Will HR in the Cloud kill HR Outsourcing ?

Will HR in the Cloud destroy HR Outsourcing ? HR Transformer Blog
 
 
 
 
 
 
 
 
 
 
Will ‘HR in the Cloud’ kill the HR Outsourcing industry  ?
 
Or, are the claims of the HR Technology industry in ‘Cloud Cuckoo Land’ ?
 
In Aristrophanes play, ‘The Birds’, written in 414 BC, “Cloud Cuckoo Land” was an unrealistically idealistic state where everything is perfect.
 
In our 2013 HR play, Ms HR Vendor helps the trusting Ms HR Director erect a perfect HR operating model in the clouds.
 
For HR Directors, this has the appeal of ‘killing two birds with one stone’.
 
Firstly outsource chunks of your HR services on a standardised platform.  Secondly, hand over responsibility for your HR systems to the same vendor.  
 
This service has been called BPaaS or ‘HRO in the cloud' and this report from Gartner, is worth reading on the topic –  From ‘BPO to BPaaS: HR Outsourcing calls for the cloud.
 
Will SaaS melt HR processes ? 
At the recent 2013 HRO Today Forum, in London, Mike Ettling, former CEO of largest global HR Outsourcing company, NGA HRcommented that the demand for HRO will decrease over the next few years.  In Mike’s view this is because  :-
 
“In the last 2 years we have seen the phenomenal rise of enterprise ready SaaS solutions in the HR industry.  The game changing impact of SaaS is the fact that SaaS is melting Business Processes.

In the past we designed our system around the process, now we have to design our process around the system.  There will be less scope for customisation.”
 
From this perspective, there will be less HR work in general and less outsourced work.  Not a good signal for the growth of the HRO industry.
 
For those interested, Matt Charney from Recruiting Blogs covered this panel debate well, in Transaction to Transformation: The Next Generation of Outsourcing  
 
HR SaaS – Practical Lessons from HR Buyers
In a separate session, Julie Fernandez from analysts ISG, provided some insights from HR Buyers, typically clients with > 10,000 employees. 
 
 
Amongst the trends and themes I picked up from Julie, were :-
 

- HR Buyers are cautious, ‘letting the dust settle’ on SaaS providers as they review their current HR Operating Models and future needs. 

- The rise and rise of Workday has actually breathed life into the HRO market – NGA HR, IBM and AON Hewitt are implementing or have HRO contracts using Workday software.

- HRO Buyers want both SaaS and services together, however are not willing to lose portal, chat, contact centre solutions that have been developed over last 10 years.  Expect HRO providers to develop solutions in this space. 

- There is a 15-20% HRO penetration level for orgs with >10,000 employees and there has been more new buyers in last 8 months than previous 2 or 3 years

- According to ISG, it seems HRO is not dead yet and in fact SaaS will actually stimulate market.

One of the HRO vendors told me that the Workday (SaaS) HRO deals are certainly smaller in size, which does tend to support Mike’s view on the impact of SaaS – it does reduce the HR work required.
 
Are the claims of the HR Technology industry in ‘Cloud Cuckoo Land’ ?
It is natural to have some healthy scepticism about the claims of the HR Technology providers on the latest generation of HR systems. (especially if you’ve had as many sleepless nights as me working on Transformation Programmes over the last 20 years!).
 
Haven’t we heard these promises from the HR Technology industry before ?    The claims are remarkably similar to the promise of ERP systems back in the 1990s.
 
That the new generation of software will be rolled out to willing managers enabling them to be more productive, more self-sufficient and  will help them manage their teams more efficiently.
 
Did the technology deliver the promises? Well generally, no.
 
One of the reasons that HR is no more strategic than back in 1995 is that HR Technology has not delivered the promises.  There are lots of other reasons why, and I refer to them in other posts “How to avoid HR Technology bogeys” and “Is your operating model fit for the future?”.
 
Part of the problem is that the software ultimately has to be used by those pesky human beings.  So we need good communications, training and support.
 
Isn’t SaaS or HR in the Cloud, just the ‘next wave’ of HR systems I hear you say?  We expect better functionality and usability in each new release, and HR Directors or managers don’t really care where the servers are located.
 
What is it about SaaS in particular that will drive such process standardisation compared to just another release of software ?  We still need to persuade employees to work differently. 
 
One of the great benefits of going with a SaaS solution is we do not have the expensive and time-consuming customisation fudges.
 
You get what you are given in terms of functionality and then configure for your organisation.  There will be a need to use the system provided for your HR Processes, and so there will still be change management required.  This will reduce the HR Service cycle times and the HR administration support needed – which is all good news as these savings can be spent on more value add activities.
 
Is SaaS a catalyst for more or less HRO ?
In my opinion, The 'size of the pie' will decrease (not as much as tech firms say) but the HRO slice will increase
 
In other words, there will be less work overall due to the benefits of implementing standard process, however, the proportion of work outsourced will stay the same or increase.
 
The drivers for RPO and HR Outsourcing will still be there.  Standard software will make transitions easier with consistent service levels – increasing the appeal of outsourcing.
 
Over the next couple of years we will see lots of activity with reviews of HR Operating Models, implementation of new HR systems, and more HR Outsourcing contracts. (and hopefully roughly in that order!)
 
The Workday marketing machine will get to your Board and you will need to have worked out your plan.
 
So as the 2013 HRO Today Forum ended, the HRO industry could be heard to mutter a collective breath of relief and echo Mark Twain,
 
"The reports of my death have been greatly exaggerated". 
    
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HR Tech Europe 2013 – Big Data, Robots and Cycle Paths

 
Andy Spence discusses Future of HR with a Robot at HR Tech Europe 2013
 
 
 
 
 
 
 
 
 
I have always found Amsterdam an inspiring place to be.   As you walk by the canals you experience the artistic and technological ambition of its residents with its rich history as the hub of a global trading empire.
 
The reason Amsterdam is still a thriving global hub in oil, diamonds, flowers and ideas is not because of its location or wealth but to it's engineering excellence and vision.  
 
Nearly one-third of the Netherlands is below sea level and prone to floods. In the 1950s, a series of dams, sluices, locks, dikes, levees and storm surge barriers were constructed to radically reduce the change of flooding. The American Society of Civil Engineers called it one of the Seven Wonders of the Modern World.
 
Just like the engineers who enabled Amsterdam to survive, and flourish, many delegates at the HR Technology Europe Conference have goals to provide the technology infrastructure required for their organisations to thrive.  They provide the right technology and tools in candidate selection, training, collaboration, productivity or basic workforce management.
 
The conference chatter and tweets was about psychopaths, psychos on cycle-paths (a hazard in Holland!), robots, the jargon of behavioural science, big data and predictions about the future of work.
 
