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”.

 

 

My graeful thanks to Nadir Godrej for writing the foreword to my book HCM 4.0 - business centric human capital strategy for Industry 4.0

 

FOREWORD

By Nadir Godrej

 

Now people enable companies to grow

And as the economy advances, we know

Especially for industry 4.0,

For benefits to steadily flow

The role of people is even more.

 

Our strategies must change and that’s for sure!

Human Capital must be provided

It has to be built and properly guided.

 

Good strategies can be undermined

If all the people aren’t aligned.

Piecemeal ideas have been suggested

And although they are tried and tested

HR professionals can surely try

But often they are hard to apply.

But this approach is very new.

 

As Wilfred takes a holistic view.

It’s important that you take a look

At this very timely book.

Step by step he shows the way

To systematically play.

 

The environment should be thoroughly scanned

The strategy then, can be well planned

And after an assessment of the organisation

We can have a synchronisation

Of both business and human strategy

To ensure there’s perfect synergy.

 

When both strategies work hand in hand

It’s very easy to understand

That employees know what they need

To do, in order to succeed.

This book ranges far and wide

It serves as a complete guide.

 

 

Everything can be quantified,

Many examples are supplied.

In any business it can be applied

The performance criteria are very clear

Finally HCM 4.0  can cheer.

 

 

There is a clear ultimate goal

And HCM 4.0  knows it’s precise role.

This book can perfectly show

What any business needs to know

In order to succeed and grow;

Our thanks to Wilfred Monteiro.

 

 

Nadir Godrej

Is the human resource function geared to meet the disruptive challenges of Industry 4.0???

 LIMITED COPIES IN PRINT – BUY ONLINE

Website Link - https://www.himpub.com/BookDetail.aspx?BookId=8926

Amazon Link - https://www.amazon.in/dp/9356936099?ref=myi_title_dp

 

With Best Wishes

Dr Wilfred Monteiro

A QUICK REVIEW OF MY BOOK # HCM4.0 BUSINESS CENTRIC HUMAN CAPITAL STRATEGY FOR INDUSTRY 4.0

  

 

We often hear generic statement like "HR MUST ADD VALUE TO THE BUSINESS..." The aim of this book is to highlight the value of 'human capital' as a strategic tool for business competitiveness. In the era of the fourth Industrial Revolution (also known as Industry 4.0), the Human Capital Function needs to secure an acclaimed role as an agile function; overstepping operational hurdles to become a strategic partner… thus a recognized contributor to the business bottom-line.

 

Some companies attempt the HCM function's turnaround in a piecemeal or sporadic manner; by adopting myriad ideas or fads. This trial and error approach needs to be replaced with (what this book elucidates) – the HCM 4.0 BUSINESS CENTRIC MODEL; which structures disconnected ideas into a cogent model; to dovetail seamlessly with the business strategy.

 

This book gives a practical framework which enmeshes the discordant HCM processes and practices into an holistic HCM Master Plan. The Model guides the way to the HCM function becoming business centric – first by being outward-looking to be in touch of the market conditions; and then inward-centred to gauge the organization readiness level to address hardcore business issues. All this can become real only if functional/business managers are co-opted as stakeholders. HCM needs to revamp the function and embrace the norm of "management-by- measurement" and acquire the new competencies and mindset HCM professionals need to be abreast with changing times

 

THE AIM OF THIS BOOK

 

In the last decade some companies have attempted partially and piecemeal  to  adapt myriad   ideas  about  strategic  HR.  Some companies through trial and error have found some byways to  implement them. The breakthrough needed is found in the HCM 4.0 BUSINESS CENTRIC MODEL espoused in this book.

 

It aims to   take  the human  dimension  of organizations to a holistic strategic  level. This book has a practical roadmap to transform clichés like ‘people matters’  and  ‘people are our  #1 asset’ into  a tangible business plan,  make talent a competitive  advantage, and significantly make contribution to the strategic growth  of their organization. Many authors and practitioners have espoused  individual   elements but the key is to these disconnected  ideas into a cogent model.

 

KEY FEATURES OF THE BOOK

I have drawn many lessons from my consulting experience.  I got the opportunity to work with   company directors and owners of diverse business sectors. They are all street-smart businessmen from whom I learnt several  business ideas  from them. I in turn had to debate and discuss my big idea that the LAST  competitive  advantage in a rapidly changing business world IS THE HUMAN RESOURCE EDGE.  I owe them a ton of gratitude for getting the chance to implement my ideas in their enterprise; and refine my own learning. 

 

HCM 4.0 is a robust framework, which takes us to  the strategy journey from concept- development of the master plan; alignment to business strategy. It interlinks environmental analysis with analysis of the firm - the two hemispheres of strategic management. It guides  moving away from the traditional inward looking approach - at operations and best practices and crossing the chasm to be  outbound looking at the markets and external challenges in the changing business environment.

