Red tag

Red tag

• 1.
  Intelligent Rightsizing Shaping businesses into better competitors: The strategic HR Management challenge Imran Ahmad Head – HR Strategic HR REDTAG Group 1 challenges
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  Session Objective: Provide balanced practices for work force rightsizing which limits Business risks and optimize strengths Strategic HR 2 challenges
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  MR. BOSS Strategic HR 3 Challenges
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  Shareholder Expectation Show me the Money ! MM P&L Elements Currency % Sales Turnover 100 100% Cost of Sales 65 65% Gross Profit 35 35% People Cost 15 15% Other Expenses 5 5% Net Profit 15 15% Strategic HR 4 Challenges
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  Let’s see howto help: •Facing the Market Realities •What is Rightsizing •The available options •Balancing rightsizing •Right Leadership •Practices & Behaviour •Critical success Factors •Wrap Up Strategic HR 5 challenges
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  Survival Strategy : Competitive repositioning MR. BOSS Strategic HR 6 Challenges
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  Creating Business Value Mr. Boss & the Market realities Strategic People Capability Survival Efficient Organisation Kit for Structures Business Operational Effectiveness Organisational Culture Focus on Core Competence Strategic HR 7 challenges
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  Rationale for rightsizing Mr. Boss’s Strategy: Rightsizing ‘Too large shoes rub blisters , too small shoes cause corns ‘ -Unknown Strategic HR 8 challenges
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  Rightsizing options What is Rightsizing ? Business Evaluation of Focus on Core Portfolio operational Competence Analysis Effectiveness Internal Headcount & Internal Process Structure Role Re-Examination revamp Rationalisation Strategic HR 9 challenges
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  Choosing the change The usual options Internal Structure Headcount & Role revamp Rationalisation MR. Strategic HR challenges BOSS 10
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  Balancing rightsizing Don’t yank the wheels off ! Revenue Support Structural Functions Services Functions Re-Align workforce Re-engineer Reduce dispensable . Competence inefficient processes Retain valuable Adopt considered Consolidate Services Freeze Hiring Hiring , Reduce Roles Redesign Consolidate Reduce unnecessary compensation operations/ locations hierarchy Competitive Organisational Structural Outsource / Reduce Capability Agility Implement multi- Competence Right-size the Non-core activities tasking & job sharing Expense structure Leverage Technology Reduce Non Performers Consider voluntary redundancy/ retirement Strategic HR 11 challenges
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  Managing Change The Right Leadership Company Leadership ( Led & facilitated by HR ) Identify Vision , Plan and expected Goals Identify the suitable rightsizing choices Determine scope of the implementation Communicate to and Align people Evaluate potential costs Prepare communication plans Prepare survivor plans Strategic HR 12 Challenges
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  Practices & Behaviours Respectful Departure Communicate facts Complete detailed Plan well & provide honestly Documentation notification period Provide reasonable Treat people with Choose Right timing severance package dignity during the year Strategic HR 13 Challenges
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  Practices & Behaviours Ensure Retention Training Reemphasize the Introduce efforts to Make leaders visible company vision & enhance competence and supportive goals & skills during rightsizing Monitor and track Develop a culture of Create engagement the deployment of Accountability & Events and ensure a future plans rewards culture of Zeal Strategic HR 14 Challenges
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  Critical Success Factors Avoiding pitfalls Action Strong HR Honest Planning Leadership Communication Proper Cost-benefit investments Analysis Strategic HR 15 challenges
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  A live Example StrategicHR 16 Challenges
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  Rightsizing example KSA :2010-2011 Automotive industry Background Rightsizing driven by Sustained losses Better balance sheet mngmt, Build capability , Create Strategy accountability , strengthen market leadership Drive Sales Volume Focus on Rightsizing Renegotiated Key drivers : new Credit & Initiatives Loans & interest Skills , incentives Collections Introduced New Talent Made Roles Optmised Org. New Comp & Redundant structure Ben structure Unit CSI Service Functional Trackers Inventory Volume scores KPIs KPIs A new Higher unit Satisfied Outcomes Profits business Volume customers Strategic HR unit 17 Challenges
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  Limiting Risks Optimising Strengths A Quick Summary Strategic HR 18 Challenges
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  Wrap Up Winning Likely Quick Summary Potential Risk StrategiesStrengths There are several areas for rightsizing- Emotional Process choose most appropriate Efficiencies costs Ensure proper due diligence for short-& Process Optimised long term associated costs . disruption Structures Strong Leadership is key to achieving Re-tooling Capability desired rightsizing benefits Costs bandwidth Best practice behaviour will ensure Organisational Higher Cash talent retention and performance Culture Stress flows Strategic HR 19 challenges
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  Strategic HR 20 Challenges