Presentation at HRDF Conference on "HR Professionals: The Challenge of Today & the Vision of...

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Prof Sattar Bawany CEO, Centre for Executive Education (CEE Global) C-Suite Master Executive Coach, EDA Asia Pacific

4 November 2014 Borneo Convention Centre, Kuching, Sarawak

“HR Professionals: The Challenge of Today & the Vision of Tomorrow”

What’s next: The Role and Future of HR

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Every morning in Asia, a tiger wakes up. It knows it must outrun the slowest deer or it will starve to death.

Every morning in Asia, a deer wakes up. It knows it must run faster than the fastest tiger or it will be killed.

It doesn’t matter whether you are a tiger or a deer: when the sun comes up, you’d better be running…..

Are You a Tiger or a Deer?





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About Centre for Executive Education (CEE)

Executive Education

Leadership & High Potential Development

Executive Coaching

Succession Planning

Executive Assessment

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CEE Global is the Exclusive Strategic Partner of Executive Development Associates (EDA), a pioneer in Executive Coaching & Leadership Development since 1982.





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• Centre of Executive Education (CEE Global) is a premier network for established human resource development and consulting firms around the globe which partners with our client to design solutions for leaders at all levels who will navigate the firm through tomorrow's business challenges.

• CEE has established strategic partnerships with Executive Development Associates (EDA), International Professional Managers Association (IPMA) and Cegos Asia Pacific as well as a network of Affiliate Partners across the globe.

• CEE faculty, consultants and executive coaches are highly credentialed with extensive experience to help managers and executives who are being positioned for future career growth.

Who We Are





• CEO of Centre for Executive Education (CEE Global)

• C-Suite Master Executive Coach, EDA Asia Pacific

• Adjunct Faculty of Harvard Business School Corporate Learning

• Adjunct Faculty of Duke Corporate Education (CE)

• Adjunct Professor teaching international business and human resource courses with Paris Graduate School of Management and Curtin Graduate School of Business.

• Over 25 years’ in executive coaching, group facilitation, executive education and senior leadership development and training

• Assumed senior global and regional leadership roles with DBM (Drake Beam & Morin), Mercer Human Resource Consulting, Hay Management Consultants and Forum Corporation

About Your Speaker

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• Revisit HR Role as a Strategic Business Partner

• Understand Today’s Role of HR and its Challenges

• CEOs & Business Leaders’ Perception of the Importance and Effectiveness of HR

• Critical Workplace Trends in next 5-10 years

• How do HR Response to these Challenges?

• What is the Future of HR?

Session Objectives





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It’s Time for a HR Upgrade

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HR as a Strategic Partner “While the term ‘strategic human resource management’ (SHRM) may sound like an

oxymoron to some, many companies recognise that effective HRM is key to their competitiveness. It is widely acknowledged and accepted in business that the sources of sustained competitive advantage lie not only in access to finance or capital, but within the

organisation, in people and processes capable of delivering business strategies such as customer satisfaction or rapid innovation”

Bawany, S. (2004), HR as a Strategic Business Partner in Today's New Knowledge Economy, Human Capital (Singapore Human Resources Institute), March - April 2004.





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Management of

Firm Infrastructure

Processes

Management of

Strategic Human

Resources

Future/Strategic Focus

Management of

Transformation &

Change

Management of Employee

Contribution

Day-to-day/Operational Focus

People

Dave Ulrich’s Model

Source: Ulrich, D. 1997. Human Resource Champions. Harvard Business School Press.





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Today’s HR Role and Challenges in

Managing People and Organisation

• Attracting, Retaining and Developing Mission Critical Talent

• Building High Performance Work Organizations

• Aligning People With The Business

Source: Bawany, S. (2008), Strategic HRM: Aligning HR to Business Strategy, Human Capital, August 2008 Issue





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• “Senior HR Leaders have done a good job working as a Business Partner in recent few years, but going forward they need to couple their HR skills with a much deeper understanding of the business.”

• “HR isn’t communicating mission critical data to the C-suite and that creates a credibility challenge.”

• ‘If I was head of HR, I’d pound the table more. HR issues get ignored in the heat of the battle.”

• “HR leaders can show value to CEOs by focusing on strategies to further cultivate senior talent and to keep the valued leaders the organization has.”

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CEOs – HR Disconnect

Source: CEE Interviews with CEOs Coachees on Perception of HR, October 2014





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CEOs Perception of Importance and

Effectiveness of HR

• 81% of respondents see talent management as a key competitive advantage over the coming years.

• Only 15% see HR as able to provide insightful and predictive workforce analytics in managing talent.

• Just 17% view HR as able to demonstrate measurable value to the business.

Source: Rethinking Human Resources in a Changing World (KPMG, 2012)





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Critical Trends Affecting the Workplace

of the Future & HR Response

• Adapting to a rapidly changing worker profile - Demographic shifts are creating a diverse, multigenerational workforce

• The world is much more global and interdependent

• Technology’s evolving role in redefining work and workforce demand with mobile, social, and cloud computing continue to explode





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The Future of Work





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Future of HR – Strategic Areas of Focus • Lead and Develop:

– accelerate leadership development at all levels;

– build global workforce capabilities;

– re-energize corporate learning by putting employees in charge;

• Attract and Engage:

– develop innovative ways to attract, recruit, and access talent;

– drive passion and engagement in the workforce; use diversity and

inclusion as a business strategy

• Transform and Reinvent:

– create a global HR platform that is robust and flexible enough to adapt

to local needs; reskill HR teams;

– take advantage of cloud-based HR technology; and implement HR

data analytics to achieve business goals

Source: Deloitte Global Human Capital Trends 2014: Engaging the 21st Century Workforce





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The Six Competencies for the Future

of Human Resources

• Strategic Positioner

• Credible Activist

• Capability Builder

• Change Champion

• HR Innovator and Integrator

• Technology Proponent

Source: Ulrich, D., Younger, J., Brockbank, W. & Ulrich, M. (2012). HR from the outside-in: Six competencies for the Future of Human Resources. Boston: McGraw Hill.





