CAHRS / Cornell University 187 Ives Hall Ithaca, NY 14853-3901 USA Tel. 607 255-9358 www.ilr.cornell.edu/CAHRS/ W O R K I N G P A P E R S E R I E S Competency Implications of Changing Human Resource Roles John Boroski Donna Blancero Lee Dyer Working Paper 9 4 – 3 1 Advancing the World of Work Competency Implications of Changing HR Roles WP 94-31 Competency Implications of Changing Human Resource Roles John Boroski Eastman Kodak Company Donna Blancero Arizona State University Lee Dyer Center for Advanced Human Resource Studies Cornell University October 1994 Working Paper #94-31 http://www.ilr.cornell.edu/CAHRS/ DRAFT: DO NOT QUOTE OR CITE WITHOUT PERMISSION OF AUTHORS This paper has not undergone formal review or approval of the faculty of the ILR School. It is intended to make results of Center research, conferences, and projects available to others interested in human resource management in preliminary form to encourage discussion and suggestions. Page 2 Competency Implications of Changing HR Roles WP 94-31 The HR Competency Study During the past decade, there has been much discussion, by human resource management researchers and professionals, surrounding the evolving role of the human resource function (Boroski, 1990; Boroski & Davis, 1992; Dyer & Blancero, 1992; Dyer & Holder, 1988; Holmes, 1992; Jackson, 1989; Lawson, 1990; McIntosh-Fletcher, 1990; McLagan, 1983, 1989; Mirabile, 1991; Moy, 1990; Sredl & Rothwell, 1987; Ulrich, Brockbank & Yeung, 1989a, 1989b; Ulrich & Lake, 1990; Ulrich & Yeung, 1989). Confronted with numerous changes in the business environment, organizations have begun looking to the human resource organization to lead or facilitate change, and to help establish or maintain a competitive work force. To deal with such challenges, human resource professionals, as change agents, may need different skills and abilities than required in the past. However, which competencies are necessary? And, more to the point, which competencies will be necessary in the future? The present study examines which competencies will be necessary to perform key human resource roles over the next decade at Eastman Kodak Company. This project was a critical component of an ongoing quality process to improve organizational capability. The results establish a platform that will enable Kodak to better assess, plan, develop, and measure the capability of human resource staff. There are two primary outcomes of this research. One is a generalizable methodology that can be applied to other organizations to examine human resource competencies, or to explore new or different human resource roles as they emerge. The second outcome involves the substantive results of the study, and it has two components. First, there are "core competencies" that have been identified as being critical for all roles within Kodak's human resource organization of the future. Second, there are "role profiles." These are descriptions of key roles along with the competencies that have been identified as being critical for effective performance in these specific roles. Before moving to the details of the study, a few words are in order concerning the company and context in which the research was conducted. The Company and the Context A prosperous past, a painful present, and an unclear future -- these constitute the context of Kodak's human resource competency initiative. The Business Context Eastman Kodak Company was founded in 1880 by George Eastman. From its beginnings in Rochester, New York, the company offered unique and valued photographic Page 3 Competency Implications of Changing HR Roles WP 94-31 products that provided a significant competitive advantage for almost a century. On a platform of sophisticated silver-halide technologies and unique manufacturing capability, the company became the premier player in the world of photographic products and services. A strong market position led to blue-chip financial performance. Employees received generous salaries and benefits. The company operated in a union-free environment in the US, and its "industrial relations" practices were admired as innovative, progressive and enlightened. In the decades of economic renascence that followed World War II, Kodak's repertoire expanded to include office, medical, and scientific products. The company continued to develop consumer and professional products that captured memories and stimulated imagination, as well as fibers, plastics, and chemicals. The 1970's brought hints of difficulty, mostly in the form of modest market acceptance of several new product lines, and patent litigation. But it was not until the 1980's that the company began to experience the harsh effects of sharing the world stage with serious competitors. In the 1980's, tougher competition, accelerated change, and new information technologies altered the dynamics of the marketplace. Environmental issues took new forms and directions. The ability of the people and organizations to respond to change became a critical issue. Changing demographics began to be reflected in the company's work force. Shortened product life-cycles and rapid technology shifts challenged historical assumptions and work processes. The explosion of electronic-based products and services raised profound questions about the future of chemical-based photographic systems. Fundamental questions about 'what businesses are we in?' and 'what businesses should we be in?”' began to attract management attention. Between 1983 and 1993, Kodak took a number of actions to stabilize its businesses and establish new directions. Repeated waves of cost-cutting, downsizing, and restructuring occurred. In 1985, the company (excluding the chemicals division) was reorganized into more than twenty business units, a major departure from the functionally organized, vertically integrated company of the past. In addition, the company invested in a large number of new ventures in an effort to diversify its operations and find new avenues for growth. These investments placed a major debt on the balance sheet, a significant change for a company that had operated for a century virtually debt-free. Debt approached the ten billion-dollar mark by 1991. Throughout the interval, financial performance retreated from former robust levels. Earnings, cash flow, and shareholder value were under siege, and financial indicators reflected an unstable environment and unfavorable trends. Page 4 Competency Implications of Changing HR Roles WP 94-31 As business pressures continued to mount, corporate management invested considerable energy in strategic clarification, seeking to identify a strategic intent and the core competencies that would carry the organization into the next century. The concept of photography, for example, was shelved in favor of "imaging," a concept that invites new paradigms and welcomes rather than fears new technologies. In 1991, the strategic clarification was accompanied by a major re-organization into three business groups: Imaging, Health, and Eastman Chemicals. Strategic alliances were established to leverage external resources. As the nineties offered no relief on the global field of competition, and financial performance was lackluster, further restructuring occurred. Many businesses that had been started or acquired in the eighties were sold. Selected functions and services were outsourced. Business process reengineering sought to re-invent major activities. Major reductions in force occurred, first voluntarily, then involuntarily, shattering the last vestiges of employment security for employees. New executive compensation plans were put in place to align compensation more closely with corporate success. The board of directors, which had been reshaped from internal to external domination, became more aggressive in the affairs of the business as shareholder impatience increased. The departure of the company's CEO in late 1993 and the hiring of an outsider to fill the position signaled the beginning of a new chapter in the company's history. Impact on HR Not unexpectedly, turmoil in the business had a significant effect on the human resource function. In the mid-eighties, a handful of internal human resource managers and professionals, began to recognize that traditional models were fast becoming inadequate. This discomfort