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.  “The Future of HR” from a shareholders’ perspective -  from Dr John Sullivan

What would HR look like if it were redesigned by shareholders? This is a really interesting perspective on the role of HR from Dr John Sullivan.

2.  The Future Of HRM Software: Embedded Intelligence - from Naomi Bloom, at the In Full Bloom blog

This provides some great insights into the future of HRM software from one of the most knowledgeable experts in the industry.

3. DIY for HRO – from Mark Stelzner, at Infexion Advisor

4.  10 Lessons Learned in the Quest to Become Strategic in HR- from Cathy Missildine Martin at the Profitability Through Human Capital Blog

Great learnings expressed clearly and without jargon.

5. The Holy Grail…Human Capital Development Aligned to Strategy - from J. Keith Dunbar at the DNA of Human Capital

6.  Lynda Tyler Cagni, ex Ermenegildo Zegno on HR 2.0 – from Jon Ingham's Strategic HCM Blog

This is a great case study providing useful insights.

7. HR Technology Trends for 2010  – from John Sumser on HR Examiner

8. Government sets up efficiency hit squad – and warns HR to prepare for a storm – from Rick at Flip Chart Fairy Tales

9. Could the Whitehall reshuffle lead to one massive government back office?  – from Inside Outsourcing at Computer Weekly

10.  Met chief: HR could be “priced out as an expensive overhead” – interview with Martin Tiplady, HR Review

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.

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.

The potential benefits of Human Resource Outsourcing (HRO), have been well documented but not always delivered. These include reducing cost, avoiding HR technology investment, re-aligning HR towards delivering more strategy and improving HR services. (see Top 5 Benefits of HR Outsourcing). Choosing a vendor that matches your requirements and will work with your culture is difficult enough, but it also important to take a view on who the likely ‘winners’ will be in the HRO industry.

At the moment, in supporting our clients as they look at their HR Transformation options, we think one of the biggest challenges is that of ‘picking winners’. Whether considering HR Outsourcing for the first time, re-energising an existing contract or simply bringing the whole show back in-house. A wrong decision now could mean you are lumbered with the wrong vendor, solution or the wrong technology platform for the next 7-10 years. This has always been a challenge, yet is more significant now with big changes in the HRO industry. Nothing distracts the vendor’s senior management team more than mergers, acquisitions and a major change in direction.

Lessons have been learnt since the first generation HRO contracts of ten years ago, such as BP/Exult (for an interesting account, see The Great Vendor Bender free login required to HRO Today website) which has renewed its contract with Hewitt, following an ‘about-turn’ of its plans. As David Ulrich, a professor at the University of Michigan’s Ross School of Business reflected, ‘Often the first pancakes or first batch of cookies do not come out well.’

The giant HRO deal between Accenture and Unilever in 2006 has now been ‘digested’ following some implementation challenges. Since then, the HRO market has fragmented with some big players moving back to their ‘comfort zone’, focusing on their core markets and strengths, for example, Hewitt.

Other major changes in the industry include acquisitions such as ACS/Xerox, more ‘best-in-breed’ deals and the rapid rise of Recruitment Process Outsourcing (RPO), see for example, RPO ends 2009 with a big bang and begins 2010 on a high note. Buyers are now more likely to have a HR Operating Model with multiple HR vendors covering areas such as HRIS, Payroll and RPO. In fact increasingly more and more is up for grabs in HR outsourcing, see the People Management Guide to Outsourcing – Out of the Ordinary, including our thoughts on what should be outsourced and what should be retained.

As we predicted in our attempt to peer into the future of HR in our ‘Glass Bead Crystal Ball’, Future of HR Operating Models, there is still more consolidation to come in this $6 Billion Global industry. For more info, see HRO provider acquisitions on the rise from HR Outsourcing insights blog.

Hot off the press, Northgate Arinso have acquired the HR Management Services of Convergys. This is a bold bet on the future of the HRO market, and should combine the HR Service Delivery capability of Convergys US and European HR Service Centers, with Northgate Arinsos innovation and technical strengths. See Horses for Sources, the new Analyst firm in the starting stalls, with their take on the deal NorthgateArinso buys its way to top spot in Enterprise HRO and it only cost them $100m.

In picking a vendor, ‘financial stability’ has always been important in our Glass Bead Consulting weighted evaluation criteria, but now this has a much higher rating than 4 or 5 years ago. The rare AAA credit rating of ADP has a bigger pull than ever before.

Many organisations are attracted to the ‘on-demand’ HR outsourcing model with a view that there is no need to host the technology yourself with employees accessing services over the internet. This reduces some of the risks of picking the right technology platform, as it’s taken out of your hands. See for example, Northgate Arinsos 7 year HRO contract with Astra Zeneca, in 105 countries and 65,000 employees, based on their ‘euHReka platform’.

So the HRO market is changing all the time and the benefits and risks of HR Outsourcing will vary for each organisation, its requirements and context.

To minimise your risks in choosing a HRO vendor, consider the following :-

1. Think carefully about your Sourcing Strategy, will you put all your eggs in one basket or go for a best-of-breed approach with HR Processes? Make sure that the different vendors will be able to work with each other culturally and operate with compatible technology.
2. Establish your vendor evaluation criteria up front, work out as an organisation what are the relative weightings and identify any ‘deal-breakers’.
3. Work with your legal team to develop flexibility into the contract, including break-clauses and allowing interfaces with other vendors.
4. Consider using an independent HR outsourcing advisor who will know the market well and take you straight through to the Request for Proposal short-listing based on your requirements.
5. In your vendor evaluation, listen carefully to the vendor’s answers on their long-term strategy for HR Outsourcing.

