THE TEN PILLARS OF HCM 4.0 MODEL VALUE PROPOSITION

 

MR VIKASH MITTERSAIN

He is the Chairman & Managing Director of Nazara Technologies Ltd ; Founder of the IBG Chamber of Commerce & Honorary Consul General  to Republic of Mali

Dr Wilfred Monteiro- The author of the book HCM 4.0 MODEL BUSINESS CENTRIC MODEL FOR INDUSTRY 4.0 (published by Himalaya Publishing House)  has a central theme: THE VALUE OF ‘HUMAN  CAPITAL’ AS A STRATEGIC TOOL FOR COMPETITIVENESS He bulls eye aims at  the value proposition of how to foster a company  turnaround  with the HCM 4.0 Model Business Centric Model.    

The author has very succinctly summarized the Value Proposition of the HCM 4.0 Model in 10 points. These would be useful as goalpost for any CEO/Entrepreneur who wants to take his company to the Next-Level of Business Excellence. HCM function chiefs could look at this summary as a agenda for the coming year. Here is the brief summary of my gleanings from the book:

1-CREATING INSPIRED  LEADERSHIP

Strong leaders work in tandem with HCM to design  the workplace environment; work both on  its strengths and flaws ; a recognize of the new rules of work; show a willingness to change and  alter aspects of their leadership style;  structure methods to begin with  what they can change. HCM 4.0 MODEL must drive the message that leadership is an action, not a position. Leading people is more important than just managing work.

2.BUILDING A  RESOURCE CALLED TALENT

Business excellence described earlier  depends heavily on competent personnel, better-than-adequate competent capabilities and effective internal organization. Building an inventory of talent to match the demands of the business strategy is the deciding factor between success or failure  in strategy execution.  When technology can be copied easily the only thing which cannot be copied is delivery of  the customer experience – this is really  enabled by the unique talent of a company. Thus the key deliverable for HCM 4.0 MODEL is to acquire and integrate prime talent in the companies fabric with the best  learning facilities and rewards system; develop  commitment and capability to deliver business results supported by robust measurement and evaluation  of people performance.

 

3.CREATING A LEARNING ORGANISATION

Knowledge has become a the cutting edge for  competitive advantage for Industry 4.0 demands organizational capabilities such as agility which quickly respond to both threats and opportunities with a vibrant zeal of a talented workforce . This enables winning company to quickly turn strategy into action through efficient lean processes  and create the conditions for seamless change. 

HCM4.0  MODEL makes Learning the core competency of the  organization. This leads to an incomparable learning capacity to meet future demands and align with customer expectations.   Here HCM 4.0  plays the role of a talent incubator   helping the organization to come to compete on the basis of its quality of talent. 

4.RAISING THE LEVEL OF EMPLOYEE ENGAGEMENT

Employee engagement is the emotional commitment the employee has to the organization and its goals. This emotional commitment means engaged employees actually care about their work and their company. As former multinational  CEO and  management luminary  once said, “TO WIN IN THE MARKETPLACE YOU MUST FIRST WIN IN THE WORKPLACE.” Employee engagement is the key to activating a high performing workforce. HCM4.0  s initiatives  an increase  employee commitment and capability This  is the missing key to the company becoming a  market leader.    

 

5-ENHANCING THE   EMPLOYEE EXPERIENCE DURING THE EMPLOYEE LIFE CYCLE;

Engagement begins with a designer employee experience. The neck-to-neck competition for talent, means your  employee experience must stand out from offerings of other employers. A unique employee experience is one of the most powerful investments your organization can make. Agile HCM 4.0 MODEL   would mean you continually improve the employee experience with creative ways of customization and acknowledge that employee delight is a moving target.

 

6.FOSTER A VIBARANT CULTURE TO BREED SUCCESS :

Organizational culture first needs to be recognized as a crucial factor  in shaping organization effectiveness.. Maintaining an effective culture is so important that it, in fact, trumps even strategy as a critical success factor . Culture  is  like “the operating system” of the organization; which  guides how employees think, act and feel. A “ culture audit” is periodically need if management may find that it is not practicing what it preaches. HCM 4.0 MODEL has the continuous task of shaping and evolving culture which emerges inadvertently and needs a special initiative for  change of direction.

