Case Studies using the Strategic Human Resource Management Framework

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Agency Case Study 1

Description of the agency

This is a small agency with around 150 employees and an operating budget of approximately $15m. All activities are based in one location in the city. The HR Manager reports to the Director of Corporate Services.

The Business Issues

Over the next 1-2 years, this agency will be making major changes to the way it delivers its current services. The agency will be streamlining all processing and technical operations using new systems and technology and possibly outsourcing some activities. The business focus will be on responsiveness to customers and efficiency. The agency is also considering introducing new products and services.

These changes are necessary if the agency is to provide a service which is competitive by industry standards and meets the increasing expectations of customers.

At the same time this agency faces continuing uncertainty due to possible changes in legislation and Government direction.

What the agency wanted to achieve using the framework

The HR Manager wanted to use to framework to determine the critical HR management strategies required to support the business direction. This was to involve both managers and HR staff to achieve an organisational position.

The HR Manager believed the current HR management agenda (based on the HR management initiatives in the agency’s strategic direction) did not adequately reflect the real business issues. There was a long list of HR projects which were not prioritised.

The HR Manager also want to use the external consultant to obtain the views of the Chief Executive Officer, directors and managers on what HR issues they saw as important.

This exercise was timely as the agency was about to review its strategic direction and the Chief Executive Officer had just been appointed.

Methodology

Planning meeting

An initial planning meeting was held with the HR Manager and the consultant to agree on the methodology, to brief the external consultant on the agency and its approach to the management of human resources.

The methodology was deliberately low key and designed to build alliances and a partnership between human resources and managers, resulting in a joint commitment to tackle the most important people issues.

Assessment

The consultant met with the HR staff to assess the current situation, using the framework as the basis. Relevant documentation was also provided to the consultant such as business plans, HR policies, and the recent Organisation Diagnostic Survey.

The consultant interviewed the Chief Executive Officer and each director to obtain their views on the key business issues facing the agency and the degree of alignment between the HR and these issues. Again the framework provided the basis for discussion. The consultant also held two focus groups with third level managers.

The Office of the Public Sector Standards Commissioner had recently completed an audit of the agency, which covered most of the issues relating to external reporting.

Analysis

A written report was prepared by the consultant for the HR Manager. The report summarised the business issues and highlighted the gaps in alignment, using the framework as a basis.

Action planning

A half day workshop was held with two directors and the two senior HR staff, facilitated by the consultant.

During this workshop the group considered the report and reviewed the current approach to HR management. The group then agreed on the critical business issues and the HR implications. There was agreement that the way people issues were managed could "make or break" the success of the business strategy.

The group agreed on five HR strategies which would be the focus for 1998/99. A one page summary of the business issues and HR strategies was prepared. This enabled managers to immediately see the alignment and the links between the different strategies.

This led to refocussing the Enterprise and Workplace Agreements to ensure the improvement strategies align with the HR strategy and facilitate the business direction.

The HR Manager met with the Chief Executive Officer to discuss the action plan. A meeting was held with the Executive Team and the HR strategies were agreed in principle. These strategies are at present being considered in a review of the agency’s strategic direction.

The intention is for the Executive Team to agree on an implementation plan which will involve HR and business managers taking joint responsibility for the implementation of the strategies. Changes are currently being made to the HR structure and the role of the HR Manager to ensure the successful implementation of the HR strategy.

The HR Manager now attends Executive Team meetings whenever HR issues are on the agenda.

Comments

The timing of this exercise was important. The business issues were clear and there was recognition of the need for major organisational change. The HR Manager now has a capable team ready to work on the HR strategy.

The framework was a useful assessment tool and a way of communicating a broader role for HRs and how HRs can contribute to the success of the agency.

The exercise enabled HR to be seen as strategic thinkers, forward looking and preparing the agency to successfully implement its business strategy. This moves away from the reactive, policing and problem solving perception of HRs. It was also valuable for the agency to have an independent assessment of its HR approach.

SOURCE: http://www.dpc.wa.gov.au/psmd/pubs/exec/framework/casestud/agency1.html

 

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Agency Case Study 2

Description of the agency

This agency is one of the larger public sector agencies with approximately 900 employees and an operating budget of approximately $386m. The agency has a diverse range of operations that are spread over several metropolitan and country locations. The HR Manager reports to the Director of Corporate Services.

The Business Issues

In the last two years this agency has doubled in size with the transfer of functions from another agency.

