 complex and ambiguous environments. Today's currency for competitiveness is talent, knowledge and leadership and obviously that puts empowered engaged people, you cannot have a natural mindset on an entity. All people in organizations they are overworked. Let's look at some of the answers to the HR, or HR are not the smartest tack in the box or everyone hates HR. HR is just a happy police. These are things that we hear in organizations but a lot of it is really unjustified and many of these complaints actually come from the fact that we have hidden forces in HR. We have especially finance and legal that dictate a lot of the things that we do in HR. To give you an example, hiring freezes is not an HR invention. It's not HR that says, oh I think it's a great idea to force you not to recruit the skills that you need. It's finance that comes in and says, no no, it's October we better not hire anyone anymore. The same is true with the legal. We have so many constraints in our organizations today that are dictated by legal that we cannot talk to our people anymore. Legal makes sure that we can only ask a certain set of questions, that we have to pick certain boxes and that we cannot have a conversation. These are the things that we have to fix. Another issue is that our HR instruments are driven to handle poor performance and mediocracy. That's something we have to fix. Another thing is we have to make up for weak managers and uninspiring leaders. How did performance management get to the point where they are today? Performance management initially started out as having a corporate goal and making sure that everyone in the organization works towards that one common goal. But that's a far cry from what we have today because HR realized that leaders or managers don't talk to their people. So they said, okay we have to make sure that at least once a year your manager gives you feedback. So they put it into the annual process. What happened? It didn't work. So what did they do next? They coupled it with money. They said, if you want to promote your people, if you want to give them a salary right on the bonus, you have to do the employee appraisal. So well-intentioned, but the results that we have today are not in line with what we initially intended. So we have to say no more. It's time for people operations to really shape the future of human resources. The natural people operations, it's really about inspiring, engaging and growing talent and create amazing places for them to work and to thrive in. And actual people operations pros have to have a strong understanding of the 21st century employees and organizations. They have to know what the current talent contract is. That people today, they seek an experience. They don't know what to climb the hierarchy ladder. They want meaning. They want purpose. They want to be a part of something great. It's no longer about work life talent. It's about life working. People today are social and mobile. We have to implement those kind of thinking and demands into our people operations. Most of you will probably be familiar with this model. It's McGregor who said we have two types of employees. We have type X and we have type Y. Type X means that people are lazy. They don't like to work. You have to micromanage them. You have to supervise them. You have to tangle some money in front of them otherwise they're not going to move. Theory Y says that people are intrinsically motivated. That they work if they believe in what they are doing, they don't need to provision. Those are the type of people that we have in organizations today. This model is from the 1960s. More than 50 years ago. It's not new. In HR we've been talking about those two types of employees for a long time. The problem is it's just talk. We don't work the talk. We have to make sure that we change that. With that saying that we are theory Y people, that we are intrinsically motivated. That we want to be part of something great. Also come to certain set of responsibilities. We can, as an employee, can no longer sit back and say, hey, I'm here with the company. Now what are you going to do for me? No, I have to shape my own career. I have to shape my own growth within the company and liaise with my leader as a coach, as a mentor as to liaise, with my people counter with my talent crowd in the organization and help shape my career and their organization. What does HLHR mean? We have two components. One is that we transform the HR organization to a lean HLHR organization with a different set of teams. And we also shape their solutions. Solutions, instruments, tools like recruiting, like talent management, like performance management. So both go hand in hand. Do we have any scaled HR or safe professionals in here? SPC fellows? Okay, great. In safe, the HR organization will be your teams and your trains. And the HR solution will be your front like your capabilities, your features, your epics, and the enablers, your infrastructure. So we have to address both issues in order to be an agile people operation team. Of course, what you see as an employee is the actual solution, the HR solution, and the positive benefit of the HR organization. That's why I would like to go into people and instruments. What do we have there? Let me cluster all the different elements that we have in HR and into the traditional HR employee life cycle. So we have the higher part, inspire, develop, admire, and retire. What do we mean by these different things? Higher or likely what we like to call it talent acquisition. It's the whole recruiting, employer branding, talent, getting talent on board, onboarding, engagement and flow. The inspire part is really about having great work environments organizational, structural, culture, DNA, performance, management, all these elements. The part develop is about learning, learning development, talent management careers within the organization. The part admire is the whole part pay, reward, solution, benefit. The last part, the retire or separate part is about how do we separate for people? When do we do it? How do we plan our workforce? What I would like you to do is to take just a couple of minutes to discuss with the person or persons next to you. What do you see is the key challenge for your team or your organization in the HR sphere? Just take a couple of minutes. I see there seem to be a