Thailand HR Strategy Playbook 2024

practical tips & tools for HR strategy & HR Transformation roadmap devlopment

In collaboration with

Managing Human Capital: Navigating Multiple Challenges in A Complex Path Ahead"

The world is evolving rapidly, becoming increasingly intricate. These changes

impact not only the preferences of customers and the dynamics of businesses

but also reshape the very essence of our workforce and workplaces. Thailand

faces numerous challenges in effectively managing its human capital amidst

this swift and complex transformation. Navigating these challenges demands a

meticulous and locally attuned approach, while ensuring alignment with global

standards and trends..

The Thailand HR Strategy Conference 2024 successfully concluded, hosting delegates from 187 organizations, 16 experts, and 13 moderators. A dedicated team worked tirelessly for months behind the scenes to ensure a fruitful two-day workshop, offering great experience, valuable insights and practical tools. This playbook, a culmination of workshop insights and TAS Consulting Partner research, serves as a comprehensive resource for HR strategy and HR transformation roadmap development. It integrates the collective wisdom of leading thinkers and rigorous analysis, offering guidance for organizations seeking clarity and direction in HR endeavors. We extend heartfelt gratitude to all involved, whose contributions shaped this endeavor. Your dedication has been invaluable in creating a resource to benefit organizations navigating HR challenges.

Explore this playbook to drive meaningful change. We hope it proves valuable in your journey forward.

Setting the Course: Strategy and HR Strategic Planning

8 – 19

Navigating the New Business Landscape:

22 – 29

Defining the State of Your Organization

30 - 36

Unveiling Business Challenges

37 – 45

Understanding People Dynamics

48 -59

Evaluating Organizational Reality

64 – 69

Defining Your HR Strategic Theme

72 – 77

Crafting HR Interventions for an Evolving World

80 – 97

Putting all together

100 – 101

About The Conference

108 – 118

About TAS Consulting Partner

120 - 125

Building sustainable competitive advantage

In the strategic realm, organizations illuminate paths for stakeholders — employees, customers, business alliances, community and shareholders — guiding them toward a common direction. However, while many organizations develop strategies, few base them on their distinctive competencies.

Build

Economic Moat

Shape

value customers recognized that they could not find from the competitor

Build

This strategic approach involves aligning resources, processes, and people towards enhancing those unique capabilities that differentiate the organization from its competitors. By focusing on strategic investments and initiatives aimed at developing and nurturing distinctive competencies, organizations can fortify their competitive position and achieve sustainable success in the long run. Research by many management thinkers including C.K. Prahalad, known for his work on competitive strategy and core competencies, emphasized the significance of leveraging distinctive competencies in his seminal 1990 Harvard Business Review article, "The Core Competence of the Corporation" underscores the importance of leveraging distinctive competencies in strategy formulation.. Organizational distinctive competencies, encompass both tangible and intangible facets. These competencies are crucial for establishing a competitive advantage in today's dynamic landscape. While tangible assets such as infrastructure and technology remain vital, the intangible elements like brand reputation, innovation culture, and human capital increasingly drive organizational success. These intangible assets are not only harder to replicate but also require significant investment and time to cultivate. Indeed while leveraging both tangible and intangible competencies is essential, organizations must also have a clear strategy for building or strengthening their distinctive competencies.

Strategic planning encompasses three layers : long-term, mid-term, and short-term , each with its distinct focus. Moreover, various types of strategies, including corporate, business, and functional strategies , contribute to organizational success. HR, as a functional strategy, devises a game plan to align and empower both the business and its people to achieve their objectives .

Corporate strategy Corporate strategy is defined by those at the very top of the organization with strategic work group and is an outline of the overall direction and course of the business.

Long Term

Direction statement Mission and Vision

Choice & Position Strategic goals/Roadmap

Business strategy

Mid Term

Business strategy generally emerges and evolves from the overarching corporate strategy. They are usually far more specific than corporate strategy and will likely be unique to different departments or subdivisions within the broader organization

Priorities Objectives, Critical success factors & Metrics

Short Term

Functional strategy

Functional strategy define how different departments and functions will work together to achieve higher goals. Each sub-strategy need to be synchronized in order to achieve the goals set out by the corporate and business strategies

Strategic planning ensure that

A strategy is sound

All units are aligned with the strategy

Strategy implementation is effective

It involves

Understanding what you currently do

Determining what you want to become

Planning how to get there

Strategy is crafted through a strategic planning process, yielding a measurable, sound direction. This ensures alignment across units and effective execution. A robust strategy delivers breakthrough outcomes in line with organizational aspirations, reflecting a cohesive vision for success. Through this process, organizations navigate complexities and capitalize on opportunities, driving sustainable growth and competitive advantage in dynamic markets.

