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BLOOM &WALLACE
Presented by:
Naomi Lee BloomManaging Partner
BLOOM & WALLACE13300-56 So. Cleveland Ave. Ste 404
Fort Myers, Florida 33907(239) 454-7305 phone (239) 454-9187 FAX
Twitter @InFullBloomUS Blog http://InFullBloom.US
Poirot’s Order And Method:Making The Business Case For
HR Technology
HR Technology EuropeRAI Amsterdam 10/24/2013 -- “Starter Kit”
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HRM Drives Business Outcomes
Achieving agreed business or missionoutcomes is the primary focus of everyorganization.
Human resource management (HRM)contributes to achieving agreed business ormission outcomes via workforce capabilities,performance, engagement, intellectualcapital, and professional networks -- andthese are the only sustainable source ofcompetitive advantage.
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HRM Drives Business Outcomes
HRM is much more about what the workforceand org leaders do than about what HR does;ideally HR establishes HRM strategies,implements best practice processes andbusiness rules, and minimizes compliancecosts and issues.
HRM isn’t easy -- it’s regulated heavily,constrained by local custom/org culture, hasboth broad and complex data and processes,and goes unnoticed unless there are problems.
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HRM Drives Business Outcomes
To design and deliver effective HRM -- anddesired org outcomes -- we need to know whatHRM policies/practices/etc. will produce/drivewhat outcomes, at what levels, and at whatcost, i.e. we must use predictive analytics.
The burden of proof rests on us to draw thatline of sight from the specifics of HRM to thoseagreed org outcomes, and then to deliverreliably against believable metrics.
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HRM Drives Business Outcomes
Every investment in HRM -- and in HRMtechnology -- must be predicated on drivingbusiness or mission outcomes and have abusiness case that, in addition to achievingdesired efficiencies, demonstrates the line ofsight to those outcomes.
Human resource management is what weenvision, shape, tech-enable and lead!
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HRM Drives Business Outcomes
Effective business strategy and planning area necessary but not sufficient condition forachieving the desired business or missionoutcomes.
The best strategy and planning are only aseffective as is their execution -- and ourworkforce, at every level, must execute wellagainst a strategy, implementation tactics,and goals which they understand and towhich they subscribe.
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HRM Drives Business Outcomes
Execution is all about workforce capabilities,performance, engagement, intellectualcapital, and professional networks -- soexecution is all about HRM.
Information, especially actionable analytics,and HR technology, including mobile, socialand global capabilities, can be huge enablersand amplifiers of HRM and workforceperformance -- or, when they fail, they canblock all progress.
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Drawing a line of sight from organizationalobjectives and goals to needed businessoutcomes and on to what HRM and theworkforce must achieve is the essentialstarting point for:
Choosing and executing investments in HRM, inthe HRM delivery system, and in HR technology;and
Making the business case for thoseinvestments.
HRM Drives Business Outcomes
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VISION
STRATEGIES
BUSINESSOUTCOMES
HRM STRATEGIES
HRM OUTCOMES
HRMIMPLICATIONS/
DESIGN(S)
HRMDSIMPLICATIONS/
DESIGN(S
VISION
STRATEGIES
BUSINESSOUTCOMES
HRM STRATEGIES
HRM OUTCOMES
HRMIMPLICATIONS/
DESIGN(S)
VISION
STRATEGIES
BUSINESSOUTCOMES
HRM STRATEGIES
HRM OUTCOMES
HRMIMPLICATIONS/
DESIGN(S)
HRMDSIMPLICATIONS/
DESIGN(S)“Follow TheYellow BrickRoad” to greatorganizationaloutcomes.
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Organizational Vision:
• What is the organization's raison d'etre?
• What is the organization's value proposition to itscustomers, shareholders and employees?
• What does the organization want to do and be?
• Why should shareholders, customers, employees,etc. invest their resources in the organization?
• By what measures and target values over what timeperiod will we recognize progress toward this vision?
VISION
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Organizational Strategies:
• What must the organization do well to achieve itsvision? To meet stakeholder expectations?
• By what strategies will the organization drivecustomer satisfaction, shareholder value andworkforce effectiveness?
• What strategies are needed to overcome specificobstacles to achieving the vision?
• What strategies are needed to address specificissues that the organization and/or its industry faces?
STRATEGIES
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Organizational Outcomes:
• How will the organization recognize, via objectivemeasures and target values within a defined timeframe, to what extent its organizational businessstrategies are succeeding and needed results are beingachieved?
