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Building the Digital HRM Organization_Digital Transformation Skills


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Building the Digital HRM Organization_Digital Transformation Skills - principles, processes and toolkits

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Building the Digital HRM Organization_Digital Transformation Skills

  2. 2. • Deloitte Human Capital Trends (2018) – #2: People data • Formulation of 5 High Priority, Future-focused Strategic HRM Objectives and related roles: • The key roles of a Strategic Performance Advisor • Diagnosis of current HRM practices against the 10 Strategic Performance Advisor next practice criteria (Cotter, 2017) • Business executives expectations of HR roles • World Economic Forum Future of Jobs Survey (2018) – Top 10 Skills Requirements for the year 2022 PRESENTATION OVERVIEW
  3. 3. • The core competencies (intelligences) of HRM professionals • Diagnosis: Future-fit, career-minded HRM consultants (Cotter, 2017) • The building blocks of a Digital Organization • The Digital Toolkit for future-fit HRM consultants • The transformation roadmap to a Digital Organization • The key roles of HRM in digital transformation • Strategies to build and gain Digital Literacy (DQ) PRESENTATION OVERVIEW
  4. 4. THE FUTURE OF WORK “There are really three themes that’ll shape the future of talent - Artificial Intelligence and automation; the skills gap and the rise of independent work.” (Jeff Weiner, CEO LinkedIn) AGREE OR DISAGREE? WHY?
  5. 5. EVIDENCE-BASED HRM • Evidence-based HR refers to a process in which the organization evaluates any decision or process against data, real experience, expert opinions, and/or other types of information to ensure the decision is likely to have the desired outcome. • For this to work best, the “evidence” used should be purposefully sought out. • When data is taken from multiple sources, ensure it’s applicable within your context.
  6. 6. 5 HIGH PRIORITY STRATEGIC HRM OBJECTIVES AND RELATED ROLES • #1: Attract, acquire and select digitally talented and skilled people and promote a competent and competitive workforce i.e. quality of hire; Role: Cognitive and Intelligent Talent Broker • #2: Transform the HRM DNA to a digitally-enabled HRM operating model and design an automated Knowledge Management System; Role: Strategic Performance Advisor (SPA) • #3: Future-proof the organization, by developing succession plans; a measurement culture and generating real-time predictive business analytics and –intelligence; Role: Digital Futurist and –Analyst • #4: Develop an agile High Performance Organization (HIPO) culture, digital workspaces and -ethos and employee engagement; Role: Behavioural Economist • #5: Mainstream HRM into core business processes, by offering business valued solutions to key organizational problems. Role: Innovative solutions architect
  7. 7. STRATEGIC HRM “One of the mission-critical strategic HRM objectives is to mainstream HRM into the core business processes. HRM should be embedded in the business strategy and their value proposition should be ingrained in the organizational culture fabric. Key business decisions should not be taken in the absence of consulting with HRM.” (Cotter, 2018)
  9. 9. STRATEGIC PERFORMANCE ADVISOR (SPA) – 3 PIVOTAL POINTS (COTTER, 2017) • Strategy (e.g. embedding HR strategy into business strategy; the use of strategy maps; adopting a strategic mindset and applying strategic management principles and processes); • Business Intelligence (e.g. competitive predictive HR metrics and analytics and trouble-shooting solutions architects) and • Governance (e.g. HR policies and procedures; HR/people risk management, compliance with ethics and King IV corporate governance principles and - Human Capital reporting and HR Auditing)
  10. 10. CHANGE MESSAGE TO HR MANAGERS (Cotter, 2018) "HRM must be instrumental in and at the forefront of the I-Q-C-A-P drivers of business performance, namely: Innovation; Quality; Compliance; Agility and Processes (to optimize productivity), in their quest to transform and actualize to become strategic performance advisors."