Manage the strategy

Describe the strategy

You cannot measure what you cannot describe

You cannot manage what you cannot measure

Breakthrough results

You cannot reach breakthrough if you don’t make a good strategy

Develop HR Strategic Plan

To develop an effective HR strategy, comprehending the HR model is essential. An HR model delineates HR's role and placement within the organization, guiding human resource management approach of the organization. It intersects with the HR strategy, which envisions the future, while the HR model outlines the path toward realization. Understanding this framework is pivotal for aligning HR initiatives with organizational goals and objectives.

Based on TAS's experience collaborating with Thai companies, the prevalent HR model adopted is the functional-based model, depicted in the diagram below

Business Strategy

Internal environment

External environment

Overall HR Strategy

Resourcing Strategy

Learning & Development Strategy

Reward Strategy

Retention strategy

HR Capability Building Strategy

HR is not about HR it's about what value we create from doing HR

Professor Dave Ulrich posed a critical question to HR professionals in his article titled

"Six Actions for HR to Create More Stakeholder Value ": How can HR maximize value

creation for all stakeholders?

Answering these question will enable you and your organization to:

• Make informed choices with actionable insights about where to prioritize your HR work.

• Intentionally disclose what you are doing, its impact, and improvement plans.

Making informed choices and intentional disclosures is relevant for many stakeholders

Despite its prevalence among companies in Thailand, the functional-based model may not fully meet the expectations of business leaders and other stakeholders. For instance, CEOs prioritize having the right talent to fulfill business objectives over how many proficiency levels of leadership competency are defined. . Similarly, employees value skill development, employability and self autonomy over mere training hours per individual per year target. Therefore, the HR model used for developing Thailand's HR strategy adapts elements from The Harvard model of HRM, introduced in 1984 by Michael Beer,, and Richard E. Walton, to reflect today’s dynamic business landsca pe.

Stakeholders interest

Organizational impact

Customers Shareholder Partners in ecosystem Communities Employee & Management

Financial return Customer satisfaction Corporate reputation Productivity Innovation

HR outcomes

HR Policies & Practices

Completion

Talent Management system

Congruence

HR Operating system

Situational factors

Human impact

Cost effectiveness

HR Role & responsibility

HR Capability

Business strategy Workforce characteristics Labour market Technology Laws and social values

Holistic wellbeing Purposeful life Career growth Engagement

adapted from Harvard model of HRM, Beer et. Al, 1984

Enabling CEO succession delivering results through talent and organization

Increasing market value tied to intangibles; managing risk

Board of Directors

Investors

Enabling employee to fully contribute and have positive work experiences

Ensuring strategic revitalization and transformation

Current and future employee

Senior Executives

Human Capability

Business Leaders

Creating and deploying a value-added HR agenda

Delivering on goals and building high performing team

HR Professional

Why do stakeholders care abut human capability, Dave Ulrich, 2022

Building Block of HR Strategy and The Tools

In his book "Key Strategy Tools" (2013), Vaughan Evans presents a model outlining the foundational elements of business strategy and the corresponding tools applicable to each block. The model offers a practical and easily comprehensible depiction of the interconnections among each component. TAS has thus embraced this concept to elucidate the elements involved in HR strategic planning and to identify the tools that should be considered, as depicted in the diagram.

Corporate HR Strategy

HR Roadmap

Future of Work

Today

Tomorrow

Workforce demand

Workforce supply

Our business

Our Aspiration

Adapted from Key Strategy Tool, Vaughan Evans, 2013

Example of Tools

Key questions

5W1H, Issue Analysis (Minto Pyramid), SWOT Analysis Management by Objectives (MBO), KPI, OKR, Balanced scorecard

Our Business l Our Aspiration

What capability gaps must organizations address to move from their present state to the desired state?

Strategic Workforce Planning, Pivotal role analysis, Job Analysis (unbundling) , Capability building - Upskill/Reskill

Workforce Demand l Workforce Supply

What is the current state of the workforce,? And what is the external labor market?

Future of Work : Today l Tomorrow

Benchmarking, Scenario Planning People Analytics, 7S (Mckinsey),

How will the forces of change impact work, the workforce, and the workplace?

STAR Model(Jay Galbraith),. Experience Journey Mapping

HR Roadmap

HR Strategy House, HR Operating Model, HR Maturity Assessment

How can the company optimize human capital to meet organizational needs and enhance individual fulfillment?