Some facts and figures :-
 
• 1439 delegates attended
• 42 nations were represented
• 1 cute robot attended
• 8,245 tweets using hashtag  #HRTechEurope
82 tweets by myself plus 125 mentions – not bad as I was in listening mode this year – thanks to HRMarketer for the analysis
• 57%  of male vendors wore brown shoes (Thanks to @AndyHeadworth but you should always check your data source!).
 
Whether you were there or not, Download Presentations from HR Tech Europe 2013 and View some fantastic photos from Heather Bussing and others.
 
As I have written before, in Why HR Need to be Technology Champions, this is an exciting time to be working in HR, Technology and Org Development.  There are some important strategic choices to be made about the future of technology in our organisations.
 
Here are some themes for buyers and vendors of HR Technology that emerged for me in conferences sessions, conversations and tweets.
 
Its all about the strategy 
In Professor Costas Markides session, “Make your Strategy process democratic” he demonstrated why the first stage of the development of ideas needs to be democratic.
A question for HR Directors, is how widely did you cast your net for ideas into your HR Strategy ?
As Naomi Bloom outlined in her keynote,"Poirot's Order And Method: Making the business case for HR Technology" the starting point for any business case should be “what is the vision, metrics, value targets that matter?”
 
There is no point buying HR Systems that do not support the HR Strategy that in turn does not support your business strategy and goals.  Naomi in a later session also provided some useful historical context of HR systems and data requirements which have changed completely over the years. Put bluntly, the code and data structures that supported our organisations yesterday will not do so in the future.
 
The end of the HR enterprise software era
John Sumser took the historical perspective further in his session, "Re-engineering The Human Resources Function" in his view we are at the end of the HR enterprise software era, in terms of maturity.  The HR Technology industry has done its job well and provided automated solutions for most HR processes and in John’s view we should not expect much innovation at this phase.
 
However, very quickly we will move to a new exciting phase which will include integration of new data sets from outside HR from aggregate health care data, labour market data and actual work measures.  This really has the potential to transform workforce management, and provide competitive advantage to organisations who adopt early. Imagine the possibilities of predicting peaks and troughs in employee performance by merging HR and performance data with health indicators?  Of course there would be a few privacy concerns to iron out in this brave new world.
 
Talent minus Big Data = Unsubstantiated Rubbish
On the topic of data, there was lots of talk of Big Data, Nick Holley from Henley Business School gave a very interesting presentation on “Talent minus Big Data = Unsubstantiated Rubbish”  and also won the prize for best session title.  Nick gave good examples of using data analysis to solve business problems and told delegates that one of the most successful talent tactics is to identify and manage out the narcissists & psychopaths in your organisation.
 
Josh Bersin, in his session “The Datafication of HR” also demonstrated how HR Analytics could smash some organisational myths such as “people from top universities with good grades are high performers”.  Josh illustrated how HR has been evolving big data solutions for years and presented some great pointers in building this capability into your HR Operating Model.  We need to look at the current capabilities we have in HR and recruit people who are comfortable with data. 
 
One of the iHR Award 2013 finalists, MacroMicro, showcased a tool that sits on top of your HR data providing visualisations of your organisation (just don’t let the CEO get their hands on it until you have done a bit of data cleansing).
 
Visualising and playing with data is fun but this all needs to link back to your strategy, we need to start with the Business Problem we are trying to solve.
 
HR Technology Buyers are at a crossroads
‘61% of HR Professionals are changing their HR Technology in the next 18 months’ – with all the workforce and technology changes out there, there is understandably some hesitation in making long-term buying commitments.   In his presentation to industry analysts the day before the conference, Adel Al Saleh, the newish CEO at NGA HR (used to be Northgate Arinso)  gave his view that ”More HR Technology options has created inertia as organisations take time to review their technology and services landscape”.
 
I can understand why, and demonstrates why this is a good time to ask yourself, “Is your HR Operating Model Fit for the Future?”.
 
Congratulations to Appical who won the iHR Awards 2013 with a successful product and an innovative pitch.  They made the case for turning onboarding new employees into something much more fun with cutting-edge technology and social media.
 
The industry behemoth, Oracle, intends to continue to invest heavily in HR Solutions according to Mark Hurd at Oracle.  Mark also brought along his robot, Oscar, who is seen in deep conversation with myself about the future of HR.  After a couple of cocktails, Oscar confided that he planned to deliver a session next year on “The new field of Robotic Resources – RR”.
 
Finally, looking into my Google HR Glass (John Sumser predicted 10% of delegates will be wearing these at the Conference in 2014)  there will be lots of HR Tech contracts signed in 2014.  
 
I am looking forward to the HR Technology Europe Conference in 2014 and seeing how this group of  Workforce Visionaries will be building the technology infrastrucure for our future organisations to thrive.  And through my Google HR Glasses, I will also be watching out for less organisational psychopaths, psychos on the cycle paths and robots doing more HR and the odd keynote speech.

 

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Why HR Need to Be Technology Champions

This has to be the most interesting time to be working at the intersection of HR, organisation development and technology. 
 
There is a lot of buzz around technology as a driver for change in areas such as talent identification and development, or workforce productivity.  From working out which candidates are most likely to be our top future sales performers, to providing tools that enable a manager to monitor performance of a global project team.  At the same time we have massive changes in our workforce from the rise of the freelancer economy, to skills shortages and demand for 24 X 7 collaboration.
 
With this techno buzz comes heightened expectations on HR from shareholders, employees and the Executive.
 
HR technology solutions and HR strategy are intertwined, so that every HR Director needs to know the opportunities and challenges of new and emerging technology.  In 2010, Professor Ulrich said HR must master 6 competencies, including being a Technology Proponent.  In other words, HR needs to be a Technology Champion in our organisations.
 
Not necessarily understanding the nuts and bolts of configuration, but ensuring that the solutions will ultimately delivery our business goals and then successfully embed into the organisation.
 
With this in mind I am excited about attending the HR Technology Europe Conference in Amsterdam next week to see some of the technology solutions we will all be using in the next few years.
 
 
Now this may get the HR Technology Sales Teams excited, but not necessarily for HR Directors who do not want to go through the pain, and expense of divorcing their current HR Technology.    What we don’t want is – a lengthy courting process (i.e. sales pitches), where you show your colleagues the new 9 Box Talent Grid, only to realise that your HR Tech spouse is not quite what you signed up for.  For some large global projects, by the time the system is fully operational, the HR Strategy and HR Operating Model required to support it might have changed.  
 
We increasingly need to be looking at the HR Operating Model required to deliver our HR Strategy now and in the future.  A key part of that future HR Road Map is Technology.   So before you make technological changes, ask yourself – “Is your HR Operating Model fit for the future?”  
 