 

CEOs in todays scenario of cost crunching; are compelled to ask for more measurement and accountability. Consequently  the HCM function is  under pressure, internally, to show REAL VALUE. In response HCM  leaders are on a sticky wicket.  A  probable reason could the HCM function has never highlighted its  contribution to creating business value;  added except in trendy, unquantifiable, and wannabe terms. the model  directs to Management-By-Measurement - to give it a real-time base sing principles of evaluation.

 

 Finally HCM 4.0 MODEL  hits upon the tricks and tactics of execution.. Each part of this book gives steps to design, manage, and implement the model. The aim of this  model is to approach the subject from a practical  angle. . Each segment of the model involves a roadmap for ‘’getting things done’’  this book is  most application based every concept is linked to practical application. I  have  tried to share  experiences  and  insights into  how every HCM manager needs to  wrestle  with complex  issues  and  helped  turn  ideas  into action Numerous examples of human resource practices are provided throughout the book, which can be practiced across the spectrum of industry; by companies both small and large. 

 

BENEFITS TO THE READER

 

The New and improved HCM 4.0 MODEL needs HCM professions who are commercially adept and are able to move ahead of the blind curve and anticipate business challenges. The book addresses the issue the new competencies HCM professionals; who  need to acquire the ‘business centric’’ mindset which can enable all senior HCM professionals to discuss eyeball to eyeball with the counterparts in the functions.

 

Here is a chance for Human Resource managers (who aspire to be  serious practitioners)  to learn strategic ways of managing human resources They  need to  understand why a strategic approach is necessary. It will also help them define a coherent framework; new and enriched  roles in the process to , execute the HCM master-plan and deliver results .   This book will be a help to senior managers , who must support HC strategy and take the lead in developing it, The functional managers need to be in harmony with the HCM strategy to support it, provide resources for it, and constantly reinforce and adjust it .

CONTENTS –

 

Part I - HCM 4.0 MODEL BLUEPRINT ON THE DRAWING BOARD
1: HCM 4.0 Writing a New Mandate —Becoming Strategic and Proactive
2: Aligning HCM 4.0 Plan to Business Strategy— An Holistic Approach
3: HCM Master Plan Summit —A Comprehensive Exercise to Turnaround Your Function
4: HCM 4.0 Model Inward/Outward Approach
5: Company-wide Cross-functional Approach —Line Manager's Role in HCM 4.0

 

Part II - HCM 4.0 EXECUTION AND THE ART OF MAKING THINGS HAPPEN
6: HCM 4.0— Strategy Execution: Changing Gears—From Planning to Execution
7: HCM 4.0 Implementation —Pitfalls and Precautions
8: Key Deliverables of HCM 4.0 Value Proposition
9: How to 'Sell' the HCM 4.0 Value Proposition?
10: HCM 4.0 Sharpens the Strategic Edge —Carving Out Its New Role Space

Part III - HOW TO WIN CREDIBILITY FOR THE HCM 4.0 MODEL?
11: HCM 4.0 Management-by-Measurement
12: The Evolution of Management-by-Measurement
13: Management-by-Measurement — Charting the Course Step-by-step
14: Sample List of Strategic Metrics —Helping HCM 4.0 to Prove its Worth
Concluding Agile HCM 4.0—Embrace Disruption

 

LIMITED COPIES IN PRINT – BUY ONLINE

Website Link - https://www.himpub.com/BookDetail.aspx?BookId=8926

Amazon Link - https://www.amazon.in/dp/9356936099?ref=myi_title_dp

 

With Best Wishes

Dr Wilfred Monteiro

 

HCM 4.0 CREDO - Training is a 365 day intervention if all line manager understand THAT PEOPLE ARE DIFFERENT AND LEARN IN DIFFERENT WAYS

 

 EXPERIENTIAL LEARNING STYLES MODEL

 

Training is a 365 day intervention if all line manager understand the basics (THAT PEOPLE ARE DIFFERENT AND LEARN IN DIFFERENT WAYS)  They would then  try  their best to become learning facilitators and  HR agents of the company

Prof David Kolb's ( a pioneer thought leader in learning theory) sets out four distinct learning styles (or preferences), which are based on a four-stage learning cycle. (which might also be interpreted as a 'training cycle'). In this respect Kolb's model is particularly elegant, since it offers both a way to understand individual people's different learning styles, and also an explanation of a cycle of experiential learning that applies to us all.