was accelerated when the business re-organization of 1985 forced a shift in the human resource organization. Just as the new business units were struggling to view the world differently, there was a need to rethink human resource roles. As new standards of organizational performance were established, the human resource function felt pressure to justify its existence and demonstrate added value. The traditional model of personnel had focused on the administration of personnel processes and practices, and employee advocacy. Personnel executives had considerable power and influence, and personnel policies were vigorously enforced. But, as the company pursued its turbulent journey, management expectations began to change. Business managers wanted their newly defined businesses to compete on a level playing field, which meant rethinking the notions of "consistency" and "uniformity" that permeated personnel activities Page 5 Competency Implications of Changing HR Roles WP 94-31 corporate-wide. Impatience grew with the administrative model, with its tendency to say "no" to innovation and differentiation. Business managers demanded more, and expected more from the function. Human resource leaders began to re-conceptualize the human resource role, exploring the ideas of strategic partnership and human resources as a source of competitive advantage. Pioneers created new frameworks for approaching and managing human resources, and launched operational experiments. Human resource planning methodologies became a vehicle for shifting the human resource function into new directions. Human resource roles of the future were increasingly described with words such as visionary, strategist, integrator, and change agent. At first, the struggle for a new vision tended to discredit the models of the past. The once-proud heritage began to be described as personnel administration, carried out by technocrats, bureaucrats, and social workers. There was an early tendency towards polar thinking: "once we were this, now we are that." Eventually, the notion took root that the human resource function was a comprehensive spectrum of activity. The struggle to envision new directions went from paradigm conflict (polarity) to paradigm integration (paradox). During this period, the function reorganized several times. Key themes included: business/ customer focus, decentralization, effectiveness (priorities and resources), role clarification, new ways to do work, and the emergence of new principles of organization. HR On-Stage & Off-Stage Eventually, awareness of a new reality emerged. This reality can be expressed using a show-business metaphor, with a twist. The human resource function is engaged in a play called "On-Stage and Off-Stage." The "On-Stage" reference is to the function's strategic mission of delivering integrated human resource strategies and systems to build organization capability for the businesses. These are the visible, tangible actions taken to help the businesses develop and execute their strategies. This is the public performance. The "Off-Stage" reference is to those activities necessary for putting on a successful public performance. These are the pre-performance, behind-the-scene things: new structures, work processes, mindsets, roles, competencies, and, most important, leadership. At Kodak, as at many other organizations, the twist is that the human resource function is learning to conduct this two-act play in one act. The onstage performance and the off-stage Page 6 Competency Implications of Changing HR Roles WP 94-31 preparation are being carried out simultaneously, and will continue to be, without the luxury of private preparation followed by public performance. In the context of this ongoing performance, Kodak realized the need for more precise information about what it would take to assure a long, successful run. What would be the key roles? What would these roles involve? And, most important, what competencies would the key players need to contribute to the firm's success? Methodology The study designed to answer these questions had three phases (see Figure One). Phase I included the preparation of a vision of human resources at Kodak, and a description of future work requirements expressed in terms of performance requirements and behavioral illustrations. In addition, at this point, a list of potential competencies was generated. In Phase II, roles were identified, clarified, and described. Phase III consolidated information in the form of competency profiles for each of the roles previously identified. FIGURE 1: Methodology (with phases indicated) Participants To facilitate quality and acceptance, over sixty individuals participated directly in the project. Many others participated indirectly. Participants were drawn from several business groups, corporate human resources, and a research team from the Center for Advanced Human Resource Studies (CAHRS) at Cornell University. Three types of direct participation were employed: Project Team, Review Panel, and Role Advisors. Project Team. This team was .composed of twelve individuals, representing each business group, corporate, and CAHRS. This group designed the project, identified criteria to be used to identify additional participants, and participated in all Phases of the study. Page 7 Competency Implications of Changing HR Roles WP 94-31 Review Panel. This larger group was composed of twenty-one individuals (including members of the Project Team). Composed of individuals from across the corporation who were thought to be particularly progressive in their understanding and enactment of human resource practices, this panel also represented various subfunctions in the human resource organization. Role Advisors. This was the largest group in the study, numbering over sixty. Members of the Project Team and the Review Panel were included. Other members were similar in position and personal characteristics to those on the Review Panel. The organizational representation of the participants is shown in Table One. Table 1: Organizational Representation of Study Participants Project Review Role Team Panel Advisors Corporate Human Resources X X X Imaging Human Resources X X X Health Human Resources X X X Chemical Human Resources X X X Line Managers X X CAHRS X X X Criteria used to select members of the Review Panel and the Role Advisors are shown in Table Two. Table 2: Criteria used to select Review Panel and Role Advisors • Cares about the Kodak human resource competency initiative and improvement of human resource capability at Kodak • Visionary, with intellectual capacity to reflect on the future • Viewed as credible role model • Appreciates how the world is changing and able to envision the implications for the way work will be done, how people will function in organizations, potential impact on the human resource role. • Brings diverse, broad experience, and different vantage points on human resource work • Familiar with the content of a variety of human resource functions and positions, and capable of projecting the content of roles which may not exist, or whose future version will be much different from today's version • Possess insight on the particular roles to be profiled • Should include both human resource people and line managers • Not experienced, immersed, or focused in only one human resource function • Not anchored in traditional paradigms Page 8 Competency Implications of Changing HR Roles WP 94-31 Phase I of Study Phase I of the study consisted of imagining and defining a human resource vision, performance requirements, behavioral illustrations of performance requirements, and a list of potential competencies. Human Resource Vision. The vision was developed through a participative, iterative process intended to anchor the study in the future while capturing emerging business directions. The vision was developed from three perspectives: global business environment, Kodak business environment, and the human resource business environment. The intent was to outline the evolving context for the business, which in turn would influence the nature of future human resource work. The process began with a short, simple sketch, which was made available to the human resource community at large, with an invitation for enhancement based upon future