There is another very real reason why HR need to be Technology Champions – a staggering 68% of Technology Projects Fail.  However we define that failure, be it over budget, over time or outcomes not delivered, my belief is HR has valuable skills to prevent this failure.  HR has experience in change management, training, communications plus sourcing the right people to Avoid the HR Technology Bogeys  
 
Any technology that can give us predictable behavioural measures, can be a potentially powerful transformative tool. For example look at How Google Uses Data to Build a Better Worker.  However, for most organisations the reality is we do not have Google’s capabilities.  Research by Josh Bersin shows that only 14% of organisations have done any significant “statistical analysis” of employee data at all.
 
Let’s face it most of us struggle with the challenge of reconciling headcount data with Finance reporting! 
 
To make the most of ‘Big Data’, we need ‘Big Hypotheses’ from HR driven by our Business Goals.  Technology should not be about the art of the possible but the art of solving specific workforce problems.
 
….and talking of art….
 
For all those who like to combine cutting edge new technology with old Dutch Masters, another good reason for visiting Amsterdam is the reopening of The Rijksmuseum following a 10 year refurbishment programme, yes 10 years!  Hopefully your HR Data & Systems won’t need a ‘10 year refurb’ after this conference!
 
I will be blogging and tweeting as part of the Blog Squad at #HRTechEurope, so hopefully will see a few of you Amsterdam!   There are tickets still available with a special discounted rate for HR Transformers, so do get in touch for what promises to be an engaging event.
 
And follow @AndySpence and #HRTechEurope next week.
 

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Is your HR Operating Model Fit for the Future ?

HR Strategy Glue - Glass Bead Consulting
 
 
Current HR Operating Models are not fit for the future.  The implementation of the Ulrich model in the 1990s was driven by changes in technology, the need to demonstrate value for money, development of the HR Services landscape and a focus on more HR Strategy.  Ulrich’s research was built on trends which were transforming the IT and Finance sector at the time; including shared services, outsourcing,  manager self-service, and ERP technology enablement.  The ultimate goal was to spend a higher proportion of HR resources on delivering HR Strategy, and less on HR administration.
 
The Ulrich model delivered some benefits, but patchy implementation gave mixed results.  So after all the effort, the question remains - why is HR no more strategic now than in 1995?
 
The HR Business Partner (BP) role was introduced as a strategic partner and account manager for HR Services, however there have been challenges with the timing of the introduction of the role.  Launching BPs before HR Shared Service Centres have started leaves them with an impossible task of balancing transactional workload with the strategic expectations of customers.  In my experience of training BPs, I observed the ‘rule of thirds’ in larger organisations; a third are excellent, a third would be excellent with time and development, and a third will never be ‘strategic’ BPs.     The Business Partner is stuck between a rock and a hard place in a mismatch of expectations. 
 
In my view the great promise of HR ERP Technology has not delivered. Most organisations do not have one interconnected system for HR records, recruitment, learning, payroll, compensation management, succession planning tools and performance management.  Many multi-million dollar transformation initiatives based on HR Technology, have not delivered their goals, been late or over budget damaging the credibility of HR to transform organisations. 
 
HR has built a set of specialist functions that work well in silos, for example in Talent, Learning, Reward, Recruitment, Employee Relations, but don’t often work together as a whole to deliver HR Strategy.  There is evidence that we are not spending a higher proportion of our time on delivering HR Strategy as we did in the 1990s, from research carried out by Professor Edward Lawler of the University of Southern California. We have not made progress in improving the productivity of managers through enabling self-service tools. According to Towers Watson, 56% of organisations now require HR to approve transactions, which was certainly not the original vision of the Ulrich model.
 
The Ulrich model was developed from external drivers relevant in the 1990s but we now have a different set of drivers in place, and should re-evaluate our current structures.  Now is a good time to review our HR Operating Model, with over 50% of organisations with more than 5,000 employees in the process of re-organising their HR department from bringing in a new leadership team to redesigning HR services from the bottom-up. 
 
Technological innovation has provided big changes in the workforce.  It has also provided more opportunities to deliver better HR Services to a mobile, and more global workforce.  McKinsey estimate that the automation of knowledge work will have an economic impact of $5-7 trillion dollars, displacing workers with technology.  Workforce changes mean we have high youth unemployment in some areas, a jobless recovery, an ageing workforce that will need to work into its 60s and 70s and localised skill shortages, for example in science and engineering.  The demand for Talent is constant.
 
So where do we locate our businesses in an economy with high unemployment? Do we need a core set of employees on permanent contracts and flexible contractors who provide the right skills at the right time? Which employee services can we deliver through mobile devices?
 
HR is becoming increasingly fragmented and hived off into HR Services and specialist advice.  There is a growing need for more HR Strategy, yet there is less capability to deliver it.  There is a demand for support to transform organisations, yet HR has struggled with change management, technology deployment and Organisation Design required to transform itself.  The HR Services market is moving every quarter with new entrants, mergers and acquisitions.  New skills are required in analytics, influencing behaviour change, vendor management, and for HR to be workforce technology 'evangelists'.
 
So what can we do?  We can learn from the experiences of implementing the Ulrich model, but challenge parts of the model that are no longer applicable. 
 
1. Understand the changes in your workforce now and in the future, and assess the likely impact on your organisation
2. Challenge current and future HR skills you have and will need in the future 
3. Review technology innovations and partner with organisations that have a passion for improving workforce productivity
 
By focusing on the journey and not the end destination, you can move towards a HR model that will provide the 'HR Strategy Glue' enabling you to adapt and respond to future drivers of change. 
 
Join in the discussion on HR Transformer Blog or at the Tucana HR Change & Transformation Conference where Andy Spence is delivering his keynote speech on Future Trends in HR Operating Models.
 
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Top HR Transformation Articles from November 2012

In November we found out who will be the leaders of the United States and China for the next few years.  In the world of HR Transformation, we start with two articles which slay two old HR dragons, Performance Reviews and Employee Engagement.  We highlight the most important HR outsourcing contracts of the last couple of years, and finish with a book recommendation on Negotiation.  A skill we all need to be very good at in HR!

 

 

Before we put on the armour and go HR dragon slaying, we have been looking at the best way to share our favourite HR Transformation articles with you, so its worth checking out our new HR Transformation Magazine format below.   All our recent articles are featured here in addition to the HR Transformer Blog.  Bookmark this for your daily scoops on HR Strategy, Recruitment, HR Shared Services, Change Management, Business Transformation, Leadership, Learning, HR Outsourcing, HR Technology and other randomness.
 

