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A Primer on HR Transformation

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I ran across what may be the nicest summary of HR transformation I’ve seen in quite some time. Deloitte describes the history and future of (global) HR transformation as follows:

The First Generation of global HR Transformation began to take shape in the mid-1990s, gradually evolving from HR strategy presentations to full-blown transformation initiatives and enterprise-wide implementations by the middle of the decade. First Generation HR Transformation focused on changing the existing relationship between employees, managers, and HR. With technology as a key enabler and process re-engineering as a mantra, this First Generation effort sought to help make employees more self-sufficient, whilst asking them to take more responsibility for their own careers. It also sought to help remove HR from the middle of the employee/manager relationship by making managers more responsible for handling their employees’ HR needs.

Over the past ten years, HR Transformation has led to a major restructuring of HR operations and processes — transforming the way HR services are delivered. Yet, there is still much work to do.

First Generation HR Transformation was focused inward: finding ways to manage and deliver existing HR services more efficiently. The Next Generation of HR Transformation will look outside the function to help companies achieve their desired results and growth in an environment where competition is global and talent is scarce.

Next Generation HR Transformation should focus on developing specific services that are directly linked to strategic challenges such as increasing revenue through new market entry or mergers and acquisitions. ((Deloitte Consulting. 2006. “Global HR Transformation.” Retrived from www.deloitte.com on December 21, 2006.))

When I first started writing this site, I wanted to focus on technology and how to best utilize it from an HR perspective. As the last 2 years have gone by, more and more of the content of this site has become focused on strategies such as talent, branding and workforce planning. Although technology still has a major role to play, Deloitte’s insight that the world of HR is increasingly outwardly focused and not inwardly focused has a major influence on our technology utilization. I’d suggest that we still don’t really know how to make technology truly useful to us in the external market.

You’ll argue with me that we have sophisticated applicant tracking systems and incredible employer branding websites. My opinion is that this is barely scratching the surface of where we need to be over the next decade to really make the transition from internal process efficiencies to truly being able to optimize the workforce. We know that the tasks that lay ahead of us include things like workforce planning, talent management, and branding. We also know that to solidify our positions at the executive table we must integrate ourselves with the business, getting more comfortable with topics such as mergers, change management, and operational efficiencies.

I’d encourage you to read this paper (just search their website). It’s a great look into our past, and although I’m not sure it presents any new ideas for the future, it just might make you do some thinking about where you are in your HR transformation lifecycle.

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5 responses to “A Primer on HR Transformation”

  1. Reading the SystematicHR entry on HR Transformation that cited last year’s Deloitte study on Global HR Transformation made us think about how self-service has revolutionized HR. Over the last decade, HR has made great strides. Starting with administrative systems of record, HR drove efficiencies using

  2. Reading the SystematicHR entry on HR Transformation that cited last year’s Deloitte study on Global HR Transformation made us think about how self-service has revolutionized HR. Over the last decade, HR has made great strides. Starting with administrative systems of record, HR drove efficiencies using

  3. The First Generation of global HR Transformation began to take shape in the mid-1990s, gradually evolving from HR strategy presentations to full-blown transformation initiatives and enterprise-wide implementations by the middle of the … Read more

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  5. […] the SystematicHR entry on HR Transformation that cited last year’s Deloitte study on Global HR Transformation made us think about how […]