1 O Things I HR Transformation is about unravelling the

mysteries of HR Transformation - giving insight to the myriad

of components included in HR strategy and transformation
discussions. Organisations have different expectations of
Human Resources, but HR itself is finding it difficult to adapt
and provide direction. There is good reason for this, given that
HR has remained largely inwardly focussed and showing
marginal increases in its own performance.
How do we help you on your journey of HR success?
HR Transformation initially focused on making HR operations
more efficient and effective through process standardisation and
transactional technology usage. The next generation of HR
Transformation is more tightly linked to corporate strategy and
creating business value through HR services that address a
company's most pressing strategic challenges.
The HR "wake up call" is being driven by
a number of key factors - all of which
are directed towards building or
strengthening the strategic partnership
role.
Overall business is transforming -
HR is an important cog
Pressure to gain the" People
Competitiveness" advantage
Questionable HR service delivery
HR's return on investment
Leadership changes in HR
Lack of perceivea HR value to t he
organisation
Regulatory changes
Global demands
Current research indicates that HR has
three key focus areas, however the level
of success in these areas varies
considerably.
HR Services
o Providing the traditional "Hire-to-retire"
HR services to line management and
employees. The level of "HR maturity"
influences the effectiveness of these
services
Transactional execution
o HR wi ll always be transactional in nature.
Record keeping is generall y good, but
report ing and analysis is generally poor
Partnering
o Line partnering and strategic partnering
has been on the cards for a number of
years. HR tends to rate poorly in this area.
Building the strategic Human
Capital function requires a broader
focus of attention.
HR strategy
Talent management
Leadership development
Change management
Strategic Workforce planning
Merger & acquisition
New market penetration
Regulatory & governance
Global mobility & security
Programme management
An analysis of the strengths of HR
departments shows alignment with the
current focus areas.
People skills
o HR is still regarded as the custodian of
people matters in organisations, and are
regarded as competent in dealing wit h
employee relationship matters
Interviewing and assessment
o HR is skilled in assessing applicants and
conducting applicable assessment s - the
t ypical "psychology" profile of HR is st ill
very prevalent
Functional services
o HR provides reasonable services in t he Hi re-
to-ret ire group of activities
Record keeping
o Generall y good manual recording systems
In order for HR to fulfil its new
mandate, there are a number of areas
that need focus and development.
Business strategy
Data analysis and reporting
Organisational assessment
Organisational design
Cost analysis
Measurement
Cross functional skills
Financial acumen
Vendor management
Technology awareness
Social network impacts
If HR is going to transform then it needs
to address tne critical hurdles it faces.
Capability of line management
Skills within HR departments
Business perception of HR's
\\value"
Attitude of line
HR structures and reporting lines
Business leadership
Business desire for HR strategic
activity
Effective use of technology
Understanding difference
between 'HR Best Practice' and
'HR Maturity'
The new transformed HR model has 4
pillars that support the organisation.
Customers
o Customer services is core to HR, but the
target is changing to include line
cus1omers ana vendors
Process
o Research indicates that< 55% of HR
departments that have redesigned
processes are seeing the benellt s -Why?
Technology
o Technologies greatest use in HR st ill
remains access to policies & procedures.
Less t hat 35% of organisat ions leverage
employee and management self service or
use technology strategically
Structure
o What model best suites the objectives of
the business - 60% of HR departments are
using SS and CO E's, but lower desire to
grow programme specialist and separation
of CHRO and HR controller positions
Traditionally HR has been measured
in ways that are not aligned to
support a strategic focus - you need
measures that shows HR's direct
contribution to the business
objectives.
Non Strategic measures typically
used by HR departments
o HR Cost
o HR/ Staff ratio
o Customer Satisfaction
o HR programme effectiveness
o Line effectiveness in dealing with HR
matters
Cleaning up the HR house will
require focus in the following
areas.
HR functional leadership
Skills in HR
Value of HR to business
Business leadership
Technology
Radical process redesign
Measurement
Accountabil ity

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Actions steps for HR to start
their real transformation

Journey.
Understand your HR maturity level
Assessment of customer needs
Audit of HR data
Assessment of functional activity
Design new strategy for delivery
Evaluate and implement technology
Develop appropriate HR models
Radically redesign processes
/measures
Skills development of HR talent
Outsourcing
Reward strategy for HR
HR is being asked to manage an array of
critical roles to help their organisations
respond to a more complex, and rapidly
changing, business environment.
Talent creator
Counsellor & leadership enhancer
Change designer
Organisation structure & environment
creator
Performance & rewards program
creator
HR service delivery & vendor manager
Regulatory HR generali st/risk manager
Corporate governance consultant
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Stakeholder
value
To deliver value, adapt to
changing organisation
trends, and lead the drive to
people optimisation, HR
must continue to evolve
strategically and build focus
around its customers, its key
roles and how it touches the
business.
Thank you
Excellence in People' reflects what we value as a company. Our focus has always been on employing
the very best people and developing close partnerships with our clients, to provide the best possible
solutions. Put simply, we have excellent people who help our clients achieve excellence in
the management of their people. We have a great knowledge of HR and IT, but more than that, we
are a strong presence within our client's business.
Our strength is the excellence of our people and our focus is on our clients. This focus has seen us
evolve into a global organisation to better support our clients in their respective markets, the world
over.
Rob Scott
Human Capital Services
www.presenceofit.com.au