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Big Data Dizziness

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Source: https://www.youtube.com/watch?v=rByDmC0SqtM

Video: Role of HR by Jack Welch

"HR is the driving force behind what makes a winning team. We make the argument that the team that fields the best players wins.

HR's involved in making sure we field the best players."




https://www.youtube.com/watch?v=rByDmC0SqtM

https://www.youtube.com/watch?v=rByDmC0SqtM


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Acting as business leaders are different from saying we are business leaders.

As business leaders we set our priorities according to the potential business impact of activities and concentrate our time and energies on the most important.

We need to develop the capabilities required to be effective business leaders and human resource leaders.

In Conclusion: Key to Success

Professionalizing HR with the necessary knowledge, competencies and credible performance through the accreditation of HR practitioners with a model that adopts the best worldwide HR practices and takes into account local needs.





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Survey on Leading the Future

Multigenerational Workforce

For participation of CEE Global’s Survey on Leading and Engaging Gen Y and Z at the Workplace, please visit CEE Homepage at: www.cee-global.com or www.surveymonkey.com/s/genyz







http://www.surveymonkey.com/s/genyz


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CEE Global Masterclass on

Transforming Managers to Leaders

Normal Fees: RM 1,350

HRDF Conference Participants: RM 990





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If you do tomorrow what you did yesterday

Your Future is History……………

If you do tomorrow what we’ve covered today

Your Future is Historic!!!

Final Thoughts…





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Prof Sattar Bawany

CEO, Centre for Executive Education (CEE Global)

C-Suite Master Executive Coach, EDA Asia Pacific

Strategic Advisor & Master Facilitator, IPMA Asia Pacific

Email: [email protected]

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Articles: www.cee-global.com/6/publication

Further Dialogue on Social Media




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Presentation at 2014 HRDF Conference, 4-5 November 2014, Kuching, Sarawak

© 2014 Copyright Centre for Executive Education Pte Ltd – All Rights Reserved – www.cee-global.com 1

4-5 November 2014, Borneo Convention Centre, Kuching, Sarawak

Presentation On


By

Prof Sattar Bawany CEO, Centre for Executive Education (CEE Global) C-Suite Master Executive Coach, EDA Asia Pacific

Strategic Advisor & Master Facilitator, IPMA Asia Pacific

Website: www.cee-global.com

Email: [email protected] LinkedIn: www.linkedin.com/in/ceeglobal Facebook: www.facebook.com/ceeglobal

Articles: www.cee-global.com/6/publication Presentation: www.cee-global.com/7/speaking_engagements




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By Prof Sattar Bawany

Introduction

While the term ‘strategic human resource management’ (SHRM) may sound like an oxymoron to some, many companies recognise that effective HRM is key to their competitiveness. It is widely acknowledged and accepted in business that the sources of sustained competitive advantage lie not only in access to finance or capital, but within the organisation, in people and processes capable of delivering business strategies such as customer satisfaction or rapid innovation (Bawany, 2004).

HR professionals who have the business acumen to contribute to business strategy at the highest organizational levels are leading the shift in the HR profession from administrators to strategic advisors. Those HR professionals who understand the language of business, who speak in financial terms and who express the value of their work in relation to its impact on the bottom line make HR a compelling component in strategy discussions. A CEO quickly connects with the head of HR who can present an investment and return, rather than an expense view of the function.

All too often, human resource (HR) organizations transform themselves in a strategic vacuum, responding to the business’ day-to-day operating needs without a clear view of the big picture. To be effective, HR needs to align its improvement efforts with the company’s business strategy. This requires an HR transformation strategy that is realistic and executable – with accurate plans, schedules, resource requirements and estimated benefits that the company can rely on.

The nature of the linkage between human resource management and business strategy has attracted considerable interest over a long period (Purcell, 1989; Schuler and Jackson, 1997; Gratton, 1999). In this article we seek to move the debate forward by further developing the nature of HRM's strategic role and contribution in managing the organisation of today and tomorrow.

While the term “Strategic Human Resource Management (HRM)” may sound like an oxymoron

to some, many companies recognize that effective HRM is a key to their competitiveness. It is

widely acknowledged and accepted in business that the sources of sustained competitive

advantage lie not only in access to finance or capital, but within the organisation, in people and

processes capable of delivering business strategies such as customer satisfaction or rapid

innovation.




There is a considerable debate about what 'Strategic Human Resource Management' (SHRM) actually means. There are many definitions, including:

'A human resource system that is tailored to the demands of the business strategy' (Miles and Snow 1984).

'The pattern of planned human resource activities intended to enable an organization to achieve its goals' (Wright and McMahan 1992).

Such definitions range from a portrayal of SHRM as a 'reactive' management field where human resource management is a tool with which to implement strategy, to a more proactive function in which HR activities can actually create and shape the business strategy.

The range of activities and themes encompassed by SHRM can be seen, for example, in Mabey et al (1998), which looks at the subject from four perspectives:

1. The social and economic context of SHRM - including the internal (corporate) and external environments that influence the development and implementation of HR strategies.

2. The relationship between SHRM and business performance, emphasizing the measurement of performance.

3. Management style and the development of new forms of organization.

4. The relationship between SHRM and the development of organizational capability, including knowledge management.

HR Role as a Strategic Business Partner Revisited

Strategy defines what we are going to do, why we are doing it, and how we will know we are done. What business will we be in? Who are our customers and what are their needs? How will we reach them? What products and services will we offer? How will we compete – by low price or by differentiating in other ways? How will we create value for customers, investors, and employees?

