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1 Copyright © 2015 Deloitte Development LLC. All rights reserved.
High-Impact HR
Operating Model
June 2015
HR Strategy & Operations
Deep Dive
2 Copyright © 2015 Deloitte Development LLC. All rights reserved.
Introduction
HR Strategy &
Operations
Deep Dive
Impact and Value
• Build upon the High-Impact Operating Model POV and enhance an organization’s ability to plan
for, operationalize, and realize substantial value from its HR Strategy & Operations Portfolio
Solutions
• Provide a framework to apply the High-Impact HR Operating Model design principles to the HR
Strategy & Operations portfolio for design, delivery, and measurement of all initiatives
HR Strategy &
Operations
Deep Dive Objectives
• Supplement the High-Impact HR Operating Model with a deeper analysis of how organizations
can plan, design, deliver, and measure High-Impact HR Strategy & Operations Portfolio Solutions
• Illustrate the primary activities performed by each component of the High-Impact HR Operating
Model in delivering HR Strategy & Operations services via the three high-level process steps and
seven HR Strategy & Operations Portfolio Solutions, as well as how the Service Delivery
Channels can interact and complement each other
• Serve as the conduit between the High-Impact HR Operating Model PoV and HR Strategy &
Operations functional Work Splits
• Provide a starting point for conversations about how to operationalize the HR Strategy &
Operations Portfolio Solutions processes within the High-Impact HR Operating Model
Deloitte’s High-Impact HR Operating Model provides an innovative HR Service Delivery approach based on Deloitte’s extensive
client experience and leading practice research and applications. The model provides a new way to articulate the roles and
relationships within HR and beyond to help increase business impact with improved efficiency and effectiveness. The HR Strategy &
Operations Deep Dive expands on this work, providing pertinent details around the “what,” “why,” and “how” of HR Strategy &
Operations Service Delivery.
3 Copyright © 2015 Deloitte Development LLC. All rights reserved.
Critical HR Strategy & Ops Imperatives and Trends
20%Of business executives
believe HR is adequately
planning for their company’s
future talent needs240%
Of new CHROs
come from the
business, not HR228%Of business executives
believe HR is highly
efficient2
The Burning Platform for Reinventing Human Resources2
Companies are
demanding
greater HR
innovation
No improvement
in recent
HR YoY
performance
The need to
transition from
Service Provider to
Talent Enabler
The need to shift
from HR Generalists
to Business
Consultants
Gaps and opportunities for HR to drive sustainable business impact
Start with foundation
inclusive of analytics
and empowerment
culture in HR
Build structure that
optimizes business
embedded design and
delivery while
leveraging HR
specialist expertise
Mirror business
strategy
Coordinate efforts
across the
organization –
frontline decision
making and
information sharing
Leverage principles
1 – 4 to optimize
business leadership,
manager people skills
and HR performance
5Essential High-
Impact HR
Design Principles1
The High-Impact HR Strategy & Operations Framework provides the approach for exploiting
the 5 Essential High-Impact HR Design Principles, thus establishing the desired business
impact of HR Strategy & Operations Service Delivery is realized
1 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - High-Impact HR: Building Organizational Performance from the Ground Up. Mallon, D.,
Shellenback, K., Bersin, J., & Kowske, B. 2014.
2 Deloitte University Press - Global Human Capital Trends 2015:: Leading in the New World of Work. 2015.
The opportunity to
simplify work by
reducing technology
and process complexity
4 Copyright © 2015 Deloitte Development LLC. All rights reserved.
Aligns strategy and operations to deliver HR services to the business
High-Impact HR Strategy & Operations Components
HR Strategy & Operations sets,
aligns, and enables all functional HR
plans with the enterprise business
strategies and goals to drive
business impact
Drives the “HR Strategy &
Operations Agenda” and enables
alignment, culture, and High-Impact
performance through the entire HR
Suite of Offerings1
High-Impact
HR Operating Model
HR Strategy & Operations
Service Delivery Portfolio
The “High-Impact HR Strategy & Operations Framework” is operationalized through the seven HR
Strategy & Operations Portfolio Solutions and three high-level processes
Our disciplined and agile
methodology incorporates the
Assessment, Design, Deployment
and Measurement of solutions that
enable critical business imperatives
HR Strategy & Operations
High-Level Process Steps
1 Deloitte - The High-Impact HR Operating Model. 2014.
Assess
Current State and
Business Needs1
Design Strategy,
Roadmaps,
and Detailed Plans2
Deploy and
Measure Impact3
5 Copyright © 2015 Deloitte Development LLC. All rights reserved.
High-Impact HR Strategy & Ops Service DeliveryHow S&O delivers services through the High-Impact HR Operating Model
Each delivery role plays a unique and critical part in planning, delivery, and measurement of
critical HR Strategy & Ops Portfolio Solutions that support business imperatives
• Request, obtain and analyze
Current State Enterprise HR Data
• Conduct Voice of the Customer
(VoC) Surveys and analyze data
to inform plans
• Analyze Current State HR
Technology / Systems
• Conduct Work Activity and
Detailed Process Analyses
• Conduct Current and Future
State HR Maturity Assessment
• Develop HR Current State
Assessment Summary and
Recommendations
• Identify and align with business
needs
• Share Knowledge / Leading
Practices and Develop Guiding
Principles
• Develop the HR Transformation
Vision, Charter, Business Case
and Roadmap
• Design Future State HR
Operating Model
• Align HR Roles and
Organization
• Design and Size Future State
HR Organization
• Align HR Job Profiles
• Develop Customer Experience
Strategy Materials and Tools
• Analyze Future State
Technology / Systems
• Baseline enterprise HR Metrics
• Partner with the business and
Organization Effectiveness /
Change Management (OE / CM)
teams to execute HR
Transformation Roadmap per plan
• Implement and measure
supporting OE / CM initiatives
• Measure post-deployment impact
and make adjustments as
required
• Conduct post-deployment Voice of
the Customer (VoC) Surveys,
compare to prior results, and
identify and implement any
remediations
1 Deloitte - HRT Strategy & Planning Toolkit V04. 2014.
Assess
Current State and
Business Needs1
1 Design Strategy, Roadmaps,
and Detailed Plans12 Deploy and
Measure Impact13
6 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR StrategyHR Reporting
& AnalyticsM&A
HR Tech
Strategies &
Systems
HR Vendor
ManagementHR PMO
HR
Governance
HR
Operational
Services
Org.
