The-Rise-of-HR-ebook

The-Rise-of-HR-ebook

ISBN 978-1-329-01831-0

All rights reserved No part of this book covered by copyright herein may be reproduced or transmitted in any form or by any means – graphic, photocopy, recording, taping, or digital – without written permission of the publisher.www.hrci.org

www.riseofhr.com

Every contributor to this remarkable volume has graciously donated ideas and time to the over 1 million global HR professionals who want to make a difference.

hr Leadership for The fuTure workpLace

Amy Schabacker Dufrane

First, on behalf of our more than 140,000 certificants and the HR Certification

Institute (HRCI) board and staff, I would like to thank Dr Dave Ulrich, Dr Bill

Schiemann, GPHR, and Libby Sartain, SPHR, for contributing hundreds of hours

of their personal time to ensuring that this book illuminates the value and impact that HR professionals bring to organizations every day

As the industry’s foremost voice for human resources certification, HRCI has brought together the world’s leading HR experts to share insights on our profession through this inaugural Institute-sponsored publication that is being distributed globally in

an effort to advance the HR profession

Seventy-three human resources thought leaders from across the globe volunteered

to contribute their expertise to this compilation of wisdom regarding the HR profession Together, their contributions offer a comprehensive look into the critical issues transforming human resources—one of the fastest-growing professions in the workplace and one that is being influenced by many factors, including technological developments and globalization

The human resources profession sits at the center of some of the most important decisions in any business and is rapidly expanding its influence in the workplace In the United States alone, economists predict double-digit growth for human resources managers this decade, as business operations increase in volume, complexity, and variety Organizations across the globe recognize the contributions of HR as a means

to elevate acceptable business practices to exceptional business performance

HRCI is approaching 40 years of certifying human resources professionals Turning

40 affords us the chance to reflect on the lessons of youth and apply them to the future During the first four decades of our organizational journey, we have faced numerous opportunities and tests of character From these experiences, we have gained valuable knowledge about how to create still more opportunities and how

to rise to meet oncoming challenges Most importantly, we at HRCI feel privileged

to have served—and to continue to serve—the HR field by helping to spread, scale, and support best practices and professional standards

As HRCI looks ahead to the next 40 years and beyond, we recognize that HR professionals will play increasingly critical leadership roles within their organizations, further underscoring the need for strong leadership in our field

As the world’s leading provider of certification for human resources professionals, HRCI has a lengthy record of propelling the HR profession to new heights The organization began certifying HR professionals in 1976 and has evolved into providing new opportunities for ongoing career enhancement for the human resources professional Among other HR credentials conferred by HRCI, the PHR®, SPHR®, GPHR®, HRMP®, HRBP®, and CA® are the world’s most recognized HR certifications To date, nearly 140,000 professionals in 100 countries have earned these credentials through HRCI

It is both an honor and a pleasure to present the impressive collection of insights, observations, and provocations about the future of human resources presented in this book Without the leadership of Dave, Bill, and Libby, the astute contributions

of Virginia Lyon, PHR, and the both highly committed and competent staff of the

HR Certification Institute, this publication would not exist

Thank you!

Jorge Jauregui moraLes

President, World Federation of People Management

Associations

(WFPMA)

These are exciting and frightening times for professionals in HR and in other human capital roles We are all challenged globally to respond to the rapidly changing world around us I am privileged to serve as president of the World Federation

of People Management Associations, representing more than 90 national human resource associations and more than 600,000 people management professionals

In this role, I see many global trends that will reshape our professional and personal world These trends are influencing, and will continue to influence, the role of HR and human capital practices in organizations, whether they are private sector, government, NGOs, or nonprofits

For example, leaders in almost every country are facing shifting demographic trends, including five generations simultaneously in the workforce for the first time, the ever-expanding roles of women and minorities in organizations, and an aging population in many industries and locales These undeniable trends are occurring amid geopolitical shifts, unprecedented economic challenges in many regions, and unstoppable acceleration in technological innovation And, no part of the world today can survive without increasing innovation, collaboration, and productivity

preface

Change is everywhere and all the time For HR professionals and leaders who manage or shape human capital, whatever game you are playing will be changed not once, but many times over the next decade

This is the crucial setting in which the HR Certification Institute (HRCI) saw the need to pull together HR thought leaders from around the world from associations, universities, consulting, government, and business to discuss these challenges I participated in the first such event in Chicago last November where the goal was

to model collaboration, innovation, and global insights on human resource issues The result of that discussion was an invitation to more than 80 global leaders

to contribute their thinking to a truly remarkable anthology Dave Ulrich, Bill Schiemann, and Libby Sartain, who moderated the event, have pulled together 73

of these leaders to answer a simple question: What do HR professionals need to know or do to be effective in today’s and tomorrow’s business world?