There are many faces of business strategy, ranging from very formal and explicit planning processes to informal, implicit, shared understanding of future direction and priorities. Strategy may emphasize external competitive analysis and positioning or, as is the current emphasis in many companies, the development and leveraging of internal resources and capabilities to gain and sustain a competitive advantage. Strategy may be very aggressive, calling for radical business repositioning and transformation, or it may be relatively passive, adapting to changes in the business environment as they unfold.

Most discussions of our strategic partner role focus on human resource implications of business strategy – aligning people with strategies to enable strategy implementation. We recruit, develop, and retain required talent. We build organizational capabilities. We communicate performance expectations and goals, and we provide rewards for results achieved. We adapt human resource practices to support new business priorities and to facilitate strategic change.

Business strategy charts a course of action designed to achieve an advantageous and sustainable market position (market share, margin/profitability, product or technical leadership, etc.). The strategic management process includes strategic analysis, strategy formulation, and strategy implementation. Great human resource strategies are developed within the context of this ongoing strategic management process. Elements of this integration are shown in Table 1.




TABLE 1: BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY Source: Bawany, S. (2008), Strategic HRM: Aligning HR to Business Strategy, Human Capital, August 2008 Issue

Strategic analysis:

Establish the strategic context

Strategy formulation:

Define a plan to achieve an

advantageous market position

Strategy implementation:

Execute the plan

Business

Strategy Assess driving forces shaping the future of

the industry (technology, competitors, markets, customer requirements, etc.)

Determine key success factors

Assess business and organizational capabilities (strengths and weaknesses)

Define strategic issues

Determine future market positioning and competitive advantage

Formulate mission, vision, values (a shared mindset)

Define the required culture, management philosophy, and business practices

Set business objectives and priorities

Develop action plans (steps, timing, responsibility, resources required, and performance measures)

Allocate resources

Develop required organizational capabilities (structure, systems, processes, talent, etc.)

Manage performance (establish performance expectations and accountability for results, manage performance, evaluate and reward performance)

Human

Resource

Strategy

Assess people and organizational aspects/implications of the strategic context

Assess people-related organizational capabilities (current situation, strengths and weaknesses)

Determine future people and organizational requirements (preferred future state)

Determine people-related business issues (gaps between current and future state)

Develop people-related strategies to address these issues (objectives, priorities, action plans, and measures)

Enable effective change (communication, involvement, influence, initiatives, etc.)

Align core people management processes to enable strategy implementation

Align the human resource function with changing requirements (organization, roles, capabilities, systems, practices, etc.)

Establish and implement a business plan for the HR function itself (objectives, resources, priorities, measures, etc.)




Today’s Role of HR and Challenges

People and organization issues are related directly to specific strategic business issues and, in turn, derived from forces driving the business and critical business success factors. Table 2 highlights issues currently being addressed through human resource strategies by leading companies:

TABLE 2: HR ROLE IN MANAGING PEOPLE AND ORGANIZATION ISSUES

ATTRACTING, RETAINING, AND DEVELOPING CRITICAL TALENT

Recruiting and selecting scarce talent with critical skills

Developing the required capabilities in the current talent

Building loyalty with less company commitment (e.g., job security) and employee commitment

Providing the necessary “value proposition” for critical talent groups

Providing attention to the “whole person” (e.g., desired work environment, development, work-family balance)

Addressing the needs/interests of multigenerational workforce

BUILDING HIGH PERFORMANCE WORK ORGANIZATIONS

Building commitment to creating a high performance culture.

Establishing accountability for achieving business results (e.g., balanced scorecard)

Emphasizing the business case that provides a line of sight to business results

Building customer intimacy and an obsession on customer satisfaction

Communicating the direction the business is taking and what it means to each person

Promoting teamwork and collaboration across organizational units and regions

Enabling individuals to update their expertise and skills, be responsible for learning

Accelerating speed/cycles, innovation and creativity

Aligning reward systems with changing priorities (e.g., incentives, profit sharing, stock ownership, team-based compensation)

Building values and principles which will sustain long-term growth of company

ALIGNING PEOPLE WITH THE BUSINESS

Involving employees in the business planning process (top down, bottom up iteration)

Building a business mindset, addressing how employees may contribute and building commitment through understanding

Establishing cross-business activities (e.g., cross-functional teams, assignments, communications)

Building more effective two-way, personal communications with managers, team leaders, or coaches

Evolving from quality management and re-engineering to balanced change integration focusing on growth, market share, new markets, and customer retention




In a published KPMG Research, Rethinking Human Resources in a Changing

World (KPMG, 2012) there seems to be a continued vast gulf between the perceived

importance and the perceived effectiveness of HR today.

Whether deserved or not, this stigma is clearly evident in the survey. For example:

81% of respondents see talent management as a key competitive advantage over the coming

three years.

Only 15% see HR as able to provide insightful and predictive workforce analytics.

Just 17% view HR as able to demonstrate measurable value to the business.

Traditionally, HR departments often had limited involvement in the company’s business affairs and

goals. HR leaders were often only concerned with making staffing plans, providing specific job

training programs, or running annual performance appraisal programs (the results of which were

sometimes put in the files, never to be used). They were poorly informed on strategic and

business issues and therefore focused on the short-term--perhaps day-to-day--needs of human

resources.

With the growing importance of human resources to the success of the business, HR managers

and their departments have become more involved in the business. They know the needs of the

business and are helping address those needs. One consequence of this role is an increased

involvement in the longer-term, strategic directions of the organization. A second consequence is

a new emphasis on long-term activities in addition to the more typical medium- and short-term

activities.

HR Challenge # 1: Adapting to a rapidly changing worker profile - Demographic shifts are

creating a diverse, multigenerational workforce

An ageing population is very apparent throughout the developed world, raising concerns that the remaining working population will not be able to bear the strain of increased expenditure on elderly care and pensions.