lot of challenges. Let me show get a show of hands who says hiring and recruiting is a key challenge in your organization. Who says it's performance management and engagement, development, learning and development careers, performance, pay for performance recognition and separation. No one. Okay, great. So we can skip that. That's good. Okay, that's good. That's good. You can share your insight later. Let me give you a brief overview on how we approach these things. Talent acquisition, hiring and recruiting process. The one thing I want to point out, it's a lot about employer branding. I see so many organizations that have really embraced agile for so many teams and they have this great way of working but they don't actually utilize it when they hire people. Of course, if they hire a product owner, it's written that they obviously work with a natural approach. But other than that, they don't utilize that even though millennials, the young generation and India will have almost a whole workforce made up of that generation, they embrace agility like no other. So we should really make sure to tell people, hey, you're a great company to work for. We are embracing in a natural way of working. The other part is that we have to build a strong talent pipeline. And sometimes we forget that the pipeline is not just people out there who are potential employees, it's all the people we have within our organization and we tend to forget them when we hire. Then the talent acquisition process has to be inexperienced because we as an employer also, we have to showcase how great we are and we have to actually be part of the recruiting process the same as the candidate because we apply to the candidate the same way the candidate applies to us. Six in 10 organizations already have difficulties hiring great people. They say it's a huge challenge. So we have to make sure to have that and we have to make sure that we hire people over paper. What do I mean by that? We have to look behind the CV, behind the resume because 68% of resumes are misleading. And 63% of IT organizations have found out lives within CVs and falsifications. So we definitely have to look behind that. And we have to ask the people how great are you at working in natural settings? How can you flex your muscles? How reflective are you? These are the kind of questions that we have to build into our recruiting process. And why not do a hackathon, a hiring hackathon? Why not get several HR teams together when they hire at the same time and make it an event? Why not have, let's say you have three teams who want to hire people. You do the hackathon, you identify two people you would like to hire. Why not let your teams pitch for these two people? So I would say, hey, Dan, why don't you join us because we are the greatest team in this organization. We're going to have so much fun together. And the next thing is, no, we truly want you because we're working on this really cool stuff. And then you decide what team you want to go into. And I can tell you, the whole team will definitely make sure that Dan is successful. And that is really showing your agile values within this process. And then you have to work at onboarding. Because what happens today in organizations? You sign your contract, you don't hear from the people until you start working. Don't do this. Do it for instance like Conker Mulder does. They have an app or an access to the internet. The minute you sign, you get that access and you have learning nuggets and videos on that app that you can watch. And people do a lot of the learning before they even start working. And they are truly engaged and we lose people in the first 60 days of starting. So we have to make sure that we make that count and connect with them from day one. The next thing is engagement and flow. Today it's known as performance management. And we all know how that's working out. We really have to go to an iterative performance flow and really embrace a new way of working and find the right structure for us. For instance, there are companies who do a voting that you vote your managers, that you vote your leaders. Like Haufe, Oman, this does. So we can really embrace a new way of thinking. Obviously we have to make sure that we have great leaders. And today one in five senior managers are dispassionate about their work. So how are they going to engage their people if they themselves don't really enjoy what they are doing? So we definitely have to make sure that we deal with that issue and that we understand the new way of leading people. It's no longer, I'm the boss, I'm the manager. It's being the coach, the partner, the mentor, depending on what the employees need. I'm not going to go into too much detail about performance flow. We had a session on that if you like the slides or have any questions come up and talk to me. But let me say that employee appraisals are disappearing. Already today, 10% of the Fortune 500 companies have eliminated employee appraisals. So it's really starting to happen. Then we have learning and growth. How do our child teams learn? They learn every single day. They learn by working. It's no longer just classroom trainings and that's it. We really have to embrace those new ways of learning, continuous feedback, interactive learning, social, mobile learning and all these new technologies that we have, we can utilize them and build that in. And immediate feedback is really important. But it's not feedback that gets reported back to HR. It's feedback between us. And we know today that if someone writes someone, another person, the person who does the ratings says more about themselves than they do about the person they rate. Like if you ask Michael Jordan, are you tall? Then he would say, no, you're not because compared to him, we are not tall. But if he's someone else who's even taller than you, he would say, yes, he's tall. But that doesn't actually tell you something of the person who was rated. It tells you more about yourself. And if we do 360 degree feedback, that's just gonna multiply by seven or nine people. So we have to make sure that we understand the complexity of giving feedback and make sure to embed it. I can give you an example of what China has warned us. They have a set of competencies that are key for their organization. And they define a set of different questions that ask for a level