Strategic Alignment of Public (WIB) and Private (Corporate HR) Workforce Development Strategies and Resources

Christine PurcellAssociate Director, Supplier Network, Industry Workforce & Manufacturing

DevelopmentCalifornia Space AuthorityCWA Meeting of the Minds September 8,

2007, 4PM

Agenda

Program Objectives – Anne McMonigle and Christine Purcell

HR Objectives, Functions, Integration with Corporate Strategy, Concerns and Trends – Christine Purcell (20 minutes)

Synopsis of HR Focus Group input and SDWP cases studies – Chuck Flacks (10 minutes)

Successful strategic implementation between a WIB and Corporate HR corporate - Kris Stadelman (10 minutes)

Q&A and discussion - 20 minutes.

Program Objectives:

Course Purpose: Increase WIB professional familiarization of HR objectives and fundamentals and how public workforce development recourses and funding can enhance corporate HR Workforce Development plans, creating a tighter alignment of private and public workforce development strategies and resources. Course Objectives – WIB professionals will become more familiar with:

History and intent of the Workforce Investment Act (WIA). WIA and Workforce Investment Boards (WIB) resources and how they can integrate and enhance a corporate HR workforce development plan. HR fundamentals, objectives, areas of practice, processes and concerns. How HR strategy is integrated with corporate life cycle, market strategy How the HR and Workforce Scorecards are integrated with the Corporate Balanced Scorecard How public workforce development entities and resources can more tightly align with corporate strategies and programs.

Additional Program Background

Additional tool – Workforce Investment Act and Workforce Investment Board (WIB) for HR Professionals course material; can be used to customize for briefing to employers

Delivery Options 60-90 minute overview of Corporate HR Fundamentals, Workforce Development Strategy and Recourses for WIB professionals – onsite and webinar deliveries

3 hour workshop to include above and additional material regarding HR practice areas, processes, concerns and alignment – and how public resources can integrate in these areas to enhance the corporate HR workforce development plan

6 hour workshop with both WIBs and HR attendees to include the above and development of attendee workforce development plans mapped to public resources

Also a version targeted to Corporate HR Professionals; CWA & CSA will be at Pacific West HR Conference – PIHRA and SD SHRM

Corporate HR Objectives, Areas of Practice and Functions

Objectives - HR’s most critical deliverable to the corporation is an optimized workforce to execute corporate objectives

Integration of HR Strategy and Systems with Corporate Strategy

HR Strategy Alignment with Stage of Business Life Cycle

HR Strategy Alignment with Corporate Market Strategy

Optimized human capital resources, integrated with technology and processes to meet corporate objectives

The right talent at the right time in the right place at the right cost

Being the employer of choice Aligned employee engagement – customer satisfaction correlates with employee satisfaction

Corporate, HR and Workforce Balanced Scorecards Top Corporate HR Trends and Challenges

Areas of Practice and Functions, Alignment among HR Systems and Integration with Corporate Strategy

Strategic Management Talent Acquisition - Recruitment – sourcing, selection, hiring, on-boarding

Talent and Workforce Development Talent Engagement Performance Management – must calibrate and differentiate

Organizational Development, including change management

Employee relations Total Rewards – recognition, compensation and benefits

Compliance

Analyze Improve ControlMeasure Results, Adjust

Define Measure

• Gap Analyses:•Performance •Engagement•Talent

• Are the right leaders and staff in place to execute well, or make corrections early? Are A players in A roles?

• Have metrics, policies, practices and processes been optimized?

StrategicManagement

Implement and standardize metrics, policies, practices and processes to lay the foundation for success

Workforce & Talent Development

Performance Management

Organizational Development, including change management

Recruitment – sourcing, selection, hiring, on-boarding

• What is the value of the data?

• Are the metrics correct?

Performance Management

Rewards – recognition, compensation and benefits

Compliance

• Are Objectives and Goals met?

If not, adjust

StrategicManagement

Organizational Development, including change management

HR’s most critical deliverable to the corporation is an optimized workforce to execute corporate objectives.

