What Is HR Transformation All About?
Nowadays many companies discuss HR transformation, and it has quickly become elevated to the status of business buzzword. But what does HR transformation mean, and how can it be put into practice? One useful model envisions the HR transformation process in four “P” stages: Promoter, Policeman, Partner, and Player . In the last 10 years, most HR departments have managed to evolve through the first two phases. No longer is HR merely a promoter of company policy, injecting staff with a shot of vigor and enthusiasm while putting a good word in for the administration. And HR has worked its way through the police stage, a time when it was assigned the unattractive task of monitoring HR policies. HR has indeed emerged to become a partner to its company and a strategic asset to the business. However, the full potential of HR has not yet been recognized: as a player of equal status with other corporate departments, adding value to the business and helping execute corporate strategy.
The Three Layers of HR Transformation
Do not think of HR transformation as a destination. It is a journey on which companies must focus on three different layers of maturity: the fundamentals, the enablers, and the differentiators.
Depending on where you are on your journey to total HR transformation and where you want to head, these three layers will have a varying degree of importance for you, now and in the future.
The first layer is made up of the fundamentals. These represent the essential requirements that need to be fulfilled in order to take HR to the next level. The basis for successful HR work is a sound service delivery model that consistently generates business value while lowering costs and improving process quality. It is about increasing the efficiency of your core HR processes and supporting global compliance, which requires . Having clean, reliable employee and organizational master data. is key to each and every effective program and practice in your HR department.
Some HR processes support the objective of adding value to the business more directly than others. The key enabler is a comprehensive talent management approach that builds and develops a high-performing workforce. It comprises all challenges concerned with bringing the right people into the company and getting them up to speed in minimum time. It is concerned with increasing performance within the organization and developing in-house talent in the most effective way. Another strong enabler is HR analytics: creating transparency on the state of the organization and enabling accurate forecasting. it creates the transparency about your workforce and the efficiency and effectiveness of your HR processes. This means, you enable managers to make decisions on a surround basis.
As yet, HR is perceived as a solid partner for the business, but this vision stops short of seeing what a fully realized HR department can be to a company. The final stage in the HR transformation is for HR to become a player in the company or organization with status equal to that of the other departments. To earn this recognition, HR must be trained, equipped, and poised to make a real difference to the business. It must be both informed of and prepared to act on megatrends. In the future, virtual collaboration will become crucial to the business. HR must be in a position to forge and empower these virtual teams, connecting people efficiently so that they work effectively together and are satisfied with this mode of collaboration. Smart companies will leverage social networks, while workforce members are seeking more flexibility in their lives and working time. HR needs to respond to these trends by exploring the possibilities of developing new and more flexible working patterns. Furthermore, HR departments can make a true difference if they deploy strategic workforce planning and can manage organizational learning.