Human Resources Evolution: Progressive Role in Business Strategy

Business Careers: Human Resources A discussion with Lacrystal Horne s High Point Central High School Class

Agenda Introduction Why Does Human Resources Exist? Legal & Regulatory Compliance Business Strategy Enablement How Does HR Work? Human Capital Lifecycle Analytics What Does Success Look Like? Business Success Societal Success Personal Success How Can You Prepare?

Introduction My name is Matthew Matt Pulliam My name is Matthew Matt Pulliam Background is Engineering and Business Advanced Polymers (BSE) and Finance (MBA) Passion is Human Capital Creating business value by enabling employees to reach their potential I currently serve as the Principal Consultant for delV partners, an advisory services firm I founded I currently serve as the Principal Consultant for delV partners, an advisory services firm I founded earlier this year. We solve business problems earlier this year. We solve business problems which are often really PEOPLE problems which are often really PEOPLE problems by using huge amounts of data, artificial intelligence methods, and domain expertise. huge amounts of data, artificial intelligence methods, and domain expertise. Previously Chief Human Resources Officer for Quality Metalcraft, Inc; Experi-Metal, Inc.; and NHLS Successful careers in engineering, consulting, and most HR functions by using It is my privilege to speak with you today about the role of HR in a successful business It is my privilege to speak with you today about the role of HR in a successful business You are part of the best educated, best prepared, and most capable generation IN HISTORY My job is to translate 20+ years of experience into YOUR competitive advantage I hope you will use this information to become better business leaders and improve our world

Why Does Human Resources Exist? Human Resources evolved from Payroll functions starting in the 1950 s Human Resources evolved from Payroll functions starting in the 1950 s Original goal was to make sure employees received their pay accurately and on-time Most work was done by pen and paper, and calculators were the most advanced tools Employees were considered cogs in the machine Human Resources is still evolving, with two different personalities Human Resources is still evolving, with two different personalities Traditional HR focuses on compliance and paperwork (regulatory reporting, payroll, benefits) Progressive HR focuses on supporting the business strategy and creating sustainable value The current typical split is about 50% traditional and 50% progressive We will focus on the progressive HR role through the Human Capital Lifecycle and Analytics We will focus on the progressive HR role through the Human Capital Lifecycle and Analytics The Human Capital Lifecycle is a comprehensive view of employees as a component of the business Analytics are the tools we use to predict future performance based on employee data

How Does HR Work? Human Capital Lifecycle Human Capital Lifecycle Attraction & Selection Hiring & Onboarding Alignment & Engagement Performance & Reward Training & Development Advancement & Replacement Analytics Analytics Attract people who love what you do Hire people likely to be successful Show them what success means Recognize and reward their success Identify and enable their next success Attraction & Selection Advancement & Replacement Hiring & Onboarding Data & Technology Enablers Training & Development Alignment & Engagement Performance & Reward

How Does HR Work? Each component of the Human Capital Lifecycle requires different Each component of the Human Capital Lifecycle requires different ROLES Attraction & Selection Attraction & Selection requires RECRUITERSwho believe in the company s mission and demonstrate PASSIONfor the business Hiring & Onboarding Hiring & Onboarding requires ADMINISTRATORS who appreciate process and demonstrate DISCIPLINE in following processes Alignment & Engagement Alignment & Engagement requires BUSINESS PARTNERS who understand the business model and demonstrate COLLABORATION with other functions Performance & Reward Performance & Reward requires SPECIALISTS who appreciate math & science and demonstrate BUSINESS SAVVY in balancing costs and benefits Training & Development Training & Development requires TEACHERS who understand how people learn and demonstrate OPTIMISM by seeing the greatest potential in every employee Advancement & Replacement Advancement & Replacement requires INNOVATORS who can visualize the future and demonstrate LEADERSHIP in positioning the right talent where it is needed and when ROLES and and TRAITS TRAITS: :

How Does HR Work? Supporting each part of the lifecycle, Analytics requires strong math, science, and business Supporting each part of the lifecycle, Analytics requires strong math, science, and business skills: skills: Attracting people who love what you do requires knowledge of motivation and labor market economics Hiring people likely to be successful requires a knowledge of human psychology and statistics Showing them what success means requires a knowledge of finance and operations Recognizing and rewarding their success requires a knowledge of accounting, tax, and law/regulation Identifying and enabling their next success requires a all of the above, plus a deep understanding of the global, national, and local environments for business, politics, social & ethical issues, cultural norms, and language & customs The Human Capital Lifecycle and Analytics combine to address the most important HR issue: What sustainable competitive advantage can be created by the behavior of people and teams, What sustainable competitive advantage can be created by the behavior of people and teams, and what role does HR play in enabling and sustaining that behavior? and what role does HR play in enabling and sustaining that behavior?

What Does Success Look Like? Business success is generally delivered through Profitable Growth Business success is generally delivered through Profitable Growth Fads come and go e.g., growing revenue faster than growing losses yields high stock prices?! Over the long-term, a sustainable business must grow revenue and grow profit A key measure of long-term success is Shareholder Value (NOPAT vs. Capital Charge) Societal success is generally delivered through products & services that improve people s lives Societal success is generally delivered through products & services that improve people s lives Fads come and go e.g., paying money for a pet rock that creates no measurable value?! Over the long-term, a sustainable business must provide value over-proportional to price Individual success is generally delivered through personal balance and fulfilment Individual success is generally delivered through personal balance and fulfilment Fads come and go e.g., free food, logo gear, sleep pods a reason to spend 20 hours per day at work?! Over the long-term, a sustainable business enables employees to lead full, satisfying, and meaningful lives

How Can You Prepare? HR is evolving HR is evolving quickly Still need legal & regulatory compliance, but increasingly automated Robotic Process Automation Chatbots, Pre-Hire Administration, Compensation & Benefits Artificial Intelligence Talent Selection, Performance Management, Career Development Real opportunity for increasing business value through people quickly from Traditional to Progressive from Traditional to Progressive Each aspect of the Human Capital Lifecycle and Analytics plays to different strengths Each aspect of the Human Capital Lifecycle and Analytics plays to different strengths HR is not just for people people but empathy and a sense of fairness will always be needed Rapidly increasing opportunities for math, science, and business specialists Most administrative HR jobs will likely disappear in less than 10 years but new jobs for technology and data technology and data oriented professionals will take their place! Success is measured in many ways, and HR has a role in supporting each one! Success is measured in many ways, and HR has a role in supporting each one!