• Environmental Assessment, SWOT, PEST

• Corporate & Market Strategy

• Corporate Culture

• HR implications and integration with Corporate Strategy

• Define Long term & Short term Workforce Requirements – critical roles (A), competencies, headcount

• Define metrics to drive desired behaviors

StrategicManagement

• Talent Assessment

• Performance Measurement

• Change Readiness

• Employee engagement

Workforce & Talent Development

Talent Engagement

Performance Management

Organizational Development, including change management

1 2 3 4 5 6

Integrated HR Processes & Systems using Six Sigma DMAIC Methodology

Talent StrategyEmployee Life Cycle

AttractAttract

DevelopDevelop

RetainRetain

Business Strategy and Objectives

Talent Strategy

Strategy & Goals AlignmentStrategy & Goals AlignmentDefine Strategic CompetenciesDefine Strategic Competencies

Optimized Sourcing & On boarding

Compensation

Organizational ReadinessChange ManagementEngagement

Succession PlanCareer DevelopmentIDPs

Rewards & Recognition

Performance Management & CalibrationTalent Review & CalibrationGoal Setting - with cascading goalsEffective Feedback and Coaching

Competencies Job Families

Exit

Technical TrainingFunctional Training

Management & Leadership Development: Consistent Foundation Strategic Upgrade Individual, team, organization

HR Strategy Aligned with Organizational Life Cycle

© SHRM 2009

HR Strategy Aligned with Organizational Life Cycle

Life Cycle Crisis Need HR Prim ary Focus Introduction Leadership Creativity Talent Acquisition Growth Delegation Direction Policies, Staffing, Training &

Developm ent M aturity Bureaucracy Form al System s Rewards, Succession,

Training & Developm ent Decline Change

resistance Flexibility, stream lined decision-m aking

Change m anagem ent, Outplacem ent, Cross-training, RIFs

HR and Market Strategy Alignment

M arket Strategy

Cost Leadership

Product or Service Differentiation

Custom er Intim ate or M ass Custom ization

Talent Resource

Innovation Leader

Exam ple W al-M art Nike Am azon IBM 3M HR Strategy

Short term perform ance m easures, centralized

Selection, developm ent, retention and reward for creativity and innovation

Technical Expertise is m ost critical talent

Talent is the product; flawless execution; find and retain the :best value: em ployees

Creativity and perform ance

Talent Acquisition

Lowest cost that m eets m inim um requirem ents

Creative and innovative

External for new skills, retain technical em ployees

Specific skills

External for new ideas, retain high im pact em ployees

Perform ance M anagem ent

Productivity and efficiency

Perform ance-based - creativity

Perform ance-based - technical

Closely m easure

Perform ance-based - innovation

Talent Engagem ent

Alignm ent Retain high im pact at risk em ployees

Retain high im pact at risk em ployees

Retain high im pact at risk em ployees

Retain high im pact at risk em ployees

Training and developm ent

Process Im provem ent

Intensive- creativity

Intensive for technical em ployees

Intensive for best em ployees

Intensive- creativity

Total Rew ards

Lag Lead on innovative, creative

Lead m kt. on tech, lag on others

Include incentives, best value

Lead on innovative, creative

Corporate, HR and Workforce Balanced Scorecard Alignment – Balanced ROI

Source: Mark Huselid, The HR scorecard Seminar ©2004

Robert S. Kaplan and David P. Norton popularized the corporate balanced scorecard; Mark Huselid developed and popularized the HR and Workforce Scorecards

Workforce Development – objectives, areas of concern and challenges

Optimized Human Capital Source Select Develop Retain, Manage Out

Behavior-Based Interviewing - The single best predictor of future behavior and performance is past behavior and performance.

Costs – HR ROI Engagement – correlated with ROI Succession – Rapid Response from WIBs opportunity

Employee Engagement Data

15

Actively Disengaged

“Up for Grabs”

13% 76%

Fully Engaged

11%

Motivation and CommitmentIntend to StayGo Extra Mile

The Lack of Engagement Can Be Masked By Low Turnover and Long Work Hours

Performance Connections Copyright 2009

Further Engagement Research

The reduction in employee engagement costs US businesses over $300 billion dollars a year (Gallup)

Increasing employee engagement by 5 percent can add 2.4 percent to a business’ operating margin (Towers Perrin)

Psychologists report that one of the most important keys to happiness is engagement (Journal of Applied Psychology)

Human capital practices account for as much as 43% of the difference between a company’s market-to-book value and its competitors’. (Amit & Shoemaker)

HR Magazine: “We’re running as an economy at 30 percent efficiency because so many workers are not fully engaged.”