Effectiveness
& Change
Mgmt.
•Overarching
plans include HR
functional
alignment and
perpetual input
from the
business
•Confirm
business impact
is optimized by
consistently
investing in
employee
capability
development and
deploying
resources based
on business
needs
•Stays well ahead
of HR and
business trends
and incorporates
into leading
practice
execution to
deepen
relationships with
the business and
maximize impact
• Collaborate with
Business HR to
deliver data-
driven people
and
organizational
insights for
decision making1
• Leverage
multiple internal
and external
data feeds and
partner with the
business to
define workforce
requirements to
meet strategic
business needs1
• Engage with HR
PMO to measure
benefits
realization and
value creation5
• Implement HR
scorecard that
links HR KPIs to
overall
organization
metrics1
• Collectively
assess and build
M&A strategy
and plans
• Align as a unified
team and
present a
common vision
from Day 1 (post
close)3
• Support creation
of predictable
employee
experience to
retain bodies/
hearts/minds of
critical talent3
• Enable
transformative
leaders to
execute talent
engagement
strategies3
• Develop clear
career paths for
advancement in
the new
organization to
build employee
commitment/
enthusiasm3
• Integrated, near-
paperless HR
technology
landscape that
includes
enabling
technology1
• Technology is
accessible
globally to
initiate
transactions /
execute workflow
/ view reporting
data1
• Functionality
available across
multiple
platforms,
including mobile
• Enhanced HR
portal broad
functionality for
Active, Future,
and Former
Employees1
• Consistent,
broad user
experience
including social
networking
inside the
enterprise1
• Effectively
identify
beneficial
activities to
outsource1
• Manage vendors
to achieve
desired balance
of quality and
efficiency
through
collaboration
between
Communities of
Expertise and
Operational
Services1
• Incorporate
feedback from
Business HR
where vendor
services touch
HR Customers1
• Global contracts
with leading
vendors
leverage size
and scope of
services1
• Extend “project
management” to
“results
management”
with a flexible
approach that
adapts to
changing
delivery models
and outcomes
management5
• Document HR
strategic
alignment and
implementation
against
organizational
imperatives5
• Support HR
Governance with
standardized
reporting
procedures and
templates;
monitor
implementation
and progress of
HR KPIs for both
technology and
non-technology
related projects4
• Formal HR
governance
structure clearly
defines roles,
responsibilities,
and
accountabilities1
• Defined process
to assess and
establish
alignment with
HR Strategy,
System, Data
and Process
Change Control,
and Program
Management
across HR
Processes,
Policies and
Enabling Tech-
nologies1
• Structure to
support the
business
across org. and
geographical
boundaries by
using global,
regional, and
country teams
to deliver
differentiated
services2
• Partner with
COEs and
Vendors to
deliver a
seamless and
productive
experience for
customers with
HR needs2
• Partner with
Business HR to
identify
opportunities to
better support
business units,
manager / self-
service and
migrate to
centralized
functions5
• The
Organization
Effectiveness /
Change
Management
(OE / CM)
Function is
centrally
managed and
akin to a “Shared
Service” and
provides
strategic and
tactical support
on all enterprise
and LoB
initiatives
• OE / CM are
leveraged as
internal
consultants
• OE / CM staff
identify and
exploit “Moments
that Matter”
• Culture,
Employee
Engagement,
initiatives are a
strategic priority
High-Impact HR Strategy & Ops Portfolio SolutionsThe HR Maturity Model1 articulates “Market Leading” attributes, establishing the “aspirational vision” for HR Strategy & Operations and
identifies the benchmarks for achieving the highest level of business impact for all HR Strategy & Operations Portfolio Solut ions*
1 Deloitte - HR Maturity Model. 2015.
2 Deloitte - HR Shared Services: Trends in the Market V02. 2015.
3 Deloitte - High Stakes M&A: 7 Bets that Matter. 2012.
4 Deloitte - Global Organization Design Methodology. 2014.
5 Deloitte - Results Management Office (RMO) Proposal Packet. 2014.
*These are not inclusive of all attributes in the HR Maturity Model. They are intended to provide examples of those in the “Ma rket
Leading” category. There are additional attributes in the maturity categories that are not reflected above.
8 Copyright © 2015 Deloitte Development LLC. All rights reserved.
1 Deloitte University Press - Global Human Capital Trends 2015: Leading in the New World of Work. 2015.
2 Deloitte - 2014 HCM Trend Report. Boudreau, J and Lawler, E. How HR Spends its Time. Center for Effective Organizations, University of
Southern California. 2012.
HR StrategyHR Strategy defines the target state for HR, including the mission, values, priorities, and roadmap in alignment with the
organization’s business goals. The HR Strategy cascades into each functional area and guides the development of strategic ini tiatives,
programs, policies, and roles within the HR organization, ensuring that HR is poised to deliver against the business’s future needs.