Governments have responded to this reality through immigration and by raising the pensionable or retirement age. Meanwhile, much of the developing world is confronting a very different demographic challenge, and is seeking to devise the appropriate education systems to prepare an overwhelmingly young population for the workplace.

As the world’s population grows, the global workforce is getting younger, older, and more

urbanized. Millennials are entering the workforce in greater numbers and reshaping the talent

markets with new expectations. They are projected to make up 75 percent of the global workforce

by 2025, and they are letting us know that they are ready to take the lead soon. But as new

research shows, Millennials or Gen Yers want to be creative. They want to run their own

businesses. They want accelerated career growth (Bersin, 2013).




HR Challenge # 2: The world is much more global and interdependent

In 2013, the developing countries contributed 50 percent of the world’s GDP. This is expected to

grow to 55 percent by 2018, a significant increase in business opportunity centering on these

newer economies. Trends in leadership, talent acquisition, capability development, analytics, and

HR transformation are all impacted by globalization. Companies that learn to leverage global talent

markets while localizing their HR strategies will be poised for strong performance.

HR Challenge # 3: Technology’s evolving role in redefining work and workforce demand

with mobile, social, and cloud computing continue to explode

All this technology has transformed the world of recruiting, the world of education and training, the

world of analytics, and even the way we work. Today we are online 24/7 and relentlessly flooded

with information, messages, and communications. Not only has technology become a critical and

pivotal part of human resources, but we have also identified a new human capital issue discussed

in this report: the overwhelmed employee. Organizations face an imperative to find ways to absorb

more technology while simultaneously making it simple.

The rapid growth of technology is opening up new frontiers and undermining old ways of working. It

has created new jobs, while eliminating others. It has enabled previously isolated countries to

participate in global business, and allowed work to be more easily distributed and performed far

from its original source. An increasing number of jobs that rely on human interaction are likely to be

conducted virtually, either because the individual worker volunteers to work in that way, or because

the employer makes telework compulsory to save on the costs of premises.

Finally, technology has changed the nature of collaboration, expertise sharing, and the skills one

needs to succeed. Collaborative technologies continue to make it possible for teams to work in

remote locations across the world, easily accessing experts within and outside the organization.

The skills we need today and in the future are dramatically different than what they were only five

years ago.

The Future of HR

These changes in the workforce and workplace are significant, disruptive, and here today. How can

human capital strategies power companies to thrive in this era of rapid change?

Table 3 outlines the specific recommendations HR could implement to address these

organisational in their role as Strategic Business Partner which are summarise below:

Lead and develop: The need to broaden, deepen, and accelerate leadership development at all levels; build global workforce capabilities; re-energize corporate learning by putting employees in charge; and fix performance management

Attract and engage: The need to develop innovative ways to attract, source, recruit, and access talent; drive passion and engagement in the workforce; use diversity and inclusion as a business strategy; and find ways to help the overwhelmed employee deal with the flood of information and distractions in the workplace

Transform and reinvent: The need to create a global HR platform that is robust and flexible enough to adapt to local needs; reskill HR teams; take advantage of cloud-based HR technology; and implement HR data analytics to achieve business goals




TABLE 3: THE FUTURE OF HR: 3 STRATEGIC AREAS OF FOCUS

Source: Deloitte Global Human Capital Trends 2014: Engaging the 21st Century Workforce

Lead and develop

Attract and engage Transform and reinvent

Leaders at all levels: Close the gap between hype and readiness

Corporate learning redefined: Prepare for a revolution

Performance management is broken: Replace “rank and yank” with coaching

and development

The quest for workforce capability: Create a global skills supply chain

Talent acquisition revisited: Deploy new approaches for the new battlefield

Beyond retention: Build passion and Purpose

From diversity to inclusion: Move from compliance to diversity as a business strategy

The overwhelmed employee: Simplify the work environment

The reskilled HR team: Transform HR professionals into skilled business consultants

Talent analytics in practice: Go from talking to delivering on big data

Race to the cloud: Integrate talent, HR, and business technologies

The global and local HR function: Balance scale and agility




In 2013, the SHRM Foundation launched a new strategic-thought-leadership initiative in

collaboration with The Economist Intelligence Unit, to identify and analyze critical trends likely to

affect the workplace in the next 5-10 years.

The following three critical themes emerged from the Report:

1. Evolution of work and the worker. The globalization of business, changing demographics and changing patterns of mobility will continue to change the nature of work and the worker.

2. Engaging and integrating a global workforce. Cultural integration and clashes/unrest will

continue to grow globally, at both societal and corporate levels.

3. Use of talent analytics for competitive advantage. Talent shortages will continue to grow globally, requiring HR to become the provider of human-capital analytics for input to strategic business decision making.

Conclusion

The Human Resources function currently faces pressing, interconnected challenges. The challenges for HR range from adjusting to the demands of a globalized workforce, through negotiating cost constraints, to taking advantage of new technologies. At the same time, HR’s potential strategic value is under-appreciated. In order to emerge stronger from its current struggles - stronger and better able to add value - executives must recognize and implement three concurrent changes to the HR function as we have discussed earlier.

Acting as business leaders are different from saying we are business leaders. Studies have found that HR leaders are not fulfilling the role, even while they acknowledge it is important. As business leaders we set our priorities according to the potential business impact of activities and concentrate our time and energies on the most important.

We need to develop the capabilities required to be effective business leaders and human resource leaders. As human resource and business leaders, we strive for superb execution of strategies that will give our business an advantage by matching internal capabilities with external market opportunities far more effectively than our competitors. We are obsessed with doing the right things, achieving results, and thereby help achieve targeted business objectives. To become effective in this role, we must create opportunities to lead, find the time to lead, and develop our capabilities to lead.




BIBLIOGRAPHY

Bawany, S. (2004), HR as a Strategic Business Partner in Today's New Knowledge Economy, Human Capital (Singapore Human Resources Institute), March - April 2004.