The presence or absence of employee engagement significantly impacts the customer

16

Performance Connections Copyright 2009

Active Engagement - ACT

Accountability and Execution Cascading aligned goals Corporate strategy and value–based goals Clear Communication Feedback Resources and Information to get the job done

Change Readiness Flexibility Creativity Innovation Collaboration

Empowering Sense of PurposePerformance Connections Copyright 2009

Trends – HR Strategies Shift from job descriptions to competency models and

job families Jobs functions change, but competency requirements remain Promotes flexible workforce – creates a pool of talent Promotes cross-functional experiential learning

Emotional Intelligence competencies are important Integrated experiential/mentoring/formal learning

talent development models Strategic Individual Development Plans Succession Plans Planned Job Rotations with Business Objectives & Metrics Managed mentor matching for different development needs Formal training Assessment - accelerate, optimize, improve, manage out

Pay for Performance – defined standards, variable pay, individual and organization success incentives

Trends – HR Practices Multigenerational Workforce – 4 generations Spiral Career Paths – lattice rather than ladder Multidisciplinary, systems knowledge and problem solving needed –

CA Career Readiness Survey - Employer Survey Online Link: http://www.CaliforniaSpaceAuthority.org/html/government_pages/career-readiness.html Workforce Allocations Strategy is shifting

Flexibility, Scalability, “Just in Time” Skills Composition Target, such as:

30% employees 30% temporary employees 20% independent contractors 20% outsourced

Source: Alvin Toeffler: Future Shock Most important criterion for next job:

Interesting work (29%) Meaningful work (18%) Work/life balance (18%)

More than half agreed: “I don’t think in terms of ‘career’…I look for ‘work’ that is satisfying.” (52%) “I don’t expect my employer to provide a clear path for me.” (57%)

Source: BlessingWhite’s The State of Career 2007 Report

Emotional Intelligence Competencies are Important

EQ – Behavioral characteristics, correlated with job success up to 66%, dynamic and increases over your lifetime, comprised of skills that can be learned, uses emotion as well as

IQ – Measures internal processing of information, correlated with job success up to 25%, formed by the late teens and cannot be enhanced through experience, relies solely on relies solely cognitive skills, gets you through school

“The rules for work are changing. . We’re being judged by a new yardstick: not just by how smart we are, but by how we handle ourselves and each other.”

-Daniel Goleman, Working with Emotional Intelligence, 1998

Emotional Intelligence Concepts and Competencies

Key EQ Components: Self-Awareness Self-Control Social Awareness Social Control

Key EQ Competency Areas: Motivation Empathy Flexibility Optimism

Many leadership competencies, 2 Mandatory leadership skills: ?????

Mandatory Leadership EQ Competencies

Key EQ Components: Self-Awareness Self-Control Social Awareness Social Control

Key EQ competency areas: Motivation Empathy Flexibility Optimism

Mandatory EQ leadership skills: Empathy – the ability to put your self in someone else’s place professionally and personally

Feedback – the ability to accept, apply and deliver feedback effectively

Trends – Employment Market Unemployment rate rose to a 26-year high of 9.4%

16.4% of people are underemployed Unemployment rates rose in 48 states: CA, NV, NC, OR, RI, SC, FL, GA post highest rates ever.

Rates will continue to climb until summer of 2010

1/3 of Americans have cancelled vacation plans

Average workweek is above 40 hours 46% of Americans say they’re struggling

Source: http://money.cnn.com/2009/06/19/news/economy/state_unemployment_report/index.htm

Trends – Market and Reactions

On pace for the worst recession in post WWII era

Deepest global recession in 30 years Federal budget deficit Increasing corporate downsizing Decline in spending on professional development- Source: SHRM Study

Some reactions: Trimming Perks and Benefits Upgrading talent rosters Postponing Retirement Transfer of Skills Relocating Going back to the classroom

