1

Driving Human Capital Strategy with the HRBP

prepared for i4cp Exchange

August 2015

Michael S. Foss

Amway | Alticor Inc.

Global Human Capital Strategy & Planning

Practice Leader

michael.foss@amway.com

https://www.linkedin.com/in/michaelfoss713

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For more than 50 years, Amway has been a family-owned company based on the belief that we can help people live better lives

Amway is the #1 direct selling company in the world, operating a business model where independent entrepreneurs sell

products directly to consumers.

MORE THAN $47

BILLION USD PAID IN

COMPENSATION AND

BONUSES TO AMWAY

BUSINESS OWNERS

82% OF THE WORLD

HAS ACCESS TO AMWAY;

100+ COUNTRIES

AMWAY

MANUFACTURES AND

DISTRIBUTES HEALTH,

BEAUTY, & HOMECARE

PRODUCTS GLOBALLY

Subset of Alticor’s family of brands offered through Amway and its subsidiaries

Revenue:

$11B USD

Employees:

21,000 globally

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Human capital strategy is the discipline of integrating human capital into business planning

Includes:

ORGANIZATIONAL EFFECTIVENESS – aligning organizational components (e.g., goals &

measures, processes, governance, design) to business strategy execution

WORKFORCE PLANNING – aligning talent management activities in order to have the right

people, in the right place, at the right time, for the right price

HUMAN CAPITAL ANALYTICS – translating information into action – using data, metrics, reports,

and/or quantitative and qualitative analyses in strategy design and delivery

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Approaching human capital strategy consistently allows for scalable impact with the business and within HR

Business Strategy HR Strategy

Op

po

rtu

nit

y

Directly contribute to business strategy execution

through organizational effectiveness and workforce

planning activities

Near-term: Support the business areas in

efficiently managing their operating expenditures

and resources

Long-range: Create a high-performing

organizational environment and a

sustainable pipeline of talent

Prioritize and rationalize HR investment related to

business objectives

Near-term: Prioritize and coordinate HR service

to fit business needs (use what exists)

Long-range: Drive business context into HR

program and strategy design (evolve HR service

delivery)

Ap

pro

ac

h

Develop HR Business

Partner capabilities in

advising business leaders

on human capital strategy

and impact

Utilize human capital

strategy methods and tools

Perform self-diagnostic on HR

program and process

effectiveness

Integrate outputs from human

capital strategy design with the

business areas into HR

strategy planning

Two Applications

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Succeeding with human capital strategy requires distinct roles and responsibilities

Human Capital Methodology & Tools Team (Specialist team)

designs approach, methodologies, and tools for consistency in human capital strategy

HR Business Partner

configures and utilizes methodologies and tools to support the business areas served

Business Leader

apply the human capital strategy into the business plan

The HRBP is key to success when integrating human capital strategy into the business areas … business leaders

do not know what they do not know, and a SME team cannot be deep enough in each business area

Hu

ma

n C

ap

ita

l S

tra

tegy e

xp

ert

ise

Bu

sin

ess A

rea

exp

ert

ise

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Path toward building organizational capability in human capital strategy

PUSH PULL

Specialist team

delivers projects with

the business area

− Low scale

− Low capability

building

− Low ability to

follow through on

execution

Specialist team

partners with HRBP to

deliver projects with

the business area

− Low scale

− High capability

building

− High ability to

follow through on

execution

HRBP utilizes

human capital

methods & tools in

business planning

Specialist team

focuses on broad-

enterprise

initiatives and

conducts analytics

to help identify

opportunities

Business areas

understand the

value of human

capital strategy and

request work to

integrate within

their planning

− High scale

− High capability

building

− High ability to

follow through on

execution

Develop HRBP

capabilities and

competencies

along this

curve

* “Specialist team” refers to the Human Capital Methodology & Tools Team

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What has worked well at Amway (1 of 2)Embedding a Human Capital Methods Team within the HRBP Organization

Embed the Human Capital Methodology &

Tools Team within the business partner

organization

– Shared objectives regarding driving

sustainable business value

– Effective communication between teams

– Methodology & Tools design and skill

development is core expectation (not just an

initiative)

– Human Capital Methods Team is an equal

participant when setting HRBP annual

objectives

Use multiple approaches to facilitate skill

development

– Formal training and workshops (example:

case studies, fictional and non-fictional)

– Embedded Human Capital Methods Team

members on HR Client Service Practice

Teams (ref. next page)

– Partnering between teams on business

initiatives

CHRO

Human Capital

Consulting

Human Capital

Methods Team

COEs &

Departments

HR Global

Regions

HRBPs (aligned to

business units)

HR Market Leaders

(geographical)

Purposeful decision to move “slowly” in order to truly change

the HR Service Delivery model

Low resource investment in order to not grow structural costs

Restructured HRBP and HR Market Leader jobs to not

include generalist activity, freeing capacity for strategic work

Regional

Presidents

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What has worked well at Amway (2 of 2)Instituting HR Client Service Practice Teams

Purpose: deliver HR programs, processes, and initiatives to Amway’s business functions

Building a full HR service delivery team around the business areas, led by the HRBP, is critical to

effective Human Capital Strategy design and execution (application of Human Capital Strategy, pg. 4)

Practice Team structure:

2015 objectives:

Build a human capital plan per business area for realizing Amway’s Strategic Operating Model benefits

Develop HR Client Service Level Agreements that establish standards for what HR delivers to the

business, under which circumstances, and the expected outcomes

HR Partnership

as Needed

Core Practice Team

HRBP

HR GeneralistEmployee

Relations

Talent

Acquisition

Talent

Development

Compensation

Human Capital

Methods Team

Change

ManagementHRIS

Employee

Communications

Other

Functional

Partners

Finance

Other Shared

Services

No reporting relationship to HRBP Based on Clients■ HRBP team ■ Dotted line reporting based on Team assignment

Aligned to serving

Amway’s Global

Functions (“Clients”)

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Human Capital Methods & Tools Team developed four core methodologies to inform building a human capital strategy

Human Capital Strategy Methodologies

Effectiveness& Impact

ServiceDelivery Model

KSAPlanning

WorkforcePlanning

Scenarios SegmentationS

usta

ined P

rocess

DefinedUndefined

Capabili

ties

Headcount

Human Capital Demand

Hu

man

Cap

ital S

up

ply

Determine

investment

opportunities

aligned to

increasing

effectiveness

Prioritize current

resources and

activities

Identify

opportunities for

increased efficiency

and scale

Optimize

organizational

design and

workforce size

Plan for the key

capabilities required

to sustain effective

delivery

Develop

organizational

bench strength and

agility

Reduce FTE-

attributed budget

variance

Align and sequence

talent management

activity to business

plans

Additionally, HRBPs have been equipped with playbooks for:

(1) aligning global HR practitioners on business area priorities, (2) self-service HR reporting and

standard metrics, (3) organizational effectiveness as a continuous focus, and (4) workforce

planning aligned to the financial and business planning cycles

Copyright © 2015 Alticor Inc. All rights reserved.