projections for the business and the human resource environment. The resulting ideas were assessed and integrated into a more comprehensive statement by members of the Project Team. In addition, over sixty major line managers were interviewed to develop a profile of future organizational capabilities required by emerging strategic intent. These learnings were incorporated into a second iteration of the human resource vision. The Project Team and Review Panel further refined the vision in preparation for subsequent aspects of Phase I. The resulting human resource vision is shown in Appendix A. It is important to note that this vision is not viewed as a static document, but one that will be enhanced (and indeed already has been) as business conditions evolve, strategies are articulated, and organizational learning takes place. The vision was used as the platform for the next step of Phase 1, which was to. define the general universe of human resource work required to satisfy future customer and business requirements. The "world of human resource work" was developed in terms of future performance requirements and behavioral illustrations, but without regard to specific roles, jobs, or positions. Performance Requirements. Performance requirements are broad statements of what will be expected (i.e., what will be done) to achieve desired results. The Project Team and Review Panel collaborated to identify possible performance requirements, which were clustered for convenience into the following categories: 1) Human Resource Leadership, 2) Strategic Planning for the Business, 3) Human Resource Business Operations, and 4) Organizational Change and Performance Improvement. Page 9 Competency Implications of Changing HR Roles WP 94-31 Performance requirements were developed in a workshop. Group members were segmented into four groups, one for each of the aforementioned categories. Once a draft list of performance requirements was developed, the groups rotated. The new group then responded to the draft list, and modified it. This continued until each person had the opportunity to examine and enhance each category. Once the rotation was completed, the original groups reconvened and developed the final list of performance requirements. The total number of performance requirements was twenty-six. Behavioral Illustrations. Behavioral illustrations are specific examples of how each performance requirement might be carried out. They are not intended to be definitive articulations of all possible work-related behaviors. The illustrations are intended to help envision beyond the general performance requirements, and to better understand differences in the scope and complexity of future human resource work. Therefore, where appropriate, behavioral illustrations were designated as basic, intermediate, or advanced. Members of the Project Team and the Review Panel attended a two-day workshop to generate behavioral illustrations, initially using a computerized brainstorming technique. Participants sat at networked personal computers, typing in ideas for behaviors. Hard copies of the total brainstorming output were generated for group discussions and refinement. After brainstorming, smaller groups reconvened with the hard copies of behaviors. Similar to the exercise for performance requirements, members were rotated among categories. At the end of the rotations, each performance requirement had behavioral illustrations at up to three levels: basic, intermediate, and advanced. Back in the computer room, each behavioral illustration was voted on, and major disagreements were identified. Finally, resolution and ratification were accomplished through group discussions. The final number of behavioral illustrations was two-hundred eighty.1 Competencies. Competencies were defined as the knowledge, skills, abilities or qualities required to perform future human resource work. Using the human resource vision as a backdrop, a list of potentially applicable competencies was generated from a variety of sources: a literature search, published competency studies (for example, McBer, 1990, Lawson, 1990, McLagan, 1983, 1984, Ulrich, Brockbank, and Yeung, 1989b), CAHRS work with other sponsor companies, and unpublished studies. This list of competencies was refined, and brief definitions were developed. The list was circulated among Project Team members for additional 1 Because of their considerable length, the behavioral illustrations are not included in this paper. An example of one performance requirement with associated behavioral illustrations is provided in Appendix B. Page 10 Competency Implications of Changing HR Roles WP 94-31 refinement, and a final list emerged. For convenience, the competencies were grouped into eight categories: managerial, business, technical, interpersonal, cognitive/ imaginative, influence style, organization, and personal. Phase II of Study This phase consisted of identifying and describing key future roles for the human resource function. Roles were defined as clusters of expected behavior patterns through which human resource work would get done. They were intended to be more reflective of customer interface patterns than bundles of operational tasks. Roles were used rather than positions or jobs because it was assumed that positions would likely be different in the future, but that roles would remain more universal and durable, and would be combined in different ways for future positions. Also, roles do not presume preconceived organizational forms or concepts. Roles were identified by the Project Team, with input from the Review Panel. The process involved identification of role options, using the human resource vision and the previously generated "world of human resource work" as the anchor points. It was originally thought that eight to twelve key roles might be identified, but reflection and significant debate eventually reduced the number to six. (It was assumed that additional key roles would emerge in the future.) Single-page role descriptions were formulated. Each included a brief general description, followed by key characteristics of the roles. Once the role descriptions were established, a determination was made as to which performance requirements applied to which roles, and at what level (basic, intermediate, or advanced). The results were tested for face validity by mapping and comparing the performance requirement profiles. Table Three provides a summary of the six key roles. (Complete role descriptions are provided in Appendix C.) Page 11 Competency Implications of Changing HR Roles WP 94-31 Table 3: Human Resource Roles Initiative Leader: Role focus is to lead the development of an experimental, embryonic, or pilot human resource initiative, or guide a major initiative that requires significant attention and nurturing before mainstreaming into the organization. Consultant: Role focus is to use broad business perspective, human resource practice knowledge, and expert process skills to assist individuals and organizations in discovering needs, options, and solutions related to human and organizational issues. Strategist/Generalist: Role focus is to participate as a full partner on the business management team, design and implement strategic human resource practices and systems to build organizational capability, and manage human resource practices and services at the point of delivery. Competency Practitioner: Role focus is to find, develop or implement creative options and approaches within area(s) of human resource specialty, drawing upon diverse internal and external resources, and applying a broad, integrative human resource and business perspective. Operational Support: Role focus is to provide broad operational support for human resource work and processes, and work closely with employees to meet their human resource transactional or company-related needs. Organization Leader: Role focus is to orchestrate individuals, teams, structure, processes, and resources in human resource units consisting of multiple/ diverse functions and roles, or specialized human resource practices or functional services. This role could have significant variance in terms of scope and impact. Phase III of Study In the final phase of the study, competencies were rated to establish competency profiles for each