This book contains essays from these thought leaders that provide fascinating and unique insights into the role of HR in today’s changing business environment The contributors to this book address questions that will shape tomorrow’s HR: What will customers and investors expect of our organizations, and how will HR leaders help grow value for these external stakeholders? What can HR do to deliver and optimize talent? How can HR professionals build organizations with capabilities

in innovation, collaboration, culture, and execution? How can changing technology and advanced analytics be applied to human capital management? How will the

HR function be governed in the future? What competencies will be critical to success as an HR professional tomorrow?

These topics—and many more—provide rich reading and a head start for those who aspire to be tomorrow’s leaders and who desire to add value through HR What’s exciting about the organization of the book is the ability for readers to move around

to topics that may be of the most interest to them Also, in asking for essays, Dave, Bill, and Libby limited lengthy dissertations and instead focused authors on key points—making this an enjoyable read They also added a useful overall introduction, conclusion, and section introductions that help frame the book’s contents

What is equally impressive to me is that these thought leaders have collaborated

in an unheard of way to share their global insights No one has been paid, and

Jorge Jauregui moraLes

everyone who has contributed has done so because of their personal commitment

to the profession HRCI has graciously spearheaded this event and is willing to help distribute this work for free With them, I envision up to 1 million HR professionals worldwide accessing this book What a remarkable statement about how we can further this great profession

Regardless of your current role or life stage, this anthology will provide new insights, but it is up to you to translate those insights into practice in your organization Also, as the world shrinks and our reachable networks increase, I hope that you will share these insights with your colleagues, enabling these ideas to reach the far corners of the globe Let us join together in the rise of HR

J Jauregui Morales, HRMP

February 2015

iNTroducTioN

Advocates of the HR Profession 1

dave ulrich, william a schiemann and Libby sartain

1 coNTexT To sTraTegy

Introduction 13

HR’s Role in the Digital Workplace: A Time for Reinvention 19

Josh Bersin Bersin by Deloitte

The Case for Change Capability: How HR Can Step Up

and Stand Out as a Strategic Change Leader .25

holly Burkett Evaluation Works

Environmental Scanning: An Emerging Challenge for HR Professionals 35

wayne f cascio University of Colorado Denver

Twelve Predictions for a New World 41

seth kahan Visionary Leadership

What HR Needs to Do to Help Develop Global Asian Talent 47

chee wei kwan Human Capital Leadership Institute

Ethics: The Price of Admission in High-Performing Organizations 55

clarissa peterson Abt Associates

Knowing the Internal and External Public-Sector Environment:

Applying HR Competencies for Results 67

fagan stackhouse Charleston County / Neil reichenberg IPMA-HR

Context Matters: Building Strategic HR From the Outside In 75

charles g Tharp Center on Executive Compensation and HR Policy Association

HR as Orchestra Conductor 81

ian Ziskin EXec EXcel Group LLC

2 orgaNiZaTioN

Introduction 91

The Importance of Culture to Achieving Superior Business Performance:

A Leadership Opportunity for HR 97

hugo Bague Rio Tinto

The Future of HR Is beyond “HR” 103

kenneth J carrig SunTrust Banks / aki onozuka-evans HR Consultant

HR as Guardian of the Future 111

Lynda gratton London Business School

Stop Advising, Start Leading 117

kristi mcfarland New Seasons Market

HR and Transparency 123

susan meisinger Columnist, Consultant and Advisor

HR From Around the World … Let’s Unite! 129

regis mulot Staples

Think Like a Marketer! 135

Libby sartain Business Advisor, Board Member and Volunteer

CHROs Need to Move From Influencing to Being Actively Engaged

in the Business 143

padma Thiruvengadam Integra Lifesciences

From War for Talent to Victory Through Organization 149

dave ulrich University of Michigan and The RBL Group

Winning in the Mobile Internet Era: What Should HR Know

and Do to Be Effective? 157

arthur yeung China Europe International Business School

3 TaLeNT suppLy

Introduction 167 HRCI Certification as a Leading Indicator of High-Potential HR Talent 171

amy schabacker dufrane HR Certification Institute / iona harding Harding Resources LLC