  11. 11. DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR SPA • • #1 Embedding HRM strategy in business strategy and able to translate that strategy into deliverable actions • #2 Well-defined, implemented and reported HRM performance and ROI metrics (creating credibility and accountability) • #3 Generating business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions) • #4 Offering a professional, value-adding business proposition sensitive to and supportive of business needs, interests and strategic priorities • #5 Ongoing line management consultation, engagement, coaching and building trusting, collegial and mutually beneficial business relationships
  12. 12. DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR SPA • #6 HR Management and practitioners possess business and industry knowledge, acumen and insight • #7 HRM collaborates with line management to broker meaningful and impactful business solutions • #8 HRM processes, systems and practices are horizontally integrated (bundled), agile, responsive and stream-lined (that enhance productivity and efficiency) • #9 HRM is a transformational initiator, driver and implementer of business change • #10 HRM is technology-savvy innovator, enabling and leveraging best practices (e.g. CoE; Shared Services and e-HRM) • Review the research findings human-resources-officers-africa-hrm-cotter-phd/
  13. 13. STRATEGIC PERFORMANCE ADVISOR (SPA) – WIDEST COMPLIANCE GAPS (N = 133) Range Median Mean Standard Deviation 21-100% 57% 58% 15% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q3: Your organization's HRM function generates business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions) 1 49% Q2: Your organization's HRM function has well-defined, implemented and reported HRM performance scorecards and ROI metrics (creating credibility and accountability) 2 53% Q8: Your organization's HRM processes, systems and practices are horizontally integrated (bundled), agile, responsive and stream- lined (that enhance productivity and efficiency) 3 57%
  14. 14. STRATEGIC PERFORMANCE ADVISOR (SPA) – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q5: Your organization's HRM function engages, consults and coaches line management on an ongoing basis, thereby building trusting, collegial and mutually beneficial business relationships 10 68%
  15. 15. WHAT BUSINESS EXECUTIVES ARE LOOKING FOR IN A SPA? • Catalytic Driver of Change • Pro-active Business Thinker • Collaborative Consultant • Purpose-directed Coach • Delivery (results-oriented HR practices) • (Credible and Accountable) Performance Advisor • Strategic Facilitator
  16. 16. THE 3 CORE COMPETENCIES (INTELLIGENCES) OF HRM PROFESSIONALS • Business Literacy (BQ) • Financial Literacy (FQ) • Digital Literacy (DQ)
  17. 17. THE FUTURE-FIT CODE: 10 STRATEGIES TO FUTURE- PROOF YOUR HRM CAREER • Diagnostic link: HWJR5FW • Future-fit, career-minded HRM consultants will apply the following strategies: ❑ #1: Relevance ❑ #2: Differentiation ❑ #3: Unique Value Proposition (UVP) ❑ #4: Specialization ❑ #5: Agility
  18. 18. THE FUTURE-FIT CODE: 10 STRATEGIES TO FUTURE- PROOF YOUR HRM CAREER • Future-fit, career-minded HRM consultants will apply the following strategies: ❑ #6: Re-invention ❑ #7: Value Amplification ❑ #8: Next Dimension Thinking ❑ #9: Digital Literacy and -Citizenship ❑ #10: Hyperconnected Collaborator • Article link: fit-code-10-strategies-future-proof-your- career-charles-cotter/
  19. 19. FUTURE FITNESS LEVELS – WIDEST COMPLIANCE GAPS (N = 82) Range Median Mean Standard Deviation 42-100% 64% 65% 12% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q2: My professional status and -brand equity is typified by a high degree of differentiation, therefore I'm compensated at a premium rate (top dollar). 1 55% Q9: I'm a responsible and responsive digital citizen, who has mastered the ability to navigate, curate, analyze and communicate messages via digital media sources across an array of sophisticated technological platforms. 2 58% Q10: I'm a hyperconnected collaborator, with the analytical ability to penetrate, mine and harvest the business relationship potential and exploit mutually-beneficial collaboration opportunities within the scope of my business network and HRM/L&D community. 3 63%
  20. 20. FUTURE FITNESS LEVELS – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q5: I constantly demonstrate a high degree of resilience, flexibility and stealth-like agility, especially during turbulent times of change in the workplace. Review the research findings: check-chief-human-resources-officers- africa-hrm-cotter-phd/ 10 74%
  22. 22. THE DIGITAL TOOLKIT FOR FUTURE- FIT HRM CONSULTANTS • Design thinking • Analytics and Big Data • App-based functions • Talent Acquisition • Artificial Intelligence (AI) with cognitive processing
  23. 23. DELOITTE’S HCM TRENDS 2017 – THE RISE OF THE COGNITIVE RECRUITER • Leveraging new technologies—from social to cognitive • Evolution toward cognitive capabilities that build on mobile and cloud technologies, as well as social networks e.g. LinkedIn. • The more innovative ideas and solutions are centered around cognitive technologies such as artificial intelligence (AI), machine-to-machine learning, robotic process automation, natural language processing, predictive algorithms and self-learning. • Chatbots are becoming popular, including the recently launched Olivia, which guides candidates through an application process with sequenced questions.
