The Rough Guide to... A New Business Model for HR

Consult, Create, Transform The Rough Guide to… A New Business Model for HR February 2013

About Me Jim Lefever Director, HR & Change Management at HR2BE http://au.linkedin.com/in/jimlefever/2 The Rough Guide to… A New Business Model for HR

Consult, Create, Transform Where Are We Now?

The Economic Environment • Policy actions have lowered acute crisis risks in the Euro area and the US. • Europe’s return to recovery, after protracted contraction, is delayed. • Macro uncertainty is impacting business plans and stability. • US “Fiscal cliff” avoided but the lemmings are still gathered at the edge. • Everything being equal, global growth could be stronger than projected. • Downside risks remain significant. • In Asia-Pacific; • China will see a cyclical bounce, though structurally, growth is slowing. • GDP growth in India forecast at 5.5% in the current financial year. The current account deficit is expected to be wider in third quarter on the back of slowdown in net exports of services and larger outflows of investment income payments. • Australian resource investment boom is likely to peak in 2013, but exports are expected to recover and housing investment is expected to stop declining. • Japan’s economy should improve as the global economy improves. However, in the near term, political tensions with China will impact GDP . • South Koreas domestic risks like declining home prices are fading and the economy is expected to grow 3.4% next year.Sources:1. Societé Generale; Heres What The World Will Look Like In 2013 And Beyond. Link2. IMF; World Economic Outlook Update. Link4 The Rough Guide to… A New Business Model for HR

Core Implications for Business Increased investor pressure for growth and performance means that there will need to be a greater drive on; • Improving Productivity • Identification and implementation of New Revenue streams • Optimisation of Costs • Enhancing the Customer experience • Harnessing Innovation • Utilisation of current & emerging Technologies • Retention of necessary IP and Talent5 The Rough Guide to… A New Business Model for HR

2013 Key Focal Areas for HR Productivity Transformation Performance Of the HR Team Talent Advanced Predictive Analytics Technology – Cloud, Apps, Innovation & Tablets CreativitySource:1. The Next Step “HR Business Outlook FY13” February 2013, Australia6 The Rough Guide to… A New Business Model for HR

But how is HR often perceived? • HR doesn’t understand the Business imperatives • Is not a commercial partner • Not engaging at the right levels in the right way • Process police, too bureaucratic • Low value add • Focus only on the transactional • Not forward looking • Doesn’t ask the right questions • Reactive, not proactive7 The Rough Guide to… A New Business Model for HR

Consult, Create, Transform So What Can We Do?

“It’s time to climb the Value Chain. HR must become a Business. A business that flows, with a structure complementing the business flow. That understands its customers and their needs, capable of balancing the strategic with the transactional. Recognising and using partners, both old and new, where appropriate, and embracing new technologies. Every business needs a brand, and a mission, and allows for customer queries, adopting a consulting focus to deliver solutions; continuously innovating, communicating and measuring the right things.”9 The Rough Guide to… A New Business Model for HR

It’s time to climb the Value Chain HR as a Business Refine Relationship & Delivery Channels Value Refine Services & Solutions Segment & Target Customers Adoption of New Model “Fire Fighting” Time10 The Rough Guide to… A New Business Model for HR

HR must become a Business Build Define & Design Deploy & Run Partner Customer Customer Network Segmentation Relationship Core Capability Service Solution Delivery Customer Portfolio Design Channel Cost Net Of Delivery Investment & Return Benefit11 The Rough Guide to… A New Business Model for HR

A Business that Flows 1. ID & Segment 2. Customers Define & Refine Needs 6. 3. Continuously Design improve Solutions to portfolio Needs Customer 5. 4. Manage Optimised Customer Delivery Relationship12 The Rough Guide to… A New Business Model for HR

With a Structure complementing the Business Flow Build Define Design Deploy Run HR Portfolio HR Business Partners Customer Needs Analysis Workforce Planning / Strategic Resourcing HR Capabilities / Lines of Business Comp & Bens, L&D, Recruitment Solution Delivery & Change Management Cross Functional Projects, Resource Utilisation, Metrics & Reporting, Employee Engagement Employee Relations HR Operations, IR HR Help Desk First Contact, Case Management13 The Rough Guide to… A New Business Model for HR