Performance tree, HR Business Plan, HR Dashboard,

Corporate HR Strategy

Strategy Map, Balanced Scorecard, Stakeholder Analysis Organizational Health Check,

How can organizations establish a robust talent pipeline and organizational health that fosters all horizon of growth (H1- H2-H3) without sacrificing or compromising any aspect?

Challenges l Opportunity

Risk assessment matrix , Environnemental Scan (PESTEL), Social listening, Trend Analysis

What are the external risks and opportunities that act as headwinds or tailwinds for organizations in terms of human capital management?

Absenteeism

Production

Price Waterhouse Cooper studied correlation between people drivers and business performance using a linear relationship with company size and discover that

Wellbeing

Turnover

Training

Development

Workplace stress

12.6%

Leadership

Improving all drivers from average to high could yield 12.6% increment of total revenue

External CSR

Compensation

Autonomy

Impact on

Diversity

Absenteeism Turnover Production

Work Environment

Schedule satisfaction

0.5

1.0

2.0%

Source : PWC, 2023

1.5

“ Your company needs to define what HR means. Too often, the HR space is defined and inundated with initiatives responding to the latest work challenges (e.g., great resignation, quiet quitting, hybrid work, CEO pay ratios, skill-based pay, etc.). These interesting and popular initiatives often are independent efforts neither integrated with other initiatives nor cumulating and building on previous work ”.

Dave Ulrich, 2023

Organization achieve

HR implement

Employee Results Sentiment, Experience, Productivity

initiatives that uplift Competence of Workforce

Strategic Results Strategic Realization, Reinvention

initiatives that build Leaders and Leadership pipeline

Customer Results Customer Perception, Share

initiatives that enhance Organization capability, Workplace or Team collaboration

Financial Results Cash flow, Investor Confidence (P/E ratio)

initiatives about Purpose, Engagement, Culture

Community Results Social citizenship, Reputation (ESG)

Understanding business strategy and translate it into talent implication is among key challenges of HR

There are four main challenges that reduce the effectiveness of HR strategic planning

Understanding business strategy

HR fails to understand short and long-term strategy of the business HR fails to identify critical HR capability needed to support business strategy

Translate business strategy into talent implication

HR fails to understand HR success metrics associated with business strategy HR fails to identify connectivity between HR functions and programs HR lacks the framework to build a compelling business cases for its strategies and budget HR infrequently communicate the strategic plan to a limited group of stakeholders

Obtaining buy-in from the business

HR lacks the tools to measure the success of the HR strategic plan overtime HR has no clear framework for adapting the strategy as needed

Adapting strategic as business condition changes

Source : Gartner, 2022

Key questions that HR should be able to answer

Who are our main competitors ?

what are our strengths and weaknesses compared to competitors?

How does our business differentiate itself from competitors in the market?

What is our operating cost structure, and how does it impact our bottom line?

What are the key drivers of profitability for our organization?

How does our business make money, and what are the primary revenue streams?

What are the industry trends and market dynamics that could affect our business?

What are the regulatory requirements and compliance issues relevant to our industry?

What are the corporate key performance indicators that drive success in our business?

What are the current challenges and opportunities facing our industry?

How do changes in technology, consumer behavior, and market trends affect our business operations?

What are Horizon 1-2-3 of our business?

There is no business as usual any longer

In the evolving business landscape, we observe a significant shift from traditional models to platform-based structures. In conventional setups, transactions typically involve producers, buyers, and occasionally, suppliers facilitating resource provision to producers in exchange for financial compensation and at times, distributors/retailers acting as intermediaries, facilitating exchanges between producers and buyers.

Suppliers

Producer

Buyer

Distributor / Retailer

Product

Money

Platforms serve as virtual marketplaces where producers showcase offerings and consumers articulate demands. This model enables a direct link between those seeking and offering services or products. Consumer behavior undergoes a notable transformation, marked by increased demand for personalized, pay-per-use solutions rather than comprehensive packages.

Seeker

Asset/Product Owner

Product [ as needed ]

Suppliers

Recommendation Like/ Engagement

Offer

Fee

Offer

Request

Fee

Platform

Fee

Platform operators levy fees on both producers and consumers, disrupting the role of intermediaries. Suppliers may transition into competitors, leveraging platforms to directly engage with consumers or collaborate with other suppliers. This paradigm shift underscores the evolving dynamics of modern commerce, emphasizing direct engagement and tailored solutions. Moreover, producers not only receive monetary compensation for products sold via platforms but also expect buyers to provide recommendations, likes, or engagement with their products in return. Additionally, buyers, now less attached to brands, have the flexibility to choose alternative products from various startups, amplifying competition and fostering a more dynamic marketplace.

