Pondering on the lyrics, it made me ask this question. Would I “stay” and deal with the same challenges, only to achieve the same results, or Would I “go” and face new challenges with the opportunity to achieve new results?
HR is it a serious tipping point and needs to make a decision on its future. Although we have seen some progress, HR remains in the balance between transactional and strategic. Will HR settle for status quo or make a commitment to digitally transform?
According to a study released on September 5, 2017 by KPMG “Which lens are you using”, “Global organizations appear equally divided into two camps with different lenses on where the HR function is headed. Half are ‘enlightened’ and boldly engaged in the need for strategically managed HR transformation. The other half are ‘unenlightened’ and faltering amid uncertainty as the digital era redefines the world around them and dramatically rewrites the rules for success.”
What is creating this overall split in perspective? Based on October 2017 research conducted by Altimeter, “The 2017 State of Digital Transformation” state the top three reasons are: (31.4%) have low digital literacy or expertise among employees and managers, (30.9%) view Digital Transformation as a cost center, i.e. short term investment in value creation, and (30.5%) company culture.
What I find interesting, is that the Altimeters #1 rationale, is consistent with most other research. However, where I am finding a significant difference is an organizations interest vs. commitment, which Ken Blanchard clearly outlines as,“There’s a difference between interest and commitment. When you’re interested in something, you do it only when it’s convenient. When you’re committed to something, you accept no excuses; only results.”
If we look at the 2017 Deloitte Global Human Capital Trends report, we can see the interest with the fact that “88 percent of HR leaders believe that building a digital workforce of the future is important. However, only 11 percent of those organizations understand how to do it.“
In short, there is a lot of interest to transform, but due to the lack of digital capabilities, there is low commitment to take the risk.
There are three reasons, HR should Go:
1. Relevance – Our world is changing every second, which is creating new demands on how our businesses operate, provide goods/services, and the workforce needed to be successful. HR can be a significant influencer as it relates to people, culture, and value realization. Yes, I said value realization. HR needs to refocus on metrics that matter by clearly demonstrating how it is driving business objectives, i.e. operational efficiencies, customer satisfaction, business performance, market share, etc.
2. Difference – An organization is known for its brand, products/services, and experience. A key differentiator of success among most organizations is its people. Having the best players on the field is the difference between winning and losing. HR programs are not only critical in acquiring, managing, engaging, and retaining talent, they are essential in creating relevance.
3. Demand – Listening is easier said then done, and for many it is a truly difficult task. However, listening to the world around us gives us insights into what is happening and helps us predict what is to come. HR is a consumer of many voices, i.e. business, workforce, industry, environment, culture, etc. HR has an amazing opportunity to leverage this information to proactively enable and influence the business to create relevance and difference.
How do I get get started? – In my next blog, I will be outlining the SAP HR Digital Transformation Framework. Stay tuned…….