Define the HR Target State
• Define the HR mission, values, and align
the HR Strategy with the business and
employee workforce strategies
• Integrate with business strategy by
implementing people solutions that support
business-specific imperatives
• Design the HR organization to deliver
solutions to the business, with a focus on
consulting and service delivery
• Define baseline success criteria
• Develop business case for investment in
programs and services
• Own the HR workforce plan
Prioritize, Execute & Evaluate
• CoEs and Business HR brokers the right
HR strategy and solution, provides
knowledge of HR services and solutions to
the business, and establishes the effective
business execution of HR practices
• HR Operational Services delivers HR
services from centralized functions (global /
regional / country level) to support the
business and individual employees
• Measure and communicate results
• Identify and exploit CI opportunities
Develop HR Roadmap & Projects
• Identify, prioritize, and sequence the
specific HR projects that will support the
overarching HR Strategy
• Communities of Expertise create
sustainable and scalable enterprise-wide
HR programs, processes, and practices
that enable business- and people-strategy
imperatives
• Allocate budgets and define tactical
activities for project and ongoing programs
• Develop and implement measurement
strategies
Key Activities and Interactions
• The discrete business functions’ strategies and overarching business strategy should serve as the critical input for the HR Strategy, which in turn
serves as the key input for all tactical HR plans
• Invite the business to provide input into developing the HR Strategy. Also include functional stakeholders from Supply Chain, Legal, IT, Finance,
and Real Estate
• Secure commitment with the overarching HR Organization and promote collaboration / shared ownership of the HR Strategy and projects for the
respective functional areas and enterprise. Measure how employee and business performance is enabled by the HR Strategy
Business Drivers and Leading Practices
70%Of organizations indicated
the need to simplify work is
“important”172%
Of organizations report
inefficient HR operating
models241%Of executives report HR is
“weak” in preparing staff to
deliver programs aligned with
business needs1
9 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR Reporting & Workforce AnalyticsHR Reporting & Workforce Analytics is the process of generating business insights by combining, analyzing, and providing
stores of structured/unstructured data and external sources via predictive analytics (rather than Operational Reporting – which is
executed by Specialized Services), thus enabling business executives to make data-driven decisions.
CoE
• Develop and implement overarching HR
Analytics Strategy
• Collaborate with Business HR to deliver
data-driven people and organizational
insights for decision making
• Leverage multiple data feeds to define
workforce gaps to manage supply &
demand requirements (HR owns the
planning process and the business owns
the scenarios / plans
• Provide insight into all Talent programs
• Combine Performance Management
analytics to recruitment and retention to
provide focus on workforce planning
HR Operational Services
• Implement data integrity and data
governance protocols to establish complete,
accurate and reliable data stores
(Specialized Services)
• Support complex data changes (e.g.,
restructure, organization modeling, plant
closing, new legal entity) to facilitate HR
reporting and workforce analytics
(Specialized Services)
• Provide data to support reporting / analytics
initiatives
• Generate ad-hoc management reports to
support special projects, M&A, etc., inform
workforce reporting and analytics
Business HR
• Review workforce / business data to
diagnose and create solutions for workforce
business problems
• Leverage performance data to support the
business in identifying emerging leaders &
critical talent who meet high-success
factors, to develop them for succession
planning
• Combine data for sourcing, recruiting, and
monitoring employment brand to assess
factors such as employee engagement and
talent flight risks
• Build internal capability to interpret data to
develop actionable business insights
Delivery Channels, Key Activities and Interactions
Executive Leadership: Sets the vision, strategic direction, and HR S&O Agenda
• Cognitive Analytics is the application of machine learning, natural language processing, and an advanced analytics structure which enhance human
decisions2. Still in very early stages, but the convergence of machine and human intelligence could have wide-ranging implications for HR and the
increasing trend of “Machines as Talent”1
• 80% of HR professionals score themselves low in their ability to analyze data, which underscores the importance of and opportunity to develop and
execute HR Capabilities in these areas1
• Companies using analytics in decision-making are 2.2X more likely to outperform their competitors2
Business Drivers and Leading Practices
8.4%Of executives report
possessing a “strong”
HR Analytics capability169%
Of executives report a “weak”
HR capability in linking data to
workforce performance –
increase of 3% from 20141
1 Deloitte University Press - Global Human Capital Trends 2015: Leading in the New World of Work. 2015.
2 Deloitte - Inside Analytics: Innovating Managed Analytics for our Clients. Lloyd, B., & Selvaraj, S. 2014.
61%Of executives report a
“weak” HR capability in
linking data to business
performance1
10 Copyright © 2015 Deloitte Development LLC. All rights reserved.
Mergers & AcquisitionsMergers & Acquisitions is a function that is heavily reliant on HR to establish a successful integration. Executive HR and
HR Functional Leadership must drive a shared vision / intended outcomes to minimize business disruption before, during,
and after deal close.