  24. 24. DELOITTE’S HCM TRENDS 2017 – THE RISE OF THE COGNITIVE RECRUITER • IBM’s AI pioneer, Watson, is now moving into the space with three new technologies: ❑ A machine learning platform that ranks the priority of open requisitions; ❑ Social listening for an organization’s and competitors’ publicly available reviews on Glassdoor, Twitter, and newsfeeds and ❑ A tool that matches candidates to jobs through a “fit score” based on career experiences and skills. • These technologies take pre-existing social data and information and then apply advanced cognitive capabilities to deliver actionable analysis.
  25. 25. THE SCOPE AND IMPACT OF DIGITIZATION IN HRM • While focused until recently on topics like efficiency and direct access to HR data and services for individual employees, a new and expanded HR transformation is underway, led by employee experience, cloud capabilities including mobile and continuous upgrades, a renewed focus on talent, as well as the availability of new digital technologies like machine learning and artificial intelligence. • These capabilities are enabling HR re-imagine new ways of delivering HR services and strategies throughout the organization. For example: ❑ Use advanced prediction and optimization technologies to shift focus from time-consuming candidate screening processes to innovative HR strategies and business models that support growth ❑ Help employees with tailored career paths, push personalized learning recommendations, suggest mentors and mentees based on skills and competencies ❑ Predict flight risk of employees and prescribe mitigation strategies for at-risk talent ❑ Leverage intelligent management of high-volume, rules-based events with predictions and recommendations
  26. 26. RESEARCH-BASED READINESS OF HR TO DIGITIZE • 2018 Key Issues Research from The Hackett Group, Inc. (NASDAQ: HCKT). But while most HR executives recognize the future potential of digital technology to transform the enterprise as well as HR roles and operating models, less than half feel their organizations have the resources and capabilities in place to execute and support their company’s digital transformation strategy. • The research also found that urgent shortfalls exist in HR’s ability to support critical goals, including developing executives who can lead in volatile environments and enabling business strategy execution. • In addition, there are significant internal gaps, with limited ability to address some of the most critical development areas. • On the upside, HR organizations are now targeting many of these same areas for improvement initiatives in 2018.
  27. 27. THE 5-STEP TRANSFORMATION ROADMAP TO A DIGITAL ORGANIZATION • #1: Learn from the outside but stay true to your DNA. Companies need to embrace innovation and learn from digital natives—but not at the expense of their core strengths and cultures. • #2: Follow the map, trust the terrain. Leaders must articulate a broad strategic outline, but stay open to feedback from both within the organization and outside it. • #3: Place many bets. In light of the volatility and ambiguity of the market, CEOs need more than one approach to digital transformation. • #4: Digitize the organization. Leaders must rework the organizational structures of their companies to make them fully agile and digital. • #5: Build a talent pipeline. CEOs should hire new digital talent, but also train current staff in digital capabilities.
