Joanna Harrop worked as an HR Business Partner and senior HR professional in all areas of HR to include transactional, transformational and project management in several corporations. Over the years Joanna developed a particular interest and expertise in organisational change and development supported by an effective and cost efficient HR performance.

1. Efficient and cost effective HR
HR Operating Models, Integrated Lean Six Sigma and HR Technology
Joanna Harrop

2. Joanna Harrop M.B.A., M.A.
Cass Business School, City University of London, United Arab Emirates
The University of Manchester, United Kingdom
The George Washington Business School, United States
Joanna Harrop is a Human Resources expert with 16 years of managerial experience gained in
global NASDAQ 100 and FTSE 100 corporations based in England and in the United Arab Emirates.
Joanna worked in all areas of HR and developed a particular interest and expertise in organisational
change and development supported by an effective and cost efficient HR performance. Her HR
recommendations were cited in professional CIPD publications and the Middle East Journal of
Business. She can be contacted on harrop.joanna@gmail.com.

3. Objective
This presentation will provide a brief guidance on key aspects determining the
effectiveness and cost efficiency of HR in organizations.
It will highlight the role of the correctly implemented and aligned with the rest of the
business HR operating model, the importance of an effective work methodology
(Integrated Lean Six Sigma) and the importance of deployment of HR technology.
It will provide an ample proposition of tools, metrics and monitoring systems, which
when used enhance effectiveness and cost efficiency of HR.

4. Human capital has been recognized as an organization’s greatest asset and the main
source of competitive advantage.
Thus, companies focus on EFFECTIVE and COST EFFICIENT HUMAN RESOURCES in order
to reduce internal costs and enhance business profits.
Deployment of HR technology enables effective and cost efficient HR services.

6. HR OPERATING MODEL

7. Effective and cost efficient HR Operating Model:
• Creates common framework for HR processes
• Is adjusted to the specific needs of the organization
• Maintains standard controls and compliance
• Allows for a greater degree of outsourcing and offshoring (if needed)

8. HRT

10. D. Ulrich model should be aligned with what organizational needs, examples:
A large number of HRBP, global HRSS
combined with HR help desk but no
CoE because HRBP are required to be
able to solve all HR issues.
HRBP for all main departments with a
specific operational expertise, CoE and
HR help desk with a shared payroll. No
HRSS.
HRBP, global HR help desk and HRSS and 3
tier CoE: global, regional and local levels)
HRBP, regional administrative service
centres and HR help desk together but
with payroll executed locally. No CoE, as
Leadership Team with HRBP and Strategy
Unit make all decisions.
HRSS for global operations combined
with CoE, HRBP and local payroll.
HRBP with Talent Development Specialists
placed in individual busines units. HR
Strategy Consultancy Unit and global HRSS.

11. Watch out!
Three key limitations that prevent the model from fully supporting the HR efficiency and
cost effectiveness:
(1) Limited HR Shared Services communication with the rest of the business
(2) Incorrect use of metrics and measurements within the organization
(3) Lack of participation of line management (non HR roles)

12. Limited HR Shared Services communication with the rest of the
business

13. Watch out!
Most frequent problem areas:
- HRBP overburdened with transactional workload.
- HRBP general understanding of business operations and strategy (training needs
assessment).
- Lack of use of technology for regular meetings/updates directly with the entire
business.

14. Incorrect use of metrics and monitoring within the organization

15. The use of metrics and measurements within the organization:
• Correct implementation of a clearly-defined people strategy.
• A strategic alignment matrix.
• Identification of core competencies.
• Human capital metrics.
• Balanced Scorecards (Norton and Caplan) and Key Performance Indicators.

16. Correct implementation of a clearly-defined people strategy
The HR People Strategy
↕
Organizational Effectiveness
▪ Is the HR strategy aligned with organizational goals?
▪ Are we building future workforce capability?
↕
Employee Engagement
▪ What is the opinion of internal clients about the HR service?
▪ Are the employees able to contribute an extra competitive advantage?
↕
HR Programs Effectiveness
▪ Are the HR programmes delivering planned results?
▪ Do various departments collaborate on the HR programmes?
↕
HR Function Effectiveness
▪ Is the HR function cost-effective?
▪ What are the future investments into Human Capital development?

17. A strategic alignment matrix will guide the correct measuring of identified individual
core organizational competencies against the organization’s performance level and
allow specific action plans to be established.
Organization’ Core
Competency
Strategic Importance
(1 = not important, 5
= very important)
Organization’s
Performance Level (1 =
very poor, 5 = very
good)
Priority
(Low,
Mediu
m or
High) Action Plan
e.g.
Client experience 5 4 High
Performance
Incentives.
Attrition/Turnover of
Staff 5 3 High
1. Employee
engagement
questionnaire. 2.
Revise: Recruitment,
induction processes.
3 Phases of
performance
management. 4.
Opportunities for
development
etc.

18. The core competencies should be identified and scored cross-functionally by
management in all organizational departments. The scores need to be placed in the
strategic alignment matrix, which clearly highlights areas for urgent action.