• The top factor for integration success is Executive Leadership Support, while involving management from both sides and developing an integration
plan are the second and third top factors for integration success, respectively1
• HR Due Diligence is a critical enabler – coaching both teams on unique regulatory/compliance requirements can confirm no HR violations occur1
• Multiple risks stemming from mismatched organizational structures and processes can impede success during integration processes1
• The integration plan should embrace Change Management initiatives, harmonizing incentives, and meshing core processes1
Business Drivers and Leading Practices
30%Of executives indicated
that the cultural alignment
was ineffective159%
Of executives indicated the
new operating model
redesign was effective167%
Of executives indicated
the new organizational
redesign was effective1
1 Deloitte - Integration Report 2015: Putting the pieces together. 2015.
2 Deloitte - Global M&A HR Playbook. 2014.
Overarching HR M&A Approach
• “Adopt and go” (leverage existing talent,
work processes, and facilities whenever
possible) and connect talent to promote
inter-organization collaboration
• Apply a standard philosophy to all HR
programs, systems and services
• Align processes to transition from a portfolio
of operating units to being “One-Company”,
(unless there is a holding company
structure) with shared values, goals, and
operating models
• Align the HR integration strategy aligns with
the overall deal integration strategy and
data / information alignment
• Work with CoEs to align all programs and
philosophies
HR Functions and Readiness
• Proactively manage stakeholder
expectations, especially about workforce
plans
• Articulate clear messages regularly and
consistently about what is changing and
what remains the same
• Build a positive employee experience
• Define new company culture, values,
programs, systems, and operating models
• Select and retain the best talent to meet the
current / future needs of the org.
• Be thoughtful when making employment
decisions
• Lead leaders through the integration
• Measure HR Readiness
HR PMO
• Focus on the deal’s value drivers when
making all M&A deal decisions
• Dedicate resources with appropriate
capabilities to support M&A activities
• Drive timely decision making at the
appropriate level
• Measure results, assign owners, and hold
people accountable for results
• Define end-state (and a work plan to get
there) before transition back to business-as-
usual operations
• Understand interdependencies and other
key functions' integration strategies and
timelines
• Develop/implement governance model
Global HR M&A Guiding Principles2
11 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR Technology Strategies & SystemsThe HR Technology Strategies & Systems landscape is undergoing a transformative shift from the legacy approaches of
multiple disparate systems that are transactional-focused to highly integrated platforms that are critical HR and business enablers.
20%Of organizations increased
their HR technology spend
in 2014133% Of companies have
10+ HR Systems5 47%Of companies will replace
HR Systems to integrate
and consolidate vendors5
HR Technology Strategy Process2
Our approach provides the means for gathering the full
spectrum of data to develop a comprehensive strategy
The HCM SaaS Market is rapidly maturing6
The transition from on-premises solutions to cloud-based platforms
is driving explosive growth in the SaaS market
Key Activities and Interactions
• A shift in HR software from “systems of record” that automate HR practices to “work management systems” which actually improve people’s
productivity, while also embedding HR practices, is emerging3
• Lower-cost, integrated HRMS systems that replace internal legacy applications, developed entirely on cloud technology drive business impact3,
which also 1) confirms scheduled upgrades and 2) organization can spend less dollars in maintenance and more on development / delivery
• Tightly integrate HR Systems with social networks so that all HR practices can connect to each other3
• Top four criteria for acquiring new software products are 1) improved analytics and reporting, 2) improved end-user experience, 3) integration or
consolidation with other business management products, and 4) cloud-based technology4
Business Drivers and Leading Practices
1 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - Bersin Insights: Is HR earning its keep? Erickson, R. 2015.
2 Deloitte - HR Technology Strategy Approach: Navigating the Evolving Landscape & Developing a Strategic Plan. 2014.
3 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - Predictions for 2015: Redesign the Organization for a Rapidly Changing World. Bersin, J. 2015.
4 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - Investments in Human Capital Management Systems 2014. 2014.
5 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - HR Technology 2015: 10 Big Disruptive Trends. Bersin, J. 2015.
6 Forrester - The Forrester Wave™: SaaS HR Management Systems, Q4 2014. Hamerman, P. 2014.
12 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR Vendor ManagementHR Vendor Management governs the lifecycle of interactions between HR functions and organization(s) that provide services,
including unlocking contract value, ensuring optimal service levels, governing contract compliance and amendments, and
preparing for vendor exit.
Key Activities and Interactions
• Identify and commit appropriate, dedicated resources of vendor-management professionals, who are different from sourcing or procurement
• Manage successful transitions to vendors and press for innovation, productivity and continuous improvement without relying solely on contracts
• Establish common controls, policies and procedures for all vendor management instances
• Establish service integration within multi-vendor operating models
• Conduct effective due diligence to identify types and degrees of potential risks and plan to manage / mitigate third party induced risk
• Develop, utilize, and socialized vendor scorecards / KPI's to assess and communicate vendor performance and value-add
Business Drivers and Leading Practices
43%Of global HR organizations
outsource call center
management451%
Of respondents plan to use
more contingent workers
over the next 3 - 5 years3Agile
Best-of-breed approach lets
organizations tailor sourcing
to their own requirements
1 Deloitte - HR Technology Strategy Approach: Navigating the Evolving Landscape & Developing a Strategic Plan . 2014.
2 Deloitte - Service Management HR Strategy. 2013.
3 Deloitte University Press - Global Human Capital Trends 2015: Leading in the New World of Work. 2015.
4 Deloitte - 2014 Global Outsourcing and Insourcing Survey. 2014.
Vendor Evaluation and Selection Process Steps1
Selecting the most capable partner likely is the most critical step
in enabling a high-impact Vendor Management function.
Vendor Management Lifecycle2
13 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR Program Management OfficeThe HR Program Management Office is deployed to lead and support program / projects in a highly coordinated and
standardized manner. It provides support and guidance for all discrete program / project work streams that cross regions,
departments, geographies, and / or product lines and reports into HR Governance.
