Baumgartner & Partner Competence Profile HR Business Partner

B t &P t C t P fil Baumgartner Partner Competence Profile

SHARPENING THE FOCUS OF THE HR BUSINESS PARTNER FUNCTION HR Strategy St t www.baumgartner.de

HR Operational O ti l Excellence

T l t&P Talent Performance f Management

Baumgartner & Partner Unternehmensberatung GmbH

.

Kurze Mühren 13

.

C Compensation ti Management

20095 Hamburg

.

B Benchmarking h ki

+49 49 (40) 28 41 64 - 0

Ba mgartner Baumgartner g & Partner Competence Profile Sharpening the Focus of the HR Business Partner Function

September 20, 20 2010 Page 2

Ab t t Abstract Effectiveness Effecti eness + Efficienc Efficiencyy = HR E Excellence. cellence This is the mission statement of almost all large g HR organizations organi g ations in Europe. E rope p All of them are undergoing ndergoing g g an HR ‘transformation’ transformation . And the great g majority j y have identified the HR business ppartner role to take responsibility p y for the ‘effectiveness’ effectiveness ppart of the equation. equation q The aim of business partners is to increase the ‘pro-activity’ pro-activity of the HR function and with it the value added to the business. business H However, the th bbusiness i partner t ffunction ti iis nott easy tto iimplement. l t O One off th the reasons is i that th t the th bbusiness i has h rarely l asked k d tto ‘partner’ ‘partner t ’ with ith th the HR ffunction ti andd still pprimarilyy calls on it for ppure functional expert p support support. pp Another reason is that it takes time for former HR ggeneralists to ggrow into the new ppro-active pro active role role. And last but not least, last, least the interface of tasks between a business partner and an independent, independent centralized HR services function is under constant discussion. discussion In the endd only end, l very ffew companies i seem tto bbe hhappy with ith their th i currentt bbusiness i partner t model. model d l Lookingg at it from the HR client’s client s perspective perspective, p p , jjust one thingg appears pp to be clear: The client is onlyy willingg to accept p extra cost of HR services for extra value value. In this respect the client is not willing to pay for HR people sitting in regular business meetings without adding value to it. it Or for unfocused jour fixes without a t ibl outcome. tangible outcome t Or O for f multiple lti l contact t t persons in i HR. HR So S the th client li t calls ll ffor a clear l andd ffocusedd HR bbusiness i partner t ffunction. function ti Lookingg at what is happening pp g in major j organizations g Baumgartner g & Partners identifyy a trend to re-invent re invent the business ppartner function byy sharpening p g itit’ss focus: ‘Strategic’ Strategic business partners are different from ‘functional functional advisors’ advisors . S Some off the th latest l t t thinking thi ki andd project j t experience i is i collected ll t d on the th nextt pages. Please Pl askk us, should h ld you require i additional dditi l information! i f ti ! Baumgartner g & Partners September 2010



C Currently tl almost l t all ll large l enterprises t i transform t f their th i HR to t achieve hi higher ig effectiveness ff i ((“ (“More More …”) …”)) and efficiency ffi i y ((“ (“… … ffor Less Less”). Less”) ”))). HR Transformation Trend 1: Effectiveness St t Strategy Consulting

S i Services S Structures Processes Technology gy

St t Strategy Added Value

Consultingg Service / Administration O t OutOut sourcing

T diti l HR Traditional HR-Function F ti Function Focus: Internal Service Provider

Inefficient Processes

S i / Service/ Ad i i t ti Administration

HR Business B i Partner P t Focus: Added Value

Inefficient Processes

Service Center

T d 2: Trend 2 Effi i Efficiency



HR organizations i ti strive t i for f higher hi h effectiveness ff ti b by iintending t di tto actt more p pro pro-actively actively i y than iin the p past ((‘ (‘HR HR Business i Partnership’) Partnership ip’)) … From From … ((without … ((without HR HR Business Business Partnership) Partnership) p) p)

“Thank “Th Thankk you for f signing i i the th company agreementt tto reduce the workforce in eastern Europe and the list

To … ((with HR Business Partnership) p)

off employees pl y involved involved. i l d I will ill handle h dl replacements pl t andd llayoffs layoffs. ff ”

“May “M Mayy I askk for f the h summaryy off the h management g meeting ti minutes i t on th the hi hiring i plans l for f our new branch in XY so that I can prepare for recruiting activities?” activities? ti iti ?”

“II have heard of the issues with our joint j venture in eastern t Europe E p andd about b t th the reduction d ti ttalks lk with ith the JV partner. partner Here are my suggestions on how to retain and developp our 10 topp talents talents.“

“Dear Dear eexecutive ec ti e board colleagues colleagues, colleag es the settlement of our new retail branch in XY will challenge g the recruitment it t off experts experts. p t Partly P tly financing fi i g a chair h i att the local university will be the most economic solution to build a sustainable talent pipeline pp in XY over the th nextt 5 years years. y ”

R ti Reactive

P active Pro-active Pro ti



… but b t experience i pitfalls itf ll iimplementing l ti th the pro pro-active active ti role l (‘HR Business ((‘HR i Partner Model’). Model’) Model’))). Center of E ll Excellence

HR Service C t Center

ESS: Employee Self Service

0

HR Governance Governance

0

3

0T i l pitfalls 0Typical itf ll off HR bbusiness i partnerships: t hi 1 Ownership between HR business 1. partner tasks and administrative service center tasks is unclear. unclear 2 Management 2. g rarely rarely accepts p propro p active ti role l off HR andd won’t won’tt make k up missing HR support of employees. employees 3 HR business partners lack skills and 3. competences p to fulfill the ppro-active pro active role role.