Horizon 1-2-3 of business

In the traditional context, companies have often followed the S-curve model, which represents the typical growth trajectory of a product or service from inception to maturity. Initially, companies invest in product development and marketing to gain market acceptance, leading to a period of substantial growth and profitability. However, as competitors enter the market, profits may plateau, prompting companies to seek new growth opportunities. While the concept of the new S-curve remains relevant, the linear progression it implies may no longer suffice in today's dynamic business environment. The emergence of the digital vortex signifies both opportunity and threat, as disruptive forces can rapidly reshape industries, causing established companies to vanish within a short timeframe.

Growth

Scale

Growth

Start

To adapt, organizations must not only focus on optimizing their core business (Horizon 1) but also leverage their core competencies to explore adjacent business (Horizon 2) and incubate new ventures in emerging sectors (Horizon 3). This approach fosters resilience and innovation, essential qualities for navigating the uncertainties of the digital age.

Profitability

Source : Three Horizons of Growth innovation strategy model, McKinsey,2000

Create viable options

These ideas may be unproven and potentially unprofitable for a significant period of time.

in 4-5 years, following consistent exploratory research, the H-3 initiative become viable with tangible return

Explore and discover expansion

This is an extension of current proven business model which may require an initial cost, but these investments should return fairly reliably. In 2-3 years, following the investment in building capability, H-2 starts contributing significant return to the operating plan

Maintain and strengthen core business

The goals will be mostly around improving margins, bettering existing processes, and keeping cash coming in

In the coming year, H-1 is making profit to the operating plan

Time

It's crucial to recognize that Horizons 1, 2, and 3 operate concurrently, rather than sequentially. Businesses must navigate these horizons simultaneously, balancing short-term profitability with long-term sustainability and growth. This parallel approach allows organizations to adapt swiftly to evolving market dynamics while capitalizing on emerging opportunities across multiple fronts. By embracing this integrated strategy, companies can foster agility and resilience, ensuring their continued relevance and success in an ever-changing business landscape

From Consolidation to Reinvention: New Expansion Paradigms

In the past, business expansion primarily relied on traditional methods such as mergers, acquisitions, consolidation, diversification, and vertical integration. These approaches often involved centralized control and hierarchical structures, aiming for economies of scale and scope. However, in today's dynamic environment, businesses are increasingly turning to Industry reinvention strategies. This involves fostering partnerships, collaborations, and co-creation initiatives with a diverse range of stakeholders, including established companies, suppliers, and even startups. Such approaches enable organizations to leverage complementary capabilities, access new markets, and capitalize on emerging opportunities in a more agile and adaptive manner. Industry reinvention emphasizes flexibility, innovation, and ecosystem collaboration as key drivers of sustainable growth and competitive advantage in the modern business landscape.

Industry B

Industry D

Industry A

Industry C

Consolidation

Diversification

Co C

Start up

suppliers

Com B

Industry reinvention

Vertical Integration

The revolution in business expansion methods has profound implications for HR. It demands a shift in how companies prepare for new forms of

growth and anticipate disruption. HR must focus on attracting and nurturing talent adaptable to dynamic environments, fostering continuous

learning and development, facilitating organizational change, and fostering agile policies and strategic partnerships. This ensures companies

remain resilient and responsive to the evolving landscape, poised to capitalize on emerging opportunities while navigating potential disruptions.

Technology make impossible, possible

The reinvention of industries is being accelerated by advancements in technology such as edge computing, 5G, the Internet of Things (IoT), blockchain, cloud computing, mobile technology, analytics, and artificial intelligence (AI). Initially, traditional companies adopt these technologies to become tech-driven. Later, they embark on reinvention through collaborative efforts between entities from different industries to create innovative offerings that disrupt traditional business models. For instance, a partnership between a convenience store chain like FamilyMart and an analytics company could result in the creation of new service offerings, such as providing loans to customers with good financial records. Similarly, a fintech company could leverage an online analytics platform to analyze data from wearable devices and smartphones, leading to the development of a new company like

Blockchain

Social

Ommichannels Experiences

Retail

Creating a combination of functionality of several different apps into one convenient package.

Mobile

Making healthcare more accessible, convenient, and affordable for customers in the communities it serve. Health & Wellness

Financial Services

Analytic

Edge Computing

Fintech

Using online analytics platform to analyze data from wearable and smartphones to lower user’s insurance premiums

AR/VR

Cloud

Healthcare

HealthTech

FitSense, which offers personalized insurance premiums based on users' health and lifestyle data. These examples showcase how

industry reinvention involves the convergence of technologies and expertise from diverse sectors to create novel solutions that address

evolving market demands.

