The document outlines a new business model for HR that focuses on becoming a strategic business partner rather than just a transactional support function. The summary is:
[1] HR needs to climb the value chain and become a true business that understands customers' needs, delivers solutions through consulting, innovates continuously, and measures the right metrics.
[2] The new model involves segmenting customers, designing tailored solutions, and optimizing delivery through partnerships and new technologies like mobile and cloud.
[3] For HR to be perceived as a true strategic partner, it must balance strategic and transactional work, embrace changes, and focus on business imperatives like productivity, innovation and talent.
2. About Me
Jim Lefever
Director, HR & Change Management
at HR2BE
http://au.linkedin.com/in/jimlefever/
2 The Rough Guide to… A New Business Model for HR
4. The Economic Environment
• Policy actions have lowered acute crisis risks in the Euro area and the US.
• Europe’s return to recovery, after protracted contraction, is delayed.
• Macro uncertainty is impacting business plans and stability.
• US “Fiscal cliff” avoided but the lemmings are still gathered at the edge.
• Everything being equal, global growth could be stronger than projected.
• Downside risks remain significant.
• In Asia-Pacific;
• China will see a cyclical bounce, though structurally, growth is slowing.
• GDP growth in India forecast at 5.5% in the current financial year. The current account deficit is
expected to be wider in third quarter on the back of slowdown in net exports of services and larger
outflows of investment income payments.
• Australian resource investment boom is likely to peak in 2013, but exports are expected to recover and
housing investment is expected to stop declining.
• Japan’s economy should improve as the global economy improves. However, in the near term, political
tensions with China will impact GDP .
• South Korea's domestic risks like declining home prices are fading and the economy is expected to grow
3.4% next year.
Sources:
1. Societé Generale; Here's What The World Will Look Like In 2013 And Beyond. Link
2. IMF; World Economic Outlook Update. Link
4 The Rough Guide to… A New Business Model for HR
5. Core Implications for Business
Increased investor pressure for growth and performance means that there will need
to be a greater drive on;
• Improving Productivity
• Identification and implementation of New Revenue streams
• Optimisation of Costs
• Enhancing the Customer experience
• Harnessing Innovation
• Utilisation of current & emerging Technologies
• Retention of necessary IP and Talent
5 The Rough Guide to… A New Business Model for HR
6. 2013 Key Focal Areas for HR
Productivity
Transformation Performance
Of the HR Team
Talent
Advanced
Predictive
Analytics
Technology –
Cloud, Apps,
Innovation & Tablets
Creativity
Source:
1. The Next Step “HR Business Outlook FY13” February 2013, Australia
6 The Rough Guide to… A New Business Model for HR
7. But how is HR often perceived?
• HR doesn’t understand the Business imperatives
• Is not a commercial partner
• Not engaging at the right levels in the right way
• Process police, too bureaucratic
• Low value add
• Focus only on the transactional
• Not forward looking
• Doesn’t ask the right questions
• Reactive, not proactive
7 The Rough Guide to… A New Business Model for HR
9. “It’s time to climb the Value Chain.
HR must become a Business.
A business that flows, with a structure complementing the business flow.
That understands its customers and their needs, capable of balancing the
strategic with the transactional. Recognising and using partners, both old
and new, where appropriate, and embracing new technologies. Every
business needs a brand, and a mission, and allows for customer queries,
adopting a consulting focus to deliver solutions; continuously innovating,
communicating and measuring the right things.”
9 The Rough Guide to… A New Business Model for HR
10. It’s time to climb the Value Chain
HR as a
Business
Refine Relationship
& Delivery Channels
Value Refine Services
& Solutions
Segment & Target
Customers
Adoption of
New Model
“Fire
Fighting”
Time
10 The Rough Guide to… A New Business Model for HR
11. HR must become a Business
Build Define & Design Deploy & Run
Partner Customer Customer
Network Segmentation Relationship
Core
Capability
Service Solution Delivery Customer
Portfolio Design Channel
Cost Net
Of Delivery
Investment & Return Benefit
11 The Rough Guide to… A New Business Model for HR
12. A Business that Flows
1.
ID & Segment
2.
Customers
Define &
Refine Needs
6. 3.
Continuously Design
improve Solutions to
portfolio Needs
Customer
5.
4.