HR Business Partner

1

0 Employees

2

Managers

Consistent HR Information System y

MSS: Manager Self Service



Cli t perspective Client ti calls ll ffor diff differentiated ti t d b business i partner t role: l Tactical i manager g support pp vs. vs strategic gi consultancy y Hi h High

Serrvviccee C Se Co om mple p exxityy

St t i Business Strategic B i Partner P t H Harmonization i ti Standardization A t Automation ti Tactical Manager g S Support t Transaction M Management t L Low

Product Design g & G Governance

Strategic g C Consulting li C t off C Center Competence t

HR Advisor

HR Services “A “Acceptable” Acceptable t bl ” price i off services i ffrom client li t perspective ti

Hi h High



F Functional ti l ‘HR HR advisory’ advisory d i ’ was identified id tifi d as an important i t t building b ildi block off the HR Business i Partner service i offering ff i g HR Business Partner Service Catalogue Catalogue* g

9 9 9 9 9

Typical tasks (dos and don don‘ts) ts) of a business partner Typical decisions to be taken by business partners S t off KPI Set KPI‘s KPI‘s to t compare business b i partner t ratios ti C Competency t profile fil off a business b i partner t T Transformation f ti plan l andd career path th off a business b i partner t

* Developed by 11 business partner organizations out of the “B&P B&P business partner community” community

I.I

Linkingg HR to business » Regular g meetingg and structures for interaction » F db k culture Feedback lt » (Pil t) IImplementation (Pilot) l t ti off (new) ( ) HR products d t andd techniques t h i

II II.

S Supporting ti change h andd optimization ti i ti initiatives i iti ti » HR projects p j » P j t in Projects i the th lines li off business b i

III III.

S Supporting ti managers in i leadership l d hi » Active approach pp » S i offering Service ff i

IV IV.

Ad i i managers th Advising through h HR expertise ti » Recruiting g » C Compensation ti & b benefits fit » Performance management g » T l t managementt Talent » HR Planning g and analytics y



A l i off HR BP function Analysis f ti activities ti iti prior i to t streamlining t li i

Sh Sha arre eo off ac activvitie ess ou outt of o HR HR Bu Bus sine esss s Pa Parrtn ne err sse erv vicce e ca attalo og gue

Advisingg Managers g with HR Expertise: p HR BP Activities in Recruitment 100%

100%

80% 63%

59%

50%

80%

49%

41%

60%

53% 40%

35%

29%

24%

18%

20%

0%

0

Activities covered by HR business partner

0%

-20%

-40%

A ti iti nott coveredd by by Activities p HR business partner

% -50% 50% -60%

-80%

-100% 100%

-100%

1

2

3

4

5

6

7

8

9

10

11 Company

Source: B&P Business Partner community

Non-business-partnerNon business partner activities covered by HR business partner



HR T Transformation f ti 22.0: 00: F Functional ti l ffocus ffor th the b business i partner t (P j t E (Project Example, Example l IIndustry: d t Fi Financial i lS Services) i )

T l t/P f M Talent/Perf Talent/Perf. Mngmntt

Data Mgt Mgt. g & Reporting p g

Administration

Design & Development

Social Relations

Recruitingg

Empl Empl. p Rel./Query Rel /Query Q y Res. Res

L l Local HR Solution Delivery

D i &D Design Development l t

Data Mgt Mgt. g & Reporting p g

Social Relations

P li Design Policy D i

Administration

Recruitingg

Queryy Resolution

C Common Tools + I t Integrated t d Processes

Administration

Queryy Resolution

Processingg

Organisational/ g Management g Solutions

Change g management g

Ma ket Market Be ch a ki g Benchmarking

P ocess//Policy//P oduc Process/Policy/Product d t Desig & Go Design G e a ce Governance

T 150 Top

P l C People Cycle l

HR Service Center

HR S Service i Center C t Data Mgt Mgt. & Reporting

P&O Visibility Visibility, analysis & recommendations

((Global)) Centers of Competence p

(L l) C (Local) Centers t off Competence C t T l t /P Talent /Perf.f M Mgmntt

Individual People Solutions

Efficient Operational D li Delivery

Employee p y Relations Q Query Resolution R l ti

Administration & P Processing i

Non top 150 N Non-top 1 0 Recruiting / Mobility

Data Management & Reporting

Orggaannizzaationn & Pr O Procceesss A Alloccaatiion

Orrgaannizzaatiion & Pr O Proceessss A Alloccaatiion

HR T Trraannssffoorrm maatiioonn 1.00 m

B i Business Consulting C lti

HR H RT Trraannssffoorrm maattioonn 2.00 m

Business Partner

Business Partner



B Baumgartner t & Partner P t Profile P fil HR Strategy

HR St Strategy t St t i P Strategic Personnell Planning HR Analytics/ HR Scorecard HR Audit/ HR D Due Dili Diligence HR Transformation T f ti H Human C Capital it l Management Management Systems y

HR Operational Excellence

Talent & Performance Management g

HR B Business i P Partner t O Organization

J bP Job Profiling fili & Grading G di

HR Process Reengineering HR IT Strategy gy and Implementation p

P f Performance Management M t

C Compensation ti Benchmarking

C Competence & Skill-Management

Executive/Supervisory Board Compensation

HR Process Benchmarking

Job Grading g

HR Function Benchmarking g

Career Systems/ y Career Paths Learning g & Development p S t Systems

HR S Service i Levels l

M Management tA Audit/ dit/ Assessments

HR Outsourcing g Assessment

Benchmarking

C Compensation ti G Governance

HR Business B i Case C & I Investment t t HR Shared Services Center

Compensation Management g

Employee Retention/ Employee p y Satisfaction

Base Salaryy Variable Salaryy Concepts p Long term L Long-term t I Incentive ti S Systems t Tariff ff C Classification f

Baumgartner & Partner Competence Profile HR Business Partner

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