4 – Use the wisdom of crowds. When Olympique Lyon think about signing a player, a broad group debate the transfer.  In England it’s usually the manager. The more collaborative system has proved to be successful and tends to avoid the typical mistakes in the transfer market. How can you benefit from the wisdom of crowds in recruitment, and implement a process where different views are taken into account?

1.  Two superb videos charting social change next generation social media -  from Andy Headworth, Sirona Says Blog

Social Media is important in transforming HR and people management. This article has two superb videos on next Generation Media, from an excellent blog. Andy always has a finger on the pulse of new developments in social media and recruitment.

2.  Interview with David Ulrich – from Sharlyn Lauby, HR Bartender

It is great to see Professor David Ulrich using social media with an online Q&A with Sharlyn at the HR Bartender blog. David is promoting his new book written with his wife, Wendy, called the “Why of Work”.

3. If you only had one source to find candidates – from Boolean Black Belt

The question is “if you were limited to only 1 method/specific source for identifying candidates to contact, engage and recruit, which would you choose, and why? “ Follow the link to find out the responses which say a lot about how social media is transforming People Management.

4.  Go Lean: Minimize customizations and reduce overall TCO in Oracle ERP implementation (Part 1) – from Infosys Oracle Blog

IT project implementations do not have a good record of delivering on time and to budget. Here are some good tips about minimising ERP customisations and reducing Total Cost of Ownership (TCO). This team are Oracle experts, but the lessons apply to other applications.  Also of interest, check out our Top 5 Reasons HR Projects Fail.

5. HRO Market update – from Linda Merritt, HRO Insights – Nelson Hall

6.  New SaaS/HRO service from Caliber Point – from Information Week

A new SaaS/HRO Service has been launched by the techies at Caliber Point. Rupublic is a multi-tenanted HR Platform, available as Software as a Service (SaaS), based on the latest Oracle HR Software, with a HR Outsourcing service. For some organisations this could be a dream solution – no technology maintenance overheads or systems administrators plus variable costing. Contact us if you want a more detailed view of the pros and cons of this new service.

7.   Top 50 HR Blogs to watch in 2010 – from Evan Carmichael
For those who have read the HR Transformer Blog and still want to read more interesting articles on HR and Talent, we add two links to recent Top HR Bloggers lists, put together by Fistful of Talent and Evan Carmichael – some good reads here including links to our favourite bloggers. Spot any HR Transformers?

8.  Managing Tomorrow Today – from Mary Ann Downey at i4cp

9.  10 career management tips in the age of job fear – from Lance Haun, Rehaul
Here are 10 Career Management Tips from Lance’s Rehaul blog, it’s always worth reflecting on where we are heading in any economic environment. This includes the intriguing advice "Don’t be a lurker or a slug"

10.  One FTE
And finally – we have to end on a funny one which brightened up our day, thanks to Laurie @PunkRockHR for this tip on Twitter. 1.00 FTE - a very dry look at corporate life, check out their Top 10.

April has been a bumper month for a good selection of HR Transformation related articles, from using 6 Sigma in recruitment, optimising your HR Shared Services, to how the iPad can help HR.
Here is a a leading question, 'Are Performance Management appraisals the Great Evil?'  Election fever is gripping the UK and the main political parties are locking horns in a final show down.  The last three articles here deal with UK Government policies including a comparison of the main parties manifestos on skills and training.

1.  6 Sigma Recruiting – from Jason Buss, The Talent Buzz

6-Sigma can work in HR when used in the right context, with the right skills. It works really well with higher volume for repeatable processes like recruitment. In the right hands, the results are dramatic and can pay for your Black Belt many times over.  This article also includes a useful slide deck.

2.  HR Shared Services Optimisation: Attaining the full potential of HR Shared Services – from Outsourcing World

This is a good post about how to get the most out of HR Shared Services. You have gone through the blood, sweat and tears of getting the model working, so what do you do next? Here are 10 excellent ideas and suggested initiatives. Find out more about “leaner, not meaner HR” and “HR orphans”.

3.  5 ways to torpedo your next HR sale – from Mark Stelzner, Inflexion Advisors
We often facilitate vendor evaluations for HR Services and we've seen lots of pitches over the years ranging from the incredible to the incredulous, to the downright dreadful. This is a candid post which outlines the ways HR vendors can “fail spectacularly”.   Do you recognise any of these “torpedos” ? We do too.