Finally, there are great benefits for HRO as part of a broader strategy of transforming HR or to reduce costs, but keep an eye on the marketplace and picking a winner will pay a healthy return.

There are more useful HR Outsourcing resources in the HR Transformation Knowledge Bank

Photo Credit :- Andy Spence – Brighton Races – October 2004

Are UK HR professionals the ’social butterflies’ of the online World? Researchers monitored 2000 online conversations in the UK over September and October as part of their research. The conversations included employers, consultancies, and employees discussing HR related topics. The interesting report from CHA, the workplace communications consultancy, was based on research by online specialist Pass It On Media. It found that the tone of conversations was mainly neutral to positive which surprised the researchers who expected more ‘angst’ in the current economic environment. The report is worth a read with innovative research, case-studies from Virgin, E.ON UK and Dell, and some very useful and practical tips for employees and employers alike. Download the PDF "Conversations at your fingertips – How HR professionals score as social networkers"

The findings that stand out for me :-

1. 1. The key venues for conversation are message boards or forums, which account for 54%, followed by social networks such as LinkedIn (23%) and blogs (23%).
2. 2. Broadly, the themes covered are: the working environment & friendship at work, salaries & related issues, how people are feeling, and work/life balance & holidays.
3. 3. The top five are LinkedIn, Facebook, iVillage, Netmums and UK Business Labs.
4. 4. Busiest day for social networking about employment issues are Thursdays and Fridays.
5. 5. Social Networks are now more popular than personal emails.
6. 6. The term ‘human resources’ has been used only 13,000 times on Twitter "HR" has been used a staggering 323,000 times in the life of Twitter.

For trends in UK Social Media usage, the map below comes from Are you LinkedIn in London or Bebo in Belfast? and show the regionalisation of various social networks, as of September 2009. With Facebook and Twitter’s growth leveling off, and Bebo and MySpace continuing to lose audience it will be very interesting to run these again in 2010.

Possible questions for further research is how do other functions compare to HR and what are the trends in other countries?

This is a summary of an original article published by Strategic HR Review.

In an economic downturn and subsequent recovery, change is inevitable for every organization. Effective Change Management is often a mix of the strategic and the practical. It can encompass everything from ensuring strategies are aligned, to making sure your weekly bulletin goes out on time, on message and to the right people. From a HR perspective, it is important to provide leadership and guidance by example and the following actions can help HR executives to lead the way during the change process.

1. Define and deliver your HR strategy

Make sure that HR strategy is consistent with the overall business strategy, and where necessary provide input and ideas into the overall business strategy. Make sure you achieve buy-in from key stakeholders. This can be achieved by clearly outlining your proposed improvements and delivering on project ideas early on. Part of aligning HR strategy with the overall business strategy will be achieved by sharpening your HR operating model and asking how each HR role will support your organization in the next 12 months. You will be better able to respond quickly to organizational changes with better HR systems, more effective processes and better aligned capabilities in place. This allows HR to deal with the next new change more effectively.

2. Understand HR cost drivers

It is vital to know what drives HR costs. If you know your key performance metrics and what has an effect on them, you can quickly demonstrate that you understand the cost, service and risk implications of any proposed organizational changes on your own department. A good grasp of the cost implications of strategic decisions and the analysis to back it up – really helps when it comes to making changes. By conducting an assessment of the HR department, you get a better understanding of your internal benchmarks. A key metric for HR to understand is the HR “Cost to Serve”of each employee, including staff, systems and third parties. This can vary widely between businesses and geographies and it is important to know why.

3. Take a lead on sourcing options

Take the outsourcing decision to your board – do not let the board take it to you. Be proactive and do the research into how outsourcing could benefit your department (see article Top 5 Benefits of HR Outsourcing)and bring about positive change, as well as cost-savings. Show that you have been actively looking at alternative ways to provide better and more cost-effective HR services in payroll, IT, recruitment, training, HR administration and benefits. Develop your own “build or buy” criteria to help gradually improve HR services. Demonstrate that your business case takes into account the benefits of moving from fixed cost to a more variable cost (that will help in the downturn and the subsequent upturn).

4. Lead by example

There is a balancing act that good HR directors need to master. Often, HR directors are so outwardly focused on supporting the organization that they can neglect the day-to-day workings of their own department. When aligning HR strategy to the wider business strategy, HR directors need to focus on the internal working of the HR department, and most importantly, the people within the HR department. Show leadership through developing your talented team members, and use this as your core team to lead change. Retention strategies start at home, so show the board what you are doing to keep and develop your most talented team members. Be innovative. The organization will look to the HR department to lead on this – secondments, project roles and recognizing excellent service are all initiatives that can inspire people within the organization.

5. Implement change decisively and calmly

All executives in the organization must demonstrate leadership by managing change in a calm and decisive way. HR can stop the organization making “knee-jerk” reactions – more than ever, this is the time to make the right decisions for your organization. Implement changes calmly, effectively and consistently.

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.

Glass Bead Consulting announce ‘HR Transformation Workshop’
Institute of Directors, London – March 5th 2009

Glass Bead Consulting have announced an advanced HR Transformation workshop designed to give HR Executives a headstart in transforming the HR function. The one day course will be held at the Institute of Directors, Pall Mall, London.
Click here for more details about the course and how to book.

Glass Bead Consulting announce ‘HR Outsourcing Workshop’
Institute of Directors, London – March 31st 2009

Glass Bead Consulting have announced an HR Outsourcing Workshop ‘Delivering the benefits and managing the risks’ – a workshop designed to give an overview of what HR outsourcing can do for your organisation. The one day course will be held at the Institute of Directors, Pall Mall, London.
Click here for more details about the course and how to book.

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