Bawany, S. (2008), Strategic HRM: Aligning HR to Business Strategy, Human Capital, August 2008 Issue

Bersin, J. (2013), Millennials will soon rule the world: But how will they lead? Forbes, 12 September 2013

Deloitte Consulting LLP and Bersin by Deloitte (2014), Global Human Capital Trends 2014: Engaging the 21st-Century Workforce

Gratton, L. (1999), Human Resource Strategy (London: Oxford University Press).

KPMG International (2012), Rethinking Human Resources in a Changing World

Mabey, C., Salaman, G. and Storey, J. (eds.) (1998) Strategic Human Resource Management: A Reader The Open University/Sage.

Miles, R. E., and Snow, C.C. (1984) 'Designing strategic human resource systems'. Organizational Dynamics (Summer): 36-52.

Purcell, J (1989), "The Impact of Corporate Strategy on Human Resource Management", in Storey, J (ed) New Perspectives on Human Resource Management (London: Routledge).

Purcell, J (1995),"'Corporate Strategy and the Link with Human Resource Management', in Storey, J (ed) Human Resource Management: A Critical Text (London: Routledge).

Schuler, R.S. and Jackson, S.E. (August 1997), "Linking Competitive Strategies with Human Resource Management Practices," Academy of Management Executive: 207-219.

Wright, P. M., and McMahan, G.C. (1992) 'Theoretical perspectives for strategic human resource management'. Journal of Management 18: 295-320.




APPENDIX I: SPEAKER’S PROFILE – PROF SATTAR BAWANY

Professor Sattar Bawany is the Chief Executive Officer of the Centre for Executive

Education (CEE Global).

Prof Bawany is also concurrently the Strategic Advisor & Member of International

Professional Managers Association (IPMA) Board of Trustees and Governing

Council.

He is also the Managing Director as well as C-Suite Master Executive Coach &

Facilitator with Executive Development Associates (EDA) Asia Pacific.

Prof Bawany is an Adjunct Faculty of Harvard Business School’s Corporate Learning as well as Duke

University’s Corporate Education (Duke CE). He is also a member of Frontier Strategy Group’s Expert

Advisory Network (EAN) for Human Capital and Talent Management issues in Asia Pacific advising CEOs

and CHROs of global and regional organizations.

He has over 25 years’ international business management experience, including 15 years in executive

coaching, group facilitation, and leadership development and training with global management consulting

firms. In addition to his business and consulting career, Prof Bawany has over 10 years of concurrent

academic experience as an Adjunct Professor teaching senior executives international business strategies

and human resource courses at various leading universities. He is currently the Adjunct Professor of

Strategy with the Paris Graduate School of Management (PGSM).

He is a Key Note Speaker at international and regional Conferences, Workshops and Seminars on the

following themes: Talent Management; Executive Leadership Development, Employee Engagement and

Managing across Generational Gap, Strategic Human Resource Management, and Talent Management &

Succession Planning. He is an accomplished Author with a Chapter on “Maximizing the Potential of Future

Leader” in the Book “Coaching in Asia the First Decade”. He has published extensively on topics such as

Talent Management, Leadership Effectiveness, Strategic HR/OD, Career Management and Executive

Coaching in the “The Straits’ Times”, “Singapore Business Review”, “Today’s Manager” and “Human Capital”

magazine. He has also appeared regularly on MediaCorp’s Radio’s 93.8FM Live as a studio guest.

He holds an Executive MBA and a Bachelor in Business Administration (Marketing). His Doctoral Research

is on ‘The Impact of Executive Coaching on the Personal & Professional Development of Leaders”.

Prof Bawany is a Fellow of International Professional Managers Association (IPMA) and The Chartered

Institute of Marketing (CIM). He is a Professional Member of the Society of Human Resource Management

(SHRM) and the Chartered Institute of Personnel and Development (CIPD). He is also a Practicing Member

of the International Coaching Federation (ICF) and International Association of Coaching (IAC).

He is very well regarded by his clients for his practical "how to" approach and for his ability to communicate

with his audiences and to make workplace learning a fun and pleasurable experience. Married with 2

children, he believes strongly in work-life balance and is highly dedicated and committed to achieving his

goals.


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http://www.executivedevelopment.com/our-team/sattar-bawany/

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http://www.cee-global.com/download/Coaching-in-Asia-Maximising-the-Potential-of-Future-Leaders-Sept-2010.pdf

http://www.cee-global.com/download/Coaching-in-Asia-Maximising-the-Potential-of-Future-Leaders-Sept-2010.pdf




APPENDIX II: CORPORATE PROFILE OF CEE AND EDA

About Centre for Executive Education (CEE)

The Centre of Executive Education (CEE) is a premier network for

established human resource development and consulting firms

around the globe which partners with our client to design solutions for

leaders at all levels who will navigate the firm through tomorrow's

business challenges. CEE has established strategic partnerships with

International Professional Managers Association (IPMA) and Executive Development Associates (EDA) as

well as a network of Affiliate Partners across the globe.

CEE faculty, consultants and executive coaches headed by our founder & CEO, Prof Sattar Bawany, are

highly credentialed with extensive experience to help managers and executives who are being positioned for

future career growth. They are authors, leaders, and each possesses an enormous passion for the success

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66 humanCapital I AUGUST 2008

MANAGEMENT

While the term ‘strategic human resource

management’ (SHRM) may sound like an oxymoron

to some, many companies recognise that effective

HRM is key to their competitiveness. It is widely

acknowledged and accepted in business that the sources of sustained

competitive advantage lie not only in access to finance or capital, but

within the organisation, in people and processes capable of delivering

business strategies such as customer satisfaction or rapid innovation.