4.  Workday and the unspoken benefits of SaaS – from Phil Wainewright, ZDNet
This is a good article about Software as a Service (SaaS).

“Our estimate is Workday is at least 25%, perhaps 50% cheaper than on-premise competitors Oracle or SAP, mainly due to the simpler implementation and process configuration of the Workday solution.” according to Aviva.

Cost is one of many issues when considering future HR Tech options, but the above statement is a powerful claim.  What does your IT Director think about SaaS ?

5.  How the iPad Can Change HR – from Jason Corsello, KI OnDemand
Is an iPad a big iPod or a laptop with a big screen? I am not sure because I am still waiting for my evaluation copy. (subtle hint to Apple)

Large proportions of the workforce in retail & manufacturing industries have limited access to PCs.  In the design of HR Operating models a big challenge is how to get these employees to access HR service channels, including self-service HR applications and tools to manage vacancies, book courses and update personal info. 

We need to use all the ‘pull factors’ we can to get employees to use HR services and providing a few iPads could be worth considering for certain groups of.  Jason outlines examples from streamlining mundane and repetitive forms, interactive training, performance management and perhaps the area with most potential ‘mobilising HR’.

6.  Performance Evaluations: "The Great Evil"? – from Mike Haberman, HR Observations Blog
Is Performance Management The Great Evil? Systems Thinkers think so and it would seem that many employees think so too. Does the effort pay off and should HR focus their efforts on other initiatives to improve employee performance?

"This corporate sham is one of the most insidious, most damaging, and yet most ubiquitous of corporate activities. Everybody does it, and almost everyone who's evaluated hates it. It's a pretentious, bogus practice that produces absolutely nothing that any thinking executive should call a corporate plus." Quoted in the article from authors Samual A. Culbert and Lawerence Rout.

Strong words indeed, but a thought provoking article and interesting discussion which represents different views on the subject.

7.  If eLearning is still not seen as effective – how will social learning take off?- from Martin Couzins, XpertHR
eLearning has proven to be a cost-effective way to deliver training in  certain areas and the potential for Social Learning is great given the tools, connectivity and knowledge we now have at our fingertips.

However a recent survey by CIPD, on UK Training methods, found that eLearning was floundering at the bottom of the pile on 12% (it was 7% in 2009).  Martin asks a really good question, if eLearning is still not seen as effective – how will social learning take off?
Another question for us is :- if eLearning is a cost-effective way to deliver training, why isn't it used more by organisations?

8.  Election 2010 Briefing – skills and training – from CIPD
The UK election is on May 6th, but when choosing which party to vote for, how important are their policies on Skills and Training?

To grow the economy, enabling the workforce with the right skills and training is absolutely key.   This is a useful three page summary of the main parties manifestos on skills and training. It includes apprenticeships, youth unemployment and internships.

9.  Don’t bank on efficiency savings – from Flip Chart Fairy Tales
The Conservatives say they can get £12 billion more efficiency savings out of the UK public sector than the government has claimed.    “Back-office efficiencies” are proposed by all politicians to reduce the deficit to a more manageable level.  Rick points out the problem with efficiency savings is that they are "probably unachievable".  Developing a realistic business case is difficult work but Rick suggsts the politicians need a reality check.  For more on HR efficiencies in the public sector, see our article about Government Benchmarks – a Government Health Warning.

10.  HR Transformation in Local Government - from Nicola Grimshaw, director at Digby Morgan writing in Changeboard
This is a good article about HR Transformation trends in UK Local Government.  It picks up on trends in collaborative working, headcount freezes and outsourcing.  Nicola reckons that 75% of all local authorities are in the process of adopting an Ulrich style HR Operating Model.

We hope you enjoyed our latest and greatest HR Transformation Articles for April.

Many thanks for the feedback for our Top 10 HR Transformation Articles from March, as always we would welcome any suggested articles, or follow us on Twitter @AndySpence.

We are officially in Spring and in this part of the Northern Hemisphere we have heard the sound of bleating lambs and seen the yellow blaze of cheery daffodils.  It is also a traditional time to blow out the cobwebs, air the mattress and perhaps get round to doing an organisational spring-clean.

Over time every department picks up activities that were meant to be ‘temporary’, done as a ‘workaround’ or done as part of an agreement between people who left years ago. These tasks still get done but we overlook the original purpose and value to the organisation. This stops us from doing tasks that are more productive or useful.