• By what measures and target values within a definedtime frame will the organization recognize progresstoward its vision and/or problem areas overcome?
BUSINESSOUTCOMES
Don’t have all of this that youneed? Consider a workshopusing next slides …
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Changing Organizational Context
Our organizations are subject to:
Fierce, global competition -- for customers,competencies, capital, technology, suppliers,ideas, intellectual property, market and mindshare, and influence; and
Growing customer information access anddecision-making sophistication -- abouttheir business needs, their product andservice choices, and the financial implicationsof both.
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Changing Organizational Context
Our organizations are subject to:
Rapid changes in technology -- withimproved availability, capability, ease of use,affordability, but also with greater complexityof choices, integration and management; and
Nearly pervasive information andtechnology -- from embedded systems tomanufacturing robotics, social collaboration,mobile ubiquity, analytics, and everyteenager’s mastery of the basics.
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Changing Organizational Context
Our organizations are subject to:
Changing business models andinvestment strategies as work is digitizedand moves to where it can be done with thebest combination of cost, quality, speed andrisk; and
Tremendous growth and availability ofknowledge -- and with much shorter cycletimes for its creation, distribution, vetting andobsolescence.
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Changing Organizational Context
Our organizations are subject to:
Pent-up demand for scarce competencies-- and those workers in greatest demand votewith their feet! and
Increasing regulatory coverage andenforcement -- of environmental, trade,labor, security and financial activities -- moreso in the developed economies but perkingalong in the emerging ones.
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Our organizations are subject to:
Enormous pressure to do the right thingsfaster and better and with fewer, lessexpensive resources; and
Diverse workforces, including bothemployees and non-employee workers, fourgenerations, BYOD-enabled, and withexpectations set by consumer technology.
Changing Organizational Context
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Changing Organizational Strategies
Successful, growth-oriented and cohesiveorganizations:
Comply with but are not driven to poorstrategies or decisions by regulations or laborcontracts; and
Achieve significant economies of scale, in-house and through outsourcing andpartnerships, without bureaucracy, and withoutloss of flexibility, speed, reliability, orsecurity/privacy.
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Changing Organizational Strategies
Successful, growth-oriented and cohesiveorganizations:
Maximize the value of their assets, includingtheir workforce, while partnering to enhancetime-to-market, enter new markets, tap intoexpert providers for essential but non-corecapabilities and, in general, extend their reach.
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Changing Organizational Strategies
Successful, growth-oriented and cohesiveorganizations:
Attract and retain the best possible workforce -- be the “employer of choice” -- and enhancethe productivity, the real effectiveness, of theirworkers, especially those with critical, butoften scarce, competencies and those fillingkey positions; and
Create flexible, adaptable organizationaldesigns and use technology to enable them.
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Changing Organizational Strategies
Successful, growth-oriented and cohesiveorganizations:
Increase their capacity (so speed and range)for change while avoiding change for its ownsake; and
Make the capabilities of their workforce,enabled via information technology andactionable analytics, a differentiating andsubstantial source of sustained leverage andcompetitive advantage.
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Changing Organizational Strategies
Successful, growth-oriented and cohesiveorganizations:
Rethink their business models to leveragesuch key IT-enabled capabilities as masscustomization, disintermediation, cloud,consumerization, gamification, experience-based customer interaction, borderlesscommerce, social collaboration, and all therest of the growing list of disruptor buzzwords.
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HRM Strategies:
• What must HRM (designed and championed by HR)do well to enable the organization to achieve its vision?To deliver agreed organizational outcomes?
• By what HRM strategies will HRM enable theorganizational strategies, i.e. help drive customersatisfaction, shareholder value, and workforceeffectiveness?
HRM STRATEGIES
With or without thatdetour, it’s back to “TheYellow Brick Road.”
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HRM STRATEGIES
HRM Strategies:
• What HRM strategies are needed to overcomespecific obstacles to achieving the organization’svision? To delivering needed outcomes.
• What HRM business strategies are needed toaddress specific issues that the organization faces?To ensure that needed organizational outcomes areachieved?
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HRM Business Outcomes:
• How will the organization recognize, via objectivemeasures and target values within a defined timeframe, to what extent its HRM strategies aresucceeding and achieving the intended results?
• By what measures and target values within adefined time frame will the organization's progresstoward its HRM strategies and results be validatedand/or problem areas revealed?
