10 Things | HR Transformation The why, what and how of making HR valuable to organisations Rob Scott Practice 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. How do we help you on your journey of HR success?
10 Things | HR Transformation HR Transformation initially focused on making HR operations more 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 Transformation 1: 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 Transformation 2: 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 execution o HR will always be transactional in nature. Record keeping is generally good, but reporting and analysis is generally poor
Partnering o 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 Transformation 3: 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 Transformation 4: 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 assessment o HR is skilled in assessing applicants and conducting applicable assessments – the typical “psychology” profile of HR is still very prevalent
Functional services o HR provides reasonable services in the Hire-to-retire group of activities
Record keeping o Generally good manual recording systems
10 Things | HR Transformation 5: 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 Transformation 6: 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 Transformation 7: 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
Process o Research indicates that <55% of HR departments that have redesigned processes are seeing the benefits – Why?
Technology o 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
Structure o 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 Transformation 8: 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 departments o HR Cost o HR/ Staff ratio o Customer Satisfaction o HR programme effectiveness o Line effectiveness in dealing with HR matters
10 Things | HR Transformation 9: 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 Transformation 10: 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 activity Design new strategy for delivery Evaluate and implement technology Develop appropriate HR models Radically redesign processes /measures Skills development of HR talent Outsourcing Reward strategy for HR
10 Things | HR Transformation The POIT HR Transformation Approach HR is being asked to manage an array of critical roles to help their organisations respond to a more complex, and rapidly changing, Stakeholders business environment. Strategic Advisor Talent creator The POIT License Counsellor & leadership enhancer Change designer rs e Organisation structure & C ld o E environment creator h O Performance & rewards program re a creator h S HR service delivery & vendor manager Service Supporter Regulatory HR generalist/risk manager Executive & non-executive directors Corporate governance consultant
10 Things | HR Transformation HR Service Delivery Model Th The e P POI OIT T Lic L en icenssee S Stak t e akehol ho der lder To deliver value, adapt to vvalu al e ue changing organisation s trends, and lead the drive s tsts rsrs lele inin to people optimisation, ee oo mm ro roR HR must continue to R p ph stosto H H hc evolve strategically and uu ee cu CC hh u oo build focus around its TT TT customers, its key roles HR strategy and how it touches the HR strategy business. B Bus u i s n i es n s ess s t s r t at r egy ategy
Thank you 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. Rob Scott Human Capital Services www.presenceofit.com.au