of the six roles. Over sixty role advisors were selected from all the corporation's business groups, using the criteria noted earlier. Role advisors included both human resources people and line managers. Advisors were provided with: background on the project, the human resource vision, descriptions of the future roles, definitions of potential competencies, and a questionnaire on which to rate the competencies. To rate competencies against a particular role, an eight-point rating scale was distributed across three general descriptors: unnecessary, helpful, or essential (low, moderate, or high). Most role advisors did all six roles; a few did subsets. The resulting ratings were compiled, verified, and statistically analyzed. Comparisons were made to assess results among the various business groups and between those who participated on the Project Team and those who did not. Finally, the appropriate competencies were assembled into role profiles. Coupled with appropriate business knowledge and state of the art technical competencies, these role profiles constitute a portrait of human resource professionals of the future. Page 12 Competency Implications of Changing HR Roles WP 94-31 Results and Discussion Findings General Observations on Competency Ratings Competency ratings of "unnecessary" or "helpful" were not abundant. To some extent this was predictable, since the master list of competencies represented those with a reasonable probability of relating to human resource work of the future (as described by the performance requirements and behavioral illustrations). Still, the surprising overall significance of the competency ratings suggests that human resource professionals of the future will need a broad arsenal of competencies to be effective. There were no major differences in competency ratings among the various business groups, nor between those who were and were not members of the Project Team. This strongly suggests that the study results are truly the best "educated guess" regarding these future roles and competency requirements, and that the findings transcend business types and organizational subcultures. Core Competencies The existence of core competencies was hypothesized, and eleven such competencies were identified. Core competencies were defined as those which were rated, on average across all roles, high-moderate (5.72) to high (6.15). (The sub-scale for an "essential" rating was three to seven.) These were mostly personal and interpersonal competencies, with ethics emerging as the strongest core competency. The eleven core competencies are shown in Table Four. Table 4: Core Competencies (in rank order) 1. Ethics: possesses fidelity to fundamental values (i.e., responsibility of purpose, responsibility to constituencies, honesty, reliability, fairness, integrity, respect for the individual, respect for property). 2. Communication: uses language, style and effective expression (including nonverbal) in speaking and writing so that others can understand and take appropriate action. 3. Listening: able to interpret and use information extracted from oral communications. 4. Relationship-building: able to establish rapport, relationships and networks across a broad range of people and groups. 5. Teamwork: understanding how to collaborate and foster collaboration among others. 6. Standards of quality: has high performance expectations for self and others. 7. Judgement: able to make rational and realistic decisions based on logical assumptions which reflect factual information. 8. Results orientation: knows how to work to get results. 9. Initiative: able to go beyond the obvious requirements for a situation. 10. Self-confidence: possesses a high degree of confidence in own abilities. 11. Enthusiasm and commitment: able to believe in employer, find enjoyment and involvement in work, and to be committed to quality performance. Page 13 Competency Implications of Changing HR Roles WP 94-31 In addition to core competencies, six additional "leveragable" competencies (see Table Five) were identified. These were competencies that were rated highly across three or more roles. These quasi core competencies were later assimilated into a set of baseline competencies required for all human resource managers and professionals. Table 5: Secondary Leverage Competencies (not ranked) • Influence: ability and skill to cause an effect in indirect ways. Ability to impact individuals and organizations without exercise of direct power or command. • Utilization of resources: able to find, acquire and leverage appropriate resources, inside or outside the organization. • Customer awareness: understands both internal and external customers and their needs. • Creativity: ability to invent, explore, imagine new approaches, frameworks, or solutions; ability to stimulate ideas in self or others. • Questioning: ability to gather and interpret objective information through skillful questioning of individuals and groups. • Organizational astuteness: understanding individual sensitivities, power dynamics, relationships, and how the organization operates. This study did not determine whether the core competencies were unique to the human resource community. To the extent they might apply to other professionals in the organization, additional leverage might be gained by integrating them into staffing and development activities. Over and above the baseline competencies, a specific set of key competencies emerged for each role. These form the competency profiles shown in Table Six (competencies that are unique to a particular role are shown in bold type). Each profile includes the highest rated competencies for that particular role (the mean ratings range from 5.02 to 6.77). There are between six and nine competencies in the various profiles, depending on the natural breaks in the ratings. Page 14 Competency Implications of Changing HR Roles WP 94-31 Table 6: Competency Profiles – By Role2 Initiative Leader: Leadership: uses appropriate interpersonal styles and methods to guide and inspire individuals or groups toward task and goal accomplishment. Planning and Organizing: ability to identify options, and establish courses of action, goals, methods, and resources for self and others. Project Management: knows how to lead, plan, organize, prioritize, and monitor work projects. Persistence: ability to make repeated efforts to overcome obstacles. Goal Orientation: ability to enter situations and act with specific objectives in mind. Presentation: knows how to effectively present information in diverse circumstances. Group Process: understanding of group dynamics and ability to facilitate group process. Consultant: Organizational Analysis: understanding of the basic principles, methodologies, and processes of organizational analysis and change. Collaborative Problem-Solving: able to engage the talents of knowledgeable people or teams in problem solving. Anticipative Thinking: understands the likely consequences or implications of actions or events. Presentation: knows how to effectively present information in diverse circumstances. Objectivity: able to recognize the merits of different positions in conflict situations. Organizational Behavior: knowledge of organizational behavior theories and concepts, i.e., understanding of how organizations work. Conceptual: the ability to conceive ideas, patterns, images or relationships from limited data or elements. Strategist/Generalist: Business Strategy: knows business strategy HE Planning: knowledge of Kodak's human resource planning framework and processes, and how they integrate with business planning. Common Vision: ability to show how one's ideas support the organization's broader goals or values, or appeal to higher principles such as fairness. Vision: able to maintain strategic focus; projecting trends and visualizing possible and probably futures and their implications. Organizational Change: the skill to facilitate, initiate, support and/or manage effective organizational change consistent with organizational needs. Value Creation: understanding and awareness of where opportunities exist or can be made to exist, by which the community can deliver services that add value to the business. Competency Practitioner: Goal Orientation: ability to enter situations and act with specific objectives in mind. Anticipative Thinking: understands the likely consequences or implications of actions or events. Collaborative Problem-Solving: able to engage the talents of knowledgeable people or teams in problem solving. Planning and Organizing: ability to identify options, and establish courses of action, goals, methods, and resources for self and others. Analytical: able to systematically and rationally approach tasks, situations, or problems. Flexibility: can adapt positively to changes. 