The Iowa Experience: Human Resources as a Strategic Business

The Iowa Experience: Human Resources as a Strategic Business Partner Mollie K. Anderson, Director Iowa Department of Administrative Services For the International Personnel Management Association October 1, 2004 1

Why Did You Choose HR? Why did you get into HR? How long have you been in this field? Where do you want this profession to take you? 2

What an HR Professional Is The systemizing, policing arm of executive management An advocate for employees Strategic business partner for customers A champion for change 3

The Primary HR Goal Get the right person With the right skills Into the right job With the right supervision to meet performance expectations and Add value to the organization. 4

The Primary HR Questions How do you attract and retain quality employees? How can you become a strategic partner with your customers? How do you improve productivity and ROI? What issues affect employers’ ability to meet company goals? 5

HR Challenges Today Changing employee demographics and needs More competition for a skilled workforce Focus shifting from regulation to service Demand for customized service The need to support desired business outcomes and affect the bottom line 6

The Iowa Experience Department of Administrative Services combined 3 ½ agencies in 2003 Adopted the entrepreneurial management concepts of strategist David Osbourne Four goals: Improve customer service, save money, streamline, and use resources in a more flexible manner. Unique financing approach 7

Entrepreneurial Management A customer-focused (NOT program focused) approach To delivering services (NOT running a program) In a competitive marketplace (NOT a monopoly.) 8

How DAS is Set Up in Iowa A complement of infrastructure and facilities services, including full range of HR functions Each fee-based operation covers its costs Customer Councils set utility rates ‘Rowing and steering’ functions separated Moving toward one-stop shopping model 9

What DAS Started With Traditional financial infrastructure ‘Old’ agencies without legislative champions Thirty percent budget cuts over three previous fiscal years Highly tenured, program-focused employees Grumpy, uneducated customers 10

What DAS Has Done Passed enabling legislation Developed fee-based financing models, determined service costs, and reduced cross-subsidized ‘drug deals’ Adopted an internal shared services model Established and empowered customer councils 11

What DAS Is Doing Now Refining financing and legislative framework Eliminating silos between merged agencies Engineering a culture change Re-motivating employees with training and incentives 12

The Iowa Approach to HR Define internal and external customers Know your customer(s) and their business(es) Know your business goals and what it takes to achieve them 13

Setting HR Priorities Know your customers’ (internal and external) priorities Understand the financial risk Evaluate the potential for improvement 14

How to Create a Compelling Picture for Action Do your homework and be prepared to tell your story Identify risks of inaction Know the impact on financing and productivity 15

How to Get Your Own Team On Board Lay out clear expectations Use a customer service representative model and service delivery agreements Use performance evaluations and reward programs 16

Example: Workers Comp Start with the viewpoint that people are the face of government Tell the story simply, using the numbers Define the risk (financial, productivity) if no action is taken 17

How to Get Invited to the Decision Making Table Connect with customer goals—save money, streamline processes, etc. Know your business—and your customers’ business Articulate a compelling story Follow up! 18

What Role Does Communication Play? Start with research—know the facts Tell your story in a compelling, understandable way The ‘visual identity’ concept works Repeat, repeat, repeat 19

Use the Tools For the basics, an FAQ Annual reports Newsletters or bulletins Crisp financial results 20

What You Can Measure Customer satisfaction Financial goals Grievances Processing time Turnover/retention 21

The Bottom Line Watch the people who have leveraged their HR expertise to move ahead. HR is no longer just a knowledge game— you must be able to apply what you know. You must be able to listen, evaluate and persuade. 22

What You Can Do to Develop Your Skills and Career Education Write and talk Use associations and seminars Move around in HR specialties and to career opportunities Cross-functional teams Look for emerging issues 23

Lessons Learned—a Recap Be proactive, not reactive Know your customers and your business Do your homework Learn from others when you can Be concise and clear Keep current on emerging issues Get involved in HR organizations Sometimes you have to move You can’t go it alone 24

Question and Answers Visit the DAS website, http://www.das.iowa.gov 25