CEOs Want Better Performance Great Culture Can Make It Happen 179

china gorman Great Place to Work®

Strategic Workforce Planning: Preparing for Today and Tomorrow 189

carl rhodes Human Capital Institute

Wake up, HR! Your Talent Supply Chain Has a Problem .195

Lance J richards Global HRUnconferences and Crowd Companies

Driving Time to Value in the Human Age 203

mara swan ManpowerGroup

4 TaLeNT opTimiZaTioN

Introduction 213

HR as Organizational Leader and Champion of Diversity and Inclusion 217

andy Brantley College and University Professional Association for Human Resources (CUPA-HR)

The HR and CSR Partnership: Talent-Related Benefits

for Employee Volunteerism 225

paula caligiuri Northeastern University

Leave No Slice of Genius Behind: Selecting

and Developing Tomorrow’s Leaders of Innovation 233

Linda a hill Harvard Business School

The Wisdom of Women (and Madonna) 247

Tacy m Byham Development Dimensions International, Inc / debbie mcgrath HR.com

HR Imperative: Raising the Bar on Engagement 257

david shadovitz Human Resource Executive

Engaging White Men to Drive Diversity and Inclusion 263

carole watkins Cardinal Health

Attracting and Retaining Talent Through Differential Treatment 271

sandy J wayne University of Illinois at Chicago

5 iNformaTioN & aNaLyTics

Introduction 279

HR Analytics and Metrics: Scoring on the Business Scorecard 285

richard w Beatty Univeristy of Michigan

HR’s Role in a World of Pervasive Information 295

wayne Brockbank Ross School of Business University of Michigan

HR Disrupted: The Next Agenda for Delivering Value 303

diane J gherson IBM

Workforce Analytics for Strategy Execution 309

mark huselid Northeastern University

Don’t Forget About the Machinery 317

mark James Honeywell

Developing an Evidence-Based HRM Through the Conscientious Reliance

on Evidence, Sound Decision Process, and Stakeholders Perspectives 323

denise m rousseau Carnegie Mellon University

Optimizing Talent: HR’s Key Role for Tomorrow 329

william a schiemann Metrus Group

6 hr goVerNaNce

Introduction 339 The Future of HR: Will You Be Ready, Willing and Able to Lead? 347

mark Blankenship Jack in the Box Inc.

Avoiding the “Profession” Trap by Reaching Out and Retooling HR 355

John w Boudreau University of Southern California

The Future of HR: A Context of Change and Opportunity 361

peter cheese Chartered Insitute of Personnel and Development (CIPD)

HR Challenges and Solutions for Small,

Medium-Sized and Family-Owned Businesses 369

Jorge Jauregui morales World Federation of People Management Associations (WFPMA)

HR as the Cultivator of Organizational Paradoxes .375

david kryscynski Brigham Young University / mike ulrich University of South Carolina

The HR Leadership Diet: Trimming the Fat and Building Up Muscle

for a Sustainable Future-Ready Workforce 383

Low peck kem Public Service Division, Prime Minister’s Office of Singapore

HR: Think Big and Bold 391

Brigette mcinnis-day SAP

To Usher in the Age of HR, We Need to Start By Tearing It Apart 399

ron mester ERE Media, Inc.

Balancing Respect and Opportunity: When Is It Time

to Press the Reset Button? 407

Lorraine murphy Air New Zealand

Renaissance HR 415

anthony Nyberg and mike ulrich University of South Carolina

Hilton Worldwide: CHRO Lessons Learned From Our IPO Journey 421

matt schuyler Hilton Worldwide

What Do HR Departments Need to Know in the Future? 429

paul sparrow Lancaster (UK) University Management School

Developing Human Resource Professionals in India 447

arvind N agrawal RPG Group

Always Global, Always Digital! 455

pranesh anthapur Nutanix, Inc.

HR as Business Partner 461

richard L antoine AO Consulting and National Academy for Human Resources (NAHR)

Succeeding as a CHRO: Advice From an Observer 465

fred k foulkes Boston University

Creativity, Innovation, and Leadership as Key Factors in HR’s Future .471

pedro Borda hartmann Mexican Association for Human Resources Management (AMEDIRH)

Behavioral Characteristics of Highly Successful HR Leaders:

A Subjective View 477

alan r may Boeing

How Do We Get There From Here? 485

kathryn mckee Human Resources Consortia

Leveraging Employer Branding as a Key Business Strategy 493

Tresha moreland Dameron Hospital Association and HR C-Suite

The Status Quo Is Your Biggest Threat 499

donna c morris Adobe

From Banking to Berries: Acquiring Business Knowledge

All Over Again to Create Impact 505

Lynne oldham Driscoll’s

How HR Can Get the Squeaks Out of an Organization 511

garry ridge and stan sewitch WD-40 Company

Health and Financial Wellness as Keys to Productivity 519

dallas L salisbury Employee Benefit Research Institute (EBRI)

