10 things hr transformation

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10 Things | HR Transformation The why, what and how of making HR valuable to organisations Rob Scott Practice Leader: Human Capital Services

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Page 1: 10 things HR transformation

10 Things | HR TransformationThe why, what and how of making HR

valuable to organisations

Rob ScottPractice Leader: Human Capital Services

Page 2: 10 things HR transformation

10 Things | HR Transformation

10 Things | HR Transformation is about unravelling the mysteries of HR Transformation ~ giving insight to the myriad of components included in HR strategy and transformation discussions. Organisations have different expectations of Human Resources, but HR itself is finding it difficult to adapt and provide direction. There is good reason for this, given that HR has remained largely inwardly focussed and showing marginal increases in its own performance.

How do we help you on your journey of HR success?

Page 3: 10 things HR transformation

10 Things | HR Transformation

HR Transformation initially focused on making HR operationsmore efficient and effective through process standardisation and

transactional technology usage. The next generation of HR Transformation is more tightly linked to corporate strategy and creating business value through HR services that address a

company’s most pressing strategic challenges.

Page 4: 10 things HR transformation

10 Things | HR Transformation1: What’s driving change in Human Resources

The HR “wake up call” is being driven by a number of key factors – all of which are directed towards building or strengthening the strategic partnership role. Overall business is

transforming – HR is an important cog

Pressure to gain the “ People Competitiveness” advantage

Questionable HR service delivery

HR’s return on investment Leadership changes in HR Lack of perceived HR value to

the organisation Regulatory changes Global demands

Page 5: 10 things HR transformation

10 Things | HR Transformation2: Current state of Human Resources

Current research indicates that HR has three key focus areas, however the level of success in these areas varies considerably. HR Services

o Providing the traditional “Hire-to-retire” HR services to line management and employees. The level of “HR maturity” influences the effectiveness of these services

Transactional executiono HR will always be transactional in

nature. Record keeping is generally good, but reporting and analysis is generally poor

Partneringo Line partnering and strategic

partnering has been on the cards for a number of years. HR tends to rate poorly in this area.

Page 6: 10 things HR transformation

10 Things | HR Transformation3: Where does the HR Focus need to be

Building the strategic Human Capital function requires a broader focus of attention. HR strategy Talent management Leadership development Change management Strategic Workforce

planning Merger & acquisition New market penetration Regulatory & governance Global mobility & security Programme management

Page 7: 10 things HR transformation

10 Things | HR Transformation4: Critical HR Strengths

An analysis of the strengths of HR departments shows alignment with the current focus areas. People skills

o HR is still regarded as the custodian of people matters in organisations, and are regarded as competent in dealing with employee relationship matters

Interviewing and assessmento HR is skilled in assessing applicants

and conducting applicable assessments – the typical “psychology” profile of HR is still very prevalent

Functional serviceso HR provides reasonable services in

the Hire-to-retire group of activities

Record keepingo Generally good manual recording

systems

Page 8: 10 things HR transformation

10 Things | HR Transformation5: HR Development Areas

In order for HR to fulfil its new mandate, there are a number of areas that need focus and development. Business strategy Data analysis and

reporting Organisational

assessment Organisational design Cost analysis Measurement Cross functional skills Financial acumen Vendor management Technology awareness Social network impacts

Page 9: 10 things HR transformation

10 Things | HR Transformation6: Major Obstacles to Transforming HR

If HR is going to transform, then it needs to address the critical hurdles it faces. Capability of line

management Skills within HR

departments Business perception of

HR’s “value” Attitude of line HR structures and

reporting lines Business leadership Business desire for HR

strategic activity Effective use of technology Understanding difference

between ‘HR Best Practice’ and ‘HR Maturity’

Page 10: 10 things HR transformation

10 Things | HR Transformation7: The Four Pillars of Strength

The new transformed HR model has 4 pillars that support the organisation. Customers

o Customer services is core to HR, but the target is changing to include line customers and vendors

Processo Research indicates that <55% of HR

departments that have redesigned processes are seeing the benefits – Why?

Technologyo Technologies greatest use in HR still

remains access to policies & procedures. Less that 35% of organisations leverage employee and management self service or use technology strategically

Structureo What model best suites the objectives of

the business – 60% of HR departments are using SS and COE’s, but lower desire to grow programme specialist and separation of CHRO and HR controller positions

Page 11: 10 things HR transformation

10 Things | HR Transformation8: Measuring HR – Direct contributions needed

Traditionally HR has been measured in ways that are not aligned to support a strategic focus ~ you need measures that shows HR’s direct contribution to the business objectives. Non Strategic measures

typically used by HR departmentso HR Costo HR/ Staff ratioo Customer Satisfactiono HR programme effectivenesso Line effectiveness in dealing

with HR matters

Page 12: 10 things HR transformation

10 Things | HR Transformation9: What are the things HR should Enhance

Cleaning up the HR house will require focus in the following areas. HR functional leadership Skills in HR Value of HR to business Business leadership Technology Radical process redesign Measurement Accountability

Page 13: 10 things HR transformation

10 Things | HR Transformation10: Transformation Actions & Self belief

Actions steps for HR to start their real transformation journey.

Understand your HR maturity level

Assessment of customer needs

Audit of HR data Assessment of functional

activityDesign new strategy for

deliveryEvaluate and implement

technologyDevelop appropriate HR

modelsRadically redesign

processes /measuresSkills development of HR

talentOutsourcingReward strategy for HR

Page 14: 10 things HR transformation

HR is being asked to manage an array of critical roles to help their organisations respond to a more complex, and rapidly changing, business environment.

10 Things | HR TransformationThe POIT HR Transformation Approach

Talent creatorCounsellor & leadership

enhancerChange designerOrganisation structure &

environment creatorPerformance & rewards

program creatorHR service delivery & vendor

managerRegulatory HR generalist/risk

managerCorporate governance

consultant

Strategic Advisor

Service Supporter

Stakeholders

Executive & non-executive directors

CEO

Shar

ehol

ders

Page 15: 10 things HR transformation

10 Things | HR Transformation HR Service Delivery Model

To deliver value, adapt to changing organisation trends, and lead the drive to people optimisation, HR must continue to evolve strategically and build focus around its customers, its key roles and how it touches the business.Business strategy

HR strategy

Cust

omer

s

The

HR ro

les

Touc

h p

oint

s

Stakeholdervalue

Page 16: 10 things HR transformation

Thank you

Rob ScottHuman Capital Services

www.presenceofit.com.au

Excellence in People’ reflects what we value as a company. Our focus has always been on employing the very best people and developing close partnerships with our clients, to provide the best possible solutions. Put simply, we have excellent people who help our clients achieve excellence in the management of their people. We have a great knowledge of HR and IT, but more than that, we are a strong presence within our client’s business. Our strength is the excellence of our people and our focus is on our clients. This focus has seen us evolve into a global organisation to better support our clients in their respective markets, the world over.