The document discusses the transformation of human resources (HR) in response to digitalization and new business challenges, highlighting the need for HR to evolve from an administrative role to a strategic partner. It identifies current shortcomings in HR effectiveness as perceived by CEOs and line managers, with significant implications for workforce engagement and capabilities. The report emphasizes the importance of adopting innovative practices, technological integration, and a focus on employee experience to meet the demands of a rapidly changing workforce landscape.

1. Human Resources Transformation
The Digitization Impact
Manish M Misra

2. The Journey So Far

3. HR Transformation 1.0
HR Operations
(75%)
HR Transformation
Organization
Effectiveness
(20%)
Business
Strategy (5%)
HR Operations
(10%)
Current HR Service
Profile
Targeted Future HR
Service Profile
INTEGRATION
TECHNOLOGY
PROCESSES
PEOPLE
HR
Strategic Partner Change Agent
Administrative Expert Employee Champion
Design and implement HR
programs that align / fit with the
business vision
Active Role in setting
strategic direction
Create cross-functional
collaboration & organization
readiness to accomplish change
initiative & performance results
Effective Transformation
& Change
Continue improvement of the HR
Process to Optimize operational
efficiencies & employee self- service
Process Optimization
& Efficiency
Develop employee competences
with continuous skills & knowledge
management; foster achievement /
performance recognition programs
Motivated &
Competent Personnel
Business Strategy
(50%)
Organization
Effectiveness
(40%)

4. HR Transformation 1.0
Business Partners Shared Services Center of Expertise
 Establish relationships with customers
– line /business unites
 Contribute to business unit plans
 Develop organizational capabilities
 Implement HR practices
 Represent center HR
 Log needs and coordinate HR services
 Front Office
 Deliver HR services
 Manage routine processes effectively
and efficiently
 Often using a single HRIS, intranets to
provide basic information and call
centres for specific queries
 May be outsourced
 Back Office
 Create HR frameworks
 Develop and introduce strategic HR
initiatives
 Specialized areas such as
compensation and benefits, employee
relations, learning and development,
talent management, OD, staffing,
diversity, and workforce planning
 Often depend on the business partners
to roll out programs to the business
Human Resources Has Made Significant Progress In Transforming
Itself…. But With What Results….

5. The Report Card
CEO view
58% of CEO’s state lack of business acumen is biggest issue
with HR (Hewitt Associates)
Line Manager view
58% of the line manager’s believe HR lacks the capability to
develop strategies aligned with business objectives (McKinsey)
Global Study
HR is not making the grade as companies move away from HR as
people administration, to a focus on people performance (Deloitte
2014)
87% of global workers are not engaged in their jobs (Gallup 2013)
34
%
Of CEOs felt that HR was
well-prepared to capitalize
on transformational trends
CEOs feel their HR isn’t ready for the task ahead
when asked how well- prepared the major
functions in their business were to capitalize on
transformational trends, only 34% felt their HR
was well- prepared end 9% said if was not
prepared at all.
HR Has Much To ProveOnly

6. The Report Card
First Generation HR Transformation Report Card
Reduce Cost B
Streamline technology B
Manage People Globally C
Shift HR focus from administration to
strategy D
Human Resources Function Is Struggling To
Meet The Challenges Of Today’s Business

7. The New Business Realities….

8. This Turbulent Environment Has A Name…..
An “Adaptive Response” is the only Way in VUCA World
For Volatility
Frequent and sudden
changes
For Uncertainty
Unpredictable patterns
of change
For Complexity
Complex problems and
opportunities co-exist
For Ambiguity
Contradictions and
confusion – unsettling
scenarios.
V U C A

9. The VUCA Impact
States of Organization
Tightly Coupled
 Physical coupling of people and
process
Hybrid
 Combination of physical and virtual
coupling of people and process
Loosely Coupled
 Virtual coupling of people and process
INFORMATION
Hierarchy To Wirearchy

10. Technology is everywhere & ……..
Learning to scale, reason with purpose and interact with human naturally
Social, Mobile, Analytics &
Cloud
Creating new standards of
engagement, collaboration and
networking
Artificial Intelligence,
Cognitive & Robotics
Massive impact on workflow
automation and mass personalization
Big Data and Automation
Ability to process multivariable
algorithms resulting in accurate
predictability, forecasting and
scenario analysis

11. Technology Impact… Business Models will change @ particular
information levels just like natural element changes its form at melting point.
In Nature In Business
Platinum 3,220⁰ Energy
Iron 2,800⁰ Utility
Nickel 2,651⁰ Manufacturing
Aluminum 1,221⁰ Travel
Zinc 787⁰ Healthcare
Lead 621⁰ Life Science
Tin 449⁰ Retail Banking
Sodium 208⁰ Insurance
Water 32⁰ News
Bromine 19⁰ Book Retailing
Mercury -38⁰ Movie Rentals
Chlorine -150⁰ Personal Communications
Nitrogen -346⁰ Maps
Hydrogen -434⁰ Research / Encyclopedia
Helium -458⁰ Classified Ads
RoomTemperature
Today’sInformationLevel
F

12. THE FIRST
INDUSTRIAL AGE
Provided the platform for
the Industrial Corporate
Model
STEAM
POWER
STEEL
ELECTRICITY

13. THE NEXT
INDUSTRIAL AGE
Laying foundations of the
Knowledge Corporate
Model
SOCIAL,
MOBILE, CLOUD,
ANALYTICS
AI, COGNITIVE,
ROBOTICS
BIG DATA,
AUTOMATION