Speak the Language! 527

Jill B smart National Academy of Human Resources (NAHR)

Marketing, Measurement, and Modern HR 533

Joyce westerdahl Oracle

Tests and Trials to Certify Human Resources Professionals 541

peter wilson Australian Human Resource Institute (AHRI)

coNcLusioN

Now What? Implications for the Profession

and for You, the HR Professional 551

dave ulrich, william a schiemann and Libby sartain

adVocaTes of The hr professioN

Dave Ulrich, William A Schiemann and Libby Sartain

We are advocates of the HR profession For the most part, we like HR professionals (probably more than 1 million people worldwide), but liking the people in HR does not sustain our HR activism We strongly believe—and, importantly, can quantify—that working in HR today delivers outcomes that matter to many stakeholders When HR professionals do their work well, good things happen to:

• Employees who have both higher work productivity and personal well-being

• Organizations that deliver on business goals and create cultures that endure

• Customers who receive products or services that matter to them

• Investors (debt or equity) who have greater confidence in future earnings

• Communities (cities, regulators, society) where citizens needs are better met

In a world of increased volatility, uncertainty, complexity, and ambiguity (VUCA),

HR issues matter more than ever

greaT (aNd risky) Time To Be iN hr

The increased relevance of HR functions, practices, and professionals to stakeholder outcomes makes this both a great and a risky time to be in HR The good news is that HR professionals have more opportunity to influence business success The

Conference Board’s 2014 survey of global CEO challenges ranked human capital issues as the number one challenge.1 We have also found that the leadership profile

of successful CEOs matches the leadership profile of effective CHROs,2 and that

Estimates are that about one-third of the issues discussed at the board level are HR related (e.g., succession planning, talent review, executive compensation, governance, strategy execution, ethics, and culture)

But it is also a risky time to be in HR because the performance bar is higher HR professionals are under more scrutiny than ever to respond as their role takes on a higher profile When understudies become the leads in a play, when backup players enter a game, or when employees become owners of a company, opportunities for both success and failure increase Likewise, as HR professionals shift from policy administration, employee transactions, and functional excellence to business outcomes, they will have more and unique opportunities available to have influence

Indeed, HR is at a crossroads We believe that HR can rise to this occasion and meet these higher expectations As the role and function of HR continue to evolve, the business world’s perspectives on the field will need to evolve with them To respond to the new HR opportunities, many HR legacy mindsets that may have been true in the past need to evolve to modern realities, including:

hisToricaL myTh moderN reaLiTy

HR professionals go into HR because they like people HR is not just about liking people, but about understanding and

solving people-related problems in organizations In fact, HR often requires tough people choices to assure business results.

HR professionals don’t believe in or rely on numbers HR has relied on data for years; now more than ever

predictive analytics guide HR decision-making.

HR professionals want to get “to the table” where business

decisions are made.

HR professionals are now invited to the table; the challenge is knowing what to contribute to stay

HR’s customers are the employees in the company HR’s customers are the customers of the company; HR work

helps both internal employees and external customers.

daVe uLrich, wiLLiam a schiemaNN aNd LiBBy sarTaiN

HR’s measures of success come from delivering the practices

related to HR (e.g., staffing, training, compensation, etc.).

HR is about delivering business results; the scorecard of HR

is the business’s scorecard.

HR is responsible for the organization’s talent, leadership,

and capability.

Line managers are the primary owners of talent, leadership, and culture; HR professionals are architects who design blueprints and inform choices.

HR’s primary role is to keep the organization compliant with

laws and regulations.

Good HR leaders help the organization make good business decisions that match the risk tolerance (or appetite) of the organization.

why This Book aNd why Now: risiNg To The opporTuNiTies for hr

As the bar on HR has been raised, many thoughtful groups are working to shape the future of HR John W Boudreau and his colleagues (sponsored by SHRM, PwC, and NAHR) are focusing on expectations of HR constituencies, HR and performance, talent pipeline for HR professionals, and rewiring of the modern world Pat Wright and his colleagues (with NAHR sponsorship) are studying the role of the CHRO, with a particular focus on senior leader succession Professional HR organizations such as CIPD, AHRI, NHRDN, and others are exploring innovative ways to respond

to the opportunities

To complement and rapidly advance this work, HRCI decided to use the wisdom

of crowds to gather perspectives on the state of the field, the future of HR, and the ways HR can rise to the increased opportunities To do so, HRCI invited about 75

HR “thought leaders”4 from all areas of HR to offer their insights on a relatively simple question: What do HR professionals need to know or do to be effective in today’s and tomorrow’s business world?

