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HR Transformation: prizes and challenges

Institute for Employment Studies1the institute for employment studiesHR Transformation: prizes and challengesPeter ReillyDirector HR Research and ConsultancyAgendazWhat is hr transformation ?zWhat prizes does it bring?zWhat challenges need to be met?zThe available solutionsthe institute for employment studiesHR TransformationInstitute for Employment Studies2 Dimensions of HR transformationAutomationConsolidationSta ndardisationWhat s involved in automationzIntegrated records(and payroll) systemszBetter MIzInformation through intranetzSelf servicezStand alone e-systemszDocument management & work flowWhat s involved in standardisationzRe-engineering processeszTo exit, transfer & simplifyzUsing best practice to ensure quality and consistencyzAllowing internal and external benchmarkingzTo obtain standard systems?

Institute for Employment Studies 1 the institute for employment studies HR Transformation: prizes and challenges Peter Reilly Director HR …

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1 Institute for Employment Studies1the institute for employment studiesHR Transformation: prizes and challengesPeter ReillyDirector HR Research and ConsultancyAgendazWhat is hr transformation ?zWhat prizes does it bring?zWhat challenges need to be met?zThe available solutionsthe institute for employment studiesHR TransformationInstitute for Employment Studies2 Dimensions of HR transformationAutomationConsolidationSta ndardisationWhat s involved in automationzIntegrated records(and payroll) systemszBetter MIzInformation through intranetzSelf servicezStand alone e-systemszDocument management & work flowWhat s involved in standardisationzRe-engineering processeszTo exit, transfer & simplifyzUsing best practice to ensure quality and consistencyzAllowing internal and external benchmarkingzTo obtain standard systems?

2 Processes? polices?Institute for Employment Studies3 What s involved in consolidation(and other structural change)zBringing together dispersed activities into single organisationzAim is to share services for common good zFocuses on transactional and informationalzCan allow business embedded HR to flourish independently& specialist expertise to growCorporate centreBusinesspartnersCentres ofexpertiseSharedservicesPlus ..zNew relationships with stakeholders CEO Employees Line Managers zNew purpose and rolezNew content CSR OD Branding ..Drivers of transformationzCost reductionzImproved service standardszMore business focuszIncreased customer sensitivityzGreater added valuezRepositioning function away from administration towards strategy Institute for Employment Studies4contributionstrategictacticaltim e orientationshortlongstrategist/integrato radministrator/controlleradviser/consult antRepositioning HRA corporate exampleShaping.

3 CreatingimpactFunctionallyeffectiveProce ssefficientHR focus and capabilitytimeTransactiondominatedGenera l drivers of transformationzCost reductionzImproved service standardszMore business focuszIncreased customer sensitivityzGreater added valuezRepositioning function away from administration towards strategy(segmenting & balancing transformational & transactional)Following the lead of other functions Institute for Employment Studies5 What drivesconsolidation, standardisation & automation StrategystructureStrategic positioningImproveservicesCut costsprocessesConsistencyFinancial savingsCredibilityBenchmarkingsystemsCos tCommonalityBetter MIIntegrationFacilitates devolutionSpecific driversthe institute for employment studiesThe prizesSo what are the prizes ?

4 Within the function:zShift towards valued-added workInstitute for Employment Studies6 Activity shift (company example)Key:Strategy,administrative, advice and delivery60%30%10%20%20%60%OriginalHRAfte r sharedservicesAfter selfserviceSo what are the prizes ?Within the function:zShift towards valued added workzImproved, faster processeszLower costszBetter customer feedbackzSeen as a valued contributor zPeople management on the mapSpecific benefitsStrategystructureService qualityHR repositioningBusiness focusHR issues more on agendaDeeper expertiseprocessesService qualityGood practiceBetter benchmarkingCost savingssystemsFaster serviceCost reductionGreater consistencyWhat benefits fromconsolidation, standardisation & automation Institute for Employment Studies7So what are the prizes ?

5 Within the function:zShift towards valued added workzImproved, faster processeszLower costszBetter customer feedbackzSeen as valued adviserzPeople management on the mapFor the organisation as a wholezSuperior performance through peoplePerformance through peoplezHigher productivityzBetter attendancezLower attritionzBetter service deliveryzHigher qualityzReduced costszImproved organisational functioningzAligned culture & organisational values the institute for employment studiesThe challengesInstitute for Employment Studies8 Customers not always happy! Business partners promise the earth because they leave someone else to deliver Business partners need to get out more Is HR up for it, as well asup to it?

