10 things HR transformation

10 Things | HR TransformationThe 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 Transformationis 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 Services
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
HR will always be transactional in nature. Record keeping is generally good, but reporting and analysis is generally poor
Partnering
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 skills
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
HR is skilled in assessing applicants and conducting applicable assessments – the typical “psychology” profile of HR is still very prevalent
Functional services
HR provides reasonable services in the Hire-to-retire group of activities
Record keeping
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.
Customers
Customer services is core to HR, but the target is changing to include line customers and vendors
Process
Research indicates that <55% of HR departments that have redesigned processes are seeing the benefits – Why?
Technology
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
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 departments
HR Cost
HR/ Staff ratio
Customer Satisfaction
HR programme effectiveness
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 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 TransformationThe 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, business environment.
Stakeholders
Strategic Advisor
Talent creator
Counsellor & leadership enhancer
Change designer
Organisation structure & environment creator
Performance & rewards program creator
HR service delivery & vendor manager
Regulatory HR generalist/risk manager
Corporate governance consultant
The POIT License
CEO
Shareholders
Service Supporter
Executive & non-executive directors

10 Things | HR TransformationHR Service Delivery Model
Stakeholder
value
The POIT License
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.
Customers
The HR roles
Touch points
HR strategy
Business strategy

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

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10 things HR transformation

by Rob Scott on Jun 03, 2011

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10 things HR transformation — Presentation Transcript