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The HR Business Partner

The document discusses transforming the role of the HR business partner in a shared services model. It outlines the traditional HR business partner role versus the transformed role in a shared services environment. The key steps in transforming the role are to assess the current competencies and skills of HR business partners, define the new competencies and skills needed for the transformed role, and develop training and development plans based on gaps identified in the assessment. The timing of transforming the role should be integrated with the implementation of the shared services model.

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Copyright © 2015 ScottMadden, Inc. All rights reserved.
The Evolution of the HR Business Partner
A Discussion of the Changing Role of the HR Business
Partner in a Shared Services Model
June 2015
Copyright © 2015 by ScottMadden, Inc. All rights reserved.
Agenda
■ About ScottMadden
■ The HR Business Partner’s Role
■ Recognizing the Change
■ Transforming the HR Business Partner
■ Additional Considerations
1
About ScottMadden
Copyright © 2015 by ScottMadden, Inc. All rights reserved.
 Unique perspective built on 30 years of
energy experience
 Solutions for clean and renewables sources
of energy, smart energy management, and
sustainability
Who We Are
3
ScottMadden is a management
consulting firm with more than 30 years
of deep, hands-on experience.
We deliver a broad array of consulting
services—from strategic planning
through implementation—across many
industries, business units, and
functions.
WHAT IT TAKES
W E D O
TO GET IT DONE
R I G H T
 More than 2,400 projects
 More than 300 clients including 20 of the top
20 energy utilities
 Every business unit, every function
ENERGY
 More than 1,100 projects
 Clients range from entertainment to energy
to high tech
 Unmatched experience with more
clients and more solutions
CORPORATE&
SHAREDSERVICES
CLEANTECH&
SUSTAINABILITY
Copyright © 2015 by ScottMadden, Inc. All rights reserved.
Our experienced team has been a pioneer in corporate and
shared services since the practice began decades ago. We
employ deep, cross-functional expertise to produce practical,
measurable solutions.
E X P E R I E N C E
We have helped our clients with business case development,
shared services design, shared services build support, and
implementation.
S E R V I C E S
We have completed more than 1,100 projects since the early 90s,
including hundreds of large, multi-year implementations. Our
clients range across a variety of industries from entertainment to
energy to high tech. Our areas of expertise span the spectrum of
middle and back office corporate and shared services.
S C O P E
Our corporate and shared services
knowledge, expertise, and experience are
unmatched—no other firm has helped more
clients with more unique solutions.
Corporate & Shared Services: Unmatched Experience
4
DESIGN
BUILD
ASSESS
ANDPLAN
IMPROVE
 Strategic planning
 Feasibility analysis
 Benchmarking
 Leading practice assessment
 Performance evaluation
 Project planning
 Leadership education and buy-in
 Staff evaluation
 Change readiness assessment
 Site visits
 Project management
 Service and transaction center build
 Detailed organizational design
 Staffing
 Process redesign
 Technology design, selection,
implementation, and support
 Education and training
 Facility design and setup
 Change management
 Sourcing implementation
 Current state analysis
 Future state design
 Business case development
 Service delivery model design
 Work scope delineation
 Sourcing evaluation
 Organizational design
 Technology evaluation
 Transformation planning
 Implementation planning
 Change management
 Analytics setup and deployment
 Operations improvement
 Governance
 Service expansion
 Cost reduction
 Process redesign
 Technology upgrade
 Merger and acquisition integration
 Field resource development
 Customer satisfaction measurement
 Metrics and performance management
5
Capabilities

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The HR Business Partner

  • 1. Copyright © 2015 ScottMadden, Inc. All rights reserved. The Evolution of the HR Business Partner A Discussion of the Changing Role of the HR Business Partner in a Shared Services Model June 2015
  • 2. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Agenda ■ About ScottMadden ■ The HR Business Partner’s Role ■ Recognizing the Change ■ Transforming the HR Business Partner ■ Additional Considerations 1
  • 4. Copyright © 2015 by ScottMadden, Inc. All rights reserved.  Unique perspective built on 30 years of energy experience  Solutions for clean and renewables sources of energy, smart energy management, and sustainability Who We Are 3 ScottMadden is a management consulting firm with more than 30 years of deep, hands-on experience. We deliver a broad array of consulting services—from strategic planning through implementation—across many industries, business units, and functions. WHAT IT TAKES W E D O TO GET IT DONE R I G H T  More than 2,400 projects  More than 300 clients including 20 of the top 20 energy utilities  Every business unit, every function ENERGY  More than 1,100 projects  Clients range from entertainment to energy to high tech  Unmatched experience with more clients and more solutions CORPORATE& SHAREDSERVICES CLEANTECH& SUSTAINABILITY
