Exploring the Zone of Synergy (ZoS) and levels of maturity of cooperation between Organizational Development (OD) and Strategic Human Resources Management (SHRM)
Cybersecurity Awareness Training Presentation v2024.03
Organizational Development and SHRM_Zone of Synergy
1. THE SYNERGY BETWEEN ORGANIZATIONAL
DEVELOPMENT (OD) AND STRATEGIC HRM
CHARLES COTTER PhD, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
PROTEA O.R. TAMBO. KEMPTON PARK
5 JULY 2019
2. THE ZONE OF SYNERGY (ZoS) BETWEEN
OD AND SHRM
OD SHRM
ZONE OF SYNERGY –
FUTURE-PROOFING
ORGANIZATIONS
1. Data collection
2. Diagnosis & Analysis
3. Action Planning
4. Targeted & customized
Interventions
5. Monitoring, Evaluation
& Reporting
Sustainable competitive
advantage
Proactive, responsive & agile
environmental scanning
Future-focused
Full-fledged & legitimate
Governance Framework
(Vertical) Alignment &
(horizontal) integration
TRANSFORMATIONAL GOAL:
ORGANIZATIONAL EFFECTIVENESS
TRANSFORMATIONAL GOAL:
ORGANIZATIONAL COMPETITIVITY
3. THE ZONE OF SYNERGY BETWEEN OD AND
SHRM
• OD:
1. Data collection
2. Diagnosis and Analysis
3. Action Planning
4. Targeted and customized Interventions
5. Monitoring, Evaluation and Reporting
• SHRM:
Sustainable competitive advantage
Proactive, responsive and agile environmental scanning
Future-focused
Full-fledged and legitimate Governance Framework
(Vertical) Alignment and (horizontal) integration
• Transformational Goals:
• Organizational Effectiveness and Competitivity
• Zone of Synergy:
• Future-proofing
4. STRATEGIC HUMAN
RESOURCES
MANAGEMENT (SHRM)
• SHRM is defined as an approach to
managing people that deals with how
the organization’s goals will be achieved
through its human resources by means
of integrated HR strategies, policies and
practices (Armstrong, 2016).
• SHRM propositions:
The HR of an organization play a
strategic role in it’s success
Human capital is a major source of
competitive advantage
It is people who implement
business strategy
A systematic approach should be
adopted to planning and
implementing HR strategies
HR strategies and plans should be
integrated with business strategies
and plans
5.
6. THE SYNERGY BETWEEN OD AND SHRM –
OD FOCAL POINTS (Cotter, 2019)
• Culture –
HIPO
• Structure –
Lean
• Processes –
Agile
• Systems –
Digital Intelligent
• People –
Future-fit and Engaged Brand Ambassadors
8. 10 LESSONS THAT SHRM CAN LEARN
FROM OD PRACTICES (Cotter, 2019)
• #1: Scientific methodology
• #2: Measurement culture
• #3: Behavioural Economists
• #4: Solutions-focused
• #5: Apply Systems Thinking
• #6: Specialization – “Multi-taskers to Task Masters”
• #7: Change Advocates and –Champions
• #8: Collaborative Consultant (Strategic Facilitator)
• #9: Evidence-based HRM
• #10: Cutting-edge Operating Model
9. 6 HIGH PRIORITY
STRATEGIC HRM
OBJECTIVES AND
RELATED ROLES
• #1: Attract, acquire and select top talent - promote a
competent and competitive workforce i.e. quality of hire;
Role: Cognitive and Intelligent Talent Broker
• #2: Transform to a digitally-enabled HRM operating model and
design an automated Knowledge Management System;
Role: Strategic Performance Advisor (SPA)
• #3: Future-proof the organization, by developing a
measurement culture and generating real-time predictive
business analytics and –intelligence;
Role: Digital Futurist and –Analyst
• #4: Develop an agile High Performance Organization (HIPO)
culture and a high level of employee engagement;
Role: Behavioural Economist
• #5: Mainstream HRM into core business processes, by offering
business valued solutions to key organizational problems
Role: Innovative solutions architect
• #6: Develop a HRM Governance framework, processes,
principles and promote an ethical organizational culture,
espousing and enacting core company values.