The battle field ANSOFF Model

Understanding where, what, and how to win is foundational to business strategy. While traditional models like the growth-share matrix, Five Forces analysis, and Ansoff model have been strategic cornerstones, they may not fully address the challenges of disruptive innovation and digital transformation. Enter the concept of "Zone to Win," spearheaded by Geoffrey Moore, offering a paradigm shift. It segments operations into four zones — performance, productivity, incubation, and transformation — each with unique objectives, metrics, and management strategies. This approach fosters a balance between innovation and operational excellence, ensuring organizations remain relevant and successful amidst dynamic market landscapes. By effectively managing all four zones, companies can navigate disruptive innovations and achieve sustainable growth. The Zone to Win framework provides a nuanced understanding of how organizations can adapt to changing market dynamics while staying true to their strategic objectives.

Market Development

Diversification

Product Development

Penetration

Existing

New

Products

Five Forces Analysis

New Entrants

About “Zone to Win”

the Zone to Win concept is a strategic framework introduced by Geoffrey Moore in his book "Zone to Win: Organizing to Compete in an Age of Disruption. " This framework helps organizations navigate through disruptive innovations and achieve

Suppli ers

Buyer

competitor

sustainable growth by dividing their operations into four distinct zones:

Substitution

The Performance Zone : This zone represents the core business operations where the focus is on delivering predictable results and maintaining profitability.

Growth – Share Matrix

The Productivity Zone : The Productivity Zone involves optimizing internal processes and operations to enhance efficiency and reduce costs.

The Incubation Zone : In the Incubation Zone, organizations explore and develop new products, services, or business models to address emerging market opportunities and stay ahead of competitors. The Transformation Zone : The Transformation Zone is where organizations undergo strategic initiatives to adapt to changing market dynamics, embrace disruptive technologies, and transform their business models for long-term sustainability.

Understanding business is imperative for HR as it aligns with the Zone to Win concept, where organizations divide operations into distinct zones: Performance, Productivity, Incubation, and Transformation . HR's comprehension of business allows it to strategically allocate resources based on the needs of each zone. In the Performance Zone, where existing products or services excel, HR designs processes to ensure fast product and service turnaround times; compensation and incentives must be linked to individual and team performance. In the Productivity Zone, aimed at improving operational efficiency, HR streamlines processes and fosters a culture of productivity and collaboration across silos. In the Incubation Zone, HR typically does not fully dedicate resources to each investment or idea but ensures that the organizational system supports internal innovation, risk-taking, and exploration of new ventures. Finally, in the Transformation Zone, where timing is most critical — if the company misses catching the wave at the right time, it will not have a second chance — HR must dedicate existing resources or make a business case to justify new resources to enable the new revenue stream of the company. By grasping business dynamics, HR can effectively tailor its strategies, ensuring that talent management initiatives align with organizational objectives across all zones. This strategic alignment minimizes priority conflicts and maximizes HR's contribution to sustainable growth and success. Rather than isolating HR functions to specific zones, this approach integrates HR seamlessly into the broader organizational strategy, fostering agility and resilience in a dynamic business environment. Thus, HR's understanding of business becomes a cornerstone in navigating the complexities of the Zone to Win framework, facilitating strategic resource allocation and driving organizational performance across diverse operational contexts.

Each zone has its objectives, metrics, and management strategies tailored to its unique characteristics and objectives. By effectively managing all four zones, organizations can achieve balance between innovation and operational excellence, ensuring their continued relevance and success in dynamic market environments.

Sustaining Innovation

Disruptive Innovation

Transformation Zone

Performance Zone

Exploratory idea go to be scaled

Generate revenue of core business

Contribute >10% of revenue

Need to revitalize established business model & process timely

Could be a zone to re-engineer under performing established business model

A source of >90% of enterprise revenue

Enabling company to catch the next wave

A hub of shared services

Contributing to bottom-line

Only 0-2% of topline contribution

Ensuring compliance, efficiency, effectiveness

Could be a zone to incubate technology or platform for established business

Managed as a cost centers

Incubation Zone

Productivity Zone

Source : Zone to Win, Geoffrey A Moore, 2015

Business in the Whole New World

Customers

Innovations

Competitions

Offering Value

Decision making

The examples provided earlier underscore the complete redefinition of organizational operations across all aspects. Customers now demand superior offerings and are less brand loyal, seeking emotional connections beyond mere physical attributes, reflecting environmental and community concerns. Competitors are no longer strictly defined, as alliances blur lines, suppliers become competitors, and collaboration with former rivals becomes essential for industry preservation. Data-driven decisions replace intuition, innovation requires rapid turnaround, and market research timelines shrink from months to weeks, leveraging social platforms for immediate feedback and iterative improvement. Continuous enhancement at the pace of consumer expectations is imperative; failure invites startups to address neglected pain points, eventually capturing mainstream customer segments.