2 Competencies unique to a role are indicated in bold type. Page 15 Competency Implications of Changing HR Roles WP 94-31 Operational Support: Individual Counseling: knowledge of how to help individuals recognize and understand personal needs, values, problems, action alternatives and goals. Flexibility: can adapt positively to changes. Objectivity: able to recognize the merits of different positions in conflict situations. Interpersonal Awareness: ability to identify others people's concerns and to position one's ideas to address these concerns. Tolerance for Stress: able to maintain stability of performance under pressure and/or opposition. Use of Time: is able to effectively manage own time, and to manage demands on others so as to respect the value of their time. Computer: knowledge of computer systems and processes used at Kodak. Personal computer literacy. Policy Interpretation: the ability to develop acceptable decisions about the applications of Kodak policy on an operating level that adhere to the intent of the policy while allowing reasonable flexibility. HR Organization Leader: Leadership: uses appropriate interpersonal styles and methods to guide and inspire individuals or groups toward task and goal accomplishment. Role Model: able to demonstrate key HR capabilities through day to day behavior (for example, accountability, action orientation, continuous learning, customer focus, diversity, empowerment, integration, leadership.) Empowerment: ability to create an environment which encourages and enables individuals to exercise their personal power and talents, and take responsibility for their actions. Development of others: able to develop the competencies of teams or individuals, using a wide variety of methods and tools. Tolerance for Stress: able to maintain stability of performance under pressure and/or opposition. Common Vision: ability to show how one's ideas support the organization's broader goals or values, or appeal to higher, principles such as fairness. Coaching: knowing how to use effective approaches to help individuals in their job tasks. Feedback: able to provide information to individuals about their behavior and performance so that they can act on it. Personal Resiliency: ability to adapt to change or stress by articulating and committing to a personal vision, generating realistic alternatives to problems /situations, and exercising appropriate control. Page 16 Competency Implications of Changing HR Roles WP 94-31 In general, the competency profiles appear to be content valid (i.e., they seem to reflect the role descriptions and performance requirements) and to have face validity (i.e., they strike responsive chords with knowledgeable observers who did not participate in the study). The Organization Leader, for example, contains nine competencies anchored by leadership. Six of the remaining competencies are unique to this particular role, and all but one pertain to some element of supervision' (role model, empowerment, development of others, and the like). This may be contrasted with the Initiative Leader role, which is also anchored by the leadership competency, but which also contains three unique competencies--project management, group process, and persistence--which clearly reflect the lack of position power inherent in this particular role. Another interesting comparison is between the Strategist/ Generalist and the Consultant roles. The former's profile contains six key competencies. Five of these are unique to the role, and all have to do with integrating human resource activities into the business: knowledge of the business, vision, value creation, human resource planning, and facilitating change consistent with business needs. The profile for the Consultant role, on the other hand, contains seven key competencies, three of which are found only within this role: conceptual thinking, organizational analysis, and knowledge of organizational behavior theories and concepts. Thus, the emphasis is on managing change, without particular focus on the nature of that change. The Operational Support role profile is made up of eight competencies, five unique to the role. Consistent with the role definition, the focus is on individual counseling with a high level of interpersonal awareness and sensitivity to corporate policy. Also important are the effective use of time and computer literacy. Finally, the Competency Practitioner, or human resource specialist, role profile has six key competencies, five of which pertain to planning and problem solving; only one (analytical) is unique to this particular role. It should be remembered, however, that technical competence in human resource practice areas is assumed for this role. So, to a large extent, technical expertise is its fundamental distinguishing competency. Learnings The HR Competency Study helps translate perceived shifts in human resources into more tangible descriptions of how those shifts will play out in future work, roles, and behaviors. Taken in totality, the products of the study reveal a human resource environment remarkably different from the past. The bar is substantially raised on types of work activity, associated competencies, and required results. Page 17 Competency Implications of Changing HR Roles WP 94-31 Highlights of the key learnings from the current study include: 1) To meet higher expectations with fewer resources, human resource organizations will be required to invent new ways to accomplish traditional work, while taking on new responsibilities. 2) Successful human resource organizations will leverage their resources and talents in creative ways, using fluid teams and partnerships (internal /external) to get the total job done. 3) Human resource positions or jobs of the future will consist of various combinations of six or more key roles. 4) Business partnership will replace functional staff orientation. 5) External customer focus will replace internal focus. 6) Deeply rooted, unwavering principles and values will drive behavior. 7) On a platform of leading edge human resource technologies, human resource professionals will be called upon to lead and orchestrate change rather than preserve and institutionalize the past. 8) In the more fluid, less bureaucratic human resource organization, the Initiative Leader role will emerge as critical to managing ad hoc temporary project teams. 9) Consulting and organization development skills will be increasingly important for human resource success. 10) The role of strategist/generalist will emerge as key - and, perhaps, as the most critical one of all. 11) Technical specialists will look more like leading-edge consultants than protectors of traditional methodologies, relying heavily on the Competency Practitioner role. 12) The Operational Support (employee advocate and delivery) role will continue to be an important part of certain human resource positions or jobs. 13) Organization leaders will be less administrative, and more visionary and facilitative. They will become architects of environments where people work in empowered teams to leverage resources. 