2007 – CEO Top 10 Global Challenges

1 Excellence in execution 38.3%2 Sustained and steady top-line growth 36.8*3 Consistent execution of strategy by top management 31.84 Profit growth 28.45 Finding qualified managerial talent 27.26 Customer loyalty/retention 26.37 Speed, flexibility, adaptability to change 25.48 Corporate reputation 23.79 Stimulating innovation, creativity; enabling entrepreneurship 18.710 Speed to market 18.2

Source: The CEO Challenge, an annual survey of over 500 CEOs worldwide executed by The Conference Board and various partners

*In a separate study, ~1100 CEO’s surveyed globally, the Number Two threat to Growth is “Availability of Key Skills” at 72%. Only over-regulation was seen as a greater threat

Source: Pricewaterhouse Coopers 10th Annual Global CEO Survey, 2006

Directly impacted by Human Resources Customer loyalty/retention is directly correlated to aligned employee engagement

(HR Impact)Customer loyalty/retention is directly correlated to growth and profit

Global HR Trends 2008-20091. Increasing necessity to mange talent

globally2. Increasing Multiculturalism of the global

workforce3. Increased necessity for global leadership

competencies4. Changing demographics will continue to

broaden the variety of work-style preferences

5. Increased pressure on HR professionals to leverage organizational knowledge globally

6. Increased movement of western workers to eastern locations die to the growth of emerging market based multinational companies.

Source: SHRM Workplace Forecast (2008)

Going Global: Ten ThingsHR absolutely must do

1. Include people and HR issues in your MA&A due diligence2. Avoid pushing an HQ-centric agenda3. Understand local labor issues4. Learn about cultural and historical issues5. Use robust compensation and benefit practices6. Recruit the right people7. Establish, measure and report relevant local HR metrics8. Teach the folks back home about the new countries9. Establish networks and learn from others10. Create a locally-relevant, retaining work Environment

- Source: Lance J. Richards, GPHR, SPHR, Senior Director and Global Practice Leader, Human Resources Consulting, Kelly Services, June 29, 2009

©SHRM 2009

Local markets are global too – global challenges and practices apply locally

Employer Services and Alignment of WIB Resources with Corporate and HR Strategy

Workforce development One-stops, public and custom, consortium model Job recruitment and placement – alignment with Corporate and HR strategy Internships, work experience and On the Job Training (OJT) Adults and Dislocated Worker Services Job search skills Counseling and coaching Assessments and labor market advice Occupational skills training Basic skills training Internships and work experience

Layoff assistance Aversion strategies Help with layoffs Services to laid off workers

Human resource assistance – strategic and tactical, career paths, succession planning alignment, engagement, etc. Rapid Response

Employer Services and Alignment of WIB Resources with Corporate and HR Strategy

Additional Government Resources Employer Training Program (ETP) and Funding Community College Economic & Workforce Development (EWD) programs

Extension services at California State University (CSU) and University of California (UC)

Models and Case Examples – WIB and Corporate Workforce Development Alignment and Successes

Strategic Alignment of Public (WIB) and Private (Corporate HR) Workforce Development Strategies and Resources

Chuck Flacks, Director of Research and Policy, San Diego Workforce

Partnership HR Focus Group Summary

CWA Meeting of the Minds September 8, 2007, 4PM

Biggest Challenges Getting employers to “pull trigger” and hire

HR Departments too reactive, not strategic

Commitment by employers to training Employee retention and engagement Management commitment to employees Hiring youth “millennials”

Role of Workforce System One-Stops are key:

Source of referrals (diversity, pre-trained, targeted)

Good place to refer laid-off employees “Safe place” to train incumbent workers

On the Job and Customized Training

Recommendations from HR Communication – make crystal clear what it is we do

Alignment between private sector (placement agencies) and public sector workforce systems

Focus on incumbent workers – ladders and lattices

Help industries understand benefits of training for the future

What Should WIBs Know About HR? HR often low on totem pole in companies

Needs change more frequently than training is available

Human resource planning (and workforce system) are often too reactive – strategic planning needed.

Strategic Alignment of Public (WIB) and Private (Corporate HR) Workforce Development Strategies and Resources

Kris Stadelman, Executive Director, NOVA

CWA Meeting of the Minds September 8, 2007, 4PM

As always, it’s about the relationship

First impression may be Rapid Response

Can assist in transition from “personnel” to talent development

Boeing example – pipeline mapping