HR Going Forward
HR organizations deliver essential services such as recruitment, on-boarding support, compensation and benefits administration, compliance reporting, and others. But going forward HR will be challenged to go beyond the role of support service provider to become an effective strategic resource. The HR organization of the future will be a driver of leadership systems. And it will leverage HR analytics for competitive advantage.
Successful businesses operate on a foundation of an engaged workforce, a culture of accountability and technology leveraged for customer satisfaction. And these all start with effective leadership systems. The successful HR organization going forward will be oriented to all aspects of developing good leadership in the business. Finding people with good leadership potential and training them will not be enough. It will also be necessary to put in place leadership policies and practices, i.e. leadership systems, which reinforce all aspects of effective leadership at all levels of the business.
Strategic HR will play a central role in advising executive leaders to devise and implement key leadership systems:
|· Planning||· Improvement|
|· Performance Management||· Tracking & Reporting|
|· Talent Pool Development||· Organization Design|
HR will be asked to focus on the business – without ignoring service delivery. And a big part of the challenge will involve changing how HR measures its success. Traditional measures of HR effectiveness such as ‘cost per hire’ and ‘training costs as a percentage of payroll’ miss the point. HR should be measured on business results, for example:
- Closing the gap between strategy and execution
- Improving operational effectiveness by skillfully deploying people and executing good organizational design, to increase the Current Value (CV) of the business.
- Enhancing the capability of the company to innovate – with new products and services, and by transforming its business models in response to new opportunities – measured by Future Value (FV )
Using tools like the HRIS or ERP – designed for administrative efficiency and service delivery – is not enough anymore, since they can only answer historical questions, such as “How many people are in this division? What are our payroll costs?” Instead, stronger analytics capabilities are needed for problem solving by diagnosing root causes and for gaining insight by modeling different ‘what-if scenarios’. OrgMetrix works with clients to build full HR analytics capabilities, in particular predictive analytics for testing future scenarios, like “What would happen if we combine these two business units? How might it impact customer service? Could it speed up decision making and reduce time to market?”