 
 
We are now getting towards the end of the year, so it is a good time to look at what we should Stop, Start and Continue in 2013 both personally and professionally.  At the top of our STOP list are the dreaded annual Performance Reviews……
 
Why Performance Reviews Don't Improve Performance

You know we like to peek at what our Academic siblings are up to, and Ray Williams has written a good article in Psychology Today, Why Performance Reviews Don't Improve Performance. (incidently Ray has also written a novel called Dragon Tamer)
 
When we hear the phrase "would you mind if I give you some feedback?" what that actually means to most of us is "would you mind if I gave you some negative feedback?" wrapped up in the guise of constructive criticism, whether you want it or not. According to Williams,
 
“constructive feedback, which is usually critical, rarely helps anyone, and certainly rarely improves employee performance on the job.”
 
The prevailing theory is that criticism, which invariably is part of the performance review, will improve the employee's performance, and in addition the employee will positively welcome it. Nothing can be further from the truth.
 
The reality is that the traditional performance appraisal as practiced in the majority of organisations today is often incongruent with our values-based, vision-driven and collaborative work environments,yet Performance reviews have become institutionalised.
 
Samuel Culbert, a professor at the UCLA Anderson School of Management "this corporate sham is one of the most insidious, most damaging and yet most ubiquitous of corporate activities."
 
If you can look your Executive in the eye and tell them that the annual performance review is worth the effort, then fine.  However, if you have ever wondered whether they really do increase the performance levels in your organisation – then read this article for a different perspective.
 
Our view is, If your appraisal doesn’t improve performance then do something else with the time and energy this will free up.

 
The second HR dragon to be slayed this month is the Employee Engagement Survey. This article was written by Jacque Vilet at TLNT.  Most people recognise that engaged and motivated employees are more productive, however are we getting the murky lines between correlation and causation mixed up?
 
A typical quote from the those selling the merits of Engagement Surveys is :
 
“high engagement firms have a shareholder return that is 19% higher”
 
But isn't this a bit like saying :-
“more intelligent firms have a shareholder return that is 19% higher”
OR
“healthier firms have a shareholder return that is 19% higher”
 
All possibly true, but the question for me is, is the shareholder return higher because of higher engagement or is higher engagement just correlated with higher shareholder returns?
 
Of course successful organisations have higher engagement levels, profit margin and productivity.  They are possibly healthier and more intelligent too.  In these organisations, The Executive is getting something right on strategy and management.
 
I do vaguely remember torturous statistics modules at University – and it was drummed into our heads by exasperated Psychology Professors that  Correlation does not imply Causation
 
Making the assumption that higher employee engagement improves shareholder value is a bit like saying that
 
"Sleeping with one's shoes on is strongly correlated with waking up with a headache.
Therefore, sleeping with one's shoes on causes headache."

As Vilet explains “Every HR department wants to believe that high employee engagement causes company performance. But that is not true. Many in HR mistake correlation with causality and therefore don’t understand what drives what.”

We just do not know enough about the specific causes of high employee engagement.

Again if the activity conducting Engagement Surveys and associated reporting is only neutral on productivity, then it is not worth doing. You could be doing something better instead – like analysing specific performance issues.
 
So, why are engagement surveys so fashionable ?  This is another topic for another day, but a quick answer is (1) they are much easier than doing a proper root cause analysis  (2) they are pushed by a powerful sales effort.  Enough said for now.
 
To some, HR Outsourcing is another dragon that should be slayed, but we think there is still some puff in this dragon for the time being….

Our latest HR Transformer Blog article has a look at the The Most important HR outsourcing contracts from last 2 years.   Although there have not been too many blockbuster deals, there has been plenty of HR Outsourcing activity in smaller deals and single process outsourcing.  Find out which company has created an "HR Ice-Cream Sundae" by mixing up its HR vendors.

The Future of HR & Competencies

The new HR Competencies, have been issued from SHRM and highlighted by Cathy Missildine. You might remember from last year, Professor Ulrich's  What's next for HR? The six competencies HR needs for today's challenges which are:-

Capability Builder, Change Champion, HR Innovator/Integrator, Technology Proponent, Credible Activist and Strategic Positioner. 

We would both be interested to know which set do you prefer and why ?

 
Some other great articles from November

A Revolutionary Approach to Strategic Change  In this hour long Harvard Business Review webinar, John Kotter, foremost expert on leadership and transformation discusses a new approach to accelerate the achievement of their strategic initiatives in a rapidly changing environment.

BigData in HR: Why it's Here and What it Means

Given the global recession and talent imbalances in the world, companies are focusing on replacing their legacy HR systems to help apply analytics reasoning to HR and talent.  Josh Bersin provides his analysis, and for the visual thinkers provides a useful diagrammatic history in The inevitable Shift to HR and Analytics.

9 Ways HR & Recruiting Technology Will Evolve in Next 4 Years

"Most of the 10 million Millennials entering the job market during the next three years will expect a far better candidate experience than today’s." An interesting article on TLNT, from Heather Huhman.

The Amazonification of Recruiting

Bob Corlett creates a new word AND provides insight into current recruitment trends.

"The Amazonification of recruiting is accelerating. Sites like Yelp and Glassdoor are pulling back the curtain on candidate experience. LinkedIn has found a way to rapidly accelerate the endorsement process, and apparently will start to weigh your endorsements in their search results.  It’s a brave new world of accountability coming. Are your recruiting practices ready for it? "

Negotiate your L&D budget successfully  Why do people buy ? Apparently, there are 'good' reasons vs the 'real' reasons.  If you like what Simon has to say, we recommend his new book,  Negotiation Mastery: Tools for the 21st Century Negotiator. This might make a good Christmas gift for that special HR Business Partner in your life.

And finally, What Colours mean in different Cultures, with thanks to Tom @TomWHaak for this link.

We hope you have enjoyed our latest HR Transformation articles, a big thank you to those who contribute with fresh ideas and suggestions to share with the HR community. Do keep in touch with any of your future articles and suggestions @AndySpence on Twitter.

Subscribe now and get the latest and greatest independent views on HR Transformation direct to your inbox.

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Top HR Transformation Articles from October 2012

The HR Transformer Blog is back – we have been trawling the web to pull out the best HR Transformation related articles from October 2012.
 
There have been two big HR Technology Conferences either side of the Atlantic this month, filled with talk of ‘big mobile gamification in the data cloud’, or something similar.  After being initially dazzled for a moment, I rubbed my eyes and remembered, “It’s all about the People” and found some great articles on managing change.  I’ve taken a brief look at HR’s past and it’s future, finishing with some useful tips from HR Metrics to running your HR Shared Service centre like a Gordon Ramsay restaurant (but obviously without the expletives!).
 