  28. 28. TRANSFORMATION ROADMAP TO A DIGITAL ORGANIZATION • You upgrade, we change • Do you have a plan? • Build a digital HR team • Re-think and re-invent • Innovate and Implement • Reskill and recruit • Benchmark • Embrace design thinking
  29. 29. COGNITIVE (THINKING) COMPETENCIES REQUIRED BY HRM • Design thinking • Innovative thinking • Strategic thinking • Conceptual thinking • Systems thinking • Analytical thinking • Critical thinking
  31. 31. THE FUTURE OF HRM METRICS & ANALYTICS? “HRM will have to migrate from the fundamentals of people science to the complexities of data science.” (Cotter, 2017)
  32. 32. THE KEY ROLES OF HRM IN DIGITAL TRANSFORMATION • A digitization is a process that requires the involvement of the whole company. • The HR function appears to be the right actor to coordinate it: ❑As the driver of transformations ❑As the owner of employee day-to-day experiences ❑As the warrantor of the alignment between business projects and the overall strategy ❑As a talent and corporate culture sponsor
  33. 33. THE KEY ROLES OF HRM IN DIGITAL TRANSFORMATION • Spread a digital culture to all generations of employees • Give a sense to the digitization through: charters, tool trainings, teleworking agreements, tutoring, reverse mentoring etc. • Respond to the constant needs regarding new skills and professions • Promote collaborative work inside the company • Support employees in their new roles/jobs • Increase employees’ participation in the digital transformation • Promote new functions and skills development • Push the employees to use new technologies and respond to the new HR challenges
  34. 34. STRATEGIES TO BUILD AND GAIN DIGITAL LITERACY (DQ) • Companies should respond to this challenge by building new pools of skilled digital employees. • To do so, they must understand who these potential employees are, where they can be found, and how they can be attracted and retained. • Companies also need to know what kinds of talent can be nurtured within the existing employee base; digital talent must come not only from the acquisition of new personnel for specific jobs but also from the development of digital skills in existing roles. • Companies must bring the entire organization along on the journey, creating a true digital culture and inculcating in their employees a deep understanding of the company’s digital imperatives and a mastery of select skills across all functions. • If the growth in digital talent outpaces the ability of the rest of the workforce to keep up, the company as a whole will be left behind.
  35. 35. STRATEGIES TO BUILD AND GAIN DIGITAL LITERACY (DQ) • To build and retain a strong pool of digital talent, companies must answer four important questions: ❑ They need to understand who is available on the market and who makes up the core of digital talent already in place across the business, and they need to identify the new digital job profiles and the number of digital employees required in the near future. ❑ They must next understand where to find the required employees over the medium and long term ❑ How to recruit and retain them. ❑ They need to understand what digital skills need to be nurtured and developed among their existing workers. Without skilled staff, there can be no digital transformation.
  36. 36. DIAGNOSTIC TOOLKIT • Role/Job Analysis • Strategic Performance Advisor • Future Fit HR Consultant • Strategic HR Planning • HRM Metrics and Analytics • Strategic Total Rewards Management (STORM) and • Succession Planning • HRM Auditing
  37. 37. LIST OF SOURCES • organization/digital-organization.aspx • organization-technology-how-gain-develop-digital-talent- skills.aspx • Deloitte Consulting LLP. 2017. Global human capital trends report for South Africa 2018. Oakland, CA: Deloitte University. • Deloitte Consulting LLP. 2018. Global human capital trends report for South Africa 2018. Oakland, CA: Deloitte University. • work/2018/05/16/hr-in-age-of-digital-transformation- 06167140 • The Hackett Group. 2018. HR Key Issues research, Enabling Enterprise Digital Transformation Takes Center Stage But Gaps in Critical Capabilities Persist. NASDAQ: HCKT. • hr/
  38. 38. LIST OF SOURCES • news-beat-hr-focused-on-digital-transformation • • strategies-future-proof-your-career-charles-cotter/ • resources-officers-africa-hrm-cotter-phd/ • yours-the-digital-hr-transformation-case- 18263?utm_source=peoplematters&utm_medium=interstiti al&utm_campaign=learnings-of-the- day&utm_source=peoplematters&utm_medium=interst itial&utm_campaign=learnings-of-the-day • which-artificial-intelligence-ai-is-revolutionizing-talent- acquisition-practices • the-strategic-maturity-of-hrm-and-ld-practices-africa
  39. 39. CONCLUSION • Key points • Summary • Questions
  40. 40. CONTACT DETAILS • Dr Charles Cotter • (+27) 84 562 9446 • • LinkedIn • Twitter: @Charles_Cotter • •