19. HCM Drivers Leadership Practices
Employee
Engagement Knowledge Accessibility Workforce Optimization Learning Capacity
HCM Practices
Communication.
Management’s
communication is open and
effective.
Job design. Work is
well organized and
taps employees’ skills.
Availability. Job-related
information and training
are readily available.
Processes. Work processes
are well defined, and training
is effective.
Innovation. New ideas are
welcome.
Inclusiveness. Management
collaborates with employees
and invites input.
Commitment. Jobs are
secure, employees are
recognized, and
advancement is
possible.
Collaboration. Teamwork
is encouraged and
enabled.
Conditions. Working
conditions support high
performance.
Training. Training is practical
and supports organizational
goals.
Supervisory skills. Managers
eliminate barriers, provide
feedback, and inspire
confidence.
Time. Workload allows
employees to do jobs
well and enables good
work/life balance.
Information sharing. Best
practices are shared and
improved.
Accountability. High
performance is expected and
rewarded.
Development. Employees
have formal career
development plans.
Executive skills. Senior
executives eliminate
barriers, provide feedback,
and inspire confidence.
Systems. Employee
engagement is
continually evaluated.
Systems. Collection
systems make information
easily available.
Hiring. New employees are
chosen on the basis of skill;
new hires complete a
thorough orientation.
Value and support. Leaders
demonstrate that learning is
valued.
Systems. Leadership
development and transition
systems are effective.
Systems. Employee
performance management
systems are effective.
Systems. A learning
management system
automates aspects of
training.
Human Capital Management matrix (Bassi, I., and McMurrer, D.)

20. Lack of participation of line management (non HR roles)

21. Lack of participation of line management (non HR roles):
• Better training on HR (soft skills, HR processes and HR technology)
• Improve ways to communicate with HRBP / HRSS
• Identification of possible other issues affecting engagement

22. Examples of tools to help in Identification of issues affecting engagement:
• Hackman and Oldham’s Motivating Potential Score (MPS) tool
• Surveys, 1:2:1 and Gemba Walk
• McGregor, L. and Doshi, N. tool
Source: hbr.org ‫׀‬ November 2015 Primed to Perform in McGregor, L. and Doshi, N. “How Company Culture Shapes Employee Motivation”.

24. INTEGRATED LEAN SIX SIGMA

25. Integrated Lean Six Sigma is a methodology based on two main concepts:
• Zero Waste
• 100 % Engagement
Both of the concepts support the HR department in achieving and sustaining effective
and cost efficient HR.

26. Zero Waste

27. There are three criteria for determining what adds value, adopted to the HR zero waste
perspective:
• Employee must be willing to wait/pay for the activity.
• The activity must be done right first time.
• The activity must effectively change the HR process, product or service.

28. Ways to reduce waste and make HR processes effective and cost efficient:
• Detailed process maps (assists with deselecting waste steps).
• Value stream maps (assist with change).
• Systematic performance monitoring and management.

29. Detailed process maps assist with:
• Deselecting waste steps
• Transparency of the cross functional cooperation of the HR functions
• Setting correct measurements / monitoring e.g. SLA (based on time required for each step)
Receive
HR
request
Review
HR
request
Update
HR
system
Receive
external
information
Update
HR
system
Raise
requisition to
Recruitment
Update
HR
system
Update
HR
system
Request calculations
from Payroll. Prepare
document

30. Detailed process maps help to clarify the process for everyone involved.
Usually there are at least 3 version of the same process:
(Source: The Rise Global, Process Maps)
There is a Technology available that can assist in creation of the process maps !

31. Value stream maps: can be used for HR service delivery waste reduction
during transition/change periods:
• Create a current state map showing how the HR services serve
employees today.
• Create a future-state map showing the reduction of waste and the
effects of the changes.
• Develop and implement a plan to reach the future state.
• Prepare new process maps.

32. Systematic performance Zero Waste monitoring among others provide:
• Dash Boards comparing: daily, weekly, monthly, quarterly etc. results e.g.. SLA, KPIs.
• Metrics monitoring fluctuation of work volumes.
• Metrics monitoring absenteeism.
Aims to provides REASONS for the above and detect and forecast TRENDS

33. 100 % Engagement

34. Ways to achieve HR and operational excellence through 100% People Engagements (in
Integrated Lean Six Sigma):
1. Basic IL6SG Training
2. Daily Management System
3. Hoshin Planning
4. Gemba Walks
5. Kaizen Ideas Programme

35. Basic Integrated Lean Six Sigma training to all employees assists in implementation of
continuous improvement culture, which improves effectiveness and cost savings.
Sets the transparency of what is expected and the CI mindset.

36. Daily Management System are routine 10 minute long morning meetings:
• Review of KPIs status from the previous day
• Propositions for improvements to exceed KPIs
• Requests and comments from the HR administrative/operations team
• Identifies issues that require root cause analysis
Aim is to:
• Engage and empower the workforce in proposing improvements
• Focused and result oriented culture

37. Hoshin Planning deployment allows for management of objectives. It is a 7-step
process used to succeed in 3-5 year plans. It eliminates the waste that comes from
inconsistent direction and poor communication.

38. Gemba Walks allows the manager to observe the real job on the shop floor level in
order to look for waste , opportunities to improve processes and engage with the
employees.

39. Kaizen Ideas Programme offers rewards and recognition for system improvements.
Reinforces the culture of continuous improvement where all employees are actively
engaged in improving the department / company’s operations.

41. TECHNOLOGY

42. The HR Operating System and Integrated Lean Six Sigma depend on deployment of HR
Technology for efficiency and cost savings:
• HR Data Management
• HR Requests / Enquiries
• Cloud technology:
- talent and development programmes
- e-HR technologies, intranet, apps and etc.
- communications, meetings/updates with the entire business.