There will continue to be changes to the Department’s services and business processes during the next year. This will streamline services using technology and making them more accessible to customers. Some services will be integrated and provided from one centre. The agency also intends to test services in market for competitiveness.

These changes will impact on the structure and work practices in business units and will require changes to job roles and new skills. There will also be a need for strong leadership at all levels through the change process.

The agency is about to introduce a business planning process to support the strategic direction.

What the agency wanted to achieve using the framework

The HR Manager wanted to use to framework to obtain feedback from key stakeholders on what their business issues were and whether the current HR strategy would meet their needs.

This would provide a strategic focus and complement feedback from recent workshops where customers were asked to comment on HR services.

The exercise was timely as the HR Manager was about to revise the HR structure and prepare the HR business plan for the next 12 months.

Methodology

Planning meeting

An initial planning meeting was held with the HR Manager and the HR team to agree on the purpose of the exercise, discuss the Framework and its elements and decide on process.

Assessment

The emphasis in the methodology was on interviews with HR staff and a representative of the Senior Management Team in each Division, as well as a review of documentation.

Analysis and action planning

A written report prepared by the consultant was in two sections. One was an assessment based on the issues prompts. The second provided a summary of each Division - its business issues, the workforce implications and comments on the current HR approach.

A presentation was made to the HR Manager and the Executive Director of Corporate Services. A second presentation was made to the HR team.

During these sessions the current HR strategy was discussed. The feedback from the Chief Executive Officer, directors and managers was very positive about current HR approach, particularly relating to performance management, training and development, and leadership.

The feedback provided the HR team with a summary of the main workforce related issues requiring attention over the next year.

The main gap in alignment related to resourcing and the need for flexibility. The HR Manager and team were well aware of this situation and had already considered options.

Comments

Again, the timing of this exercise was important. Over the last twelve months the HR Manager had concentrated on improving systems and streamlining HR processes, using technology. This has freed up staff and positions which can now be directed towards higher value activities.

The HR team is now in a position to work more closely with business units to address their specific needs. The structure is currently being changed to provide a HR consultancy service to each program area. This will be supported by on-line access to HR information and services.

SOURCE: http://www.dpc.wa.gov.au/psmd/pubs/exec/framework/casestud/agency2.html

 

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Agency Case Study 3
Description of the Agency

This is a small agency with around 80 full time staff, and an operating budget of $6 million. Most staff are located within the city, with a regional office in the north of the State.
The HR Manager reports to the Director of Corporate Services

The Business Issues

The agency is undergoing significant change. A recent government review has signalled potential major changes in the way services are delivered, structured and organised. The nature of work could change, affecting operating hours, and support services within the agency.

What the Agency wanted to achieve using the Framework

One of the Senior Line Managers wanted to use the framework to review the "current state" of HR practice within the agency and also evaluate the extent of alignment between the HR function and the organisations business requirements. He also wished to gauge the current organisational climate in relation to the major changes that were occurring.

Methodology

Planning Meeting

An initial meeting was held between the Senior Line Manager, the Chief Executive Officer and the consultant, to both brief the Chief Executive Officer and agree upon the methodology. A small ‘Steering Group’ of the Line Manager, HR Manager and consultant was formed to select individuals to be interviewed and to manage the process.

Assessment

The consultant met with middle and senior managers, either individually or in groups, to assess the current situation using the framework as the basis for information gathering. Relevant documentation was also provided to the consultant, such as the annual report, strategic plan, enterprise agreements, government review papers, etc.

The consultant used the framework to interview the individuals and groups. Due to the large number of questions in the framework, they were used selectively when interviewing different individuals, eg questions of strategy, business issues were asked of the Chief Executive Officer and Senior Line Managers, specific HR issues were addressed to Corporate Services and Human Resources.

Analysis

A written report was prepared by the consultant for the HR Manager and the Senior Line Manager. The report summarised the business issues and highlighted the gaps in alignment. Because the organisation does not have a large HR Department, and therefore a large pool of resources, the consultant provided an extensive list of suggested actions (based upon best practice materials) to provide additional support and guidance to the agency.

Some of the significant findings to emerge were:

* the need for the agency to more clearly articulate its strategic direction, its change agenda, and be able to communicate this to its staff;
* the need to re-position human resources to provide greater strategic support for the agency;
* the need for workforce planning to ensure the agency had the right number and mix of personnel to meet the needs of its changing strategic direction.

Action Planning

A discussion was held between the HR Manager, Senior Line Manager and the consultant to identify the critical issues. It was agreed that the priority issues were to identify the critical strategic outcomes and the change agenda. This was seen as a pre-requisite to realigning HR to business strategy.

