Clients are asking KPMG firms to help them solve these types of critical questions:
- How can I turn increasing levels of data into meaningful workforce knowledge?
- How can I create consistent measures of organization performance?
- How can I understand which technology upgrades will accomplish my objectives?
- This technology upgrade question is particularly sensitive because we don’t feel we achieved the benefits anticipated from the last upgrade. How to remedy?
- We have poor performance metrics to enable continuous improvement. How do we address?
- We have legacy outsourcing relationships that don’t seem to meet our needs. How do we redefine our service delivery strategy?
- How do we understand the maturity of our services and organization?
- We have unclear roles and reporting relationships and a heavy focus on transactional capabilities in HR. How do we make our HR team more strategic?
The emergence of cloud-based technologies and next-generation applications has resulted in technology as a primary enabler and driving force of large global transformation initiatives. To succeed, Human Resources should take a holistic approach. The goal is to move beyond the old transactional approach to become a more strategic and trusted business partner. The HR function should deliver sustainable competitive advantage to the enterprise through its workforce. This requires HR to define its strategic objectives in close alignment with the business to better demonstrate its enhanced value.
If HR isn’t bringing strategic value to your organization, you’re missing a crucial opportunity to convert the full potential of your people into financial performance and market value.
Sustainable change will mean addressing challenges in globalization, growth and mobility. HR must determine key stakeholders, identify vital opportunities, and outline strategic imperatives. Of course, buy-in from stakeholders is critical. Typically, significant resources have already been invested in existing systems, which could affect IT’s desire (and capacity) to embrace change. We liken it to trying to convince someone with a massive VHS collection to modernize into digital media. Having already expended a lot of time and money, it might take some coaxing to leap into the new technology. Encourage a “big picture” view that demonstrates your common objectives, and validates the benefits of adopting and advocating the new plan.
An effective global service delivery model must specifically spell out what you are trying to accomplish. Governance is essential, particularly since changes made at the global level will also affect regional and local processes. So, get your guiding principles in order from the outset. How quickly HR can prepare for growth can set the stage for transformation. HR must drive to standardize and harmonize data. Analytics become even more important to understand talent on a global level. Doing it well can lead to greater flexibility and scalability; otherwise it can be a painful process.
Many companies see mobility as employing technology to enable the workplace – and the workforce – of the future. HR must plan for alternative working environments across their organizations. Driven by workforce expectations, we see a five-year trend emerging that centers on plans for scalable solutions through the cloud and the Web.
HR must learn to attract and manage talent. New technologies are changing the way work is performed, and HR needs an effective system to measure remote work and reward remote employees. Today we have four generations in the workforce. Virtual work environments are common for younger employees, but older employees and managers struggle a bit with this approach. Managers need better tools and methods to foster collaboration with their remote teams. CIOs and CHROs need to keep their workforce competitive in the future, as industries concerned about workforce adoption head down the remote work path.
The design for the HR organization of tomorrow is certainly underway today. New strategic enterprise opportunities will emerge at the intersection of globalization, growth, and mobility. But HR must first ensure that it’s prepared for its own transformation in order to meet the challenges ahead.
Lisa Massman, Principal, HRIT Advisory Services, KPMG LLP (US)
John Doel, Principal, HRIT Advisory Services, KPMG LLP (US)
Paulette Welsing, Global Lead HR Transformation Center of Excellence
Robin Rasmussen, Principal, HR Shared Services & Outsourcing, KPMG LLP (US)
Check out our Executive Summary Rethinking Human Resources in a Changing World (PDF 318 KB)