Role: Advocate, Custodian and Steward of governance and ethics
10. BUSINESS INTELLIGENCE
(Level 3 of strategic HRM maturity –
transformational)
HRM STRATEGY
(Level 4 of strategic HRM maturity –
strategic)
HRM GOVERNANCE
(Level 1 of strategic HRM maturity –
traditional)
WORKPLACE ADVOCACY
(Level 2 of strategic HRM maturity –
transactional)
STRATEGIC
PERFORMANCE
ADVISOR
(Cotter, 2019)
STRATEGIC
TRANSACTIONAL
CURRENT FUTURE-FOCUSED
FRAMEWORK
PREDICTIVE
ANALTYTICS
11. STRATEGIC PERFORMANCE ADVISOR (SPA) –
4 PIVOTAL POINTS (COTTER, 2019)
• HRM Strategy (e.g. embedding HR strategy into business strategy; the use of
strategy maps; adopting a strategic mindset and applying strategic management
principles and processes) - strategic/future-focused;
• Business Intelligence (e.g. competitive predictive HR metrics and analytics; future-
proofing the business model; creating HIPO; applying evidence-based HRM;
knowledge management and trouble-shooting solutions architects)
strategic/current;
• Workplace Advocacy (e.g. Employee engagement; employee voice; employee
retention; succession planning; creating a workplace culture of ambassadors;
mainstreaming HRM and future-fit employees) - transactional/future-focused and
• HRM Governance (e.g. HR policies and procedures; HR/people risk management,
compliance with ethics and King IV corporate governance principles and -Human
Capital reporting and HR Auditing) - transactional/current.
12.
13. 7-POINT HRM TRANSFORMATION
(COTTER PhD, 11 JANUARY 2019)
• "In order to be feasible, to prosper professionally in
2019 and to be future-fit, HRM will have to exchange
the currency in which they trade from old notes to
noteworthy, Industry 4.0 and business relevant
denominations and value. Specifically, this change
translates from:
• feelings to facts;
• from anecdotal to analytical;
• from hindsight and insight, to oversight and foresight;
• from intuition to intelligence;
14.
15. 7-POINT HRM TRANSFORMATION
(COTTER PhD, 11 JANUARY 2019)
• "In order to be feasible, to prosper professionally in 2019
and to be future-fit, HRM will have to exchange the currency
in which they trade from old notes to noteworthy, Industry
4.0 and business relevant denominations and value.
Specifically, this change translates from:
• from best practice (imitation) to next practice (innovation);
• from a cost to a profit centre and ultimately,
• from a business tributary to mainstream.
• Generally, this 7-point transformation means an upgrade to
Evidence-based HRM."
16. STRATEGIC HRM
“One of the mission-critical strategic HRM objectives
is to mainstream HRM into the core business
processes. HRM should be embedded in the business
strategy and their value proposition should be
ingrained in the organizational culture fabric. Key
business decisions should not be taken in the
absence of consulting with HRM.”
(Cotter, 2018)
AGREE OR DISAGREE?
WHY?
17. EVIDENCE-BASED HRM
• Evidence-based HR refers to a process in which the
organization evaluates any decision or process
against data, real experience, expert opinions,
and/or other types of information to ensure the
decision is likely to have the desired outcome.
• For this to work best, the “evidence” used should
be purposefully sought out.
• When data is taken from multiple sources, ensure
it’s applicable within your context.
21. DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR SPA
• https://www.surveymonkey.com/r/BXRKRXG
• #1 Embedding HRM strategy in business strategy and able to translate that
strategy into deliverable actions
• #2 Well-defined, implemented and reported HRM performance and ROI metrics
(creating credibility and accountability)
• #3 Generating business intelligence e.g. predictive and strategic analytics (that
shapes, informs, guides and ultimately, influences strategic business decisions)
• #4 Offering a professional, value-adding business proposition sensitive to and
supportive of business needs, interests and strategic priorities
• #5 Ongoing line management consultation, engagement, coaching and building
trusting, collegial and mutually beneficial business relationships
22. DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR SPA
• #6 HR Management and practitioners possess business and industry knowledge,
acumen and insight
• #7 HRM collaborates with line management to broker meaningful and impactful
business solutions
• #8 HRM processes, systems and practices are horizontally integrated (bundled),
agile, responsive and stream-lined (that enhance productivity and efficiency)
• #9 HRM is a transformational initiator, driver and implementer of business
change
• #10 HRM is technology-savvy innovator, enabling and leveraging best practices
(e.g. CoE; Shared Services and e-HRM)
• https://www.surveymonkey.com/r/BXRKRXG
23. LEARNING
ACTIVITY
• Group discussion:
• Critically review and evaluate your current
HR performance advising processes and
function against the ten (10) best practice
criteria. Refer to the link:
https://www.surveymonkey.com/r/BXRKRX
G
• Group Discussion:
• Identify gaps and recommend improvement
strategies.