HRM OUTCOMES
Don’t have all of this that youneed? Consider a workshopusing next slides …
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HRM Strategies
Please be very careful here to separate theconcept of the HRM business processes fromthe responsibilities of the HR function.
There are many workable ways in which anorganization may organize itself and assignresponsibility for the definition andachievement of HRM strategies, HRMoutcomes, and the HRMDS (design throughimplementation and ongoing support).
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HRM Strategies
What's important is to recognize that the HRfunction does not have responsibility for everyaspect of HRM -- everyone has a role to play.
However, it can be argued that HR shouldprovide leadership to every aspect, includingthe setting of HRM strategies, the design ofHRM policies and programs, the definitionand accomplishment of HRM outcomes, andthe design through implementation andsupport of the enabling HRMDS.
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Sorting out which HRMstrategies will deliverwhich business outcomestakes a great deal ofknowledge and a little bitof magic.
One way ofinvoking thatmagic is to run aworkshop that goesfrom the issues youface to the strategiesthat address them.
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Naomi’s Hierarchy Of HRM Issues
Operational HRM efficiency -- doing more ofwhat’s required in HRM with fewer resources;
Operational HRM effectiveness -- doing theright HRM “things” well;
Organizational effectiveness -- increasing thequantity and quality of what the overallorganization achieves; and
Organizational success -- increasing the valueof what the overall organization achieves.
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HRM Operational Efficiency Issues
We must do more of what’s required inHRM with fewer resources:
Control unit labor and HRM costs whilemeeting rising organizational needs andworker expectations; and
Minimize the impact of regulatory complianceon organizational costs, outcomes, andflexibility.
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HRM Operational Efficiency Issues
We must do more of what’s required inHRM with fewer resources:
Control unit HRMDS costs and improveservice delivery quality, intimacy, timelinessand agility; and
Reduce the complexity of dealing with andimprove the responsiveness of the HRfunction.
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HRM Operational Efficiency Issues
We must do more of what’s required inHRM with fewer resources:
Assimilate acquisitions/divestitures/mergersefficiently, e.g. with the least loss ofproductivity of the in-place workforce and thefastest time-to-productivity of the acquiredworkforce; and
Manage effectively a workforce that isincreasingly not just employees but whichincludes every flavor of contingent worker.
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HRM Operational Efficiency Issues
We must do more of what’s required inHRM with fewer resources:
Manage effectively a workforce that isincreasingly diverse, mobile, social andglobal.
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HRM Operational Effectiveness Issues
We must do the right HRM “things” well:
Provide managers with accurate, timely,visible and actionable workforce data, HRMmetrics/analytics, and expertise as “point ofsale” embedded intelligence -- and deliverthese capabilities to that increasingly mobile,social, global and non-employee workforce.
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We must do the right HRM “things” well:
Increase the self-sufficiency and productivityof the entire workforce, to include deliveringjust-in-time training and related “getting thework done” tools to that same highly mobile,social, global and not just employeeworkforce.
HRM Operational Effectiveness Issues
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We must do the right HRM “things” well:
Manage a workforce that is increasinglytelecommuting, working flexible hours, takingparental leave, past the usual retirement age,culturally and generationally diverse, spreadacross many time zones, speaking manylanguages, working under very different levelsof infrastructural development, etc.
HRM Operational Effectiveness Issues
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We must do the right HRM “things” well:
Deploy workers in the fastest possible time, atthe lowest possible cost, and with thegreatest possible level of engagement,productivity and effectiveness to the roles inwhich they can add the greatest value to theorganization.
HRM Operational Effectiveness Issues
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HRM Organizational Effectiveness Issues
We must help increase the quantity andquality of what the overall organizationachieves:
Attract and retain the best workers for ourspecific needs, both as to competencies andcultural fit, at the right labor costs; and
Improve durably the match between workercompetencies and the demands of the work.
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HRM Organizational Effectiveness Issues
We must help increase the quantity andquality of what the overall organizationachieves:
Increase/sustain the integrity, loyalty,engagement, focus and, most importantly, thebusiness results of workers.
Create and sustain the flexible organizationaldesigns needed to seize and deliver onbusiness opportunities.
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HRM Organizational Success Issues
We must help increase the value of whatour organizations achieve by ensuringthat we can:
Collaborate beyond the organization’s “walls”,with suppliers, customers, communities,regulators, labor organizations, educationaland research institutions, free-agent workers,etc.