An exercise we find useful is a Stop, Start & Continue review.

- Simply list all the activities you do in a particular area, department or role.

- Decide which activities you will now STOP as they are no longer useful or add little value

- Determine which activities you just have to CONTINUE, as they keep the show on the road

- And then having created some spare capacity, ADD those activities that have been on the To Do list for much too long that you plan to START.

We have found this spring clean useful at an individual level, for a role e.g. HR Business Partner or for a function, e.g. Human Resources. In the context of HR Transformation, we often use this technique as a preliminary step before allocating HR activities to a part of the new organisation structure or in designing new roles. This exercise works well as a facilitated session with small groups. It sounds obvious but it is important to eliminate redundant activities before designing a new organisation.

Download our Stop, Start, Continue Worksheet below:

Here are some examples of Stop, Start, Continue activities that have come out of similar sessions with HR :-

Stop
 

Doing line managers work with employee performance issues

Organising the Christmas Party

Creating manual reports every month without automating

Renewing contracts without assessing the market

Manually entering data into a system because of that temporary system workaround from the upgrade in 2004

Continue

Delivering excellent employment advice

To work with business leaders to plan future scenarios

To coach teams on improving performance

Start

Investigate how social media tools can reduce the cost of recruitment

Determine and measure HR cost drivers

Find out what Managers really think about HR service

Develop a HR Monthly Dashboard

Reviewing contracts with HR suppliers

Let us know, what will you Stop, Start and Continue in 2010?

Spring is in the air and the forces of nature are unstoppable, perhaps inspired, some of our favourite bloggers, analysts and writers are in great form.  With talk of revolutions in HR, some systems thinking, the economics of Software as a Service (SaaS) and the use of artificial intelligence in HR.  In March there was also some big news in the HR Outsourcing industry, with Northgate Arinso acquiring Convergys HRO business. It’s always useful to have a peek over our shoulder at what the Finance community are up to. And while we are thinking of numbers (sort of), we get an economists ‘dismal’ view of management.

1 – The Evolution Debate and HR, from Andy Gebavi – Infusion Nation

Any transformation of an organization takes time, but which is better, a revolution in HR practices or a more evolutionary approach? It depends on the context, but Andy outlines the pros and cons of each approach. Our take is that systems and processes can be changed relatively quickly, but genuine transformation involves changing behaviours which generally evolves in step-changes over time.

2 – Some Days are Better than Others, from Glyn Lumley – The HR Maverick

Why are some days better than others? Glyn observes that when things go wrong “Most of the blame seems to be laid at the door of individual employees”.  But organisations are a complex interaction between people, processes, technology and the environment. Could it be something in the system?

3 – CFO = Value Integrator…CHCO = ?,  from J.Keith Dunbar – The DNA of Human Capital

Ulrich and colleagues have often explained that the change imperative in HR is also happening to different degrees in Finance and other functions.  Keith looks over the fence at the finance community with reference to an IBM Global Chief Financial Officer CFO study. The report refers to the CFO as a Value Integrator, so what does this make our Chief Human Capital Officer CHCO (not a title we like) or HR Director?

4 – Building the Perfect HR Team, from Trish McFarlane – HR Ringleader

Do you need a HR background to be in HR? We had a similar debate last year, with Do You Need a HR Background To Be a Successful HR Director. Trish, who during the day works as a HR Business Partner, asks the question, but goes further.  If you were a ‘fantasy HR Manager’, who would you have in your team? A view on HR skills that will be in demand in the future.

5 – The Management Con, from Chris Dillow – Stumbling and Mumbling

What are we doing highlighting articles from the ‘dismal science’ on the HR Transformer Blog. Well, everyone is interested in economics now aren’t they? Stumbling and Mumbling is a good read and Chris Dillow is a financial writer with attitude, who asks the question, What do Bosses Do? A good question, we may not agree with his answer, but always enjoy some NHS number crunching which he uses to illustrate his view.

6 – Top Reasons for ERP Project Delays –from ERPKO

Unclear critical paths, indecisive decision making and unrealistic expectations – sound familiar?   Most HR Transformation programmes involve getting the most out of HR Technology, including ERP systems such as Oracle or SAP. Delays in the roll-out of new systems are a big problem for HR. Loss of credibility, budget over-run, service delivery issues – the list goes on.  By now, we have seen them all, but do we know what causes them and how to prevent them happening? Sufficient planning, right skills at the right time and a robust governance model all help in our experience. (Thanks to @DougLubin and @rfsilva123 on Twitter for this article.)