• Refer to the research findings:
https://www.slideshare.net/CharlesCotter/m
easurement-and-diagnosis-of-the-strategic-
impact-and-value-of-selected-african-hrmld-
practices-a-surveybased-studyresearch-
findings
25. STRATEGIC PERFORMANCE ADVISOR (SPA)
– WIDEST COMPLIANCE GAPS
Range Median Mean Standard Deviation
11-100% 61%
62.0%
17%
BEST PRACTICE CRITERIA RELATIVE DIFFICULTY
RANKING
MEAN SCORE
Q2: Your organization's HRM function has well-defined,
implemented and reported HRM performance scorecards and ROI
metrics (creating credibility and accountability)
1 50%
Q3: Your organization's HRM function generates business
intelligence e.g. predictive and strategic analytics (that shapes,
informs, guides and ultimately, influences strategic business
decisions)
2 50%
Q10: Your organization's HRM function is technology-savvy
innovator, enabling and leveraging best practices (e.g. CoE; Shared
Services and e-HRM)
3 53%
26. STRATEGIC PERFORMANCE ADVISOR (SPA)
– MOST COMPLIANT CRITERIA
BEST PRACTICE CRITERIA RELATIVE
DIFFICULTY
RANKING
MEAN SCORE
Q4: Your organization's HRM function offers a
professional, value-adding business proposition
sensitive to and supportive of business needs,
interests and strategic priorities
10 65%
27. OVERALL FINDINGS – VALUE CHAIN
FUNCTIONS 1-6
HRM/L&D Value chain
process
Number of
respondents (N)
Mean Score Relative
Difficulty
ranking
Standard
deviation
Level of Strategic Maturity
#1: Strategic
Performance
Advisor (SPA)
267 62.0% 8 17% Level 2 (Transactional)
#2: Strategic HRM
Planning
133 60.0% 5 12% Level 2 (Transactional)
#3: HRM Metrics and
Analytics
196 53.5% 1 13% Level 2 (Transactional)
#4: Strategic Total
Rewards Management
(STORM) – Principles &
Best Practices
155 60.4% 6 16% Level 2 (Transactional)
#5: Skills Auditing 149 57.1% 2 13% Level 2 (Transactional)
#6: Strategic
Learning Partner
154 64.6% 10 14% Level 2 (Transactional)
29. OVERALL FINDINGS
• Only x2 of the total scope of the study of x12 HRM value chain
functions exceed the mean score threshold of 65% (level 3 of
strategic maturity - transformational HRM), namely:
• Succession Planning (71.7% - N = 116) and
• Future Fitness of HRM/L&D Pro's (66.8% - N = 203)
• The average of these x12 HRM value chain functions is 61.4% (level
2 of strategic maturity - transactional).
“Seemingly, current HRM practices are administrative, compliance-
driven and transactional and not strategic, commitment-driven and
transformational.”
(Cotter, 2018)
32. EXPECTATIONS AND PRIORITIES OF
BUSINESS EXECUTIVES
• CEO’s expect the Human Resources function to play a
much more active and participatory role in enabling
business strategies.
• Senior business leaders consider talent to be perhaps
the critical factor in the push for sustainable growth
and the need to manage new opportunities and risks
in a more complex and interdependent world.
• According to The Conference Board CEO Challenge
(2013), Human Capital is rated 10% higher than
operational excellence as a major challenge for
businesses.
33. WHAT BUSINESS EXECUTIVES
ARE LOOKING FOR IN HRBP?