  • 5. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Our experienced team has been a pioneer in corporate and shared services since the practice began decades ago. We employ deep, cross-functional expertise to produce practical, measurable solutions. E X P E R I E N C E We have helped our clients with business case development, shared services design, shared services build support, and implementation. S E R V I C E S We have completed more than 1,100 projects since the early 90s, including hundreds of large, multi-year implementations. Our clients range across a variety of industries from entertainment to energy to high tech. Our areas of expertise span the spectrum of middle and back office corporate and shared services. S C O P E Our corporate and shared services knowledge, expertise, and experience are unmatched—no other firm has helped more clients with more unique solutions. Corporate & Shared Services: Unmatched Experience 4
  • 6. DESIGN BUILD ASSESS ANDPLAN IMPROVE  Strategic planning  Feasibility analysis  Benchmarking  Leading practice assessment  Performance evaluation  Project planning  Leadership education and buy-in  Staff evaluation  Change readiness assessment  Site visits  Project management  Service and transaction center build  Detailed organizational design  Staffing  Process redesign  Technology design, selection, implementation, and support  Education and training  Facility design and setup  Change management  Sourcing implementation  Current state analysis  Future state design  Business case development  Service delivery model design  Work scope delineation  Sourcing evaluation  Organizational design  Technology evaluation  Transformation planning  Implementation planning  Change management  Analytics setup and deployment  Operations improvement  Governance  Service expansion  Cost reduction  Process redesign  Technology upgrade  Merger and acquisition integration  Field resource development  Customer satisfaction measurement  Metrics and performance management 5 Capabilities
  • 7. Copyright © 2015 by ScottMadden, Inc. All rights reserved. What We Do – Human Capital HR is a core specialty at ScottMadden and has been since our inception in 1983. As such, we have a dedicated human capital practice that consults across geographies and across industries, including aerospace, consumer products, defense, education, energy, entertainment, healthcare, manufacturing, pharmaceuticals, retail, technology, telecommunications, transportation, and others. Whether we are improving talent management programs, revamping processes to ensure effectiveness and regulatory compliance, designing and implementing new service delivery models, expanding existing operations, or evaluating outsourcing opportunities, we ensure our clients achieve the business value desired. 6 HUMANCAPITALSERVICES  Talent management strategy  Talent management  Organization design and build  Process redesign  Competency development  System requirements identification  Implementation planning T a l e n t T r a n s f o r m a t i o n H R T r a n s f o r m a t i o n  HR transformation strategy  Service delivery model design  Business case development  Implementation planning  Implementation support/project management  Operations expansion O r g a n i z a t i o n T r a n s f o r m a t i o n  Strategic HR and business goal definition  Work realignment  Organization design  Business case development  Implementation planning H R A n a l y t i c s  Organization launch  Model development  Dashboard creation
  • 8. The HR Business Partner Role
  • 9. Copyright © 2015 by ScottMadden, Inc. All rights reserved. 8 Leading Practice HR Service Delivery Model The HR Business Partner Role Vendors Employees Line Managers Centers of Expertise (COE)  Design programs  Develop and govern policies  Deliver specialty services to Groups  Provide Tier 3 support for Solutions Center Self-Service (Tier 0)  Portal/Knowledgebase  Interactive Voice Response Solutions Center (Tier 1 and Tier 2)  Answer basic questions  Perform transactions  Provide administrative support  Run and distribute reports  Analyze routine data HR Business Partners  Advise and consult with Group leaders and managers  Identify and address Group HR issues  Assist in the design and implementation of COE programs  Liaise with COEs Customers Service Interface/ Service Delivery Strategies, Programs, and Policies Key Attributes:  Structures and delivers services based on type of work performed  Leverages centralized and decentralized components  Heightens focus on the customer  Increases service delivery at entry or lower service tiers  Leverages technologies  Focuses on proactive analysis and responses  Defines services clearly and bases services on customer needs
  • 10. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Service Delivery Model – Service Center The service center generally handles a wide range of administrative and transactional activities, such as general employee inquiries and data updates ■ The service center is staffed with customer care-oriented employees that may or may not have HR experience ■ Employee inquiries and transactions may be handled via phone, chat, or online capabilities ■ Service center staffing varies based on service scope, deployed technologies, geographies served, and other similar service delivery design elements ■ The split between tier 1 and tier 2 staffing varies depending on service scope, but can approach 50 – 50 ■ A continuous review of operations and data to identify and address issues proactively and expand scope based on business needs is the key to the service center’s sustained success 9 The HR Business Partner Role Tier 1  Administrative Support  Data Entry  Inquiry Management  System Support  Transaction Support Tier 2  Employee Relations  Leaves Management  TA Administration  Workforce Administration Support from Third-Party Providers