 

7. IGNITING SPIRIT OF ACHIEVEMENT  & INNOVATION

HCM fosters  pro-active  behaviors; this concept suggests that you work faster than the competition who is busy copying and improvising on your latest technology.  The spirit of Innovation takes the earlier point further; this implies  a restlessness to do better and gatecrash into  the market as the pioneer. In one scenario people may respond to pain areas and take stop gap action. But in Industry 4.0 a company needs  to  seek hidden opportunity areas.Companies like Apple 3M Toyota worldwide and within India companies like Hindustan Unilever and Larsen and Toubro are best examples of this ethos.

8. CREATE CHANGE READINESS FOR ORGANISATIONAL RENEWAL 

HCM4.0  acts as a catalyst for change- providing ideas and challenge to management teams, thus. HCM  must encourage individuals and functions that embrace technology, take risks, act globally, go first, move fast, and innovate. An effective Business-centered HCM leader must be a skilled influencer having  the courage to challenge and induce change when it is necessary. HCM can identify and communicate  potential threats , and develop scenarios  showing what could happen in the future. HCM 4.0 MODEL presents  the challenge of  promoting the change initiatives so that top  leaders own and champion the change; demonstrate public commitment to making it happen; garner resources to make it happen; give personal time and attention to following it through.

9. HCM SERVICE DELIVERY EXCELLENCE

HCM  has to first clear its own  backyard if it wishes to be recognized as a performance enabler. HCM must lead by its own example of continuous improvement and renewal.  The standard set for HCM  services must project it as  an agent of continuous transformation, shaping business processes delivering administrative efficiency. HCM service delivery excellence  implies how the line managers  and the rank and file (the internal customers ) view the HCM services. Are they  being customized to their requirements? Feedback about the user-friendly experience is an important rating.

10. DEVELOP EXECUTION AS A CORE COMPETENCY

A well-crafted strategy; may fail to deliver on your most important goals if  it is not  integrated with  great execution. Strategy Execution is a long-term core competency every organization needs. Execution Excellence demands clarity of objective from inspired  leadership; which is the net effect of the value chain of HCM 4.0 MODEL;  This  in turn leads to clear expectations and work plans.  Good execution needs quality of the inter group  dialogue and cross functional working; which surely  aids effective decision-making and  resources  deployment to bring about  execution excellence . It is implied that if  strategy is being executed well, that means people practices are working.  

ROUNDING UP

I read the book with rabid interest during my flight from Mumbai to Dubai a few months ago . The lessons were really captivating and I made a TASK LIST of ideas I would implement in my company Nazara Technologies Ltd. The book    details  a  practical framework which integrates the discordant HCM processes and practices into an holistic HCM Master Plan ( not leaving out the tricks and tactics of execution; including  a detailed list of pitfalls and obstacles in the journey of implementation)  CEOs &  Entrepreneurs and Family Business Owners  who need to spearhead a new wave of HCM in their companies should use it a charter since  – every concept is linked to practical application.

CEOs have  the mega-task of building the capability of the organization to deliver strategy. The logic is simple people execute strategy, not processes not machines and technology alone .  

Forward looking CEOs should fundamentally remake HCM into a business unit that thinks like a profit center , functions independently  like a division , has its own way to track ROI to elevate itself into a full-fledged member of the C-Suite. 

I would recommend every  Human Resource managers and other function managers at senior levels   who wish to learn strategic ways of managing the function must buy the book and read it . The author say “…Innovation in HCM is not copying from a benchmarking partner or competitor but customizing a best practice to the company’s unique business context” The author warns” … HCM 4.0 MODEL should not  whittle down to  a change of label or a juggle of management jargon but a roadmap for a revitalized HCM system…”

 

TALENT 4.0 M0DEL # REJIG THE MINDSET

 

REJIG THE MINDSET

TALENT 4.0  is not rewording of  concepts and principles  which may be called new jargon. “Talent4.0 has to take on a much broader perspective and holistic approach.We need a much more holistic view of how we manage people, one focused on each individual as a voluntary consumer, and a strategy which builds a culture of focus, inclusion, support, and results.