Companies grow fast, but die faster

1950 2000 2015 2016 0 15

2010

1965 2001 market leadership toppled easily

2020

Shorter product cycle

Shorter company’s life span

10%

20%

2010

2020

2010

2020

2010

2020

established companies bankruptcy

Increasing patent applications

Higher share of profit from innovation

Source : In Creative Destruction (2001), McKinsey’s Richard Foster calculated that the lifespan of Fortune 500 companies which was 75 years in 1950, would sink to less than 15 by 2021 Standard & Poor confirms the trends, Deloitte Shift Index Series

At current churn rates, 50% of S&P 500 companies could be replaced from 2018-2027

years

forecasted 15 - 20 years

2030

1965

2023

Source : Signal,2022

Exercise #1 : Organization State Identification The initial exercise in HR strategic planning involves identifying the business trajectory for the organization over the next 1-3 years. Utilize the provided template as a reference, which varies according to sector (e.g., private, public, non-profit, education). Each organization should define its own state indicators for the workshop. Typically, organizations fall into one of four main states: organic growth, expanding, recovering or divesting with additional states like venturing or existing considered if applicable.

For private sectors

Venturing

Expanding

Organic growth

Divesting

Exiting

Recovering

What does it mean?

steady, natural growth in its existing operations. Including an organic growth that weathering potential threats from new entrants, risking a share of the market.

is strategically reducing its size, selling off assets, or downsizing.

facing challenges but actively working on recovery strategies.

investing in new business models, possibly focusing on platform economy or other

expanding through mergers and acquisitions, integrating or acquiring other businesses

is planning to exit the business, possibly due to market conditions

or strategic decisions..

innovative ventures.

Key indication

Liquidating assets, concluding

Streamlining operations, selling non-core assets, and optimizing resources.

Implementing cost- cutting measures, restructuring, and focusing on revitalizing core operations

Increasing market share, expanding customer base, and developing new products/services Also being navigate increased competition and potential market share erosion.

Exploring new revenue streams, adapting to industry trends, and fostering innovation

Consolidating market position, acquiring new capabilities, and entering new markets

operations, and developing exit strategies

Public/ Non-Profit sector

Venturing

Expanding

Maintaining

Establishing

Downsizing

Restructuring

What does it mean?

a stable operational state, the organization consistently delivers

[newly or going to] sets up structures and operations and services to public. .

Undergoing strategic changes, realigning focus areas or programs to enhance effectiveness in achieving social objectives.

engaging in new business ventures or innovative projects to diversify impact and contribute to public service goals.

Actively pursuing growth, the organization diversifies services and expands into new markets while emphasizing public service.

strategically reducing size or scope, reallocating resources to improving efficiency in both public service and profitability.

its mission while balancing public

service and profitability..

Key indication

Keeping up with fiscal service and profitability target Optimizing operations and

Exploring emerging sectors, and

exploring new markets & introducing diverse services, forming partnerships

Assessing and realigning focus areas for enhanced effectiveness. Strategic shifts to optimize social impact initiatives.

Streamlining operations for

Establishing foundational infrastructure. Defining policies, guideline,

increased efficiency. Strategic

forming strategic partnerships for sustainable societal impact.

downsizing while preserving core functions.

Navigating regulatory requirements.

maintain stability

Higher Educational Institutes

Venturing

Expanding

Maintaining

Establishing

Downsizing

Restructuring

What does it mean?

Attained stability, delivering consistent services through optimized operations, engaged

Actively pursuing growth opportunities, possibly by increasing enrollment, adding programs, or expanding facilities.. This includes forming strategic partnerships with other institutions

Strategically adjusting operations, possibly reducing reliance on government subsidies and exploring revenue generation. This includes changing ownership/investors

In the initial phase of formation, setting up structures and operations for educational services..

exploring and engaging in additional business activities beyond traditional educational services..

Strategically reducing size or scope, often due to financial considerations or shifting priorities..

faculty, and responsive administrative

practices, ensuring sustained quality.

Key indication

Streamlining academic programs. Adjusting faculty and staff numbers. Optimize

Maintaining steady enrollment, though declining occasionally

Developing mission, vision, model.