That understands its Customers and their Needs, Note: All figures indicative only Learn14 The Rough Guide to… A New Business Model for HR

Capable of balancing the Strategic with the Transactional New Customer Escalation Business WFM GL&D Recruit Specialist One Advice WH&S Point of Contact1 Business Employees HR C&B Partner HR Help Desk ER /IR Expat Mgt Intranet & HRIS SPOC will change dependent upon Solution being delivered to the Customer Solution Delivery Process & ComplianceNote:1. Depending on solution being delivered, either HR Business Partner or HR Project Manager15 The Rough Guide to… A New Business Model for HR

Recognising and using Partners, both old and new, where appropriate, Example Outsourcing Areas; • HR Strategy Development • HR Projects • Succession Planning • Talent Management • Organisational Design • Change Management • HR Help Desk • First Contact • Case Management • Recruitment • RPO • Inpat/Expat Management • Learning & Development • Specialist Advice • Creation of specialist reward plans e.g. Sales • Industrial Relations negotiations16 The Rough Guide to… A New Business Model for HR

And embracing new Technologies. • Greater utilisation of Tablets & Smartphones; • Mobile Optimised (HTML5) websites • Targeted microsites for “campaigns” • HR Apps (e.g. ADP Mobile Solutions, BizX Mobile, Kronos Workforce Mobile) • Moving deeper into the Cloud; • CRM & Sales Performance Management (e.g. Salesforce) • HRIS (e.g. Oracle, SAP) • Performance Management (e.g. SuccessFactors, Kapta) • Learning Management Systems (e.g. Topyx, Moodle) • Recruitment (e.g. Taleo, PageUp) • Digging in with Big Data and Talent Analytics • Is the employment brand competitive? • Are the right candidates being attracted? • Which recruiting sources are delivering the best candidates? • Are any of the teams likely to put the business at risk? • Is the right talent on board to take the company where it needs to go?17 The Rough Guide to… A New Business Model for HR

Every Business needs a Brand We act as the key supplier of HR Services to the business, providing structured Solutions targeted at And a Mission business needs, supported by a strong Services Portfolio and commercially focussed Core Capability.18 The Rough Guide to… A New Business Model for HR

And allows for Customer queries Business Partners – Strategic Influencers T4 Employee Relations – Escalation/Investigation T3 HR Help Desk – Case Management T2 HR Help Desk – First Contact T1 Web / Intranet – Self Service T0 Manager & Employee Self Service19 The Rough Guide to… A New Business Model for HR

Adopting a Consulting Focus to deliver Solutions; Review Implementation Solution Sign Off Solution Development Needs Qualification Customer Needs Continuous Improvement20 The Rough Guide to… A New Business Model for HR

Continuously Innovating, For Example: • HR2BE to Leaders - the Art of Partnership H R • Leaders Support Site • HR Calendar for Leaders with Outlook upload capability • HR Podcasts • Voice of Customer Survey • Lean Six Sigma of Key Processes21 The Rough Guide to… A New Business Model for HR

Communicating, • Face to Face • Weekly Blog • Twitter • Branded Messaging • Business Briefings • Case Studies • White Papers • Quarterly “Town Halls” • Leadership Meetings • Business Unit Meetings22 The Rough Guide to… A New Business Model for HR

And Measuring the Right Things! • Return On People Employed • Value Added per Person • Average Cost per Person • Cost of Turn-Over • Leave Liability23 The Rough Guide to… A New Business Model for HR

About Us: Core Solutions: • HR2BE work with small and medium • HR Audit businesses to put in place really simple, • HR On Demand really effective and pragmatic Human • HR Foundations Resource strategies and actions that will save you money, minimise your risk and • HR Projects increase productivity. • HR Strategy • Our fully qualified and experienced team Contact us to find out more: can be engaged to deliver a simple Jim.Lefever@hr2be.com.au policy or single project, such as a new http://www.hr2be.com.au performance management system, through to acting as your outsourced HR partner on a retained basis. We can help you by drafting employment contracts, Human Resource processes, HR training or to put in place a full Human Resource program of works.24 The Rough Guide to… A New Business Model for HR

Consult, Create, Transform

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The Rough Guide to... A New Business Model for HR

by Jim Lefever on Feb 14, 2013

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