Ø  §     In “talent management” we think about lifetime career management and “pre-hire to retirement. In Talent 4.0  we focus on mobility, job to job transitions, and constant and regular movement of people to new projects and assignments.

 

Ø  §     In “talent management” we focus on the integration of HR practices across the lifecycle of an employee. In Talent 4.0  we focus on making employees happy, giving them a highly engaging and enjoyable work experience, and giving them software tools that make their work easier, not just tools for HR.

 

Ø  §     In “talent management” we focus on identifying the “top talent” and segmenting, ranking, and rating people based on performance and potential. In Talent 4.0  we focus on everyone’s strengths and find roles that help people leverage their skills, empowering them to add value wherever we can.

 

Ø  §     In “talent management” we put together career ladders and progressive training programs that take you from place to place. In Talent 4.0  we assume that people want to learn all the time and in their own way, so we create an entire “learning environment” to help people continuously develop and learn at work.

 

Ø  §     In “talent management” we segment people and reward them based on performance, with narrow bands of compensation. In Talent 4.0  we reward hyper performers with tremendous rewards and try to make sure everyone is rewarded based on their potential market value, not just their performance rating.

 

Ø  §     In “talent management” we think about people in terms of the way they add value to the company, training and focusing them on what the business needs. In Talent 4.0  we focus on each individual as an “owner” and try to create an environment where they feel part of the mission and give them flexibility to add value in unique and special ways.

 

Ø  §     In “talent management” we create talent pools and try to group people into segments and clusters to manage them better. In Talent 4.0  we embrace and honor diversity and realize that every person is unique and try to remove unconscious bias and empower people to thrive in their own way.

 

Ø  §     In “talent management” we buy software that integrates all of HR together into an “integrated data platform.” In Talent 4.0  we buy software that empowers people to do their jobs better, is very easy to use, and is a “system of engagement.”

 

Ø  The shifts are profound and subtle at the same time. Ultimately what has happened is that employees are now “in charge” and we as HR or business leaders have to think about building a company or organization that honors and empowers everyone. Sure some people won’t fit, so we need to assess and focus on fit more than ever – but once we hire someone into the company, we want to build an organization that engages and empowers them to succeed.

FRAMEWORK  TO GET STARTED

To recruit, grow, and retain top talent, you first need to set goals for talent management that align with larger organizational goals and evaluate internal processes related to hiring and retention. 

Setting goals for talent management is critical if you want to see real results. Here are  two ways you can ensure you’re setting the right goals for your organization: 

Ø Align your goals with your organization’s overall strategy. Talent management is meant to contribute to the overall health of your organization. If talent management is causing you to fall behind on critical fundraising or business goals, it may be time to course correct. 

Ø Involve leaders, HR reps, and managers in goal-setting. While your HR team will be in charge of coordinating talent management, you’ll need to make sure everyone is on board. Effective talent management requires a concerted effort on the part of the HR reps, leaders, and managers to make your organization a place where people want to get hired and work for the long term. 

As you set achievable goals for enhancing your talent management process, you’ll ensure your entire team is on the same page and moving in a positive direction. These goals will also give you something to measure your progress against, providing you the chance to course correct as needed.

EVALUATE INTERNAL PROCESSES 

As you look for gaps in your current talent management process, you’ll need to evaluate individual processes related to recruiting and retention. There may be one (or more) problem areas that you can hone in on as you strive to improve your organization’s:

RECRUITING PROCESS: 

Recruiting is everything you do to find and hire new employees at your organization. This involves writing thorough job descriptions, screening and shortlisting candidates, conducting interviews, and extending offers. Step into your employees’ and previous job candidates’ shoes to evaluate your recruiting process. Do you consistently set clear expectations for individual roles in job descriptions? Are you upfront in job interviews about hiring top talent? How do you communicate job offers to your top candidates? 

