Developing a Corporate HR Strategy AN INTERNATIONAL BUSINESS

1
Developing a Corporate HR Strategy

• An international Business example
• Etihad Airways
• United Arab Emirates

2
Introduction

• Jill Turner
• Manager, Recruitment, Development Equity
• Previous experience
• VP HR Strategy Projects, Etihad Airways
• VP Recruitment, Etihad Airways
• HR Director, JMH Group
• Qualification
• MSc Training Performance Management
• BPS Psychometrician

3
Corporate strategy model
economic environment - 3 year timeframe key
levers increase revenue growth, improve
operational efficiency, increase asset
efficiency, proactive management of operating
environment Revenue Growth Efficiency
Maximisation Cost Containment
4
BIG PICTURE A dream that we work back from 3-5
years focus A stretch but achievable Clear
understood by all Short and Measurable
HR VISION
KEY WAY 01
KEY WAY 02
KEY WAY 03
KEY WAYS TO SUCCEED If these are done well HR
will succeed 5 words or less - Clear story?
ACTIONS AND MILESTONES
ACTIONS AND MILESTONES
DRILL DOWN ON THE DETAIL 3 5 year focus leading
to the vision Are action points/milestones
measurable? Are the key HR activities present?
ACTIONS AND MILESTONES
SUPPORTING BEHAVIOURS
ARE THE KEY WAYS SUPPORTED? Are they
measurable? Maximum of 5, aligned with Co. values
5
HR VISION Best People, Best Practice, Best
Value
BIG PICTURE
Best Fit Systems Processes
One Team One Voice
Relentless Customer Focus
KEY WAYS TO SUCCEED

• Strategic/Proactive Partnership
• Approach CRM
• Climate surveys targeting
• changing needs
• Select Best Fit Service
• Delivery Model
• Centralise Outstation Services
• Realign HR Divisional
• Structure
• Select Right People for Roles
• Ensure Full Engagement
• Introduce Centres of
• Excellence

• Adopt Kaizen approach
• to Process Re-engineering
• Conduct Customer Audit,
• Assessment and Critical Path
• Analysis
• Optimise Oracle
• Ensure SOPs are
• process driven
• Review HR value chains
• Integrate Innovate
• Match technology for optimised

• Lead by example
• Live Corporate Values
• Foster Division wide mutual
• respect support
• Align Goals, Priorities, Targets
• Delivery Timelines
• Align Org structure
• with Service Delivery Model
• Match people to roles develop
• Focus on core Business

DRILL DOWN
Business Goal Focused - Actively Listening
Communication - Adaptable - Positive Speak
SUPPORTINGBEHAVIOURS
6
HR maturity assessment
Characteristics

• Widespread acceptance of HRs technical expertise
  and business acumen

• Senior leaders question
• HR value/contribution

• Select line managers value
• HRs contribution in some
• areas

• Senior leaders want HRs
• insight on strategic business decisions

• High cost of service to value
• delivered

• Improving cost-to-value of
• core services and customer
• satisfaction

• Key services administered
• effectively at acceptable cost

• Achieving best-in-class
• value-to-cost

• HR as preferred provider for technical and
  strategic advice
• Clearly defined HR roles and hand-offs

• Sustained history of HR
• identifying and resolving complex people
• issues

• Primarily administrative and
• programmatic work

• Emerging track record in
• value added HR programs

• Technology-enabled shared service delivery linked
  to ERP
• Seamless use of vendors

• Unsophisticated or
• patchwork use of technology and outsourced
  providers

• Sophisticated use of techfor self-service
  integratesHR activities/processes intooverall
  business plan

• Consolidated technology and outsourced solutions
  to improve speed and effectiveness of
  administration

• Improve outsource vendorsto improve cost/quality
• Increasing customersatisfaction/efficiency
  ofshared services
• Employee/manager self-service
• Link HR data to ERP
• Solving complex people issues achieving
  measurable results

• Addressing complex business issues through people
• Accelerating change
• Improving labor costs
• Building intellectual capital and sustained
  competitive advantage
• Continuous improvement on administration and
  technical expertise

• Fix administrative problems
• Introduce integrated technology
• Build credibility throughefficiency
  andimplementation of selectedHR programs of
  value

• Restructuring HR
• Outsource/insource as appropriate
• Re-engineering work processes for
  standardisation
• Introduce shared services and call center
  technology
• Quality delivery on broader array of people
  programs