While this question sounds simple, answering it is not easy It requires granular thinking about HR across numerous variables: from industry (e.g., public versus private sector) to firm size (e.g., large global firms versus small startup ventures)

to the global reach of an organization’s operations The answer to this question also requires mature thinking about a wide range of HR functions, from doing administrative processes more efficiently and providing HR functional expertise

to offering integrated HR solutions to multiple stakeholders and managing the paradoxes inherent in modern organizations Managing HR at the crossroads

means making these transitions by requiring that HR professionals both master new ideas and no longer do some of the practices of the past

We also believe that the “content” of what HR professionals must learn has to

be shaped by the “process” of doing HR How HR works together within the HR profession and between HR and its constituents (e.g., leaders, employees, customers, investors, communities) reflects the modern adaptable, networked organization

HR as a profession should model what we ask organization leaders and employees

to do, including:

• Collaboration – We appreciate that competition can lead to progress But in

today’s business world, those who compete most effectively over time need to learn to collaborate and work together Traditional “command and control” leadership styles are being replaced by “coach and collaborate” approaches that make the whole greater than its parts

• Innovation – We should focus more on what can be than what has been, which

requires innovation Innovation can and will occur in HR services, business models, and mindsets We should look for new, creative, and pioneering solutions

to business problems

• Application – We realize that activity for the sake of activity is not helpful HR

practices, governance, and competencies should result in favorable stakeholder outcomes We want to see more ideas with impact, where academic theory and research inform practice and where practice guides research

• Globalization – In our digitally wired, global world, ideas move quickly—

instantly even—from one part of the world to another HR work should be adaptive to unique global contexts so that learning can occur through diversity

of thought

As editors of this volume, we strongly believe that the opportunities facing HR will

be realized when HR content informs, and HR processes model, the modern and ever-evolving organization

how To read aNd use The Book

As discussed, we asked a number of thought leaders to share their insights on how

HR professionals can be effective We did not have a preconceived framework for how these thought leaders would answer this question, but we hoped we would

access a broad cross-section of ideas We have been delighted by the thoughtfulness with which they approached the question and both the breadth and quality of their responses We are especially pleased that many of the thought leaders were also willing to prepare a short video clip to go along with their essay to make their ideas even more accessible.

When we met with thought leaders and reviewed their essays, we distilled their

ideas and placed their essays into seven sections Figure 1 shows the flow of these ideas and Table 1 offers the details behind each of the seven sections Each section

represents a body of knowledge or insights that HR professionals should be aware

of in order to respond to the opportunities they face

HRCI (and other partners) have sponsored and underwritten this project HRCI plans to share this book with its 140,000 certificants We believe that with other

HR associations joining this effort and with the book being forwarded to aspiring

HR professionals, these ideas could touch more than 1 million HR professionals and others in related professions

As an HR professional who wants to get better, we encourage you to look at sections, articles, and authors and to read, watch, and learn from these thoughtful HR leaders We hope the ideas captured in this book will lead to experimentation and adaptation We hope that the HR field will rise to the promises and opportunities available to us We hope that the next generation of HR professionals will also be advocates for the HR profession and continue to evolve it to deliver sustainable value

daVe uLrich, wiLLiam a schiemaNN aNd LiBBy sarTaiN

secTioN hr chaLLeNge maJor fiNdiNg

setting: what is the context for doing the right hr work?

1

Context to

strategy

How does HR respond to external trends and help

inform strategic choices?

View HR from the outside in; link HR to external outcomes

outcomes: what are the outcomes for hr work? when we come to the table, what do we talk about? 2

Organization

How does HR build the right organizational

capabilities, workplace, or systems that make the

whole greater than the individual parts?

Create a competitive organization through organization diagnosis

3

Talent Supply

How does HR ensure a supply of the right talent into

the organization by managing the flow of talent?

Redefine the workforce now and in the future

TaBLe 1 oVerView of key quesTioNs aNd fiNdiNgs

figure 1 Logic aNd fLow of hr iNsighTs

Talent

Optimization

How does HR ensure selection, acculturation,

development, performance, and retention of talent,

whether employees or other forms of labor?

Ensure personal development and growth of employees

by eliminating one size fits all for a diverse and global workforce

insights: how can information be used to improve hr decision-making and impact?

5

Analytics/

information

How does HR provide unique insights through

analytics and information?

Use data to make decisions that have impact and build a narrative

hr Brand: what is the hr brand for delivering value?

6

HR Governance

How does the HR department reinvent itself to

have a new DNA and renaissance going forward?