ONBOARDING PROCESS: 

Onboarding involves training a new employee in their new role and bringing them up to speed on larger organizational initiatives and goals. As you evaluate your onboarding process, you might consider asking your employees for feedback on their onboarding experience. Did onboarding truly prepare them to perform their jobs effectively? Do they wish they had received more training upfront? 

PERFORMANCE MANAGEMENT PROCESS: 

Performance management involves everything from consistent communication and coaching to annual performance reviews. Work with your managers to determine how effective your performance management strategy is at identifying retention risks and mitigating them, helping employees find fulfillment in their roles, and setting them up to grow at your organization. 

EXIT INTERVIEW PROCESS: 

When an employee leaves your organization, what kind of information do you gather from them in an exit interview? With sufficient preparation and well-worded questions, you can learn a lot about an employee’s experience with your organization. Additionally, you can use the information collected in exit interviews to better anticipate employees’ needs before they submit an unexpected letter of resignation.

With clear goals and information about individual processes, your leaders, HR reps, and managers can create a solid plan for how you’ll improve the employee experience at your organization. Remember to use your data and strive to be objective during this planning step. While you can’t do much to change your employees’ past experiences, you can learn from them and move forward in a positive direction.

 

With best compliments

Dr Wilfred Monteiro

Curator TALENT 4.0 MODEL

 

JUST CROSSED A MILESTONE # 25th MASTERCLASS EVENTS ON HCM 4.0 MODEL on 10 FEBRUARY 2024

 

MY SECOND BOOK to be published later in the year 2024

GOOD NEWS

 for my avid readers and alumni. 

My second book 

to be published later this year

FIRESIDE CHAT WITH MR VIKESH WALIA INSTITUTE OF DIRECTORS -

 HCM 4.0 # 

DRIVEN BY MANAGMEMENT BY MEASUREMENT  

WHY HAS MANAGEMENT-BY- MEASUREMENT APPROACH POSITIONED AS  A PILLAR OF THE HCM 4.0 MODEL?

The celebrated CEO of Hewlett Packard Carly Fiorina said: “Information is the currency of the digital age. The goal of digital technology is to turn data into information and information into insight”.. Every company has its own collection of raw data converting this into insightful  information is the business need. Information needs organization and  analysis for deeper understanding.  Information which is focused on understanding the past; what happened and why it happened has limited value.

Information is really valuable when it facilities comparisons and trends  and provides clues to the future .To plan ahead HCM 4.0 needs reliable, high-quality data for predicting future trends; addressing  recurrent business problems and making  long term decision making

 

WHAT IS THE URGENCY FOR HCM4.0 TO RADICALLY SHIFT TO THE MANAGEMENT-BY- MEASUREMENT APPROACH?

Business functions  like marketing, supply chain and manufacturing report   their  results in sharp monetary terms. These  business functions   not long ago used to rely on intuition and hazy reports to define  their  outcomes; they  have made this shift toward the use of metrics/KPI in everything they do.

As a result of all these changes, CEO’s, CFO's and  stakeholders are now looking  to HCM to adopt  HCM Metrics/KPI/KPIs  as a means of reporting and measuring and to provide  insight for board level decision making.

Today top management treats measurement as a key C-Suite issue. The HCM function has to go  beyond anecdotal evidence  to justify it cost/benefit calculations.  It is only keeping with the norms of  business  that HCM too  must work like   other business functions

HOW SHOULD CHROs THINK  STRATEGICALLY ABOUT MANAGEMENT- BY-MEASUREMENT IN INDUSTRY 4.0?