of competency for each one. Then every week an employee rates someone else. It's random who you're gonna rate. And you always ask a question like is Peter punctual? Then you have a rating scale one to five. You rate that person, but you also write what does punctuality mean for me? Then you write in, well, I'm always running 10 minutes late. So yes, Peter with his two minutes late is punctual. So you write in what does it mean for you? And that really helps to start the dialogue. But again, it's not reported to any managers or any HR person. It's just between the people doing it. And the minute you decouple it from salaries and promotions, it gets in a different way. And you can really talk about the thing and not about the consequences it might have. And modern HR organizations have two, or at least two really critical new roles in there. And one is the career counselor and the other one is the talent coach. Because today in our organizations, HR people do not really know who their talents are and what their talent are. They might have some lists that came out of an employee appraisals, but they don't really know their people. Let me ask you, when was the last time that you actually spoke to your HR person? Not in your capacity as a manager, but really in your capacity as an employee? I was with an organization for 11 years. I never ever even saw my HR person. My contract got sent to me by my boss's office, that was it. After that, I've never seen or heard anything from HR. And we have to change that. And we need to have career counselors who you can approach and say, hey listen, I'm very happy where I'm at now, but within the next six to 12 months, I can imagine to move on and do something different. So they can discuss options without having any negative consequences. And we need talent scout. We need people in the organization who know where the talent sits and what their talents are. So that when it comes to a flexible workforce planning, they know, oh, we can call these three people and approach them and ask them if they would like to move. So it's gonna have a different kind of feel to it. And as we mentioned before, we are theory-wide employees. And if we are theory-wide employees, we're gonna take responsibility for that. We're gonna approach people, but HR is gonna be there with the set of tools and options. And we can really have a dialogue. Pay and recognition. It's always a key topic. Bonuses and how do we approach that. I guess everyone here is familiar with Daniel Pink, Mossery Economy Purpose. I'm not gonna go too much into that. What I would like to point out is that we have to bring in flexibility and transparency to our salary system. Flexibility means that we have to empower our managers to make salary decisions. And that cannot be tied to a once a year event. You have to make sure that they have the authority and the knowledge and the data to do it. The other thing is transparency. We all know about Buffer and other companies that have their salary formulas, where it's very simple, you have a specific role, you have your location, you have your seniority level, and that gives you a specific salary. So now you might think, okay, I can't do that in my organization. We are a 10, 50, 100,000 employees shop. We cannot do that. We have different types of job families and categories in our organization. I can share with you an example from a chemical company, what they did. They come from a very, very hierarchical background. The people who have been there for a long time still have in their employee contract that you're not allowed to talk about your salary, and if you do, the company can fire you. So that's the type of setting they are operating in, but they wanted to open it up. So what they did is they send a salary letter to every employee once a year, and they told you what reference role you are and what the midpoint is, the salary midpoint for your role and how you are positioned. So it would say you're at 80% of your midpoint, so you knew how much gap you can have to the top or where you're positioned, and you know that you can grow within that salary range. So they tried to loosen it up and break that construct that they had and really bring transparency, even though the organization was not ready yet, and they had the unions in there and they signed it off. So it's really possible to start doing certain things, and I think one of the speakers mentioned the Trojan horse, and a lot of the things that we start doing in HR are a Trojan horse. We have to start loosening it up and show them a different way of doing it. And then another example about empowering employees is from a pharmaceutical company. They started having a reward solution center where they gathered all the compensation data and they said salary ranges for specific roles, and every manager had access to that data pool. So when they hired someone or wanted to promote someone, they could just choose the new reference role, and then they had the internal and external peer data and benchmark data on there. So they could really make an informed decision and say, that's the new salary I would like to give to that person. And if that was within a given range, they could just send it off. They could press a button and it would just print your contract. You didn't have to go through legal or hiring or whatever, so they could do it immediately. If it went above 20% of the top, they had to contact the reward solution center and talk to them and plead their case why that person should get a different salary. So there are ways of approaching that even though your organization might not be fully agile. And you might have to be more careful. The last point I would like to make here is about benefits. It's benefits, what it includes is all pension schemes and these things, but it's all about the immediate benefits that you get. And we sometimes forget to have the help and well-being of people in there. Even though we know today from a lot of studies that if our people are mentally and physically healthy, they are 36% more productive just by choosing the right benefits. And police today say, if my company gives me a Fitbit, I'm even willing to share my data with them. So they are open for these kind of things and we have to make sure that we have a balanced approach. And in order to get the topic of money off the table, we