7 – How SaaS makes a good free option, from Dennis Howlett, AccMan

Fed up with ERP delays? It might be worth reading more about SaaS. More and more  HR organizations are buying Software as a Service solutions such as SuccessFactors and Workday. Dennis considers the economic model and psychological appeal.  You need to understand the different commercial models as well as the fit with your business requirements. Some conversational topics to bring up with the IT Director when you meet her in the lift!  This article was spotted in our HR-Transformers-Techies Twitter Group.

8 – Employee self-service – Can HR keep up with the pace of self-service technology?, from David Woods at HR Magazine.      

All the evidence points to self-service saving time and money yet take-up remains low and the technology is becoming ever more advanced. David Woods looks at why HR is dragging its feet. There is also evidence that self-service does not always save time and money but what caught our eye, was that Self-service is moving into artificial intelligence. Early adopter Aviva took the decision to launch an automated Ask HR response service for its 23,500 employees back in 2006.  Aviva employees type in a question and with the help of the language search engine, suitable answers are brought up instantly from the web-based knowledge base. Since installing Ask HR, 69% of all HR enquiries are now handled through the system, reducing telephone calls and allowing HR staff to focus on more complex queries.

9 – Northgate Arinso Buys its way to top spot in enterprise HRO and it only cost them 100m, from Horses for Sources

This was big news for the industry in March. By acquiring Convergys HRO business, Northgate Arinso have acquired US HR Service Centre Capability and ready made clients for its HRIS team. The news shakes up the HR Outsourcing industry and creates a Global Leader in an expanding industry with Headquarters in the UK. This was also covered on the day by the HR Transformer Blog – in HR Outsourcing – The Challenge of Picking Winners.   On the subject of industry news, you might already be familiar with the Horses for Sources blog, this has now spawned a new analyst firm, Horses for Sources. We are looking forward to reading the same quality of thinking on outsourcing trends in HR.

10 – Does HR Outsourcing Really Work? From Deloitte

Before we get too excited about HR Outsourcing, does HRO really work? Our friends at Deloitte say HR Outsourcing works when you do it right. The same answer would also apply if you replaced ‘HRO’ with any complex change programme such as a new IT system or move to HR Shared Services. However HRO has had some mixed results for a variety of reasons. The good news is that in 2010 we have over 10 years of lessons learned, case studies and battle scars to learn from….worth reading if you are considering outsourcing HR functions.
We hope you enjoyed our HR Transformation Articles for March.
 
Please suggest articles and HR Transformers worth following on Twitter @AndySpence.
 
And finally, Happy Easter!

So you are no longer a HR Twitter Virgin, you have got yourself a Twitter username, added your appealing bio and uploaded your best photo. You may also have found your favourite celebrity tweeter, or your favourite magazines on Twitter.

Now it’s time to really dig a bit deeper into your particular ‘thing’. At Glass Bead Consulting , our particular ‘thing’ is HR Transformation , improving people management in organisations by applying various techniques and tools in technology, skills and solutions. This includes a broad group of people including HR professionals, writers, academics, consultants, vendors, technologists and various others who are interested in improving people management.

We have created different lists of ‘HR Transformers’ using a feature called Twitter Lists, primarily so we can read useful and relevant twitter streams. Many of these people have their own blogs and publications and we thought it might be useful to share these with you, so you can benefit from their views, resources and links. The lists are a starting point and new people are joining Twitter all the time – so please suggest others to follow and we will update.

HR Transformers on Twitter

1. HR Transformers-Bloggers Bloggers with a passion for HR transformation

2. HR Transformers-Analysts Industry analysts who have a focus on HR Technology, Human Capital Management or HR Outsourcing

3. HR Transformers-Writers HR Journalists or writers with an interest for HR Transformation

4. HR Transformers Techies HR Technology experts or suppliers

5. HR Transformers-Consultants HR consultants with a focus on HR Transformation

6. HR Transformers HR Outsourcing HR and BPO outsourcing vendors and commentators

7. HR Transformers Change Experts in managing change

8. HR Transformers OD Experts in Organisational Design

9. HR Publications HR Magazines and journals

10. Leadership Experts in leadership

11. Recruiters Those involved in recruitment with an interest in social media

We have also consolidated all of these lists to our own Listorious HR Transformers List which is a useful Twitter resource.