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HRM Organizational Success Issues
We must help increase the value of whatour organizations achieve by ensuringthat we can:
Institutionalize good practices in continuouslearning, innovation, leadership development,collaboration, and change management; and
Use competencies to drive/optimize all HRMand work processes.
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HRM Organizational Success Issues
We must help increase the value of whatour organizations achieve by ensuringthat we can:
Scale (or shrink) the organization quickly interms of size, geographic dispersion, businessdiversity and/or workforce diversity in responseto changing business requirements.
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HRM Organizational Success Issues
We must help increase the value of whatour organizations achieve by ensuringthat we can:
Create deep and broad leadership capabilities,i.e. bench strength, across all the relevantgeographies and competencies; and
Deploy workers quickly to their most profitableuses.
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Not All HRM DeliversEqual Value In Terms Of
Driving BusinessOutcomes
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Figuring out which aspectsof HRM produce the biggestpositive impact on businessoutcomes takes a great dealof knowledge and a littlebit of magic.
One way ofinvoking thatmagic is to use thestrategic HRMdomain model tosee what’s mostimportant for you.
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Strategic HRM makes a difference where itmatters, by increasing revenues and/or profitsmaterially -- everything else is administrativeHRM.
Strategic HRM makes a difference via theeffective and efficient performance ofindividuals, teams and other organizationalgroupings.
Strategic HRM is directed at improvingorganizational performance by improvingindividual and workforce performance.
Strategic HRM Is What Matters!
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Strategic HRM = TalentManagement Plus
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KSAOC: A specific, identifiable, definableand measurable body of knowledge, skill,ability and/or other deployment-relatedcharacteristic, including attitude,behavior, work condition preference,physical ability, personal networks/networking, whether inherent or subjectto development, which a human resourcemay possess and which is necessary foror material to the performance of one ormore relevant duties and responsibilities.KSAOCs must always be defined in theirbusiness context.
Strategic HRM Is What Matters!
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KSAOC
1.0Manage The Organizational
Structure
7.0Lead The
Workforce
6.0Manage Relations With
Labor Organizations
5.0Manage The Work
Environment
4.0Compensate Employees
3.0Develop The Workforce
2.0Staff The Organizational
Structure
KSAOCKSAOC
1.0Manage The Organizational
Structure
1.0Manage The Organizational
Structure
7.0Lead The
Workforce
7.0Lead The
Workforce
6.0Manage Relations With
Labor Organizations
6.0Manage Relations With
Labor Organizations
5.0Manage The Work
Environment
5.0Manage The Work
Environment
4.0Compensate Employees
4.0Compensate Employees
3.0Develop The Workforce
3.0Develop The Workforce
2.0Staff The Organizational
Structure
2.0Staff The Organizational
Structure
Strategic HRM Is What Matters!
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KSAOC
Current/future needs for …Regulatory/contractual needs for …Current/future costs of …Jobs/positions/teams must have …Redesign work around …Outsource to get results of ...Plan for networks to access …
1.0Manage The Organizational Structure
Strategic HRM Is What Matters!
2.0
3.0
4.05.0
6.0
7.0
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Acquisition/deployment strategies for …Applicant pool of and sourcing for …Market value of …Acquisition/deployment of …Onboarding and offboarding of …Testing and assessment for ...Expat/repat of …Use networks to generate …
2.0Staff The Organizational Structure
Strategic HRM Is What Matters!
KSAOC
1.0
3.0
4.05.0
6.0
7.0
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Development strategies for …Record development of …Test development outcomes for ...Develop products/events which impart …Deliver products/events which impart …Use networks to impart …
3.0Develop The Workforce
Strategic HRM Is What Matters!
KSAOC
2.0
4.05.0
6.0
7.0
1.0
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Compensate* to acquire/retain …Compensate to protect …Compensate to unleash …Compensate to reward …Compensate to ensure development of …Use networks to benchmark …* where total compensation includes
benefits
4.0Compensate Employees
Strategic HRM Is What Matters!
KSAOC
2.0
3.0
5.0
6.0
7.0
1.0
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Eliminate barriers to use of …Eliminate barriers to acquisition/deployment of …Protect … from accident and injuryProvide resources to support ...Create desirable environment to attract/retain …Foster networks to unleash …
5.0Manage The Work Environment
KSAOC
2.0
3.0
4.0
6.0
7.0
1.0
Strategic HRM Is What Matters!
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Manage labor relations to obtain and unleash …Avoid work actions which remove ...Negotiate with unions which provide ...Negotiate labor agreements which unleash …Tailor networks across labor organizations toobtain …
6.0Manage Relations With Labor
OrganizationsKSAOC
2.0
3.0
4.05.0
7.0
1.0
Strategic HRM Is What Matters!