6 HR policies good in theory but difficult to implementHR is insufficiently in touch with businessHR unduly constrains lineHR is unresponsive and slowHR quality varies from superb to one wonders how they managed to find their way to work! challenges with service deliveryzProblems with Structures Systems ProcessesWhat problems faced?zSegmentation: boundary management poor communication and learning unclear accountability role ambiguityzService model: over promising, under delivering customer complaints no recognition of customer differences multiple delivery channels service gaps - the Polo problemInstitute for Employment Studies9 The polo problem StrategicOperationalAdministrativeFurthe r problemszTechnology doesn t work as promised self service insufficiently intuitive accusations of dumping by line tail wagging dog over automation of processeszStandardisation cultural/customer differences ignored centralisation by another nameMore challengeszHR resistance zCustomer rejectionzChange management zDistance from employeeszFailure of devolution to lineInstitute for Employment Studies10 Inhibitors to devolutionSource.

7 CIPD research 2007mean scores0 = not at all 1 = a fair amount 2 = a great HR processeslack of role claritylack of mgt encouragement to devolvereluctance to let gopoor employee self-service capabilitypoor manager self-service capabilityLine manager issuesHR issuesTechnology issuesMore challengeszChange management zHR resistancezCustomer rejectionzDistance from employeeszFailure of devolution to linezGetting message accepted of people as assetszBeing able to prove HR/people management contribution to organisational successzLack of focus on key issuesTime v importance (the top 3 activities for HRDs)Source: CIPD research 2007525362671302838145949937496416580 1020304050607080HR administ rationUpdating own HR knowledgeChange managementHelping employeesProviding support to line managersProviding specialist HR inputD e v e lo p i n g HR s t r a t e g y & po li c yI mplementing HR policiesBusiness strategyA c tivity A reaPe rc e ntage (n =775)

8 Most time consuming mo s t impo r t a n tInstitute for Employment Studies11 More challengeszHR resistancezCustomer rejectionzChange management zDistance from employeeszFailure of devolution to linezGetting message accepted of people as assetszBeing able to prove HR/people management contribution to organisational successzLack of focus on key issueszHR capability and career developmentHR capability needs CIPD research 20070 102030405060willingness to innovateintegritynegotiating skillsbusiness knowledgeability to deliver to targetsstrategic thinkingleadership skillscommunication skillsunderstanding HR practicesinfluencing skillsPercentage of respondents (n=767)Most importantBiggest ChallengeDoes HR have the skills?

9 Most frequently listed competencies for successful international HR professionals in CIPD research:Process skills providing information & advice mobilising & engaging balancingTechnical skills compensation training resourcing skills facilitating cultural sensitivity ambiguity tolerance team workingBusiness skills strategic thinking business understandingInstitute for Employment Studies12or these characteristics? (SHRM 4Cs model)Susan Meisinger The Future of HR ManagementIs HR up for it?zWhat about personal attributes? like couragezAre there performance constraints? Confidence to challenge Motivation to improve Flexibility to adapt Determination to make an impact Resilience ..zPerformance = potential interferenceTraditional career structure Personnel AssistantPersonnel OfficerSenior PersonnelOfficerPersonnelManager for Employment Studies13 Worst case future HR career mapCorporate HRShared serviceBusiness partnerCentres of expertisetransfers fromline managementexternal recruitmentexternal recruitmentoutsourcedthe institute for employment studiesHow to meet the challenges and overcome the problems How do you do this?

10 Build a world class approach to HRInstitute for Employment Studies14 Building a world class HR modelAligns &integrates withthe businessProactivelyleads thepeople agendaAchieves desiredresults forthe businessFacilitatespeoplemanagement Gets thebasicsrightSupportspeoplemanagementIM PACTW orld Class HR PracticeCreatevalueAddedvalueValueformon eySustainableinnovationContinuousimprove -mentCustomer focusHow do you do this?Build world class HR by:zGetting the basics right efficient processes and systemszProviding the operational support line managers need (not want)zDeveloping a suite of HR policies & practices that enables good people management/drive successA service-driven modelOrganisational leadership and cultureHR policies and practicesline managementemployee behaviourssuperiorperformanceInstitute for Employment Studies15 How do you do this?


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