Increasing student enrollment. Expanding academic offerings. Investing in infrastructure development.. Sharing academic resources. Engaging in cross- institutional programs.

Diversifying revenue streams. Exploring partnerships with industry. Offering non- traditional educational services..

Shifting from heavy reliance on subsidies.. Developing alternative revenue streams. Transitioning to new leadership. Adapting to changes in strategic direction.

Establishing academic programs.

Refining academic offerings.

operational efficiency..

Recruiting initial faculty and staff.

The examples below illustrate how HR strategic focus, interventions, and capability building strategies vary based on the organization's state. Understanding the organizational state informs HR's approach, ensuring alignment with business needs and objectives. By tailoring strategies to the specific context, HR can effectively address challenges, capitalize on opportunities, and contribute to overall organizational success, resilience, and agility in a dynamic environment.

Recruiting

Rewarding

Developing

Key Focus

Strategic Workforce Planning

Performance Based Compensation

Globally Competent Leader at all level

Talent Analytics

Employment Brand

Compensation & Benefit redesign

Internal labour mobility

People Productivity Matrix

Tailored to fit specific segment

Recruiting Critical Skills

Flex Benefit

Freezing

Reduction of Incentive

Critical Skills

Layer & Span Streamlining

Utilizing extended Workforce

Cross Training

Reducing bonus

Cut of Salaries & Benefit

As required by Law

Personnel Cost to Net Sales

Reduction of staff

Retention of Bonus

HR Organization

HR Professional

HR Budget

HR Deliverable

Increasing pool of HR (agile team)

Mobilizing talent into HR

Investing for future

Business Embedded HR

Transforming

Upskilling Across HR Functions

Increasing HR specialist (CoE)

Justifying Investment

Talent Integrated HR

Be Cautious in Approving

Focused critical skill training

Freezing Recruitment

Reorganizing

Regulatory Compliance Training

Fundamental HR

Freezing Cutting

Downsizing

Reducing

Decoding Common Terms: Unveiling HR's Unique Interpretation

We did not seek to beat competition , instead we aim to make the competition is irrelevant

Create need in the industry

Redefine industry expectations

Innovation

Keep up with the best practices- as good as competitor

Renewal

Correct the operation gaps - to stay in the game

Improvement

Cost Leadership

One common pitfall for HR professionals is engaging in repetitive activities without aligning them with broader business objectives. Additionally, they may follow media- driven trends like “The Great Resignation , The Quiet Quitting, The Quiet Firing etc. without understanding their organizational context.

Consider "innovation." It encompasses incremental, breakthrough, and disruptive forms. While all contribute to creating new ideas or things, they differ significantly. Incremental innovation drives ongoing improvement, breakthrough innovation advances within existing categories, and disruptive innovation radically changes market behavior. Recognizing these distinctions is crucial for tailoring HR interventions effectively and ensuring organizational success.

From Understanding to Action: Crafting the Right HR Strategies

Goal

Time Horizon & approach

Ambition level

HR Strategic focus/Actions

2-5 years Manageable set of strategic experiments, trial and errors

Strategic Focus : Attract and retain innovative talent, foster a culture of creativity. Action : Invest in talent acquisition for diverse skills, encourage cross- functional collaboration, and create an environment that values experimentation and risk-taking..

Might seem small at the beginning but leaf frog in long run Need sufficient short-term traction to justify direction Example : 1% revenue from new business (1 st year) 10% revenue from new business (3 rd year) 20X annual increase of user engagement

Scaling up what work

Innovation

Exiting early what doesn’t work

Making profit from a new revenue stream

and new way of making money

1-2 years

Substantial, Double digit difference in KPI

Strategic Focus : Optimize workforce efficiency and operational processes.

Fundamental analysis

Action : Assess and streamline existing processes, identify areas for cost reduction, and ensure workforce adaptability.

Strategic solution

Example : 10% more cross-selling 15% cost reduction of SG&A

Renewal

Chopped into manageable pieces for execution

Increasing profitability resulting from intervention in current operation

Quarterly, Half-year, <1 Year,

Small, single digit difference in KPI

. Strategic Focus: Enhance employee skills and encourage a culture of continuous learning. Action : Implement training programs, foster a mindset of ongoing improvement, and leverage feedback mechanisms.

Example : 5% lower failure rate 6% increasing customer satisfaction

Brief analysis

Improvement

Practical solution

Doing thing better everyday

Executed immediately

Adapted from Gartner, 2023

State of Organization in Thailand

Based on answer of 139 Organizations participating in Thailand HR Strategy & Transformation Conference The response may not accurately reflect the organization's true state, given the varying levels of HR involvement and contribution to the organization's business strategy.