14) Continuous learning and adaptation will be key human resource survival skills. Page 18 Competency Implications of Changing HR Roles WP 94-31 Implications The shifts taking place in human resources are substantial, in both direction and velocity. They demand fresh approaches to the acquisition, development, and utilization of human resource talent. Some of the core competencies required are personal qualities rather than trainable skills. This suggests that core competencies may be particularly important criteria in staffing and selection processes, while the other more specific role competencies can be developed through education, training, and experiential development. But, the findings of this study are the beginning--not the end--of the journey. The challenge of building new capability in human resource organizations is formidable. Significant issues are raised in the areas of staffing, development, and leadership. Reward and recognition systems will need to be re-examined. Questions of resources and speed of change must be addressed. It is clear that carefully developed strategies are needed to design, implement, and integrate human resource practices within the human resource organization to facilitate the needed transformation. It is equally clear that mindset and culture change lie at the heart of the issue. But, in the face of the challenge to transform human resource capability; the needs of the business will also intensify and demand attention. For human resources, then, delivering "two acts in one" remains the play du jour. Page 19 Competency Implications of Changing HR Roles WP 94-31 Epilogue Because this competency study was prospective in nature, the data are viewed as directional rather than absolute. In practical terms, this gives license to modify and enhance the findings in the light of organizational experience, without pangs of conscience over scientific rigor. In fact, a number of changes have occurred since the completion of the study. For example, some of the names have been changed; for instance, the Strategist/ Generalist role has been separated into two parts to provide more clarity to the human resource/ business interface. Role descriptions have been enhanced to capture additional insights. The competencies associated with the Consultant and Initiative Leader roles have been determined to be sufficiently critical to human resource success that they have been assimilated into the core competencies. Extensive work has been done to explode the brief competency definitions into concrete behavioral markers that can be used in various assessment tools and instruments. In the process, improvements were made and competency gaps were filled to reflect evolving organizational circumstances and needs. These changes do not render the study any less valid or useful. To the contrary, post-study activities continue to reflect the essential discoveries of the study, expressed in more compelling ways, and operationalized into practical processes and tools. Finally, the long-term value of the study was enhanced because of the complementarity of mindset among the parties. Specifically, the CAHRS researchers were responsive and adaptable to the objectives and needs of the corporate practitioners, while the practitioners subjected a pressing organizational need to a systematic approach to discovery. In the spirit of collaboration and mutual inquiry, products and learnings were spawned that will endure long after the study becomes history. Page 20 Competency Implications of Changing HR Roles WP 94-31 Appendix A HR Vision I. Global Business Environment The following trends, forces, and conditions characterize the global business environment: • Formidable new competitors, playing by different "rules" on a global scale • Constantly higher expectations from customers for quality and service • Competitive advantage driven by quality, cost, innovation, flexibility, speed, and organizational learning • Global economy and marketplace, driving globalization of businesses and significant interdependencies • Shifting global demographics, with diversity of customers, markets, and labor force • Constant change, at an accelerating pace, for example: ♦ new technologies, and technological integration ♦ new competitors, markets, and products ♦ less stability in business conditions ♦ the way the world works (i.e., changing political map) ♦ shifts in economic power and conditions ♦ growing environmental awareness ♦ rapid global information flow • Emerging opportunities in non-traditional areas II. Eastman Kodak Business Environment In order to achieve sustained competitive success in the global business environment, the following trends, forces, and conditions characterize EK: • A strategic focus which leverages and integrates all organizational resources in pursuit of clear business directions and goals • Growth orientation based on investment and leadership in areas of competitive strength and advantage • Globalization of the business • New interdependencies (e.g., alliances, joint ventures, etc.) • Innovative shifts in approaches to corporate governance Page 21 Competency Implications of Changing HR Roles WP 94-31 • Transformation (non-incremental) of EK culture and technologies • Pervasive Quality Leadership facilitates continuous improvement as well as radical innovation • Long-term value creation achieved through: ♦ growth of new business, stimulated through internal transformations, integrative excellence, and a variety of external mechanisms (e.g., acquisitions, strategic alliances, mergers, joint ventures, etc.) manufacturing excellence ♦ leveraging of resources (internal and external) ♦ competitive innovation ♦ leveraging core competencies, core platforms, and competitive skills • Organizational values and principles are deeply embedded, and influence business decisions and organizational behavior • Change in the way the organization functions (e.g., new management processes for integration, new administrative systems) • Substantial changes in the way organizations and people work, e.g., ♦ customer focus ♦ impact of information technology ♦ pervasive teamwork and sharing of knowledge ♦ cross-organizational, extended business processes ♦ new work systems, work stations, work environments ♦ horizontal integration, networks, fluid linkages, virtual organizations, new forms of organizational glue ♦ new forms of "employment" ♦ an enabled, empowered work force ♦ new emphasis on leadership at all levels ♦ new emphasis on "do it and learn" (i.e., aggressive, purposeful, learningful experimentation) • Major business processes are re-engineered in significant ways to reflect customer focus and minimize infrastructure required to support the business • Given substantial "commoditization" of technology, the innovation and creativity of people become a critical competitive edge, and people are valued accordingly • Continuous improvement in cycle time in every aspect of work • Increased productivity in every aspect of the business, through optimization and leveraging of resources • Exploitation of information technology for competitive advantage • Technology greatly alters: ♦ decision-making ♦ communications Page 22 Competency Implications of Changing HR Roles WP 94-31 ♦ relationships ♦ work design, processes, and methods ♦ organization • Increasing amount of data requires new ways to cope with, manage, share, access, and leverage useful information. • Continuous learning is a key means by which individuals and organizations grow and leverage assets III. HR Business Environment The business environment (external and internal) has significant implications for the HR business. HR organizational capability reflects the following characteristics: Shared Mindset HR people demonstrate they believe: • HR contributes to a winning team committed to business goals • human resources are the only long-term source of competitive advantage • their professional work is critical and integral to business success • their individual work is part of an integrated system of practices, processes and policies which shape the performance of business organizations • the organization's shared values and principles must be reflected in all business decisions and activities • they are valued, enabled, and empowered to make a difference • they are collaborators in effecting lasting cultural change • they are a sensor of the external HR environment, and they position the organization to adapt, respond, and anticipate change • they are expected to be employee advocates while being business partners • Kodak people (and their circumstances) must be treated with utmost respect, fairness, sensitivity, and confidentiality • success of the business transcends individual or unit success • teams together can achieve more than individuals working apart • HR is a global community which leverages its diverse resources • urgency and rapid cycle time are critical to competitive advantage • good solutions do not have to be complex • it is important to transfer