There is a considerable debate about what 'Strategic Human

Resource Management' (SHRM) actually means. There are many

definitions, including:

'A human resource system that is tailored to the demands of the business strategy' (Miles and Snow 1984).

'The pattern of planned human resource activities intended to enable an organisation to achieve its goals' (Wright and McMahan 1992).

Such definitions range from a portrayal of SHRM as a 'reactive'

management field where human resource management is a tool

with which to implement strategy, to a more proactive function

in which HR activities can actually create and shape the business

strategy (Sanz-Valle et al, 1998).

The range of activities and themes encompassed by SHRM can

be seen from four perspectives:

1. The social and economic context of SHRM - including the

internal (corporate) and external environments that influence

the development and implementation of HR strategies.

2. The relationship between SHRM and business performance,

emphasising the measurement of performance.

3. Management style and the development of new forms of

organisation.

4. The relationship between SHRM and the development of

organisational capability, including knowledge management.

Wright and Snell's (1998) model of SHRM aims to achieve both

fit and flexibility. They emphasise a distinction between HRM

practices, skills and behaviour in their relation to strategy on the

one hand, and the issue of tight and loose coupling of HR practices

and strategy on the other.

HR as a stRategic Business PaRtneRHuman resources is described by Dave Ulrich as four key roles.

Management of strategic human resources, management of

firm infrastructure, management of employee contribution and

management of transformation and change. It is within this last

role that business partners have a significant role to play (Ulrich,

1996). See Figure 1 for the paradigm shift of the new roles of HR in

building and sustaining a competitive organisation.

In his book Human Resource Champions Dave Ulrich starts with

the question ‘Should we do away with HR?’. In the opening of the

book he suggests that we may have to if we cannot move the focus

of HR from solely what it does (for example, recruiting, training or

payroll administration) to how it delivers. This is a vital proposition.

Ulrich proposes that HR should select four key areas of activity

that, when executed well as a whole, will support HR’s position and

ability to deliver whatever the challenges that may come along.

He maps out new roles for HR. Each role combines to focus

on delivering improvement within the function and within the

business (Table 1).

FIGURE 1: THE NEW ROLES OF HR

Source: Dave Ulrich, Human Resource Champions, Harvard Business School Press, 1996.

Management of transformation – renewing

the organisation

Management of strategic human resources – aligning

HR and business strategy by organisational diagnosis

HR Roles in Building a comPetitive oRganisation

strategic Focus

Management of employee contribution – listening and

responding

Management of infrastructure – processes

to deliver services

Processes People

operational Focus

Strategic HRM: Aligning HR to Business Strategy

moving FRom ‘Back oFFice’ to ‘FRont oFFice’ By Prof Sattar Bawany

HR Business PaRtneRing – a model oF cHangeUlrich’s model has met with almost universal acceptance amongst

the HR profession. It offers an inspirational path combined with

the comfort of a rather prescriptive and perfunctory description of

how to achieve the model. However, Ulrich offers little in the way

of empirical evidence to support his model and there is very little in

the way of practical suggestions on how to implement the changes

successfully.

TABLE 1: EVOLUTION OF HR ROLES

Source: Dave Ulrich, Human Resource Champions, Harvard Business School Press, 1996.

activities as the company launched the Mach 3 Razor. This

process of linking HR to the broader, longer-term needs of firms

and the environment is the essence of strategic human resource

management (Schuler, Jackson and Storey, 2001).

Business strategy charts a course of action designed to achieve

an advantageous and sustainable market position (market share,

margin/profitability, product or technical leadership, etc.). The

strategic management process includes strategic analysis, strategy

formulation, and strategy implementation. Great human resource

strategies are developed within the context of this ongoing

strategic management process. Elements of this integration are

shown in Table 2.

But there is more – we have the opportunity to participate

directly in the formulation of strategy. When we feel strategic,

we are acting as business leaders as well as human resource

leaders, helping to shape strategy as well as implement it. We can

influence strategic thinking through our personal participation

and inputs. We can also help ensure that the planning process is

appropriate for our business and that it is conducted effectively,

with all stakeholders effectively engaged.

aligning HR to Business stRategyWe also play a role in determining business strategy. We help create

a vision – a picture of the future to guide decisions and actions. We

help debate alternative strategies and weigh their merits – and the

difficulty of execution. We challenge whether proposed strategies

will result in a competitive advantage, and how it may be sustained

in the face of competition and changing conditions. We help define

objectives, set priorities, and establish action plans that will move the

business forward.

Overall corporate strategies vary widely, but most include a

combination of specific business strategies:

• Diversification

• Mergers,acquisitions,andalliances

• Newproductdevelopment

• Marketpenetrationanddevelopment

• Productandserviceinnovation

• Businessrestructuringandcostreduction

Each strategy may involve emphasis on global opportunities,

e-business and Internet applications, technology innovations,

or a focus on the customer as key elements. We ask whether the

right strategies are being adopted and whether they have the

right elements. As HR leaders we specifically consider what will be

required to execute them.

People and organisation issues are related directly to specific

strategic business issues and, in turn, derived from forces driving

the business and critical business success factors. Table 3 highlights

issues currently being addressed through human resource

strategies by leading companies:

mid-1990s

Employee Champion

Administrative Expert

Change Agent

Strategic Partner

mid-2000s

Employee Advocate (EA), Human Capital (HC) Developer

Functional Expert

Strategic Partner

Strategic Partner

Leader

evolution of thinking

Employees are increasingly critical to the success of organisations. EA focuses on today’s employee; HC developer focuses on how employees prepare for the future.

HR practices are central to HR value. Some HR practices are delivered through administrative efficiency (such as technology), and others through policies, menus, and interventions, expanding the “functional expert” role.

Being a strategic partner has multiple dimensions: business expert, change agent, knowledge manager and consultant. Being a change agent represents only part of the strategic partner role.

As above.