Please comment below on any other HR Transformers you recommend to follow on Twitter and we will add to the lists. Self-promotion is actively encouraged, especially for the shy and retiring Brits.

Apparently, Sarah Jessica Parker is a Twitter Virgin. But, are you a HR Twitter Virgin?

There is a lot of hype about Twitter, a social networking and micro-blogging service that enables users to send and read messages or Tweets. Tweets are text-based posts of up to 140 characters displayed on the authors profile page and delivered to the author's subscribers who are known as followers.

We know HR do use social media , see our article and the downloadable report on HR Social Networks UK Trends. HR needs to be all over social media trends to understand how its being used and the transformational impact on our organisations. See for example What a Social Media Policy Looks Like and Social Networking What HR Needs to Know

Many people who are interested in people management and HR use Twitter, however, our feeling is that only a tiny proportion of HR Professionals, Consultants and HRO Vendors that we know, for example on LinkedIn are getting involved. We thought we would try and move things along a bit by explaining why we like Twitter and a few tips on getting started.

We like Twitter because it provides a constant live stream of information including links to articles, blogs, resources and opinions from around the World. Subjects we are interested in such as leadership, HR, talent management, performance management, employee engagement, technology and outsourcing are well represented now on Twitter. Its a bit like having your own 24-7 live, personalised newsfeed. And its free.

In HR for example, some of our favourite twitter feeds include @HRMagazine , @CIPD , @HRBartender (one of our favourite HR Bloggers) or @MartinCouzins (from XpertHR).

We have noticed how ideas that often start as a short 'Tweet', get shaped from feedback and responses, develop into articles and some might even convert into actions in the real world. That is powerful.

It is reassuring in a way, that Twitter behaviour reflects the real-world. Watch out for the brand promoters, the witty, the controversial, the curious and the helpful. See for example The Six Twitter Types . Ignore the bossy Twitter evangelists who shout 'I tweet therefore I am – if you don't have followers you are in the dark ages'. This is just not true. It is a bit like saying you must read a newspaper every day. If you are interested in reading articles on the web or have lots of things to say and are happy to go public then great, if not don't. It's your choice.

Here is our Guide for HR Twitter Virgins with some useful resources to get you started.

1. Get a Twitter account, choose your username and upload your picture from LinkedIn . Add your bio and include words with which you want to be found with. There is no need to reveal who you work if you don't want to. Many people have more than one Twitter account for 'work' and 'personal'.

2. Search for topics you are interested in with keywords, e.g. HR, OD, Change, Leadership, Sarah Jessica Parker and you will see people who are into the same things as you. Follow them and you will see their tweets on your Tweet Stream.

3. The Twitter web-site is fine, but we use HootSuite which is free and allows you to view subject streams or group your followers. It also allows you to shorten web-links which is useful as you only have 140 characters.

4. There is an etiquette and terminology on Twitter, see for example, How to Tweet Politely but you will pick this up soon enough.

5. Finally, follow me @AndySpence and say hello.

If you need any more help to get started, here is the Mashable guide to using Twitter and Twitter Tutorials on You Tube

When you have your Twitter username up and running, why not join the London HR tweet-up and meet other people, in person, discussing topical issues in HR? If interested, register here Connecting HR: the London HR tweet-up.

When you get started, check out our article HR Transformers on Twitter with lots of lists of interesting people to follow.

Whether you are a first-timer on Twitter, or more experienced, please share your thoughts and tips by commenting below.

General Motors have appointed Mary Barra as new Head of Human Resources (see article in ‘Workforce’ – General Motors Shakes Up HR Leadership)

Mary does not have a HR background, however has been a top executive with an engineering background. This has raised the question,

“Do you think someone with a ‘non-HR’ background can make a successful HR Director?”

I posed this question to an Institute of Directors discussion on LinkedIn (UK-based members-only group) and within 24 hours had over 20 comments, which brought out a range of strongly-held views on people management and Human Resources.