or build HR capability into the business • they are accountable for satisfying their customers with quality results • they are recognized and rewarded for their contribution • they are professionals who willingly share of themselves and their work • they are the best, becoming better • personal integrity is paramount • they share responsibility for their own development Page 23 Competency Implications of Changing HR Roles WP 94-31 • success requires continuous learning and improvement, e.g., ♦ learning by doing ♦ leveraged learning • mistakes are part of the learning process Leadership Roles • HR is a full and equal partner in the business, and plays a leadership role in creating value through integrated HR practices and systems. • The primary strategic role of HR is to: ♦ participate fully in development and execution of business strategy ♦ help build organizational capability for the business ♦ influence business leaders to anticipate, recognize, frame, and address strategic HR issues ♦ use change-management and intervention processes to facilitate organizational transformations • The primary operational role of HR is to: ♦ deliver quality HR practices, systems and services which facilitate the execution of ♦ business strategy ♦ assure a competitive, quality work force ♦ champion organizational values /principles in all business processes, practices, and ♦ decisions • HR creates a working climate (for itself and for the business) which: ♦ encourages and supports employee optimization ♦ facilitates and encourages continuous learning • Organizational capability requirements are fully deployed in HR units and HR work, enabling the HR community to model and lead others. • HR leads, supports, and models changes in the way work is done. • HR has the courage to stand firm for company values • Leadership exists at all levels, throughout the HR community - not as a function of position, but embodied in enabled, empowered people. Competencies • HR Generalists (increasing in number) are multi-experienced, multi-skilled individuals with strong business and strategic perspective, who are valued for their ability to influence business performance. • HR Specialists (decreasing in number) are valued for their expert knowledge and ability to develop and implement creative options and approaches within their area(s) of HR specialty. Page 24 Competency Implications of Changing HR Roles WP 94-31 • All are Integrators who possess a broad perspective on HR, and are additionally valued for their ability to integrate HR activities and resources (internal and external) to build organizational capability or address human and organizational issues. • HR is externally aware, driven by customer needs, and knowledgeable about the practices of competitors and premier organizations. • HR knows and accesses expert resources (internal and external), brings together the right parties, and facilitates the necessary integration to address issues, solve problems, and build organizational capability. • HR develops systems, practices, or programs internally only when it possesses the best or only competency to do so. • HR practices and systems are designed, integrated, and implemented in creative, powerful ways to enhance business outcomes. • HR builds the capability of organizations to be advocates of company values in all business decisions, but feels fully empowered to exercise leadership in addressing situations where values are at risk. • HR supports and promotes globalization of the business through HR practices and systems. Infrastructure and Management Processes • HR activities are driven as much by vision, shared mindset, values and principles as by formal structures and processes. • The fabric of the HR "organization" is flexible, fluid, and distributed (internally and externally), and is driven by the organizational requirements of the business. • The HR community is a model for other functions. HR aligns fully with its diverse businesses, yet has sufficient infrastructure, process, or "connective tissue" to assure that shared strategy, knowledge, initiatives and directions are continuously communicated and executed across worldwide HR delivery units. • The "corporate" HR team creates and maintains functional centers of excellence for key HR disciplines. However, the centers of excellence are changing and virtual in their design (i.e., not necessarily fixed or captive in a single organization, or within formal organizational boundaries). • Small HR teams are: ♦ embedded in the businesses, and provide a wide range of expertise ♦ networked or linked to many other organizations, through a variety of mechanisms, for purposes of ∗ leveraging centers of HR excellence and ∗ capitalizing on shared learning • HR teams are composed of: ♦ Generalists who manage and integrate HR practices and systems at the point of delivery Page 25 Competency Implications of Changing HR Roles WP 94-31 ♦ Specialists who have focused knowledge in particular disciplines, who operate at and behind the point of delivery • The career building process for HR includes: ♦ coordinated HR community processes ♦ planned movement in and out of HR and other business units ♦ planned movement within and among HR disciplines ♦ planned movement in and out of external organizations (public and private) • Movement for growth is required for all. Page 26 Competency Implications of Changing HR Roles WP 94-31 Appendix B Example of a Performance Requirement With Associated Behavioral Illustrations 4.2 Identifies, elevates, and addresses issues associated with managing organizational change and development. Basic Behavioral Illustrations A. Identifies, elevates, and addresses HR issues associated with managing organizational transitions. B. Transfers understanding and capability to others. C. Develops an understanding of the organization culture in order to be positioned to contribute to issue identification. D. Recognizes the variety of emotion and feelings within the organization. E. Assesses effectiveness of approaches used and provides honest feedback to peers of the utility of various approaches. Intermediate Behavioral Illustrations F. Adapts/designs HR practices and systems to support various types of organizational change, reflecting varying scope and complexity. G. Influences the design of communication strategies to shape attitudes, opinions, and mindset of the organization. H. Influences the organizational change process by persuading or influencing others (individuals or groups) to act, challenge paradigms. I. Links organizational change directly to organizational capability requirements (i.e., not change for change sake). J. Proactively addresses the feelings, emotions, passions of the change process. Advanced Behavioral Illustrations K. Designs, influences, or orchestrates processes to integrate or align cross-organizational, multi-level change dynamics. L. Designs strategies for facilitating long-term, fundamental behavioral and cultural change through a systematic array of processes, interventions, events, communications, experiences, etc. M. Designs, facilitates, implements, and adjusts strategies and processes to effect multiple levels of change within the organization. Page 27 Competency Implications of Changing HR Roles WP 94-31 HR Role Summaries Role: Initiative Leader General Description Role focus is to lead the development of an experimental, embryonic, or pilot human resource initiative, or guide a major initiative that requires significant attention and nurturing before mainstreaming into the organization. Key Characteristics of the Role • The customer is corporate or sector line management • The initiative requires integration of multiple human resource practices • The initiative has a beginning and an end • The initiative involves a multi-year effort and/or major scope (at sector level or above) • Resources required for the initiative are not owned; internal and external resources are leveraged • The initiative contains a research /learning component • The initiative can have an internal or external driver • The leader develops effective networks and relationships throughout the organization, unconstrained by organizational hierarchy or boundaries • The leader develops organizational enthusiasm, ownership, and alignment relative to the initiative • The leader manages the entire project, coordinating all aspects of complexity • The leader prepares the initiative for assimilation into the fabric of the organization • Initiative examples include diversity, work-life strategy, Twenty-First Century Learning Challenge Page 28 Competency Implications of Changing HR Roles WP 94-31 Role: Consultant General Description Role focus is to use broad business perspective, human resource practice knowledge, and expert process skills to assist individuals and organizations in discovering needs, options, and solutions related to human and organizational issues. Key Characteristics of the Role • Regardless of organizational affiliation, "acts as if" consultation is an objective, third-party intervention when playing this role • The consultation has a beginning and an end • "Contracts" with the client • Consultation is broader than one human resource practice area • Uses action-research methodologies (i.e., assess; diagnose; develop data; assist others to discover the problems or issues, develop options, formulate solutions, etc.) • Facilitates client self-discovery through data sharing, process, challenge, questioning, etc. • Partners with a variety of resources (e.g., generalists, specialists) to address issues Page 29 Competency Implications of Changing HR Roles WP 94-31 Role: Strategist/Generalist General Description Role focus is to participate as a full partner on the business management team, design and implement strategic human resource practices and systems to build organizational capability, and manage human resource practices and services at the point of delivery. Key Characteristics of the Role • Functions not as staff, but as a full partner on the business management team • Engages business partners in self-discovery processes to anticipate, recognize, frame, and address organizational capability issues, and build HR strategies • Brings a strong business and strategic perspective to human resource management • Seeks systemic approaches to improving human and organizational performance • Thrust of activity is strategic development, integration and implementation of multiple human resource practices, processes and services • Ensures tactics to support and execute strategy • Assures delivery of quality human resource practices which facilitate the execution of business strategy • Aligns human resource strategy and operations with business needs • Integrates employee advocacy with business needs, with emphasis on decisions and actions which promote both business success and employee well-being. • Partners with and leverages a variety of resources, working in networks and matrices, and across organizational or functional boundaries to achieve goals • Requires a proactive, future-thinking, anticipatory, change agent • Uses change-management and intervention processes to facilitate organizational transformations • Facilitates changes in culture to support organizational values Page 30 Competency Implications of Changing HR Roles WP 94-31 Role: Competency Practitioner General Description Role focus is to find, develop or implement creative options and approaches within area(s) of human resource specialty, drawing upon diverse internal and external resources, and applying a broad, integrative human resource and business perspective. Key Characteristics of the Role • Assures that state-of-the-art human resource competency is readily available to the business • Possesses a broad perspective on human resource • Knows the external environment, the business context, and the strategies of the business • Aligned with the needs of the business • Develops strong partnerships and relationships with multiple external resources • Cultivates links to best practice, internally and externally • Accelerates the flow of knowledge and technology to the point of need • Brings to the table the best resources from diverse suppliers (internally and externally) - with no compulsion to own or control knowledge and technology • Brings together the right parties, and facilitates the development of creative, robust options • Seeks to collaborate and integrate with other functional specialties to build synergistic human resource systems and solutions • Assures implementation of quality human resource processes and practices • Assures a seamless flow of knowledge and human resource technology across suppliers and customers • Resourceful in providing expertise while seeking best value • Proactively seeks, acquires or develops new ideas, concepts, options, knowledge in specialty area(s) • Knowledgeable about the human resource practices of competitors and premier organizations • Works collaboratively across organizations to leverage company expertise and resources Page 31 Competency Implications of Changing HR Roles WP 94-31 Role: Operational Support General Description Role focus is to provide broad operational support for human resource work and processes, and work closely with employees to meet their human resource transactional or company-related needs. Key Characteristics of the Role • Serves as a primary operational human resource interface with employees (i.e., individual contributors and supervision), and external customers • Provides operational support for delivery of human resource processes • Delivers a variety of services (e.g., employee counseling, employment interviewing, program administration, etc.) • Develops, plans and executes administrative processes in support of human resource work • Initiates continuous improvement in human resource operations • Anticipates and takes action on human resource issues • Through frequent employee contact, senses the environment, understands and raises employee issues • Plays an employee advocacy role in operational activities • Utilizes diverse information systems to accomplish work of the unit • Knows policies, procedures, and practices, and helps people with interpretations of policy or prevailing practice • Knows where to find resources and information throughout the organization • Knows how to get things done through accessing and leveraging resources, and incorporating them into the work being done • Networks with peers to share information and build a resource base • Brings strong interpersonal skills (individual and group) to human resource work Page 32 Competency Implications of Changing HR Roles WP 94-31 Role: Human Resource Organization Leader General Description Role focus is to orchestrate individuals, teams, structure, processes, and resources in human resource units consisting of multiple/ diverse functions and roles, or specialized human resource practices or functional services. This role could have significant variance in terms of scope and impact, for example, • corporate • business sector or group • business • geography • division or sub-unit Key Characteristics of the Role • The focus of this role is the human resource unit itself • Visionary leadership is a critical element • Drives the development, communication, and implementation of shared vision, mission, and strategies of own human resource group. • Promotes alignment and commitment to business goals Facilitates teamwork and cooperative action • Builds organization capability internally (i.e., human resource excellence) to assure the unit is fully equipped to achieve its mission • Inspires, energizes, and mobilizes unit members and teams to peak performance • Runs a successful, cost-effective human resource business, assuring that human resource is a value-adding organization • Creates and stimulates a learning environment for group members • Continually prepares the unit for tomorrow's changes and challenges • Acting as catalyst and facilitator, leverages and integrates resources across organizations • Integrates and harmonizes the organization's activities with business partners (horizontally and vertically) • Champions and models the values and principles of "organizations of stake" (i.e., own unit, the larger group, and the company) • Facilitates and coordinates human resource processes for own unit(s) (e.g., team development, capability building, succession planning, communications, work design, etc.) Page 33 Competency Implications of Changing HR Roles WP 94-31 References Boroski, John W. 1990. 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