1. In Search Of HR Tech Best Practices, by Naomi Bloom

2. The Future of Human Resources and Social Media, by Sharlyn Lauby, aka HR Bartender, on Mashable

3. HR Costs Rebounding?   from Michael O'Brien in HRE Online  

4.  Performance management: looking in the wrong place from Glyn Lumley, aka HR Maverick 

5. Service Levels for HR Services Delivery – An Evolution, from Jim Koenig – Equaterra

6. A systems thinking guide to outsourcing for the sceptical public sector leader, from the Systems Thinking Review

7. Is HR too big to innovate?, from J.Keith Dunbar, from DNA of Human Capital blog

8. Mobile Apps are Ringing up HRO, Linda Merritt from HRO Insights Blog

9. What Next for HR, Connecting HR at HRO Europe, from HR Transformer Blog

10.  Shared HR services the way forward for local authorities

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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.

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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?

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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!

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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.

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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.

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1. Conduct a skills audit

Which HR Transformation Skills currently exist in your organisation, and are they available?

2. Complete a HR Current State Assessment

What is your current HR performance like? Do you have the key HR performance metrics such as HR FTE to Employee ratio and HR Cost to Serve, broken down by division and geography ? If not, then you will need to develop a current baseline as a starting point – facts are key in making your case for change and deciding whether to buy services from outside.

3. Check your appetite for change

Any transformation programme is long, challenging and can take between 1 and 3 years. The impact and effort for your staff to move an organisation through a series of step-changes involving process and technology is often underestimated.

4. Understand your organisation strategy

To gain “buy-in” to your HR Vision you will need to be aligned with your organisations strategy.

5. Start thinking about who your sponsors will be

For any large Transformation programme to succeed, it is essential to have visible leadership to push changes through and lead by example. It is worth considering a “non-HR” Transformation champion.

6. Set this up as a formal project

The general rules of project management apply here to, so brush up on your project management experience and consider seconding a qualified project manager. Establishing appropriate governance is essential to deliver on time and to budget.

7. What is the appetite for outsourcing ?

Do you currently outsource services in other areas such as IT and Finance? Do you currently use 3rd parties to deliver HR services in payroll or Learning and Development ? Would a move to outsource HR Administration be too large a shift for your organisation in experience and strategy ?

8. Speak to your customers

Ask your key HR customers for their view of current service performance and future requirements. Surveys and focus groups can be developed, or simply ask your key customers the direct question over a coffee?

9. Start developing your vision

The key to gaining buy-in and providing clarity to your team is a clearly articulated vision. Who needs to input and deliver your vision will depend on your organisation, but it needs to inspire your staff, the Board, and deliver your organisations strategy.

10. Consider working with a HR Transformation partner

If you find you have skills and experience gaps in HR Transformation, then consider partnering with a specialist HR Transformation consultant.

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