Workforce Performance Solutions - May 2006 - (Page 20)

WP0506_A.qxd 4/27/06 11:54 AM Page 20 Management The Evolving Partnering with Pressures on leaders are coming from the rapidly changing global economy. According to Who Wants to be the Boss? a recent Fortune magazine article, the world economy is in a transformation of the scale of the industrial revolution of 200 years ago. Business models refined and improved over decades at the end of the 20th century are being rendered obsolete by new global competitive forces. What's driving this change? Ubiquitous free information. value apprecia- HR managers, like their leaders, are The most visible example is what's tion in pension being buffered by powerful forces happening to the industrial era's May 2006 portfolios suffi- impacting their areas of responsibil- largest and most powerful enter- cient to cover ity. The largest of these are the con- prise, General Motors. Tethered to future pension obli- tractual legacy costs that burden the immense investments in labor con- gations. In the case of changes required in an organiza- tracts, physical assets and products WORKFORCE health costs, the HMO tion's strategy. For HR, the largest of founded on the internal combustion era followed by aggres- these are pensions and health care. engine, the leaders of GM are sive negotiations success- Until the beginning of the 21st cen- scrambling to keep the corporation fully kept costs within a tury, both HR and organization's from tumbling into bankruptcy. In the performance SOLUTIONS manageable range. Over the last senior executives had been able to face of the growing importance of several years all of this has deal with cost pressures in these intangible assets, the risk of being changed. HR leaders are imple- benefits by changing tactics. locked down by such a massive bal- menting draconian policies to deal Strategy changes were not neces- ance sheet is all new for GM and with run-away benefits costs. sary. A rising stock market provided every other corporation. 20

Table of Contents for the Digital Edition of Workforce Performance Solutions - May 2006

Editor's Letter
Table of Contents
Change Management
Human Performance
Strategic Alignment
Advertiser's Index
Editorial Resources
Full Potential

Workforce Performance Solutions - May 2006