• Continuous improvement on value-to-cost for
  administrative work
• Reputation as strategic advisor and problem
  solver of complex people issues
• Reporting and analytics provide business insight

• Best-in-class company for administrative and HR
  programs
• Reputation for breakthrough solutions to people
  related issues
• Demonstrative value created

• Flawless administrativedelivery
• Expanded base of satisfiedcustomers (line and
  employees)

• Higher level of customer satisfaction
• Improved value-to-cost

7
HR maturity model
Transactional
Transformational
EY VISION
HR - NOW
Stage 0 No Conscious Personnel Management
8
BEST PEOPLE, BEST PRACTICE, BEST VALUE
This is to be achieved by being an integrated,
highly effective strategic business partner with
aligned solutions and services. Through HR
Transformation, the shape of HR is changed to
increasing direct, business support to the
business and reducing administration.
New Human Resources Delivery Model
Human Resources must add strategic value to the
business
9
Overall recommendations

• Align HR structure to the new operating model
• Split of project and day-to -day roles
• Establish HR Oracle Super Users in HR Division -
  re-skill, up-skill

• Identify and address quick hits in processes
• Implement BPR LSS recommendations cut out
  waste, improve efficiencies, reduce multiple
  hand-offs, multiple approval levels, execute
  process steps in tandem
• Execute process transformation initiatives in
  tandem

• Undertake training Super Users on each key
  functionality, HR / IT support / organisational
  staff
• Drive structured communication interventions
• Implement Change Management programme to support
  all initiatives
• Fully define roles and responsibilities and
  delegation of authority
• Ensure optimal staffing numbers, with correctly
  skilled people

• Implement Oracle system recommendations per HR
  process
• Optimise functionality
• Prioritise implementation of new features and
  modules
• Resolve Oracle issues and stabilise the
  application
• Implement a well defined Oracle HRMS support
  service

10
High HR process change impact
!
TOP 5 Require immediate action

• High impact in terms of recurring foundation
  aspects
• Visible improvement to be experienced by HRs
  customers
• Support Company value drivers

!
!
!
!
!
11
Initiatives for 2008 and 2009
Q2/09
Q3/09
Q4/09
Q1/10
Q4/08
Q1/09
Detailed design of Employee Service Centre
implementation
14
Employee Service Centre
!
14

• Administration and Payroll

13
Admin Payroll
13
12
Employee Separation
Optimise
Employee Separation
12
Total On-boarding and Induction re-design
implementation
11
New Hire Integration
11
!
Total Recruitment re-design implementation
10
Recruitment
10
!
9
Embed BSC. Start tracking functional HR
performance metrics
HR BSC Performance Metrics Tracking (ongoing)
9
Agree Talent Management Staff Development
Framework implement
8
Talent Management Development
8
Embed and further roll-out Performance Management
System
7
Staff Performance Management
7
!
Total Reward Strategy defined and implemented
6
Total Reward Strategy
6
Foundation Interdependent Oracle Config Dev
may be required
Consistent job grading linked to reward system
(Hay Project)
5
Job Grading
5
Oracle configuration and correction of org
positions. BPR recommendations
4
Manage Org Positions
4
!
Implementation of Finance and HR BPR
recommendations
Workforce Planning Budgeting
3
3
HR operating model incl. HR BPs. Policies and
Procedures. Design implement.
HR Operating Model Governance
2
2
Sustain Change
Training for optimal use of Oracle
functionality. Key communication
Change alignment Oracle training of clients and
users
1
1
12
Summary

• Company vision, mission, business strategy
  business plan
• Models/methodologies currently in use? eg the
  house, BSC, LSS
• Know your current HR reality and your desired
  future state
• (robust analysis PESTLE/SWOT etc, structure,
  processes/practices, environment, culture, etc)
• Review and target the gaps, prioritise key
  building blocks, build in best practice
• Develop realistic short and long delivery term
  plans
• Low hanging fruit - Build the wave
• Assess organisation change readiness plan
  accordingly

13
Thank You

• Reading of Interest
• HR Transformation Building Human Resources From
  the Outside In
• By David Ulrich, McGraw-Hill 1 edition (June 22,
  2009)
• Roadmap to strategic HR turning a great idea
  into a business reality
• By Ralph Christensen