have to find different ways and we have to understand why there is this run for bonuses and for salary raises. It's not just to get a financial stability. A lot of it has to do that this is the only kind of recognition and feedback people get in our organizations. That's how they are recognized and awarded. So we have to come up with new solutions to do that. And always have the actual mindset of teams in the focus because the minute we start choosing and picking within the team, we're going to have this kind of rating in there. And we have to make sure that's really the approach that we want to have. Then new beginnings, last but not least, has a lot to do with when do we separate with someone. And there we should follow the approach, higher, slow, fire fast. Meaning make sure that you have to write people. But if you see that it doesn't work out for whatever reason, make a cut. If you can find something else within the organization for that person, great. If you don't, help them transition into an external role. But make it with integrity and have that discussion. And I am sure if you have that honest discussion, if you have it right away, people are going to be happy and are still going to be great ambassadors for your organization if you do that with integrity. No. Because it's no in the sense that we have them today. It's yes to, of course, improve every single day. And you know agile better than I do. So you know how powerful agile things or feedback in agile teams is and how they improve on a daily basis. But if you see that it's not the right fit, and again I'm saying for whatever reason, for instance Michael Jordan used to play baseball at one point in time. Because his dad passed away, so he quit his MBA career and went into baseball. He was decent, but he wasn't that good. Which doesn't mean that he's not a great sports person. But baseball was just not his thing. And that's the same in teams. It doesn't mean that it's a bad person or a lazy person, it's just not the right fit. And we have to make sure that we account for that. Because Pricewater has covered the study on this in their own organization. And they said if we have a team of four consultants, they are supposed to bring in $500,000 in revenue a year. If we have one bad apple out of the four, that's gonna reduce our productivity by 30 to 40%. That's $125,000. Not counting the amount of money that person actually costs in total HR costs. So those are the things that we forget. Our people suck the energy out of the other ones in the team. And that's a huge productivity loss that we sometimes don't see. But having said that, we also recognize that a lot has to do with hiring freezes that we mentioned before. Or lack of flexible workforce planning. Because the manager knows the minute I get rid of that person, I probably won't be able to fill that spot anymore. But if we have agile workforce planning, if we know our talent in the organization, we can fill those positions quickly. And if someone consultant says, hey, I was just in a bar last night and I met a friend that wants to go on a sailing cruise, I'm gonna join him in six months. He's like, hey, cool for you, off you go. Come back in six months. We have to have that flexibility. I mentioned at the beginning that people are stressed out. There was a study by RIGAS in 2012 here in India and they realized that a lot of people, more and more people are being stressed at work. And having a flexible workforce planning would have reduced their stress by 78%. So we have to embrace those new ways of working and have to make sure that we don't do people along the way. Because the minute we part with people, we have to turn them into winning ambassadors. And I've seen it over and over again in so many organizations that we burn bridges when we separate. And that's not the way to go. Sure. The question was about hiring slow-firing fast that HR cannot make that decision, that they don't have the knowledge to make that decision. Yes, that's right. HR is not there to make that decision. Managers and teams have to make that decision because HR is not gonna know, but HR has to help with that transition and have to have tools and instruments ready for that. Let me just say a couple of words on how to transition from a traditional HR approach to the natural people operations. We see that in organizations, highly linked to your actual journey. If you just have one or two scrum teams, usually that's not such a huge issue. But the bigger the actual organization to get, the more you have this clash with corporate and traditional mindset. But actual HR is a reality. I've just posted a couple of comments from trends analysis for this year. HR embraces HR, HR drives the actual organization. So, actual HR is here. And the time to invest is now. If you started last year, the better, but you shouldn't wait. Because if you wait, you're gonna lose out. Because the stuff that we're gonna invent in actual HR, a lot of it is new. And we have to find our way and we have to do it in iterative approach and we have to make sure that we take all that learning with us. This is how we typically set it up. We have a trigger when companies come to us either with the vision to have 21st century HR organization or they have a specific challenge like recruiting, performance management. We either do a full HR assessment or a quick assessment and then we do an initial backlog and then an initial retrospective with your value stream analysis, lightweight business case. We train and educate everyone and then have the backlog requirement and then get started. So really setting it up as an agile approach. Let me give you some quick tips and I hardly dare to show you the first one but I'm gonna tell you why it's up there. Involve your HR professionals. And I'm serious about that. So you think, okay, it's obvious. We wanna change something in HR. Of course, we have to get HR on board. We wanna change something in IT. We get IT on board. But six out of 10 organizations that contact me, ask me this. Do I really have to get HR involved? Yes, you do. Here's the problem. Typically the people that you're in contact with might not be the right people for such a transformation. The people who are great at such a transformation are the people who sit in compensation and performance management teams or in talent management. So they