HR Transformation: prizes and challenges - Ipma-Hr …

1 hr transformation : prizes and challenges Peter Reilly Director HR Research and Consultancy the institute for employment studies Agenda z What is hr transformation ? z What prizes does it bring? z What challenges need to be met? z The available solutions hr transformation the institute for employment studies Institute for Employment Studies 1. Dimensions of hr transformation Automation Standardisation Consolidation What's involved in automation z Integrated records (and payroll) systems z Better MI. z Information through intranet z Self service z Stand alone e-systems z Document management & work flow What's involved in standardisation z Re-engineering processes z To exit, transfer & simplify z Using best practice to ensure quality and consistency z Allowing internal and external benchmarking z To obtain standard systems?

2 Processes? polices? Institute for Employment Studies 2. What's involved in consolidation (and other structural change). z Bringing together dispersed activities into single Corporate centre organisation z Aim is to share services for common good z Focuses on transactional and informational z Can allow business embedded Business Centres of Shared HR to flourish independently partners expertise services & specialist expertise to grow Plus . z New relationships with stakeholders CEO. Employees Line Managers z New purpose and role z New content CSR. OD. Branding . Drivers of transformation z Cost reduction z Improved service standards z More business focus z Increased customer sensitivity z Greater added value z Repositioning function away from administration towards strategy Institute for Employment Studies 3.

3 Repositioning HR. strategic strategist/integrator contribution adviser/. consultant administrator/controller tactical short time orientation long A corporate example HR focus and capability Shaping, creating impact Functionally effective Process efficient Transaction dominated time General drivers of transformation z Cost reduction z Improved service standards z More business focus z Increased customer sensitivity z Greater added value z Repositioning function away from administration towards strategy (segmenting & balancing transformational & transactional). Following the lead of other functions Institute for Employment Studies 4. Specific drivers What drives consolidation, standardisation & automation Strategy structure processes systems Strategic Consistency Cost positioning Financial Commonality Improve savings Better MI.

4 Services Credibility Integration Cut costs Benchmarking Facilitates devolution The prizes the institute for employment studies So what are the prizes ? Within the function: z Shift towards valued-added work Institute for Employment Studies 5. Activity shift (company example). Original After shared After self HR services service 10% 20%. 30%. 60%. 20%. 60%. Key: Strategy, administrative, advice and delivery So what are the prizes ? Within the function: z Shift towards valued added work z Improved, faster processes z Lower costs z Better customer feedback z Seen as a valued contributor z People management on the map Specific benefits What benefits from consolidation, standardisation & automation Strategy structure processes systems Service Service Faster quality quality service HR repositioning Good Cost practice reduction Business focus Better Greater benchmarking consistency HR issues more on agenda Cost savings Deeper expertise Institute for Employment Studies 6.

5 So what are the prizes ? Within the function: z Shift towards valued added work z Improved, faster processes z Lower costs z Better customer feedback z Seen as valued adviser z People management on the map For the organisation as a whole z Superior performance through people Performance through people z Higher productivity z Better attendance z Lower attrition z Better service delivery z Higher quality z Reduced costs z Improved organisational functioning z Aligned culture & organisational values The challenges the institute for employment studies Institute for Employment Studies 7. Customers not always happy! HR policies good in theory HR unduly but difficult to implement constrains line Is HR up for it, Business partners as well as need to get out more' up to it?'. HR is insufficiently in touch with business Business partners promise the earth because they leave someone else to deliver'.

6 HR is unresponsive HR quality varies from superb and slow to one wonders how they managed to find their way to work!'. challenges with service delivery z Problems with Structures Systems Processes What problems faced? z Segmentation: boundary management poor communication and learning unclear accountability role ambiguity z Service model: over promising, under delivering customer complaints no recognition of customer differences multiple delivery channels service gaps - the Polo' problem Institute for Employment Studies 8. The polo' problem Strategic Operational Administrative Further problems z Technology doesn't work as promised self service insufficiently intuitive accusations of dumping by line tail wagging dog over automation of processes z Standardisation cultural/customer differences ignored centralisation by another name More challenges z HR resistance z Customer rejection z Change management z Distance from employees z Failure of devolution to line Institute for Employment Studies 9.

7 Inhibitors to devolution priorities disposition Line manager training issues time skills restrictive HR processes lack of role clarity HR issues lack of mgt encouragement to devolve reluctance to let go Technology poor employee self-service capability issues poor manager self-service capability 0 1 mean scores 0 = not at all 1 = a fair amount 2 = a great deal Source: CIPD research 2007. More challenges z Change management z HR resistance z Customer rejection z Distance from employees z Failure of devolution to line z Getting message accepted of people as assets z Being able to prove HR/people management contribution to organisational success z Lack of focus on key issues Time v importance (the top 3 activities for HRDs). Ac tivity Area 58. Business strategy 14. 16. Implementing HR policies 38.

8 64. Developing HR strategy & policy 28. 49. Providing specialist HR input 30. 37. Providing support to line managers 71. 9. Helping employees 26. 49. Change management 36. 9. Updating own HR knowledge 5. 5. HR administration 52. 0 10 20 30 40 50 60 70 80. Perc entage (n=775) most time consuming most important Source: CIPD research 2007. Institute for Employment Studies 10. More challenges z HR resistance z Customer rejection z Change management z Distance from employees z Failure of devolution to line z Getting message accepted of people as assets z Being able to prove HR/people management contribution to organisational success z Lack of focus on key issues z HR capability and career development HR capability needs willingness to innovate integrity negotiating skills business knowledge ability to deliver to targets Most important Biggest Challenge strategic thinking leadership skills communication skills understanding HR practices influencing skills 0 10 20 30 40 50 60 CIPD research 2007.

9 Percentage of respondents (n=767). Does HR have the skills? Most frequently listed competencies for successful international HR professionals in CIPD research: Process skills Political skills providing information facilitating & advice cultural sensitivity mobilising & engaging ambiguity tolerance balancing team working Technical skills Business skills compensation strategic thinking training business understanding resourcing etc. Institute for Employment Studies 11. or these characteristics? (SHRM 4Cs model). Susan Meisinger The Future of HR Management Is HR up for it? z What about personal attributes? like courage z Are there performance constraints? Confidence to challenge Motivation to improve Flexibility to adapt Determination to make an impact Resilience . z Performance = potential interference Traditional career structure Personnel Manager Senior Personnel Officer Graduate recruitment Personnel Officer Personnel Assistant Admin.

10 Recruitment Institute for Employment Studies 12. Worst case future HR career map transfers from Corporate HR. line management Centres of expertise Business partner outsourced external external recruitment Shared service recruitment How to meet the challenges and overcome the problems the institute for employment studies How do you do this? Build a world class approach to HR. Institute for Employment Studies 13. Building a world class HR model World Class HR Practice Aligns & Proactively integrates with leads the Create the business I people agenda Sustainable value M innovation Achieves desired P Facilitates Added results for A people Continuous value improve- the business C management ment T. Value for Gets the Supports Customer money basics people focus right management How do you do this?