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Create/engage networks of …Schedule availability of ...Equip ... to performMentor … to performDevelopment plans for …Performance plans for …Assessments of …Assign work to ...
7.0Lead The Workforce
KSAOC
2.0
3.0
4.05.0
6.0
1.0
Strategic HRM Is What Matters!
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Transformational Design(s) for:
• HRM programs, practices, and plans;
• HRM data, information, metrics, analytics,forecasts, and knowledge;
• HRM business rules, small p and big Pprocesses; and
• HR capabilities, competencies and operatingmodels.
HRMIMPLICATIONS/
DESIGN(S)
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Figuring out what HRMdelivery system design isneeded to delivertransformational HRMtakes a great deal ofknowledge and a littlemagic. One way of invoking
that magic is to useconsider the deliverysystem you’d designif you weren’tconstrained by theone you have.
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HRM Delivery System Implications/Design(s):
• Insights re: customer, platform and operating modelviews;
• Insights re: architectural preferences;
• Insights re: cost model and business case for future state;
• Insights re: implementation priorities and tactics; and
• Lots of valuable scenarios with which to explore, compareand select technology and deployment alternatives.
HRMDSIMPLICATIONS/
DESIGN(S)
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Now you need reallyexpert knowledge and aton of magic, to sortthrough your tech optionsand select just the rightcombination -- and thento implement them.
The best way toinvoke really bigmagic is tooverweight yourteam withknowledge andexperience.
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HR Technology Implications/Design(s):
• Insights re: user experience, including social, mobile,global, location-based, actionable analytics, gamification…;
• Insights re: object model and architectural preferences;
• Insights re: deployment, integration, and ongoing support;
• Insights re: implementation priorities and tactics; and
• Lots more valuable scenarios with which to explore,compare and select technology alternatives.
HR TECHIMPLICATIONS/
DESIGN(S)
So What’s An HR Leader To Do?
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How and where do you begin this journey?
Gather all of the organizational strategy, current stateHRM and HRMDS information you can find.
Read it all through the lens of strategic HRM, lookingfor the specific impacts on business strategies andoutcomes that must come from well-executed strategicHRM.
See the patterns in those strategic HRM requirementsand design HRM policies etc. to deliver them.
Update your HRM policies, practices, and operationsto support converged HRM and converged HRtechnology.
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How and where do you begin this journey?
Inventory your current HRMDS, including all the“informal” components:
What software are you using -- brand/module/release –and what is it costing, including both out-of-pocket andopportunity costs;
What outsourcing are you doing -- provider/scope ofservice -- and what is it costing, including both out-of-pocket and opportunity costs; and
What spreadsheets, Word documents, privatedatabases, and even paper files (gulp!) are youdepending on for some of your HRM processes?
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How and where do you begin this journey?
Learn all you can about the differences between poor,good and great HR technology, and about what themarket offers -- continuous learning needed here.
Clean up your HRM data -- including organizationdata, people data, competency models, business rules,and data granularity -- to support converged HRM andconverged HR technology.
Insist upon detailed product roadmaps, with dates,against which to evaluate vendors and providers forevidence that they’re on top of converged HRM andconverged HR technology -- and do probe for theirstrategies around all eight convergence themes.
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How and where do you begin this journey?
Determine what components of your current HRMDSplatform are serving you well, which are not, whatneeds to be upgraded/enhanced/replaced, what canremain as it is (but keep on eye on this as allcomponents “age”).
Design your HRMDS to deliver those strategic HRMrequirements and then make your HR technologydecisions.
Be disciplined/methodical in evaluating potentialHRMDS platform component changes, or changes inpeople and process, and don’t be a victim of vendor“promises.”
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How and where do you begin this journey?
Weed out/de-emphasize vendors and providers whocan’t take you to a converged future -- and run awayfrom those that don’t even know that the convergedfuture is coming.
Do not judge the needs of tomorrow’s workforce orHRM by yesterday’s standards, but do judge your ownresponsibilities and their results in terms of drivingbusiness outcomes.
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Naomi Lee BloomManaging Partner
BLOOM & WALLACE13300-56 So. Cleveland Ave. Ste 404
Fort Myers, Florida 33907(239) 454-7305 phone (239) 454-9187 FAX
[email protected] @InFullBloomUS Blog http://InFullBloom.US