Some themes, and my commentary from the discussion :-

Can someone with a ‘non-HR’ background be HR Director? Absolutely, they could bring in real experience of the workplace, fresh innovative strategic thinking, strong stakeholder relationships (particularly for internal candidates) and bring in the real thinkers from outside HR.

What about specific HR knowledge on policies, benefits/reward, industrial/employee relations, employment law?
“It’s a positive sign they want to make deep changes in HR and don’t want to draw from the HR community” from the Workforce article.
Naturally this specialist HR knowledge is needed, but it doesn’t all need to be with the HR Director, or in some cases it doesn’t need to be within the organisation. Larger organisations can afford to employ specialist direct reports, and all organisations can go outside the organisation for specialist HR services. The HR Director is still ‘accountable’ for decisions made on employment law, but that doesn’t mean they need to know the latest directives in minute detail.

The context is key. The range of competencies and experience required for a particular HR Director role is varied and will depend on the circumstances. From major transformation to taking over a ’steady ship’, the skills needed to ‘transform’ an organisation are very different to those needed to ‘manage’ an organisation. (see article HR Transformation Highlights Skills Gaps in HR.)

Who is responsible for ‘People Management’ anyway? Well everyone actually – from the CEOs to managers and employees. HR does have a key role, but it is not their sole responsibility. People solutions come not just from the HR Director, but from a collective team of specialists.

Do organisations need a HR function, if most services can be outsourced? There is a market for HR outsourcing (see article on Top 5 Benefits of HR Outsourcing) which vary in maturity from Payroll and Benefits Administration to end-to-end HR services (for large global players like BP, Unilever etc). If someone else can deliver a particular function ‘better and cheaper’ then why not outsource? My recommendation is not to outsource strategic functions which should be delivered by those ‘close to the heart’ of the organisation. Or better than outsource, why not eliminate unnecessary HR administration or utilise ’self-service’ software applications where appropriate.

Why are we not having this discussion about Finance and IT, what makes HR different? A great question from @bncarvin on Twitter, and also from the LinkedIn debate. My view is that we are having this debate about HR, simply because in many areas HR is not delivering on ‘talent and people issues’ attracting, retaining and developing employees. In some cases, HR is not responding to the strategic agenda because it is bogged down in important operational work, mergers, restructures etc. In other cases, it is because the transformation skill-set is missing. Many of the Chief Executives current issues are ‘People issues’, for example improving performance of employees, developing the talent pool, fostering innovation. If these are not delivered by HR, then the CEO will look for radical solutions such as bringing in talent from outside HR.

My hope is that HR will develop the transformational skills required to allocate more resources to strategic issues, utilise appropriate HR service providers and benefit from the renaissance in HR software solutions (see article 5 Future Trends in HR operating models). With mounting pressure to deliver, HR has to transform or bringing in HR Directors from ‘outside of HR’ will be more common. However if HR does respond, the current question will change from,
“can people with ‘non-HR’ backgrounds become HR Directors?”
to
“can HR Directors become Chief Executive Officers?” (see for example the article Making the step up from HR to the CEO )

For those in HR who can rise to the challenge, the prizes are high indeed.

Does the shoe have to fit? I would be very interested in your views.

Finally I wish Mary Barra good luck in her new role!

The biggest barrier to transforming Human Resources is the lack of appropriate skills in HR, according to the 2008 Global HR Transformation Report (conducted by HROA in association with ADP).  This is the 5th annual survey with 129 executives around the globe in varying stages of HR Transformation.    DOWNLOAD 2008 GLOBAL HR TRANSFORMATION REPORT HERE

The survey defines HR Transformation as – “any concerted effort to change and improve HR operations, whether through outsourcing, shared services, internal reengineering, or a combination of these strategies”.

We use a broader definition. Successful HR Transformation needs to align all the components in the HR operating model including Business Partners, Service Centres, Centres of Excellence, HR Strategy, Managers and Employees.  Sometimes there is too much emphasis on implementing Shared Services or HR Outsourcing at the expense of actually delivering the HR Strategy.
(see comments by Jason Geller “HRO does not equal HR Transformation”)

The survey points to some interesting trends in HR Transformation :-

“The biggest ‘chronic hurdle’ that impedes transformation is the skills of existing HR staff.”
This is cited by over 60% of respondents.  The skills needed to manage HR are very different to the skills needed to transform HR.  The survey doesn’t mention which skills, but experience is required in Change Management, Process Design, Organisation Design, Project Management, Business Case Management, and HR Technology.   So what can you do? Consider these steps before starting your HR Transformation project, utilise transformation experience in other areas of your organisation and use HR professionals as ‘content’ owners.

