis 120
6. Who Will Develop the HR-Business Strategy?
DoCEOsMakeGoodHR-BusinessStrategists? 121
ThePerformanceor‘Vitality’Curve 122
Leaders,Backbone,DeadWoodandtheDangerZone 125
ProfessionalManagementandHR-BusinessStrategists 128
HR-BusinessStrategistsareGreatForecasters 129
Evidence-BasedHumanCapitalManagement(HCM) 130
PuttingaValueonHumanCapital–theHCMRevolution 132
SoWhatExactlyisValue? 135
ThereareNoIntangiblesinHCM 137
TheParadigmShiftinManagingPeople–theFocusonValue 139
7. Strategic Value Measures and Management Tools
PeopleManagementCannotbeReducedtoaFormula 141
WeAllMeasureEverythingWeDo 142
SoftandHardMeasures–WhatistheDifference? 143
TheBalancedBusinessScorecard 145
Contents vii
EFQM–EuropeanQualityAward/ExcellenceModel 147
InvestorsinPeople(IIP) 148
TheMeaningfulMeasuresTest 150
CommonMeasuresareWorthRevisiting 150
InstallingaHuman,PerformanceManagementSystem 154
TestingtheSystem 155
AssessingandReportingonHumanCapitalManagement 156
8. What Factors have the Biggest Influence on the
Value of an HR-Business Strategy?
GreenfieldorBrownfield? 163
DoesSizeMatter? 164
HowMuchInfluenceDoesLocalCultureHave? 164
WhataboutaClearPhilosophyonPayandRewards? 166
HowDoUnionsFitin? 168
HR-BusinessStrategyNeedsStrongPsychologicalContracts 171
IsHR-BusinessStrategyAppropriateWhen
thereisn’ta‘Business’? 175
9. Due Diligence and Reporting on Human Capital
NoSimpleAlgorithmbutaComprehensiveReport 179
HCMAgendas 180
TheCommonSenseTest 181
Evidence-BasedManagement 182
SomeLessonsinEvidence-based-HCMforGSK 183
DamnLiesandStatisticalIntegrity 184
GoodandBadPolitics 187
AWorkingExampleofanHCMReport 189
Notes,NarrativeandInterpretationsoftheHCMReport 189
CastingaCritical,HumanCapitalEyeOverSome
RealOrganizations 199
TheUKNationalHealthService(NHS) 200
Honda 201
UniversitiesandHigherEducation 201
PrivateEquityandHedgeFunds 202
Monopolies 202
StartUps 203
NationalandInternationalHR-BusinessStrategy 203
Index 205
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Author
About the Author
PaulKearnshasworkedintheHRfieldsince1978andestablishedhisstrategic
HR consultancy, PWL, in1991.He hasbeen teaching HR-business strategyat
MBAlevelfor over10 years.
His other books include:
TheValue Motive(Wiley,2007)
Evaluating the ROI from Learning (CIPD, 2005)
Paulcan be contactedat:
Personnel Works Limited
PO Box 109
Bristol
BS9 4DH
UK
Phone [phone]
Web www.paulkearns.co.uk
[email protected]
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