HC Global

 What is value-based HR?

Well, without being facetious it does what is says 'on the tin', i.e. HR is value-based. But value here isn't just a one-dimensional financial aspect but actually seven if you conduct a proper VB-HR exercise.

And by the way HR function cost-reduction by itself is not value-based. I'll say that again..... HR function cost-reduction by itself is not value-based. Just once more......... HR function cost-reduction by itself is not value-based.

Why do I repeat this?

Well - I've been repeating this over and over again in various blog entries/presentations etc to combat the 'lazy thinking' that prevails too often in HR function circles. We're only two weeks into the New Year and already I've seen more PR announcements of HR cutting costs like it's the reason it's there.

TRY THIS: The reason the HR function exists is to cut its own costs.

Say it a few more times. Feeling a tad embarrassed? Stupid even? To the point of questioning what you're saying? Quite right....

And yet here we are with various HR Directors lining up to say that very thing. That isn't value-based HR it's moronic HR. We've collectively just spent the last 15 years + trying to build out of the 'personnel function' tag with its limited administration focus, only to then seemingly 'box' ourselves back into the 'box'.

Now there's nothing wrong if you want to be 'Personnel' in the transactional/administrative sense. The problem being as I have said before in that all things 'personnel' can be pretty much outsourced. Not much of an HR profession there.

From a personal standpoint, we've started 2009 with the busiest we've ever known because it seems that an increasing number of clients are getting the bigger picture of people management evaluation (i.e. understanding exactly what the organisation requires as a value proposition from the HR/OD/HCM function) and then linking this with the HR function activity/budget/capability in a robust methodical way.

This provides true value-based HR which aligns HR (we hate this word but people still use it) with the organisation. Simple really.

If the answer is more 'workforce intelligence' -FINE. If it's focus more on employee engagement/productivity/talent management/leadership etc - FINE. If it's line managers doing more - FINE, etc.  If the answer is 'shared services' - FINE. If it's 'outsourcing' or 'selective outsourcing' - FINE. If it's 'transforming' -FINE. If it's more of the same at less cost - FINE. If it's upgrading technology - FINE.

The answer when conducting VB-HR properly is normally all of these, some of these or any combination of these. But we have NEVER encountered a case where simply 'reducing HR cost' was the answer...........

And just once more: If the answer to the question was 'reducing HR function cost' what does that say about the HR function's value proposition??

Any accountant will tell you that reducing cost is easy, very easy. The point is - what are you getting for it?

1. From a corporate function perspective like HR, if it's 'the same as before' then that's an open admission that you were inefficient previously.
2. If it's 'we focus on reducing costs we worry about the consequences later' variety then that's an open admission of HR leadership failure.
3. If it's 'we're doing what we've been asked to do' then see (2) above.
   

AND FINALLY - can we drop the 'three-legged stool' before I throw it at someone............

REMEMBER - Value-based HR - it just might advance the HR function rather than just saving it.................or in fact not being there at all internally.
If you want to understand more - just re-read some of the stories in PT last week -it's not hard to see where it's currently heading...........

UK BANK BAIL-OUTS 2 (THE RETURN OF)/THE ECONOMY
I warned you. I said after the first round it's like a horror 'B' movie where the story finishes too quickly and you know it's not finished. To misquote Oscar Wilde (The Importance of Being Earnest):

"To issue 'one' UK bank bail-out is unfortunate. To issue 'two' looks like carelessness....."

For those who still think that the economy will be OK - you better start peeping at the TV screen. This is more scary than any slasher movie.....Last week I talked about incompetence it is now clear that the UK Government is completely clueless and incompetent to deal with the current debacle....

The latest forecasts don't read very good - see the latest from the well-respected Ernst & Young ITEM Club (GDP shrinking by 2.7% in 2009, 3.25 million unemployed by end 2010).

Now I always like to enlighten people with certain data/facts. It's not my intention to scare people (well -ok, occasionally) but here's some interesting stuff from the online CIA factbook which I have no reason to disbelieve from an economic standpoint.....

Debt external
[Definition] This entry gives the total public and private debt owed to non-residents repayable in foreign currency, goods, or services. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
As at 30 June 2007

Remember:
A trillion is 1,000,000,000,000
A billion is 1,000,000,000
A million is 1,000,000

Now the theory runs that supposedly developed countries like ours can have an 'external  debt' (i.e. financed by the world) but only up to a point. Iceland have tried it and spectacularly failed because theirs wasn't developed/balanced enough (overly reliant on finance).

Our economy is dangerously imbalanced (more so than the US, Germany or France for example, and of course smaller).
Should we be worried by this? What do you think? 
No answers on postcards please..........

THAT MAN 'SULLY'
On to some uplifting  news.
Chesley B Sullenberger III, known as 'Sully' - what a guy!

If you've been living in a cave or for that matter The Treasury/No 10, Sully is of course the 'hero captain' who managed to land the stricken US Airways flight in the Hudson river safely. A split second decision on where to land given the scenario and he chose right....

Never mind the skilled landing on water, it's reported that he walked up and down the airplane twice as it was sinking to ensure that everybody got off to safety. He then phoned his wife to say 'there's been an accident'.
And they say leadership is dead...........

GREAT EXAM ANSWERS
Part of teaching the School's HCMI course (which incidentally has seen a big increase in interest and a jump in class size) is to find some 'fun' anecdotes to use in the workshops.
Cue: ' F IN EXAMS' - the best test paper blunders, a marvellous little book by Richard Benson.
I couldn't stop laughing out loud. Here are some examples of real student answers to exam questions:
Q: Explain the term 'free press'
A: When your mum irons your trousers
Q: What is a random variable?
A: Someone with multiple personalities
Q: Describe the term 'stakeholder'
A: A vampire hunter. Buffy being the most famous.
Q: What does the phrase 'case study' mean?
A: It is a process whereby you sit and stare at your suitcase before you go on holiday but not knowing what to pack
Q: Please fill in the sections of Maslow's Hierarchy of Needs below
A: (provided in triangle format)
Cake
Ice cream
Crème egg
Biscuits
Chocolate buttons

There are many, many more and if you like this sort of thing then buy the book! For £5.99, its value is exceptional. Clearly if only wit was matched by knowledge.

Talking of exam question blunders, this takes us back to the beginning:
Q: What is value based HR?
A: ....
Q: The reason the HR function exists is?
A: ....

'Be seeing you'.....
(a tribute 'Prisoner' reference to Patrick McGoohan who sadly died last week)