Transformative HR: How Great Companies Use Evidence–Based Change for Sustainable Advantage

Praise for Transformative HR " Transformative HR is at once both strategic and tactical, and helps HR leaders and their colleagues make decisions that are grounded in evidence and avoid unintended consequences. Practical, compelling, real–world examples are included that help practitioners sharpen their impact in driving change." — Brian Schipper , chief human resources officer, Cisco Systems "Rapid global expansion and new ways of looking at work have made this a dynamic and challenging time for HR professionals. Transformative HR gives HR leaders new tools for a new era, allowing them to think more clearly about their talent priorities and execute their human capital strategies more effectively." — Lynn Tetrault , executive vice president of human resources and corporate affairs, AstraZeneca PLC; chairperson of the board, HR People and Strategy "In case after case, Transformative HR demonstrates how the principles of evidence–based change can prompt real and lasting organizational change in both good times and bad. Citing experiences from a range of companies and industries across the globe, these unique stories show how a commitment to data and analytics in HR can significantly increase our ability to understand our workforces, keep top talent, and motivate employees at every level." — Elaine Arden , group human resources director, The Royal Bank of Scotland Group "Forward–thinking and practical at the same time, Transformative HR delivers a crucial set of principles to HR executives who are managing today′s complex human capital challenges. Especially compelling is the principle of risk leverage, which encourages HR leaders to both understand the risks associated with today′s talent and approach them in a systematic way in order to reveal important opportunities. Transformative HR is creating a new HR mind–set." — David Farrant , senior managing director, Global Human Resources, Nomura Holdings Inc.

Acknowledgments ix Introduction: The Promise of Evidence–Based Change xi Part One: The Five Principles of Evidence–Based Change 1 1. Information Overload or Persuasive Analytics? 3 2. Where Are Your Pivotal Talent Segments? 27 3. Risk: Is It Just a Four–Letter Word? 49 4. Your HR Portfolio: Is It Less Than the Sum of Its Parts? 77 5. "Spreading Peanut Butter" or Optimizing Investments? 95 Part Two: Six In–Depth Cases of Evidence–Based Change 113 6. Royal Bank of Canada′s HR Partnership 115 7. Coca–Cola Combines Passion and Rigor 135 8. Khazanah Nasional′s Pursuit of Nation Building 149 9. IBM′s Workforce Management Initiative 169 10. Ameriprise Financial Reinvents Its HR Function 185 11. Royal Bank of Scotland Proves People Matter 203 Conclusion: Refl ections on What We′ve Learned 221 Appendix: Summary of Lessons Learned 233 References 241 About the Authors 243 Index 245

John Boudreau is professor of Management and Organization at the Marshall School of Business and research director, Center for Effective Organizations, at University of Southern California. He is author of over sixty publications and is featured in Harvard Business Review , The Wall Street Journal , Fortune , and BusinessWeek . Ravin Jesuthasan , CFA, is managing director and Global Practice Leader for Towers Watson′s Talent Management Practice. He was recognized as one of the Top 25 most influential consultants in the world and has been featured extensively in CNN, CNBC, The Wall Street Journal , BusinessWeek , and Fortune .