  • 11. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Service Delivery Model – Tier 3 Centers of Expertise (COE) own and direct the programmatic aspects of human resources, such as program design and deployment, policy development and interpretation, and enterprise-wide functional data collection and analysis ■ COEs usually exist for Benefits, Compensation, Employee Relations, Labor Relations, Talent Acquisition, and/or Talent Management • HRIS is frequently grouped with an HR Operations organization that includes the service center and continuous improvement ■ Staffing levels vary greatly for individual COEs and are influenced by service scope, deployed technologies, geographies served, and other similar service delivery design elements ■ For COEs to be most successful, it is important that they report centrally. However, we see a variety of staffing models with respect to where resources are located 10 The HR Business Partner Role Tier 3  Employee/Labor Relations  Global Mobility  Talent Acquisition  Talent Management  Total Rewards Functional Specialists
  • 12. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Service Delivery Model – HR Business Partners HR Business Partners work with leaders and managers to facilitate the success of human capital-related business goals ■ Business partners are focused on advisement activities and strategic interventions • This work often shifts based on business goals, strengths, and weaknesses ■ If possible, business partners are deployed locally. In organizations with wide geographic footprints or a large number of locations (e.g., retail), business partners may be organized regionally or in ‘pods’ ■ Business partner staffing generally ranges between one HR professional per 250 to 500 employees. Regional deployment models frequently fit this range, but required travel needs to be considered as staffing levels are set ■ A key to the success of a leading practice service delivery model is a complement of well skilled business partners. Critical skills include analytical, business acumen, communication, organization, problem solving, and self- directedness 11 The HR Business Partner Role HR Business Partners  Employee Relations Investigations  Labor Avoidance/ Arbitration Support  Talent Advisement  Program Implementation  Compliance Management
  • 14. Copyright © 2015 by ScottMadden, Inc. All rights reserved. • Manage Talent • Develop Leaders • Drive Performance • Optimize Work Life Change in Roles and Responsibilities Recognizing the Change 13 Transformed ModelTraditional Model Transformed/ Outsourced Re-aligned/Retained Administration (20%) Strategy and Policies (20%) Operations and Programs (60%) Strategy and Policies (5%) Operations and Programs (30%) Administration (65%) ~45% of administrative workload shifts to the HR service center HRBPs remain focused on the business and human capital strategies.
  • 15. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Change in Roles and Responsibilities (Cont’d) Unfortunately, the business often looks at the HRBP as an administrative support function versus a strategic partner, because typically the majority of the HRBP’s time is spent supporting people movement and changes within the organization prior to implementing the new service delivery model. Recognizing the Change 14 Delivery Channel Breakdown by Position 0% 20% 40% 60% 80% 100% VP / Director Manager Specialist HR Rep. / Gen. HR Asst. / Coord. Contractor Liaison Strategic Functional Advisement Transactional Knowing your current state activity breakdown for the HRBP and across the HR function will help you understand and quantify the degree of change required for the organization. This example shows that the HR Generalist in this company spends a significant amount of time on transactional activities despite also having HR assistants on their staff.
  • 16. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Overlooking the Change Required During an implementation of a new service delivery model, a lot is changing and the change management and training associated with new roles and responsibilities is critical. Recognizing the Change 15 HRBPs are assumed to have the skills and competencies required to perform in their new roles without being trained appropriately. Population Jan ‘12 Feb ‘12 Mar ‘12 Apr ‘12 May ‘12 Jun’12 Jul‘12 Key Project Events Executive Committee HR Leadership HR Managers All HR Business Leadership All Employees Change Agents 8 9 3 4 5 1 2 Marketing Campaign Simulation Training Process Finalization Dev Training Materials 6 7 10 Technology Planning Technology Build Content Load System Testing Go Live 11 12 14 15 16 1713 18 19 22 23 24 25 27 28 29 30– Weekly Touch Points 21 26 20 Change activities tend to focus on:  Redesigned HR processes  Start/stop/continue activities  Customer impacts  HR impacts  Service center technologies  Service center processes What’s Missing ??
