10 things HR transformation

10 things HR transformation

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  10 Things |HR TransformationThe why, what and how of making HR valuable to organisationsRob ScottPractice Leader: Human Capital Services
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  10 Things |HR Transformation10 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?
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  10 Things |HR TransformationHR Transformation initially focused on making HR operationsmore efficient and effective through process standardisation andtransactional technology usage. The next generation of HR Transformationis more tightly linked to corporate strategy and creating business value through HR services that address a company’s most pressing strategic challenges.
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  10 Things |HR Transformation1: What’s driving change in Human ResourcesThe 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 cogPressure to gain the “ People Competitiveness” advantageQuestionable HR service deliveryHR’s return on investmentLeadership changes in HRLack of perceived HR value to the organisationRegulatory changesGlobal demands
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  10 Things |HR Transformation2: Current state of Human ResourcesCurrent research indicates that HR has three key focus areas, however the level of success in these areas varies considerably.HR ServicesProviding the traditional “Hire-to-retire” HR services to line management and employees. The level of “HR maturity” influences the effectiveness of these servicesTransactional executionHR will always be transactional in nature. Record keeping is generally good, but reporting and analysis is generally poorPartneringLine 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 beBuilding the strategic Human Capital function requires a broader focus of attention.HR strategyTalent managementLeadership developmentChange managementStrategic Workforce planningMerger & acquisitionNew market penetrationRegulatory & governanceGlobal mobility & securityProgramme management
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  10 Things |HR Transformation4: Critical HR StrengthsAn analysis of the strengths of HR departments shows alignment with the current focus areas. People skillsHR is still regarded as the custodian of people matters in organisations, and are regarded as competent in dealing with employee relationship mattersInterviewing and assessmentHR is skilled in assessing applicants and conducting applicable assessments – the typical “psychology” profile of HR is still very prevalentFunctional servicesHR provides reasonable services in the Hire-to-retire group of activitiesRecord keepingGenerally good manual recording systems10 Things | HR Transformation5: HR Development AreasIn order for HR to fulfil its new mandate, there are a number of areas that need focus and development.Business strategyData analysis and reportingOrganisational assessmentOrganisational designCost analysisMeasurementCross functional skillsFinancial acumenVendor managementTechnology awarenessSocial network impacts
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  10 Things |HR Transformation6: Major Obstacles to Transforming HRIf HR is going to transform, then it needs to address the critical hurdles it faces.Capability of line managementSkills within HR departmentsBusiness perception of HR’s “value”Attitude of lineHR structures and reporting linesBusiness leadershipBusiness desire for HR strategic activityEffective use of technologyUnderstanding difference between ‘HR Best Practice’ and ‘HR Maturity’
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  10 Things |HR Transformation7: The Four Pillars of StrengthThe new transformed HR model has 4 pillars that support the organisation.CustomersCustomer services is core to HR, but the target is changing to include line customers and vendorsProcessResearch indicates that <55% of HR departments that have redesigned processes are seeing the benefits – Why?TechnologyTechnologies greatest use in HR still remains access to policies & procedures. Less that 35% of organisations leverage employee and management self service or use technology strategicallyStructureWhat 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 positions10 Things | HR Transformation8: Measuring HR – Direct contributions neededTraditionally 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 departmentsHR Cost
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  HR/ Staff ratio
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  Customer Satisfaction
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  HR programme effectiveness
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  Line effectiveness indealing with HR matters10 Things | HR Transformation9: What are the things HR should EnhanceCleaning up the HR house will require focus in the following areas.HR functional leadershipSkills in HRValue of HR to businessBusiness leadershipTechnologyRadical process redesignMeasurementAccountability
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  10 Things |HR Transformation10: Transformation Actions & Self beliefActions steps for HR to start their real transformation journey.Understand your HR maturity levelAssessment of customer needsAudit 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
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  10 Things |HR TransformationThe POIT HR Transformation ApproachHR is being asked to manage an array of critical roles to help their organisations respond to a more complex, and rapidly changing, business environment.StakeholdersStrategic AdvisorTalent creator
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  Counsellor & leadershipenhancer
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  Change designer
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  Organisation structure &environment creator
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  Performance & rewardsprogram creator
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  HR service delivery& vendor manager
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  Regulatory HR generalist/riskmanager
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  Corporate governance consultantThePOIT LicenseCEOShareholdersService SupporterExecutive & non-executive directors
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  10 Things |HR TransformationHR Service Delivery ModelStakeholdervalueThe POIT LicenseTo 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.CustomersThe HR rolesTouch pointsHR strategyBusiness strategy
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  Thank youExcellence inPeople’ 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.Rob ScottHuman Capital Serviceswww.presenceofit.com.au