Creating Value with Digital HR

Transform to the power of digital
Creating Value with Digital HR
Sharing insights
Jan Brouwer, SVP HR Transformation
Stockholm – November 5th, 2015

Copyright © 2015 Capgemini Consulting. All rights reserved.
Digital HR enables organizations in reaching their vision to deliver a digital organization
and connectivity on a global scale
2
Focus on
Digital
Global
 Business is a global ecosystem and the
organization uses scale to create synergies
Local
 All Business is Local oriented: Customers,
Brands, Services and regulatory &
commercial environments.
Connecting
 The organization connects people to people,
people to communities, and people to
information.
Empower
 They empower their people through the
existing business model
Key questions to answer
Typical Vision & Current Digital Transformations
questions at organizations
 The organization believes that Digital can
deliver significant benefits to their
organization
How to enforce the organization with HR to setup a digital
culture- and management style that drives the digital
transformation
How to attract, retain and grow digital talent on a global
scale
How to make HR a digital best practice case for the
organization showing the cost efficiency- and employee
benefits that it can bring

Trends in HR
Which opportunities need to be captured

Key HR Trends Europa
Leadership development and employee engagement are the key HR trends in Europe,
given the current challenges faced in terms of demographic shifts and talent shortages
4
Global HR
Trends and
Challenges
European HR
Trends and
Challenges
Key sectors -
Challenges
Global HR Challenges Global HR Trends
 Globally, the key factors resulting in challenges for the HR
are:
- Demographic shift
- Technology Shift
- Globalization
- Social, political and regulatory shifts
 Though some of these factors pose challenges to the HR in
Europe, the current economic scenario poses are major
challenge in terms of cost and productivity
- Pressure on cost reduction
- Managing productivity and profitability
- Demographic shifts
- Talent Shortage
Europe HR Challenges Europe HR Trends
0 10 20 30 40 50 60
Training
Workforce planning/talent…
Performance management
Leadership development
Engagement/retention
0 10 20 30 40 50 60
Workforce planning…
Succession planning
Performance management
Engagement/retention
Leadership development
HR Challenges
& Trends
 Decreasing STEM
graduates
 Ageing workforce
 Employee turnover
 Shortage of workforce
 Retaining and recruiting
top talent
 Incorporating
regulatory changes
 Digital skill gaps
 Employee turnover
Manufacturing Retail Financial Services TelecomSectors
Source: Capgemini Consulting: HR Trends July 2014

Driven by changing business demands and enabled by digitalization the
operating model of HR needs to change
Operational HR design trends
HR
Organizational
challenges
 Locally based while supporting a global organization
 Lowering cost and improving added value
 Being data driven and employee focused
 Partner of the business while being ahead of business
 Providing standardized services and personal service
 Enabling digital transformation while going though digital
transformation
The HR
business
partner role
HR business partners on
all levels in organization
No HR business partners
Functional
expertise
Center of expertise on
every HR area
New CoE’s
Commodity
activities
Own shared service
centers
Digital
 Focus on centralization of commodity HR activities
 Moving from outsourcing to Self-service for all
standardized transactional processes to reach the
‘digital’ stage
 Automation of the HRBP operational role
 Based on analytics CoE’s develop new policies and
tools and advice the business managers directly
 Development from HR specialists focused on
functional areas to combined centers of expertise
with other functional areas (e.g. finance) focused
on situations (e.g. mergers and acquisitions)
Organizational trends

Key digital trends across all HR functions
Digital is paving it’s way in Talent Acquisition, Organization Development, Engagement
and Operations which are the major cornerstones of a successful HR foundation
6
 Hiring Strategy
 Campus Relationship
 Channel Management
 Branding
 Vendor Management
 New Hire Touch Point
 Training
 Performance Management
 Career Development
 Leadership Development
 Communication
 Energizing Fun
 Employee Development
 Coaching Employees
 Retention Programs
 Compensation
Management
 R&R Programs
 C & B Implémentation
 Increase in usage of
technology as a means of
marketing
 Integrated search and use
of talent networks to
enhance candidate sourcing
 Advent of mobile
technology and app based
products enabling talent
acquisition
 Use of micro sites and
videos to enhance
candidate experience
 Increase in investment
towards SaaS in HR
 Shift in HR from operational
to strategic function
through embedded
analytics
 Influx of mobile and
decentralized employees
 Use of social media to
measure employee
influence
 Increasing use of
gamification in leadership
development
 Shift towards “facilitated
talent mobility strategy”
 Using Accelerated Learning
Methodologies in Training
 Shift from training to
integrated capability
development
TrendsHRPillars
Talent Acquisition Compensation & BenefitsEngagementsTalent Management
Source: Capgemini Consulting-Using Digital Tools to Unlock HR’s True Potential