The sum of the first four roles equals leadership, but being an HR leader also has implications for leading the HR function, collaborating with other functions, ensuring corporate governance and monitoring the HR community.

At the strategic (long-term) level, HR departments and their

professionals get involved in broader decisions–those that provide

overall direction and vision for the organisation. Being a strategic

partner means understanding the external environment, the

business direction of the company, including what the product

is, what it's capable of doing, who the typical customers are and

how the company is positioned competitively in the marketplace.

This is why Tom Webber at Gillette was so effective in his HR

68 humanCapital I AUGUST 2008

TABLE 2: BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY

Source: Sattar Bawany, ‘HR as a Strategic Business Partner in Today's New Knowledge Economy’, "Human Capital " (Singapore Human Resources Institute), March / April 2004.

TABLE 3: PEOPLE AND ORGANISATION ISSUES ADDRESSED BY LEADING COMPANIES

Source: Sattar Bawany, ‘HR as a Strategic Business Partner in Today's New Knowledge Economy’, "Human Capital " (Singapore Human Resources Institute), March / April 2004.

Putting PeoPle into stRategyIn great measure, leading companies succeed because they

develop and execute strategies superbly. They determine the

talent and the management practices that are required to succeed

and they successfully implement radical changes. Their capacity

for profitable growth lies in their ability to identify (early) and

address (effectively) the people-related business issues inherent in

specific business actions. Business leaders (including HR leaders)

identify, assess, and address the opportunities and challenges of

executing change. Some great strategies are simply not executed;

other strategies were ill conceived because the enterprise lacked

the capabilities required for execution. For example, a defense

contractor sought to expand its commercial business, but found it

was ill-equipped to develop viable products, engage in marketing,

build new customer relationships, and establish the price-profit

mindset required; even worse, management distraction puts

defense contracts at risk.

Although current strategic thinking stresses that an

organisation’s capabilities are a primary source of competitive

advantage, executives often do not effectively address

changing people and organisation requirements relating to new

technologies, new markets, new manufacturing or distribution

processes. For example, many companies are initiating or

acquiring e-business ventures. How should these be organised?

Should they be integrated with the parent business, or given high

autonomy? How should they be managed to attract and retain

the talent that is so critical? How can knowledge and learning

be leveraged across organisational lines? How much “order and

control” is tolerable in an organisation when speed, flexibility, and

agility are vital to be competitive?

Business strategy

Human Resource strategy

strategic analysis:establish the strategic context

• Assessdrivingforcesshapingthefutureof the industry (technology, competitors, markets, customer requirements, etc.)

• Determinekeysuccessfactors• Assessbusinessandorganisational

capabilities (strengths and weaknesses)• Definestrategicissues• Determinefuturemarketpositioningand

competitive advantage

• Assesspeopleandorganisationalaspects/implications of the strategic context

• Assesspeople-relatedorganisationalcapabilities (current situation, strengths and weaknesses)

• Determinefuturepeopleandorganisational requirements (preferred future state)

• Determinepeople-relatedbusinessissues(gaps between current and future state)

strategy formulation: define a plan to achieve an advantageous market position

• Formulatemission,vision,values (a shared mindset)

• Definetherequiredculture,managementphilosophy, and business practices

• Setbusinessobjectivesandpriorities• Developactionplans(steps,timing,

responsibility, resources required, and performance measures)

• Allocateresources

• Developpeople-relatedstrategiesto address these issues (objectives, priorities, action plans, and measures)

strategy implementation: execute the plan

• Developrequiredorganisationalcapabilities (structure, systems, processes, talent, etc.)

• Manageperformance(establishperformance expectations and accountability for results, manage performance, evaluate and reward performance)

• Enableeffectivechange(communication,involvement, influence, initiatives, etc.)

• Aligncorepeoplemanagementprocesses to enable strategy implementation

• Alignthehumanresourcefunctionwithchanging requirements (organisation, roles, capabilities, systems, practices, etc.)

• Establishandimplementabusinessplanfor the HR function itself (objectives, resources, priorities, measures, etc.)

attRacting, Retaining, and develoPing cRitical talent• Recruitingandselectingscarcetalentwithcriticalskills• Developingtherequiredcapabilitiesinthecurrenttalent• Buildingloyaltywithlesscompanycommitment(e.g.,jobsecurity)

and employee commitment• Providingthenecessary“valueproposition”forcriticaltalentgroups• Providingattentiontothe“wholeperson”(e.g.,desiredwork

environment, development, work-family balance)• Addressingtheneeds/interestsof“generationx”and

the “millennium generation”

Building HigH PeRFoRmance WoRk oRganisations• Buildingcommitmenttocreatingahighperformanceculture.• Establishingaccountabilityforachievingbusinessresults

(e.g., balanced scorecard)• Emphasisingthebusinesscasethatprovidesalineofsightto

business results• Buildingcustomerintimacyandanobsessiononcustomersatisfaction• Communicatingthedirectionthebusinessistakingandwhatitmeans

to each person• Promotingteamworkandcollaborationacrossorganisationalunits

and regions• Enablingindividualstoupdatetheirexpertiseandskills,beresponsible

for learning• Acceleratingspeed/cycles,innovationandcreativity• Aligningrewardsystemswithchangingpriorities(e.g.,incentives,

profit sharing, stock ownership, team-based compensation)• Buildingvaluesandprincipleswhichwillsustainlong-term

growth of company

aligning PeoPle WitH tHe Business• Involvingemployeesinthebusinessplanningprocess(topdown,

bottom up iteration)• Buildingabusinessmindset,addressinghowemployeesmay

contribute and building commitment through understanding• Establishingcross-businessactivities(e.g.,cross-functionalteams,

assignments, communications)• Buildingmoreeffectivetwo-way,personalcommunicationswith

managers, team leaders, or coaches• Evolvingfromqualitymanagementandre-engineeringtobalanced

change integration focusing on growth, market share, new markets, and customer retention

MANAGEMENT

AUGUST 2008 I humanCapital 69

Prof Sattar Bawany is the Adjunct Professor of Strategy from Paris Graduate School of Management (PGSM Business School) and Adjunct Faculty for ‘Strategic and Change Management’ Module of SHRI’s Graduate Diploma in Human Capital Management (GDipHCM) Program. He is also the Head of Transition Coaching of DBM Asia Pacific.