It was agreed that the consultant would conduct a mini-workshop with the senior managers to overview the assessment outcomes, and to assist them in identifying the critical change issues that needed to be addressed, and ways of communicating them to staff. This would then provide the HR Manager with the basis for beginning to address some of the other issues outlined in the report.

Comments

This exercise has raised the issue of timing and organisational readiness when undertaking a strategic HR analysis. In some ways it may have been more helpful to undertake the exercise once the uncertainty affecting the organisation’s future, which to a large extent is governed by factors external to the agency, was at least partly resolved.

The exercise has been helpful however, in acting as a catalyst to highlight the change management issues facing the agency. It has also assisted the agency in identifying some of the key areas of HR practice needing attention.

source: http://www.dpc.wa.gov.au/psmd/pubs/exec/framework/casestud/agency3.html

 

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Agency Case Study 4

Description of the Agency

The organisation is a medium sized agency with approximately 700 employees and an operating budget of approximately $70 million. Its services are located in a metropolitan regional centre and there is a presence in the Asian region.

The agency prides itself in its progressive approach to customer service and commitment to training.

The HR Manager reports to the Director Corporate Services.

The Business Issues

The agency is undergoing significant changes in legislation, technology and structure through its shift to the funder, purchaser, provider model and an output based management approach.

These changes are necessary for it to remain competitive in an industry where high standards are expected by customers and there is potential competition through external providers.

What the Agency wanted to achieve using the Framework

The agency prides itself in adopting best practice in its operations, and was keen to trial the framework to ensure its HR practices are aligned to organisational strategy. Additionally, the organisation has a relatively new HR Manager who is keen to ensure the HR function is strategically positioned within the agency. It was the HR Manager’s intention to use this analysis as the basis for developing a Divisional Human Resource Plan.

The exercise was timely given the shift towards the funder, purchaser, provider model. Two of the executive positions have recently been filled, including the strategic planning director.

Methodology

Planning Meeting

An initial meeting was held with the HR Manager to identify how the project would be approached and who should be interviewed. The organisation has a medium sized HR Branch with highly experienced staff, and it was deemed essential to gain their support and commitment from the beginning. They were subsequently briefed on the project, its rationale and the process that would occur.

Assessment

The consultant conducted an individual interview with the Chief Executive Officer to ascertain the strategic and business issues facing the organisation, the critical HR issues facing the organisation and his assessment of the HR function. All of this was done using the Strategic HR Framework.

The HR Manager was interviewed to obtain an assessment of the HR function.

Key documents were reviewed including the Annual Report, recent review reports, enterprise agreements, details of the Structural Realignment of Service Delivery activities and Public Sector Compliance reports.

Analysis

A written report was prepared by the consultant for the HR Manager. The report summarised the business issues, highlighted the gaps in alignment and made recommendations of suggested actions that could occur to address these gaps.

Some of the major findings were:

* there are no strategic or operational plans in place;
* performance and productivity indicators need to be more aligned throughout the agency;
* the organisation needs a more diverse, outward looking approach to recruitment;
* there is an immediate need for workforce and succession planning to ensure the necessary skills to meet the needs of the future;
* performance management processes need to be established to reflect an output based team approach.

Action Planning

A three hour workshop was held with a mix of directors, middle managers and HR staff. The aims of the workshop were to:

* agree on the critical business related issues facing the organisation;
* agree upon the critical HR priorities;
* agree upon a model for HR and business managers to work together.

This workshop agreed upon the priority areas to be addressed by the HR group (on behalf of the organisation) over the next twelve months. The priorities included:

* establishing a HR vision;
* the need for more strategic information;
* recruitment and diversity issues;
* establishing service agreements with HR;
* identifying overhead costs of HR;
* developing a performance management system that reflects output based management and team requirements;
* working with the Executive to manage the change and communication processes;
* dealing with the potential loss of intellectual capital and knowledge.

Comments

This agency is regarded as leading edge in many of its people management practices and this exercise has helped refine many of its processes for strategic purpose.

One of the critical issues to emerge was the need to link HR strategy and information to the organisation’s strategy and information requirements.

The workshop with senior managers and the executive proved invaluable in improving the ‘business partnership’ between senior management and HR. It also confirmed the strategic contribution HR can make to business success.

source: http://www.dpc.wa.gov.au/psmd/pubs/exec/framework/casestud/agency4.html