Big mobile gamification in the data cloud  – and other disruptions at the HR Technology Conferences
The HR Technology Conferences in Chicago and Amsterdam made a big splash online. The jargon can get a bit confusing, so XpertHR have provided a very helpful guide for those who only dabble in HR Technology. The industry is buoyant after record conference turnouts, the successful Workday IPO and a flurry of takeovers including; SuccessFactors, Taleo and Kenexa. According to the press releases, new services in SaaS, mobile and big data will transform the way we manage people in organisations. The fact is many large scale HR Technology programmes do not always deliver intended goals. At a Technology Conference, funded by the technology companies – this is unlikely to be a theme with the speakers and bloggers.
 
Which begs the question, where are the unbiased, independent voices to support HR buyers of technology and services?
 
It is well known, that some analysts work for both the buyers and the vendors. According to an article by analyst, Mark Smith, Industry Exposé: Technology Vendors Skew Analysts and Influencers
“The dirty secret is that some of the largest technology vendors have forced industry analyst firms to contractually agree to the right to review, edit and approve any written research that references their name or products before it is published.”
 
With nearly two out of every three IT projects failing, I think there should be more focus on good governance, solid requirements and the people elements involved in change. See our article on How to avoid HR Technology Bogeys, inspired by the Ryder Cup.
 
“Nice interface, it even looks a bit like Facebook! Great, I can view on my phone. But how will this really help my organisation achieve its goals?”
 
Charlie Judy reminds us that “it ain’t a HR Strategy without technology” in a good post with some useful tips. HR Strategy should determine your HR Tech requirements, not the other way round, so don’t let the Tail wag the Dog.
 
A development I think will make a big impact is Salesforce’s entry into the market, with Work.com. If this sounds strange, read this excellent article by Appirio The Future of Work : Employees as Customers showing the parallels between HR and Marketing. I will be watching this develop with interest over the coming months.
 
For the visual thinkers, this caught my eye, HR technology on Pinterest from Deb Maher, spotted on #HRTech hashtag on Twitter.
 
Talking of Twitter, we have recently updated our lists of HR Transformers on Twitter for you to use, so let us know if we have missed anyone, and connect with me @AndySpence
 
People first
One of my mantras is that for technology investment to be worthwhile, we need to focus more on the people who will use it, these two articles on Change Management were clear and insightful.  Ten Reasons People Resist Change from a true teacher, Rosabeth Moss Kanter, and a golden oldie with some useful lessons, from Harvard Business Review – The Hard Side of Change Management.
 
HR Operating Models – Ulrich Model 2012
The evolution of HR operating models over the past two decades has been slow in some areas.  In the article, HR's Future Looks Strategic—or Does It?  University of Southern California professor Edward Lawler has tracked the amount of time HR managers spent on working as a strategic partner since 1995. He recently released the results of his latest research, from 2010, and found nothing has changed.

"When we ask them: 'What is their role in developing business strategy for their companies?' we're getting the same answers as we've always gotten," Lawler says.

Why is HR no less strategic than in 1995?

My view is the move to a simpler Ulrich model has generally aligned HR better to organisational goals, focused more on the customer, enabling economies of scale and economies of skill.  However the transition to this model has not always been successful and the interpretation of HR roles such as the Business Partner have not been wholly successful. 

Which leads me to an interesting article Has the Ulrich model narrowed HR career paths?   
 
My observation is that we have some great HR Specialists in Reward, Pensions, OD, Learning – however we are slowly losing those who have the big picture of the HR Strategy.  This is retained with those with more of a generalist background – currently in leadership positions, but I have concerns about succession when they retire. 
 
Another question for HR Operating models related to demographics,   in 2020, one third of workers will be over 50, so how will this impact HR?  We ask the question of the Impact of the Ageing Workforce on HR.
 
Ulrich’s original work on HR Operating Models was influenced by what was going on in other functions such as Finance and IT.  I was interested to read that there are similarities between HR and IT in the challenges the leaders face. (e.g. struggles for the CIO to become a true partner to their business  -  sound familiar?).  Time for the CIO to jump on the wave of change from Outsourcing Magazine.
 
Some other useful articles for HR Transformers
HR Shared Services: What works well for a restaurant could help HR Shared Services function. Simon Brown, writing in SSON, suggests Restaurant-style Service (Tier-0 and Tier-1) “Tier 0 – to ensure your menu is well laid out, easy to search, navigate and read.” Great article, but be careful with following Gordon Ramsay’s style too closely!
 
HR Metrics of Note: Revenue Per Employee VS. Profit Per Employee  A good example of using HR Metrics that matter, in this case to the investor community, who use Revenue per Employee to analyse retail giant Amazon. Who else could this come from but the HR Capitalist?
 
Powerpoint use and abuse – Few pieces of office software have simultaneously been so used and abused even causing ‘death by PowerPoint’. Find out about Cognitive Dissonance, Noise & Overload from Donald Clark.
 
The Top Social Tools For 21st-Century HR Humans, communication, work etc, makes HR the ideal spot from which to harness changes in work habits for the benefit of the company – good read from FastCompany.
 
And finally, Live language translation. Now this is a disruptive technology! Remember Babel Fish from Hitch hickers Guide the Galaxy.  I did a Masters in Cognitive Science in the mid-90s and some of these technologies are starting to emerge – very exciting developments indeed! Hat-tip to Graeme Codrington for this link on Twitter.
 
We hope you enjoy our latest HR Transformation articles, a big thank you to those who contribute with fresh ideas and suggestions to share with the HR community. Do keep in touch with any of your future articles and suggestions @AndySpence on Twitter.

 
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How to Avoid HR Technology Bogeys

It’s only a week after we were gripped by a great sporting comeback in the Ryder Cup in Medinah, Illinois and once again our focus is back in Chicago, this time for the HR Technology Conference and Expo, which starts on Monday 8thOctober.

There is talk of “disruption” in the way we manage the people in our organisations led by new tools and technologies. Plus there are exciting developments with HR in the cloud, Social in the Enterprise, Analytics (including Big Data) and of course, Mobile Technology.

The HR Technology industry is in ebullient mood after some big trophies have changed hands in the Wall Street clubhouses. These include :-

SAP purchasing Success Factors
Oracle buying Taleo
IBM procuring Kenexa
Plus of course, Workday launching its IPO

But back on the fairway, away from the conferences, the analysts, and the business press – implementing HR Technology successfully does have its challenges. Selecting the right technology platform with the right functionality is hard enough. Guessing where your business and your workforce will be in the next 5 years and then persuading your sceptical Line Managers that this will help them in their job is even harder. If in doubt, see how well you get on with this useful list of HR Technology Questions from Naomi Bloom.

But, for every perfect delivery there is a bogey.