Key Activities and Interactions1
• Ideally, the PMO function should serve as an enterprise mechanism to identify, drive, and confirm value creation on all discrete projects
• Successful PMOs serve as an “air traffic controller” with command and control over all program activities, organizing and orchestrating multiple
initiatives, and proactively addressing issues, risks and decisions
• Selection of the right team for each workstream is critical. Workstream Leads must have deep functional knowledge, a proven ability to manage
complex work threads, and relationships / authority within the relevant region / function / delivery team
Business Drivers and Leading Practices2
MeasureDefine and analyze
metrics that are
directly linked to
business objectives
HR PMO Structures
Temporary PMO
Permanent PMO
• Manage a specific, cross
functional project or program
consisting of multiple workstreams
which contribute to an overall goal
• Disband at the end of a specific
project and hand-off remaining
pieces of work to specialists (e.g.
IT vendors, etc.)
Steering Committee
PMO
Project Teams
• Follow reporting lines up to an
executive
• Units within organizations and are
staffed with professional project
managers
• Wrap-up or hand off individual
projects but the structure remains
Executive
Oversight
PMO
ProjectProgram A
ProjectProject
Project
Project
HR PMO Objectives
Tactical Strategic
Plan Development
& Tracking
Develop project plans
and track progress
Cross Team
Coordination
Identify inter-
dependencies
facilitate inter-team
planning / issue
resolution
Risk Management
Resolve issues raised
by project team leaders
or steering committee
Organizational
Engagement
Make the case for
change across silos
Stewardship of
‘The Solution’
Continuously improve the
solution in response to
new information and
prior results
Capability Building
Develop project
management skills within
the PMO and broader
organization to enable
initiative success
Executive
Alignment
Identify
issues requiring
executive input and
coordinate issue
resolution
Resource / Budget
Management
Define project team
structure and
resourcing and
track budget
allocation and
spending
TailorThe degree of monitoring /
oversight to the criticality,
complexity, and urgency of
the program
SimplifyDocumentation,
processes and
approach should
reduce complexity
1 Monitor Deloitte, Project Management Office Toolkit, 2010
2 Deloitte - Financial Service Offering X - Program Management Office (PMO), PMO Playbook, 2009
14 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR GovernanceThe HR Governance framework consists of clearly defined roles, responsibilities, accountabilities, interaction points, decision rights,
escalation paths, service levels, program prioritization criteria and processes, and performance expectations to help drive business
and HR linkage, set priorities for initiatives and teams, and drive alignment of HR leadership, delivery of services, and technology.
4Balanced Scorecard inputs:
Customer, Process,
People, and FinancialEstablish
Clear metrics,
track consistently,
and continuously
improve1
HR Op Model/Governance linkage1 Decision making frameworks1Governance Model components1
Key Activities and Interactions
• HR Governance Guiding Principles include: 1) Align to the HR Strategy, 2) empower professionals, 3) adhere to established standards,
4) understand shared accountability, 5) cooperate and partner, and 6) escalate issues when necessary1
• Implement three HR Governance Sub-Teams – 1. Strategy & Oversight (provides guidance and determines overarching strategy); 2. Operations
(confirms operational excellence and process execution adherence); 3. Relationship (manages relationships and solicits performance feedback)1,
and 4. technology and data
• Develop and execute robust processes for Escalations, Change Control, Issue and Risk Management, Performance Management, and HR
Balanced Scorecard1
• Executive Leadership, CoE, Business HR, and HR Operational Services should all have representation in HR Governance
Business Drivers and Leading Practices
1 Deloitte - HR Governance: HRT Strategy & Planning Toolkit. 2014.
Consultative
Leader seeks advice from group to make
decisions
Consensus
All must agree on decisions
Representative
Sub groups are formed that make
decisions
Democratic
All vote and the majority rules
RACI
Responsible, Accountable,
Consulted, Informed
RAPID
Recommend, Agree, Perform,
Input, Decide
The High-Impact HR Operating Model
provides the primary input into the HR
Governance Model and
operationalizes the HIHR OM
These building blocks enable High-
Impact HR Governance
There are six options for decision-making
strategy that HR leaders can employ
CreateSub-governance structures
that report into one overarching
and standardized governance
process and entity
16 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR Operational Services expands upon the traditional HR Shared Services model to include the delivery of inquiry,
transactional, and specialty services with a deep focus on customer service, operational excellence, and continuous improvement1
HR Operational Services
1 Deloitte - HR Strategy and Planning Toolkit: Critical Needs. 2014.
2 Deloitte - HR Shared Services: Trends in the Market. 2014.
• Advancing technologies are revolutionizing the opportunities for customer interaction and collaboration within HR Operational Services, the HR
organization, and the employee population as a whole - leading to increased benefits for both HR customers and the organization2
• Social technology has enhanced how employees can interact with the business, turning once linear transactions with the HR function into
collaborative immersion – creating a truly customer centric approach2
• 5 Social Collaboration integration points enable the close interaction between HR Shared Services and its customers which drive the transition to a
High-Impact HR Operational Services function – 1) Knowledge Management, 2) Community Building, 3) Support, 4) Collaboration and 5)
Information Sharing and Notifications.2Data cleanup should be recognized as the sixth integration point
Business Drivers and Leading Practices
Creating “Moments that Matter”2 Moving from Administrative to Operational1
There are multiple opportunities for HR Operational Services to
create “Moments that Matter” throughout the entire HR
Customer Lifecycle
CIWeave in Continuous
Improvement initiatives to
enable High-Impact HR
Operational Services
Invest In a “system of
engagement” rather
than a “system of
record”