Creating value with Digital HR
Our Point of View

HR needs to become digital to attract, retain and engage talent in a digital world
8
- Job seekers are increasingly using digital channels and
devices to search for jobs.
- An organization’s presence across digital channels has a
strong impact on job seeker preferences
- Crowd sourcing enhances the accuracy of performance
assessments by offering richer insights into an employee’s
performance, which in turn enables a fairer appraisal
- Digital technologies help organizations close the talent gap
faster
- Digital technologies enhances the efficiency of recruitment
processes
- There is a strong need for organizations to overhaul existing
performance management processes and align them more
closely with employee aspirations and entitlements. Since
45% of HR leaders believe annual performance reviews are
not an accurate appraisal of an employee’s work
- A strong employer brand plays a critical role in attracting
and retaining talent in a competitive marketplace
- Companies have to compete for the best talent with new
categories of players
- The talent war is manifest across the entire organization
- Critical leadership skills among the employees need to be
build internally to retain the high performers
- Gamification boosts employee learning and development
to successfully build critical leadership skills among its
employees
Digital HR challenges Digital enablers for HR
Recruitment
Employer brand
Performance
management
Learning &
development

Creating value with digital HR is based on several elements that collectively
determines the success of the organization enabled by analytics
9
Leadership & culture
o What is the impact of digital transformation on
leadership style and corporate culture
o What elements should be strengthened , and how
do you ensure that this is translated into concrete
working arrangements ?
Operating Model
o What is the HR Digital service portfolio that you
are delivering to the internal customers
o How do you organize around the digital service
portfolio including the supporting IT architecture
o How to optimize synergies but retain focus?
HR Standardization & Digitalization
o HR should move towards standardization and
digitalization in the functional, low value adding
areas in order to become a more strategic
business partner
Competences
o Does the organization have access to all necessary
digital skills and competencies concerning mobile,
analytics , and social creation?
o What kind of skills are you going to source or
outsource
Source: Capgemini Consulting-MIT Analysis – The Digital Talent Gap – Developing Skills for Today’s Digital Organizations
Our Vision on Digital Organizations
Necessary elements for effective digital HR enabled by analytics
HR analytics

Competences
 Realizing the organizations’
digital ambitions requires
specific digital competences
concerning mobile, social ,
creative and analytics
 What competencies are
already in the house, which to
develop or what to buy or
hire ?
 Which types of collaboration
or cooperation are
interesting?
 What does this mean for the
HR strategy?
Successful digital organizations are able to organize the right mobile, social ,
creative and analytics skills
10
Source: Capgemini Consulting-MIT Analysis – The Digital Talent Gap – Developing Skills for Today’s Digital Organizations
Technical Talent
Strong Understanding
of Business Drivers
Knowledge of
Technical
Underpinnings
Business
Professional
Creative
Analytics Social
Mobile
Clusters
CAPGEMINI’S DIGITAL SKILLS FRAMEWORK
Mobile Platform / UI design , technical knowledge, application development , cloud services and information security
Social Brand strategy , social and community management , online etiquette and customer service and PR
Creative Art direction , multi-channel design , copyright management, digital asset management
Analyticss Collect , analyze and interpret large amounts of data
“55% of Digital transformations fail due to lack of proper exertise” – MIT
With our Digital competence analysis we map missing digital skills in a short time

An optimal organizational structure represents the digital vision and ambition
of the organization
11
Operating model
 The top-level organizational
structure should be a
derivative of the online
ambitions and goals
 Based on the current and
desired situation , we
determine the optimal
transition path , including any
intermediate forms
 Next we detail the different
functional areas and roles
based on the current
organization and digital
competences
Digital Operating model archetypes
“digital is just a new
channel”
“Digital is an integral part of
the business”
“the business is driven by
digital”
Digital as seperate department Digital as expertise
Digital as strategic capability
“Organize the team in the department that is experiencing the greatest impact of the digital
transformation”
We have best practices that we use to accelerate the choice of organization