“Most organisations are meeting or exceeding their cost savings targets.”
Sounds impressive, but of course this depends on what the cost savings targets are.  Some projects aim to break even, but allocate a larger proportion of their cost to strategic objectives rather than administration.

“Past HR Transformation lessons don’t appear to filtering out.”
Each organisation will have different goals, a different workforce and different starting points. But there are themes and lessons learned – so why aren’t they being shared in this digital age of collaboration?  Joining networks such as the HROA help.   Conferences are dominated by vendor/sponsors rather than providing HR transformers with real ‘independent’ lessons learned.  With more sharing and online networking things should improve, see for example initiatives such as our own  HR Transformer Blog and DiscussHR.

“Only 48% engage consultants or sourcing advisors.”
Some organisations are getting external support which is an obvious solution to the skills gap. On business cases which involve large IT transformation and cost savings, a review from an experienced, independent consultant can be money well spent.  There are still objections to using consultants who are perceived to push ‘pyramids’ of junior consultants and lack independence.  Do advisors need to up their game or do they need to market their benefits more effectively?

“66% plan to outsource some HR processes.”
Payroll is outsourced in nearly 90% of cases. End-to-end HR Outsouricng contracts are being signed (see recent IBM Unilever deal) , and buyers do see the benefits of HR Outsourcing, however buyers are even more careful in this environment. With major economic change there is less appetite for 10 year contracts and more examples of tactical sourcing.

“Price is most significant in provider selection.”
It is interesting that Financial stability has risen up from 12th most important factor in 2006, to 6th in 2008.  This will be Top 5 next year with much more detailed financial checking of potential vendors.

The ADP/HROA survey has provided a useful barometer of HR Transformation, it will be interesting to see whether more progress has been made on the barriers next year.

HR Project failure usually means increased cost to implement, reduced quality of final outcome, time delays and often leaves a huge dent in morale.

The list below are reasons why HR projects fail based on the number of sleepless nights they have caused HR Execs, and the more scientific approach of research and surveys. The good news is that they are all preventable – by following tried and tested methodologies such as Prince 2, brushing up on your Change Management skills and mixing all of this with a huge dose of common sense.

Typical HR projects can include change programmes, implementation of shared services, HR transformation projects, outsourcing and IT projects.

Top five reasons why HR projects fail include:

1. Lack of clear executive leadership. Any HR project needs a sponsor to help ensure that it is set up to succeed with the right resources. Having executive leadership comes into its own when the project has to traverse choppy waters. HR projects that have business (non-HR) sponsorship tend do well. Lack of leadership can lead to a lack of vision and people quickly forget why they are working so hard in the first place.

2. Skills of staff. It sounds obvious, but the key skill that is usually lacking is project management. There are simply not enough skilled project managers in HR with experience in successfully delivering complex projects. Many project management problems stem from inexperience, a common example is not breaking up the project into manageable pieces. Another key skill that is required for HR Project Managers is Change Management and unfortunately Project Management methodologies and courses do not emphasise this enough.

3. Governance not set-up properly. If the governance hasn’t been agreed formally at the beginning, it is amazing how initial enthusiasm can disappear when the going gets tough. This comes from not agreeing up-front how decisions will be made during the project. It is well worth investing time early on to establishing project governance. This helps ensure that issues are resolved quickly when they arise.

4. Not managing stakeholders effectively. For most projects, you will need to persuade human beings to change how they do things. This is very difficult and will require diplomatic and sometimes innovative methods to succeed. Not managing stakeholders can lead directly to other classic PM problems like not gaining employee buy-in, dealing with resource cuts, other projects getting priority and not dealing with genuine cultural differences. The key is to identify your stakeholders up front, work out how the project impacts them and what they will need to make the project work. Then ensure that you prioritise your time so you can work through any issues they may have.

5. Project complexity across multiple businesses and geographies. Complexity can be caused by working across different business units and geographies, each with potentially different drivers and cultures. To overcome potential problems, set up the project to gather all requirements, take time to understand your stakeholders and design your Governance to help resolve those tricky issues. Finally, use your sponsor to provide you with guidance where appropriate and watch out for barriers that are perceived rather than real.