Venturing

Expanding

Organic growth

Divesting

Exiting

Recovering

32%

31%

57%

11%

Financial Services Insurance

42%

64%

Energy Utilities Chemical

Educational Institutes

33%

42%

68%

Stabilizing

Healthcare

Data not available

30%

50%

20%

Public Organization

Restructuring

Agribusiness, Food processing Logistic, Packaging material

10%

23%

54%

23%

100%

Food & Beverage , QSR

Retail, Wholesale, Fashion, Hospitality

28%

10%

72%

Property, Construction Building Material

10%

65%

25%

Professional services Platform , Technology, Telco, Media

45%

55%

Automotive & Assembly Electrical & Electronics Equipment

40%

30%

22%

35%

43%

22%

Very Large sized & MNC

Large sized

10%

25%

62%

14%

Medium sized

25%

62%

14%

Small Micro, Strat up

10%

61%

29%

Shared value chain process, diverse challenges to navigate While organizations share common value chain processes outlining their product production and service delivery, they encounter diverse challenges. Some grapple with escalating operating costs outpacing revenue growth, eroding margins. Others rely heavily on dated product pipelines, lacking innovation. Public scrutiny over compliance raises concerns for certain organizations. Recognizing these challenges is pivotal for HR strategic planning. Moreover, HR must not only address challenges but also seize opportunities. Leveraging organizational competencies and emerging trends, HR can facilitate early adoption and capitalize on first-mover advantages. This entails building capabilities and strategizing workforce compositions to position the organization advantageously. Featured here is a word cloud generated from insights gathered from 452 companies applying for the Thailand HR Strategy Conference 2024. This visual representation encapsulates the primary challenges and opportunities these organizations anticipate encountering over the next 1-3 years. Each word's size corresponds to its frequency in the responses, offering a vivid snapshot of the prevailing concerns and potential areas of growth across diverse industry sectors. As we delve into the conference discussions, let's explore how these themes resonate and the strategies we can collectively devise to address them effectively.

Trans formation

Revenue growth

Employee Productivity:

Branding Market Expansion

Inno vation:

Regulatory Compliance

Sustain ability

Talent Mgnt.

Repu- tation:

Cost Reduction

Financial Services Insurance

Energy Utilities Chemical

Educational Institutes

Healthcare

Public Organization

Agribusiness, Food processing Logistic, Packaging material

Food & Beverage , QSR

Retail, Wholesale, Fashion, Hospitality

Property, Construction Building Material

Professional , services Platform , Technology, Telco, Media

Automotive & Assembly Electrical & Electronics Equipment

From insights gathered from 452 companies, TAS has scrutinized the inputs, grouping business challenges [and opportunities] into 18 themes (A to Z) that organizations in Thailand anticipate facing in the next 1-3 years, as outlined below:

Margin Improvement: Enhancing profit margins through pricing strategies. Optimizing cost structures to improve profitability Innovation: Developing new products or enhancing existing ones. Improving market competitiveness through innovation. Regulatory Compliance Ensuring compliance with industry regulations. Adapting to changes in regulatory environments. Reputation: enhancing the organization's reputation. Dealing with potential public perception challenges.

Branding Evolving the brand's perception in the market. Aligning the brand internally and externally

Cost Reduction Streamlining operations for efficiency. Identifying and eliminating unnecessary expenses. Crisis & Business Continuity Developing strategies for crisis situations. Building resilience against unforeseen challenges. Customer Retention: Implementing strategies to retain existing customers. Enhancing customer loyalty programs

Revenue growth Increasing sales and revenue streams. Exploring new markets or customer segments

Digital Transformation Embracing technology for process improvement. Enhancing customer experience through digital initiatives.

Strategic Partnerships: Identifying and forming strategic partnerships. Leveraging collaborations for mutual benefit.

Diversification Expanding into new product lines or industries. Reducing reliance on a single product or market.

Employee Productivity: Improving overall workforce productivity. Addressing challenges related to remote work.

Supply Chain Optimization: Improving efficiency in the supply chain. Mitigating risks in the supply chain.

Talent Management Attracting and retaining top talent. Developing strategies for employee engagement. Sustainability and Green Initiatives: Adopting environmentally friendly practices. Preparing for the transition to a green economy.

Global & Geographical Risk Navigating economic uncertainties and global trends. Adapting to changes in international markets.

Market Expansion Penetrating new markets or geographic regions. Growing market share in existing markets.

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