Visibility The business is
demanding visibility
into performance
metrics
17 Copyright © 2015 Deloitte Development LLC. All rights reserved.
Inquiry Services
• Keys for providing a great HR Operational Services customer experience are: 1) introducing leading practices of consumer relationship
management that focus on human engagement, 2) align programs and services with business strategy and exploit on desired elements of
organizational culture, 3) cultivate customer-service capabilities that are built of employee respect and empathy, 4) deploy systems and tools that
engage customers and drive collaboration, 5) measure the return from customer-focused initiatives and “great” experiences, 6) provide efficient and
easy to consumer services to respect customer’s time, 7) build trust by providing consistent and thorough services, 8) deliver end-to-end services
with minimal handoffs or disruptions, and 9) follow up on commitments and pursue issues to resolution to build credibility2
Business Drivers and Leading Practices
69% Of HR Professionals indicated
the challenge of maintaining
customer-centricity is “very” or
“extremely” significant2Reengineer
Reengineer
before
automating
Maximize business impact via a “hybrid” approach2
Inquiry Services delivers HR Operational Services from centralized functions (global / regional / country level) to HR customers
and responds to inquiries related to employee / manager self-service transactions, role-based HR content and knowledge base,
search capabilities, access to HR data and reports, and access to HR applications/vendors.1
1 Deloitte - HR Strategy and Planning Toolkit: Critical Needs. 2014.
2 Deloitte - HR Shared Services: Trends in the Market. 2015.
Inquiry Services Key Responsibilities1
• Respond to customer requests and provide guidance to
employees and managers through the contact center and IM /
chat support
• Consistently execute HR processes, using self-service
technology, case management, and telephony as applicable
• Provide guidance to employees and managers on self-service
transactions
• Assist employees and managers in navigating the HR portal
• Research solutions to HR customer inquiries and escalate as
needed
• Understand and be able to communicate HR policies,
processes, and procedures
• Review HR data and deliver reports to Specialized Services
• Coordinate and integrate with other functions (IT, Legal,
Finance, etc.) and external parties or vendors
FocusOn enabling high
customer engagement
with deeply interactive
experiences
18 Copyright © 2015 Deloitte Development LLC. All rights reserved.
Transactions delivers HR Operational Services from centralized functions (global / regional / country level) to HR customers and
assists with transactions related to general and knowledge-based HR inquiries, contact center, IM / chat support, labor arbitrage /
escalations, and case management.1
Transactions
• Payroll administration continues to be the #1 HR Process executed via Shared Services2
• Payroll / Time Administration and Call Center Management are the top HR processes outsourced2
• Improvements in technology and accessibility to knowledge management tools for all HR Operational Services roles has increased the amount
of information available to research and resolve issues faster and at lower levels2
• The Communities of Expertise (CoE) functions are realizing that in order to provide true consultative and design services to the business, there
is a need to shift more of the program administrative and high-volume repetitive delivery work to the Functional Specialists2
Business Drivers and Leading Practices
18% Of technology spend
was directly allocated to
improving the customer
experience2
73%Of HR professionals indicated
that the reason they are replacing
their HR software is to improve
the customer experience2
Transactions Key Responsibilities1
• Research solutions to HR customer transactional requests
• Understand and be able to communicate HR policies,
processes, and procedures
• Review HR transactional data and deliver reports to
Specialized Services
• Coordinate and integrate with other functions (IT, Legal,
Finance, etc.) and external parties (e.g., vendors)
• Provide transactional HR process and system support
• Execute compliance and regulatory reporting
Top HR Shared Services Technologies2
The top HR Shared Services Technologies are key enablers of
both customer interactions and internal processes
1 Deloitte - HR Strategy and Planning Toolkit: Critical Needs. 2014.
2 Deloitte - HR Shared Services: Trends in the Market. 2014.
61%Of HR professionals
indicated that they would
be replacing their HR
software within 18 months2
19 Copyright © 2015 Deloitte Development LLC. All rights reserved.
Specialized Services
1 Deloitte - HR Strategy and Planning Toolkit: Critical Needs. 2014.
2 Deloitte - HR Shared Services: Trends in the Market. 2015.
• Specialized Services is one of the key differentiators that enables organizations to evolve from “classic” Shared Services to HR Operational
Services within the High-Impact HR Operating Model
• A major challenge is to continually improve operations and overall service delivery by driving standardization, aggressively managing service
channels, and expanding the scope of services delivered2
• Talent is playing a growing role in HR Shared Services. Organizations are realizing the importance of HR Shared Services talent and responding
with new strategies, programs, and policies2
Business Drivers and Leading Practices
ShiftFrom a Federated Model
to a Coordinated Model to
maximize business impact2
Specialized Services Key Responsibilities1 Measurement increases ROI2
Specialized Services handles escalations for complex inquiries in addition to owning and delivering continuous improvement,
vendor management, operational reporting, service management, and special initiatives.1
• Offer specialty services to the business in partnership with
Business HR and CoEs (e.g., recruiting, employee relations,
leave administration, learning and development, etc.)
• Manage complex inquiry and escalation resolution
• Oversee the HR Operational Services organization to
establish seamless HR service delivery and operational
excellence
• Work on continuously improving HR service delivery
• Synthesize data prepared by Inquiry Services and
Transactions and deliver analytics to CoE
• Support HR Strategy and Operations CoE in vendor
management
• Oversee the day-to-day management of HR programs
• Facilitate change management
• Manage HR technology, reporting, and analytics
Performance Metrics dominate HR SSC’s Governance focus
InsightsAnalyze data to
discern actionable
business insightsFocus
On delivering customer-
centric outcomes with
the business, HR, and
individual employees
21 Copyright © 2015 Deloitte Development LLC. All rights reserved.
Org. Effectiveness & Change ManagementOrganization Effectiveness & Change Management advises and supports the business to enable end-user adoption of change
through a combination of organizational transformation, project, and change management support initiatives. Additional sub-functions
include: Organization Design, Employee Engagement and Culture.
