HR Contribution to the Bottom Line

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HR Contribution to the Bottom Line
3RD ANNUAL PROVINCIAL PUBLIC SECTOR HUMAN
RESOURCES MANAGEMENT CONVENTION 16 SEPTEMBER
2008 Durban, South Africa

• Charlotte Mokoena
• Chief of Human Resources
• Telkom SA Ltd

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About Telkom
Who Works at TSA
Who is Telkom (Our Footprint)

• Engineers
• Technicians
• Call Centre Operators
• Customer Facing staff
• Sales Marketing
• Auditors
• IT Specialists
• Procurement
• Commercial staff
• HR Practitioners

• Other Subsidiaries
• Telkom Media
• TDS
• Swiftnet

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Where we come from As Telkom SA
SBC Telecom Malaysia as Equity Partners
Reduce staff numbers between 1999-2005
Achieve line rollout targets as part of 5 year
licence agreement
Acquired Multilinks Africa on Line
Telkom SA Ltd Established
ESS goes live / HR joins the electronic age
TBVC Incorporation
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Content Outline

• The Context
• Defining the Value of HR
• Strategic and Operational HR
• HR Impact
• Where do we start?

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• 1. The Context for HR

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HR Value-Creation Chain
Customer Experience
Shareholder Value
Company Bottom Line
Country Bottom Line
Business Results
Leadership
Employees
Customers
Organisational Culture
Macro-Level Value Creation
Organisational Viability Sustainability
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Is there a skills shortage in

• Your organisation, the public sector
• Province
• South Africa and Africa
• Globally?

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Skills Shortage
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Skills sought Investment Analysts, Business Analysts, Legal, Tax, Forensics, Accounting, Foreman, General Foremen, Site Managers, Contracts Managers Engineers, Investment Banking and Corporate Banking. Consulting Skills, ERP, Information Technology, Business Unit Practice Managers, Project Managers, Programme Managers, Thought leaders, Retail, Manufacturing, Mining, Industrial, Engineering, Financial, Business Analysts, Doctors, Nurses, Dentists, Radiographers, Physio's, OT's, Pharmacists, Chartered Accountants, Civil Engineers, Technologists Technicians, Quantity Surveyors, CAD staff, Mechanical Electrical Engineers, Marine, Oil Gas Professionals,Technical Architects,IT Developers (Investment Banking), Internal Controls Audit, Technology Risk Management, Credit, Market Operational Risk, Sarbanes-Oxley and the list goes on...
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KZN in Context
The context for business, government, HR and for
individuals has changed!
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What Priority and Scarce Skills do you need in
KZN ?

• Manufacturing provides 20 of employment
• KZN Key Sectors
• Resources agriculture, forestry, mining
• Services construction, transport, tourism
• Manufacturing clothing, chemicals and plastic,
  automotives and metals
• Agriculture, forestry and fishing in KZN 24
  share of the contribution to the countrys GDP
• (Source TI KZN)

• Engineering
• Technology
• Transport and Communication
• Services
• Agro-processing
• etc

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The Globalisation of Talent
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Dubai
1993
2003
Implications for your company?
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China
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New Business Realities Context of HR
G L O B A L I Z A T I O N

• Technology
• Connectivity always connected
• Accessibility no boundaries
• Ambiguity uncertain future
• Industry/economic trends
• Transparency open book management
• Adaptability the need to change
• Intensity market conditions
• Convergence overlap of industries
• Demographics
• Mobility movement of talent globally
• Diversity globalization of work force
• Spirituality a need for trust and values

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• Is there a
• KZN Macro-Levels
• Human Capital Strategy?

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• 2. Defining the Value of HR

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HR Value Contribution
Value is defined by the Receiver more that the
Giver
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HR Value-Creation Chain
Customer Experience
Shareholder Value
Company Bottom Line
Country Bottom Line
Business Results
Leadership
Employees
Customers
Organisational Culture
Macro-Level Value Creation
Organisational Viability Sustainability
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Defining HR Value
What level are you in your organisation?
.andWhat do you spend your time, focus and
effort on?
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Direct HR Focus
Customer Experience
Shareholder Value
Company Bottom Line
Country Bottom Line
Business Results
Leadership
Employees
Customers
Organisational Culture
Macro-Level Value Creation
Organisational Viability Sustainability
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• 3. Strategic Operational HR

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HR Contribution Continuum
Operational
Strategic
Efficient HR Operations
Link To Business Strategy
Contributes to Company Bottom Line
Inefficient HR Operations
Link To Business Operations
Influence Business Strategy
Contributes to Country Bottom Line
Moving HR To the Right
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HR Value Proposition

• A dozen things that HR Professionals MUST do!
• Defined by Dave Ulrich

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Integrated People Interventions
Human Resources Strategy
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HR Value

• At Organisational Level

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Managing the Employee Life Cycle
Employee Life Cycle
HR Activity
HR Tool
Business Challenge (Example)

• Org Design
• SHCP
• Change Management
• HR Intelligence

• Globalisation

1. Organisational Effectiveness

• HB Survey / Saratoga /
• BCTWF/ HR Reports

• Local Talent
• International Talent

• Expat Management
• Policies Procedures

2. Staffing

• Balance local and Offshore
• compensation benefits for
• holding company and offshore
• subsidiaries