It is all too easy to get bedazzled by exciting innovations and disruptions taking place, whether in the clouds or by ‘belly putters’. The fact that 68% of technology projects fail, because companies forget their ‘basic swing’ hitting a few unexpected Bogeys along the way! The good news is that HR have crucial skills to bring on the people side of the project that are so critical to success.  HR can lead projects with confidence, avoid the bunkers, and ultimately become Technology Champions. (see article on Why HR Need to be Technology Champions)

Although I can’t make the HR Technology Conference Expo this year, we here at Glass Bead Consulting, have played a few tough rounds over the years in the HR Transformation Cup. Here are some reflections from the HR Clubhouse we have come up with to help with your handicap and ensure project success.

1  Agree how decisions will be made during the technology implementation

So the first big decision went OK.  At the beauty parade, the software company wheeled in their best salesperson and your Finance Director and Technology Director were impressed enough with the pitch to go with your recommendation for Fusion/SAP/Workday/other. You didn’t really have to revert to your evaluation criteria and weightings, but they still gave the right answer. First job done – now comes the hard bit…

As you get into delivery, you will have to make a number of decisions along the classic project management triangle of ‘Time vs Scope vs Cost’. Often there will be competing demands on your budget, resistance in unplanned areas and resourcing conflicts. At this point the last thing you need is any delay, with 10 expensive Fusion/SAP/Workday consultants on the project, you’ve calculated their burn rate on the train to work (but didn’t tell anyone).

It is critical to spend time up front working through how decisions will be made on the project, who will make them and what the escalation path will be. Governance is key in any substantial project. Make sure a clear governance structure has been agreed up from the onset, and ensure there is a business sponsor to help iron out issues.  Decide who will be on your Governance Board and what their role will be.

When you get going, on occasions you will hit the ball into the rough, and will need to have some difficult conversations on scope, timings, budgets. You will want to remind everyone the terms they agreed at the beginning of the project.

2  It’s the People, Stupid

Start thinking about the change strategy right at the beginning. The Technology Account Manager will make the deployment sound so easy, if mentioned at all. However, think carefully about all your stakeholders, what they need from this change, what their concerns will be, start rehearsing your messages and arguments because you will need to start them soon.

In our experience, to develop an effective change strategy is a canny mix between the high-level, for example, ensuring the change is couched in your organisational goals, and the low-level, getting out a monthly project update, keeping the intranet portal up to date and so on.

Ensure that when you construct your budget and programme team, you have allocated enough resources to communications, change and training expertise – but you work in HR, so you know this right?

3  Agree the goals of the project

Then ‘tattoo’ them somewhere strategic, well at least get them printed on some nice mouse mats or put some posters up. There are many reasons to put in a new HR System and different stakeholders will have diverse drivers and see the benefits in different places. Irrespective if this is to deliver a transformational change in people management, consolidating different systems of records, or to enable employee self-service. Get consensus up front on the goals of the project, show how these goals links to your overall organisational strategy and your HR Strategy.

The new system is ultimately there to delivery HR goals and ultimately make the organisation more successful.

When you get into the project, a few shots will inevitably be hit in the bunker, and there will be crunchy decisions to make, but make sure you can revert to a compelling vision and goals for the project. Also ensure your sponsors agree with these and communicate them widely.

And finally, make sure that ‘the tattoo’ is temporary.

4  It’s still the People, Stupid  – Identify what skills you will require

The skills needed to run HR are not the same as those needed to transform HR. Review how you will get the skills and experience required in programme management, process design, technical skills, support knowledge, change management. Then work out when these will be needed and for how long those skills are needed. Do a skills audit and work out the gaps – but this should be easy as you run HR.

You will need to fill the gaps, identify all the team members, considered the progression of roles, procured any external contractors or consultants and developed training courses.

Remember, your project team capability has the biggest impact on success not necessarily the software.

5  Define your HR Operating Model and HR Processes

It is important to know what flavour of operating model your new technology will be supporting in the future. Will there be changes to what you expect Line Managers, your workforce, your HR Business Partners to do? What is the scope of the HR shared service centre and how much might be delivered by 3rd parties in the future? It is vital that your new system will support this.

At Glass Bead Consulting, we have developed a HR Process Inventory which details every HR service, and who should be doing what in the new operating model. We found this tool really helps our clients stick to what it really needed in terms of requirements. A HR Process Inventory helps flush out ownership and interface issues at a process level, before it becomes a problem for the System Design.

It is easy to forget that typically a new technology system might not deliver real benefits for many months or years, once you have completed an eye-watering amount of data cleansing and trained the Line Managers to use the technology correctly. Unfortunately, for large global projects, by the time the system is fully operational the HR Strategy, and HR Operating required to support it might have changed anyway.

By clearly articulating your HR Operating Model and HR Process Model you can reduce the risk that they system is not fit for the future.

Finally – don’t let the Tail wag the Dog. The biggest mistake of technology projects is to let the system lead the process you will be delivering to your customers!  Our firm belief is HR has valuable skills in Change Management, Training, Communications, sourcing the right people and resources to drive any projects, including IT system implementation. Increasingly, HR also need to be Technology Champions to avoid those expensive bogeys.

It would be great to let us know what you think, or share lessons learned, on the blog or #HRTechConf

Your loyal HR Transformation caddy,
@AndySpence

 

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Will HR Outsourcing ride the Third Wave?

There’s a common belief that the third in a series of ocean waves is the biggest. If it’s true for waves of change in HRO too, this latest wave of transformation in the industry will have a considerable impact. According to Anthony Hesketh in HRO Today transformation is back on the Outsourcing agenda, if indeed it ever went away.
 
We all understood the logic of the first wave of HR Outsourcing in 1999 – freeing up HR to focus on strategic aspects of the job, introducing standardization, self-service technology and Global Service Centers. It was this desire for HR Transformation that created ground-breaking Global HR Outsourcing deals with Exult-BP and ePeopleserve.
 
Back then HR consultants from the Big Four, heading for the exit, process-map and SLA template in hand, myself included, could be heard muttering under their breaths ‘every last large organization will want an HR portal and centralized HR service’, (while they hungrily signed-up to their dot.com share-options). Of course they didn’t.Innovation is a tricky business. Potentially great ideas get ignored because markets are too small, or the change doesn’t fit other people’s business models or match existing values. Sounds familiar?
 
The second big wave of change in HRO contracts came around 2006, including Unilever-Accenture, Johnson & Johnson – Convergys. These didn’t quite deliver our dream of pre-configured, hosted and e-Enabled services either. Instead, the services they offered were bespoke, tailored to clients’ demands and the particular nuances of their HR Operating Models. Still they had some success, given the industry grew to be worth billions of dollars.
 