CoE
• Provide guidance and advice on large scale
projects and programs that directly impact
the effectiveness of the organization
• Work with business to design future state
organizational structures, roles, and jobs
• Play leading role in guiding change
management activities and strategies,
stakeholder management, leadership
alignment and change impact assessments
• Assist Business HR and the business in
developing Change Management Strategy
• Provide consultation as related to
organization design in coordination with
Business HR
HR Operational Services
• Create reorganization based on the request
submitted by the requestor
• Update organizations / organization
structures
• Notify required parties of changes
• Load the applicant data into the system of
record
• Generate standard reports and provide
further analysis and actionable insight for
the business
• Provide scorecards / dashboards that
accurately capture HR metrics
Business HR
• Partner with CoE to identify opportunities to
conduct organization assessment,
diagnosis, improve organizational
effectiveness, and/or provide guidance on
large scale projects and programs
• Guide business leaders to obtain
stakeholder buy-in and act as liaison
between business leaders and the OE and
Change Management Group to drive
consistent organizational design strategies
and approaches
• Coordinate with the respective parties agree
on the approved changes post consultation
with the OE and Change Management
Delivery Channels, Key Activities and Interactions
Executive Leadership: Sets the vision, strategic direction, and HR S&O Agenda
• Effective and disciplined governance of Enterprise Change Management is a critical success factor for any HR Total Rewards initiative
• Large-scale transformations should be managed as one collective program in order to align, deploy, develop, and re-deploy resources and
standardize PMO processes
• Change Analytics are becoming increasingly important as a way to link Total Rewards-related programs and initiatives to business impact
Business Drivers and Leading Practices
DataChange Analytics link
transformations and all
programs to impact
1 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - Predictions for 2015: Redesigning the Organization for a Rapidly
Changing World. Bersin, J. 2014.
59%Of executives report
increased change
management as a top
concern1
GovernanceSupport change
initiatives with
broad governance
23 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR StrategyHow are you ensuring that your
overarching and HR functional
strategies are aligned?
How does your HR Strategy
support and enable business
strategy?
How are you enabling the
development and implementation
of HR best practices?
How are you enabling HR
capability across all functions to
drive business impact?
HR Reporting &
WFA
How does your HR Reporting &
Workforce Analytics capability
enable HR and the business?
How are you creating pull /
demand from your customers?
How do your professionals
identify business insights through
data analysis?
How are you using multi-scenario
predictive analytics to maximize
the business impact of HR?
M&AHow are you aligning the
integration / separation Talent
Strategy with the M&A Strategy?
How do you plan to integrate /
separate HR vendors, plans, and
strategies?
How does HR integrate with
other functional teams (i.e.
Supply Chain, Finance, IT, etc.)?
How are you measuring the
impact of the HR component of
the integration / separation?
HR Tech
Strategies &
Systems
How you integrating your various
HR technologies and systems to
enable business impact?
How are you integrating your HR
Technology Strategy with the HR
and business strategies?
How are you staying ahead of
the latest technology trends that
will enable business impact?
How are you measuring the
business impact of your HR
Technologies and Systems?
HR Vendor
Mgmt.
How are you gaining economies
of scale in your vendor
relationships?
How are you optimizing your
insourced, outsourced, and
hybrid relationships?
How are you keeping current on
the latest trends and
opportunities for improvement?
How are you measuring the
effectiveness and impact of your
vendor partners?
HR PMOHow is your HR PMO function
structured?
How are you integrating your HR
PMO function with the HR
Governance function?
How are you managing all HR
initiatives under one overarching
PMO structure?
How are you measuring the
effectiveness and business
impact of the HR PMO function?
HR GovernanceWhat is your overarching HR
Governance Strategy?
How are you integrating your HR
Governance function with the HR
PMO function?
How are you ensuring a
consistency and alignment of all
Sub-Governance functions?
How do you identify, implement
and measure continuous
improvement opportunities?
HR Operational
Services
How are your three functions
supporting the overarching
business and HR strategies?
How are you ensuring
consistency, CI and performance
across all three functions?
How is your staff creating
“Moments that Matter” with their
customers?
How are you enabling visibility on
performance and impact with HR
and the business?
Organization
Effectiveness &
Change
Management
How would employees describe
your culture?
How are you measuring the
business impact of OE / CM
initiatives?
How are you managing all large-
scale transformations through an
enterprise OE / CM function?
What is the business impact that
your OE / CM functions enable?
HR Strategy & Operations “Call to Action” To fully exploit the value-add that the HR Strategy & Operations Portfolio Solutions can enable, HR should understand how it is
currently positioned (from service delivery maturity and capability perspectives) across each discrete portfolio solution and determine
the desired direction for the future state.
How are you performing across the HR Strategy & Operations Portfolio of Solutions?
24 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR S&O Service Delivery – Capability Implications
1 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP – High-Impact HR: Building Organizational Performance from the Ground Up; Mallon, D; Shellenback, K.; Bersin, J.; & Kowske, B. 2014.
2 Deloitte University Press - Global Human Capital Trends 2015:: Leading in the New World of Work. 2015
3 Deloitte - Reskilling HR: Expanding HR’s Business Advisor Proficiencies. Benko, C., & Mazor, A. 2014.
4 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - (1) The Language of Talent Management and the Smarter Workforce, Kenexa / IBM, 2013, and (2) Redesigning Work Creates a
Smarter Workforce, Kenexa / IBM, 2013 in The Role of Job-Specific Competencies in Enabling Business Execution. Sherman Garr, S. 2014.
HR’s capability to deliver business impact appears to be in serious question and should be a top priority for HR Leaders to focus
on, as only 11% of business and HR executives feel their organizations provide “excellent development” for their HR staff2.