  • 17. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Competency Shift As a result of the HRBP’s change in responsibilities from a role more administrative in nature to a role more strategic in nature, there is a change in the competencies required for the position. Recognizing the Change 16  Knowledge of the Business  Analytical  Problem-solving  Communication  Systemic Thinking  Ambiguity (ability to deal with)  Adaptability  Organization  Teamwork  Insightful  Knowledge of the Business  Attention to Detail  Time Management  Process Management  Customer Focus  Communication  Self-directedness  Teamwork New CompetenciesOld Competencies Strategic Shift
  • 18. Transforming the HR Business Partner
  • 19. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Timing and Approach Ideally, the role of the business partner is examined and transformed during the implementation of the shared services model. However, this process can also be done at a later point in time if it was not completed initially. Timing considerations include: ■ Integration with shared services implementation plan • Process redesign • Staffing • Training ■ Integration with the organization’s performance management cycle There are three main phases in transforming the role of the HR business partner: Transforming the HR Business Partner 18 AssessDefine Develop
  • 20. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Define Assess Develop Define In the Define phase, it is important for the organization to clearly identify and communicate to the business what constitutes a successful HR business partner in the new organization. Transforming the HR Business Partner 19 Existing Competency Model • Does a common competency model exist within the organization? • Does it reflect the future needs for HR business partner role? If not, what else is needed? • Do you have agreement to define new competencies if needed? Customer Input • How will you gather customer input as you define the future needs? • What process will you use to capture this information? • Who needs to be involved? Competency Definitions • Are there clear, easily understandable definitions for the competencies with examples? • Have you defined “what good is”? • How can you relate the competency descriptions and desired performance to the HR business partner job activities?
  • 21. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Assess During the Assess phase, the organization will design and conduct the assessment of the HR business partners, which will result in a cross-company view of the strength of your HR business partner community and potential opportunities for improvement. Transforming the HR Business Partner 20 Define Assess Develop Methodology and Timing • What methodology will be used to complete the assessment? Web-based survey, interviews, other? • Will multiple raters be used? Who and how many? • Will you use a self-assessment to supplement other raters? • How much time will you allow for completing the assessment? Review Process • Will the approach be piloted with a test group? • Will managers/supervisors have an opportunity to review results before they are final? • Will a review panel be leveraged to compare results and ensure consistency across areas? • What weighting will be given to inputs from different raters? Communications • How will you communicate the assessment to the participants and overall organization? • What are the important messages? • How can you minimize the perceived impact to those who are being assessed?
  • 22. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Develop The Develop phase involves analyzing the results of the assessment and determining how gaps will be closed in skill levels. By readily communicating training plans as a result of the assessment, a message is delivered to your HR business partners that you are willing to invest in them as well as the new service delivery model. Transforming the HR Business Partner 21 Define Assess Develop Sharing Results • Who will communicate the results of the assessment with the HR business partner? • Will the feedback be provided during the annual performance review? • Will a separate discussion related to the transition of the HR business partner role be needed? Transition Needs • What are the criteria for determining which employees to develop versus redeploy? • What training will be needed to develop staff to meet future needs? • What tools and process changes are needed to support the changes? Ongoing Measurement • Will the assessment be repeated at regular intervals to measure success? (e.g., annually) • How will you measure success?
  • 24. Copyright © 2015 by ScottMadden, Inc. All rights reserved. Potential Issues In addition, aspects of the new design may prove to make the transformation of the HR business partner difficult to achieve. ■ Ineffective process redesign • Limited use of manager self-service • Required HR approvals ■ Indirect reporting relationship to HR • Differing priorities for the business • Differing priority for the individual ■ Inability to appreciate HR’s strategic value • Inability for the business to see HR in any other respect than an administrative support function Additional Considerations 23
  • 25. Copyright © 2015 by ScottMadden, Inc. All rights reserved. 24 Ensuring Success Additional Considerations Ultimately, all three of these elements are needed to ensure a successful transition of the HRBP. Strategic Partner Aligned HR Vision Business Alignment Desired Competencies