14. The New Workforce…..
Man (Women) & Machine Collaborating will the New Workforce
Multi Generational
Always On the Move & Mobile Workforce
Multi Cultural Robotics Millennials

15. Millennial Expectations Are Changing Work
Workforce Impact
Millennials make more than 60% of the workforce
Germany, Japan, and even China and US will soon have
negative population growth.
41% workforce in US is Contingent Workforce, growing @1%
every year.
Long Term is less
than 2 yrs, Normal is
7 months
Job Hopping and Career
Shifts are new normal
Learning is the key to
retention
Their “ Team Mates ”are
the most important
people at work
Expect Feedback
weekly and
progression
annually

16. The Reality

17. The Reality…
Industry
Widget
Winners
Digital Winners Tipping Points
Book Retailing Borders Amazon
Borders Bankrupt 2011: Amazon market Cap, $99
Billion.
Movie Rentals Blockbuster Netflix
Blockbuster bankrupt 2011: Netflix Streaming Volume
Exceed Rentals in 2012 and Constitutes one- quarter
of U.S, Internet Traffic.
Mobile Phone Nokia Apple, Google
Nokia Market share at 1997 level, 3% of peak market
cap, $215 Billion.
Online
Communication
Platform
AOL Facebook
AOL value 95% from peak: Facebook Market Cap,
$48 Billion.
Photographs Kodak Flicker, Shutterfly Kodak Files for Bankruptcy in early 2012
Maps Rand McNally
TomTom,Garmin,
Google
Garmen Market Cap, $7 Billion.

18. The Reality…
In 2012, there were more than 10 times as many photographs taken than in
1992 and yet Kodak filed for bankruptcy
More news is being generated on a daily basis than ever and yet the Los
Angeles Times is bankrupt, The New York Times debt sits at junk status
Book Sales increased 27% in 2011 in the US alone and yet BORDERS
BOOKS Collapsed!
Encyclopedia Britannica Wikipedia
Year founded 1768 2001
Articles 65,000 4,086,999*
Languages 1 271
Words 40 million 2 billion
Updated Annually Real-time
Mistakes per article 2.92 3.86
Cost $729 Free

19. But Will These Jobs Really Go Away?
Of today’s jobs are predicated to be gone in 10
years ( Oxford Research Institute )
No, They Simply Change.
53
%
Up to
The Prediction……

20. Business Leaders Are Worried
Leaders not getting new
digital skills 6X more
likely to leave their org
within the next year
Believe digital will
disrupt their
industry
Whole new talent
base is needed to
compete
Organizations are not
correctly structured to
operate in this new
environment
Need a whole new
talent base to
compete
Don’t have the
right leaders
92%
87%
70%
6X
87%
70%
11%
Believe they the right
skills to compete
Only

21. Human Resources Response….
Integrated Solutions
Provider
Business Alignment &
Outcomes
New Innovative
Practices & HR
Infrastructure
Workforce Enter
Millennial Generation
HR TRANSFORMATION WAVE 2.0

22. New Transformation Principles
1
HR must be adaptive… & Responding
to Business Problems
2
From Silo Working to Supply
Chain Model
3
Must Become Data Driven &
Forward Looking”
4
Speed, Agility & Responsiveness
must match other parts of the
business environment

23. New Transformation Principles
5
One Size Fits All is Dead, Mass
Personalization is the key to success
6It is all about “Experience, Personal
learning , Reinvention & Fun”
7
Embrace Technology as a
enabler and partner

24. Innovative HR Practices
Data will proactively forecast people
challenges, issues and trends so
damage control can be done before the
event for effective talent management
Workforce planning will
become continuous,
collaborative, analytics driven
instead of annual exercise
Talent Acquisition Platform
manages employee referrals,
internal mobility and employer
branding in one solution power
with predictive intelligence,
process automation & real time
performance dashboard.
Simulations &
Gamification for
assessing the “best fit”
Performance assessment,
feedback and coaching
will become real time,
resolving issues quickly
Personalized
management of employee
based on their motivation
profile will increase

25. Innovative HR Practices
Compensation adjustment decisions will be
based maximum impact – maximum pay
Learning will be more and more anytime & any where.
MOOC ( Massive Open Online Courses)
Simulation, Gamification Driven
Embedded and Intelligent learning
Leadership assessment and development will
be more real time data based than core
psychological model based
Recognition will become data driven.
Metrics for recognition will emerge based
on company value and behavioural drivers
Career Mobility will assume “network
shape rather than vertical growth
Transactional HR activities will be
outsourced to service providers or driven
by self service platforms

26. New Rules Of Culture & Engagement
Dynamic measurement of
engagement as opposed
to static measures will be
required
Retention analysis
based on social data
activity analysis
Culture that accelerates team
work, breaks silo and keeps
connected
Use of social network will grow to
engage employees and further support
the building of employer brand
Career navigation
opportunities, building
relevant networks that
help employee complete
tasks successfully
Culture which instils
pride, respect and
happiness

27. Building The HR Infrastructure
Personal credibility, ability to change and reinvent
will become key to success
Predictive Data Analysis will drive decision making
in all HR practices
CoE and shared services model will change shape from
functional silos to integrated comprehensive solution provider
Web application first to Mobile application first
HR will necessarily have to learn the business well and
learn the language of business- finance very well
More line managers will shift to HR roles

28. The Future Is Now
And It’s All About People
…Reinvent HR…Recreate Possibilities

29. Thank You
Secondary Research Sources & Acknowledgement
Google Search
Cognizant Technologies
KPMG,Deloitte,PwC & other similar firms