Create a new DNA and a renaissance for how to govern HR

7

HR

Professionals

How do HR professionals continue to learn and grow

for the future?

Manage yourself and commit to personal improvement

conclusion and making progress: how can hr professionals and departments implement and sustain their future success to really make progress?

About Dave Ulrich

Dave Ulrich is the Rensis Likert Professor of Business at the Ross School, University of Michigan, and a partner at the RBL Group, a consulting firm focused on helping organizations and leaders deliver value He studies how organizations build capabilities of leadership, speed, learning, accountability, and talent through leveraging human resources He has also helped generate award-winning databases that assess alignment between strategies, organizational capabilities,

HR practices, HR competencies, and customer and investor results Ulrich has published more than 200 articles and book chapters and more than 25 books He edited Human Resource Management from 1990 to 1999, served on the editorial boards of four journals, on the board of directors for Herman Miller, on the board of trustees at Southern Virginia University,

daVe uLrich, wiLLiam a schiemaNN aNd LiBBy sarTaiN

and is a Fellow in the National Academy of Human Resources (NAHR) Ulrich has consulted and done research with over half of the Fortune 200 and received numerous honors for his research and thought leadership In 2014, he was ranked the

No 1 speaker in management and business by Speaking.com In 2011, he was ranked the No 1 most influential thought leader in HR by HR Magazine The following year, the magazine honored him with a Lifetime Achievement Award for being “the father

of modern human resources.”

About William A Schiemann

Bill Schiemann, PhD, GPHR, is founder and CEO of Metrus Group, specializing in strategic performance measurement, organizational change, and employee alignment He and his firm are known for their pioneering work in the creation

of the People Equity (ACE) talent optimization framework, strategic performance metrics, and balanced scorecards Schiemann has consulted extensively with corporations

on the development and implementation of business and people strategies; HR measurement; strategic employee surveys; internal value assessments; and creating high-performance cultures He also founded the Metrus Institute, which supports research and publications in the human capital arena Schiemann is a thought leader in the human resources field, having written scores of articles and six books

in the human capital area, most recently the SHRM-published book, “Hidden Drivers of Success: Leveraging Employee Insights for Strategic Advantage” (2013)

He currently serves on the board of directors of the HR Certification Institute (HRCI) and is the past chair of the SHRM Foundation board of directors He has been named a Fellow and Scholar by the Society of Industrial and Organizational Psychology

About Libby Sartain

After a distinguished 30+ year career in human resources, Libby Sartain is now an active business advisor, board member, and volunteer As head of HR at Yahoo! Inc and Southwest Airlines, Sartain led significant business transformation initiatives and guided global human resources efforts focusing on attracting, retaining, and developing employees Both Yahoo! and Southwest were listed in Fortune’s “100 Best Companies to Work For in

America” and in the Fortune 500 during her tenure Sartain

serves on the board of directors of ManpowerGroup and AARP She was on the board of Peet’s Coffee & Tea Inc from 2007 to 2012 She is

on the board of the SHRM Foundation and is a trustee for the National Academy

of Human Resources Foundation She advises several startups and Fortune 500

organizations on HR, employer branding, and talent management Sartain served

as chairman of the board of the Society for Human Resource Management in 2001 and was named Fellow of the National Academy of Human Resources in 1998 The co-author of several books, she was named one of the 25 most powerful women in

HR by Human Resources Executive in 2005 She holds an MBA from the University

of North Texas and a BBA from Southern Methodist University

daVe uLrich, wiLLiam a schiemaNN aNd LiBBy sarTaiN

1 The Conference Board CEO Challenge 2014 (www.ceochallenge.org)

2 Dave Ulrich and Ellie Filler, “CEOs and CHROs: Crucial Allies and Potential Successors,” published

by the Korn Ferry Institute, 2014; also to be published in Leader to Leader.

3 Dave Ulrich, “Leadership Capital Index” (forthcoming 2015); Laurie Bassi, David Creelman, and Andrew Lambert, “The Smarter Annual Report: How Companies Are Integrating Financial and Human Capital Reporting,” Creelman Lambert and McBassi & Company, 2014.