• #1: Catalytic Driver of Change
• #2: Pro-active Business Thinker
• #3: Collaborative Consultant
• #4: Purpose-directed Coach
• #5: Delivery (results-oriented HR
practices)
• #6: (Credible and Accountable)
Performance Advisor
• #7: Strategic Facilitator
39. CHANGE MESSAGE TO HR MANAGERS
(Cotter PhD, 2018)
"HRM must be instrumental in and at the
forefront of the I-Q-C-A-P drivers of business
performance, namely: Innovation; Quality;
Compliance; Agility and Processes (to optimize
productivity), in their quest to transform and
actualize to become strategic performance
advisors."
40.
41. STRATEGIC CHANGE AGENDA - IMPROVEMENT
RECOMMENDATIONS – SPA (COTTER, 2017)
• #1: Transition from transactional to transformational HRM;
• #2: Transition from a cost to a profit centre;
• #3: Acquisition of more advanced, business relevant skills by HR
Professionals;
• #4: Migration from manual to automated/digital HRM – 1G to 4G
technology;
• #5: Migration from fundamentals of people science to the
complexities of data science and
• #6: Transition from administrative expert to strategic
performance advisor.
42. HRM TRANSFORMATION
• According to Grobler (2014), HRM transformation:
• “One of the required transformations is that HR
professionals should build their own capacity and
competence into executive business and HR
strategies.
• In particular, higher HR skill is required in the areas
of leadership, governance, remuneration and
training.”
43. ACTION STEPS/PLAN TO
TRANSFORM HR INTO A SPA
• Step 1: Strategic Review and Analysis
• Step 2: Strategic Role Clarification and
Contracting
• Step 3: Formulation and Development
of Transformational Strategies
• Step 4: Implementation of
Transformational Strategies
• Step 5: Measure and evaluate
business impact and results
44.
45. DIAGNOSTIC TOOLKIT – 13 TOOLS TO MEASURE THE
STRATEGIC IMPACT AND VALUE OF HRM/L&D
• Strategic Performance Advisor
https://www.surveymonkey.com/r/BXRKRXG
• Strategic HR Planning
https://www.surveymonkey.com/r/5SNGNTW
• HRM Metrics and Analytics https://www.surveymonkey.com/r/XBSFY53
• Strategic Total Rewards Management (STORM)
https://www.surveymonkey.com/r/PQWGNJJ and
https://www.surveymonkey.com/r/PHKFGQL
• Skills Auditing https://www.surveymonkey.com/r/5RDYSFT
• Strategic Learning Partner https://www.surveymonkey.com/r/VW6NC5W
46. DIAGNOSTIC TOOLKIT 13 TOOLS TO MEASURE THE
STRATEGIC IMPACT AND VALUE OF HRM/L&D
• Ethics of African-based Trainers
https://www.surveymonkey.com/r/5B7XLPD
• HRM Auditing https://www.surveymonkey.com/r/B3PYYCT
• Future Fit HRM/L&D Consultant
https://www.surveymonkey.com/r/8HVNTW3
• Succession Planning https://www.surveymonkey.com/r/J7S6VSH
• Job Analysis and -Profiling
https://www.surveymonkey.com/r/732GHMP
• Performance Management
https://www.surveymonkey.com/r/3GXW72Z
48. CONCLUSION AND WAY FORWARD
• Seemingly, the diagnosis of the current strategic HRM and L&D practices and their future-
fit status doesn't look promising.
• As a matter of urgency, CHRO’s and CLO’s and -professionals need to seriously address
some of the strategic deficiencies (identified by means of the mini surveys) throughout the
respective value chain functions and implement the recommended improvement
strategies to graduate from a transactional (level 2 of maturity) to strategic performance
advisors and strategic learning partners (level 4), respectively.
• Failing this the prognosis of the future-proofing of the HRM/L&D professions appears very
bleak.
• “Based on my research, I anticipate that the next 6 years culminating in 2025 will be a
profession-defining time period for Human Resources Management (HRM) practices. In
retrospect and reflection, it will either be regarded as a golden era in which HRM was able
to transform to a Strategic Performance Advisor (i.e. yardstick of excellence) or worst-case
scenario, be the age of HRM extinction (i.e. graveyard of mediocrity). Metaphorically,
either Jurassic Park (resting place) or Disney World (podium place).”
(Charles Cotter PhD, 28 February 2019)