Manage
Optimised
Customer
Delivery
Relationship
12 The Rough Guide to… A New Business Model for HR
13. With a Structure complementing the
Business Flow
Build Define Design Deploy Run
HR Portfolio HR Business Partners
Customer Needs
Analysis
Workforce Planning /
Strategic Resourcing
HR Capabilities / Lines of Business
Comp & Bens, L&D, Recruitment
Solution Delivery & Change Management
Cross Functional Projects, Resource Utilisation, Metrics & Reporting, Employee Engagement
Employee Relations
HR Operations, IR
HR Help Desk
First Contact, Case Management
13 The Rough Guide to… A New Business Model for HR
14. That understands its Customers and their
Needs, Note: All figures indicative only
Learn
14 The Rough Guide to… A New Business Model for HR
15. Capable of balancing the Strategic with
the Transactional
New
Customer Escalation
Business
WFM
GL&D Recruit Specialist
One Advice
WH&S Point of
Contact1 Business Employees
HR
C&B Partner HR Help Desk
ER
/IR
Expat
Mgt
Intranet & HRIS
SPOC will change dependent
upon Solution being delivered
to the Customer
Solution Delivery Process & Compliance
Note:
1. Depending on solution being delivered, either HR Business Partner or HR Project Manager
15 The Rough Guide to… A New Business Model for HR
16. Recognising and using Partners, both old
and new, where appropriate,
Example Outsourcing Areas;
• HR Strategy Development
• HR Projects
• Succession Planning
• Talent Management
• Organisational Design
• Change Management
• HR Help Desk
• First Contact
• Case Management
• Recruitment
• RPO
• Inpat/Expat Management
• Learning & Development
• Specialist Advice
• Creation of specialist reward plans e.g. Sales
• Industrial Relations negotiations
16 The Rough Guide to… A New Business Model for HR
17. And embracing new Technologies.
• Greater utilisation of Tablets & Smartphones;
• Mobile Optimised (HTML5) websites
• Targeted microsites for “campaigns”
• HR Apps (e.g. ADP Mobile Solutions, BizX Mobile, Kronos Workforce Mobile)
• Moving deeper into the Cloud;
• CRM & Sales Performance Management (e.g. Salesforce)
• HRIS (e.g. Oracle, SAP)
• Performance Management (e.g. SuccessFactors, Kapta)
• Learning Management Systems (e.g. Topyx, Moodle)
• Recruitment (e.g. Taleo, PageUp)
• Digging in with Big Data and Talent Analytics
• Is the employment brand competitive?
• Are the right candidates being attracted?
• Which recruiting sources are delivering the best candidates?
• Are any of the teams likely to put the business at risk?
• Is the right talent on board to take the company where it needs to go?
17 The Rough Guide to… A New Business Model for HR
18. Every Business needs a Brand
We act as the key supplier of HR Services to the
business, providing structured Solutions targeted at
And a Mission business needs, supported by a strong Services
Portfolio and commercially focussed Core Capability.
18 The Rough Guide to… A New Business Model for HR
19. And allows for Customer queries
Business Partners – Strategic Influencers
T4
Employee Relations – Escalation/Investigation T3
HR Help Desk – Case Management T2
HR Help Desk – First Contact
T1
Web / Intranet – Self Service
T0
Manager & Employee Self Service
19 The Rough Guide to… A New Business Model for HR
20. Adopting a Consulting Focus to deliver
Solutions;
Review
Implementation
Solution Sign Off
Solution Development
Needs Qualification
Customer Needs
Continuous Improvement
20 The Rough Guide to… A New Business Model for HR
21. Continuously Innovating,
For Example:
• HR2BE to Leaders - the Art of
Partnership
H R
• Leaders Support Site
• HR Calendar for Leaders with Outlook
upload capability
• HR Podcasts
• Voice of Customer Survey
• Lean Six Sigma of Key Processes
21 The Rough Guide to… A New Business Model for HR
22. Communicating,
• Face to Face
• Weekly Blog
• Twitter
• Branded Messaging
• Business Briefings
• Case Studies
• White Papers
• Quarterly “Town Halls”
• Leadership Meetings
• Business Unit Meetings
22 The Rough Guide to… A New Business Model for HR
23. And Measuring the Right Things!
• Return On People Employed
• Value Added per Person
• Average Cost per Person
• Cost of Turn-Over
• Leave Liability
23 The Rough Guide to… A New Business Model for HR
24. About Us: Core Solutions:
• HR2BE work with small and medium • HR Audit
businesses to put in place really simple, • HR On Demand
really effective and pragmatic Human • HR Foundations
Resource strategies and actions that will
save you money, minimise your risk and • HR Projects
increase productivity. • HR Strategy
• Our fully qualified and experienced team Contact us to find out more:
can be engaged to deliver a simple Jim.Lefever@hr2be.com.au
policy or single project, such as a new http://www.hr2be.com.au
performance management system,
through to acting as your outsourced HR
partner on a retained basis. We can help
you by drafting employment contracts,
Human Resource processes, HR training
or to put in place a full Human Resource
program of works.
24 The Rough Guide to… A New Business Model for HR