 

Kolb includes this 'cycle of learning' as a central principle his experiential learning theory, typically expressed as four-stage cycle of learning, in which 'immediate or concrete experiences' provide a basis for 'observations and reflections'. These 'observations and reflections' are assimilated and distilled into 'abstract concepts' producing new implications for action which can be 'actively tested' in turn creating new experiences.

 

Kolb says that ideally (and by inference not always) this process represents a learning cycle or spiral where the learner 'touches all the bases', ie., a cycle of experiencing, reflecting, thinking, and acting. Immediate or concrete experiences lead to observations and reflections. These reflections are then assimilated (absorbed and translated) into abstract concepts with implications for action, which the person can actively test and experiment with, which in turn enable the creation of new experiences.

 

Kolb's model therefore works on two levels - a four-stage cycle:

• Concrete Experience - (CE)
• Reflective Observation - (RO)
• Abstract Conceptualization - (AC)
• Active Experimentation - (AE)

and a four-type definition of learning styles, (each representing the combination of two preferred styles, rather like a two-by-two matrix of the four-stage cycle styles, as illustrated below), for which Kolb used the terms:

• Diverging (CE/RO)
• Assimilating (AC/RO)
• Converging (AC/AE)
• Accommodating (CE/AE)

 

KOLB LEARNING STYLES DEFINITIONS AND DESCRIPTIONS

 

Knowing a person's (and your own) learning style enables learning to be orientated according to the preferred method. That said, everyone responds to and needs the stimulus of all types of learning styles to one extent or another - it's a matter of using emphasis that fits best with the given situation and a person's learning style preferences.

Here are brief descriptions of the four Kolb learning styles:

·        Diverging (feeling and watching - CE/RO) - These people are able to look at things from different perspectives. They are sensitive. They prefer to watch rather than do, tending to gather information and use imagination to solve problems. They are best at viewing concrete situations several different viewpoints. Kolb called this style 'Diverging' because these people perform better in situations that require ideas-generation, for example, brainstorming. People with a Diverging learning style have broad cultural interests and like to gather information. They are interested in people, tend to be imaginative and emotional, and tend to be strong in the arts. People with the Diverging style prefer to work in groups, to listen with an open mind and to receive personal feedback.

·        Assimilating (watching and thinking - AC/RO) - The Assimilating learning preference is for a concise, logical approach. Ideas and concepts are more important than people. These people require good clear explanation rather than practical opportunity. They excel at understanding wide-ranging information and organising it a clear logical format. People with an Assimilating learning style are less focused on people and more interested in ideas and abstract concepts. People with this style are more attracted to logically sound theories than approaches based on practical value. These learning style people is important for effectiveness in information and science careers. In formal learning situations, people with this style prefer readings, lectures, exploring analytical models, and having time to think things through.

·        Converging (doing and thinking - AC/AE) - People with a Converging learning style can solve problems and will use their learning to find solutions to practical issues. They prefer technical tasks, and are less concerned with people and interpersonal aspects. People with a Converging learning style are best at finding practical uses for ideas and theories. They can solve problems and make decisions by finding solutions to questions and problems. People with a Converging learning style are more attracted to technical tasks and problems than social or interpersonal issues. A Converging learning style enables specialist and technology abilities. People with a Converging style like to experiment with new ideas, to simulate, and to work with practical applications.

·        Accommodating (doing and feeling - CE/AE) - The Accommodating learning style is 'hands-on', and relies on intuition rather than logic. These people use other people's analysis, and prefer to take a practical, experiential approach. They are attracted to new challenges and experiences, and to carrying out plans. They commonly act on 'gut' instinct rather than logical analysis. People with an Accommodating learning style will tend to rely on others for information than carry out their own analysis. This learning style is prevalent and useful in roles requiring action and initiative. People with an Accommodating learning style prefer to work in teams to complete tasks. They set targets and actively work in the field trying different ways to achieve an objective.

 

As with any behavioural model, this is a guide not a strict set of rules.

Nevertheless most people clearly exhibit clear strong preferences for a given learning style. The ability to use or 'switch between' different styles is not one that we should assume comes easily or naturally to many people.

 

Simply, people who have a clear learning style preference, for whatever reason, will tend to learn more effectively if learning is orientated according to their preference.

For instance - people who prefer the 'Assimilating' learning style will not be comfortable being thrown in at the deep end without notes and instructions.

 

People who like prefer to use an 'Accommodating' learning style are likely to become frustrated if they are forced to read lots of instructions and rules, and are unable to get hands on experience as soon as possible.

 

This theory is as practical as it is deep... every manager aspiring to be a trainer or coach should understand first how these styles have influenced his learning in the last few years to make him what he is ... and they use these styles to help people learn and become what they ought to be ...ie work at their full potential

 

With best compliments

Dr Wilfred Monteiro

Mumbai- India

 

www.synergymanager.net