10 Things | HR TransformationThe why, what and how of making HR
valuable to organisations
Rob ScottPractice Leader: Human Capital Services
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.
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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.
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
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 Serviceso 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.
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
10 Things | HR Transformation4: Critical HR Strengths
An analysis of the strengths of HR departments shows alignment with the current focus areas.
People skillso 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
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
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’
10 Things | HR Transformation7: The Four Pillars of Strength
The new transformed HR model has 4 pillars that support the organisation.
Customerso 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
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
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
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
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
CE
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Sh
are
hold
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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
om
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The H
R r
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s
Touch
poin
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Stakeholdervalue
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.