4 We clearly acknowledge that the list of “thought leaders” who have participated in this anthology is far from exhaustive Many, many, many insightful HR leaders are doing outstanding work We tried

to cull individuals from universities, professional associations, consulting firms, the public sector, and the private sector who have unique experiences and points of view to inform next-generation

HR professionals We invited these targeted individuals from around the world to capture a global perspective, but we clearly recognize that there are many more thoughtful HR professionals who could offer valuable insights to the question we posed

1 coNTexT To sTraTegy

coNTexT To sTraTegy

Introduction

No one can deny that our world is changing, FAST Technology has enabled information to flow rapidly around the world and to dramatically change when, where, and how we live and work We inhabit global villages where events in any one part of the world quickly become news and actionable everywhere Global changes affect all aspects of our personal and professional lives

This section of essays shares how HR professionals need to be increasingly aware

of global business and social trends because they create the context and set the criteria for doing effective HR work Each of the essays in this section connects changes in the outside world to responses inside a company Each essentially offers the logic of the entire anthology: external business and social conditions are changing the expectations of how work is done and thus setting new standards for

HR Collectively, these essays capture the content for the evolution and future of effective HR work

In the past half-century or so, the HR profession has evolved through three general

waves (see Figure 1), and a fourth (highlighted by these essays) is emerging Each wave

follows a similar curve through time, from startup through learning, growth, and then stability Note that each wave continues today and builds on the previous waves

figure 1 eVoLuTioN of hr work iN waVes

Wave 1 emphasized the administrative work of HR, where HR personnel focused on terms and conditions of work, delivery of HR services, and regulatory compliance HR was predominantly what we would describe as an “administrative and transactional utility.” So long as HR consistently and cost-efficiently delivered the basics—employees were paid, pensions where administered, attendance was monitored, and employees were recruited—HR was seen as doing its job (e.g., cost per hire per employee would be a standard for HR)

Wave 2 emphasized the design of innovative HR practices in sourcing, compensation

or rewards, learning, communication, and so forth While each of these HR practice areas innovated in terms of what and how things were done, they also interacted with one another to provide a consistent approach to HR HR effectiveness in Wave 2 derives from innovating and integrating HR practices, and HR credibility derives from delivering best practices (e.g., HR innovation and integration would be a standard for HR)

Wave 3 has focused on the connection of individual and integrated HR practices with business success through strategic HR For the last 15 to 20 years, HR has

worked to link its work to the strategy or purposes of a business In this wave, HR professionals turned strategies into HR priorities to deliver on strategic promises (e.g., implementation of strategy would be a standard for HR)

Wave 4 uses HR practices to derive and respond to external business conditions We call this wave “HR from the outside in.” Outside-in HR goes beyond strategy to align its work with business contexts and stakeholders We acknowledge that the three earlier waves represent HR work that still has to be done well—HR administration must be flawless; HR practices must be innovative and integrated; and HR must turn strategic aspirations into HR actions (increased investor, customer, and community value would be the standard for HR)

The essays in this section highlight how to respond to this outside-in focus by understanding and relating to general business conditions so that investor, customer, and community value are created

six geNeraL BusiNess coNdiTioNs aNd The hr respoNse

When informed HR professionals tell us about their business, they often have a relatively long list of general trends that affect them The essays in this section offer more rigorous typologies that go beyond general lists Wayne F Cascio’s essay does an exceptional job at building the case for environmental scanning, and he offers an approach to accomplish this scanning by looking at six contexts that will shape work Seth Kahan also offers insights on 12 predictions for the future of work that will shape HR Robert Ployhart makes a clear case for HR being at the center of responding to key external business trends, and he lays out five of them Ian Ziskin examines five trends and offers 11 implications of these trends for HR

As we look across these wonderful essays, we can organize and prioritize these contextual trends into six categories, each of which operates both independently and collectively in shaping the future of HR

• Social – Personal lifestyles are changing with respect to families, urbanization,

ethics, religion, and expectations of well-being For example, Chee Wei Kwan’s essay offers unique insights into Asian economic growth, social conditions, and organizational implications Ian Ziskin’s deep example of mass customization is a social trend that will shift how HR responds Many essays point to the globalization

of society as a major driver of business performance

• Technology – New devices and concepts enable access and transparency not

only through information but also in relationships, and they can destroy whole industries while bringing new ones to life Almost every essay refers to digital, information, and technological shifts Josh Bersin’s essay shows how the digital workplace will dramatically shift HR to help employees scientifically access information to make better decisions

• Economics – Economic cycles shape consumer and government confidence Freer

flow of capital across economic boundaries leads to more granular, or precise, thinking about investments and risk-taking, and gives rise to some industries The growth of the Asian economy in Kwan’s essay is an example of this new economy

• Politics – Regulatory shifts change the expectations of government in corporate

and personal lives; political unrest often signals a loss of confidence in government institutions Charles G Tharp offers unique insights into the legislative and public policy process and how it shapes an HR agenda Neil Reichenberg and Fagan Stackhouse offer unique insights about accomplishing HR work from the public-sector perspective and they show how public-sector work shapes the economy of an entire country