• Export Management
• packages

3. Compensation Benefits
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Managing the Employee Life Cycle
Employee Life Cycle
HR Activity
HR Tool
Business Challenge (Example)

• Financial measurements
• Non- Financial measurement
• Customer Service
• People Leadership
• (Employee
• engagement, EE/AA)

• Set measurable targets
• Track and report on progress
• Implement positive/negative
• consequences

• Executive
• Leadership
• Performance

4. Performance Management

• Club Tau Incentive
• Programme
• Spotlight Award
• Leading Lights

• Differentiated yet
• standardised
• (recognition)
• Performance
• Bonuses
• Long term incentives

5. Reward Recognition

• Business aligned
• Customer Service
• Business Education
• Management and
• Leadership Development
• Technology

6. Training and Dev

• ISMP
• PME
• ICT GMP

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Managing the Employee Life Cycle
Business Challenge (Example)
Employee Life Cycle
HR Activity
HR Tool

• EAP
• AIDS/HIV Programme
• Stress management
• Programme
• SHE
• Change resilient
• Financial Resilient

7 (A) Employee Wellness

• Thuso Wellness Programme

• Resilient
• Workforce

• Employee workplace
• Performer Promoter Relations
• Diversity Programme
• Industrial Relations

7 (B) Employee Relations

• Org labour Summits
• BBBEE Diversity Programme
• EE/AA
• Disabled
• Etc.

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Managing the Employee Life Cycle
Employee Life Cycle
HR Activity
HR Tool
Business Challenge (Example)
8. Talent Management

• Succession Planning Talent
• development
• Managed Career Development
• Targeted Development

• Talent Pools
• Pool 1 Top Management
• Pool 2 Executives Leadership
• Pool 3 Global/ Biz Dev.
• Pool 4 Critical skills
• Pool 5 Rising Stars
• Differentiated Targeted
• Development (Dual Career Path)
• IMD Leaders
• Cornell Tech Expert
• ICT General Managers

• Employee
• Engagement

• Corporate
• International
• Operations

9. HR Leadership

• Strategic HR Focus
• Leverage Superior
• Skills
• Create a High
• Performance Corporate
• Culture

10. Employee Communication

• 3 Levels of Communication
• Level Critical Employee
• Value proposition messages
• Level 2 All Telkom HR Products
• Services
• Level 3 Administrative HR
• interventions
• Aligned to Brand Building

• HR Website
• e-News
• On-Line
• etc.

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HR Value

• At Provincial Level

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• Is there a
• KZN Macro-Levels Provincial
• Human Capital Strategy?

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• 4. HR Interventions Impact

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Some High Level Impact Projects Telkom SA Case
Study

• 1 Managed staff numbers from 61000 in 1999 to 25
  000 in 2007

• 2 Recruit and retain for strategic competencies
• Low churn

• 3 Market related salaries

• 9 HR Management
• Corporate
• International
• Operations

• 4 Management of underperformance

• 8 109 Expats Fit families across TSA for our
  offshore business opportunities

• 10 Employee-Centric Communication

• 7 Increased employee engagement from 47 (2005)
  to
• 52 (2007/8)

• 5 Recognise people recognised by customers

• 6 ISMP, PME, ICT General Manager

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• 5. Where do we start?

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Where do we start?

• At Provincial Level

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Get the basic information right!
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Leverage on what exists in the province
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HR Competencies for Change and Impact

• Credible Activist
• Delivering results with integrity
• Sharing information
• Building relationships of trust
• Doing HR with an attitude
• Culture and Change Steward
• Facilitating change
• Strategy Architect
• Sustaining strategic agility
• Engaging customers

• Talent Manager / Org Designer
• Ensuring todays and tomorrows talent
• Developing talent
• Fostering communication
• Designing rewards systems
• Operational Executor
• Implementing workplace policies
• Advancing HR technology
• Business Ally
• Interpreting social context
• Serving the value chain
• Articulating the value proposition
• Leveraging business technology

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Macro-Level HR Value Creation

• Identify Provincial Strategic Economic Plan
• Identify priority skills to drive economic
  development Institutionalize a Provincial Human
  Capital Strategy
• Mobilize Resources and Stakeholders
• Take ownership and leadership, communicate widely
  
• Create a workable plan and execute for impact
• Start where there are quick wins for momentum
• Share information, start with what you know.
  Dont over-analyse!!!
• Use technology to leverage process
• START!!! Remember the global competition for
  skills and resources?

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Skills Development Intervention for .? An
Example Intervention

• Identify top 5 employers departments in the
  public sector , with lead department
• Engage relevant SETA
• Use existing best practices, public or private
• Work across departments from one plan
• Use FET colleges for delivery, build their
  capacity
• Set achievable goals
• Recruit learners for existing vacancies
• Implement through co-ordinated project management
  
• Measure and report in every department

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• Create a
• KZN Macro-Levels Provincial
• Human Capital Strategy?

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HR Contribution to the Bottom Line ?

• The Employability of KZN and SA human capital
• Employment
• Poverty elimination
• Quality of Life
• Economic Growth
• Global Competiveness

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Conclusion
Harvard Business Review August 2007
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OR
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THANK YOU!
Charlotte K. Mokoena Chief of Human Resources
Telkom SA Limited mokoenck_at_telkom.co.za
www.telkom.co.za
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