ReferencesBawany,S.(2004),‘HRasaStrategicBusinessPartnerinToday'sNewKnowledgeEconomy’,"HumanCapital",SingaporeHumanResourcesInstitute,March/April2004.

Gratton, L. (1999), Human Resource Strategy (London: Oxford University Press).

Miles, R. E., and Snow, C.C. (1984) 'Designing strategic human resource systems'. Organisational Dynamics (Summer): 36-52.

Pfeffer, J. (1998), The Human Equation (Boston: Harvard Business School Press).

Purcell,J(1989),"TheImpactofCorporateStrategyonHumanResourceManagement",inStorey,J(ed)NewPerspectivesonHumanResourceManagement(London:Routledge).

Purcell, J (1995), “Corporate Strategy and the Link with Human Resource Management”, in Storey, J (ed) Human Resource Management: A Critical Text (London: Routledge).

Sanz-Valle, R., Sabater-Sanchez, R. and Aragon-Sanchez, A. (1998) “Human resource management and business strategy links: an empirical study”. International Journal of Human Resource Management 10/4: 655-671.

Schuler,R.S.andMacMillan,I.C.(1984),"GainingCompetitiveAdvantageThroughHumanResourceManagementPractices",HumanResourceManagement23(3):241-255.

Schuler,R.S.andJackson,S.E.(August1997),"LinkingCompetitiveStrategieswithHumanResourceManagementPractices,"AcademyofManagementExecutive:207-219.

Storey, J. (1992) The Management of Human Resources, (Oxford: Blackwell).

Thompson,A.A.andStrickland,A.J.(1998),CraftingandImplementingStrategy,10thed.(NewYork:McGraw Hill).

Ulrich, D. (1006) Human Resource Champions, (Boston: Harvard Business School Press).

Wright, P. M., and McMahan, G.C. (1992) “Theoretical perspectives for strategic human resource management”. Journal of Management 18: 295-320.

Wright, P. M., and Snell, S.A. (1998) “Toward a unifying framework for exploring fit and flexibility in strategic human resource management”. Academy of Management Review 23/4: 756-772.

As human resource leaders and business leaders, we raise

questions, provide information, and provoke deeper thinking about

strategic choices and strategy implementation. To implement new

strategies, our businesses must manage people differently. And for

the business to manage people differently, we must formulate and

implement business strategies differently – ensuring consideration

of important people-related issues as business issues. As long

as business strategies overwhelmingly emphasize financial and

market considerations, the people considerations (however crucial

they may be) will be addressed later – and later may be too late.

oPPoRtunities to leadExecutives typically do not invite HR leaders to provide inputs to

discussions of strategic choices. They don’t know what contribution

is possible. Accordingly, as leaders, we must seize opportunities

to lead by applying a business perspective to identify people-

related business issues. We need to become actively engaged in

the studies, projects, meetings, and informal discussions that result

in strategic choices. In the process, we will learn about business

strategies and their implementation requirements. The formal

strategic planning process is one forum, but informal discussions

of people-related issues and solutions usually provide the most

important opportunities.

Whenever we discuss a human resource initiative or action, we

need to explain why it is important. What issue does it address;

what business strategy, and in turn, what business issues and

external driving forces? For example, it’s not enough to say that

a work-family initiative will improve employee retention; we must

establish that retention is critical to contain costs of recruiting

and retraining, develop the experienced talent needed to grow

the business, and maintain customer service continuity. In even

a short conversation (e.g., an elevator ride), we should be able to

articulate the business case for an initiative. We also should raise

questions when we believe capabilities do not exist to execute a

given strategy – and force consideration of new implementation

actions or even changes in the business strategy.

The opportunities for HR leadership are greatest for senior-

level HR directors in business units or functionally specialized

HR consultants working with business units as clients. They are

already “at the table”, with access to information and opportunities

to speak up and ask pertinent questions. Experience indicates that

informed and thoughtful HR leaders will be welcomed and valued.

conclusionActing as business leaders are different from saying we are business

leaders. Studies have found that HR leaders are not fulfilling the role,

even while they acknowledge it is important. As business leaders we

set our priorities according to the potential business impact of activities

and concentrate our time and energies on the most important. The

HR leader role is a primarily a “front office” role – with a majority of

time devoted to interaction with others on the management team.

HR leaders are moving away from the “back office” role, reducing their

time spent as operational problem solvers. Effective HR leaders rely

on colleagues across the human resource community to handle more

of the operational human resource work. And to maintain functional

excellence with scarce resources, we are outsourcing services,

leveraging technology, and enabling employees and managers to

meet their own needs with minimal help.

Finally, we need to develop the capabilities required to be

effective business leaders and human resource leaders. As human

resource and business leaders, we strive for superb execution of

strategies that will give our business an advantage by matching

internal capabilities with external market opportunities far more

effectively than our competitors. We are obsessed with doing the

right things, achieving results, and thereby help achieve targeted

business objectives. To become effective in this role, we must

create opportunities to lead, find the time to lead, and develop our

capabilities to lead.

But there is more – we have the opportunity to participate

directly in the formulation of strategy. When we feel strategic, we

are acting as business leaders as well as human resource leaders,

helping to shape strategy as well as implement it. We can influence

strategic thinking through our personal participation and inputs.

We also can help ensure that the planning process is appropriate

for our business and that it is conducted effectively, with all

stakeholders effectively engaged.

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