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Competency-based HR:

Design and Implementation


Today’s Business Challenges
The Pressure to The Demand for The Pace of Industry The Emphasis on
Grow Cost Reduction Consolidation Speed & Cycle Time
> Investor demands for > Global > The acquisition frenzy > Increasing workloads
higher that average competition > Offsetting the due to downsizing
returns > Over capacity premium paid over > Lean manufacturing
> Ownership by > Commoditization market value > Reengineering
venture capitalists & > Deregulation
> Higher installed > The rise of service
private equity firms
base of products > Shrinking customer convenience as a
> Maturing industries, base differentiator
& flat market growth

Less Time to Do More Work with Fewer Resources

Misguided Responses to the Demand for Better Performance


 Succumbing to Growth Traps and Managerial Pitfalls
 Over Relying on External Change Programs
 Implementing Comprehensive Change Efforts & Total System’s Solutions
 Minimizing Risk & Acting Defensively
Competency-Based HR Architecture
Management Leadership
V I S I O N
WHATS HOWS
Quantitative Desired Business Qualitative
Results
Business Strategy Culture Strategy
Organizational
Strategic Priorities Capabilities Values/Principles

Function/Dept Goals Job/Role Competencies


Organization
Design
Individual Objectives On-the-job behaviors

COMPETENCIES
Recruitment Performance Learning & Talent Rewards & Industrial
& Selection Management Development Management Recognition Relations
S Y S T E M S, P R O C E S S E S A N D M E A S U R E M E N T S
Organization Design:
The Framework
HR Roles and Accountabilities
STRATEGIC

Strategic Partner Change Agent

PROCESS PEOPLE

Administrative Employee
Expert Champion

OPERATIONAL
Dave Ulrich, Human Resource Champions, Harvard Business Press, 1997
Challenges in Implementing Competency
Based HR Programs

 When Talk Substitutes for Action :

Making Decisions
Making Presentations
Preparing Documents
Using Mission Statements
Planning
Challenges in Implementing Competency Based HR
Programs
 When Memory Is a Substitute for
Thinking:

Conventional Wisdom and Pressure for


Consistence
A Strong Culture as a Double Edged
Sword
Rigidity as a Reaction to the Threat of
Change
Challenges in Implementing Competency Based HR
Programs
 When Fear Prevents Acting on Knowledge
:

Fear as a Deliberate Management


Technique
The Pervasiveness of Fear-Based
Management
Challenges in Implementing Competency Based HR
Programs

 When Measurement Obstructs Good Judgment

Measures That Create Problems


Focus on Short-Term Financial Performance
Overly Complex Measurements
In-Process versus Outcome Measures

 When Internal Competition Turns Friends into


Enemies
Guidelines For Action

1. Why before How


2. Knowing Comes from Doing and Teaching Others
How
3. Action Counts More Than Elegant Plans and
Concepts
4. There Is No Doing Without Mistakes
5. Drive out Fear
6. Fight The Competition, Not Each Other
7. Measure What Matters and What Can Help
8. Leaders as Role Models
The 8 Stages Process of Change Implementation
1. Establishing a Sense of Urgency

2. Creating a Guiding Coalition

3. Developing a Vision and Strategy

4. Communicating the Change Vision

5. Empowering Broad-based Action

6. Generating Short-terms Wins

7. Consolidating Gains and Producing More Change

8. Anchoring New Approaches in the Culture


Developed by Prof. John P Kotter, “Leading Change”, Harvard Business School Press, 1996
Implementation Plan

Establishing a Consolida- Anchoring


Sense of Creating a Developing a Communi- Empowering Generating
ting Gains and New
Phase Urgency Guiding Vision and cating the Broad-based Short-terms
Producing Approaches in
Coalition Strategy Change Vision Action Wins
More Change the Culture

Improve Identifying Defining clear Intensive Empowering Defining short- Continue Align the new
productivity champions goals & benefits socialization people to term wins & implementation behavior
level and (management & for to drive the through various identify barriers determine in other with corporate
reduce cost functions) with change modes & measurement business units success
enough power & channels tools
Encourage
commitment
Activities Develop strategy innovativeness Use credibility Create
& action plan and risk taking Reward from short term leadership
Encourage them contributors wins to change development
to work as a systems, plan consistent
team structures that with the new
undermines the vision
vision
HR as Strategic Partner and Change Agent
Conventional Role New Role
1 Defining the project
Project goals are defined in terms of the solutions, Project are defined in terms of measurable
systems, recommendations, or techniques to be improvements in clients’ bottom-line results.
provided by the HR team
2 Determining the project’s scope The project’s scope is determined by assessing what
The project’s scope is determined by the systems or the client will be willing and be able to absorb and
technical issues to be studied. implement.
3 Designing the project Projects are divided into steps to produce rapid results
Projects are large-scale, with long cycle times and the and to gain the experience that enables further
speed and maneuverability of a glacier. progress.
4 Working on the project
First the client passes the problem to HR team; then The client and HR work together as partners at every
HR does the job and passes the results back to the stage of the project.
client.
5 Deploying project leader and team
HR Team provide focused support to the client teams,
Large project team do the work, with little client who take major responsibility for the project.
involvement.
Consequences Low risk, high returns; HR time highly leveraged; short
Big up-front investments and long cycle times before value cycle time, so there is little investment before seeing a
can be assessed; high risk and frequently low returns; may payoff; client capabilities expand with each cycle.
be little or no client learning.
Final Tip

“ Design your system around human behavior”


Douglas McGregor

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