The transition to digital asks for a different type of leadership and culture in
order to be successful
12
Leadership & Culture
 Digital Successful
organizations are
distinguished by a high degree
of open collaboration and
breaking with traditional
hierarchical management
models and an obsession with
the customer
 How to get and keep the right
people on board?
 How to create a sense of need
for change ?
 How do you increase the rate
of change ?
Digital Leadership and culture requirements
“77 % of digital transformations fail due to lack of a proper culture”- MIT
Digital Culture
elements
 Open
 Creative
 Innovative
 Expressive
 Collaborative
 Team player
 Agile
 Authentic
CULTURE – is about values, attitudes, beliefs and behaviors that will help individuals
perform as a group toward acceptance of the Digital Transformation
Digitale Leadership competences
 Enabler of autonomy
 Agile decision maker
 Connecting entrepreneur
 Cultural aligner
 Digital explorer
 Innovative engager
 Leader example
Customers
enter the heart
of the
organization
Greater
reputational
risk
Digital is
personal
Better decision
making on big
data
Digital causes
all at once
Way of
working
is changing
From owning
to sharing
Digital is
always new
Key digital trends
We use our leadership competency framework in the design of the new way of working

HR is moving towards standardization and digitalization in the functional, low
value adding areas in order to become a more strategic business partner
13
HR Process simplification
 Customer focus via integrated
Business Partners
 Functional and operational HR
processes and policies are
standardized
 Outsourced Payroll
 One Cloud solution to support
the manager in his People
Management activities and to
support analytics
 Maximum use of self service
 Use of mobile and social apps
to support data entry at the
source
 Expertise clustering around
business themes and not HR
themes
HR Maturity Model
“standardize and digitalize the low value adding areas”
Opportunities for the organization
• Business driven (voice of costumer) definition of HR processes
• Define clear accountability and KPI’s for end-to-end processes that distinguish between cost
and value driven
• Standardize processes for transactional work using re-usable process building blocks
• Drive self-service by defining integrated functional requirements via customer use-cases
• Define a agile HR organization build around key processes follow business changes
With our HR operating model framework and HR best-practice toolbox we will guide the design
of the future proof HR organization

Data Analytics and predictive modelling can add significant value to existing HR
data and improve the company’s strategic advantage.
14
HR data analytics
 HR data analytics is an
evidence-based approach to
smarter decision making by
tracking past employee
activities to predict future
outcomes.
 It’s the application of
sophisticated data acquisition
and business analytics
techniques to HR data with an
aim of correlating business
data and people data
 HR is known to all too
frequently rely on trust and
relationships instead of data
to support it.
The value of HR analytics
Can you imagine all people decisions taken at your organization are based upon HR analytics?
Our Vision on Digital HR
Data driven strategies will become an increasingly important point of competitive
differentiation.
Level 1
Reporting analytics Inferential analytics
Traditional HR Analytics
Level 2
Predictive analytics Prescriptive analytics
Level 3 Level 4
Present focus
HR Analytics Maturity Model
Companies are shifting towards predictive and prescriptive analytics to gain foresights on their HR areas…
… but our experience reveals three root causes why it’s challenging to pave the way and make more
value from HR Analytics.
HR Analytics initiatives not
linked to corporate strategy
Analytic skills & information
management not in place
Technology is a driver, but
also a burden
1 2 3
 More accurate and impactful input for people decision making on board level
 More business relevant HR interventions
 Performance improvement of HR function
 Connect on a personal level to understand what people really care about

Financial and Service quality benefits can be realized when Digital HR is
implemented correctly
15
Benefits
 Since showcasing financial
benefits is crucial for gaining
key stakeholder buy-in it is
important to identify and
quantify all key costs and
benefits of the Digital HR
transformation
 Qualitative benefits are
equally important in gaining
buy-in and support, these
benefits should be
documented and referenced
throughout the entire Digital
HR transformation
Digital HR Benefits
“Quantitative & Qualitative outcomes is an area frequently scrutinized in the HR space, however HR
Transformations have clear and measurable value add for organizations ”- MIT
Digital HR Benefits
Financial benefits
 Consolidation of technologies
 Legal Cost Reduction
 Indirect savings from process
improvements
 HR Headcount reduction
 HR Salary Reduction
 Outsourcing
 External Spend consolidation
Service Quality Benefits
 Enhanced HR impact on the Business
 Lower cost and more effective service delivery model
 Capability for global people management
 Effective use of digital tools and streamlined technology
Source: Capgemini Consulting-Using Digital Tools to Unlock HR’s True Potential
With our proven approach we will track the benefits during the transformation

Creating Value with Digital HR

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