strategically plan all the projects. Those are the people that you need. And those are also the people who leave the organization within three to four years because they get bored or they can't do any more new initiatives. So those will be the people who really embrace this mindset and come help you out. Then set them up for success. You wouldn't believe how many organizations I've seen that set it up as a project. Okay, they're gonna spend 10% of their time. They're gonna work on that. Yeah, we just meet once a week. And you know it's probably gonna be once every two weeks or three weeks in the end. So set them up like you would any other HR team. Then training them in HR is not enough. We have to help them translate it into their own setting. What does it mean in HR? We have to guide their HR journey, give them a full-time HR coach. So far I've seen a lot of projects versus done on the site. And then that's not gonna work. And let them have some fun. Hackathons and open space and all those great things that you have. They do transfer into a different setting. You can do a nature hackathon. They might not necessarily hack, but they can give out the challenge. What does HR look like 2020? What do you expect from your people's people? Then please do cut them some slack. Remember what it was like when you started out in HR. And that's the same situation for them. Imagine we train them for two days in a leading safe and then we expect them to implement safe within the whole organization. But no one has ever done anything in a natural way. So we have to remember that. And we have to remember that you have to understand your organization find your own way. We've already heard it this morning from Scott. Best practices are probably best somewhere else. Of course, look at what other companies do, but it doesn't mean that it's just copy paste and works for you. Make sure that you understand why you're doing things and how you want to approach it. And remember an investment in the natural people operations is an investment in your people. It's an investment in yourself. And to win the marketplace, you must first win the workplace. Thank you very much. Do you have any questions? Please let me know. Any questions? There are a lot of different stories of organizations that started to implement various things. I've mentioned a couple during this week and there are a lot of great organizations on the way to do it. So it's very in full swing of the transformation. I was in London last week with a large bank. We had a dozen of HR people to kickstart their transformation. I'm meeting with an organization tomorrow with 48 HR people who are well on the way to discuss certain things. So there are no large organizations who have done the full transformation from a 50, 60, 100 year background to a fully agile organization. But there are a lot of organizations out there who have started doing great things. Where you can learn, where you can connect and do it. But it's a huge construct. You have to imagine the old framework system or mainstream systems that you had to crumble that all down. It's a huge endeavor. Of course we can say we get rid of job descriptions and have value statements for teams. But we have to realize what is all linked to those job descriptions. You don't get any salary data anymore if you don't have that, you can't rank your people. It's all linked to the job evaluation system which is sort of the backbone of your organization. If you get rid of that, how do you do it? And there are certain things that we haven't figured out yet. Like what is career, how is career gonna be defined? Because it's one thing to have career defined within your organization. But those people need something to put on their LinkedIn profile and on their CV that others can understand. So it's probably gonna go into more like a point system that you collect points depending on what kind of projects and expertise you have. But we don't know yet. So we're really in the middle of shaping the future in HR. And we need you, we need your agile knowledge and your actual agile power and enthusiasm to do it. Because you've gone the way. We're still not there yet and we need your help to get there. Okay, I've been shown that we have. But I'm around so you can come up and ask me a few more questions. Okay, one question. Just to tell you one model that you would work. I can give you examples of different models that work. But one thing is we eliminate employee appraisals and there is no one thing that takes over for that instrument. It's gonna disappear because it's so embedded in the workflow that we give feedback and that we interact and that we learn and grow that we get rid of employee appraisals. And we have your talent scouts, we have your managers, we have your peers who recognize who the great people are. Because I can ask any one of you to ask to point out the best performer in your team. And you will be able to tell me. You don't need an annual appraisal to do that. So we have to be honest that that's the way it is. And we don't have to go in and do it in another way. And you have companies like Spotify, for instance, who have a great model, who really thrive. That Netflix has a slightly different model but they are truly agile as well. So there are different ways of approaching this. But employee appraisals are gonna disappear and there's nothing that comes in. And you always get asked like, we don't wanna do the appraisal, we don't wanna do the ratings. But we still wanna make sure that every individual gets their fair pay and is paid for performance. But the minute you say you pay for performance on an individual level, you have to put in some yardstick and you have to measure against that yardstick. And if you don't wanna have appraisals, because we recognize it's not working the way we think it would work, then we can't do that. We have to do it in a team approach. And bonuses are more gonna be about profit sharing. If the company does great, everyone gets something. And the teams either decide how to split that bonus, bonus among themselves. Either everyone gets an equal share or depending on seniority level. But it's a team that actually decides. And it's about the performance of the whole company. Okay, I'm gonna take more questions aside and then exactly. Thank you, it was my pleasure. Thank you so much. Thank you.