In response to the economic meltdown of the last few years, organizations began thinking again, developing new business strategies, and new operating models. The HRO industry consolidated. Outsourcing contracts lasting a decade were thin on the ground when organizations couldn’t see where they might be themselves. Out of this has come the third and potentially most significant wave of transformation for HRO.
 
The focus for HR has shifted to employee productivity and engagement, deploying the right skills at the right time, mergers and acquisitions, and developing staff. HR needs to transform itself and the way it operates in order to deliver, enabled by organizational structures and processes better aligned to the businesses it serves. A greater share of the HR responsibility needs to be carried by line managers too.
 
The question for HRO vendors and HR Executives is what role will HRO play in the move to new HR operating models?
 
One way will be through more standardized HR services. HR needs to demonstrate value for money. Can a business justify providing employees with a personalized HR service when competitors get good results for less money using self-service processes. If HRO vendors can provide standardized services with user-friendly tools then there will be a sea-change in HR Operating Models.
 
HRO providers can also offer web-based tools to enable improvements in collaboration, productivity and managing the workforce. Delivering these tools, allowing buyers to avoid large upfront costs and access to the best solutions is an attractive proposition. Those HRO vendors who provide tools and services that help address organizations’ key talent management issues will thrive. Watch out for innovative market entrants building rapid market share with a credible HRO/SaaS model.
 
Transforming HR is about changing how people work and behave, not merely changing systems and processes.  Having worked on both sides of the HRO vendor/buyer fence, I have seen opportunities where skills gaps in managing change, managing vendors and transformation programmes could have been bridged. HRO vendors have been reluctant to share (or sell) their change management skills and can play a significant role in the move to new HR operating models by sharing their experience, knowledge and skills with organizations.
 
HRO will enable a leaner corporate function, by reducing central transactional HR work, pushing out more ‘people management’ to managers enabled with much better skills and tools. The onus is on HRO providers to be innovative and enable more self-service, for example by utilizing mobile devices for time-recording, checking schedules, benefits, vacancies.
 
HR Transformation is not back. It never went away. For HR executives to benefit from cost savings and to achieve their strategies, they will need to accept increasing standardization. Industry consolidation, technological innovation, economic pressures will all help to make this happen, and we could see HRO take off. All change is disruptive, outsourcing in the HR industry included. The early innovators of HRO had the right ideas at the wrong time. Now the conditions are right for it too.
 
This article was originally published in the Spring 2011 edition of HRO Today, by Andrew Spence.
 
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HR Transformer Blog – Most Popular Posts of 2010

Here are the most popular HR Transformer Blog articles from 2010.  Many thanks to all those who stopped by and provided ideas, links and comments.
 

1. Stop, Start & Continue – A Guide for HR Transformers

What will you Stop, Start & Continue in 2011?  Includes a useful PDF worksheet.

2. HR Transformation Articles of the Month

Add this link to your Bookmarks and browse over 90 different articles.  We trawl through the web to bring you a selection of the most interesting HR Transformation articles of the month. 

3. Future Trends in HR Operating Models

If you enjoyed reading this, check out our longer articles on What the future holds for HR , on Evaluation Centre (free, easy registration required).   Downloadable PDF article about the trends shaping future HR Operating Models.

4. HR Benchmarks – A Government Health Warning

Very topical subject, we did some analysis on UK Government HR benchmarks and attached the data in this article.  The original statistics have disappeared from the Government website, so we have had quite a few hits from Whitehall.  Also featured in the first online edition of HR Magazine.

5. HR Transformers on Twitter

11 Lists of great people to follow on Twitter, including consultants, HR practitioners, leaders, writers, analysts, techies and teachers.

6. Are you a HR Twitter Virgin?

Do you still know people in HR who have not used Twitter, surely not!  Here is a useful guide to get them started….

7. Top 5 Reasons HR Projects Fail

A golden oldie, but are we still making the same mistakes ?

8. HR Outsourcing – The Challenge of Picking Winners

In choosing a HRO vendor, a key question is How do you know they will last the course?

9. Why England Lose – Talent Management Insights from Football

Inspired by the World Cup, what can we learn from studying the management of football?

10. HR Survey Highlights Skills Gaps in HR

Very useful annual survey from ADP/HROA, see also this years findings in HR Transformation Delivers solid Savings of 25%

 

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Top 10 HR Transformation Articles in November & December

 
We start 2011 with a bumper issue of HR Transformation blog articles from the last two months of 2010. In between meeting year end goals and wrapping presents, our HR bloggers, writers and thinkers are in a reflective mood with some thought provoking articles.
 
Out with the old and in with the new, we kick off with a couple of articles which aim to smash some of the myths surrounding ‘best practice’ in HR. Our HR Maverick presents the case on why we should dump the dreaded annual Performance Review, with some help from Mr. Deming.
 
The ‘love/hate’ relationship HR has with Social Media illuminates the dichotomy HR sometimes finds itself in – on the one hand in its traditional role as “enforcer” and on the other side as an “innovator”. We highlight a couple articles that will appeal to both sides, from Malcolm Gladwell to Mashable.
 
At Glass Bead Consulting we are embracing social media in HR. Jon Ingham and myself co-hosted a Connecting HR Twitter chat one foggy evening in Amsterdam, from the HRO Summit Europe Conference  – read more about our discussion.
 
Do you know your “HR Cost per employee”?   Is it $1000 or nearer to $3000 per employee or? Read up on some recent trends before the CFO taps you on the shoulder and asks you…
 
Talking of costs, cost cutting is in at the top of British Government’s agenda, as it looks for ways to allocate more resources to frontline services. We have three insightful articles on the case for HR Shared Services from a UK perspective.
 

Finally, we hope you enjoy our latest 10 of the best HR Transformation articles and a big thank you to all those that come back to us with ideas and suggestions to share with the HR community. Do keep in touch with any of your future Top 10 articles and suggestions -  @AndySpence on Twitter.

 

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

In this article Naomi Bloom reflects on the quest for best practice in HR Technology and HR Transformation. 
 
We have all seen the sales pitch of “this system will transform how you deliver HR Management.”   However, in Naomi’s view this won’t happen unless you are willing to redesign your HR processes.  She writes that “If you don’t have proven competency models for your key roles, you won’t get competency-centric HRM, no matter what the software does”.
 
Naomi outlines three types of practices that are amenable to process improvement through automation, outsourcing & process redesign. Read more about her big P processes, little p processes, and business rules in this excellent article.
 
Another person to tackle HR “Best Practices”, is Ron Ashkenas, in the Harvard Business Review. He answers the question “Why Best Practices Are Hard to Practice” and according to Ron, there are two main reasons.   
 