Moving the needle on the capability continuum will not only improve HR Service Delivery, but will also improve credibility and
relationships with HR’s business customers.
• Attributes of exceptional HR functions: Develops effective leaders, proactively solves business challenges, embeds HR agenda w/in business
strategy, mitigates organizational / people risk, provides insights for business decisions, and educates the business on critical HR trends3
• Emerging capabilities needed by HR include: Identifying and growing organization-specific employee skills, working with a multi-generational
workplace, driving the right level of localization, applying social technologies, driving employee and leadership engagement, moving beyond the
four walls of HR and the organization, and incubating a culture of innovation and customer satisfaction3
• Better financial outcomes and improved Talent performance are realized when organizations effectively manage competencies4
Business Drivers and Leading Practices
61%Of executives report that
HR is weak in linking data
to business performance242%
Of Business / HR
Executives report HR
underperforms in Talent
Programs2
47%Of Business / HR Executives
report that HR is underinvesting
in building HR capability (citing
“weak” programming)2
HR Capability Gaps1
Reskilling HR is a top-three priority of the Top Global Talent
Priorities – as well as an area of biggest capability gap1
Perception of HR’s Capabilities2
Both HR and Business Executives concur a substantial
opportunity for improving HR Capabilities exists2
25 Copyright © 2015 Deloitte Development LLC. All rights reserved.
HR S&O Service Delivery – Competency Mgmt.
1 Deloitte - HR Operational Services Job Descriptions. 2014.
2 Deloitte - HRT Strategy and Planning Toolkit: High-Impact HR Communities of Expertise Job Profiles Tool. 2014.
3 Deloitte - HRT Strategy and Planning Toolkit: High-Impact HR Business HR Job Profiles Tool. 2014.
4 Deloitte - HR Roles and Role Definitions. 2014.
HR should perpetually invest in capability development in order to close the performance gaps that both the business and HR have
identified as highly problematic. Listed below are Core Competencies that professionals in all HR Service Delivery Channels should
possess, as well as specific functional competencies required to deliver High-Impact HR. Targeted proficiency levels will vary by level
and specific role-based competencies will vary by HR Service Delivery Channel, function, industry, and customers / geographies served.
Core HR Competencies1
• Strong consulting, customer service, analytical, problem-solving, planning and decision making skills
• Superior verbal and written communication skills, including: influencing, negotiations, partnering, and collaborating with multiple stakeholders
• Strong business and HR acumen that enables the translation of business requirements into HR initiatives that drive impact
• Understanding of HR and business trends in order to apply HR leading practices to resolve complex business challenges and opportunities
• Deep knowledge of HR processes and policies, project management, and continuous improvement capabilities
Executive Leadership2,3,4
• Strong ability to interface with senior
business and functional executives
and serve as strategic business
consultants in order to achieve the
desired business goals and impact
• Able to define and cascade the HR
vision, strategy and priorities
• Able to apply leadership principles to
motivate, inspire, develop and
manage the HR organization
• Strong ability to develop and maintain
key metrics and success measures,
monitor results, identify and mitigate
talent and workforce-related risks
• Strong ability to translate business
strategy to HR strategy and talent
strategy, champion change and
people initiatives, and be a cultural
steward
• Ability to seamlessly interact across
the HR Operating Model and provide
guidance and governance across
global / regional business units
• Deep experience identifying and
implementing HR leading practices
CoE2
• Strategic HR business and Human
Capital planning; HR innovation
expertise
• Ability to lead work across multiple
business units / geographies that
have diverse business objectives
• Knowledgeable about regulatory
considerations, data privacy, and
labor unions in global geographies
• Understand taxation nuances at
federal and local levels
• Experienced with partnering with
global client groups and navigating
cultural nuances
• Deep awareness and understanding
of business / HR trends and able to
develop / implement leading practices
• Deep experience in partnering with
BU HR, Executive Leadership, and
HR Operational Services to Define,
Design, and Deploy initiatives
• Strong ability to analyze data and
discern business insights
• Strong ability to develop and deepen
credibility with customers
Business HR3,4
• Go to the “Gemba” (where the work
is) in order to truly understand the
customer’s business challenges and
opportunities
• Ability to apply HR knowledge /
experience across all HR policies,
programs, processes, and functions
• Ability to establish and maintain
effective working relationships with
employees, managers and HR teams
• Strong ability to develop credibility
with business customers in order to
provide people and workforce-related
advice, strategies, and solutions
• Ability to coach and develop leaders
and managers to deliver people
management capabilities
• Ability to understand the business
and industry nuances as well as their
customers and implement HR
initiatives that drive business impact
• Partner with the business to identify
initiatives and opportunities to drive
strategic and tactical change
HR Operational Svcs.1
• Demonstrated experience in HRSS /
Operations, HR business process
improvement and redesign, and
operational management
• Superior understanding of HR
functional components and the
interaction across various areas in
HR operations
• Understands call center concepts and
can easily employ them for process
improvements
• Experience with defining and
managing Customer Service
Technology (e.g., Case Management
System, Knowledge Base System)
• Proven experience in developing and
implementing customer service
strategies
• Ability to set and drive HRSS strategy
and execution in alignment with the
vision of HR and business priorities of
the enterprise
• Demonstrated effectiveness when
dealing with dissatisfied customers
Functional HR Delivery Channel Competencies1
26 Copyright © 2015 Deloitte Development LLC. All rights reserved.
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© 2015 Deloitte The Netherlands
For more information please contact
Fred Sonneville
Director HR Transformation, Talent Management and
HCM Cloud solutions
+31 (0) 6 125 81 988