 

Thinking strategically about measurement means understanding whether the measurement system you are considering will provide you with the kinds of information that will help you manage the HCM function strategically. This is a quantum leap  HCM wants to be a business partner, it must show business impact. It’s time to realize the traditional metrics add little value to strategic business decision-making .  HCM 4.0  today must integrate traditional metrics to KPI;  and this must be  aligned to corporate objectives.  This will be the pathway when even the critics of HCM will say ‘’they are  solving real problems’ . Hence they  want to make sure they are making the right decisions based on data; to be particularly aware of the way they prioritize and measure this data, especially when it comes to the measurement of the strategic plan.

HOW DOES   MANAGEMENT-BY- MEASUREMENT APPROACH REALLY PROVIDE THE CUTTING EDGE TO THE HCM 4.0 MODEL?

The first step is to discard the accounting mentality that says that HCM is primarily a cost center in which cost minimization is the principal objective and measure of success. The main cause of this misconception is the lack  of hard evidence demonstrating their contribution to firm performance.

We have too often generic statements like “ HCM must add value to the business..” hence HCM  Management- By-Results approach must answer these  questions

1.     how can the value HCM brings to the business be ascertained in monetary/business terms?. 

2.    How does HCM  justify with facts and figures its  impact on business functions?? Especially when its time speak up to defend HCM budgets against cutbacks or outsourcing.

3.    How does HCM justify its  positive impact on  employee productivity and satisfaction ??

 The CHRO  also needs comprehensive case management data / summary accounting statement to  track year-to year-trends and improvements in HR critical business processes. The best way to leapfrog is to  focus on the few items that have the biggest cost and the most impact.  The biggest stumbling block to  become a true strategic partner is presenting hard facts supported by data.

 

HOW CAN THE CHRO PRESENT THE BENEFITS CASE TO HIS OWN TEAM THAT   MANAGEMENT-BY- MEASUREMENT APPROACH IS AN IMPERATIVE?

 

The language of business is results which in turn are measured in rupees !!!  The ‘Management By  Measurement’ approach  should aim   to establish a clear “line of sight “ between HCM interventions and business results

the Management-by- Measurement approach ADDRESSES the challenge before business centric HCM leaders to covert good intent  into visible and recognizable results. It urges HCM leaders to REGOGNIZE the  benefits of the Management-by- Measurement approach:  Which makes sure that HCM activities inside the firm deliver value; Makes them visible and recognized by  line managers first and then the top management

  Management-by- Measurement approach has a strong is emphasis on how to FACILITATE REPORTING AND MIS The language of business is results which in turn are measured in rupees !!! CEO’s and the top deck of management  are typically short on time so they  focus on key business issues; hence the need for concise reports which provide the insight for decision making It explains why  HCM has to lift the horizon levels from the lag  factor of measurement to proactive people analytics

 Finally Management-by- Measurement approach  shows how to BUILD A CASE FOR HCM TRANSFORMATION This approach would strengthen HCM  operational efficiency as well as build a strong case at the year-end budget meet for fund allocation.

Metrics/KPIs  facilitates management reporting/MIS HCM 4.0 processes need a barometer to  help guard against inflated claims  both for and against HCM 4.0 operations and results. Management-By-Results approach   are useful in day-to-day top management processes  like  reporting and improving  performance; managing accountabilities and aligning organizations activities to streamline work.

WILL MANAGEMENT-BY- MEASUREMENT APPROACH GIVE HCM4.0 RECOGNITION AND RESPECT IN THE C-SUITE?

HCM 4.0 for over two decades is struggling hard  to gain recognition for its  contributions in driving organizational success. The Quality movement of the 1980s  gave rise to the dictum that what gets measured get done! HCM 4.0 does likewise

 The finishing line of  HCM 4.0 Model  is Management-by-Measurement. HCM 4.0  puts it faith in  Metrics/KPIs & Analytics. HCM 4.0   can  explode the myths that  everything in HCM cannot  be measured. We can banish for ever doubts about HCM  contribution and company improved  performance. HCM 4.0  we need to forever ban the all too common phrases “I think”, “I believe” and “I feel” and replace these phrases each time with… “the data shows”.