Lack of Adaptation – companies are so different, it is rare that a practice developed in one place can be applied elsewhere without significant customisation.
 
Lack of Adoption – companies that utilize a borrowed process or tool without full leadership support and commitment, think that just having the tool itself will generate the desired results.
 
In our view, somewhere along the line someone in the organisation needs to think deeply about how to actually implement organisational strategy. This will nearly always involve the challenging task of asking people to work in a different way. If this change uses tools, theories or methods derived from Systems Thinking, Lean, 6-Sigma or ‘some Blu-Tack, Post-It notes and elastic bands’ then so be it. It doesn’t really matter which tools and methods are used as long as the change works.
 

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

The adoption of social media at home and work seems to pose some problems for HR. The challenge characterises HRs’ struggle to deliver true value in its role as Business Partner. 
 
There is a balancing act; on the one hand HR needs to maintain one of its traditional roles of policing policies and keeping managers’ noses clean. On the other hand, HR is required to improve employee performance, engagement and be Technology Champions looking for new tools that can transform the workforce, help them to be more productive and ensure the ‘stars’ stay at your company. 
 
For sensible tips on Social Media Policy, read The Future of Human Resources and Social Media, from Sharlyn Lauby, aka HR Bartender, via Mashable.
 
For the HR police…
If you are worried about your employees flippantly using Facebook all day, then imagine what the introduction of the telephone must have done to “Staffing Managers” or whatever our HR predecessors were called !  Humorous and thought provoking cartoon here from Competitive Futures,The Telephone – a disruptive technology.
 
For the social media revolutionaries…
Those that get a little carried away, with “vive de revolution” approach when it comes to Social Media will find this article interesting “Small Change – Why the revolution will not be tweeted", by Malcolm Gladwell in the New Yorker.
 

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

Do you know your HR Cost per Employee?
 
A new report, from PricewaterhouseCoopers/Saratoga “2010-2011 US Human Capital Effectiveness Report”, finds that this key HR statistic is returning to pre-recession levels.  The report finds that HR costs-per-employee rose in 2009, to $1,569, up from $1,462 per-employee in 2008 and close to the pre-recession average of $1,610 in 2007.
 
In our view, HR cost per employee is a very useful metric – much more useful than the traditional “HR:Employee Ratio”. It takes into account the amount of outsourcing, relative cost of the HR function and is easier to make comparisons.

 

 

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

Do you currently run an annual performance management process where line Managers sit down with their team members and discuss their performance, sometimes with a link to remuneration and improving contribution? The Systems Thinkers, such as Glyn Lumley, say that this process is not only a complete waste of time, but is also destructive to morale.
 
According to Glyn, Improvements to organisational performance does not happen one employee at a time. The problems are in organisational systems and processes – it’s here that we will find the real opportunities for improvement.
 
An article referring to System Thinking, is not complete without a quote from Dr. W Edwards Deming. “The supposition is prevalent … that there would be no problem in production or in service if only our workers would do their jobs in the way they were taught. Pleasant dreams. The workers are handicapped by the system, and the system belongs to management.”  
 
If you don’t get improvement in performance, then why bother? Wouldn’t it be better to invest time and cash in initiatives that deliver better results?
 

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

So you have an SLA in place, however your managers say that “the service levels are all green but we are still frustrated”.   Jim Koenig from Equaterra show the evolution of service levels along the continuum from tactical to measuring both tactical and strategic health.
 
On too many occasions we see SLAs as a bureaucratic step, rather than as a useful way to manage service relationships.
 

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

If you are a public sector leader (Chief Executive, politician, manager), your budget has been obliterated and you know you have to save money. Some of your peers are jumping headfirst into outsourcing and you are considering doing exactly the same. You hesitate. Who hasn’t heard of the outsourcing horror stories? This is a good article with some useful questions if you are thinking of outsourcing, with free PDF attachment.
 

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

Keith Dunbar asks a good question: “is HR too big to innovate?”
The recent 2010 IBM Chief Human Resource Officer (CHRO) Study identified three key areas requiring attention.
 
1. Cultivating creative leaders
2. Mobilizing for speed and flexibility
3. Capitalizing on collective intelligence
 
All three of these focus areas will rely heavily on the ability of HR to innovate itself at a pace that keeps up with the global changes taking place.
 
A key question for HR is; are we too big to innovate?
 

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

What are the killer apps for mobile devices in HR Services?
 
From mobile workers submitting an expense claim, commuters with access to their teams holiday schedule, approving a training request while waiting for the bus, Gary Bragar from Nelson Hall, outlines how Mobile Apps will stimulate the HRO Market.
 
For buyers using SaaS HRO platforms, providers will be developing mobile apps that meet the needs of multiple clients, as well as rolling out applications as they become available by the provider of the underlying HR system (usually Oracle or SAP.)
 

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

I enjoyed speaking on the expert panel at the HRO Summit Europe Conference in Amsterdam with Peter Cappelli, Jon Ingham, Nigel Perks, Jane Owen Jones. Jon and myself carried on the conversations from the Plenary Expert Panel and opened up online with a #HRChat – you can read the transcript here…..watch out for other HR Chats, at Connecting HR site.
 

For those at the conference or interested, here are the views of Jon Ingham and Gary Bragar as they give their highlights of the conference themes in HR Transformation and HR Outsourcing.

 

10.  Shared HR services the way forward for local authorities

Here are three different articles on the use of HR Shared Services in UK public sector.
Shared HR services the way forward for local authorities. Two East Midlands authorities in the UK, are to team up the HR services in an effort to cut costs and improve efficiencies. Leicestershire County Council and Nottingham City Council have signed a partnership deal to share HR and other administrative functions in a bid to save more than £2 million per year.
 
HR ‘must lead from front’ on MoD cuts. HR staff numbers in the Ministry of Defence will be reduced by half over the next two-and-a-half years but, at the same time, the austerity measures facing the public sector present the profession with a “phenomenal opportunity”, according to Jonathan Evans, director, civilian personnel.
 
Gus O’Donnell [head of the civil service] described the challenge we face as the leadership challenge of a generation. “I think it is not just a generation but a number of generations,” he said. “It is important that HR leads from the front. HR is uniquely placed to make a difference and we have got to make that difference now.”
There are 85,000 civilians in the MoD but, as announced in last month’s Strategic Defence and Security Review, over the next three to four years this will be reduced by 25,000 – nearly 30 per cent.
 

Shared services ‘not a panacea’ for cost-savings. “Shared services have been heralded as a panacea to solve the [public sector spending] problem,” continued Shoesmith. “It is one option but there are many others. £81 billion is a lot of money to lose out of public services over the next four years, but the cuts can be delivered in a variety of different ways.”

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