• Environment – The earth’s resources that provide energy for growth are limited and

need to be managed responsibly; in addition, social responsibility shapes how people behave Holly Burkett’s essay on sustainability and Clarissa Peterson’s insights on ethics give us perspectives on the social responsibility that shapes HR work

• Demographics – Changing birth rates, education, and income levels affect

employee and consumer behavior Effective HR professionals are aware of and sensitive to these external conditions, which determine how their organizations position themselves for the future The demographic profile of the future workforce

is mentioned in nearly every essay, as HR must manage talent in the future

These exceptional essays call for HR professionals not only to recognize and understand these trends but to build HR services that respond These services address many of the issues discussed throughout this book, including more awareness of managing talent, building the organization, using information and analytics to make decisions, governing the HR department and processes, and informing HR professionals

The mega message of these essays is for HR professionals to move beyond Wave 1 (administrative expertise), Wave 2 (functional excellence), and Wave 3 (strategic

HR) and to capture the value of Wave 4 (outside in) While most might acknowledge that the idea of “outside in” has merit, these essays go beyond the idea to offer ways for HR professionals to access very specific business contexts, and give marvelous guidance about how to shape organizational actions against these external factors

These essays capture the future of business, work, and HR When HR professionals grasp external expectations, they create appropriate internal actions When HR professionals appreciate these trends and their implications, they come to business discussions ready to turn context into strategy, which goes beyond strategic HR where they help implement strategies that others create When HR professionals understand the context, they can create tailored HR practices that will serve external investors, customers, and communities as well as internal employees and organizational cultures These contextual factors set criteria that guide actions and increase HR value

iNTroducTioN

hr’s roLe iN The digiTaL workpLace: a Time for

reiNVeNTioN

Josh Bersin

The human resources profession is at a crossroads Over the last few years digital and internet technologies have radically changed the way we work, requiring a tremendous change in all areas of human resources Our latest global research1

shows that business and HR leaders have three major challenges: (1) building and strengthening the new and changing leadership pipeline; (2) finding ways to re-engage employees and build a strong global culture in a world of never-ending work; and (3) reskilling the HR function itself, which often feels behind

If we consider HR’s job as the steward of the “people processes” in a company,

we have to recognize that almost every part of management, capability building, recruiting, and communication has been radically changed by technology

• The overwhelmed employee Today the barriers between work and life have gone

away More than two-thirds of our research respondents tell us they are “overwhelmed

by work.” A National Journal poll found that more than 40 percent of all workers today believe it is impossible to get ahead in their career without significantly sacrificing time with their family and personal life.2 Companies are struggling to

deal with this issue and know we need to simplify, help people focus, and reduce complexity—but how we create this “new organization” is still a work in process.

• Transparency of all people data Almost all HR-related information is now

freely shared on the internet Glassdoor holds unfiltered feedback about an organization’s CEO, culture, and benefits; LinkedIn is an open recruiting tool that lets recruiters find and contact more than 500 million professionals at almost no cost; and a flurry of new tools are now enabling employees to share their salaries, rate their managers, and talk about what it’s like to work at their company Should we still have secret talent reviews and performance ratings? More and more people resent this They expect transparency in HR practices as well as from leadership

• Accelerated expectations for careers Only 30 years ago, when I entered the

workforce, we expected our employers to give us lifetime careers Today this expectation has all but disappeared, and young employees change jobs every 12

to 24 months readily In his new book The Alliance, Reid Hoffman, chairman and founder of LinkedIn, writes that we have entered a world where workers are like professional athletes They work for a company and contribute for a while, but when needs change, they move to another team, taking their skills and expertise with them So the concept of a “job” has changed and organizations have to manage their teams in a world of a rapidly changing, mobile, contingent working economy Companies now have to move beyond “succession management” to putting in place what we call programs for “facilitated talent mobility.” But how?

• New models of leadership One of the most important roles HR plays is the

development and support of the leadership pipeline But leadership styles and needs today are radically different from the traditional models pioneered by GE and IBM in the last few decades Leaders must be agile, globally aware, innovative, and highly collaborative While the top-down hierarchical structure still exists

in most companies, more and more research shows that it is empowerment and agility that drives success in today’s economy

• The enormous power of data and science Finally, HR must come to grips with the

fact that data and science are going to transform much of what we do Many of the

“gut feel” decisions made by management (and HR) are soon to be replaced by driven decisions: who to hire, who to promote, what career paths to facilitate, how much to pay people—and even where to locate a facility, how big an office someone needs, and what type of food we should serve in the cafeteria All these decisions,